half yearly december 2015 - sindh leasing company ltd. · 11/7/2017 · mr. muhammad bilal sheikh...
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Half Yearly December 2015 SINDH EL ASING
1
Table of Contents
Directors’ Report
Corporate Information
Balance Sheet
Profit and Loss Account
Cash Flow Statement
Statement of Changes in Equity
Notes to the Financial Information
Statement of Comprehensive Income
02
03
04
05
06
07
08
09
10
Vision & Mission Statements
Half Yearly December 2015 SINDH EL ASINGHalf Yearly December 2015 SINDH EL ASING
2
VisionTo catalyze the untapped potential of theeconomy through ease of access to financesacross sectors – ranging from the agro-basedto industrial – leading the country towards
prosperity.
MissionPreferably to provide lease finance and other products
and services, tailor made to suit therequirements of the customer, be it a small
farmer, small and medium sizeentrepreneur(s) or enterprise(s) or woman
owned business, for sustainable and long term financial solutions.
Corporate Information
Board of Directors
- Non-Executive Director
- Non-Executive Director
- Non Executive Director
- Independent Non-Executive Director
- Independent Non-Executive Director
- Independent Non-Executive Director
Company Secretary
Mr. Rehan Anjum
Audit Committee
Registered Office
Syed Shahnawaz Nadir Shah Imran MalikSyed Saeed Reza - Chairman
- Member - Member
Third Floor, Imperial Court Building
Dr. Ziauddin Ahmed Road, Karachi
Banker
Branch Offices
Sindh Bank Limited
Mr. Imran MalikMr. Bilal SheikhMr. Sohail Khan Rajpot
Larkana / Naudero BranchRaza Shah Mohallah, VIP RoadLarkana
Chairman - Non-Executive Director-
Chief Executive-
Hyderabad Branch
Auditors
BDO Ebrahim & Co.Chartered Accountants2nd Floor, Block C Lakson Square Building-1Sarwar Shaheed Road Karachi.
Legal Advisor
Muhammad Nadeem Khan Suite # 28-A, 2nd FloorFareed Chamber Abdullah Haroon Road Karachi
Web: www.sindhleasingltd.com
Plot No. 11Faraz Villas Housing SchemeTaluka QasimabadHyderabad
Bank Islami Pakistan Limited
Mr. Muhammad Bilal Sheikh
Mr. Sohail Khan Rajput
Syed Shahnawaz Nadir Shah
Syed Saeed Reza
Mr. Muhammad Imran Malik
Mr. Ali Murtaza Kazmi
Mr. Naim FarooquiMr. Rehan Anjum
Human Resource Committee
- Chairman - Member - Member
United Bank Limited
3
Rawalpindi BranchFirst Floor,K-583, Chaudary Maula dad Khan RoadMurree RoadRawalpindi Lahore BranchSecond Floor,Plot No.S-19 R-30Sharah-e-Quaid-e-AzamLahore
Half Yearly December 2015 SINDH EL ASINGHalf Yearly December 2015 SINDH EL ASING
2
VisionTo catalyze the untapped potential of theeconomy through ease of access to financesacross sectors – ranging from the agro-basedto industrial – leading the country towards
prosperity.
MissionPreferably to provide lease finance and other products
and services, tailor made to suit therequirements of the customer, be it a small
farmer, small and medium sizeentrepreneur(s) or enterprise(s) or woman
owned business, for sustainable and long term financial solutions.
Corporate Information
Board of Directors
- Non-Executive Director
- Non-Executive Director
- Non Executive Director
- Independent Non-Executive Director
- Independent Non-Executive Director
- Independent Non-Executive Director
Company Secretary
Mr. Rehan Anjum
Audit Committee
Registered Office
Syed Shahnawaz Nadir Shah Imran MalikSyed Saeed Reza - Chairman
- Member - Member
Third Floor, Imperial Court Building
Dr. Ziauddin Ahmed Road, Karachi
Banker
Branch Offices
Sindh Bank Limited
Mr. Imran MalikMr. Bilal SheikhMr. Sohail Khan Rajpot
Larkana / Naudero BranchRaza Shah Mohallah, VIP RoadLarkana
Chairman - Non-Executive Director-
Chief Executive-
Hyderabad Branch
Auditors
BDO Ebrahim & Co.Chartered Accountants2nd Floor, Block C Lakson Square Building-1Sarwar Shaheed Road Karachi.
Legal Advisor
Muhammad Nadeem Khan Suite # 28-A, 2nd FloorFareed Chamber Abdullah Haroon Road Karachi
Web: www.sindhleasingltd.com
Plot No. 11Faraz Villas Housing SchemeTaluka QasimabadHyderabad
Bank Islami Pakistan Limited
Mr. Muhammad Bilal Sheikh
Mr. Sohail Khan Rajput
Syed Shahnawaz Nadir Shah
Syed Saeed Reza
Mr. Muhammad Imran Malik
Mr. Ali Murtaza Kazmi
Mr. Naim FarooquiMr. Rehan Anjum
Human Resource Committee
- Chairman - Member - Member
United Bank Limited
3
Rawalpindi BranchFirst Floor,K-583, Chaudary Maula dad Khan RoadMurree RoadRawalpindi Lahore BranchSecond Floor,Plot No.S-19 R-30Sharah-e-Quaid-e-AzamLahore
Half Yearly December 2015 SINDH EL ASINGHalf Yearly December 2015 SINDH EL ASING
Directors’ Report
On behalf of the Board of Directors of Sindh Leasing Company Limited, I am pleased to present the Directors' review along with the unaudited condensed interim financial information for the six months period ended December 31, 2015.
4
Operating Results and Business overview
The Company earned net revenue of Rs. 55.00 million during the six months period under review as against a budgeted net revenue of Rs 48.18 million. Total administrative expenses for the period amounted to Rs 30.54 million versus a budgeted amount of Rs 27.19 million. The company recorded an after tax profit of Rs 15.52 million as against a budgeted after tax profit of Rs 12.31 million.
The after tax profit for the period under review is less than the comparative period last year by Rs. 5.84 million on account of falling interest rates and higher administrative expenses which were incurred to gear up for higher business volumes to flow in from north region where two new branches have been set up. Moreover the company as a matter of prudence has also made 1% general provision to manage potential lease losses.
Our prudent and proactive risk management approach has helped in continuing the Company’s growth momentum despite low interest rate scenario. Banks are also entering the niche market that SLCL caters to maintenance of spreads to compete will be a challenge that the company will face to maintain its profit through increase in disbursements.
Board of Directors
During the period under review Mr. Naim Farooqui resigned as the Chief Executive who was nominated President and th
CEO of Sindh Bank Limited by the Government of Sindh and relinquished charge on 4 December 2015. The Board th
subsequently appointed Mr. Rehan Anjum as Chief Executive Officer with effect from 15 December 2015, subject to SECP’s approval which has since been received. He has been serving the company as Chief Financial Officer and Company Secretary since its inception.
Future Outlook
Pakistan is experiencing an economic growth, where the government envisions a G.D.P growth of 5.5% p.a. for the next six years. Nevertheless, future growth would depend on the overall security situation, as improvement in this would result in an inflow of investments both local and foreign.
In these conditions we can expect opportunities for off take of loan by the private sector and developing/deepening of relations with them. Our focus on delivery of the best services and execution of operations with utmost efficiency would remain unabated.
Credit Rating
JCR-VIS Credit Rating Company Limited has rated the Company for long-term as ‘A’ (Single A), and for short term ‘A-2’ (A minus two). Outlook on the assigned rating is 'Stable'.
Acknowledgements
On behalf of the Board we would like to extend our gratitude to our valued customers for the confidence that they have shown in us. We would extend this acknowledgement to the Government of Sindh for their unwavering support which is reflected in the by placement of additional funds with us. SECP’s support and guidance has always been available when required. SLCL's staff too has continued to work hard with dedication and commitment in the quarter in producing the desired results on all fronts and the Board wishes to place on record its appreciation and encouragement.
Rehan Anjum Chief Executive January 19, 2016
December 31, June 30,2015 2015
Paid-up capitalTotal equityFixed assetsNet investment in Finance leaseWorking Capital loan and others
July 01, 2015 to July 01, 2014 toDec 31, 2015 Dec 31, 2014
Revenue -NetAdministrative expenses ProvisionsProfit before taxProfit after tax
1,000.001,075.27
30.16696.00106.36
55.0030.54
2.5221.9415.52
1,000.001,059.75
32.37444.18
3.88
53.1321.25
-31.8821.36
Balance Sheet(PKR Million)
Profit & Loss
Condensed Interim Balance Sheet (Un-audited)As at December 31, 2015
5
___________ ___________________Chairman Chief Executive
- 0
December 31, June 30,Note 2015 2015
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment
Intangible assets
Net investment in finance leases 4
Long term loan and deposits
CURRENT ASSETS
Short term investment 5
Accrued markup
Current maturity of non-current asset 6
Working Capital loan and Prepayments
Taxation - net
Cash and bank balances
TOTAL ASSETS
EQUITY AND LIABILITIES
CAPITAL AND RESERVES
Authorized share capital
Issued, subscribed and paid-up share capital
Reserve
Total equity
NON CURRENT LIABILITIES
Long term security deposit against lease 7
Long term Placement - Government of Sindh
Deferred tax and other liabilities
CURRENT LIABILITIES
Trade and other payables
Advance against lease
Markup accrued on short term borrowings
Short term borrowings
CONTINGENCIES AND COMMITMENTS 8
TOTAL EQUITY AND LIABILITIES
30,164,812
1,169,857
540,015,845
16,249,917587,600,431
542,153,799
1,705,974
153,004,823
106,364,236
-
76,007,497
879,236,329
1,466,836,760
1,000,000,000
1,000,000,000
75,268,539
1,075,268,539
110,775,310
250,000,000
14,069,153
374,844,463
10,228,072
5,000,000
1,495,685
-
16,723,757
1,466,836,760
32,369,754
611,003
357,053,069
13,805,819403,839,645
347,669,705
3,270,961
85,698,795
3,887,259
5,686,994
392,385,487
838,599,201
1,242,438,846
1,000,000,000
1,000,000,000
59,748,636
1,059,748,636
70,250,138
-
6,124,085
76,374,223
10,506,040
-
809,947
95,000,000
106,315,987
1,242,438,846ok
The annexed notes 1 to 11 form an integral part of these condensed interim financial information.
-----------------Rupees---------------
Half Yearly December 2015 SINDH EL ASINGHalf Yearly December 2015 SINDH EL ASING
Directors’ Report
On behalf of the Board of Directors of Sindh Leasing Company Limited, I am pleased to present the Directors' review along with the unaudited condensed interim financial information for the six months period ended December 31, 2015.
4
Operating Results and Business overview
The Company earned net revenue of Rs. 55.00 million during the six months period under review as against a budgeted net revenue of Rs 48.18 million. Total administrative expenses for the period amounted to Rs 30.54 million versus a budgeted amount of Rs 27.19 million. The company recorded an after tax profit of Rs 15.52 million as against a budgeted after tax profit of Rs 12.31 million.
The after tax profit for the period under review is less than the comparative period last year by Rs. 5.84 million on account of falling interest rates and higher administrative expenses which were incurred to gear up for higher business volumes to flow in from north region where two new branches have been set up. Moreover the company as a matter of prudence has also made 1% general provision to manage potential lease losses.
Our prudent and proactive risk management approach has helped in continuing the Company’s growth momentum despite low interest rate scenario. Banks are also entering the niche market that SLCL caters to maintenance of spreads to compete will be a challenge that the company will face to maintain its profit through increase in disbursements.
Board of Directors
During the period under review Mr. Naim Farooqui resigned as the Chief Executive who was nominated President and th
CEO of Sindh Bank Limited by the Government of Sindh and relinquished charge on 4 December 2015. The Board th
subsequently appointed Mr. Rehan Anjum as Chief Executive Officer with effect from 15 December 2015, subject to SECP’s approval which has since been received. He has been serving the company as Chief Financial Officer and Company Secretary since its inception.
Future Outlook
Pakistan is experiencing an economic growth, where the government envisions a G.D.P growth of 5.5% p.a. for the next six years. Nevertheless, future growth would depend on the overall security situation, as improvement in this would result in an inflow of investments both local and foreign.
In these conditions we can expect opportunities for off take of loan by the private sector and developing/deepening of relations with them. Our focus on delivery of the best services and execution of operations with utmost efficiency would remain unabated.
Credit Rating
JCR-VIS Credit Rating Company Limited has rated the Company for long-term as ‘A’ (Single A), and for short term ‘A-2’ (A minus two). Outlook on the assigned rating is 'Stable'.
Acknowledgements
On behalf of the Board we would like to extend our gratitude to our valued customers for the confidence that they have shown in us. We would extend this acknowledgement to the Government of Sindh for their unwavering support which is reflected in the by placement of additional funds with us. SECP’s support and guidance has always been available when required. SLCL's staff too has continued to work hard with dedication and commitment in the quarter in producing the desired results on all fronts and the Board wishes to place on record its appreciation and encouragement.
Rehan Anjum Chief Executive January 19, 2016
December 31, June 30,2015 2015
Paid-up capitalTotal equityFixed assetsNet investment in Finance leaseWorking Capital loan and others
July 01, 2015 to July 01, 2014 toDec 31, 2015 Dec 31, 2014
Revenue -NetAdministrative expenses ProvisionsProfit before taxProfit after tax
1,000.001,075.27
30.16696.00106.36
55.0030.54
2.5221.9415.52
1,000.001,059.75
32.37444.18
3.88
53.1321.25
-31.8821.36
Balance Sheet(PKR Million)
Profit & Loss
Condensed Interim Balance Sheet (Un-audited)As at December 31, 2015
5
___________ ___________________Chairman Chief Executive
- 0
December 31, June 30,Note 2015 2015
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment
Intangible assets
Net investment in finance leases 4
Long term loan and deposits
CURRENT ASSETS
Short term investment 5
Accrued markup
Current maturity of non-current asset 6
Working Capital loan and Prepayments
Taxation - net
Cash and bank balances
TOTAL ASSETS
EQUITY AND LIABILITIES
CAPITAL AND RESERVES
Authorized share capital
Issued, subscribed and paid-up share capital
Reserve
Total equity
NON CURRENT LIABILITIES
Long term security deposit against lease 7
Long term Placement - Government of Sindh
Deferred tax and other liabilities
CURRENT LIABILITIES
Trade and other payables
Advance against lease
Markup accrued on short term borrowings
Short term borrowings
CONTINGENCIES AND COMMITMENTS 8
TOTAL EQUITY AND LIABILITIES
30,164,812
1,169,857
540,015,845
16,249,917587,600,431
542,153,799
1,705,974
153,004,823
106,364,236
-
76,007,497
879,236,329
1,466,836,760
1,000,000,000
1,000,000,000
75,268,539
1,075,268,539
110,775,310
250,000,000
14,069,153
374,844,463
10,228,072
5,000,000
1,495,685
-
16,723,757
1,466,836,760
32,369,754
611,003
357,053,069
13,805,819403,839,645
347,669,705
3,270,961
85,698,795
3,887,259
5,686,994
392,385,487
838,599,201
1,242,438,846
1,000,000,000
1,000,000,000
59,748,636
1,059,748,636
70,250,138
-
6,124,085
76,374,223
10,506,040
-
809,947
95,000,000
106,315,987
1,242,438,846ok
The annexed notes 1 to 11 form an integral part of these condensed interim financial information.
-----------------Rupees---------------
Half Yearly December 2015 SINDH EL ASINGHalf Yearly December 2015 SINDH EL ASING
Condensed Interim Profit and Loss Account (Un-audited)
6
2015 2014 2015 2014
INCOME
Income from finance leases 34,320,126 5,637,015 17,795,199 3,192,619Income from auto & working capital loan 1,108,059 - 742,739 -
Return on investments and deposits 21,223,045 47,433,616 8,707,870 23,785,301Other income 91,099 57,129 33,768 4,500
56,742,329 53,127,760 27,279,576 26,982,420
EXPENSES
Finance cost (1,749,220) - (1,505,221) -Administrative expenses (30,533,890) (21,248,899) (15,623,306) (11,207,154)
Provision for WWF & Potential lease losses (2,518,413) - (793,208) (34,801,523) (21,248,899) (17,921,735) (11,207,154)
Profit before taxation 21,940,806 31,878,861 9,357,841 15,775,266
Taxation (6,420,903) (10,520,674) (2,633,433) (5,189,120)
Profit after taxation 15,519,903 21,358,187 6,724,408 10,586,146
Earnings per share - basic and diluted (Rupee) 0.16 0.21 0.07 0.11
The annexed notes 1 to 11 form an integral part of these condensed interim financial information.
For the six months period ended December 31, 2015
-----------------------------------Rupees------------------------------------
Six months period ended
31 December 31 December
___________ ___________________Chairman Chief Executive
- 0
-
Condensed Interim Statement of Comprehensive Income (Un-audited)
7
2015 2014 2015 2014
Profit after taxation for the period 15,519,903 21,358,187 6,724,408 10,586,146
Other comprehensive income - - - -
Total comprehensive income for the period 15,519,903 21,358,187 6,724,408 10,586,146
The annexed notes 1 to 11 form an integral part of these condensed interim financial information.
Three months period ended
31 December
--------------------------------Rupees--------------------------------
For the six months period ended December 31, 2015
Six months period ended
31 December
___________ ___________________Chairman Chief Executive
Half Yearly December 2015 SINDH EL ASINGHalf Yearly December 2015 SINDH EL ASING
Condensed Interim Profit and Loss Account (Un-audited)
6
2015 2014 2015 2014
INCOME
Income from finance leases 34,320,126 5,637,015 17,795,199 3,192,619Income from auto & working capital loan 1,108,059 - 742,739 -
Return on investments and deposits 21,223,045 47,433,616 8,707,870 23,785,301Other income 91,099 57,129 33,768 4,500
56,742,329 53,127,760 27,279,576 26,982,420
EXPENSES
Finance cost (1,749,220) - (1,505,221) -Administrative expenses (30,533,890) (21,248,899) (15,623,306) (11,207,154)
Provision for WWF & Potential lease losses (2,518,413) - (793,208) (34,801,523) (21,248,899) (17,921,735) (11,207,154)
Profit before taxation 21,940,806 31,878,861 9,357,841 15,775,266
Taxation (6,420,903) (10,520,674) (2,633,433) (5,189,120)
Profit after taxation 15,519,903 21,358,187 6,724,408 10,586,146
Earnings per share - basic and diluted (Rupee) 0.16 0.21 0.07 0.11
The annexed notes 1 to 11 form an integral part of these condensed interim financial information.
For the six months period ended December 31, 2015
-----------------------------------Rupees------------------------------------
Six months period ended
31 December 31 December
___________ ___________________Chairman Chief Executive
- 0
-
Condensed Interim Statement of Comprehensive Income (Un-audited)
7
2015 2014 2015 2014
Profit after taxation for the period 15,519,903 21,358,187 6,724,408 10,586,146
Other comprehensive income - - - -
Total comprehensive income for the period 15,519,903 21,358,187 6,724,408 10,586,146
The annexed notes 1 to 11 form an integral part of these condensed interim financial information.
Three months period ended
31 December
--------------------------------Rupees--------------------------------
For the six months period ended December 31, 2015
Six months period ended
31 December
___________ ___________________Chairman Chief Executive
Half Yearly December 2015 SINDH EL ASINGHalf Yearly December 2015 SINDH EL ASING
Condensed Interim Cash Flow Statement (Un-audited)
8
2015 2014
CASH FLOW FROM OPERATING ACTIVITIES
Profit before taxation 21,940,806 31,878,861
Adjustment for: - Depreciation 3,059,754 2,550,130
- Provision for potential lease loss 2,518,413 - - Finance Cost 1,495,685 - - Unrealised Gain on investments (5,552,998) -
- Provision for provident fund and gratuity fund 1,448,701 -2,969,555 2,550,130
Operating profit before working capital changes 24,910,361 34,428,991
Movement in working capital(Increase) / decrease in operating assets
- Working capital loan and prepayments (102,476,977) 776,626 - Accrued mark-up 1,564,987 739,726
- Investment in finance leases (251,819,275) (71,780,699) - Long term loans and deposits (5,421,889) (7,179,249)
- Advance against lease 5,000,000 - - Stamp papers in hand (205,497) 16,830Increase / (decrease) in operating liabilities- Accrued and other (29,797) (983,227)- Short Term Borrowings (95,000,000) -- Long term security deposit against lease 40,525,172 9,888,980
(407,863,276) (68,521,013)(382,952,915) (34,092,022)
Cash utlized from operations
Finance Cost Paid (856,539) -
Taxes paid (3,754,872) (9,811,335)
Net cash utlised from operating activities (387,564,326) (43,903,357)
CASH FLOW FROM INVESTING ACTIVITIES
Capital expenditure (813,665) (3,465,639)Short term investments (178,000,000) 900,000,000
Net cash utilised from investing activities (178,813,665) 896,534,361
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds against fund received - Government of Sindh 250,000,000 -
Net cash generated from financing activities 250,000,000 -
Net increase in cash and cash equivalents (316,377,991) 852,631,004
Cash and cash equivalents at begining of the period 392,385,487 82,012,465Cash and cash equivalents at end of the period 76,007,497 934,643,469
The annexed notes 1 to 11 form an integral part of these condensed interim financial information.
Six months period ended 31 December
------------------Rupees-----------------
For the six months period ended December 31, 2015
___________ ___________________Chairman Chief Executive
Condensed Interim Statement Of Changes In Equity (Un-audited)
9
Balance as at July 01, 2014 1,000,000,000 5,407,992 21,631,967 1,027,039,959
- - 21,358,187 21,358,187
Transfer to statutory reserve - 4,271,637 (4,271,637) -
Balance as at December 31, 2014 1,000,000,000 9,679,629 38,718,517 1,048,398,146
Balance as at July 01, 2015 1,000,000,000 21,762,330 37,986,306 1,059,748,636
- - 15,519,903 15,519,903
Transfer to statutory reserve - 7,759,952 (7,759,952) -
Balance as at December 31, 2015 1,000,000,000 29,522,282 45,746,258 1,075,268,539
The annexed notes 1 to 11 form an integral part of these condensed interim financial information.
Total comprehensive income for the six months period ended December 31, 2014
Total comprehensive income for the six months period ended December 31, 2015
------------------------------------------- Rupees-------------------------------------
Issued,
subscribed and paid-up share
capital Totalprofit
Un- appropriated Statutory
reserve
Reserves
For the six months period ended December 31, 2015
___________ ___________________Chairman Chief Executive
Half Yearly December 2015 SINDH EL ASINGHalf Yearly December 2015 SINDH EL ASING
Condensed Interim Cash Flow Statement (Un-audited)
8
2015 2014
CASH FLOW FROM OPERATING ACTIVITIES
Profit before taxation 21,940,806 31,878,861
Adjustment for: - Depreciation 3,059,754 2,550,130
- Provision for potential lease loss 2,518,413 - - Finance Cost 1,495,685 - - Unrealised Gain on investments (5,552,998) -
- Provision for provident fund and gratuity fund 1,448,701 -2,969,555 2,550,130
Operating profit before working capital changes 24,910,361 34,428,991
Movement in working capital(Increase) / decrease in operating assets
- Working capital loan and prepayments (102,476,977) 776,626 - Accrued mark-up 1,564,987 739,726
- Investment in finance leases (251,819,275) (71,780,699) - Long term loans and deposits (5,421,889) (7,179,249)
- Advance against lease 5,000,000 - - Stamp papers in hand (205,497) 16,830Increase / (decrease) in operating liabilities- Accrued and other (29,797) (983,227)- Short Term Borrowings (95,000,000) -- Long term security deposit against lease 40,525,172 9,888,980
(407,863,276) (68,521,013)(382,952,915) (34,092,022)
Cash utlized from operations
Finance Cost Paid (856,539) -
Taxes paid (3,754,872) (9,811,335)
Net cash utlised from operating activities (387,564,326) (43,903,357)
CASH FLOW FROM INVESTING ACTIVITIES
Capital expenditure (813,665) (3,465,639)Short term investments (178,000,000) 900,000,000
Net cash utilised from investing activities (178,813,665) 896,534,361
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds against fund received - Government of Sindh 250,000,000 -
Net cash generated from financing activities 250,000,000 -
Net increase in cash and cash equivalents (316,377,991) 852,631,004
Cash and cash equivalents at begining of the period 392,385,487 82,012,465Cash and cash equivalents at end of the period 76,007,497 934,643,469
The annexed notes 1 to 11 form an integral part of these condensed interim financial information.
Six months period ended 31 December
------------------Rupees-----------------
For the six months period ended December 31, 2015
___________ ___________________Chairman Chief Executive
Condensed Interim Statement Of Changes In Equity (Un-audited)
9
Balance as at July 01, 2014 1,000,000,000 5,407,992 21,631,967 1,027,039,959
- - 21,358,187 21,358,187
Transfer to statutory reserve - 4,271,637 (4,271,637) -
Balance as at December 31, 2014 1,000,000,000 9,679,629 38,718,517 1,048,398,146
Balance as at July 01, 2015 1,000,000,000 21,762,330 37,986,306 1,059,748,636
- - 15,519,903 15,519,903
Transfer to statutory reserve - 7,759,952 (7,759,952) -
Balance as at December 31, 2015 1,000,000,000 29,522,282 45,746,258 1,075,268,539
The annexed notes 1 to 11 form an integral part of these condensed interim financial information.
Total comprehensive income for the six months period ended December 31, 2014
Total comprehensive income for the six months period ended December 31, 2015
------------------------------------------- Rupees-------------------------------------
Issued,
subscribed and paid-up share
capital Totalprofit
Un- appropriated Statutory
reserve
Reserves
For the six months period ended December 31, 2015
___________ ___________________Chairman Chief Executive
Half Yearly December 2015 SINDH EL ASINGHalf Yearly December 2015 SINDH EL ASING
Notes to the Condensed Interim Financial Information (Un-audited)
1. LEGAL STATUS AND NATURE OF BUSINESS
Sindh Leasing Company Limited (the Company) was incorporated in Pakistan on December 16, 2013 as an unlisted public Company under the Companies Ordinance, 1984. The Company was granted licence on March 27, 2014 to carry out leasing business as a Non-Banking Finance Company (NBFC) under the Non-Banking Finance Companies (Established and Regulations) Rules, 2003. The
rd registered office of the Company is situated at 3 Floor, Imperial Court building, Dr. Ziauddin Ahmad Road, Karachi.
100% shares of the Company are held by the Government of Sindh.
JCR-VIS Credit Rating Company Limited (JCR-VIS) has assigned ‘A’ and ‘A-2’ ratings to the Company for medium to long term and short term respectively on April 28, 2015.
2. BASIS OF PREPARATION
2.1 Statement of Compliance
These condensed interim financial information have been prepared in accordance with approved accounting standards as applicable in Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standard Board as are notified under the Companies Ordinance, 1984, provisions of and directives issued under the Companies Ordinance, 1984, and Non-Banking Finance Companies and Notified Entities Regulations, 2008 (NBFC Regulations). In case requirements differ, provision or directives of the Companies Ordinance, 1984, and Non Banking Finance Companies and Notified Entities Regulations, 2008 shall prevail.
2.2 Basis of Measurement
These condensed interim financial information have been prepared under the historical cost convention.
2.3 Functional and presentation currency
These Condensed interim financial information are presented in Pak Rupees, which is the functional and presentation currency of the Company and rounded off to the nearest rupee.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies adopted in the preparation of these condensed interim financial information are the same as those applied in the preparation of the annual audited financial statements of the company for the year ended June 30, 2015.
10
For the six months period ended December 31, 2015
NOTE Dec 31, 2015 June 30, 2015
4. NET INVESTMENT IN FINANCE LEASES
Lease rentals receivable 714,453,142 465,589,270
Add: Residual value of leased assets 110,775,310 70,250,138
Gross investment in finance leases 825,228,452 535,839,408
Less: Unearned finance lease income (129,223,154) (91,653,385)
Net investment in finance leases 696,005,298 444,186,023
Less: Current maturity of net investment in finance leases 6 (150,027,032) (83,326,954)
Less: Provision for finance leases (5,962,421) (3,806,000)540,015,845 357,053,069
------------- Rupees -------------
Notes to the Condensed Interim Financial Information (Un-audited)
11
For the six months period ended December 31, 2015
5. SHORT TERM INVESTMENTS Dec 31, 2015 June 30, 2015
5.1 Held to Maturity
- Placement 200,000,000 -
- Certificate of Investment (COI)50,000,000 100,000,000
Term deposit reciepts
- Bank Islami Limited135,000,000 -
- United Bank Limited- 100,000,000
385,000,000 200,000,000
5.2 157,153,799 147,669,705
542,153,799 347,669,705
At fair value through profit and loss units of open ended mutual funds
---------------Rupees--------------
5.1 These represent short term Placement with Pak Brunei Investment Co. Ltd. @ 7.20% and COI with PIAR Investment Co. Ltd. @ 6.80%.
5.2 Units of Open ended Mutual Funds
Mutual Funds Number of
Units Dec 31, 2015 June 30, 2015 Dec 31, 2015 June 30, 2015 Dec 31, 2015 June 30, 2015
NIT- Government Bond Fund
9,649,059 - 109,059,636 - 97,669,705 - (11,389,931)
ABL- Government Securities Fund B
NIL (June 2015: 4,983,852) - 50,000,000 - 50,000,000 - -
NAFA - Income Opportunity Fund
14,102,352 (June 2015: Nil) 148,531,139 - 157,153,799 - -
148,531,139 159,059,636 157,153,799 147,669,705 (11,389,931)
----------------------------------------------------(Rupees)----------------------------------------------------
Cost Net Asset Value (NAV) Surplus / (deficit)
8,622,6608,622,660
Dec 31, 2015 June 30, 2015
6. CURRENT MATURITY OF NON CURRENT ASSETS
150,027,032 83,326,954
2,977,791 2,371,841153,004,823 85,698,795
7. LONG TERM SECURITY DEPOSIT AGAINST LEASE 110,775,310 70,250,138
Net investment in finance leases
Long term loans and advances
--------------- Rupees --------------
These represent deposits received from lessee against finance lease and are adjustable against the residual value of the asset leased at the expiry of respective lease term.
8. CONTINGENCIES AND COMMITMENTS
Contingencies
A letters of comfort issued on behalf of the client for opening letter of credit amounting to Rs 50 million against lease disbursement.
Commitments
Finance lease contracts committed but not executed at the balance sheet date amounted to Rs. 300 million.
Half Yearly December 2015 SINDH EL ASINGHalf Yearly December 2015 SINDH EL ASING
Notes to the Condensed Interim Financial Information (Un-audited)
1. LEGAL STATUS AND NATURE OF BUSINESS
Sindh Leasing Company Limited (the Company) was incorporated in Pakistan on December 16, 2013 as an unlisted public Company under the Companies Ordinance, 1984. The Company was granted licence on March 27, 2014 to carry out leasing business as a Non-Banking Finance Company (NBFC) under the Non-Banking Finance Companies (Established and Regulations) Rules, 2003. The
rd registered office of the Company is situated at 3 Floor, Imperial Court building, Dr. Ziauddin Ahmad Road, Karachi.
100% shares of the Company are held by the Government of Sindh.
JCR-VIS Credit Rating Company Limited (JCR-VIS) has assigned ‘A’ and ‘A-2’ ratings to the Company for medium to long term and short term respectively on April 28, 2015.
2. BASIS OF PREPARATION
2.1 Statement of Compliance
These condensed interim financial information have been prepared in accordance with approved accounting standards as applicable in Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standard Board as are notified under the Companies Ordinance, 1984, provisions of and directives issued under the Companies Ordinance, 1984, and Non-Banking Finance Companies and Notified Entities Regulations, 2008 (NBFC Regulations). In case requirements differ, provision or directives of the Companies Ordinance, 1984, and Non Banking Finance Companies and Notified Entities Regulations, 2008 shall prevail.
2.2 Basis of Measurement
These condensed interim financial information have been prepared under the historical cost convention.
2.3 Functional and presentation currency
These Condensed interim financial information are presented in Pak Rupees, which is the functional and presentation currency of the Company and rounded off to the nearest rupee.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies adopted in the preparation of these condensed interim financial information are the same as those applied in the preparation of the annual audited financial statements of the company for the year ended June 30, 2015.
10
For the six months period ended December 31, 2015
NOTE Dec 31, 2015 June 30, 2015
4. NET INVESTMENT IN FINANCE LEASES
Lease rentals receivable 714,453,142 465,589,270
Add: Residual value of leased assets 110,775,310 70,250,138
Gross investment in finance leases 825,228,452 535,839,408
Less: Unearned finance lease income (129,223,154) (91,653,385)
Net investment in finance leases 696,005,298 444,186,023
Less: Current maturity of net investment in finance leases 6 (150,027,032) (83,326,954)
Less: Provision for finance leases (5,962,421) (3,806,000)540,015,845 357,053,069
------------- Rupees -------------
Notes to the Condensed Interim Financial Information (Un-audited)
11
For the six months period ended December 31, 2015
5. SHORT TERM INVESTMENTS Dec 31, 2015 June 30, 2015
5.1 Held to Maturity
- Placement 200,000,000 -
- Certificate of Investment (COI)50,000,000 100,000,000
Term deposit reciepts
- Bank Islami Limited135,000,000 -
- United Bank Limited- 100,000,000
385,000,000 200,000,000
5.2 157,153,799 147,669,705
542,153,799 347,669,705
At fair value through profit and loss units of open ended mutual funds
---------------Rupees--------------
5.1 These represent short term Placement with Pak Brunei Investment Co. Ltd. @ 7.20% and COI with PIAR Investment Co. Ltd. @ 6.80%.
5.2 Units of Open ended Mutual Funds
Mutual Funds Number of
Units Dec 31, 2015 June 30, 2015 Dec 31, 2015 June 30, 2015 Dec 31, 2015 June 30, 2015
NIT- Government Bond Fund
9,649,059 - 109,059,636 - 97,669,705 - (11,389,931)
ABL- Government Securities Fund B
NIL (June 2015: 4,983,852) - 50,000,000 - 50,000,000 - -
NAFA - Income Opportunity Fund
14,102,352 (June 2015: Nil) 148,531,139 - 157,153,799 - -
148,531,139 159,059,636 157,153,799 147,669,705 (11,389,931)
----------------------------------------------------(Rupees)----------------------------------------------------
Cost Net Asset Value (NAV) Surplus / (deficit)
8,622,6608,622,660
Dec 31, 2015 June 30, 2015
6. CURRENT MATURITY OF NON CURRENT ASSETS
150,027,032 83,326,954
2,977,791 2,371,841153,004,823 85,698,795
7. LONG TERM SECURITY DEPOSIT AGAINST LEASE 110,775,310 70,250,138
Net investment in finance leases
Long term loans and advances
--------------- Rupees --------------
These represent deposits received from lessee against finance lease and are adjustable against the residual value of the asset leased at the expiry of respective lease term.
8. CONTINGENCIES AND COMMITMENTS
Contingencies
A letters of comfort issued on behalf of the client for opening letter of credit amounting to Rs 50 million against lease disbursement.
Commitments
Finance lease contracts committed but not executed at the balance sheet date amounted to Rs. 300 million.
Half Yearly December 2015 SINDH EL ASING
10. RELATED PARTY TRANSACTIONS
The Company has a related party relationship with its Associated Company, staff retirement funds and key management personnel.
The details of significant related party transactions and balances as at December 31, 2015 are as follows:
Notes to the Condensed Interim Financial Information (Un-audited)
12
For the six months period ended December 31, 2015
Dec 31, 2015 Dec 31, 2014
9. ADMINISTRATIVE AND OPERATING EXPENSES
Salaries and benefits 18,158,779 12,541,936
Conveyance & Travelling 1,287,985 1,247,283Insurance Expenses 1,115,129 211,221
Repair & Maintenance 405,304 322,805Depreciation 3,059,754 2,550,130
Postage & Communication 377,338 198,261
Advertising, Printing & Stationary 368,145 470,305Director's meeting Fees 300,000 210,000
Legal, subscription and professional charges 1,097,718 641,911Rent, rates, electricity & taxes 3,444,555 2,196,804
Auditor Remuneration 304,557 68,750Security Expenses 292,809 335,787
Other operating expenses 321,817 253,70630,533,890 21,248,899
----------------Rupees---------------
Associated
Company
Other related
party
Key management
personnel
Directors
TRANSACTIONS DURING THE PERIOD
Profit on Daily product account 3,547,544 - - -
Remuneration paid - - 5,243,598 -
Retirement benefits - - 1,063,943 -
Directors' meeting fees - - - 300,000
Transactions with Sindh Insurance Company Limited - 223,702 - -
Rent paid to Sindh Bank Limited 1,200,000 - - -
BALANCES
Daily product account 84,461,688 - - -
Funds Placed by Government of Sindh - 250,000,000 - -
TRANSACTIONS DURING THE PERIOD
Profit on Term Deposit 44,630,136
Profit on Daily product account 2,804,115 - - -
Remuneration paid - - 8,080,554 -
Retirement benefits - - 569,918 -
Directors' meeting fees - - - 210,000
BALANCES
Daily product account 391,489,464 - - -
--------------For the six months period ended Dec 31, 2014 ------------
------------------------------As at June 30, 2015 -----------------------------
--------------For the six months period ended Dec 31, 2015 ------------
------------------------------As at December 31, 2015 --------------------------
___________ ___________________Chairman Chief Executive
11. DATE OF AUTHORIZATION FOR ISSUE
These condensed interim financial information were authorized for issue by the Board of directors on January 19, 2016.
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