half yearly december 2015 - sindh leasing company ltd. · 11/7/2017 · mr. muhammad bilal sheikh...

Half Yearly December 2015 SINDH EL ASING

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

Vision & Mission Statements

Half Yearly December 2015 SINDH EL ASINGHalf Yearly December 2015 SINDH EL ASING

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.

Board of Directors

- Non-Executive Director

- 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

Rawalpindi BranchFirst Floor,K-583, Chaudary Maula dad Khan RoadMurree RoadRawalpindi Lahore BranchSecond Floor,Plot No.S-19 R-30Sharah-e-Quaid-e-AzamLahore

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.

Board of Directors

- Non-Executive Director

- 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

Rawalpindi BranchFirst Floor,K-583, Chaudary Maula dad Khan RoadMurree RoadRawalpindi Lahore BranchSecond Floor,Plot No.S-19 R-30Sharah-e-Quaid-e-AzamLahore

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.

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

53.1321.25

-31.8821.36

Balance Sheet(PKR Million)

Profit & Loss

Condensed Interim Balance Sheet (Un-audited)As at December 31, 2015

___________ ___________________Chairman Chief Executive

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

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

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.

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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.

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

53.1321.25

-31.8821.36

Balance Sheet(PKR Million)

Profit & Loss

Condensed Interim Balance Sheet (Un-audited)As at December 31, 2015

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

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

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

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Condensed Interim Profit and Loss Account (Un-audited)

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

For the six months period ended December 31, 2015

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Six months period ended

31 December 31 December

Condensed Interim Statement of Comprehensive Income (Un-audited)

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

Three months period ended

31 December

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31 December

Condensed Interim Profit and Loss Account (Un-audited)

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

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31 December 31 December

Condensed Interim Statement of Comprehensive Income (Un-audited)

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

Three months period ended

31 December

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31 December

Condensed Interim Cash Flow Statement (Un-audited)

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

Six months period ended 31 December

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Condensed Interim Statement Of Changes In Equity (Un-audited)

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

- - 15,519,903 15,519,903

Total comprehensive income for the six months period ended December 31, 2014

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Issued,

subscribed and paid-up share

capital Totalprofit

Un- appropriated Statutory

reserve

Reserves

Condensed Interim Cash Flow Statement (Un-audited)

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

Six months period ended 31 December

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Condensed Interim Statement Of Changes In Equity (Un-audited)

- - 21,358,187 21,358,187

- - 15,519,903 15,519,903

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Issued,

subscribed and paid-up share

capital Totalprofit

Un- appropriated Statutory

reserve

Reserves

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.

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

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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

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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)

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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

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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.

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.

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 -------------

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:

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

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 --------------------------

11. DATE OF AUTHORIZATION FOR ISSUE

These condensed interim financial information were authorized for issue by the Board of directors on January 19, 2016.

half yearly december 2015 - sindh leasing company ltd. · 11/7/2017 · mr. muhammad bilal sheikh...

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