Karachi: We have to inform you that the Board of Directors of our company in their meeting held on October 3, 2011 at 11:30 a.m. at Karachi recommended the following:
For Ordinary Shareholders
For Preference Shareholders
The copies of financial results and auditors’ report of the Company are attached. (See Annexure ‘A’ and Annexure ‘B’ respectively.
The Annual General Meeting of the Company will be held on October 25, 2011 at 10:00 a.m. at Block-B, 5th Floor, Lakson Square Building No.3, Sarwar Shaheed Road, Karachi.
The Share Transfer Books of the Company Will be closed from October 19, 2011 to October 26, 2011 (both days inclusive). Transfers received at the M/s. Noble Computer Services (Private) Limited, Mezzanine Floor, House of Habib Building, (Siddiqsons Tower), 3-Jinnah Corporative Housing Society, Main Shahrah-e-Faisal, Karachi at the close of business on October 18, 2011 will be treated in time for the purpose of above entitlement to the transferees.
The Financial results of the Company are as follows
|Other operating income||41,483,721||2,737,975|
|Impairment on investments||(625,000)||(49,673,715)|
|Administrative and selling||83,622,204||93,118,334|
|Direct cost of finance leases||1,947,710||2,859,779|
|Provision for potential lease and other losses||24,256,494||37,736,793|
|Loss before income tax||(13,899,437)||(291,909,663)|
|Income tax expense|
|Loss from continued operations||(25,850,243)||(278,470,477)|
|Profit from discontinued Operations||1,065,316||4,516,936|
|Loss for the year||(24,784,927)||(273,953,541)|
|Loss per share- basic and diluted||(0.68)||(7.55)|
Auditors’ Reports to the Members
We have audited the annexed balance sheet of Security Leasing Corporation Limited (“the Company”) as at June 30, 2011 and the related profit and loss account. Statement of comprehensive income cash flow statement and statement of changes equity together with the notes forming part thereof, for the year then ended and we state that we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
It is the responsibility of the company’s management to establish and maintain a system of internal control, and prepare the present the above said statements in conformity with the approved accounting standards and the requirements of the Companies Ordinance, 1984. Our responsibility is to express an opinion on these statements based on our audit.
We conducted our audit in accordance with the auditing standards as applicable in Pakistan. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the above said statements are free of any materials misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosure in the above said statements. An audit also includes assessing the accounting policies and significant estimates made by management, as well as, evaluating the overall presentation or the above said statements. We believe that our audit provides a reasonab1e basis for our opinion and, after due verification, we report that:
1. IAS 12- Income Taxes requires that a deferred tax asset shall be recognized for the carry forward of unused tax losses and unused tax credits to the extent that it is probable that future taxable profits or sufficient taxable temporary difference will be available against which the unused tax credits can be utilized. We have noted that the Company has recorded deferred tax asset aggregating to Rs 355 million representing excess of unused tax losses over the taxable temporary differences as at June 30, 2011 Management has recognized the deferred tax asset on the basis of future business plan of the Company which projects that future taxable profit would be available against which such deferred tax asset could be utilized.
However, there is a material uncertainty involved in the assumptions underlying these future business plans, as disclosed in Note 1.2, which are dependent on future events due to which there is a possibility that sufficient future taxable profits or sufficient taxable temporary differences may not be available against which the deferred tax assets can be utilized.
(a) In our opinion, proper books of account have been kept by the company as required by the Companies ordinance, 1984:
(b) In our Opinion:
(i)The balance sheet and profit and loss account together with the notes thereon have been drawn up in conformity with the Companies Ordinance, 1934, and are in agreement with the books of account and are further in accordance with accounting policies consistently applied:
(ii) The expenditure incurred during the year was for the purpose of the Company’s business; and
(iii) The business conducted, investments made and the expenditure Incurred during the year were in accordance with the objects of the Company:
(iv) In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter referred to in paragraph I above, the balance sheet, profit and loss account statement of comprehensive income cash flow statement and statement of changes in equity together with the notes forming part thereof, conform with approved accounting standards as applicable in Pakistan, and give the information required by the Companies Ordinance 1984, in the manner so required and give a true and fair view of the state of the Company’s affairs as at June 30, 2011 and of the loss, total comprehensive loss, is cash flows and Changes in equity For the year then ended, and
(d) In our opinion no zakat was deductable at source under the Zakat and Why Ordinance 1980 (XVIII of 1980)
We draw attention towards note 1.2 to the financial statement that discloses the adverse financial condition of the Company including renewal of license to operate as a leasing business. On the application by the Company the Securities and Exchange Commission of Pakistan has accorded 5pecial permission to the Company to continue working as leasing company till July, 2011 These condition along with other matters as fully explained in note 1.2, indicate the existence of materials uncertainly which may cast significant doubt about the Company’s ability to continue as a going concern Furthermore, as at June 30, 2011, the Company’s equity is Rs, 1.39.1 million. The Company is required to meet the minimum equity requirements of Rs.350 million, Rs. 500 million and. Rs.700 million by June 30, 2011, 2012 and 2O13 respectively. The license to work as NBFC expires on July. 2011 These financial statements do not include any adjustment that might result should the Company not be able to continue as a going concern.
Our opinion is not qualified in respect of above mentioned matter.
For more information, contact:
Mohammad Moin Khan
Security Leasing Corporation Limited
Lakson Square Building No.3,
Sarwar Shaheed Road,