2012

ASSIGNMENT NO 1
Leasing & insurance finance
L

SUBMITTED BY: KANIZ FATIMA L1F08BBAM2100 MADIHA MALIK L1F08BBAM0167 ASBAH SHUJAAT L1F08BBAM2144 ABDUL REHMAN GABA L1F08BBAM2012 AROOBA RAZI L1F08BBAM2011 SUBMITTED TO: PROF. TEHSEEN DATED: 7-03-2012 SECTION: A

INTRO TO LEASING SECTOR:

The brief description of the overall size of leasing sector in Pakistan and its performance over the last five years:

Trends of Aggregate Indicators:

The trend of industry's aggregate indicators for the last five years are given below:

Leasing Companies
(All figures are in Million) 1996 1997 1998 30 33 33 3,898 4,234 4,352 2,746 3,234 3,359 21,892 25,164 28,111 1,768 2,590 2,724 18,432 21,603 23,173 4,090 5,046 5,315 922 906 610 2,758 3,006 3,293 926 959 1,198 165 155 293 537 399 340 1999 32 4,566 3,305 29,039 2,664 23,765 5,528 451 3,634 1,294 149 371 2000 32 4,762 3,441 30,281 3,162 25,740 5,704 573 3,709 1,368 151 409

No. of Companies Paid up capital Retained Earning Investment in Lease Finance Investments Borrowings Revenues Net Profit Financial Charges Operating Expenditure Taxation Cash Dividend

The number of companies and the paid up capital are the industries input parameters whereas revenues, profits, financial charges and investments are the output parameters indicating the extent of the benefits provided by the industry to the lessees, shareholders, banks etc. The paid up capital has increased from Rs. 3.8 billion in 1996 to Rs. 4.7 billion in 2000, showing an increase of around 24% over the five-year period. Amongst the output parameters investment in Lease Finance increased from Rs.21 billion in 1996 to Rs.30 billion in 2000, maintaining its increasing trend in the five-year period and showing an overall increase of 43%.

GRAYS LEASING LIMITED

Grays Leasing Limited (GLL) was incorporated in Pakistan in August 1995 as a public limited company and commenced operations in February 1997. GLL is listed on Karachi and Lahore Stock Exchange of Pakistan

Companys Vision:
To be one of the most progressive institutions in the financial sector by providing quality service to our clientele in a superior manner, maintaining high ethical and professional standards, striving for continuous improvements and consistent growth to add value to our shareholders and our team of conscientious employees and a fair contribution to the national economy.

Companys Mission:
To develop a client base representing all segments of the economy; emphasis is placed on financial support to medium and small enterprises for their expansion, balancing and modernization requirements.

TOTAL ASSTES FOR 30 JUNE,2011:

According to annual report of grays leasing company, the total value of their assets are equal to Rupees three hundred eighty-eight million eighty-six thousand six hundred sixteen.

CAPITAL EQUITY FOR 30 JUNE,2011:

The total capital equity is Rupees seventy-five million four hundred thirty-two thousand nine hundred sixty-eight.

PROFIT/LOSS FOR 30 JUNE,2011:

In the end of year 2011, Grays leasing company came across with the loss of Rupees fortyfour million one hundred seventy thousand one hundred seventy-two.

ORIX LEASING LIMITED

ORIX Leasing Pakistan Limited was established in 1986 as Orient Leasing (Pvt) Limited, a subsidiary of Orient Leasing Company Limited, Japans largest leasing conglomerate. It was converted into a public limited company in December 1987. In December 1989, the Companys name was changed to ORIX Leasing Pakistan Limited in line with the change in name of its Parent company to ORIX Corporation. The Company is listed on all three stock exchanges in Pakistan. OLP completed its 25 years in Pakistan in the year 2011.

Companys Vision:
ORIX aims to maximize shareholder value by drawing on its extensive array of specialized capabilities to continuously provide our customers with value added financial solutions.

Companys Mission:
ORIX seeks its development through domestic and international presence by constantly anticipating and monitoring emerging trends and offering new and innovative products that create real and lasting value for our customers. ORIX pioneers, introduces and offers value-added products which are not only competitive in terms of desirability and price, but also fulfill the needs of our customers by consistently increasing our value to them as an efficient source of financial services. ORIX makes all efforts in enhancing superior professional competencies by creating a culture that fosters openness and innovation, promotes individual growth and at the same time rewards initiative and performance. ORIX contributes to society through participation in poverty alleviation programs, provision of financial assistance at grass roots level and assistance to charitable causes.

Companys Introduction:
Company has expanded beyond the borders and established leasing companies outside Pakistan in Middle East, North Africa and Central Asia. OLP has deputed 34 OLP staff members including Managing Directors to manage the operations of OLP associated companies. OLP enjoys the highest credit rating in the leasing industry and has been assigned long term rating of AA (Double A) and short term rating of A1plus (A One plus). These ratings denote the lowest expectation of credit risk emanating from a strong capacity for timely repayment of financial commitments. In 1986, paid up of capital of the Company was Rs. 10 million, today shareholders equity of the Company is Rs. 2.2 billion. Company started modestly in a small office with a staff of 14 and the company today stands as a leader in the leasing industry with staff strength of over 450 and over 30 offices across the Country. OLP has played a crucial role in providing finance to Small and Medium Sized Enterprises (SMEs) that constitute over 80% of the total businesses in the country and till date provided finance worth around Rs. 100 billion predominantly to the SMEs with a fairly good recovery ratio. Committed to its shareholders, OLP has paid dividends for 19 years in the range of 10% to 45%.The Companys strength has been widely recognized and is the recipient of Corporate excellence award and certificates from Management Association of Pakistan. The Companys former Chief Executive, Mr. Humayun Murad, was awarded Sitara-eImtiaz by the Government of Pakistan for services to the SME sector.

TOTAL ASSETS FOR 30 JUNE,2011:

According to annual report of ORIX leasing company, the total value of their assets are equal to Rs 21,802,218,136.

TOTAL CAPITAL EQUITY FOR 30 JUNE, 2011

The total equity of its 2011 is Rs 2,247,699,084.

PROFIT/LOSS FOR 30 JUNE, 2011:

The profit ORIX earned in 2011 is Rs. 144,672,501.

In the end of year 2011, ORIX leasing company total comprehensive income is Rs. 144,330,144.

Security leasing corporation limited

SLCL was incorporated on December 6, 1993 under the Companies Ordinance 1984, and commenced commercial operations on May 21, 1995 immediately after receiving the license to carry on leasing business and the Certificate to Commence Business. The Company is listed on Karachi, Lahore Stock Exchange (Guarantee) Limited with a paid-up capital of PKR 363 million.

Companys Mission:
SLCL is committed to make a positive contribution towards the country's economy by achieving a leading position in the leasing industry. SLCL intends to achieve its mission by: Enhancing value for its shareholders and lenders. Providing efficient and professional services to its customers based on the latest technology. Developing an efficient and professionally trained human resource. Following good and ethical business practices. SLCL was incorporated in December 1993 and commenced its operations with effect from May 21, 1995. SLCL is one of the 15th largest leasing companies in Pakistan.

Companys Vision:
SLCL has an infrastructure which can cater to substantial business as such SLCL is well poised to avail opportunities which will be available due to an upsurge in the economy. The future of the leasing sector is linked to the macro-economic performance of the country's economy. New projects and Investment in Balancing, Modernization & Replacement (BMR) tender more opportunities to generate more business for the leasing sector.

Companys Introduction:
The principle activity of the Company is leasing to both individual and corporate entities, which have a proven track record of timely repayments, good profitability and strong cash flows from their operations, thus insuring quality leases and clients. The company has made its new leasing business fully compliant to Shariah injunctions from November 2002. Besides leasing, the company also invests its funds in other profitable operations like investments in short term and long term debt and equity instruments. These investments not only support the company's core operations but also help in the utilizations of surplus funds when leasing demands are low. SLCL is amongst the top ten leasing companies in Pakistan. The Company actively seeks to play a positive and constructive role in the capital and fund markets in Pakistan and actively invites offshore funding both from private sources and multilateral agencies with the objective of expanding the fund base available for Pakistan's industrial and economics growth.

TOTAL ASSTES FOR 30 JUNE,2011:

According to annual report of security leasing corp. limited, the total values of their assets are equal to 1,836505,743.

TOTAL CAPITAL EQUITY FOR 30 JUNE,2011

The total equity of its 2011 is 131,833,205.

PROFIT/LOSS FOR 30 JUNE,2011:

The loss for year 2011 is 24,784,927.

Total comprehensive loss for 2011 is Rs 4,412,691.

Askari leasing limited

Companys Vision: We strive to be acknowledged emerging leader and preferred problem solver in helping our customers bridge the gap between desire and fulfillment. Companys profile: Askari Leasing Limited (ALL), a subsidiary of Army Welfare Trust (AWT), the name that spells growth, quality and commitment in Pakistan, is focused on underwriting quality lease business with a twofold objective of ensuring the safety of capital and maximizing the shareholder's return. ALL was incorporated on August 01, 1993 and went public on September 22, 1993 and the public issue was oversubscribed. The company received its commencement of business certificate in October 1993. ALL is listed on all the stock exchanges of the country.Pakistan Credit Rating Agency (PACRA), an associate of IBCA, UK has upgraded ALL's entity rating to "A Plus" long term and "A1" for short term obligations. Askari Leasing is contributing substantially in the economic activities of the country besides being a profitable concern of AWT. ALL remains alive to the changing business trends and keep adding new products to the existing line. To exploit a highly lucrative market segment in the country ALL has entered into consumer auto leasing product namely 'asKar'. It has received a highly encouraging response and till June 2001 has marketed over 7000 cars and disbursed over Rs. 4.0 billion.

Total asset for 31 March 2011

Assets March 31 2011 Rs in thousand 21,501,009 6,894,232 3,392,493 113,133,503 139,336,256 9,907,149 13,972,512 308,137,154

Cash and balances with treasury banks Balances with other banks endings to financial institutions Investments Advances Operating fixed assets Deferred tax assets Other assets

Bills payable Borrowings

3,173,616 23,464,128

Deposits and other accounts 249,758,043 Sub-ordinated loans 5,992,200 Liabilities against assets subject to finance lease Deferred tax liabilities - net 271,409 Other liabilities 8,864,025 291,523,421 Net Assets 16,613,733

According to annual report of ASKARI leasing company, the total value of their assets are equal to sixteen million six hundred and thirteen thousand seven hundred and thirty three hundred.

Total equity for 31 March

Represented By Share capital Reserves Inappropriate profit Surplus on revaluation of assets - net of tax 7,070,184 7,821,533 538,25 15,429,967 1,183,766 16,613,733

Total equity for year 2011 is equal to sixteen million six hundred and thirteen thousand seven hundred and thirty three hundred.

PROFIT/LOSS FOR 31 March, 2011:

The financial results of the quarter are summarized as under: Profit before tax Taxation Profit after tax Basic / diluted earnings per share - Rs 815,091 (276,841) 538,250 0.76

During the quarter ended March 31, 2011, your Bank's operating profit i.e., profit before provisions against non-performing loans and investments, stood at Rs.1,357 million registering a healthy growth of 49.6% over the corresponding period last year.

INCOME STATEMENT

For the quarter ended March 31, 2011

Profit after taxation Other comprehensive income Effect of rescheduled / restructured classified advances Effect of translation of net investment in wholesale bank branch Total comprehensive income

538,250 71,692 (553) 609,389

Askari leasing total income for 31 march 2011 is six hundred nine thousand and three hundred and eighty nine rupees and total profit after taxation is five hundred thirty eight thousand two hundred and fifty rupees. This is mainly attributable to a 47.5% increase in net mark-up / interest income on the back of a 14.8% growth in total asset base as on March 31, 2011 compared with corresponding period last year. The aggregate non-fund income recorded adverse variance of 23.8% mainly due to decline in capital market activity and lesser opportunities for arbitrage. The increase in administrative expenses reflects inflationary upsurge and, additional expenses due to expansion of branch network that reached 235 from 227 as on March 31, 2010.

Pak Gulf Leasing

Companys mission:
The Company Will:

Aim to gain the confidence of all its stakeholders by earning a credible reputation for being an innovative enterprise that is prepared to change in the best interests of its stakeholders. Continually monitor structural changes in the various sectors of the economy and accordingly alter the Company's business strategy to benefit from the emerging opportunities. Focus on changing customer needs and strive to improve tangible and intengible returns to its customers by providing service and satisfaction at par with the best in the industry, which would be feflected in prompt risk evaluation and facility disbursement procedures and practices. Consciously share, and remain part of all initiatives by the leasing industry to play a positive role in the evolution of small and medium size enterprises to expand the country's industrial base and support economic growth, higher employment, and a better future for all.

Companys Profile:
The Company commenced operation in September 1996. Over the years, PGL has built a strong customer base, in addition to a reputation for being a provider of competitive services, of a high quality, to its expanding client base. Its net investment in leases is represented by facilities extended to industrial and commercial enterprises, besides individual consumers.

TOTAL ASSETS FOR 30 JUNE,2011:

According to annual report of sigma leasing corp. limited, the total values of their assets are equal to Rs 73,977,505.

TOTAL CAPITAL EQUITY FOR 30 JUNE,2011

. According to annual report of sigma leasing corp. limited, the total values of their equity are equal to Rs 253,698,000.

PROFIT/LOSS FOR 30 JUNE,2011:

According to annual report of sigma leasing corp. limited, the total values of their profit are equal to Rs 110,556,883.

INCOME STATEMENT

Total comprehensive Income for 2011 is Rs 64,474,169.

Companys Mission:
To create exceptional value for our clients, investors and staff; through market leadership in providing innovative Leasing Products and Solutions, and by adopting and living our core values.

Companys profile:
Standard Chartered Leasing Ltd., a subsidiary of Standard Chartered Bank (Pakistan) Limited, has been in the forefront of the leasing business since 1993. Standard Chartered Leasing Limited has maintained its unique market position. It caters to the customers leasing need through customized lease products which are cost effective and simple. Standard Chartered Leasing core business is lease financing with a focus on corporate, small and medium enterprises. It also offers unique investment opportunities to Individual and Corporate / SME customers through certificate of investments. Standard Chartered Leasing is an investment grade company with existing PACRA credit ratings of AA for long term and A1+ for short term. These ratings indicate low expectation of credit risk emanating from very strong capacity for timely payment of financial commitments We operate in the major cities of Pakistan including: Lahore, Islamabad, Faisalabad along with its registered office in Karachi. Standard Chartered Leasing is also listed on all the three Stock Exchanges in Pakistan. Standard Chartered Leasing Ltd is 86.50% owned by Standard Chartered Bank (Pakistan) Ltd. Standard Chartered Leasings existing paid up capital is PKR 978 million which meets the minimum capital requirement set by the Securities and Exchange Commission of Pakistan (SECP). The authorized capital of SCLL is PKR. 1 billion, whereas the paid up capital is PKR 978 million. This meets the minimum capital requirement of the Securities and Exchange Commission of Pakistan (SECP).

TOTAL ASSETS FOR 30 JUNE,2011:

According to annual report of Standard chartered leasing , the total values of their assets are equal to Rs 3,263,884,996.

TOTAL CAPITAL EQUITY FOR 30 JUNE,2011

According to annual report of Standard chartered leasing, the total values of their equity are equal to Rs 851,121,330.

PROFIT/LOSS FOR 30 JUNE,2011:

According to annual report of Standard chartered leasing, the total values of their profit are equal to Rs 76,274,206.

INCOME STATEMENT

According to annual report of Standard chartered leasing, the total values of their comprehensive income are equal to Rs 76,269,999.