Saudi Pak Leasing : Transmission of Quarterly Report for the Period Ended 2024-03-31

MARCH 31	SAUDI PAK
2 0 2 4
	L E A S I N G

3rd Quaterly Report

OUR VISION

To remain trust worthy to all stakeholders.

OUR MISSION

For our Customer

We will exert to add value for our all stakeholders by offering

them win-win solutions.

For Employees

We will provide our employees opportunities for self development

in healthy and result oriented friendly environment.

For our Shareholders

We will endeavor to restore the confidence of our shareholders by optimum utilization of our limited resources.

For our Society

We will maintain ethical standards and act as responsible

corporate citizens.

CORPORATE STRATEGY

The company is optimistic to honor its commitments to

stakeholders despite difficult business conditions and serve liquidity

crunch being faced due to default of debtors.

Third Quarterly Report March 31, 2024

TABLE OF CONTENTS

Corporate Information	02
Director's Review	03
Statement of Financial Position	04
Statement Of Profit and Loss	05
Statement of Comprehensive Income	06
Statement of Changes In Equity	07
Statement of Cash Flow	08
Notes To The Financial Statement	09

01

Third Quarterly Report March 31, 2024

Corporate Information

BOARD OF DIRECTORS
Mr. Syed Najmul Hasnain Kazmi	Chairman/Non-Execu�ve/
	Independent Director
Mr. Niaz Ahmed Khan	Chief Execu�ve Officer/
	Independent Elected Director
Mr. Muhammad Waqar	Independent Director
Mr. Muhammad Naeem Khan	Independent Director

AUDIT COMMITTEE

Mr. Muhammad Waqar	Chairman
Mr. Syed Najmul Hasnain Kazmi	Member
Mr. Muhammad Naeem Khan	Member
HR & REMUNERATION COMMITTEE
Mr. Muhammad Naeem Khan	Chairman
Mr. Niaz Ahmed Khan	Member
Mr. Muhammad Waqar	Member

CHIEF EXECUTIVE OFFICER / Managing Director

Mr. Niaz Ahmed Khan

COMPANY SECRETARY

Mr. Muhammad Im�az Ali

CHIEF FINANCIAL OFFICER

Mr. Muhammad Zahoor

HEAD OF INTERNAL AUDIT & COMPLIANCE

Mr. Haider Ali Khan

TAX CONSULTANT

M/s. UHY Hassan Naeem & Co

Chartered Accountants

AUDITORS

M/s. UHY Hassan Naeem & Co

Chartered Accountant

(appointed on 28-10-2021)

A member of UHY Interna�onal Independent Member

LEGAL ADVISOR

1)M/s. S&B Durrani Law Associates, House No. 5-A/11/11, Sunset Lane,DHA,

Phase - II (Ext.), Karachi

2)M/s. Zafar & Zafar Law Associates, Zafar Co�age, 25, Mason Road, Lahore

BANKS

MCB Bank Limited

Faysal Bank Limited

Samba Bank Limited

REGISTERED OFFICE

6TH Floor, Lakson Square Building # 1

Sarwar Shaheed Road, Saddar,

Karchi-74200

Tel: [phone]

Fax: [phone]

BRANCH

Office 337/338, 4th Floor,

JEFF HEIGHTS

Main Boulevard, Gulberg-III, Lahore Ph : 042 3576 4964 - 65 (Relocated in 2018)

CONTACT DETAILS

Website: www.saudipakleasing.com

Email : [e-mail]

REGISTRAR AND SHARE TRANSFER OFFICE

Central Depository Company of Pakistan

Limited

CDC House, 99-B, Block - B

1. M. C. H. S., Main Shahrah-e-Faisal, Karachi Tel: [phone]
   Fax: [phone]

02

Third Quarterly Report March 31, 2024

Directors' Review

The Directors of Saudi Pak Leasing Company Limited are pleased to present the Condensed Interim Financial Information (unaudited) of the Company for the nine months period ended March 31, 2024.

Operating and Financial Results		March		March
	31,2024		31,2023
				Rupees
Income from finance and operating leases	61,818,118		63,377,430
Other operating income	111,195,256		4,645,822
Total income	173,013,374		68,023,252
Finance cost	(36,061,741)	(33,183,079)
Administrative and other operating expenses	(30,786,907)	(32,383,966)
Write-offs against loans and leases	-		-
Operating (loss) / profit before provisions	106,164,726	2,456,208
Reversal / (provision) against leases, loans,
receivables and investment properties	21,819,004		5,360,170
(Loss) / Profit before taxation	127,983,730		7,816,378
Taxation-Current	(2,855,989)	(994,024)
Taxation-Deferred	0		6,329,573
(Loss) / Profit after taxation	125,127,832		14,051,927
(Loss) / Earnings per share - basic	2.77		0.31

The total income for the nine-month period ending March 31, 2024, showed a substantial increase of 154.30% compared to the same period in 2023. The operating profit before provisions reached Rs 106,165 million, a significant rise from Rs 2.456 million in 2023.

The company continues to face challenges due to non-performing loans/leases and liquidity constraints. Notably, no new leasing business has commenced since 2008, and the company's license has been revoked.

Our focus has been on enhancing recoveries through settlements and salvaging investments. The company has pursued legal action, resulting in 85 decreed cases in its favor, totaling Rs 738.42 million. Management is actively engaging in out-of-court settlements for these decreed cases.

Despite these challenges, the company has managed to substantially reduce its book size and maintain operations using minimal internal resources and a reduced workforce. Intensive efforts are underway to negotiate the settlement of our loan portfolio and other liabilities, aiming for remissions and write-offs to mitigate negative equity and accumulated losses. The negative equity has decreased from Rs 573.576 million to Rs 445.742 million during the reported period. Anticipated future settlements are expected to further enhance the financial health of the company.

The company is committed to adhering to its Board-approved rehabilitation plan to meet the Minimum Equity Requirement (MER).

For and on behalf of the Board

Niaz Ahmed Khan

CEO & Managing Director

Karachi: 23 April 2024

03

Third Quarterly Report March 31, 2024

Statement of Financial Position (Un-audited)

			March 31,	June 30,
		2024				2023
			Rupees	Rupees
ASSETS	Note		(Un-audited)	(Audited)
			(Rupees)
Current assets
Cash and bank balances	5
92,759,131			27,576,426
Short term loans	6	75,800,300			120,530,176
Short term investments	7	30,715,004			49,936,112
Trade deposits and short term prepayments		1,460,848			1,061,280
Other receivables	8	18,769,426			27,194,559
Current maturity of non-current assets	9	393,677,811			464,280,605
Taxation - net		3,454,467			3,354,569
Total current assets		616,638,987			693,933,727

Non-current assets

Long-term loans	10
Net investment in finance leases	11
Investment properties	12
Property, plant and equipment	13
Total non-current assets
Total Assets
LIABILITIES
Current liabilities
Borrowings from financial institutions	14
Certificates of investment	15
Accrued mark-up	16
Accrued expenses and other payables	17
Current maturity of non-current liabilities	18

Unclaimed dividend

Total current liabilities

Non-current liabilities

-

-

36,731,910

81,557,965

118,289,875

734,928,862

137,500,000

43,000,000

514,688,185

6,440,072

477,382,127

1,661,291

1,180,671,675

-

-

38,043,307

79,607,042

117,650,349

811,584,076

162,801,588

43,000,000

557,461,484

7,455,769

607,638,797

1,661,291

1,380,018,929

Certificates of investment
Deferred tax liability - net
Long term finances	19
Security Deposits against Finance Leases	20

Total non-current liabilities

Total liabilities

NET ASSETS

FINANCED BY Authorized Share Capital

100,000,000 (June 30, 2023: 100,000,000) ordinary shares of Rs. 10/-each

100,000,000 (June 30, 2023: 100,000,000) preference shares of Rs. 10/-each

Issued, subscribed and paid-up share capital - ordinary shares Issued, subscribed and paid-up share capital - preference shares Statutory reserves

Accumulated loss

Surplus on revaluation of property, plant and equipment - net of tax21 Unrealised gain/(loss) on re-measurement as at fair value through

other comprehensive income

Accumulated actuarial (loss) / gain on defined benefit plan-net of tax

CONTINGENCIES AND COMMITMENTS

22

The annexed notes from 1 to 33 form an integral part of this condensed interim financial information.

-

-

-

-

-

1,180,671,675

(445,748,813)

1,000,000,000

1,000,000,000

2,000,000,000

451,605,000

528,208,500

179,549,025

(1,678,004,476)

43,479,823

30,418,981

(999,666)

(445,742,813)

-

-

-

-

-

1,380,018,929

(568,434,853)

1,000,000,000

1,000,000,000

2,000,000,000

451,605,000

528,208,500

179,549,025

(1,804,651,714)

44,999,229

32,854,773

(999,666)

(568,434,853)

___________________	___________________	___________________
Chief Executive	Director	Chief Financial Officer

04

Third Quarterly Report March 31, 2024

Condensed Interim Profit and Loss Account (Un-audited) For the period ended March 31, 2024

			Nine Months period ended			Three months period ended
			March 31,			March 31,				March 31,		March 31,
		2024	2023			2024	2023
Revenue	Note		-------------------------- (Rupees) --------------------------
Income from:									92,962
Finance leases	23	61,818,118	63,377,430		55,908,921
Other operating income	25	111,195,256	4,645,822		39,935,158	(2,206,634)
TOTAL INCOME		173,013,374			68,023,252				40,028,120		53,702,287

Expenses

Finance cost	26
Administrative and operating expenses	27

Operating Profit / (Loss) before provisions

Reversals / (Provisions) for doubtful

Profit / (Loss) before taxation

Taxation

• Current
• Deferred

Profit / (Loss) for the period

Earnings / (Loss) per share - basic

30

(36,061,741)

(30,786,907)

(66,848,648)

106,164,726

21,819,004

127,983,730

(2,855,898)

-

(2,855,898)

125,127,832

2.77

(33,183,079)

(32,383,966)

(65,567,045)

2,456,208

5,360,170

7,816,378

(94,024)

6,329,573

6,235,549

14,051,927

0.31

(11,355,313)	10,227,859
(9,326,628)	10,989,695
(20,681,941)	21,217,554
19,346,179	32,484,733

• 995,886

19,346,179	33,480,619
	(1,247,771)	(94,094)
		-
(1,247,771)	(94,094)
	18,098,408	(33,386,525)
	0.40	0.74

The annexed notes form an integral part of this condensed interim financial information.

___________________	___________________	___________________
Chief Executive	Director	Chief Financial Officer

05

Third Quarterly Report March 31, 2024

Statement of Comprehensive Income (Un-audited)

For the period ended March 31, 2024

		Nine months period ended		Three months period ended
		March 31,			March 31,
	2024	2023			2024	2023
	---------------------- (Rupees) ----------------------
Profit / (Loss) after taxation	125,127,832	(14,051,927)		18,098,408	33,386,595
Other comprehensive income
Re-measurement of investments - FVTOCI	(1,519,406)	8,243,675		(1,012,940)	8,243,675
Surplus recognized on revaluation of office premises	123,608,426	21,826,114		17,085,468	-
Deferred tax on above surplus	-	(6,329,573)		-	-
	-	15,496,541		-	-
Total comprehensive income for the year	123,608,425		37,792,142		17,085,468		41,630,270

The annexed notes from an integral part of this condensed interim financial information.

___________________	___________________	___________________
Chief Executive	Director	Chief Financial Officer

06

Chief
Executive
	Subscribed and paid-up share capital			Reserves
		Ordinary	Non-redeemable	Statutory	Re-measurement	Accumulated		Accumulated	Revaluation
		of	actuarial gain /		Surplus	Total
		Shares	Preference shares	reserves	investment		loss
		loss		PPE
					FVTOCI
	-----------------------------------------------------------------------				Rupees ----------------------------------------------------------------------------------

07

Director

Chief Financial Officer

Balance as at July 1, 2022	451,605,000	528,208,500	179,549,025		19,995,654	(999,666)	(1,821,135,601)	31,228,670	(611,548,418)
Loss for the period			-	-	-		-	-	14,051,927	-	14,051,927
Transfer from surplus on account of	incremental depreciation		-	-	-		-	-
- net of deferred tax				653,059	(653,059)	-
Unrealized loss on remeasurement of available		-	-	-			-	-	15,496,541
for sale investments				(3,376)	(15,493,165)
			-	-	-		(3,376)	-	14,704,986	14,843,482	29,545,092
Balance as at December 31, 2022			451,605,000	528,208,500	179,549,025		19,992,278	(999,666)	(1,806,430,615)	46,072,152	(582,003,326)
Balance as at July 1, 2023	451,605,000	528,208,500	179,549,025		44,999,229	(999,666)	(1,804,651,714)	32,854,773	(568,434,853)
Profit for the period
		-	-	-		-	-	125,127,832	-	125,127,832
Transfer from surplus on account of incremental depreciation
- net of deferred tax			-	-	-		(1,519,406)	-	1,519,406	(2,435,792)	(2,435,792)
			-	-		-	(1,519,406)	-	126,647,238	(2,435,792)	122,692,040
Balance as at 31 March 2024			451,605,000	528,208,500	179,549,025		43,479,832	(999,666)	(1,678,004,476)	30,418,981	(445,742,813)

The annexed notes form an integral part of this condensed interim financial information.

_________________________________________________________

Third Quarterly Report March 31, 2024

Condensed Interim Cash Flow Statement (Un-audited) For the period ended March 31, 2024

Note

Quarter ended

March 31,	March 31,
2024	2023

---------- (Rupees) ----------

CASH FLOWS FROM OPERATING ACTIVITIES	28
Finance cost paid
Taxes paid
Interest receivable from Govt. Securities - T-Bills
Decrease in net investment in finance leases

Net cash flows from operating activities

CASH FLOW FROM INVESTING ACTIVITIES

Acquisition of property, plant and equipment

Short term investments - net

Interest Income Received / Others

Dividend received

Net cash (used in) / from investing activities

CASH FLOW FROM FINANCING ACTIVITIES

Loan form Financial Institutions

Term Finance Certificates

Certificates of Investment

Net cash used in financing activities

Net decrease in cash and cash equivalents during the period

Cash and cash equivalents at beginning of the period

Cash and cash equivalents at end of the period

59,675,927

(32,104)

(2,855,898)

-

108,377,496

111,201,290

170,859,217

(5,242,100)

19,219,108

13,507,123

7,528,341

35,012,472

(95,061,505)

(1,627,478)

(44,000,000)

(140,688,983)

65,182,706

27,576,426

92,759,131

41,569,042

(28,384)

(478,148)

29,267

37,247,488

36,770,222

78,339,264

(659,200)

10,558,684

-

7,424

9,906,908

(61,999,999)

-

-

(61,999,999)

26,246,173

253,806

26,499,979

The annexed notes form an integral part of this condensed interim financial information.

___________________	___________________	___________________
Chief Executive	Director	Chief Financial Officer

8