al zamin leasing corporation

8/8/2019 Al Zamin Leasing Corporation

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Al Zamin Leasing Corporation

History of Leasing

Leasing is not a new phenomenon. The knights of the crusades in the

10th century were known to have paid for their armor by installments,

and such methods of payments have been traced back to the ancient

Summarians.

Leasing in its modern style has developed over the past 50 years to

provide a method of amortizing the capital value of any asset over its

expected life span. Traditionally this was for high value assets such as

buildings, ships, and aircraft, but increasingly smaller values have been

coming into the leasing range, such as vehicles and equipment

Over the centuries, leases have served many purposes and the nature of

legal regulation has varied according to those purposes and the social

and economic conditions of the times. Leases, for example, were mainly

used for agricultural purposes until the late 18th century and early 19th

century when the growth of cities in industrialized countries had made

leases an important form of landholding in urban areas.

The modern law of landlord and tenant in common law jurisdictions

retains the influence of the common law and, particularly, the laissez-

faire philosophy that dominated the law of contract and property law in

the 19th century. With the growth of consumerism, consumer protection

legislation recognized that common law principles, which assume equal

bargaining power between the contracting parties, create hardships when

that assumption is inaccurate. Consequently reformers have emphasized

the need to assess residential tenancy laws in terms of protection they

provide to tenants. Legislation to protect tenants is now common.

The first instances of leasing hark back to 2000 BC. Evidence points to

the Sumerians using leasing transactions in agriculture and in the

Financial Institution of Pakistan Page 1


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procurement of hand tools. In the ancient Rome, during the reign of

Justinian, for the first time, laws were enacted to regulate funding based

on leasing methods. Before the middle Ages, the rent of transportation

facilities, such as horses, carts and carriages, was among the principal

business activities and services. In the Mediaeval period, owing to the

limitations on the absolute ownership of goods, leasing became a

widespread method of funding in the field of real estate. In his diaries, the

first US President George Washington makes numerous references to

leasing activities.

In 1850, in England, the construction of railroad cars was carried out

based on lease agreements. The British Birmingham Wagon Company

was registered in 1855 as the first leasing company in the world.

The modern leasing industry began in 1952 with the establishment of the

United States Leasing in San Francisco, California, as an international

concern. In the years 1960 to 1962, leasing transactions were carried out

by Deutsche Leasing and Orient Leasing in Germany and Japan,

respectively. In the first half of the 1970s, leasing proliferated throughout

the world, including Iran.

The 1980s may be characterized as the decade of florescence and

internationalization of leasing. In this connection, the International

Finance Corporation (IFC), affiliated with the World Bank, has played a

major role in the establishment of leasing companies throughout the

world, with the founding in 1977 of Korea Leasing as its first successful

experience. The support provided by IFC resulted in the expansion of

leasing activities in numerous countries, including Bangladesh, Botswana,

Brazil, Columbia, the Dominican Republic, Ecuador, India, Indonesia,

Jordan, South Korea, Malawi, Pakistan, Peru, the Philippines, Portugal, Seri

Lanka, Thailand, Tunisia, Turkey, and the Commonwealth of Independent

States (CIS).



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History in Pakistan

The concept of leasing and hire purchase existed long before the first

leasing company, National Development Leasing Corporation Limited was

established in 1985. During 1985-1991 period only six companies were

established whereas during 1992-97, as many as, 27 leasing companies

entered the market. Some of the modaraba companies are involved in

leasing as their business. The leasing sector has registered consistent

and double digit growth except for the last few years. However, this

was mainly due to recessionary trend of the economy. The volume of

leases underwritten over the years has increased mainly due to the fact

that leasing companies have become the only source of medium-term

financing.

Initially leasing companies could start business with a capital of Rs 50

million. This limit was raised to Rs 100 million in 1992 and further

enhanced to Rs 200 million. Companies were required to increase the

capital to this level by November 1999. However, a large number of

companies failed to meet the deadline. All such companies have

requested the SECP to extend the deadline. The SECP was also requested

to consider shareholders' equity (capital and reserves) as the capital for

meeting this requirement.

At present 32 leasing and 8 modaraba companies are members of

Leasing Association of Pakistan. According to the information available

from the Karachi Stock Exchange, 29 leasing companies posted profit for

the year 1998-99 and 3 posted loss. Out of the profit making companies 9

companies did not declare profit.



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As such leasing companies can be divided into three categories, large

ticket, medium ticket and small ticket companies. While the five large

size companies manage to get the largest share of the business, some of

medium and small size companies have established their own niche

market. Such companies, despite being small post modest return on

equity.

While the sector continues to operate under intense competition the new

interpretation of old laws, particularly with regard to taxation, has

become a serious concern for the companies. It is true that the country

needs additional revenues to minimize budget deficit, but tax collectors

must refrain from issuing unrealistic demand notices. In this connection

the tax regime must read the explanatory note, regarding taxation, in the

latest annual report of Orix Leasing Pakistan.

National Development Leasing Corporation was established in 1984

as a joint venture between Asian Development Bank, International

Finance Corporation, National Development Finance Corporation and local

sponsors with a paid-up capital of Rs 20 million. As at June 30, 1999

shareholders' equity was over Rs 1.2 billion.

Orix Leasing Pakistan is a subsidiary of Orix Corporation Japan's

largest leasing company. It commenced business in January 1987. Orix

Leasing Pakistan serves as the regional base for the Orix Group's

operations in the Middle East. It has strategic investment in and manages

joint venture leasing companies in Oman and Egypt. Orix InvestmentBank Pakistan also has strategic investment from Orix Leasing Pakistan.

First Habib Modaraba was floated in 1985 as a multipurpose and

perpetual modaraba. It is involved in leasing as core business. Ever since

its inception, it has been regularly paying dividend to its certificate



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holders. It paid the second-highest dividend for the year 1998-99 among

the 52 listed modaraba companies.

Security Leasing Corporation commenced its operations in May 1995

and has a paid-up capital of Rs 100 million. Foreign institutional investors

are the majority shareholders in the Company. In addition to the leasing

operations, the Company's activities include money market/short-term

lending, capital market operations and project financing.

Sigma Leasing Corporation commenced its business in January 1997.

It has been sponsored mainly by Almurtaza Machinery Company theleading supplier of apparel and textile made-up machinery for the last 26

years. The main focus of the Company is to provide lease financing to

small and medium enterprises



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ALZAMIN LEASING CORPORATION

Introduction

Al-Zamin Leasing Corporation Limited (formerly Crescent Leasing

Corporation Limited) was incorporated in 1987 as a public limited

company. The Name of the company has been changed to Al-Zamin

Leasing Corporation Limited From Crescent Leasing Corporation Limited

with effect from February, 06 2008.

The prime business of the company is Leasing & Investment Finance

Services. The Company has equity of Rs.895 million which includes Rs.

250 million of subordinated loans given by the major shareholder of the

company as per Annual Report 2008. The Universal Leasing Corporation

Limited had been merged with and into Al-Zamin Leasing Corporation

Limited during the year 2007-08. The Company has eight branch offices

throughout in Pakistan which are providing various services to our

customers.



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Mission Statement

"To participate prominently in the economic and social development of

the country through a well-established and competitive credit delivery

system managed by a motivated and efficient human resource."

"Al-Zamin Lease is committed to pursuing the improvement in

shareholders value through development of a dedicated human resource

and efficient systems base capable of effectively participating in a

competitive business environment. Al-Zamin Lease would endeavor to

extend the reach of the credit delivery system to stimulate the economic

development"



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Management

Mr. Syed Shahnawaz Ahmed Rizvi

Mr. Syed Shahnawaz Ahmed Rizvi is the Chief Executive of Al-Zamin

Leasing Corporation Limited. He is a chartered accountant by profession

and has been working with CresLease since 1993. He has held

management positions with various professional firms. He joined Alzamin

Lease as Chief Accountant and later on was given the responsibility ofhandling operations.

Mr. Syed Shahid Owais

Mr. Syed Shahid Owais is the Company Secretary, and has been working

with Al-Zamin Lease for the last several years in the area of Audit. He has

vast experience in the field of Audit and Accounts. Before joining Alzamin

Lease, Mr. Owais has worked with different Institutions in the field of

Finance and Accounting. Recently he is also assigned the responsibilities

of Cheif Financial Officer (CFO).

Mr. Mehboob-ur-Rehman

Mr. Mehboob-ur-Rehman is the EVP - Operating Lease / Specialized

Projects of Al-Zamin Lease. He completed his MBA from the Institute of

Business Administration Karachi in 1992. He has been associated with

Alzamin Lease for the last ten years. He has also held the position of an

Associate Consultant in a reputed audit firm.

Mr. Abid Sagheer Farooqui

Mr. Abid joined the company in 1993, worked in accounts department

from 1993 to 2002. At present he is working as Head of Internal Audit.



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Mr. Abid Raza Zaidi

Mr. Abid is working as SVP - Treasury & Banking Relations. He is themember of Institute of Financial Consultant (Chartered in United States &

Canada) and has been serving the company since 2005.

Mr. Naeem Baig

Mr. Naeem Baig is working as SVP & Manager of Central Region of Al-

Zamin Lease. He is an MBA and serving the company since 2006. His

experience includes different responsibility at different organization of

financial sector.

Mr. Tahir A. Abbas

Mr. Tahir A.Abbas is working as VP & Manager Northern Region of Al-

Zamin Lease. He is an MBA and has been working with Alzamin Lease

since 2002. Previously he has worked as manger in a leasing company.

Mr. Syed Razi Aziz

Mr. Razi is working as VP - Credit Administration & Recovery and has vast

experience in banking & leasing industry.



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BODs

Board of Directors of Cres Lease comprise of seven members. The current

composition of the board is as under:



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Corporate Objectives

Improve relative positioning in top tier companies.

Transformation from a single product to multi-products company.

Offer a diversity of products tailored to customer in various

segments with a special focus on SMEs and consumer financing.

Extend market reach sectorally and geographically with quality of

service and portfolio.

Operate within the regulatory framework for NBFCs.


Mr. Zafar Iqbal

Mr. Basheer Ahmed Mr. Muhammad

Zahid Mr. Javeed A. Callea

Mr. Muhammad

Moiz ul Haque

Mr. Firasat Ali Mr. Syed Shanawaz


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Functions of Al Zamin LeasingBasically Al Zamin leasing corporation have two types of functions such as

Collection of money

Lending of money

A.Collection of Money

Al Zamin leasing corporation collect the money from general public through

different tools. One of the tools is Certificate of Investment (COI).

1. Certificate of Investment:

Al Zamin leasing COIs make it easy for you to invest by offering personalized

customer services and a flexible range of products with maximum security.

We revise our rate of return on a quarterly basis in order to give you the best

possible rate of return offer making adjustments for inflationary trends and

forecast. We provide steady income and higher returns.

Salient Features

Investment:

A COI is considered one of the best ways to save money and Al Zamin has made

it even better.

Flexibility:

We provide you a full line of flexibility saving products with a wide range of

terms. Competitive returns and personalized customer services so that your COI

can be tailored to fit your specific saving plan.



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Accessibility:

Our COIs are ideal for individuals, corporate bodies, firms, trust, societies,

NGOs etc. as it provide high return, maximum security, steady income

and dependability.

Our COIs are encashable at any time before maturity subject to the rules

and regulation of the scheme.

Investment can be made for as little as Rs. 10,000.

Certificate of Investment Plan

Convenient denomination to suit your requirement

Lease financing up to 90% of the COI amount can be availed at any time

Al Zamin leasing corporation limited offers you three different type of

products for investments.

1. COI Save

The objective of this scheme to provide reasonable returns, at a high

level of safety and liquidity through prudent investment in high quality

lease and money market instruments.

COI Save

Tenure Rate Amount

Payable

3 months 11.75% 2,938 On Maturity

6 months 12.00% 6,000 On Maturity

1 year 13.00% 4,333 Quarterly

2 year 13.50% 4,500 Quarterly



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2. COI Earn

This scheme is designed with an objective to provide a definite and

steady income to accommodate the monthly cash requirements of

pensioners, housewives, widows and retired persons and is an ideal way

to get regular monthly income.


COI Earn Monthly Profit

Tenure Rate Amou

nt

Payable

2 Year 13.00% 1,083 Monthly





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3. COI Prime

This scheme is framed with a primary objective of capital growth in the

form of steady generation of income.

The main features of this scheme are as follows:

Long term Investment

Minimum paperwork

Steady Income

Option for pre mature encashment

Period of Investment is five years.


COI Prime

Tenure Rate Amou

nt

Payable

2 Year 14.50% 29,000 On Maturity





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Example:We have a practical experience of opening an account in the investment

of Al Zamin leasing Corporation under the head of certificate of

investments.



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A.Lending of Money1) Corporate Financing

Since 1987 Al-Zamin Leasing is providing Financing to wide variety of

corporate customers. Whether you require industrial plants and

equipment, commercial vehicles, office equipments or vehicle for your

staff.

We offer the following modes of financing.

Capital lease - full amortization and balloon payments

Leveraged leasing structures

Lease Lines

Sale and lease back

Step up Leases

Step down Leases

Operating Leases

Working Capital Loans

Lets take an example of Lease of CNC machine and Working capital

Example:

Sapphire Fibers Limited want to take the CNC machine for their

operations, the pursue Al Zamin leasing for the financing. For availing

this facility sapphire fibers limited do the following activities



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i. Application Form

ALZ AMIN LEASING CORPORATION LIMITED

APPLICATION FORM FOR

CORPORATE / SME / MICRO LEASE FINANCE FACILITY

Company Name: Sapphire Fibers Limited

Legal Status: Corporation

Sole Proprietorship_________________

Partnership ______________________

Private Ltd _______________________

Public Ltd (Listed):Yes

Public Ltd (Unlisted) __________________

Date of incorporation (if applicable): 16-05-1992

Date of commencement of business:

Mailing Address: [email protected]

Address: Industrial estate Zone Faisalabad

Registered Office (Owned/Rented):

Owned and in Karachi

Sales Office (Owned/Rented):

Factory (Owned Rented): owned

Chief Executive/Managing Director: Mr. Shahid Abdullah



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Sector:Textile

Group Name: Sapphire Textiles

Subsidiaries / Associated / other companies:

Name Business Legal status AddressSapphire Textile Textile Public limited Faisalabad

Details of Directors

Name Father/husband name

N.I.C# ResidentialAddress

&Contact

Designati

on

Holdin

g %OwneRente

Mr.

Nadeem

MR.

Abdullah

34502-

365933-

365 D Defense

area LahoreDirector 22% Owne

d

Mr. Amir

Abdullah

MR.

Abdullah

34502-

3362658-

366 D Defense


d

Mr. Yousuf

Abdullah

MR.

Abdullah

34502-

6598569-

367 D Defense


d

Details of Lessors:

Name Branch Lease item Amount Principal

o/s

OR

Rental

O/S

Lease

period

and

maturit

y date

Reply

Al Zmain Gulber CNC 2 M 2000000 36



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Details of Lenders: (Banks, DFls, Investment Banks etc)

Name of Branch

Institution

Type of

Facility

Limit Principal o/s Date of

Outstanding

Reply

Al Zamin leasing Machinerylease

2 Million 15-04-

2009

Details of Trade Customers:

Name Contactperson

address telephone % of sale Reply

Saddiqiue

Fabrics

Purchase

Manager

Factory 041-

6234785

15% He is

satisfy

with the

Sapphire

Fibers

limited

AslamClothed MD WholeSale

dealer

042-6321475 10% He is alsosatisfy

with the

business

Total Fixed Assets: Land& Building, property and Equipment:

Rs.2682895691

No. of Employees: Management: 60 staff: 152 Labor:

1000

Business Status / Market Worthiness: Good

I contact with the competitors and the customers of the

applicant/business about the reputation and the ethical behavior of the



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applicant and the business. They provide me the good response at which

I am satisfied to execute the facility of leasing

Credit Worthiness: Good

I also make the direct contact with the venders, creditors and other

stake holder of the business and discuss the credit behavior of the

business. In reply they give me a satisfactory reply, so I decided to

execute the facility to Sapphire fibers limited



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Description of Asset:

Name of

assets

cost suppliers conditions Code from

selection

Status of

assets

CNC

machine

2 million Pak

machinery

New Ready for

Delivery

Type of assets: Machinery

Supplier: Local (direct from supplier)

Bank Reference:

Bank Name Lessee Bank Lesses Bank

Branch: HBL Bank Alfalah

Address: 342-p Defense Lahore 2236- main gulbareg LahoreAccount No: SF-5695632 AZ-55520236

Contact Person Mr. Farhan Mr. Salman

Telephone No. 042-2365985 042-3625985

Certified above information

Name of authorized person Mr. Yousuf Abdullah

Designation Director

Date 3-04-09

Signature

Company Stamp

Counter Signed by Al-Zamin Lease Officer



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Officer Name: Mr. Mehboob Alam

Designation: Branch Manager

Date: 03-04-2009

Signature:Branch Department:

ii. Lease proposal

Date: 19-03-2009 Ref: ALZ-23220

To,

Alzamin Leasing Corporation

Main Gulberg branch Lahore

Dear Sir,

Pursuant to your request for lease financing asset, we are pleased to offer

our indicative terms and conditions for lease financing.

Type of asset CNC Machine

Value 2 Million

Security deposit 10% 200000

Processing fee 5000

Monthly rental payable in advance 50000

IRR Kibor of six month + 6%

Duration 36 Months

Terms and conditions

Compliance with regulation in forceFinancial Institution of Pakistan Page 29


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Levies, charges, duties, and freight also applicable will be paid by

lessee

Personal guarantee of Mr. Habib Ahmed

Post dated cheques

Other securities negotiable

Accepted by:

Signature:

Stamp:

Financial highlights of the company

Income Statement

2008 2007

Net Sales 6511530833 5641730651Gross Profit 1090932726 953781025

Operating Expenses 58756488

77

5028969820

Operating Profit 1731268939 734762994

Financial Charges 432079660 300807242

Provision for Tax 83752510 97688236

Net Profit 1339171649 451803795

Depreciation 2088713554 1865923623



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PROFITABILITY

Growth in Sales 15.41%

Gross Profit Margin 16.75% 16.88%

Operating Profit Margin 26.58% 13.02%

Net Profit Margin 20.56% 8%

Return on Fixed Assets 19.64% 8.87%Return on Total Assets 10.83% 4.10%

Owners Index

Return on Equity 15.80% 5.50%

Earnings per Share 76.52 25.82

Dividend per Share(Rs.) 1.25 1.3

EFFICIENCY PARAMETERS

Days Receivable (Days) 49.8 55.61

Days payable (Days) 6.47 10.65

Assets Turnover 0.52 0.51

Receivable Turnover(Times) 7.43 6.56

Inventory Turnover(Times) 2.6 4.26

Fixed Asset Turnover (Times) 0.738 0.681


BALANCE SHEET

2008 2007

Proprietor's Capital 350000000 350000000

Reserves 3402930900 4765280458

Inappropriate Profit C/F 3944506236 2696477738

Net Worth 7521897136 7636758796

Long Term Loan / Inter Group Finance 3122300 4475200

Deferred Liability 182061309 165453676

Current Liabilities 3572290479 2630169503

Current Assets 3546210057 2727047007

Net Working Capital -26080422 96877502

Total Debts 1264728566 74096643

Fixed Assets 8812706124 8179977335

Total Assets 12358916181 11007024342

Inventories 2176993509 1429555332

Trade Receivable 875712482 859682075

Advances/Prepayment/Deposit 6964071 15350546

Current Maturity of LTL 207976301 227976299


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LIQUIDITY

Current Ratio 0.99 1.03

Quick Ratio 0.38 0.49

LEVERAGE

Gearing (times) 5.412 2.8

L T Debt/Equity(times) 0.39/061 0.36/0.64



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Comparative Analysis

Items 2008 2007 increase/

decrease

sale 6511530

833

5641730

651

Increase

gross profit margin 16.75% 16.88% Decrease

operating profit

margin

26.58% 13.02% Increase

net profit 20.56% 8% Increase

working capital -

2608042

2

9687750

2

Decrease

current ratio 0.99 1.03 Decrease

ROE 15.80% 5.50% Increase

EPS 76.52 25.82 Increase

Gearing 5.412 2.8 Increase

L.T Debt/equity 0.39/061 0.36/0.64 Decrease

Profitability Chart



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Operating Chart



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Form 29



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Form ATo,

The Secretary,

Copyright Board,

Karachi.

Sir,

(i). In accordance with section 4(2) of the Ordinance, We hereby refer thematter of the

(Name of the literary, dramatic, musical or artistic work or record) for the

determination

by the Board as to whether under section 4 (1) of the Ordinance, copies

of the aforesaid

Literary/dramatic: /musical/or artistic work or records issued to the public

are sufficient in

quantities.

(ii) These are delivered herewith for the perusal of the Board: -

(a) The relevant documents of the matter under reference.

(b) Eight copies of the literary, dramatic musical or artistic work or

record under

reference.

(iii) Brief statement:

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

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

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

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

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



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Name and address of the Referrer:

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

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

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

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

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



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Name and address of the Advocate of Referrer:

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

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

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

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

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

Signed: ------------------------------

Status and designation of signatory: ----------------------

Date: ----------------------------------



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Sales Invoice

Serial # 2036 Date: 04-04-2009

Supplier Name: Pak Machinery Buyer Name:

Sapphire Fibers Ltd

Address: Lahore Address: Faisalabad

PH#: 042-6258745 PH#: 041-326523

Quantit

y

Description Amount Total

1

CNC Machine 200000

0

20,00,000



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Signature: 20,00,000

/-



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Proposal for lease approval to Management



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Lease Terms:

Lease Asset CNC MachineLease Amount 20,00,000Deposit 10 % 200000Lease Period 3 YearsFrequency of rentals 1 monthGrace Period NilMonthly Lease rental (01-36) 55000Documentation charges 5000Other charges 2000

Market Reputation:

Good: Yes

Satisfactory:

Unsatisfactory:

I contact with the competitors and the customers of the

applicant/business about the reputation and the ethical behavior of the

applicant and the business. They provide me the good response at which

I am satisfied to execute the facility of leasing

Credit worthiness:

Good: Yes

Satisfactory:

Unsatisfactory:

I also make the direct contact with the venders, creditors and other

stake holder of the business and discuss the credit behavior of the

business. In reply they give me a satisfactory reply, so I decided to

execute the facility to Sapphire fibers limited



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COMPLIANCE OF SECP PRUDENTIAL REGULATIONS FOR NON-

BANKING FINANCE CORPORATION

While granting; any facility to the customers other than individuals, NBFC shall

obtain copy of accounts relating to the business of each of its borrower for

analysis and record in the following manner:

(a)Current Ratio 1 : 1 or any other ratios as prescribed by the

Commission from time to time. Note: Current

maturities of long-term debt not yet due for

payment may be excluded from the current

liabilities and Lease rentals receivable within the

next twelve months as disclosed in the annual

audited accounts shall be treated as current assets

for the purpose of calculating Current assets and

Current liabilities ratio.

0.89:1

(b)Long Term Debt / Equity Ratio 60:40 i.e. debt being 1 .5 times or 150% 39%/61%However in exceptional cases, NBFC may relax

these ratios in case of facilities up to three million

rupees, if they are satisfies that appropriate risk

mitigates have been put in place and shall record in

writing the reasons and justifications for doing so inthe approval form and maintain a file in their

central credit office containing all such approvals.

The Exceptions Approval file shall be made available

to the inspection team of the SEC during the

inspection.

This regulation shall not apply to the facilities given

to financial institutions with investment grade rating

by the credit rating agency registered with SEC or

exposure fully secured against liquid assets held as

collateral. Export finance and finance provided to



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(c)CIB Rep ort When considering proposals for fund/non-fund

based facility exceeding one million rupees, NBFCs

should give due weightage to credit report relating

to the borrower and his group obtained from CreditInformation Bureau of the State Bank of Pakistan. If

the credit report indicates over-exposure/default,

the facilities shall be .extended only after recording

reasons to do so.

"Group" means persons, whether natural or

juridical, if one of them or his family members

including spouse, lineal ascendants and

descendants and brothers and sisters or its

Clear

lf CIB not clear than record reasons and comments as to why lease should be executed:

CONCLUSION AND GROUNDS FOR APPROVAL: MEMORANDUM TO

MANAGEMENT COMMITTEE:

To: Lease F acility to M/s. Sapphire fibers Limited.

Strength/opportunities:

The direction of business is very good

Because the business is generating too many profits in the current year as

compare to the base year so hopefully it is expected that the business is going

to continue its current position in future.

The business have more than 1.5 times equity to debt

The equity of the business is almost 200% from the debt and it is good

indication for the execution the lease facility. In future there is a vast opportunity for international trading.

There is great scope of the business of fibers so we predict the good return from

business in future and it is good for us.

Weakness /threats:



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The major weakness is the local trading

The political situation of the country is not stable and the external threat is also

not good for the business. So the business is not able to conduct the

international operation and that might be effect full for the business.

Another is the limited operations

The biggest threat is the political and economic situation

If the document is approved then the agreement is going to be signed.



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AgreementIRREVOCABLE AUTHORITY TO RESPONSSESS MACNINARY

TO: Al Zamin Leasing Corporation

B-801-802, 8th floor Lakson Square Bldg. # 3

Sarwar Shaheed road Karachi.

Sub: Voluntary surrender of vehicle

Names of Machinery CNC Machine

Registration 55362-KLO-623DE-85

Code 33265-ASDF

Model 2008

Sir,

The above machine was leased by Al Zamin leasing corporation to me

against the lease finance of Rs. 2394600/-agree to pay back the financing

by way of equal monthly installments. I undertook that in default of

payment of monthly installment, I shall voluntarily deliver back the

possession of the said asset to Al Zamin leasing corporation or his

authorized agent.

Note: with this statement the legal agreement is also signed by bothparties in which each and every term and condition is written and agreed.



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Authorized Agent Lessees signature

Mehboob ALam M. Yusuf Abdullah

Witness 1 Witness 2

Ali Khalid K.Sultan



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1) Consumer Financing

CRES CAR

Al-Zamin Lease now brings a car-financing scheme which best suits your

needs.

Salient Features

Easy Documentation.

Down Payment as from 10% to 20%.

Tenor 3 to 5 years.

Comprehensive Monthly Insurance @ 3.7 %(EFU).

Quickest Processing Time

Personalized Service.

Used & Reconditioned Car Leasing

Lease amount ranging Between Rs. 150,000/- to Rs. 2,000,000/-

Balloon payment & Residual value option.



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Monthly rental can be calculated by multiplying Net financing amount of

vehicle (cost - down payment) with the following factors:

Lease Period 3

years

4

years

5 years

Lease Rental Factor 0.037

03

0.0314

5

0.02875

Insurance Installment

Factor

0.003

10

0.0029

0

0.00285

Total Rental 0.040

13

0.0343

5

0.03160

Business Person Salaried Person

Minimum

experience of 3

years

Average Credit

Balance to be 4-

times of monthly-

rental

Permanent Service

of atleast 2 years

Lease Rental Per

month should not

exceed 1/3rd of net

taken home

salray/income

Documents Required

Business Men/Self

Employed

Salaried Person

NIC copy NIC copy



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Photograph

Visiting Card/LetterHead

6 months Bank

Statement

N.T.N Certificate

copy

Photograph

Salary slip/SalaryCertificate

6 months Bank

Statement



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Lease Application Form

Personal Information

Name S/o, D/o, W/o

NIC # NTN

Address Phone #

Owner/Tenant/Family Residence

Living since Years/Months

Date of Birth Qualification

Mariatal StatusSingle

No. of Children1 Child

Eldest Child's

NameSchool Name

School Address Class

Occupation Information

Profession

Employer/business Name

Employment/Business Address

Business

PremisesOwned

Rented Other

Designation Working since

Phone # Salary/Income



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Members of Professional Association

Other Information

Do you have a Credit Card?No

Name Since

Are you a member of any Club?No

Name Since

Banking with Branch

A/c #

Reference 1:

(Neighbour)

Name

Address

Business/ Work Address

Phone # Office

NIC #

Reference 2:

(Office Bearer)

Name

Address

Business/ Work Address



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Phone # Office

NIC #



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Vehicle & Lease Information

Vehicle

NameTotal Cost

Down

Payment

Term of Lease

(months)

* I hereby declare thet the above information in correct and complete & I

authorise CresLease to verify the same



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Now let we take an example of Car leasing

Mr. Waleed wants a Suzuki Liana from Al Zamin Leasing Corporation; he

is engaging in the partnership business to avail the facility Mr. Saeed

must perform the following activities

i. Application Form

Personal Information

Name

Waleed

S/o, D/o, W/o

Abdur Sattar

NIC #34101-6632569-6

NTN22365852

AddressLD-7777 G T road

Phone #055-362596

Owner/Tenant/Family ResidenceGujranw ala Cant

Living since2002

Years/Months7 years

Date of Birth 16-08-1970 Qualification MBA

Marital StatusMarried

No. of Children3 Children

Eldest Child's

Name

Kashif saeedSchool Name

APS

School AddressGujranw ala Cant

Class12

Occupation Information

Professionbusiness man

Employer/business Namebrothers engerrings

Employment/Business Addresssmall estate 2

Business

Premises

small estate 2Owned

yes



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Rented Other

Designation MD Working since 1999

Phone #055323265

Salary/Income1 lac

Members of Professional Association

Other Information

Do you have a Credit Card?No

Name Since

Are you a member of any Club?No

Name Since

Banking with Branch

A/c #

Reference 1:

(Neighbour)

NameAli Khalid

AddressModel tow n

Business/ Work AddressKPS

Phone #055-985632

Office055-652321

NIC #31425-6322569-3

Reference 2:

(Office Bearer)



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NameAs lam Baig

Address

Gujranw ala Cant

Business/ Work Addressmaster tiles

Phone #055-3214583

Office055-268512

NIC #32256-62325698-

Vehicle & Lease Information

Vehicle Name Suzuki Liana Total Cost 939000

Down Payment93900

Term of Lease

(months)

36

* I hereby declare that the above information in correct and complete & I

authorize Al Zamin leasing to verify the same



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ii. Lease proposal

Date: 19-03-2009 Ref: ALZ-23220

To,

Alzamin Leasing Corporation

Trust plaza Gujranwala

Dear Sir,

Pursuant to your request for lease financing asset, we are pleased to offer

our indicative terms and conditions for lease financing.

Type of asset Suzuki Liana

Value 1124264

Security deposit 112426

Processing fee 2000

Monthly rental payable in advance 46844

Time Period 24 Months

IRR Kibor of 3 Month + 6%



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Terms and conditions

Compliance with regulation in force

Levies, charges, duties, and freight also applicable will be paid by

lessee

Personal guarantee of Mr. Habib Ahmed

Post dated cheques

Other securities negotiable

Accepted by:

Signature:

Stamp:

__________________

Signature of

Witness



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CNIC (for Individual)

1 Taxpayer's Nam

2 Bussines Name

3 Business Addre

4 Res. Address

5

egistration

E-Mail Address

R



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Proposal for lease approval to Management

Lease Terms:

Lease Asset Suzuki BaleenoLease Amount 1124264

Deposit 10 % 112426Lease Period 2 YearsFrequency of rentals AdvanceGrace Period NilFront end Fee NilMonthly Lease rental (01-24) 46844.33Documentation charges 3000Other charges NilIRR Kibor of 6 month + 6%

Market Reputation:

Good: Yes

Satisfactory:

Unsatisfactory:

Credit worthiness:

Good: Yes

Satisfactory:

Unsatisfactory



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COMPLIANCE OF SECP PRUDENTIAL REGULATIONS FOR NON-

BANKING FINANCE CORPORATION

While granting; any facility to the customers other than individuals, NBFC shall

obtain copy of accounts relating to the business of each of its borrower for

analysis and record in the following manner:

(a)Current Ratio 1 : 1 or any other ratios as prescribed by the

Commission from time to time. Note: Current

maturities of long-term debt not yet due for

payment may be excluded from the current

liabilities and Lease rentals receivable within the

next twelve months as disclosed in the annual

audited accounts shall be treated as current assets

for the purpose of calculating Current assets and

Current liabilities ratio.

2:1

(b)Long Term Debt / Equity Ratio 60:40 i.e. debt being 1 .5 times or 150% 100% equity

However in exceptional cases, NBFC may relax

these ratios in case of facilities up to three million

rupees, if they are satisfies that appropriate risk

mitigates have been put in place and shall record in

writing the reasons and justifications for doing so inthe approval form and maintain a file in their

central credit office containing all such approvals.

The Exceptions Approval file shall be made available

to the inspection team of the SEC during the

inspection.

This regulation shall not apply to the facilities given

to financial institutions with investment grade rating

by the credit rating agency registered with SEC or

exposure fully secured against liquid assets held as



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(c)CIB Rep ort When considering proposals for fund/non-fund

based facility exceeding one million rupees, NBFCs

should give due weight age to credit report relating

to the borrower and his group obtained from CreditInformation Bureau of the State Bank of Pakistan. If

the credit report indicates over-exposure/default,

the facilities shall be .extended only after recording

reasons to do so.

"Group" means persons, whether natural or

juridical, if one of them or his family members

including spouse, lineal ascendants and

descendants and brothers and sisters or its

Clear

lf CIB not clear than record reasons and comments as to why lease should be executed:

CONCLUSION AND GROUNDS FOR

APPROVAL: MEMORANDUM TO

MANAGEMENT COMMITTEE:

Strength/opportunities:

The direction of business is very good

Because the business is generating too many profits in the current year as

compare to the base year so hopefully it is expected that the business is going

to continue its current position in future. The business have more than 1.5 times equity to debt

The equity of the business is almost 200% from the debt and it is good

indication for the execution the lease facility.

In future there is a vast opportunity for international trading.

There is great scope of the business of fibers so we predict the good return from

business in future and it is good for us.



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Weakness /threats:

The major weakness is the local trading

The political situation of the country is not stable and the external threat is also

not good for the business. So the business is not able to conduct the

international operation and that might be effect full for the business.

Another is the limited operations

The biggest threat is the political and economic situation

If the document is approved then the agreement is going to be signed.



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i. Agreement

IRREVOCABLE AUTHORITY TO RESPONSSESS MACNINARY

TO: Al Zamin Leasing Corporation

Trust Plaza Gujranwala

Sub: Voluntary surrender of vehicle

Names of Machinery Suzuki Liana

Registration 55362-KLO-623DE-85

Engine # SL-PAW2F8GBV

Model 2009

Sir,

The above machine was leased by Al Zamin leasing corporation to me

against the lease finance of Rs. 1124264/-agree to pay back the financing byway of equal monthly installments. I undertook that in default of payment of

monthly installment, I shall voluntarily deliver back the possession of the

said asset to Al Zamin leasing corporation or his authorized agent.

Note: with this statement the legal agreement is also signed by both parties

in which each and every term and condition is written and agreed.

Authorized Agent Lessees signature

Witness 1 Witness 2



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House hold applianceAl Zamin leasing also proving the facility of lease house hold appliance under

the head of consumer financing.

Salient Features

You are free to select from the shop of your choice.

You are free to select from long list of items.

You don't have to pay high deposit, for equipment & household items.

You can get financing up to Rs.100, 000/-.

Repayment of installments can stretch over 1 to 3 years.

Comprehensive insurance arranged at attractive rates.

Life insurance to the extent of financing will be arranged so that yourfamily doesn't get bothered in case of any mishap.

Our attractive rates are as follows:

For equipment: Deposit 10%

36 months 24 months 12 months

0.03466 0.04653 0.08286

Calculate your rentals by multiplying the net financing (cost less deposit) of

asset with the factor of the selected period.



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Here are some requirements

Approval is subject to operating guidelines of Al-Zamin Lease.

The minimum lease finance facility is for Rs.10, 000.

Lease rental per month shall not exceed 60% of employee's take home

salary/income.



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Future PlanningAl Zamin Leasing Corporation is planning to merge with Global Islamic Bank.

This merger is in under process, we can say that the due diligence reports

are prepared and goes for the evaluation when the reports got the clearance

the merger takes place.