first quarter report 30 september 2011 (un-audited) · share registrar f.d. registrar services...

First Quarter Report30 September 2011

(Un-audited)

FIRST DAWOOD INVESTMENT BANK LIMITEDCONTENTS

Corporate Information 2

Directors’ Report 3

Balance Sheet 4

Profit & Loss Account 5

Cash Flow Statement 6

Statement of Changes in Equity 8

Statement of Comprehensive Income 9

Notes to the Financial Statement 10

02

FIRST DAWOOD INVESTMENT BANK LIMITEDCORPORATE INFORMATION

Board of Directors Mr. Rafique Dawood ChairmanMr. Abdus Samad Khan Chief Executive OfficerMr. Rasheed Y. Chinoy DirectorMr. Ayaz Dawood DirectorMr. AVM (R) Syed Javed Raza Director (Nominee of DCM)Mr. Omar Hasan Khan Bangash DirectorMr. M. Riyazul Haque Director (Nominee of NIT)

Audit Committee Mr. Rasheed Y. Chinoy ChairmanMr. Omar Hasan Khan Bangash MemberMr. M. Riyazul Haque Member

Chief Financial Officer & Mr. Abbas QurbanCompany Secretary

Auditors M. Yousuf Adil Saleem & Co.Chartered Accountants

Legal Advisor Mohsin Tayebaly & Co.

Bankers Bank Al-HabibHabib Metro BankNational Bank of PakistanOman International BankAl-Baraka Islamic BankStandard Chartered BankUnited Bank

Registered Office 1900-B, Saima Trade Towers, I.I. Chundrigar Road, Karachi-74000Head Office PABX +92 (21) 3227-1874-84, 3701-0960-65, 3701-4641-44

Fax +92 (21) 3227-1912 -913Email [email protected] www.firstdawood.com

Branch Offices Islamabad BranchOffice No. 20 & 21, Beverly Centre, 1st Floor, 56-G-7, Jinnah Avenue,Islamabad-7400.Tel +92 (051) 227-6367 & 227-4194-5Fax +92 (051) 227-1280Email [email protected]

Lahore BranchSuite No. 210, 5th Floor, Siddiq Trade Centre, Main Boulevard,Gulberg III, LahoreTel +92 (42) 3578-1888Fax +92 (42) 3578-1890Email [email protected]

Share Registrar F.D. Registrar Services (SMC-Pvt) Ltd.1108, 11th Floor, Trade Centre I.I. Chundrigar Road, Karachi-74000Tel +92 (21) 3547 8192-93Fax +92 (21) 3262 1233Email [email protected], [email protected]

03

FIRST DAWOOD INVESTMENT BANK LIMITED

IN THE NAME OF ALLAH THE MOST COMPASSIONATE, THE MOST MERCIFUL

Dear Shareholders,

The Board of Directors of First Dawood Investment Bank Limited ("FDIB" or the "Company") is pleased to present the unauditedfirst quarter interim financial statements of the Company for the period ended September 30, 2011.

Your company during the period under review recorded after-tax loss of Rs.40.69 million as compared to profit of Rs.43.73 millionduring the corresponding period last year. The loss is mainly attributed to providing certain uncertain receivables and revaluingsecurities as per its book value. Gross revenue for the quarter is Rs.4.88 million as compared to Rs.47.63 million during correspondingthree months in last year mainly due to settlement of assets with called liabilities and suspension of income on classified loanportfolio. Administrative expenses for the period under review continued its declining trend and have reduced to Rs.18.26 millionfrom Rs.19.80 million. Financial charges have been reduced to Rs.11.40 million from Rs.15.57 as compared to correspondingperiod. The main factor of this reduction was settlement of liabilities.

We are aware of the challenges ahead but we look forward to the future with confidence and expect that your company will witnessgrowth in the business activities as well as revenue generation capacity through diversified business lines.

The Board of Directors acknowledges and appreciates the collective effort and contribution of all staff members and management.We also take this opportunity to express our gratitude to SECP, our valued customers, business partners, other stakeholders,shareholders and particularly our creditors for their continued patience, confidence and patronage.

October 29, 2011Karachi.

On behalf of the Board of Directors First Dawood Investment Bank Ltd

Rafique Dawood

Chairman

DIRECTORS' REPORT

04


Property and equipmentInvestment propertiesNet investment in lease financeLong-term investmentsLong-term financesLong-term loansLong-term depositsDeferred tax asset

Current portion of non-current assetsShort term investmentsPlacements and financesAdvance against lease commitmentsAdvances and prepaymentsMark-up accruedOther receivablesCash and bank balances

Ordinary sharesPreference shares

ReservesAccumulated loss

Deficit on revaluation of investments

Long-term loansLong-term deposits

Current portion of long term liabilitiesMark-up accruedShort-term borrowingsCertificates of investmentAccrued and other liabilitiesTaxation

The annexed notes from 1 to 20 form an integral part of these financial statements.

BALANCE SHEETAS AT SEPTEMBER 30, 2011

September 30 June 302011 2011

5 67,213,368 69,470,9986 119,086,520 119,086,5207 54,382,476 60,223,0738 193,109,819 163,947,1709 10,630,976 12,843,780

296,863 315,7962,500,000 2,500,000

98,116,360 98,116,360545,336,382 526,503,697

10 876,016,973 922,840,41711 49,835,209 49,886,43812 132,314,879 133,538,651

21,000,000 21,000,00010,372,484 9,619,1442,017,933 1,690,893

40,455,571 45,759,84999,891,441 114,051,788

1,231,904,490 1,298,387,1801,777,240,872 1,824,890,877

626,492,900 626,492,900715,833,540 715,833,540

1,342,326,440 1,342,326,440333,744,789 333,744,789

(1,108,078,795) (1,060,165,419)567,992,434 615,905,810(23,577,888) (24,762,440)544,414,546 591,143,370

13 447,075,196 559,128,69317,565,321 18,089,621

464,640,517 577,218,314

14 387,207,437 277,672,81582,739,657 69,338,411

15 81,418,223 81,418,22316 159,500,000 165,500,000

52,445,322 58,224,5714,875,170 4,375,173

768,185,809 656,529,19317

1,777,240,872 1,824,890,877

CHIEF EXECUTIVE OFFICER DIRECTOR

Unaudited Audited

05


PROFIT AND LOSS ACCOUNTFOR THE PERIOD ENDED SEPTEMBER 30, 2011


INCOMELease incomeReturn on placements, finances, deposits and investmentsGain on sale of securitiesIncome from long-term financesExchange gainOther (loss) / income

(Provision) / Reversal for lease losses and doubtful recoveries

Administrative expensesFinance cost

Share of (loss) / profit of associates

Current

(Loss) / earnings per share - basic Rupees

(Loss) / earnings per share - diluted Rupees


September 30 September 30

2,005,304 5,325,9647,463,295 12,392,966

- 402,4002,018,372 13,271,626

2,393 2,845(6,599,737) 16,236,7794,889,627 47,632,580

(7,364,880) 18,029,280(2,475,253) 65,661,860

18,264,321 19,804,87511,401,467 15,572,269

(29,665,788) (35,377,144)(32,141,041) 30,284,716

(8,055,164) 14,449,146(40,196,205) 44,733,862

500,000 1,000,000

(40,696,205) 43,733,862

(0.65) 0.70

(0.30) 0.33

06


A. CASH FLOW FROM OPERATING ACTIVITIES

B. CASH FLOW FROM INVESTING ACTIVITIES

Purchase of property and equipmentProceeds from sale of property and equipmentLong term investmentShort term investments

(76,400) (2,373,179)121,050 56,000

- -51,230 (59,443,186)95,880 (61,760,365)

Increase / (decrease) in operating liabilitiesCertificates of investment / depositsDepositsShort-term borrowingsAccrued and other liabilities

Finance cost paidTax paid

(6,000,000) (15,566,522)(2,293,175) (10,729,816)

- -(5,779,249) (8,364,529)

(6,645,442) 59,825,882(6,504,962) (27,902,370)

(355,823) (522,778)(13,506,227) 31,400,734

(Increase) / decrease in operating assetsNet investment in lease financeLong-term financesLong-term loansPlacements and financesAdvances and prepaymentsAdvance against lease commitmentsInterest accruedOther receivables

8,266,351 89,667,865808,344 12,373,917

89,811 96,380140,000 2,000,000

(397,517) (150,712)- -

2,056,139 24,058,594(1,338,777) (61,861,270)9,624,351 66,184,7747,426,982 94,486,749

(Loss) / Profit before taxationAdjustments:- Depreciation- Gain on sale of investments- Share of loss / (profit) of equity accounted investees- Finance cost- Gain on sale of property and equipment- Provision / (Reversal) for lease losses and doubtful recoveries- Exchange gain- Other loss / (income)

(40,196,205) 44,733,862

2,212,980 912,315- (402,400)

8,055,164 (14,449,146)11,401,467 15,572,269

- (32,800)7,364,880 (18,029,280)

(2,393) -8,966,738 (2,845)

37,998,836 (16,431,887)(2,197,369) 28,301,975

CASH FLOW STATEMENTFOR THE PERIOD ENDED SEPTEMBER 30, 2011



C. CASH FLOW FROM FINANCING ACTIVITIES

Repayment of long-term loans

Cash and cash equivalents at beginning of the yearCash and cash equivalents at end of the year

(750,000) (750,000)(750,000) (750,000)

(14,160,347) (31,109,631)

114,051,788 46,638,19299,891,441 15,528,561

07


09



Net (loss) / income after taxation for the year

Other comprehensive (loss) / income

Deficit on re-measurement of investments classifiedas available for sale

Share of surplus on remeasurementof investments in associate

Total comprehensive (loss) / income for the year


(40,696,205) 43,733,862

- (5,934,996)

1,184,552 -

(39,511,653) 37,798,866

STATEMENT OF COMPREHENSIVE INCOMEFOR THE PERIOD ENDED SEPTEMBER 30, 2011

10


1. STATUS AND NATURE OF BUSINESS

First Dawood Investment Bank Limited ("the Company") was incorporated on June 22, 1994 as a public limited companyin Pakistan under the Companies Ordinance, 1984 and is listed on the Karachi Stock Exchange. The registered office of theCompany is situated in Karachi, Pakistan. The Company had obtained the licenses for Leasing business and InvestmentFinance Services under Non Banking Finance Companies (Establishment and Regulation) Rules, 2003 ("the Rules") andNon Banking Finance Companies and Notified Entities Regulations, 2008 ("the Regulation") from the Securities and ExchangeCommission of Pakistan (SECP), which has been expired and now applied for renewal.

2. BASIS OF PRESENTATION

These condensed interim financial statements are unaudited and have been prepared in accordance with the requirementsof the Non Banking Finance Companies and Notified Entities Regulations, 2008 (the Regulation), the Non Banking FinanceCompanies (Establishment and Regulation) Rules, 2003 (the Rules), the Companies Ordinance, 1984 (the Ordinance),directives issued by the SECP and approved accounting standards as applicable in Pakistan. Approved Accounting Standardscomprise of such International Financial Reporting Standards (IFRS) as are notified under the provisions of the Ordinance.Wherever, the requirements of the Rules, the Regulations, the Ordinance or directives issued by SECP differ with therequirements of these standards, the requirements of the Regulations, the NBFC Rules, the Ordinance and the said directivestake precedence. The disclosures made in these interim financial information have, however, been limited based on therequirements of the IAS 34: 'Interim Financial Reporting'.

The condensed interim financial statements is being submitted to the shareholders as required by Section 245 of the CompaniesOrdinance, 1984.

3. BASIS OF MEASUREMENT

These interim financial statements have been prepared under the historical cost convention except for the measurement ofcertain financial instruments at fair value.

4. ACCOUNTING POLICIES

The accounting policies and methods of computation adopted in preparation of these interim financial statements are thesame as those applied in the preparation of annual financial statements of the Company for the year ended 30 June 2011.

BuildingLeasehold ImprovementsFurniture & fixturesEquipment and appliancesVehicles

Equipment and appliancesVehicles

- 51,072,000- 6,898,253- 128,735- 1,599,835

76,400 5,938,50076,400 65,637,323

- 999,550146,900 1,937,800146,900 2,937,350

5.1

5.2

NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)FOR THE PERIOD ENDED SEPTEMBER 30, 2011

5.

BuildingLeasehold ImprovementsFurniture & fixturesEquipment and appliancesVehicles

49,582,400 50,220,8005,748,545 6,323,399

158,486 162,7671,480,382 1,591,383

10,243,555 11,172,64967,213,368 69,470,998

PROPERTY AND EQUIPMENT

11


6. INVESTMENT PROPERTIES

Opening balanceAcquired in settlement of assetsDisposed off in settlement of liabilitiesTransferred to operating fixed assetsGain on fair value adjustment

119,086,520 191,037,708- 187,685,500- (214,027,312)- (51,072,000)- 5,462,624

119,086,520 119,086,520

7.

Net investment in lease financeProvision for doubtful receivablesCurrent portion

7.1 956,644,226 966,280,391(313,945,872) (313,945,872)

10 (588,315,878) (592,111,446)54,382,476 60,223,073

NET INVESTMENT IN LEASE FINANCE

Minimum lease payments receivable 975,554,990 984,755,035Residual value of leased assets 177,030,409 179,323,584

1,152,585,399 1,164,078,619

Unearned finance income (195,941,173) (197,798,228)Net Investment in lease finance 956,644,226 966,280,391

7.1

8. LONG TERM INVESTMENTS

163,947,170 22,961,15036,033,261 -

- 136,552,931(8,055,164) 1,551,3491,184,552 2,881,740

193,109,819 163,947,170

8.1

Opening BalanceIncrease in interest in associatesTransfer to available-for-sale investmentShare of profit / (loss)Share of surplus / (deficit) on revaluation of investments

21,901,682 22,357,89018,882,032 17,266,435

152,326,105 124,322,845193,109,819 163,947,170

8.1.1

2,246,070 2,246,070 Dawood Capital Management Ltd.4,762,100 4,762,100 B.R.R. Investments (Private) Ltd.

20,026,010 15,526,010 Dawood Family Takaful Limited

LONG TERM FINANCES

CURRENT PORTION OF NON-CURRENT ASSETS

Net investment in lease financeLong-term financesLong-term loans

7 588,315,878 592,111,4469 287,626,757 330,583,755

74,338 145,216876,016,973 922,840,417

10.

Term finance facilitiesProvision for doubtful receivablesCurrent portion

438,175,312 483,983,656(139,917,579) (140,556,121)

10 (287,626,757) (330,583,755)10,630,976 12,843,780

9.

12


11. SHORT TERM INVESTMENTS

Investments - Available for sale

Term finance certificatesUnquoted securities

29,073,776 29,125,00520,761,433 20,761,43349,835,209 49,886,438

11.1

13. LONG TERM LOANS

Foreign CurrencyAsian Development Bank

Local CurrencyCommercial banks

Maturing within one year

73,836,385 73,836,385

613,885,597 614,635,597687,721,982 688,471,982

14 (240,646,786) (129,343,289)447,075,196 559,128,693

14. CURRENT PORTION OF LONG TERM LIABILITIES

Long term loansLease deposits

240,646,786 129,343,289146,560,651 148,329,526387,207,437 277,672,815

15. SHORT TERM BORROWINGS

From commercial banks - call borrowingsNon-banking finance companies - call borrowings

6,418,223 6,418,22375,000,000 75,000,00081,418,223 81,418,223

16. SHORT TERM CERTIFICATES OF INVESTMENT / DEPOSIT

Non banking financial institutions 159,500,000 165,500,000159,500,000 165,500,000

12. PLACEMENTS AND FINANCES

Placements and finances- unsecuredProvision for doubtful finances

Financing against sharesProvision for doubtful finances

Short-term finance - securedProvision for doubtful finances

Certificates of depositProvision for doubtful deposits

Morabaha / Musharika FinancesProvision for Doubtful Finances

15,000,000 15,000,000- -

15,000,000 15,000,000

341,071,100 341,071,100(340,830,200) (340,755,324)

240,900 315,776

66,156,568 66,221,567(13,368,478) (13,433,478)52,788,090 52,788,089

5,000,000 5,000,000(5,000,000) (5,000,000)

- -

136,287,780 136,362,780(72,001,891) (70,927,994)64,285,889 65,434,786

132,314,879 133,538,651

13


18. TRANSACTIONS WITH RELATED PARTIES

18.1 Related parties comprises of major shareholders, associated companies with or without common directors, othercompanies with common directors, retirement benefit fund, directors, key management personnel and their close familymembers.

18.2 Details of transactions with related parties and balances with them except for those disclosed elsewhere in the financialstatements as at the year-end are as follows:

17. CONTINGENCIES AND COMMITMENTS

Contingent Liability

Letters of comfort / guarantee 2,991,350,000 2,991,350,000

17.1

Balance at beginningIncrease / (decrease) in interestTransfer to / (from) available for sale investmentsShare of (loss / profit)Share of surplus / (deficit) on revaluationBalance at end of the year

Advances & PrepaymentsDisposal of fixed assets - cost

- -- - -

-- - -- -

- -- -

- -- - -

Balance at beginning of the yearSanctioned / grantedReceived during the yearBalance at end of the year

- - - -

- - -- - - -

Balance at beginning of the yearSanctioned / grantedReceived during the yearBalance at end of the year

- -- - - -

- -- - -

Balance at beginning of the yearSanctioned / grantedRentals received / settledBalance at end of the year

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

22,961,150

136,552,9311,551,349

2,881,740163,947,170

8,100,000

165,434,514(165,434,514)

52,581,328

(52,581,328)

879,000

394,796

(322,997)71,799

163,947,17036,033,261

(8,055,164)

1,184,552193,109,819

8,100,000

71,799

(71,799)

14


19. DATE OF AUTHORIZATION FOR ISSUE

These financial statements were authorized for issue on October 29, 2011 by the Board of Directors of the Company.

20. GENERAL

Figures have been rounded off nearest to Rupee.

Short term investments acquiredProperty acquiredOther receivables acquiredNet investment in

finance lease - transferredOther receivables - transferredCash and bank balances - paidLong term finances transferredShort term investments transferredRedeemable capital settledMarkup accrued on redeemable

capital settledMarkup receivable transferred

- - -- - -- - -

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

- - -- - -


96,727,732144,138,00126,950,351

(53,695,681)(31,204,862)(7,324,319)

(163,472,076)(145,396,950)194,000,000

13,881,896(2,767,896)

4,284,932690,767

14,449,1463,046,925

Finance costLease IncomeReturn on placements, finances, deposits and investmentsCommon expenses chargedShare of (loss) / profit from associateShare of common expenses paidService charges on staff loanGain on settlement of

redeemable capitalGroup Insurance

- - -- - -

- - -- - -- -- -

5,339 - 10,268 -

- - - -- -

305,1621,402,782

(8,055,164)328,498

91,260

Lahore : Suite No. 210, 5th Floor, Siddiq Trade Centre, Main Boulevard, Gulberg III, LahoreTel : +92 (42) 3578-1888 Fax : +92 (42) 3578-1890 Email : [email protected]

Islamabad : Office No. 20 & 21, Beverly Centre, 1st Floor, 56-G-7, Jinnah Avenue, Islamabad-7400.Tel : +92 (051) 227-6367 & 227-4194-5 Fax : +92 (051) 227-1280

Email : [email protected]

PABX : +92 (21) 3227-1874-84, 37010960-65, 37014641-44Fax : +92 (21) 3227-1912-13 Email : [email protected]

1900-B

first quarter report 30 september 2011 (un-audited) · share registrar f.d. registrar services...

Documents