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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
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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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Al Zamin Leasing Corporation
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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Al Zamin Leasing Corporation
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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Al Zamin Leasing Corporation
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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Al Zamin Leasing Corporation
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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Al Zamin Leasing Corporation
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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Al Zamin Leasing Corporation
BODs
Board of Directors of Cres Lease comprise of seven members. The current
composition of the board is as under:
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Al Zamin Leasing Corporation
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.
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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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Al Zamin Leasing Corporation
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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Al Zamin Leasing Corporation
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.
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COI Earn Monthly Profit
Tenure Rate Amou
nt
Payable
2 Year 13.00% 1,083 Monthly
3 Year 14.00% 1,167 Monthly
4 Year 14.50% 1,208 Monthly
5 Year 15.00% 1,250 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.
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COI Prime
Tenure Rate Amou
nt
Payable
2 Year 14.50% 29,000 On Maturity
3 Year 15.50% 46,500 On Maturity
4 Year 16.00% 64,000 On Maturity
5 Year 16.50% 82,500 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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Al Zamin Leasing Corporation
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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Al Zamin Leasing Corporation
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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Al Zamin Leasing Corporation
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
area LahoreDirector 15% Owne
d
Mr. Yousuf
Abdullah
MR.
Abdullah
34502-
6598569-
367 D Defense
area LahoreDirector 12% Owne
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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Al Zamin Leasing Corporation
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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Al Zamin Leasing Corporation
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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Al Zamin Leasing Corporation
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
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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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Al Zamin Leasing Corporation
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
Financial Institution of Pakistan Page 31
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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Al Zamin Leasing Corporation
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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Al Zamin Leasing Corporation
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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Al Zamin Leasing Corporation
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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Al Zamin Leasing Corporation
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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Al Zamin Leasing Corporation
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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Al Zamin Leasing Corporation
(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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Al Zamin Leasing Corporation
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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Al Zamin Leasing Corporation
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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Al Zamin Leasing Corporation
Authorized Agent Lessees signature
Mehboob ALam M. Yusuf Abdullah
Witness 1 Witness 2
Ali Khalid K.Sultan
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Al Zamin Leasing Corporation
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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Al Zamin Leasing Corporation
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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Al Zamin Leasing Corporation
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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Al Zamin Leasing Corporation
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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Al Zamin Leasing Corporation
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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Al Zamin Leasing Corporation
Phone # Office
NIC #
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Al Zamin Leasing Corporation
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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Al Zamin Leasing Corporation
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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Al Zamin Leasing Corporation
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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Al Zamin Leasing Corporation
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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Al Zamin Leasing Corporation
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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Al Zamin Leasing Corporation
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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Al Zamin Leasing Corporation
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Al Zamin Leasing Corporation
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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Al Zamin Leasing Corporation
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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Al Zamin Leasing Corporation
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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Al Zamin Leasing Corporation
(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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Al Zamin Leasing Corporation
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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Al Zamin Leasing Corporation
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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Al Zamin Leasing Corporation
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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Al Zamin Leasing Corporation
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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Al Zamin Leasing Corporation
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.
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