Mission Statement
To be the leading financial institution in the country that provides lease finance facilities to the SME sector on a sustainable basis.
To have a client focused strategy and develop the approach and expertise in SME's that will set an example and lead the way for the financial industry to serve the SME's on a commercial basis.
Vision Statement
In partnership with the people, empowering small and medium enterprises, strengthening the economy, towards a prosperous Pakistan.
Contents |
04 |
Corporate Information |
06 |
Notice of the 21st Annual General Meeting |
08 |
Directors' Report |
24 |
Chairman's Review Report |
26 |
Financial Highlights and Charts |
28 |
Code of Conduct |
30 |
Statements of Compliance with the Listed Companies |
(Code of Corporate Governance) Regulations, 2019 and |
Public Sector Companies (Corporate Governance) Rules, 2013 |
38 |
Review Report to the Members on the Statements of Compliance with the |
Listed Companies (Code of Corporate Governance) Regulations, 2019 and |
Public Sector Companies (Corporate Governance) Rules, 2013 |
40 |
Independent Auditors' Report to the Members |
45 |
Statement of Financial Position |
46 |
Statement of Profit or Loss |
47 |
Statement of Comprehensive Income |
48 |
Statement of Changes in Equity |
49 |
Statement of Cash Flows |
50 |
Notes to the Financial Statements |
87 |
Pattern of Shareholding |
Proxy Form |
02 |
Annual Report 2022 |
Branch Network |
KARACHI |
Main Branch: |
Office # 304, 3rd Floor, Business Arcade, |
Shahra-e-Faisal, Karachi. |
Phone No. 92-21-34322128-9 Fax: 92-21-34322082 |
HYDERABAD |
M-06, Mezzanine Floor, Rabi Shopping Centre, |
Cantonment Area, Saddar. |
Phone: 022-9200747, Fax: 022-2782418 |
LAHORE |
Office No. 04, Ground Floor, Fahad Arcade, |
Regal Chowk, The Mall Road, Lahore. |
Phone: 042-37235234 |
ISLAMABAD |
SME Bank Limited, 1st Floor, 5-6/1, |
Blue Area, Islamabad. |
Phone: 051-9217000 Ext. 54 |
PESHAWAR |
34, Ground Floor, State Life Building, The Mall, Peshawar Cantt. |
Phone: 091-9211683,091-5254004, Fax: 091-9211683 |
03 |
Corporate Information |
BOARD OF DIRECTORS |
Mr. Javed Mehmood, Chairman |
Mr. Dilshad Ali Ahmad |
Mr. Tahir Saeed Effendi |
Mr. Muhammad Mubeen Mufti |
Mr. Bilal Mohy Ud Din |
Ms. Darakhshan S. Vohra |
CHIEF EXECUTIVE OFFICER |
Mr. Asghar Maqsood |
AUDIT COMMITTEE |
Mr. Tahir Saeed Effendi, Chairman |
Mr. Muhammad Mubeen Mufti |
Mr. Bilal Mohy Ud Din |
RISK MANAGEMENT COMMITTEE |
Mr. Javed Mehmood, Chairman |
Mr. Muhammad Mubeen Mufti |
Mr. Bilal Mohy Ud Din |
Ms. Darakhshan S. Vohra |
HUMAN RESOURCE COMMITTEE |
Mr. Tahir Saeed Effendi, Chairman |
Mr. Dilshad Ali Ahmad |
Mr. Muhammad Mubeen Mufti |
Mr. Asghar Maqsood |
Ms. Darakhshan S. Vohra |
PROCUREMENT COMMITTEE |
Mr. Tahir Saeed Effendi, Chairman |
Mr. Dilshad Ali Ahmad |
Mr. Bilal Mohy Ud Din |
NOMINATION COMMITTEE |
Mr. Tahir Saeed Effendi, Chairman |
Mr. Dilshad Ali Ahmad |
Mr. Muhammad Mubeen Mufti |
04 |
Annual Report 2022 | |
Corporate Information | |
COMPANY SECRETARY & CFO | |
Mr. M. Shahzad | |
EXTERNAL AUDITORS | |
BDO Ebrahim & Co, | |
Chartered Accountants | |
INTERNAL AUDITOR | |
Syed Khurram Ali | |
TAX CONSULTANTS | |
EY Ford Rhodes | |
Chartered Accountants | |
LEGAL ADVISOR | |
Mohsin Tayebaly & Company | |
Advocate & Legal Consultant | |
CREDIT RATING | |
Long Term: B- (B Minus) | Short Term: A4 |
REGISTERED OFFICE | |
56-F,Nazim-ud-Din Road, F-5/1, Blue Area, Islamabad | |
MAIN OFFICE | |
Office No.304, 3rd Floor, Business Arcade, Shahra-e-Faisal, Karachi | |
Tel: (+92-21)34322128-129-137 | |
Fax: (+92-21) 34322082 | |
E-mail: info@smelease.com | |
REGISTRAR AND SHARE TRANSFER CERTIFICATE | |
Corptec Associates (Pvt.) Limited | |
503-E, Johar Town, Lahore | |
BANKS AND LENDING INSTITUTIONS | |
SME Bank Limited | |
Meezan Bank Limited | |
05 |
Notice of the 21st Annual General Meeting
Notice is hereby given that the Twenty First Annual General Meeting of the shareholders of SME Leasing Limited (the Company) will be held on Thursday, January 11, 2024 at 10:30 am via online over Zoom, to transact the following business:
ORDINARY BUSINESS.
- To confirm the minutes of the 20th Annual General Meeting of the Company held on April 26, 2022.
- To receive, consider and adopt the audited Financial Statements of the Company for the year ended December 31, 2022 together with the Directors' and Auditors' Reports thereon.
- To appoint Auditors of the Company for the year ending December 31, 2023 and fix their remuneration. The Board of Directors has recommended appointment of M/s. BDO Ebrahim & Co, Chartered Accountants as auditors of the
Company, for the year ending December 31, 2023.
4. To transact any other business with the permission of the Chair.
By Order of the Board
Ehsan
Company Secretary
Karachi: December 22, 2023
Email: 21agm@smelease.com Join Zoom Meeting https://us06web.zoom.us/j/7666978760?pwd=SWV0cVhrMzV1cVhpc1RWV0NQOXREQT09
Meeting ID: 766 697 8760
Passcode: bz2nQV
Notes:
- The Register of the members of the Company will remain closed from January 05, 2024 to January 11, 2024 (both days inclusive).
-
In line with the directions issued to the listed companies by the SECP, vide circular No. 6 of 2021 dated March 03, 2021, the Company intends to convene the Annual General Meeting (AGM) virtually via video link facility managed from the Registered Office of the Company, located at, SME Bank Limited. 56-F,Nazim-ud-din Road, F-6/1, Blue Area, P.O Box 1587, Islamabad for the facility of all its Shareholders. The virtual meeting is being held in line with Company's austerity measures in the wake of current macro-economic situation and in order to ensure maximum participation of Shareholders.
The entitled shareholders (whose name appeared in the Books of the Company by close of business on January 05, 2024 interested in attending the AGM through electronic means are requested to get themselves registered with the Company Secretary Office at least 48 hours before the holding of AGM at 21agm@smelease.com by providing the following:
06
Annual Report 2022
Name of | CNIC No. | Folio / CDS No. | Cell No. | Email address | ||||||
shareholder | ||||||||||
Login facility will be opened thirty minutes before the meeting time to enable the participants to join the meeting after identification process. Shareholders will be able to login and participate in the AGM proceedings through their devices after completing all the formalities required for identification and verification of the shareholders.
The entitled shareholders may send their comments and suggestions relating to the agenda items of the AGM to the Company Secretary office at least two working days before the AGM, at above mentioned email address. Shareholders are required to mention their full name, CNIC No. and Folio / CDS No. for this purpose.
- A member entitled to attend and vote at the meeting may appoint another member as his / her proxy to attend, speak and vote at the meeting on his / her behalf. The proxy form must be deposited at the Main office of the Company situated at 304, 3rd Floor, Business Arcade, Shahra-e-Faisal, and Karachi not later than 48 hours before the time of the meeting.
- For attending the meeting and appointing proxies, CDC account holders will further have to follow the guidelines as laid down in Circular No. 1 of 2000 dated January 26, 2000 issued by the SECP. The rights of members and their proxies exercisable during meetings and all other relevant information are listed in section 137 of the Companies Act, 2017.
- Shareholders are requested to notify the change of their address, if any, to the share Registrar of the Company.
- The annual report 2022 (CD) has been dispatched at the registered address of all the members. For future, as allowed under SECP Notification S.R.O.787(1)/2014, the annual report will be dispatched at the email address of those members who have provided their email address and consent to receive the annual report electronically. For this purpose, a standard request form is available at the company's web site www.smelease.com.
07
Directors' Report
The Board of Directors of SME Leasing Limited ("Company") is pleased to present the annual audited financial statements for the year ended December 31, 2022.
The Company
The Company was incorporated in Pakistan in July 2002 and acquired the status of the listed Company in December 2006. It is a subsidiary of SME Bank Limited, which holds 73.14% of the Company's shares. The Company is licensed to carry out leasing business as a Non-Banking Finance Company (NBFC) under the Non-Banking Finance Companies Rules issued by the Securities and Exchange Commission of Pakistan ("SECP").
The Company's core objective is to extend the lease and working capital financing facilities to small and medium enterprises in the country.
Operational Review
Due to funding constraints, the Company remained focused on its aggressive strategy of recoveries from its portfolio and writing new good-quality leases with the target of minimum default. During the year, total recoveries amounted to Rs. 80.622 million were made whereas fresh leases of Rs. 14.983 million (Gross) were written. Out of a total recovery of Rs 80.622 million, Rs 52.719 million were from chronic NPLs. Over the last five years, the default rate in the new business has remained low.
The only source of funding at the disposal of the Company is a credit line of Rs 150 million from the Parent Company, SME Bank Limited, which has almost exhausted, and as of December 31, 2022, the outstanding balance was Rs 139.176 million. The Company manages its expenses to curtail losses.
Financial Review
2022 | 2021 | ||||||
------------------- Rupees | ------------------- | ||||||
Revenue | 20,997,856 | 21,393,608 | |||||
Expenses | (72,527,457) | (62,579,566) | |||||
Operating (loss) before reversals | (51,529,601) | (41,185,958) | |||||
Total reversals | 53,022,235 | 28,054,207 | |||||
Profit/(Loss) before taxation | 1,492,634 | (13,131,751) | |||||
Taxation | (262,615) | (267,420) | |||||
Profit/(Loss) after taxation | 1,230,019 | (13,399,171) | |||||
Profit/(Loss) per share - basic and diluted | 0.04 | (0.42) | |||||
The revenue from operations decreased by 1.85% due to the maturity of leases and less business written during the year. Administrative expenses recorded an increase of 10.95% due to inflation. The financial charges recorded an increase of 27.69% due to an increase in the benchmark rate used for the financing.
08
Annual Report 2022
Key Ratios
5.00
4.00
3.00
2.00
1.00
- | |||||||||||||
-1.002022 | 2021 | 2020 | 2019 | 2018 | 2017 | ||||||||
-2.00 | |||||||||||||
-3.00 | |||||||||||||
Earning Per Share (Rs) | Revenue Per Share (Rs) | Break up Value (Rs per share) | |||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||
Earning per share | 0.04 | -0.42 | -1.80 | -1.12 | -0.67 | -0.7 | |||||||||||
Revenue per share | 0.66 | 0.67 | 0.69 | 0.83 | 0.98 | 0.86 | |||||||||||
Break up value per share | 0.25 | 0.2 | 0.61 | 2.41 | 3.49 | 4.16 | |||||||||||
Earning per share | Revenue per share | Break up value per share | |||||||||||||||
5.00 | 4.16 | 3.49 | |
4.00 | |||
2.41 | |||
3.00 | |||
2.00 | |||
1.00 | |||
- | 0.86 | 0.98 | 0.83 |
-1.00 | -0.7 | -0.67 | |
-2.00 | -1.12 | ||
-3.00 | |||
2017 | 2018 | 2019 |
Earning Per Share (Rs)
Break up Value (Rs per share)
0.61 | 0.2 | 0.25 |
0.69 | 0.67 | 0.66 |
-0.42 | 0.04 | |
-1.80
2020 2021 2022 Revenue Per Share (Rs)
Log. (Break up Value (Rs per share))
09
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Sme Leasing Ltd. published this content on 22 December 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 December 2023 07:14:35 UTC.