Al Zamin Leasing Corporation

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
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).

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.

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 Investment
Bank 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

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 — the
leading 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

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.

Vision 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”

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"

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 of
handling 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.
Mr. Abid Raza Zaidi
Mr. Abid is working as SVP - Treasury & Banking Relations. He is the

member 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.

BOD’s
Board of Directors of Cres Lease comprise of seven members. The current

composition of the board is as under:

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.
Mr. Zafar Iqbal
☑ Extend market reach sectorally and geographically with quality of
service and portfolio.
☑ Operate within the regulatory framework for NBFCs.
Mr. Basheer Ahmed Mr. Muhammad

Zahid Mr. Javeed A. Callea
Mr. Muhammad Mr. Firasat Ali Mr. Syed Shanawaz

Moiz ul Haque

Functions of Al Zamin Leasing

Basically 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 COI’s 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.

Accessibility:
☑ Our COIs are ideal for individuals, corporate bodies, firms, trust, societies,
NGO’s 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 Amou Payable

nt
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


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

nt
2 Year 13.00% 1,083 Monthly

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

nt
2 Year 14.50% 29,000 On Maturity

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.




A.Lending of Money
1) 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
Let’s 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”

i. Application Form
ALZAMIN 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: info@sapphirefibers.com.pk
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

Sector: Textile
Group Name: Sapphire Textiles
Subsidiaries / Associated / other companies:
Name Business Legal status Address

Sapphire Textile Textile Public limited Faisalabad
Details of Directors
Name Father/husba N.I.C# Residential Designati Holdin Owne

nd name Address g%
on Rente
d/
&Contact
Mr. MR. 34502- 365 D Defense Director 22% Owne
Nadeem Abdullah 365933- area Lahore d
Abdullah
Mr. Amir MR. 6
34502- 366 D Defense Director 15% Owne
Abdullah Abdullah 3362658- area Lahore d
6
Mr. Yousuf MR. 34502- 367 D Defense Director 12% Owne
Abdullah Abdullah 6598569- area Lahore d
6
Details of Lessors:
Name Branch Lease item Amount Principal Lease Reply

o/s
period
OR and
Rental maturit
O/S y date
Al Zmain Gulber CNC 2M 2000000 36

Month

Details of Lenders: (Banks, DFls, Investment Banks etc)
Name of Branch Type of Limit Principal o/s Date of Reply

Institution Facility Outstanding
Al Zamin leasing Machinery 2 Million 15-04-
lease
2009
Details of Trade Customers:
Name Contact address telephone % of sale Reply

person
Saddiqiue Purchase Factory 041- 15% He is

Fabrics Manager 6234785 satisfy
with the
Sapphire
Fibers
limited
Aslam MD Whole 042- 10% He is also

Clothed Sale 6321475 satisfy
dealer 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

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”

Description of Asset:
Name of cost suppliers conditions Code from Status of

assets selection assets
CNC 2 million Pak New Ready for

machine machinery 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 Lahore
Account 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

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 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:
Financial highlights of the company
Income Statement
2008 2007
Net Sales 6511530833 5641730651
Gross Profit 1090932726 953781025
Operating Expenses 58756488 5028969820

77
Operating Profit 1731268939 734762994
Financial Charges 432079660 300807242
Provision for Tax 83752510 97688236
Net Profit 1339171649 451803795
Depreciation 2088713554 1865923623

BALANCE SHEET
2008 2007
Proprietor's Capital PROFITABILITY
350000000 350000000
Reserves
Growth in Sales 3402930900 4765280458
15.41%
Inappropriate Profit C/F 3944506236 2696477738
Net Worth
Gross Profit Margin 7521897136 7636758796
16.75% 16.88%
Long Term Loan / Inter Group Finance 3122300 4475200
Operating Profit Margin 26.58% 13.02%
Deferred Liability 182061309 165453676
Net Profit Margin 20.56% 8%
Current Liabilities 3572290479 2630169503
Return on Fixed Assets 19.64% 8.87%
Current Assets 3546210057 2727047007
Return on Total Assets 10.83% 4.10%
Net Working Capital -26080422 96877502
Total Debts 1264728566 74096643
Fixed Assets
Owners Index
8812706124 8179977335
Total Assets 12358916181 11007024342
Inventories 2176993509 1429555332

ReturnReceivable
Trade on Equity 15.80%
875712482 5.50%
859682075
Earnings per Share
Advances/Prepayment/Deposit 76.52
6964071 25.82
15350546
DividendMaturity
Current per Share(Rs.)
of LTL 1.25
207976301 1.3
227976299
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

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

Comparative Analysis
Items 2008 2007 increase/

decrease
sale 6511530 5641730 Increase

833 651
gross profit margin 16.75% 16.88% Decrease
operating profit 26.58% 13.02% Increase

margin
net profit 20.56% 8% Increase
working capital - 9687750 Decrease

2608042 2
2
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

Operating Chart


Form 29

Form A
To,
The Secretary,
Copyright Board,
Karachi.
Sir,
(i). In accordance with section 4(2) of the Ordinance, We hereby refer the
matter 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:

------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
--------------
-------------------------------------------------------------------------------------------------------
--------------
Name and address of the Referrer:

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

Name and address of the Advocate of Referrer:

------------------------------------------------------
-------------------------------------------------------------------------------------------------------
--------------
-------------------------------------------------------------------------------------------------------
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Signed: ------------------------------
Status and designation of signatory: ----------------------
Date: ----------------------------------

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 Description Amount Total

y
CNC Machine 200000 20,00,000
0
1

Signature: 20,00,000
/-

Proposal for lease approval to Management

R

(
Lease Terms:
Lease Asset CNC Machine

Lease Amount 20,00,000
Deposit 10 % 200000
Lease Period 3 Years
Frequency of rentals 1 month
Grace Period Nil
Monthly Lease rental (01-36) 55000
Documentation charges 5000
Other 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”

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 0.89:1
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.
(b)Long Term Debt / Equity Ratio 60:40 i.e. debt being 1 .5 times or 150% 39%/61%
of 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 in
the 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
ginning and rice husking factories shall also be

(c )C IB R ep ort When considering proposals for fund/non-fund

based facility exceeding one million rupees, NBFCs
Clear
should give due weightage to credit report relating
to the borrower and his group obtained from Credit
Information 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
subsidiary,
lf CIB not clear than record reasons have control
and comments or lease
as to why hold should
substantial
be executed:
CONCLUSION AND GROUNDS FOR APPROVAL: MEMORANDUM TO

MANAGEMENT COMMITTEE:
To: Lease Facility 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:
☑ 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.

Agreement
IRREVOCABLE 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 both
parties in which each and every term and condition is written and agreed.

Authorized Agent Lessee’s signature
Mehboob ALam M. Yusuf Abdullah
Witness 1 Witness 2
Ali Khalid K.Sultan

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.

Monthly rental can be calculated by multiplying Net financing amount of

vehicle (cost - down payment) with the following factors:
Lease Period 3 4 5 years

years years
Lease Rental Factor 0.037 0.0314 0.02875

03 5
Insurance Installment 0.003 0.0029 0.00285

Factor 10 0
Total Rental 0.040 0.0343 0.03160

13 5
Business Person Salaried Person
☑ Minimum ☑ Permanent Service

experience of 3 of atleast 2 years
years
☑ Lease Rental Per
☑ Average Credit month should not
Balance to be 4- exceed 1/3rd of net
times of monthly- taken home
rental salray/income
Documents Required
Business Men/Self Salaried Person

Employed
• NIC copy • NIC copy

• Photograph • Photograph
• Visiting Card/Letter • Salary slip/Salary

Head Certificate
• 6 months Bank • 6 months Bank

Statement Statement
• N.T.N Certificate
copy

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
Single 1 Child
Mariatal Status No. of Children
Eldest Child's
School Name
Name
School Address Class
Occupation Information
Profession
Employer/business Name
Employment/Business Address
Business
Owned
Premises
Rented Other
Designation Working since
Phone # Salary/Income

Members of Professional Association
Other Information
No
Do you have a Credit Card?
Name Since
No
Are you a member of any Club?
Name Since
Banking with Branch
A/c #
Reference 1:
(Neighbour)
Name
Address
Business/ Work Address
Phone # Office
NIC #
Reference 2:
(Office Bearer)
Name
Address

Phone # Office
NIC #

Vehicle & Lease Information
Vehicle
Total Cost
Name
Down Term of Lease
Payment (months)
* I hereby declare thet the above information in correct and complete & I
authorise CresLease to verify the same

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
Waleed Abdur Sattar

Name S/o, D/o, W/o
34101-6632569-6 22365852
NIC # NTN
LD-7777 G T road G 055-362596

Address Phone #
Gujranw ala Cant

Owner/Tenant/Family Residence
2002 7 years
Living since Years/Months
16-08-1970 MBA
Date of Birth Qualification
Married 3 Children
Marital Status No. of Children
Eldest Child's Kashif saeed APS

School Name
Name
Gujranw ala Cant 12
School Address Class
Occupation Information
business man
Profession
brothers engerrings
Employer/business Name
small estate 2
Employment/Business Address
Business small estate 2 yes

Owned
Premises

Rented Other
MD 1999
Designation Working since
055323265 1 lac
Phone # Salary/Income
Members of Professional Association
Other Information
No
Do you have a Credit Card?
Name Since
No
Are you a member of any Club?
Name Since
Banking with Branch
A/c #
Reference 1:
(Neighbour)
Ali Khalid
Name
Model tow n
Address
KPS
055-985632 055-652321
Phone # Office
31425-6322569-3
NIC #
Reference 2:
(Office Bearer)

Aslam Baig
Name
Gujranw ala Cant

Address
master tiles
055-3214583 055-268512
Phone # Office
32256-62325698-
NIC #
Vehicle & Lease Information
Suzuki Liana 939000

Vehicle Name Total Cost
93900 Term of Lease 36

Down Payment
(months)
* I hereby declare that the above information in correct and complete & I
authorize Al Zamin leasing to verify the same

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%

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


RE
CNIC (for Individual)
1 Taxpayer's Name W
2 Bussines Name C
Registration
3 Business Address
4 Res. Address
5 E-Mail Address b
Financial Institution of Pakistan
6 Principal Activity Page 62
Proposal for lease approval to Management

R
(
Lease Terms:
Lease Asset Suzuki Baleeno

Lease Amount 1124264
Deposit 10 % 112426
Lease Period 2 Years
Frequency of rentals Advance
Grace Period Nil
Front end Fee Nil
Monthly Lease rental (01-24) 46844.33
Documentation charges 3000
Other charges Nil
IRR Kibor of 6 month + 6%
Market Reputation:
Good: Yes
Satisfactory:
Unsatisfactory:
Credit worthiness:
Good: Yes
Satisfactory:
Unsatisfactory

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 2:1
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.
(b)Long Term Debt / Equity Ratio 60:40 i.e. debt being 1 .5 times or 150% 100% equity
of 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 in
the 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

(c )C IB R ep ort When considering proposals for fund/non-fund Clear

based facility exceeding one million rupees, NBFCs
should give due weight age to credit report relating
to the borrower and his group obtained from Credit
Information 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
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.
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.

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 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 both parties
in which each and every term and condition is written and agreed.
Authorized Agent Lessee’s signature
Witness 1 Witness 2

House hold appliance

Al 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 your

family 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.

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.

Future Planning
Al 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.

Al Zamin Leasing Corporation

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Al Zamin Leasing Corporation

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

The modern law of landlord and tenant in common law jurisdictions

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

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

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

Financial Institution of Pakistan Page 3

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

At present 32 leasing and 8 modaraba companies are members of

Financial Institution of Pakistan Page 4

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

National Development Leasing Corporation was established in 1984

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

First Habib Modaraba was floated in 1985 as a multipurpose and

Financial Institution of Pakistan Page 5

Security Leasing Corporation commenced its operations in May 1995

Sigma Leasing Corporation commenced its business in January 1997.

Financial Institution of Pakistan Page 6

ALZAMIN LEASING CORPORATION

Al-Zamin Leasing Corporation Limited (formerly Crescent Leasing

The prime business of the company is Leasing & Investment Finance

Financial Institution of Pakistan Page 7

Financial Institution of Pakistan Page 8

"To participate prominently in the economic and social development of

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

Financial Institution of Pakistan Page 9

Mr. Syed Shahnawaz Ahmed Rizvi

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

Mr. Syed Shahid Owais

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

Mr. Abid Sagheer Farooqui

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

Mr. Abid Raza Zaidi

Mr. Abid is working as SVP - Treasury & Banking Relations. He is the

Mr. Naeem Baig

Mr. Tahir A. Abbas

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

Mr. Syed Razi Aziz

Financial Institution of Pakistan Page 11

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

Financial Institution of Pakistan Page 12

Mr. Basheer Ahmed Mr. Muhammad

Mr. Muhammad Mr. Firasat Ali Mr. Syed Shanawaz

Financial Institution of Pakistan Page 13

Functions of Al Zamin Leasing

Financial Institution of Pakistan Page 14

Certificate of Investment Plan

✔ Convenient denomination to suit your requirement

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

Tenure Rate Amou 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

Financial Institution of Pakistan Page 16

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

COI Earn Monthly Profit

Tenure Rate Amou 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

Financial Institution of Pakistan Page 17