ISLAMABAD, Nov 1: The shareholders of Saudi Pak Leasing Company at its 13th Annual General Meeting here on Friday considered and approved the audited accounts and payment of cash dividend at 7.5 per cent for the year ended June 30, 2003.

While reviewing the performance of the company, the chairman of the Board, Muhammad Rashid Zahir who presided over the meeting informed the shareholders that the company was able to achieve lease disbursement of Rs1.01 billion in 2002-03, 65 per cent up over Rs614 million in the previous year.

Plant and machinery accounted for major portion of disbursements. Total revenues amounted Rs352 million in 2002-03 which were 10 per cent lower than the previous year. The reduction in revenue was primarily attributable to lower internal rate of return charged on new leases because of overall declining rates of markup in the economy.

Rashid apprised the members that conscientious efforts were made to reduce the cost of funds which resulted in marked reduction of Rs98.209 million or 30 per cent in financial charges over the previous year.

This was made possible by renegotiation of rates with existing lenders, raising fresh borrowing at competitive rates and rationalization of expected return on Certificates of Investment. At the same time, a proper balance was maintained between long- and short-term borrowing to avail the benefit of lower rates on short-term borrowing. The term finance certificates (TFCs) issued in 1998 were fully redeemed during 2002-03, he added.

He said that the company followed prudent policy on sectoral exposure in its lease operations. As a result, exposure to any single sector did not exceed 25 per cent.

The entity rating of single A for long-term and A- one for short-term assigned by JCR-VIS have been maintained, he added.