KARACHI, Sept 25: National Development Leasing Corporation Limited (NDLC) posted loss of Rs82 million for the year ended June 30, 2002, which the company said was the first deficit in its 18 year history.

In a statement on Tuesday, NDLC stated that to follow best corporate practices, the board of directors had taken the decision to recognize weaknesses inherent in the company’s lease portfolio. “Therefore, as of June 30, 2002, the company has either provided for or suspended income on all leases that were required to be so treated,” the company noted, adding that as a result of those two measures, the operating profit of the company had stood reduced by Rs262 million for the year ended June 30, 2002.

NDLC contended that the declaration of net loss of Rs82 million was a sign of strength that showed that the company could absorb such losses and yet remain well capitalized and liquid. After accounting for the loss, NDLC said, it remained under-leveraged at 3.2 times, compared to a maximum allowable of 10 times. “Such a low gearing is one of the primary opportunities in the company, as it will allow leveraging of capital to generate future revenues without a call for further capital from shareholders,” the company said and added that NDLC was actively seeking an expansion in the scope of activities either through a meaningful acquisition of an existing financial institution or through additional activities of the nature that are expected to be allowed to non-banking finance companies.