Director's Report
The Directors are pleased to present the 12th
Annual Report along with the Auditors' Report for the year ended June
30,2001.
FINANCIAL RESULTS
The Exchange recorded a surplus (before tax) of Rs. 1.47 million which
represents a marked improvement over last year's surplus of Rs. 0.90
million. This improvement was the result of 36.90 % increase in gross
revenue from Rs. 10.76 million in the year 2000 to Rs. 14.73 million in
2001.
The main source of revenue was fees charged on annual renewals of listings
and additional listing fees charged on bonus and right issues of companies
listed on the Exchange as well as trading fee received from the Members.
The year under review witnessed a rise of 34.50% in expenditure from Rs.
9.86 million in 2000 to Rs. 13.26 million in 2001. The Major increase took
place under the heads depreciation (101%), seminar, meeting & entertainment
(111.5%), insurance (80%) and utilities (37.4%). Besides amounts of Rs. 0.66
million and Rs. 0.091 million were also incurred during 2001 towards
software maintenance charges and Safe membership fee respectively.
ACHIEVEMENTS DURING THE YEAR
Apart from the financial improvement during the year under review
the ISE also made a score of landmark achievements in the areas of
development and reformation. On top of the ISE's achievements is the listing
of Hubco on our Exchange, a long due demand of our members. This remarkable
feat was achieved as a result of personal efforts and interest taken by the
Chairman, SECP. Certain Articles were amended to incorporate changes in the
mode of nominating non-member Directors, reduction in the tenure of
Chairman/Directors, SECP's prior consent to the appointment/renewal/removal
of Managing Director. Another couple of vital developments during the year
under review brought our Exchange at par with bourses of the developed
countries. First, the introduction of T+3 trading system which has replaced
the traditional balance order settlement in line with other two Exchanges of
the country. Second was the materialization of the National Clearing and
Settlement System by incorporation of the National Clearing Company of
Pakistan Limited. The integrated system of "Clearing and Settlement" is
likely to come on stream by end this year.
CHANGES IN MEMBERSHIP DURING THE YEAR
Following is the list of new members admitted to the Islamabad Stock
Exchange during the year under review by way of nomination of the Membership
or obtained Membership through bid in open auction of defaulters' seats.
Code
No |
Members' Name |
Date of Election
By the BOD |
In Place of |
ISE-023 |
Mr. Rafaquat Ali Chaudhry |
03-03-2025 |
Mr. Muhammad Yasin |
C-511 |
Lasani Securities (Pvt) Ltd. |
02-06-2024 |
Seat vested with the Exchange on account of default of P S M (Pvt)
Ltd. |
ISE-032 |
Malik Abdul Qayyum |
23-10-2024 |
Mr. Muhammad Hanif Dharwarwala |
ISE-047 |
Mr. Muhamamd Munif Kapadia |
26-10-2024 |
Seat vested with the Exchange on account of default of Mr. M.
Ajmal Khan |
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LEGAL CASES
a total of 16 legal cases filed by/against ISE which are pending in
different courts.
ELECTION OF DIRECTORS AND CHAIRMAN
The Directors and the Chairman retire on the date of Annual General Meeting
and election would be held at the AGM in accordance with the provisions
prescribed in the Articles of Association of the Islamabad Stock Exchange
(Guarantee) Limited.
AUDITORS
The present auditors, M/s S. M. Masood & Co. Chartered Accountants, stand
retired and being eligible have offered themselves for re-appointment as
auditors of the Exchange for the year 2001-02
ACKNOWLEDGEMENT
The Board of Directors is pleased to place on record its appreciation to
Securities & Exchange Commission of Pakistan for their continued guidance
and support to the Islamabad Stock Exchange.
The Directors take this opportunity to thank the Members for the confidence
and trust reposed in them. The Directors also wish to express their
appreciation to the Exchange staff for their dedication and hard work.
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