Annual Report 2012 - Lahore Stock Exchange

Financial Notes8 Liabilities against assets subject to finance leaseThe amount of future minimum lease payments along with their present value and the periods duringwhich they will fall due are:2012Not later Later than onethan oneyearbut not laterthan five years Total----------------(Rupees in thousand)----------------Minimum lease payments 483 281 764Future finance charge 75 13 88Present value of minimum lease payments 408 268 6762011Not later Later than onethan one but not lateryear than five years Total----------------(Rupees in thousand)----------------Minimum lease payments 499 832 1,331Future finance charge 157 112 269Present value of minimum lease payments 342 720 1,062Salient features of the leases are as follows:Discounting factor 15.16%-17.3% 16.8%-17.3%Period of lease 36 months 36 monthsSecurity deposits 20% 20%8.18.2The Company has entered into a lease agreement with a commercial bank for lease of one vehicle.The liabilities under these arrangements are payable in monthly instalments. Interest rates implicitin the lease is used as discounting factor to determine the present value of minimum leasepayments.Lease agreement carries renewal option at the end of lease period and the Company intends toexercise its option to purchase the leased asset upon completion of the lease term. Residual valueof the leased asset has already been paid at the inception of the lease in the form of securitydeposit. There are no financial restrictions imposed by lessor. Taxes, repairs, replacements andinsurance costs are borne by the lessee.ANNUAL REPORT 2011-12 117