NOTES TO THE REPORTS FOR THE 12 MONTHS ENDED JUNE 30, 2003
3. MONEY AND BANK BALANCES 3.1. RETURN ON THESE SAVINGS REPORTS IS GAINED AT RATES WHICH RANGE FROM 2 per cent TO 5 percent
4. SHORT-TERM LOANS 4.1. These express loans to customers for a time period of as much as 12 months on mark-up basis and they are guaranteed by way of lien on Certificates of Investment. The price of mark-up ranges from 14% to 21.5percent per year.
4.2. Included in these are cash market placements with different banking institutions along with other banking institutions. Return on these placements ranges from 5% to 13percent.
5. OPPORTUNITIES throughout the year that is current the business offered four federal government securities for Rs 182.288 million. The cost that is amortised of federal federal government securities ended up being Rs 159.394 million in addition to revenue regarding the disposal of those securities amounted to Rs 22.894 million.
The administration chose to offer these securities to be able to realise the gain arising on these securities underneath the reduced rate of interest environment.
As at June 30, 2003 the investment that is remaining of business in federal federal government securities amounted to Rs 52.634 million.
This investment has been reclassified as ‘held for trading’ and it is calculated at reasonable value. An increase of Rs 12.946 million happens to be credited to your loss and profit account in respect with this investment.