FROM THE YEAR 200l T0 2005

The company started its financial activities in the financial year 2000-2001 with The authorized capital of Rs 20 million with the expansion of time and growing Its activities the Company feels to increase its capital with extension to expand Its business successfully, So in 2002, the Company over comes its desire by increasing its authorized capital from Rs 20 million to Rs 70 million which is 350 % increment as against last year i,e, 2001 With the passage of time the Management of the Company struggle its best to make the Company the progressive one of the Country. Finance is the blood of any organization for Achieving the same purpose. In 2003, the Board of Directors feels that it is not possible for them to continue its operations with the 1imited capital. So in its General Meeting, it was decided to increase more authorized capital and the same was increased Rs 100 million which is 500% increment as against last year i,e, 2002 In 2004, the ratio remains the same when again BOD decided to increase its authorized capital due to expansion of  business In 2005, the total authorized Capital reached up to Rs. 200 million which is 1000 % increment as against preceding year.

Paid-up Share Capital of the Company

in very beginning when the Company newly starts its operation (in 2001) the paid up capital was only Rs.14 million With the expansion of authorized capital the Company issued more paid up capital In the year 2002, the Company issued Rs. 48 million shares to its share holders which were 343% increments against previous year. In 2003, the struggles of the management of the Company awarded by increasing Rs. 22 million of paid up share capital which is 500 % increment as against last year i,e, 2002. In 2004 the issuance of share capital of Rs. 85 million shows that the management of the company is in continuous of making the Company the developed one of the country. That is why in the year 2005, the paid up share capital of the Company is Rs. 120 million which is 858% as against preceding year.

Brokerage Revenue Of the Company

The total revenue of the Company in 2001 was Rs 2,549,700 when it started its function With the increasing its capital as well as spreading out the business, the total revenue reached up to Rs. 4,337,522 in 2002 which is 170 % increment as against last year, which shows the improvement of the Company. The increment of revenue of RS. 13,031,344 in 2003(which is 511% increments against year 2002) revealed that Company is in position to become the best one of the country.
The Total Revenue for the year 2004 at Rs. 29,349,926 was a new record and 1151% higher then the corresponding figure of last year. Now the current position is that the revenue for the year 2005 is Rs. 144,077,166 which is 5650% increment of new recorded year.

The operating expenses of the Company in the year 2001 were Rs. 2,851,591. In the year 2002, the increment of the same at 4,214,067 (148% increment as against last year) as compare to parentage increment of brokerage revenue as 170% revealed that management is making rigorous efforts to reduce  cost and increase revenue. In 2003, total operating expenses reached up to Rs 12,725, 194 which is 446% as against preceding year. The ratio show the expansion of business which is the result of increasing the profit and revenue. In 2004, the total operating expenses was Rs. 28, 239,066 which was 990% increment as against previous year. The more then 50% increment in that year as compare to last year indicates that the company’s revenue as well as profit is ultimately increase. Now current year operating expenses is Rs. 102,783,600 which is 3604% increment against previous year. That huge percentage increment shows that the management of the company tries is best boil increasing is profit and struggling to make it the developed one.

The liquid asset of any organization in capital market is deemed to be the blood of that.
The moment of the liquid assets is very in rapid in capital market; hence, the importance of the same can’t be ignored. The current ratio revealed the financial strength of any organization. Higher the ratio is favorable and lower the ratio is unfavorable. It indicate that the company has more current / liquid assets for investment purpose and has fewer obligation to pay off. It also indicate more inflow of liquid asset in fewer outflows of the same. It also indicates the management skill and performance of the finance department. In 2001, the current ratio of the company was 5%. In 2002, the current liabilities were only 1% of the current assets. It means that the company has more funds to invest as compare to the previous year. The year 2003, revealed the 17% of current liabilities which is result of increase of authorized as well as paid up share capital. The same case is also in the year 2004. The reduction in percentage of current assets and increment in percentage of current liabilities as against preceding year show that company has expanded as compare to previous year. It means that if the company is financially stable, has more funds and other rely upon it; they can easily sell their products or provide service to that company on credit basis, resulting the increase in current liabilities.

From looking on past results we can easily judge the future of the company the finance department is doing its best job for increasing the credit worth of the company.
the Finance department has a close watch on the performance of the company and in monthly management accounts it not only calculates the variance from the standard revenue targets but also give the financial advises for the improvement in the financial position of the company as well.
other important functions of finance department has been discussed lasted under the heading "Functions of finance department" in which the efforts of the department has been clearly mentioned which it is doing for improvement in financial structure of the company.

Securities (Pvt) Ltd.

SUMMARY

Darson Securities (PVT) Ltd is corporate member of the Karachi Stock Exchange and the Lahore Stock Exchange with a Paid-up capital of Rs. 85 million. The primary activity of the company is equity trading. The company has eight branches in Pakistan, with head office at Lahore, Corporate office at Karachi and regional office at Gujranwala and Multan, others sales office include one in Lahore and three in Karachi. Darson Securities is majority own subsidiary of Dollar East own subsidiary of Dollar East group, a well diversified business family with active interest in money exchange, equity broking, software development, educational institution, imports/ distribution and gold chain manufacturing.

MISSION

Darson Securities mission is to become Pakistan’s leading Brokerage house, focusing on equity and debt organization and distribution, through value-added products targeted at various institutions, and high net worth individuals. By combining the activities of equity brokerage and investment advisory, the company will be able to conduct diverse activities including equity organization, debt distribution, fund management, etc. It is also in the process of obtaining an Investment Advisory License from the SECP. This license will entitle the Company to undertake all from of advisory service including ones related to fund management.

LEGAL STRUCTURE AND OWNERSHIP

Darson Securities (PVT) Limited incorporated on January 1998. at Lahore, Pakistan . It is a limited liability company formed under the Companies ordinance 1984. The company was earlier incorporated as Darson (PVT) Limited in March 2000and the name was subsequently changed in April 2000. The Paid up capital of the company was R s 20 Million with corporate membership in Lahore Stock Exchange. Darson also acquired a corporate membership at the Karachi Stock Exchange and has been operational since September 23, 2002. The Paid Up capital of company now stand at R s. 85 Million, with the authorized capital at R s. 100 Million. The sponsors realize the need to enhance the capital base farther and have decided in principle to increase it to R s 150 Million next year.

SPONSORS AND MANAGEMENT

Darson is sponsored by a well-established group of Pakistan; commonly know as Dollar East Group, having diverse and very successful business ventures in various fields including the financial sector, software development, educational institution, import/distribution and gold chain manufacturing. Mr. Anwar Dar is the chairman of the group. Presently sponsor directors own majority of the company’s equity equally, while the remaining portion held by Mr. Ghayas Uddin former executive of Citibank. The Business partners are committed to the success of  Darson Securities and have agreed to give it first preference for all corporate finance deals.

PRODUCT OFFERING

The growth and structural change in Pakistan’s financial and capital markets have created significant opportunity for properly focused “financial house”. Darson Securities objective is to become a highly specialized equity corporate finance house, and public sector of Pakistan.
Darson has primarily focused on equities sales and trading and has been successfully offering brokerage facilities to hundreds of satisfied retail clients and some of the institutions namely.

1                        ABAMCOO CAPITAL FUND
2                        ABAMCOO COMPOSITE FUND
3                        ABAMCOO GROWTH FUND
4                        ABAMCOOSTOCK MARKET FUND
5                        ATLAS FUND OF THE FUNDS
6                        ATLAS INCOME FUND
7                        ATLAS STOCK MARKER FUND
8                        BSJS BALANCE FUND LTD.
9                        FIRST CAPITAL MUTUAL FUND
10                      JAHANGIR SIDDIQUI INVESTMENT BANK
11                      KASB BANK LTD
12                      NDLC –IFIC
13                      NOMAN ABID & CO
14                      PAKISTAN CAPITAL MARKET FUND
15                      PAKISTAN INCOME FUND
16                      PAKISTAN PREMIER FUND
17                      PAKISTAN STOCK MARKET FUND
18                      PAKISTAN STRATEGIC ALLOCATION FUND
19                      UNIT TRUST OF PAKISTAN
20                      UTP – INCOME FUND
21                      UTP – ISLAMIC FUND

The company is committed to provide excellent and personalized professional service to all its clients. We believe that quality research is vital for the success of any brokerage house and we aim to provide objective and unbiased market research to our valued client.
Its product range has been structured such that a sustained growth in revenues can be maintained.
Product offering will include the following:

§         Equity Brokerage
§         Equity Research
§         Portfolio management
§         Investment Advisory
§         Debt Advisory
§         Asset Management
§         Corporate Finance 

Darson has eight branches operating in Pakistan. Company’s head office and one regional office is located in Lahore and regional office are in Gujranwala and Multan (Punjab). Obtaining a seat on the KSE was an important milestone for the company, as the KSE is Pakistan’ s largest stock exchange in addition most of the capital market operations and large financial institution concentrated in the city. Therefore, the recently established Karachi office has been given a status of company’s corporate office to cater the needs of institutional clients and strengthen the company’s market operations. Others four one in the Lahore and remaining three in Karachi.

FUTURE PLANS
ON LINE TRADING

Being a major retail brokerage house at Karachi stock exchange, Darson would like to venture into the online trading to provide instant execution and quality research to the ever-expanding retail clientele, We are in touch with KSE management on this issue and will soon launch our on line stock trading portal.

RESEARCH

In today’s fast paced environment timely information is the key to success. At Darson, we are in process of setting up full fledge research with major focus on technical and fundamental research, Recently, We hired Senior analyst to set up a research department and also to look after our new intuitional sales desk

INSTITUTIONAL SALES DESK

The institutional clients largely fuel the KSE-100 index’s rise from 1100 to 5600 plus levels. The entry of pension funds, asset management companies, bank and active buying.
From mutual funds helped KSE-100 to cross all time high at 5600 and scale new peaks above 6000 levels. To serve the diverse needs of various institutional clients, we are in process of setting an institutional sales desk with major focus on stock trading and debt instruments.

ON LINE FOREX TRADING

Our sponsor, Dollar East, one of the largest exchange companies of the Pakistan, contemplating to setup an on line foreign exchange website to help the importers, exporters, and general public to buy sell remit or send money overseas online. We are in touch with State Bank of Pakistan on this issue and once granted permission will launch a secure website.

COMMODITY TRADING

Darson is also member of commodity exchange of Pakistan, once the exchange starts is operating, Darson will be able to commence operating as we have sufficient experience in Gold trading an forex (Dollar East).

Dollar East is Pakistan’s leading money exchange company with 12 authorized branches throughout the country. The company was the first in Pakistan to get a license to start business in 1992. Dollar East has also now become the first company to get an NOC from the State Bank of the Pakistan to establish an exchange company. The exchange company has a paid up capital of R s. 100 million and will soon launch its operations after fulfilling the necessary formalities. After the establishment of formal exchange company, Dollar East will deal in foreign currency notes, coins, postal notes, money orders, bank draft. Traveler’s cheques and transfers in a regulated environment. Moreover, the State Bank would extend current account and SGLA facilities to Dollar East and would allow it to buy and sell foreign exchange with other exchange companies and bank in the interbank market. In addition, the company will be allowed to open currency exchange booths all over the country at public places such as airports, hotels, etc.

Gujranwala Institute of future Technologies.

GIFT is the group largest undertaking in the provision of quality education in Pakistan. It is registered as a private limited company with a paid up capital of R s. 100 Million. The state of the art campus at Gujranwala has started its operation offering coursed in modern disciplines such as computer Engineering, E- Commerce and Business Administration. Etc. Punjab Education has also granted UNIVERSITY status.

Importers of Poultry Biologics and Pharmaceutical.

Bio- Vet is the single largest distributor of poultry vaccines and other related medicines in Pakistan as well as fast countries in the middles East, Established in 1984, the company has successfully expanded its operations having 12 offices throughout Pakistan.

Chain Designer is Pakistan’s largest manufacturer of quality gold chain. The company has captured a big share of the domestic Jewelry market and its products are exported as well. The company was established in 1999, will a paid-up capital of R s. 20 million.