NIB d2011 PDF

Moving ahead with focus
NIB Bank Limited Annual Report 2011
Contents
02 03 05 09 14 15 17 18 19 20
Company Information
21 23 103 104 105 106 107 108 110 187
Unconsolidated Cash Flow Statement Notes to the Unconsolidated Financial Statements Auditors Report to the Members on Consolidated Financial Statements Consolidated Statement of Financial Position
Notice of Annual General Meeting
Directors Report to the Shareholders
Statements of Compliance and Internal Controls Auditors Review Report on Statement of Compliance Auditors Report to the Members on Unconsolidated Financial Statements Unconsolidated Statement of Financial Position
Consolidated Profit and Loss Account
Consolidated Statement of Comprehensive Income Consolidated Statement of Changes in Equity
Unconsolidated Profit and Loss Account Unconsolidated Statement of Comprehensive Income Unconsolidated Statement of Changes in Equity
Consolidated Cash Flow Statement
Notes to the Consolidated Financial Statements
Pattern of Shareholding
Proxy Form
Annual Report 2011
Company Information
Board of Directors
Teo Cheng San, Roland Syed Aamir Zahidi Tejpal Singh Hora Asif Jooma Chia Yew Hock Wilson Najmus Saquib Hameed Muhammad Abdullah Yusuf Khawaja Iqbal Hassan Badar Kazmi Muhammad Abdullah Yusuf Syed Aamir Zahidi Najmus Saquib Hameed Ather Ali Khan Yameen Kerai First Floor, Post Mall F-7 Markaz, Islamabad Muhammadi House I.I. Chundrigar Road Karachi-74000. UAN: (021) 111 333 111 Email: info@nibpk.com URL: www.nibpk.com THK Associates (Pvt.) Limited Ground Floor, State Life Building No. 3 Dr. Ziauddin Ahmed Road Karachi-75530. UAN: (021) 111 000 322 M/s. KPMG Taseer Hadi & Co. Chartered Accountants M/s. Mandviwalla & Zafar Advocates Long Term: Short Term: Rating Agency: AAA1+ PACRA Chairman Director Director Director Director Director Director Director President/CEO Chairman Member Member
Board Audit Committee
Company Secretary Chief Financial Officer Registered Office
Head Office
Email & URL
Share Registrar Office
Auditors
Legal Advisor
Credit Rating
Annual Report 2011

Notice is hereby given that Ninth Annual General Meeting of NIB Bank Limited (the Bank) shall be held at 10:00 am on Friday the 30th March 2012, at ICAP Auditorium, Institute of Chartered Accountants of Pakistan (ICAP) Building, G-10/4 Mauve Area, Islamabad to transact the following business: ORDINARY BUSINESS 1. 2. 3. To confirm the minutes of the 8th Annual General Meeting held on 30th March 2011. To receive, consider and adopt the Audited Accounts of the Bank for the year ended 31st December 2011 together with Directors' and Auditors' Reports thereon. To appoint auditors and fix their remuneration. M/s. KPMG Taseer Hadi & Co., Chartered Accountants have offered themselves for the re-appointment.
SPECIAL BUSINESS 4. To grant post facto approval to the payment of remuneration fixed by the Board for the non-executive directors, in terms of State Bank of Pakistan Prudential Regulations # G-1(C)(2) for Corporate / Commercial Banking and to pass the following resolution. RESOLVED that post facto approval for payment of remuneration fixed by the Board for non-executive directors in terms of State Bank of Pakistan's Prudential Regulation # G-1(C)(2) for Corporate / Commercial Banking is hereby granted. 5. Any other business with the permission of the Chair.
A statement as required under section 160(1)(b) of the Companies Ordinance, 1984 is being sent to the shareholders with this notice. By Order of the Board Karachi 9th March 2012 Notes: 1. 2. Share Transfer Books of the Bank will remain closed from 22nd March to 30th March 2012 (both days inclusive). A shareholder entitled to attend and vote at this meeting may appoint another shareholder as his / her proxy to attend and vote. Proxies, in order to be effective, must be received at the Head Office of the Bank situated at Muhammadi House, I.I. Chundrigar Road, Karachi (Pakistan) not later than 48 (forty eight) hours before the time of meeting, and must be duly stamped, signed and witnessed. Shareholders are requested to notify any change in their addresses immediately to the Bank or Share Registrar, M/s. THK Associates (Pvt.) Limited, Ground Floor, State Life Building No. 3, Dr. Ziauddin Ahmed Road, Karachi (Pakistan). CDC Account Holders will further have to follow the under mentioned guidelines as laid down in Circular 1 dated the 26th January 2000 issued by the Securities and Exchange Commission of Pakistan: For attending the meeting: In case of individuals, the account holder or sub-account holder or investor account holder shall authenticate identity by showing his / her original computerized national identity card (CNIC) or original passport at the time of attending the meeting. In case of corporate entity, the Board of Directors' resolution / power of attorney with specimen signature of the nominee shall be produced (unless it has been provided earlier) at the time of the meeting. For appointing proxies: In case of individuals, the account holder or sub-account holder or investor account holder shall submit the proxy form as per the above requirement. Ather Ali Khan Company Secretary
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Annual Report 2011

The proxy form shall be witnessed by two persons whose names, addresses and CNIC Numbers shall be mentioned on the form. Attested copy of CNIC or the Passport, of the account holder or sub-account holder or investor account holder shall be furnished with the proxy form. The proxy shall produce his original CNIC or original Passport at the time of the meeting. In case of corporate entity, the Board of Directors' resolution / power of attorney with specimen signature shall be submitted (unless it has been provided earlier) along with proxy form to the Bank. STATEMENT UNDER SECTION 160(1) (B) OF THE COMPANIES ORDINANCE, 1984 NIB Bank Limited (NIB) was incorporated as a public limited company under the Companies Ordinance, 1984, to carry on the business of a banking company under the Banking Companies Ordinance, 1962. 1) REMUNERATION TO NON EXECUTIVE DIRECTORS AND CHAIRMAN As per State Bank of Pakistan's Prudential Regulation G-1(C)(2), the Banks / DFIs during a calendar year may pay a reasonable and appropriate remuneration for attending the Board or its Committee(s) meeting(s) to the non-executive directors and chairman, which should be linked to the actual number of Board / Committee meetings attended by an individual director / chairman. Furthermore, the scale of remuneration to be paid to the non-executive directors / chairman for attending the Board and / or Committee meetings shall be approved by the shareholders on a pre or post facto basis in the Annual General Meeting. During 2011 an amount of Rs. 6.792 million has been paid to non-executive directors. For the purpose aforesaid it is proposed that the resolution set out in the notice convening the Annual General Meeting of the Bank be passed as and by way of a Special Resolution.
Annual Report 2011

THE ECONOMY In 2011, Pakistan's economy suffered from the double impact of the global crisis and a drop in prices of its exports such as cotton. This had an adverse impact on the current account which went from a surplus of USD 841 mn in the first half of the calendar year to a deficit of USD 2,140 mn in the second half. Since there were also limited external flows, foreign exchange reserves reduced sharply from USD18.24 bn at mid year to USD 16.96 bn at year end which led the rupee to depreciate against the USD by 4.25% between June and December 2011. Recognizing the need to increase revenues, the Federal Board of Revenue took some significant steps in March 2011 to enhance tax revenue by withdrawing GST exemptions on some items, bringing sale of five zero rated sectors into the GST net and collecting flood surcharge on income from the corporate sector. These measures helped in increasing tax revenue by 27% in the second half of CY 2011 compared to the same period the previous year thus helping to reduce the fiscal deficit. At the same time the Government took steps to resolve the circular debt problem in the energy chain by converting power sector debt held by commercial banks into PIBs and T-bills. While this step provided respite to the power sector, it aggravated the fiscal deficit which was already high due to flood related expenditure and subsidies to the energy sector. The State Bank of Pakistan (SBP) taking comfort from declining inflation and lower borrowing by the Government from the SBP, reduced the policy discount rate by a cumulative 200 basis points in the second half of CY 2011 in order to spur growth of the private sector. Although inflation has declined from 17% to 9.75% between January and December 2011, risks to the economy remain on account of a deteriorating external account position due to a rising trade deficit and repayment of external borrowings, especially to the IMF. This will likely lead to a depreciation of the rupee, a widening of the fiscal deficit, and increased Government borrowing from commercial banks and the SBP. BANKING SECTOR Earnings of the banking sector showed robust growth in the 9 months ending September 2011 with profit after tax in aggregate growing by 59% in the period year on year. However, the stock of non-performing loans increased by Rs 66 bn during the first 9 months of the calendar year reaching Rs 613 bn as of September 2011. Banks generally adopted a cautious stance in extending credit in CY 2011 as witnessed by ADR dropping from 68% in December 2010 to 59% in December 2011. While this reduction has reducted the risk from credit defaults in a weak credit environment, it has made banks susceptible to lower earnings if interest rates decline. SBP's cutting of the policy rate by 200 bps in 2H 2011 will compress net margins going forward unless there is a substantial increase in lending. Liquidity position is expected to remain tight because of the Government's heavy reliance on commercial banks to finance the fiscal deficit. OPERATING RESULTS The Bank continued with its strategy of lending prudently and selectively, especially to the Consumer and SME segments until these segments show stability. The Bank restricted its incremental lending mainly to top tier Corporates and to Government entities for commodity finance. The Bank also took a number of steps to increase its low cost deposit base by developing customized transactional banking products, improving its service standards, cross-selling its products more effectively, and better leveraging its distribution network. Since repayment of instalment-based Consumer and SME loans exceeded new loan bookings, there was an overall reduction in the average loan outstanding in the year. Consequently this has led to Mark-up interest earned being reduced by Rs 2,236 mn between 2010 and 2011. Total deposits also declined as a result of a deliberate effort to reduce high cost deposits. The savings from lower level of high cost deposits coupled with the increase in current and savings accounts lowered the Bank's cost of funds to 6.83% in December 2011 from 8.13% in December 2010. Lower cost of funds reduced Mark-up expenses by Rs 1,366 mn between the two years. Net Mark-up income reduced by Rs 870 mn between 2010 and 2011. Lower Net Mark-up income was partially offset by higher Non Mark-up income which was higher by Rs 437 mn compared to 2010. This was contributed by an increase in fees, commissions and income from dealing in foreign currencies as well as dividends from the Bank's asset management subsidiary and the funds managed by it. Administrative expenses in 2010 were higher because of one-off restructuring costs. However, taking out these one-off costs, the recurring administrative expenses actually reduced by Rs 1,216 mn (20%) between 2010 and 2011.
Annual Report 2011

This was achieved by re-engineering of processes, and cost rationalization and limiting the rise in infrastructure expenses despite a high inflation environment. The Bank continued to make very good progress in managing its credits portfolio and NPLs. Credit provisioning reduced to Rs 2,355 mn in 2011 compared to Rs 9,873 mn in 2010. On an unconsolidated basis the Bank made a loss after tax of Rs 2,044 mn for the year ended 2011 against a loss of Rs 10,112 mn in 2010. On a consolidated basis the loss after tax was Rs 2,067 mn for the year ended 2011 against a loss of Rs 9,707 mn in 2010. NIB's rights issue was successfully closed in the third quarter of 2011 taking the paid up capital to Rs 103,029 mn. Net of share discount, goodwill adjustment and accumulated losses, net equity of the Bank at the end of the year is Rs. 13,584 mn with a Capital Adequacy Ratio higher than the SBP requirement. FUTURE OUTLOOK While the economic environment continues to be challenging, we are confident that by adopting a disciplined and focused approach we can continue to grow the Bank by leveraging the inherent strength of our franchise, extensive network, committed people and loyal customers. The Bank is aware that future growth and profitability is dependent on headline revenue growth. To this end the Bank is taking various steps like increased focus on Balance Sheet management, strengthening Risk management and investing in human resources to provide a strong foundation for growth. With these enablers we expect to execute a focused business strategy that should lead to sustained growth in our revenues and profitability. CREDIT RATING The Pakistan Credit Rating Agency (PACRA) has maintained NIB's long term rating at AA- (Double A minus) and short term rating at A1+ (A one plus) in June 2011, which denote very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments. The rating on NIB's term finance certificates issued in March 2008 was also maintained at A+ (A plus). CORPORATE GOVERNANCE During the year under review, the Bank is compliant with the provisions of the Code of Corporate Governance. Being aware of their responsibilities under the Code of Corporate Governance, the Board of Directors state that: The Financial Statements prepared by the management of the Bank, present fairly its state of affairs, the results of its operations, cash flows and changes in equity. Proper books of accounts of the Bank have been maintained. Appropriate accounting policies, except hereinafter mentioned, have been consistently applied in preparation of financial statements and accounting estimates are based on reasonable and prudent judgment. International Accounting Standards, as applicable in Pakistan, have been followed in preparation of financial statements and any departure there from has been adequately disclosed. The system of internal control is sound in design and has been effectively implemented and monitored. There are no significant doubts upon the Bank's ability to continue as a going concern. There has been no material departure from the best practices of Corporate Governance, as detailed in the listing regulations of Stock Exchanges and the Bank is following these meticulously. As of 31st December 2011, the value of investments of the Provident Fund (un-audited) was Rs 681.226 mn. No trading during the year in the shares of the Bank was carried out by the Directors, CEO, CFO, Company Secretary and their spouses and minor children. Dividend has not been declared for the year due to lack of earnings.
Annual Report 2011

Six years financial data for NIB unconsolidated is provided hereunder: SIX YEARS FINANCIAL DATA
Rs mn Advances Deposits and other accounts Total Assets Net Assets Share capital Net Mark-up / Interest Income Total Non Mark-up / Interest income Total Non Mark-up / Interest expense Profit / (Loss) before taxation Profit / (Loss) after taxation Basic / diluted earnings / (loss) per share (Rupees) 2011 60,844 85,488 154,794 13,677 103,029 2,079 2,152 4,945 (3,480) (2,044) (0.34) 2010 74,566 99,169 164,350 13,663 40,437 2,949 1,715 7,235 (12,622) (10,112) (2.50) 2009 84,021 93,920 208,119 41,528 40,437 5,400 1,682 5,243 644 691 0.17 2008 80,344 104,586 178,909 39,699 28,437 4,402 2,421 8,164 (10,998) (7,475) (2.63) 2007 81,932 116,671 176,872 36,453 22,018 2,004 927 2,146 (710) (490) (0.44) 2006 31,052 30,566 46,423 4,327 3,362 1,021 495 1,224 22 118 0.21
During 2011 seven Board meetings were held and were attended by the Directors as follows: Name of Directors Mr. Francis Andrew Rozario (resigned w.e.f. 31st July 2011) Syed Aamir Zahidi Mr. Tejpal Singh Hora Mr. Teo Cheng San, Roland Mr. Asif Jooma Mr. Muhammad Abdullah Yusuf Mr. Najmus Saquib Hameed Khawaja Iqbal Hassan Mr. Chia Yew Hock Wilson (appointed w.e.f. 10th November 2011) Total Meetings Eligible to Attend 3 7 7 7 7 7 7 7 2 Total Meetings Attended 3 6 7 7 7 7 6 7 2 Percentage 100% 86% 100% 100% 100% 100% 86% 100% 100%
Leave of absence was granted in case the directors were not able to attend the Board Meeting. INTERNAL CONTROL AND RISK MANAGEMENT FRAMEWORK The Board is pleased to endorse the statements made by the management relating to internal control and the risk assessment framework to meet the requirement of the State Bank of Pakistan (SBP) BSD Circular No. 7 of 2004, BSD Circular letter No. 2 of 2005 and Code of Corporate Governance issued by the Securities & Exchange Commission of Pakistan (SECP). The management's statements are included in the annual report. CORPORATE SOCIAL RESPONSIBILITY When our country was hit by the most devastating floods in 2011, NIB Bank had proactively organized free medical camps in the worst flood affected district areas of Badin, Tando Adam, Sanghar and other rural areas of Sind district. As was done in 2010, several NIB staff participated in this initiative with exemplary zeal and dedication that brought a team of doctors, paramedics, and volunteers along with medical supplies to the affected population. The 30 member relief team commonly found diseases of gastroenteritis, skin infections, typhoid, hypertension, and malaria during their visits, in partnership with the Serving Hands Organization (SHO).
Annual Report 2011

These relief efforts were made possible with the funds contributed by NIB staff, its majority shareholder and customer donations along with assistance received from a dedicated group of doctors and volunteers. NIB is committed to fulfilling its role towards corporate social responsibility and will continue to respond in every possible manner to alleviate the adversity being faced by over 8 million displaced people of Pakistan. AUDITORS The present auditors M/s. KPMG Taseer Hadi & Co., Chartered Accountants retire and, being eligible have offered themselves for re-appointment in the forthcoming Annual General Meeting. The Board of Directors on the suggestion of the Audit Committee recommends their appointment for the next term. PATTERN OF SHAREHOLDING The pattern of shareholding as at 31st December 2011 is included in the annual report. ACKNOWLEDGEMENT NIB Bank is grateful to its majority shareholder, Fullerton Financial Holdings, a subsidiary of Temasek Holdings of Singapore, who have repeatedly demonstrated their commitment to the Bank. NIB Bank is also very grateful to its customers who continue to demonstrate very strong loyalty to NIB. The SBP, SECP and other regulatory bodies have, as always guided the Bank well and have given their full support which is highly appreciated. The employees also deserve special thanks for persevering and supporting the Bank.
On behalf of the Board,
Teo Cheng San, Roland Chairman
Badar Kazmi President & CEO
Annual Report 2011
Statement of Compliance with Code of Corporate Governance For the year ended December 31, 2011
This statement is being presented to comply with Code of Corporate Governance contained in Listing Regulations of stock exchanges where the Bank's shares are listed and Regulation G-1 of SBP's Prudential Regulations. The Bank has applied the principles contained in the Code of Corporate Governance (CCG) in the following manner: 1. The Bank encourages representation of independent non-executive directors on its Board including those representing minority interests. At present all the directors are non-executive (as defined under CCG) except for the Chief Executive Officer. The directors have confirmed that none of them is serving as a director in more than ten listed companies, including the Bank. All the resident directors of the Bank are registered as taxpayers and none of them has defaulted in payment of any loan to a banking company, a Development Financial Institution or Non Banking Finance Company. None of the directors of the Bank are members of any Stock Exchange. A casual vacancy occurred during 2011 which was filled in as per regulatory requirements. The Bank has prepared a Statement of Ethics and Business Practices', which has been signed by all the directors and employees of the Bank. The Board has developed a vision/mission statement and an overall corporate strategy. Significant policies of the Bank have been prepared and approved by the Board. A complete record of particulars of significant policies along with the dates on which these were approved is being maintained. All the powers of the Board have been duly exercised and decisions on material transactions, including appointment and determination of remuneration and terms and conditions of employment of the CEO have been taken by the Board at the appropriate time. The meetings of the Board were presided over by the Chairman. The Board held seven meetings during the year. Written notices of Board meetings, along with agenda, were circulated at least seven days before the meetings. The minutes of the meetings were appropriately recorded and circulated. The CFO and Company Secretary attended all the meetings of the Board of Directors during the year. The Directors of the Bank have given a declaration that they are aware of their duties, powers and responsibilities. An orientation program was arranged for directors during 2011 on the subject of corporate governance in order to apprise themselves of their duties and responsibilities. The Board has approved the appointment of the Chief Financial Officer, Company Secretary and Head of Internal Audit and the terms and conditions of their employment, determined by the CEO, are duly authorized by the Board of Directors. The Directors' report has been prepared in compliance with the requirements of the code and fully describes the salient matters required to be disclosed. The financial statements of the Bank were duly endorsed by the CEO and CFO before approval of the Board. The directors, CEO and executives do not hold any interest in the shares of the Bank other than that disclosed in the pattern of shareholding. The Bank has complied with all the corporate and financial reporting requirements of the code. The Audit Committee comprises of three members, all of whom are non-executive directors (as defined under CCG). The meetings of the Audit Committee were held at least once every quarter prior to approval of interim and final results of the Bank as required by the Code. The terms of reference of the Committee have been formed and advised to the Committee for compliance. The Bank has an effective Internal Audit department. An Internal Audit Manual is approved by the Board. The Internal Audit department has conducted audit of branches and various departments of the Bank during the year.
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Annual Report 2011
Statement of Compliance with Code of Corporate Governance For the year ended December 31, 2011
18. The statutory auditors of the Bank have confirmed that they have been given a satisfactory rating under the quality control review program of the Institute of Chartered Accountants of Pakistan, that they or any of the partners of the firms, their spouses and minor children do not hold shares of the Bank and that the firm and all its partners are in compliance with International Federation of Accountants (IFAC) guidelines on code of ethics as adopted by the Institute of Chartered Accountants of Pakistan. The statutory auditors or the persons associated with them have not been appointed to provide other services except in accordance with the listing regulations and the auditors have confirmed that they have observed IFAC guidelines in this regard. During the year, the Risk Management sub-committee of the Board comprising of 3 members met 4 times, whereas the HR sub-committee of the Board comprising of 3 members met 2 times. We confirm that all the material principles contained in the code have been complied with.
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Date: 22 February 2012 Karachi
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Annual Report 2011
Statement on Internal Controls For the year ended December 31, 2011
Internal Control System Management acknowledges its responsibility for establishing and maintaining a system of internal control directly related to and designed to provide reasonable assurance to achieve the following objectives: Efficiency and effectiveness of operations Compliance with applicable laws and regulations Reliability of financial reporting
The bank is continuously adding to its internal control systems by enhancing the quality of processes, staff and IT infrastructure and will continue to do so to strengthen internal controls as it grows its business volumes and activities. The Bank is pleased to make the following disclosures on the components of internal control system: Control Environment 1. 2. 3. 4. 5. The Bank has written and implemented policies and procedures for most of the areas of the Bank's business, which have been approved by the Board of Directors. The Bank has adopted a mission/vision statement and corporate strategy, duly approved by the Board. A clear organizational structure exists which supports clear lines of communication. The management has defined roles and responsibilities of key management personnel. The Audit Committee, which comprises of non-executive directors, has written terms of reference and reports to the Board. It reviews the approach adopted by the Bank's internal audit department and the scope of, and the relationship with, the external auditors. It also regularly receives summary of reports from the internal audit department and the external auditors on the system of internal control and any material control weaknesses that have been identified and discusses the actions to be taken in areas of concern with the executive management. An effective internal audit system exists which is responsible for evaluation of internal control system on a continuous basis and reports directly to the Audit Committee. The Bank has adopted a statement of ethics and business practices that is signed by all employees. Furthermore this statement is annually signed by all Directors. Management has set up an effective compliance function to ensure ongoing monitoring of the Bank's adherence with all laws and regulations. The Bank has also developed a regulatory matrix that allows mapping applicable regulations with specific controls. The underlying controls are periodically tested by means of a process of self assessment.
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Risk Assessment 10. The Bank is largely compliant with the risk management guidelines issued by the SBP and has given a separate statement on the same.
Control Activities 11. In 2011 all branches of NIB operated on the core banking platform leading to greater consistency in business processes and enhancing controls across the network. The Bank has also developed a Business Continuity Plan and has also successfully tested the operation of its Disaster Recovery site. The Bank has strict Know Your Customer / Anti Money Laundering policies and has anti-fraud training programs and controls in place. The Bank continues to use an e-KYC form to further strengthen its KYC/AML regime. Given its importance the Bank continue to focus on further strengthening process and controls in this area.
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Annual Report 2011
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Information and Communication 13. The Bank has a functioning Management Information System and has developed Key Performance Indicators for its businesses enabling it to monitor budget versus actual performance.
Monitoring 14. 15. Internal Audit periodically carries out audits for branches and Head Office functions to monitor compliance with the Bank's standards. Management gives due consideration to the recommendations made by the internal, external auditors and regulators especially for improvements in the internal control system and takes timely action to implement such recommendations.
Based on the results of an evaluation of the internal control system and key features of the control framework enumerated above, management is of the view that the internal control system during the year was acceptable in design and has been effectively implemented throughout the year. The Bank, however, will continue to further strengthen the process by both raising the bar on acceptable performance and strengthening the consequence management process. It is pertinent to mention that development of an internal control system is an ongoing process through which management reviews and strengthens the internal control system, designed to manage rather than eliminate risks. As such, it can only provide reasonable but not absolute assurance against material misstatement or loss. Risk Management Framework The acceptance and management of financial risk is inherent to banking business activities. It involves the identification, measurement, monitoring and controlling of Risk. In accordance with the Risk Management guidelines issued by the SBP, an Integrated Risk Management Group in the Bank formulates risk management Policies and Procedures in line with Bank's defined strategies and to monitor the following areas: a) Credit Risk Management b) Market and Liquidity Risk Management c) Operational Risk Management Credit Risk Management (CRM) CRM is viewed as an ongoing activity where credit risks are regularly identified and assessed. It determines the quality of the credit portfolio and assists in balancing risk and reward. To manage credit risks appropriately, Credit Committee has been established at the Head Office and comprises of senior and seasoned members with credit, industry and business expertise. In order to achieve earnings targets with a high degree of reliability and to avoid losses through a strong credit process, the Credit Risk Policy Manual has been developed and duly implemented. This Manual is under constant review and regular updates are made therein through the issuance of various Credit Bulletins, thereby, not only incorporating best practices but also ensuring the establishment of a robust credit control environment. Market Risk Management (MRM) MRM is a control system which allows management to closely supervise and monitor risks caused by movements in market rates or prices such as interest rates, foreign exchange rates, equity prices, credit spreads and/or commodity prices, resulting in a potential loss to earnings and capital.
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Annual Report 2011
Treasury Mid Office, under the supervision of Integrated Risk Management Group, is responsible for ensuring that market risk parameters are properly adhered to. A senior resource with requisite experience is being inducted to further strengthen this area. In order to ensure adequate controls for money market, foreign exchange and equity transactions, a comprehensive control mechanism has been outlined in the Market and Liquidity risk management policies which are frequently updated in line with the changes in market dynamics. Operational Risk Management (ORM) Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. The Bank has written and implemented its Operational Risk Policy duly approved by the Board. The Bank has also implemented tools for identification, monitoring, and management of key operational risks and has also implemented a template for collecting operational loss data on a periodic basis. The Bank intends to further strengthen this area by emphasizing on training, adding experienced resources where required, focusing on building robust processes and introducing a strong monitoring system as part of the management process.
Annual Report 2011
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Auditors Review Report to the Members on Statement of Compliance with Best Practices of Code of Corporate Governance
We have reviewed the Statement of Compliance with the Best Practices contained in the Code of Corporate Governance prepared by the Board of Directors of NIB Bank Limited to comply with listing regulations of the Karachi, Lahore and Islamabad Stock Exchanges where the Bank is listed. The responsibility for compliance with the Code of Corporate Governance is that of the Board of Directors of the Bank. Our responsibility is to review, to the extent where such compliance can be objectively verified, whether the Statement of Compliance reflects the status of the Bank's compliance with the provisions of the Code of Corporate Governance and report if it does not. A review is limited primarily to inquiries of the Bank personnel and review of various documents prepared by the Bank to comply with the Code. As part of our audit of financial statements we are required to obtain an understanding of the accounting and internal control systems sufficient to plan the audit and develop an effective audit approach. We have not carried out any special review of the internal control system to enable us to express an opinion as to whether the Board's statement on internal control covers all controls and the effectiveness of such internal controls. Further sub-regulation (xiii) of Listing Regulations 35 (previously Regulation No. 37) notified by the Karachi Stock Exchange (Guarantee) Limited vide circular no. KSE/N-269 dated January 19, 2009 requires the Company to place before the Board of Directors for their consideration and approval related party transactions distinguishing between transactions carried out on terms equivalent to those that prevail in arm's length transactions and transactions which are not executed at arm's length price recording proper justification for using such alternate pricing mechanism. Further, all such transactions are also required to be separately placed before the audit committee. We are only required and have ensured compliance of requirement to the extent of approval of related party transactions by the Board of Directors and placement of such transactions before the audit committee. We have not carried out any procedures to determine whether the related party transactions were undertaken at arm's length price or not. Based on our review, nothing has come to our attention which causes us to believe that the Statement of Compliance does not appropriately reflect the Bank's Compliance, in all material respects, with the best practices contained in the Code of Corporate Governance as applicable to the Bank for the year ended December 31, 2011.
KPMG Taseer Hadi & Co. Chartered Accountants
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Annual Report 2011
Auditors Report to the Members

We have audited the annexed unconsolidated statement of financial position of NIB Bank Limited (the Bank) as at 31 December 2011 and the related unconsolidated profit and loss account, unconsolidated statement of comprehensive income, unconsolidated cash flow statement and unconsolidated statement of changes in equity together with the notes forming part thereof (here-in-after referred to as the 'financial statements') for the year then ended, in which are incorporated the unaudited certified returns from the branches except for 28 branches which have been audited by us and we state that we have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit. It is the responsibility of the Bank's Board of Directors to establish and maintain a system of internal control, and prepare and present the financial statements in conformity with approved accounting standards and the requirements of the Banking Companies Ordinance, 1962 (LVII of 1962), and the Companies Ordinance, 1984 (XLVII of 1984). Our responsibility is to express an opinion on these statements based on our audit. We conducted our audit in accordance with the International Standards on Auditing as applicable in Pakistan. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of any material misstatement. An audit includes examining, on a test basis, evidence supporting amounts and disclosures in the financial statements. An audit also includes assessing accounting policies and significant estimates made by management, as well as, evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion and after due verification, which in the case of loans and advances covered more than 60% of the total loans and advances of the bank, we report that: a) in our opinion, proper books of accounts have been kept by the Bank as required by the Companies Ordinance, 1984 (XLVII of 1984), and the returns referred to above received from the branches have been found adequate for the purposes of our audit; in our opinion: i) the statement of financial position and profit and loss account together with the notes thereon have been drawn up in conformity with the Banking Companies Ordinance, 1962 (LVII of 1962), and the Companies Ordinance, 1984 (XLVII of 1984), and are in agreement with the books of account and are further in accordance with accounting policies consistently applied; the expenditure incurred during the year was for the purpose of the Bank's business; and the business conducted, investments made and the expenditure incurred during the year were in accordance with the objects of the Bank and the transactions of the Bank which have come to our notice have been within the powers of the Bank;
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in our opinion and to the best of our information and according to the explanations given to us, the unconsolidated statement of financial position, unconsolidated profit and loss account, unconsolidated statement of comprehensive income, unconsolidated cash flow statement, and unconsolidated statement of changes in equity together with the notes forming part thereof conform with approved
Annual Report 2011
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accounting standards as applicable in Pakistan, and give the information required by the Banking Companies Ordinance, 1962 (LVII of 1962), and the Companies Ordinance, 1984 (XLVII of 1984), in the manner so required and give a true and fair view of the state of the Bank's affairs as at 31 December 2011 and its true balance of the loss, its cash flows and changes in equity for the year then ended; and d) in our opinion Zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980), was deducted by the Bank and deposited in the Central Zakat Fund established under section 7 of that Ordinance.
KPMG Taseer Hadi & Co. Chartered Accountants Amir Jamil Abbasi
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Annual Report 2011
NIB Bank Limited Unconsolidated Statement of Financial Position As at December 31, 2011
Note 2011 2010
(Rupees '000') ASSETS Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Operating fixed assets Intangible assets Deferred tax assets - net Other assets 7 8 9 10 11 12 13 14 15 7,969,044 1,486,830 14,666,918 49,598,830 60,844,380 2,693,795 2,054,426 11,017,000 4,462,407 154,793,630 LIABILITIES Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Liabilities against assets subject to finance lease Deferred tax liabilities Other liabilities NET ASSETS REPRESENTED BY: Share capital Reserves Discount on issue of shares Accumulated loss Shareholders equity Advance against proposed rights issue Surplus on revaluation of assets - net 22 21 103,028,512 218,276 (45,769,623) (43,893,095) 13,584,070 13,584,070 92,434 13,676,504 CONTINGENCIES AND COMMITMENTS 23 40,437,271 8,464,894 (41,592,479) 7,309,686 6,352,360 13,662,046 719 13,662,765 16 17 18 19 20 1,738,422 47,382,031 85,488,268 3,994,400 2,514,005 141,117,126 13,676,504 1,335,493 42,361,934 99,169,373 3,996,000 3,824,474 150,687,274 13,662,765 8,836,449 2,951,479 6,429,166 51,789,035 74,566,015 2,718,975 2,419,148 9,480,983 5,158,789 164,350,039
The annexed notes from 1 to 42 and annexure - 1 form an integral part of these unconsolidated financial statements.
Badar Kazmi
President / Chief Executive
Teo Cheng San, Roland

Chairman / Director
Tejpal Singh Hora

Director
Muhammad Abdullah Yusuf

Director
Annual Report 2011
17
NIB Bank Limited Unconsolidated Profit and Loss Account For the year ended December 31, 2011
Note 2011 2010
(Rupees '000')
Mark-up / Return / Interest earned Mark-up / Return / Interest expensed Net Mark-up / Interest Income Provision against non-performing loans and advances Provision for diminution in the value of investments Bad debts written off directly Net Mark-up / Interest income after provisions NON MARK-UP / INTEREST INCOME Fee, commission and brokerage income Dividend income Income from dealing in foreign currencies Gain on sale of securities Unrealized gain on revaluation of investments classified as held-for-trading Other income Total Non Mark-up / Interest income 756,650 573,184 526,577 274,512 21,157 2,152,080 1,464,833 NON MARK-UP / INTEREST EXPENSES Administrative expenses Other provisions / write offs Other charges Workers welfare fund Total Non Mark-up / Interest expense Extraordinary / Unusual items PROFIT / (LOSS) BEFORE TAXATION Taxation - Current - Prior years - Deferred PROFIT / (LOSS) AFTER TAXATION Accumulated loss brought forward ACCUMULATED LOSS CARRIED FORWARD Basic / diluted Loss per share (Rupees) 31 30 30 30 28 29 4,714,974 200,912 42,365 (13,000) 4,945,251 (3,480,418) 163,978 30,658 (1,630,964) (1,436,328) (2,044,090) (41,592,479) (43,636,569) (0.34) 6,955,148 158,359 121,918 7,235,425 (12,621,557) 181,974 327,748 (3,019,165) (2,509,443) (10,112,114) (7,258,893) (17,371,007) (2.50) 715,279 177,229 469,449 328,920 24,475 1,715,352 (5,386,132) 11.5 10.13 24 25 14,245,677 12,166,781 2,078,896 2,355,074 395,267 15,802 2,766,143 (687,247) 16,482,080 13,533,160 2,948,920 9,872,524 124,521 53,359 10,050,404 (7,101,484)
26 27
Badar Kazmi

Chairman / Director
Tejpal Singh Hora

Director

Director
18
Annual Report 2011
NIB Bank Limited Unconsolidated Statement of Comprehensive Income For the year ended December 31, 2011
2011 2010
(Rupees '000')
Profit / (Loss) after taxation for the year Other comprehensive income Total comprehensive income for the year (2,044,090) (2,044,090) (10,112,114) (10,112,114)
Surplus / deficit on revaluation of "Available for Sale" securities is presented under a separate head below equity as "Surplus / deficit on revaluation of assets" in accordance with the requirements specified by the Companies Ordinance, 1984, and the State Bank of Pakistan vide its BSD Circular 20 dated August 4, 2000 and BSD Circular 10 dated July 13, 2004.
Badar Kazmi

Chairman / Director
Tejpal Singh Hora

Director

Director
Annual Report 2011
19
NIB Bank Limited Unconsolidated Statement of Changes in Equity For the year ended December 31, 2011
Reserves Capital Share capital Discount on Share issue of premium shares Revenue Accumulated (loss)
Note
Statutory General reserve reserve (a) (Rupees '000') 212,804 5,472
Total
Balance as at December 31, 2009 Total comprehensive income / (loss) for the year Loss after taxation for the year Goodwill adjustment Balance as at December 31, 2010 Total comprehensive income / (loss) for the year Loss after taxation for the year Transaction with owners, recorded directly in equity Issue of right shares during the year Discount on issue of right shares Share premium adjusted against share discount Right shares issue cost 13.2
40,437,271
8,246,618
(7,258,893)
41,643,272
40,437,271
8,246,618
212,804
5,472
(10,112,114) (10,112,114) (24,221,472) (24,221,472) (41,592,479) 7,309,686
(2,044,090)
(2,044,090)
62,591,241 (54,016,241) 8,246,618
(8,246,618)
212,804
5,472
(256,526) (256,526) (43,893,095)
62,591,241 (54,016,241) (256,526) 8,318,474 13,584,070
62,591,241 (45,769,623) (8,246,618) Balance as at December 31, 2011 (a) 103,028,512 (45,769,623)
This represents reserve created under section 21(1)(a) of the Banking Companies Ordinance 1962.
Badar Kazmi

Chairman / Director
Tejpal Singh Hora

Director

Director
20
Annual Report 2011
NIB Bank Limited Unconsolidated Statement of Cash Flows For the year ended December 31, 2011
2011 2010
(Rupees '000')
CASH FLOWS FROM OPERATING ACTIVITIES Loss before taxation Dividend income Adjustments for non-cash items Depreciation Amortization Workers welfare fund Gain on sale of securities Gain on sale of operating fixed assets Provision against non-performing loans and advances Bad debts written off directly Fixed assets written off Provision for diminution in the value of investments Other provisions / write offs (3,480,418) (573,184) (4,053,602) 273,601 368,608 (13,000) (274,512) (2,522) 2,355,074 15,802 395,267 200,912 3,319,230 (734,372) (8,237,752) 11,350,759 565,110 402,929 5,020,097 (13,681,105) (1,297,383) (6,611,717) (264,276) (6,875,993) (12,621,557) (177,229) (12,798,786) 386,964 371,225
(328,920) 732 9,872,524 53,359 159,680 124,521 158,359 10,798,444 (2,000,342) (747,279) (470,492) 1,781,836 (238,714) (20,161,431) 5,249,568 (754,759) (17,341,613) (676,360) (18,017,973)
(Increase) / decrease in operating assets Lendings to financial institutions Advances Other assets (excluding advance taxation) Increase / (decrease) in operating liabilities Bills payable Borrowings Deposits and other accounts Other liabilities (excluding current taxation) Income tax paid Net cash from / (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES Net Investments in available-for-sale securities Net Investments in held-to-maturity securities Net Investments in associates Dividend received Payments for capital work in progress Acquisition of property and equipment Acquisition of intangible assets Sale proceeds of property and equipment disposed of Net cash (used in) / from investing activities
2,278,201 (22,089) 573,184 (191,617) (58,334) (3,886) 4,052 2,579,511
10,731,652 (35,501) 284,134 177,229 (126,035) (93,286) (4,050) 3,078 10,937,221
Annual Report 2011
21
NIB Bank Limited Unconsolidated Statement of Cash Flows For the year ended December 31, 2011
Note 2011 2010
(Rupees '000')
CASH FLOWS FROM FINANCING ACTIVITIES Redemption of sub-ordinated loans Issue of share capital Advance against proposed rights issue Dividend paid Right shares issue cost Net cash (used in) / from financing activities Net increase / (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year 32 (1,600) 2,222,640 (86) (256,526) 1,964,428 (2,332,054) 11,787,928 9,455,874 (1,600)
6,352,360 (138)
6,350,622 (730,130) 12,518,058 11,787,928
Badar Kazmi

Chairman / Director
Tejpal Singh Hora

Director

Director
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Annual Report 2011
NIB Bank Limited Notes to the Unconsolidated Financial Statements For the year ended December 31, 2011
1. STATUS AND NATURE OF BUSINESS NIB Bank Limited "the Bank" is incorporated in Pakistan and its registered office is situated at first floor, Post Mall, F-7 Markaz, Islamabad. The Bank is listed on all the stock exchanges in Pakistan and has 179 branches (December 31, 2010: 178 branches). The Bank is a scheduled commercial bank and is principally engaged in the business of banking as defined in the Banking Companies Ordinance, 1962. NIB Bank Limited is a subsidiary of Bugis Investments (Mauritius) Pte. Limited which is a wholly owned subsidiary of Fullerton Financial Holdings Pte. Limited which in turn is a wholly owned subsidiary of Temasek Holdings, an investment arm of the Government of Singapore. 2. BASIS OF PRESENTATION These unconsolidated financial statements represent separate financial statements of the Bank. The consolidated financial statements of the Bank, its subsidiary and associates are presented separately. In accordance with the directives of the Federal Government regarding the shifting of the banking system to Islamic modes, the State Bank of Pakistan (SBP) has issued various circulars from time to time. Permissible forms of trade-related modes of financing include purchase of goods by banks from their customers and immediate resale to them at appropriate mark-up in price on deferred payment basis. The purchases and sales arising under these arrangements are not reflected in these unconsolidated financial statements as such but are restricted to the amount of facility actually utilized and the appropriate portion of mark-up thereon. These unconsolidated financial statements have been presented in Pakistan Rupees, which is the Bank's functional and presentation currency. The amounts are rounded off to the nearest thousand rupees. 3. 3.1 STATEMENT OF COMPLIANCE These unconsolidated financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) as are notified under the Companies Ordinance, 1984, provisions of and directives issued under the Banking Companies Ordinance, 1962, the Companies Ordinance, 1984 and the directives issued by the SBP. In case the requirements differ, the provisions of and directives issued under the Banking Companies Ordinance, 1962, the Companies Ordinance, 1984 and the directives issued by the SBP shall prevail. The SBP vide BSD Circular No. 10, dated August 26, 2002 has deferred the applicability of International Accounting Standard 39, Financial Instruments: Recognition and Measurement (IAS 39) and International Accounting Standard 40, Investment Property for banking companies till further instructions. Further, according to a notification of the Securities and Exchange Commission of Pakistan (SECP) dated April 28, 2008, IFRS 7 "Financial Instruments: Disclosures" has not been made applicable for banks. Accordingly, the requirements of these standards have not been considered in the preparation of these unconsolidated financial statements. However, investments have been classified and valued in accordance with the requirements of various circulars issued by the SBP. Standards, interpretations and amendments to published approved accounting standards that are not yet effective The following standards, amendments and interpretations of approved accounting standards are effective for accounting periods beginning on or after January 1, 2012: Amendments to IAS 12 deferred tax on investment property (effective for annual periods beginning on or after 1 January 2012). The 2010 amendment provides an exception to the measurement principle in respect of investment property measured using the fair value model in accordance with IAS 40 Investment Property. The measurement of deferred tax assets and liabilities, in this limited circumstance, is based on a rebuttable presumption that the carrying amount of the investment property will be recovered entirely through sale. The presumption can be rebutted only if the investment property is depreciable and held within a business model whose objective is to consume substantially all of the assets economic benefits over the life of the asset. However, this change will not impact the Bank as SBP vide BSD Circular No. 10 dated August 26, 2002 has deferred the applicability of IAS 40 for Banking Companies.
3.2
3.3
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23
Notes to the Unconsolidated Financial Statements For the year ended December 31, 2011
IAS 27 Separate Financial Statements (2011) - (effective for annual periods beginning on or after 1 January 2013). IAS 27 (2011) supersedes IAS 27 (2008). Three new standards IFRS 10 - Consolidated Financial Statements, IFRS 11- Joint Arrangements and IFRS 12- Disclosure of Interest in Other Entities dealing with accounting for subsidiaries and associates would be applicable effective 1 January 2013. IAS 27 (2011) carries forward the existing accounting and disclosure requirements for separate financial statements, with some minor clarifications. The amendments have no impact on financial statements of the Bank. IAS 28 Investments in Associates and Joint Ventures (2011) - (effective for annual periods beginning on or after 1 January 2013). IAS 28 (2011) supersedes IAS 28 (2008). IAS 28 (2011) makes the amendments to apply IFRS 5 to an investment, or a portion of an investment, in an associate or a joint venture that meets the criteria to be classified as held for sale; and on cessation of significant influence or joint control, even if an investment in an associate becomes an investment in a joint venture. The amendments have no impact on financial statements of the Bank. IAS 19 Employee Benefits (amended 2011) - (effective for annual periods beginning on or after 1 January 2013). The amended IAS 19 includes the amendments that require actuarial gains and losses to be recognised immediately in other comprehensive income; this change will remove the corridor method and eliminate the ability for entities to recognise all changes in the defined benefit obligation and in plan assets in profit or loss, which currently is allowed under IAS 19; and that the expected return on plan assets recognised in profit or loss is calculated based on the rate used to discount the defined benefit obligation. The impact of these have not been quantified. Presentation of Items of Other Comprehensive Income (Amendments to IAS 1) - (effective for annual periods beginning on or after 1 July 2012). The amendments require that an entity present separately the items of other comprehensive income that would be reclassified to profit or loss in the future if certain conditions are met from those that would never be reclassified to profit or loss. The amendments do not address which items are presented in other comprehensive income or which items need to be reclassified. The requirements of other IFRSs continue to apply in this regard. The amendments have no impact on financial statements of the Bank. Disclosures Transfers of Financial Assets (Amendments to IFRS 7) - (effective for annual periods beginning on or after 1 July 2011). The amendments introduce new disclosure requirements about transfers of financial assets, including disclosures for financial assets that are not derecognised in their entirety; and financial assets that are derecognised in their entirety but for which the entity retains continuing involvement. The amendments have no impact on financial statements of the Bank. Offsetting Financial Assets and Financial Liabilities (Amendments to IAS 32) (effective for annual periods beginning on or after 1 January 2014). The amendments address inconsistencies in current practice when applying the offsetting criteria in IAS 32 Financial Instruments: Presentation. The amendments clarify the meaning of currently has a legally enforceable right of set-off; and that some gross settlement systems may be considered equivalent to net settlement. Offsetting Financial Assets and Financial Liabilities (Amendments to IFRS 7) (effective for annual periods beginning on or after 1 January 2013). The amendments to IFRS 7 contain new disclosure requirements for financial assets and liabilities that are offset in the statement of financial position or subject to master netting agreement or similar arrangement. The amendments have no impact on financial statements of the Bank.
4.
BASIS OF MEASUREMENT These unconsolidated financial statements have been prepared under the historical cost convention, except for the measurement of certain investments and commitments in respect of forward foreign exchange contracts that are stated at revalued amounts / fair values, staff retirement benefits (Gratuity) which are stated at present value and certain financial assets that are stated net of provisions.
5.
CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY The preparation of unconsolidated financial statements in conformity with approved accounting standards requires the use of certain critical accounting estimates that affect the reported amounts of assets, liabilities, income and expenses. It also requires the management to exercise its judgment in the process of applying the Bank's
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Annual Report 2011
accounting policies. Estimates and judgments are continually evaluated and are based on historical experience, including expectations of future events that are believed to be reasonable under the circumstances. The areas where various assumptions and estimates are significant to the Bank's financial statements or where judgment was exercised in application of accounting policies are as follows: 5.1 Classification of Investments Held-to-maturity securities As described in note 6.4, held-to-maturity securities are investments where the management has positive intent and ability to hold to maturity. The classification of these securities involves management judgment as to whether the financial assets are held-to-maturity investments. Held-for-trading securities Investments classified as held-for-trading are those which the Bank has acquired with an intention to trade by taking advantage of short term market / interest rate movements and are to be sold within 90 days. Available-for-sale securities Investments which are not classified as held-for-trading or held-to-maturity are classified as available-for-sale. 5.2 Impairment Valuation and impairment of available-for-sale investments The Bank determines that an available-for-sale equity investment is impaired when there has been a significant or prolonged decline in the fair value below its cost. The determination of what is significant or prolonged requires judgment. In making this judgment, the Bank evaluates, among other factors, the normal volatility in share price. In addition, impairment may be appropriate when there is evidence of deterioration in the financial health of the investee, industry and sector performance, changes in technology and operational and financing cash flows. Provision for diminution in the value of term Finance Certificates, Bonds and Sukuks is made as per the Prudential Regulations issued by the State Bank of Pakistan. In case of impairment of available-for-sale securities, the loss is recognised in the profit and loss account. Impairment of investments in associates and subsidiaries The Bank considers that a significant or prolonged decline in the recoverable value of investments in associates and subsidiaries below their cost may be evidence of impairment. Recoverable value is calculated as the higher of fair value less costs to sell and value in use. An impairment loss is recognized when the recoverable value falls below the carrying value and is charged to the profit and loss account. Subsequent reversal of impairment loss, upto the cost of investments in associates and subsidiaries, are credited to the profit and loss account. Impairment of non financial assets (excluding deferred tax and goodwill) Non financial assets are subject to impairment review if there are events or changes in circumstances that indicate that the carrying amount may not be recoverable. If any such indication exists, the Bank estimates the recoverable amount of the asset and the impairment loss, if any. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of future cash flows from the asset discounted at a rate that reflects market interest rates adjusted for risks specific to the asset. If the recoverable amount of an intangible or tangible asset is less than its carrying value, an impairment loss is recognised immediately in the profit and loss account and the carrying value of the asset reduced by the amount of the loss. A reversal of an impairment loss on intangible assets (excluding goodwill) is recognized as it arises provided the increased carrying value does not exceed that which it would have been had no impairment loss been recognized.
Annual Report 2011
25
Impairment of Goodwill Impairment testing involves a number of judgmental areas which are subject to inherent significant uncertainty, including the preparation of cash flow forecasts for periods that are beyond the normal requirements of management reporting and the assessment of the discount rate appropriate to the business. 5.3 Provision against non-performing advances Apart from the provision determined on the basis of time based criteria given in the Prudential Regulations of the SBP, management also applies subjective criteria of classification and accordingly the classification of an advance may be downgraded on the basis of evaluation of the credit worthiness of the borrower, its cash flows, operations in its account and adequacy of security in order to ensure accurate measurement of the provision. 5.4 Retirement Benefits The key actuarial assumptions concerning the valuation of the defined benefit plan and the sources of estimation are disclosed in note 34.2 to these unconsolidated financial statements. 5.5 Useful life of property and equipment Estimates of useful life of property and equipment are based on management's best estimate. 5.6 Income Taxes In making the estimates for income taxes currently payable by the Bank, the management looks at the current income tax laws and the decisions of appellate authorities on certain issues in the past. In making the provision for deferred taxes, estimates of the Bank's future taxable profits are taken into account. 6. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies adopted in the preparation of these unconsolidated financial statements are the same as those applied in the preparation of the unconsolidated financial statements of the Bank for the year ended December 31, 2010 and are enumerated as follows: 6.1 Business combinations Business combinations are accounted for using the purchase method. Under this method, identified assets acquired, liabilities and contingent liabilities assumed are fair valued at the acquisition date, irrespective of the extent of any minority interest. The excess of cost of acquisition over the fair value of identifiable net assets acquired is recorded as goodwill. 6.2 Revenue recognition Mark-up / return on performing loans / advances and investments is recognized on time proportionate basis. Where debt securities are purchased at a premium or discount, such premium / discount is amortized through the profit and loss account over the remaining period of maturity using the effective interest rate method so as to produce a constant rate of return. Interest or mark-up recovered on non-performing advances is recognized on a receipt basis in accordance with the requirements of the Prudential Regulations issued by the SBP as amended from time to time. The financing method is used in accounting for income on finance leases and hire purchase transactions. Under this method, the unearned income, i.e. the excess of aggregate lease rentals and the estimated residual value over the net investment (cost of leased assets) is deferred and then amortized to income over the term of the lease on a pattern reflecting a constant periodic rate of return on the net investment in the lease. Unrealized lease income is suspended, where necessary, in accordance with the requirements of the Prudential Regulations issued by the SBP.
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Annual Report 2011
Rental income from assets given on operating lease is recognized on time proportionate basis over the lease period. Gains / losses on termination of lease contracts, documentation charges and other lease income are recognized as income when they are realized. Fee, commission and brokerage income is recognized at the time of performance of the service. Dividend income is recorded when the right to receive the dividend is established. 6.3 Grants and assistance In terms of Kreditanstalt fur Wiederaufbau (KFW) loan re-lent by the Government of Pakistan (GoP), the Bank was required to bear interest at 11 percent per annum and pay interest to the GoP at 10 percent per annum and transfer the remaining 1 percent per annum margin to a counter part fund to be used by the Bank for financing feasibility surveys, market surveys and similar investigations destined for the preparation of projects. 6.4 Investments Investments of the Bank, other than investments in subsidiaries and associates are classified as held-to-maturity, held-for-trading and available-for-sale. Held-to-maturity These are securities with fixed or determinable payments and fixed maturity and the Bank has the positive intent and ability to hold upto maturity. Held-for-trading These securities are either acquired for generating a profit from short-term fluctuations in market prices, interest rate movements, dealer's margin or are securities included in the portfolio for which there is evidence of a recent actual pattern of short-term profit taking. Available-for-sale These are securities which do not fall under the classification of held-for-trading or held-to-maturity securities. Initial measurement All regular way purchases and sales of investments are recognized on the trade date, i.e., the date that the Bank commits to purchase or sell the asset. Regular way purchases or sales are purchases or sales of investments that require delivery of assets within the time frame generally established by regulation or convention in the market place. Investments are initially recognized at fair value which, in the case of investments other than held-for-trading, includes transaction costs associated with the investments. Subsequent measurement Held-to-maturity These are measured at amortized cost using the effective interest rate method, less any impairment loss recognized to reflect irrecoverable amounts. Held-for-trading These are measured at subsequent reporting dates at fair value. Gains and losses on remeasurement are included in the profit and loss account. Available-for-sale Quoted-securities classified as available-for-sale investments are measured at subsequent reporting dates at fair value. Any surplus / deficit arising thereon is kept in a separate account shown in the balance sheet below equity
Annual Report 2011
27
and taken to the profit and loss account when actually realized upon disposal or when the investment is considered to be impaired. Unquoted equity securities are valued at the lower of cost and break-up value. A decline in the carrying value is charged to the profit and loss account. The break-up value of these equity securities is calculated with reference to the net assets of the investee company as per the latest available audited financial statements. Investments in other unquoted securities are valued at cost less impairment losses. Provision for diminution in the value of securities (except term finance certificates) is made for impairment, if any. Provision for diminution in the value of term finance certificates is made as per the aging criteria prescribed by the Prudential Regulations issued by the SBP. Investment in Subsidiaries and Associates Investments in subsidiaries and associates are valued at cost less impairment, if any. A reversal of an impairment loss on associates and subsidiaries is recognized as it arises provided the increased carrying value does not exceed that it would have been had no impairment loss been recognized. Gain or loss on sale of investments in subsidiaries and associates is included in the profit and loss account for the year. 6.5 Lendings to / borrowings from financial institutions Securities sold subject to a repurchase agreement (repo) are retained in the financial statements as investments and the counter party liability is included in borrowings. Securities purchased under agreement to resale (reverse repo) are not recognized in the financial statements as investments and the amount extended to the counter party is included in lendings to financial institutions. In the case of the continuous funding system, transactions are shown under advances. The difference between sale and repurchase price is treated as mark-up / return expensed whereas difference between purchase and resale price is treated as mark-up / return earned. Securities borrowed are not recognised in the financial statements, unless these are sold to third parties, in which case the obligation to return them is recorded at fair value as a trading liability under borrowings from financial institutions. 6.6 Advances Advances including continuous funding system and net investment in finance lease are stated net of provisions. Provisions Specific and general provisions are made based on an appraisal of the loan portfolio that takes into account Prudential Regulations issued by the State Bank of Pakistan from time to time. Specific provisions are made where the repayment of identified loans is in doubt and reflect an estimate of the amount of loss expected. The general provision is for the inherent risk of losses which are known from experience to be present in any loan portfolio. Provision made / reversed during the year is charged to the profit and loss account and accumulated provision is netted off against advances. Advances are written off when there is no realistic prospect of recovery. Net investment in finance lease Leases include hire purchase where the Bank transfers substantially all the risks and rewards incidental to the ownership of an asset and are classified as finance leases. Net investment in finance lease is recognized at an amount equal to the aggregate of minimum lease payments and any guaranteed residual value less unearned finance income, if any.
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Annual Report 2011
6.7 Operating fixed assets Owned Property and equipment except freehold and leasehold land is stated at cost less accumulated depreciation and accumulated impairment loss, if any. Freehold and leasehold land is stated at cost. Depreciation is charged to income applying the straight line method over the estimated useful lives of the assets while taking into account any residual value, at the rates given in Note 12.2 to these unconsolidated financial statements. In respect of additions and deletions to assets during the year, depreciation is charged from the month of acquisition while depreciation on disposals during the year is charged upto the month of disposal. Normal repairs and maintenance are charged to the profit and loss account for the year as and when incurred. Major repairs and improvements are capitalized and assets so replaced are retired. Gains and losses on disposal of property and equipment if any, are taken to the profit and loss account for the year. Assets held under finance lease Leasehold land is stated at cost. Assets held under finance lease are stated at cost less accumulated depreciation. The outstanding obligations under the lease agreements are shown as a liability net of finance charges allocable to future periods. Depreciation on assets held under finance lease is charged in a manner consistent with that for depreciable assets which are owned by the Bank. Finance charges are allocated to accounting periods so as to provide a constant periodic rate of return on the outstanding liability. Assets held under operating lease Operating lease assets are stated at cost less accumulated depreciation and impairment, if any. Repairs and maintenance are charged to the profit and loss account as and when incurred. Capital work in progress These assets are stated at cost. 6.8 Intangible assets Intangible assets include the value of the brand, core deposit relationships, and core overdraft / working capital loan relationships and are stated at cost less accumulated amortisation and accumulated impairment losses, if any. Amortisation is charged to the profit and loss account on a straight line basis over the assets' useful lives which are determined using methods that best reflect the pattern of economic benefits. The estimated useful lives are as follows: Brand Core deposit relationships Core overdraft / working capital loan relationships 5 years 11 years 11 years
Computer software is stated at cost less accumulated amortization and accumulated impairment loss, if any. Amortization is carried out on the straight line method at the rates given in Note 13 to these unconsolidated financial statements. 6.9 Sub-Ordinated loans Sub-ordinated loans are initially recorded at the amount of proceeds received. Mark-up accrued on these loans is recognized separately as part of other liabilities and is charged to the profit and loss account over the period on an accrual basis.
Annual Report 2011
29
6.10 Staff retirement benefits Defined contribution plan The Bank operates a defined contribution provident fund for all its permanent employees. Equal monthly contributions are made to the fund by both the Bank and the employees at the rate of 10% of basic salary. Defined benefit plan The Bank operates an unfunded gratuity scheme covering all eligible employees who have attained the minimum qualifying period of five years. Eligible employees are those employees who have joined the service of the Bank on or before March 31, 2006. Provision is made in accordance with actuarial recommendations. Actuarial valuation is carried out periodically using the Projected Unit Credit Method. Actuarial gain / loss is recognized using the 10% corridor approach. Corridor is defined as the greater of 10% of the present value of defined benefit obligations and plan assets. 6.11 Taxation Income tax expense comprises current and deferred tax. Income tax expense is recognised in the profit and loss account except to the extent that it relates to items recognised directly in equity. Current Provision for current taxation is based on taxable income at the current rates of taxation in accordance with the prevailing laws for taxation on income earned after taking into consideration tax credits and rebates available and any adjustments to tax payable in respect of previous years. Deferred Deferred tax is recognized using the balance sheet liability method on all major temporary differences as at the statement of financial position date between the amounts attributed to assets and liabilities for financial reporting purposes and amounts used for taxation purposes. The Bank records deferred tax assets / liabilities using tax rates, enacted or substantially enacted at the statement of financial position date, that are expected to be applicable at the time of their reversal. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realized. The Bank recognizes a deferred tax asset / liability on deficit / surplus on revaluation of securities in accordance with the requirements of IAS 12 "Income Taxes". The related deferred tax asset / liability is adjusted against the related deficit / surplus. The Bank recognizes a deferred tax asset for the carry forward of unused tax losses and unused tax credits to the extent that it is probable that future taxable profits will be available against which the unused tax losses and unused tax credits can be utilized in accordance with the requirements of IAS 12 "Income Taxes". 6.12 Provisions Provisions are recognized when the Bank has a present obligation (legal or constructive) as a result of past events and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be made. Provisions are reviewed quarterly and are adjusted to reflect the current best estimate. 6.13 Offsetting Financial assets and financial liabilities are offset and the net amount is reported in the financial statements when there is a legally enforceable right to set-off the recognized amount and the Bank intends either to settle on a net basis, or to realize the assets and to settle the liabilities simultaneously. Income and expense items relating to such assets and liabilities are also offset and the net amount is reported in the financial statements.
30
Annual Report 2011
6.14 Dividend distribution Dividend is recognized as a liability in the period in which it is declared. 6.15 Distributions of bonus shares and other appropriations to reserves The Bank recognizes all appropriations, other than statutory appropriations, to reserves including those in respect of bonus shares made after the balance sheet date, in the period in which such appropriations are approved. 6.16 Foreign currencies Transactions in foreign currencies are translated to Rupees at the foreign exchange rates prevailing at the transaction date. Monetary assets and liabilities in foreign currencies are translated into Rupees at the rates of exchange prevailing at the balance sheet date. Forward foreign exchange contracts and foreign bills purchased are valued at forward rates applicable to their respective maturities. Commitments for outstanding forward foreign exchange contracts are disclosed in these unconsolidated financial statements at committed amounts. Contingent liabilities / commitments for letters of credit and letters of guarantee denominated in foreign currencies are expressed in Rupee terms at the rates of exchange approximating those prevailing at the balance sheet date. Assets against which the constituents have exercised their option to transfer exchange risk to the Bank and liabilities for which the Bank has exercised its option to transfer exchange risk to the Government, are translated at the rates of exchange guaranteed by the Bank and the Government, respectively. Assets, liabilities, commitments and contingent liabilities in respect of Bangladesh are translated at foreign exchange rates approximating those prevailing prior to August 15, 1971. Exchange gains and losses are included in income currently except net unrealized exchange gain on long-term monetary items which, as a matter of prudence, is carried forward as unrealized gain in view of the uncertainty associated with its realization. 6.17 Cash and cash equivalents For the purposes of the cash flow statement, cash and cash equivalents include cash and balances with treasury banks and balances with other banks. 6.18 Financial instruments All financial assets and liabilities are recognized at the time when the Bank becomes a party to the contractual provisions of the instrument. Financial assets are derecognized when the Bank loses control of the contractual rights that comprise the financial assets. Financial liabilities are derecognized when they are extinguished i.e. when the obligation specified in the contract is discharged, cancelled or expired. Any gain or loss on derecognition of the financial assets and financial liabilities is taken to income directly. Financial assets carried on the balance sheet include cash and bank balances, lendings to financial institutions, investments, advances and certain receivables. Financial liabilities include borrowings, deposits, bills payable and other payables. The particular recognition methods adopted for significant financial assets and financial liabilities are disclosed in the individual policy statements associated with them. 6.19 Derivative financial instruments Derivative financial instruments are recognized at their fair value on the date on which a derivative contract is entered into and subsequently these instruments are marked to market and changes in fair values are taken to the profit and loss account. Fair values are obtained from quoted market prices in active markets.
Annual Report 2011
31
6.20 Segment reporting A segment is a distinguishable component of the Bank that is engaged in providing products or services (business segment), or in providing products or services within a particular economic environment (geographical segment), which is subject to risks and rewards that are different from those of other segments. The Banks primary format of reporting is based on business segments. 6.20.1 Business Segments Corporate and Investment Banking It represents all funded and non funded credit facilities of working capital financing including seasonal finance, trade finance, cash finance, running finance, guarantees and bills of exchange relating to corporate customers, as well as for long term expansion, BMR, Project financing, syndicated financing along with advisory, underwriting, transactional banking, and IPO related activities. Retail It represents banking services offered to individuals and small businesses through a retail branch banking and alternate distribution network. These banking services include lending, deposits and distribution of insurance products along with other financial products and services tailored for such customers. Small & Medium Enterprises and Commercial It represents all funded and non funded credit facilities, deposit products & transaction services offered by the Bank to small & medium enterprises and commercial businesses operating in the manufacturing, trading, wholesale and service sectors. Treasury Treasury manages the asset and liability mix of the Bank, and provides customers with products that meet their demands for management of liquidity, cash flow, interest rate fluctuations and foreign exchange risk. 6.20.2 Geographical segments The Bank operates in Pakistan only. 6.21 Assets acquired in satisfaction of claims The Bank occasionally acquires assets in settlement of certain advances. These are stated at the lower of the carrying value of the related advances and the current fair value of such assets. 6.22 Deposits Deposits are initially recorded at the amount of proceeds received. Mark-up accrued on deposits is recognized separately as part of other liabilities and is charged to the profit and loss account on a time proportionate basis. 6.23 Earnings per share The Bank presents earnings per share (EPS) data for its ordinary shares. EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Bank by the weighted average number of ordinary shares outstanding during the year.
32
Annual Report 2011
Note 7. CASH AND BALANCES WITH TREASURY BANKS
In hand Local currency Foreign currencies With State Bank of Pakistan in Local currency current accounts Foreign currency current account Foreign currency deposit accounts With National Bank of Pakistan in local currency current accounts 7.2 7.3 7.4 3,852,169 260,843 807,546 557,518 7,969,044 4,287,132 308,292 1,034,595 773,205 8,836,449
2011
2010
(Rupees '000')
7.1 2,236,526 254,442 2,155,334 277,891
7.1 This includes National Prize Bonds of Rs. 6.237 million (2010: Rs. 4.611 million). 7.2 The current account is maintained under the requirements of Section 22 of the Banking Companies Ordinance, 1962. 7.3 This includes special cash reserve at Nil return (2010: Nil) required to be maintained with the SBP on deposits held under the new foreign currency accounts scheme. 7.4 This represents special cash reserve of 15% required to be maintained with the SBP on deposits held under the new foreign currency accounts scheme at Nil return (2010: Nil) per annum. 8. BALANCES WITH OTHER BANKS
In Pakistan in current accounts Outside Pakistan in current accounts Provision against doubtful balances 853,746 633,084 1,486,830 1,486,830 309,957 2,645,486 2,955,443 (3,964) 2,951,479
8.1 Provision against doubtful balances represents impairment in balance outstanding with BCCI. The said amount has been written off in the current year. 9. LENDINGS TO FINANCIAL INSTITUTIONS
Call money lendings Repurchase agreement lendings (Reverse Repo) 9.2 9.3 & 9.4 195,000 14,471,918 14,666,918 725,000 5,704,166 6,429,166 6,429,166 6,429,166
9.1 Particulars of Lendings

In local currency In foreign currencies 14,666,918 14,666,918
9.2 These represent unsecured call money lending to a financial institution carrying mark-up rate of 12.25% (2010: 12.75% to 15.00%) per annum and having remaining maturity of three days. 9.3 These represent repurchase agreement lendings to financial institutions carrying mark-up rates ranging from 11.63% to 13.31% (2010: 12.70% to 13.90%) per annum and having remaining maturities upto one month.
Annual Report 2011
33
9.4 Securities held as collateral against lendings to financial institutions
Held by Bank 2011 Further given as collateral / sold
7,998,376 7,998,376
Total
Held by Bank
2010 Further given as collateral / sold

3,461,900 312,572 3,774,472
Total
(Rupees '000')
Market Treasury Bills Pakistan Investment Bonds 5,969,968 503,574 6,473,542 13,968,344 503,574 14,471,918 499,931 1,429,763 1,929,694 3,961,831 1,742,335 5,704,166
9.4.1
The market value of securities held as collateral against lendings to financial institutions as at December 31, 2011 amounted to Rs. 14,517.363 million (2010: Rs. 5,717.943 million). INVESTMENTS
10.
10.1 (a) Investments by type:

2011 Note Held by Bank Given as Collateral Total Held by Bank (Rupees '000')

2010 Given as Collateral Total
Held-for-trading securities Available-for-sale securities
Market Treasury Bills Pakistan Investment Bonds Defense Savings Certificates Sukuk Bonds Cumulative Preference Shares Ordinary Shares / Certificates in Listed Companies / Modarabas Ordinary Shares of Unlisted Companies Term Finance Certificates Units / Certificates of Mutual Funds
10.2 10.2 & 10.2.1 10.3 10.4 10.5 10.6 10.7 10.8 & 10.9 10.10
7,687,909 2,897,683 528,774 80,178 961,085 66,092 2,372,733 13,005 14,607,459
18,826,953 6,180,265 2,730 112,373 25,122,321
26,514,862 9,077,948 2,730 528,774 80,178 1,073,458 66,092 2,372,733 13,005 39,729,780
12,450,355 2,612,273 5,771 505,126 50,000 1,053,073 66,049 5,171,496 269,172 22,183,315
18,562,576 961,963 2,730 112,373 19,639,642
31,012,931 3,574,236 8,501 505,126 50,000 1,165,446 66,049 5,171,496 269,172 41,822,957
Held-to-maturity securities
Pakistan Investment Bonds Term Finance Certificates

Associates Subsidiaries Investments at cost
10.2 10.8 & 10.9 10.11 &10.16 10.12 &10.16
235,980 97,334 333,314 1,573,832 4,584,741 21,099,346
4,499,632 4,499,632 29,621,953 (65,863) 29,556,090 76,833 29,632,923
4,735,612 97,334 4,832,946 1,573,832 4,584,741 50,721,299 (1,254,551) 49,466,748 132,082 49,598,830
4,691,896 118,961 4,810,857 1,573,832 4,584,741 33,152,745 (923,899) 32,228,846 22,924 32,251,770
19,639,642 (24,873) 19,614,769 (77,504) 19,537,265
4,691,896 118,961 4,810,857 1,573,832 4,584,741 52,792,387 (948,772) 51,843,615 (54,580) 51,789,035
Provision for diminution in value of investments

Investments - net of provisions
10.13 & 10.14
(1,188,688) 19,910,658
Surplus / (Deficit) on revaluation of available-for-sale securities

Net Investments
22
55,249 19,965,907
34
Annual Report 2011
Note 10.1(b) Investments by segments: Federal Government Securities Market Treasury Bills Pakistan Investment Bonds Defense Savings Certificates Sukuk Bonds Cumulative Preference Shares Fully Paid-up Ordinary Shares & Modaraba Certificates Listed Unlisted Term Finance Certificates Listed Unlisted Units / Certificates of Mutual Funds Associates Subsidiaries Total investments at cost Provision for diminution in value of investments Investments - Net of Provisions Surplus / (Deficit) on revaluation of available-for-sale securities Net Investments 10.2 22 10.13 & 10.14 10.8 10.9 10.10 10.11 & 10.16 10.12 & 10.16 2,311,691 158,376 13,005 1,573,832 4,584,741 50,721,299 (1,254,551) 49,466,748 132,082 49,598,830 2,321,843 2,968,614 269,172 1,573,832 4,584,741 52,792,387 (948,772) 51,843,615 (54,580) 51,789,035 10.6 10.7 1,073,458 66,092 1,165,446 66,049 10.2 10.2 & 10.2.1 10.3 10.4 10.5 26,514,862 13,813,560 2,730 528,774 80,178 31,012,931 8,266,132 8,501 505,126 50,000 2011 2010
(Rupees '000')
Market Treasury Bills and Pakistan Investment Bonds are held with the SBP and are eligible for rediscounting. Market Treasury Bills embody effective yields ranging from 11.92% to 13.35% (2010: 12.02% to 13.78%) with remaining maturities of 138 days to 320 days and Pakistan Investment Bonds carry mark-up ranging from 8% to 12% (2010: 8% to 14% ) per annum on semi-annual basis with remaining maturities of 116 days to 10 years. Certain government securities are required to be maintained with the SBP to meet statutory liquidity requirements calculated on the basis of demand and time liabilities. This includes Rs. 100 million PIB outstanding as at December 31, 2011, which was pledged against borrowing from a Company in 2004. As the lender had failed to return the pledged PIB upon the maturity of the contract period, this amount is appearing as investment in PIBs with a corresponding amount appearing in Borrowings. No interest is accrued either as income from the PIB or as expense on this borrowing since the filing of the dispute between the Bank and the Company. These DSCs of Rs. 2.730 million are pledged as security and carry interest rate at 12.15 % per annum. These Sukuk Bonds of Liberty Power Tech Limited carry mark-up rate of 3 months KIBOR + 300 bps and have an original maturity of 12 years.
10.2.1
10.3 10.4
Annual Report 2011
35
10.5 Particulars of investment in Cumulative Preference Shares Number of Shares held 2011 2010
Investee
Note
Total nominal value 2011 2010 (Rupees '000') 25,000 25,000 30,178 80,178 25,000 25,000 50,000
Pak Elektron Limited Fazal Cloth Mills Limited Galaxy Textile Mills Limited
10.5.1 10.5.2 10.5.3
2,500,000 2,500,000 3,017,800
2,500,000 2,500,000
10.5.1 These preference shares carry fixed dividend of 9.5% on cumulative basis payable when and if declared by the Board of Directors. For redemption, the call option can be exercised by PEL up to 100% after three years of the issue date at 1% premium on the issue price. 10.5.2 These preference shares are redeemable upon the exercise of a call option by the company after completion of three years from the issue date. 10.5.3 These preference shares are non voting and convertible into ordinary shares after 10 years. These preference shares bears a fixed return at the rate of 5% per annum that will be non cumulative for the first five years and thereafter will be cumulative from year to year. 10.6 Particulars of investment in Listed Shares / Certificates Number of Shares / Certificates held 2011 2010 Available-for-sale Abbott Laboratories (Pakistan) Limited Adamjee Insurance Company Limited Agriauto Industries Limited Awan Textile Mills Limited Bank Alfalah Limited Bank AL Habib Limited Brother Textile Mills Limited Dewan Farooq Motors Limited Fatima Fertilizer Company Limited First Fidelity Lease Modaraba First National Bank Modaraba First Tawakal Modaraba Glamour Textile Mills Limited GlaxoSmithKline Pakistan Limited Habib Insurance Company Limited Ibrahim Fibres Limited Karam Ceramics Limited KSB Pumps Company Limited Lafarge Pakistan Cement Limited GDR (formerly Pakistan Cement Limited) 721,281 1,533,330 39,000 390,449 87 1 581,880 446,774 200,000 568,977 *1,613,557 300 429,146 111,017 10,000 738,086 1,533,330 311,572 39,000 1,000,000 742,041 87 944,225 195,349 1 699,751 446,774 200,000 576,254 *1,533,457 300 430,146 114,774 10,000 149,705 172,304 390 10,928 2 4,946 5,016 95,192 83,772 5 8,321 20,044 2,819 151,814 172,304 21,504 390 14,339 24,023 2 30,184 2,755 5,948 5,016 110,407 89,231 5 8,326 20,554 2,819
Cost of Investment 2011 2010 (Rupees '000')
36
Annual Report 2011
Number of Shares / Certificates held 2011 2010 Available-for-sale LTV Capital Modaraba Redeemable Capital Millat Tractors Limited Mohib Textile Mills Limited Security Investment Bank Limited Security Papers Limited Sitara Chemical Industries Limited Tariq Glass Industries Limited Tawakal Garment Limited The Hub Power Company Limited Trust Modaraba Yousuf Weaving Mills Limited Total Listed Shares / Certificates Percentage of holding *171,473 408,592 5 10 105,126 6,349,212 150,000 7,289,451 100 100 *171,473 413,592 5 10 151,538 105,862 2,116,404 150,000 8,314,581 100 100 5,573 152,971 33,640 90,022 237,805 1 2 1,073,458 Number of Shares held 2011 10.7 Particulars of Unlisted Shares Pakistan Export Finance Guarantee Agency Limited Chief Executive: Syed Mohammad Zaeem 10.7.1 Central Depository Company of Pakistan Limited Chief Executive: Mr. Muhammad Hanif Jakhura Crescent Capital Management (Private) Limited Chief Executive: Mr. Mahmood Ahmed Equity Participation Fund Limited Chief Executive: Mr. S. Shabahat Hussain Pakistan Textile City (Private) Limited Chief Executive: Mr. Zaheer A. Hussain National Investment Trust Limited Chief Executive: Mr. Wazir Ali Khoja Sunbiz (Private) Limited Chief Executive: Mr. Nisar Ahmed SWIFT Chief Executive: Mr. Lazaro Campos 2010 5,573 150,910 7,442 33,735 37,113 271,049 1 2 1,165,446 Cost of Investment 2011 2010 (Rupees '000')
Note
5.26%
568,044
568,044
5,680
5,680
10.7.2
5.00%
3,250,000 2,500,000
5,000
5,000
10.7.3
4.88%
100,000
100,000
1,000
1,000
10.7.4
0.97%
**5,087
**5,087
509
509
10.7.5
4.00%
5,000,000 5,000,000
50,000
50,000
10.7.6
8.33%
**79,200
**79,200
100
100
10.7.7
4.65%
10,000
10,000
1,000
1,000
10.7.8
8.09%
***9
***9
2,803 66,092
2,760 66,049
Annual Report 2011
37
10.7.1 This investment is fully provided in these unconsolidated financial statements. 10.7.2 Value of investment, based on the net assets stated in the audited financial statements of investee company as at June 30, 2011 amounts to Rs. 80.646 million. 10.7.3 This investment is fully provided in these unconsolidated financial statements. 10.7.4 Value of investment, based on the net assets stated in the audited financial statements of investee company as at June 30, 2008 amounts to Rs. 11.477 million. 10.7.5 Value of investment, based on the net assets stated in the audited financial statements of investee company as at June 30, 2011 amounts to Rs. 38.013 million. 10.7.6 Value of investment, based on the net assets stated in the audited financial statements of investee company as at June 30, 2011 amounts to Rs. 1,140.824 million. 10.7.7 This investment is fully provided in these unconsolidated financial statements. 10.7.8 Value of investment, based on the net assets stated in the audited financial statements of investee company as at December 31, 2010 amounts to Rs. 2.785 million. Number of Certificates held 2011 10.8 Particulars of investment in Listed Term Finance Certificates Investee Askari Bank Limited Azgard Nine Limited Bank Alfalah Limited Bank AL Habib Limited Engro Fertilizer Limited (formerly Engro Corporation Limited) Escorts Investment Bank Limited Orix Leasing Pakistan Limited PACE Pakistan Limited Pakistan Mobile Communications Limited Soneri Bank Limited Summit Bank Limited Telecard Limited United Bank Limited 53,120 10,000 60,000 8,500 223,438 2,016 76,400 6,000 24,000 6,000 10,000 74,888 45,000 37,320 10,000 60,000 8,500 199,038 2,016 71,400 6,000 24,000 6,000 74,888 65,000 267,238 37,509 300,047 28,260 1,102,224 3,022 63,155 29,964 59,904 22,446 50,000 137,607 210,315 2,311,691 10.9 Particulars of investment in Unlisted Term Finance Certificates Avari Hotels Limited New Khan Transport Company (Private) Limited Power Holdings (Private) Limited 30,400 20,000 30,400 20,000 557,800 129,070 29,306 158,376 129,070 50,544 2,789,000 2,968,614 186,500 37,584 300,197 42,398 978,687 5,036 173,912 29,976 99,840 29,934 136,052 301,727 2,321,843 2010 Amortized cost 2011 2010 (Rupees '000')
38
Annual Report 2011
Number of Units / Certificates held 2011 10.10 Particulars of investment in Mutual Funds Atlas Money Market Fund Faysal Savings Growth Fund First Dawood Mutual Fund JS Growth Fund JS Large Capital Fund NAFA Government Securities Liquid Fund NAFA Savings Plus Fund Pakistan Strategic Allocation Fund 900,000 227,410 64,211 98,500 951,022 900,000 227,410 38,509 1,500,000 1,500,000 8,370,000 6,975 2,911 3,119 13,005 Number of Shares / Units / Certificates 2011 10.11 Particulars of investment in Associates PICIC Energy Fund PICIC Growth Fund PICIC Insurance Limited PICIC Investment Fund 11,130,160 15,132,858 10,499,993 41,544,649 11,130,160 15,132,858 10,499,993 41,544,649 83,476 510,917 345,900 633,539 1,573,832 10.12 Particulars of investment in Subsidiaries PICIC Asset Management Company Limited Financial and Management Services (Private) Limited 10.16 ** 299,999,993 299,999,995 4,584,017 88,850 88,850 724 4,584,741 Unless otherwise stated, holdings in modaraba certificates and ordinary shares are of Rs. 10 each. * Shares / Modaraba Certificates of Face Value of Rs. 5 each ** Shares / Modaraba Certificates of Face Value of Rs. 100 each *** Shares of Face Value of Euro 2,680 each All Term Finance Certificates are of Original Face Value of Rs. 5,000 each 4,584,017 724 4,584,741 83,476 510,917 345,900 633,539 1,573,832 2010 50,000 100,000 6,975 2,911 3,119 15,000 15,000 76,167 269,172 2010 Cost of Investment 2011 2010 (Rupees '000')
Note
Annual Report 2011
39
2011 (Rupees '000') 10.13 Particulars of provision for diminution in value of investments Opening balance Charge for the year Reversals for the year - Term Finance Certificates - Associates Reversal due to sale / change in category Closing balance 10.14 Particulars of Provision in respect of Type and Segment Available-for-sale securities - Listed shares / Certificates / Units - Unlisted shares - Term Finance Certificates Associates - Listed shares / Certificates / Units Subsidiaries - Unlisted shares 432,836 49,845 80,561 563,242 690,585 724 1,254,551 407,436 15,837 50,544 473,817 474,231 724 948,772 948,772 416,505 (21,238) 395,267 (89,488) 1,254,551 1,053,969 284,915 (3,015) (157,379) 124,521 (229,718) 948,772 2010
2011
2010
(Rupees '000') Rating (Rupees '000') Rating 10.15 Quality of Available-for-Sale Securities - at Market Value Federal Government Securities Market Treasury Bills Pakistan Investment Bonds Defense Savings Certificates Sukuk Bonds Cumulative Preference shares Pak Elektron Limited Fazal Cloth Mills Limited Galaxy Textile Mills Limited Ordinary shares of Listed Companies Abbott Laboratories Pakistan Limited Adamjee Insurance Company Limited Agriauto Industries Limited 26,634,300 9,038,705 2,730 528,774 25,000 25,000 30,178 71,977 71,315 Unrated Unrated Unrated Unrated BBB/A3 A-/A2 * * AA 30,956,373 3,389,587 8,501 505,126 25,000 25,000 80,998 134,166 23,742 Unrated Unrated Unrated Unrated A/A1 A-/A2 * AA *
40
Annual Report 2011
2011 2010
(Rupees '000') Rating (Rupees '000') Rating Bank AL Habib Limited Bank Alfalah Limited Dewan Farooq Motors Limited Fatima Fertilizer Company Limited First National Bank Modaraba GlaxoSmithKline Pakistan Limited Habib Insurance Company Limited Karam Ceramics Limited K.S.B. Pumps Limited Millat Tractors Limited Security Papers Limited Sitara Chemicals Industries Limited Tariq Glass Limited The Hub Power Company Limited Ordinary shares of Unlisted Companies Central Depository Company of Pakistan Limited Crescent Capital Management (Private) Limited Equity Participation Fund Limited National Investment Trust Limited Pakistan Export Finance Guarantee Agency Limited Pakistan Textile City (Private) Limited Sun Biz (Private) Limited SWIFT Units / Certificates of Mutual Funds Atlas Money Market Fund Faysal Saving Growth Fund First Dawood Mutual Fund JS Growth Fund JS Large Capital Fund NAFA Government Securities Liquid Fund NAFA Savings Plus Fund Pakistan Strategic Allocation Fund Term Finance Certificates Askari Bank Limited Avari Hotels Limited Azgard Nine Limited Bank Alfalah Limited Engro Fertilizer Limited (formerly Engro Corporation Limited) Escorts Investment Bank Limited New Khan Transport Company (Private) Limited Orix Leasing Pakistan Limited PACE Pakistan Limited 11,140 4,160 38,167 15,894 2,189 2,699 149,222 7,590 52,063 249,299 5,000 1,000 509 100 5,680 50,000 1,000 2,803 1,530 1,069 2,462 271,226 129,070 18,785 308,454 1,104,900 2,228 29,306 61,586 29,964 AA+/A1+ A+/A-1 * A+ * * * A+/A-1 * AA+/A1+ * * * AM2 * * * * FR 2-STAR / 2-STAR * * AAA-(SO) D AAAA BB * AA+ D 26,906 11,210 2,153 2,204 4,604 50,820 21,545 3,355 6,899 206,705 6,798 13,524 43,429 311,048 5,000 1,000 509 100 5,680 50,000 1,000 2,760 50,777 100,000 1,800 1,262 2,509 15,467 15,424 70,308 188,735 129,070 18,110 294,916 982,381 4,996 50,544 176,941 29,096 AA+/A1+ AA / A1+ * A/A1 A+/A-1 * A+ * * * AAA / A-1+ AA-/A-1 * AA+/A1+ * * * AM2 * * * * AA+(f) A(f) FR 2-STAR / 3-STAR FR 3-STAR * AAA(f) AA-(f) FR 4-STAR AAACCC(RW) AAAA A * AA+ A+(-)
Annual Report 2011
41
2011 2010
(Rupees '000') Rating (Rupees '000') Rating Pakistan Mobile Communication Limited Power Holdings (Private) Limited Summit Bank Limited Telecard Limited United Bank Limited 60,066 48,066 134,697 199,123 39,429,026 * Rating not available 10.16 As per BSD circular No. 6 of 2007 dated September 6, 2007, investments in subsidiaries and associates are required to be reported separately and should be carried at cost. However, as per IAS 36, these need to be tested for impairment, if there is indication that such impairment may exist. Management has tested the investment in its subsidiary, PICIC Asset Management Company Limited for impairment using a value in use calculation. The value in use calculation indicates that the value of the investment in the subsidiary exceeds the cost of investment, therefore no impairment was made during the year. Note 11. ADVANCES
Loans, cash credits, running finance, etc. - in Pakistan Net investment in finance lease - in Pakistan Bills discounted and purchased (excluding Treasury Bills) Payable in Pakistan Payable outside Pakistan Advances - Gross Provision against non performing advances - Specific - General 11.4 11.5 Advances - Net of provision 11.1 11.3 77,735,586 1,975,733 225,889 4,534,870 84,472,078 (23,345,559) (282,139) (23,627,698) 60,844,380 91,956,269 2,310,162 247,310 3,830,813 98,344,554 (22,826,463) (952,076) (23,778,539) 74,566,015
A+ * A (SO) D AA
99,822 2,789,000 128,904 285,137 41,360,941
A+ * BBB AA
2011 2010 (Rupees '000')
11.1
This includes a sum of Rs. 72.337 million (2010: Rs. 72.337 million) representing unrealized exchange gain, which has not been recognised as income and deferred in these unconsolidated financial statements, in accordance with the policy of the Bank, as stated in note 6.16.
Particulars of advances 79,145,864 5,326,214 84,472,078 93,953,934 4,390,620 98,344,554 81,579,926 16,764,628 98,344,554
11.2
11.2.1 In local currency In foreign currencies
11.2.2 Short term (for upto one year) Long term (for over one year)
71,454,623 13,017,455 84,472,078
42
Annual Report 2011
11.3 Net Investment in Finance Lease
2011 Not later than one year Later than one and less than five years Over five years Total
(Rupees '000') Lease rentals receivable Residual value Minimum lease payments Financial charges for future periods (including income suspended) Present value of minimum lease payments 1,835,620 530,913 2,366,533 (419,332) 1,947,201 31,545 31,545 (3,013) 28,532 2010 Not later than one year Later than one and less than five years Over five years Total 1,867,165 530,913 2,398,078 (422,345) 1,975,733
(Rupees '000') Lease rentals receivable Residual value Minimum lease payments Financial charges for future periods (including income suspended) Present value of minimum lease payments 1,940,975 731,926 2,672,901 (428,917) 2,243,984 48,101 25,282 73,383 (7,205) 66,178 1,989,076 757,208 2,746,284 (436,122) 2,310,162
11.3.1 A major portion of these leases are non performing against which provision of Rs. 1,433.547 million has been held. 11.4 Advances include Rs. 34,194.582 million (2010: Rs. 34,711.468 million) which have been placed under non-performing status as detailed below:
2011 Note Classified Advances Domestic Overseas Total Provision Required Domestic Overseas Total Provision Held Domestic Overseas Total
(Rupees '000')
Category of Classification Substandard Doubtful Loss 11.4.1 3,163,483 1,914,497 29,116,602 34,194,582 3,163,483 1,914,497 604,976 348,750 604,976 348,750 604,976 348,750 604,976 348,750 22,391,833 23,345,559
29,116,602 22,391,833 34,194,582 23,345,559
22,391,833 22,391,833 23,345,559 23,345,559
Annual Report 2011
43
2010 Classified Advances Domestic Overseas Total Provision Required Domestic Overseas Total Provision Held Domestic Overseas Total
(Rupees '000')
Category of Classification Substandard Doubtful Loss 6,276,443 5,966,804 22,468,221 34,711,468 6,276,443 5,966,804 1,353,623 2,859,483 1,353,623 2,859,483 1,353,623 2,859,483 1,353,623 2,859,483 18,613,357 22,826,463
22,468,221 18,613,357 34,711,468 22,826,463
18,613,357 18,613,357 22,826,463 22,826,463
11.4.1 Included in the Provision required is an amount of Rs. 594.565 million (2010: Rs. 1,329.967 million) which represents provision in excess of the requirements of the State Bank of Pakistan. 11.4.2 In accordance with BSD Circular No. 1 dated October 21, 2011 issued by the State Bank of Pakistan, the Bank has availed the benefit of FSV against the non-performing advances. Had the benefit of FSV not been availed by the Bank the specific provision against non-performing advances for the year ending December 31, 2011 would have been higher by Rs. 3,823.874 million (cumulative upto December 31, 2011: Rs. 6,948.242 million) and profit after tax for the year ending December 31, 2011 would have been lower by approximately Rs. 3,823.874 million (cumulative upto December 31, 2011: Rs. 5,854.713 million). Increase in profit would not be available for the distribution of cash and stock dividend to shareholders. 11.5 Particulars of provision against non-performing advances 2011 Note Specific General Total Specific (Rupees '000') Opening balance Charge for the year Reversals Amounts written off Closing balance 11.6 22,826,463 5,754,521 (2,729,510) 3,025,011 (2,505,915) 23,345,559 952,076 (669,937) (669,937) 282,139 23,778,539 5,754,521 (3,399,447) 15,746,457 10,603,469 (1,450,127) 232,894 804,406 (85,224) 719,182 952,076 15,979,351 11,407,875 (1,535,351) 9,872,524 (2,073,336) 23,778,539 2010 General Total
2,355,074 9,153,342 (2,505,915) (2,073,336) 23,627,698 22,826,463
11.5.1 Particulars of provision against non-performing advances - currency wise 2011 Specific General Total Specific (Rupees '000') In local currency In foreign currencies 23,345,559 23,345,559 282,139 282,139 23,627,698 23,627,698 22,826,463 22,826,463 952,076 952,076 23,778,539 23,778,539 2010 General Total
44
Annual Report 2011
Note 11.6 Particulars of write offs: 2,505,915 15,802 2,521,717 11.6.2 Write offs of Rs. 500,000 and above Write offs of below Rs. 500,000 11.7 11.7 254,056 2,267,661 2,521,717 11.7 Details of loan write offs of Rs. 500,000 and above In terms of sub-section (3) of section 33A of the Banking Companies Ordinance, 1962, the statement in respect of written off loans or any financial relief of five hundred thousand rupees or above allowed to person(s) during the year ended December 31, 2011 is given in Annexure 1. However, this write off does not affect the Bank's right to recover these debts from any of its customers. 11.8 Particulars of loans and advances to directors, associated companies etc. Debts due by directors, executives or officers of the Bank or any of them either severally or jointly with any other persons Note Balance at the beginning of the year Additions / granted during the year Repayments / transferred during the year Balance at the end of the year 2011 (Rupees '000') 1,384,159 594,180 (777,352) 1,200,987 1,347,471 603,631 (566,943) 1,384,159 2010 2,073,336 53,359 2,126,695 222,174 1,904,521 2,126,695 2011 (Rupees '000') 2010
11.6.1 Against provisions Directly charged to profit and loss account
Debts due by subsidiary companies, controlled firms, managed modarabas and other related parties Balance at the beginning of the year Loans granted during the year Repayments during the year Balance at the end of the year 12. OPERATING FIXED ASSETS Capital work in progress Property and equipment 12.1 Capital work in progress Civil works Equipment and electrical work Advances to suppliers and contractors Advance for computer software Others 1,123 154,980 6,205 162,308 49,652 2,431 2,460 4,114 1,021 59,678 12.1 12.2 162,308 2,531,487 2,693,795 59,678 2,659,297 2,718,975 29,797 85,381 (90,181) 24,997 53,170 (23,373) 29,797
Annual Report 2011
45
46
2011 C O S T As at Note 01, 2011 (Rupees '000') (Deletions) Adjustment (Write - offs) 31, 2011 01, 2011 (on deletions) Adjustment (Write-offs) 31, 2011 31, 2011 January Additions / December as at January year / as at December December % per annum As at Accumulated For the Accumulated Net Book Rate of value as at Depreciation DEPRECIATION
12.2
Property and Equipment
Particulars
Freehold land 12.2.3 584,330 158,073 224,454 (2,866) 1,345,818 (5,188) 32,642 (835) 756,810 (243) 4,503,200 (9,132) (452) 147,728 4,641,344 1,843,903 (191) 273,601 (7,602) (45) 2,109,857 76,949 833,516 520,476 36,108 (835) 556,393 3,451 35,258 20,842 4,793 (4,989) 24,800 60,127 1,400,757 953,708 174,741 (452) (1,587) (45) 1,123,460 7,201 228,337 111,048 20,610 158,073 33,190 7,661 40,851 130,026 584,330 189,005 29,688 218,693 1,064,456 1,064,456 15,634 15,634
336,617
336,617
336,617 1,048,822 365,637 117,222 98,311
5% 5% 10%
Leasehold land
Buildings on freehold land
Buildings on leasehold land
Furniture and fixtures
Electrical, office and computer equipment
277,297 10% to 33% 10,458 277,123 2,531,487 20% 10%
Vehicles
Leasehold Improvements
12.2.1
Included in cost of property and equipment are fully depreciated items still in use having cost of Rs. 949.233 million (2010: Rs. 748.266 million).
12.2.2
Carrying amount of temporarily idle property is Rs. 891.219 million (2010: Rs. 910.138 million).
12.2.3
This includes a plot of land costing Rs. 361 million in Block-6, KDA Scheme-5, Clifton, Karachi (the Plot), possession of which was taken by the Bank (formerly PICIC) in April 1983 pursuant to an allotment order by City District Government Karachi (CDGK) (formerly Karachi Development Authority). All the legal dues in respect of the Plot including Non-utilization Fees have been paid. In 2000, CDGK cancelled the allotment unilaterally based on certain building and construction restrictions. The Bank filed a Civil Suit against CDGK before the High Court of Sindh in respect of the said unilateral cancellation of the allotment. Meanwhile, also in 2000, a dispute arose with KPT in respect of construction of a boundary wall on the Plot by KPT as KPT claimed that the land had been reverted to KPT. The said claim by KPT was also challenged by way of Civil Suit before the High Court of Sindh. The High Court of Sindh initially issued restraining orders against CDGK and KPT in the respective suits in respect of cancellation of the allotment of the Plot. Subsequently, both the suits were decided in favor of the Bank. In the suit filed against CDGK, the High Court of Sindh held that the action of cancellation of the allotment by CDGK was improper and void, whereas, in the suit against KPT, the High Court of Sindh held that since allotment in favor of the Bank was valid therefore, KPT had no standing to claim that the land had been reverted back to KPT. Both the decisions of the High Court of Sindh are currently being challenged in two separate High Court Appeals by CDGK and KPT and the same are still pending. Furthermore, in November 2008, KPT filed a Civil Suit seeking a declaration from the High Court of Sindh to the effect that the Plot had been validly reverted to KPT. At present, the Bank is actively defending the case.
Annual Report 2011

2010 C O S T As at Note 01, 2010 (Rupees '000') (Deletions) Transfers (Write - offs) 31, 2010 01, 2010 (on deletions) Transfers (Write-offs) 31, 2010 31, 2010 January Additions / December as at January year / as at December December % per annum As at Accumulated For the Accumulated Net Book Rate of value as at Depreciation DEPRECIATION
Annual Report 2011

336,617 12.2.3 584,330 158,073 241,668 (5,459) 1,358,350 (5,446) 35,472 (537) 957,151 (1,103) 4,736,117 (12,545) 170,390 2,271 (393,033) 4,503,200 1,785,865 (805) 386,964 (8,735) 1,931 (322,122) 1,843,903 2,659,297 54,762 7,252 (261,252) 756,810 624,343 96,418 (531) 1,920 (201,400) 520,476 236,334 10% 39 (2,332) 32,642 18,190 5,515 (4,682) (2,332) 20,842 11,800 20% 111,891 (5,806) (113,171) 1,345,818 841,732 227,579 (1,560) (109,361) (2,717) 953,708 392,110 10% to 33% 3,698 825 (16,278) 224,454 98,852 22,371 1,571 (9,029) 158,073 25,551 7,639 33,190 111,048 584,330 161,563 27,442 189,005 1,064,456 1,064,456 15,634 15,634 336,617 336,617 1,048,822 395,325 124,883 113,406 5% 5% 10%
Cost (Rupees '000') Accumulated depreciation Book value Sales proceeds Mode of disposal Particulars of buyer
Particulars
Freehold land
Leasehold land
Vehicles
12.2.4
Detail of disposal of property and equipment during the year
Description
Vehicles
835
835
493
EX-PICIC SERVICES RULES
TAHSIN AHMED MAHMUDI
Items individually having cost less than Rs. 1 million or net book value not exceeding Rs. 0.25 million 1,899 2,866 243 3,289 8,297 9,132 12,545 6,767 7,602 8,735 1,879 1,587 191 3,110 20 1,279 52 179 1,530 1,530 3,810 239 1,857 639 824 3,559 4,052 3,078
- Computer Equipment - Furniture and fixtures - Leasehold improvements - Office equipment
Sub Total
2011
2010
47
48
COST As at January 01, 2011 Additions (Rupees '000') As at December 31, 2011 Accumulated as at January 01, 2011 Amortization for the year Accumulated as at December 31, 2011 Net Book value as at December 31, 2011 Rate of Amortization % per annum 2011 AMORTIZATION / IMPAIRMENT
13. INTANGIBLE ASSETS
Particulars
Core Deposit Relationships Core Overdraft/Working Capital Loan Relationships Brand Computer Software 124,149 204,116 832,587 3,650,305 3,886 3,654,191 1,231,157 368,608 1,599,765 2,054,426 3,886 124,149 204,116 836,473 73,953 142,883 222,223 6,693 40,822 94,779 80,646 183,705 317,002 43,503 20,411 519,471 9.09% 20% 10% to 50%
2,489,453
2,489,453
792,098
226,314
1,018,412
1,471,041
9.09%
13.1
2010 COST As at January 01, 2010 Additions (Rupees '000') AMORTIZATION / IMPAIRMENT
Included in cost of computer software are fully amortized items still in use having cost of Rs. 102.952 million (2010: Rs. 88.359 million.)
Particulars
As at Accumulated Amortization Accumulated as at Transfers Adjustments (Write-offs) December as at January for the year Transfers Adjustments (Write-offs) December 31, 2010 01,2010 31, 2010
Net Book Rate of value as at Amortization December % 31, 2010 per annum
Goodwill 2,489,453 124,149 204,116 767,638 28,846,828 95,052 (2,271) (25,261,472) 95,052 (2,271) (27,832) 832,587 204,116 102,060 128,453 124,149 67,260 2,489,453 565,784 226,314 6,693 40,823 97,395 371,225
25,261,472
(25,261,472)
1,040,000
(1,931)
(1,040,000) (1,931) (1,040,000)
(1,694)
792,098 1,697,355 73,953 142,883 222,223 50,196 61,233 9.09 % 9.09 % 20 % 610,364 10% to 50% (1,694) 1,231,157 2,419,148
Core Deposit Relationships
Core Overdraft/Working Capital Loan Relationships
Brand
Computer Software
(27,832) 3,650,305 1,903,557
13.2
Goodwill
From an accounting perspective, at the time of the acquisition and merger of Pakistan Industrial Credit and Investment Corporation Limited (PICIC) and PICIC Commercial Bank Limited (PCBL) into the Bank, goodwill of Rs. 25,261 million was created on the books of the Bank, which reflected the value that was paid for the PICIC and PCBL shares over the fair value of net assets. It is the Bank's view that it will derive substantial value from businesses, customers and the branch network acquired in the merger with PICIC and PCBL. Under the new strategies, this value will be derived more from the liabilities side of the business as opposed to the assets side. As the original intent of how value would be derived has been changed for now the Bank has decided to adjust the Goodwill that it is carrying on the books in a manner that is consistent with its new business realities. Consequently in 2010, the Bank has adjusted the full amount of the goodwill appearing in its books at Rs. 24,221 million directly into equity and the State Bank of Pakistan has indicated its No Objection to this accounting treatment.
13.3
Annual test for impairment
Intangibles
Annual Report 2011
In the current year, the Bank assessed the recoverable amount of core overdraft / working capital loan relationships, core deposit relationships and brand and determined that no impairment loss exists.
Note 2011 2010 (Rupees '000')
14.
DEFERRED TAX ASSETS Deferred debits arising due to: Provision against loans and advances Provision against other receivables Provision against balances with other banks Gratuity Unused tax losses Intangibles Excess of tax base of government securities / investments over accounting base 8,880,336 259,790 3,699,934 25,911 429,189 13,295,160 Deferred credits arising due to: Excess of accounting base of leased asset over tax base Accelerated accounting depreciation on owned assets Fair valuation of subsidiaries and associates Surplus / (Deficit) on revaluation of securities Unrealised exchange gains Unrealised exchange losses Deferred tax Assets Unrecognised deferred tax assets Recognised deferred tax assets (140,383) (734,069) (511,079) (39,648) (2,377) (33,604) (1,461,160) 11,834,000 (817,000) 11,017,000 (116,322) (736,614) (532,714) 55,299 (2,377) (33,604) (1,366,332) 9,480,983 9,480,983 7,329,965 281,304 1,387 6,943 2,777,890 35,834 413,992 10,847,315
14.2 14.3
14.1
14.1 The deferred tax asset recognised in the books have been restriced to Rs. 11,017 million due to uncertainty of availability of future tax profits for utilization of the unrecognised deferred tax assets. The deductible differences available to the Bank are Rs. 11,834 million. Had these been taken completely, the profit after tax would be higher by Rs 817 million. The management has recorded deferred tax asset based on financial projections indicating realisibility of deferred tax asset over a number of future years through reversals as a result of recoveries from borrowers and realisibility of remaining deferred tax asset against future taxable profits. The financial projections involve certain key assumptions such as deposits composition, interest rates, growth of deposits and advances, investment returns and potential provision / reversals against assets. Any significant change in the key assumptions may have an effect on the realisibility of the deferred tax asset. 14.2 In 1987 and 1989, the Bank (formerly PICIC) exercised its option to avail the exchange risk coverage offered by the Government of Pakistan, Ministry of Finance and Economic Affairs (Economic Affairs Division), through Office Memo 1(16)/50/DM/86 dated July 8, 1987 and 1(12)/50/DM/89 dated June 1, 1989 respectively and, in turn the Bank (formerly PICIC) offered the risk coverage to its Borrowers. 14.3 The unrealised exchange losses of the Bank (formerly PICIC) as on April 21, 1987, the effective date of exercise of both the options arising on related borrowings as reduced by gains arising on related advances was claimed as loss for tax purposes.
Annual Report 2011
49
14.4 Movement in temporary differences during the year:
2011
Balance as at January 01, 2011 Deferred debits arising due to: Provision against loans and advances Provision against other receivables Provision against balances with other banks Gratuity Unused tax losses Intangibles Excess of tax base of government securities / investments over accounting base Deferred credits arising due to: Excess of accounting base of leased asset over tax base Accelerated accounting depreciation on owned assets Fair valuation of subsidiaries and associates Surplus / (Deficit) on revaluation of securities Unrealised exchange gains Unrealised exchange losses Deferred tax assets Unrecognised deferred tax assets Recognised deferred tax assets
Recognised in profit and loss account
Recognised in equity
Balance as at December 31, 2011
(Rupees '000')
7,329,965 281,304 1,387 6,943 2,777,890 35,834 413,992
1,550,371 (21,514) (1,387) (6,943) 922,044 (9,923) 15,197
8,880,336 259,790 3,699,934 25,911 429,189
(116,322) (736,614) (532,714) 55,299 (2,377) (33,604) 9,480,983 9,480,983
(24,061) 2,545 21,635 2,447,964 (817,000) 1,630,964

2010
(94,947) (94,947) (94,947)
(140,383) (734,069) (511,079) (39,648) (2,377) (33,604) 11,834,000 (817,000) 11,017,000
Balance as at January 01, 2010 Deferred debits arising due to: Provision against loans and advances Provision against other receivables Provision against balances with other banks Gratuity Unused tax losses Intangibles Excess of tax base of government securities / investments over accounting base Deferred credits arising due to: Excess of accounting base of leased asset over tax base Accelerated accounting depreciation on owned assets Fair valuation of subsidiaries and associates Surplus / (Deficit) on revaluation of securities Unrealised exchange gains Unrealised exchange losses Deferred tax assets Unrecognised deferred tax assets Recognised deferred tax assets
Recognised in profit and loss account
Recognised in equity / others
Balance as at December 31, 2010
(Rupees '000')
6,393,933 281,314 1,387 14,762 731,227 60,046 412,465
1,287,791 (10) (7,819) 1,694,904 (24,212) 1,527
(351,759) 351,759
7,329,965 281,304 1,387 6,943 2,777,890 35,834 413,992
(218,511) (712,584) (521,539) 71,495 (6,007) (33,604) 6,474,384 6,474,384
102,189 (24,030) (11,175) 3,019,165 3,019,165
(16,196) 3,630 (12,566) (12,566)
(116,322) (736,614) (532,714) 55,299 (2,377) (33,604) 9,480,983 9,480,983
50
Annual Report 2011
Note 15. OTHER ASSETS Income / mark-up accrued Local currency Foreign currencies Advances, deposits, advance rent and other prepayments Advance taxation - net Non-banking assets acquired in satisfaction of claims Unrealized gain on forward foreign exchange contracts - net Receivable against sale of investments Stationery and stamps on hand Branch adjustment account Advance for purchase of term finance certificates Assets in respect of Bangladesh Insurance claim Others Liabilities in respect of Bangladesh Rupee Borrowings from Government of Pakistan in respect of Bangladesh Provisions held against other assets Other assets - net of provisions 15.1 & 15.6 15.2 15.3 2011 2010 (Rupees '000')
15.4
2,590,768 24,534 407,727 1,211,783 701,067 79,483 2,009 383,856 425,409 16,410 66,395 5,909,441 (342,416) (82,993) (1,021,625) 4,462,407
3,272,003 29,561 426,344 1,142,143 541,913 18,928 3,279 106,579 285,000 425,409 156,298 67,624 6,475,081 (342,416) (82,993) (890,883) 5,158,789
15.4
15.5
15.1 15.2
This includes Rs. 1.024 million (2010: Rs. 1.027 million) in respect of related parties. Advances, deposits, advance rent and other prepayments Advances Deposits Advance rent Prepayments 36,199 28,901 252,635 89,992 407,727 40,716 36,813 249,071 99,744 426,344
15.3
Represents cost of land, plant and machinery acquired by the Bank against advances and held for resale. The market value of the subject assets as of December 31, 2011 was Rs. 611.403 million (2010: Rs. 560 million). Provision of Rs. 105.913 million has been made against difference between cost and fair value. All the assets and liabilities as of November 30, 1971 clearly identifiable as being in or in respect of the areas now under Bangladesh and referred to above were segregated as of that date and in such segregation, for purposes of conversion of foreign currency amounts, generally speaking, the parity rates ruling prior to August 15, 1971 were used, and all income accrued or due in 1971 but not received in that year and interest accrued but not due on borrowings in 1971 was eliminated. Subsequently, consequent to the assuming by Bangladesh of certain foreign currency loan obligations as of July 1, 1974, including amounts previously identified by the Bank (formerly PICIC) as its foreign currency liabilities in respect of Bangladesh, such amounts were eliminated from the books of the Bank (formerly PICIC) by reducing an equivalent sum from its related foreign assets in that area. Arising from advices received from the lenders and as a result of diversion of shipments and of the meeting of certain contingent liabilities, there have been certain modifications to the foreign currency advances relating to
15.4
Annual Report 2011
51
Bangladesh. Furthermore, the difference between the actual amount of rupees required to remit maturities of foreign currency borrowings in respect of Bangladesh and the figures at which they appeared in the books and the interest paid to foreign lenders has been treated as increasing the rupee assets in that area. The Government of Pakistan, while initially agreeing to provide the rupee finance required for discharging current maturities of foreign currency borrowings and interest related to Bangladesh, did not accept any responsibility for PICICs assets in that area. However, following an agreement reached between PICIC and the Government of Pakistan during 1976, the Government has agreed that it would continue to provide the funds for servicing PICICs foreign currency liabilities relating to Bangladesh and has further agreed that an amount equivalent to the rupee assets in Bangladesh financed from PICICs own funds not exceeding Rs. 82 million would be deemed to have been allocated out of the rupee loans by the Government and that such allocated amount together with the rupee finance being provided by the Government including any interest thereon would not be recovered from PICIC until such time as PICIC recovers the related assets from Bangladesh and only to the extent of such recovery. Accordingly, such allocated amounts, together with the rupee finance being provided by the Government for discharging the current maturities of foreign currency borrowings (including the interest and charges thereon and any exchange difference between the final rupee payment and the amount at which the liability, commitment or contingent liability as appearing in the books relating to Bangladesh) have been treated as liabilities in respect of Bangladesh. Further, in view of the aforesaid agreement no interest is being accrued on the allocated amount of rupee loans or in respect of the rupee finance provided by the Government related to PICICs assets in Bangladesh nor is it considered necessary to provide for any loss that may arise in respect of PICICs assets in Bangladesh. 2011 2010 (Rupees '000') 890,883 192,211 (15,610) (45,859) 1,021,625 823,598 67,316 (31) 890,883
15.5
Particulars of provision against other assets Opening balance Charge for the year Reversals Write offs Closing balance
15.6
16.
This includes a sum of Rs. 30.466 million (2010: Rs. 30.466 million) representing unrealised exchange gain, which has not been recognised as income and deferred in the financial statements, in accordance with the policy of the Bank, as stated in note 6.16. 2011 2010 (Rupees '000') BILLS PAYABLE In Pakistan Outside Pakistan 1,660,205 78,217 1,738,422 1,266,884 68,609 1,335,493
17.
BORROWINGS In Pakistan Outside Pakistan 47,262,148 119,883 47,382,031 42,320,085 41,849 42,361,934
52
Annual Report 2011
Note 17.1 Particulars of borrowings with respect to currencies In local currency In foreign currencies 47,262,148 119,883 47,382,031 17.2 Details of borrowings - secured / unsecured Secured Borrowings from SBP under Export Refinance Scheme Long Term Financing Facility Long Term Finance for Export Oriented Projects Repurchase agreement borrowings Unsecured Call borrowings Overdrawn nostro accounts Foreign borrowings payable in local currency Trading liabilities 17.8 17.7 12,000 119,883 162,286 47,382,031 6,059,036 41,849 162,286 327,187 42,361,934 17.3 17.4 17.5 17.6 & 17.6.1 8,122,798 416,857 1,197,381 37,350,826 10,956,241 261,962 1,683,880 22,869,493 42,320,085 41,849 42,361,934 2011 2010 (Rupees '000')
17.3 Borrowings from SBP under Export Refinance Scheme are subject to mark-up at rate of 10% (2010: 8.50% to 9.00% ) per annum maturing within six months. 17.4 Borrowings from SBP under Long Term Financing Facility (LTFF) are subject to mark up ranging from 6.50% to 8.20% (2010: 6.50% to 8.20%) per annum maturing within ten years. 17.5 Borrowings from SBP under Long Term Finance for Export Oriented Projects are subject to mark up ranging from 4.90% to 5.00% (2010: 4.00% to 5.00%) per annum maturing within five years. 17.6 These borrowings are subject to mark-up at rates ranging from 11.63% to 11.90% (2010: 12.51% to 13.90% ) per annum maturing within sixteen days. Government securities have been given as collateral against these borrowings. 17.6.1 This includes Rs. 100 million outstanding as at December 31, 2011, which was borrowed from a Company in 2004 against pledge of a PIB. As the lender had failed to return the pledged PIB upon the maturity of the contract period, this amount is appearing as a pending transaction with a corresponding amount appearing as investment in PIBs. No interest is accrued either as expense on this borrowing or as income from the PIB since the filing of the dispute between the Bank and the Company. 17.7 These borrowings are subject to mark-up at rate of 11.25% (2010: 12.15% to 13.40% ) per annum with remaining maturity of three days. 17.8 The Government of Pakistan (GoP) has claimed an amount of Rs. 162.286 million in respect of liabilities against German credit representing principal amount of loan and Rs. 45.444 million as interest thereon till June 30, 2006. The principal amount has been accounted for and shown as payable to the GoP whereas interest has been accounted for in Other Liabilities (note 20). However, the Bank is contending that any amount of principal and
Annual Report 2011
53
interest is payable to the GoP only when recovered from the related sub-borrowers, who have availed the German credit. This also includes unrealized exchange loss of Rs. 96.011 million (2010: Rs. 96.011 million) which has been netted off against unrealized exchange gain (note 15) as it is payable when recovered from sub-borrowers, who have availed the related German credit. 2011 2010 (Rupees '000') 18. DEPOSITS AND OTHER ACCOUNTS Customers Fixed deposits Savings deposits Current accounts - Non remunerative Margin accounts Financial institutions Remunerative deposits Non-remunerative deposits 32,769,500 26,112,772 25,169,484 568,088 39,939,138 29,087,951 24,120,456 532,237
622,053 246,371 85,488,268
5,162,128 327,463 99,169,373
18.1 Particulars of deposits In local currency In foreign currencies 80,484,737 5,003,531 85,488,268 19. SUB-ORDINATED LOANS Term Finance Certificates - Quoted, Unsecured Mark-up 3,994,400 3,996,000 93,179,816 5,989,557 99,169,373
Floating (no floor, no cap) rate of return at Base Rate +1.15% [The Base Rate is defined as the average Ask Side rate of the six month Karachi Interbank Offered Rate (KIBOR)]
Subordination The TFCs are subordinated to all other indebtedness of the Bank including deposits Issue Date March 5, 2008
Issue Amount Rs. 4,000 million Rating Tenor Redemption A+ (A plus) 8 years from the Issue Date Ten equal semi-annual instalments of 0.02% of the Issue Amount for the first sixty months followed by six equal semi-annual instalments of 16.63% of the Issue Amount from the sixty-sixth month onwards March 5, 2016 The Bank can also exercise a Call Option or a Partial Call Option after obtaining written approval from the State Bank of Pakistan at any time after a period of sixty months from the Issue Date
Maturity Call Option
54
Annual Report 2011
Note 20. OTHER LIABILITIES Mark-up / return / interest payable in: Local currency Foreign currencies Unearned income on inland bills Accrued expenses Insurance premium payable Advance from lessees Unclaimed dividend Borrowing from Government of Pakistan Branch adjustment account Unrealized exchange loss - net Security and other deposits Payable to IBRD - Managed Fund Payable against purchase of investments Payable to Workers Welfare Fund Payable to defined benefit plan Security deposits against lease Others 817,085 4,571 608,615 33,143 155,343 44,965 2,095 23,333 25,846 68,220 77,279 528,493 125,017 2,514,005 21. SHARE CAPITAL 1,304,830 11,167 10,135 987,405 55,371 135,850 45,051 2,095 43,386 29,408 68,220 18,443 13,000 76,115 754,435 269,563 3,824,474 2011 2010
(Rupees '000')
34.5
21.1 Authorized 2011 2010 2011 2010
(Number of Shares) 12,000,000,000 5,000,000,000 Ordinary shares of Rs. 10 each
(Rupees '000') 120,000,000 50,000,000
21.2 Issued, subscribed and paid up Fully paid up ordinary shares of Rs. 10 each 3,278,902,659 764,824,417 6,259,124,088 10,302,851,164 3,278,902,659 764,824,417 4,043,727,076 Fully paid in cash
Issued for consideration other than cash (under schemes of amalgamation)
32,789,027 7,648,244 62,591,241 103,028,512
32,789,027 7,648,244 40,437,271
Issuance of shares on discount
21.2.1 The holding company Bugis Investments (Mauritius) Pte. Limited holds 9,132,728,598 (2010: 2,995,744,425) ordinary shares.
Annual Report 2011
55
2011 21.2.2 Reconciliation of number of ordinary shares of Rs. 10 each At the beginning of the year Right issue during the year at discount At the end of the year 2010
(Number of Shares) 4,043,727,076 6,259,124,088 10,302,851,164 2011 4,043,727,076 4,043,727,076 2010 (Rupees '000')
22.
SURPLUS / (DEFICIT) ON REVALUATION OF ASSETS - Net Surplus / (Deficit) on revaluation of available-for-sale securities Market Treasury Bills Pakistan Investment Bonds Term Finance Certificates Mutual Funds Investment in Shares of Listed Companies Related deferred tax asset / (liability)
119,439 (39,243) 24,738 1,263 25,885 132,082 (39,648) 92,434
(56,558) (184,648) 6,157 36,587 143,882 (54,580) 55,299 719
23.
CONTINGENCIES AND COMMITMENTS
23.1 Direct credit substitutes Contingent liability in respect of guarantees given favouring: Government Others
63,116 63,116
23.2 Transaction-related contingent liabilities / commitments Guarantees given in favour of: Government Financial Institutions Others 23.3 Trade-related contingent liabilities Letters of credit Acceptances 23.4 Other contingencies Claims against the Bank not acknowledged as debts 23.5 Commitments in respect of forward lending Commitments to extend credit 1,034,140 314,372 266,133 390,783
10,782,678 92,000 514,510 11,389,188 11,720,785 2,253,467 13,974,252
8,138,146 500,856 714,525 9,353,527 7,919,441 1,067,720 8,987,161
56
Annual Report 2011
The Bank makes commitments to extend credit in the normal course of its business but none of these commitments are irrevocable and do not attract any significant penalty or expense if the facility is ultimately withdrawn except commitments mentioned above. 2011 2010 (Rupees '000') 23.6 Commitments in respect of forward exchange contracts Purchase Sale 56,859,837 58,787,111 115,646,948 23.7 Commitments for the acquisition of operating fixed assets 23.8 Commitments in respect of derivatives Forward Purchase of Government Securities Forward Sale of Government Securities 487,600 47,683 44,008 66,004,625 67,312,030 133,316,655 86,310
23.9 The tax returns of income of NIB Bank Limited have been filed up to and including tax year 2011 relevant to the financial year ended December 31, 2010. The tax authorities have made certain disallowances including additions on account of proration of expenses against dividends and capital gains, disallowances of interest and administrative expenses and renovation expenses incurred on rented premises (allowed historically) pertaining to tax years 2003 through 2008 for Ex-Pakistan Industrial Credit and Investment Corporation Limited (Ex-PICIC), from tax years 2004 through 2008 for Ex-PICIC Commercial Bank Limited (Ex-PCBL), tax years 2003 and 2004 for Ex-National Development Leasing Corporation Limited (Ex-NDLC) and from tax years 2004 through 2008 for NIB Bank Limited. These disallowances may result in additional tax aggregating to Rs. 1,370 million (2010: 1,370 million), which the management of the Bank in discussion with their tax consultants believes to be unjustified and not in accordance with the true interpretation of the law. Appeals filed against orders are pending at various appellate forums. Management is confident that the eventual outcome of the cases will be in favour of the Bank. 2011 2010 (Rupees '000') 7,718,970 4,980,398 463,751 629 989,740 92,189 14,245,677 25. MARK-UP / RETURN / INTEREST EXPENSED Deposits and other accounts Securities sold under repurchase agreements Other short term borrowings Long term borrowings 6,948,513 3,023,491 1,506,903 687,874 12,166,781 7,225,240 3,342,862 2,312,127 652,931 13,533,160 10,219,090 4,595,211 463,487 10,260 1,094,491 99,541 16,482,080
24.
MARK-UP / RETURN / INTEREST EARNED On loans and advances to customers On investments in: Available-for-sale securities Held-to-maturity securities On deposits with financial institutions On securities purchased under resale agreements On call money lendings
Annual Report 2011
57
Note 26. GAIN ON SALE OF SECURITIES Market Treasury Bills Pakistan Investment Bonds Term Finance Certificates Ordinary Shares of Listed and Unlisted Companies Units of Mutual Funds Others 27. OTHER INCOME Gain / (loss) on disposal of property and equipment Service charges Rent Gain on trading liabilities Income from non-banking assets and profit from sale of / or dealing with such assets Others 2011 (Rupees '000') 163,928 29,846 6,378 8,786 45,118 20,456 274,512 2,522 7,007 1,631 9,997 21,157 28. ADMINISTRATIVE EXPENSES Salaries, allowances, etc. Charge for defined benefit plan Contribution to defined contribution plan Non-executive directors' fees, allowances and other expenses Brokerage and commission Rent, taxes, insurance, electricity, etc. Legal and professional charges Communication Repairs and maintenance Stationery and printing Advertisement and publicity Fees and subscriptions Auditors remuneration Depreciation Amortization Travelling, conveyance and vehicles running Security services Fixed assets written off Others 34.4 2,083,603 23,194 83,338 6,792 48,386 880,603 65,152 158,369 278,253 68,324 69,710 80,719 8,578 273,601 368,608 31,427 120,188 66,129 4,714,974 28.1 Auditors' remuneration Audit fee including fee for branch audit Audit fee of consolidated financial statements Review fee Special certifications and sundry advisory services Out-of-pocket expenses 4,300 750 1,100 1,752 676 8,578 4,300 750 1,100 1,375 676 8,201 3,715,562 24,727 121,204 5,709 44,530 967,484 196,743 207,399 284,665 81,377 20,816 74,706 8,201 386,964 371,225 30,153 137,628 159,680 116,375 6,955,148 (5,359) (8,185) 15,088 292,514 26,794 8,068 328,920 (732) 7,977 3,262 3,417 10,551 24,475 2010
28.1 12.2 13
58
Annual Report 2011
28.2 No donation was paid during the year in which any of the Directors or their spouses had any interest. Note 29. OTHER CHARGES Penalties imposed by the State Bank of Pakistan Others 2011 (Rupees '000') 56,122 (13,757) 42,365 135,126 (13,208) 121,918 2010
30.
TAXATION For the year Current Prior years Deferred 163,978 30,658 (1,630,964) (1,436,328) 181,974 327,748 (3,019,165) (2,509,443)
30.1 Relationship between tax expense and accounting profit Accounting Profit / (loss) for the year Tax @ 35% of above SBP penalty not tax deductible Adjustment in respect of tax at reduced rates Consumer & SME provision in excess of 5% booked in June 2011 instead of December 2010 Unrecorded deferred tax asset due to uncertainity over availability of future tax profits General provision reversal not recognized for tax purposes Minimum tax based on turnover independent of loss Tax charge for prior year Tax credit as reported 31. BASIC / DILUTED EARNINGS / (LOSS) PER SHARE Loss after taxation (Rs. '000') Weighted average number of ordinary shares outstanding during the year (in '000') Loss per share - basic / diluted (Rupees) 32. CASH AND CASH EQUIVALENTS Cash and balances with treasury banks Balances with other banks 7 8 7,969,044 1,486,830 9,455,874 8,836,449 2,951,479 11,787,928 (2,044,090) 5,998,632 (0.34) (10,112,114) 4,043,727 (2.50) (3,480,418) (1,218,146) 19,643 70,189 (1,085,172) 817,000 (234,478) 163,978 30,658 (1,436,328) (12,621,557) (4,417,545) 47,294 (13,669) 1,085,172 279,583 181,974 327,748 (2,509,443)
Annual Report 2011
59
2011 33. STAFF STRENGTH Permanent Temporary / on contractual basis Bank's own staff strength at the end of the year Outsourced Total staff strength 34. DEFINED BENEFIT PLAN (Numbers) 2,300 25 2,325 346 2,671 2,853 29 2,882 713 3,595 2010
34.1 The benefits under the gratuity scheme are payable in lump sum on retirement at the age of 60 years or earlier cessation of services. The benefit is equal to one month's last drawn basic salary for each year of confirmed service, subject to a minimum of five years of service. 34.2 Principal actuarial assumptions The actuarial valuation is carried out periodically. The actuarial valuation was carried out for the year ended December 31, 2011 using the "Projected Unit Credit Method". The main assumptions used for actuarial valuation are as follows: Gratuity 2011 - Valuation discount rate - Salary increase rate - Mortality rate - Withdrawal rate
Note 34.3 Reconciliation of (receivable from) / payable to defined benefit plan Present value of defined benefit obligations Unrecognized prior service cost Net actuarial gains / (loss) not recognized Assumed on amalgamation Net liability / (receivable) 34.4 (Income) / charge for defined benefit plan Current service cost Software project expense capitalized Interest cost Actuarial (gain) recognized Amortization of prior service cost 34.5 Movement in balance (receivable) / payable Opening balance Adjustment Expense recognized Software project expense capitalized Benefits paid to outgoing members Assumed on amalgamation Closing balance 76,115 1,386 23,194 (23,416) 77,279 77,279 73,731 24,727 (22,343) 76,115 76,115 57,057 17,901 829 (2,056) 73,731 73,731 (32,128) 12,822 (271) (19,577) 76,634 57,057 32,859 11,647 44,506 (76,634) (32,128) 11,626 11,568 23,194 14,660 10,067 24,727 13,962 (829) 6,398 (1,630) 17,901 10,922 3,834 (303) (1,631) 12,822 10,808 2,751 (281) (1,631) 11,647 34.6 71,098 6,181 77,279 77,279 79,459 (3,344) 76,115 76,115 81,502 (7,771) 73,731 73,731 58,963 1,630 (3,536) 57,057 57,057 33,919 3,261 7,326 44,506 (76,634) (32,128)
2010
13.0% 14.5% 12.0% 13.5% Based on LIC 1975-79 Ultimate Mortality table Heavy (double of moderate) Age - Wise withdrawal rates
2011 2010 2009 (Rupees '000') 2008 2007
60
Annual Report 2011
2011 2010 2009 (Rupees '000') 2008 2007
34.6 Summary of valuation results for the current and previous periods
Present value of defined benefit obligations Fair value of plan assets Deficit Experience (gain) / loss on obligation 71,098 71,098 (8,139) 79,459 79,459 (4,427) 81,502 81,502 4,235 58,963 58,963 10,559 33,919 33,919 (1,749)
2011 34.7 Reconciliation of present value of defined benefit obligations Opening balance Current service cost Interest cost Benefits paid Actuarial (gain) / loss on obligations Closing balance 34.8 Expected contribution for the next one year (Rupees '000') 79,459 11,626 11,568 (23,416) (8,139) 71,098
2010
81,502 14,660 10,067 (22,343) (4,427) 79,459
The Bank provides for gratuity as per the actuary's expected charge for the next one year. Based on actuarial advice, management estimates that the charge in respect of the defined benefit plan for the year ending December 31, 2012 would be Rs. 18.390 million. 35. DEFINED CONTRIBUTION PLAN The Bank has established a provident fund scheme administered by the Board of Trustees for all permanent employees. Equal monthly contributions are made to the fund by both the Bank and the employees at the rate of 10% of basic salary. 36. COMPENSATION OF DIRECTORS AND EXECUTIVES
President / Chief Executive 2011 2010 Directors 2011 2010 Executives 2011 2010
(Rupees '000')
Fees Managerial remuneration Charge for defined benefit plan Contribution to defined contribution plan Rent and house maintenance Utilities Others
16,714 2,924 1,667 5,850 1,671 29,804 58,630
17,419 2,461 1,742 6,097 1,742 1,742 31,203 1
6,792 6,792 5
5,709 5,709 5
456,305 9,711 42,595 159,706 45,630 270,758
787,164 14,142 56,478 218,355 62,387 62,387
984,705 1,200,913 517 703
Number of persons
*2
*Includes interim President and Chief Executive Officer for 15 days in 2011. The Presidents / Chief Executives are provided with free use of Bank maintained cars, travel and medical insurance, security arrangements and reimbursement of household utilities, as per terms of their employment. Directors fees are paid to non executive directors only.
Annual Report 2011
61
37. FAIR VALUE OF FINANCIAL INSTRUMENTS
37.1 On-balance sheet financial instruments 2011 Book value Fair value
(Rupees '000')
2010 Book value Fair value
Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Other assets 7,969,044 1,486,830 14,666,918 49,598,830 60,844,380 2,803,395 137,369,397 Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities 1,738,422 47,382,031 85,488,268 3,994,400 2,365,655 140,968,776 1,738,422 47,382,076 85,488,268 3,914,796 2,365,655 140,889,217 1,335,493 42,361,934 99,169,373 3,996,000 3,582,055 150,444,855 1,335,493 42,359,713 99,169,373 3,889,706 3,582,055 150,336,340 7,969,044 1,486,830 14,669,815 49,046,314 60,844,380 2,803,395 136,819,778 8,836,449 2,951,479 6,429,166 51,789,035 74,566,015 3,449,633 148,021,777 8,836,449 2,951,479 6,428,069 50,824,544 74,566,015 3,449,633 147,056,189
37.2 Off-balance sheet financial instruments Forward purchase of foreign exchange Forward sale of foreign exchange 56,859,837 58,787,111 57,548,407 59,591,144 66,004,625 67,312,030 65,049,598 66,429,843
Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable willing parties in an arms length transaction. Fair values of held-to-maturity securities, sub-ordinated loans and investment in quoted associates have been stated at market values. Fair value of unquoted equity securities have been stated at the lower of cost and Net Assets Value as per the latest available audited financial statements. Except for investment in unquoted subsidiaries, fixed term advances of over one year, staff loans and fixed term deposits of over one year, the fair value of other on balance sheet financial assets and liabilities are not significantly different from their book value as these assets and liabilities are either short term in nature or are frequently re-priced. The fair value of unquoted subsidiaries, fixed term advances, staff loans, fixed term deposits, other assets and other liabilities cannot be calculated with sufficient reliability due to non-availability of relevant active markets for similar assets and liabilities.
62
Annual Report 2011
38. SEGMENT DETAILS WITH RESPECT TO BUSINESS ACTIVITIES The Bank is organised into reportable segments as disclosed in note 6.20.1. These segments are managed by respective segment heads and the results of these segments are regularly reviewed by the Bank's President / Chief Executive. Segment performance is reviewed on the basis of various factors including profit before taxation. Transactions between reportable segments are carried out on an arms length basis. The segment analysis with respect to business activity is as follows:
For the Year ended December 31, 2011
Corporate and Investment Banking Small & Medium Enterprises and Commercial Retail Treasury Head Office / Other *Adjustments
(Rupees '000')
Net Interest Income Non Funded Income Net Interest and non mark-up Income Total expenses including provisions (excluding Impairment) Impairment against Investment Total expenses including provisions Segment Net income / (loss) before tax Segment Return on net assets (ROA) (%) Segment Cost of funds (%)
(605,465) 374,158 (231,307) 799,676 52,703 852,379 (1,083,686) (1.69%) 11.97%
(621,777) 135,492 (486,285) 886,360 886,360 (1,372,645) (3.84%) 6.76%
3,515,414 350,450 3,865,864 5,405,275 5,405,275 (1,539,411) (1.22%) 6.62%
(387,463) 839,833 452,370 173,981 118,721 292,702 159,668 0.19% 13.44%
178,187 452,147 630,334 50,835 223,843 274,678 355,656
N/A N/A
Net Interest Income Non Funded Income Net Interest and non mark-up Income Total expenses including provisions (excluding Impairment) Impairment against Investment Total expenses including provisions Segment Net income / (loss) before tax Segment Return on net assets (ROA) (%) Segment Cost of funds (%)
(198,579) 320,382 121,803 2,738,512 2,738,512 (2,616,709) (3.36%) 11.50%
(215,919) 183,957 (31,962) 5,080,278 5,080,278 (5,112,240) (13.35%) 6.64%
3,771,921 306,493 4,078,414 7,648,615 7,648,615 (3,570,201) (2.80%) 6.24%
(248,521) 673,585 425,064 166,708 115,134 281,842 143,222 0.22% 12.47%
(159,982) 230,935 70,953 1,527,195 9,387 1,536,582 (1,465,629)
N/A N/A
As at December 31, 2011
Segment Assets (Gross) Segment Non Performing Loans Segment Provision (including general provisions) Segment Assets (Net) Segment Liabilities
56,637,592 18,006,713 14,965,673 41,671,919 40,802,879
30,116,978 12,234,822 6,876,818 23,240,160 22,740,530
83,809,168 3,725,523 1,589,256 82,219,912 80,501,374
53,507,148 53,507,148 53,091,254
10,369,353 227,524 195,951 10,173,402
(56,018,911) (56,018,911) (56,018,911)
65,288,984 18,814,492 14,712,848 50,576,136 46,112,224
31,301,155 10,795,340 6,415,309 24,885,846 23,016,713
85,301,088 4,904,273 2,524,598 82,776,490 79,530,605
42,382,391 42,382,391 41,401,559
7,019,972 197,363 125,784 6,894,188 3,791,185
(43,165,012) (43,165,012) (43,165,012)
* The respective segment assets and liabilities incorporate intersegment lending and borrowing, with appropriate transfer pricing. The adjustments column eliminates intersegment lending and borrowing.
Annual Report 2011
63
64
Holding company 2011
(Rupees '000')
39.
RELATED PARTY TRANSACTIONS
The Bank has related party transactions with its holding company (refer note 1), subsidiaries (refer note 10.12), associated undertakings (refer note 10.11), employee benefit plans (refer note 34) and its key management personnel.
Transactions with related parties are executed on the same terms as those prevailing at the time for comparable transactions with unrelated parties.
The detail of transactions with related parties is given below:

Subsidiaries 2011 2010 2011 2010 2011 2010 2011 Associates Key Management Personnel Other related parties 2010
2010
39.1

58,350 12 1,042 (16,751)
Balances outstanding as at the year end

66,305 381 (8,336)
57,633 4,188,863 (4,230,458) 16,038 57,633 543,226 29,676,785 (29,921,260) 58,350
Advances At the beginning of the year Addition during the year Repaid during the year
1,080,927 503,372 (1,526,666) 298,751 1,573,832 1,573,832

543,226
1,135,995 15,952,374 (16,344,171) (200,972) 119,254 23,564 261,479 (243,030) 42,013 1,899,518 (82,500) (243,186)
1,573,832
102,142 58,669 (41,557)
172,906 46,068 (116,832)

102,142 7,295 287,847 (271,578) 23,564
29,797 85,381 (90,181) 24,997
53,170 (23,373)
29,797
300,457 257,861 7,539,595 5,052,179 4,099 (7,749,951) (5,009,583)
At the end of the year
Deposits At the beginning of the year Deposits during the year Exchange difference Withdrawal during the year NAFA Funds ceased to be associates
At the end of the year 4,584,741 4,584,741 4,584,741 4,584,741
42,653
94,200 151,815 136,559 (138,669) 149,705
300,457 184,146 7,286 (39,617) 151,815
Investment in shares / mutual funds - cost At the beginning of the year Investments made during the year Investments sold / liquidated during the year NAFA Funds ceased to be associates
Investment in Term Finance Certificates - cost At the end of the year
626 117
1,102,224
978,687
Receivables At the end of the year
928
3,795
Insurance claim receivable At the end of the year
50,000
Payables At the end of the year
738
1,529
184
Annual Report 2011

Brokerage payable At the end of the year
49
104
Annual Report 2011

Holding company 2011
(Rupees '000')
Subsidiaries 2011 2010 2011 2010 2011 2010 2011
Associates
Key Management Personnel Other related parties 2010
2010
Payable to Directors At the end of the year
174
Insurance premium payable At the end of the year
4,691
4,691
Sub-ordinated loans At the end of the year
49,950
Advance against proposed rights issue
6,352,360
39.2 Income / Expense for the year

13,344 65,634
Mark-up / return / interest earned on advances

126,254
102,446
4,981 643
6,101 754
2,296
69,118
2,240
48,049
Mark-up / return / interest expensed on deposits
Mark-up / return / interest earned on Term Finance Certificates
270,000 1,529
168,420
26,713
171,638
3,657
145,236
91,251 3,675
Dividend income from Shares / Mutual Funds

2,834
Brokerage expense 3,418

139,524
1,384 6,792 127
3,131 5,709
Directors remuneration
Directors travelling expense
184

83,894 115,909
Remuneration to key management personnel
Contribution to Provident Fund
Mark-up expense on sub-ordinated loans
3,703
6,862
Rent expense
65
40. CAPITAL-ASSESSMENT AND ADEQUACY BASEL II SPECIFIC
40.1 Scope of Applications Capital Adequacy Ratio (CAR) has been calculated in accordance with the guidelines given by the SBP through BSD Circular No. 8 dated June 27, 2006. The Bank has adopted the Standardized Approach for Credit and Market Risk and Basic Indicator Approach for Operational Risk. The current requirement for CAR is 10% as per BSD Circular No. 07 dated April 15, 2009. 40.2 Capital Structure The Bank's regulatory capital base comprises of: (a) Tier 1 capital which includes share capital, reserves and accuulated losses/unappropriated profit (b) Tier 2 capital which consists of subordinated debt (subject to 50% of eligibe Tier 1 capital), revaluation reserves (subject to 45% of balance in revaluation reserve) and general provision for loan losses (subject to 1.25% of Risk Weighted Asset) The issued, subscribed and paid-up capital of the Bank was Rs. 103,028.512 million as at December 31, 2011, comprising of 10,302,851,164 shares of Rs. 10 each. The subordinated debt amounting to Rs. 3,994.200 million represents unsecured TFCs of the Bank. The amount raised through the issue contributed towards the Bank's Tier II capital for Minimum Capital Requirement as per the guidelines of SBP. Note Details of the Bank's regulatory capital are as under: Tier I Capital Fully paid-up capital Share premium Advance against proposed rights issue Statutory and general reserves Accumulated loss Less: Goodwill and intangibles Deficit on account of revaluation of investments held as available-for-sale Other deductions (representing 50% of investment in subsidiary and other significant associates) Total Tier I Capital 40.2.1 2,054,426 40.2.1 889,613 10,640,031 2,419,147 905,416 10,337,483 103,028,512 (45,769,623) 218,276 (43,893,095) 13,584,070 40,437,271 8,246,618 6,352,360 218,276 (41,592,479) 13,662,046 2011 (Rupees '000') 2010
66
Annual Report 2011
Note 2011 (Rupees '000') Tier II Capital Sub-ordinated loans (up to 50% of total Tier I Capital) General Provision for loan losses (subject to 1.25% of Total Risk Weighted Assets) Revaluaton Reserave (up to 45%) Less: Other deductions (represents 50% of investment in subsidiary and other significant associates) Total Tier II Capital Total Regulatory Capital Base (a) 40.2.1 889,613 2,629,641 13,269,672 905,416 3,992,983 14,330,466 3,195,520 282,139 41,595 3,946,000 952,076 323 2010
40.2.1 The SBP has allowed the Bank to break its investment in PICIC Asset Management Company Limited (PICIC AMC) into tangible and other components for the purpose of calculating CAR on unconsolidated basis. The tangible assets of PICIC AMC may be treated as a single asset in the banking book and assigned 100% risk weight. The difference between cost of PICIC AMC and tangible portion would be required to be deducted from Tier I capital. This relaxation is granted from December 2010 up to and including December 2011. 40.3 Capital Adequacy The purpose of capital management at the Bank is to ensure efficient utilization of capital in relation to business requirements, growth, risk appetite, shareholders' returns and expectations. The Bank manages its capital structure and makes adjustments to it in the light of changes in economic conditions, regulatory requirements and the risk profile of its activities. In order to maintain or adjust the capital structure, the Bank may issue capital / Tier II securities. The Bank's capital adequacy ratio as at December 31, 2011 was 14.11% compared to the minimum regulatory requirement of 10%. The Bank ensures adherence to SBP's requirements by monitoring its capital adequacy on a regular basis. Banking operations are categorised as either Trading book or Banking book, and Risk-Weighted Assets are determined according to SBP requirements that seek to reflect the varying levels of risk attached to bank's On and Off-balance sheet exposures. Collateral if any, is used as an outflow adjustment. Risk weights notified, are applied to Net Adjusted Exposure. Cash and near Cash collateral includes Government of Pakistan Securities , Shares listed on the stock exchanges, Cash and Cash equivalents (deposits / margins, lien on deposits). The bank has complied with all regulatory capital requirements as at the reporting date.
Annual Report 2011
67
The capital requirements for the Bank as per the major risk categories is indicated below: Capital Requirements 2011 2010 Risk Weighted Assets 2011 2010
(Rupees '000') Credit Risk Corporate Sovereign Retail Banks Equity investments Public sector entities Past due loans Claims against residential mortgage Investments in premises, plant and equipment and all other fixed assets Other assets Off balance sheet market related exposures 2,951,635 3,252 904,837 463,924 155,477 23,069 1,140,635 58,914 269,380 1,561,220 82,312 7,614,655 Market Risk Interest Rate Risk Equity Position Risk Foreign Exchange Risk 666,044 29,151 4,908 700,103 Operational Risk TOTAL (b) 1,090,490 9,405,248 3,123,936 15,981 1,334,830 297,586 124,227 63,230 1,120,452 62,833 271,897 1,361,644 56,528 7,833,144 372,617 239,567 118,058 730,242 1,168,224 9,731,610 29,516,351 32,522 9,048,365 4,639,242 1,554,771 230,685 11,406,353 589,140 2,693,795 15,612,203 823,124 76,146,551 6,660,436 291,507 49,081 7,001,024 10,904,895 94,052,470 2011 31,239,360 159,811 13,348,303 2,975,859 1,242,268 632,296 11,204,520 628,330 2,718,974 13,616,442 565,284 78,331,447 3,726,166 2,395,668 1,180,579 7,302,413 11,682,242 97,316,102 2010
(Rupees '000') Capital Adequacy Ratio Total eligible regulatory capital held Total Risk Weighted Assets Capital Adequacy Ratio (a) / (b) 13,269,672 94,052,470 14.11% 14,330,466 97,316,102 14.73%
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Annual Report 2011
40.4 Types of Exposures and ECAIs used The Bank uses external ratings from local and foreign rating agencies. The Bank has obtained ratings from the websites of External Credit Assessment Institutions (ECAIs) and followed the SBP rating grade for mapping.
Exposures Corporate Sovereign Retail Banks
JCR-VIS
PACRA
Fitch
Moodys
Standard & Poor
40.5 Credit exposure subject to Standardized Approach

2011 (Rupees '000') Exposure Rating Category Corporate Corporate Corporate Corporate Corporate Retail Banks - Over 3 Months - Over 3 Months - Over 3 Months - Over 3 Months - Maturity Upto and under 3 Months in FCY - Maturity Upto and under 3 Months in FCY - Maturity Upto and under 3 Months in FCY - Maturity Upto and under 3 Months in FCY - Maturity Upto and under 3 Months in PKR Public Sector Entities Sovereign Others Total 1 2,3 4,5 Unrated 1,2,3 4,5 6 Unrated 1 1 Unrated 1,126,052 5,731,756 110,805 764,726 2,584,486 623,303 14,325,095 464,537 21,833,880 34,169,124 131,666,689 746,128 10,392,640 3,921 6,577,909 22,827,010 1,126,052 4,985,628 110,805 764,726 2,584,486 623,303 3,932,455 460,616 15,255,971 34,169,124 108,839,679 1 2 3,4 5,6 Unrated Amount Outstanding 3,928,061 855,131 57,524 564,509 29,443,393 15,084,307 Deduction CRM 84,168 5,846 1,996,578 3,019,820 Net Amount 3,928,061 770,963 51,678 564,509 27,446,815 12,064,487
Annual Report 2011
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41. RISK MANAGEMENT While the overall responsibility of risk management rests with the Board of Directors, the Banks senior management has implemented a risk management framework with well defined policies and procedures, duly approved by the Board, for mitigating, monitoring and controlling risks. The Board of Directors of the Bank has approved the risk management strategy of the Bank and entrusted the monitoring to the Boards Risk Management Committee (BRMC). The Integrated Risk Management Committee (IRMC) is responsible for reviewing and highlighting key risk issues that require senior managements attention. IRMC comprises of members from business units and the risk functions. An enterprise level assessment of risk composition is made at this platform and where necessary, recommendations are made to improve upon processes and procedures to further strengthen the risk framework. Risk management heads for the business segments report to the Chief Risk Officer (CRO). The risk management heads are responsible for ensuring the implementation of the Banks risk framework in their respective domains in line with the business model of the Bank and also in compliance with SBP guidelines. The Bank also conducts stress testing analysis across portfolios, by anticipating changes and applying shocks of different intensity values, thereby evaluating their effects on the value of the portfolios. 41.1 Credit Risk Credit risk is the risk of failure by a client or counterparty to meet its contractual obligations. It is inherent in loans, commitments to lend and contingent liabilities, such as letters of credit, repurchase agreements (repos and reverse repos) and securities borrowing and lending transactions. The objective of credit risk management by the Bank is to ensure that the risk of default by a client or counterparty is reduced to a minimum, keeping in view the risk management policies of the Bank. The Bank has established an appropriate credit risk environment which is operating under a sound credit-granting process, maintaining an appropriate credit administration, measurement and monitoring process and ensuring adequate controls. There is a proper credit delegation matrix for review and approving credit applications. Businesses have no credit approving authority. All credit approvals are accorded by the Credit Officers/ Senior Credit Officers in the Risk Management Group. The concept of three initial system is very much in existence in NIB. Based upon regional considerations and availability of Credit Talent, any initiating unit has to have formal recommendation by the Relationship Manager, his/ her Team Leader and Regional Head/ Corporate Banking Head/ Group Head. The essence here is that the credit proposal must not be left to the sole judgement of one person rather, the application of minds must be diverse and independent of each other. Following are the basic guiding principles of credit risk management that are embedded in the Bank and across business segments: Clearly defined risk management policies and procedures covering risk identification, acceptance, measurement, monitoring, reporting and control. A well constituted organizational structure clearly defining roles and responsibilities of individuals involved in taking as well as managing risk.
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Annual Report 2011
An effective management information system that ensures flow of information from the operational level to top management and a system to address any exceptions observed. An effective mechanism to ensure an ongoing review of systems, policies and procedures for risk management and procedures to adopt changes. Review of portfolios by BRMC on a quarterly basis and by IRMC on a monthly basis to evaluate the health of the portfolio.
41.1.1
Segmental Information
2011 Advances (Gross) (Rupees '000')
Agriculture, Forestry, Hunting and Fishing Automobile and Transportation Equipment Cement, Glass and Ceramics Chemicals and Pharmaceuticals Construction Electronics and Electrical Appliances Engineering Exports / Imports Financial Food and Beverages Footwear and Leather Garments Individuals Insurance Mining and Quarrying Non Profit Organizations / Trusts Oil and Gas Paper and Printing Power, Gas, Water and Sanitary Services Sugar Textile Transport, Storage and Communication Wholesale and Retail Trade Others 1,412,649 1,071,826 3,681,480 1,549,328 747,419 1,423,754 803,083 2,601,689 339,481 9,281,750 969,835 5,225,611 201,117 150,109 356,729 1,667,620 3,317,982 3,170,753 1,751,338 29,112,151 2,299,449 6,928,934 6,407,991 84,472,078
41.1.1.1 Segments by class of business
Deposits
Contingencies and Commitments Percent

0.36 0.44 1.00 0.79 0.13 0.64 5.34 81.48 0.77 0.01 0.25 0.00 0.07 0.01 0.00 0.41 0.47 0.21 0.02 4.49 1.00 0.91 1.20 100
Percent (Rupees '000')

1.67 1.27 4.36 1.83 0.88 1.69 0.95 3.08 0.40 10.99 1.15 6.19 0.24 0.18 0.42 1.97 3.93 3.75 2.07 34.47 2.72 8.20 7.59 100 522,737 303,484 314,589 1,132,720 1,356,196 378,021 358,519 1,242,681 1,235,198 905,194 161,793 50,230,839 181,272 512,451 2,970,314 4,897,690 398,860 2,923,427 2,885,736 15,968 1,432,811 2,894,337 3,563,664 4,670,131 85,488,268

0.61 0.36 0.37 1.33 1.59 0.44 0.42 1.45 1.44 1.06 0.19 58.74 0.21 0.60 3.47 5.73 0.47 3.42 3.38 0.02 1.68 3.39 4.17 5.46 100 509,041 623,896 1,422,465 1,133,506 183,186 907,756 7,632,261 116,443,027 1,095,774 16,037 350,774 200 97,239 20,495 3,038 591,285 677,548 294,068 22,239 6,420,856 1,436,027 1,300,123 1,709,111 142,889,952
Annual Report 2011
71
Agriculture, Forestry, Hunting and Fishing Automobile and Transportation Equipment Cement, Glass and Ceramics Chemicals and Pharmaceuticals Construction Electronics and Electrical Appliances Engineering Exports / Imports Financial Food and Beverages Footwear and Leather Garments Individuals Insurance Mining and Quarrying Non Profit Organizations / Trusts Oil and Gas Paper and Printing Power, Gas, Water and Sanitary Services Sugar Textile Transport, Storage and Communication Wholesale and Retail Trade Others 2,127,690 1,221,195 3,575,306 2,070,425 905,621 1,925,757 593,436 2,639,680 520,367 9,819,615 1,055,048 7,863,276 244,304 150,659 2,396,384 1,644,292 2,606,707 4,549,830 1,828,795 30,938,690 2,480,832 9,519,320 7,667,325 98,344,554
Deposits

_ 0.07 0.44 1.00 0.36 0.18 0.80 0.25 85.79 0.71 0.02 0.23 _ 0.05 0.00 1.58 0.21 0.54 0.34 0.00 4.95 0.65 0.87 0.96 100

2.16 1.24 3.64 2.11 0.92 1.96 0.60 2.68 0.53 9.98 1.07 8.00 0.25 0.15 2.44 1.67 2.65 4.63 1.86 31.46 2.52 9.68 7.80 100.00 431,118 935,411 60,977 4,099,027 1,173,911 377,179 457,706 667,950 6,397,046 659,112 115,638 47,530,178 259,553 1,928,351 2,872,553 3,048,037 423,663 4,255,100 2,988,233 35,553 783,430 8,921,680 2,530,102 8,217,865 99,169,373

0.43 0.94 0.06 4.13 1.18 0.38 0.46 0.67 6.45 0.66 0.12 47.95 0.26 1.94 2.90 3.07 0.43 4.29 3.01 0.04 0.79 9.00 2.55 8.29 100.00 _ 108,042 675,470 1,531,219 555,261 273,257 1,215,419 378,194 130,811,534 1,081,074 34,616 344,781 _ 74,453 1,875 2,416,949 320,503 828,234 521,661 2,049 7,553,526 992,311 1,323,278 1,468,218 152,511,924
41.1.1.2 Segment by sector
2011 Advances (Gross) (Rupees '000') Deposits Contingencies and Commitments Percent
0.00 100.00 100

7.79 92.21 100 9,414,316 76,073,952 85,488,268

11.01 88.99 100 2,911 142,887,041 142,889,952
Public / Government Private
6,578,083 77,893,995 84,472,078
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Annual Report 2011
Public / Government Private 10,904,387 87,440,167 98,344,554
Deposits

2.02 97.98 100

11.09 88.91 100.00 12,069,277 87,100,096 99,169,373

12.17 87.83 100.00 3,076,217 149,435,707 152,511,924
2011 Classified Specific Advances Provisions Held
Classified Advances
2010 Specific Provisions Held
(Rupees '000')
41.1.1.3 Details of non-performing advances and specific provisions by class of business segment Agriculture, Forestry, Hunting and Fishing Automobile and Transportation Equipment Cement, Glass and Ceramics Chemicals and Pharmaceuticals Construction Electronics and Electrical Appliances Engineering Financial Food and Beverages Footwear and Leather Garments Individuals Mining and Quarrying Oil and Gas Paper and Printing Power, Gas, Water and Sanitary Services Sugar Textile Transport, Storage and Communication Wholesale and Retail Trade Others 22,993 15,113 588,843 515,344 1,277,320 1,081,681 519,527 332,600 482,431 103,144 703,056 432,233 424,258 233,381 129,982 96,802 1,217,777 719,393 418,458 305,942 566,960 313,897 33,602 2,117 327,474 299,634 561,452 387,008 664,656 459,239 1,907,961 801,684 772,799 626,387 14,675,438 11,761,058 888,606 665,971 3,887,070 1,824,453 4,123,919 2,368,478 34,194,582 23,345,559 54,049 466,555 1,339,892 314,336 426,022 515,794 270,381 182,079 1,060,392 340,708 1,778,291 48,493 359,101 591,339 646,083 2,131,558 1,272,914 11,212,276 1,070,183 6,041,388 4,589,634 34,711,468 15,513 436,401 938,969 198,010 133,472 307,383 121,485 73,066 756,651 268,207 826,009 34,819 328,832 358,062 371,953 1,096,966 816,713 8,620,131 807,245 3,962,528 2,354,048 22,826,463
Annual Report 2011
73
2011 Classified Specific Advances Provisions Held 2010 Specific Provisions Held
Classified Advances
(Rupees '000')
41.1.1.4 Details of non-performing advances and specific provisions by sector Public / Government Private 34,711,468 34,711,468 22,826,463 22,826,463 34,194,582 23,345,559 34,194,582 23,345,559
2011 Profit / (Loss) before taxation 41.1.1.5 Geographical Segment Analysis Pakistan (3,480,418) 154,793,630 2010 Pakistan (12,621,557) 164,350,039 13,662,765 152,511,924 13,676,504 142,889,952 Total assets employed Net assets employed Contingencies and commitments
(Rupees '000')
41.2
Market Risk Market risk is primarily composed of price risk and arises out of treasury trading and investment activities. It is the risk that the value of on and off balance sheet positions of the Bank will be adversely affected by movements in market rates or prices. The Bank recognizes that it may be exposed to market risk in a variety of ways. Market risk exposure may be explicit in the portfolio of equities and foreign currencies that are actively traded. Conversely, it may be implicit, such as interest rate risk due to mismatch of loans and deposits. Market risk may also arise from activities categorized as off balance sheet items.
41.2.1
Foreign Exchange Risk Foreign exchange risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. The core objective of foreign exchange risk management is to ensure that the exposure of the Bank remains within desired levels of risk appetite. Furthermore, the Bank monitors Value at Risk (VaR) and Price Value Basis Point (PVBP) for the foreign exchange portfolio in order to estimate any potential losses due to changes in price. The Bank also monitors maturity mismatch gaps to identify any potential risks. The Bank has implemented global / regulatory best practices in order to manage the inherent risk of product and market, such as credit limits, monitoring of foreign exchange exposure limits, review of mark to market portfolio etc.
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Annual Report 2011
2011 Off Balance sheet items Net foreign currency exposure
Assets
Liabilities
(Rupees '000') Pakistan Rupee United States Dollar Great Britain Pound Euro Japanese Yen Swiss Franc Others 147,245,285 6,944,197 153,964 417,779 12,560 1,865 17,980 154,793,630 135,908,865 3,820,292 833,552 543,650 22 787 9,958 141,117,126 2010 Off Balance sheet items Net foreign currency exposure 1,927,274 (2,750,296) 679,752 143,270 13,263,694 373,609 164 17,399 12,538 1,078 8,022 13,676,504
Assets
Liabilities
(Rupees '000') Pakistan Rupee United States Dollar Great Britain Pound Euro Japanese Yen Swiss Franc Others 155,385,408 8,032,243 221,540 671,042 18,618 5,569 15,619 164,350,039 144,575,893 4,234,598 1,018,965 848,178 12 752 8,876 150,687,274 1,307,404 (2,322,995) 843,190 172,401 12,116,919 1,474,650 45,765 (4,735) 18,606 4,817 6,743 13,662,765
41.2.2
Equity price risk and Fixed Income rate risk The Bank has a set of approved notional & dealer limits for managing risk across the trading & banking book. Furthermore bank has also established sensitivity base limit (DVO1) for monitoring treasury portfolio. In order to manage the market risk in the trading book, the Bank periodically applies a VaR methodology to assess the market risk positions held. Currently the Bank is using variance covariance model for calculating VaR across both the equity & fixed income portfolios. Equity Price Risk is the risk to earnings or capital that results from adverse changes in the value of equity related portfolios of the Bank. Price risk associated with equities could be systemic or idiosyncratic. The Bank is also using Market Risk tools such as Alpha, Beta and Sharpe ratio for risk measurement and assessment. Fixed income securities are subject to the risk of price volatility due to interest rate movements. Fixed rate debt securities with longer maturities tend to be more sensitive to interest rate movements than those with shorter maturities. The Bank is using Market Risk tools such as PVBP, Duration, Parallel shift and Non Parallel shift for risk measurement and assessment.
Annual Report 2011
75
76
2011 Exposed to Yield / Interest rate risk Effective Yield / Interest rate Total (Rupees '000') Upto 1 Month Over 1 to 3 Months Over 3 to 6 Months Over 6 Months to 1 Year Over 1 to 2 Years Over 2 to 3 Years Over 3 to 5 Years Over 5 to 10 Years Non-interest Over bearing financial 10 Years instruments
41.2.3 Mismatch of Interest Rate Sensitive Assets and Liabilities
On-balance sheet financial instruments
Assets 7,969,044 1,486,830 14,666,918 49,598,830 60,844,380 2,803,395 137,369,397 25,867,205 35,233,989 7,999,703 28,882,961 8,585,373 5,417,588 98,856 4,860,503 9,814,229 35,122,324 5,099,252 1,405,968 2,798,065 2,419,698 2,436,187 752,974 12,809 2,900,451 27,476,993 5,787,308 2,997,890 2,424,316 14,666,918 633,084 1,001,623 1,073,867 2,075,490 674,790 674,790 7,969,044 853,746 6,244,466 2,704,539 17,771,795 0.03% 12.99% 10.82% 11.73% 14.60%
Cash and balances with treasury banks 0.00%
Balances with other banks
Lendings to financial institutions
Investments
Advances
Other assets
Liabilities 11.58% 7.54% 14.63% 140,968,776 (3,599,379) (24,278,877) 17,275,883 13,676,504 (8,836,188) 173,195 22,044,904 50,146,082 44,070,177 7,826,508 6,838,057 2,365,655 3,994,400 3,994,400 242,702 8,342,671 85,488,268 12,383,300 35,355,725 4,695,641 6,838,057 189,706 47,382,031 37,762,782 4,720,052 3,130,867 52,996 1,738,422 480,371 27,486 507,857 4,909,731 822,527 14,295 836,822 4,023,681 412,436 115 412,551 1,662,939 1,738,422 25,983,943 2,365,655 30,088,020 674,790 (12,316,225)
Bills payable
Borrowings
Deposits and other accounts
Sub-ordinated loans
Other liabilities
On-balance sheet gap
Non Financial Net Assets
Total Net Assets
Off-balance sheet financial instruments 56,859,837 58,787,111 (1,927,274) (28,562,870) (4,283,993) 7,820,844 (1,015,344) 19,683,105 15,321,080 15,399,112 23,141,924 17,755,251 23,782,926 (6,027,675) (5,854,480) (35,432,694) 563,550 563,550 22,608,454 (12,824,240) 8,342,671 (4,481,569) 4,909,731 428,162 4,023,681 4,451,843 1,662,939 6,114,782 674,790 6,789,572 (12,316,225) (5,526,653)
Foreign exchange contracts - purchase
Foreign exchange contracts - sale
Off-balance sheet gap
Total Yield / Interest Rate Risk Sensitivity Gap
Annual Report 2011
Cumulative Yield / Interest Rate Risk Sensitivity Gap
(28,562,870) (29,578,214)
2010 Exposed to Yield / Interest rate risk Effective Yield / Interest rate Total (Rupees '000') Upto 1 Month Over 1 to 3 Months Over 3 to 6 Months Over 6 Months to 1 Year Over 1 to 2 Years Over 2 to 3 Years Over 3 to 5 Years Over 5 to 10 Years Non-interest Over bearing financial 10 Years instruments
Annual Report 2011

8,836,449 2,951,479 6,429,166 51,789,035 74,566,015 3,449,633 148,021,777 20,446,057 74,666,835 10,766,099 7,923,377 3,765,767 5,444,469 _ 10,893,113 49,442,712 4,327,109 1,696,181 2,876,093 2,209,288 3,603,463 1,261,164 24,445,215 6,438,990 6,227,196 889,674 3,235,181 1,704,227 1,899,236 5,650,258 778,908 2,641,522 289,342 708,186 997,528 306,563 514,097 820,660 8,836,449 309,957 6,991,483 3,449,633 19,587,522 0.00% 12.11% 10.10% 12.31% _ 11.46% 7.58% 13.72% 150,444,855 (2,423,078) (19,055,015) 46,318,293 16,085,843 13,662,765 (30,401,505) 39,501,072 28,348,542 41,167,604 9,373,507 (1,450,130) 3,582,055 3,996,000 3,996,000 99,169,373 10,937,759 16,839,285 36,699,048 9,172,595 305,670 682,464 3,083,303 42,361,934 28,563,313 7,513,257 4,468,556 200,912 376,794 1,335,493 329,268 215,272 544,540 4,899,929 656,699 18,589 675,288 2,928,175 253,135 134 253,269 744,259 820,660 1,335,493 24,981,021 3,582,055 29,898,569 (10,311,047) 66,004,625 67,312,030 (1,307,405) (4,707,834) 28,820,121 24,938,063 (2,436,148) 24,112,287 22,501,915 17,536,494 13,553,846 3,982,648 (26,418,857) (6,299,561) 1,853,929 1,853,929 403,799 (5,895,762) 3,083,303 (2,812,459) 4,899,929 2,087,470 2,928,175 5,015,645 744,259 5,759,904 820,660 6,580,564 (10,311,047) (3,730,483) (23,762,849) 43,882,145 (23,762,849) 20,119,296
Assets
Cash and balances with treasury banks 0.00%
Investments
Advances
Other assets
Liabilities
Bills payable
Borrowings
Sub-ordinated loans
Other liabilities
Total Net Assets
Off-balance sheet financial instruments
77
78
2011 Total Upto 1 Month Over 1 to 3 Months Over 3 to 6 Months Over 6 Over 1 Months to 1 to 2 Year Years (Rupees '000') Over 2 to 3 Years Over 3 to 5 Years Over 5 to 10 Years Over 10 Years
41.3
Liquidity Risk
Liquidity risk exposure is the risk caused, among others, by the inability of the Bank to settle its liabilities on their due dates.
The Bank's objective of liquidity management is to ensure that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses.
The liquidity risk policy is formulated keeping in view SBP's guidelines on risk management and international best practices. The Bank maintains its liquidity by keeping a level of liquid assets that is considered sufficient to settle its obligations when due.
The Bank manages its liquidity risk through
Controlling the cash flow mismatch between on- and off-balance sheet assets and liabilities;
Maintaining stable and diversified sources of funding;
Ensuring the Bank has the right asset portfolio mix and sufficient liquid assets on hand in relation to its daily cash flows.
The Bank carries out careful monitoring and control of the daily liquidity position, and regular liquidity stress testing under a variety of scenarios. Scenarios encompass both normal and stressed market conditions, including general market crises and the possibility that access to markets could be impacted by a stress event affecting some part of the Bank's business. Exposure to liquidity risk is also monitored through regular review of liquidity risk limits and escalation of any liquidity risk limit excesses to senior management.
41.3.1 Maturities of Assets and Liabilities - Based on contractual maturity of the Assets and Liabilities of the Bank
Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Operating fixed assets Intangible assets Deferred tax assets Other assets 7,969,044 1,486,830 14,666,918 49,598,830 60,844,380 2,693,795 2,054,426 11,017,000 4,462,407 154,793,630 1,738,422 47,382,031 85,488,268 3,994,400 2,514,005 141,117,126 13,676,504 103,028,512 218,276 (45,769,623) (43,893,095) 13,584,070 92,434 13,676,504 (45,460,632) (1,973,764) (1,834,426) 1,738,422 37,762,783 64,942,068 1,065,981 105,509,254 4,720,052 8,780,900 800 925,262 14,427,014 3,130,866 4,695,641 174,293 8,000,800 6,838,057 800 253,873 7,092,730 23,718,362 60,048,622 12,453,250 6,166,374 30,811,092 10,849,084 52,996 189,706 666,136 14,947 923,785 9,925,299 7,969,044 1,486,830 14,666,918 230,353 35,563,691 20,969 30,604 (57,921) 138,134 693,586 9,372,863 197,700 61,188 (64,576) 2,192,489 852,374 5,099,252 59,760 91,782 (16,418) 79,624 27,585,819 1,405,967 104,462 163,085 242,370 1,309,389 5,974,198 2,798,065 170,630 325,419 915,391 665,381 3,080,127 2,419,698 140,201 313,781 1,526,863 28,011 7,508,681 480,371 27,486 1,330,672 2,370 1,840,899 5,667,782
3,399,644 2,436,187 182,139 575,072 3,552,319 48,555 10,193,916 822,527 14,295 1,995,992 2,832,814 7,361,102
2,315,463 1,073,867 262,771 493,495 4,918,972 824 9,065,392 412,436 115 77,279 489,830 8,575,562
5,467,266 674,790 1,555,163 7,697,219 7,697,219
Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities
Net assets
Share capital Reserves Discount on issue of shares Accumulated Loss Shareholders equity Surplus on revaluation of assets - net
Annual Report 2011
The above maturity profile has been prepared in accordance with International Financial Reporting Standard 7, Financial Instruments: Disclosures, based on contractual maturities. Consequently, all demand assets and liabilities such as running finance, current accounts and saving accounts are shown as having a maturity upto one month. However, based on historical behaviour, management is of the opinion that the possibility of these inflows / outflows actually occuring entirely within one month is remote, as these flows normally occur over a period of one month to three years.
Annual Report 2011

Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Operating fixed assets Intangible assets Deferred tax assets Other assets 8,836,449 2,951,479 6,429,166 51,789,035 74,566,015 2,718,975 2,419,148 9,480,983 5,158,789 164,350,039 1,335,493 42,361,934 99,169,373 3,996,000 3,824,474 150,687,274 13,662,765 40,437,271 8,464,894 (41,592,479) 7,309,686 6,352,360 13,662,046 719 13,662,765 (35,483,562) 12,202,926 (955,185) (429,252) 100,782,603 25,881,528 7,796,675 9,953,946 712,728 5,686,025 1,335,493 28,563,313 69,691,133 1,192,664 7,513,257 16,839,285 800 1,528,186 4,468,556 2,926,695 401,424 200,912 9,172,595 800 579,639 376,794 305,670 1,600 28,664 65,299,041 38,084,454 6,841,490 9,524,694 6,398,753 9,015,043 329,268 215,272 666,200 15,412 1,226,152 7,788,891 11,618,295 656,699 18,589 2,661,300 2,370 3,338,958 8,279,337 8,836,449 2,951,479 5,650,258 1,261,163 46,084,526 22,924 30,818 42,219 419,205 778,908 25,167,345 8,575,231 96,010 61,634 84,432 3,320,894 1,539,302 4,829,904 72,175 92,291 126,648 181,170 6,362,527 2,580,891 122,037 183,606 253,806 21,827 1,122,503 4,034,919 197,288 345,735 374,940 323,368 4,309,570 3,435,273 147,295 324,494 501,292 297,119 4,368,873 3,346,101 207,813 600,033 2,512,240 583,235
1,642,224 1,016,741 264,604 780,537 6,188,468 11,971 9,904,545 253,135 134 665,300 76,115 994,684 8,909,861
6,015,528 662,429 1,588,829 _ (603,062) 7,663,724 7,663,724
Net assets
Share capital Reserves Accumulated Loss Shareholders equity Advance against proposed rights issue
Surplus on revaluation of assets - net
The above maturity profile has been prepared in accordance with International Financial Reporting Standard 7, Financial Instruments: Disclosures, based on contractual maturities. Consequently, all demand assets and liabilities such as running finance, current accounts and saving accounts are shown as having a maturity upto one month. However, based on historical behaviour, management is of the opinion that the possibility of these inflows / outflows actually occuring entirely within one month is remote, as these flows normally occur over a period of one month to three years.
79
80
41.3.2 Maturities of Assets and Liabilities - Based on historical pattern of the Assets and Liabilities of the Bank
Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Operating fixed assets Intangible assets Deferred tax assets Other assets 7,969,044 1,486,830 14,666,918 49,598,830 60,844,380 2,693,795 2,054,426 11,017,000 4,462,407 154,793,630 1,738,422 47,382,031 85,488,268 3,994,400 2,514,005 141,117,126 13,676,504 103,028,512 218,276 (45,769,623) (43,893,095) 13,584,070 92,434 13,676,504 (26,527,737) (3,708,222) (13,112,013) 41,639,309 5,164,776 1,738,422 37,762,783 22,346,311 1,065,981 62,913,497 4,720,052 11,059,569 800 925,262 16,705,683 3,130,866 16,407,362 174,293 19,712,521 11,601,627 800 253,873 11,856,300 52,996 4,950,229 666,136 14,947 5,684,308 36,385,760 12,997,461 6,600,508 53,495,609 10,849,084 7,508,681 480,371 4,791,056 1,330,672 2,370 6,604,469 904,212 10,193,916 822,527 4,782,219 1,995,992 7,600,738 2,593,178 7,969,044 1,486,830 14,666,918 230,353 11,900,829 20,969 30,604 (57,921) 138,134 693,586 9,917,074 197,700 61,188 (64,576) 2,192,489 852,374 5,533,386 59,760 91,782 (16,418) 79,624 27,585,819 24,090,484 104,462 163,085 242,370 1,309,389 5,974,198 2,798,065 170,630 325,419 915,391 665,381 3,080,127 2,419,698 140,201 313,781 1,526,863 28,011 3,399,644 2,436,187 182,139 575,072 3,552,319 48,555
2,315,463 1,073,867 262,771 493,495 4,918,972 824 9,065,392 412,436 4,772,392 77,279 5,262,107 3,803,285
5,467,266 674,790 1,555,163 7,697,219 4,777,503 4,777,503 2,919,716
Net assets
Share capital Reserves Discount on issue of shares Accumulated Loss Shareholders equity
The above maturity profile has been prepared in accordance with the historical pattern of contractual maturities.
Annual Report 2011
Annual Report 2011

Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Operating fixed assets Intangible assets Deferred tax assets Other assets 8,836,449 2,951,479 6,429,166 51,789,035 74,566,015 2,718,975 2,419,148 9,480,983 5,158,789 164,350,039 1,335,493 42,361,934 99,169,373 3,996,000 3,824,474 150,687,274 13,662,765 40,437,271 8,464,894 (41,592,479) 7,309,686 6,352,360 13,662,046 719 13,662,765 (32,034,060) 10,162,073 7,712,833 14,614,935 57,166,858 28,227,484 19,059,227 14,840,329 5,511,428 887,325 1,335,493 28,563,313 26,075,388 1,192,664 7,513,257 19,185,241 800 1,528,186 4,468,556 14,189,247 401,424 200,912 14,058,978 800 579,639 376,794 5,104,370 1,600 28,664 25,132,798 38,389,557 26,772,060 29,455,264 6,398,753 9,015,043 329,268 5,101,656 666,200 15,412 6,112,536 2,902,507 11,618,295 656,699 5,030,233 2,661,300 2,370 8,350,602 3,267,693 8,836,449 2,951,479 5,650,258 1,261,163 5,918,283 22,924 30,818 42,219 419,205 778,908 25,167,345 8,880,334 96,010 61,634 84,432 3,320,894 1,539,302 24,760,474 72,175 92,291 126,648 181,170 6,362,527 22,511,461 122,037 183,606 253,806 21,827 1,122,503 4,034,919 197,288 345,735 374,940 323,368 4,309,570 3,435,273 147,295 324,494 501,292 297,119 4,368,873 3,346,101 207,813 600,033 2,512,240 583,235
1,642,224 1,016,741 264,604 780,537 6,188,468 11,971 9,904,545 253,135 5,137,040 665,300 76,115 6,131,590 3,772,955
6,015,528 662,429 1,588,829 _ (603,062) 7,663,724 5,287,220 5,287,220 2,376,504
Net assets
Share capital Reserves Accumulated Loss Shareholders equity Advance against proposed rights issue
81
41.4 Operational Risk Management Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. The Bank seeks to ensure that key operational risks are managed in a timely and effective manner through a framework of policies, procedures and tools to identify, assess, monitor, control and report such risks. The key objectives of Operational Risk measurement and management include: Ensuring continued solvency of the Bank through capital adequacy and enhanced understanding and management of significant operational risk exposures. Ensuring that customer impact is minimized through proactive and focused risk management practices. Ensuring senior management attention on significant operational risk exposure areas and that risk mitigation is given prioritized focus. The IRMC has the responsibility to supervise and direct the management of operational risks and key operational risk exposures. The IRMC is also responsible for ensuring that adequate and appropriate policies and procedures are in place for the identification, assessment, monitoring, control and reporting of operational risks. The Bank has undertaken the following high-level strategic initiatives for the effective implementation of Operational Risk Management: Developing policies, procedures and defining end to end information flow to establish a vigorous governance infrastructure. Putting in place risk and control self assessment framework across the bank. Collection of Operational Loss data across the bank and take remedial / corrective action as required. 42. DATE OF AUTHORIZATION FOR ISSUE These unconsolidated financial statements were authorized for issue on February 22, 2012 by the Board of Directors of the Bank.
Badar Kazmi

Chairman / Director
Tejpal Singh Hora

Director

Director
82
Annual Report 2011
Statement showing written-off loans or any other financial relief of five hundred thousand rupees or above provided during the year ended December 31, 2011
(Rupees '000')
Name of Individual / partners / directors Name
ZULFIQAR AHMED 32202-2514989-9 MOHAMMAD ABBAS 703 60 763 703 60
Annual Report 2011

Outstanding Liabilities Before Adjustments Fathers / Husbands Name Principal Total Accrued Mark-up Others Principal written off Interest/ Mark-up written off Other Financial Relief
-
Annexure - 1
S.No.
Name & Address of borrower
NIC No.
Total
763
ZULFIQAR AHMED HOUSE # B-441, 1ST FLOOR, PEOPLE COLONY, BLOCK N, NORTH NAZIMABAD, KARACHI. ZEESHAN AHMED QURESHI 42201-2054225-7 MUHAMMAD HANIF 836 488 1,324 836 488
ZEESHAN AHMED QURESHI HOUSE NO 706/219, FATIMAH JINNAH COLONY, JAMSHED ROAD NO 3, KARACHI. ZAFAR IQBAL CHUDARY 35201-1322748-1 CHUDARY MUHAMMAD RAFIQ 594 98 692 594
1,324
ZAFAR IQBAL CHUDARY HOUSE NO 35/1, STREET NO 1, CROWN PARK, BAGHBAN PURA, LAHORE. TOUQEER IQBAL 36302-5874120-1 MUHAMMAD IQBAL JAWAID 667 110 777
98
692
TOUQEER IQBAL H NO 524, WARD NO 8 H MOHALA HAKEEMON WAL INSIDE HARM GATE, MULTAN. SHER MUHAMMAD 35201-3903886-5 NADIR KHAN 530 44 574
667
110
777
SHER MUHAMMAD House # 8/A, STREET # 3, SHAHEEN PARK, MUGHAL PURA, LAHORE. SHABAB ALI SHEIKH 37402-7515167-1 SHEIKH MUHAMMAD SALEEM 942 157 -
530
44
574
SHABAB ALI SHEIKH HOUSE # 692, STREET 100-A I-10/4, ISLAMABAD. SADIA RASHEED 42301-4740346-6 SARDAR ABDUL RASHEED 588 52
1,099
942
157
1,099
SADIA RASHEED FLAT NO. 104, BEST HOMES, BLOCK-2, CLIFTON, KARACHI. 31202-4365671-3 SHER MUHAMMAD 698
640
588
52
640
RANA KHALID MEHMOOD RANA KHALID MEHMOOD RANA KHALID MEHMOOD BACK SIDE ABBAS GOODS TRANSPORT, MULTAN ROAD, BASTI BINDRA, BAHAWALPUR. RAJA JAWAID SULTAN 42101-3099261-1 RAJA MUHAMMAD INAYAT KHAN
61
759
698
61
759
RAJA JAWAID SULTAN HOUSE NO. R-739, AL NOOR SOCIETY, BLOCK-19, FEDERAL B. AREA, KARACHI. RAFIQ QASIM ALI 42101-1645106-3 QASIM ALI
1,124
186
1,310
1,124
186
1,310
10
RAFIQ QASIM ALI FLAT NO. L 7 3 E 1, GULSHAN E KARIM, NAZIMABAD, KARACHI. NAVEED AHMED 35202-2648398-5
942
157
1,099
942
157
1,099
11
NAVEED AHMED HOUSE NUMBER 170/B, SECTOR ARMY OFFICER HOUSING SOCIETY, ASKARI-10, AIRPORT, LAHORE. NAEEM UDDIN 42201-3576503-9
CH GHULAM HUSSAIN
1,155
181
1,336
1,155
181
1,336
12
NAEEM UDDIN HOUSE NO. 69-L, BLOCK-2, P.E.C.H.S., KARACHI. NAEEM AHMED 37301-7260054-9
WAHEED UDDIN
504
307
811
504
307
811
13
NAEEM AHMED HOUSE NO. C-424, BILAL TOWN, JHELUM. NADEEM YASEEN SHANAWAR 35102-5630501-7
SHEIKH GHULAM AHMED
1,313
210
1,523
1,313
210
1,523
14
NADEEM YASEEN SHANAWAR HOUSE NO. 19, S-93 STREET, MIAN SKENDAR MAIN BAZAR ROAD, KOT KASUR, KASUR. NADEEM NISAR AHMED
MUHAMMAD YASEEN
1,488
794
2,282
1,488
794
2,282
15
NADEEM NISAR AHMED FLAT NO. A-97, ERUM GARDEN, BLOCK 13/D-3, GULSHAN-E-IQBAL, KARACHI.
42201-6070613-7
NISAR AHMED
636
104
740
636
104
740
16
NADEEM NADEEM PLOT NO. 137/3, FLAT NO. B-514, 5TH FLOOR. OWN PARADISE APPARTMENT, GARDEN WEST, KARACHI. MUSHTAQ ALI
42301-1647265-5
MUHAMMAD ISMAIL
675
129
804
675
129
804
17
MUSHTAQ ALI HOUSE # 303, ZANAB BLOCK-B, 3RD FLOOR, ZAINBIYA SAKOON BUILDING, NUMAISH, KARACHI.
42201-0639447-7
BARKAT ALI
645
106
751
645
106
751
18
MUHAMMAD YOUSUF SHEIKH FLAT # C 114, AL MUSTAFA PRIDE, 1ST FLOOR , BLOCK C-P/T-L-2/31, AL MUSTAFA PIDE, REHMAT MASJID STREET, KARACHI.
MUHAMMAD YOUSUF SHEIKH
42301-6944454-9
MEHMOOD SHEIKH JI
576
92
668
576
92
668
83
84 Statement showing written-off loans or any other financial relief of five hundred thousand rupees or above provided during the year ended December 31, 2011
(Rupees '000')
MUHAMMAD SOHAIL KHAN 42101-1788809-9 MUHAMMAD SHARIF KHAN 674 112 786 674 112 -
Annexure - 1
Outstanding Liabilities Before Adjustments Fathers / Husbands Name Principal Total Accrued Mark-up Others Principal written off Interest/ Mark-up written off Other Financial Relief Total
786
S.No.
NIC No.
19
MUHAMMAD SOHAIL KHAN HOUSE # C-6-A, FIRDOS COLONY, LIAQUATABAD TOWN, GULBAHAR, KARACHI. 35202-1359856-7 MUHAMMAD AKBAR BUTT 979 158 1,137 979 158
20
MUHAMMAD SHOAIB BUTT MUHAMMAD SHOAIB BUTT HOUSE NO. 177, STREET NO. 8, BS SHARIF PARK, OUT FALL ROAD, USMAN ROAD, SANAT NAGAR, LAHORE. MUHAMMAD SALEEM 42201-0550983-1 MUHAMMAD SHARIF 890 147 1,037 890
1,137
21
MUHAMMAD SALEEM HOUSE # 30/1, STREET-19, MODEL COLONY, KARACHI. MUHAMMAD NAEEM 42201-7197677-5 ALI MUHAMMAD 1,124 186 1,310 1,124
147
1,037
22
MUHAMMAD NAEEM HOUSE NO. Q-190, Q AREA, KORANGI NO. 2, KARACHI. MUHAMMAD MUNAAF 42101-2381014-1 ABDUL SATTAR 850 140 990
186
1,310
23
MUHAMMAD MUNAAF HOUSE NO. 151, BANTWA NAGAR, SIR SULEMAN SHAH ROAD, LIAQATABAD, KARACHI. MUHAMMAD IRSHAD 35404-1531747-3 WALI MUHAMMAD 824 119 943
850
140
990
24
MUHAMMAD IRSHAD TOKRIYAN WALA BAZAR, SHEIKHPURA. MUHAMMAD AMIN 42101-8735231-9 MUHAMMAD MOOSA 846 136 -
824
119
943
25
MUHAMMAD AMIN FLAT NO. 409, SILANI CENTRE, BARAR SOCIETY, KARACHI. MOHSIN ZAFAR 35202-9475154-7 MUHAMMAD AZAM ZAFAR 1,226 217
982
846
136
982
26
MOHSIN ZAFAR HOUSE # 1, ZAFAR MANZIL, STREET # 3, BUSHRA ZAFAR STREET, OPPOSITE WAPDA OFFICE, MAIN BAZAR SANDA KALAN SECTOR 85, LAHORE. MOHAMMAD RIZWAN AHMED KHAN 42201-5543652-5 IRFAN AHMED KHAN 1,450
1,443
1,226
217
1,443
27
MOHAMMAD RIZWAN AHMED KHAN HOUSE NO. 001/VI, BILLYS TERRACE, BLOCK 10-A, GULSHAN-E-IQBAL, KARACHI. MOHAMMAD ANIS KHAN 42201-6711711-1 MUHAMMAD NAFOOS KHAN
235
1,685
1,450
235
1,685
28
MOHAMMAD ANIS KHAN HOUSE NO. 53, SECTOR 35/B, KORANGI NO. 4, KARACHI. MOHAMMAD JAVED 42301-5600855-9 MOHAMMAD YOUSUF
850
140
990
850
140
990
29
MOHAMMAD JAVED FLAT # G-1, GROUND FLOOR, SEVEN STAR PRIDE, ISLAM GANJ, GARDEN WEST, KARACHI. MOHAMMAD IRFAN 42201-0436254-7
526
77
603
526
77
603
30
MOHAMMAD IRFAN HOUSE # R-78, BLOCK # 13 / D - 3, GULSHAN-E-IQBAL, KARACHI. MEHMOOD AHMED 33100-0707614-1
MOHAMMAD MUBEEN
517
38
555
517
38
555
31
MEHMOOD AHMED ST NO. 1, P-97/15-C, GULISTAN COLONY NO. 2, MOH. HAFEEZABAD, FAISALABAD. MALIK SHAHID AMIN 35202-0227040-9
SAGHEER AHMED
681
113
794
681
113
794
32
MALIK SHAHID AMIN HOUSE NO, 279, PAK BLOCK MUHALLAH ALLAMA IQBAL TOWN LAHORE LAHORE. MALIK MUHAMMAD SHAKEEL
MALIK MOHD AMIN
1,670
145
1,815
1,670
145
1,815
33
MALIK MUHAMMAD SHAKEEL HOUSE NO. D/17, SHAH FAISAL COLONY NO.1, KARACHI.
35202-5832996-1
MANZOOR ILLAHI
616
102
718
616
102
718
34
KHALID KHALID HOUSE # A-19, SECTOR # 8/B, BILAL COLONY, KORANGI, KARACHI. KASHIF JAVED
42201-0849422-7
MUHAMMAD SAEED
984
160
1,144
984
160
1,144
35
KASHIF JAVED HOUSE NO. 20, BLOCK-78, SECTOR 5-D, NEW KARACHI, KARACHI. KAMAL AKHTER
42101-1569978-5
MUHAMMAD JAVED BALOCH
654
108
762
654
108
762
Annual Report 2011
36
KAMAL AKHTER HOUSE NO. R-472, BLOCK NO.16, F.B. AREA, KARACHI.
42101-1429126-1
MUHAMMAD RAFIQ
850
140
990
850
140
990
(Rupees '000')
JAMSHED AHMED KHAN 42201-2336948-7 GULSHED AHMED KHAN 550 91 641 550 91
Annual Report 2011

-
Annexure - 1
S.No.
NIC No.
Total
641
37
JAMSHED AHMED KHAN H NO. R-13,1ST FLOOR, SECTOR 33-C, KORANGI NO. 2, KARACHI. 42301-0807185-3 HAYDER ALI 650 64 714 650
38
IMRAN ALI IMRAN ALI FLAT NO. 604, 6TH FLOOR, EZAN GARDEN, PARSI COLONY, SOLDIER BAZAR, KARACHI. IMAD AZHAR HUSSAIN 42101-1857514-3 SYED AZHAR HUSSAIN 564 97 661 564
64
714
39
IMAD AZHAR HUSSAIN B-54, BLOCK-2, GULISTAN-E-JOHAR, KARACHI. HUMA JAMEEL 42101-8731397-4 JAMEEL AHMED 660 109 769
97
661
40
HUMA JAMEEL B-91, BLOCK-L, NORTH NAZIMABAD, KARACHI. HARIS KHALID 42201-2723198-1 MIAN KHALID UMAR 686 60 746
660
109
769
41
HARIS KHALID PLOT NO. 396/1, PEDRO DESOZA ROAD, GARDEN EAST, KARACHI. FAISAL MEHMOOD 35201-8520390-5 SH SADIQ ALI 596 50 -
686
60
746
42
FAISAL MEHMOOD HOUSE # 16, JAVED STREET, MAQBOOL ROAD, ICHRA, LAHORE. DILDAR SHAIKH 42201-1023126-3 DOST MUHAMMAD SHAIKH 660 109
646
596
50
646
43
DILDAR SHAIKH HOUSE NO. C-37/1, BLOCK 10-A, GULSHAN-E-IQBAL, KARACHI. 42301-9283363-9 CHAUDHRY MUHAMMAD AHMED 684
769
660
109
769
44
CHAUDHRY MUHAMMAD HANIF CHAUDHRY MUHAMMAD HANIF PLOT NO. 6-C, FLAT-1, RAHAT COMMERCIAL LANE NO. 1, PHASE-VI, D.H.A., KARACHI. ZAHID MEHMOOD MALIK ZAFAR MEHMOOD MALIK SHAHEEN BEGUM MUHAMMAD JAVAID MUHAMMAD RAEES AJMAL ELAHI 42101-0855332-1 REHEM ELAHI 42101-3544568-8 42101-7638805-1 42101-1912921-7 MUHAMMAD YAMIN 42101-4009799-9 42101-2187809-1 SULTAN MAHMUD MALIK
67
751
684
67
751
45
AYAZ SECURITY SERVICES PVT. LTD. A-2, 1ST FLOOR, PLOT NO. A-45, RAILWAY HOUSING SOCIETY, BLOCK 13-B, GULSHAN-E-IQBAL, KARACHI.
790
140
930
790
140
930
46
AL HUDAIBIYAH (PVT) LTD. SUIT NO. 104, IST FLOOR, SUPREME SHOPPING MALL, BLOCK-18, GULISTAN-E-JAUHAR, KARACHI.
645
106
751
645
106
751
47
AJMAL ELAHI FLAT NO. 205, ZUBIADA HEIGHTS, NAZIMABAD, KARACHI. ABDUL HAFEEZ 36302-1674740-9
660
109
769
660
109
769
48
ABDUL HAFEEZ HOUSE NO. 49/51 ST NO. BLOCK-Y, NEW MULTAN, MULTAN. ABDUL MAJEED 35202-8897922-7
ABDUL RASHEED
520
46
566
520
46
566
49
ABDUL MAJEED 802 G-4, JOHAR TOWN, LAHORE. ABDUL JABBAR 42201-8568926-9
ALI MUHAMMAD
517
38
555
517
38
555
50
ABDUL JABBAR HOUSE NO.G-128, GALI NO.1, GULFISHAN SOCIETY, AZEEMPURA, KARACHI. MUHAMMAD EHTESHAM
SARDAR ALI
1,335
221
1,556
1,335
221
1,556
51
MUHAMMAD EHTESHAM HOUSE NO. 87, SECTOR 35-B, KORANGI NO. 4, KARACHI. SYED NAJAMUL HASSAN
42201-2508144-1
MUAHMMAD YOUNUS
920
81
1,001
920
81
1,001
52
SYED NAJAMUL HASSAN C-177, BLOCK-J, NORTH NAZIMABAD, KARACHI. MUHAMMAD IRSHAD
42101-4805014-1
SYED AZIZ UR REHMAN
1,814
90
1,904
1,814
90
1,904
53
MUHAMMAD IRSHAD FLAT NO. 9, 4TH FLOOR, SAEEDA MANSION, STREET NO. 6, BURNS ROAD, KARACHI.
42301-1019531-7
MUHAMMAD IDREES
870
143
1,013
870
143
1,013
54
MUHAMMAD AZAM SHEIKH VOHRA HOUSE, CLUB ROAD, HOUSE NO. 404, CIVIL LINE, SARGODHA.
MUHAMMAD AZAM SHEIKH
38403-2647375-7
SHEIKH MANZOOR AHMAD
623
94
717
623
94
717
85
(Rupees '000')
MUHAMMAD ASLAM 42101-8932412-5 MURAD KHAN 880 145 1,025 880 145 -
Annexure - 1
1,025
S.No.
NIC No.
55
MUHAMMAD ASLAM HOUSE # L-191, SECTOR 5-B-2, NORTH KARACHI, KARACHI. 37405-0259963-3 KHAWAJA NAZWAZ ULLAH AKHWAND 1,439 126 1,565 1,439 126
56
KHAWAJA NASIR MUHAMMAD KHAWAJA NASIR MUHAMMAD HOUSE NO. 109/8A, ST NO. 17, BEAUTY BANK CHAKLALA SCHEEM-3, RAWALPINDI. MUHAMMAD ISHTIAQ 35202-8761872-9 MUHAMMAD DIN 545 48 593 545
1,565
57
MUHAMMAD ISHTIAQ HOUSE NO. 27, STREET NO. 17, SADI PARK MAZONG, LAHORE. ASIF HAIDER 13503-7680287-9 HAIDER ZAMAN 968 166 1,134 968
48
593
58
ASIF HAIDER HOUSE NO. 29-B, MOHALLA GHAZI KOT TOWN SHIP SECTOR-D MANSEHRA, MANSEHRA. MALIK TANVEER SUBHANI 81302-9551936-3 MALIK KARAMAT ULLAH 716 62 778
166
1,134
59
MALIK TANVEER SUBHANI MAHAJAR COLONY, KHALIQABAD, MIRPUR AK, MIRPUR. MUHAMMAD NAVEED QADRI 31304-9601904-1 HAFEEZ ULLAH 730 122 852
716
62
778
60
MUHAMMAD NAVEED QADRI HOUSE # 1099, STREET NO. 01, MEHMOODABAD 06, KARACHI. SYED SARFARAZ HUSSAIN ZAIDI 36302-6484853-5 SYED NAZAR ABBAS ZAIDI 713 119 -
730
122
852
61
SYED SARFARAZ HUSSAIN ZAIDI ST NO. 5, HOUSE NO. 2, GULZAIB COLONY, MULTAN. JAMEEL AHMED 42101-7783834-9 MUHAMMAD MIRAJ UDDIN 629 104
832
713
119
832
62
JAMEEL AHMED HOUSE # 1-E 16/10 NAZIMABAD # 1, KARACHI. MUHAMMAD ASIM 35202-2741488-5 MUHAMMAD QASIM 882
733
629
104
733
63
MUHAMMAD ASIM G-2, PNT COLONEY, MULTAN ROAD, LAHORE. MALIK ABDUL KHALIQ 42000-0381103-1 MALIK ABDUL JALIL
76
958
882
76
958
64
MALIK ABDUL KHALIQ HOUSE A-19, BLOCK-I, NORTH NAZIMABAD, KARACHI. MUHAMMAD ISHFAQ 35202-5275736-7 RIAZ AHMAD
890
147
1,037
890
147
1,037
65
MUHAMMAD ISHFAQ 4-A, SIRAJ BUILDING BEGUM ROAD, MOZANG, LAHORE. ABDUL RASHEED 42000-0467446-7 ABDUL MAJEED
638
57
695
638
57
695
66
ABDUL RASHEED HOSUE 3-D-9/9, SECTOR 3-D, DAKHANA NAZIMABAD, KARACHI. RASHID HUSSAIN 42201-5697178-9
898
153
1,051
898
153
1,051
67
RASHID HUSSAIN HOUSE # 15, GALI NO.40, AREA 37, LANDHI 3 1/3, KARACHI. AZHAR IQBAL 38403-6466933-1
SHAHZADA NASEER QURESHI
917
152
1,069
917
152
1,069
68
AZHAR IQBAL HOUSE NO. 53, SULTAN COLONY ROAD, SARGODHA. MALIK MUHAMMAD ALI
ZAHEER AHMAD
584
78
662
584
78
662
69
MALIK MUHAMMAD ALI HOUSE NO. B3/65, MOHALLA MALIK FEROOZ DIN, RAHIMYAR KHAN.
31303-2420170-7
MALIK MUHAMMAD SAEED AKHTER
506
68
574
506
68
574
70
KHALID SAEED BUTT KHALID SAEED BUTT HOUSE NO. 239/B/2, SULTAN AHMED KHAN, STREET CHAH BOHAR WALA, NEAR THANA JALIL ABAD, MULTAN. MUSHTAQ ALI
36302-6617811-7
SAEED ULLAH BUTT
672
111
783
672
111
783
71
MUSHTAQ ALI HOUSE NO 111-B/2, 1ST FLOOR, BAITUL MAJEED, SOLDIER BAZAR NO. 2, KARACHI.
42201-3134944-9
HUSSAIN ALI
506
97
603
506
97
603
Annual Report 2011

KHAWAJA SAADAT MASOOD SIDDIQUE
72
KHAWAJA SAADAT MASOOD SIDDIQUE HOUSE NO. 3081/8M PEER MARKET OUTSIDE BOHAR GATE, MULTAN.
36302-3891439-7
KHAWAJA ABDUL RAHEEM SIDDIQUE
543
104
647
543
104
647
(Rupees '000')
SAYED ASAD ALI MEHMODI 42201-2693411-1 SYED AHSAN ALI MEMOODI 714 53 767 714 53
Annual Report 2011

-
Annexure - 1
S.No.
NIC No.
Total
767
73
SAYED ASAD ALI MEHMODI HOUSE # 638-C, BLOCK-2, PECHS, KARACHI. IMRAN AHMED QURESHI 42000-9406939-7 MUHAMMAD AKRAM QURESHI 1,275 515 1,790 1,275
74
IMRAN AHMED QURESHI HOUSE NO. E/43, LIAQUAT ASHRAF COLONY 1, MEHMOODABAD GATE, KARACHI. 42201-8799735-5 SYED NASIR ABBAS RIZVI 648 108 756 648
515
1,790
75
SYED ABBAS RIZVI SYED ABBAS RIZVI HOUSE NO.2, STREET NO.E, BLOCK-4, SINDHI JAMIAT CO-OPRETIVE SOCIETY, LANDHI BIN QASIM TOWN,KARACHI. MUHAMMAD HANIF 42301-0701345-3 MUHAMMAD ISMAIL 686 61 747
108
756
76
MUHAMMAD HANIF HOUSE NO. 02, HAJI PEER WALI GALI, BARA-E-IMAM, NISHTER ROAD, KARACHI. MUHAMMAD IRFAN 35202-2344438-7 MUHAMMAD SAIEN 707 117 824
686
61
747
77
MUHAMMAD IRFAN HOUSE # 61 STREET # 53, GHAFFAR STREET MOHALLAH CAPTAIN JAMAL ROAD, SANDA KALAN, LAHORE. KHUSHI MUHAMMAD 42501-1160886-7 NOOR MUHAMMAD 1,289 218 -
707
117
824
78
KHUSHI MUHAMMAD HOUSE NO. P-126, PUNJAB TOWN, MALIR HALT, KARACHI. RANA HABEEB ULLAH 42401-2369912-9 RANA ATA ULLAH 507 79
1,507
1,289
218
1,507
79
RANA HABEEB ULLAH HOUSE NO. B-318, GALI NO.30, BALOCH GOTH, SHAH FAISAL MOHALLAH, SECTOR 7-F, KARACHI. MUHAMMAD RIZWAN ASLAM 35202-2392049-7 SHEIKH MUHAMMAD ASLAM 667
586
507
79
586
80
MUHAMMAD RIZWAN ASLAM HOUSE # 12, STREET # 15, QILA LAKSHMAN SINGH, RAVI ROAD, LAHORE. ABDUL MAALIK 42301-0943202-9 MOHAMMAD SALEEM
110
777
667
110
777
81
ABDUL MAALIK HOUSE # 192/2, BLOCK # B, KHUDADAD COLONY, CAMBRON EMBBSI, SHAHRAH-E-QUIADEEN, KARACHI. ABDUL QADIR 42201-0469800-7 QAZI ABDUL MALIK
1,044
172
1,216
1,044
172
1,216
82
ABDUL QADIR HOUSE NO E/268, NATHA KHAN GOTH, SHAH FAISAL COLONY, KARACHI. JAWED AKHTAR 42201-3465151-3 ABDUL SATTAR
860
142
1,002
860
142
1,002
83
JAWED AKHTAR B-38/1, BLOCK # 13-C, GULSHAN-E-IQBAL, KARACHI. MALIK KARAMAT ULLAH 81302-5597003-3
1,720
283
2,003
1,720
283
2,003
84
MALIK KARAMAT ULLAH KHALIQ ABAD PO KHAS MIRPUR AK MIRPUR AK MIRPUR. ASAD ULLAH KHAN 17301-4389448-5
MALIK SHAMUS DIN
746
64
810
746
64
810
85
ASAD ULLAH KHAN HOUSE NO. 31 A III, GULBERG-III, LAHORE. SYED MOHAMMAD OBAID ATHAR WASTI 42101-2891157-5
FARID ULLAH KHAN
1,682
279
1,961
1,682
279
1,961
86
SYED MOHAMMAD OBAID ATHAR WASTI HOUSE # R-1183, BLOCK # 9, F.B. AREA, KARACHI. MUHAMMAD NAEEM ASMAT
SYED MUHAMMAD IDRESS AKHTAR WASTI
1,349
223
1,572
1,349
223
1,572
87
MUHAMMAD NAEEM ASMAT HOUSE NO. 131, STREET NO 48, SECTOR I-8/2, ISLAMABAD. MUKESH KUMAR
42201-1325391-3
ASMAT ULLAH
915
89
1,004
915
89
1,004
88
MUKESH KUMAR FLAT C-303, NAZ PLAZA, M.A. JINNAH ROAD, KARACHI. MUMTAZ AHMED
42301-0151175-3
KANAYOMAL
870
143
1,013
870
143
1,013
89
MUMTAZ AHMED HOUSE NO. 659, BLOCK-E, GULSHAN RAVI, LAHORE. ALI RAZA SHAHANI
35202-5112823-9
KHUSHI MUHAMMAD
662
117
779
662
117
779
90
ALI RAZA SHAHANI 83 ZENAT BLOCK, ALLAMA IQBAL TOWN, LAHORE.
35202-2714529-5
GHULAM HUSSAIN KHOKHAR
890
147
1,037
890
147
1,037
87
(Rupees '000')
KHALEEL AHMED 31303-2452440-7 MUHAMMAD IBRAHIM 674 112 786 674 112 -
786
Annexure - 1
S.No.
NIC No.
91
KHALEEL AHMED HOUSE NO. 01, SADIQ BAZAR, RAFIQUE CLOTH HOUSE, RAHIMYAR KHAN. MUSTANSAN GHIAS SADDIQI 35201-4732112-7 GHAIS SIDDIQUE 688 114 802 688 114
92
MUSTANSAN GHIAS SADDIQI HOUSE NO. 120, BLOCK-D, PUNJAB COOPERATIVE HOUSING SOCIETY, DEFENCE, LAHORE. SAIMA 42301-0864662-6 AHMED 525 100 625 525
802
93
SAIMA FLAT NO. 214, 2 FLOOR, FAIZAN HEIGHTS, KHARADAR, MOOSALANE, KARACHI. 42501-4958430-3 MUHAMMAD KABEER 522 100 622 522
100
625
94
MUHAMMAD SHAMIM MUHAMMAD SHAMIM FLAT NO. C-12, 3RD FLOOR, A ONE COMPLEX PHASE # 2, MAIN ABUL HASSAN ISPHANI ROAD, GULSHAN-E-IQBAL, KARACHI. MUHAMMAD SHARJIL GOPLANI 42301-4432674-7 ABDUL SHAKOOR 1,088 145 1,233
100
622
95
MUHAMMAD SHARJIL GOPLANI HOUSE NO. 75-A/1, STREET-33, KHYABAN-E-SEHER, PHASE-V, EXTENTION D.H.A., KARACHI. ZAFAR IQBAL 42201-0242921-7 MUHAMMAD IQBAL 637 105 742
1,088
145
1,233
96
ZAFAR IQBAL FLAT NO. A-1/6, RUPALI RESIDENCY, BLOCK-19, GULSHAN-E-IQBAL, KARACHI. KHALID JAWED 42401-5786557-5 MUHAMMAD ANWAR 712 136 -
637
105
742
97
KHALID JAWED HOUSE NO 515, 3RD FLOOR, GALI NO 5, BLOCK-D, SHAIR SHAH COLONY, KARACHI. ASIM NAZIR GILL 35201-7719875-5 NAZIR AHMAD GILL 593 49
848
712
136
848
98
ASIM NAZIR GILL 104-D, PUNJAB COOPERATIVE HOUSING SOCIETY, CANTT LAHORE. MUHAMMAD IRFAN 41303-0170008-7 ABDUL RAZZAQ 1,514
642
593
49
642
99
MUHAMMAD IRFAN HOUSE NO. F, PLOT NO. 38, SHAKHI PIR ROAD, HYDERABAD. ASIM IRSHAD 35404-6029816-5 MUHAMMAD IRSHAD
722
2,236
1,514
722
2,236
100
ASIM IRSHAD KASHIF PARK ST NO. 1, HOUSING COLONY, SHEIKHUPURA. JAVED HUSSAIN 37401-2782569-5 SARDAR ALI
2,020
431
2,451
2,020
431
2,451
101
JAVED HUSSAIN HOUSE NO. 38, QURESHIA STREET, GUJAR KHAN. ABDUL LATIF 42501-4233635-9 YASEEN KHAN
1,874
633
2,507
1,874
633
2,507
102
ABDUL LATIF HOUSE A/7, GULSHAN TAYYABI, JAMA-E-MILLIA ROAD, MALIR, KARACHI. MUHAMMAD SALEEM SYED FAISAL AMEER BABER GULZAR BUTT 42201-0291169-1 42301-3238650-9 42101-5634542-7
645
106
751
645
106
751
103
FLEX POINT 1ST FLOOR, SR 9/102, REATHA SWAMI BUILDING, PAKISTAN CHOWK, KARACHI.
SYED AMEER HUSSAIN ABDUL SATTAR GULZAR MUHAMMAD BUTT
1,091
179
1,270
1,091
179
1,270
104
BABER GULZAR BUTT HOUSE NO. 388/3, LASBELLA HOUSE, GARDEN, KARACHI. JAMAL NASIR
953
168
1,121
953
168
1,121
105
JAMAL NASIR HOUSE C-4, BLOCK-20, RAILWAY SOCIETY, GULISTAN-E-JOHAR, KARACHI. MUNASIB KHAN
42101-1846738-1
KHUDA BUKSH
890
147
1,037
890
147
1,037
106
MUNASIB KHAN HOUSE NO. B-130, GULSHAN-E-RAFI, SOCIETY JAMIA MILLIA ROAD MALIR, KARACHI. WASIF KHAN MUHAMMAD MATEEN KHAN SAMINA GULRAIZ CHOWDHRY MUHAMMAD GULRAIZ KHAN
42501-1263522-9
BEHRAM KHAN
926
154
1,080
926
154
1,080
107
MATEEN FOODS INTERNATIONAL (PVT) LTD SB-1, BLOCK-1, PAKISTAN TULIP VELLEY, GULISTAN E JAUHAR, KARACHI.
91506-0135669-1 42101-9830916-3 42101-5896501-0 42101-2790791-9 42401-5421870-7
MUHAMMAD MATEEN KHAN CHOWDHRY MUHAMMAD GULRAIZ KHAN MOHAMMAD KHALIL KHAN CH.MOHAMMAD IBRAHIM KHAN ABDUL RASHEED
1,189
187
1,376
1,189
187
1,376
Annual Report 2011
108
FARHAN RASHEED FARHAN RASHEED HOUSE NO.760, SECTOR 5/J, SAEEDABAD, BALDIA TOWN, KARACHI.
688
113
801
688
113
801
(Rupees '000')
SAEED AHMED 36303-1751133-3 MUHAMMAD RAFIQ 624 103 727 624 103
Annual Report 2011

-
Annexure - 1
S.No.
NIC No.
Total
727
109
SAEED AHMED 318, E BLOCK, SHAH RUKNAY ALAM COLONY, MULTAN. 42301-2227462-1 ABDUL KHALIQ 828 136 964 828
110
NAFEES UR REHMAN NAFEES UR REHMAN FLAT # D 1, 1ST FLOOR, PLOT # 68/9/2 B AL YOUSUF GARDEN GHULAM HUSSAIN QASIM ROAD, GARDEN WEST, KARACHI. SHEIKH ABDUL REHMAN 42301-4507311-5 SHEIKH EHSAN ELAHI 949 84 1,033 949
136
964
111
SHEIKH ABDUL REHMAN FLAT NO 25, 5TH FLOOR, HUSSANI BUILDING, HAKKANI CHOWK, KARACHI. ADNAN ATHER 37405-9079652-3 MUHAMMAD ATHER SHAMIM 891 80 971
84
1,033
112
ADNAN ATHER HOUSE NO CB-403, AYAN STREET, QUBA MARKET, LANE NO 05, PESHAWAR ROAD, RAWALPINDI. GHULAM MUHAMMAD MUGHAL 37201-0204298-1 KHAN MUHAMMAD MUGHAL 513 68 581
891
80
971
113
GHULAM MUHAMMAD MUGHAL HOUSE NO F-2/81, MOHALLAH HUSSAINI, NEAR GHALAH MANDI CHAKWAL. ISHTIAQ AHMED 81302-2693057-9 CHAUDHARY ABDUL KHALIQ 556 106 -
513
68
581
114
ISHTIAQ AHMED HOUSE NO 26 B, SECTOR B 4, MIRPUR AK MIRPUR. MUHAMMAD AJAZ 35201-8851023-7 MUHAMMAD SHAREEF 609 101
662
556
106
662
115
MUHAMMAD AJAZ PLOT NO. MIIE-A 265, 1ST FLOOR, STREET 4, TANGA STAND BLOCK-A, URDU BAZAR, SHERSHAH, KARACHI. ABDUL MAJID CHAUDRY 42201-4721695-9 ABDUL MALIK 665
710
609
101
710
116
ABDUL MAJID CHAUDRY FLAT # A-10, PLOT NO. 1-2-3, DOLMEN ARCADE, SHAHEED-E-MILLAT BAHADURABAD, KARACHI. MAKHDOOM QAISER UZ ZAMAN HASHMI 36103-8455109-9 MAKHDOOM FAKHAR U ZAMAN HASHMI
59
724
665
59
724
117
MAKHDOOM QAISER UZ ZAMAN HASHMI COLONY NO 3, HOUSE NO 1382, ST NO 11, BLOCK-A, KHANEWAL. MUHAMMAD BUX 41304-9731729-9 RAHEEM BUX
943
180
1,123
943
180
1,123
118
MUHAMMAD BUX FLAT # 23, SADAF PLAZA, TANDO WALI MUHAMMAD, HYDERABAD. SHEIKH MUHAMMAD KHALIQ UR REHMAN 37405-2752668-9
601
50
651
601
50
651
119
SHEIKH MUHAMMAD KHALIQ UR REHMAN HOUSE M 1001 STREET 41 MOHALLAH AMER PURA, RAWALPINDI. MUHAMMAD ANWAR BAIG 35202-3051540-1
SHEIKH MUHAMMAD HAFEEZ UR REHMAN
526
47
573
526
47
573
120
MUHAMMAD ANWAR BAIG HOUSE NO 31, ST NO 1, MALIK PARK, KARAM NAGAR, KHOKHAR ROAD, LAHORE. AFTAB SHAFIQ 42301-1108264-1
ALI AKBAR BAIG
1,007
165
1,172
1,007
165
1,172
121
AFTAB SHAFIQ HOUSE NO 95/2, 21 STREET, KHAYABAN-E-SEHAR, PHASE-6, D.H.A., KARACHI. NAZEER HUSSAIN 35202-6064872-3
MUHAMMAD SHAFIQ
974
48
1,022
974
48
1,022
122
NAZEER HUSSAIN HOUSE NO 25-A, BLOCK-A, AL FAISAL TOWN, CANTT LAHORE.
GHULAM QADIR
1,207
197
1,404
1,207
197
1,404
123
SHAHBAZ AHMED SHAHBAZ AHMED HOUSE # 673-E, GALI # 4, BLOCK-D, SHER SHAH STREET, 3RD FLOOR, FLAT # 5, KARACHI. MUDASSAR MALIK
33100-1031798-7
GHULAM RASOOL
850
140
990
850
140
990
124
MUDASSAR MALIK HOUSE NO 76, STREET NO 76, NATIONAL TOWN, SANDA ROAD, LAHORE. CHOUDHRY SHABIR AHMED
35202-1432544-3
MALIK MUZAFFAR
621
102
723
621
102
723
125
CHOUDHRY SHABIR AHMED BANGREEL KHURD PO RAWAT, ISLAMABAD.
61101-2925307-5
WADI HUSSIAN
1,418
250
1,668
1,418
250
1,668
126
MALIK TASHIF YOUSAF PUL AIK HABIB PURA PASRUR ROAD C/O MUHAMMAD SALEEM MIR TIMBER MARKET, SIALKOT.
MALIK TASHIF YOUSAF
34603-2824318-7
MALIK MUHAMMAD YOUSAF KHAN
770
121
891
770
121
891
89
(Rupees '000')
ZAHEER UL HASSAN ANSARI 42201-0692690-1 ZAMEER-UL-HASSAN ANSARI 828 136 964 828 136 -
Annexure - 1
964
S.No.
NIC No.
127
ZAHEER UL HASSAN ANSARI D-22, BLOCK-3, CLIFTON BEHIND BILAWAL HOUSE, CLIFTON, KARACHI." ALTAF HUSSAIN 35201-1690262-7 GHULAM HUSSAIN 805 131 936 805 131
128
ALTAF HUSSAIN HOUSE NO. P-41, STREET-3, BLOCK-N, NORTH NAZIMABAD, KARACHI. AKRAM QURESHI 42101-6064246-3 ISLAM UDDIN 650 64 714 650
936
129
AKRAM QURESHI HOUSE L-1062, SECTOR 5 B 2, NORTH KARACHI, KARACHI. RANA MOHAMMAD BABER 42201-5312829-7 RANA MUHAMMAD NASEER 697 123 820 697
64
714
130
RANA MOHAMMAD BABER HOUSE NO 25 A, STREET 17, AREA C, QAYUMABAD, KARACHI. SYED SIBTE HASSAN NAQVI 42101-1615425-1 SYED AZIZ AHMAD NAQVI 938 165 1,103
123
820
131
SYED SIBTE HASSAN NAQVI H NO A-9, RUFI GREEN LAND SECTOR 13-A, GULZAR-E-HIJRI, KARACHI. ISLAM UD DIN 42301-9220125-5 MERAJ UDDIN 572 92 664
938
165
1,103
132
ISLAM UD DIN FLAT NO 302, 3RD FLOOR, SUMAIYA AMARA BUILDING, SULEMAN STREET, SHOE MARKET, KARACHI. MUDASSIR HUSSAIN 42201-2276812-5 MUZAMMIL MIAN 660 109 -
572
92
664
133
MUDASSIR HUSSAIN FLAT NO C-30, PARADISE SQUARE, PLOT NO 5 S NO 205 BLOCK 13/E, GULSHAN-E-IQBAL, KARACHI. HAQ NAWAZ 32103-0269748-1 MUHAMMAD KHAN 637 105
769
660
109
769
134
HAQ NAWAZ HOUSE NO 76, STREET NO 15, CHUDHARY PARK, RASHID ROAD, BILAL GUNJ, LAHORE. MUHAMMAD YOUNUS KARAR 42201-2749316-3 TAYYAB KARAR 924
742
637
105
742
135
MUHAMMAD YOUNUS KARAR HOUSE NO. R-172, BLOCK-11, GULSHAN-E-IQBAL, KARACHI. MUHAMMAD IMRAN 35302-1875428-3 TAJ UDDIN
185
1,109
924
185
1,109
136
MUHAMMAD IMRAN HOUSE NO A-116, SECTOR 11-A, NORTH KARACHI, KARACHI. MUHAMMAD ASLAM 35202-1285025-1 MUHAMMAD SULTAN
660
109
769
660
109
769
137
MUHAMMAD ASLAM H # 141-D, MOHALLA NAWAB TOWN 1 KM RAIWIND ROAD, LAHORE. ABDUL WAHEED 42301-9751257-7 RASHEED AHMED
851
71
922
851
71
922
138
ABDUL WAHEED HOUSE NO 1607, STREET NO 26, AZAM BASTI, KARACHI. MUHAMMAD ARSHAD 33100-3374986-1
1,258
207
1,465
1,258
207
1,465
139
MUHAMMAD ARSHAD HOUSE # 22 STREET # 2 AKBAR ABAD, FAISALABAD. MUHAMMAD AMJAD 35202-5091579-3
HAJI RANJHA
546
90
636
546
90
636
140
MUHAMMAD AMJAD HOUSE NO 286 D, MOHALLAH GULSHAN RAVI, GULSHAN RAVI, LAHORE. ABDUL JABBAR
ABDUL RASHEED
660
109
769
660
109
769
141
ABDUL JABBAR HOUSE L-717, SECTOR 5C2, NORTH KARACHI, KARACHI. MUHAMMAD JAMAL
42101-1433194-3
ABDUL SATTAR
1,720
283
2,003
1,720
283
2,003
142
MUHAMMAD JAMAL HOUSE NO. B-3 LANE NO G-23, BLOCK-05, CLIFTON, KARACHI.
42201-5341639-5
BASHIR AHMED
1,207
197
1,404
1,207
197
1,404
143
MUHAMMAD RIAZ MALIK MUHAMMAD RIAZ MALIK CHAUDHARY QAYYAUM HOUSE STREET AMBALA SWEETS, SANDA ROAD, LAHORE. MOIN SHIWANI
35200-1557583-1
ALLAH BUKH
1,901
316
2,217
1,901
316
2,217
Annual Report 2011
144
MOIN SHIWANI FLAT NO F-07, ROCK HEAVEN APPARTMENT BLOCK-8, CLIFTON, KARACHI.
42301-5979311-3
ABDUL KARIM SHIWANI
1,376
228
1,604
1,376
228
1,604
(Rupees '000')
MUHAMMAD JAWED 42201-7063195-5 ABDUL GHAFFAR 1,376 228 1,604 1,376 228
Annual Report 2011

-
Annexure - 1
S.No.
NIC No.
Total
1,604
145
MUHAMMAD JAWED FLAT NO B 10, 5TH FLOOR, PRINCE HOMES, GARDEN EAST, KARACHI. SYED SHAHID NAYYER 42101-7773135-5 SYED NAYYER RAZA 509 75 584 509
146
SYED SHAHID NAYYER HOUSE NO B-33, BLOCK-I, NORTH NAZIMABAD, KARACHI. ASLAM PERVAIZ 42201-8794775-3 ADDUL QUDDUS 944 84 1,028 944
75
584
147
ASLAM PERVAIZ HOUSE NO 103 PARDESI PALACE JAMSHED ROAD NO 3, KARACHI. ABDUL RASHID 42101-7986470-7 ABDUL WAHID 921 162 1,083
84
1,028
148
ABDUL RASHID HOUSE # 9/8, MASJID QUAT UL ISLAM COLONY, LIAQUATABAD, KARACHI. 42201-0722699-7 MUHAMMAD ANWAR PASHA 930 163 1,093
921
162
1,083
149
MUHAMMAD KASHIF PASHA MUHAMMAD KASHIF PASHA HOUSE # A-98, BLOCK 13-B, RAILWAY HOUSING SOCIETY, GULSHAN-E-IQBAL, KARACHI. ALI ASGHAR KHAN 35201-1340687-7 MUAMBER KHAN 890 147 -
930
163
1,093
150
ALI ASGHAR KHAN HOUSE 312, MAI PATHANI HOTEL STREET STREET 1, QURBAN LINE, GULBERG, LAHORE. MUNAWAR HUSSAIN 42201-7793132-3 ATHER HUSSAIN 653 108
1,037
890
147
1,037
151
MUNAWAR HUSSAIN HOUSE NO. R-13, BLOCK-11, GULSHAN-E- IQBAL, KARACHI. TARIQ MEHMOOD 31303-7342442-5 SALAMAT ALI 597
761
653
108
761
152
TARIQ MEHMOOD HOUSE NO 17-D, STREET NO 02, Z BLOCK, GULSHAN E USMAN, RAHIMYAR KHAN. ABDUL HAMEED 37201-1595130-9 GHULAM JELANI
53
650
597
53
650
153
ABDUL HAMEED HOUSE MADINA TOWN MASOOD ABAD, BHOUN ROAD, CHAKWAL. 37201-7840596-1 SHEIKH SHARIF HUSSAIN
520
69
589
520
69
589
154
SHAHID HAROON QURESHI SHAHID HAROON QURESHI HOUSE NUMBER MCB-1/1013, CHISTIAN DHOKOO ROAD, CHAKWAL. SARWAR ALI 42301-0716384-5
603
99
702
603
99
702
155
SARWAR ALI HOUSE NO 212, 2 FLOOR, STREET NO 4, SECTOR-D, AKHTER COLONY, KARACHI. MUHAMMAD JAVED RAO 36103-4119478-3
MUHAMMAD SIDDIQUE
678
67
745
678
67
745
156
MUHAMMAD JAVED RAO PEOPLES COLONY, HOUSE NO 1-3, STREET NO 4, BLOCK-W, KHANEWAL. SHAHID HASSAN 37405-9875511-3
RAO MUHAMMAD SARWAR KHAN
805
146
951
805
146
951
157
SHAHID HASSAN HOUSE NO 93, BLOCK-B, SATELLITE TOWN, RAWALPINDI. MUHAMMAD HAFIZ UR REHMAN 36302-1533429-9
DILBER HASSAN
680
766
1,446
680
766
1,446
158
MUHAMMAD HAFIZ UR REHMAN 473 MUHALLAH WALLAYATABAD COLONY NO 2, MULTAN. AMIR AZIZ
ZIA UR REHMAN
567
47
614
567
47
614
159
AMIR AZIZ MUSTAFA TAIRAS, FLAT NO 201-202, MAIN BAHADURABAD CHOWRANGI, KARACHI. SYED MASHKOOR AHMED JILANI
42201-1560426-5
ABDUL AZIZ
1,109
109
1,218
1,109
109
1,218
160
SYED MASHKOOR AHMED JILANI HOUSE NO A-112, BLOCK-N, NORTH NAZIMABAD, KARACHI. MUHAMMAD SALEEM
42101-5980079-7
SYED MAHBOOB AHMED JILANI
645
106
751
645
106
751
161
MUHAMMAD SALEEM HOUSE NO. A-42,43, SHEET-25, MODEL COLONY, KARACHI.
42201-0508273-1
HAJI WALI MUHAMMAD
555
29
584
555
29
584
162
MUHAMMAD ASGHAR 15-P, P BLOCK, GREEN TOWN, FAISALABAD.
MUHAMMAD ASGHAR
33203-1418102-7
SANA ULLAH
604
53
657
604
53
657
91
(Rupees '000')
MUHAMMAD HAJI 42401-5540380-1 YOUSUF 860 142 1,002 860 142 -
Annexure - 1
1,002
S.No.
NIC No.
163
MUHAMMAD HAJI HOUSE NO. 1728/341, KS MUJAHID ROAD, JUNA GARH MUHALA, BALIDIA TOWN, KARACHI. MUHAMMAD SAGHIR AHMED 42401-8080664-7 MUHAMMAD RABAN 1,678 275 1,953 1,678 275
164
MUHAMMAD SAGHIR AHMED HOUSE # 739, STREET-32, SAEEDABAD, BALDIA TOWN, UC-5, KARACHI. MATI UR REHMAN 61101-1989406-9 MURID UL HAQ 1,248 109 1,357 1,248
1,953
165
MATI UR REHMAN HOUSE NO. 46-B, STREET NO. 23, G-6/2, ISLAMABAD. MUHAMMAD AQEEL 42201-7632471-7 MUHAMMAD NAQI 681 113 794 681
109
1,357
166
MUHAMMAD AQEEL HOUSE NO 1/623, SHAH FAISAL COLONY, KARACHI. SHEIKH MUHAMMAD ASHRAF 36302-0264230-7 SHEIKH MUHAMMAD GHAFOR 1,007 165 1,172
113
794
167
SHEIKH MUHAMMAD ASHRAF HOUSE NO 2353/9, MUHALA SULTANI, NEAR CHOK GHANTA GHAR, MULTAN. AQEEL AHMED 42201-6326907-7 ATI ULLAH 621 102 723
1,007
165
1,172
168
AQEEL AHMED HOUSE NO R-598, SECTOR NO 1-A, JACOB LINE, KARACHI. KHALID KHAN 42201-8577623-9 ZAMEER ULLAH KHAN 1,225 200 -
621
102
723
169
KHALID KHAN HOUSE NO D-11, GULISTAN-E-RAFI, MALIR, KARACHI. NADEEM KHAN 32203-2794891-9 DARWASH KHAN 890 147
1,425
1,225
200
1,425
170
NADEEM KHAN HOUSE # 02, STREET # 03, HASHTAM COLONY, CHIRA ROAD, SADIQABAD, RAWALPINDI. MOHAMMED AMEEN KHAN 42101-8467837-9 ABDUL SHAKOOR 616
1,037
890
147
1,037
171
MOHAMMED AMEEN KHAN HOUSE NO 269, SECTOR D, BHITTAI COLONY, KORANGI CROSSING, KARACHI. MUHAMMAD SHAKEEL 42401-6255346-7 MUHAMMAD ISMAIL MALIK
102
718
616
102
718
172
MUHAMMAD SHAKEEL HOUSE # 80, F BLOCK, NAVEL COLONY, HAWKSBAY ROAD, MARI POOR, KARACHI. DENZIL AYAN 41304-1158729-9 JAMES
621
102
723
621
102
723
173
DENZIL AYAN FLAT NO.513, REHMAN PLAZA, GARDEN EAST, KARACHI. ZAHOOR ELAHI PIRACHA 35201-8450517-9
562
95
657
562
95
657
174
ZAHOOR ELAHI PIRACHA HOUSE # 141 D NEW SAMANABAD, LAHORE. MUHAMMAD HUSSAIN MIRZA 42201-0722927-7
MEHBOOB ELAHI PIRACHA
805
131
936
805
131
936
175
MUHAMMAD HUSSAIN MIRZA HOUSE NO B 120, BLOCK-13, GULISTAN-E-JAUHAR, KARACHI. HAYAT MUHAMMAD 42201-0500212-7
ASAD ALI MIRZA
557
40
597
557
40
597
176
HAYAT MUHAMMAD HOUSE # K-512, 1ST FLOOR, SECTOR-35/B, KORANGI NO.5, KARACHI. TAJ UL WAQAR
MUHAMMAD QASIM ANSARI
630
55
685
630
55
685
177
TAJ UL WAQAR HOUSE R 395, SECTOR-7, D-2 NORTH KARACHI, KARACHI.
42101-7841648-1
TAJ UL IBRAR
989
164
1,153
989
164
1,153
178
MUHAMMAD KAMRAN MUHAMMAD KAMRAN House NO.221, STREET NO.5 01 SHEIKH MALTOON TOWN, MARDAN. RAJA SHAHID KHURSHEED
16101-6418088-9
HAJI ABDUL RAHIM
792
28
820
792
28
820
179
RAJA SHAHID KHURSHEED HOUSE NO 612-A, STREET NO 8, AFSHAN COLONY, RAWALPINDI. MUHAMMAD MOHSIN
37405-9826561-7
RAJA KHURSHEED AKHTER
887
78
965
887
78
965
Annual Report 2011
180
MUHAMMAD MOHSIN HOUSE 2/A, STREET 109, ISLAM PURA, LAHORE.
35202-6274307-1
MUHAMMAD AMIN
913
160
1,073
913
160
1,073
(Rupees '000')
17301-5361253-1 BARKAT ALI 594 21 615 594 21
Annual Report 2011

-
Annexure - 1
S.No.
NIC No.
Total
615
181
MEHMOOB ALI MEHMOOB ALI HOUSE IN QURESHI STREET, GULBARG # 01, PESHAWAR PESHAWAR. RIZWAN AZHAR 35202-2552005-1 SHEIKH AZHAR HUSSAIN 1,137 168 1,305 1,137
182
RIZWAN AZHAR 232 BI JOHAR TOWN LAHORE, LAHORE. SHEIKH SHAKEEL AKHTAR 34104-2323501-1 SHEIKH MANZOOR AHMED 816 134 950 816
168
1,305
183
SHEIKH SHAKEEL AKHTAR MODEL COLONY, WAZIRABAD WAZIRABAD. MUHAMMAD ABDUL KAREEM 42201-4765314-3 ZAHOOR KHALDI 805 131 936
134
950
184
MUHAMMAD ABDUL KAREEM HOUSE NO, 655, C 1 AREA LANDHI, KARACHI. SHAMSHAD AHMED AKHTAR 36601-5689269-1 SHAHBUDD DIN 510 73 583
805
131
936
185
SHAMSHAD AHMED AKHTAR K T NO 694, STATION CHOWK, TOBA ROAD, NEAR CITY SCHOOL, JHANG SADAR, JHANG. SULEMAN ZAFAR 42301-4794170-1 MUHAMMAD ZAFAR IQBAL 934 155 -
510
73
583
186
SULEMAN ZAFAR HOUSE NO X-12, 19 EAST STREET, DEFENCE PHASE-1, KARACHI. SHEHZAD RASHEED TAREEN 54400-3519472-3 ABDUL RASHEED 860 142
1,089
934
155
1,089
187
SHEHZAD RASHEED TAREEN HOUSE NO 84-C, STREET NO 17, KHAYABAN E SEHAR, PHASE-6, D.H.A., KARACHI. NADEEM ABBAS 42201-6213628-9 MUHAMMAD SALEEM 629
1,002
860
142
1,002
188
NADEEM ABBAS HOUSE 78, SECTOR 32/C, KORANGI 1 1/2, KARACHI. MUHAMMAD AKRAM KHAN 42201-0430937-1 MANZOOR AHMED KHAN
103
732
629
103
732
189
MUHAMMAD AKRAM KHAN HOUSE # E-315-316, SECTOR-E, STREET # 4, AKHTER COLONY, KARACHI. SHAFQUAT ULLAH 42301-2112111-9 ZAFAR ULLAH
658
58
716
658
58
716
190
SHAFQUAT ULLAH HOUSE NO 51/3/1, DAWOODIA COMPOUND, GHULAM HUSSAIN QASIM ROAD, GARDEN WEST, KARACHI. MUHAMMAD USMAN 42301-0892683-5
870
143
1,013
870
143
1,013
191
MUHAMMAD USMAN FLAT NO. B-101, 1ST FLOOR, NASHEMAN ARCADE, PLOT NO 714/4, JAMSHED ROAD NO. 3, KARACHI. MUHAMMAD MADNI 31202-3501430-3
MOHAMMAD HASHIM
690
131
821
690
131
821
192
MUHAMMAD MADNI HOUSE NO BVI 1621, CHOWK SHADRA, BAHAWALPUR. MUHAMMAD ZULFIQAR 42101-8723982-3
SOFI MUHAMMAD RAMZAN
601
53
654
601
53
654
193
MUHAMMAD ZULFIQAR FLAT NO 1641, 1ST FLOOR, BISMILLAH TERRACE, NAZIMABAD # NO: 2, KARACHI. NOMAN ABDUL RAUF 42301-3275034-9
MOHAMMAD ISHAQ
671
127
798
671
127
798
194
NOMAN ABDUL RAUF HOUSE NO A/566, MASOOM SHAH COLONY, MEHMOODABAD, KARACHI. MUNIR AHMED
ABDUL RAUF AWAN
626
58
684
626
58
684
195
MUNIR AHMED GALLI / MOHALLAH EID GAH, SHAKARDARAH, ATTOCK. JAVED IQBAL
37101-1677189-1
GHULAM MUSTAFA
629
103
732
629
103
732
196
JAVED IQBAL HOUSE NO 100-BI, UMER BLOCK, ABBASIA TOWN, RAHIMYAR KHAN. AMJAD ALI
31303-1422372-5
MUHAMMAD IQBAL
566
92
658
566
92
658
197
AMJAD ALI SAMIJA BAD NO 1 MUHALLA SAHREEF PURA MULTAN MULTAN.
36302-5609756-9
JAMAT ALI
549
49
598
549
49
598
198
ABDUL HAFEEZ ATHER HOUSE NO 30/376, SHAH SYEDAN CHURCH ROAD NEAR GOVT SARDAR BEGUM HOSPITAL, SIALKOT.
ABDUL HAFEEZ ATHER
34603-2256002-7
CHAUDHARY FATEH MUHAMMAD
683
86
769
683
86
769
93
(Rupees '000')
MEHDI RAZA 35202-3044887-3 MUHAMMAD YASEEN 1,121 175 1,296 1,121 175 -
Annexure - 1
1,296
S.No.
NIC No.
199
MEHDI RAZA HOUSE NO 17, COLLEGE BLOCK, ALLAMA IQBAL TOWN, LAHORE. MUHAMMAD ARSHAD NADEEM 36103-1589886-1 MUHAMMAD SADIQ 1,020 167 1,187 1,020 167
200
MUHAMMAD ARSHAD NADEEM HOUSE 157, AL-HAMD GARDENS EST 2, NEAR SAGIAN PULL, SHAHDARA, LAHORE. MAZHAR MEHMOOD 42101-6331005-3 SH RASOOL MEHMOODI 1,656 271 1,927 1,656
1,187
201
MAZHAR MEHMOOD HOUSE # B-194, BLOCK-6, GULSHAN-E-IQBAL, KARACHI. MUHAMMAD IRFAN 42101-9055092-9 MUKHTAR AHMED 653 108 761 653
271
1,927
202
MUHAMMAD IRFAN HOUSE R-375, SECTOR 14-B, SHADMAN TOWN, NORTH KARACHI, KARACHI. KANWAR ABID MAJEED 42201-8485110-3 KANWAR ABDUL MAJEED 626 100 726
108
761
203
KANWAR ABID MAJEED A-205/8, BLOCK 13-D/3, GULSHAN-E-IQBAL, KARACHI. SYED MUHAMMAD RAZI 42101-9701338-1 SYED MUHAMMAD SAEED 839 138 977
626
100
726
204
SYED MUHAMMAD RAZI HOUSE NO B-1, BLOCK-T, NORTH NAZIMABAD, KARACHI. SHAFIQ UR REHMAN KHAN 42201-6157756-3 ABDUL REHMAN KHAN 890 147 -
839
138
977
205
SHAFIQ UR REHMAN KHAN FLAT -A-5, PLOT-3, AL HAYAT SQUARE, AL HILAL COOPERATIVE HOUSING SOCIETY GULSHAN-E-IQBAL, KARACHI. MUHAMMAD FAHIM 36302-0213880-7 MALIK HAYAT ULLAH 793 129
1,037
890
147
1,037
206
MUHAMMAD FAHIM SABZI MANDI ROAD, HOUSE NO 3707/1, MUHALLA HASSAN PARWANA COLONY, MULTAN. 42301-3616434-9 ABBAS BHAI 576
922
793
129
922
207
MOIZ MOIZ FLAT NO. 102,103, SAMAR CLASSICS, M.A. JINNAH ROAD, PAKISTAN CHOWK, KARACHI. ARIF MEHMOOD 42101-7638393-5 MEHMOOD HASAN
94
670
576
94
670
208
ARIF MEHMOOD HOUSE L-73, SECTOR 11/C-1, SIR SYED TOWN, NORTH KARACHI, KARACHI. MUHAMMAD TASLEEM QAMER 36302-5540975-1 MEHARBAN QAMER
580
50
630
580
50
630
209
MUHAMMAD TASLEEM QAMER GALI BALDOZER WALI, MASOOM SHAH ROAD, ST NO 1, MUHALA WRITERS COLONY, MULTAN. MUHAMMAD FARID AWAN 13101-0903290-7
600
53
653
600
53
653
210
MUHAMMAD FARID AWAN BEARR PO BOX, PUBLIC SCHOOL, ABBOTABAD. SYED IFTIKHAR HUSSAIN JAFEERY 42201-7905337-1
ATTA MUHAMMAD AWAN
554
99
653
554
99
653
211
SYED IFTIKHAR HUSSAIN JAFEERY HOUSE B-507, B-AREA, MALIR TOWN, KARACHI. MOAZZAM ALI 38403-9755919-9
SYED MAZHAR HUSSAIN JAFFERY
677
129
806
677
129
806
212
MOAZZAM ALI HOUSE NO.261, BLOCK-A, SATELLITE TOWN, SARGODHA. HABIB UR REHMAN QUERSHI
MIAN ZAHOOR AHMAD
519
84
603
519
84
603
213
HABIB UR REHMAN QUERSHI MUMTAZ STREET, HOUSE NO 18-B, MOHALLAH HABIB ULLAH RAOD, GHARI SHAHU, LAHORE. SHAHZAD ALI
35202-0145432-1
ABDUL GHAFOOR QURESHI
648
57
705
648
57
705
214
SHAHZAD ALI P-3374, MOH. MANSOORABAD, NEAR AL-MAKKAH GENERAL STORE, FAISALABAD. MUHAMMAD RAFEY
33100-0794405-3
SUBHAN ALI
606
54
660
606
54
660
215
MUHAMMAD RAFEY HOUSE NO. B-81, KHAYABAN-E-BADAR, 21ST STREET, PHASE-VI, D.H.A., KARACHI. MUHAMMAD RAZA
42000-6860181-5
JAMEEL UR REHMAN
503
44
547
503
44
547
Annual Report 2011
216
MUHAMMAD RAZA FLAT NO B-4, 2ND FLOOR, AMAN HEIGHTS, PATEL PARA, KARACHI.
42201-0773264-3
BARKAT ALI
606
98
704
606
98
704
(Rupees '000')
SALEEM ALI 42301-0891930-5 JUMMA SALAH MUHAMMAD 877 143 1,020 877 143
Annual Report 2011

-
Annexure - 1
S.No.
NIC No.
Total
1,020
217
SALEEM ALI FLAT NO 4, ALI ASGHER HOUSE, 2ND FLOOR, SOLDIER BAZAR NO. 2, KARACHI. MANZOOR AHMED AWAN 38403-5864814-3 BADAR UD DIN 816 132 948 816 132
218
MANZOOR AHMED AWAN HOUSE NO 270, STREET NO. 24, GULZAR-E-QUAID, RAWALPINDI. MUHAMMAD JAMIL KHAN 37405-0640712-1 MUNSHI KHAN 870 143 1,013 870
948
219
MUHAMMAD JAMIL KHAN HOUSE 98-A, RAHAT COLONY, KAMALABAD, RAWALPINDI. KHALEEQ UR REHMAN / ATIQ UR REHMAN / SHAFIQUE UR REHMAN MUHAMMAD IMRAN SHAIKH 41303-1197998-1 MUHAMMAD AHSAN SHAIKH 799 68 867 35202-9256360-1 35202-0196327-7 35202-5624983-5 MUHAMMAD RAFIQ QURESHI 510 73 583
143
1,013
220
RAVI PLASTIC INDUSTRIES (PVT) LTD PLOT NO. 1174-1175, USMAN STREET, NEAR BABA RAFAI DARBAR, OPPOSITE CHOHAN ROAD, STOP BUND ROAD, LAHORE.
510
73
583
221
MUHAMMAD IMRAN SHAIKH HOUSE NO A/116-34-197, HIRABAD, HYDERABAD. NAZEER AHMAD 36302-6188593-3 KABIR KHAN 610 56 -
799
68
867
222
NAZEER AHMAD HOUSE NO. 09, NEAR IQBAL COLLEGE, SHAMSHABAD COLONY, MULTAN. MUHAMMAD YOUSUF 42201-8450371-9 JALAL UDDIN 631 56
666
610
56
666
223
MUHAMMAD YOUSUF HOUSE NO. A-21, MADINA COLONY, 13-D, GULSHAN-E-IQBAL, KARACHI. MUHAMMAD ASLAM AWAIS 35201-1374578-5 MUHAMMAD BASHIR 629
687
631
56
687
224
MUHAMMAD ASLAM AWAIS 255-B, SHALIMAR HOUSING SCHEME, BAGHBAN PURA, LAHORE. MOHAMMAD ASLAM 42101-8817989-1 MOHAMMAD YAR
49
678
629
49
678
225
MOHAMMAD ASLAM HOUSE NO. 86/10, ORANGABAD, CHOOTA MEADAN, NAZIMABAD NO.3, KARACHI. MUBEEN AHMED QURESHI 42201-0549702-3 SHAMIM AHMED QURESHI
561
107
668
561
107
668
226
MUBEEN AHMED QURESHI HOUSE # E/30, AREA-E, KORANGI # 5 3/4 (PONAY CHAY), KARACHI. FAISAL SOHAIL 42101-1602839-5
603
99
702
603
99
702
227
FAISAL SOHAIL HOUSE NO. R-301, SECTOR NO. 14/B, SHADMAN TOWN, NORTH KARACHI, KARACHI. MUHAMMAD ATHAR LODHI 31202-8606179-7
MUHAMMAD ASLAM
623
118
741
623
118
741
228
MUHAMMAD ATHAR LODHI HOUSE NO. 17-D, OFFICER COLONY, BAHAWALPUR. SYED ZULFIQAR HAIDER NAQVI 42101-1895817-9
ABDUL GHAFFAR
720
62
782
720
62
782
229
SYED ZULFIQAR HAIDER NAQVI HOUSE NO. R-633, SECTOR 11-C/1, NORTH KARACHI, KARACHI. ALTAF HUSSAIN
SYED ALI MUKHTAR NAQVI
805
131
936
805
131
936
230
ALTAF HUSSAIN HOUSE # M-2EB 15/18 A, SINDH MAHAL STREET # 29, BLOCK-B, AKBER ROAD, SHER SHAH, KARACHI. SHAHID BASHIR
42401-0976141-9
GUL HASSAN
1,609
263
1,872
1,609
263
1,872
231
SHAHID BASHIR HOUSE NO. 113-C, KHAYABAN-E-BAHRIA, PHASE-VII, DEFENCE, KARACHI. MUHAMMAD FAROOQ
42301-8448099-1
SHEIKH BASHIR
1,050
162
1,212
1,050
162
1,212
232
MUHAMMAD FAROOQ FLAT NO. 2-A, 2ND FLOOR, WAHEED CENTRE, URDU BAZAR, KARACHI.
42301-2012152-9
ABDUL SATAAR
601
93
694
601
93
694
233
FAISAL MUHAMMAD IBRAHIM FLAT NO. 21, BLOCK-B, 6TH FLOOR, GIZRA ARCADE, GARDEN WEST, KARACHI.
FAISAL MUHAMMAD IBRAHIM
42000-0557548-7
MUHAMMAD IBRAHIM
1,189
194
1,383
1,189
194
1,383
234
TARIQ ISHTIAQ KHAN HOUSE NO. B-52, BANGLOW TOWN, KARACHI.
TARIQ ISHTIAQ KHAN
42201-3457198-1
ISHTIAQ RASOOL KHAN
904
155
1,059
904
155
1,059
95
(Rupees '000')
35202-2835081-9 MUHAMMAD RAFI 875 663 1,538 875 663 -
Annexure - 1
1,538
S.No.
NIC No.
235
MOHAMMAD KHURRAM MOHAMMAD KHURRAM 32 H-2, JOHAR TOWN, NEAR STAR BAKERS AND SWEETS, JOHAR TOWN, LAHORE. NADEEM YASEEN SHANAWAR 35102-5630501-7 MUHAMMAD YASEEN 744 1,376 2,120 744 1,376
236
NADEEM YASEEN SHANAWAR HOUSE NO. 19 S 93 STREET MIAN SKENDAR MAIN BAZAR ROAD, KOT KASUR, KASUR. NASIR ALI 36302-0286605-9 BAGH ALI 509 40 549 509
2,120
237
NASIR ALI HOUSE # 35 T BLOCK ST # C, NEW MULTAN, MULTAN. MUHAMMAD YOUSUF 42501-5145261-1 GHULAM RASOOL 594 97 691 594
40
549
238
MUHAMMAD YOUSUF HOUSE A-28, GULISTAN SOCIETY, KARACHI. MUHAMMAD SALEEM 42101-1826752-5 MUHAMMAD ASHRAF 535 86 621
97
691
239
MUHAMMAD SALEEM HOUSE NO. 1384/B MOHALLAH 5 NISHTER COLONY, GULBAHAR NAZIMABAD, KARACHI. ALI HASSAN 42201-0452201-9 LAL MUHAMMAD 1,018 164 1,182
535
86
621
240
ALI HASSAN PLOT # 449, 1ST FLOOR, SECTOR 51-B, KORANGI # 6, KARACHI. MUHAMMAD RAMZAN 34501-1058929-1 NAZEER AHMED 905 80 -
1,018
164
1,182
241
MUHAMMAD RAMZAN HOUSE NO. MIIE-A/831, STREET-37, JINNAH ROAD, BLOCK-C, SHER SHAH, KARACHI. MUHAMMAD ASHRAF 42201-1604084-7 SALEH MUHAMMAD 1,035 170
985
905
80
985
242
MUHAMMAD ASHRAF A-502, PANAMA CENTRE, BLOCK 13-D, GULSHAN-E-IQBAL, KARACHI. 42301-0300274-1 BASHIR AHMED 509
1,205
1,035
170
1,205
243
AHSAN ULLAH SALEEMI AHSAN ULLAH SALEEMI HOUSE # 530, SECTOR-C, STREET # 8, REHMAN COLONY, KARACHI. MUHAMMAD TAHIR 42201-8096499-1 IBRAHIM
82
591
509
82
591
244
MUHAMMAD TAHIR FLAT NO. C-402, CRESCENT VIEW, BLOCK-13, GULISTAN-E-JOHAR, KARACHI. MUHAMMAD JAMAL 42201-6545062-3 LATIF UR REHMAN
653
108
761
653
108
761
245
MUHAMMAD JAMAL REHMAN BUILDING, FLAT NO. LSB-6, STREET NO. 4, BLOCK-10, GULSHAN-E-IQBAL, KARACHI. SHEIKH MUHAMMAD ANWER 37401-1503210-5
736
956
1,692
736
956
1,692
246
SHEIKH MUHAMMAD ANWER HOUSE NO 230, AMEER BAZ, OPOSITE MUHAMMADI MOSQUE, GUJAR KHAN. MUJEEB UNNISA 42401-7252719-0
SHEIKH ABDUL MAJEED
646
658
1,304
646
658
1,304
247
MUJEEB UNNISA FLAT NO B-17, BLOCK-J, TAQI CENTER , NORTHNAZIMABAD, KARACHI. MUHAMMAD YAMEEN 42301-2109142-7
MUHAMMAD SALEEM
528
654
1,182
528
654
1,182
248
MUHAMMAD YAMEEN FLAT NO.5, GHOSIA CENTRE, GIZRI, KARACHI. WAQAR AHMED
NASEER AHMED
976
569
1,545
976
569
1,545
249
WAQAR AHMED HOUSE NO. KMC-537-A, SECTOR 14/E, AKBAR SHAHEED CHOWK, ORANGI TOWN, KARACHI. CHAUDHRY SAIF ULLAH
42401-3734675-3
ASHRAF KHAN
768
490
1,258
768
490
1,258
250
CHAUDHRY SAIF ULLAH HOUSE NO. 5, HAQ LANE MUHALLA NEW LALA ZAR, ADYALA ROAD, RAWALPINDI. IMMAD ZAFAR
37405-2728189-7
CHAUDHRY MUHAMMAD SIDDIQUE 34101-2528289-7 MUHAMMAD ANWAR
696
330
1,026
696
330
1,026
251
ALI TRADERS (PROP.IMMAD ZAFAR) GHALLA MANDI GHAKKAR MANDI, GUJRANWALA. FEROZ KHAN
2,098
396
2,494
2,098
396
2,494
Annual Report 2011
252
FEROZ KHAN HOUSE # 104, SECTOR 131, TOWNSHIP, LAHORE.
35202-1141339-7
JUMA KHAN
654
647
1,301
654
647
1,301
(Rupees '000')
MUHAMMAD NADEEM AHMED BUTT 34603-2172177-9 MUHAMMAD SHARIF 1,080 320 1,400 1,080 180
Annual Report 2011

-
Annexure - 1
S.No.
NIC No.
Total
1,260
253
M/S PAK MOTORS & RENT A CAR 2 ALLAMA IQBAL CHOWK, SIALKOT, PUNJAB. MUHAMMAD SAQIB 37405-3400269-9 JAMIL UR REHMAN 935 26 961 935 -
254
FUEL POWER CNG ASGHAR MALL ROAD, NEAR NAZ CINEMA, RAWALPINDI. ARIF 15602-1186379-1 SHAUKAT ALI 550 210 760 550
935
255
ARIF MOHALLA, LANDAYKAS, MINGORA, TEHSIL/DISTT SWAT, N.W.F.P. AZMAT BHATTI 422016-810220-3 BASHIR AHMED BHATTI 573 573
210
760
256
AZMAT BHATTI (DECEASED) 25/B, SHAD BAGH HOUSING SOCIETY, MALIR HALT, KARACHI. KHAWAJA TARIQ FAROOQ 35202-1548702-3 KHAWAJA FAROOQ SADIQ 557 557
573
573
257
KHAWAJA TARIQ FAROOQ (DECEASED) 403, EME SECTOR D.H.A MULTAN ROAD, LAHORE. JAVED ASGHAR HASSAN IKRAM QAZI MOEED ALI SHAHZAD KOUSER CHEEMA CH. FAROOQ A. CHEEMA IMRAN FAROOQ CHEEMA M. YOUNUS M. SHAHZAD YOUNUS 42101-1782295-1 MUHAMMAD HUBAIR 35202-6559478-5 35202-9705130-3 MAULA BAKHSH MUHAMMAD YOUNUS 1,795 34603-4526639-7 34603-6623013-5 34603-1792850-9 CH. MIAN KHAN CHEEMA CH. MIAN KHAN CHEEMA CH. FAROOQ A. CHEEMA 11,999 4,220 35201-1458037-1 35202-2534160-1 35202-6634158-3 M ASGHER SHEIKH IKRAM-UL-HAQ QAZI FARHAT ALI 2,791 4,221 -
557
557
258
SYNERGY CORPORATION SUIT # 15, 7TH FLOOR, CENTRAL PLAZA, CIVIC CENTRE, NEW GARDEN TOWN, LAHORE.
7,012
2,791
4,221
7,012
259
RECTO SPORTS DASKA ROAD, SIALKOT-6.
16,219
11,999
4,220
16,219
260
TAIBA MODEL JEWELLERS SV-8-5-4/1, UMER STREET, SUNEHRI MANDI, OLD ANARKALI ROAD, LAHORE.
7,280
9,075
1,795
7,280
9,075
261
ASIF ENTERPRISES MUHAMMAD TAHIR R-453, SECTOR 14-B, SHADMAN TOWN, NORTH KARACHI, KARACHI-75850. ARIF GULZAR ASAD GULZAR FEROZ GULZAR MUNEER AHMED TANVEER AHMED WASEEM AHMED ABDUL WAHEED RASHID AHMED ZAKARIA BEGUM MUNEER AHMED TANVEER AHMED WASEEM AHMED ABDUL WAHEED RASHID AHMED ZAKARIA BEGUM MUNEER AHMED TANVEER AHMED WASEEM AHMED ABDUL WAHEED RASHID AHMED ZAKARIA BEGUM MUNEER AHMED TANVEER AHMED WASEEM AHMED ABDUL WAHEED RASHID AHMED ZAKARIA BEGUM SYED MEHMOOD UL HASSAN RIZVI MUHAMMAD QASIM QURESHI 36602-0930881-7 36602-0945927-5 36602-1980003-3 36602-0930877-3 36602-1700981-3 36602-0893425-0 36602-0930881-7 36602-0945927-5 36602-1980003-3 36602-0930877-3 36602-1700981-3 36602-0893425-0 36302-0334318-9 37405-5451824-3 36602-0930881-7 36602-0945927-5 36602-1980003-3 36602-0930877-3 36602-1700981-3 36602-0893425-0 36602-0930881-7 36602-0945927-5 36602-1980003-3 36602-0930877-3 36602-1700981-3 36602-0893425-0 35201-4424476-7 35201-7622962-9 35201-3511954-1 GULZAR MUHAMMAD ARIF GULZAR ARIF GULZAR SHABEER AHMED SHABEER AHMED BASHEER AHMED ABDUL MAJEED MUHAMMAD SIDDIQUE ABDUL MAJEED SHABEER AHMED SHABEER AHMED BASHEER AHMED ABDUL MAJEED MUHAMMAD SIDDIQUE ABDUL MAJEED SHABEER AHMED SHABEER AHMED BASHEER AHMED ABDUL MAJEED MUHAMMAD SIDDIQUE ABDUL MAJEED SHABEER AHMED SHABEER AHMED BASHEER AHMED ABDUL MAJEED MUHAMMAD SIDDIQUE ABDUL MAJEED SYED ABDUL HASSAN RIZVI BASHIR AHMED
588
588
588
588
262
GALAXY TEXTILE MILLS 7-D-1, GULBERG-III, LAHORE.
140,178
56,010
196,188
56,010
56,010
263
ARAIN MILLS LIMITED 61, ABDALI ROAD, MULTAN 47, QASIM ROAD, MULTAN.
7,602
7,602
7,602
7,602
264
8,853
8,853
8,853
8,853
265
7,200
27,269
34,469
7,200
27,269
34,469
266
SULEMAN SPINNING MILLS 61, ABDALI ROAD, MULTAN 47, QASIM ROAD, MULTAN.
6,234
38,367
44,601
6,234
38,367
44,601
267
YAKTA TRAVELS & TOURS UNIT 5, 2ND FLOOR, SARDAR PLAZA, 6TH ROAD STOP, MURREE ROAD, RAWALPINDI.
2,848
1,672
4,520
1,672
1,672
97
(Rupees '000')
ABDUL QADIR JANGDA 42301-5862447-7 ABDUL RAZZAQ 101,551 11,821 5,900 119,272 2,194
Annexure - 1
Outstanding Liabilities Before Adjustments Fathers / Husbands Name Principal Total Accrued Mark-up Others Principal written off Interest/ Mark-up written off
-
S.No.
NIC No.
Other Financial Relief
Total
2,194
268
BUKHARI COMMERCIAL EXPORTERS ATTIQUE MARKET, 3RD FLOOR, BOMBAY BAZAR, KHARADAR, KARACHI. ANTHONY RUSTIN LYNN MARGARET ISOBEL S.M.GHALIB CAROLE LINDA FLORIAN ZENNER MANUEL MAKKI SALMAN RAHIM RASHID MIRZA TASEER AHMED SHEIKH MUHAMMAD YASIN NISAR AHMED SHAFAY HUSSAIN MUHAMMAD MEHBOOB HAMID NAZIR HASAN MAHMOOD AHMED MAHMOOD LIAQAT MAHMOOD AISHA CHAUDHRY QASIM CHAUDHRY SARAH LEGHARI FATIMA HAMEED KAMAL ALAM KHALID HAMID KHAN RAFIQUR REHMAN SIKANDAR HAMID SHAHID KARIM MIAN NAZIR AHMED PERACHA QAMAR NAZIR PERACHA FARIHA NAZIR PERACHA CYMA NAZIR PERACHA TAYMUR ALAM PARACHA HASAN MAHMOOD HAFIZ LAEEQ AHMED NUSRAT YAR AHMED SAEED IQBAL CHAUDHRY MUHAMMAD ZAHID AAMER SAEED REHMAN GHANI FIRASAT ALI BASHIR A CHOUDHRY BABAR SULTAN AZRA BABAR NAVEED NAIYAR HUSSAIN 34101-4247219-1 34101-3479860-8 42301-4883876-9 42301-4241881-7 35201-1444666-5 33102-1817745-5 42301-6373132-9 43201-5250481-9 42301-3598846-5 42301-1067986-1 274-42-430485 517-48-043072 274-50-430486 517-90-043074 35201-1702969-3 212-69-087723 270-67-545943 AZIZUDDIN PERACHA NAZIR AHMED PERACHA MIAN NAZIR AHMED PERACHA MIAN NAZIR AHMED PERACHA MIAN NAZIR AHMED PARACHA MOHAMMAD YAMEEN KHURSHEED AHMED IFTIKHAR AHMED CHAUDHRY MUHAMMAD IQBAL CHAUDHRY MUHAMMAD SHARIF ANWER SAEED AMJAD HUSSAIN FARMAN ALI KARAM ELAHI SULTAN BABAR NAIYAR HUSSAIN 244-48-140963 277-50-106041 271-37-049402 277-48-347640 517-49-191524 AKHTAR ALAM KHAN ABDUL HAMID KHAN KHALILUR REHMAN KHAN ABDUL HAMID KHAN MOHAMMAD KARIN 13,486 35202-9061529-5 35201-2550198-3 35201-7907619-7 35202-2433151-6 35202-2556962-5 35201-2295859-4 35201-1366941-8 LIAQAT MAHMOOD LIAQAT MAHMOOD CH. SULTAN MAHMOOD KARAMATULLAH CHAUDHRY KARAMATULLAH CHAUDHRY AHMED MAHMOOD FAROOQ HAMEED 24,819 6,664 35202-4255471-1 35202-2324124-9 35201-7973297-7 CH. SHUJAT HUSSAIN ABDUL HAMEED CHUADHRY NAZIR AHMED 103,206 27,932 131,138 37401-1402647-9 37405-0372117-5 37405-0433772-3 MUHAMMAD KHALID MARGHOOB SHEIKH QAMAR DIN MEHARBAN KHAN 1,378 1,378 NON-RESIDENT NON-RESIDENT 35201-1597411-3 NON-RESIDENT NON-RESIDENT NON-RESIDENT NON-RESIDENT 42301-5026134-7 SYDNEY RUSTIN WILLIAM JOHN ALEXANDER SARDAR MUHAMMAD AKRAM YAHIA A. ADRIS TIMM ZENNER ALIAN DR. S.A. RAHIM MUHAMMAD IFTIKHAR MIRZA 30,867 3,153 34,020 3,153
269
SOUTHERN ELECTRIC POWER COMPANY LTD. NO.38, FIRST STREET, F-6/3, ISLAMABAD.
3,153
270
RAWAT CNG KALAR ROAD, OPPOSITE WAPDA OFFICE, TEHSIL L RAWAT, RAWALPINDI.
1,378
1,378
271
KUNJAH TEXTILE MILLS LIMITED 20/E-1 (C), GULGERB-III, LAHORE.
27,932
27,932
272
PRIME DAIRIES LTD 38, EMPRESS ROAD, LAHORE.
19,829 51,312
6,664
19,829
26,493
273
SECCO PAK (PVT) LTD. 18 KM. LAHORE SHEIKHUPURA ROAD, LAHORE.
13,486
13,486
13,486
274
SHAHPUR TEXTILE MILLS (PVT) LTD HOUSE NO.77-A, ST.NO.16, CALVERY GROUND, LAHORE CANTT.
18,965
2,337
21,302
7,215
2,337
9,552
275
INVEST CAPITAL INVESTMENT BANK LIMITED (FORMERLY AL-ZAMIN LEASING) C3C,12TH LANE , ITTEHAD COMMERCIAL, PHASE-II EXT., D.H.A KARACHI"
48,733
10,877
59,610
10,877
10,877
276
ADIL CERAMICS 10 KM LAHORE SIDE, GT ROAD, GUJRANWALA.
3,669
3,669
3,669
3,669
277
ANZ TELECOM HOUSE NO. 29/2, STREET NO. 29, PHASE-V, D.H.A., KARACHI. SYED IFTIKHAR ALI
1,329
1,329
1,329
1,329
278
AZIZ BROTHERS 41 D, INDUSTRIAL ESTATE, MULTAN. SHEIKH AHMAD DAWOOD
36302-6231997-3
SYED ANWAR ALI BUKHARI
934
934
934
934
Annual Report 2011
279
DAWOOD MILLS STORE 46 BRANDRETH ROAD, LAHORE.
35201-8843168-7
SHEIKH DAWOOD AHMED
1,142
1,142
1,142
1,142
Annual Report 2011
Annexure - 1
MUHAMMAD IMRAN DAWOOD SHEIKH AHMAD DAWOOD SHAHID RAZA 34603-7839428-5 GHULMAN RASOOL 1,161 1,161 35201-4903314-3 274-88-305116 SHEIKH DAWOOD AHMAD SHEIKH DAWOOD AHMAD 59,549 4,205 63,754
(Rupees '000')
Outstanding Liabilities Before Adjustments Fathers / Husbands Name Principal Total Accrued Mark-up Others
-
S.No.
NIC No.
Principal written off
Interest/ Mark-up written off

4,205

-
Total
4,205
280
DAWOOD SPINNING MILLS LIMITED 46 BRANDRETH ROAD, LAHORE.
281
GRACE SHOES RAILWAY ROAD, CHOWK ALLAMA IQBAL, SIALKOT. MUHAMMAD ILYAS 61101-5615049-9 ADBUL AZIZ 334 41 280
1,161
1,161
282
ISLAMABAD PHOTO SERVICE & KODAK EXPRESS LAB SHOP NO. 24-B, BLOCK 12-C, JINNAH SUPER MARKET, F-7 MARKAZ, ISLAMABAD. MUSTANSAR HAFEEZ 35201-1681739-1 HAFEEZ ULLAH KHAN 2,271
655
334
41
280
655
283
MAHRAB PIPE INDUSTRIES KALA KHATAI ROAD JAVEED PARK, OPP MADRAS -TUL-BINAT, SHAHDARA, LAHORE. SYED ETHESHAM HAIDER ZAIDI 35202-4627086-3 SYED HAMEED ASGHAR ZAIDI 518
2,271
2,196
2,196
284
MANZOOR & SONS 252/A-II, BLOCK-5, TOWNSHIP, LAHORE. SYED AZIZ ANWAR NADEEM AKHTAR ABDUL SAMI 33100-0595318-7 MUHAMMAD SHARIF 36302-8884357-1 36302-7868986-5 SYED ANWAR ALI BUKHARI SYED ANWAR ALI BUKHARI
873
1,391
518
873
1,391
285
SABRI INDUSTRIES 144C FATIMA JINNAH S.I.E, DISTRICT SIALKOT.
10,000
537
10,537
537
537
286
SAMI SONS WEAVING FACTORY P-2 NEW CIVIL LINES, GORAYA ROAD, FAISALABAD. NARGIS MUSTAFA NAZIA ALI SIRAJUDDIN 41306-3875860-3 KHAN GUL 34603-1624780-0 34603-9457984-2
3,928
3,928
3,928
3,928
287
SHAFY SPORTSWEAR HOUSE NO 31/5, ZAFAR ALI ROAD, SIALKOT CANTT
GHULAM MUSTAFA CH ZULFIQAR ALI CH
45,000
2,305
47,305
2,243
2,243
288
SHAHEEN PETROLEUM SERVICE MAIN SHAH MAKKI ROAD, QACHA QILA, HYDERABAD TARIQ HAMEED PURI 33100-2210978-7
21,300
6,634
27,934
3,300
6,634
9,934
289
T.P CORPORATION P-15, MONGOMRY BAZAR, FAISALABAD SHEIKH SOHAIL IBRAHIM 42000-5183618-7
ABDUL HAMEED PURI
12,500
2,681
15,181
2,158
2,158
290
SHAIKH INTERNATIONAL MR 7/1, VIRJEE STREET, JODIA BAZAR, KARACHI.
SHEIKH MUHAMMAD IBRAHIM
1,012
346
1,358
497
346
843
863,572
304,519 26,882 1,194,973
254,056
294,066
20,982
569,104
99
Moving ahead with focus

Consolidated Financial Statements
For the year ended December 31, 2011
We have audited the annexed consolidated financial statements comprising consolidated statement of financial position of NIB Bank Limited as at 31 December 2011 and the related consolidated profit and loss account, consolidated statement of comprehensive income, consolidated cash flow statement and consolidated statement of changes in equity together with the notes forming part thereof, for the year then ended. These financial statements include unaudited certified returns from the branches, except for 28 branches, which have been audited by us. These financial statements are responsibility of the Banks management. Our responsibility is to express our opinion on these financial statements based on our audit. We conducted our audit in accordance with the auditing standards as applicable in Pakistan. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the above said statements are free of any material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the above said statements. An audit also includes assessing the accounting policies and significant estimates made by management, as well as, evaluating the overall presentation of the above said statements. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the consolidated financial statements present fairly the financial position of NIB Bank Limited as at 31 December 2011 and the results of its operations, its cash flows and changes in equity for the year then ended in accordance with the approved accounting standards as applicable in Pakistan.
KPMG Taseer Hadi & Co. Chartered Accountants Amir Jamil Abbasi
Annual Report 2011
103
NIB Bank Limited Consolidated Statement of Financial Position As at December 31, 2011
Note 2011 (Rupees '000') ASSETS Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Operating fixed assets Intangible assets Deferred tax assets - net Other assets LIABILITIES Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Liabilities against assets subject to finance lease Deferred tax liabilities Other liabilities 17 18 19 20 1,738,422 47,382,031 85,472,247 3,994,400 2,574,241 141,161,341 NET ASSETS REPRESENTED BY : Share capital Reserves Discount on issue of shares Accumulated loss Total equity attributable to the equity holders of the Bank Non-controlling interest Advance against proposed rights issue Deficit on revaluation of assets - net 23 22 103,028,512 218,276 (45,769,623) (43,333,909) 14,143,256 9 14,143,265 14,143,265 (479,595) 13,663,670 CONTINGENCIES AND COMMITMENTS 24 40,437,271 8,464,894 (41,009,961) 7,892,204 7,892,204 6,352,360 14,244,564 (359,624) 13,884,940 13,663,670 1,335,493 42,361,934 99,111,741 3,996,000 3,866,958 150,672,126 13,884,940 8 9 10 11 12 13 14 15 16 7,969,044 1,486,560 14,666,918 47,786,041 60,861,513 2,722,863 3,785,755 10,958,166 4,588,151 154,825,011 8,836,474 2,952,593 6,429,166 50,209,083 74,583,584 2,751,703 4,147,736 9,395,264 5,251,463 164,557,066 2010
21
The annexed notes from 1 to 43 and annexure - 1 form an integral part of these consolidated financial statements.
Badar Kazmi

Chairman / Director
Tejpal Singh Hora

Director

Director
104
Annual Report 2011
NIB Bank Limited Consolidated Profit and Loss Account For the year ended December 31, 2011
Note 2011 2010
(Rupees '000')
Mark-up / Return / Interest earned Mark-up / Return / Interest expensed Net Mark-up / Interest Income Provision against non-performing loans and advances Provision for diminution in the value of investments Bad debts written off directly Net Mark-up / Interest income after provisions NON MARK-UP / INTEREST INCOME Fee, commission and brokerage income Dividend income Income from dealing in foreign currencies Gain on sale of securities Unrealized loss on revaluation of investments classified as held-for-trading Other income Total Non Mark-up / Interest income NON MARK-UP / INTEREST EXPENSES Administrative expenses Other provisions / write offs Other charges Workers welfare fund Total Non Mark-up / Interest expense Share of income of associates Extraordinary / Unusual items PROFIT / (LOSS) BEFORE TAXATION Taxation - Current - Prior years - Deferred PROFIT / (LOSS) AFTER TAXATION Accumulated loss brought forward ACCUMULATED LOSS CARRIED FORWARD Profit / (Loss) attributable to: Equity shareholders of the Bank Non-controlling interest Basic / diluted Loss per share (Rupees) 32 25 26 12.5 11.13 14,250,121 12,155,613 2,094,508 2,355,074 178,913 15,802 2,549,789 (455,281) 1,024,307 137,055 526,577 273,144 (7,053) 22,854 1,976,884 1,521,603 4,823,582 200,912 42,497 (2,101) 5,064,890 51,278 (3,492,009) 202,619 30,658 (1,657,864) (1,424,587) (2,067,422) (41,009,961) (43,077,383) (2,067,422) (2,067,422) (0.34) 16,482,767 13,467,526 3,015,241 9,872,524 115,134 53,359 10,041,017 (7,025,776) 977,919 150,517 469,449 307,541 28,348 1,933,774 (5,092,002) 7,055,824 158,359 121,918 859 7,336,960 339,960 (12,089,002) 228,733 385,655 (2,996,630) (2,382,242) (9,706,760) (7,081,729) (16,788,489) (9,706,760) (9,706,760) (2.40)
27 28
29 30
11.11.1
31 31 31
Badar Kazmi

Chairman / Director
Tejpal Singh Hora

Director

Director
Annual Report 2011
105
NIB Bank Limited Consolidated Statement of Comprehensive Income For the year ended December 31, 2011
2011 2010
(Rupees '000')
Profit / (Loss) after taxation for the year Other comprehensive income Total comprehensive income for the year
(2,067,422) (2,067,422)
(9,706,760) (9,706,760)
Surplus / deficit on revaluation of Available - for-Sale securities is presented under a separate head below equity as Surplus / deficit on revaluation of assets in accordance with the requirements specified by the Companies Ordinance, 1984, and the State Bank of Pakistan vide its BSD Circular 20 dated August 4, 2000 and BSD Circular 10 dated July 13, 2004.
Badar Kazmi

Chairman / Director
Tejpal Singh Hora

Director

Director
106
Annual Report 2011
NIB Bank Limited Consolidated Statement of Changes in Equity For the year ended December 31, 2011
Attributable to ordinary shareholders of the Bank
Reserves Capital Share Note capital Discount on Share issue of premium shares Revenue
Statutory General Accumulated Non reserve reserve (loss) Sub Total Controlling (a) Interest (Rupees '000')
Total
Balance as at December 31, 2009 Total comprehensive income / (loss) for the year Loss after taxation for the year Goodwill adjustment Balance as at December 31, 2010 Total comprehensive income / (loss) for the year Loss after taxation for the year Non-controlling interest Transaction with owners, recorded directly in equity Issuance of right shares during the year Discount on issue of right shares Share premium adjusted against share discount Right shares issue cost Balance as at December 31, 2011 14.2
40,437,271
8,246,618
212,804
5,472
(7,081,729)
41,820,436
41,820,436
40,437,271
8,246,618
212,804
5,472
(9,706,760)
(9,706,760)
(9,706,760) (24,221,472) 7,892,204
(24,221,472) (24,221,472) (41,009,961) 7,892,204
(2,067,422)
(2,067,422)
(2,067,422) 9
62,591,241 (54,016,241)
212,804
5,472
(256,526) (256,526) (43,333,909)
62,591,241 (54,016,241) (256,526) 8,318,474 14,143,256
62,591,241 (54,016,241) (256,526) 8,318,474 14,143,265
8,246,618 (8,246,618) 62,591,241 (45,769,623) (8,246,618) 103,028,512 (45,769,623)
(a) This represents reserve created under section 21(1)(a) of the Banking Companies Ordinance 1962. The annexed notes from 1 to 43 and annexure - 1 form an integral part of these consolidated financial statements.
Badar Kazmi

Chairman / Director
Tejpal Singh Hora

Director

Director
Annual Report 2011
107
NIB Bank Limited Consolidated Statement of Cash Flows For the year ended December 31, 2011
2011 2010
(Rupees '000') CASH FLOWS FROM OPERATING ACTIVITIES Loss before taxation Dividend income Adjustments for non-cash items Depreciation Amortization Workers welfare fund Gain on sale of securities Gain on sale of operating fixed assets Provision against non-performing loans and advances Bad debts written off directly Fixed assets written off Provision for diminution in the value of investments Unrealized loss on revaluation of investments classified as held-for-trading Other provisions / write offs Share of income of associates (3,492,009) (137,055) (3,629,064) 280,538 370,534 (2,101) (273,144) (2,574) 2,355,074 15,802 178,913 7,053 200,912 (51,278) 3,079,729 (549,335) (8,237,752) (95,540) 11,351,195 541,631 402,929 5,020,097 (13,639,494) (1,290,521) (6,496,790) (312,508) (6,809,298) (12,089,002) (150,517) (12,239,519) 394,062 371,719 859 (307,541) (464) 9,872,524 53,359 159,676 115,134 158,359 (339,960) 10,477,727 (1,761,792) (747,279) (488,061) 1,798,010 (238,714) (20,161,431) 6,272,863 (741,554) (16,067,958) (872,814) (16,940,772)
(Increase) / decrease in operating assets Lendings to financial institutions Net investments in held-for-trading securities Advances Other assets (excluding advance taxation) Increase / (decrease) in operating liabilities Bills payable Borrowings Deposits and other accounts Other liabilities (excluding current taxation) Income tax paid Net cash used in operating activities CASH FLOWS FROM INVESTING ACTIVITIES Net Investments in available-for-sale securities Net Investments in held-to-maturity securities Net Investments in associates Dividend received Payments for capital work in progress Acquisition of property and equipment Acquisition of intangible assets Sale proceeds of property and equipment disposed of Net cash from investing activities
2,277,767 (22,089) 376,351 137,055 (191,617) (62,329) (7,834) 4,103 2,511,407
10,731,652 (35,501) (808,666) 212,830 (126,035) (114,845) (4,184) 5,007 9,860,258
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NIB Bank Limited Consolidated St a tement of Cash Flows For the year ended December 31, 2011
Note 2011 2010
(Rupees '000') CASH FLOWS FROM FINANCING ACTIVITIES Redemption of sub-ordinated loans Issue of share capital Advance against proposed rights issue Dividend paid Right shares issue cost Net cash from financing activities Net increase / (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year 33 (1,600) 2,222,640 (86) (256,526) 1,964,428 (2,333,463) 11,789,067 9,455,604 (1,600) 6,352,360 (138) 6,350,622 (729,892) 12,518,959 11,789,067
Badar Kazmi

Chairman / Director
Tejpal Singh Hora

Director

Director
Annual Report 2011
109
NIB Bank Limited Notes to the Consolidated Financial Statements For the year ended December 31, 2011
1. STATUS AND NATURE OF BUSINESS The "Group" consists of: Holding Company NIB Bank Limited (the Bank) NIB Bank Limited "the Bank" is incorporated in Pakistan and its registered office is situated at Muhammadi House, I.I.Chundrigar Road, Karachi in the province of Sindh. The Bank is listed on all the stock exchanges in Pakistan and has 179 branches (2010: 178 branches). The Bank is a scheduled commercial bank and is principally engaged in the business of banking as defined in the Banking Companies Ordinance, 1962. The Bank is a subsidiary of Bugis Investments (Mauritius) Pte. Limited which is a wholly owned subsidiary of Fullerton Financial Holdings Pte. Limited which in turn is a wholly owned subsidiary of Temasek Holdings, an investment arm of the Government of Singapore. Subsidiary Companies PICIC Asset Management Company Limited (PICIC AMC) PICIC AMC is a wholly owned subsidiary of the Bank and is an unquoted public limited company with principal business to carry out investment advisory services and asset management services. The Bank acquired interest in PICIC AMC by virtue of acquisition and amalgamation of Pakistan Industrial Credit and Investment Corporation Limited (PICIC) as of June 30, 2007. PICIC Stock Fund (PSF) The Group has acquired 99.99% interest in the PSF. PSF is an open ended mutual fund approved by the Securities and Exchange Commission of Pakistan (SECP) and is listed on the Islamabad Stock Exchange (Guarantee) Limited. The units of the PSF are offered to the public for subscription on a continuous basis and are transferable and redeemable by surrendering them to the PSF. The investment objective of the Fund is to provide investors a diversified equity portfolio with a primary objective of maximizing risk adjusted returns over longer investment horizon through a combination of capital gains and dividend income. Financial and Management Services (Private) Limited (FMSL) The Group also acquired 95.89% interest in FMSL by virtue of acquisition and amalgamation of PICIC. 2. BASIS OF PRESENTATION In accordance with the directives of the Federal Government regarding the shifting of the banking system to Islamic modes, the State Bank of Pakistan (SBP) has issued various circulars from time to time. Permissible forms of traderelated modes of financing include purchase of goods by banks from their customers and immediate resale to them at appropriate mark-up in price on deferred payment basis. The purchases and sales arising under these arrangements are not reflected in these financial statements as such but are restricted to the amount of facility actually utilized and the appropriate portion of mark-up thereon. These consolidated financial statements have been presented in Pakistan Rupees, which is the Group's functional and presentation currency. The amounts are rounded off to the nearest thousand rupees. 3. 3.1 STATEMENT OF COMPLIANCE These consolidated financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) as are notified under the Companies Ordinance, 1984, provisions of and directives issued under the Banking Companies Ordinance, 1962, the Companies Ordinance, 1984 and the directives issued by the SBP. In case the requirements differ, the provisions of and directives issued under the Banking Companies Ordinance, 1962, the Companies Ordinance, 1984 and the directives issued by the SBP shall prevail.
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Notes to the Consolidated Financial Statements For the year ended December 31, 2011
3.2 The SBP vide BSD Circular No. 10, dated August 26, 2002 has deferred the applicability of International Accounting Standard 39, Financial Instruments: Recognition and Measurement (IAS 39) and International Accounting Standard 40, Investment Property for banking companies till further instructions. Further, according to a notification of the Securities and Exchange Commission of Pakistan (SECP) dated April 28, 2008, IFRS 7 "Financial Instruments: Disclosures" has not been made applicable for banks. Accordingly, the requirements of these standards have not been considered in the preparation of these consolidated financial statements. However, investments have been classified and valued in accordance with the requirements of various circulars issued by the SBP. Standards, interpretations and amendments to published approved accounting standards that are not yet effective The following standards, amendments and interpretations of approved accounting standards are effective for accounting periods beginning on or after January 1, 2011: Amendments to IAS 12 deferred tax on investment property (effective for annual periods beginning on or after 1 January 2012). The 2010 amendment provides an exception to the measurement principle in respect of investment property measured using the fair value model in accordance with IAS 40 Investment Property. The measurement of deferred tax assets and liabilities, in this limited circumstance, is based on a rebuttable presumption that the carrying amount of the investment property will be recovered entirely through sale. The presumption can be rebutted only if the investment property is depreciable and held within a business model whose objective is to consume substantially all of the assets economic benefits over the life of the asset. However, this change will not impact the Bank as SBP vide BSD Circular No. 10 dated August 26, 2002 has deferred the applicability of IAS 40 for Banking Companies. IAS 27 Separate Financial Statements (2011) - (effective for annual periods beginning on or after 1 January 2013). IAS 27 (2011) supersedes IAS 27 (2008). Three new standards IFRS 10 - Consolidated Financial Statements, IFRS 11- Joint Arrangements and IFRS 12- Disclosure of Interest in Other Entities dealing with accounting for subsidiaries and associates would be applicable effective 1 January 2013. IAS 27 (2011) carries forward the existing accounting and disclosure requirements for separate financial statements, with some minor clarifications. The amendments have no impact on financial statements of the Bank. IAS 28 Investments in Associates and Joint Ventures (2011) - (effective for annual periods beginning on or after 1 January 2013). IAS 28 (2011) supersedes IAS 28 (2008). IAS 28 (2011) makes the amendments to apply IFRS 5 to an investment, or a portion of an investment, in an associate or a joint venture that meets the criteria to be classified as held for sale; and on cessation of significant influence or joint control, even if an investment in an associate becomes an investment in a joint venture. The amendments have no impact on financial statements of the Bank. IAS 19 Employee Benefits (amended 2011) - (effective for annual periods beginning on or after 1 January 2013). The amended IAS 19 includes the amendments that require actuarial gains and losses to be recognised immediately in other comprehensive income; this change will remove the corridor method and eliminate the ability for entities to recognise all changes in the defined benefit obligation and in plan assets in profit or loss, which currently is allowed under IAS 19; and that the expected return on plan assets recognised in profit or loss is calculated based on the rate used to discount the defined benefit obligation. The impact of these have not been quantified. Presentation of Items of Other Comprehensive Income (Amendments to IAS 1) - (effective for annual periods beginning on or after 1 July 2012). The amendments require that an entity present separately the items of other comprehensive income that would be reclassified to profit or loss in the future if certain conditions are met from those that would never be reclassified to profit or loss. The amendments do not address which items are presented in other comprehensive income or which items need to be reclassified. The requirements of other IFRSs continue to apply in this regard. The amendments have no impact on financial statements of the Bank. Disclosures Transfers of Financial Assets (Amendments to IFRS 7) - (effective for annual periods beginning on or after 1 July 2011). The amendments introduce new disclosure requirements about transfers of financial assets, including disclosures for financial assets that are not derecognised in their entirety; and financial assets that are derecognised in their entirety but for which the entity retains continuing involvement. The amendments have no impact on financial statements of the Bank.
3.3
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Offsetting Financial Assets and Financial Liabilities (Amendments to IAS 32) (effective for annual periods beginning on or after 1 January 2014). The amendments address inconsistencies in current practice when applying the offsetting criteria in IAS 32 Financial Instruments: Presentation. The amendments clarify the meaning of currently has a legally enforceable right of set-off; and that some gross settlement systems may be considered equivalent to net settlement. Offsetting Financial Assets and Financial Liabilities (Amendments to IFRS 7) (effective for annual periods beginning on or after 1 January 2013). The amendments to IFRS 7 contain new disclosure requirements for financial assets and liabilities that are offset in the statement of financial position or subject to master netting agreement or similar arrangement. The amendments have no impact on financial statements of the Bank.
4.
BASIS OF MEASUREMENT These consolidated financial statements have been prepared under the historical cost convention, except for the measurement of certain investments and commitments in respect of forward foreign exchange contracts that are stated at revalued amounts / fair values, staff retirement benefits (Gratuity) which are stated at present value and certain financial assets that are stated net of provisions.
5.
CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY The preparation of consolidated financial statements in conformity with approved accounting standards requires the use of certain critical accounting estimates that affect the reported amounts of assets, liabilities, income and expenses. It also requires the management to exercise its judgment in the process of applying the Group's accounting policies. Estimates and judgments are continually evaluated and are based on historical experience, including expectations of future events that are believed to be reasonable under the circumstances. The areas where various assumptions and estimates are significant to the Group's financial statements or where judgment was exercised in application of accounting policies are as follows:
5.1
Classification of Investments Held-to-maturity securities As described in note 6.4, held-to-maturity securities are investments where the management has positive intent and ability to hold to maturity. The classification of these securities involves management judgment as to whether the financial assets are held-to-maturity investments. Held-for-trading securities Investments classified as held-for-trading are those which the Group has acquired with an intention to trade by taking advantage of short term market / interest rate movements and are to be sold within 90 days. Available-for-sale securities Investments which are not classified as held-for-trading or held-to-maturity are classified as available-for-sale.
5.2
Impairment Valuation and impairment of available-for-sale investments The Group determines that an available-for-sale equity investment is impaired when there has been a significant or prolonged decline in the fair value below its cost. The determination of what is significant or prolonged requires judgment. In making this judgment, the Bank evaluates, among other factors, the normal volatility in share price. In addition, impairment may be appropriate when there is evidence of deterioration in the financial health of the investee, industry and sector performance, changes in technology and operational and financing cash flows. Provision for diminution in the value of Term Finance Certificates, Bonds,and Sukuks is made as per the Prudential Regulations issued by the State Bank of Pakistan.
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In case of impairment of available for sale securities, the loss is recognised in the profit and loss account. Impairment of non financial assets (excluding deferred tax and goodwill) Non financial assets are subject to impairment review if there are events or changes in circumstances that indicate that the carrying amount may not be recoverable. If any such indication exists, the Group estimates the recoverable amount of the asset and the impairment loss, if any. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of future cash flows from the asset discounted at a rate that reflects market interest rates adjusted for risks specific to the asset. If the recoverable amount of an intangible or tangible asset is less than its carrying value, an impairment loss is recognised immediately in the profit and loss account and the carrying value of the asset reduced by the amount of the loss. A reversal of an impairment loss on intangible assets (excluding goodwill) is recognized as it arises provided the increased carrying value does not exceed that which it would have been had no impairment loss been recognized. Impairment of Goodwill Impairment testing involves a number of judgmental areas which are subject to inherent significant uncertainty, including the preparation of cash flow forecasts for periods that are beyond the normal requirements of management reporting and the assessment of the discount rate appropriate to the business. 5.3 Provision against non-performing advances Apart from the provision determined on the basis of time based criteria given in the Prudential Regulations of the SBP, management also applies subjective criteria of classification and accordingly the classification of an advance may be downgraded on the basis of evaluation of the credit worthiness of the borrower, its cash flows, operations in its account and adequacy of security in order to ensure accurate measurement of the provision. 5.4 Retirement Benefits The key actuarial assumptions concerning the valuation of the defined benefit plan and the sources of estimation are disclosed in note 35.2 to these consolidated financial statements. 5.5 Useful life of property and equipment Estimates of useful life of property and equipment are based on management's best estimate. 5.6 Income Taxes In making the estimates for income taxes currently payable by the Group, the management looks at the current income tax laws and the decisions of appellate authorities on certain issues in the past. In making the provision for deferred taxes, estimates of the Group's future taxable profits are taken into account. 6. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies adopted in the preparation of these consolidated financial statements are the same as those applied in the preparation of the consolidated financial statements of the Bank for the year ended December 31, 2010 and are enumerated as follows: 6.1 Business combinations Business combinations are accounted for using the purchase method. Under this method, identified assets acquired, liabilities and contingent liabilities assumed are fair valued at the acquisition date, irrespective of the extent of any minority interest. The excess of cost of acquisition over the fair value of identifiable net assets acquired is recorded as goodwill.
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6.2 Revenue recognition Mark-up / return on performing loans / advances and investments is recognized on time proportionate basis. Where debt securities are purchased at a premium or discount, such premium / discount is amortized through the profit and loss account over the remaining period of maturity using the effective interest rate method so as to produce a constant rate of return. Interest or mark-up recovered on non-performing advances is recognized on a receipt basis in accordance with the requirements of the Prudential Regulations issued by the SBP as amended from time to time. The financing method is used in accounting for income on finance leases and hire purchase transactions. Under this method, the unearned income, i.e. the excess of aggregate lease rentals and the estimated residual value over the net investment (cost of leased assets) is deferred and then amortized to income over the term of the lease on a pattern reflecting a constant periodic rate of return on the net investment in the lease. Unrealized lease income is suspended, where necessary, in accordance with the requirements of the Prudential Regulations issued by the SBP. Rental income from assets given on operating lease is recognized on time proportionate basis over the lease period. Gains / losses on termination of lease contracts, documentation charges and other lease income are recognized as income when they are realized. Fee, commission and brokerage income is recognized at the time of performance of the service. Dividend income is recorded when the right to receive the dividend is established. Management fee is recognized on an accrual basis. Capital gains / lossess arising on sale of investments are included in the profit and loss account in the period in which they arise. 6.3 Grants and assistance In terms of Kreditanstalt fur Wiederaufbau (KFW) loan re-lent by the Government of Pakistan (GoP), the Bank was required to bear interest at 11 percent per annum and pay interest to the GoP at 10 percent per annum and transfer the remaining 1 percent per annum margin to a counter part fund to be used by the Bank for financing feasibility surveys, market surveys and similar investigations destined for the preparation of projects. 6.4 Investments Investments of the Group, other than investments in subsidiaries and associates are classified as held-to-maturity, held-for-trading and available-for-sale. Held-to-maturity These are securities with fixed or determinable payments and fixed maturity and the Group has the positive intent and ability to hold upto maturity. Held-for-trading These securities are either acquired for generating a profit from short-term fluctuations in market prices, interest rate movements, dealer's margin or are securities included in the portfolio for which there is evidence of a recent actual pattern of short-term profit taking. Available-for-sale These are securities which do not fall under the classification of held-for-trading or held-to-maturity securities. Initial measurement All regular way purchases and sales of investments are recognized on the trade date, i.e., the date that the Group
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commits to purchase or sell the asset. Regular way purchases or sales are purchases or sales of investments that require delivery of assets within the time frame generally established by regulation or convention in the market place. Investments are initially recognized at fair value which, in the case of investments other than held-for-trading, includes transaction costs associated with the investments. Subsequent measurement Held-to-maturity These are measured at amortized cost using the effective interest rate method, less any impairment loss recognized to reflect irrecoverable amounts. Held-for-trading These are measured at subsequent reporting dates at fair value. Gains and losses on remeasurement are included in the profit and loss account. Available-for-sale Quoted-securities classified as available-for-sale investments are measured at subsequent reporting dates at fair value. Any surplus / deficit arising thereon is kept in a separate account shown in the balance sheet below equity and taken to the profit and loss account when actually realized upon disposal or when the investment is considered to be impaired. Unquoted equity securities are valued at the lower of cost and break-up value. A decline in the carrying value is charged to the profit and loss account. The break-up value of these equity securities is calculated with reference to the net assets of the investee company as per the latest available audited financial statements. Investments in other unquoted securities are valued at cost less impairment losses. Provision for diminution in the value of securities (except term finance certificates) is made for impairment, if any. Provision for diminution in the value of term finance certificates is made as per the aging criteria prescribed by the Prudential Regulations issued by the SBP. Investment in Associates Investments in associates are accounted for under the equity method. 6.5 Lendings to / borrowings from financial institutions Securities sold subject to a repurchase agreement (repo) are retained in the financial statements as investments and the counter party liability is included in borrowings. Securities purchased under agreement to resale (reverse repo) are not recognized in the financial statements as investments and the amount extended to the counter party is included in lendings to financial institutions. In the case of the continuous funding system, transactions are shown under advances. The difference between sale and repurchase price is treated as mark-up / return expensed whereas difference between purchase and resale price is treated as mark-up / return earned. Securities borrowed are not recognised in the financial statements, unless these are sold to third parties, in which case the obligation to return them is recorded at fair value as a trading liability under borrowings from financial institutions. 6.6 Advances Advances including continuous funding system and net investment in finance lease are stated net of provisions.
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Provisions Specific and general provisions are made based on an appraisal of the loan portfolio that takes into account Prudential Regulations issued by the State Bank of Pakistan from time to time. Specific provisions are made where the repayment of identified loans is in doubt and reflects an estimate of the amount of loss expected. The general provision is for the inherent risk of losses which are known from experience to be present in any loan portfolio. Provision made / reversed during the year is charged to the profit and loss account and accumulated provision is netted off against advances. Advances are written off when there is no realistic prospect of recovery. Net investment in finance lease Leases include hire purchase where the Bank transfers substantially all the risks and rewards incidental to the ownership of an asset and are classified as finance leases. Net investment in finance lease is recognized at an amount equal to the aggregate of minimum lease payments and any guaranteed residual value less unearned finance income, if any. 6.7 Operating fixed assets Owned Property and equipment except freehold and leasehold land is stated at cost less accumulated depreciation and accumulated impairment loss, if any. Freehold and leasehold land is stated at cost. Depreciation is charged to income applying the straight line method over the estimated useful lives of the assets while taking into account any residual value, at the rates given in Note 13.2 to the consolidated financial statements. In respect of additions and deletions to assets during the year, depreciation is charged from the month of acquisition while depreciation on disposals during the year is charged upto the month of disposal. Normal repairs and maintenance are charged to the profit and loss account for the year as and when incurred. Major repairs and improvements are capitalized and assets so replaced are retired. Gains and losses on disposal of property and equipment if any, are taken to the profit and loss account for the year. Assets Held under Finance Lease Leasehold land is stated at cost. Assets held under finance lease are stated at cost less accumulated depreciation. The outstanding obligations under the lease agreements are shown as a liability net of finance charges allocable to future periods. Depreciation on assets held under finance lease is charged in a manner consistent with that for depreciable assets which are owned by the Group. Finance charges are allocated to accounting periods so as to provide a constant periodic rate of return on the outstanding liability. Assets Held under Operating Lease Operating lease assets are stated at cost less accumulated depreciation and impairment, if any. Repairs and maintenance are charged to the profit and loss account as and when incurred. Capital work in progress These assets are stated at cost.
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6.8 Intangible assets Intangible assets include the value of the brand, core deposit relationships, and core overdraft / working capital loan relationships and are stated at cost less accumulated amortisation and accumulated impairment losses, if any. Amortisation is charged to the profit and loss account on a straight line basis over the assets' useful lives which are determined using methods that best reflect the pattern of economic benefits. The estimated useful lives are as follows: Brand Core deposit relationships Core overdraft / working capital loan relationships Management rights 5 years 11 years 11 years Indefinite life
Management rights were stated at cost less accumulated amortization and impairment losses, if any in PICIC AMC. Amortization was charged on straight line basis over a period of 10 years. The useful life of the management rights has been determined, post-acquisition, to be indefinite. Computer softwares are stated at cost less accumulated amortization and accumulated impairment losses, if any. Amortization is carried out on the straight line method at the rates given in Note 14 to the consolidated financial statements. 6.9 Sub-Ordinated Loans Sub-ordinated loans are initially recorded at the amount of proceeds received. Mark-up accrued on these loans is recognized separately as part of other liabilities and is charged to the profit and loss account over the period on an accrual basis. 6.10 Staff retirement benefits Defined contribution plan The Group operates a defined contribution provident fund for all its permanent employees. Equal monthly contributions are made to the fund by both the Group and the employees at the rate of 10% of basic salary. Defined benefit plan The Bank operates an unfunded gratuity scheme covering all eligible employees who have attained the minimum qualifying period of five years. Eligible employees are those employees who have joined the service of the Bank on or before March 31, 2006. Provision is made in accordance with actuarial recommendations. Actuarial valuation is carried out periodically using the "Projected Unit Credit Method'. Actuarial gain / loss is recognized using the 10% corridor approach. Corridor is defined as the greater of 10% of the present value of defined benefit obligations and plan assets. 6.11 Taxation Income tax expense comprises current and deferred tax. Income tax expense is recognised in the profit and loss account except to the extent that it relates to items recognised directly in equity. Current Provision for current taxation is based on taxable income at the current rates of taxation in accordance with the prevailing laws for taxation on income earned after taking into consideration tax credits and rebates available and any adjustments to tax payable in respect of previous years.
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Deferred Deferred tax is recognized using the balance sheet liability method on all major temporary differences as at the statement of financial position date between the amounts attributed to assets and liabilities for financial reporting purposes and amounts used for taxation purposes. The Bank records deferred tax assets / liabilities using tax rates, enacted or substantially enacted at the statement of financial position date, that are expected to be applicable at the time of their reversal. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realized. The Group recognizes a deferred tax asset / liability on deficit / surplus on revaluation of securities in accordance with the requirements of IAS 12 "Income Taxes". The related deferred tax asset / liability is adjusted against the related deficit / surplus. The Group recognizes a deferred tax asset for the carry forward of unused tax losses and unused tax credits to the extent that it is probable that future taxable profits will be available against which the unused tax losses and unused tax credits can be utilized in accordance with the requirements of IAS 12 "Income Taxes". 6.12 Provisions Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of past events and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be made. Provisions are reviewed quarterly and are adjusted to reflect the current best estimate. 6.13 Offsetting Financial assets and financial liabilities are offset and the net amount is reported in the financial statements when there is a legally enforceable right to set-off the recognized amount and the Group intends either to settle on a net basis, or to realize the assets and to settle the liabilities simultaneously. Income and expense items relating to such assets and liabilities are also offset and the net amount is reported in the financial statements. 6.14 Dividend distribution Dividend is recognized as a liability in the period in which it is declared. 6.15 Distributions of bonus shares and other appropriations to reserves The Group recognizes all appropriations, other than statutory appropriations, to reserves including those in respect of bonus shares made after the balance sheet date, in the period in which such appropriations are approved. 6.16 Foreign currencies Transactions in foreign currencies are translated to Rupees at the foreign exchange rates prevailing at the transaction date. Monetary assets and liabilities in foreign currencies are translated into Rupees at the rates of exchange prevailing at the balance sheet date. Forward foreign exchange contracts and foreign bills purchased are valued at forward rates applicable to their respective maturities. Commitments for outstanding forward foreign exchange contracts are disclosed in these consolidated financial statements at committed amounts. Contingent liabilities / commitments for letters of credit and letters of guarantee denominated in foreign currencies are expressed in Rupee terms at the rates of exchange approximating those prevailing at the balance sheet date. Assets against which the constituents have exercised their option to transfer exchange risk to the Group and liabilities for which the Group has exercised its option to transfer exchange risk to the Government, are translated at the rates of exchange guaranteed by the Group and the Government, respectively.
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Assets, liabilities, commitments and contingent liabilities in respect of Bangladesh are translated at foreign exchange rates approximating those prevailing prior to August 15, 1971. Exchange gains and losses are included in income currently except net unrealized exchange gain on long-term monetary items which, as a matter of prudence, is carried forward as unrealized gain in view of the uncertainty associated with its realization. 6.17 Cash and cash equivalents For the purposes of the cash flow statement, cash and cash equivalents include cash and balances with treasury banks and balances with other banks. 6.18 Financial instruments All financial assets and liabilities are recognized at the time when the Group becomes a party to the contractual provisions of the instrument. Financial assets are derecognized when the Group loses control of the contractual rights that comprise the financial assets. Financial liabilities are derecognized when they are extinguished i.e. when the obligation specified in the contract is discharged, cancelled or expired. Any gain or loss on derecognition of the financial assets and financial liabilities is taken to income directly. Financial assets carried on the balance sheet include cash and bank balances, lendings to financial institutions, investments, advances and certain receivables. Financial liabilities include borrowings, deposits, bills payable and other payables. The particular recognition methods adopted for significant financial assets and financial liabilities are disclosed in the individual policy statements associated with them. 6.19 Derivative financial instruments Derivative financial instruments are recognized at their fair value on the date on which a derivative contract is entered into and subsequently these instruments are marked to market and changes in fair values are taken to the profit and loss account. Fair values are obtained from quoted market prices in active markets. 6.20 Segment reporting A segment is a distinguishable component of the Bank that is engaged in providing products or services (business segment), or in providing products or services within a particular economic environment (geographical segment), which is subject to risks and rewards that are different from those of other segments. The Banks primary format of reporting is based on business segments. 6.20.1 Business Segments Corporate and Investment Banking It represents all funded and non funded credit facilities of working capital financing including seasonal finance, trade finance, cash finance, running finance, guarantees and bills of exchange relating to corporate customers, as well as for long term expansion, BMR, Project financing, syndicated financing along with advisory, underwriting, transactional banking, and IPO related activities. Retail It represents banking services offered to individuals and small businesses through a retail branch banking and alternate distribution network. These banking services include lending, deposits and distribution of insurance products along with other financial products and services tailored for such customers. Small & Medium Enterprises and Commercial It represents all funded and non funded credit facilities, deposit products & transaction services offered by the Bank to small & medium enterprises and commercial businesses operating in the manufacturing, trading, wholesale and service sectors.
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Treasury Treasury manages the asset and liability mix of the Bank, and provides customers with products that meet their demands for management of liquidity, cash flow, interest rate fluctuations and foreign exchange risk. 6.20.2 Geographical segments The Group operates in Pakistan only. 6.21 Assets acquired in satisfaction of claims The Bank occasionally acquires assets in settlement of certain advances. These are stated at the lower of the carrying value of the related advances and the current fair value of such assets. 6.22 Deposits Deposits are initially recorded at the amount of proceeds received. Mark-up accrued on deposits is recognized separately as part of other liabilities and is charged to the profit and loss account on a time proportionate basis. 6.23 Earnings per share The Group presents earnings per share (EPS) data for its ordinary shares. EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Group by the weighted average number of ordinary shares outstanding during the year. 7. BASIS OF CONSOLIDATION The assets and liabilities of subsidiary companies have been consolidated on a line by line basis and the carrying value of investment in subsidiaries held by the holding company is eliminated against the shareholders' equity in the consolidated financial statements. Material intra-group balances and transactions have been eliminated. These consolidated financial statements includes the financial statements of NIB Bank Limited and its subsidiary companies - "the Group". Subsidiary companies are fully consolidated from the date on which more than 50% of the voting rights are transferred to the Group, or the power to control the Company is established and are excluded from consolidation from the date of disposal or when the control is lost. Non controlling interest represents that part of the net results of operations and of net assets of the subsidiary companies that is not owned by the Group. Financial and Management Services (Private) Limited has not been consolidated as it is not material and this investment has been fully provided.
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Annual Report 2011
8. CASH AND BALANCES WITH TREASURY BANKS Note 2011 2010
(Rupees '000') In hand Local currency Foreign currencies With State Bank of Pakistan in Local currency current accounts Foreign currency current account Foreign currency deposit accounts With National Bank of Pakistan in local currency current accounts 8.1 2,236,526 254,442 3,852,169 260,843 807,546 557,518 7,969,044 8.1 8.2 8.3 8.4 These includes National Prize Bonds of Rs. 6.237 million (2010 : Rs. 4.611 million). The current account is maintained under the requirements of Section 22 of the Banking Companies Ordinance, 1962. This includes special cash reserve at Nil return (2010: Nil) required to be maintained with the SBP on deposits held under the new foreign currency accounts scheme. This represents special cash reserve of 15% required to be maintained with the SBP on deposits held under the new foreign currency accounts scheme at Nil return (2010: Nil) per annum. BALANCES WITH OTHER BANKS In Pakistan In current accounts In deposit accounts Outside Pakistan in current accounts Provision against doubtful balances 853,476 633,084 1,486,560 1,486,560 9.1 309,957 1,114 2,645,486 2,956,557 (3,964) 2,952,593 2,155,359 277,891 4,287,132 308,292 1,034,595 773,205 8,836,474
8.2 8.3 8.4
9.
Provision against doubtful balances represents impairment in balance outstanding with BCCI. The said amount has been written off in the current year. LENDINGS TO FINANCIAL INSTITUTIONS Call money lendings Repurchase agreement lendings (Reverse Repo) 10.2 10.3 & 10.4 195,000 14,471,918 14,666,918 725,000 5,704,166 6,429,166 6,429,166 6,429,166
10.
10.1 Particulars of Lendings In local currency In foreign currencies 14,666,918 14,666,918
10.2 These represent unsecured call money lending to a financial institution carrying mark-up rate of 12.25% (2010: 12.75% to 15.00%) per annum and having remaining maturity of three days. 10.3 These represent repurchase agreement lendings to financial institutions carrying mark-up rates ranging from 11.63% to 13.31% (2010: 12.70% to 13.90%) per annum and having remaining maturities upto one month.
Annual Report 2011
121
10.4 Securities held as collateral against lendings to financial institutions
2011 Further Held by given as Group collateral/ sold 2010 Further Total Held by given as Group collateral/sold (Rupees '000')
13,968,344 503,574 14,471,918 499,931 1,429,763 1,929,694 3,461,900 312,572 3,774,472
Total
Market Treasury Bills

Pakistan Investment Bonds
5,969,968 503,574 6,473,542
7,998,376 7,998,376
3,961,831 1,742,335 5,704,166
10.4.1 The market value of securities held as collateral against lendings to financial institutions as at December 31, 2011 amounted to Rs. 14,517.363 million (2010: Rs. 5,717.143 million).
2011 Given as collateral 2010 Given as collateral
Note
Held by Group
Total
Held by Group
Total
(Rupees '000')
11.
INVESTMENTS
11.1 (a) Investments by types:

Held-for-trading securities Ordinary shares / certificates in listed companies / modarabas
11.2
87,075 87,075
8,465 8,465
95,540 95,540
Available-for-sale securities Market Treasury Bills Pakistan Investment Bonds Defense Savings Certificates Sukuk Bonds Cumulative Preference Shares Ordinary Shares / Certificates in Listed Companies / Modarabas Ordinary Shares of Unlisted Companies Term Finance Certificates Units / Certificates of Mutual Funds
11.2.1 11.2.1 & 11.2.2 11.3 11.4 11.5 11.6 11.7 11.8 & 11.9 11.10
7,687,909 2,897,683 528,774 80,178 961,085 66,092 2,372,733 13,005 14,607,459
18,826,953 6,180,265 2,730 112,373 25,122,321 4,499,632 4,499,632 29,630,418
26,514,862 9,077,948 2,730 528,774 80,178 1,073,458 66,092 2,372,733 13,005 39,729,780 4,735,612 97,334 4,832,946 3,565,988 724 48,224,978
12,450,355 2,612,273 5,771 505,126 50,000 1,053,073 66,049 5,171,496 270,106 22,184,249 4,691,896 118,961 4,810,857 4,102,774 724 31,098,604
18,562,576 961,963 2,730 112,373 19,639,642 19,639,642
31,012,931 3,574,236 8,501 505,126 50,000 1,165,446 66,049 5,171,496 270,106 41,823,891 4,691,896 118,961 4,810,857 4,102,774 724 50,738,246
Held-to-maturity securities Pakistan Investment Bonds Term Finance Certificates
11.2.1 11.8 & 11.9
235,980 97,334 333,314
Associates
Subsidiary
11.11 11.12
3,565,988 724 18,594,560
Total investments - Gross Provision for diminution in value of investments Investments - net of provisions Deficit on revaluation of Held-for-trading securities Surplus / (Deficit) on revaluation of available-for-sale securities Net Investments 23
11.13 &11.14
(498,103) 18,096,457
(65,863) 29,564,555
(563,966) 47,661,012
(449,668) 30,648,936
(24,873) 19,614,769
(474,541) 50,263,705
(5,933) 55,249 18,145,773
(1,120) 76,833 29,640,268
(7,053) 132,082 47,786,041
22,882 30,671,818
(77,504) 19,537,265
(54,622) 50,209,083
122
Annual Report 2011
Note 2011 2010
11.1 (b) Investments by segments:
(Rupees '000') Federal Government Securities Market Treasury Bills Pakistan Investment Bonds Defense Savings Certificates Sukuk Bonds Cumulative Preference Shares Fully Paid-up Ordinary Shares & Modaraba certificates Listed Unlisted Term Finance Certificates Listed Unlisted Units / Certificates of Mutual Funds Associates Subsidiary Total investments - Gross Provision for diminution in value of investments Investments - net of provisions Deficit on revaluation of held-for-trading securities Surplus / (Deficit) on revaluation of available-for-sale securities Net Investments 23 11.13 & 11.14
11.2.1 11.2.1 & 11.2.2 11.3 11.4 11.5 11.6 11.7
26,514,862 13,813,560 2,730 528,774 80,178 1,168,998 66,092
31,012,931 8,266,132 8,501 505,126 50,000 1,165,446 66,049
11.8 11.9 11.10 11.11 11.12
2,311,691 158,376 13,005 3,565,988 724 48,224,978 (563,966) 47,661,012 (7,053) 132,082 47,786,041
2,321,843 2,968,614 270,106 4,102,774 724 50,738,246 (474,541) 50,263,705 (54,622) 50,209,083
11.2 Shares with market value aggregating to Rs. 7.345 million have been pledged with the National Clearing Company Limited of Pakistan (NCCPL) as collateral against trading facility in Stock Exchange. 11.2.1 Market Treasury Bills and Pakistan Investment Bonds are held with the SBP and are eligible for rediscounting. Market Treasury Bills embody effective yields ranging from 11.92% to 13.35% (2010: 12.02% to 13.78%) with remaining maturities of 138 days to 320 days and Pakistan Investment Bonds carry mark-up ranging from 8% to 12% (2010: 8% to 14%) per annum on semi-annual basis with remaining maturities of 116 days to 10 years. Certain government securities are required to be maintained with the SBP to meet statutory liquidity requirements calculated on the basis of demand and time liabilities. 11.2.2 This includes Rs. 100 million PIB outstanding as at December 31, 2011, which was pledged against borrowing from a Company in 2004. As the lender had failed to return the pledged PIB upon the maturity of the contract period, this amount is appearing as investment in PIBs with a corresponding amount appearing in Borrowings. No interest is accrued either as income from the PIB or as expense on this borrowing since the filing of the dispute between the Bank and the Company. 11.3 These DSCs of Rs. 2.730 million are pledged as security and carry interest rate at 12.15 % per annum. 11.4 These Sukuk Bonds of Liberty Power Tech Limited carry mark-up rate of 3 months KIBOR + 300 bps and have an original maturity of 12 years.
Annual Report 2011
123
11.5 Particulars of investment in Cumulative Preference Shares Number of Shares held 2011 2010 2,500,000 2,500,000 3,017,800 2,500,000 2,500,000 Total nominal value 2011 2010 (Rupees '000') 25,000 25,000 30,178 80,178 25,000 25,000 50,000
Note Investee Pak Elektron Limited Fazal Cloth Mills Limited Galaxy Textile Mills Limited 11.5.1 11.5.2 11.5.3
11.5.1 These preference shares carry fixed dividend of 9.5% on cumulative basis payable when and if declared by the Board of Directors. For redemption, the call option can be exercised by PEL up to 100% after three years of the issue date at 1% premium on the issue price. 11.5.2 These preference shares are redeemable upon the exercise of a call option by the company after completion of three years from the issue date. 11.5.3 These preference shares are non voting and convertible into ordinary shares after 10 years. These preference shares bears a fixed return at the rate of 5% per annum that will be non cumulative for the first five years and thereafter will be cumulative from year to year. 11.6 Particulars of investment in Listed Shares / Certificates Number of Shares / Certificates held 2011 2010 Held-for-trading securities Allied Bank Limited Engro Corporation Limited Fatima Fertilizer Company Limited Fauji Fertilizer Bin Qasim Limited Fauji Fertilizer Company Limited Habib Bank Limited Hub Power Company Limited Kot Addu Power Company Limited Lucky Cement Limited MCB Bank Limited Oil and Gas Development Company Limited Pakistan Oilfields Limited Pakistan Petroleum Limited Pakistan State Oil Company Limited United Bank Limited Total Available-for-sale Abbott Laboratories (Pakistan) Limited Adamjee Insurance Company Limited Agriauto Industries Limited Awan Textile Mills Limited Bank Alfalah Limited Bank AL Habib Limited Brother Textile Mills Limited Cost of investment 2011 2010 (Rupees '000') 2,250 8,081 8,774 1,715 7,725 2,360 11,421 11,335 4,932 3,231 5,369 9,422 7,252 9,335 2,338 95,540 -
35,000 75,000 380,000 33,245 50,000 20,000 277,000 248,000 65,000 20,500 35,000 26,500 41,000 40,000 40,000
721,281 1,533,330 39,000 390,449 87
738,086 1,533,330 311,572 39,000 1,000,000 742,041 87
149,705 172,304 390 10,928 2
151,814 172,304 21,504 390 14,339 24,023 2
124
Annual Report 2011
Number of Shares / Certificates held 2011 2010 Cost of investment 2011 2010 (Rupees '000')
Available-for-sale Dewan Farooq Motors Limited Fatima Fertilizer Company Limited First Fidelity Lease Modaraba First National Bank Modaraba First Tawakal Modaraba Glamour Textile Mills Limited GlaxoSmithKline Pakistan Limited Habib Insurance Company Limited Ibrahim Fibres Limited Karam Ceramics Limited KSB Pumps Company Limited Lafarage Pakistan Cement Limited GDR (formerly Pakistan Cement Limited) LTV Capital Modaraba Millat Tractors Limited Mohib Textile Mills Limited Security Investment Bank Limited Security Papers Limited Sitara Chemical Industries Limited Tariq Glass Industries Limited Tawakal Garment Limited The Hub Power Company Limited Trust Modaraba Yousuf Weaving Mills Limited Total Total Listed Shares / Certificates
1 581,880 446,774 200,000 568,977 *1,613,557 300 429,146 111,017 10,000 *171,473 408,592 5 10 105,126 6,349,212 150,000 7,289,451 100 100
944,225 195,349 1 699,751 446,774 200,000 576,254 *1,533,457 300 430,146 114,774 10,000 *171,473 413,592 5 10 151,538 105,862 2,116,404 150,000 8,314,581 100 100
4,946 5,016 95,192 83,772 5 8,321 20,044 2,819 5,573 152,971 33,640 90,022 237,805 1 2 1,073,458 1,168,998
30,184 2,755 5,948 5,016 110,407 89,231 5 8,326 20,554 2,819 5,573 150,910 7,442 33,735 37,113 271,049 1 2 1,165,446 1,165,446
Annual Report 2011
125
Number of Shares held Note 11.7 Particulars of Unlisted Shares Pakistan Export Finance Guarantee Agency Limited Chief Executive: Syed Mohammad Zaeem Central Depository Company of Pakistan Limited Chief Executive: Mr. Muhammad Hanif Jakhura Crescent Capital Management (Private) Limited Chief Executive: Mr. Mahmood Ahmed Equity Participation Fund Limited Chief Executive: Mr. S. Shabahat Hussain Pakistan Textile City (Private) Limited Chief Executive: Mr. Zaheer A. Hussain National Investment Trust Limited Chief Executive: Mr. Wazir Ali Khoja Sunbiz (Private) Limited Chief Executive: Mr. Nisar Ahmed SWIFT Chief Executive: Mr. Lazaro Campos 11.7.1 11.7.2 11.7.3 11.7.4 11.7.5 11.7.6 11.7.7 11.7.8 5.26% 5.00% 4.88% 0.97% 4.00% 8.33% 4.65% 8.09% 568,044 3,250,000 100,000 **5,087 5,000,000 **79,200 10,000 ***9 568,044 2,500,000 100,000 **5,087 5,000,000 **79,200 10,000 ***9 5,680 5,000 1,000 509 50,000 100 1,000 2,803 66,092 11.7.1 This investment is fully provided in these consolidated financial statements. 11.7.2 Value of investment, based on the net assets stated in the audited financial statements of investee company as at June 30, 2011 amounts to Rs. 80.646 million. 11.7.3 This investment is fully provided in these consolidated financial statements. 11.7.4 Value of investment, based on the net assets stated in the audited financial statements of investee company as at June 30, 2008 amounts to Rs. 11.477 million. 11.7.5 Value of investment, based on the net assets stated in the audited financial statements of investee company as at June 30, 2011 amounts to Rs. 38.013 million. 11.7.6 Value of investment, based on the net assets stated in the audited financial statements of investee company as at June 30, 2011 amounts to Rs. 1,140.824 million. 11.7.7 This investment is fully provided in these consolidated financial statements. 11.7.8 Value of investment, based on the net assets stated in the audited financial statements of investee company as at December 31, 2010 amounts to Rs. 2.785 million. 5,680 5,000 1,000 509 50,000 100 1,000 2,760 66,049 Percentage of holding 2011 2010 Cost of Investment 2011 2010
(Rupees '000')
126
Annual Report 2011
Number of Certificates held 2011 11.8 Particulars of investment in Listed Term Finance Certificates Investee Askari Bank Limited Azgard Nine Limited Bank Alfalah Limited Bank AL Habib Limited Engro Fertilizer Limited (formerly Engro Corporation Limited) Escorts Investment Bank Limited Orix Leasing Pakistan Limited PACE Pakistan Limited Pakistan Mobile Communications Limited Soneri Bank Limited Summit Bank Limited Telecard Limited United Bank Limited 11.9 53,120 10,000 60,000 8,500 223,438 2,016 76,400 6,000 24,000 6,000 10,000 74,888 45,000 37,320 10,000 60,000 8,500 199,038 2,016 71,400 6,000 24,000 6,000 74,888 65,000 2010
Amortized cost 2011 2010
(Rupees '000')
267,238 37,509 300,047 28,260 1,102,224 3,022 63,155 29,964 59,904 22,446 50,000 137,607 210,315 2,311,691
186,500 37,584 300,197 42,398 978,687 5,036 173,912 29,976 99,840 29,934 136,052 301,727 2,321,843
Particulars of investment in Unlisted Term Finance Certificates Avari Hotels Limited New Khan Transport Company (Private) Limited Power Holdings (Private) Limied 30,400 20,000 30,400 20,000 557,800 129,070 29,306 158,376 129,070 50,544 2,789,000 2,968,614
Number of Units / Certificates held 2011 2010
Cost of investment 2011 2010 (Rupees '000')
11.10
Particulars of Mutual Funds Atlas Money Market Fund Faysal Savings Growth Fund First Dawood Mutual Fund JS Growth Fund JS Large Capital Fund NAFA Government Securities Liquid Fund NAFA Savings Plus Fund Pakistan Strategic Allocation Fund 900,000 227,410 64,211 98,500 951,022 900,000 227,410 38,509 1,500,000 1,500,000 8,370,000 6,975 2,911 3,119 13,005 50,000 100,000 6,975 2,911 3,119 15,405 15,529 76,167 270,106
Annual Report 2011
127
Number of Shares / Units / Certificates held 2011 2010 Total carrying value 2011 2010 (Rupees '000')
Holding
11.11
Particulars of investment in associates PICIC Investment Fund PICIC Growth Fund PICIC Energy Fund PICIC Income Fund PICIC Cash Fund PICIC Insurance Limited 34.04% 15.34% 27.17% 36.88% 48.47% 30.00% 96,703,821 43,482,858 27,172,160 3,944,000 9,372,114 10,499,993 96,703,821 43,482,858 27,172,160 9,987,674 1,399,420 10,499,993 968,439 952,068 236,701 397,941 940,358 70,481 3,565,988 1,310,115 1,272,394 309,763 1,000,528 140,723 69,251 4,102,774
11.11.1
Summarized financial information in respect of associates is set out below:

2011
Total assets
Total liabilities
Net assets
Total revenue
Profit / (loss) for the year / period
Share of profit / (loss) for the year / period
(Rupees '000')
PICIC Investment Fund PICIC Growth Fund PICIC Energy Fund PICIC Income Fund PICIC Cash Fund PICIC Insurance limited
2,953,943 6,373,215 888,249 1,087,758 1,953,776 924,891
108,577 2,845,366 17,134 871,115
507,238 201,999 225,422 124,737 233,793
(159,424) (243,724) (18,886) 157,591 122,071 4,101
(54,266) (37,381) (5,132) 91,417 55,410 1,230 51,278
165,914 6,207,301 1,041,898 8,793 1,078,965 13,671 1,940,105 689,953 234,938
128
Annual Report 2011
Number of Shares / Certificates held 2011 11.12 Particulars of investment in unconsolidated subsidiary Financial and Management Services (Private) Limited **88,850 **88,850 724 724 Unless otherwise stated, holdings in modaraba certificates and ordinary shares are of Rs. 10 each. * Shares / Modaraba Certificates of Face Value of Rs. 5 each ** Shares / Modaraba Certificates of Face Value of Rs. 100 each *** Shares of Face Value of Euro 2,680 each All Term Finance Certificates are of Original Face Value of Rs. 5,000 each 724 724 2010
Total carrying value 2011 2010 (Rupees '000')
11.13
Particulars of provision for diminution in value of investments 2011 2010 (Rupees '000') Opening balance Charge for the year Reversal for the year - Term Finance Certificates Reversal due to sale Closing balance 474,541 200,151 (21,238) 178,913 (89,488) 563,966 558,733 118,149 (3,015) 115,134 (199,326) 474,541
11.14
Particulars of provision in respect of type and segment Available-for-sale securities - Listed shares / Certificates / Units - Unlisted shares - Unlisted Term Finance Certificates Subsidiary
432,836 49,845 80,561 563,242 724 563,966
407,436 15,837 50,544 473,817 724 474,541
Annual Report 2011
129
2011 (Rupees '000') 11.15 Quality of Held-for-trading / Available-for-sale Securities - at Market Value Federal Government Securities Market Treasury Bills Pakistan Investment Bonds Defense Savings Certificates Sukuk Bonds Cumulative Preference shares Pak Elektron Limited Fazal Cloth Mills Limited Galaxy Textile Mills Limited Ordinary shares of Listed Companies Abbott Laboratories Pakistan Limited Adamjee Insurance Company Limited Agriauto Industries Limited Allied Bank Limited Bank Alfalah Limited Bank AL Habib Limited Dewan Farooq Motors Limited Engro Corporation Limited Fatima Fertilizer Company Limited Fauji Fertilizer Bin Qasim Limited Fauji Fertilizer Company Limited First National Bank Modaraba GlaxoSmithKline Pakistan Limited Habib Bank Limited Habib Insurance Company Limited K.S.B. Pumps Limited Karam Ceramics Limited Kot Addu Power Company Limited Lucky Cement Limited MCB Bank Limited Millat Tractors Limited Oil and Gas Development Company Limited Pakistan Oilfields Limited Pakistan Petroleum Limited Pakistan State Oil Company Limited Security Papers Limited Sitara Chemicals Industries Limited Tariq Glass Limited The Hub Power Company Limited United Bank Limited 71,977 71,315 1,885 11,140 6,952 8,710 1,411 7,477 4,160 38,167 2,122 15,894 2,699 2,189 10,247 4,878 2,759 149,222 5,307 9,181 6,901 9,088 7,590 52,063 258,772 2,096 * AA AA AA+/A1+ AA A+ * * A+/A-1 * AA+ A+ * * * * AA+ * AAA * * AA+ A+/A-1 * AA+/A1+ AA+ 80,998 134,166 23,742 11,210 26,906 2,153 2,204 4,604 50,820 21,545 6,899 3,355 206,705 6,798 13,524 43,429 311,048 * AA * AA / A1+ AA+/A1+ * A/A1 A+/A-1 * A+ * * * AAA / A-1+ AA-/A-1 * AA+/A1+ 25,000 25,000 30,178 BBB/A3 A-/A2 * 25,000 25,000 A/A1 A-/A2 26,634,300 9,038,705 2,730 528,774 Unrated Unrated Unrated Unrated 30,956,373 3,389,587 8,501 505,126 Unrated Unrated Unrated Unrated Rating 2010 (Rupees '000') Rating
130
Annual Report 2011
2011 (Rupees '000') Rating 2010 (Rupees '000') Rating
Ordinary shares of Unlisted Companies Central Depository Company of Pakistan Limited Crescent Capital Management (Private) Limited Equity Participation Fund Limited National Investment Trust Limited Pakistan Export Finance Guarantee Agency Limited Pakistan Textile City (Private) Limited Sun Biz (Private) Limited SWIFT Units / Certificates of Mutual Funds Atlas Money Market Fund Faysal Saving Growth Fund First Dawood Mutual Fund JS Growth Fund JS Large Capital Fund NAFA Government Securities Liquid Fund NAFA Saving Plus Fund Pakistan Strategic Allocation Fund Term Finance Certificates Askari Bank Limited Avari Hotels Limited Azgard Nine Limited Bank Alfalah Limited Engro Fertilizer Limited (formerly Engro Corporation Limited) Escorts Investment Bank Limited New Khan Transport Company (Private) Limited Orix Leasing Pakistan Limited PACE Pakistan Limited Pakistan Mobile Communication Limited Power Holdings (Private) Limited Summit Bank Limited Telecard Limited United Bank Limited 271,226 129,070 18,785 308,454 1,104,900 2,228 29,306 61,586 29,964 60,066 48,066 134,697 199,123 39,517,513 AAA- (SO) D AAAA BB * AA+ D A+ * A (SO) D AA 188,735 129,070 18,110 294,916 982,381 4,996 50,544 176,941 29,096 99,822 2,789,000 128,904 285,137 41,360,941 AAACCC(RW) AAAA A * AA+ A+(-) A+ * BBB AA 1,530 1,069 2,462 FR 2-STAR / 3-STAR * * 50,777 100,000 1,800 1,262 2,509 15,467 15,424 70,308 AA+(f) A(f) FR 2-STAR / 3-STAR FR 3-STAR * AAA(f) AA-(f) FR 4-STAR 5,000 1,000 509 100 5,680 50,000 1,000 2,803 * * * AM2 * * * * 5,000 1,000 509 100 5,680 50,000 1,000 2,760 * * * AM2 * * * *
* Rating not available
Annual Report 2011
131
Note
12. ADVANCES Loans, cash credits, running finance, etc.- in Pakistan Net investment in finance lease - in Pakistan Bills discounted and purchased (excluding Treasury Bills) Payable in Pakistan Payable outside Pakistan Advances - Gross Provision against non-performing advances - Specific - General Advances - Net of provisions 60,861,513 12.1 74,583,584 This includes a sum of Rs. 72.337 million (2010: Rs. 72.337 million) representing unrealized exchange gain, which has not been recognised as income and deferred in these consolidated financial statements, in accordance with the policy of the Bank, as stated in note 6.16. Particulars of advances 79,162,997 5,326,214 84,489,211 12.2.2 Short term (up to one year) Long term (over one year) 71,455,059 13,034,152 84,489,211 93,971,503 4,390,620 98,362,123 81,580,362 16,781,761 98,362,123 12.1 12.3
2011
2010
(Rupees '000')
77,752,719 1,975,733 225,889 4,534,870 12.4 12.5 84,489,211 (23,345,559) (282,139) (23,627,698) 91,973,838 2,310,162 247,310 3,830,813 98,362,123 (22,826,463) (952,076) (23,778,539)
12.2
12.2.1 In local currency In foreign currencies
12.3
Net Investment in Finance Lease
2011 Not later Later than than one one and less year than five years Over five years Total
(Rupees '000')
Lease rentals receivable Residual value Minimum lease payments Financial charges for future periods (including income suspended) Present value of minimum lease payments 1,835,620 530,913 2,366,533 (419,332) 1,947,201 31,545 31,545 (3,013) 28,532 2010 Lease rentals receivable Residual value Minimum lease payments Financial charges for future periods (including income suspended) Present value of minimum lease payments 1,940,975 731,926 2,672,901 (428,917) 2,243,984 48,101 25,282 73,383 (7,205) 66,178 1,989,076 757,208 2,746,284 (436,122) 2,310,162 1,867,165 530,913 2,398,078 (422,345) 1,975,733
12.3.1 A major portion of these leases are non performing against which provision of Rs. 1,433.547 million has been held.
132
Annual Report 2011
12.4 Advances include Rs. 34,194.582 million (2010: Rs. 34,711.468 million), which have been placed under nonperforming status as detailed below: 2011
Note Classified Advances Domestic Overseas
Category of Classification
Provision Required Total Domestic Overseas Total (Rupees '000')
Provision Held Domestic Overseas Total
Substandard Doubtful Loss
12.4.1
3,163,483 1,914,497 29,116,602 34,194,582
3,163,483 604,976 1,914,497 348,750 29,116,602 22,391,833 34,194,582 23,345,559 2010
604,976 348,750 22,391,833 23,345,559
604,976 348,750 22,391,833 23,345,559
604,976 348,750 22,391,833 23,345,559
Classified Advances Domestic Overseas

Category of Classification
Provision Required Total Domestic Overseas Total (Rupees '000')
Provision Held Domestic Overseas Total
Substandard Doubtful Loss
6,276,443 5,966,804 22,468,221 34,711,468
6,276,443 1,353,623 5,966,804 2,859,483 22,468,221 18,613,357 34,711,468 22,826,463
1,353,623 2,859,483 18,613,357 22,826,463
1,353,623 2,859,483 18,613,357 22,826,463
1,353,623 2,859,483 18,613,357 22,826,463
12.4.1 Included in the Provision Required is an amount of Rs. 594.565 million (2010: Rs. 1,329.967 million) which represents provision in excess of the requirements of the State Bank of Pakistan. 12.4.2 In accordance with BSD Circular No. 1 dated October 21, 2011 issued by the State Bank of Pakistan, the Bank has availed the benefit of FSV against the non-performing advances. Had the benefit of FSV not been availed by the Bank, the specific provision against nonperforming advances for the year ending December 31, 2011 would have been higher by Rs. 3,823.874 million (cumulative upto December 31, 2011: Rs. 6,948.242 million) and profit after tax for the year ending December 31, 2011 would have been lower by approximately Rs. 3,823.874 million (cumulative upto December 31, 2011: Rs. 5,854.713 million). Increase in profit would not be available for the distribution of cash and stock dividend to shareholders.
12.5 Particulars of provision against non-performing advances Note Specific 2011 General Total Specific 2010 General Total
(Rupees '000') Opening balance Charge for the year Reversals Amounts written off Closing balance
12.5.1 Particulars of provision against non-performing advances - currency wise
12.6.1
22,826,463 5,754,521 (2,729,510) 3,025,011 (2,505,915) 23,345,559
952,076 (669,937) (669,937) 282,139
23,778,539 5,754,521 (3,399,447) 2,355,074 (2,505,915) 23,627,698
15,746,457 10,603,469 (1,450,127) 9,153,342 (2,073,336) 22,826,463
232,894 804,406 (85,224) 719,182 952,076
15,979,351 11,407,875 (1,535,351) 9,872,524 (2,073,336) 23,778,539
In local currency In foreign currencies
23,345,559 23,345,559
282,139 282,139
23,627,698 23,627,698
22,826,463 22,826,463
952,076 952,076
23,778,539 23,778,539
Annual Report 2011
133
Note 12.6 12.6.1 Particulars of write offs: Against provisions Directly charged to profit and loss account 2,505,915 15,802 2,521,717 12.7 12.7 254,056 2,267,661 2,521,717 2,073,336 53,359 2,126,695 222,174 1,904,521 2,126,695 2011 2010
(Rupees '000')
12.6.2
Write offs of Rs. 500,000 and above Write offs of below Rs. 500,000 Details of loan write offs of Rs. 500,000 and above
12.7
In terms of sub-section (3) of section 33A of the Banking Companies Ordinance, 1962, the statement in respect of written off loans or any financial relief of five hundred thousand rupees or above allowed to person(s) during the year ended December 31, 2011 is given in Annexure 1. However, this write off does not affect the Bank's right to recover the debts from any customers. 12.8 Particulars of loans and advances to directors, associated companies etc. Debts due by directors, executives or officers of the Bank or any of them either severally or jointly with any other persons: Balance at the beginning of the year Additions during the year Repayments during the year Balance at the end of the year 1,401,728 594,180 (777,788) 1,218,120 1,347,471 621,481 (567,224) 1,401,728
Debts due by subsidiary companies, controlled firms, managed modarabas and other related parties Balance at the beginning of the year Loans granted during the year Repayments during the year Balance at the end of the year 13. OPERATING FIXED ASSETS Capital work in progress Property and equipment 13.1 Capital work in progress Civil works Equipment and electrical work Advances to suppliers and contractors Advance for computer software Others 1,123 154,980 6,205 162,308 49,652 2,431 2,460 4,114 1,021 59,678 13.1 13.2 162,308 2,560,555 2,722,863 59,678 2,692,025 2,751,703 29,797 85,381 (90,181) 24,997 53,170 (23,373) 29,797
134
Annual Report 2011
13.2
2011 C O S T As at Note 01, 2011 (Rupees '000') (deletions) Transfer (write - offs) 31, 2011 01, 2011 (on deletions) Transfer (write-offs) 31, 2011 31, 2011 January Additions / December as at January year / as at December December As at Accumulated For the Accumulated % per annum DEPRECIATION Net Book Rate of value as at depreciation
Annual Report 2011

336,617 13.2.3 584,330 158,073 242,677 (2,866) 1,361,033 (5,449) 49,959 (835) 756,810 (243) 4,553,955 (9,393) 151,725 (452) 4,695,835 1,861,930 76,949 833,516 520,476 (835) 36,108 (191) 280,538 (7,863) 675 2,135,280 2,560,555 556,393 277,123 10% 4,392 53,516 27,889 8,135 (5,250) 35,189 18,327 20% 62,473 1,418,057 963,450 176,465 720 (452) (1,587) (45) 1,135,385 282,672 10% to 33% 7,911 247,270 112,286 22,481 158,073 33,190 7,661 584,330 189,005 29,688 1,064,456 1,064,456 15,634 15,634 218,693 40,851 133,135 336,617 336,617 1,048,822 365,637 117,222 114,135 5% 5% 10%
Particulars
Freehold land
Leasehold land
Vehicles
13.2.1
Included in cost of property and equipment are fully depreciated items still in use having cost of Rs. 949.233 million (2010: Rs. 748.266 million).
13.2.2
Carrying amount of temporarily idle property is Rs. 891.219 million (2010: Rs. 910.138 million).
13.2.3
This includes a plot of land costing Rs. 361 million in Block-6, KDA Scheme-5, Clifton, Karachi (the Plot), possession of which was taken by the Bank (formerly PICIC) in April 1983 pursuant to an allotment order by City District Government Karachi (CDGK) (formerly Karachi Development Authority). All the legal dues in respect of the Plot including Non-utilization Fees have been paid. In 2000, CDGK cancelled the allotment unilaterally based on certain building and construction restrictions. The Bank filed a Civil Suit against CDGK before the High Court of Sindh in respect of the said unilateral cancellation of the allotment. Meanwhile, also in 2000, a dispute arose with KPT in respect of construction of a boundary wall on the Plot by KPT as KPT claimed that the land had been reverted to KPT. The said claim by KPT was also challenged by way of Civil Suit before the High Court of Sindh. The High Court of Sindh initially issued restraining orders against CDGK and KPT in the respective suits in respect of cancellation of the allotment of the Plot. Subsequently, both the suits were decided in favor of the Bank. In the suit filed against CDGK, the High Court of Sindh held that the action of cancellation of the allotment by CDGK was improper and void, whereas, in the suit against KPT, the High Court of Sindh held that since allotment in favor of the Bank was valid therefore, KPT had no standing to claim that the land had been reverted back to KPT. Both the decisions of the High Court of Sindh are currently being challenged in two separate High Court Appeals by CDGK and KPT and the same are still pending. Furthermore, in November 2008, KPT filed a Civil Suit seeking a declaration from the High Court of Sindh to the effect that the Plot had been validly reverted to KPT. At present, the Bank is actively defending the case.
135
136
2010 C O S T As at January 01, 2010 (Rupees '000') (deletions) Transfer (write - offs) 31, 2010 01, 2010 (on deletions) Transfer (write-offs) 31, 2010 31, 2010 per annum Additions / December as at January year / as at December December % As at Accumulated For the Accumulated Net Book Rate of value as at depreciation DEPRECIATION
Particulars
Freehold land 1,064,456 584,330 158,073 241,795 (5,459) 1,373,042 (5,446) 54,785 (2,533) 957,151 (1,103) 4,770,249 (14,541) (9,998) 191,950 (670) (393,033) 4,553,955 1,798,779 394,062 (805) 1,209 (322,122) 1,861,930 2,692,025 54,762 7,252 (261,252) 756,810 624,343 96,418 1,920 (1,794) (201,400) 520,476 236,334 39 (2,332) 49,959 23,037 8,978 (4,682) (2,332) 27,889 22,070 115,355 (8,747) (113,171) 1,361,033 849,792 229,983 (2,282) (109,361) (2,717) 963,450 21,794 825 (16,278) 242,677 98,859 23,602 1,571 (9,029) 112,286 158,073 25,551 7,639 33,190 584,330 161,563 27,442 189,005 395,325 124,883 130,391 1,064,456 15,634 15,634 1,048,822
336,617
336,617
336,617 5% 5% 10%
Leasehold land
397,583 10% to 33% 20% 10%
Vehicles
13.2.4 Detail of disposal of property and equipment during the year Cost Accumulated Book depreciation value (Rupees '000')
835 835 493 493
Description
Sale proceeds
Mode of disposal
Particulars of buyer
Vehicles 835 835
EX-PICIC SERVICES RULS
TAHSIN AHMED MAHMUDI
Items individually having cost less than Rs.1 million or net book value not exceeding Rs. 0.25 million 2,160 2,866 243 3,289 8,558 9,393 14,541 7,028 7,863 9,998 2,140 1,587 191 3,110 20 1,279 52 178 1,529 1,529 4,543 291 1,857 639 823 3,610 4,103 5,007
Computer Equipment Furniture and fixtures Leasehold improvements Office equipment
2011
Annual Report 2011
2010
14.
2011
C O S T AMORTIZATION / IMPAIRMENT
INTANGIBLE ASSETS
Annual Report 2011

As at January 01, 2011 Additions Transfers Transfers As at December 31, 2011 Accumulated as at January 01, 2011 Amortization for the year Accumulated as at December 31, 2011 Net Book Value as at December 31, 2011 Rate of amortization % per annum
Particulars
(Rupees '000')
2,489,453 124,149 204,116 835,662 1,726,726 5,380,106 7,833 5,387,939 1,232,370 370,534 (720) 1,602,184 3,785,755 1,726,726 1,726,726 Note 6.8 7,833 843,495 223,436 96,705 (720) 319,421 524,074 10% to 50% 204,116 142,883 40,822 183,705 20,411 20% 124,149 73,953 6,693 80,646 43,503 9.09% 2,489,453 792,098 226,314 1,018,412 1,471,041 9.09%
Core Overdraft / Working
Capital Loan Relationships
Brand
Computer Software
Management Rights
14.1 Included in cost of computer software are fully amortized items still in use having cost of Rs. 102.952 million (2010: Rs. 88.359 million).
2010
C O S T AMORTIZATION / IMPAIRMENT
Particulars
As at January 01, 2010 Additions Transfers Adjustments (Write offs)
As at Accumulated Amortization December as at January for the 31, 2010 01, 2010 year Transfers
Adjustments
Accumulated as at December (Write offs) 31, 2010
Net Book Value as at December 31, 2010
Rate of amortization % per annum
(Rupees '000')
25,261,472 2,489,453 124,149 204,116 767,638 1,726,726 30,573,554 95,186 95,186 670 (27,832) 124,149 204,116 835,662 1,726,726 2,489,453 (25,261,472) 1,040,000 565,784 67,260 102,060 128,453 1,903,557 226,314 6,693 40,823 97,889 371,719 (1,209) (1,040,000) (1,209) (1,040,000) (1,697) (1,697) 792,098 73,953 142,883 223,436 1,232,370 1,697,355 50,196 61,233 1,726,726 4,147,736 9.09% 9.09% 20% 612,226 10% to 50% Note 6.8
Goodwill
Core Overdraft / Working
Capital Loan Relationships
Brand
Computer Software
Management Rights
670 (25,261,472) (27,832) 5,380,106
14.2 Goodwill
137
From an accounting perspective, at the time of the acquisition and merger of Pakistan Industrial Credit and Investment Corporation Limited (PICIC) and PICIC Commercial Bank Limited (PCBL) into the Bank, goodwill of Rs. 25,261 million was created on the books of the Bank, which reflected the value that was paid for the PICIC and PCBL shares over the fair value of net assets. It is the Bank's view that it will derive substantial value from businesses, customers and the branch network acquired in the merger with PICIC and PCBL. Under the new strategies, this value will be derived more from the liabilities side of the business as opposed to the assets side. As the original intent of how value would be derived has been changed for now the Bank has decided to adjust the Goodwill that it is carrying on the books in a manner that is consistent with its new business realities. Consequently in 2010, the Bank has adjusted the full amount of the goodwill appearing in its books at Rs. 24,221 million directly into equity and the State Bank of Pakistan has indicated its No Objection to this accounting treatment.
14.3 Annual test for impairment Intangibles In the current year, the Group assessed the recoverable amount of core overdraft / working capital loan relationships, core deposit relationships, brand and management rights. The Group has determined that no impairment loss exists. Note 2011 2010 (Rupees '000') 15. DEFERRED TAX ASSETS Deferred debits arising due to: Provision against loans and advances Provision against other receivables Provision against balances with other banks Gratuity Unused tax losses Intangibles Excess of tax base of government securities / investments over accounting base Deferred credits arising due to: Excess of accounting base of leased asset over tax base Accelerated accounting depreciation on owned assets Fair valuation of subsidiaries and associates Surplus / (Deficit) on revaluation of securities Unrealised exchange gains Unrealised exchange losses 8,880,336 254,851 3,699,934 25,911 430,836 13,291,868 (140,383) (732,089) (568,601) (39,648) (2,377) (33,604) (1,516,702) Deferred tax Assets Unrecognised deffered tax assets Recognised deffered tax assets 15.1 15.1 11,775,166 (817,000) 10,958,166 7,329,965 285,269 1,387 7,488 2,777,890 35,834 325,521 10,763,354 (116,322) (738,372) (532,714) 55,299 (2,377) (33,604) (1,368,090) 9,395,264 9,395,264
15.2 15.3
The deferred tax asset recognised in the books have been restriced to Rs. 10,958.166 million due to uncertainty of availablity of future tax profits for utilization of the unrecognised deferred tax assets. The deductible differences available to the Bank are Rs. 11,775.166 million. Had these been taken completely, the profit after tax would be higher by Rs. 817 million. The management has recorded deferred tax asset based on financial projections indicating realisibility of deferred tax asset over a number of future years through reversals as a result of recoveries from borrowers and realisibility of remaining deferred tax asset against future taxable profits. The financial projections involve certain key assumptions such as deposits composition, interest rates, growth of deposits and advances, investment returns and potential provision / reversals against assets. Any significant change in the key assumptions may have an effect on the realisibility of the deferred tax asset.
15.2
In 1987 and 1989, the Bank (formerly PICIC) exercised its option to avail the exchange risk coverage offered by the Government of Pakistan, Ministry of Finance and Economic Affairs (Economic Affairs Division), through Office Memo 1(16)/50/DM/86 dated July 8, 1987 and 1(12)/50/DM/89 dated June 1, 1989 respectively and, in turn the Bank (formerly PICIC) offered the risk coverage to its Borrowers. The unrealised exchange losses of the Bank (formerly PICIC) as on April 21, 1987, the effective date of exercise of both the options arising on related borrowings as reduced by gains arising on related advances was claimed as loss for tax purposes.
15.3
138
Annual Report 2011
15.4 Movement in temporary differences during the year 2011
Deferred debits arising due to: Provision against loans and advances 7,329,965 Provision against other receivables 285,269 Provision against balances with other banks 1,387 Gratuity 7,488 Unused tax losses 2,777,890 Intangibles 35,834 Excess of tax base of government securities / investments over accounting base 325,521 Deferred credits arising due to: Excess of accounting base of leased asset over tax base Accelerated accounting depreciation on owned assets Fair valuation of subsidiaries and associates Surplus / Deficit on revaluation of securities Unrealised exchange gains Unrealised exchange losses Deferred tax assets Unrecognised deferred tax assets Recognised deferred tax assets
(Rupees '000')
1,550,371 (30,418) (1,387) (7,488) 922,044 (9,923) 105,330
(15)
8,880,336 254,851 3,699,934 25,911 430,836
(116,322) (738,372) (532,714) 55,299 (2,377) (33,604) 9,395,264 9,395,264
(24,061) 6,283 (35,887) 2,474,864 (817,000) 1,657,864 2010
(94,947) (94,962) (94,962)

Recognised in equity / others
(140,383) (732,089) (568,601) (39,648) (2,377) (33,604) 11,775,166 (817,000) 10,958,166
Deferred debits arising due to: Provision against loans and advances 6,393,933 Provision against other receivables 281,314 Provision against balances with other banks 1,387 Gratuity 14,762 Unused tax losses 731,227 Intangibles 60,046 Excess of tax base of government securities / investments over accounting base 350,877 Deferred credits arising due to: Excess of accounting base of leased asset over tax base Accelerated accounting depreciation on owned assets Fair valuation of subsidiaries and associates Surplus / Deficit on revaluation of securities Unrealised exchange gains Unrealised exchange losses Deferred tax assets Unrecognised deferred tax assets Recognised deferred tax assets
(Rupees '000')
1,287,791 3,955 (7,819) 1,694,904 (24,212) (25,371)
(351,759) 545 351,759 15
7,329,965 285,269 1,387 7,488 2,777,890 35,834 325,521
(218,511) (714,195) (521,539) 71,495 (6,007) (33,604) 6,411,185 6,411,185
102,189 (24,177) (11,175) 2,996,085 2,996,085
(16,196) 3,630 (12,006) (12,006)
(116,322) (738,372) (532,714) 55,299 (2,377) (33,604) 9,395,264 9,395,264
Annual Report 2011
139
Note 16. OTHER ASSETS Income / mark-up accrued Local currency Foreign currencies Advances, deposits, advance rent and other prepayments Advance taxation - net Non - banking assets acquired in satisfaction of claims Unrealized gain on forward exchange contracts - net Receivable against sale of investments Stationery and stamps on hand Branch adjustment account Advance for purchase of term finance certificates Assets in respect of Bangladesh Insurance claim Management fee receivable Others Liabilities in respect of Bangladesh Rupee Borrowings from Government of Pakistan in respect of Bangladesh Provisions held against other assets Other assets - net of provisions 2011 2010
(Rupees '000')
16.1 & 16.6 16.2 16.3
16.4
16.4
2,590,768 24,534 419,875 1,301,702 701,067 79,483 2,009 383,856 425,409 16,410 18,643 71,429 6,035,185 (342,416) (82,993) (1,021,625) 4,588,151
3,272,010 29,561 430,162 1,222,471 541,913 18,928 3,279 106,579 285,000 425,409 156,298 2,250 73,895 6,567,755 (342,416) (82,993) (890,883) 5,251,463
16.5
16.1 This includes Rs. 1.024 million (2010: Rs. 1.027 million) in respect of related parties. 16.2 Advances, deposits, advance rent and other prepayments Advances Deposits Advance rent Prepayments
43,515 33,060 252,635 90,665 419,875
41,806 39,534 249,071 99,751 430,162
16.3 Represents cost of land, plant and machinery acquired by the Bank against advances and held for resale. The market value of the subject assets as of December 31, 2011 was Rs. 611.403 million (2010: Rs. 560 million). Provision of Rs. 105.913 million has been made against difference between cost and fair value. 16.4 All the assets and liabilities as of November 30, 1971 clearly identifiable as being in or in respect of the areas now under Bangladesh and referred to above were segregated as of that date and in such segregation, for purposes of conversion of foreign currency amounts, generally speaking, the parity rates ruling prior to August 15, 1971 were used, and all income accrued or due in 1971 but not received in that year and interest accrued but not due on borrowings in 1971 was eliminated. Subsequently, consequent to the assuming by Bangladesh of certain foreign currency loan obligations as of July 1, 1974, including amounts previously identified by the Bank (formerly PICIC) as its foreign currency liabilities in respect of Bangladesh, such amounts were eliminated from the books of the Bank (formerly PICIC) by reducing an equivalent sum from its related foreign assets in that area. Arising from advices received from the lenders and as a result of diversion of shipments and of the meeting of certain contingent liabilities, there have been certain modifications to the foreign currency advances relating to Bangladesh. Furthermore, the difference between the actual amount of rupees required to remit maturities of foreign currency borrowings
140
Annual Report 2011
in respect of Bangladesh and the figures at which they appeared in the books and the interest paid to foreign lenders has been treated as increasing the rupee assets in that area. The Government of Pakistan, while initially agreeing to provide the rupee finance required for discharging current maturities of foreign currency borrowings and interest related to Bangladesh, did not accept any responsibility for PICICs assets in that area. However, following an agreement reached between PICIC and the Government of Pakistan during 1976, the Government has agreed that it would continue to provide the funds for servicing PICICs foreign currency liabilities relating to Bangladesh and has further agreed that an amount equivalent to the rupee assets in Bangladesh financed from PICICs own funds not exceeding Rs. 82 million would be deemed to have been allocated out of the rupee loans by the Government and that such allocated amount together with the rupee finance being provided by the Government including any interest thereon would not be recovered from PICIC until such time as PICIC recovers the related assets from Bangladesh and only to the extent of such recovery. Accordingly, such allocated amounts, together with the rupee finance being provided by the Government for discharging the current maturities of foreign currency borrowings (including the interest and charges thereon and any exchange difference between the final rupee payment and the amount at which the liability, commitment or contingent liability as appearing in the books relating to Bangladesh) have been treated as liabilities in respect of Bangladesh. Further, in view of the aforesaid agreement no interest is being accrued on the allocated amount of rupee loans or in respect of the rupee finance provided by the Government related to PICICs assets in Bangladesh nor is it considered necessary to provide for any loss that may arise in respect of PICICs assets in Bangladesh.
Note 16.5 Particulars of provisions held against other assets Opening balance Charge for the year Reversals Write offs Closing balance
2011
2010
(Rupees '000') 890,883 192,211 (15,610) (45,859) 1,021,625 823,598 67,316 (31) 890,883
16.6 This includes a sum of Rs. 30.466 million (2010: Rs. 30.466 million) representing unrealised exchange gain, which has not been recognised as income and deferred in the financial statements, in accordance with the policy of the Bank, as stated in note 6.16. 2011 2010 (Rupees '000') 17. BILLS PAYABLE In Pakistan Outside Pakistan 1,660,205 78,217 1,738,422 18. BORROWINGS In Pakistan Outside Pakistan 47,262,148 119,883 47,382,031 18.1 Particulars of borrowings with respect to currencies In local currency In foreign currencies 47,262,148 119,883 47,382,031 42,320,085 41,849 42,361,934 42,320,085 41,849 42,361,934 1,266,884 68,609 1,335,493
Annual Report 2011
141
Note 18.2 Details of borrowings - secured / unsecured Secured Borrowings from SBP under Export Refinance Scheme Long Term Financing Facility Long Term Finance for Export Oriented Projects Repurchase agreement borrowings Unsecured Call borrowings Overdrawn nostro accounts Foreign borrowings payable in local currency Trading liabilities 2011 2010
(Rupees '000')
18.3 18.4 18.5 18.6 & 18.6.1
8,122,798 416,857 1,197,381 37,350,826
10,956,241 261,962 1,683,880 22,869,493
18.7 18.8
12,000 119,883 162,286 47,382,031
6,059,036 41,849 162,286 327,187 42,361,934
18.3 Borrowings from SBP under Export Refinance Scheme are subject to mark-up at rate of 10% (2010: 8.50% to 9.00%) per annum maturing within six months. 18.4 Borrowings from SBP under Long Term Financing Facility (LTFF) are subject to mark up ranging from 6.50% to 8.20% (2010: 6.50% to 8.20%) per annum maturing within ten years. 18.5 Borrowings from SBP under Long Term Finance for Export Oriented Projects are subject to mark up ranging from 4.90% to 5.00% (2010: 4.00% to 5.00%) per annum maturing within five years. 18.6 These borrowings are subject to mark-up at rates ranging from 11.63% to 11.90% (2010: 12.51% to 13.90%) per annum maturing within sixteen days. Government securities have been given as collateral against these borrowings. 18.6.1 This includes Rs. 100 million outstanding as at December 31, 2011, which was borrowed from a Company in 2004 against pledge of a PIB. As the lender had failed to return the pledged PIB upon the maturity of the contract period, this amount is appearing as a pending transaction with a corresponding amount appearing as investment in PIBs. No interest is accrued either as expense on this borrowing or as income from the PIB since the filing of the dispute between the Bank and the Company. 18.7 These borrowings are subject to mark-up at rate of 11.25% (2010: 12.15% to 13.40% ) per annum with remaining maturity of three days. 18.8 The Government of Pakistan (GoP) has claimed an amount of Rs. 162.286 million in respect of liabilities against German credit representing principal amount of loan and Rs. 45.444 million as interest thereon till June 30, 2006. The principal amount has been accounted for and shown as payable to the GoP whereas interest has been accounted for in Other Liabilities (note 20). However, the Bank is contending that any amount of principal and interest is payable to the GoP only when recovered from the related sub-borrowers, who have availed the German credit. This also includes unrealized exchange loss of Rs. 96.011 million (2010: Rs. 96.011 million) which has been netted off against unrealized exchange gain (note 16) as it is payable when recovered from sub-borrowers, who have availed the related German credit. 2011 2010 19. DEPOSITS AND OTHER ACCOUNTS (Rupees '000') Customers Fixed deposits Savings deposits Current accounts - Non remunerative Margin accounts Financial institutions Remunerative deposits Non-remunerative deposits 32,769,500 26,112,772 25,169,484 568,088 606,032 246,371 85,472,247 39,939,138 29,087,951 24,120,456 532,237 5,104,496 327,463 99,111,741
142
Annual Report 2011
2011 19.1 Particulars of deposits In local currency In foreign currencies 80,468,716 5,003,531 85,472,247 20. SUB-ORDINATED LOANS Term Finance Certificates - Quoted, Unsecured Mark-up Subordination Issue Date Issue Amount Rating Tenor Redemption 3,994,400 3,996,000 93,122,184 5,989,557 99,111,741 2010 (Rupees '000')
Floating (no floor, no cap) rate of return at Base Rate +1.15% [The Base Rate is defined as the average Ask Side rate of the six month Karachi Interbank Offered Rate (KIBOR)] The TFCs are subordinated to all other indebtedness of the Bank including deposits March 5, 2008 Rs. 4,000 million A+ (A plus) 8 years from the Issue Date Ten equal semi-annual instalments of 0.02% of the Issue Amount for the first sixty months followed by six equal semi-annual instalments of 16.63% of the Issue Amount from the sixtysixth month onwards March 5, 2016 The Bank can also exercise a Call Option or a Partial Call Option after obtaining written approval from the State Bank of Pakistan at any time after a period of sixty months from the Issue Date Note 2011 2010
Maturity Call Option
21.
OTHER LIABILITIES Mark-up / return / interest payable in: Local currency Foreign currencies Unearned income on inland bills Accrued expenses Insurance premium payable Advance from lessees Unclaimed dividend Borrowing from Government of Pakistan Branch adjustment account Unrealized exchange loss - net Security and other deposits Payable to IBRD - Managed Fund Payable against purchase of investments Payable to Workers Welfare Fund Payable to defined benefit plan Security deposits against lease Others
(Rupees '000')
35.5 & 35.9
817,085 4,571 638,781 33,143 155,343 44,965 2,095 23,333 25,846 68,220 2,198 15,972 77,515 528,493 136,681 2,574,241
1,304,830 11,167 10,135 1,020,516 55,371 135,850 45,051 2,095 43,386 29,408 68,220 18,443 18,073 77,671 754,435 272,307 3,866,958
Annual Report 2011
143
22. SHARE CAPITAL
22.1 Authorized 2011 2010 2011 2010
Number of shares 12,000,000,000 5,000,000,000 Ordinary shares of Rs. 10 each
(Rupees 000) 120,000,000 50,000,000
22.2 Issued, subscribed and paid up Fully paid up ordinary shares of Rs. 10 each 3,278,902,659 3,278,902,659 Fully paid in cash Issued for consideration other than cash (under schemes of amalgamation) Issuance of shares on discount 32,789,027 32,789,027
764,824,417 6,259,124,088 10,302,851,164
764,824,417 4,043,727,076
7,648,244 62,591,241 103,028,512
7,648,244 40,437,271
22.2.1 The holding Company Bugis Investments (Mauritius) Pte. Limited holds 9,132,728,598 (December 31, 2010: 2,995,744,425) ordinary shares.
(Number of shares)
22.2.2 Reconciliation of number of ordinary shares of Rs. 10 each
At the beginning of the year Right issue during the year at discount At the end of the year
4,043,727,076 6,259,124,088 10,302,851,164 2011
4,043,727,076 4,043,727,076 2010
(Rupees 000)
23. DEFICIT ON REVALUATION OF ASSETS - NET
Deficit on revaluation of available-for-sale securities Market Treasury Bills Pakistan Investment Bonds Term Finance Certificates Mutual Funds Investment in Shares of Listed Companies Share of deficit on revaluation of securities of associates Related deferred tax asset / (liability) 119,439 (39,243) 24,738 1,263 25,885 132,082 (572,029) (439,947) (39,648) (479,595) (56,558) (184,648) 6,157 36,545 143,882 (54,622) (360,301) (414,923) 55,299 (359,624)
144
Annual Report 2011
2011 2010 (Rupees 000) 24. CONTINGENCIES AND COMMITMENTS
24.1 Direct credit substitutes Contingent liability in respect of guarantees given favouring: Government Others 24.2 Transaction-related contingent liabilities / commitments Guarantees given in favour of: Government Financial Institutions Others 10,782,678 92,000 514,510 11,389,188 8,138,146 500,856 714,525 9,353,527 63,116 63,116
24.3 Trade-related contingent liabilities Letters of credit Acceptances 24.4 Other contingencies Claims against the Bank not acknowledged as debts 24.5 Commitments in respect of forward lending Commitments to extend credit 1,034,140 314,372 266,133 390,783 11,720,785 2,253,467 13,974,252 7,919,441 1,067,720 8,987,161
The Bank makes commitments to extend credit in the normal course of its business but none of these commitments are irrevocable and do not attract any significant penalty or expense if the facility is ultimately withdrawn except commitments mentioned above. 24.6 Commitments in respect of forward exchange contracts Purchase Sale 56,859,837 58,787,111 115,646,948 24.7 Commitments for the acquisition of operating fixed assets 24.8 Commitments in respect of derivatives Forward Purchase of Government Securities Forward Sale of Government Securities 487,600 47,683 44,008 66,004,625 67,312,030 133,316,655 86,310
Annual Report 2011
145
24.9 Tax contingencies The tax returns of income of NIB Bank Limited have been filed up to and including tax year 2011 relevant to the financial year ended December 31, 2010. The tax authorities have made certain disallowances including additions on account of proration of expenses against dividends and capital gains, disallowances of interest and administrative expenses and renovation expenses incurred on rented premises (allowed historically) pertaining to tax years 2003 through 2008 for Ex-Pakistan Industrial Credit and Investment Corporation Limited (Ex-PICIC), from tax years 2004 through 2008 for Ex-PICIC Commercial Bank Limited (Ex-PCBL), tax years 2003 and 2004 for Ex-National Development Leasing Corporation Limited (Ex-NDLC) and from tax years 2004 through 2008 for NIB Bank Limited. These disallowances may result in additional tax aggregating to Rs. 1,370 million (2010: 1,370 million), which the management of the Bank in discussion with their tax consultants believes to be unjustified and not in accordance with the true interpretation of the law. Appeals filed against orders are pending at various appellate forums. Management is confident that the eventual outcome of the cases will be in favour of the Bank. 2011 2010 (Rupees 000) 25. MARK-UP / RETURN / INTEREST EARNED On loans and advances to customers On investments in: Available-for-sale securities Held-to-maturity securities On deposits with financial institutions On securities purchased under resale agreements On call money lendings 7,718,970 4,980,398 463,751 5,073 989,740 92,189 14,250,121 10,219,090 4,595,211 463,487 10,947 1,094,491 99,541 16,482,767
26.
MARK-UP / RETURN / INTEREST EXPENSED Deposits and other accounts Securities sold under repurchase agreements Other short term borrowings Long term borrowings 6,937,345 3,023,491 1,506,903 687,874 12,155,613 7,159,606 3,342,862 2,312,127 652,931 13,467,526
27.
GAIN ON SALE OF SECURITIES Market Treasury Bills Pakistan Investment Bonds Term Finance Certificates Ordinary shares of Listed Companies Units / Certificates of Mutual Funds Others 163,928 29,846 6,378 8,924 43,612 20,456 273,144 (5,359) (8,185) 15,088 292,514 5,415 8,068 307,541
146
Annual Report 2011
Note 2011 2010
(Rupees '000')
28.
OTHER INCOME Gain on disposal of property and equipment Service charges Rent income Gain on trading liabilties Income from non-banking assets and profit from sale of / or dealing with such assets Others 2,574 7,007 3,274 9,999 22,854 464 10,654 3,262 3,417 10,551 28,348
29.
ADMINISTRATIVE EXPENSES Salaries, allowances, etc. Charge for defined benefit plan 35.4 & 35.9 Contribution to defined contribution plan Non-executive directors' fees, allowances and other expenses Brokerage and commission Rent, taxes, insurance, electricity, etc. Legal and professional charges Communications Repairs and maintenance Stationery and printing Advertisement and publicity Fees and subscriptions Auditors' remuneration 29.1 Depreciation 13.2 Amortization 14 Travelling, conveyance and vehicles running Security services Fixed assets written off Others 2,123,187 25,633 83,552 10,547 52,190 886,309 70,683 163,215 281,306 69,174 70,885 84,077 9,335 280,538 370,534 34,156 120,188 88,073 4,823,582 5,057 750 1,100 1,752 676 9,335 3,766,972 26,054 123,298 7,239 44,530 974,062 204,108 212,092 286,185 82,568 27,605 77,687 8,837 394,062 371,719 33,522 137,628 159,676 117,980 7,055,824 4,936 750 1,100 1,375 676 8,837
29.1 Auditors' remuneration Audit fee including fee for branch audit Audit fee of consolidated financial statements Review fee Special certifications and sundry advisory services Out-of-pocket expenses
29.2 No donation was paid during the year in which any of the Directors or their spouses had any interest. 30. OTHER CHARGES Penalties imposed by the State Bank of Pakistan Others 56,122 (13,625) 42,497 135,126 (13,208) 121,918
Annual Report 2011
147
Note 2011 2010
(Rupees '000') 31. TAXATION For the year Current Prior years Deferred
202,619 30,658 (1,657,864) (1,424,587)
228,733 385,655 (2,996,630) (2,382,242)
31.1 Relationship between tax expense and accounting profit Accounting profit / (loss) for the year Tax @ 35% of above SBP penalty not tax deductible Adjustment in respect of tax at reduced rate Consumer & SME provision in excess of 5% booked in June 2011 instead of December 2010 Unrecorded deferred tax asset due to uncertainity over availability of future tax profits General provision reversal not recognized for tax purposes Minimum tax based on turnover independent of loss Tax charge for prior year Effect of exempt income Others Tax charge for the year (3,492,009) (1,222,203) 19,643 5,651 (1,085,172) 817,000 (234,478) 163,978 30,658 (41,322) 121,658 (1,424,587) (12,089,002) (4,231,151) 47,294 (8,900) 1,085,172 _ 279,583 181,974 385,655 _ (121,869) (2,382,242)
32.
BASIC / DILUTED EARNINGS / (LOSS) PER SHARE Loss after taxation (Rs. in '000') Weighted average number of ordinary shares outstanding during the year (in '000') Loss per share - basic / diluted (Rupees) (2,067,422) (9,706,760)
5,998,632 (0.34)
4,043,727 (2.40)
33.
CASH AND CASH EQUIVALENTS Cash and balances with treasury banks Balances with other banks 8 9 7,969,044 1,486,560 9,455,604 8,836,474 2,952,593 11,789,067
34.
STAFF STRENGTH
(Numbers)
Permanent Temporary / on contractual basis Group's own staff strength at the end of the year Outsourced Total staff strength
2,338 34 2,372 346 2,718
2,891 38 2,929 713 3,642
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Annual Report 2011
35. DEFINED BENEFIT PLAN
35.1 The benefits under the gratuity scheme are payable in lumpsum on retirement at the age of 60 years or earlier cessation of services. The benefit is equal to one month's last drawn basic salary of each year of confirmed service, subject to a minimum of five years of service. 35.2 Principal actuarial assumptions The actuarial valuation is carried out periodically. The actuarial valuation was carried out for the year ended December 31, 2011 using the "Projected Unit Credit Method". The main assumptions used for actuarial valuation are as follows: Gratuity 2011 - Valuation discount rate - Salary increase rate - Mortality rate - Withdrawal rate
Note 35.3 Reconciliation of (receivable from) / payable to defined benefit plan Present value of defined benefit obligations Unrecognized prior service cost Net actuarial gains/(loss) not recognized Assumed on amalgamation Net liability / (receivable) 35.4 (Income) / charge for defined benefit plan Current service cost Software project expense capitalized Interest cost Actuarial (gain) recognized Amortisation of prior service cost
2010
13.0% 14.5% 12.0% 13.5% Based on LIC 1975-79 Ultimate Mortality table Heavy (double of moderate) Age - Wise withdrawal rates
2011 2010 2009 (Rupees '000') 2008 2007
35.6
71,098 6,181 77,279 77,279 11,626 11,568 23,194
79,459 (3,344) 76,115 76,115 14,660 10,067 24,727
81,502 (7,771) 73,731 73,731 13,962 (829) 6,398 (1,630) 17,901
58,963 1,630 (3,536) 57,057 57,057 10,922 3,834 (303) (1,631) 12,822
33,919 3,261 7,326 44,506 (76,634) (32,128) 10,808 2,751 (281) (1,631) 11,647
35.5 Movement in balance (receivable) / payable Opening balance Adjustment Expense recognized Software project expense capitalized Benefits paid to outgoing members Assumed on amalgamation Closing balance 35.6 Summary of valuation results for the current and previous periods Present value of defined benefit obligations Fair value of plan assets Deficit Experience (gain) / loss on obligation
76,115 1,386 23,194 (23,416) 77,279 77,279
73,731 24,727 (22,343) 76,115 76,115
57,057 17,901 829 (2,056) 73,731 73,731
(32,128) 12,822 (271) (19,577) 76,634 57,057
32,859 11,647 44,506 (76,634) (32,128)
71,098 71,098 (8,139)
79,459 79,459 (4,427)
81,502 81,502 4,235
58,963 58,963 10,559
33,919 33,919 (1,749)
Annual Report 2011
149
2011 2010
(Rupees '000')
35.7 Reconciliation of present value of defined benefit obligations

Opening balance Current service cost Interest cost Benefits paid Actuarial loss on obligations Closing balance 79,459 11,626 11,568 (23,416) (8,139) 71,098 81,502 14,660 10,067 (22,343) (4,427) 79,459
35.8 Expected contribution for the next one year The Bank provides for gratuity as per the actuary's expected charge for the next one year. Based on actuarial advice, management estimates that the charge in respect of the defined benefit plan for the year ending December 31, 2012 would be Rs. 18.390 million. 35.9 PICIC AMC terminated its approved funded gratuity scheme for all its permanent employees on 31 December, 2010. The termination liability was calculated on the basis of the actuarial valuation carried out for this purpose in December 2010 using the Projected Unit Credit Cost Method.Termination Liability is the benefit payable as at the valuation date based on the service & salary as at the date of valuation. 36. DEFINED CONTRIBUTION PLAN The Group has established a provident fund scheme administered by the Board of Trustees for all permanent employees. Equal monthly contributions are made to the Fund by both the Group and the employees @ 10% of basic salary. 37. COMPENSATION OF DIRECTORS AND EXECUTIVES
President / Chief Executive 2011 2010 Directors 2011 2010 Executives 2011 2010
(Rupees '000')
Fees Managerial remuneration Charge for defined benefit plan Contribution to defined contribution plan Rent and house maintenance Utilities Others
24,726 2,924 2,192 5,850 1,671 30,205 67,568
24,619 2,461 2,180 6,097 1,742 1,995 39,094 2
8,952 8,952 7
7,239 7,239 7
480,725 9,711 43,986 159,706 45,630 272,648 1,012,406 526
804,474 14,142 57,554 218,355 62,387 63,924 1,220,836 712
Number of persons
*3
*Includes interim President and Chief Executive Officer of the Bank for 15 days in 2011. The Presidents / Chief Executives are provided with free use of Bank maintained cars, travel and medical insurance, security arrangements and reimbursements of household utilities, as per terms of their employment. The Chief Executive and certain Executives of PICIC AMC are provided with free use of Company maintained cars. The Chief Executive of PICIC AMC has also been provided with a house loan, duly approved by the SECP. Directors fees are paid to non executive directors only.
150
Annual Report 2011
38. FAIR VALUE OF FINANCIAL INSTRUMENTS
38.1 On-balance sheet financial instruments 2011 Book value Fair value Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Other assets 7,969,044 1,486,560 7,969,044 1,486,560 8,836,474 2,952,593 6,429,166 8,836,474 2,952,593 6,428,069 48,217,093 74,583,584 3,454,611 2010 Book value Fair value
(Rupees '000')
14,666,918 14,669,815
47,786,041 47,233,525 50,209,083 60,861,513 60,861,513 74,583,584 2,826,196 2,826,196 3,454,611
135,596,272 135,046,653 146,465,511 144,472,424
Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities 1,738,422 1,738,422 1,335,493 1,335,493 42,359,713 99,111,741 3,889,706 3,621,795
47,382,031 47,382,076 42,361,934 85,472,247 85,472,247 99,111,741 3,994,400 2,414,227 3,914,796 2,414,227 3,996,000 3,621,795
141,001,327 140,921,768 150,426,963 150,318,448 38.2 Off-balance sheet financial instruments Forward purchase of foreign exchange Forward sale of foreign exchange 56,859,837 57,548,407 66,004,625 65,049,598 58,787,111 59,591,144 67,312,030 66,429,843
Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable willing parties in an arms length transaction. Fair values of held-to-maturity securities, sub-ordinated loans and investment in quoted associates have been stated at market values. Fair value of unquoted equity securities have been stated at the lower of cost and Net Assets Value as per the latest available audited financial statements. Except for investment in unquoted subsidiaries, fixed term advances of over one year, staff loans and fixed term deposits of over one year, the fair value of other on balance sheet financial assets and liabilities are not significantly different from their book value as these assets and liabilities are either short term in nature or are frequently repriced. The fair value of unquoted subsidiaries, fixed term advances, staff loans, fixed term deposits, other assets and other liabilities cannot be calculated with sufficient reliability due to non-availability of relevant active markets for similar assets and liabilities.
Annual Report 2011
151
39. SEGMENT DETAILS WITH RESPECT TO BUSINESS ACTIVITIES The Group comprises the Bank, PICIC Asset Management Company and PICIC Stock Fund. The Bank is organised into reportable segments as disclosed in note 6.20.1. These segments are managed by respective segment heads and the results of these segments are regularly reviewed by the Group's President / Chief Executive. Segment performance is reviewed on the basis of various factors including profit before taxation. The performance of the PICIC Asset Management Company and PICIC Stock Fund is included in Head Office / Others. Transactions between reportable segments are carried out on an arms length basis. The segment analysis with respect to business activity is as follows:
Corporate and Investment Banking Small & Medium Enterprises and Commercial Retail Treasury Head Office / Other *Adjustments
(Rupees '000')
Net Interest Income Non Funded Income including share of income of associates Net Interest and non mark-up Income Total expenses including provisions (excluding Impairment) Impairment against Investment Total expenses including provisions Segment Net income/ (loss) before tax Segment Return on net assets (ROA) (%) Segment Cost of funds (%)
(605,465) 374,158 (231,307)
(621,777) 135,492 (486,285)
3,515,414 350,450 3,865,864
(387,463) 839,833 452,370
193,799 328,229 522,028
799,676 52,703 852,379 (1,083,686) (1.69%) 11.97%
886,360 886,360 (1,372,645) (3.84%) 6.76%
5,405,275 5,405,275 (1,539,411) (1.22%) 6.62%
173,981 118,721 292,702 159,668 0.19% 13.44%
170,474 7,489 177,963 344,065
N/A N/A
Net Interest Income Non Funded Income including share of income of associates Net Interest and non markup Income Total expenses including provisions (excluding Impairment) Impairment against Investment Total expenses including provisions Segment Net income / (loss) before tax Segment Return on net assets (ROA) (%) Segment Cost of funds (%)
(198,579) 320,382 121,803 2,738,512 2,738,512 (2,616,709) (3.36%) 11.50%
(215,919) 183,957 (31,962) 5,080,278 5,080,278 (5,112,240) (13.35%) 6.64%
3,771,921 306,493 4,078,414 7,648,615 7,648,615 (3,570,201) (2.80%) 6.24%
(248,521) 673,585 425,064 166,708 115,134 281,842 143,222 0.22% 12.47%
(93,661) 789,317 695,656 1,628,730 1,628,730 (933,074)
N/A N/A
56,637,592 18,006,713 14,965,673 41,671,919 40,802,879
30,116,978 12,234,822 6,876,818 23,240,160 22,740,530
83,809,168 3,725,523 1,589,256 82,219,912 80,501,374
53,507,148 53,507,148 53,091,254
10,400,733 227,524 195,951 10,204,782 44,214
(56,018,910) (56,018,910) (56,018,910)
65,288,984 18,814,492 14,712,848 50,576,136 46,112,224
31,301,155 10,795,340 6,415,309 24,885,846 23,016,713
85,301,088 4,904,273 2,524,598 82,776,490 79,530,605
42,382,391 42,382,391 41,401,559
8,481,575 197,363 125,784 8,355,791 5,030,613
(44,419,588) (44,419,588) (44,419,588)
* The respective segment assets and liabilities incorporate intersegment lending and borrowing, with appropriate transfer pricing. The adjustments column eliminates intersegment lending and borrowing.
152
Annual Report 2011
40.
RELATED PARTY TRANSACTIONS
The Group has related party transactions with its holding company (refer note 1), unconsolidated subsidiary, (refer note 11.12), associated undertakings (refer note 11.11), employee benefit plans (refer note 35), and its key management personnel.
Transactions with related parties are executed on the same terms as those prevailing at the time for comparable transactions with unrelated parties.
Annual Report 2011

Holding company Unconsolidated subsidiary 2011 2010 2011 2010 2011 2010 2011 Associates Key management personnel 2011 2010 Other related parties 2010
The detail of transactions with related parties is given below:
(Rupees '000')
40.1 Balances outstanding as at the year end
Advances 136,387 58,669 (41,993) 119,711 172,906 63,918 (117,113) 119,711 29,797 85,381 (90,181) 24,997 53,170 (23,373) 29,797
At the beginning of the year
Addition during the year Repaid during the year
Deposits 58,350 12 1,042 (16,751) 42,653 626 117

738
At the beginning of the year 381 (8,336) 58,350 724 724 724 724 298,751 4,102,774 4,439,221 (4,389,000) (587,007) 3,565,988 23,677 29,676,785
66,305
543,226
1,135,995 15,952,374 (200,972) 543,226 3,052,301 1,142,799 (153,879) (213,729) 275,282 4,102,774 6,425
50,000
23,898 274,917 (256,043) 42,772
7,781 294,683 23,898
308,875 4,099 106,047 151,815 145,740 (138,669) 158,886 1,102,224 928

354
262,462 7,558,714 5,064,335 (278,566) (7,765,641) (5,017,922) 308,875 184,146 7,286 (39,617) 151,815 978,687 5,891 354
Deposits during the year
Exchange difference
Withdrawal during the year
(29,921,260) (16,344,171)
NAFA Funds ceased to be associates
Investment in shares / mutual funds - cost
At the beginning of the year
Investments made during the year
Investments sold during the year
NAFA Funds ceased to be associates
Equity accounting method adjustments
Investment in Term Finance Certificates-cost
Receivables
Insurance claim receivable
Payables
153
154
Holding company Unconsolidated subsidiary 2011 (Rupees '000') 2010 2011 2010 2011 2010 2011 2010 Associates Key management personnel Other related parties 2011 2010
Brokerage payable At the end of the year _ 6,352,360 4,691 4,691 49
104 174 49,950 _
Payable to Directors At the end of the year
Insurance premium payable At the end of the year
Sub-ordinated loans At the end of the year
40.2 Income / expense for the year

2,834 3,418 426,572 2,112 267,660 126,254 _ 102,446 62,313 2,267 262,640 5,676 659 171,537 6,573 770 210 166,276 2,296 85,788 171,638 3,657 1,482 8,952 127 85,285 3,703 2,240 48,849 91,251 3,675 3,131 7,239 184 116,988 6,862
Markup / return / interest earned on advances
Markup / return / interest expensed on deposits
Markup / return / interest earned on Term Finance Certificates
Dividend income from Shares / Mutual Funds
Brokerage expense
Directors remuneration
Directors travelling expense
Insurance premium expense
Remuneration to key management personnel
Contribution to Provident Fund
Mark-up expense on subordinated loans
Annual Report 2011
Management fee earned
41. CAPITAL-ASSESSMENT AND ADEQUACY
41.1 Scope of Application

Capital Adequacy Ratio (CAR) has been calculated in accordance with the guidelines given by SBP through BSD Circular No. 8 dated June 27, 2006. The Bank has adopted Standardized Approach for Credit and Market Risk and Basic Indicator Approach for Operational Risk. The current requirement for CAR is 10% as per BSD Circular No. 07 dated April 15, 2009. 41.2 Capital Structure The Group's regulatory capital base comprises of: (a) Tier I capital which includes share capital, reserves and accumulated losses / unappropriated profit (b) Tier II capital which consists of sub-ordinated loans (subject to 50% of eligible Tier 1 capital), revaluation reserves (subject to 45% of balance in revaluation reserve) and general provision for loan losses (subject to 1.25% of Risk Weighted Assets) The issued, subscribed and paid-up capital of the Bank was Rs. 103,028.512 million as at December 31, 2011, comprising of 10,302,851,164 shares of Rs. 10 each. The sub-ordinated debt amounting to Rs. 3,994.200 million represents unsecured TFCs of the Bank. The amount raised through the issue contributed towards the Bank's Tier II capital for Minimum Capital Requirement as per the guidelines of SBP.
Details of the Group's regulatory capital are as under:

2011 Tier I Capital Fully paid-up capital Non-controlling interest Share premium Advance against proposed rights issue Statutory and general reserves Accumulated loss Less: Goodwill Deficit on account of revaluation of investments held in AFS category Investments in TFCs of other banks exceeding the prescribed limit Other deductions (representing 50% of significant associates) Total Tier I Capital Tier II Capital Sub-ordinated debt (up to 50% of total Tier I Capital) General Provision for loan losses (subject to 1.25% of Total Risk Weighted Assets) Less: Other deductions (representing 50% of significant associates) Total Tier II Capital Total Regulatory Capital Base (a) 2010
(Rupees '000') 103,028,512 40,437,271 9 (45,769,623) 8,246,618 6,352,360 218,276 218,276 (43,333,909) (41,009,961) 14,143,265 14,244,564 3,785,754 479,595 637,811 9,240,105 4,147,736 359,624 844,565 8,892,639
3,195,520 282,139
3,946,000 952,076
637,811 2,839,848 12,079,953
844,565 4,053,511 12,946,150
Annual Report 2011
155
41.3 Capital Adequacy The purpose of capital management at the Group is to ensure efficient utilization of capital in relation to business requirements, growth, risk appetite, shareholders' returns and expectations. The Group manages its capital structure and makes adjustments to it in the light of changes in economic conditions, regulatory requirements and the risk profile of its activities. In order to maintain or adjust the capital structure, the Bank may issue capital / Tier II securities. The Groups capital adequacy ratio as at December 31, 2011 was 13.00% compared to the minimum regulatory requirement of 10%. The Group ensures adherence to SBP's requirements by monitoring its capital adequacy on a regular basis. Banking operations are categorised as either Trading book or Banking book, and Risk-Weighted Assets are determined according to SBP requirements that seek to reflect the varying levels of risk attached to Groups On and Off-balance sheet exposures. Collateral, if any, is used as an outflow adjustment. Risk weights notified are applied to Net Adjusted Exposure. Cash and near cash collateral includes Government of Pakistan securities, shares listed on the stock exchanges, cash and cash equivalents (deposits / margins, lien on deposits). The Group has complied with all regulatory capital requirements during the year. The capital requirement for the Bank as per the major risk categories is indicated below:
Capital Requirements 2011 2010 Risk Weighted Assets 2011 2010
(Rupees '000')
Credit Risk Corporate Sovereign Retail Banks Equity Investments Public sector Entities Past Due Loans Claims against Residential Mortgage Investments in premises, plant and equipment and all other fixed assets Other assets Off Balance Sheet Market Related Exposures Market Risk Interest Rate Risk Equity Position Risk Foreign Exchange Risk Operational Risk TOTAL (b)
2,951,635 3,252 906,121 463,919 301,439 23,069 1,140,635 58,914 275,193 1,282,182 82,312 7,488,671 666,044 46,848 4,908 717,800 1,088,282 9,294,753
3,123,936 15,981 1,336,148 297,608 264,042 63,230 1,120,452 62,833 278,443 1,076,497 56,528 7,695,698 372,617 239,567 118,058 730,242 1,200,662 9,626,602
29,516,351 32,522 9,061,214 4,639,188 3,014,390 230,685 11,406,353 589,140 2,751,930 12,821,825 823,124 74,886,722 6,660,436 468,481 49,081 7,177,998 10,882,821
31,239,360 159,811 13,361,478 2,976,082 2,640,417 632,296 11,204,520 628,330 2,784,432 10,764,965 565,284 76,956,975 3,726,166 2,395,668 1,180,579 7,302,413 12,006,624
92,947,541 96,266,012
2011 2010 (Rupees '000')
Capital Adequacy Ratio Total eligible regulatory capital held Total Risk Weighted Assets Capital Adequacy Ratio
(a) / (b)
12,079,953 92,947,541 13.00%
12,946,150 96,266,012 13.45%
156
Annual Report 2011
41.4 Types of Exposures and ECAIs used The Group uses external ratings from local and foreign rating agencies. The Group has obtained ratings from websites of External Credit Assessment Institutions (ECAIs) and followed the SBP rating grade for mapping.
Exposures Corporate Sovereign Retail Banks
JCR-VIS
PACRA
Fitch
Moodys
Standard & Poor
41.5 Credit exposure subject to Standardized Approach

2011 (Rupees '000') Exposure Rating Category 1 2 3,4 5,6 Unrated Amount Outstanding 3,928,061 855,131 57,524 564,509 29,443,393 15,101,439 Deduction CRM 84,168 5,846 1,996,578 3,019,820 Net Amount 3,928,061 770,963 51,678 564,509 27,446,815 12,081,619
Corporate Corporate Corporate Corporate Corporate Retail Banks - Over 3 Months - Over 3 Months - Over 3 Months - Over 3 Months - Maturity Upto and under 3 Months in FCY - Maturity Upto and under 3 Months in FCY - Maturity Upto and under 3 Months in FCY - Maturity Upto and under 3 Months in FCY - Maturity Upto and under 3 Months in PKR Public Sector Entities Sovereign Unrated Total
1 2,3 4,5 Unrated 1,2,3 4,5 6 Unrated 1 1 Unrated
1,126,052 5,731,756 110,805 764,726 2,584,486 623,303 14,324,826 464,537 21,833,880 32,896,498 130,410,926
746,128 10,392,640 3,921 6,577,909 22,827,010
1,126,052 4,985,628 110,805 764,726 2,584,486 _ _ 623,303 3,932,186 _ 460,616 15,255,971 32,896,498 107,583,916
Annual Report 2011
157
42. RISK MANAGEMENT While the overall responsibility of risk management rests with the Board of Directors, the Banks senior management has implemented a risk management framework with well defined policies and procedures, duly approved by the Board, for mitigating, monitoring and controlling risks. The Board of Directors of the Bank has approved the risk management strategy of the Bank and entrusted the monitoring to the Boards Risk Management Committee (BRMC). The Integrated Risk Management Committee (IRMC) is responsible for reviewing and highlighting key risk issues that require senior managements attention. IRMC comprises of members from business units and the risk functions. An enterprise level assessment of risk composition is made at this platform and where necessary, recommendations are made to improve upon processes and procedures to further strengthen the risk framework. Risk management heads for the business segments report to the Chief Risk Officer (CRO). The risk management heads are responsible for ensuring the implementation of the Banks risk framework in their respective domains in line with the business model of the Bank and also in compliance with SBP guidelines. The Bank also conducts stress testing analysis across portfolios, by anticipating changes and applying shocks of different intensity values, thereby evaluating their effects on the value of the portfolios. 42.1 Credit Risk Credit risk is the risk of failure by a client or counterparty to meet its contractual obligations. It is inherent in loans, commitments to lend and contingent liabilities, such as letters of credit, repurchase agreements (repos and reverse repos) and securities borrowing and lending transactions. The objective of credit risk management by the Bank is to ensure that the risk of default by a client or counterparty is reduced to a minimum, keeping in view the risk management policies of the Bank. The Bank has established an appropriate credit risk environment which is operating under a sound credit-granting process, maintaining an appropriate credit administration, measurement and monitoring process and ensuring adequate controls. There is a proper credit delegation matrix for review and approving credit applications. Businesses have no credit approving authority. All credit approvals are accorded by the Credit Officers/ Senior Credit Officers in the Risk Management Group. The concept of three initial system is very much in existence in NIB. Based upon regional considerations and availability of Credit Talent, any initiating unit has to have formal recommendation by the Relationship Manager, his/ her Team Leader and Regional Head/ Corporate Banking Head/ Group Head. The essence here is that the credit proposal must not be left to the sole judgement of one person rather, the application of minds must be diverse and independent of each other. Following are the basic guiding principles of credit risk management that are embedded in the Bank and across business segments: - Clearly defined risk management policies and procedures covering risk identification, acceptance, measurement, monitoring, reporting and control. - A well constituted organizational structure clearly defining roles and responsibilities of individuals involved in taking as well as managing risk. - An effective management information system that ensures flow of information from the operational level to top management and a system to address any exceptions observed. - An effective mechanism to ensure an ongoing review of systems, policies and procedures for risk management and procedures to adopt changes. - Review of portfolios by BRMC on a quarterly basis and by IRMC on a monthly basis to evaluate the health of the portfolio.
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42.1.1 Segmental Information 42.1.1.1 Segments by class of business
Advances (Gross) (Rupees Percent '000')
Agriculture, Forestry, Hunting and Fishing Automobile and Transportation Equipment Cement, Glass and Ceramics Chemicals and Pharmaceuticals Construction Electronics and Electrical Appliances Engineering Exports / Imports Financial Food and Beverages Footwear and Leather Garments Individuals Insurance Mining and Quarrying Non Profit Organizations / Trusts Oil and Gas Paper and Printing Power, Gas, Water, Sanitary Services Sugar Textile Transport, Storage and Communication Wholesale and Retail Trade Others 1,412,649 1,071,826 3,681,480 1,549,328 747,419 1,423,754 803,083 2,601,689 339,481 9,281,750 969,835 5,242,744 201,117 150,109 356,729 1,667,620 3,317,982 3,170,753 1,751,338 29,112,151 2,299,449 6,928,934 6,407,991 84,489,211 1.67 1.27 4.36 1.83 0.88 1.69 0.95 3.08 0.40 10.99 1.15 6.21 0.24 0.18 0.42 1.97 3.93 3.75 2.07 34.46 2.72 8.20 7.58 100.00
2011 Deposits (Rupees Percent '000')

522,373 303,484 314,589 1,132,720 1,356,196 378,021 358,519 1,242,681 1,219,177 905,194 161,793 50,230,839 181,272 512,451 2,970,314 4,897,690 398,860 2,923,427 2,885,736 15,968 1,432,811 2,894,337 3,563,664 4,670,131 85,472,247 0.61 0.36 0.37 1.33 1.59 0.43 0.42 1.45 1.43 1.06 0.19 58.77 0.20 0.60 3.48 5.73 0.47 3.42 3.38 0.02 1.68 3.39 4.16 5.46 100.00
Contingencies and commitments (Rupees Percent '000')

509,041 623,896 1,422,465 1,133,506 183,186 907,756 7,632,261 116,443,027 1,095,774 16,037 350,774 200 97,239 20,495 3,038 591,285 677,548 294,068 22,239 6,420,856 1,436,027 1,300,123 1,709,111 142,889,952 0.36 0.44 1.00 0.79 0.13 0.64 5.34 81.49 0.77 0.01 0.25 0.00 0.07 0.01 0.00 0.41 0.47 0.21 0.02 4.49 1.00 0.90 1.20 100.00
2010
Agriculture, Forestry, Hunting and Fishing Automobile and Transportation Equipment Cement, Glass and Ceramics Chemicals and Pharmaceuticals Construction Electronics and Electrical Appliances Engineering Exports / Imports Financial Food and Beverages Footwear and Leather Garments Individuals Insurance Mining and Quarrying Non Profit Organizations / Trusts Oil and Gas Paper and Printing Power, Gas, Water, Sanitary Services Sugar Textile Transport, Storage and Communication Wholesale and Retail Trade Others 2,127,690 1,221,195 3,575,306 2,070,425 905,621 1,925,757 593,436 2,639,680 520,367 9,819,615 1,055,048 7,880,845 244,304 150,659 2,396,384 1,644,292 2,606,707 4,549,830 1,828,795 30,938,690 2,480,832 9,519,320 7,667,325 98,362,123 2.16 1.24 3.63 2.10 0.92 1.96 0.60 2.69 0.53 9.99 1.07 8.02 0.25 0.15 2.44 1.67 2.65 4.63 1.86 31.45 2.52 9.68 7.79 100.00 431,118 935,411 60,977 4,099,027 1,173,911 377,179 457,706 667,950 6,339,414 659,112 115,638 47,530,178 259.553 1,928,351 2,872,553 3,048,037 423,663 4,255,100 2,988,233 35,553 783,430 8,921,680 2,530,102 8,217,865 99,111,741 0.43 0.94 0.06 4.14 1.18 0.38 0.46 0.67 6.40 0.67 0.12 47.96 0.26 1.95 2.90 3.08 0.43 4.29 3.02 0.04 0.79 9.00 2.54 8.29 100.00 _ 108,042 675,470 1,531,219 555,261 273,257 1,215,419 378,194 130,811,534 1,081,074 34,616 344,781 74,453 1,875 2,416,949 320,503 828,234 521,661 2,049 7,553,526 992,311 1,323,278 1,468,218 152,511,924 _ 0.07 0.44 1.00 0.36 0.18 0.80 0.25 85.77 0.71 0.02 0.23 0.05 0.00 1.59 0.21 0.54 0.34 0.00 4.95 0.65 0.88 0.96 100.00
Annual Report 2011
159
42.1.1.2 Segment by sector
Public / Government Private 6,578,083 77,911,128 84,489,211
Deposits (Rupees '000')

9,414,316 76,057,931 85,472,247
Contingencies and commitments (Rupees '000')

2,911 142,887,041 142,889,952
Percent
Percent
Percent
7.79 92.21 100.00
11.01 88.99 100.00
0.00 100.00 100.00
2010
Public / Government Private 10,904,387 87,457,736 98,362,123 11.09 88.91 100.00 12,069,277 87,042,464 99,111,741 12.18 87.82 100.00 3,076,217 149,435,707 152,511,924 2.02 97.98 100.00
42.1.1.3 Details of non-performing advances and specific provisions by class of business segment
2011 Classified Advances Specific Provisions Held
15,113 515,344 1,081,681 332,600 103,144 432,233 233,381 96,802 719,393 305,942 313,897 2,117 299,634 387,008 459,239 801,684 626,387 11,761,058 665,971 1,824,453 2,368,478 23,345,559
2010 Classified Advances Specific Provisions Held

15,513 436,401 938,969 198,010 133,472 307,383 121,485 73,066 756,651 268,207 826,009 34,819 328,832 358,062 371,953 1,096,966 816,713 8,620,131 807,245 3,962,528 2,354,048 22,826,463
(Rupees '000')
Agriculture, Forestry, Hunting and Fishing Automobile and Transportation Equipment Cement, Glass and Ceramics Chemicals and Pharmaceuticals Construction Electronics and Electrical Appliances Engineering Financial Food and Beverages Footwear and Leather Garments Individuals Mining and Quarrying Oil and Gas Paper and Printing Power, Gas, Water and Sanitary Services Sugar Textile Transport, Storage and Communication Wholesale and Retail Trade Others 22,993 588,843 1,277,320 519,527 482,431 703,056 424,258 129,982 1,217,777 418,458 566,960 33,602 327,474 561,452 664,656 1,907,961 772,799 14,675,438 888,606 3,887,070 4,123,919 34,194,582 54,049 466,555 1,339,892 314,336 426,022 515,794 270,381 182,079 1,060,392 340,708 1,778,291 48,493 359,101 591,339 646,083 2,131,558 1,272,914 11,212,276 1,070,183 6,041,388 4,589,634 34,711,468
42.1.1.4 Details of non-performing advances and specific provisions by sector

Public / Government Private 34,194,582 34,194,582 23,345,559 23,345,559 34,711,468 34,711,468 22,826,463 22,826,463
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Annual Report 2011
2011
(3,492,009)
154,825,011
2010
13,663,670
142,889,952
(12,089,002) 42.2 Market Risk
164,557,066
13,884,940
152,511,924
Market risk is primarily composed of price risk and arises out of treasury trading and investment activities. It is the risk that the value of on and off balance sheet positions of the Bank will be adversely affected by movements in market rates or prices. The Bank recognizes that it may be exposed to market risk in a variety of ways. Market risk exposure may be explicit in the portfolio of equities and foreign currencies that are actively traded. Conversely, it may be implicit, such as interest rate risk due to mismatch of loans and deposits. Market risk may also arise from activities categorized as off balance sheet items. 42.2.1 Foreign Exchange Risk Foreign exchange risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. The core objective of foreign exchange risk management is to ensure that the exposure of the Bank remains within desired levels of risk appetite. Furthermore, the Bank monitors Value at Risk (VaR) and Price Value Basis Point (PVBP) for the foreign exchange portfolio in order to estimate any potential losses due to changes in price. The Bank also monitors maturity mismatch gaps to identify any potential risks. The Bank has implemented global / regulatory best practices in order to manage the inherent risk of product and market, such as credit limits, monitoring of foreign exchange exposure limits, review of mark to market portfolio etc. 2011
Pakistan Rupee United States Dollar Great Britain Pound Euro Japanese Yen Swiss Franc Others
147,276,666 6,944,197 153,964 417,779 12,560 1,865 17,980 154,825,011
135,953,080 3,820,292 833,552 543,650 22 787 9,958 141,161,341
1,927,274 (2,750,296) 679,752 143,270
13,250,860 373,609 164 17,399 12,538 1,078 8,022 13,663,670
Annual Report 2011
161
2010
Pakistan Rupee United States Dollar Great Britain Pound Euro Japanese Yen Swiss Franc Others
155,592,435 8,032,243 221,540 671,042 18,618 5,569 15,619 164,557,066
144,560,745 4,234,598 1,018,965 848,178 12 752 8,876 150,672,126
1,307,404 (2,322,995) 843,190 172,401
12,339,094 1,474,650 45,765 (4,735) 18,606 4,817 6,743 13,884,940
42.2.2 Equity price risk and Fixed Income rate risk The Bank has a set of approved notional & dealer limits for managing risk across the trading & banking book. Furthermore Bank has also established sensitivity base limit (DVO1) for monitoring treasury portfolio. In order to manage the market risk in the trading book, the Bank periodically applies a VaR methodology to assess the market risk positions held. Currently the Bank is using variance covariance model for calculating VaR across both the equity & fixed income portfolios. Equity Price Risk is the risk to earnings or capital that results from adverse changes in the value of equity related portfolios of the Bank. Price risk associated with equities could be systemic or idiosyncratic. The Bank is also using Market Risk tools such as Alpha, Beta and Sharpe ratio for risk measurement and assessment. Fixed income securities are subject to the risk of price volatility due to interest rate movements. Fixed rate debt securities with longer maturities tend to be more sensitive to interest rate movements than those with shorter maturities. The Bank is using Market Risk tools such as PVBP, Duration, Parallel shift and Non Parallel shift for risk measurement and assessment.
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Annual Report 2011
42.2.3 Mismatch of Interest Rate Sensitive Assets and Liabilities

2011 Exposed to Yield / Interest rate risk Effective Yield / Interest rate Total (Rupees '000') Upto 1 Month Over 10 Years Over 1 to 3 Months Over 3 to 6 Months Over 6 Months to 1 Year Over 1 to 2 Years Over 2 to 3 Years Over 3 to 5 Years Over 5 to 10 Years Not Eposed to Yield / Interest rate risk
Annual Report 2011

0.00%
7,969,044 1,486,560 14,666,918 47,786,041 60,861,513 2,826,196 135,596,272 25,867,242 35,234,064 7,999,816 28,883,190 8,585,845 98,856 5,418,079 9,814,266 35,122,399 5,099,365 1,406,197 2,798,537 2,420,189 752,974 12,809 2,900,451 27,476,993 5,787,308 2,997,890 14,666,918 2,424,316 2,437,230 4,861,546 633,084 1,001,623 1,088,540 2,090,163 674,790 674,790 7,969,044 853,476 4,431,677 2,727,340 15,981,537
Assets 0.03% 12.99% 10.82% 11.73% 14.60%
Cash and balances with treasury banks
Investments
Advances
Other assets
Liabilities _
1,738,422 47,382,031 85,472,247 3,994,400 2,414,227 141,001,327 (5,405,055) 19,068,725 13,663,670 (24,262,819) (8,836,113) 173,308 50,130,061 44,070,177 7,826,508 3,994,400 6,838,057 22,045,133 12,367,279 35,355,725 4,695,641 6,838,057 37,762,782 4,720,052 3,130,867 52,996 189,706 242,702 8,343,143 480,371 27,486 507,857 4,910,222 822,527 14,295 836,822 4,024,724 412,436 115 412,551 1,677,612 674,790 1,738,422 25,983,943 2,414,227 30,136,592 (14,155,055)
Bills payable 11.58% 7.54% 14.63% _
Borrowings
Sub-ordinated loans
Other liabilities
Total Net Assets
Off-balance sheet financial instruments

56,859,837 58,787,111 (1,927,274) (4,283,993) (28,546,812) 19,683,105 15,399,112 23,141,924 15,321,080 7,820,844 (1,015,269) 17,755,251 23,782,926 (6,027,675) (5,854,367) 563,550 563,550 22,608,683 8,343,143 (12,807,765) (4,464,622) 4,910,222 445,600 4,024,724 4,470,324 1,677,612 674,790 6,147,936 6,822,726 (14,155,055) (7,332,329)
(28,546,812) (29,562,081) (35,416,448)
163
164
2010 Exposed to Yield / Interest rate risk Effective Yield / Interest rate Total (Rupees '000') Upto 1 Month Over 10 Years Over 1 to 3 Months Over 3 to 6 Months Over 6 Months to 1 Year Over 1 to 2 Years Over 2 to 3 Years Over 3 to 5 Years Over 5 to 10 Years Not Exposed to Yield/ Interest rate risk
On-balance sheet financial instruments 0.00% 0.00% 12.11% 10.10% 12.31% 0.00% 146,465,511 20,447,207 74,666,943 10,766,318 7,923,828 3,766,724 5,446,056 3,606,569 8,836,474 2,952,593 6,429,166 50,209,083 74,583,584 3,454,611 2,642,636 5,650,258 1,261,164 10,893,149 778,908 24,445,215 49,442,820 6,438,990 4,327,328 6,227,196 1,696,632 889,674 2.877,050 3,235,181 2,210,875 1,704,227 1,902,342 289,342 711,978 1,001,320 306,563 521,410 8,836,474 309,957 5,411,531 3,454,611 827,973 18,012,573
Assets
Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Other assets
Liabilities 11.46% 7.58% 13.72% 150,426,963 (3,961,452) (19,035,973) 17,846,392 13,884,340 50,314,401 (34,397,286)
(1,449,679)
Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities 39,483,180 24,352,542 45,163,604 9,373,507 682,464 3,084,260
1,335,493 42,361,934 99,111,741 3,996,000 3,621,795
28,563,313 10,880,127 39,740
7,513,257 16,839,285
4,468,556 36,699,048 3,996,000
200,912 9,172,595
376,794 305,670
329,268 215,272 544,540 4,901,516
656,699 18,589 675,288 2,931,281
253,135 134 253,269 748,051
1,335,493 24,981,021 3,582,055 29,898,569 827,973 (11,885,996)
Total Net Assets
Off-balance sheet financial instruments 66,004,625 67,312,030 (1,307,405) (23,743,807) (23,743,807) (4,707,834) (2,436,148) 28,820,121 24,938,063 24,112,287 22,501,915 17,536,494 13,553,846 3,982,648 1,853,929 1,853,929 404,250 (6,280,192) 3,084,260 (5,875,942) (2,791,682) 4,901,516 2,109,834 2,931,281 5,041,115 748,051 5,789,166 827,973 (11,885,996) 6,617,139 (5,268,857)
47,878,253 (30,414,638) 24,134,446
Annual Report 2011
42.3
Liquidity Risk
Liquidity risk exposure is the risk caused, among others, by the inability of the Group to settle its liabilities on their due dates.
The Group objective of liquidity management is to ensure that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses.
The liquidity risk policy is formulated keeping in view SBP's guidelines on risk management and international best practices. The Group maintains its liquidity by keeping a level of liquid assets that is considered sufficient to settle its obligations when due.
Annual Report 2011

2011 Total (Rupees '000')
7,969,044 1,486,560 14,666,918 47,786,041 60,861,513 2,722,863 3,785,755 10,958,166 4,588,151 154,825,011 61,315,169 12,485,402 6,205,249 138,923 2,202,507 85,299 (57,921) (64,576) (16,418) 183,536 1,311,619 30,820,893 41,240 82,461 123,690 226,902 21,353 198,486 60,939 106,821 35,563,728 9,372,938 5,099,365 1,406,196 1,485,324 693,586 852,374 27,585,819 14,666,918 5,974,198 2,798,537 175,348 326,953 915,391 772,413 10,962,840 1,486,560 7,969,044 3,080,127 2,420,189 144,920 315,316 1,526,863 28,011 7,515,426 3,399,644 2,437,230 189,145 575,072 3,552,319 48,555 10,201,965 2,315,463 1,076,871 270,688 493,495 4,918,972 824 9,076,313 2,399,506 686,459 1,555,163 1,600,626 6,241,754
The Group manages its liquidity risk through
Controlling the cash flow mismatch between on- and off-balance sheet assets and liabilities;
Maintaining stable and diversified sources of funding;
Ensuring the Group has the right asset portfolio mix and sufficient liquid assets on hand in relation to its daily cash flows.
The Group carries out careful monitoring and control of the daily liquidity position, and regular liquidity stress testing under a variety of scenarios. Scenarios encompass both normal and stressed market conditions, including general market crises and the possibility that access to markets could be impacted by a stress event affecting some part of the Group's business. Exposure to liquidity risk is also monitored through regular review of liquidity risk limits and escalation of any liquidity risk limit excesses to senior management.
42.3.1 Maturities of assets and liabilities - Based on contractual maturity of the Assets and Liabilities of the Group
Upto 1 Month
Over 1 to 3 Months
Over 3 to 6 Months
Over 6 Months to 1 Year
Over 1 to 2 Years
Over 2 to 3 Years
Over 3 to 5 Years
Over 5 to 10 Years
Over 10 Years
Assets
Investments
Advances
Operating fixed assets
Intangible assets
Deferred tax assets
Other assets
Liabilities 1,738,422 47,382,031 85,472,247 3,994,400 2,574,241 141,161,341 13,663,670 103,028,512 218,276 (45,769,623) (43,333,909) (44,179,092) 105,494,261 1,067,009 931,975 14,433,727 (1,948,325) 800 64,926,047 8,780,900 37,762,783 4,720,052 1,738,422 3,130,866 4,695,641 206,400 8,032,907 (1,827,658) 6,838,057 800 253,873 7,092,730 23,728,163 52,996 189,706 666,136 35,335 944,173 10,018,667 480,371 27,486 1,330,672 2,370 1,840,899 5,674,527 822,527 14,295 1,995,992 2,832,814 7,369,151 412,436 115 77,279 489,830 8,586,483 6,241,754
Bills payable
Borrowings
Sub-ordinated loans
Other liabilities
Net assets
Share capital Reserves Discount on issue of shares Accumulated loss
Total equity attributable to the equity holders of the Bank 14,143,256
Non-controlling interest
165
Deficit on revaluation of assets-net
9 14,143,265 (479,595) 13,663,670
166
2010 Total Upto 1 Month Over 1 to 3 Months Over 3 to 6 Months Over 6 Months to 1 Year Over 1 to 2 Years Over 2 to 3 Years Over 3 to 5 Years Over 5 to 10 Years Over 10 Years
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (Rupees '000') - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
The above maturity profile has been prepared in accordance with International Financial Reporting Standard 7, Financial Instruments: Disclosures, based on contractual maturities. Consequently, all demand assets and liabilities such as running finance, current accounts and saving accounts are shown as having a maturity upto one month. However, based on historical behaviour, management is of the opinion that the possibility of these inflows / outflows actually occurring entirely within one month is remote, as these flows normally occur over a period of one month to three years.
Assets 8,836,474 2,952,593 6,429,166 50,209,083 74,583,584 2,751,703 4,147,736 9,395,264 5,251,463 164,557,066 1,335,493 42,361,934 99,111,741 3,996,000 3,866,958 150,672,126 13,884,940 40,437,271 8,464,894 (41,009,961) 7,892,204 6,352,360 14,244,564 (359,624) 13,884,940 (35,463,486) 12,225,245 (921,642) (351,671) 100,767,455 25,881,528 7,796,675 9,953,946 1,235,148 1,528,186 401,424 579,639 800 800 69,633,501 16,839,285 2,926,695 9,172,595 305,670 1,600 28,664 712,728 5,821,346 28,563,313 7,513,257 4,468,556 200,912 376,794 1,335,493 65,303,969 38,106,773 6,875,033 9,602,275 6,534,074 411,861 3,320,894 181,177 118,042 324,464 297,119 9,023,798 329,268 215,272 666,200 15,412 1,226,152 7,797,646 42,219 84,432 126,648 168,087 374,940 501,292 41,378 82,754 123,971 246,966 472,456 325,115 23,461 97,101 73,812 125,311 203,835 153,842 46,084,562 8,575,339 4,830,123 2,581,342 4,035,876 3,436,860 3,349,207 220,908 600,033 2,512,240 583,235 11,634,496 656,699 18,589 2,661,300 2,370 3,338,958 8,295,538 1,261,163 25,167,345 1,539,302 6,362,527 1,122,503 4,309,570 4,368,873 5,650,258 778,908 2,952,593 8,836,474 1,642,224 1,020,533 264,604 780,537 6,188,468 11,971 9,908,337 253,135 134 665,300 76,115 994,684 8,913,653 4,435,576 669,742 1,588,829 1,474,526 (603,062) 2,700 7,568,311 7,568,311
Investments
Advances
Intangible assets
Deferred tax assets
Other assets
Liabilities
Bills payable
Borrowings
Sub-ordinated loans
Other liabilities
Net assets
Share capital
Reserves
Accumulated loss
Total equity attributable to the equity holders of the bank
Annual Report 2011
The above maturity profile has been prepared in accordance with International Financial Reporting Standard 7, Financial Instruments: Disclosures, based on contractual maturities. Consequently, all demand assets and liabilities such as running finance, current accounts and saving accounts are shown as having a maturity upto one month. However, based on historical behaviour, management is of the opinion that the possibility of these inflows / outflows actually occurring entirely within one month is remote, as these flows normally occur over a period of one month to three years.
42.3.2 Maturities of Assets and Liabilities - Based on historical pattern of the Assets and Liabilities of the Group
2011 Total Upto 1 Month Over 1 to 3 Months Over 3 to 6 Months Over 6 Months to 1 Year Over 1 to 2 Years Over 2 to 3 Years Over 3 to 5 Years Over 5 to 10 Years Over 10 Years
Annual Report 2011

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (Rupees '000') - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Assets 7,969,044 1,486,560 14,666,918 47,786,041 60,861,513 2,722,863 3,785,755 10,958,166 4,588,151 154,825,011 1,738,422 47,382,031 85,472,247 3,994,400 2,574,241 141,161,341 13,663,670 103,028,512 218,276 (45,769,623) (43,333,909) 14,143,256 9 14,143,265 (479,595) 13,663,670 (25,246,197) (3,682,783) (13,105,245) 41,649,110 62,898,504 16,712,396 19,744,628 11,856,300 1,067,009 931,975 206,400 253,873 800 800 22,330,290 11,059,569 16,407,362 11,601,627 4,950,229 666,136 35,335 5,704,696 5,258,144 37,762,783 4,720,052 3,130,866 52,996 1,738,422 37,652,307 13,029,613 6,639,383 53,505,410 10,962,840 138,923 2,202,507 85,299 1,311,619 772,413 28,011 7,515,426 480,371 4,791,056 1,330,672 2,370 6,604,469 910,957 (57,921) (64,576) (16,418) 183,536 915,391 1,526,863 41,240 82,461 123,690 226,902 326,953 315,316 21,353 198,486 60,939 106,821 175,348 144,920 11,900,866 9,917,149 5,533,499 24,090,713 2,798,537 2,420,189 2,437,230 189,145 575,072 3,552,319 48,555 10,201,965 822,527 4,782,219 1,995,992 7,600,738 2,601,227 1,485,324 693,586 852,374 27,585,819 5,974,198 3,080,127 3,399,644 14,666,918 1,486,560 7,969,044 2,315,463 1,076,871 270,688 493,495 4,918,972 824 9,076,313 412,436 4,772,392 77,279 5,262,107 3,814,206 2,399,506 686,459 1,555,163 1,600,626 6,241,754 4,777,503 4,777,503 1,464,251
Investments
Advances
Intangible assets
Deferred tax assets
Other assets
Liabilities
Bills payable
Borrowings
Sub-ordinated loans
Other liabilities
Net assets
Share capital
Reserves
Discount on issue of shares
Accumulated loss
Total equity attributable to the equity holders of the bank
Non-controlling interest
167
168
2010 Total Upto 1 Month Over 1 to 3 Months Over 10 Years Over 3 to 6 Months Over 6 Months to 1 Year Over 1 to 2 Years Over 2 to 3 Years Over 3 to 5 Years Over 5 to 10 Years
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (Rupees '000') - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Assets 8,836,474 2,952,593 6,429,166 50,209,083 74,583,584 2,751,703 4,147,736 9,395,264 5,251,463 164,557,066 1,335,493 42,361,934 99,111,741 3,996,000 3,866,958 150,672,126 13,884,940 40,437,271 8,464,894 (41,009,961) 7,892,204 6,352,360 14,244,564 (359,624) 13,884,940 (32,013,984) 10,184,392 7,746,376 14,692,516 57,151,710 28,227,484 19,059,227 14,840,329 1,235,148 1,528,186 401,424 579,639 800 800 1,600 28,664 5,511,428 1,022,646 26,017,756 19,185,241 14,189,247 14,058,978 5,104,370 28,563,313 7,513,257 4,468,556 200,912 376,794 1,335,493 329,268 5,101,656 666,200 15,412 6,112,536 2,911,262 25,137,726 38,411,876 26,805,603 29,532,845 6,534,074 9,023,798 411,861 3,320,894 181,177 118,042 324,464 297,119 42,219 84,432 126,648 168,087 374,940 501,292 41,378 82,754 123,971 246,966 472,456 325,115 23,461 97,101 73,812 125,311 203,835 153,842 220,908 600,033 2,512,240 583,235 11,634,496 656,699 5,030,233 2,661,300 2,370 8,350,602 3,283,894 5,918,319 8,880,442 24,760,693 22,511,912 4,035,876 3,436,860 3,349,207 1,261,163 25,167,345 1,539,302 6,362,527 1,122,503 4,309,570 4,368,873 5,650,258 778,908 2,952,593 1,642,224 1,020,533 264,604 780,537 6,188,468 11,971 9,908,337 253,135 5,137,040 665,300 76,115 6,131,590 3,776,747 8,836,474 4,435,576 669,742 1,588,829 1,474,526 (603,062) 2,700 7,568,311 5,287,220 5,287,220 2,281,091
Investments
Advances
Intangible assets
Deferred tax assets
Other assets
Liabilities
Bills payable
Borrowings
Sub-ordinated loans
Other liabilities
Net assets
Share capital
Reserves
Accumulated loss
Total equity attributable to the equity holders
of the bank
Annual Report 2011
42.4 Operational Risk Management Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. The Bank seeks to ensure that key operational risks are managed in a timely and effective manner through a framework of policies, procedures and tools to identify, assess, monitor, control and report such risks. The key objectives of Operational Risk measurement and management include: Ensuring continued solvency of the Bank through capital adequacy and enhanced understanding and management of significant operational risk exposures. Ensuring that customer impact is minimized through proactive and focused risk management practices. Ensuring senior management attention on significant operational risk exposure areas and that risk mitigation is given prioritized focus.
The IRMC has the responsibility to supervise and direct the management of operational risks and key operational risk exposures. The IRMC is also responsible for ensuring that adequate and appropriate policies and procedures are in place for the identification, assessment, monitoring, control and reporting of operational risks. The Bank has undertaken the following high-level strategic initiatives for the effective implementation of Operational Risk Management: 43. Developing policies, procedures and defining end to end information flow to establish a vigorous governance infrastructure. Putting in place risk and control self assessment framework across the bank. Collection of Operational Loss data across the bank and take remedial / corrective action as required.
DATE OF AUTHORIZATION FOR ISSUE These consolidated financial statements were authorized for issue on February 22, 2012 by the Board of Directors of the Bank.
Badar Kazmi

Chairman / Director
Tejpal Singh Hora

Director

Director
Annual Report 2011
169
(Rupees '000')
ZULFIQAR AHMED 32202-2514989-9 MOHAMMAD ABBAS 703 60 763 703 60 -
Annexure - 1
763
S.No.
NIC No.
ZULFIQAR AHMED HOUSE # B-441, 1ST FLOOR, PEOPLE COLONY, BLOCK N, NORTH NAZIMABAD, KARACHI. ZEESHAN AHMED QURESHI 42201-2054225-7 MUHAMMAD HANIF 836 488 1,324 836 488
ZEESHAN AHMED QURESHI HOUSE NO 706/219, FATIMAH JINNAH COLONY, JAMSHED ROAD NO 3, KARACHI. ZAFAR IQBAL CHUDARY 35201-1322748-1 CHUDARY MUHAMMAD RAFIQ 594 98 692 594
1,324
ZAFAR IQBAL CHUDARY HOUSE NO 35/1, STREET NO 1, CROWN PARK, BAGHBAN PURA, LAHORE. TOUQEER IQBAL 36302-5874120-1 MUHAMMAD IQBAL JAWAID 667 110 777 667
98
692
TOUQEER IQBAL H NO 524, WARD NO 8 H MOHALA HAKEEMON WAL INSIDE HARM GATE, MULTAN. SHER MUHAMMAD 35201-3903886-5 NADIR KHAN 530 44 574
110
777
SHER MUHAMMAD House # 8/A, STREET # 3, SHAHEEN PARK, MUGHAL PURA, LAHORE. SHABAB ALI SHEIKH 37402-7515167-1 SHEIKH MUHAMMAD SALEEM 942 157 1,099
530
44
574
SHABAB ALI SHEIKH HOUSE # 692, STREET 100-A I-10/4, ISLAMABAD. SADIA RASHEED 42301-4740346-6 SARDAR ABDUL RASHEED 588 52 -
942
157
1,099
SADIA RASHEED FLAT NO. 104, BEST HOMES, BLOCK-2, CLIFTON, KARACHI. 31202-4365671-3 SHER MUHAMMAD 698 61
640
588
52
640
RANA KHALID MEHMOOD RANA KHALID MEHMOOD RANA KHALID MEHMOOD BACK SIDE ABBAS GOODS TRANSPORT, MULTAN ROAD, BASTI BINDRA, BAHAWALPUR. RAJA JAWAID SULTAN 42101-3099261-1 RAJA MUHAMMAD INAYAT KHAN 1,124
759
698
61
759
RAJA JAWAID SULTAN HOUSE NO. R-739, AL NOOR SOCIETY, BLOCK-19, FEDERAL B. AREA, KARACHI. RAFIQ QASIM ALI 42101-1645106-3 QASIM ALI
186
1,310
1,124
186
1,310
10
RAFIQ QASIM ALI FLAT NO. L 7 3 E 1, GULSHAN E KARIM, NAZIMABAD, KARACHI. NAVEED AHMED 35202-2648398-5 CH GHULAM HUSSAIN
942
157
1,099
942
157
1,099
11
NAVEED AHMED HOUSE NUMBER 170/B, SECTOR ARMY OFFICER HOUSING SOCIETY, ASKARI-10, AIRPORT, LAHORE. NAEEM UDDIN 42201-3576503-9 WAHEED UDDIN
1,155
181
1,336
1,155
181
1,336
12
NAEEM UDDIN HOUSE NO. 69-L, BLOCK-2, P.E.C.H.S., KARACHI. NAEEM AHMED 37301-7260054-9
504
307
811
504
307
811
13
NAEEM AHMED HOUSE NO. C-424, BILAL TOWN, JHELUM. NADEEM YASEEN SHANAWAR 35102-5630501-7
SHEIKH GHULAM AHMED
1,313
210
1,523
1,313
210
1,523
14
NADEEM YASEEN SHANAWAR HOUSE NO. 19, S-93 STREET, MIAN SKENDAR MAIN BAZAR ROAD, KOT KASUR, KASUR. NADEEM NISAR AHMED
MUHAMMAD YASEEN
1,488
794
2,282
1,488
794
2,282
15
NADEEM NISAR AHMED FLAT NO. A-97, ERUM GARDEN, BLOCK 13/D-3, GULSHAN-E-IQBAL, KARACHI.
42201-6070613-7
NISAR AHMED
636
104
740
636
104
740
16
NADEEM NADEEM PLOT NO. 137/3, FLAT NO. B-514, 5TH FLOOR. OWN PARADISE APPARTMENT, GARDEN WEST, KARACHI. MUSHTAQ ALI
42301-1647265-5
MUHAMMAD ISMAIL
675
129
804
675
129
804
17
MUSHTAQ ALI HOUSE # 303, ZANAB BLOCK-B, 3RD FLOOR, ZAINBIYA SAKOON BUILDING, NUMAISH, KARACHI.
42201-0639447-7
BARKAT ALI
645
106
751
645
106
751
Annual Report 2011

MUHAMMAD YOUSUF SHEIKH
18
MUHAMMAD YOUSUF SHEIKH FLAT # C 114, AL MUSTAFA PRIDE, 1ST FLOOR , BLOCK C-P/T-L-2/31, AL MUSTAFA PIDE, REHMAT MASJID STREET, KARACHI.
42301-6944454-9
MEHMOOD SHEIKH JI
576
92
668
576
92
668
(Rupees '000')
MUHAMMAD SOHAIL KHAN 42101-1788809-9 MUHAMMAD SHARIF KHAN 674 112 786 674 112
Annual Report 2011

-
Annexure - 1
S.No.
NIC No.
Total
786
19
MUHAMMAD SOHAIL KHAN HOUSE # C-6-A, FIRDOS COLONY, LIAQUATABAD TOWN, GULBAHAR, KARACHI. 35202-1359856-7 MUHAMMAD AKBAR BUTT 979 158 1,137 979 158
20
MUHAMMAD SHOAIB BUTT MUHAMMAD SHOAIB BUTT HOUSE NO. 177, STREET NO. 8, BS SHARIF PARK, OUT FALL ROAD, USMAN ROAD, SANAT NAGAR, LAHORE. MUHAMMAD SALEEM 42201-0550983-1 MUHAMMAD SHARIF 890 147 1,037 890
1,137
21
MUHAMMAD SALEEM HOUSE # 30/1, STREET-19, MODEL COLONY, KARACHI. MUHAMMAD NAEEM 42201-7197677-5 ALI MUHAMMAD 1,124 186 1,310
147
1,037
22
MUHAMMAD NAEEM HOUSE NO. Q-190, Q AREA, KORANGI NO. 2, KARACHI. MUHAMMAD MUNAAF 42101-2381014-1 ABDUL SATTAR 850 140 990
1,124
186
1,310
23
MUHAMMAD MUNAAF HOUSE NO. 151, BANTWA NAGAR, SIR SULEMAN SHAH ROAD, LIAQATABAD, KARACHI. MUHAMMAD IRSHAD 35404-1531747-3 WALI MUHAMMAD 824 119 -
850
140
990
24
MUHAMMAD IRSHAD TOKRIYAN WALA BAZAR, SHEIKHPURA. MUHAMMAD AMIN 42101-8735231-9 MUHAMMAD MOOSA 846 136
943
824
119
943
25
MUHAMMAD AMIN FLAT NO. 409, SILANI CENTRE, BARAR SOCIETY, KARACHI. MOHSIN ZAFAR 35202-9475154-7 MUHAMMAD AZAM ZAFAR 1,226
982
846
136
982
26
MOHSIN ZAFAR HOUSE # 1, ZAFAR MANZIL, STREET # 3, BUSHRA ZAFAR STREET, OPPOSITE WAPDA OFFICE, MAIN BAZAR SANDA KALAN SECTOR 85, LAHORE. MOHAMMAD RIZWAN AHMED KHAN 42201-5543652-5 IRFAN AHMED KHAN
217
1,443
1,226
217
1,443
27
MOHAMMAD RIZWAN AHMED KHAN HOUSE NO. 001/VI, BILLYS TERRACE, BLOCK 10-A, GULSHAN-E-IQBAL, KARACHI. MOHAMMAD ANIS KHAN 42201-6711711-1
1,450
235
1,685
1,450
235
1,685
28
MOHAMMAD ANIS KHAN HOUSE NO. 53, SECTOR 35/B, KORANGI NO. 4, KARACHI. MOHAMMAD JAVED 42301-5600855-9
MUHAMMAD NAFOOS KHAN
850
140
990
850
140
990
29
MOHAMMAD JAVED FLAT # G-1, GROUND FLOOR, SEVEN STAR PRIDE, ISLAM GANJ, GARDEN WEST, KARACHI. MOHAMMAD IRFAN 42201-0436254-7
MOHAMMAD YOUSUF
526
77
603
526
77
603
30
MOHAMMAD IRFAN HOUSE # R-78, BLOCK # 13 / D - 3, GULSHAN-E-IQBAL, KARACHI. MEHMOOD AHMED 33100-0707614-1
MOHAMMAD MUBEEN
517
38
555
517
38
555
31
MEHMOOD AHMED ST NO. 1, P-97/15-C, GULISTAN COLONY NO. 2, MOH. HAFEEZABAD, FAISALABAD. MALIK SHAHID AMIN
SAGHEER AHMED
681
113
794
681
113
794
32
MALIK SHAHID AMIN HOUSE NO, 279, PAK BLOCK MUHALLAH ALLAMA IQBAL TOWN LAHORE LAHORE. MALIK MUHAMMAD SHAKEEL
35202-0227040-9
MALIK MOHD AMIN
1,670
145
1,815
1,670
145
1,815
33
MALIK MUHAMMAD SHAKEEL HOUSE NO. D/17, SHAH FAISAL COLONY NO.1, KARACHI.
35202-5832996-1
MANZOOR ILLAHI
616
102
718
616
102
718
34
KHALID KHALID HOUSE # A-19, SECTOR # 8/B, BILAL COLONY, KORANGI, KARACHI. KASHIF JAVED
42201-0849422-7
MUHAMMAD SAEED
984
160
1,144
984
160
1,144
35
KASHIF JAVED HOUSE NO. 20, BLOCK-78, SECTOR 5-D, NEW KARACHI, KARACHI. KAMAL AKHTER
42101-1569978-5
MUHAMMAD JAVED BALOCH
654
108
762
654
108
762
36
KAMAL AKHTER HOUSE NO. R-472, BLOCK NO.16, F.B. AREA, KARACHI.
42101-1429126-1
MUHAMMAD RAFIQ
850
140
990
850
140
990
171
(Rupees '000')
JAMSHED AHMED KHAN 42201-2336948-7 GULSHED AHMED KHAN 550 91 641 550 91 -
Annexure - 1
641
S.No.
NIC No.
37
JAMSHED AHMED KHAN H NO. R-13,1ST FLOOR, SECTOR 33-C, KORANGI NO. 2, KARACHI. 42301-0807185-3 HAYDER ALI 650 64 714 650 64
38
IMRAN ALI IMRAN ALI FLAT NO. 604, 6TH FLOOR, EZAN GARDEN, PARSI COLONY, SOLDIER BAZAR, KARACHI. IMAD AZHAR HUSSAIN 42101-1857514-3 SYED AZHAR HUSSAIN 564 97 661 564
714
39
IMAD AZHAR HUSSAIN B-54, BLOCK-2, GULISTAN-E-JOHAR, KARACHI. HUMA JAMEEL 42101-8731397-4 JAMEEL AHMED 660 109 769 660
97
661
40
HUMA JAMEEL B-91, BLOCK-L, NORTH NAZIMABAD, KARACHI. HARIS KHALID 42201-2723198-1 MIAN KHALID UMAR 686 60 746
109
769
41
HARIS KHALID PLOT NO. 396/1, PEDRO DESOZA ROAD, GARDEN EAST, KARACHI. FAISAL MEHMOOD 35201-8520390-5 SH SADIQ ALI 596 50 646
686
60
746
42
FAISAL MEHMOOD HOUSE # 16, JAVED STREET, MAQBOOL ROAD, ICHRA, LAHORE. DILDAR SHAIKH 42201-1023126-3 DOST MUHAMMAD SHAIKH 660 109 -
596
50
646
43
DILDAR SHAIKH HOUSE NO. C-37/1, BLOCK 10-A, GULSHAN-E-IQBAL, KARACHI. 42301-9283363-9 CHAUDHRY MUHAMMAD AHMED 684 67
769
660
109
769
44
CHAUDHRY MUHAMMAD HANIF CHAUDHRY MUHAMMAD HANIF PLOT NO. 6-C, FLAT-1, RAHAT COMMERCIAL LANE NO. 1, PHASE-VI, D.H.A., KARACHI. ZAHID MEHMOOD MALIK ZAFAR MEHMOOD MALIK SHAHEEN BEGUM MUHAMMAD JAVAID MUHAMMAD RAEES AJMAL ELAHI 42101-0855332-1 REHEM ELAHI 42101-3544568-8 42101-7638805-1 42101-1912921-7 MUHAMMAD YAMIN 42101-4009799-9 42101-2187809-1 SULTAN MAHMUD MALIK 790
751
684
67
751
45
AYAZ SECURITY SERVICES PVT. LTD. A-2, 1ST FLOOR, PLOT NO. A-45, RAILWAY HOUSING SOCIETY, BLOCK 13-B, GULSHAN-E-IQBAL, KARACHI.
140
930
790
140
930
46
AL HUDAIBIYAH (PVT) LTD. SUIT NO. 104, IST FLOOR, SUPREME SHOPPING MALL, BLOCK-18, GULISTAN-E-JAUHAR, KARACHI.
645
106
751
645
106
751
47
AJMAL ELAHI FLAT NO. 205, ZUBIADA HEIGHTS, NAZIMABAD, KARACHI. ABDUL HAFEEZ 36302-1674740-9 ABDUL RASHEED
660
109
769
660
109
769
48
ABDUL HAFEEZ HOUSE NO. 49/51 ST NO. BLOCK-Y, NEW MULTAN, MULTAN. ABDUL MAJEED 35202-8897922-7
520
46
566
520
46
566
49
ABDUL MAJEED 802 G-4, JOHAR TOWN, LAHORE. ABDUL JABBAR 42201-8568926-9
ALI MUHAMMAD
517
38
555
517
38
555
50
ABDUL JABBAR HOUSE NO.G-128, GALI NO.1, GULFISHAN SOCIETY, AZEEMPURA, KARACHI. MUHAMMAD EHTESHAM
SARDAR ALI
1,335
221
1,556
1,335
221
1,556
51
MUHAMMAD EHTESHAM HOUSE NO. 87, SECTOR 35-B, KORANGI NO. 4, KARACHI. SYED NAJAMUL HASSAN
42201-2508144-1
MUAHMMAD YOUNUS
920
81
1,001
920
81
1,001
52
SYED NAJAMUL HASSAN C-177, BLOCK-J, NORTH NAZIMABAD, KARACHI. MUHAMMAD IRSHAD
42101-4805014-1
SYED AZIZ UR REHMAN
1,814
90
1,904
1,814
90
1,904
53
MUHAMMAD IRSHAD FLAT NO. 9, 4TH FLOOR, SAEEDA MANSION, STREET NO. 6, BURNS ROAD, KARACHI.
42301-1019531-7
MUHAMMAD IDREES
870
143
1,013
870
143
1,013
Annual Report 2011

MUHAMMAD AZAM SHEIKH
54
MUHAMMAD AZAM SHEIKH VOHRA HOUSE, CLUB ROAD, HOUSE NO. 404, CIVIL LINE, SARGODHA.
38403-2647375-7
SHEIKH MANZOOR AHMAD
623
94
717
623
94
717
(Rupees '000')
MUHAMMAD ASLAM 42101-8932412-5 MURAD KHAN 880 145 1,025 880 145
Annual Report 2011

-
Annexure - 1
S.No.
NIC No.
Total
1,025
55
MUHAMMAD ASLAM HOUSE # L-191, SECTOR 5-B-2, NORTH KARACHI, KARACHI. 37405-0259963-3 KHAWAJA NAZWAZ ULLAH AKHWAND 1,439 126 1,565 1,439
56
KHAWAJA NASIR MUHAMMAD KHAWAJA NASIR MUHAMMAD HOUSE NO. 109/8A, ST NO. 17, BEAUTY BANK CHAKLALA SCHEEM-3, RAWALPINDI. MUHAMMAD ISHTIAQ 35202-8761872-9 MUHAMMAD DIN 545 48 593 545
126
1,565
57
MUHAMMAD ISHTIAQ HOUSE NO. 27, STREET NO. 17, SADI PARK MAZONG, LAHORE. ASIF HAIDER 13503-7680287-9 HAIDER ZAMAN 968 166 1,134
48
593
58
ASIF HAIDER HOUSE NO. 29-B, MOHALLA GHAZI KOT TOWN SHIP SECTOR-D MANSEHRA, MANSEHRA. MALIK TANVEER SUBHANI 81302-9551936-3 MALIK KARAMAT ULLAH 716 62 778
968
166
1,134
59
MALIK TANVEER SUBHANI MAHAJAR COLONY, KHALIQABAD, MIRPUR AK, MIRPUR. MUHAMMAD NAVEED QADRI 31304-9601904-1 HAFEEZ ULLAH 730 122 -
716
62
778
60
MUHAMMAD NAVEED QADRI HOUSE # 1099, STREET NO. 01, MEHMOODABAD 06, KARACHI. SYED SARFARAZ HUSSAIN ZAIDI 36302-6484853-5 SYED NAZAR ABBAS ZAIDI 713 119
852
730
122
852
61
SYED SARFARAZ HUSSAIN ZAIDI ST NO. 5, HOUSE NO. 2, GULZAIB COLONY, MULTAN. JAMEEL AHMED 42101-7783834-9 MUHAMMAD MIRAJ UDDIN 629
832
713
119
832
62
JAMEEL AHMED HOUSE # 1-E 16/10 NAZIMABAD # 1, KARACHI. MUHAMMAD ASIM 35202-2741488-5 MUHAMMAD QASIM
104
733
629
104
733
63
MUHAMMAD ASIM G-2, PNT COLONEY, MULTAN ROAD, LAHORE. MALIK ABDUL KHALIQ 42000-0381103-1 MALIK ABDUL JALIL
882
76
958
882
76
958
64
MALIK ABDUL KHALIQ HOUSE A-19, BLOCK-I, NORTH NAZIMABAD, KARACHI. MUHAMMAD ISHFAQ 35202-5275736-7 RIAZ AHMAD
890
147
1,037
890
147
1,037
65
MUHAMMAD ISHFAQ 4-A, SIRAJ BUILDING BEGUM ROAD, MOZANG, LAHORE. ABDUL RASHEED 42000-0467446-7
638
57
695
638
57
695
66
ABDUL RASHEED HOSUE 3-D-9/9, SECTOR 3-D, DAKHANA NAZIMABAD, KARACHI. RASHID HUSSAIN 42201-5697178-9
ABDUL MAJEED
898
153
1,051
898
153
1,051
67
RASHID HUSSAIN HOUSE # 15, GALI NO.40, AREA 37, LANDHI 3 1/3, KARACHI. AZHAR IQBAL 38403-6466933-1
SHAHZADA NASEER QURESHI
917
152
1,069
917
152
1,069
68
AZHAR IQBAL HOUSE NO. 53, SULTAN COLONY ROAD, SARGODHA. MALIK MUHAMMAD ALI
ZAHEER AHMAD
584
78
662
584
78
662
69
MALIK MUHAMMAD ALI HOUSE NO. B3/65, MOHALLA MALIK FEROOZ DIN, RAHIMYAR KHAN.
31303-2420170-7
MALIK MUHAMMAD SAEED AKHTER
506
68
574
506
68
574
70
KHALID SAEED BUTT KHALID SAEED BUTT HOUSE NO. 239/B/2, SULTAN AHMED KHAN, STREET CHAH BOHAR WALA, NEAR THANA JALIL ABAD, MULTAN. MUSHTAQ ALI
36302-6617811-7
SAEED ULLAH BUTT
672
111
783
672
111
783
71
MUSHTAQ ALI HOUSE NO 111-B/2, 1ST FLOOR, BAITUL MAJEED, SOLDIER BAZAR NO. 2, KARACHI.
42201-3134944-9
HUSSAIN ALI
506
97
603
506
97
603
72
KHAWAJA SAADAT MASOOD SIDDIQUE HOUSE NO. 3081/8M PEER MARKET OUTSIDE BOHAR GATE, MULTAN.
KHAWAJA SAADAT MASOOD SIDDIQUE
36302-3891439-7
KHAWAJA ABDUL RAHEEM SIDDIQUE
543
104
647
543
104
647
173
(Rupees '000')
SAYED ASAD ALI MEHMODI 42201-2693411-1 SYED AHSAN ALI MEMOODI 714 53 767 714 53 -
Annexure - 1
767
S.No.
NIC No.
73
SAYED ASAD ALI MEHMODI HOUSE # 638-C, BLOCK-2, PECHS, KARACHI. IMRAN AHMED QURESHI 42000-9406939-7 MUHAMMAD AKRAM QURESHI 1,275 515 1,790 1,275 515
74
IMRAN AHMED QURESHI HOUSE NO. E/43, LIAQUAT ASHRAF COLONY 1, MEHMOODABAD GATE, KARACHI. 42201-8799735-5 SYED NASIR ABBAS RIZVI 648 108 756 648
1,790
75
SYED ABBAS RIZVI SYED ABBAS RIZVI HOUSE NO.2, STREET NO.E, BLOCK-4, SINDHI JAMIAT CO-OPRETIVE SOCIETY, LANDHI BIN QASIM TOWN,KARACHI. MUHAMMAD HANIF 42301-0701345-3 MUHAMMAD ISMAIL 686 61 747 686
108
756
76
MUHAMMAD HANIF HOUSE NO. 02, HAJI PEER WALI GALI, BARA-E-IMAM, NISHTER ROAD, KARACHI. MUHAMMAD IRFAN 35202-2344438-7 MUHAMMAD SAIEN 707 117 824
61
747
77
MUHAMMAD IRFAN HOUSE # 61 STREET # 53, GHAFFAR STREET MOHALLAH CAPTAIN JAMAL ROAD, SANDA KALAN, LAHORE. KHUSHI MUHAMMAD 42501-1160886-7 NOOR MUHAMMAD 1,289 218 1,507
707
117
824
78
KHUSHI MUHAMMAD HOUSE NO. P-126, PUNJAB TOWN, MALIR HALT, KARACHI. RANA HABEEB ULLAH 42401-2369912-9 RANA ATA ULLAH 507 79 -
1,289
218
1,507
79
RANA HABEEB ULLAH HOUSE NO. B-318, GALI NO.30, BALOCH GOTH, SHAH FAISAL MOHALLAH, SECTOR 7-F, KARACHI. MUHAMMAD RIZWAN ASLAM 35202-2392049-7 SHEIKH MUHAMMAD ASLAM 667 110
586
507
79
586
80
MUHAMMAD RIZWAN ASLAM HOUSE # 12, STREET # 15, QILA LAKSHMAN SINGH, RAVI ROAD, LAHORE. ABDUL MAALIK 42301-0943202-9 MOHAMMAD SALEEM 1,044
777
667
110
777
81
ABDUL MAALIK HOUSE # 192/2, BLOCK # B, KHUDADAD COLONY, CAMBRON EMBBSI, SHAHRAH-E-QUIADEEN, KARACHI. ABDUL QADIR 42201-0469800-7 QAZI ABDUL MALIK
172
1,216
1,044
172
1,216
82
ABDUL QADIR HOUSE NO E/268, NATHA KHAN GOTH, SHAH FAISAL COLONY, KARACHI. JAWED AKHTAR 42201-3465151-3 ABDUL SATTAR
860
142
1,002
860
142
1,002
83
JAWED AKHTAR B-38/1, BLOCK # 13-C, GULSHAN-E-IQBAL, KARACHI. MALIK KARAMAT ULLAH 81302-5597003-3
1,720
283
2,003
1,720
283
2,003
84
MALIK KARAMAT ULLAH KHALIQ ABAD PO KHAS MIRPUR AK MIRPUR AK MIRPUR. ASAD ULLAH KHAN 17301-4389448-5
MALIK SHAMUS DIN
746
64
810
746
64
810
85
ASAD ULLAH KHAN HOUSE NO. 31 A III, GULBERG-III, LAHORE. SYED MOHAMMAD OBAID ATHAR WASTI 42101-2891157-5
FARID ULLAH KHAN
1,682
279
1,961
1,682
279
1,961
86
SYED MOHAMMAD OBAID ATHAR WASTI HOUSE # R-1183, BLOCK # 9, F.B. AREA, KARACHI. MUHAMMAD NAEEM ASMAT
SYED MUHAMMAD IDRESS AKHTAR WASTI
1,349
223
1,572
1,349
223
1,572
87
MUHAMMAD NAEEM ASMAT HOUSE NO. 131, STREET NO 48, SECTOR I-8/2, ISLAMABAD. MUKESH KUMAR
42201-1325391-3
ASMAT ULLAH
915
89
1,004
915
89
1,004
88
MUKESH KUMAR FLAT C-303, NAZ PLAZA, M.A. JINNAH ROAD, KARACHI. MUMTAZ AHMED
42301-0151175-3
KANAYOMAL
870
143
1,013
870
143
1,013
89
MUMTAZ AHMED HOUSE NO. 659, BLOCK-E, GULSHAN RAVI, LAHORE. ALI RAZA SHAHANI
35202-5112823-9
KHUSHI MUHAMMAD
662
117
779
662
117
779
Annual Report 2011
90
ALI RAZA SHAHANI 83 ZENAT BLOCK, ALLAMA IQBAL TOWN, LAHORE.
35202-2714529-5
GHULAM HUSSAIN KHOKHAR
890
147
1,037
890
147
1,037
(Rupees '000')
KHALEEL AHMED 31303-2452440-7 MUHAMMAD IBRAHIM 674 112 786 674 112
Annual Report 2011

-
Annexure - 1
S.No.
NIC No.
Total
786
91
KHALEEL AHMED HOUSE NO. 01, SADIQ BAZAR, RAFIQUE CLOTH HOUSE, RAHIMYAR KHAN. MUSTANSAN GHIAS SADDIQI 35201-4732112-7 GHAIS SIDDIQUE 688 114 802 688 114
92
MUSTANSAN GHIAS SADDIQI HOUSE NO. 120, BLOCK-D, PUNJAB COOPERATIVE HOUSING SOCIETY, DEFENCE, LAHORE. SAIMA 42301-0864662-6 AHMED 525 100 625 525
802
93
SAIMA FLAT NO. 214, 2 FLOOR, FAIZAN HEIGHTS, KHARADAR, MOOSALANE, KARACHI. 42501-4958430-3 MUHAMMAD KABEER 522 100 622
100
625
94
MUHAMMAD SHAMIM MUHAMMAD SHAMIM FLAT NO. C-12, 3RD FLOOR, A ONE COMPLEX PHASE # 2, MAIN ABUL HASSAN ISPHANI ROAD, GULSHAN-E-IQBAL, KARACHI. MUHAMMAD SHARJIL GOPLANI 42301-4432674-7 ABDUL SHAKOOR 1,088 145 1,233
522
100
622
95
MUHAMMAD SHARJIL GOPLANI HOUSE NO. 75-A/1, STREET-33, KHYABAN-E-SEHER, PHASE-V, EXTENTION D.H.A., KARACHI. ZAFAR IQBAL 42201-0242921-7 MUHAMMAD IQBAL 637 105 -
1,088
145
1,233
96
ZAFAR IQBAL FLAT NO. A-1/6, RUPALI RESIDENCY, BLOCK-19, GULSHAN-E-IQBAL, KARACHI. KHALID JAWED 42401-5786557-5 MUHAMMAD ANWAR 712 136
742
637
105
742
97
KHALID JAWED HOUSE NO 515, 3RD FLOOR, GALI NO 5, BLOCK-D, SHAIR SHAH COLONY, KARACHI. ASIM NAZIR GILL 35201-7719875-5 NAZIR AHMAD GILL 593
848
712
136
848
98
ASIM NAZIR GILL 104-D, PUNJAB COOPERATIVE HOUSING SOCIETY, CANTT LAHORE. MUHAMMAD IRFAN 41303-0170008-7 ABDUL RAZZAQ
49
642
593
49
642
99
MUHAMMAD IRFAN HOUSE NO. F, PLOT NO. 38, SHAKHI PIR ROAD, HYDERABAD. ASIM IRSHAD 35404-6029816-5 MUHAMMAD IRSHAD
1,514
722
2,236
1,514
722
2,236
100
ASIM IRSHAD KASHIF PARK ST NO. 1, HOUSING COLONY, SHEIKHUPURA. JAVED HUSSAIN 37401-2782569-5 SARDAR ALI
2,020
431
2,451
2,020
431
2,451
101
JAVED HUSSAIN HOUSE NO. 38, QURESHIA STREET, GUJAR KHAN. ABDUL LATIF 42501-4233635-9
1,874
633
2,507
1,874
633
2,507
102
ABDUL LATIF HOUSE A/7, GULSHAN TAYYABI, JAMA-E-MILLIA ROAD, MALIR, KARACHI. MUHAMMAD SALEEM SYED FAISAL AMEER BABER GULZAR BUTT 42301-3238650-9 42101-5634542-7 42201-0291169-1
YASEEN KHAN
645
106
751
645
106
751
103
FLEX POINT 1ST FLOOR, SR 9/102, REATHA SWAMI BUILDING, PAKISTAN CHOWK, KARACHI.
SYED AMEER HUSSAIN ABDUL SATTAR GULZAR MUHAMMAD BUTT
1,091
179
1,270
1,091
179
1,270
104
BABER GULZAR BUTT HOUSE NO. 388/3, LASBELLA HOUSE, GARDEN, KARACHI. JAMAL NASIR
953
168
1,121
953
168
1,121
105
JAMAL NASIR HOUSE C-4, BLOCK-20, RAILWAY SOCIETY, GULISTAN-E-JOHAR, KARACHI. MUNASIB KHAN
42101-1846738-1
KHUDA BUKSH
890
147
1,037
890
147
1,037
106
MUNASIB KHAN HOUSE NO. B-130, GULSHAN-E-RAFI, SOCIETY JAMIA MILLIA ROAD MALIR, KARACHI.
42501-1263522-9
BEHRAM KHAN
926
154
1,080
926
154
1,080
107
MATEEN FOODS INTERNATIONAL (PVT) LTD SB-1, BLOCK-1, PAKISTAN TULIP VELLEY, GULISTAN E JAUHAR, KARACHI.
WASIF KHAN MUHAMMAD MATEEN KHAN SAMINA GULRAIZ CHOWDHRY MUHAMMAD GULRAIZ KHAN
91506-0135669-1 42101-9830916-3 42101-5896501-0 42101-2790791-9 42401-5421870-7
MUHAMMAD MATEEN KHAN CHOWDHRY MUHAMMAD GULRAIZ KHAN MOHAMMAD KHALIL KHAN CH.MOHAMMAD IBRAHIM KHAN ABDUL RASHEED
1,189
187
1,376
1,189
187
1,376
108
FARHAN RASHEED FARHAN RASHEED HOUSE NO.760, SECTOR 5/J, SAEEDABAD, BALDIA TOWN, KARACHI.
688
113
801
688
113
801
175
(Rupees '000')
SAEED AHMED 36303-1751133-3 MUHAMMAD RAFIQ 624 103 727 624 103 -
Annexure - 1
727
S.No.
NIC No.
109
SAEED AHMED 318, E BLOCK, SHAH RUKNAY ALAM COLONY, MULTAN. 42301-2227462-1 ABDUL KHALIQ 828 136 964 828 136
110
NAFEES UR REHMAN NAFEES UR REHMAN FLAT # D 1, 1ST FLOOR, PLOT # 68/9/2 B AL YOUSUF GARDEN GHULAM HUSSAIN QASIM ROAD, GARDEN WEST, KARACHI. SHEIKH ABDUL REHMAN 42301-4507311-5 SHEIKH EHSAN ELAHI 949 84 1,033 949
964
111
SHEIKH ABDUL REHMAN FLAT NO 25, 5TH FLOOR, HUSSANI BUILDING, HAKKANI CHOWK, KARACHI. ADNAN ATHER 37405-9079652-3 MUHAMMAD ATHER SHAMIM 891 80 971 891
84
1,033
112
ADNAN ATHER HOUSE NO CB-403, AYAN STREET, QUBA MARKET, LANE NO 05, PESHAWAR ROAD, RAWALPINDI. GHULAM MUHAMMAD MUGHAL 37201-0204298-1 KHAN MUHAMMAD MUGHAL 513 68 581
80
971
113
GHULAM MUHAMMAD MUGHAL HOUSE NO F-2/81, MOHALLAH HUSSAINI, NEAR GHALAH MANDI CHAKWAL. ISHTIAQ AHMED 81302-2693057-9 CHAUDHARY ABDUL KHALIQ 556 106 662
513
68
581
114
ISHTIAQ AHMED HOUSE NO 26 B, SECTOR B 4, MIRPUR AK MIRPUR. MUHAMMAD AJAZ 35201-8851023-7 MUHAMMAD SHAREEF 609 101 -
556
106
662
115
MUHAMMAD AJAZ PLOT NO. MIIE-A 265, 1ST FLOOR, STREET 4, TANGA STAND BLOCK-A, URDU BAZAR, SHERSHAH, KARACHI. ABDUL MAJID CHAUDRY 42201-4721695-9 ABDUL MALIK 665 59
710
609
101
710
116
ABDUL MAJID CHAUDRY FLAT # A-10, PLOT NO. 1-2-3, DOLMEN ARCADE, SHAHEED-E-MILLAT BAHADURABAD, KARACHI. MAKHDOOM QAISER UZ ZAMAN HASHMI 36103-8455109-9 MAKHDOOM FAKHAR U ZAMAN HASHMI 943
724
665
59
724
117
MAKHDOOM QAISER UZ ZAMAN HASHMI COLONY NO 3, HOUSE NO 1382, ST NO 11, BLOCK-A, KHANEWAL. MUHAMMAD BUX 41304-9731729-9 RAHEEM BUX
180
1,123
943
180
1,123
118
MUHAMMAD BUX FLAT # 23, SADAF PLAZA, TANDO WALI MUHAMMAD, HYDERABAD. SHEIKH MUHAMMAD KHALIQ UR REHMAN 37405-2752668-9
601
50
651
601
50
651
119
SHEIKH MUHAMMAD KHALIQ UR REHMAN HOUSE M 1001 STREET 41 MOHALLAH AMER PURA, RAWALPINDI. MUHAMMAD ANWAR BAIG 35202-3051540-1 ALI AKBAR BAIG
SHEIKH MUHAMMAD HAFEEZ UR REHMAN
526
47
573
526
47
573
120
MUHAMMAD ANWAR BAIG HOUSE NO 31, ST NO 1, MALIK PARK, KARAM NAGAR, KHOKHAR ROAD, LAHORE. AFTAB SHAFIQ 42301-1108264-1
1,007
165
1,172
1,007
165
1,172
121
AFTAB SHAFIQ HOUSE NO 95/2, 21 STREET, KHAYABAN-E-SEHAR, PHASE-6, D.H.A., KARACHI. NAZEER HUSSAIN 35202-6064872-3
MUHAMMAD SHAFIQ
974
48
1,022
974
48
1,022
122
NAZEER HUSSAIN HOUSE NO 25-A, BLOCK-A, AL FAISAL TOWN, CANTT LAHORE.
GHULAM QADIR
1,207
197
1,404
1,207
197
1,404
123
SHAHBAZ AHMED SHAHBAZ AHMED HOUSE # 673-E, GALI # 4, BLOCK-D, SHER SHAH STREET, 3RD FLOOR, FLAT # 5, KARACHI. MUDASSAR MALIK
33100-1031798-7
GHULAM RASOOL
850
140
990
850
140
990
124
MUDASSAR MALIK HOUSE NO 76, STREET NO 76, NATIONAL TOWN, SANDA ROAD, LAHORE. CHOUDHRY SHABIR AHMED
35202-1432544-3
MALIK MUZAFFAR
621
102
723
621
102
723
125
CHOUDHRY SHABIR AHMED BANGREEL KHURD PO RAWAT, ISLAMABAD. MALIK TASHIF YOUSAF
61101-2925307-5
WADI HUSSIAN
1,418
250
1,668
1,418
250
1,668
Annual Report 2011
126
MALIK TASHIF YOUSAF PUL AIK HABIB PURA PASRUR ROAD C/O MUHAMMAD SALEEM MIR TIMBER MARKET, SIALKOT.
34603-2824318-7
MALIK MUHAMMAD YOUSAF KHAN
770
121
891
770
121
891
(Rupees '000')
ZAHEER UL HASSAN ANSARI 42201-0692690-1 ZAMEER-UL-HASSAN ANSARI 828 136 964 828 136
Annual Report 2011

-
Annexure - 1
S.No.
NIC No.
Total
964
127
ZAHEER UL HASSAN ANSARI D-22, BLOCK-3, CLIFTON BEHIND BILAWAL HOUSE, CLIFTON, KARACHI." ALTAF HUSSAIN 35201-1690262-7 GHULAM HUSSAIN 805 131 936 805
128
ALTAF HUSSAIN HOUSE NO. P-41, STREET-3, BLOCK-N, NORTH NAZIMABAD, KARACHI. AKRAM QURESHI 42101-6064246-3 ISLAM UDDIN 650 64 714 650
131
936
129
AKRAM QURESHI HOUSE L-1062, SECTOR 5 B 2, NORTH KARACHI, KARACHI. RANA MOHAMMAD BABER 42201-5312829-7 RANA MUHAMMAD NASEER 697 123 820
64
714
130
RANA MOHAMMAD BABER HOUSE NO 25 A, STREET 17, AREA C, QAYUMABAD, KARACHI. SYED SIBTE HASSAN NAQVI 42101-1615425-1 SYED AZIZ AHMAD NAQVI 938 165 1,103
697
123
820
131
SYED SIBTE HASSAN NAQVI H NO A-9, RUFI GREEN LAND SECTOR 13-A, GULZAR-E-HIJRI, KARACHI. ISLAM UD DIN 42301-9220125-5 MERAJ UDDIN 572 92 -
938
165
1,103
132
ISLAM UD DIN FLAT NO 302, 3RD FLOOR, SUMAIYA AMARA BUILDING, SULEMAN STREET, SHOE MARKET, KARACHI. MUDASSIR HUSSAIN 42201-2276812-5 MUZAMMIL MIAN 660 109
664
572
92
664
133
MUDASSIR HUSSAIN FLAT NO C-30, PARADISE SQUARE, PLOT NO 5 S NO 205 BLOCK 13/E, GULSHAN-E-IQBAL, KARACHI. HAQ NAWAZ 32103-0269748-1 MUHAMMAD KHAN 637
769
660
109
769
134
HAQ NAWAZ HOUSE NO 76, STREET NO 15, CHUDHARY PARK, RASHID ROAD, BILAL GUNJ, LAHORE. MUHAMMAD YOUNUS KARAR 42201-2749316-3 TAYYAB KARAR
105
742
637
105
742
135
MUHAMMAD YOUNUS KARAR HOUSE NO. R-172, BLOCK-11, GULSHAN-E-IQBAL, KARACHI. MUHAMMAD IMRAN 35302-1875428-3 TAJ UDDIN
924
185
1,109
924
185
1,109
136
MUHAMMAD IMRAN HOUSE NO A-116, SECTOR 11-A, NORTH KARACHI, KARACHI. MUHAMMAD ASLAM 35202-1285025-1
660
109
769
660
109
769
137
MUHAMMAD ASLAM H # 141-D, MOHALLA NAWAB TOWN 1 KM RAIWIND ROAD, LAHORE. ABDUL WAHEED 42301-9751257-7
MUHAMMAD SULTAN
851
71
922
851
71
922
138
ABDUL WAHEED HOUSE NO 1607, STREET NO 26, AZAM BASTI, KARACHI. MUHAMMAD ARSHAD 33100-3374986-1
RASHEED AHMED
1,258
207
1,465
1,258
207
1,465
139
MUHAMMAD ARSHAD HOUSE # 22 STREET # 2 AKBAR ABAD, FAISALABAD. MUHAMMAD AMJAD 35202-5091579-3
HAJI RANJHA
546
90
636
546
90
636
140
MUHAMMAD AMJAD HOUSE NO 286 D, MOHALLAH GULSHAN RAVI, GULSHAN RAVI, LAHORE. ABDUL JABBAR
ABDUL RASHEED
660
109
769
660
109
769
141
ABDUL JABBAR HOUSE L-717, SECTOR 5C2, NORTH KARACHI, KARACHI. MUHAMMAD JAMAL
42101-1433194-3
ABDUL SATTAR
1,720
283
2,003
1,720
283
2,003
142
MUHAMMAD JAMAL HOUSE NO. B-3 LANE NO G-23, BLOCK-05, CLIFTON, KARACHI.
42201-5341639-5
BASHIR AHMED
1,207
197
1,404
1,207
197
1,404
143
MUHAMMAD RIAZ MALIK MUHAMMAD RIAZ MALIK CHAUDHARY QAYYAUM HOUSE STREET AMBALA SWEETS, SANDA ROAD, LAHORE. MOIN SHIWANI
35200-1557583-1
ALLAH BUKH
1,901
316
2,217
1,901
316
2,217
144
MOIN SHIWANI FLAT NO F-07, ROCK HEAVEN APPARTMENT BLOCK-8, CLIFTON, KARACHI.
42301-5979311-3
ABDUL KARIM SHIWANI
1,376
228
1,604
1,376
228
1,604
177
(Rupees '000')
MUHAMMAD JAWED 42201-7063195-5 ABDUL GHAFFAR 1,376 228 1,604 1,376 228 -
Annexure - 1
1,604
S.No.
NIC No.
145
MUHAMMAD JAWED FLAT NO B 10, 5TH FLOOR, PRINCE HOMES, GARDEN EAST, KARACHI. SYED SHAHID NAYYER 42101-7773135-5 SYED NAYYER RAZA 509 75 584 509 75
146
SYED SHAHID NAYYER HOUSE NO B-33, BLOCK-I, NORTH NAZIMABAD, KARACHI. ASLAM PERVAIZ 42201-8794775-3 ADDUL QUDDUS 944 84 1,028 944
584
147
ASLAM PERVAIZ HOUSE NO 103 PARDESI PALACE JAMSHED ROAD NO 3, KARACHI. ABDUL RASHID 42101-7986470-7 ABDUL WAHID 921 162 1,083 921
84
1,028
148
ABDUL RASHID HOUSE # 9/8, MASJID QUAT UL ISLAM COLONY, LIAQUATABAD, KARACHI. 42201-0722699-7 MUHAMMAD ANWAR PASHA 930 163 1,093
162
1,083
149
MUHAMMAD KASHIF PASHA MUHAMMAD KASHIF PASHA HOUSE # A-98, BLOCK 13-B, RAILWAY HOUSING SOCIETY, GULSHAN-E-IQBAL, KARACHI. ALI ASGHAR KHAN 35201-1340687-7 MUAMBER KHAN 890 147 1,037
930
163
1,093
150
ALI ASGHAR KHAN HOUSE 312, MAI PATHANI HOTEL STREET STREET 1, QURBAN LINE, GULBERG, LAHORE. MUNAWAR HUSSAIN 42201-7793132-3 ATHER HUSSAIN 653 108 -
890
147
1,037
151
MUNAWAR HUSSAIN HOUSE NO. R-13, BLOCK-11, GULSHAN-E- IQBAL, KARACHI. TARIQ MEHMOOD 31303-7342442-5 SALAMAT ALI 597 53
761
653
108
761
152
TARIQ MEHMOOD HOUSE NO 17-D, STREET NO 02, Z BLOCK, GULSHAN E USMAN, RAHIMYAR KHAN. ABDUL HAMEED 37201-1595130-9 GHULAM JELANI 520
650
597
53
650
153
ABDUL HAMEED HOUSE MADINA TOWN MASOOD ABAD, BHOUN ROAD, CHAKWAL. 37201-7840596-1 SHEIKH SHARIF HUSSAIN
69
589
520
69
589
154
SHAHID HAROON QURESHI SHAHID HAROON QURESHI HOUSE NUMBER MCB-1/1013, CHISTIAN DHOKOO ROAD, CHAKWAL. SARWAR ALI 42301-0716384-5 MUHAMMAD SIDDIQUE
603
99
702
603
99
702
155
SARWAR ALI HOUSE NO 212, 2 FLOOR, STREET NO 4, SECTOR-D, AKHTER COLONY, KARACHI. MUHAMMAD JAVED RAO 36103-4119478-3
678
67
745
678
67
745
156
MUHAMMAD JAVED RAO PEOPLES COLONY, HOUSE NO 1-3, STREET NO 4, BLOCK-W, KHANEWAL. SHAHID HASSAN 37405-9875511-3
RAO MUHAMMAD SARWAR KHAN
805
146
951
805
146
951
157
SHAHID HASSAN HOUSE NO 93, BLOCK-B, SATELLITE TOWN, RAWALPINDI. MUHAMMAD HAFIZ UR REHMAN 36302-1533429-9
DILBER HASSAN
680
766
1,446
680
766
1,446
158
MUHAMMAD HAFIZ UR REHMAN 473 MUHALLAH WALLAYATABAD COLONY NO 2, MULTAN. AMIR AZIZ
ZIA UR REHMAN
567
47
614
567
47
614
159
AMIR AZIZ MUSTAFA TAIRAS, FLAT NO 201-202, MAIN BAHADURABAD CHOWRANGI, KARACHI. SYED MASHKOOR AHMED JILANI
42201-1560426-5
ABDUL AZIZ
1,109
109
1,218
1,109
109
1,218
160
SYED MASHKOOR AHMED JILANI HOUSE NO A-112, BLOCK-N, NORTH NAZIMABAD, KARACHI. MUHAMMAD SALEEM
42101-5980079-7
SYED MAHBOOB AHMED JILANI
645
106
751
645
106
751
161
MUHAMMAD SALEEM HOUSE NO. A-42,43, SHEET-25, MODEL COLONY, KARACHI. MUHAMMAD ASGHAR
42201-0508273-1
HAJI WALI MUHAMMAD
555
29
584
555
29
584
Annual Report 2011
162
MUHAMMAD ASGHAR 15-P, P BLOCK, GREEN TOWN, FAISALABAD.
33203-1418102-7
SANA ULLAH
604
53
657
604
53
657
(Rupees '000')
MUHAMMAD HAJI 42401-5540380-1 YOUSUF 860 142 1,002 860 142
Annual Report 2011

-
Annexure - 1
S.No.
NIC No.
Total
1,002
163
MUHAMMAD HAJI HOUSE NO. 1728/341, KS MUJAHID ROAD, JUNA GARH MUHALA, BALIDIA TOWN, KARACHI. MUHAMMAD SAGHIR AHMED 42401-8080664-7 MUHAMMAD RABAN 1,678 275 1,953 1,678
164
MUHAMMAD SAGHIR AHMED HOUSE # 739, STREET-32, SAEEDABAD, BALDIA TOWN, UC-5, KARACHI. MATI UR REHMAN 61101-1989406-9 MURID UL HAQ 1,248 109 1,357 1,248
275
1,953
165
MATI UR REHMAN HOUSE NO. 46-B, STREET NO. 23, G-6/2, ISLAMABAD. MUHAMMAD AQEEL 42201-7632471-7 MUHAMMAD NAQI 681 113 794
109
1,357
166
MUHAMMAD AQEEL HOUSE NO 1/623, SHAH FAISAL COLONY, KARACHI. SHEIKH MUHAMMAD ASHRAF 36302-0264230-7 SHEIKH MUHAMMAD GHAFOR 1,007 165 1,172
681
113
794
167
SHEIKH MUHAMMAD ASHRAF HOUSE NO 2353/9, MUHALA SULTANI, NEAR CHOK GHANTA GHAR, MULTAN. AQEEL AHMED 42201-6326907-7 ATI ULLAH 621 102 -
1,007
165
1,172
168
AQEEL AHMED HOUSE NO R-598, SECTOR NO 1-A, JACOB LINE, KARACHI. KHALID KHAN 42201-8577623-9 ZAMEER ULLAH KHAN 1,225 200
723
621
102
723
169
KHALID KHAN HOUSE NO D-11, GULISTAN-E-RAFI, MALIR, KARACHI. NADEEM KHAN 32203-2794891-9 DARWASH KHAN 890
1,425
1,225
200
1,425
170
NADEEM KHAN HOUSE # 02, STREET # 03, HASHTAM COLONY, CHIRA ROAD, SADIQABAD, RAWALPINDI. MOHAMMED AMEEN KHAN 42101-8467837-9 ABDUL SHAKOOR
147
1,037
890
147
1,037
171
MOHAMMED AMEEN KHAN HOUSE NO 269, SECTOR D, BHITTAI COLONY, KORANGI CROSSING, KARACHI. MUHAMMAD SHAKEEL 42401-6255346-7 MUHAMMAD ISMAIL MALIK
616
102
718
616
102
718
172
MUHAMMAD SHAKEEL HOUSE # 80, F BLOCK, NAVEL COLONY, HAWKSBAY ROAD, MARI POOR, KARACHI. DENZIL AYAN 41304-1158729-9 JAMES
621
102
723
621
102
723
173
DENZIL AYAN FLAT NO.513, REHMAN PLAZA, GARDEN EAST, KARACHI. ZAHOOR ELAHI PIRACHA 35201-8450517-9
562
95
657
562
95
657
174
ZAHOOR ELAHI PIRACHA HOUSE # 141 D NEW SAMANABAD, LAHORE. MUHAMMAD HUSSAIN MIRZA 42201-0722927-7
MEHBOOB ELAHI PIRACHA
805
131
936
805
131
936
175
MUHAMMAD HUSSAIN MIRZA HOUSE NO B 120, BLOCK-13, GULISTAN-E-JAUHAR, KARACHI. HAYAT MUHAMMAD 42201-0500212-7
ASAD ALI MIRZA
557
40
597
557
40
597
176
HAYAT MUHAMMAD HOUSE # K-512, 1ST FLOOR, SECTOR-35/B, KORANGI NO.5, KARACHI. TAJ UL WAQAR
MUHAMMAD QASIM ANSARI
630
55
685
630
55
685
177
TAJ UL WAQAR HOUSE R 395, SECTOR-7, D-2 NORTH KARACHI, KARACHI.
42101-7841648-1
TAJ UL IBRAR
989
164
1,153
989
164
1,153
178
MUHAMMAD KAMRAN MUHAMMAD KAMRAN House NO.221, STREET NO.5 01 SHEIKH MALTOON TOWN, MARDAN. RAJA SHAHID KHURSHEED
16101-6418088-9
HAJI ABDUL RAHIM
792
28
820
792
28
820
179
RAJA SHAHID KHURSHEED HOUSE NO 612-A, STREET NO 8, AFSHAN COLONY, RAWALPINDI.
37405-9826561-7
RAJA KHURSHEED AKHTER
887
78
965
887
78
965
180
MUHAMMAD MOHSIN HOUSE 2/A, STREET 109, ISLAM PURA, LAHORE.
MUHAMMAD MOHSIN
35202-6274307-1
MUHAMMAD AMIN
913
160
1,073
913
160
1,073
179
(Rupees '000')
17301-5361253-1 BARKAT ALI 594 21 615 594 21 -
Annexure - 1
615
S.No.
NIC No.
181
MEHMOOB ALI MEHMOOB ALI HOUSE IN QURESHI STREET, GULBARG # 01, PESHAWAR PESHAWAR. RIZWAN AZHAR 35202-2552005-1 SHEIKH AZHAR HUSSAIN 1,137 168 1,305 1,137 168
182
RIZWAN AZHAR 232 BI JOHAR TOWN LAHORE, LAHORE. SHEIKH SHAKEEL AKHTAR 34104-2323501-1 SHEIKH MANZOOR AHMED 816 134 950 816
1,305
183
SHEIKH SHAKEEL AKHTAR MODEL COLONY, WAZIRABAD WAZIRABAD. MUHAMMAD ABDUL KAREEM 42201-4765314-3 ZAHOOR KHALDI 805 131 936 805
134
950
184
MUHAMMAD ABDUL KAREEM HOUSE NO, 655, C 1 AREA LANDHI, KARACHI. SHAMSHAD AHMED AKHTAR 36601-5689269-1 SHAHBUDD DIN 510 73 583
131
936
185
SHAMSHAD AHMED AKHTAR K T NO 694, STATION CHOWK, TOBA ROAD, NEAR CITY SCHOOL, JHANG SADAR, JHANG. SULEMAN ZAFAR 42301-4794170-1 MUHAMMAD ZAFAR IQBAL 934 155 1,089
510
73
583
186
SULEMAN ZAFAR HOUSE NO X-12, 19 EAST STREET, DEFENCE PHASE-1, KARACHI. SHEHZAD RASHEED TAREEN 54400-3519472-3 ABDUL RASHEED 860 142 -
934
155
1,089
187
SHEHZAD RASHEED TAREEN HOUSE NO 84-C, STREET NO 17, KHAYABAN E SEHAR, PHASE-6, D.H.A., KARACHI. NADEEM ABBAS 42201-6213628-9 MUHAMMAD SALEEM 629 103
1,002
860
142
1,002
188
NADEEM ABBAS HOUSE 78, SECTOR 32/C, KORANGI 1 1/2, KARACHI. MUHAMMAD AKRAM KHAN 42201-0430937-1 MANZOOR AHMED KHAN 658
732
629
103
732
189
MUHAMMAD AKRAM KHAN HOUSE # E-315-316, SECTOR-E, STREET # 4, AKHTER COLONY, KARACHI. SHAFQUAT ULLAH 42301-2112111-9 ZAFAR ULLAH
58
716
658
58
716
190
SHAFQUAT ULLAH HOUSE NO 51/3/1, DAWOODIA COMPOUND, GHULAM HUSSAIN QASIM ROAD, GARDEN WEST, KARACHI. MUHAMMAD USMAN 42301-0892683-5 MOHAMMAD HASHIM
870
143
1,013
870
143
1,013
191
MUHAMMAD USMAN FLAT NO. B-101, 1ST FLOOR, NASHEMAN ARCADE, PLOT NO 714/4, JAMSHED ROAD NO. 3, KARACHI. MUHAMMAD MADNI 31202-3501430-3
690
131
821
690
131
821
192
MUHAMMAD MADNI HOUSE NO BVI 1621, CHOWK SHADRA, BAHAWALPUR. MUHAMMAD ZULFIQAR 42101-8723982-3
SOFI MUHAMMAD RAMZAN
601
53
654
601
53
654
193
MUHAMMAD ZULFIQAR FLAT NO 1641, 1ST FLOOR, BISMILLAH TERRACE, NAZIMABAD # NO: 2, KARACHI. NOMAN ABDUL RAUF 42301-3275034-9
MOHAMMAD ISHAQ
671
127
798
671
127
798
194
NOMAN ABDUL RAUF HOUSE NO A/566, MASOOM SHAH COLONY, MEHMOODABAD, KARACHI. MUNIR AHMED
ABDUL RAUF AWAN
626
58
684
626
58
684
195
MUNIR AHMED GALLI / MOHALLAH EID GAH, SHAKARDARAH, ATTOCK. JAVED IQBAL
37101-1677189-1
GHULAM MUSTAFA
629
103
732
629
103
732
196
JAVED IQBAL HOUSE NO 100-BI, UMER BLOCK, ABBASIA TOWN, RAHIMYAR KHAN. AMJAD ALI
31303-1422372-5
MUHAMMAD IQBAL
566
92
658
566
92
658
197
AMJAD ALI SAMIJA BAD NO 1 MUHALLA SAHREEF PURA MULTAN MULTAN. ABDUL HAFEEZ ATHER
36302-5609756-9
JAMAT ALI
549
49
598
549
49
598
Annual Report 2011
198
ABDUL HAFEEZ ATHER HOUSE NO 30/376, SHAH SYEDAN CHURCH ROAD NEAR GOVT SARDAR BEGUM HOSPITAL, SIALKOT.
34603-2256002-7
CHAUDHARY FATEH MUHAMMAD
683
86
769
683
86
769
(Rupees '000')
MEHDI RAZA 35202-3044887-3 MUHAMMAD YASEEN 1,121 175 1,296 1,121 175
Annual Report 2011

-
Annexure - 1
S.No.
NIC No.
Total
1,296
199
MEHDI RAZA HOUSE NO 17, COLLEGE BLOCK, ALLAMA IQBAL TOWN, LAHORE. MUHAMMAD ARSHAD NADEEM 36103-1589886-1 MUHAMMAD SADIQ 1,020 167 1,187 1,020 167
200
MUHAMMAD ARSHAD NADEEM HOUSE 157, AL-HAMD GARDENS EST 2, NEAR SAGIAN PULL, SHAHDARA, LAHORE. MAZHAR MEHMOOD 42101-6331005-3 SH RASOOL MEHMOODI 1,656 271 1,927 1,656
1,187
201
MAZHAR MEHMOOD HOUSE # B-194, BLOCK-6, GULSHAN-E-IQBAL, KARACHI. MUHAMMAD IRFAN 42101-9055092-9 MUKHTAR AHMED 653 108 761
271
1,927
202
MUHAMMAD IRFAN HOUSE R-375, SECTOR 14-B, SHADMAN TOWN, NORTH KARACHI, KARACHI. KANWAR ABID MAJEED 42201-8485110-3 KANWAR ABDUL MAJEED 626 100 726
653
108
761
203
KANWAR ABID MAJEED A-205/8, BLOCK 13-D/3, GULSHAN-E-IQBAL, KARACHI. SYED MUHAMMAD RAZI 42101-9701338-1 SYED MUHAMMAD SAEED 839 138 -
626
100
726
204
SYED MUHAMMAD RAZI HOUSE NO B-1, BLOCK-T, NORTH NAZIMABAD, KARACHI. SHAFIQ UR REHMAN KHAN 42201-6157756-3 ABDUL REHMAN KHAN 890 147
977
839
138
977
205
SHAFIQ UR REHMAN KHAN FLAT -A-5, PLOT-3, AL HAYAT SQUARE, AL HILAL COOPERATIVE HOUSING SOCIETY GULSHAN-E-IQBAL, KARACHI. MUHAMMAD FAHIM 36302-0213880-7 MALIK HAYAT ULLAH 793
1,037
890
147
1,037
206
MUHAMMAD FAHIM SABZI MANDI ROAD, HOUSE NO 3707/1, MUHALLA HASSAN PARWANA COLONY, MULTAN. 42301-3616434-9 ABBAS BHAI
129
922
793
129
922
207
MOIZ MOIZ FLAT NO. 102,103, SAMAR CLASSICS, M.A. JINNAH ROAD, PAKISTAN CHOWK, KARACHI. ARIF MEHMOOD 42101-7638393-5 MEHMOOD HASAN
576
94
670
576
94
670
208
ARIF MEHMOOD HOUSE L-73, SECTOR 11/C-1, SIR SYED TOWN, NORTH KARACHI, KARACHI. MUHAMMAD TASLEEM QAMER 36302-5540975-1
580
50
630
580
50
630
209
MUHAMMAD TASLEEM QAMER GALI BALDOZER WALI, MASOOM SHAH ROAD, ST NO 1, MUHALA WRITERS COLONY, MULTAN. MUHAMMAD FARID AWAN 13101-0903290-7
MEHARBAN QAMER
600
53
653
600
53
653
210
MUHAMMAD FARID AWAN BEARR PO BOX, PUBLIC SCHOOL, ABBOTABAD. SYED IFTIKHAR HUSSAIN JAFEERY 42201-7905337-1
ATTA MUHAMMAD AWAN
554
99
653
554
99
653
211
SYED IFTIKHAR HUSSAIN JAFEERY HOUSE B-507, B-AREA, MALIR TOWN, KARACHI. MOAZZAM ALI
SYED MAZHAR HUSSAIN JAFFERY
677
129
806
677
129
806
212
MOAZZAM ALI HOUSE NO.261, BLOCK-A, SATELLITE TOWN, SARGODHA. HABIB UR REHMAN QUERSHI
38403-9755919-9
MIAN ZAHOOR AHMAD
519
84
603
519
84
603
213
HABIB UR REHMAN QUERSHI MUMTAZ STREET, HOUSE NO 18-B, MOHALLAH HABIB ULLAH RAOD, GHARI SHAHU, LAHORE. SHAHZAD ALI
35202-0145432-1
ABDUL GHAFOOR QURESHI
648
57
705
648
57
705
214
SHAHZAD ALI P-3374, MOH. MANSOORABAD, NEAR AL-MAKKAH GENERAL STORE, FAISALABAD. MUHAMMAD RAFEY
33100-0794405-3
SUBHAN ALI
606
54
660
606
54
660
215
MUHAMMAD RAFEY HOUSE NO. B-81, KHAYABAN-E-BADAR, 21ST STREET, PHASE-VI, D.H.A., KARACHI.
42000-6860181-5
JAMEEL UR REHMAN
503
44
547
503
44
547
216
MUHAMMAD RAZA FLAT NO B-4, 2ND FLOOR, AMAN HEIGHTS, PATEL PARA, KARACHI.
MUHAMMAD RAZA
42201-0773264-3
BARKAT ALI
606
98
704
606
98
704
181
(Rupees '000')
SALEEM ALI 42301-0891930-5 JUMMA SALAH MUHAMMAD 877 143 1,020 877 143 -
Annexure - 1
1,020
S.No.
NIC No.
217
SALEEM ALI FLAT NO 4, ALI ASGHER HOUSE, 2ND FLOOR, SOLDIER BAZAR NO. 2, KARACHI. MANZOOR AHMED AWAN 38403-5864814-3 BADAR UD DIN 816 132 948 816 132
218
MANZOOR AHMED AWAN HOUSE NO 270, STREET NO. 24, GULZAR-E-QUAID, RAWALPINDI. MUHAMMAD JAMIL KHAN 37405-0640712-1 MUNSHI KHAN 870 143 1,013 870
948
219
MUHAMMAD JAMIL KHAN HOUSE 98-A, RAHAT COLONY, KAMALABAD, RAWALPINDI. KHALEEQ UR REHMAN / ATIQ UR REHMAN / SHAFIQUE UR REHMAN MUHAMMAD IMRAN SHAIKH 41303-1197998-1 MUHAMMAD AHSAN SHAIKH 799 68 867 35202-9256360-1 35202-0196327-7 35202-5624983-5 MUHAMMAD RAFIQ QURESHI 510 73 583 510
143
1,013
220
RAVI PLASTIC INDUSTRIES (PVT) LTD PLOT NO. 1174-1175, USMAN STREET, NEAR BABA RAFAI DARBAR, OPPOSITE CHOHAN ROAD, STOP BUND ROAD, LAHORE.
73
583
221
MUHAMMAD IMRAN SHAIKH HOUSE NO A/116-34-197, HIRABAD, HYDERABAD. NAZEER AHMAD 36302-6188593-3 KABIR KHAN 610 56 -
799
68
867
222
NAZEER AHMAD HOUSE NO. 09, NEAR IQBAL COLLEGE, SHAMSHABAD COLONY, MULTAN. MUHAMMAD YOUSUF 42201-8450371-9 JALAL UDDIN 631 56 -
666
610
56
666
223
MUHAMMAD YOUSUF HOUSE NO. A-21, MADINA COLONY, 13-D, GULSHAN-E-IQBAL, KARACHI. MUHAMMAD ASLAM AWAIS 35201-1374578-5 MUHAMMAD BASHIR 629 49
687
631
56
687
224
MUHAMMAD ASLAM AWAIS 255-B, SHALIMAR HOUSING SCHEME, BAGHBAN PURA, LAHORE. MOHAMMAD ASLAM 42101-8817989-1 MOHAMMAD YAR 561
678
629
49
678
225
MOHAMMAD ASLAM HOUSE NO. 86/10, ORANGABAD, CHOOTA MEADAN, NAZIMABAD NO.3, KARACHI. MUBEEN AHMED QURESHI 42201-0549702-3 SHAMIM AHMED QURESHI
107
668
561
107
668
226
MUBEEN AHMED QURESHI HOUSE # E/30, AREA-E, KORANGI # 5 3/4 (PONAY CHAY), KARACHI. FAISAL SOHAIL 42101-1602839-5 MUHAMMAD ASLAM
603
99
702
603
99
702
227
FAISAL SOHAIL HOUSE NO. R-301, SECTOR NO. 14/B, SHADMAN TOWN, NORTH KARACHI, KARACHI. MUHAMMAD ATHAR LODHI 31202-8606179-7 ABDUL GHAFFAR
623
118
741
623
118
741
228
MUHAMMAD ATHAR LODHI HOUSE NO. 17-D, OFFICER COLONY, BAHAWALPUR. SYED ZULFIQAR HAIDER NAQVI 42101-1895817-9
720
62
782
720
62
782
229
SYED ZULFIQAR HAIDER NAQVI HOUSE NO. R-633, SECTOR 11-C/1, NORTH KARACHI, KARACHI. ALTAF HUSSAIN 42401-0976141-9
SYED ALI MUKHTAR NAQVI
805
131
936
805
131
936
230
ALTAF HUSSAIN HOUSE # M-2EB 15/18 A, SINDH MAHAL STREET # 29, BLOCK-B, AKBER ROAD, SHER SHAH, KARACHI. SHAHID BASHIR
GUL HASSAN
1,609
263
1,872
1,609
263
1,872
231
SHAHID BASHIR HOUSE NO. 113-C, KHAYABAN-E-BAHRIA, PHASE-VII, DEFENCE, KARACHI. MUHAMMAD FAROOQ
42301-8448099-1
SHEIKH BASHIR
1,050
162
1,212
1,050
162
1,212
232
MUHAMMAD FAROOQ FLAT NO. 2-A, 2ND FLOOR, WAHEED CENTRE, URDU BAZAR, KARACHI. FAISAL MUHAMMAD IBRAHIM
42301-2012152-9
ABDUL SATAAR
601
93
694
601
93
694
233
FAISAL MUHAMMAD IBRAHIM FLAT NO. 21, BLOCK-B, 6TH FLOOR, GIZRA ARCADE, GARDEN WEST, KARACHI. TARIQ ISHTIAQ KHAN
42000-0557548-7
MUHAMMAD IBRAHIM
1,189
194
1,383
1,189
194
1,383
Annual Report 2011
234
TARIQ ISHTIAQ KHAN HOUSE NO. B-52, BANGLOW TOWN, KARACHI.
42201-3457198-1
ISHTIAQ RASOOL KHAN
904
155
1,059
904
155
1,059
(Rupees '000')
35202-2835081-9 MUHAMMAD RAFI 875 663 1,538 875 663
Annual Report 2011

-
Annexure - 1
S.No.
NIC No.
Total
1,538
235
MOHAMMAD KHURRAM MOHAMMAD KHURRAM 32 H-2, JOHAR TOWN, NEAR STAR BAKERS AND SWEETS, JOHAR TOWN, LAHORE. NADEEM YASEEN SHANAWAR 35102-5630501-7 MUHAMMAD YASEEN 744 1,376 2,120 744
236
NADEEM YASEEN SHANAWAR HOUSE NO. 19 S 93 STREET MIAN SKENDAR MAIN BAZAR ROAD, KOT KASUR, KASUR. NASIR ALI 36302-0286605-9 BAGH ALI 509 40 549 509
1,376
2,120
237
NASIR ALI HOUSE # 35 T BLOCK ST # C, NEW MULTAN, MULTAN. MUHAMMAD YOUSUF 42501-5145261-1 GHULAM RASOOL 594 97 691
40
549
238
MUHAMMAD YOUSUF HOUSE A-28, GULISTAN SOCIETY, KARACHI. MUHAMMAD SALEEM 42101-1826752-5 MUHAMMAD ASHRAF 535 86 621
594
97
691
239
MUHAMMAD SALEEM HOUSE NO. 1384/B MOHALLAH 5 NISHTER COLONY, GULBAHAR NAZIMABAD, KARACHI. ALI HASSAN 42201-0452201-9 LAL MUHAMMAD 1,018 164 -
535
86
621
240
ALI HASSAN PLOT # 449, 1ST FLOOR, SECTOR 51-B, KORANGI # 6, KARACHI. MUHAMMAD RAMZAN 34501-1058929-1 NAZEER AHMED 905 80
1,182
1,018
164
1,182
241
MUHAMMAD RAMZAN HOUSE NO. MIIE-A/831, STREET-37, JINNAH ROAD, BLOCK-C, SHER SHAH, KARACHI. MUHAMMAD ASHRAF 42201-1604084-7 SALEH MUHAMMAD 1,035
985
905
80
985
242
MUHAMMAD ASHRAF A-502, PANAMA CENTRE, BLOCK 13-D, GULSHAN-E-IQBAL, KARACHI. 42301-0300274-1 BASHIR AHMED
170
1,205
1,035
170
1,205
243
AHSAN ULLAH SALEEMI AHSAN ULLAH SALEEMI HOUSE # 530, SECTOR-C, STREET # 8, REHMAN COLONY, KARACHI. MUHAMMAD TAHIR 42201-8096499-1 IBRAHIM
509
82
591
509
82
591
244
MUHAMMAD TAHIR FLAT NO. C-402, CRESCENT VIEW, BLOCK-13, GULISTAN-E-JOHAR, KARACHI. MUHAMMAD JAMAL 42201-6545062-3 LATIF UR REHMAN
653
108
761
653
108
761
245
MUHAMMAD JAMAL REHMAN BUILDING, FLAT NO. LSB-6, STREET NO. 4, BLOCK-10, GULSHAN-E-IQBAL, KARACHI. SHEIKH MUHAMMAD ANWER 37401-1503210-5
736
956
1,692
736
956
1,692
246
SHEIKH MUHAMMAD ANWER HOUSE NO 230, AMEER BAZ, OPOSITE MUHAMMADI MOSQUE, GUJAR KHAN. MUJEEB UNNISA 42401-7252719-0
SHEIKH ABDUL MAJEED
646
658
1,304
646
658
1,304
247
MUJEEB UNNISA FLAT NO B-17, BLOCK-J, TAQI CENTER , NORTHNAZIMABAD, KARACHI. MUHAMMAD YAMEEN 42301-2109142-7
MUHAMMAD SALEEM
528
654
1,182
528
654
1,182
248
MUHAMMAD YAMEEN FLAT NO.5, GHOSIA CENTRE, GIZRI, KARACHI. WAQAR AHMED
NASEER AHMED
976
569
1,545
976
569
1,545
249
WAQAR AHMED HOUSE NO. KMC-537-A, SECTOR 14/E, AKBAR SHAHEED CHOWK, ORANGI TOWN, KARACHI. CHAUDHRY SAIF ULLAH
42401-3734675-3
ASHRAF KHAN
768
490
1,258
768
490
1,258
250
CHAUDHRY SAIF ULLAH HOUSE NO. 5, HAQ LANE MUHALLA NEW LALA ZAR, ADYALA ROAD, RAWALPINDI. IMMAD ZAFAR
37405-2728189-7
CHAUDHRY MUHAMMAD SIDDIQUE 34101-2528289-7 MUHAMMAD ANWAR
696
330
1,026
696
330
1,026
251
ALI TRADERS (PROP.IMMAD ZAFAR) GHALLA MANDI GHAKKAR MANDI, GUJRANWALA. FEROZ KHAN
2,098
396
2,494
2,098
396
2,494
252
FEROZ KHAN HOUSE # 104, SECTOR 131, TOWNSHIP, LAHORE.
35202-1141339-7
JUMA KHAN
654
647
1,301
654
647
1,301
183
(Rupees '000')
MUHAMMAD NADEEM AHMED BUTT 34603-2172177-9 MUHAMMAD SHARIF 1,080 320 1,400 1,080 180 -
Annexure - 1
1,260
S.No.
NIC No.
253
M/S PAK MOTORS & RENT A CAR 2 ALLAMA IQBAL CHOWK, SIALKOT, PUNJAB. MUHAMMAD SAQIB 37405-3400269-9 JAMIL UR REHMAN 935 26 961 935 -
254
FUEL POWER CNG ASGHAR MALL ROAD, NEAR NAZ CINEMA, RAWALPINDI. ARIF 15602-1186379-1 SHAUKAT ALI 550 210 760 550
935
255
ARIF MOHALLA, LANDAYKAS, MINGORA, TEHSIL/DISTT SWAT, N.W.F.P. AZMAT BHATTI 422016-810220-3 BASHIR AHMED BHATTI 573 573 573
210
760
256
AZMAT BHATTI (DECEASED) 25/B, SHAD BAGH HOUSING SOCIETY, MALIR HALT, KARACHI. KHAWAJA TARIQ FAROOQ 35202-1548702-3 KHAWAJA FAROOQ SADIQ 557 557
573
257
KHAWAJA TARIQ FAROOQ (DECEASED) 403, EME SECTOR D.H.A MULTAN ROAD, LAHORE. JAVED ASGHAR HASSAN IKRAM QAZI MOEED ALI SHAHZAD KOUSER CHEEMA CH. FAROOQ A. CHEEMA IMRAN FAROOQ CHEEMA M. YOUNUS M. SHAHZAD YOUNUS 42101-1782295-1 MUHAMMAD HUBAIR 35202-6559478-5 35202-9705130-3 MAULA BAKHSH MUHAMMAD YOUNUS 1,795 7,280 34603-4526639-7 34603-6623013-5 34603-1792850-9 CH. MIAN KHAN CHEEMA CH. MIAN KHAN CHEEMA CH. FAROOQ A. CHEEMA 11,999 4,220 35201-1458037-1 35202-2534160-1 35202-6634158-3 M ASGHER SHEIKH IKRAM-UL-HAQ QAZI FARHAT ALI 2,791 4,221 7,012
557
557
258
SYNERGY CORPORATION SUIT # 15, 7TH FLOOR, CENTRAL PLAZA, CIVIC CENTRE, NEW GARDEN TOWN, LAHORE.
2,791
4,221
7,012
259
RECTO SPORTS DASKA ROAD, SIALKOT-6.
16,219
11,999
4,220
16,219
260
TAIBA MODEL JEWELLERS SV-8-5-4/1, UMER STREET, SUNEHRI MANDI, OLD ANARKALI ROAD, LAHORE.
9,075
1,795
7,280
9,075
261
ASIF ENTERPRISES MUHAMMAD TAHIR R-453, SECTOR 14-B, SHADMAN TOWN, NORTH KARACHI, KARACHI-75850. ARIF GULZAR ASAD GULZAR FEROZ GULZAR MUNEER AHMED TANVEER AHMED WASEEM AHMED ABDUL WAHEED RASHID AHMED ZAKARIA BEGUM MUNEER AHMED TANVEER AHMED WASEEM AHMED ABDUL WAHEED RASHID AHMED ZAKARIA BEGUM MUNEER AHMED TANVEER AHMED WASEEM AHMED ABDUL WAHEED RASHID AHMED ZAKARIA BEGUM MUNEER AHMED TANVEER AHMED WASEEM AHMED ABDUL WAHEED RASHID AHMED ZAKARIA BEGUM SYED MEHMOOD UL HASSAN RIZVI MUHAMMAD QASIM QURESHI 36602-0930881-7 36602-0945927-5 36602-1980003-3 36602-0930877-3 36602-1700981-3 36602-0893425-0 36602-0930881-7 36602-0945927-5 36602-1980003-3 36602-0930877-3 36602-1700981-3 36602-0893425-0 36302-0334318-9 37405-5451824-3 36602-0930881-7 36602-0945927-5 36602-1980003-3 36602-0930877-3 36602-1700981-3 36602-0893425-0 36602-0930881-7 36602-0945927-5 36602-1980003-3 36602-0930877-3 36602-1700981-3 36602-0893425-0 SHABEER AHMED SHABEER AHMED BASHEER AHMED ABDUL MAJEED MUHAMMAD SIDDIQUE ABDUL MAJEED SHABEER AHMED SHABEER AHMED BASHEER AHMED ABDUL MAJEED MUHAMMAD SIDDIQUE ABDUL MAJEED SHABEER AHMED SHABEER AHMED BASHEER AHMED ABDUL MAJEED MUHAMMAD SIDDIQUE ABDUL MAJEED SHABEER AHMED SHABEER AHMED BASHEER AHMED ABDUL MAJEED MUHAMMAD SIDDIQUE ABDUL MAJEED SYED ABDUL HASSAN RIZVI BASHIR AHMED 35201-4424476-7 35201-7622962-9 35201-3511954-1 GULZAR MUHAMMAD ARIF GULZAR ARIF GULZAR
588
588
588
588
262
GALAXY TEXTILE MILLS 7-D-1, GULBERG-III, LAHORE.
140,178
56,010
196,188
56,010
56,010
263
7,602
7,602
7,602
7,602
264
8,853
8,853
8,853
8,853
265
7,200
27,269
34,469
7,200
27,269
34,469
266
SULEMAN SPINNING MILLS 61, ABDALI ROAD, MULTAN 47, QASIM ROAD, MULTAN.
6,234
38,367
44,601
6,234
38,367
44,601
Annual Report 2011
267
YAKTA TRAVELS & TOURS UNIT 5, 2ND FLOOR, SARDAR PLAZA, 6TH ROAD STOP, MURREE ROAD, RAWALPINDI.
2,848
1,672
4,520
1,672
1,672
Annual Report 2011
(Rupees '000')
ABDUL QADIR JANGDA 42301-5862447-7 ABDUL RAZZAQ 101,551 11,821 5,900 119,272 -
Annexure - 1
Outstanding Liabilities Before Adjustments Fathers / Husbands Name Principal Total Accrued Mark-up Others
2,194
S.No.
NIC No.
Principal written off
Interest/ Mark-up written off

-
Total
2,194
268
BUKHARI COMMERCIAL EXPORTERS ATTIQUE MARKET, 3RD FLOOR, BOMBAY BAZAR, KHARADAR, KARACHI. ANTHONY RUSTIN LYNN MARGARET ISOBEL S.M.GHALIB CAROLE LINDA FLORIAN ZENNER MANUEL MAKKI SALMAN RAHIM RASHID MIRZA TASEER AHMED SHEIKH MUHAMMAD YASIN NISAR AHMED SHAFAY HUSSAIN MUHAMMAD MEHBOOB HAMID NAZIR HASAN MAHMOOD AHMED MAHMOOD LIAQAT MAHMOOD AISHA CHAUDHRY QASIM CHAUDHRY SARAH LEGHARI FATIMA HAMEED KAMAL ALAM KHALID HAMID KHAN RAFIQUR REHMAN SIKANDAR HAMID SHAHID KARIM MIAN NAZIR AHMED PERACHA QAMAR NAZIR PERACHA FARIHA NAZIR PERACHA CYMA NAZIR PERACHA TAYMUR ALAM PARACHA HASAN MAHMOOD HAFIZ LAEEQ AHMED NUSRAT YAR AHMED SAEED IQBAL CHAUDHRY MUHAMMAD ZAHID AAMER SAEED REHMAN GHANI FIRASAT ALI BASHIR A CHOUDHRY BABAR SULTAN AZRA BABAR NAVEED NAIYAR HUSSAIN 34101-4247219-1 34101-3479860-8 42301-4883876-9 42301-4241881-7 35201-1444666-5 33102-1817745-5 42301-6373132-9 43201-5250481-9 42301-3598846-5 42301-1067986-1 274-42-430485 517-48-043072 274-50-430486 517-90-043074 35201-1702969-3 212-69-087723 270-67-545943 AZIZUDDIN PERACHA NAZIR AHMED PERACHA MIAN NAZIR AHMED PERACHA MIAN NAZIR AHMED PERACHA MIAN NAZIR AHMED PARACHA MOHAMMAD YAMEEN KHURSHEED AHMED IFTIKHAR AHMED CHAUDHRY MUHAMMAD IQBAL CHAUDHRY MUHAMMAD SHARIF ANWER SAEED AMJAD HUSSAIN FARMAN ALI KARAM ELAHI SULTAN BABAR NAIYAR HUSSAIN 244-48-140963 277-50-106041 271-37-049402 277-48-347640 517-49-191524 AKHTAR ALAM KHAN ABDUL HAMID KHAN KHALILUR REHMAN KHAN ABDUL HAMID KHAN MOHAMMAD KARIN 35202-9061529-5 35201-2550198-3 35201-7907619-7 35202-2433151-6 35202-2556962-5 35201-2295859-4 35201-1366941-8 LIAQAT MAHMOOD LIAQAT MAHMOOD CH. SULTAN MAHMOOD KARAMATULLAH CHAUDHRY KARAMATULLAH CHAUDHRY AHMED MAHMOOD FAROOQ HAMEED 24,819 6,664 35202-4255471-1 35202-2324124-9 35201-7973297-7 CH. SHUJAT HUSSAIN ABDUL HAMEED CHUADHRY NAZIR AHMED 103,206 27,932 37401-1402647-9 37405-0372117-5 37405-0433772-3 MUHAMMAD KHALID MARGHOOB SHEIKH QAMAR DIN MEHARBAN KHAN 1,378 1,378 NON-RESIDENT NON-RESIDENT 35201-1597411-3 NON-RESIDENT NON-RESIDENT NON-RESIDENT NON-RESIDENT 42301-5026134-7 SYDNEY RUSTIN WILLIAM JOHN ALEXANDER SARDAR MUHAMMAD AKRAM YAHIA A. ADRIS TIMM ZENNER ALIAN DR. S.A. RAHIM MUHAMMAD IFTIKHAR MIRZA 30,867 3,153 34,020 -
269
SOUTHERN ELECTRIC POWER COMPANY LTD. NO.38, FIRST STREET, F-6/3, ISLAMABAD.
3,153
3,153
270
RAWAT CNG KALAR ROAD, OPPOSITE WAPDA OFFICE, TEHSIL L RAWAT, RAWALPINDI.
1,378
1,378
271
KUNJAH TEXTILE MILLS LIMITED 20/E-1 (C), GULGERB-III, LAHORE.
131,138
27,932
27,932
272
PRIME DAIRIES LTD 38, EMPRESS ROAD, LAHORE.
19,829 51,312
6,664
19,829
26,493
273
SECCO PAK (PVT) LTD. 18 KM. LAHORE SHEIKHUPURA ROAD, LAHORE.
13,486
13,486
13,486
13,486
274
SHAHPUR TEXTILE MILLS (PVT) LTD HOUSE NO.77-A, ST.NO.16, CALVERY GROUND, LAHORE CANTT.
18,965
2,337
21,302
7,215
2,337
9,552
275
INVEST CAPITAL INVESTMENT BANK LIMITED (FORMERLY AL-ZAMIN LEASING) C3C,12TH LANE , ITTEHAD COMMERCIAL, PHASE-II EXT., D.H.A KARACHI"
48,733
10,877
59,610
10,877
10,877
276
ADIL CERAMICS 10 KM LAHORE SIDE, GT ROAD, GUJRANWALA.
3,669
3,669
3,669
3,669
277
ANZ TELECOM HOUSE NO. 29/2, STREET NO. 29, PHASE-V, D.H.A., KARACHI. SYED IFTIKHAR ALI
1,329
1,329
1,329
1,329
278
AZIZ BROTHERS 41 D, INDUSTRIAL ESTATE, MULTAN.
36302-6231997-3
SYED ANWAR ALI BUKHARI
934
934
934
934
279
DAWOOD MILLS STORE 46 BRANDRETH ROAD, LAHORE.
SHEIKH AHMAD DAWOOD
35201-8843168-7
SHEIKH DAWOOD AHMED
1,142
1,142
1,142
1,142
185
186
Annexure - 1
MUHAMMAD IMRAN DAWOOD SHEIKH AHMAD DAWOOD SHAHID RAZA 34603-7839428-5 GHULMAN RASOOL 1,161 1,161 35201-4903314-3 274-88-305116 SHEIKH DAWOOD AHMAD SHEIKH DAWOOD AHMAD 59,549 4,205 63,754 -
(Rupees '000')
4,205
S.No.
NIC No.

-
Total
4,205
280
DAWOOD SPINNING MILLS LIMITED 46 BRANDRETH ROAD, LAHORE.
281
GRACE SHOES RAILWAY ROAD, CHOWK ALLAMA IQBAL, SIALKOT. MUHAMMAD ILYAS 61101-5615049-9 ADBUL AZIZ 334 41 280 655
1,161
1,161
282
ISLAMABAD PHOTO SERVICE & KODAK EXPRESS LAB SHOP NO. 24-B, BLOCK 12-C, JINNAH SUPER MARKET, F-7 MARKAZ, ISLAMABAD. MUSTANSAR HAFEEZ 35201-1681739-1 HAFEEZ ULLAH KHAN 2,271 -
334
41
280
655
283
MAHRAB PIPE INDUSTRIES KALA KHATAI ROAD JAVEED PARK, OPP MADRAS -TUL-BINAT, SHAHDARA, LAHORE. SYED ETHESHAM HAIDER ZAIDI 35202-4627086-3 SYED HAMEED ASGHAR ZAIDI 518 -
2,271
2,196
2,196
284
MANZOOR & SONS 252/A-II, BLOCK-5, TOWNSHIP, LAHORE. SYED AZIZ ANWAR NADEEM AKHTAR ABDUL SAMI 33100-0595318-7 MUHAMMAD SHARIF 36302-8884357-1 36302-7868986-5 SYED ANWAR ALI BUKHARI SYED ANWAR ALI BUKHARI 10,000
873
1,391
518
873
1,391
285
SABRI INDUSTRIES 144C FATIMA JINNAH S.I.E, DISTRICT SIALKOT.
537
10,537
537
537
286
SAMI SONS WEAVING FACTORY P-2 NEW CIVIL LINES, GORAYA ROAD, FAISALABAD. NARGIS MUSTAFA NAZIA ALI SIRAJUDDIN 41306-3875860-3 KHAN GUL 34603-1624780-0 34603-9457984-2 GHULAM MUSTAFA CH ZULFIQAR ALI CH
3,928
3,928
3,928
3,928
287
SHAFY SPORTSWEAR HOUSE NO 31/5, ZAFAR ALI ROAD, SIALKOT CANTT
45,000
2,305
47,305
2,243
2,243
288
SHAHEEN PETROLEUM SERVICE MAIN SHAH MAKKI ROAD, QACHA QILA, HYDERABAD TARIQ HAMEED PURI 33100-2210978-7
21,300
6,634
27,934
3,300
6,634
9,934
289
T.P CORPORATION P-15, MONGOMRY BAZAR, FAISALABAD SHEIKH SOHAIL IBRAHIM 42000-5183618-7
ABDUL HAMEED PURI
12,500
2,681
15,181
2,158
2,158
290
SHAIKH INTERNATIONAL MR 7/1, VIRJEE STREET, JODIA BAZAR, KARACHI.
SHEIKH MUHAMMAD IBRAHIM
1,012
346
1,358
497
346
843
863,572
304,519 26,882 1,194,973
254,056
294,066
20,982
569,104
Annual Report 2011
Pattern of Shareholding as at December 31, 2011
Number of Shareholders
1,544 3,449 3,778 10,308 2,921 3,652 701 420 118 78 45 18 27 15 17 11 89 14 4 6 2 2 1 1 1 27,222
Shareholdings Shares held From

1 101 501 1,001 5,001 10,001 50,001 100,001 200,001 300,001 400,001 500,001 600,001 700,001 800,001 900,001 1,000,001 5,000,001 10,000,001 15,000,001 20,000,001 25,000,001 30,000,001 50,000,001 250,000,001
Percentage
To
100 500 1,000 5,000 10,000 50,000 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 50,000,000 250,000,000 10,000,000,000 61,492 1,209,343 3,299,748 29,672,990 22,756,360 86,119,155 52,908,425 59,471,621 29,465,985 27,158,623 20,546,153 10,035,361 17,579,003 11,473,895 14,459,883 10,739,480 183,912,579 96,835,093 48,412,190 98,507,971 46,603,800 58,321,082 32,460,451 208,111,883 9,132,728,598 10,302,851,164 0.0006 0.0118 0.0320 0.2880 0.2209 0.8359 0.5135 0.5772 0.2860 0.2636 0.1994 0.0974 0.1706 0.1114 0.1404 0.1042 1.7851 0.9399 0.4699 0.9561 0.4523 0.5661 0.3151 2.0199 88.6427 100.0000
Annual Report 2011
187
Categories of Shareholders as at December 31, 2011
Category
Shares held
Percentage
Directors, Chief Executive Officer, and their spouse and minor children Associated Companies, Undertakings and Related Parties NIT, ICP & IDBP/ICP Banks, Development Financial Institutions, Non Banking Financial Institutions Insurance Companies Modarabas and Mutual Funds Public Sector Companies & Corporations Executives / Employees Foreign Companies Shareholders holding 10% or more {excluding Bugis Investments (Mauritius) Pte Limited} General Public (including local & foreign individuals) Others TOTAL
16,083,935
0.16
1 5
9,132,728,598 31,615,386
88.64 0.31
35 17 21 5 22 66
123,754,105 5,682,110 6,565,225 236,840,121 633,913 61,240,852
1.20 0.06 0.06 2.30 0.01 0.58
26,812 237 27,222
572,760,829 114,946,090 10,302,851,164
5.56 1.12 100.00
188
Annual Report 2011
Details of Pattern of Shareholding as at December 31, 2011
S. No.
1
Categories of Shareholders
Associated Companies, Undertakings and Related Parties Bugis Investments (Mauritius) Pte Ltd.
Number of Shares held
Percentage
1 1 5 2 2 1
9,132,728,598 9,132,728,598 31,615,386 31,500,968 13,516 100,902
88.64
NIT & ICP National Investment Trust Limited Investment Corporation of Pakistan IDBP/ICP
0.31
Directors, CEO and their spouses and minor children Teo Cheng San, Roland Syed Aamir Zahidi Tejpal Singh Hora Chia Yew Hock Wilson Asif Jooma Muhammad Abdullah Yusuf Najmus Saquib Hameed Khawaja Iqbal Hassan Badar Kazmi
16,083,935
0.16
16,083,935
4 5 6 7
Executives / Employees Public Sector Companies and Corporations Foreign Companies Banks, Development Financial Institutions, Non-banking Financial Institutions, Insurance Companies, Modarabas and Mutual Funds General Public (including local & foreign individuals) Others Total
22 5 66 73
633,913 236,840,121 61,240,852 136,001,440
0.01 2.30 0.58 1.32
26,812 237 27,222
572,760,829 114,946,090 10,302,851,164
5.56 1.12 100.00
Annual Report 2011
189
NIB Bank Limited
Proxy Form
I/We ________________________________S/o,D/o,W/o _______________________________ of _____________________________________________________________________________ (full address) being a member of NIB Bank Limited and holder of shares as per Registered Folio No. ______________ and / or CDC Participant I.D. No. _______________________ and Account No. ____________ do hereby appoint ___________________________________ of ____________________________________________________________________________ (full address) or failing him/her ___________________________________________________ of ____________________________________________________________________________ (full address) as my/our proxy to attend, speak and vote for me/us and on my/our behalf at the 9th Annual General Meeting of NIB Bank Limited scheduled to be held on Friday, the 30th March 2012 at 10:00 A.M. at ICAP Auditorium, Institute of Chartered Accountants of Pakistan (ICAP) Building, G-10/4, Mauve Area, Islamabad and at any adjournment thereof. As witness my / our hand this _____________ day of _______________ 2012. Witnesses :
1.
_____________________________ Name : CNIC No.: Address :
Signature of Member(s)
on Rs. 5/- Revenue Stamp
2.
_____________________________ Name: CNIC No.: Address :
NOTE:
A member entitled to attend a General Meeting is entitled to appoint a proxy to attend and vote instead of him / her. No person shall act as proxy (except for a Corporation) unless he / she is entitled to be present and vote in his / her own right. Proxies, in order to be valid, must be complete in all respects and be received at the Head Office of the Bank not later than 48 hours before the meeting.
NIB Bank Limited

Registered Office:
First Floor, Post Mall, F-7 Markaz, Islamabad
Head Office:
Muhammadi House, I.I. Chundrigar Road, Karachi UAN: 111-333-111 www.nibpk.com

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NIB Bank Limited Annual Report 2011

21 23 103 104 105 106 107 108 110 187

Notice of Annual General Meeting

Directors Report to the Shareholders

Consolidated Profit and Loss Account

Consolidated Statement of Comprehensive Income Consolidated Statement of Changes in Equity

Consolidated Cash Flow Statement

Notes to the Consolidated Financial Statements

Annual Report 2011

Board Audit Committee

Company Secretary Chief Financial Officer Registered Office

Email & URL

Share Registrar Office

Annual Report 2011

Notice of Annual General Meeting

Annual Report 2011

Notice of Annual General Meeting

Annual Report 2011

Directors Report to the Shareholders

Annual Report 2011

Directors Report to the Shareholders

Annual Report 2011

Directors Report to the Shareholders

Annual Report 2011

Directors Report to the Shareholders

On behalf of the Board,

Teo Cheng San, Roland Chairman

Badar Kazmi President & CEO

Annual Report 2011

11. 12. 13. 14. 15. 16.

Annual Report 2011

On behalf of the Board,

Badar Kazmi President & CEO

Date: 22 February 2012 Karachi

Annual Report 2011

Annual Report 2011

Annual Report 2011

On behalf of the Board,

Badar Kazmi President & CEO

Date: 22 February 2012 Karachi

Annual Report 2011

Date: 22 February 2012 Karachi

KPMG Taseer Hadi & Co. Chartered Accountants

Annual Report 2011

Auditors Report to the Members

Annual Report 2011

Auditors Report to the Members

Date: 22 February 2012 Karachi

Annual Report 2011

Teo Cheng San, Roland

Tejpal Singh Hora

Muhammad Abdullah Yusuf

Annual Report 2011

Teo Cheng San, Roland

Tejpal Singh Hora

Muhammad Abdullah Yusuf

Annual Report 2011

Teo Cheng San, Roland

Tejpal Singh Hora

Muhammad Abdullah Yusuf

Annual Report 2011

Statutory General reserve reserve (a) (Rupees '000') 212,804 5,472