Consolidated Financial Statements

Consolidated Financial Statements of NBP and its Subsidiary COmpanies
20 10
132
Directors Report on Consolidated Financial Statements

It gives me great pleasure to present to you on behalf of the Board of Directors, the Consolidated Annual Report of the National Bank of Pakistan for the year ended December 31, 2010. The operating results and appropriations, as recommended by the Board are given below: Rupees In Million 2010 Profit before taxation Taxation -Current year -Prior year(s) -Deferred After Tax Profit Non Controlling Interest Profit Brought Forward Transfer from surplus on revaluation of fixed assets Profit available for appropriation Transfer to Statutory Reserve (10% of after tax profit) Bonus shares issued Cash dividend paid Profit carried forward Earnings per Share (Rs) 24,622 9,872 (938) (2,050) 6,884 17,738 71 61,697 118 79,624 1,756 2,691 8,073 12,520 67,104 13.24 2009 (Restated) 21,199 8,890 (4,137) (1,003) 3,750 17,449 2 53,567 124 71,142 1,821 1,794 5,830 9,445 61,697 12.97
Pattern of Share holding

The pattern of share holding as at December 31, 2010 is given in Annual Report. On behalf of the Board of Directors
Qamar Hussain President Date: March 01, 2011
133
Independent Auditors Report to the Members

M. Yousuf Adil Saleem & Co.
Chartered Accountants Cavish Court, A-35, Block 7 & 8 KCHSU, Shara-e- Faisal Karachi 75350, Pakistan
Anjum Asim Shahid Chartered Accountants Rahman
1st & 3rd Floor, Modern Motors House Beaumont Road Karachi 75530, Pakistan
We have audited the annexed consolidated financial statements of National Bank of Pakistan (the holding company) and its subsidiaries companies (together, the Group) which comprise consolidated statement of financial position as of December 31, 2010 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 consolidated financial statements include unaudited certified returns from the branches, except for 80 branches audited by us and 14 branches audited by the auditors abroad. These consolidated financial statements are responsibility of the Groups management. Our responsibility is to express our opinion on these consolidated 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 consolidated financial statements are free of any material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements. An audit also includes assessing the accounting policies and significant estimates made by management, as well as, evaluating the overall presentation of the consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion. In our opinion the consolidated financial statements present fairly, in all material respects, the financial position of the Group as at December 31, 2010 and the results of its operations, its comprehensive income, its cash flows and changes in equity for the year then ended in accordance with the approved accounting standards as applicable in Pakistan.
M. Yousuf Adil Saleem & Co. Chartered Accountants Engagement Partner: Syed Asad Ali Shah Karachi. Date: March 01,2011
Anjum Asim Shahid Rahman Chartered Accountants Engagement Partner: Muhammad Shaukat Naseeb Karachi. Date: March 01, 2011
135 134
Consolidated Profit and LossFinancial Position Consolidated Statement of Account

For the December 31, 2010 As at year ended December 31, 2010
2009 2010 200 2 00 201 201 200 200 2010 2009 8 US Dollars in 9'000 0Note -------------- U S D o llars in '000 0 N ot ------------------- R 9 es in in '000 8 upe Rupees '000 -------------- (R estate d e ----------------- (R esta te d (Restated) (Restated) ) ) 85.8 84 A S S E T 909,650 1,032,566 5 Mark-up S return / interest earned / 23 88,681,381 78,124,796 45,169,744 470,961 525,936 1,3Mark-up C ash andinterestes w ith trea sury / return / balanc expensed 24 40,448,291 115 ,6 5 7,0 11 6,6 6 8,5 106,77 8,3 1,2 43 ,2 1,3 58,4 46,6 Net B alan 6 interest mark-up 43,511,637 37,676,505 25 1 4 86,3 46 90,7 78438,689 35 506,630 58 ,9 6 banksces /w ith o ther 7 30,74 3,3 28,7 39,4 459 ,8 1 335 ,1 7 357 income 97 29 39,0 2 ,56 6 ,1 8 129,811 10.4 7,007,975 11,148,773 Len din 8 23,05 19,68 3,5 17,1 199 229 81,598 2 ,3 9 banks against non-performing nadvances - 68 1,1 268 Provision gs to financial institu tio s 33,824 3,5 0 5,6net vision foe nts -in u tion in the v alue of 9 ve s tm 301 ,0 78,4 P ro - net in e71 n ts 9.10 2,904,949 651,282 26 81 0 7,583 6 7 Investm r d im 217 ,5 96,0 171,20 4,8 1,9 93 ,4 2,5 33,5 Impairment of 92,593 net 98 ,8 86,7 37 ,3 38,4 90 32 09 ,6 89 34,61,078 21 7 5,9- n et dva nces -goodwill A 1 478 475 413,07 - 90 6,3 4,8 5,5 5,5 236 Provision 20,237 0 393,965 73 ,61 24 ,4 2 46 39 ,6 0 net against d balance sheet obligations55 18.1 O perating fixe off 11 27,62 0,6 25,2 00,8 24,2 71,9 282 293 321 Bad debts written off directly 97 54,2 70 - 64,4 64,20 3,5 237,3 0 73 5,6 8 380,97 assets ta x assets D eferred 1 6,9 3,0 3 137,630 116,546 10,009,482 11,820,292 2 28 59 65 1 1 ,6 2 2 522 ,93 697390,084 629 ,0 6 net r assets 1 54,02 6,7 59,91 5,0 44,9 12,2 301,059 Net O the mark-up / interest income after 33,502,155 25,856,213 7 3 3 net 3 25 27 36 provisions 9,5 48 ,6 11,0 17,7 12,08 6,2 1,03 8,0 18 ,4 946 ,2 53,2 820,07 7,2 05 41 15 NON MARK-UP / INTEREST 67 69 01 INCOME 104,757 114,941 Fee, commission and brokerage 9,871,667 8,996,973 22,086 12,427 Dividend income income 1,067,273 1,896,817 LIA B ILIT IE 36,138 26,534 Income from dealing in foreign currencies 2,278,898 3,103,673 53,479 29,253 Gain on S sale and redemption of securities - net 25 2,512,363 4,593,041 Unrealized gain on revaluation of 1 8,0 06,6 10,62 1,1 10,2 19,0 118,98 123 ,6 6 93,22 B ills 27 9.11 6,730 4 31 69 8,1 61 2,355 6 8 ,9 5 78 228investments classified as Held-for6 ,8 8 paya ble B orrow ing 1 19,65 7,2 44,82 40,0 44,2 466 ,25 521 (198) 0Share ofsloss fromand other trading eposits joint ventures - net of tax 9.8.3 (16,976) (41,715) 5 07 38 91 7 (486) 8 D 1 832 ,1 34,0 727 ,5 13,0 625 ,3 49,2 7,2 81 ,2 8,4 7 0,8 9,6 8 8,9 61 779 Share ofaccou nts profits from associates - net of tax6 66,906 54 9.8.3 13 69 5,238 82 30 90 S ub-ordinated previously held equity interest -2,097 Gain - revaluation of on 180,131 -loans Liabilities against asse ts 6,438 25,430 Other income 26 2,183,891 552,950 222,500 211,341 Total 19,109,332 1 1 23,41 18,150,883 2 4 2,6 2 5,2 7 29 49 1,43 subject to non-markup / interest income financ e 7 3 9 4 4 6 7 - D eferred ta x lease 523,559 601,425 51,653,038 44,965,545 liathe r 465 ,60 494 ,3 3 544,89MARK-UP / INTEREST O bilities 1 46,79 8,3 42,45 5,7 39,98 8,1 NON 4 6 8EXPENSES lia bilities 8 30 68 01 8,3 32 ,4 9 ,61 1,2 906 ,7 19,6 825 ,4 60,7 715 ,6 25,9 265,667 311,256 10,55 7,4 Administrative expenses 27 26,732,045 22,816,665 23 7,317 88 31 Other provisions / write offs 35 17 96 179,819 628,391 NET 1,2 16 ,1 1,4 0 6,42,094 1,5 2 8,7 131 ,2 98,8 120 ,7 92,5 104 ,4 51,2 ASSE 82 3,745 53 32 28 52 05 1,384 84 Other charges T S 118,887 321,647 276,729 314,734 Total non-markup / interest expenses 27,030,751 23,766,703 REPR ESEN TED 246,830 286,691 24,622,287 21,198,842 BY Extra ordinary / unusual items 1 13,45 4,6 10,76 3,7 8,9 69,7 104 ,44 125286,691 156,66 S hare ,3 2 PROFIT BEFORE 246,830 24,622,287 21,198,842 9 29 9,4 02 5,0 51 0 ,42 8 ,4 0 0TAXATION R eserve 25,12 23,39 20,47 6,8 238 272 292,59 capital 103,514 9,871,640 8,890,206 25 03,6 59 6,5 63 7,3 3 ,71 1 114,941 6Taxations napp ro priate d 623 718 ,3 6 781,32 U - Current 67,1 61,69 53,56 - Prior (938,158) (4,137,307) 3(48,173) 6 (10,923) 4 profit 11 94 23 105,68 7,6 95,85 5,3 83,01 3,9 year(s) 966 ,57 1 ,11 6,0 - Deferred (11,680) (23,865) 1,2 3 0,5 (2,049,600) (1,003,099) 65 29 55 110,93 37 112,69 6 43,661 9 5 1,29 80 5 ,7 9 N on-contro llin g 4 98,07 80,153 6,883,882 3,749,800 1,31 6 5,7 0 6,2 9 2 ,88 2 206,538 1,2PROFIT interest 9 AFTER 203,169 17,738,405 17,449,042 106,18 95,96 83,12 6,6 967 1,1 17,3 36,3 41 13,0 85 6,2 36 4,5 8 ,29 87 79 TAXATION S urplus on reva luation of assets 2 25,1 24,82 21,32 248 289,06 292,40 - net 0 91 67 69 4 6 5Attributable to: 1,21 6 ,1 1,4 0 6,4 1,5 28,7 131,29 8,8 120 ,79 2,5 104 ,4 51,2 82203,190 53 207,364 84 Shareholders of the bank 32 52 05 17,809,304 17,450,811 C O N T IN G E N C IE (21) (826) (70,899) (1,769) Non-controlling interest S A N D C O M M IT M E N T S 2 1 203,169 206,538 17,738,405 17,449,042 T he annex ed notes 1 to 44 and A nnex ure I, II and III form an integral part of thes e con solid a ted financial statem ents. US Dollars 0.15 0.15 0.15 0.15 Basic earnings per share for profit for the year attributable to shareholders of the bank Diluted earnings per share for profit for the year attributable to shareholders of the bank 30 31 Rupees 13.24 13.24 12.97 12.97
The annexed notes 1 to 44 and Annexure I, II and III form an integral part of these consolidated financial statements.
Director
Chairman & President Chairman & President
Director Director
Director Director Director
136
For the year ended December 31, 2010

2009 2010 US Dollars in '000 (Restated) CASH FLOWS FROM OPERATING ACTIVITIES 246,830 (22,086) 224,744 10,198 70 129,811 7,583 236 (27) (45,127) (92) 122 486 (61) 7,316 110,515 335,259 (30,344) (15,941) (854,762) (118,740) (1,019,787) 4,682 56,955 1,189,548 28,616 1,279,801 (120,025) (122) (120,147) 475,126 85.8845 286,691 (12,427) 274,264 12,872 150 81,598 33,824 46 (78) (3,428) 1,078 (407) 253 198 (779) 2,094 127,421 401,685 (39,489) (48,476) (124,554) 53,700 (158,819) (30,442) (298,584) 1,218,160 52,014 941,148 (108,824) (253) (109,077) 1,074,937 Profit before taxation Less: Dividend income Adjustments: Depreciation Amortization Provision against non-performing advances - net Provision for diminution in the value of investments - net off balance sheet obligations Provision against Unrealized gain on revaluation of Investments classified as Held-for-trading Capital gain on redemption of NI(U)T LoC Units Impairment of goodwill Gain on sale of fixed assets Financial charges on leased assets Share of loss from joint ventures - net of tax Share of profits from associates - net of tax Other provisions / write offs
Consolidated Cash Flow Statement

Note 2010 2009 Rupees in '000 (Restated)
24,622,287 (1,067,273) 23,555,014 11.2 11.3 10.4 9.10 18.1 9.1 9.5.1 1,105,494 12,920 7,007,975 2,904,949 3,965 (6,730) (294,424) 92,593 (34,968) 21,766 16,976 (66,906) 179,819 10,943,429 34,498,443 (3,391,495) (4,163,338) (10,697,281) 4,611,992 (13,640,122) (2,614,538) (25,643,768) 104,621,041 4,467,321 80,830,056 (9,346,271) (21,766) (9,368,037) 92,320,340
21,198,842 (1,896,817) 19,302,025 875,846 6,014 11,148,773 651,282 20,237 (2,355) (3,875,689) (7,926) 10,496 41,715 (5,238) 628,391 9,491,546 28,793,571 (2,606,095) (1,369,079) (73,410,823) (10,197,892) (87,583,889) 402,108 4,891,586 102,163,744 2,457,667 109,915,105 (10,308,272) (10,496) (10,318,768) 40,806,019
9.8.3 9.8.3
(Increase) / decrease in operating assets Lendings to financial institutions - gross Held-for-trading securities Advances - net Other assets (excluding advance tax) Increase in operating liabilities Bills payable Borrowings Deposits and other accounts Other liabilities (excluding current taxation) Income tax paid Financial charges paid Net cash generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES
(556,992) 127,722 22,086 (20,684) (349) 163 (428,054)
(1,060,051) 106,431 12,427 (32,112) (2,437) 736 (975,006)
Net investments in available-for-sale securities Net proceeds from held-to-maturity securities Dividend income received Investment in operating fixed assets Investment in subsidiary and associates Sale proceeds of property and equipment disposed off Net cash (used) in investing activities CASH FLOWS FROM FINANCING ACTIVITIES
(91,041,973) 9,140,800 1,067,273 (2,757,917) (209,288) 63,185 (83,737,920)
(47,836,997) 10,969,303 1,896,817 (1,776,322) (30,000) 13,997 (36,763,202)
(302) (67,769) (68,071) 12,773 (8,226) 1,701,088 1,692,862
(318) (93,853) (94,171) (256) 5,504 1,692,863 1,698,367
Payments of lease obligations Dividend paid Net cash (used) in financing activities Effects of exchange differences on translation of the net assets of foreign branches, subsidiary and joint venture 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
(27,310) (8,060,510) (8,087,820) (21,955) 472,645 32 145,390,674 145,863,319
(25,915) (5,820,338) (5,846,253) 1,097,011 (706,425) 146,097,099 145,390,674
Chairman & President
Director
Director
Director
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Consolidated Statement of Comprehensive Income

2009 2010 US Dollars in '000 (Restated ) 85.8845 203,169 206,538 2010 2009 Rupees in '000 (Restated ) 17,738,405 17,449,042
Profit after taxation for the year Other comprehensive income:
12,773 215,942
(256) 206,282
Exchange adjustments on translation of net assets of foreign branches, subsidiary and joint venture Total comprehensive income for the year - net of tax Total comprehensive income attributable to:
(21,955) 17,716,450
1,097,011 18,546,053
215,963 (21) 215,942
207,108 (826) 206,282
Share holders of the bank Non-controlling interest
17,787,349 (70,899) 17,716,450
18,547,822 (1,769) 18,546,053
Surplus arising on revaluation of assets has been reported in accordance with the requirements of the Companies Ordinance, directives of the State Bank of Pakistan in a separate account below equity. 1984 and the
Director
Director
Director
138
Consolidated Statement of Changes in Equity

Share capital Attributable to the shareholders of the bank R eserves C apital R evenue U nappropriated profit Exchange G eneral Statutory Translation Sub Total N on C ontrolling Interest Total
---------------------------------------------------- R upees in '000 ---------------------------------------------------B alance as at January 1, 2009 C om prehensive incom e Profit after tax for the year ended ber 31, 2009 [R estated (note D ecem 21.4.3)] O ther com prehensive incom e - net of tax Transferred from surplus on revaluation of fixed assets to unappropriated profit - net of tax Transfer to statutory reserve Transactions w ith ow ners Issue of bonus shares (20% ) C ash dividend (R s. 6.5 per share) B alance as at D ecem ber 31, 2009 1,793,95 1 10,763,70 2 7,529,15 6 15,344,56 5 521,33 8 (1,793,951 ) (5,830,338 ) 61,696,59 4 (5,830,338 ) 95,855,35 5 110,93 0 (5,830,338 ) 95,966,28 5 8,969,75 1 6,432,14 5 13,523,38 0 521,33 8 53,567,32 3 83,013,93 7 112,69 9 83,126,63 6
1,097,01 1 1,097,01 1 -
1,821,18 5
17,450,81 1 17,450,81 1 123,93 4 (1,821,185 )
17,450,81 1 1,097,01 1 18,547,82 2 123,93 4 -
(1,769) (1,769) -
17,449,04 2 1,097,01 1 18,546,05 3 123,93 4 -
B alance as at January 1, 2010 A cquisition of N B P Fullerton A sset M anagem ent [Form erly N ational Asset Fullerton M anagem ent (Note 9.9.1)] C om prehensive incom e Profit after tax for the year ended ber 31, D ecem 2010 O ther com prehensive incom e - net of tax Transferred from surplus on revaluation of fixed assets to unappropriated profit - net of tax Transfer to statutory reserve Transactions w ith ow ners Issue of bonus shares (25% ) C ash dividend (R s. 7.5 per share) B alance as at D ecem ber 31, 2010
10,763,70 2
7,529,15 6
15,344,56 5
521,33 8
61,696,59 4
95,855,35 5
110,93 0
95,966,28 5
458,04 5
458,04 5
(21,955) (21,955) -
1,756,32 1
17,809,30 4 17,809,30 4 117,73 8 (1,756,321 )
17,809,30 4 (21,955) 17,787,34 9 117,73 8 -
(70,899) (70,899) -
17,738,40 5 (21,955) 17,716,45 0 117,73 8 -
2,690,92 7 13,454,62 9
521,33 8
(2,690,927 ) (8,072,777 ) 67,103,61 1
(8,072,777 ) 105,687,66 5
498,07 6
(8,072,777 )
7,507,20 106,185,741 17,100,88 1 6
The annexed notes 1 to 44 and A nnexure I, II and III form an integral part of these consolidated financial statem ents.
Director
Director
Director
139
Notes to the Consolidated Financial Statements

THE GROUP AND ITS OPERATIONS 1.1 The "Group" consists of: Holding Company National Bank of Pakistan (the bank) Note Subsidiary Companies NBP Leasing Limited JSC Subsidiary Bank of NBP in Kazakhstan NBP Exchange Company Limited NBP Modaraba Management Company Limited Taurus Securities Limited NBP Fullerton Asset Management Limited (formerly Fullerton Asset Management National Limited) Cast-N-Link Products Limited Agriculture National Limited Percentage Holding 2010 2009 % % 100.00 100.00 100.00 100.00 58.32 9.9.1 9.9 9.9.2 54.00 76.51 100.00 100.00 100.00 100.00 58.32 27.00 76.51 100.00 1.
The Group is principally engaged in commercial banking, modaraba management, brokerage, leasing,currency remittances, asset management, exchange transactions and investment foreign advisory Brief profile of the holding company and subsidiaries is as services. follows: National Bank of Pakistan The bank was incorporated in Pakistan under the National Bank of Pakistan Ordinance, 1949 and is listed on all the stock exchanges in Pakistan. It's registered and head office is situated at I.I. Chundrigar Road, Karachi. The bank is engaged in providing commercial banking and related services in Pakistan and overseas. The bank also handles treasury transactions for the Government of Pakistan (GoP) as agent to the State Bank of Pakistan (SBP). The bank operates 1,266 (2009: 1,265) branches an in Pakistan and 23 (2009: 22) overseas branches (including the Export Processing Zone branch, The bank also provides services as trustee to National Investment Trust (NIT), LongKarachi). Term Fund (LTCF) and Endowment Fund for student loans Credit scheme. NBP Leasing Limited, Pakistan NBP Leasing Limited (NBPLL) was incorporated in Pakistan on November 7, 1995 as a public limited unquoted company under the Companies Ordinance, 1984. The registered office of NBPLL is situated at 4th Floor, P.R.C. Towers, M.T. Khan Road, Karachi. NBPLL is principally engaged in the business of leasing as licensed under the Non-Banking Finance Companies Rules, 2003 (the NBFC Rules). NBPLL engaged previously in the business of discounting / trade of negotiable instruments which was also has discontinued, since May 15, 2008 due to changes in Non-Banking Finance Companies been and Notified Entities Regulations, 2008. JSC Subsidiary Bank of NBP in Kazakhstan JSC Subsidiary Bank of NBP in Kazakhstan (JSC) is a joint-stock bank, which was incorporated in the Republic of Kazakhstan in 2001. JSC conducts its business under license number 25 dated October (initial license was dated December 14, 2001) and is engaged in providing 29, 2005 commercial banking services. The registered office of JDC is located at 105, Dostyk Ave, 050051, Almaty. NBP Exchange Company Limited, Pakistan NBP Exchange Company Limited (NBPECL) is a public unlisted company, incorporated in Pakistan on September 24, 2002 under the Companies Ordinance, 1984. NBPECL obtained license for commencement of operations from State Bank of Pakistan (SBP) on November 25, 2002 and commencement of business certificate on December 26, 2003 from the Securities and Exchange Commission of Pakistan
140

(SECP). The registered office of NBPECL is situated at Shaheen Complex, M.R.Kiryani Road, Karachi. NBPECL in foreign currency remittances and exchange transactions. NBPECL has 12 branches (2009: 4 engaged is branches). NBP Modaraba Management Company Limited, Pakistan NBP Modaraba Management Company Limited (NBPMMCL) is a public unlisted company, incorporated in Pakistan on August 6, 1992. Its registered office is at 26 - Mclagon Road, Lahore. The principal purpose of the NBPMMCL is to float manage modarabas. NBPMMCL at present is managing First National Bank and Modaraba. Taurus Securities Limited, Pakistan Taurus Securities Limited (TSL) is a public unlisted company, incorporated in Pakistan on June 27,1993 under the Companies Ordinance, 1984. The registered office of TSL is situated at 6th Floor, Progressive Plaza, Beaumont Road, Civil Karachi. It is engaged in the business of stock brokerage, investment counseling, and fund placements. TSL is Lines, aorporate member of the Karachi Stock Exchange (Guarantee) c Limited. NBP Fullerton Asset Management Limited (formerly National Fullerton Asset Management Limited) NBP Fullerton Asset Management Limited (formerly National Fullerton Asset Management Limited), (the company), was incorporated in Pakistan as public limited company on August 24, 2005 under the Companies Ordinance, 1984 and obtained certificate for commencement of business on December 19, 2005. Subsequently, effective from July 09, 2010 the name of the company has changed to NBP Fullerton Asset Management Limited (NAFA). The main sponsors of NAFA are National Bank of Pakistan and Alexandra Fund Management Pte. Limited (a member of Fullerton Fund Management Group, Singapore). The company is mainly involved in the business of asset management and investment advisory The company has been issued license by the Securities and Exchange Commission of Pakistan (SECP) to services. carry on business of asset management services and investment advisory services as a Non-Banking Finance Company (NBFC) under section 282C of the Companies Ordinance, 1984 and under the Non-Banking Finance Companies and Notified Entities Regulations, 2008. The principal / registered office of the company is situated at 9th Floor, Adamjee Chundrigar Road, House, I.I. Karachi. The Pakistan Credit Rating Agency Limited has assigned management quality rating AM2- to NBP Fullerton Asset Management Limited. As at December 31, 2010 the company is managing the following funds and discretionary portfolio; Type to Fund NAFA Income Opportunity Fund, formerly NAFA Cash Fund Income NAFA Fund Islamic Aggressive Income Fund, formerly NAFA Islamic Income NAFA Fund Islamic Multi Asset NAFA Fund Multi Asset NAFA Fund Stock Fund NAFA NAFA Government Securities Liquid Fund Savings Plus NAFA Fund Riba Free Savings NAFA Fund Asset Allocation NAFA Fund Discretionary Portfolio BASIS OF CONSOLIDATION Open end Fund Open end Fund Open end Fund Open end Fund Open end Fund Open end Fund Open end Fund Open end Fund Open end Fund Open end Fund
1.2 -
The consolidated financial statements include the financial statements of the bank (holding company) and its subsidiary companies together - "the Group". Subsidiary companies are fully consolidated from the date on which more than 50% of voting rights are transferred or power to control the company is established and excluded from consolidation from the date to the Group of disposal or when the control is lost.
142
143
141
Notes to the Consolidated Financial Statements Notes to the ConsolidatedFinancial Statements Notes to the Consolidated Financial Statements
For the year ended December 31, 2010 For the year ended December 31, 2010
3.2 SBP has deferred the applicability of International Accounting Standard (IAS) 39, 'Financial - Instruments: and Measurement' and IAS 40, 'Investment Property' for Banking Companies through The financial statements of the subsidiaries are Assets Held for same reporting year as Recognition IFRS 5 (Amendments) "Non-currentprepared for the Sale and Discontinued the holding - forAmendments to IAS 126, 2002. Further,Financial to the notification of SECP dated April BSD company the purpose Circular Letter Operations" of consolidation, using consistent accounting No. 10 dated August "Presentation of according Statements" to IAS 7 "Statement of Cash policies. 28, Amendments 2008, the- IFRS - 7 "Financial Instruments: Disclosures" has not been made applicable for IAS 27 income "Consolidated and Separate Financial - banks. assets, Flows" (Amended) these standards subsidiary companies havein the preparation ofon a The liabilities, Accordingly, the requirements ofand expenses of have not been considered been consolidated Statements" line theseline basis. 27 (as revised in 2008) "Consolidated and Separate Financial valued in IAS by consolidated financial statements. However, investments have been classified and accordance Statements" IAS 28 of revised in 2008) "Investments in with the requirements (asvarious circulars issued by Associates" IFRIC 15 "Agreement interest) in equity Real - SBP. Non-Controlling Interest / (minorityfor Construction of of the subsidiary companies are measured at fair as of Estate" revised International Financial Reporting from period 3.3 Applicationof the acquisition date for all the subsidiaries acquiredStandards beginning on or after IFRIC 17 "Distributions of Non-cash Assets to Owners" new and value (IFRSs) whereas Non-Controlling Interest / (minority interest) of previously acquired subsidiary January 1, 2010 3.3.1 The following The applicationoperation and of net assets of subsidiary companies attributable to will is measured at standards, of of Improvements to IFRSs issued in 2009 hasaccounting standards the portion amendments and interpretations of approved not had any material beinterest not on amounts reported in these consolidated financial effective is accounting periods beginning on or after January 01, which for effect by holding owned 2010: 3 (as revised in 2008) Business IFRS company. statements. 3.3.3 The following intra-group balances and and interpretationsbeen - Combinations Material standards, amendments transactions have of approved accounting standards will beIFRS 3 (2008) has been periods in the current or after January 01, 2011 or combinations for which eliminated. effective for accounting applied beginning on year prospectively to business acquisition date is on or after 1 had applied in accordance with Exchange transitional of later:The management of the bankJanuary 2010to the Securities andthe relevantCommissionprovisions. - the adoption Financial instruments introduces business section 237 of classification and measurement - ItsPakistanfor the exemption accounting fornew requirements for the the the current Ordinance, impact of IFRS 9 has affected the from the requirements of combinations in Companies year. The 1984 (SECP) the application of IFRS 3(2008) istwo subsidiaries namely National Agriculturethe International of in financial assets and financial as respect of consolidating its liabilities and for their derecognition. While Limited (NAL) and Cast-Nfollows: AccountingBoard has prescribed the effective date period beginning on or afterdated July 07, 2010 Link Standards Limited (CNL). The SECP, vides its letter EMD/233/627/2002-1720 January 1, 2013 Products IFRS 3 (2008) allows a choice on a transaction-by-transaction basis for the measurement of nonwith application permitted, the Securities and Exchange Commissionthat investments the State in under earlier 237(8) of the Companies Ordinance, 1984, based on the fact of Pakistan and of the bank Section controlling the date of acquisition (previously referred to as interests at Bank CNL are notstill not notified its effective of 0.0003% of the locally. As a of the bank and the no NAL of Pakistan have material and compromise date for adoption total assets result, there will be and minority either at fair value or at the non-controlling interests share of recognised identifiable net assets interests) impact Group's financial statement till IFRS 9 is investment on the from consolidation of have been fully provided for, granted the exemption acquisition of NBP of NAL and CNL in its the acquiree. In the current year, in accounting for the Fullerton Asset notified. financial statements for the year ended December 31, Management Limited (formerly National Fullerton Asset Management Limited), the bank has elected to measure 2010. - the 12 Deferred Tax: Tax fair value at the date of acquisition. Consequently, the12). The amendment IAS Recovery of Underlying Assets (Amendments to IAS goodwill recognised non-controlling interests at 2. BASISIAS 12 of that acquisition includes the beginning the or after January 01, the fairEarlier of the nonOF into respect is effective for annual periods impact of on difference between 2012. value application is PRESENTATIONThe limited scope amendmentsamount of theonly when an entity electsthe use the fair permitted. controlling their share of the recognised are relevant identifiable net assets of to interests and value for model 2.1 acquiree. measurement directives Investment Property. the amendments introduce athe shifting of In accordance with the in IAS 40 of the Federal Government of Pakistan regarding rebuttablesystem to such circumstances, an has issued various is recovered time to through the presumption that in Islamic modes, the SBP costs to be accounted for separately time. banking IFRS 3 (2008) requires acquisition-related investment propertycirculars fromentirely from the sale. of Permissible form business trade relatedleading to those costs being recognised of goods by the in profit and loss account combination, generally mode of financing includes purchase as an expense bank from their - ascustomers IAS 24 whereasresale to them atwere accounted for asfor annual deferredthe and immediate previously they appropriate mark-up part of the cost of payment on or The incurred,(Revised), Related party disclosures (effective in price on periods beginning basis.after January purchases 1, 2011) - arising under these clarifies and are not reflected in these consolidated financial and sales acquisition. The revised standardarrangementssimplifies the definition of a related party and removes the such but are restricted to thechanges of facility actually affected the appropriatefor requirement year, the above amount in disclose details of all transactions with portion of markas current In statements for government-related entities topolicies haveutilized and theaccounting the the acquisition the government of up other27% ownership of NBP Fullerton Asset Management Limited (formerly National Fullerton and additional government-related entities. This amendment will result in some changes in thereon. disclosures. Asset Management Limited) as - follows: (Amendment) Financialbranches of the bank have complied withannual periods beginning on IAS 32 However, the Islamic Banking Instruments: Presentation (effective for the requirements set out or - Islamic Financial Accounting Standards issued by the Institute of loss addresses very under afterThe Impact of transaction cost charged to consolidated profit and Chartered Accountants of the February 1, 2010) Classification of rights issues - The amendment account is the accounting under the provisions of the Companiesother than the functional currency of theof the Pakistan for rights issues that are denominated in a currency Ordinance, 1984. Key financial figures andinsignificant. notified - Due issuer. certain conditions of non-controlling interest in are now classified as equity regardlessvalue Islamic to measurement are have been disclosed at fair value, the these financial Provided branches of the bank met, such rights issues Annexure III toamount of goodwill and of banking of the non-controlling interest increaseddenominated. Previously, these issues had to be accounted statements. currency in which the exercise price is by Rs. 301.367 for derivative liabilities. This amendment will have no statement of financial position, consolidated as million 2.2 The US Dollar amounts shown on the consolidated impact on the Group's financial 3.3.2 New / revised standards and interpretations to existing standards effective from current period statements. profit and loss account, consolidated statement of comprehensive income and consolidated cash early adopted but not relevant to the information solely for the convenience of readers. For or - or flow 13 (Amendment) 'Customer Loyalty Programmes' (effective from annual periods onthe purpose IFRIC statement are stated as additional Group after of January 1, 2011). The amendment clarifies that theto 1 US Dollar has been used for 2008, 2009 and conversion to US Dollars, the rate of Rs. 85.8845 fair value of award credits take into account The following standards (revised or amended) and interpretations became effective for the current the it was the prevalentincentives that otherwise would be offered to customers that have not 2010 amount of discounts or rate as on December 31, as financial early adopted, but are either not relevant or do not have any material effect on the period or earned 2010. the award credits. This amendment will have no impact on the Group's financial consolidated financial statements of the statements. 3. STATEMENT OF Group: IFRS 2 (Amendments) "Share-based Payments - Group cash-settled share-based COMPLIANCE Extinguishing Financial Liabilities with Equity Instruments (effective for annual - IFRIC payment 19 transactions" periods consolidated July 1, 2010) This have been prepared in accordance with approved beginning on or after financial statements Interpretation addresses the accounting by an entity when 3.1 These the of a financial liability are renegotiated and accounting standards comprise of such accountingas applicable in the Government of result in the entity launched a scheme for the terms "On August 14, 2009, Pakistan. Approved Pakistan (GoP) hasissuing equity instruments standards to a of of the ownedto extinguish all orthe bank. Under the liability. Accounting Standards Board 12% International creditor state entity Standards (IFRS) part of the financial scheme It requires a beenor loss to Financial Reporting entities including issued by the International a Trust has gain formed and employees be and of Financial Accounting Standardsof Pakistan will by the Institute to Chartered Accountants recognised in profit or by the Stateis measured as the difference between the carrying amount of Islamic shares held loss, which Bank (IFAS) issued be transferred of the the the Trust. areand the fair value of the equity instruments 1984, the requirements of the of financial liability notified under the Companies Ordinance, issued. If the fair value of the Pakistan as equity Since issued the Banking Companies Ordinance, 1962 and directives the be measured to Companies 1984, cannot be reliably measured, a equity instruments should Securities and instruments the scheme has significant impact onthelarge number of SOEs, issued under the Ordinance, reflectCommission and the State Bank of Pakistan.This amendment will have exemption on the Companies of the financial liability extinguished. Wherever the entities for no impact the fair value1984 of Pakistan (SECP) was approached by some requirements of the from Ordinance, Exchange Group's Companies 1984, the Banking Companies Ordinance, 1962 (IFRS-2), if issued under the financial Ordinance, International Financial Reporting Standard Share Based Payment or directives applicable, we understand statements. has already received a of Pakistan differ with the requirements of IFRS or IFAS, Companies 1984 and the State Bank recommendation from the Institute of Chartered Accountants that Ordinance, SECP the of Pakistan (ICAP) and it is expected 1984, the Banking Companies Ordinance, if required, will requirements of the Companies Ordinance, that appropriate exemption from IFRS-2,1962 or the be issued. Accordingly, the above mentioned scheme has not been accounted for under requirements of the said directives shall prevail. the requirements of IFRS-2 in the consolidated financial statement of the bank for year ended December 31, 2010
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Amendments to IFRIC 14 IAS 19 The Limit on a Defined Benefit Assets, Minimum Funding Requirements and their Interaction (effective for annual periods beginning on or after January 01, 2011). These amendments remove unintended consequences arising from the treatment of prepayments where there is a minimum funding requirement. These amendments result in prepayments of contributions in certain circumstances being recognised as an asset rather than an expense. This amendment is not likely to have any impact on the Groups financial statements. - "Improvements to IFRSs 2010 In May 2010, the IASB issued improvements to IFRSs 2010, which comprise of 11 amendments to 7 standards. Effective dates, early application and transitional requirements are addressed on a standard by standard basis. The majority of amendments are effective for annual periods beginning on or after January 1, 2011. The amendments include list of events or transactions that require disclosure in the interim financial statements and fair value of award under the customer loyalty programmes to take into account the amount of discounts credits or incentives that otherwise would be offered to customers that have not earned the award credits. Certain amendments will result in increased disclosures in the Group's financial of these statements. BASIS OF MEASUREMENT These consolidated financial statements have been prepared under the historical cost convention except for revaluation of land and buildings are stated at revaluation amount and valuation of certain investments, in respect of certain forward exchange contracts and derivative financial instruments commitments are carried at fair value. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 5.1 Business Combination Acquisitions of businesses are accounted for using the acquisition method. The consideration a business combination is measured at fair value, which is calculated as the sum of transferred in the acquisition-date fair values of the assets transferred by the bank, liabilities incurred by the bank to the former owners of the acquiree and the equity interests issued by the bank in exchange for control of acquiree. Acquisition-related costs are recognised in profit and loss account as the incurred. At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at fair value at the acquisition their date. Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer's previously held equity in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable interest assets and the liabilities assumed. If, after reassessment, net of the acquisition-date amounts of acquired the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, of any non-controlling interests in the acquiree and the fair value of the the amount acquirer's held interest in the acquiree (if any), the excess is recognised immediately in profit or previously loss bargain purchase as a gain. Non-controlling interests that are present ownership interests and entitle their holders to aroportionate share of the Group's net assets in the event of liquidation is measured at fair value p at date of the the acquisition. When a business combination is achieved in stages, the bank's previously held equity interest in the acquiree is remeasured to fair value at the acquisition date (i.e. the date when the bank obtains control) resulting gain or loss, if any, is recognised in profit or loss and the account.
4.
5.
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Notes to the Consolidated Financial StatementsStatements Notes to the Consolidated Financial

5.2 Goodwill Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the subsidiary company. For the purposes of impairment testing, goodwill is allocated to each of the bank's cash-generating units (or entities of cash-generating units) that is expected to benefit from the synergies of the combination. A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit on a prorata based on the carrying amount of each asset in the unit. Any impairment loss for goodwill basis is recognised directly in the consolidated profit and loss account. An impairment loss recognised for goodwill is not reversed in subsequent periods. On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or loss on disposal. 5.3 Cash and cash equivalents Cash and cash equivalents include cash and balances with treasury banks and balances with other banks in current and deposit accounts less overdrawn nostro accounts. 5.4 Investments Investments other than those categorised as held-for-trading are initially recognised at fair value which transactions costs associated with the investments. Investments classified as held-for-trading includes are initially recognised at fair value, and transaction costs are expensed in the consolidated profit and loss account. All regular way purchases / sales of investment are recognised on the trade date, i.e., the date the Group to purchase / sell the investments. Regular way purchases or sales of investment require commits delivery of securities within the time frame generally established by regulation or convention in the market place. The Group has classified its investment portfolio, except for investments in subsidiaries, associates and ventures, into Held-for-trading, Held-to-maturity and Available-for-sale portfolios as joint follows: Held-for-trading These are securities which are acquired with the intention to trade by taking advantage of short-term market / interest rate movements and are to be sold within 90 days. These are carried at market value, with the related surplus / (deficit) on revaluation being taken to consolidated profit and loss account. Held-to-maturity These are securities with fixed or determinable payments and fixed maturity that held with the intention and ability to hold to maturity. These are carried at amortised are cost. Available-for-sale These are investments that do not fall under the held-for-trading or held-to-maturity categories. These are carried at market value except for incase of unquoted where market value is not available, which are carried at cost less provision for securities diminution any. Surplus / (deficit) on revaluation is taken to surplus / (deficit) on revaluation in value, if of assets account shown below equity. On derecognition or impairment in quoted available-forsale investments, the cumulative gain or loss previously reported as 'surplus / (deficit) on revaluation of assets' below equity is included in the consolidated profit and loss account for the period. Provision for diminution in value of investments for unquoted debt securities is calculated as per the SBP's Prudential Regulations.
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Held-for-trading and quoted available-for-sale securities are marked to market with reference to ready quotes on Reuters page (PKRV) or MUFAP or the Stock Exchanges. Associates Associates are all entities over which the Group has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for under the equity method of accounting. However, in case where associates are considered as fully impaired and financial statements are not available these investments are stated at less provision. cost Under the equity method, the Groups share of its associates post-acquisition profits or losses is recognized in the consolidated profit and loss account, its share of post-acquisition movements in reserves is recognized in reserves. The cumulative post-acquisition movements are adjusted against the carrying of the investment. When the Groups share of losses in an associate equals or exceeds its amount interest in the associate, including any other unsecured receivables, the Group does not recognize further losses, it has incurred obligations or made payments on behalf of the unless associate. Joint venture - The Group has interests in joint venture which is jointly controlled entity. A joint venture is contractual arrangement whereby two or more parties undertake an economic activity that is subject to a joint control and includes a jointly controlled entity that involves the establishment of separate entity in which each venturer has an interest. The Group accounts for its interest in joint venture using the equity of method accounting. The carrying values of investments are reviewed for impairment when indications exist that the carrying values may exceed the estimated recoverable amounts. Discount of negotiable instruments These are stated at amortized cost less provision for doubtful debts, if any. The provision is made in accordance with the SECP Prudential Regulations for Non-Banking Finance Companies. Repurchase and resale agreements Securities sold with a simultaneous commitment to repurchase at a specified future date (repos) continue to be recognised in the consolidated statement of financial position and are measured in accordance with accounting policies for investment securities. The counterparty liability for amounts received under these agreements is included in borrowings. The difference between sale and repurchase price is treated as mark-up / return / interest expense and accrued over the life of the repo agreement using effective yield method. Securities purchased with a corresponding commitment to resell at a specified future date (reverse repos) are not recognised in the consolidated statement of financial position, as the Group does not obtain control securities. Amounts paid under these agreements are included in lendings to financial over the institutions. The difference between purchase and resale price is treated as mark-up / return / interest income and accrued over the life of the reverse repo agreement using effective yield method. Net investment in lease finance Leases where the Group transfers substantially all the risk and rewards incidental to ownership of the assets to the lessee are classified as finance leases. Net investment in lease finance is recognised at an amount equal to the aggregate of minimum lease payment including any guaranteed residual value and excluding unearned finance income, write-offs and provision for doubtful lease finances, if any. The provision against lease finance is made in accordance with the requirements of the NBFC Regulations andinternal criteria as approved by the Board of Directors of the NBPLL. Derivative financial instruments Derivative financial instruments are initially recognised at fair value on the dates on which the derivative contracts are entered into and are subsequently re-measured at fair value using appropriate valuation All derivative financial instruments are carried as assets when fair value is positive techniques. and liabilities when fair value is negative. Any change in the fair value of derivative instruments is taken to the consolidated profit and loss account.
5.5
5.6
5.7
5.8
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5.9 Financial instruments All the financial assets and financial liabilities are recognized at the time when the Group becomes a party to the contractual provisions of the instrument. A financial asset is derecognised where (a) the rights to receive cash flows from the asset have expired; or (b) the Group has transferred its rights to receive cash from the asset or has assumed an obligation to pay the received cash flows in full without flows material a third party under a 'pass-through' arrangement; and either (i) the Group has delay to transferred all the risks and rewards of the asset, or (ii) the Group has neither transferred nor substantially retained substantially all the risk and rewards of the asset, but has transferred control of the asset. A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. Any gain or on derecognition of the financial assets and financial liabilities are taken to income loss currently. 5.10 Advances Advances are stated net off specific and general provisions. Provisions are made in accordance with the requirements of Prudential Regulations issued by SBP and charged to the consolidated profit and loss account. These regulations prescribe an age based criteria (as supplemented by subjective evaluation of advances by the banks) for classification of non-performing loans and advances and computing provision thereagainst. Such regulations also require the bank to maintain general provision / / allowance allowance against consumer advances at specified percentage of such portfolio. Advances are written off where there realistic prospects of recovery. are no 5.11 Operating fixed assets and depreciation Property and equipment Owned assets Property and equipment except land and buildings are stated at cost less accumulated depreciation and impairment losses, if any. Land is stated at revalued amount. Buildings are stated at revalued amount less accumulated depreciation and impairment, if any. Cost of fixed assets of foreign branches include differences arising on translation at year-end rates. Depreciation is charged to profit and exchange loss account applying the diminishing balance method except vehicles, computers and peripheral equipment and furnishing provided to executives, which are depreciated on straight-line method at the rates stated in 11.2. Depreciation is charged from the month in which the assets are brought into use and note no depreciation is charged from the month the assets are deleted. Subsequent costs are included in the assets carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to the consolidated profit and loss account financial period in which they are during the incurred. Assets are derecognised when disposed or when no future economic benefits are expected from its use or disposal. Gains and losses on disposal of property and equipment are included in consolidated profit and account currently. loss The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each consolidated statement of financial position date. Land and buildings' valuation are carried out by professionally qualified valuers with sufficient regularity to ensure that their carrying amount does not differ materially from their fair value. The surplus arising on revaluation of fixed assets is credited to the Surplus on Revaluation of Assets" account shown below equity. The Group has adopted the following accounting treatment of depreciation on revalued assets, keeping in view the requirements of the Companies Ordinance, 1984 and SECP's SRO 45(1)/2003 dated January 13, 2003: - depreciation on assets which are revalued is determined with reference to the value assigned to such assets on revaluation and depreciation charge for the year is taken to the consolidated profit and loss account; and
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an amount equal to incremental depreciation for the year net of deferred taxation is transferred from Surplus on Revaluation of Fixed Assets account to unappropriated profit through consolidated changes in equity to record realization of surplus to the extent of the statement of incremental charge for the depreciation year. Leased assets Assets subject to finance lease are accounted for by recording the assets and the related liability. These are recorded at lower of fair value and the present value of minimum lease payments at the inception of lease and subsequently stated net of accumulated depreciation. Depreciation is charged on the basis to the owned assets. Financial charges are allocated over the period of lease term so as to similar provide a constant periodic rate of financial charge on the outstanding liability. Ijarah Assets leased out under 'Ijarah' are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Assets under Ijarah are depreciated over the period of lease term. However, in event the asset is expected to be available for re-ijarah, depreciation is charged over the economic the lifethe asset using straight line of basis. Ijarah income is recognised on a straight line basis over the period of Ijarah contract. Intangible assets Intangible assets are stated at cost less accumulated amortization and impairment losses, if any. Amortization is charged to income applying the straight-line method at the rates stated in note 11.3. The estimated useful life and amortisation method are reviewed at the end of each annual reporting period, witheffect of any changes in estimate being accounted for on a prospective the basis. Capital work-in-progress Capital work-in-progress is stated at cost. These are transferred to specific assets as and when assets are available for use. Impairmen t The carrying values of fixed assets are reviewed for impairment when events or changes in circumstances indicate that the carrying values may not be recoverable. If any such indication exists and where the carrying values exceed the estimated recoverable amounts, the fixed assets are written down to their recoverable amounts. The resulting impairment loss is taken to consolidated profit and loss account except for impairment loss on revalued assets which is adjusted against the related revaluation surplus to the extent that the impairment loss does not exceed the surplus on revaluation of assets. Where impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised recoverable amount but limited to the extent of the amount which would have been determined had there been no impairment. impairment loss is recognized as Reversal of income. 5.12 Taxation Current Provision of current taxation is based on taxable income for the year determined in accordance with the prevailing laws of taxation on income earned for local as well as foreign operations, as applicable to the respective jurisdictions. The charge for the current tax also includes adjustments wherever consideredrelating to prior year, arising from assessments framed during the necessary year.
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Deferred Deferred income tax is provided on all temporary differences at the consolidated statement of financial position date between the tax bases of assets and liabilities and their carrying amounts for financial purposes. reporting Deferred income tax assets are recognised for all deductible temporary differences and unused tax losses, to the extent that it is probable that taxable profits will be available against which the deductible temporary and unused tax losses can be differences utilised. The carrying amount of deferred income tax assets are reviewed at each consolidated statement of financial position date and reduced to the extent that it is no longer probable that sufficient taxable profit or deductible temporary differences will be available to allow all or part of the deferred income tax asset to be utilised . Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantionally enacted at the consolidated statement of financial position date. Deferred tax relating to gain / loss recognized in surplus on revaluation of assets is charged / credited to such account. 5.13 Employee benefits 5.13.1 Defined benefit plans Pension scheme The Group operates approved funded pension scheme for its eligible employees. The Group's determined based on actuarial valuation carried out using Projected Unit Credit costs are Method. gains / losses exceeding, the higher of 10% of present value of defined benefit Actuarial obligation the fair value of plan assets are recognized as income or expense over the or 10% of estimated working lives of the employees. Where the fair value of plan assets, exceeds the present value of defined benefit obligation together with unrecognized actuarial gains or losses and unrecognized past service cost, the Group reduces the resulting asset to an amount equal to the total of present any economic benefit in the form of reduction in future contributions to the plan value of and unrecognized actuarial losses and past service costs. Benevolent scheme The Group also operates an un-funded benevolent scheme for its eligible employees. Provision is made in the consolidated financial statements based on the actuarial valuation using the Projected Method. Actuarial gains / losses are recognized in the period in which they Unit Credit arise. Gratuity scheme The Group also operates an un-funded gratuity scheme for its eligible contractual employees. made in the consolidated financial statements based on the actuarial valuation Provision is using the Projected Unit Credit Method. Actuarial gains / losses are accounted for in a manner similar to pension scheme. Post retirement medical benefits The Group operates an un-funded post retirement medical benefits scheme for all of its employees. made in the consolidated financial statements for the benefit based on Provision is actuarial carried out using the Projected Unit Credit Method. Actuarial gains / losses are valuation recognised and loss account over the estimated working lives of in the profit employees.
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5.13.2 Defined contribution plan The Group operates an approved funded provident fund scheme covering all its employees. Equal monthly contributions are made by the Group and employees to the fund in accordance with the rules. fund 5.13.3 Retirement and other benefit obligations In respect of JSC Subsidiary Bank of NBP in Kazakhstan (JSC) The JSC withholds amounts of pension contributions from employee salaries and pays them to state pension fund. The requirements of the Kazakhstans legislation state pension system provides for calculation of current payments by the employer as a percentage of current total payments the to staff. This expense is charged in the period the related salaries are earned. Upon retirement all retirement benefit payments are made by pension funds selected by employees. 5.13.4 Other employee benefits Employees' compensated absences The Group accounts for all accumulating compensated absences when employees render service that increases their entitlement to future compensated absences. The liability is determined based on actuarial valuation carried out using the Projected Unit Credit Method. 5.14 Revenue recognition Income on loans and advances and debt security investments are recognized on a time proportionate basis that takes into account effective yield on the asset. In case of advances and investments classified Prudential Regulations, interest / mark-up is recognized on receipt under the basis. Interest / mark-up on rescheduled / restructured advances and investments is recognized in accordance with the Prudential Regulations of SBP. Fee, brokerage and commission income other than commission on letter of credit and guarantees and remuneration for trustee services are recognized upon performance of services. Commission on letters of credit and guarantees is recognized on time proportionate basis. Dividend income on equity investments and mutual funds is recognized when right to receive is established. Premium or discount on debt securities classified as held-for-trading, available-for-sale and held-to-maturity securities is amortised using the effective interest method and taken to consolidated profit and loss account. Gains and losses on disposal of investments are dealt with through the consolidated profit and loss account in the year in which they arise. The Group follows the financing method in accounting for recognition of finance lease. At the commencement of a lease, the total unearned finance income i.e. the excess of aggregate installment contract receivables plus residual value over the cost of the leased asset is amortized over the term of the lease, applying the annuity method, so as to produce a constant periodic rate of return on the net investment in finance leases. Initial direct costs are deferred and amortized over the lease term as a yield adjustment . The management fee is recognized in the accounts on accrual basis, which is calculated at predetermined rate of fee applied on the daily average net assets of the Fund(s). Processing, front end and commitment fees and commission are recognized as income when received. Rental income from operating leases is recognized on a straight-line basis over the term of the relevant lease.
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Profit on trading and revaluation of financial instruments is recognised on trade date basis and is taken to consolidated profit and loss account. 5.15 Foreign currencies translation Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates (the functional currency). The consolidated financial statements are presented in the Pak Rupees which is the Group's functional and presentation currency. Foreign currency transactions are converted into Rupees applying the exchange rate on the date of the respective transactions. Monetary assets and liabilities in foreign currencies and the assets / liabilities of foreign branches, and subsidiaries, net assets of associates and joint ventures are translated into Rupees at the rates of exchange prevailing at the consolidated statement of financial position date. Profit and loss account balances of foreign branches, subsidiaries are translated at average exchange rate prevailing during the year. Gains / losses on translation are included in the consolidated profit and loss account except net gains / losses arising on translation of net assets of foreign branches, subsidiaries, joint ventures, which is credited to an exchange equalization reserve and reflected associates and under reserves. Items included in the financial statements of the bank's foreign branches are measured using the currency of the primary economic environment in which the bank operates (the functional currency). 5.16 Provision for off balance sheet obligations Provision for guarantees, claims and other off balance sheet obligations is made when the Group has legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of amount can be made. Charge to consolidated account is stated net of expected profit and loss recoveries. 5.17 Off setting Financial assets and financial liabilities are only set off and the net amount is reported in the consolidated financial statements when there is a legally enforceable right to set off and the Group intends either to settlenet basis, or to realize the assets and to settle the liabilities on a simultaneously. 5.18 Fiduciary assets Assets held in a fiduciary capacity are not treated as assets of the Group in the consolidated statement of financial position. 5.19 Dividend and other appropriations Dividend and appropriation to reserves, except appropriation which are required by the law, are recognised as liability in the consolidated financial statements in the year in which these are approved. 5.20 Segment Reporting A segment is a distinguishable component of the Group that is engaged either in providing product or services (business segment), or in providing products or services within a particular economic environment segment), which is subject to risks and rewards that are different from those of (geographical other segments. 5.20.1 Business segments Corporate finance Corporate banking includes, services provided in connection with mergers and acquisition, privatization, securitization, research, debts (government, high yield), underwriting, equity, syndication, IPO and secondary private placements.
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Notes to the Consolidated Financial Statements Notes to the Consolidated Financial Statements
Trading and sales The amount of general provision against consumer advances is determined in accordance with the It includes fixed income, equity, relevant prudential regulations and SBP foreign exchanges, commodities, credit, funding, own directives. position lending and repos, brokerage debt and prime securities, brokerage. During the year, the management has changed the method of computing provision against Retail non-performing advances as allowed under Prudential Regulations and explained in note 10.5.banking b) Fair value of derivatives It includes retail lending and deposits, banking services, trust and estates, private lending and deposits, banking service, trust and estates investment advice, merchant / commercial and The privateand of derivatives which are not quoted in active markets are determined by using labels fair values valuation retail. techniques. The valuation techniques take into account the relevant interest and exchange rates over Commercial the term of the banking contract. c) Impairment of Available-for-sale project finance, real estate, export finance, trade finance, Commercial banking includes investments guarantees, bills of exchange and factoring, lending, The deposits. Group considers that Available-for-sale equity investments and mutual funds are impaired whenhas been a significant or prolonged decline in the fair value below its cost. This determination therePayment and of settlement or prolonged requires judgment. In addition, impairment may be appropriate what is significant when is evidence of deterioration in the financial transfer, clearing and industry and thereIt includes payments and collections, funds health of the investee, sector settlement. performance. Agency services d) Held-to-maturity investments It includes escrow, depository receipts, securities lending (customers), corporate actions, issuer The Group follows the guidance provided in SBP circulars on classifying non-derivative financial and paying assets agents. with fixed or determinable payments and fixed maturity as held-to-maturity. In making this judgment, 5.20.2 bank evaluates its intention and ability to hold such investments to the Geographical segments maturity. e) Income taxes operates in following geographical The Group regions: In making the estimates for current and deferred income taxes, the management looks at the Pakistan income Pacific (including appellate and Karachi certain issues in the tax law and the decisions ofSouth Asiaauthorities onExport Processing past. There are Asia certain where banks view differs with the view taken by the income tax department and such Zone) matters Europe amounts as contingent are shown States of United liability. America Middle East f) Fixed assets, depreciation and Central amortisation Asia 5.21 Earnings per estimates of the depreciation / amortisation method, the management uses method In making share which reflects the pattern in which economic benefits are expected to be consumed by the Group. The The Groupapplied is reviewed at each financial year endshareif (EPS)isfor change in the expected EPS method presents basic and diluted earnings per and there a its shareholders. Basic is pattern calculated by dividing the future or loss attributable to ordinary in the assets, thethe Group by the of consumption of the profit economic benefits embodied shareholders of method would be weightednumberchange in shares outstanding during the year. Diluted EPS is determined by adjusting changed the of ordinary average to reflect the pattern. profit or loss attributable to ordinary shareholders and the weighted average number consolidated of g) Employee benefit ordinary shares outstanding for the effects of all dilutive potential ordinary shares, if any. There were no plans dilutive potential ordinary shares in issue at December 31, 2010. liabilities for employee benefits plans are determined using actuarial valuations. The The actuarial 5.22 Accounting estimates and valuations involve assumptions about discount rates, expected rates of return on assets, future judgments salary increases and future pension increases as disclosed in note 34. Due to the long term nature of these such estimates are subject to significant The preparation of consolidated financial statements in conformity with Approved Accounting plans, Standards uncertainty. requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Groups accounting polices. The estimates / judgments and associated assumptions used in the preparation of the consolidated financial statements are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The key areas of estimate and judgements in relation to these consolidated financial statements are as follows: a) Provision against non-performing advances The Group reviews its loan portfolio to assess amount of non-performing loans and determine provision required there against on a quarterly basis. While assessing this requirement various factors including the past dues, delinquency in the account, financial position of the borrower, value of collateral held and requirements of Prudential Regulations are considered.
154
155
Note 6. CASH AND BALANCES WITH TREASURY BANKS
N ote
201 0 Rupees in '000 9 200 ----- R upees in '00 0 -----
2010
2009
8 . LE In D IN G S T O F IN A N C IA L IN S T IT U T IO N S - net N hand C all m on ey le ndin gs R epurcState Bank of Pakistanndin gs (R eve rse R epo ) W ith hase ag reem ent le in Letter of currency ents accounts Local placem current
Local to financial institu tions Lendingscurrency deposit account - g ross Less: P rov ision held against le ndin gs Lendings to financial institu tions Foreign currency current account net Foreign currency deposit account Local currency Foreign currency
8 .2 8 .3 8 .46.1 8 .1
6.2 6.2 6.3
21 ,93 2,15 6 24 6,5 00 59,346,406 23 ,18 4,6729 1 59,346,435 (133 ,500 ) 23 ,05 1,17 1 2,183,736
6,551,208 49,397 8,588,450 17,372,791
11,277,999 2,690,449 1,006 ,015 13,968,448
18,356,176 284,000 50,649,271 29 19,793,176 50,649,300 (10 9,6 50) 19,683,526 1,705,892
5,117,677 58,171 16,848,820 23,730,560
7,169,663 2,568,259 1 ,15 3,0 00 9,737,922
8.1 Foreign currency lendings account P articu lars of collection - gross

Foreign currency placement account W ith other central banks in In foreign currenc ie s Foreign currency current accounts Foreign currency deposit accounts
In loc al curre ncy
6.4 6.5 32
23 ,18 4,67 1 15,324,162 23 ,18 4,67 1 9,645,189

24,969,351 115,657,025
19,793,176 17,826,903 19,793,176 14,723,829

32,550,732
8.2 The se carry m ark -up at rates ran gin g fro m 12.75% to 14% per annum (2 009: 12.4% to 12 .9% per annum ).
6.1
116,668,514
8.3 The se carry m ark -up1962. Companies Ordinance, at rates ran gin g fro m 12.75% to 13.9% pe r annum (20 09: 12% to 12 .8% per annum ).
These ecu rities mandatory reserves gainst lendings to financial 8.3.1 S represent held as collateral amaintained in respect of foreign currency deposits under FE-25 scheme, as prescribed by the SBP. institution s This represents US Dollar placements and carry interest at the rate of 0.67 % per annum (2009: 1.97% per annum) with maturities within two months. 1 0 20 2009 These balances pertain to the foreign branches and are held with central banks of respective countries. e meet g statutory g ive n a s These include balancesHto ld b y the ive n a s and central bank H e ld b y regulatory requirements of respective countries. bank co lla te ra l T o ta l bank c o lla te ra l T o ta l
This includes statutory liquidity reserves maintained with the SBP under Section 22 of the Banking
6.2
6.3
6.4
F u rth e r
F u rth e r
------------- R u p e e s in '0 are held with central banks of R u p e e s in '0 0 0 These balances pertain to the foreign branches and0 0 ------------- ----------------respective countries. These include balances to meet the statutory and central bank ----------------regulatory requirements. These carry M a rke t T re a suat the rate of 0.23%,5 90.25% per annum (2009: 9 4 ,7 5 1 1 6 ,6 9 0 ,7 9 9 interest ry 1 6 to 4 ,7 5 1 1 6 ,5 0.25% per annum). 1 6 ,6 9 0 ,7 9 9
6.5
B ills ta n In v e s tm e n t B o n d s 5 ,3 3 7 ,4 0 5 P a kis 2 1 ,9 3 2 ,1 5 6
5 ,3 3 7 ,4 0 5 2 1 ,9 3 2 ,1 5 6
1 ,6 6 5 ,3 7 7 1Not 5 6 ,1 7 6 8 ,3
e
1 200 5 ,3 7 7 ,6 6 201 0 ----- Rupees in '000 9 5 6 ,1 7 6 1 8 ,3 -----
7. BALANCES WITH OTHER BANKS 8.3.2 M ark et value of the s ecurities In (2 009: R s .18,791 m illion). Pakistan On current account On deposit account 8.4 T hese Outside Pakistan On current accounts On deposit accounts
under repu rcha se agreem ent lendings am oun t to R s. 22,184 m illion

12,61 2 342,01 354,62 2 (2009: 11.3 4% 4 20,01 8 354,95 374,97 8 to 1 8.5 % 6
carry m ark-u p a t rates ra nging from 11 .20% to 18 .5% per ann um

7.1 32
per an num ).
7.1 These include various deposits with correspondent banks and carry interest rates ranging from 0.05% to 9.0% per annum (2009: 0.11% to 7.5% per annum).
5,621,96 8 24,766,77 6 30,388,74 4 30,743,36 8
4,070,61 5 24,340,80 6 28,411,42 1 28,786,397
156

9. INVESTMENTS net Note
201 200 0 9 Held Given Held Given Total Total by as by as ban collatera ban collatera k -------------------------------------------- Rupees in '000' ---------------------------------------------l k l
9.1 Investments by type: Held-for-trading securities Market Treasury Bills Pakistan Investment Bonds shares of listed Ordinary companies Total Held-for-trading securities Available- for- sale securities Ordinary shares of listed companies Ordinary shares of unlisted companies Investment outside Pakistan Market Treasury Bills Preference shares Investment Pakistan Bonds GoP Foreign Currency Bonds Government Foreign Securities Foreign Currency Debt Securities Term Finance Certificates / Musharika and Sukuk Bonds Investments in mutual funds LoC Units NI(U)T NI(U)T Non-LoC Units NIT Equity Market Opportunity Fund Units Total Available- for- sale securities Held-to-maturity securities Government Compensation Bonds Investment Pakistan Bonds GoP Foreign Currency Bonds Government Foreign Securities Foreign Government Debt Securities Bonds, Participation Debentures, Term Certificates and Term Finance Certificates Total Held-to-maturity securities Investments in associates in joint Investments ventures Investments in subsidiaries Investments at cost Less: Provision for diminution in value of Investments Investments (net of provisions) Unrealized gain on revaluation of investments as Held-forclassified trading Surplus / (deficit) on revaluation of Available-for-sale securities Total investments at carrying value
9.1 3
5,278,69 3 732,25 3 533,67 7 6,544,62 3 9.1 2 18,853,29 6 1,053,19 8 19,906,49 4 9.6 463,29 5 155,716,03 2 294,76 0 16,201,89 7 3,193,09 3 214,66 3 3,254,11 9 61,799,38 9 971,57 4 1,397,61 9 600,00 0 1,147,50 0 265,160,43 5
5,278,69 3 732,25 3 533,67 7 6,544,62 3
1,987,27 2 221,27 5 170,38 3 2,378,93 0
1,987,27 2 221,27 5 170,38 3 2,378,93 0
9,051,79 6 302,80 1 9,354,59 7
18,853,29 61,053,19 8 19,906,49 4 463,29 5 164,767,82 8 294,76 0 16,504,69 83,193,09 3 214,66 3 3,254,11 9 61,799,38 9 971,57 4 1,397,61 9 600,00 0 1,147,50 0 274,515,03 2
15,507,40 2 753,11 4 16,260,51 6 463,29 5 91,064,76 8 294,03 3 11,117,14 2 3,021,99 0 424,07 8 1,983,37 9 29,001,44 0 1,041,13 5 1,042,43 9 1,530,00 0 157,244,21 5
15,507,40 2 753,11 4 16,260,51 6
463,29 5 23,504,63 114,569,39 0 8 294,03 3 1,213,24 12,330,38 7 3,021,990 9 424,07 8 1,983,37 9 24,717,87 7 29,001,44 01,041,13 5 1,042,43 9 1,530,00 0 181,962,09 2
9.5. 1 9.5. 2
9.4
8,817,94 1 1,407,07 7 114,84 2 2,885,12 8 13,224,98 8 1,645,12 9 2,574,16 4 1,24 5 289,150,58 4
8,817,94 1 1,407,07 7 114,84 2 2,885,12 8 13,224,98 8 1,645,12 9 2,574,16 4 1,24 5 298,505,18 1 (6,716,015 ) 291,789,16 6 6,73 0 9,282,60 2 301,078,49 8
1,132,96 3 8,702,40 4 371,58 4 1,392,16 8 8,629,73 0 10,508,47 7 22,108,24 8 1,185,08 5 2,412,26 1 3,24 5 185,331,98 4 (2,187,187 ) 183,144,79 7 2,35 5 9,466,43 1 192,613,58 3
1,132,963 263,66 1 263,66 1 24,981,53 8 24,981,53 8 -
8,966,065 371,58 4 1,392,16 8 8,629,73 0 10,508,47 7 22,371,90 9 1,185,08 5 2,412,26 1 3,24 5
9.3
9.7 9.8 9.9
9,354,59 7 9,354,59 7 -
210,313,52 2 (2,187,187 ) 208,126,33 5 2,35 5
9.1 0
(6,716,015 ) 282,434,56 9 6,73 0 9,317,23 7 291,758,53 6
9.11
20. 1
(34,635 ) 9,319,96 2
91 9,467,34 6 7 24,982,45 217,596,037 4
157

Note 9.2 Investments by segments Federal Government Securities Market Treasury Bills Pakistan Investment Bonds Government Compensation Bonds GoP Foreign Currency Bonds Ijarah Sukuk bonds 9.4 170,046,521 26,054,892 3,193,093 1,000,000 200,294,506 1,621,740 116,556,670 21,517,729 1,132,963 3,393,574 1,000,000 143,601,262 1,816,246 9.13 2010 2009 ---- Rupees in '000 -----
Foreign Government Securities Fully Paid up ordinary shares Listed companies Unlisted companies Debentures, Bonds, Participation Term Certificates, Term Finance Certificates, Musharika and Sukuk Bonds Listed Unlisted
19,386,973 1,053,198 20,440,171
15,677,785 753,114 16,430,899
2,694,993 60,989,524 63,684,517 3,368,961
2,406,437 36,103,480 38,509,917 10,613,109
Foreign Currency Debt Securities Other Investments NI(U)T LoC Units NI(U)T Non-LoC Units NIT Equity Market Opportunity Fund Units Investments in mutual funds Preference Shares Investment outside Pakistan Investments in associates Investments in joint ventures Investments in subsidiaries Investment at cost Less: Provision for diminution in value of investments Investments (net of provisions) Unrealized gain on revaluation of investments classified as Held-for-trading Surplus on revaluation of available-for-sale securities Total investments at carrying value 9.3 9.4 9.7 9.8 9.9
1,397,619 600,000 1,147,500 971,574 294,760 463,295 1,645,129 2,574,164 1,245 298,505,181 (6,716,015) 291,789,166 6,730 9,282,602 301,078,498
1,042,439 1,530,000 1,041,135 294,033 463,295 1,185,085 2,412,261 3,245 210,313,522 (2,187,187) 208,126,335 2,355 9,467,347 217,596,037
9.10
9.11 20.1
Market value of held-to-maturity investments is Rs. 10,730 million (2009: Rs. 19,651 million). These include Pakistan Investment Bonds amounting to Rs. 75 million (2009: Rs. 75 million) held by SBP as pledge against demand loans and TT / DD discounting facilities.
158

9.5 Investment in Mutual Funds managed by National Investment Trust Limited (NITL) 9.5.1 National Investment (Unit) Trust - [NI(U)T] The Group had investment in National Investment (Unit) Trust - LOC Holders Fund [NI(U)T LOC Holders Fund] units, which also included the units in respect of which the Government of Pakistan (GoP) had issued a letter of comfort (LOC) to the bank and three other banks (LOC holders) that in the event the redemption price of units of NI(U)T LOC Holders Fund fell promising below Rs. 13.70 per unit and the LOC holders desire to redeem their holding of units, the GoP would National Investment Trust Limited (NITL) in the redemption of such holdings at the rate facilitate of 13.70 per unit. The LOC had been extended from time to time and finally expired on Rs. December 31, 2009 after which the GoP approved a methodology for the settlement of LOC issue. According to the methodology; All underlying assets and liabilities of the NI(U)T LOC Holders' Fund would be apportioned investors of the Fund by dividing such net assets into distinct between the segments to the ratio of units held by each investor. Each segment would in turn be according bifurcated into two distinct asset categories, namely "Strategic Assets" and "Balance Assets"; The Strategic Assets would comprise of frozen shares of Pakistan State Oil ("PSO") and Sui Northern Gas Pipeline Limited ("SNGPL"). The Balance Assets would essentially constitute the remaining investment portfolio of the Fund. The Strategic Assets would be transferred to the bank at a rate to be determined and the cash received from the bank by the Fund would be paid to the LOC holders' after adjusting other receivables and payables and cash balances held by the Fund. The Group would keep these as frozen shares exactly on the same terms and conditions on which these were shares held by NIT.
9.5.2
The Balance Assets would be transferred in specie to the LOC holders. 2.5% of the Balance Assets of each segment would be transferred to NITL and 2.5% of the net realized pursuant to transfer of the Strategic Assets would be paid to cash NITL. Consequent to the implementation of the settlement mechanism outlined above the NI(U)T LOC Holders' Fund would stand terminated / dissolved. During the year meeting of NI(U)T - LOC Holders was held on November 11, 2010 in which all the Holders consented to the transfer of frozen shares (PSO and SNGPL) to the bank on LOC closing share price of October 13, 2010. A letter was also sent to the Privatization Commission (PC) to communicate about the settlement and obtain concurrence for transfer of the strategic assets to bank. PC responded subsequent to the year end on February 17, 2011 requiring that the new agreement would be signed between the bank, NITL and PC and the frozen shares after the transfer to the bank will remain frozen in the books of the bank on the same conditions as these by NITL. Pending completion of such formalities, management has not derecognized are held the banks investment in NI(U)T - LOC Holders' Fund and valued at the rate on October 13, 2010. NIT Equity Market Opportunity Fund The Goup's investment is Rs.1,148 million (2009: 1,530) in NIT Equity Market Opportunity Fund (NIT EMOF). NIT EMOF was established in the year 2008 as an open end mutual fund for the special purpose of equity market stabilization and is managed by National Investment Limited. As of the statement of financial position date, the net assets value of the Management NIT EMOF units held by the bank amounted to Rs.1,650 million (2009: Rs.1,807 million).
159

9.6 Investment outside Pakistan - Bank Al-Jazira (BAJ) The Group holds 17,500,000 (2009: 17,500,000) shares in Bank Al-Jazira (BAJ) incorporated in the Kingdom of Saudi Arabia, representing 5.83% (2009: 5.83%) holding in total equity of BAJ. The investment has been marked to market using closing price as quoted on the Saudi Stock Exchange in accordance with concurrence vide letter No. BSD/SU-13/331/685/2006 dated February 17, 2006. Rating of SBP Bank Al-Jazira is BBB+ by Capital Intelligence.
Investments in associates
9.7
Number of shares Unlisted Pakistan Emerging Venture Limited Information System Associates Limited National Fructose Company Limited Pakistan Insulation Limited Venture Capital Fund Management Kamal Enterprises Limited Mehran Industries Limited Tharparkar Sugar Mills Limited Youth Investment Promotion Society Khushhali Bank Limited Dadabhoy Energy Supply Company Limited K-Agricole Limited New Pak Limited National Commodity Exchange Limited Prudential Fund Management Listed National Fibres Limited First Credit and Investment Bank Limited Taha Spinning Mills Limited Land Mark Spining Mills Limited S.G. Fibres Limited Nina Industries Limited First National Bank Modaraba NAFA Income Fund NAFA Riba Free Fund NAFA Income Opportunity Fund (Formerly NAFA Cash Fund) NAFA Multi Asset Fund NAFA Stock Fund NAFA Islamic Aggressive Income Fund (Formerly NAFA Islamic Income Fund) NAFA Islamic Multi Asset Fund NAFA Governtment Securities Liquid Fund NAFA Savings Plus Fund 12,500,000 2,300,000 1,300,000 494,500 33,333 11,000 37,500 2,500,000 644,508 40,000,000 9,900,000 5,000 200,000 9,000,000 150,000
Percentage holding 33.33 21.89 39.50 24.79 33.33 20.37 32.05 21.50 25.00 23.45 23.11 20.00 20.00 30.00 20.00
Note
2010 2009 ----- Rupees in '000 ----51,415 1,719 6,500 695 400,000 32,105 90,000 582,434 243,039 2,501 39,710 218,535 49,060 96,394 21,432 51,752 36,691 46,755 57,022 59,671 78,350 30,934 30,849 1,062,695 1,645,129 (492,240) 1,152,889 51,415 1,719 6,500 695 400,000 32,105 30,000 522,434 259,194 2,501 39,710 218,535 49,060 93,651 662,651 1,185,085 (402,240) 782,845
17,119,476 20,000,000 833,800 4,199,227 3,754,900 4,906,000 7,500,000 2,080,775 5,009,987 3,601,691 4,410,752 7,500,000 7,500,000 7,500,000 3,000,000 3,000,000
20.19 30.77 20.59 34.68 25.03 20.27 30.00 4.11 20.62 1.05 5.91 5.75 31.71 29.11 0.41 4.84
9.7.4 9.7.4 9.7.4 9.7.4 9.7.4 9.7.4 9.7.4 9.7.4 9.7.4 9.7.1 9.10.1
Less: Provision for diminution in value of investments
9.7.1 Aggregate value of investments in associates (quoted) on the basis of latest available quoted prices amounts to Rs. 1,009.923 million (2009: Rs. 577.441 million). Due to low trade volumes of securities, management considers that there is no active market for these quoted investments, except for First Credit and Investment Bank Limited, NAFA Funds and First National Bank Modaraba, and therefore provision for impairment has been made against the same. 9.7.2 Associates with zero carrying amount, represent the investments acquired from former NDFC which have negative equity or whose operations were closed at the time of amalgamation.
160

9.7.3
The details of break-up value based on latest available financial statements of unlisted investments in associates are as follows:
Break-up value of bank's share Rupees in '000 1,577 24,219 2,630 5,681 (83,140) 487,254 (2,482) 103,952 (58,048)
Year ended Pakistan Emerging Venture Limited Information System Associates Limited Pakistan Insulation Limited Mehran Industries Limited Tharparkar Sugar Mills Limited Khushhali Bank Limited Prudential Fund Management Dadabhoy Energy Supply Company Limited National Commodity Exchange Limited June 30, 2010 June 30, 2008 June 30, 2001 June 30, 2001 Sept 30, 2001 Dec. 31, 2009 June 30, 2007 June 30, 2007 June 30, 2010
9.7.4
During the current year, these mutual funds became associated undertakings due to increase in ownership of the bank, from 27% to 54%, in NBP Fullerton Asset Management Limited (formerly National Fullerton Asset Management Limited).
2010 2009 ---- Rupees in '000 -----
Note 9.8 Investment in joint ventures United National Bank Limited (UNBL) NBP Fullerton Asset Management Limited (NAFA) (Formerly National Fullerton Asset Management Limited) 9.8.1 9.9.1
2,574,163 2,574,163
2,317,250 95,012 2,412,262
9.8.1
Under a joint venture agreement, the bank holds 13.5 million ordinary shares (45%) and United Bank Limited (UBL) holds 16.5 million ordinary shares (55%) in UNBL. In addition to ordinary shares, four preference shares categories as "A", "B", "C" and "D" have been issued and allotted. The "B" and "D" category shares are held by the bank and category "A" and "C" are held by UBL. Dividends payable on "A" and "B" shares are related to the ability of the venture to utilize tax losses that have been surrendered to it on transfer of business from the bank or UBL as appropriate. Dividends payable on "C" and "D" shares are related to loans transferred to the venture by the bank or UBL that have been written-off or provided for at the point of transfer and the ability of the venture to realize in excess of such loan value. Investments of the Group in associated companies, First Credit and Investment Bank Limited (FCIBL), First National Bank Modaraba (FNBM), NAFA funds and Joint Venture company, United National Bank Limited have been accounted for under equity method of accounting as at December 31, 2010 in accordance with the treatment specified in International Accounting Standard 28 "Investments in Associates" and International Accounting Standard 31 "Interests in Joint Ventures" respectively.
9.8.2
161

9.8.3 Movement of share of net assets held in associates and joint venture
O p en in g B alan ce A d dition D ispo sa l the ye ar D iv id en d pa id 2 01 0 S ha re of E xcha nge S u rp lus / S urp lu s / p ro fit / tran sa la tion (de ficit) o n (d e ficit) on (los s) fo r rese rve - ne t re va lu a tio n re va lu a tio n of of tax of p ro pe rties se cu rities C los in g B alan ce
... ............ . R u pe es in '00 0 .. ... Joint Venture United National Bank Limited NBP Fullerton Asset Management Limited [(Formerly National Fullerton Asset Management Limited) three months share of profit before acqusition by the bank note 9.9.1] Associate s First Credit and Investment Bank Limited First National Bank Modaraba NAFA Income Fund Riba Free NAFA Fund Income Opportunity NAFA Fund (Formerly NAFA Cash Fund) NAFA Multi Asset Fund Stock NAFA Fund Islamic NAFA Aggressive Income Fund (Formerly NAFA Islamic Income Fund) NAFA Islamic Multi Asset Fund Governtment NAFA Securities Liquid Fund NAFA Savings Plus Fund
2,31 7,24 9
(10 ,68 5)
(59 ,40 7)
3 28 ,1 0 6
(1 ,10 0 )
2,57 4,16 3
2,31 7,25 0 2 59 ,1 9 493 ,6 51 3 52 ,8 4 5 O pe ning B a la nce
(6 ,29 1 ) (16 ,97 6)
(59 ,40 7)
3 28 ,1 0 6 -
(1 ,10 0 )
(6 ,291 ) 2,56 7,87 3 24 3,03 996 ,3 94 21 ,4 32 51 ,7 52 36 ,6 91 46 ,7 55 57 ,0 22 59 ,6 71
6 1,87 0 5 0,10 0 3 5,92 0 4 2,12 4 5 7,55 4 5 2,82 6
(40 ,14 4) -
(7 ,0 91 ) (78 9 ) (1 ,6 88 ) (6 ,8 72 ) (8 ,9 96 )
(16 ,15 5) 9,83 4 (2 68 ) 1,65 2 3,46 4 7,62 9 6,34 0 26 ,8 00
(2 6 ) (1 ,90 4 ) (1 ,31 0 ) (10 ,95 9)
7 3,22 9 3 0,86 1 3 1,07 2 43 5,55 6 A dd itio n
(9 ,1 63 ) (2 ,3 27 ) (2 ,4 03 ) (3 9 ,3 29 ) D iv ide nd p aid
23 ,0 30 2,40 0 2,18 0 66 ,9 06
(8 ,74 6 ) (22 ,94 5)
78 ,3 50 30 ,9 34 30 ,8 49 75 2,88 9 C losin g
(40 ,14 4) D isp os al B a la nce
2 00 9 S h are o f E xcha nge S urp lu s S u rp lus pro fit / T ran sa la tion (D e fic it) o n (D e ficit) on (lo ss ) fo r R e se rv e - n et re va lu a tio n R evalua tio n o f th e ye ar o f Ta x o f prop e rtie s S ecuritie s
... ............ . R u pe es in '00 0 .. ... Joint Ventures United National Bank Limited NBP Fullerton Asset Management Limited (Formerly National Fullerton Asset Management Limited) Associate s First Credit and Investment Bank Limited First National Bank Modaraba NAFA Income Fund NAFA Riba Free Fund NAFA Income Opportunity Fund (Formerly NAFA Cash Fund) NAFA Multi Asset Fund Stock NAFA Fund NAFA Islamic Aggressive Income Fund (Formerly NAFA Islamic Income Fund) NAFA Islamic Multi Asset Fund Governtment NAFA Securities Liquid Fund NAFA Savings Plus Fund NAFA Savings Plus Fund 2,34 8,41 1 1 02 ,9 9 9 2 ,4 51 ,4 1 0 25 5,10 68 2,43 2 (2 6 ,0 48 ) (3 3 ,7 28 ) 27 5,48 1 2 75 ,4 8 1 (2 46 ,86 7) 2,31 7,24 9 95 ,0 12 2 ,4 12 ,2 6 1 2 59 ,1 9 493 ,6 51 -
(26 ,04 8) -
(7 ,98 7 ) (4 1 ,7 15 ) 4 ,0 88 1 ,1 50 -
(2 46 ,86 7) -
1 0,06 9 -
3 37 ,5 3 8
5,23 8
10 ,0 69
35 2,84 5
162
163
9.9.1.3 Non-controlling interest
Note
Percentage holding
2010 2009 ----- Rupees in '000 -----
9.9
Investments in subsidiaries
National Agriculture Limited measured by reference to the fair value of the non-controlling interest and amounted to Rs. 458.045 million (2009:2,000 9.9.2 Cast-N-Link ProductsNil). This fair value has been estimated by determining market values of identifiable net assets of the subsidiary. 1,245 Limited 76.51 1,245 1,245 Less: Provision for diminutionarising on of investments 9.9.1.4 Goodwill in value acquisition 9.9.1
Consideration transferred Add: Fair in 2010 Business Combinationvalue of previously held equity interest Add: Non-controlling interest at fair value Subsidiary acquired (in Principal 9.9.1.1 2010) activity interest acquired Less: Fair value of identifiable net assets acquired Goodwill arising on acquisition
The non-controlling interest (46% ownership interest in the subsidiary) recognized at the acquisition date was
3,245
268,853 268,854 458,045 Consideratio 995,752 n transferre d Rupees in '000 (340,606) 655,146
Note (1,245) Rupee in '000 (3,245)
Date of acquisitio n
Proportion of voting equity 11.3
9.9.1.5
NBP Fullerton Asset Management Assets management March 30, 2010 27% which None (formerly National Fullerton Limitedof the goodwill arising on the acquisitioninvestment to be deductible for tax purpose. the and is expected increased Asset Management Limited) advisory services bank's holding to Net cash outflow on acquisition of the subsidiary 54%
268,853
The subsidiary was acquired with purpose of expending the banks activities in the business of asset management and Consideration paid in cash 268,853 investment advisory services.
Less: Cash and cash equivalent of the subsidiary at the date of acquisition (55,864) 212,989 Before acquiring additional 27% controlling ownership in the subsidiary, the bank had classified its previous 27% Winding up ownership Agriculture Limitedjoint venture which had been acquired at par value and consequently no goodwill had arisen of National as investment in During the year the bank opted for the easy exit scheme introduced by the Securities and Exchange Commission of Pakistan (SECP) for the winding up of the National Agriculture Limited. After completion of the legal formalities name of the National 9.9.1.2 Assets acquired and liabilities recognised at the date of acquisition Agriculture Limited has been striked off by the Registrar of the Companies. Accordinlgy the bank has derecognised its investment in National Agriculture Limited and related gain alongwith reversal of provision has been accounted for in the profit and loss Carrying value Fair value account.
9.9.2
on the previous acquisitions.
----- Rupees in '000 -----
Current assets Cash and bank balances Receivable from funds Particulars of provision for diminution in value of investments Investment at fair value through profit and loss Advances and other receivable Opening balance Advance income tax Current maturity of long term loans Charge for the year Current portion of long term deposits and deferred cost Reversals Non Transfer from advances current assets Amount written off Property and equipments Closing Balance Intangible
9.10.1 Particulars of provision loans Long term in respect of type and segment Note
2010 2009 55,864 55,864 ----- Rupees in '000 -----
9.10
33,688 61,870 17,455 2,187,187 91,959 3,986 3,280,886 1,624 (375,937) 266,446 2,904,949
1,630,000 (6,121) 6,716,015 119,214
33,688 61,870 17,455 1,542,273 91,959 3,986 872,241 1,624 (220,959) 266,446 651,282
(6,368) 2,187,187 131,135
Long securities Available-for-sale term deposits, prepayments and deferred cost Ordinary shares of listed companies and mutual funds Total assets carried forward Ordinary shares of unlisted companies Debentures, Bonds, Participation Term CertificatesTotal Term Finance Certificates and assets brought forward Preference shares
Held-to-maturity securities Trade and other payables Debentures, Bonds, Participation Term CertificatesCurrent maturity ofCertificates and Term Finance liabilities against assets subject
3,591 49,205 12,232 184,242 2,964,742 450,688 99,768

2,246,593 450,688 80,000
4,130 49,205 12,232 196,702 927,755 463,148 115,514

130,610 463,148 30,000
Current liabilities
(21,075)
831,427
(21,075)
577,823
to finance lease
Investment in associates taxation Provision for Investment in subsidiaries Non current liabilities 9.11 9.7 9.9
(8,763)
492,240 (60,307)
(8,763)
402,240 (60,307)
(90,145)
1,245 6,716,015
(90,145)
3,245 2,187,187
Deferred liabilities Unrealized gain on revaluation of Deferred income on sale and lease back investments classified as Held-for-trading Liabilities against assets subject to finance lease
Ordinary shares of listed companies Federal Government securities
(19,747) (231) (12,419) 6,385 (32,397)

345 6,730 328,146
(19,747) (231) (12,419) 430 (32,397)

1,925 2,355 340,606
164
165
9 2 T h e include Rs. 86,871 million (2009: s ha re s o f P which have te rn placed l A irline s C o rp o ra tio n, P detailed 10.3 .1 Advancesin ve stm e nt s ha re s inc lu de Rs.s71,174 million) akis tan Inbeen a tion a under non-performing status as ak is ta n b N a tio na l S hipp in g C o rpo ra tio n an d P ak isC onm E a ny Lim ite d , th at h av e b ee n fro ze n by th e G o ve rn m e nt of P a kistan (G oP ) fo r s a le in the e qu ity m a rk e t d ue to th eir ta elow:- p ng in ee rin g p ro p os ed p riva tiz atio n . 2010 9 .1 3 D e taile d in fo rm a tio n rela ting to inv es tm en ts in sh a re s o f listed an dProvision Required an ie s , P re fe ren c e Provision, Held tu al F un ds , G ov e rn m e n t u nlis te d co m p S ha res M u Classified Advances S ec urities , nB o re ss, , T e rm F in an ce C e rtifica te s, S uk uk s e tc . Overseas D e be tu nd inc luding quOverseas av aila ble -fo r-sa le s ec urities is give n in A n ne xu re -I to th e ality of Domestic Overseas Total Domestic Total Domestic Total co ns olidn t d fin a nc ia ---------------------------------------------------------------------- Rupees in '000 ---------------------------------------- -----------------------------l state m e ate s. Category of Classification
10 . A D V A N C E S - n et N o te
296,281 339,350 2,520,172 3,155,803 399,848 5,381,490 9,984,251 71,105,76 4 86,871,35 3 937,870 2,383,650 52,066,70 6 55,388,22 6 74,070 169,675 1,846,220 2,089,965 1,011,940 2,553,325 53,912,92 6 57,478,19 1 937,870 2,383,650 52,066,70 6 55,388,22 6 Other Assets Especially Mentioned 399,848 L o aSubstandarcred its, ru n n ing fin an ce s, ns , ca sh 5,085,209 e tc .dIn Doubtful 9,644,901 P a kista Ou Lossts id en 68,585,59 P a kista n 2 83,715,55 0
2 01 200 0 ----- R u p e e s in 9 '0 00 ----74,070 4 5 7 ,7 2 4 ,5 5 169,675 9 5 0,02 5 ,5 2 1,846,220 5 2 7 ,7 5 0 ,0 8 0 2,089,965 1,011,940 42,553,325 3 6 8 ,8 60 ,5 2 3 9 ,0 5 0 53,912,92,97 5 07 6 9 ,9 1 1 ,5 1 57,478,19 1 1
N et in ve stm e nt in fin a n ce lea se In P a kista n O u ts id e P a kista n

Category of Classification
2009
1 0.2
4 57 ,2 6 0
3 65 ,2 1 0
Classified Advances Provision Required Provision Held 0 0 Domestic Overseas Total Domestic Overseas Total Domestic Overseas 6 Total ,2 1 4 57 ,2 3 65 ---------------------------------------------------------------------------------- Rupees in '000 ----------------------------- ----------------------------------------
B ills d isc ou nted an d p u rch as ed (e xc lu ding G o v ern m e nt trea su ry Other b le in b ills ) a yaAssets Especially P 748,091 748,091 PMentionedu ts id e a kista n o ya b le Substandar 6,868,363 2,639 6,871,002 Doubtful 6,595,335 648,234 7,243,569 dP a kista n
Loss 55,013,57 1,297,794 6 1,948,667 8 9,225,36 M a rg in F in a n c in g / C o ntin ou s F u nd in g S y ste m 7 F in ann ce s cing A dv a 56,311,37 71,174,03 2 4
1,497,832 2,870,299 48,433,40 52,801,53 4 5
660 324,117 623,842 948,619
1,498,492 3,194,416 49,057,24 53,750,15 6 4
1,497,832 2,870,299 48,433,40 52,801,53 4 5
1 9,42 7 ,3 2 5 2,49660 1 1 5 ,7 2 1,92 3 ,0 3 3 324,117 7 623,842

948,619
10.4
g ro ss P ro v is io n for no n-pe rform in g L e s s: a d v an ce s - n e t of A dv a n ce s 1 0 .1 P a rtic ulars o f a d v an ce s g ros s 1 0 .1 . 1
1 0.1 1 0.4
p ro Particulars of provision against non-performing vision advances:

Specific Note
54 0,13 0,3 7 8 6 1,24 3 ,6 2 3 47 8,88 6,7 5 5
3 11 ,0 82 ,9 9 1,498,492 20 ,7 6 5 ,82 2 3,194,416 3 49,057,24 5 6 3,750,15 6 0,96 4
11 ,6 82 ,8 3
3 5 3 1 ,1 03 ,5 0 7 5 5 ,7 6 5 ,06 8 47 5,3 3 8 ,4 3 9
Opening balance adjustments Exchange 1 0 for Charge.1 . the S h ort te rm (fo r u p to o ne ye ar) term (fo r o ve r on e Lo ng year2 Reversal during the ye ar) year Transfer to investments Amounts written off Other inv e s tm 1 0 .2 N e t balance e n t in fina nc e Closing adjustments 10.6
In lo ca l c urre nc y In fo re ig n cu rren cies
2010 2009 Genera Total Specific Genera Total 47 7,60 9,1 4 47 2,5 2 3 ,1 8 l l ------------------------------------------ Rupees in '000 -----------------------------------------2,014,914 (451 ) 1,750,969 1,750,969 3,765,432 55,765,06 8 2,230 11,683,745 (4,675,770 )7,007,975 (1,630,000 ) (27,890 ) 126,240 61,243,62 3 42,770,74 9 8,975 15,127,70 6 (3,857,538 ) 11,270,168 (299,738 ) 53,750,15 4
53,750,15 4 2,681 9,932,776 (4,675,770 ) 5,257,006 53 1,1 0 3 ,50 7 (1,630,000 ) (27,890 ) 126,240 57,478,19
4 6 2,52 1 ,2 3 4 54 0,13 0,3 7

2,111,217 8 25,092 35 7,80 5,4 5 8,940 3 (130,335 2 18 2,32 4,9 5 )0,13 0,3 7 54 (121,395 8 ) 2,014,914
44,881,96 7 6 34,067 36 6,5 7 0 15,136,64,8 3 8 16 6 4,5 3 2 ,6 6 (3,987,873 9 ) 11,148,773 (299,738 ) 55,765,06 8
1 5 8 ,5 8 0 ,32 6 53 1,1 0 3 ,5 0
le as e
N ot la te r
10.5 Particulars of provision against non-performing tha n advances:
L a te r th a n one a ss le n d th an five y e a rs
21 01 0 O ve r five
N ot la te r th a n o nye a r e
L ater tha n on e an d le ss th an
2 00 9 O ve r five
T o2010 ta l five y ea rs y ea y ea rs T ota l 2009rs Specific Genera Total Specific Genera Total -------------------------------------------------------------- R u p e e s in '00 0 -------------------------------------------------------------27 7,1 4 751 ,7 7 1 6 4 ,1 5 353 ,2 8
l ------------------------------------------ Rupees in '000 -----------------------------------------55,388,22 3,371,012 58,759,23 52,801,53 4 41 ,3 0 2 05 ,0 3 118 ,8 8 62,089,965 82,484,385 5 948,619 394,420 0 05 ,0 5 85 4 ,5 7 5 1 4 1 ,2 7 57,478,19 3,765,432 61,243,62 53,750,15 7 46 ,3 5 5 1 3 23 9 ,6 1 4 16 0,16 5 5 l 1,587,413 427,501 2,014,914 54,388,94 3 23 ,9 2 81,376,120 395 ,8 4 55,765,068
o ne ar ye
0 32 8,9 1 27 7 ,4 4 1 48 ,7 7 19 7 0 7 1 0 1 10.5.1 In accordance ch a rg e s fo r fu tu re p 10 dated October 20, 60 ,6 0 F in a n c ia l with BSD Circular No. e riod s2 8 ,48 2009 issued by the -State Bank8of ,09 9 Pakistan, the 5,43 has availed the benefit of FSV against the non-performing 4 Bank 9,1 2 54 ,5 6 advances. year, total FSV benefit availed by8the bank resulted in increase in after tax profit of Rs. 533 million. Accordingly, as of December 31, 2010, the accumulated increase in During the 1 30 0,4 2 19 6 ,8 3 5 47 ,2 6 57 26 ,1 7 14 155 1,0336 5,21 0 -
In local currency L e a s e ren ta ls In foreign ree sid a b le R ce iv currencies u a l
vain im u m le a s e p a ym e n ts M lu e
to 2 0 .6 8 % ) p e r a n n u m .
profit tax of Rs. 2,659 million (2009: Rs. 2,126 million) shall not be available for payment of cash or stock dividend as requir ed by aforementioned SBP directives. During the year, after 9 0 5 5 SBP the vide its BSD Circular No. 2 dated June 03, 2010 has 1 amended the Prudential Regulations in respect of provisioning against n on-performing advances, the impact of which is in the current immaterial year.h e le as es ex e c uted a re fo r a te rm o f 3 to 5 y ea rs . S e cu rity d e p o sit is g e ne ra lly ob ta in ed u pto 10 % o f the c os t o f le a se d a ss ets a t th e tim e o f d is bu rs em e n t. T 10.5.2 General G ro up against consumer loans represents provision maintained at an amount ranging from 1.5% to 3% of the fully secured performing portfolio as required by the T hq uprovision le ss e e s to in su re the le a s ed a s se ts in fav o u r of th e G ro up a n d m a in ta in ed fin a n c ia l ra tio s , a s req uire d u nd er th e S E C P P ru de ntia l re e ires th e Prudential issued by the SBP. In addition, management in the current year reviewed the recoverability of loans in certain sectors with particular reference to history of default Regulations N o economic F and R e g u la tion s gfo rin an ce Basedpon this .review, in addition h a rg e is cprovision o n d e la ye d ren ta ls with the prudential regulations, ath e se ran ge s frohas1been made 2 0 .63 % current n -B a n kin conditions. C o m a n ies A d ditio n a l su rc to specific ha rg ed made in accordance . T he fix ed retu rn im p lic it in general provision m 4.12 % to for risk (2 0 0 possible 9 : 1 3 % of losses in respect of such sectors aggregating to Rs. 1,716 million.
166

Note 10.6 Particulars of write offs: 10.6.1 Against provisions Directly charged to profit and loss account 10.4 27,890 27,890 25,034 2,856 27,890 299,738 299,738 297,597 2,141 299,738 2010 2009 ----- Rupees in '000 -----
10.6.2
Write offs of Rs. 500,000 and above Write offs of below Rs. 500,000
10.7
10.7
Details of loan write off 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 other financial relief of Rs.500,000 or above allowed to a person(s) during the year ended December 31, 2010 is given in Annexure-II. 2010 2009 ----- Rupees in '000 -----
Note 10.8 Particulars of loans and advances to directors, associated companies, etc: Debts due by directors, executives or officers & staff of the bank or any of them either severally or jointly with any other persons Balance at beginning of the year Loans granted during the year Repayments Balance at end of the year Debts due by companies or firms in which the directors of the bank are interested as directors, partners or in the case of private companies as members Balance at beginning of the year Loans granted during the year Repayments / other adjustments Balance at end of the year Debts due by controlled firms, managed modarabas and other related parties Balance at beginning of the year Loans granted during the year Repayments / other adjustments Balance at end of the year
19,492,373 3,521,317 (3,633,937) 19,379,753
17,148,248 6,571,649 (4,227,524) 19,492,373
12,423,114 9,969,859 (4,913,723) 13,317,746
9,758,505 5,303,572 (2,638,963) 12,423,114
1,863,346 6,477 (108,617) 1,761,206
1,269,498 18,444 1,287,942
11.
OPERATING FIXED ASSETS Capital work-in-progress Property and equipment Intangible assets 11.1 Capital work-in-progress Civil works Equipment Advances to suppliers and contractors License and implementation fee for core banking software 1,151,590 101 123,917 708,966 1,984,574 869,357 3,088 98,787 505,893 1,477,125 11.1 11.2 11.3 1,984,574 25,054,803 581,320 27,620,697 1,477,125 23,694,432 29,313 25,200,870
167

11 .2 P ro p e rty a n d e q u ip m e n t C o s t/re v a lu e d a m o u n t At J a n u a ry 1, 2010 R e v a lu a tio n A d d itio n s / At (d e le tio n s ) / D e c e m b e r (A d ju s tm e n ts ) 3 1 , 2 0 1 0 A c c u m u la te d d e p re c ia tio n C h a rg e fo r At th e y e a r/ At J a n u a ry (d e le tio n s ) D e c e m b e r 1, 2010 31, 2010 B ook V a lu e a t D ecem ber 31, 2010
R a te o f d e p re c ia tio n
----------------------------------------------------------------------- R u p e e s in '0 0 0 ---------------------------------------- ------------------------------O w ned Land - fre e h o ld - le a s e h o ld B u ild in g s o n la n d : - fre e h o ld 2 ,4 4 2 ,3 8 3 1 7 8 ,4 6 8 2 4 2 ,4 1 6 2 ,6 2 0 ,8 5 1 1 2 4 ,3 8 2 1 2 0 ,3 0 5 2 4 4 ,6 8 7 2 ,3 7 6 ,1 6 4 5 % o n b o o k v a lu e 9 ,5 1 6 ,0 4 6 7 ,2 9 7 ,1 3 4 6 4 ,7 3 8 9 ,5 1 6 ,0 4 6 7 ,3 6 1 ,8 7 2 9 ,5 1 6 ,0 4 6 7 ,3 6 1 ,8 7 2 N il N il
- le a s e h o ld
2 ,1 8 0 ,2 8 5
2 ,4 2 2 ,7 0 1
1 0 0 ,3 3 8
11 0 ,4 2 2
2 1 0 ,7 6 0
2 ,2 1 1 ,9 4 1 5 % o n b o o k v a lu e
F u rn itu re a n d fix tu re s ,6 9 3 ,9 6 6 1 *
3 ,0 6 4 8 0 ,8 0 8
5 3 2 ,9 4 5 (7 ,1 6 2 )
2 ,3 0 3 ,6 2 1
1 ,0 2 8 ,2 4 8
1 7 3 ,7 4 7 1 ,2 1 2 ,0 3 1 (4 ,1 8 9 ) 1 4 ,2 2 5
1 ,0 9 1 ,5 9 0 1 0 % to 3 0 % o n
b v a lu e a n d 2 0 % ook n sotra ig h t-lin e o n n fuw is h in g lim it e rn toe x e c u tiv e s . & re fu rb is h m e n t o f b ra n c h e s
C o m p u te r & p e rip h e ra l e q u ip m e n ts 1 ,8 2 1 ,8 4 3 * E le c tric a l & o ffic e e q u ip m e n ts 2 ,3 0 3 ,0 9 6 * V e h ic le s 7 9 8 ,8 1 8 * 2 8 ,0 5 3 ,5 7 1 * A s s e ts h e ld u n d e r fin a n c e le a s e V e h ic le s 2 0 4 ,0 7 4
1 ,7 3 5 3 0 ,7 0 5 1 ,2 1 2 1 7 ,9 3 3 1 ,0 7 7 2 6 ,6 9 7 7 ,0 8 8 1 5 6 ,1 4 3
2 9 7 ,6 0 4 (1 ,1 8 1 ) 3 4 8 ,4 6 0 (8 0 ,3 3 9 ) 2 3 3 ,4 6 3 (6 5 ,6 9 9 )
2 ,1 5 0 ,7 0 6
1 ,4 3 4 ,7 3 3
2 6 1 ,4 3 5 1 ,7 1 7 ,6 2 2 (2 ,1 9 8 ) 2 3 ,6 5 2 2 2 9 ,6 5 0 1 ,6 1 1 ,0 7 4 (7 6 ,9 2 7 ) 3 ,5 5 6 11 8 ,5 7 7 (4 9 ,3 6 3 ) 8 ,8 1 1 5 2 6 ,8 0 4
4 3 3 ,0 8 4
33% on cost
2 ,5 9 0 ,3 6 2
1 ,4 5 4 ,7 9 5
9 7 9 ,2 8 8 2 0 % o n b o o k v a lu e
9 9 4 ,3 5 6
4 4 8 ,7 7 9
4 6 7 ,5 5 2
20% on cost
1 ,8 9 8 ,0 9 4 (1 5 4 ,3 8 1 ) -
2 9 ,9 6 0 ,5 1 5
4 ,5 9 1 ,2 7 5 1 ,0 1 4 ,1 3 6 5 ,5 2 2 ,9 7 8 (1 3 2 ,6 7 7 ) 5 0 ,2 4 4
2 4 ,4 3 7 ,5 3 7
2 4 ,7 5 5 4 ,4 5 0
1 0 1 ,9 7 5 (2 1 ,9 7 7 ) 6 ,1 1 9
3 0 8 ,8 2 7
11 6 ,1 1 6 4 ,1 4 0 6 ,6 0 5 158
2 2 ,4 7 3 (2 6 ,4 3 2 ) 2 ,9 1 6 1 ,4 3 2
11 6 ,2 9 7
1 9 2 ,5 3 0
20% on cost
O ffic e e q u ip m e n t A s s e ts h e ld u n d e r Ija ra h M a c h in e ry
7 ,3 5 9
1 7 ,9 2 8
11 ,1 11
6 ,8 1 7
2 0 % o n b o o k v a lu e
2 3 9 ,9 7 7
3 5 0 ,0 0 0 (9 5 ,3 5 8 ) 2 ,3 5 6 ,1 8 8 (2 7 1 ,7 1 6 ) -
4 9 4 ,6 1 9
9 6 ,5 5 3
6 5 ,9 6 9 (8 5 ,8 2 2 )
7 6 ,7 0 0
4 1 7 ,9 1 9 2 5 % to 3 3 % o n c o s t
2010
2 8 ,5 0 4 ,9 8 1
7 ,0 8 8 2 9 ,2 0 5
3 0 ,7 8 1 ,8 8 9
4 ,8 1 0 ,5 4 9 1 ,1 0 5 ,4 9 4 5 ,7 2 7 ,0 8 6 4 ,2 9 8 (2 4 3 ,4 9 9 )
2 5 ,0 5 4 ,8 0 3
* A d d itio n o f a s s e ts o n a c c o u n t o f a c q u is itio n o f N B P F u lle rto n A s s e t M a n a g e m e n t L im ite d (fo rm e rly k n o w n a s N a tio n a l F u lle rto n A s s e t M a n a g e m e n t L im ite d ) N o te
168

C o s t/re v a lu e d A c c u m u la te d am ount d e p re cC htiorg e ia a n fo r e At R e v a lu a tio n A d d itio n s / At At th At /* y le tio Januar (d e le tio n s ) D e c e m b e J a n u a r (d e a r/ n s D e c e m b e y1 , tra n tm r3 1 , y, ) r3 1 , (a d ju s fe r e/ n ts ) / 1 2009 (A d ju s tm e n ts ) 2009 0u9 2009 -----------------------------------------------------------------------2R 0 p e e s in '0 0 0 -----------------------------------------------------------------------
O wne d Land fre e h o ld le a s e h o ld B u ild in g s o n la n d : fre e h o ld
B ook V a lu e a t D ecem be r3 1 , 2009
R a te d eo fre c ia tio p n
9 ,5 1 6 ,0 4 6 7 ,2 0 0 ,8 7 7
1 2 2 ,9 2 3 9 ,8 4 5 (2 ) (6 1 ,6 3 7 )
3 ,1 7 9
9 ,5 1 6 ,0 4 6 7 ,2 9 7 ,1 3 4
9 ,5 1 6 ,0 4 6 7 ,2 9 7 ,1 3 4
N il N il
2 ,4 4 6 ,9 0 9
5 7 ,1 1 1
2 ,4 4 2 ,3 8 3
1 2 4 ,3 8 2
1 2 4 ,3 8 2
2 ,3 1 8 ,0 0 5 % o n b o o k 1 v a lu e
le a s e h o ld
1 ,9 2 9 ,1 2 9
F u rn itu re a n d fix tu re s
1 ,4 7 6 ,6 6 2
9 0 ,1 9 (15 2 ,9 2 3 2 ) (1 ,3 2 0 ) -
2 8 5 ,2 0 4
2 ,1 8 0 ,2 8 5
1 0 0 ,3 3 8
1 0 0 ,3 3 8
2 ,0 7 9 ,9 4 5 % o n b o o k 7 v a lu e
2 2 1 ,1 2 0 (3 ,8 1 6 )
1 ,6 9 3 ,9 6 6
9 2 5 ,6 7 5
1 0 5 ,0 1 0 (2 ,4 3 7 )
1 ,0 2 8 ,2 4 8
C o m p u te r & p eeripuhip m e n t q e ra l s E le c tric a l & o ffic e ip m e n t equ s V e h ic le s
6 6 5 ,7 1 1 0 % to 3 0 % o n 8 b v a lu e a n d 2 0 % ook s tra ig h t-lin e o n on nfuw is h in g lim it e rn e x e cto tiv e s . & u o re fu rb is fh m e n t b ra n c h e s 3 8 7 ,1 1 0 3 3 .3 3 % o n cost
1 ,6 2 1 ,3 1 0 1 ,9 9 1 ,4 5 3 6 6 7 ,0 8 6
2 0 0 ,5 3 3 3 11 ,6 5 8 (1 5 ) 1 5 8 ,4 4 1 6 ,7 0 9 (2 ) 1 ,2 3 7 ,2 4 6 (3 0 ,5 4 0 )
1 ,8 2 1 ,8 4 3 2 ,3 0 3 ,0 9 6 7 9 8 ,8 1 8
1 ,2 7 0 ,8 6 9 1 ,2 6 5 ,5 3 7 3 5 8 ,1 5 3
1 6 3 ,8 6 4 1 8 9 ,1 2 0 (1 4 ) 15 2 11 4 ,1 3 (2 3 ,5 1 1 7 ) 7 9 6 ,8 5 1 5 ,9 6 2 (2 ) 15 2
1 ,4 3 4 ,7 3 3 1 ,4 5 4 ,7 9 5 4 4 8 ,7 7 9
8 4 8 ,3 0 2 0 % o n b o o k 1 v a lu e 3 5 0 ,0 3 9 20 % on co st
2 6 ,8 4 9 ,4 7 2 A s s e ts h e ld u nfine rn c e da le a s e V e h ic le s O ffic e e q u ip m e n t A s s e ts h e ld uIja rarh nde M a c h in e ry
9 0 ,1 9 (9 2 ,8 0 2 5 )
2 8 ,0 5 3 ,5 7 1
3 ,8 2 0 ,2 3 4
4 ,5 9 1 ,2 7 5
2 3 ,4 6 2 ,2 9 6
1 6 9 ,3 7 7 2 ,4 6 9
3 8 ,3 7 9 ,6 8 2 ) (3 4 ,8 9 0
2 0 4 ,0 7 4 7 ,3 5 9
1 0 2 ,2 1 2 1 ,6 4 0
1 6 ,0 9 4 ,1 9 0 ) (2 4 ,9 6 5
11 6 ,1 1 6 6 ,6 0 5
8 7 ,9 5 8
20 % on co st
75 4 20% on book v a lu e
1 7 4 ,0 1 6 2 7 ,1 9 5 ,3 3 4
6 5 ,9 6 1
2 3 9 ,9 7 7
3 8 ,6 1 8 3 ,9 6 2 ,7 0 4
5 7 ,9 3 5 8 7 5 ,8 4 5 8 ,1 5 2 (2 )
9 6 ,5 5 3 4 ,8 1 0 ,5 4 9
1 4 3 ,4 2 2 5 % to 3 3 % o n 4 cost 2 3 ,6 9 4 ,4 3 2
200 9
9 0 ,1 9 (9 2 ,8 0 2 5 )
1 ,3 4 6 ,4 7 2 8 ,5 0 4 ,9 8 6 (3 4 ,2 2 2 1 ) 152
169

Intangible assets
A ccum ulated am ortization as A m ortization at January 1, for the year 2010 R ate of Accum ulated Im pairm ent B ook value am ortisation am ortization and charge for as at im pairm ent as at the year D ecem ber D ecem ber 31, (N ote 11.6) 31, 2010 2010
11.3
C ost as at January 1, 2010
A dditions
C ost as at D ecem ber 31, 2010
----------------------------------------------- R upees in '000 ----------------------------------------------C om puter softw are W ebsite R oom and M em b ership card G oodw ill O thers 41,997 1,041 12,591 2,601 58,230 2,374 655,146 657,520 44,371 1,041 12,591 655,146 2,601 715,750 25,342 1,041 2,534 28,917 12,853 67 12,920 92,593 92,593 38,195 1,041 92,593 2,601 134,430 6,176 33.33% on cost 33.33% on cost 12,591 562,553 20% on cost 581,320
C ost as at January 1, 2009
A dditions
C ost as at D ecem ber 31, 2009
A ccum ulated am ortization as A m ortization at January 1, for the year 2009
R ate of Accum ulated B ook value am ortisation Im pairm ent am ortization and as at charge for im pairm ent as at D ecem ber the year D ecem ber 31, 31, 2009 2009
----------------------------------------------- R upees in '000 ----------------------------------------------C om puter softw are W ebsite R oom and M em bership card G oodw ill O thers 26,948 1,041 12,591 2,601 43,181 15,049 15,049 41,997 1,041 12,591 2,601 58,230 19,328 1,041 2,534 22,903 6,014 6,014 25,342 1,041 2,534 28,917 16,655 33.33% on cost 33.33% on cost 12,591 67 20% on cost 29,313
11.4
R evaluation of properties D uring the year revaluation of property and equipm ent and construction of Baku branch was carried. The revaluation was carried out by external auditors as allowed under local laws. This has resulted in surplus on revaluation of R s. 7.088 m illion. Had there been no revaluation, am ount of revalued assets w ould have been R s. 2.492 m illion. the carrying
11.5
The Islam ic Banking Branches of the bank have entered in to Ijarah transactions w ith custom ers during the year. T he significant Ijarah transactions have been entered in respect of heavy duty earth m oving m achinery. T he rate of profit is 6 m onths KIBO R + 2.00% to 2.75% and 3 m onths KIBO R + 1.3% to 2.5% (2009: 6 m onths KIBO R + 1.5% to 2.75% and 3 m onths KIBO R + 2.5% to 5% ). The Ijarah paym ents receivable from custom ers for each of the follow ing periods under the term s of the respective agreem ents are given below: 2010 2009 ----- Rupees in '000 ----N ot later than one year Later than one year but not later than five years 145,098 489,385 80,534 72,552
11.6
The G roup perform ed its annual im pairm ent test as at Decem ber 31,2010. The G roup considered that the current stock m arket conditions had not turned out as the G roup had expected at the tim e of acquisition of controlling interest in NBP Fullerton Asset M anagem ent (form erly N ational Fullerton Asset M anagem ent). This scenario consequently im pacted projected future earnings of the subsidiary as it ear ns m anagem ent fee from the funds which m ainly depends on perform ance of the stock m arket. Considering the situation as an im pairm e nt indicator, m anagem ent determ ined recoverable am ount of NBP Fullerton Asset M anagem ent (form erly N ational Fullerton Asset M anagem ent), cash-generating unit, based on value in use calculations using cash flow projections covering five year period. As a result of this analysis, m anagem ent has recognized im pairm ent on good will of R s. 92.593 m illion which have been recorded as 'Im pairm ent of goodwill' in the profit and loss account.
170

Details of disposals of property and equipment Details of property and equipment whose original cost or the book value exceeds rupees one million or two hundred fifty thousa nd rupees respectively, whichever is lower are given below: 11.7
Particulars of assets
O riginal Book Sale cost value proceeds . Rupees in '000 1,288 1,288 4,650 3,511 3,291 5,803 3,500 3,899 5,450 1,199 1,107 1,107 188 193 632 1,167 1,094 2,573 525 556 799 4,354 9,536 156 156 205 215 930 1,334 1,251 2,894 700 780 1,089 1,121 111 111 12,300 9,536 11 11
G ain / (loss) 17 22 298 167 157 321 175 224 1,089 322 111 111 7,946 (145) (145)
M ode of Disposal
Particulars of Purchaser
M otor Vehicle M otor Vehicle Lease Vehicle Lease Vehicle Lease Vehicle Lease Vehicle Lease Vehicle Lease Vehicle Lease Vehicle M otor Vehicle M otor Vehicle M otor Vehicle
As per Approved Policy Em ployee of the Bank As per Approved Policy Em ployee of the Bank As per Approved Policy Em ployee of the Bank As per Approved Policy Em ployee of the Bank As per Approved Policy Em ployee of the Bank As per Approved Policy Em ployee of the Bank As per Approved Policy Em ployee of the Bank As per Approved Policy Em ployee of the Bank As per Approved Policy Form er President Insurance claim National Insurance Com pany Ltd. As per Approved Policy Em ployee of the Bank As per Approved Policy Em ployee of the Bank Auction Ijarah M aturity HNR C om pany (Pvt) Ltd. Allied Rental M odarba
Electrical Installation O ffice 79,207 Ijarah Assets Com puter and peripheral equipm ent Com puter and peripheral equipm ent 95,358 224 224
As per BoD Approval Form er Director As per BoD Approval Form er Director
O ther assets (having book value of less than Rs.250,000 and cost of 60,610 less than Rs.1,000,000) Decem ber 31, 2010 Decem ber 31, 2009
12.
6,288 28,217 6,070
30,586 63,185 13,997
24,298 34,968 7,927

Note 2010 2009 ------ Rupees in '000 -----1,586,671 6,189,551 334,051 1,156,724 942,204 116,622 10,325,823 (16,149) (391,165) (1,750,726) (1,213,555) (3,371,595) 6,954,228 553,506 4,720,840 281,966 927,443 116,622 6,600,377 (7,065) (222,293) (2,028,859) (1,276,951) (750) (3,535,918) 3,064,459
271,716 34,222
DEFERRED TAX ASSETS - net Deductible temporary differences on : Provision for diminution in the value of investments Provision against advances Other provision Charge against defined benefits plans Un realized loss on derivatives Provision against off balance sheet obligation Taxable temporary differences on : Excess of accounting book value of leased assets over lease liabilities Difference between accounting book value of fixed assets and tax base Revaluation of securities Revaluation of fixed assets Others Net deferred tax assets
20.1 20.2
171

M ovem en t in tem po rary differen ces du rin g th e yea r
J anuary 1, 2009
1 2. 1
R ec ogniz ed in R e c o g n iz e d in D ecem b er A c quis ition R e c o g n iz e d in P r o fit g n iz c c u P rofit a nd Loss s u r p lu s o n 31, 2009 during the year Raencdo L o sAse d oin n s urplus on t A c coun t r e v a lu a t io n o f a s s e t s revaluation of ass ets
D ec em ber 31, 2010
... . . R upees in '000 . D eferred tax ass ets aris ing in respec t of: P ro vis io n for dim inution in th e value of investm ents 357,446 P ro vis io n agains t adv anc es 4,093,904 O ther provision 376,111 C harge agains t defined benefits plans 666,181 U nrealis ed gain / lo ss on deriv ativ es P ro vis io n agains t off-balance sheet obligations 116,622 5,610,264 L ess : D eferre d tax (liabilities ) aris ing in resp ect of: E xc ess of ac counting boo k v alue of leased ass ets ov er leas e liabilities (5,600) D ifference betw een ac cou nting b ook v alue o f fix ed as sets and tax bas e (169,754 ) R ev aluation of sec urities (895,673 ) R ev aluation of fix ed as sets (1,334,665) O thers (1,007) (2,406,699) N et deferred tax as se ts 3,203,565 990,113 196,060 626,936 (94,1 45) 261,262 553,506 4,720,840 281,966 927,443 116,622 6,600,37 7 1,033,1 65 1,468,711 52,0 85 229 ,281 942 ,204 3,725 ,446 1,586,671 6,189,551 334,05 1 1,156,724 942,20 4 116,622 10,325,82 3
(1,465) (52,5 39) 66,733 25 7 12,986 1,003,099
(7,065)
(6,338) (6,338) (6,338)
(9 ,084) (168,872 ) 63,3 96 7,088 (107,472 )
278,133
(16,149) (39 1,165 ) (1,750 ,726) (1,213,5 55) (3,371 ,595)
(222,293 ) (1,133,186) (2,0 28,859) (9,01 9) (1,2 76,951) (750) (1,142,205) (3,5 35,918) (1,142,205) 3,064,45 9
278,133
3,617 ,974 6,95 4,228 278,133
Note 13. OTHER ASSETS Income / mark-up / interest accrued in local currency Income / mark-up accrued in foreign currencies Advances, deposits, advance rent and other prepayments Advance taxation (payments less provisions) Income tax refund receivable Compensation for delayed refund receivable Receivable from GoP Assets acquired from Corporate and Industrial Restructuring Corporation (CIRC) Branch adjustment account - net Derivatives: Un-realized gain on forward foreign exchange contracts Commission receivable Stationery and stamps on hand Barter trade balances Receivable on account of Government transactions Receivable from Government under VHS scheme Less: provision Receivable from pension fund Prize bonds in hand Receivable from brokers Others Less: provision held against other assets Income / mark-up accrued in local currency / foreign currencies Advances, deposits, advance rent and other prepayments Stationery and stamps on hand Barter trade balances Receivable on account of Government transactions Others 13.6 Other assets (net of provision)
2010 2009 ----- Rupees in '000 ----(Restated) 18,707,775 734,511 2,523,072 1,288,916 16,850,798 1,856,256 5,648 405,657 2,772,582 181,473 3,240,760 436,939 195,399 323,172 418,599 (418,599) 3,522,884 260,403 519,305 3,551,697 57,377,247 14,888,440 870,380 15,129,701 8,490,008 10,805,291 5,648 497,490 2,308,352 183,145 2,755,941 415,733 195,399 323,172 418,599 (418,599) 3,666,344 235,239 119,511 2,115,229 63,005,023
13.1 13.5 13.2
13.3 13.4
34.1.2
327,081 800,000 201,200 195,399 323,172 1,503,670 3,350,522 54,026,725
327,081 800,000 51,200 195,399 323,172 1,393,144 3,089,996 59,915,027
172
173
15.2.1
13.2 13.3 13.4 13.5 13.1 This includes Rs. 800 million (2009: Rs.13,547 million) advance against Pre-IPO placement of Term Finance Certificates.
Mark-up / interest rates and other terms are as follows:
Upon dissolution of CIRC and take over by the bank with effect from September 22, 2006, the customers. As per the terms of the The bank has entered into agreements with SBP for extending export finance to said amount represents receivable from GoP. agreement, the bank has granted SBP the right to recover the outstanding amount from the bank at the date of This represents amount receivable from Government of Pakistan on accountperencashment ofbank has entered into agreements by loans from SBP are at the rate of 8.0% per annum (2009: 7.0% of annum).The various instruments handled the bank for Government of Pakistan as an agentto customers. As per the terms of the agreement, the bank has granted SBP with SBP for extending export finance of SBP. This represents account maintained by the bank with SBP. Export refinance loans from SBP are at the rate of 8% per annum current payments made under the Voluntary Handshake Scheme (VHS), recoverable from Government of Pakistan. Due to uncertainty aboutper recoverability, full amount has been provided for. (2009: 7% its annum). During the year, further appeal effects from Income Tax Appellate 13.90% per annum (2009: 11.25% to 12.65% per annum). were Call borrowings carry interest ranging from 11.00% to Tribunal (ITAT) pertaining to tax years 2003 to 2008 received, which resulted in additional determined refunds of Rs 6,045 million (2009: Rs 10,805 million). The Federal Board of Revenue (FBR) will issue bonds in lieu of these determined refunds.
maturity of finances by directly debiting the current account maintained by the bank with SBP. Export refinance
the right to recover the outstanding amount from the bank at the date of maturity of finances by directly debiting the
Repurchase agreement borrowings carry mark-up at the rate of 11.55% to 14.00% per annum (2009: 9.25% to 2010 2009 12.1% per annum).
13.6
Note ------ Rupees in '000 ----Provisions against other assets "Others" carry interest at the rate of 10% per annum (2009: 10% per annum). Unsecured borrowings Opening balance 3,089,996 2,659,804 Borrowings year Charge for the from State Bank of Pakistan (SBP) under export oriented projects refinance schemes of SBP are secured by 13.6.2 260,526 582,771 bank's Reversalscash and security balances held by SBP. (152,579) Closing balance 13.6.1 3,350,522 3,089,996
Note
15.3
16.
13.6. 1 DEPOSITS AND OTHER ACCOUNTS (2009: Nil) in respect of provision against stationery which has been included in stationery and 13.6. This includes Rs. 150 million 2 printing expenses.
2010 2009 ----- Rupees in '000 ----(Restated) This includes Rs. 800 million (2009: Rs. 800 million) as provision against Pre-IPO of Term Finance Certificate.
Customers 14.
Fixed deposits BILLS PAYABLE Savings deposits Current Accounts - Remunerative Current In Pakistan Accounts - Non-remunerative Outside Pakistan Financial Institutions Remunerative deposits Non-remunerative deposits BORROWINGS
Note
2010 2009 218,701,230 in '000 ----194,851,862 ----- Rupees 266,342,975 196,374,087 68,525,875 75,321,341 194,393,878 169,043,847 7,777,211 10,546,471 747,963,958 635,591,137 229,420 74,698 8,006,631 10,621,169 30,939,064 53,231,032 84,170,096 832,134,054 19,265,569 391,638 19,657,207 688,730,713 48,399,678 43,522,198 91,921,876 727,513,013 44,707,396 120,742 44,828,138 576,126,612
15.
16.1 In Pakistan Particulars 16.1 Outside Pakistan of deposits 15.1 & 15.2 15.1 In local currency In Particulars of borrowings withdeposits to currencies foreign currencies [including respect of foreign branches of Rs. 97,996 million (2009: Rs. 116,561 million)] In local currency In foreign currencies 15.2 17. LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE 15.2 Details of borrowings
19,265,569 143,403,341 391,638 832,134,054 19,657,207
44,707,396 151,386,401 120,742 727,513,013 44,828,138
44,828,138
2010 2009 Financial Principal Minimum Minimum Financial Principal Borrowings from State Bank of Pakistan charges for lease outstanding lease charges for outstanding Under Export refinance scheme 6,213,967 7,028,312 payments future periods payments future periods Long Term Financing under Export Oriented Project (LTF- EOP) Rupees in '000 ---------------------------------------------------1,412,760 2,587,196 -------------------------------------------Under Long-Term Financing Facility (LTFF) 1,465,900 1,436,715 Repurchase agreement borrowings 8,855,758 24,558,891 Not later than one year 66,572 14,957 51,615 24,624 5,611 19,013 17,948,385 35,611,114 Later than one year and not later than five years 81,069 9,271 71,798 27,306 3,690 23,616 Unsecured Over five years 147,641 24,228 123,413 51,930 9,301 42,629 Call borrowings 1,100,948 9,081,987 Overdrawn nostro accounts 32 537,074 64,237 70,800 70,800 The Group Others has entered into lease agreements with various leasing companies for lease of vehicles. Lease rentals are payable in quarterly 1,708,822 installments. Financial charges included in lease rentals are determined on the basis of discount factors applied at the rates ranging from 9,217,024 19,657,207 KIBOR + 0.9% to KIBOR + 4.00% per annum (2009: KIBOR + 0.9% to KIBOR + 4.00% per annum). At the end of lease term, the Group has option to acquire the assets, subject to adjustment of security deposits.
Secured
174
175
S h a re o f th e b a n k h e ld b y its a s s o c ia te s 2010 2010 1 9 .3
18. Note N o te OTHER LIABILITIES Mark-up / w in g s interest payable in ld b ycurrency s o c ia te s F o llo return / h a re s w e re h e local th e a s Mark-up / return / interest payable in foreign currencies Unearned commission and income on bills discounted Accrued expenses
2009 2009
-----m b e r o f s h a re s N u Rupees in '000 ----14,522,712 502,481 11,948,693 564,017 218,041 2,128,112
o f th e b a n k a s o f y e a r e n d :
N A F A M ulti A s set F und
2 2 5 ,0 1 8
94,921
N A FA S tock Advance payments Fund

Unclaimed dividends Derivative : Loss on forward foreign exchange contracts
5 0 6 ,8 3 1 22,035 7 3 1 ,8 4 9 45,761
2,208,380
7,343
33,494
1,253,135 2,260,864 450,061
S U R P L U S O NcrossV A L U A T IO N O F A S S E T S - n e t Loss on R E currency swaps A v a Employment benefits: u ritie s ila b le -fo r-s ale s ec
Compensated absences Benevolent fund Gratuity scheme Provision against off balance sheet obligations
629,295 22.3 18.1 2,331,973 454,026
2 0 .1
34.1.3 2 0 .2 34.2.1 34.1.4 34.1.5
7 ,5 0 7 ,8 3 1 1 7 ,6 0 5 ,2 6 0 3,732,073
2,572,878 2 5 ,1 1 3 ,0 9 1 895,661 173,732 371,257
7 ,4 3 8 ,4 6 3 1 73,407,2254 ,3 8 7 ,8 0 2 42,397,3087 ,8 2 6 ,2 6
838,123 123,789 371,257
F ix e d a s s e ts Post retirement medical benefits
2 0 .1
SStaff lu s / (dfund it) o n re v a lu a tio n o f a v a ila b le -fo r-s a le s ec u ritie s - n e t o f ta x u rp welfare e fic F e relating to: Liabilities d e ra l G o v e rn m e n t S e c u ritie s T e rm F in a n c e C e rtific a te s Barter trade agreements Q u o te d S h a re s a n d m u tu a l fu n d 's Special separation packages G o P F o re ig n C u rre n c y B o n d s 13.2
Payable to GOP for acquisition of assets from CIRC
(1 ,2 3 2 ,9 6 5 ) (2 1 5 ,9 2 2 ) 11,843,111 2 ,7 178,422 3 ,1 5 9 7 2 0 ,7 3 3 (1 1 ,2 6 4 ) 345,922 5 11 ,8 9 2

5,741,230 1 0 1 ,4 2 0 46,798,330 232,460
(1 0 6 ,4 6 1 ) (7 6 3 ,2 4 8 11,657,389 ) 1 ,7 478,4224 0 ,0 7 5 5 6 ,7 7 2
232,460
F re ig n G Payableoto brokers o v e rn m e n t S e c u ritie s Others [including o C U n its Rs. 506 million (2009: Rs. 246 million) N I(U )T L provision of
for contingencies]
185,350 6 1 6 ,0 2 4
4,300,685 42,455,768
N I(U )T N o n -L o C U n its N IT E q u ity M a rk e t O p p o rtu n ity F u n d U n its In v e s tm e n t o u t s id e P a k is ta n

Opening balance Provision against off balance sheet obligations
5 6 5 ,8 7 3
3 6 0 ,5 7 3
18.1
Charge for the year D e fe rre d ta x lia b ility rec o g n is e d 12 Closing rev a lu 18.1.1 S h a re o fbalance a tio n los s o n s e c u ritie s o f a s s o cia te s a n d jo in t v e n tu re
6 ,1 2 9 ,6 7 6 450,061 9 ,2 8 2 ,6 0 2 3,965 (1 ,7 5 0 ,7 2 6 ) 454,026) (2 4 ,0 4 5 7 ,5 0 7 ,8 3 1
7 ,0 6 3 ,6 1 3 9 ,4429,8247 6 7 ,3 4 20,237 (2 ,0 2 8 ,8 5 9 ) 450,061 (2 5 ) 7 ,4 3 8 ,4 6 3
2 0 .2
18.1.1 This represents provision against non-funded exposure of borrowers where the bank considers that the borrower will not be able to meet its contractual obligations at the time of amount becoming due.
M o v e m e n t in s u rp lu s o n re v a lu a tio n o f fix e d a s s e ts - n e t o f ta x
SHARE rp lu s o n S u CAPITAL
19.1 N e t s u rp lu s Capitalv a lu a tio n Authorized o n re
re v a lu a tio n o n J a n u a ry 1 , 11 .4 o f b a n k 's fix e d a s s e ts d u rin g th e y e a r T ra n s fe rre d to u n a p p ro p ria te d p ro fit in re s p e c t o f in c re m e n ta l 2010 d e2009c ia tio n c h a rg e d d u rin g th e y e a r - n e t o f d e fe rre d tax p re Number of shares R e la te d d e fe rre d tax lia b ility
2,500,000,000 2,500,000,000 Ordinary shares of Rs.10 each
1 8 ,5 6 7 ,3 5 2 7 ,0 8 8
2010 (1 1 7 ,7 3 8 ) ----- Rupees in (6 3 ,3 9 6 ) (1 8 1 ,1 3 4 )
1 8 ,6 6 7 ,8 2 4 9 0 ,1 9 5
2009 (1 2 3 ,9 3 4 ) (6 6 ,7 3 3 ) (1 9 0 ,6 6 7 )
'000 -----
25,000,000
25,000,000
1 8 ,3 9 3 ,3 0 6 L e s s : R e la te d d e fe rre d ta x lia b ility o n :

19.2
1 8 ,5 6 7 ,3 5 2 1 ,3 3 4 ,6 6 5 2009 1 9 9 ,0 (6 6 ,7 3 3 ) 9 7 ,4 0 3
RIssued, a tio n a s aand a n u a rycapital e v a lu subscribed t J paid up 1 , 2009 2010 R e v a lu a tio n o f b a n k 's fix e d a s s e ts d u rin g th e y e a r
Number In c re m e n ta l d e p re c ia tio n c h a rg e d d u rin g th e y e a r Ordinary shares of Rs.10 each tra n s fe rre d to p ro fit a n d lo s s a c c o u n t 140,388,000 935,982,200 1,076,370,200 140,388,000 1,205,074,900 1,345,462,900
1 ,2 7 6 ,9 5 1 2010(6 3 ,3 9 6 )
----- Rupees in '000 ----1,403,880 1,403,880
Fully paid in cash Issued as fully paid bonus shares
12
112,050,749 ,2 1 3 ,5 5 5
13,454,629
1 ,2 7 6 ,9 5 1 9,359,822
10,763,702
S h a re o f s urp lu s o n re v a lu a tio n o f fix e d a s s e ts o f jo in t v e n tu re

75.60%).
4 2 5 ,5 0 9
The Federal Government and the SBP held 3 1 , S u rp lu s o n rev a lu a tio n o n D e c e m b e r about 75.60 % shares of the bank as at the year ended ,6 0 5 ,2 6 0 31, 2010 (2009: 0 4 1 7 December 1 7 ,3 8 7 ,8
176

2010 2009 ----- Rupees in '000 ----21. CONTINGENCIES AND COMMITMENTS 21.1 Direct credit substitutes Includes general guarantees of indebtedness, bank acceptance guarantees and standby letters of credit serving as financial guarantees for loans and securities in favor of: Government Financial institutions Others 14,513,887 7,239,823 11,223,626 32,977,336 17,443,452 4,469,377 11,214,383 33,127,212
21.2
Transaction-related contingent liabilities Includes performance bonds, bid bonds, warranties, advance payment guarantees, shipping guarantees and standby letters of credit related to particular transactions in favour of: Government Financial institutions Others 19,863,734 106,771 15,536,805 35,507,310 18,524,777 232,783 13,237,363 31,994,923
21.3
Trade-related contingent liabilities Letters of credit Issued in favour of: Government Financial institutions Others 129,270,162 107,289 31,775,817 161,153,268 126,151,618 161,208 38,736,236 165,049,062
21.4
Other Contingencies 21.4.1 Claims against the bank not acknowledged as debts [including SBP liabilities on Bangladesh borrowing and interest thereon amounting to Rs. 178 million (2009: Rs.175 million) and claims relating to former MBL amounting to Rs.965 million (2009: Rs.965 million)]. 21.4.2 Taxation The income tax returns of the bank for global operations and for Azad Jammu Kashmir have been filed under section 120 and amended by the Taxation Officer under section 122(5A) of the Income Tax Ordinance, 2001 upto the tax year 2010 (accounting year ended December 31, 2009). During the year, the bank received various appellate decisions from the Appellate Tribunal Inland Revenue (ATIR) from tax year 2003 to 2008, in which substantial reliefs have been allowed. Appeal effects of such decisions have also been obtained from the tax department giving rise to additional tax refund of Rs. 6,045 million. The total amount of refund as of December 31, 2010 is Rs. 16,851 million. The matters under contingencies includes interest credited to suspense account and allocation of common expenditure between taxable and exempt / low tax rate. The aggregate effect of aforementioned contingencies amounts to Rs. 3,413 million (2009: Rs. 7,368 million). No provision has been made against the aforementioned matters based on the opinion of tax consultants of the Bank who expect favorable outcome upon adjudication.
8,243,510
6,561,411
177

21.4.3 Provident Fund Last year the management based on the legal advice, calculated interest on the outstanding Provident Fund balance at the five years fixed deposit rate for settlement of the PF balance interpreting the rate as the highest rate as per its understanding of the Supreme Courts decision dated May 04, 2009. Consequently, the difference was adjusted in Bank's Books of Accounts. Some petitioners filed the review petition against the Bank in the Court, asserting that the Banks interpretation of the highest interest rate was not correct. The legal advisor of the Bank informed management that such petition had not been admitted in the Court.
However, in the current period, it came to managements knowledge that the review petition had actually been admitted in the last year, which the Court heard and decided on September 20, 2010. Opening paragraph of the Court judgment state that: Quote The employee on his retirement or leaving the job or the heirs of the person who had passed away, are entitled for the best rate of interest as per scheme instead of prescribed rate on the fixed deposit till the time he was the employee of the Bank; and If the payment has not been made for any reason i.e, litigation, etc., he would be entitled for the best rate of interest admissible to any other ordinary customer till the date of payment.
Unquote Accordingly, the payments have been made to all eligible employees / ex-employees of the bank and compliance of the same has also been made to the Court as desired. Management has treated omission of the fact as prior period error as per IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. The impact of rectification of error in prior period's financial statements is as follows: Rupees in '000 Increase in Deposits (Current Account - Remunerative) Increase in Other assets (advance tax) Decrease in Unappropriated profit Increase in Mark-up / return / interest expensed Decrease in Tax charge for the year Decrease in Profit after taxation Decrease in Earnings per share - after tax (basic and diluted) 21.4.4 Barter Trade Agreements In order to reduce pressure on the balance of payment, the GoP had entered into barter trade agreements with various countries and designated the bank to handle the related transactions on behalf of GoP. Accordingly, the bank executed banking arrangements with the designated banks of these countries and opened accounts in their names. In one of the barter agreement, repayments made to the bank by the GoP could not be utilized due to nonfinalization of exchange rates for its utilization after 1994 at Government level, which was required under the relevant barter agreement. The concerned bank is now demanding payment of interest on the balances in its accounts with the bank. Since these balances are maintained in current accounts and there is also no clause for payment of any interest in the relevant banking arrangement, therefore the bank strongly refused such claims. 1,000,000 350,000 650,000 1,000,000 350,000 650,000 Re. 0.48
178

21.4.5 Golden Handshake (GHS) In 1997 Golden Handshake Scheme (GHS) was introduced with the cut-off date of October 31, 1997. However, despite the lapse of due date, many GHS optees continued their services till 1998 and 1999. In February 1998, a circular was issued for enhancement in salaries, which was not applicable to GHS optees. In calculating dues of GHS optees, their pensionary benefits were taken up till the cut-off date. Such employees filed suit against the Bank in various courts including Federal Services Tribunal and the High Court for enhancement/recalculation of their dues. In some cases, the High Court decided against the bank, despite the disclaimer signed by such optees not to claim any more benefits than what the bank had already paid. This disclaimer came up for interpretation before the Supreme Court, which upheld the Banks view that such disclaimer bars / prohibits the optees to claim any excess amount than what they had received. Lahore and Sindh High Courts, in some cases, decided against the bank, and directed it, to pay additional benefits by calculating upto the actual date of the optees released from the service. The bank filed appeals against the aforesaid orders of both Lahore and Sindh High Courts. The said appeals have been accepted by the Supreme Court and the judgment of Lahore and Sindh High Courts have been set-aside. The cases now pending, if any, are likely to be decided in the light of the above mentioned judgment of Supreme Court of Pakistan in favour of the bank. 2010 2009 ----- Rupees in '000 ----21.5 Commitments in respect of forward exchange contracts Purchase Sale 98,499,566 60,773,315 87,829,307 38,568,464
21.6
Commitments in respect of trading of government securities Sale Purchase 50,000 5,000,000 1,537,996
21.7 21.8
Commitments for the acquisition of operating fixed assets Other commitments Cross currency swap Professional services to be received
2,375,461
6,135,896 166,126
6,914,649 -
22. DERIVATIVE INSTRUMENTS 22.1 The bank is involved in derivative transactions including interest rate swaps, cross currency swaps and equity futures. The bank also entered into forward foreign exchange contracts, the un-realized gain and loss on such contracts are disclosed in note 13 and 18. The Asset Liability Committee regularly reviews the banks risk profile in respect of derivatives. Operational procedures and controls have been established to facilitate complete, accurate and timely processing of transactions and derivative activities. These controls include appropriate segregation of duties, regular reconciliation of accounts, and the valuation of assets and positions. The bank has established trading limits, allocation process, operating controls and reporting requirements that are specifically designed to control risk of aggregate positions, assure compliance with accounting and regulatory standards and provide accurate management information regarding these activities. Accounting policies in respect of derivative financial instruments are mentioned in note 5.8.
179

Product Analysis
Interest Rate Swaps 201 0 Cross Currency Swaps No. of Notion al Contract Princip s al (Rupees in '000) Forward Rate Agreements No. of Contract s FX Options
22.2
Counterpartie s
No. of Contract s
Notion al Princip al (Rupees in '000)
No. of Contract s
With Banks for Hedgin g Market Making -
With FIs other than banks Hedgin g Market Making -
With other entities for Hedgin g Market Making 10 6,135,89 6 -
Total Hedgin g Market Making 10 10 6,135,89 6 6,135,89 6 -
2009 Counterpartie s Interest Rate Swaps No. of Contract s Notional Principal (Rupees in '000) Cross Currency Swaps No. of Contract s Notional Principal (Rupees in '000) Forward Rate Agreements No. of Contract s Notional Principal (Rupees in '000) FX No.Options of Contract s Notional Principal (Rupees in '000)
With Banks for Hedging Market Making

-
With FIs other than banks Hedgin g Market Making -
With other entities for Hedgin g Market Making 10 6,914,64 9 -
Total Hedgin g Market Making 10 10 6,914,64 9 6,914,64 9 -
180

22.3 Maturity Analysis Cross Currency Swaps
Remaining Maturity Upto 1 month 1 to 3 months 3 to 6 months 6 month to 1 Year 1 to 2 Year 2 to 3 Years 3 to 5 Years 5 to 10 years Above 10 Years
No. of Contract s 10 10
2010 ----------------- Rupees in '000 ------------------Notional Mark to Principa Negative Market Positive l 6,135,896 8,395,813 6,063,840 6,135,896 8,395,813 6,063,840
Net (2,331,973) (2,331,973)
2009 ----------------- Rupees in '000 ------------------Remaining Maturity Upto 1 month 1 to 3 months 3 to 6 months 6 month to 1 Year 1 to 2 Year 2 to 3 Years 3 to 5 Years 5 to 10 years Above 10 Years No. of Contract s 10 10 Notional Principa l 6,914,649 6,914,649 Mark to Market Positive 6,525,273 6,525,273
Negative 8,786,137 8,786,137
Net (2,260,864) (2,260,864)
2010 2009 Rupees in '000
23.
MARK-UP / RETURN / INTEREST EARNED On Loans and advances to: Customer s Financial institutions On Investments in: Held for trading securities Available-for-sale securities Held to maturity securities On deposits with financial institutions purchased under resale On securities agreements 57,763,119 1,371,490 59,134,609 53,426,190 1,252,607 54,678,797
792,985 24,615,208 913,191 26,321,384 608,237 2,617,151 88,681,381
2,578,487 16,346,889 957,938 19,883,314 1,739,502 1,823,183 78,124,796
182
181
27.1

2010 2009 This includes Rs. 3.381 million (2009: Nil) insurance premium against directors liability insurance. ----- Rupees in '000 ----Note (Restated) 2010 2009 ----- Rupees in '000 -----
MARK-UP / RETURN / INTEREST EXPENSED 24. 27.2 Donations / contributions include following amounts exceeding Rs. 0.1 million. Deposits Sheikh Zayed Hospital Securities sold under repurchase agreements Karachi Press Club Library Short term borrowings Nighaban Welfare Association Islamabad Police Afzaal Memorial Thalassemia Memon Medical Institute Prime Minister Flood Relief Fund SOS Children AND REDEMPTION OF SECURITIES - net 25. GAIN ON SALE Village, Multan Flood Relief 2010 (Affectees) Quaid-e-Azam Academy Federal Government Securities Poor Patients Aid Society Civil Hospital Market of Business Administration Institute Treasury Bills Pakistan Investment of Cardiology, NIHD Armed forces InstituteBonds Marie Adelaide Leprosy Centre Agha Redemption & Medical College Foundation Gain onKhan Hospitalof NI(U)T Units-LOC Holders' Fund Chief NIT - EMOF Gain onMinister (NWFP) Fund for Internally Displaced Persons Prime Minister Fund for Shares and Mutual FundsInternally Displaced Persons Gain on sale of Foreign Government / Corporate Securities
43,112,819 37,415,573 250 1,094,376 1,817,889 1,517 962,549 1,214,829 100 45,169,744 40,448,291 100 1,368 2010 1,200 2009 ----- Rupees in '000 ----- 50,000 Note 3,000 61,980 250 100 36,824236,871 50,000 25,88525,139 500 2,000 62,709262,010 100 9.5.1 294,4243,875,689 10,000 123,72840,000 1,906,286271,194 119,515 102,950 125,216 184,148 2,512,363 4,593,041 None of the directors / executives or their spouses have any interest in the donee, except Syed Ali Raza and Mr. Tariq Kirmani who are the member Board of Directors Institute of Business Administration and the member Board of Governors' in Marie Adelaide Leprosy Centre respectively.
26. OTHER INCOME 27.3 Auditors' remuneration Rent on property Gain on sale of property and equipment Others 40,840 40,047 201 200 34,968 7,927 0 9 Tota Tota 2,108,083 504,976 Co. l l ------------------------------------ Rupees in '000 ----------------------------------2,183,891 552,950
M. Yousuf Adil Saleem &
11.7Asim Shahid 26.1 Rahman
Anjum
Income Tax Ordinance 2001.
27.
28.
29.
Salaries and allowances Charge for defined benefit plan Non-executive directors' fees, allowances and other expenses Note Rent, taxes, insurance, electricity, etc. 27.1 OTHER CHARGES Legal and professional charges Communications Penalties imposedmaintenance Repairs and by SBP Finance charges on leased assets TAXATION Stationery and printing 13.6.2 Advertisement, sponsorship and publicity For the year Donations / Contributions 27.2 Current 29.1 Auditors' remuneration 27.3 Deferred Depreciation 11.2 Amortisation 11.3 Conveyance For prior year(s) Entertainment Current Travelling Deferred Security services Outsourcing 29.2 Others 29.1 Current taxation includes Rs. 551 million (2009: Rs. 611 million) of overseas branches.
Audit 5,66 5,66 11,32 fee 0 0 0 Review of interim financial 1,98 1,98 3,96 statements 0 0 0 Fee for audit of domestic 4,60 4,60 9,20 26.1 forThis includes Rs. 1,846 millionsundry advisory for compensation of delayed refunds determined under Section 171 of branches 0 0 0 Fee taxation, special certifications and (2009: Rs. Nil) 6,70 30,38 37,08 services 5 0 5 Fee for audit of overseas branches including advisory services and out-of-pocket 48,71 expenses 51,45 Fee for audit of 92 52 subsidiaries 5 5 0 Out-of-pocket ADMINISTRATIVE EXPENSES 2,18 2,45 4,63 expenses 4 0 4 22,05 45,59 116,36 4 5 4
11,32 0 3,96 0 9,20 0 21,97 0 48,61 7 1,09 3 4,00 0 100,16 0
16,850,368 13,299,352 1,666,466 2,400,444 2010 2009 27,793 17,994 ----- Rupees in '000 ----1,627,039 1,297,121 349,364 245,669 690,565 401,866 118,887 321,647 503,525 330,293 118,887 321,647 21,766 10,496 552,794 828,410 141,553 239,138 121,591 102,950 9,871,640 8,890,206 116,364 100,160 (2,049,600) (1,003,099) 1,105,494 875,846 7,822,040 7,887,107 12,920 6,014 128,508 109,879 52,091 41,040 630,216 (4,137,307) 241,972 251,908 (1,568,374) 1,094,480 912,702 (938,158) (4,137,307) 366,241 141,121 6,883,882 3,749,800 1,061,151 1,204,262 26,732,045 22,816,665
184
183
2010 2009 ----- Rupees in '000 ----(Restated)
Principal actuarial assumptions The financial assumptions used in actuarial valuation at December 31, 2010 of pension fund, post retirement medical benefits, benevolent fund and gratuity scheme are as 29.2 Relationship between tax expense and accounting profit follows: Salary increase Discount rate Expected rate of return on plan at statutory rate @ 35% (2009: 35%) Income tax assets indexation Pension rate of inflation in the cost of medical Rate benefits Inflation Increase / (derease) in taxes resulting from: Exposure Rate Number of employees covered under retirement Inadmissible differences benefit plan
Accounting profit before tax
34.1. 2
Income taxed at reduced rate Timing difference no more available Prior year adjustable timing differences Overseas taxation Reconciliation of recoverable from pension fund Prior year tax effects Present value of defined benefit current year Tax charge for
obligationsof plan Fair value assets Net actuarial losses not recognized Cost - Non Past Service Vested
201 0 24,622,287 14% per annum 14% per annum 14%8,617,800 per annum 10% per annum 10% per annum 3% per annum 51,205 14,65 6
Not e
30.
25 49 (22,382,34 (19,781,58 5) 5) (2,197,45 (2,625,02 7)(704,50 2)(782,78 2010 2009 7) 6) 1 (3,522,88 (3,666,34 BASIC EARNINGS PER SHARE (Restated) 3 4) 4) The recognized amount has been restricted to present value of any economic benefits available in the form of refunds from the plan or attributable to shareholders of the holding company future contribution to the Rupees in '000 Profit reduction in 17,809,304 17,450,811 plan. 201 200 Numbers '000 0 9 1,345,463 Weighted average number of ordinary shares 1,345,463 in '000 --------- Rupees
(858,965) (1,458,958) 1,623,454 201 200 0 ----- Rupees (1,568,374) in '000 9 ----12,000 10,000 630,216 (4,137,307) 21,761,4 19,523,0 6,883,882 3,749,800
200 9 21,198,842 14% per annum 14% per annum 7,419,594 14% per annum 10% per annum 10% per annum 3% per annum 14,56 293,017 5
Basic earnings per share fund
Movement in recoverable from pension
Rupees
13.24
12.97
31.
32.
Opening net (3,666,34 (4,496,94 assets for the 3) Charge 1,462,13 30.1 Earnings per share for the year 2009 has been restated for the effect of bonus shares issued and prior4) 695,26 period error identified as year 2 9(631,54 Contribution to the fund made during the (551,80 discussed in note 21.4.3. year: 1) 0) Closing (3,522,88 (3,666,34 balance 3) 4) Charge for pension DILUTED EARNINGS PER SHARE fund Current service 581,30 412,01 cost 4 8 Interest 2,733,22 2,101,61 Basic and diluted earnings per share are same. cost 7 8 Expected return on plan (2,769,42 (2,483,45 2010 assets losses 2) 71,87 9) 2009 Actuarial ----- Rupees in 1,431,96 '000 ----recognized Cost 4 Past Service 78,27 Note -Vested 9 2 695,26 1,462,13 2 9
CASH AND CASH EQUIVALENTS
Movement of present value of defined benefit obligation Cash and balance with treasury banks Opening present value Balance with other banks of defined benefit obligation Current service Overdrawn nostros cost Interest cost Benefit paid Past service costvested Past service cost-non vested Acturial (gain) / loss on obligation STAFFClosing present value of defined benefit STRENGTH obligation Movement in fair value of plan Permanent assets Temporary / on contractual basis Opening fair value of plan Total Staff Strength on plan assets Expected return
6 7 15.2
115,657,025
19,523,0 30,743,368 49 581,30 (537,074) 4 2,733,22 145,863,319 7(923,08 (153,06 2010 8) 21,761,4 25 7)
116,668,514
15,011,5 28,786,397 55 412,01 8 (64,237) 2,101,61 145,390,674 8(884,14 6) 1,416,80 0 616,00 0 849,20 2009 4 19,523,0 49
33.
34.
19,781,5 17,738,9 17,296 85 16,524 93 2,769,42 2,483,45 assets 2 551,80 9 631,54 Contribution 1 0 Benefits (923,08 (884,14 33.1 s In addition to the above, the Group is utilizing the services of other companies for outsourcing purposes and the number of persons paid 7) 6) deployed / (loss) on Acturial gain by such companies as at year end are 7,337 (2009: 6,406). 202,62 (188,26 assets fair value of plan 4 1) Closing 22,382,3 19,781,5 assets 45 85 EMPLOYEE return on plan Actual BENEFITS 2,972,04 2,295,19 assets 5 8
15,030 1,494
15,607 1,689
34.1 Defined benefit plans

34.1.2. 1
34.1.1 General description
Components of fair value of plan assets as a percentage of total fair value of plan assets 201 0% 200 9%
General description of the type of defined benefit plan and accounting policy for recognising actuarial gains and losses is Bond 84.4 85.9 disclosed in note 5.13 to the consolidated financial statements.
s Equitie s Cash and net current assets 4 11.7 1 3.8 5
3 12.0 22.05
185

Reconciliation of recoverable from pension fund for the five years are as follows: 2010 2009 2008 2007 2006 ------------------------------ Rupees in '000 -----------------------------Present value of defined benefit obligations Fair value of plan assets Net actuarial (losses) / gains not recognized Past Service Cost - Non Vested 21,761,425 (22,382,345) (2,197,457) (704,507) (3,522,884) 19,523,049 (19,781,585) (2,625,022) (782,786) (3,666,344) 15,011,555 (17,738,992) (1,587,558) (181,948) (4,496,943) 12,704,049 (19,503,391) 3,122,997 (3,676,345) 12,069,249 (17,333,982) 2,312,800 (2,951,933)
34.1.3 Reconciliation of payable to medical benefit plan Present value of defined benefit obligations Net actuarial losses not recognized
Note
2010 ----- Rupees in '000 -----4,019,855 (287,782) 3,732,073
2009
18 Movement in net liability recognized Opening net liability Charge for the year Benefits paid Charge for medical benefit plan Current service cost Interest cost Movement of present value of defined benefit obligation Opening present value of defined benefit obligation Current service cost Interest cost Benefit paid Actuarial loss on obligation Closing present value of defined benefit obligation Reconciliation of payable to medical benefit plan for the five years are as follows: 2010 Present value of defined benefit obligations Net actuarial (losses) / gains not recognized
3,432,771 (25,546) 3,407,225
3,407,225 589,042 (264,194) 3,732,073
2,946,554 522,657 (61,986) 3,407,225
108,454 480,588 589,042
115,354 407,303 522,657
3,432,771 108,454 480,588 (264,195) 262,237 4,019,855
2,909,308 115,354 407,303 (61,985) 62,791 3,432,771
2009 2008 2007 2006 ------------------------------ Rupees in '000 -----------------------------3,432,771 (25,546) 3,407,225 2,909,308 37,246 2,946,554 2,726,617 (144,141) 2,582,476 2,595,291 (318,705) 2,276,586
4,019,855 (287,782) 3,732,073
Effect of 1% movement in assumed medical cost trend rate 2010 2009 Increase Decrease Increase Decrease ------------------------------ Rupees in '000 -----------------------------Impact on obligations Impact on cost 404,578 70,093 (364,652) (59,996) Note 34.1.4 Movement in net liability recognized for benevolent fund Opening net liability Charge for the year Benefits paid 18 Charge for benevolent fund Current service cost Interest cost Actuarial gains recognized 838,123 79,725 (22,187) 895,661 14,392 117,337 (52,004) 79,725 765,748 114,022 (41,647) 838,123 13,317 107,205 (6,500) 114,022 371,037 120,367 (270,479) (9,830)
2010 2009 ----- Rupees in '000 ------
186

2010 2009 ----- Rupees in '000 ----M ovement of present value of defined benefit obligation Opening present value of defined benefit obligation Current service cost Interest cost Benefit paid Actuarial (gain) on obligation Closing present value of defined benefit obligation 838,123 14,392 117,337 (22,187) (52,004) 895,661 765,748 13,317 107,205 (41,647) (6,500) 838,123
Reconciliation of net liability recognized for benevolent fund for the five years are as follows: 2010 Opening net liability Net charge for the year Benefits paid 2009 2008 2007 2006 -------------------------- Rupees in '000 --------------------------765,748 114,022 (41,647) 838,123 759,957 53,256 (47,465) 765,748 Note 34.1.5 Reconciliation of payable to gratuity benefit plan Present value of defined benefit obligations Net actuarial losses not recognized 18 M ovement in net liability recognized Opening liability Charge for the year Benefits paid Charge for gratuity benefit plan Current service cost Interest cost M ovement of present value of defined benefit obligation Opening present value of defined benefit obligation Current service cost Interest cost Benefit paid Actuarial loss on obligation Closing present value of defined benefit obligation 136,211 33,484 19,069 (2,610) 1,730 187,884 116,216 25,149 16,270 (23,900) 2,476 136,211 16,270 33,484 19,069 52,553 25,149 41,419 123,789 52,553 (2,610) 173,732 106,270 41,419 (23,900) 123,789 187,884 (14,152) 173,732 136,211 (12,422) 123,789 802,937 22,756 (65,736) 759,957 729,725 129,185 (55,973) 802,937
838,123 79,725 (22,187) 895,661
2010 2009 ----- Rupees in '000 -----
Reconciliation of net liability recognized for gratuity benefit plan for five years are as follows 2010 2009 2008 -------------------------- Rupees in '000 --------------------------187,884 136,211 116,216 (14,152) (12,422) (9,946) 173,732 123,789 27,409 106,270 2007 82,098 (4,309) (11,081) 66,708 2006 52,205 (2,635) (22,161)
Present value of defined benefit obligations Net actuarial gains not recognized Past Service Cost - Non Vested
187

34.2 Other employee benefits 34.2.1 Movement in net liability recognized for compensated absences Opening net liability Charge for the year Benefits paid during the year 18 2,397,308 229,971 (54,401) 2,572,878 2,246,752 255,887 (105,331) 2,397,308
Reconciliation of net liability recognized for compensated absences for the five years are as follows: 2009 2008 -------------------------- Rupees in '000 --------------------------- 1,662,930 2,397,308 2,246,752 175,570 150,556 583,822 2,572,878 2,397,308 2,246,752 2010 2007 1,639,708 23,222 1,662,930 2006 1,521,326 118,382 1,639,708
Opening net liability Net charge for the year
34.3 Expected contributions to be paid to the funds in the next financial year 2011 Pension Benevolent Medical funds Scheme Scheme --------------------- Rupees in '000 --------------------472,809 140,695 685,245
Gratuity Scheme 67,359
Contributions to be paid 35. COMPENSATION OF DIRECTORS AND EXECUTIVES
President 2010 2009
Directors 2010 2009 2010
Executives 2009
Fees Managerial remuneration Charge for defined benefit plan Rent and house maintenance Utilities Medical Conveyance Leave fare assistance Bonus and others
--------------------------------------- Rupees in '000 ---------------------------------------------26,903 11,760 10,200 4,539 6,840 2,680 1,228 101 153 12,456 10,200 38,109 35,641 69,645 64,262 1 26,903 6
17,994 17,994 6
672,313 90,761 346,189 100,834 138,597 211,726 443,494 2,003,914 796
381,504 49,596 190,388 45,998 48,149 102,529 287,546 1,105,710 507
Number of persons
The President and certain executives are also provided with free use of the bank's cars, household equipment and free membership of clubs. Executives mean officers, other than the chief executive and directors, whose basic salary exceeds five hundred thousand rupees in the financial year. This note does not include particulars of directors, chief executives and executives of subsidiaries. 36. FAIR VALUE OF FINANCIAL INSTRUMENTS The fair value of traded investments is based on quoted market prices, and have been disclosed in note 9. Fair value of fixed term loans, other assets, other liabilities and fixed term deposits cannot be calculated with sufficient reliability due to the absence of current and active market for such assets and liabilities and reliable data regarding market rates for similar instruments. The provision for impairment of loans and advances has been calculated in accordance with the Group's accounting policy as stated in note 5.10. The maturity and re-pricing profile and effective rates are stated in notes 41.4.1 and 41.3.3 respectively. In the opinion of management, the fair value of the remaining financial assets and liabilities are not significantly different from their carrying values since assets and liabilities are either short-term in nature or in the case of customer loans and deposits are frequently repriced.
188

37. Segment Details with respect to Business Activities
The segment analysis with respect to business activity is as follows:Corporate Finance Trading & Sales Retail Banking Commercial Banking Payment & Settlement Agency Services Assets Management Retail Brokerage
----------------------------------------------------------------------------------------- Rupees in '000 ----------------------------------------------------------------------------------------2010 Total income Total expenses Net income Segment Assets (Gross) Segment Non Performing Loans Segment Provision Required Segment Liabilities Segment Return on net Assets (ROA) (%) Segment Cost of funds (%) 2009 Total income Total expenses Net income (loss) Segment Assets (Gross) Segment Non Performing Loans Segment Provision Required Segment Liabilities Segment Return on net Assets (ROA) (%) Segment Cost of funds (%) 0.00% 0.00% 12.51% 0.00% 479,69 5 2,074 477,62 1 2,475,93 5 32,172 2,443,76 3 3,494,89 6 18,184,06 0 13,400,19 0 4,783,86 9 149,694,92 8 7,369,75 0 5,118,05 0 223,426,26 5 3.21% 3.76% 29,554,32 7 18,232,12 2 11,322,20 5 779,355,26 563,804,28 4 50,647,01 8 601,883,51 1 1.59% 5.90% 0.00% 0.00% 13.85% 0.00% -1.75% 0.00% 1,786,03 0 1,051,89 2 734,13 8 4,003,35 8 2,464,78 1 1,538,57 7 13,153,63 9 10,249 13,262 (3,013) 178,52 0 41,067 77,162 75,700 1,462 376,02 1 109,87 4 0.38% 0.00% 0.00% 0.00% 12.20% 0.00% 347,11 9 2,074 345,04 5 2,739,65 1 564,47 9 2,175,17 2 8,988,04 0 59,633 18,246,78 3 13,736,23 9 4,510,54 4 145,766,09 6 6,618,31 2 5,564,90 9 222,764,48 1 3.10% 4.39% 33,717,30 8 18,602,27 4 15,115,03 4 868,756,83 680,253,04 1 55,678,71 4 683,764,37 1 1.84% 5.93% 0.00% 0.00% 12.51% 0.00% 3.05% 0.00% 2.24% 0.00% 2,287,44 1 1,254,45 4 1,032,98 7 4,233,77 3 2,804,16 2 1,429,61 1 13,957,12 5 20,669 14,828 5,841 191,31 0 48,016 69,776 61,723 8,053 359,06 0 83,134
38. TRUST ACTIVITIES 38.1 National Investment Trust (NIT) Under a trust deed, the bank provides services, as a trustee to NIT and is performing functions of sale / purchase of NIT units, safe custody and maintaining unit holders accounts. The bank is keeping approximately 1,010 million (2009: 1,430 million) shares with market value of Rs. 35,500 million (2009: Rs. 55,472 million) in safe custody / Central Depository Company on behalf of NIT.
38.2 Long Term Credit Fund (LTCF) Consequent upon the NDFC amalgamation, the bank manages on behalf of the GoP, LTCF established from the proceeds of loans disbursed by various international funding agencies for financing private sector energy development projects. Fund assets are accounted for separately from those of the bank and amounted to Rs. 58,885 million on December 31, 2010 (2009: Rs. 38,130 million). 38 Endowment Fund The Students Loan Scheme was launched by the GoP in collaboration with major commercial banks of Pakistan to facilitate meritorious students in acquiring education by offering markup free loans. The scheme is administered by a high powered committee headed by the Deputy Governor, State Bank of Pakistan and the Presidents of NBP, HBL, UBL, MCB, ABL and the Deputy Secretary, Ministry of Finance as member. The State Bank of Pakistan has assigned National Bank of Pakistan to operate the scheme. The Committee in its meeting held on August 7, 2001 approved creation of Endowment Fund initially at an amount of Rs. 500 million, Rs. 396 million were transferred from the old Qarz-e-Hasna Fund, Rs. 50 million contributed by Government of Pakistan and Rs. 54 million were contributed by participating banks (HBL, NBP and UBL 25% each, MCB 17.5% and ABL 7.5%). The amount of the fund in investments stands at Rs. 697 million as at December 31, 2010 (2009: Rs.583 million).
189

38.4 Transfer and Assignment Agreement with SME Bank Limited During the year, the bank and the SME Bank entered into a transaction on July 01, 2010 for transfer and assignment of Rs. 4,466 million non-performing loans by Bank to the bank on deferred price These These non-performing loans were fully provided. As per the pricing formula, the bank will pay to the the SME to on basis. loans As the SME Bank of the recoveries of these non-performing loans net of all expenses on annual basis, except for the first two years when higher of the fifty fifty percent the percent of nettwenty-five percent of the gross recoveries will be paid to SME Bank. The differential on account of payment on the basis of twenty-five recoveries or percent of gross recoveries in the first two years, if paid, will be adjusted by the bank against the net recoveries in the subsequent years."
39. RELATED PARTY TRANSACTIONS

The Group has related party relationship with its associated undertakings, joint ventures, employee benefit plans, and its key management personnel (including their details of investments in associated undertakings are stated in note 9 to these financial associates). The statements. Transactions between the Group and its related parties are carried out under normal course of business, except employee staff loans, employees sale of of assets and provident fund that are as per agreement. Detail of loans and advances to the companies or firms, in which the directors of the Group are interested as directors, partners or in case of private to companiesare given in note 10.8 to these consolidated financial statements. There are no transactions with key management personnel other than under their members, as terms of employment. Contributions in respect of staff retirement and other benefit plans are disclosed in note 34 to these financial statements. Remuneration to the executive and disposal of vehicles are disclosed in notes 35 and 11.6 respectively to the consolidated financial statements. At January 01, 201 Given 0 Repaid during during theyear theyear At December At January 31, 01, Given during theyear 200 9 Repaid during theyear At December 31
-------------------------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------------------------Advance s Key Management Executives Associates 97,43 9 1,287,94 2 1,385,38 1 At January 01, 46,55 (17,473 95,93 126,51 36,47 ) 1 9 1,294,41 1,269,49 7 9 8 53,03 (17,473 1,420,93 1,365,42 0 ) 8 9 201 Received 0 Repaid At December At January during during 31, 01, theyear theyear 4,52 4 18,44 4 22,96 8 (3,016) (3,016) 97,43 9 1,287,94 2 1,385,38 1 At December 31
200 Received 9 Repaid during during theyear theyear
-------------------------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------------------------Deposits Key Management Executives Pension Fund (Current)Fund (Fix Pension Deposit) Fund Provident (Restated) 15,50 0 405,35 1 7,300,00 0 7,448,10 1 15,168,95 2 214,53 8 9,798,21 1 2,600,00 0 3,093,22 1 15,705,97 0 (171,902 ) (10,198,525 ) (1,500,000 ) (1,632,050 ) (13,502,477 ) 58,13 65,03 7 8,400,00 0 8,909,27 2 17,372,44 5 6,22 8 3,940,16 1 5,900,00 0 8,507,30 0 18,353,689 72,58 1 12,791,62 04,800,00 0 3,548,53 0 21,212,73 1 (63,309 ) (16,326,430 ) (3,400,000 ) (4,607,729 ) (24,397,468 ) 15,50 0 405,35 1 7,300,00 0 7,448,10 1 15,168,95 2
201 200 0 9 ------ Rupees in '000 -----Placements with: Pension Fund Joint venture Associates Repo borrowing from: Associates Income for the yearn advances / placements O with: Joint Ventures Key management executives by company in which a director of the bank is interested as Debts Due director Expenses for the year Remuneration to key management executives defined benefit Charge for plan Mark-up on Deposits of:Provident fund Pension fund management Key executives Mark-up on Borrowing (Repo / Call) : Associates 264,59 123,33 2 380,36 2 272 3,50 3 2,032,19 0 300,59 6 11,72 1 1,772,84 0 929,34 3 1,10 1 2,900,00 0 451,58 823,33 2 -
2,38 7 6,24 6 1,082,27 9 247,23 446,91 4 1,493,50 5 1,295,07 9 546
4,11 7 39.1 Although the Federal Government and the SBP held about 75.60 % shares of the bank (2009: 75.60% ), the transactions with these entities have not been treated as related party transactions for the purpose of this disclosure.
190 192
191
of
200 0 Rupees in '0009 ---------
201 40. CAPITAL ASSESSMENT AND ADEQUACY BASEL 238,851,965 13,737,919 1,603 18,378,90924,674,282 II 23,730,560 19,243,929 207,737,616 687,600 786,299,101 25,651,277 28,017,807 31,096,204 9,737,921 10,021,636 5,730,966 79,980,949 2,644,736 1,602,261 17,208,192 26,352,769
40. Tier I Amount 2 40.1 SBP Capital Statutory minimum capital requirement and management of capital 1,21 Net sheet paid-up Fully 13,454,6 10,763,7 capital 29 02 The Generalbank's objectives when managing capital, which is a broader concept than the 'equity' on the face of the consolidated 17,622,2 15,865,9 as reserves 24 03 statement Unappropriatedof financial position, are: 67,103,6 62,346,5 bucket profits 11 95 Non-controlling 498,07 110,93 12,334,328 22,466,686 2,386,823 8,885,000 583,950 1,891 6 98,678,5 89,087,1 - interest To comply with the capital requirements- set - - the regulators of the banking- markets where the bank operates;0 - by - - - Deduction 40 30 109,61 Deduction both 2009 CRM ------------------------------------------------- Rupees in '000------------------------------------------------s: with Book value of Goodwill and 1,294,8 526,58 Intangibles safeguard the bank's ability to continue as a going concern so that it can continue to provide returns for 89 8 To Shortfall in provisions required against classified assets portfolio irrespective of any shareholders and benefits for other stakeholders; and relaxation 2,349,7 agency allowed 49 Reciprocal cross holdings by 23,730,560 128,855,820 216,622,616 687,600 942,567,779 56,22 25,651,277 30,404,630 102,447,635 31,096,204 9,737,921 10,021,636 18,065,294 18,378,90924,674,282 238,851,965 14,321,869 1,603 2,644,736 1,602,261 17,208,192 26,352,769 banks 1 Outstanding 50% of the investments in equity and other regulatory capital of To maintain a strong capitalAmount support the development 1,21 business. base to of its majority owned securities or other financial subsidiaries not Bank ofconsolidatedto the BSD Circular No 7 dated 15th April, 2009, minimum paid up capital requirement have been revised as statement of financial 1,656,7 1,582,5 According in the position 99 53 Totalfollows: eligible Tier I 93,320,8 86,977,9 capital 82 89 across numerical Supplementary Capital Tier II 13,968,448 2,564,314 6,939,830 109,138,745 1 17,372,791 1933,685,464 20,185,825 26,631,014 14,470,749 14,760,819 16,845,065 297,226,791 1,727,929 28,977,620 29,393,163 146,094,320 953,430 26,330,41 Capital 15,268,1 General Provisions subject to 1.25% of total Risk 3,765,4 2,014,9 Amount Minimum Paid up Capital Dead line by which to be WeightedACRA Assets 32 14 Revaluation Reserve (upto A 12,088,5 12,842,2 A of losses) -Net in '000' (Net N / Rs. increased N/ 45%) 56 35 Foreign exchange translation 7,507,2 7,529,1 P 31-12-2009 6,000,000 of reserve 01 56 23,361,1 22,386,3 7,000,000 31-12-2010 applied 89 05 Deduction 8,000,000 31-12-2011 s: 50% of the investments in equity and other regulatory capital of 13,169,244 102,023,660 8,885,000 155,163,645 9,000,000 31-12-2012 31,085,741 majority owned - - - - - - - the securities or-other financial subsidiaries not Deduction - - - - - JCR VIS 10,000,000 31-12-2013 consolidated These the financial in 2010 CRM 1,656,7 1,582,5 A A N /N / inclusive position 99 53 Total eligible Tier II 21,704,3 20,803,7 capital 90 52 Tier III SBP requirement the Capital Eligible Tier III 17.25 %. Capital credit Total eligible Institutions Capital 40. 3 Capital Adequacy Ratio Tier I 115,025,2 72 201 107,781,7 40 200 -
The paid-up capital of the bank for the year ended December 31, 2010 stood at Rs. 13.454 billion and is in compliance with for the said year. In addition the bank has maintained minimum Capital Adequacy Ratio (CAR) of 13,968,448 2,564,314 6,939,830 140,224,486 1 17,372,791 17,291,779 154,979,320 953,430 20,185,825 46,854,708 26,631,014 14,470,749 14,760,819 16,845,065 297,226,791 1,727,929 28,977,620 29,393,163 26,330,41 Outstanding Amount 1
201 200
The State Bank of Pakistan's regulatory capital as managed by the bank is analyzed into following tiers:
Capital Requirements
to
Credit Risk Claim Category # Securitisation 1,2,3,4, 5 Unrated Unrated 1,236,9 2,3,4, 5 Unrated 849,80 sector 8,498,0 12,369,5 Rating Exposures Sovereigns risk on PublicII capital, which includes general reserve forUnrated 2,3,4 Tier Credit risk loan losses, 2 revaluation reserves, exchange translation reserves Approach' for all itsCorporate Exposures. entities on other 24 48 4,032,6 - - - -55 - 924,69 40,326,5 9,246,9 Credit Claims 1 - - - 1 - 1 and BanksSME'sOthers sovereigns 59 2 86 18 Bank subordinated debts. 1,014,6 843,82 10,146,3 8,438,2 s 35 8 54 76 Corporate 16,053,6 20,912,1 160,536,0 209,121,1 s 04 18 38 79 Retail 8,185,4 5,998,5 81,854,0 59,985,7 Tier secured by which includes short term sub-ordinated debts.589,57 capital is71643,26for the purpose of meeting a solely portfolio capital, residential 06 This 59 13 LoansIII 5,895,7 6,432,6 for property 7 2 73 18 Past due 3,815,4 1,951,9 38,154,2 19,519,1 proportion of the capital requirements for market risk. using loans 29 15 93 51 Investment in fixed 2,633,0 2,467,4 26,330,4 24,674,2 assets 41 28 11 82 Other 2,474,4 2,670,2 24,744,2 26,702,7 Approach Various limits arenon-marketto elements of the capital base. Qualifying tier II and tier77 capital cannot exceed the tier I capital. III assets 30 96 66 Off balance sheet - applied related 8,052,9 5,102,5 80,529,5 51,025,9 rating balance sheet - market related Revaluation reserves are eligible upto 45 percent for treatment as52112,13 exposure tier II capital. There is also restriction on the amount of 93 46,09 17 33 460,97 Off 1,121,3 applied exposure 2 8 18 6 Equity exposure risk held in losses upto 1.25 percent of total risk weighted assets. Subordinated debts cannot exceed 50 1,619,0 3,212,7 16,190,9 32,127,6 general reserve for loanthe banking book 96 61 64 05 Credit Exposures subject to exceed 250 percent percent of tier I capital. Further tier III capital cannotStandardised 49,432,7 of tier I capital. 46,010,5 494,327,6 460,104,9 63 00 33 65 Market Risk Interest rate 248,49 252,50 2,484,9 2,524,9 Credit risk - General position assets are measured according to the nature of andsovereigns and onon GoP of credit, market and other risks SBP Equity disclosures Claims ononon other sovereignson estimate Claims other sovereigns andan GoP Claims other3,880,3 GoP 3 0 28 96 Risk the 'Standardised reflecting and3,134,6 38,803,4 31,346,3 The Bankrisk weighted uses risk 32 30 15 Foreign exchange 2,810,8 3,627,5 28,108,6 36,275,8 associated with each asset and counterparty, taking into account 43 eligible collateral or guarantees. A similar treatment is any II guidelines as is given below: Claims on Government 68 Pakistan of The risk 88 77 83 Listed Equity nature of - banks 6,939,7 7,014,7 69,397,0 70,147,1 adopted for off balance sheet exposures, with some adjustments to reflect more contingentinvestments potential losses. Foreign Currency claims on SBP 04 35 94 Operational 10,377,6 9,495,9 103,776,9 94,959,1 Secured20 residential property by reputable Risk 94 20 37 97 Cash and Cash Equivalents Unlisted RISK667,501,6 Investments inMANAGEMENT 625,211,3 fixed assets Tota 66,750,1 62,521,1 equity investments l 61 40 05 56 Bank's policy is to maintain strong capital base so as to maintain, investor, creditor and market confidence and to sustain Capital Adequacy future development of the business. The adequacy of the Bank's capital is monitored using, among other measures, the sheet Ratio rules and ratios established by the State Bank of Pakistan. The 115,025,2 ratios compare 107,781,7 the amount of eligible capital with the total Total eligible regulatory capital (a) 40. Bank risk-weighted assets. The Bank monitors and reports its capital ratios Retail portfolio loans which ultimately determine the Past due of under SBP rules, held 2 72 40 regulatoryWeighted required to be maintained by Banks40. DFIs. Corporates and Exposures (b) Corporates 625,211,3 Corporates Total Risk capital 667,501,6 Assets 3 05 56 Banks PSE's Banks capital during the year. PSE's of 17.23 There have been no material changes in the(a) / Bank's management Capital Adequacy 17.24 40.4 40.5 Ratio (b) % %
0 0 capital, which comprises of highest quality capital element and include9fully paid up capital,Weighted in 9 share Risk balance Assets premium account, reserve for issue of bonus shares, general reserves and unappropriated profits (net of Not ---------------------------- Rupees in '000 ----------------------accumulated losses, if any). e
a products,This to of continues establishment Accord. financial II it that Basel new the ensure the to innovative committed of and implementation Bank advancement, therefore National wide of is growth Bank technological Bank The Pakistan. markets, term experienced of growth global/local long economic the of sustainable volatility maintain and reputed also would most forsustainable consultant
This would cater to the interesti.e. all thethe of stakeholders, especially the depositors.. This the profile of Accord. in one role risk of leading II services its Basel impact and the consultancy potentially of critical requirements its of can aware that external
the fully activities of and hiring is Practices country the of range was the Best objective in full bank international the largest to caters this
achieving the changing to regulatory environment etc. that being Bank retain the role of the market leader . System towards National of capacity Management milestone align its in will Bank significant consultancy Risk National robust A
194
193
In conjunction with the Consultant, there has been significant progress towards achieving the objective of this 41.1.3 Credit Risk consultancy, such as: Policy, Strategy & ICAAP Focus on Policy formulation and review, monitoring progress risk taking and approving units; Risk Management Function has been restructured and made independent of allon implementation, ICAAP and strategic is to the BOD and administrative reporting to the President of the work with the support its functional other reporting aspects etc. Where required/ applicable, the function will and involvement of the respective business and other groups/ functions/ functions and will coordinate Bank. with in Division (RMD) has been reorganised, and staffing capacity strengthened to effectively cater to them Risk Managementthis regard. the requirements of the Basel II Accord. Credit Risk review Wing has been made a separate entity to focus on this key risk 41.1.4 Credit Modeling & function. Data collection, structuring and sanitization have also been recognized as a critical component in Analytics risk management, therefore a dedicated Wing has been created for this challenging function. This includes development of obligor rating template and supporting rating framework to achieve Risk Management Functions charter and specific Job Descriptions for all of the Wings have been designed such compliance, coordinating the process of data collection, cleansing and validation processes to and approved.be Management Charterand provide due facilitation and support responsibilities of the Risk Risk undertaken in this regard states the scope, functions and roles and in implementation of credit Management rating going engine, Function. forward. A bank wide diagnostic exercise, interactively with all the Groups within the Bank, is underway to identify 41.1.5 Credit Portfolio and systematically document areas for improvement. This will subsequently lead to the designing of a remediation plan Management and its implementation. A crucial aspect of the Consultants interactive methodology is that it will evolve into a Buy in of Credit portfolio management activities extend to development of an effective portfolio all Groups in the Bank. the management framework for conduct of portfolio quality reviews and proactive reporting to structure and
the management for necessary remedial Establishment of an Executive Risk Management committee, comprising of key group heads, emphasizing the actions. Bank's commitment to a robust risk management process and risk culture. 41.1.6 Country Risk Management The implementation process of this consultancy will also systematically lay the building blocks for the This includes establishing, jointly with relevant stakeholders, processes and reporting framework future implementation of the Advanced Approaches of the Basel effective management of country risk including risk assessment, limit setting, exposure Accord. for monitoring, concentrations, limit breaches and other reporting on 41.1 Credit Risk aspects. Management 41.1.7 Basel Risk 41.1.1 Credit II Implementation & Risk Automation Project Basel II/ State Bank of Pakistan's Unit is responsible for managing the Basel II project in In line withRisk Automation Project Risk Management Guidelines, Risk Management has close coordination constituted a with the Basel II consultants and with the activeadvancesand involvement of other dedicated Risk Review Unit for undertaking review of loans, support and cash credits on post functions within facto The Unit is responsible to independently reviewand approved credit cases (post facto) Unit is basis. Risk Management as well as other groups the functions across the bank. The also pertaining to perform project management and support services in relation to evaluation, responsible to new proposals, renewals, limit enhancements, restructuring, rescheduling, write-offs and selection cases involving other creditof suitable riska reasonable sample basis and report the results and exceptions and implementation decisions, on management applications, as required by the to Chief Risk Officer for onward communication to Executive Risk Management Committee, Board bank. the Risk Automation Project Unit is also responsible for coordinating with various functions regarding Committee and other relevant Risk authorities. from the risk management applications and providing details to the respective vendors their requirements (if related features are available or supposed to be available in any existing or already the The Unit is responsible for deciding on the loan category that is to be treated as relation toor high procured & coordinating with the respective functions and selected vendor(s) in high-risk system) priority and employing more robust andof deployment of system loans in this category. Examples in nature blue prints and in the process detailed reviews on the in accordance with the approved finalization of system may include watch list, rescheduled, restructured, write-off cases, loans approved as special cases, blue prints. loans sanctioned as exceptions against the banks restricted industries/ markets, credits not aligned to approved strategies/ target markets/ risk asset acceptance criteria, loans to borrowers having a 41.1.8 the Consumer Risk history downgrades, loans in high-risk industry/ client segment, loans assigned exceptional of rating Management rating such as too low or too high risk rating particularly not aligned with the industry averages etc. grades The Unit is responsible for developing an overall consumer risk policy framework describing and significant credit exceptions as per the banks policies and other the consumer risk structure, principles, standards and policies for product programmed designing procedures. and approvals management of third party relationship. Consumer Risk Management also supervises 41.1.2 Credit Risk Architecture that is a framework in place for effective assessment and measurement and mitigation and there reportingrisks arising from the consumer and programme based of credit The Credit Risk Architecture Unit has very recently been formed SME part of the as a portfolios. organizational restructuring and a charter for it has been designed. Credit Risk Architecture is responsible to The primary responsibilities includes formulation/ proposition of credit risk strategies, policies, supervise is a framework in place for effective assessment/ measurement, mitigation and reporting that there credit assessment methodologies, credit well as management including limit setting, MIS and of credit risks both on counterparty asportfolio portfolio monitoring. level. Primary responsibilities includes formulation and proposition of credit risk strategies, policies, credit assessment methodologies, credit portfolio and sector management, including limit setting, MIS and monitoring. The Unit has ownership for the development process of credit risk ratings models for current subsequently rating models to be used for the Basel II FIRB approach; this includes use and necessary data collection, storage, cleansing and validation. -
195

41.1.1 0 41.1.10. 1 SEGMENTAL INFORMATION Segments by class of business Advances (Gross) Rupees in '00 0 4,997,36 27,067,25 9 70,022,91 7 6 7,118,13 13,176,31 8 9 706,58 9,644,65 1 1,010,15 6 2,819,60 9 14,586,92 5 60 2 27,805,18 4 7,825,45 6 7,537,26 6 62,266,76 7 72,023,48 18,004,25 8 18,887,32 7 96,815,00 16,623,82 9 64,225,52 6 87,992,88 1 22,187,07 9 46,785,78 1 540,130,3 6 78 Advances (Gross) Rupees in '00 0 3,203,10 0 23,453,26 3 71,794,47 98,935,95 3 8,915,63 7 725,52 3 8,128,36 9 832,98 6 3,664,42 9 12,680,20 2 18,414,75 97,904,13 9 7,268,05 1 86,138,00 61,622,47 4 14,460,81 2 16,586,96 9 6,494,11 5 14,272,96 9 71,800,41 4 83,793,87 0 18,422,05 6 41,590,93 2 531,103,5 07 Advances (Gross) Rupee sin '000 133,982,4 91 406,147,8 87 540,130,3 78 Advances (Gross) Rupee sin '000 155,271,3 60 375,832,1 47 531,103,5 07 Percentag e % 0.9 5.0 3 12.9 1 61.3 2.4 2 0.1 4 1.7 3 0.1 9 0.5 9 2.7 2 0.0 0 5.1 0 1.4 5 1.4 5 11. 0 0.3 5 3.3 7 3.5 3 0 1.2 3.0 6 11.8 8 16.2 9 9 4. 1 8.6 1 100.0 6 0
Chemical and Agricultur pharmaceuticals Textil e Cemen e Suga t Flour r Rice Shoes & leather processing Automobile garments and transportation Financia equipment Insuranc l Transportatio e Real estate n Electronics and electrical construction Production appliances and transmission of Food and energy Fertilizer tobacco Metal products Telecommunicatio Hotel and n Public sector commodity services Individual operations General s Other traders s
201 0 Deposit s Rupees Percentag in '00 e % 0 2,724,55 0.3 16,330,51 1.9 5 3 0.2 62,137,01 6 0.0 9 193,03 6 144,76 0.0 4 2 0.0 572,09 2 852,64 0.1 8 1 166,69 0.0 8 0 860,03 0.1 3 2 84,170,09 12.6 4 0 6 6,212,11 4 0.7 4,252,29 0.5 9 5 6,671,15 0.8 5 1 0.0 6 569,52 0 54,559,08 6.5 8 7 0.0 5 475,86 6 2,707,18 0.3 2 6 5,214,97 0.6 7 3 0 3 48,345,13 5.8 33,665,80 4.0 9 1 12,575,13 1.5 0 5 340,352,7 40.9 6 1 32,607,55 70 0 3.9 176,273,9 21.1 8 2 832,134,0 100.0 19 8 54 0 200 9 Deposit s (Restated ) Rupees Percentag in '00 e % 0 4,383,46 0.6 2 0 16,595,35 2.2 31,852,28 8 0.2 6 111,72 5 0.0 0 2 247,44 0.0 595,29 3 0.0 6 1 570,62 0.0 9 8 168,71 0.0 2 2 2,382,75 0.3 3 3 92,181,66 12.6 12,733,41 7 0.3 8 8 3,284,01 0.4 1 5 4,841,19 0.6 0 382,87 7 0.0 8 5 35,296,24 4.8 2 287,70 5 0.0 6 4 3,107,76 0.4 4 3 2,143,02 0.2 22,152,84 3.0 2 9 6 5 24,265,87 3.3 9 4 11,362,61 1.5 3 6 322,648,5 44.3 69 5 2.3 16,907,84 1 2 159,509,7 21.9 17 3 727,513,0 100.0 13 0
Contingencies &Commitment s Rupees Percentag in '00 e % 0 2,537,99 1. 1 0. 3 257,33 1 1 7,817,95 3.4 7 1 2,838,91 1.2 0 0 66,86 0.0 0 4 0 36,00 0.0 101,34 0.0 0 0 198,07 0.0 4 4 13,827,34 6.0 7 9 4,32 0.0 7 2 3,605,13 1.5 3 0 942,57 0.4 3 7 2,609,89 1.1 2 1 32,519,88 14.1 2 4 7 10,48 60.0 1,241,29 0.5 0 0 9,328,65 4.0 1 4 0 6 5,319,97 2.3 0.2 3 619,47 2 15,492,88 6.7 3 7 2.1 14,891,68 5 101,102,4 44.0 0 3 24,297,45 10.5 06 3 229,637,9 100.0 5 8 14 0 Contingencies &Commitment s Rupees Percentag in '00 e % 0 883,28 0.3 9 8 181,66 0.0 8 8 5,671,85 2.4 2 6 3,091,33 1.3 3 2,57 4 0.0 0 021,60 0.0 0 1 77,70 0.0 4 3 349,28 0.1 4 5 13,069,43 5.6 6 8 2,75 0.0 5 0 2,028,62 0.8 4 8 3,697,64 1.6 7 1 2,964,33 1.2 8 9 27,949,96 8.1 8 152,67 4 0.0 7 7 2,624,87 1.1 9 4 3,758,00 1.6 4,291,98 1.8 2 3 7 682,96 6 0.3 0 0 6,154,78 2.6 6 7 5,685,09 2.4 0 7 1,979,52 0.8 3 6 144,849,2 62.9 25 3 230,171,1 100.0 97 0
Percentag e % 0.6 0 4.4 2 13.5 21.6 8 1.6 8 0.1 4 1.5 3 0.1 6 0.6 9 2.3 93.4 7 1.4 9 1.3 7 16.2 20.3 1 2.7 2 3.1 1.2 2 2 2.6 9 13.5 2 15.7 83.4 7 7.8 3 100.0 0
Chemical and pharmaceuticals Agricultur e Textil e Cemen t Suga r Flour Rice processing Shoes & leather garments and transportation Automobile equipment Financia l Insuranc e Transportatio n Real estate construction Electronics and electrical appliance and transmission of Production energy Food and tobacco Fertilizer Metal Telecommunicatio products n Hotel and services Public sector commodity operations Individual s General traders Other s 41.1.10.2 Segment by sector
Public/ Government Privat e
Public/ Government Privat e
201 0 Contingencies Deposit & s Percen Rupee t % sin '000 24.8 329,822,4 1 17 75.1 502,311,6 9 37 100.0 832,134,0 0 54 200 9 Deposit s (Restated ) Percen Rupee t % sin '000 29.2 268,065,0 4 35 70.7 459,447,9 6 78 100.0 727,513,0 0 13
Percen t % 39.6 4 60.3 6 100.0 0
Commitment s Rupee sin '000 163,647,7 835,990,13 6 229,637,9 1 14 Contingencies &Commitment s Rupee sin '000 173,094,9 32 57,076,26 5 230,171,1 97
Percen t % 71.2 6 28.7 4 100.0 0
Percen t % 36.8 5 63.1 5 100.0 0
Percen t % 75.2 0 24.8 0 100.0 0
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41.1.10.3

Details of non-performing advances and specific provisions by class of business segment 2009 Specific Classified Specific Provisions Advances Provisions Held Held -------------------------------- Rupees in '000 -------------------------------Classified Advances Chemical and pharmaceuticals Agribusiness Textile Cement Sugar Flour Rice processing Shoes & leather garments Automobile and transportation equipment Financial Transportation/Karobar Real estate construction Electronics and electrical appliances Production & Transmission of Energy Fertilizer Metal products Food and tobacco Hotel and services Telecommunications Individuals General traders Others 2,441,160 1,873,395 26,432,192 5,059,717 3,200,306 244,968 1,875,295 429,807 1,354,447 1,410,483 2,176,995 2,255,065 332,040 11,607,222 1,238,095 2,697,674 565,145 447,913 1,142,498 2,884,481 5,385,614 11,581,804 86,871,353 2,272,721 1,054,027 21,267,263 4,612,161 2,649,031 191,749 1,514,164 423,583 1,209,634 564,124 1,810,487 952,419 285,549 1,464,294 1,117,937 138,795 530,780 131,829 142,000 1,761,335 4,523,526 9,618,889 57,478,191 1,826,039 2,219,527 24,952,031 5,125,240 2,831,761 243,413 1,869,188 215,215 892,961 529,021 2,291,111 908,204 2,426,504 1,685,132 1,291,534 379,901 455,659 787,130 1,106,197 3,013,421 5,611,600 10,336,539 71,174,034 1,685,121 846,133 21,146,885 3,798,340 1,818,357 171,952 1,655,499 210,081 868,440 286,242 1,727,097 493,835 1,812,932 1,452,565 1,122,445 215,508 419,855 367,499 107,951 1,466,663 4,325,066 8,561,598 53,750,154 2010
41.1.10.4
Details of non-performing advances and specific provisions by sector Public/ Government Private 16,782,757 70,088,596 86,871,353 614,274 56,863,917 57,478,191 3,761,716 67,412,318 71,174,034 1,123,449 52,626,705 53,750,154
41.1.10.5
Geographical Segment Analysis 2010 Profit before Total assets Net assets Contingencies & taxation employed employed commitments ------------------------------- Rupees in '000 ------------------------------Pakistan Asia Pacific (including South Asia) Europe United States of America Middle East 23,034,452 415,881 (125,608) 265,681 1,031,881 24,622,287 909,553,785 48,174,799 14,862,146 21,033,619 44,394,118 1,038,018,467 113,667,724 10,049,972 4,208,356 2,142,935 1,229,845 131,298,832 206,901,499 8,462,795 5,768,015 7,326,269 1,179,336 229,637,914
Pakistan Asia Pacific (including South Asia) Europe United States of America Middle East
2009 Profit before Total assets Net assets taxation employed employed (Restated) (Restated) (Restated) ------------------------------- Rupees in '000 ------------------------------19,438,543 806,312,997 106,523,614 717,573 40,438,950 8,349,848 (36,523) 18,950,817 3,161,343 290,501 21,943,052 1,857,961 788,748 58,607,453 899,787 21,198,842 946,253,269 120,792,552
Contingencies & commitments
213,560,716 8,285,996 3,520,929 4,744,619 58,937 230,171,197
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41.2 Operational Risk
Operational Risk is the risk of loss resulting from inadequate or failed internal processes, people and system or from external events. The bank seeks to ensure that key operational risk are managed in a timely and effective manner a framework of policies, procedures and tools to identify, assess, monitor, control and report such through risks. The key objectives of operational Risk measurement and management include: In compliance with the Risk Management Guidelines, issued by SBP, an Operational Risk Management Wing has established within Risk Management Function (RMD). The unit has been strengthened by recruiting been skilled resources for Operational Risk Management and imparting adequate trainings to the existing resources. An Operational Loss Database, Risk & Control Self Assessment (RCSA) exercise and Key Risk Indicators (KRIs) are being developed and will subsequently be implemented. For the identification and assessment of operational risk across the bank, the bank has decided to adopt the risk assessment methodology known as Risk and Control self Assessment (RCSA). The development phase of the RCSA exercise is currently in the initial stages. The function of RCSA will be primarily responsible for maintaining/updating the operational risk management framework and coordinating with the business and supportfor operational risk profiling. Where required/ applicable, the function will work with the support groups and involvement of the respective business and other groups/ functions/ functions and will coordinate with them in this regard. Key risk Indicators are parts of RCSA exercise as KRIs are developed against the risks which are identified during RCSA. 41.3 Market & Liquidity Risk Market Risk is the risk that the value of on and off-balance sheet positions of a financial institution will be adversely movements in market factors such as interest rates, foreign exchange rates, equity prices, affected by and commodity prices resulting in loss of earnings and capital. Market risk includes Price risk and Liquidity exposures. Price and liquidity Risks are closely inter linked to other Risks. The objective of Market Risk Management is to identify measure, monitor and manage the banks portfolio in order to manage/reduce losses due to market volatility in financial inherent instruments. Market Risk Management Policy approved by Board covers equity trading, foreign exchange, money market, Assets Management & Liquidity Risk. Banks Assets Liability Committee (ALCO) and Credit Committee Liability approve exposure limits and these limits are implemented by respective business units. Market Risk Wing different monitors Market Risk Exposure and Market Risk activities on day to day basis. Currently Market Risk is focusing on monitoring Net Open Positions, Interest Rate Risk, Revaluation Limits, Marked to Market Limit, Contract Limit, Settlement Limit, Money Market Call Limit, Money Market Reverse Repo Limit, Foreign Currency wise Exposure and Gap Limit. 41.3.1 Foreign Exchange 201 Risk
Assets 0 Liabilitie s Offbalance sheet items Net foreign currenc y exposur
e ------------------------------- Rupees in '000 ------------------------------Pakistan Rupee United States Dollar Britain Great Pound Japanese Yen Eur o Other currencies 885,397,46 2 86,841,22 0 8,611,20 0 12,421,57 1 13,818,77 7 30,928,23 7 152,621,00 5 1,038,018,46 7 752,428,88 1 103,188,62 4 8,718,34 9 16,630,90 7 11,834,99 7 13,917,87 7 154,290,75 4 906,719,63 5 (31,340,714 ) 19,578,55 2 4,198,88 4 4,504,21 9 3,050,34 8,71 4 31,340,71 4 5 101,628,86 7 3,231,14 8 4,091,73 5 294,88 3 5,034,12 5 17,019,07 4 29,670,96 5 131,299,83 2
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199
0 -----------------------------------------------------------------------------------------------------------------
matching/re-pricing maturity limits, 75,378,14 40,471,18 5,621,99 27,436,38 8,006,63 242,004,6 movement 1,14 of a of the 2009 Non- instrument 0 3 4 1 1 as 1 - - - Net -foreign 1 interest financia bearin Assets s Liabilities Off-balance of duration risk (ALCO) 40, g l (Restated) (Restated) sheet items currency various 1 rate exposure Committee mark-up (Restated) the 4,303,18 4,303,18 groups enabling the management to monitor the impact of interest rate movements on the 4,303,18 consolidated as ------------------------------- Rupees in '000 -------------------------------statement of financial posi 6 6 6 on such into dependent ears Abov - - liabilities e Pakistan Rupee 883,145,489 772,544,781 (22,841,535) 87,759,173 Y interest / by Liabilities limits 10 risk 385,249,6 United States Dollar 1,539,931 339,218 1,200,713 17,346,44 5,155,19 curbing 52 this 6 1 and Great Britain Pound 8,044,282 11,153,165 3,691,113 582,230 Over ears - - - - - to to manages margin assets is exposed Japanese Yen 8,980,502 8,929,229 (75,391) (24,118) 5 10 and Y Euro 15,111,196 20,044,079 19,225,813 14,292,930 risk Assets interest rate-sensitive 29,431,869 Other currencies 12,450,245 16,981,624 26,838,07 500,00 23,388,61 23,388,61 3,449,46 various fects on the profitability of the bank. 63,107,780 52,915,936 22,841,535 33,033,379 6 6 0 6 0 Over ears is bank - - bank 3 to The 5 Y monitoring 946,253,269 825,460,717 120,792,552 The net The frequently 339,359,3 . 12,545,01 period. or manages the interest rate risk 7,450,95 objective of limiting the potential adverse ef with the income interest rates. bank monitors andtion. 99 1 2 Over - - - - - interest rates. to manage currency risk exposure the bank enters into ready, spot, forward and swap transactions In order re-priced interest 3 Y given and withSBP and inestablishing the the inter bank the 23,569,26 4,520,13 4,560,80 19,008,46 19,008,46 classifies market. 40,67 0 3 6 0 a 3 mark-up banks foreign exchange exposure comprises - of forward 6 - 2 0 1 Over ears 0 to contracts, purchases of foreign bills, / inThe net 1 price are foreign currencies cash in hand, balances with banks abroad, foreign placements with SBP and foreign currencies 2 Y liabilities Bank's assets and liabilities. The net statement is managed within the statutory limits, as fixed by the SBP. Counteropen position includes 304,915,9 re187,30 2,835,91 631,01 58,042,55 853,96 parties Months to limits market are also fixed to limit risk concentration. Appropriate segregation of duties exist between the front, 03 5 4 / or 4 7 4 1 Over - - middle office functions while compliance with the net open position limit is -independently monitored on and back The mature ear 6 management and banks. an ongoing Y This assets the basis. 153,681,0 41,842,35 109,870,0 15,923,29 1,435,14 41.3.2that 10,421,04 management basis. in Equity Position changes 54 08 15,9 1 0 5 0 in 0 Over Month Risk liabilities 6 1 3 to s its Investments in equity are generally regarded as riskier relative to fixed income securities owing to the monthly 6 as inherent of stock market prices. The risk from various factors that include, but are not limited volatility risk risk 99,620,55 38,734,23 6,135,89 80,025,28149,859,4 47,847,42 323,378,5 26,041,95 8,588,45 160,327,0 9,591,70 3,959,75 2,290,96 to: to and ield / Interest 86 85 2 1 rate 0 2 5 7 6 8 7 due - interest/mark-up rate Changes in business cycle affecting the business0of the80 Month company in which the investment is made. risk Over fluctuate to s assets Change Interest a risk 1fundamentals) of the company, its business sector, industry and in business circumstances (i.e. 3 prepared market on
(252,849,31 based general. dates. 31,487,21 13,463,51 19,136,04 233,804,9 475,003,8 5) 40 02 7 sensitivity limits. 1,28 interest rate 4 will - Liabilities Assets interest/mark-up duration gap limits and Mont third9party liability whether through class action or otherwise and Mismanagement of the investee company, components 4 Exposed instrument Upto Y of to as 1 h or occurrence of other events such strikes, fraud, etc. in the company in which investment is re-pricing statement is
Currency risk arises where the value of a financial instrument changes due to changes in foreign exchange to ears ----------------------------------------------------------------------------------------------------------------- Rupees in '00
2
/or economy in
to activity, exposed and demand of shares and liquidity in the supply 301,072,6 40,471,18 30,743,36 23,095,79 98,499,56 60,773,31 15,657,02 479,027,7 8,006,63 6,135,89 165,408,7 financial market. 27 77 1 1 10 4 1 6 6 5 sensitivity participant or failure 7 6the 46 critical - excessively or The possibility of defaults by of stock exchanges, the depositories, the ota Mismatch of Interestclearing system is discharging their fiduciary flows settlement Sensitive or the Rate l T 1 responsibilities. of amount the a cash Any government or court order Effectiv restraining payment 12.30 of dividend by0.00 13.10 to its a8.60 company of Interes 0.20 1.90 0.00 value of e ield rate % t %% shareholders. rate %%% % one / ield / Interest Risk Sensitivity interest the Y The bank mitigates the aforesaid risk as Gap not 1 the Off-balance sheet financial On-balance sheet financial the follows: is mismatches ield / Interest Risk Sensitivity in instruments risk instruments and balances Cash Gap in is Through diversification and capping maximum exposure inwith treasury sector/company. that - bank a single banks gaps Lending to financial institutions rate an Additionallyfollow up of these sectors and companies through self monitoring and fundamentals continuous reporting, net risk The research from interest mismatchesreputable brokerage or the liabilities. houses. Balances with other and banks is On-balance employing Compliance with SECP Corporate Governance Rules by the investee company besidessheet Management risk gap of Sub-ordinated prudent rates risk investing practices (focus on dividend payout loans rate and history). Advances Other of Interest The bank will refrain from speculative trading and the investment will be made as per the guidelines Cumulativ interest net liabilities part of- assets result 41.3.3
on liquidity and growth as per investment policy manual or set byLiabilitie the Board of s Asset As Directors. ota s l The bank follows a delivery versus payment settlement system thereby minimizing risk available in relation to settlement risk.
e
1 made. Fluctuation in the shares prices resulting from their dependence on market sentiment, speculative
200

Non-interest instruments financial bearing
---------------------------------------------------------------------------------------------------Notes to the Consolidated Financial Statements ------------(91,439,388) 266,873,462 79,079,371 59,915,027 10,621,169 42,455,768 32,369,059 4,070,616 175,434,073 213,796,525 0 0 - - - 19,894,366 16,101,067 35,995,433 Above ears Y 10 Over 5 ears to 10 Y 13,184,515 48,301,718 17,203 - - 35,1 - 766,883 47,534,835 766,883 - - 281,293,420 47,534,835 - - 35,985,612 9,821 9,821 - - - (91,439,388) 225,839,644 317,279,032 35,985,612 -
233,758,585 55,749,401 10,313,071 53,829,524 64,142,595 57,602,153 8,392,160 8,393,194 1,852,752 1,852,752 1,034 ----------------------------------------------------------------------------------------------------------------Over 3 - - - ears to 5 Rupees in '00 Y 29,663,448 33,400,996 3,737,548 Over 2 ield / Interest risk ears to 3 Y 2 0 0 9 (Restated) Over ears 1 to 2 Exposed to Y Y Months to 1 Over 6 ear Y Over Months 3 to 6 - - 176,156,432 31,704,639 33,262,146 1,686,453 1,696,357 1,557,507 1,557,507 2,069 7,835 - -
142,894,286 30,007,513 37,128,260 8,217,846 9,803,060 1,557,507 1,557,507 28,882,707 1,570,828 27,325,200 14,386 1,60019,147 - 7,1 45,603,794 78,084,782 55,264,253 69,609,675 55,447,855 778,752 867,632 70,477,307 1,368,954 125,057,530 175,334 88,880 1,579 8,268 14,01 1 46,609,207 75,644,502 36,566,731 83,231,444 3,688,26092,820,752 43,534,272 2,856,320 127,096,531 7,292,814 43,865,087 389,377 9,589,308 1,980,906 1,671 5,542 5,596 5,51 (49,286,480) 27,288,492 69,448,579 52,563,652 66,227,550 39,283,879 15,215,508 16,848,820 9,314,702 7,432,536 121,494,040 2,698,619 55,266,490 389,377 48,987,958 475,613 4,219 -
Over Months 1 to 3
Upto 1 Month
1 (164,501,988) 356,895,707 (233,401,744) 25,565,502 (164,501,988) 87,441,821 20,734,727 13,056,371 149,936,764 26,440,422 383,338,508 42,944,877 17,227,007 1,476,838 389,377 68,899,756 2,379 1 217,596,037 475,338,439 727,513,013 92,527,224 38,568,464 16,668,514 59,915,027 10,621,169 42,455,768 6,914,649 133,312,420 28,786,397 917,987,940 44,828,138 825,460,717 87,829,307 225,839,644 19,683,526 42,629
otal T Effective Interest ield / rate Y
Liabilities against assets subject to finance lease ield / Interest Risk Sensitivity Gap 0.00% 0.00% 5.60% 0.00% 14.99% 0.00% 12.79% Off-balance sheet financial instruments On-balance sheet10.38% instruments6.80% 17.10% financial 0.44% 4.09% ield / Interest Risk Sensitivity Gap Cash and balances with treasury banks Forward purchase of foreign exchange 1 Lending to financial institutions - net Forward sale of foreign exchange
Balances with other banks
Deposits and other accounts Off-balance sheet gap On-balance sheet gap Cross currency Sub-ordinated loansswaps Cumulative Y Y otal T
Investments - net Advances - net Other Other assets Bills payable liabilities Borrowings Liabilities Assets
201

liquidity
19,993,28646,360,658 21,676,782 45,280,566 4,128,036 1,080,092 1,080,092 demand our or - - - - - - - losses ears Above on unacceptableperformed Y with 10 on either assets 18,082,045429,183 39,979,93664,434,438 63,354,346 5,341,969 1,080,092 1,080,092 601,305 withdrawals - - - - - - manages Over 5 is ears to 10 testing ---------------------------------------------------------------------------incurring Y in mind and monitors liquidity on daily basis. In addition, the bank maintains statutory deposits with central banks inside and Stress 10,541,214287,377 2,949,460 2,161,532 59,276,51072,388,045 6,503,863 1,614,855 60,773,191 sources, 671,661 1,282 deposit , withoutto repay borrowings as they mature- and to make new- loans- and investments as opportunities arise. responsibility Over 3
funded
meet conditions
ears to 5 Y
1,61
1 33,788,2311,220,651 33,827,61869,475,076 4,816,868 5,919,028 63,556,048 1,080,092 638,576 22,068 - - - -
diversified to ability outside Pakistan. this stressed execute Bank's arranged includes and to gaps, normal has management This liquidity expansion. both under risk, this limit o T due. fall they when liability its meet to unable be will Group monitors
Over 2 ears to 3 Y ---------------------------------------------------------------------------------------------- Rupees in '000 ----------------36,367,52020,609,647 14,510,798 70,152,037 2,684,955 353,703 29,388,56689,414,086 4,710,578 19,262,049 40,673 9,695 - -
Over 1 ears to 2 Y 2010
due, business and when liquidity liabilities opportunities for adequate our of has all on capitalize branch meet to flow to cash as well ficient the that ensuring
Over 6 ear Y
27,078,415952,925 853,964 519,961 47,006,178 277,314 94,674,131123,972,01 75,564,33176,965,833 789,467 Months to 1 198,783 27,576 977 1 -
Months Over 3 to 6
29
67,204,6566,726,996 1,958,271 4,290,245 30,583,781105,950,602 45,367,20251,626,138 54,324,464 1,435,140 10,420 - -
Months Over 1 to 3
105,383,002 71,508,7201,141,021 2,290,967 877,564 51,774,45554,947,670 8,594,636 55,534,843160,330,672 9,591,700 3,959,752 4,683 - 1 106,853,881 643,396,756 (378,539,669) 684,409,495 19,085,510 19,136,044 12,651,525 1,649,169 21,338,946 32,373,791 305,869,826 15,769,075 8,006,631 17,993 - 1
Upto 1 Month
franchises, as suf ensure responsible for requirements. to business management is
301,078,498 1,038,018,467 832,134,054 906,719,635 67,077,285 30,743,36827,620,697 8,006,631 123,413 131,298,832 498,076 23,051,1716,954,228 54,026,725 19,657,20746,798,33013,454,62824,809,030 25,451,144131,290,163 15,657,025478,886,755 otal Liabilities against assets subject to finance lease
liquidity processes in line with SBP T 1 Assets and Liabilities
Cash and balances with treasury banks Lending to financial institutions - net Surplus on revaluation of assets Balances with other banks Deferred tax assets - net Operating fixed assets Sub-ordinated loans Unappropriated profit Investments - net Minority Interest Advances - net Other liabilities Share capital Other assets payable Bills Borrowings Net assets Liabilities Reserves Assets Deposits and other accounts
the that risk sustained Liquidity Risk the of reasury purpose is risk Liquidity risking T The The 41.4
is Group or our at contractual maturity Management to damage liquidity Maturities of
41.4.1
202

Above ears Y 10 Over 5 ears to 10

----------------------------------------------------------------------------23,075,91 7,247,00 16,101,06 67,690,52 21,266,55 59,477,04 1,570,82 8,213,48 6,642,65 0 7 1 0 8 8 7 5 3 - - - - -
13,184,51 2,750,00 52,917,24 1,208,07 657,45652,917,24 6 17,203 0 8 8 3 - - - - - - - - 35,1 Y ---------------------------------------------------------------------------------------------- Rupees in '000 ----------------10,471,28 1,448,24 53,829,52 68,866,45 50,523,24 50,524,27 18,342,18 1,261,02 1,856,38 1,034 1 4 0 6 3 4 0 4 0 - - - - 29,663,44 51,740,06 51,729,78 2,015,84 1,331,95 8,728,82 2,069 7,83510,280 376 6 0 6 5 8 3 - - 1 12,916,77 15,084,28 30,007,51 58,010,16 8,217,84 13,063,90 19,338,48 40,634,62 17,375,54 14,386 1,6004 3 0 7 8 5 2 6 5 - 136,344,95 61,070,25 745,578 78,084,78 141,269,56175,334 1,368,95 4,741,01 4,924,61 8,2685 0 5 1 2 4 3 - -
Over ears 3 to 5 Y Over ears 2 to 3 Y Over ears 1 to 2 Y 2 0 0 9 (Restated) Months to 1 Over 6 ear Y
Over Months 3 to 6
46,609,20 3,729,60 75,644,50 130,820,567,292,81 4,068,07 60,449,46 71,815,88 59,004,67 2,856,32 1,980,90 5,5429 8 29 0 6 6 2 4 7 4 0 3 - 120,128,28 16,848,82 69,448,57 132,221,742,698,61 27,459,30 10,556,89 7,432,53 9,390,62 12,093,46 475,613 4,2194 0 0 6 6 9 0 4 9 6 - 581,498,98 (394,527,155) 637,244,08 99,819,66 87,441,82 242,716,9326,440,42 18,681,13 17,126,98 17,227,00 9,624,61 10,621,16 1,476,83 2,3795 0 5 7 7 8 1 9 2 5 0 2 - 1 727,513,01 120,792,55 825,460,71 61,696,59 217,596,03 946,253,2644,828,13 42,455,7610,763,70 24,826,26 23,395,05 120,792,55 28,786,39 25,200,87 19,683,52 3,064,45 59,915,02 10,621,16 16,668,51 475,338,43 42,629 2 2 9 4 10,930 Liabilities against assets subject to finance 8 7 7 2 9 8 3 4 7 6 7 9 0 9 7 9 - lease 1 1 Cash and balances with treasury banks Lending to financial institutions net Surplus on revaluation of assets net
Over Months 1 to 3
Upto 1 Month
otal T
Deposits and other accounts Balances with other Deferred tax assets - net banks Operating fixed assets Unappropriated Sub-ordinated profit loans Investments - net Minority Interest Advances - net Other Share Other assets Bills liabilities assets Net capital LiabilitieBorrowings payable Reserves s Assets
203

42.
SUBSEQUENT EVENT The Board of Directors has proposed a cash dividend of Rs. 7.5 per share (2009: Rs. 7.5 per share) amounting to Rs. 10,091 million (2009: Rs. 8,073 million) and bonus shares in the proportion of 25 ordinary shares (2009: 25) per 100 ordinary shares held amounting to Rs. 3,364 million (2009: Rs. 2,691 million) at its meeting held on March 01, 2011 for approval of the members at the annual general meeting to be held on March 30, 2011. These financial statements do not reflect this appropriation as explained in note 5.17.
43.
GENERAL 43.1 Figures have been rounded off to the nearest thousand rupees.
44.
DATE OF AUTHORIZATION FOR ISSUE The financial statements were authorized for issue on March 01, 2011 by the Board of Directors of the bank.
Director
Director
Director
204

Referred to in Note 9.12 to the financial statements Annexure 'I'
Detail of Investments As at December 31, 2010 1. Government Compensation 1 Bonds
Terms of Redemption Principa l July 1, 2010
Interes t Annuall y
Rate of Interest
Govt. Bond (Public Sector Enterprises) 1. 2 1.2. 1
9%
Cos t 201 0 --------Rupees in '000'--------
200 9 1,132,9 63 1,132,9 63
Particulars of investments held in listed companies and modarabas Ordinary shares JCRVI S Investe e Held-fortrading Arif Habib Bank Limited Securities Arif Habib LimitedRefinery Attock LimitedPetroleum Attock Limited Hercules Chemical Dawood Limited D G Khan CementQasim Ffc Bin Limited Habib Bank Limited Ici Pakistan Limited Lucky Cement Limited Mcb Bank Limited Textile Mills Masood LimitedMills Nishat Limited Refinery National Limited O.G.D. C Pakistan Oilfields Petroluem Pakistan Limited Pakistan State Oil P.T.C. L United Bank Limited
PACR A
No. of shares held 201 0
200 9
Market Value 201 200 0 9 --------Rupees in '000'-------34,28 7 16,72 6 4,95 9 30,17 0 23,13 7 36,58 2 9,07 5 26,83 3 22,85 4 13,18 7 58,84 4 33,50 0 1,23 2 37 0 73,86 2 7,43 6 45,64 6 8,76 8 170,81 4
A Unrate d Unrate d Unrate d Unrate d Unrate d Unrate d AA + Unrate d Unrate d Unrate d Unrate d Unrate d Unrate d AA A Unrate d Unrate d Unrate d Unrate d AA +
Unrate d Unrate d AA/A1 + Unrate d Unrate d Unrate d Unrate d Unrate d Unrate d Unrate d AA+/A1 + Unrate dA+/A 1 AAA/A1 + Unrate d Unrate d Unrate d AA+/A1 + Unrate d Unrate d
275,00 050,00 0 25,00 0 1,000,0 00 647,56 1 300,00 062,91 6 354,03 8 100,00 0 205,50 0 214,92 4 212,50 0 345,68 0 425,00 0 -
5,000,0 00 25,00 0
9,99 5 667,77 0 25,00 0 2,586,2 00150,00 0
62,89 2 75,06 4 125,45 2 540,06 1
Available-ForSale
JCRVI S
PACR A
No. of shares held 201 0 1,267,4 62233,40 030,08 0 768,94 2 137,59 769,09 3 47,69 6 32,77 8 617,04 7 11,499,0 00 727,28 5 583,57 0 183,26 5 30,90 0 31,51 4 163,46 4 2 1,304,4 5 06 10,11 1
200 9 1,234,9 63227,50 229,32 2 225,00 0 134,05 867,40 8 46,47 3 31,93 5 647,80 1 453,21 3 708,63 7 473,83 9 513,63 0 178,63 1 459,21 4 391,33 930,90 0 30,67 1 159,25 1 2 4 942,15 4 1,140,3 55 1,006,8 63 10,11 1
Market 201 Value 200 0 9 --------Rupees in '000-------139,09 1 16 3 67,28 2 47,01 9 274,82 6 69,01 9 19,59 6 27 5 7,01 4 2 91,50 4 5 715,79 6 149,70 2 5 927,74 3 39,03 0 6,80 3 67,67 5 15,10 1 1,44 8 30 4 1,41 9 2,70 0 7,35 5 2 55,33 3 30,21 9 2,92 0 50 6 408,31 9
Abbott Laboratories Limited Textile Mills Accord Limited Floorings Adamjee Limited Insurance Company Adamjee Limited Papers & Board Mills Adamjee Limited Adil Polypropylene Limited Adil Textile Mills Limited Afsar Textile Mills Limited Industries Agriauto Limited Agritec Limited Hassan Textile Ahmed Limited Sugar Mills Al Abbas Limited Silk Mills Al Abid Limited Modaraba Al Noor 1St Al Qaim Textile Mills Al Zamin Leasing Mod. Al-Abbas Cement Industries Limited Tractors Al-Ghazi Limited Al-Hussany Industries Limited Alif Textile Mills Limited Allawasaya Textile & Finishing Mills Limited Allied Bank Limited Sugar Mills Al-Noor Limited Leasing Corporation Al-Zamin Limited Textile Amazai Limited Carried Balance Forward
Unrate d Unrate d Unrate d Unrate d Unrate d Unrate d Unrate d Unrate d Unrate d Unrate d Unrate d Unrate d Unrate d Unrate d Unrate d Unrate d Unrate d Unrate d Unrate d Unrate d Unrate d Unrate dBBB + Unrate d Unrate d
Unrate d Unrate d Unrate d A A Unrate d Unrate d Unrate d Unrate d Unrate d SD Unrate d A/A 1 Unrate d Unrate d Unrate d Unrate d Unrate d Unrate d Unrate d Unrate d Unrate d AA/A1 + Unrate d Unrate d Unrate d
206
205
JCRVIS JCRVIS PACRA No. of shares held 2010 2010 2009 2010 2010 2009 --------Rupees in '000-------715,796 325,711 93,849 7,292 1,135 912 3,362 68,280 3,208 181 1,456 36,160 210,200 -28,553 1,154 278,526 399,849 8,048 5,089 24,296 6,974 473 478 12,360 1,874 915,837 72 12,974 -2,557 542 34,223380,346 7,247 46,970 1,302 296 597,105 81,863 89,291 150,459 Unrated Unrated Unrated A/A1 Unrated Unrated Unrated 44 1,338,795 17,864 7673,223 17,952 802,056 6,220,417 3,066,707 921,451 26,963 990 2,756,988 3,814,618 4,634 260,824 6,333,598 3 21,486 50,000 1,295 1,235 193,108 --909 -146,776 372,292 29,134 33,744 - 36,503 13,466 36 50,616 79,487 - 3,171,053 8,587,693 1,529 147 5,828,953 408,319 12,586 3,790 36,347 2,165 1,287 1,598 109,808 284 19,415 1,135 212,036 9,318 7,463 1 28,638 10,065 58,535 522 -
Balance Brought Forward Balance Brought Unrated Forward Amtex Limited Unrated Unrated Apex Fabrics Limited Unrated First Dawood Investm ent Bank Arag Industries Limited Unrated Unrated Arif Habib Bank Limited A First Equity Modarba Arif Habib Investments Limited Unrated Unrated Arif Habib Limited Unrated First National Equities Limited A rif H ab ib C o rp L im ite d (A rif H a b ib S e cu ritieUnrated s Unrated Aruj Garment Accessories Limited L im ite d ) Unrated Gadoon Textile M ills Limited Asim Textile Mills Limited Unrated Unrated Askari Commercial Bank Limited Unrated GhafoorLeasing Mills Askari Textile Limited Unrated Unrated Aslo Electronics Limited Unrated Ghandhara Nissan Lim ited Aswan Tantage Limited Unrated AGhani Glass Limited Unrated Gharibwal Cem ent Atlas Honda Limited Ghulam M.Dadabhoy ( Dadabhoy Padube ) Unrated Unrated Attock Petroleum Limited Globe Textile Mills Unrated Unrated Awan Textile Mills Limited Greaves Aircondition Unrated Unrated Azam Textile Mills Limited Gulistan Spinning Mills Unrated Unrated B.F Unrated Gulshan Spinning Mills Unrated Unrated Bahawalpur Textile H.Shaikh Muham med Hussain Limited Unrated Unrated Balochistan Glass Limited Habib Bank Limited Unrated Unrated Baluchistan Foundry (Tower) Habib Metropolitan Bank Unrated AAUnrated Habib Sugar Limited Bank Alfalah Unrated Unrated Haji Moham mad LimitedMills Limited Bankers Equity Ism ail (B.E.L.) Unrated Unrated Hakkim Textile Mills Limited Bankislami Pakistan Unrated Unrated HarumPakistan Limited Bata Textile Unrated Unrated HighnoonSugar Mills Limited Bawany Laboratories Unrated Unrated Honda Atlas Car Bela Engineers Unrated Limited Unrated Huffaz Seamless Pipe Ind. Blessed Textiles Limited Unrated Unrated Hyderabad Electronic Bolan Casting Limited Unrated Unrated I.C.C. Textiles Limited Brr Guardian Modaraba Unrated Unrated Byco Petroleum Ibrahim Fibers Pakistan Limted Unrated Unrated Casspak I.D.B.P Industries Limited Unrated Unrated Century Paper & Board Mills Limited Igi Investment Bank Unrated Unrated Charsada Sugar Mills Indus Dyeing & M anuf. Limited Unrated Unrated Cherat Cement Limited Indus Polyester Co. Unrated Unrated Chilya Corrugated Board Inter Asia Leasing Company Limited Limited Unrated Unrated Balance Carried Balance Carried Forward Forward
Unrated Unrated CCC Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated AA/A1+ Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated AA+/A1+ Unrated AA/A1+ Unrated Unrated Unrated Unrated Unrated Unrated Unrated
9,115,897 23,172,472 2,048,345 144,506 96,478 63,932 523,903 129,255 2,626,146 1,331,265 34,541 582,237 1,600,000 11,882,433 20,054 12,485,000 3,158,249 3,207,000 160,985 107,432 174,034 2,515,091 374,355 41,026 84,176 398,550 1,500,000 81 279,701 25,257,506 3,792 1,322,479 1,485,925 1,639,500 190,840 82,154 259,462 42,972 10,166,956 314,929 515,585 727,077 429,055
141,136 1,358,284 94,034 5,424,991 883,876 51,911 121,137 2,228,693 33,656 707,019 567,491 7,766,882 22,834 665,073 19,548 1,335,021 83,839 8,324,952 231,252 1,339,000 72,496 24,435 168,387 32,861 106,168 29,322 308,173 145,029 206,916 497,894 32,440 56,117 293,714 323,377 36,737 25,034,013 790,553 4,113,079 15,013,218 1,594,650 1,692,172 128,075 596,106 28,923 541,333 208,217 48,622 1,980,730 132,288 676,468 27,394 48,871 1,238,222
447 1,086 745 3,983 676 39,918 779,810 22,926 163,988 206,732 2,392 32 3,499 529,965 6,800 100 37,872 14,145 1,084 45,827
Unrated
207

Available-For-Sale JCRVIS PACRA No. of shares held 2010 2009 --------Rupees in '000-------Market Value 2010 2009
Balance Brought Forward International Knit Wear Invest Capital Investment Bank Limited Investec Securities Limited Ishaq Textile Mills Islamic Investment Bank Itti Textile Mills J.A.Textile Mills J.K.Spinning Mills Jahangir Siddiqui Investment Company Javed Omer Vohra & Co Jehangir Siddiqui & Company Limited Johnson & Phillips (Pak.) Limited Js Bank Limited Js Bank Limited Lor Junaid Cotton Mills Limited Kaisar Arts & Krafts Karachi Electric Supply Corporation Karachi Pipes Karam Ceramics Limited Karim Cotton Mills Karim Silk Mills Limited Kasb Bank Kasb Bank (Platinum Bank) Kasb Modaraba Kaytex Mills (Saleem Denim Ind.) Kaytex Mills Kohinoor Mills Limited Khairpur Sugar Mills Limited Khalid Siraj Textile Mills Khursheed Spinning Mills Kohat Cement Limited Kohat Textile Mills Limited Kohinoor ( Cotton ) Textile Kohinoor Energy Limited Kohinoor Industries Kohinoor Looms Limited Kohinoor Mills Limited Kohinoor Power Co. Kohinoor Spinning Mills Kohinoor Sugar Mills Kohinoor Textile Mills Limited Kot Addu Power Company Limited Ksb Pumps Co.Limited Lafarge Pakistan Cement Lafayatte Industries Synth. Leiner Pak.Gelatine Libaas Textile Limited Lucky Cement Limited Maple Leaf Cement Limited Maqbool Textile Mills Mari Gas Company Limited Marr Fabrics Limited Masood Textile Mills Limited Mcb Bank Limited Medi Glass Limited. Meezan Bank Limited Mehar Dastgir Textile Mehmood Textile Mills Mehran Bank Limited. Mehran Jute Limited Merit Packaging Limited Metropolitan Steel Corp ( Restricted ) Mian Mohammad Sugar Mian Textile Industries Limited Balance Carried Forward
Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated BBB+ Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated A+ Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated
Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated AA/A1+ Unrated A Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated A/A1 Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated BB/B Unrated Unrated Unrated Unrated AA+/A1+ Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated
60,716 3,705,680 50,205 71,339 83,418 31,405 859,960 3,241,903 292,675 10,436,696 3,368,056 51,759 868,959 1,869,225 79,710 182,554 56,285 9,690 760 917,520 351,473 82,575 1,208,227 3,088,000 53,900 479,941 2,926,554 31,935 135,351 4,370 86,366 31,795 147,865 366,887 2,054,323 9,732,978 1,004,638 3,927,387 46,765 13,900 250,000 2,250,000 194,819 849,029 1,972,334 60,246 4,593,662 195,489 150,404 6,958 24,856 376,390 61,931 348,637 50,204 87,630 -
59,159 48,918 220,433 69,509 81,311 336,330 161,157 30,955 837,910 898,282 285,170 10,169,093 51,759 868,959 1,821,297 77,603 177,873 54,895 9,690 760 893,995 342,486 80,468 1,208,227 3,088,000 347,818 53,900 476,733 2,926,051 31,092 131,880 166,073 84,681 144,074 299,073 357,480 1,912,082 1,684,539 745,617 10,321,302 45,922 13,544 250,000 1,882,577 1,158,936 827,260 1,404,380 58,729 2,248,426 107,832 146,612 6,627 24,435 56,040 366,784 60,667 339,698 85,945 365,484
9,633,959 540 2,890 496 210 3,440 35,337 2,760 26,927 34 5,253 1,424 2 2,303 580 79 24,550 86 3,100 4,097 2,948 7 94 683 1,864 10,313 395,938 60,519 12,607 207 175 170,528 559 7,302 246,483 91,873 44,677 118 50 8,538 801 10,804,348
8,587,693 887 772 77 676 1,023 445 8,279 27,011 4,466 51,659 4,845 1,601 6 6,607 1,027 5,920 7,720 296 40 3,418 4,711 4,088 332 1,134 452 2,753 14,914 77,270 55,936 22,604 359 313 124,702 4,358 9,927 192,161 83,192 23,689 117 104 5 2,796 6,403 110 9,346,897
208

Available-For-Sale JCRVIS PAC RA

No. of shares held 2010 2009 M arket Value 2010 2009 --------Rupees in '000-------10,804,348 260,530 28,460 21,275 111 324 270 113 4,981 54,747 1,835 396,831 23,194 29,536 311,774 497,820 229,575 136 13,055 33 365 11,609 1,759 46,834 307,142 47,931 67,174 15 139,306 33,809 1,091 47,123 23,100 348,227 7,453 63,526 362,080 70,406 224,166 12,318 361,752 14,856,134 9,346,897 318,192 31,633 20,788 115 1,598 630 381 28 10,887 21,038 1,643 587 351,278 61,122 22,824 21,611 760 83,815 316,447 181,616 381,900 276 276,737 44 178 12,637 2,050 9,133 340,419 7,177 79,869 13 100,131 44,547 40,573 1,494 55,644 3,147 28,341 204,695 6,950 263,841 208,680 2,610 71,854 92,766 11,541 184,354 13,225,491
Balance Brought Forward M illat Tractors Lim ited M irpurkhas Sugar M ills M itchell'S Fruit Farm s M odaraba Al-M ali M oham m ad Farooq Textile M ills M ohib Textile Lim ited M oonlite Pak (Blanket) M orafco Lim ited M ubarik Dairies M ustehkam Cem ent Lim ited M ybank Lim ited Nagina Cotton M ills Lim ited Nakshbandi Industries Lim ited National Asset Leasing Corp. National M atch Ind. National Over. National Refinery Lim ited Natover Lease & Refinance Naveed Textile M ills Nestle Pakistan Lim ited Netsol Technologies Lim ited Nib (Ndlc-Ific Bank )Nib Bank Lim ited Nim ir Resins Lim ited Nishat (C hunian) Lim ited Nishat Chunian Lim ited-Rights Nishat Chunian Power Lim ited Nishat M ills Lim ited Nishat Power Lim ited Noon Sugar M ills Lim ited Norrie Textile M ills Nowshera Engg. W orks Lim ited Nusrat Textile M ills O il And G as Com pany Lim ited O lym pia Spinning & W eaving O lym pia Textile M ills O rix Leasing Pakistan Lim ited O tsuka Pakistan Pace Pakistan Lim ited Package Lim ited Pak Datacom Lim ited Pak Electron Lim ited Pak G hee Lim ited Pak Paper C orporation Pak Suzuki M otors Lim ited Pakistan Cem ent Com pany Lim ited Pakistan Cables Lim ited Pakistan Engineering C om pany Lim ited Pakistan Gum & Chem icals P a k is ta n In te rn a tio n a l A irlin e s C o rp o ra tio n C la s s " International Container Term inal Pakistan Pakistan N ational Shipping C orporation Pakistan O il Fields Lim ited Pakistan Paper Products Lim ited Pakistan Petrolium Lim ited Pakistan Refinery Lim ited Pakistan Reinsurance Com pany Lim ited Pakistan Services Lim ited Pakistan State Oil Pakistan Synthetics P a kistan T e le c o m m un ic tio n C o m p an y Lim ite d Carried Forward Balance
U nrated U nrated U nrated U nrated U nrated U nrated U nrated U nrated U nrated U nrated U nrated U nrated U nrated U nrated U nrated U nrated U nrated U nrated U nrated U nrated U nrated U nrated U nrated A Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated AAA Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated U nrated "A U nrated U nrated U nrated U nrated U nrated U nrated U nrated U nrated U nrated U nrated U nrated
Unrated Unrated Unrated A-/A2 Unrated Unrated Unrated Unrated Unrated Unrated A-/A2 Unrated Unrated Unrated Unrated Unrated AAA/A1+ Unrated Unrated Unrated Unrated AA-/A1+ Unrated AA-/A1+ Unrated AA-/A1+ A+/A1 AA-/A1+ Unrated Unrated Unrated Unrated Unrated Unrated Unrated AA/A1+ Unrated A/A1 AA/A1+ Unrated A/A1 Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated AA+/A1+ Unrated Unrated
521,290 551,541 286,496 73,539 507,080 58,846 29,069 28,227 345,923 19,483,044 113,499 135,050 13,398 12,471 1,449,398 371,674 35,979 7,862,190 1,300,000 19,376,860 7,757,836 14,145,116 11,337 69,557 13,229 156,134 76,421 21,838 182,618 1,689,793 53,619 17,155,335 2,388,163 600,633 4,784,450 29,491 52,831 1,995,222 135,242 49,460 20,851,011 1 608,707 1,176,601 158,144 292,545 3,361,306 418,460 759,421 1,353,626 18,627,814
837,789 407,120 279,151 71,655 923,680 504,973 57,338 28,648 27,806 337,053 4,429,000 113,499 57,304 131,587 13,145 12,218 1,986,643 362,143 35,052 49,056 800,000 4,502,212 258,541 3,953,543 30,723,041 2,598,223 30,000,000 10,067 67,774 12,976 152,174 2,501,913 21,280 177,936 1,651,855 52,244 1,561,171 2,364,022 71,064 4,261,984 29,070 51,567 1,125,576 873,309 135,242 48,193 21,319,520 31,753 603,002 887,008 143,884 1,391,638 1,728,911 100,000 407,730 311,883 1,318,919 10,444,959
209

Available-For-Sale JCRVIS PACRA No. of shares held 2010 2009 --------Rupees in '000-------45,969 150,719 421 397,393 994,301 117,121 301,925 27,405,714 76 184,889 5,674 166,278 173,902 226,070 28,648 55,274 595,224 36,653 1,685 9,686 10,027 402,378 45,501 2 2,775 28,564 13 311,191 816,483 164,692 421 10,043 3,900,069 1,075,363 182,423 151,508 156,642 6,154,267 1,604,838 137,959 426,969 116,932 131,446 75,413 1,582,673 131,446 467,828 1,160,703 227,802 935,011 687,561 842,126 82,575 1,801,895 781,593 45,396 923,782 421 387,203 19,028 880,733 114,172 301,925 1,160,100 74 36,477 401,951 2,930 162,014 169,442 3,288,573 220,340 28,227 53,842 579,962 759,220 36,232 1,685 9,437 172,115 9,774 391,845 44,658 200,053 294,266 105,466 27,890 13 303,213 795,548 160,566 421 10,043 999,073 177,789 157,367 51,961 172,932 145,358 5,996,467 393,810 134,422 528,116 113,935 72,071 113,430 73,728 292,059 322,214 1,542,093 128,497 456,015 1,130,942 221,961 911,037 670,288 835,148 80,890 1,755,693 46,778 1,200,561 Market Value 2010 14,856,134 108 16,614 2,424 10,341 646 185,537 5,232 84 191 1,036 368 358 20 1,556 29,393 206 28,471 4,839 224 783 12,062 9,790 6,352 6,148 16,604 13,277 68 871 28,074 4,852 460 41,945 206 202,144 33 15,280 8,566 15,511,298 2009 13,225,491 141 96,997 1,839 175 10,340 1,482 12,390 1,647 10,250 39 164 25,750 1,015 37,202 11 21 484 1,936 274 5,201 3,025 919 3,332 30,072 183 5,515 79 656 432 579 19,848 6,195 4,886 8,714 16,533 7,928 9,868 140 298 570 2,174 28,433 3,008 641 43,821 322 222,141 57 19,313 372 15,355 13,888,258
Balance Brought Forward Pakistan Telephone Cables Pakistan Tobaco Pan Islamic Steamship Pangrio Sugar Paramount Modaraba (Ist) Paramount Spinning Mills Pearl Fabrics Limited Pervez Ahmed Securities Limited Pioneer Cement Limited Polyron Limited Premier Sugar Mills Premium Textile Prosperity Weaving Mills Limited Mills Prudential Investment Bank Prudential Modaraba (Ist) Pta Pakistan Limited Punjab Building Limited Punjab Cotton Punjab Lamps Punjab Modaraba (Ist) Punjab Oil Mills Limited Qayyum Spinning Quality Steel Works Quetta Textile Mills Ravi Textile Mills Ball Rcd Redco Textile Mills Limited Regal Ceramics Limited Reliance Cotton Spinning Reliance Weaving Mills Resham Textile Mills Limited Rex Baren Battery Rmcpl Ruby Textile Mills Rupali Polyester Limited S.G.Power Sadoon Textile Mills Sahrish Textile Mills Saif Mix Concrete Products Saif Textile Mills Limited Saitex Spinning Mills Sajjad Textile Mills Salfi Textile Mills Sally Textile Mills Salman Noman Enterprises Samba Bank Limited Samin Textile Limited Sana Industries Limited Sanghar Sugar Mills Sanofi - Aventis Pakistan Limited Sapphire Fibers Limited Sapphire Textile Mills Sardar Chemical Ind.Limited Sargodha Spinning Mills Saritow Spinning Mills Saudi Pak Commercial Bank Limited Saudi Pak.Leasing Co. Schon Textiles Mills Searle Pakistan Limited Security Investment Bank Security Leasing Corp. Security Papers Limited Service Fabrics Limited Service Industries Limited Service Textile Mills Shabbir Tiles & Ceramics Shadab Textile Mills Shahmurad Sugar Mills Limited Balance Carried Forward
Unrated Unrated Unrated Unrated BBBUnrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated A Unrated Unrated Unrated Unrated Unrated A Unrated Unrated Unrated ABB+ Unrated BBB+ A BBBUnrated Unrated Unrated Unrated Unrated Unrated BBB+
Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated A-/A2 Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated
210

Available-For-Sale JCRVIS PACRA

Market Value 2010 2009 2010 15,511,298 68 32,744 20,275 26,446 54,070 67,639 644,866 4,744 277 56,953 2,415 16,550 289,618 243 18,387 644,052 307,092 45,344 274 95 283 610 34,897 11,063 285,006 148,952 2,786 211 334 5,374 14 300,212 113 2,326 11,721 55,818 941 124 241,436 173,700 537,300 Unrated 9,708 2009 13,888,258 80 43,580 4,027 29,543 10,537 45,953 53,489 69,202 843,191 93 7,745 194 66,516 2,760 12,920 307,510 5,945 988 17,725 159,524 59,063 4,011 542 11,731 351 100 276 247 13,227 587 88,874 101,959 50,069 518 564 484 6,130 4,044 42 357,583 78,836 190 4,703 17,016 1,778 8 1,089 16,385,995
Balance Brought Forward Shahpur Textile Mills Shahtaj Sugar Mills Shahtaj Textile Mills Shahyar (Oe) Textile Mills Shahyar Textile Mills Shakarganj Mills Shams Textile Mills Shell Gas Lpg Shell Pakistan Limited Shezan International Siemens (Pakistan) Engineering Company Limited Siftaq (International) Textile Mills Silk Bank Limited Sindh Alkalis Limited Sindh Fine Textile Mills Singer Pakistan Limited Sitara Chemicals Industries Limited Sitara Energy Limited Sitara Peroxide Limited Sme Leasing Limited Soneri Bank Limited Soneri Bank Limited-Right Southern Networks Limited Standard Chartered Leasing Limited Standard Chartered Modaraba Sui Northern Gas Pipeline Company Limited Sui Southern Gas Pipeline Company Limited Summit Bank Limited ( Formuly Arif Habib Bank) Sunrays Textile Mills Sunrise Textile Mills Sunshine Cloth Mills Sunshine Cotton Mills Limited Suraj Cotton Mills Limited Suraj Ghee Limited Syed Match Ind. Taga Pakistan Limited Taj Textile Mills Limited Tandlianwala Sugar Limited Tariq Cotton Mills Tata Textile Mills Tawakkal Limited Tawakkal Modaraba (Ist) Tele Card Limited Thall Limited Thatta Cement Co. Limited Treet Corporation Trg Pakistan Tri Star Modaraba (Ist) Tri Star Polyester Tri-Pack Films Turbo Tec Limited (Tubes) Twakkal Garments Industries Limited U.D.L. Modaraba. (Ist) Unicap Modaraba. Unilever (Pakistan) Limited Union Insurance Co.Of Pakistan United Bank Limited United Brands Limited ( Udl Industries ) United Distributors Pak. Unity Modaraba Uqab Breeding Farms Wah Noble Chemicals Limited World Call Communication Worldcall Telecom Yousuf Weaving Mills Zafar Textiles Mills Limited Zeal Pak Cement Limited
Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated AUnrated Unrated Unrated AAUnrated Unrated BBB+ Unrated Unrated Unrated Unrated Unrated Unrated Unrated A Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated AAUnrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated AA+ Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated
Unrated Unrated Unrated Unrated Unrated D Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated AA-/A1+ Unrated Unrated AA-/A1+ AA+/A1+ AA/A1+ AA-/A1+ Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated WD Unrated Unrated A+/A1 Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated A-/A2 Unrated Unrated Unrated
200,641 408,539 40,023 113,161 3,666,302 781,738 259,678 581,538 514,448 54,769 1,810,788 360,212 39,603 445,814 130,517 1,230,477 34,851,736 153,522 85,693 1,975,021 24,085,702 14,336,708 11,901,405 7,668 374,721 498,220 27,384 7,162 48,450 763,513 17,948 21,907 1,056,535 57,297 241,827 5,005,876 2,188,145 7,889,430 46,395 151,492 320,778 86,788 172,325 873,765 178,631 156 4,400,000 4,085 230,525 1,000,000 70,778 324,421 19,247,414 247,725 210,229
442,332 398,064 236,213 39,012 110,296 3,572,296 601,791 761,694 213,649 566,627 668,743 53,505 1,634,042 350,100 38,760 2 415,673 127,170 1,230,477 27,778,674 5,555,734 149,585 384,275 1,958,545 6,432,419 4,397,808 134,840 7,499 368,907 493,164 446,877 26,963 7,162 47,607 744,976 17,488 21,486 1,039,872 56,033 235,507 223,307 1,047,177 4,864,476 176,301 244,586 147,608 312,553 59,519 85,103 171,061 851,361 173,997 155,471 153 1,348,777 3,981 224,614 1,000,000 69,093 316,102 480,577 61 33,198
Unrated Unrated Muslim Ghee
211

1 .2 .2 P a rtic u la rs o f In v e s tm e n ts h e ld in u n - lis te d c o m p a n ie s 1 .2 .2 .1 O rd in a ry S h a re s - H o ld in g 1 0 % a n d a bo ve In v e s te e
P e rc e n ta g eo f R a tin g J C R V IS P A C R A h o ld in g
N o. of S h a re s h e ld
2010
2009
B re a k -u p v a lu e o f in v e s tm e n t
B ased on a c c o u n ts as at
N am e of C h ie f E x e c u tiv e
A tla s P o w e r L im ri Sdu g a r M ills D ig ite L imu iteA k b a r F a ji d P o rtia p s P a k is ta n G e lc a L im ite d In te c h In te .B .Ptio n a l I.D rn a . P a k is ta n A g ric u ltu re S to ra g e S e rv ic e C o rp o (F a c e v a lu e : R s .1 ,0 0 0 ra tio n each) P re c is io n E n g inuerc rin ga n d E n g in e e rin g M a n a g e m e n t R eso e es C a fa o ra tio M ills S o rp R ic e n L im m ad K n ittin g S ig ite M ills
U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d
U n ra te d 10% U n ra te d 1 9 .1 % U n ra te d 11 .0 % U n ra te d 1 4 .6 % U n ra te d 1 8 .6 % U n ra te d N o t A v1a8ila b le U n ra te d .3 % U n ra te d U n ra te d U n ra te d U n ra te d 1 6 .8 % 1 0 .0 % 1 5 .8 % 1 4 .1 %
3 7 ,5 0 0 ,0 0 02 ,0 0 0 ,0 0 30 ,7 2 6 ,6 6 0 62 ,0 0 0 ,0 0 0 2 7 5 ,0 0 0 1 ,0 1 1 5 ,5 0 0 1 5 ,1 0 0 6 6 ,1 2 5 4 5 0 ,0 0 0 0 0 ,0 0 5 0
3 7 5 ,0 0 0 4 ,0 6 3 3 0 7 ,2 6 7 4 ,6 6 5 5 ,5 0 0 6 9 6 ,4 9 5
3 7 5 ,0 0 0 4 ,0 6 3 4 ,6 6 5 5 ,5 0 0 3 8 9 ,2 2 8
4 1 7 ,5 5 3 0 -J u n 3 8 ,1 2 6 1 3 0 -S e p 9 9 -J u n 2 8 8 ,0 8 30 42 5 ,3 4 0 1 0 -J u n 3 06 . N o t A v a ila b le 1 0 9 ,8 3 1 . Not (4 8 4 ,6 9 6 ) (6 ,7 9 3 ) 3 1 -M a r03
M a q s o o d A . B a s ra M r. N a v e e d A h m a d J ar. e ri m e d R a n a M v Ah M r. S a d ru d d in H a s H w s s a n Z a id i M r. h a a n i M a j. G e n e ra l F a h im A k h te r K han
A v a ila b le M r.Z a h e e r H u s shaa fa a t A h m e d Ju ne M r.S in 3 0 ,2 0 0 5 M r. P e rv a iz A la m Ju ne . N o t A v a ila b le 3 0 ,1 9 9 9
1 .2 .2 .2 O rd in a ry S h a re s - H o ld in g b e lo w 10% In v e s te e R a tin g J C R V IS P A C R A
N o. of S h a re s h e ld
A l A m e e n T e x tile A l Z a m in M o d a rb a M a n a g e m e n t/P ro fe s s io n a l m a n a g ebm e n t o d ra a tto c k T e x tile M ills L im ite d A B rik k s P v t L im ite d E q u ity P a rtic ip a tio n F u n d (F a c e v a lu e : R s .1 0 0 a an F .T .C .eM c h )a g e m e n t F a u ji O il T e rm W a ls e n B a n k L im ite d F irs t in o m F o rtu n e S e c u ritie s L im n tie r T e x tile M ills F ro ite d L imlis ta n P o w e r G e n e ra tio n G u ite d L imzitera W o o le n M ills Ha a d L imeiteta P a k is ta n In s c d L imyite x M ills K a te d L imhite dT e x tile M ills M o ib L imsite d G h e e M ills M u lim L imfip d id e o M y ite V In a tio n a l s o n s tru c tio n N d u s trie C L imtio nda l F ilm D e v e lo p m e n t C o rp o ra tio n N a ite L imtio nda l In d u s try C o o p e ra tiv e B a n k o f N a ite G u jra t N a tio n a l In s titu tio n o f F a c ilita tio n T e c h n o lo g y (P v t) L imtio nda l In v e s tm e n t T ru s t N a ite (F a c e v a lu e : R s .1 0 0 h N a tio neaal cW )o o le n M ills L imw y o rk P o ly C lin ic o f N e ite d K a ra s h e h ra E n g in e e rin g W o rk s N ow chi L imkiteta n P a p e r C o rp o ra tio n P a is d L imkiteta n T e x tile C ity P a is d P a k is ta n T o u ris m D e v e lo p m e n t C a k isota ntio n p o rt F in a n c e G u a ra n te e A g e n c y P o rp ra E x L imoitele S te e l M ills Pe p d L imdite d e x tile M ills Q a ri T L imfrig d ra to r M a n u fa c tu rin g C o m p a n y R e ite e L imuitecd P o w e r P a k is ta n Ro s h L imbite R ic e a n d G e n e ra l M ills Ru y d L imuite dA s ia R e g io n a l S o th F u n d ib S hoa C MpEitaB a n k L im ite d l Sa S ta r S a lic a In d u s trie s L imgite e S y s te m E n in d S u n s h in e C lo th Mra n s m o b ile T ills L im ite T e x tile s M ills Z a fa r d L im iteadm E n g in e e rin g W o rk s Z u ls h L imtio nda l A s s e ts In s u ra n c e N a ite L td .
U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d A M -D S U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d BBB U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d
U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d B B B + /A 2 U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d U n ra te d
3 0 ,0 0 0 1 4 0 ,0 0 0 1 0 0 ,0 0 03 9 ,0 5 0 3 0 ,0 0 0 5 0 ,0 0 0 1 ,0 8 8 ,6 0 0 ,5 3 2 ,0 0 2 0 5 0 0 ,0 0 05 0 ,0 0 0 2 2 0 ,0 0 02 0 ,0 0 0 5 0 ,0 0 0 3 7 7 ,8 0 0 2 5 ,6 0 1 0 8 1 ,0 0 1 0 3 7 ,3 0 5 0 4 9 ,9 9 1 91 0 ,0 0 0 1 7 6 2 ,9 9 5 5 2 ,8 0 0 1 8 ,3 0 0 2 2 0 ,1 3 3 4 ,9 5 0 3 7 ,2 5 0 1 0 ,0 0 0 ,0 0 0 1 0 0 ,0 0 0 1 ,1 5 2 ,9 3 8 ,0 7 6 ,8 8 1 0 5 0 ,0 0 0 4 5 ,7 3 7 3 9 ,7 2 9 ,0 0 0 7 5 ,0 0 0 5 ,0 0 0 1 0 0 ,0 0 0 6 ,1 2 1 ,0 9 5 2 6 ,6 5 0 7 8 8 ,5 0 0 5 0 ,0 0 1 0 4 4 ,5 0 6 8 4 7 ,1 0 2 0 3 ,3 0 0 3 ,0 0 0 ,0 0 0
C o s t o f In v e s tm e n t B re a k -u p 2010 2009 v a lu e o f in v e s tm e n t ------------ R u p e e s in '0 0 0 -----------328 328 1 ,0 0 0 200 250 1 0 ,8 8 6 2 1 ,1 0 0 5 ,0 0 0 500 2 ,2 0 0 200 3 ,7 7 8 250 1 ,5 2 6 100 183 41 373 1 0 0 ,0 0 0 100 11 ,5 2 9 3 ,2 7 6 500 4 ,5 8 9 1 3 2 ,8 8 8 750 287 272 2 6 ,9 5 0 266 256 330 2 6 ,7 9 4 3 5 6 ,7 0 3 1 ,0 0 0 200 250 1 0 ,8 8 6 2 1 ,1 0 0 5 ,0 0 0 500 2 ,2 0 0 200 3 ,7 7 8 1 ,8 1 0 5 ,3 7 3 250 1 ,5 2 6 100 183 41 373 1 0 0 ,0 0 0 100 11 ,5 2 9 3 ,2 7 6 500 4 ,5 8 9 1 3 2 ,8 8 8 750 287 272 2 6 ,9 5 0 267 256 330 2 6 ,7 9 4
B ased on a c c o u n ts as at
N am e of C h ie f E x e c u tiv e
2 ,1 3 4 J u n e 3 0 , M r. B a s h ir A . C h a u d h ry 2 e p t. (1 ,4 1 2 ) S 0 0 6 3 0 , 1 9 9 8M r. A rs h a d A li ... . N o C A a u ila b le . t h v a d h ry 1 9 ,9 3 9 D e c e m b e r 3 1 , 2 0 0 8 M r. M u h a m m a d A k h te r 500 Jun e 3 0, E n g r. M ir fa te h S u lta n 2 5 ,5 5 5 2 u n e 3 0 , J 008 L t. G e n h a m id R a b 9 7 ,5 9 9 2 0e1c0. 3 1 . 2 0 0 9 N a w Z a re e n A z iz D M s. az 4 ,3 6 6 D e c . 3 1 . 2 0 0 9 M r. K a m ra n A h m e d 272 S e p . 3 0 , 2 0 0 2 K h a lili N o t a 8 ,0 9 6 J u n e 3 0 , M r. A b d u lv a ila b le 2000 Shakoor 315 Ju ne M r. S y e d T a u q e e r 3 99 0 ,1...7 . N o H A idaeila b le . t av r
... . N o t A v a ila b le . 597 Jun e 3 0, M r. A li M o h a m m a d S h a S a jja d (1 ,8 2 5 ) 2 u n e 3 0 , J 005 M r. ik h 2000 H a id e r 1 7 ,4 8 8 Jun e 3 0, M r. M . M . K h a n 2010 1 ,4 8 7 J u n e 3 0 , M r. T a riq Iq b a l K h a n 2010 ... . N o t A v a ila b le . (2 4 1 ) J u n e M r. A k h te r A z iz k h a n 3 0 ,1 9 9 8 ... . N o t A v a ila b le . 7 9 ,4 9 4 D ec M r. Z a h e e r 3 1 ,2 H u s s a in N o t 2 4 ,9 8 3 J u n e0 1 0 3 0 ,1 9 9 6 a voat ila b le 1 ,1 5 2 D ec 31, N 2009 a v a ila b le ... . N o t A v a ila b le . 5 3 9 ,5 5 Ju ne M r. N a s e e m A k h te r 2 0 ,2...0 . N o t A v a ila b le . 3 01 D e c 3 1 ,0 7 M r. J e a n F o n d a u m ie tre 544 Ju ne No v a ila h ta 4 7 ,5 2 4 3300,2 060-0 -0 M r. R . A aC h u g b le i 2010 ... . N o t A v a ila b le . (4 4 ) J u n e M r. J a v e d B u rk i 3 0 ,1 9 9 7 ... . N o t A v a ila b le . 3 1 -D e c 09
212
213
1 .3 P a r tic u la r s o f In v e s tm e n ts h e ld in u n its o f m u tu a l fu n d s
340,58 142,17 21,33 5,04 3,14 14,39 97,90 174,12 183,23 13,74 25,13 18,31 2,95 39,05 14,31 27,97 3,14 7,02 3,23 14,14 129,95 1,29 19,16 19,72 793,09 2,223,97 9,77 --------Rupees in 1 0 4 5 8 9 5 0 3 5 2 8 4 8 o . o f c e r 1 a te s 4h e ld 3 4 5 M a 4k e t v a lu e 6 7 - R a tin g 5 0 N 3 6 tific 4 r '000------200 1 J C R V IS PACRA 2010 2009 2010 2009 9 Market ... . R u p e e s in '0 0 0 value 21,62 3,86 354,49 14,66 89,39 171,60 189,20 14,19 339,42 150,72 14,41 1,48 36,61 12,30 3,32 3,14 4,84 132,37 124,06 28,47 19,93 855,41 2,605,65 4,96
L is te d :
2 A H D o w J o n e s S3 fe P- a k- T 5 n s 3 5 In6 e1 F u n d 0 a ita 1 d x U n ra te d 8 U n ra7 d 9 3 2 3 2 93 4 ,2 3 4 0 5 8 9 -5 te 6 6 0 0 ,0 0 03 8 0 A K D In c o m e F u n d B B B (F ) U n ra te d 5 4 ,0 1 1 2 ,5 2 1 201 0 9 9 ,1 7 8 5 1 ,1 2 6 A tla s M o n e y M a r k e t F u n d U n ra te d A A + (f) 1 ,1 5 9 ,5 0 0 5 ,3 1 1 A tla s F u n d o f F u n d s U n ra te d U n ra te d 1 ,1 5 9 ,5 0 0 4 ,1 0 5 Al M eezan Fund U n ra te d U n ra te d 1 ,4 2 3 ,2 4 1 9 ,3 9 3 1 7 37,800 ,7 A s ia n S to c k4,409 d F u n 1,030 1,903 3,000 24,00035,000 40,0003,000 U n ra te d 5,000 n ra31,0001,400 69010,0000 5 27,0007,000,2 1 026,9094,000 9180,003,000 7 0 2 U 1,190 d te 1 7 900 1 1,902 70,200 6,090 6,500 9 4 No. of certificates heldio n 8 0 ,3 2 6 - 0 D o m in200 S to c k F u n d U n ra te d U n ra te d 7 8 ,2 6 7 2 5 ,1 0 9 2 ,6 4 0 F a y s a 9 S a v in g s G r o w th F u n d l A (F ) U n ra te d 2 4 ,4 3 5 2 ,5 2 3 F ir s t C a p ita l M u tu a l F u n d U n ra te d 3 - S ta r /2 - S ta r 7 1 ,0 5 3 253 5 ,8 4 2 ,8 0 9 11 ,6 8 6 F ir s t D a w o o d M u tu a l F u n d U n ra te d 2 - S ta r /3 - S ta r 5 ,8 4 2 ,8 0 9 9 ,8 7 4 180,003,000 4,409 1,030 1,903 3,000 24,00035,000 40,0003,000 70,200 70,0005,000 1,190 31,0001,400 69010,000 27,0007,000 7,800 6,500 900 26,9094,000 - 0 F ir s t H a b ib In c o m e F u n dU n ra te d A A - (f) 6 2 ,1 0 0 6 ,4 1 6 201 H B L In c o m e F u n d A (F ) U n ra te d 1 8 8 ,3 2 1 1 8 ,5 1 8 0 IG I In c o m e F u n d A + ( f) 3 - S ta r 6 1 ,0 8 6 6 ,4 8 3 8 7 ,8 5 8 In v e s te c M u tu a l F u n d U n ra te d U n ra te d 5 ,3 4 0 ,3 7 2 2 9 ,6 3 9 J .S . G r o w th F u n d U n ra te d U n ra te d 5 ,2 1 2 ,4 8 6 2 5 ,7 5 0 1 ,2 8 6 ,2 6 9 3 3 ,9 1 3 J .S ermrg e C a p ita l F u n d L aRatin U n ra te d U n ra te d 4 ,1 4 6 ,2 9 9 1 9 ,0 7 3 W) A+(-) BBB7 ,7 AA AA1 ,8 3 ,7 8 AA J .S .Longlu e FAA- d A- A A AA- CCC(RAA-AA- AA AA U n ra te d A+ U n raA d AA+ AA D 2A- 6 4A+ 1 ,8 1BBB 5 7 AA AA ,7 4 2 A 1 0 ,2 1 6 Vg a un te T 5 ,9 2 8 ,5 0 0 4 4 ,4 6 4 M e e z a n B a la n c e d F u n d U n ra te d U n ra te d 5 ,9 2 8 ,5 0 0 3 6 ,1 6 4 N A F A In c o m O p p September 5, n d (N A F A C a s h F u n d ) o rtu n ity F u A (f) A + ( 27, 3 ,6 0November 15,September 8, 3 6 ,6 1 8 1 ,6 9 1 Decemberf) 2013 2010 February 14, December 6, 2014 October 31, December 2, 2017 December 2, 2017 February 28, November 28, 201 1, 20133 N A F A G o v e rn m e 2010 e May 31,s2010Augustu17,d n t S c u ritie2013iq u id F n L U n raMarch May 25, 2012March March ,0 0 201 0 0 March 15, 2018 1 3 0 ,7 9 9 te d 5, 2016 March 13, 1 201 31, 0 ,0 June 26, - 2013 2014 June 28, 15, n ra te d July U 2013 1 June 2, 2012 9, 1 1 May 27, 201 2017 1, 201 2012 m e 2012 Maturit N A F A Is la m ic A g g In c o m 2010 n d (N A F A Is la m ic In c o2012 FUun ra)te d e Fu nd U n ra te d 7 ,5 0 0 ,0 0 0 5 2 ,8 9 2 y October 1 N A F A Is la m ic M u lti A s s e t F u n d U n ra te d 5 -July 1r S ta 7 ,5 0 0 ,0 0 0 6 9 ,9 3 5 N A F A M u lti A s s e t F u n d U n ra te d 3 - S ta r /4 - S ta r 4 ,4 1 0 ,7 5 2 4 1 ,0 3 0 N A F A S to c k F u n d U n ra te d 2 - S ta r 7 ,5 0 0 ,0 0 0 5 4 ,0 6 0 N A F A S a v in g s P lu s F u n d U n ra te d A A - ( f) 3 ,0 0 0 ,0 0 0 3 0 ,3 5 4 2 ,0 0 0 ,0 0 0 8 ,2 6 0 N A M C O B a la n c e d F u n d U n r a te d U n r a te d 2 ,0 0 0 ,0 0 0 9 ,4 4 0 0 ,0 Half N IT G paymenHalfn t Halfn d F Half o v e rn m e B o u n Half Half Half d U r a Half te 1 ,0 0Half 0 Half 1 Half Half Half U n r a te d Half nHalf d Half 1Half 0 0 ,0 0 0Half 0 Half 0 ,0 0 Half 1 0 5 ,1 Half Half 0 1 ,3 0 0 Half Half Half 0 0 yearly yearly yearly yearly yearly yearly yearly 2 4 2 9 ,3 7 yearly N IT Profi o m e yearly yearly early yearly yearly yearly yearly yearlyU n r a te d yearlynyearlyd yearly yearly 6 ,6 5 3yearly yearly yearly3 0 9 ,9 yearly yearly In tc Fund U r a yearly te P a ktis ta n P re m ie r F u n d U n ra te d 4 - S ta r /4 - S ta r 3 4 2 ,6 3 7 2 ,0 3 9 Y All term finance certificates have a face value of Rs.5,000 each unless otherwise 5 ,1 mentioned. 5 ,1 1 5 ,1 3 2 3 1 ,3 1 9 4 3 ,0 7 2 P a k is ta n S tra te g ic A llo c a tio n F u n d U n ra te d 4 - S ta r /4 - S ta r 2 2 ,7 1 1 2 ,1 3 3 ,5 8 5 1 3 ,9 9 6 P IC IC E n e rg y F u n d U n ra 3.5% 2 ,1 1 4 ,2 7 6 1 0 ,0 2 2 with floor te d and U n ra te d cap plus last f yield on2.75% PIB 10% ra te P IC IC G r o w th 6 months KIBOR 5 yrs months KIBOR 6 months 6 month n2.5% d 6 monthsnKIBOR 6 monthmonths+ ,4 KIBOR6+month9 Kibor + +1 4 6 ,9 2 3 6 Months 0 ,1 KIBOR + 2.75% U U 6 month 2.25% 11 ,0 8 8KIBOR + 1.5% month 12.5% KIBOR + 2.% 6 Months 5 1 +8.5% ra te d + Kibor +6 Months 9 1 1 01.5% ,5 months ,5 1 5 KIBOR + 1.9% 6 month Kibor +6 month Kibor + 6 + 1.5% KIBOR + KIBOR + 6 Kibor 6 months 6 2 6 Kibor KIBOR + 7 %months KIBOR + 1.7 6 6 month Kibor + 3.75% F u( fodrm e rly : In v e s tm e n t C o rp o r a tio 2.4% P a k is ta n1.5%E M F ) n 2.25%1.15% n of - 1.5% S 1.6% 2% erm P IC IC In v e s tm e n t F u n9.5% finance 15% 6 ,7 4 0 ,8 2 1 d 9.5% U n ra te d U n ra te d 5 ,6 0 8 ,7 4 8.45% 4 3 (Fixed) 5 9.49% ,2 0 9 3 2 ,6 4 3 3% (Fixed)14.51% auction held by 15.30 (Fixed) 10.00 (Fixed) certificates interes 15.48 14.73 16.09 15.86 15.38 Rate - 13.66 R e lia ntc e In c o m e F u SBP (Fixed) nd U n ra te d 14.35n ra14.66 14.81 (Fixed) 14.82% 5 15.233 U te d 3 1 ,4 9 1 6 ,5 2 7 % % % % % % % % % % % % of 3 6 6 ,2 5 9 3 8 ,1 5 6 U n it T ru s t o f P a k is ta n U n ra te d U n ra te d 1 ,9 1 6 ,2 5 9 2 2 0 ,8 1 1 (F o r m e rly J .S A B A M C O L im ite d ) 9 3 1 ,3 7 8 1 ,0 3 3 ,3 2 0 Cut-of
erm Certificates and T *
* * *
* *
* * *
1 .4 P a r tic u la r s o f In v e s tm e n ts h e ld in P r e fe r e n c e s h a r e s
Al-Zamin Leasing Corporation Limited)
Financial Receivable Securitization Company Limited
Debentures, Bonds, Participation T
R a tin g J C R V Limited Invest Capital Investment Bank IS P A C R A
C u m u la tiv e / N onc u m u la tiv e
R a te
N o . o f c e r tific a te s h e ld 2010 2009
M a r k e t V a lu e / C o s t 2010 2009 - - -- - - R u p e e s in '0 0 0 - -- - elecom Limited
L is te d :
erm finance certificates
AL-Zamin Leasing Mod. AL-Zamin Leasing Mod.
IGI Investment Bank Limited Arab Fertilizers Limited
Saudi Pak Leasing rust Invest. Orix 1 0 ,0 0 ,0 Ltd. 1 0 ,0 0 ,0 0 0 2 C h e n a b T e x tile M ills L im ite Askari AzgardaNine Limited a teAl-Habib m u la tiv e d U n r te d UAl-Habib LimitedLimited nr d C u 9 .2 5 % Leasing0Pak. 0 0Soneri Bank0Limited Bank5 ,0 0 0 7 0 ,0 0 0 Co.Searle Pakistan Ltd. Bank Limited Ltd. Al-Falah 7 3 7 ,6 9 9 N is h a t C h u n ia n L td U n Al-Falah U n Ltd. d C u m u la tiv e Bank Ltd. 5 .0 0 % ra te d Ltd.r a te 1 7 1 Card 3 1 5 ,4 1 8 ele 8 ,7 8 Limited 1 5 ,4 9 2 Faysal Allied Bank Ltd. 105 6 S a le e m S u g a r M ills U n r a te d U n r a te d C u m u la tiv e 6 .0 0 % 1 0 5 1st 2nd3rd Issue Issue 6 NIB Bank Ltd. Issue 4th Issue T 5 ,0 0 0 ,0 0 0 1 2 7 ,5 0 0 orld 5 0 ,0 0 0 M a s o o d T e x tile M ills(Formerly U n r a te d U n r a te d F lo a tin g 1 2 .6 5 % 5 ,0 0 0 ,0 0 0 Call
M a p le L eListe e m e n t F a c to r y Investea f C d P a keE le k tr o n L im ite d

T 1. 5 1.5. o s t * C 1
U n r a te d SD C u m u la tiv e Bank Bank Bank Bank U n r a te d A /A 1 C u m u la tiv e
9 .7 5 % 9 .5 0 %
11 2 ,9 9 6 1Pak 9 3 ,6 4 2 2 ,8
477 11 2 ,9 9 6 UBL 3 6 1 2 ,8 6 1 ,4 6UBL 1 2 8 ,9UBL 2 UBL T T 2 9 7 ,4 1 1
537 1 4 5 ,3 2 8 2 8 1 ,2 8 9
o f th e a b o v e in v e s tm e n t a m o u n te d to R s .5 6 9 .5 m illio n (2 0 0 9 : R s .2 9 3 .5 m illio n )
214

--------Rupees in '000------431,250 5,168 2,640 3,643 2,745 24,595 3,093 2,549 3,283 16,088 924 900 431,250 187,500 9,668,64 186,507 78,337 2,252 30,000 3,385 357 3,549 35,896 3,417 1,185 4,000,00 1,350 4,000,00 1 199,560 4,238 2,471 0 0 3 51 Market value/cost 2009
2010
377,344 5,168 2,640 3,643 2,745 24,595 3,093 2,549 3,283 285,000 357 3,549 35,896 377,344 187,500 7,794,09 162,297 78,337 2,252 22,500 3,417 1,081 924 900 1,185 3,000,00 1,350 3,000,00 1 200,394 4,238 0 0 2 51 -
No. of certificates held 5,750 2009 -
40,000 2,500 20 14 16 16 14 1 28 22 10 24 31 17 17 6,000 6 14 30 14 46 6 1 30 10 5,750 40,000 14 16 16
2010
40,000 57,000 2,500 5,750 20 14 16 16 14 1 28 22 10 24 31 17 17 6,000 6 14 30 14 46 6 1 30 10 5,032 40,000 14 16 16
erm Rating Long T
Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated CCC AA November 16, December 3,February 27, 2013 February 27, 2013 August 22, August 22, 2018 2012 June 1, 2014 23, 2014 2014 May 17, 2014 2014 Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue October 1
Maturity
Half Half Quarterly Half yearly Half yearly Half yearlyyearly yearly payment Half yearly Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Profit 6 month Kibor 6 month Kibor + + 1.75% 2.5% interest Rate of 6 month Kibor +6 monthmonthmonthmonth + + + 6 Kibor + 3 Kibor Kibor 6 months KIBOR + 2.5% 6 Kibor +6 month Kibor 0.05% 0.05%2.5% 1.60%1.25% 2.50%
22.00% 22.00% 22.00% 22.00% 22.00% 22.00% 22.00% 22.00% 22.00% 22.00% 22.00% 22.00% 22.00% 22.00% 22.00% 22.00% 22.00% 22.00% 22.00% 22.00% 22.00% 22.00%
22.00%
Al-Qaim T
Ghani Holding Co.Ltd. JCLIII Faisalabad Electric Supply Co. Javedan Cement Limited Ltd. Gujranwala Electric Power Co. Ltd. Abbas Holding Co Ltd. JCL- II Jahangir Siddiqui & Company entage & Canvas Mills * * * ** * * *** *** ** Limited Allied Industries Limited erm finance certificates Limited Blue Star Spinning Mills General Dairies & Food Unlisted Hospitex International Limited Cast-N-Link Product Limited Gypsum Corporation Bachani Sugar Mills Limited Danneman Fabrics Limited Baluchistan Cotres extile Mills extile Mills Limited Limited Mills Frontier Ceramics Balance carried forward extile extile Mills JDW Sugar Mills Faruki Pulp Mills Limited Limited Limited extile Mills Bankers Equity Limited Limited Limited Limited Limited Bela Chemical Limited Bentonite Pak Steel Limited Apex Brother Agro Dairies Fabrics Limited Limited Limited Limited Limited Limited Agritech Kamal Ghee Limited & Bunny's Ltd Al-Azhar T T T Chinio T Glorex T Aswan Investee Aqma t Al T
215

9,668,64 100,00 1,500 13 2,082 1,401 1,640 1,306 1,1- 0 3 95 401 751,26 9,594,62 2,974,28 108,64 150,00 500,56 1 8 6 0 - 0 - - 6 2,092 6,081 639 104 2,320 7,445 1,799 748 759 67 1,126 7,516 3,831 6,749 5,423 2,202 1,035 4,302 42,287 904 23,332 2,196 23,980,51 9
--------Rupees in 200 9 '000------Market value/cost

7,794,09 89,879 1,500 120,00 1,640 1,306 205 1,630,00 95 401 749,18 4,538,69 2,092 6,081 582 104 2,320 7,445 1,799 748 759 67 1,126 7,516 9,594,62 2,973,09 81,910 150,00 15,000,00 6,749 5,423 2,202 1,035 4,302 18,524 943,50 499,22 12,747,00 1,401 3,831 904 23,332 2,196 57,016,88 8 6 0 1 0 0 6 2 - 0 0 0 0 5
201 0
No. of certificates 200 held 9
20,000 24 1 Pending -
Pending 1,918,92 100,00 594,97 150,00 4 22,000 40,000 6 0 0 14 28 20 16 16 - 2 1 1
15,000 2 14 24 32 17 24 26 14 13 6 15 2 16 28 22 16 5 2 16 38 14
20,000
201 0
24
900,00 Pending Pending 1,918,92 0 Pending 188,70 594,61 150,00 100,00 4 22,000 40,000 0 9 0 0 1 16 1 14 2 28 20 16
15,000 2 14 24 32 17 24 26 14 13 6 15 2 16 28 22 16 5 2 16 38 14
erm Ratin Long g T
Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated Unrated A-
September 18, December 31, 2020 December 29, 2012 6, 2013 December 1 1 February 22,2014 MarchMay 2014 18,February May201 2015 30, 14, 2015 201 1 April 23, 19, March 23, 201 1, 2015 1 April July 6, 20162014 July 16, 201 Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue
Maturit y
Outstanding Half yearly Half yearly yearly Half yearly Half Half Half yearly Half Quarterly Overdue OverdueHalf yearly yearly Quarterly Half yearly yearly Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Quarterly Overdue Overdue Overdue Overdue OverdueQuarterly Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue
paymen Profi t t
1.50 % 6 months KIBOR + + % 0.85%. Kibor KIBOR 6 6 Kibor Kibor month Kibor + 0.65% 2.25% 3 month Kibor + 3.00% 6 month Kibor + 1.75monthmonth + 1.9% 0.65% 2.50% 2% 6 month Kibor + 3.00% 3 monthmonth +6 3 +3 Kibormonths + KIBOR + 2% 6 months 6 months KIBOR + 6 month Kibor + 2%.
3 month Kibor + 1.50%
interes Rate of t
22.00% 22.00% 22.00% 22.00% 22.00% 22.00% -
22.00% 22.00%
22.00% 22.00% 22.00% 22.00% 22.00% 22.00% 22.00% 22.00% 10,134 million (2009: Rs. 5,567 million) 22.00% 22.00% 22.00% 22.00% 22.00% 22.00% 22.00% 22.00% 22.00% 22.00% 22.00% Rs. 22.00% 22.00% to TFCs amounted
* * *
Represents certificates of face value Rs.100 million each Represents certificates of face value Rs.100,000 each
erm finance certificates Unlisted
Airlines Corp. Limited Munawarransmission Dispatch Co. Ltd limited. Engineering Company Limited Allied Electronic industries
Investme nt
awakkal Garments Industries Limited Ultra Engineering Industries Limited Pak Kuwait Investment Bank Ltd. Pak Kuwait Investment Bank Ltd. aleed Leather Industries extile Mills Limited iles & Ceramics Limited F G Limited Tharparkar Sugar Mills Limited Oil & Gas Investment Limited. Scan Recyclingextile Mills Limited (Pak) Limited Malik Food Industries Limited eaving Mills Limited APDA extile Mills Limited Pakistan extile Mills Limited eaving Mills Limited Sinsas Enterprises Limited Balance brought forward Munro & Millar Mills Limited Laminates Limited Holding Private Ltd Shazeb Industries Limited Power extile Mills Limited Kiran Sugar Mills Limited Kiran Sugar Mills Limited Qand Ghar (Pvt) Limited Royal Bank of ScotlandW Ltd SarelaSeri Sugar Mills Limited Silica International Minaco Fabrics Limited Star Cement Limited Arab Fertilizer A/c extile Industries SME Leasing LimitedLimited Sunflo Juices Limited Munalisa Fruit Juices Pakistan ubes International anocraft Limited Cost of the T Power Pak Hy-Oil Ltd Holding Sialkot above Shah JewanaDairies T T T T Silverland T Regency Pirjee W National National T T Raja W Kunjah T urbo Zamir New Sind Pak W T T T * ** ***
216

1.5.2 Debentures Investee
Terms of Redemption Principal Interest
Rate of Interest
Cost 2010 2009 --------Rupees in '000------1,005 270 1,397 269 175 1,510 798 572 23 15 3,286 1,998 2,336 495 95 317 180 1,875 204 1,799 3,828 75 150 437 58 1,148 47 50 165 470 156,034 1,000 1,013 510 400 160 66 506 144 489 105 57 740 543 102 955 1,170 368 83 163 280 200 175 178 236 190,724 1,005 270 1,397 269 175 1,510 1,141 572 23 15 3,286 1,998 2,336 495 95 317 180 1,875 204 1,799 3,828 75 150 437 58 1,148 47 50 165 470 156,034 1,000 1,013 510 400 160 66 506 144 489 105 57 740 543 102 955 1,170 368 83 163 280 200 175 178 236 191,067
Aaj Textile Mills Limited Aaj Textile Mills Limited Ajax Industries Limited Ajax Industries Limited Ali Asbestose Industries Limited Ali Asbestose Industries Limited Allied Ghee Industries Limited Allied Ghee Industries Limited Allied Marbles Industries Allied Marbles Industries Azad Kashmir Mineral Development Corporation Azad Kashmir Mineral Development Corporation Azad Kashmir Mineral Development Corporation Carbon Dioxide Limited Carbon Dioxide Limited Chillya Corrugated Board Consolidated Spinning & Textile Mills Limited Consolidated Sugar Mills Damaan Oil Mills Effef Industries Limited Effef Industries Limited Electric Lamp Manufacturing Electric Lamp Manufacturing Hassan Tanneries Limited Hassan Tanneries Limited Hazara Woolen Mills. Hydri Gas Limited Hydri Gas Limited Junaid Cotton Mills Limited Junaid Cotton Mills Limited Karachi Development Authority Khyber Textile Mills Limited Lahore Dyeing & Printing Mill Mansoor Textile Mills Morgah Valley Limited Morgah Valley Limited National Woolen Mills Pakistan Paper Corporation Progressive Tobacco Co. Qadri Textile Mills Limited Regal Ceramics Limited Rising Sun Knitwear Industries Rose Textile Mills Limited Sarhad Bricks Limited Sarhad Bricks Limited SDA-A/C Cold Storage Haripur -1 SDA-A/C Cold Storage Haripur -2 Shafaq Lamp Manufacturing Corporation Shafaq Lamp Manufacturing Corporation Shahdin Limited Shahyar Textile Mills Limited Spinzer Towel Industries Limited Spinzer Towel Industries Limited Sun Publications Limited Zulsham Engineering Works Limited
Outstanding Outstanding Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Outstanding Outstanding Overdue Overdue Overdue Overdue Overdue Overdue Outstanding Overdue Outstanding Outstanding Overdue Outstanding Outstanding Overdue Overdue Overdue Overdue Outstanding Outstanding Overdue Overdue Overdue Overdue Overdue Outstanding Overdue Overdue Overdue Outstanding Outstanding Overdue Overdue Outstanding Outstanding Overdue Overdue Oustanding Oustanding Overdue Overdue
Outstanding Outstanding Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Overdue Outstanding Outstanding Overdue Overdue Overdue Overdue Overdue Outstanding Overdue Outstanding Outstanding Overdue Outstanding Outstanding Overdue Overdue Overdue Overdue Outstanding Outstanding Overdue Overdue Overdue Overdue Overdue Outstanding Overdue Overdue Overdue Outstanding Outstanding Overdue Overdue Outstanding Outstanding Overdue Overdue Oustanding Oustanding Overdue Overdue
14% 12.5% 11% 14% 14% 11% 16% Interest free 14% Interest free 12% 14% 12.5% 11% 14% 14% 14% 14% 14% 14% Interest free 11% 14% 14% 12.5% 14% 11% 14% 12.5% 14% 12.5% 14% 11% 14% 11% 14% 14% 11% 14% 14% 14% 14% 14% 11% 14% 12% 12.5% 11% 14% 14% 14% 12.5% 14% 13.5% 14%
217

1 .5 .3 P a rtic ip a tio n T e rm C e rtific a te In v e s te e N u m b e r o f R a te o f P a id - u p v a lu e C ost 2009 c e rtific a te (s ) in te re s t p e r c e rtific a te 2 0 1 0 R upees --------R u p e e s in '0 0 0 ------17% 17% 17% 17% 17% 17% 17% 17% 17% 17% 17% 17% 17% 17% 17% 17% 17% 17% 17% 17% 17% 17% 17% 17% 17% 17% 17% 17% 17% 17% 17% 17% 17% 17% 17% 2 6 1 ,0 0 0 1 7 2 ,1 1 3 1 0 4 ,1 6 7 2 2 6 ,0 0 0 3 2 ,9 1 7 1 3 7 ,0 0 0 1 0 ,5 0 0 ,0 0 0 3 0 0 ,0 0 0 2 5 9 ,8 0 0 11 ,6 0 1 ,0 0 0 2 6 8 ,7 1 4 2 2 6 ,2 0 0 3 2 ,5 9 4 6 0 0 ,0 0 0 4 3 1 ,9 3 8 6 4 ,2 9 4 8 2 ,4 6 7 6 9 ,6 4 3 2 2 9 ,3 6 4 8 7 ,8 0 0 2 9 ,2 5 0 5 5 0 ,8 1 8 9 4 ,6 9 2 4 4 2 ,5 8 6 1 2 1 ,5 0 0 3 8 8 ,6 6 7 1 2 2 ,1 7 4 1 4 ,9 0 9 4 0 6 ,6 2 9 8 9 ,4 5 5 5 9 8 ,7 6 5 1 3 7 ,4 6 7 5 1 ,0 0 0 8 8 ,3 8 5 6 5 ,4 5 5 3 ,3 9 3 7 ,0 8 1 448 226 395 1 ,9 1 8 1 0 ,5 0 0 300 3 ,8 9 7 7 ,3 0 3 1 ,1 1 8 2 ,2 6 2 1 ,0 4 3 451 4 ,4 1 5 1 ,0 9 3 1 ,2 3 7 727 2 ,5 2 3 508 468 3 ,2 1 5 757 8 ,5 8 5 1 ,4 5 8 3 ,8 3 3 2 ,2 2 3 165 1 4 ,2 3 2 490 9 ,4 5 7 1 ,8 0 3 727 1 ,0 9 4 720 1 0 0 ,0 6 5 3 ,3 9 3 7 ,0 8 1 448 226 395 1 ,9 1 8 1 0 ,5 0 0 300 3 ,8 9 7 7 ,3 0 3 1 ,1 1 8 2 ,2 6 2 1 ,0 4 3 451 4 ,4 1 5 1 ,0 9 3 1 ,2 3 7 727 2 ,5 2 3 508 468 3 ,2 1 5 757 9 ,6 7 0 1 ,4 5 8 3 ,8 3 3 2 ,2 2 3 165 1 4 ,2 3 2 490 9 ,4 5 7 1 ,8 0 3 727 1 ,0 9 4 720 1 0 1 ,1 5 0
A li P a p e r In d u s trie s L im ite d 1 3 A lip u re J u te M ills L im ite d 53 A m e ric a n M a rb a ls L im ite d 12 A z m a t O il In d u s trie s L im ite d 1 A n n is G a rm e n ts L im ite d 12 B h a w a lp u r B o a rd M ills L im ite d1 4 B e la C h e m ic a ls lim ite d 1 C a lc iu m L im ite d 1 C ry s ta l C h e m ic a ls L im ite d 15 D a d a b h o y C e m e n t L im ite d 1 D e lta T y re & R u b b e r C o . 7 F ro n tie r C e ra m ic s L im ite d 10 G y p s u m C o rp o ra tio n L im ite d 3 2 Itte h a d In d u s trie s L im ite d 1 J u b ile e P a p e r B o a rd M ills 16 K a m a l E n te rp ris e s L im ite d 17 K h a tta k E d ib le O il L im ite d 15 L e a th e rite L im ite d 14 M a s s D a irie s L im ite d 11 M e d ite x In te rn a tio n a l L im ite d 1 5 M o rg a h V a lle y L im ite d 16 N a tio n a l F ru c to s e L im ite d 11 P a k B e lt In d u s trie s L im ite d 13 P a n g rio S u g a r M ills L im ite d 2 9 P u n ja b B u ild in g P ro d u c ts 12 P u n ja b C a b le s M ills L im ite d 1 2 R a in b o w P a c k a g e s L im ite d 2 3 S a m p a k P a p e r B o a rd M ills 11 S a re la C e m e n t L im ite d 35 S h a fi W o o le n In d u s trie s L im ite11 d S in d h G la s s In d u s trie s L im ite d1 7 S ta r S ilic a In d u s trie s L im ite d 1 5 U n ite d W o o d (V e e n e r) L im ite d1 5 W a z iris ta n O il In d u s trie s L im ite d 13 Z a fa r O il In d u s trie s L im ite d 11
218

1 .5.4 Inve stm e n t in S uk uk In vestee T e rm s of P R e de m ption In te rest rincipa l B iA nn ua l B iA n n ua l B iA n n ua l B iA nn ua l B iA n n ua l B iA n n ua l B iA n n ua l B iA n n ua l B iA n n ua l B iA n n ua l B iA n n ua l B iA n n ua l B iA nn ua l B iA nn ua l B iA nn ua l B iA nn ua l B iA n nu a l B iA n nu a l B iA n nu a l B iA n nu a l B iA n nu a l B iA n nu a l B iA n nu a l B iA n nu a l Q ua rte rly B iA n nu a l
R ate o f Interes t % 12.12 % 6 m o nth K ibo r + 0.25 % 13.89 % 6 m o n th K ibo r + 1.5% 14.97 % 3 m o nth K ibo r + 1.65 % 15.30 %
M ark et 2 V a 0 e/C o st 2 0 09 01 lu --------R up ee s in '00 0------1,31 0 ,5 8 8 3 48 ,1 8 6 55 0 ,0 0 0 3 ,1 45 1 ,3 35 ,6 5 8 33 1,08 6 55 0,00 0 5,0 15
W A P D A S uk uk (2 nd Is su e) Q uetta T extile P IA C orpo ra tio n M ap le L eaf C e m e n t L im ite d Isla m ic B an king W A PD A Su ku k O rix L ea sing S itara E nergy S ecurity L easin g L im ited K oh at C em ent L im ited A rzo o T extile L im ited G oP Ijara S uk uk E ng ro F ertilize r L im ite d
6 m o nths K IB O R + 1 .7 %
2 3,0 9 12.27 % 6 m onth K ibor + 0.25% 8 1 9,0 4 14.86 % 6 m o nth K ibor + 1.25 % 0 2 2,4 5 14.35 % 6 m o nth K ibor + 1.95 % 0 3 % (F ix ed ) F ix e d 4 5,7 0 3 9 7,5 8 9
2 3,13 2 3 3,07 5 3 4,98 5 6 6,90 0 10 8,67 5 10 0,00 0 5 0,00 0 -
10 0,00 15.21 % 6 m o nth K ibor + 2.00 % 0 5 0,0 0 13.27 % A s per SB P P ub lication s 0 21 6,73 14.36 % 6 m on th K ib or + 1.50% 7 21 9,94 1 3 .0 2 % 3 m o nth K ibor + 0.20 % 5 17 5,00 14.96 % 6 m o nth K ibor + 1.75 % 0 3,18 1,48 1
S ui S ou th re n G a s C o. L im ite d Q ua rterly P ak is tan Intern ation a l A irline B iA n n ua l
2,63 8,52 6
219

1.5.5 Others Government Bond Investment
Terms of Redemption Investee Principal Interest
Rate of Interest % Six month's T-Bill auction day on the date preceding the date of payment of return 8.8142% rate
Market Value/Cost 2010 2009
CIRC
Overdue
Overdue
11,242
11,242
Overseas Bonds --------Rupees in '000------Banco Santander
On Maturiy Banco Santander On Maturiy Banco Santander On Maturiy Banco Santander On Maturiy Bank of America On Maturiy Bank of America On Maturiy Bank of America On Maturiy Bank of America On Maturiy BNP Paribas On Maturiy Citibank On Maturiy Citibank On Maturiy Citibank On Maturiy HSBC On Maturiy Lloyds Tsb Bank On Maturiy Lloyds Tsb Bank On Maturiy Lloyds Tsb Bank On Maturiy Lloyds Tsb Bank On Maturiy Merrill Lynch & Co On Maturiy Merrill Lynch & Co On Maturiy Morgan Stanley & Co On Maturiy Morgan Stanley & Co On Maturiy Morgan Stanley & Co On Maturiy Morgan Stanley & Co On Maturiy Royal Bank of Scotland On Maturiy Royal Bank of Scotland On Maturiy Royal Bank of Scotland On Maturiy Royal Bank of Scotland On Maturiy Al Daar International Saudia Arabia Bi-Annual Al-Tajeer Sukuk Bi-Annual Pak International Sukuk Bi-Annual FCLR Bond Annually GoP Euro Bond On Maturiy GoP Euro Bond On Maturiy AMEX BK FSB On Maturiy HSBC Finance Corporation On Maturiy HSBC Household Finance Corporation On Maturiy Sukuk Bonds On Maturiy
Foreign Govt. Security MYM-JSC Almaty Foeign Govt. Security MEKKAM- JSC Almaty
Bi-Annual Bi-Annual Bi-Annual Bi-Annual Bi-Annual Bi-Annual Bi-Annual Bi-Annual Bi-Annual Bi-Annual Bi-Annual Bi-Annual Bi-Annual Bi-Annual Bi-Annual Bi-Annual Bi-Annual Bi-Annual Bi-Annual Bi-Annual Bi-Annual Bi-Annual Bi-Annual Bi-Annual Bi-Annual Bi-Annual Bi-Annual Bi-Annual Bi-Annual Bi-Annual Annually Bi-Annual Bi-Annual Bi-Annual Bi-Annual Bi-Annual Bi-Annual -
171,769 3.72% 171,769 2.99% 171,769 2.99% 4.82% 7 ,790 7 171,769 3.70% 171,769 7.38% 3.41% 23 1 ,158 4.38% 24 1 ,711 3.31% 6.50% 8 ,885 5 4.13% 6.38% 11 7 ,942 5.48% . 8 18 2 ,827 43 % 24 1 ,711 4 ,932 2 . 0 40 % 4 ,932 2 5.00% 11 7 ,769 4.13% 24 1 ,711 5.0 % . 5 18 2 ,827 34 % 11 7 ,769 8 ,885 5 . 5 39 % 11 7 ,769 . 5 8 ,885 5 39 % 8 ,885 5 8 ,885 5 . 5 6months LIBOR+2% 6 6months LIBOR+2.2% 3 . 3 3 ,913,826 . 8 55 % 86 % 4.80% 6months LIBOR+2% 14 1 ,511
190,290 90,153 214,516 180,822 216,776 218,445 133,650 842,441 112,325 6,597,041 371,584 2,863,794 1,001,873 130,738 234,195 174,343 100,631 113,576
16 % . 0
7,282,456
13,798,435
220

STATEMENT SHOWING WRITTEN OFF LOANS OR ANY OTHER FINANCIAL RELIEF OF FIVE HUNDRED THOUSAND RUPEES OR ABOVE PROVIDED DURING THE PERIOD 01.01.2010 TO 31.12.2010

Annexure II as referred to in Note 10.6 to the financial statements
(Rupees in Million)
Sr. No. Name of Name & Address of the Individuals/Partners/ borrower. written off Directors with NIC No. 2 Leghari Manufacturers (Private) Limited Mauza Aman Garh, Abu Dhabi Road, Rahimyar Khan. 3 Muhammad Tariq Leghari 42201-8659342-1 Rais Muhammad Ramzan 31303-7135419-3 Mrs. Shahida Tariq 42201-1391683-4 Muhammad Ashfaq 33100-3825236-5 Fathers/Husband's name. Outstanding liabilities at the beginning of the year Principal 5 7.841 Interest/ mark-up 6 17.471 Others 7 0.220 Total 8 25.532 9 Principal Interest/ Mark-up written off 10 Other financial relief/ waiver provided 11 16.264 Total (9+10+11)
1 1
4 Khaliq Dad Leghari Rais Allah Buksh W/o Muhammad Tariq Leghari Haji Abdul Razzaq
12 16.264
Mushtaq Fabrics, Shop at Mandar Gali # 2, Rail Bazar Faisalabad. Qadri Sizing Ind. Afghan Abad No.2 Cannal Road Faisalabad Mushtaq Textile Ind. P-786,Abdullahpur, Faisalabad. Bashir Sons Fabrics Kohinoor Street Plot No.590/1,Yousaf Chowk Ali Town,Sargodha Road Faisalabad Mian Oil Traders 241-A, Shoaib Market, General Bus Stand Faisalabad Khalid Tanveer Bhatti P-119, Jinnah Colony, Faisalabad Muhammad Iftikhar House No.27, Khayaban Colony,Usman Street, Near Waqas Chowk Faisalabad. Muhammad Khalid Weaving Factory Raja Road Near Imam Din Memorial Hospital Chak#67/JB, Tehsil: Saddar, Distt: Faisalabad Hanif Corporation Wahid Manzil, Goods Naka Hyderabad
4.893
0.159
1.123
6.175
0.875
0.875
Muhammad Afzal 33100-3937001-5
Muhammad Khalil
3.000
0.223
1.051
4.274
0.874
0.874
Haji muhammad Ishaq 33100-5561859-3 Sharif Ahmad 33100-7864379-5
Ghulam Muhammad
43.160
3.836
12.231
59.227
7.130
7.130
Bashir Ahmad
7.293
0.278
3.127
10.698
2.703
2.703
Mian Faizan Rasool 33100-9313218-1
Mian Qurban Rasool
8.799
0.594
2.081
11.474
1.675
1.675
Khalid Tanveer Bhatti 33100-9286232-1 Muhammad Iftikhar 33100-1297688-9
Mumtaz Ghani
8.734
0.769
0.432
9.935
0.635
0.635
Khawaja Ilyas
Muhammad
3.856
1.193
0.184
5.233
0.943
0.943
Muhammad Khalid 33100-8929597-7
Mr.Shahab Din
2.707
0.286
0.399
3.392
0.539
0.539
10
11
Ghausia Paper & Board 13-KM Lahore Sheikhupura Road
Abdul Haque 42101-1859708-3 Muhammad Iqbal 41303-6665844-3 Muhammad Javaid 41303-25577324-1 Farooq Ahmad 35202-2808536-5 Khalida Begum 35202-9662007-6 Muhammad Rauf 35202-8520317-5 Asghar Ali 35403-7498448-1 Rashid Ahmad 35202-7019298-3 Awais Rashid Ahmad 35202-3515857-5 Naeema Rashid 35202-1 129694-2
Muhammad Hanif Muhammad Hanif Muhammad Hanif Mian Sher Muhammad Farooq Ahmad Farooq Ahmad
3.910
1.393
5.303
0.697
0.697
4.820
4.803
0.040
9.663
4.820
4.843
9.663
12
Asghar Traders Grain Market Sheikhupura
Muhammad Hayat Bashir Ahmad Rashid Ahmad Rashid Ahmad
3.999
2.079
6.078
2.469
2.079
4.548
13
Prime Lubricant (Pvt) Ltd. Mian Iqbal Hussain Mauza Balali Shujabad Road 36302-0474520-7 Multan Rashid Iqbal 36302-5827063-3 Abid Iqbal 36302-41 15508-5 Arif Iqbal 36302-5913513-3 Abdul Karim Abdul Haque Nadir House Branch A25,26 Quid-e-Azam Medical Complex CMH Road Hyderabad Abdul Haque 42101-1859708-3 Muhammad Iqbal 41303-6665844-3 Muhammad Javaid 41303-25577324-1
Mian Shah Muhammad Muhammad Iqbal Sarwar Mian Iqbal Sarwar Mian Iqbal Sarwar Muhammad Hanif Muhammad Hanif Muhammad Hanif
10.614
19.697
1.281
31.592
5.614
1.281
19.697
26.592
14
6.473
3.553
1.005
11.031
2.781
2.781
15
Sunrise Corporation L-21, Block 16-A, Gulistan-eJouhar, Karachi
Mr.Ishaque Siddiqui
Muhammad Siddique
1.490
0.125
1.615
1.490
0.125
1.615
221

Sr. No. Name & Address of the borrower. written off Name of Individuals/Partners/ Directors with NIC No. Fathers/Husband's name. Outstanding liabilities at the beginning of the year Principal Interest/ mark-up Others Total Principal Interest/ Mark-up written off Other financial relief/ waiver provided Total (9+10+11)
16
17
Green Land Traders(PVT) LTD Nicol Road Branch A-116 Block-Q, North Nazimabad Karachi Muhammad Manzar R-338, Sector 15-A/3, Buffer Zone, North Karachi Township Karachi
Ghulam Sarwar Paracha 42301-23372551
Muhammad Hayat
1.908
6.859
0.351
9.118
7.168
7.168
Muhammad Manzar 42101-32412795
Muhammad Idrees
4.300
2.043
0.036
6.379
1.837
1.837
18
Sheikh Trading Corporation Sheikh Naveed Zafar Mouza Mandi Tehsil Nankana 276-73322170 Sahib Distt: Sheikhupura Al Rehman Cotton Mills Qila Sardar Maan Singh Ghaffar Town, Kot Radha Kishan Kasur. SAN Enterprises Pvt.Ltd. Akbar Colony, Link Monenpura Road, Daragowala, Lahore Muhammad Hanif 35102-12352322
Sheikh Zafar Iqbal
0.944
0.393
1.337
0.944
0.393
1.337
19
Naik Muhammad
9.826
1.646
11.472
1.277
1.277
20
Muhammad Shaheer Malik 35202-23930301 uhammad Saleem Malik M 35202-28664089 uhammad Naeem Malik M 35202-2866404N 7 aila Saleem 35202-26924570 ehmina Naeem T 35202-26924528 mtual Rasheed A Deceased. Muhammad Saeed 322-583433166 Muhammad Khalid 363029077877 Muhammad Irshad 36302-46366099 uhammad Aslam M 36302-75530747 uhammad Zahid M Muhammad Tahir
Mohd.Saleem Malik Mohd.Siddique Malik Mohd.Siddique Malik Mohd.Saleem Malik Mohd.Naeem Malik
13.664
24.814
0.198
38.676
24.996
24.996
21
Bahauddin Weaving Industries (Pvt) Ltd. Sameejabad-II, Multan *
Abdul Salam Abdul Salam Abdul Salam Abdul Salam Abdul Salam Abdul Salam Muhammad Ismail W/O Mian Ghulam Rasool S/O Mian Ghulam Rasool S/O Muhammad Yaqoob S/O Muhammad Zafar
5.547
4.740
0.596
10.883
1.547
0.596
4.740
6.883
22
Punjab Plastic Industries Mian Ghulam Rasool (Late) Mauza Dogran Tehs & Distt. 33081 800251 Multan Mst. Muniran Kausar Mr. Ghulam Sarwar Mr. Muhammad Niaz Amjad Iqbal Khan Afridi 36302-04859283
3.106
4.282
0.060
7.448
2.561
4.342
6.903
23
Ramzan & Sons Cotton Ginners Okanwala Road, Chichawatni Distt: Sahiwal
Muhammad Yousaf 36502-15185741 uhammad Yousaf M 36502-0344713A 1 hmed Babar 36502-81767883 amar Rizwan A 36502-82822383 ll R/o H.No.37-B Civil Line A Sahiwal
Muhammad Ramzan Muhammad Ramzan Muhammad Ramzan Muhammad Ramzan
0.466
1.745
0.277
2.488
0.765
0.765
24
Colony Sarhad Textile Mills Nowshehra, Khyber Pakhtunkha **
Sohail Farooq Sheikh 37405-2304641Farrukh Haroon Rashid 5 34602-6492875N 7 eelam Sohail Sheikh 37405-5387118N 4 adia Sohail Sheikh 37405-5517109N 4 azifa Sohail Sheikh 37405-3726958Miss Surriya Sohail Sheikh 6 37405-3727908S 6 hahid Aziz (NIT Nominee)
Sub Total: Mian Farooq Ahmad Sheikh Rashid Ahmad Mussarat Sohail Farooq Sheikh Kh. Muhammad Suleman Syed Shaheen Sohail Farooq Sheikh Grand Total:
161.93 9 5.589
101.33 5 54.867
26.338 282.04 6
289.02 3 342.50 2
19.445 5.589
1.877 -
107.37 8 336.91 3
128.70 0 342.50 2
166.93 9
156.20 2
308.38 4
631.52 5
25.034
1.877
444.29 1
471.20 2
* Account settled under SBP Circular No. 29 Dated 15-10-2002 ** This party pertains to Ex-NDFC

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Consolidated Financial Statements of NBP and its Subsidiary COmpanies

Directors Report on Consolidated Financial Statements

Pattern of Share holding

Qamar Hussain President Date: March 01, 2011

Independent Auditors Report to the Members

Anjum Asim Shahid Chartered Accountants Rahman

Consolidated Profit and LossFinancial Position Consolidated Statement of Account

Chairman & President Chairman & President

Director Director Director

For the year ended December 31, 2010

Consolidated Cash Flow Statement

(556,992) 127,722 22,086 (20,684) (349) 163 (428,054)

(1,060,051) 106,431 12,427 (32,112) (2,437) 736 (975,006)

(91,041,973) 9,140,800 1,067,273 (2,757,917) (209,288) 63,185 (83,737,920)

(47,836,997) 10,969,303 1,896,817 (1,776,322) (30,000) 13,997 (36,763,202)

(302) (67,769) (68,071) 12,773 (8,226) 1,701,088 1,692,862

(318) (93,853) (94,171) (256) 5,504 1,692,863 1,698,367

(27,310) (8,060,510) (8,087,820) (21,955) 472,645 32 145,390,674 145,863,319

(25,915) (5,820,338) (5,846,253) 1,097,011 (706,425) 146,097,099 145,390,674

Chairman & President

Consolidated Statement of Comprehensive Income

Profit after taxation for the year Other comprehensive income:

215,963 (21) 215,942

207,108 (826) 206,282

Share holders of the bank Non-controlling interest

17,787,349 (70,899) 17,716,450

18,547,822 (1,769) 18,546,053

Chairman & President

Consolidated Statement of Changes in Equity

17,450,81 1 17,450,81 1 123,93 4 (1,821,185 )

17,450,81 1 1,097,01 1 18,547,82 2 123,93 4 -

17,449,04 2 1,097,01 1 18,546,05 3 123,93 4 -

17,809,30 4 17,809,30 4 117,73 8 (1,756,321 )

17,809,30 4 (21,955) 17,787,34 9 117,73 8 -

17,738,40 5 (21,955) 17,716,45 0 117,73 8 -

(2,690,927 ) (8,072,777 ) 67,103,61 1

7,507,20 106,185,741 17,100,88 1 6

Chairman & President

Notes to the Consolidated Financial Statements

Notes to the Consolidated Financial Statements

Notes to the Consolidated Financial Statements

Notes to the Consolidated Financial StatementsStatements Notes to the Consolidated Financial

Notes to the Consolidated Financial Statements

Notes to the Consolidated Financial Statements

Notes to the Consolidated Financial Statements

Notes to the Consolidated Financial Statements

Notes to the Consolidated Financial Statements

Notes to the Consolidated Financial Statements

201 0 Rupees in '000 9 200 ----- R upees in '00 0 -----

11,277,999 2,690,449 1,006 ,015 13,968,448

7,169,663 2,568,259 1 ,15 3,0 00 9,737,922

8.1 Foreign currency lendings account P articu lars of collection - gross

In loc al curre ncy

23 ,18 4,67 1 15,324,162 23 ,18 4,67 1 9,645,189

19,793,176 17,826,903 19,793,176 14,723,829

1 200 5 ,3 7 7 ,6 6 201 0 ----- Rupees in '000 9 5 6 ,1 7 6 1 8 ,3 -----

under repu rcha se agreem ent lendings am oun t to R s. 22,184 m illion

carry m ark-u p a t rates ra nging from 11 .20% to 18 .5% per ann um

5,621,96 8 24,766,77 6 30,388,74 4 30,743,36 8

4,070,61 5 24,340,80 6 28,411,42 1 28,786,397

Notes to the Consolidated Financial Statements

5,278,69 3 732,25 3 533,67 7 6,544,62 3

1,987,27 2 221,27 5 170,38 3 2,378,93 0