| Meezan Bank Ltd - 2004 |
============================================================================================== BALANCE SHEET AS AT DECEMBER 31, 2004 ============================================================================================== Note 2004 2003 Rupees in '000 ============================================================================================== ASSETS Cash and balances with treasury banks 7 2,623,588 1,042,285 Balances with other banks 8 1,751,083 683,596 Due from financial institutions - - Investments 9 1,429,053 1,211,667 Financings 10 12,339,745 7,397,078 Other assets 11 1,349,184 689,226 Operating fixed assets 12 204,737 78,537 Deferred taxation - - 19,697,390 11,102,389 LIABILITIES Bills payable 13 196,145 169,062 Due to financial institutions 14 2,862,139 988,964 Deposits and other accounts 15 13,769,807 7,756,862 Sub-ordinated loan - - Liabilities against assets subject to finance leases - - Other liabilities 16 770,631 429,790 Deferred taxation 17 286 9,236 17,599,008 9,353,914 NET ASSETS 2,098,382 1,748,475 REPRESENTED BY Share capital 18 1,346,017 1,064,045 Capital reserves 19 256,578 351,444 Revenue reserves 20 258,325 221,073 1,860,920 1,636,562 Advances against issue of right shares 18.1.1 192,312 - Surplus on revaluation of investments 21 45,150 111,913 2,098,382 1,748,475 CONTINGENCIES AND COMMITMENTS 22 ============================================================================================== ============================================================================================== PROFIT AND LOSS ACCOUNT FOR THE YEAR ended December 31, 2004 ============================================================================================== Notes 2004 2003 Rupees in '000 ============================================================================================== Profit/return on financings, investments and placements earned 23 534,400 375,567 Return on deposits and other dues expensed 24 250,393 182,354 Net spread earned 284,007 193,213 Provision / (reversal) of provision against non-performing financings (net) 10.7 16,991 (17,769) Provision for diminution in value of investments 9.2 1,750 1,995 Bad debts written off directly 10.8 - - 18,741 (15,774) Net spread after provisions 265,266 208,987 OTHER INCOME Fee, commission and brokerage income 100,739 53,869 Capital gain on sale of investments 81,223 105,339 Dividend income 108,592 114,625 Unrealised gain on held for trading investments 42,081 - Income from dealing in foreign currencies 26,830 5,215 Other income 25 5,628 8,262 Total other income 365,093 287,310 630,359 496,297 OTHER EXPENSES Administrative expenses 26 409,296 255,449 Other provisions / write offs - - Other charges 27 185 20 Total other expenses 409,481 255,469 220,878 240,828 Extraordinary / unusual items - - PROFIT BEFORE TAXATION 220,878 240,828 Taxation - for the year 28 5,470 5,731 - deferred 28 (8,950) 21,284 (3,480) 27,015 PROFIT AFTER TAXATION 224,358 213,813 Unappropriated profit brought forward 12,073 630 236,431 214,443 APPROPRIATIONS AND TRANSFERS Transferred to Statutory reserve (44,872) (42,763) Reserve for issue of bonus shares - (106,405) Revenue reserves - - Proposed final cash dividend (2003: Rs. 0.50) per share on 134,601,710 (2003: Rs. 106,404,514) ordinary shares - (53,202) (44,872) (202,370) Unappropriated profit 191,559 12,073 Basic earnings per share - (Rupees) 29 1.67 1.59 ============================================================================================== ============================================================================================== CASH FLOW STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2004 ============================================================================================== Note 2004 2003 Rupees in '000 ============================================================================================== Profit before taxation 220,878 240,828 Dividend income (108,592) (114,625) 112,286 126,203 Adjustments for non-cash charges Provision / (reversal) of provision against non- performing financings (net) 16,991 (17,769) Provision for diminution in value of investments 1,750 1,995 Unrealised gain on held for trading investments (42,081) - Gain on sale of shares in a subsidiary company (450) - Gain on sale of property, equipment and others (704) (1,391) Depreciation 43,707 19,066 Amoritsation 1,093 533 20,306 2,434 132,592 128,637 (Increase) / decrease in operating assets Net investments in held for trading securities 244,474 (147,393) Financings (4,959,658) (3,847,121) Other assets (656,842) 204,228 (5,372,026) (3,790,286) Increase in operating liabilities Bills payable 27,083 122,220 Due to financial institutions 1,873,175 977,133 Deposits and other accounts 6,012,945 2,677,384 Other liabilities 393,288 179,186 8,306,491 3,955,923 3,067,057 294,274 Income tax paid (7,112) (106,736) NET CASH FLOW FROM OPERATING ACTIVITIES 3,059,945 187,538 CASH FLOW FROM INVESTING ACTIVITIES Net investments in - held to maturity securities (120,893) (20,263) - available for sale securities (90,329) (345) - unquoted subsidiary company - (67,900) - quoted associated undertakings 4,080 (132,939) - unquoted associated undertakings (286,000) 12,900 Sale proceeds on disposal of shares in an unquoted subsidiary company 5,300 - Dividends received 107,118 140,257 Investments in operating fixed assets (172,613) (63,379) Sale proceeds on disposal of property, equipment and others 2,317 2,576 Net cash outflow from investing activities (551,020) (129,093) CASH FLOW FROM FINANCING ACTIVITIES Amount received against issue of right shares 192,312 - Dividend paid (52,447) (49,987) Net cash flow from financing activities 139,865 (49,987) Net increase in cash and cash equivalents 2,648,790 8,458 Cash and cash equivalents as at January 1 30 1,725,881 1,717,423 Cash and cash equivalents as at December 31 30 4,374,671 1,725,881 ============================================================================================== =================================================================================================================================
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED DECEMBER 31, 2004
=================================================================================================================================
Capital reserves Revenue reserves
Share Share Statutory Reserve General Unappro Total
capital premium reserve for issue reserve -priated
account of bonus profit
shares
(Rupees '000)
=================================================================================================================================
Balance as at January 1, 2003 1,001,454 33,333 168,943 62,591 209,000 630 1,475,951
Issue of bonus shares 62,591 - - (62,591) - - -
Net profit after taxation for the yea - - - - - 213,813 213,813
Transfer to statutory reserve - - 42,763 - - (42,763) -
Transfer to reserve for issue of
bonus shares - - - 106,405 - (106,405) -
Proposed dividend - - - - - (53,202) (53,202)
Balance as at December 31, 2003 1,064,045 33,333 211,706 106,405 209,000 12,073 1,636,562
Issue of bonus shares 281,972 (33,333) - (106,405) (142,234) - -
Net profit after taxation for the yea - - - - - 224,358 224,358
Transfer to statutory reserve - - 44,872 - - (44,872) -
Balance as at December 31, 2004 1,346,017 - 256,578 - 66,766 191,559 1,860,920
=================================================================================================================================NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 20041. LEGAL STATUS AND NATURE OF BUSINESS The Bank was incorporated in Pakistan on January 27, 1997 as a public limited company under the Companies Ordinance, 1984 and its shares are quoted on the Karachi Stock Exchange. The Bank was registered as an 'Investment Finance Company' on August 8, 1997 and carried on the business of investment banking as permitted under SRO 585(I)/87 dated July 13, 1987 in accordance and in conformity with the principles of Islamic Shariah. A 'certificate of commencement of business' was issued to the Bank on September 29, 1997. The Bank was granted a 'Scheduled Islamic Commercial Bank' licence on January 31, 2002 and formally commenced operations as a scheduled Islamic commercial bank with effect from March 20, 2002 on receiving notification in this regard from the State Bank of Pakistan (SBP) under section 37 of the State bank of Pakistan Act, 1956. Currently, the Bank is engaged in commercial, consumer and investment banking activities. The Bank was operating through sixteen branches as at December 31, 2004 (2003: ten). Its registered office is at 3rd Floor, PNSC Building, Moulvi Tamizuddin Khan Road, Karachi. 2. BASIS OF PRESENTATION The Bank provides financing mainly through murabaha, ijarah, musharika and export refinance under Islamic export refinance scheme. Under murabaha the goods are purchased and are then sold to the customers on credit. The purchases and sales arising under these arrangements are not reflected in these financial statements as such but are restricted to the amount of facility actually utilised and the appropriate portion of profit thereon. The income on such financings is recognised in accordance with the principles of Islamic Shariah, however income, if any, received which does not comply with the principles of Islamic Shariah is recognised as charity payable if so directed by the Executive Committee of the Shariah Supervisory Board. 3. STATEMENT OF COMPLIANCE 3.1. The financial statements have been prepared in accordance with the requirements of the Companies Ordinance, 1984 (the Ordinance), the Banking Companies Ordinance, 1962 (the Ordinance), the directives issued by the SBP including format for financial statements of Bank issued by SBP through BSD Circular No. 36 dated October 10, 2001, and the International Accounting Standards (IASs) issued by the International Accounting Standards Committee (IASC) and interpretations issued by Standing Interpretation Committee of IASC (the interpretations), as adopted in Pakistan. However, the requirements of these Ordinances and the directives of the SBP have been followed in case where their requirements are not consistent with the requirements of the IASs and the interpretations. 3.2. The SBP through its BSD Circular letter No. 10 dated August 26, 2002 has deferred the implementation of IAS 39, 'Financial Instruments: Recognition and Measurement' and IAS 40, 'Investment Property' for banks in Pakistan. Accordingly, the requirements of those IASs have not been considered in preparation of these financial statements. 4. BASIS OF MEASUREMENT These financial statements have been prepared under the historical cost convention except that investments are valued at market rates in accordance with the requirements of SBP's BSD Circular No. 10 dated July 13, 2004 as amended through BSD Circular No. 11 dated August 4, 2004 and BSD Circular No. 14 dated September 13, 2004. 5. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 5.1. CASH AND CASH EQUIVALENTS Cash and cash equivalents comprise of cash and balances with treasury banks and balances with other banks in current and deposit accounts. 5.2. REVENUE RECOGNITION (i) Dividend income is recognised when the Bank's right to receive payment is established. (ii) Purchase and sale of investments are recorded on the dates of contract. Gains and losses on sale of investments are also recorded on those dates. (iii) The Bank follows the finance method in recognising income on ijarah contracts. Under this method the unearned income i.e. the excess of aggregate ijarah rentals over the cost of the asset under ijarah facility is deferred and then amortised over the term of the ijarah, so as to produce a constant rate of return on net investment in the ijarah. Gains/losses on termination of ijarah contracts, documentation charges, front-end fees and other ijarah income are recognised as income on a receipt basis. Consistent with prior years, income on ijarah is recognised from the date of delivery of the respective assets to the mustajir. (iv) l basis, except the profit required to be suspended in compliance with the prudential regulations issued by the SBP which is recorded on receipt basis. Consistent with prior years, profit on murabaha is recognised on delivery of goods to the customer. (v) Commission on letters of credit, acceptances and guarantees is recognised on receipt basis, except for commission on guarantees in excess of Rs. 50,000 which is recognised over the period of the guarantee. 5.3. FINANCINGS Financings are stated net of specific and general provisions against non-performing financings, if any, which are charged to the profit and loss account. The Bank determined provisions against financings on a prudent basis in accordance with the prudential regulations issued by the SBP. Financings are written off when it is considered that there is no realistic prospect of recovery. 5.4. INVESTMENTS 5.4.1. THE BANK CLASSIFIES ITS INVESTMENTS AS FOLLOWS - Held for trading These are investments acquired principally for the purpose of generating profit from short-term fluctuations in price. - Held to maturity These are investments with fixed or determinable payments and fixed maturity and the Bank has positive intent and ability to hold to maturity. - Available for sale These are investments which do not fall under the 'held for trading' or 'held to maturity' categories. The Bank has reclassified its investment in the aforementioned categories on September 30, 2004 to comply with the requirements of BSD Circular No. 11 dated August 4, 2004. 5.4.2. To comply with the requirements contained in BSD Circulars 10, 11 and 14 dated July 13, August 4 and September 24, 2004 respectively the Bank values its investments as follows: - Quoted securities, excluding investments categorised as 'held to maturity' securities and investments in subsidiaries and associates, are stated at revalued amounts. - Unquoted securities including investments in associates and subsidiaries continue to be stated at cost less provision for impairment, if any. - Investments in quoted associates are carried at cost. Previously, these investments were stated at revalued amounts in accordance with BSD Circular No. 20 dated August 4, 2000. The reason and effect of the aforementioned change in accounting policy is stated in note 6.1. - Investments in securities categorised as 'held to maturity' are carried at amortised cost. Previously such quoted investments were stated at revalued amount and the unquoted investments were stated at cost. This change in accounting policy has not resulted in any change in the profit for the current year. 5.4.3. Any surplus/deficit arising as a result of revaluation of quoted securities categorised as 'available for sale' is presented below the shareholders' equity in the balance sheet. 5.4.4. During the year the Bank has changed its accounting policy in respect of accounting for unrealised surplus/deficit arising on revaluation of 'held for trading' investments portfolio. According to the revised policy, surplus/deficit arising on revaluation of 'held for trading' securities is credited / charged to the profit and loss account. Previously any surplus / deficit arising as a result of revaluation of investments was presented below shareholders' equity in the balance sheet in accordance with BSD Circular No. 20 dated August 4, 2000. The reason and effect of change in this accounting policy is stated in note 6.1. 5.4.5. The Bank has also changed its accounting policy in respect of accounting for unrealised surplus / deficit arising on revaluation of 'held to maturity' investments portfolio. 'Held to maturity' investments are now carried at amortised cost. Previously any surplus / deficit arising as a result of revaluation of investments was presented below shareholders' equity in the balance sheet in accordance with BSD Circular No. 20 dated August 4, 2000. This change in accounting policy has no effect on these financial statements. 5.4.6. Cost of investment is determined on a moving average basis. The cost of acquisition 'dealing securities' (i.e. quoted securities purchased and sold on the same day) is not considered for calculating the 'moving average cost' of other quoted securities (i.e. quoted securities sold after the date of purchase). 5.4.7. Impairment loss is recognised whenever the carrying amount of an investment exceeds its expected recoverable amount. An impairment loss is recognised in income currently. 5.5. OPERATING FIXED ASSETS 5.5.1. TANGIBLE ASSETS Operating fixed assets are stated at cost less accumulated depreciation. Depreciation is charged to the profit and loss account applying the straight line method whereby the cost of an asset is written off over its estimated service life. The full annual rate of depreciation is applied on the cost of additions while no depreciation is charged on assets deleted during the year. Capital work in progress is stated at cost. Items of fixed assets costing Rs. 10,000 or less are not capitalised and are charged off in the year of purchase. When the carrying amount of an asset is greater than its estimated recoverable amount it is written down immediately to its recoverable amount. Maintenance and normal repairs are charged to income as and when incurred. Profit or loss on disposals of fixed assets is included in income currently. 5.5.2. INTANGIBLE ASSETS Intangible assets comprise of computer software. Accounting for such assets is on the same basis as for tangible fixed assets owned by the Bank. 5.6. CURRENT The charge for taxation is based on expected taxable income for the year at current rates of taxation, and any adjustments to tax payable in respect of previous years, after taking into consideration available tax credits, rebates and tax losses etc. DEFERRED The Bank accounts for deferred taxation using the balance sheet liability method on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available and the credits will be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realised. 5.7. STAFF RETIREMENT BENEFITS DEFINED BENEFIT PLAN The Bank operates a funded gratuity scheme for all its permanent employees who have completed the minimum qualifying eligible service of one year. The scheme was approved by the tax authorities in April 2000 and the last actuarial valuation was conducted as at December 31, 2004. The projected unit credit method was used for actuarial valuation. Actuarial gains or losses are recognised in accordance with the actuary's recommendation. DEFINED CONTRIBUTION PLAN The Bank operates a recognised contributory provident fund for all permanent employees. Equal monthly contributions are made, both by the Bank and the employees, to the fund at a rate of 10% of basic salary. 5.8. FOREIGN CURRENCIES Foreign currency transactions are recorded in rupees at exchange rates prevailing on the date of transaction. Assets, liabilities and contingencies and commitments in foreign currencies except forward contract other than contracts with the SBP at the year end are reported in rupees at exchange rates prevalent on the balance sheet date. Forward contracts other than contracts with the SBP relating to the foreign currency deposits are valued at forward rates applicable to the respective maturities of the relevant foreign exchange contract. Forward contracts with the SBP relating to foreign currency deposits are valued at spot rate prevailing at the balance sheet date. Exchange gains and losses are included in income currently. 5.9. PROVISIONS AND CONTINGENT ASSETS AND LIABILITIES Provisions are recognised when the Bank has a present legal or constructive obligation arising as a result of past events and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount of the obligation can be made. Contingent assets are not recognised, and are also not disclosed unless an inflow of economic benefits is probable and contingent liabilities are not recognised, and are disclosed unless the probability of an outflow of resources embodying economic benefits is remote. Acceptances comprise undertakings by the Bank to pay bills of exchange drawn on customers. The Bank expects most acceptances to be settled simultaneously with the reimbursement from the customers. Acceptances are accounted for as off-balance sheet transactions and are disclosed as contingent liabilities and commitments. 5.10. RELATED PARTY TRANSACTIONS Transactions between the Bank and its related parties are carried out on arm's length basis substantiated in a manner set out in the note 40.2. 5.11. OFFSETTING Financial assets and financial liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis, or realise the asset and settle the liability simultaneously. 5.12. COMPENSATED ABSENCES The Bank recognises liability in respect of employees compensated absences in the period in which these are earned upto the balance sheet date. 6. REASON AND EFFECT OF CHANGES IN ACCOUNTING POLICY 6.1. Effective September 30, 2004 the Bank has changed its accounting policy in respect of matters stated in notes 5.4.2 and 5.4.4 above. These changes have been made to comply with the requirements stated in BSD Circulars 10, 11 and 14 dated July 13, August 4 and September 24, 2004 respectively issued by SBP. The effects of respective changes are presented below separately. - Had the accounting policy not been changed with respect to valuation of investments in quoted associates, the investment in quoted associates and the unrealised surplus on revaluation of investments, as presented below the shareholders equity in the balance sheet, would have been higher by Rs. 128.484 million. - Had the accounting policy not been changed with respect to accounting for unrealise surplus arising on revaluation of investments categorised as 'held-for-trading', the profit for the year ended December 31, 2004 would have been lower by Rs. 42.081 million and surplus on revaluation of investments would have been higher by the same amount. In accordance with the allowed alternative treatment specified in International Accounting Standards (IAS) 8 'Net Profit or Loss for the Period, Fundamental Errors and Changes in Accounting Policies' the effects of the aforementioned changes in accounting policy have been recognised in the current period. As the Bank has reclassified its portfolio on September 30, 2004 in accordance with the requirements of BSD Circular No. 11 dated August 4, 2004 therefore it is not practical to state the 'held for trading' portfolio on the same basis for the years ended December 31, 2002 and 2003. However, for the purpose of disclosure, the 'held for trading' securities portfolio as at December 31, 2002 and December 31, 2003 has been considered as 'held for trading' portfolio as required by the SBP's aforementioned Circulars. The restated proforma information as required by the aforementioned IAS has been presented in notes 6.2 and 6.3 below. 6.2. EXTRACT OF PROFIT AND LOSS ACCOUNT ===============================================================================
Proforma
2004 2003 2004 2003
Rupees in '000
===============================================================================
Profit after taxation for the
period before incorporating
the effects of changes in
accounting policy 182,277 213,813 182,277 213,813
Cumulative effects of changes
in accounting policy as stated above 42,081 - 2,358 (295)
Profit after taxation for the
year as restated 224,358 213,813 184,635 213,518
===============================================================================6.3. EXTRACT OF STATEMENT OF UNAPPROPRIATED PROFIT===============================================================================
Proforma
2004 2003 2004 2003
Rupees in '000
===============================================================================
Opening balance of
unappropriated profit as
previously reported 12,073 630 12,073 630
Effects of changes in
accounting policy
as stated above - - 39,723 40,018
statutory reserve - - (7,945) (8,004)
Opening balance of
unappropriated profit as
restated 12,073 630 43,851 32,644
Profit after taxation for the year 224,358 213,813 184,635 213,518
236,431 214,443 228,486 246,162
Transfer to statutory reserve (44,872) (42,763) (36,927) (42,704)
Transfer to reserves for issue
of bonus shares - (106,405) - (106,405)
Proposed dividend - (53,202) - (53,202)
Unappropriated profit 191,559 12,073 191,559 43,851
===============================================================================7. CASH AND BALANCES WITH TREASURY BANKS============================================================================
2004 2003
Notes Rupees in '000
============================================================================
In hand
- local currency 266,600 95,870
- foreign currency 59,858 47,870
With the SBP in
- local currency current accounts 7.1 2,199,745 812,868
- foreign currency deposit accounts 7.1 97,000 85,292
With National Bank of Pakistan in
- a local currency current account 385 385
2,623,588 1,042,285
============================================================================7.1. These represent local and foreign currency amounts required to be maintained by the Bank with the SBP as stipulated by it (the SBP).8. BALANCES WITH OTHER BANKS ============================================================================
2004 2003
Notes Rupees in '000
============================================================================
In Pakistan
- on current accounts 21,818 13,335
- on deposit accounts 8.1 164,716 388,549
Outside Pakistan
- on current accounts 817,793 73,198
- on deposit accounts 746,756 208,514
1,751,083 683,596
============================================================================8.1. It includes Rs 4.715 million (2003: Rs 188.549 million) held in a deposit account with an associated undertaking. The depositee has undertaken to utilise such funds in accordance with the principles of Islamic Shariah.9. INVESTMENTS ==================================================================================================================================
2004 2003
Held by Given as Total Held by Given as Total
the Bank collateral the Bank collateral
NOTES Rupees in'000
==================================================================================================================================
Investments by types
Held for trading securities
9.3 178,817 - 178,817 423,291 - 423,291
Held to maturity securities
9.4 178,290 - 178,290 57,397 - 57,397
Available for sale securities
9.5 221,244 - 221,244 130,915 - 130,915
In related parties
Subsidiary (unquoted)
9.6 63,050 - 63,050 67,900 - 67,900
Associates (quoted)
9.7 351,746 - 351,746 355,826 - 355,826
Associates (unquoted)
9.8 103,000 - 103,000 69,000 - 69,000
Advance against issue of
certificates by an associate 180,000 - 180,000 - - -
Advance against issue of
preference shares of Falcon
Greenwood (Private) Limited
(an associate) 72,000 - 72,000 - - -
1,348,147 - 1,348,147 1,104,329 - 1,104,329
Add: Surplus on revaluation of
Investments
- 'Held for trading' taken
to profit and loss
account 42,081 - 42,081 - - -
-'Held for trading' taken
to surplus shown
below equity - - - 39,723 - 39,723
-'Available for sale' 45,150 - 45,150 72,190 - 72,190
1,435,378 - 1,435,378 1,216,242 - 1,216,242
Less: Provision for diminution
in value of investments -
9.2 6,325 - 6,325 4,575 - 4,575
1,429,053 - 1,429,053 1,211,667 - 1,211,667
==================================================================================================================================9.1. INVESTMENTS BY SEGMENTS===========================================================================
2004 2003
Note Rupees in '000
===========================================================================
Fully paid up ordinary shares
- Listed companies 596,207 754,432
- Unlisted companies 166,050 136,900
Musharika term finance certificates 30,600 30,600
Bonds 9.4 178,290 57,397
Units of an open end fund 125,000 125,000
Advance against issue of certificates 9.1 180,000 -
Advance against issue of preference shares 72,000 -
1,348,147 1,104,329
Add: Surplus on revaluation of investments
- 'Held B15for trading' taken to profit and loss
account 42,081 -
-'Held for trading' taken to surplus shown
below equity - 39,723
-'Available for sale' 45,150 72,190
1,435,378 1,216,242
Less: Provision for diminution in value of
investments 9.2 6,325 4,575
1,429,053 1,211,667
===========================================================================9.1.1. This represents advance against issue of certificates in a closed end fund. These certificates were subsequently quoted on the Karachi Stock Exchange.9.2. PARTICULARS OF PROVISION ===========================================================================
2004 2003
Rupees in '000
===========================================================================
Opening balance 4,575 2,580
Charge for the year 1,750 1,995
Reversals - -
1,750 1,995
Closing balance 6,325 4,575
===========================================================================9.2.1. This provision is against investment in an unquoted associated undertaking.9.3. HELD FOR TRADING SECURITIES The Bank holds investments in ordinary shares of Rs 10 each, unless stated otherwise, in the following listed investee companies: ========================================================================================================================
Name of the investee company 2004 2003 2004 2003
Cost
Number of shares Rupees in '000
========================================================================================================================
Textile composite
Nishat (Chunian) Limited 50,000 - 3,910 -
Legler Nafees Denim Mills Limited - 500,000 - 6,250
Cement
DG Khan Cement Limited 60,000 - 2,870 -
Lucky Cement Limited - 100,000 - 2,481
Refinery
National Refinery Limited 26,000 26,000 4,160 3,524
Power generation and distribution
Hub Power Company Limited 94,500 1,240,000 3,357 46,913
Southern Electric Power Company Limited - 100,000 - 2,091
Oil and gas marketing
Pakistan State Oil Company Limited 129,500 406,900 35,018 112,928
Sui Northern Gas Pipelines Limited - 969,012 - 36,932
Shell Pakistan Limited 8,000 17,500 3,354 7,337
Sui Southern Gas Company Limited 39,712 310,212 1,168 8,543
Oil and gas exploration
Pakistan Oilfields Limited 55,000 97,500 11,818 21,215
Oil and Gas Development Company Limited - 451,987 - 14,468
Automobile assembler
Agriautos Industries Limited 180,000 - 8,865 -
Technology and communication
Pakistan Telecommunication Company Limited (A) 953,500 840,000 38,466 29,461
World Call Payphone Limited - 105,375 - 1,621
Fertilizer
Engro Chemical Pakistan Limited - 522,001 - 45,145
Fauji Fertilizer Bin Qasim Company Limited - 100,000 - 1,765
Fauji Fertilizer Company Limited 546,365 481,300 53,854 41,926
Chemical
ICI Pakistan Limited - 25,000 - 2,130
Paper and board
Packages Limited 81,712 56,712 11,026 5,387
Food and personal care products
Unilever Pakistan Limited - note 9.3.1 980 24,475 874 29,432
Miscellaneous
Tri-Pack Films Limited 900 44,000 77 3,742
178,817 423,291
========================================================================================================================9.3.1. THE NOMINAL VALUE OF THESE SHARES IS Rs 50 EACH9.4. HELD TO MATURITY SECURITIES ===================================================================================================
Name of the investee entity 2004 2003 2004 2003
Cost
NOTES Number of bonds Rupees in '000
===================================================================================================
Bonds
Qatar Global Sukuk Bonds (Sukuk - Qatar) 9.4.1 1,000,000 1,000,000 59,430 57,397
Dubai Sukuk Bonds (Sukuk - Dubai) 9.4.2 2,000,000 - 118,860 -
178,290 57,397
===================================================================================================9.4.1. The paid up value of Sukuk - Qatar is US$ 1 per bond. The return on Sukuk - Qatar is on the basis of London inter-bank offered rate plus a fixed credit spread of forty basis points. These bonds will mature in 2010.9.4.2. The paid up value of Sukuk - Dubai is US$ 1 per bond. The return on Sukuk - Dubai is on the basis of London inter-bank offered rate plus a fixed credit spread of forty-five basis points. These bonds will mature in 2009. 9.5. AVAILABLE FOR SALE SECURITIES The Bank holds investments in ordinary shares and musharika term finance certificates (MTFCs) of a nominal value of Rs 10 each, unless stated otherwise, in the following listed investee companies: ==============================================================================================================
Name of the investee company 2004 2003 2004 2003
Number of shares/ Cost
Notes certificates Rupees in '000
==============================================================================================================
Ordinary shares
Auto Assembler
Agriautos Industries Limited 120,000 - 5,929 -
Powr generation and distribution
Hub Power Company Limited 1,500,000 1,500,000 49,000 54,194
Oil and gas marketing
Pakistan State Oil Company Limited 100,280 280 27,401 33
Shell Pakistan Limited 45,000 45,000 15,305 15,305
Sui Southern Gas Company Limited 1,100,000 - 30,107 -
Oil and gas exploration
Pakistan Oilfields Limited 100,000 - 21,488 -
Technology and communication
Pakistan Telecommunication Company Limited (A) 476,500 160,000 15,555 4,323
Fertilizer
Fauji Fertilizer Company Limited 172,500 50,000 11,537 2,733
Paper and Board
Packages Limited 30,000 30,000 1,829 1,829
Food and personal care products
Unilever Pakistan Limited 9.3.1 14,000 24,540 12,493 21,898
MTFCs
Sitara Chemicals Limited 9.5.1 6,120 6,120 30,600 30,600
221,244 130,915
==============================================================================================================9.5.1. The paid up value of MTFCs is Rs 5,000 per certificate. The return on MTFCs is on Musharika basis and will mature in 2007.9.6. SUBSIDIARY (UNQUOTED) =============================================================================================================================================================
Particulars 2004 2003 2004 2003 Percentage Break up Latest Name of
of equity value per available the chief
holding share financial executive
statements
NOTES Number of shares Rupees in '000 % Rupees
=============================================================================================================================================================
Al-Meezan Investment December Mr.
Management Limited 650,000 700,000 63,050 67,900 65 258.09 31, 2004* Muhammad
(ordinary shares) 9.6.1 & 9.6.2 Shoaib
Total 63,050 67,900
* Half yearly unaudited financial statements.
=============================================================================================================================================================9.6.1. THE NOMINAL VALUE OF THESE SHARES IS Rs 100 EACH9.6.2. During the year the Bank has disposed off 5% holding in the investee company reducing its holding to 65% in that investee company. 9.7. ASSOCIATES (QUOTED) The Bank holds investments in ordinary shares / units of Rs 10 each, unless stated otherwise, in the following listed investee entities: ================================================================================================
Name of the investee entity 2004 2003 Percentage 2004 2003
of direct
equity
holding
Number of shares/ % Rupees in '000
Note certificates / units
================================================================================================
Ordinary shares
Closed end mutual fund
Al-Meezan Mutual Fund Limited 1,784,800 1,965,500 2.00 12,150 16,230
Modaraba
Fayzan Manufacturing Modaraba 21,457,500 21,457,500 23.84 214,596 214,596
Units of an open-end fund
Meezan Islamic Fund 9.7.1 2,841,095 2,500,000 N/A 125,000 125,000
351,746 355,826
================================================================================================9.7.1. The nominal value of these units is Rs 50 each.9.7.2. Investments in quoted associates have a market value of Rs 480.230 million (2003: Rs 400.178 million). 9.8. ASSOCIATES (UNQUOTED) The Bank holds investments in ordinary shares of Rs 10 each, unless stated otherwise, in the following unlisted investee companies: ======================================================================================================================================
Particulars 2004 2003 2004 2003 Percentage Break up Latest available Name of
of equity value per financial the chief
holding shares statements executive
NOTES Number of shares/ Rupees in'000 % Rupees
======================================================================================================================================
Plexus (Private)
Limited 1,499,980 1,499,980 15,000 15,000 50 5.78 December 31, Mr. Arif-
2004* ul-Islam
Faysal Management
Services (Private)
Limited 9.8.1 540,000 540,000 54,000 54,000 30 132.67 2004* S. Tirmizey
Blue Water (Private) December 31, Mr. Shuja-
Limited 9.8.1 90,000 - 9,000 - 30 100 2004* ul-Mulk
Falcon Greenwood
(Private) Limited - 250,000 - 25,000 - 25 100 December 31, Mr. Abbas
9.8.1 2004* Khan
Total 103,000 69,000
*Unaudited
======================================================================================================================================9.8.1. THE NOMINAL VALUE OF THESE SHARES IS Rs 100 EACH10. FINANCINGS ===============================================================================
2004 2003
NOTES Rupees in '000
===============================================================================
In Pakistan
- Murabaha financings 4,856,083 4,678,811
- Net investment in ijarah 10.2 3,221,480 1,440,353
- Export refinance under Islamic scheme - (Istisna) 2,705,274 988,964
- Financings against bills 270,945 145,564
- Loans, cash credit, running finances, etc.
10.3, 10.4 & 10.5 115,667 101,498
- Musharika financings 571,769 95,700
- House financings 677,349 8,380
Total financing 10.6 12,418,567 7,459,270
Less: Provision against non-performing
financings 10.7 78,822 62,192
12,339,745 7,397,078
===============================================================================10.1. PARTICULARS OF FINANCINGS10.1.1. ===========================================================================
2004 2003
Rupees in '000
===========================================================================
- In local currency 12,132,123 6,841,848
- In foreign currencies 207,622 555,230
12,339,745 7,397,078
===========================================================================10.1.2.===========================================================================
2004 2003
Rupees in '000
===========================================================================
Short-term (for up to one year) 8,583,182 6,290,711
Long-term (for over one year) 3,756,563 1,106,367
12,339,745 7,397,078
===========================================================================10.2. NET INVESTMENT IN IJARAH=======================================================================================================================================
2004 2003
Not later Later than Over Total Not later Later than Over Total
than one one and less five than one one and less five
year than five years year than five years
years years
Rupees in '000
=======================================================================================================================================
Ijarah rentals receivable 950,976 2,332,991 9,697 3,293,664 600,299 946,778 - 1,547,077
Residual value 14,650 452,418 395 467,463 25,546 140,105 - 165,651
Minimum ijarah payments 965,626 2,785,409 10,092 3,761,127 625,845 1,086,883 - 1,712,728
Profits for future periods 223,969 313,486 2,192 539,647 132,249 140,126 - 272,375
Present value of minimum ijarah
payments 741,657 2,471,923 7,900 3,221,480 493,596 946,757 - 1,440,353
=======================================================================================================================================10.3. During the year a revised scheme of arrangement was sanctioned by the High Court of Sindh in respect of Pakland Cement Limited (PCL). Under the revised scheme of arrangement:� TFCs having a face value of Rs 40.589 million were issued; and � the Bank has waived mark up aggregating Rs 36.347 million (note 10.8.3) which represents Rs 23.286 million in respect of accrued mark up from January 1, 2001 to May 31, 2004 and Rs 13.061 million in respect of TFC Series B. These TFCs have been issued by PCL in two series, series 'A' represents the principal amount and will carry a yield of 6 months ask KIBOR + 2.5 percent whereas series 'B' has been issued for accrued mark up and carries no yield. The TFCs will be redeemed between the period January 15, 2005 to July 15, 2013. The transfer of these TFCs can only be effected among the creditors of PCL and transfer to third party (other than a creditor) will require prior written consent of the issuer. The outstanding amount of the original loan is fully provided. 10.4. This includes Rs 56.691 million representing mark-up free loans to staff advanced under the Bank's human resource policies. Included therein are loans to executives and directors as shown in note 10.4.1 below. 10.4.1. LOANS TO EXECUTIVES AND DIRECTORS ========================================================================
Executives Director
2004 2003 2004 2003
Rupees in '000
========================================================================
Opening balance 23,329 15,929 1,093 1,226
Loans disbursed during the year 14,495 8,835 - -
Loans repaid during the year (3,761) (1,435) (133) (133)
Closing balance 34,063 23,329 960 1,093
========================================================================10.5. PARTICULARS OF LOANS AND FINACINGS TO DIRECTORS, ASSOCIATED COMPANIES ETC===============================================================================
Balance as at Maximum total
December 31, amount of
2004 financings
including
temporary
financings
granted during
the year*
Rupees in '000
===============================================================================
Debts due by directors, executives or officers of the
Bank or any of them either severally or jointly
with any other persons 56,691 56,691
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 - note 10.5.1 146,917 146,917
Debts due by subsidiary companies, controlled
firms, managed modarabas and other related
parties - note 10.5.2 474 474
204,082 204,082
===============================================================================* The maximum amount has been calculated by reference to month end balances.10.5.1. This represents a musharika facility outstanding from Blue Water (Private) Limited (an associated company) amounting to Rs 94.500 million and ijaraha facilities outstanding from The General Tyre and Rubber Company Limited (an associated company) amounting to Rs 52.417 million. The musharika facility is secured against equitable mortgage over property whereas the ijaraha facility is secured against the respective assets. 10.5.2. This represents an ijaraha facility outstanding from Al-Meezan Investment Management Limited (a subsidiary company). The ijaraha facility is secured against the respective assets. 10.6. Financings include Rs 59.971 million (2003: Rs 62.192 million) which have been placed under non-performing status as detailed below: =====================================================================================================
Category of classification Domestic Overseas Total Provision Provision
required held
Rupees in '000
=====================================================================================================
Other assets especially mentioned - - - - -
Substandard - - - - -
Doubtful - - - - -
Loss 59,971 - 59,971 59,971 59,971
59,971 - 59,971 59,971 59,971
=====================================================================================================10.7. PARTICULARS OF PROVISION AGAINST NON-PERFORMING FINANCINGS====================================================================================
2004 2003
Specific General Total Specific General Total
Rupees in '000 -
====================================================================================
Opening balance 62,192 - 62,192 175,257 - 175,257
Charge for the year 2,620 18,851 21,471 - - -
Reversals (4,480) - (4,480) (17,769) - (17,769)
(1,860) 18,851 16,991 (17,769) - (17,769)
Amouns written off
- note 10.8.1 (361) - (361) (95,296) - (95,296)
Closing balance 59,971 18,851 78,822 62,192 - 62,192
====================================================================================10.7.1. The Bank has maintained a general reserve (provision) in accordance with the applicable requirements of the prudential regulations for consumer financing issued by the State Bank of Pakistan.10.8. PARTICULARS OF WRITE OFFs 10.8.1. AGAINST PROVISION - REFER NOTE 10.7. =============================================================
2004 2003
Rupees in '000
=============================================================
361 95,296
Directly charged to profit and loss account - -
361 95,296
=============================================================10.8.2.=============================================================
2004 2003
Rupees in '000
=============================================================
Write offs of Rs 500,000 and above - 95,296
Write offs below Rs 500,000 361 -
361 95,296
=============================================================10.8.3. Details of loan write off of Rs 500,000 and above.In terms of sub-section (3) of section 33A of the Banking Companies Ordinance, 1962, the statement in respect of written off loans or any other financial relief of five hundred thousand rupees or above allowed to any person during the year ended December 31, 2004 is as follows: ======================================================================================================================================================
Name and Name of directors* Father's name* Outstanding liabilities at the date of write off Principal Mark-up Others Total
address of (with NIC number) Principal Mark-up Other Total written off waived financial relief
the borrowers provided
Rupees in '000
======================================================================================================================================================
1. Pakland Syed Moonis Syed Riaz uddin 30,959 16,134 - 47,093** - - 36,347 36,347
Cement Abdullah Alvi Alvi Esq.
Limited Esq.
Dewan Centre, 42201-6886191-3
3-A, Lalazar
Beach Hotel Mr. Muhammad Mr. Ghulam Nabi
Road, Karachi Khubaib
42301-5462662-3
Mr. Aziz ul- Mr. Noor-ul-
Haque Haque
42301-8514003-5
Mr. Farrukh Mr. Muhammad
Viqaruddin Viqaruddin
Junaidy Junaidy
42301-7518478-7
Mr. Zaheer Mr. Ahmed Jaleel
Mustafa Jaleel Siddiqui
420007-245886-7
Mr. Khursheed Mr. Muhammad
Anwer Jamal Yaqoob
42201-0763190-5
Mr. Muhammad Mr. Muhammad
Shabbir Alem Mobin
516-73-164873
(Nominee director
on behalf of NIT)
Mr. Wajahat A. Mr. Tasleem
Baqai Uddin Baqai
***
(Nominee director
on behalf of
creditors)
Mr. Wasif ***
Mustafa Khan
***
(Nominee director
on behalf of
creditors)
====================================================================================================================================================== * Information as available in the records of the Bank** In addition to the above amounts aggregating Rs 50.797 million were recoverable as markup, however, as a matter of prudence the Bank had not recognised this balance in its books. Out of this balance the Bank has waived mark up aggregating Rs 36.347 million. *** Information not available in the records of the Bank. 11. OTHER ASSETS =====================================================================
2004 2003
NOTE Rupees in '000
=====================================================================
Profit / return accrued in local currency 106,650 66,690
Profit / return accrued in foreign currency 1,945 2,451
Advances, deposits, advance rent and other
prepayments 150,044 30,837
Advance taxation (payments less provisions) 187,719 186,077
Receivables on account of sale of securities 318,524 31,339
Dividends receivable 3,716 2,242
Stamps 1,494 879
Advance against future murabaha 325,046 298,921
Advances against future ijarah 247,632 67,020
Security deposits 5,928 2,594
Prepaid exchange risk fee 42 129
Other 11.1 444 47
1,349,184 689,226
=====================================================================11.1. This represents amount recoverable from the SBP upon encashment of various instruments on behalf of the SBP by the Bank.12. OPERATING FIXED ASSETS ============================================================
2004 2003
Notes Rupees in '000
============================================================
Tangible assets
- Capital work-in-progress 12.1 12,830 9,268
- Property, equipment and others 12 182,767 64,636
195,597 73,904
Intangible assets 12.3 9,140 4,633
204,737 78,537
============================================================12.1. CAPITAL WORK-IN-PROGRESS============================================================
2004 2003
Rupees in '000
============================================================
- Advances to suppliers and contractors for
building renovation 4,792 6,708
- Advances for purchase of vehicles 8,038 2,560
12,830 9,268
============================================================12.2. PROPERTY, EQUIPMENT AND OTHERS====================================================================================================================================
COST DEPRECIATION
As at Additions/ As at As at Charge/ As at Net book Rate of
January (disposals) December January (on disposals) December value depre
1, 2004 31, 2004 1, 2004 31, 2004 as at -ciation
December %
31, 2004
Rupees in '000
====================================================================================================================================
Land and buildings
- note 12.2.1 - 55,329 55,329 - 2,766 2,766 52,563 5%
Leasehold
improvements 26,534 34,487 61,021 3,298 6,102 9,400 51,621 10%
Furniture and fixtures 6,155 6,298 12,453 1,121 1,245 2,366 10,087 10%
Electrical, office and
computer equipment 32,971 43,695 75,999 16,894 23,213 39,852 36,147 33%
(667) (255)
Vehicles 32,313 23,642 53,214 12,024 10,381 20,865 32,349 20%
(2,741) (1,540)
2004 97,973 163,451 258,016 33,337 43,707 75,249 182,767
(3,408) (1,795)
2003 43,143 58,476 97,973 16,732 19,066 33,337 64,636
(3,646) (2,461)
====================================================================================================================================12.2.1. The break-up of cost of land and buildings between the two separate categories has not been disclosed as the subject purchase was made for an overall price.12.2. Included in cost of property, equipment and others are fully depreciated items still in use aggregating Rs 6.986 million (2003: Rs 6.721 million). 12.2.3. DETAILS OF DISPOSAL OF FIXED ASSETS TO EXECUTIVES AND OTHER PERSONS ARE AS FOLLOWS: =================================================================================================================================
Description Cost Accum Net book Sale Made of Particulars of Addresses
-ulated value proceeds disposal purchaser
depreci
-ation
Rupees in '000
=================================================================================================================================
Electrical,
office and
computer
equipment
Generator 550 181 369 250 Negotiation Base Ten Suit # 1007, Pak
International Avenue, 10th Floor,
Block 6, 24-A
P.E.C.H.S., Main
Shahrah-e-Faisal,
Karachi 75400
Toshiba
photocopier - - - 29 Negotiation General Traders 1st Floor, Al-Falah
(Private) Limited Courts, I.I. Chundrigar
Road, Karachi
Mobile 12 4 8 5 Insurance Adamjee 6th Floor, Adamjee
claim Insurance House, I.I. Chundrigar
Company Rod, Karachi 74000
Limited
Laptop 104 68 36 36 Bank Emad-ul-Hasan B-53, Block 4-A
policy (Ex-employee) Gulshan-e-Iqbal,
Karachi.
Vehicles
Honda Civic 1,241 497 744 915 Bank Chaudhry 161-M Lahore Cantt.
policy Naseem Yasin Cooperative Housing
(Ex-employee) Society, Lahore
Honda City 735 662 73 159 Bank Sohail Khan A-228, Block D, North
policy (Employee) Nazimabad, Karachi
Honda City 766 383 383 383 Bank Emad-ul-Hassan B-53, Block 4-A,
policy (Ex-Employee) Gulshan-e-Iqbal,
Karachi
Honda Civic - - - 465 Negotiation Nadeem Ahmed House No. 66 Muslim
(Individual) Town, Faisalabad
Honda Civic - - - 75 Bank Saleem Khan Appartment No.701,
policy (Employee) Margalla Towers, F-10
Islamabad
3,408 1,795 1,613 2,317
=================================================================================================================================12.3. INTANGIBLE ASSETS====================================================================================================================
COST AMORTISATION
As at Additions As at As at Charge As at Net book Rate of
January December January December value amortisa-
1, 2004 31, 2004 1, 2004 31, 2004 as at tion
December %
31, 2004
Rupees in '000
====================================================================================================================
Computer
software 5,328 5,600 10,928 695 1,093 1,788 9,140 10%
2003 1,621 3,707 5,328 162 533 695 4,633
====================================================================================================================13. BILLS PAYABLE=========================================================================
2004 2003
Rupees in '000
=========================================================================
In Pakistan 196,145 163,008
Outside Pakistan - 6,054
196,145 169,062
=========================================================================14. DUE TO FINANCIAL INSTITUTIONS=========================================================================
2004 2003
Rupees in '000
=========================================================================
In Pakistan 2,862,139 988,964
Outside Pakistan - -
2,862,139 988,964
=========================================================================14.1. PARTICULARS OF DUE TO FINANCIAL INSTITUTIONS=========================================================================
2004 2003
Rupees in '000
=========================================================================
In local currency 2,835,274 988,964
In foreign currencies 26,865 -
2,862,139 988,964
=========================================================================14.2. DETAILS OF DUE TO FINANCIAL INSTITUTIONS=========================================================================
2004 2003
Note Rupees in '000
=========================================================================
Secured
Under Islamic export refinance scheme 14.2.1 2,665,274 988,964
Unsecured
Call borrowing 170,000 -
Others 26,865 -
2,862,139 988,964
=========================================================================14.2.1. These borrowings are on a profit and loss sharing basis maturing between January 17 to June 30, 2005 and are secured against demand promissory notes executed in favour of the SBP.A limit of Rs 3,000 million has been allocated to the Bank by the SBP under Islamic export refinance scheme for the financial year ending June 30, 2005. 15. DEPOSITS AND OTHER ACCOUNTS ===============================================================================
2004 2003
Rupees in '000
===============================================================================
Customers
-Fixed deposits schemes 4,628,446 3,102,645
-Savings deposits 5,113,127 3,566,193
-Current accounts - remunerative - -
-Current accounts - non-remunerative 3,134,172 601,349
-Margin 90,675 11,496
12,966,420 7,281,683
Financial institutions
-Remuneration deposits 784,038 474,712
-Non-remuneration deposits 19,349 467
803,387 475,179
13,769,807 7,756,862
===============================================================================15.1. PARTICULARS OF DEPOSITS===============================================================================
2004 2003
Rupees in '000
===============================================================================
In
-local currency 12,914,624 6,982,937
-foreign currencies 855,183 773,925
13,769,807 7,756,862
===============================================================================16. OTHER LIABILITIES===============================================================================
2004 2003
Notes Rupees in '000
===============================================================================
Return on deposits and other dues
-payable in local currency 16.1 76,211 40,764
-payable in foreign currency 818 526
Unearned commission 7,803 7,159
Accrued expenses 23,260 15,494
Advance payments 10,879 2,493
Unclaimed dividends 862 107
Unrealised loss (net) on forward foreign exchange contr 1,184 386
Payable to defined benefit plan 32.3 6,530 2,889
Provision against
off-balance sheet obligations 16.2 1,600 1,600
Security deposits against ijarah 480,863 188,401
Payable on account of purchase of securities 64,449 23,917
Other staff benefits 64,373 64,605
Proposed dividend - 53,202
Others 16.3 & 16.4 31,799 28,247
770,631 429,790
===============================================================================16.1. It includes Rs. 10.357 million (2003: Rs. 3.143 million) in respect of return accrued on borrowings from the SBP under the Islamic export refinance scheme.16.2. PROVISION AGAINST OFF-BALANCE SHEET OBLIGATIONS ===============================================================================
2004 2003
Note Rupees in '000
===============================================================================
Opening balance 16.2.1 1,600 1,600
Charge for the year - -
Reversals - -
Amount written off - -
Closing balance 1,600 1,600
===============================================================================16.2.1. This represents provision made against a bail bond issued on behalf of former employees of Societe Generale, The French and International Bank in a suit pending before a court.16.3. It includes charity payable aggregating Rs. 2.889 million (2003: Rs. 2.773 million). Charities amounting to Rs. 0.200 million and Rs. 0.350 million during the year ended December 31, 2004 were paid to Memon Hospital and Sindh Institute of Urology and Transplantation respectively. None of the other individuals received charity in excess of Rs. 100,000 each. Charity was not paid to any individual / organisation in which a director or his spouse had any interest at any time during the year. 16.4. It includes an aggregate amount of Rs 7.200 million which the Bank had earned from murabaha financings and which has not been recognised as income on the directive of the Shariah Supervisory Board that pending a detailed review of the underlying transactions the related income may not be in accordance with the principles of Islamic Shariah. 17. DEFERRED TAXATION ===================================================================
2004 2003
Rupees in '000
===================================================================
(Debit)/credit balances arising on account of:
Excess of tax written down values over
accounting net book values of owned asset 1,397 (1,314)
Other staff benefits (24,461) (26,488)
Excess of ijarah financings over tax written
down values of ijarah assets 113,504 67,063
Carried forward unassessed tax loses (86,284) (28,149)
Excess of tax written down values over
accounting net book values of investments (2,404) (1,876)
Provision against non-performing financing (858) -
Others (608) -
286 9,236
===================================================================17.1. The Bank has an aggregate amount of Rs. 227.062 million available as carried forward unassessed tax losses as at December 31, 2004.The management is confident that sufficient taxable profits will be available in the future against which these tax losses shall be offset. Accordingly, the full amount of carried forward tax losses has been considered in calculating the deferred tax balance. 18. SHARE CAPITAL 18.1. AUTHORISED, ISSUED, SUBSCRIBED AND PAID-UP CAPITAL A SUMMARY OF THE MOVEMENT ON ORDINARY SHARE CAPITAL IS GIVEN BELOW: ===================================================================
Number Amount
Rs '000'
===================================================================
Authorised capital
As at January 1, 2004 150,000,000 1,500,000
Increase during the year 50,000,000 500,000
As at December 31, 2004 200,000,000 2,000,000
Issued capital
As at January 1, 2003 100,145,425 1,001,454
Ordinary shares of Rs. 10 each issued as
bonus shares 6,259,089 62,591
As at December 31, 2003 106,404,514 1,064,045
Ordinary shares of Rs. 10 each issued as
bonus shares 28,197,195 281,972
Right issue at Rs. 10 each 35,113,489 351,135
As at December 31, 2004 169,715,198 1,697,152
Subscribed and paid-up capital
As at January 1, 2003 100,145,425 1,004,454
Issue of bonus shares 6,259,089 62,591
As at December 31, 2003 106,404,514 1,064,045
Issue of bonus shares 28,197,195 281,972
As at December 31, 2004 134,601,709 1,346,017
===================================================================18.1.1. In accordance with the directive of the State Bank of Pakistan, all banks were required to increase their paid up capital to Rs. 1.5 billion by December 31, 2004. To comply with that requirement, the Bank has issued 35,113,489 right shares having a paid up value of Rs. 351.135 million as at December 31, 2004.The Bank had received an aggregate amount of Rs. 192.312 million against such right issue upto December 31, 2004. A further amount of Rs. 120.585 million has been received upto February 9, 2005, the last date of renunciation of the rights. The remaining amount was received by March 3, 2005. 18.2. The Bank intends to issue 9.9 million ordinary shares of Rs. 10 each having a face value of Rs. 99 million under an employee stock opinion plan. 18.3. SHARES OF THE BANK HELD BY A SUBSIDIARY ==================================================================
As at As at
December December
31, 2004 31, 2003
==================================================================
Number of shares
Subsidiary
- Al-Meezan Investment Management Limited - 20,904
==================================================================19. CAPITAL RESERVES==================================================================
2004 2003
NOTE Rupees in '000
==================================================================
Share premium account - 33,333
Statutory reserve 19.1 256,578 211,706
Reserve for issue of bonus shares - 106,405
256,578 351,444
==================================================================19.1. Under section 21 of the Banking Companies Ordinance, 1962 an amount not less than 20% of the profit is to be transferred to create a reserve fund till such time the reserve fund and the share premium account equal the amount of the paid up capital.20. REVENUE RESERVES ==================================================================
2004 2003
Rupees in '000
==================================================================
General reserve 66,766 209,000
Unappropriated profit 191,559 12,073
258,325 221,073
==================================================================21. SURPLUS ON REVALUATION OF INVESTMENTS==================================================================
2004 2003
Rupees in '000
==================================================================
Quoted shares 40,866 111,270
Other securities (Quoted MTFCs) 4,284 643
45,150 111,913
==================================================================22. CONTINGENCIES AND COMMITMENTS22.1. DIRECT CREDIT SUBSTITUTES ==================================================================
2004 2003
Rupees in '000
==================================================================
Government 66,587 62,587
==================================================================22.2. TRANSACTIONS RELATED CONTINGENT LIABILITIES==================================================================
2004 2003
Rupees in '000
==================================================================
Guarantees favouring
- Government 2,188,156 1,976,350
- Banks 32,717 9,634
- Others 714,812 372,420
2,935,685 2,358,404
==================================================================22.3. TRADE RELATED CONTINGENT LIABILITIES==================================================================
2004 2003
Rupees in '000
==================================================================
Import letters of credit 2,880,866 1,487,620
Acceptances 1,236,296 666,632
4,177,162 2,154,252
==================================================================22.4. While financing the assessment of the Bank for the income year ended June 30, 2001 (assessment year 2001-2002) the assessing officer has subjected to tax the gain on foreign currency deposits claimed as exempt in the return of income.The matter has been set aside by the Commissioner of Income Tax, Appeals for reexamination by the assessing officer, recognising the fact that the State Bank of Pakistan through its letter No. 6226/Sec-296-2001 dated October 3, 2001 has confirmed that the assessee's deposits in its opinion were covered under the Protection of Economics Reforms Act, 1992. The amount of tax levied by the assessing officer on such gain aggregating Rs. 141.689 million, whereas the net tax liability for the aforesaid assessment year and other relevant assessment years after considering relief for the related expenditure amounts to approximately Rs. 41 million. The management is confident that the ultimate outcome of the fresh assessment would be in favour of the Bank and accordingly no provision has been recognised in the financial statements in this regard. 22.5. COMMITMENTS IN RESPECT OF ===========================================================================
2004 2003
Rupees in '000
===========================================================================
Financings 10,754,024 5,954,993
===========================================================================22.6. COMMITMENTS IN RESPECT OF FORWARD EXCHANGE CONTRACTS===========================================================================
2004 2003
Rupees in '000
===========================================================================
Purchases 573,145 279,873
Sales 1,808,208 483,936
===========================================================================22.7. OTHER COMMITMENTS===========================================================================
2004 2003
Rupees in '000
===========================================================================
Bills for collection (inland) 32,249 8,052
Bills for collection (foreign) 934,538 489,177
966,787 497,229
===========================================================================23. PROFIT/RETURN ON FINANCINGS, INVESTMENTS AND PLACEMENTS EARNED===========================================================================
2004 2003
Notes Rupees in '000
===========================================================================
On financings to:
- Customers 23.1 513,397 347,713
- - -
On investments in
- 'Held for maturity' securities 23.2 1,639 212
- 'Available for sale' securities 5,327 5,129
On deposits with financial institutions 14,037 22,513
534,400 375,567
===========================================================================23.1. It includes return aggregating Rs. 18.757 million (2003: Rs. 0.600 million) on financing under musharika arrangements.23.2. It represents return on investments made in Qatar and Dubai Global Sukuk Bonds. 24. RETURN ON DEPOSITS AND OTHER DUES EXPENSED ===========================================================================
2004 2003
Rupees in '000
===========================================================================
Deposits 195,549 176,244
Other short term borrowings 54,844 6,110
250,393 182,354
===========================================================================25. OTHER INCOME===========================================================================
2004 2003
NOTE Rupees in '000
===========================================================================
Gain on sale of shares in s subsidiary company 450 -
Gain on sale of property, equipments and others 704 1,391
Gain on termination in ijarah financings 3,897 792
Others 25.1 577 6,079
5,628 8,262
===========================================================================25.1. It includes reversal of provision amounting to Rs. Nil (2003: Rs. 5 million) for the proposed small business support fund.26. ADMINISTRATIVE EXPENSES ===========================================================================
2004 2003
Notes Rupees in '000
===========================================================================
Salaries, allowances, etc. 160,338 108,547
Charge for defined benefit plan 32.4 3,641 2,889
Contribution to defined contribution plan 4,606 3,985
Directors' fees 33 8,824 9,596
Rent, taxes, insurance, electricity, etc. 62,440 34,491
Legal and professional charges 5,345 5,367
Communication 19,753 13,327
Repairs and maintenance 3,435 3,010
Stationery and printing 13,646 6,758
Advertisement and publicity 21,816 9,164
Auditors' remuneration 26.1 4,925 2,527
Depreciation 12.2 43,707 19,066
Amortisation 12.3 1,093 533
Travelling 5,785 3,911
Entertainment 2,689 1,212
Local transportation and car running 8,162 4,616
Clearing charges and subscription fees 7,128 1,134
Security charges 3,646 2,356
Office supplies 1,754 871
Service charges 33.2 13,734 13,812
Brokerage and commission 4,655 2,210
Hardware and software maintenance 2,760 1,986
Others 5,414 4,081
409,296 255,449
===========================================================================26.1. AUDITORS' REMUNERATION===========================================================================
2004 2003
Rupees in '000
===========================================================================
Audit fee 850 750
Fee for audit of employees' funds 75 75
Special certifications and sundry advisory service 2,566 1,518
Tax services 1,304 89
Out of pocket expenses 130 95
4,925 2,527
===========================================================================27. OTHER CHARGES===========================================================================
2004 2003
Rupees in '000
===========================================================================
Penalties imposed by the SBP 185 20
185 20
===========================================================================28. TAXATION===========================================================================
2004 2003
Rupees in '000
===========================================================================
- Current 5,470 5,731
- Deferred (8,950) 21,284
(3,480) 27,015
===========================================================================28.1. As the provision for current taxation for the year ended December 31, 2004 has been made on the basis of presumptive tax therefore a relationship between the tax expense and the accounting profit has not been disclosed.29. BASIC EARNINGS PER SHARE ===========================================================================
2004 2003
NOTE Rupees in '000
===========================================================================
Profit for the year (Rupees in '000) 224,358 213,813
Weighted average number of ordinary shares 134,301,709 134,601,709
Basic earnings per share 29.1 (Rupees) 1.67 1.59
===========================================================================29.1. The number of ordinary shares as at December 31, 2003 has been adjusted for issue of bonus shares.29.2. There were no convertible dilutive potential ordinary shares outstanding on December 31, 2004 and 2003. 30. CASH AND CASH EQUIVALENTS ===========================================================================
2004 2003
NOTE Rupees in '000
===========================================================================
Cash and balances with treasury banks 7 2,623,588 1,042,285
Balances with other banks 8 1,751,083 683,596
4,374,671 1,725,881
===========================================================================31. STAFF STRENGTH===========================================================================
2004 2003
Rupees in '000
===========================================================================
Total number of employees, including 73 (2003:
63) contracted employees at the end of the year 511 238
===========================================================================32. DEFINED BENEFIT PLAN32.1. PRINCIPAL ACTUARIAL ASSUMPTIONS ===========================================================================
2004 2003
===========================================================================
Discount rate 9% p.a 7% p.a.
Expected rate of increase in salaries 9% p.a 7% p.a.
Expected rate of return on investments 9% p.a 7% p.a.
Normal retirement age 60 years 60 years
===========================================================================32.2. RECONCILIATION OF AMOUNT PAYABLE TO DEFINED BENEFIT PLAN===========================================================================
2004 2003
NOTE Rupees in '000
===========================================================================
Present value of defined benefit obligations 10,972 7,332
Fair value of plan assets 32.6 (1,956) (1,931)
Net actuarial losses not recognised (2,486) (2,512)
6,530 2,889
===========================================================================32.3. MOVEMENT IN PAYABLE TO DEFINED BENEFIT PLAN===========================================================================
2004 2003
NOTE Rupees in '000
===========================================================================
Opening balance 2,889 1,113
Charge for the year 32.4 3,641 2,889
Contribution made during the year - (1,113)
Closing balance 6,530 2,889
===========================================================================32.4. CHARGE FOR DEFINED BENEFIT PLAN===========================================================================
2004 2003
Rupees in '000
===========================================================================
Current service cost 3,126 2,450
Interest cost 513 354
Expected return on plan assets (135) (63)
Actuarial losses 137 148
3,641 2,889
===========================================================================32.5. ACTUAL RETURN ON PLAN ASSETS===========================================================================
2004 2003
Rupees in '000
===========================================================================
473 315
===========================================================================32.6. It includes a balance of Rs. 1.223 million (2003: Rs. 1.636 million) kept in a savings account with the Bank.33. REMUNERATION OF THE PRESIDENT AND CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES The amounts charged in these financial statements are as follows: ========================================================================================
President and
Chief Executive Directors Executives
2004 2003 2004 2003 2004 2003
Rupees in '000
========================================================================================
Fees 899 899 7,925* 8,697 - -
Managerial remuneration 8,945 7,931 12,116 10,568 27,673 25,494
Charge for defined
benefit plan - - 513 440 1,327 1,308
Contribution to defined
contribution plan - - 615 528 1,517 1,523
House rent - - 135 - 2,601 85
Utilities - - 615 528 1,816 1,675
Medical 69 113 723 332 2,059 1,575
Conveyance 506 233 259 - - -
Leave fare assistance - - 138 -
Others 218 56 128 515 788 1,953
10,637 9,232 23,167 21,608 37,781 33,613
Number of persons 1 1 10 12 20 18
========================================================================================* This includes amounts charged in these financial statements as fees to nine (2003: eleven) non-executive directors.33.1. Certain executives are provided with free use of the Bank cars and certain items of household furniture and fixtures in accordance with their entitlements. 33.2. In addition to the above, service charges (note 26) include Rs. 12.997 million (2003: Rs. 11.489 million) in respect of reimbursement, to a related party, of salary and other benefits paid by that related party to the chief executive as he is on secondment from that related party. 34. MATURITIES OF ASSETS AND LIABILITIES =========================================================================================================
2004
Category of classification Total Upto three Over three Over one year Over five
months months to five years years
to one year
Rupees in '000
=========================================================================================================
Assets
Cash and balances with treasury banks 2,623,588 2,623,588 - - -
Balances with other banks 1,751,083 1,591,083 160,000 - -
Investments 1,429,053 220,898 231,510 34,884 941,761
Financings 12,339,745 6,056,861 2,526,321 2,711,480 1,045,083
Other assets 1,349,184 1,343,256 - - 5,928
Operating fixed assets 204,737 - - - 204,737
19,697,390 11,835,686 2,917,831 2,746,364 2,197,509
Liabilities
Bills payable 196,145 196,145 - - -
Due to financial institutions 2,862,139 2,045,339 816,800 - -
Deposits and other accounts - note 34.1 13,769,807 10,227,140 1,825,937 1,716,730 -
Other liabilities 770,631 223,754 139,486 406,212 1,179
Deferred taxation 286 - - 286 -
17,599,008 12,692,378 2,782,223 2,123,228 1,179
Net assets 2,098,382 (856,692) 135,608 623,136 2,196,330
Share capital 1,346,017
Capital reserves 256,578
Revenue reserves 258,325
Advance against issue of right shares 192,312
Surplus on revaluation of investments 45,150
2,098,382
=========================================================================================================34.1. Current and savings deposits have been classified under maturity upto three months as these do not have any contracted maturity. Further, the Bank estimates that these deposits are a core part of its liquid resources and will not fall below the current year's level.35. YIELD/PROFIT RATE RISK Yield/profit rate sensitivity position for on-balance sheet instruments is based on the earlier of contractual repricing or maturity date and for off-balance sheet instruments is based on settlement date. =====================================================================================================================================
2004
Effective Total Exposed to yield / profit rate risk Not exposed
yield/ Upto Over three Over one Over five to yield/
profit three months to year to years profit
rate months one year five years rate risk
(Rupees in '000)
=====================================================================================================================================
On-balance sheet financial
instruments
Assets
Cash and balances with treasury banks - 2,623,588 - - - - 2,623,588
Balances with other banks 1.77 1,751,083 751,472 160,000 - - 839,611
Investments 4.10 1,429,053 - - 34,884 178,290 1,215,879
Financings 6.04 12,339,745 6,055,322 2,522,198 2,693,135 1,012,399 56,691
Other assets - 1,009,885 - - - - 1,009,885
19,153,354 6,806,794 2,682,198 2,728,019 1,190,689 5,745,654
Liabilities
Bills payable - 196,145 - - - - 196,145
Due to financial institutions 2.78 2,862,139 2,045,339 816,800 - - -
Deposits and other accounts 2.80 13,769,807 6,982,944 1,825,937 1,716,730 - 3,244,196
Other liabilities - 264,556 - - - - 264,556
17,092,647 9,028,283 2,642,737 1,716,730 - 3,704,897
On-balance sheet gap 2,060,707 (2,221,489) 39,461 1,011,289 1,190,689 2,040,757
Non-financial assets 544,036
Non-financial liability (506,361)
Total net assets 2,098,382
Off-balance sheet financial
Instruments
Forward lendings - - - - - -
Forward borrowings - - - - - -
Off-balance sheet gap - - - - - -
Total yield/profit risk sensitivity gap (2,221,489) 39,461 1,011,289 1,190,689
Cumulative yield/profit risk sensitivity gap (2,221,489) (2,182,028)(1,170,739) 19,950
=====================================================================================================================================Yield risk is the risk of decline in earnings due to adverse movement of the yield curve.Profit rate risk is the risk that the value of the financial instruments will fluctuate due to changes in the market profit rates. 36. CURRENCY RISK =================================================================================
2004
Assets Liabilities Off-balance Net foreign
sheet items currency exposure
Rupees in '000
=================================================================================
Pakistan rupees 17,045,248 16,209,781 1,235,063 2,070,530
United States dollars 2,001,045 799,105 (1,242,450) (40,510)
Great Britain pounds 26,716 40,231 (685) (14,200)
Japanese yen 1,797 - (1,571) 226
Euro 75,338 43,530 9,643 41,451
Singapore dollars 632 - - 632
Australian dollars 1,152 - - 1,152
Canadian dollars 872 - - 872
Swiss francs 554 - - 554
19,153,354 17,092,647 - 2,060,707
=================================================================================The currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. The Bank does not take any currency exposure except to the extent of statutory net open position prescribe by the SBP.Foreign exchange open and mismatch positions are controlled through internal limits and are marked to market on a daily basis to contain forward exposures. 37. FAIR VALUE OF FINANCIAL INSTRUMENTS The fair value of investments in listed securities, except investments categorised as 'held to maturity' securities and investments in subsidiaries and associates is based on quoted market prices. The value of unquoted equity investments is reduced, if required, on the basis of break-up value of those investments based on the latest available financial statements as disclosed in notes 9.6 and 9.8. The fair value of advances, other assets, other liabilities and deposits and other accounts cannot be calculated with sufficient reliability due to 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 financings has been calculated in accordance with the Bank's accounting policy as stated in note 5.3. In the opinion of the management, the fair value of the remaining financial assets and liabilities are not significantly different from their carrying values as these assets and liabilities are either short term in nature or in the case of advances and deposits are frequently repriced. 38. CONCENTRATON OF CREDIT AND DEPOSITS Credit risk represents the accounting loss that would be recognised at the reporting date if counter parties failed completely to perform as contracted. However, the Bank does not believe that it is exposed to major concentration of credit risk. The Bank manages its exposure to credit risk by portfolio diversification and adequate collateral, wherever applicable. The Bank has well-defined credit structure duly approved by the Board of Directors, under which delegated authorities at various levels are operating which critically scrutinise and sanction financings. The emphasis is to provide short to medium term trade related financing to reputable names, which are self-liquidating and Shariah compatible. The risk appraisal system of the Bank has enable it to build a sound portfolio. The Bank has developed a system to monitor problem accounts so that instant instructions based on early warming signals are passed on to units to deal with potential problem accounts. 38.1. SEGMENT BY CLASS OF BUSINESS =============================================================================================================
2004
Contingencies and
Financings Deposits Commitments
=============================================================================================================
Rupees Percent Rupees Percent Rupees Percent
in '000 in 000' in 000'
=============================================================================================================
Chemical and pharmaceuticals 430,552 3.49% 202,821 1.47% 1,105,579 5.20%
Agribusiness - - 19,730 0.14% 193,278 0.91%
Textile 4,787,252 38.80% 391,921 2.85% 6,452,318 30.35%
Cement - - 201,063 1.46% - -
Sugar 228,290 1.85% 50,676 0.37% 693,090 3.26%
Shoes and lather garments 622,576 5.05% 39,071 0.28% 670,562 3.15%
Automobile and transportation
equipment 666,544 5.40% 311,360 2.26% 756,381 3.56%
Financial 55,000 0.45% 803,387 5.83% 3,623,130 17.04%
Insurance - - 9,626 0.07% - -
Electronics and
electrical appliances 173,374 1.40% 60,756 0.44% 602,276 2.83%
Production and transmission of
energy 148,200 1.20% 1,235,953 8.98% 100,000 0.47%
Individuals 1,259,375 10.20% 6,630,929 48.16% 30,724 0.14%
Others 3,968,582 32.16% 3,812,514 27.69% 7,035,260 33.09%
12.339,745 100% 13,769,807 100% 21,262,598 100%
=============================================================================================================38.2. SEGMENT BY SECTOR=============================================================================================================
2004
Contingencies and
Financings Deposits Commitments
=============================================================================================================
Rupees Percent Rupees Percent Rupees Percent
in '000 in 000' in 000'
=============================================================================================================
Public/Government - - - - - -
Private 12,339,745 100% 13,769,807 100% 21,262,598 100%
12,339,745 100% 13,769,807 100% 21,262,598 100%
=============================================================================================================39. GEOGRAPHICAL SEGMENT ANALYSIS==========================================================================================
2004
Profit before Total assets Net assets Contingencies and
taxation employed employed commitments
Rupees in '000
==========================================================================================
Pakistan 220,878 19,697,390 2,098,382 21,262,598
Asia Pacific (including South Asia) - - - -
Europe - - - -
United States of America and Canada - - - -
Middle East - - - -
Others - - - -
220,878 19,697,390 2,098,382 21,262,598
==========================================================================================40. RELATED PARTY TRANSACTIONS40.1. Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operational decisions and include a subsidiary company, associated companies with or without common directors, retirement benefit funds, directors, and key management personnel. 40.2. A number of banking transactions are entered into with related parties in the normal course of business. These include loans, deposits and foreign currency transactions. These transactions were carried out on commercial terms and at market rates. The services charges relating to secondment are on actual basis. 40.3. NAMES AND NATURE OF RELATED PARTY RELATIONSHIP SUBSIDIARY COMPANY - Al-Meezan Investment Management Limited Associated companies / related parties - Al-Meezan Mutual Fund Limited - Faysal Management Services (Private) Limited - Faysal Bank Limited - Fayzan Manufacturing Modaraba - Pakistan Kuwait Investment Company (Private) Limited - Plexus (Private) Limited - The General Tyre and Rubber Company of Pakistan Limited - Al-Meezan Investment Bank Limited Staff Provident Fund - Al Meezan Investment Bank Limited Staff Gratuity Fund Limited - Meezan Islamic Fund - Meezan Balanced Fund - Falcon Greenwood (Private) Limited - Blue Water (Private) Limited 40.4. KEY MANAGEMENT PERSONNEL - Mr. Irfan Siddiqui (President and Chief Executive Officer) - Mr. Ariful Islam (Chief Operating Officer) 40.5. The volumes of related party transactions, outstanding balances at the year end, and related expense and income for the year are as follows: ============================================================
2004 2003
Rupees in '000
============================================================
Financing
At January 01, 100,000 25,000
Disbursed during the year 246,579 150,000
Repaid during the year (198,310) (75,000)
At December 31, 148,269 100,000
Deposits
At January 01, 452,650 213,447
Deposited during the year 24,057,966 3,005,483
Repaid during the year (23,251,297) (2,766,280)
At December 31, 1,259,319 452,650
Bank balance 4,715 188,549
Profit receivable
on murabaha financing 503 181
Service charges payable by the Bank 75 208
Acceptances 57,714 25,351
Letters of credit (unfunded) 180,890 31,518
Profit earned on murabaha financing 2,599 854
Profit earned on a bank account 5,560 12,472
Return on deposits expensed 15,841 5,115
Dividend income earned 44,747 50,810
Service charges incurred 13,734 13,977
Fees and commission earned 5,722 -
Commission earned on letters of credit 892 269
Dividend paid 31,295 30,443
============================================================Transactions with retirement benefit funds - See notes 16, 26 and 32Remuneration to directors and key management personnel - See note 33 41. DATE OF AUTHORISATION These financial statements were authorised for issue on March 03, 2005 by the Board of Directors of the Bank. |