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Habib Bank Limited
Annual Report 2000
AUDITORS' REPORT TO THE MEMBERS
A.F. FERGUSON & CO. TASEER HADI KHALID & CO.
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
STATE LIFE BUILDING 1-C SHEIKH SULTAN TRUST
I.I. CHUNDRIGAR ROAD BUILDING NO. 2 BEAUMONT ROAD
KARACHI KARACHI
We have audited the annexed balance sheet of Habib Bank Limited as at December 31, 2000 and the
related profit and loss account, cash flow statement and statement of changes in equity together with the
notes forming part thereof (here-in-after referred to as the 'financial statements') for the year then ended, in
which are incorporated the unaudited certified returns from the branches except for eighty branches which
have been audited by us and fifty four branches audited by auditors abroad and we state that we have
obtained all the information and explanations which, to the best of our knowledge and belief, were neces-
sary for the purposes of our audit.
It is the responsibility of the bank's Beard of Directors to establish and maintain a system of internal con-
trol, and prepare and present the financial statements in conformity with approved accounting standards
and the requirements of the Banking Companies Ordinance, 1962 (LVII of 1962), and the Companies
Ordinance, 1984 (XLVII of 1984). Our responsibility is to express an opinion on these statements based
on our audit.
We conducted our audit in accordance with the International Standards on Auditing as applicable in
Pakistan. These standards require that we plan and perform the audit to obtain reasonable assurance
bout whether the financial statements are free of any material misstatement. An audit includes examining,
on a test basis, evidence supporting amounts and disclosures in the financial statements. An audit also
includes assessing accounting policies and significant estimates made by management, as well as, evalu-
ating the overall presentation of the financial statements. We believe that our audit provides a reasonable
basis for our opinion and after due verification, which in case of loans and advances covered more than
60% of the total domestic loans and advances of the bank, we report that:
(a) in our opinion, proper books of accounts have been kept by the bank as required by the Companies
Ordinance, 1984 (XLVII of 1984) and the returns referred to above received from the branches have
been found adequate for the purposes of our audit;
(b) in our opinion:
(i) the balance sheet and profit and loss account together with the notes thereon have been drawn
up in conformity with the Banking Companies Ordinance, 1962 (LVII of 1962), and the
Companies Ordinance, 1984 (XLVII of 1984), and are in agreement with the books of account
and are further in accordance with accounting policies consistently applied except for the
changes as stated in note 3.5 with which we concur;
(ii) the expenditure incurred during the year was for the purpose of the bank's business; and
(iii) the business conducted, investments made and the expenditure incurred during the year were in
accordance with the objects of the bank and the transactions of the bank which have come to our
notice have been within the powers of the bank;
(c) in our opinion and to the best of our information and according to the explanations given to us, the
balance sheet, profit and loss account, cash flow statement and statement of changes in equity
together with the notes forming part thereof conform with the approved accounting standards as
applicable in Pakistan and give the information required by the Banking Companies Ordinance,
1962 (LVII of 1962), and the Companies Ordinance, 1984 (XLVII of 1984), in the manner so
required and give a true and fair view of the state of the bank's affairs as at 31st December, 2000
and its true balance of the profit, its cash flows and changes in equity for the year then ended; and
(d) in our opinion Zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of
1980), was deducted by the bank and deposited in the Central Zakat Fund established under sec-
tion 7 of that Ordinance.
Sd/- Sd/-
Chartered Accountants Chartered Accountants
Dated: 26 May, 2001 Dated: 26 May, 2001
Karachi Karachi
BALANCE SHEET AS AT DECEMBER 31, 2000
2000 1999 2000 1999
(U.S. $ '000) (Note) (Rupees '000)
ASSETS
221,963 391,977 Cash 4 12,869,044 22,726,139
422,135 353,065 Balances with other banks-net of provision 5 24,474,658 20,470,125
13,223 46,795 Money at call and short notice 766,674 2,713,117
1,250,905 1,114,479 Investments 6 72,525,352 64,615,598
2,998,068 2,756,511 Loans and advances (less loan loss provision) 7 173,822,905 159,817,845
4,611 559 Net investment in finance lease 8 267,359 32,382
102,166 98,150 Operating fixed assets 9 5,923,411 5,690,582
529 7,983 Capital work in progress-civil works 30,671 462,823
521,690 490,509 Other assets 10 30,246,684 28,438,876
------------------ ------------------ ------------------ ------------------
5,535,290 5,260,028 320,926,758 304,967,487
LIABILITIES
4,583,634 4,342,645 Deposits and other accounts
412,630 553,977 Borrowings from other banks, agents etc 12 23,923,589 32,118,639
92,740 96,790 Bills payable 5,376,924 5,611,698
230,094 193,637 Other liabilities 13 13,340,485 11,226,755
------------------ ------------------ ------------------ ------------------
5,319,098 5,187,049 308,392,322 300,736,280
------------------ ------------------ ------------------ ------------------
216,192 72,979 Net assets 12,534,436 4,231,207
========== ========== ========== ==========
FINANCED BY:
210,053 210,053 Share capital 14 12,178,495 12,178,495
137,983 -- Other Tier I capital 15 8,000,000 --
111,565 106,480 Reserve fund & other reserves 16 6,468,385 6,173,534
(308,322) (309,329) Accumulated loss (17,876,069) (17,934,389)
------------------ ------------------ ------------------ ------------------
151,279 7,204 Shareholders equity 8,770,811 417,640
24 -- Surplus on revaluation of securities 17 1,428 --
64,889 65,775 Surplus on revaluation of fixed assets 9.1 3,762,197 3,813,567
------------------ ------------------ ------------------ ------------------
216,192 72,979 12,534,436 4,231,207
========== ========== ========== ==========
MEMORANDUM ITEMS:
954,913 890,573 Bills for collection 19 55,364,241 51,633,891
Acceptances, endorsements and other
667,086 525,821 obligations 38,676,527 30,486,213
Contingent liabilities and commitments 20
The annexed notes form an integral pad of these accounts.
Zakir Mahmood Dr. Shamsh Kassim Lakha
PRESIDENT/CHIEF EXECUTIVE OFFICER DIRECTOR
Ebrahim Sidat Mohsin Aziz
DIRECTOR DIRECTOR
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED DECEMBER 31, 2000
2000 1999 2000 1999
(U.S. $ '000) (Note) (Rupees '000)
418,636 392,424 Mark-up/Interest and discount and/or return earned 24,271,792 22,752,090
19,582 19,027 Income from foreign securities held by overseas branches 1,135,343 1,103,119
------------------ ------------------ ------------------ ------------------
438,218 411,451 25,407,135 23,855,209
299,867 310,391 Less: Cost/Return on deposits, borrowings etc. 17,385,761 17,995,947
------------------ ------------------ ------------------ ------------------
138,351 101,060 8,021,374 5,859,262
32,000 34,409 Fees, commissions and brokerage 1,855,324 1,994,969
6,656 6,951 Profit from investment securities 385,912 403,014
Dividend income and share of profit of
26,030 4,443 subsidiaries/joint ventures 21 1,509,213 257,575
47,217 40,506 Other operating income 22 2,737,486 2,348,547
------------------ ------------------ ------------------ ------------------
111,993 86,309 6,487,935 5,004,105
------------------ ------------------ ------------------ ------------------
250,254 187,369 14,509,309 10,863,367
Operating Expenses
208,208 200,784 Administrative expenses 23 12,071,531 11,641,136
21,080 63,766 Provision against non-performing loans and advances 7.2 1,222,172 3,697,058
2,458 -- Provision for diminution in the value of investments 142,550 --
104 17,398 Other provisions-net 6,013 1,008,705
------------------ ------------------ ------------------ ------------------
231,850 281,948 13,422,266 16,346,899
------------------ ------------------ ------------------ ------------------
18,404 (94,579) 1,067,043 (5,483,532)
1,318 3,013 Other income 24 76,406 174,667
(1,189) -- Other charges 25 (68,924) --
------------------ ------------------ ------------------ ------------------
18,533 (91,566) Profit/(Loss) before taxation 1,074,525 (5,308,865)
Taxation
Current
(8,020) (4,283) - for the year 26 (465,000) (248,310)
-- (26,514) - for prior years -- (1,537,260)
------------------ ------------------ ------------------ ------------------
(8,020) (30,797) (465,000) (1,785,570)
-- (30,697) Deferred taxation -- (1,779,730)
------------------ ------------------ ------------------ ------------------
10,513 (153,060) Profit/(Loss) after taxation 609,525 (8,874,165)
Appropriation
(2,103) -- Transfer to statutory reserve (121,905) --
------------------ ------------------ ------------------ ------------------
8,410 (153,060) 488,620 (8,874,165)
Reserves set aside as per regulatory requirements
(7,403) -- of overseas joint ventures (429,300) --
------------------ ------------------ ------------------ ------------------
1,007 (153,060) 58,320 (8,874,165)
(309,329) (156,269) (17,934,389) (9,060,224)
------------------ ------------------ ------------------ ------------------
(308,322) (309,329) (17,876,069) (17,934,389)
========== ========== ========== ==========
33 0.50 (7.29)
The annexed notes form an integral part of these accounts.
Zakir Mahmood Dr. Shamsh Kassim Lakha
PRESIDENT/CHIEF EXECUTIVE OFFICER DIRECTOR
Ebrahim Sidat Mohsin Aziz
DIRECTOR DIRECTOR
CASH FLOW STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2000
2000 1999 2000 1999
(U.S. $ '000) (Note) (Rupees '000)
CASH FLOW FROM OPERATING ACTIVITIES
18,533 (91,566) Profit/(Loss) before taxation 1,074,525 (5,308,865)
Less:
dividend income and share of profit of subsidiaries/
(26,301) (4,443) joint ventures (1,509,213) (257,575)
(6,656) (6,951) Profit from investment securities (385,912) (403,014)
------------------ ------------------ ------------------ ------------------
(32,687) (11,394) (1,895,125) (660,589)
------------------ ------------------ ------------------ ------------------
(14,514) (102,960) (820,600) (5,969,454)
888 -- Add: Dividend received from joint ventures 51,484 --
------------------ ------------------ ------------------ ------------------
(13,266) (102,960) (769,116) (5,969,454)
Adjustment for non-cash items
8,979 7,666 Depreciation 520,592 444,447
2,459 -- Provision for diminution in the value of investments 142,550 --
Provision against non-performing loans and
18,845 62,223 advances - net of reversals 1,092,604 3,607,579
125 197 Amortisation of premium on investments 7,248 11,407
(1,318) (1,713) Profit on sale of fixed assets (76,406) (99,338)
8,996 31,455 Miscellaneous provisions - net 521,587 1,823,705
------------------ ------------------ ------------------ ------------------
38,086 99,828 2,208,175 5,787,800
------------------ ------------------ ------------------ ------------------
24,820 (3,132) 1,439,059 (181,654)
(Increase)/decrease in operating assets
(121,684) 183,411 Government securities (7,055,011) 10,633,879
(260,402) (356,756) Loans and advances (15,097,664) (20,684,100)
(4,593) (187) Net investment in finance lease (266,318) (10,853)
1,210 (28,410) Other assets - net 70,130 (1,647,172)
------------------ ------------------ ------------------ ------------------
(385,469) (201,942) (22,348,863) (11,708,246)
Increase/(decrease) in operating liabilities
240,989 219,457 Deposits and other accounts 13,972,136 12,723,772
(4,049) (7,120) Bills payable (234,774) (412,819)
26,988 (39,119) Other liabilities - net 1,564,739 (2,268,055)
------------------ ------------------ ------------------ ------------------
263,928 173,218 15,302,101 10,042,898
------------------ ------------------ ------------------ ------------------
(96,721) (31,856) Cash inflow/(outflow) before tax and other payments (5,607,703) (1,847,002)
(38,736) (43,122) Income tax paid (2,245,834) (2,500,111)
------------------ ------------------ ------------------ ------------------
(135,457) (74,978) Net cash outflow from operating activities (7,853,537) (4,347,113)
CASH FLOW FROM INVESTING ACTIVITIES
8,725 (66,188) Investments (excluding Government Securities) 505,832 (3,837,467)
4,453 3,878 Dividend income received 258,180 224,840
(7,444) (11,672) Fixed capital expenditure (431,567) (676,705)
1,786 2,172 Proceeds from sale of fixed assets 103,491 125,946
------------------ ------------------ ------------------ ------------------
7,520 (71,810) Net cash inflow from investing activities 435,936 (4,163,386)
CASH FLOW FROM FINANCING ALffIVlT1ES
137,983 -- Subscription towards future issue of right shares 8,000,000 --
(141,348) 222,568 Borrowings from other banks, agents etc. (8,195,050) 12,904,138
------------------ ------------------ ------------------ ------------------
(3,365) 222,568 Net cash inflow from financing activities (195,050) 12,904,138
------------------ ------------------ ------------------ ------------------
(131,302) 75,780 Increase/(decrease) in cash and cash equivalents for the year (7,612,651) 4,393,639
Exchange adjustment on translation of balances of
(4,422) 2,630 foreign branches, subsidiaries and joint ventures (256,354) 152,439
------------------ ------------------ ------------------ ------------------
(135,724) 78,410 (7,869,005) 4,546,078
806,107 727,697 Cash and cash equivalents at the beginning of the year 46,736,713 42,190,635
------------------ ------------------ ------------------ ------------------
670,383 806,107 Cash and cash equivalents at the end of the year 38,867,708 46,736,713
========== ========== ========== ==========
Cash and cash equivalents at the end of the year
221,953 391,977 Cash 12,869,044 22,726,139
435,197 367,335 Balances with other banks 25,231,990 21,297,457
13,223 46,795 Money at call and short notice 768,674 2,713,117
------------------ ------------------ ------------------ ------------------
670,383 806,107 38,867,708 46,736,713
========== ========== ========== ==========
The annexed notes form an integral part of these accounts.
Zakir Mahmood Dr. Shamsh Kassim Lakha
PRESIDENT/CHIEF EXECUTIVE OFFICER DIRECTOR
Ebrahim Sidat Mohsin Aziz
DIRECTOR DIRECTOR
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED DECEMBER 31, 2000
Rupees '000
RESERVES
Share Other Tier I Capital Statutory General Accumulated Total
Capital Capital Habib Bank Joint Loss
Limited Ventures
Balance as at December 31, 1998 12,178,495 -- 970,298 3,314,440 -- 1,736,357 (9,060,224) 9,139,366
(Loss) after taxation for the
year ended December 31, 1999 -- -- -- -- -- -- (8,874,165) (8,874,165)
Effect of translation of net investment
in foreign branches -- -- 152,439 -- -- -- -- 152,439
------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------
Balance as at December 31, 1999 12,178,495 -- 1,122,737 3,314,440 -- 1,736,357 (17,934,389) 417,640
Profit after taxation for the
year ended December 31, 2000 -- -- -- -- -- -- 609,525 609,525
Share of statutory reserves of joint ventures -- -- -- -- 429,300 -- (429,300) --
Transferred to Statutory Reserves -- -- -- 121,905 -- -- (121,905) --
Effect of translation of net investment in
foreign branches, subsidiaries and
joint ventures -- -- (256,354) -- -- -- -- (256,354)
Other Trier Capital -- 8,000,000 -- -- -- -- -- 8,000,000
------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------
Balance as at December 31, 2000 12,178,495 8,000,000 866,383 3,436,345 429,300 1,736,357 (17,876,069) 8,770,811
========== ========== ========== ========== ========== ========== ========== ==========
The annexed notes form an integral part of these accounts.
Zakir Mahmood Dr. Shamsh Kassim Lakha
PRESIDENT/CHIEF EXECUTIVE OFFICER DIRECTOR
Ebrahim Sidat Mohsin Aziz
DIRECTOR DIRECTOR
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED DECEMBER 31, 2000
1. STATUS AND NATURE OF BUSINESS
Habib Bank Limited is incorporated in Pakistan and is engaged in commercial banking and related services in
Pakistan and overseas. The Bank operates 1,701 (1999: 1,705) branches inside Pakistan and 54 (1999: 55)
branches outside the country (including the Karachi Export Processing Zone branch).
2. BASIS OF PRESENTATION
In accordance with the directives of the Federal Government regarding the shifting of the banking system to
Islamic modes, the State Bank of Pakistan has issued various circulars from time to time. Permissible forms of
trade-related modes of financing include purchase of goods by the banks from their customers and immediate
resale to them at appropriate mark-up in price on deferred payment basis. The purchases and sales arising
under these arrangements are not reflected in these accounts as such but are restricted to the amount of facility
actually utilised and the appropriate portion of mark-up thereon.
The US Dollar amounts shown in the financial statements are stated solely for information convenience. For
the purpose of translation to US Dollars, the rate of Rs. 57.9783 has been used for both 1999 and 2000.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3.1 Basis of Preparation
These accounts have been prepared in accordance with the requirements of the Companies Ordinance,
1984, the Banking Companies Ordinance, 1962, International Accounting Standards as applicable in Pakistan
and State Bank of Pakistan circular No.31 dated August 13, 1997 and are in conformity with the accepted
accounting policies of financial institutions in Pakistan.
3.2 Accounting convention
These accounts have been prepared under the historical cost convention, except that certain fixed assets and
investments have been included at revalued amounts and certain exchange elements referred to in note 3.10
have been incorporated in the book value of the relevant assets and liabilities.
3.3 Revenue recognition
Loans and advances and investments
Income on loans and advances, dividend from investments (other than those which am accounted for using
the equity method), and return on investments are recognised on an accrual basis. Where debt securities are
purchased at a premium or discount, those premiums are amortised through the profit and loss account over
the remaining maturity.
Interest or mark-up recoverable on classified loans and advances and investments is recognised on receipt
basis. Interest / mark-up on rescheduled / restructured loans and advances and investments is recognised as
per the requirements of the State Bank of Pakistan.
Lease financing
Financing method is used in accounting for income for lease financing. Under this method, the unearned
lease income (excess of the sum of total lease rentals and estimated residual value over the cost of leased
assets) is deferred and taken to income over the term of the lease period so as to produce a constant periodic
rate of return on the outstanding net investment in lease. Unrealised lease income is suspensed, where nec-
essary, in accordance with the requirements of the prudential regulations of the State Bank of Pakistan
Gains/losses on termination of lease contracts, documentation charges, front end fees and other lease
income are recognised as income on a receipt basis.
Letters of credit and guarantees
Commission on letters of credit and guarantees is recognised on a receipt basis.
3.4 Taxation
Current Taxation
Provision for current taxation is based on taxable income at the current rates of taxation after taking into
account tax credits and rebates available, if any.
Deferred Taxation
Deferred tax is provided using the liability method on all major temporary differences between the carrying
amounts for financial reporting purposes and amounts used for taxation purposes, except that deferred tax
liabilities associated with invents in subsidiary and joint venture companies are recognised to the extent
that these temporary differences will reverse in the foreseeable future. In addition the bank also records
deferred tax asset on unabsorbed tax losses to the extent they will be available for set off against future tax-
able profits. Net deferred tax assets are reduced to the extent that it is no longer probable that the related tax
benefit will be realised.
3.5 Investments
Securities
The bank values its security holdings on market value, in accordance with the guidelines given in the State
Bank of Pakistan circular BSD No. 20 dated August 4, 2000. Any unrealised surplus/deficit arising on such
revaluation is taken directly to "Surplus/deficit on revaluation of securities" in the balance sheet. Under the pre-
vious policy followed by the bank, the securities were stated at the lower of cost and market value determined
on an aggregate portfolio basis. Where an active market is not available securities are continued to be stated
at the lower of cost and break-up value. Provision for diminution in the value of these securities is made after
considering permanent impairment, if any in their value. The above change in accounting policy had no
impact on the profit and loss account for the year.
The bank enters into transactions of repurchase (Repo) and resale (Reverse Repo) of securities at contracted
rates for specified periods of time.
These are recorded as follows:
i) in case of sale under repurchase obligations, the securities are deleted from investments and the
charges arising from the differential in sale and repurchase value are accrued on a prorata basis and
recorded under cost/return on deposits, borrowings etc. Upon repurchase, the securities are reinstated at
their respective original cost.
ii) in the case of purchase under resale obligations, the securities are included under investments at
the contracted purchase price and the differential of the contracted purchase and resale prices is amor-
tised over the period of the contract and recorded under mark-up/interest and discount and/or return
earned. Upon resale the securities are deleted from the portfolio at the original purchase price.
iii) securities sold under repurchase agreement are revalued in accordance with the accounting poli-
cy mentioned above, whereas securities held with a commitment to resale at a contracted sale price are
not revalued.
Subsidiaries, Associates and Joint Ventures
The bank records its investments in subsidiaries, associates and joint ventures on the basis of equity
accounting. Previously these investments were being carded at cost. The investment in undertakings
where the bank does not exercise significant influence or control and those held with a view for dispos-
al in the near future continue to be stated at cost. This change would result in a more accurate reflec-
tion of the bank's investment in these undertakings and is the recommended treatment in the relevant
International Accounting Standards. The effect of the change in accounting policy has been incorporated
in the net profit or loss for the current year and the relevant Proforma information is given in note 18
to the accounts.
Gain / Loss on disposal of investments during the year are taken to the profit and loss account.
3.6 Loans and advances
Loans and advances are stated net of provision for loan losses. Provision for loan losses is made in
accordance with the requirements of the State Bank of Pakistan and charged to the profit and loss
account.
3.7 Net investment in finance lease
The net investment in finance lease is stated at cost less specific provision. Specific provisions are made
in accordance with the requirements of the State Bank of Pakistan.
3.8 Operating fixed assets and depreciation
Operating fixed assets, except leasehold land and capital work-in-progress, are stated at cost or revalued
amount less accumulated depreciation. Leasehold land is stated at revalued amount while capital work-
in-progress is stated at cost. Cost of fixed assets of foreign branches includes exchange differences aris-
ing on translation at year end rates. Depreciation is calculated so as to write off the assets over their
expected economic lives at varying rates and methods depending on the nature of the asset and the
country of its location.
Depreciation on additions is charged from the month in which the asset is put to use while no depreciation
is charged in the month in which the assets are deleted. Normal repairs and maintenance are charged to
the profit and loss account as and when incurred. However, major repairs and renewals are capitalised.
Gains and losses on sale of fixed assets are included in income currently.
3.9 Employees benefits
The bank operates the following schemes for its employees:
a) Old Scheme
For employees who did not opt for the new scheme the bank operates:
i) Approved funded gratuity scheme.
ii) Approved contributory provident fund.
b) New Scheme
For new employees and for those who opted for the new scheme introduced in May 1977, the
bank operates:
i) Approved funded pension scheme.
ii) Non-contributory provident fund.
The bank accounts for pension and gratuity schemes based on actuarial valuation carried out using the
Projected Unit Credit (PUC) method. Any surplus / deficit arising in actuarial valuation of these schemes is
recognised in the year in which it arises.
c) Pest Retirement Medical Benefits
The bank also provides post retirement medical benefits to its employees. Provision is made in the
accounts for this benefit based on actuarial valuation carded out using the Projected Unit Credit (PUC)
method.
d) Employees' compensated absences
The bank also makes annual provisions in the accounts for its liabilities towards vested compensated
absences accumulated by its employees. This liability is estimated on the basis of actuarial valuation.
3.10 Foreign currencies
Assets and liabilities in foreign currencies including accounts of foreign branches are expressed in rupee
terms at the rates of exchange ruling on the balance sheet date or at contracted rates, except forward
exchange contracts and foreign bills purchased which are valued at rates applicable to their respective
maturities.
Translation gains and losses are included in the profit and loss account, except those arising on the trans-
lation of the net investment in foreign branches, subsidiaries and joint ventures, which are taken to the
capital reserves.
Commitments for outstanding forward contracts and repurchase / resale transactions are translated at
contractual rates.
3.11 Cash and cash equivalents
Cash and cash equivalents include cash, balances with banks in current and deposit accounts and
money at call and short notice.
2000 1999
(Rupees '000)
4. CASH
In hand
Local currency 4,054,671 4,242,025
Foreign currency 906,403 1,177,371
------------------ ------------------
4,961,074 5,419,396
With National Bank of Pakistan in current account 1,367,269 1,945,389
With State Bank of Pakistan in:
Current account 673,658 12,476,900
Special deposit account
- Export refinance -- --
- Deposit account -- --
- Others 100 100
------------------ ------------------
100 100
Balances with other central banks including deposit accounts 5,866,943 2,884,354
------------------ ------------------
12,869,044 22,726,139
========== ==========
5. BALANCES WITH OTHER BANKS
In Pakistan - deposit accounts - note 5.1 1,799,521 --
Outside Pakistan
Current accounts 4,434,297 2,980,177
Deposit accounts 18,998,172 18,317,280
------------------ ------------------
23,432,469 21,297,457
------------------ ------------------
25,231,990 21,297,457
Less: Provision for outstanding balances in current accounts (757,332) (827,332)
------------------ ------------------
24,474,658 20,470,125
========== ==========
5.1 This includes foreign currency placements made with the State Bank of Pakistan amounting to
Rs. 1,767.879 million.
6. INVESTMENTS
Investment securities
Federal and Provincial Government Securities:
Federal Investment Bonds/Pakistan Investment Bonds 9,061,861 9,467,352
Treasury Bills 26,513,735 18,170,746
Others
Central Government Securities 4,324,249 4,593,937
Provincial Government Securities 701,511 701,511
Government of Pakistan Guaranteed Bonds 12,854,874 11,376,036
WAPDA Bonds 250,000 1,545,000
Government of Pakistan US Dollar/Euro Bonds 5,500,257 5,904,877
Overseas Government Securities 4,634,575 4,157,675
Debt due from a public sector company for which bond
guaranteed by the Government of Pakistan is to be issued - note 6.3 573,593 1,449,759
Investment in subsidiary companies and
joint ventures - note 6.6 1,176,249 449,985
Investment in associated undertakings- note 6.5 243,300 243,300
Fully paid up ordinary shares:
Listed companies 2,520,471 2,545,977
Unlisted companies 508,105 140,608
NIT units 365,989 365,989
Debentures, Bonds, Participation Term Certificates,
Preference shares, Term Finance Certificates
end other investments 4,498,686 4,563,828
------------------ ------------------
73,727,455 65,676,579
Less: Provision for diminution in the value of investments (1,203,531) (1,060,981)
Surplus on revaluation of securities 1,428 --
------------------ ------------------
72,525,352 64,615,598
========== ==========
6.1 At December 31, 2000, the market value of quoted investments including own holding of domestic trea-
sury bills was Rs 20,988,014 million (1999: Rs 14,335.717 million) as against their book value of Rs
20,986.585 million (1999: Rs 13,649.985 million).
6.2 At December 31, 2000, book value of unquoted investments was Rs 51,537.338 million (1999: Rs
50,965.613 million).
6.3 This amount represents the principal exposure of the bank against Ghee Corporation of Pakistan. The
bank is currently negotiating with the Ministry of Finance for issuance of bend against this debt.
6.4 Investments include Rs 548.191 million (1999: Rs 548.191 million) held by the State Bank of Pakistan
and National Bank of Pakistan against TT/DD discounting facilities and demand loan facilities sanc-
tioned to the bank.
6.5 This represents the investment of the bank in First Women Bank Limited and Bank Al-Falah Limited. The
investment of the bank in these entities have not been accounted for using the equity method and are
being carried at cost as the bank does not have significant influence over these entities.
6.6 Investment in subsidiary companies and joint ventures
Equity method
Habib Finance (Australia) Limited - wholly owned
Cost 114,480 114,480
Sham of profits 10,152 --
Exchange translation reserve 207,243 140,929
Dividend received during the year -- --
------------------ ------------------
331,875 255,409
========== ==========
Habib Finance International Limited, Hongkong - wholly owned
Cost 59,894 59,894
share of profits 22,818 --
Exchange translation reserve 163,557 51,146
Dividend received during the year -- --
------------------ ------------------
246,267 111,040
========== ==========
Habib Bank Financial Services (Private) Limited - wholly owned
Cost 32,500 32,500
Share of profits 85,199 --
Dividend received during the year -- --
------------------ ------------------
117,699 32,500
========== ==========
Habib Nigeria Bank limited - Holding 40% (1999: 40%)
Cost 90,731 90,731
Share of profits 546,690 --
Share of statutory reserves 399,431 --
Exchange translation reserve (620,316) (47,045)
Dividend received during the year (35,865) --
------------------ ------------------
380,671 43,686
========== ==========
Himalayan Bank Limited - Holding 20% (1999: 20%)
Cost 71,971 7,197
Share of profits 80,360 --
Share of statutory reserves 29,869 --
Exchange translation reserve (2,070) 153
Dividend received during the year (15,619) --
------------------ ------------------
99,737 7,350
------------------ ------------------
1,176,249 449,985
========== ==========
7. LOANS AND ADVANCES
Loans, cash credits, overdrafts etc:
In Pakistan - note 10.1 1,581,357,111 141,043,259
Outside Pakistan 28,770,157 29,801,478
------------------ ------------------
186,905,868 170,844,737
Bills discounted and purchased
(excluding Treasury Bills)
Payable in Pakistan 5,194,086 7,180,439
Payable outside Pakistan 11,448,448 10,077,092
------------------ ------------------
16,642,534 17,257,531
------------------ ------------------
203,548,402 188,102,268
Provision against non-performing
loans and advances- note 7.2 (29,725,497) (28,284,423)
------------------ ------------------
173,822,905 159,817,945
========== ==========
Loans and advances include Rs 54,054.58 million (1999: Rs. 58,393.45 million) which have been placed
on non-performing status. At December 31, 2000 non-performing, loans include government guaranteed
debts of Rs. 1,149.05 million (1999: Rs 508.02 million).
Advances include an amount of Rs. 4,778.238 million to Pakistan Steel Mills Corporation (PASMIC)
which is guaranteed by the Government of Pakistan under Ministry of Finance approval. The bank,
alongwith other financial institutions, is currency finalising the loan documentation and issuance of gov-
ernment guarantee with PASMIC and Government of Pakistan. The amount due from PASMIC is not
included in the non performing loans stated above.
7.1 Particulars of loans and advances
In local currency 143,261,354 128,986,469
In foreign currencies 30,561,551 30,831,376
------------------ ------------------
173,822,905 159,817,845
========== ==========
Debts considered good in respect
of which the bank is fully secured 149,437,698 134,726,443
Debts considered good for which
the bank holds no other security
than the debtors' personal security 6,952,916 7,351,621
Debts considered good secured by
the personal liabilities of one or
more parties in addition to the
personal security of the debtors 17,382,291 17,739,781
Debts considered doubtful or
bed not provided for -- --
------------------ ------------------
173,822,905 159,817,845
========== ==========
Balance Maximum total
outstanding amount of loans
as at and advances
Dec. 31, 2000 including
temporary advances
granted during
the year
(Rupees '000)
Debts due by directors or executives
of the bank or any of them either
severally or jointly with any other person 86,232 91,071
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 39,420 47,000
Debts due by subsidiary companies,
controlled firms, managed modarabas
and other associated undertakings -- 53,309
7.2 Particulars of provision against non-performing loans and advances - Specific Provision
2000 1999
(Rupees '000)
Opening balance 28,284,423 23,048,988
Exchange adjustments 556,906 769,062
Transfer of mark-up previously held in suspense account - Note 7.2.1 -- 1,370,000
Charge for the year- Note 7.2.2 1,222,172 3,697,058
Amounts written off (208,438) (511,206)
Reversals (129,568) (89,479)
------------------ ------------------
Closing balance 29,725,497 28,284,423
========== ==========
Provision against:
Loans and advances to banks 2,169,647 1,975,223
Loans and advances to others 27,555,850 26,309,200
------------------ ------------------
29,725,497 28,284,423
========== ==========
7.2.1 Mark-up in suspense, directly netted off from loans and advances in 1999, included an amount of Rs 1.370
million which was held in excess and was utilised as a provision against classified debts. This amount has
now been reclassified and included in the total provision held against these debts. This reclassification did
not have any effect on the reported profit/(loss) after taxation for the current year or the prior year.
7.2.2 The Prudential Regulation (BPRD) No. 9 of April 27, 2000 requires banks to make provision against
classified loans and allows deduction of liquid assets and mortgaged/pledged assets held as collateral
against these loans. The bank commenced the process of obtaining valuations of mortgaged/pledged
assets in 1999 which continued during 2000. Given the number and the geographic spread of the
bank's customers it was not possible to complete this exercise during the year. However, the bank
achieved coverage of over 85% (1999: 76%) of its domestic collateralised non-performing loan portfolio
and the ratio of the values of the mortgaged/pledged assets held as collateral has been extrapolated
over the total domestic non-performing collateralised portfolio of the bank. Through this exercise the
management has estimated the expected value of the remaining collateral held against the remaining
collateralised non-performing portfolio of the bank. The benefit of these collaterals to the provisioning
requirement amounts to Rs 2,960 million. The provisioning requirement so determined has been fully
provided by the bank. In addition the requirement for the oversees branches has also been fully provided
as recommended by the auditors of these branches.
7.3 Amounts written-off during the year in respect of domestic operations
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 a person during the year ended December 31, 2000 is given in the annexure to these accounts.
8. NET INVESTMENT IN FINANCE LEASE
Lease installments receivable 461,568 59,766
Add: Residual value 31,585 6,042
------------------ ------------------
493,153 65,808
Less: Unearned income 177,632 16,605
------------------ ------------------
315,521 49,203
Less: Current portion - note 10 37,409 16,821
------------------ ------------------
278,112 32,382
Less: Provision against investment in finance lease 10,753 --
------------------ ------------------
267,359 32,382
========== ==========
9. OPERATING FIXED ASSETS
Description Cost/Revaluation Accumulated Depreciation Book Value
At Additions/ At At Charge for At At Rate of
January (deletions) December January the year/ December December depreciation
1, 2000 during the year 31, 2000 1, 2000 (depreciation) 31, 2000 31, 2000 %
on deletions)
(Rupees in '000)
Leasehold land 115,593 -- 115,593 -- -- -- 115,593 --
Buildings on leasehold land 4,972,610 540,252 5,406,230 517,315 237,483 742,863 4,663,367 5
(106,632) (11,935)
Furniture, fixture and 2,294,437 296,966 2,508,465 1,303,498 236,859 1,467,618 1,040,847 10-25
office equipment (82,938) (72,739)
Vehicles 423,804 26,501 412,837 295,049 46,250 309,233 103,604 20
(37,468) (32,066)
------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------
2000 7,806,444 863,719 8,443,125 2,115,862 520,592 2,519,714 5,923,411
(227,038) (116,740)
========== ========== ========== ========== ========== ========== ==========
1999 7,294,830 673,194 7,806,444 1,771,429 444,447 2,115,862 5,690,582
(161,580) (100,014)
========== ========== ========== ========== ========== ========== ==========
2000 1999
(Rupees '000)
9.1 Surplus on revaluation of properties
Surplus on revaluation as at January 1 3,813,567 3,848,525
Lass: Realised on disposal of revalued properties during the year (83,213) (34,958)
Add: Surplus on revaluation of bank's properties in Colombo,
Sri Lanka branch 31,843 --
------------------ ------------------
Surplus on revaluation as at December 31 3,762,197 3,813,567
========== ==========
The domestic properties of the bank were revalued in previous years, by independent valuers, on
December 31, 1996, June 25, 1997 and December 31, 1997 respectively on the basis of market value.
These revaluations had resulted in a cumulative surplus of Rs. 3,848.525 million out of which an amount
of Rs 34.958 million was realised in 1999 and Rs 83.213 million was realised during the year on disposal
of certain revalued properties.
The bank's properties in Colombo were revalued on December 26 and 27 1998, by A. Y Daniel and Sons,
licensed valuers, on market value basis. The revaluation resulted in a surplus of Rs 63.686 million
However, as per the regulations of Central Bank of Sri Lanka only 50% of the above revaluation was record-
ed in the books of account and credited to the branch adjustment account. During the current year, the bal-
ance in the branch adjustment account has been transferred to the surplus on revaluation of properties.
Of the revaluation surplus Rs 3,240.516 million (1999: Rs. 3,452.983 million) remains undepreciated at
December 31, 2000 and is included in the book value of these assets.
9.2 Details of disposals of fixed assets
Original Accumulated Book Sale Mode of Particulars of buyers
Cost/ Depreciation Value proceeds disposal
Revaluation
Amount
(Rupees '000)
Buildings on lease 5,000 582 4,418 5,350 Tender M/s Amin & Partners
hold land 5,000 675 4,325 5,200 Tender Mr. Nadeem Ahmed
79,181 10,678 68,503 50,000 Negotiation M/s Zelins (Private) Limited
------------------ ------------------ ------------------ ------------------
89,181 11,935 77,246 60,550
Vehicles 510 408 102 242 Tender Mr. Hakeem Khan
Vehicles 258 87 171 171 Tender Mrs Anjum Fazal
Vehicles 288 106 182 182 Negotiation Mr. Amir Basra (ex employee)
Vehicles 869 403 466 468 Negotiation Mr. Rashid A. Khan (ex employee)
Vehicles 675 214 461 461 Insurance proceeds National Insurance Corporation
Vehicles 587 172 415 415 Insurance proceeds National Insurance Corporation
Vehicles 269 80 189 189 Negotiation Mr. Amir Amjad (ex employee)
Vehicles 269 80 189 189 Negotiation Ms Sobia Chugtai (ex employee)
Vehicles 577 -- 577 577 Insurance proceeds National Insurance Corporation
------------------ ------------------ ------------------ ------------------
4,302 1,550 2,752 3,277
Furniture and Fixtures 513 353 160 185 Tender Al Safi Cooling Company
2,954 773 2,181 2,181 Negotiation Shaukat Tarin (ex employee)
------------------ ------------------ ------------------ ------------------
3,467 1,126 2,341 2,366
Assets having
book value of less
than Rs 100,000
& cost of less
than Rs 1 million     130,088 102,129 27,959 37,298
------------------ ------------------ ------------------ ------------------
Total 227,038 116,740 110,298 103,491
========== ========== ========== ==========
2000 1999
(Rupees '000)
10. OTHER ASSETS
Income/mark-up accrued on loans, advances and
investments - note 10.1 8,498,181 6,307,993
Prepaid exchange risk fee 378,219 509,466
Receivable from staff retirement benefit funds - net 148,769 --
Other advance deposits, advance rent and
other prepayments 583,872 1,237,854
Stationery and stamps on hand [net of provision amounting
to Rs 72.41 million (1999: Rs. 72.41 million) ] 110,942 203,298
Current portion of net investment in finance lease - note 8 37,409 16,821
Taxation (payments less provision) 14,102,962 12,322,128
Deferred taxation - note 10.2 6,000,000 6,000,000
Due from Government of Pakistan -- 1,218,003
Others [net of provisions amounting to Rs 15.236 million;
(1999: Rs. 27.233 million)] 386,330 623,316
------------------ ------------------
30,246,684 28,438,876
========== ==========
10.1 Mark-up receivable is stated after deducting interest in suspense held against it. An amount of Rs 5,927
million which was netted off from loans and advances in 1999 has now been reclassified here for com-
parative purposes. There is no impact of this reclassification on the profit/(loss) after taxation for the
current year or the prior year.
10.2 An amount of Rs 6,000 million has been recognised as the potential benefit expected to crystallise in the
foreseeable future. In addition to this amount, the bank has additional tax losses for which no benefit
has been recognised.
11. DEPOSITS AND OTHER ACCOUNTS
Savings deposits 138,449,865 122,184,027
Current accounts 39,470,292 40,563,829
Fixed deposits 75,512,127 77,107,508
Deposits and other accounts of banks 12,319,040 11,923,824
------------------ ------------------
265,751,324 251,779,188
========== ==========
11.1 Particulars of deposits and other accounts
In local currency 184,013,006 175,676,239
In foreign currencies [includes Rs 24,784 million
(1999: Rs 21,995 million) of domestic branches] 81,738,318 76,102,949
------------------ ------------------
265,751,324 251,779,188
========== ==========
The exchange risk on foreign currency deposits held by domestic branches is fully hedged through inter-
bank placements and currency swaps with other counterparty banks and the State Bank of Pakistan.
12. BORROWINGS FROM OTHER BANKS, AGENTS ETC.
In Pakistan 16,664,718 25,729,245
Outside Pakistan 7,258,871 6,389,394
------------------ ------------------
23,923,589 32,118,639
========== ==========
12.1 Particulars of borrowings from other banks, agents etc.
In local currency 16,664,718 25,729,245
In foreign currencies 7,258,871 6,389,394
------------------ ------------------
23,923,589 32,118,639
========== ==========
12.2 Secured
Loans from banks and other financial
institutions -- --
Loans from subsidiary companies,
managed modarabas and associated -- --
undertakings
Loans from directors (including chief
executive) of the bank -- --
Loans from State Bank of Pakistan
Export refinance 13,216,691 15,365,992
Locally manufactured machinery 1,072,696 1,530,928
Others 19,000 19,000
------------------ ------------------
14,308,387 16,915,920
Unsecured
In Pakistan
International Development Agency (IDA loan) 296,331 388,325
Interbank call money borrowing 2,060,000 8,425,000
------------------ ------------------
2,356,331 8,813,325
Outside Pakistan
Overdrawn nostro accounts 929,243 701,840
Overseas branches borrowings 6,329,628 5,687,554
------------------ ------------------
7,258,871 6,389,394
------------------ ------------------
9,615,202 15,202,719
------------------ ------------------
23,923,589 32,118,639
========== ==========
13. OTHER LIABILITIES
Mark-up / interest on loans / borrowings 368,818 410,005
Profit payable on PLS deposits and other accounts 4,782,922 5,886,373
Interest on foreign currency deposits 816,567 822,875
Branch adjustment account 4,686,139 2,212,913
Accrued expenses 375,871 444,862
Security deposit received in respect of finance lease 31,585 6,152
Staff welfare fund 58,554 --
Provision for employees' compensated absences 920,174 815,000
Provision for post retirement medical benefits 410,400 --
Others 891,455 628,575
------------------ ------------------
13,340,485 11,226,755
========== ==========
14. SHARE CAPITAL
Authorised 2,000,000,000 ordinary shares of Rs 10 each 20,000,000 20,000,000
========== ==========
Issued, subscribed and paid up:
Fully paid up ordinary shares of Rs 10 each
2000 1999
1,210,249,500 1,210,249,500 Issued for cash 12,102,495 12,102,495
7,600,000 7,600,000 Issued as bonus shares 76,000 76,000
------------------ ------------------ ------------------ ------------------
1,217,849,500 1,217,849,500 12,178,495 12,178,495
========== ========== ========== ==========
In the extraordinary general meeting held subsequent to the year end on March 26, 2001, the authorised
share capital of the bank has been increased to Rs 30 billion divided into 3,000,000,000 ordinary shares
of Rs 10 each.
15. OTHER TIER I CAPITAL
This represents an amount of Rs 8 billion received from the State Bank of Pakistan in the current year as
subscription against future issue of right shares.
16. RESERVE FUND & OTHER RESERVES
Statutory TOTAL
Capital Habib Bank Joint General 2000 1999
Limited Ventures
(Rupees '000)
Balance at the beginning
of the year 1,122,737 3,314,440 -- 1,736,357 6,173,534 6,021,095
Share of statutory reserves of
joint ventures -- -- 429,300 -- 429,300 --
Transferred from profit
and loss account -- 121,905 -- -- 121,905 --
Exchange (loss) / gain on translation
of net investment in foreign branches,
subsidiaries and joint ventures (256,354) -- -- -- (256,354) 152,439
------------------ ------------------ ------------------ ------------------ ------------------ ------------------
Balance at the end of the year 866,383 3,436,345 429,300 1,736,357 6,468,385 6,173,534
========== ========== ========== ========== ========== ==========
2000 1999
(Rupees '000)
17. Surplus on revaluation of securities
Treasury Bills (71,707) --
Listed securities 73,135 --
------------------ ------------------
1,428 --
========== ==========
18. As mentioned in note 3.5 the bank has changed its accounting policy for accounting for investments in             ~
subsidiaries, associates and joint ventures to conform to the preferred treatment in the relevant
International Accounting Standards. The cumulative effect of this change in policy has been adjusted in
the financial statements for the current year whereby the income for the year before taxation is higher
by Rs. 1,066.848 million.
Had the accounting policy been applied retrospectively, dividend income and share of profit from sub-
sidiaries, associates and joint ventures for the current year would have been Rs. 514.175 million (1999:
Rs 377.199 million).
19. BILLS FOR COLLECTION
Payable in Pakistan 31,576,877 30,378,934
Payable outside Pakistan 23,787,364 21,254,957
------------------ ------------------
55,364,241 516,331,891
========== ==========
20. CONTINGENT LIABILITIES AND COMMITMENTS
CONTINGENCIES
Money for which the bank is contingently liable:
a) Contingent liability in respect of guarantees given on behalf
of directors or officers or any of them (severally or jointly)
with any other person, subsidiaries and associated
undertakings - note 20.1 57,978 --
b) Contingent liability in respect of guarantees given favouring:
i) Government 6,241,353 7,593,593
ii) Banking companies and other financial institutions 15,986,547 16,543,479
iii) Others 6,642,632 6,020,298
c) Liability on bills of exchange rediscounted -- --
Claims against the bank not acknowledged as debts 32,927,790 24,816,418
COMMITMENTS
Commitments in respect of forward exchange contracts
Sale 12,391,606 10,548,154
Purchase (including an amount of Rs. 15,998.670 million
(1999: 18,701.865 million) in respect of foreign currency
deposits under the old foreign currency accounts
scheme surrendered to the State Bank of Pakistan
alongwith the anticipated interest thereon) - note 20.2 32,800,877 29,545,487
Commitments in respect of operating leases -- --
Capital expenditure contracted but not provided for 75,374 114,097
Commitments in respect of repurchase transactions 7,425,215 1,850,000
Commitments in respect of resale transactions 11,059,624 925,000
20.1 This represents guarantee issued by the bank to the Bank of New Zealand in connection with a financing
facility given by the Bank of New Zealand for US $ One million to Habib Finance (Australia) Limited
(wholly owned subsidiary of the bank). No amount has been utilized by the subsidiary company under
this facility at year end.
20.2 These also include an amount of Rs. 3,480 million on account of sell-buy swaps entered into with the
State Bank of Pakistan.
20.3 Taxation
The income tax returns of Habib Bank Limited have been submitted upto and including the Bank's
financial year 1999. The total shortfall in provision against tax liability arising as a result of the
assessments made uptil the financial year 1998 by the Income Tax Department amounted to Rs.
9,705 million. In computing the taxable income, the Income Tax Department has disallowed various
items including some provisions for bad and doubtful debts and added income, which the bank sus-
pended in accordance with State Bank of Pakistan's requirements, amounting to approximately Rs.
12,419 million. Appeals against the assessments for the financial years from 1985 to 1998 are pend-
ing before the appellate authorities against various disallowances. The appeals of the bank in respect
of financial years 1992 to 1996 have been disallowed by the Income Tax Appellate Tribunal in
respect of interest/mark-up in suspense while the Tribunal has asked the Income Tax Department to
reconsider the disallowance of provision for bad and doubtful debts. The bank has challenged the
order of the Tribunal in respect of interest/mark-up in suspense in the High Court where the matter is
currently pending. The bank has also filed appeals with the appellate authorities regarding disal-
lowances made in the financial years 1989 to 1998 on account of Double Income Tax Belief relating
to Azad Jammu and Kashmir branches.
The management is confident that the eventual outcome of these cases will be in favour of the bank.
21. DIVIDEND INCOME AND SHARE OF PROFIT OF SUBSIDIARIES AND JOINT VENTURES
Dividend income 334,696 257,575
Share of profit of subsidiaries / joint ventures 1,174,517 --
------------------ ------------------
1,509,213 257,575
========== ==========
22. OTHER OPERATING INCOME
Income from dealing in foreign currencies 1,249,130 839,670
Incidental charges 666,953 736,334
Rent on Lockers 110,720 88,949
Rent on property 79,813 78,027
Miscellaneous earnings 630,870 605,567
------------------ ------------------
2,737,486 2,348,647
========== ==========
23. ADMINISTRATIVE EXPENSES
Salaries, allowances etc. 7,997,591 7,327,444
Staff retirement benefits - Note 23.1 348,023 83,073
Provision for employees' compensated absences - Note 23.2 105,174 815,000
Staff welfare fund 56,554 --
Non-executive directors' fees 16 19
Brokerage and commission 8,950 780
Rent, taxes, insurance, electricity etc 895,100 847,694
Legal and professional 263,764 121,976
Communications 42,277 66,994
Repairs and maintenance 105,647 88,405
Rentals of operating leases -- 1,700
Stationery and printing 161,188 143,280
Advertisement and publicity 80,621 222,308
Auditors' remuneration - Note 23.3 35,310 40,550
Depreciation - Note 9 520,592 444,447
Entertainment 42,270 60.52
Travelling 224,441 204,621
Conveyance and motor car 72,133 72,823
Remittance charges 39,866 47,823
Others 1,072,014 1,044,657
------------------ ------------------
12,071,531 11,641,136
========== ==========
The administrative expenses include expenses of overseas branches of the bank amounting to
Rs. 2765.269 million (1999: Rs. 2545.932 million) translated at exchange rate of Rs. 57.9783
(1999: Rs. 51.8988).
23.1 Staff Retirement benefits
23.1.1 As mentioned in note 3.9, the staff retirement benefits of the bank include schemes for pension and
gratuity. Actuarial valuations of the schemes are carried out at least once in every three years and the
latest valuations were carded out at December 31, 1999 for the gratuity scheme and June 30, 2000 for
the pension scheme. Projected Unit Credit Method, using the following significant assumptions was
used for the valuation of these schemes:
- Expected rate of increase in salary level 10 - 12.5 percent per annum.
- Expected rate of return on funds invested 12 - 14 percent per annum.
The fair value of the schemes' assets and liabilities for the past services of employees at the latest valuation
date were as follows:
Pension Gratuity
(Rs in '000) (Rs in '000)
Fair value of plan assets 4,115,696 483,840
Present value of defined benefit obligation 3,955,397 461,460
------------------ ------------------
Surplus in the fund at the date of valuation 160,299 22,380
========== ==========
Estimated surplus on December 31, 2000 139,919 8,850
========== ==========
No payments were made to the funded schemes during the year as the schemes have significant surpluses.
An amount of Rs. 139.919 million was credited to the profit and loss account in respect of pension
scheme during the year while an amount of Rs. 8.850 million was credited in respect of gratuity scheme.
23.1.2 The liability of the bank in respect of medical benefits is based on actuarial valuation carried out as at
December 31, 1999, which after considering estimated liability for the year 2000 amounts to Rs. 2,052
million. This liability is being recognised over a period of five years and an amount of Rs. 410.4 million
has accordingly been charged to the profit and loss account in the current year.
23.2 Provision for employees' compensated absences is estimated on the basis of actuarial valuation carded
out as at December 31, 1999.
23.3 Auditors' remuneration
A.F. Ferguson Taseer Hadi Overseas 2000 1999
& Co. Khalid & Co. Auditors
(Rupees '000)
Audit fee 800 800 -- 1,600 1,400
Fee for audit of local
branches 1,500 1,500 -- 3,000 2,600
Fee for audit of foreign
branches -- -- 22,026 22,026 20,706
Special certifications/examinations
and sundry advisory services 965 823 408 2,196 8,766
Tax services -- 1,625 3,132 4,757 5,276
Out of pocket expenses 700 729 302 1,731 1,802
------------------ ------------------ ------------------ ------------------ ------------------
3,965 5,477 25,868 35,310 40,550
========== ========== ========== ========== ==========
2000 1999
(Rupees '000)
24. OTHER INCOME
Net profit on sale of fixed assets - Note 24.1 76,406 99,338
Liabilities no longer required written back -- 75,329
------------------ ------------------
76,406 174,667
========== ==========
24.1 The net profit on sale of fixed assets includes revaluation surplus of Rs. 83.213 million (1999: 34.958
million) realised on disposal of land and building during the year.
25. This represents hyper inflationary adjustment at one of the overseas branches of the bank.
26. TAXATION
Provision for current taxation represents minimum tax at the rate of 0.5% of turnover and taxation
charge of overseas branches.
27. REMUNERATION OF DIRECTORS AND EXECUTIVES
The aggregate amount charged in the accounts for remuneration, including all benefits, to the Chief 
Executive, Directors and Executives of the bank is as follows:
President and Chief Executive Directors Executives
2000 1999 2000 1999 2000 1999
Rupees in '000
Fees -- -- 16 19 -- --
Managerial remuneration 2,334 3,480 -- -- 49,415 55,860
Retirement benefits 525 -- -- -- 5,052 2,143
Rent and house maintenance  1,642 1,352 -- -- 22,703 22,879
Utilities      293 941 -- -- 6,247 8,039
Medical 82 108 -- -- 2,107 1,874
Conveyance/petrol expenses  165 121 -- -- 2,715 3,011
Others 1,541 418 -- -- 11,232 7,728
------------------ ------------------ ------------------ ------------------ ------------------ ------------------
6,582 6,420 16 19 99,471 101,534
========== ========== ========== ========== ========== ==========
Number of persons
(including those who worked
part of the year) 2 1 8 8 43 35
========== ========== ========== ========== ========== ==========
The President and certain Executives are provided with free use of the bank's maintained cars. The
President is also provided with household furnishing in accordance with his entitlement.
28. MATURITIES OF ASSETS AND LIABILITIES
30
Total Upto one Over one Over one Over five
Month month to year to years
One year five years
(Rupees '000)
ASSETS
Cash 12,869,044 5,634,732 1,367,269 100 5,866,943
Balances with other banks 24,474,658 14,960,002 9,514,656 -- --
Money at call and short notice 766,674 766,674 -- -- --
Investments 72,525,352 11,539,653 23,467,706 18,874,921 18,643,072
Loans and advances 173,822,905 34,596,480 83,816,129 43,703,373 11,706,923
Net investment in finance lease 267,359 -- -- 267,359 --
Operating fixed assets 5,923,411 43,383 477,209 1,811,274 3,591,545
Capital work in progress 30,671 -- -- 6,134 24,537
Other assets 30,246,684 2,202,068 8,059,167 19,791,354 194,095
------------------ ------------------ ------------------ ------------------ ------------------
320,926,758 69,742,992 126,702,136 64,454,515 40,027,115
========== ========== ========== ========== ==========
LIABILITIES
Deposits and other accounts* 265,751,324 48,169,289 30,478,807 22,959,912 164,143,316
Borrowings from other banks,
agents etc. 23,923,589 7,735,464 14,998,362 587,202 601,561
Bills payable 5,376,924 4,301,539 1,075,385 -- --
Other liabilities 13,340,485 6,306,589 5,016,367 710,639 1,306,890
------------------ ------------------ ------------------ ------------------ ------------------
308,392,322 66,513,881 51,568,921 24,257,753 166,051,767
========== ========== ========== ========== ==========
Net Gap 12,594,436 3,229,111 75,133,215 60,196,762 (126,024,652)
========== ========== ========== ========== ==========
Represented by
Shareholders equity 8,770,811
Surplus on revaluation of
securities 1,428
Surplus on revaluation of
fixed assets 3,762,197
------------------
12,594,436
==========
* The Savings Deposit Accounts have been classified as maturing over five years as these do not have
any contractual maturity. Further, it has been assumed that on a going concern basis these deposits
are not expected to fall below the current year's level.
28.1 The carrying value of financial assets included above approximate their fair values except for certain
restructured loans and advances. Domestic interest/mark-up based financial assets and financial liabilities
carry interest/mark-up rates ranging as follows:
Financial Assets Rate
Balances with other banks 2% - 6%
Investments 8% - 15%
Repurchase agreements 12.6% - 45%
Resell agreements 7.2% - 15.8%
Advances 2% - 18%
Net investment in finance lease 17% - 27%
Financial Liabilities
Deposits & other accounts 4% - 8%
Borrowings from other banks, agents etc. 8% - 10%
29. CONCENTRATION OF CREDIT RISK
Out of the total financial assets of Rs. 293,320.708 million the financial assets which were subject to
credit risk amounted to Rs. 288,359.634 million. The bank's major credit risk is concentrated in the tex-
tile sector. To manage credit risk the bank applies credit limits to its customers and obtains adequate
collaterals. Following financial assets are guaranteed by the Federal/Overseas governments or State
Bank of Pakistan / other central banks:
Guaranteed by the Government of Pakistan
- Investments 62,373,101
- Loans and advances 23,965,956
- Mark-up receivable on government guaranteed financial assets 3,173,917
------------------
89,512,974
Guaranteed by Overseas Governments 4,634,575
Financial assets receivable from the State Bank of Pakistan 2,441,637
Financial assets receivable from other central banks 5,866,943
------------------
102,456,129
==========
29.1 Risk Management
The bank is primarily subject to interest rate, credit and currency risks. The policies and proce-
dures for managing these risks are outlined in notes 29.1.1 to 29.1.3. The bank has designed and
implemented a framework of controls to identify monitor and manage these risks which are as
follows:
29.1.1 Interest rate risk management
Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in
market interest rates. The bank is mainly exposed to interest rate risk on its deposit liabilities and
its leans and advances and investments portfolio. The Asset Liability Committee of the bank
reviews the portfolio of the bank on a regular basis to ensure that this risk is managed within
acceptable limits.
A high proportion of the loans and advances portfolio of the bank comprises of working capital
finances which are re-priced on a three monthly basis.
The bank's interest rate risk is limited since the majority of customers deposits are retrospectively
re-priced on a six monthly basis on the profit and loss sharing principles.
29.1.2 Credit risk management
Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and
cause the other party to incur a financial loss. The bank has an established credit policy depart-
ment responsible for formulating policies for extending and monitoring of credit in line with the
management's risk acceptance methodology. The department has formally issued these credit
policies through Credit Policy Manual. The credit risk is maintained, reviewed and analysed by
appropriate officials in line with the guidelines contained in this manual. This risk is managed
through counterparty and credit limits and by obtaining adequate collaterals. Loans and advances
to financial institutions are granted in accordance with the limits assigned to each institutions.
Cross border risk is mitigated by employing exposure limits computed with reference to the coun-
try / sovereign risk associated with such transactions and are updated on a regular basis.
The bank has also established an Asset Remedial Division (ARM) to focus on expediting recover-
ies from all problem credits. This division negotiates with these borrowers and recommends all
restructuring and rescheduling of stuck-up loans to the senior management. In case of willful
default the division coordinates with the legal division for commencing legal proceeding against
these borrowers
29.1.3 Currency risk management
Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign
exchange rates. The management of the bank manages this risk by setting dealer, currency and coun-
terparty limits and monitors the bank's exposure in this regard at all times.
For this purpose, the bank enters into ready, spot, forward and swap transactions in the inter bank mar-
ket and with the State Bank of Pakistan in order to hedge its assets and liabilities and cover its foreign
exchange position.
The exposure of the bank to currency risk is also restricted by the statutory limits on trade nostros and
aggregate exposure enforced by the State Bank of Pakistan.
The bank has also established dealing centres at certain strategic business centres and offshore bank-
ing units which operate in accordance with the strategies communicated by the Treasury Division. The
currency risk at these locations is managed in accordance with the instructions of the Treasury Division
which monitors the bank's exposure to currency risk on a global basis.
30. SEGMENT ANALYSIS
30.1 Geographic segment
Profit/(loss) Total assets Net Bills for Endorsements
before employed net of assets collection and other
taxation inter branch employed obligations
accounts
(Rupees in '000)
Pakistan 1,753,487 248,589,672 6,419,687 47,500,381 30,736,620
Asia Pacific
(including South Asia) 539,065 17,975,318 929,278 1,726,836 1,758,095
Europe (241,462) 15,051,418 845,698 587,930 1,521,442
United States of America
and Canada 77,680 3,895,400 138,699 523,724 151,908
Middle East (1,229,059) 29,637,998 3,450,949 4,763,558 4,074,429
Africa 174,824 5,776,952 750,125 261,814 434,033
------------------ ------------------ ------------------ ------------------ ------------------
1,074,525 320,926,758 12,534,436 55,364,241 58,676,527
========== ========== ========== ========== ==========
From the current year the management has decided to recognise the investment of the bank in its sub-
sidiaries and joint ventures using the equity method of accounting. Accordingly, intragroup items are not
included in the amounts reported above.
30.2 Segment by class of business
LOANS AND ADVANCES
30.2.1 Overseas Domestic Total Percentage
(Rupees '000)
Public/Government 2,386,453 30,898,737 33,285,190 19.15%
Chemicals and Pharmaceuticals 148,619 6,074,796 6,223,415 3.58%
Agribusiness 173,611 2,584,587 2,757,998 1.59%
Textile 3,660,545 37,235,973 40,896,518 23.53%
Cement 253,907 475,290 729,197 0.42%
Sugar 39,708 4,025,109 4,064,817 2.34%
Shoes and leather garments 107,939 1,321,899 1,429,838 0.82%
Automobile and transportation equipment 157,328 1,351,605 1,508,933 0.87%
Financial 1,770,927 490,142 2,261,059 1.30%
Transportation 97,464 4,581,576 4,479,040 2.58%
Electronics & Electrical Appliances 295,748 480,437 756,185 0.44%
Production & transmission of energy 1,080,181 5,139,059 6,219,250 3.58%
Food, Tobacco & Beverages 564,391 -- 564,391 0.32%
Insurance -- 44,558 44,558 0.03%
Metals & Allied 67,416 -- 67,416 0.04%
General Traders 6,233,589 -- 6,233,589 3.59%
Others (including individuals) 8,257,067 54,044,434 62,301,501 35.82%
------------------ ------------------ ------------------ ------------------
Total 25,294,893 148,528,012 173,822,905 100.00%
========== ========== ========== ==========
30.2.2 DEPOSITS
Overseas Domestic Total Percentage
(Rupees '000)
Public / Government 2,790,102 30,685,905 33,476,007 12.60%
Chemicals and Pharmaceuticals 287,402 4,572,654 4,860,056 1.83%
Agribusiness 13,119 9,374,986 9,388,105 3.53%
Textile 198,725 2,483,805 2,660,530 1.00%
Cement 678 83,519 84,197 0.03%
Sugar 296,600 689,030 985,630 0.37%
Shoes and leather garments 34,986 438,474 473,460 0.18%
Automobile and transportation equipment 238,096 939,587 1,177,683 0.44%
Financial 1,150,353 271,436 1,421,789 0.54%
Transportation 59,002 1,106,624 1,165,626 0.44%
Electronics & Electrical Appliances 50,484 751,668 802,152 0.30%
Production & transmission of energy 14,611 7,245,256 7,259,867 2.73%
Food, Tobacco & Beverages 520,282 -- 520,282 0.20%
Insurance -- 8,602,437 8,602,437 3.24%
Meals & Allied 2,148,703 -- 2,148,703 0.81%
General Traders 3,989,920 -- 3,989,920 1.50%
Others (including individuals) 45,163,255 141,571,625 186,734,880 70.26%
------------------ ------------------ ------------------ ------------------
56,954,318 208,797,006 265,751,324 100.00%
========== ========== ========== ==========
30.3 Segment by sector
Loans and Advances Deposits
(Rupees '000) Percentage (Rupees '000) Percentage
Public/Government 33,285,190 19.15% 33,476,007 12.60%
Private 140,537,715 80.85% 232,275,317 87.40%
------------------ ------------------ ------------------ ------------------
173,822,905 100.00% 265,751,324 100.00%
========== ========== ========== ==========
31. CURRENCY BREAKDOWN OF ASSETS AND LIABILITIES
Assets Liabilities
(Rupees (Rupees
'000) Percentage '000) Percentage
Pak rupees 240,271,578 74.87% 216,288,378 70.13%
U.S dollars 32,144,600 10.02% 42,061,455 13.64%
Pound sterling 12,160,675 3.79% 15,279,291 4.95%
Deutsche mark 184,596 0.06% 443,521 0.14%
Japanese yen 90,180 0.03% 12,579 0.00%
Euro 1,022,251 0.32% 836,248 0.27%
Other European currencies      1,640,150 0.51% 1,534,823 0.50%
Other currencies 33,412,728 10.41% 31,936,027 10.37%
------------------ ------------------ ------------------ ------------------
320,926,758 100.00% 308,392,322 100.00%
========== ========== ========== ==========
The foreign currency gaps are covered by forward exchange contracts with State Bank of Pakistan or in
the inter-bank market and do not represent the foreign exchange exposure of the bank.
2000 1999
(Rupees '000)
32. TRANSACTIONS WITH ASSOCIATED UNDERTAKINGS
i) Loans and advances given during the year 3,307 69,660
ii) Advances repaid during the year 53,309 19,658
iii) Deposits (at year end) 2,953,760 1,265,499
iv) Mark up / Interest expensed 40,411 64,975
v) Mark up / Interest earned 26,621 38,801
vi) Dividend income 170,669 42,845
vii) Management fee 5,017 --
33. EARNINGS PER SHARE
Profit / (Loss) after taxation attributable to
ordinary shareholders 609,525 (8,874,165)
========== ==========
Weighted average number of shares outstanding
during the year 1,217,849,500 1,217,849,500
(Rupees)
Earnings per share 0.50 (7.29)
The amount of Rs. 8 billion received as advance against future issue of right shares has not been included
in the above calculation as shares against this amount have not been issued by the bank so far.
2000 1999
34. NUMBER OF EMPLOYEES
Number of employees at December 31 22,758 23,033
35. General
35.1 The corresponding figures have been re-arranged and re-classified for comparison, wherever necessary.
35.2 Figures have been rounded off to the nearest thousand rupees.
Zakir Mahmood Dr. Shamsh Kassim Lakha
PRESIDENT/CHIEF EXECUTIVE OFFICER DIRECTOR
Ebrahim Sidat Mohsin Aziz
DIRECTOR DIRECTOR
BOARD OF DIRECTORS OF HABIB BANK LIMITED
ZAKIR MAHMOOD DR. SHAMSH KASSIM LAKHA EBRAHIM SIDAT
PRESIDENT/ DIRECTOR DIRECTOR
CHIEF EXECUTIVE OFFICER
M. RIYAZUL HAQUE MOHSIN AZIZ SAJID ZAHID
DIRECTOR DIRECTOR DIRECTOR
ANNEXURE TO THE ACCOUNTS
AMOUNT WRITTEN OFF DURING THE YEAR 2000
In terms of sub-sections (3) of Section (12) of Banks' (Nationalization) Act, 1974 the details of
individual cases where aggregate amount of Loans/Advances/Financing facilities/Mark-up or
other dues written off and other financial reliefs provided through rescheduling or restructuring
of Rs. 0.5 million or more during the year ended 31 December 2000 are as follows:
SR. NAME AND ADDRESS NAME OF INDIVIDUALS/ FATHER'S NAME OUTSTANDING AMOUNT INTEREST/MARK-UP TOTAL
No. OF THE BORROWER PARTNERS/DIRECTORS LIAB. ON WRITTEN- WAIVED AND OTHER (6+7)
(with NIC Number) OPENING DAY OFF FINANCIAL RELIEF
OF THE YEAR PROVIDED
AS ON
01-01-2000
1 2 3 4 5 6 7 8
1. Relief Provided under court decree cases
1. Muhammad Younis Lakhani Individual 2894444.31 163691.47 (Waiver) 360506.59 524198.06
F-59, Block-5, Park Lane Clifton Karachi. (Reversal) .00
2. Tahir Enterprises Tahir Hameed Abdul Hameed 626677.00 .00 (Waiver) 1150382.00 1150382.00
191-A, Ahmed Block New Gardentown Lahore (Reversal) .00
3. Abigail Garments Pvt Ltd. Amer Hasan Syed Hussain 460681.96 .00 (Waiver) 628000.00 628000.00
11-A-9th Central St. DHA Phase II, Karachi 514-59-004462 (Reversal) .00
Mrs. Ayesha Agha Agha Khurshid Ahmed
514-93-122166
4. Abigail Garments Pvt Ltd. Amer Hasan Syed Hussain 1406622.34 7304.30 (Waiver) 1241976.00 1249280.30
11-A, 9th Central St. DHA Ph-2 Karachi 514-59-004462 (Reversal) .00
Mrs. Ayesha Agha Agha Khurshid Ahmed
514-93-122116
5. Fahad Garments M. Nazir Bawani Ahmed Bawani 740356.00 .00 (Waiver) 370300.00 575987.00
Shop No. 2-21 Al Tehim Shopping Centre Hyderabad 449-55-017689 (Reversal) 205687.00
2. Relief Provided under various scheme
6. Waqar Azeem Waqar Azeem Ch. Khuda Dad 796173.00 252342.00 (Waiver) 396186.00 648528.00
32-A, Peoples Colony Faisalabad 328-89-390753 (Reversal) .00
7. Faisal Trading S.A. Mukarram 363735.90 .00 (Waiver) 738014.10 738014.10
1-E, 5/1, Nazimabad Karachi (Reversal) .00
8. Mehran Medical Complex Pvt Ltd. Atif Hafeez Dr. Hafeez-ur-Rehman 155200.00 .00 (Waiver) 2558000.00 2558000.00
157 Malir Halt Karachi 520-85-400113 (Reversal) .00
Dr. Muhammad Akram Khan Ch. Ata Illahi
517-42-226897
M.A. Hafeez Ch. Imam-Uddin
52-46-400111
9. Faraz Traders Mukhtar Ahmed Fayyaz Khan 160567.89 .00 (Waiver) 745111.00 745111.00
H. No. B/19 878 Chandani Rehmanlane 450-29-013021 (Reversal) .00
Shahi Bazar Hyderabad
10. Abdul Razzak A. Razzak Faqir Muhammad 912845.00 .00 (Waiver) 589113.00 589113.00
H. No. 03/25, Chakiwara Lyari Karachi 507-86-199476 (Reversal)
11. Khalid Maqsood Khalid Maqsood Haji Ch. M. Nazeer 1303112.00 171043.00 (Waiver) 383456.00 606965.00
Jahangri Road No. 4, Mouzagunj Mughalpura Lahore 269-49-309831 (Reversal) 52466.00
12. Najeebullah Khan Niazi Najeebullah Khan Niazi Hameedullah Khan Niazi 317250.00 .00 (Waiver) 942392.00 942392.00
A-16 35 H. No. 107 Usmanabad Karachi 507-91-063085 (Reversal) .00
13. Khushi Mohammad & Sons Khushi Mohammad Fazal Din 168641.00 11551.00 (Waiver) 618184.00 729735.00
Timber Market Narang Mandi Tehperoze Abdul Ghafoor Khushi Mohammad (Reversal) .00
Wala Distt. Sheikhupura
14. Tariq Brothers Tariq Shafique Mohammad Sharif 3502388.00 180316.00 (Waiver) 1864800.00 2733746.00
Sheikhupura Road Gujranwala 225-54-05660 (Reversal) 688630.00
15. Mohammad Yousuf Mohammad Yousuf Ameer Ahmed 963124.00 .00 (Waiver) 526019.00 526019.00
2/183 Liaquatabad Karachi 360-92-418432 (Reversal) .00
16. Zazi Khan Zazi Khan M. Siddique Khan 785249.00 74098.00 (Waiver) 428077.00 502175.00
H. No. 132/33 Amani Shah Colony Unit-12, 450-55-193121 (Reversal) .00
Latifabad Hyderabad
17. S. Salahuddin & Bros. Syed Hazarat Ali 475136.00 .00 (Waiver) 3498822.00 3498822.00
Jinnah Road Quetta Syed Liaquat Ali (Reversal) .00
18. Khan Associates Jawaid Khan A. Karim Khan 3306829.96 .00 (Waiver) 4858000.00 5990909.96
231 Rex Chamber Abdullah Haroon Road Karachi Mrs. Safia Khan M./O.A. Karim Khan (Reversal) 1132909.96
19. Malik Mohammad Bashir Malik Mohammad Bashir Malik Bahadur Khan 1354195.93 133521.93 (Waiver) .00 616895.93
777-B-Q Block Model Town Lahore 233-57-483383 (Reversal)
20. Ravi Agri. & Dairy Pro. Ltd Ch. Mohammad Akram 340292.00 .00 (Waiver) 778207.00 778207.00
Akram Complex Model Town Linkroad Lahore (Reversal) .00
Akbar Ali Alvi
Sh. Mohammad Saleem
Ch. Amjad Mustafa
Muzammil Khan
Sh. Mohammad Nasim
Kaleem Haider Zadi
Abdullah Khan
21. Muhammad Younus Baloch Muhammad Younus Baloch 231350.00 .00 (Waiver) 550244.00 550244.00
H. No. 4th Fl. Dur Mohammad 507-89-076660 (Reversal) .00
Manzil Chakiwara Lyari Karachi
22. Fazal Poultry Farm Ch. Ghulam Rasool Ch. Fazal Din 1127324.00 196483.58 (Waiver) 1295435.00 1696780.00
Adda Chabel Wahgah G.T. Road Lahore (Reversal) 204861.42
23. Quetta Auto Store Bashir Ahmed 1249347.23 .00 (Waiver) 1696920.23 1813846.46
Melan Street Plaza Square M.A. Jinnah Road Karachi (Reversal) 116926.23
24. Eastern Impex Tahir Abbas (Prop) 1162279.00 169104.00 (Waiver) .00 545279.00
Pasrup Road Sialkot (Reversal) 376175.00
25. Tahir Industries Haji Mazhar Hussain Haji Nazar Mohammad 5139920.00 1548120.00 (Waiver) 3044750.76 4592870.76
Station Road Ranipur Zahid Shoukat Haji Mazhar Hussain (Reversal)
Qaiser Saleem Haji Mazhar Hussain
Nasir Saleem Haji Mazhar Hussain
26. Tahir Industries Zahid Shoukat H. Mazhar Hussain 658591.00 658591.00 (Waiver) .00 658591.00
Station Road Ranipur Qaiser Saleem H. Mazhar Hussain (Reversal) .00
Nasir Saleem H. Mazhar Hussain
27. Mohammad Khan Mohammad Khan 3766992.00 .00 (Waiver) 680385.00 680385.00
H. No. 103 Servey-87 Goldentown Malir Karachi 507-92-188734 (Reversal) .00
28. Aslam Khan Aslam Khan Ahmed Khan 511639.00 149903.00 (Waiver) 535989.00 817932.00
C/0 Barki P.O.A. Rehman Halyar Tando 455-50-098479 (Reversal) 132040.00
Mohammad Khan Dist. Hyd.
29 Zaman Khan Zaman Khan Zahidallah Khan 605769.00 221076.00 (Waiver) 298347.00 646716.00
5-B-1/29, Paposh Nagar Karachi 516-56-255406 (Reversal) 127293.00
30 Saeed Iqbal Seeed Iqbal Ch. Abdul Rahim 861133.00 0.00 (Waiver) 550041.00 550041.00
A-151 Lala Mosa Colony Maripur Road Karachi 333-93-096659 (Reversal) 0.00
31 Hafizullah Khan Hafizullah Khan Alam Khan 470306.00 0.00 (Waiver) 691847.00 691847.00
Jameela Street Moosa Khan 507-86-175566 (Reversal) 0.00
Compound Old Haji Camp Karachi
32 S.Z. Steel Re Rolling Mills Malik Imtiaz Khaliq 1649900.86 261889.00 (Waiver) 1981243.00 2264870.00
Bund Road Shadi Pura Lahore (Reversal) 21738.00
33 Asghar Brothers Mohammad Afzal Asghar Khan 6220473.00 0.00 (Waiver) 969439.00 2889926.00
Marble Slaber Ships Processorwestsigge 211-32-042071 (Reversal) 1920487.00
Industrial Colony Rawalpindi Mohammad Akbar Mohamamd Afzal
211-66042073
Mohammad Asghar Mohammad Afzal
211-66-042074
Mst. Zubaida Begum W/o Mohammad Afzal
211-36-042072
34 Antepara Hotel & Restaurant Agha Riaz UI Islam Nooruddin 3476962.51 0.00 (Waiver) 1025000.00 1289625.51
Liaqat Road Rawalpindi (Reversal) 264625.51
35 Sheheryar Enterprises Asghar Ali Sheikh 546770.62 100577.62 (Waiver) 889816.00 1112093.62
67 Beadon Road Lahore Mrs. Salma Ali W/o Sh. Mohammad Ali (Reversal) 121700.00
Shahid Hussain Sh Talib Hussain
36 Ayub-ur-Rehman Ayub-ur-Rehman Fazal Mohammad Rana 1603565.00 0.00 (Waiver) 972727.00 972727.00
517-A, Ghulam Mohammadabad Faisalabad (Reversal) 0.00
37 Nasim Cotton & Oil Mills Ch. Arshad Javaid 854775.96 107022.00 (Waiver) 1525580.65 1632602.65
C./O Pattoki Distt Branch Pattoki Jamshad Asghar (Reversal) 0.00
Nasreen Akhtar
M. Iqbal
Nasreen Irfan
Jawaid Iqbal
38 Vanila Impex Abdul Sattar Abdullah 4063337.00 0.00 (Waiver) 5009232.21 6436232.21
28-F, 1st Floor PECHS Karachi (Reversal)  1427000.00
3 Relief Provided under winding up proceeding
39 Standard Co. Op. Bank Ltd. 22349004.54 21969004.54 (Waiver) 0.00 21969004.54
Head Office Mohamadi House Karachi (Reversal) 0.00
40 Western Travel Pvt Ltd. Faizullah Khan 3049329.98 172769.98 (Waiver) 2018000.00 2508964.98
G-5 Ground Floor Court Viewbldg, Karachi Mst. Anis Khatoon (Reversal) 318195.00
Mst. Farzana Khan W/o Waheedullah Khan
Adnan Waheed
Mrs. Omaina Waheed
Mst. Farhana Waheed
41. Kohistan Printing Press Mumtaz Bokhari 273000.00 76000.00 (Waiver) 475000.00 625000.00
Jinnah Road Quetta (Reversal) 74000.00
42 G.P. Enterprises Late Mst. Parveen A. Mohammad Abul Mohamad 3564000.00 927000.00 (Waiver) 1590000.00 4454000.00
4-Gilani Market Marriot Road Karachi (Reversal) 1937000.00
43 Standard Print. Press (P) Ltd. Ashfaq Zaie 500000.00 0.00 (Waiver) 1922000.00 1922000.00
Zak Manzil Demellon Road Karachi Akhtar Zaie (Reversal) 0.00
Usman Zaie
44 Haji Muheen Khan Haji Muheen Khan Haji Khuda Nazar 528698.30 0.00 (Waiver) 730865.00 730865.00
R./O Village Gramkan Tehs. Distt. Panjgur (Reversal) 0.00
45 Mohsin Manzoor Mohsin Manzoor 1379000.00 443000.00 (Waiver) 723000.00 1166000.00
35-B, North Circular Avenue Phase I, DHA Karachi (Reversal) 0.00
46 Mahmood Brothers Mehmood Sadiq 5242000.00 0.00 (Waiver) 1205000.00 3644000.00
59-Sector 7/A, Korangi Inds. Area Karachi Ahmed Sadiq (Reversal) 2439000.00
517-85-048006
47 Printing Impression Mrs. Arifa Karim W/o Fazal Karim Khalil 5975064.93 352413.53 (Waiver) 3475275.44 4451111.49
D-130 Comm. Area B, Tobba 505-53-090837 (Reversal) 623422.52
Masjid DHA Phase-II, Karachi F. Karim Khalil Late Fazal Khalil
506-44-090836
48. Ghulam Qadir Khan (Deceased) Ghulam Qadir Khan Mohammad Akram Khan 1841620.00 641620.00 (Waiver) 1327000.00 1968620.00
Viii. Narshaibadad Serainaurang Distt Lakki Marwat 156-09-098711 (Reversal) .00
49 Student Loan (399 Accounts) 822225.90 40515.96 (Waiver) 0.00 815515.96
C./O HBL, Jamrood BR. Peshawar (Reversal) 775000.00
50. Rice Milling Corp. of Pakistan 3624638.00 3055200.00 (Waiver) .00 3624638.00
White House Bld. Shadman Market Lahore (Reversal) 569438.00
51. Ali Bux Iqbal Catering Service Haji Ali Bux Nauthu Khan 566500.00 .00 (Waiver) 548976.00 548976.00
1616-162 Comm. Area Liaquatabad Karachi 501-91-607240 (Reversal) .00
52. Ahsan Sons Bel. Inds. (P)Ltd Naeem Ahsan 4874751.00 324751.00 (Waiver) 5076504.00 5651255.00
20 Badar Centre Railway Road Lahore Javed Iqbal (Reversal) 250000.00
Asif Ahsan
Shfaqat Ahsan
Amar Ahsan
53. Pakistan Weaving (Pvt) Ltd. Muhammad Yamin 7403054.00 1803054.00 (Waiver) 1303000.00 3106054.00
F-482 SITE Karachi 517-33-376401 (Reversal) 0.00
Muhammad Saad
517-85-392061
Azizullah Siddique
502-033-09062
Abdul Aleem Khan
601-27-194578
Rafiq Ahmed Siddiqui
502-33-015236
54. Sana Creation Capt. Tariq Ijaz 702000.00 0.00 (Waiver) 713496.00 713496.00
D-75 Block-8, Gulshan-e-Iqbal Karachi (Reversal) 0.00
55. Choudry Textile Mills Ltd Ch. Muhammad Ilyas 35599131.00 3027050.74 (Waiver) 713496.00 713496.00
Regal Cenema Building 65 Ch. Muhammad Ashiq (Reversal) .00
Shahrah-e-Quaid-e-Azam Lahore Ch. Muhammad Younus
Ch. Muhammad Nawaz
Mian Muhammad Amjad
Mst. Zubaida Khatoon
Sh. Muhammad Rashid
Mrs. Naseem Ilyas
Mrs. Naseem Amjad
56 Jibran Faran Medical Store Munawar Khan (Prop) Shoukat Khan 493426.00 148426.00 (Waiver) 372059.00 520485.00
Main Bazar Latifabad No. 2 Hyderabad 450-91-004954 (Reversal) .00
57 Zahoor Cotton Mills Ltd. Javaid Zahoor 230253993.94 728046.94 (Waiver) 87230324.00 112484317.94
65-C-1, Gulberg III, Lahore Mrs. Mukamila Javaid (Reversal) 24525947.00
Arif Zahoor
Mohsin Zahoor
Mrs. Speherara Zahoor
Mrs. Sabiha Zahoor
Mrs. Rubina Zahoor
58 Prime Plastic Industries Khawar Qader 1300000.00 0.00 (Waiver) 69901425 69901425
313-D. Faisal Town Lahore (Reversal) 0.00
59 Prince Baby Cycle Ghulam Mohiuddin 1310239.00 0.00 (Waiver) 754252.00 754252.00
Kutchery Bazar Faisalabad 246-29-033070 (Reversal) .00
15-Z Madina Town Faisalabad
60 Student Loan (154 Accounts) 191631.00 94106.00 (Waiver) 581280.00 675386.00
C./O HBL Sindh Agriculture University Tando Jam Distt. Hyd (Reversal) .00
61 City Automobiles Jaffar Kazim Kazim Raza 38409000.00 10357000.00 (Waiver) 12967000.00 31376000.00
D-135 Block 5 F. B. Area Karachi 501-54-075805 (Reversal) 8052000.00
Hassan Kazim Kazim Raza
501-53-072804
62 Ali Silk Mills Ali Muhammad Khan 3631788.00 172216.69 (Waiver) 695344.69 1282171.69
Vill & P.O. Totakan Malakand Agency 117-57-297243 (Reversal) 414610.31
63 Imran Khalid & Assoc. Pvt Ltd. Khalid Masood Niazi 3065627.00 241344.00 (Waiver) 1343179.00 2556806.00
85-R, Phase III, LCCHS Lahore Cantt. Imrana Khalid (Reversal) 972283.00
Masood Niazi
64 Ehsan Paper Board Mills Ltd. Naeem Ehsan Khilji 13196685.88 2304455.88 (Waiver) 3565410.00 5941595.88
G T. Road Rathian, Jhelam 220-85-583479 (Reversal) 71730.00
Ehsan-ul-Haq
220-88-583477
Ikram-ul-Haq
220-85-605238
Muhammad Islam
220-88-528681
65 United Cotton G&P Factory Syed Jawed Hassan 8821000.00 .00 (Waiver) 5582000.00 7890000.00
KLP Road Saujapur Tehsil Sadiqabad Syed Mohammad Nawab (Reversal) 2308000.00
Syed Shah Nawaz
Syed Abdul Hassan
Syed Haider Hassan
Syed Ahmed Hassan
Syed Salman Hassan
66 Abdul Rashid Latif Individual 445672.00 117232.00 (Waiver) 402805.00 520037.00
E-34 Block-F, North Nazimabad Karachi (Reversal) .00
67 Niaz Bahadur Individual 676900.00 353500.00 (Waiver) 394741.00 748241.00
B-52 Block No. 4, Metrovile Site Area Karachi (Reversal) .00
68 Zahid Usman Zahid Usman Bashir Ahmed 287630.00 287630.00 (Waiver) 254000.00 541630.00
Head Baloki Road More Khudateh, Nankana Sahib (Reversal) .00
69 Care Knitwear Pvt Ltd. Omar Ashfaq Mian Mohammad Ashfaq 11366223.29 4516223.29 (Waiver) 4444896.00 8961119.29
Care House Nadirabad Mainbaidian Road Lahore Cantt. 277-89-374692 (Reversal) .00
Asad Ashfaq Mian Mohammad Ashfaq
277-65-343726
Air CDRE RTD M. Ashfaq Mian Mian Abdul Majeed
277-25-343724
70 Al Barka Fabrics Ltd. Sh. Mohammad Aslam 1691834.00 81320.00 (Waiver) 2947006.00 3028326.00
I KM Jaranwala Road Khurrianwala Faisalabad Mrs. Rifat Aslam (Reversal) .00
Sh. Inayat Mohammad
Shafqat Hussain
Maqsood Ahmed
Arshad Ali
Hamida Begum
Wazir Almas
Mussarat Naheed
Samina Maqood
71 Karim Silk Mills Ltd. Haji M. H A. Karim 51031000.00 9572000.00 (Waiver) 66409000.00 10808600.00
C J30 SITE Karachi Mohammad Hanif Haji Ahmed (Reversal) 32105000.00
Idrees Ibrahim Ibrahim Karim
451-57-184654
Haji Noor M.H.A. Karim
Abdul Wahab H. Mohammad
Mohammad Arif Abdul Ghani
72 Karim cotton Mills Ltd. Haji Mohammad H.A. Karim 254483000.00 23051000.00 (Waiver) 227376000.00 435213000.00
A-6(A) SITE Kotri Distt Dadu Sindh Haji Ahmed H.A. Karim (Reversal) 184786000.00
Mohammad Idrees
Rafiq Haji Noor Mohammad
Ayub Haroon
Mohammad Amin H. Omar
Mohammad Hanif Haji
Abdul Wahab Haji Mohammad
73 Sohail Khan Individual 456772.00 141772.00 (Waiver) 429049.00 570821.00
H. No F-8/1 -A, PKT Colony Gizri Road Karachi 510-92-188409 (Reversal) .00
74 Sind Particle Board A. Razzak Fazil 2984672.85 0.00 (Waiver) 522801.94 522801.94
4th Floor Bank House No. 2, Habib Khalid Iqbal Ghani (Reversal) .00
Square M. A. Jinnah Road Karachi Hafizuddin
Siddiq Wali M Arabi
Mrs. Roshan Ara M Amin
Mrs. Shahida Yaqoob Dayala
Mrs. Ayesha K Ebrahim
75 Azeem Estate Developers Hafiz G. Mohiuddin Butt 1010199.95 0.00 (Waiver) 1013800.00 1013800.00
91-Jail Road Lahore Mrs. Yasmin Butt (Reversal) 0.00
Mrs. Talat Ehsan
76 Zenith Elevators (Pvt) Ltd. Syed Shah A. Moeed 1016000.00 0.00 (Waiver) 500000.00 500000.00
1-C, 36th Tauheed Commercial Min. Riffat Jabeen (Reversal) 0.00
Street PH V, DHA Karachi Mrs. Sabra Moeed
77 Akber Liaquat Ali Khan Akber Liaquat Ali Khan Quaid-e-Millat Liaqat Ali Khan 3401000.00 0.00 (Waiver) 2800000.00 3383000.00
Flat No. 8-C, Street No 2, 510-41-016238 (Reversal) 583000.00
Bath Island Clifton Karachi
78 Ali Ahmed Jan Ali Ahmed Jan Shah Jehan 1055851.94 239447.94 (Waiver) 510000.00 749447.94
C-30 Block-3, Metrovile Karachi 599-88-129041 (Reversal) .00
79 Huzur Bux M. Hayat & Co. Mohammad Younas 1030000.00 0.00 (Waiver) 617000.00 617000.00
160/2 North Napier Road Karachi Mrs. Fahmida (Reversal) 0.00
80 Precision Technometal Ind. Ltd. Anik A. Jivanjee 4350000.00 0.00 (Waiver) 1521000.00 1521000.00
Block-C, Street 12. Shershah Karachi (Reversal) 0.00
81 Abbas Enterprises Ghulam Abbas (Late) 3011000.00 2411000.00 (Waiver) 4858000.00 7269000.00
Rawalpindi Wala Building (Reversal)
M.A. Jinnah Rood Karachi
82 S. A. Traders Saleem Akhtar (Prop) Mohammad Bashir 341034.00 53942.00 (Waiver) 488078.00 542020.00
Millar Street Murad Nagar 285-54-057742 (Reversal) 0.00
Shaheenabad G. T. Road Gujranwala
83 Mohammad Arshad Mohammad Arshad Mohammad Munawar Qureshi 1040373.00 537373.00 (Waiver) 181924.00 719297.00
H No. 9, ST. No 9, Shama Road 272-90-095611 (Reversal) .00
New Muzang Lahore
84 Wali Cattle Farm Hidayatullah W/O. Hidayatullah 3132894.00 0.00 (Waiver) 764165.00 2597059.00
1005 Uni Tower I.I. Chundrigar Road Karachi Mrs. Khurshid (Reversal) 1832894.00
85 Mrs. Almas Pirzada Mrs. Almas Pirzada W/O Mujeeb Pirzada 5150639.00 150639.00 (Waiver) 3440998.00 3591637.00
79/2 29th Street Phase IV DHA Karachi. 409-51-161947 (Reversal) .00
TOTAL:- 800170860.97 92797688.39 507284754.86 874567956.20
274485512.95
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