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| Bolan
Bank Limited |
|
| Annual
Report 1996 |
|
|
| CONTENTS |
|
| Corporate
information |
|
1 |
|
| Notice
of Annual General Meeting |
2 |
|
| Chairman's
Review |
|
|
3 |
|
| Auditors'
Report |
|
|
5 |
|
| Balance
Sheet |
|
|
6 |
|
| Profit
and Loss Account |
|
10 |
|
| Cash
Flow Statement |
|
12 |
|
| Notes
to the Accounts |
|
14 |
|
| Pattern
of Shareholdings |
|
19 |
|
| Offices
/ Branch Network |
|
20 |
|
|
| CORPORATE
INFORMATION |
|
|
|
| BOARD
OF DIRECTORS |
|
| Mr.
Javed Yunus |
|
| Chairman |
|
|
|
| Mr.
Mirza Ghulam Mustafa |
|
| Vice
Chairman |
|
|
|
| Mr.
Pervez Yunus |
|
| Mr.
Naved Yunus |
|
| Mr.
Maheen Yunus |
|
| Mrs.
R. J. Yunus |
|
| Mrs.
S. P. Yunus |
|
| Mrs.
Ambreen Naved Yunus |
|
| Mrs.
Najmus Sehar Mustafa |
|
| Mr.
Mirza Ghulam Mujtaba |
|
| Mr.
Syed Ijaz Hussain Shah |
|
| Mr.
Ziaul Hasan Laj |
|
| Mr.
A. K. M. Sayeed (NIT Nominee) |
|
|
|
| SECRETARY |
|
| Mr.
Shabbir Ali Kanchwala |
|
|
|
| MANAGEMENT |
|
| Mr.
Syed Ijaz Hussain Shah |
|
| President
& Chief Executive |
|
|
| Mr.
Ziaul Hasan Laj |
|
| Managing
Director |
|
|
| AUDITORS |
|
| Taseer
Hadi Khalid & Co. |
|
| Chattered
Accountants |
|
|
| Taher
Moochhala & Co. |
|
| Chartered
Accountants |
|
|
| SHARE
REGISTRARS |
|
| Bema
Associates (Private) Limited |
|
| 515,
Qamar House, |
|
| M.A.
Jinnah Road, Karachi. |
|
|
| NOTICE
OF ANNUAL GENERAL MEETING |
|
| Notice
is hereby given that the Fifth Annual General Meeting of Bolan Bank Limited
will be held on |
|
| Saturday
29th March 1997 at 11.30 A.M. at Head Office, 92-5 I4/A, Madresa Road,
Cantonment, Quetta |
|
| to
transact the following business: |
|
|
| 1.
To confirm the minutes of the Fourth Annual General Meeting of the Bank held
on 30th March, 1996. |
|
|
| 2.
To receive, consider and adopt the Audited Accounts for the year ended 31st
December, 1996alongwith |
|
| Chairman's
Review and Auditors' report thereon. |
|
|
| 3.
To appoint Auditors and fix their remuneration. |
|
|
| 4.
To transact any other business with the permission of Chair. |
|
|
| By
Order of the Board |
|
| Shabbir
Ali Kanchwala |
|
| Secretary |
|
|
| NOTES |
|
| 1.
The share transfer books of the Bank will remain closed from 29th March, 1997
to 5th April, 1997 |
|
| (both
days inclusive). |
|
|
| 2.
A member entitled to attend and vote at this meeting shall be entitled to
appoint another member, as |
|
| proxy. Proxies, in order to be effective,
must be received at the Registered Office of the Bank not later |
|
| than 48 hours before the meeting and must
be duly stamped, signed and witnessed. |
|
|
| 3.
Shareholders are requested to promptly notify the Company of any change in
their addresses. |
|
|
| CHAIRMAN'S
REVIEW |
|
|
| It
gives me great pleasure to present to you the 5th Annual Report of Bolan Bank
Limited for year ended |
|
| 31
December, 1996. |
|
|
| Bolan
Bank Limited has continued to make satisfactory progress on sound footing in
all areas of its opera- |
|
| tions
inspite of the sluggish economic conditions in the country during the year
1996. Following table gives |
|
| comparative
figures and percentage of increase in 1996 over the preceding year:- |
|
|
|
1996 |
1995 |
Increase |
|
|
|
Rs. in |
Rs. in |
Amount |
'(%) |
|
|
'(000) |
'(000) |
|
|
|
|
|
| 1) |
Deposits |
|
3,445.10 |
2,394.06 |
1,051.04 |
44 |
|
|
|
|
|
| 2) |
Advances |
|
1,974.34 |
1,105.20 |
869.17 |
79 |
|
| 3) |
Pre-Tax Profit |
|
88.13 |
70.05 |
18.08 |
26 |
|
| 4) |
Imports |
|
1,930.18 |
1,217.00 |
713.18 |
59 |
|
| 5) |
Exports |
|
1,005.93 |
663.00 |
342.93 |
52 |
|
| 6) |
Reserve Fund & |
|
|
|
Other Reserves |
|
107.10 |
79.10 |
28.00 |
35 |
|
|
| The
above results are very encouraging if looked from the view point of Bank's
conservative and cautious |
|
| lending
and Deposit mobilisation policies, which are designed to safe guard the
supreme interest of our |
|
| depositors
and their funds. With the continued support of the depositors alongwith the
efforts of Bank, |
|
| Deposits
have increased by 44% over the preceding year. The total advances have
registered increase by 79% |
|
| over
same period last year. Substantial increase in Import and Export business is
a fine job done by the |
|
| professional
managers and the teams through out the country. Under the present
circumstances a pretax profit |
|
| of
Rs. 88.13 million for the year 1996 showing an increase of 26% is a
remarkable achievement, considering |
|
| the
fact that the bank is continuously and aggressively pursuing the expansion
policy. |
|
|
| The
key branches of the bank are acquired in strategic and thriving markets on
ownership basis giving a boost |
|
| to
the assets structure of the bank. The long term expansion programe of our
branch network is the indispensible |
|
| factor
in widening our scope of commercial banking activities across the country
through all stratas of the |
|
| population.
By grace of 'Almighty Allah' today in respect of branch network, Bolan Bank
is leading among |
|
| new
commercial banks, with 40 branches all across the country. |
|
|
| Our
Training Institute at Regional Office, Karachi is continuing to assist us in
training our staff to meet our |
|
| expansion
programme. The Expansion policy backed with groomed staff with organisational
skills and orien- |
|
| tation
for service to our customers is providing stable and progressive deposit and
lending base and great |
|
| prospects
for high profitability of our operations and strong financial health of the
institution for future years |
| to come. |
|
|
| All
the branches of the bank are equipped with highly efficient and effective
computer programmes and |
|
| modern
communication facilities to provide quick professional financial services and
assistance to meet the |
|
| customers
needs on prompt basis. Customer service and convenience is on top of our
priorities. It is our |
|
| organisational
commitment to facilitate our client with zeal, enthusiasm, respect and
financial integrity. |
|
| Bolan
Bank is truly transforming to be dynamic bank for the business community of
the whole nation for |
|
| the
21 St. Century. |
|
|
| I
would like to express my deepest gratitude and thanks to the Ministry of
Finance Govt. of Pakistan and |
|
| State
Bank of Pakistan for the guidance recieved from time to time to run our Bank
within the frame work |
|
| of
the Prudential Regulations and on sound financial lines. My thanks are for
our Account Holders who have |
|
| been
supporting us by entrusting their business and deposit throughout the
country. |
|
|
| My
special thanks are to thousands of Share-holders who have put their enormous
confidence in the profes- |
|
| sional
Management team of our Bank to honour and cherish the long term commitments
of financial |
|
| strength,
soundness and integrity of their Bank. |
|
|
| I
also thank all our Executives, Officers and Staff of our Bank for their
sincere and dedicated services to |
|
| implement
our Bank's policies to make Bolan Bank, a truly, progressive, strong and
dependable Financial |
|
| Institution. |
|
|
| May
Allah Almighty bless you all. |
|
|
| Javed
Yunus |
|
| Chairman |
|
| Board
of Directors |
|
|
| Quetta |
|
| 05
March 1997 |
|
|
| AUDITORS'
REP0RT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of Bolan Bank Limited as at 31st
December, 1996 and the related |
|
| profit
and loss account and cash flow statement together with the notes forming part
thereof, for the year |
|
| then
ended, in which are incorporated the un-audited certified returns from the
branches except for eight |
|
| branches
which have been audited by us and we state that we have obtained all the
information and explana- |
|
| tions
which, to the best of our knowledge and belief were necessary for the
purposes of our audit and, after |
|
| due
verification thereof, found them satisfactory and, we report that: |
|
|
| (a)
in our opinion proper books of account have been kept by the Bank as required
by the Companies |
|
| Ordinance,
1984 and the returns referred to above received from the branches have been
found ad- |
|
| equate
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 and the Companies Ordinance, 1984
and |
|
| are
in agreement with books of account and are further in accordance with
accounting policies consis- |
|
| tently
applied; |
|
|
| 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 accor- |
|
| dance
with the objects of the bank and transactions of the Bank which have come to
our notice have |
|
| been
within the power 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 and the profit and loss
account and cash flow statement together with the notes forming |
|
| part thereof, give the information required
by the Banking Companies Ordinance, 1962 and the |
|
| Comapnies Ordinance, 1984, in the manner so
required and give a true and fair view of the state of the |
|
| Bank's affairs as at 31 St. December, 1996
and its true balance of the profit for the year then ended; and |
|
|
| (d)
in our opinion, Zakat deductible at source under the Zakat and Ushr
Ordinance, 1980 was deducted by |
|
| the Bank and deposited in Central Zakat
Fund established under Section 7. of that Ordinance. |
|
|
| BALANCE
SHEET AS AT 31ST DECEMBER, 1996 |
|
| CAPITAL
AND LIABILITIES |
|
|
|
|
1996 |
1995 |
|
|
|
Note |
Rupees |
Rupees |
|
|
| AUTHORISED
CAPITAL |
|
| 60,000,000
ordinary shares |
|
| of
Rs. 10/- each. |
|
|
600,000,000 |
600,000,000 |
|
| ISSUED,
SUBSCRIBED& PAID-UP CAPITAL |
|
| 30,000,000/-
ordinary shares |
|
| of
Rs. 10/- each fully paid in cash |
|
300,000,000 |
300,000,000 |
|
|
| RESERVE
FUND & OTHER RESERVES |
|
4 |
107,100,000 |
79,100,000 |
|
|
|
|
| DEPOSITS
& OTHER ACCOUNTS |
|
|
| Fixed
Deposits |
|
|
1,263,686,967 |
782,633,631 |
|
| Savings
Bank Deposits |
|
|
871,860,060 |
588,338,022 |
|
| Current
accounts, contingency |
|
| accounts,
etc. |
|
|
1,309,551,575 |
1,023,084,181 |
|
|
|
|
-------------- |
-------------- |
|
|
|
|
3,445,098,602 |
2,394,055,834 |
|
|
| BORROWINGS
FROM OTHER BANKING |
|
| COMPANIES,
AGENTS, ETC. |
|
| In
Pakistan |
|
|
5 |
57,662,000 |
139,145,132 |
|
|
| Outside
Pakistan |
|
|
NIL |
NIL |
|
|
|
|
-------------- |
-------------- |
|
|
|
|
57,662,000 |
139,145,132 |
|
| BILLS
PAYABLE |
|
|
77,676,888 |
68,077,478 |
|
|
|
| BILLS
FOR COLLECTION BEING BILLS |
|
| RECEIVABLE
AS PER CONTRA. |
|
| Payable
in Pakistan |
|
|
5,720,196 |
10,394,103 |
|
| Payable
outside Pakistan |
|
|
206,193,842 |
168,489,703 |
|
|
|
|
-------------- |
-------------- |
|
|
|
|
211,914,038 |
178,883,806 |
|
|
| OTHER
LIABILITIES |
|
| Provision
for taxation |
|
82,740,341 I |
77,500,000 |
|
| Others |
|
|
60,702,331 |
36,124,889 |
|
|
|
|
-------------- |
-------------- |
|
|
|
|
143,442,672 |
113,624,889 |
|
|
|
|
| CARRIED
FORWARD |
|
|
4,342,894,200 |
3,272,887,139 |
|
|
|
|
| PROPERTY
AND ASSETS |
|
|
|
1996 |
1995 |
|
|
|
|
Note |
Rupees |
Rupees |
|
| CASH |
|
| In
hand and with State Bank of Pakistan |
|
| &
National Bank of Pakistan (including |
|
| foreign
currency notes) |
|
|
6 |
683,140,433 |
544,982,959 |
|
|
| BALANCES
WITH OTHER BANKS |
|
| On
Current Accounts |
|
| In
Pakistan |
|
|
121,006,669 |
l6,375,624 |
|
| Outside
Pakistan |
|
|
49,686,161 |
27,843,347 |
|
|
|
|
-------------- |
-------------- |
|
|
|
|
70,692,830 |
34,218,971 |
|
| On
Deposit Accounts |
|
|
10,074,675 |
NIL |
|
|
|
|
-------------- |
-------------- |
|
|
|
|
80,767,505 |
34,218,971 |
|
|
|
|
|
|
| MONEY
AT CALL AND SHORT NOTICE |
|
135,000,000 |
175,000,000 |
|
| INVESTMENTS
(At cost less provisions) |
|
| i)
Securities of Federal and |
|
| Provincial
Governments |
|
|
610,738,000 |
735,688,000 |
|
| ii)
Federal Government Treasury bills |
|
NIL |
43,578,008 |
|
| iii)
Short Term Federal Bonds |
|
50,000,000 |
NIL |
|
| iv)
Fully paid-up ordinary shares |
|
NIL |
NIL |
|
| v)
Debentures, bonds, Participation Term |
|
|
|
| Certificates
& Term Finance Certificates |
|
NIL |
NIL |
|
| vi)
Other investments: |
|
|
|
|
| a)
National Prize Bonds |
|
|
NIL |
NIL |
|
| b)
Units of National Investment Trust |
|
NIL |
NIL |
|
| Gold |
|
|
NIL |
NIL |
|
|
|
|
-------------- |
-------------- |
|
| [Market
value of quoted investments & |
|
| book
value of unquoted investments |
|
| Rs.668,954,680,(1995:Rs.848,687,680)] |
|
660,738,000 |
779,266,008 |
|
|
| ADVANCES
(Other than bad and doubtful |
|
7 |
|
| debts
for which provision has been made to the |
|
| satisfaction
of the Auditors) |
|
| Loans,
cash credits, overdrafts, etc. |
|
| In
Pakistan |
|
|
1,937,477,534 |
1,064,681,508 |
|
| Outsid
Pakistan |
|
|
|
NIL |
NIL |
|
|
|
|
-------------- |
-------------- |
|
|
|
|
1,937,477,534 |
1,064,681,508 |
|
| Bills
discounted & purchased (excluding |
|
| Treasury
bills of the Federal & Provincial |
|
| Governments) |
|
|
| Payable
in Pakistan |
|
12,842,300 |
12,204,113 |
|
| Payable
outside Pakistan |
|
24,018,579 |
28,313,194 |
|
|
|
|
-------------- |
-------------- |
|
|
|
|
36,860,879 |
40,517,307 |
|
|
|
|
|
|
|
|
|
-------------- |
-------------- |
|
|
|
|
1,974,338,413 |
1,105,198,815 |
|
|
|
|
| CARRIED
FORWARD |
|
|
3,533,984,351 |
2,638,666,753 |
|
|
|
|
|
1996 |
1995 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| BROUGHT
FORWARD |
|
|
4,342,894,200 |
3,272,887,139 |
|
|
|
|
| ACCEPTANCES,
ENDORSEMENTS & |
|
| OTHER
OBLIGATIONS AS PER CONTRA |
|
700,659,846 |
649,585,416 |
|
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
|
|
|
| Profit
for the year before taxation |
|
88,129,852 |
70,047,874 |
|
| Less:
provision for taxation-current |
|
(60,000,000) |
(45,000,000) |
|
|
|
|
-------------- |
-------------- |
|
| Profit
after taxation |
|
28,129,852 |
25,047,874 |
|
| Add:
Unappropriated profit brought forward |
|
6,355 |
58,481 |
|
|
|
|
-------------- |
-------------- |
|
| Profit
available for appropriation |
|
28,136,207 |
25,106,355 |
|
|
|
|
| Appropriations: |
|
|
|
|
| Transfer
to Reserve Fund |
|
18,000,000 |
14,100,000 |
|
| Transfer
to General Reserve |
|
10,000,000 |
11,000,000 |
|
|
|
|
-------------- |
-------------- |
|
|
|
|
28,000,000 |
25,100,000 |
|
|
|
|
|
|
|
|
-------------- |
-------------- |
|
| Unappropriated
Profit |
|
136,207 |
6,355 |
|
|
| CONTINGENT
LIABILITIES |
|
| i)
Claims against the bank not |
|
| acknowledged
as debt |
|
|
1,332,646 |
NIL |
|
| ii)
Money for which the bank is |
|
|
| contingently
liable: |
|
|
|
| a)
Contingent liability in respect of |
|
|
| guarantees
given on behalf of |
|
|
| directors
or officers |
|
|
NIL |
NIL |
|
| b)
Contingent liability in respect of |
|
|
| guarantees
given favouring: |
|
|
|
| 1)
Government |
|
|
201,056,380 |
226,234,699 |
|
| 2)
Banks and other financial institutions |
|
|
NIL |
NIL |
|
| 3)
Others |
|
|
|
NIL |
NIL |
|
| iii)
Arrears of cumulative preference dividends |
|
NIL |
NIL |
|
| iv)
Liability on bills of exchange rediscounted |
|
NIL |
NIL |
|
| v)
Liability on account of outstanding forward |
|
|
| exchange
contracts. |
|
|
|
1,443,806,521 |
643,787,127 |
|
|
|
-------------- |
-------------- |
|
|
|
|
|
|
|
|
5,043,690,253 |
3,922,478,910 |
|
|
============== |
============== |
|
| These
accounts should be read in conjunction with the attached notes. |
|
|
|
|
|
1996 |
1995 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| BROUGHT
FORWARD |
|
|
3,533,984,351 |
2,638,666,753 |
|
|
|
|
| BILLS
RECEIVABLE BEING BILLS FOR |
|
| COLLECTION
AS PER CONTRA |
|
| Payable
in Pakistan |
|
5,720,196 |
10,394,103 |
|
| Payable
Outside Pakistan |
|
206,193,842 |
168,489,703 |
|
|
|
-------------- |
-------------- |
|
|
|
|
211,914,038 |
178,883,806 |
|
| CONSTITUENTS'
LIABILITIES FOR |
|
| ACCEPTANCES,
ENDORSEMENTS & |
|
| OTHER
OBLIGATIONS AS PER CONTRA |
|
700,659,846 |
649,585,416 |
|
| PREMISES
LESS DEPRECIATION |
|
| Cost |
|
|
| At
the beginning of the year |
|
52,406,432 |
19,461,997 |
|
| Additions
during the year |
|
84,158,371 |
32,944,435 |
|
| Disposals
during the year |
|
NIL |
NIL |
|
|
|
-------------- |
-------------- |
|
|
|
|
136,564,803 |
52,406,432 |
|
| Less:
Depreciation todate |
|
11,820,223 |
5,254,716 |
|
|
|
-------------- |
-------------- |
|
|
|
|
124,744,580 |
47,151,716 |
|
| FURNITURE
AND FIXTURES, VEHICLES |
|
| AND
OTHER FIXED ASSETS LESS DEPRECIATION |
|
| Cost |
|
|
|
|
|
| At
the beginning of the year |
|
105,505,006 |
46,848,281 |
|
| Additions
during the year |
|
|
53,053,032 |
60,810,778 |
|
| Disposals
during the year |
|
|
(4,586,007) |
(2,154,053) |
|
|
|
-------------- |
-------------- |
|
|
|
|
153,972,031 |
105,505,006 |
|
| Less:
Depreciation todate. |
|
|
65,359,941 |
38,630,449 |
|
|
|
-------------- |
-------------- |
|
|
|
|
88,612,090 |
66,874,557 |
|
| CAPITAL
WORK IN PROGRESS |
|
|
130,998,858 |
82,426,039 |
|
| OTHER
ASSETS INCLUDING SILVER |
|
| i)
Stationery and stamps on hand |
|
10,607,865 |
7,855,342 |
|
| ii)
Mark-up / interest and other |
|
| income
accrued or receivable |
|
95,364,953 |
91,701,007 |
|
| iii)
Advances, deposits and advance rent |
|
29,423,647 |
32,368,577 |
|
| iv)
Advance tax |
|
|
75,572,202 |
60,974,924 |
|
| v)
Preliminary, formation and organisation |
|
| expenses,
renovation/development |
|
NIL |
2,997,607 |
|
| vi)
Prepaid expenses |
|
|
18,289,878 |
9,482,314 |
|
| vii)
Branch adjustments account |
|
17,983,369 |
48,638,955 |
|
| viii)
Others |
|
|
5,534,576 |
4,871,897 |
|
|
|
-------------- |
-------------- |
|
|
|
|
252,776,490 |
258,890,623 |
|
| NON-BANKING
ASSETS ACQUIRED IN |
|
| SATISFACTION
OF CLAIMS |
|
|
NIL |
NIL |
|
|
|
-------------- |
-------------- |
|
|
|
5,043,690,253 |
3,922,478,910 |
|
|
============== |
============== |
|
|
| PROFIT
AND LOSS ACCO UNT |
|
| FOR
THE YEAR ENDED 31 ST DECEMBER, 1996 |
|
|
| EXPENDITURE |
|
|
1996 |
1995 |
|
|
|
|
Rupees |
Rupees |
|
| Interest
on deposits, borrowings, |
|
| etc.
and or return * |
|
197,067,721 |
123,951,588 |
|
|
|
|
| Salaries
and allowances and provident fund |
|
| [including
salary and allowances of Chief |
|
| Executive
Rs. 1,118,400 (1995:Rs. 1,039,200)] |
|
63,588,616 |
45,854,660 |
|
|
|
|
| Directors'
and Local Committee |
|
| members
fees and allowances. |
|
16,000 |
15,000 |
|
|
|
|
|
|
|
29,721,925 |
22,622,669 |
|
| Rent,
taxes, insurance, lighting etc. |
|
|
|
|
| Law
charges |
|
|
588,002 |
173,844 |
|
|
|
|
|
|
|
9,061,660 |
7,532,311 |
|
| Postage,
telegrams, telephones & stamps. |
|
|
|
|
| Auditors
fees |
|
|
230,000 |
200,000 |
|
| Depreciation
on and repairs to the Bank's property |
|
36,668,784 |
24,600,096 |
|
|
|
|
|
