| Al-Meezan Investment Bank Limited |
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| Annual
Report 2001 |
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| CONTENTS |
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| Our Vision |
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| Mission
Statement |
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| Corporate
Information |
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| Sponsors'
Profile |
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| Shariah
Board's Profile |
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| Notice
of Annual General Meeting |
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| Chairman's
Message |
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| Directors'
Report to the Shareholders |
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| Report
of the Shariah Advisor |
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| Auditors'
Report to the Members |
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| Balance
Sheet |
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| Profit
and Loss Account |
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| Statement
of Changes in Equity |
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| Cash
Flow Statement |
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| Notes
to and Forming Part of the Accounts |
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| Pattern
of Shareholding |
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| OUR
VISION |
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| Establish
Islamic banking as banking of first choice |
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| to
facilitate implementation of an equitable economic |
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| system,
providing a strong foundation for establishing |
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| a
fair and just society for mankind. |
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| MISSION
STATEMENT |
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| To
be a premier Islamic investment bank, offering a |
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| one-stop
shop for innovative value-added products |
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| and
services to our customers within the bounds of |
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| Shariah,
while optimizing the stakeholders' value |
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| through
an organizational culture based on learning, |
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| fairness,
respect for individual enterprise and |
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| performance. |
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| CORPORATE
INFORMATION |
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| BOARD
OF DIRECTORS |
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| H.E.
Sheikh Ebrahim bin Khalifa AI-Khalifa |
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Chairman |
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| Irfan
Siddiqui |
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Chief Executive Officer |
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| Abdulazim
M.A. AI-Shamali |
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| Ziad
H. Rawashdeh |
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| Tarik Kivanc |
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| Dr.
Jamil Abdul Karim Jaroudi |
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| Waleed
Abdullah AI-Muraikhi |
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| Zaigham
Mahmood Rizvi |
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| Mohammad
Ali Qureshi |
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| Ariful Islam |
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| COMPANY SECRETARY |
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| Gohar
Iqbal Shaikh |
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| MANAGEMENT |
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| Irfan
Siddiqui |
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Chief Executive Officer |
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| Ariful Islam |
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Chief Operating Officer |
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| Najmul
Hassan |
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Senior Executive Vice
President |
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| Gohar
Iqbal Shaikh |
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Senior Vice President |
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| Sohail Khan |
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Vice President |
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| Arshad
Majeed |
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Vice President |
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| Muhammad
Haris |
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Vice President |
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| Emad-ul-Hasan |
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Vice President |
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| ADVISORY |
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| Zafar
Aziz Osmani |
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Human Resource Advisor |
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| Dr.
Muhammad Imran Usmani |
|
Shariah Advisor |
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| Mehnaz
Ikram |
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Legal Advisor |
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| BANKERS |
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| ABN
Amro Bank |
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AI Baraka Islamic Bank |
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| Bank
AI-Habib Limited |
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Emirates Bank
International |
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| Habib
Bank Limited |
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Faysal Bank Limited |
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| National
Bank of Pakistan |
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Muslim Commercial Bank
Limited |
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| United
Bank Limited |
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| LEGAL
ADVISOR |
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| Rizvi
Isa & Hosain |
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| AUDITORS |
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| A.F.
Ferguson & Co. |
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| REGISTERED
OFFICE |
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| 4th
Floor, Tower-C, Finance & Trade Centre, Shahrah-e-Faisal, |
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| Karachi
- 74400, Pakistan. Ph: 9221-5650771-6, Fax: 9221 56~0763 |
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| Website:
www. meezanbank.com, E-mail: info@meezanbank.com |
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| REGISTRAR
AND SHARE |
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| TRANSFER
OFFICE |
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| THK
Associates (Pvt) Limited |
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| Ground
floor, Sheikh Sultan Trust Building No. 2, Beaumont Road, |
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| Karachi-75530,
Pakistan. Ph: 9221 5689021, Fax: 5655595 |
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| SPONSORS
PROFILE |
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| PAKISTAN
KUWAIT INVESTMENT COMPANY (PVT) LIMITED (PKIC) |
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| PKIC,
a 'AAA' rated financial institution, is a joint venture between the
Governments of Pakistan |
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| and
Kuwait. It has an asset base of Rs. 9.9 billion (December 2000) and is one of
the most |
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| profitable financial institutions in Pakistan. It has nurtured
diversified experience in foreign |
: |
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| currency
transactions, project finance and syndications in its 22 years of operations. |
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| SHAMIL
BANK OF BAHRAIN E.C. (SBB) |
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| SBB
is a leading Islamic financial institution based in Bahrain and is a
subsidiary of the globally |
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| renowned
Dar AI Maal AI Islamic Group (DMI) based in Geneva. SBB has sizeable
investments |
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| in
Pakistan and is also the main sponsor of AI Faysal Investment Bank Limited
and Faysal Bank |
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| Limited. |
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| ISLAMIC
DEVELOPMENT BANK JEDDAH (IDB) |
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| An
international Islamic financial institution with a capital base of
approximately US$ 5 billion. |
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| IDB
has a presence in 51 member countries and has played a dominant role in the
economic |
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| development
of Muslim nations through financial support during its 26 years of
operations. |
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| KUWAIT
AWQAF PUBLIC FOUNDATION (KAPF) |
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| KAPF
is a charitable institution attached to the Ministry of Awqaf & Islamic
Affairs, Government |
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| of
Kuwait. It has a global investment portfolio and is governed strictly by
Shariah principles. |
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| SAUDI
PAK INDUSTRIAL & AGRICULTURAL INVESTMENT COMPANY (PVT) LTD. |
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| A
joint venture between the Kingdom of Saudi Arabia and Government of Pakistan,
set up to |
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| promote
industrial development in Pakistan. It has a strong equity base of Rs. 2.7
billion and a |
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| balance
sheet size of Rs. 8.6 billion (December 2000). |
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| The
members of the Shariah Board of Meezanbank are Internationally-renowned
scholars serving |
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| on
the boards of many Islamic banks operating in different countries. The
members of the |
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| Shariah
Board are: |
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| ·
Justice Muhammad Taqi Usmani - Chairman |
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| ·
Dr. Abdul Sattar Abu Ghuddah |
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| ·
Sheikh Essam M. Ishaq |
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| ·
Dr. Muhammad Imran Usmani - Shariah Advisor |
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| JUSTICE
MUHAMMAD TAQI USMANI |
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| Justice
Muhammad Taqi Usmani is a renowned figure in the field of Shariah,
particularly in |
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| Islamic
Finance. Currently he holds advisory positions in a number of financial
institutions |
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| practicing
Islamic Banking and Finance. |
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| Justice
Muhammad Taqi Usmani has vast experience in Islamic Shariah and has been
teaching |
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| various
subjects on Islam for 39 years. He has held the position of Judge on the
Shariat Appellate |
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| Bench,
Supreme Court of Pakistan since 1982. He also edits the magazine Albalagh in
English |
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| and
Urdu and contribute articles in leading Pakistani newspapers. |
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| Justice
Muhammad Taqi Usmani graduated from Punjab University in 1970 and also holds
an |
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| LLB
from Karachi University. Prior to that, he completed Takhassus course i.e.
the specialization |
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| course
of Islamic Fiqh and Fatwa (Islamic Jurisprudence) from Jamia Darul-Uloom
Karachi. |
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| Other
positions currently held are: |
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| Vice
President, Darul-Uloom Karachi |
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| Deputy
Chairman/Permanent Member of Islamic Fiqh Academy, Jeddah |
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| Chairman
Centre for Islamic Economics Pakistan since 1991 |
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| Chairman
Shariah Council AAOIFI |
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| Chairman
Shariah Board IslamiQ.com |
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| Chairman
Shariah Board Saudi American Bank, Jeddah |
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| Chairman
Shariah Board HSBC plc, Global Islamic Finance, London |
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| Chairman
Shariah Board Robert Fleming Oasis Fund, Luxembourg |
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| Chairman
Shariah Board Citi Islamic Investment Bank, Bahrain |
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| Chairman
Shariah Board Amana Investments Ltd., Sri Lanka |
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| Vice
Chairman, Shariah Board, Abu Dhabi Islamic Bank, Abu Dhabi |
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| Member,
Shariah Board, Dow Jones Islamic Market Indexes |
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| DR.
ABDUL SATTAR ABU GHUDDAH |
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| Dr.
Abdul Sattar Abu Ghuddah holds positions of Shariah Advisor and Director,
Department of |
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| Financial
Instruments at AI-Baraka Investment Co. of Saudi Arabia. He holds a PhD in
Islamic |
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| Law
from AI Azhar University Cairo, Egypt. He is an active member of Islamic Fiqh
Academy |
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| and
the Accounting & Auditing Standards Board of Islamic Financial
Institutions. |
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| Dr.
Abdul Sattar teaches Fiqh, Islamic studies and Arabic in Riyadh and has
performed the |
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| valuable
task of researching and compiling information for the Fiqh Encyclopedia in
the Ministry |
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| of
Awqaf and Islamic Affairs in Kuwait. He was a member of the Fatwa Board in
the Ministry |
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| from 1982 to 1990. |
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| Other
positions currently held are: |
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| Member
Shariah Board, IslamiQ.com |
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| Member
Shariah Board, Dow Jones Islamic Market Indexes |
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| Member
Shariah Board, Islamic Stocks.com |
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| Member
Shariah Board, UBS AG (UBS Warburg) Switzerland |
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| Member
Shariah Board, Saudi American Bank, Jeddah |
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| Member
Shariah Supervisory Board, First Islamic Investment Bank |
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| SHEIKH
ESSAM M. ISHAQ |
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| Sheikh
Essam M. Ishaq graduated in Political Science from McGill University,
Montreal, Canada. |
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| Currently
he is teaching Fiqh and Aqeeda courses in UAE and Bahrain at Umm AI-DarDa'
Islamic |
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| Centre.
He holds the position of Shariah Advisor at Discover Islam Bahrain. He holds
the position |
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| of
Director in the following Business and Educational institutions: |
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| Discover
Islam |
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| Middle
East Traders |
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| Zawaya
Property Development |
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| AI
Iman Islamic School |
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| Muslim
Educational Society |
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| DR.
MUHAMMAD IMRAN USMANI - Shariah Advisor |
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| Dr.
Muhammad Imran Usmani is a Ph.D. in Islamic Economics and graduated as
scholar from |
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| Jamia
Darul-Uloom, Karachi, with specialization in Islamic Jurisprudence. He is
also involved |
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| in
conducting training sessions for Meezanbank staff in Islamic finance and
Shariah issues. |
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| Dr.
Usmani has been teaching at several branches of Islamic learning since 1998
at Jamia Darul- |
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| Uloom,
Karachi. |
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| Other
positions currently held are: |
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| Member
State Bank Commission for Transformation of Financial System, Pakistan |
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| Shariah
Editor and Advisor, IslamiQ.com, Dubai |
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| Shariah
Advisor, UBS AG (UBS Warburg), Switzerland |
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| NOTICE
OF ANNUAL |
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| GENERAL
MEETING |
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| Notice
is hereby given that the 5th Annual General Meeting of the members of
AI-Meezan |
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| Investment
Bank Limited will be held Inshallah on Tuesday, November 20, 2001 at 10:00
a.m. |
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| at
4th Floor, Tower C, Finance & Trade Centre, Karachi to transact the
following business: |
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| ORDINARY
BUSINESS |
|
| 1
To confirm the minutes of the 4th Annual General Meeting held on |
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| November
16, 2000. |
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| 2.
To receive and adopt the Directors' and Auditors' Reports and Audited |
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| Accounts
for the year ended June 30, 2001. |
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| 3.
To consider and approve cash dividend @ 17.5% (Rs. 1.75 per share) |
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| as
recommended by the Directors. |
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| 4.
To appoint the auditors for the year ending June 30, 2002 and fix their |
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| remuneration.
The present auditors M/s A.F. Ferguson & Co., Chartered |
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| Accountants,
retire and being eligible, offer themselves for reappointment. |
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| 5.
To transact any other business that may be placed before the meeting with |
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| the
permission of the chair. |
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|
For and on behalf of |
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|
the Board of Directors |
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| Karachi |
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(Gohar Iqbal Shaikh) |
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| Date:
September 26, 2001 |
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Company Secretary |
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| NOTE: |
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| 1.
Members' Register of the Company will be closed from October 19, 2001 to
October |
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| 27,
2001 (both days inclusive). Transfer received at the Company's Registrar
office |
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| under
the address M/s. THK Associates (Pvt.) Limited, Ground Floor, Sheikh |
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| Sultan
Trust Building # 2, Beaumont Road, Karachi at the close of business on |
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| October
18, 2001 will be treated in time for purpose of entitlement of dividends. |
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| 2.
A member eligible to attend and vote at this meeting may appoint another
member |
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| as
proxy to attend and vote in the meeting. Proxies in order to be effective
must be |
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| received
by the Company at the registered office not later than 48 hours before the |
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| time
of holding of the meeting. |
|
|
| 3.
An individual Beneficial Owner of the Central Depository Company, entitled to
vote |
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| at
this meeting must bring his/her National Identity Card with him/her to prove
his/her |
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| identity,
and in case of proxy must enclose an attested copy of his / her National |
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| Identity
Card. Representatives of corporate members should bring the usual documents |
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| required
for such purpose. |
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| CHAIRMAN'S
MESSAGE |
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| It
is indeed gratifying that our Islamic bank, established just over |
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| three
years ago has, Alhamdollilah, been such a success. The |
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| Bank's
achievements reflect well on our highly motivated and |
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| competent
management and professionals, who have developed |
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| a
full range of investment banking services and have established |
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| Although
we face additional challenges arising from recent |
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| global
economic conditions and international events, Meezanbank |
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| will
confidently proceed with the implementation of its business |
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| strategy,
with the following areas of focus: |
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| PRODUCT
DEVELOPMENT |
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| The
key to our future success will be our ability to continue developing
innovative, Shariah- |
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| compliant
products targeted at our niche market. |
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| During
the past year the Bank introduced a new Ijarah (or leasing) product, in order
to |
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| address
'big-ticket' project finance requirements and the financing of equipment used
in the |
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| expansion
or modernization of existing plants. Ijarah is a Shariah-compliant and
flexible financing |
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| method
that is ideally suited for project and equipment financing. We were able to
launch this |
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| product
as a result of the leasing licence granted, during the year, to the Bank by
the Securities |
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| and
Exchange Commission of Pakistan. We are proud to report that Meezanbank was
the first |
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| investment
bank to have been granted such a licence. |
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| Soon
the Bank plans to launch its second product targeted at the retail market- a
consumer |
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| car-leasing
product, AI-Meezan's Car Ijarah. This will be shortly followed by an asset
management |
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| product,
AI-Meezan's Growth Fund, a non-discretionary fund that will invest in listed
equities |
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| and
Shariah-compliant Term Finance Certificates. |
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| The
Bank has developed and offered to its clients a new Istijrar product, which
provides |
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| working
capital financing. In addition, a new Islamic Term Finance Certificate,
structured in |
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| accordance
with the concept of Musharaka, has been developed which the Bank itself
expects |
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| to
issue, in order to diversify its own funding sources. Such Certificates will
be issued, subject |
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| to
market conditions, after having obtained all of the necessary regulatory
approvals. |
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| STRUCTURED
FINANCE AND ADVISORY |
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| One
of the Bank's significant achievements during the past year was an innovative
Mudaraba |
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| transaction.
Meezanbank, together with Group associates - Faysal Bank Limited, Pakistan
Kuwait |
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| Investment
Company (Pvt.) Ltd. and AI Faysal Investment Bank Limited - conceptualised
and |
|
| structured
a manufacturing Mudaraba called Fayzan Manufacturing Mudaraba, which will own |
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| and
operate a polyester spinning line under contract with ICI Pakistan Limited.
The total project |
|
| cost
is Rs. 1,450 million financed on a 62% equity and 38% Ijarah structure.
Meezanbank has |
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| a
30% share in the equity of the project. |
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| During
the year, the Bank has received important financial advisory mandates. It was
appointed |
|
| as
a joint financial advisor to the Privatisation Commission for the divestment
of the Government's |
|
| shareholdings
in Muslim Commercial Bank and Sui Southern Gas Company. Also, it was
appointed |
|
| as
financial advisor to Oman Oil Company, a large Government-owned energy
company in Oman, |
|
| to
assist with the evaluation of various privatisation opportunities in
Pakistan. We have significant |
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| professional
expertise which enables us to provide such financial advisory services and,
Inshallah, |
|
| this
activity will grown in future years. |
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|
| CUSTOMER
LIABILITY PRODUCTS |
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| The
customer liability product, AI-Meezan's RIBA FREE, Which was launched in
July, 2000, has |
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| performed
very well. Customer investments in the product stood at Rs. 644 million at
year end, |
|
| higher
than the expected level. Furthermore, the product has now been relaunched
with additional |
|
| features,
and is now available in tenors ranging from 3 months to 5 years. The
distribution |
|
| arrangements
have also been expanded under a contract with Pakistan's leading courier
company, |
|
| TCS.
The product is therefore now available at the counters of ABN Amro Bank in
Karachi, |
|
| Lahore,
Islamabad and at the counters of TCS in Hyderabad, Faisalabad, Rawalpindi and
Peshawar. |
|
|
| Cross-border
transactions may be resumed in the wake of the removal of sanctions on
Pakistan. |
|
| Meezanbank,
with its strong Middle East sponsors, should be ideally placed to take
advantage |
|
| of
such international business. The financial advisory mandate received from
Oman Oil Company |
|
| is
an example of our potential in this regard. |
|
|
| As
a leader in financial services, Meezanbank has all of the requisite
ingredients for continued |
|
| success,
namely: |
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| a
strong Shariah Board of high international standing |
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| strong
institutional sponsors |
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| a
strong capital base |
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| a
highly professional, motivated and dedicated team of management and
professionals |
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| an
excellent track record |
|
|
| I
would like to take this opportunity to thank our Shariah Board, our sponsors,
our clients, and |
|
| our
dedicated team of management and professionals for their respective
contributions to the |
|
| growth
of Meezanbank; and I pray for the Bank's continued success in the year ahead. |
|
|
|
H. E. Sheikh Ebrahim bin Khalifa AI-Khalifa |
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|
Chairman |
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|
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|
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| DIRECTORS'
REPORT TO THE SHAREHOLDERS |
|
|
|
|
| The
Directors are pleased to present their fourth report on the Bank's financial
results and |
|
| business
activities for the fiscal year ended June 30, 2001. |
|
|
|
Rupees in Million |
|
|
2001 |
2000 |
|
| FINANCIAL
HIGHLIGHTS |
|
| Authorised
Share Capital |
|
1,000 |
1,000 |
|
| Paid-up
Capital |
|
901 |
721 |
|
| Share
Subscription Money |
|
36 |
|
| Capital
Reserve |
|
151 |
51 |
|
| Revenue
Reserve |
|
205 |
69 |
|
|
| Total
Shareholders' funds |
|
1,257 |
877 |
|
|
| Net
profit for the year before taxation |
|
397 |
170 |
|
| Less:
Taxation |
|
31 |
44 |
|
|
| Profit
after tax |
|
366 |
126 |
|
|
| ECONOMIC
REVIEW |
|
| The
year ended June 30, 2001 has been yet another difficult year for Pakistan.
The fragile |
|
| economy
of the country was badly effected by one of the worst droughts in the
country's history. |
|
| High
oil prices placed an additional burden on the foreign exchange reserves,
which were already |
|
| under
pressure following the resumption of foreign debt servicing. In the wake of
these problems |
|
| the
government worked hard at instituting policy initiatives that would address
some of the |
|
| imbalances
in the system. The GDP growth rate for the fiscal year 2001 was 3.1% as
against |
|
| a
target of 4.3%. On a positive note, as a result of strong fiscal management,
the fiscal deficit |
|
| has
been reduced to a more acceptable 5.3% of GDP, down from 7.1% in the previous
year. |
|
| The
foreign exchange reserves position has also improved substantially and there
are hints that |
|
| cross-border
financing transactions may begin to flow in the near future. As a result of
these |
|
| initiatives
and the positive steps taken by the Government to document the economy some
of |
|
| the
programs of the World Bank and the International Monetary Fund have also now
been |
|
| resumed. |
|
|
| OPERATING
RESULTS OF THE BANK |
|
| We
are happy to report that by the Grace of Allah, Meezanbank has achieved very
good results |
|
| for
the year. Net Profit after tax increased by 194% from Rs. 126 million to Rs.
366 million. |
|
| Earnings
Per Share increased from Rs. 1.75 to Rs. 4.09. Strong profit growth is
attributed to |
|
| exceptional
foreign exchange gains that resulted principally as a result of the
substantial |
|
| depreciation
of the Pak Rupee vis-a-vis the US dollar. We wish to highlight that such
gains may |
|
| not
be expected to recur in future years. In addition, the Bank was able to
substantially increase |
|
| its
profits from financing activities, which increased by 78% during the year. It
is also commendable |
|
| that
the Bank has been able to maintain its excellent track record of no over dues
or defaults |
|
| in
its financing portfolio. The management of the Bank has to be congratulated
on this |
|
| achievement.
The track record of profit after tax of the Bank over the last four years is
given |
|
| below: |
|
|
| Total
Shareholders' Funds increased from Rs. 877 million last year to Rs. 1,257
million on |
|
| June
30, 2001. This is a growth of 50% and makes Meezanbank one of the largest
capitalized |
|
| investment
banks in the country. The history of the amount available under this head is
shown |
|
| below: |
|
|
| IJARAH |
|
| The
Board is pleased to report that Meezanbank is the first investment bank to
have been granted |
|
| a
Leasing (Ijarah) Licence by the Securities and Exchange Commission of
Pakistan in January |
|
| 2001.
The addition of Ijarah to the Bank's product menu will enhance its ability to
pursue project |
|
| financing
and other similar activities. |
|
|
| SHARIAH
SUPERVISORY BOARD |
|
| We
are grateful to Maulana Justice Muhammad Taqi Usmani for having accepted our
invitation |
|
| to
head the Shariah Supervisory Board in January this year. The Board includes
eminent |
|
| international
scholars namely Dr. Abdul Sattar Abu Ghuddah, Sheikh Essam M. Ishaq and |
|
| Dr.
Muhammad Imran Usmani. The Board meets periodically to review the activities
of the Bank |
|
| and
during the year two meetings have been held. All transactions undertaken by
the Bank are |
|
| also
reviewed and approved by our Shariah Advisor, Dr. Muhammad Imran Usmani. We
are |
|
| thankful
to the members of the Board and in particular our Shariah Advisor for the
invaluable |
|
| contribution
made by them. |
|
|
| CREDIT
RATING |
|
| The
JCR-VIS Credit Rating Co. Ltd.(JCR), an affiliate of Japan Credit Rating
Agency, Ltd., Japan |
|
| has
graded the Bank's long term entity rating at AA with stable outlook, while
the short term |
|
| rating
has been graded at A1 +, which is the highest possible in this category. |
|
|
| While
granting the above ratings JCR has acknowledged the large capital base,
strong support |
|
| from
prestigious sponsors, excellent asset quality, high level of liquidity,
Islamic banking niche, |
|
| impressive
earnings performance, innovative product development and emphasis on
information |
|
| technology. |
|
|
| ACCOUNTING
& AUDITING ORGANISATION FOR |
|
| ISLAMIC
FINANCIAL INSTITUTIONS |
|
| We
are also pleased to report that the Bank became the first financial
institution in Pakistan to |
|
| acquire
membership of Accounting & Auditing Organisation for Islamic Financial
Institutions |
|
| (AAOIFI).
AAOIFI is an international body, which is working on the preparation and
promulgation |
|
| of
uniform accounting and auditing standards for Islamic Financial Institutions
through out the |
|
| world. |
|
|
| DIRECTORS |
|
| Since
the last report, Mr. Adnan Ahmad Ali, Mr. Azzaroog Rajab, Mr. Nasser AI Marri
and |
|
| Mr.
Hasan AI Jabri resigned from the Board and were replaced by Mr. Ariful Islam,
Mr. Tarik |
|
| Kivanc,
Mr. Mohammad Ali Qureshi and Dr. Jamil Jaroudi. The Board would like to place
on |
|
| record
the appreciation for the contribution made by the outgoing Directors and
welcomes the |
|
| new
Directors. |
|
|
| SOCIO-ECONOMIC
ACTIVITIES |
|
| The
Board has also recently approved the formation of a non-profit oriented fund
called "Meezan |
|
| Small
Business Support Fund". The objective of the Fund is to focus on poverty
alleviation by |
|
| encouraging
socio-economic activity at the grass-roots level thereby promoting
employment. |
|
| It
is heartening to note that the staff of the Bank has also chosen to
contribute from their personal |
|
| sources
towards this Fund. |
|
|
| DIVIDEND |
|
| The
Board of Directors is pleased to propose a cash dividend of 17.5% ( Rs 1.75
per share) as |
|
| against
15% (Rs 1.50 per share) given last year. |
|
|
| STAFF |
|
| A
highly professional but lean management team is our hallmark. Having
completed three years |
|
| of
operation, the Bank now has a very competent team in place that is committed
to developing |
|
| Islamic
finance. We have been very cautious in adding headcount and total number of
staff was |
|
| increased
by only 4 persons from 17 to 21. |
|
|
| AUDITORS |
|
| The
auditors M/s. A. F. Ferguson & Co., Chartered Accountants, retire and
being eligible, offer |
|
| themselves
for re-appointment. |
|
|
| ACKNOWLEDGEMENT |
|
| We
would also like to take this opportunity to thank our customers for their
patronage and belief |
|
| in
Islamic Banking, to the State Bank of Pakistan and Securities & Exchange
Commission of |
|
| Pakistan
for their guidance, to all the team members who have worked very hard in
ensuring a |
|
| healthy
and prosperous year for the Bank, and to the shareholders of the Bank for
their trust and |
|
| confidence. |
|
|
|
Chief Executive/e Officer |
|
Chairman |
|
|
|
| REPORT
OF THE SHARIAH ADVISOR |
|
|
| In
the name of Allah, The Beneficent, The Merciful |
|
|
| The
Shareholders of AI-Meezan Investment Bank Limited : |
|
|
| Assalam
Alaikum Wa Rahmat Allah Wa Barakatuh |
|
|
| I
am pleased to give the following report on the Shariah compliant activities
of AI-Meezan |
|
| Investment
Bank Limited for the year ended June 30, 2001. |
|
|
| Certificates
of Islamic Investments: During the year the Bank launched its |
|
| customer
liability product, "AI-Meezan's RIBA-FREE" which is based on the |
|
| principles
of Musharaka. |
|
|
| Equity
Investments: The Bank invests in Islamically permissible listed shares. |
|
|
|
|
| Fayzan
Manufacturing Mudaraba · During the year, the Bank invested in the |
|
| equity
of Fayzan Manufacturing Mudaraba as one of its sponsors. |
|
| The
structure of the Mudaraba and its business activities were discussed |
|
| and
reviewed thoroughly and seems to be acceptable. |
|
|
| Murabaha
Portfolio: Murabaha transactions were undertaken during the year. |
|
| The
Murabaha agreements us |
