20000309

17.2 Auditors' remuneration 1999 1998

(Rupees in '000)

Audit fee 1,125 985

Special certifications/examinations

and sundry advisory services 115 332

Tax services 458 991

Out of pocket expenses 102 501

1,800 2,809

18. OTHER INCOME

Gain of sale of fixed assets 1,766 2,642

Rent on property 9,810 9,517

Amortisation of deferred income 1,588 593

Rent from lockers 3,345 3,228

Other receipts 4,480 3,747

20,989 19,727

19. TAXATION

Taxation charge in the accounts is based on taxable income. After taking into account the estimated Head Office administrative expense which are not incorporated in these accounts, provision against non-performing advances (net of recoveries and write offs) and accelerated depreciation etc., taxation charge for the year comes to 58% of the accounting profit. Write off on non-performing advances have been considered as an allowable expense.

20. REMUNERATION OF GENERAL

MANAGER AND EXECUTIVES General manager Executives

1999 1998 1999 1998

(Rupees in '000) (Rupees in '000)

Managerial remuneration 1,458 1,200 17,802 12,945

Retirement benefits Ñ Ñ 2,707 1,972

Rent and house maintenance 489 540 7,510 4,505

Utilities 135 120 1,901 1,000

Medical 91 30 268 206

Conveyance 62 170 1,891 1,224

Others Ñ Ñ 5,471 3,159

2,235 2,060 37,550 25,011

Number of persons 1 1 22 14

The Bank also provides free use of bank maintained vehicles to the general manager and certain executives in accordance with their term of employment.

21. MATURITIES OF ASSETS

AND LIABILITIES 1999 (Rupees in '000)

Total Upto one Over one Over one year Over five

month month to to five years years

one year

Assets

Cash 2,378,901 1,249,608 Ñ 92,000 1,037,293

Balance with other banks 1,257,770 456,310 801,460 Ñ Ñ

Money at call and short notice 725,000 525,000 200,000 Ñ Ñ

Investments 1,567,058 16,404 841,388 709,266 Ñ

Advances Ñ net of provisions 7,271,936 583,016 4,754,611 1,934,309 Ñ

Operating fixed assets 222,912 Ñ Ñ 222,912 Ñ

Capital work in progress Ñ civil work 8,821 Ñ Ñ 8,821 Ñ

Other assets 1,531,600 Ñ 488,866 1,042,734 Ñ

14,963,998 2,830,338 7,086,325 4,010,042 1,037,293

Liabilities

Deposits and other accounts 11,200,361 6,351,252 3,185,838 1,663,271 Ñ

Borrowings from other banks, agents etc. 1,676,616 312,761 1,363,855 Ñ Ñ

Bills payable 206,824 206,824 Ñ Ñ Ñ

Other liabilities 1,379,762 321,587 17,661 Ñ 1,040,514

Liability against assets subject to finance lease 99,350 3,627 35,332 60,391 Ñ

14,562,913 7,196,051 4,602,686 1,723,662 1,040,514

Net Balance 401,085 (4,365,713) 2,483,639 2,286,380 (3,221)

Unremitted profit 401,085

1998

Assets 16,305,648 3,562,596 8,109,553 3,714,203 919,296

Liabilities 15,514,248 9,430,932 4,401,948 752,464 928,904

Net Balance 791,400

22. SEGMENT ANALYSIS

22.1 Geographic segment

These financial statements represents operations of Pakistan branches only and all assets represents transactions entered by the Pakistan Branches.

Total assets employed do not include any intra group items.

22.2 Segment By Class

Of Business Deposits Advances (Gross)

1999 1998 1999 1998

(Rupees in '000) (Rupees in '000) (Rupees in '000) (Rupees in '000)

% % % %

Chemical and pharmaceutical 1,140,915 10.19 1,142,984 8.79 721,684 9.70 390,604 5.50

Agribusiness 1,277 0.01 1,407 0.01 426,145 5.73 420,818 5.93

Textile 369,088 3.30 222,672 1.71 1,752,039 23.55 1,416,706 19.97

Cement 2,550 0.02 50 Ñ Ñ Ñ Ñ

Communication 253,653 2.26 472,176 3.63 47,500 0.64 48,387 0.68

Sugar 141 0.00 99,558 0.77 692,433 9.31 446,004 6.29

Shoes and leather garments 4,791 0.04 4,412 0.03 338,177 4.54 249,650 3.52

Automobile and

transportation equipment 72,296 0.65 229,687 1.77 104,735 1.41 45,582 0.64

Financial 145,009 1.29 271,640 2.09 386,315 5.19 376,648 5.31

Insurance 89,802 0.80 86,052 0.66 Ñ Ñ Ñ

Transportation 170,008 1.52 390,724 3.01 7,464 0.10 Ñ Ñ

Electronics and electric

appliances 25,600 0.23 26,279 0.20 207,272 2.79 185,134 2.61

Production and transmission

of energy 519,383 4.64 83,196 0.64 728,413 9.79 651,474 9.18

Others (including individuals) 8,405,848 75.05 9,969,732 76.69 2,028,638 27.26 2,864,663 40.37

11,200,361 100.00 13,000,569 100.00 7,440,815 100.00 7,095,670 100.00

22.3 Segment By Sector Deposits Advances (Gross)

1999 1998 1999 1998

(Rupees in '000) (Rupees in '000) (Rupees in '000) (Rupees in '000)

% % % %

Public/Government 524,916 4.92 468,859 3.61 583,802 7.85 244,770 3.45

Private 10,675,445 95.31 12,531,710 96.39 6,857,013 92.15 6,850,900 96.55

11,200,361 100.23 13,000,569 100.00 7,440,815 100.00 7,95,670 100.00

23. CURRENCY BREAKDOWN OF

ASSETS AND LIABILITIES

Assets Liabilities

1999 1998 1999 1998

(Rupees in '000) (Rupees in '000) (Rupees in '000) (Rupees in '000)

% % % %

Pak Rupees 13,446,441 89.86 15,555,180 93.84 10,968,923 73.30 11,546,218 70.81

U.S. Dollars 1,394,753 9.32 963,741 5.81 3,691,878 24.67 4,200,930 58.63

Pound Sterling 103,310 0.69 27,612 0.17 164,482 0.01 529,447 2.88

Deutsche Mark 14,370 0.10 4,114 0.02 24,226 0.16 23,353 0.14

Japanese Yen 291 0.00 961 0.01 69,711 0.47 2,761 0.02

Other European Currencies 1,958 0.01 21,155 0.13 42,486 0.28 745 0.00

Other Currencies 2,875 0.02 2,885 0.02 2,292 0.02 2,194 0.01

14,963,998 100.00 16,575,648 100.00 14,963,998 100.00 16,305,648 100.00

24. GENERAL

24.1 Figures have been rounded off to the nearest thousand rupee.

24.2 The format of financial statements for banks as prescribed by State Bank of Pakistan in BPRD Circular No. 31 dated 13 August 1997 has been modified suitably whatever there were no figures to report.

General Manager Ñ Pakistan Financial Controller Ñ Pakistan

ANNEXURE

Statement showing written off loans or any other financial relief

of five hundred thousand rupees or above provided

during the year ended 31 December 1999

(Rupees in '000)

S. Name and address of the Name of partners/proprietor Outstanding Other Amount

No. person (with N.I.C No.) liabilities on 01 financial written off

January 1999 reliefs

provided

1. Worldwide Equipment. M. Arif Khan 578 Ñ 578

2,18/c, Khayaban-e- Proprietor

Tanzeem, D.H.A. Karachi

2. East West Trading Company Rana Mohammad Tufail 16,681 Ñ 16,681

21 Bird Wood Road Begum Khurshid Tufail

Lahore Mrs. Azra Khurshid

Anjum Tufail

3. Adnan Carpets Shahid Bhutta E-24, LCCHS 30,272 Ñ 23,365*

E-24, LCCHS Lahore

Lahore

4. Continental Hosiery Ehsan-Ul-Haq, s/o Asmat 601 Ñ 601

Kabari Market ullah Proprietor

Jhang Road Kabari Market

Faisalabad Jhang road Faisalabad

5. Cactus Sports Wear Nauroz F. Dossa 7,429 Ñ 7,229*

G-1, Block 7 & 8, Joseph Furtado

KCHS, (behind horse shoe),

Shahrah-e-Faisal, Karachi

55,561 Ñ 48,453

Informations regarding national identity card numbers and father's name of some of the above mentioned borrowers were not available from the banks' records.

* The difference between outstanding liability as at 1 January 1999 and amount written-off represents amounts recovered during the year.