Standard Chartered Annual Report 2011

Standard Chartered Bank (Pakistan) Limited - Board of Directors Left to Right: Raheel Ahmed, Shahid Zaki, Najam I.
Chaudhri, Christos Papadopoulos (Chairman), Mohsin A. Nathani (Chief Executive), Parvez Ghias October 2011
Standard Chartered Bank (Pakistan) Limited Executive Committee Members October 2011
Company Information
Board of Directors
Mr. Christos Papadopoulos Mr. Mohsin Ali Nathani Mr. Andrew James Hardacre Mr. Raheel Ahmed Mr. Najam I. Chaudhri Mr. Shahid Zaki Mr. Parvez Ghias Chairman Chief Executive Officer
Registered Office
Standard Chartered Bank (Pakistan) Limited P.O. Box No. 5556, I.I. Chundrigar Road Karachi 74000 Pakistan Tel: (021) 32450000 Fax: (021) 32414914
Main Office
Standard Chartered Bank (Pakistan) Limited P.O. Box No. 5556, I.I. Chundrigar Road Karachi 74000 Pakistan Tel: (021) 32450000 Fax: (021) 32414914
Company Secretary
Mr. Asif Iqbal Alam
Audit Committee of the Board

Mr. Najam I. Chaudhri Mr. Shahid Zaki Mr. Andrew James Hardacre Chairman Member Member
Website
www.standardchartered.com.pk
Registrar and Share Transfer Office Auditors

M/s KPMG Taseer Hadi & Co Chartered Accountants M/s Central Depository Company of Pakistan Limited (Share Registrar Department) CDC House, 99-B, Block B SMCHS, Main Shahra-e-Faisal Karachi 74400 Toll Free: 0800-CDCPL (23275) Fax: (021) 35655595 Email: info@cdcpak.com
Legal Advisors
Haidermota & Co Barristers at Law & Corporate Counselors
Annual Report 2011
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Table of Contents
Page Notice of Annual General Meeting Directors Report Managements Statements on Internal Controls and Risk Management Framework Report of Shariah Advisor Auditors Report on Statement of Compliance with the Code of Corporate Governance Statement of Compliance with the Code of Corporate Governance Auditors Report to the Members Un-Consolidated Financial Statements Auditors Report to the Members on Consolidated Financial Statements Consolidated Financial Statements Pattern of Shareholding Form of Proxy 03 05 08 12 14 15 19 20 85 86 151
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Annual Report 2011
STANDARD CHARTERED BANK (PAKISTAN) LIMITED NOTICE OF ANNUAL GENERAL MEETING

Notice is hereby given that the Sixth Annual General Meeting of the shareholders of Standard Chartered Bank (Pakistan) Limited (Bank) will be held on Friday, March 30, 2012 at 4:00 PM at Jinnah Auditorium, The Institute of Bankers Pakistan, Moulvi Tamizuddin Khan Road, Karachi, to transact the following business: A. ORDINARY BUSINESS 1. To receive, consider and adopt the Audited Accounts of the Bank and consolidated accounts of the Bank and its subsidiaries for the year ended December 31, 2011 along with the Directors' and Auditors' Reports thereon. 2. To consider the appointment of external auditors namely KPMG Taseer Hadi & Co., Chartered Accountants and to authorize the Chief Executive Officer and Chief Financial Officer to fix their remuneration. KPMG Taseer Hadi & Co., Chartered Accountants being eligible have offered themselves for re-appointment. 3. To consider and approve cash dividend @ Re. 1/- per share of Rs. 10 each (i.e. 10%) for the year ended December 31, 2011 as recommended by Board of Directors. B. SPECIAL BUSINESS 4. To grant approval to the remuneration paid to the Directors in accordance with the Articles of Association of the Bank and in that connection to pass the following resolution, as ordinary resolution, with or without modification, addition or deletion: RESOLVED THAT the decision of the Board of Directors of Standard Chartered Bank (Pakistan) Limited to pay a fee of Rs. 3,580,000/- during the year ended December 31, 2011 to the non-executive members of the Board, in terms of their discretion under the Articles of Association of the Bank, be and is hereby confirmed and approved by the shareholders. A statement of material facts under section 160 (1) (b) of the Companies Ordinance, 1984 relating to the aforesaid special business to be transacted in the said Annual General Meeting is appended below. C. OTHER BUSINESS 5. To transact any other business as may be placed before the meeting with the permission of the chair.
By Order of the Board
Asif Iqbal Alam Company Secretary
Karachi: March 5, 2012
Annual Report 2011
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NOTICE OF ANNUAL GENERAL MEETING

Notes: 1. 2. The Share Transfer Books of the Bank will remain closed from March 23, 2012 to March 30, 2012 (both days inclusive). A member entitled to attend and vote at the above meeting is entitled to appoint another member as his/ her proxy to attend and vote instead of him/ her. Proxies, in order to be valid, must be received by the Bank at its registered office marked for the attention of the office of the Company Secretary, not less than forty-eight hours before the time for holding the meeting and must be duly stamped, signed and witnessed. A member shall not be entitled to appoint more than one proxy. Members are requested to notify change in their address, if any, to the Share Registrars, M/s. Central Depository Company of Pakistan Limited (Share Registrar Department), CDC House, 99-B, Block B SMCHS, Main Shahra-e-Faisal, Karachi 74400, Toll Free: 0800-CDCPL (23275), Fax: (021) 35655595, Email: info@cdcpak.com. A. For attending the Meeting: i) In case of individuals, the account holder or sub-account holder and/or the person whose securities are in group account and their registration details are uploaded as per the Regulations, shall authenticate his identity by showing his original Computerized National Identity Card (CNIC) or original passport at the time of attending the Meeting.
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ii) In case of corporate entity, the Board of Directors' resolution / power of attorney with specimen signature of the nominee shall be produced at the time of the Meeting. B. For Appointing Proxies: i) In case of individuals, the account holder or sub-account holder and / or the person whose securities are in group account and their registration details are uploaded as per the Regulations, shall submit the proxy form as per the above requirement.
ii) The proxy form shall be witnessed by two persons whose names, addresses and CNIC numbers shall be mentioned on the form. iii) Attested copies of CNIC or the passport of the beneficial owners and the proxy shall be furnished with the proxy form. iv) The proxy shall produce his original CNIC or original passport at the time of the Meeting. v) In case of corporate entity, the Board of Directors' resolution / power of attorney with specimen signature shall be submitted along with proxy form to the Bank. Statement under section 160(1) (b) The meeting fee payable to the non-executive members of the Board was approved by the Board of Directors in terms of Article 60 of the Articles of Association of the Bank. This meeting fee requires approval of the shareholders in Annual General Meeting in terms of paragraph C-2 of Regulation G-1 of prudential regulations for Corporate / Commercial Banking issued by the State Bank of Pakistan. The non-executive members of the Board are interested in the payment of fees and remaining members of the Board have no interest in the matter.
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Annual Report 2011
Directors Report
On behalf of the Board of Directors, I am pleased to present the Directors' Report of Standard Chartered Bank (Pakistan) Limited (SCBPL) along with the audited financial statements and auditors' report thereon for the year ended 31 December 2011. Economy In comparison with 2010, the economy is showing signs of recovery with price pressure being subsided; inflation declined to 9.7% y/y in December 2011, the first single digit CPI print in two years. This has allowed SBP to cut rates by 200bps in 2011 and bring down policy rate to 12%. Manufacturing output posted growth of 0.83% y/y during July to December 2011 compared to a 2% decline in the same period last year. Agriculture production is also likely to be higher on improved cotton and rice output. State Bank of Pakistan forecasts that growth will pick up to 3.8% in FY12, the highest in the last four years. Private credit has remained weak at 4% in 2011, as heavy government deficit financing has crowded out the private sector. Government borrowing from the banking sector has swelled to PKR 4.2trn by end 2011, from PKR 3trn at the end of 2010. The banking sector remains well capitalized and highly liquid, with AD ratio of 57% at September 2011 from 61% at the end of 2010. However, rising non performing loan (NPLs) are a matter of concern. NPLs to loans ratio has increased to 16.7% by September 2011, from 14.7% end of 2010. However, concerns remain over the widening trade deficit and sharp drop in foreign capital inflows. This has led to 5% y/y depreciation in the Rupee (PKR), with official net FX reserves with SBP declining to USD 12.9bn by December 2011 compared to USD 14.8bn in June 2011. Large external debt payments including repayments to the IMF and suspended aid flows from the US administration indicate that pressure on PKR is likely to rise in 2012. These fiscal concerns along with the increase in energy prices are likely to put pressure on inflation going forward. Operating Results and Business Overview December 31, 2011 (PKR millions) Balance Sheet Paid-up capital Total equity Deposits Advances - gross Advances - net Investments - net 38,716 54,589 235,953 151,610 129,620 104,375 FY 2011 (PKR millions) Profit and Loss Revenue Administrative expenses Other non mark-up expenses Operating profit (before provisions and tax) Provisions (net of recoveries) Profit before tax Profit after tax 26,755 13,240 603 12,912 4,481 8,431 5,446 23,474 12,851 628 9,994 4,431 5,563 3,606 38,716 51,073 220,266 157,906 139,269 72,637 FY 2010 (PKR millions) December 31, 2010 (PKR millions)
The Bank continues to deliver strong financial performance despite a challenging business environment, uncertain political and security situation and depreciation of the Rupee. Our annual profits (before tax) have grown by 52% to PKR 8.4 billion in 2011, with earnings per share up at PKR 1.41 from PKR 0.93 in 2010. This is testimony of the disciplined execution of our strategy of improving profitability, enhancing customer service, and people engagement. The growth in profitability is attributed to a steady revenue line which remains resilient and underpinned by high levels of activity across our businesses. Revenue increased to a record PKR 26.8 billion fostered by improved net interest margins and volumes. Both Consumer and Wholesale banking businesses are exhibiting good momentum. Income from Consumer banking assets is stable and focus is continuing on building secured and SME portfolio and diversified cost effective retail liabilities base. Wholesale Banking income was driven by enhanced volumes and margins in assets, Corporate Finance and FX flows. The bank's cost of funds has further improved to 4.4% in 2011 as Current and Savings accounts continue to grow in double digits. The ratio of these low cost deposits to the total deposit base is also at its record highest of 84%. Despite high inflation and currency depreciation, the bank's administrative costs have been well controlled and only increased marginally by 3%. We are continuing with our strategy of investing into distribution and intellectual capital through the headroom created from optimization of existing cost base. The bank's balance sheet remains highly liquid and well capitalized as we continue to manage risks and returns prudently. The deposits base has increased by PKR 15.6 billion to PKR 235.9 billion and with the Advances to Deposits Ratio of 55%, the surplus liquidity has been deployed in short term Government Securities. The capital base is strong which is evident from the Capital Adequacy Ratio of 12.9% compared to requirement of 10%. We continue to be prudent on provisioning against non-performing assets resulting in a high loss coverage ratio of 83%. Outlook Despite the challenging external environment we believe good opportunities exist and intend to follow a prudent growth strategy supported by the balance sheet strength, effective risk management practices, unique global capabilities and product offering. In line with the strategic priorities, the bank will continue to focus on deepening client relationships, utilising cross selling opportunities and further improving customer service and engagement.
Annual Report 2011
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Directors Report
Dividend Final cash dividend of 10% (Re. 1/- per share) has been recommended by the Board of Directors for approval at the sixth Annual General Meeting of the Bank's shareholders. External Annual Audit The financial statements of SCBPL have been audited without any qualification by the auditors of the Bank, namely KPMG Taseer Hadi & Co., Chartered Accountants. Credit Rating Pakistan Credit Rating Agency (PACRA) maintained the Bank's long-term and short-term ratings of AAA (Triple A) and A1+ (A One Plus) respectively in 2011. The Bank's outstanding listed subordinated TFC has also been assigned AAA rating. These ratings denote the lowest expectation of credit risk emanating from an exceptionally strong capacity for timely payment of financial commitments. Sustainability As the largest International Bank in the country, with 143 branches in 32 cities of Pakistan, Standard Chartered is now truly a part of the social fabric of this country. Through our sustainability strategy we seek to strengthen relationships between our business, community, government and customers. In Pakistan, the Bank's community efforts are focused on education and health. Through our education programme, the Bank has extended more than 3,000 scholarships to deserving students and supports institutions of both vocational and higher learning. Through our health programme, Seeing is Believing, we are contributing to the tackling of avoidable blindness, with more than 550,000 cataract operations funded to date. A 20% reduction in cataract blindness in Pakistan is attributable to the efforts of the Bank. As a result, the Government of Pakistan has made Standard Chartered its official and only corporate partner. The Bank extends supports to a Hemodialysis facility, and also runs a programme called Living with HIV to create awareness about HIV and AIDS. To encourage employees to participates in these initiatives and engage with the communities, Standard Chartered provides three days paid volunteering leave to each member of staff. In 2011, SCBPL employees logged 3,743 volunteering days as opposed to 2,000 last year. Moreover, Standard Chartered PLC has directly contributed approximately USD 96,000 during the year as part of the Seeing is Believing programme. Performance of the Group In compliance with section 236(5) of the Companies Ordinance, 1984, attached with this report are the consolidated financial statements of SCBPL and its subsidiaries (the Group) namely - Standard Chartered Leasing Limited, Standard Chartered Services of Pakistan (Private) Limited and Standard Chartered Modaraba, for the year ended December 31, 2011. Operating Results December 31, 2011 (PKR millions) Balance Sheet Paid-up capital Total equity Deposits Advances - gross Advances - net Investments - net Profit and Loss Revenue Administrative expenses Non mark-up expenses Operating profit (before provisions and tax) Provisions (net of recoveries) Profit before tax Profit after tax Corporate Governance As required by the Code of Corporate Governance (the Code), a prescribed statement by the Board, along with Auditors' Review Report thereon, forms part of this Annual Report. The directors are pleased to give the following statement as required by clause (xix) of the Code: The financial statements present fairly the Bank's state of affairs, results of its operations, cash flows and changes in equity. Proper books of accounts of the Bank have been maintained. Appropriate accounting policies have been consistently applied in the preparation of financial statements and accounting estimates are based on reasonable and prudent judgment. The International Financial Reporting Standards and International Accounting Standards as applicable in Pakistan have been followed in the preparation of financial statements. 27,110 13,408 608 13,094 4,507 8,586 5,553 23,747 12,998 633 10,117 4,359 5,758 3,741 38,716 55,659 235,875 159,653 137,309 104,040 38,716 52,100 220,188 163,713 144,722 72,294 December 31, 2010 (PKR millions)
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Annual Report 2011
Directors Report
The system of internal control is sound in design and has been effectively implemented and monitored. There is no doubt upon the Bank's ability to continue as a going concern. There has been no material departure from the best practices of corporate governance, as detailed in the listing regulations. Summarized key operating and financial data is tabulated in this Annual Report. Details of Board meetings held and attended by the directors form part of this report. All statutory liabilities, if any, have been adequately disclosed in the financial statements.
Statements on Internal Controls and Risk Management Framework The management of SCBPL is responsible for establishing and maintaining a system of adequate internal controls and procedures. Management's statements on Internal Controls and Risk Management Framework form part of this Annual Report. Directors' Meetings Six (6) meetings of the Board of Directors of SCPBL were held during the year. Attendance by each director was as follows: S No Name No. of meeting(s) held during the tenor in the year 6 6 6 6 6 6 6 Total no. of meeting(s) attended * 3 6 5 6 6 5 3
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Christos Papadopoulos, Chairman Mohsin Ali Nathani, Chief Executive Officer Najam I. Chaudhri, Director Parvez Ghias, Director Shahid Zaki, Director Andrew James Hardacre, Director Raheel Ahmed, Director
* Leave of absence was granted to the Directors who could not attend some of the meetings. Statement of investments of Provident, Gratuity and Pension Funds Value of investments including accrued income of provident and gratuity funds as at December 31, 2011 on the basis of un-audited accounts is: Provident Fund Management Staff Gratuity Fund Non- Management Staff Gratuity Fund Management Staff Pension Fund Non- Management Staff Pension Fund Pattern of Shareholding The pattern of shareholding as required under section 236(2)(d) of the Companies Ordinance, 1984, and Clause (xix) of the Code of Corporate Governance forms part of this Annual Report. At December 31, 2011, Standard Chartered Bank, UK (holding company) held 98.99% shares of SCBPL. External Auditors The Audit Committee has suggested the name of KPMG Taseer Hadi & Co., Chartered Accountants as external auditors of the Bank for the next term. The Board of Directors, on the suggestion of Audit Committee recommended the name of retiring auditors KPMG Taseer Hadi & Co., Chartered Accountants as external auditors for the next term. The retiring auditors, being eligible, offer themselves for re-appointment in the forthcoming Annual General Meeting. Appreciation and Acknowledgment We take this opportunity to express our gratitude to our customers and business partners for their continued support and trust. We offer sincere appreciation to the State Bank of Pakistan for their guidance and cooperation extended to the Bank. Finally, we are also thankful to our associates, staff and colleagues for their committed services provided to our valued customers. On behalf of the Board PKR '000 1,602,187 879,254 37,094 9,438 71,664
Mohsin Ali Nathani Chief Executive Karachi: March 05, 2012
Annual Report 2011
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Management's Statements on Internal Controls and Risk Management Framework

The following statements are made by the management to meet the requirements of the State Bank of Pakistan (SBP) BSD Circular letter No. 2 of 2005 and BSD Circular letter No. 3 of 2005. Internal Controls Management of Standard Chartered Bank (Pakistan) Limited (the Bank) is responsible for establishing and maintaining a sound system of internal controls aimed at achieving the following objectives of the Bank: 1. Efficiency and effectiveness of operations Compliance with applicable laws and regulations Reliability of financial reporting The Management has adopted different strategies to ensure effective monitoring and improvement of internal controls. These include Internal Audit and Assurance and Operational Risk Management & Assurance Framework (ORMAF) in which assurance responsibilities are divided into three lines of defense i.e. first being the business function, second is the Operational Risk Assurance and support from Group Internal Audit is the third line of defense. The policies and procedures in all significant areas and as per the directives of the regulators have been duly approved by the Board. An organization structure has been established which supports clear lines of communication and tiered levels of authority with accountability. The Bank has an effective Internal Audit Department, which reports directly to the Audit Committee of the Board. The department periodically carries out reviews of branches and various departments / units to monitor the compliance of Bank's policies and procedures based on a yearly plan which is approved by the Audit Committee. The Bank has further strengthened its Internal Audit function, during the year 2011, by performing more detailed risk-based audits of its overall operations. This process involves alignment of Internal Audit framework, responsibilities and tools with the international best practices, resulting in more proactive role of Internal Audit in timely identification, reporting and monitoring of controls. Internal control policies, tools and reporting structures have been enhanced to provide greater clarity over roles and responsibilities. Relevant training materials have also been updated and deployment is underway. Management gives due consideration to the recommendations made by the internal and external auditors for improvements in the internal control system and take action to implement such recommendations. The management has put in place evaluation and approval procedures for major capital expenditure and other transactions. There is an annual budgeting and strategic planning process. Financial forecasts are reviewed during the year on a periodic basis to reflect significant changes in business environment. Regular reporting and monitoring of financial performance of the departments and the Bank as a whole, using operating statistics and monthly management accounts which highlight key performance indicators and variance from budgets and forecasts is in place. Review and implementation of health, safety, environment and contingency management processes and other significant policies are carried out and reporting mechanism is in place. SCBPL is also in the process of adopting an internationally accepted Committee of Sponsoring Organization of the Treadway Commission (COSO) Internal Controls Integrated Framework and available best international practices in relation to Internal Controls over Financial Reporting (ICFR) for the implementation of SBP guidelines on Internal Controls. The Bank has devised a well defined and comprehensive Internal Control Program along the lines of staged roadmap, as suggested by SBP. Accordingly, the Bank has completed a detailed documentation of the existing processes and controls, together with a comprehensive gap analysis of the control design and development of implemented remediation plans for the gaps. Furthermore, the Bank has developed a comprehensive management testing and reporting framework for ensuring ongoing operating effectiveness of majority of key controls and has significantly addressed the design improvement opportunities identified to complete the project related initiatives. Simultaneously, the bank has also deployed its resources in the form of a cross-functional dedicated team comprising personnel from various functions to complete the work on Quality Assurance/Validation on the implemented remediation plans, within the stipulated timeline.
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Annual Report 2011

In accordance with SBP directives, all stages of ICFR are likely to be completed by September 30, 2012. A Long Form Report will also be submitted to SBP by the statutory auditors, through the Bank, by December 31, 2012. A quarterly progress report duly approved by the Board Audit Committee, to the extent of ICFR roadmap completed, will also be submitted to SBP latest by April 30, 2012. Risk Management Framework The Bank in an effort to fully implement guidelines issued by State Bank of Pakistan (SBP) on risk management throughout the Bank, embarked on integrating enterprise wide risk management, which brings together various types of risks being faced by the entire organization under one umbrella. Through the risk management framework the Bank seeks to manage efficiently the core risks: credit, market and liquidity risk. These arise directly through the Bank's commercial activities, whilst operational risk, reputational risks, pension risk, capital risk and strategic risk are normal consequences of any business undertaking. The basic risk management principles followed by the Bank include: Balancing risk and return: Risk is taken in line with the requirements of the Bank's stakeholders. Risk should be taken within the Bank's risk appetite, consistent with the approved strategy. Any such risks are avoided which have a material probability of causing financial distress to the Bank or its clients or customers. Responsibility: Given the Bank is in the business of taking risk, it is everyone's responsibility to ensure that risk taking is both disciplined and focused. The Bank takes account of its social responsibilities and its commitment to customers in taking risk to produce a return. Accountability: Risk is taken only within agreed authorities and where there is appropriate infrastructure and resource. All risk taking must be transparent, controlled and reported. Anticipation: The Bank looks to anticipate future risks and to ensure awareness of all risk. Competitive Advantage: The Bank seeks to achieve competitive advantage through efficient and effective risk management and control. Risk management: The Bank aims to implement best practices and have a specialist risk function of international standards, with strength in depth, experience across risk types and economic scenarios. Ultimate responsibility for the effective management of risk rests with the Company's Board of Directors. Acting within an authority delegated by the Board, the Executive Committee reviews specific risk areas and monitors the activities of the Risk Committee (RC) and the Asset and Liability Committee (ALCO). RC headed by Chief Risk Officer (CRO), through authority delegated by the Board through the Bank's Executive Committee, is responsible for credit risk, market risk, operational risk, compliance risk and regulatory risk, legal risk and reputational risk. ALCO, through authority delegated by the Board through the Bank's Executive Committee, is responsible for management of the Bank's liquidity, capital adequacy and structural foreign exchange risk. The Pensions Executive committee through authority delegated by the Board through the Bank's Executive Committee is responsible for the management of pension risk. The day to day responsibility for managing risk rests with CRO who oversees and manages the risk through a team of managers; Senior Credit Officer responsible for credit risk in Wholesale Bank, Head of Consumer Credit responsible for credit risk in Consumer Bank (including SME), Head of Special Assets Management responsible for remedial risk management, Head of Credit Risk Controls responsible for collateral management, security documentation, credit MIS and controls, Head of Market Risk responsible for liquidity risk and risks associated with price movements, arising from interest and exchange rate movements and Head of Operational Risk responsible for enterprise wide operations. The Bank has established policies, procedures, processes, and controls and have provided the Risk team adequate support by way of risk systems and tools for measuring and reporting risk for monitoring, controlling, reviewing and managing risk. Following are the important factors of the risk management function within the Bank. Credit Risk Credit risk is the risk that a counter party will not settle its obligations in accordance with agreed terms. Credit exposures may arise from lending, trade finance, securities and derivative exposures. Credit exposures include both individual borrowers and groups of connected counterparties and portfolios in the banking and trading books.
www.standardchartered.com.pk Annual Report 2011 09

The Board of Directors has delegated down the authority to RC through the Bank's Executive Committee to establish risk appetite and make recommendations to the Board for approval of risk appetite and policies for managing credit risk. The CEO and the Executive Committee in turn rely on CRO and the Risk Committee to determine these and recommend for their support and Board's approval. The RC is also delegated down by the BOD responsibility to delegate credit authorities to independent Risk Officers. Credit risk appetite is established through business strategy papers and underwriting standards by the business managers, which are approved by the Board once recommended, and supported by the Executive Committee. Specific procedures for managing credit risk within Wholesale and Consumer (including SME) are determined at the Senior Credit Officer and Head of Consumer Credit levels for their respective jurisdictions with specific policies and procedures being adapted to different risk environments and business goals. Credit analysis includes review of facility details, credit grade determination and financial spreading / ratio analysis. Portfolio review, Early Alerts and Stress Testing based on scenario analysis is a combined responsibility of Client Relationship and Risk and Finance function. Client relationship origination and credit approval roles are clearly segregated throughout Wholesale and Consumer Banks. Wholesale Banking: Within the Wholesale Banking business, an alpha numerical risk grading system is used for quantifying the risk associated with a counter-party. The grading is based on a probability of default measure, with customers analysed against a range of quantitative and qualitative measures. Expected Loss is used for further assessment of individual exposures and portfolio analysis. There is a clear segregation of duties with loan applications being prepared separately from the approval chain. Consumer Banking: For Consumer Banking, program based standard credit application forms are generally used, which are processed in central units for different products and market segments. Consumer Banking Analytics team has developed Bureau scores and uses Bureau data for portfolio monitoring and for underwriting new business. Medium enterprises relationship based business of Consumer Bank operates much like Wholesale banking with numerical risk grading system for quantifying counter party risk. As with Wholesale Banking, origination and approval roles are segregated. Market Risk The Bank recognises market risk as the exposures created by potential changes in market prices and rates. Market risk exposures arise primarily from interest rate and foreign exchange related contracts. The Bank has no significant exposure to equity and commodity price risk. Market risk is managed by the Head of Market Risk reporting directly to the CRO, who agrees policies and procedures and levels of risk appetite in terms of Value at Risk ("VaR"). Limits are then proposed by the business within the terms of agreed policy. These are agreed and delegated down by RC under delegated authority from the BOD, and are monitored by the Head of Market Risk as part of an independent risk management function. Policies cover both trading and non-trading books. In addition to market risk policies, as well as VaR and other market risk limits, independent stress testing of portfolios, factor sensitivity measures and derivatives are also employed as additional risk management tools to manage and hedge market risk exposures. Risk models are periodically back tested against actual results to ensure that pre-determined levels of accuracy are maintained. Liquidity Risk The Bank defines liquidity risk as the risk that the Bank either does not have sufficient financial resources available to meet all its obligations and commitments as and when they fall due, or can access them only at an excessive cost. Liquidity risk is managed through the Asset and Liability Committee ("ALCO"). This committee, chaired by the CEO, is responsible for both statutory and prudential liquidity. Liquidity risk is monitored through the internal liquidity risk management policy. A range of tools are used for the management of liquidity. These comprise commitment and wholesale borrowing guidelines, key balance sheet ratios, medium term funding requirements and day to day monitoring of future cash flows. In addition, liquidity contingency funding plans are reviewed periodically to ensure that alternative funding strategies are in place and can be implemented on a timely basis to minimise the liquidity risk that may arise due to unforeseen adverse changes in the market place. A substantial portion of the Bank's assets are funded by customer deposits made up of current and savings accounts and other deposits. These customer deposits, which are widely diversified by type and maturity, represent a stable source of funds. The Bank also maintains significant levels of marketable securities either for compliance with local statutory requirements or as prudential investments of surplus funds. Operational Risk Operational risk is the risk of a direct or indirect loss being incurred due to an event or action arising from the failure of technology, processes, infrastructure, personnel and other risks having an operational risk impact.
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Annual Report 2011

The Country Operational Risk Committee ("CORC") has been established to ensure that an appropriate risk management framework is in place at a grass root level, and to report, monitor and manage operational, social, ethical and environmental risk. The CORC is chaired by the CEO, and CRO is an active member of this forum. All business units within the Bank monitor their operational risks using set standards and indicators. Significant issues and exceptions are reported to CORC and are also picked up by the independent Risk function for discussion at the Risk Committee chaired by the CRO. Disaster recovery procedures, business contingency planning, self-compliance assurance and internal audits also form an integral part of the operational risk management process. Reputational Risk Reputational risk is any material adverse effect on the relations between the Bank and any one of its significant stakeholders. It is Bank policy that the protection of the Bank's reputation should take priority over all activities including revenue generation at all times. Reputational risk is not a primary risk, but will arise from the failure to effectively mitigate one or more of country, credit, liquidity, market, legal, regulatory and operational risk. It may also arise from the failure to comply with Social, Environmental and Ethical standards. All staff are responsible for day to day identification and management of reputational risk. Pension Risk Pension risk is the potential for loss due to having to meet an actuarially assessed shortfall in the Bank's defined benefits pension schemes. Pension obligation risk to a bank arises from its contractual or other liabilities to or with respect to an occupational pension scheme. It represents the risk that additional contributions will need to be made to a pension scheme because of a future shortfall in the funding of the scheme. The Bank assesses and monitors the assets and liabilities within the defined benefit scheme with the support of independent actuarial advisers. Actuarial methodologies are used for determining the present values of the assets and liabilities of the scheme. The assumptions used allow for the projected trends in the salaries, turnover and mortality of the membership. The Bank's Pension Executive Committee has oversight of the pension schemes and reviews the assets and liabilities position on a regular basis. Capital Risk Capital risk is the risk arising from sub optimal allocation of capital or increase in cost of capital. The Bank manages its demand for capital by regular monitoring of capital requirements and asset exposures. The Bank's Asset and Liability Committee (ALCO) monitors Risk Weighted Assets (RWA) growth and provides guidance for RWA management, capital structure and maintenance of capital ratio. Strategic Risk Strategic risk is the potential for opportunity loss from failure to optimise the earnings potential of the Bank's franchise. The Bank reviews the capital implications of business growth and capital as part of the strategy process. The Bank regularly monitors its capital to ensure an appropriate capital adequacy level for the sustainability of expanding operations and ability to withstand various stress testing scenarios. The Bank has integrated robust risk management disciplines corresponding to the underlying strategic direction that has built a well balanced business between the business segments and appropriate liquidity level. Compliance and Regulatory Risk Compliance and Regulatory risk includes the risk of non-compliance with regulatory requirements. The Compliance and Regulatory risk function is responsible for establishing and maintaining an appropriate framework of compliance policies and procedures. Compliance with such policies and procedures is the responsibility of all managers. Legal Risk Legal Risk is the risk of unexpected loss, including reputational loss arising from defective transaction or contracts, claims being made or some other event resulting in a liability or other loss for the Bank, failure to protect the title to and ability to control the rights to assets of the Bank (including intellectual property rights), changes in the law or jurisdiction risk. The Bank manages legal risk through Legal function, Legal risk policies and procedures and effective use of its internal and external lawyers. By order of the Board
Mohsin Ali Nathani Chief Executive Officer

Report of SCBPL Shariah Advisor

For the year ended December 31, 2011
The year under review was the eight year of Islamic commercial banking for Standard Chartered Bank (Pakistan) Limited (SCBPL) through the Saadiq platform. During this year the bank developed a number of new products and also arranged of number of structured transactions after due approval from the Shariah Advisor. Business Review At the close of the year ended December 31, 2011 the Bank had total financing assets of Rs. 20,272 Million. The breakup of these assets in different modes of Islamic finance is as follows:
Islamic Financing and Investment 2011
Diminishing Musharika 50.57%
Musharakah 0.32% Murabaha 19.30%
Ujrah (Saadiq Credit Card) 0.55%
Musawamah 0.04% Sukuk 29.22%
The year under review SCBPL selected several Islamic financing modes for the investment. Significant percentage of the assets (51%) has been financed using the Diminishing Musharakah mode, (29 %) represents Sukuk holdings under various Islamic financing modes and Murabaha transactions (including Export refinance) represented only 19% of the portfolio. SCBPL apart from other structured transactions, also structured and arranged the Syndicated Term Financing for Pakistan Mobile Communications Limited. This facility was one of the largest syndicated transactions which was structured by SCBPL along with other Islamic Bank. In addition, the Bank was also the Joint Financial Advisors to the Government of Pakistan for the local currency Sukuk Program. Shariah Review Annual Shariah Review was carried out on a test check basis and Standard Agreements for Murabaha, Diminishing Musharakah, import and export finance along with the relevant supplemental documents including declarations, purchase invoices, description of assets and recovery of payments etc. were reviewed. The allocation of funds, weightages, profit sharing ratios, profits and losses relating to Mudarabah accounts and the overall Shariah compliance of the bank's operation and their alignment with the Shariah guidelines were also checked. As part of continuous improvement necessary recommendations and corrective measures were suggested. An action plan was agreed for the implementation of recommended changes and all issues identified were duly addressed by management.
12 Annual Report 2011 www.standardchartered.com.pk
Report of SCBPL Shariah Advisor

For the year ended December 31, 2011
Subject to the aforesaid, the affairs of SCBPL, were found to have been carried out in accordance with the rules and principles of Shariah including Fatawas of the Shariah Advisor and SBP regulations and guidelines related to Shariah compliance. Late Payment Charity During the year an amount of approximately Rs 4.377 million was transferred to the charity account and the same amount was disbursed after due approval of the Shariah Advisor. Training The year under review, SCBPL again paid attention on the development of Saadiq team and provided training to all stakeholders across the organization including senior management training which was recommended by Shariah advisor in the last Shariah review report. During the year under review a total of 21 sessions were held including Shariah specific and product related trainings. This includes an Islamic Banking certification program with the cooperation of Centre for Islamic Economics. The management maintains continuous emphasis on training as it is essential ingredient to ensure Shariah compliance of Saadiq products. Development & Progress In order to facilitate its customers and provide Islamic products & services to its customers, during the year, the following actions with the guidance of Shariah were taken by SCBPL: a) The bank has opened 36 dedicated Islamic windows in conventional branches across the network including Karachi, Lahore, Islamabad, Rawalpindi, Multan, Gujranwala and Sialkot with a dedicated Relationship Managers. b) The bank also hired new staff dedicated for Islamic Banking. c) In the continuation of the facilitation to the customers, the Bank first time, offered Islamic products & services to small & medium size enterprises (SME). d) As part of the improvement of Shariah compliance, the Shariah department has implemented a policy to help increase the percentage of direct payments in the overall protfolio of Murabahas. The objective is to gradually increase direct payments to the maximum level possible keeping in mind practical challenges faced by the industry. e) In the continuation of Islamic banking awareness program, the Bank also arranged engagement sessions with the clients. Recommendation 1- Direct payment to the supplier (in Murabahas) is an important Shariah requirement. The plan of shifting from indrect payment to direct payment to has been discussed with the management. The management should speed up the shifting process where the same is possible or follow the guideline defined in the circular of SBP in case of indirect payment. 2- Conventional insurance was allowed by Shariah scholars due to unavailability of Takaful (Islamic Insurance). However, currently Takaful business has been increasing graduallly and number of Takaful companies are available in Pakistan. The Bank should also focus on shifting its Islamic business from Conventional Insurance to Takaful (Islamic Insurance). 3- The management should continue their focus on increasing cross sell of complete Islamic product suite to new and existing customers and endeavor to convert their business into Islamic banking. May Allah Subhanah wa Ta'ala accept our endeavors and grant us Ikhlas to fulfill our responsibility towards Islamic banking which is very mingled between service of deen and service for ourselves.
Muhammad Abdul Mubeen Shariah Advisor Standard Chartered Bank (Pakistan) Ltd.
Review Report to the Members on Statement of Compliance With Best Practices of Code of Corporate Governance
We have reviewed the Statement of Compliance with the best practices contained in the Code of Corporate Governance prepared by the Board of Directors of Standard Chartered Bank (Pakistan) Limited to comply with listing regulations of the Karachi, Lahore and Islamabad Stock Exchanges where the Bank is listed. The responsibility for compliance with the Code of Corporate Governance is that of the Board of Directors of the Bank. Our responsibility is to review, to the extent where such compliance can be objectively verified, whether the Statement of Compliance reflects the status of the Bank's compliance with the provisions of the Code of Corporate Governance and report if it does not. A review is limited primarily to inquiries of the Bank personnel and review of various documents prepared by the Bank to comply with the Code. As part of our audit of financial statements we are required to obtain an understanding of the accounting and internal control systems sufficient to plan the audit and develop an effective audit approach. We have not carried out any special review of the internal control system to enable us to express an opinion as to whether the Board's statement on internal control covers all controls and the effectiveness of such internal controls. Further sub-regulation (xiii)(a) of Listing Regulations 35 notified by the Karachi Stock Exchange (Guarantee) Limited vide Circular No. KSE/N-269 dated 19 January 2009 requires the Company to place before the Board of Directors for their consideration and approval related party transactions distinguishing between transactions carried out on terms equivalent to those that prevail in arm's length transactions and transactions which are not executed at arm's length price recording proper justification for using such alternate pricing mechanism. Further, all such transactions are also required to be separately placed before the audit committee. We are only required and have ensured compliance of requirement to the extent of approval of related party transactions by the board of directors and placement of such transactions before the audit committee. We have not carried out any procedures to determine whether the related party transactions were undertaken at arm's length price or not. Based on our review, nothing has come to our attention which causes us to believe that the Statement of Compliance does not appropriately reflect the Bank's Compliance, in all material respects, with the best practices contained in the Code of Corporate Governance as applicable to the Bank for the year ended 31 December 2011.
Date: March 05, 2011 Karachi
KPMG Taseer Hadi & Co. Chartered Accountants Muhammad Taufiq
14
Annual Report 2011
Statement of Compliance with the Code of Corporate Governance

The Board of Directors of Standard Chartered Bank (Pakistan) Limited (Bank) supports and re-confirms its commitment to continued support and implementation of the highest standards of Corporate Governance at all times. The Securities and Exchange Commission of Pakistan (SECP) vide its letter #2(10)SE/SMD/202 dated March 28, 2002 has directed all the Stock Exchanges to fully adopt the Code of Corporate Governance (Code) in their listing regulations. In May 2002 the Stock Exchanges have formally incorporated this code in their listing rules. The Bank has applied the principles contained in the Code in the following manner: 1. The Bank encourages representation of non-executive (Independent) directors on its Board of Directors. The Board comprises of three Independent Non-Executive Directors (INEDs) and four Executive Directors as approved by State Bank of Pakistan. None of the directors of the Bank is serving as a director in more than ten listed companies, including this Company. All the resident directors of the Bank are registered as taxpayers and none of them has defaulted in payment of any loan to a banking company, a DFI or an NBFI or, being a member of a stock exchange, has been declared as a defaulter by that stock exchange. The Bank has prepared a 'Statement of Ethics and Business Practices', which has been approved by the Board and is signed by all the directors and employees of the Bank. The Board has developed and approved a vision/mission statement. The Board has also approved significant policies and adopted certain Standard Chartered Group policies as far as they are in accordance with the local laws and regulations. A complete record of particulars of significant policies has been maintained. All the powers of the Board have been duly exercised and decisions on material transactions, including appointment and determination of remuneration and terms and conditions of employment of the CEO have been taken by the Board. The meetings of the Board were presided over by the Chairman and, in his absence, by a director elected by the Board for this purpose. No casual vacancy has occurred on the Board during the financial year ended December 31, 2011. The Board of Directors have met six times in the year and notices of meetings, agendas and related papers are always endeavored to be circulated at least seven days before the meeting except in case where an emergent meeting is to be held. The minutes of the meetings were appropriately recorded and circulated. The Board has approved appointment of CFO, Head of Internal Audit and Company Secretary. The Board has also approved the remuneration and terms and conditions of employment of the CFO, Head of Internal Audit and Company Secretary as recommended by the CEO. The Board has formed an Audit Committee. The terms of reference of this Committee have been approved by the Board and advised to the Committee for compliance. Committee also ensures independence of the internal audit function and independence and objectivity of the External Auditors. The directors' report for this year has been prepared in compliance with the requirements of the Code and fully describes the salient matters required to be disclosed.
2. 3.
4.
5.
6.
7.
8. 9.
10.
11.
12.
Annual Report 2011
15
13. 14.
The financial statements of the Bank were duly endorsed by CEO and CFO before approval of the Board. The directors, CEO and executives do not hold any interest in the shares of the Bank other than that disclosed in the pattern of shareholding. All Directors are provided with an Orientation Pack on their appointment. During the period under review, INEDs have attended one workshop organized by PICG. Two INEDs have completed The Board Development Series (BDS) program offered by Pakistan Institute of Corporate Governance (PICG) in 2009 whereas one INED has completed certification in 2011. Remaining Directors will acquire certifications in due course of time. The Bank has complied with all the corporate and financial reporting requirements. The Audit Committee of the Board comprises of three members. Two Directors including the Chairman are INEDs and the other one is an Executive Director. The meetings of the Audit Committee are held at least once every quarter prior to approval of interim and final results of the Company and as required by the Code. The Board has set up an effective internal control (Audit) department. The Internal Control Department reports directly to the Chairman of the Board Audit Committee. The statutory auditors of the Bank have confirmed that they have been given a satisfactory rating under the quality control review program of the Institute of Chartered Accountants of Pakistan, that they or any of the partners of the firm, their spouses and minor children do not hold shares of the Bank and that the firm and all its partners are in compliance with International Federation of Accountants (IFAC) guidelines on code of ethics as adopted by Institute of Chartered Accountants of Pakistan. The statutory auditors or the persons associated with them have not been appointed to provide other services except in accordance with the listing regulations and the auditors have confirmed that they have observed IFAC guidelines in this regard. All material information as described in clause (xxiii) of the Code has been disseminated to the Stock Exchanges and Securities and Exchange Commission of Pakistan in a timely manner. The Bank has complied with the requirements as stipulated in clause 35 (xiii) (a) of the Listing Regulations relating to related party transactions. All other material principles contained in the Code have been complied with.
15.
16. 17.
18.
19.
20.
21.
22.
23.
24.
By Order of the Board
Mohsin Ali Nathani Chief Executive Officer
16
Annual Report 2011
Six Years Key Financial Data
Rupees in million Key Financial Data 2006 2007 2008 2009 2010 2011
Standard Chartered Bank (Pakistan) Limited
Revenue Operating Profit Profit before Tax Profit after Tax Net Mark-up Income before provision Non Mark-up Income Non Mark-up Expenses Shareholders Equity Total Assets Advances - net Investments - net Deposits Expense / Income Ratio Advances / Deposits Ratio Return on Equity Return on Assets
14,023 8,923 7,360 5,709 10,336 3,687 5,100 40,230 246,318 129,004 34,629 156,878 36% 82% 23.48% 3.19%
22,339 10,179 4,126 2,767 16,192 6,147 12,160 43,066 255,545 119,537 40,696 177,162 54% 67% 6.64% 1.10%
22,985 10,330 1,014 608 16,419 6,566 12,655 42,769 264,629 125,601 29,587 174,552 55% 72% 1.42% 0.23%
23,167 10,802 1,384 746 16,284 6,883 12,365 47,717 312,845 124,447 83,785 206,958 53% 60% 1.65% 0.26%
23,473 9,993 5,563 3,606 17,278 6,195 13,480 51,073 321,923 139,269 72,637 220,266 57% 63% 7.30% 1.14%
26,755 12,912 8,431 5,446 20,540 6,215 13,843 54,589 356,405 129,620 104,375 235,953 52% 55% 10.31% 1.61%
Annual Report 2011
17
Financial Statements
For the year ended 31 December 2011
Auditors' Report to the Members

We have audited the annexed unconsolidated statement of financial position of Standard Chartered Bank (Pakistan) Limited (the Bank) as at 31 December 2011 and the related unconsolidated profit and loss account, unconsolidated statement of comprehensive income, unconsolidated cash flow statement and unconsolidated statement of changes in equity together with the notes forming part thereof (herein-after referred to as the financial statements) for the year ended 31 December 2011, and we state that we have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit. It is the responsibility of the Banks Board of Directors to establish and maintain a system of internal control, and prepare and present the financial statements in conformity with the 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 about whether the financial statements are free of any material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting policies and significant estimates made by management, as well as, evaluating 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 loans and advances of the Bank, we report that: a) b) in our opinion, proper books of account have been kept by the Bank as required by the Companies Ordinance, 1984 (XLVII of 1984); in our opinion: i) the statement of financial position and the related 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 the accounting policies consistently applied; the expenditure incurred during the year was for the purpose of the Banks business; and 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;
ii) iii)
c)
in our opinion and to the best of our information and according to the explanations given to us, the unconsolidated statement of financial position, unconsolidated profit and loss account, unconsolidated statement of comprehensive income, unconsolidated cash flow statement and unconsolidated statement of changes in equity together with the notes forming part thereof conform with 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 Banks affairs as at 31 December 2011 and its true balance of profit, its cash flows and its changes in equity for the year then ended; and 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 section 7 of that Ordinance.
d)
Annual Report 2011
19
Un-Consolidated Statement of Financial Position

As at 31 December 2011
Note 2011 2010 -------- (Rupees in '000) ---------
ASSETS Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Operating fixed assets Intangible assets Deferred tax assets Other assets 4 5 6 7 8 9 10 11 12 26,293,094 3,054,167 20,205,971 104,375,499 129,620,134 6,435,158 26,412,571 2,729,730 37,278,550 356,404,874 24,087,842 821,931 30,421,885 72,637,401 139,269,413 6,601,893 26,681,268 3,393,322 18,008,022 321,922,977
LIABILITIES Bills payable Borrowings from financial institutions Deposits and other accounts Sub-ordinated loans Other liabilities 13 14 15 16 17 4,576,789 19,361,864 235,952,722 699,200 41,225,688 301,816,263 54,588,611 5,691,864 15,914,343 220,265,762 1,135,900 27,841,964 270,849,833 51,073,144
NET ASSETS REPRESENTED BY: Share capital Reserves Unappropriated profit 18 19
38,715,850 3,756,625 8,797,964 51,270,439 3,318,172 54,588,611
38,715,850 2,667,488 6,716,831 48,100,169 2,972,975 51,073,144
Surplus on revaluation of assets - net of deferred tax
20
CONTINGENCIES AND COMMITMENTS
21
The annexed notes 1 to 42 form an integral part of these un-consolidated financial statements.
Christos Papadopoulos Chairman
Mohsin Ali Nathani Chief Executive
Najam I. Chaudhri Director
Andrew J. Hardacre Director
20
Annual Report 2011
Financial statements and notes
Un-Consolidated Profit and Loss Account

Note 2011 2010 -------- (Rupees in '000) --------31,975,248 (11,435,212) 20,540,036 (4,421,525) 426,956 (486,608) (4,481,177) 16,058,859 27,958,232 (10,680,185) 17,278,047 (3,417,266) 690,035 (55,879) (1,648,084) (4,431,194) 12,846,853
Mark-up / return / interest earned Mark-up / return / interest expensed Net mark-up / return / interest income Provision against non-performing loans and advances Recovery of amounts written off Provision for diminution in the value of investments Bad debts written off directly Net mark-up / return / interest income after provisions NON MARK-UP / NON INTEREST INCOME Fees, commission and brokerage income Dividend income Income from dealing in foreign currencies Gain on sale of securities Unrealized gain on revaluation of investments classified as held for trading Other income Total non mark-up / non interest income NON MARK-UP / NON INTEREST EXPENSES Administrative expenses Other provisions / asset write-offs Other charges Total non mark-up / non interest expenses Extra-ordinary / unusual items PROFIT BEFORE TAXATION Taxation - current - prior years' - deferred
22 23
8.3 & 17.2 7.3 8.4.1
24 7.11 25
3,103,775 50,118 2,402,852 886,808 56,673 (285,153) 6,215,073 22,273,932 (13,240,121) (399,182) (203,927) (13,843,230) 8,430,702 8,430,702 (2,504,289) (480,727) (2,985,016) 5,445,686
3,443,215 30,317 1,733,428 814,537 81,601 92,384 6,195,482 19,042,335 (12,851,268) (455,394) (172,955) (13,479,617) 5,562,718 5,562,718 (1,168,652) 30,884 (819,335) (1,957,103) 3,605,615
26 27 28
29 PROFIT AFTER TAXATION
BASIC / DILUTED EARNINGS PER SHARE
30
------------- (Rupees) -------------1.41 0.93
Annual Report 2011
21
Un-Consolidated Statement of Comprehensive Income

2011 2010 -------- (Rupees in '000) --------Profit for the year Other comprehensive income: Surplus / (deficit) on revaluation of 'Available for Sale' financial assets Surplus / (deficit) on revaluation of fixed assets Actuarial gain / (loss) on defined benefit plans Deferred tax on actuarial gain / (loss) 5,445,686 3,605,615
(i) (ii)
(20,103) 7,036 (13,067) 5,432,619
2,169 (759) 1,410 3,607,025
Total comprehensive income for the year
(i) Surplus / deficit on revaluation of 'Available for Sale' securities-net of deferred tax is presented under a separate head below equity as 'surplus / deficit on revaluation of assets' in accordance with the requirements specified by the State Bank of Pakistan vide its BSD circular 20 dated 04 August 2000 and BSD circular 10 dated 13 July 2004. (ii) Surplus on revaluation of fixed assets-net of deferred tax is presented under a separate head below equity as 'surplus / deficit on revaluation of assets' in accordance with the requirements of section 235 of the Companies Ordinance, 1984.
22
Annual Report 2011
Un-Consolidated Cash Flow Statement

Note 2011 2010 -------- (Rupees in '000) --------8,430,702 (50,118) 8,380,584 433,196 268,697 (7,628) (56,673) 399,182 4,481,177 5,517,951 13,898,535 10,215,914 2,013,808 5,168,102 850,830 18,248,654 (1,115,075) 3,447,521 15,686,960 (3,065,965) 14,953,441 47,100,630 (6,455,947) 40,644,683 5,562,718 (30,317) 5,532,401 541,107 383,064 (9,797) (81,601) 455,394 55,879 2,369 4,375,315 5,721,730 11,254,131 (9,853,821) (640,772) (19,198,004) 1,397,105 (28,295,492) 847,226 167,017 13,307,812 (4,970,166) 9,351,889 (7,689,472) (2,280,511) (9,969,983)
CASH FLOW FROM OPERATING ACTIVITIES Profit before taxation Dividend income Adjustments for: Depreciation Amortization Gain on disposal of fixed assets Unrealized gain on revaluation of investments classified as held for trading Other provisions / asset write offs Provision for diminution in the value of investments Lease rentals expense Provision against loans and advances - net of recoveries
Decrease / (increase) in operating assets Lendings to financial institutions Held for trading securities Advances Other assets Increase / (decrease) in operating liabilities Bills payable Borrowings from financial institutions Deposits and other accounts Other liabilities Cash inflow/ (outflow) before taxation Income tax paid Net cash generated from / (used in) operating activities CASH FLOW FROM INVESTING ACTIVITIES Net investments Dividend income received Net investment in fixed assets (including intangible assets) Sale proceeds on disposal of fixed assets Net cash (used in) / generated from investing activities CASH FLOW FROM FINANCING ACTIVITIES Repayment of sub-ordinated Term Finance Certificates Dividend paid Payment of lease obligations Net cash used in financing activities Increase in cash and cash equivalents for the year Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year
(33,152,705) 50,118 (355,802) 7,771 (33,450,618)
11,659,901 30,317 (192,864) 12,139 11,509,493
31
(436,700) (2,319,877) (2,756,577) 4,437,488 24,909,773 29,347,261
(387,100) (2,369) (389,469) 1,150,041 23,759,732 24,909,773
Annual Report 2011
23
Un-Consolidated Statement of Changes in Equity

Share Capital Share Premium Statutory Reserve Unappropriated Profit
3,974,288
Total
-------------------------------- (Rupees in '000) ---------------------------------
Balance as at 31 December 2009 Total comprehensive income for the year Profit for the year Other comprehensive income Actuarial gain on defined plan - net of tax Transactions with owners, recorded directly in equity Share based payment transactions (Contribution from holding Company) Payment against share based payment transactions (to holding Company) Transfer to statutory reserve Transferred from surplus on revaluation of fixed asset - net of deferred tax Balance as at 31 December 2010 Total Comprehensive income for the year Profit for the year Other comprehensive income Actuarial gain on defined plan - net of tax Transactions with owners, recorded directly in equity Share based payment transactions (Contribution from holding Company) Payment against share based payment transactions (to holding Company) Transfer to statutory reserve Cash dividend (2010) Transferred from surplus on revaluation of fixed asset - net of deferred tax Balance as at 31 December 2011
38,715,850
1,036,090
910,275
44,636,503
3,605,615 1,410 3,607,025
3,605,615 1,410 3,607,025
38,715,850
1,036,090
721,123 1,631,398
47,733 (198,638) (150,905) (721,123) 7,546 6,716,831
47,733 (198,638) (150,905) 7,546 48,100,169
5,445,686 (13,067) 5,432,619
5,445,686 (13,067) 5,432,619
95,760
95,760
1,089,137 -
(42,588) 53,172 (1,089,137) (2,322,951)
(42,588) 53,172 (2,322,951)
38,715,850
1,036,090
2,720,535
7,430 8,797,964
7,430 51,270,439
24
Annual Report 2011
Notes to the Un-Consolidated Financial Statements

1. STATUS AND NATURE OF BUSINESS Standard Chartered Bank (Pakistan) Limited ("the Bank") was incorporated in Pakistan on 19 July 2006 and was granted approval for commencement of banking business by State Bank of Pakistan, with effect from 30 December 2006. The ultimate holding company of the Bank is Standard Chartered PLC, incorporated in England. The registered office is at Standard Chartered Bank Building, I.I. Chundrigar Road, Karachi. The Bank commenced formal operations on 30 December 2006 through amalgamation of entire undertaking of Union Bank Limited and the business carried on by the branches in Pakistan of Standard Chartered Bank, a bank incorporated by Royal Charter and existing under the laws of England. The scheme of amalgamation was sanctioned by State Bank of Pakistan vide its order dated 4 December 2006. The Bank is engaged in the banking business as defined in the Banking Companies Ordinance, 1962 and has a total number of 143 branches in Pakistan (2010: 162 branches in Pakistan) in operation at 31 December 2011. Standard Chartered Bank (Pakistan) Limited has the following three subsidiaries. All of them are incorporated in Pakistan. Standard Chartered Leasing Limited Standard Chartered Modaraba Standard Chartered Services of Pakistan (Private) Limited
These financial statements are separate financial statements of the Bank in which investments in subsidiaries are accounted for on the basis of direct equity interest rather than on the basis of reported results. Consolidated financial statements are presented separately. 2. 2.1 BASIS OF PREPARATION 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. One permissible form of trade related mode of financing comprises of purchase of goods by the Bank from its 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 financial statements as such but are restricted to the amount of facility actually utilised and the appropriate portion of mark-up thereon. 2.2 Statement of compliance These financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan (ICAP) as are notified under the Companies Ordinance, 1984, provisions of and directives issued under the Companies Ordinance, 1984 and Banking Companies Ordinance, 1962 and the directives issued by State Bank of Pakistan. In case the requirements differ, the provisions of and directives issued under the Companies Ordinance, 1984 and Banking Companies Ordinance, 1962 and the directives issued by the State Bank of Pakistan shall prevail. The Securities and Exchange Commission of Pakistan has approved and notified the adoption of International Accounting Standard 39, 'Financial Instruments: Recognition and Measurement' (IAS 39) and International Accounting Standard 40, 'Investment Property' (IAS 40). The requirements of these standards have not been followed in the preparation of these financial statements as the State Bank of Pakistan has deferred the implementation of these standards for banks in Pakistan till further instructions. However, investments have been classified and valued in accordance with the requirements of various circulars issued by the State Bank of Pakistan. 2.3 Basis of measurement These financial statements have been prepared under the historical cost convention, except that certain available for sale, trading and derivative financial instruments have been measured at fair value, whereas certain fixed assets are stated at revalued amounts less accumulated depreciation and accumulated impairment losses, where applicable. 2.4 Use of estimates and judgments The preparation of financial statements in conformity with approved accounting standards requires management to make judgments, estimates and assumptions that effect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Annual Report 2011
25

In particular, information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements are described in the following: 2.5 Note 8 Note 9 & 10 Note 10.2 Note 11 Note 21.6 Note 29 Note 33 Provision against non-performing advances Valuation and depreciation rates for fixed assets Goodwill impairment testing Deferred taxation Derivative instruments Income taxes Employees' retirement defined benefit plans
Functional and presentation currency These financial statements are presented in Pakistan Rupees, which is the Banks functional currency. Except as indicated, financial information presented in Pakistan Rupees has been rounded to the nearest thousand.
3.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been applied consistently to all years presented.
3.1
Business acquisitions Acquisitions from entities under common control Business combinations arising from transfers of interests in entities that are under the control of the shareholder that controls the Group are accounted for as if the acquisition had occurred at the beginning of the earliest comparative period presented. For this purpose comparatives are restated. The assets and liabilities acquired are recognised at the carrying amounts recognised previously in the combining entity's financial statements. Other acquisitions Other business combinations are accounted for using the acquisition method. For acquisition prior to 1 January 2009, the cost of acquisition is measured as the fair value of the asset given, equity instruments issued and the liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition. Identified assets acquired are fair valued at the acquisition date, irrespective of the extent of any minority interest. The excess of cost of acquisition over the fair value of identifiable net assets acquired is recorded as goodwill.
3.2
Cash and cash equivalents For the purposes of cash flow statement, cash and cash equivalents comprise of cash and balances with treasury banks and balances with other banks.
3.3
Investments The Bank classifies its investments as follows: a) Held for trading These are securities, which are acquired with the intention to trade by taking advantage of short term market / interest rate movements and are carried at market value. The surplus / deficit arising as a result of revaluation at market value is recognised in the profit and loss account. These securities are to be sold within 90 days from the date of their classification as 'Held for trading' under normal circumstances, in accordance with the requirements specified by BSD Circular 10 dated 13 July 2004 issued by the State Bank of Pakistan. b) Held to maturity These are securities with fixed or determinable payments and fixed maturity that are held with the intention and ability to hold to maturity. These are carried at amortised cost. c) Available for sale These are investments that do not fall under the held for trading or held to maturity categories and are carried at market value. The surplus / deficit arising as a result of revaluation at market value is kept in a separate account below equity.
26
Annual Report 2011

d) Subsidiaries Investments in subsidiaries are carried at cost less impairment in value, if any. All 'regular way' purchases and sales of investments are recognised on the trade date i.e. the date that the Bank commits to purchase or sell the asset. Regular way purchases or sales are purchases or sales of investments that require delivery of assets within the time frame generally established by regulation or convention in the market place. 3.4 Sale and repurchase agreements Securities sold subject to repurchase agreements ('repos') remain on the balance sheet; the counterparty liability is included in borrowings from financial institutions. Securities purchased under agreements to resell ('reverse repos') are recorded as lendings to financial institutions. The difference between sale and repurchase price is treated as interest / mark-up / return and accrued over the life of the underlying agreement using the effective interest method. 3.5 Advances Advances are stated net of provision against non-performing advances. Specific and general provisions are made based on an appraisal of the loan portfolio that takes into account Prudential Regulations issued by the State Bank of Pakistan from time to time. Specific provisions are made where the repayment of identified loans is in doubt and reflect an estimate of the amount of loss expected. The general provision is for the inherent risk of losses which, although not separately identified, are known from experience to be present in any loan portfolio. Provision made / reversed during the year is charged to the profit and loss account and accumulated provision is netted off against advances. Advances are written-off when there is no realistic prospect of recovery. When the Bank is the lessor in a lease agreement that transfers substantially all of the risks and rewards incidental to ownership of an asset to the lessee, the arrangement is presented within loans and advances. Murabaha financings are reflected as receivables at the sale price. Actual sale and purchase is not reflected as the goods are purchased by the customer as agent of the Bank and all documents relating to purchase are in customer's name. Funds disbursed under Murabaha financing arrangements for purchase of goods are recorded as "Advance Against Murabaha". In Diminishing Musharaka based financing, the Bank enters into a Musharaka based on Shirkat-ul-milk for financing an agreed share of fixed asset (e.g. house, land, plant or machinery) with its customers and enters into a periodic rental payment agreement for the utilization of the Bank's Musharaka share by the customer. 3.6 Operating fixed assets - tangible Owned Operating fixed assets, other than land and buildings, are stated at cost less accumulated depreciation and accumulated impairment losses thereon. Cost includes expenditure that is directly attributable to the acquisition of fixed assets. Land and buildings are stated at revalued amounts less accumulated depreciation. Subsequent costs are included in the asset's carrying amount or are recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Bank and the cost of the item can be measured reliably. All other repairs and maintenance expenditures are charged to profit and loss account during the financial period in which they are incurred. Land and buildings are revalued by independent professionally qualified valuer(s). Surplus arising on revaluation is credited to the 'surplus on revaluation of fixed assets' account (net of deferred tax). Under the provisions of the Companies Ordinance, 1984, deficit arising on revaluation of fixed assets is adjusted against the balance in the above-mentioned surplus account. The revaluation is carried out with sufficient regularity to ensure that the carrying amount does not differ materially from that which would have been determined using fair value at the balance sheet date. Accumulated depreciation on owned buildings, at the date of revaluation, is eliminated against the gross carrying amount of buildings. The net amount is then restated to the revalued amount. Surplus on revaluation of fixed assets (net of deferred tax) is transferred to unappropriated profit to the extent of incremental depreciation charged on related assets. Land is not depreciated. Depreciation on all other fixed assets is calculated using the straight line method to allocate their depreciable cost or revalued amount to their residual values over their estimated useful lives. The residual values and useful lives of fixed assets are reviewed, and adjusted (if appropriate) at each balance sheet date. Gains and losses on disposal of fixed assets are included in profit and loss account currently.
Annual Report 2011
27

Leased Fixed assets held under finance lease are stated at the lower of fair value of asset and present value of minimum lease payments at the inception of lease, less accumulated depreciation. Financial charges are allocated over the period of lease term so as to provide a constant periodic rate of financial charge on the outstanding liability. Depreciation is charged on the basis similar to owned assets. 3.7 Intangible assets Goodwill Goodwill represents the excess of cost of an acquisition over the fair value of the share of net identifiable assets acquired at the date of acquisition. Goodwill is tested annually for impairment and carried at cost less accumulated impairment. Computer software Acquired computer software licenses are capitalised on the basis of costs incurred to acquire and bring to use the specific software. These costs are amortised over their expected useful lives using the straight line method. Acquired intangibles in business combination Acquired intangibles in business combination that have finite lives are amortised over their economic useful life based on the manner that benefits of the relevant assets are consumed. 3.8 Impairment of non-financial assets The carrying amounts of the Banks non-financial assets, other than deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists then the assets recoverable amount is estimated. An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated pre-tax future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. 3.9 Staff retirement benefits Defined benefit plan The Bank operates approved funded pension and gratuity schemes for all its non-management employees, and a management pension scheme only for its existing pensioners. For defined benefit plans, the liability / asset recognised on the balance sheet is the present value of defined benefit obligation at the balance sheet date less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the "Projected Unit Credit Actuarial Cost Method". Actuarial gains and losses that arise are recognised in other comprehensive income in the period in which they arise. Past service costs are recognised immediately to the extent that benefits are vested and are otherwise recognised over the average period until benefits are vested on a straight line basis. Current service costs and any past service costs together with the expected return on plan assets less the effect of unwinding of discount on plan liabilities are charged to operating expenses. Defined contribution plan The Bank also operates a defined contribution gratuity scheme for all its management staff, and a provident fund scheme for all its permanent staff, contributing at 8.33 percent and 10 percent of basic salary respectively. 3.10 Foreign currency transactions Transactions in foreign currencies are translated to Pakistan Rupees at exchange rates prevailing at the date of transaction. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to Pakistan Rupees at the exchange rate prevailing at that reporting date. Foreign currency differences arising on retranslation are recognised in profit or loss.
28
Annual Report 2011

3.11 Taxation Income tax expense comprises of current and deferred tax. Income tax expense is recognised in the profit and loss account except to the extent that it relates to items recognised directly in equity or in other comprehensive income. Current tax Current tax is the expected tax payable on the taxable income for the year (using tax rates enacted or substantively enacted at the balance sheet date), and any adjustment to tax payable in respect of previous years. Deferred tax Deferred tax is provided for using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised on temporary differences relating to: (i) the initial recognition of goodwill; (ii) the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit; and (iii) differences relating to investments in subsidiaries to the extent that they probably will not reverse in the foreseeable future. Deferred tax is measured at tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. 3.12 Revenue recognition Mark-up / return on advances and investments is recognised on an accrual basis using the effective interest rate method. The effective interest rate is the rate that exactly discounts the estimated future cash payments and receipts through the expected life of the financial asset or liability (or, where appropriate, a shorter period) to the carrying amount of the financial asset or liability. Mark-up recoverable on classified loans, advances and investments is recognised on a receipt basis in accordance with the requirements of Prudential Regulations issued by the State Bank of Pakistan. Mark-up on rescheduled / restructured loans, advances and investments is also recognised in accordance with the requirements of these Prudential Regulations. Fees and commission income are generally recognised on an accrual basis when the service has been provided. Fees and commission which in substance amount to an additional interest charge, are recognised over the life of the underlying transaction on a level yield basis. Dividend income is recognised when the right to receive income is established. The revenue from award credits for loyalty points earned on use of various products of the Bank is measured by reference to their fair value and is recognised when award credits are redeemed. Murabaha transactions are reflected as receivable. Actual sale and purchase are not reflected as the goods are purchased by the customer as agent of the Bank. Profit on the sales revenue due for payment is deferred by recording credit to 'Deferred Murabaha Income' account. 3.13 Derivative financial instruments Derivative financial instruments are initially recognised at fair value and are subsequently remeasured at fair value. All derivative financial instruments are carried as assets when fair value is positive and liabilities when fair value is negative. Any change in the fair value of derivative financial instruments is taken to profit and loss account. 3.14 Provisions Provisions for restructuring costs and legal claims are recognised when: (i) the Bank has a present legal or constructive obligation as a result of past events; (ii) it is more likely than not that an outflow of resources will be required to settle the obligation; and (iii) the amount has been reliably estimated.
Annual Report 2011
29

3.15 Fiduciary activities The Bank commonly acts in fiduciary capacities that result in the holding or placing of assets on behalf of individuals, trusts, retirement benefit plans and other institutions. These assets and income arising thereon are excluded from these financial statements, as they are not assets of the Bank. 3.16 Segment reporting A segment is a distinguishable component of the Bank that is engaged either in providing products or services (business segment), or in providing products or services within a particular economic environment (geographical segment), which is subject to risks and rewards that are different from those of other segments. The Banks primary format for segment reporting is based on business segments. A brief description of the products and services offered by different segments of the Bank is given in note 37 to these financial statements. 3.17 Offsetting Financial assets and liabilities are set off and the net amount presented in the balance sheet when, and only when, the Bank has a legal right to set off the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. 3.18 Subordinated liabilities Subordinated liabilities are initially measured at fair value plus transaction costs, and subsequently measured at their amortised cost using the effective interest method. 3.19 Non-current assets and disposal groups held for sale Non-current assets and disposal groups comprising of assets and liabilities that are expected to be recovered primarily through sale rather than continuing use are classified as held for sale. Immediately before being classified as held for sale, the assets and components of disposal group are remeasured in accordance with the Bank's accounting policies. Thereafter, the assets and disposal group are measured at the lower of their carrying values and fair values less cost to sell. 3.20 Share-based compensation The Group operates various share-based compensation plans which are accounted for as equity settled share based payment transactions, regardless of inter group repayment arrangements. The cost for such share based payment transactions is determined by reference to the fair value of options at the grant date. The fair value is determined based on the market price or using an appropriate valuation technique. The cost is charged to profit and loss account and credited to equity as a contribution from parent. The liability for these transactions which is based on the fair value of these options at the settlement date is settled through debiting equity. 3.21 New standards and interpretations not yet adopted The following standards, amendments and interpretations of approved accounting standards will be effective for accounting periods beginning on or after 01 January 2012: Amendments to IAS 12 deferred tax on investment property (effective for annual periods beginning on or after 1 January 2012). The 2010 amendment provides an exception to the measurement principle in respect of investment property measured using the fair value model in accordance with IAS 40 Investment Property. The measurement of deferred tax assets and liabilities, in this limited circumstance, is based on a rebuttable presumption that the carrying amount of the investment property will be recovered entirely through sale. The presumption can be rebutted only if the investment property is depreciable and held within a business model whose objective is to consume substantially all of the assets economic benefits over the life of the asset. The amendment has no impact on financial statements of the Bank. IAS 27 Separate Financial Statements (2011) - (effective for annual periods beginning on or after 1 January 2013). IAS 27 (2011) supersedes IAS 27 (2008). Three new standards IFRS 10 - Consolidated Financial Statements, IFRS 11- Joint Arrangements and IFRS 12- Disclosure of Interest in Other Entities dealing with IAS 27 would be applicable effective 1 January 2013. IAS 27 (2011) carries forward the existing accounting and disclosure requirements for separate financial statements, with some minor clarifications. The amendments have no impact on financial statements of the Bank. IAS 28 Investments in Associates and Joint Ventures (2011) - (effective for annual periods beginning on or after 1 January 2013). IAS 28 (2011) supersedes IAS 28 (2008). IAS 28 (2011) makes the amendments to apply IFRS 5 to an investment, or a portion of an investment, in an associate or a joint venture that meets the criteria to be classified as held for sale; and on cessation of significant influence or joint control, even if an investment in an associate becomes an investment in a joint venture. The amendments have no impact on financial statements of the Bank.
30
Annual Report 2011

IAS 19 Employee Benefits (amended 2011) - (effective for annual periods beginning on or after 1 January 2013). The amended IAS 19 includes the amendments that require actuarial gains and losses to be recognised immediately in other comprehensive income; this change will remove the corridor method and eliminate the ability for entities to recognise all changes in the defined benefit obligation and in plan assets in profit or loss, which currently is allowed under IAS 19; and that the expected return on plan assets recognised in profit or loss is calculated based on the rate used to discount the defined benefit obligation. The amendment has no impact on financial statements of the Bank. Presentation of Items of Other Comprehensive Income (Amendments to IAS 1) - (effective for annual periods beginning on or after 1 July 2012). The amendments require that an entity present separately the items of other comprehensive income that would be reclassified to profit or loss in the future if certain conditions are met from those that would never be reclassified to profit or loss. The amendments do not address which items are presented in other comprehensive income or which items need to be reclassified. The requirements of other IFRSs continue to apply in this regard. The amendments have no impact on financial statements of the Bank. Disclosures Transfers of Financial Assets (Amendments to IFRS 7) - (effective for annual periods beginning on or after 1 July 2011). The amendments introduce new disclosure requirements about transfers of financial assets, including disclosures for financial assets that are not derecognised in their entirety; and financial assets that are derecognised in their entirety but for which the entity retains continuing involvement. The amendments have no impact on financial statements of the Bank. Offsetting Financial Assets and Financial Liabilities (Amendments to IAS 32) (effective for annual periods beginning on or after 1 January 2014). The amendments address inconsistencies in current practice when applying the offsetting criteria in IAS 32 Financial Instruments: Presentation. The amendments clarify the meaning of currently has a legally enforceable right of set-off; and that some gross settlement systems may be considered equivalent to net settlement. The amendments have no impact on financial statements of the Bank. Offsetting Financial Assets and Financial Liabilities (Amendments to IFRS 7) (effective for annual periods beginning on or after 1 January 2013). The amendments to IFRS 7 contain new disclosure requirements for financial assets and liabilities that are offset in the statement of financial position or subject to master netting agreement or similar arrangement. The amendments have no impact on financial statements of the Bank. IFRIC 20 - Stripping cost in the production phase of a surface mining (effective for annual periods beginning on or after 1 January 2013). The interpretation requires production stripping cost in a surface mine to be capitalized if certain criteria are met. The amendments have no impact on financial statements of the Bank.
Note 4. CASH AND BALANCES WITH TREASURY In hand - Local currency - Foreign currencies With State Bank of Pakistan in: - Local currency current account - Local currency current account-Islamic Banking - Foreign currency deposit account Cash reserve account (5% of FE 25) Special cash reserve account (15% of FE 25) Local US Dollar collection account With National Bank of Pakistan in: - Local currency current account
2011 2010 -------- (Rupees in '000) ---------
4.1
2,410,531 1,180,606
2,306,311 921,596
11,432,125 779,147 2,518,300 7,036,227 28,689
10,219,015 557,362 2,278,108 6,827,499 19,083
907,469 26,293,094
958,868 24,087,842
4.1
This includes National Prize Bonds of Rs. 5.148 million (2010: Rs. 4.382 million).
Annual Report 2011
31

Note
2011 2010 -------- (Rupees in '000) ---------
5.
BALANCES WITH OTHER BANKS In Pakistan - In current accounts Outside Pakistan - In current accounts
10,751
23,829
5.1
3,043,416 3,054,167
798,102 821,931
5.1
This includes balances of Rs.2,986.847 million (2010: Rs. 758.120 million) held with other branches and subsidiaries of Standard Chartered Group outside Pakistan.
6.
LENDINGS TO FINANCIAL INSTITUTIONS Call money lendings Repurchase agreement lendings (Reverse Repo) Placements 500,000 9,351,574 10,354,397 20,205,971 6,457,638 23,964,247 30,421,885
6.1 6.2
6.1
These carry mark-up at rates ranging from 11.75 percent to 11.85 percent per annum (2010: 12.3 percent to 13.8 percent per annum) payable at maturity, and are due to mature by January 2012. These arrangements are governed under Master Repurchase Agreements. This represents placements with other branches and subsidiaries of Standard Chartered Group outside Pakistan at markup rates ranging from 0.15 percent to 0.45 percent per annum (2010: 0.15 percent and 1.22 percent per annum), and are due to mature by January 2012. 2011 2010 -------- (Rupees in '000) --------Particulars of lending In local currency In foreign currencies 9,851,574 10,354,397 20,205,971 6,457,638 23,964,247 30,421,885
6.2
6.3
6.4
Securities held as collateral against lendings to financial institutions 2011 Further given as collateral 2010 Further given as collateral
Held by bank
Total
Held by bank
Total
----------------------------------- (Rupees in '000) -----------------------------------Market Treasury Bills Pakistan Investment Bonds 9,351,574 9,351,574 5,307,638 5,307,638
9,351,574
9,351,574
1,150,000 6,457,638
1,150,000 6,457,638
6.4.1 The market value of securities held as collateral against lendings to financial institutions amounted to Rs. 9,389.849 million (2010: Rs. 6,360.864 million).
32
Annual Report 2011

7. 7.1 INVESTMENTS Investments by type
Note Held for trading Market Treasury Bills Pakistan Investment Bonds Available for sale Market Treasury Bills Pakistan Investment Bonds Ordinary shares of listed companies Units / certificates of mutual funds Ordinary shares of unlisted companies Sukuk and Ijarah Bonds Subsidiaries Standard Chartered Services of Pakistan (Private) Limited Standard Chartered Modaraba Standard Chartered Leasing Limited Investments at amortised cost Provision for diminution in the value of investments Investments (net of provisions) Surplus on revaluation of held for trading securities - net (Deficit) / surplus on revaluation of available for sale securities - net Total investments 2011 2010
Held by bank
Given as collateral
Total
Held by bank
Given as collateral
Total
----------------------------------- (Rupees in '000) -----------------------------------5,607,171 473,372 5,607,171 473,372 7,932,763 161,588 7,932,763 161,588
7.6 7.6 7.7 7.8 7.9 7.10 7.12
75,169,692 14,908,368 86,987 5,925,000
1,792,417 18,904 -
76,962,109 14,927,272 86,987 5,925,000
50,579,193 10,356,924 86,987 3,625,000
18,958 -
50,579,193 10,375,882 86,987 3,625,000
44,500 42,000 730,589 102,987,679 7.3 (133,157) 102,854,522 56,673 (345,647) 102,565,548
44,500 42,000 730,589 1,811,321 104,799,000
44,500 42,000 730,589 73,559,544
18,958 18,958 -
44,500 42,000 730,589 73,578,502 (133,157) 73,445,345 81,601
(133,157) (133,157) 1,811,321 104,665,843 73,426,387 56,673 81,601
7.11
(1,370) (347,017) (886,824) 1,809,951 104,375,499 72,621,164
(2,721) (889,545) 16,237 72,637,401
Note 7.2 Investments by segment Federal Government Securities Market Treasury Bills Pakistan Investment Bonds Fully paid up ordinary shares Listed companies Unlisted companies Investment in subsidiaries Standard Chartered Services of Pakistan (Private) Limited Standard Chartered Modaraba Standard Chartered Leasing Limited Bonds and Term Finance Certificates Sukuk and Ijarah Bonds Total investment at amortised cost Provision for diminution in the value of investments Surplus on revaluation of held for trading securities - net Deficit on revaluation of available for sale securities - net Total investments 7.3 Particulars of provision for diminution in the value of investments Opening balance Charge for the year Reversals Net charge Closing balance 7.3.1 The details of provision held against investments are as follows: Ordinary shares of unlisted companies - available for sale Subsidiaries 7.12
2011 2010 -------- (Rupees in '000) --------82,569,280 15,400,644 86,987 44,500 42,000 730,589 5,925,000 104,799,000 (133,157) 104,665,843 56,673 (347,017) 104,375,499 58,511,956 10,537,470 86,987 44,500 42,000 730,589 3,625,000 73,578,502 (133,157) 73,445,345 81,601 (889,545) 72,637,401
7.3.1
133,157 133,157
77,278 55,879 55,879 133,157
2,341 130,816 133,157
2,341 130,816 133,157

Annual Report 2011 33

For the year ended 31 December 2011 7.4 Investments include securities having book value of Rs. 18.904 million (2010: Rs. 18.958 million) pledged with the State Bank of Pakistan as security to facilitate T.T. discounting facility to the Bank, including an amount earmarked against the facilities allocated to branches now in Bangladesh. Market Treasury Bills and Pakistan Investment Bonds are eligible for discounting with the State Bank of Pakistan.
2011 2010
7.5
Rating Quality of 'Available for Sale' securities

7.6 Federal Government Securities Market Treasury Bills Pakistan Investment Bonds 7.7 Particulars of shares held - listed Unrated Unrated
Cost
Market value
Rating
Cost
Market value
------------ (Rupees in '000) ------------- ------------ (Rupees in '000) -------------
76,962,109 14,927,272 91,889,381
77,050,046 14,493,242 91,543,288
Unrated 50,579,193 Unrated 10,375,882 60,955,075
50,544,997 9,520,186 60,065,183
2011
2010
2011
2010 Rating Cost
(Number of shares)
Market value
Rating
Cost
Market value
------------ (Rupees in '000) ------------- ------------ (Rupees in '000) ------------7,500 2,800 11,000 4,800 3,500 7,500 2,800 11,000 4,800 3,500 Sakrand Sugar Mills Limited Bawany Sugar Mills Limited Dadabhoy Cement Limited Khurshid Spinning Mills Taj Textile Mills Limited Unrated Unrated Unrated Unrated Unrated 17 33 50 Unrated Unrated Unrated Unrated Unrated 22 22
All shares are ordinary shares of Rs. 10 each except otherwise mentioned. 7.8 Particulars of units / certificates held in mutual funds 2011 2010
2011
2010 Rating Cost
(Number of units)
Market value
Rating
Cost
Market value
------------ (Rupees in '000) ------------- ------------ (Rupees in '000) ------------13,788 13,788 National Investment (Unit) Trust Unrated 358 358 Unrated 433 433
7.9
Particulars of shares held - unlisted
2011
2010
2011
Rating Khushali Bank Limited Ordinary Shares of Rs. 10 each Chief Executive: M. Ghalib Nishtar Pakistan Export Finance Guarantee Agency Limited Chairman : Mr Muneer Kamal Society for Worldwide Interbank Fund Transfer Provision for diminution in the value - note 7.3.1 A/A-1
2010
2011
2010
(Number of shares) 8,000,000 8,000,000
(Rupees in '000) A-/A-2 83,088 83,088
573,769
573,769
Unrated
Unrated
3,004
3,004
Unrated
Unrated
895 86,987 (2,341) 84,646
895 86,987 (2,341) 84,646
34
Annual Report 2011

2011 2010
Rating
Note 7.10 Bonds and Term Finance Certificates Wapda Sukuk Bonds Pakistan International Airlines (PIA) Sukuk Bonds GoP Ijarah Sukuk Bonds 7.10.1 7.10.2 7.10.3
Cost
Market value
Rating
Cost
Market value
------------ (Rupees in '000) ------------- ------------ (Rupees in '000) ------------Unrated Unrated Unrated 300,000 1,325,000 4,300,000 5,925,000 287,551 1,325,000 4,311,117 5,923,668 Unrated Unrated Unrated 300,000 1,325,000 2,000,000 3,625,000 300,000 1,325,000 1,999,892 3,624,892
7.10.1 Wapda Sukuk Bonds carry mark-up rates of 0.25% below 6 months KIBOR. The principal and profit is payable semi-annually with final maturity in July 2017. 7.10.2 PIA Sukuk bonds carry mark-up rates of 1.75% above 6 months KIBOR. The principal and profit is payable semi-annually with final maturity in October 2012. 7.10.3 GoP Ijarah Sukuk Bonds carry mark-up rates of weighted average yield of 6 months Treasury Bills. The profit is payable semi-annually with principal redemption at maturity falling due between December 2013 and December 2014 for the various issues held by the Bank. 2011 7.11 Unrealized gain / (loss) on revaluation of investments classified as held for trading Market Treasury Bills Pakistan Investment Bonds 7.12 Investment in Subsidiaries 2010
----- (Rupees in '000) ----59,984 (3,311) 56,673 83,842 (2,241) 81,601
2011
4,450,000
2010
4,450,000 Standard Chartered Services of Pakistan (Pvt) Limited - 100% owned Standard Chartered Modaraba - Listed 20% owned Standard Chartered Leasing Limited - Listed 86.45% owned Provision for diminution in the value - note 7.12.4 & 7.3.1
2011
2010
(Number of shares)
----- (Rupees in '000) ----44,500 42,000 730,589 44,500 42,000 730,589
4,538,353 4,538,353 84,579,276 84,579,276
(130,816) 686,273
(130,816) 686,273
7.12.1 The above investments in subsidiaries are strategic investments of the Bank. 7.12.2 Standard Chartered Services of Pakistan (Private) Limited (100% owned by the Bank) exercises control over Standard Chartered Modaraba as its management company and also has a direct economic interest of 10 percent. Therefore, Standard Chartered Modaraba is considered a subsidiary of the Bank. 7.12.3 The market value of investments in listed subsidiaries, namely, Standard Chartered Modaraba and Standard Chartered Leasing Limited at 31 December 2011 amounted to Rs 46.972 million and Rs 253.738 million respectively (2010: Rs 42.252 million and 240.205 million respectively). 7.12.4 The Bank periodically reviews its investment in Standard Chartered Leasing Limited (SCLL) for evidence of any impairment. The recoverable amount of investment in SCLL is determined with reference to its value in use. The Bank uses present value techniques and financial projections of SCLL to calculate its value in use. The recoverable amount as at 31st December 2011 is estimated to be above the carrying value of Rs. 599.773 million. Based on these calculations, the Bank considers that no additional impairment loss has arisen during the year. Hence, the Bank continues to hold an accumulated impairment loss of Rs.130.82 million from last year.
Annual Report 2011
35

Note
8. ADVANCES Loans, cash credits, running finances, etc. - In Pakistan - Outside Pakistan Net investment in Finance Lease - In Pakistan - Outside Pakistan
2011 2010 -------- (Rupees in '000) --------137,201,988 137,201,988 147,338,159 147,338,159 -
Bills discounted and purchased (excluding treasury bills) - Payable in Pakistan - Payable outside Pakistan Advances - gross Provision for non-performing advances Advances - net of provision 8.1 8.1.1 Particulars of advances In local currency In foreign currencies
8.3
6,224,555 8,183,008 14,407,563 151,609,551 (21,989,417) 129,620,134
3,133,517 7,434,767 10,568,284 157,906,443 (18,637,030) 139,269,413
115,567,167 14,052,967 129,620,134 100,516,647 29,103,487 129,620,134
128,139,462 11,129,951 139,269,413 95,791,758 43,477,655 139,269,413
8.1.2
Short term (for upto one year) Long term (for over one year)
8.2
Advances include Rs 25,696.862 million (31 December 2010: Rs 22,107.709 million) which have been placed under non-performing status as detailed below:
2011 Classified Advances

Domestic Overseas
Category of classification Substandard Doubtful Loss
Provision Required
Domestic Overseas Total
Provision Held
Total
--------------------------------------------------- (Rupees in '000) ------------------------------------------------1,690,949 3,296,540 20,709,373 25,696,862 25,696,862 1,690,949 3,296,540 20,709,373 25,696,862 25,696,862 350,883 1,506,748 19,518,689 21,376,320 613,097 21,989,417 350,883 1,506,748 19,518,689 21,376,320 613,097 21,989,417 350,883 1,506,748 19,518,689 21,376,320 613,097 21,989,417 350,883 1,506,748 19,518,689 21,376,320 613,097 21,989,417
General provision

Domestic Overseas
Category of classification Substandard Doubtful Loss
Provision Required
Provision Held
Total
--------------------------------------------------- (Rupees in '000) ------------------------------------------------2,113,942 2,141,058 17,852,709 22,107,709 22,107,709 2,113,942 2,141,058 17,852,709 22,107,709 22,107,709 369,798 991,601 16,609,886 17,971,285 665,745 18,637,030 369,798 991,601 16,609,886 17,971,285 665,745 18,637,030 369,798 991,601 16,609,886 17,971,285 665,745 18,637,030 369,798 991,601 16,609,886 17,971,285 665,745 18,637,030
General provision
8.2.1
At 31 December 2011, the provision requirement has been reduced by Rs. 1,378.368 million (31 December 2010: Rs. 1,334.357 million) being benefit of Forced Sale Value (FSV) of commercial, residential and industrial properties (land and building only) held as collateral, in accordance with the requirements of State Bank of Pakistan Prudential Regulations (PR) and SBP Circular 1 dated 21 October 2011. Had the said benefit been taken in accordance with the requirements of PR and previous SBP Circular 10 dated 20 October 2009, profit for the year before taxation would have been lower by Rs. 161.426 million. Increase in accumulated profits amounting to Rs. 895.939 million due to the said FSV benefit is not available for distribution of cash and stock dividend.
36
Annual Report 2011

8.3 Particulars of provision against non-performing advances
2011 2010
Specific
Opening balance Charge for the year Reversals
General
Total
Specific
General
Total
----------------------------------- (Rupees in '000) -----------------------------------17,971,285 665,745 18,637,030 15,485,633 1,298,005 16,783,638 5,673,215 (1,237,938) 4,435,277 (868,917) (161,325) 21,376,320 197,087 (249,735) (52,648) 613,097 5,870,302 (1,487,673) 4,382,629 8,234,580 (4,182,001) 4,052,579 1,252,382 (1,884,642) (632,260) 665,745 9,486,962 (6,066,643) 3,420,319 (1,330,264) (236,663) 18,637,030
Amounts written off Other movements Closing balance
(868,917) (1,330,264) (161,325) (236,663) 21,989,417 17,971,285
Note 8.4 8.4.1 Particulars of write offs Against provisions Charged and written off during the year Write-offs of Rs. 500,000 and above Write-offs of below Rs. 500,000 Details of loans written-off of Rs. 500,000 and above 10.3
2011 2010 -------- (Rupees in '000) --------868,917 486,608 1,355,525 465,954 889,571 1,355,525 1,330,264 1,648,084 2,978,348 1,768,480 1,209,868 2,978,348
8.4.2 8.5
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(s) during the year ended 31 December 2011 is given in Annexure 1. 8.6 Particulars of loans and advances to directors, associated companies, etc. (i) Debts due by directors, executives or officers of the Bank or any of them either severally or jointly with any other persons Balance at beginning of the year Loans granted during the year Repayments Balance at end of the year (ii) 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 Balance at beginning of the year Loans granted during the year Repayments Balance at end of the year (iii) Debts due by subsidiary companies, controlled firms, managed modarabas and other related parties Balance at beginning of the year Loans granted during the year Repayments Balance at end of the year 9. OPERATING FIXED ASSETS Capital work-in-progress Property and equipment 9.1 Capital work-in-progress Civil works Advance payment towards property and equipment Consultants' fee and other charges 3,815 77,891 733 82,439
Note
2011 2010 -------- (Rupees in '000) ---------
2,924,018 1,152,452 (1,849,672) 2,226,798
2,764,858 965,532 (806,372) 2,924,018
117,187 287,360 (213,247) 191,300
217,653 3,554,559 (3,655,025) 117,187
9.1 9.2
82,439 6,352,719 6,435,158
9,059 6,592,834 6,601,893
2,387 6,252 420 9,059


9.2 Property and equipment
Land and buildings on freehold land Leased hold improvements
2011
Furniture, fixtures and office equipment Vehicles Total
Cost / Valuations At 1 January 2011 Additions during the year Transfers / write offs Deletions At 31 December 2011 Depreciation At 1 January 2011 Charge for the year Transfers / write offs Deletions At 31 December 2011 Net book value Rate of depreciation
--------------------------- (Rupees in '000) ---------------------------5,402,148 1,392,223 3,235,716 67,028 10,097,115 16,386 9,966 253,064 3,006 282,422 (121,540) (18,257) (139,797) (39,621) (4,157) (43,778) 5,418,534 1,280,649 3,430,902 65,877 10,195,962 97,956 99,145 197,101 5,221,433 602,139 74,191 (34,938) 641,392 639,257 2,743,557 255,388 (15,661) (39,521) 2,943,763 487,139 60,629 4,472 (4,114) 60,987 4,890 3,504,281 433,196 (50,599) (43,635) 3,843,243 6,352,719
6.67% 6.67%-10% 14.28% - 33.33% 33.33% 2010

Land and buildings on freehold land Leased hold improvements Furniture, fixtures and office equipment Vehicles Total
--------------------------- (Rupees in '000) ---------------------------Cost / Valuations At 1 January 2010 Additions during the year Transfers / write offs Deletions At 31 December 2010 Depreciation At 1 January 2010 Charge for the year Transfers / write offs Deletions At 31 December 2010 Net book value Rate of depreciation 9.3 5,315,577 82,010 4,561 5,402,148 95,349 2,607 97,956 5,304,192 1,389,895 24,936 (17,888) (4,720) 1,392,223 541,294 77,473 (12,856) (3,772) 602,139 790,084 3,391,346 107,013 (197,797) (64,846) 3,235,716 2,654,863 347,831 (195,261) (63,876) 2,743,557 492,159 76,071 10,172,889 503 214,462 (211,124) (9,546) (79,112) 67,028 10,097,115 49,297 20,454 (9,122) 60,629 6,399 3,245,454 541,107 (205,510) (76,770) 3,504,281 6,592,834
6.67% 6.67%-10% 14.28% - 33.33% 33.33%
The Bank's owned land and buildings were revalued by an independent accredited professional valuer, Iqbal A. Nanjee & Co. (Private) Limited. The valuation performed by the valuer was based on active market prices, adjusted for any difference in the nature, location or condition of the specific land and building. The date of revaluation was 31 December 2009. The revaluation resulted in a net surplus of Rs. 3,599.739 million over the book value. If the owned land and buildings were measured using the cost model, the carrying amounts would have been as follows:
2011 2010 -------- (Rupees in '000) --------Cost Accumulated depreciation Carrying amount 2,268,407 (623,673) 1,644,734 2,252,021 (535,959) 1,716,062
The movement in surplus on revaluation of fixed assets is given in note 20.1 to the financial statements. 9.4 As at 31 December 2011, the cost of fully depreciated property and equipment still in use amounted to Rs 2,848.861 million (2010: Rs. 2,518.206 million). Depreciation rates for furniture, fixtures and office equipment are as follows: Furniture and fixtures Printers Other office equipment Computer equipment ATM machines
9.5
33.33 33.33 20.00 33.33 14.28
percent percent percent percent percent

9.6 Details of disposal of fixed assets whose original cost or book value exceeds Rs. 1 million or Rs 250,000, which ever is less, and assets disposed of to the Chief Executive or to a director or to executives or to a shareholder holding not less than 10% of the voting shares of the Bank or to any related party, irrespective of value, are given below:
Particulars Cost Accumulated depreciation Book value Sale Proceeds Gain / (Loss) on Sale Mode of Disposal Particulars of Purchaser
----------------------------------------- (Rupees in '000) ----------------------------------------
Furniture, fixtures and office equipment
14,781 2,627 8,086 3,575 3,406 1,269 1,122 34,866
14,781 2,578 8,086 3,575 3,406 1,269 1,122 34,817
49 49
2,012 88 1,722 57 898 173 339 5,289
2,012 39 1,722 57 898 173 339 5,240
Tender Tender Tender Tender Tender Tender Tender
M/S Ilyas Hussain Soomro M/S Muhammad Hashim & Sons M/S National Traders M/S Aslam Soomro M/S National Traders M/S Mohammad Ibrahim Osman Soomro M/S Farhan & Company
Items having book value of less than Rs. 250,000 and cost of less than Rs. 1,000,000: Furniture, fixtures and office equipment Vehicles Total 4,755 4,157 43,778 4,704 4,114 43,635 51 43 143 701 1,781 7,771 650 1,738 7,628
10.
INTANGIBLE ASSETS
2011
Goodwill Core deposits intangible Customer relationships intangible Brand names Computer Software Total
Cost At 1 January 2011 Additions during the year At 31 December 2011 Depreciation At 1 January 2011 Charge for the year At 31 December 2011 Net book value Rate of amortisation
----------------------------------------- (Rupees in '000) -----------------------------------------26,095,310 26,095,310 26,095,310 1,982,413 1,982,413 1,761,348 162,924 1,924,272 58,141 774,680 774,680 681,430 39,350 720,780 53,900 389,400 389,400 168,933 38,932 207,865 181,535 338,350 338,350 287,174 27,491 314,665 23,685 20% 29,580,153 29,580,153 2,898,885 268,697 3,167,582 26,412,571
2010
Cost At 1 January 2010 Additions during the year Transfers / write offs At 31 December 2010 Depreciation At 1 January 2010 Charge for the year Transfers / write offs At 31 December 2010 Net book value Rate of amortisation
----------------------------------------- (Rupees in '000) -----------------------------------------26,095,310 26,095,310 26,095,310 1,982,413 1,982,413 1,521,572 239,776 1,761,348 221,065 774,680 774,680 609,335 72,095 681,430 93,250 389,400 389,400 129,998 38,935 168,933 220,467 300,190 38,160 338,350 254,916 32,258 287,174 51,176 20% 29,541,993 38,160 29,580,153 2,515,821 383,064 2,898,885 26,681,268
10.1 10.2
As at 31 December 2011, the gross carrying amount of fully amortised intangible assets (computer software) still in use amounted to Rs.240.381 million (2010: Rs. 204.529 million). The recoverable amount for the purpose of assessing impairment on goodwill on acquisition of Union Bank Limited was based on value in use. The calculations are based on the 2012 budget and forecasts for subsequent three years as approved by the management. These have then been extrapolated for a further period of 16 years using a steady long term forecast GDP growth rate and a terminal value determined based on a long term earnings multiple. The cash flows are discounted using a pre-tax discount rate which reflects the current market rate appropriate for the business. For the calculation as at 31 December 2011, the Bank has used a long term forecast GDP growth rate of 4.8 percent and a discount rate of 30.6 percent. The management believes that any reasonable possible changes to the key assumptions on which calculation of recoverable amount is based, would not cause the carrying amount to exceed the recoverable amount.

11. DEFERRED TAX ASSETS The following are major deferred tax assets / (liabilities) recognised and movement thereon:
Note At 1 January 2011 2011 (Charge) / credit to profit and loss Debit/ (credit) to equity/ other comprehensive income (189,901) 7,036 (182,865) At 31 December 2011
----------------------------------------- (Rupees in '000) ------------------------------------------
Available for sale investments Provisions for loans and advances Other assets Fixed assets Surplus on revaluation of fixed assets Goodwill Actuarial gains on retirement benefits
11.1
311,500 6,279,742 (42,328) (317,102) (37,110) (2,777,999) (23,381) 3,393,322
322,904 (35,541) 36,712 4,001 (808,803) (480,727) 2010
121,599 6,602,646 (77,869) (280,390) (33,109) (3,586,802) (16,345) 2,729,730
At 1 January 2010
(Charge) / credit to profit and loss
Debit/ (credit) to equity/ other comprehensive income 53,964 (759) 53,205
At 31 December 2010
----------------------------------------- (Rupees in '000) ------------------------------------------
257,536 6,354,738 (4,654) (376,819) (41,173) (2,007,554) (22,622) 4,159,452
(74,996) (37,674) 59,717 4,063 (770,445) (819,335)
311,500 6,279,742 (42,328) (317,102) (37,110) (2,777,999) (23,381) 3,393,322
11.1
The Finance Act, 2010 amended the Seventh Schedule to the Income Tax Ordinance, 2001 whereby the limit for claiming provisions for advances and off balance sheet items in respect of Consumer and SME advances has been enhanced from 1% to 5% of gross Consumer and SME advances. In case of Corporate advances, the limit continues to be 1% of gross Corporate advances. The management carried out an exercise and based on that concluded that the Bank would achieve a deduction for provisions in excess of the limits prescribed by the Income Tax Ordinance, 2001 in future years. Accordingly, deferred tax asset of Rs. 2,363 million has been recognised on such provisions for income years 2009 upto 2011. The Seventh Schedule has been further amended through Finance Act, 2010 by introducing transitional provisions, whereby amounts provided for against irrecoverable or doubtful advances in tax year 2008 (income year 2007) and prior years, would be allowed in the tax year in which these advances are actually written off. The management considers that the amendment made vide Finance Act, 2009 in respect of provisions for bad debts being allowed at 1% of total advances is applicable for tax year 2010 (income year 2009), whereas for tax year 2009 (income year 2008), the provision for bad debts would continue to be allowed under the Seventh Schedule at the time of actual write-off. The deferred tax asset recognized upto December 31, 2008 relating to provisions for advances and off balance sheet items amounting to Rs. 4,240 million has been carried forward.
40
Annual Report 2011

Note 12. OTHER ASSETS Income / mark-up accrued in local currency Income / mark-up accrued in foreign currencies Advances, deposits, advance rent and other prepayments (Payable to) / receivable from defined benefit plans Advance taxation (payments less provisions) Branch adjustment account Unrealized gain on forward foreign exchange contracts Interest rate derivatives and currency options - positive fair value Receivable from SBP / Government of Pakistan Receivable from associated undertakings Receivable from Standard Chartered Bank, Sri Lanka operations Non-banking assets acquired in satisfaction of claims Advances against future Murabaha Advance Federal Excise Duty Tax compensation under section 102 of the Income Tax Ordinance, 2001 Bank acceptances Others Provision against other assets 12.1 Provision against other assets Opening balance Net charge for the year Closing balance 12.2 12.3 13. 301,916 255,546 557,462 205,190 96,726 301,916 2011 2010 -------- (Rupees in '000) --------2,429,189 40,329 907,707 (222) 7,522,940 314,373 613,650 2,408,980 327,749 44,270 137,408 783,940 564,616 100,000 21,542,782 98,301 37,836,012 (557,462) 37,278,550 4,234,762 199,291 862,524 18,915 3,571,282 329,739 407,072 2,985,800 56,539 5,563 124,847 65,555 116,333 5,042,995 288,721 18,309,938 (301,916) 18,008,022
25.1 12.2
12.3 12.1
Market value of non-banking assets acquired in satisfaction of claims amounted to Rs 475.439 million at December 31, 2011 (2010: Rs. 91.983 million). Accordingly, the differential between carrying amount and market value has been provided. Included in these acceptances is Rs 2,605.560 million (2010: Rs 1,600 million) which have been further discounted by the Bank. Note BILLS PAYABLE In Pakistan Outside Pakistan 2011 2010 -------- (Rupees in '000) --------4,377,080 199,709 4,576,789 5,468,828 223,036 5,691,864
14.
BORROWINGS FROM FINANCIAL INSTITUTIONS In Pakistan Outside Pakistan 19,360,413 1,451 19,361,864 19,360,413 1,451 19,361,864 14,280,581 1,633,762 15,914,343 14,280,581 1,633,762 15,914,343
14.1
Particulars of borrowings with respect to currencies In local currency In foreign currencies
14.2
Details of borrowings secured / unsecured Secured Borrowings from State Bank of Pakistan under Export Refinance (ERF) scheme Repurchase agreement borrowings (Repo) State Bank of Pakistan - LTFF State Bank of Pakistan - LTF - Export Oriented Projects Unsecured Call borrowings Overdrawn nostro accounts
14.2.1 14.2.2 14.2.3 14.2.4
15,261,066 1,792,417 2,163,538 21,028 19,238,049 100,000 23,815 19,361,864
12,875,118 1,369,379 31,116 14,275,613 1,638,730 15,914,343

14.2.5

14.2.1 Mark-up on Export Refinance (ERF) from State Bank of Pakistan is charged at 10.2 percent to 11 percent (2010: 8.5 percent to 9 percent) per annum. ERF borrowings also include borrowings under Islamic Export Refinance scheme amounting to Rs.1.923 billion (2010: 805 million). These borrowings are secured against demand promissory notes executed by the Bank in favour of State Bank of Pakistan. 14.2.2 Repurchase agreement borrowings carry mark-up rates ranging from 11.65 percent to 11.85 percent (2010: Nil percent) per annum payable at maturity and are due to mature by January 2012. 14.2.3 Mark-up on Long Term Finance Facility (LTFF) from State Bank of Pakistan is charged at rates ranging from 8.5 percent to 12.6 percent (2010: 7 percent to 9.5 percent) per annum. These loans are secured against promissory notes executed by the Bank in favour of State Bank of Pakistan. 14.2.4 Mark-up on Long Term Finance for Export Oriented Projects (EOP) from State Bank of Pakistan is charged at 6.5 percent to 7 percent (2010:5 percent) per annum. These loans are secured against promissory notes executed by the Bank in favour of State Bank of Pakistan. 14.2.5 These include overdrawn nostro accounts with other branches and subsidiaries of Standard Chartered Group outside Pakistan amounting to Rs. Nil (2010: Rs. 1,633.622 million).
Note
15. DEPOSITS AND OTHER ACCOUNTS Customers Fixed deposits Savings deposits Current accounts (non-remunerative) Margin accounts Special exporters' account Financial Institutions Non-remunerative deposits 15.1 15.2 15.1
2011 2010 -------- (Rupees in '000) ---------
37,616,096 103,630,972 92,865,197 559,710 540,657 235,212,632 740,090 235,952,722
45,968,703 90,401,741 81,552,663 951,052 930,283 219,804,442 461,320 220,265,762
This includes Rs. 216.542 million (2010: Rs.93.610 million) against balances of other branches and subsidiaries of Standard Chartered Group operating outside Pakistan. Particulars of deposits In local currency In foreign currencies 189,987,132 45,965,590 235,952,722 173,998,222 46,267,540 220,265,762
16.
SUB-ORDINATED LOANS Term Finance Certificates issued 16.1 699,200 1,135,900
16.1
The Bank issued subordinated Term Finance Certificates in three issues. The first and second issues of Rs 750 million each was fully repaid during the year 2008 and 2011 respectively. The outstanding third issue of Rs 1,000 million is unsecured and is subordinated to the depositors and other creditors of the Bank, and carry the following terms: Third Issue Year of Issue Rating Rate 2005 AAA 2.00% above the six months Karachi InterBank Offered Rate ("KIBOR") prevailing one working day prior to the beginning of each semi annual period 7 years
Floor Ceiling Repayment
42
Annual Report 2011

Note
17. OTHER LIABILITIES Mark-up / return / interest payable in local currency Mark-up / return / interest payable in foreign currencies Accrued expenses Advance payments Sundry creditors Unrealized loss on forward foreign exchange contracts Unrealized loss on interest rate derivatives and currency options Due to Holding Company Unclaimed balances Dividend Payable Provision against off balance sheet obligations Worker's Welfare Fund (WWF) payable Short sell - Pakistan Investment Bonds Bank acceptances Unsettled trades Others 17.1 Due to Holding Company On account of reimbursement of executive and general administrative expenses Others 17.2 Provision against off-balance sheet obligations Opening balance Charge / (reversal) for the year Closing balance 18. 18.1 SHARE CAPITAL Authorized 83,465 38,896 122,361 86,518 (3,053) 83,465 3,876,742 691,588 4,568,330 4,158,379 709,329 4,867,708
2011 2010 -------- (Rupees in '000) --------1,225,316 2,092,742 108,249 669,844 473,575 2,298,819 2,453 1,950,382 158,759 634,219 876,589 10,654,614 4,867,708 78,871 83,465 112,836 660,074 5,042,995 47,046 373,134 27,841,964
17.1 17.2 12.3
8,413,722 4,568,330 1,120,420 3,074 122,361 287,712 21,542,782 49,857 547,704 41,225,688
2011 2010 (Number of shares) 4,000,000,000

18.2
4,000,000,000
Ordinary shares of Rs.10 each
40,000,000
40,000,000
Issued, subscribed and paid-up
2,939,785,018
2,939,785,018
Ordinary shares of Rs. 10 each Fully paid in cash Issued in terms of scheme of amalgamation
29,397,850
29,397,850
931,800,003 3,871,585,021
18.3
931,800,003 3,871,585,021
18.3
9,318,000 38,715,850
9,318,000 38,715,850
These represent 892,554,151 shares of Rs 10 each issued and allotted at par to Standard Chartered Bank, United Kingdom against transfer of entire undertaking of SCB Branch Business by SCB to the Bank, and 39,245,852 shares issued and allotted at par credited as fully paid up to persons who were registered shareholders of Union Bank. These shares have been issued in accordance with the scheme of amalgamation duly approved by State Bank of Pakistan on 4 December 2006. At 31 December 2011, Standard Chartered Bank , United Kingdom, held 98.99% shares of the Bank.
18.4
Note
19. Reserves Share premium Statutory reserve 19.1 19.2 19.1 19.2
2011 2010 -------- (Rupees in '000) --------1,036,090 2,720,535 3,756,625 1,036,090 1,631,398 2,667,488
This represents excess of fair value of the shares over par value of shares issued to registered shareholders of Union Bank in terms of the amalgamation scheme. In accordance with the Banking Companies Ordinance, 1962, the Bank is required to transfer twenty percent of its profit of each year to a reserve fund until the amount in such fund equals the paid-up capital of the Bank.

19.3 The Board of Directors in its meeting held on March 5, 2012 has announced a final cash dividend of 10% (Re. 1/- per share) in respect of the year ended December 31, 2011 (2010: Rs. 0.6 per share). These financial statements for the year ended December 31, 2011 do not include the effect of these appropriations which will be accounted for subsequent to the year end. SURPLUS / (DEFICIT) ON REVALUATION OF ASSETS - NET OF DEFERRED TAX Surplus / (deficit) arising on revaluation of: Fixed assets Securities
20.
Note
2011 2010 -------- (Rupees in '000) --------3,543,590 (225,418) 3,318,172 3,551,020 (578,045) 2,972,975
20.1 20.2
20.1
Surplus on revaluation of fixed assets Surplus on revaluation of fixed assets as at 1 January Transferred to unappropriated profit in respect of incremental depreciation charged during the year - net of deferred tax Related deferred tax liability Surplus on revaluation of fixed assets as at 31 December - gross Less: Related deferred tax liability on: Revaluation surplus as at 1 January Revaluation surplus recorded during the year Incremental depreciation charged during the year transferred to profit and loss account Surplus on revaluation of fixed assets as at 31 December - net of tax 3,588,130 3,599,739
(7,430) (4,001) (11,431) 3,576,699
(7,546) (4,063) (11,609) 3,588,130
(37,110) 4,001 (33,109) 3,543,590
(41,173) 4,063 (37,110) 3,551,020
20.2
Surplus / (deficit) on revaluation of Available for Sale securities Market Treasury Bills Pakistan Investment Bonds Sukuk and Ijarah Bonds Listed shares and units of mutual funds 87,937 (434,030) (1,332) 408 (347,017) 121,599 (225,418) (34,196) (855,696) (108) 455 (889,545) 311,500 (578,045)
Related deferred tax asset 21. 21.1 CONTINGENCIES AND COMMITMENTS Transaction-related contingent liabilities Guarantees issued favouring: - Government - Others 21.1.1 21.2 Guarantees relating to Islamic Banking Business amount to Rs. 2,025 million (2010: Rs. 2,039 million). Trade-related contingent liabilities Letters of credit 21.2.1 21.3 21.2.1 21.1.1
35,465,770 25,987,687
30,962,886 16,542,077
19,526,195
15,182,936
Letters of credit relating to Islamic Banking Business amount to Rs. 2,860 million (2010: Rs. 1,045 million). Other contingencies Claims against the Bank not acknowledged as debt 21.3.1 13,293,575 12,432,208
21.3.1
This includes claims for penal interest and additional surcharge amounting to Rs. 136.361 million (2010: Rs. 138.058 million) claimed by Customs authorities in respect of certain bank guarantees issued on behalf of a customer in favour of Collector of Customs, Government of Pakistan. The guarantees remaining outstanding against the said customer at 31 December 2011 amount to Rs.80.827 million (2010: Rs. 80.827 million). The Bank has referred the claims to Alternate Dispute Resolution (ADR) Committee, where it is yet to come up for a hearing. The Bank considers that the above amounts are not payable and if it is required to settle the claims, it would be able to recover them from the customer.
44
Annual Report 2011

21.4 Commitments in respect of forward foreign exchange contracts Purchase State Bank of Pakistan Other banks Customers Sale State Bank of Pakistan Other banks Customers The maturities of the above contracts are spread over a period of one year. 21.5 Commitments to extend credit The Bank makes commitments to extend credit in the normal course of its business but these being revocable commitments do not attract any significant penalty or expense if the facility is unilaterally withdrawn. 21.6 Derivative instruments 2011 Interest Rate Swaps No. of Notional Contracts Principal* FX Options No. of Notional Contracts Principal *
2011 2010 -------- (Rupees in '000) --------8,873,750 34,228,360 8,517,556 19,914,750 17,348,621 15,368,507
34,427,185 2,259,646
2,176,875 33,108,590 1,290,420
21.6.1 Product analysis
Counterparties With Banks for Hedging Market Making With FIs other than banks Hedging Market Making With other entities for Hedging Market Making Total Hedging Market Making 2010 Total Market Making * At the exchange rate prevailing at year end.
---------------------------------- (Rupees in '000) --------------------------------
30 4 48 82 98
39,617,555 1,016,333 61,527,574 102,161,462 125,021,858
132 132 264 204
15,822,498 15,822,498 31,644,996 8,800,720
Contracts with banks represent contracts entered with branches of Standard Chartered Bank, UK to obtain cover against the contracts with customers, except for 11 contracts with local banks having notional principal of Rs. 17,304 million. 21.6.2 Maturity analysis Interest Rate Swaps Remaining Maturity Upto 1 month 1 to 3 months 3 to 6 months 6 month to 1 year 1 to 2 year 2 to 3 years 3 to 5 years 5 to 10 years Above 10 years
No. of Contracts Notional Principal Negative Mark to Market Positive Net
----------------------- (Rupees in '000) ------------------------
2 2 12 27 12 10 17 82
200,000 434,333 16,563,782 32,287,543 9,102,037 28,173,366 15,400,401 102,161,462
(119) (1,822) (2,731,258) (3,201,364) (1,383,376) (607,036) (234,172) (8,159,147)
8,765 263,842 874,076 14,703 745,726 405,600 2,312,712
(119) 6,943 (2,467,416) (2,327,288) (1,368,673) 138,690 171,428 (5,846,435)
Annual Report 2011
45

Note
22. MARK-UP / RETURN / INTEREST EARNED On loans and advances to customers On loans and advances to financial institutions On investments in: i) Held for trading securities ii) Available for sale securities On deposits with financial institutions / State Bank of Pakistan On securities purchased under resale agreements On call money lending 23. MARK-UP / RETURN / INTEREST EXPENSED Deposits Securities sold under repurchase agreements Call borrowings Borrowings from State Bank of Pakistan under Export Refinance (ERF) scheme Term Finance Certificates (sub-ordinated loans) Others 24. GAIN / (LOSS) ON SALE OF SECURITIES Federal Government Securities Market Treasury Bills Pakistan Investment Bonds Commercial Paper Equity Securities 25. OTHER INCOME Income from Sri Lanka branch operations Rent on property Gain on disposal of fixed assets Gain / (loss) on derivatives Others 25.1 25.1 & 25.2 12,561 39,145 7,628 (509,028) 164,541 (285,153) 40,246 32,908 9,797 (283,086) 292,519 92,384 227,778 659,030 886,808 886,808 763,027 46,182 809,209 3,426 1,902 814,537 9,543,162 34,851 294,645 1,434,570 127,984 11,435,212 9,368,635 308,725 12,569 792,920 171,716 25,620 10,680,185
2011 2010 -------- (Rupees in '000) --------20,028,383 862,758 7,380 10,567,816 508,873 38 31,975,248 17,882,098 62,607 22,508 8,844,295 1,146,110 614 27,958,232
Consequent to Sale and Purchase Agreement (SPA) signed between Standard Chartered Bank, Sri Lanka (SCBSL) and Standard Chartered Bank (Pakistan) Limited (SCBPL), the Sri Lanka branch operations of SCBPL were amalgamated with SCBSL with effect from close of business on 10 October 2008. According to the terms of SPA, unproductive debts, staff of SCBPL who are not retained by the purchaser, 'their corresponding housing loans and assets arising from litigation which cannot be assigned are held in trust with SCBSL. The income from Sri Lanka branch operations in the current year mainly represents recoveries (net of expenses) in respect of assets held in trust. Prior year amount has been reclassified from note 28 'Other Charges' for better presentation.
25.2 26.
Note
ADMINISTRATIVE EXPENSES Salaries, allowances etc. (Income) / charge for defined benefit plans Contributions to defined contribution plans Rent, taxes, insurance, electricity etc. Legal and professional charges Communications Repairs and maintenance Stationery and printing Advertisement and publicity Donations Auditors' remuneration Depreciation Amortization Travelling, conveyance and vehicles' running Reimbursement of executive and general administrative expenses Others
2011 2010 -------- (Rupees in '000) --------4,371,955 (966) 286,649 1,192,827 86,217 527,972 745,012 204,400 270,621 19,502 17,715 433,196 268,697 188,055 3,875,954 752,315 13,240,121 4,193,162 994 266,637 1,086,608 97,381 470,987 819,580 182,045 144,515 20,195 23,242 541,107 383,064 117,459 3,764,765 739,527 12,851,268
26.1 26.2
46
Annual Report 2011

Note 26.1 Details of the donations given in excess of Rs. 100,000 are given below: Donee Institute of Business Administration (IBA) The Citizen Foundation The Kidney Centre Care Foundation Lahore University of Management Sciences SST Public School Rashidabad Rizwan Scholars HOPE AmanTech Foundation Bait-ul-Sukoon Trust
2011 2010 -------- (Rupees in '000) --------7,000 5,200 2,500 1,250 1,200 1,200 750 250 152 13,000 5,270 1,500 180 100
26.1.1
26.1.2
26.1.1 Mr. Mohsin Ali Nathani, CEO of the Bank is also a member of Board of Governors of The Kidney Centre. 26.1.2 Mr. Shahid Zaki, non executive director of the Bank is also CEO of AmanTech Foundation. 26.2 Auditors' remuneration Audit fee Fee for audit of pension, gratuity and provident funds Special certifications and others Taxation services Out-of-pocket expenses 27. OTHER PROVISIONS / ASSET WRITE OFFS Asset write offs Other provisions Provision against receivable under cross currency swap arrangements Overdue mark up suspended Provision against non-banking assets acquired in satisfaction of claims 89,198 309,984 309,984 399,182 28. OTHER CHARGES Charge against fine and penalties imposed by SBP Worker's Welfare Fund (WWF) 29,051 174,876 203,927 60,119 112,836 172,955 17,362 96,726 341,306 438,032 455,394 16,045 403 590 677 17,715 15,664 400 3,380 3,208 590 23,242
29.
TAXATION For the year - Current - Deferred
2,504,289 480,727 2,985,016 2,985,016
1,168,652 819,335 1,987,987 (30,884) 1,957,103
For prior years'
29.1
Relationship between tax expense and accounting profit Profit before taxation Tax at the applicable tax rate of 35% (2010: 35%) Incomes (dividend, capital gain etc.) at reduced rates Expenses that are not deductible in determining taxable income 8,430,702 2,950,746 (17,116) 51,386 2,985,016 5,562,718 1,946,951 (10,890) 21,042 1,957,103
29.2
Standard Chartered Bank (Pakistan) Limited The return for income year 2011 (tax year 2012) is due for filing by 30 September 2012. The tax department amended the assessments for income years 2007 to 2010 (tax years 2008 to 2011 respectively) under section 122 (5A) of the Income Tax Ordinance, 2001, determining additional tax liability of Rs. 8,461 million on account of various issues (such as disallowances of expenses relating to provision against loans and advances, goodwill amortisation etc.). Appeals against the amended assessment orders are being contested before different appellate forums, however, the Bank has discharged the aforesaid tax liability.

The management considers that a significant amount of the additional tax liability is the result of timing differences and is confident that the issues in the above mentioned tax years will be decided in favour of the Bank at appellate forums. Consequently, no additional provision is required. The Tax Authorities have passed an order levying Federal Excise Duty amounting to Rs. 114 million on certain items. The Bank is contesting the order in the appeal. The Bank has paid Rs.100 million under protest and the balance demand is legally stayed till the decision of the appeal. 29.3 Standard Chartered Bank Branch Operations The assessments have been finalized upto and including tax year 2006. The Banks / departmental appeals for the assessment / tax years 1976-77 to 2006 are pending before different appellate forums on various issues. The management expects favourable decisions in pending appeals and consequently, no additional provision is required. 29.4 Union Bank Limited The tax assessments for the assessment years 1993-94 through tax year 2007 are pending at various appeal forums against certain disallowances. The management expects favourable decision in pending appeals and consequently, no additional provision is required. 30. EARNINGS PER SHARE - BASIC AND DILUTED
2011 2010 -------- (Rupees in '000) --------5,445,686 3,871,585,021 3,605,615 3,871,585,021
Profit for the year Weighted average number of ordinary shares in issue during the year
--------------(Rupees)--------------Earnings per share - basic and diluted 31. CASH AND CASH EQUIVALENTS Cash and balances with treasury banks Balances with other banks 1.41 0.93
----------(Rupees in '000)---------26,293,094 3,054,167 29,347,261 24,087,842 821,931 24,909,773
32.
STAFF STRENGTH Permanent Temporary / on contractual basis / direct contracts Bank's own staff at the end of year Outsourced Total staff strength
--------------(Number)--------------3,009 3 3,012 1,906 4,918 3,074 2 3,076 1,783 4,859
33. 33.1
DEFINED BENEFIT PLANS General description Non Management Staff Pension Fund The plan provides pension calculated at 50% of the average pensionable salary after completing 30 years of service. The employees of the Bank are entitled to either pension or gratuity, but not both. However, the employees of ANZ Grindlays Bank transferred to the Bank are entitled to both pension and gratuity and the minimum number of years required for entitlement of pension is 25 years for these employees. Pension is calculated as 1/120 times the last drawn merged salary for each year of service. Non Management Staff Gratuity Fund The plan provides a lump sum gratuity calculated at one month's salary for each completed year of service (maximum 39 months) after completing 5 years of service. For the employees of ex-ANZ Grindlays Bank, the plan provides a lump sum calculated at 50% of last drawn merged salary for each completed year of service (maximum 40 months) after completing 5 years of service. However, if the employee is not entitled for pension, the percentage is increased to 100%. The employees of SCB are entitled to either pension or gratuity, but not both. Management Staff Pension Fund The plan is closed to active employees. The entire liability is in respect of existing pensioners.
48
Annual Report 2011

33.2 Principal Actuarial Assumptions The last actuarial valuation of the scheme was carried out on 31 December 2011 and the key assumptions used for actuarial valuation were as follows:
2011
Discount rate Expected rate of increase in salary in future years Expected rate of return on plan assets Expected long term rate of increase in pension Mortality rate Withdrawal rate 13% p.a. 12% p.a. 5.5%-11.7% p.a. 7% p.a. LIC (1975-79) ultimate mortality table rated down one year Light
2010
13.2% p.a. 13.2% p.a. 13.66%-13.93% p.a. 7.2% p.a. LIC (1975-79) ultimate mortality table rated down one year Light
SCB Non Management Pension Fund 2010 2011 33.3 Reconciliation of (receivable) / payable from / to defined benefit plan Present value of defined benefit obligations Fair value of plan assets (Asset) / liability recognised 33.4 Movement in defined benefit obligation Obligation as at 1 January Current service cost Interest cost Benefits paid Actuarial (gain) / loss on obligation Past service cost resulting from change in Rules Obligation as at 31 December 33.5 Movement in fair value of plan assets Fair value as at 1 January Expected return on plan assets Contribution by the Bank Benefits paid Actuarial gain / (loss) on plan assets Fair value as at 31 December 33.6 Movement in (receivable) / payable from / to defined benefit plan Balance as at 1 January Charge for the year Contribution to the fund during the year Actuarial (gain) / loss on plan assets Balance as at 31 December 33.7 Charge for defined benefit plan Current service cost Interest cost Expected return on plan assets Recognition of past service cost 448 7,135 (9,526) (1,943) 388 6,960 (8,652) (389) (1,693) (16,714) (1,943) 11,062 (7,595) (14,189) (1,693) (832) (16,714) 73,662 9,526 (6,121) (966) 76,101 72,888 8,652 (5,939) (1,939) 73,662 56,948 448 7,135 (6,121) 10,096 68,506 58,699 388 6,960 (5,939) (2,771) (389) 56,948 68,506 (76,101) (7,595) 56,948 (73,662) (16,714)
SCB Non Management Gratuity Fund 2011 2010
SCB Management Pension Fund 2011 2010
Total 2011 2010
(Rupees in '000) 55,950 (41,739) 14,211 42,222 (37,182) 5,040 45,189 (51,583) (6,394) 39,094 (46,335) (7,241) 169,645 (169,423) 222 138,264 (157,179) (18,915)
42,222 1,803 5,530 6,395 55,950
35,574 1,490 4,414 (896) 1,640 42,222
39,094 5,156 (6,680) 7,619 45,189
42,667 4,949 (5,632) (2,890) 39,094
138,264 2,251 17,821 (12,801) 24,110 169,645
136,940 1,878 16,323 (11,571) (6,557) 1,251 138,264
37,182 5,135 (578) 41,739
34,931 4,333 (2,082) 37,182
46,335 6,377 (6,680) 5,551 51,583
46,861 5,473 (5,632) (367) 46,335
157,179 21,038 (12,801) 4,007 169,423
154,680 18,458 (11,571) (4,388) 157,179
5,040 2,198 6,973 14,211
643 3,211 1,186 5,040
(7,241) (1,221) 2,068 (6,394)
(4,194) (524) (2,523) (7,241)
(18,915) (966) 20,103 222
(17,740) 994 (2,169) (18,915)
1,803 5,530 (5,135) 2,198
1,490 4,414 (4,333) 1,640 3,211
5,156 (6,377) (1,221)
4,949 (5,473) (524)
2,251 17,821 (21,038) (966)
1,878 16,323 (18,458) 1,251 994
33.8
Actual return on plan assets Expected return on plan assets Actuarial gain / (loss) on plan assets 9,526 (966) 8,560 8,652 (1,939) 6,713 5,135 (578) 4,557 4,333 (2,082) 2,251 6,377 5,551 11,928 5,473 (367) 5,106 21,038 4,007 25,045 18,458 (4,388) 14,070
33.9
Cumulative amount of actuarial gains / (losses) recognised in comprehensive income Expected contributions for next year Components of plan assets as a percentage of total plan assets Bonds Cash and net current assets Others
18,923 -
29,985
(12,408) -
(5,435)
40,185 -
42,253
46,700 -
66,803
33.10 33.11
94% 6% 0%
97% 3% 0%
89% 11% 0%
99% 1% 0%
18% 82% 0%
98% 2% 0%
Annual Report 2011
49

2011 2010 2009 2008 2007
33.12
Five year data on surplus / (deficit) of the plans and experience adjustments Present value of defined benefit obligation Fair value of plan assets Deficit / (Surplus) Experience adjustments on plan liabilities - loss / (gain) Experience adjustments on plan assets - loss / (gain)
----------------------------- (Rupees in '000) -----------------------------169,645 169,423 222 (741) (3,889) 138,264 157,179 (18,915) (4,247) 330 136,940 154,680 17,740 (7,621) 3,566 112,326 148,852 36,526 (7,620) (3,027) 243,948 333,183 89,235 (26,188) (22,440)
34.
SHARE BASED PAYMENTS The Bank's employees participate in the following share compensation plans operated globally by the ultimate holding company, Standard Chartered PLC (SCPLC). For employees in Pakistan, the Group operates cash equivalent or "phantom" arrangements under which employees can receive a cash benefit linked to either the growth in Group's share (Sharesave scheme) or the value of the Group's share (restricted / performance share awards). The arrangement does not give an option to the Bank's employees to buy SCPLC shares. The market value of shares is denominated in pounds sterling at the time of grant. i) Standard Chartered Share Plan (the 2011 Plan) The 2011 Standard Chartered Share Plan replaced all the Groups existing discretionary share plan arrangements following approval by shareholders at the Groups Annual General Meeting on 5 May 2011. It is the Groups main share plan, applicable to all employees with the flexibility to provide a variety of award types including performance shares, deferred awards (shares or cash) and restricted shares. Performance and restricted share awards will generally be in the form of nil price options to participate in the shares of SCPLC. The remaining life of the plan is ten years. Movements in the number of share options held by the Bank's employees are as follows:
Weighted average exercise price Number ('000) per share 2011 Weighted average exercise price Number ('000) per share 2010
At 1 January Granted during the year Exercised during the year Lapsed during the year Adjustment due to right issue At 31 December
27 (1) 26
The weighted average price at the time the options were exercised during 2011 was NIL (2010: NIL).
2011 2010 Weighted average exercise price No. of options Weighted average remaining life Expected Contractual years years
Range of exercise price

NIL
Weighted average exercise price -
No. of options 26
Weighted average remaining life Expected Contractual years years
10
6.5 / 9.4
ii)
International Sharesave Scheme The International Sharesave Scheme was first launched in 1996 and made available to all employees of the Bank. Employees have the choice of opening a three-year or a five-year savings contract. Within a period of six months after the third or fifth anniversary, employees may exercise the awards and receive any benefit in cash; alternatively, the employee may elect to have the savings, plus interest, repaid in cash. The price at which they may purchase shares is at a discount of up to 20 percent on the share price at the date of the invitation. There are no performance conditions attached to options granted. The options granted do not confer any right to participate in any share issue of any other company. Movements in the number of share options held by the Bank's employees are as follows:
109 42 (14) (19) 118
11.67 10.65 9.97 11.02 11.42
112 28 (13) (23) 5 109
10.44 15.19 10.15 9.44 11.28 11.67
50
Annual Report 2011

The weighted average price at the time the options were exercised during 2011 was 14.81 (2010: 17.61).
2011 Range of exercise price Weighted average exercise price 11.42 No. of options 118 Weighted average remaining life Weighted average Expected Contractual years years exercise price 3.33/5.33 2.4 10.43 No. of options 109 2010 Weighted average remaining life Expected Contractual years years 3.33/5.33 2.19
8.32/14.63
The intrinsic value of vested International Sharesave cash-settled awards as at 31 December 2011 was Rs. 6,636 thousand (2010: Rs 19,688 thousand). iii) Restricted Share Scheme The Restricted Share Scheme is a discretionary share incentive scheme for high performing and high potential staff at any level of the organisation whom the Group wishes to motivate and retain. Except upon appointment when an executive director may be granted an award of restricted shares, the Restricted Share Scheme is not applicable to the Group's executive directors, as it has no performance conditions attached to it. Fifty per cent of the award vests two years after the date of the grant and the remainder after three years. The awards granted under this scheme are nil cost options with any benefit payable in cash. The options granted do not confer any right to participate in any share issue of any other company. Movements in the number of share options held by the Bank's employees are as follows:
116 18 (21) (3) 110
99 59 (38) (9) 5 116
2011 Range of exercise price Weighted average exercise price No. of options 110 Weighted average remaining life Weighted average Expected Contractual exercise price years years 3.87 No. of options 116 2010 Weighted average remaining life Expected Contractual years years 5.4
N/A
The intrinsic value of vested Restricted Share Scheme cash-settled awards as at 31 December 2011 was Rs. 32,870 thousand (2010 : Rs. 54,530 thousand). iv) Supplementary Restricted Share Scheme The Group operates a Supplementary Restricted Share Scheme which can be used to defer part of an employee's annual bonus in shares. The plan is principally used for employees in the global markets area and is similar to the RSS outlined above for three important factors: executive directors are specifically prohibited from the plan; no new shares can be issued to satisfy awards; and there is no individual annual limit. Movements in the number of share options held by the Bank's employees are as follows:
6 1 (5) 2
5 6 (2) (3) 6
Annual Report 2011
51

2011 Range of exercise price Weighted average exercise price No. of options 2 Weighted average remaining life Weighted Contractual average Expected years years exercise price 5 6.29 No. of options 6
2010 Weighted average remaining life Expected Contractual years years 5 2.08
N/A
The intrinsic value of vested Supplementary Restricted Share Scheme cash-settled awards as at 31 December 2011 was Rs 4,487 thousand (2010 : Rs. 3,191 thousand). v) Executive Share Option Scheme (closed) The Executive Share Option Scheme is an intrinsic part of the Group's executive directors' and senior managers' total remuneration. An EPS performance criterion needs to be met before the options can be exercised. Executive share options are exercisable after the third, but before the tenth anniversary of the date of grant with any benefit payable in cash. The exercise price is based on the share price at the date of grant and options can normally only be exercised if a performance condition is satisfied. The options granted do not confer any right to participate in any share issue of any other company. Movements in the number of share options held by the Bank's employees are as follows:
At 1 January Granted during the year Exercised during the year Lapsed during the year At 31 December
2011 Range of exercise price Weighted average exercise price No. of options -
2010 No. of options -
1 (1) -
8.19 8.19
Weighted average remaining life Weighted average Expected Contractual years years exercise price -
Weighted average remaining life Expected Contractual years years 5 -
NIL
The intrinsic value of vested Executive Share Option Scheme cash-settled awards as at 31 December 2011 was Rs. Nil (2010: Rs. Nil). vi) Performance Share Plan The Performance Share Plan is designed as an intrinsic part of total remuneration for the Group's executive directors and for a small number of the Group's most senior executives. The awards granted under this scheme are Rs. Nil cost options. Certain performance criteria need to be met before the options can be exercised. The option granted do not confer any right to participate in any share issue of any other company. Movements in the number of share options held by the Bank's employees are as follows: 2011 2010 Number ('000) At 1 January Granted during the year Exercised during the year Lapsed during the year Adjustment due to right issue At 31 December
2011 Range of exercise price Weighted average exercise price No. of options 39 Weighted average remaining life Weighted average Expected Contractual years years exercise price 7.85 No. of options 73 2010 Weighted average remaining life Expected Contractual years years 7.76
73 (20) (14) 39
85 10 (21) (4) 3 73
N/A
The intrinsic value of vested Performance Share Plan cash-settled awards as at 31 December 2011 was Rs. 3,574 thousand (2010: Rs. 14,978 thousand). vii) The total expense recognised in respect of above schemes on equity settled basis amounts to Rs.95.760 million (2010: Rs. 47.733 million) and is also included in managerial remuneration note 35. As also explained in note 3.20 in detail, the Bank's liability towards its parent, however continues to be determined and recorded on cash settled basis.
52
Annual Report 2011

35. COMPENSATION OF CHIEF EXECUTIVE AND EXECUTIVES Chief Executive Directors Executives
2011
Note Director's remuneration / fees Managerial remuneration Contribution to defined contribution plan Rent and house maintenance Utilities Medical Others 35.1 35.3
2010
2011
2010
2011
2010
----------------------------------- (Rupees in '000) -----------------------------------93,496 3,422 7,467 1,867 234 106,486 1 264,439 3,214 7,013 1,753 1,097 277,516 2 3,580 3,580 3 3,355 3,355 3 1,891,409 185,882 413,899 103,475 8,763 186,049 2,789,477 887 1,673,962 151,858 336,576 84,144 7,200 80,936 2,334,676 812
Number of persons
35.1
The director's remuneration / fees represents remuneration paid to the Bank's 3 non-executive directors (2010: 3) for attending Board and Sub-Committee meetings. The Chief Executive is entitled to Bank provided free use of furnished accommodation. The Chief Executive and some of the executives are also provided with Bank maintained cars. In addition, the Chief Executive and some of the executives are also reimbursed for cost of medical expenses and other benefits like club subscription, education etc. Managerial remuneration also includes charge against share compensation plans. FAIR VALUE OF FINANCIAL INSTRUMENTS On-balance sheet financial instruments Except for investment in subsidiaries, unlisted companies, fixed term advances of over one year, staff loans and fixed term deposits of over one year, the fair value of on balance sheet financial assets and liabilities are not significantly different from their book value as these assets and liabilities are either short term in nature or are frequently re-priced. The fair value of fixed term advances of over one year, staff loans, fixed term deposits of over one year and investment in equity of unlisted companies cannot be calculated with sufficient reliability due to non-availability of relevant active market for similar assets and liabilities. The fair value of investment in quoted subsidiaries is disclosed in note 7.12.3 to these financial statements.
35.2
35.3 36.
Annual Report 2011
53

37. SEGMENT DETAILS WITH RESPECT TO BUSINESS ACTIVITIES Segment analysis with respect to business activity 2011 Internal Income Net mark-up / return / interest income Non mark-up / non interest income Operating income Non mark-up / non interest expenses Internal non mark-up / non interest expenses Operating profit before provisions and taxation Direct write-offs / provisions against non-performing loans and advances - net of recoveries Provision for diminution in the value of investments Profit before taxation Other segment items: Depreciation on tangible fixed assets Amortisation on intangible assets Segment assets (gross) Segment non performing loans Segment provision required Segment liabilities Segment return on net assets (ROA) (%) Segment cost of funds (%) 2010 Internal income Net mark-up / return / interest income Non mark-up / non interest income Operating income Non mark-up / non interest expenses Operating profit before provisions and taxation Direct write-offs / provisions against non-performing loans and advances - net of recoveries Provision for diminution in the value of investments - net Profit before taxation Other segment items: Depreciation of tangible fixed assets Amortisation of intangible assets Segment assets (gross) Segment non performing loans Segment provision required Segment liabilities Segment return on net assets (ROA) (%) Segment cost of funds (%) * Segment ROA = Net income / (Segment assets - Segment provisions) (10,479,597) 17,483,089 3,649,746 10,653,238 4,095,880 6,557,358 1,018,307 55,879 5,483,172 83,691 73,312 286,498,251 13,135,761 11,133,711 106,050,373 1.99% 6.34% 10,479,597 (205,042) 2,545,736 12,820,291 9,383,737 3,436,554 3,357,008 79,546 457,416 309,752 54,496,829 8,971,948 7,503,319 164,799,460 0.17% 3.51% 17,278,047 6,195,482 23,473,529 13,479,617 9,993,912 4,375,315 55,879 5,562,718 541,107 383,064 340,995,080 22,107,709 18,637,030 270,849,833 1.73% 4.53%
Wholesale Consumer Banking Banking Total -------------- (Rupees in '000) -------------(12,553,240) 21,375,476 3,855,434 12,677,670 4,215,074 82,304 8,380,292 2,533,873 5,846,419 55,888 50,720 319,838,506 15,068,724 13,422,943 121,527,768 1.91% 6.45% 12,909,222 (835,440) 2,359,639 14,433,421 9,628,156 273,678 4,531,587 1,947,304 2,584,283 377,308 217,977 59,246,404 10,628,138 8,566,474 180,288,495 5.10% 3.28% 355,982 20,540,036 6,215,073 27,111,091 13,843,230 355,982 12,911,879 4,481,177 8,430,702 433,196 268,697 379,084,910 25,696,862 21,989,417 301,816,263 2.36% 4.41%
* **
* **
** Segment cost of funds have been computed based on the average balances. The management reviews the performance of Corporate and Institutional Banking and Global Markets as one business segment, namely Wholesale Banking. Therefore the business activities of the Bank have been presented in two segments, Wholesale and Consumer Banking. Wholesale Banking Deposits, trade and other lending activities for corporates and financial institutions. It also includes the overall management of treasury of the Bank, which entails various cash and interest risk management products for customers. The products include FX forwards, FX options and interest rate swaps. Consumer Banking Wealth management, deposits, mortgages, auto finance, unsecured lending (credit cards, personal loans etc.) and SME lending (including SME trade).
54
Annual Report 2011

38. RELATED PARTY TRANSACTIONS Related parties comprise of Standard Chartered PLC, ultimate parent company, its other subsidiaries and branches, key management personnel, employees' retirement benefit funds and other associated undertakings. The transactions with related parties are conducted at commercial terms. The Bank also provides advances to employees at reduced rates in accordance with their terms of employment. The transactions and balances with related parties are summarised as follows: 2011 2010 -------- (Rupees in '000) --------OUTSTANDING BALANCES Group Nostro balances with other subsidiaries and branches of the holding company Overdrawn nostro balances with other subsidiaries and branches of the holding company Vostro balances of other subsidiaries and branches of the holding company Placements with other subsidiaries and branches of the holding company Deposits of group companies Due to holding company Due to group companies Due from associated undertakings Interest receivable from group companies Inter-company derivative assets Inter-company derivative liabilities Other receivables Subsidiaries Deposits of subsidiaries Loans to subsidiaries Accrued interest receivable Other receivables Key management personnel Loans and advances to key management personnel Deposits of key management personnel Others Deposits by staff retirement benefit funds Deposits by customers with common directorship (Payable to) / receivable from defined benefit plans Derivative assets Derivative liabilities PROFIT AND LOSS Group Mark-up / interest / income earned Mark-up / interest expensed Fee and commission expense Fee and commission income Reimbursement of executive and general administrative expenses Payment to group company for direct sales services rendered Administrative expenses including rent & other charges Net loss / (gain) on inter-company derivatives Royalty expense
2,986,847 216,542 10,354,397 11,731 4,568,330 32,803 179,828 137 782,787 800,435 356
758,120 1,633,622 93,610 23,964,247 12,890 4,867,708 19,059 128,720 23,327 885,244 1,004,935 563
78,138 64,563 1,941 1,494
77,874 520 1,126
126,737 89,958
117,187 42,834
72,074 670 (222) 8,747 35,762
50,921 885 18,915 231 831
82,247 2,554 83,768 46,758 3,875,954 536,781 3,633 102,042 136,512
69,133 811 88 773 3,764,765 539,504 (17,904) 48,539
Annual Report 2011
55

Note 2011 2010 -------- (Rupees in '000) ---------
Subsidiaries Mark-up / interest / income earned Mark-up / interest expensed Lease rentals paid Administrative expenses (including rent and other charges) Reimbursement of salaries Dividend income Key management personnel Mark-up / interest / income earned Mark-up / interest expensed Sale of vehicles Salaries and benefits Post retirement benefits Remuneration / fee paid to non-executive directors Others Contribution to defined contribution plans - net of payments received Charge for defined contribution plans Net (income) / charge for defined benefit plans Mark-up / interest expensed on deposits of staff retirement benefit funds Mark-up / interest expensed on deposits of customers with common directorship Donation to The Kidney Centre 26.1.1 Donation to Aman Tech Foundation 26.1.2 Net loss on derivatives 38.1 Net movements in loans and deposits are summarised as follows:
18,481 6,825 10,428 2,531 50,118
7,367 21,493 311 12,815 6,292 29,965
6,178 1,038 361,116 17,128 3,580
5,585 1,430 86 498,809 15,259 3,355
286,649 286,649 (966) 8,461 38 2,500 152 26,415
162,176 266,637 994 3,482 120,992 25 17,292
Balance as at Net Net 31 December disbursement / repayments / 2010 deposits withdrawals
Balance as at 31 December 2011
Loans and advances Key management personnel Subsidiaries Deposits Group companies Subsidiaries Key management personnel Others
---------------------- (Rupees in '000) ------------------------117,187 103,180 184,180 (93,630) (119,617) 126,737 64,563
12,890 77,874 42,834 51,806
576,636 26,278,355 677,773 50,989,904
(577,795) (26,278,091) (630,649) (50,968,966)
11,731 78,138 89,958 72,744
56
Annual Report 2011

39. 39.1 CAPITAL ASSESSMENT AND ADEQUACY Capital Structure The Bank's lead regulator, State Bank of Pakistan (SBP) sets and monitors capital requirements for the Bank as a whole. Effective 31 December 2008, SBP has advised all banks to calculate their capital requirements based on Basel II accord under the Standardised approach. The transition to the 'Advanced Approaches' of Basel II has been made discretionary for banks, and is subject to prior written approval from SBP. The State Bank of Pakistan through its BSD Circular No.07 of 2009 dated April 15, 2009 requires the minimum paid up capital (net of losses) for all locally incorporated banks to be raised to Rs. 10 billion by the year ending on December 31, 2013. The raise is to be achieved in a phased manner requiring Rs. 8 billion paid up capital (net of losses) by the end of the financial year 2011. The paid up capital of the Bank is comfortably in compliance with the SBP requirement. Furthermore, SBP requires the Bank to maintain a prescribed total capital to total risk-weighted assets ratio. As at the year end, SBP's minimum prescribed capital adequacy ratio is 10 percent. The Bank's ratio is compliant with this minimum benchmark. Banking operations are categorised in either the trading book or the banking book, and risk-weighted assets are determined according to specified requirements that seek to reflect the varying levels of risk attached to assets and off-balance sheet exposures. The Banks regulatory capital is analysed into three tiers: Tier I capital, which includes ordinary share capital, balance in share premium account, reserve for issue of bonus shares, general reserves as disclosed on the balance sheet (except those included in Tier II) and un-appropriated profits (net of accumulated losses, if any). Goodwill and other intangibles are deducted from Tier I capital. Tier II capital includes sub-ordinated debt, revaluation reserves on assets, exchange translation reserves and impairment allowances that are not held against identified debts. Sub-ordinated debt is limited to 50 percent of Tier I capital. Information on the terms, conditions and other features of the Bank's sub-ordinated debt currently in issue is given in note 16 to these financial statements. Revaluation reserves are eligible upto 45 percent for treatment as Tier II capital. There is also a restriction on the amount of impairment allowances that are not held against identified debts upto 1.25 percent of total risk weighted assets. Tier III supplementary capital consists of short term sub-ordinated debt solely for the purpose of meeting a proportion of the capital requirements for market risk. The Bank currently does not have any Tier III capital.
Total of Tier II and Tier III capital is limited to Tier I capital. 50 percent of the amount of investments in subsidiaries and associates not consolidated on the balance sheet is deducted from both Tier I and Tier II capital. 2011 2010 -------- (Rupees in '000) --------Tier I Capital Fully paid-up capital Balance in share premium account General reserves as disclosed on the balance sheet Un-appropriated/ un-remitted profits (net of accumulated losses, if any) Less: Book value of goodwill and other intangibles Other deductions (50 percent of investments in equity and other regulatory capital of majority owned securities or other financial subsidiaries not consolidated in the balance sheet) Total Tier I Capital------------> Tier II Capital Sub-ordinated debt - upto maximum of 50 percent of 'Total eligible Tier 1 capital' General provisions or general reserves for loan losses - upto maximum of 1.25 percent of 'Risk Weighted Assets' Revaluation reserves (upto 45 percent) Less: Other deductions (50 percent of investments in equity and other regulatory capital of majority owned securities or other financial subsidiaries not consolidated in the balance sheet) Total Tier II Capital------------> Total Regulatory Capital Base 38,715,850 1,036,090 2,720,535 8,797,964 (26,412,571) 38,715,850 1,036,090 1,631,398 6,716,831 (26,681,268)
(343,137) 24,514,731
(343,137) 21,075,764
50,000 613,097 1,453,357
379,360 665,745 1,214,363
(343,137) 1,773,317 26,288,048
(343,137) 1,916,331 22,992,095


39.2 Capital Adequacy The Banks capital management approach is driven by its desire to maintain a strong capital base to support the development of its business, to meet regulatory capital requirements at all times and to maintain good credit ratings, maximising shareholder value and at the same time maintaining investor, creditor and market confidence. The capital position is reviewed and monitored by the Asset and Liability Committee (ALCO) of the Bank. Regular reviews help to ensure that adequate levels of capital and an optimum mix of the different components of capital are maintained by the Bank to support the strategy. This is integrated with the Banks annual planning process that takes into consideration business growth assumptions across products and business segments and the related impact on capital resources. The following matters are taken into account while reviewing the Bank's capital position: a) b) c) d) current regulatory capital requirements and our assessment of future standards; demand for capital due to business growth forecasts; forecasted demand for capital to support credit ratings and as a signalling tool to the market; available supply of capital and capital-raising options
For calculation of Capital Adequacy Ratio, the Bank adheres to the calculation of capital requirements for credit, market and operational risk as per the guidelines of SBP, for Basel II. For credit risk, the Bank uses the 'Standardized Approach'. The Bank uses reputable and SBP approved rating agencies (ECAIs) for deriving risk weights for specific credit exposures. These are consistently applied across the Bank's credit portfolio for both on and off balance sheet exposures. The ECAIs used for rating various types of exposures are tabled in note 39.3 to these financial statements. For the purposes of Credit Risk Mitigation under the 'Standardised Approach', the Bank follows the instructions laid down by SBP vide their Circular No. 08 dated 27 June 2006 with regard to eligibility of collaterals, valuation and management. Where a transaction is secured by an eligible collateral and meets the eligibility criteria and minimum requirements as laid down by SBP, the Bank reduces its exposure under that particular transaction by taking into account the risk mitigating effect of the collateral for the calculation of capital requirement. Collaterals used include: Government of Pakistan guarantees, Inter-group guarantees, margins / liens and saving certificates. The Bank calculates its capital requirement for market risk in its portfolio, based on the methodology provided by SBP which takes account of specific and general market risk capital charge for interest rate risk using the duration method. For calculation of operational risk capital charge, the business activities of the Bank are divided into eight business lines: corporate finance, trading and sales, retail banking, commercial banking, payments and settlement, agency services, asset management and retail brokerage. The Bank's operations are mapped into these eight business lines as per the criteria laid down by SBP vide Circular No 08 dated 27 June 2006. Within each business line, gross income is the broad indicator that serves as a proxy for the scale of business operations and thus the likely scale of operational risk exposure within each of these business lines. The capital charge for each business line is calculated by multiplying gross income by beta factors assigned by SBP to that business line. Beta serves as a proxy for the industry-wide relationship between the operational risk loss experience for a given business line and the aggregate level of gross income for that business line. The total capital charge is calculated as the three-year average of the simple summation of the regulatory capital charges across each of the business lines in each year. The 'Standardised Approach' is preferred over the 'Basic Indicator Approach' so as to arrive at a capital charge that is reflective of the risks associated with each of the Bank's business lines. The Bank's approach for mitigating operational risk is further detailed in note 40.9 to these financial statements. The capital requirements for the Bank as per the major risk categories are indicated below :
Capital Requirements 31 December 2011

Credit Risk Portfolios subject to 'Standardized Approach' - Simple Government of Pakistan and State Bank of Pakistan Public Sector Entities Banks Corporate Portfolio Retail Portfolio Residential Mortgage Finance Past Due Portfolio All other Risk Weighted Assets Market Risk Capital Requirement for portfolios subject to 'Standardized Approach' Interest Rate Risk Foreign Exchange Risk Operational Risk Capital Requirement for operational risk - 'Standardised Approach' TOTAL Capital Adequacy Ratio Total eligible regulatory capital held (Note 39.1) Total Risk Weighted Assets Capital Adequacy Ratio (a) / (b) (a) (b) 4,509,837 20,379,890 2011 26,288,048 203,798,906 12.90% 4,254,196 18,817,409 261,190 61,304 143,011 163,090 2,869 323,094 1,421,924 11,298,284 755,585 137,910 423,276 1,184,617 1,908 147,415 1,932,755 9,041,256 1,164,719 164,173 369,380 1,435,506
Risk Weighted Assets 31 December 2011 31 December 2010
31 December 2010
---------------------- (Rupees in '000) ------------------------28,689 3,230,936 14,219,243 112,982,843 7,555,854 1,379,102 4,232,757 11,846,173 19,083 1,474,156 19,327,553 90,412,563 11,647,198 1,641,732 3,693,810 14,355,069
2,611,901 613,037
1,430,120 1,630,902
45,098,371 203,798,906 2010 22,992,095 188,174,155 12.22%
42,541,969 188,174,155
58
Annual Report 2011

(Rupees in '000) Credit Exposures subject to Standardised Approach Exposures
Corporate
2011
Amount outstanding*
20,343,061 3,017,661 2,282,744 3,829,574 30,508,323 16,620,714 652,402 353,733 126,098,035 15,148,271 28,689 127,798,331 23,655,615 370,337,153
2010
Net amount
5,568,425 2,028,423 2,282,744 5,744,361 4,321,913 8,300,156 652,402 530,599 2,858,666 28,689 105,701,188 17,458,031 155,475,597
Rating Category
0% 20% 50% 100% 150% 0% 20% 50% 100% 150% 0% 20% 50% 100% 150% 50% upto 150%
Deduction/ CRM**
14,774,636 989,238 (1,914,787) 26,186,410 8,320,558 (176,866) 126,098,035 12,289,605 22,097,143 6,197,584 214,861,556
Amount outstanding
12,855,415 7,030,168 1,632,997 5,756,891 21,335,706 29,016,100 746,352 329,760 85,918,263 4,247,859 19,083 127,094,324 26,367,741 322,350,659
Deduction/ CRM**
8,377,917 2,686,851 (2,878,446) 18,239,473 14,508,050 (164,880) 85,918,263 3,398,287 43,016,848 6,677,132 179,779,495
Net amount
4,477,498 4,343,317 1,632,997 8,635,337 3,096,233 14,508,050 746,352 494,640 849,572 19,083 84,077,476 19,690,609 142,571,164
Banks
Sovereigns etc
Unrated including retail All Other Exposures Total CRM= Credit Risk Mitigation
* Amount outstanding represents Original Exposure in the case of On-balance sheet items and the Credit Equivalent Exposure in the case of Off-balance sheet items. ** Deduction/CRM reflects reduction in exposures due to ratings and collaterals. 39.3 Types of exposures and ECAI's used Corporate JCR - VIS PACRA STANDARD AND POORS MOODY'S FITCH Banks Sovereigns
The Bank adheres to the mapping instructions issued by SBP on the Revised Regulatory Capital Framework under Basel II, issued vide BSD Circular No. 8 of 2006 dated 27 June 2006, vide BSD Circular Letter No. 09 of 2007 dated 24 August 2007, vide BSD Letter No. BSD/BAI-2/201/1141/2009 dated 2 December 2009 and vide BSD Circular No. 5 of 2010 dated 5 October 2010 with regard to credit ratings to be used. These are as follows:
LONG-TERM RATING GRADES MAPPING

Risk Weightage
20%
Standard & Poors Ratings Services

AAA AA+ AA AAA+ A ABBB+ BBB BBBBB+ BB BBB+ B BCCC+ CCC CCCCC C D
Moodys Investors Services

Aaa Aa1 Aa2 Aa3 A1 A2 A3 Baa1 Baa2 Baa3 Ba1 Ba2 Ba3 B1 B2 B3 Caa1 Caa2 Caa3 Ca C
Fitch Ratings
PACRA
JCR VIS
50% 100% 100% 150% 150%
SHORT-TERM RATING GRADES MAPPING

Risk Weightage
20% 50% 100% 150%

A-1+ A-1 A-2 A-3 B B-1 B-2 B-3 C

P-1 P-2 P-3 NP
Fitch Ratings
F1+ F1 F2 F3 B C D
PACRA
A-1 A-2 A-3 Others
JCR VIS
A-1 A-2 A-3 Others
Annual Report 2011
59

40. RISK MANAGEMENT Through its risk management structure, the Bank seeks to manage efficiently the core risks: credit, market, country and liquidity risk. These arise directly through the Banks commercial activities whilst compliance and regulatory risk, operational risk and reputational risks are normal consequences of any business undertaking. The basic principles of risk management followed by the Bank include: Balancing risk and return Risk is taken in line with the requirements of the Banks stakeholders. Risk should be taken within the Bank's risk appetite, consistent with the approved strategy. Any such risks are avoided which have a material probability of causing financial distress to the Bank or its clients or customers. Responsibility Given the Bank is in the business of taking risk, it is everyones responsibility to ensure that risk taking is both disciplined and focused. The Bank takes account of its social responsibilities and its commitment to customers in taking risk to produce a return. Accountability Risk is taken only within agreed authorities and where there is appropriate infrastructure and resource. All risk taking must be transparent, controlled and reported. Anticipation The Bank looks to anticipate future risks and to ensure awareness of all risk. Competitive Advantage The Bank seeks to achieve competitive advantage through efficient and effective risk management and control. Risk management The Bank aims to implement best practices and have a specialist risk function of international standards, with strength in depth, experience across risk types and economic scenarios. Ultimate responsibility for the effective management of risk rests with the Companys Board of Directors. Acting within an authority delegated by the Board, the Executive Committee reviews specific risk areas and monitors the activities of the Risk Committee (RC) and the Asset and Liability Committee (ALCO). RC headed by Chief Risk Officer (CRO), through authority delegated by the Board through the Banks Executive Committee, is responsible for credit risk, market risk, operational risk, compliance risk and regulatory risk, legal risk and reputational risk. ALCO, through authority delegated by the Board through the Banks Executive Committee, is responsible for management of the Bank's liquidity, capital adequacy and structural foreign exchange risk. The Pension Executive Committee, through authority delegated by the Board through the Bank's Executive Committee is responsible for management of pension risk. The day to day responsibility for managing risk rests with CRO who oversees and manages the risk through a team of managers; Senior Credit Officer responsible for credit risk in Wholesale Bank, Head of Consumer Credit responsible for credit risk in Consumer Bank (including SME), Head of Special Assets Management responsible for remedial risk management, Head of Credit Risk Controls responsible for collateral management, security documentation, credit MIS and controls, Head of Market Risk responsible for liquidity risk and risks associated with price movements, arising from interest and exchange rate movements and Head of Operational Risk responsible for enterprise wide operations. The Bank has established policies, procedures, processes, and controls and have provided the Risk team adequate support by way of risk systems and tools for measuring and reporting risk for monitoring, controlling, reviewing and managing risk. 40.1 Credit risk Credit risk is the risk that a counter party will not settle its obligations in accordance with agreed terms. Credit exposures may arise from lending, trade finance, securities and derivative exposures. Credit exposures include both individual borrowers and groups of connected counterparties and portfolios in the banking and trading books. The Board of Directors has delegated down the authority to RC through the Banks Executive Committee to establish risk appetite and make recommendations to the Board for approval of risk appetite and policies for managing credit risk. The CEO and the Executive Committee in turn rely on CRO and the Risk Committee to determine these and recommend for their support and Board's approval. The RC is also delegated down by the BOD responsibility to delegate credit authorities to independent Risk Officers. Credit risk appetite is established through business strategy papers and underwriting standards by the business managers, which are approved by the Board once recommended, and supported by the Executive Committee. Specific procedures for managing credit risk within Wholesale and Consumer (including SME) are determined at the Senior Credit Officer and Head of Consumer Credit levels for their respective jurisdictions with specific policies and procedures being adapted to different risk environments and business goals. Credit analysis includes review of facility details, credit grade determination and financial spreading / ratio analysis. Portfolio review, Early Alerts and Stress Testing based on scenario analysis is a combined responsibility of Client Relationship and Risk and Finance function. Client relationship origination and credit approval roles are clearly segregated throughout Wholesale and Consumer Banks. 40.1.1 Wholesale Banking Within the Wholesale Banking business, alpha numerical risk grading system is used for quantifying the risk associated with a counter-party. The grading is based on a probability of default measure, with customers analysed against a range of quantitative and qualitative measures. Expected Loss is used for further assessment of individual exposures and portfolio analysis. There is a clear segregation of duties with loan applications being prepared separately from the approval chain.

40.1.2 Consumer Banking For Consumer Banking, program based standard credit application forms are generally used, which are processed in central units for different products and market segments. Consumer Banking Analytics team has developed Bureau scores and uses Bureau data for portfolio monitoring and for underwriting new business. Medium enterprises relationship based business of Consumer Bank operates much like Wholesale banking with numerical risk grading system for quantifying counter party risk. As with Wholesale Banking, origination and approval roles are segregated. 2011 Advances - Gross (Rupees in '000) Chemical and pharmaceuticals Agri business Textile Communication Insurance Telecommunications and information technology Cement Sugar Automobile and transportation equipment Transportation Financial Electronics and electrical appliances Production and transmission of energy Shoes and leather garments Individuals Others 8,891,626 4,982,873 30,106,679 209,159 47,677 5,958,475 10,662,073 3,097,848 1,536,177 5,237,601 2,294,702 1,589,791 20,923,124 1,651,182 18,704,875 35,715,689 151,609,551 Percent Deposits (Rupees in '000) Percent 1.34 0.14 0.53 5.72 0.58 0.66 0.02 0.00 0.29 0.74 0.60 1.09 5.17 0.06 63.42 19.64 100.00 Contingencies and Commitments (Rupees Percent in '000) 3,783,790 263,593 2,657,237 1,876,968 1,489,322 1,402,723 74,392 1,919,255 1,243,216 35,976,421 3,376,497 12,454,821 264,079 2,094 14,195,244 80,979,652 4.67 0.33 3.28 2.32 1.84 1.73 0.09 2.37 1.54 44.43 4.17 15.38 0.33 0.00 17.52 100.00
40.1.3
Segment by class of business
5.87 3,151,112 3.29 335,713 19.86 1,245,461 0.14 13,493,841 0.03 1,369,266 3.93 1,552,479 7.03 44,349 2.04 1,552 1.01 692,307 3.45 1,746,703 1.51 1,404,108 1.05 2,568,419 13.80 12,188,344 1.09 147,011 12.34 149,630,030 23.56 46,382,027 100.00 235,952,722
2010 Advances - Gross (Rupees in '000) Chemical and pharmaceuticals Agri business Textile Communication Insurance Telecommunications and information technology Cement Sugar Automobile and transportation equipment Transportation Financial Electronics and electrical appliances Production and transmission of energy Shoes and leather garments Individuals Others 12,055,122 3,412,050 31,206,057 265,565 51,893 6,034,904 8,586,127 2,552,046 2,833,286 2,327,602 638,204 2,662,375 30,315,008 1,244,733 21,935,553 31,785,918 157,906,443 Percent Deposits (Rupees in '000) Percent 1.42 0.06 0.45 3.82 0.55 2.32 0.01 0.01 0.42 1.19 0.71 1.29 3.21 0.05 61.01 23.48 100.00 Contingencies and Commitments (Rupees Percent in '000) 4,379,579 2,368,412 138,340 2,717,307 851,453 163,673 2,996,873 704,937 26,734,531 616,961 8,990,750 29,981 500 11,994,602 62,687,899 6.99 3.78 0.22 4.33 1.36 0.26 4.78 1.13 42.65 0.98 14.34 0.05 0.00 19.13 100.00
7.63 3,118,225 2.16 139,164 19.76 984,202 0.17 8,408,199 0.03 1,203,223 3.82 5,112,133 5.44 22,824 1.62 19,205 1.79 932,293 1.47 2,640,009 0.40 1,554,362 1.69 2,846,214 19.20 7,074,002 0.79 106,750 13.89 134,395,094 20.14 51,709,863 100.00 220,265,762
Annual Report 2011
61

40.1.4 Details of non-performing advances and specific provisions by class of business segment
2011 Classified Advances Specific Provision held 126,522 16,799 7,484,393 5,997 380,479 24,663 213,232 4,351,597 8,772,638 21,376,320
2010 Classified Advances Specific Provision held
----------------------------- (Rupees in '000) -----------------------
Chemical and pharmaceuticals Agri business Textile Footwear and Leather garments Automobile and transportation equipment Financial Production and transmission of energy Individuals Others
253,300 16,799 7,646,561 15,564 399,783 49,326 276,416 6,003,225 11,035,888 25,696,862
104,010 104,010 16,799 9,300 6,621,504 6,516,600 15,576 8,646 454,955 399,692 375,968 190,452 4,690,708 3,386,034 9,828,189 7,356,551 22,107,709 17,971,285
40.1.5
Segment by sector Advances (Rupees in '000) Public / Government Private 9,171,405 142,438,146 151,609,551 %
2011 Deposits (Rupees in '000) % Contingencies and Commitments (Rupees % in '000) 8.78% 91.22% 100%
6.05% 1,913,256 93.95% 234,039,466 100% 235,952,722 2010
0.81% 7,107,266 99.19% 73,872,386 100% 80,979,652
Advances (Rupees in '000) Public / Government Private 26,829,322 131,077,121 157,906,443 %
Deposits (Rupees in '000) %
Contingencies and Commitments (Rupees % in '000) 2.31% 97.69% 100%
16.99% 3,432,915 83.01% 216,832,847 100% 220,265,762
1.56% 1,446,027 98.44% 61,241,872 100% 62,687,899
40.1.6
Details of non-performing advances and specific provisions by sector 2011 Classified Advances Specific Provision held 21,376,320 21,376,320 2010 Classified Advances Specific Provision held
----------------------------- (Rupees in '000) -----------------------
Public / Government Private 40.1.7 GEOGRAPHICAL SEGMENT ANALYSIS
25,696,862 25,696,862
22,107,709 17,971,285 22,107,709 17,971,285
2011
Profit before taxation Total assets employed Net Assets employed Contingencies and Commitments
----------------------------- (Rupees in '000) -----------------------
Pakistan
8,430,702 356,404,874 8,430,702 356,404,874
54,588,611 80,979,652 54,588,611 80,979,652
2010 Profit before taxation Pakistan Total assets employed Net Assets Contingencies employed and Commitments 51,073,144 62,687,899 51,073,144 62,687,899
----------------------------- (Rupees in '000) -----------------------
5,562,718 321,922,977 5,562,718 321,922,977
62
Annual Report 2011

40.2 Market Risk The Bank recognises market risk as the exposures created by potential changes in market prices and rates. Market risk exposures arise primarily from interest rate and foreign exchange related contracts. The Bank has no significant exposure to equity and commodity price risk. Market risk is managed by the Head of Market Risk reporting directly to the CRO, who agrees policies and procedures and levels of risk appetite in terms of Value at Risk ("VaR"). Limits are then proposed by the business within the terms of agreed policy. These are agreed and delegated down by RC under delegated authority from the BOD, and are monitored by the Head of Market Risk as part of an independent risk management function. Policies cover both trading and non-trading books. In addition to market risk policies, as well as VaR and other market risk limits, independent stress testing of portfolios, factor sensitivity measures and derivatives are also employed as additional risk management tools to manage and hedge market risk exposures. Risk models are periodically back tested against actual results to ensure that pre-determined levels of accuracy are maintained. 40.3 Foreign Exchange Risk
Assets Liabilities 2011 Off-balance sheet items Net foreign currency exposure 65,276,005 (46,267,425) (351,972) (5,297,216) (41,580) (1,054,791) (1,621,605) 10,641,416
----------------------------------------- (Rupees in '000) -----------------------------------
Pakistan Rupee United States Dollar Great Britain Pound Euro Swiss Franc Japanese Yen Others
270,627,492 32,528,850 3,881,735 4,746,625 24,443 57,987 311,867,132
245,662,985 46,662,490 3,881,726 4,971,547 20,224 26,744 301,225,716 2010
40,311,498 (32,133,785) (351,981) (5,072,294) (45,799) (1,054,791) (1,652,848) -
Assets
Liabilities
Off-balance sheet items
Net foreign currency exposure 45,763,209 (30,447,856) (258,328) (2,911,925) (29,742) (2,371,145) 9,744,213
------------------------------------------- (Rupees in '000) -------------------------------------
Pakistan Rupee United States Dollar Great Britain Pound Euro Swiss Franc Others
232,400,108 37,812,440 4,075,795 5,512,661 19,474 370,502 280,190,980
208,215,108 52,163,503 4,038,016 5,988,864 19,331 21,945 270,446,767
21,578,209 (16,096,793) (296,107) (2,435,722) (29,885) (2,719,702) -
40.3.1 40.3.2
Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. The management sets limits on the level of exposure by currency in total, for both overnight and intra day positions which are monitored daily.
Annual Report 2011
63

40.4 Mismatch of interest rate sensitive assets and liabilities
Effective yield / interest rate Total Upto one month Over one month to three months
2011 Exposed to yeid / interest rate risk Over two Over three Over one Over three Over six years to years to year to months to months to two years three years five years six months one year
Over five years to ten years
Over ten years
Non interest bearing financial instruments
On-balance sheet financial instruments Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Other assets Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities On-balance sheet gap Off-balance sheet financial instruments Forward Lending Interest Rate Swap Foreign Currency options Forward Foreign Exchange Contracts Forward Borrowing Interest Rate Swap Foreign Currency options Forward Foreign Exchange Contracts Off-balance sheet gap Total yield / interest risk sensitivity gap Cumulative yield / interest risk sensitivity gap
-----------------------------------------------------------------------(Rupees in '000)------------------------------------------------------------------------
0.00%
26,293,094 3,054,167
7,036,227 -
15,000,077 15,475,277 30,475,354 4,712,443 5,313,998 10,026,441 20,448,913
49,803,163 2,614,358 52,417,521 579,614 7,212,246 7,791,860 44,625,661
3,654,103 642,076 4,296,179 429,525 799,202 1,228,727 3,067,452
287,551 14,623 302,174 14,623 14,623 287,551
19,256,867 3,054,167 771,327 3,707,445 28,318,267 55,108,073
2.01% 20,205,971 20,205,971 11.95% 104,375,499 15,000,085 6,369,343 13.10% 129,620,134 72,388,095 34,188,654 28,318,267 311,867,132 114,630,378 40,557,997 0.00% 4,576,789 10.00% 19,361,864 2,447,241 10,724,431 6.59% 235,952,722 118,954,999 8,004,444 13.95% 699,200 699,200 40,635,141 301,225,716 122,101,440 18,728,875 10,641,416 (7,471,062) 21,829,122
2,746,629 10,743,221 98,600 491,006 2,845,229 11,234,227 430,172 962,179 962,179 430,172 1,883,050 10,804,055
4,576,789 23,815 - 94,705,654 - 40,635,141 - 139,941,399 - (84,833,326)
55,080,732 15,822,498 51,619,665 122,522,895 47,080,731 15,822,498 36,686,830 99,590,059 22,932,836 33,574,252
2,318,516 12,750,502 24,637,959 21,671,887 26,956,475 34,422,389 200,000 2,318,516 12,750,502 17,314,106 16,263,828 19,632,622 29,214,330 7,323,853 5,208,059 (147,209) 27,037,181 26,889,972
753,480 4,895,546 5,649,026 434,333 753,480 3,086,411 4,274,224 1,374,802 21,823,715 48,713,687
9,136,635 414,273 9,550,908 7,427,147 22,485 7,449,632 2,101,276 46,726,937
20,193,942 20,193,942 12,093,601 12,093,601 8,100,341 11,167,793
5,092,630 5,092,630
8,255,314 8,255,314
12,402,211 12,402,211 2,998,191 2,998,191 9,404,020 9,691,571
4,009,407 19,918,052 4,009,407 19,918,052 1,083,223 (11,662,738) 2,966,273 (858,683)
- (84,833,326)
95,440,624 106,608,417 109,574,690 108,716,007 118,407,578 118,407,578 2010 Exposed to yeid / interest rate risk Over two Over three Over one Over six years to years to year to months to two years three years five years one year
Effective yield / interest rate
Total
Upto one month
Over one month to three months
Over three months to six months
Over ten years
On-balance sheet financial instruments Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Other assets Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities On-balance sheet gap Off-balance sheet financial instruments Forward Lending Interest Rate Swap Foreign Currency options Forward Foreign Exchange Contracts Forward Borrowing Interest Rate Swap Foreign Currency options Forward Foreign Exchange Contracts Off-balance sheet gap Total yield / interest risk sensitivity gap Cumulative yield / interest risk sensitivity gap 64 Annual Report 2011
-----------------------------------------------------------------------(Rupees in '000)------------------------------------------------------------------------
0.00% 0.00%
24,087,842 821,931
6,827,499 -
5,544,722 22,047,904 27,592,626 5,642,552 4,736,807 10,379,359 17,213,267
4,286,025 1,501,000 775,352 6,562,377 1,748 9,365,030 9,366,778 (2,804,401)
1,592,708 987,372 2,580,080 203,800 806,079 1,009,879 1,570,201
1,500,030 481,827 1,981,857 3,000 854,799 857,799 1,124,058
441,879 759,792 1,201,671 119,803 1,180 120,983 1,080,688
2,164,700 2,524,993 4,689,693 1,025,071 1,025,071 3,664,622
17,260,343 821,931
4.50% 30,421,885 20,610,409 5,525,451 11.34% 72,637,401 37,638,316 21,482,672 13.99% 139,269,413 67,776,150 38,683,509 12,952,508 280,190,980 132,852,374 65,691,632 0.00% 5,691,864 7.04% 15,914,343 792,459 6,487,180 6.62% 220,265,762 107,306,780 13,299,769 12.92% 1,135,900 1,135,900 27,438,898 270,446,767 109,235,139 19,786,949 9,744,213 23,617,235 45,904,683
771,374 1,761,835 3,470,679 - 12,952,508 1,761,835 35,276,835 1,761,835 5,691,864 1,638,730 83,895,318 27,438,898 118,664,810 (83,387,975)
70,714,086 4,400,360 52,631,879 127,746,325 54,307,772 4,400,360 36,575,885 95,284,017 32,462,308 42,206,521
1,423,839 2,908,886 27,255,871 16,602,308 28,679,710 19,511,194 7,143 2,019,275 1,423,839 2,908,886 21,731,711 9,716,783 23,162,693 14,644,944 5,517,017 4,866,250 29,134,252 50,770,933 79,905,185
30,000 67,635 8,113,004 8,210,639 905,993 67,635 5,115,215 6,088,843 2,121,796 19,335,063 99,240,248
1,274,037 660,696 1,934,733 1,493,081 12,176 1,505,257 429,476
17,310,484 17,310,484 8,685,892 8,685,892 8,624,592
22,040,652 13,815,128 22,040,652 13,815,128
16,243,785 16,243,785
12,135,883 18,812,647 10,247,858 12,135,883 18,812,647 10,247,858 9,904,769 (4,997,519) 5,995,927 11,028,827 (3,916,831) 9,660,549
(2,374,925) 10,194,793
1,761,835 (83,387,975)
96,865,323 107,060,116 118,088,943 114,172,112 123,832,661 125,594,496

40.5 Yield / Interest Rate Risk Yield risk is the risk of decline in earnings due to adverse movement of the yield curve. Interest rate risk is the risk that the value of financial instruments will fluctuate due to changes in the market interest rates. The Bank is exposed to various risks associated with the effects of fluctuations in the prevailing levels of market interest rates on its financial position and cash flows. The Bank manages this risk by matching the re-pricing of assets and liabilities and off-balance sheet instruments. 40.6 Liquidity Risk The Bank defines liquidity risk as the risk that the Bank either does not have sufficient financial resources available to meet all its obligations and commitments as and when they fall due, or can access them only at an excessive cost. Liquidity risk is managed through the Asset and Liability Committee ("ALCO"). This committee, chaired by the CEO, is responsible for oversight of statutory and prudential liquidity management. Liquidity risk is monitored through the internal liquidity risk management policy. A range of tools are used for the management of liquidity. These comprise commitment and wholesale borrowing guidelines, key balance sheet ratios, medium term funding requirements and day to day monitoring of future cash flows. In addition, liquidity contingency funding plans are reviewed periodically to ensure that alternative funding strategies are in place and can be implemented on a timely basis to minimise the liquidity risk that may arise due to unforeseen adverse changes in the market place. A substantial portion of the Banks assets are funded by customer deposits made up of current and savings accounts and other deposits. These customer deposits, which are widely diversified by type and maturity, represent a stable source of funds. The Bank also maintains significant levels of marketable securities either for compliance with local statutory requirements or as prudential investments of surplus funds.
Annual Report 2011
65

40.7 Maturities of assets and liabilities - based on contractual maturity of assets and liabilities of the Bank
2011 Total Over one Over three Over six Over one Over two Over three Over five Over ten month to months to months to year to years to years to years to years three months six months one year two years three years five years ten years ----------------------------------------------------------------(Rupees in '000)---------------------------------------------------------------------Upto one month
Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Other assets Operating fixed assets Intangible assets Deferred tax assets Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities 4,576,789 19,361,864 235,952,722 699,200 41,225,688 301,816,263 54,588,611 4,576,789 2,471,056 213,516,893 199,200 1,031,144 221,795,082 (98,619,266) 10,724,431 8,007,044 15,821,907 34,553,382 15,067,738 4,712,443 5,403,371 362,373 10,478,187 22,446,952 579,614 7,263,965 250,000 18,584,316 26,677,895 38,086,545 429,525 799,270 250,000 3,201,364 4,680,159 9,432,549 962,179 1,383,376 2,345,555 5,680,411 430,172 607,036 1,037,208 22,099,157 14,623 234,172 248,795 9,497,075 30,897,450
26,293,094 3,054,167 20,205,971 104,375,499 129,620,134 37,278,550 6,435,158 26,412,571 2,729,730 356,404,874
26,293,094 3,054,167 20,205,971 15,000,084 58,014,394 580,581 25,227 2,298 123,175,816
6,369,343 25,317,422 17,879,305 50,452 4,598 49,621,120
13,675,077 11,566,121 7,601,366 75,678 6,897 32,925,139
49,803,163 5,618,710 9,177,415 151,357 13,795 64,764,440
3,654,103 9,172,009 873,854 385,152 27,590 14,112,708
2,746,629 4,934,330 14,703 302,714 27,590 8,025,966
12,068,221 6,932,078 745,726 605,428 55,182 2,729,730 23,136,365
1,058,879 6,629,870 405,600 1,513,569 137,952 9,745,870
1,435,200 3,325,581 26,136,669 30,897,450
Net assets Share capital Reserves Unappropriated profit Surplus on revaluation of assets - net 38,715,850 3,756,625 8,797,964 3,318,172 54,588,611
Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Other assets Operating fixed assets Intangible assets Deferred tax assets Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities 5,691,864 15,914,343 220,265,762 1,135,900 27,841,964 270,849,833 51,073,144 5,691,864 2,431,189 191,017,241 237,500 1,950,829 201,328,623 (58,100,464) 6,487,180 13,314,247 6,545,825 26,347,252 25,496,708 5,642,552 4,821,772 217,760 10,682,084 10,555,544 1,748 9,450,379 199,200 8,795,232 18,446,559 (3,219,621) 203,800 806,079 449,200 4,691,906 6,150,985 8,337,461 3,000 854,864 250,000 3,644,240 4,752,104 9,372,366 119,803 1,180 1,419,601 1,540,584 15,240,635 1,025,071 576,571 1,601,642 12,203,266 31,187,249
24,087,842 821,931 30,421,885 72,637,401 139,269,413 18,008,022 6,601,893 26,681,268 3,393,322 321,922,977
24,087,842 821,931 20,610,409 37,638,315 59,413,642 623,338 27,436 5,246 143,228,159
5,525,451 21,482,672 16,808,371 7,962,096 54,877 10,493 51,843,960
4,219,722 13,289,538 3,630,312 82,316 15,740 21,237,628
4,286,025 1,501,000 6,280,207 2,963,594 164,632 31,480 15,226,938
1,592,708 12,183,963 310,490 338,327 62,958 14,488,446
1,500,030 11,116,995 1,115,221 329,266 62,958 14,124,470
1,766,879 10,338,185 500,590 656,327 125,916 3,393,322 16,781,219
2,936,075 8,076,677 902,381 1,625,105 264,670 13,804,908
1,761,835 3,323,607 26,101,807 31,187,249
Net assets Share capital Reserves Unappropriated profit Deficit on revaluation of assets - net 38,715,850 2,667,488 6,716,831 2,972,975 51,073,144
66
Annual Report 2011

40.8 Maturities of assets and liabilities - based on expected maturity of assets and liabilities of the Bank The expected maturity analysis is prepared in accordance with the guidelines issued by SBP through BSD Circular letter No. 3 of 2011 where non-contractual assets and liabilities are stated as per their expected maturities.
Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Other assets Operating fixed assets Intangible assets Deferred tax assets Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities 4,576,789 19,361,864 235,952,722 699,200 41,225,688 301,816,263 54,588,611
26,293,094 3,054,167 20,205,971 104,375,499 129,620,134 37,278,550 6,435,158 26,412,571 2,729,730 356,404,874
26,293,094 3,054,167 20,205,971 15,000,084 22,723,235 580,581 25,227 2,298 87,884,657
6,369,343 26,871,527 17,879,305 50,452 4,598 51,175,225
13,675,077 13,897,279 7,601,366 75,678 6,897 35,256,297
49,803,163 10,281,026 9,177,415 151,357 13,795 69,426,756
3,654,103 35,915,589 873,854 385,152 27,590 40,856,288
2,746,629 4,934,330 14,703 302,714 27,590 8,025,966
12,068,221 6,932,078 745,726 605,428 55,182 2,729,730 23,136,365
1,058,879 6,629,870 405,600 1,513,569 137,952 9,745,870
1,435,200 3,325,581 26,136,669 30,897,450
4,576,789 2,471,056 25,616,559 199,200 1,031,144 33,894,748 53,989,909
10,724,431 13,902,224 15,821,907 40,448,562 10,726,663
4,712,443 14,246,141 362,373 19,320,957 15,935,340
579,614 24,949,506 250,000 18,584,316 44,363,436 25,063,320
429,525 156,276,113 250,000 3,201,364 160,157,002 (119,300,714)
962,179 1,383,376 2,345,555 5,680,411
430,172 607,036 1,037,208 22,099,157
14,623 234,172 248,795 9,497,075
30,897,450
Net assets Share capital Reserves Unappropriated profit Surplus on revaluation of assets - net 38,715,850 3,756,625 8,797,964 3,318,172 54,588,611
Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Other assets Operating fixed assets Intangible assets Deferred tax assets Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities 5,691,864 15,914,343 220,265,762 1,135,900 27,841,964 270,849,833 51,073,144 5,691,864 2,431,189 28,587,931 237,500 1,950,829 38,899,313 62,050,540 6,487,180 20,304,207 6,545,825 33,337,212 20,497,156 5,642,552 15,306,713 217,760 21,167,025 3,056,216 1,748 30,420,259 199,200 8,795,232 39,416,439 (18,218,275) 203,800 124,790,608 449,200 4,691,906 130,135,514 (84,316,009) 3,000 854,864 250,000 3,644,240 4,752,104 9,372,366 119,803 1,180 1,419,601 1,540,584 15,240,635 1,025,071 576,571 1,601,642 12,203,266 31,187,249
24,087,842 821,931 30,421,885 72,637,401 139,269,413 18,008,022 6,601,893 26,681,268 3,393,322 321,922,977
24,087,842 821,931 20,610,409 37,638,315 17,135,336 623,338 27,436 5,246 100,949,853
5,525,451 21,482,672 18,798,779 7,962,096 54,877 10,493 53,834,368
4,219,722 16,275,151 3,630,312 82,316 15,740 24,223,241
4,286,025 1,501,000 12,251,433 2,963,594 164,632 31,480 21,198,164
1,592,708 43,515,022 310,490 338,327 62,958 45,819,505
1,500,030 11,116,995 1,115,221 329,266 62,958 14,124,470
1,766,879 10,338,185 500,590 656,327 125,916 3,393,322 16,781,219
2,936,075 8,076,677 902,381 1,625,105 264,670 13,804,908
1,761,835 3,323,607 26,101,807 31,187,249
Net assets Share capital Reserves Unappropriated profit Deficit on revaluation of assets - net 38,715,850 2,667,488 6,716,831 2,972,975 51,073,144 www.standardchartered.com.pk Annual Report 2011 67

40.9 Operational Risk Operational risk is the risk of a direct or indirect loss being incurred due to an event or action arising from the failure of technology, processes, infrastructure, personnel and other risks having an operational risk impact. The Country Operational Risk Committee ("CORC") has been established to ensure that an appropriate risk management framework is in place at a grass root level, and to report, monitor and manage operational, social, ethical and environmental risk. The CORC is chaired by the CEO, and CRO is an active member of this forum. All business units within the Bank monitor their operational risks using set standards and indicators. Significant issues and exceptions are reported to CORC and are also picked up by the independent Risk function for discussion at the Risk Committee chaired by the CRO. Disaster recovery procedures, business contingency planning, self-compliance assurance and internal audits also form an integral part of the operational risk management process. 41. ISLAMIC BANKING BUSINESS The Bank is operating with 15 Islamic Banking branches as at the end of 2011 (2010: 15). 41.1 Balance Sheet Assets Cash in hand Balances with and due from Financial Institutions Investments Financing and receivables - Murabaha - Musharaka - Diminishing Musharaka - Others Operating fixed assets Other assets Liabilities Deposits and other accounts - Current accounts - Savings accounts - Term deposits - Others Due to financial institutions Other liabilities Net Assets Represented by: Islamic Banking Fund Reserves Deficit on revaluation of assets - net CONTINGENCIES AND COMMITMENTS Charity fund Opening balance Additions during the year Payments / utilization during the year Closing balance 4,377 (4,377) 4,141 (4,141) 21 200,000 2,723,154 (1,332) 2,921,822 200,000 1,516,666 (108) 1,716,558 41.3 8,846,563 4,182,275 3,420,838 83,844 16,533,520 1,922,500 7,327,534 25,783,554 2,921,822 5,381,984 2,222,316 3,440,267 417,692 11,462,259 805,000 444,835 12,712,094 1,716,558 41.3 124,796 1,744,661 5,923,668 3,911,912 64,563 10,238,647 119,962 14,335,084 216,255 6,360,912 28,705,376 113,723 557,362 3,624,892 1,758,147 7,552,373 28,196 9,338,716 211,224 582,735 14,428,652
Note
2011 2010 -------- (Rupees in '000) ---------
68
Annual Report 2011

Note
41.2 Profit and loss Profit / return earned on financings, investments and placements Return on deposits and others dues expensed Net spread earned Provision against non performing financing Net spread after provisions Other income Fees, commission and brokerage income Other income Total other income Other expenses Administrative expenses Profit before taxation
2011 2010 -------- (Rupees in '000) ---------
2,355,604 (627,700) 1,727,904 (185,514) 1,542,390
1,471,808 (453,105) 1,018,703 (196,064) 822,639
461,960 7 461,967 2,004,357 41.4 (797,869) 1,206,488
253,618 2 253,620 1,076,259 (361,775) 714,484
41.3 41.4 42
This includes acceptances of Rs. 5,456 million (2010: Rs. 309 million). This includes Bank's Shariah Advisor cost of Rs.520 thousand for 2011. DATE OF AUTHORIZATION These financial statements were authorized for issue in the Board of Directors meeting held on 05 March 2012.
Annual Report 2011
69
Un-Consolidated Financial Statements

Annexure-1
Statement in respect of written-off loans or any other financial relief of five hundred thousand rupees or above as required under sub-section (3) of section 33A of the Banking Companies Ordinance, 1962 during the year ended 31 December, 2011.
Sr. No.
Name
Address
Name of Partners / Directors NIC / CNIC
Father / Husband Name
Outstanding Libilities at Beginning of Year Interest/ Principal Others Total Mark up
Principal
Amount Written off / Concession Interest/ Total Others Mark up Balance
SH. MOHAMMAD SHAFIQUE
22 SHAMI ROAD SHAMI BLOCK MUSLIM TOWN 1 FSD
33100-0137938-5
SHEIKH HAJI ABDUL GHAFOOR
1,599,158
683,511
2,282,669
559,158
1,355,273
1,914,430
FAYYAZ AHMAD KHAN
352 3 DHA LHR CANTT
273-44-188399
GHULAM HUSSAIN MALIK HASSAN AHMED
5,035,578
152,978
5,188,556
2,836,293
882,917
3,719,210
MALIK MOHAMMAD AYUB H NO 231 WESTWOOD COLONYTHOKAR NIAZ BAIGRAIWIND RO 8/9 ALI PARKTHOKAR NIAZ BAIGNEAR I.M.T STOP MULTAN
35202-2680499-9
10,698,793
3,754,339
14,453,132
6,365,686
2,504,705
8,870,391
NASIRA EJAZ
HOUSE NO 150-B MUSLIM TOWN SARGODHA RD FSD C-B 670LANE NO 5PESHAWAR ROAD RAWALPINDI CANTT,NEAR SHOP NO 12MAJEED PLAZABANK ROAD SADDAR RAWALPINDI
33100-6193226-5
MUHAMMAD EJAZ ELLAHI ZABAR DAST KHAN
2,312,421
964,248
3,276,669
1,012,421
684,797
1,697,218
ABDUL RAZZAK KHAN
37405-1532829-3
1,632,777
435,701
2,068,478
162,677
520,240
682,918
SH NISAR AHMED
DOST STREET SIMANDRI ROAD FAISALABAD 94/1 6TH STREET PHASE-VI D.H.A KARACHI
33100-0917755-3
MUHAMMAD AKBAR MUHAMMAD ZAHOOR ALAM
1,998,080
399,617
2,397,696
195,874
579,421
775,294
S PERVEZ ALAM
42301-8882602-7
4,999,525
1,497,528
6,497,053
1,499,525
2,078,295
3,577,820
MAQSOOD AHMED
444-B GULISTAN COLONYNO 2 MILLAT ROADFAISALABAD 12 JAMIA CLOTH MARKETGALE KATCHERY BAZAR FAISALABAD
33100-1625996-3
HAJI ABDUL AZIZ
1,207,473
363,023
1,570,496
96,063
413,501
509,564
KHAWAR MAQSOOD
11-E SHAH ALAM MARKET LAHORE
35202-2873459-7
MAQSOOD ALAM MUHAMMAD HUSSAIN SHAIKH
7,399,618
1,954,814
9,354,432
2,599,618
1,954,814
4,554,432
10
MUNIR HUSSAIN SHAIKH
127 ABU BAKAR NEW GARDEN TOWN LAHORE
35202-6338470-1
4,185,633
59,583
4,245,216
596,398
596,398
11
IJAZ UL QAMAR
100-B AZIZ SHAHEED ROAD SIALKOT CANTT SIALKOT
34603-1115981-5
CHAUDHARY MUHAMMAD SHAFI
1,446,548
976,834
2,423,382
246,548
1,001,405
1,247,953
12
AMIR MAJEED
101 WEST WIND ESTATE FL-11 CLIFTON BLOCK-2 KEHKASHAN
517-65-042657
ABDUL MAJEED CLODY
9,587,136
4,155,204
13,742,340
3,355,086
4,155,204
7,510,290
13
M AFZAL
CHAK NO.204,R.BDAKHANA KHAS FAISALABAD CHAK NO.204-R.BMAIN MADINA TOWN ROAD FAISALABAD
33100-3622072-3
CHAUDHRY FAQIR MUHAMMAD
9,596,388
4,001,311
13,597,700
6,563,378
88,898
6,652,276
14
HAKIM MOHAMMAD IQBAL 152-B EME HOUSING SOCIETY MULTAN ROAD LAHORE
36402-3443792-5
M RUSTAM BHATTI
5,652,000
2,150,585
7,802,585
1,607,340
2,300,432
3,907,772
15
QAMER ABBAS ZAIDI
32 A JHAFARIA COLONY LHR
272-60-198224
QAMAR ABBAS ZAIDI SYED ALAM SHAH BASHIR AHMAD SHEIKH
1,267,927
295,271
1,563,198
316,207
549,551
865,758
16
SYED MUKARAM HUSSAIN HOSUE NO 12 GALI 21 NABI PURA LAL PUL MUGHAL PURA MASOOD AHMED 5 SARFRAZ CLOTH MARKET GOLE KAPRA GHNTA GHAR FAISALABAD
35201-6543905-5
2,649,090
1,146,696
3,795,787
661,790
1,322,335
1,984,125
17
33100-8759568-1
2,460,392
616,109
3,076,502
442,392
711,874
1,154,266
18
M ASIF
232-U OPPOSITR LUMS D.H.A. CANTT LAHORE
35201-9997991-7
MOHAMMED RAFIQ
3,036,328
1,365,934
4,402,262
1,036,328
1,567,247
2,603,574
70
Annual Report 2011

Annexure-1
Sr. No.
Name
Address
Principal
19
M UL HASSAN KHAN
H NO B 4 ST 40 F 7/1 ISD
101-61-697434
MUHAMMAD YUSUF KHAN MUSHTAQ AHMED BHATTI
10,198,639
4,284,557
14,483,196
4,078,639
4,284,557
8,363,196
20
KALSOOM AKHTAR
H NO P-46 CANNAL PRK EAST CANNAL ROAD NEAR HUMDRD UNIVERSTY FAISALABAD 7 C DHA LAHORE
33100-0524348-6
4,420,029
1,106,882
5,526,911
3,169,159
57,709
3,226,868
21
IMTIAZ AHMED MALIK
275-58-325564
MALIK MUHAMMAD AKRAM FAZAL HUSSAIN
299,983
463,207
763,189
299,983
477,143
777,126
22
AHMED ALI
H NO B-334 P GULISTAN COLONYNO 2 FAISLABAD NEW CIVIL LINE ROAD OPP H NO 20 FAISLABAD
33100-4819700-1
1,990,014
492,685
2,482,700
497,659
689,931
1,187,590
23
M UMAR FAROOQ
H NO F-704F-BLOCKNEAR MASHAL SCHOOLSATTELITE TOWNR P/1573DEGREE COLLEGE ROADOPP.MALIK MEMORIAL HOSPIT P.O BOX 2201 OPPSOITE: GIRLS HIGH SCHOOL SIALKOT
37405-8199577-7
ABDUL GHAFOOR KHAN
5,195,879
1,648,434
6,844,313
778,889
1,897,134
2,676,023
24
ZEESHAN AKRAM KHAN
34603-2808719-9
MUHAMMAD AKRAM KHAN
2,116,042
636,548
2,752,590
1,472,438
25,011
1,497,449
25
MUSHTAQ AHMED JAVAID 174 A JALIL TOWN GJW
34101-2592117-7
MAIN LAHAB DIN (LATE) MUHAMMAD SHAFI MUHAMMAD USMAN
1,626,037
168,495
1,794,532
655,900
655,900
26
IMTIAZ HUSSAIN
FLAT NO 4 NAJEEB PLAZA 1-9 MARKAZ ISL
61101-1886729-7
1,744,458
733,363
2,477,821
444,458
733,363
1,177,821
27
M HUSSAIN USMAN
KAMANI CONSULTANT & MANAGMENT 205 A.H. CENTRE SHAHRAH-E-LIAQUAT
42301-8481331-5
1,388,691
334,947
1,723,639
263,841
462,951
726,792
28
MOHAMMAD RAMZAN SABQI
FLAT NO 203 ARIF ARCADE PLOT NO 48 BLOCK 3 BAHADUR
42201-2808512-5
WALI MOHAMMAD SABQI
4,327,045
1,353,477
5,680,521
2,618,396
55,470
2,673,866
29
ZAMIN SHAH
H NO 4 ST 955 CAB LINES RWP
37405-0566805-5
MISKEEN SHAH
2,994,509
819,093
3,813,602
599,009
1,005,548
1,604,557
30
TAHIR USMAN
B-209,BLOCK 6 GULSHAN E IQBALNEAR DISCO BAKERY KARA SHOP NO 5 BUILDING NO 3-C10TH STREET H NO E 119 BLOCK E SATTELITE TOWN NEAR HOLY FAMILY HOSPITAL RAWALPINDI
42201-6720877-3
SHAHZAD BI
9,795,624
4,084,640
13,880,264
3,428,061
4,251,032
7,679,092
31
M MAZHAR AWAN
36201-4913274-3
MALIK JAHANDAD KHAN MUHAMMAD TAHIR
867,878
603,098
1,470,976
237,138
610,638
847,776
32
M SHAKEEL
HOUSE NO C/164 BLOCK 6 GULISTAN E MUSTAFA FEDERAL B AREA KARACHI
42000-0564185-1
1,489,959
632,133
2,122,092
372,490
632,133
1,004,623
33
MOHAMMAD AKBAR KHAN M,A,K TRADERS SUIT#6,7 3RD FLOOR RANA CHEMBER LAKE LASANI FALOODA LAHORE RIAZ HUSSAIN KHAN HOUSE NO. C - 256 , BLOCK - 10, FEDERAL ' B ' AREA , PH#6349049 197 E MOHAMMADI PARK NEAR SHAMI CHOWK GHULAM MOHAM
35202-7271412-1
M ARSHAD KHAN
2,692,229
1,114,191
3,806,420
942,248
1,650,793
2,593,041
34
42101-2628509-5
AHMED HUSSAIN KHAN MANZOOR AHMAD
2,476,596
1,070,442
3,547,038
742,945
1,070,442
1,813,387
35
M YASIN
33100-6853002-1
2,149,412
859,814
3,009,225
1,361,356
1,361,356
36
SALMAN MALIK
4/1, FAZLIA COLONY, FEROZ PUR ROAD, LAHORE
35202-5904340-7
MUHAMMAD ASHIQ MALIK
4,262,393
60,676
4,323,069
700,000
172,681
872,681
37
QASIM ALI SHAH
B-52 BLOCK 13 FEDERAL B AREA KARACHI
42000-6843871-3
BUNYAD ALI SHAH SYED ZAFAR HUSSAIN RIZVI SUFI FAIZ AHMED
3,010,015
753,741
3,763,756
1,010,015
1,294,299
2,304,314
38
SYED MUKHTAR HUSSAIN HOUSE NO 71-A, SOUTH CIRCULAR AVENUE RIZVI PHASE 2, D.H.A KARACHI NASEER AHMED H NO.135-136JAMIA MUSJID CHOWKKARAM TOWN FAISALABAD ST NO.4 ABDULLAH CENTRE KARKHANA BAZAR FAISALABAD
42301-9114784-5
14,809,090
5,670,323
20,479,413
4,809,014
5,670,323
10,479,338
39
33100-8782913-1
2,146,367
429,228
2,575,594
555,643
555,643
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71

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Address
Principal
40
EJAZ MUSTAFA
5 A RACE COURSE ROAD RAIL LINE FSD
33100-8319290-7
SHEIKH GHULAM MUSTAFA MUHAMMAD YAQOOB MOHAMMAD FAZIL SYED SARFARAZ HASAN
9,543,752
1,600,213
11,143,965
860,382
2,628,380
3,488,762
41
MOHAMMAD AYUB
HOUSE NO 65 BLOCK 14 SECTOR B 1 TOWNSHIP LHR H NO GF 3 BUILDING NO 36 SEAVIEW TOWN SHIP PHASE 5 B 152 BLOCK L NORTH NAZIMABAD KHI
35202-2797783-5
1,683,050
687,564
2,370,614
939,979
939,979
42
M ANWAR SAJID
42301-0113488-1
5,600,000
976,125
6,576,125
1,960,000
976,125
2,936,125
43
SEEMA YASMEEN
42101-8853264-6
5,599,920
2,335,090
7,935,010
1,599,920
2,430,212
4,030,132
44
MOHAMMAD AZHAR
H NO 76 ST NO 8 PHASE 1 PAKISTAN TOWN ISL LASANI GARDEN STREET MANZOOR VILLA BOSAN ROAD MULTAN NEAR BANK AL FALAH ABDALI ROAD MULTAN 144 B MODEL TOWN GUJRANWALA BUKHARI ST JAHANGEER ABAD DAK KHANA KHAS TEH DISTT
61101-5768787-9
GHULAM MUHAMMAD MANZOOR AHMED
3,498,852
1,458,385
4,957,237
748,852
1,517,818
2,266,670
45
ASIF MANZOOR
36302-3622052-1
2,199,783
934,095
3,133,878
549,283
934,095
1,483,378
46 47
ASIF JAVED SYED SHAHID HUSSAIN SHAH
34101-7602766-3 36302-0201449-5
ABDUL HAMEED SYED TAJ MUHAMMAD SHAH MOHAMMAD SIDDIQUE
1,996,514 1,198,665
835,538 519,531
2,832,052 1,718,196
496,514 358,665
835,538 519,531
1,332,052 878,196
48
MUHAMMAD ASLAM ANJUM
CHAUDHRY FARM SERVICES,NAZIR COLONY BUDHLA ROAD TEHSIL MULTAN
36202-0412676-9
1,499,999
426,911
1,926,911
369,999
511,904
881,904
49
RIASAT ALI
H NO.P-12 MAIN ROAD SARFRAZ COLONYNEAR ZEESHAN DYI MUHAMMAD ALI STREETNEAR NAVEED SIZING SAMANABAD ROAD
33100-1868667-1
NOOR HASSAN
3,394,450
1,386,755
4,781,205
1,184,450
1,386,755
2,571,205
50
M AZEEM
H # 7/33 FAZLIA COLONY FEROZEPUR ROAD LAHORE
35202-1129219-7
ABDUL RAHIM
6,799,561
1,814,192
8,613,753
5,005,898
182,572
5,188,470
51
S ASHRAF NASEEM
FLAT NO 502 A 5TH FLOOR ROYAL APPARTMENT KDA 1 SB
42201-0662704-4
SYED SEEM AHMED
5,299,772
2,166,372
7,466,145
4,085,602
159,420
4,245,021
52
FAKHAR ALAM
FAKHAR SPRAY CENTRE, OPPOSIT SABZI MANDI, RAILWAY ROAD, SHUJABAD
36304-2663317-7
MUHAMMAD HAROON
747,926
202,497
950,423
247,926
280,691
528,618
53
SHEIKH KHALID PERVAIZ
15 B NEW MUSLIM TOWN LHR
35202-6908260-3
SHEIKH MOHAMMAD ASHIQ
8,385,859
3,546,493
11,932,352
2,485,859
3,546,493
6,032,352
54
MIRZA AHMED TARIQ BAIG QAUID-E-AZAM ROAD KEHROR PACCA
36202-0468500-5
MIRZA ANWAR BAIG PIR BADSHAH GILANI
4,977,942
1,906,691
6,884,633
1,627,942
1,906,691
3,534,633
55
TAUSEEF GILANI
SUITE:2 MEZZANINE FLR SETHI PLAZA BLKA JINNAH AVENUE BLUE AREA ISLAMABAD
61101-9620730-7
5,987,197
1,699,354
7,686,551
1,587,197
2,091,351
3,678,548
56
SHAFQAT MAHMOOD
27/BHATTA LUDDAN ROAD VEHARI 067-3362913 T M TEXTILE INDUSTRIES CHAK# 204 RB NEAR OPP PTCL EXCHANGE FAISALABAD HOUSE#487/A, THANA CITY ROAD THATHI SHARQI CHINIOT, FAISALABAD H NO.208 ST NO.6 NEARBADSHAH GENERAL STOREAL MASOO P-842 MAIN BAZAR NEAR AMANULLAH MASJIDRAJA GHULAM H NO 214 KAUSAR BLOCK AWAN TOWN MULTAN ROAD LAHORE
36603-1416675-5
KHURSHEED AHMED CH FAQEER MUHAMMAD GAZANFAR ALI SHAH MUHAMMAD YOUS
1,549,395
551,994
2,101,390
1,016,790
8,554
1,025,343
57
TALAT MEHMOOD
33100-4223994-7
4,499,649
1,688,233
6,187,883
2,881,935
40,342
2,922,277
58
ZAFAR ABBAS SHEIKH
33201-4954100-9
2,671,941
1,029,093
3,701,034
801,541
1,029,093
1,830,634
59
ATTA ULLA
33100-5519829-1
2,424,591
810,406
3,234,997
363,641
912,726
1,276,367
60
M GHAFFAR KHAN
35202-2254456-2
MUHAMMAD HANIF KHAN
505,616
505,616
505,616
505,616
61
IRSHAD HUSSAIN KHAN
SUBHANALLAH TRDERS QUAID-E-AZAM ROAD KEHROR PACCA DISTT LODAHRAN
36202-0924563-9
MEHMOOD KHAN
1,964,903
642,449
2,607,352
686,903
729,658
1,416,561
72
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Name
Address
Principal
62
ASHIQ ALI KHAN
FLAT NO A 904 9TH FLOOR BELLE VIEW APPARTMENTS CLI 4-B GHALLA MANDI VEHARI 067-3364371
42301-0939649-1
ALI MUHAMMAD HALANI ZIR AHMED
6,998,284
2,860,661
9,858,945
2,398,284
2,979,536
5,377,820
63
MUHMMAD ASLAM
36603-1464238-5
1,040,914
745,498
1,786,412
312,234
745,498
1,057,732
64
NAEEM MEHBOOB
2-DISTRIBUTOR PLAZA MAHELAL ST NILA GUMBAD LAHORE
35201-1508356-7
MAHBOOB ELAHI
3,392,959
54,849
3,447,808
319,279
496,389
815,668
65
MUHAMMAD SHABBIR
CHAK NO 223 R.B ASA SINGH WALA D.TYPE COLONY
33100-4244480-7
HAJI ATA MUHAMMAD
2,267,328
338,975
2,606,303
555,508
555,508
66
MUHAMMAD IDRESS
P-263 ST 2 SARGODHA ROAD MUSTAFABAD FSD
33100-2484358-5
ABDUL LATIF
9,599,897
3,481,203
13,081,099
3,100,941
5,156,582
8,257,523
67
CH.MAQSOOD QADIR
5-6 KHYBER BLOCK FORTRESS STADIUM CANTT LAHORE
35201-8440455-7
CH MUSHTAQ AHMED
3,496,806
1,088,865
4,585,670
870,696
1,365,756
2,236,451
68
MIAN NASEER AHMED
GULZAR CENTRE GENERAL BUS STAND MULTAN
36302-0446997-5
HAJI MUHAMMAD AMIN
2,784,507
1,086,187
3,870,694
974,577
1,086,187
2,060,764
69
MUHAMMAD YAQOOB MALIK
HOUSE # 314 ,STREET # 65 ,A-8/3 ,ISLAMABAD .
61101-6198898-5
MALIK MUHAMMAD HUSSAIN
7,899,168
4,263,790
12,162,958
2,399,168
4,263,790
6,662,958
70
QAISER MEHMOOD
FINE TECH SR # 04, MOON ARCADE,OPP STAR GATE, SHAHRAH-E-FAISAL KARACHI.
42401-1993027-3
ABDUL GHANI
2,193,147
212,807
2,405,954
193,147
449,273
642,420
71
MUHAMMAD NAEEM
403-F SHAH RUKN-E-ALAM COLONY
36302-7188834-9
MUHAMMAD YOUNIS
3,038,495
776,190
3,814,685
758,407
1,167,864
1,926,271
72
SHAHID AKHTAR
H NO 17 LANE NO 6 LALA ZAR 1M RWP
37405-3928486-5
SHAHID AKHTER
1,850,912
783,818
2,634,730
200,912
783,818
984,730
73
MUKHTAR AHMED
105- GROUND FLOOR PAKISTN CLOTH MARKET LAHORE
35202-9914881-1
MUHAMMAD ISHAQUE (LATE)
9,799,836
4,156,351
13,956,186
3,299,836
4,281,198
7,581,033
74
SAEEDA MUSHTAQA PIRACHA
C 78 BLOCK 6 GULSHAN E IQBAL KARACHI
42201-4808759-6
MUSHTAQ PIRACHA
3,042,307
1,500,792
4,543,099
1,702,501
1,702,501
75
NASEER AHMED
H NO .5 MUGHALST NO.1 BOHAR SHAH ROAD CANTT NEAR JA SHOP NO.107-LG SADIQ TRADE CENTRE GULBURG-III LAHORE
35201-1512422-1
ALI AHMAD
999,234
409,701
1,408,935
249,234
409,701
658,935
76
MEHMOOD AHMED
613-C NEELAM BLOCK ALLAMA IQBAL TOWN LAHORE 190-FMULTAN ROAD NEAR CHWOKYATEEM KHANA LAHORE
35202-9153200-7
ALLAH RAKHA
1,823,730
86,906
1,910,636
182,330
361,685
544,015
77
MUHAMMAD IQBAL
PAKISTAN PESTICIDE QUAID-E-AZAM ROAD KEHROR PACCA 103-5/B-1 AL KARIM CHOWK TOWN SHIP LAHORE
36202-0965999-7
MUHAMMAD ZULFIQAR MUHAMMAD ALI KHOKHAR
3,074,934
905,025
3,979,959
1,174,839
661,787
1,836,626
78
ABDUL SATTAR
35202-8656843-9
1,304,084
347,880
1,651,964
325,890
496,807
822,697
79
MUHAMMAD IJAZ
NAZEER CORPORATION QUAID-E-AZAM ROAD KEHROR PACCA DISTT. LODHRAN
36202-0917529-7
MUHAMMAD WAZ
1,575,048
578,094
2,153,141
455,048
577,894
1,032,941
80
IMRAN RIAZ
AL-SHAFA HOSPITAL SATELLITE TOWN GUJRANWALA
34101-0525405-3
RIAZ AHMED SHEIKH
9,967,536
4,320,275
14,287,811
3,467,532
4,320,275
7,787,807
81
MALIK AKHTAR HAMEED
5 ILYAS STREET MUSLIM TOWN LAHORE
35202-1320077-7
MALIK HAMEED UD DIN
7,099,363
2,901,931
10,001,294
3,099,362
2,312,277
5,411,639
82
SAEED AKHTAR
90-B IQBAL ROAD VEHARI OFF/0673366373 RES/0673362047 HOUSE NO 25 STREET NO 4 CHAKLALA SCHEME III
36603-1461246-9
ABDUL HAMEED KHAN SARDAR SEER
6,356,702
3,074,724
9,431,426
2,856,702
3,185,979
6,042,681
83
SARDAR MOHAMMAD ZAHEER
37405-9498991-7
10,798,511
4,401,767
15,200,278
2,798,511
4,401,767
7,200,278
Annual Report 2011
73

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Name
Address
Principal
84
TARIQ MEHMOOD NAWAZ HOUSE NO.I89, STREET NO.08, MOHALLAH ALTAF GUNJ, JHAN
33102-1763840-5
MUHAMMAD WAZ
1,092,796
346,698
1,439,495
163,866
414,875
578,742
85
MUHAMMAD NAVEED YOUNAS
68-AL HAMD PARK ALLAMA IQBAL TOWNLAHORE SHOP NO.7 ASAD PLAZA DUBAI CHOWKMOON MKT ALLAMA IQBAL H.NO.66/3 N/B MOSQUE SAYYEDA FATIMA ZEHRA ANSAN COLONY MULTAN
35404-8542303-9
MUHAMMAD YOUS
7,987,353
1,733,145
9,720,497
1,596,921
2,366,412
3,963,332
86
HASSAN TEX
36302-9625490-7
ABDUL AZIZ
4,646,667
520,070
5,166,737
1,066,667
520,070
1,586,737
87
NAVEED AHMED
HOUSE NO. P - 1029/C 1-A NEAR GOVT. DEGREE COLLEGE ASGHAR MALL ROAD RAWALPINDI. 4419911/03005559900/4452541
37405-1218023-7
ABDUL MAJEED
3,786,099
1,520,152
5,306,251
586,099
1,631,908
2,218,007
88
AGHA FARRUKH RAHEEM 22 GROUND FLOOR RAJA CENTRE MAIN BOULEVARD GULBERG II LAHORE
35202-6104949-5
AGHA RAHIM UDDIN AHMED
2,694,332
1,057,092
3,751,424
942,332
1,144,197
2,086,529
89
MEHMOOD-UL-HASSAN
137 CHANDNI CHOWK AZAM CLOTH MARKET LAHORE
35202-2930749-3
GULZAR HUSSAIN
7,959,682
2,130,436
10,090,118
1,591,473
2,437,033
4,028,506
90
SHEIKH ABDUL QUDDUS
H. NO. 57, STREET # 39, SECTOR F-10/4, ISLAMABAD. 051-2110581/0300-8550991
61101-2111008-1
SHEIKH ABDUL RAUF
19,787,881
7,444,710
27,232,591
3,650,814
3,650,814
91
ZULFIQAR BUTT
QUAID GIRLS COLLEGE MOHALLAH ISLAMABAD NAI ABADI SIALKOT
34603-2721874-9
GHULAM MUSTAFA BUTT
4,506,305
214,781
4,721,086
450,630
819,678
1,270,308
92
NAYA SAVERA
NAYA SAVERA CHUNGI NO 14-A, BAHAWAL PUR ROAD MULTAN
36302-0271444-5
SULTAN AHMED
1,116,183
423,458
1,539,641
728,818
29,244
758,062
93
M.ISHFAQ JAMIL
MIAN COMMUNICATION IST FLOOR NOKIA TOWER USMAN MARKET HALL ROAD LAHORE. HALL ROAD, LAHORE
35201-7706290-9
MIAN MUHAMMAD JAMIL
14,231,419
5,931,559
20,162,978
4,731,419
6,137,280
10,868,698
94
KHALID MAHMOOD
HNO 119-B KH-E- SHEHAR PHASE VI PAKISTAN DEFENCE OFFICER COOPERATIVE HOUSING SOCIETY KARACHI.
42301-0856668-9
MUHAMMAD MUBEEN SIDDIQUI
10,270,000
4,861,079
15,131,079
3,570,000
4,912,029
8,482,029
95
MUHAMMAD NAZEER
M/S AMMAR ENTERPRISES B-56 BLOCK 10A 01 GULSHAN-E- IQBAL KARACHI
42101-3016323-1
HIDAYAT ULLAH
14,995,932
5,661,788
20,657,719
4,999,664
8,046,736
13,046,400
96
M SALEEM
OFFICE NO.3 GROUND FLOOR AKASH PLAZA BEHIND DEWAN SALMAN MOSQUE F-10 MARKAZ ISLAMABAD PLOT 470 C P BERAR SOCIETY BLK 7 AL MADINA ARCADE FLAT 7 4TH FLOO DHORAJI COLONY KARACHI HOUSE# 88/F/2 BLOCK# 2 P.E.C.H.S KARACHI HOUSE # IH-43, AIR FORCE OFFICERS HOUSING SCHEME, FAISAL CONTONMENT
37405-2387449-1
ALLAH BAKSH
1,698,265
736,070
2,434,335
423,265
736,070
1,159,335
97
MUHAMMAD IRFAN
42201-0666723-3
MUHAMMAD ILYAS
437,730
904,636
1,342,366
98
MUHAMMAD IMRAN
42301-8236466-3
ABDUL AZIZ
1,895,260
2,203,061
4,098,321
99
MUNA ANIS
42201-3236983-0
ANIS FAROOQI
2,871,714
2,844,950
5,716,665
100
MOHAMMAD RAFIQ RAJPUT IQBAL AHMED SHEIKH
H.NO. 59, BLOCK 6, PECHS,
KARACHI
42201-7017197-3
KALO RAJPUT
3,336,345
3,336,345
101
HOUSE C 215 BLOCK 6 F B AREA KARACHI
42101-1542327-7
NOOR AHMED SHEIKH SIBTE HASAN ABIDI
420,470
1,262,186
1,682,655
102
S.M ABBAS HASAN ABIDI
C-14, 5TH FLOOR PALM, BEACH HOME BLOCK-2, CLIFTON KARACHI
42301-7832533-3
2,474,970
2,974,827
5,449,797
103
SYED SAIR RAZA
AL MANZAR B4 SECTOR Z6 GULSHANE MAYYAMER SCH 45
42101-6027969-3
SYED ASAD RAZA
1,971,314
3,068,834
5,040,148
74
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Annexure-1
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Name
Address
Principal
104
ARSHAD SAEED EFFENDI
AVENUE CENTRE STRACHAN ROAD ADJACENT PIA HEAD OFFICE
42301-0875872-9
SAEED ULLAH EFFENDI
1,361,744
2,015,289
3,377,033
105
MASHOOD UL HASSAN
R-11, ABID TOWNGULSHAN E IQBALBLOCK NO 1 D-41, ST 8-A 12ABID S & R, F.B AREA
42201-6618874-9
SHAHID HUSSAIN
1,027,480
1,198,778
2,226,259
106
MOHYED
H# 75-A LANE # 7-B GULISTAN COLONY RAWALPINDI HOUSE#48/3 16TH LANE KHAYABAN-EBADBAN PHASE 7 DHA KARACHI
37405-0316283-9
SHOAIB ALI
7,349,177
307,087
7,656,264
1,101,877
1,430,903
2,532,781
107
KHALID MUNIR VOHRA
42301-2557684-3
ELAHI BUSKH
3,192,622
3,198,788
6,391,410
108
IMRAN ALI
IMRAN BROTHERS 4-PURI HOUSE WEST WHARF ROAD KARACHI
42301-2295802-9
SAJAWAL HUSSAIN
1,319,066
1,444,630
2,763,695
109
HAMID RASOOL KHAN
LH # 10A ST # 2A PRAHIM NAGAR RIWAZ GARDEN LAHORE
35202-0278502-7
MOHAMMAD RAFIQ KHAN
14,499,890
5,933,211
20,433,101
4,949,890
5,933,211
10,883,101
110
NAZIR AHMED KHAN
H-16 BLOCK A PIA HOUSING SOCIETY NEAR JOHAR TOWN LAHORE
35301-1867471-7
AHMED KHAN
3,167,080
45,082
3,212,162
316,708
567,259
883,966
111
HASSAN MAJID
19-A, NEW AWAMI AUTO MARKET BADAMI BAGH LAHORE
35202-5362446-1
ABDUL MAJID
4,957,636
72,519
5,030,154
3,612,829
51,637
3,664,465
112
ZAFAR IQBAL BUTT
H # 2-SF NAZIR APPARTMENTS BLOCK 7 KASHMIR ROAD TNT COLONY RAWALPINDI ISLAMABAD
37405-0239263-7
SIRAJ UDDIN BUTT
292,500
540,543
833,043
113
MUHAMMAD NADEEM BUTT
H # 29/2 ST # 01 SHAHIGAN COLONY RAH E AMAN,NEW LALAZAR ISLAMABAD
37405-9719132-9
MUHAMMAD HANIF BUTT
1,015,585
1,040,376
2,055,961
114
IJAZ PASHA
HOUSE NO. 145, STREET NO. 6 ASKARI X
61101-1572643-1
GHULAM ABBAS PASHA
1,397,109
1,606,850
3,003,959
115
ZEESHAN HAIDER SHEIKH H NO 25 AWAMI ST NO 1 SANDA KALAN
35201-5135642-9
FAIZ ALI SHEIKH
5,999,864
842,827
6,842,691
1,999,864
842,827
2,842,691
116
ZAKI
21-C, WARIS COLONY WAHDAT ROAD LAHORE H NO 15 ST 48 ISLAMABAD COLONY SAMANABAD 7595883/03009423175/7555141 LAHORE
35202-1138968-3
MUHAMMAD AHMED RAB WAZ
4,019,696
1,140,807
5,160,503
984,496
1,470,521
2,455,017
117
TAHIR NAWAZ
35202-3697560-9
3,633,032
3,398,612
7,031,644
2,133,032
3,398,612
5,531,644
118
ISHTIAQ AHMED ANSARI
WADALA ROAD MOHALLA BANWALA DASKA KALAN DASKA
34601-9908260-1
SA ULLAH
7,233,045
444,359
7,677,403
722,000
1,273,772
1,995,771
119
ZAFAR HUSSAIN
H# 4001 MOH WALYAT NEAR PUL SNAWALA HASSAN PARWANA ROAD MULTAN
36302-0120873-5
MUHAMMAD HUSSAIN
1,949,940
797,070
2,747,010
579,940
830,192
1,410,132
120
MR MALIK MUHAMMAD ASLAM
517 AMMAR BLOCK NASHTAR COLONY FEROZ PUR ROAD LAHORE
35202-2760836-3
MALIK AFSAR KHAN
839,707
839,707
848,523
205,173
1,053,696
121
35202-2760836-3
MALIK AFSAR KHAN
823,496
823,496
829,992
169,019
999,011
122
MR FAYYAZ ABDUL MAJEED
ABDUL MAJEED & CO 405 4TH FLOOR GUL TOWER I.I CHUNDRIGAR ROAD
42301-0560282-3
A MAJEED
371,646
12,210
383,856
411,593
103,778
515,371
123
MR MUHAMMAD IQBAL SAHTO
33/1/11 8 GIZRI LANE PHASE-4 D.H.A
42301-2758354-3
MUHAMMAD SAFFAR SAHTO
34,081
34,081
510,827
153,307
664,134
124
MR USMAN MASOUD
177 - A , AHMED BLK NEW GARDEN TOWN LAHORE
35202-5483047-7
MOHAMMAD MASOOD
985,457
196,258
1,181,715
1,248,812
1,248,812
125
MR SHEIKH MUBARIK ALI
SUNSHINE PAPER STORES 6 NOOR CHAMBER BANGALI GALI GUNPAT RD LAHORE
35200-1434279-9
SHEIKH KARAMAT ALI
411,335
411,335
441,372
140,760
582,132
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126
NADEEM ISMAIL
41-B COMMERCIAL AREA CAVALRY GROUND LAHORE
35202-5880308-9
SH M ISMAIL
907,935
138,770
1,046,705
909,965
187,271
1,097,236
127
SHEIKH HAFEEZ UR
SHOP # U 819 KALAN BAZAR NEAR URDU BAZAR RAWALPINDI RAWALPINDI
37405-2542055-5
SHAIKH AZIZ UR REHMAN
363,174
216,181
579,354
337,933
242,262
580,194
128
SYED WASIF ALI
270/Q L.C.C.H.S DEFENCE LAHORE CANTT LAHORE
35201-7183727-3
SYED ABDUL ALI SHAH
578,558
107,894
686,451
546,099
105,023
651,122
129
M ILYAS
LATIF MEDICAL CENTRE GR FLR TRADE CENTRE F 11 ISLAMABAD 03
61101-5058257-7
ABDUL LATI F
478,483
12,198
490,681
471,764
78,190
549,954
130
I M MIRZA
40 D 3 WAPDA TOWN LAHORE
35202-7808379-7
AL HAJ GHULAM MOHAMMAD M SIDDIQUE
499,699
12,660
512,358
501,729
82,284
584,013
131
KHALID MEHMOOD
M 1901 NEAR GUL NOOR HOTEL MURREER ROAD RAWALPINDI
37405-0214971-9
582,000
62,062
644,062
584,030
109,443
693,473
132
JAMIL AHMAD
29/195 ALLAUDDIN ROAD, ST 3 LAHORE CANTT.6672741 43/7C BLOCK 6 P.E.C.H.S KARACHI
35201-8529440-9
A. A. REHMAN
544,153
13,993
558,146
597,856
96,778
694,634
133
S IMDAD SHAH
42201-0763835-5
GHULAM MUHAMMAD SHAH MALIK FAZAL HUSSAIN SYED MAHMOOD BOKHARI RASHEED AHMAD MOEED ASGHAR KIDWANI SHAIKH ABDUL REHMAN
954,743
77,715
1,032,458
429,743
97,778
527,521
134
NAEEM FAZAL
7/H II WAPDA TOWN LAHORE 5185068
35202-4657678-9
735,924
113,965
849,888
735,924
141,617
877,541
135
S FAIYAZ MEHMOOD
HOUS ENO 269-W D.H.A. PHASE 3 LAHORE
35201-2430660-7
449,567
11,317
460,884
438,077
73,503
511,580
136
A RAHSID
93 CIRCULAR ROAD LAHORE
35202-2882229-3
459,219
13,888
473,107
439,345
82,415
521,760
137
MOEED ASGHAR
70/A 13TH SOUTH STREET PHASE II DHA KARACHI RAHMAN & COMPANY RAHMAN CENTRE PLAZA SQ M.A.JINNAH RD KARACHI 7724740
514-49-033955
491,899
81,279
573,178
491,899
82,533
574,431
138
SHEIKH JAMIL
42301-0895746-7
159
159
548,130
89,464
637,594
139
S HASAN JAMAL ZAIDI
FRITZ COMPANIES 21-A BLOCK-H GULBERG-II LAHORE-5764581-5
270-58-510150
HASSAN JAMAL ZAIDI
904,509
22,837
927,346
876,896
145,650
1,022,546
140
QAZI TAMMAM
103 1ST FLOOR LATIF PLAZA FEROZEPUR ROAD, ICHHRA LAHORE
35202-2409818-7
QAZI ALTAF ULLAH
575,144
16,535
591,679
624,515
114,912
739,427
141
M ADNAN KHAN
HOUSE# 37 I LANE# 1 TULSA ROAD LALAZAR COLONY CANTT RAWALPINDI HOUSE # D-2, BLOCK 13/D-1, GULSHAN-EIQBAL, KARACHI
37405-4064950-7
M SHER KHAN
499,280
68,912
568,192
499,280
84,178
583,458
142
SYED NASIR RAZA
42101-1739755-1
S FURZAND RAZA MOHAMMAD MASOOD
989,710
28,633
1,018,343
969,944
180,487
1,150,431
143
USMAN MASOUD
35202-5483047-7
459,518
69,831
529,349
459,518
94,343
553,861
144
KHAWAJA IZHAR ULHAQ
89 MECLEOD ROAD, LAHORE
35202-2812360-5
KHAWAJA CHIRAG UL HAQ
876,928
25,390
902,318
865,108
108,483
973,591
145
AASHIQ HUSSAIN BHAT
132 C 1 FAISAL TOWN LAHORE
270-52-599634
AASHIQ HUSSAIN BHATTI TAJMUL HASSAN MALIK
469,582
88,506
558,088
469,582
91,346
560,928
146
WASEEM PASHA
HOUSE # 107 STREET 11 WESTRIDGE 1 RAWALPINDI
37405-6350019-1
603,941
15,498
619,439
647,726
107,863
755,589
147
SYED MARGHOOB ALAM
5TH FLOOR IMTIAZ PLAZA 85 SHAHRA E QUAID I AZAM LAHORE
35202-2498982-3
SYED MAY ALI
599,207
14,999
614,206
593,088
98,917
692,005
148
FAIZ NABI
18/H ASKARI III SCHOOL ROAD KARACHI CANTT KARACHI PLOT NO 54 BLOCK-4 KARIM PARK
42301-7156177-9
SAJJAD NABI
551,086
82,449
633,535
495,627
104,268
599,895
149
MUHAMMAD SIDDIQUE
35202-2521079-1
MIAN QAMAR UDDIN
573,130
47,370
620,499
438,192
73,172
511,364
76
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Address
Principal
150
MUHAMMAD SHAHID
515B BLOCKSABZAZAR SCHEME MULTAN RDLAHORE SHAHID GARMENTS RIAZ BUILDING RANGMEHAL LAHORE
35202-2301559-1
MOHAMMAD ISHFAQ
452,607
25,047
477,653
452,607
74,151
526,758
151
ZAFAR IQBAL
L/893SECTOR 5A1NORTH KARACHIKARACHI CD 388/389GABOL TOWNSECTOR 16/BF.B.AREAKARACHI 247/B BLOCK 6 P.E.C.H.S. KARACHI KARACHI FLAT NO K-158TH FLOORMAYFAIR CENTRE SADDARKARACHI SUIT NO 55HASHMI ELECTRONICS MARKETA HAROON ROAD S
42101-1502481-9
MUNWAR ALI
483,992
11,921
495,913
455,543
74,115
529,658
152
ASIF JOHN
42000-7486178-5
JAN KHAN
908,205
23,053
931,258
935,902
152,998
1,088,901
153
WAHEED AHMED
246-73-368459
MOHAMMAD ARSHAD
494,792
78,762
573,555
494,792
92,630
587,422
154
ZEESHAN AHMAD
16-BROYAL ENCLAVEFLAT NO 47SECTOR G5 DIPLOMATIC E 24 MEZZANINEMUHAMMADI PLAZANEAR AMERICAN EXPRESS B
61101-5465682-5
IKRAM ZAFAR
493,755
54,408
548,164
493,755
81,883
575,638
155
ABDUL KABIR BUTT
H NO 194ST NO 7MARGALLA TOWNISLAMABAD SHOP NO 7,868EJINNAH AVENUEPAKTEL PLAZA, BLUE AREA 8 ABBOT ROAD LAHORE
260-61-539717
GHULAM QADIR BUTT
477,640
54,037
531,677
443,400
74,648
518,049
156
MUHAMMAD IRFAN
35202-0368453-7
CHAUDHRY MOHAMMAD YOUSAF HAJI ZIR AHMED
498,913
13,518
512,432
500,999
81,712
582,710
157
AURANGZEB
PASRUR ROAD, HNO 12/345MUHALLAH BABAY BERI GHALA MANDIOLD CHOWK JUNDAR BAZARHAJI PURA ROAD, K
34603-9382539-1
419,250
186,346
605,596
405,287
243,702
648,988
158
NASIR MANZOOR
H # 163ST # 63SECTOR G-7/2-4ISLAMABAD H # 589LABOUR COLONYIBN E SINA ROADG 9/3ISLAMABAD
61101-2892226-9
MANZOOR AHMED
499,395
68,963
568,359
499,395
84,232
583,628
159
KHALID IQBAL
210 PAK BLOCK ALLAMA IQBAL TOWN LAHORE
35202-8309522-5
CH MUHAMMAD IQBAL
494,807
15,138
509,945
494,807
91,349
586,156
160
ARSHAD MEER
FLAT NO 402, 4TH FLOORCHAPPAL BEACH ARCADE 2BLOCK H NO 4, SHOP NO 2 AREA 5/D, BLOCK 91LANDHI NO 6 KARACHI
42301-9789752-3
MIR GHULAM MUHAMMAD
491,642
491,642
499,972
92,724
592,696
161
SHAKAIB BAQIR
384-FF DHA LHCDEFENCE HOUSING SOCIETYLAHORE 384-FF DHA LHCDEFENCE HOUSING SOCIETYLAHORE
35200-1453915-9
QAISAR HUSSAIN
473,684
63,830
537,514
473,684
90,382
564,066
162
ASAD ALI KHAN
H # ZB-317/27ST # 1GULISTAN FATIMA COLONY MOHALLA A MAIN MURREE ROAD RAWALPINDI GENERAL HOSPITAL
37105-0278187-3
SHAIR MUHAMMAD
480,872
89,278
570,150
480,872
104,422
585,295
163
ARSHAD ALI
H NO.135 SHAHID TOWNMAIN ST NO.1GHAZI ROADCANTT M 14-J COMMERCIAL AREA MUGHAL MKTDHA LAHORE
35201-1632805-7
WALI MUHAMMAD
376,513
376,513
499,670
89,650
589,319
164
MUHAMMAD ABRAIZ ABBASI
BASEMENT NO 4 FEROZE CENTRE 14-D BLUE AREA ISLAMABAD
37405-9146604-1
ABDUL HAMID KHAN
409,648
124,827
534,475
396,655
134,323
530,978
165
MUSHTAQ ALI JIVANI
FLAT NO 106, ML PARADISEBURGARI BAZAR NISHTAR PARK ROOM NO 701, 7TH FLOORMUSTAFA CLOTH MARKET MONTANDA A182 GULSHAN-E-RABIA, BLOCK 13D2, GULSHAN-E-IQBAL KARACHI,
42301-0847957-1
HUSSAIN ALI
498,036
27,342
525,378
490,565
80,481
571,046
166
ADAM MUHAMMAD
42000-0364832-3
MOHAMMAD BUDHANI
486,433
12,468
498,901
500,931
81,838
582,769
167
SHAN ALI CHAUDHRY
35-SHADMAN COLONY #1, SHADMAN LAHORE
35202-1262093-5
CHAUDHARY GHULAM RASOOL
499,849
77,005
576,853
485,169
106,623
591,792
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Name
Address
Principal
168
MUHAMMAD ARSHAD
MAUZA RAIWIND KHURD MAIN ROAD CHOWKRAILWAY ROAD RAIWIND
35202-2770335-7
MUHAMMAD SHAFIH
443,837
41,317
485,155
443,837
96,086
539,923
169
SHAHZAD IQBAL KHAN
HOUSE NO 1853 C-4, SECTOR 16 ORANGI TOWN KARACHI
42401-2265854-1
AYUB KHAN
489,701
40,702
530,403
493,416
82,041
575,458
170
ZAFAR MEHMOOD ABBASI OFF. 5, 1ST FLOOR, KALA KHAN SHOPPING CENTER SHAMASABAD
37404-4623469-9
MOHD ARIF KHAN
393,306
93,084
486,390
387,317
116,402
503,718
171
MR CHAUDHRY G QUMAIS 731,ST NO 74 G-10/4 ISLAMABAD. 256131
61101-3216595-5
CHAUDRY NIZAMUDDIN
489,086
15,280
504,366
478,258
142,608
620,867
172
MR WASEEM P TAJAMMAL HOUSE NO 107, ST 11 WESTRIDGE 1, RAWALPINDI.
37405-6350019-1
TAJMUL HASSAN MALIK
364,974
13,662
378,636
400,433
129,249
529,682
173
MR KHAWAJA IZHAR ULHAQ
292 M BLOCK MODEL TOWN EXTENTION LAHORE
35202-2812360-5
406,685
13,130
419,815
424,970
118,019
542,989
174
MALIK HADI HUSSAIN
152-F,MODEL TOWN LAHORE. 5830991
35202-2087176-9
MALIK FAZAL U DIN MOHAMMAD FAROOQ DOSA
473,124
114,079
587,203
475,212
129,006
604,218
175
MR ISMAIL DOSSA
RELIANCE INDUS.(PVT)LTD PLOT 23, SECTOR 23 KORANGI ND.AREA, KARACHI
42301-3186357-9
434,146
434,146
435,345
140,511
575,856
176
MR AMER SAEED
LAIBA LOOK INTERNATIONAL YAZDANI ROAD RIAZABAD HARBANS PURA NEAR PEPSI WARE HOUSE BEST BRANDS INC 181-CCA PHASE IV DHA C 5 SHADAB COLONY TEMPLE ROAD LAHORE
35201-6110862-9
SAEED AHMED
247,542
247,542
371,673
196,432
568,106
177 178
MS KRIS STRATE MR AAMIR HUSSAIN CHAUDHRY.
84035-2466001-2 35202-0883188-5
DONN STRATE CHAUDHRY GHULAM HUSSAIN
501,644 493,803
85,417 -
587,061 493,803
508,140 494,358
133,626 161,690
641,766 656,048
179
MALIK RAB NAWAZ NOON MALIK RUB NAWAZ NOON H NO 27-C, CIVIL LINES
37405-0490370-3
MALIK MOHAMMAD SADIQ
515,569
49,065
564,634
180
MR. TAHIR IQBAL CHEEMA 135-SADAR BAZAR AREA
34104-9850879-1
SAJJAD ALI CHEEMA SHEIKH ABDUL HAMEED
498,728
498,728
497,355
170,314
667,669
181
MR SHEIKH ABDUL HAFEEZ
PUNJAB ENGINEERING SERVICES PV 6 -R B12 OPPOSITE SAEED MANZIL M. A. JINNAH ROAD
42301-7311703-1
462,794
14,710
477,505
444,704
112,864
557,568
182
MR RAJA HAMMAD ARSHAD
PIONEER ELECTRONICS OFFICE#31-A AZHAR SHAHEED MARKET KASHMIR ROAD SADDAR RAWALPINDI
37405-7897890-5
RAJA ARSHAD KAMAN
459,191
459,191
483,646
125,910
609,556
183
SUALEHA BHATTI
WINNING EGDE C-16 HABIB CENTER B LOCK-5 CLIFTON
516-62-075883
BHATTI
491,199
32,724
523,924
481,993
83,785
565,779
184
MR ASIM EJAZ MALIK
369-AA PHASE-4 D.H.A LAHORE CANTT.
273-88-92227
MOHAMMAD IBRAHIM MALIK
565,487
288
565,775
185
MR AAMIR MANZOOR CHAUDHRY
NEW 601 CERAMICS AND GELASS IN Q UATABPUR OLD SHUJABAD ROAD
36302-0371505-7
CH MANZOOR AHMED
438,011
50,320
488,332
448,528
118,938
567,465
186
SHAHBAZ ALI
FUTURE MOBILE FUTURE MOBILES, 12 -G HAFEEZ CENTER MAIN BOULEVARD GULBERG LAHORE
35202-7637509-5
CHAUDHRY MUHAMMAD RAFI
387,950
119,936
507,886
187
MR NAYYER IQBAL KHAN
A-101 PRIME RESIDENCY CL-10 CIVIL LINES KARACHI LOYAL SPORTS PVT LTD INDUSTRIAL ESTATE SIALKOT
42201-3251081-5
IQBAL ZAHIR KHAN SHEIKH MOHAMMAD SARWAR
434,629
69,689
504,317
442,886
111,237
554,123
188
MR M WAQAS SANDAL
34603-2150488-5
595,100
595,100
609,861
609,861
78
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189
Name
MUHAMMAD ARSHAD
Address

33100-8743938-5

MOHAMMAD SHARIF TAJ MUHD
Principal
HOUSE NO 632 GALI NO 3 AYUB COLONY
480,018
32,975
512,993
491,891
126,895
618,786
190
IJAZ AHMAD
C/O DREAM CAR PARK PLAZA SHOP NO .1,2,3, & 4 FAZAL-E-HA ROAD BLUE AREA OPP POLYCLINIC HOSP. MURU GROUP INTERNATIONAL 177-A, AHMED BLOCK NEW GARDEN TOWN H NO 12, BLOCK C MODEL TOWN, FAISALABAD
37405-3103828-7
480,159
15,644
495,803
488,548
54,166
542,714
191
MR USMAN MASOUD
35202-5483047-7
MOHAMMAD MASOOD MOHAMMAD IRSHAD ANWER
493,142
90,820
583,961
497,318
121,867
619,184
192
MR RIZWAN ARSHAD
33100-5554834-9
533,468
41,934
575,402
545,816
136,773
682,589
193
NOUMAN ANWER
51-A NISAR ROAD ST.4 CANTT
274-87-331357
474,786
64,800
539,586
481,282
107,363
588,645
194
MR SYED KHAWAR ALI
APEX COMMUNICATION 32-1, C/1 BLOCK 6 PECHS APEX HOUSE
42201-4032116-5
SYED ASHIQ HUSSAIN
493,993
79,073
573,066
496,081
94,437
590,519
195
TARIQ SOHAIL
TARIQ SOHAIL 'HOUSE NO 1001 STREET NO 105 I-10/4
61101-1802394-9
MUHAMMAD SHARIF
498,935
123,924
622,860
501,023
139,595
640,618
196
MR SETH NISAR AHMED
HON. CONSUL OF THE REP. OF KAZHAKHSTAN 196-L-MODEL TOWN EXTN
35202-2792709-9
MOHAMMAD LATIF
662,171
82
662,254
197
HAROON BASHIR
PLOT NO 90, STREET NO 7 SECTOR# I-10/3
61101-1991102-7
BASHIR HUSSAIN
397,902
12,932
410,834
432,307
123,457
555,764
198
MR FAIZ UL HASAN
W S FORMS QURESHI STREET RORAS R OAD NEAR MAKKI MASJID NEW MUBARA K PURA
34603-7209250-9
CHUDHARY MUHAMMAD ISHAQ
392,833
25,080
417,913
419,016
100,506
519,522
199
MR MUHAMMED ISMAIL F RELIANCE INDUSTRIES PVT LTD PLT 23 DOSSA SECTOR-23 K.I.A MAIN ROAD NEA R TOYOTA SHOW ROOM
42301-3186357-9
MOHAMMAD FAROOQ DOSA
888,576
888,576
889,434
889,434
200
TARIQ MEHMOOD
TARIQ TRADERS 26-ALLAMA IQBAL ROAD LAHORE
35201-4698183-9
CHAUDHARY GUFTAR AHMAD
478,665
14,975
493,640
483,268
214,236
697,504
201
WAQAS SHAHID
496-F JOHAR TOWN
35202-1718192-9
SHAHID FAROOQ
501,488
131,100
632,588
503,576
146,135
649,711
202
MR SHAHZAD IQBAL KHAN HOUSE NO 1853 SECTOR 16 C-4 STREET 9 OPPOSITE ASIA GROUND ORANGI TOWN GULSHAN-E-BIHARE
42401-2265854-1
AYUB KHAN
504,627
87,608
592,235
513,443
119,372
632,814
203
KASHIF ALI
721 D FAISAL TOWN
35202-2685153-5
SH MUHAMMAD ASHRAF
397,182
397,182
399,532
138,976
538,508
204
MUHAMMAD ALMANI
FLAT NO 374 BLOCK ""G"" SULTANABAD COLONY PLOT NO 61 GULBAR NO 1
42101-0730230-9
SIKANDAR ILWANI
473,598
37,897
511,495
485,647
131,583
617,230
205
WAQAS RASHEED
SHOP NO.28 GROUND FLOOR IBRAR BUSINESS CENTRE WAHDAT ROAD LAHORE
35202-6513190-5
ABDUR RASHEED
423,883
80,502
504,385
428,059
107,525
535,585
206
ANWAR MANJI
F-16 EVERSHINE SQUARE BLOCK 10 GULSHAN E IQBAL NEAR SINDBAD NEAR SINDBAD HATF REAL ESTATE SERVICES OFFICE NO 1, 2ND FLOOR LORDS TRADE CEN TER SECTOR F-11 MARKAZ
42101-7570468-7
HYDER ALI
462,357
28,994
491,351
456,784
125,583
582,367
207
MR ZEESHAN AHMED ZAFAR
61101-5465682-5
IKRAM ZAFAR
493,469
97,547
591,016
497,645
108,794
606,439
208
MIAN MOHAMMAD IQBAL
101B GULBERG II
35202-4847431-7
MUHAMMAD SHARIF WAHEEDULLAH
408,316
13,478
421,794
479,686
127,088
606,774
209
GOHAR ALI
I-G TRADERS 11/15 CANTONMENT PLA ZA THE MALL RAINBOW JEWELLERY HOUSE SH NO 12 3 PAK MARKET SHAH ALAM MARKET
90403-0150038-7
503,930
72,733
576,663
519,043
44,727
563,771
210
ALI KAZIM
35202-3042612-1
ASIF ALI
490,101
21,854
511,955
487,141
164,120
651,261
Annual Report 2011
79

Annexure-1
Sr. No.
Name
Address
Principal
211
YASMIN MAJID
H:6- STREET NO 19 F-6/2
61101-8190819-6
KHAWAJA FAROOQ MAJID
459,949
459,949
470,246
151,644
621,891
212
MR AHMED EL RHAIDI
EMBASSAY OF THE KINGDOM OF MOR 6 GOMAL ROAD E/7 96-E MODEL TOWN RAWAL ENTERPRISES F 2712 MOTI BA ZAR INSIDE MASTI GATE BANGLOW 9 CRYSTLE BANGLOW GAZI ABBASD BEHIND EID GHAH MULTAN MULTAN
A002895
518,038
32,695
550,733
502,734
64,596
567,331
213 214
MS UZMA ASAD IFTIKHAR AHMAD
35202-7940382-4 35202-2935494-1
MIAN ASAD MUNIR MUHAMMAD HUSSAIN S SAJID HUSSAIN JAFRI
503,292 474,997
23,651 47,062
526,943 522,059
497,393 484,403
172,284 117,803
669,678 602,206
215
S FARHAT ABBAS JAFARI
270-88-434045
352,232
352,232
540,619
79,503
620,122
216
SYED SABAHAT ALI SHAH FIRST FLOOR SOFTWARE TECHNOLOGY PARK 1 AWAMI MARKAZ, CONSTITUTION AVENUE F-5/1 ISLAMABAD ISLAMABAD MUHAMMAD ARIF H NO 77-K, BLOCK NO 02 GHAZALI ROAD, P.E.C.H.S PLOT NO 57, SECTOR NO 24 KORANGI INDUSTRIAL AREA H # 106-R, PARADISE HOMES, ABUL HASSAN ASPAHANI ROAD, KARACHI R-294,RAFI BANGLOW MALIR NEW BABAL MARKET KARACHI WORLD STYLE SKIN TREATMENT SHOP# 1 REHMAT PLAZA COMMERCIAL MARKET NEAR N B P RAWALPINDI 49 BABAR BLOCK NEW GARDEN TOWN HAROON STREET LAHORE SARDAR COOL CORNER SHOP# 15 STATION ROAD NEAR OPPT HABIB HOTEL HYDERABAD HOUSE# 430 BLOCK-M MODEL TOWN LAHORE 30-ICI TOWN SHIP BUTT CHOWK H # 10/A, ST # MOHALLA SIDDIQUE GUNJ SHER SHA WASON PURA LAHORE HAZRAT KARMAN WALA UNITY CORNER SHOP# A-4 ABUL HASSAN ISPHANI ROAD BLK-4A KARACHI H # 31 ST # 24/A MUHALLAH FAZAL STREET BANK COLONY LAHORE 3-A AKBER WALI STREE NA NA LAHORE
42501-2070278-5
SYED FARASAT ALI SHAH
553,663
18,007
571,670
588,292
588,292
217
42201-1296802-9
ABDUL HAMEED
636,518
636,518
619,435
37,933
657,367
218
SYED KASHIF SAGHEER ZAIDI SYED JOHAR ABBAS ALI SHAH MUHAMMAD PERVAIZ HAYAT
42201-3643060-5
SYED SAGHIR HUSSAIN ZAIDI SYED SIR ABBAS ALI SHAH MUHAMMAD HAYAT
546,518
7,222
553,740
475,459
77,896
553,356
219
42201-7228380-9
515,364
5,867
521,231
497,885
50,245
548,131
220
37405-9731825-3
909,997
47,107
957,104
959,996
959,996
221
RAJA RIAZ AHMED
210-65-856041
RAJA MHD HUSSAIN ZAR MOHD URF TALIB
642,000
642,000
222
SARDAR KHAN
41303-7483159-9
528,682
20,797
549,479
556,183
556,183
223
ZUBI ARSHAD
37405-0229152-4
MALIK ZIA MAHMOOD RAZA HUSSAN SHEIKH MUHAMMAD SHAREEF IRAHAD MEHMOOD
796,279
9,401
805,680
766,662
68,485
835,147
224 225
SHAHID RAZA MUHAMMAD JAVAID IQBAL WAJID MEHMOOD
35202-0855588-3 35202-9496484-9
497,771 502,907
10,974 13,173
508,745 516,080
1,008,673 469,412
18,540 35,851
1,027,214 505,263
226
42201-5095551-1
477,132
12,290
489,422
507,036
507,036
227
MUHAMMAD AJMAL
35202-2680859-3
MUHAMMAD ASHRAF SHAH MOHAMMAD MUHAMMAD ASLAM KHAN DURANI SAEED AZHAR ALI SHAH CH M BOTA
626,626
626,626
228
MUZAFFAR ALI
35302-4020038-3
510,058
510,058
458,616
43,153
501,769
229
AYUB DURRANI
1-3/A 100 HABIB PLAZA FAZAL E HAQ ROAD BLUE AREA ISLAMABAD
61101-3789412-9
14,939,248
5,228,274
20,167,522
12,013,194
12,013,194
230
SYED ATHER ALI SHAH
HOUSE NO 170-BB PHASEIV D.H.A LAHORE
35201-1587734-3
6,422,227
192,168
6,614,395
1,386,904
1,386,904
231
MUHAMMAD ASHIQ
177 KHYBER BLOCK ALLAMA IQBAL TOWN LAHORE AHMED PLAZA OFFICE # 1 2ND FLOOR TIKA GALI # 1 FAISALABAD MAHRIA CLEARIUN & FORWARDING AGENCY ROOM NO 2-E, 2RD FLOOR MUHAMMAD BAKSH & SONS BUILDING, 23-WEST WHARF ROAD KARACHI
FLAT 10, 101 WEST WIND ESTATES FL-11, CLIFTON, KARACHI. 5879099/5861323/03332103313 CLIFTON
35202-2524810-9
2,247,586
628,241
2,875,827
1,350,706
1,350,706
232
SHEIKH MUHAMMAD KHALID RAFI EJAZ KHALID
33100-4129492-5
SH MOHAMMAD RAFI BOOTAY KHAN
4,801,529
1,832,891
6,634,419
3,401,805
3,401,805
233
35202-2745477-9
2,679,480
2,679,480
1,740,485
1,740,485
234
AMIR MAJEED
42301-6831572-5
ABDUL MAJEED
6,568,072
6,568,072
4,274,751
4,274,751
80
Annual Report 2011

Annexure-1
Sr. No.
Name
Address
Principal
235
ISHTIAQ AHMED KHAN
HOUSE # 109/2 SANA SYE CLINIC E BLOCK SATELLITE TOWN RAWALPINDI SHOP # 1 REHMAN STREET NO 16 BRANDRATH ROAD LAHORE D-6,BLOCK-7, JASON VIP APARTMENT CLIFTON,KARACHI. PECHS
37405-4051344-5
MUHD ASLAM KHAN MUHAMMAD ISMAIL ABDUL GHAFFAR
6,381,631
414,225
6,795,856
1,456,581
1,456,581
236
MIAN IRFAN AKMAL
35202-8483741-1
4,276,155
1,150,537
5,426,692
1,922,512
1,922,512
237
NASIR GHAFFAR
42201-6414806-3
3,859,082
478,667
4,337,749
661,132
661,132
238
RIAZ AHMED
H NO 2 AS, QADRI ST 16 MUHAMMAD ALI ROAD ICHRA LAHORE 5452491108754758 LAHORE 50-A-11 LAWRANCE ROAD LAHORE LAHORE 573-B, MODEL TOWN GUJRANWALA
35201-6208090-5
CHAN DIN
1,240,722
408,960
1,649,682
836,772
836,772
239
ALI ZAHID
35202-2467252-3
AKHTAR ALI
2,660,037
1,112,253
3,772,290
2,175,403
2,175,403
240
MUHAMMAD RIZWAN
34101-4255215-1
HAJI MUHAMMAD ABDUL RAHI MUGHAL
2,436,761
81,374
2,518,135
620,418
620,418
241
MUHAMMAD YAMEEN MUGHAL
HOUSE # B-1,310STREET # 2,MUSLIM TOWN NEARMASJID F SHOP # B-1,438KURI ROAD NEARATTA CHAKKISADIQABADRA HOUSE A-28 SECTOR-V SUB SECTOR-II GULSHAN-E-MAYMAR KDA SCHEME-45 KARACHI. 2474255/0300-2796344/03042963922 GULSHAN -E- MAYMAR
37405-8925326-1
2,396,918
685,408
3,082,326
1,315,163
1,315,163
242
ASIF
42101-1750500-7
CHARAGH UD DIN
3,727,703
1,107,688
4,835,391
2,085,537
2,085,537
243
MOHAMMAD IBRAHIM SHEIKH
HOUSE C-58 OWN HOMES F-B-AREA BLOCK 21 ,BEHIND CENTRUM SHOPPING MALL KHI. KARACHI
42201-4506647-1
M YOUSUF
2,568,759
530,429
3,099,188
1,044,238
1,044,238
244
MUHAMMAD AZHAR ALI
48/2, BANK COLONY INDAR NAGAR BASTAMI ROAD SAMANABAD LAHORE. 7595760/0300-4475663/7637426 SAMANABAD PLOT 28/A/4, V-1-2, 33RD ST PH-5, DHA, KARACHI. 5347876/0300-2305142/5343521 CLIFTON HOUSE 338 NARGIS BLOCK ALLAMA IQBAL TOWN LAHORE. 7840024/03004841449/7724661 IQBAL TOWN
35202-6310730-9
MUHAMMAD ASLAM ALI
1,465,649
510,720
1,976,369
858,092
858,092
245
EJAZ HAIDER
42301-8230895-9
SHAFQAT HUSSAIN
12,118,063
5,425,308
17,543,371
6,142,237
6,142,237
246
SHAHID ABBAS
35202-6066278-5
MUHAMMAD ABBAS
5,578,112
978,282
6,556,394
3,368,431
3,368,431
247
JAVED IQBAL KHAN
37 / II, MAIN KHY-E-BAHARIA PHASE V, D.H.A. 3008203222 DHA KARACHI
42301-5661982-7
IQBAL AHMED KHAN
18,016,123
2,312,928
20,329,051
5,849,957
5,849,957
248
NAEEM HAMEED
1466 H MIAN CIRCULAR ROAD OUTSIDE AKBARI GATE LAHORE
35202-2826783-9
ABDUL HAMEED
996,471
702,713
1,699,183
898,715
898,715
249
EJAZ HAIDER
H NO.1990 ST NO.2MAIN BAZARMANSOORABADFAISALABAD SHOP NO.35/34 IST FLOOR3RD GALLERYREX CITY SATIANA APARTMENT # 1,FIRST FLOOR,PLOT # C26TH BADAR COMM.STREET,PHASE V EXT,D H A DHA KARACHI SHOP NO 48, MEMON PLAZA ABIGAL OFF NISHTAR ROAD KARACHI KARACHI HOUSE # 55-S BLOCK 6 PECHS PAKISTAN EMPLOYEES CO-OPERATIVE HOUSING SOCIETY
33105-0198588-1
MIRZA GHULAM HAIDAR
3,220,680
869,101
4,089,781
1,131,976
1,131,976
250
AZRA
42301-0981148-8
NADEEM LIAQUAT
798,090
323,025
1,121,114
571,921
571,921
251
ASGHAR ALI
42301-1014173-9
SULEMAN
1,954,402
520,605
2,475,007
1,072,466
1,072,466
252
IMRAN SABIR
42201-4154606-7
MOHAMMAD SABIR
5,945,271
686,630
6,631,901
1,727,345
1,727,345
253
RIAZ AHMAD KHAN
FLAT # 401, CLIFTON VIEW APT FRERE TOWN, NEAR TEEN TALWAR CLIFTON GULSHAN -E- IQBAL HOUSE# 75, BLOCK-I,SHEES MEHAL KRS, CAPTAIN ROAD, JAMSHED QUARTERS B-2, BLOCK# 3,DARUL ISLAM ROAD, TOWNSHIP, TOWNSHIP RAILWAY ROAD WARD -09 CHAH KHOLAY RAILWAY ROAD
41304-9693644-5
WAHID ALI KHAN
2,136,327
561,260
2,697,587
1,262,605
1,262,605
254
MUHAMMAD IQBAL
42301-1116504-9
ABDUL GHAFFAR CH. AMEER ALI
2,400,950
155,607
2,556,557
591,190
591,190
255
ZAFAR IQBAL
35202-2914926-7
1,459,674
378,833
1,838,507
714,234
714,234
256
ALTAF HUSAIN
34201-0563615-3
KHADIM HUSAIN
778,043
391,855
1,169,898
601,750
601,750
Annual Report 2011
81

Annexure-1
Sr. No.
Name
Address
Principal
257
ABDUL RASHID
HOUSE # 28-B/1, KHAYABAN-E-BAHRIA, PHASE -7, DHA. H # R269 LINES AREA, SECTOR 1-A JINNAH ROAD MA
42201-8240575-5
ABDUL KARIM LAKHANI MOIN UDDIN
23,775,433
9,118,375
32,893,808
19,875,154
19,875,154
258
SHAHAB UD DIN
42201-2150016-3
2,328,592
848,687
3,177,279
1,542,862
1,542,862
259
FAYYAZ UL HASSAN
RORAS ROAD NEAR MAKKI MASJID NEW MUBARIK PURA MUBARAK PURA SLK
34603-7209250-9
CHUDHARY MUHAMMAD ISHAQ SULTAN AHMED
2,711,573
597,098
3,308,671
1,510,984
1,510,984
260
IFTIKHAR SULTAN
18 2ND FLOOR, NATIONAL BUSINESS CENTRE, SHAMAS ABAD I-8/4 H # R-645, BLOCK # 19 F.B. AREA DHA KARACHI PLAZA SHOES SAID NAGRI MARKET, JOHAR TOWN H NO R-195, BLOCK 15-A/4 BUFFER ZONE
61101-3671428-7
13,974,757
883,698
14,858,456
3,374,619
3,374,619
261
MANSOOB HASSAN DURANI NAEEM MUMTAZ
42101-0368659-9
MASROOR HASAN KHAN MUMTAZ AHMED SYED RIAST ALI SHAH MOHAMMAD SHIBLI GHULAM ALI
1,767,569
869,550
2,637,119
1,341,951
1,341,951
262
34101-5033210-5
4,542,206
1,742,632
6,284,838
3,300,714
3,300,714
263
SYED IMRAN ALI SHAH
42101-1914830-7
2,833,773
681,111
3,514,884
1,560,744
1,560,744
264
TABISH AHMER
FLAT # A-109, RUFI HEAVEN 13-D/2, GULSHAN-E-IQBAL GULSHAN-E-IQBAL HEAD OFFICE 6TH FLOOR MADINA CITY MALL SADDAR DHA KARACHI FLAT # 113, BLOCK -B, RUFI HEAVEN, GULSHAN-E-IQBAL.BLOCK -13-D-2. GULISTAN -E- JOHAR HOUSE # A-80,BLOCK 9 YASEENABAD FEDERAL B AREA GULSHAN -E- IQBAL B-55-12TH STREET GUSHAN-E-FAISAL COOPERATIVE SOCIETY, BATH ISLAND BATH ISLAND H NO 11 ST NO 57 JINNAH ROAD ISLAM PURA LAHORE 101B GULBERG II LAHORE
42101-9404446-3
1,518,555
125,303
1,643,857
640,036
640,036
265
MOHSIN ABBAS
42201-7827248-1
13,569,591
3,815,699
17,385,290
7,754,042
7,754,042
266
JAWED
42201-0797543-9
MOHAMMAD
8,544,164
2,333,827
10,877,991
5,735,739
5,735,739
267
ABDUL RAUF
42104-1717594-7
MUHAMMAD HAJI DADO NOOR MUHAMMAD
1,807,775
649,859
2,457,634
1,087,499
1,087,499
268
MUHAMMAD AYYUB
42301-9716522-5
9,504,698
1,156,010
10,660,708
4,503,453
4,503,453
269 270
UMER WAHEED KHAN MOHAMMAD IQBAL
35202-6834611-3 35202-4847431-7
ABDUL WAHEED KHAN MUHAMMAD SHARIF
868,040 708,274
25,691 -
893,731 708,274
868,040 580,052
47,527 36,920
915,567 616,972
271
CABLES AND CONDUCTOR LIMITED
37-C/1, FAISAL TOWN, LAHORE. FACTORY ADDRESS: 1.6 KM OFF RAIWAND MANGA ROAD, ROSA, MAUZA BHAIL, DIST. KASUR.
(1) Muhammad Ibrahim (1) MUHAMMAD Khan, R/o , House 18- ISMAIL KHAN D-III, Model Town, Lahore. CNIC. 352022050323-3 (2) MUHAMMAD IBRAHIM KHAN (2) Muhammad Amir Khan, R/o House No. 335, Street 7, Cavalry (3) W/O Ground, Lahore Cantt, MUHAMMAD Lahore. CNIC. 35201- IBRAHIN KHAN 2473182-5. (3) Naziran Begum, R/o (4) MUHAMMAD House. 124-D, Model IBRAHIM KHAN Town, Lahore, CNIC. 35202-7521331-6 (4) Muhammad Imran Khan, R/o House No. 335, Street 7, Cavalry Ground, Lahore Cantt, Lahore. CNIC. 352011370877-1
112,399,438 145,648,936
258,048,374 112,399,438
149,388,111
261,787,549
82
Annual Report 2011

Annexure-1
Sr. No.
Name
Address
Principal
272
COTTON ARTS (PVT) LIMITED
REGISTERED OFFICE AT P-18, TIKKA GALI (1) Ateeq Ahmad R/o NO. 3, MONTGOMERY BAZAR, FAISALABAD. House No. 121-A, Peoples Colony, Faisalabad. 331009241325-1 (2) Laeeq Ahmad R/o House No. 121-A, Peoples Colony, Faisalabad. 331004364680-7 (3) Razia Sultana R/o House No. 121-A, Peoples Colony, Faisalabad. 331007734758-4
(1) SHEIKH MUHAMMAD YAQOOB
41,146,580 17,664,173
58,810,753
1,808,028
1,808,028
(3) W/O SHEIKH MUHAMMAD YAQOOB
(4) Nafeez Ahmed R/o (4) SHEIKH MUHAMMAD House No. 121-A, YAQOOB Peoples Colony, Faisalabad. 331000905950-3 906,581,313 381,662,455 1,288,243,768 465,953,828 346,641,012 812,594,841
Annual Report 2011
83
Consolidated Financial Statements

Auditors' Report to the Members

We have audited the annexed consolidated financial statements of Standard Chartered Bank (Pakistan) Limited (the Bank) comprising consolidated financial position as at 31 December 2011 and the related consolidated profit and loss account, consolidated statement of comprehensive income, consolidated cash flow statement and consolidated statement of changes in equity together with the notes forming part thereof, for the year then ended. These financial statements are responsibility of the Banks management. Our responsibility is to express our opinion on these financial statements based on our audit. The financial statements of a subsidiary, Standard Chartered Modaraba for the six months period to 31 December 2011 were reviewed by another firm of chartered accountants, whose report has been furnished to us and our opinion in so far as it relates to the amounts included for the subsidiary, is solely based on the report of other auditor. We conducted our audit in accordance with the auditing standards as applicable in Pakistan. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the above said statements are free of any material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the above said statements. An audit also includes assessing the accounting policies and significant estimates made by management, as well as, evaluating the overall presentation of the above said statements. We believe that our audit provides a reasonable basis for our opinion. In our opinion the consolidated financial statements present fairly the consolidated financial position of the Bank as at 31 December 2011 and the consolidated results of its operations, its consolidated cash flows and consolidated changes in equity for the year then ended in accordance with the approved accounting standards as applicable in Pakistan.
Annual Report 2011
85
Consolidated Statement of Financial Position

As at 31 December 2011
Note 2011 2010 -------- (Rupees in '000) ---------
ASSETS Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Operating fixed assets Intangible assets Deferred tax assets Other assets 4 5 6 7 8 9 10 11 12 26,293,151 3,204,253 20,205,971 104,040,114 137,308,880 6,437,023 26,413,335 2,719,906 37,565,179 364,187,812 24,087,885 921,931 30,421,885 72,294,275 144,721,557 6,606,225 26,681,948 3,429,115 18,132,579 327,297,400
LIABILITIES Bills payable Borrowings from financial institutions Deposits and other accounts Sub-ordinated loans Other liabilities NET ASSETS REPRESENTED BY: Share capital Reserves Unappropriated profit Attributable to equity holders of the bank Minority interest Surplus on revaluation of assets - net of deferred tax CONTINGENCIES AND COMMITMENTS 18 19 38,715,850 3,879,491 8,940,420 51,535,761 799,803 52,335,564 3,323,174 55,658,738 38,715,850 2,785,229 6,838,790 48,339,869 787,227 49,127,096 2,972,973 52,100,069 13 14 15 16 17 4,576,789 19,361,864 235,874,584 699,200 48,016,637 308,529,074 55,658,738 5,691,864 15,914,343 220,187,888 1,135,900 32,267,336 275,197,331 52,100,069
20 21
The annexed notes 1 to 42 form an integral part of these consolidated financial statements.
86
Annual Report 2011
Consolidated Profit and Loss Account

Note 2011 2010 -------- (Rupees in '000) --------32,825,124 (11,907,713) 20,917,411 (4,420,716) 426,956 (27,109) (486,608) (4,507,477) 16,409,934 28,569,842 (11,016,266) 17,553,576 (3,395,488) 690,035 (5,698) (1,648,084) (4,359,235) 13,194,341
Mark-up / return / interest earned Mark-up / return / interest expensed Net mark-up / return / interest income Provision against non-performing loans and advances Recovery of amounts written off Provision for diminution in the value of investments Bad debts written off directly Net mark-up / return / interest income after provisions NON MARK-UP / NON INTEREST INCOME Fees, commission and brokerage income Dividend income Income from dealing in foreign currencies Gain on sale of securities Unrealized gain on revaluation of investments classified as held for trading Other income Total non mark-up / non interest income NON MARK-UP / NON INTEREST EXPENSES Administrative expenses Other provisions / asset write-offs Other charges Total non mark-up / non interest expenses Extra-ordinary / unusual items PROFIT BEFORE TAXATION Taxation - current - prior years' - deferred
22 23
8.4 & 17.4 7.3 8.6.1
24 7.10 25
3,113,571 2,402,852 885,562 56,673 (266,105) 6,192,553 22,602,487 (13,408,462) (399,182) (208,515) (14,016,159) 8,586,328 8,586,328 (2,506,776) (526,411) (3,033,187) 5,553,141
3,455,599 352 1,733,428 805,608 81,601 117,309 6,193,897 19,388,238 (12,997,894) (455,394) (177,265) (13,630,553) 5,757,685 5,757,685 (1,194,171) 30,884 (853,543) (2,016,830) 3,740,855
26 27 28
29 PROFIT AFTER TAXATION Attributable to : Equity holders of the bank Minority shareholders
5,471,308 81,833 5,553,141
3,664,412 76,443 3,740,855
------------- (Rupees) -------------BASIC / DILUTED EARNINGS PER SHARE 30 1.41 0.95
Annual Report 2011
87
Consolidated Statement of Comprehensive Income

2011 2010 -------- (Rupees in '000) --------Profit for the year Other comprehensive income: Surplus / (deficit) on revaluation of 'Available for Sale' financial assets Surplus / (deficit) on revaluation of fixed assets Actuarial gain / (loss) on defined benefit plans Deferred tax on actuarial gain / (loss) 5,553,141 3,740,855
(i) (ii)
(20,103) 7,036 (13,067) 5,540,074
2,169 (759) 1,410 3,742,265
Total comprehensive income for the year Attributable to: Equity holders of the bank Minority shareholders
5,458,241 81,833 5,540,074
3,665,822 76,443 3,742,265
(i)
Surplus / deficit on revaluation of 'Available for Sale' securities-net of deferred tax is presented under a separate head below equity as 'surplus / deficit on revaluation of assets' in accordance with the requirements specified by the State Bank of Pakistan vide its BSD circular 20 dated 04 August 2000 and BSD circular 10 dated 13 July 2004. Surplus on revaluation of fixed assets-net of deferred tax is presented under a separate head below equity as 'surplus / deficit on revaluation of assets' in accordance with the requirements of section 235 of the Companies Ordinance, 1984.
(ii)
88
Annual Report 2011
Consolidated Cash Flow Statement

Note 2011 2010 -------- (Rupees in '000) --------8,586,328 8,586,328 436,488 269,010 (7,872) (56,673) 399,182 27,109 4,480,368 5,547,612 14,133,940 10,215,914 2,013,808 2,932,309 706,871 15,868,902 (1,115,075) 3,447,521 15,686,696 (700,388) 17,318,754 47,321,596 (6,476,546) 40,845,050 5,757,685 (352) 5,757,333 543,915 383,084 (10,029) (81,601) 455,394 5,698 2,369 4,353,537 5,652,367 11,409,700 (9,853,821) (640,772) (19,614,940) 1,345,392 (28,764,141) 847,226 67,017 13,272,063 (4,268,375) 9,917,931 (7,436,510) (2,281,865) (9,718,375)
CASH FLOW FROM OPERATING ACTIVITIES Profit before taxation Dividend income Adjustments for: Depreciation Amortization Gain on disposal of fixed assets Unrealized gain on revaluation of investments classified as held for trading Other provisions / write offs Provision for diminution in the value of investments Lease rentals expense Provision against loans and advances - net of recoveries
Decrease / (increase) in operating assets Lendings to financial institutions Held for trading securities Advances Other assets Increase / (decrease) in operating liabilities Bills payable Borrowings from financial institutions Deposits and other accounts Other liabilities Cash inflow before taxation Income tax paid Net cash generated from / (used in) operating activities CASH FLOW FROM INVESTING ACTIVITIES Net investments Dividend income received Net investment in fixed assets (including intangible assets) Sale proceeds on disposal of fixed assets Net cash (used in) / generated from investing activities CASH FLOW FROM FINANCING ACTIVITIES Repayment of sub-ordinated Term Finance Certificates Dividend paid Dividend paid to minority shareholders by the subsidiary Payment of lease obligations Net cash used in financing activities Increase in cash and cash equivalents for the year Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year
(33,182,619) (357,349) 8,340 (33,531,628)
11,532,215 352 (194,364) 13,694 11,351,897
31
(436,700) (2,319,877) (69,257) (2,825,834) 4,487,588 25,009,816 29,497,404
(387,100) (61,720) (2,369) (451,189) 1,182,333 23,827,483 25,009,816
Annual Report 2011
89
Consolidated Statement of Changes in Equity

Share Capital Share Premium Statutory Reserve Unappropriated Profit
4,049,209
Total
Minority Interest
Total
------------------------------------------- (Rupees in '000) -------------------------------------------Balance as at 31 December 2009 - restated Total Comprehensive income for the year Profit for the year Other Comprehensive income Actuarial gain on defined plan - net of tax Transactions with owners, recorded directly in equity Share based payment transactions (contribution from holding company) Payment against share based payment transactions (to holding company) 3,664,412 1,410 3,665,822 3,664,412 1,410 3,665,822 76,443 76,443 3,740,855 1,410 3,742,265 38,715,850 1,036,090 1,016,257 44,817,406 772,504 45,589,910
47,733
47,733
47,733
732,882 -
(198,638) (150,905) (732,882) -
(198,638) (150,905) (61,720)
(198,638) (150,905) (61,720)
Transfer to statutory reserve Dividend paid to minority shareholders Transferred from surplus on revaluation of fixed assets - net of deferred tax Balance as at 31 December 2010 Total Comprehensive income for the year
38,715,850
1,036,090
1,749,139
7,546 6,838,790
7,546 48,339,869
787,227
7,546 49,127,096
Profit for the year Other Comprehensive income Actuarial gain on defined plan - net of tax Transactions with owners, recorded directly in equity Share based payment transactions (contribution from holding company) Payment against share based payment transactions (to holding company)
5,471,308 (13,067) 5,458,241
5,471,308 (13,067) 5,458,241
81,833 81,833
5,553,141 (13,067) 5,540,074
95,760
95,760
95,760
1,094,262 -
(42,588) 53,172 (1,094,262) (2,322,951)
(42,588) 53,172 (2,322,951)
(69,257) -
(42,588) 53,172 (69,257) (2,322,951)
Transfer to statutory reserve Dividend paid to minority shareholders Cash dividend (2010) Transferred from surplus on revaluation of fixed assets - net of deferred tax Balance as at 31 December 2011
38,715,850
1,036,090
2,843,401
7,430 8,940,420
7,430 51,535,761
799,803
7,430 52,335,564
90
Annual Report 2011
Notes to the Consolidated Financial Statements

1. STATUS AND NATURE OF BUSINESS Standard Chartered Bank (Pakistan) Limited ("the Bank") was incorporated in Pakistan on 19 July 2006 and was granted approval for commencement of banking business by State Bank of Pakistan, with effect from 30 December 2006. The ultimate holding company of the Bank is Standard Chartered PLC, incorporated in England. The registered office is at Standard Chartered Bank Building, I.I. Chundrigar Road, Karachi. The Bank commenced formal operations on 30 December 2006 through amalgamation of entire undertaking of Union Bank Limited and the business carried on by the branches in Pakistan of Standard Chartered Bank, a bank incorporated by Royal Charter and existing under the laws of England. The scheme of amalgamation was sanctioned by State Bank of Pakistan vide its order dated 4 December 2006. The Bank is engaged in the banking business as defined in the Banking Companies Ordinance, 1962 and has a total number of 143 (2010: 162) in operation branches in Pakistan at 31 December 2011. Standard Chartered Bank (Pakistan) Limited has the following three subsidiaries. All of them are incorporated in Pakistan. _ _ _ Standard Chartered Leasing Limited Standard Chartered Modaraba Standard Chartered Services of Pakistan (Private) Limited
These financial statements are consolidated financial statements of Standard Chartered Bank (Pakistan) Limited and its subsidiaries ("the Group"). 2. 2.1 BASIS OF PREPARATION Basis of presentation In accordance with the directives of the Federal Government regarding the shifting of the Grouping system to Islamic modes, the State Bank of Pakistan has issued various circulars from time to time. One permissible form of trade related mode of financing comprises of purchase of goods by the Bank from its 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 financial statements as such but are restricted to the amount of facility actually utilised and the appropriate portion of mark-up thereon. 2.2 Statement of compliance These financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan (ICAP) as are notified under the Companies Ordinance, 1984, provisions of and directives issued under the Companies Ordinance, 1984 and Banking Companies Ordinance, 1962 and the directives issued by State Bank of Pakistan. In case the requirements differ, the provisions of and directives issued under the Companies Ordinance, 1984 and Banking Companies Ordinance, 1962 and the directives issued by the State Bank of Pakistan shall prevail. The Securities and Exchange Commission of Pakistan has approved and notified the adoption of International Accounting Standard 39, 'Financial Instruments: Recognition and Measurement' (IAS 39) and International Accounting Standard 40, 'Investment Property' (IAS 40). The requirements of these standards have not been followed in the preparation of these financial statements as the State Bank of Pakistan has deferred the implementation of these standards for banks in Pakistan till further instructions. However, investments have been classified and valued in accordance with the requirements of various circulars issued by the State Bank of Pakistan. 2.3 Basis of measurement These financial statements have been prepared under the historical cost convention, except that certain available for sale, trading and derivative financial instruments have been measured at fair value whereas certain fixed assets are stated at revalued amounts less accumulated depreciation and accumulated impairment losses, where applicable. 2.4 Use of estimates and judgments The preparation of financial statements in conformity with approved accounting standards requires management to make judgments, estimates and assumptions that effect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Annual Report 2011
91

In particular, information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements are described in the following: 2.5 Note 8 Note 9 & 10 Note 10.2 Note 11 Note 21.6 Note 29 Note 33 Provision against non-performing advances Valuation and depreciation rates for fixed assets Goodwill impairment testing Deferred taxation Derivative instruments Income taxes Employees' retirement defined benefit plans
Functional and presentation currency These financial statements are presented in Pakistan Rupees, which is the Groups functional currency. Except as indicated, financial information presented in Pakistan Rupees has been rounded to the nearest thousand.
3.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been applied consistently to all years presented.
3.1
Basis of consolidation Subsidiaries Subsidiaries are entities controlled by the Group. Control exists when the Group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that presently are exercisable are taken into account. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Acquisitions from entities under common control Business combinations arising from transfers of interests in entities that are under the control of the shareholder that controls the Group are accounted for as if the acquisition had occurred at the beginning of the earliest comparative period presented. For this purpose comparatives are restated. The assets and liabilities acquired are recognised at the carrying amounts recognised previously in the combining entity's financial statements. Other acquisitions Other business combinations are accounted for using the acquisition method. For acquisitions prior to 1 January 2009, the cost of acquisition is measured as the fair value of the asset given, equity instruments issued and the liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition. Identified assets acquired are fair valued at the acquisition date, irrespective of the extent of any minority interest. The excess of cost of acquisition over the fair value of identifiable net assets acquired is recorded as goodwill.
3.2
Cash and cash equivalents For the purposes of cash flow statement, cash and cash equivalents comprise of cash and balances with treasury bank and balances with other banks.
3.3
Investments The Group classifies its investments as follows: a) Held for trading These are securities, which are acquired with the intention to trade by taking advantage of short term market / interest rate movements and are carried at market value. The surplus / deficit arising as a result of revaluation at market value is recognised in the profit and loss account. These securities are to be sold within 90 days from the date of their classification as 'Held for trading' under normal circumstances, in accordance with the requirements specified by BSD Circular 10 dated 13 July 2004 by the State Bank of Pakistan. b) Held to maturity These are securities with fixed or determinable payments and fixed maturity that are held with the intention and ability to hold to maturity. These are carried at amortised cost.
92
Annual Report 2011

c) Available for sale These are investments that do not fall under the held for trading or held to maturity categories and are carried at market value. The surplus / deficit arising as a result of revaluation at market value is kept in a separate account below equity. All 'regular way' purchases and sales of investments are recognised on the trade date i.e. the date that the Group commits to purchase or sell the asset. Regular way purchases or sales are purchases or sales of investments that require delivery of assets within the time frame generally established by regulation or convention in the market place. 3.4 Sale and repurchase agreements Securities sold subject to repurchase agreements ('repos') remain on the balance sheet; the counterparty liability is included in borrowings from financial institutions. Securities purchased under agreements to resell ('reverse repos') are recorded as lendings to financial institutions. The difference between sale and repurchase price is treated as interest / mark-up / return and accrued over the life of the underlying agreement using the effective interest method. 3.5 Advances Advances are stated net of provision against non-performing advances. Specific and general provisions are made based on an appraisal of the loan portfolio that takes into account Prudential Regulations issued by the State Bank of Pakistan from time to time. Specific provisions are made where the repayment of identified loans is in doubt and reflect an estimate of the amount of loss expected. The general provision is for the inherent risk of losses which, although not separately identified, are known from experience to be present in any loan portfolio. Provision made / reversed during the year is charged to the profit and loss account and accumulated provision is netted off against advances. Advances are written-off when there is no realistic prospect of recovery. When the Group is the lessor in a lease agreement that transfers substantially all of the risks and rewards incidental to ownership of an asset to the lessee, the arrangement is presented within loans and advances. Assets given under Ijarah contracts entered after 1 July 2008 are depreciated over the period of lease on a straight line basis. The Ijarah arrangements are shown as financing under loans and advances. Murabaha financings are reflected as receivables at the sale price. Actual sale and purchase is not reflected as the goods are purchased by the customer as agent of the Bank and all documents relating to purchase are in customer's name. Funds disbursed under Murabaha financing arrangements for purchase of goods are recorded as "Advance Against Murabaha". In Diminishing Musharaka based financing, the Group enters into a Musharaka based on Shirkat-ul-milk for financing an agreed share of fixed asset (e.g. house, land, plant or machinery) with its customers and enters into a periodic rental payment agreement for the utilization of the Bank's Musharaka share by the customer. 3.6 Operating fixed assets - tangible Owned Operating fixed assets, other than land and buildings, are stated at cost less accumulated depreciation and accumulated impairment losses thereon. Cost includes expenditure that is directly attributable to the acquisition of fixed assets. Land and buildings are stated at revalued amounts less accumulated depreciation. Subsequent costs are included in the asset's carrying amount or are recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance expenditures are charged to profit and loss account during the financial period in which they are incurred. Land and buildings on freehold land are revalued by independent professionally qualified valuer(s). Surplus arising on revaluation is credited to the 'surplus on revaluation of fixed assets' account (net of deferred tax). Under the provisions of the Companies Ordinance, 1984, deficit arising on revaluation of fixed assets is adjusted against the balance in the above-mentioned surplus account. The revaluation is carried out with sufficient regularity to ensure that the carrying amount does not differ materially from that which would have been determined using fair value at the balance sheet date. Accumulated depreciation on buildings, at the date of revaluation, is eliminated against the gross carrying amount of buildings. The net amount is then restated to the revalued amount. Surplus on revaluation of fixed assets (net of deferred tax) is transferred to unappropriated profit to the extent of incremental depreciation charged on related assets. Land is not depreciated. Depreciation on all other fixed assets is calculated using the straight line method to allocate their depreciable cost or revalued amount to their residual values over their estimated useful lives.
Annual Report 2011
93

The residual values and useful lives of fixed assets are reviewed, and adjusted (if appropriate) at each balance sheet date. Gains and losses on disposal of fixed assets are included in profit and loss account currently. Leased Fixed assets held under finance lease are stated at the lower of fair value of asset and present value of minimum lease payments at the inception of lease, less accumulated depreciation. Financial charges are allocated over the period of lease term so as to provide a constant periodic rate of financial charge on the outstanding liability. Depreciation is charged on the basis similar to owned assets. 3.7 Intangible assets Goodwill Goodwill represents the excess of cost of an acquisition over the fair value of the share of net identifiable assets acquired at the date of acquisition. Goodwill is tested annually for impairment and carried at cost less accumulated impairment. Computer software Acquired computer software licenses are capitalised on the basis of costs incurred to acquire and bring to use the specific software. These costs are amortised over their expected useful lives using the straight line method. Acquired intangibles in business combination Acquired intangibles in business combination that have finite lives are amortised over their economic useful life based on the manner that benefits of the relevant assets are consumed. 3.8 Impairment of non-financial assets The carrying amounts of the Groups non-financial assets, other than deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists then the assets recoverable amount is estimated. An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated pre-tax future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. 3.9 Staff retirement benefits Defined benefit plan The Group operates approved funded pension and gratuity schemes for all its non-management employees, and a management pension scheme only for its existing pensioners. For defined benefit plans, the liability / asset recognised on the balance sheet is the present value of defined benefit obligation at the balance sheet date less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the "Projected Unit Credit Actuarial Cost Method". Actuarial gains and losses that arise are recognised in other comprehensive income in the period in which they arise. Past service costs are recognised immediately to the extent that benefits are vested and are otherwise recognised over the average period until benefits are vested on a straight line basis. Current service costs and any past service costs together with the expected return on plan assets less the effect of the unwinding of the discount on plan liabilities are charged to operating expenses. Defined contribution plan The Group also operates a defined contribution gratuity scheme for all its management staff and a provident fund scheme for all its permanent staff, contributing at 8.33 percent and 10 percent of basic salary respectively. 3.10 Foreign currency transactions Transactions in foreign currencies are translated to Pakistan Rupees at exchange rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to Pakistan Rupees at the exchange rate prevailing at that reporting date. Foreign currency differences arising on retranslation are recognised in profit or loss.
94
Annual Report 2011

3.11 Taxation Income tax expense comprises of current and deferred tax. Income tax expense is recognised in the profit and loss account except to the extent that it relates to items recognised directly in equity or in other comprehensive income. Current tax Current tax is the expected tax payable on the taxable income for the year (using tax rates enacted or substantively enacted at the balance sheet date), and any adjustment to tax payable in respect of previous years. Deferred tax Deferred tax is provided for using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised on temporary differences relating to: (i) the initial recognition of goodwill; and (ii) the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit. Deferred tax is measured at tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. 3.12 Revenue recognition Mark-up / return on advances and investments is recognised on an accrual basis using the effective interest rate method. The effective interest rate is the rate that exactly discounts the estimated future cash payments and receipts through the expected life of the financial asset or liability (or, where appropriate, a shorter period) to the carrying amount of the financial asset or liability. Mark-up recoverable on classified loans, advances and investments is recognised on a receipt basis in accordance with the requirements of Prudential Regulations issued by the State Bank of Pakistan and Securities and Exchange Commission of Pakistan. Mark-up on rescheduled / restructured loans, advances and investments is also recognised in accordance with the requirements of these Prudential Regulations. The Group follows the effective interest method in accounting for the recognition of lease income. Under this method, the unearned lease income i.e. the excess of aggregate lease rentals and the estimated residual value over the cost of the leased assets is deferred and taken to income over the term of the lease, so as to produce a systematic return on the net investment in lease. Unrealised lease income pertaining to non-performing leases is held in suspense account, where necessary, in accordance with the requirements of the Non-Banking Finance Companies and Notified Entities Regulations, 2008. Processing, front end fee, commitment fee, penal charges and commission are recognised as income when realised. The Group follows the finance method for recognising income on Ijarah contracts commencing prior to 30 June 2008 and accounted for as finance leases. Under this method the unearned income i.e. the excess of aggregate Ijarah rentals (including residual value) over the cost of the asset under Ijarah facility is deferred and then amortised over the term of the Ijarah, so as to produce a constant rate of return on net investment in the Ijarah. For Ijarah arrangements commencing on or after 1 July 2008, Ijarah rentals are recognized as income on accrual basis, as and when rentals become due. In case of Ijarah arrangements with staggered rentals, the income is recognised on a straight line basis over the Ijarah term. Documentation charges, front-end fee and other Ijarah income are recognised as income on receipt basis. Unrealized Ijarah income pertaining to non-performing Ijarahs is held in suspense account, where necessary, in accordance with the requirements of the Prudential Regulations. Fees and commission income are generally recognised on an accrual basis when the service has been provided. Fees and commission which in substance amount to an additional interest charge, are recognised over the life of the underlying transaction on a level yield basis. Dividend income is recognised when the right to receive income is established. The revenue from award credits for loyalty points earned on use of various products of the Bank is measured by reference to their fair value and is recognised when award credits are redeemed. Murabaha transactions are reflected as receivable. Actual sale and purchase are not reflected as the goods are purchased by the customer as an agent of the Bank. Profit on the sales revenue due for payment is deferred by recording credit to 'Deferred Murabaha Income' account.
Annual Report 2011
95

3.13 Derivative financial instruments Derivative financial instruments are initially recognised at fair value and are subsequently remeasured at fair value. All derivative financial instruments are carried as assets when fair value is positive and liabilities when fair value is negative. Any change in the fair value of derivative financial instruments is taken to profit and loss account. 3.14 Provisions Provisions for restructuring costs and legal claims are recognised when: (i) the Group has a present legal or constructive obligation as a result of past events; (ii) it is more likely than not that an outflow of resources will be required to settle the obligation; and (iii) the amount has been reliably estimated. 3.15 Fiduciary activities The Group commonly acts in fiduciary capacities that result in the holding or placing of assets on behalf of individuals, trusts, retirement benefit plans and other institutions. These assets and income arising thereon are excluded from these financial statements, as they are not assets of the Group. 3.16 Segment reporting A segment is a distinguishable component of the Group that is engaged either in providing products or services (business segment), or in providing products or services within a particular economic environment (geographical segment), which is subject to risks and rewards that are different from those of other segments. The Groups primary format for segment reporting is based on business segments. A brief description of the products and services offered by different segments of the Group is given in note 37 to these financial statements. 3.17 Offsetting Financial assets and liabilities are set off and the net amount presented in the balance sheet when, and only when, the Group has a legal right to set off the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. 3.18 Subordinated liabilities Subordinated liabilities are initially measured at fair value plus transaction costs, and subsequently measured at their amortised cost using the effective interest method. 3.19 Non-current assets and disposal groups held for sale Non-current assets and disposal groups comprising of assets and liabilities that are expected to be recovered primarily through sale rather than continuing use are classified as held for sale. Immediately before being classified as held for sale, the assets and components of disposal group are remeasured in accordance with the Group's accounting policies. Thereafter, the assets and disposal group are measured at the lower of their carrying values and fair values less cost to sell. 3.20 Share-based compensation Standard Chartered PLC operates various share-based compensation plans which are accounted for as equity settled share based payment transactions, regardless of inter group repayment arrangements. The cost for such share based payment transactions is determined by reference to the fair value of options at the grant date. The fair value is determined based on the market price or using an appropriate valuation technique. The cost is charged to profit and loss account and credited to equity as a contribution from parent. The liability for these transactions which is based on the fair value of these options at the settlement date is settled through debiting equity. 3.21 New standards and interpretations not yet adopted The following standards, amendments and interpretations of approved accounting standards will be effective for accounting periods beginning on or after 01 January 2012: Amendments to IAS 12 deferred tax on investment property (effective for annual periods beginning on or after 1 January 2012). The 2010 amendment provides an exception to the measurement principle in respect of investment property measured using the fair value model in accordance with IAS 40 Investment Property. The measurement of deferred tax assets and liabilities, in this limited circumstance, is based on a rebuttable presumption that the carrying amount of the investment property will be recovered entirely through sale. The presumption can be rebutted only if the investment property is depreciable and held within a business model whose objective is to consume substantially all of the assets economic benefits over the life of the asset. The amendment has no impact on financial statements of the Group. IAS 27 Separate Financial Statements (2011) - (effective for annual periods beginning on or after 1 January 2013). IAS 27 (2011) supersedes IAS 27 (2008). Three new standards IFRS 10 - Consolidated Financial Statements, IFRS 11- Joint
96
Annual Report 2011

Arrangements and IFRS 12- Disclosure of Interest in Other Entities dealing with IAS 27 would be applicable effective 1 January 2013. IAS 27 (2011) carries forward the existing accounting and disclosure requirements for separate financial statements, with some minor clarifications. The amendments have no impact on financial statements of the Group. IAS 28 Investments in Associates and Joint Ventures (2011) - (effective for annual periods beginning on or after 1 January 2013). IAS 28 (2011) supersedes IAS 28 (2008). IAS 28 (2011) makes the amendments to apply IFRS 5 to an investment, or a portion of an investment, in an associate or a joint venture that meets the criteria to be classified as held for sale; and on cessation of significant influence or joint control, even if an investment in an associate becomes an investment in a joint venture. The amendments have no impact on financial statements of the Group. IAS 19 Employee Benefits (amended 2011) - (effective for annual periods beginning on or after 1 January 2013). The amended IAS 19 includes the amendments that require actuarial gains and losses to be recognised immediately in other comprehensive income; this change will remove the corridor method and eliminate the ability for entities to recognise all changes in the defined benefit obligation and in plan assets in profit or loss, which currently is allowed under IAS 19; and that the expected return on plan assets recognised in profit or loss is calculated based on the rate used to discount the defined benefit obligation. The amendment has no impact on financial statements of the Group. Presentation of Items of Other Comprehensive Income (Amendments to IAS 1) - (effective for annual periods beginning on or after 1 July 2012). The amendments require that an entity present separately the items of other comprehensive income that would be reclassified to profit or loss in the future if certain conditions are met from those that would never be reclassified to profit or loss. The amendments do not address which items are presented in other comprehensive income or which items need to be reclassified. The requirements of other IFRSs continue to apply in this regard. The amendments have no impact on financial statements of the Group. Disclosures Transfers of Financial Assets (Amendments to IFRS 7) - (effective for annual periods beginning on or after 1 July 2011). The amendments introduce new disclosure requirements about transfers of financial assets, including disclosures for financial assets that are not derecognised in their entirety; and financial assets that are derecognised in their entirety but for which the entity retains continuing involvement. The amendments have no impact on financial statements of the Group. Offsetting Financial Assets and Financial Liabilities (Amendments to IAS 32) (effective for annual periods beginning on or after 1 January 2014). The amendments address inconsistencies in current practice when applying the offsetting criteria in IAS 32 Financial Instruments: Presentation. The amendments clarify the meaning of currently has a legally enforceable right of set-off; and that some gross settlement systems may be considered equivalent to net settlement. The amendments have no impact on financial statements of the Group. Offsetting Financial Assets and Financial Liabilities (Amendments to IFRS 7) (effective for annual periods beginning on or after 1 January 2013). The amendments to IFRS 7 contain new disclosure requirements for financial assets and liabilities that are offset in the statement of financial position or subject to master netting agreement or similar arrangement. The amendments have no impact on financial statements of the Group. IFRIC 20 - Stripping cost in the production phase of a surface mining (effective for annual periods beginning on or after 1 January 2013). The interpretation requires production stripping cost in a surface mine to be capitalized if certain criteria are met. The amendments have no impact on financial statements of the Group. Note 4. CASH AND BALANCES WITH TREASURY BANKS In hand - Local currency - Foreign currencies With State Bank of Pakistan in: - Local currency current account - Local currency current account-Islamic Banking - Foreign currency deposit account Cash reserve account (5% of FE 25) Special cash reserve account (15% of FE 25) Local US Dollar collection account With National Bank of Pakistan in: - Local currency current account 2011 2010 -------- (Rupees in '000) ---------
4.1
2,410,564 1,180,606
2,306,342 921,596
11,432,149 779,147 2,518,300 7,036,227 28,689 907,469 26,293,151
10,219,027 557,362 2,278,108 6,827,499 19,083 958,868 24,087,885
4.1
This includes National Prize Bonds of Rs. 5.148 million (2010: Rs. 4.382 million).
Annual Report 2011
97

Note 5. BALANCES WITH OTHER BANKS In Pakistan - In current accounts - In fixed accounts Outside Pakistan - In current accounts
2011 2010 -------- (Rupees in '000) ---------
5.1
10,837 150,000
23,829 100,000
5.2
3,043,416 3,204,253
798,102 921,931
5.1
These carry mark up rate of 9.5% per annum ( 2010: 12.6 % per annum). The balance has been kept to comply with the requirements of the guidelines issued by the Securities and Exchange Commission of Pakistan (SECP) for maintaining the prescribed liquidity against the certificate of musharika issued by Standard Chartered Modaraba. This includes balances of Rs.2,986.847 million (2010: Rs. 758.120 million) held with other branches and subsidiaries of Standard Chartered Group outside Pakistan. LENDINGS TO FINANCIAL INSTITUTIONS Call money lendings Repurchase agreement lendings (Reverse Repo) Placements 500,000 9,351,574 10,354,397 20,205,971 6,457,638 23,964,247 30,421,885
5.2
6.
6.1 6.2
6.1
These carry mark-up at rates ranging from 11.75 percent to 11.85 percent per annum (2010: 12.3 percent to 13.8 percent per annum) payable at maturity, and are due to mature by Janaury 2012. These arrangements are governed under Master Repurchase Agreements. This represents placements with other branches and subsidiaries of Standard Chartered Group outside Pakistan at mark-up rates ranging from 0.15 percent to 0.45 percent per annum (2010: 0.15 percent and 1.22 percent per annum), and are due to mature by January 2012. 2011 2010 -------- (Rupees in '000) --------9,851,574 10,354,397 20,205,971 6,457,638 23,964,247 30,421,885
6.2
6.3
Particulars of lending In local currency In foreign currencies
6.4
Securities held as collateral against lendings to financial institutions 2011 Further Held by given as Total bank collateral
Held by bank
2010 Further given as collateral
Total
----------------------------------- (Rupees in '000) -----------------------------------Market Treasury Bills Pakistan Investment Bonds 9,351,574 9,351,574 5,307,638 5,307,638
9,351,574
9,351,574
1,150,000 6,457,638
1,150,000 6,457,638
6.4.1 The market value of securities held as collateral against lendings to financial institutions amounted to Rs.9,389.849 million (2010: Rs. 6,360.864 million).
98
Annual Report 2011

7. INVESTMENTS 2011 2010
7.1
Investments by type Note Held for trading Market Treasury Bills Pakistan Investment Bonds Available for sale Market Treasury Bills Pakistan Investment Bonds Ordinary shares of listed companies Units / certificates of mutual funds Ordinary shares of unlisted companies Sukuk and Ijarah Bonds Held To Maturity Pakistan Investment Bonds Sukuk Bonds Investments at amortised cost Provision for diminution in the value of investments Investments (net of provisions) Surplus on revaluation of held for trading securities - net (Deficit) / surplus on revaluation of available for sale securities - net Total investments at market value
Held by bank
Given as collateral
Total
Held by bank
Given as collateral
Total
----------------------------------- (Rupees in '000) -----------------------------------5,607,171 473,372 5,607,171 473,372 7,932,763 161,588 7,932,763 161,588
7.6 7.6 7.7 7.8 7.11 7.9
75,300,230 14,908,368 1,363 86,987 5,925,000
1,792,417 18,904 -
77,092,647 14,927,272 1,363 86,987 5,925,000
50,600,556 10,356,924 1,363 86,987 3,625,000
18,958 -
50,600,556 10,375,882 1,363 86,987 3,625,000
205,615 60,547 102,568,653
205,615 60,547 1,811,321 104,379,974
280,189 65,234 73,110,604
18,958
280,189 65,234 73,129,562
7.3
(54,450) 102,514,203 56,673 (340,713) 102,230,163
(54,450) (27,341) 1,811,321 104,325,524 73,083,263 56,673 81,601
18,958 -
(27,341) 73,102,221 81,601
7.10
(1,370) (342,083) (886,826) 1,809,951 104,040,114 72,278,038
(2,721) (889,547) 16,237 72,294,275
Note
7.2 Investments by segment Federal Government Securities Market Treasury Bills Pakistan Investment Bonds Fully paid up ordinary shares Unlisted companies Bonds and Term Finance Certificates Sukuk and Ijarah Bonds Other investments (mutual funds) Total investment at amortised cost Provision for diminution in the value of investments Surplus on revaluation of held for trading securities - net Deficit on revaluation of available for sale securities - net Total investments 7.3 Particulars of provision for diminution in the value of investments Opening balance Charge for the year Reversals Net charge Closing Balance 7.3.1 The details of provision held against investments are as follows: Ordinary shares of unlisted companies - available for sale Sukuk bonds - held to maturity
2011 2010 -------- (Rupees in '000) ---------
82,699,818 15,606,259 86,987 5,985,547 1,363 104,379,974 (54,450) 104,325,524 56,673 (342,083) 104,040,114
58,533,319 10,817,659 86,987 3,690,234 1,363 73,129,562 (27,341) 73,102,221 81,601 (889,547) 72,294,275
7.3.1
27,341 27,109 27,109 54,450
21,643 15,688 (9,990) 5,698 27,341
2,341 52,109 54,450

2,341 25,000 27,341


7.4 Investments include securities having book value of Rs. 18.904 million (2010: Rs. 18.958 million) pledged with the State Bank of Pakistan as security to facilitate T.T. discounting facility to the Bank, including an amount earmarked against the facilities allocated to branches now in Bangladesh. Market Treasury Bills and Pakistan Investment Bonds are eligible for discounting with the State Bank of Pakistan.
2011 2010
7.5
Rating Quality of 'Available for Sale' securities

7.6 Federal Government Securities Market Treasury Bills Pakistan Investment Bonds Unrated Unrated
Cost
Market value
Rating
Cost
Market value
------------ (Rupees in '000) ------------- ------------ (Rupees in '000) -------------
77,092,647 14,927,272 92,019,919
77,180,389 14,493,243 91,673,632
Unrated 50,600,556 Unrated 10,375,882 60,976,438
50,566,358 9,520,186 60,086,544
7.7
Particulars of shares held - listed 2011 2010
2011
2010 Rating Cost
(Number of shares)
Market value
Rating
Cost
Market value
------------ (Rupees in '000) ------------- ------------ (Rupees in '000) ------------7,500 2,800 11,000 4,800 3,500 7,500 2,800 11,000 4,800 3,500 Sakrand Sugar Mills Limited Bawany Sugar Mills Limited Dadabhoy Cement Limited Khurshid Spinning Mills Taj Textile Mills Limited Unrated Unrated Unrated Unrated Unrated 17 33 50 Unrated Unrated Unrated Unrated Unrated 22 22
All shares are ordinary shares of Rs. 10 each except otherwise mentioned. 7.8 Particulars of units / certificates held in mutual funds 2011 2010
2011
2010 Note Rating Cost
(Number of units)
Market value
Rating
Cost
Market value
------------ (Rupees in '000) ------------- ------------ (Rupees in '000) ------------17,235 17,235 National Investment (Unit) Trust Unrated 1,363 1,363 6,850 6,850 Unrated 1,363 1,363 1,796 1,796
7.9
Bonds and Term Finance Certificates Wapda Sukuk Bonds Pakistan International Airlines Sukuk Bonds GoP Ijarah Sukuk Bonds 7.9.1 7.9.2 7.9.3 Unrated Unrated Unrated 300,000 1,325,000 4,300,000 5,925,000 287,551 1,325,000 4,311,117 5,923,668 Unrated Unrated Unrated 300,000 1,325,000 2,000,000 3,625,000 300,000 1,325,000 1,999,892 3,624,892
7.9.1
Wapda Sukuk Bonds carry mark-up rates of 0.25% below 6 months KIBOR. The principal and profit is payable semi-annually with final maturity in July 2017. PIA Sukuk bonds carry mark-up rates of 1.75% above 6 months KIBOR. The principal and profit is payable semi-annually with final maturity in October 2012. Gop Ijarah Sukuk Bonds carry mark-up rates of weighted average yield of 6 months treasury bills. The profit is payable semi-annually with principal redemption at maturity falling due between December 2013 and December 2014 for the various issues held by the Bank.
7.9.2
7.9.3
100 Annual Report 2011

2011 2010 -------- (Rupees in '000) --------59,984 (3,311) 56,673 83,842 (2,241) 81,601
7.10
Unrealized gain on revaluation of investments classified as held for trading Market Treasury Bills Pakistan Investment Bonds
7.11
Particulars of shares held - unlisted
2011
2010
2011
Rating Khushali Bank Limited Ordinary Shares of Rs. 10 each Chief Executive: M. Ghalib Nishtar Pakistan Export Finance Guarantee Agency Limited Chairman : Mr Muneer Kamal A/A-1
2010
(Number of shares) 8,000,000 8,000,000
2011 2010 -------- (Rupees in '000) --------83,088 83,088
A-/A-2
573,769
573,769
Unrated
Unrated
3,004
3,004
Society for Worldwide Interbank Fund Transfer Unrated
Unrated
895 86,987 (2,341) 84,646
895 86,987 (2,341) 84,646
Provision for diminution in the value - note 7.3.1
8.
ADVANCES Loans, cash credits, running finances, etc. - In Pakistan - Outside Pakistan
Note
2011 2010 -------- (Rupees in '000) --------137,692,156 137,692,156 147,607,997 147,607,997
Net investment in Finance Lease / Ijarah Finance - In Pakistan - Outside Pakistan Ijarah contracts accounted for under IFAS 2 Bills discounted and purchased (excluding treasury bills) - Payable in Pakistan - Payable outside Pakistan Advances - gross Provision for non-performing advances Advances - net of provision 8.1 8.1.1 Particulars of advances In local currency In foreign currencies
8.2
8.3
4,150,183 4,150,183 3,403,589
3,161,249 3,161,249 2,375,742
6,224,555 8,183,008 14,407,563 159,653,491 8.5 (22,344,611) 137,308,880
3,133,517 7,434,767 10,568,284 163,713,272 (18,991,715) 144,721,557
123,255,913 14,052,967 137,308,880 103,308,334 34,000,546 137,308,880
133,591,606 11,129,951 144,721,557 97,878,638 46,842,919 144,721,557
8.1.2
Short term (for upto one year) Long term (for over one year)

8.2 Net investment in Finance Lease
2011
2010
Not later Later than Over five Not later Later than Over five Total Total than one one and than one one and years years year year less than less than five years five years --------------------------------------------- (Rupees in '000) -----------------------------------------Lease rental receivable Residual value Minimum Lease payments Financial charges for future periods Present value of minimum lease payments 1,977,681 237,904 2,215,585 (475,512) 1,740,073 2,111,548 632,453 2,744,001 (333,891) 2,410,110 4,089,229 870,357 4,959,586 (809,403) 4,150,183 1,682,103 240,149 1,922,252 (408,434) 1,513,818 1,450,402 398,401 1,848,803 (201,372) 1,647,431 3,132,505 638,550 3,771,055 (609,806) 3,161,249
8.3
Ijarah contracts accounted for under IFAS 2 The following is a statement of assets leased out subsequent to 1 July 2008 that have been accounted for under Islamic Financial Accounting Standard 2, 'Ijarah' (IFAS 2):
2011
Cost
2010
Tangible Plant, machinery and equipment Motor vehicles
Accumulated Net book Cost Accumulated Net book depreciation value depreciation value -------------------------------- (Rupees in '000) ---------------------------2,468,700 2,508,867 4,977,567 795,926 778,052 1,573,978 1,672,774 1,730,815 3,403,589 1,674,770 1,552,034 3,226,804 443,421 407,641 851,062 1,231,349 1,144,393 2,375,742
8.4
Advances include Rs. 26,102.557 million (31 December 2010: Rs. 22,581.390 million) which have been placed under non-performing status as detailed below:

Domestic Overseas
Category of classification OAEM Substandard Doubtful Loss
Provision Required
Provision Held
Total
--------------------------------------------------- (Rupees in '000) ------------------------------------------------4,078 1,713,133 3,317,025 21,068,321 26,102,557 26,102,557 4,078 1,713,133 3,317,025 21,068,321 26,102,557 26,102,557 2,267 364,979 1,526,900 19,808,971 21,703,117 641,494 22,344,611 2,267 364,979 1,526,900 19,808,971 21,703,117 641,494 22,344,611 2,267 364,979 1,526,900 19,808,971 21,703,117 641,494 22,344,611 2,267 364,979 1,526,900 19,808,971 21,703,117 641,494 22,344,611
General provision

Provision Required
Provision Held
--------------------------------------------------- (Rupees in '000) ------------------------------------------------OAEM Substandard Doubtful Loss 58,301 2,139,758 2,166,314 18,217,017 22,581,390 22,581,390 58,301 2,139,758 2,166,314 18,217,017 22,581,390 22,581,390 15,922 391,950 1,013,765 16,902,482 18,324,119 667,596 18,991,715 15,922 391,950 1,013,765 16,902,482 18,324,119 667,596 18,991,715 15,922 391,950 1,013,765 16,902,482 18,324,119 667,596 18,991,715 15,922 391,950 1,013,765 16,902,482 18,324,119 667,596 18,991,715
General provision
At 31 December 2011, the provision requirement has been reduced by Rs. 1,378.368 million (31 December 2010: Rs. 1,334.357 million) being benefit of Forced Sale Value (FSV) of commercial, residential and industrial properties (land and building only) held as collateral, in accordance with the requirements of State Bank of Pakistan Prudential Regulations (PR) and SBP Circular 1 dated 21 October 2011. Had the said benefit been taken in accordance with the requirements of PR and previous SBP Circular 10 dated 20 October 2009, profit for the year before taxation would have been lower by Rs. 161.426 million. Increase in accumulated profits amounting to Rs. 895.939 million due to the said FSV benefit is not available for distribution of cash and stock dividend.

8.5 Particulars of provision against non-performing advances:
2011 2010
Specific
Opening balance Charge for the year Reversals
General
Total
Specific
General
Total
----------------------------------- (Rupees in '000) -----------------------------------18,324,119 667,596 18,991,715 15,864,857 1,307,010 17,171,867 5,673,214 (1,265,292) 4,407,922 (868,917) (160,007) 21,703,117 223,633 (249,735) (26,102) 641,494 5,896,848 (1,515,028) 4,381,820 8,246,716 (4,208,761) 4,037,955 1,250,375 (1,889,789) (639,414) 667,596 9,497,091 (6,098,550) 3,398,541 (1,342,030) (236,663) 18,991,715
Amounts written off Other movements Closing balance
(868,917) (1,342,030) (160,007) (236,663) 22,344,611 18,324,119
8.6 8.6.1
Particulars of write offs Against provisions Charged and written off during the year
2011 2010 -------- (Rupees in '000) --------868,917 486,608 1,355,525 465,954 889,571 1,355,525 1,342,030 1,648,084 2,990,114 1,776,062 1,214,052 2,990,114
8.6.2
Write-offs of Rs. 500,000 and above Write-offs of below Rs. 500,000
8.7
Details of loans written-off of Rs. 500,000 and above In terms of sub-section (3) of section 33A of the Banking Companies Ordinance, 1962, the statement in respect of written-off loans or any other financial relief of five hundred thousand rupees or above allowed to a person(s) during the year ended 31 December 2011 is given in Annexure 1. 2011 2010 -------- (Rupees in '000) ---------
8.8
Particulars of loans and advances to directors, associated companies, etc. (i) Debts due by directors, executives or officers of the Group or any of them either severally or jointly with any other persons Balance at beginning of the year Loans granted during the year Repayments Balance at end of the year (ii) Debts due by companies or firms in which the directors of the Group are interested as directors, partners or in the case of private companies as members Balance at beginning of the year Loans granted during the year Repayments Balance at end of the year (iii) Debts due by subsidiary companies, controlled firms, managed modarabas and other related parties Balance at beginning of the year Loans granted during the year Repayments Balance at end of the year
2,945,343 1,184,199 (1,854,938) 2,274,604
2,782,731 975,162 (812,550) 2,945,343
117,187 103,180 (93,630) 126,737
130,470 102,087 (115,370) 117,187

8.9 Contractual rentals receivable- Ijarah contracts commencing 1 July 2008
2011
2010
Not later Later than Later than Not later Later than Later than Total Total than one one and than one one and five five year year less than less than years years five years five years --------------------------------------------- (Rupees in '000) -----------------------------------------Rentals receivable Residual value Total future Ijarah payments receivable 1,527,807 64,128 1,591,935 2,520,234 525,980 3,046,214 788 788 4,048,829 590,108 4,638,937 512,961 11,775 524,736 2,255,476 343,721 2,599,197 220 220 2,768,657 355,496 3,124,153
Note 9. OPERATING FIXED ASSETS Capital work-in-progress Property and equipment 9.1 9.2
2011 2010 -------- (Rupees in '000) --------82,438 6,354,585 6,437,023 9,059 6,597,166 6,606,225
9.1
Capital work-in-progress Civil works Advance payment towards property and equipment Consultants' fee and other charges
2011
3,815 77,890 733 82,438
2,387 6,252 420 9,059
9.2
Property and equipment Cost / Valuations At 1 January 2011 Additions during the year Transfers / write offs Deletions At 31 December 2011 Depreciation At 1 January 2011 Charge for the year Transfers / write offs Deletions At 31 December 2011 Net book value Rate of depreciation
--------------------------- (Rupees in '000) ---------------------------5,402,148 16,386 5,418,534 97,956 99,145 197,101 5,221,433 1,392,223 9,966 (121,540) 1,280,649 602,139 74,191 (34,938) 641,392 639,257 3,251,365 254,215 (23,881) (39,889) 3,441,810 2,755,999 257,987 (21,285) (39,788) 2,952,913 488,897 69,627 10,115,363 3,006 283,573 (145,421) (5,283) (45,172) 67,350 10,208,343 62,103 5,165 (4,916) 62,352 4,998 3,518,197 436,488 (56,223) (44,704) 3,853,758 6,354,585
6.67% 6.67%-10% 14.28% - 33.33% 33.33% 2010

Cost / Valuations At 1 January 2010 Additions during the year Transfers / write offs Deletions At 31 December 2010 Depreciation At 1 January 2010 Charge for the year Transfers / write offs Deletions At 31 December 2010 Net book value Rate of depreciation
--------------------------- (Rupees in '000) ---------------------------5,315,577 1,389,895 3,406,663 81,375 10,193,510 82,010 24,936 107,345 503 214,794 4,561 (17,888) (197,797) (211,124) (4,720) (64,846) (12,251) (81,817) 5,402,148 1,392,223 3,251,365 69,627 10,115,363 95,349 2,607 97,956 5,304,192 541,294 77,473 (12,856) (3,772) 602,139 790,084 2,665,450 349,686 (195,261) (63,876) 2,755,999 495,366 51,200 21,407 (10,504) 62,103 7,524 3,257,944 543,915 (205,510) (78,152) 3,518,197 6,597,166
6.67% 6.67%-10% 14.28% - 33.33% 33.33%

9.3 The Bank's owned land and buildings were revalued by an independent accredited professional valuer, Iqbal A. Nanjee & Co. (Private) Limited. The valuation performed by the valuer was based on active market prices, adjusted for any difference in the nature, location or condition of the specific land and building. The date of revaluation was 31 December 2009. The revaluation resulted in a net surplus of Rs. 3,599.739 million over the book value. If the owned land and buildings were measured using the cost model, the carrying amounts would have been as follows: 2011 2010 -------- (Rupees in '000) --------Cost Accumulated depreciation Carrying amount 2,268,407 (623,673) 1,644,734 2,252,021 (535,959) 1,716,062
The movement in surplus on revaluation of fixed assets is given in note 20.1 to the financial statements. 9.4 9.5 As at 31 December 2011, the cost of fully depreciated property and equipment still in use amounted to Rs. 2,848.861 million (2010: Rs. 2,518.206 million). Depreciation rates for furniture, fixtures and office equipment are as follows: Furniture and fixtures Printers Other office equipment Computer equipment ATM machines 9.6 33.33 33.33 20 33.33 14.28 percent percent percent percent percent
Details of disposal of fixed assets whose original cost or book value exceeds Rs. 1 million or Rs 250,000, which ever is less, and assets disposed of to the Chief Executive or to a director or to executives or to a shareholder holding not less than 10% of the voting shares of the bank or to any related party, irrespective of value, are given below:
Particulars Cost Accumulated depreciation 14,781 2,578 8,086 3,575 3,406 1,269 1,122 802 35,619 Book value 49 324 373 Sale Proceeds 2,012 88 1,722 57 898 173 339 513 5,802 Gain / (Loss) on Sale 2,012 39 1,722 57 898 173 339 189 5,429 Mode of Disposal Tender Tender Tender Tender Tender Tender Tender Employee Service Rules Particulars of Purchaser
------------------------------------- (Rupees in '000) -------------------------------------
Furniture, fixtures and office equipment
14,781 2,627 8,086 3,575 3,406 1,269 1,122 1,126 35,992
Vehicles Items having book value of less than Rs. 250,000 and cost of less than Rs. 1,000,000 Furniture, fixtures and office equipment Vehicles
M/S Ilyas Hussain Soomro M/S Muhammad Hashim & Sons M/S National Traders M/S Aslam Soomro M/S National Traders M/S Mohammad Ibrahim Osman Soomro M/S Farhan & Company Salman Dogar
5,023 4,157 45,172
4,971 4,114 44,704
52 43 468
757 1,781 8,340
705 1,738 7,872
10.
INTANGIBLE ASSETS
Goodwill Core deposits intangible
2011
Customer relationships intangible Brand names Computer Software Total
Cost At 1 January 2011 Additions during the year At 31 December 2011 Depreciation At 1 January 2011 Charge for the year Deletions/ write offs At 31 December 2011 Net book value Rate of amortisation
----------------------------------------- (Rupees in '000) -----------------------------------------26,095,310 26,095,310 26,095,310 1,982,413 1,982,413 1,761,348 162,924 1,924,272 58,141 774,680 774,680 681,430 39,350 720,780 53,900 389,400 389,400 168,933 38,932 207,865 181,535 341,308 397 341,705 289,452 27,804 317,256 24,449 20% 29,583,111 397 29,583,508 2,901,163 269,010 3,170,173 26,413,335

2010
Cost At 1 January 2010 Additions during the year Transfers / write offs At 31 December 2010 Depreciation At 1 January 2010 Charge for the year Transfers / write offs At 31 December 2010 Net book value Rate of amortisation
----------------------------------------- (Rupees in '000) -----------------------------------------26,095,310 26,095,310 1,982,413 1,982,413 774,680 774,680 389,400 389,400 302,448 38,860 341,308 29,544,251 38,860 29,583,111
26,095,310
1,521,572 239,776 1,761,348 221,065
609,335 72,095 681,430 93,250
129,998 38,935 168,933 220,467
257,174 32,278 289,452 51,856 20%
2,518,079 383,084 2,901,163 26,681,948
10.1 10.2
As at 31 December 2011, the gross carrying amount of fully amortised intangible assets (computer software) still in use amounted to Rs. 240.381 million (2010: Rs. 204.529 million). The recoverable amount for the purpose of assessing impairment on goodwill on acquisition of Union Bank Limited was based on value in use. The calculations are based on the 2012 budget and forecasts for subsequent three years as approved by management. These have then been extrapolated for a further period of 16 years using a steady long term forecast GDP growth rate and a terminal value determined based on a long term earnings multiple. The cash flows are discounted using a pre-tax discount rate which reflects the current market rate appropriate for the business. For the calculation as at 31 December 2011, the Bank has used a long term forecast GDP growth rate of 4.8 percent and a discount rate of 30.6 percent. The management believes that any reasonable possible changes to the key assumptions on which calculation of recoverable amount is based, would not cause the carrying amount to exceed the recoverable amount.
11.
DEFERRED TAX ASSETS The following are major deferred tax assets / (liabilities) recognised and movement thereon:
At 1 January 2011 2011 (Charge) / Debit/ credit to profit (credit) and loss to equity/ other comprehensive income At 31 December 2011
----------------------------------------- (Rupees in '000) ------------------------------------------
311,501 6,315,534 (42,328) (317,102) (37,110) (2,777,999) (23,381) 3,429,115
277,220 (35,541) 36,712 4,001 (808,803) (526,411) 2010
(189,834) 7,036 (182,798)
121,667 6,592,754 (77,869) (280,390) (33,109) (3,586,802) (16,345) 2,719,906
At 1 January 2011
(Charge) / credit to profit and loss
Debit/ (credit) to equity/ other comprehensive income 53,964 (759) 53,205
At 31 December 2010
----------------------------------------- (Rupees in '000) ------------------------------------------
257,537 6,424,738 (4,654) (376,819) (41,173) (2,007,554) (22,622) 4,229,453
(109,204) (37,674) 59,717 4,063 (770,445) (853,543)
311,501 6,315,534 (42,328) (317,102) (37,110) (2,777,999) (23,381) 3,429,115
11.1
The Finance Act, 2010 amended the Seventh Schedule to the Income Tax Ordinance, 2001 whereby the limit for claiming provisions for advances and off balance sheet items in respect of Consumer and SME advances has been enhanced from 1% to 5% of gross Consumer and SME advances. In case of Corporate advances, the limit continues to be 1% of gross Corporate advances.

The management carried out an exercise and based on that concluded that the Bank would achieve a deduction for provisions in excess of the limits prescribed by the Income Tax Ordinance, 2001 in future years. Accordingly, deferred tax asset of Rs. 2,353 million has been recognised on such provisions for income years 2009 upto 2011. The Seventh Schedule has been further amended through Finance Act, 2010 by introducing transitional provisions, whereby amounts provided for against irrecoverable or doubtful advances in tax year 2008 (income year 2007) and prior years, would be allowed in the tax year in which these advances are actually written off. The management considers that the amendment made vide Finance Act, 2009 in respect of provisions for bad debts being allowed at 1% of total advances is applicable for tax year 2010 (income year 2009), whereas for tax year 2009 (income year 2008), the provision for bad debts would continue to be allowed under the Seventh Schedule at the time of actual write-off. The deferred tax asset recognized upto December 31, 2008 relating to provisions for advances and off balance sheet items amounting to Rs. 4,240 million has been carried forward.
Note
12. OTHER ASSETS Income / mark-up accrued in local currency Income / mark-up accrued in foreign currencies Advances, deposits, advance rent and other prepayments Receivable from defined benefit plans Advance taxation (payments less provisions) Branch adjustment account Unrealized gain on forward foreign exchange contracts Interest rate derivatives and currency option - positive fair value Receivable from SBP / Government of Pakistan Receivable from associated undertakings Receivable from Standard Chartered Bank, Sri Lanka operations Non-banking assets acquired in satisfaction of claims Advances against future Murabaha Advance Federal Excise Duty Tax compensation under section 102 of the Income Tax Ordinance Bank acceptances Others
2011 2010 -------- (Rupees in '000) --------2,455,422 40,329 918,547 (222) 7,541,634 314,373 613,650 2,408,980 327,749 44,270 137,408 783,940 564,616 100,000 21,542,782 338,040 38,131,518 (566,339) 37,565,179 4,241,880 199,291 887,490 18,915 3,571,864 329,739 407,072 2,985,800 56,539 4,437 124,847 65,555 116,333 5,042,995 390,362 18,443,119 (310,540) 18,132,579
12.2
12.3
Provision against other assets
12.1
12.1
Provision against other assets Opening balance Charge for the year Reversal for the year Closing balance 310,540 255,799 566,339 215,051 96,726 (1,237) 310,540
12.2
Market value of non-banking assets acquired in satisfaction of claims amounted to Rs. 475.439 million at 31 December 2011 (2010: Rs. 91.983 million). Accordingly, the differential between carrying amount and market value has been provided. Included in these acceptances is Rs. 2,605.560 million (2010: Rs. 1,600 million) which have been further discounted by the Bank.
12.3
13.
BILLS PAYABLE In Pakistan Outside Pakistan
2011 2010 -------- (Rupees in '000) --------4,377,080 199,709 4,576,789 5,468,828 223,036 5,691,864
14.
BORROWINGS FROM FINANCIAL INSTITUTIONS In Pakistan Outside Pakistan 19,360,413 1,451 19,361,864 14,280,581 1,633,762 15,914,343
14.1
Particulars of borrowings with respect to currencies In local currency In foreign currencies 19,360,413 1,451 19,361,864
14,280,581 1,633,762 15,914,343


14.2 Details of borrowings secured / unsecured Secured Borrowings from State Bank of Pakistan under Export Refinance (ERF) scheme Repurchase agreement borrowings (Repo) State Bank of Pakistan - LTFF State Bank of Pakistan - LTF - Export Oriented Projects Unsecured Call borrowings Overdrawn nostro accounts 100,000 23,815 19,361,864 1,638,730 15,914,343
Note
2011 2010 -------- (Rupees in '000) ---------
14.2.1 14.2.2 14.2.3 14.2.4
15,261,066 1,792,417 2,163,538 21,028 19,238,049
12,875,118 1,369,379 31,116 14,275,613
14.2.5
14.2.1 Mark-up on Export Refinance (ERF) from State Bank of Pakistan is charged at 10.2 percent to 11 percent (2010: 8.5 percent to 9 percent) per annum. ERF borrowings also include borrowings under Islamic Export Refinance scheme amounting to Rs.1.923 billion (2010: 805 million). These borrowings are secured against demand promissory notes executed by the Bank in favour of State Bank of Pakistan. 14.2.2 Repurchase agreement borrowings carry mark-up rates ranging from 11.65 percent to 11.85 percent (2010: Nil percent) per annum payable at maturity and are due to mature by January 2012. 14.2.3 Mark-up on Long Term Finance Facility (LTFF) from State Bank of Pakistan is charged at rates ranging from 8.5 percent to 12.6 percent (2010: 7 percent to 9.5 percent) per annum. These loans are secured against promissory notes executed by the Bank in favour of State Bank of Pakistan. 14.2.4 Mark-up on Long Term Finance for Export Oriented Projects (EOP) from State Bank of Pakistan is charged at 6.5 percent to 7 percent (2010:5 percent) per annum. These loans are secured against promissory notes executed by the Bank in favour of State Bank of Pakistan. 14.2.5 These include overdrawn nostro accounts with other branches and subsidiaries of Standard Chartered Group outside Pakistan amounting to Nil (2010: Rs. 1,633.622 million).
Note
15. DEPOSITS AND OTHER ACCOUNTS Customers - Fixed deposits - Savings deposits - Current accounts (non-remunerative) - Margin accounts - Special exporters' account Financial Institutions - Non-remunerative deposits
2011 2010 -------- (Rupees in '000) --------37,616,096 103,552,834 92,865,197 559,710 540,657 235,134,494 45,968,703 90,327,218 81,549,312 951,052 930,283 219,726,568 461,320 220,187,888
15.1
740,090 235,874,584
15.1
This includes Rs.216.542 million (2010: Rs. 93.610 million) against balances of other branches and subsidiaries of Standard Chartered Group operating outside Pakistan.
Note
15.2 Particulars of deposits In local currency In foreign currencies
2011 2010 -------- (Rupees in '000) --------189,908,994 45,965,590 235,874,584 173,920,348 46,267,540 220,187,888
16.
SUB-ORDINATED LOANS Term Finance Certificates issued 16.1 699,200 1,135,900

16.1 The Bank issued subordinated Term Finance Certificates in three issues. The first and second issues of Rs. 750 million each was fully repaid during the year 2008 and 2011 respectively. The outstanding third issue of Rs. 1,000 million is unsecured and is subordinated to the depositors and other creditors of the Bank, and carry the following terms: Third Issue 2005 AAA 2.00% above the six months Karachi InterBank Offered Rate ("KIBOR") prevailing one working day prior to the beginning of each semi annual period 7 years
Year of Issue Rating Rate
Floor Ceiling Repayment
Note
17. OTHER LIABILITIES Mark-up / return / interest payable in local currency Mark-up / return / interest payable in foreign currencies Musharika and accrued profit thereon Certificates of Musharika Accrued expenses Advance payments Sundry creditors Unrealized loss on forward foreign exchange contracts Unrealized loss on interest rate derivatives and currency options Due to Holding Company Dividend payable Unclaimed balances Provision against off balance sheet obligations Worker's Welfare Fund (WWF) payable Short sell - Treasury Bills / Pakistan Investment Bonds Bank acceptances Security Deposits Certificates of Investment Unsettled trades Others
2011 2010 -------- (Rupees in '000) --------1,396,814 103,202 2,747,432 2,161,440 108,249 757,468 473,575 8,413,722 4,568,330 3,074 1,120,420 122,361 287,712 21,542,782 1,306,686 2,305,809 49,857 547,704 48,016,637 2,334,863 2,453 60,544 1,980,022 1,965,165 158,759 847,214 876,589 10,654,614 4,867,708 78,871 83,465 112,836 660,074 5,042,995 820,382 1,300,602 47,046 373,134 32,267,336
17.1 17.2
17.3
17.4
12.3
17.1 17.2
The estimated share of profit payable on participatory and unsecured Musharika facilities ranges from 13.87% to 14.50% per annum. The estimated share of profit payable on participatory and unsecured Musharika facilities ranges from 7.25% to 15.5% per annum and are due to mature by May 2014.
17.3
Due to Holding Company On account of reimbursement of executive and general administrative expenses Others
2011 2010 -------- (Rupees in '000) --------3,876,742 691,588 4,568,330 4,158,379 709,329 4,867,708
17.4
Provision against off-balance sheet obligations Opening balance Charge / (reversal) for the year Closing balance 83,465 38,896 122,361 86,518 (3,053) 83,465

18. 18.1 SHARE CAPITAL Authorized
Note
2011 2010 -------- (Rupees in '000) ---------
2011 2010 (Number of shares) 4,000,000,000

18.2
4,000,000,000
Ordinary shares of Rs.10 each
40,000,000
40,000,000
Issued, subscribed and paid-up
2,939,785,018
2,939,785,018
Ordinary shares of Rs. 10 each Fully paid in cash Issued in terms of scheme of amalgamation
29,397,850
29,397,850
931,800,003 3,871,585,021
18.3
931,800,003 3,871,585,021
18.3
9,318,000 38,715,850
9,318,000 38,715,850
These represent 892,554,151 shares of Rs 10 each issued and allotted at par to Standard Chartered Bank, United Kingdom against transfer of entire undertaking of SCB Branch Business by SCB to the Bank, and 39,245,852 shares issued and allotted at par credited as fully paid up to persons who were registered shareholders of Union Bank. These shares have been issued in accordance with the scheme of amalgamation duly approved by State Bank of Pakistan on 4 December 2006. At 31 December 2011, Standard Chartered Bank , United Kingdom, held 98.99% shares of the Bank.
18.4
Note 19. Reserves Share premium Statutory reserve

19.1 19.2 19.3
2011 2010 -------- (Rupees in '000) --------1,036,090 2,843,401 3,879,491 1,036,090 1,749,139 2,785,229
19.1 19.2
This represents excess of fair value of the shares over par value of shares issued to registered shareholders of Union Bank in terms of the amalgamation scheme. In accordance with the Banking Companies Ordinance, 1962, the Bank is required to transfer twenty percent of its profit of each year to a reserve fund until the amount in such fund equals the paid-up capital of the Bank. The Board of Directors in its meeting held on March 5, 2012 has announced a final cash dividend of 10% (Re. 1/- per share) in respect of the year ended December 31, 2011 (2010: Rs. 0.6 per share). These financial statements for the year ended December 31, 2011 do not include the effect of these appropriations which will be accounted for subsequent to the year end.
20.
SURPLUS / (DEFICIT) ON REVALUATION OF ASSETS - NET OF DEFERRED TAX Surplus / (deficit) arising on revaluation of: Fixed assets Securities
Note
2011 2010 -------- (Rupees in '000) ---------
20.1 20.2
3,543,590 (220,416) 3,323,174
3,551,020 (578,047) 2,972,973
20.1
Surplus on revaluation of fixed assets Surplus on revaluation of fixed assets as at 1 January Transferred to unappropriated profit in respect of incremental depreciation charged during the year - net of deferred tax Related deferred tax liability Surplus on revaluation of fixed assets as at 31 December - gross Less: Related deferred tax liability on: - Revaluation surplus as at 1 January - Revaluation surplus recorded during the year - Incremental depreciation charged during the year transferred to profit and loss account Surplus on revaluation of fixed assets as at 31 December - net of tax 3,588,130 3,599,739
(7,430) (4,001) (11,431) 3,576,699
(7,546) (4,063) (11,609) 3,588,130
(37,110) 4,001 (33,109) 3,543,590
(41,173) 4,063 (37,110) 3,551,020

Note 20.2 Surplus / (deficit) on revaluation of Avaiable for Sale securities Market Treasury Bills Pakistan Investment Bonds Sukuk and Ijarah Bonds Listed shares and units of mutual funds Related deferred tax asset 2011 2010 -------- (Rupees in '000) --------87,742 (434,030) (1,332) 5,537 (342,083) 121,667 (220,416) (34,198) (855,696) (108) 455 (889,547) 311,500 (578,047)
21. 21.1
CONTINGENCIES AND COMMITMENTS Transaction-related contingent liabilities Guarantees issued favouring: - Government - Others 21.1.1 35,465,770 25,987,687 30,962,886 16,542,077
21.1.1 Guarantees relating to Islamic Banking Business amount to Rs 2,025 million (2010: Rs 2,039 million). 21.2 Trade-related contingent liabilities Letters of credit 21.2.1 19,526,195 15,182,936
21.2.1 Letters of credit relating to Islamic Banking Business amount to Rs 2,860 million (2010: Rs 1,045 million). 21.3 Other contingencies Claims against the Bank not acknowledged as debt 21.3.1 13,293,575 12,432,208
21.3.1 This includes claims for penal interest and additional surcharge amounting to Rs. 136.361 million (2010: Rs.138.058 million) claimed by Customs authorities in respect of certain bank guarantees issued on behalf of a customer in favour of Collector of Customs, Government of Pakistan. The guarantees remaining outstanding against the said customer at 31 December 2011 amount to Rs.80.827 million (2010: Rs.80.827 million). The bank has referred the claims to Alternate Dispute Resolution (ADR) Committee, where it is yet to come up for a hearing. The bank considers that the above amounts are not payable and if it is required to settle the claims, it would be able to recover them from the customer. 21.4 Commitments in respect of forward foreign exchange contracts Purchase State Bank of Pakistan Other banks Customers Sale State Bank of Pakistan Other banks Customers The maturities of the above contracts are spread over a period of one year. 21.5 Commitments to extend credit The Group makes commitments to extend credit in the normal course of its business but these being revocable commitments do not attract any significant penalty or expense if the facility is unilaterally withdrawn.
2011 2010 -------- (Rupees in '000) --------8,873,750 34,228,360 8,517,556 19,914,750 17,348,621 15,368,507
34,427,185 2,259,646
2,176,875 33,108,590 1,290,420

21.6 Derivative instruments 2011 Interest Rate Swaps No. of Notional Contracts Principal* FX Options No. of Notional Contracts Principal *
21.6.1 Product analysis
Counterparties With Banks for Hedging Market Making With FIs other than banks Hedging Market Making With other entities for Hedging Market Making Total Hedging Market Making 2010 Total Market Making * At the exchange rate prevailing at the end of the reporting period.
---------------------------------- (Rupees in '000) --------------------------------
30 4 48 82 98
39,617,555 1,016,333 61,527,574 102,161,462 125,021,858
132 132 264 204
15,822,498 15,822,498 31,644,996 8,800,720
Contracts with banks represent contracts entered with branches of Standard Chartered Bank, UK to obtain cover against the contracts with customers, except for 11 contracts with local banks having notional principal of Rs. 17,304 million. 21.6.2 Maturity analysis Interest Rate Swaps Remaining Maturity Upto 1 month 1 to 3 months 3 to 6 months 6 month to 1 year 1 to 2 years 2 to 3 years 3 to 5 years 5 to 10 years Above 10 years
No. of Contracts Notional Principal Negative Mark to Market Positive Net
----------------------- (Rupees in '000) ------------------------
2 2 12 27 12 10 17 82
200,000 434,333 16,563,782 32,287,543 9,102,037 28,173,366 15,400,401 102,161,462
(119) (1,822) (2,731,258) (3,201,364) (1,383,376) (607,036) (234,172) (8,159,147)
8,765 263,842 874,076 14,703 745,726 405,600 2,312,712
(119) 6,943 (2,467,416) (2,327,288) (1,368,673) 138,690 171,428 (5,846,435)
22.
MARK-UP / RETURN / INTEREST EARNED On loans and advances to customers On loans and advances to financial institutions On investments in: i) Held for trading securities ii) Available for sale securities On deposits with financial institutions / the State Bank of Pakistan On securities purchased under resale agreements On call money lending
2011 2010 -------- (Rupees in '000) --------20,848,189 862,758 7,380 10,597,886 508,873 38 32,825,124 18,474,431 62,607 22,508 8,863,572 1,146,110 614 28,569,842

Note
23.
MARK-UP / RETURN / INTEREST EXPENSED Deposits Securities sold under repurchase agreements Call borrowings Borrowings from State Bank of Pakistan under Export Refinance (ERF) scheme Profit on redeemable capital, musharika and murabaha Term Finance Certificates (sub-ordinated loans) Others
2011 2010 -------- (Rupees in '000) --------9,544,849 34,851 294,645 1,434,570 260,367 127,984 210,447 11,907,713 9,347,142 308,725 12,569 792,920 223,991 171,716 159,203 11,016,266
24.
GAIN / (LOSS) ON SALE OF SECURITIES Federal Government Securities Market Treasury Bills Pakistan Investment Bonds Commercial Paper Equity Securities
226,532 659,030 885,562 885,562
763,027 46,182 809,209 3,426 (7,027) 805,608
25.
OTHER INCOME Income from Sri Lanka branch operations Rent on property Gain on disposal of fixed assets Loss on derivatives Others 25.1 & 25.2 12,561 39,145 7,872 (509,028) 183,345 (266,105) 40,246 32,908 10,029 (283,086) 317,212 117,309
25.1
Consequent to Sale and Purchase Agreement (SPA) signed between Standard Chartered Bank, Sri Lanka (SCBSL) and Standard Chartered Bank (Pakistan) Limited (SCBPL), the Sri Lanka branch operations of SCBPL were amalgamated with SCBSL with effect from close of business on 10 October 2008. According to the terms of SPA, unproductive debts, staff of SCBPL who are not retained by the purchaser, 'their corresponding housing loans and assets arising from litigation which cannot be assigned are held in trust with SCBSL. The income from Sri Lanka branch operations in the current year mainly represents recoveries (net of expenses) in respect of assets held in trust. Prior year amount has been reclassified from note 28 'Other Charges' for better presentation.
Note
25.2
26.
ADMINISTRATIVE EXPENSES Salaries, allowances, etc. Charge / (income) for defined benefit plans Contributions to defined contribution plans Rent, taxes, insurance, electricity, etc. Legal and professional charges Communications Repairs and maintenance Stationery and printing Advertisement and publicity Donations Auditors' remuneration Depreciation Amortization Traveling, conveyance and vehicles' running Reimbursement of executive and general administrative expenses Others
2011 2010 -------- (Rupees in '000) --------4,427,733 (966) 286,649 1,201,918 91,264 528,744 745,344 205,589 270,856 19,502 19,250 436,488 269,010 188,780 3,875,954 842,347 13,408,462 4,271,520 994 266,637 1,091,293 103,699 470,987 821,264 182,045 145,769 20,195 24,608 543,915 383,084 117,459 3,764,765 789,660 12,997,894
26.1 26.2

Note 26.1 Details of the donations given in excess of Rs. 100,000 are given below: Donee Institute of Business Administration (IBA) The Citizen Foundation The Kidney Centre Care Foundation Lahore University of Management Sciences SST Public School Rashidabad Rizwan Scholars HOPE AmanTech Foundation Bait-ul-Sukoon Trust 26.1.1 26.1.2 26.2
2011 2010 -------- (Rupees in '000) --------7,000 5,200 2,500 1,250 1,200 1,200 750 250 152 13,000 5,270 1,500 180 100
26.1.1
26.1.2
Mr. Mohsin Ali Nathani, CEO of the Bank is also a member of Board of Governors of The Kidney Centre. Mr. Shahid Zaki, non executive director of the Bank is also CEO of AmanTech Foundation. Auditors' remuneration Audit fee Fee for audit of pension, gratuity and provident funds Special certifications and others Taxation services Out-of-pocket expenses
2011 2010 -------- (Rupees in '000) --------17,045 603 680 922 19,250 16,872 400 3,438 3,208 690 24,608
27.
OTHER PROVISIONS / ASSET WRITE OFFS Asset write offs Other provsions Provision against receivable under cross currency swaps arrangement Overdue mark up suspended Provision against non-banking assets acquired in satisfaction of claims 89,198 309,984 309,984 399,182 29,051 179,464 208,515 17,362 96,726 341,306 438,032 455,394 60,119 117,146 177,265
28.
OTHER CHARGES Charge / (reversal) against fine and penalties imposed by SBP Worker's Welfare Fund (WWF)
29.
TAXATION For the year - Current - Deferred For prior years - Current - Deferred 2,506,776 526,411 3,033,187 3,033,187 8,586,328 3,005,215 51,386 (17,116) (6,298) 3,033,187 1,194,171 853,543 2,047,714 (30,884) (30,884) 2,016,830 5,757,685 2,015,190 21,042 (10,890) (8,512) 2,016,830
29.1
Relationship between tax expense and accounting profit Profit before taxation Tax at the applicable tax rate of 35% (2010: 35%) Expenses that are not deductible in determining taxable income Incomes (dividend, capital gain etc.) at reduced rates Others
29.2
Standard Chartered Bank (Pakistan) Limited The return for income year 2011 (tax year 2012) is due for filing by 30 September 2012. The tax department amended the assessments for income years 2007 to 2010 (tax years 2008 to 2011 respectively) under section 122 (5A) of the Income Tax Ordinance, 2001, determining additional tax liability of Rs. 8,461 million on account of various issues (such as disallowances of expenses relating to provision against loans and advances, goodwill amortisation etc). Appeals against the amended assessment orders are being contested before different appellate forums, however, the bank has discharged the aforesaid tax liability.

The management considers that a significant amount of the additional tax liability is the result of timing differences and is confident that the issues in the above mentioned tax years will be decided in favour of the Bank at appellate forums. Consequently, no additional provision is required. The Tax Authorities have passed an order levying Federal Excise Duty amounting to Rs. 114 million on certain items. The Bank is contesting the order in the appeal. The Bank has paid Rs.100 million under protest and the balance demand is legally stayed till the decision of the appeal. 29.3 Standard Chartered Bank Branch Operations The assessments have been finalized upto and including tax year 2006. The Banks / departmental appeals for the assessment / tax years 1976-77 to 2006 are pending before different appellate forums on various issues. The management expects favourable decisions in pending appeals and consequently, no additional provision is required. 29.4 Union Bank Limited The tax assessments for the assessment years 1993-94 through tax year 2007 are pending at various appeal forums against certain disallowances. The management expects favourable decision in pending appeals and consequently, no additional provision is required.
30.
EARNINGS PER SHARE - BASIC AND DILUTED Profit for the year attributable to equity holders of the bank Weighted average number of ordinary shares in issue during the year
2011 2010 -------- (Rupees in '000) --------5,471,308 3,664,412
--------------(Number)--------------3,871,585,021 3,871,585,021
--------------(Rupees)--------------Earnings per share - basic and diluted 31. CASH AND CASH EQUIVALENTS Cash and balances with treasury banks Balances with other banks 1.41 0.95
----------(Rupees in '000)---------26,293,151 3,204,253 29,497,404 24,087,885 921,931 25,009,816
32.
STAFF STRENGTH Permanent Temporary / on contractual basis / direct contracts Group's own staff at the end of the year Outsourced Total Staff Strength
--------------(Number)--------------3,067 3 3,070 1,920 4,990 3,123 2 3,125 1,795 4,920
33. 33.1
DEFINED BENEFIT PLANS General description Non Management Staff Pension Fund The plan provides pension calculated at 50% of the average pensionable salary after completing 30 years of service. The employees of the bank are entitled to either pension or gratuity, but not both. However, the employees of ANZ Grindlays Bank transferred to the bank are entitled to both pension and gratuity and the minimum number of years required for entitlement of pension is 25 years for these employees. Pension is calculated as 1/120 times the last drawn merged salary for each year of service. Non Management Staff Gratuity Fund The plan provides a lump sum gratuity calculated at one month's salary for each completed year of service (maximum 39 months) after completing 5 years of service. For the employees of ex-ANZ Grindlays Bank, the plan provides a lump sum calculated at 50% of last drawn merged salary for each completed year of service (maximum 40 months) after completing 5 years of service. However, if the employee is not entitled for pension, the percentage is increased to 100%. The employees of SCB are entitled to either pension or gratuity, but not both. Management Staff Pension Fund The plan is closed to active employees. The entire liability is in respect of existing pensioners.

33.2 Principal Actuarial Assumptions The last actuarial valuation of the scheme was carried out on 31 December 2011 and the key assumptions used for actuarial valuation were as follows:
2011
Discount rate Expected rate of increase in salary in future years Expected rate of return on plan assets Expected long term rate of increase in pension Mortality rate Withdrawal rate 13% p.a. 12% p.a. 5.5%-11.7% p.a. 7% p.a. LIC (1975-79) ultimate mortality table rated down one year Light
2010
13.2% p.a. 13.2% p.a. 13.66%-13.93% p.a. 7.2% p.a. LIC (1975-79) ultimate mortality table rated down one year Light
SCB Non Management Pension Fund 2011 2010 33.3 Reconciliation of (receivable) / payable from / to defined benefit plan Present value of defined benefit obligations Fair value of plan assets (Asset) / liability recognised 33.4 Movement in defined benefit obligation Obligation as at 1 January Current service cost Interest cost Benefits paid Actuarial (gain) / loss on obligation Past service cost resulting from change in Rules Obligation as at 31 December 33.5 Movement in fair value of plan assets Fair value as at 1 January Expected return on plan assets Contribution by the bank Benefits paid Actuarial gain / (loss) on plan assets Fair value as at 31 December 33.6 Movement in (receivable) / payable from / to defined benefit plan Balance as at 1 January Charge for the year Contribution to the fund during the year Actuarial (gain) / loss on plan assets Balance as at 31 December 33.7 Charge for defined benefit plan Current service cost Interest cost Expected return on plan assets Recognition of past service cost 448 7,135 (9,526) (1,943) 388 6,960 (8,652) (389) (1,693) (16,714) (1,943) 11,062 (7,595) (14,189) (1,693) (832) (16,714) 73,662 9,526 (6,121) (966) 76,101 72,888 8,652 (5,939) (1,939) 73,662 56,948 448 7,135 (6,121) 10,096 68,506 58,699 388 6,960 (5,939) (2,771) (389) 56,948 68,506 (76,101) (7,595) 56,948 (73,662) (16,714)
SCB Non Management Gratuity Fund 2011 2010
SCB Management Pension Fund 2011 2010
Total 2011 2010
(Rupees in '000)
55,950 (41,739) 14,211
42,222 (37,182) 5,040
45,189 (51,583) (6,394)
39,094 (46,335) (7,241)
169,645 (169,423) 222
138,264 (157,179) (18,915)
42,222 1,803 5,530 6,395 55,950
35,574 1,490 4,414 (896) 1,640 42,222
39,094 5,156 (6,680) 7,619 45,189
42,667 4,949 (5,632) (2,890) 39,094
138,264 2,251 17,821 (12,801) 24,110 169,645
136,940 1,878 16,323 (11,571) (6,557) 1,251 138,264
37,182 5,135 (578) 41,739
34,931 4,333 (2,082) 37,182
46,335 6,377 (6,680) 5,551 51,583
46,861 5,473 (5,632) (367) 46,335
157,179 21,038 (12,801) 4,007 169,423
154,680 18,458 (11,571) (4,388) 157,179
5,040 2,198 6,973 14,211
643 3,211 1,186 5,040
(7,241) (1,221) 2,068 (6,394)
(4,194) (524) (2,523) (7,241)
(18,915) (966) 20,103 222
(17,740) 994 (2,169) (18,915)
1,803 5,530 (5,135) 2,198
1,490 4,414 (4,333) 1,640 3,211
5,156 (6,377) (1,221)
4,949 (5,473) (524)
2,251 17,821 (21,038) (966)
1,878 16,323 (18,458) 1,251 994
33.8
Actual return on plan assets - Expected return on plan assets - Actuarial gain / (loss) on plan assets 9,526 (966) 8,560 8,652 (1,939) 6,713 5,135 (578) 4,557 4,333 (2,082) 2,251 6,377 5,551 11,928 5,473 (367) 5,106 21,038 4,007 25,045 18,458 (4,388) 14,070
33.9
Cumulative amount of actuarial gains / (losses) recoginised in comprehensive income Expected contributions for next year Components of plan assets as a percentage of total plan assets Bonds Cash and net current assets Others
18,923 -
29,985
(12,408) -
(5,435)
40,185 -
42,253
46,700 -
66,803
33.10 33.11
94% 6% 0%
97% 3% 0%
89% 11% 0%
99% 1% 0%
18% 82% 0%
98% 2% 0%

2011 2010 2009 2008 2007
33.12
Five year data on surplus / (deficit) of the plans and experience adjustments Present value of defined benefit obligation Fair value of plan assets Deficit / (Surplus) Experience adjustments on plan liabilities - loss / (gain) Experience adjustments on plan assets - loss / (gain)
----------------------------- (Rupees in '000) -----------------------------169,645 169,423 222 (741) (3,889) 138,264 157,179 (18,915) (4,247) 330 136,940 154,680 17,740 (7,621) 3,566 112,326 148,852 36,526 (7,620) (3,027) 243,948 333,183 89,235 (26,188) (22,440)
34.
SHARE BASED PAYMENTS The Bank's employees participate in the following share compensation plans operated globally by the ultimate holding company, Standard Chartered PLC (SCPLC). For employees in Pakistan, the Group operates cash equivalent or "phantom" arrangements under which employees can receive a cash benefit linked to either the growth in Group's share (Sharesave scheme) or the value of the Group's share (restricted / performance share awards). The arrangement does not give an option to the Bank's employees to buy SCPLC shares. The market value of shares is denominated in pounds sterling at the time of grant. i) Standard Chartered Share Plan (the 2011 Plan) The 2011 Standard Chartered Share Plan replaced all the Groups existing discretionary share plan arrangements following approval by shareholders at the Groups Annual General Meeting on 5 May 2011. It is the Groups main share plan, applicable to all employees with the flexibility to provide a variety of award types including performance shares, deferred awards (shares or cash) and restricted shares. Performance and restricted share awards will generally be in the form of nil price options to participate in the shares of SCPLC. The remaining life of the plan is ten years. Movements in the number of share options held by the Bank's employees are as follows:Weighted average exercise price Number ('000) per share 2011 Weighted average exercise price Number ('000) per share 2010
27 (1) 26
The weighted average price at the time the options were exercised during 2011 was NIL (2010: NIL).
2011 Weighted average exercise price No. of options 26
Weighted average remaining life Expected Contractual years years
2010 Weighted average exercise price No. of options Weighted average remaining life Expected Contractual years years
Range of exercise price

NIL
10
6.5 / 9.4
ii)
International Sharesave Scheme The International Sharesave Scheme was first launched in 1996 and made available to all employees of the Bank. Employees have the choice of opening a three-year or a five-year savings contract. Within a period of six months after the third or fifth anniversary, employees may exercise the awards and receive any benefit in cash; alternatively, the employee may elect to have the savings, plus interest, repaid in cash. The price at which they may purchase shares is at a discount of up to 20 percent on the share price at the date of the invitation. There are no performance conditions attached to options granted. The options granted do not confer any right to participate in any share issue of any other company. Movements in the number of share options held by the Bank's employees are as follows:
109 42 (14) (19) 118
11.67 10.65 9.97 11.02 11.42
112 28 (13) (23) 5 109
10.44 15.19 10.15 9.44 11.28 11.67

2011 Range of exercise price Weighted average exercise price 11.42 No. of options 118 Weighted average remaining life Weighted average Expected Contractual years years exercise price 3.33/5.33 2.4 10.43 No. of options 109
2010 Weighted average remaining life Expected Contractual years years 3.33/5.33 2.19
8.32/14.63
The intrinsic value of vested International Sharesave cash-settled awards as at 31 December 2011 was 6,636 thousand (2010: Rs. 19,688 thousand).
iii) Restricted Share Scheme The Restricted Share Scheme is a discretionary share incentive scheme for high performing and high potential staff at any level of the organisation whom the Group wishes to motivate and retain. Except upon appointment when an executive director may be granted an award of restricted shares, the Restricted Share Scheme is not applicable to the Group's executive directors, as it has no performance conditions attached to it. Fifty per cent of the award vests two years after the date of the grant and the remainder after three years. The awards granted under this scheme are Nil cost options with any benefit payable in cash. The options granted do not confer any right to participate in any share issue of any other company. Movements in the number of share options held by the Bank's employees are as follows:Weighted average exercise price Number ('000) per share 2011 Weighted average exercise price Number ('000) per share 2010
At 1 January Granted during the year Exercised during the year Lapsed during the year Adjusment due to right issue At 31 December
116 18 (21) (3) 110
99 59 (38) (9) 5 116
2011 Range of exercise price Weighted average exercise price No. of options 110 Weighted average remaining life Weighted average Expected Contractual years years exercise price 3.87 No. of options 116 2010 Weighted average remaining life Expected Contractual years years 5.4
N/A
The intrinsic value of vested Restricted Share Scheme cash-settled awards as at 31 December 2011 was Rs. 32,870 thousand (2010 : Rs. 54,530 thousand).
iv) Supplementary Restricted Share Scheme The Group operates a Supplementary Restriced Share Scheme which can be used to defer part of an employee's annual bonus in shares. The plan is principally used for employees in the global markets area and is similar to the RSS outlined above for three important factors: executive directors are specifically prohibited from the plan; no new shares can be issued to satisfy awards; and there is no individual annual limit. Movements in the number of share options held by the Bank's employees are as follows:Weighted average exercise price Number ('000) per share 2011 Weighted average exercise price Number ('000) per share 2010
2011 Range of exercise price Weighted average exercise price No. of options 2
6 1 (5) 2
2010 No. of options 6
5 6 (2) (3) 6
Weighted average remaining life Weighted average Expected Contractual years years exercise price 5 6.29 -
Weighted average remaining life Expected Contractual years years 5 2.08
N/A
The intrinsic value of vested Supplementary Restricted Share Scheme cash-settled awards as at 31 December 2011 was Rs. 4,487 thousand (2010 : Rs. 3,191 thousand). v) Executive Share Option Scheme (closed) The Executive Share Option Scheme is an intrinsic part of the Group's executive directors' and senior managers' total remuneration. An EPS performance criterion needs to be met before the options can be exercised. Executive share options are exercisable after the third, but before the tenth anniversary of the date of grant with any benefit payable in cash. The exercise price is based on the the share price at the date of grant and options can normally only be exercised if a performance condition is satisfied. The options granted do not confer any right to participate in any share issue of any other company.

Movements in the number of share options held by the Bank's employees are as follows:2011
Weighted average exercise price Number ('000) per share
Weighted average exercise price Number ('000) per share
2010
At 1 January Granted during the year Exercised during the year Lapsed during the year At 31 December
2011 Range of exercise price Weighted average exercise price No. of options -
2010 No. of options -
1 (1) -
8.19 8.19
Weighted average remaining life Weighted average Expected Contractual years years exercise price -
Weighted average remaining life Expected Contractual years years 5 -
NIL
The intrinsic value of vested Executive Share Option Scheme cash-settled awards as at 31 December 2011 was Rs. Nil (2010: Rs. Nil).
vi) Performance Share Plan The Performance Share Plan is designed as an intrinsic part of total remuneration for the Group's executive directors and for a small number of the Group's most senior executives. The awards granted under this scheme are Nil cost options. Certain performance criteria need to be met before the options can be exercised. The option granted do not confer any right to participate in any share issue of any other company. Movements in the number of share options held by the Bank's employees are as follows:2011 Number ('000) 2010 Number ('000)
2011 Range of exercise price Weighted average exercise price No. of options 39
73 (20) (14) 39
2010 No. of options 73
85 10 (21) (4) 3 73
Weighted average remaining life Weighted average Expected Contractual years years exercise price 7.85/9.44 -
Weighted average remaining life Expected Contractual years years 7.76
N/A
The intrinsic value of vested Performance Share Plan cash-settled awards as at 31 December 2011 was Rs. 3,574 thousand (2010: Rs. 14,978 thousand). vii) The total expense recognised in respect of above schemes on equity settled basis amounts to Rs. 95.760 million (2010: Rs. 47.733 million) and is also included in managerial remuneration note 35. As also explained in note 3.20 in detail, the Bank's liability towards its parent, however continues to be determined and recorded on cash settled basis.

35. COMPENSATION OF CHIEF EXECUTIVE AND EXECUTIVES Chief Executive Directors Executives
2011
Note Director's remuneration / fees Managerial remuneration Contribution to defined contribution plan Rent and house maintenance Utilities Medical Others 35.1 35.3
2010
2011
2010
2011
2010
----------------------------------- (Rupees in '000) -----------------------------------93,496 3,422 7,467 1,867 234 106,486 1 264,439 3,214 7,013 1,753 1,097 277,516 2 3,580 3,580 3 3,355 3,355 3 1,938,739 189,632 420,659 103,475 11,729 191,030 2,855,264 915 1,700,660 153,530 342,019 87,664 8,518 80,936 2,373,327 822
Number of persons
35.1
The director's remuneration / fees represents remuneration paid to the Bank's 3 non-executive directors (2010: 3) for attending Board and Sub-Committee meetings. The Chief Executive is entitled to Bank provided free use of furnished accommodation. The Chief Executive and some of the executives are also provided with Bank maintained cars. In addition, the Chief Executive and some of the executives are also reimbursed for cost of medical expenses and other benefits like club subscription, education etc. Managerial remuneration also includes charge against share compensation plans. FAIR VALUE OF FINANCIAL INSTRUMENTS Except for investment unlisted companies, fixed term advances of over one year, staff loans and fixed term deposits of over one year, the fair value of on balance sheet financial assets and liabilities are not significantly different from their book value as these assets and liabilities are either short term in nature or are frequently re-priced. The fair value of fixed term advances of over one year, staff loans, fixed term deposits of over one year and investment in equity of unlisted companies cannot be calculated with sufficient reliability due to non-availability of relevant active market for similar assets and liabilities. The fair value of investment classified as held to maturity amounted to Rs.201.954 million (2010: Rs. 331.247 million).
35.2
35.3 36.

37. SEGMENT DETAILS WITH RESPECT TO BUSINESS ACTIVITIES Segment analysis with respect to business activity 2011 Internal income Net mark-up / return / interest income Non mark-up / non interest income Operating income Non mark-up / non interest expenses Internal non mark-up / non interest expenses Operating profit before provisions and taxation Direct write-offs / provisions against non-performing loans and advances - net of recoveries Provision for diminution in the value of investments Profit before taxation Other segment items: Depreciation on tangible fixed assets Amortisation on intangible assets Segment assets (gross) Segment non performing loans Segment provision required Segment liabilities Segment return on net assets (ROA) (%) Segment cost of funds (%) 2010 Internal income Net mark-up / return / interest income Non mark-up / non interest income Operating income Non mark-up / non interest expenses Operating profit before provisions and taxation Direct write-offs / provisions against non-performing loans and advances - net of recoveries Provision for diminution in the value of investments - net Profit before taxation Other segment items: Depreciation of tangible fixed assets Amortisation of intangible assets Segment assets (gross) Segment non performing loans Segment provision required Segment liabilities Segment return on net assets (ROA) (%) Segment cost of funds (%) * Segment ROA = Net income / (Segment assets - Segment provisions) (10,479,598) 17,627,821 3,635,466 10,783,689 4,171,791 6,611,898 1,021,935 5,698 5,584,265 84,704 73,332 289,176,218 13,154,634 11,138,025 108,584,859 2.01% 6.34% 10,479,598 (74,245) 2,558,431 12,963,784 9,458,762 3,505,022 3,331,602 173,420 459,211 309,752 57,450,778 9,426,756 7,853,690 166,612,472 0.35% 3.51% 17,553,576 6,193,897 23,747,473 13,630,553 10,116,920 4,353,537 5,698 5,757,685 543,915 383,084 346,626,996 22,581,390 18,991,715 275,197,331 1.76% 4.53%
Wholesale Consumer Banking Banking Total -------------- (Rupees in '000) -------------(12,553,240) 21,554,687 3,824,175 12,825,622 4,306,251 82,304 8,436,067 2,544,488 27,109 5,864,470 58,376 51,033 323,588,088 15,082,385 13,441,180 125,114,237 1.89% 1.91% 12,909,222 (637,276) 2,368,378 14,640,324 9,708,908 273,678 4,657,738 1,935,880 2,721,858 378,112 217,977 63,565,124 11,020,172 8,903,431 183,414,837 4.98% 5.10% 355,982 20,917,411 6,192,553 27,465,946 14,016,159 355,982 13,093,805 4,480,368 27,109 8,586,328 436,488 269,010 387,153,212 26,102,557 22,344,611 308,529,074 2.35% 2.36%
* **
* **
** Segment cost of funds have been computed based on the average balances. The management reviews the performance of Corporate and Institutional Banking and Global Markets as one business segment, namely Wholesale Banking. Therefore the business activities of the group have been presented in two segments, Wholesale and Consumer Banking. Wholesale banking Deposits, trade and other lending activities (including murahaba and ijarah) for corporates and financial institutions. It also includes the overall management of treasury of the Bank, which entails various cash and interest risk management products for customers. The products include FX forwards, FX options and interest rate swaps. Consumer Banking Wealth management, deposits, mortgages, auto finance, unsecured lending (credit cards, personal loans etc.) , consumer leases and SME lending (including SME trade).

38. RELATED PARTY TRANSACTIONS Related parties comprise of Standard Chartered Plc., ultimate parent company, its other subsidiaries and branches, key management personnel, employees' retirement benefit funds and other associated undertakings. The transactions with related parties are conducted at commercial terms. The Group also provides advances to employees at reduced rates in accordance with their terms of employment. The transactions and balances with related parties are summarised as follows:
Note
OUTSTANDING BALANCES Group Nostro balances with other subsidiaries and branches of the holding company Overdrawn nostro balances with other subsidiaries and branches of the holding company Vostro balances of other subsidiaries and branches of the holding company Placements with other subsidiaries and branches of the holding company Deposits of group companies Due to holding company Due to group companies Due from associated undertakings Interest receivable from group companies Inter-company derivative assets Inter-company derivative liabilities Other receivables Key management personnel Loans and advances to key management personnel Deposits of key management personnel Others Deposits by staff retirement benefit funds Deposits by customers with common directorship (Payable to) / receivable from defined benefit plans Derivative asset Derivative liabilities PROFIT AND LOSS Group Mark-up / interest / income earned Mark-up / interest expensed Fee and commission expense Fee and commission income Reimbursement of executive and general administrative expenses Payment to group company for direct sales services rendered Administrative expenses including rent & other charges Net loss / (gain) on inter-company derivatives Royalty expense Key management personnel Mark-up / interest / income earned Mark-up / interest expensed Sale of vehicles Salaries and benefits Post retirement benefits Remuneration / fee paid to non-exective directors Others Contribution to defined contribution plans - net of payments received Charge for defined contribution plans Net (income) / charge for defined benefit plans Mark-up / interest expensed on deposits of staff retirement benefit funds Mark-up / interest expensed on deposits of customers with common directorship Donation to The Kidney Centre Donation to Aman Tech Foundation Net loss on derivatives
2011 2010 -------- (Rupees in '000) ---------
2,986,847 216,542 10,354,397 11,731 4,568,330 32,803 179,828 137 782,787 800,435 356 126,737 89,958 72,074 670 (222) 8,747 35,762
758,120 1,633,622 93,610 23,964,247 12,890 4,867,708 19,059 128,720 23,327 885,244 1,004,935 563 117,187 42,834 50,921 885 18,915 231 831
82,247 2,554 83,768 46,758 3,875,954 536,781 3,633 102,042 136,512 6,178 1,038 361,116 17,128 3,580 286,649 286,649 (966) 8,461 38 2,500 152 26,415
69,133 811 88 773 3,764,765 539,504 (17,904) 48,539 5,585 1,430 86 498,809 15,259 3,355 162,176 266,637 994 3,482 120,992 25 17,292
26.1.1 26.1.2

38.1 Net movements in loans and deposits are summarised as follows:
Balance as at Net Net 31 December disbursement / repayments / 2010 deposits withdrawals Balance as at 31 December 2011
Loans and advances Key Management Personnel Others Deposits Group companies Key Management Personnel Others 39. 39.1 CAPITAL ASSESSMENT AND ADEQUACY Capital Structure
---------------------- (Rupees in '000) ------------------------117,187 103,180 (93,630) 126,737 -
12,890 42,834 51,806
576,636 677,773 50,989,904
(577,795) (630,649) (50,968,966)
11,731 89,958 72,744
The Bank's lead regulator, State Bank of Pakistan (SBP) sets and monitors capital requirements for the Bank as a whole. Effective 31 December 2008, SBP has advised all banks to calculate their capital requirements based on Basel II accord under the Standardised approach. The transition to the 'Advanced Approaches' of Basel II has been made discretionary for banks, and is subject to prior written approval from SBP. The State Bank of Pakistan through its BSD Circular No.07 of 2009 dated 15 April 2009 requires the minimum paid up capital (net of losses) for all locally incorporated banks to be raised to Rs. 10 billion by the year ending on 31 December 2013. The raise is to be achieved in a phased manner requiring Rs. 8 billion paid up capital (net of losses) by the end of the financial year 2011. The paid up capital of the Bank is comfortably in compliance with the SBP requirement. Furthermore, SBP requires the Bank to maintain a prescribed total capital to total risk-weighted assets ratio. As at the year end, SBP's minimum prescribed capital adequacy ratio is 10 percent. The Bank's ratio is compliant with this minimum benchmark. Banking operations are categorised in either the trading book or the banking book, and risk-weighted assets are determined according to specified requirements that seek to reflect the varying levels of risk attached to assets and off-balance sheet exposures. The Banks regulatory capital is analysed into three tiers: Tier I capital, which includes ordinary share capital, balance in share premium account, reserve for issue of bonus shares, general reserves as disclosed on the balance sheet (except those included in Tier II) and un-appropriated profits (net of accumulated losses, if any). Goodwill and other intangibles are deducted from Tier I capital. Tier II capital includes sub-ordinated debt, revaluation reserves on assets, exchange translation reserves and impairment allowances that are not held against identified debts. Sub-ordinated debt is limited to 50 percent of Tier I capital. Information on the terms, conditions and other features of the Bank's sub-ordinated debt currently in issue is given in note 16 to these financial statements. Revaluation reserves are eligible upto 45 percent for treatment as Tier II capital. There is also a restriction on the amount of impairment allowances that are not held against identified debts upto 1.25 percent of total risk weighted assets. Tier III supplementary capital consists of short term sub-ordinated debt solely for the purpose of meeting a proportion of the capital requirements for market risk. The Bank currently does not have any Tier III capital.
Total of Tier II and III capital is limited to Tier I capital. 50 percent of the amount of investments in subsidiaries and associates not consolidated on the balance sheet is deducted from both Tier I and Tier II capital.

2011 2010 -------- (Rupees in '000) --------Tier I Capital Fully paid-up capital Balance in share premium account General reserves as disclosed on the balance sheet Un-appropriated/ un-remitted profits (net of accumulated losses, if any) Minority in equity of subsidiaries Less: Book value of goodwill and other intangibles Total Tier I Capital------------> Tier II Capital Sub-ordinated debt - upto maximum of 50 percent of 'Total eligible Tier 1 capital' General provisions or general reserves for loan losses - upto maximum of 1.25 percent of 'Risk Weighted Assets' Revaluation reserves (upto 45 percent) Total Tier II Capital------------> Total Regulatory Capital Base 39.2 Capital Adequacy The Banks capital management approach is driven by its desire to maintain a strong capital base to support the development of its business, to meet regulatory capital requirements at all times and to maintain good credit ratings, maximising shareholder value and at the same time maintaining investor, creditor and market confidence. The capital position is reviewed and monitored by the Asset and Liability Committee (ALCO) of the Bank. Regular reviews help to ensure that adequate levels of capital and an optimum mix of the different components of capital are maintained by the Bank to support the strategy. This is integrated with the Banks annual planning process that takes into consideration business growth assumptions across products and business segments and the related impact on capital resources. The following matters are taken into account while reviewing the Bank's capital position: a) b) c) d) current regulatory capital requirements and our assessment of future standards; demand for capital due to business growth forecasts; forecasted demand for capital to support credit ratings and as a signalling tool to the market; available supply of capital and capital-raising options 38,715,850 1,036,090 2,843,401 8,940,420 799,803 (26,413,335) 25,922,229 38,715,850 1,036,090 1,749,139 6,838,790 787,227 (26,681,948) 22,445,148
50,000 641,494 1,458,137 2,149,631 28,071,860
379,360 667,596 1,214,363 2,261,319 24,706,467
For calculation of Capital Adequacy Ratio, the bank adheres to the calculation of capital requirements for credit, market and operational risk as per the guidelines of SBP, for Basel II. For credit risk, the Bank uses the 'Standardized Approach'. The Bank uses reputable and SBP approved rating agencies (ECAIs) for deriving risk weights for specific credit exposures. These are consistently applied across the Bank's credit portfolio for both on and off balance sheet exposures. The ECAIs used for rating various types of exposures are tabled in note 39.3 to these financial statements. For the purposes of Credit Risk Mitigation under the 'Standardised Approach', the Bank follows the instructions laid down by SBP vide their Circular No. 08 dated 27 June 2006 with regard to eligibility of collaterals, valuation and management. Where a transaction is secured by an eligible collateral and meets the eligibility criteria and minimum requirements as laid down by SBP, the Bank reduces its exposure under that particular transaction by taking into account the risk mitigating effect of the collateral for the calculation of capital requirement. Collaterals used include: Government of Pakistan guarantees, Inter-group guarantees, margins / liens and saving certificates. The Bank calculates its capital requirement for market risk in its portfolio, based on the methodology provided by SBP which takes account of specific and general market risk capital charge for interest rate risk using the duration method.

For calculation of operational risk capital charge, the business activities of the Bank are divided into eight business lines: corporate finance, trading and sales, retail banking, commercial banking, payments and settlement, agency services, asset management and retail brokerage. The Bank's operations are mapped into these eight business lines as per the criteria laid down by SBP vide Circular No 08 dated 27 June 2006. Within each business line, gross income is the broad indicator that serves as a proxy for the scale of business operations and thus the likely scale of operational risk exposure within each of these business lines. The capital charge for each business line is calculated by multiplying gross income by beta factors assigned by SBP to that business line. Beta serves as a proxy for the industry-wide relationship between the operational risk loss experience for a given business line and the aggregate level of gross income for that business line. The total capital charge is calculated as the three-year average of the simple summation of the regulatory capital charges across each of the business lines in each year. The 'Standardised Approach' is preferred over the 'Basic Indicator Approach' so as to arrive at a capital charge that is reflective of the risks associated with each of the Bank's business lines. The Bank's approach for mitigating operational risk is further detailed in note 40.9 to these financial statements. The capital requirements for the Bank as per the major risk categories are indicated below :
Capital Requirements 31 December 2011 Credit Risk Portfolios subject to 'Standardized Approach' - Simple Government of Pakistan and State Bank of Pakistan Public Sector Entities Banks Corporate Portfolio Retail Portfolio Residential Mortgage Finance Past Due Portfolio All other Risk Weighted Assets Market Risk Capital Requirement for portfolios subject to 'Standardized Approach' Interest Rate Risk Foreign Exchange Risk Operational Risk Capital Requirement for operational risk - 'Standardised Approach' TOTAL Capital Adequacy Ratio Total eligible regulatory capital held (Note 39.1) Total Risk Weighted Assets Capital Adequacy Ratio (a) / (b) (a) (b) 4,554,957 21,201,394 2011 28,071,860 212,013,937 13.24% 4,294,567 19,402,408 45,549,571 212,013,937 2010 24,706,467 194,024,114 12.73% 42,945,677 194,024,114 261,190 61,304 143,012 163,090 2,611,901 613,037 1,430,120 1,630,902 2,869 323,327 1,424,926 12,041,326 755,585 137,910 423,276 1,214,724 1,908 147,870 1,934,755 9,566,822 1,164,719 164,173 369,381 1,452,111 28,689 3,233,271 14,249,260 120,413,259 7,555,854 1,379,102 4,232,757 12,147,236 19,083 1,478,701 19,347,553 95,668,225 11,647,198 1,641,732 3,693,810 14,521,113 31 December 2010 Risk Weighted Assets 31 December 2011 31 December 2010
---------------------- (Rupees in '000) -------------------------

(Rupees in '000) Credit Exposures subject to Standardised approach Exposures
Corporate Rating Category 0% 20% 50% 100% 150% 0% 20% 50% 100% 150% 0% 20% 50% 100% 150% Amount outstanding* 20,464,724 3,411,308 2,282,744 3,853,768 30,658,409 16,620,714 652,402 353,733 126,433,993 15,148,271 28,689 -
2011
Deduction/ CRM** 14,871,966 1,186,061 (1,926,884) 26,306,479 8,320,559 (176,866) 126,433,993 12,289,605 22,099,479 6,910,177 215,954,569 Net amount 5,592,758 2,225,247 2,282,744 5,780,652 4,351,930 8,300,155 652,402 530,599 2,858,666 28,689 112,876,490 17,759,094 163,239,426 Amount outstanding 13,002,568 7,309,581 1,632,997 5,812,798 21,435,706 29,016,100 746,352 329,760 86,219,814 4,247,859 19,083 132,106,080 26,533,828 328,412,526
2010
Deduction/ CRM** 8,495,639 2,826,557 (2,906,399) 18,319,473 14,508,050 (164,880) 86,219,814 3,398,287 43,021,393 6,677,177 180,395,111 Net amount 4,506,929 4,483,024 1,632,997 8,719,197 3,116,233 14,508,050 746,352 494,640 849,572 19,083 89,084,687 19,856,651 148,017,415
Banks
Sovereigns etc
Unrated including retail All Other Exposures Total CRM= Credit Risk Mitigation
50% upto 150% 134,975,969 23,949,271 378,833,995
* Amount outstanding represents Original Exposure in the case of On-balance sheet items and the Credit Equivalent Exposure in the case of Off-balance sheet items ** Deduction/CRM reflects reduction in exposures due to ratings and collaterals. 39.3 Types of exposures and ECAI's used Corporate JCR - VIS PACRA STANDARD AND POORS MOODY'S FITCH Banks Sovereigns
The Bank adheres to the mapping instructions issued by SBP on the Revised Regulatory Capital Framework under Basel II, issued vide BSD Circular No. 8 of 2006 dated 27 June 2006, vide BSD Circular Letter No. 09 of 2007 dated 24 August 2007, vide BSD Letter No. BSD/BAI-2/201/1141/2009 dated 2 December 2009 and vide BSD Circular No. 5 of 2010 dated 5 October 2010 with regard to credit ratings to be used. These are as follows:
LONG-TERM RATING GRADES MAPPING

Risk Weightage
20%


Aaa Aa1 Aa2 Aa3 A1 A2 A3 Baa1 Baa2 Baa3 Ba1 Ba2 Ba3 B1 B2 B3 Caa1 Caa2 Caa3 Ca C
Fitch Ratings
PACRA
JCR VIS
50% 100% 100% 150% 150%
SHORT-TERM RATING GRADES MAPPING

Risk Weightage
20% 50% 100% 150%

A-1+ A-1 A-2 A-3 B B-1 B-2 B-3 C

P-1 P-2 P-3 NP
Fitch Ratings
F1+ F1 F2 F3 B C D
PACRA
A-1 A-2 A-3 Others
JCR VIS
A-1 A-2 A-3 Others

40. RISK MANAGEMENT Through its risk management structure, the Bank seeks to manage efficiently the core risks: credit, market, country, and liquidity risk. These arise directly through the Banks commercial activities whilst compliance and regulatory risk, operational risk and reputational risks are normal consequences of any business undertaking. The basic principles of risk management followed by the bank include: Balancing risk and return Risk is taken in line with the requirements of the Banks stakeholders. Risk should be taken within the Bank's risk appetite, consistent with the approved strategy. Any such risks are avoided which have a material probability of causing financial distress to the Bank or its clients or customers. Responsibility Given the Bank is in the business of taking risk, it is everyones responsibility to ensure that risk taking is both disciplined and focused. The Bank takes account of its social responsibilities and its commitment to customers in taking risk to produce a return. Accountability Risk is taken only within agreed authorities and where there is appropriate infrastructure and resource. All risk taking must be transparent, controlled and reported. Anticipation The Bank looks to anticipate future risks and to ensure awareness of all risk. Competitive Advantage The Bank seeks to achieve competitive advantage through efficient and effective risk management and control. Risk management The Bank aims to implement best practices and have a specialist risk function of international standards, with strength in depth, experience across risk types and economic scenarios. Ultimate responsibility for the effective management of risk rests with the Companys Board of Directors. Acting within an authority delegated by the Board, the Executive Committee reviews specific risk areas and monitors the activities of the Risk Committee (RC) and the Asset and Liability Committee (ALCO). RC headed by Chief Risk Officer (CRO), through authority delegated by the Board through the Banks Executive Committee, is responsible for credit risk, market risk, operational risk, compliance risk and regulatory risk, legal risk and reputational risk. ALCO, through authority delegated by the Board through the Banks Executive Committee, is responsible for management of the Bank's liquidity, capital adequacy and structural foreign exchange risk. The Pension Executive Committe, through authority delegated by the Board through the Bank's Executive Committee is responsible for management of pension risk. The day to day responsibility for managing risk rests with CRO who oversees and manages the risk through a team of managers; Senior Credit Officer responsible for credit risk in Wholesale Bank, Head of Consumer Credit responsible for credit risk in Consumer Bank (including SME), Head of Special Assets Management responsible for remedial risk management, Head of Credit Risk Controls responsible for collateral management, security documentation, credit MIS and controls, Head of Market Risk responsible for liquidity risk and risks associated with price movements, arising from interest and exchange rate movements and Head of Operational Risk responsible for enterprise wide operations. The Bank has established policies, procedures, processes, and controls and have provided the Risk team adequate support by way of risk systems and tools for measuring and reporting risk for monitoring, controlling, reviewing and managing risk.

40.1 Credit risk Credit risk is the risk that a counter party will not settle its obligations in accordance with agreed terms. Credit exposures may arise from lending, trade finance, securities and derivative exposures. Credit exposures include both individual borrowers and groups of connected counterparties and portfolios in the banking and trading books. The Board of Directors has delegated down the authority to RC through the Banks Executive Committee to establish risk appetite and make recommendations to the Board for approval of risk appetite and policies for managing credit risk. The CEO and the Executive Committee in turn rely on CRO and the Risk Committee to determine these and recommend for their support and Board's approval. The RC is also delegated down by the BOD responsibility to delegate credit authorities to independent Risk Officers. Credit risk appetite is established through business strategy papers and underwriting standards by the business managers, which are approved by the Board once recommended, and supported by the Executive Committee. Specific procedures for managing credit risk within Wholesale and Consumer (including SME) are determined at the Senior Credit Officer and Head of Consumer Credit levels for their respective jurisdictions with specific policies and procedures being adapted to different risk environments and business goals. Credit analysis includes review of facility details, credit grade determination and financial spreading / ratio analysis. Portfolio review, Early Alerts and Stress Testing based on scenario analysis is a combined responsibility of Client Relationship and Risk and Finance function. Client relationship origination and credit approval roles are clearly segregated throughout Wholesale and Consumer Banks. 40.1.1 Wholesale Banking Within the Wholesale Banking business, a alpha numerical risk grading system is used for quantifying the risk associated with a counter-party. The grading is based on a probability of default measure, with customers analysed against a range of quantitative and qualitative measures. Expected Loss is used for further assessment of individual exposures and portfolio analysis. There is a clear segregation of duties with loan applications being prepared separately from the approval chain. 40.1.2 Consumer Banking For Consumer Banking, program based standard credit application forms are generally used, which are processed in central units for different products and market segments. Consumer Banking Analytics team has developed Bureau scores and uses Bureau data for portfolio monitoring and for underwriting new business. Medium enterprises relationship based business of Consumer Bank operates much like Wholesale banking with numerical risk grading system for quantifying counter party risk. As with Wholesale Banking, origination and approval roles are segregated.
40.1.3 Segment by class of business Advances - Gross (Rupees in '000) Chemical and pharmaceuticals Agri business Textile Communication Insurance Telecommunications and information technology Cement Sugar Automobile and transportation equipment Transportaion Financial Electronics and electrical appliances Production and transmission of energy Shoes and leather garments Individuals Others 9,527,776 5,169,099 30,800,450 609,555 47,677 6,119,964 10,680,307 3,793,644 1,759,277 5,720,684 2,313,816 1,710,639 21,343,544 1,681,196 19,419,000 38,956,863 159,653,491 Percent 5.97 3.24 19.29 0.38 0.03 2011 Deposits (Rupees in '000) 3,151,112 335,713 1,245,461 13,493,841 1,369,266 Percent 1.34 0.14 0.53 5.72 0.60 0.66 0.02 0.00 0.29 0.74 0.56 1.09 5.17 0.06 63.42 19.66 100.00 Contingencies and Commitments (Rupees Percent in '000) 3,783,790 263,593 2,657,237 1,876,968 1,489,322 1,402,723 74,392 1,919,255 1,243,216 35,976,421 3,376,497 12,454,821 264,079 2,094 14,195,244 80,979,652 4.67 0.33 3.28 2.32 1.84 1.73 0.09 2.37 1.54 44.43 4.17 15.38 0.33 0.00 17.52 100.00
3.83 1,552,479 6.70 44,349 2.38 1,552 1.10 692,307 3.58 1,746,703 1.45 1,325,970 1.07 2,568,419 13.37 12,188,344 1.05 147,011 12.16 149,630,030 24.40 46,382,027 100.00 235,874,584

2010 Advances - Gross (Rupees in '000) Chemical and pharmaceuticals Agri business Textile Communication Insurance Telecommunications and information technology Cement Sugar Automobile and transportation equipment Transportaion Financial Electronics and electrical appliances Production and transmission of energy Shoes and leather garments Individuals Others 12,581,392 3,754,374 31,537,475 965,316 51,893 6,057,752 8,646,315 3,004,413 2,911,272 2,327,602 647,492 2,790,378 30,945,948 1,245,722 22,208,754 34,037,174 163,713,272 Percent 7.69 2.29 19.26 0.59 0.03 Deposits (Rupees in '000) 3,118,225 139,164 984,202 8,408,199 1,203,223 Percent 1.42 0.06 0.45 3.82 0.55 2.32 0.01 0.01 0.42 1.20 0.67 1.29 3.21 0.05 61.02 23.50 100.00 Contingencies and Commitments (Rupees Percent in '000) 4,379,579 2,368,412 138,340 2,717,307 851,453 163,673 2,996,873 704,937 26,734,531 616,961 8,990,750 29,981 500 11,994,602 62,687,899 6.99 3.78 0.22 4.33 1.36 0.26 4.78 1.12 42.65 0.98 14.34 0.05 0.00 19.13 100.00
3.70 5,112,133 5.28 22,824 1.84 19,205 1.78 932,293 1.42 2,640,009 0.40 1,477,200 1.70 2,846,214 18.90 7,074,002 0.76 106,750 13.57 134,395,094 20.79 51,709,151 100.00 220,187,888
40.1.4
Details of non-performing advances and specific provisions by class of business segment
----------------------------- (Rupees in '000) -----------------------
Chemical and pharmaceuticals Agri business Textile Footwear and Leather garments Automobile and transportation equipment Financial Production and transmission of energy Individuals Others
40.1.5 Segment by sector Advances (Rupees in '000) Public / Government Private 9,171,405 150,482,086 159,653,491 %
259,345 132,448 110,055 109,936 16,799 16,799 16,799 9,300 7,726,811 7,544,373 6,702,963 6,595,554 15,564 5,997 16,393 9,457 402,721 383,064 458,088 402,277 49,326 24,663 276,416 213,232 375,968 190,452 6,060,285 4,422,462 4,749,996 3,441,120 11,295,290 8,960,079 10,151,128 7,566,023 26,102,557 21,703,117 22,581,390 18,324,119
2011 Deposits (Rupees in '000) % Contingencies and Commitments (Rupees % in '000) 8.78% 91.22% 100%
5.74% 1,913,256 94.26% 233,961,328 100% 235,874,584 2010
0.81% 7,107,266 99.19% 73,872,386 100% 80,979,652
Advances (Rupees in '000) Public / Government Private 26,829,322 136,883,950 163,713,272 %
Deposits (Rupees in '000) %
Contingencies and Commitments (Rupees % in '000) 2.31% 97.69% 100%
16.39% 3,432,915 83.61% 216,754,973 100% 220,187,888
1.56% 1,446,027 98.44% 61,241,872 100% 62,687,899

40.1.6 Details of non-performing advances and specific provisions by sector 2011 Classified Advances Specific Provision held 21,703,117 21,703,117 2010 Classified Advances Specific Provision held
----------------------------- (Rupees in '000) -----------------------
Public / Government Private 40.1.7 GEOGRAPHICAL SEGMENT ANALYSIS
26,102,557 26,102,557
22,581,390 18,324,119 22,581,390 18,324,119
2011
Profit before taxation Total assets employed Net Assets employed Contingencies and Commitments
----------------------------- (Rupees in '000) -----------------------
Pakistan
8,586,328 364,187,812 8,586,328 364,187,812
55,658,738 80,979,652 55,658,738 80,979,652
2010 Profit before taxation Pakistan 40.2 Market Risk The Bank recognises market risk as the exposures created by potential changes in market prices and rates. Market risk exposures arise primarily from interest rate and foreign exchange related contracts. The Bank has no significant exposure to equity and commodity price risk. Market risk is managed by the Head of Market Risk reporting directly to the CRO, who agrees policies and procedures and levels of risk appetite in terms of Value at Risk ("VaR"). Limits are then proposed by the business within the terms of agreed policy. These are agreed and delegated down by RC under delegated authority from the BOD, and are monitored by the Head of Market Risk as part of an independent risk management function. Policies cover both trading and non-trading books. In addition to market risk policies, as well as VaR and other market risk limits, independent stress testing of portfolios, factor sensitivity measures and derivatives are also employed as additional risk management tools to manage and hedge market risk exposures. Risk models are periodically back tested against actual results to ensure that pre-determined levels of accuracy are maintained. 40.3 Foreign Exchange Risk Assets Liabilities 2011 Off-balance sheet items Net foreign currency exposure 66,353,323 (46,267,425) (351,972) (5,297,216) (41,580) (1,054,791) (1,621,605) 11,718,734 Total assets employed Net Assets Contingencies employed and Commitments 52,100,069 62,687,899 52,100,069 62,687,899
----------------------------- (Rupees in '000) -----------------------
5,757,685 327,297,400 5,757,685 327,297,400
---------------------------------------- (Rupees in '000) ------------------------------------
Pakistan Rupee United States Dollar Great Britain Pound Euro Swiss Franc Japanese Yen Others
278,417,622 32,528,850 3,881,735 4,746,625 24,443 57,987 319,657,262
252,375,797 46,662,490 3,881,726 4,971,547 20,224 26,744 307,938,528 2010
40,311,498 (32,133,785) (351,981) (5,072,294) (45,799) (1,054,791) (1,652,848) -
Assets
Liabilities
Off-balance sheet items
Net foreign currency exposure 46,724,112 (30,447,856) (258,328) (2,911,925) (29,742) (2,371,145) 10,705,116
------------------------------------------- (Rupees in '000) -------------------------------------
Pakistan Rupee United States Dollar Great Britain Pound Euro Swiss Franc Others 40.3.1 40.3.2
237,709,635 37,812,440 4,075,795 5,512,661 19,474 370,502 285,500,507
212,563,732 52,163,503 4,038,016 5,988,864 19,331 21,945 274,795,391
21,578,209 (16,096,793) (296,107) (2,435,722) (29,885) (2,719,702) -
Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. The management sets limits on the level of exposure by currency in total, for both overnight and intra day positions which are monitored daily.

40.4 MISMATCH OF INTEREST RATE SENSITIVE ASSETS AND LIABILITIES
Effective yield / interest rate Total Upto one month Over one month to three months
2011 Exposed to yeid / interest rate risk Over two Over three Over one Over three Over six years to years to year to months to months to two years three years five years six months one year
Over ten years
On-balance sheet financial instruments Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Other assets Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loan - TFCs Other liabilities On-balance sheet gap Off-balance sheet financial instruments Forward Lending Interest Rate Swap Foreign Currency option Forward Foreign Exchange Contracts
-----------------------------------------------------------------------(Rupees in '000)------------------------------------------------------------------------
26,293,151 7,036,227 0.00% 3,204,253 150,000 2.01% 20,205,971 20,205,971 11.95% 104,040,114 15,731,975 6,369,343 13.10% 137,308,880 72,969,741 34,583,434 28,604,893 319,657,262 116,093,914 40,952,777 0.00% 4,576,789 10.00% 19,361,864 2,447,241 10,724,431 6.59% 235,874,584 118,876,861 8,004,444 13.95% 699,200 699,200 47,426,091 307,938,528 122,023,302 18,728,875 11,718,734 (5,929,388) 22,223,902
15,000,077 15,840,567 30,840,644 4,712,443 5,313,998 10,026,441 20,814,203
50,030,009 4,013,828 54,043,837 579,614 7,212,246 7,791,860 46,251,977
3,712,716 2,769,152 6,481,868 429,525 799,202 1,228,727 5,253,141
2,747,801 10,705,213 1,748,960 1,602,203 4,496,761 12,307,416 430,172 962,179 962,179 430,172 3,534,582 11,877,244
(296,457) 23,049 (273,408) 14,623 14,623 (288,031)
19,256,924 3,054,253 39,437 3,757,946 28,604,893 54,713,453
4,576,789 23,815 - 94,705,654 - 47,426,091 - 146,732,349 - (92,018,896)
55,080,732 15,822,498 51,619,665 122,522,895
2,318,516 12,750,502 24,637,959 21,671,887 26,956,475 34,422,389
753,480 4,895,546 5,649,026
9,136,635 414,273 9,550,908
20,193,942 20,193,942
5,092,630 5,092,630
8,255,314 8,255,314
12,402,211 12,402,211
Forward Borrowing Interest Rate Swap Foreign Currency option Forward Foreign Exchange Contracts Off-balance sheet gap Total yield / interest risk sensitivity gap Cumulative yield / interest risk sensitivity gap
47,080,731 15,822,498 36,686,830 99,590,059 22,932,836 34,651,570
200,000 2,318,516 12,750,502 17,314,106 16,263,828 19,632,622 29,214,330 7,323,853 5,208,059 1,394,465 27,431,961 28,826,426
434,333 753,480 3,086,411 4,274,224 1,374,802 22,189,005 51,015,431
7,427,147 22,485 7,449,632 2,101,276 48,353,253
12,093,601 12,093,601 8,100,341 13,353,482
4,009,407 19,918,052 4,009,407 19,918,052 1,083,223 (11,662,738) 4,617,805 214,506
2,998,191 2,998,191 9,404,020 9,115,989
(92,018,896)
99,368,684 112,722,166 117,339,971 117,554,477 126,670,466 126,670,466 2010 Exposed to yeid / interest rate risk Over two Over three Over one Over six years to years to year to months to two years three years five years one year
Effective yield / interest rate
Total
Upto one month
Over one month to three months
Over three months to six months
Over ten years
On-balance sheet financial instruments Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Other assets Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loan - TFCs Other liabilities On-balance sheet gap Off-balance sheet financial instruments Forward Lending Interest Rate Swap Foreign Currency option Forward Foreign Exchange Contracts Forward Borrowing Interest Rate Swap Foreign Currency option Forward Foreign Exchange Contracts Off-balance sheet gap Total yield / interest risk sensitivity gap Cumulative yield / interest risk sensitivity gap
-----------------------------------------------------------------------(Rupees in '000)------------------------------------------------------------------------
0.00%
24,087,885 921,931
6,827,499 -
5,544,722 23,548,044 29,092,766 5,642,552 4,736,807 10,379,359 18,713,407
4,286,025 1,575,697 1,852,339 7,714,061 1,748 9,365,030 199,200 9,565,978 (1,851,917)
1,592,708 1,662,740 3,255,448 203,800 806,079 449,200 1,459,079 1,796,369
1,745,756 746,716 2,492,472 3,000 854,799 250,000 1,107,799 1,384,673
443,242 822,179 1,265,421 119,803 1,180 120,983 1,144,438
2,164,700 2,527,142 4,691,842 1,025,071 1,025,071 3,666,771
17,260,386 921,931
4.50% 30,421,885 20,610,409 5,525,451 11.34% 72,294,275 37,661,852 21,504,134 13.99% 144,721,557 68,531,868 39,679,019 13,052,974 285,500,507 133,631,628 66,708,604 5,691,864 7.04% 15,914,343 792,459 6,487,180 6.62% 220,187,888 107,232,257 13,299,769 12.92% 1,135,900 237,500 31,865,396 274,795,391 108,262,216 19,786,949 10,705,116 25,369,412 46,921,655
61,464 1,761,835 3,589,675 - 13,052,974 1,761,835 34,886,430 1,761,835 5,691,864 1,638,730 83,891,967 31,865,396 123,087,957 (88,201,527)
70,714,086 4,400,360 52,631,879 127,746,325 54,307,772 4,400,360 36,575,885 95,284,017 32,462,308 43,167,424
1,423,839 2,908,886 27,255,871 16,602,308 28,679,710 19,511,194 7,143 2,019,275 1,423,839 2,908,886 21,731,711 9,716,783 23,162,693 14,644,944 5,517,017 4,866,250 30,886,429 51,787,905
30,000 67,635 8,113,004 8,210,639 905,993 67,635 5,115,215 6,088,843 2,121,796 20,835,203
1,274,037 660,696 1,934,733 1,493,081 12,176 1,505,257 429,476
17,310,484 17,310,484 8,685,892 8,685,892 8,624,592
22,040,652 13,815,128 22,040,652 13,815,128
16,243,785 16,243,785
12,135,883 18,812,647 10,247,858 12,135,883 18,812,647 10,247,858 9,904,769 (4,997,519) 5,995,927 11,289,442 (3,853,081) 9,662,698
(1,422,441) 10,420,961
1,761,835 (88,201,527)
82,674,334 103,509,537 102,087,096 112,508,057 123,797,499 119,944,418 129,607,116 131,368,951

40.5 Yield / Interest Rate Risk Yield risk is the risk of decline in earnings due to adverse movement of the yield curve. Interest rate risk is the risk that the value of financial instruments will fluctuate due to changes in the market interest rates. The Bank is exposed to various risks associated with the effects of fluctuations in the prevailing levels of market interest rates on its financial position and cash flows. The bank manages this risk by matching the re-pricing of assets and liabilities and off-balance sheet instruments. 40.6 Liquidity Risk The Bank defines liquidity risk as the risk that the Bank either does not have sufficient financial resources available to meet all its obligations and commitments as and when they fall due, or can access them only at an excessive cost. Liquidity risk is managed through the Asset and Liability Committee ("ALCO"). This committee, chaired by the CEO, is responsible for both statutory and prudential liquidity management. Liquidity risk is monitored through the internal liquidity risk management policy. A range of tools are used for the management of liquidity. These comprise commitment and wholesale borrowing guidelines, key balance sheet ratios, medium term funding requirements and day to day monitoring of future cash flows. In addition, liquidity contingency funding plans are reviewed periodically to ensure that alternative funding strategies are in place and can be implemented on a timely basis to minimise the liquidity risk that may arise due to unforeseen adverse changes in the market place. A substantial portion of the Banks assets are funded by customer deposits made up of current and savings accounts and other deposits. These customer deposits, which are widely diversified by type and maturity, represent a stable source of funds. The Bank also maintains significant levels of marketable securities either for compliance with local statutory requirements or as prudential investments of surplus funds. 40.7 Maturities of assets and liabilities - based on contractual maturity of assets and liabilities of the group
Assets Cash and balances with treasury bank Balances with other banks Lendings to financial institutions Investments Advances Other assets Operating fixed assets Intangible assets Deferred tax assets
26,293,151 3,204,253 20,205,971 104,040,114 137,308,880 37,565,179 6,437,023 26,413,335 2,719,906 364,187,812
26,293,151 3,204,253 20,205,971 15,000,084 58,646,541 867,210 25,227 2,298 124,244,735
6,369,343 25,712,202 17,879,305 50,452 4,598 50,015,900
13,675,077 11,931,411 7,601,366 75,678 6,897 33,290,429
50,030,009 7,018,180 9,177,415 152,018 13,795 66,391,417
3,712,716 11,299,085 873,854 385,152 27,590 16,298,397
2,747,801 6,584,690 14,703 303,918 28,354 9,679,466
12,030,213 8,043,275 745,726 605,428 55,182 2,719,906 24,199,730
474,871 6,638,296 405,600 1,513,569 137,952 9,170,288
1,435,200 3,325,581 26,136,669 30,897,450
Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loan - TFCs Other liabilities 4,576,789 19,361,864 235,874,584 699,200 48,016,637 308,529,074 55,658,738 4,576,789 2,471,056 213,438,755 199,200 18,219,423 238,905,223 (114,660,488) 10,724,431 8,007,044 7,814,991 26,546,466 23,469,434 4,712,443 5,403,371 1,387,895 11,503,709 21,786,720 579,614 7,263,965 250,000 9,683,161 17,776,740 48,614,677 429,525 799,270 250,000 4,970,065 6,448,860 9,849,537 962,179 3,807,404 4,769,583 4,909,883 430,172 1,557,127 1,987,299 22,212,431 14,623 576,571 591,194 8,579,094 30,897,450
Net assets Share capital Reserves Unappropriated profit Surplus / (deficit) on revaluation of assets Minority interest 38,715,850 3,879,491 8,940,420 3,323,174 799,803 556,658,738

Assets Cash and balances with treasury bank Balances with other banks Lendings to financial institutions Investments Advances Other assets Operating fixed assets Intangible assets Deferred tax assets Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loan - TFCs Other liabilities 5,691,864 15,914,343 220,187,888 1,135,900 32,267,336 275,197,331 52,100,069
24,087,885 921,931 30,421,885 72,294,275 144,721,557 18,132,579 6,606,225 26,681,948 3,429,115 327,297,400
24,087,885 921,931 20,610,409 37,769,030 59,655,659 609,410 27,480 5,926 143,687,730
5,525,451 21,504,134 17,015,834 8,069,077 54,877 10,493 52,179,866
4,219,722 13,975,008 3,630,894 82,316 15,740 21,923,680
4,286,025 1,575,697 7,232,137 2,994,516 164,632 31,480 16,284,487
1,592,708 13,264,283 310,490 338,327 62,958 15,568,766
1,745,756 12,846,040 1,115,221 329,266 62,958 16,099,241
1,768,242 10,885,154 500,590 660,615 125,916 3,429,115 17,369,632
2,118,986 8,085,607 902,381 1,625,105 264,670 12,996,749
1,761,835 3,323,607 26,101,807 31,187,249
5,691,864 2,431,189 190,939,367 237,500 2,470,122 201,770,042 (58,082,312)
6,487,180 13,314,247 7,814,991 27,616,418 24,563,448
5,642,552 4,821,772 1,387,895 11,852,219 10,071,461
1,748 9,450,379 199,200 9,683,161 19,334,488 (3,050,001)
203,800 806,079 449,200 4,970,065 6,429,144 9,139,622
3,000 854,864 250,000 3,807,404 4,915,268 11,183,973
119,803 1,180 1,557,127 1,678,110 15,691,522
1,025,071 576,571 1,601,642 11,395,107
31,187,249
Net assets Share capital Reserves Unappropriated profit Surplus / (deficit) on revaluation of assets Minority interest 38,715,850 2,785,229 6,838,790 2,972,973 787,227 52,100,069
40.8
Maturities of assets and liabilities - based on expected maturity of assets and liabilities of the bank The expected maturity analysis is prepared in accordance with the guidelines issued by SBP through BSD Circular letter No. 3 of 2011 where non-contractual assets and liabilities are stated as per their expected maturities.
Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Other assets Operating fixed assets Intangible assets Deferred tax assets Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities 4,576,789 19,361,864 235,874,584 699,200 48,016,637 308,529,074 55,658,738
26,293,151 3,204,253 20,205,971 104,040,114 137,308,880 37,565,179 6,437,023 26,413,335 2,719,906 364,187,812
26,293,151 3,204,253 20,205,971 15,000,084 23,355,382 867,210 25,227 2,298 88,953,576
6,369,343 27,266,307 17,879,305 50,452 4,598 51,570,005
13,675,077 14,262,569 7,601,366 75,678 6,897 35,621,587
50,030,009 11,680,496 9,177,415 152,018 13,795 71,053,733
3,712,716 38,042,665 873,854 385,152 27,590 43,041,977
2,747,801 6,584,690 14,703 303,918 28,354 9,679,466
12,030,213 8,043,275 745,726 605,428 55,182 2,719,906 24,199,730
474,871 6,638,296 405,600 1,513,569 137,952 9,170,288
1,435,200 3,325,581 26,136,669 30,897,450
4,576,789 2,471,056 25,538,421 199,200 1,996,949 34,782,415 54,171,161
10,724,431 13,902,224 16,274,049 40,900,704 10,669,301
4,712,443 14,246,141 953,256 19,911,840 15,709,747
579,614 24,949,506 250,000 22,303,002 48,082,122 22,971,611
429,525 156,276,113 250,000 3,440,775 160,396,413 (117,354,436)
962,179 1,896,155 2,858,334 6,821,132
430,172 918,279 1,348,451 22,851,279
14,623 234,172 248,795 8,921,493
30,897,450
Net assets Share capital Reserves Unappropriated profit Surplus on revaluation of assets - net Minority interest 38,715,850 3,879,491 8,940,420 799,803 3,323,174 55,658,738

Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Other assets Operating fixed assets Intangible assets Deferred tax assets Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities 5,691,864 15,914,343 220,187,888 1,135,900 32,267,336 275,197,331 52,100,069
24,087,885 921,931 30,421,885 72,294,275 144,721,557 18,132,579 6,606,225 26,681,948 3,429,115 327,297,400
24,087,885 921,931 20,610,409 37,769,030 17,377,353 609,410 27,480 5,926 101,409,424
5,525,451 21,504,134 19,006,242 8,069,077 54,877 10,493 54,170,274
4,219,722 16,960,621 3,630,894 82,316 15,740 24,909,293
4,286,025 1,575,697 13,203,363 2,994,516 164,632 31,480 22,255,713
1,592,708 44,595,342 310,490 338,327 62,958 46,899,825
1,745,756 12,846,040 1,115,221 329,266 62,958 16,099,241
1,768,242 10,885,154 500,590 660,615 125,916 3,429,115 17,369,632
2,118,986 8,085,607 902,381 1,625,105 264,670 12,996,749
1,761,835 3,323,607 26,101,807 31,187,249
5,691,864 2,431,189 28,510,057 237,500 2,470,122 39,340,732 62,068,692
6,487,180 20,304,207 7,814,991 34,606,378 19,563,896
5,642,552 15,306,713 1,387,895 22,337,160 2,572,133
1,748 30,420,259 199,200 9,683,161 40,304,368 (18,048,655)
203,800 124,790,608 449,200 4,970,065 130,413,673 (83,513,848)
3,000 854,864 250,000 3,807,404 4,915,268 11,183,973
119,803 1,180 1,557,127 1,678,110 15,691,522
1,025,071 576,571 1,601,642 11,395,107
31,187,249
Net assets Share capital Reserves Unappropriated profit Deficit on revaluation of assets - net Minority interest 38,715,850 2,785,229 6,838,790 2,972,973 787,227 52,100,069
40.9
Operational Risk Operational risk is the risk of a direct or indirect loss being incurred due to an event or action arising from the failure of technology, processes, infrastructure, personnel and other risks having an operational risk impact. The Country Operational Risk Committee ("CORC") has been established to ensure that an appropriate risk management framework is in place at a grass root level, and to report, monitor and manage operational, social, ethical and environmental risk. The CORC is chaired by the CEO, and CRO is an active member of this forum. All business units within the Bank monitor their operational risks using set standards and indicators. Significant issues and exceptions are reported to CORC and are also picked up by the independent Risk function for discussion at the Risk Committee chaired by the CRO. Disaster recovery procedures, business contingency planning, self-compliance assurance and internal audits also form an integral part of the operational risk management process.

41. ISLAMIC BANKING BUSINESS The Bank is operating with 15 Islamic Banking branches as at the end of 2011 (2010: 15).
41.1
Balance Sheet Assets Cash in hand Balances with and due from Financial Institutions Investments Financing and receivables - Murabaha - Musharaka - Diminishing Musharaka - Others
Note
2011 2010 -------- (Rupees in '000) ---------
124,796 1,744,661 5,923,668 3,911,912 64,563 10,238,647 119,962 14,335,084 216,255 6,360,912 28,705,376
113,723 557,362 3,624,892 1,758,147 7,552,373 28,196 9,338,716 211,224 582,735 14,428,652
Operating fixed assets Other assets Liabilities Deposits and other accounts - Current accounts - Savings accounts - Term deposits - Others
41.3
8,846,563 4,182,275 3,420,838 83,844 16,533,520 1,922,500 7,327,534 25,783,554 2,921,822
5,381,984 2,222,316 3,440,267 417,692 11,462,259 805,000 444,835 12,712,094 1,716,558
Due to financial institutions Other liabilities
41.3
Net Assets Represented by: Islamic Banking Fund Reserves Deficit on revaluation of assets - net
200,000 2,723,154 (1,332) 2,921,822 21
200,000 1,516,666 (108) 1,716,558
CONTINGENCIES AND COMMITMENTS Charity fund Opening balance Additions during the year Payments / utilization during the year Closing balance
4,377 (4,377) -
4,141 (4,141) -

Note 41.2 Profit and Loss Profit / return earned on financings, investments and placements Return on deposits and others dues expensed Net spread earned Provision against non performing financing Net spread after provisions Other income Fees, commission and brokerage income Other income Total other income Other expenses Administrative expenses Profit before taxation 41.3 41.4 42. This includes acceptances of Rs. 5,456 million (2010: Rs. 309 million). This includes Bank's Shariah Advisor cost Rs. 520 thousand for 2011. DATE OF AUTHORIZATION
2011 2010 -------- (Rupees in '000) --------2,355,604 (627,700) 1,727,904 (185,514) 1,542,390 1,471,808 (453,105) 1,018,703 (196,064) 822,639
461,960 7 461,967 2,004,357 41.4 (797,869) 1,206,488
253,618 2 253,620 1,076,259 (361,775) 714,484
These financial statements were authorized for issue in the Board of Directors meeting held on 05 March 2012.

Annexure-1
Statement in respect of written-off loans or any other financial relief of five hundred thousand rupees or above as required under sub-section (3) of section 33A of the Banking Companies Ordinance, 1962 during the year ended 31 December, 2011.
Outstanding Libilities at Beginning of Year Interest/ Principal Others Total Mark up Amount Written off / Concession Interest/ Total Others Mark up Balance
Sr. No.
Name
Address
Principal
SH. MOHAMMAD SHAFIQUE
22 SHAMI ROAD SHAMI BLOCK MUSLIM TOWN 1 FSD
33100-0137938-5
SHEIKH HAJI ABDUL GHAFOOR
1,599,158
683,511
2,282,669
559,158
1,355,273
1,914,430
FAYYAZ AHMAD KHAN
352 3 DHA LHR CANTT
273-44-188399
GHULAM HUSSAIN MALIK HASSAN AHMED
5,035,578
152,978
5,188,556
2,836,293
882,917
3,719,210
MALIK MOHAMMAD AYUB H NO 231 WESTWOOD COLONYTHOKAR NIAZ BAIGRAIWIND RO 8/9 ALI PARKTHOKAR NIAZ BAIGNEAR I.M.T STOP MULTAN
35202-2680499-9
10,698,793
3,754,339
14,453,132
6,365,686
2,504,705
8,870,391
NASIRA EJAZ
HOUSE NO 150-B MUSLIM TOWN SARGODHA RD FSD C-B 670LANE NO 5PESHAWAR ROAD RAWALPINDI CANTT,NEAR SHOP NO 12MAJEED PLAZABANK ROAD SADDAR RAWALPINDI
33100-6193226-5
MUHAMMAD EJAZ ELLAHI ZABAR DAST KHAN
2,312,421
964,248
3,276,669
1,012,421
684,797
1,697,218
ABDUL RAZZAK KHAN
37405-1532829-3
1,632,777
435,701
2,068,478
162,677
520,240
682,918
SH NISAR AHMED
DOST STREET SIMANDRI ROAD FAISALABAD 94/1 6TH STREET PHASE-VI D.H.A KARACHI
33100-0917755-3
MUHAMMAD AKBAR MUHAMMAD ZAHOOR ALAM
1,998,080
399,617
2,397,696
195,874
579,421
775,294
S PERVEZ ALAM
42301-8882602-7
4,999,525
1,497,528
6,497,053
1,499,525
2,078,295
3,577,820
MAQSOOD AHMED
444-B GULISTAN COLONYNO 2 MILLAT ROADFAISALABAD 12 JAMIA CLOTH MARKETGALE KATCHERY BAZAR FAISALABAD
33100-1625996-3
HAJI ABDUL AZIZ
1,207,473
363,023
1,570,496
96,063
413,501
509,564
KHAWAR MAQSOOD
11-E SHAH ALAM MARKET LAHORE
35202-2873459-7
MAQSOOD ALAM MUHAMMAD HUSSAIN SHAIKH
7,399,618
1,954,814
9,354,432
2,599,618
1,954,814
4,554,432
10
MUNIR HUSSAIN SHAIKH
127 ABU BAKAR NEW GARDEN TOWN LAHORE
35202-6338470-1
4,185,633
59,583
4,245,216
596,398
596,398
11
IJAZ UL QAMAR
100-B AZIZ SHAHEED ROAD SIALKOT CANTT SIALKOT
34603-1115981-5
CHAUDHARY MUHAMMAD SHAFI
1,446,548
976,834
2,423,382
246,548
1,001,405
1,247,953
12
AMIR MAJEED
101 WEST WIND ESTATE FL-11 CLIFTON BLOCK-2 KEHKASHAN
517-65-042657
ABDUL MAJEED CLODY
9,587,136
4,155,204
13,742,340
3,355,086
4,155,204
7,510,290
13
M AFZAL
CHAK NO.204,R.BDAKHANA KHAS FAISALABAD CHAK NO.204-R.BMAIN MADINA TOWN ROAD FAISALABAD
33100-3622072-3
CHAUDHRY FAQIR MUHAMMAD
9,596,388
4,001,311
13,597,700
6,563,378
88,898
6,652,276
14
HAKIM MOHAMMAD IQBAL 152-B EME HOUSING SOCIETY MULTAN ROAD LAHORE
36402-3443792-5
M RUSTAM BHATTI
5,652,000
2,150,585
7,802,585
1,607,340
2,300,432
3,907,772
15
QAMER ABBAS ZAIDI
32 A JHAFARIA COLONY LHR
272-60-198224
QAMAR ABBAS ZAIDI SYED ALAM SHAH BASHIR AHMAD SHEIKH
1,267,927
295,271
1,563,198
316,207
549,551
865,758
16
SYED MUKARAM HUSSAIN HOSUE NO 12 GALI 21 NABI PURA LAL PUL MUGHAL PURA MASOOD AHMED 5 SARFRAZ CLOTH MARKET GOLE KAPRA GHNTA GHAR FAISALABAD
35201-6543905-5
2,649,090
1,146,696
3,795,787
661,790
1,322,335
1,984,125
17
33100-8759568-1
2,460,392
616,109
3,076,502
442,392
711,874
1,154,266
18
M ASIF
232-U OPPOSITR LUMS D.H.A. CANTT LAHORE
35201-9997991-7
MOHAMMED RAFIQ
3,036,328
1,365,934
4,402,262
1,036,328
1,567,247
2,603,574

Annexure-1
Sr. No.
Name
Address
Principal
19
M UL HASSAN KHAN
H NO B 4 ST 40 F 7/1 ISD
101-61-697434
MUHAMMAD YUSUF KHAN MUSHTAQ AHMED BHATTI
10,198,639
4,284,557
14,483,196
4,078,639
4,284,557
8,363,196
20
KALSOOM AKHTAR
H NO P-46 CANNAL PRK EAST CANNAL ROAD NEAR HUMDRD UNIVERSTY FAISALABAD 7 C DHA LAHORE
33100-0524348-6
4,420,029
1,106,882
5,526,911
3,169,159
57,709
3,226,868
21
IMTIAZ AHMED MALIK
275-58-325564
MALIK MUHAMMAD AKRAM FAZAL HUSSAIN
299,983
463,207
763,189
299,983
477,143
777,126
22
AHMED ALI
H NO B-334 P GULISTAN COLONYNO 2 FAISLABAD NEW CIVIL LINE ROAD OPP H NO 20 FAISLABAD
33100-4819700-1
1,990,014
492,685
2,482,700
497,659
689,931
1,187,590
23
M UMAR FAROOQ
H NO F-704F-BLOCKNEAR MASHAL SCHOOLSATTELITE TOWNR P/1573DEGREE COLLEGE ROADOPP.MALIK MEMORIAL HOSPIT P.O BOX 2201 OPPSOITE: GIRLS HIGH SCHOOL SIALKOT
37405-8199577-7
ABDUL GHAFOOR KHAN
5,195,879
1,648,434
6,844,313
778,889
1,897,134
2,676,023
24
ZEESHAN AKRAM KHAN
34603-2808719-9
MUHAMMAD AKRAM KHAN
2,116,042
636,548
2,752,590
1,472,438
25,011
1,497,449
25
MUSHTAQ AHMED JAVAID 174 A JALIL TOWN GJW
34101-2592117-7
MAIN LAHAB DIN (LATE) MUHAMMAD SHAFI MUHAMMAD USMAN
1,626,037
168,495
1,794,532
655,900
655,900
26
IMTIAZ HUSSAIN
FLAT NO 4 NAJEEB PLAZA 1-9 MARKAZ ISL
61101-1886729-7
1,744,458
733,363
2,477,821
444,458
733,363
1,177,821
27
M HUSSAIN USMAN
KAMANI CONSULTANT & MANAGMENT 205 A.H. CENTRE SHAHRAH-E-LIAQUAT
42301-8481331-5
1,388,691
334,947
1,723,639
263,841
462,951
726,792
28
MOHAMMAD RAMZAN SABQI
FLAT NO 203 ARIF ARCADE PLOT NO 48 BLOCK 3 BAHADUR
42201-2808512-5
WALI MOHAMMAD SABQI
4,327,045
1,353,477
5,680,521
2,618,396
55,470
2,673,866
29
ZAMIN SHAH
H NO 4 ST 955 CAB LINES RWP
37405-0566805-5
MISKEEN SHAH
2,994,509
819,093
3,813,602
599,009
1,005,548
1,604,557
30
TAHIR USMAN
B-209,BLOCK 6 GULSHAN E IQBALNEAR DISCO BAKERY KARA SHOP NO 5 BUILDING NO 3-C10TH STREET H NO E 119 BLOCK E SATTELITE TOWN NEAR HOLY FAMILY HOSPITAL RAWALPINDI
42201-6720877-3
SHAHZAD BI
9,795,624
4,084,640
13,880,264
3,428,061
4,251,032
7,679,092
31
M MAZHAR AWAN
36201-4913274-3
MALIK JAHANDAD KHAN MUHAMMAD TAHIR
867,878
603,098
1,470,976
237,138
610,638
847,776
32
M SHAKEEL
HOUSE NO C/164 BLOCK 6 GULISTAN E MUSTAFA FEDERAL B AREA KARACHI
42000-0564185-1
1,489,959
632,133
2,122,092
372,490
632,133
1,004,623
33
MOHAMMAD AKBAR KHAN M,A,K TRADERS SUIT#6,7 3RD FLOOR RANA CHEMBER LAKE LASANI FALOODA LAHORE RIAZ HUSSAIN KHAN HOUSE NO. C - 256 , BLOCK - 10, FEDERAL ' B ' AREA , PH#6349049 197 E MOHAMMADI PARK NEAR SHAMI CHOWK GHULAM MOHAM
35202-7271412-1
M ARSHAD KHAN
2,692,229
1,114,191
3,806,420
942,248
1,650,793
2,593,041
34
42101-2628509-5
AHMED HUSSAIN KHAN MANZOOR AHMAD
2,476,596
1,070,442
3,547,038
742,945
1,070,442
1,813,387
35
M YASIN
33100-6853002-1
2,149,412
859,814
3,009,225
1,361,356
1,361,356
36
SALMAN MALIK
4/1, FAZLIA COLONY, FEROZ PUR ROAD, LAHORE
35202-5904340-7
MUHAMMAD ASHIQ MALIK
4,262,393
60,676
4,323,069
700,000
172,681
872,681
37
QASIM ALI SHAH
B-52 BLOCK 13 FEDERAL B AREA KARACHI
42000-6843871-3
BUNYAD ALI SHAH SYED ZAFAR HUSSAIN RIZVI SUFI FAIZ AHMED
3,010,015
753,741
3,763,756
1,010,015
1,294,299
2,304,314
38
SYED MUKHTAR HUSSAIN HOUSE NO 71-A, SOUTH CIRCULAR AVENUE RIZVI PHASE 2, D.H.A KARACHI NASEER AHMED H NO.135-136JAMIA MUSJID CHOWKKARAM TOWN FAISALABAD ST NO.4 ABDULLAH CENTRE KARKHANA BAZAR FAISALABAD
42301-9114784-5
14,809,090
5,670,323
20,479,413
4,809,014
5,670,323
10,479,338
39
33100-8782913-1
2,146,367
429,228
2,575,594
555,643
555,643

Annexure-1
Sr. No.
Name
Address
Principal
40
EJAZ MUSTAFA
5 A RACE COURSE ROAD RAIL LINE FSD
33100-8319290-7
SHEIKH GHULAM MUSTAFA MUHAMMAD YAQOOB MOHAMMAD FAZIL SYED SARFARAZ HASAN
9,543,752
1,600,213
11,143,965
860,382
2,628,380
3,488,762
41
MOHAMMAD AYUB
HOUSE NO 65 BLOCK 14 SECTOR B 1 TOWNSHIP LHR H NO GF 3 BUILDING NO 36 SEAVIEW TOWN SHIP PHASE 5 B 152 BLOCK L NORTH NAZIMABAD KHI
35202-2797783-5
1,683,050
687,564
2,370,614
939,979
939,979
42
M ANWAR SAJID
42301-0113488-1
5,600,000
976,125
6,576,125
1,960,000
976,125
2,936,125
43
SEEMA YASMEEN
42101-8853264-6
5,599,920
2,335,090
7,935,010
1,599,920
2,430,212
4,030,132
44
MOHAMMAD AZHAR
H NO 76 ST NO 8 PHASE 1 PAKISTAN TOWN ISL LASANI GARDEN STREET MANZOOR VILLA BOSAN ROAD MULTAN NEAR BANK AL FALAH ABDALI ROAD MULTAN 144 B MODEL TOWN GUJRANWALA BUKHARI ST JAHANGEER ABAD DAK KHANA KHAS TEH DISTT
61101-5768787-9
GHULAM MUHAMMAD MANZOOR AHMED
3,498,852
1,458,385
4,957,237
748,852
1,517,818
2,266,670
45
ASIF MANZOOR
36302-3622052-1
2,199,783
934,095
3,133,878
549,283
934,095
1,483,378
46 47
ASIF JAVED SYED SHAHID HUSSAIN SHAH
34101-7602766-3 36302-0201449-5
ABDUL HAMEED SYED TAJ MUHAMMAD SHAH MOHAMMAD SIDDIQUE
1,996,514 1,198,665
835,538 519,531
2,832,052 1,718,196
496,514 358,665
835,538 519,531
1,332,052 878,196
48
MUHAMMAD ASLAM ANJUM
CHAUDHRY FARM SERVICES,NAZIR COLONY BUDHLA ROAD TEHSIL MULTAN
36202-0412676-9
1,499,999
426,911
1,926,911
369,999
511,904
881,904
49
RIASAT ALI
H NO.P-12 MAIN ROAD SARFRAZ COLONYNEAR ZEESHAN DYI MUHAMMAD ALI STREETNEAR NAVEED SIZING SAMANABAD ROAD
33100-1868667-1
NOOR HASSAN
3,394,450
1,386,755
4,781,205
1,184,450
1,386,755
2,571,205
50
M AZEEM
H # 7/33 FAZLIA COLONY FEROZEPUR ROAD LAHORE
35202-1129219-7
ABDUL RAHIM
6,799,561
1,814,192
8,613,753
5,005,898
182,572
5,188,470
51
S ASHRAF NASEEM
FLAT NO 502 A 5TH FLOOR ROYAL APPARTMENT KDA 1 SB
42201-0662704-4
SYED SEEM AHMED
5,299,772
2,166,372
7,466,145
4,085,602
159,420
4,245,021
52
FAKHAR ALAM
FAKHAR SPRAY CENTRE, OPPOSIT SABZI MANDI, RAILWAY ROAD, SHUJABAD
36304-2663317-7
MUHAMMAD HAROON
747,926
202,497
950,423
247,926
280,691
528,618
53
SHEIKH KHALID PERVAIZ
15 B NEW MUSLIM TOWN LHR
35202-6908260-3
SHEIKH MOHAMMAD ASHIQ
8,385,859
3,546,493
11,932,352
2,485,859
3,546,493
6,032,352
54
MIRZA AHMED TARIQ BAIG QAUID-E-AZAM ROAD KEHROR PACCA
36202-0468500-5
MIRZA ANWAR BAIG PIR BADSHAH GILANI
4,977,942
1,906,691
6,884,633
1,627,942
1,906,691
3,534,633
55
TAUSEEF GILANI
SUITE:2 MEZZANINE FLR SETHI PLAZA BLKA JINNAH AVENUE BLUE AREA ISLAMABAD
61101-9620730-7
5,987,197
1,699,354
7,686,551
1,587,197
2,091,351
3,678,548
56
SHAFQAT MAHMOOD
27/BHATTA LUDDAN ROAD VEHARI 067-3362913 T M TEXTILE INDUSTRIES CHAK# 204 RB NEAR OPP PTCL EXCHANGE FAISALABAD HOUSE#487/A, THANA CITY ROAD THATHI SHARQI CHINIOT, FAISALABAD H NO.208 ST NO.6 NEARBADSHAH GENERAL STOREAL MASOO P-842 MAIN BAZAR NEAR AMANULLAH MASJIDRAJA GHULAM H NO 214 KAUSAR BLOCK AWAN TOWN MULTAN ROAD LAHORE
36603-1416675-5
KHURSHEED AHMED CH FAQEER MUHAMMAD GAZANFAR ALI SHAH MUHAMMAD YOUS
1,549,395
551,994
2,101,390
1,016,790
8,554
1,025,343
57
TALAT MEHMOOD
33100-4223994-7
4,499,649
1,688,233
6,187,883
2,881,935
40,342
2,922,277
58
ZAFAR ABBAS SHEIKH
33201-4954100-9
2,671,941
1,029,093
3,701,034
801,541
1,029,093
1,830,634
59
ATTA ULLA
33100-5519829-1
2,424,591
810,406
3,234,997
363,641
912,726
1,276,367
60
M GHAFFAR KHAN
35202-2254456-2
MUHAMMAD HANIF KHAN
505,616
505,616
505,616
505,616
61
IRSHAD HUSSAIN KHAN
SUBHANALLAH TRDERS QUAID-E-AZAM ROAD KEHROR PACCA DISTT LODAHRAN
36202-0924563-9
MEHMOOD KHAN
1,964,903
642,449
2,607,352
686,903
729,658
1,416,561

Annexure-1
Sr. No.
62
Name
ASHIQ ALI KHAN
Address

42301-0939649-1

ALI MUHAMMAD HALANI ZIR AHMED
Principal
FLAT NO A 904 9TH FLOOR BELLE VIEW APPARTMENTS CLI 4-B GHALLA MANDI VEHARI 067-3364371
6,998,284
2,860,661
9,858,945
2,398,284
2,979,536
5,377,820
63
MUHMMAD ASLAM
36603-1464238-5
1,040,914
745,498
1,786,412
312,234
745,498
1,057,732
64
NAEEM MEHBOOB
2-DISTRIBUTOR PLAZA MAHELAL ST NILA GUMBAD LAHORE
35201-1508356-7
MAHBOOB ELAHI
3,392,959
54,849
3,447,808
319,279
496,389
815,668
65
MUHAMMAD SHABBIR
CHAK NO 223 R.B ASA SINGH WALA D.TYPE COLONY
33100-4244480-7
HAJI ATA MUHAMMAD
2,267,328
338,975
2,606,303
555,508
555,508
66
MUHAMMAD IDRESS
P-263 ST 2 SARGODHA ROAD MUSTAFABAD FSD
33100-2484358-5
ABDUL LATIF
9,599,897
3,481,203
13,081,099
3,100,941
5,156,582
8,257,523
67
CH.MAQSOOD QADIR
5-6 KHYBER BLOCK FORTRESS STADIUM CANTT LAHORE
35201-8440455-7
CH MUSHTAQ AHMED
3,496,806
1,088,865
4,585,670
870,696
1,365,756
2,236,451
68
MIAN NASEER AHMED
GULZAR CENTRE GENERAL BUS STAND MULTAN
36302-0446997-5
HAJI MUHAMMAD AMIN
2,784,507
1,086,187
3,870,694
974,577
1,086,187
2,060,764
69
MUHAMMAD YAQOOB MALIK
HOUSE # 314 ,STREET # 65 ,A-8/3 ,ISLAMABAD .
61101-6198898-5
MALIK MUHAMMAD HUSSAIN
7,899,168
4,263,790
12,162,958
2,399,168
4,263,790
6,662,958
70
QAISER MEHMOOD
FINE TECH SR # 04, MOON ARCADE,OPP STAR GATE, SHAHRAH-E-FAISAL KARACHI.
42401-1993027-3
ABDUL GHANI
2,193,147
212,807
2,405,954
193,147
449,273
642,420
71
MUHAMMAD NAEEM
403-F SHAH RUKN-E-ALAM COLONY
36302-7188834-9
MUHAMMAD YOUNIS
3,038,495
776,190
3,814,685
758,407
1,167,864
1,926,271
72
SHAHID AKHTAR
H NO 17 LANE NO 6 LALA ZAR 1M RWP
37405-3928486-5
SHAHID AKHTER
1,850,912
783,818
2,634,730
200,912
783,818
984,730
73
MUKHTAR AHMED
105- GROUND FLOOR PAKISTN CLOTH MARKET LAHORE
35202-9914881-1
MUHAMMAD ISHAQUE (LATE)
9,799,836
4,156,351
13,956,186
3,299,836
4,281,198
7,581,033
74
SAEEDA MUSHTAQA PIRACHA
C 78 BLOCK 6 GULSHAN E IQBAL KARACHI
42201-4808759-6
MUSHTAQ PIRACHA
3,042,307
1,500,792
4,543,099
1,702,501
1,702,501
75
NASEER AHMED
H NO .5 MUGHALST NO.1 BOHAR SHAH ROAD CANTT NEAR JA SHOP NO.107-LG SADIQ TRADE CENTRE GULBURG-III LAHORE
35201-1512422-1
ALI AHMAD
999,234
409,701
1,408,935
249,234
409,701
658,935
76
MEHMOOD AHMED
613-C NEELAM BLOCK ALLAMA IQBAL TOWN LAHORE 190-FMULTAN ROAD NEAR CHWOKYATEEM KHANA LAHORE
35202-9153200-7
ALLAH RAKHA
1,823,730
86,906
1,910,636
182,330
361,685
544,015
77
MUHAMMAD IQBAL
PAKISTAN PESTICIDE QUAID-E-AZAM ROAD KEHROR PACCA 103-5/B-1 AL KARIM CHOWK TOWN SHIP LAHORE
36202-0965999-7
MUHAMMAD ZULFIQAR MUHAMMAD ALI KHOKHAR
3,074,934
905,025
3,979,959
1,174,839
661,787
1,836,626
78
ABDUL SATTAR
35202-8656843-9
1,304,084
347,880
1,651,964
325,890
496,807
822,697
79
MUHAMMAD IJAZ
NAZEER CORPORATION QUAID-E-AZAM ROAD KEHROR PACCA DISTT. LODHRAN
36202-0917529-7
MUHAMMAD WAZ
1,575,048
578,094
2,153,141
455,048
577,894
1,032,941
80
IMRAN RIAZ
AL-SHAFA HOSPITAL SATELLITE TOWN GUJRANWALA
34101-0525405-3
RIAZ AHMED SHEIKH
9,967,536
4,320,275
14,287,811
3,467,532
4,320,275
7,787,807
81
MALIK AKHTAR HAMEED
5 ILYAS STREET MUSLIM TOWN LAHORE
35202-1320077-7
MALIK HAMEED UD DIN
7,099,363
2,901,931
10,001,294
3,099,362
2,312,277
5,411,639
82
SAEED AKHTAR
90-B IQBAL ROAD VEHARI OFF/0673366373 RES/0673362047 HOUSE NO 25 STREET NO 4 CHAKLALA SCHEME III
36603-1461246-9
ABDUL HAMEED KHAN SARDAR SEER
6,356,702
3,074,724
9,431,426
2,856,702
3,185,979
6,042,681
83
SARDAR MOHAMMAD ZAHEER
37405-9498991-7
10,798,511
4,401,767
15,200,278
2,798,511
4,401,767
7,200,278

Annexure-1
Sr. No.
Name
Address
Principal
84
TARIQ MEHMOOD NAWAZ HOUSE NO.I89, STREET NO.08, MOHALLAH ALTAF GUNJ, JHAN
33102-1763840-5
MUHAMMAD WAZ
1,092,796
346,698
1,439,495
163,866
414,875
578,742
85
MUHAMMAD NAVEED YOUNAS
68-AL HAMD PARK ALLAMA IQBAL TOWNLAHORE SHOP NO.7 ASAD PLAZA DUBAI CHOWKMOON MKT ALLAMA IQBAL H.NO.66/3 N/B MOSQUE SAYYEDA FATIMA ZEHRA ANSAN COLONY MULTAN
35404-8542303-9
MUHAMMAD YOUS
7,987,353
1,733,145
9,720,497
1,596,921
2,366,412
3,963,332
86
HASSAN TEX
36302-9625490-7
ABDUL AZIZ
4,646,667
520,070
5,166,737
1,066,667
520,070
1,586,737
87
NAVEED AHMED
HOUSE NO. P - 1029/C 1-A NEAR GOVT. DEGREE COLLEGE ASGHAR MALL ROAD RAWALPINDI. 4419911/03005559900/4452541
37405-1218023-7
ABDUL MAJEED
3,786,099
1,520,152
5,306,251
586,099
1,631,908
2,218,007
88
AGHA FARRUKH RAHEEM 22 GROUND FLOOR RAJA CENTRE MAIN BOULEVARD GULBERG II LAHORE
35202-6104949-5
AGHA RAHIM UDDIN AHMED
2,694,332
1,057,092
3,751,424
942,332
1,144,197
2,086,529
89
MEHMOOD-UL-HASSAN
137 CHANDNI CHOWK AZAM CLOTH MARKET LAHORE
35202-2930749-3
GULZAR HUSSAIN
7,959,682
2,130,436
10,090,118
1,591,473
2,437,033
4,028,506
90
SHEIKH ABDUL QUDDUS
H. NO. 57, STREET # 39, SECTOR F-10/4, ISLAMABAD. 051-2110581/0300-8550991
61101-2111008-1
SHEIKH ABDUL RAUF
19,787,881
7,444,710
27,232,591
3,650,814
3,650,814
91
ZULFIQAR BUTT
QUAID GIRLS COLLEGE MOHALLAH ISLAMABAD NAI ABADI SIALKOT
34603-2721874-9
GHULAM MUSTAFA BUTT
4,506,305
214,781
4,721,086
450,630
819,678
1,270,308
92
NAYA SAVERA
NAYA SAVERA CHUNGI NO 14-A, BAHAWAL PUR ROAD MULTAN
36302-0271444-5
SULTAN AHMED
1,116,183
423,458
1,539,641
728,818
29,244
758,062
93
M.ISHFAQ JAMIL
MIAN COMMUNICATION IST FLOOR NOKIA TOWER USMAN MARKET HALL ROAD LAHORE. HALL ROAD, LAHORE
35201-7706290-9
MIAN MUHAMMAD JAMIL
14,231,419
5,931,559
20,162,978
4,731,419
6,137,280
10,868,698
94
KHALID MAHMOOD
HNO 119-B KH-E- SHEHAR PHASE VI PAKISTAN DEFENCE OFFICER COOPERATIVE HOUSING SOCIETY KARACHI.
42301-0856668-9
MUHAMMAD MUBEEN SIDDIQUI
10,270,000
4,861,079
15,131,079
3,570,000
4,912,029
8,482,029
95
MUHAMMAD NAZEER
M/S AMMAR ENTERPRISES B-56 BLOCK 10A 01 GULSHAN-E- IQBAL KARACHI
42101-3016323-1
HIDAYAT ULLAH
14,995,932
5,661,788
20,657,719
4,999,664
8,046,736
13,046,400
96
M SALEEM
OFFICE NO.3 GROUND FLOOR AKASH PLAZA BEHIND DEWAN SALMAN MOSQUE F-10 MARKAZ ISLAMABAD PLOT 470 C P BERAR SOCIETY BLK 7 AL MADINA ARCADE FLAT 7 4TH FLOO DHORAJI COLONY KARACHI HOUSE# 88/F/2 BLOCK# 2 P.E.C.H.S KARACHI HOUSE # IH-43, AIR FORCE OFFICERS HOUSING SCHEME, FAISAL CONTONMENT
37405-2387449-1
ALLAH BAKSH
1,698,265
736,070
2,434,335
423,265
736,070
1,159,335
97
MUHAMMAD IRFAN
42201-0666723-3
MUHAMMAD ILYAS
437,730
904,636
1,342,366
98
MUHAMMAD IMRAN
42301-8236466-3
ABDUL AZIZ
1,895,260
2,203,061
4,098,321
99
MUNA ANIS
42201-3236983-0
ANIS FAROOQI
2,871,714
2,844,950
5,716,665
100
MOHAMMAD RAFIQ RAJPUT IQBAL AHMED SHEIKH
H.NO. 59, BLOCK 6, PECHS,
KARACHI
42201-7017197-3
KALO RAJPUT
3,336,345
3,336,345
101
HOUSE C 215 BLOCK 6 F B AREA KARACHI
42101-1542327-7
NOOR AHMED SHEIKH SIBTE HASAN ABIDI
420,470
1,262,186
1,682,655
102
S.M ABBAS HASAN ABIDI
C-14, 5TH FLOOR PALM, BEACH HOME BLOCK-2, CLIFTON KARACHI
42301-7832533-3
2,474,970
2,974,827
5,449,797
103
SYED SAIR RAZA
AL MANZAR B4 SECTOR Z6 GULSHANE MAYYAMER SCH 45
42101-6027969-3
SYED ASAD RAZA
1,971,314
3,068,834
5,040,148

Annexure-1
Sr. No.
Name
Address
Principal
104
ARSHAD SAEED EFFENDI
AVENUE CENTRE STRACHAN ROAD ADJACENT PIA HEAD OFFICE
42301-0875872-9
SAEED ULLAH EFFENDI
1,361,744
2,015,289
3,377,033
105
MASHOOD UL HASSAN
R-11, ABID TOWNGULSHAN E IQBALBLOCK NO 1 D-41, ST 8-A 12ABID S & R, F.B AREA
42201-6618874-9
SHAHID HUSSAIN
1,027,480
1,198,778
2,226,259
106
MOHYED
H# 75-A LANE # 7-B GULISTAN COLONY RAWALPINDI HOUSE#48/3 16TH LANE KHAYABAN-EBADBAN PHASE 7 DHA KARACHI
37405-0316283-9
SHOAIB ALI
7,349,177
307,087
7,656,264
1,101,877
1,430,903
2,532,781
107
KHALID MUNIR VOHRA
42301-2557684-3
ELAHI BUSKH
3,192,622
3,198,788
6,391,410
108
IMRAN ALI
IMRAN BROTHERS 4-PURI HOUSE WEST WHARF ROAD KARACHI
42301-2295802-9
SAJAWAL HUSSAIN
1,319,066
1,444,630
2,763,695
109
HAMID RASOOL KHAN
LH # 10A ST # 2A PRAHIM NAGAR RIWAZ GARDEN LAHORE
35202-0278502-7
MOHAMMAD RAFIQ KHAN
14,499,890
5,933,211
20,433,101
4,949,890
5,933,211
10,883,101
110
NAZIR AHMED KHAN
H-16 BLOCK A PIA HOUSING SOCIETY NEAR JOHAR TOWN LAHORE
35301-1867471-7
AHMED KHAN
3,167,080
45,082
3,212,162
316,708
567,259
883,966
111
HASSAN MAJID
19-A, NEW AWAMI AUTO MARKET BADAMI BAGH LAHORE
35202-5362446-1
ABDUL MAJID
4,957,636
72,519
5,030,154
3,612,829
51,637
3,664,465
112
ZAFAR IQBAL BUTT
H # 2-SF NAZIR APPARTMENTS BLOCK 7 KASHMIR ROAD TNT COLONY RAWALPINDI ISLAMABAD
37405-0239263-7
SIRAJ UDDIN BUTT
292,500
540,543
833,043
113
MUHAMMAD NADEEM BUTT
H # 29/2 ST # 01 SHAHIGAN COLONY RAH E AMAN,NEW LALAZAR ISLAMABAD
37405-9719132-9
MUHAMMAD HANIF BUTT
1,015,585
1,040,376
2,055,961
114
IJAZ PASHA
HOUSE NO. 145, STREET NO. 6 ASKARI X
61101-1572643-1
GHULAM ABBAS PASHA
1,397,109
1,606,850
3,003,959
115
ZEESHAN HAIDER SHEIKH H NO 25 AWAMI ST NO 1 SANDA KALAN
35201-5135642-9
FAIZ ALI SHEIKH
5,999,864
842,827
6,842,691
1,999,864
842,827
2,842,691
116
ZAKI
21-C, WARIS COLONY WAHDAT ROAD LAHORE H NO 15 ST 48 ISLAMABAD COLONY SAMANABAD 7595883/03009423175/7555141 LAHORE
35202-1138968-3
MUHAMMAD AHMED RAB WAZ
4,019,696
1,140,807
5,160,503
984,496
1,470,521
2,455,017
117
TAHIR NAWAZ
35202-3697560-9
3,633,032
3,398,612
7,031,644
2,133,032
3,398,612
5,531,644
118
ISHTIAQ AHMED ANSARI
WADALA ROAD MOHALLA BANWALA DASKA KALAN DASKA
34601-9908260-1
SA ULLAH
7,233,045
444,359
7,677,403
722,000
1,273,772
1,995,771
119
ZAFAR HUSSAIN
H# 4001 MOH WALYAT NEAR PUL SNAWALA HASSAN PARWANA ROAD MULTAN
36302-0120873-5
MUHAMMAD HUSSAIN
1,949,940
797,070
2,747,010
579,940
830,192
1,410,132
120
35202-2760836-3
MALIK AFSAR KHAN
839,707
839,707
848,523
205,173
1,053,696
121
35202-2760836-3
MALIK AFSAR KHAN
823,496
823,496
829,992
169,019
999,011
122
MR FAYYAZ ABDUL MAJEED
ABDUL MAJEED & CO 405 4TH FLOOR GUL TOWER I.I CHUNDRIGAR ROAD
42301-0560282-3
A MAJEED
371,646
12,210
383,856
411,593
103,778
515,371
123
MR MUHAMMAD IQBAL SAHTO
33/1/11 8 GIZRI LANE PHASE-4 D.H.A
42301-2758354-3
MUHAMMAD SAFFAR SAHTO
34,081
34,081
510,827
153,307
664,134
124
MR USMAN MASOUD
177 - A , AHMED BLK NEW GARDEN TOWN LAHORE
35202-5483047-7
MOHAMMAD MASOOD
985,457
196,258
1,181,715
1,248,812
1,248,812
125
MR SHEIKH MUBARIK ALI
SUNSHINE PAPER STORES 6 NOOR CHAMBER BANGALI GALI GUNPAT RD LAHORE
35200-1434279-9
SHEIKH KARAMAT ALI
411,335
411,335
441,372
140,760
582,132

Annexure-1
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Name
Address
Principal
126
NADEEM ISMAIL
41-B COMMERCIAL AREA CAVALRY GROUND LAHORE
35202-5880308-9
SH M ISMAIL
907,935
138,770
1,046,705
909,965
187,271
1,097,236
127
SHEIKH HAFEEZ UR
SHOP # U 819 KALAN BAZAR NEAR URDU BAZAR RAWALPINDI RAWALPINDI
37405-2542055-5
SHAIKH AZIZ UR REHMAN
363,174
216,181
579,354
337,933
242,262
580,194
128
SYED WASIF ALI
270/Q L.C.C.H.S DEFENCE LAHORE CANTT LAHORE
35201-7183727-3
SYED ABDUL ALI SHAH
578,558
107,894
686,451
546,099
105,023
651,122
129
M ILYAS
LATIF MEDICAL CENTRE GR FLR TRADE CENTRE F 11 ISLAMABAD 03
61101-5058257-7
ABDUL LATI F
478,483
12,198
490,681
471,764
78,190
549,954
130
I M MIRZA
40 D 3 WAPDA TOWN LAHORE
35202-7808379-7
AL HAJ GHULAM MOHAMMAD M SIDDIQUE
499,699
12,660
512,358
501,729
82,284
584,013
131
KHALID MEHMOOD
M 1901 NEAR GUL NOOR HOTEL MURREER ROAD RAWALPINDI
37405-0214971-9
582,000
62,062
644,062
584,030
109,443
693,473
132
JAMIL AHMAD
29/195 ALLAUDDIN ROAD, ST 3 LAHORE CANTT.6672741 43/7C BLOCK 6 P.E.C.H.S KARACHI
35201-8529440-9
A. A. REHMAN
544,153
13,993
558,146
597,856
96,778
694,634
133
S IMDAD SHAH
42201-0763835-5
GHULAM MUHAMMAD SHAH MALIK FAZAL HUSSAIN SYED MAHMOOD BOKHARI RASHEED AHMAD MOEED ASGHAR KIDWANI SHAIKH ABDUL REHMAN
954,743
77,715
1,032,458
429,743
97,778
527,521
134
NAEEM FAZAL
7/H II WAPDA TOWN LAHORE 5185068
35202-4657678-9
735,924
113,965
849,888
735,924
141,617
877,541
135
S FAIYAZ MEHMOOD
HOUS ENO 269-W D.H.A. PHASE 3 LAHORE
35201-2430660-7
449,567
11,317
460,884
438,077
73,503
511,580
136
A RAHSID
93 CIRCULAR ROAD LAHORE
35202-2882229-3
459,219
13,888
473,107
439,345
82,415
521,760
137
MOEED ASGHAR
70/A 13TH SOUTH STREET PHASE II DHA KARACHI RAHMAN & COMPANY RAHMAN CENTRE PLAZA SQ M.A.JINNAH RD KARACHI 7724740
514-49-033955
491,899
81,279
573,178
491,899
82,533
574,431
138
SHEIKH JAMIL
42301-0895746-7
159
159
548,130
89,464
637,594
139
S HASAN JAMAL ZAIDI
FRITZ COMPANIES 21-A BLOCK-H GULBERG-II LAHORE-5764581-5
270-58-510150
HASSAN JAMAL ZAIDI
904,509
22,837
927,346
876,896
145,650
1,022,546
140
QAZI TAMMAM
103 1ST FLOOR LATIF PLAZA FEROZEPUR ROAD, ICHHRA LAHORE
35202-2409818-7
QAZI ALTAF ULLAH
575,144
16,535
591,679
624,515
114,912
739,427
141
M ADNAN KHAN
HOUSE# 37 I LANE# 1 TULSA ROAD LALAZAR COLONY CANTT RAWALPINDI HOUSE # D-2, BLOCK 13/D-1, GULSHAN-EIQBAL, KARACHI
37405-4064950-7
M SHER KHAN
499,280
68,912
568,192
499,280
84,178
583,458
142
SYED NASIR RAZA
42101-1739755-1
S FURZAND RAZA MOHAMMAD MASOOD
989,710
28,633
1,018,343
969,944
180,487
1,150,431
143
USMAN MASOUD
35202-5483047-7
459,518
69,831
529,349
459,518
94,343
553,861
144
KHAWAJA IZHAR ULHAQ
89 MECLEOD ROAD, LAHORE
35202-2812360-5
876,928
25,390
902,318
865,108
108,483
973,591
145
AASHIQ HUSSAIN BHAT
132 C 1 FAISAL TOWN LAHORE
270-52-599634
AASHIQ HUSSAIN BHATTI TAJMUL HASSAN MALIK
469,582
88,506
558,088
469,582
91,346
560,928
146
WASEEM PASHA
HOUSE # 107 STREET 11 WESTRIDGE 1 RAWALPINDI
37405-6350019-1
603,941
15,498
619,439
647,726
107,863
755,589
147
SYED MARGHOOB ALAM
5TH FLOOR IMTIAZ PLAZA 85 SHAHRA E QUAID I AZAM LAHORE
35202-2498982-3
SYED MAY ALI
599,207
14,999
614,206
593,088
98,917
692,005
148
FAIZ NABI
18/H ASKARI III SCHOOL ROAD KARACHI CANTT KARACHI PLOT NO 54 BLOCK-4 KARIM PARK
42301-7156177-9
SAJJAD NABI
551,086
82,449
633,535
495,627
104,268
599,895
149
MUHAMMAD SIDDIQUE
35202-2521079-1
MIAN QAMAR UDDIN
573,130
47,370
620,499
438,192
73,172
511,364

Annexure-1
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Name
Address
Principal
150
MUHAMMAD SHAHID
515B BLOCKSABZAZAR SCHEME MULTAN RDLAHORE SHAHID GARMENTS RIAZ BUILDING RANGMEHAL LAHORE
35202-2301559-1
MOHAMMAD ISHFAQ
452,607
25,047
477,653
452,607
74,151
526,758
151
ZAFAR IQBAL
L/893SECTOR 5A1NORTH KARACHIKARACHI CD 388/389GABOL TOWNSECTOR 16/BF.B.AREAKARACHI 247/B BLOCK 6 P.E.C.H.S. KARACHI KARACHI FLAT NO K-158TH FLOORMAYFAIR CENTRE SADDARKARACHI SUIT NO 55HASHMI ELECTRONICS MARKETA HAROON ROAD S
42101-1502481-9
MUNWAR ALI
483,992
11,921
495,913
455,543
74,115
529,658
152
ASIF JOHN
42000-7486178-5
JAN KHAN
908,205
23,053
931,258
935,902
152,998
1,088,901
153
WAHEED AHMED
246-73-368459
MOHAMMAD ARSHAD
494,792
78,762
573,555
494,792
92,630
587,422
154
ZEESHAN AHMAD
16-BROYAL ENCLAVEFLAT NO 47SECTOR G5 DIPLOMATIC E 24 MEZZANINEMUHAMMADI PLAZANEAR AMERICAN EXPRESS B
61101-5465682-5
IKRAM ZAFAR
493,755
54,408
548,164
493,755
81,883
575,638
155
ABDUL KABIR BUTT
H NO 194ST NO 7MARGALLA TOWNISLAMABAD SHOP NO 7,868EJINNAH AVENUEPAKTEL PLAZA, BLUE AREA 8 ABBOT ROAD LAHORE
260-61-539717
GHULAM QADIR BUTT
477,640
54,037
531,677
443,400
74,648
518,049
156
MUHAMMAD IRFAN
35202-0368453-7
CHAUDHRY MOHAMMAD YOUSAF HAJI ZIR AHMED
498,913
13,518
512,432
500,999
81,712
582,710
157
AURANGZEB
PASRUR ROAD, HNO 12/345MUHALLAH BABAY BERI GHALA MANDIOLD CHOWK JUNDAR BAZARHAJI PURA ROAD, K
34603-9382539-1
419,250
186,346
605,596
405,287
243,702
648,988
158
NASIR MANZOOR
H # 163ST # 63SECTOR G-7/2-4ISLAMABAD H # 589LABOUR COLONYIBN E SINA ROADG 9/3ISLAMABAD
61101-2892226-9
MANZOOR AHMED
499,395
68,963
568,359
499,395
84,232
583,628
159
KHALID IQBAL
210 PAK BLOCK ALLAMA IQBAL TOWN LAHORE
35202-8309522-5
CH MUHAMMAD IQBAL
494,807
15,138
509,945
494,807
91,349
586,156
160
ARSHAD MEER
FLAT NO 402, 4TH FLOORCHAPPAL BEACH ARCADE 2BLOCK H NO 4, SHOP NO 2 AREA 5/D, BLOCK 91LANDHI NO 6 KARACHI
42301-9789752-3
MIR GHULAM MUHAMMAD
491,642
491,642
499,972
92,724
592,696
161
SHAKAIB BAQIR
384-FF DHA LHCDEFENCE HOUSING SOCIETYLAHORE 384-FF DHA LHCDEFENCE HOUSING SOCIETYLAHORE
35200-1453915-9
QAISAR HUSSAIN
473,684
63,830
537,514
473,684
90,382
564,066
162
ASAD ALI KHAN
H # ZB-317/27ST # 1GULISTAN FATIMA COLONY MOHALLA A MAIN MURREE ROAD RAWALPINDI GENERAL HOSPITAL
37105-0278187-3
SHAIR MUHAMMAD
480,872
89,278
570,150
480,872
104,422
585,295
163
ARSHAD ALI
H NO.135 SHAHID TOWNMAIN ST NO.1GHAZI ROADCANTT M 14-J COMMERCIAL AREA MUGHAL MKTDHA LAHORE
35201-1632805-7
WALI MUHAMMAD
376,513
376,513
499,670
89,650
589,319
164
MUHAMMAD ABRAIZ ABBASI
BASEMENT NO 4 FEROZE CENTRE 14-D BLUE AREA ISLAMABAD
37405-9146604-1
ABDUL HAMID KHAN
409,648
124,827
534,475
396,655
134,323
530,978
165
MUSHTAQ ALI JIVANI
FLAT NO 106, ML PARADISEBURGARI BAZAR NISHTAR PARK ROOM NO 701, 7TH FLOORMUSTAFA CLOTH MARKET MONTANDA A182 GULSHAN-E-RABIA, BLOCK 13D2, GULSHAN-E-IQBAL KARACHI,
42301-0847957-1
HUSSAIN ALI
498,036
27,342
525,378
490,565
80,481
571,046
166
ADAM MUHAMMAD
42000-0364832-3
MOHAMMAD BUDHANI
486,433
12,468
498,901
500,931
81,838
582,769
167
SHAN ALI CHAUDHRY
35-SHADMAN COLONY #1, SHADMAN LAHORE
35202-1262093-5
CHAUDHARY GHULAM RASOOL
499,849
77,005
576,853
485,169
106,623
591,792

Annexure-1
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Name
Address
Principal
168
MUHAMMAD ARSHAD
MAUZA RAIWIND KHURD MAIN ROAD CHOWKRAILWAY ROAD RAIWIND
35202-2770335-7
MUHAMMAD SHAFIH
443,837
41,317
485,155
443,837
96,086
539,923
169
SHAHZAD IQBAL KHAN
HOUSE NO 1853 C-4, SECTOR 16 ORANGI TOWN KARACHI
42401-2265854-1
AYUB KHAN
489,701
40,702
530,403
493,416
82,041
575,458
170
ZAFAR MEHMOOD ABBASI OFF. 5, 1ST FLOOR, KALA KHAN SHOPPING CENTER SHAMASABAD
37404-4623469-9
MOHD ARIF KHAN
393,306
93,084
486,390
387,317
116,402
503,718
171
MR CHAUDHRY G QUMAIS 731,ST NO 74 G-10/4 ISLAMABAD. 256131
61101-3216595-5
CHAUDRY NIZAMUDDIN
489,086
15,280
504,366
478,258
142,608
620,867
172
MR WASEEM P TAJAMMAL HOUSE NO 107, ST 11 WESTRIDGE 1, RAWALPINDI.
37405-6350019-1
TAJMUL HASSAN MALIK
364,974
13,662
378,636
400,433
129,249
529,682
173
MR KHAWAJA IZHAR ULHAQ
292 M BLOCK MODEL TOWN EXTENTION LAHORE
35202-2812360-5
406,685
13,130
419,815
424,970
118,019
542,989
174
MALIK HADI HUSSAIN
152-F,MODEL TOWN LAHORE. 5830991
35202-2087176-9
MALIK FAZAL U DIN MOHAMMAD FAROOQ DOSA
473,124
114,079
587,203
475,212
129,006
604,218
175
MR ISMAIL DOSSA
RELIANCE INDUS.(PVT)LTD PLOT 23, SECTOR 23 KORANGI ND.AREA, KARACHI
42301-3186357-9
434,146
434,146
435,345
140,511
575,856
176
MR AMER SAEED
LAIBA LOOK INTERNATIONAL YAZDANI ROAD RIAZABAD HARBANS PURA NEAR PEPSI WARE HOUSE BEST BRANDS INC 181-CCA PHASE IV DHA C 5 SHADAB COLONY TEMPLE ROAD LAHORE
35201-6110862-9
SAEED AHMED
247,542
247,542
371,673
196,432
568,106
177 178
MS KRIS STRATE MR AAMIR HUSSAIN CHAUDHRY.
84035-2466001-2 35202-0883188-5
DONN STRATE CHAUDHRY GHULAM HUSSAIN
501,644 493,803
85,417 -
587,061 493,803
508,140 494,358
133,626 161,690
641,766 656,048
179
MALIK RAB NAWAZ NOON MALIK RUB NAWAZ NOON H NO 27-C, CIVIL LINES
37405-0490370-3
MALIK MOHAMMAD SADIQ
515,569
49,065
564,634
180
MR. TAHIR IQBAL CHEEMA 135-SADAR BAZAR AREA
34104-9850879-1
SAJJAD ALI CHEEMA SHEIKH ABDUL HAMEED
498,728
498,728
497,355
170,314
667,669
181
MR SHEIKH ABDUL HAFEEZ
PUNJAB ENGINEERING SERVICES PV 6 -R B12 OPPOSITE SAEED MANZIL M. A. JINNAH ROAD
42301-7311703-1
462,794
14,710
477,505
444,704
112,864
557,568
182
MR RAJA HAMMAD ARSHAD
PIONEER ELECTRONICS OFFICE#31-A AZHAR SHAHEED MARKET KASHMIR ROAD SADDAR RAWALPINDI
37405-7897890-5
RAJA ARSHAD KAMAN
459,191
459,191
483,646
125,910
609,556
183
SUALEHA BHATTI
WINNING EGDE C-16 HABIB CENTER B LOCK-5 CLIFTON
516-62-075883
BHATTI
491,199
32,724
523,924
481,993
83,785
565,779
184
MR ASIM EJAZ MALIK
369-AA PHASE-4 D.H.A LAHORE CANTT.
273-88-92227
MOHAMMAD IBRAHIM MALIK
565,487
288
565,775
185
MR AAMIR MANZOOR CHAUDHRY
NEW 601 CERAMICS AND GELASS IN Q UATABPUR OLD SHUJABAD ROAD
36302-0371505-7
CH MANZOOR AHMED
438,011
50,320
488,332
448,528
118,938
567,465
186
SHAHBAZ ALI
FUTURE MOBILE FUTURE MOBILES, 12 -G HAFEEZ CENTER MAIN BOULEVARD GULBERG LAHORE
35202-7637509-5
CHAUDHRY MUHAMMAD RAFI
387,950
119,936
507,886
187
MR NAYYER IQBAL KHAN
A-101 PRIME RESIDENCY CL-10 CIVIL LINES KARACHI LOYAL SPORTS PVT LTD INDUSTRIAL ESTATE SIALKOT
42201-3251081-5
IQBAL ZAHIR KHAN SHEIKH MOHAMMAD SARWAR
434,629
69,689
504,317
442,886
111,237
554,123
188
MR M WAQAS SANDAL
34603-2150488-5
595,100
595,100
609,861
609,861

Annexure-1
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Name
Address
Principal
189
MUHAMMAD ARSHAD
HOUSE NO 632 GALI NO 3 AYUB COLONY
33100-8743938-5
MOHAMMAD SHARIF TAJ MUHD
480,018
32,975
512,993
491,891
126,895
618,786
190
IJAZ AHMAD
C/O DREAM CAR PARK PLAZA SHOP NO .1,2,3, & 4 FAZAL-E-HA ROAD BLUE AREA OPP POLYCLINIC HOSP. MURU GROUP INTERNATIONAL 177-A, AHMED BLOCK NEW GARDEN TOWN H NO 12, BLOCK C MODEL TOWN, FAISALABAD
37405-3103828-7
480,159
15,644
495,803
488,548
54,166
542,714
191
MR USMAN MASOUD
35202-5483047-7
MOHAMMAD MASOOD MOHAMMAD IRSHAD ANWER
493,142
90,820
583,961
497,318
121,867
619,184
192
MR RIZWAN ARSHAD
33100-5554834-9
533,468
41,934
575,402
545,816
136,773
682,589
193
NOUMAN ANWER
51-A NISAR ROAD ST.4 CANTT
274-87-331357
474,786
64,800
539,586
481,282
107,363
588,645
194
MR SYED KHAWAR ALI
APEX COMMUNICATION 32-1, C/1 BLOCK 6 PECHS APEX HOUSE
42201-4032116-5
SYED ASHIQ HUSSAIN
493,993
79,073
573,066
496,081
94,437
590,519
195
TARIQ SOHAIL
TARIQ SOHAIL 'HOUSE NO 1001 STREET NO 105 I-10/4
61101-1802394-9
MUHAMMAD SHARIF
498,935
123,924
622,860
501,023
139,595
640,618
196
MR SETH NISAR AHMED
HON. CONSUL OF THE REP. OF KAZHAKHSTAN 196-L-MODEL TOWN EXTN
35202-2792709-9
MOHAMMAD LATIF
662,171
82
662,254
197
HAROON BASHIR
PLOT NO 90, STREET NO 7 SECTOR# I-10/3
61101-1991102-7
BASHIR HUSSAIN
397,902
12,932
410,834
432,307
123,457
555,764
198
MR FAIZ UL HASAN
W S FORMS QURESHI STREET RORAS R OAD NEAR MAKKI MASJID NEW MUBARA K PURA
34603-7209250-9
CHUDHARY MUHAMMAD ISHAQ
392,833
25,080
417,913
419,016
100,506
519,522
199
MR MUHAMMED ISMAIL F RELIANCE INDUSTRIES PVT LTD PLT 23 DOSSA SECTOR-23 K.I.A MAIN ROAD NEA R TOYOTA SHOW ROOM
42301-3186357-9
MOHAMMAD FAROOQ DOSA
888,576
888,576
889,434
889,434
200
TARIQ MEHMOOD
TARIQ TRADERS 26-ALLAMA IQBAL ROAD LAHORE
35201-4698183-9
CHAUDHARY GUFTAR AHMAD
478,665
14,975
493,640
483,268
214,236
697,504
201
WAQAS SHAHID
496-F JOHAR TOWN
35202-1718192-9
SHAHID FAROOQ
501,488
131,100
632,588
503,576
146,135
649,711
202
MR SHAHZAD IQBAL KHAN HOUSE NO 1853 SECTOR 16 C-4 STREET 9 OPPOSITE ASIA GROUND ORANGI TOWN GULSHAN-E-BIHARE
42401-2265854-1
AYUB KHAN
504,627
87,608
592,235
513,443
119,372
632,814
203
KASHIF ALI
721 D FAISAL TOWN
35202-2685153-5
SH MUHAMMAD ASHRAF
397,182
397,182
399,532
138,976
538,508
204
MUHAMMAD ALMANI
FLAT NO 374 BLOCK ""G"" SULTANABAD COLONY PLOT NO 61 GULBAR NO 1
42101-0730230-9
SIKANDAR ILWANI
473,598
37,897
511,495
485,647
131,583
617,230
205
WAQAS RASHEED
SHOP NO.28 GROUND FLOOR IBRAR BUSINESS CENTRE WAHDAT ROAD LAHORE
35202-6513190-5
ABDUR RASHEED
423,883
80,502
504,385
428,059
107,525
535,585
206
ANWAR MANJI
F-16 EVERSHINE SQUARE BLOCK 10 GULSHAN E IQBAL NEAR SINDBAD NEAR SINDBAD HATF REAL ESTATE SERVICES OFFICE NO 1, 2ND FLOOR LORDS TRADE CEN TER SECTOR F-11 MARKAZ
42101-7570468-7
HYDER ALI
462,357
28,994
491,351
456,784
125,583
582,367
207
MR ZEESHAN AHMED ZAFAR
61101-5465682-5
IKRAM ZAFAR
493,469
97,547
591,016
497,645
108,794
606,439
208
MIAN MOHAMMAD IQBAL
101B GULBERG II
35202-4847431-7
MUHAMMAD SHARIF WAHEEDULLAH
408,316
13,478
421,794
479,686
127,088
606,774
209
GOHAR ALI
I-G TRADERS 11/15 CANTONMENT PLA ZA THE MALL RAINBOW JEWELLERY HOUSE SH NO 12 3 PAK MARKET SHAH ALAM MARKET
90403-0150038-7
503,930
72,733
576,663
519,043
44,727
563,771
210
ALI KAZIM
35202-3042612-1
ASIF ALI
490,101
21,854
511,955
487,141
164,120
651,261

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211
YASMIN MAJID
H:6- STREET NO 19 F-6/2
61101-8190819-6
KHAWAJA FAROOQ MAJID
459,949
459,949
470,246
151,644
621,891
212
MR AHMED EL RHAIDI
EMBASSAY OF THE KINGDOM OF MOR 6 GOMAL ROAD E/7 96-E MODEL TOWN RAWAL ENTERPRISES F 2712 MOTI BA ZAR INSIDE MASTI GATE BANGLOW 9 CRYSTLE BANGLOW GAZI ABBASD BEHIND EID GHAH MULTAN MULTAN
A002895
518,038
32,695
550,733
502,734
64,596
567,331
213 214
MS UZMA ASAD IFTIKHAR AHMAD
35202-7940382-4 35202-2935494-1
MIAN ASAD MUNIR MUHAMMAD HUSSAIN S SAJID HUSSAIN JAFRI
503,292 474,997
23,651 47,062
526,943 522,059
497,393 484,403
172,284 117,803
669,678 602,206
215
S FARHAT ABBAS JAFARI
270-88-434045
352,232
352,232
540,619
79,503
620,122
216
SYED SABAHAT ALI SHAH FIRST FLOOR SOFTWARE TECHNOLOGY PARK 1 AWAMI MARKAZ, CONSTITUTION AVENUE F-5/1 ISLAMABAD ISLAMABAD MUHAMMAD ARIF H NO 77-K, BLOCK NO 02 GHAZALI ROAD, P.E.C.H.S PLOT NO 57, SECTOR NO 24 KORANGI INDUSTRIAL AREA H # 106-R, PARADISE HOMES, ABUL HASSAN ASPAHANI ROAD, KARACHI R-294,RAFI BANGLOW MALIR NEW BABAL MARKET KARACHI WORLD STYLE SKIN TREATMENT SHOP# 1 REHMAT PLAZA COMMERCIAL MARKET NEAR N B P RAWALPINDI 49 BABAR BLOCK NEW GARDEN TOWN HAROON STREET LAHORE SARDAR COOL CORNER SHOP# 15 STATION ROAD NEAR OPPT HABIB HOTEL HYDERABAD HOUSE# 430 BLOCK-M MODEL TOWN LAHORE 30-ICI TOWN SHIP BUTT CHOWK H # 10/A, ST # MOHALLA SIDDIQUE GUNJ SHER SHA WASON PURA LAHORE HAZRAT KARMAN WALA UNITY CORNER SHOP# A-4 ABUL HASSAN ISPHANI ROAD BLK-4A KARACHI H # 31 ST # 24/A MUHALLAH FAZAL STREET BANK COLONY LAHORE 3-A AKBER WALI STREE NA NA LAHORE
42501-2070278-5
SYED FARASAT ALI SHAH
553,663
18,007
571,670
588,292
588,292
217
42201-1296802-9
ABDUL HAMEED
636,518
636,518
619,435
37,933
657,367
218
SYED KASHIF SAGHEER ZAIDI SYED JOHAR ABBAS ALI SHAH MUHAMMAD PERVAIZ HAYAT
42201-3643060-5
SYED SAGHIR HUSSAIN ZAIDI SYED SIR ABBAS ALI SHAH MUHAMMAD HAYAT
546,518
7,222
553,740
475,459
77,896
553,356
219
42201-7228380-9
515,364
5,867
521,231
497,885
50,245
548,131
220
37405-9731825-3
909,997
47,107
957,104
959,996
959,996
221
RAJA RIAZ AHMED
210-65-856041
RAJA MHD HUSSAIN ZAR MOHD URF TALIB
642,000
642,000
222
SARDAR KHAN
41303-7483159-9
528,682
20,797
549,479
556,183
556,183
223
ZUBI ARSHAD
37405-0229152-4
MALIK ZIA MAHMOOD RAZA HUSSAN SHEIKH MUHAMMAD SHAREEF IRAHAD MEHMOOD
796,279
9,401
805,680
766,662
68,485
835,147
224 225
SHAHID RAZA MUHAMMAD JAVAID IQBAL WAJID MEHMOOD
35202-0855588-3 35202-9496484-9
497,771 502,907
10,974 13,173
508,745 516,080
1,008,673 469,412
18,540 35,851
1,027,214 505,263
226
42201-5095551-1
477,132
12,290
489,422
507,036
507,036
227
MUHAMMAD AJMAL
35202-2680859-3
MUHAMMAD ASHRAF SHAH MOHAMMAD MUHAMMAD ASLAM KHAN DURANI SAEED AZHAR ALI SHAH CH M BOTA
626,626
626,626
228
MUZAFFAR ALI
35302-4020038-3
510,058
510,058
458,616
43,153
501,769
229
AYUB DURRANI
1-3/A 100 HABIB PLAZA FAZAL E HAQ ROAD BLUE AREA ISLAMABAD
61101-3789412-9
14,939,248
5,228,274
20,167,522
12,013,194
12,013,194
230
SYED ATHER ALI SHAH
HOUSE NO 170-BB PHASEIV D.H.A LAHORE
35201-1587734-3
6,422,227
192,168
6,614,395
1,386,904
1,386,904
231
MUHAMMAD ASHIQ
177 KHYBER BLOCK ALLAMA IQBAL TOWN LAHORE AHMED PLAZA OFFICE # 1 2ND FLOOR TIKA GALI # 1 FAISALABAD MAHRIA CLEARIUN & FORWARDING AGENCY ROOM NO 2-E, 2RD FLOOR MUHAMMAD BAKSH & SONS BUILDING, 23-WEST WHARF ROAD KARACHI
FLAT 10, 101 WEST WIND ESTATES FL-11, CLIFTON, KARACHI. 5879099/5861323/03332103313 CLIFTON
35202-2524810-9
2,247,586
628,241
2,875,827
1,350,706
1,350,706
232
SHEIKH MUHAMMAD KHALID RAFI EJAZ KHALID
33100-4129492-5
SH MOHAMMAD RAFI BOOTAY KHAN
4,801,529
1,832,891
6,634,419
3,401,805
3,401,805
233
35202-2745477-9
2,679,480
2,679,480
1,740,485
1,740,485
234
AMIR MAJEED
42301-6831572-5
ABDUL MAJEED
6,568,072
6,568,072
4,274,751
4,274,751

Annexure-1
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235
ISHTIAQ AHMED KHAN
HOUSE # 109/2 SANA SYE CLINIC E BLOCK SATELLITE TOWN RAWALPINDI SHOP # 1 REHMAN STREET NO 16 BRANDRATH ROAD LAHORE D-6,BLOCK-7, JASON VIP APARTMENT CLIFTON,KARACHI. PECHS
37405-4051344-5
MUHD ASLAM KHAN MUHAMMAD ISMAIL ABDUL GHAFFAR
6,381,631
414,225
6,795,856
1,456,581
1,456,581
236
MIAN IRFAN AKMAL
35202-8483741-1
4,276,155
1,150,537
5,426,692
1,922,512
1,922,512
237
NASIR GHAFFAR
42201-6414806-3
3,859,082
478,667
4,337,749
661,132
661,132
238
RIAZ AHMED
H NO 2 AS, QADRI ST 16 MUHAMMAD ALI ROAD ICHRA LAHORE 5452491108754758 LAHORE 50-A-11 LAWRANCE ROAD LAHORE LAHORE 573-B, MODEL TOWN GUJRANWALA
35201-6208090-5
CHAN DIN
1,240,722
408,960
1,649,682
836,772
836,772
239
ALI ZAHID
35202-2467252-3
AKHTAR ALI
2,660,037
1,112,253
3,772,290
2,175,403
2,175,403
240
MUHAMMAD RIZWAN
34101-4255215-1
HAJI MUHAMMAD ABDUL RAHI MUGHAL
2,436,761
81,374
2,518,135
620,418
620,418
241
MUHAMMAD YAMEEN MUGHAL
HOUSE # B-1,310STREET # 2,MUSLIM TOWN NEARMASJID F SHOP # B-1,438KURI ROAD NEARATTA CHAKKISADIQABADRA HOUSE A-28 SECTOR-V SUB SECTOR-II GULSHAN-E-MAYMAR KDA SCHEME-45 KARACHI. 2474255/0300-2796344/03042963922 GULSHAN -E- MAYMAR
37405-8925326-1
2,396,918
685,408
3,082,326
1,315,163
1,315,163
242
ASIF
42101-1750500-7
CHARAGH UD DIN
3,727,703
1,107,688
4,835,391
2,085,537
2,085,537
243
MOHAMMAD IBRAHIM SHEIKH
HOUSE C-58 OWN HOMES F-B-AREA BLOCK 21 ,BEHIND CENTRUM SHOPPING MALL KHI. KARACHI
42201-4506647-1
M YOUSUF
2,568,759
530,429
3,099,188
1,044,238
1,044,238
244
MUHAMMAD AZHAR ALI
48/2, BANK COLONY INDAR NAGAR BASTAMI ROAD SAMANABAD LAHORE. 7595760/0300-4475663/7637426 SAMANABAD PLOT 28/A/4, V-1-2, 33RD ST PH-5, DHA, KARACHI. 5347876/0300-2305142/5343521 CLIFTON HOUSE 338 NARGIS BLOCK ALLAMA IQBAL TOWN LAHORE. 7840024/03004841449/7724661 IQBAL TOWN
35202-6310730-9
MUHAMMAD ASLAM ALI
1,465,649
510,720
1,976,369
858,092
858,092
245
EJAZ HAIDER
42301-8230895-9
SHAFQAT HUSSAIN
12,118,063
5,425,308
17,543,371
6,142,237
6,142,237
246
SHAHID ABBAS
35202-6066278-5
MUHAMMAD ABBAS
5,578,112
978,282
6,556,394
3,368,431
3,368,431
247
JAVED IQBAL KHAN
37 / II, MAIN KHY-E-BAHARIA PHASE V, D.H.A. 3008203222 DHA KARACHI
42301-5661982-7
IQBAL AHMED KHAN
18,016,123
2,312,928
20,329,051
5,849,957
5,849,957
248
NAEEM HAMEED
1466 H MIAN CIRCULAR ROAD OUTSIDE AKBARI GATE LAHORE
35202-2826783-9
ABDUL HAMEED
996,471
702,713
1,699,183
898,715
898,715
249
EJAZ HAIDER
H NO.1990 ST NO.2MAIN BAZARMANSOORABADFAISALABAD SHOP NO.35/34 IST FLOOR3RD GALLERYREX CITY SATIANA APARTMENT # 1,FIRST FLOOR,PLOT # C26TH BADAR COMM.STREET,PHASE V EXT,D H A DHA KARACHI SHOP NO 48, MEMON PLAZA ABIGAL OFF NISHTAR ROAD KARACHI KARACHI HOUSE # 55-S BLOCK 6 PECHS PAKISTAN EMPLOYEES CO-OPERATIVE HOUSING SOCIETY
33105-0198588-1
MIRZA GHULAM HAIDAR
3,220,680
869,101
4,089,781
1,131,976
1,131,976
250
AZRA
42301-0981148-8
NADEEM LIAQUAT
798,090
323,025
1,121,114
571,921
571,921
251
ASGHAR ALI
42301-1014173-9
SULEMAN
1,954,402
520,605
2,475,007
1,072,466
1,072,466
252
IMRAN SABIR
42201-4154606-7
MOHAMMAD SABIR
5,945,271
686,630
6,631,901
1,727,345
1,727,345
253
RIAZ AHMAD KHAN
FLAT # 401, CLIFTON VIEW APT FRERE TOWN, NEAR TEEN TALWAR CLIFTON GULSHAN -E- IQBAL HOUSE# 75, BLOCK-I,SHEES MEHAL KRS, CAPTAIN ROAD, JAMSHED QUARTERS B-2, BLOCK# 3,DARUL ISLAM ROAD, TOWNSHIP, TOWNSHIP RAILWAY ROAD WARD -09 CHAH KHOLAY RAILWAY ROAD
41304-9693644-5
WAHID ALI KHAN
2,136,327
561,260
2,697,587
1,262,605
1,262,605
254
MUHAMMAD IQBAL
42301-1116504-9
ABDUL GHAFFAR CH. AMEER ALI
2,400,950
155,607
2,556,557
591,190
591,190
255
ZAFAR IQBAL
35202-2914926-7
1,459,674
378,833
1,838,507
714,234
714,234
256
ALTAF HUSAIN
34201-0563615-3
KHADIM HUSAIN
778,043
391,855
1,169,898
601,750
601,750

Annexure-1
Sr. No.
Name
Address
Principal
257
ABDUL RASHID
HOUSE # 28-B/1, KHAYABAN-E-BAHRIA, PHASE -7, DHA. H # R269 LINES AREA, SECTOR 1-A JINNAH ROAD MA
42201-8240575-5
ABDUL KARIM LAKHANI MOIN UDDIN
23,775,433
9,118,375
32,893,808
19,875,154
19,875,154
258
SHAHAB UD DIN
42201-2150016-3
2,328,592
848,687
3,177,279
1,542,862
1,542,862
259
FAYYAZ UL HASSAN
RORAS ROAD NEAR MAKKI MASJID NEW MUBARIK PURA MUBARAK PURA SLK
34603-7209250-9
CHUDHARY MUHAMMAD ISHAQ SULTAN AHMED
2,711,573
597,098
3,308,671
1,510,984
1,510,984
260
IFTIKHAR SULTAN
18 2ND FLOOR, NATIONAL BUSINESS CENTRE, SHAMAS ABAD I-8/4 H # R-645, BLOCK # 19 F.B. AREA DHA KARACHI PLAZA SHOES SAID NAGRI MARKET, JOHAR TOWN H NO R-195, BLOCK 15-A/4 BUFFER ZONE
61101-3671428-7
13,974,757
883,698
14,858,456
3,374,619
3,374,619
261
MANSOOB HASSAN DURANI NAEEM MUMTAZ
42101-0368659-9
MASROOR HASAN KHAN MUMTAZ AHMED SYED RIAST ALI SHAH MOHAMMAD SHIBLI GHULAM ALI
1,767,569
869,550
2,637,119
1,341,951
1,341,951
262
34101-5033210-5
4,542,206
1,742,632
6,284,838
3,300,714
3,300,714
263
SYED IMRAN ALI SHAH
42101-1914830-7
2,833,773
681,111
3,514,884
1,560,744
1,560,744
264
TABISH AHMER
FLAT # A-109, RUFI HEAVEN 13-D/2, GULSHAN-E-IQBAL GULSHAN-E-IQBAL HEAD OFFICE 6TH FLOOR MADINA CITY MALL SADDAR DHA KARACHI FLAT # 113, BLOCK -B, RUFI HEAVEN, GULSHAN-E-IQBAL.BLOCK -13-D-2. GULISTAN -E- JOHAR HOUSE # A-80,BLOCK 9 YASEENABAD FEDERAL B AREA GULSHAN -E- IQBAL B-55-12TH STREET GUSHAN-E-FAISAL COOPERATIVE SOCIETY, BATH ISLAND BATH ISLAND H NO 11 ST NO 57 JINNAH ROAD ISLAM PURA LAHORE 101B GULBERG II LAHORE
42101-9404446-3
1,518,555
125,303
1,643,857
640,036
640,036
265
MOHSIN ABBAS
42201-7827248-1
13,569,591
3,815,699
17,385,290
7,754,042
7,754,042
266
JAWED
42201-0797543-9
MOHAMMAD
8,544,164
2,333,827
10,877,991
5,735,739
5,735,739
267
ABDUL RAUF
42104-1717594-7
MUHAMMAD HAJI DADO NOOR MUHAMMAD
1,807,775
649,859
2,457,634
1,087,499
1,087,499
268
MUHAMMAD AYYUB
42301-9716522-5
9,504,698
1,156,010
10,660,708
4,503,453
4,503,453
269 270
UMER WAHEED KHAN MOHAMMAD IQBAL
35202-6834611-3 35202-4847431-7
ABDUL WAHEED KHAN MUHAMMAD SHARIF
868,040 708,274
25,691 -
893,731 708,274
868,040 580,052
47,527 36,920
915,567 616,972
271
CABLES AND CONDUCTOR LIMITED
37-C/1, FAISAL TOWN, LAHORE. FACTORY ADDRESS: 1.6 KM OFF RAIWAND MANGA ROAD, ROSA, MAUZA BHAIL, DIST. KASUR.
(1) Muhammad Ibrahim (1) MUHAMMAD Khan, R/o , House 18- ISMAIL KHAN D-III, Model Town, Lahore. CNIC. 352022050323-3 (2) MUHAMMAD IBRAHIM KHAN (2) Muhammad Amir Khan, R/o House No. 335, Street 7, Cavalry (3) W/O Ground, Lahore Cantt, MUHAMMAD Lahore. CNIC. 35201- IBRAHIN KHAN 2473182-5. (3) Naziran Begum, R/o (4) MUHAMMAD House. 124-D, Model IBRAHIM KHAN Town, Lahore, CNIC. 35202-7521331-6 (4) Muhammad Imran Khan, R/o House No. 335, Street 7, Cavalry Ground, Lahore Cantt, Lahore. CNIC. 352011370877-1
112,399,438 145,648,936
258,048,374 112,399,438
149,388,111
261,787,549

Annexure-1
Sr. No.
Name
Address
Principal
272
COTTON ARTS (PVT) LIMITED
REGISTERED OFFICE AT P-18, TIKKA GALI (1) Ateeq Ahmad R/o NO. 3, MONTGOMERY BAZAR, FAISALABAD. House No. 121-A, Peoples Colony, Faisalabad. 331009241325-1 (2) Laeeq Ahmad R/o House No. 121-A, Peoples Colony, Faisalabad. 331004364680-7 (3) Razia Sultana R/o House No. 121-A, Peoples Colony, Faisalabad. 331007734758-4
41,146,580 17,664,173
58,810,753
1,808,028
1,808,028
(3) W/O SHEIKH MUHAMMAD YAQOOB
(4) Nafeez Ahmed R/o (4) SHEIKH MUHAMMAD House No. 121-A, YAQOOB Peoples Colony, Faisalabad. 331000905950-3 906,581,313 381,662,455 1,288,243,768 465,953,828 346,641,012 812,594,841
PATTERN OF SHAREHOLDERS
As on 31 December 2011
NO. OF SHAREHOLDERS
<-- HAVING SHARES--> FROM TO
SHARES HELD
PERCENTAGE
1253 2156 1335 2850 964 142 77 57 25 15 18 8 5 9 7 4 7 1 1 1 1 7 1 3 3 1 2 2 2 1 2 1 1 1 1 2 1 1 1 2 1 2 1 1 1 1 1 1 1 1 8982
1 101 501 1001 5001 10001 15001 20001 25001 30001 35001 40001 45001 50001 55001 60001 65001 70001 75001 80001 85001 95001 100001 110001 125001 130001 140001 145001 155001 170001 175001 180001 190001 210001 235001 245001 255001 295001 350001 455001 495001 500001 525001 710001 845001 910001 995001 1030001 2560001 3832335001
100 500 1000 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000 100000 105000 115000 130000 135000 145000 150000 160000 175000 180000 185000 195000 215000 240000 250000 260000 300000 355000 460000 500000 505000 530000 715000 850000 915000 1000000 1035000 2565000 3832340000
53087 686104 1077383 7240614 6055146 1771168 1357845 1308862 701657 482554 678666 345599 246855 468879 409474 246119 469337 75000 75817 80176 86975 694233 103045 337350 385400 134400 285000 295258 312100 175000 353691 180258 192522 215000 236158 497232 258132 300000 354048 917614 500000 1001842 530000 712208 850000 914570 998645 1031896 2562940 3832339162 3871585021
0.0014 0.0177 0.0278 0.1870 0.1564 0.0457 0.0351 0.0338 0.0181 0.0125 0.0175 0.0089 0.0064 0.0121 0.0106 0.0064 0.0121 0.0019 0.0020 0.0021 0.0022 0.0179 0.0027 0.0087 0.0100 0.0035 0.0074 0.0076 0.0081 0.0045 0.0091 0.0047 0.0050 0.0056 0.0061 0.0128 0.0067 0.0077 0.0091 0.0237 0.0129 0.0259 0.0137 0.0184 0.0220 0.0236 0.0258 0.0267 0.0662 98.9863 100.0000
CATEGORIES OF SHAREHOLDERS
AS OF 31 DECEMBER 2011
PARTICULARS SHARES HOLDERS SHAREHOLDING PERCENTAGE
DIRECTORS, CEO & CHILDREN ASSOCIATED COMPANIES NIT & ICP BANKS, DFI & NBFI INSURANCE COMPANIES MODARABAS & MUTUAL FUNDS GENERAL PUBLIC (LOCAL) GENERAL PUBLIC (FOREIGN) OTHERS FOREIGN COMPANIES
7 1 1 14 5 8 7536 1301 96 13 8982
7 3832339162 3250 3720937 105745 253812 25094974 4881177 4544179 641778 3871585021
0.0000 98.9863 0.0001 0.0961 0.0027 0.0066 0.6482 0.1261 0.1174 0.0166 100.0000
CONSOLIDATED DETAILS
A) SR. # 1 2 3 4 5 6 7 Directors, Chief Executive Officer, their spouse and minor children Name Mr. Christos A. Papadopoulos Mr. Mohsin Ali Nathani Mr. Andrew James Hardacre Mr. Raheel Ahmed Mr. Najam I. Chaudhri Mr. Shahid Zaki Mr. Parvez Ghias Total Associated Companies, Undertakings and Related Parties Standard Chartered Bank U.K. 3,832,339,162 98.99 Shares Held 1 530,001 1 1 1 1 1 530,007 % 0.00 0.01 0.00 0.00 0.00 0.00 0.00 0.01
B) 1
C) 1
NIT & ICP Investment Corporation of Pakistan (Non-CDC) 3,250 0.00
D) 1
Shareholders Holding 10% or More Standard Chartered Bank U.K. 3,832,339,162 98.99
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Company Secretary Standard Chartered Bank (Pakistan) LIimited P.O.Box No. 5556, I.I.Chundrigar Road, Karachi 74000, Pakistan
Fold here
Fold here
Fold here
Fold here
Fold here
Fold here
Form of Proxy
6TH ANNUAL GENERAL MEETING STANDARD CHARTERED BANK (PAKISTAN) LIMITED
I/We.... of..being member(s) of Standard Chartered Bank ( P a k i s t a n ) L i m i t e d h o l d i n g . O rd i n a r y s h a re s h e re b y a p p o i n t of..or failing him/her....of...who is/are also member(s) of Standard Chartered Bank (Pakistan) Limited as my/our Proxy in my/our absence to attend and vote for me/us and on my/our behalf at the Annual General Meeting of the Bank to be held on March 30, 2012 and/or any adjournment thereof.
Signed this _________________day of _______________________ 2012. Folio No. Signature on Rs. 5/Revenue Stamp WITNESSES: 1. Signature: Name: Address: CNIC No. Passport No.
2. Signature: Name: Address: CNIC No. Passport No.
Note 1. The Proxy Form should be deposited at the registered office of the Bank, as soon as possible but not later than 48 hours before the time of holding the meeting, failing which, Proxy Form will not be treated as valid. 2. No person shall act as proxy unless he/she is a member of the Bank.

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Standard Chartered Bank (Pakistan) Limited - Board of Directors Left to Right: Raheel Ahmed, Shahid Zaki, Najam I.

Audit Committee of the Board

Registrar and Share Transfer Office Auditors

Annual Report 2011

Annual Report 2011

STANDARD CHARTERED BANK (PAKISTAN) LIMITED NOTICE OF ANNUAL GENERAL MEETING

By Order of the Board

Asif Iqbal Alam Company Secretary

Karachi: March 5, 2012

Annual Report 2011

NOTICE OF ANNUAL GENERAL MEETING

Annual Report 2011

Annual Report 2011

Annual Report 2011

Mohsin Ali Nathani Chief Executive Karachi: March 05, 2012

Annual Report 2011

Management's Statements on Internal Controls and Risk Management Framework

Annual Report 2011

Management's Statements on Internal Controls and Risk Management Framework

Management's Statements on Internal Controls and Risk Management Framework

Annual Report 2011

Management's Statements on Internal Controls and Risk Management Framework

Mohsin Ali Nathani Chief Executive Officer

Report of SCBPL Shariah Advisor

Islamic Financing and Investment 2011

Diminishing Musharika 50.57%

Musharakah 0.32% Murabaha 19.30%

Ujrah (Saadiq Credit Card) 0.55%

Musawamah 0.04% Sukuk 29.22%

Report of SCBPL Shariah Advisor

Date: March 05, 2011 Karachi

KPMG Taseer Hadi & Co. Chartered Accountants Muhammad Taufiq

Annual Report 2011

Statement of Compliance with the Code of Corporate Governance

Annual Report 2011

By Order of the Board

Mohsin Ali Nathani Chief Executive Officer

Annual Report 2011

Six Years Key Financial Data

Standard Chartered Bank (Pakistan) Limited

Annual Report 2011

Standard Chartered Bank (Pakistan) Limited

Auditors' Report to the Members

Date: March 05, 2012 Karachi

KPMG Taseer Hadi & Co. Chartered Accountants Muhammad Taufiq

Annual Report 2011

Standard Chartered Bank (Pakistan) Limited

Un-Consolidated Statement of Financial Position

NET ASSETS REPRESENTED BY: Share capital Reserves Unappropriated profit 18 19

38,715,850 3,756,625 8,797,964 51,270,439 3,318,172 54,588,611

38,715,850 2,667,488 6,716,831 48,100,169 2,972,975 51,073,144

Surplus on revaluation of assets - net of deferred tax

CONTINGENCIES AND COMMITMENTS

Christos Papadopoulos Chairman

Mohsin Ali Nathani Chief Executive

Najam I. Chaudhri Director

Andrew J. Hardacre Director

Annual Report 2011

Standard Chartered Bank (Pakistan) Limited

Financial statements and notes