MCB Bank Limited & Subsidiary Companies

Consolidated Balance Sheet

As at December 31, 2008 Note Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments - net Advances - net Operating fixed assets Deferred tax assets - net Other assets - net Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loan Liabilities against assets subject to finance lease Deferred tax liabilities - net Other liabilities Net assets Represented by: Share capital Reserves Unappropriated profit Minority interest Surplus on revaluation of assets - net of tax 22 20 21 6,282,768 36,772,321 11,065,723 54,120,812 69 54,120,881 6,011,252 60,132,133 6,282,768 34,000,927 7,054,472 47,338,167 63 47,338,230 10,209,092 57,547,322 15 16 17 18 12 19 10,551,468 22,663,840 330,245,080 440,295 21,252,942 385,153,625 60,132,133 10,479,058 39,406,831 292,088,347 479,232 1,183,586 11,716,465 355,353,519 57,547,322 6 7 8 9 10 11 13 39,631,219 4,106,526 4,100,079 97,790,391 262,508,830 17,320,485 19,828,228 445,285,758 39,683,883 3,867,591 1,051,372 115,358,590 218,959,786 16,082,781 17,896,838 412,900,841 2008 2007 (Rupees in '000)

Contingencies and commitments

23

The annexed notes 1 to 47 and Annexures I to V form an integral part of these financial statements. The details of valuation of investments, impairment and impact on profit and loss account are given in note 9.8.

Difference _________________________ President and Chief Executive _______ Director _______ Director

_______ Director

MCB Bank Limited & Subsidiary Companies

Consolidated Profit and Loss Account
For the year ended December 31, 2008 Note 2007 2008 (Rupees in '000) 40,049,505 11,592,922 28,456,583 2,683,994 1,335,127 4,019,121 24,437,462 31,791,754 7,858,819 23,932,935 105,269 2,959,583 199 3,065,051 20,867,884

Mark-up / return / interest earned Mark-up / return / interest expensed Net mark-up / interest income Provision for diminution in the value of investments - net Provision against loans and advances - net Bad debts written off directly Net mark-up / interest income after provisions Non-mark-up / interest income Fee, commission and brokerage income Income earned as trustee to various funds Dividend income Income from dealing in foreign currencies Gain on sale of securities - net Unrealized loss on revaluation of investments classified as held for trading Other income - net Total non-mark-up / interest income Non-mark-up / interest expenses Administrative expenses Other provision / (reversal) - net Other charges Total non-mark-up / interest expenses Share of profit of associated undertaking Extra ordinary / unusual item Profit before taxation Taxation - Current year - Prior years - Deferred Share of tax of associated undertaking Profit after taxation Profit attribuatble to minority interest Profit attribuatble to ordinary share holders Unappropriated profit brought forward Transfer from surplus on revaluation of fixed assets - net of tax Profit available for appropriation Basic and diluted earnings per share - after tax

25 26

9.3 10.4.2 10.5.1

27 9.5 28

2,878,663 21,867 451,312 727,564 748,139 (99,531) 1,201,834 5,929,848 30,367,310 7,580,302 10,120 920,991 8,511,413 30,843 21,886,740 7,387,345 (865,344) 16,348 25,164 6,563,513 15,323,227 (12) 15,323,215 7,054,472 21,373 7,075,845 22,399,060 24.39

2,772,615 5,859 535,813 693,408 1,507,610 (3,329) 1,002,160 6,514,136 27,382,020 5,440,305 (3,743) 642,780 6,079,342 1,223,633 22,526,311 6,463,560 (1,294,586) 899,898 15,769 6,084,641 16,441,670 (11) 16,441,659 6,278,593 11,860 6,290,453 22,732,112 26.17

29 13.2 30 9.7

9.7 31

34

The annexed notes 1 to 47 and Annexures I to V form an integral part of these financial statements. The details of valuation of investments, impairment and impact on profit and loss account are given in note 9.8.

_________________________ President and Chief Executive

_______ Director

_______ Director

_______ Director

MCB Bank Limited & Subsidiary Companies

Consolidated Cash Flow Statement
For the year ended December 31, 2008 Note Cash flows from operating activities Profit before taxation Less: Dividend income Adjustments for non-cash charges Depreciation Amortization Provision against loans and advances - net Provision for diminution in the value of investments - net Provision / (reversal) for diminution in the value of other assets Bad debts written off directly Operating fixed assets written off Gain on disposal of fixed assets - net Deficit on revaluation of 'held for trading' securities 2008 2007 (Rupees in '000) 21,886,740 (482,155) 21,404,585 11.2 11.3 10.4.2 9.3 13.2 10.5.1 30 28 9.5 822,710 143,465 1,335,127 2,683,994 10,120 (36,855) 99,531 5,058,092 26,462,677 (3,048,707) (7,445) (44,884,171) (1,893,900) (49,834,223) 72,410 (16,742,991) 38,156,733 11,923,618 33,409,770 10,038,224 (7,922,663) 2,115,561 22,526,311 (1,759,446) 20,766,865 604,127 191,988 2,959,583 105,269 (3,743) 199 12,102 (13,136) 3,329 3,859,718 24,626,583 20,030,428 (519,089) (23,682,886) (6,834,006) (11,005,553) 3,389,379 15,463,355 34,903,237 755,878 54,511,849 68,132,879 (6,188,617) 61,944,262

(Increase) / decrease in operating assets Lendings to financial institutions Net investments in 'held for trading' securities Advances - net Other assets - net Increase / (decrease) in operating liabilities Bills payable Borrowings Deposits Other liabilities

Income tax paid Net cash flows from operating activities Cash flows from investing activities Net investments in 'available for sale' securities Net investments in 'held to maturity' securities Dividends received Investments in operating fixed assets Sale proceeds of property and equipment disposed off Net cash flows from investing activities Cash flows from financing activities Redemption of subordinated loan Dividend paid Net cash flows from financing activities Exchange differences on translation of the net investment in foreign branches Increase in cash and cash equivalents Cash and cash equivalents at beginning of the year Effects of exchange rate changes on cash and cash equivalents Cash and cash equivalents at end of the year 35

15,058,126 (5,550,843) 544,861 (2,160,582) 258,627 8,150,189

(52,959,630) 3,564,123 619,907 (2,960,463) 62,419 (51,673,644)

(479,232) (9,834,181) (10,313,413) 233,934 186,271 45,467,614 (1,916,140) 43,551,474 43,737,745

(1,118,208) (4,728,496) (5,846,704) 11,925 4,435,839 39,420,289 (304,654) 39,115,635 43,551,474

The annexed notes 1 to 47 and Annexures I to V form an integral part of these financial statements.

__________________________ President and Chief Executive

________ Director

________ Director

________ Director

MCB Bank Limited & Subsidiary Companies

Consolidated Statement of Changes in Equity
For the year ended December 31, 2008

Attributable to shareholders of the bank Share capital Capital reserves Share Exchange premium translation reserve Revenue reserves General Unappropriated reserve profit Subtotal Minority Interest Total

Statutory reserve

------------------------------------------------------------------------- (Rupees in '000) -----------------------------------------------------------------------Balance as at December 31, 2006 Changes in equity for 2007 Profit after taxation for the year ended December 31, 2007 Profit attributable to minority interest Profit after taxation for the year ended December 31, 2007 attributable to ordinary shareholders of the group 16,441,670 (11) 16,441,659 16,441,670 (11) 16,441,659 11 11 16,441,670 16,441,670 5,463,276 9,702,528 (53,617) 5,213,535 9,800,000 6,278,593 36,404,315 52 36,404,367

Transferred from surplus on revaluation of fixed assets to unappropriated profit - net of tax Exchange differences on translation of net investment in foreign branches Net income recognized directly in equity Total recognized income and expense for the year ended December 31, 2007 Transferred to general reserve Transferred to statutory reserve Issue of bonus shares - December 2006 Final cash dividend - December 2006 Interim cash dividend - March 2007 Interim cash dividend - June 2007 Interim cash dividend - September 2007 Balance as at December 31, 2007 11,925 11,925 11,860 11,925 23,785 11,925 23,785 11,860 11,860 11,860

819,492 6,282,768

9,702,528

11,925 (41,692)

1,526,556 6,740,091

7,800,000 17,600,000

16,453,519 (7,800,000) (1,526,556) (819,492) (819,492) (1,570,692) (1,570,704) (1,570,704) 7,054,472

16,465,444 (819,492) (1,570,692) (1,570,704) (1,570,704) 47,338,167 -

11

16,465,455 (819,492) (1,570,692) (1,570,704) (1,570,704)

63

47,338,230

Changes in equity for 2008 Profit after taxation for the year ended December 31, 2007 Profit attributable to minority interest Profit after taxation for the year ended December 31, 2008 attributable to ordinary shareholders of the group Transferred from surplus on revaluation of fixed assets to unappropriated profit - net of tax Exchange differences on translation of net investment in foreign branches Net income recognized directly in equity Total recognized income and expense for the year ended December 31, 2008 Transferred to statutory reserve Transferred to general reserve Dividend attribuatble to minority shareholders Final cash dividend - December 2007 Interim cash dividend - March 2008 Interim cash dividend - June 2008 Interim cash dividend - September 2008 Balance as at December 31, 2008 15,323,227 (12) 15,323,215 15,323,227 (12) 15,323,215 12 12 15,323,227 15,323,227

21,373

21,373

21,373

233,934 233,934

21,373

233,934 255,307

233,934 255,307

6,282,768

9,702,528

233,934 192,242

1,537,460 8,277,551

1,000,000 18,600,000

15,344,588 (1,537,460) (1,000,000) (3,141,384) (1,884,831) (1,884,831) (1,884,831) 11,065,723

15,578,522 (3,141,384) (1,884,831) (1,884,831) (1,884,831) 54,120,812 -

12

15,578,534 -

(6)

(6) (3,141,384) (1,884,831) (1,884,831) (1,884,831)

69

54,120,881

For details of dividend declaration and appropriations, refer note 46 to these financial statements. The annexed notes 1 to 47 and Annexures I to V form an integral part of these financial statements.

_________________________ President and Chief Executive

_______ Director

_______ Director

_______ Director

MCB Bank Limited & Subsidiary Companies

Notes to the Consolidated Financial Statements
For the year ended December 31, 2008

1. THE GROUP AND ITS OPERATIONS The "Group" consists of: Holding company - MCB Bank Limited Percentage holding of MCB Bank Limited Subsidiary companies - Muslim Commercial Financial Services (Private) Limited - MNET Services (Private) Limited - MCB Trade Services Limited - MCB Asset Management Company Limited MCB Bank Limited (holding company) MCB Bank Limited (the 'Bank') is a banking company incorporated in Pakistan and is engaged in commercial banking and related services. The Bank's ordinary shares are listed on all the stock exchanges in Pakistan whereas its Global Depository Receipts (GDRs) representing two ordinary shares (2007: four ordinary shares) are traded on the International Order Book (IOB) system of the London Stock Exchange. The Bank's registered office and principal office are situated at MCB Building, Jinnah Avenue, Islamabad and MCB -15 Main Gulberg, Lahore respectively. The Bank operates 1040 branches including 11 Islamic banking branches (2007: 1020 branches including 8 Islamic banking branches) within Pakistan and 7 branches (2007: 6 branches) outside the country (including the Karachi Export Processing Zone branch). During the year, Malayan Banking Berhad (Maybank) of Malaysia acquired 125,655,369 shares representing 20% stake in the Bank through Mayban International Trust (Labuan) Berhad. Muslim Commercial Financial Services (Private) Limited (subsidiary company) The company was incorporated on February 12, 1992 under the Companies Ordinance, 1984 as a private limited company. The principal object of the company is to float, administer and manage modaraba funds and modarabas under Modaraba Companies & Modaraba (Floatation and Control) Ordinance 1980. The company's registered office is situated at 16th Floor, MCB Tower, I.I. Chundrigar Road, Karachi. The company also acts as a trustee of certain mutual funds. % 99.999 99.950 100.000 99.990

MNET Services (Private) Limited (subsidiary company) MNET Services (Private) Limited is a private limited company incorporated in Pakistan under the Companies Ordinance, 1984 on September 7, 2001. The company's registered office and principal place of business are situated at MCB Building, F-6 / G-6, Jinnah Avenue, Islamabad and Sheikh Sultan Trust Building, Beaumount Road, Karachi respectively. The core objective of the company is to provide services in Information Technology and to develop computer software and other data processing equipment for planning, designing, management and execution of all types of financial, personal, organizational and institutional activities. MCB Trade Services Limited (subsidiary company) The company was incorporated under the laws of Hong Kong on February 25, 2005. The registered office of the company is located at 28 / F, BEA Harbour View Centre 56 Gloucester Road, Wan Chai, Hong Kong. The principal activity of the company is to provide agency services. MCB Asset Management Company Limited (subsidiary company) The company was incorporated in Pakistan under the Companies Ordinance 1984 on September 14, 2005 as a public limited company. The registered office and principal place of business of the company is located at 8th Floor, Technocity, Corporate Tower, Hasrat Mohani Road, Karachi. The company is registered as an asset management company under the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 to carry on the business of an asset management company under the said rules. The principal activity of the company includes asset management, investment advisory, portfolio management, equity research and underwriting. 2. BASIS OF PRESENTATION 2.1 The consolidated financial statements include the financial statements of MCB Bank Limited and its subsidiary companies and associates. In accordance with the directives of the Federal Government regarding the shifting of the banking system to Islamic modes, the State Bank of Pakistan has issued various circulars from time to time. Permissible forms of trade-related modes of financing include purchase of goods by banks from their customers and immediate resale to them at appropriate mark-up in price on deferred payment basis. The purchases and sales arising under these arrangements are not reflected in these financial statements as such but are restricted to the amount of facility actually utilized and the appropriate portion of mark-up thereon. The financial results of the Islamic Banking branches have been consolidated in these financial statements for reporting purposes, after eliminating material inter-branch transactions / balances. Key financial figures of the Islamic Banking branches are disclosed in Annexure II to these financial statements. For the purpose of translation to US Dollar, the rates of Rs. 79.0985 and Rs. 62.000 per US Dollar and Rs. 0.700 and Rs.0.5708 per SLR have been used for December 31, 2008 and December 31, 2007 respectively.

2.2

2.3

2.4

3. STATEMENT OF COMPLIANCE 3.1 These financial statements have been prepared in accordance with the 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 as are notified under the Companies Ordinance, 1984, provisions of and directives issued under the Companies Ordinance, 1984 and Banking Companies Ordinance, 1962. In case requirements differ, the provisions of directives given in Companies Ordinance, 1984 and Banking Companies Ordinance, 1962 shall prevail. The State Bank of Pakistan has deferred the applicability of International Accounting Standard (IAS) 39, 'Financial Instruments: Recognition and Measurement' and International Accounting Standard (IAS) 40, 'Investment Property' for Banking Companies through BSD Circular No. 10 dated August 26, 2002. Accordingly, the requirements of these standards have not been considered in the preparation of these financial statements. However, investments have been classified and valued in accordance with the requirements prescribed by the State Bank of Pakistan through various circulars. During 2005, Securities and Exchange Commission of Pakistan notified the Islamic Financial Accounting Standard - 1 issued by Institute of Chartered Accountants of Pakistan relating to accounting for Murabaha transactions undertaken by a bank, effective for financial periods beginning on or after January 01, 2007. The standard has not been adopted by stand-alone Islamic branches of conventional banks pending resolution of certain issues, e.g., invoicing of goods, recording of inventories, concurrent application with other approved accounting standards in place for conventional banks, etc. Pakistan Bank's Association has taken up the matter with the State Bank of Pakistan. 3.2 Standards, amendments and interpretations to published approved accounting standards effective in current year During the year ended December 31, 2008, IFRIC 14 IAS 19 The Limit on Defined Benefit Asset, Minimum Funding Requirements and their interaction is effective from Groups annual periods beginning on or after January 01, 2008. IFRIC 14 provides guidance on assessing the limit in IAS 19 'Employee Benefits 'on the amount of the surplus that can be recognized as an asset. It also explains how the pension asset or liability may be affected by a statutory or contractual minimum funding requirement. Group has considered the implication of interpretation on the surplus that can be recognized as an asset. There are other new standards and interpretations to published approved accounting standards that are mandatory for accounting periods beginning on or after January 01, 2008 but are considered not to be relevant or do not have any significant impact on the Group's financial statements. 3.3 Standards, amendments and interpretations to published approved accounting standards that are relevant but not yet effective The following standards, amendments and interpretations to published approved accounting standards are mandatory for the Group's accounting periods beginning on or after January 01, 2009:

IFRS 3 (Revised), Business combinations (effective from July 01, 2009). The revised standard continues to apply the acquisition method to business combinations, with some significant changes. For example, all payments to purchase a business are to be recorded at fair value at the acquisition date, with contingent payments classified as debt subsequently re-measured through the income statement. There is a choice on an acquisition-by-acquisition basis to measure the non-controlling interest in the acquiree either at fair vale or at the non-controlling interests proportionate share of the acquirees net assets. All acquisition-related costs should be expensed. The Group will apply IFRS 3 (Revised) prospectively to all business combinations from January 01, 2010. IFRS 7 "Financial Instruments: Disclosures" (effective for annual periods beginning on or after April 28, 2008) supersedes IAS 30 "Disclosures in the Financial Statements of Groups and Similar Financial Institutions" and the disclosure requirements of IAS 32 "Financial Instruments: Presentation". The application of the standard is not expected to have significant impact on the Group's financial statements other than increase in disclosures. IFRS 8 "Operating Segments" (effective for annual periods beginning on or after January 01, 2009) introduces the management approach to segment reporting. IFRS 8 will require a change in the presentation and disclosure of segment information based on the internal reports that are regularly reviewed by the Groups chief operating decision maker in order to assess each segments performance and to allocate resources to them. Currently the Group presents segment information in respect of its business and geographical segments. This standard will have no effect on the Groups reported total profit or loss or equity. IAS 1 Presentation of Financial Statements effective for annual periods beginning on or after January 01, 2009 revises the existing IAS 1 and requires apart from changing the names of certain components of financial statements, presentation of transactions with owners in statement of changes in equity and with non-owners in comprehensive Income Statement. Adoption of the above standard will only effect the presentation of financial statements. IAS 27 (Revised), Consolidated and Separate Financial Statements, (effective from July 01, 2009). The revised standard requires the effects of all transactions with non-controlling interests to be recorded in equity if there is no change in control and these transactions will no longer result in goodwill or gains and losses. The standard also specifies the accounting when control is lost. Any remaining interest in the entity is re-measured to fair value, and a gain or loss is recognised in profit or loss. The Group will apply IAS 27 (Revised) prospectively to transactions with non-controlling interests from January 01, 2010.

IFAS 2 Ijarah effective for annual periods beginning on or after January 01, 2009 will result in following changes: Assets underlying ijarah financing will be recorded as operating fixed assets separately from the assets in Groups own use. These assets will be carried at cost less accumulated depreciation and impairment, if any. Rentals receivable from ijarah financing during the year will be taken to profit and loss account.

There are other amendments resulting from annual improvement project initiated by International Accounting Standards Board in May 2008, specifically in IAS 1 "Presentation of Financial Statements", IAS 19 "Employee Benefits", IAS 28 "Investment in Associates", IAS 36 "Impairment of Assets" and IAS 38 "Intangible Assets" that are considered relevant to the Groups financial statements. The management is in the process of evaluating the impact of these changes on the Group's financial statements. 3.4 Standards, ammendements and interpretations to published approved accounting standards that are not relevant and not yet effective

Standard or Interpretation IFRS 2 "Share-based Payments" IFRS 5 "Non-current Assets Held for Sale and Discontinued Operations" IAS 16 "Property, Plant and Equipment" IAS 20 "Accounting for Government Grants and Disclosure of Government Assistance" IAS 23 "Borrowing Costs" IAS 29 "Financial Reporting in Hyperinflationary Economies" IAS 31 "Interests in Joint Ventures" IAS 32 "Financial Instruments: Presentation" IAS 41 "Agriculture" IFRIC 13 "Customer Loyalty Programmes" IFRIC 15 "Agreements for the Construction of Real Estate" IFRIC 16 "Hedges of a Net Investment in a Foreign Operation" IFRIC 17 "Distributions of Non-cash Assets to Owners" 4. BASIS OF MEASUREMENT 4.1

Effective date (accounting periods beginning on or after) January 01, 2009 July 01, 2009 January 01, 2009

January 01, 2009 January 01, 2009 January 01, 2009 January 01, 2009 January 01, 2009 January 01, 2009 July 01, 2008 January 01, 2009 October 01, 2008 July 01, 2009

These financial statements have been prepared under the historical cost convention except that certain fixed assets are stated at revalued amounts and certain investments, commitments in respect of certain forward exchange contracts and derivative financial instruments have been marked to market and are carried at fair value. The financial statements are presented in Pak Rupees, which is the Group's functional and presentation currency. The amounts are rounded to nearest thousand.

4.2

4.3

Critical accounting estimates and judgments The preparation of financial statements in conformity with the approved accounting standards requires the use of certain critical accounting estimates. It also requires the management to exercise its judgment in the process of applying the Group's accounting policies. Estimates and judgments are continually evaluated and are based on historical experiences, including expectations of future events that are believed to be reasonable under the circumstances. The areas where various assumptions and estimates are significant to the Group's financial statements or where judgment was exercised in the application of accounting policies are as follows: a) Classification of investments In classifying investments as 'held for trading', the Group has determined securities which are acquired with an intention to trade by taking advantage of short term market / interest rate movements and are to be sold within 90 days. In classifying investments as 'held to maturity', the Group follows the guidance provided in SBP circulars on classifying non-derivative financial assets with fixed or determinable payments and fixed maturity. In making this judgment, the Group evaluates its intention and ability to hold such investment to maturity. The investments which are not classified as 'held for trading' or 'held to maturity' are classified as 'available for sale'.

b) Provision against advances The Group reviews its loan portfolio to assess amount of non-performing advances and provision required there against on regular basis. While assessing this requirement various factors including the delinquency in the account, financial position of the borrowers and the requirements of the Prudential Regulations are considered. The amount of general provision is determined in accordance with the relevant regulations and management's judgment as explained in notes 10.4.3 and 10.4.4. c) Impairment of 'available for sale' equity investments The Group determines that 'available for sale' equity investments are impaired when there has been a significant or prolonged decline in the fair value below its cost. The determination of what is significant or prolonged requires judgment. In making this judgment, the Group evaluates among other factors, the normal volatility in share price. In addition the impairment may be appropriate when there is an evidence of deterioration in the financial health of the invested industry and sector performance, changes in technology and operational/financial cash flows. d) Taxation In making the estimates for income taxes currently payable by the Group, the management considers the current income tax laws and the decisions of appellate authorities on certain issues in the past.

e) Fair value of derivatives The fair values of derivatives which are not quoted in active markets are determined by using valuation techniques. The valuation techniques take into account the relevant interest rates at the balance sheet date and the rates contracted. f) Depreciation, amortization and revaluation of operating fixed assets In making estimates of the depreciation / amortization method, the management uses the method which reflects the pattern in which economic benefits are expected to be consumed by the Group. The method applied is reviewed at each financial year end and if there is a change in the expected pattern of consumption of the future economic benefits embodied in the assets, the method is changed to reflect the changed pattern. Such change is accounted for as change in accounting estimates in accordance with International Accounting Standard (IAS) 8 "Accounting Policies, Changes in Accounting Estimates and Errors". Further, the Group estimates the revalued amount of land and buildings on a regular basis. The estimates are based on valuations carried out by independent professional valuers under the market conditions. g) Staff retirement benefits Certain actuarial assumptions have been adopted as disclosed in these financial statements (note 37) for the actuarial valuation of staff retirement benefit plans. Actuarial assumptions are entity's best estimates of the variables that will determine the ultimate cost of providing post employment benefits. Changes in these assumptions in future years may affect the liability / asset under these plans in those years. 5. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 5.1 Basis of consolidation a) The consolidated financial statements include the financial statements of MCB Bank Limited and its subsidiary companies and share of the profit / reserves of an associate accounted for under the equity basis of accounting. b) Subsidiaries are all entities over which the Group has the power to govern the financial and operating policies accompanying a shareholding of more than one half of the voting rights. The existence and effect of potential voting rights that are currently exercisable are considered when assessing whether the Group controls another entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date when control ceases / the subsidiaries disposed off. The assets and liabilities of subsidiary companies have been consolidated on a line by line basis based on the financial statements as at December 31, 2008 and the carrying value of investments held by the Bank is eliminated against the subsidiaries' shareholders' equity in these consolidated financial statements. Material intra-Group balances and transactions have been eliminated.

c) Associates are all entities over which the Group has significant influence but not control. Investments in associates are accounted for by the equity method of accounting and are initially recognised at cost, thereafter for the post-acquisition change in the Group's share of net assets of the associate, the cumulative post-acquisition movements are adjusted in the carrying amount of the investment. Accounting policies of the associate have been changed where necessary to ensure consistency with the policies adopted by the Group. The Group's share in an associate has been accounted for on the basis of the financial statements for the year ended December 31, 2008. d) Minority interest is that part of the net results of operations and of net assets of subsidiary companies attributable to interests which are not owned by the Group. 5.2 Investments The Group classifies its investments as follows: a) Held for trading These are securities, which are either acquired for generating profit from short-term fluctuations in market prices, interest rate movements, dealers margin or are securities included in a portfolio in which a pattern of short-term profit taking exists. b) Held to maturity These are securities with fixed or determinable payments and fixed maturity in respect of which the Group has the positive intent and ability to hold to maturity. c) Available for sale These are investments, other than those in subsidiaries and associates, that do not fall under the 'held for trading' or 'held to maturity' categories. Investments are initially recognized at cost which in case of investments other than 'held for trading' include transaction costs associated with the investment. All purchases and sales of investments that require delivery within the time frame established by regulation or market convention are recognized at the trade date. Trade date is the date on which the Group commits to purchase or sell the investment. In accordance with the requirements of the State Bank of Pakistan, quoted securities, other than those classified as 'held to maturity' and investments in associates are subsequently re-measured to market value. Surplus / (deficit) arising on revaluation of quoted securities which are classified as 'available for sale', is taken to a separate account which is shown in the balance sheet below equity. Surplus / (deficit) arising on revaluation of quoted securities which are classified as 'held for trading', is taken to the profit and loss account currently.

Unquoted equity securities are valued at the lower of cost and break-up value. Break-up value of equity securities is calculated with reference to the net assets of the investee company as per the latest available audited financial statements. Investments classified as 'held to maturity' are carried at amortized cost. Investments in subsidiaries and investments in associates are carried at cost less impairment, if any. Provision for impairment in the values of securities (except debentures, participation term certificates and term finance certificates) is made currently. Provisions for impairment in value of debentures, participation term certificates and term finance certificates are made as per the requirements of the Prudential Regulations issued by the State Bank of Pakistan. Goodwill represents the excess of the cost of an acquisition over the fair value of the Group's share of the net identifiable assets of the acquired associate at the date of acquisition. Goodwill on acquisitions of associates is included in 'investments in associates'. Goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. Gains and losses on the disposal of an associate include the carrying amount of goodwill relating to the associate sold. 5.3 Sale and repurchase agreements Securities sold subject to a repurchase agreement (repo) are retained in the financial statements as investments and the counter party liability is included in borrowings. Securities purchased under an agreement to resell (reverse repo) are not recognized in the financial statements as investments and the amount extended to the counter party is included in lendings to financial institutions. The difference between the purchase / sale and re-sale / re-purchase price is recognized as mark-up income / expense on a time proportion basis, as the case may be. 5.4 Advances Advances are stated net of specific and general provisions. Specific provision is determined on the basis of the Prudential Regulations and other directives issued by the State Bank of Pakistan (SBP) and charged to the profit and loss account. Provisions comprise of provisions against identified losses and provisions against unidentified losses. Provisions against unidentified losses include general provision against consumer loans made in accordance with the requirements of the Prudential Regulations issued by SBP and provision based on historical loss experience on advances. Advances are written off when there is no realistic prospect of recovery. Leases where the Group transfers substantially all the risks and rewards incidental to ownership of an asset to the lessee are classified as financial leases. A receivable is recognized at an amount equal to the present value of the lease payments including any guaranteed residual value. Finance lease receivables are included in advances to the customers. 5.5 Operating fixed assets and depreciation Property and equipment, other than land carrying value of which is not amortized, are stated at cost or revalued amounts less accumulated depreciation and accumulated impairment losses ( if any). Land is carried at revalued amount. Capital work-in-progress is stated at cost. Cost of property and equipment of foreign operations includes exchange differences arising on currency translation at year-end rates. Depreciation on all operating fixed assets is charged using the diminishing balance method expect for vehicles, computers, carpets and buildings which are depreciated using the straight line method in accordance with the rates specified in note 11.2 to these financial statements and after taking into account residual value, if any. The residual values, useful lives and depreciation methods are reviewed and adjusted, if appropriate, at each balance sheet date.

Depreciation on additions is charged from the month the assets are available for use while no depreciation is charged in the month in which the assets are disposed off. Surplus on revaluation of land and buildings is credited to the surplus on revaluation account. Revaluation is carried out with sufficient regularity to ensure that the carrying amount of assets does not differ materially from the fair value. To the extent of the incremental depreciation charged on the revalued assets, the related surplus on revaluation of land and buildings (net of deferred taxation) is transferred directly to unappropriated profit. Gains / losses on sale of property and equipment are credited / charged to the profit and loss account currently, except that the related surplus on revaluation of land and buildings (net of deferred taxation) is transferred directly to unappropriated profit. Subsequent costs are included in the asset's carrying amount or are recognized 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 are charged to the profit and loss account. 5.6 Intangible assets Intangible assets are stated at cost less accumulated amortization and accumulated impairment losses, if any. Intangible assets are amortized from the month when these assets are available for use, using the straight line method, whereby the cost of the intangible assets are amortized over its estimated useful lives over which economic benefits are expected to flow to the Group. The useful lives are reviewed and adjusted, if appropriate, at each balance sheet date. 5.7 Impairment The carrying amount of assets are reviewed at each balance sheet date for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be recoverable. If such indication exists, and where the carrying value exceeds the estimated recoverable amount, assets are written down to their recoverable amounts. The resulting impairment loss is taken to the profit and loss account except for impairment loss on revalued assets, which is adjusted against the related revaluation surplus to the extent that the impairment loss does not exceed the surplus on revaluation of that asset. 5.8 Staff retirement benefits MCB Bank Limited (holding company) The Bank operates the following staff retirement benefits for its employees: a) For clerical / non-clerical staff who did not opt for the new scheme, the Bank operates the following:

an approved contributory provident fund; an approved gratuity scheme; and a contributory benevolent scheme

b) For clerical / non-clerical staff who joined the Bank after the introduction of the new scheme and for others who opted for the new scheme introduced in 1975, the Bank operates the following: an approved non-contributory provident fund introduced in lieu of the contributory provident fund; an approved pension fund; and contributory benevolent scheme

c) For officers who joined the Bank after the introduction of the new scheme and for others who opted for the new scheme introduced in 1977, the Bank operates the following: an approved non-contributory provident fund introduced in lieu of the contributory provident fund; and an approved pension fund.

However, the management has replaced the pension benefits for employees in the officer category with a contributory provident fund for services rendered after December 31, 2003. d) For executives and officers who joined the Bank on or after January 01, 2000 the Bank operates an approved contributory provident fund. e) Post retirement medical benefits to entitled employees. Annual contributions towards the defined benefit plans and schemes are made on the basis of actuarial advice using the projected unit credit method. The above benefits are payable to staff at the time of separation from the Bank's services subject to the completion of qualifying period of service. The net cumulative actuarial gains / losses at each balance sheet date are recognized equally over a period of three years or the expected remaining average working lives of employees, whichever is lower. Past service cost resulting from changes to defined benefit plans to the extent the benefits are already vested is recognized immediately and the remaining unrecognized past service cost is recognized as an expense on a straight line basis over the average period until the benefits become vested. MNET Services (Private) Limited (subsidiary company) The company operates an unfunded gratuity scheme for its eligible employees. Provision is made annually on the basis of the last drawn basic salaries of eligible employees and the number of completed years of service. 5.9 Employees' compensated absences MCB Bank Limited (holding company) Liability in respect of employees' compensated absences is accounted for in the year in which these are earned on the basis of actuarial valuation carried out using the Projected Unit Credit Method. Actuarial gains or losses if any, are recognized immediately.

5.10

Taxation Current Provision for current taxation is based on taxable income at the current rates of taxation after taking into consideration available tax credits and rebates. The charge for current tax also includes adjustments where considered necessary, relating to prior years which arise from assessments framed / finalized during the year. Deferred Deferred tax is recognised using the balance sheet liability method on all major temporary differences between the amounts attributed to assets and liabilities for financial reporting purposes and amounts used for taxation purposes. The Group records deferred tax assets / liabilities using the tax rates, enacted or substantively enacted by the balance sheet date expected to be applicable at the time of its reversal. 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 reduced to the extent that it is no longer probable that the related tax benefit will be realised. The Group also recognises deferred tax asset / liability on deficit / surplus on revaluation of securities and deferred tax liability on surplus on revaluation of fixed assets which is adjusted against the related deficit / surplus in accordance with the requirements of International Accounting Standard (IAS) 12, 'Income Taxes'. Deferred tax liability is not recognized in respect of taxable temporary differences associated with exchange translation reserves of foreign operations, where the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

5.11

Provisions Provisions are recognized when the Group has a legal or constructive obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be made. Provisions are reviewed at each balance sheet date and are adjusted to reflect the current best estimates.

5.12 5.12.1

Foreign currencies Foreign currency transactions Transactions in foreign currencies (other than the results of foreign operations discussed in note 5.12.2) are translated to Rupees at the foreign exchange rates ruling on the transaction date. Monetary assets and liabilities in foreign currencies are expressed in Rupee terms at the rates of exchange prevailing at the balance sheet date. Foreign bills purchased and forward foreign exchange contracts other than those relating to foreign currency deposits are valued at the rates applicable to their respective maturities.

5.12.2

Foreign operations The assets and liabilities of foreign branches and subsidiary are translated to Rupees at exchange rates prevailing at the balance sheet date. The results of foreign operations are translated to Rupees at the average rate of exchange for the year.

5.12.3

Translation gains and losses Translation gains and losses are included in the profit and loss account, except those arising on the translation of the Group's net investment in foreign branches and subsidiary, which are taken to the capital reserve (exchange translation reserve).

5.12.4

Commitments Commitments for outstanding forward foreign exchange contracts are disclosed in these financial statements at committed amounts. Contingent liabilities / commitments for letters of credit and letters of guarantee denominated in foreign currencies are expressed in Rupee terms at the rates of exchange ruling on the balance sheet date.

5.13

Revenue recognition Mark-up / interest on advances and returns on investments are recognized on a time proportion basis using the effective interest method except that mark-up / interest on non-performing advances and investments is recognized on a receipt basis, in accordance with the requirements of the Prudential Regulations issued by the State Bank of Pakistan (SBP) or as permitted by the regulations of the overseas regulatory authorities of the countries where the branches and subsidaries operate.

Financing method is used in accounting for income from lease financing. Under this method, the unearned lease income (excess of the sum of total lease rentals and estimated residual value over the cost of leased assets) is deferred and taken to income over the term of the lease period so as to produce a constant periodic rate of return on the outstanding net investment in lease. Gains / losses on termination of lease contracts are recognized as income when these are realized. Unrealized lease income is held in suspense account, where necessary, in accordance with the requirements of SBP or overseas regulatory authorities of the country where the foreign branches and subsidiaries of the Group operate. Premium on foreign currency options and commission income is recognized on a time proportion basis. Dividend income is recognized when the Group's right to receive dividend is established. Gain / loss on sale of investments is credited / charged to profit and loss account currently. Outsourcing and networking service revenue is recognized on an accrual basis. Revenue for acting as trustee is recognized on net asset value (NAV) of respective funds. Commission income is recognized at the time of sale of units by the Asset Management Company.

5.14

Operating leases Operating lease rentals are recorded in profit and loss account on a time proportion basis over the term of the lease arrangements.

5.15

Cash and cash equivalents Cash and cash equivalents include cash and balances with treasury banks and balances with other banks in current and deposit accounts.

5.16 5.16.1

Financial instruments Financial assets and financial liabilities Financial instruments carried on the balance sheet include cash and balances with treasury banks, balances with other banks, lendings to financial institutions, investments (excluding investment in associates), advances, other assets, bills payable, borrowings, deposits and other liabilities. The particular recognition methods adopted for significant financial assets and financial liabilities are disclosed in the individual policy statements associated with these assets and liabilities.

5.16.2

Derivative financial instruments Derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at their fair value using valuation techniques. All derivative financial instruments are carried as assets when the fair value is positive and liability when fair value is negative. Any change in the fair value of derivative financial instruments is taken to the profit and loss account currently.

5.16.3

Off setting Financial assets and financial liabilities are set off and the net amount is reported in the financial statements when there is a legally enforceable right to set off and the Group intends either to settle on a net basis, or to realize the assets and settle the liabilities, simultaneously.

5.17

Share issuance cost Share issuance cost directly attributable to issuance of shares, is recognized as deduction from the share premium account.

5.18

Segment reporting A segment is a distinguishable component of the Group that is engaged 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 Group's primary format of reporting is based on business segments.

5.18.1

Business segment Corporate Finance Corporate Finance includes underwriting, securitization, investment banking, syndications, IPO related activities (excluding investments) and secondary private placements.

Trading and Sales It includes fixed income, equity, foreign exchange commodities, lendings to financial institutions and brokerage debt. Retail and Consumer Banking It includes retail lending and deposits, banking services, private lending and deposits, banking services and retail offered to its retail customers and small and medium enterprises. Commercial Banking It includes project finance, export finance, trade finance, leasing, lending, guarantees and bills of exchange relating to its corporate customers. Asset Management It includes asset management, investment advisory, portfolio management and equity research. 5.18.2 Geographical segments The Group operates in three geographic regions being: 5.19 Pakistan Asia Pacific (including South Asia) Middle East

Dividend distribution and appropriation Dividends (including bonus dividend) and other appropriations (except appropriations which are required by law) are recognized in the period in which these are approved. Note 2007 2008 (Rupees in '000)

6. CASH AND BALANCES WITH TREASURY BANKS In hand - local currency In hand - foreign currencies In transit - local currency With State Bank of Pakistan (SBP) in: Local currency current account Foreign currency deposit account With other central banks in foreign currency current account With National Bank of Pakistan in local currency current account 6.2 6.3 6.2 19,038,530 2,862,881 214,910 6,133,306 39,631,219 23,204,296 1,068,318 244,441 3,705,014 39,683,883 6.1 10,066,021 142,188 1,173,383 9,351,207 962,498 1,148,109

6.1 6.2

This includes national prize bonds amounting to Rs. 59.382 million (2007: Rs. 91.885 million). Deposits with SBP are maintained to comply with their requirements issued from time to time. Deposits with other central banks are maintained to meet their minimum cash reserves and capital requirements pertaining to the foreign branches of the Bank. These include balance of Rs.1,950.742 million (2007: Rs. 534.159 million) which carry interest rate of 0.90 % per annum (2007: 4.24% per annum). Note 2008 2007

6.3

(Rupees in '000) 7. BALANCES WITH OTHER BANKS Inside Pakistan - current account - deposit account Outside Pakistan - current account - deposit account 7.1 3,347,089 696,011 4,106,526 7.1 3,234,443 571,813 3,867,591 63,426 1,263 60,072

Balances with other banks outside Pakistan in deposit account carry interest at the rate of 1.20% per annum (2007: 4.24% to 6.67% per annum). Note 2008 2007

(Rupees in '000) 8. LENDINGS TO FINANCIAL INSTITUTIONS

Call money lendings Repurchase agreement lendings

8.2 8.3

1,700,000 2,400,079 4,100,079

1,051,372 1,051,372

8.1

Particulars of lendings In local currency In foreign currencies 4,093,079 7,000 4,100,079 1,000,000 51,372 1,051,372

8.2.

These carry mark-up rates ranging from 15.75% to 21% per annum (2007: 9.65% to 12.19% per annum) and are due to mature latest by January 2009.

8.3 Securities held as collateral against lendings to financial institutions 2008 Held by group Further given as Total Held by group 2007 Further given as

Total

collateral collateral -------------------------------------(Rupees in '000)------------------------------------Market Treasury Bills Pakistan Investment Bonds 2,024,601 275,946 2,300,547 99,532 99,532 2,124,133 275,946 2,400,079 -

Market value of securities held as collateral against lendings to financial institutions as at December 31, 2008 amounted to Rs. 2,408.610 million (2007: Rs. Nil). These carry markup ranging from 9.50% to 14.90% per annum (2007: Nil) and are due to mature latest by January 2009. 9. INVESTMENTS - NET 9.1 Investments by types Note / Annexure Held for trading securities - Shares in listed companies - Market Treasury Bills - Units in open ended mutual funds Held by 2008 Given as 2007 Given as

Total

Held by

Total

group collateral group collateral ----------------------------------------(Rupees in '000)---------------------------------------177,786 19,588 325,831 523,205 177,786 19,588 325,831 523,205 230,752 288,337 519,089 230,752 288,337 519,089

9.5 & Annexure I (note 2) 9.5 9.5 & Annexure I (note 2)

Available-for-sale securities - Market Treasury Bills - Pakistan Investment Bonds - Shares in listed companies - Units in open ended mutual fund - Shares in unlisted companies - NIT units - Sukuk Bonds - Listed Term Finance Certificates (TFCs)

9.6 9.6 9.4 & Annexure I (note 1) 9.4 & Annexure I (note 1) 9.4 & Annexure I (note 3) 9.4 & Annexure I (note 4) 9.4 & Annexure I (note 4)

64,205,902 2,370,664 8,189,828 676,909 515,724 5,253 400,000 1,404,384 77,768,664

6,287,636 6,287,636

70,493,538 2,370,664 8,189,828 676,909 515,724 5,253 400,000 1,404,384 84,056,300

58,268,118 2,726,418 7,388,550 1,677,063 515,333 5,253 400,000 1,136,821 72,117,556

26,996,870 26,996,870

85,264,988 2,726,418 7,388,550 1,677,063 515,333 5,253 400,000 1,136,821 99,114,426

Held-to-maturity securities - Market Treasury Bills - Pakistan Investment Bonds - Federal Government Securities - Provincial Government Securities - Government Compensation Bonds - Sukuk Bonds - Euro Bonds - Unlisted Term Finance Certificates (TFCs), Debentures, Bonds and Participation Term Certificates (PTCs) - Certificates of Investment

9.6 9.6 Annexure I (note 5) Annexure I (note 5) Annexure I (note 5) Annexure I (note 5)

1,321,816 2,312,812 392,216 118 870,771 2,401,260 4,969,516

1,321,816 2,312,812 392,216 118 870,771 2,401,260 4,969,516

216,881 2,377,654 704,928 118 870,771 1,785,475 3,299,630

216,881 2,377,654 704,928 118 870,771 1,785,475 3,299,630

Annexure I (note 4) Annexure I (note 6)

4,027,037 250,000 16,545,546

4,027,037 250,000 16,545,546

1,346,566 500,000 11,102,023

1,346,566 500,000 11,102,023

Associates Adamjee Insurance Company Limited First Women Bank Limited

Annexure I (note 7) 9.7 2,511,489 63,300 2,574,789 97,412,204 6,287,636 6,287,636 (1,620) 2,511,489 63,300 2,574,789 103,699,840 (3,044,962) 100,654,878 (2,764,956) 3,277,157 63,300 3,340,457 87,079,125 (468,288) 86,610,837 1,790,202 3,277,157 63,300 3,340,457

26,996,870 114,075,995 (468,288)

Provision for diminution in value of investments Investments (net of provisions) (Deficit) / Surplus on revaluation of available for sale securities - net Deficit on revaluation of 'held for trading' securities - net Investments at revalued amounts - net of provisions

9.3

(3,044,962) 94,367,242

26,996,870 113,607,707 (35,990) 1,754,212

22.2

(2,763,336)

9.5

(99,531) 91,504,375

6,286,016

(99,531) 97,790,391

(3,329) 88,397,710

(3,329)

26,960,880 115,358,590

Note / Annexure 9.2 Investments by segments Federal Government Securities: - Market Treasury Bills - Pakistan Investment Bonds - Federal Government Securities - Government Compensation Bonds - Euro Bonds - Sukuk Bonds - Unlisted Term Finance Certificate Overseas Government Securities - Government of Sri Lanka Treasury Bonds - Sri Lanka Development Bonds - Market Treasury Bills Provincial Government Securities Associated Undertakings Fully Paid-up Ordinary Shares / Certificates / Units - Listed companies / mutual funds / modarabas - Unlisted companies / funds Units of Open Ended Mutual Funds Fully Paid-up Preference Shares: - Listed Companies - Unlisted Companies Term Finance Certificates, Debentures, Bonds and Participation Term Certificates: - Listed Term Finance Certificates - Unlisted Term Finance Certificates - Debentures, Bonds and Participation Term Certificates (PTCs) - Certificates of Investment Other Investments: - Sukuk Bonds - NIT Units Total investments Less: Provision for diminution in the value of investments Investments (net of provisions) (Deficit) / surplus on revaluation of available for sale securities - net Deficit on revaluation of held for trading securities - net Investments at revalued amounts - net of provisions 9.3 Particulars of provision Opening balance Charge during the year Reversal made during the year Investment written off against provision Closing balance 9.3.1 Particulars of provision in respect of Type and Segment Available-for-sale securities Listed shares / Certificates / Units Unlisted shares Held-to-maturity securities Unlisted TFCs, Debentures, Bonds and Participation Term Certificates 22.2 9.5 9.7 & Annexure I (note 7) Annexure I (note 1 & 2) Annexure I (note 3) Annexure I (note 1)

2008 2007 (Rupees in '000)

9.6 9.6 Annexure I (note 5) Annexure I (note 5) Annexure I (note 5) Annexure I (note 4 & 5) Annexure I (note 4)

70,513,126 4,683,476 322,216 870,771 4,969,516 1,838,533 3,000,000

85,264,988 5,104,072 378,845 870,771 3,299,630 1,585,475 -

Annexure I (note 5)

70,000 1,321,816 118 2,574,789 8,306,012 415,724 1,002,740

201,763 124,320 216,881 118 3,340,457 7,557,700 415,333 1,965,400

Annexure I (note 1) Annexure I (note 3)

61,602 100,000

61,602 100,000

Annexure I (note 4) Annexure I (note 4) Annexure I (note 4) Annexure I (note 6)

1,404,384 897,448 129,589 250,000

1,136,821 1,223,068 123,498 500,000

Annexure I (note 5)

9.3

962,727 5,253 103,699,840 (3,044,962) 100,654,878 (2,764,956) (99,531) 97,790,391

600,000 5,253 114,075,995 (468,288) 113,607,707 1,754,212 (3,329) 115,358,590

9.8

468,288 2,685,215 (1,221) 2,683,994 (107,320) 3,044,962

363,019 138,046 (32,777) 105,269 468,288

9.8

2,787,910 70,477 2,858,387 186,575 3,044,962

197,496 70,477 267,973 200,315 468,288

9.4

Quality of 'available for sale' securities Market value/ carrying value for unlisted investments (Rupees in '000) Market Treasury Bills Pakistan Investment Bonds Listed Term Finance Certificates Askari Bank Limited Bank Al-Habib Limited Bank Alfalah Limited United Bank Limited Allied Bank Limited Jahangir Siddiqui & Company Limited Pakistan Services Limited Soneri Bank Limited Pak Arab Fertilizers Limited Shares in Listed Companies Abbott Laboratories Pakistan Limited Allied Bank Limited Arif Habib Bank Limited Arif Habib Limited Arif Habib Securities Limited Askari Bank Limited Atlas Bank Limited Attock Petroleum Limited Azgard Nine Limited - preference shares Azgard Nine Limited - ordinary shares Bank Alfalah Limited Bank Al-Habib Limited Bank Islami Pakistan Limited Century Papers and Board Mills Limited Cherat Cement Company Limited Samba Bank Limited (Formerly Crescent Commercial Bank Limited) EFU General Insurance Company Limited EFU Life Assurance Company Limited Engro Chemical Pakistan Limited Fauji Fertilizer Bin Qasim Company Limited Fauji Fertilizer Company Limited First Al - Noor Modaraba Glaxo Smithkline Pakistan Limited Habib Bank Limited Habib Metropolitan Bank Limited Hub Power Company Limited IGI Insurance Limited Indus Motors Company Limited International Industries Limited JS Bank Limited Jahangir Saddique & Company Limited Kohinoor Energy Limited Kot Addu Power Company Limited Lucky Cement Limited Maple Leaf Cement Company Limited Masood Textile Mills Limited - preference shares Mehr Dastagir Textile Mills Limited Millat Tractors Limited National Bank of Pakistan National Refinary Limited NIB Bank Limited Oil & Gas Development Company Limited Orix Leasing Pakistan Limited Pace Pakistan Limited Packages Limited Pak Suzuki Motor Company Limited Pakistan Cables Limited Pakistan Cement Company Limited Pakistan Oilfields Limited Pakistan Petroleum Limited Pakistan State Oil Company Limited Pakistan Telecommunication Company Limited Pakistan Tobacco Company Limited PICIC Commercial Bank Limited Rupali Polyester Limited Shell Pakistan Limited Soneri Bank Limited ** Sui Northern Gas Pipelines Limited Taj Textile Mills Limited Thal Limited The Bank of Punjab * Trust Securities & Brokerage Limited TRG Pakistan Limited Unilever Pakistan Limited United Bank Limited Zulfiqar Industries Limited 70,402,111 1,902,599 201,636 99,840 248,293 307,572 322,420 149,790 99,980 1,429,531 12,151 80,985 7,475 64,347 62,455 20,386 15,607 10,268 50,400 106,366 12,650 329 1,601 2,700 82,759 52,795 400,440 20,658 36,806 92,010 14,545 13,244 50,775 5,164 17,595 7,571 60,460 1,059 28,890 5,472 50,887 50,000 13,663 12,216 85,237 2,855 107,487 3,847 372 1,779 3,949 5,210 147 81,553 71,952 67,461 82,655 14,744 25,683 30,829 1,024,261 1 3,058 84,785 2,541 890 60,161 81,719 3,644 3,311,549 2008 Credit rating Long Short term term Rated by Market value/ carrying value for unlisted investments (Rupees in '000) 85,071,912 2,711,499 203,717 99,880 248,390 307,704 49,940 4,520 149,850 100,000 1,164,001 26,291 94,137 190 41,568 323,753 30,107 9,572 5,656 153,265 206,743 2,430 33,389 1,143 2,095 329,596 3,123 242,631 150,946 809,675 24,157 83,631 127,315 29,078 831,260 59,643 20,748 35,694 24,035 211,261 12,233 PACRA 50,000 9,701 84,283 237,572 7,101 268,782 5,995 10,051 9,383 8,109 13,709 1,140 101,992 280,602 29,275 253,256 21,568 11,825 26,671 26,531 96,292 3,128,624 1 3,327 2,550 75,880 304,339 3,533 8,997,457 Not available Not available Not available A1+ A1 A1+ A1+ Not available A1+ Not available Not available Not available Not available Not available A1+ Not available Not available A1 Not available Not available A1+ A1+ Not available Not available Not available Not available A1+ Not available AAAAAAAA AA+ A A+ AA 2007 Credit rating Long term Short term Rated by

(Unrated- Government Securities) (Unrated- Government Securities)

(Unrated- Government Securities) (Unrated- Government Securities)

AAAAAAAA AA

A+ AA

(Unrated) (Unrated) (Unrated) (Unrated) (Unrated) (Unrated) (Unrated)

PACRA PACRA PACRA JCRVIS JCRVIS

PACRA JCRVIS

(Unrated) (Unrated) (Unrated) (Unrated) (Unrated) (Unrated) (Unrated) (Unrated)

PACRA PACRA PACRA JCRVIS PACRA JCRVIS PACRA JCRVIS

AA A+ AAA AA+ AA AA A-

AA AAAA

BBB AA+ AA+ AA

AAA+

BBB+

AAA AAA AAA AA+ A+ AA

AAA

AAAA

AABBB+ AA+

Not available A1+ A1 A2 Not available A1+ A2 Not available A1 A1+ A1+ A2 Not available (Unrated) (Unrated) A1+ Not available Not available A3 Not available A1+ A1+ Not available (Unrated) Not available Not available A2 A1+ Not available Not available A2 Not available Not available Not available A-1+ A1+ A1+ A1+ A1 A1+ Not available Not available Not available Not available Not available A1+ Not available Not available Not available A1+ A1+ Not available Not available A1+ Not available A2 Not available A-1+ Not available

PACRA JCRVIS PACRA PACRA PACRA PACRA PACRA PACRA JCRVIS

A A-

AA AA+ A+ AA AA A-

JCRVIS JCRVIS PACRA

A AA A+ AA

JCRVIS JCRVIS PACRA PACRA

BBB AA+ AA+ AA

PACRA PACRA

Not available A1A2 Not available Not available A1+ A2 A1 A1 A1+ A1+ A2 Not available Not available A(Unrated) (Unrated) A1+ Not available Not available A3 Not available A1+ A1+ Not available (Unrated) Not available Not available Not available Not available Not available

JCRVIS PACRA

PACRA PACRA PACRA PACRA PACRA PACRA PACRA

JCRVIS JCRVIS JCRVIS PACRA

JCRVIS JCRVIS PACRA PACRA

JCRVIS PACRA JCRVIS PACRA PACRA PACRA

AAA A+ AAA AA+ AA

JCRVIS PACRA JCRVIS PACRA PACRA

PACRA

AAA

PACRA

A+

JCRVIS

PACRA PACRA

AAAA

PACRA PACRA

PACRA PACRA JCRVIS

AA

JCRVIS

Open Ended Mutual Fund Atlas Islamic Fund HBL Income Fund IGI Income Fund KASB Liquid Fund MCB Dynamic Allocation Fund MCB Dynamic Cash Fund MCB Dynamic Stock Fund NAFA Cash Fund Unit Trust of Pakistan Balance carried forward 7,794 13,662 55,046 288,355 154,376 519,233 77,565,023 Not available 10,613 30,000 30,009 1,272,334 323,366 10,003 92,054 1,768,379 99,713,249 Not available Not available Not available Not available Not available (Unrated) (Unrated)

Not available Not available Not available Not available

MFR 5 STAR 5 Star

JCRVIS PACRA

Market value/ carrying value for unlisted investments (Rupees in '000)

2008 Credit rating Long Short term term

Rated by

Market value/ carrying value for unlisted investments (Rupees in '000)

2007 Credit rating Long term Short term

Rated by

Balance brought forward Shares in Un-listed Companies * Khushhali Bank Limited * Equity Participation Fund * National Investment Trust Limited * SME Bank Limited First Capital Investment (Private) Limited Pak Asian Fund * Arabian Sea Country Club * Central Depository Company of Pakistan Limited * National Institutional Facilitation Technologies (Private) Limited Society for Worldwide Inter Fund Transfer (SWIFT) Fazal Cloth Mills Limited - preference share Lanka Clearing (Private) Limited Lanka Financial Services Bureau Limited Credit Information Bureau of Srilanka

77,565,023 300,000 1,500 100 10,106 2,500 11,500 2,900 10,000 1,527 2,993 100,000 700 1,400 21 445,247 AA-1 Not available Not available A3 (Unrated) Not available Not available Not available Not available Not available Not available Not available Not available Not available JCRVIS

99,713,249 300,000 1,500 100 10,106 2,500 11,500 2,900 10,000 1,527 2,993 100,000 570 1,142 17 444,855 AA-1 Not available Not available A2 (Unrated) Not available Not available Not available Not available Not available Not available Not available Not available Not available JCRVIS

BBB AM4+

JCRVIS PACRA

BBB AM4+

JCRVIS PACRA

Other Investment Sukuk Bonds N.I.T. Units

419,000 3,689 78,432,959

(Unrated - Government Securities) 5 Star (Unrated) PACRA

419,000 6,620 100,583,723

(Unrated - Government Securities) 4 Star (Unrated) PACRA

* These are the strategic investments of the Group. ** This includes 32.287 million shares valuing Rs. 692.879 million (2007: 32.287 million shares valuing Rs. 2,116.414 million) which are held as strategic investment by the Group.

9.5

Unrealized gain / (loss) on revaluation of investments classified as 'held for trading'

Unrealized gain / (loss) as on December 31, 2008 Investee Company

Cost as at December 31, 2007

2007 2008 ----------------(Rupees in '000)----------------

Allied Bank Limited Arif Habib Securities Limited Attock Refinery Limited Attock Petroleum Limited Bank Al-Habib Limited Bank Alfalah Limited Bosicar Pakistan Limited Engro Chemical Pakistan Limited Fauji Cement Company Limited Glaxo Smithkline Pakistan Limited ICI Pakistan Limited J.O.V & Company Limited Jahangir Siddique and Company Limited KASB Bank Limited Lucky Cement Limited Maple Leaf Cement Company Limited National Bank of Pakistan National Refinery Limited PACE Pakistan Limited Packages Limited Pakistan Cement Company Limited Pakistan Oilfields Limited Pakistan Petroleum Limited Pakistan State Oil Company Limited Thal Limited TRG Pakistan Limited United Bank Limited MCB Dynamic Cash Fund Market Treasury Bills

(12,085) (16,696) (6,080) (3,512) (12,621) (27,448) (501) (3,003) (11,220) (5,310) (706) (4,021) 3,667 5 (99,531)

(1,453) (3,421) (48) (305) (1,122) (145) (168) (413) (25) (142) (331) (525) (223) (195) (2,418) (983) (216) (59) (31) (882) 9,776 (3,329)

21,665 31,159 10,551 6,425 20,709 42,711 1,116 4,506 19,829 10,844 1,851 6,420 325,831 19,588 523,205

32,421 51,972 1,978 6,710 24,482 1,635 2,631 8,583 1,035 3,054 6,065 9,369 8,099 1,335 30,842 19,362 4,282 1,624 1,424 13,849 288,337 519,089

9.6

"Available for sale" Market Treasury Bills and Pakistan Investment Bonds are eligible for rediscounting withthe State Bank of Pakistan (SBP). The market value of Pakistan Investment Bonds and Market Treasury Bills classified as 'held to maturity' as at December 31, 2008 amounted to Rs. 1,659.166 million and Rs. 1,436.673 million (2007: Pakistan Investment Bonds Rs. 1,990.67 million and Market Treasury Bills Rs. 237.70 ) respectively. Investment of the Group in Adamjee Insurance Company Limited has been accounted for under the equity method of accounting based on its financial statements as at December 31, 2008 in accordance with the treatment specified in International Accounting Standard 28, (IAS28) 'Accounting for Investments in Associates'. The market value ofthe investment in Adamjee Insurance Company Limited as at December 31, 2008 amounted to Rs. 3,032.786 million (2007: Rs. 10,671.631 million). Investment in Adamjee Insurance Company Limited under equity method - holding 29.13% 2007 2008 (Rupees in '000) Opening Balance Share of profit for the year before tax Dividend from associate Share of tax Share of unrealized deficit on assets -net of tax Closing Balance 3,277,157 30,843 (89,340) (25,164) (83,661) (682,007) 2,511,489 2,259,550 1,223,633 (98,274) (15,769) 1,109,590 (91,983) 3,277,157

9.7

9.8

The Karachi Stock Exchange (Guarantee) Limited (KSE) placed a Floor Mechanism on the market value of securities based on the closing prices of securities prevailing as on August 27, 2008. Under the Floor Mechanism, the individual security price of equity securities could vary within normal circuit breaker limit, but not below the floor price level. The mechanism was effective from August 28, 2008 and remained in place until December 15, 2008. Consequent to the introduction of Floor Mechanism by KSE, the market volume declined significantly during the period from August 27, 2008 to December 15, 2008. There were lower floors on a number of securities at December 31, 2008. The equity securities have been valued at prices quoted on the KSE on December 31, 2008 without any adjustment as allowed by the State Bank of Pakistan (SBP) BSD Circular Letter No. 2 dated January 27, 2009. Furthermore, SBP BSD Circular No. 4 dated February 13, 2009 has allowed to follow Securities and Exchange Commission of Pakistan (SECP) notification vide SRO 150 (1)/2009 dated February 13, 2009 allowing that the impairment loss, if any, recognized as on December 31, 2008 due to valuation of listed equity investments held as Available for Sale to quoted market prices may be shown under the equity. The amount taken to equity including any adjustment/effect for price movements shall be taken to Profit and Loss Account on quarterly basis during the year ending December 31, 2009. The amount taken to equity at December 31, 2008 shall be treated as a charge to Profit and Loss Account for the purposes of distribution as dividend. The impairment loss based on market values as at December 31, 2008 has been determined at Rs 4,893.731 million. In view of the Floor Mechanism as explained above and current economic conditions in the country, the management believes that these are rare circumstances and the plunge in equity markets cannot be considered to be a fair reflection of equity values. Accordingly, the management on the basis of their estimates and prudence has made a provision of Rs 2,591.635 million against the above amount. Therefore, full recognition of impairment for Available for Sale equity securities through Profit and Loss account will not reflect the correct financial performance of the Bank. The recognition of impairment loss based on the market values as at December 31, 2008 would have had the following effect on these financial statements: 2008 (Rupees in '000) Increase in Impairment Loss in Profit and Loss Account Decrease in tax charge for the year Decrease in profit for the year - after tax 2,302,096 805,734 1,496,362 Rupees Decrease in earnings per share - after tax 2.38 (Rupees in '000) Decrease in deficit on revaluation of available for sale securities Decrease in unappropriated profit 2,302,096 1,496,362

9.9

At December 31, 2008 market value of quoted investments was Rs. 84,191.078 million (2007: Rs. 113,354.432 million) while the book value of unquoted investments was Rs. 13,959.421 million (2007: Rs. 9,391.098 million). Investments include Pakistan Investment Bonds amounting to Rs. 232.60 million (2007: Rs. 232.60 million) earmarked by the SBP and National Bank of Pakistan against TT / DD discounting facilities and demand note facilities sanctioned to the Group. In addition, Pakistan Investment Bonds amounting to Rs. 5 million (2007: Rs. 5 million) have been pledged with the Controller of Military Accounts on account of Regimental Fund account. Certain approved / Government securities are kept with the SBP to meet statutory liquidity requirements calculated on the basis of domestic demand and time liabilities. The Group's investment in First Women Bank Limited is being carried at cost and have not been accounted for under equity method as the group does not have significant influence over the entity.

9.10

9.11

9.12

Note

2008

2007

(Rupees in '000) 10. ADVANCES - NET Loans, cash credits, running finances, etc. In Pakistan Outside Pakistan Net investment in finance lease In Pakistan Outside Pakistan Bills discounted and purchased (excluding treasury bills) Payable in Pakistan Payable outside Pakistan Advances - gross Provision against advances Specific provision General provision General provision against consumer loans General provision for potential lease losses (in Srilanka operations) 10.4 (9,895,889) 10.4.3 10.4.4 (273,222) (533,693) (9,051) (10,711,855) Advances - net of provision 10.1 Particulars of advances (gross) 262,519,312 10,701,373 273,220,685 10.1.2 Short-term Long-term 157,398,922 115,821,763 273,220,685 212,238,196 17,493,864 229,732,060 153,980,413 75,751,647 229,732,060 262,508,830 (7,326,953) (2,749,815) (688,665) (6,841) (10,772,274) 218,959,786 10.2 5,356,835 90,733 5,447,568 2,364,211 4,111,059 6,475,270 273,220,685 6,902,283 67,710 6,969,993 2,949,228 4,234,574 7,183,802 229,732,060

252,387,594 8,910,253 261,297,847

208,588,318 6,989,947 215,578,265

10.1.1 In local currency In foreign currencies

10.2

Net investment in finance lease 2008 2007 Later than Over five Total Not later than Later than Over five years Total one and less years one year one and less than five than five years years -------------------------------------------------------------(Rupees in '000)-------------------------------------------------------------

Not later than one year

Lease rentals receivable Guaranteed residual value Minimum lease payments Finance charge for future periods Present value of minimum lease payments

942,728 94,512 1,037,240 (225,636)

4,055,066 1,229,233 5,284,299 (652,250)

981 2,937 3,918 (3)

4,998,775 1,326,682 6,325,457 (877,889)

2,244,569 300,233 2,544,802 (521,511)

4,515,068 1,160,176 5,675,244 (735,651)

7,229 648 7,877 (768)

6,766,866 1,461,057 8,227,923 (1,257,930)

811,604

4,632,049

3,915

5,447,568

2,023,291

4,939,593

7,109

6,969,993

10.3

Advances include Rs. 18,268.877 million (2007: Rs. 10,725.308 million) which have been placed under the non-performing status as detailed below: 2008 Specific Provision Required Domestic Overseas Total

Category of Classification

Note

Classified Advances Domestic Overseas Total

Specific Provision Held Domestic Overseas Total

--------------------------------------------------------------- (Rupees in '000) --------------------------------------------------------------Other Assets Especially Mentioned (OAEM) 10.3.1 Substandard Doubtful Loss 100,447 5,440,860 2,595,782 6,457,011 14,594,100 501 3,674,276 3,674,777 100,447 5,440,860 2,596,283 10,131,287 18,268,877 897,768 1,186,305 6,329,025 8,413,098 251 1,482,540 1,482,791 2007 Category of Classification Other Assets Especially Mentioned (OAEM) 10.3.1 Substandard Doubtful Loss Classified Advances Domestic Overseas Total Specific Provision Required Domestic Overseas Total Specific Provision Held Domestic Overseas Total 897,768 1,186,556 7,811,565 9,895,889 897,768 1,186,305 6,329,025 8,413,098 251 1,482,540 1,482,791 897,768 1,186,556 7,811,565 9,895,889

--------------------------------------------------------------- (Rupees in '000) --------------------------------------------------------------101,910 842,804 1,691,207 5,374,166 8,010,087 11,438 8,373 2,695,410 2,715,221 101,910 854,242 1,699,580 8,069,576 10,725,308 202,432 832,623 5,319,633 6,354,688 2,859 4,186 965,220 972,265 205,291 836,809 6,284,853 7,326,953 202,432 832,623 5,319,633 6,354,688 2,859 4,186 965,220 972,265 205,291 836,809 6,284,853 7,326,953

10.3.1 This represents non-performing portfolio of agricultural financing classified as OAEM as per the requirements of the Prudential Regulation for Agricultural Financing issued by the State Bank of Pakistan. 2008 General Leasing Total provision (general) against consumer loans -------------------------- (Rupees in '000) -------------------------General

Note

Specific

10.4

Particulars of provision against advances Opening balance Exchange adjustments Provision made during the year Transfer Amounts written off Closing balance 10.5.1 10.4.2 7,326,953 204,103 1,487,889 2,476,593 (1,599,649) 9,895,889 2,749,815 (2,476,593) 273,222 533,693 688,665 (154,972) 6,841 2,210 9,051 10,772,274 204,103 1,335,127 (1,599,649) 10,711,855

Specific

2007 General Leasing Total provision (general) against consumer loans -------------------------- (Rupees in '000) -------------------------General 2,277,467 472,348 2,749,815 373,823 314,842 688,665 3,820 (53) 3,074 6,841 8,608,344 (17,733) 2,959,583 (777,920) 10,772,274

Opening balance Exchange adjustments Provision made during the year Amounts written off Closing balance 10.4.2 10.5.1

5,953,234 (17,680) 2,169,319 (777,920) 7,326,953

Specific

2008 2007 General Total Specific General Total (total) (total) --------------------------------------- (Rupees in '000) ---------------------------------------

10.4.1 Particulars of provisions against advances In local currency In foreign currencies 8,329,948 1,565,941 9,895,889 806,915 9,051 815,966 9,136,863 1,574,992 10,711,855 6,274,466 1,052,487 7,326,953 Note 10.4.2 The following amounts have been charged to the profit and loss account: Specific provision General provision General provision against consumer loans General provision for potential lease losses (in Srilanka operations) 1,487,889 (154,972) 2,210 1,335,127 2,169,319 472,348 314,842 3,074 2,959,583 3,438,480 6,841 3,445,321 9,712,946 1,059,328 10,772,274

2008 2007 (Rupees in '000)

10.4.3 10.4.4

10.4.3

During the current year, the management of the Bank has revised the estimate relating to general provision against unidentified losses and ccordingly the general provision against loans and advances has been reduced from around 1% to around 0.1% of gross advances. The estimate of providing 1% provision was made when FSV benefit was in place and unidentified losses were not properly covered through provisions. Since over the period provisions have adequately been made after withdrawal of FSV benefit, management thinks it appropriate to reverse the significant portion of already created provision. The said change in accounting estimate has been recognized in the current year in accordance with the requirements of International Accounting Standard (IAS) 8 " Accounting Policies, Change in Accounting Estimates and Errors". Had there been no change in accounting estimate, the profit before taxation for the year would have been lower by Rs.2,459.001 million and the general provision against advances would have been higher by the same amount.

State Bank of Pakistan vide BSD Circular No. 2 dated January 27, 2009 has allowed the banks to take benifit of FSV for loans classified after December 31, 2005. However, management has not taken the benefit offered by the said circular.
10.4.4 General provision against consumer loans represents provision maintained at an amount equal to 1.5% of the fully secured performing portfolio and 5% of the unsecured performing portfolio as required by the Prudential Regulations issued by the SBP. Note 10.5 10.5.1 Particulars of write offs: Against provisions Directly charged to the profit and loss account 10.4 1,599,649 1,599,649 749,712 849,937 1,599,649 777,920 199 778,119 750,520 27,599 778,119 2008 2007 (Rupees in '000)

10.5.2

Write offs of Rs. 500,000 and above Write offs of below Rs. 500,000

10.5.3

10.5.3

Details of loan write offs 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 December 31, 2008 is given at Annexure- III. However, this write off does not affect the Bank's right to recover the debts from these customers. Note 2008 2007 (Rupees in '000)

10.6

Particulars of advances to directors, executives, associated companies, etc. Debts due by 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 Debts due by 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

3,228,484 1,732,218 (1,116,217) 3,844,485

3,149,550 976,231 (897,297) 3,228,484

1,661,869 524,153 (2,186,022) 3,844,485

2,240,038 1,442,020 (2,020,189) 1,661,869 4,890,353

11. OPERATING FIXED ASSETS Capital work-in-progress Property and equipment Intangible asset 11.1 11.2 11.3 510,226 16,615,028 195,231 17,320,485 233,390 15,662,544 186,847 16,082,781

11.1

Capital work-in-progress Civil works Advances against purchase of property Advances to suppliers and contractors Others 210,051 101,709 198,466 510,226 92,308 5,900 71,094 64,088 233,390

11.2

Property and equipment 2008 --------------------------------Cost/ Revalued amount -------------------------------- --------- Accumulated depreciation --------At January 01, 2008 Additions/ At December 31, At January Charge for the At December (disposals)/ 2008 01, 2008 year / 31, 2008 adjustment (deprecation on disposals)

Description

Net book value at December 31, 2008

Annual rate of depreciation / estimated useful life

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

Land - Freehold

9,408,417

213,440 96,188 -

9,718,045

9,718,045

Land - Leasehold

57,430

57,430

57,430

Buildings on freehold land

3,960,149

118,674 168,881

4,247,704

979

91,202

92,181

4,155,523

50 years

Buildings on leasehold land

65,567

65,567

20,082

4,980

25,062

40,505

10 to 50 years

Furniture and fixture

636,720

70,487 (28,497)

678,710

289,047

34,977 (10,327)

313,697

365,013

10% to 33%

Electrical, Computers and office Equipment Vehicles

3,726,602

1,198,424 (227,028) 130,872 (320,632) 1,731,897 (576,157) 265,069

4,697,998

2,348,746

609,322 (216,461) 82,229 (127,597) 822,710 (354,385) -

2,741,607

1,956,391

20% to 33%

730,691

540,931

264,178

218,810

322,121

20%

18,585,576

20,006,385

2,923,032

3,391,357

16,615,028

11.2

Property and equipment 2007 Description --------------------------------Cost/ Revalued amount -------------------------------At January Additions/ Write-off / Revaluation Adjustment / At December 01, 2007 (disposals) Reversal due surplus transfer out 31, 2007 to revaluation --------- Accumulated depreciation --------At January Charge for the year Write-off / Revaluation transfer in/ 01, 2007 / (deprecation on Reversal due to surplus (transfer out) disposals) revaluation At December 31, 2007 Net book Annual rate of value at depreciation / December estimated useful 31, 2007 life

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

Land - Freehold

3,896,428

1,426,790

4,085,199

9,408,417

9,408,417

Land - Leasehold

57,430

57,430

57,430

Buildings on freehold land

2,260,750

1,058,704

(224,068)

821,340

43,423

3,960,149

136,813

88,234

(224,068)

979

3,959,170

50 years

Buildings on leasehold land

57,536

8,031

65,567

17,995

2,087

20,082

45,485

10 to 50 years

Furniture and fixture

555,761

106,834 (13,136)

(12,739)

636,720

270,763

33,258 (11,202)

(3,772)

289,047

347,673

10% to 33%

Electrical, Computers and office Equipment Vehicles

3,057,297

844,290 (118,233) 219,071 (84,167) 3,663,720 (215,536)

(13,329)

(43,423)

3,726,602

2,038,762

416,557 (96,379) 63,991 (58,672) 604,127 (166,253)

(10,194)

2,348,746

1,377,856

20% to 33%

595,787

730,691

267,883

(9,024)

264,178

466,513

20%

10,480,989

(250,136)

4,906,539 -

18,585,576

2,732,216

(238,034)

(9,024)

2,923,032

15,662,544

11.2.1

The land and buildings of the Group were last revalued in December 2007 by independent valuers (Pee Dee Associates & Arch-eDecon), valuation and engineering consultants, on the basis of market value. This valuation was incorporated at December 31, 2007. The information relating to location of revalued assets is given in Annexure V. The details of revalued amounts are as follows:

(Rupees in '000) Total revalued amount of land Total revalued amount of buildings 9,562,035 4,172,557

Had the land and buildings not been revalued, the total carrying amounts as at December 31, 2008 would have been as follows: (Rupees in '000) Land Buildings 11.2.2 The gross carrying amount of fully depreciated assets that are still in use are as follows: Furniture and fixture Electrical, computers and office equipment Vehicles 9,075 1,374,754 57,016 2,228,488 2,636,859

11.2.3

Details of disposal of operating fixed assets The information relating to disposal of operating fixed assets required to be disclosed as part of the financial statements by the State Bank of Pakistan is given in Annexure IV and is an integral part of these financial statements.

11.3

Intangible asset 2008 Description Cost Accumulated amortization At January Additions At December At January Amortization At December 01, 2008 31, 2008 01, 2008 for the year 31, 2008 Net book value at December 31, 2008 -------------------------------------(Rupees in '000)------------------------------------151,849 151,849 712,082 712,082 373,386 373,386 143,465 143,465 516,851 516,851 195,231 195,231 Annual rate of amortization % 33.33

Computer software

560,233 560,233

Description

2007 Cost Accumulated amortization At January Additions At December At January Amortization At December 01, 2007 31, 2007 01, 2007 for the year 31, 2007

Net book value at December 31, 2007 -------------------------------------(Rupees in '000)------------------------------------6,837 6,837 560,233 560,233 181,398 181,398 191,988 191,988 373,386 373,386 186,847 186,847

Annual rate of amortization

% 33.33

Computer software

553,396 553,396

12. DEFERRED TAX LIABILITY / (ASSET) - NET The details of the tax effect of taxable and deductible temporary differences are as follows: Note Taxable temporary differences on: Surplus on revaluation of operating fixed assets Accelerated tax depreciation Net investment in finance lease receivable Surplus on revaluation of securities 22.2 2007 2008 (Rupees in '000) 517,120 685,838 436,823 1,639,781 469,482 568,718 599,216 156,767 1,794,183

22.1

Deductible temporary differences on: Deficit on revaluation of securities Provision for contributory benevolent scheme Provision for gratuity Provision for post retirement medical benefits Others

22.2

(661,966) (79,121) (2,260) (455,587) (552) (1,199,486) 440,295

(98,706) (1,197) (509,298) (1,396) (610,597) 1,183,586

13. OTHER ASSETS - NET Income / mark-up accrued on advances and investments - local currency Income / mark-up accrued on advances and investments - foreign currencies Advances, deposits, advance rent and other prepayments Advance taxation (payments less provisions) Compensation for delayed income tax refunds Branch Adjustment Account Unrealised gain on derivative financial instruments Non-banking assets acquired in satisfaction of claims Stationery and stamps on hand Prepaid exchange risk fee Receivable from the pension fund Others Less: Provision held against other assets 13.2 37.3 13.3 13.1 7,901,740 184,677 2,612,432 51,819 44,802 1,507,969 1,155,832 83,077 5,399,019 1,328,846 20,270,213 441,985 19,828,228 4,752,151 233,133 1,003,018 44,802 208,737 453,802 486,471 48,676 139 10,651,047 520,848 18,402,824 505,986 17,896,838

13.1 The market value of non-banking assets with carrying value of Rs. 1,033.222 million (2007: Rs. 363.862 million) net of provision as per the valuation report dated December 31, 2008 amounted to Rs. 996.245 million (2007: Based on valuation as of December 31, 2007 Rs. 442.271 million).

13.2

Provision held against other assets

2008 2007 (Rupees in '000) 505,986 10,120 10,120 (59,364) (14,757) 441,985 515,690 17,257 (21,000) (3,743) (5,961) 505,986

Opening balance Charge for the year Reversal during the year Write off during the year Transfer Closing balance

Contract / notional amount Unrealised gain 2007 2007 2008 2008 ---------------------------(Rupees in '000)--------------------------13.3 Derivative financial instruments Unrealised gain on: Interest rate swaps Cross currency swaps Forward exchange contracts

166,667 173,127 35,252,291 35,592,085

250,000 67,789,886 68,039,886

6,222 1,625 1,500,122 1,507,969

11,297 442,505 453,802

14.

CONTINGENT ASSETS There were no contingent assets of the Group as at December 31, 2008 and December 31, 2007. Note 2008 2007 (Rupees in '000)

15.

BILLS PAYABLE In Pakistan Outside Pakistan 10,522,565 28,903 10,551,468 10,447,928 31,130 10,479,058

16.

BORROWINGS In Pakistan Outside Pakistan 17,742,776 4,921,064 22,663,840 35,497,881 3,908,950 39,406,831

16.1

Particulars of borrowings with respect to currencies In local currency In foreign currencies 17,742,776 4,921,064 22,663,840 35,497,881 3,908,950 39,406,831

16.2

Details of borrowings (secured / unsecured) Secured Borrowings from State Bank of Pakistan Export refinance scheme Long term financing - export oriented projects scheme

16.3 & 16.5 16.4 & 16.5

9,217,004 2,100,751 11,317,755 6,325,021 17,642,776 4,418,990 602,074 5,021,064 22,663,840

5,593,462 2,473,077 8,066,539 2,932,600 26,931,342 37,930,481 500,000 976,350 1,476,350 39,406,831

Borrowings from other financial institution Repurchase agreement borrowings Unsecured Call borrowings Overdrawn nostro accounts

16.6 16.7

16.8

16.3

16.4

The Bank has entered into agreements for financing with the State Bank of Pakistan (SBP) for extending export finance to customers. As per the agreements, the Bank has granted SBP the right to recover the outstanding amount from the Bank at the date of maturity of the finance by directly debiting the current account maintained by the Bank with SBP. The amount is due to SBP and have been obtained for providing long term finance to customers for export oriented projects. As per the agreements with SBP, the Bank has granted SBP the right to recover the outstanding amount from the Bank at the date of maturity of the finance by directly debiting the current account maintained by the Bank with SBP. Borrowings from SBP under the export refinance and long term financing for export oriented projects schemes are secured against the Bank's cash and security balances held by the SBP. These carry mark-up at the rate Nil (2007: 5.88% to 5.95% per annum). These carry mark-up rates ranging between 7.50% to 14.90% per annum (2007: 9.2 % to 10 % per annum) and are secured against Government securities of carrying value of Rs. 6,287.636 million (2007: Rs. 26,996.870 million). These are repayable latest by January, 2009. These carry mark-up at the rate of 15.50% (2007: 9.75%). These are repayable by February, 2009. 2007 2008 (Rupees in '000)

16.5

16.6 16.7

16.8

17.

DEPOSITS AND OTHER ACCOUNTS Customers Fixed deposits Saving deposits Current accounts - non remunerative Margin accounts Others Financial institutions Remunerative deposits Non-remunerative deposits

61,680,332 150,925,503 105,376,753 3,137,434 563 321,120,585 5,197,969 3,926,526 9,124,495 330,245,080

32,202,230 151,554,958 95,957,918 2,589,309 4,288 282,308,703 9,233,602 546,042 9,779,644 292,088,347

17.1

Particulars of deposits In local currency In foreign currencies 312,892,689 17,352,391 330,245,080 278,059,003 14,029,344 292,088,347

17.2 18.

Deposits include deposits from related parties amounting to Rs. 7,788.459 million (2007: Rs. 503.522

SUB-ORDINATED LOAN -UNSECURED (NON-PARTICIPATORY) Mark-up payable Mark-up payment period

2008 2007 ---(Rupees in '000)--479,232

Listed Term Finance Certificates

Semi-annually 2003-2008

Note 19. OTHER LIABILITIES Mark-up / return / interest payable in local currency Mark-up / return / interest payable in foreign currencies Accrued expenses Unclaimed dividend Staff welfare fund Unrealised loss on derivative financial instruments Provision for employees' compensated absences Provision for post retirement medical benefits Provision for employees' contributory benevolent scheme Provision for gratuity Security deposits received in respect of finance lease Taxation (provision less payments) Retention money Insurance payable against consumer assets Branch adjustment account Others

2008 2007 (Rupees in '000)

19.1 37.3 37.3 37.3

4,229,668 114,034 1,792,281 275,073 65,531 8,470,041 752,947 1,400,413 274,446 6,457 1,320,327 22,403 398,369 151,990 1,978,962 21,252,942

1,550,398 76,656 787,185 1,313,371 76,876 541,962 974,464 1,455,135 282,019 3,421 1,468,077 1,348,843 40,999 391,729 1,405,330 11,716,465

Contract / Notional amount Unrealised loss 2008 2007 2008 2007 ---------------------------(Rupees in '000)--------------------------19.1 Derivative financial instruments Unrealised loss on: Interest rate swaps Cross currency swaps Forward exchange contracts

2,244,130 173,127 101,932,869 104,350,126

2,471,698 63,649,869 66,121,567

17,591 1,625 8,450,825 8,470,041

14,635 527,327 541,962

20.

SHARE CAPITAL 20.1 Authorised Capital 2008 2007 (Number of shares) 1,000,000,000 1,000,000,000 Ordinary shares of Rs 10 each 2008 2007 (Rupees in '000) 10,000,000 10,000,000

20.2

Issued, subscribed and paid-up capital 2008 2007 Issued as bonus Total Issued for Issued as Total shares cash bonus shares ----------------------------------------(Number of shares)---------------------------------------431,023,048 431,023,048 628,276,843 628,276,843 197,253,795 197,253,795 349,073,895 81,949,153 431,023,048 546,327,690 81,949,153 628,276,843 Opening balance Shares issued during the year Closing balance 2008 2007 (Rupees in '000)

Issued for cash

197,253,795 197,253,795

6,282,768 6,282,768

5,463,276 819,492 6,282,768

20.3

During the year 2006, the Bank was admitted to the Official List of the UK Listing Authority and to the London Stock Exchange Professional Securities Market for trading of Global Depositary Receipts (GDRs) issued by the Bank. The GDRs constitute an offering in the United States only to qualified institutional buyers in reliance on Rule 144A under the U.S Securities Act of 1933 and an offering outside the United States in reliance on Regulation S. The Bank had issued 8,622,100 GDRs each representing four ordinary equity shares at an offer price of US$ 17.3970 per GDR (total receipt being US$ 149.999 million). Accordingly, based on an exchange rate of Rs. 60.70 = US$ 1.00 (which was the exchange rate on the date of the final offering circular relating to the GDR issue made by the Bank), 34,488,400 ordinary equity shares of nominal value of Rs. 10 each of the Bank were issued at a premium of Rs. 254 per ordinary equity share (total premium amount being Rs. 8,760.054 million). Holders of GDRs are entitled, subject to the provisions of the Deposit Agreement, to receive dividend, if any and rank pari passu with other equity shareholders in respect of dividend. However, the holder of GDR have no voting rights or other direct rights of shareholders with respect to the equity shares underlying such GDRs. Subject to the terms and restrictions set out in the offering circular dated October 11, 2006, the deposited equity shares in respect of which the GDRs were issued may be withdrawn from the depository facility. Upon withdrawal, the holders will rank pari passu with other equity shareholders in respect of dividend, voting and other direct rights of shareholders. The GDRs are now fully fungible. The bank has obtained all required regulatory approvals for "Two Way Fungibility". Two way convertibility of GDRs would be limited to number of GDRs issued at the time of issuance i.e. 8.622 million, subject to availability of headroom and adjusted for subsequent corporate actions i.e. bonus shares, right issue and stock splits. 2008 2007 (Number of shares)

20.4

Number of shares held by the related parties as at December 31, are as follows: Siddiqsons Denim Mills Limited Din Leather (Private) Limited Adamjee Insurance Company Limited MCB Bank Limited Pension Fund MCB Bank Limited Provident Fund (Pakistan staff) Mayban International Trust (Labuan) Berhad 28,685,082 3,915,381 19,225,933 9,646,370 19,413,198 125,655,369 206,541,333 28,675,082 3,915,381 17,011,379 50,588,856 26,602,295 126,792,993

Note 21. RESERVES Share premium Exchange translation reserve Statutory reserve General reserve 21.1

2008 2007 (Rupees in '000)

9,702,528 192,242 8,277,551 18,600,000 36,772,321

9,702,528 (41,692) 6,740,091 17,600,000 34,000,927

21.1

Statutory reserve represents amount set aside as per the requirements of section 21 of the Banking Companies Ordinance, 1962. Note 2008 2007 (Rupees in '000)

22.

SURPLUS ON REVALUATION OF ASSETS - NET OF TAX Surplus / (deficit) arising on revaluation (net of tax) of: - fixed assets - available-for-sale securities (Deficit) / Surplus arising on revaluation of assets of associated undertaking (net of tax) 22.1 22.2 8,293,851 (2,102,990) (179,609) 6,011,252 8,109,249 1,597,445 502,398 10,209,092

22.1

Surplus on revaluation of fixed assets-net of tax Surplus on revaluation of fixed assets as at January 01 Adjustment / surplus during the year 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 December 31 Less: Related deferred tax liability on: Revaluation as at January 01 Adjustment / surplus during the year Incremental depreciation charged during the year transferred to profit and loss account (21,373) (11,506) (32,879) 8,810,971 (11,860) (6,385) (18,245) 8,578,731 8,578,731 265,119 3,690,437 4,906,539

469,482 59,144 (11,506) 517,120 8,293,851

188,398 287,469 (6,385) 469,482 8,109,249

Note

2008 2007 (Rupees in '000)

22.2

Surplus / (deficit) on revaluation of availablefor-sale securities - net of tax Federal Government Securities - Market Treasury Bills - Pakistan Investment Bonds Listed Securities - Shares / Certificates / Units - Open Ended Mutual Funds - Term Finance Certificates (2,286,629) 37,018 25,147 (2,224,464) Sukuk Bonds Add: Related deferred tax asset / (liability) 12 19,000 (2,764,956) 661,966 (2,102,990) 1,809,520 106,508 27,180 1,943,208 19,000 1,754,212 (156,767) 1,597,445 (91,427) (468,065) (193,077) (14,919)

23.

CONTINGENCIES AND COMMITMENTS 23.1 Transaction-related contingent liabilities Guarantees in favour of: Government Banks and financial institutions Others Suppliers' credit / payee guarantee 5,743,838 36,030 15,148,692 2,255,011 23,183,571 54,869,480 5,283,799 376,773 7,247,043 1,809,117 14,716,732 61,677,285

23.2 23.3

Trade-related contingent liabilities Other contingencies Claims against the Group not acknowledged as debts

226,246

134,079

23.4

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.

Note

2008 2007 (Rupees in '000)

23.5

Commitments in respect of forward foreign exchange contracts Purchase Sale 69,708,932 67,476,228 62,077,338 69,362,417

23.6 23.7

Commitments for the acquisition of fixed assets Other commitments Cross currency swaps (notional amount) Fx Options (notional amount) - Purchase - Sale Interest rate swaps - (notional amount) 24.1 & 24.2 24.1

557,810

78,670

346,254

1,845,484

24.1 & 24.2 2,410,797 20,827,530 26,644,450

351,702 351,702 2,721,698 -

Forward outright sale of Government Securities Outright purchase of Government Securities from SBP

23.8

Taxation The income tax assessments of the Bank have been finalised upto and including the Tax Year 2008. For the Tax Years 2003 to 2007, the department has amended the assessments on certain issues against which the Bank has filed appeal before the Commissioner of Income Tax (Appeals). In respect of the Tax Year 2003 to 2006, the Commissioner of Income Tax (Appeals) vide his orders has decided the matter in favour of the Bank against which the department has filed appeal before the Income Tax Appellate Tribunal (ITAT). The management and Bank's legal counsel are of the view that the issues will be decided in the Bank's favour as and when these are taken up by the appellate authorities. For Tax Year 2007, the department has amended the assessment on similar issues resulting in additional tax liability of Rs. 716.713 million against which the legal/appellate course from the Bank has reached ITAT level. Total disallowances for the assessment years 1994-95 to 1997-98 on account of interest in suspense amounted to Rs. 722.682 million out of which an amount of Rs. 317.289 million has been allowed in the assessment years 1998-1999 to 2000-2001. It is expected that the pending appeals in this regard in the Honourable Sindh High Court shall be decided in favour of the Bank as allowed in assessment years 1992-1993 and 1993-1994. Subsequent to the favourable order of the Honourable Sindh High Court, the management considers that provision is not necessary for the remaining tax liability for interest in suspense of Rs. 244.781 million as the Bank has been subjected to tax far exceeding its normal tax liability and is hopeful of favourable decisions in appeals. Accordingly, no provision has been made in these financial statements for the above amount.

24.

DERIVATIVE INSTRUMENTS Most corporates (counter parties) have either interest rate exposures arising from debt financing or excess liquidity or currency exposures arising out of commercial and business transactions. In the event of a shift in interest or foreign exchange (FX) rates, these corporates may incur higher borrowing costs or higher cash outflows that will adversely affect profitability. The Bank is providing solutions to this conundrum through derivatives. Through this, counterparties will be hedging exposure to adverse price movements in a security, typically when the counterparty has a concentrated position in the security and is acutely exposed to movements in the underlying risk factors. The Bank is in a better position to hedge that risk, and is thus able to provide cost efficient hedging solutions to the counterparties enabling them to concentrate on their business risk. Other Objectives include: contribution to the development of Pakistani financial markets. provision of financial solutions to the counterparties.

In light of the above the Bank is actively marketing interest rate risk and FX risk management tools, Interest Rate Swaps Third Currency FX options Currency Swaps.

Risk management is performed at: a) Strategic level: By senior management Assets and Liabilities Management Committee (ALCO), Risk Management Committee (RMC) and the Board of Directors to institute a risk management framework and to ensure provision of all resources and support required for effective risk management on Bankwide basis. Macro Level: By Financial Institution Public Sector (FIPS) & Market Risk Management (MRM) Division, responsible for policy formulation, procedure development & implementation, monitoring and reporting. Micro Level: Treasury Derivatives & Structured Product Desk and Treasury Operations, where risks are actually created.

b)

c)

FIPS & MRM Division is responsible for coordinating for risk management of derivatives. The risk management system generates marked to market risk numbers (i.e. VaR PVBP, duration, etc.) of Interest rate derivative portfolio. These numbers are reported to senior management on a daily basis. As per the State Bank of Pakistan's (SBP) regulations, currency options are hedged back to back and thus the risk associated with such transactions are minimal. However, the risk management system is capable of generating risk numbers for options (i.e. Delta, Gamma, Vega, Theta and Rho). Risk Limits Before initiating any new derivative transaction, Treasury Division requests the FIPS & MRM Division for risk limits. Limit requests are approved by the appropriate level of authority. Presently the Bank has notional limits (both for the portfolio and the counterparty).

24.1

Product analysis 2008 Interest Rate Swaps No. of Notional Contracts Principal (Rupees in '000)

Counter parties

Cross Currency Swaps No. of Notional Contracts Principal (Rupees in '000)

FX Options No. of Notional Contracts Principal * (Rupees in '000)

With Banks for Hedging Market Making With other entities for Hedging Market Making Total Hedging Market Making 2 2 173,127 173,127 2 2 2007 Counterparties Cross Currency Swaps No. of Contracts Notional Principal (Rupees in '000) With Banks for Hedging Market Making With other entities for Hedging Market Making Total Hedging Market Making 6 6 922,742 922,742 2 5 1,800,000 921,698 13 13 351,702 351,702 6 922,742 5 921,698 13 351,702 6 922,742 2 1,800,000 13 351,702 Interest Rate Swaps No. of Contracts Notional Principal (Rupees in '000) FX Options No. of Contracts Notional Principal * (Rupees in '000) 2,144,130 266,667 2 173,127 2 266,667 2 173,127 2 2,144,130 -

* At the exchange rate prevailing at the end of the reporting period.

24.2

Maturity analysis 2008 Remaining maturity No. of Contracts Interest rate swaps 1 to 3 month 1 to 2 Year 2 2 2,077,463 333,334 (13,380) (4,210) 2007 Remaining maturity No. of Contracts Interest rate swaps Upto 1 month 3 to 6 month 6 month to 1 year 1 to 2 Year 2 to 3 Years 3 to 5 Years 1 1 1 2 2 18,182 53,516 300,000 1,850,000 500,000 (286) (2,129) (5,206) (7,014) 2008 Remaining maturity No. of Contracts Cross currency swaps 2 to 3 Years 4 346,254 (1,625) 2007 Remaining maturity No. of Contracts Cross currency swaps 1 to 2 Years 2 to 3 Years 3 to 5 Years 2 2 8 588,660 240,000 1,016,824 2007 Remaining maturity No. of Contracts FX-options Upto 1 month 1 to 3 month 3 to 6 month 2 22 2 206,007 456,321 41,076 Notional Principal Negative Mark to Market Positive Net Notional Principal Negative Mark to Market Positive Net 1,625 Notional Principal Negative Mark to Market Positive Net 11,297 (286) (2,129) (5,206) 4,283 Notional Principal Negative Mark to Market Positive Net 6,222 (13,380) 2,012 Notional Principal Negative Mark to Market Positive Net

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

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

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

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

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

2008 2007 (Rupees in '000) 25. MARK-UP / RETURN / INTEREST EARNED On loans and advances to: Customers Financial institutions On investments in: Held for trading securities Available for sale securities Held to maturity securities

29,926,944 1,805 29,928,749 11,929 7,718,124 960,418 8,690,471 109,525 582,280 401,819 336,661 40,049,505

21,952,387 141,359 22,093,746 7,519,820 856,023 8,375,843 139,385 548,202 291,940 342,638 31,791,754

On deposits with financial institutions On securities purchased under resale agreements On money at call Others

26.

MARK-UP / RETURN / INTEREST EXPENSED Deposits Securities sold under repurchase agreements Other short-term borrowings Sub-ordinated loan Discount, commission and brokerage Others 9,426,724 944,891 519,139 5,785 475,382 221,001 11,592,922 5,903,356 641,080 812,410 98,135 319,427 84,411 7,858,819

27.

GAIN ON SALE OF SECURITIES - NET Federal Government Securities -Market Treasury Bills -Pakistan Investment Bonds Overseas Government Securities Listed Shares / Units

2,703 (16,610) 20,108 741,938 748,139

1,228 2,709 1,503,673 1,507,610

28.

OTHER INCOME - NET Rent on property / lockers Net profit on sale of property and equipment Exchange income on import / export bills purchased / negotiated Bad debts recovered Others 71,718 36,855 86,665 26,477 980,119 1,201,834 51,999 13,136 64,161 28,135 844,729 1,002,160

Note 29. ADMINISTRATIVE EXPENSES Salaries and allowances Charge / (reversal) for defined benefit plans and other benefits: - Approved pension fund - Post retirement medical benefits - Employees' contributory benevolent scheme - Employees' compensated absences - Gratuity scheme Contributions to defined contribution plan - provident fund Non-executive directors' fees Rent, taxes, insurance, electricity Legal and professional charges Communications Repairs and maintenance Stationery and printing Advertisement and publicity Cash transportation charges Instrument clearing charges Donations Auditors' remuneration Depreciation Amortization of intangible asset Travelling, conveyance and fuel Subscription Entertainment Training Expenses Petty Capital items Credit Card Related Expenses Others 37.8 37.8 37.8 37.8

2008 2007 (Rupees in '000)

6,680,204 (5,399,319) 98,739 48,384 (75,692) 1,063 (5,326,825) 135,164 4,044 1,044,824 204,771 849,579 510,418 329,730 207,395 399,317 112,677 29.1 11.2 11.3 17,468 822,710 143,465 621,465 25,294 102,670 96,458 103,116 64,365 431,993 7,580,302

5,808,830 (5,769,564) 145,388 60,094 100,729 1,598 (5,461,755) 109,778 720 843,957 308,366 656,629 376,987 265,582 363,090 361,875 101,716 8,102 12,297 604,127 191,988 321,309 16,516 50,264 65,495 208,705 67,755 157,972 5,440,305

29.1 Auditors' remuneration

2008 2007 KPMG Riaz Total KPMG Riaz Total Taseer Hadi Ahmad Taseer Hadi Ahmad & Co. & Co. & Co. & Co. ------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------Annual Audit fee Fee for the audit of branches For for audit of subsidaries For for audit of overseas subsidary Fee for audit of overseas branches Fee for half year review Special certifications, etc. Out-of-pocket expenses 1,906 1,551 63 890 2,235 825 7,470 1,906 1,551 380 890 2,235 825 7,787 3,812 3,102 443 561 1,650 1,780 4,470 1,650 17,468 1,733 1,410 58 809 441 750 5,201 1,733 1,410 40 809 441 750 5,183 3,466 2,820 98 413 1,500 1,618 882 1,500 12,297

2008

2007

(Rupees in '000) 30. OTHER CHARGES Provision / (reversal) against fraud and forgeries Fixed assets written off Penalties of State Bank of Pakistan Damages to premises Workers welfare fund VAT Sri Lanka Others 13,015 300,000 437,351 80,473 90,152 920,991 (440) 12,102 413,004 115,928 33,236 68,950 642,780

31.

TAXATION For the year Current Deferred Prior years Current Deferred Share of tax of associated undertaking (865,344) (865,344) 25,164 6,563,513 (1,294,586) (1,294,586) 15,769 6,084,641 7,387,345 16,348 7,403,693 6,463,560 899,898 7,363,458

31.1

Relationship between tax expense and accounting profit Accounting profit for the year Tax rate Tax on income Tax effect on separate block of income (taxable at reduced rate) Tax effect of permanent differences Tax effect of prior years provisions / reversals Reversal of deferred tax liability on incremental depreciation Share of tax of associated undertaking Tax charge for the year 21,886,740 35% 7,660,359 (234,934) (10,226) (865,344) (11,506) 25,164 6,563,513 22,526,311 35% 7,884,209 (120,057) (394,309) (1,294,586) (6,385) 15,769 6,084,641

32.

CREDIT RATING PACRA through its notification in June 2008, has assigned long term credit rating of AA+ [double A plus] and short-term credit rating of A1+ [A one plus] to the Bank (2007: AA+ [Double A plus] for long term and A1+ [A one plus] for short term rating).

Note

2008 2007 (Rupees in '000)

33.

BASIC AND DILUTED EARNINGS PER SHARE PRE TAX

Profit before taxation

21,886,740

22,526,311

(Number of shares) Weighted average number of shares outstanding during the year 628,276,843 628,276,843

(Rupees) Basic and diluted earnings per share - pre tax 34.84 (Rupees in '000) 34. BASIC AND DILUTED EARNINGS PER SHARE AFTER TAX Profit after taxation 15,323,227 16,441,670 35.85

(Number of shares) Weighted average number of shares outstanding during the year 628,276,843 628,276,843

(Rupees) Basic and diluted earnings per share - after tax 24.39 (Rupees in '000) 35. CASH AND CASH EQUIVALENTS Cash and balances with treasury banks Balances with other banks 6 7 39,631,219 4,106,526 43,737,745 (Number) 36. STAFF STRENGTH Permanent Temporary/on contractual basis Bank's own staff strength at the end of the year Outsourced Total staff strength 10,488 107 10,595 3,482 14,077 9,985 95 10,080 3,600 13,680 39,683,883 3,867,591 43,551,474 26.17

37.

DEFINED BENEFIT PLANS AND OTHER BENEFITS A) MCB Bank Limited (Holding Company) 37.1 General description The Bank operates the following retirement benefits for its employees: - Pension fund (final salary plan) - funded - Benevolent scheme - unfunded - Post retirement medical benefits - unfunded - Employees compensated absence - unfunded 37.2 Principal actuarial assumptions The latest actuarial valuations of the approved pension fund, employees' contributory benevolent scheme, post retirement medical benefits and employee's compensated absences were carried out at December 31, 2008. The principal actuarial assumptions used are as follows:

Approved pension fund 2008 (%) Valuation discount rate Expected rate of return on plan assets Salary increase rate Indexation in pension Medical cost inflation rate Exposure inflation rate 13 13 10 2007 (%) 10 10 7 -

Employees' contributory benevolent scheme 2008 2007 (%) (%) 13 10 10 7 -

Post retirement medical benefits 2008 2007 (%) (%) 13 10 8 3 10 7 5 3

Employees' compensated absences 2008 2007 (%) (%) 13 10 -

The expected return on plan assets is based on the market expectations and depends on the asset portfolio of the Bank, at the beginning of the period, for returns over the entire life of the related obligation. 37.3 (Receivable from) / payable to defined benefit plans and other benefits Employees' contributory Post retirement medical Employees' compensated benevolent scheme benefits absences 2008 2007 2008 2007 2008 2007 2008 2007 -----------------------------------------------------------------------------(Rupees in '000)----------------------------------------------------------------------------Approved pension fund

Note

Present value of defined benefit obligations Fair value of plan assets Net actuarial gains / (losses) not recognized Unrecognized negative past service cost Unrecognized transitional liability Unrecognized past service cost Net (receivable) / payable recognized as at the year-end 37.5 37.6 4,295,986 (15,953,712) 6,258,707 4,747,389
(25,095,113)

300,162 (25,716) -

355,340 (73,321) -

1,269,622 71,952 67,415 (8,576)

1,422,918 (51,753) 101,123 (17,153)

752,947 -

974,464 -

9,696,677 -

(5,399,019)

(10,651,047)

274,446

282,019

1,400,413

1,455,135

752,947

974,464

The effect of increase of one percent and the effect of a decrease of one percent in the medical trend rates on the present value of medial obligation at December 31, 2008 would be Rs. 67.690 million (2007: Rs. 67.690 million) and Rs. 51.799 million (2007: Rs. 56.567 million) respectively. 37.4 Movement in balance (receivable) / payable Opening balance of (receivable) / payable Expense recognized Refunds / (contributions) during the year - Employees' contribution - Bank's contribution / benefits paid Closing balance of (receivable) / payable (5,399,019)
(10,651,047)

(10,651,047) 37.8 (5,399,319) 10,651,347 -

(4,881,483) (5,769,564)

282,019 48,384

264,542 60,094

1,455,135 98,739

1,443,450 145,388

974,464 (75,692)

1,023,683 100,729

(55,957) 274,446

(42,617) 282,019

(153,461) 1,400,413

(133,703) 1,455,135

(145,825) 752,947

(149,948) 974,464

37.5

Reconciliation of the present value of the defined benefit obligations Approved pension fund Note 2008 Present value of obligation as at January 01, Current service cost Interest cost Benefits paid Past service cost - vested Past service cost - non-vested Retrenchment loss Curtailment gain Actuarial (gains) / losses Present value of obligation as at December 31, Employees' contributory Post retirement medical Employees' compensated benevolent scheme benefits absences 2007 2008 2007 2008 2007 2008 2007 ------------------------------------------(Rupees in '000)-----------------------------------------4,752,693 45,266 348,810 (725,229) 325,849 4,747,389 355,340 13,769 35,533 (69,735) 332,677 9,698 29,941 (77,944) 60,968 355,340 1,422,918 17,555 142,292 (153,461) (159,682) 1,269,622 1,345,357 20,580 121,082 (133,703) 11,556 17,153 40,893 1,422,918 974,464 1,023,683 (149,948)

4,747,389 34,639 371,093 (689,440) (167,695) 4,295,986

(145,825)

(34,745) 300,162

(75,692) 752,947

100,729 974,464

37.6

Changes in fair values of plan assets Net assets as at January 01, Expected return on plan assets Interest on borrowing from MCB Bank Limited - Main Branch Contributions - Bank Contributions - Employees Benefits paid Actuarial gain / (loss) Net assets as at December 31, 25,095,113 2,675,699 (10,651,347) (689,440) (476,313) 15,953,712 14,810,557 1,508,469 (193,167) (725,229) 9,694,483 25,095,113 55,957 13,778 (69,735) 20,650 1,859 42,617 14,347 (77,944) (1,529) -

37.10

37.7 37.8

Fair value of the Bank's shares held by the Pension Fund as at December 31, 2008 amounted to Rs. 1,213.610 million (2007: Rs. 20,233.013 million). Charge for defined benefit plans and other benefits The following amounts have been charged to the profit and loss account in respect of defined benefit plans and other benefits: Approved pension fund 2008 Current service cost Interest cost Expected return on plan assets Interest on borrowing from MCB Bank Limited - Main Branch Net actuarial (gain) / loss recognized Contributions employees Retrenchment loss recognized Amortization of transitional liability Recognized past service cost Recognized negative past service cost Recognized transitional liability Curtailment gain 34,639 371,093 (2,675,697) (3,129,354) (5,399,319) Employees' contributory Post retirement medical Employees' compensated benevolent scheme benefits absences 2007 2008 2007 2008 2007 2008 2007 ------------------------------------------(Rupees in '000)-----------------------------------------45,266 13,769 9,698 17,555 20,580 348,810 35,533 29,941 142,292 121,082 (1,508,469) (1,859) 193,167 (4,848,338) (5,769,564)

12,859 36,661 (35,977) 25,877 (75,692) 100,729 (13,777) (14,347) 8,577 11,556 (33,708) (33,707) 48,384 60,094 98,739 145,388 (75,692) 100,729 The effect of increase of one percent and the effect of a decrease of one percent in the medical trend rates on the aggregate of the current service cost and interest cost components of net period post - employment medical costs would be Rs. 7.316 million (2007: Rs. 7.578 million) and Rs. 6.056 million (2007: Rs. 6.276 million) respectively.

37.9

Actual return on plan assets Employees' contributory Post retirement medical Employees' compensated benevolent scheme benefits absences 2007 2007 2007 2007 2008 2008 2008 2008 ---------------------------------------------------------------------(Rupees in '000)--------------------------------------------------------------------Actual return on plan assets 2,199,386 11,202,952 330 Approved pension fund

37.10 Composition of fair value of plan assets Approved Pension Fund 2008 Fair value (Rupees in '000) Defence saving certificates Term deposit receipts Listed equity shares Open ended mutual funds units Cash and bank balances Fair value of plan total assets Borrowing Fair value of plan net assets 4,580,964 8,306,121 1,877,187 89,072 1,100,368 15,953,712 15,953,712 Percentage (%) 28.71 52.06 11.77 0.56 6.90 100 Fair value (Rupees in '000) 4,810,576 21,778,377 119,872 48,157 26,756,982 (1,661,869) 25,095,113 2007 Percentage (%) 17.98 81.39 0.45 0.18 100

37.11 Other relevant details of above funds are as follows: 37.11.1 Pension Fund Present value of defined benefit obligation Fair value of plan assets (Surplus) / deficit Actuarial gain / (loss) on obligation Experience adjustment Assumptions gain / (loss) 2007 2006 2005 2004 2008 --------------------------------(Rupees in '000)-------------------------------4,295,986 (15,953,712) (11,657,726) 4,747,389 (25,095,113) (20,347,724) 4,752,693 (14,810,557) (10,057,864) 5,503,819 (10,554,024) (5,050,205) 6,542,624 (7,034,175) (491,551)

167,695 167,695

(325,849) (325,849)

54,320 54,320

(304,748) 172,866 (131,882)

(141,338) (141,338)

Actuarial gain / (loss) on assets Experience adjustment Assumptions gain / (loss)

(476,313) (476,313)

9,694,483 9,694,483

4,634,045 4,634,045

5,268,939 (138,502) 5,130,437

(254,840) (254,840)

37.11.2 Employees' Contributory Benevolent Scheme Present value of defined benefit obligation Fair value of plan assets 300,162 300,162 355,340 355,340 332,677 (20,650) 312,027 407,569 (18,976) 388,593 362,104 (18,126) 343,978

Actuarial gain / (loss) on obligation Experience adjustment Assumptions gain / (loss)

34,745 34,745

(60,968) (60,968)

10,182 10,182

(228,823) 107,003 (121,820)

(22,609) (22,609)

Actuarial gain / (loss) on assets Experience adjustment Assumptions gain / (loss)

(1,529) (1,529)

(34) (34)

(1) (418) (419)

2 2

37.11.3 Post Retirement Medical Benefits Present value of defined benefit obligation Fair value of plan assets 1,269,622 1,269,622 1,422,918 1,422,918 1,345,357 1,345,357 1,456,392 1,456,392 1,121,548 1,121,548

Actuarial gain / (loss) on obligation Experience adjustment Assumptions gain / (loss)

159,682 159,682

(40,893) (40,893)

36,153 36,153

8,743 (21,846) (13,103)

37.11.4 Compensated absences Present value of defined benefit obligation Fair value of plan assets 752,947 752,947 75,692 974,464 974,464 (100,729) 1,023,683 1,023,683 856,213 856,213 603,624 603,624 -

Actuarial gain / (loss) on obligation

37.12 No contribution to the pension fund is expected in the next future year. B) MNET Services (Private) Limited The company operates an unfunded gratuity scheme for its eligible employees. Provision is made annually on the basis of last drawn basic salaries of eligible employees and the number of completed years of service. 38. 38.1 DEFINED CONTRIBUTION PLAN MCB Bank Limited (holding company) The Bank operates an approved contributory provident fund for 8,955 (2007: 6,201) employees where contributions are made by the Bank and employees at 8.33% per annum (2007: 8.33% per annum) of the basic salary. During the year, the Bank contributed Rs. 135.164 million (2007: Rs. 109.778 million) in respect of this fund. The Bank also operates an approved non-contributory provident fund for 2,284 (2007: 2,875) employees who have opted for the newscheme, where contributions are made by the employees at 12% per annum (2007: 12% per annum) of the basic salary. 38.2 MCB Asset Management Company Limited (subsidiary company) MCB Asset Management Company operates a recognized contribution fund for the permanent employees of the company. Contribution at the rate of 8.66% of the basic salary per annum are made both by the Company and employees to the fund. 38.3 Muslim Commercial Financial Services (Private) Limited (subsidiary company) The company operates the provident fund scheme covering all permanent employees. Contribution at the rate of 8.33% per annum are made both by the Company and employees to the fund.

39.

COMPENSATION OF DIRECTORS AND EXECUTIVES The aggregate amount charged in the financial statements for compensation, including all benefits, to the Chief Executive, Directors and Executives of the Group was as follows:

President / Chief Executive 2008 2007 2008

Directors 2007 2008

Executives 2007

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

Fees Managerial remuneration Bonus and others Retirement benefits Rent and house maintenance Utilities Medical Conveyance

27,016 12,800 2,161 11,669 2,593 82 56,321

15,117 63,212 1,259 6,803 1,512 260 413 88,576

3,630 3,630

720 1,524 2,244

606,993 269,399 111,983 220,802 48,582 16,909 184,936 1,459,604

409,807 331,016 33,015 184,415 42,044 19,696 65,099 1,085,092

Number of persons

10

10

532

505

The Chief Executive and certain executives are provided with free use of the Group's maintained cars and household equipments in accordance with the terms of their employment.

40.

FAIR VALUE OF FINANCIAL INSTRUMENTS The fair value of traded investments is based on quoted market prices, except for tradable securities classified by the Bank as 'held to maturity'. Fair value of unquoted equity investments is determined on the basis of break up value of these investments as per the latest available audited financial statements. Fair value of fixed term loans, other assets, other liabilities and fixed term deposits cannot be calculated with sufficient reliability due to absence of current and active market for such assets and liabilities and reliable data regarding market rates for similar instruments. The provision for impairment of loans and advances has been calculated in accordance with the Bank's accounting policy as stated in note 5.3 these financial statements. The maturity and repricing profile and effective rates are stated in notes 44.3, 44.4.1 and 44.4.2 respectively. In the opinion of the management, the fair value of the remaining financial assets and liabilities are not significantly different from their carrying values since assets and liabilities are either short-term in nature or in the case of customer loans and deposits are frequently re-priced.

41.

SEGMENT DETAILS WITH RESPECT TO BUSINESS ACTIVITIES The segment analysis with respect to business activity is as follows: Corporate Finance Retail & Commercial Asset Eliminations Total Consumer Banking Management Banking --------------------------------------------------(Rupees in '000)--------------------------------------------------------Trading and Sales

2008 Total income Total expenses Income tax expense Net income Segment assets - (Gross of NPL's provision) Provision for taxation Total assets Segment non performing loans Segment specific provision required Segment liabilities Deferred tax liability Total liabilities - net Segment return on net assets (ROA) (%) Segment cost of fund (%) 2007 Total income Total expenses Income tax expense Net income Segment assets - (Gross of NPL's provision) Total assets Segment non performing loans Segment specific provision required Segment liabilities Provision for taxation Deferred tax liability Total liabilities - net Segment return on net assets (ROA) (%) Segment cost of fund (%) 217,784 (23,535) 194,249 11,824,946 (1,576,724) 10,248,222 17,124,838 (14,282,167) 2,842,671 10,219,336 (1,054,429) 9,164,907 153,014 (76,752) 76,262 (10,395) 10,395 39,529,523 (17,003,212) (6,084,641) 16,441,670 83,793 (33,109) 50,684 10,524,180 (3,673,800) 6,850,380 19,654,410 (19,307,052) 347,358 15,905,084 (1,333,657) 14,571,427 210,289 (143,398) 66,891 (367,560) 367,560 46,010,196 (24,123,456) (6,563,513) 15,323,227

114,648,895 114,648,895

152,526,314 152,526,314

188,080,852 188,080,852

397,706 397,706

(523,939) (523,939)

455,129,828 51,819 455,181,647

107,373,831 107,373,831

7,529,468 4,078,564 117,913,020 117,913,020

10,739,409 5,817,325 159,937,095 159,937,095

13,323 13,323

18,268,877 9,895,889 384,713,330 440,295 385,153,625

(523,939) (523,939)

5.98% 4.16%

0.23% 2.97%

7.99% 3.72%

3.44% 3.01%

24,007 24,007

124,876,452 124,876,452

160,964,085 160,964,085

134,507,060 134,507,060

377,603 377,603

(521,413) (521,413)

420,227,794 420,227,794

109,653,757 109,653,757

5,567,247 3,803,244 127,275,792 127,275,792

5,158,061 3,523,709 116,391,633 116,391,633

21,321 21,321

10,725,308 7,326,953 352,821,090 1,348,843 1,183,586 355,353,519

(521,413) (521,413)

8.21% 5.38%

1.81% 2.11%

7.00% 2.77%

20.20% -

3.98% 2.24%

42.

RELATED PARTY TRANSACTIONS AND BALANCES The Group has related party relationship with its associated undertakings, employee benefit plans and its key management personnel (including their associates) and companies with common directors. The detail of investment in associated undertakings are stated in Annexure I (note 7) to these financial statements. Transactions between the Group and its related parties are carried at arm's length basis under the comparable uncontrolled price method. Details of loans and advances to the companies or firms in which the directors of the Group are interested as directors, partners or in case of private companies as members, are given in note 10.6 to these financial statements. There are no transactions with key management personnel other than under their terms of employment. Contributions to and accruals in respect of staff retirement and other benefit plans are made in accordance with the actuarial valuation / terms of the contribution plan as disclosed in notes 37 and 38. Remuneration to the executives and disposals of vehicles are disclosed in noted 39 and Annexure IV to these financial statements respectively.

Directors Associated companies Other related parties 2007 2007 2007 2008 2008 2008 -----------------------------------------------------------------(Rupees in '000)------------------------------------------------------------A. Balances Deposits Deposits at beginning of the year Deposits received during the year Deposits repaid during the year Deposits at end of the year Mark-up expense on deposits Mark-up rates on deposits range from 5.0% to 12% (2007: 0.1% to 6.75%) per annum. Advances (secured) Balance at beginning of the year Loans granted during the year Repayments received during the year Balance at end of the year Income on advances B. Other transactions (including profit and loss related transactions) 1,661,869 524,153 (2,186,022) 2,240,038 1,442,020 (2,020,189) 1,661,869 193,167 17,980 10,910,613 (10,502,695) 425,898 12 19,099 447,772 (448,891) 17,980 1 275,826 302,979,123 (302,953,020) 301,929 81,271 522,641 124,757,792 (125,004,607) 275,826 42,703 209,716 50,640,762 (43,789,846) 7,060,632 7 314,045 14,776,866 (14,881,195) 209,716 -

Directors Associated companies Other related parties 2008 2007 2008 2007 2008 2007 -----------------------------------------------------------------(Rupees in '000)------------------------------------------------------------Associates Adamjee Insurance Company Limited - Insurance premium paid - net of refund - Insurance claim settled - Rent income received - Dividend received - Share of profit - net of tax under equity basis of accounting - Share of deficit on revaluation of assets - net of tax Other related parties MCB Employees Security System and Services (Private) Limited - Security guard expenses MCB Employees Foundation - Stationery expenses - Service expenses - Cash sorting expenses - Cash in transit expenses - Proceeds from sale of car - Gain on sale of car Others Dividend income Proceeds from sale of vehicles to key management personnel Gain on sale of vehicles to key management personnel Remuneration of key management personnel (other than directors) Contribution / (expense) to provident fund Other miscellaneous expenses

85,524 84,613 7,424 89,340 5,679 682,007

67,866 65,260 2,147 98,274 1,207,864 91,983

126,237

115,718

118,212 17,461 17,169 4,475 -

140,009 19,641 16,603 3,474 611 4

196,105 11,537 267 162,482 135,164 76,725

182,664 5,987 583 148,850 109,778 69,263

The details of director's compensations are given in note 39 to these financial statements.

43.

CAPITAL ADEQUACY 43.1 Capital Management Objectives and goals of managing capital The objectives and goals of managing capital of the Group are as follows: to be an appropriately capitalized institution, as defined by regulatory authorities and comparable to the peers; maintain strong ratings and to protect the Group against unexpected events; availability of adequate capital (including the quantum) at a reasonable cost so as to enable the Group to expand; and achieve low overall cost of capital with appropriate mix of capital elements.

Statutory minimum capital requirement and management of capital The State Bank of Pakistan through its BSD Circular No.19 dated September 05, 2008 requires the minimum paid up capital (net of losses) for all locally incorporated banks to be raised to Rs. 23 billion by the year ending on December 31, 2013. The raise is to be achieved in a phased manner requiring Rs. 5 billion paid up capital (net of losses) by the end of the financial year 2008. The paid up capital of the Bank for the year ended December 31, 2008 stands at Rs. 6.2 billion and is in compliance with the SBP requirement for the said year. In addition the banks are also required to maintain a minimum capital adequacy ratio (CAR) of 9 % of the risk weighted exposure. The Group's CAR as at December 31, 2008 was 16.06 % of its risk weighted exposure. Groups regulatory capital is analysed into two tiers. Tier 1 capital, which includes fully paid up capital (including the bonus shares), balance in share premium account, general reserves as per the financial statements and net unappropriated profits, etc after deductions for deficit on revaluation of available for sale investments and 50% deduction for investments in the equity of subsidiary companies and significant minority investments in entities engaged in banking and financial activities. Tier 2 capital, which includes general provisions for loan losses (up to a maximum of 1.25 % of risk weighted assets), reserves on revaluation of fixed assets and equity investments up to a maximum of 45 % the balance, foreign exchange translation reserves, etc after 50% deduction for investments in the equity of subsidiary companies and significant minority investments in entities engaged in banking and financial activities.

Tier 3 capital has also been prescribed by the State Bank of Pakistan. However the Group is not eligible for the Tier 3 capital. The Capital of the Group is managed keeping in view the minimum Capital Adequacy Ratio required by SBP through BSD Circular No. 30 dated November 25, 2008. The adequacy of the capital is tested with reference to the risk-weighted assets of the Bank. The required capital adequacy ratio (9% of the risk-weighted assets) is achieved by the Group through improvement in the asset quality at the existing volume level, ensuring better recovery management and striking compromise proposal and settlement and composition of asset mix with low risk. Banking operations are categorized as either trading book or banking book and risk-weighted assets are determined according to specified requirements of the State Bank of Pakistan that seek to reflect the varying levels of risk attached to assets and off-balance sheet exposures. The total risk-weighted exposures comprise the credit risk, market risk and operational risk. The calculation of capital adequacy enables the Group to assess the long-term soundness. As the Group carry on the business on a wide area network basis, it is critical that it is able to continuously monitor the exposure across entire organisation and aggregate the risks so as to take an integrated approach/view. Maximization of the return on risk-adjusted capital is the principal basis to be used in determining how capital is allocated within the Group to particular operations or activities. The Group has complied with all externally imposed capital requirements through out the year. Further, there has been no material change in the Groups management of capital during the year.

43. Capital Adequacy Ratio Capital adequacy ratio (including corresponding figures) calculated in accordance with the BSD Circular No. 08 of 2006 dated June 27, 2006 by SBP is as follows:

CAP 1 Tier 1 Capital Fully Paid-up capital Balance in Share Premium Account Reserve for issue of Bonus Shares General Reserves as disclosed on the Balance Sheet Unappropriated profits Minority interest Sub-Total Deductions: Book value of Goodwill Shortfall in provisions required against classified assets irrespective of any relaxation allowed. Deficit on account of revaluation of investments held in AFS category Any increase in equity capital resulting from a securitization transaction Investments in TFCs of other banks exceeding the prescribed limit Other deductions (50% of the amount as calculated on CAP 2) Sub-Total Total eligible Tier 1 capital Supplementary Capital Tier 2 Capital General Provisions or general reserves for loan losses-up to maximum of 1.25% of Risk Weighted Assets Revaluation Reserves up to 45% Foreign Exchange Translation Reserves Undisclosed reserves Subordinated debt -upto maximum of 50% of Total eligible Tier 1 capital Total tier 2 Capital Deductions: Other deductions (50% of the amount as calculated on CAP 2) Total Deductions Total eligible Tier 2 Capital Tier 3 Capital (eligible for market risk only) Actual Tier 3 Capital Eligible Tier 3 Capital Total Supplementary Capital eligible for capital adequacy ratio (Maximum upto 100% of Total eligible Tier 1 capital) Total Eligible Capital Risk Weighted Amounts Total Credit Risk Weighted Amount Total Market Risk Weighted Amount Total Operational Risk Weighted Amount Total Risk Weighted Amount Capital Adequacy Ratios Credit Risk Capital Adequacy Ratio Tier 1 Capital to Total Risk Weighted Amount TOTAL CAPITAL ADEQUACY RATIO CAP 2 OTHER DEDUCTIONS FROM TIER 1 AND TIER 2 CAPITAL Investments in equity and other regulatory capital of majority owned securities or other financial subsidiaries not consolidated in the balance sheet Significant minority investments in banking, securities and other financial entities Equity holdings (majority or significant minority) in an insurance subsidiary Significant minority and majority investments in commercial entities exceeding 15% of bank's capital Securitization exposure subject to deduction Others

2008 2007 -------(Rupees in '000) ------6,282,768 9,702,528 26,877,551 11,065,723 69 53,928,639 60,952 1,374,912 1,435,864 52,492,775 6,282,768 9,702,528 24,340,091 7,054,472 63 47,379,922 60,952 408,347 1,843,990 2,313,289 45,066,633

815,966 946,495 192,242 1,954,703 1,374,912 1,374,912 579,791

3,445,321 4,633,781 (41,692) 8,215,329 1,843,990 1,843,990 6,371,339

579,791 53,072,566

6,371,339 51,437,972

253,707,454 21,886,080 54,778,112 330,371,646

236,475,368 25,622,096 46,174,508 308,169,932

20.92% 15.89% 16.06%

21.75% 14.62% 16.69%

2,749,824 -

3,687,980 -

Total Deductible Items to be deducted 50% from Tier 1 capital and 50% from Tier 2 capital

2,749,824

3,687,980

44.

RISK MANAGEMENT Identifying and managing exposure to risk is an integral part of our strategic and operational activities. Our risk management policy is aimed at setting the best course of action under uncertainty by identifying, measuring, prioritizing, monitoring and managing risks. With the goal of enhancing shareholders value, major objectives of our robust risk management structure are as follows. In line with the corporate goal, mission and strategy, banks risk exposure is maintained within the risk appetite of the stakeholders as defined by the Board of Directors; Business decisions optimize the risk-return trade-off; Sufficient capital is always available as a buffer to absorb risk and our risk management approach remains aligned with the regulatory requirements, international best practices and our policy / framework. Keeping in view the dynamics of internal and external environment, we regularly review and update our policy / framework and procedures in accordance with domestic regulatory environment and international standards. Our risk management structure is established in line with international best practices. The risk management framework is based on prudent risk identification, measurement, monitoring and management processes which are closely aligned with all activities of the bank so as to ensure that risks are kept within an acceptable level. Independent of the business groups, the Chief Risk Officer (CRO) has direct functional reporting line to the Risk Management and Portfolio Review Committee (RM&PRC) of the Board of Directors, with administrative reporting to the President / CEO. The Risk Management and Portfolio Review Committee is convened regularly to evaluate banks risk exposure in relation to the risk appetite / benchmarks, portfolio concentrations, etc. The Risk Management Group is structured as follows, with the respective Heads of these departments having direct reporting lines to the CRO. Credit Review o o Commercial Corporate

Credit Risk Management Market Risk Management Operational Risk Management Basel-II Project Credit Risk Control (Credit Administration) o o North South

44.1 Credit Risk Credit risk makes up the largest part of the Banks exposure. The purpose of credit risk function is to identify, measure, manage, monitor and mitigate credit risk. Organizational structure for this function ensures pre and post-fact management of credit risk. While Credit Review function provides pre-fact evaluation at counterparty level; Credit Risk Control (Credit Administration) function performs the role of custodian of collateral and provides expertise for completion of legal documentation, etc. The Bank has adopted the Standardized approach to Credit Risk for regulatory capital calculation in compliance with Basel-II requirements. As a medium-term goal, we intend to graduate to the Foundation Internal Ratings Based approach and have made significant progress in this direction. The basic guiding principles for management of credit risk at MCB are as follows. Individuals who take or manage risks clearly understand them in order to protect the Bank from avoidable risks; All approvals of credit facilities to counterparties are subject to pre-fact independent review; All enhancements and material changes in credit facilities are subject to independent pre-fact review; Approval and review process is independently reviewed by the Risk Management and Portfolio Review Committee (RM&PRC) of the Board of Directors and Internal Audit; Management periodically reviews the powers of credit approving and credit reviewing authorities; Credit approval and review decisions of authorized personnel are independently reviewed by one level higher authority on sample basis as part of a process of hindsight review. New initiatives Portfolio management function has been strengthened in order to identify portfolio concentrations and Probability of Default estimation exercise has been initiated which will take the bank towards adopting Foundation Internal Ratings Based approach as defined under Basel-II. Portfolio management function has been strengthened in order to identify portfolio concentrations and A regular portfolio review process of corporate clients has also been initiated to evaluate the performance of major industry sectors in the wake of latest macroeconomic changes. Concentration of credit and deposits Out of the total financial assets of Rs. 414,632.155 million (2007: Rs. 381,037 million) the financial assets which are subject to credit risk amounting to Rs. 403,250.563 million (2007: Rs. 369,575 million). To manage credit risk the bank applies credit limits to its customers and obtains adequate collaterals. Investments amounting to Rs. 86,198 million (2007: Rs. 97,047 million) are guaranteed by the Government of Pakistan. In addition, an amount of Rs. 21,854 million (2007: Rs. 24,517 million) are held by the Bank with the State Bank of Pakistan and central banks of other countries.

44.1.1

Segmental information Segmental Information is presented in respect of the class of business and geographical distribution of advances (gross), deposits, contingencies and commitments. 2008 Contingencies and Advances (Gross) Deposits commitments (Rupees Percent (Rupees Percent (Rupees Percent in '000) (%) in '000) (%) in '000) (%) Segments by class of business Agriculture, forestry, hunting and fishing Mining and quarrying Textile Chemical and pharmaceuticals Cement Sugar Footwear and leather garments Automobile and transportation equipment Electronics and electrical appliances Construction Power (electricity), gas, water, sanitary Wholesale and Retail Trade Exports / imports Transport, storage and communication Financial Insurance Services Individuals Others 10,414,918 1,670,510 35,240,763 13,931,176 4,986,099 6,490,201 2,023,653 2,422,517 2,768,742 48,480,574 24,867,705 33,182,312 10,490,556 200,000 4,121,252 32,721,115 39,208,592 273,220,685 3.81 0.61 12.90 5.10 1.82 2.38 0.74 0.89 1.01 17.74 9.10 12.14 3.84 0.07 1.51 11.98 14.36 100 34,461,318 254,075 1,381,008 1,160,792 17,454 663,341 142,938 292,281 319,654 532,842 47,715,623 358,139 6,531,092 2,593,403 49,397,748 153,817,203 30,606,169 330,245,080 2007 Advances (Gross) (Rupees Percent in '000) (%) Agriculture, forestry, hunting and fishing Mining and quarrying Textile Chemical and pharmaceuticals Cement Sugar Footwear and leather garments Automobile and transportation equipment Electronics and electrical appliances Construction Power (electricity), gas, water, sanitary Wholesale and Retail Trade Exports / imports Transport, storage and communication Financial Insurance Services Individuals Others 2,023,407 256,233 35,741,728 8,061,429 5,310,127 5,936,493 2,063,300 480,156 1,681,402 14,837,745 22,838,333 183,913 11,370,208 15,369,157 200,000 3,796,219 31,855,010 67,727,200 229,732,060 0.88 0.11 15.56 3.51 2.31 2.58 0.90 0.21 0.73 6.46 9.94 0.08 4.95 6.69 0.09 1.65 13.87 29.48 100 Deposits (Rupees Percent in '000) (%) 33,955,983 232,217 1,331,384 787,584 152,889 439,663 324,337 130,494 78,700 1,992,295 37,318,876 2,420,960 8,691,403 1,847,660 4,136,923 136,928,992 61,317,987 292,088,347 2008 Advances (Rupees Percent in '000) (%) Deposits (Rupees Percent in '000) (%) Contingencies and commitments (Rupees Percent in '000) (%) 11.63 0.08 0.46 0.27 0.05 0.15 0.11 0.04 0.03 0.68 12.78 0.83 2.98 0.63 1.42 46.88 20.99 100 Contingencies and commitments (Rupees Percent in '000) (%) 1,785,793 66,491 7,250,420 3,448,972 1,090,783 23,717 974,005 583,265 1,219,191 1,672,359 7,015,754 1,158,025 154,620,283 32,408,049 213,317,107 0.84 0.03 3.40 1.62 0.51 0.01 0.46 0.27 0.57 0.78 3.29 0.54 72.48 15.19 100 10.44 0.08 0.42 0.35 0.01 0.20 0.04 0.09 0.10 0.16 14.45 0.11 1.98 0.79 14.96 46.56 9.26 100 679,404 8,899,509 7,126,392 5,203,675 2,500,375 491,410 2,407,819 2,494,184 3,132,122 6,842,007 8,818,563 167,324,013 2,147,720 48,184,105 266,251,298 0.26 3.34 2.68 1.95 0.94 0.18 0.90 0.94 1.18 2.57 3.31 62.84 0.81 18.10 100

44.1.1.1

44.1.1.2

Segment by sector Public / Government Private 60,292,476 212,928,209 273,220,685 22.07 77.93 100 16,144,540 314,100,540 330,245,080 2007 Advances (Rupees Percent in '000) (%) Public / Government Private 27,212,441 202,519,619 229,732,060 11.85 88.15 100 Deposits (Rupees Percent in '000) (%) 14,793,604 277,294,743 292,088,347 5.06 94.94 100 Contingencies and commitments (Rupees Percent in '000) (%) 35,552,582 177,764,525 213,317,107 16.67 83.33 100 4.89 95.11 100 61,587,937 204,663,361 266,251,298 23.13 76.87 100

44.1.1.3 Details of non-performing advances and specific provisions by class of business segment 2007 Specific Classified Specific Provision Advances Provision Held Held ---------------------------(Rupees in '000)--------------------------446,712 25,889 2,311,466 59,967 304 135,490 91,361 42,522 518,597 55,999 3,727 2,165,778 288,582 59,512 118,729 180,636 732,184 2,658,434 9,895,889 267,996 17,741 1,279,026 21,800 750 20,572 71,301 3,461 132,910 85,057 1,884 4,823,241 354,637 34,967 53,159 288,365 783,526 2,484,915 10,725,308 58,282 15,988 970,589 21,676 750 20,572 61,381 1,881 132,910 74,338 1,884 2,712,213 341,318 21,662 53,159 214,851 479,321 2,144,178 7,326,953 2008

Classified Advances

Agriculture, forestry, hunting and fishing Mining and quarrying Textile Chemical and pharmaceuticals Cement Sugar Footwear and leather garments Automobile and transportation equipment Electronics and electrical appliances Construction Power (electricity), gas, water, sanitary Wholesale and retail trade Exports / imports Transport, storage and communication Financial Services Individuals Others

912,008 40,584 2,921,409 117,807 304 387,854 107,162 116,026 557,891 79,761 4,324 3,147,146 318,339 72,875 2,094,479 295,928 1,444,105 5,650,875 18,268,877

44.1.1.4 Details of non-performing advances and specific provisions by sector Public/ Government Private 18,268,877 18,268,877 9,895,889 9,895,889 10,725,308 10,725,308 7,326,953 7,326,953

44.1.1.5 Geographical segment analysis 2008 Profit before taxation Contingencies and Commitments ---------------------------(Rupees in '000)--------------------------430,301,251 4,988,327 9,996,180 445,285,758 2007 Profit before taxation Contingencies and Commitments ---------------------------(Rupees in '000)--------------------------402,341,635 3,415,330 7,143,876 412,900,841 57,377,243 113,176 56,903 57,547,322 209,721,347 2,045,760 1,550,000 213,317,107 Total assets employed Net assets employed 59,735,146 246,259 150,728 60,132,133 259,953,518 3,066,685 3,231,095 266,251,298 Total assets employed Net assets employed

Pakistan Asia Pacific (including South Asia) Middle East

21,487,087 249,355 150,298 21,886,740

Pakistan Asia Pacific (including South Asia) Middle East

22,346,198 123,733 56,380 22,526,311

Total assets employed include intra group items of Rs. NIL (2007: Rs. NIL).

44.2

Market Risk Management The Bank is exposed to interest rate risk, foreign exchange risk and equity price risk. The Bank is using in-house and vendor based solutions for calculating mark to market value of its positions and generating VaR (value at risk) and sensitivity numbers. Besides conventional methods, the Bank is using VaR for market risk assessment of assets booked by treasury and capital market groups. The Bank is using variance co-variance approach of VaR measure for conventional products and Monte Carlo simulation approach for derivative and structured products. Further stress testing of both banking and trading books are performed in line with SBP guidelines. The Bank is exposed to interest rate risk both in trading and banking books. Presently the market risk reporting system is generating risk numbers of government securities held by the Banks treasury. The risk management system generates daily reports based upon the marked to market of these assets. These reports provide risk numbers i.e. duration, PVBP, and VaR on individual security basis. The system also generates summarized reports on portfolio basis. These reports are presented to the senior management for review on a daily basis.

44.2.1

Foreign Exchange Risk Management The core objective of foreign exchange risk management is to ensure the foreign exchange exposure of the Bank remain within defined risk appetite (15% of paid up capital). Further, gap limits have been introduced for USD exposures. We are in the process of introducing gap limits for other major currencies depending on the significance of exposures in the respective currencies. Daily reports are generated to evaluate the exposure in different currencies. Further risk management system generates VaR and PVBP numbers for foreign exchange portfolio to estimate the potential loss under normal conditions. Stress testing of foreign exchange portfolio is also performed and reported to senior management. All these activities are performed on a daily basis. 2008 Net foreign currency exposure ---------------------------(Rupees in '000)--------------------------Pakistan Rupee United States Dollar Pound Sterling Japanese Yen Euro Other currencies 428,252,703 15,326,446 396,816 118,906 1,079,049 111,838 445,285,758 398,296,916 (9,314,526) (1,260,620) (282) (2,566,438) (1,425) 385,153,625 2007 Assets Net foreign currency exposure ---------------------------(Rupees in '000)--------------------------344,604,249 8,051,477 1,073,197 173 1,624,423 355,353,519 7,291,655 (8,154,730) 901,837 (130,985) 100,924 (8,701) 57,083,578 302,895 57,338 (1,489) 16,501 88,499 57,547,322 Liabilities Off-balance sheet items 3,852,581 (6,146,330) 876,926 (83,472) 1,500,295 33,808,368 18,494,642 2,534,362 35,716 5,145,782 113,263 60,132,133 Assets Liabilities Off-balance sheet items

Pakistan Rupee United States Dollar Pound Sterling Japanese Yen Euro Other currencies

394,396,172 16,509,102 228,698 129,669 1,540,000 97,200 412,900,841

44.2.2

Equity Price Risk Equity price risk is managed by applying trading limit, scrip-wise and portfolio wise nominal limits. VaR numbers generation and stress testing of the equity portfolio are also performed and reported to senior management on daily basis.

44.3

Mismatch of Interest Rate Sensitive Assets and Liabilities Yield / interest rate sensitivity position for on-balance sheet instruments is based on the earlier of contractual re-pricing or maturity date and for off-balance sheet instruments is based on settlement date. 2008 Exposed to Yield/ Interest risk Over 1 Over 3 Over 6 Over 1 Over 2 Over 3 Over 5 Above to 3 to 6 months to to 2 to 3 to 5 to 10 10 years months months 1 year years years years years -----------------------------------------------------------------------------------------(Rupees in '000)----------------------------------------------------------------------------------------Up to 1 month

Effective Yield/ Interest rate On-balance sheet financial instruments Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments - net Advances - net Other assets - net Liabilities Bills payable Borrowings Deposits and other accounts Other liabilities On-balance sheet gap Off-balance sheet financial instruments Forward Outright purchase - Govt. securities Foreign exchange contracts Purchase Interest rate swaps - long position Cross currency swaps - long position

Total

Not exposed to Yield/ Interest Risk

0.90% 1.20% 15.75% to 21% 6% to 17.56% 18.00%

39,631,219 4,106,526 4,100,079 95,215,602 262,508,830 9,069,899 414,632,155 10,551,468 22,663,840 330,245,080 8,876,321 372,336,709 42,295,446

1,950,742 759,437 4,100,079 35,024,737 157,504,642 199,339,637 9,086,591 160,598,414 169,685,005 29,654,632

45,481,121 52,502,094 97,983,215 7,918,373 17,007,818 24,926,191 73,057,024

4,980,612 39,376,570 44,357,182 5,658,876 11,656,112 17,314,988 27,042,194

708,396 13,125,524 13,833,920 21,055,371 21,055,371 (7,221,451)

286,557 286,557 1,325,882 1,325,882 (1,039,325)

674,063 674,063 2,083,437 2,083,437 (1,409,374)

2,459,769 2,459,769 4,050,130 4,050,130 (1,590,361)

980,996 980,996 980,996

95,823 95,823 95,823

37,680,477 3,347,089 4,523,528 9,069,899 54,620,993 10,551,468 112,467,916 8,876,321 131,895,705 (77,274,712)

15.50% 5 % to 9.5 %

26,644,450 69,708,932 2,144,130 173,127 98,670,639 67,476,228 266,667 173,127 20,827,530 88,743,552 9,927,087

26,644,450 21,618,865 48,263,315 21,427,005

35,282,618 1,977,463 37,260,081 19,037,097 100,000

12,794,158 12,794,158 19,365,275

13,291 13,291 7,629,100

166,667 166,667 17,751 166,667

173,127 173,127 173,127

Foreign exchange contracts Sale Interest rate swaps - short position Cross currency swaps - short position Forward Outright sale - Govt securities Off-balance sheet gap Total yield / interest risk sensitivity gap Cumulative yield / interest risk sensitivity gap

20,827,530 42,254,535 6,008,780 35,663,412 35,663,412

19,137,097 18,122,984 91,180,008 126,843,420

19,365,275 (6,571,117) 20,471,077 147,314,497

7,629,100 (7,615,809) (14,837,260) 132,477,237

184,418 (17,751) (1,057,076) 131,420,161

173,127 (1,409,374) 130,010,787

(1,590,361) 128,420,426

980,996 129,401,422

95,823 129,497,245

44.3

Mismatch of Interest Rate Sensitive Assets and Liabilities Yield / interest rate sensitivity position for on-balance sheet instruments is based on the earlier of contractual re-pricing or maturity date and for off-balance sheet instruments is based on settlement date. 2007 Exposed to Yield/ Interest risk Over 1 Over 3 Over 6 Over 1 Over 2 Over 3 Over 5 Above to 3 to 6 months to to 2 to 3 to 5 to 10 10 years months months 1 year years years years years -----------------------------------------------------------------------------------------(Rupees in '000)----------------------------------------------------------------------------------------Up to 1 month

Effective Yield/ Interest rate On-balance sheet financial instruments Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments - net Advances - net Other assets - net Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loan Other liabilities On-balance sheet gap Off-balance sheet financial instruments Forward lendings Outright purchase - Govt. securities Foreign exchange contracts: - Purchase Interest rate swaps Cross currency swaps 4.24% 6.18% 11.20% 9.78% 10.89%

Total

Not exposed to Yield/ Interest Risk

39,683,883 3,867,591 1,051,372 112,018,133 218,959,786 5,456,732 381,037,497 10,479,058 39,406,831 292,088,347 479,232 7,698,729 350,152,197 30,885,300

534,159 631,864 51,372 21,214,364 5,964,299 3,525 28,399,583 33,027,113 161,710,432 194,737,545 (166,337,962)

1,000,000 13,498,301 27,227,275 567 41,726,143 3,300,305 4,555,291 479,232 8,334,828 33,391,315

19,138,757 49,538,582 68,677,339 606,336 3,418,892 4,025,228 64,652,111

33,051,162 61,024,392 94,075,554 12,850,476 12,850,476 81,225,078

4,033,023 17,891,332 21,924,355 2,283,975 2,283,975 19,640,380

1,267,859 17,891,332 19,159,191 1,974,594 1,974,594 17,184,597

2,345,401 35,782,665 38,128,066 2,473,077 4,354,242 6,827,319 31,300,747

4,179,487 1,455,964 5,635,451 1,842,888 1,842,888 3,792,563

1,939,961 2,183,945 4,123,906 4,123,906

39,149,724 3,235,727 11,349,818 5,452,640 59,187,909 10,479,058 99,097,557 7,698,729 117,275,344 (58,087,435)

6.56% 2.02% 11.75% to 15.75%

62,077,338 2,721,698 1,845,484 66,644,520

16,646,098 18,182 16,664,280

18,595,351 18,595,351

17,000,385 53,516 17,053,901

9,835,504 300,000 10,135,504

1,850,000 588,660 2,438,660

500,000 240,000 740,000

1,016,824 1,016,824

Foreign exchange contracts: - Sale Off-balance sheet gap Total yield / interest risk sensitivity gap

69,362,417 69,362,417 (2,717,897)

23,865,234 23,865,234 (7,200,954) (173,538,916) (173,538,916)

18,208,526 18,208,526 386,825 33,778,140 (139,760,776)

8,633,379 8,633,379 8,420,522 73,072,633 (66,688,143)

18,655,278 18,655,278 (8,519,774) 72,705,304 6,017,161

2,438,660 22,079,040 28,096,201

740,000 17,924,597 46,020,798

1,016,824 32,317,571 78,338,369

3,792,563 82,130,932

4,123,906 86,254,838

Cumulative yield / interest risk sensitivity gap 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 the financial instrument will fluctuate due to changes in the market interest rates.
Reconciliation to total assets 2008 2007 (Rupees in '000) Reconciliation to total liabilities 2008 2007 (Rupees in '000)

Balance as per balance sheet Less: Non financial assets Investments Operating fixed assets Other assets

445,285,758

412,900,841

Balance as per balance sheet Less: Non financial liabilities

385,153,625

355,353,519

2,574,789 17,320,485 10,758,329 30,653,603 414,632,155

3,340,457 16,082,781 12,440,106 31,863,344 381,037,497

Other liabilities Deferred tax liability

12,376,621 440,295 12,816,916

4,017,736 1,183,586 5,201,322

Total financial assets

Total financial liabilities

372,336,709

350,152,197

44.4

Liquidity Risk It is the policy of the Bank to maintain adequate liquidity at all times, in all geographical locations and for all currencies and hence to be in a position, in the normal course of business, to meet all our obligations, to repay depositors, to fulfill commitments to lend and to meet any other commitments made. The Bank manages liquidity risk in three stages. - Balance sheet management; - Liquidity management; and - Intraday liquidity management. Balance sheet management Balance-sheet management is the practice of reviewing the actual and planned strategic growth of business and its impact from a balance sheet integrity and sustainability perspective. As such the goal is to identify any risks arising from structural imbalances and concentrations, and seek to alter plans in order to avoid these developing into a liquidity problem. Liquidity management Liquidity management is the day to day practice of ensuring that the Bank is able to meet all its payment obligations as they fall due without having to sell assets or borrow funds at short notice at adverse market prices. While primarily focused on the management of cash-flows, MCB maintains a portfolio of marketable securities that can either be sold outright or sold through a repurchase agreement to generate cash-flow for meeting liquidity requirements. Another precautionary measure is the active maintenance of borrowing relationships to ensure the continued access to diverse market of funding sources. Intraday liquidity management Intraday liquidity management is the practice of ensuring that the Bank has sufficient cash during the day to make payments through the local payment system. In this respect, MCB maintains cash balances from which payments are made or generate a cash balances through the receipt of payments due or from borrowing or the outright sale or pledging of qualifying securities with the State Bank of Pakistan.

44.4.1

Maturities of Assets and Liabilities - Based on contractual maturity of the assets and liabilities of the Bank 2008 Over 1 Over 3 Over 6 Over 1 Over 2 Over 3 Over 5 Above to 3 to 6 months to to 2 to 3 to 5 to 10 10 years months months 1 year years years years years -------------------------------------------------------------------------------------------(Rupees in '000)------------------------------------------------------------------------------------------Up to 1 month 39,631,219 4,106,526 4,100,079 26,313,460 12,828,821 76,729 10,663 6,364,554 93,432,051 10,551,468 9,086,590 273,066,330 37,650 6,355,440 299,097,478 (205,665,427) 46,011,877 1,386,235 153,459 40,152 5,823,749 53,415,472 6,867,997 17,007,818 62,137 4,380,863 28,318,815 25,096,657 5,013,425 101,048,429 230,188 31,615 448,374 106,772,031 4,608,502 11,656,112 91,373 5,177,673 21,533,660 85,238,371 4,760,623 71,271,406 460,377 358,692 547,038 77,398,136 1,050,376 21,055,371 182,746 1,343,818 23,632,311 53,765,825 3,477,594 39,939,731 920,753 79,400 6,642,888 51,060,366 1,050,375 1,325,882 365,492 1,420,253 4,162,002 46,898,364 1,926,341 12,667,283 920,753 77,018 1,625 15,593,020 2,083,437 147,080 502,860 2,733,377 12,859,643 4,755,241 19,214,140 1,841,506 95,038 25,905,925 4,050,130 294,160 984,145 5,328,435 20,577,490 2,861,218 3,094,364 4,570,877 494,231 11,020,690 57,400 1,087,890 1,145,290 9,875,400 2,670,612 1,058,421 8,145,843 12,677 11,887,553 401,743 401,743 11,485,810

Total

Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments - net Advances - net Operating fixed assets Deferred tax assets Other assets - net Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loan Deferred tax liabilities Other liabilities Net assets Share capital Reserves Unappropriated profit Minority interest Surplus on revaluation of assets - net of tax

39,631,219 4,106,526 4,100,079 97,790,391 262,508,830 17,320,485 1,199,486 19,828,228 446,485,244 10,551,468 22,663,840 330,245,080 1,639,781 21,252,942 386,353,111 60,132,133 6,282,768 36,772,321 11,065,723 69 6,011,252 60,132,133

The above maturity profile has been prepared in accordance with International Accounting Standard (IAS) 30: Disclosure in the financial statements of banks and similar financial institutions based on contractual maturities. The maturity profile disclosed in note 44.4.2 includes maturities of current and saving deposits determined by the Assets and Liabilities Management Committee (ALCO) keeping in view the historical withdrawal pattern of these deposits.

44.4.1

Maturities of Assets and Liabilities - Based on contractual maturity of the assets and liabilities of the Bank

2007 Total Up to 1 month Over 1 to 3 months Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments - net Advances - net Operating fixed assets Deferred tax assets Other assets - net Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loan Deferred tax liabilities Other liabilities Net assets Share capital Reserves Unappropriated profit Minority interest Surplus on revaluation of assets - net of tax 10,479,058 39,406,831 292,088,347 479,232 1,794,183 11,716,465 355,964,116 57,547,322 6,282,768 34,000,927 7,054,472 47,338,167 63 10,209,092 57,547,322 10,479,058 33,027,113 260,807,989 4,165 2,223,568 306,541,893 (229,937,027) 3,300,305 4,555,291 479,232 8,333 2,084,452 10,427,613 33,386,041 606,336 3,418,892 20,043 2,031,494 6,076,765 65,504,109 12,850,476 82,665 2,217,241 15,150,382 85,759,782 2,283,975 51,454 865,317 3,200,746 22,454,266 1,974,594 49,996 868,314 2,892,904 20,794,738 2,473,077 4,354,242 99,991 867,271 7,794,581 37,202,804 1,842,888 192,325 558,808 2,594,021 4,848,225 1,285,211 1,285,211 17,534,384 Over 3 to 6 months Over 6 months to 1 year Over 1 to 2 years Over 2 to 3 years Over 3 to 5 years Over 5 to 10 years Above 10 years

-------------------------------------------------------------------------------------------(Rupees in '000)------------------------------------------------------------------------------------------39,683,883 3,867,591 1,051,372 115,358,590 218,959,786 16,082,781 610,597 17,896,838 413,511,438 39,683,883 3,867,591 51,372 24,568,034 5,964,299 55,681 2,414,006 76,604,866 1,000,000 14,317,952 27,227,275 9,224 1,259,203 43,813,654 20,917,643 49,538,582 167,037 957,612 71,580,874 37,450,361 61,024,392 334,076 913 2,100,422 100,910,164 4,620,702 17,891,332 859,565 124,149 2,159,264 25,655,012 1,267,859 17,891,332 668,149 178,517 3,681,785 23,687,642 2,756,134 35,782,665 836,394 297,646 5,324,546 44,997,385 5,563,919 1,455,964 420,590 1,773 7,442,246 3,895,986 2,183,945 12,732,065 7,599 18,819,595

0.441

The above maturity profile has been prepared in accordance with International Accounting Standard (IAS) 30: Disclosure in the financial statements of banks and similar financial institutions based on contractual maturities. The maturity profile disclosed in note 44.4.2 includes maturities of current and saving deposits determined by the Assets and Liabilities Management Committee (ALCO) keeping in view the historical withdrawal pattern of these deposits.

44.4.2 Maturities of Assets and Liabilities - Based on the working prepared by the Asset and Liabilities Management Committee (ALCO) of the Bank 2008 Over 1 Over 3 Over 6 Over 1 Over 2 Over 3 Over 5 to 3 to 6 months to to 2 to 3 to 5 to 10 months months 1 year years years years years ----------------------------------------------------------------------------(Rupees in '000)---------------------------------------------------------------------------Up to 1 month 39,631,219 4,106,526 4,100,079 26,313,460 12,828,821 76,729 10,663 6,364,554 93,432,051 10,551,468 9,086,590 35,454,051 37,650 6,355,440 61,485,199 31,946,852 46,011,877 1,386,235 153,459 40,152 5,823,749 53,415,472 6,867,997 45,707,877 62,137 4,380,863 57,018,874 (3,603,402) 5,013,425 101,048,429 230,188 31,615 448,374 106,772,031 4,608,502 85,926,417 91,373 5,177,673 95,803,965 10,968,066 4,760,623 71,271,406 460,377 358,692 547,038 77,398,136 1,050,376 95,325,677 182,746 1,343,818 97,902,617 (20,504,481) 3,477,594 39,939,731 920,753 79,400 6,642,888 51,060,366 1,050,375 22,811,402 365,492 1,420,253 25,647,522 25,412,844 1,926,341 12,667,283 920,753 77,018 1,625 15,593,020 17,788,662 147,080 502,860 18,438,602 (2,845,582) 4,755,241 19,214,140 1,841,506 95,038 25,905,925 15,827,302 294,160 984,145 17,105,607 8,800,318 2,861,218 3,094,364 4,570,877 494,231 11,020,690 5,780,296 57,400 1,087,890 6,925,586 4,095,104

Total

Above 10 years

Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments - net Advances - net Operating fixed assets Deferred tax assets Other assets - net Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loan Deferred tax liabilities Other liabilities Net assets Share capital Reserves Unappropriated profit Minority interest Surplus on revaluation of assets - net of tax

39,631,219 4,106,526 4,100,079 97,790,391 262,508,830 17,320,485 1,199,486 19,828,228 446,485,244 10,551,468 22,663,840 330,245,080 1,639,781 21,252,942 386,353,111 60,132,133 6,282,768 36,772,321 11,065,723 69 6,011,252 60,132,133

2,670,612 1,058,421 8,145,843 12,677 11,887,553 5,623,396 401,743 6,025,139 5,862,414

Refer the sub-note to note 44.4.1 also. Current and saving deposits do not have any contractual maturity. Therefore, current deposits and saving accounts have been classified between all nine maturities. Further, it has been assumed that on a going concern basis, these deposits are not expected to fall below the current year's level.

44.4.2 Maturities of Assets and Liabilities - Based on the working prepared by the Asset and Liabilities Management Committee (ALCO) of the Bank 2007 Over 1 Over 3 Over 6 Over 1 Over 2 Over 3 Over 5 to 3 to 6 months to to 2 to 3 to 5 to 10 months months 1 year years years years years ----------------------------------------------------------------------------(Rupees in '000)---------------------------------------------------------------------------Up to 1 month 39,683,883 3,867,591 51,372 24,568,034 5,964,299 55,681 2,414,006 76,604,866 10,479,058 33,027,113 29,986,533 4,165 2,223,568 75,720,437 884,428 1,000,000 14,317,952 27,227,275 9,224 1,259,203 43,813,654 3,300,305 33,628,921 479,232 8,333 2,084,452 39,501,243 4,312,411 20,917,643 49,538,582 167,037 957,612 71,580,874 606,336 76,432,222 20,043 2,031,494 79,090,095 (7,509,221) 37,450,361 61,024,392 334,076 913 2,100,422 100,910,164 85,863,528 82,665 2,217,241 88,163,434 12,746,730 4,620,702 17,891,332 859,565 124,149 2,159,264 25,655,012 21,973,538 51,454 865,317 22,890,309 2,764,703 1,267,859 17,891,332 668,149 178,517 3,681,785 23,687,642 16,579,245 49,996 868,314 17,497,555 6,190,087 2,756,134 35,782,665 836,394 297,646 5,324,546 44,997,385 2,473,077 15,741,140 99,991 867,271 19,181,479 25,815,906 5,563,919 1,455,964 420,590 1,773 7,442,246 6,927,894 192,325 558,808 7,679,027 (236,781)

Total

Above 10 years

Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments - net Advances - net Operating fixed assets Deferred tax assets Other assets - net Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loan Deferred tax liabilities Other liabilities Net assets Share capital Reserves Unappropriated profit Minority interest Surplus on revaluation of assets - net of tax

39,683,883 3,867,591 1,051,372 115,358,590 218,959,786 16,082,781 610,597 17,896,838 413,511,438 10,479,058 39,406,831 292,088,347 479,232 1,794,183 11,716,465 355,964,116 57,547,322 6,282,768 34,000,927 7,054,472 47,338,167 63 10,209,092 57,547,322

3,895,986 2,183,945 12,732,065 7,599 18,819,595 4,955,326 1,285,211 6,240,537 12,579,058

Refer the sub-note to note 44.4.1 also. Current and saving deposits do not have any contractual maturity. Therefore, current deposits and saving accounts have been classified between all nine maturities. Further, it has been assumed that on a going concern basis, these deposits are not expected to fall below the current year's level.

44.5

Operational Risk In line with the BIS Basel-II framework, we define Operational Risk as the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events. This definition includes legal risk, but excludes strategic and reputational risks. Operational Risk Management Division (ORMD) is primarily responsible for bank-wide operational risk management. Although the respective business and support functions are the risk takers / owners, ORMD provides assistance and guidance to these areas for proactive operational risk management. Our Risk Management Policy and bank-wide Operational Risk Management Framework (ORMF) have been developed in line with international best practices. ORMD initiated the process of collecting and analyzing operational risk data (both loss and control breach / near misses) on key risks in 2007. Based on the analysis of this data, ORMD prepares periodic reports for the senior management and Risk Management and Portfolio Review Committee (RM&PRC) of the Board of Directors on significant risk events, impact analysis and recommendations for improvement in controls / risk mitigation. Major processes for operational risk management include, but are not limited to, a Risk & Control Self Assessment exercise, regular reporting of operational losses and control breaches through ORMD to senior management, setting and monitoring of tolerance limits, and improving awareness of, and adherence to, operational risk aspects across the Bank. We are currently using the Basic Indicator approach to Operational Risk for regulatory capital calculation. However, in line with our policy to adopt the Standardized / Alternate Standardized Approach a number of initiatives have been undertaken which include Business Line Mapping, Risk and Control Self Assessment (RCSA), development of a methodology for setting Value at Risk (VaR) based tolerance limits for Basel risk event types, for business and support Groups and on bank-wide basis as well as setting threshold levels for Key Risk Indicators (KRIs).

45.

GENERAL Comparative information has been reclassified and rearranged in these financial statements for the purpose of comparison. No significant reclassification has been made except for as follows; An amount of Rs. 436.936 million on account of postal, SWIFT and other charges recovered has been reclassified as other income. Previously, these were netted of with administrative expenses. An amount of Rs. 33.236 million on account of VAT Srilanka have been reclassified from administrative expenses to other charges.

46.

NON-ADJUSTING EVENT The Board of Directors in its meeting held on February 16, 2009 has announced a final cash dividend in respect of the year ended December 31, 2008 of Rs.2.5 per share (2007: Rs. 5 per share) and bonus issue of 10% (2007: NIL). These financial statements for the year ended December 31, 2008 do not include the effect of these appropriations which will be accounted for subsequent to the year end.

47.

DATE OF AUTHORIZATION FOR ISSUE These financial statements were authorized for issue by the Board of Directors of the Bank in their meeting held on February 16, 2009.

__________________________ President and Chief Executive

________ Director

________ Director

________ Director

ANNEXURE - I 1 Particulars of Investments in listed companies, mutual funds and modarabas-available for sale Number of Ordinary and preference shares/ certificates/units held

Paid-up value per share/certificate/u nit Rupees

Total paidup/ nominal value

Cost as at 31 December 2008

Investee Entities Fully Paid-up Preference Shares Azgard Nine Limited Masood Textile Mills Limited

Note

(Rupees in '000)

1.1

1,160,241 5,000,000

10 10

11,602 50,000

11,602 50,000 61,602

Fully Paid-up Ordinary Shares Abbott Laboratories Pakistan Limited Allied Bank Limited Arif Habib Limited Arif Habib Securities Limited Askari Bank Limited Atlas Bank Limited Attock Petroleum Limited Bank Alfalah Limited Bank Al-Habib Limited Century Papers & Board Mills Limited Cherat Cement Company Limited EFU General Insurance Limited EFU Life Insurance Company Limited Engro Chemical Pakistan Limited Fauji Fertilizer Bin Qasim Company Limited Fauji Fertilizer Company Limited Glaxosmithkline Pakistan Limited Habib Bank Limited Habib Metropolitan Bank Limited Hub Power Company Limited IGI Insurance Company of Pakistan Limited Indus Motor Company Limited International Industries Limited JS Bank Limited Jahangir Siddiqui and Company Limited Kohinoor Energy Limited Kot Addu Power Company Limited Lucky Cement Limited Mehr Dastagir Textile Mills Limited Maple Leaf Cement Company Limited Millat Tractors Limited National Bank Of Pakistan National Refinery Limited Oil & Gas Development Company Limited Orix Leasing Pakistan Limited Pace Pakistan Limited Packages Limited Pak Suzuki Motor Company Limited Pakistan Cables Limited Pakistan Cement Company Limited Pakistan Oilfields Limited Pakistan Petroleum Limited Pakistan State Oil Company Limited Pakistan Telecommunication Company Limited Pakistan Tobacco Company Limited Rupali Polyester Limited Soneri Bank Limited Sui Northern Gas Pipelines Limited Taj Textile Mills Limited Thal Limited The Bank of Punjab TRG Pakistan Limited Trust Securities & Brokerage Limited Unilever Pakistan Limited United Bank Limited Zulfiqar Industries Limited Total

135,600 2,585,720 87,500 1,529,875 4,286,576 6,140,500 108,120 3,012,543 4,276,872 438,460 28,800 12,040 7,569 857,964 4,092,674 6,818,316 484,672 1,229,100 552,410 939,925 440,490 42,027 382,754 1,319,000 1,156,469 55,000 915,400 175,000 1,616,912 12,411,500 91,228 1,693,892 30,000 2,150,165 253,920 43,000 21,911 49,600 86,716 46,000 795,720 715,088 466,600 4,893,731 138,700 658,545 2,802,600 47,728,822 400 37,380 6,423,100 500,000 300,000 33,280 2,214,000 27,761

10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 5 10 10 10 50 10 10

1,356 25,857 875 15,299 42,866 61,405 1,081 30,125 42,769 4,385 288 120 76 8,580 40,927 68,183 4,847 12,291 5,524 9,399 4,405 420 3,828 13,190 11,565 550 9,154 1,750 16,169 124,115 912 16,939 300 21,502 2,539 430 219 496 867 460 7,957 7,151 4,666 48,937 1,387 6,585 28,026 477,288 4 187 64,231 5,000 3,000 1,664 22,140 278

25,200 284,251 23,302 214,004 301,018 94,825 45,644 162,531 217,490 17,657 1,669 822 369 298,876 166,023 601,703 64,437 295,489 30,024 24,113 83,412 8,655 35,188 27,808 222,654 1,566 46,540 24,098 16,169 221,022 12,371 298,131 10,774 282,517 5,025 1,456 5,941 18,028 14,410 641 273,012 174,015 237,216 244,216 22,536 46,475 119,546 2,205,253 1 4,256 170,996 7,124 3,000 47,892 302,672 3,557 8,067,620

Investee Entities Fully Paid-up Modaraba Certificates First Al-Noor Modaraba Al-Noor Modaraba Management (Private) Limited

Number of Ordinary and preference shares/ certificates/units held

Paid-up value per share/certificate/u nit Rupees

Total paidup/ nominal value

Cost as at 31 December 2008

(Rupees in '000)

5,553,270

10

55,532.70

60,606

Total Carrying value (before revaluation and provision) Listed Shares 'available for sale' Provision for diminution in value of investments Deficit on revaluation of securities Carrying value as at December 31, 2008

60,606 8,189,828 (2,591,650) (2,286,629) 3,311,549

Fully Paid-up Ordinary Certificates/Units of Mutual Funds

Name of Management Company \ MCB Asset Management Company Limited KASB Asset Management Company Limited Atlas Asset Management Company Limited MCB Asset Management Company Limited MCB Asset Management Company Limited

Number of units held

Paid-up value per unit Rupees

Total paidCost as at up/ nominal December 31, value 2008 (Rupees in '000)

MCB Dynamic Cash Fund KASB Liquid Fund Atlas Islamic Fund MCB Dynamic Stock Fund (IPO) MCB Dynamic Allocation Fund (IPO) Carrying value before revaluation & provision

2,922,443 153,813 20,967 3,033,874 1,000,000

100 100 500 100 100

292,244 15,381 10,484 303,387 100,000

250,000 15,000 10,000 301,909 100,000 676,909 (194,694) 37,018 519,233

Provision for diminution in value of investments Surplus on revaluation of securities Carrying value as at December 31, 2008

1.1

These are redeemable after the end of the fourth year from June 2005 at the option of the issuer either in whole or multiples of 10% of outstanding issue at a price of Rs. 10 per share plus any accumulated preference dividend. Dividend rate is 6 months KIBOR + 200 bps per annum.

Particulars of Investments in listed companies / mutual fund-held for trading Number of Ordinary share / unit held Paid-up value per share / unit Rupees 10 10 10 10 10 10 10 10 10 10 5 10 Total paidCost as at 31 up/ nominal December 2008 value (Rupees in '000) 3,059 550 1,002 2,672 424 1,547 4,881 1,500 185 840 70 650 21,665 10,844 31,159 10,551 6,425 20,709 42,711 1,116 4,506 19,829 1,851 6,420

Allied Bank Limited Pakistan Petroleum Limited Attock Petroleum Limited Bank Alfalah Limited ICI Pakistan Limited Jahangir siddique and Company Limited Lucky Cement Limited Maple Leaf Cement Company Limited Packages Limited Pakistan Oilfields Limited Thal Limited United Bank Limited Units in open ended mutual fund MCB Dynamic Cash Fund Total

305,880 55,000 100,200 267,200 42,400 154,700 488,100 150,000 18,500 84,000 14,000 65,000

3,338,679

100

333,868

325,831 503,617

3) Particulars of Investment held in unlisted companies-available for sale Percentage of holding (%) Number of shares / certificates held Carrying Net Asset Value value as at Based on audited financial of total December 31, statements as at investment 2008 (Rs ' 000 ')

Company Name

Name of Chief Executive

Shareholding more than 10% Fully paid up preference shares Fazal Cloth Mills Limited (3.2) Fully paid up Ordinary Shares/ Certificates/ Units Pak Asian Fund Limited Khushhali Bank Limited Central Depository Company of Pakistan Limited 10.22% 17.60% 10.00% 1,150,000 30,000,000 5,000,000 40.00% 10,000,000

100,000

Mr. Sheikh Naseem Ahmed

11,500 300,000 10,000 321,500

19,462 June 30, 2008 323,680 December 31, 2007 138,840 June 30, 2008

Mr. Ashfaq A. Berdi Mr. Ghalib Nishtar Mr. Mohammad Hanif Jhakura

Shareholding upto 10% Fully paid up Ordinary Shares/ Certificates/ Units

First Capital Investment Limited Equity Participation Fund National Institute of Facilitation Technology Private Limited National Investment Trust Limited SME Bank Limited Society for Worldwide Inter Fund Transfer (SWIFT) Lanka Clear (Private) Limited Credit Information Bureau Of Srilanka Arabian Sea Country Club Lanka Financial Services Bureau Limited

250,000 15,000 985,485 52,800 1,490,619 31 100,000 300 500,000 200

2,500 1,500 1,527 100 10,106 2,993 700 21 2,900 1,400 23,747

2,828 9,751 46,050 261,530 18,001 7,867 1,426

June 30, 2008 June 30, 2008 June 30, 2008 June 30, 2008 December 31, 2007 December 31, 2007 March 31, 2008

Mr. Kamran Hafeez Mr. Jamil Nasim Mr.Muzaffar Mahmood Khan Mr. Tariq Iqbal Khan Mr. R. A. Chughtai Mr. Lazara Campos Mr. Sunimal Weerasoriya Mr.N.P.H.Amarasena Mr. Asif Ali Khan Abbasi Mr. Anil Amrasoriya

34 December 31, 2007 1,549 June 30, 2008 1,099 March 31, 2008

Carrying value of unlisted shares/ certificates/ units Provision against unlisted shares

445,247 70,477 515,724

3.1 The above excludes shares of companies which are fully provided for in these financial statements. All the above companies are incorporated in Pakistan, except for Lanka Clearing (Private) Limited, Credit Information Bureau of Srilanka, Lanka Financial Services Bureau Limited and SWIFT. 3.2 These carry dividend rate of 6 months KIBOR + 2.5% per annum. The percentage of holding disclosed is in proportion to the preference share paid up capital.

4.

Particulars of investments in Term Finance Certificates and Sukuk Bonds- (refer note 9) Investee Number of certificates held Paid up value per certificate Total Paid up Value (before redemption) ---------- (Rupees) ---------Profit Principal Redemption Balance as at December 31, 2008 (Rupees in '000)

ANNEXURE - I Name of Chief Executive

LISTED TERM FINANCE CERTIFICATES - available for sale

Askari Bank Limited - issue no. I - issue no. II

20,000 19,980 39,980

5,000 5,000

100,000,000 6 months KIBOR + 1.5% p.a. 99,900,000 6 months KIBOR + 1.5% p.a. 199,900,000

0.3% of principal amount in the first 90 months and the remaining principal in the 96th month from February 2005. 0.3% of principal amount in the first 90 months and the remaining principal in the 96th month from October 2005.

99,860 Mr. Shaharyar Ahmad 99,780 --do--

Bank Al Habib Limited

20,000

5,000

100,000,000 6 months KIBOR + 1.5% p.a.with a floor and cap of 3.5% and 10% per annum respectively.

0.02% of total issue in equal installments in first 78 months and the remaining principal in 3 semi-annual installments from the 84th month from July 2004.

99,840 Mr. Abbas D. Habib

Bank Alfalah Limited - issue no. II

10,000

5,000

50,000,000 6 months KIBOR + 1.5% p.a.

- issue no. III

39,720

5,000

198,600,000 6 months KIBOR + 1.5% p.a.

0.25% of principal in the first 78 months and remaining principal in 3 semi-annual installments of 33.25% each of the issue amount starting from the 84th month from November 2004. 0.25% of the principal in the first 78 months and remaining in 3 semi annual installments of 33.25% each starting from the 84th month from November 2005.

49,923 Mr. Muhammad Saleem Akhtar

198,371 --do--

49,720 Allied Bank Limited - issue no. I 20,000 5,000

248,600,000 100,000,000 6 months KIBOR + 1.9% p.a. 0.24% of principal in the first 72 months and remaining principal in 4 equal semi-annual installments of 24.94% each of the issue amount starting from the 78th month. Pre-IPO 90,178 Mr. Aftab Manzoor

- issue no. II

46,400 66,400

5,000

232,000,000 6 months KIBOR + 0.85% p.a. 332,000,000

232,000 --do--

Soneri Bank Limited United Bank Limited - issue no. III

30,000 56,978

5,000 5,000

150,000,000 6 months KIBOR + 1.6% p.a. 284,890,000 6 months KIBOR + 1.7% p.a.

In 4 semi annual equal installments starting from the 78th month from May 2005. 0.2% of the principal in the first 60 months and remaining principal in 6 equal semi annual installments from September 2006. In six stepped -up semi-annual installments starting from the 30th month from July 2007.

149,790 Mr. Safar Ali K. Lakhani 284,662 Mr. Atif R. Bokhari

Pak Arab Fertilizers Limited

20,000

5,000

100,000,000 6 months KIBOR + 1.5% p.a.

99,980 Mr. Khalil-ur- Rehman Tarin (M.D.)

Carrying value before revaluation Add: Revaluation surplus Carrying value of listed TFCs (revalued amount) SUKUK BONDS - available for sale Terms of Redemption Principal Interest At maturity Half-yearly Rate of interest 6 Month KIBOR+0.35% Currency

1,404,384 25,147 1,429,531

WAPDA Sukuk Bonds

PKR

400,000 Mr. Muhammad Shakil Durrani

Add: Revaluation surplus Carrying value of sukuk bonds (revalued amount) UN-LISTED TERM FINANCE CERTIFICATES - held to maturity Investee Number of certificates held Paid up value per certificate Total Paid up Value (before redemption) Profit Principal Redemption

19,000 419,000

Balance as at December 31, 2008

Name of Chief Executive

Jahangir Siddiqui and Company Limited Pak Kuwait Investment Company (Private) Limited Pakistan Mobile Corporation Limited Islamabad Electric Supply Company Limited Gujranwala Electric Supply Company Limited Faisalabad Electric Supply Company Limited Carrying value of unlisted TFCs

56 100,000 100,000 200,000 200,000 200,000

5,000,000 5,000 5,000 5,000 5,000 5,000

280,000,000 6 months KIBOR + 1.5% to 2.2% p.a. over 10 years 500,000,000 3 months KIBOR + 1.25% p.a. 500,000,000 6 months KIBOR + 1.6% p.a. 1,000,000,000 6 Month KIBOR +0.23% p.a. 1,000,000,000 6 Month KIBOR +0.23% p.a. 1,000,000,000 6 Month KIBOR +0.23% p.a.

In 4 equal semi-annual installments, starting from 8-1/2 years from December 2004. In 5 equal semi-annual installments commencing from the 36th month from June 2005. In 5 equal semi-annual installments starting from the 36th month from March 2004. In 4 equal semi-annual installments starting from November 2009. In 4 equal semi-annual installments starting from November 2009. In 4 equal semi-annual installments starting from November 2009.

279,496 Mr. Munaf Ibrahim 400,000 Mr. Istaqbal Mehdi (M.D.) 100,000 Mr. Zuhair A. Khaliq 1,000,000 Brig. Waseem Zafar Iqbal 1,000,000 Rana Muhammad Ashraf Zahid 1,000,000 Ahmad Saeed Akhtar 3,779,496

The above excludes unlisted term finance certificates, debentures, bonds and participation term certificates of companies which are fully provided for in these financial statements.

5.

Details of Bonds, Debentures and Federal Government Securities (refer note 9) - held to maturity
Description Terms of Redemption Principal Interest Rate of interest Currency

ANNEXURE - I
Foreign Currency Amount (in '000) Carrying value as at December 31, 2008 (Rupees in '000) 105,000

Debentures Singer (Sri Lanka) Plc. Federal Government Securities Government of Pakistan Yearly Yearly Barclays Bank's 3 months USD LIBOR +1% 11.75% US$ 4,074 322,216 At maturity Half-yearly 21.85% SLR 150,000

Government of Srilanka Treasury Bonds Government Compensation Bonds Heavy Mechanical Complex Public Sector Enterprises Bonds (PSE-89) Public Sector Enterprises Bonds (PSE-90) Sukuk Bonds Government Sukuk Bonds WAPDA Sukuk Bonds Sui Southern Gas Company Limited Sukuk Bonds Quetta Textile Mills Limited Sukuk Bonds J.D.W Sugar Mills Limited Sukuk Bonds Sitara Energy Limited Century Paper and Boards Mills Limited Sukuk Bonds

At maturity

Half-yearly

SLR

100,000 104,074

70,000 392,216 27,224 556,990 286,557 870,771 1,038,533 400,000 350,000 75,000 175,000 112,727 250,000 2,401,260 4,540,966 309,663 118,887 4,969,516

At maturity At maturity At maturity

Yearly Yearly Yearly

6.00% 6.00% 9.00%

PKR PKR PKR

At maturity At maturity At maturity In 12 equal semi-annual installments. In 18 unequal quarterly installments. In 8 equal semi-annual installments. At maturity

Half-yearly Half-yearly Quarterly Half-yearly Quarterly Half-yearly Half-yearly

6 Month LIBOR+2.2% 6 Month KIBOR+0.35% 3 Month KIBOR+1.4% 6 Month KIBOR+1.50% 3 Month KIBOR+1.25% 6 Month KIBOR+1.15% 6 Month KIBOR+1.35%

US$ PKR PKR PKR PKR PKR PKR

13,130 13,130

Euro Bonds Euro Bonds - OBU Bahrain Euro Bonds - OBU Bahrain Treasury Euro Bonds - Srilanka

At maturity At maturity At maturity

Half-yearly Half-yearly Half-yearly

6.75% 6.88% 6.75%

US$ US$ US$

57,409 3,915 1,503 62,827

6.

Details of certificates of investment (refer note 9) - held to maturity in local currency

Company Name Carrying value at December 31, 2008 (Rupees in '000) Pak Libya Holding Company Limited 250,000 25 February 13, 2009 Profit rate (%) Maturity date

Summarized financial information of associated undertakings (refer note 9) The gross amount of assets, liabilities, revenue, profit and net assets of associated undertakings are as follows:
Name of associated undertaking Country of incorporation Assets Liabilities Net assets Revenue Profit % of interest held

----------------------- (Rupees in '000) ----------------------2008 First Women Bank Limited (unaudited based on September 30, 2008) Adamjee Insurance Company Limited (unaudited based on September 30, 2008) 2007 First Women Bank Limited (unaudited based on September 30, 2007) Adamjee Insurance Company Limited (unaudited based on September 30, 2007) Pakistan 8,625,499 7,561,236 1,064,263 369,150 * 94,561 26.78%

Pakistan

21,268,292 29,893,791

10,860,064 18,421,300

10,408,228 11,472,491

5,463,868 ** 5,833,018

3,063,187 3,157,748

29.13%

Pakistan

8,148,575

7,102,478

1,046,097

375,134 *

111,845

26.78%

Pakistan

14,362,406 22,510,981

9,368,665 16,471,143

4,993,741 6,039,838

4,100,951 ** 4,476,085

1,543,244 1,655,089

29.13%

* Represents net mark-up / interest income ** Represents net premium revenue

Annexure - II
ISLAMIC BANKING BUSINESS The Bank is operating 11 Islamic banking branches at the end of December 31, 2008 as compared to 8 Islamic banking branches at the end of December 31, 2007.

2007 2008 (Rupees in '000) ASSETS Cash and balances with treasury banks Investments Financing and receivables -Murabaha -Ijara -Islamic export refinance Other assets Total Assets LIABILITIES Bills payable Deposits and other accounts -Current accounts -Saving accounts -Term deposits -Others Borrowings from SBP Due to head office Deferred Tax Liability Other liabilities NET ASSETS REPRESENTED BY Islamic banking fund Unappropriated profit Surplus on revaluation of assets - net of tax 185,177 1,781,727 2,573,116 1,197,762 978,303 2,561,843 9,277,928 73,540 175,350 1,110,499 75,740 2,681 966,500 5,750,000 6,650 244,697 8,405,657 872,271 650,000 209,921 859,921 12,350 872,271 1,200 601,665 1,419,000 2,406,402 1,585,202 738,178 764,036 7,514,483 47,115 440,567 907,283 76,382 30,256 593,000 4,750,000 4,988 113,598 6,963,189 551,294 400,000 137,282 537,282 14,012 551,294 1,179

Remuneration to Shariah Advisor / Board CHARITY FUND Opening Balance Additions during the year Payments / utilization during the year Closing Balance

4,227 1,566 (3,700) 2,093

3,244 983 4,227

Annexure - III

STATEMENT SHOWING WRITTEN-OFF LOANS OR ANY OTHER FINANCIAL RELIEF OF FIVE HUNDRED THOUSAND RUPEES OR ABOVE PROVIDED DURING THE YEAR 2008
(Rupees in Thousand)
Sr. No

Name & Address of the Borrower

Name of Individuals/Partners/ Directors Name NIC No. 511-59-015478

Father's/Husband's Name

Outstanding Liabilities at Beginning of Year Principal 3,872

Intt/Acc/Mup

Others 123

Total 12,592

Principal Written off 3,872

Interest/ Mark up Other Fin. Reliefs Written off Provided 8,720

Total

M/S. NEW SINDH X-RAYS 5/1, Office Tower, Rimpa Plaza, M.A. Jinnah Road, Karachi. M/S. PRECISION TOOLS MANUFACTURING COMPANY 307, Dada Chambers, M.A. Jinnah Road, Karachi.

Abdul Qadir

Hassan

8,597

12,592

1. Allah Rakha 2. Aijaz Habib 3. Fatima Abdul Qadir 4. Abdul Rasool Shah 1. Allah Rakha
2. Muhammad Naeem Billoo

42301-1074046-5 Haji Umer A. Habib W/o Abdul Qadir Ibrahim Shah 42301-1074046-5 42201-2331038-9 511-22-005421 Haji Umer Habib Billoo Muhammad Ibrahim -

3,830

12,107

107

16,044

3,830

12,214

16,044

M/S. NOORIABAD DEVELOPERS 5-G/1, Hamilton court, Clifton, Karachi.

150

1,279

51

1,480

150

1,330

1,480

3. Haji Habib Billoo 4. M. Ashraf Billoo

M/S. PROFESSIONAL ENGINEERING WORKS 1. Allah Rakha G-K-6/3, G. Allana Road, 2. Muhammad Naeem Billoo Kharadar, Karachi. 3. Abdul Qadir 4. Mst. Zubaida M/S. NAEEM BILLOO & COMPANY 307, Hussaini Market, M.A. Jinnah Road, Karachi. 1. Allah Rakha
2. Muhammad Naeem Billoo

42301-1074046-5 42201-2331038-9 511-59-015478 -

Haji Umer Habib Billoo Hassan D/o Usman

1,652

16,070

113

17,835

1,652

16,183

17,835

42301-1074046-5 Haji Umer 42201-2331038-9 Habib Billoo

1,783

5,617

145

7,545

1,783

5,762

7,545

M/S. WORLD TRADE ENTERPRISES 1. Allah Rakha 307, Hussaini Market (Dada Chambers) 2. Muhammad Naeem Billoo M.A. Jinnah Road, Karachi. 3. Abdul Qadir 4. Mst. Zubaida M/S.MANZOOR TEXTILE MILLS LTD 1. M. Younus Sheikh Manzoor Hytes, 6 St, Mary Park, 2. M. Yousuf Sheikh Gulberg-III, Lahore. 3. Maqbool Hussain Sheikh M/S.TAMEER ASSOCIATES (PVT) LTD. SB-37, Block-13-B, Main University Road, Gulshan-e-Iqbal, Karachi.

42301-1074046-5 42201-2331038-9 511-59-015478 502-52-176776 502-85-176777 -

Haji Umer Habib Billoo Hassan D/o Usman Manzoor Hussain Sheikh Manzoor Hussain Sheikh Manzoor Hussain Sheikh

5,815

75

5,890

5,890

5,890

250

690

940

690

690

1. Pervezul Haque Siddiqui 2. Jawedul Haque Siddiqui 3. Naveedul Haque Siddiqui 4. Suriya Jehan

517-57-175463 517-35-059735 -

Mubinul Haq Mubinul Haq Mubinul Haq W/o Mubinul Haq W/o Iqbal Adamjee -

437

2,197

2,634

437

2,197

2,634

M/S. PAK NIPPON INDUSTRIES LTD. 1. Iqbal Adamjee 2nd Floor, Adamjee House, 2. Ashraf Adamjee I.I.Chundrigar Road, Karachi. 3. Aftab Adamjee
4. Mrs. Fatima Iqbal Adamjee

11,134

24,375

161

35,670

11,134

24,536

35,670

5. Mr. T. Marumo 6. Mr. Furukawa 7. Mr. D. Yabuchi 8. Mr. K. Ohtsu

(Rupees in Thousand)
Sr. No

Name & Address of the Borrower

Name of Individuals/Partners/ Directors Name 1. S.M.Abdullah 2. Syed Naveed H. Zaidi 3. Dr. Khalid Iqbal
4. Muhammad Ashiq Rehmani

Father's/Husband's Name

Outstanding Liabilities at Beginning of Year Principal

Intt/Acc/Mup

NIC No. 514-43-073492 61101-1810561-3 61101-1981308-3 101-87-128544 42301-1210279-9 61101-6052271-9 517-58-097843 42000-0509816-7 Hafiz Sher Muhammad Syed Sardar Ali Shah Aziz Ahmed Dr. Muhammad Abdullah M. Abdul Aas Afzal Ahmed Khan Amjad Ali Imdad Hussain Junejo

Others -

Total 19,092

Principal Written off 9,800

Interest/ Mark up Other Fin. Reliefs Written off Provided 9,292 -

Total

10 M/S. ASSETS INVESTMENT BANK LIMITED 301, 302, 3rd Floor, Muhammad Gulistan Khan house, 82-East, Fazal-ul-Haq Road, Islamabad.

9,800

9,292

19,092

5. Rana M. Abu Obaida 6. Azhar Tariq Khan 7. Sohail Ali 8. Shamim Ahmed Junejo 11 M/S. FIRST CUSTODIAN MODARABA. 408, 4th Floor, Trade Centre, I.I.Chundrigar Road, Karachi.

1. Zafar Alam 2. Rahat Aziz 3. Humayun Zia 4. Tehseen Ahmed 5. Mumtaz Soomro 6. Qamar-ur- Hussain 7. Abdul Razzaq

267-50-015326 514-62-095159 -

Abdul Aziz Yousuf Ali Zia Muhammad Yousuf Noor Muhammad Maqbool Hussain -

5,069

3,357

8,426

5,069

3,357

8,426

12 M/S. SHABBIR TEXTILE INDUSTRIES (PVT) LTD. 109, Commerce Centre, Hasrat Mohani Road, Karachi. 13 M/S. MARS ENTERPRISES 109, Commerce Centre, Hasrat Mohani Road, Karachi. 14 M/S. MARIUM FABRICS 109, Commerce Centre, Hasrat Mohani Road, Karachi. 15 M/S. MALIK FOOD INDUSTRIES LIMITED. 66-Main Boulevard, Road, Gulshan-e-Iqbal, Karachi.

1. Ghulam Abbas 2. Marium Abbas 3. Nazir Akhter Ghulam Abbas

502-55-284346 -

Ghulam Ali W/o Ghulam Abbas Ghulam Ali

1,374

16,678

194

18,246

1,340

16,872

18,212

4,354

14,014

116

18,484

4,316

14,130

18,446

Marium Abbas

502-55-284346

W/o Ghulam Abbas

878

4,887

107

5,872

861

4,994

5,855

1. Amjad Vakil Malik 2. Anwar Aziz Malik 3. Hasan Khalid Malik 4. Khalid Aziz Malik

988

1,904

2,892

988

1,904

2,892

16 M/S. BLUE STAR SPINNING MILLS LIMITED. 30-KM, Hasilpur Road, Bahawalpur.

1. Ch. Safdar Muhammad 2. Ch. Ghulam Fareed 3. Ch. Muhammad Zaheer 4. Ch. Muhammad Siddique 5. Mst. Yasmeen Siddique 6. Mst. Naseem Fareed 7. Ch. Manzoor Ahmed

2,588

1,663

4,251

2,588

1,663

4,251

17 M/S. NOVELTY FABRICS PROCESSING MILLS LIMITED. 48-L, Model Town extension, Lahore.

1. Zubair Mohsin
2. Syed Waqar Hassan Kirmani

3. Arif Salman 4. Almas Aslam Malik 5. Mrs. Iram Malik 6. Imran Amjad Khan 7. Muhammad Usman

7,951

4,868

12,819

7,951

4,868

12,819

(Rupees in Thousand)
Sr. No

Name & Address of the Borrower

Name of Individuals/Partners/ Directors Name 1. Munaf Riaz 2. Humayun Riaz 3. Riaz Yousuf 4. Mrs. Salma Riaz 5. Mrs. Ambreen Humayun 6. Mrs. Aisha Riaz
7. Mrs. Nusrat Hussain Siddiqui

Father's/Husband's Name

Outstanding Liabilities at Beginning of Year Principal

Intt/Acc/Mup

NIC No. 514-59-122951 Riaz Yousuf Riaz Yousuf Haji Muhammad Yousuf W/o Riaz Yousuf Humayun Riaz Munaf Riaz -

Others -

Total 76,802

Principal Written off 76,064

Interest/ Mark up Other Fin. Reliefs Written off Provided 738

Total

18 M/S. RAJA WEAVING MILLS LIMITED F-532, S.I.T.E., Karachi.

76,064

738

76,802

19 M/S. RAMNA FITTING AND PIPE INDUSTRIES (PVT) LTD. 10-Abbot Road, Lahore.

1. Mian Shaukat Ali 2. Mian Sharafat Ali 3. Mian Shujaat Ali 4. Mian Shaffqat Ali Sh. Khalid Mehmood

270-29-1187980 270-50-0263450 271-59-146256 300-54-2543162

Haji Imam-ud-Din Mian Shaukat Ali Mian Shaukat Ali Sh. Maqbool Ahmed

1,796

1,796

1,796

1,796

20 M/S. WINNIPEG ENTERPRISES 694-A, Prem Nagar, Sialkot. 21 SH. KHALID MEHMOOD Ghalla Mandi, Sialkot. 22 M/S. MB SS SONS COMPANY Defence Road Near Sublime Chowk, Sialkot

2,080

91

2,171

2,171

2,171

Sh. Khalid Mehmood

300-54-2543162

Sh. Maqbool Ahmed

1,971

2,044

4,015

1,971

2,044

4,015

1. Muhammad Siddique Sapll

300-37-038259 300-87-038260 272-85-435571 272-85-435572 272-85-435573 272-85-435575 272-85-435576 -

Ch. Fazal Hussain Spall Muhammad Siddique Sapll Abdul Rauf Abdul Rauf Abdul Rauf Abdul Rauf Abdul Rauf Haji Maqsood Ahmed

1,840

4,303

45

6,188

1,840

191

4,157

6,188

2. Anjum Siddique Spall 3. Suhail Siddique Spall 4. Rohail Siddique Spall 1. M. Iqbal Rauf 2. M. Maqbool Rauf 3. M. Masood Rauf 4. m. Shahzad Rauf 5. M. Ijaz Rauf Muhammad Sheraz
P-39/A, Peoples colony No.1,

23 M/S. RAUF RICE MILLS (PVT) LTD Rauf Plaza, 79-Ferozepur Road, Lahore.

14,044

13,166

20

27,230

14,044

13,186

27,230

24 MUHAMMAD SHERAZ Mandar Gali No.3, Karkhana Bazar, Faisalabad. 25 M/S. MUTABBARIK TEXTILES (PVT) LTD. 574-Ashrafabad, Sheikhupura Road, Faisalabad.

2,343

2,343

2,343

2,343

Faisalabad.

1. Ali Muhammad (Late) 2. Amjad Pervaiz 3. Shafqat Pervaiz 4. Tahir Pervaiz 1. Muhammad Anwar 2. Muhammad Iqbal

Ghulam Muhammad Ali Muhammad (Late) Ali Muhammad (Late) Ali Muhammad (Late) Ghulam Muhammad Ghulam Muhammad

5,509

5,509

5,509

5,509

26 M/S. G. F. RUBBER INDUSTRIES 697, Ayub Colony, Jhang Road, Faisalabad. 27 M/S. TOP COTTON GINNING (PVT) LTD. Chak No. 251/GB, Oggi, Distt. Toba Tek Singh.

9,448

9,448

9,448

9,448

1. Faqir Muhammad 2. Iqbal Khalid 3. Khalid Rasool Mohsin 4. Mrs. Naveed Akhter 5. Shafqat Rasool 6. Mrs. Surraya Shafqat 1. Shoaib Ahmed Faridi 2. Yahya Ahsan Baig

Rehmat Ali Shah Muhammad Ch. Muhammad Sharif Khushi Muhammad Hafiz Muhammad Ali Shafqat Rasool Shah A. Faridi Mirza Ahsan Baig

7,320

10,246

17,566

7,320

110

10,136

17,566

28 M/S. XEBEC TEXTILES P-2/B, Peoples Colony, Faisalabad.

884

18,856

19,740

884

154

18,702

19,740

(Rupees in Thousand)
Sr. No

Name & Address of the Borrower

Name of Individuals/Partners/ Directors Name

1. Muhammad Naseem Saigol

Father's/Husband's Name

Outstanding Liabilities at Beginning of Year Principal

Intt/Acc/Mup

NIC No. M. Yousuf Saigol M. Yousuf Saigol Abdul Latif Sethi M. Yousuf Saigol Muhammad Naseem Iqbal Ahmed Syed M. Rasheed

Others -

Total 195,072

Principal Written off -

Interest/ Mark up Other Fin. Reliefs Written off Provided 195,072

Total

29 M/S. KOHINOOR INDUSTRIES LIMITED Kohinoor Nagar, Jarranwala Road, Faisalabad.

195,072

195,072

2. Muhammad Azam Saigol 3. Shahid Sethi 4. Mrs. Razia Begum 5. Mrs. Saher Saigol 6. Muhammad Imran Iqbal 7. Syed Haroon Rashid (ICP Nominee) 1. Mian Rashid Arshad 2. Mian Tahir Sadiq

30

M/S. AWAN NATIONAL CEMENT LTD. 5-A, Constitution Ave, F-5/1, Islamabad.

267-91-079295 267-88-061857

Mian Arshad Latif Mian Fazal-ul-Rehman

750

4,799

193

5,742

750

605

4,387

5,742

31 M/S. FAZAL CONSTRUCTION (PVT) LTD. Flat No.2, Shahnawaz Building, Rehmat Lane, Peshawar Cantt. 32 M/S. AL-MUZZAMIL INDUSTRIES (PVT) LTD. Plot No. 232/5-A, Phase-III, Gadoon Amazai, Sawabi. 33 M/S.HUSNAIN ENTERPRISES Chowk BCG Multan, Nawabpur Road, Multan. 34 M/S. ISHAQ & SONS 19/2, Punnu Centre, Montgomery Bazar, Yarn Market, Faisalabad. 35 M/S. ASFI ENTERPRISES 2nd Floor, MCB Building, Hajweri Town, Sargodha Road, Faisalabad.

1. Asghar Ali Ch. 2. Tahir Mehmood

304-51-995005 210-62-001506

Feroz Din Asghar Ali

38,532

48,691

359

87,582

38,532

1,913

47,137

87,582

1. Anwar M. Qazi 2. Riaz Ahmed 3. Mrs. Riffat Riaz Malik Hassan Bux

235-62-000902 232-88-413127 232-49-712354

Mushtaq Ahmed Qazi Mehmood Khan W/o Riaz Ahmed

6,857

8,862

88

15,807

6,857

8,950

15,807

36302-7260689-8 Ghulam Muhammad

1,505

46

1,551

1,551

1,551

Ejaz Ahmed

Muhammad Ishaq

1,117

1,117

1,117

1,117

Muhammad Arif

244-91-083070

Niaz Muhammad Sheikh

810

20

830

830

830

36 M/S.KOSHARMAN LATEX (PVT) LTD. 1. Zulfiqar Abbasi Bong Kanal road, Mangla. 2. Shahnawaz Khan
3. Dr. Tajamal Hussain Rathore

4. Muhammad Aslam Butt 5. Ghulam Mustafa 37 QAMAR-UL-BARI FAROOQI Room No.206, Islamabad Stock Exchange Building, Islamabad. 38 M/S. ALI INTERNATIONAL E-37-1, Culshan-e-Iqbal, Karachi. 39 M/S. ARAIN CORPORATION
230-Jinnah Avenue, Near Amin Mosque,

701-85-072106 701-93-074892 701-81-480609 300-34-023073 212-44-087564

M. Siddique Khan Muhammad Yunus Ghulam Hussian Sanaullah Butt Abdul Hai

1,977

1,977

1,977

1,977

Qamar-ul-Bari Farooqi

219

614

833

219

614

833

1. Syed Shahid Ail (Late) 2. Syed Zahid Ali Waheed Ali

518-90-054078 518-93-054079 519-64-259665

Syed Shafqat Ali Syed Shafqat Ali Ch. Muhammad Ali

286

1,148

1,434

286

1,148

1,434

1,590

55

1,645

443

1,202

1,645

Model Colony, Karachi. 40 M/S. H. A. REHMAN & SONS 9-Al-Hameed Market, Mission Road, Karachi. Abdul Hamid Gung Abdul Rehman 585 585 585 585

(Rupees in Thousand)
Sr. No

Name & Address of the Borrower

Name of Individuals/Partners/ Directors Name 1. Ahmed Nadeem Jamal 2. Akhtar Nazir Khan 3. Humaira Akhtar NIC No. -

Father's/Husband's Name

Outstanding Liabilities at Beginning of Year Principal

Intt/Acc/Mup

Others -

Total 978

Principal Written off 288

Interest/ Mark up Other Fin. Reliefs Written off Provided 690

Total

41 M/S. MINACO FABRICS LIMITED. Shahdin Building, Block-6, Shahrae Quaid-e-Azam, Lahore. 42 M/S.NEW GENERAL IRON MERCHANTS 117-PECO Road, Badami Bagh, Lahore. 43 M/S.KHABEER TRADING CORPORATION 7/8, Bahawalpur Block, Fortress Stadium, Lahore.

288

690

978

1.Khalid Mehmood Ch. 2.Shahid Mansoor Ch.

Ch. Ghulam Hussain Ch. Ghulam Hussain

1,277

17

1,294

1,294

1,294

1.Mrs. Zahida Imtiaz 2.Haroon Imtiaz

Imtiaz Majeed Imtiaz Majeed

750

2,079

2,829

750

691

1,388

2,829

44 M/S.SADOON TEXTILE INDUSTRIES (PVT) LIMITED 1. Sh. Fazal Hussain 57-Main Road, Samanabad, Lahore. 2. Sh. Ahsan Fazal 3. Mrs. Sabrina Sheikh 4. Sh. Sadoon Fazal 5. Mrs. Sardar Akhter 45 M/S.PAK GHEE INDUSTRIES (PVT) LIMITED. 57-Main Road, Samanabad, Lahore.

Sh. Zahoor-ud Din Sh. Fazal Hussain W/o Sh. Sadoon Sh. Fazal Hussain W/o Sh. Fazal Hussain

9,284

11,311

20,595

276

1,832

9,479

11,587

1. Sh. Fazal Hussain 2. Sh. Ahsan Fazal 3. Mrs. Sabrina Sheikh 4. Mrs. Sardar Akhtar 5. Atta Ullah 6. Murtaza 5. Sh. Sadoon Fazal 1. Ms. Sumaira Aftab

300-50-326880

Sh. Zahoor-ud Din Sh. Fazal Hussain W/o Sh. Sadoon W/o Sh. Fazal Hussain Sh. Fazal Hussain Aftab Ahmed

11,995

25,008

37,003

3,293

21,715

25,008

46 M/S. A. S. CORPORATION Rashid Minhas Road, Small Industrial estate, Sialkot. 47 M/S. GADOON SYENTHETIC MILLS LTD. Bhimber Distt. Mirpur AJK.

817

3,271

4,088

817

482

2,789

4,088

1. Arshad Ali Ch. 2. Ms. Rizwana Arshad 3. Ms. Fareeda Khanum 4. Javaid Ilyas Butt 5. Ms. Farzana Butt 6. Syed Wajahat Ali 7. Azhar Butt

Sh. M. Sharif Arshad Ali Ch. Arshad Ali Ch. Fazal Elahi Butt Javaid Ilyas Butt Syed Ali Abdul Rashid Butt

10,302

24,970

35,272

10,302

1,955

23,015

35,272

48 M/S. KHOKHAR STRAW BOARD (PVT) LTD. 59/III, Industrial estate, Hattar.

1. Muhammad Afzal Khokhar

2. Muhammad Raza Khokhar

3. Zafar Mahmood Khokhar 49 MEHBOOB RABBANI Stock Exchange, Islamabad. 50 MUHAMMAD WASEEM Shop No. 2, Street No.7, Hannan Market, Yarn Market, Faisalabad. Mehboob Rabbani

210-87-516617 124-49-002096

Haji Allah ditta Haji Allah ditta Haji Allah ditta Pir Ghulam Rabbani

716

1,787

39

2,542

716

244

1,582

2,542

259

497

22

778

259

103

416

778

Muhammad waseem

246-91-072204

Hafiz Ghulam Rasool

1,083

32

1,115

97

1,018

1,115

51 M/S. PASHA FARMS 1. Imran Ali Pasha Chak No. 219/JB, District Tehsil Jhang, 2. Riffat Ali Pasha

Abdul Latif Khan Abdul Latif Khan

1,828

68

1,896

1,896

1,896

(Rupees in Thousand)
Sr. No

Name & Address of the Borrower

Name of Individuals/Partners/ Directors Name Abdul Rashid NIC No. -

Father's/Husband's Name Mubbarik Ali

Outstanding Liabilities at Beginning of Year Principal 78

Intt/Acc/Mup

52 M/S. HAROON CORPORATION Street # 02, Montgomery Bazar, Faisalabad. 53 M/S. N. H. SHAHANI & COMPANY 309, Model Town, Faisalabad.

1,310

Others 65

Total 1,453

Principal Written off 78

Interest/ Mark up Other Fin. Reliefs Written off Provided 221 1,154

Total 1,453

1. Javaid Nisar 2. Syeda Shahida Jabeen 3. Zahid Nisar 4. Mst. Zakia Bibi

Syed Nisar Hussain Shah Syed Nisar Hussain Shah Syed Nisar Hussain Shah Syed Nisar Hussain Shah

936

936

936

936

54 M/S. MUHAMMAD NAZIR & JAMILA KANWAL Photo Fast Colour Labartory, College Road, Sargodha. 55 MUHAMMAD NADEEM Muhammad Din Colony, Canal Bank, Harbanspura, Lahore. 56 M/s. Farooq Traders P-72, Gole Cloth, Faisalabad 57 USMAN GHANI PATEL (EX STAFF) B-3, Noman Garden, Abul Hassan Isphahani Road, Gulshan-e-Iqbal, Karachi 58 M/s.Shabbir Associates P-234, Tikka Gali., Montgomery Bazar, Faisalabad 59 M/s. .Papa Sallies Dairy Products
Chak No. 310/JB, Toba Tek Singh Road,

1.Chaudhary Muhammad Nazir

2. Mst. Jamila Kanwal

Chaudhary Wali Muhammad Chaudhary Muhammad Nazir

667

667

667

667

Muhammad Nadeem

35201-1547226-1 Chirgh Din

995

995

995

995

Muhammad Farooq

33100-0735624-3 Ahmad Din

11,995

2,292

14,287

603

603

Usman Ghani Patel (Ex Staff)

Ibrahim Patel

539

88

627

539

88

627

Zain-ul-Abbidin
39-A, Jinnah Colony Faisalabad

322-61-443535

Muhammad Saeed

16,405

16,623

87

33,115

14,961

14,961

Saeed Ahmed Alamgir

246-91-072204

hafiz Ghulam Rasool

1,995

2,868

150

5,013

1,995

240

2,778

5,013

Gojra 60 M/s. .Delta Tyers & Rubber Co Ltd

Central Chambers, Irland, Karachi

1. Brig. Aziz-ur-Rehman 2. Iftekhar Ahmed Khan 3. Mrs. Iftekhar Tariq 4. Iqtidar Ahmed Ch 5. Mrs. Naheed Iqtidar 6. rao Saleem Khan 7. S. Faiq Hussain 8. S. I. Cheema 9. Tariq Ahmed Lodhi

16,062

38,204

200

54,466

16,062

38,404

54,466

61 M/s. Progressive Watch Mfg (Pvt) Ltd

Plot No. 181, Phase IV, Industrial estate,

Gadoon Amazai, Distt Swat

1. Mubin Ahmed 2. Zafar Iqbal 3. Aqeel Ahmed 4. Kafeel Ahmed 5. Shaukat Iqbal

501-37-156722 511-49-086707 516-53-157273 516-58-256735 203-54-070804 Abdul Qadir

5,809

11,386

42

17,237

5,809

1,024

10,404

17,237

62 M/s. Modern Industries Fazal-e-Khaliq Modern House, 63-64 Abaseen Market,

Mangora Swat

1,077

10,613

11,690

1,077

717

9,896

11,690

63 M/s. Mian Traders Fida Chowk, Mailsi

1. Mumtaz Ahmed 2. Riaz Ahmed

325-74-200999 325-57-007781

Pir Bukhsh Haji Abdul Sattar

1,198

1,045

39

2,282

1,198

11

1,073

2,282

(Rupees in Thousand)
Sr. No

Name & Address of the Borrower

Name of Individuals/Partners/ Directors NIC No. 45645-2314655-6 54564-1355589-6 46548-7444642-3 41564-1321315-4 35202-1548478-5 25204-1151561-3 35005-6662448-6 35020-24566442-2 272-92-508972 -

Father's/Husband's Name Ghulam Rasool Muhammad Rasool Ghulam Rasool Shafqat Rasool Ehsan Elahi Ehsan Elahi Jehangir Elahi Ehsan Elahi Jehangir Elahi -

Outstanding Liabilities at Beginning of Year Principal 6,563

Intt/Acc/Mup

Name 64 M/s. Jubilee Paper Board & Mills Ltd 1. Amjad Rasool 2. Ghulam Rasool 3. Khalid Rasool 4. Ms. Zohra Khatoon 5. Ghulam Haider 6. Javed Ahmed 7. Ashraf Ali 65 M/s. Greentech Pakistan Ltd. 31/C,1-Ghalib Road, Gulberg-III,
Lahore

9,726

Others -

Total 16,289

Principal Written off 6,563

Interest/ Mark up Other Fin. Reliefs Written off Provided 68 9,658

Total 16,289

1. Jehangir Elahi 2. M. Ashfaq Nadeem 3. Alamgir Elahi 4. Amir Jehangir 5. Tariq Latif 6. Tanveer Elahi 7. Ahmed Jehangir 8. Shahrukh Elahi 9. Sh. Muhammad Ashraf

58,227

7,732

65,959

58,227

7,732

65,959

66 M/s. Montgomery Flour & General Mills Ltd.

1. Mian Basharat Shafi 2. Mian Sadaqat Shafi 3. Mrs. Farhat Basharat 4. Mrs. Aisha Sadaqat 5. Sh. Kamran Shafi 6. Sh. Faisal Shafi
7. Mrs. Tehmina Khalid Gulzar

56446-4646466-6 33358-5812127-0 35646-6446456-4 35408-5646546-5 34454-6465464-5 56646-4664554-0 274-50-144318 274-87-639574 274-20-144315 274-89-363589

Muhammad Shafi Sheikh Mian Muhammad Shafi Mian Mashrat S. M. Shafi Mian Basharat Shafi Ghulam Sadiq Kh. Ghulam Nabi Sadiq Mehmood

19,396

27,537

46,933

19,396

27,537

46,933

67 M/s. Fair Tech Electronics (Pvt) Ltd

Industrial Estate, Kot Lakhpat, Lahore.

1. Rasheed Sadiq 2. Zafar Alam Ahsan 3. Ghulam Sadiq 4. Mujeeb Sadiq

3,545

7,930

11,475

3,545

1,212

6,718

11,475

68 M/s. National Assets Leasing Corporation Limited

9th Floor, Lakson Square Building No.1,

265-R. A. Lines, Karachi

1. Zaigham-ul-Naeem 2. M.A. Rehman 3. Mustafa Ehsan 4. Afshar Amin 5. Mrs. Sobia Waseem 6. Ms. Shama Ehsan 1. Nafees-ur-Rehman
2. Mirza Mubashir Baig Barlas

415-85-146957 517-91-367052 451-91-250964 451-92-296018 451-976-297932 -

Jan Alam Jan Alam Jan Alam Roshan Ali Roshan Ali -

1,103

6,572

7,675

1,103

2,880

3,692

7,675

69 M/s. Apex Fabrics Nabika Square, G-5, Central

Commercial Area, Shaheed-e-Millat

11,160

1,319

12,479

11,160

1,319

12,479

Road, Karachi

3. Iftekhar Ahmed 4. Naeem Ahmed 5. Waseem Ahmed

6. Mirza Muzaffar Baig Barlas

7. Najeeb-ur-Rehman 70 M/s. Fateh Sports Wear Ltd Mirpur Khas Road, Hyderabad 1. Rauf Alam 2. Aftab Alam 3. Saeed Alam 4. Muhammad Mohsin 5. Faraz Alam 6. Muhammad Naveed 7. Mrs. Najma Roshan

63,247

4,823

68,070

63,247

212

4,611

68,070

(Rupees in Thousand)
Sr. No

Name & Address of the Borrower

Name of Individuals/Partners/ Directors Name 1. Jan Baljet 2. Farrukh R. Shaikh 3. Rasheed Hassan 4. Mehboob Saqib 5. Habib-ur-Rehman 6. Daniel Zuegar 7. David C. Gore
1. Sardar M. Jaffar Khan Laghari 2. Sardar M. Umer Khan Laghari 3. Sardar Yousuf Khan Laghari

Father's/Husband's Name Sh. R. Rafiq Ahmed Hassan Abdul Rehman Khan Stanly C. Gore inam Ullah Khan

Outstanding Liabilities at Beginning of Year Principal 112,953

Intt/Acc/Mup

NIC No. P # 201288260 270-56-158711 517-87-191798 272-54-038138 101-56-686535 P # 8969703 P # 702115127 409-86-104652

Others -

Total 134,302

Principal Written off 112,353

Interest/ Mark up Other Fin. Reliefs Written off Provided 21,349

Total 133,702

71 M/s. Duty Free Shops Ltd Suite No. 504, 5th Floor
Fayyaz Centre, SMCHS, Karachi

21,349

72 M/s. Choti Textile Mills 24-Main Gulberg, Lahore

3,815

44,975

48,790

3,231

44,975

48,206

4. Bashir Ahmed 5. Hussain Bux

6. Muhammad Saleem Akhtar

7. Haji Muhammad 73 M/s. Hafiz Medical Store Clock Tower Sukkur 74 Jamshed Chaudhary House # 35 D - 1 Sir Syed Road Gulberg III, Lahore 75 M/s. Sun Flow Citruss Ltd Bridge Colony, Lahore Hashmat Ullah Khan

400

2,859

53

3,312

250

2,912

3,162

Jamshed Chaudhary

380

792

1,172

380

792

1,172

1. sardar Fida hussain 2. Munir A. Khan 3. Mohammad H. Noman Tariq Mehmood 1. Muhammad Afzal Khan 2. Ghulam Dastagir 3. Ghulam Subhani Khan 4. Ghulam Rasool Khan 1. SDA Original Sponsor (Buyer of the unit) 2. Saleemur Rehman 3. Haji Masoodur Rehman Shakoor Arain

409-90-029619

Ch. Manzoor Ahmed

1,373

1,373

1,373

1,373

76 M/s. Khalil Jute Mills Industries Ltd 44-Gulberg-V, Lahore

2,303

2,303

2,303

2,303

77 M/s. Saleem Tanneries Jehangira Swabi

10,142

10,142

10,142

10,142

78 M/s. Shahzad Enterprises B-53, S.I.T.E., Sukkur 79 M/s. Qureshi & Sons 80 M/s. Universal Traders Muhammad Sharif Siddiqui Furnishing House, chowk Fawara, Abdali Road, Multan. 81 M/s. Yousuf Rice Cotton Factory Mouza Coath Bajan Near Railway Station, Bahawalpur. 82 M/s. Usman Traders 83 Khawaja Zahid Mehmood House # 87 Block B Gulberg III, Lahore

2,852

2,270

5,122

1,036

1,036

Aayaz Ahmed Qureshi Muhammad Shafi Siddiqui

322-93-904737 330-91-008924

Muhammad azeem Qureshi Muhammad Siddique

725 1,961

1,704 3,715

79 56

2,508 5,732

725 1,961

206 -

1,577 3,771

2,508 5,732

1. Muhammad Imran 2. Mehmooda Begum

344-88-121352 344-60-197500

Ch. Attaullah W/o Ch. Riaz Ul Haq

1,472

1,504

62

3,038

1,472

1,566

3,038

Muhammad Usman Khawaja Zahid Mehmood

322-61-448942

Muhammad Younis hussain

1,240 196

1,923 469

17 -

3,180 665

1,240 196

1,940 469

3,180 665

(Rupees in Thousand)
Sr. No

Name & Address of the Borrower

Name of Individuals/Partners/ Directors Name Ahmed Kamal NIC No.

Father's/Husband's Name

Outstanding Liabilities at Beginning of Year Principal 268

Intt/Acc/Mup

84 Ahmed Kamal House # 650, Block D Faisal Town Lahore 85 Syed Afzal Hussain House # 82 B DHA Lahore 86 M/s. Karachi General Electric Store Bhowana Bazar,Faisalabad. 87 M/s. Prometals Ltd Lahore Sheikhupura Road, Lahore

585

Others -

Total 853

Principal Written off 268

Interest/ Mark up Other Fin. Reliefs Written off Provided 585

Total 853

Syed Afzal Hussain

242

559

801

242

559

801

Muhammad Akram

33100-3139478-9 Bashir Ahmed Ch

841

841

841

841

1. Gohar Yasin Chaudry 2. Khalid naeem Chaudry 3. Shaukat Ali Chaudry Muhammad Jehanzeb

Haji Umer Gul

883

883

883

883

88 Muhammad Jehanzeb Mohallah Afridi Khan, Dabgari Gate, Peshawar 89 M/s. Ave Maria Traders No-219, Prince Street, Colombo-11

95

515

610

95

55

460

610

Mr.Joshep Carmel Edisor Coonghe

733370416X

1,431

1,431

1,431

1,431

No-93/4, Brass Founder Street, Colombo-13 Nasim Ahmed 221-75-036650 Sardar Ahmed 2,000 3,753 30 5,783 2,000 625 3,158 5,783

90 M/S. VANIKA ENGINEERS

26-Satellite Town Rawalpindi

91 M/S.PIR BUX COMPANY Mauza Muhammad Shah, Mohallah Rasoolpura, Mailsi, Distt Vehari 92 M/s.Junaid Flour Mills Korangi Creek, Karachi Muhammad Arshad 325-93-009596 Pir Bux 1,541 1,885 65 3,491 1,541 286 1,664 3,491

1. Hajiani Ghulam Fatima(Expired) 2.Malik Faiz Muhammad (Expired)

3. Khalid Abbas 4. Shagufta Asad

414-42-145485 516-88-148623 414-04-06703 414-90-175547

W/o M. Ramzan Malik Muhammad Malik Muhammad W/o Asad Abbas

2,700

1,650

4,350

2,700

1,650

4,350

93 M/s. Prudential Investment Bank Ltd 1. Rashidullah Yaqoob Mehersons Estate, Block-1, 2. Sanober Akhtar Yaqoob Talpur Road, Karachi. 3. Muhammad Asif Dar

26,144

7,342

33,486

26,144

2,017

5,325

33,486

94

M/s.Gojra Cotton Ginning Pressing Factory Oil Mills Jhang Road, Gojra.

1.Abdul Aziz Rafique 2.Abdul Qadir 3.Abdul Rashid 4.Hajiran Bibi 5.Hameeda Begum 6.Rafiqua Bibi 7.Rashida Bano Abdul Aziz Rafique

Naimat Ullah Naimat Ullah Naimat Ullah Shah Muhammad Naimat Ullah Ali Muhammad Naimat Ullah Naimat Ullah

2,176

5,636

176

7,988

2,176

5,812

7,988

95 M/s. Abdul Aziz Rafique Main Road, Hafeez Park, Gojra. 96 M/s. Sarroya Textile Industries Pull Abdullah , Samundri Road Faisalabad.

2,385

3,683

162

6,230

2,385

3,845

6,230

1.Muhammad Shahid Ali 2. Tariq Ali P-586, St. No. 3, Nisar Colony, Faisalabad

Ch. Muhammad Ali Ch. Muhammad Ali

1,497

1,800

54

3,351

1,497

1,854

3,351

(Rupees in Thousand)
Sr. No

Name & Address of the Borrower

Name of Individuals/Partners/ Directors Name NIC No. -

Father's/Husband's Name Abdul Karim

Outstanding Liabilities at Beginning of Year Principal 998

Intt/Acc/Mup

Others 28

Total 2,107

Principal Written off 998

Interest/ Mark up Other Fin. Reliefs Written off Provided 1,109

Total 2,107

97

M/s. National Sweet & Confectionery Nasim Javaid Works 490, Brinlow Street, Rawalpindi Cantt. Faisal Ahmed Asghar

1,081

98 M/s. Khokar Traders Mouza Bailail Old Shujabad Road, Multan 99 M/s. Shafique Sons Feed Industries (Pvt) Ltd 42-Eidgah Railway Road, Bahawalpur

323-90-684426

Malik Rashid Asghar

2,700

3,856

60

6,616

2,700

3,916

6,616

1. Khalid Mehmood 2. Ubaid-ur-Rehman 3. Mst Nasreen Kauser 1. Qasim Bin Sajjad 2. Qasima Sajjad Sohail Ahmed Saleem

326-58-111401 344-60-075073 344-92-285635 316-77-518747 310-76-286628 270-56-590587

Fazal Ahmed Shafiq-ur-Rehman w/o Ubaid -ur-Rehman Sardar Sajjad Hussain W/o Faisal Raza M. Saleem Akbar

4,000

4,989

481

9,470

4,000

157

5,313

9,470

100

M/s. SS Tangwani Cotton Ginning Pressing & Oil Mills Pir Jaggi Road, Kot Sultan

5,499

5,184

267

10,950

5,499

5,451

10,950

101 M/s. Vibration Audio New Garden Town, Lahore 102 M/s. Asif Textile Mills (Pvt) Ltd Lawrance Road, Lahore

1,262

200

1,462

1,262

200

1,462

1. Attiq ur Rehman 2. Muhammad Tufail 3. Rahat M. Manzoor

453-21-321321 Muhammad Tufail 35202-4545641-2 Muhammad Bashir 454-13-213211 -

1,186

101

1,287

1,186

101

1,287

103 M/s. National Frutose Company Ltd 1. Shakiullah Durrani Kashif Centre, Shahrae Faisal, Karachi 2. Arshad Alam 3. Muhammad Yamin 4. Mrs. R. Kamal

3,306

3,306

3,306

3,306

104 M/s. Staple Food F-307, S.I.T.E., Karachi. 105 M/s. Modern Soap Ind. (Pvt) Ltd. Small Industrial Estate Gujranwala 106 M/s. Frontpage Leather Co. Model Town, Lahore 107 M/s. Worldover Enterprises (Pvt) Ltd. Muhallah Gojarpura,6th K. M. Jhung Road,Faisalabad.

Imran Rasheed

42201-31676513 Rasheed

900

514

1,414

900

514

1,414

1. Sh. Sadiq Ali 2. Sh. Muhammad Younas 3. Sh. Muhammad Yousaf 1.Syed Qaiser Mehdi 2. Syed Nadeem Akbar 1. Abdul Aziz Shaikh 2. Abdul Majeed Shaikh 3. Abdul Qadeer Shaikh 4. Abdul Rasheed Shaikh 5. Haji Muhammad Siddique.

44545-4313133-2 Sh. Abdul Ghani 35202-6448469-5 Sh. Abdul Ghani 54544-4123123-1 Sh. Abdul Ghani 226-54-162426 300-63-134534 33100-5336859 33100-16959043 33100-14397309 33100-54025141 33100-15336859 101-45-478911 701-57-527083 701-42-423660 701-92-289011 703-76-011688 703-48-011686 701-51-052413 322-55-531293 322-58-531294 Zafar Hussain Bukhari Muhammad Akbar Haji Muhammad Sadiq Haji Muhammad Sadiq Haji Muhammad Sadiq Haji Muhammad Sadiq Sheikh Ghulam Qadir Ali Muhammad Khan Noor Akbar Khan M. Younus Khan (Late) Khan Muhammad Khan Muhammad Maqsood Khan Itar Khan Sardar Muhammad feroz Khan -

1,187

1,187

1,187

1,187

4,172

4,172

4,172

4,172

7,868

65,406

233

73,507

7,868

65,639

73,507

108 M/s. Ghazi Vegitable Ghee & oil Mills Ltd 1. Aziz Muhammad Khan 16 Street, no. 37, F-8/1, Islamabad. 2. Bashir Ahmed 3. Mrs. Hamida Begum 4. Javed Mehmood Khan 5. Khalid Abbasi 6. Maqsood khan 7. M. Sagheer Khan 109 M/S. New Qureshi Agro Traders 1. Ehtizaz ul Haque 2. Itzaz ul Haque

725

725

725

725

5,692

6,376

227

12,295

5,692

6,603

12,295

(Rupees in Thousand)
Sr. No

Name & Address of the Borrower

Name of Individuals/Partners/ Directors Name 1. Ahmed Hussain Khan 2. Habib ur Rehman NIC No. -

Father's/Husband's Name Ghulam Hussain Mohammad Ibrahim

Outstanding Liabilities at Beginning of Year Principal Intt/Acc/Mup

110 M/s. Hakim Ibrahim Engineering Works Odian, street no.1, Sumandri Road, Faisalabad

593

Others -

Total 593

Principal Written off -

Interest/ Mark up Other Fin. Reliefs Written off Provided 593

Total 593

111 M/s. Allah Wasaya Enterprises 1. Malik Wajid Hussain Suraj Kund Road, Chowk Shah Abbas, 2. Malik Waseem Sarwar Multan 112 M/s. Fecto Sugar Mills Darya khan Distt Bhakkar
1. Munawar Ali Fecto

325-74-200999 329-61-554855

12,915

15,278

64

28,257

915

900

14,442

16,257

2. Kaisar Mehmood Fecto 3. Yahya Ahmed Bawany 4. Moin A. Haroon 5. James R. Richards 6. Imran Azim 7. Fazlal-ur-Rehman 1. M. Iqtidar Pervaiz 2. Khuram Pervaiz 3. Nazneen Pervaiz 4. Mian Pervaiz Aslam 5. Mian Javed Aslam 6. Salah ud din keen 7. Mian Ayaz Karim 8. Mian Aftab Ahmad 1. Babar Agha 2. Sohail Hameed

42201-6493731-7 61101-693382-1 42301-0531483-3 42000-0541483-3 35202-728505703 42301-1068685-3 37405-0593333-1 270-35-364853 270-61-364856 1.12145E+12 271-56-329871 271-65-268741 270-054-050987 270-55-038693

Ghulam Muhammad Fecto Munawar Ali Fecto Ahmed Bawany Ali Muhammad Haroon M.B. Richards Mohammad Abdul Aziz Abdul ghafoor Khan Aziz Mian Iqtidar Pervaiz Mian M. Aslam Abdul Karim Muhammad Khan Fakhar Hussain Col. Hameed Ullah Khan

29,032

29,032

29,032

29,032

113 M/s. Regency Textile Mills Ltd. Arif Jan Road, lahore cantt.

11,283

51,307

62,590

11,283

51,307

62,590

114 M/s. High Noon Textile 25-K Multan Road Lahore. 115 M/s. Rizwan Textile Mills Ltd No. 4, first Floor, malik complex, 80, West Blue Area, Islamabad

56,951

33,885

90,836

56,951

33,885

90,836

1. Kamran Sadiq 2. Muhammad Munsif 3. Mst. Munawar Begum 4. Miss Shazia Sadiq
5. Muhammad Sadiq

6. Mrs. Bushra Kamran 7. Rizwan Sadiq 116 M/s. Abdul Majeed Construction Co. 1. Abdul Majeed 2. Sohail Majeed 117 M/s. Wajid Farooq Traders Sargodha Road Mianwali 118 M/s. J. K. Sons (Pvt) Ltd 3-1/A, Peoples Colony, Faisalabad M. Farooq Khan

221-92-5884744 37405-03114737 61101-2967863 221-77-693829 61101-8663515 61101-5463383 61101-6788739 0344-43014681 344-93-014682 -

Muhammad Sadiq Muhammad Afsar W/O Muhammad Sadiq Muhammad Sadiq Haji Malik Abdullah Khan W/O Kamran Sadiq Muhammad Sadiq -

8,262

8,262

8,262

8,262

194

1,176

1,370

194

1,176

1,370

717

717

717

717

1. Abid Anwar 2. Faiq Javaid 3. Javaid Anwar 1. Fahad Kundi 2. Syed Muhammad Yousuf 3. Adnan faiz 4. Nazir Ahmed 5. Irfanullah Khan Kundi
6. Farida Shaikh

40,042

106,000

146,042

40,042

106,000

146,042

119 M/s. Amazai Textile Mills Ltd 1-B, 2nd Floor, Pak Chambers, 7-West Waharf Road, Karachi

7. Mrs, Sadozai

2,401

4,175

114

6,690

2,401

4,175

114

6,690

120 M/s. Kiani Poultry Farms Village Kot Rajgan, PO Sohawa Via Saigolabad, Chakwal

Muhammad Taj Kiani

Karam Khan

1,000

1,531

25

2,556

1,000

217

1,339

2,556

(Rupees in Thousand)
Sr. No

Name & Address of the Borrower

Name of Individuals/Partners/ Directors Name NIC No. 45645-2314655-6 54564-1355589-6 46548-7444642-3 41564-1321315-4 -

Father's/Husband's Name

Outstanding Liabilities at Beginning of Year Principal

Intt/Acc/Mup

Others -

Total 16,289

Principal Written off 3,903

Interest/ Mark up Other Fin. Reliefs Written off Provided 68 9,658

Total

121 M/s. Jubilee Paper Board & Mills Ltd 1. Amjad Rasool 2. Ghulam Rasool 3. Khalid Rasool 4. Ms. Zohra Khatoon 5. Ghulam Haider 6. Javed Ahmed 7. Ashraf Ali 122 M/s. Apex Fabrics Nabika Square, G-5, Central
Commercial Area, Shaheed-e-Millat

Ghulam Rasool Muhammad Rasool Ghulam Rasool Shafqat Rasool Sardar Mehmood Ahmed

6,563

9,726

13,629

1. Nafees-ur-Rehman
2. Mirza Mubashir Baig Barlas

11,160

1,319

12,479

9,629

1,319

10,948

Road, Karachi

3. Iftekhar Ahmed 4. Naeem Ahmed 5. Waseem Ahmed

6. Mirza Muzaffar Baig Barlas

7. Najeeb-ur-Rehman 123 Sardar Shakeel Mehmood Stock Exchange, Islamabad Sardar Shakeel Mehmood

3,024

6,496

128

9,648

3,024

557

6,067

9,648

Total

819,831

1,168,047

5,451

1,993,329

749,712

47,213

1,121,613

1,918,538

Annexure - IV
Disposal of operating fixed assets (refer note 11.2.3) Description Sales proceeds/ insurance claim --------------------- (Rupees '000) --------------------Cost Accumulated depreciation Book value Mode of disposal/ settlement Particulars of buyers

Furniture and fixture, electrical, computers and office equipment

Items having book value in aggregate more than Rs. 250,000 or cost of more than Rs. 1,000,000 Items having book value of less than Rs. 250,000 or cost of less than Rs. 1,000,000

141,576 78,915

140,287 52,676

1,289 26,239

260 31,341

Auction Insurance Claims

Adam Traders M/s Adamjee Insurance Company Limited

35,034 Vehicles
Suzuki Cultus Toyota Corolla Toyota Corolla Suzuki Cultus Honda Accord Suzuki Cultus Suzuki Cultus Suzuki Cultus Toyota Corolla Suzuki Cultus Honda Civic Suzuki Cultus Honda Civic Suzuki Cultus Suzuki Cultus Toyota Corolla Suzuki Cultus Honda Accord Suzuki Cultus Suzuki Cultus Suzuki Cultus Suzuki Cultus Suzuki Cultus Toyota Corolla Suzuki Cultus Honda Civic Suzuki Cultus Suzuki Cultus Honda Civic Suzuki Cultus Suzuki Cultus Honda Civic Suzuki Cultus Suzuki Cultus Suzuki Cultus 609 939 939 609 2,410 612 620 609 969 620 963 620 1,043 612 620 969 615 2,402 612 604 609 609 609 939 609 1,043 620 609 1,043 620 620 1,043 609 609 609

33,825
390 563 551 235 868 106 149 414 491 190 590 190 306 114 190 129 66 160 114 604 609 609 609 939 609 306 174 244 320 190 190 320 609 609 609

1,209
219 376 388 374 1,542 506 471 195 478 430 373 430 737 498 430 840 549 2,242 498 737 446 365 723 430 430 723 -

5,526
250 411 460 388 1,542 515 471 218 509 436 421 462 771 498 445 783 492 1,921 506 147 140 207 202 224 194 743 460 383 728 452 445 735 170 153 151 New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy Ms. Maggie Campos VP Iqbal Ganatra SVP Syed Iftikhar H. Rizvi EVP S.M.Sufian VP Tahir Hassan Qureshi EVP Hamer Ramzan VP Haider Ali Jafferi VP Rafat Ali Khan VP Aali Shafi SVP Ms. Sara Ahmed VP Perveez Saeed SVP Muhammad Siddiqui VP Abdul Razzak Kapadia SVP Zaheer Maqbool VP Ms. Asma Mazhar VP Farooq Ahmed Malhi SVP Ms. Naveen Ahmed VP Sheikh Tahir Khalil EVP Umair Ismail VP M.Ishifaq Siddiqui VP Hanif Iqbal Brohi VP Muhammad Ayub VP Muhammad Iqbal VP Abdul Rasheed Baloch VP Syed Ghulam Haider VP Javed Iqbal Bhatti SVP M. Salman Khan VP Muhammad Saleem Baig VP Mashkoor Ahmed Baber SVP Mehfuz-ur-Rehman VP Shahid Aziz VP Perwez Akhtar SVP Rizwan Hussain VP Ahmir Mansoor SVP Aurangzab Awan VP

Description

Honda Civic Toyota Corolla Suzuki Cultus Honda Civic Toyota Corolla Suzuki Cultus Toyota Corolla Suzuki Cultus Suzuki Cultus Honda Civic Suzuki Cultus Honda Civic Toyota Corolla Suzuki Cultus Suzuki Cultus Toyota Corolla Honda Civic Honda Civic Suzuki Cultus Suzuki Cultus Toyota Corolla Suzuki Cultus Toyota Corolla Toyota Corolla Toyota Corolla Toyota Corolla Suzuki Cultus Suzuki Cultus Suzuki Cultus Toyota Corolla Honda Civic Suzuki Cultus Suzuki Cultus Suzuki Cultus Suzuki Cultus Suzuki Cultus Suzuki Cultus Suzuki Cultus Honda Civic Toyota Corolla Suzuki Cultus Suzuki Cultus Toyota Corolla Suzuki Cultus Toyota Corolla Suzuki Cultus Suzuki Cultus Suzuki Cultus Toyota Corolla Suzuki Cultus Toyota Corolla

Sales proceeds/ insurance claim --------------------- (Rupees '000) --------------------1,043 389 654 682 939 939 232 647 64 583 518 1,038 304 734 750 1,005 80 925 804 615 66 549 496 939 501 438 483 620 190 430 434 615 66 549 494 939 939 228 609 235 374 388 1,043 306 737 763 939 538 401 441 604 266 338 372 609 333 276 329 969 155 814 778 1,002 374 628 657 1,043 375 668 712 620 190 430 445 609 406 203 240 954 432 522 565 620 182 438 468 969 284 685 718 969 155 814 801 969 90 879 775 939 513 426 461 615 131 484 494 609 219 390 428 609 422 187 226 969 284 685 724 1,043 306 737 775 620 190 430 454 620 190 430 464 620 174 446 458 612 106 506 517 647 52 595 521 620 174 446 455 612 106 506 517 1,376 239 1,137 1,156 969 207 762 772 609 333 276 310 604 604 184 1,043 306 737 741 620 132 488 495 969 245 724 733 609 609 199 612 114 498 504 609 382 227 265 939 513 426 468 609 609 162 969 194 775 791

Cost

Accumulated depreciation

Book value

Mode of disposal/ settlement

Particulars of buyers

New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy

Imran Daudi SVP Tariq Qayyum Butt VP Ms. Nilufer Pereira VP Muhammad Zulfiqar SVP Zafar Alam Baig SVP Muhammad Aamir Ilyas VP Syed Nadeem Hussain SVP Kamal Ahmed Khan VP Tasneem Ahmed VP Sheikh Shaukat Hussain SVP Arif Ali Shah SVP Asad Rizwan SVP Ahsan Rasheed Abbasi SVP Muhammad Aslam VP Abdul Aziz Soomro VP Kashif Ahmed SVP Asif Khan SVP M. Saeed Khan Tanoli SVP Valeed Basit Salimi SVP Nisar Akhtar VP Sohail Ahmed Malik VP Rana Anis Aftab VP Muhammad Tariq Mirza VP Mian Asif Iqbal VP Ms. Romana Abdullah EVP Javaid Iqbal SVP Naeem Afzal Khan VP Malik M. Khan VP Javed Iqbal Khan VP Javed Ayaz Khan VP M. Imran Rao SVP Muhammad Abdullah VP Lloyd D' Souza VP Junaid Jafferi VP Farhan Rafiq VP Muhammad Suhail VP M.Arif Nawaz VP Asif Mehmood VP Salman Yaqub Zaidi EVP Imran Rashid EVP-1 Siraj Muhammad SVP M. Israr Khan VP Manoj Kumar Ahuja SVP M. Javed Anwer VP Saad ullah Khan SVP Muhammad Saleem VP Jalal Ud-Din Patoli VP Riaz Alam VP Ghulam Abbas Goraya VP Shafiq Ur Rehman VP Naseer A. Channa VP

Description

Toyota Corolla Suzuki Cultus Suzuki Cultus Toyota Corolla Suzuki Cultus Suzuki Cultus Suzuki Cultus Suzuki Cultus Suzuki Cultus Suzuki Cultus Suzuki Cultus Honda Civic Toyota Carolla Suzuki Cultus Suzuki Cultus Suzuki Cultus Suzuki Cultus Suzuki Cultus Suzuki Cultus Honda Civic Suzuki Cultus Suzuki Cultus Honda Civic Toyota Corolla Suzuki Cultus Toyota Corolla Toyota Corolla Honda Civic Suzuki Cultus Suzuki Cultus Suzuki Cultus Suzuki Cultus Toyota Corolla Suzuki Cultus Honda Civic Honda Civic Honda Civic Toyota Corolla Suzuki Cultus Honda Civic Toyota Corolla Suzuki Cultus Suzuki Cultus Toyota Corolla Suzuki Cultus Honda Civic Suzuki Cultus Suzuki Cultus Toyota Corolla Suzuki Cultus Toyota Corolla

Sales proceeds/ insurance claim --------------------- (Rupees '000) --------------------969 284 685 719 609 382 227 266 607 113 494 502 939 376 563 590 620 190 430 450 647 52 595 518 609 284 325 372 609 406 203 230 647 52 595 522 615 74 541 504 604 330 274 355 1,043 348 695 707 969 116 853 785 615 172 443 443 609 609 178 620 182 438 448 609 609 164 620 190 430 438 652 35 617 524 1,002 441 561 569 609 390 219 296 612 106 506 516 1,002 441 561 604 969 478 491 548 604 322 282 308 969 310 659 688 969 478 491 535 1,002 414 588 639 604 322 282 323 609 609 198 647 35 612 518 610 171 439 444 969 245 724 725 610 73 537 493 1,038 373 665 695 1,038 373 665 686 1,043 306 737 783 939 526 413 444 609 390 219 272 963 629 334 437 979 196 783 794 612 114 498 510 609 398 211 250 939 939 266 609 349 260 319 1,002 481 521 535 620 132 488 501 609 406 203 241 939 526 413 443 612 114 498 501 969 452 517 612

Cost

Accumulated depreciation

Book value

Mode of disposal/ settlement

Particulars of buyers

New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy

Tariq Faiz Querishi VP M. Iqbal Ghaffar VP S. Musharaf Ali VP G.M. Shahid VP Ejaz Fakih VP Usman Siddiqui VP Farooq Amin VP Abdul Hameed VP Nisar Ahmed Farooqui VP Ali Azfar Jafri VP Haider Iqbal VP Mr. Azfar Nomani EVP Syed Aamir Ali Rizvi VP Ms. Shamsunnisa Masood VP Muzaffar Hussain Qarni VP Muhammad Usman VP Rafiq Ather VP M. Yosuf Siddiqui VP Khush Dil Khan VP Imtiaz Ahmed SVP Rafaqat Ahmed VP Sami ud din Khan VP S. Zia Amjad Khan VP Fazal -e - Elahi VP Sher Bahadur VP Amjad Aziz VP Khairullah Khan VP Shafiq ul Rehman SVP Hafiz Muzammil Iqbal VP Badar Hussain VP Asim Zaheer Agha VP Ahmed Javed Qureshi VP Naeem Saigol VP Adnan Humayun VP Usman Hassan EVP M. Numan Chaughtai EVP M. Hamid Yaseen EVP Nasir Ayub SVP S. Jawed Abbas VP Nadeem Ahmed Butt SVP Zafar Iqbal Chatha SVP M. Asim Khan Suri VP Sh. Mujeeb - ur -Rehman VP Sultan Zeb Khan VP Ms. Khalida Adeeb Khanum VP Nadeem Afzal Khan EVP Amin Sukhiani SVP Syed Asim Ali SVP Tauqir Subhani SVP Anees Awan VP Khalid Masood VP

Description

Suzuki Cultus Toyota Corolla Toyota Corolla Suzuki Cultus Honda Civic Toyota Corolla Suzuki Cultus Suzuki Cultus Honda Civic Suzuki Cultus Suzuki Cultus Suzuki Cultus Toyota Corolla Toyota Corolla Toyota Corolla Suzuki Cultus Toyota Corolla Suzuki Cultus Toyota Corolla Toyota Corolla Toyota Corolla Toyota Corolla Suzuki Cultus Toyota Corolla Suzuki Cultus Suzuki Cultus Toyota Corolla Suzuki Cultus Suzuki Cultus Suzuki Cultus Suzuki Cultus Suzuki Cultus Toyota Corolla Suzuki Cultus Toyota Corolla Honda City Suzuki Cultus Suzuki Cultus Honda Civic Toyota Corolla Toyota Corolla Toyota Corolla Toyota Corolla Suzuki Cultus Suzuki Cultus Honda Civic Suzuki Cultus Suzuki Cultus Suzuki Cultus Suzuki Cultus Toyota Corolla

Sales proceeds/ insurance claim --------------------- (Rupees '000) --------------------612 106 506 517 939 939 339 969 245 724 735 620 190 430 451 1,043 375 668 707 1,005 67 938 806 609 609 187 620 174 446 476 1,043 375 668 687 620 182 438 442 609 609 199 652 17 635 526 939 513 426 427 969 90 879 785 969 129 840 806 620 182 438 460 969 103 866 782 652 9 643 522 969 129 840 800 979 196 783 798 939 513 426 501 939 513 426 480 609 609 160 969 413 556 606 631 50 581 514 609 325 284 344 939 513 426 475 609 382 227 275 609 609 190 652 35 617 522 612 106 506 511 612 106 506 516 969 401 568 667 555 96 459 465 969 310 659 695 974 91 883 781 609 203 406 422 631 50 581 511 1,043 362 681 715 939 513 426 511 979 170 809 814 1,005 1,005 804 939 939 283 615 172 443 449 631 50 581 505 1,036 235 801 809 620 190 430 450 615 172 443 457 609 325 284 335 609 325 284 318 969 181 788 803

Cost

Accumulated depreciation

Book value

Mode of disposal/ settlement

Particulars of buyers

New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy

M. Siddiq Darbari VP Mir Javed Hussain SVP Imran Moti VP Sajid Zafar Mansuri VP Nisar Ahmed Sheikh SVP S. Mohammad Ali SVP S.Badaruddin Ahmed VP Rafiq Ahmed Sheikh VP S.M. Arshad SVP A. Karim Agghadi VP Arshad Aziz VP Munib Fayyaz VP Abdul Rauf VP A.Aziz Kalyan SVP Zulfiqar Ali Arain SVP Pervez Zia VP Waqas Mehmood VP M. Ijaz Aziz VP Qazi Zahoor Ahmed VP Rizwan Ali Khan VP Arshad Mehmood VP Amjad Jamal VP Fazal Mehmood VP M. Ehsan Cheema VP Waseem Ahmed Qureshi VP Khadim Hussain VP S. Zia-ul-Hasnain Shamsi SVP Aamir Nawab VP S.M.Saleem Raza Shirazi VP Abdul Mohsin VP Ms. Faiza Zafar VP Ahmed Kamal ud din VP Abdul Qayyum Malik VP M. Saqib Arshad Qureshi VP Ch. Muhammad Ayub VP Ali Shafqat SVP Mansoor Ahmed VP Tanveer Ahmed Khan VP Muhammad Ali Manjee SVP Fatah Muhammad SVP Ali Qasim Gardezi VP Munir Ahmed Saleem EVP Ashfaq Abbas Awan VP Irfan Ahmed Mir SVP M.Rohail Akhtar VP Faisal Ejaz Khan SVP Ayaz Ahmed Jaskani VP Dilshad A Khan Sherwani VP Khalid Farooq SVP Karim ud din VP S. Salman Qutb SVP

Description

Suzuki Cultus Suzuki Cultus Suzuki Cultus Suzuki Cultus Suzuki Cultus Toyota Corolla Honda Civic Toyota Corolla Toyota Corolla Honda Civic Honda Civic Toyota Corolla Honda Civic Suzuki Cultus Toyota Corolla Suzuki Cultus Suzuki Cultus Toyota Corolla Toyota Corolla Suzuki Cultus Toyota Corolla Suzuki Cultus Suzuki Cultus Suzuki Cultus Toyota Corolla Toyota Corolla Toyota Corolla Honda Civic Suzuki Cultus Suzuki Cultus Suzuki Cultus Honda Civic Suzuki Cultus Suzuki Cultus Suzuki Cultus Suzuki Cultus Suzuki Cultus Suzuki Cultus Honda Civic Toyota Corolla Toyota Corolla Suzuki Cultus Honda Civic Suzuki Cultus Suzuki Cultus Suzuki Cultus Honda Civic Suzuki Cultus Honda Accord Suzuki Cultus Suzuki Cultus

Sales proceeds/ insurance claim --------------------- (Rupees '000) --------------------612 114 498 507 647 52 595 520 609 325 284 320 612 106 506 509 615 172 443 456 969 439 530 634 1,371 238 1,133 1,141 969 103 866 785 1,005 54 951 807 1,557 21 1,536 1,246 943 628 315 669 969 349 620 384 1,043 375 668 680 615 164 451 465 969 439 530 581 620 66 554 498 604 330 274 310 939 526 413 507 969 413 556 598 609 333 276 319 969 401 568 627 615 98 517 501 615 172 443 471 604 354 250 289 969 297 672 715 969 323 646 695 939 526 413 484 1,043 306 737 765 615 189 426 461 560 119 441 461 615 82 533 502 1,288 378 910 939 609 284 325 379 612 114 498 512 620 174 446 469 607 105 502 502 612 114 498 502 604 370 234 289 1,043 375 668 679 969 362 607 680 969 220 749 793 615 74 541 567 1,043 362 681 693 620 174 446 446 615 82 533 497 620 174 446 488 1,371 256 1,115 1,134 609 325 284 339 2,402 128 2,274 1,921 609 333 276 315 615 82 533 502

Cost

Accumulated depreciation

Book value

Mode of disposal/ settlement

Particulars of buyers

New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy

Muhammad Suleman VP Muhammad Shoaib VP Syed Tariq Mehmood VP Anwar ul Haq VP Ms. Saamera M. Hassan VP Ashfaq Ahmed Khan VP Ms. Nabeela Ahmed EVP-I Irfan Johar SVP Syed Muhammad Asif VP Munir Ahmed Saleem EVP Mr.Ajmal Anwar Malik SVP Mr. Saeed haider Gardezi VP Ms. Anita Lalani SVP Raza Yousuf VP S.M.Saqlain Naqvi VP Salman Azim VP M.Abid Qureshi VP Wali ullah Khan VP Jahangeer Nazar VP Muhammad Naeem VP Muhammad Azam VP Muhammad Saeed Raja VP Sh. Tahir Iqbal VP M. Qasim Querishi VP Ali Imam Al Hussani SVP Omer Khalid SVP Mir Sajjad Rafiq SVP Naeem Yaqoob Khan SVP Saohail Rashid VP Muhammad Yaqub VP Muhammad Ali Khan VP Salman Zaffar Siddiqui EVP-II Zulfikhar Sani VP Hassan Khawaja VP Khan Afsar Jadoon VP Ms. Tazeen Shahid VP Atif Izhar Syed VP M. Abbas Sharif VP Hashim Khan SVP M. Laiq Marri VP Budhal Mahessar VP Waheed ullah Aftab VP Adam Ahmed SVP Syed Moinuddin VP Saud Sarwar VP Hasnain Afzal VP Farooq Ahmed Khan EVP-1 Khurram Ali Syed VP Zarkham Khan Durrani EVP-11 Arshad Iqbal VP Khawaja Naeemuddin VP

Description

Toyota Corolla Toyota Corolla Toyota Corolla Suzuki Cultus Suzuki Cultus Suzuki Cultus Toyota Corolla Suzuki Cultus Toyota Corolla Suzuki Cultus Suzuki Cultus Suzuki Cultus Suzuki Cultus Suzuki Cultus Toyota Corolla Suzuki Cultus Toyota Corolla Suzuki Cultus Suzuki Cultus Toyota Corolla Suzuki Cultus Suzuki Cultus Suzuki Cultus Mercedez Benz Toyota Corolla Toyota Corolla Toyota Corolla Suzuki Cultus Toyota Corolla Suzuki Cultus Mercedez Benz Toyota Corolla Honda VTI Toyota Corolla Toyota Corolla Honda Civic Honda Civic Honda Civic Honda Civic Suzuki Cultus Toyota Corolla Toyota Corolla Suzuki Cultus Suzuki Cultus Suzuki Cultus Honda Civic Honda Civic Toyota Corolla Suzuki Cultus Suzuki Cultus Suzuki Cultus

Sales proceeds/ insurance claim --------------------- (Rupees '000) --------------------969 362 607 677 1,005 80 925 804 969 207 762 786 612 114 498 498 615 107 508 524 620 83 537 496 969 155 814 787 555 96 459 461 969 233 736 743 609 219 390 419 604 362 242 275 620 174 446 476 609 203 406 442 609 406 203 253 969 181 788 789 623 133 490 488 979 196 783 807 620 190 430 455 609 406 203 262 969 375 594 613 647 52 595 522 615 172 443 470 609 609 177 3,526 1,598 1,928 2,038 969 220 749 774 969 155 814 775 969 401 568 568 652 43 609 522 969 413 556 562 609 317 292 292 3,578 1,527 2,051 1,973 939 939 94 950 950 423 939 939 320 939 526 413 507 1,038 318 720 782 1,043 389 654 733 1,043 389 654 692 1,043 403 640 663 620 182 438 463 969 271 698 742 969 245 724 711 615 180 435 460 620 182 438 505 620 141 479 500 1,376 404 972 1,073 955 955 191 939 939 188 609 341 268 354 615 123 492 469 560 112 448 555

Cost

Accumulated depreciation

Book value

Mode of disposal/ settlement

Particulars of buyers

New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy

S. Azadar Hussain Kazmi VP M.Khalid Qureshi VP M. Omer Ata SVP Tariq Shakir VP M. Farooq Nadeem VP Amjad Saleem Butt VP Natasha Ahmed SVP Khalid Mamood VP Mr. Salman Razzaq VP Tariq Masood VP Muhammad Hadi Haidri VP Muhammad Shahid VP Ahmed Nawaz Kayani VP Farman ullah VP Syed Furqan Ali VP Amer Yousuf VP Kamran Hafeez SVP Jahangir Ahmed VP Sikander Iqbal Khan VP Ms. Ghazala Riaz Malik VP Zulfiqar Ali Jawad Ahmed Dar Ather Hussain Siddiqi

New car policy Salman A.Usmani SEVP New car policy Azhar Iqbal New car policy Shahid Iqbal Pre-Mature Retirement Shahid Agha New car policy superrenuation New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy New car policy M.Asif Azim VP Muhammad Ashfaq Saleem Pervaiz Arbab Ms. Sadia P. Saeed SEVP Khair Muhammad Munir Ahmed Saleem EVP Muhammad Khalid Qureshi Mr. Tahir Mushtaq Mir Mr. Shoaib Mumtaz Mr. Junaid Iqbal Mirza Ali Nazimi SVP Nadeem Illahi SVP Jafar Bokhari VP Asif mumtaz Butt VP Salman Zafar Siddiqui Pervez Akhtar VP Rashid Mehboob VP M.Mubashar Bashir VP

New car policy Mr.Humayun Nizami Retirement Benefit Mr.Tahir Ayub Retirement Benefit Mr.Tahir Ayub New car policy Insurance Claim Insurance Claim Farhat Mehmood Khosa VP M/s Adamjee Insurance Company Limited M/s Adamjee Insurance Company Limited

Description

Toyota Corolla Suzuki Cultus Suzuki Cultus Suzuki Cultus Suzuki Cultus Toyota Corolla Toyota Corolla Toyota Corolla Suzuki Cultus Suzuki Cultus Toyota Corolla Suzuki Cultus Suzuki Cultus Toyota Corolla Suzuki Cultus Suzuki Cultus Honda City Honda City Suzuki Cultus Toyota Corolla Lancer Toyota Corolla Lancer Toyota Corolla Suzuki Cultus Toyota Corolla Toyota Corolla Toyota Corolla Toyota Corolla Honda Civic Toyota Hilux Toyota Corolla Toyota Corolla Honda Civic Bolan Van Honda Civic Honda Civic Toyota Corolla Suzuki Cultus Honda Civic Lancer Honda Civic Honda Civic Suzuki Cultus Honda Civic Suzuki Cultus Suzuki Cultus Suzuki Cultus Suzuki Cultus Toyota Corolla Toyota Corolla

Sales proceeds/ insurance claim --------------------- (Rupees '000) --------------------969 245 724 850 615 90 525 612 615 90 525 620 615 74 541 620 604 298 306 480 939 626 313 708 954 509 445 810 969 413 556 750 607 130 477 515 620 207 413 462 969 297 672 837 620 190 430 498 620 174 446 508 979 209 770 900 560 127 433 556 612 131 481 564 1,031 247 784 705 1,031 220 811 752 615 107 508 546 969 168 801 920 1,079 144 935 800 1,005 107 898 925 1,079 58 1,021 825 1,005 80 925 983 620 165 455 485 954 547 407 800 939 576 363 776 939 563 376 800 939 576 363 800 1,043 431 612 810 2,290 1,718 572 1,350 939 563 376 765 939 576 363 794 1,238 512 726 956 427 199 228 385 1,238 429 809 1,026 1,238 495 743 1,010 1,043 362 681 942 620 174 446 500 1,237 511 726 910 1,074 143 931 880 943 679 264 680 963 642 321 770 604 274 330 471 963 552 411 700 609 357 252 435 620 182 438 555 612 131 481 625 615 90 525 609 1,074 172 902 880 969 297 672 668

Cost

Accumulated depreciation

Book value

Mode of disposal/ settlement

Particulars of buyers

Insurance Claim Insurance Claim Insurance Claim Insurance Claim Insurance Claim Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction

M/s Adamjee Insurance Company Limited M/s Adamjee Insurance Company Limited M/s Adamjee Insurance Company Limited M/s Adamjee Insurance Company Limited M/s Adamjee Insurance Company Limited Mr M.Hanif Dilbar MR. K Zulifqar Ahmad Mr.Khuram Imtiaz Mr.M Sharif Mr.Khuram Imtiaz Mr.Sohail Rehman Mr.Khuram Imtiaz Mr.Rehan Mathani Mr.Khuram Imtiaz Mian M.Tariq Iqbal Mr.M Illyas Mr.Humayun Zaheer Mr.Irfan ABID Qureshui Mr.Asad Khalid Sh Mr.M Nasir Mr.Yasir Mehmood Mr.M Sajid Mr.Jahangir Pervaiz Mr.Khuram Imtiaz Mr.Tariq Saeed Farhat A. Jaffari Mohammad Akber Mr. Saleem Mehmood Syed Afzal Mehndi Adnan Ahmed Bhatti Adnan Ahmed Bhatti Mehmood Syed yasir Ahmed Mehmood Haibullah Associates Syed yasir Ahmed Syed yasir Ahmed Waseem Mirza Mehmood Haibullah Associates Waseem Mirza Waseem Mirza Mehmood Waseem Mirza Waseem Mirza Mr. Mehmood Waseem Mirza Mr.Khuram Imtiaz Waseem Mirza Kamran Ahmad

Description

Honda Civic Suzuki Cultus Honda Civic Toyota Corolla Toyota Corolla Toyota Corolla Toyota Corolla

Sales proceeds/ insurance claim --------------------- (Rupees '000) --------------------1,225 817 408 710 560 276 284 364 1,043 334 709 900 939 576 363 763 939 563 376 723 939 551 388 679 939 538 401 739 290,357 110,949 179,408 198,340

Cost

Accumulated depreciation

Book value

Mode of disposal/ settlement

Particulars of buyers

Auction Auction Auction Auction Auction Auction Auction

Mirza Atif Shahzad Mrs. Samina Atif Mr.Ibrahim Mahir Raja Mr. Khuram Imtiaz Mr. Khuram Imtiaz Mr. Khuram Imtiaz Mr. Khuram Imtiaz

"Other Vehicles having book value of less than Rs. 250,000 or cost of less than Rs. 1,000,000" 2008 2007

30,275

16,648

13,627

23,160

576,157 215,536

354,385 166,253

221,772 49,283

258,627 62,419

Annexure - V Summarized detail of the valuation of owned properties (refer note 11.2.1) City Land Building Total --------------------- (Rupees in '000) --------------------3,489,740 89,981 48,591 5,698 4,150 15,687 21,935 3,765 23,500 21,000 10,000 14,063 241,260 1,189,400 15,000 300,836 3,075,794 16,380 396,077 43,200 41,534 12,000 18,000 20,000 51,323 13,000 24,000 3,885 50,000 11,764 57,352 67,017 2,200 43,582 4,300 23,070 3,484 10,150 8,100 15,120 7,000 667 9,380 13,750 20,500 4,800 9,562,035 2,098,418 42,407 14,049 1,735 1,051 5,397 6,190 2,674 486 9,047 305 2,874 33,860 150,936 6,531 84,738 1,386,009 1,673 81,372 14,391 7,862 4,849 3,231 8,128 7,256 7,104 8,332 1,228 4,505 7,681 3,988 7,970 21,054 800 6,085 818 3,507 3,739 6,931 8,535 5,924 1,600 915 11,711 12,945 1,837 35,061 34,818 4,172,557 5,588,158 132,388 62,640 7,433 5,201 21,084 28,125 6,439 23,986 30,047 10,305 16,937 275,120 1,340,336 21,531 385,574 4,461,803 18,053 477,449 57,591 49,396 16,849 21,231 28,128 58,579 20,104 32,332 5,113 54,505 19,445 3,988 65,322 88,071 3,000 49,667 5,118 26,577 7,223 17,081 16,635 21,044 8,600 1,582 9,380 25,461 33,445 6,637 35,061 34,818 13,734,592

Karachi Hyderabad Sukkur Moro Nausheroferoz Mirpurkhas Larkana Gawadar Mianwali Jehlum Muree Jhang Quetta Islamabad Abbottabad Rawalpindi Lahore Kasur Faisalabad Gujrat Gujranwala Wazirabad Muridke Hafizabad Sargodha Okara Sheikhupura Vehari Sialkot Sahiwal Chakwal Azad Kashmir Peshawar Tandoallahyar Muzaffarabad Shadadpur Haripur Dir Mingora Rahim Yar Khan Sadiqabad Haroonabad Chistian Khanpur Bahawalpur D.G. Khan Shujabad Overseas MCB Asset Management Company(subsidiary company) Grand total