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Highlights 2016
Innovative Financial Solutions
About Mobilink Bank
Board of Directors
Management Team
Vision, Mission & Values
Our Products
Branch Network
Five Year Journey
Empowering Businesses: The Story of Deen Muhammad
Director’s Report
CEO’s Message
Chief Digital & Financial Services Officer’s Message
Auditor’s Report
Financial Statements
Notes to Financial Statements
01
06
17
21
23
27
29
31
33
39
42
45
47
49
51
56
Contents
Active Borrowers
Avg. Outstanding Loan Size
No. of Depositors
No. of Locations
Number of Employees
No. of Branchless Banking Agents
Earnings Per Share
Return on Assets (ROA)
Return on Equity (ROE)
PAR
1.59
2.4%
20.7%
0.04%
Highlights 2016
91,747
64,677
8,121,382
51
751
69,780
page 1
Innovative Financial Solutions Drivers of Growth & Success Our innovative financial solutions include a diversified range of products and services such as Domestic Remittance, International Remittance, G2P Disbursements, Utility Bills Payment, Inter-Bank Fund Transfer (IBFT), Pre & Post-Paid Top-Ups, Real time Fee/Loan/Donation/Insurance/Passport/ Tickets Payments, Digital Account opening through bio-metric verification, Loans Disbursements, CASA/TDR accounts, Bankers Cheques and Running Finance. These services are accessible through both Branch and Branchless Banking Platforms, and can be accessed real time through Branchless Banking, Over-the-Counter, Internet Banking, Mobile Application, CCDMs/ATMs/POS/Other-ADC Channels. Our financial solutions have transformed the microfinance industry in Pakistan. In the last five years we have introduced a diversified portfolio of financial products and spearheaded the launch of a cutting-edge branchless banking service under the brand JazzCash making us a leading player in technology driven microfinance solutions in Pakistan.
page 6
page 17
With over 11 million mobile wallets, Mobilink Bank has become Pakistan’s largest digital bank in a short span of 4 years. Mobilink Microfinance Bank, formerly Waseela MF Bank, a Global Telecom - VEON Group company, started operations in April 2012 and launched branchless banking operations under the brand name ‘Jazzcash’ in partnership with Pakistan's largest telecom operator ‘Jazz’ in November 2012.
Being a hybrid model, that combines traditional microfinance with mobile / digital banking and agent based banking, the bank now operates with 51 branches, a nationwide network of 70,000 branchless banking agents and a USSD (GSM) based digital channel offering savings, micro-enterprise loans, small housing loans, remittances, collections (of utility bills and loan instalments), mobile wallets, insurance, G2P, B2B & B2P payments, the bank currently plays a leading role in the promotion of financial inclusion. Despite being a young bank, Mobilink Bank has emerged as a front
About Mobilink BankAbout Mobilink Bank
page 18
runner in the sector, having achieved financial break-even within four years of commencement of operations, one of the fastest in the industry.
Mobilink Bank & Jazz, under the brand of Jazzcash, envision to become market leaders in digital financial services. Due to rapid increase in the smartphone user base in the country, distinction between traditional and mobile financial services is rapidly diminishing. Therefore, the Bank continues to invest in technology and systems to maintain it’s lead in digitalization of financial services. Mobilink Bank’s strategy is to take banking from the confines of a limited number of brick and mortar structures to customers’ cell phones thereby removing a major barrier in expanding coverage and outreach, significantly increasing access to financial services such as savings, loans, insurance and transactional services.
• 0pened 26 new branches, reaching a total of 30• Ended the year with deposits of Rs. 644 million (573.9% increase from
2012) and 66,279 depositors• GLP closed at Rs. 178 Million• Jazz Cash agents reached a count of 26,578, 2.51 million remittance
transactions and 5.5 million Utility Bill Payments.
2013
• Opened 8 new Booths• Launched Interbank Fund Transfer (IBFT) service in November 2014.• Launched ATM card on May 02, 2014 and installed its first ATM
machine on July 07, 2014.• Closed deposits at Rs. 1.3 Billion with 311,748 depositors • GLP was closed at Rs. 500 Million • Jazz Cash agents reached to 49,586 with 15.8 million remittance
transactions 9.314 million utility bill payments.
2014
• Opened first branch on May 2, 2012• Pilot launch of branchless banking on May 31, 2012• Commercial launch of branchless banking on November 5, 2012 with
brand name Mobicash.• Opened four branches and six service centers • Ended year with Rs. 112 Million deposit with 8,655 depositors• Ended year at GLP of Rs. 6.5 Million• Branchless banking agents reached to 5,030, had 5,885 home
remittance transactions and 62,375 Utility Bill Payments.
2012
page 19
• MMBL launched Banca assurance for its customers• Closed its deposit at Rs. 3.2 Billion with 3.2 Million depositors• GLP was closed at Rs. 1.4 Billion• Jazz Cash agents reached to 58,818 with 28.4 Million remittance
transactions and 2.2 Million Utility Bill Payments.• Launched international remittance services on August 18, 2015. • Launched savings account products for mobile wallet accounts in
August 2015.
2015
• Opened 05 new branches & 8 new booths in 2016 with total number of branches reaching 35 with 16 booths.
• Launched NFC payments for mobile wallets in March 2016• Re-branded from Waseela Microfinance Bank Limited to Mobilink
Microfinance Bank Limited in May 2016.• Launched Internet Banking services In November, 2016, being the first
MFB to offer these services.• Started disbursement of loans straight to mobile wallets in November
2016.• Closed its deposit at Rs. 10.3 Billion with 8.12 Million depositors • GLP was closed at Rs. 5.9 Billion • Jazz Cash agents reached to 69,767 with 36 Million remittance
transactions and 4.5 Million Utility Bill Payments
2016
page 20
Aamir Hafeez IbrahimDirector / Chairman
A highly motivated leader with the proven ability to develop organizations and drive revenues. Mr. Ibrahim possesses vast cross-functional experience that encompasses strategic marketing & sales, stakeholder management and corporate strategy. His track record includes successful leadership roles in Pakistan as well as Thailand, UK, UAE, Switzerland and USA across the telecom and automotive industry.
Niaz BrohiDirector
Presently the Chief Legal Officer at Jazz and having previously worked with the Pakistan Telecom Authority, Mr. Brohi, has over 15 years of experience in the telecom sector specialising in regulatory and corporate affairs, litigation and management, due diligence, mergers and acquisitions, risk assessment and advising the board of directors.
Salim Nooruddin JiwaniDirector
With over 15 years of experience in policy planning, financial management, institutional assessment and transformation of microfinance institutions, Mr. Jiwani believes in poverty reduction and economic empowerment. He has previously served on the Board of Directors of the First Microfinance Bank, Kashf Microfinance Bank and Pakistan Microfinance Network.
Muhammad Usman BajwaDirector
A corporate finance professional with over 10 years of experience in treasury and financial management. Mr. Bajwa is a qualified Chartered Financial Analyst (CFA) with a proven record of managing extensive operations, large teams and various types of financing, debt and capital transactions.
page 21
Board of Directors:
Ghazanfar AzzamDirector
Ghazanfar Azzam is the President and CEO of Mobilink Microfinance Bank Limited. He has vast experience and exceptional achievements to his credit in retail, commercial, consumer, SME and micro-banking segments.In a career spanning over 30 years, Ghazanfar has worked for some of the best banks in Pakistan including HBL, Union Bank, Prime Bank & Bank Alfalah in retail, commercial, consumer, SME Banking and Training & Development.In recognition of his contributions to HR Development in banking industry, he was awarded the prestigious Hubert Humphrey Fellowship by the United States Government for the year 2000-01 under Fulbright Program. He has attended advanced seminars and management development programs at LUMS, World Bank Institute in Washington DC and Harvard Business School.
page 22
Azfar ManzoorDirector
Mr. Azfar is a seasoned professional having 22 years’ experience in the Telecommunication industry. He had done his Electrical engineering from USA & MBA from Lahore University of Management Sciences. He presently is board member of Universal Service Fund and Regional Chair of Massachusetts Institute of Technology. Currently serving as Vice President/ Head of B2B Business Unit & CEO Link.Net Telecom Ltd.
David Leslie Christopher Dobbie Director
A young professional having 14 years’ experience in Legal and corporate affairs. He is an expert in International Transactions with specialties in international cross border transactions and mergers & acquisitions. Mr. Dobbie is a graduate from University of Auckland with in Law & Accounting. He is currently working as Deputy General Counsel in Vimpel Com.
Management Team:
Ghazanfar AzzamPresident / CEO
Ghazanfar Azzam is the President and CEO of Mobilink Microfinance Bank Limited. He has vast experience and exceptional achievements to his credit in retail, commercial, consumer, SME and micro-banking segments.In a career spanning over 30 years, Ghazanfar has worked for some of the best banks in Pakistan including HBL, Union Bank, Prime Bank & Bank Alfalah in retail, commercial, consumer, SME Banking and Training & Development.In recognition of his contributions to HR Development in banking industry, he was awarded the prestigious Hubert Humphrey Fellowship by the United States Government for the year 2000-01 under Fulbright Program. He has attended advanced seminars and management development programs at LUMS, World Bank Institute in Washington DC and Harvard Business School.
Muhammad Asim AnwarChief Operating Officer (COO)
A Seasoned Microfinance Professional with more than 16 years of diversified experience across key business segments including Business Banking, Bank Operations, Branchless Banking, Administration & Procurement. While managing larger workforce across various locations in the country, Asim has been deeply involved in mobilizing the field operations and achieving bank revenue targets through quality portfolios, diversified business products and effective client management.
page 23
Ghazanfar SiddiqueGroup Head IT & Operations
Business and Technology Integration Specialist with 20 years of diversified experience in Banking, Digital Transformation and IT industries having domain exposure of Retail, Branchless Banking, Payment and Card Solutions. Worked as senior management positions in Pakistan, Malaysia and North Africa in Standard Chartered, Jaiz Bank PLC.
Shahzad Nazir KhanHead Risk Management
A Risk Management professional with diverse banking experience with International and Local Financial Institutions. Having extensive exposure to Business Banking as well as Risk Management in segments ranging from Corporate, SMEs to Microfinance, Shahzad has an effective ability to understand, assess and respond to the ever changing business dynamics. Always promoting a team based and constant learning culture at all levels enables Shahzad to keenly drive the evolution of Microfinance to Digital Banking while effectively safeguarding the interest of all stakeholders. Being a Change Management leader, Shahzad believes that effective communication and repeated transmission of MMBL’s core values not only strengthens our organization but also our people at an individual level.
page 24
Management Team:
page 25
Tayseer AliChief Financial Officer (CFO)
Tayseer is a Chartered Accountant from ICAEW and a Fellow Chartered Certified Accountant. He joined the Bank in January 2017 and was previously working for Pak China Investment Co. as CFO. Tayseer has been associated with the financial sector since 2011.
Syed Sajjad QayyumGroup Head Compliance Affairs
and Service Quality
S. Sajjad Q. Ashraf is an experienced banker having worked in different Instutitions in various capacities, including Leadership roles. Sajjad’ s experience covers key banking functions such as Credit, Operations, Business Banking, Compliance, risk management, Strategic Planning/Business Initiatives, and teams building. He is MBA, LLB(Pb.), D.A.I.B.P.
Naj-Mus-Sahar SabzwariHead Internal Audit
Sabzwari has about 20 years of extensive experience in the field of audit encompassing both commercial and microfinance banking environment. He is a Fellow member of Institute of Chartered Accountants of Pakistan (ICAP) with added qualifications of CISA, CISM and CIA. He is reporting to the Board Audit Committee.
Samiha Ali ZahidHead HR and Trainings
Samiha Ali Zahid brings with her 15 years of cross functional experience in OD, Staffing & HRM resulting in creating cohesive and high performing teams that contribute towards business goals. She holds a Masters’ Degree in Public Administration and is a Certified Trainer. She has been recently Certified by Korn Ferry for their product suite "Korn Ferry Leadership Architect".
Samiha has proven experience of collaborating with other Business functions to initiate programs aimed at developing and sustaining a positive employer image crucial to attract and retain talent. Her expertise include development of policy guidelines aiming to bring internal and external equity for employees. For the last 6 years she has addressed and implemented strategic plans for managing people experience, compensation structure, retention and succession plans.
page 26
Mobilink Microfinance Bank aims to provide financial solutions to the economically underprivileged for their economic freedom by using innovative ADC’s and promoting micro businesses through an ethical and passionate team, which strives to deliver beyond expectations.
Missi n
Visi nMobilink Microfinance Bank aims to alleviate poverty and promote financial inclusion by providing innovative solutions.
page 27
Solution forFinancial Empowerment
Salary Loan LSO loans Ready Cash
Micro Enterprise Loan Karobar Loan Khushhal Kisan Loan Fori Cash Loan
Livestock Loan Agri Passbook Loan Mobi House Tractor Loan
page 29
Our Saving Options
Sahulat CurrentAccount
Bachat Account Mahana MunafaTerm Deposit
Mustaqbil TermDeposit
Assan savingAccount
Assan CurrentAccount
Investment in Prosperity
Banca AssuranceWaseela e Zindagi
Banca TakafulMobi Takaful
page 30
Branches51
BusinessAreas
06
10Central 1
09Central 2
09Central 3
07North
07South
09Central 4
Multan & LayyahFaisalabad & Sargooda
Pannu AqilPeshawar
Rahim Yar KhanSahiwal
Business Areas
Branches Network
page 31
Peshawar
Islamabad
Lahore
Karachi
1 Abbotabad Branch North 2 Islamabad Branch North 3 Peshawar Branch North 4 Haripur Branch North 5 Rawalpindi Branch North 6 Mardan Branch North 7 Swabi Branch North 8 Jhang Branch Central-1 9 Toba Tek Branch Central-1 10 Faisalabad Branch Central-1 11 Gojra Booth Central-1 12 Khushab Branch Central-1 13 Lahore Branch Central-1 14 Sialkot Branch Central-1 15 Sargodha Branch Central-1 16 Bhalwal Booth Central-1 17 Mandi Bahauddin Branch Central-1 18 Sahiwal Branch Central-2 19 Pakpattan Branch Central-2 20 Arif Wala Booth Central-2 21 Chishtian Branch Central-2 22 Hasil Pur Booth Central-2 23 Haroon Abad Booth Central-2 24 Fortabbas Branch Central-2 25 Burewala Branch Central-2 26 Mian Channu Branch Central-2
27 Bhakkar Branch Central-3 28 Layyah Branch Central-3 29 Multan Branch Central-3 30 Daryah Khan Booth Central-3 31 Chowk Azam Booth Central-3 32 Shujabad Booth Central-3 33 Kot Addu Branch Central-3 34 Mankera Booth Central-3 35 Karor Lal Essan Booth Central-3 36 Lodhran Branch Central-4 37 Kehror Pecca Booth Central-4 38 Duniapur Booth Central-4 39 Jalalpur Booth Central-4 40 Liaquatpur Branch Central-4 41 Ahmedpur Booth Central-4 42 Rahimyarkhan Branch Central-4 43 Khanpur Booth Central-4 44 Sadiqabad Booth Central-4 45 Pannu Akil Branch South-1 46 Dherki Branch South-1 47 Ranipur Branch South-1 48 Hala Branch South-1 49 Hyderabad Branch South-1 50 Karachi-PC Branch South-2 51 Karachi-NTO Branch South-2
AreaName
S.No. Business UnitName
Branch /Booth
AreaName
S.No. Business UnitName
Branch /Booth
page 32
Five Year Journey
649
Investm
ents
Gro
ss A
dvances
Deposits
Tota
l A
ssets
Share
hold
ers
Equity
112,1
51
1,1
80,8
97
915,4
11
1,0
46,6
81
2012
409,5
17
178,3
28
Investm
ents
Gro
ss A
dvances
Deposits
Tota
l A
ssets
Share
hold
ers
Equity
645,3
69
1,9
13,3
98
1,1
44,0
45
2013
125,2
72
Investm
ents
Gro
ss A
dvances
Deposits
Share
hold
ers
Equity
1,3
50,3
15
3,1
97,3
11
4,8
90,5
57
1,0
00,3
36
2015
Investm
ents G
ross A
dvances
Deposits Tota
l A
ssets
Share
hold
ers
Equity
2016
1,4
95,0
53
5,9
33,9
62
10,3
06,3
62
14,2
33,8
57
1,2
30,4
93
Financial Position (PKR in 000's)
(34,640)
Revenue Profit/(Loss) Before Tax
Key
Profit/(Loss) After Tax
2012 2013
(35,194)
110,931
(212,779)
(215,960)
157,886
2014
(148,904)
(107,054)
457,313
2015
(193,668)
(37,277)
884,453
2016
334,835
230,758
1,948,586
Financial Performance (PKR in 000's)
326,7
80
Investm
ents
Gro
ss A
dvances
Deposits T
ota
l A
ssets
Tota
l A
ssets
Share
hold
ers
Equity
2,5
40,8
47
1,2
87,9
19
500,4
02
1,0
36,3
30
2014
page 33
Return on Assets 2.4% -1.0% -4.8% -14.0% -3.1%
Ratios2016 2015 2014 2013 2012
Return on Equity 20.7% -3.7% -9.8% -19.7% -3.3%
Earnings/(Loss) Per Share (PKR) 1.59 (0.26) (0.75) (1.90) (0.31)
PAR 0.04% 0.0% 0.0% 0.0% 0.0%
Operating Self Sufficiency 120.7% 82.0% 75.4% 42.6% 76.2%
page 34
Business Units
Key Stats
Branches/Booths
2012
20132014
2015
2016
BranchLeSs banking agents
2012
20132014
2015
2016
Employees
2012
20132014
2015
201610
3641
41
51 -
26,550
49,573
58,568
69,780
346
130
475
620
751
Active Borrowers
2012
20132014
2015
201629
11,402
4,407 27,225
91,747
Depositors
2012
20132014
2015
20166,850
66,693
311,920
3,185,600
8,121,382
page 38
The Story of Deen Muhammad
Deen Muhammad, a 49 year old resident of Hala, Sindh, owns a lumber and coal business. Deen has a large family, with 10 dependents, and prior to having his own business he worked as an unskilled laborer and was barely making ends meet. Acting on the suggestion of a close friend, he set out to establish a business to create other income streams, particularly a small lumber business. He began from selling small pieces of wood from trees in the local market but struggled to generate any significant income.
In 2013, during the initial days of the establishment of Mobilink Bank (at the time known as Waseela Microfinance Bank), Deen came into contact with a relationship officer from the local bank branch and applied for a micro-loan in order to invest in his business. He added upon his existing setup with new wood and coal products and expanded to the Bhit-Shah Bus Terminal, a busy area where wood and coal were the primary sources of power generation. Through
The Local Lumber Business Owner
Empowering BusinessesTransforming Lives
page 39
additional income he also purchased agricultural land and live-stock to generate further income and supplement his household’s dairy and food consumption.
In the future, Deen plans to further expand the distribution of his business and employ the services of his elder son, who already supports him in various ways. The family plans to build upon the success of the business and multiply the income potential through expansion. Deen’s wood and coal business has also helped his community. Previously local households had to travel far to obtain these commodities for everyday use.
Citi-PPAF also acknowledges Deen Muhammad’s efforts and contributions to his community. His story brings great pride and joy to us at Mobilink Microfinance Bank and also won Deen, his relationship officer and the bank awards at the 10th Citi-PPAF Micro Entrepreneurship Awards held at Islamabad.
page 40
For the year ended December 31, 2016
Financial Highlights:
Operational achievements/milestones:
Controls Framework:
Directors’ Report
On behalf of the Board of Directors, I am pleased to present the audited financial statements and Auditors’ Report thereon, for the year ended December 31, 2016.
Performance Highlights:
The bank established itself as a key player in the digital banking and microfinance industry. With a network of 35 branches, 16 booths/service centers and 69,780 branchless banking locations, the bank achieved a growth of 339% in the loan book during the year and 222% growth in deposits from the previous year. Both core banking & branchless banking revenue has increased significantly resulting in Rs. 1,949 million in total revenue in 2016, compared to Rs. 884 million in the previous year. The bank posted a profit after tax of Rupees 231 million during the year.
The bank’s performance against its business plan is on track since its inception. With a mix of collateralized and uncollateralized products for rural & urban markets, the bank managed to secure high quality loan portfolio with only 0.04% of the total portfolio categorized as non-performing, demonstrating the bank’s effective credit policy and internal controls.
During the year 2016, the bank has successfully made a number of technological developments, including internet banking and mobile banking applications, and capitalized on previously established alternate delivery channels to effectively expand on delivery of products and services to secure significant growth in its customer base. The bank established new integrations and partnerships with service providers to enable international remittance & fund transfers and also integrated the payment gateway with 1-Link to enable payments at ATMs. To ensure timely efficient & effective controls new features were implemented in the branchless banking platform to adhere to recent regulatory control requirements.
The Bank’s management, being responsible to establish and maintain an adequate and effective system of internal controls and procedures, evaluated the effectiveness of the bank’s internal control system and reviews significant policies and procedures. To make these functions more effective & independent Board Sub - Committees have been set-up to provide the necessary oversight.
2016 2015
---- Amount in PKR ‘000’ ---- Net Mark-up/Interest Income 985,740 298,597
Provision against NPLs (67,611) (5,170)
Net Mark-up/Interest Income after provisions 918,129 293,427 Non-Mark-up / Non-interest Income 707,516 531,145
Total income 1,625,645 824,572
Administrative Expenses (1,290,810) (1,018,240)
Taxation (104,077) 156,390
Profit/(Loss) after tax 230,758 (37,277)
page 42
page 43
Statement of Compliance
Pattern of Shareholding:
The pattern of shareholding of the bank as at December 31, 2016 as required under section 236 of the Companies Ordinance, 1984 is as follows:
Credit Rating
The Pakistan Credit Rating Agency Limited (PCRA) revised the bank’s credit rating for the year 2016 in August 2016 as follows:
The board is pleased to confirm that:
1. The financial statements prepared by the management of the bank present a true and fair view of the state of its
affairs, operational results, cash flows and changes in equity.2. Proper books of accounts of the company have been maintained.3. Appropriate accounting policies have been consistently applied in preparation of financial statements.4. The bank has followed all accounting standards as applicable to Microfinance Banks in Pakistan. 5. As a continuous process, efforts are made to effectively implement the internal control systems. 6. There are no doubts about the bank’s ability to continue as a going concern.7. The board has constituted Audit and Risk Management Committees comprising of non-executive members, which
have defined terms of reference.
No. of shareholders
Held by
From To Total Shares Held
5 1 100 5
1 Global Telecom Holdings S.A.E (Formerly Orascom Telecom Holding S.A.E) Egypt
101 145,175,355 145,175,355
Capital Adequacy
During the year the bank remained compliant with the statutory capital adequacy requirement of keeping the ratio to at least 15% capital of its risk-weighted assets.
New – Aug’16 Previous – Mar’16
Long term A A-
Short term A1 A2
Outlook Stable Stable
page 44
Acknowledgements:
Aamir Hafeez IbrahimChairman
On behalf of the Board of Directors, I would like to appreciate the hard work put in by the employees of the bank in taking various initiatives during the year. I, on behalf of the Board, express gratitude to the State Bank of Pakistan for its continued support and guidance. Taking this opportunity, I would also thank, on behalf of the Board & the management, the customers for entrusting confidence in us and assure them that we remain committed to maintaining high service standards and a strong corporate governance and compliance in all our endeavors.
For and on behalf of the Board
became accessible to all mobile subscribers in Pakistan.
Resultantly the Bank achieved aggressive growth in all key indicators. The total asset base stood at PKR 14.2 billion, a growth of 191% from the previous year’s base of PKR 4.89 billion. The bank’s loan and deposit portfolios grew exponentially, closing the year at PKR 5.9 billion ( 339%) and PKR 10.3 billion ( 222%) respectively, with a pre-tax profit of PKR 334.8 million, a swing of 273% from last year’s loss of 193.6 million. The bank’s share of the country’s microfinance banking portfolio grew to 6.6%, from 2.4%, and our credit rating was improved to A/A-1 by PACRA.
Our strategy for the year, deemed ‘Quantum Leap 2016’, built upon our strength of being a digital and versatile institution, yielded outstanding results and I am proud of all we have managed to achieve. We now serve over 91,000 active loan customers, 137,000+ branch banking customers and close to 8 million mobile wallet accounts. During the year Jazzcash gained majority market share in active mobile wallets making it the leading mobile financial service in the country.
We progress into the new year seeking to face greater challenges, aiming higher and geared up to accomplish more. Leveraging on our strengths we will optimize our systems and operating structure towards enhanced efficiency and control to continue to grow effectively while maintaining standards of service delivery. The market we serve offers immense opportunity for growth and our edge of being digital and innovative will be pivotal to expanding on the services and value we offer to the country’s microfinance and digital financial ecosystem.
On behalf of the Board of Directors and the management, I would like to congratulate the team at Mobilink Microfinance Bank Limited (MMBL) on the close of the bank’s most impressive and successful year. In 2016 we took on the challenge to grow and expand on our business, products and services and in doing so we achieved tremendous goals and greatly enhanced our level of service delivery.
As the microfinance industry continues to grow on the premise of financial inclusion, it remains in need of disruptive intervention. The market stands at PKR 137 billion in outstanding micro-loans, 65% catered to by microfinance banks, with a total banked population of less than 18%. The opportunity remains quite vast with demand continuing to increase. Mobile financial services remain at the forefront of inclusion efforts as local and international influence guides efforts to further strengthen delivery channels and penetration of digital services.
In an evolving market, we felt it necessary to reposition ourselves in the arena of digital financial services. This included rebranding ourselves, to Mobilink Microfinance Bank, to better capitalize on the brand strength of our sister company. With our new image we set new goals for the organization and it is my pleasure to acknowledge that the team collectively strived and worked tirelessly to successfully achieve them.
We launched our state of the art internet banking services and mobile applications, expanded on our loan and deposit products, added 13 addition locations to our branch network and our branchless banking service, rebranded to Jazzcash, launched innovative insurance and remittance products, an online payment gateway and the Jazzcash account
CEO’s MESSAGEGhazanfar Azzam
page 45
In line with State Bank’s National Financial Inclusion Strategy, our focus is to take banking services to the masses. Our short term goal is to bring people in the financial net and offer them basic services like domestic transfers, bill payments, top ups and disbursements, and in the long run upgrade these customers to more sophisticated products like micro loans, online payments and debit cards. I would also like to thank State bank for all their guidance and support.
The world is changing at a very fast pace, but this is what makes our jobs and lives more exciting. We saw opportunity in the change; we re-thought and re-shaped our business to become more agile and innovative. Our ambition is to become a digital organization and we want to reshape the digital landscape in Pakistan. We need to continuously work on adapting ways to make things easier for our stakeholders both internally and externally. I would like to wish the best of luck to the Bank’s team for the years to come.
First of all, I would like to congratulate Mobilink Microfinance Bank on the completion of 5 successful years. It has been a phenomenal journey so far. We have secured a leading position in the Mobile Financial services category with more than 2 Million monthly active mobile accounts. On the traditional banking front we made great progress in the last five years. 2016 was a special year. The bank saw over 300% growth in its Gross Loan Portfolio and over 200% in Deposits. We closed the year with Rs.5.93 billion in receivables and Rs.10.3 billion in deposits. This was made possible by the hardwork, dedication and support extended by the bank, not to mention effectively managing the relationship with the State Bank. I deeply value, appreciate and acknowledge the commitment of Mobilink Bank’s employees. It is your passion to do things differently, and your promise and determination to act with integrity and transparency in everything you do, that has made it possible for us to live upto our values, and deliver on the promise made to our stakeholders.
Chief Digital & Financial Services OfficerAniqa Afzal Sandhu
page 47
For the year ended December 31, 2016Auditor’s Report to the Members
We have audited the annexed balance sheet of Mobilink Microfinance Bank Limited – formerly Waseela Microsoft Bank Limited, (the Bank) as at December 31, 2016 and the related profit and loss account, statement of comprehensive income, cash flow statement and statement of changes in equity together with the notes forming part thereof, for the year then ended and we state that we have obtained all the information and explanations, which to the best of our knowledge and belief, were necessary for the purpose of our audit.
It is the responsibility of the Bank’s management to establish and maintain a system of internal control, and prepare and present the above said statements in conformity with the approved accounting standards and the requirements of the Companies Ordinance, 1984, Microfinance Institutions Ordinance, 2001, and the directives issued by the State Bank of Pakistan. Our responsibility is to express an opinion on these statements based on our audit.
We conduct our audit in accordance with the audit standards as applicable in Pakistan. These standards require to that we plan and perform the audit to obtain reasonable assurance about whether the above said statements are free of any material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the above said statements. An audit also includes assessing the accounting policies and significant estimates made by the management, as well as, evaluating the overall presentation of the above said statements. We believe that our audit provides a reasonable basis for our opinion and, after due verification, we report that:
a) in our opinion, proper books of accounts have been kept by the Bank as required by the Companies Ordinance, 1984;
b) in our opinion –
i) the balance sheet, profit and loss account and statement of comprehensive income together with the notes thereon have been drawn up in conformity with the Companies Ordinance 1984, the Microfinance Institution Ordinance, 2001 and the directives issued by the State Bank of Pakistan, and are in agreement with the books of accounts and are further in accordance with accounting policies consistently applied;
ii) the expenditure incurred during the year was for the purpose of Bank’s business; and
iii) the business conducted, investments made and the expenditure during the year were in accordance with the objects of the Bank;
page 49
page 50
Chartered Accountants
Islamabad: March 24, 2017
Engagement Partner: JehanZeb Amin
c) in our opinion and to the best of our information and according to the explanations given to us, the balance sheet profit and loss account, statement of comprehensive income, cash flow statement and statement of changes in equity together with the notes forming part thereof conform with approved accounting standards as applicable in Pakistan, and give the information required by the Companies Ordinance, 1984, the Microfinance Institutions Ordinance, 2001 and the directives issued by the State Bank of Pakistan, in the manner so required and respectively give a true and fair view of the state of Bank’s affairs as at December 31, 2016 and of the profit, its cash flows and changes in equity for the year then ended; and
d) in our opinion, Zakat deductible at source under the Zakat and Usher Ordinance, 1980 (xviii 0f 1980), was deducted by the Bank and deposited in the Central Zakat Fund established under section 7 of that Ordinance.
page 51
MOBILINK MICROFINANCE BANK LIMITED(Formerly Waseela Microfinance Bank Limited)
BALANCE SHEET AS AT DECEMBER 31, 2016
2016 2015ASSETS Note (Rupees) (Rupees)
Cash and Balances with SBP and NBP 6 747,930,012 266,578,027
Balances with other Banks/NBFIs/MFBs 7 4,742,891,348 2,402,370,277
Lending to financial Institutions - -
Investments – net of provisions 8 1,495,053,230 125,271,966
Advances – net of provisions 9 5,858,824,209 1,342,557,145
Operating fixed assets 10 388,447,521 289,234,838
Other assets 11 853,361,423 270,088,401
Deferred tax asset 12 147,349,687 194,455,975
Total Assets 14,233,857,430 4,890,556,629
LIABILITIES
Deposits and other accounts 13 10,306,362,467 3,197,311,437
Borrowings - -
Subordinated debts - -
Other liabilities 14 2,697,001,907 692,909,346
Deferred tax liabilities - -
Total Liabilities 13,003,364,374 3,890,220,783
Net assets 1,230,493,056 1,000,335,846
REPRESENTED BY:
Share Capital 15 1,451,753,600 1,451,753,600
Statutory reserves 5.8 46,151,566 -
Depositor's protection fund 5.8 11,537,892 -
Accumulated losses (278,950,002) (452,018,374)
1,230,493,056 999,735,226
Surplus on revaluation of assets 16 - 600,620
Deferred grants - - Total Capital 1,230,493,056 1,000,335,846
MEMORANDUM / OFF-BALANCE SHEET ITEMS 17
The annexed notes from 1 to 35 form an integral part of these financial statements.
page 52
MOBILINK MICROFINANCE BANK LIMITED(Formerly Waseela Microfinance Bank Limited)
PROFIT AND LOSS ACCOUNTFOR THE YEAR ENDED DECEMBER 31, 2016
2016 2015Note (Rupees) (Rupees)
Mark-up/Return/Interest earned 18 1,241,070,085 353,307,829 Mark-up/Return/Interest expensed 19 (255,330,339) (54,710,577)
Net Mark-up/ Interest Income 985,739,746 298,597,252
Provision against non-performing loans and advances (67,610,733) (5,170,193) Provision for diminution in the value of investments - - Bad debts written off directly - -
(67,610,733) (5,170,193) Net Mark-up/ Interest Income after provisions 918,129,013 293,427,059
NON MARK-UP/ NON INTEREST INCOMEFee, Commission and Brokerage Income - net 20 703,855,723 531,144,891 Dividend Income - - Other Income 21 3,660,355 - Total non-markup/non interest Income 707,516,078 531,144,891
1,625,645,091 824,571,950 NON MARK-UP/ NON INTEREST EXPENSESAdministrative expenses 22 (1,287,181,352) (1,018,141,704) Other provisions/write offs - - Other charges 23 (3,629,020) (98,000) Total non-markup/non interest expenses (1,290,810,372) (1,018,239,704)
334,834,719 (193,667,754) Extra ordinary/unusual items - -
PROFIT / (LOSS) BEFORE TAXATION 334,834,719 (193,667,754)
Taxation - Current 24 (56,921,902) - Taxation - Prior years 24 - - Taxation - Deferred 24 (47,154,987) 156,390,336
(104,076,889) 156,390,336
PROFIT / (LOSS) AFTER TAXATION 230,757,830 (37,277,418)
Accumulated loss brought forward (452,018,374) (414,740,956) Loss available for appropriation (221,260,544) (452,018,374)
APPROPRIATIONS:Transfer To:
Statutory reserve (46,151,566) - Capital reserve - - Contribution to depositors protection fund (11,537,892) - Revenue reserve - - Dividend - - Others - -
(57,689,458) -
Accumulated loss carried forward (278,950,002) (452,018,374)
Profit / (Loss) per share (Rupee) 28 1.59 (0.26)
The annexed notes from 1 to 35 form an integral part of these financial statements.
MOBILINK MICROFINANCE BANK LIMITED(Formerly Waseela Microfinance Bank Limited)
STATEMENT OF COMPREHENSIVE INCOMEFOR THE YEAR ENDED DECEMBER 31, 2016
2016 2015Note (Rupees) (Rupees)
Profit /(Loss) after taxation 230,757,830 (37,277,418) Other comprehensive income/ (loss) 48,699 -
Comprehensive income/ (loss) transferred to equity 230,806,529 (37,277,418)
Components of comprehensive income not reflected in equity
Surplus / (deficit) on revaluation of investments 8.2 - 1,331,608
Related tax impact - (48,699)
- 1,282,909
230,806,529 (35,994,509)
The annexed notes from 1 to 35 form an integral part of these financial statements.
page 53
MOBILINK MICROFINANCE BANK LIMITED(Formerly Waseela Microfinance Bank Limited)
CASH FLOW STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIESProfit / (Loss) before taxationLess: Dividend income
Adjustments for non-cash charges
DepreciationAmortizationProvision for gratuityProvision against non-performing advancesProvision for diminution in the value of investments/ other assets(Gain) /loss on sale of fixed assets- netAssets transferred to related party
(Increase)/ decrease in operating assets Lending to financial institutionsAdvancesOther assets (excluding advance taxation)
Increase/ (decrease) in operating liabilities Bills payableBorrowings from financial institutionsDepositsOther liabilities (excluding current taxation)
Gratuity paidPayments against provisions held against off-balance sheet obligationsIncome tax paid
Net cash inflow from operating activitiesCASH FLOWS FROM INVESTING ACTIVITIES
Net investment in available-for-sale securitiesNet investment in held-to-maturity securitiesDividend incomeInvestments in operating fixed assetsSale proceeds of property and equipment disposed–off
Net cash (outflow) / inflow from investing activitiesCASH FLOWS FROM FINANCING ACTIVITIES
Receipts/ payments of Sub-ordinated loanReceipts/ payments of lease obligationsIssue of share capital
Dividend paidNet cash flow from financing activitiesIncrease / (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the yearCash and cash equivalents at end of the year
The annexed notes from 1 to 35 form an integral part of these financial statements.
2016 2015Note (Rupees) (Rupees)
334,834,719 (193,667,754) - -
334,834,719 (193,667,754)
88,332,296 65,418,020 32,897,932 17,311,184
5,024,139 4,730,073 67,610,733 5,170,193
- - (2,462,889) 87,247
- 12,777
191,402,211 92,729,494
526,236,930 (100,938,260)
- - (4,583,877,797) (849,914,872)
(594,577,185) (77,949,066)
(5,178,454,982) (927,863,938)
28,551,824 33,755,730 - -
7,109,051,030 1,909,392,697 1,972,053,060 444,545,173
9,109,655,914 2,387,693,600
4,457,437,862 1,358,891,402 (1,536,462) (2,150,381)
- - (45,617,739) (15,812,984)
4,410,283,661 1,340,928,037
(1,370,430,583) 202,839,400 - - - -
(221,888,203) (152,646,719) 3,908,181 1,544,000
(1,588,410,605) 51,736,681
- - - - - -
- - - -
2,821,873,056 1,392,664,718
2,668,948,304 1,276,283,586
30 5,490,821,360 2,668,948,304
page 54
- - - - - - - -
MO
BILI
NK
MIC
ROFI
NA
NCE
BA
NK
LIM
ITED
(Fo
rmer
ly W
asee
la M
icro
fina
nce
Bank
Lim
ited
)
STA
TEM
ENT
OF
CHA
NG
ES IN
EQ
UIT
Y FO
R TH
E YE
AR
END
ED D
ECEM
BER
31,
20
16
Sha
re C
apita
l C
apita
l Re
serv
e S
tatu
tory
Res
erve
R
even
ue
Rese
rve
Dep
osito
rs
Prot
ectio
n Fu
nd
Adv
ance
aga
inst
is
sue
of sh
ares
A
ccum
ulat
ed lo
sses
T
otal
(Rup
ees)
(Rup
ees)
(Rup
ees)
(Rup
ees)
(Rup
ees)
(Rup
ees)
(Rup
ees)
(Rup
ees)
Bala
nce
at Ja
nuar
y 01
, 201
51,
451,
753,
600
-
-
-
-
-
(414
,740
,956
)
1,03
7,01
2,64
4
Loss
for t
he y
ear
Oth
er c
ompr
ehen
sive
inco
me/
(los
s)-
-
-
-
-
-
(37,
277,
418)
(37,
277,
418)
Tran
sfer
s to
Sta
tuto
ry re
serv
es-
-
-
-
-
-
-
Oth
er a
ppro
pria
tions
-
-
-
-
-
-
-
Issu
e of
sha
re c
apita
l-
-
-
-
-
-
-
Bala
nce
at D
ecem
ber 3
1, 2
015
1,45
1,75
3,60
0
-
-
-
-
-
(4
52,0
18,3
74)
99
9,73
5,22
6
Profi
t for
the
year
-
-
-
-
-
-
23
0,75
7,83
0
230,
757,
830
Oth
er c
ompr
ehen
sive
inco
me/
(los
s)-
-
-
-
-
-
-
Tran
sfer
s to
Sta
tuto
ry re
serv
es-
-
46
,151
,566
-
-
-
(46,
151,
566)
Tran
sfer
to D
epos
itors
pro
tect
ion
fund
-
-
-
-
11,5
37,8
92
-
(11,
537,
892)
Oth
er a
ppro
pria
tions
-
-
-
-
-
-
-
Issu
e of
sha
re c
apita
l-
-
-
-
-
-
-
Ba
lanc
e at
Dec
embe
r 31,
201
61,
451,
753,
600
-
46
,151
,566
-
11
,537
,892
-
(2
78,9
50,0
02)
1,
230,
493,
056
The
anne
xed
note
s fr
om 1
to 3
5 fo
rm a
n in
tegr
al p
art o
f the
se fi
nanc
ial s
tate
men
ts.
page 55
MOBILINK MICROFINANCE BANK LIMITED(Formerly Waseela Microfinance Bank Limited)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
1 STATUS AND NATURE OF BUSINESS
2 BASIS OF PRESENTATION
3 STATEMENT OF COMPLIANCE
These financial statements have been presented in accordance with the Banking Supervision Department (BSD) Circular No.11 dated December 30, 2003 issued by the State Bank of Pakistan.
These financial statements have been prepared in accordance with the approved accounting standards as applicable inPakistan. Approved accounting standards comprise of International Financial Reporting Standards (IFRSs) issued by theInternational Accounting Standards Board (IASB) as are notified under the Companies Ordinance, 1984, the requirements ofthe Companies Ordinance, 1984, the Microfinance Institutions Ordinance, 2001, and the regulations/ directives issued by theSECP and the SBP. Wherever the requirements of the Companies Ordinance, 1984, the Microfinance Institutions Ordinance,2001, or regulations/ directives issued by the SECP and SBP differ with the requirements of IFRSs, the requirements of theCompanies Ordinance, 1984, the Microfinance Institutions Ordinance, 2001, or the requirements of the said regulations/directives shall prevail.
The SBP vide BSD Circular No. 10, dated August 26, 2002 has deferred the applicability of International Accounting Standard(IAS) 39, "Financial Instruments: Recognition and Measurement" and IAS 40, "Investment Property" till further instructions.Accordingly, the requirements of these standards have not been considered in the preparation of these financialstatements. However, investments have been measured in accordance with the Prudential Regulations (the Regulations) ofthe SBP and presented in accordance with the requirements of SBP BSD Circular No. 11 dated December 30, 2003. Further,the SECP vide its S.R.O No. 411 (I)/ 2008 dated April 28, 2008 has deferred the applicability of International FinancialReporting Standard (IFRS) 7 "Financial Instruments: Disclosures", which is applicable for annual periods beginning on orafter July 01, 2009, till further orders.
Mobilink Microfinance Bank Limited formerly known as Waseela Microfinance Bank Limited (the Bank) was incorporated inPakistan on November 29, 2010 as a public limited company under the Companies Ordinance, 1984. The Bank obtainedlicense for Microfinance from the State Bank of Pakistan (SBP) on September 12, 2011 to operate on a nationwide basis andreceived the certificate of commencement of business from Securities and Exchange Commission of Pakistan (SECP) onFebruary 13, 2012 whereas certificate of commencement of business from SBP was received on April 20, 2012. The Bank has51 business locations / touch points comprising of 35 branches and 16 booths / service centres (2015: 41 business locations/ touch points comprising of 30 branches and 11 booths/ service centres) in operation. The Bank is a subsidiary of GlobalTelecom Holding S.A.E. (the holding company) which owns 99.99% shareholding in the Bank. The Bank's registered andprincipal office is situated at Plot No. 3-A/2, F-8 Markaz, Islamabad, Pakistan. The Bank's principal business is to providemicrofinance banking and related services to the poor and under served segment of the society under the MicrofinanceInstitution Ordinance, 2001. The Bank is also offering Branchless Banking Services through agency agreement with PakistanMobile Communications Limited (PMCL), a related party, under the Branchless Banking license from the SBP.
Further, pursuant to the special resolution passed in the Extraordinary General Meeting of the shareholders held on 2016and approval of SBP and the SECP, the name of the Bank was changed from "Waseela Microfinance Bank Limited" to"Mobilink Microfinance Bank Limited" with effect from April 29, 2016.
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page 57
4 BASIS OF MEASURMENT
4.1 Functional and presentation currency
4.2 Significant accounting estimates
a) Impairment of investments
b) Advances
c) Taxation
The Bank takes into account the current income tax law and decisions taken by the taxation authorities. Those amounts areshown as contingent liabilities wherein, the Bank's views differ from the views taken by the taxation authorities at theassessment stage and where the Bank considers that its view on items of material nature is in accordance with law.
These financial statements have been prepared under the historical cost basis except "available for sale" investments whichare measured at fair value.
These financial statements are presented in Pakistan Rupee (PKR), which is the Bank’s functional currency. All financialinformation presented in PKR has been rounded to the nearest of PKR, unless otherwise stated.
The preparation of financial statements in conformity with approved accounting standards, as applicable in Pakistan,requires management to make judgments/ estimates and associated assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. These judgments/ estimates and associated assumptionsare based on historical experience and various other factors that are believed to be reasonable under the circumstances,the result of which form the basis of making the estimates about carrying value of assets and liabilities that are not readilyapparent from other sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates arerecognized in the period in which the estimates are revised if the revision affects only that period, or in the period of therevision and future periods if the revision affects both current and future periods. Information about significant areas ofestimation, uncertainty and critical judgments in applying accounting policies that have significant effect on the amountsrecognized in the financial statements relates to valuation and impairment of investments, advances, determination ofuseful lives of depreciable assets and intangible assets, provision for income taxes and other provisions which arediscussed in following paragraphs:
Impairment in the value of investments is made after considering objective evidence of impairment. Provision fordiminution in the value of investments is made as per the Regulations issued by SBP.
The Bank reviews its micro credit loan portfolio to assess amount of non-performing advances and provision requiredthere against on regular basis. While assessing this requirement, the Regulations of SBP are taken into consideration.
page 58
d) Operating fixed assets/ intangible assets
e) Provisions and contingencies
f) Impairment of financial assets
g) Other provisions
5 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
5.1 Cash and cash equivalents
5.2 Investment
a) Held for trading
Estimates of residual values and useful lives of operating fixed assets and intangible assets are reassessed annually andany change in estimate is taken into account in the determination of depreciation/ amortization charge and impairmentloss. Changes in estimates are accounted for over the estimated remaining useful life of the assets.
The Bank reviews the status of all the legal cases on a regular basis. Based on the expected outcome and consideration ofopinion of its legal advisor, appropriate provision/ disclosure is made.
A financial asset is considered to be impaired if objective evidence indicates that one or more events would have anegative effect on the estimated future cash flows of that asset.
An impairment loss in respect of a financial asset measured at amortized cost is calculated as the difference between itscarrying amount, and the present value of the estimated future cash flows discounted at the original interest rate.
Individually significant financial assets are tested for impairment on an individual basis. The remaining financial assets areassessed collectively in groups that share similar credit risk characteristics. All impairment losses are recognized in profitand loss account.
Estimates of the amount of provisions recognized are based on current legal and constructive requirements. As actualoutflows can differ from estimates due to changes in laws, regulations, public expectations, prices and conditions, and cantake many years in the future, the carrying amounts of provisions are regularly reviewed and adjusted to take account ofsuch changes.
Cash and cash equivalents comprise cash in hand, balance with SBP/ National Bank of Pakistan (NBP) and other banks/ Non-Banking Financial Institutions (NBFIs)/ Microfinance Banks (MFBs).
All purchases and sale of investments are recognized using settlement date accounting. Settlement date is the date onwhich investments are delivered to or by the Bank. All investments are derecognized when the right to receive economicbenefits from the investments has expired or has been transferred or the Bank has transferred substantially all the risksand rewards of ownership.
Investments of the Bank are classified into the following categories:
These represent securities acquired with the intention to trade by taking advantage of short-term market / interest ratemovements. These securities are disposed off within 90 days from the date of their acquisition. These are marked to marketand surplus / deficit arising on revaluation of ‘held for trading’ investments is taken to profit and loss account inaccordance with the requirements prescribed by SBP.
b) Held to maturity
c) Available-for-sale
5.3 Advances
a) Other assets especially mentioned
b) Substandard
c) Doubtful
d) Loss
Investments which may be sold in response to needs for liquidity or changes in interest rates, exchange rates or equityprices are classified as available for sale. Available-for-sale investments are initially recognized at cost and subsequentlymeasured at fair value. Profit on available-for-sale investments is recognized on a time proportion basis taking into account the effective yield on the investments.
The surplus / (deficit) arising on revaluation of available for sale investments is kept in "surplus/(deficit) on revaluation ofassets" through statement of comprehensive income. The surplus/(deficit) arising on these investments is taken to profitand loss account, when actually realized upon disposal of the investment.
Advances are stated net of provision for non-performing advances. The outstanding principal and mark-up of the loansand advances, payments against which are overdue for 30 days or more are classified as non-performing loans (NPLs). Theunrealized interest / profit / mark-up / service charges on NPLs is suspended and credited to interest suspense account.Further the NPLs are divided into following categories:
These are advances in arrears (payments/instalments overdue) for 30 days or more but less than 60 days.
These are advances in arrears (payments/instalments overdue) for 60 days or more but less than 90 days.
These are advances in arrears (payments/instalments overdue) for 90 days or more but less than 180 days.
These are advances in arrears (payments/instalments overdue) for 180 days or more.
In addition the Bank maintains a Watch List of all accounts overdue for 5-29 days. However, such accounts are not treatedas non-performing for the purpose of classification/ provisioning.
Premium or discount on acquisition of held to maturity investments is amortized through profit and loss account over theremaining period till maturity.
Investments with fixed maturity, where management has both the intention and the ability to hold to maturity, areclassified as held to maturity. Subsequent to initial recognition at cost, these investments are measured at amortized cost,less provision for impairment in value, if any. Amortized cost is calculated taking into account effective interest ratemethod. Profit on held to maturity investments is recognized on a time proportion basis taking into account the effectiveyield on the investments.
Other assets especially mentioned Nil
Substandard 25% of outstanding principal net of cash collaterals
Doubtful 50% of outstanding principal net of cash collaterals
Loss 100% of outstanding principal net of cash collaterals
In accordance with the Regulations, the Bank maintains specific provision of outstanding principal net of cash collateralsand Gold (ornaments and bullion) realizable without recourse to a Court of Law at the following rates:
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5.4 Operating fixed assets
a) Property and equipment
b) Capital work-in-progress
Non-performing advances are written off one month after the loan is classified as “Loss”. However, the Bank continues itsefforts for recovery of the written off balances.
Property and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Costincludes expenditure that is directly attributable to the acquisition of the asset and the costs of dismantling and removingthe items and restoring on which they are located, if any.
Depreciation is charged on the straight line method at rates specified note 10.2 to the financial statements, so as to writeoff the cost of assets over their estimated useful lives.
Full month's depreciation is charged in the month of addition while no depreciation is charged in the month of deletion.
Subsequent costs are included in the assets carrying amount when it is probable that future economic benefits associatedwith the item will flow to the Bank and the cost of the item can be measured reliably. Carrying amount of the replaced partis derecognized. All other repair and maintenance are charged to income during the year.
Gains or losses on disposal of an item of property and equipment are determined by comparing the proceeds fromdisposal with the carrying amounts. Gains are recognized within "other income" while losses are recognized inadministrative expenses in the profit and loss account.
Capital work-in-progress is stated at cost less impairment losses, if any.
General and specific provisions are charged to the profit and loss account in the period in which they occur.
In addition to above, a general provision is made equivalent to 1.5% (2015: 1%) of the net outstanding balance (advancesnet of specific provisions) in accordance with the requirement of the Regulations.
c) Intangible assets
5.5 Deposits
An intangible asset is recognized if it is probable that the future economic benefits that are attributable to the asset willflow to the Bank and that the cost of such asset can also be measured reliably. These are stated at cost less accumulatedamortization and impairment losses, if any.
Intangible assets comprise of computer software and related applications. Intangible assets are amortized over theirestimated useful lives at rate specified in note 10.3 to the financial statements. Subsequent expenditure is capitalized onlywhen it increases the future economic benefit embodied in the specific asset to which it relates. All other expenditure isrecognized in profit and loss account as incurred.
Deposits are initially recorded at the amount of proceeds received. Mark-up accrued on deposits, if any, is recognizedseparately as part of other liabilities and is charged to the profit and loss account over the period.
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page 61
anthe
5.6 Taxation
a) Current
b) Deferred
The Bank takes into account the current income tax law and decisions taken by the taxation authorities. Those amounts areshown as contingent liabilities wherein, the Bank's views differ from the views taken by the taxation authorities at theassessment stage and where the Bank considers that its view on items of material nature is in accordance with law.
Current tax is the tax due on the taxable income for the year, using tax rates enacted or substantively enacted at thereporting date, taking into account tax credits, rebates and tax losses, if any, and any adjustment to tax payable in respectof previous years.
Deferred tax is accounted for on all major taxable temporary differences between the carrying amounts of assets and theirtaxation base. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will beavailable against which the asset can be utilized. Deferred tax assets are reduced to the extent that it is no longer probablethat the related tax benefit will be realized. At each balance sheet date, the Bank reassesses the carrying and theunrecognized amount of deferred tax assets.
Deferred tax assets and liabilities are calculated at the rate that are expected to apply to the period when the asset isrealized or the liability is settled, based on the tax rates (and tax laws) that have been enacted or substantively enacted bythe balance sheet date.
Income tax on the profit or loss for the year comprises current and deferred tax. Income tax is recognized in the profit andloss account, except to the extent that it relates to items recognized directly in other comprehensive income or belowequity, its related tax is recognized in other comprehensive income or below equity.
5.7 Staff retirement benefits
a) Provident fund
b) Gratuity
5.8 Reserves
a) Statutory reserve
The Bank participates in a defined contribution provident fund for its eligible employees. Monthly contributions are madeby the Bank and its employees at rate of 10% of basic salary.
The Bank maintains provision of gratuity for all its contractual employees, according to the agreement signed with HRSGOutsourcing (Pvt) Limited, an outsourcing company. Gratuity equivalent to one month's last drawn basic salary for eachcompleted year of service is paid to outgoing employees with at least 1 year of past service rendered.
In compliance with the related regulatory requirements, the Bank is required to maintain statutory reserve to whichappropriation equivalent to 20% of the profit after tax is required to be made till such time the reserve fund equalspaid up capital of the Bank. However, thereafter, the contribution is to be reduced to 5% of the profit after tax.
page 62
b) Depositor's protection fund
c) Cash reserve
d) Statutory liquidity requirement
5.9 Provisions
5.10 Foreign currency transactions
A provision is recognized when, and only when, the Bank has a present obligation (legal or constructive) as a result of apast event, it is probable that an outflow of resources embodying economic benefits will be required to settle theobligation, and a reliable estimate can be made of the amount of the obligation.
The financial statements are presented in Pakistani Rupee, which is the Bank's functional currency. Transactions in foreigncurrencies are translated into Pak Rupee at exchange rate on the date of transaction. All monetary assets and liabilities inforeign currencies are translated into Pak Rupee at the rate of exchange approximating those ruling at the balance sheetdate. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at theyear end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in profit andloss account.
In compliance with the related regulatory requirements, the Bank is required to maintain liquidity equivalent to at least10% of its total demand liabilities and time liabilities with tenor of less than one year in form of liquid assets i.e. cash, gold,unencumbered treasury bills, Pakistan Investment Bonds and Government of Pakistan sukuk bonds. Treasury bills andPakistan Investment Bonds held under depositor protection fund are excluded for the purpose of determining liquidity.
The Bank is required under the Microfinance Institutions Ordinance, 2001, to contribute 5% of annual after tax profit andprofit earned on investments of the fund to be credited to depositors protection fund for the purpose of providingsecurity or guarantee to persons depositing money in the Bank.
In compliance with the related regulatory requirements, the Bank is required to maintain a cash reserve equivalent to notless than 5% of its deposits (including demand deposits and time deposits with tenor of less than 1 year) in a currentaccount opened with the State Bank or its agent.
5.11 Revenue recognition
a) Markup / income on advances
b) Income from investments
Markup / income / return / service charges on advances is recognized on accrual / time proportion basis using effectiveinterest rate method at the Bank's prevailing interest rates for the loan products. Markup/ income on advances is collectedwith loan instalments. Due but unpaid service charges / income are accrued on overdue advances for period up to 30 days.After 30 days, overdue advances are classified as non-performing and recognition of unpaid service charges / incomeceases. Further, accrued markup on non-performing advances are reversed and credited to suspense account.Subsequently, markup recoverable on non-performing advances is recognized on a receipt basis in accordance with therequirements of the Regulations.
Markup / income on investments is recognized on accrual / time proportion basis using the effective interest method.Where debt securities are purchased at premium or discount, those premiums / discounts are amortized through profit andloss account over the remaining period of maturity.
c) Fee, commission and brokerage income
d) Income from inter bank deposits
e) Gain/ loss on sale of operating fixed assets
f) Gain/ loss on sale of investments
5.12 Financial instruments
a) Financial assets
Financial assets are cash and balances with SBP and NBP, balances with other banks/NBFls/MFBs, lending to financialinstitutions, investments, advances and other receivables. Advances are stated at their nominal value as reduced byappropriate provisions against non-performing advances, while other financial assets excluding investments are stated atcost. Investments classified as held for trading and available for sale are valued at year end prices and investmentsclassified as held to maturity are stated at amortized cost.
All financial assets and liabilities are initially measured at cost which is the fair value of the consideration given andreceived respectively. These financial assets and liabilities are subsequently measured at fair value, amortized cost orhistorical cost, as the case may be.
Fee, commission and brokerage income is recognized when the related services are rendered.
Income from inter bank deposits in saving accounts is recognized in the profit and loss account as it accrues using theeffective interest method .
Gain on sale of operating fixed assets are recognized under other income in the profit and loss account.
Loss on sale of operating fixed assets are recognized under administrative expenses in the profit and loss account.
Gains and losses on sale of investments are recognised in the profit and loss account.
Financial assets and liabilities are recognized when the Bank becomes a party to the contractual provisions of theinstrument. These are derecognized when the Bank ceases to be the party to the contractual provisions of the instrument.
b) Financial liabilities
5.13 Off-setting
Financial liabilities are classified according to the substance of the contractual arrangement entered into. Financial liabilities include deposit and other accounts and other liabilities which are stated at their nominal value. Financial charges areaccounted for on accrual basis.
Any gain or loss on the recognition and derecognition of the financial assets and liabilities is included in the net profit andloss for the year in which it arises.
Financial assets and financial liabilities and tax assets and tax liabilities are only off-set and the net amount is reported inthe financial statements when there is a legally enforceable right to set off the recognized amount and the Bank intendseither to settle on net basis or to realize the assets and to settle the liabilities simultaneously. Income and expense items ofsuch assets and liabilities are also off-set and the net amount is reported in the financial statements.
page 63
5.14 Borrowing costs
5.15 Mark-up bearing borrowings
5.16 Grants
5.17 Earnings per share
Mark-up bearing borrowings are recognized initially at cost being the fair value of consideration received, less attributabletransaction costs. Subsequent to initial recognition mark-up bearing borrowings are stated at original cost less subsequentrepayments.
The grant related to an asset is recognized in the balance sheet initially as deferred income when grant is received or thereis reasonable assurance that it will be received and that the Bank will comply with the conditions attached to it. Grants thatcompensate the Bank for expenses incurred are recognized as revenue in the profit and loss account on a systematic basisin the same periods in which the expenses are incurred. Grants that compensate the Bank for the cost of an asset arerecognized in the profit and loss account as other operating income on a systematic basis over the useful life of the asset.
The Bank presents basic and diluted earnings per share (EPS) for its shareholders. Basic EPS is calculated by dividing theprofit or loss attributable to ordinary shareholders of the Bank by the weighted average number of ordinary sharesoutstanding during the year. Diluted EPS, if any is determined by adjusting the profit or loss attributable to ordinaryshareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive potentialordinary shares. There were no dilutive potential ordinary shares in issue at December 31, 2016.
Borrowing costs are recognized as an expense in the period in which they are incurred except where such costs relate tothe acquisition, construction or production of a qualifying asset in which case such costs are capitalized as part of the costof that asset. Borrowing cost includes exchange differences arising from foreign currency borrowings to the extent theseare regarded as an adjustment to borrowing costs.
5.18
a)
IFRS 5IFRS 11IAS 1
IAS 16
IAS 19
IAS 27
IAS 38
b)
The management considers that adoption of above amendments and interpretations had no material impact on the Bank'sfinancial statements other than in presentation/disclosure.
Following standard has been issued by the International Accounting Standards Board (IASB), which is yet to be notified by theSecurities and Exchange Commission of Pakistan (SECP) for the purpose of its applicability in Pakistan:
Employee Benefits (Amendments) January 1, 2016
Separate financial statements (Amendments) January 1, 2016
Intangible Assets (Amendments) January 1, 2016
Joint Arrangements (Amendments) January 1, 2016
Presentation of financial statements (Amendments) January 1, 2016
Property, plant and equipment (Amendments) January 1, 2016
Non-current Assets Held for Sale and Discontinued Operations (Amendments) January 1, 2016
Standards, interpretations and amendments to approved accounting standards that are not yet effective
The following amendments and interpretations to published accounting standards were effective during the year and have beenadopted by the Bank:
Effective date (annual periods beginning on or after)
page 64
IFRS 1
IFRS 14 Regulatory Deferral Accounts
c)
IFRS 1
IFRS 2
IFRS 4
IFRS 7
IFRS 12
IFRS 15
IFRS 16
IAS 12
IAS 39
IAS 40 Investment property (Amendments) July 1, 2018
The management anticipates that adoption of above standards and amendments in future periods will have no material impacton the Bank's financial statements other than in presentation/disclosure.
Leases January 1, 2019
Income taxes (Amendments) January 1, 2017
Financial Instruments: Recognition and Measurement (Amendments) January 1, 2018
Financial Instruments (Amendments) January 1, 2018
Disclosure of Interests in Other Entities (Amendments) January 1, 2017
Revenue from Contracts with Customers January 1, 2018
First-time Adoption of International Financial Reporting Standards (Amendments)
January 1, 2018
Share-based payment (Amendments) January 1, 2018
Insurance Contracts January 1, 2018
January 1, 2016
Following standards and amendments to published accounting standards will be effective in future periods and have not beenearly adopted by the Bank.
Effective date (annual periods beginning on or after)
Effective date (annual periods beginning on or after)
First-Time Adoption of International Financial Reporting Standards (Amendments)
July 1, 2009
page 65
2016 2015(Rupees) (Rupees)
6. CASH AND BALANCES WITH SBP AND NBP
Cash in hand 249,860,266 95,892,067 Balance with State Bank of Pakistan (SBP) - note 6.1 466,316,546 170,685,960 Balance with National Bank of Pakistan (NBP) 31,753,200 -
747,930,012 266,578,027
6.1
2016 2015
7. BALANCES WITH OTHER BANKS/NBFIs/MFBs
(Rupees) (Rupees)
In Pakistan
- on current accounts - Local currency - - - on saving accounts - Local currency - note 7.1 1,442,891,348 302,370,277 - on term deposits accounts - Local currency - note 7.2 3,300,000,000 2,100,000,000
4,742,891,348 2,402,370,277 - on current accounts - Foreign currency - note 7.3 - -
4,742,891,348 2,402,370,277
7.1
7.2
7.3
2016 2015
8. INVESTMENTS - net of provisions
(Rupees) (Rupees)
Federal Government securities - available for sale
Pakistan Investment Bonds - 124,622,647
Market treasury bill - note 8.1 1,495,053,230 -
- 649,319
1,495,053,230 125,271,966
8.1
2016 2015(Rupees) (Rupees)
8.2 Particulars of surplus / (deficit) on revaluation of available for sale investments:
Balance at the beginning 649,319 (682,289)
Transferred (from) / to revaluation of assets (649,319) 1,331,608
Balance at the end - 649,319
Surplus / (deficit) on revaluation of available for sale investments - note 8.2
These carry markup at 5.85% and 5.90% per annum maturing on January 19, 2017 and February 2, 2017 respectively.
This includes balance held with SBP in a current account to comply with the requirement of maintaining minimum balanceequivalent to 5% (2015: 5%) of the Bank’s demand deposits and time deposits with tenor of less than one year.
These carry markup ranging from 4% to 6.5% (2015: 4% to 7.15%) per annum.
These carry markup ranging from 6% to 6.25% (2015: 6.6% to 7.45%) per annum.
This account is being maintained with United Bank Limited for the purpose of Home Remittance under Pakistan remittanceinitiative as approved by the SBP.
page 66
9. ADVANCES - net of provisions
2015 Loans
outstanding Amount
outstanding Loans
outstanding Amount
outstanding
(Number) (Rupees) (Number) (Rupees)Micro credit -Secured against gold 12,069 955,190,655 8,583 574,490,934
-Unsecured 79,678 4,978,771,502 18,642 775,824,456
91,747 5,933,962,157 27,225 1,350,315,390
Less: Provision held
Specific provision 41 463,325 - -
General provision - note 9.1 79,678 74,674,623 18,642 7,758,245
79,719 75,137,948 18,642 7,758,245
Advances - net of provisions 5,858,824,209 1,342,557,145
9.1
9.2 Particulars of non-performing advances
Amount outstanding
Provisionrequired
Provisionheld
Amount outstanding
Provision required
Provision held
OAEM 556,040 - - - - -
Sub-standard 1,021,737 41,184 41,184 - - -
Doubtful 512,070 188,735 188,735 - - -
Loss 233,406 233,406 233,406 - - -
2,323,253 463,325 463,325 - - -
9.3 Particulars of provision against non-performing advances
Specific General Total Specific General Total
Opening balance 7,758,245 1,791 2,588,052 2,589,843
Charge for the year 67,610,733 - 5,170,193 5,170,193
Amounts written off (231,030) - - -
Reversals - - (1,791) - (1,791)
Closing balance
-694,355
(231,030)
463,325
7,758,24566,916,378
- -
74,674,623 75,137,948 - 7,758,245 7,758,245
-----------------------Rupees------------------------- ---------------------Rupees-----------------------
2016Category of classification
-----------------------Rupees------------------------- -----------------------Rupees-------------------------
2016
2016
2015
2015
page 67
2016 201510. OPERATING FIXED ASSETS
(Rupees) (Rupees)
Capital Work in progress - note 10.1 4,915,860 2,283,480
Property and equipment - note 10.2 271,020,288 195,696,168
Intangible assets - note 10.3 112,511,373 91,255,190
388,447,521 289,234,838
10.1 Capital Work in progress
Civil works 4,915,860 2,283,480
Equipments - -
Advances to suppliers and contractors - -
Others - -
4,915,860 2,283,480
page 68
10.2 Property and equipment
At January 01 Additions Adjustments
/transfersDisposals/ write offs
At December 31
2016
Furniture and fixture 55,736,451 15,252,634 - (2,243,599) 68,745,486
Electrical, office and
computer equipment 216,147,977 122,751,362 - (2,405,644) 336,493,695
Vehicles 23,138,774 14,028,604 - (13,031,895) 24,135,483
Leasehold improvements 68,859,833 13,180,834 (117,120) (24,690) 81,898,857 363,883,035 165,213,434 (117,120) (17,705,828) 511,273,521
2015
Furniture and fixture 42,167,324 13,753,207 - (184,080) 55,736,451
Electrical, office and
computer equipment 150,935,990 65,426,147 (22,878) (191,282) 216,147,977
Vehicles 24,233,222 1,052,936 - (2,147,384) 23,138,774
Leasehold improvements 59,778,113 10,685,253 - (1,603,533) 68,859,833
277,114,649 90,917,543 (22,878) (4,126,279) 363,883,035
10.2.1 The cost of fully depreciated assets still in use is Rs. 87,619,901 (2015: Rs. 35,838,075)
10.2.2 Detail of disposals of operating fixed assets
Particulars of assets
Vehicles
Mercedez Benz
Honda City
Honda Civic
Cost
------------------------------------------- Rupees ---------------------------------------------
Original Accumulated Book Sale cost depreciation value proceeds
9,194,954 9,194,953 1 2,696,189
1,691,457 1,691,456 1 490,799
2,145,484 1,984,573 160,911 630,000
13,031,895 12,870,982 160,913 3,816,988
page 69
Net book value
At January 01
Charge for the year
Adjustments /transfers
Disposals/ write offs
At December 31
At December 31
Rate per annum
%age
18,644,056 12,869,074 - (1,201,320) 30,311,810 38,433,676 20%
97,149,094 52,713,269 - (2,169,202) 147,693,161 188,800,534 10-33%
17,924,711 4,951,904 - (12,870,982) 10,005,633 14,129,850 25%
34,469,006 17,798,049 (5,394) (19,032) 52,242,629 29,656,228 25%168,186,867 88,332,296 (5,394) (16,260,536) 240,253,233 271,020,288
9,835,521 8,885,943 - (77,408) 18,644,056 37,092,395 20%
62,262,866 34,987,139 (10,101) (90,810) 97,149,094 118,998,883 10-33%
13,523,411 5,877,626 - (1,476,326) 17,924,711 5,214,063 25%
19,652,182 15,667,312 (850,488) 34,469,006 34,390,827 25%
105,273,980 65,418,020 (10,101) (2,495,032) 168,186,867 195,696,168
Mode of
disposal
HR Policy Ghazanffar Azaam (CEO)
HR Policy Samiha Ali Zahid (Head HR)
HR Policy Kamran Adeel (Ex - CFO)
Particulars of buyer
Depreciation
------------------------------------------------------ Rupees --------------------------------------------------------
page 70
10.3
Inta
ngib
le a
sset
s
Net
boo
k va
lue
At
Janu
ary
01
Add
ition
sD
ispo
sals
/ w
rite
offs
At
Dec
embe
r 31
At
Janu
ary
01
Char
ge fo
rth
e ye
arD
ispo
sals
/ w
rite
offs
At
Dec
embe
r 31
At
Dec
embe
r 31
Rate
per
an
num
%ag
e
2016
Soft
war
e Li
cens
e12
8,68
6,70
2
54
,154
,115
-
18
2,84
0,81
7
37
,431
,512
32,8
97,9
32
-
70
,329
,444
112,
511,
373
10-3
3%
128,
686,
702
54,1
54,1
15
-
182,
840,
817
37,4
31,5
12
32
,897
,932
-
70,3
29,4
44
11
2,51
1,37
3
2015
Soft
war
e Li
cens
e69
,241
,006
59,4
45,6
96
-
128,
686,
702
20
,120
,328
17
,311
,184
-
37
,431
,512
91
,255
,190
10
-33%
69,2
41,0
06
59
,445
,696
-
12
8,68
6,70
2
20,1
20,3
28
17,3
11,1
84
-
37
,431
,512
91
,255
,190
10.3
.1Th
is in
clud
es T
emen
os -
24 (R
-10)
sof
twar
e w
ith c
arry
ing
valu
e of
Rs.
31,6
11,2
07 (2
015:
34,5
74,2
72) a
nd re
mai
ning
am
ortiz
atio
n pe
riod
of 4
.9 (2
015:
5.9)
yea
rs.
Cost
Am
ortiz
atio
n
----
----
----
----
----
----
----
----
----
--- R
upee
s ---
----
----
----
----
----
----
---
----
----
----
----
----
----
----
----
----
----
----
Rup
ees -
----
----
----
----
----
----
----
----
----
----
----
--
page 71
2016 2015
(Rupees) (Rupees)
652,412,703 135,934,872
57,985,540 52,733,421
30,342,832 41,646,995
105,935 9,474,513
9,002,299 4,609,785
74,389,688 1,314,794
29,122,426 24,374,021
853,361,423 270,088,401
41,646,995 25,834,011
45,617,739 15,812,984
(56,921,902) -
30,342,832 41,646,995
- 9,386,353
105,935 88,160
105,935 9,474,513
22,541,384 2,327,473
- 4,015,701
75,470,589 194,412,599
117,904 117,904
2,864,304 1,818,001
56,921,902 -
157,916,083 202,691,678
(10,566,396) (8,187,004)
147,349,687 194,504,674
- (48,699) 147,349,687 194,455,975
11. OTHER ASSETS
Income / Markup accrued
Advances, deposits and prepayments
Advance taxation - net - note 11.1
Receivable from related parties - note 11.2
Inventory/ printed stationary
Receivable against Insurance premium - note 11.3Others
11.1 Advance taxation - net - note 11.1
Opening balance
Tax paid
Provision for taxation
Closing balance
11.2 Receivable from related parties
Pakistan Mobile Communication Limited
Business Communication System (private) Limited
11.3
12. DEFERRED TAX ASSET
Deferred tax asset arising on account of deductible temporary differences on:
Provision against non-performing advances
Precommencement expenditure
Unused tax credit
Deferred tax liability arising on account of taxable temporary differences on:
Operating fixed assets
Surplus on revaluation of available for sale investments
12.1
Unused tax losses
Provision for gratuity
Alternate Corporate Tax
This represents the amount receivable from SBP in respect of insurance premium paid by the Bank for livestock and crop loans under AC&MFD Circular No. 1 of 2013 dated November 1, 2013.
Deferred tax asset has been recognised based on the premise that sufficient taxable profits will be available in future years against which unused tax losses amounting to Rs.251.57 million (2015: Rs. 641.06 million) can be utilised.
page 72
13. DEPOSITS AND OTHER ACCOUNTS
Time Liabilities:
Term deposits
Demand Liabilities:
Savings deposits
Current deposits
Branchless deposits
13.1 Particulars of deposits by ownership
Individual depositors
Institutional depositors
a) Corporations/firms etc.
b) Banks & financial institutions
Retailers
Franchisees
Customer care centers
14. Other Liabilities
Mark-up/ Interest payableAccrued expenses
Payable to related parties - note 14.1
Taxes and levies withheld
Payable to suppliers
Bills collected for settlement through NADRA
Uncollected remittances
Bills payable
Provision for gratuity - note 14.2
Others
14.1 Payable to related parties
PMCL
Global Telecom Holding S.A.E - note 14.1.1
LinkdotNet Telecom Limited
Oracap - GTH
2016 2016 2015 2015
Note (Number) (Rupees) (Number) (Rupees)
1,265 2,344,357,034 217 187,191,132
37,808 2,526,149,947 30,421 955,004,926
98,549 1,317,006,773 17,759 473,886,074
7,983,760 4,118,848,713 3,137,203 1,581,229,305
8,120,117 7,962,005,433 3,185,383 3,010,120,305
8,121,382 10,306,362,467 3,185,600 3,197,311,437
8,050,538 5,686,390,251 3,126,691 2,177,843,422
1,031 1,834,000,242 340 484,441,189
33 1,941,623,675 1 15,462,664
69,330 684,321,037 58,158 432,200,784
429 160,025,166 389 82,935,548
21 2,096 21 4,427,830
8,121,382 10,306,362,467 3,185,600 3,197,311,437
2016 2015(Rupees) (Rupees)
6,128,231
51,829,618
3,937,163
49,448,457
240,304,527
60,975,033
136,305,069
33,755,730
6,060,004
104,165,514 692,909,346
25,537,867 -
1,288,580,091 -
- 1,455,040
2,482,123 2,482,123
1,316,600,081 3,937,163
-16-
53,241,065
85,538,644
1,316,600,081
83,654,788
63,492,751
327,679,666
259,244,032
62,307,554
9,547,681
435,695,645 2,697,001,907
page 73
This represents the amount received from PMCL, associated company under a tripartite arrangement with PMCL and Global Telecom Holding S.A.E., the holding company.
14.1.1
14.2 Provision for gratuity
Opening balance
Charge for the year
Payment during the year
Closing balance
15. SHARE CAPITAL
Authorized Capital
2016 2015
Numbers Numbers
150,000,000 150,000,000 Ordinary shares of Rs. 10 each.
Issued, subscribed and paid-up capital
Ordinary shares145,175,360 145,175,360 Fully paid in cash of Rs. 10 each.
6,060,004 3,480,312
5,024,139 4,730,073
(1,536,462) (2,150,381)
9,547,681 6,060,004
1,500,000,000 1,500,000,000
1,451,753,600 1,451,753,600
15.1
16. SURPLUS ON REVALUATION OF ASSETS
Federal government securities- available for sale investments
17. MEMORANDUM / OFF-BALANCE SHEET ITEMS
17.1 Contingencies
There are no contingencies at the year end (2015: Nil).
17.2 Commitments:
Commitments against contracts
18.
- Advances
- Government securities
- On Deposit accounts/placements with other banks/financial institution
MARK-UP/RETURN/INTEREST EARNED
Global Telecom Holding S.A.E. is the holding company controlling 145,175,355 i.e. 99.99% shares (2015: 99.99%) of the Bank.
Interest / Mark-up on;
-
-
2016(Rupees)
995,539,79971,075,993
174,454,2931,241,070,085
600,620
4,558,902
2015(Rupees)
212,595,891
72,959,033
67,752,905
353,307,829
page 74
19. MARK-UP/RETURN/INTEREST EXPENSED
20. FEE, COMMISSION AND BROKERAGE INCOME - NET
Income from branchless banking - note 20.1
Loan processing fee
20.1 Income from branchlessBranchless banking income - note 20.2
Commission to retailer / franchisee
Commission to related party
20.2
2016
21. OTHER INCOME(Rupees)
Gain on disposal of fixed assets 3,660,355
22. ADMINISTRATIVE EXPENSES
Salaries, allowances etc. 598,678,628 Contribution to defined contribution plan 22,669,055 Provision for gratuity 5,024,139 Training / Capacity building 6,323,141 Depreciation - note 10.2 88,332,296 Amortization - note 10.3 32,897,932 Travel and transportation 18,173,194 Rent, taxes, insurance, electricity, etc. 98,080,633 Loss on sale of fixed assets 1,197,466 Stationary and printing 29,962,201 Communications 11,268,723 Repair and maintenance - General 8,278,815 Repair and maintenance - Vehicle 890,239 Legal and professional charges 1,480,989 Auditors' remuneration - note 22.1 1,025,000
Bank charges 47,070,224 IT equipment and software maintenance 96,118,044 Security 38,580,161 NADRA verification charges 119,723,436 Janitorial services 18,351,251 Office supplies 7,908,347
On deposits
Others
2016(Rupees)
255,330,339
528,811,396 143,635,710
31,408,617703,855,723
3,746,551,522 (2,093,138,008) (1,124,602,118)
528,811,396
2015(Rupees)
54,710,577
482,684,687
30,895,903
17,564,301 531,144,891
2,602,612,130 (1,419,701,987)
(700,225,456)
482,684,687
2015(Rupees)
-
384,024,262 14,573,916
4,730,073 5,728,024
65,418,020 17,311,184
8,095,076 61,779,883
87,247 33,983,511
8,378,497
6,806,912 1,074,652 2,549,485
912,342 17,973,201
107,353,797 26,377,545
209,842,026 15,782,310
2,408,848 Entertainment 10,074,619 5,670,890
G2P Project Cost 6,234,346
4,864,060
Advestisement and publicity 3,307,248 1,321,176
Others 15,531,225 11,094,767 1,287,181,352 1,018,141,704
This represents the income from branchless banking operations (Jazz cash formerly Mobicash) carried out by the Bank together with Pakistan Mobile Communication Limited (PMCL) through agency agreement under SBP Branchless Banking Regulations. As per the agreement, Income from Mobicash (Net of Agents commission) is shared between the Bank and PMCL in the ratio of 30:70 respectively.
page 75
22.1 Auditors' remuneration
Audit fee 675,000 675,000
Fee for audit of provident, pension, gratuity and other funds - -
Special certifications 300,000 175,000
Tax services - -
Out of pocket expenses 50,000 62,342
1,025,000 912,342
2016(Rupees)
23. OTHER CHARGES
Penalties imposed by the State Bank of Pakistan - note 23.1 3,629,020
Others - 3,629,020
23.1
24. TAXATION
For the year
Current 56,921,902
Deferred 43,178,379
For the prior years
Current -
Deferred 3,976,608 104,076,889
24.1 Relationship between tax expense and accounting loss
Profit / (Loss) before taxation 334,834,719Tax at applicable tax rate of 31% percent (2015: 32% percent) 31%
103,798,763 Effect of:
- Deferred tax asset not recognized -
- Prior years
- Permanent differences 1,124,996
- Unused tax credits
- Unused tax losses
- Tax rate changes (395,881)
- Others (450,989) 104,076,889
2015(Rupees)
98,000
-
98,000
-
(155,251,133)
-
(1,139,203)
(156,390,336)
(193,667,754)
32%
(61,973,681)
-
520,654
31,360
(117,904)
(106,360,385)
11,513,413
(3,792)
(156,390,336)
The charge for the year represents the penalties paid to the State Bank of Pakistan in the year 2016 against SBP thematic inspection on portfolio review, Branchless banking, Statutory reserve deficit as at December 31, 2015 and incorrect reporting of data to SBP.
page 76
24.2
24.3
25. NUMBER OF EMPLOYEES
Credit / Sales Staff
Banking / Support Total
Credit / Sales Staff
Banking / Support
Total
Permanent 231 291 522 121 256 377 Contractual / temporary 175 54 229 83 160 243
406 345 751 204 416 620
Change in applicable income tax rate from 32% to 31% is due to change in relevant Income tax laws.
2016 2015
2016 2015
26. NUMBER OF BRANCHES/SERVICE CENTRES
(Number) (Number)
Beginning of the year 41 41Opened during the year
-Branches 5 --Service Centers/Booth 8 --Closed / Merged during the year (3) -
At the end of the year 51 41
This includes 35 branches and 16 booths/service centers (2015: 30 and 11)
27. REMUNERATION OF DIRECTORS AND EXECUTIVES
Managerial remuneration
Rent and house maintenance
Utilities
Relocation allowance
Conveyance allowance
Car allowance
Car maintenance
Contribution to defined contribution plan
Fuel allowance / reimbursements
Sales staff incentive
Training compensation
Bonus, Prizes and rewards
Number of persons
2016 2016
Rupees Rupees Rupees Rupees
14,168,940 13,482,545 69,417,600 51,412,434
270,000 270,000 15,339,503 10,997,123
1,416,900 1,348,260 6,941,772 5,153,259
- - 574,318 280,000
- - 1,072,111 698,654
- - 6,380,000 1,690,000
613,556 452,556 774,134 743,948
1,416,900 1,348,260 6,863,705 4,924,507
340,608 440,000 1,775,072 1,606,777
- - 4,733,972 1,562,476
- - 303,000 135,000
7,298,720 2,420,000 18,184,224 9,435,550
25,525,624 19,761,621 132,359,411 88,639,728
1 1 63 47
President/Chief Executive Executives
The provision of tax is recorded as Alternative Coporate Tax as specified in section 113(C) of the Income Tax Ordinance, 2001 (Ordinance).
2015 2015
page 77
a) Executive means any employee whose basic salary exceeds Rs. 500,000 (2015: Rs. 500,000) per year.b)
c)
28. EARNING / (LOSS) PER SHARE (RUPEE)
Profit / (Loss) after taxation - Rupees
Weighted average ordinary shares - Numbers
Profit / (Loss) per share - Rupee
2016
A 230,757,830 (37,277,418)
B 145,175,360 145,175,360 A/B 1.59 (0.26)
29. BALANCES AND TRANSACTIONS WITH RELATED PARTIES
2016(Rupees) (Rupees)
Transactions with related parties by virtue of common Directorship
Deposit Mobilization Commission Paid 66,426,078 31,149,166 Branchless commission (Net of agents commission) 1,058,176,040 669,076,290
Expenses incurred on behalf of the Bank by PMCL 38,463,396 9,608,723
Payments made for expenses incurred on behalf the Bank to PMCL 7,766,843 7,377,677
Services availed from LinkDotNet Telecom Limited - 8,262,160
Payments made against defined contribution plan 32,669,154 25,541,370
Mark-up/ return/ interest expensed to PMCL 32,768,439 3,899,800
Transaction with key management personnel
Remuneration, allowances and benefits - note 29.1 42,787,864 39,244,619
29.1 Remuneration, allowances and benefits
Managerial remuneration 36,895,542 33,682,198
Rent and house maintenance 2,202,750 2,182,500
Utilities 3,689,572 3,379,921
39,244,619
30. CASH AND CASH EQUIVALENTS
Cash and balances with SBP and NBP - note 6
Balances with other banks/NBFIs/MFBs - note 7
747,930,012 266,578,027
4,742,891,348 2,402,370,277
5,490,821,360 2,668,948,304
The President / Chief Executive Officer and certain other executives are provided with free use of the Bank's owned and maintained cars in accordance with their entitlement as per rules of the Bank.
Amount of Rs.150,000 is reimbursed to Non-Executive Director of the bank on account of attending board meetings as per SBP regulation (2015: Rs. 225,000).
The Bank is a subsidiary of Global Telecom Holding S.A.E. (GTH) which holds 99.99% share capital of the Bank. Therefore, all subsidiaries and associated undertakings of GTH are related parties of the Bank. Other related parties include directors, key management personnel which inlcude CEO and Head of Departments (HOD's), entities under common directorship. Remuneration to directors and executives is disclosed in note 27 to these financial statements. Amounts due from and due to the related party companies are shown in note 11 and 14 to these financial statements. All transactions involving related parties are subject to the approval of the Board of Directors. Significant transactions with the related parties other than those referred to in the foregoing entered into during the year are as follows:
Deposits in savings account include an amount of Rs. 501,287,599 (2015: Rs. 282,746,127) of PMCL, whereas the term deposit receipt include an amount of Rs. 50,000,000 placed at a profit rate of 7.5 % per annum (2015: nil) by PMCL.
Deposits in savings account include an amount of Rs. 501,287,599 (2015: Rs. 282,746,127) of PMCL, whereas the term deposit receipt include an amount of Rs. 50,000,000 placed at a profit rate of 7.5 % per annum (2015: nil) by PMCL.
The Bank has not extended financing or other microfinance services to members of management, directors or parties related to them.
42,787,864
2015
2015
page 78
31. FINANCIAL INSTRUMENTS (based on contractual obligation)
Up to one year One to five yearsOver five
yearsSub total
%31 December 2016Financial assetsCash and balances with SBP and NBP - - - - Balances with other banks/NBFIs/MFBs 4-6.25 4,742,891,348 - - 4,742,891,348 Investments 5.85-5.90 1,495,053,230 - - 1,495,053,230 Advances 18-38.40 5,642,054,414 216,769,795 - 5,858,824,209
Other assets - - - -
11,879,998,992 216,769,795 - 12,096,768,787 Financial liabilitiesDeposits and other accounts 6-12.35 4,126,298,749 744,208,232 - 4,870,506,981
Other liabilities - - - - -
4,126,298,749 744,208,232 - 4,870,506,981
Off balance sheet financial instruments:
Commitments - - - -
31 December 2015
Financial assets
Cash and balances with SBP and NBP - - - -
Balances with other banks/NBFIs/MFBs 4-7.45 2,402,370,277 - - 2,402,370,277
Investments 11.5 125,271,966 - - 125,271,966
Advances 18-38.40 1,342,557,145 - - 1,342,557,145
Other assets - - - -
3,870,199,388 - - 3,870,199,388
Financial liabilities
Deposits and other accounts 6-12.35 1,110,794,558 31,401,500 - 1,142,196,058
Other liabilities - - - - -
1,110,794,558 31,401,500 - 1,142,196,058
Off balance sheet financial instruments:Commitments - - - -
Effective yield/interest rate
Interest/Mark up bearing
----------------------------------- Rupees --------------------------------
page 79
Total
Up to one yearOne to five
yearsOver five
yearsSub total 2015
747,930,012 - - 747,930,012 747,930,012 - - - - 4,742,891,348 - - - - 1,495,053,230 - - - - 5,858,824,209
853,361,423 - - 853,361,423 853,361,423
1,601,291,435 - - 1,601,291,435 13,698,060,222
5,435,855,486 - - 5,435,855,486 10,306,362,467 2,680,656,677 16,345,230 - 2,697,001,907 2,697,001,907
8,116,512,163 16,345,230 - 8,132,857,393 13,003,364,374
- - - - -
266,578,027 - - 266,578,027 266,578,027
- - - - 2,402,370,277
- - - - 125,271,966
- - - - 1,342,557,145
274,657,617 - - 274,657,617 274,657,617
541,235,644 - - 541,235,644 4,411,435,032
2,055,115,379 - - 2,055,115,379 3,197,311,437
697,039,474 439,088 - 697,478,562 697,478,562
2,752,154,853 439,088 - 2,752,593,941 3,894,789,999
4,558,902 - - - 4,558,902
Non interest/mark up bearing
----------------------------------------------- Rupees -------------------------------------------
page 80
32. MATURITIES OF ASSETS AND LIABILITIES
Total Up to one monthOver one month up to six month
Over six month up to one year
Over one year
31 December 2016 (Rupees) (Rupees) (Rupees) (Rupees) (Rupees)
Market rate assets
Cash and Balance with SBP and NBP 747,930,012 747,930,012 - - -
Balances with other Banks/NBFIs/MFBs 4,742,891,348 1,442,891,348 3,300,000,000 - -
Investments 1,495,053,230 1,196,584,659 298,468,571 - -
Advances 5,858,824,209 91,523,088 2,013,956,766 3,536,574,560 216,769,795
Total market rate assets 12,844,698,799 3,478,929,107 5,612,425,337 3,536,574,560 216,769,795
Other non-earning assets
Operating fixed assets 388,447,521 532,461 3,429,138 119,138,745 265,347,177
Other assets 853,361,423 172,591,245 652,412,703 28,357,475 -
Deferred tax asset 147,349,687 - - - 147,349,687
Total non-earning assets 1,389,158,631 173,123,706 655,841,841 147,496,220 412,696,864
Total assets 14,233,857,430 3,652,052,813 6,268,267,178 3,684,070,780 629,466,659
Cost/non cost bearing liabilities
Deposits and other accounts 10,306,362,467 8,071,473,702 614,815,397 875,128,905 744,944,463
Other non-cost bearing liabilities
Other liabilities 2,697,001,907 2,637,236,673 11,405,460 32,014,544 16,345,230
Total Liabilities 13,003,364,374 10,708,710,375 626,220,857 907,143,449 761,289,693
Net assets 1,230,493,056 (7,056,657,562) 5,642,046,321 2,776,927,331 (131,823,034)
Represented by :
Share Capital 1,451,753,600
Statutory reserves 46,151,566
Depositor's protection fund 11,537,892
Accumulated Losses (278,950,002)
Surplus / (deficit) on revaluation of assets
- 1,230,493,056
page 81
On behalf of the Board of Directors, I would like to appreciate the hard work put in by the employees of the bank in taking various initiatives during the year. I, on behalf of the Board, express gratitude to the State Bank of Pakistan for its continued support and guidance. Taking this opportunity, I would also thank, on behalf of the Board & the management, the customers for entrusting confidence in us and assure them that we remain committed to maintaining high service standards and a strong corporate governance and compliance in all our endeavors.
For and on behalf of the Board
32. MATURITIES OF ASSETS AND LIABILITIES
Total Up to onemonth
Over one month up to six month
Over six month up to one year
Over one year
31 December 2015 (Rupees) (Rupees) (Rupees) (Rupees) (Rupees)
Market rate assets
Cash and Balance with SBP and NBP 266,578,027 266,578,027 - - -
Balances with other Banks/NBFIs/MFBs 2,402,370,277 302,370,277 2,100,000,000 - -
Investments 125,271,966 - - 125,271,966 -
Advances 1,342,557,145 27,137,732 369,472,261 945,947,152 -
Total market rate assets 4,136,777,415 596,086,036 2,469,472,261 1,071,219,118 -
Other non-earning assets
Operating fixed assets 289,234,838 - 2,908,535 4,965,122 281,361,181
Other assets 274,657,617 236,214,850 20,527,114 14,592,801 3,322,852
Deferred tax asset 194,455,975 - - - 194,455,975
Total non-earning assets 758,348,430 236,214,850 23,435,649 19,557,923 479,140,008
Total assets 4,895,125,845 832,300,886 2,492,907,910 1,090,777,041 479,140,008
Cost/non cost bearing liabilities
Deposits and other accounts 3,197,311,437 3,014,835,315 51,219,001 68,287,800 62,969,321
Other non-cost bearing liabilities
Other liabilities 697,478,562 694,589,720 825,166 751,058 1,312,618
Total Liabilities 3,894,789,999 3,709,425,035 52,044,167 69,038,858 64,281,939
Net assets 1,000,335,846 (2,877,124,149) 2,440,863,743 1,021,738,183 414,858,069
Represented by :
Share Capital 1,451,753,600
Accumulated losses (452,018,374)
(Deficit) / surplus onrevaluation of assets
600,6201,000,335,846
33. RECLASSIFICATION
Rupees (as previously reported)
Rupees (as reclassified)
Payable to related parties 8,506,379 3,937,163 Receivable from related parties 14,043,729 9,474,513 Fee, Commission and Brokerage income 2,651,072,334 531,144,891 Commission expense (2,119,927,443) -
34. GENERAL
35. DATE OF AUTHORIZATION FOR ISSUE
Figures have been rounded off to the nearest rupee unless otherwise stated.
These financial statements were authorized for issue by the Board of Directors of the Bank in their meeting held on 24th March 2017.
The corresponding figures as at December 31, 2015 have been reclassified for more appropriate presentation. These reclassifications have no effect on previously reported net loss or shareholders' equity. The effect on presentation of the balance sheet as at December 31, 2015 and profit and loss account for the year ended December 31, 2015 is summarized below:
page 82
page 83
Branch Names And Contacts
Faisalabad
FaisalabadP-7, Santpura Main Allama Iqbal Road Opposite GC University Faisalabad041-2620622
Toba Tek SinghShop #240-241,Mall GoDown Road,Grain Market,Toba Tek Singh046-2510721
GojraShop no.1 Azeem plaza, Near Sabzi Mandi, Borh Wali Gali, Quaid e azam road, Tehsil Gojra District Toba Tek Singh046-3511461
JhangBuilding No.93, Near Girls College Chowk, Gojra Road, Jhang Saddar047-7650148-9
ShorkotNear Ghani Petrol Pump Lari Ada Jhang Road Shorkot City047-5310178
ChiniotNear NADRA office Faisal Abad Road Chiniot047-6330181
Layyah
BhakkarWard # 12/6 near Nasir hospital Mandi Town Bhakkar0453-514014
Chowk AzamMM Fateh Pur Road, Sial Colony, Chowk Azzam0606-381141
Chowk Sarwar ShaheedOpposit Ghala Mandi Gate No 2 Near ZTBL main Multan Road Chowk Sarwar Shaheed. District Muzafargarh066-2210621
Darya KhanMain Bhakkar Road, Opposite GPO, Darya Khan0453-252314
Koror Lal EssanFateh Pur road opposite ZTBL Karor Lal Essan0606-811555
Kot AdduShop No. 476 Ward No.11 Main GT Road Kot Adu Distt Muzaffar Garh0662-243591
LayyahPlot # 134,Mohallah Qadirahabad,near Moti mosque,Chobarah Road Layyah0606-410141
MankeraShop no. 4 Bhatti markit, Opposite UBL-Jhang road, Mankera045-3410101
Multan
DunyapurShop # 6-9, Faizan E Madina Road, Kazmi Chowk, Dunyapur0608-304342
JalalpurArain Plaza,Opposite Allied Bank Permat Road, Jalalpur Pirwala0614-420197
Kehror PeccaDunya Pur Road, Kehror Pacca0608-340223
LodhranSaad Plaza, Shop # 1-3, Near Choti Nagar, Main Bahalwalpur Road, Lodhran0608-361104
Multan3626 AB, Azmat wasti road, Chowk Sadu Hassam, Multan061-4588868
MuzafargarhJhang Road Chungi # 02, Near wapda office Muzafargarh0662-422472
ShujabadOpposite Munawarah Masjid, Jalalpur Road, Shujaabad061-4397599
page 84
Pannu Aqil
DharakiProperty No. 446, Near EFU office , Main Road, Deharki0723644402
HalaDargah Road, Opposite HBL, New Hala, District Matiari223331124
HyderabadPlot # D-1 & D4, Mobilink House, Main Auto Bhan Road, Near Standard Chartered Bank, Latifabad, Hyderabad022-3411038
Karachi-DHA40D, 24th Commercial Street, Phase II Extension, DHA, Karachi021-34328516
Pannu AqilPlot No. 435, Baiji road, Pannu Akil District, Sukkur.071-5692437
RanipurShop No. 1 & 2, Behind Al-Shifa Medical Center, Near Askari Bank, Main National Highway, Ranipur.0243-730372
SadiqabadNishter chowk fanous, cinema road, near KPL road, Sadiqabad0685-705333
LarkanaShaikh Muhallah, survey no. 72 old anaj Mandi, near Haji Dhani Bux oil mill, Bank Square Road Larkana074-4040133
QambarOld bus Stand, Mian Mangan Main Road Qamber074-4211442
Peshawar
AbbotabadGround Floor, Shalimar Motors, Mansehra Road, Abbotabad0992-384488
HaripurShop#7-8,Naeem Khan Market,GT Road,opposite Total Pump,Haripur0995-627725
IslamabadKaghan Road F-8 Markaz Islamabad051-2817101 ext 1225
MardanNaeem Khan Market College Chowk,Mardan.093-7875123
MuzafarabadNeelum Road Near 4 Field Masjid Lower Plate Muzaffarabad05822-449114-5
PeshawarMobilink Contact Center, Near Arbab Road, University Rd, Peshawer.091-5711626
SwabiShop #1, Fazal Dad Khan Market, Mardan Road, Near Meezan Bank, Swabi0938-222325
Rahim Yar Khan
AhmedpurShop # 2/2, Opposite MAPCO Office, Kuchehri Road, Ahmedpur East.062-2271443
ChishtianPlot # 68-D,Gulistan Plaza Gurdwara Road,Main Bazar Chishtian063-2500177
Fort AbbasGrain Market, Along with Meezan bank , Fort Abbas063-2510120
HaroonabadJamia Masjid Road, Near UBL bank, Haroonabad063-2250041
HasilpurMain Bazar, Baldia Road, Near Bank of Punjab, Hasilpur062-2441094
KhanpurShop # 1 & 2, Quaid-e-Millat Road, Khanpur, District Rahim Yar Khan068-5577072
LiaquatpurPlot #7,Ghalla Mandi Road,Liaqatpur0685-693442
Rahim Yar KhanBin Hakim Plaza Shahi Road, Opposite Police Station City A Division, Behind Zam Zam Plaza, Rahim Yar Khan0685-878071
page 85
Sahiwal
Arif WalaMain Muhammadi Road, Adjacent NRSP Bank, Arifwala045-7830510
BurewalaAl Ramay industeries, Near Khushhali bank limited, Multan road Burewala067-3770828
LahoreE-17/5-1, Main Walton Road, Islam Nagar, Lahore042-36628256
Mian ChanuBatalvi Plaza, Near Ghallani Plaza, Shaheed Road, Mian Channu.065-2660287
PakpattanEx-Punjab Bank Building, Adjacent Telenor Franchise, College Road, Pakpattan.0457-372172
SahiwalOffice No G-3 Ground Floor,Plot no 515-B,Saeed center,opposite DPO office,Farid Road,Sahiwal040-4222219
BasirpurHaveli road opposite Girls degree college Basirpur.0444-771010
MinchinabadPlot No. 150 Circular Road Minchanabad0632-750244
Sargodha
BhalwalKhewat # 100, Khattoni # 103, Liaquat Shaheed road Bhalwal District Sargodha.048-6643406
Chota SahiwalVinni House, Jhang Sargodha Road, Tehsil Chota Sahiwal, District Sargodha048-6786157
KhushabShop No. 198, block No. 14, Main Bazar Jouharabad, District Khushab.0454-721491
Mandi Baha UddinAli Plaza, Cinema Road, Near Civil Lines Hospital, Mandi Baha Uddin.054-6500942
SargodhaZahoor Plaza, Hussain Chowk, Noori Gate, Sargodha048-3768825
SialkotM.A. Heights, Defence Road, Sublime Chowk, Khewat No 343, Khatoni No 724,Khasra No.24,Opposite WAPDA OFFICE, Sialkot052-3258877
PasrurNarowal By Pas Pasru Road Pasrur Near PSO Petrol Pump052-6442724