TAKAFUL PAKISTAN LIMITED QUARTER ENDED MARCH 31, 2015

Transcription

1 QUARTER ENDED MARCH 31, 2015

2 OUR VISION To spread Takaful benefits beyond borders, beyond Time! OUR MISSION To deliver Takaful as a viable alternative to conventional insurance. To become the top-of-the-mind Takaful brand for our Participants in terms of competitiveness, service standards and business ethics To give value for money to our shareholders and make Takaful Pakistan their prized asset. To become an ideal organization for our employees that encourages them to achieve self-actualization and growth. To contribute positively and proactively for the welfare of our society at large as well as for the preservation of our environment. OUR AMBITION To be a role model for the contemporary insurance industry and eventually bring it in conformity with the Shariah compliant Takaful mode of insurance.

3 CONTENTS Corporate Information Board Committees Management Team Branch Network Directors Review Condensed Interim Balance Sheet 07 Condensed Interim Profit & Loss Account 09 Condensed Interim Statement of Comprehensive Income 10 Condensed Interim Statement of Changes in Equity 11 Condensed Interim Statement of Cash Flows 12 Condensed Interim Statement of Contributions 14 Condensed Interim Statement of Claims 15 Condensed Interim Statement of Expenses 16 Condensed Interim Statement of Investment Income 18 Notes to the Condensed Interim Financial Information 19

4 CORPORATE INFORMATION Chairman of Board of Directors Directors Chief Executive Officer Chief Finance Officer and Company Secretary Shariah Advisor Auditor Legal Advisors Mr. Tahir Naz Siddique Syed Tariq Husain Syed Abdul Razzaq Mr. Ahmad Shuja Kidwai Mr. Haseeb Ahmed Dr. Mumtaz A. Hashmi Mr. Nadeem Rafi Dr. Syed Arif Hussain Jamil Ahmed Mufti Imtaiz Alam M.Yousuf Adil Saleem & Co. Chartered Accountants Surridge & Beecheno Advocates, Consultants, Attorneys Mohsin Tayebaly & Co. Corporate Legal Consultants, Barristers & Advocates High Courts & Supreme Court Head office 6th floor, Business Centre, Plot No 19-1-A, Block -6, P.E.C.H.S., Shahrah-e-Faisal, Karachi-75400, Pakistan. UAN : (021) Tel : (+92-21) (10 Lines) Fax : (+92-21) info@takaful.com.pk Website :

5 Bankers Meezan Bank Limited Bank Islami Pakistan Limited Dubai Islamic Bank Limited Burj Bank Limited Al Baraka Bank (Pakistan) Limited Habib Bank Limited (Islamic Banking Division) Faysal Bank Limited (Islamic Banking Division) Askari Bank Limited ( Islamic Banking Division) Bank AlFalah Limited (Islamic Banking Division) Habib Metropolitan Bank (Islamic Banking Division) National Bank of Pakistan (Islamic Banking Division) Bank of Khyber (Islamic Banking Division) UBL (Islamic Banking Division) BOARD COMMITTEES Audit Committee Syed Tariq Husain Dr. Mumtaz A. Hashmi Abdul Razzaq Risk Management Committee Tahir Naz Siddique Syed Tariq Hussain Dr. Mumtaz A. Hashmi Human Resource Committee Syed Tariq Hussain Ahmed Shuja Kidwai Nadeem Rafi

6 MANAGEMENT TEAM Dr. Syed Arif Hussain Jamil Ahmed Kashif Masood Muhammad Adnan Sharif Moeen ud Din Rizwan-ul-Haq Akbar Ali Qureshi Jawwad Bin Yousuf Dr. Aamir Siddiqui Abdul Haseeb Fakih Muhammad Irfan Muhammad Saeed Shaikh Azeemuddin Chief Executive Officer General Manager, Chief Financial Officer and Company Secretary Assistant General Manager and Head of Operations Assistant General Manager (Marketing) Assistant General Manager (Marketing) Assistant General Manager (Marketing) Senior Manager & Head of Fire, Property Underwriting & Re-takaful Senior Manager & Head of Motor & Accident Underwriting Senior Manager & Head of Group Health Underwriting Senior Manager & Head of Risk Management Senior Manager & Head of Accounts Senior Manager & Head of Information Technology Senior Manager & Head of Human Resources & Administration BRANCH NETWORK Branch Branch Head Branch Address Karachi Muhammad Adnan Sharif 6th floor, Business Centre, Plot No 19-1-A, Block -6, P.E.C.H.S., Shahrah-e-Faisal, Karachi. UAN: (021) Fax: (021) Lahore Moeen ud din 130-E/1, Main Boulevard Gulberg-III, Lahore. UAN: (042) Fax: (042) Peshawar Raza Ali 6th Floor, State Life Building, 34-The Mall, Peshawar Cantt, Peshawar. UAN: (091) Fax: (091) Faisalabad Ghulam Mustafa Office # 3, 2nd floor, Wahab Centre, Main Susan Road, Faislabad. UAN: (041) Fax: (041)

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8 CONDENSED INTERIM BALANCE SHEET (UNAUDITED) AS AT 31 MARCH 2015 AS AT 31 MARCH December Shareholders' Participants' 2014 Note Fund Takaful Fund Aggregate Aggregate (Rupees) SHARE CAPITAL AND RESERVES Authorised share capital [50,000,000 (2014: 50,000,000) ordinary shares of Rs. 10 each] 500,000, ,000, ,000,000 Paid-up share capital [30,000,000 (2014: 30,000,000) ordinary shares of Rs. 10 each] 300,000, ,000, ,000,000 Accumulated losses (129,072,370) - (129,072,370) (136,877,694) Qarda-e-hasna (11,211,134) - (11,211,134) (11,211,134) 159,716, ,716, ,911,172 PARTICIPANTS' TAKAFUL EQUITY (PTF) Balance of Waqf / Participants' Takaful Fund (PTF) - (16,732,638) (16,732,638) (11,211,134) Qarda-e-hasna - 11,211,134 11,211,134 11,211,134 - (5,521,504) (5,521,504) - UNDERWRITING PROVISIONS Provision for outstanding claims (including IBNR) - 97,067,181 97,067,181 99,377,655 Provision for unearned contributions - 154,893, ,893, ,318,047 Provision for Contribution Deficiency Reserve - 3,000,000 3,000,000 3,000,000 Unearned re-takaful rebate - 4,313,127 4,313,127 5,644,186 Total underwriting provisions - 259,273, ,273, ,339,888 CREDITORS AND ACCRUALS Contributions received in advance - 2,332,619 2,332,619 2,203,316 Amounts due to takaful/re-takaful companies - 35,383,804 35,383,804 37,418,436 Unearned wakala fees 61,957,366-61,957,366 54,927,216 Wakala fees payable and other account balances - 59,772,157 59,772,157 54,310,027 Mudarib fees payable - 911, ,177 1,841,660 Accrued expenses 1,791,919 1,791,919 1,575,773 Other creditors and accruals 5. 10,246,823 15,934,296 26,181,119 27,648,303 73,996, ,334, ,330, ,924,731 TOTAL LIABILITIES 73,996, ,607, ,603, ,264,619 TOTAL EQUITY AND LIABILITIES 233,712, ,086, ,798, ,175,791 CONTINGENCIES AND COMMITMENTS The annexed notes form an integral part of this condensed interim financial information.

9 CONDENSED INTERIM BALANCE SHEET (UNAUDITED) AS AT 31 MARCH 2015 Note AS AT 31 MARCH December Shareholders' Participants' 2014 Fund Takaful Fund Aggregate Aggregate (Rupees) ASSETS CASH AND BANK DEPOSITS Cash and other equivalents 101, , , ,910 Current and other accounts 2,454,530 39,072,533 41,527,063 35,375,350 Deposits maturing within 12 months 114,400, ,100, ,500, ,500, ,955, ,580, ,536, ,280,260 LONG TERM DEPOSITS 1,523,034-1,523,034 1,523,034 INVESTMENTS 7. 20,241,381 19,936,583 40,177,964 35,525,121 CURRENT ASSETS - OTHERS Contributions due but unpaid - 50,453,376 50,453,376 37,698,198 Amounts due from other takaful companies - 876, ,529 2,326,333 Salvage recoveries accrued - 500, , ,000 Taxation - payment less provision 9,193,523-9,193,523 9,013,032 Accrued investment income 5,884,454 2,183,072 8,067,526 11,409,556 Re-takaful recoveries against outstanding claims - 24,826,147 24,826,147 27,002,169 Wakala fees receivable and other account balances 55,261,385-55,261,385 49,799,256 Mudarib fees receivable 911, ,177 1,841,659 Deferred wakala fees - 61,957,366 61,957,366 54,927,216 Deferred commission expense 7,963,111-7,963,111 7,900,924 Prepayments 1,979,095 32,439,313 34,418,408 35,494,437 Sundry receivables 848, ,664 1,182,284 1,251,612 82,041, ,569, ,610, ,164,392 FIXED ASSETS Tangibles and Intangibles Leasehold improvements 1,877,507-1,877,507 1,979,707 Furniture and Fixtures 3,984,511-3,984,511 4,291,043 Office Equipment 2,783,744-2,783,744 2,930,140 Computers 1,956,274-1,956,274 1,941,770 Motor vehicles 2,348,822-2,348,822 2,540,324 12,950,858-12,950,858 13,682,984 Computer software TOTAL ASSETS 233,712, ,086, ,798, ,175,791 The annexed notes form an integral part of this condensed interim financial information.

10 CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (UNAUDITED) Note 31 March 2014 Fire and Marine, Motor Health Miscellaneous Aggregate Aggregate property aviation and damage transport (Rupees) PARTICIPANTS' TAKAFUL FUND (PTF) Net contribution revenue 2,149,897 1,277,198 40,612,350 14,383,592 24,030 58,447,067 41,374,657 Net claims 34,469 - (19,161,906) (13,654,553) (231,742) (33,013,732) (29,225,363) Wakala fee (4,167,438) (1,871,745) (17,348,339) (5,753,436) (132,076) (29,273,034) (21,531,593) Retakaful rebate earned 2,396,745 1,050, ,587 3,502,543 1,913,689 Direct expenses (1,061) (1,753) (7,393,899) - (39) (7,396,752) (4,563,792) Net underwriting results before participants' investment income 412, ,911 (3,291,793) (5,024,398) (284,240) (7,733,908) (12,032,403) Investment income 2,888,223 3,573,737 Less: Modarib's share (722,056) (893,434) Net investment income 2,166,167 2,680,303 Other income 52,561 5,476 Bank charges (6,324) (15,858) Total Surplus/(deficit) transferred to balance of Waqf / Participants' Takaful Fund (5,521,504) (9,362,481) SHAREHOLDERS' FUND (SHF) Wakala fee 29,273,034 21,531,593 Commission expense (4,475,085) (4,127,913) Management expenses 9. (12,672,183) (8,628,658) 12,125,766 8,775,022 Modarib's share of PTF investment income 722, ,434 Investment income 3,034,186 2,700,500 Other income 174, ,015 General and administration expenses 10. (7,519,770) (5,765,340) Profit before taxation 8,537,150 6,808,632 Provision for taxation - current (731,826) (538,290) Net profit after tax 7,805,324 6,270,342 Earning per share - basic and diluted The annexed notes form an integral part of this condensed interim financial information.

11 CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME SHAREHOLDERS' FUND (SHF) 31 March 31 March (Rupees) Net profit after tax 7,805,324 6,270,342 Other comprehensive income - - Total comprehensive income for the period 7,805,324 6,270,342 The annexed notes form an integral part of this condensed interim financial information.

12 CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY / FUND FOR THE PERIOD ENDED MARCH 31, 2015 Issued, subscribed and paid-up capital SHAREHOLDERS' FUND Accumulated loss Balance at 01 January ,000,000 (142,970,825) 157,029,175 Profit for the three months period ended March 31, ,270,342 6,270,342 Balance at 31 March ,000,000 (136,700,483) 163,299,517 Profit for the nine months period ended 31 December ,361,676 2,361,676 Other compreshensive income - recognition of actuarial gain for nine months ended 31 December (2,538,887) (2,538,887) Balance at 31 December ,000,000 (136,877,694) 163,122,306 Total comprehensive income for the three months period ended 31 March ,805,324 7,805,324 Balance at 31 March ,000,000 (129,072,370) 170,927,630 Total (Rupees) WAQF / PARTICIPANTS' Accumulated TAKAFUL FUND Cede (deficit) / money surplus Total (Rupees) Balance at 01 January ,000 4,514,815 5,014,815 Deficit for the three months period ended 31 March (1,677,342) (1,677,342) Balance at 31 March ,000 2,837,473 3,337,473 Deficit for the nine months period ended 31 December (14,548,577) (14,548,577) Balance at 31 December ,000 (11,711,104) (11,211,104) Deficit for the three months period ended 31 March (5,521,504) (5,521,504) Balance at 31 March ,000 (17,232,608) (16,732,608) The annexed notes form an integral part of this condensed interim financial information.

13 STATEMENT OF CASH FLOWS Operating cash flows 31 March 31 March (Rupees) Underwriting activities Contributions received 80,490,989 54,502,255 Net re-takaful paid (1,626,302) (1,919,110) Claims paid (42,470,372) (29,929,825) Commissions paid (4,567,900) (3,276,781) Other underwriting receipts/(payments) (9,169,357) (2,451,427) Net cash flow from underwriting activities 22,657,058 16,925,112 Other operating activities Income tax paid (912,318) (1,201,155) General administrative and management expenses paid (20,991,649) (14,432,045) Other operating receipts/(payments) (452,160) (168,098) Advances to employees (324,712) (492,595) Net cash flow from other operating activities (22,680,839) (16,293,893) Total cash flow from all operating activities (23,782) 631,219 Investment activities Profit / return received 9,386,278 7,004,054 Recovery of principal ijara sukuks 5,275, ,564 Proceeds from disposal of investments 92, ,096 Net movement in term deposits (10,000,000) (3,000,000) Fixed capital expenditure (161,600) (304,000) Total cash flow from investing activities 4,593,527 4,368,714 Financing activities Ijarah rentals paid (313,815) (279,614) Total cash flow from financing activities (313,815) (279,614) Net cash inflow from all activities 4,255,930 4,720,319 Cash at the beginning of the period 287,280, ,019,405 Cash at the end of the period 291,536, ,739,724

14 31 March 31 March (Rupees) Reconciliation to profit and loss account Operating cash flows (23,782) 631,219 Depreciation expense (893,726) (759,790) Ijarah rentals (313,815) (279,614) Provision for taxation (731,826) (538,290) Provision for staff retirment benefit - 513,040 Investment income 5,900,717 6,276,238 Increase/(decrease) in assets other than cash 14,981,306 (7,606,413) (Increase)/decrease in liabilities other than running finance (23,233,497) (5,697,242) Cash flow from investing activities 4,593,527 4,368,714 Profit/(Loss) after taxation 278,904 (3,092,140) Breakup of profit / (loss) after tax Participants' Takaful Fund (5,521,504) (9,362,481) Shareholders' Fund 7,805,324 6,270,342 2,283,820 (3,092,140) Definition of cash and cash equivalents Cash and cash equivalents for the purposes of Statement of Cash Flows consist of cash in hand, policy stamps, bond papers, bank balances and other deposits which are readily convertible to cash and which are used in the cash management function on a day-to-day basis. The annexed notes form an integral part of this condensed interim financial information.

15 STATEMENT OF CONTRIBUTIONS Business underwritten inside Pakistan 31 March 2014 Class Gross Unearned contribution reserve Contribution Re-takaful Prepaid re-takaful Re-takaful Net Net written Opening Closing earned ceded contribution ceded expense contribution contribution contribution Opening Closing revenue revenue A B C D=A+B-C E F G H=E+F-G I=D-H (Rupees) Direct and Facultative Fire and property damage 5,349,788 21,772,442 16,703,635 10,418,595 4,044,421 15,997,225 11,772,948 8,268,698 2,149,897 4,389,034 Marine, aviation and transport 5,689,106 2,758,861 3,768,602 4,679,365 3,946,813 1,976,678 2,521,324 3,402,167 1,277,198 2,041,895 Motor 64,687,394 88,851, ,168,188 43,370,850 2,758, ,758,500 40,612,350 25,704,417 Health 15,001,601 23,084,037 23,702,046 14,383, ,383,592 9,137,552 Miscellaneous 30, , , , , , , ,159 24, ,759 Total 90,757, ,318, ,893,417 73,182,591 10,889,822 18,419,988 14,574,286 14,735,524 58,447,067 41,374,657 Treaty Proportional / non proportional Grand total 90,757, ,318, ,893,417 73,182,591 10,889,822 18,419,988 14,574,286 14,735,524 58,447,067 41,374,657 The annexed notes form an integral part of this condensed interim financial information.

16 STATEMENT OF CLAIMS Business underwritten inside Pakistan 31 March 2014 Class Claims Outstanding claims Claims Re-takaful Re-takaful and other Re-takaful Net claims Net Claim Paid Opening Closing expense and other recoveries in respect of and other expense Expense recoveries outstanding claims recoveries received Opening Closing revenue A B C D=A-B+C E F G H=E-F+G I=D-H (Rupees) Direct and Facultative Fire and property damage 2,810,355 20,273,170 17,980, ,760 1,568,754 15,918,626 14,902, ,229 (34,469) 6,421,304 Marine, aviation and transport - 5,333,589 5,333, ,281,244 2,281, ,076,648 Motor 24,901,036 55,844,209 56,271,746 25,328,573 7,552,667 7,762,750 6,376,750 6,166,667 19,161,906 11,883,441 Health 14,552,969 15,082,591 14,184,175 13,654, ,654,553 7,714,525 Miscellaneous 10,485 2,844,096 3,297, ,485 5,243 1,539,549 1,766, , , ,445 Total 42,274,845 99,377,655 97,067,181 39,964,371 9,126,664 27,502,169 25,326,144 6,950,639 33,013,732 29,225,363 Treaty Proportional / non proportional Grand total 42,274,845 99,377,655 97,067,181 39,964,371 9,126,664 27,502,169 25,326,144 6,950,639 33,013,732 29,225,363 The annexed notes form an integral part of this condensed interim financial information.

17 STATEMENT OF EXPENSES - PARTICIPANTS' TAKAFUL FUND Business underwritten inside Pakistan Class 31 March 2014 Net Retakaful Net Net Gross Deferred wakala fee Wakala fee Other direct Underwriting earned takaful takaful wakala fee Opening Closing expired expenses expenses rebate * expense expense A B C D=A+B-C E F=D+E G H=F-G (Rupees) Direct and Facultative Fire and property damage 2,139,915 8,708,977 6,681,454 4,167,438 1,061 4,168,499 2,396,745 1,771,754 3,398,527 Marine, aviation and transport 2,275,642 1,103,544 1,507,441 1,871,745 1,753 1,873,498 1,050, ,287 1,623,981 Motor 25,874,958 35,540,656 44,067,275 17,348,339 7,393,899 24,742,238-24,742,238 15,445,168 Health 6,000,640 9,233,614 9,480,818 5,753,436-5,753,436-5,753,436 3,658,021 Miscellaneous 12, , , , ,115 55,587 76,528 55,999 Total 36,303,184 54,927,216 61,957,366 29,273,034 7,396,752 36,669,786 3,502,543 33,167,243 24,181,696 Treaty Proportional / non proportional Grand total 36,303,184 54,927,216 61,957,366 29,273,034 7,396,752 36,669,786 3,502,543 33,167,243 24,181,696 The annexed notes form an integral part of this condensed interim financial information.

18 STATEMENT OF EXPENSES - SHAREHOLDERS' FUND Business underwritten inside Pakistan 31 March 2014 Commission Net Other Net Net paid or Deferred commission commission management SHF SHF payable Opening Closing expense expenses Expenses Expenses A B C D=A+B-C E F=D+E (Rupees) Direct and Facultative Fire and property damage 545,384 3,291,843 2,333,714 1,503, ,970 2,250,483 3,088,535 Marine, aviation and transport 847, , , , ,348 1,468,738 1,779,781 Motor 2,647,861 3,183,008 4,244,710 1,586,159 9,032,051 10,618,210 6,408,301 Health 493, , , ,592 2,094,616 2,774,208 1,452,096 Miscellaneous 2,627 81,163 52,359 31,431 4,199 35,630 27,858 Total 4,537,272 7,900,924 7,963,111 4,475,085 12,672,183 17,147,268 12,756,571 Treaty Proportional / non proportional Grand total 4,537,272 7,900,924 7,963,111 4,475,085 12,672,183 17,147,268 12,756,571 The annexed notes form an integral part of this condensed interim financial information.

19 STATEMENT OF INVESTMENT INCOME 31 March 31 March Income from non-trading investments (Rupees) Participants' Takaful Fund (PTF) Profit on bank deposits and placements 2,866,531 3,456,860 Available for sale Gain on sale of Islamic Mutual Fund 21, ,877 2,888,223 3,573,737 Less: Modarib's fee (722,056) (893,434) Net investment income 2,166,167 2,680,303 Shareholders' Fund (SHF) Profit on bank deposits and placements 2,465,078 2,016,749 Held to maturity Return on government securities 198, ,918 Return on other securities 373, , , ,751 3,037,186 2,702,500 Less: Investment related expenses (3,000) (2,000) Net investment income 3,034,186 2,700,500

20 NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) 1. STATUS AND NATURE OF BUSINESS Takaful Pakistan Limited (the Company) is an unlisted public limited company incorporated in Pakistan on 2 June 2006 under the Companies Ordinance, The Company has been established with the objective to carry out General Takaful Business as specified under the Insurance Ordinance 2000, Insurance Rules, 2002 and Takaful Rules, On 9 March 2007, the Securities and Exchange Commission of Pakistan's Insurance Division has issued "Certificate of Registration" to the Company under the provisions of section 6 of the Insurance Ordinance, Consequently, the Company has commenced commercial operations from 12 March The registered office of the Company is at Plot No A, 6th Floor, Business Centre, P.E.C.H.S., Shahrah-e-Faisal, Karachi. For the purpose of carrying on the Takaful business, the Company has formed a Waqf for Participants' equity. The Waqf, namely Takaful Pakistan Waqf (hereinafter referred to as the Participants' Takaful Fund or PTF) was formed on 22 January 2007 under the Trust deed executed by the Company with a seed money of Rs. 500,000. The seed money is required to be invested in Shariah compliant investments and any profit thereon can be utilized only to pay benefits to participants or defray PTF expenses. The accounts of the Waqf are maintained by the Company in a manner that the assets and liabilities of the Waqf remain separately identifiable. These financial statements have been prepared on an aggregate basis, duly including the financial position and results of operations of the Waqf. Waqf deed also governs the relationship of shareholders and participants for management of Takaful operations, investment of participants' funds and investment of shareholders' funds approved by the Shariah Board established by the Company. 2. BASIS OF PREPARATION These condensed interim financial statements are unaudited and have been prepared in condensed form in accordance with the approved accounting standards as applicable to insurance companies in Pakistan for interim financial reporting and in the format requirement of prescribed by Securities and Exchange Commission (Insurance) Rules, 2002, with appropriate modifications based on the advice of the Shariah Board of the Company. These condensed interim financial statements do not include all of the information required for full financial statements and should be read in conjunction with financial statements for the year ended 31 December As required by the Code of Corporate Governance applicable to unlisted insurance companies, these financial statements are being submitted to the shareholders as well as to the Securities and Exchange Commission of Pakistan. 3. ESTIMATES AND JUDGEMENTS The preparation of this condensed interim financial information in conformity with approved accounting standards requires management to make estimates, assumptions and use judgments that affect the application of policies and reported amounts of assets and liabilities and income and expenses. Estimates, assumptions and judgments are continually evaluated and are based on historical experience and other factors, including reasonable expectations of future events. Revisions to accounting estimates are recognized prospectively commencing from the period of revision. The financial and takaful risk management objectives and policies of the Company are consistent with those disclosed in the financial statements as at and for the year ended December 31, SIGNIFICANT ACCOUNTING POLICIES The accounting policies and methods of computation followed in the preparation of this condensed interim financial information are the same as those applied in the preparation of the annual financial statements of the Company for the year ended December 31, 2014.

21 31 March December Shareholders' Participants' Aggregate 2014 Fund Takaful Fund Aggregate (Rupees) OTHER CREDITORS AND ACCRUALS Commission payable to agents 8,135,097-8,135,097 8,165,726 Federal excise duty - 3,662,785 3,662,785 3,377,497 Federal insurance fee - 306, , ,177 Withholding Tax 13, , , ,625 Contribution due to other re-takaful/insurance companies - 3,244,431 3,244,431 2,335,331 Provision for compensated absences 256, , ,054 Security deposit 771, ,509 1,352,039 Other payables 1,070,701 8,407,427 9,478,128 11,598,854 10,246,823 15,934,296 26,181,119 27,648, CASH AND BANK DEPOSITS Cash and other equivalents - Cash 101, ,436 49,010 - Policy stamps and bond papers in hand 407, , , , , , ,910 Current and other accounts - Current accounts 3, , ,404 1,628,567 - PLS savings accounts 2,451,424 38,885,235 41,336,659 33,746,782 2,454,530 39,072,533 41,527,063 35,375,349 Deposits maturing within 12 months -Term deposits 114,400, ,100, ,500, ,500, ,955, ,580, ,536, ,280, INVESTMENTS Held to maturity - GOP Ijarah Sukuks 12th Issue ,000,000-10,000,000 10,000,000 - Other Sukuks ,239,506-25,239,506 30,515,368 35,239,506-35,239,506 40,515,368 Less: Provision for impairment (14,998,125) - (14,998,125) (14,998,125) 20,241,381-20,241,381 25,517,243 Available for sale - Quoted - Islamic Funds - 19,936,583 19,936,583 10,007,878 20,241,381 19,936,583 40,177,964 35,525, GOP Ijarah sukuks 12th Issue Effective yield Profit Face value Market value Maturity date % payment (Rupees) (Rupees) GOP Ijarah sukuk certificates 100 certificates (2014: 100 certificates) of Rs. 100,000 each 7.2 Other Sukuk Certificates 6 months T Bill Semi-annually 10,000,000 10,109,000 November 21, 2015 Engro Chemical Pakistan Limited - Sukuk Certificates 6 months Semi-annually 5,000,000 5,063,255 September 06, KIBOR + 1.5% 2015 Agritech Limited - Sukuk Certificate 6 months Semi-annually 15,000,000 NPA* August 06, KIBOR + 2% 2019 Quetta Textile Mills Limited - Sukuk Certificates 6 months Quarterly 8,000,000 NPA* March 26, KIBOR % 2020

22 8. FIXED ASSETS Cost of operating assets that were acquired/disposed off during the three months period ended 31 March 2015 is as follows: Additions Disposals (Rupees) Tangibles Computers 161,600 - Total 161, MANAGEMENT EXPENSES - SHF Three months' Three months' period ended period ended 31 March 31 March (Rupees) Salaries, wages and benefits 9,443,633 5,700,329 Rent, rates and taxes 992, ,052 Utilities 222, ,752 Communications 242, ,127 Printing and stationery 217, ,720 Travelling and entertainment 424, ,356 Repairs and maintenance 101, ,259 Vehicle running and maintenance 250, ,330 Advertisements and promotions 238, ,626 Ijarah rentals 219, ,730 Fees and subscription 216, ,650 Other expenses 101,830 22,727 12,672,183 8,628, GENERAL AND ADMINISTRATION EXPENSE - SHF Salaries, wages and benefits 4,047,271 2,442,998 Rent, rates and taxes 425, ,308 Utilities 95,498 70,608 Communications 103,950 96,483 Printing and stationery 93,102 80,451 Travelling and entertainment 182,073 96,153 Repairs and maintenance 43, ,539 Vehicle running and maintenance 107, ,142 Advertisements and promotions 102, ,268 Ijarah rentals 94,145 83,884 Fees and subscription 92,787 44,422 Depreciation 893, ,790 Takaful expense 120,470 34,187 Shariah board/advisor honorarium 210, ,000 Legal and professional 674, ,625 Auditors' remuneration 183, ,240 Bank charges 7,024 4,502 Other expenses 43,641 9,740 7,519,770 5,765, DATE OF AUTHORIZATION This condensed interim financial information was authorized for issue on 06 May 2015 by the Board of Directors of the Company