1st quarter report 2017 - trust investment bank …mr. asad ali kazmie member human resource and...

TRUST INVESTMENT BANK Trust InvestmentBank Limited

1st Quarterly Report (un-audited)For the period ended September 30,

2017

TRUST INVESTMENT BANK TRUST INVESTMENT BANK LIMITED

FOR THE QUARTER ENDED SEPTEMBER 30, 2017

Company Information

Directors Report To Share Holders

Condensed Interim Stand Alone Financial Information (un-audited)

Condensed Interim Balance Sheet (un-audited)

Condensed Interim Profit And Loss Account (un-audited)

Condensed Interim Statement Of Comprehensive Income (un-audited)

Condensed Interim Statement Of Cash Flows (un- Audited)

Condensed Interim Statement Of Changes In Equity (un-audited)

Notes To And Forming Part Of The Condensed Interim Financial Information (un-audited)

Condensed Interim Consolidated Financial Information (un-audited)

Condensed Interim Consolidated Balance Sheet (un-audited)

Condensed Interim Consolidated Profit And Loss Account (un-audited)

Condensed Interim Consolidated Statement Of Comprehensive Income (un-audited)

Condensed Interim Consolidated Statement Of Cash Flows (un-audited)

Condensed Interim Consolidated Statement Of Changes In Equity (un-audited)

Notes To The Condensed Interim Consolidated Financial Information (un-audited)

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CONTENTS

TRUST INVESTMENT BANKTRUST INVESTMENT BANK LIMITED


COMPANY INFORMATION

Board of Directors

Mr. Asif Kamal DirectorMr. Tariq Husain DirectorSyed Sajjad Hussain Rizvi DirectorMr. Mamoon-ur-Rashid Qureishi DirectorMr. Abdul Shakeel DirectorMr. Asad Ali Kazmie Director Mr. Ahsan Rafique Director/Chief Executive Officer

Audit CommitteeMr. Abdul Shakeel ChairmanMr. Asif Kamal MemberMr. Asad Ali Kazmie Member

Human Resource and Remuneration CommitteeMr. Mamoon-ur-Rashid Qureishi ChairmanMr. Asif Kamal MemberMr. Ahsan Rafique Member

Company SecretaryZahra Khalid

Chief Financial Officer Khurram Sabah

Head of Internal AuditorRehan Butt

AuditorsTARIQ ABDUL GHANI MAQBOOL & CO.Chartered Accountants

Legal AdvisorChaudhry Mahmood-ur-Rehman

RegistrarsCORPLINK (PVT.) LTD.1-K Commercial, Model Town, [email protected]@corplink.com.pk

Registered & Head Office6th Floor, M. M. Tower, 28-A/K, Gulberg-II, Lahore.Tel: 042-3581 7601-05 Fax: 042-3581 7600Email: [email protected]: www.trustbank.com.pk


FOR THE QUARTER ENDED SEPTEMBER 30, 2017 03

The Directors are pleased to present the Un-Audited Condensed Interim Standalone and Consolidated Financial Information of Trust Investment Bank for the quarter ended, September 30, 2017.

Financial Summary or Highlights/Performance of the Company:

The operating results and appropriations, for the quarter ended September 30, 2017 along with the corresponding figures for the last year are as under.

Particular

Operating Expenses 9.9 11.5Profit before taxation 1.28 .52Profit after taxation 1.28 .52Earnings per Share (Basic) Rs. 0.01 Rs. 0.01Earnings per Share (Diluted) Rs. 0.01 Rs. 0.01

Companies Overview:

The bank is steadily improving over the last four years and continued its journey toward perpetually improving profitability. The management is focused on to reduce the expenses, improve revenues, increase the efficiency and optimal utilization of resources and expedite the recoveries.

Profit before tax for the quarter has been increased from Rs. 0.52 million to 1.28 million. Total liabilities declined from Rs. 2,495.53 million to Rs. 2,349.18 million. Current ratio is also improved significantly from 0.64 times (2016) to 2.16 times (2017). TIBL's basic and diluted earnings per share up by 30.83 % to Rs. 0.60 and 46.22 % to Rs. 0.60 respectively.

During the period, bank continued settlements and restructuring of overdue liabilities. Some non-current assets are classified as held for sale amounting to Rs. 280.00 million to settle its overdue current liabilities. Efforts for recoveries from stuck up portfolio continued with slight improvement over the past year. The Preference Shares are converted into Ordinary Shares and gradual restructuring of Term Finance Certificates (TFC) is going on.

The most significant thing is that Auditor's opinion was modified this year. Bank also improved its equity by Rs. 491 million The Company has recognized tax losses of Rs. 2,300,000 million of the past years that will give relief to the bank in the coming years.

Future Outlook:

Despite the challenging environment, we are optimistic about the future of the company. Bank is gradually coming out of the turmoil it had been facing in past years. Last year we anticipated increase in equity which has been materialized. We also foresee further rise in capital as well which will help long term sustainability of the company and to overcome its liquidity constraints. Management will continue with its commitment not to increase its borrowings in the coming year. Company has started new businesses at limited scale and it will flourish in coming years. The management believes that the Bank will be able to continue as a going concern and meet its obligations towards its creditors in view of the mitigating factors stated herein.

Subsidiary Company:

The Bank's wholly owned subsidiary, Logic Management Services Private Limited is engaged in consultancy services. Consolidated financial statements of the Bank and LMS for the quarter ended September 2017 are included in this report.

thIn the year ending June 30 2015, the shares of TDL were derecognized as subordinated loan. However, shares are still in the custody of TIBL until the formal approval of SECP and other formalities.

DIRECTORS' REPORT TO SHARE HOLDERS

For the quarter ended

September 30, 2017 September 30, 2016

(Rupees in millions)



Director Compliance:

The Board is aware of its responsibilities under the Code of Corporate Governance and is pleased to report that:

· The financial statements, prepared by the management of the Bank, present its state of affairs fairly, the result of its operations, cash flows and changes in equity;

· Proper books of account of the Bank have been maintained;

· Appropriate accounting policies have been consistently applied in preparation of financial statements and accounting estimates are based on reasonable and prudent judgment;

· International Financial Reporting Standards, as applicable in Pakistan, have been followed in preparation of financial statements and any departure has been adequately disclosed and explained in this annual report;

· The system of internal control is sound in design and has been effectively implemented and monitored;

· There are no significant doubts upon Bank's ability to continue as a going concern;

· There has been no material departure from the best practices of corporate governance as detailed in the Listing Regulations being notified by the Pakistan Stock Exchange;

· The Statement of Code of Ethics and Business Practices has been developed and acknowledged by the directors and employees of the Bank.

· All the major decisions relating to investment or disinvestment of funds, changes in significant policies and overall corporate strategies, appointment, remuneration and terms and conditions of appointment of Chief Executive and Executive Director are taken by the Board.

Audit Committee:

The internal control frame work has been effectively implemented through an independent in house Internal Audit Function. The audit committee is performing its duties in line with its terms of reference as determined by the Board of Directors. The Audit Committee of the Board comprises of three non-executive directors. The coordination between External and Internal Auditors was facilitated to ensure efficiency and contribution to the Bank's objectives, including a reliable financial reporting system and compliance with laws & regulations.

Acknowledgement:

The Directors of bank would like to show their appreciation of the support of SECP and other regulatory bodies and shareholders for achieving good results and hope that this cooperation and support continues to grow in the future. The directors of the bank would also like to express their deep appreciation for the services, loyalty and efforts being continuously rendered by the employees of the Company and hope that they will continue to do so in the future. We would also thanks to SECP for their continued support and patronage extended during the challenging period.

For and on behalf of the Board of Directors

Lahore Mamoon Ur Rashid Ahsan RafiqueOctober 31, 2017 Director President & Chief Executive Officer





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Trust Investment Bank Limited

1st Quarterly Report (un-audited)

For the period ended September 30, 2017

Condensed InterimStandalone Financial Information



ASSETSNon-current assetsFixed assets 6 527,830,579 528,376,089Investment property 7 1,970,571,427 1,970,571,427Long term investments 8 11,920,530 11,963,894Long term loans and advances 9 - -Net investment in lease finance 10 - -Long term deposits 3,602,231 3,602,231

2,513,924,767 2,514,513,641

Current assets Current maturities of non - current assets 11 1,006,505,643 1,011,480,764Short term loans and advances 12 74,486,984 70,151,078Short term investments 13 1,000,000 -Short term prepayments 399,893 289,511Mark-up accrued 14 192,903,158 192,719,996Taxation - net 1,382,534 1,367,210Other receivables 15 314,448,046 311,267,131Cash and bank balances 16 5,785,298 4,784,171

1,596,911,556 1,592,059,861Assets Held For Sale 280,000,000 280,000,000TOTAL ASSETS 4,390,836,323 4,386,573,502

EQUITY AND LIABILITIESShare capital and reservesAuthorized Share Capital 17 2,200,000,000 2,200,000,000Share capital 17 1,383,982,139 1,383,982,139Reserves 18 (2,468,686,609) (2,469,970,886)Long term financing-subordinated loan 19 129,238,590 129,238,592Loan From Related Party 20 2,490,547,689 2,490,547,689

1,535,081,812 1,533,797,534Non-current liabilitiesLong term financing-others 21 20,952,780 20,952,780Long term morabaha 22 - -Liabilities against assets subject to finance lease 23 456,837 604,415Long term certificates of investment 24 219,262,389 221,062,389Deferred liabilities 25 8,053,270 8,053,270Long term deposits 26 105,163,490 88,467,647

353,888,766 339,140,501Current liabilitiesShort term borrowings 27 39,413,532 39,413,532Short term certificates of investment 28 465,970,519 465,970,519Current maturities of non current liabilities 29 1,305,974,991 1,305,974,991Mark-up accrued 30 168,270,073 168,270,073Trade and other payables 31 53,138,322 61,908,044Total current liabilities 2,032,767,437 2,041,537,159

2,386,656,203 2,380,677,660Liabilities against assets classified held for sale 469,098,308 472,098,308CONTINGENCIES AND COMMITMENTS - -

4,390,836,323 4,386,573,502

The annexed notes from 1 to 34 form an integral part of these condensed interim financial information.

CONDENSED INTERIM BALANCE SHEET (un-auditd)AS AT SEPTEMBER 30, 2017

Un-auditedSeptember 30,

2017Rupees

AuditedJune 30,

2017RupeesNote



CHIEF EXECUTIVE DIRECTOR CHIEF FINANCIAL

Income

Income from lease operations - -Income from investments 52,996 83,488Income from term loans 7,582,800 3,505,707Commission Income 3,714,176 3,435,003

11,349,972 7,024,198

Finance cost 54,566 355,50611,295,406 6,668,692

Administrative and operating expenses 9,967,764 11,550,0251,327,642 (4,881,333)

Other income - 5,583,8071,327,642 702,474

Other operating expenses - -(Loss) / profit before provisions and taxation 1,327,642 702,474

Provision (reversed) / charged against lease and term loan - -Impairment charged in the value of investment 43,364 177,560

43,364 177,560Profit before taxation 1,284,278 524,914

Provision for taxation - -Net profit for the year 1,284,278 524,914

Earnings per share - basic 0.01 0.01

Earnings per share - diluted 0.01 0.01


FOR THE QUARTER ENDED SEPTEMBER 30, 2017Un-audited

September 30,2017

Rupees


2016Rupees

CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (un-audited)






Net profit for the year 1,284,278 524,914

Other comprehensive income / (loss)

Items that may be reclassified subsequently to profit and loss account

- Unrealized gain/ (loss) on remeasurement of available for sale investments - -

- Gain during the year transferred to profit and loss account on derecognition of available for sale investment

Items not to be reclassified to profit and loss account in subsequent periods

- Remeasurement of defined benefit liability - -

Total comprehensive income for the year 1,284,278 524,914


FOR THE QUARTER ENDED SEPTEMBER 30, 2017Un-audited

September 30,2017

Rupees


2016Rupees

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (un-audited)





CONDENSED INTERIM STATEMENT OF CASH FLOWS (un- Audited)

CASH FLOWS FROM OPERATING ACTIVITIESProfit before taxation 1,284,278 524,914

Adjustments for non cash / non operating items:Depreciation and amortization 755,422 677,966Provision for staff service cost - -Provision (reversed) / charged against lease and term loan - -Lease receivables written off - -Finance cost 54,566 355,506Profit / (loss) on disposal of fixed assets - 2,159,954Profit on settlement - -Impairment charged in the value of investment 43,364 177,560

853,352 3,370,986Operating (loss) / profit before working capital changes 2,137,630 3,895,900

Changes in operating assets and liabilities:(Increase) / decrease in assets:

Long term loans and advances - -Net investment in lease finance 4,975,121 4,990,665Long term deposits - -Short term loans and advances (5,850,058) (1,175,359)Short term placements (1,000,000) (5,000,000)Short term prepayments (110,382) (2,067,127)Mark-up accrued (183,162) (1,983,945)Other receivables (3,180,915) 920,071

(5,349,396) (4,315,695)

Increase / (decrease) in liabilities:Certificates of investment (4,800,000) (4,600,000)Trade and other payables 9,222,806 (9,264,079)Long term deposits 0 11,649,993

4,422,806 (2,214,086)(926,590) (6,529,781)

Cash (used in) / generated from operations 1,211,040 (2,633,881)

Finance cost paid - -Taxes paid - -Staff service cost paid - -

- -Net cash used in operating activities 1,211,040 (2,633,881)


2017Rupees


2016RupeesNote




CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of fixed assets (209,912) (206,046)Capital work in progress - -Long term investments - -Long term deposits - -Proceeds from disposal of: Fixed assets - -

Net cash generated from investing activities (209,912) (206,046)

CASH FLOWS FROM FINANCING ACTIVITIES

Long term financing - -Dividend - -

Net cash used in financing activities - -Net (decrease) / increase in cash and cash equivalents 1,001,127 (2,839,928)Cash and cash equivalents at the beginning of the year (34,629,361) (24,465,167)Cash and cash equivalents at the end of the year 33 (33,628,234) (27,305,095)



2017Rupees


2016RupeesNote



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1. LEGAL STATUS AND NATURE OF BUSINESS

Trust Investment Bank Limited and its subsidiary company ("the Group") comprises of holding company Trust Investment Bank Limited ("TIBL") and a wholly owned unquoted subsidiary company "Logic Management Servies (Private) Limited (LMS) formerly: Trust Capital (Private) Limited (TCPL)".

1.01. Parent company

Trust Investment Bank Limited ("the Company") was incorporated in 1992 as a public limited Company under the Companies Ordinance, 1984 (now "Companies Act, 2017") and is listed on Lahore, Karachi and Islamabad Stock Exchanges. The registered office of the Company is situated at 6th Floor, M M Tower, 28 - A / K, Gulberg II, Lahore. The Company is mainly engaged in the business of investment finance services. It is classified as a Non-Banking Finance Company (NBFC) and is regulated by the Securities and Exchange Commission of Pakistan (SECP).

1.02. Subsidiary Company

"Logic Management Servies (Private) Limited (LMS) formerly: Trust Capital (Private) Limited (TCPL)". was incorporated as a private limited company on 20 June 2008 under the Companies Ordinance, 1984 (now "Companies Act, 2017") . LMS is engaged in the business of consultancy services, portfolio management and trading in listed securities on all the three Stock Exchanges of Pakistan. The registered office of the Company is situated at 6th Floor, M M Tower, 28 - A / K, Gulberg II, Lahore. LMS is a member of the Lahore Stock Exchange Limited.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board as are notified under the Companies Ordinance, 1984 (now "Companies Act, 2017") , the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (the NBFC Rules), the Non-Banking Finance Companies and Notified Entities Regulation, 2008 (the NBFC Regulation) and the directives issued by the Securities and Exchange Commission of Pakistan (SECP). Wherever the requirements of the Companies Ordinance 1984 (now "Companies Act, 2017") , the NBFC Rules, the NBFC Regulations or the directives issued by the SECP differ with the requirements of IFRS, the requirements of the Companies Ordinance 1984 (now "Companies Act, 2017") , the NBFC Rules, the NBFC Regulation or the directives issued by the SECP shall prevail.

3. BASIS OF CONSOLIDATION

Subsidiary is fully consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date that such control ceases. The financial statements of the subsidiary is prepared for the same reporting period as the parent company, using consistent accounting policies. All intra-group balances, income and expenses, unrealised gains and losses and dividends resulting from intra-group transactions are eliminated in full.

4. BASIS OF MEASUREMENT

These financial statements have been prepared under the historical cost convention except for revaluation of certain financial instruments and property at fair value and recognition of certain employee retirement benefits at present value.

5. SIGNIFICANT ACCOUNTING POLICIES

The accounting policies applied for the preparation of this interim financial statements are same as those applied in preparation of financial statements as on 30 June 2017.

NOTES TO AND FORMING PART OF THE CONDENSED INTERIMFINANCIAL INFORMATION (un-audited)



6. FIXED ASSETS

TangibleProperty, plant and equipment 527,830,579 528,376,089Capital work in progress - -

527,830,579 528,376,089

7. INVESTMENT PROPERTY

Opening balance 1,970,571,427 1,970,571,427Addition during the year - -

1,970,571,427 1,970,571,427Disposal during the year - -

1,970,571,427 1,970,571,427

8. LONG TERM INVESTMENTS

Investment in subsidiary-at cost 60,000,000 60,000,000Investment in financial instruments 40,329,060 40,329,060

100,329,060 100,329,060Less: Impairment in the value of investments 49,534,780 49,491,416

8.01 50,794,280 50,837,644Less: Current portion of long term investments 11 38,873,750 38,873,750

11,920,530 11,963,894

8.01. Particulars of long term investments

Long term investments-considered good 50,794,280 50,837,644Long term investments-considered doubtful 49,534,780 49,491,416

100,329,060 100,329,060Less: Impairment in the value of investments 49,534,780 49,491,416

50,794,280 50,837,644

9. LONG TERM LOANS AND ADVANCES

Secured:Employees - considered good - -Companies, organizations and individualsConsidered good 31,190,779 31,190,779Considered doubtful 2,547,805 2,547,805

33,738,584 33,738,58433,738,584 33,738,584

Un-secured:Companies, organizations and individuals - Considered doubtful 393,125,286 393,125,286

426,863,870 426,863,870Less: provision against doubtful loans 393,386,559 393,386,559

33,477,311 33,477,311Less : current maturity 11 33,477,311 33,477,311

- -


2017Rupees

AuditedJune 30,

2017RupeesNote



10. NET INVESTMENT IN LEASE FINANCE

Lease payments receivable 1,016,440,907 1,021,416,028Add: Residual value 273,917,501 273,917,501Gross investment in leases 1,290,358,408 1,295,333,529

Less: Income suspended 83,564,305 83,564,305 Provision for lease losses 272,639,521 272,639,521

356,203,826 356,203,826Net investment in lease finance 934,154,582 939,129,703Less: Current portion of net investment in lease finance 11 934,154,582 939,129,703

- -

11. CURRENT MATURITIES OF NON-CURRENT ASSETS

Long term investments 8 38,873,750 38,873,750Long term loans and advances 9 33,477,311 33,477,311Net investment in lease finance 10 934,154,582 939,129,703

1,006,505,643 1,011,480,764

12. SHORT TERM LOANS AND ADVANCES

Short term loans-secured 12.01 34,646,749 34,646,749Short term advances 39,840,235 35,504,329

74,486,984 70,151,078

12.01. Short term loans-secured

Companies, organizations and individualsConsidered good 34,932,749 34,932,749Considered doubtful - -

34,932,749 34,932,749Less: Provision against doubtful loans 286,000 286,000

34,646,749 34,646,749

13. SHORT TERM INVESTMENTS

Held to MaturityTerm Deposit Receipts (TDR) 1,000,000 -Considered doubtful:Repurchase agreement lendings (Reverse Repo) 7,022,877 7,022,877Placement with First Fidelity Leasing Modaraba 1,000,000 1,000,000

9,022,877 8,022,877Less: Provision against doubtful lending 8,022,877 8,022,877

1,000,000 -




2017Rupees

AuditedJune 30,

2017RupeesNote

14. MARK-UP ACCRUED

Mark-up accrued on:Term finance certificates and Sukuks 962,652 2,458,304Short term and long term loans 22,956,543 21,277,729Investments in lease 168,983,963 168,983,963

192,903,158 192,719,996

15. OTHER RECEIVABLES

Receivable from broker - considered doubtful 11,614,432 11,614,432Miscellaneous receivables from lessees - Considered doubtful 386,288,156 386,108,526Other receivablesConsidered good 272,759,232 269,757,947Considered doubtful 4,625,524 4,625,524

277,384,756 274,383,471675,287,344 672,106,429

Less: Provision for doubtful receivables 360,839,298 360,839,298314,448,046 311,267,131

16. CASH AND BANK BALANCES

Cash in hand 910,730 374,207Cash with banks in:Current accounts 244,194 244,194Deposit accounts 4,630,374 4,165,770

4,874,568 4,409,9645,785,298 4,784,171

17. SHARE CAPITAL

Un-Audited Audited Un-Audited Audited30-September 30-June 30-September 30-June

2017 2017 2017 2017No. of shares No. of shares Authorized Rupees Rupees

150,000,000 150,000,000 Ordinary shares of Rs. 10 each 1,500,000,000 1,500,000,00070,000,000 70,000,000 Preference shares of Rs. 10 each 700,000,000 700,000,000

220,000,000 220,000,000 2,200,000,000 2,200,000,000Issued, subscribed and paid up

20,142,984 20,142,984 Ordinary shares of Rs. 10 each 201,429,840 201,429,840fully paid-up in cash

30,650,000 30,650,000 Ordinary shares of Rs. 10 each 306,500,000 306,500,000issued against preference shares

38,409,889 38,409,889 Ordinary shares of Rs. 10 each 384,098,889 384,098,889issued as bonus shares

30,682,239 30,682,239 Ordinary shares of Rs. 10 each 306,822,390 306,822,390issued against Other Than Right

18,513,102 18,513,102 Ordinary shares of Rs. 10 each 185,131,020 185,131,020issued against DividendPreference Shares

138,398,214 138,398,214 1,383,982,139 1,383,982,139




2017Rupees

AuditedJune 30,

2017Rupees

18. RESERVES

Capital reservesStatutory reserve 259,437,746 259,437,746Unrealized loss on remeasurement of available for sale investments - -

259,437,746 259,437,746Revenue reservesGeneral reserve 61,000,000 61,000,000Accumulated loss (2,789,124,355) (2,790,408,632)

(2,728,124,355) (2,729,408,632)(2,468,686,609) (2,469,970,886)

19. LONG TERM FINANCING - SUBORDINATED LOAN

Long term financing-subordinated loan 19.01 129,238,590 129,238,592

19.01. Particulars of subordinated loan

Loan from:Director-Asif Kamal 99,810,000 99,810,000Director-Asad Kazmi 29,428,590 29,428,590

129,238,590 129,238,592

20. LOAN FROM RELATED PARTIES

Loan from:Director-Asif Kamal 523,026,262 523,026,262Director-Asad Kazmi 1,967,521,427 1,967,521,427

2,490,547,689 2,490,547,689

21. LONG TERM FINANCING - OTHERS

Banking companies and other financial institutions-Secured 744,997,832 744,997,832Banking companies and other financial institutions-Unsecured 13,751,959 13,751,959Term finance certificates (TFC)-Secured 171,449,518 171,449,518

930,199,309 930,199,309Less: Current portion shown under current liabilities 29 909,246,529 909,246,529

20,952,780 20,952,780

22. LONG TERM MORABAHA

Long term morabaha 15,500,000 15,500,000Less: Current portion shown under current liabilities 29 15,500,000 15,500,000

- -

23. LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE

Present Value of of minimum lease payments 1,083,999 1,231,577Less: Current portion 29 627,162 627,162

456,837 604,415




2017Rupees

AuditedJune 30,

2017RupeesNote

24. LONG TERM CERTIFICATES OF INVESTMENT

- Corporate Secured 22,371,263 22,371,263 Unsecured 228,445,994 230,245,994


219,262,389 221,062,389

25. DEFERED LIABILITIES

Gratuity 7,012,782 7,012,782Leave encashment 1,040,488 1,040,488

8,053,270 8,053,270

26. LONG TERM DEPOSITS

Margin against letters of guarantee 180,801,961 164,106,118Less: Current portion shown under current liabilities 29 75,638,471 75,638,471

105,163,490 88,467,647

Deposits against lease arrangements 273,407,961 273,407,961Less: Current portion shown under current liabilities 29 273,407,961 273,407,961

- -105,163,490 88,467,647

27. SHORT TERM BORROWINGS

Banking companies and other financial institutions:

Running finances - secured 39,413,532 39,413,532

28. SHORT TERM CERTIFICATES OF INVESTMENT

- Financial institutions 2,350,006 2,350,006 - Corporate 463,620,513 463,620,513 - Individuals - -

465,970,519 465,970,519

29. CURRENT MATURITIES OF NON CURRENT LIABILITIES

Long term financing - others 21 909,246,529 909,246,529Liabilities against assets subject to finance lease 23 627,162 627,162Long term morabaha 22 15,500,000 15,500,000Certificates of investment 24 31,554,868 31,554,868Long term deposits 26 349,046,432 349,046,432

1,305,974,991 1,305,974,991




2017Rupees

AuditedJune 30,

2017RupeesNote

30. MARK-UP ACCRUED

Secured - Short and long term financing 67,490,905 67,490,905 - Term finance certificates 12,833,632 12,833,632

- -80,324,537 80,324,537

Unsecured - Certificates of investment 87,945,536 87,945,536

168,270,073 168,270,073

31. TRADE AND OTHER PAYABLES

Unclaimed dividend 3,092,624 3,092,624Preference dividend payable - -Accrued liabilities 10,714,317 18,109,608Other liabilities 39,331,381 40,705,812

53,138,322 61,908,044

32. EARNING PER SHARE BASIC AND DILUTED

Net Profit for the period 1,284,278 524,914

Weighted average number of shares 138,398,214 76,819,540

Earning per share - basic 0.01 0.01



Earning per share - diluted 0.01 0.01

33. CASH AND CASH EQUIVALENTS

Cash and Bank Balances 5,785,298 4,784,171Short term running finance (39,413,532) (39,413,532)

(33,628,234) (34,629,361)

34. DATE OF AUTHORIZATION

These condensed interim financial information were authorized for issue on October 31, 2017 by the Board of Directors.





2017Rupees

AuditedJune 30,

2017RupeesNote

Trust Investment Bank Limited

1st Quarterly Report (un-audited)

For the period ended September 30, 2017

Condensed InterimConsolidated Financial Information



ASSETSNon-current assetsFixed assets 6 528,550,138 529,120,013Intangible assets 7 30,737,864 30,756,784Investment property 8 1,970,571,427 1,970,571,427Long term investments 9 1,455,310 1,455,310Long term loans and advances 10 - -Net investment in lease finance 11 - -Long term deposits 17,684,139 14,684,139

2,548,998,878 2,546,587,673Current assets Current maturities of non - current assets 12 1,006,505,643 1,011,480,764Short term loans and advances 13 74,486,984 70,151,078Short term investments 14 1,000,000 -Short term prepayments 399,893 289,511Mark-up accrued 15 192,903,158 192,719,996Taxation - net 1,382,534 1,233,913Other receivables 16 286,786,457 287,105,542Cash and bank balances 17 7,592,686 6,591,640

1,571,057,355 1,569,572,444Assets Held For Sale 280,000,000 280,000,000TOTAL ASSETS 4,400,056,233 4,396,160,117

EQUITY AND LIABILITIESShare capital and reservesAuthorized Share Capital 18 2,200,000,000 2,200,000,000Share capital 18 1,383,982,139 1,383,982,139Reserves 19 (2,468,686,609) (2,469,970,886)Long term financing-subordinated loan 20 129,238,590 129,238,590Loan From Related Party 21 2,490,547,689 2,490,547,689

1,535,081,812 1,533,797,532Non-current liabilitiesLong term financing-others 22 20,952,780 20,952,780Long term morabaha 23 - -Liabilities against assets subject to finance lease 24 456,837 604,415Long term certificates of investment 25 219,262,389 221,062,389Deferred liabilities 26 8,053,270 8,053,270Long term deposits 27 105,163,490 88,467,647

353,888,766 339,140,501Current liabilitiesShort term borrowings 28 39,413,532 39,413,532Short term certificates of investment 29 465,970,519 465,970,519Current maturities of non current liabilities 30 1,305,974,991 1,305,974,991Mark-up accrued 31 168,270,073 168,270,073Trade and other payables 32 62,358,232 71,494,661Total current liabilities 2,041,987,347 2,051,123,776

2,395,876,113 2,390,264,277Liabilities against assets classified held for sale 469,098,308 472,098,308CONTINGENCIES AND COMMITMENTS - -

4,400,056,233 4,396,160,117

The annexed notes from 1 to 35 form an integral part of these condensed interim consolidated financial information.

AS AT SEPTEMBER 30, 2017Un-audited

September 30,2017

Rupees

AuditedJune 30,

2017RupeesNote

CONDENSED INTERIM CONSOLIDATED BALANCE SHEET (un-audited)




Income

Income from lease operations - -Income from investments 52,996 83,488Income from term loans 7,582,800 3,505,707Commission Income 3,714,176 3,435,003

11,349,972 7,024,198

Finance cost 54,647 355,58711,295,325 6,668,611

Administrative and operating expenses 10,011,047 11,727,5041,284,278 (5,058,893)

Other income - 5,583,8071,284,278 524,914

Other operating expenses - -(Loss) / profit before provisions and taxation 1,284,278 524,914

Provision (reversed) / charged against lease and term loan - -Impairment charged in the value of investment - -

- -Profit before taxation 1,284,278 524,914

Provision for taxation - -Net profit for the year 1,284,278 524,914

Earnings per share - basic 0.01 0.01

Earnings per share - diluted 0.01 0.01



CONDENSED INTERIM CONSOLIDATED PROFIT AND LOSS ACCOUNT (un-audited)


2017Rupees


2016Rupees






Net profit for the year 1,284,278 524,914

Other comprehensive income / (loss)

Items that may be reclassified subsequently to profit and loss account

- Unrealized gain/ (loss) on remeasurement of available for sale investments - -

- Gain during the year transferred to profit and loss account on derecognition of available for sale investment

Items not to be reclassified to profit and loss account in subsequent periods

- Remeasurement of defined benefit liability - -

Total comprehensive income for the year 1,284,278 524,914




2017Rupees


2016Rupees

CONDENSED INTERIM CONSOLIDATED STATEMENT OFCOMPREHENSIVE INCOME (un-audited)





CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS (un-audited)

CASH FLOWS FROM OPERATING ACTIVITIESProfit before taxation 1,284,278 524,914

Adjustments for non cash / non operating items:Depreciation and amortization 798,705 727,660Provision for staff service cost - -Provision (reversed) / charged against lease and term loan - -Lease receivables written off - -Finance cost 54,647 355,668Profit / (loss) on disposal of fixed assets - 2,159,954Profit on settlement - -Impairment charged in the value of investment - -

853,352 3,243,282Operating (loss) / profit before working capital changes 2,137,630 3,768,196

Changes in operating assets and liabilities:(Increase) / decrease in assets:

Long term loans and advances - -Net investment in lease finance 4,975,121 4,990,665Long term deposits (3,000,000) -Short term loans and advances (5,850,058) (977,020)Short term placements (1,000,000) (5,000,000)Short term prepayments (110,382) (2,067,127)Mark-up accrued (183,162) (1,983,945)Other receivables 319,085 926,406

(4,849,396) (4,111,021)Increase / (decrease) in liabilities:

Certificates of investment (4,800,000) (4,600,000)Trade and other payables 8,741,643 (9,441,562)Long term deposits 0 11,649,993

3,941,643 (2,391,569(907,753) (6,502,590)

Cash (used in) / generated from operations 1,229,877 (2,734,394

Finance cost paid - -Taxes paid - -Staff service cost paid - -

- -Net cash used in operating activities 1,229,877 (2,734,394)


2017Rupees


2016RupeesNote




CASH FLOWS FROM INVESTING ACTIVITIESPurchase of fixed assets (228,830) (227,064)Capital work in progress - -Long term investments - -Long term deposits - -Proceeds from disposal of: Fixed assets - -

Net cash generated from investing activities (228,830) (227,064)

CASH FLOWS FROM FINANCING ACTIVITIESLong term financing - -Dividend - -

Net cash used in financing activities - -Net (decrease) / increase in cash and cash equivalents 1,001,046 (2,961,459)Cash and cash equivalents at the beginning of the year (32,821,892) (21,798,175)Cash and cash equivalents at the end of the year 34 (31,820,846) (24,759,634)



2017Rupees


2016RupeesNote



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NOTES TO THE CONDENSED INTERIM CONSOLIDATEDFINANCIAL INFORMATION (un-audited)FOR THE QUARTER ENDED SEPTEMBER 30, 2017

1. LEGAL STATUS AND NATURE OF BUSINESS

Trust Investment Bank Limited and its subsidiary company ("the Group") comprises of holding company Trust Investment Bank Limited ("TIBL") and a wholly owned unquoted subsidiary company "Logic Management Servies (Private) Limited (LMS) formerly: Trust Capital (Private) Limited (TCPL)".

1.01. Parent company

Trust Investment Bank Limited ("the Company") was incorporated in 1992 as a public limited Company under the Companies Ordinance, 1984 (now "Companies Act, 2017") and is listed on Lahore, Karachi and Islamabad Stock Exchanges. The registered office of the Company is situated at 6th Floor, M M Tower, 28 - A / K, Gulberg II, Lahore. The Company is mainly engaged in the business of investment finance services. It is classified as a Non-Banking Finance Company (NBFC) and is regulated by the Securities and Exchange Commission of Pakistan (SECP).

1.02. Subsidiary Company

"Logic Management Servies (Private) Limited (LMS) formerly: Trust Capital (Private) Limited (TCPL)". was incorporated as a private limited company on 20 June 2008 under the Companies Ordinance, 1984 (now "Companies Act, 2017") . LMS is engaged in the business of consultancy services, portfolio management and trading in listed securities on all the three Stock Exchanges of Pakistan. The registered office of the Company is situated at 6th Floor, M M Tower, 28 - A / K, Gulberg II, Lahore. LMS is a member of the Lahore Stock Exchange Limited.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board as are notified under the Companies Ordinance, 1984 (now "Companies Act, 2017") , the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (the NBFC Rules), the Non-Banking Finance Companies and Notified Entities Regulation, 2008 (the NBFC Regulation) and the directives issued by the Securities and Exchange Commission of Pakistan (SECP). Wherever the requirements of the Companies Ordinance 1984 (now "Companies Act, 2017") , the NBFC Rules, the NBFC Regulations or the directives issued by the SECP differ with the requirements of IFRS, the requirements of the Companies Ordinance 1984 (now "Companies Act, 2017") , the NBFC Rules, the NBFC Regulation or the directives issued by the SECP shall prevail.

3. BASIS OF CONSOLIDATION

Subsidiary is fully consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date that such control ceases. The financial statements of the subsidiary is prepared for the same reporting period as the parent company, using consistent accounting policies. All intra-group balances, income and expenses, unrealised gains and losses and dividends resulting from intra-group transactions are eliminated in full.

4. BASIS OF MEASUREMENT

These financial statements have been prepared under the historical cost convention except for revaluation of certain financial instruments and property at fair value and recognition of certain employee retirement benefits at present value.

5. SIGNIFICANT ACCOUNTING POLICIES

The accounting policies applied for the preparation of this interim financial statements are same as those applied in preparation of financial statements as on 30 June 2017.



6. FIXED ASSETS

Tangible:Property, plant and equipment 528,550,138 529,120,013Capital work in progress - -

528,550,138 529,120,013

7. INTANGIBLE ASSETS-InTangible 30,737,864 30,756,784

30,737,864 30,756,784

8. INVESTMENT PROPERTY

Opening balance 1,970,571,427 1,970,571,427Addition during the year - -

1,970,571,427 1,970,571,427Disposal during the year - -

1,970,571,427 1,970,571,427

9. LONG TERM INVESTMENTS

Investment in financial instruments 40,329,060 40,329,06040,329,060 40,329,060

Less: Current portion of long term investments 12 38,873,750 38,873,7501,455,310 1,455,310

9.01. Particulars of long term investments

Long term investments-considered good 40,329,060 40,329,060Long term investments-considered doubtful - -

40,329,060 40,329,060Less: Impairment in the value of investments - -

40,329,060 40,329,060

10. LONG TERM LOANS AND ADVANCES

Secured:Employees - considered good - -Companies, organizations and individuals

Considered good 31,190,779 31,190,779Considered doubtful 2,547,805 2,547,805

33,738,584 33,738,58433,738,584 33,738,584

Un-secured:Companies, organizations and individuals - Considered doubtful 393,125,286 393,125,286

426,863,870 426,863,870Less: provision against doubtful loans 393,386,559 393,386,559

33,477,311 33,477,311Less : current maturity 12 33,477,311 33,477,311

- -




2017Rupees

AuditedJune 30,

2017RupeesNote

11. NET INVESTMENT IN LEASE FINANCE

Lease payments receivable 1,016,440,907 1,021,416,028Add: Residual value 273,917,501 273,917,501Gross investment in leases 1,290,358,408 1,295,333,529

Less: Income suspended 83,564,305 83,564,305 Provision for lease losses 272,639,521 272,639,521

356,203,826 356,203,826Net investment in lease finance 934,154,582 939,129,703Less: Current portion of net investment in lease finance 12 934,154,582 939,129,703

- -

12. CURRENT MATURITIES OF NON-CURRENT ASSETS

Long term investments 9 38,873,750 38,873,750Long term loans and advances 10 33,477,311 33,477,311Net investment in lease finance 11 934,154,582 939,129,703

1,006,505,643 1,011,480,764

13. SHORT TERM LOANS AND ADVANCES

Short term loans-secured 13.01 34,646,749 34,646,749Short term advances 39,840,235 35,504,329

74,486,984 70,151,078

13.01. Short term loans-secured

Companies, organizations and individuals Considered good 34,932,749 34,932,749 Considered doubtful - -

34,932,749 34,932,749Less: Provision against doubtful loans 286,000 286,000

34,646,749 34,646,749

14. SHORT TERM INVESTMENTS

Held to MaturityTerm Deposit Receipts (TDR) 1,000,000 -Considered doubtful:Repurchase agreement lendings (Reverse Repo) 7,022,877 7,022,877Placement with First Fidelity Leasing Modaraba 1,000,000 1,000,000

9,022,877 8,022,877Less: Provision against doubtful lending 8,022,877 8,022,877

1,000,000 -




2017Rupees

AuditedJune 30,

2017RupeesNote

15. MARK-UP ACCRUED

Mark-up accrued on:Term finance certificates and Sukuks 962,652 2,458,304Short term and long term loans 22,956,543 21,277,729Investments in lease 168,983,963 168,983,963

192,903,158 192,719,996

16. OTHER RECEIVABLES

Receivable from broker - considered doubtful 11,614,432 11,614,432Miscellaneous receivables from lessees - Considered doubtful 386,288,156 386,108,526Other receivables:Considered good 245,097,643 245,596,358Considered doubtful 4,625,524 4,625,524

249,723,167 250,221,882647,625,755 647,944,840

Less: Provision for doubtful receivables 360,839,298 360,839,298286,786,457 287,105,542

17. CASH AND BANK BALANCES

Cash in hand 940,730 404,207Cash with banks in:Current accounts 2,021,582 2,021,663Deposit accounts 4,630,374 4,165,770

6,651,956 6,187,4337,592,686 6,591,640

18. SHARE CAPITAL

Un-Audited Audited Un-Audited Audited30-September 30-June 30-September 30-June

2017 2017 2017 2017No. of shares No. of shares Authorized Rupees Rupees

150,000,000 150,000,000 Ordinary shares of Rs. 10 each 1,500,000,000 1,500,000,00070,000,000 70,000,000 Preference shares of Rs. 10 each 700,000,000 700,000,000

220,000,000 220,000,000 2,200,000,000 2,200,000,000Issued, subscribed and paid up

20,142,984 20,142,984 Ordinary shares of Rs. 10 each 201,429,840 201,429,840fully paid-up in cash

30,650,000 30,650,000 Ordinary shares of Rs. 10 each 306,500,000 306,500,000issued against preference shares

38,409,889 38,409,889 Ordinary shares of Rs. 10 each 384,098,889 384,098,889issued as bonus shares

30,682,239 30,682,239 Ordinary shares of Rs. 10 each 306,822,390 306,822,390issued against Other Than Right

18,513,102 18,513,102 Ordinary shares of Rs. 10 each 185,131,020 185,131,020issued against DividendPreference Shares

138,398,214 138,398,214 1,383,982,139 1,383,982,139




2017Rupees

AuditedJune 30,

2017Rupees

19. RESERVES

Capital reservesStatutory reserve 259,437,746 259,437,746Unrealized loss on remeasurement of available for sale investments - -

259,437,746 259,437,746

Revenue reservesGeneral reserve 61,000,000 61,000,000Accumulated loss (2,789,124,355) (2,790,408,632)

(2,728,124,355) (2,729,408,632)(2,468,686,609) (2,469,970,886)

20. LONG TERM FINANCING - SUBORDINATED LOAN

Long term financing-subordinated loan 20.01 129,238,590 129,238,590

20.01. Particulars of subordinated loan

Loan from:Director-Asif Kamal 99,810,000 99,810,000Director-Asad Kazmi 29,428,590 29,428,590

129,238,590 129,238,590

21. LOAN FROM RELATED PARTIES

Loan from:Director-Asif Kamal 523,026,262 523,026,262Director-Asad Kazmi 1,967,521,427 1,967,521,427

2,490,547,689 2,490,547,689

22. LONG TERM FINANCING - OTHERS

Banking companies and other financial institutions-Secured 744,997,832 744,997,832Banking companies and other financial institutions-Unsecured 13,751,959 13,751,959Term finance certificates (TFC)-Secured 171,449,518 171,449,518


20,952,780 20,952,780

23. LONG TERM MORABAHA

Long term morabaha 15,500,000 15,500,000Less: Current portion shown under current liabilities 30 15,500,000 15,500,000

- -

24. LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE

Present Value of of minimum lease payments 1,083,999 1,231,577Less: Current portion 30 627,162 627,162

456,837 604,415




2017Rupees

AuditedJune 30,

2017RupeesNote

25. LONG TERM CERTIFICATES OF INVESTMENT

- Corporate Secured 22,371,263 22,371,263 Unsecured 228,445,994 230,245,994


219,262,389 221,062,389

26. DEFERED LIABILITIES

Gratuity 7,012,782 7,012,782Leave encashment 1,040,488 1,040,488

8,053,270 8,053,270

27. LONG TERM DEPOSITS

Margin against letters of guarantee 180,801,961 164,106,118Less: Current portion shown under current liabilities 30 75,638,471 75,638,471

105,163,490 88,467,647

Deposits against lease arrangements 273,407,961 273,407,961Less: Current portion shown under current liabilities 30 273,407,961 273,407,961

- -105,163,490 88,467,647

28. SHORT TERM BORROWINGS

Banking companies and other financial institutions:

Running finances - secured 39,413,532 39,413,532

29. SHORT TERM CERTIFICATES OF INVESTMENT

- Financial institutions 2,350,006 2,350,006 - Corporate 463,620,513 463,620,513 - Individuals - -

465,970,519 465,970,519

30. CURRENT MATURITIES OF NON CURRENT LIABILITIES

Long term financing - others 22 909,246,529 909,246,529Liabilities against assets subject to finance lease 24 627,162 627,162Long term morabaha 23 15,500,000 15,500,000Certificates of investment 25 31,554,868 31,554,868Long term deposits 27 349,046,432 349,046,432

1,305,974,991 1,305,974,991




2017Rupees

AuditedJune 30,

2017RupeesNote

31. MARK-UP ACCRUED

Secured - Short and long term financing 67,490,905 67,490,905 - Term finance certificates 12,833,632 12,833,632

- -80,324,537 80,324,537

Unsecured - Certificates of investment 87,945,536 87,945,536

168,270,073 168,270,073

32. TRADE AND OTHER PAYABLES

Unclaimed dividend 3,092,624 3,092,624Accrued liabilities 10,714,317 18,355,608Other liabilities 48,551,291 50,046,429

62,358,232 71,494,661

33. EARNING PER SHARE BASIC AND DILUTED



Earning per share - basic 0.01 0.01



Earning per share - diluted 0.01 0.01

34. CASH AND CASH EQUIVALENTS

Cash and Bank Balances 7,592,686 6,591,640Short term running finance (39,413,532) (39,413,532)

(31,820,846) (32,821,892)

35. DATE OF AUTHORIZATION

These condensed interim financial information were authorized for issue on October 31, 2017 by the Board of Directors.





2017Rupees

AuditedJune 30,

2017Rupees

Head Office:6th Floor, M.M. Tower, 28-A/K, Gulberg II, Lahore, Pakistan.Tel: +92-42-3581 7601-5 Fax: +92-42-3581 7600Email: [email protected] Website: www.trustbank.com.pk

1st quarter report 2017 - trust investment bank …mr. asad ali kazmie member human resource and...

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