for the period ended december 31, 2015

TRUST INVESTMENT BANK Trust InvestmentBank Limited

Half Yearly Report (un-audited)For the period ended December 31,

2015

TRUST INVESTMENT BANK TRUST INVESTMENT BANK LIMITED

FOR THE HALF YEAR ENDED DECEMBER 31, 2015

TRUST INVESTMENT BANKTRUST INVESTMENT BANK LIMITED


Company Information

Directors Report To Share Holders

Auditors' Report To The Members On Review Of Condensed Interim Financial Information

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 Cash Flows (un- audited)

Condensed Interim Statement Of Comprehensive Income (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 Cash Flows (un-audited)

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

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

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

01

02

03

04

05

06

07

08

09

10

11

12

13

14

15

16

17

03

04

05

06

07

08

09

10

11

12

25

26

27

28

30

31

32

CONTENTS


03

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 CommitteeSyed Sajjad Hussain Rizvi ChairmanMr. Abdul Shakeel MemberMr. Mamoon-ur-Rashid Qureishi Member

HR CommitteeSyed Sajjad Hussain Rizvi ChairmanMr. Ahsan Rafique MemberMr. Mamoon-ur-Rashid Qureshi Member

Company SecretaryZahra Khalid

Chief Financial Officer Zahra Khalid

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

COMPANY INFORMATION


On behalf of the Board of Directors, I am pleased to submit the Un-Audited Condensed Interim Standalone and Consolidated Financial Information of Trust Investment Bank Limited for the half year ended, December 31, 2015. The summarized financial results for the second quarter ended December 31, 2015 are as under:

Financial Highlights:

Revenue 13.81 26.99 13.81 26.99

Operating Expenses 0.74 13.62 0.74 13.62

Other Income 21.36 3.95 21.36 4.17

Profit / (Loss) before provision & taxation 0.55 (21.51) 0.42 (21.81)

Profit / (Loss) after taxation 0.28 9.53 0.28 9.53

Earnings / (Loss) per Share 0.00 0.14 0.00 0.14

Performance Review:

Financial year 2015 was the year in which Board and management took tough decisions to drive a turnaround in performance by tackling barriers. The Board strongly supports the renewed strategic road map and look forward to sustain long term growth.

The Board of directors and management has critically analyzed the present situation and are making efforts to improve the revenue stream, efficiency and optimal utilization of resources, expedite recoverability of receivables and reduce expenses. The results of the efforts are encouraging as is evident from the fact that the TIBL has managed to improve its profit / (loss) before provision & taxation for the quarter which have been increased from 0.34 million to 0.55 million during the current quarter.

During the year, TDL shares has been derecognized as subordinated loan, however, shares are still in TIBL possession until the formal approval from SECP.

Audit Committee:

The internal control framework has been effectively implemented through an independent in-house Internal Audit function established by the Board. The Audit Committee has ensured the achievement of operational, compliance and financial reporting objectives, safeguarding of the assets of the Bank. 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 Board places on record its gratitude for the hard work and dedication of employees of the company. The board also appreciates and acknowledges the assistance, guidance and cooperation of all stakeholders, valuable customers and shareholders for entrusting their confidence in the Bank which give strength to face the challenging times. The Board is confident that with the persistent cooperation by the SECP and committed efforts of the employees, the Bank shall be able to pursue its corporate objectives with renewed vigor.

For and on behalf of the Board of Directors

Lahore Ahsan RafiqueDecember 31, 2015 Chief Executive Officer


04

DIRECTORS' REPORT TO SHARE HOLDERS


Standalone December 31

(Rupees in millions)

Consolidated December 31

2015 2014(Rupees in millions)

2015 2014Particulars


05FOR THE HALF YEAR ENDED DECEMBER 31, 2015

Introduction

We have reviewed the accompanying condensed interim balance sheet of TRUST INVESTMENT BANK LIMITED as at 31 December 2015 and the related condensed interim profit and loss account, condensed interim statement of comprehensive income, condensed interim cash flow statement and condensed interim statement of changes in equity together with the notes forming part thereof (here-in-after referred to as the “interim financial information”), for the half year then ended. Management is responsible for the preparation and presentation of this interim financial information in accordance with approved accounting standards as applicable in Pakistan. Our responsibility is to express a conclusion on this interim financial information based on our review. The figures of the interim condensed profit and loss account for the quarters ended 31 December 2015 and 2014 have not been reviewed, as we are required to review only the cumulative figures for the half year ended 31 December 2015.

Scope of Review

Except as explained in the paragraph “a” below, we conducted our review in accordance with the International Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. A review of the interim financial information consists of making inquiries, primarily of persons responsible for the financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Adverse Conclusion

a) As described in note 1.01.2 to the condensed interim financial information, the financial information has been prepared on going concern basis. As at balance sheet date, the Company has accumulated losses amounting to Rs. 2,780.747 million (30 June 2015: Rs. 2,781.029 million), shareholder's equity is negative by Rs. 1,601.201 million (30 June 2015: Rs. 1,602.028 million), its current liabilities exceed its current assets by Rs. 1,741.703 million (30 June 2015: Rs. 1,699.816 million) and overdue installments of financing from banking companies and financial institutions and term finance certificates (TFC) are amounting to Rs. 1,139.159 million (30 June 2015: Rs. 1,141.696 million). The company is facing operational and financial crisis. Moreover, as mentioned in note of contingencies to the financial information, the company is defendant / petitioner in various law suits and the company has not charged markup amounting to Rs. 985.304 million on various financings / investments due to pending litigations. Had the markup amount been provided in the financial information, profit for the period would have been decreased by Rs. 95.855 million, markup payable and accumulated losses would have been increased by Rs. 985.304 million. The Securities and Exchange Commission of Pakistan (SECP) has not yet renewed company's license to operate Investment Finance Services (IFS) and also suspended the permission for raising deposits in any form and PACRA has withdrawn long term and short term rating of the company since 19 November 2012. These factors indicate a material uncertainty which may cast significant doubt on the company's ability to continue as a going concern and therefore it may be unable to realize its assets and discharge its liabilities in normal course of business. The condensed interim financial information, however, do not disclose this fact and any adjustment to that effect;

Adverse Conclusion

Based on our review, on the basis of above mentioned paragraph “a”, it causes us to believe that the accompanying interim financial information is not prepared, in all material respects, in accordance with approved accounting standards as applicable in Pakistan.

Lahore Tariq Abdul Ghani Maqbool and Co.Dated: 26 February 2016 Chartered Accountants

Shahid Mehmood

AUDITORS' REPORT TO THE MEMBERSON REVIEW OF CONDENSED INTERIM FINANCIAL INFORMATION


06

Trust Investment Bank Limited

Half Yearly Report (un-audited)

For the half year ended December 31, 2015

Condensed InterimStandalone Financial Information



07

ASSETSNon-current assetsFixed assets 5 2,909,887,754 2,956,326,178Long term investments 6 26,478,441 29,716,958Long term loans and advances 7 16,761,660 16,761,654Net investment in lease finance 8 - - Long term deposits 3,338,001 3,611,550

2,956,465,856 3,006,416,340

Current assets Current maturities of non - current assets 9 1,013,237,400 1,059,226,136Short term loans and advances 10 63,364,044 46,520,641Short term placements 11 6,000,000 11,000,000Short term prepayments 3,079,471 2,972,914Mark-up accrued 191,749,149 190,948,268Taxation - net 960,904 1,045,388Other receivables 12 154,507,462 154,546,031Cash and bank balances 13 4,441,168 6,396,174

1,437,339,598 1,472,655,5524,393,805,454 4,479,071,892

EQUITY AND LIABILITIESShare capital and reservesShare capital 892,028,729 892,028,729Reserves (2,493,229,397) (2,494,056,346)

(1,601,200,668) (1,602,027,617)

Surplus on revaluation of property, plant and equipment 18,511,500 18,511,500

Non-current liabilitiesLong term financing-subordinated loan 14 2,788,220,472 2,788,220,472Long term financing-others 15 - 57,624,657Long term morabaha 16 - - Long term certificates of investment 17 1,562,500 1,562,500Deferred liabilities 5,351,517 7,471,687Long term deposits 18 2,317,350 35,237,224

2,797,451,839 2,890,116,540

Current liabilitiesShort term borrowings 19 39,413,532 39,413,532Short term certificates of investment 20 983,543,213 1,036,976,463Current maturities of non current liabilities 21 1,741,545,102 1,663,119,562Mark-up accrued 253,900,180 259,273,170Trade and other payables 22 160,640,756 173,688,742

3,179,042,783 3,172,471,469Contingencies and commitments 23 - -

4,393,805,454 4,479,071,892

The annexed notes from 01 to 33 form an integral part of these condensed interim financial information.

CONDENSED INTERIM BALANCE SHEET (un-auditd)AS AT DECEMBER 31, 2015

CHIEF EXECUTIVE DIRECTOR

Un-auditedDecember 31,

2015Rupees

Re-statedAuditedJune 30,

2015RupeesNote



08

Income

Income from lease operations 183,757 3,878,959 59,217 352,323Income from investments 297,697 240,214 152,466 144,525Income from term loans 13,331,623 22,869,385 4,964,198 10,279,126

13,813,077 26,988,558 5,175,881 10,775,974Finance cost 712,668 1,736,228 22,287 856,440

13,100,409 25,252,330 5,153,594 9,919,534Administrative and operating expenses 33,166,690 37,099,240 18,645,534 17,282,600

(20,066,281) (11,846,910) (13,491,940) (7,363,066)Other income 21,359,900 3,950,529 14,334,722 1,746,509

1,293,619 (7,896,381) 842,782 (5,616,557)Other operating expenses 739,163 13,617,298 625,038 4,405,575Profit/(loss) before provisions and taxation 554,456 (21,513,679) 217,744 (10,022,132)Provision reversed against lease and term loan - 33,919,819 - 33,919,819Impairment charged in the value of investment 133,606 1,935,723 62,251 1,935,723

133,606 31,984,096 62,251 31,984,096Profit before taxation 420,850 10,470,417 155,493 21,961,964Taxation 24 138,131 942,338 138,131 942,338Profit after taxation for the period 282,719 9,528,079 17,362 21,019,626

Earnings per share - basic 25 0.00 0.14 0.00 0.30

Earnings per share - diluted 25 0.00 0.12 0.00 0.26




CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (un-audited)


Half year endedDecember 31,

Note2015

Rupees2014

Rupees2014

Rupees2015

Rupees

Quarter endedDecember 31,



09

CASH FLOWS FROM OPERATING ACTIVITIESProfit before taxation 420,850 10,470,417

Adjustments for non cash / non operating items:Depreciation and amortization 1,282,561 3,051,110Provision (reversed) / charged against lease and term loan - (33,919,819)Provision for staff retirement benefits 488,863 - Lease receivables written off 739,163 13,617,298Finance cost 712,668 1,736,228Profit on settlement (142,454) -Profit on disposal of fixed assets (4,269,627) - Impairment charged in the value of investment 133,606 1,935,723

(1,055,220) (13,579,460)Operating profit / (loss) before working capital changes (634,370) (3,109,043)

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

Long term loans and advances 451,203 (3,158,969)Net investment in lease finance 46,749,017 39,750,193Long term deposits 273,549 (4,098,735)Short term loans and advances (16,843,403) (7,342,294)Short term placements 5,000,000 3,000,000Short term prepayments (106,557) (128,082)Mark-up accrued (800,881) (2,367,724)Other receivables 38,569 (24,420,847)

34,761,497 1,233,542Increase / (decrease) in liabilities:

Certificates of investment (54,519,335) (4,703,593)Trade and other payables (13,047,986) 3,195,385Long term deposits (8,682,050) -

(76,249,371) (1,508,208)Cash (used in) / generated from operations (42,122,244) (3,383,709)

Finance cost paid (6,085,658) (1,736,228)Taxes paid (53,647) (122,543)Staff service cost paid (2,609,033) (460,000)

(8,748,338) (2,318,771)Net cash used in operating activities (50,870,582) (5,702,480)

CASH FLOWS FROM INVESTING ACTIVITIESPurchase of fixed assets (12,125,100) (303,426)Capital work in progress 56,571,428 -Long term investment 2,027,027 - Long term deposits - (200,240)Proceeds from disposal of:

Fixed assets 4,979,162 - Net cash generated from investing activities 51,452,517 (503,666)

CASH FLOWS FROM FINANCING ACTIVITIESLong term financing (2,536,941) - Net cash used in financing activities (2,536,941) - Net decrease in cash and cash equivalents (1,955,006) (6,206,146)Cash and cash equivalents at the beginning of the period/year (33,017,358) (30,561,267)Cash and cash equivalents at the end of the period/year (34,972,364) (36,767,413)


CONDENSED INTERIM STATEMENT OF CASH FLOWS (un- audited)


FOR THE HALF YEAR ENDED DECEMBER 31, 2015 Un-auditedDecember 31,

2015Rupees


2014Rupees



10

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (un-audited)



Net profit for the period 282,719 9,528,079 17,362 21,019,626

Other comprehensive income:

Items that may be reclassifiedsubsequently to profit and loss account

- Unrealized gain on remeasurementof available for sale investments 544,230 - - -

Total comprehensive incomefor the period 826,949 9,528,079 17,362 21,019,626


2015Rupees

2014Rupees

2014Rupees

2015Rupees





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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 subsidiary company Trust Capital (Private) Limited ("TCPL).

1.01 Parent company

1.01.1 Trust Investment Bank Limited ("the Company") was incorporated in 1992 as a public limited Company under the Companies Ordinance, 1984 and is listed on Pakistan Stock Exchange Limited. 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).

1.01.2 The accumulated losses of the company amounts to Rs. 2,780.747/- million as at balance sheet date. The company has paid renewal fee for Investment Finance Services (IFS) license, however, the Securities & Exchange Commission of Pakistan (SECP) has not yet renewed company’s license to operate Investment Finance Services (IFS) and also suspended the permission for raising deposits in any form. Moreover, the Pakistan Credit Rating Agency Limited (PACRA) has withdrawn the long-term (previously "D") and short-term (previously "D") credit rating since 19 November 2012 on the management's request. These conditions indicate the existence of a material uncertainty regarding the future operations of the company. During the period, the company has successfully negotiated settlement with major depositors through cash / properties and negotiations with financial institutions are in process. The preference shares amounting to Rs. 80.750 million have been converted into ordinary shares. The company has generated some liquidity through expediting recovery process and disposal of its assets. To sustain liquidity position, the company has started new business that has brought new income stream in current operations. With all these measures in place and expected cash injection from directors and financial institutions in coming months, the liquidity position will be strengthened. Based on above and the financial projections as prepared by the company for future periods, the management is confident that the company shall continue and further improve its business growth during the coming years resulting in improvement of its profitability. Hence these financial statements have been prepared on going concern basis.

1.02 Subsidiary Company

1.02.1 Trust Capital (Private) Limited was incorporated as a private limited company on 20 June 2008 under the Companies Ordinance, 1984. TCPL is engaged in the business of stock brokerage, portfolio management and trading in listed securities on Pakistan Stock Exchange Limited.

2 BASIS OF PRESENTATION AND MEASUREMENT

2.01 This condensed interim financial information is un-audited but subject to limited scope review by auditors and have been prepared in accordance with the requirements of the approved Accounting Standards as applicable in Pakistan relating to Interim Financial Reporting. This condensed interim financial information does not include all the information required for full annual financial statements, and should be read in conjunction with the financial statements of the Company for the year ended 30 June 2015.

2.02 This condensed interim financial information has been prepared in accordance with the requirements of the International Accounting Standard (IAS) - 34 "Interim Financial Reporting" as applicable in Pakistan and submitted to the shareholders in accordance with Section 245 of the Companies Ordinance, 1984 and the Listing Regulations of Pakistan Stock Exchange Limited.

The disclosures made in this condensed interim financial information have, however, been limited based on the requirements of International Accounting Standard (IAS) - 34. These do not include all the information and


12

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



disclosures made in the annual published financial statements and therefore should be read in conjunction with the financial statements of the company for the year ended 30 June 2015.

2.03 The classifications and provisioning requirements against non-performing assets have been considered in accordance with the applicable requirements of the Non-Banking Finance Companies and Noticed Entities Regulations, 2008.

3 SIGNIFICANT ACCOUNTING POLICIES

The accounting policies applied for the preparation of this interim financial information are the same as those applied in preparation of the annual audited financial statements of the Company for the year ended 30 June 2015. However, the management of the Bank suspended the accrual of Financial charges on Borrowings, Preference shares and Certificate of Investments (COIs) etc. from July 2012.

3.01 Changes in accounting standards and interpretations

a) Standards, interpretations and amendments to published approved accounting standards that are effective and relevant

Following amendments to existing standards and interpretations have been published and are mandatory for accounting periods beginning on or after 01 January 2015 and are considered to be relevant to the Company's operations.

IFRS 10 ‘Consolidated Financial Statements’, IFRS 12 ‘Disclosure of Interests in Other Entities’ and IFRS 13 ‘Fair Value Measurements’. These standards became applicable from 1 January 2015, as per the adoption status of IFRS in Pakistan.

IFRS 10 replaces the current guidance on consolidation in IAS 27 ‘Consolidated and Separate Financial Statements’. It introduces a single model of assessing control whereby an investor controls an investee when it has the power, exposure to variable return and the ability to use its power to influence the returns of the investee. IFRS 10 also includes specific guidance on de facto control, protective rights and the determination of whether a decision maker is acting as principal or agent, all of which influence the assessment of control. The application of IFRS 10 did not result in any investee being in control of the Company.

IFRS 12 prescribes additional disclosures around significant judgments and assumptions made in determining whether an entity controls another entity and has joint control or significant influence over another entity. The standard also requires disclosure on the nature and risks associated with interests in unconsolidated structured entities. The application of IFRS 12 did not result in any investee being in control of the Company.

IFRS 13 ‘Fair Value Measurement’, consolidates the guidance on how to measure fair value, which was spread across various IFRS, into one comprehensive standard. It introduces the use of an exit price, as well as extensive disclosure requirements, particularly the inclusion of non-financial instruments into the fair value hierarchy. The application of IFRS 13 does not have an impact on the condensed interim financial information of the Company.

b) Standards, interpretations and amendments to published approved accounting standards that are effective but not relevant

There are certain new standards, amendments to the approved accounting standards and new interpretations that are mandatory for accounting periods beginning on or after 01 January 2015, but are considered not to be relevant or have any significant effect on the Company's reporting and are therefore, not disclosed in this condensed interim financial information.



4 ESTIMATES AND JUDGEMENTS

The preparation of condensed interim financial information requires management to make judgments, estimates and assumption that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. The significant judgments made by management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those that were applied to the financial statements for the year ended 30 June 2015.

5 FIXED ASSETS

Tangible: Property, plant and equipment 5.01 843,474,732 833,341,728Capital work in progress 5.02 2,066,413,022 2,122,984,450

2,909,887,754 2,956,326,178

5.01 Property, plant and equipmentOpening book value 833,341,728 561,367,003

Add: Additions during the period / year 5.01.1 12,125,100 363,588,266845,466,828 924,955,269

Less: Deletions during the period / year 5.01.2 (3,082,305) (95,590,514)842,384,523 829,364,755

Less: Depreciation during the period / year (1,282,561) (5,228,869)841,101,962 824,135,886

Add: Depreciation adjustments for assets sold during the period / year 2,372,770 9,205,842Book value at the end of the period / year 5.01.3 843,474,732 833,341,728

5.01.1 Additions during the period / year Land 11,866,400 362,873,360Office equipment and machines 211,200 525,706Furniture and fixtures - 189,200Vehicles 47,500 -

12,125,100 363,588,266

5.01.2 Deletions during the period / year Land - 25,578,733Building on freehold land - 70,000,000Office equipment and machines 1,649,414 -Furniture and fixtures 1,164,651 11,781Air-conditioning equipment 268,240 -

3,082,305 95,590,514

5.01.3 Book value at the end of period / yearLand 831,834,360 819,967,960Lease hold improvements 2,798,384 3,109,315Office equipment and machines 3,276,814 3,648,077Furniture and fixtures 3,474,920 4,105,092Air-conditioning equipment 202,522 286,494Vehicles 1,887,732 2,224,790

843,474,732 833,341,728


14 FOR THE HALF YEAR ENDED DECEMBER 31, 2015


2015Rupees

AuditedJune 30,

2015RupeesNote

5.02 Capital work in progress

Opening balance 2,122,984,450 900,907,190Additions - 2,001,833,050

2,122,984,450 2,902,740,240Disposal / Transfer (56,571,428) (779,755,790)Closing balance 2,066,413,022 2,122,984,450

6 LONG TERM INVESTMENTS

Investment in subsidiary-at cost 60,000,000 60,000,000Investment in financial instruments 71,873,320 82,953,550

131,873,320 142,953,550Less: Impairment in the value of investments 79,739,929 88,793,132

52,133,391 54,160,418Less: Current portion of long term investments 9 25,654,950 24,443,460

26,478,441 29,716,958

7 LONG TERM LOANS AND ADVANCES

Secured: Employees - considered good 62,957 464,159 Companies, organizations and individuals

Considered good 28,693,827 28,743,828Considered doubtful 7,047,805 7,047,805

35,741,632 35,791,63335,804,589 36,255,792

Un-secured: Companies, organizations and individuals - Considered doubtful 397,838,899 397,838,899

433,643,488 434,094,691 Less: provision against doubtful loans 7.01 396,594,364 396,594,364

37,049,124 37,500,327 Less : current maturity 9 20,287,464 20,738,673

16,761,660 16,761,654

7.01 Provision against doubtful loans

Opening balance 396,594,364 403,653,029Charge for the period/year - 44,099Reversal during the period/year - (7,102,764)Closing balance 396,594,364 396,594,364




2015Rupees

AuditedJune 30,

2015RupeesNote

8 NET INVESTMENT IN LEASE FINANCE

Lease payments receivable 1,088,328,647 1,126,251,228Add: Residual value 284,703,586 293,558,161Gross investment in leases 1,373,032,233 1,419,809,389

Less: Unearned finance income 811,669 839,808 Income suspended 129,584,710 129,584,710 Provision for lease losses 275,340,868 275,340,868

405,737,247 405,765,386Net investment in lease finance 967,294,986 1,014,044,003Less: Current portion of net investment in lease finance 9 967,294,986 1,014,044,003

- -

9 CURRENT MATURITIES OF NON-CURRENT ASSETS

Long term investments 6 25,654,950 24,443,460Long term loans and advances 7 20,287,464 20,738,673Net investment in lease finance 8 967,294,986 1,014,044,003

1,013,237,400 1,059,226,136

10 SHORT TERM LOANS AND ADVANCES

Short term loans-secured 10.01 36,823,126 31,460,541Short term advances 26,540,918 15,060,100

63,364,044 46,520,641

10.01 Short term loans-secured

Companies, organizations and individualsConsidered good 36,289,524 30,926,939Considered doubtful 1,302,541 1,302,541

37,592,065 32,229,480Less: Provision against doubtful loans 768,939 768,939

36,823,126 31,460,541

11 SHORT TERM PLACEMENTS

Repurchase agreement lendings (Reverse Repo) 7,022,877 7,022,877Placement with First Fidelity Leasing Modaraba 1,000,000 1,000,000Term deposit receipt (TDR) 5,000,000 10,000,000

13,022,877 18,022,877Less: Provision against doubtful lending 7,022,877 7,022,877

6,000,000 11,000,000




2015Rupees

AuditedJune 30,

2015RupeesNote


2015Rupees

AuditedJune 30,

2015RupeesNote

12 OTHER RECEIVABLES

Receivable from broker - considered doubtful 13,614,432 14,614,432Miscellaneous receivables from lessees - Considered doubtful 12.01 387,611,778 380,501,827Other receivables: - Considered good 12.02 121,766,082 128,013,442 - Considered doubtful 12.03 4,724,364 4,625,524

126,490,446 132,638,966527,716,656 527,755,225

Less: Provision for doubtful receivables 12.04 373,209,194 373,209,194154,507,462 154,546,031

12.01 This represents insurance and other miscellaneous charges receivable from lessees, in respect of vehicles insured by the bank against assets leased to them.

12.02 This includes receivables from Trust Capital (Private) Limited amounting to 49.7 million (30 June 2015: Rs. 49.7 million).

12.03 This includes receivables from Trust Management (Private) Limited amounting to Rs. 3.920 million (30 June 2015: Rs. 3.920 million).

12.04 Movement of provisions for doubtful receivable

Opening balance 373,209,194 344,638,816Charged for the year - 80,767,848

373,209,194 425,406,664Written off during the period/year - (16,420,412)Reversed during the period/year - (35,777,058)Closing balance 373,209,194 373,209,194

13 CASH AND BANK BALANCES

Cash in hand 420,550 429,766Cash with banks in: - Current accounts 244,194 244,194 - Deposit accounts 3,776,424 5,722,214

4,020,618 5,966,4084,441,168 6,396,174

14 LONG TERM FINANCING - SUBORDINATED LOAN

Long term financing-subordinated loan 14.01 2,788,220,472 2,788,220,472

14.01 Particulars of subordinated loan

Loan from:Director-Asif Kamal 14.02 716,350,637 716,350,637Director-Mamoon -ur- Rasheed 14.03 74,919,835 74,919,835Director-Asad Kazmi 14.04 1,996,950,000 1,996,950,000

2,788,220,472 2,788,220,472




2015Rupees


2015RupeesNote

14.02 This represents properties amounting to Rs. 342.073 million and Rs. 150 million of Muhammad Akram and Muhammad Fiaz, respectively, injected for equity participation in favor of Mr. Asif Kamal through equity participation agreement. It also includes TIBL obligation to Tricon Developers Limited for cash component of subordinated loan i.e. Rs. 100 Million through agreement in favor of Mr. Asif Kamal. Further, property amounting to Rs. 124.277 million from Mr. Asif Kamal had been injected on 30 June 2014. All the properties have been duly transferred in the name of the company.

14.03 Properties amounting to Rs. 258.675 million of Mrs. Samina Khurram had been injected for equity participation in favor of Mr. Mamoon Ur Rasheed through equity participation agreement. The company will pay 20% of the agreed price in cash and balance 80% in the form of issuance / transfer of shares at par, in favour of legal owners, subject to approval of SECP. However, title of properties amounting to Rs. 183.756 million could not be transferred in the name of TIBL, so these properties have been derecognised during the year. Remaining properties have been duly transferred in the name of the company.

14.04 This represents subordinated loan acquired against land from Mr. Khizer Hayat for equity participation in favor of Mr. Asad Kazmi through equity participation agreement. As per the terms of the agreement TIBL will pay an amount of Rs. 50 million as an initial payment and balance in the form of issuance / transfer of shares of Trust Investment Bank Limited at par, subject to approval of SECP. Title of this property has been transferred in the name of the company through court order.

15 LONG TERM FINANCING - OTHERS

Banking companies and other financial institutions-Secured 15.01 - 57,624,657Banking companies and other financial institutions-Unsecured 15.02 - -Term finance certificates (TFC)-Secured 15.03 - -

- 57,624,657

15.01 Banking companies and other financial institutions-Secured

Banking companies and other financial institutions 875,822,832 878,359,773Less: Current portion shown under current liabilities 21 875,822,832 820,735,116

- 57,624,657

15.02 Banking companies and other financial institutions-Unsecured


- -

15.03 Term finance certificates (TFC)-Secured

TFC III 230,583,980 230,583,980Less: Current portion shown under current liabilities 21 230,583,980 230,583,980

- -




2015Rupees

AuditedJune 30,

2015RupeesNote

16 LONG TERM MORABAHA

Long term morabaha 15,500,000 15,500,000Less: Current portion shown under current liabilities 21 15,500,000 15,500,000

- -

17 LONG TERM CERTIFICATES OF INVESTMENT

- CorporateSecured 22,371,263 22,371,263Unsecured 162,395,179 163,295,179

184,766,442 185,666,442Less: Current portion shown under current liabilities 21 183,203,942 184,103,942

1,562,500 1,562,500

18 LONG TERM DEPOSITS

Margin against letters of guarantee 137,348,745 137,176,220Less: Current portion shown under current liabilities 21 135,031,395 101,938,996

2,317,350 35,237,224

Deposits against lease arrangements 284,150,994 293,005,569Less: Current portion shown under current liabilities 21 284,150,994 293,005,569

- -2,317,350 35,237,224

19 SHORT TERM BORROWINGS

Banking companies and other financial institutions:Running finances - secured 39,413,532 39,413,532

20 SHORT TERM CERTIFICATES OF INVESTMENT

- Financial institutions 10,350,006 10,350,006 - Corporate 951,042,392 1,003,875,642 - Individuals 22,150,815 22,750,815

983,543,213 1,036,976,463

20.01 These represent unsecured short term certificates of investment for a period of one months to one year. These carry mark-up rate ranging from 0% to 18.75% (30 June 2015: 0% to 18.75%) per annum.

21 CURRENT MATURITIES OF NON CURRENT LIABILITIES

Long term financing from banking companies and financial institutions

- Secured 15.01 875,822,832 820,735,116- Unsecured 15.02 17,251,959 17,251,959

Term finance certificates-Secured 15.03 230,583,980 230,583,980Long term morabaha 16 15,500,000 15,500,000Certificates of investment 17 183,203,942 184,103,942Long term deposits 18 419,182,389 394,944,565

1,741,545,102 1,663,119,562




2015Rupees

AuditedJune 30,

2015RupeesNote

22 TRADE AND OTHER PAYABLES

Unclaimed dividend 3,092,624 3,092,624Preference dividend payable 58,023,276 58,023,278Accrued liabilities 17,162,043 16,628,162Other liabilities 82,362,813 95,944,678

160,640,756 173,688,742

23 CONTINGENCIES AND COMMITMENTS

23.01 Contingencies

(a) There is no material change in the status of contingencies as disclosed in note No. 32.1 of the financial statements for the year ended 30 June 2015 except following:

- The company has issued guanantees to various parties on behalf of clients amounting to Rs. 657.86 million (30 June 2015: Rs. 879.162 million.)

- The Company has filed recovery suits amounting to Rs. 1,439.334 million (30 June 2015: Rs. 2,195.42 million). Prima facie the Bank has good arguable cases, the financial impact of the same has been accounted for in this financial information.

- The company has not provided for mark-up of Rs. 889.449 in preceding years and Rs. 95.88 million during the period on financing from banking companies and other financial institutions, term finance certificates, preference shares, certificates of Investment, long term morabaha and on running finance in these financial statements due to pending litigations. Had the markup been provided net profit for the period would have been decreased by Rs. 95.88 million, mark up payable and accumulated losses would have been increased by Rs. 985.329 million.

23.02 Commitments

There exists no commitment as at balance sheet date.

24 PROVISION FOR TAXATION

Current taxFor the year 138,131 942,338 - 942,338Deferred - - - -

138,131 942,338 - 942,338

25 EARNINGS PER SHARE

25.01 Earnings per share - basic

Profit for the period after taxation Rs. 282,719 9,528,079 17,362 21,019,626

Weighted average number of

ordinary shares No. 76,819,540 70,436,206 76,819,540 70,436,206

Earnings per share - basic Rs. 0.00 0.14 0.00 0.30




2015Rupees

AuditedJune 30,

2015Rupees

31 December2015

Rupees

31 December2014

Rupees

31 December2015

Rupees

31 December2014

Rupees

Half year ended Quarter ended

25.02 Earnings per share - diluted




Earnings per share - diluted Rs. 0.00 0.12 0.00 0.26

26 CASH AND EQUIVALENTS

Cash and bank balances 4,441,168 6,396,174Short term running finance (39,413,532) (39,413,532)

(34,972,364) (33,017,358)

27 TRANSACTIONS WITH RELATED PARTIES

Related parties comprise of directors, entities over which directors are able to exercise significant influence, entities with common directors, major shareholders, key management employees and employees' fund. The transactions and balances with related parties, other than those which have been disclosed in the relevant notes are disclosed as follows:

Mr. Asif KamalShare capital 71,065,510 71,065,510 71,065,510Subordinated loan 224,277,371 1,253,282,851 224,277,371

Mr. Zahid RafiqShare capital 57,024,050 57,024,050 57,024,050

Genesis Securities (Private) LimitedShare capital 122,097,420 122,097,420 122,097,420

Associated undertakings:Habib Rafiq (Private) LimitedLetter of Guarantees issued during the year 172,688,673 268,627,407 188,490,032Letter of Guarantees outstanding 353,621,490 374,745,074 360,445,074Income charged during the year 1,569,843 3,531,399 4,027,025

Subsidiary CompanyTricon Developers LimitedLong term financing - subordinated loan - 100,000,000 -

Trust Capital (Private) LimitedOutstanding loans and advances 49,711,698 53,520,725 49,700,223Outstanding TFC,s 9,371,250 9,371,250 9,371,250Mark-up payable on TFC,s (overdue more than 365 days) 1,986,254 1,986,254 1,986,254



31 December2015

Rupees

31 December2014

Rupees

31 December2015

Rupees

31 December2014

Rupees



2015Rupees

AuditedJune 30,

2015Rupees

2014Rupees

Year ended30 June

2015Rupees

2015Rupees

Six month ended31 December

28 SEGMENT ANALYSIS

Trust investment bank activities are broadly categorized into two primary business segments namely financing activities and investing activities.

Financing activities

Financing activities include providing long-term and short term financing facilities to corporate and individual customers including lease financing.

Investment activities

Investment activities include money market activities, investment in government securities and capital market activities.

Income from lease operations 183,757 - 183,757Income from investments - 297,697 297,697Income from term loans 13,331,623 - 13,331,623Total income for reportable segments 13,515,380 297,697 13,813,077

Finance cost 37,862 674,806 712,668Administrative and operating expenses 33,166,690 - 33,166,690Lease receivables written off 739,163 - 739,163Impairment on available for sale investment - 133,606 133,606Other income 11,912,962 9,446,938 21,359,900Segment result (8,515,373) 8,936,223 420,850

Profit before taxation 420,850

Segment assets 1,870,039,765 149,337,365 2,019,377,130Unallocated assets 2,374,428,324

4,393,805,454

Segment liabilities 3,951,292,775 1,005,914,476 4,957,207,251Unallocated liabilities 1,019,287,371

5,976,494,622




Total31 December 2015

Investment activitiesRupees





Income from lease operations 3,878,959 - 3,878,959Income from investments - 240,214 240,214Income from finances / loans 22,869,385 - 22,869,385Total income for reportable segments 26,748,344 240,214 26,988,558

Finance cost 1,672,928 63,300 1,736,228Administrative and operating expenses 37,099,240 - 37,099,240Lease receivables written off 13,617,298 - 13,617,298Reversal against lease, term loan and other receivables 33,919,819 - 33,919,819Impairment on available for sale investment - (1,935,723) (1,935,723)Other income 474,109 3,476,420 3,950,529Segment result 8,752,806 1,717,611 10,470,417

Profit before taxation 10,470,417

Segment assets 1,980,122,635 133,622,546 2,113,745,181Unallocated assets 2,484,339,188

4,598,084,369

Segment liabilities 3,523,567,720 1,160,507,027 4,684,074,747Unallocated liabilities 1,054,837,924

5,738,912,671

29 FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS

The Company's activities expose it to a variety of financial risks: credit risk, liquidity risk and market risk (including currency risk and interest rate risk).

The condensed interim financial information does not include all financial risk management information and disclosures required in the annual financial statements and should be read in conjunction with the Company's audited annual financial statements for the year ended 30 June 2015.

The Company's financial risk management objectives and policies are consistent with those disclosed in the annual consolidated financial statements of the Company as at and for the year ended 30 June 2015.

The carrying value of all financial assets and liabilities reflected in the condensed interim financial information approximate their fair value.

30 FUNDAMENTAL ERROR

During previous financial year, the company redeemed its preference shares to KASB Income Opportunity Fund (KIOF) of Rs. 70 million with the offer to sale/transfer of Dewan Pre-IPO TFC'c worth Rs. 50 million and Tricon's unlisted shares of Rs. 20 million. This offer was duly accepted by KASB Income Opportunity Fund (KIOF). However, Trust Investment Bank Limited could not obtained necessary approvals from Securities and Exchange Commission of Pakistan (SECP)

23








for the said transaction. During current financial period, after mutual consent of parties, this transaction is reversed back to reflect the original state in accordance with IAS 8 "Accounting Policies, Changes in accounting Estimates and Errors". Previously these investment amounts were taken in "other receivables. The effect of this restatement has been re-summarized below:

Effect on 30 June 2015 Effect on balance sheet

Increase in equity 70,000,000

Increase in current assets 70,000,000

Effect on profit and loss account Nil

31 EXPOSURE EXCEEDING 20% OF EQUITY

Below is the outstanding exposure exceeding 20% of equity:

Particulars Party name Amount(in Rupees)

Long term loans Ali Pervaiz and Associates 393,125,286/-

32 DATE OF AUTHORIZATION

The condensed financial information was authorized for issue on February 26, 2016 by the Board of Directors.

33 GENERAL

33.01 The figures of condensed interim profit and loss account and condensed interim statement of comprehensive income for the quarters ended 31 December 2015 and 2014 were subject to limited scope review by the auditors as scope of review covered only the cumulative figures.

33.02 Corresponding figures have been re-arranged and/or re-classified for the purpose of better presentation the effect of which is not material.

33.03 Figures have been rounded off to the nearest of rupee.


24



Trust Investment Bank Limited

Condensed InterimConsolidated Financial Information

Half Yearly Report (un-audited)

For the half year ended December 31, 2015

ASSETSNon-current assetsFixed assets 5 2,941,701,671 2,988,254,534Long term investments 6 17,758,077 20,862,988Long term loans and advances 7 16,761,660 16,761,654Net investment in lease finance 8 - -Long term deposits 8,419,909 8,693,458

2,984,641,317 3,034,572,634

CURRENT ASSETSCurrent maturities of non - current assets 9 1,013,237,400 1,059,226,136Short term loans and advances 10 75,193,735 58,299,581Short term placements 11 6,000,000 11,000,000Short term prepayments 3,079,471 2,972,914Mark-up accrued 191,749,149 190,948,268Taxation - net 960,904 1,096,139Other receivables 12 104,795,764 104,845,808Cash and bank balances 13 4,520,868 6,483,570

1,399,537,291 1,434,872,4164,384,178,608 4,469,445,050

EQUITY AND LIABILITIESShare capital and reservesShare capital 892,028,729 892,028,729Reserves (2,493,229,397) (2,494,056,346)

(1,601,200,668) (1,602,027,617)

Surplus on revaluation of property, plant and equipment 18,511,500 18,511,500

NON CURRENT LIABILITIESLong term financing-subordinated loan 14 2,788,220,472 2,788,220,472Long term financing-others 15 - 57,624,657Long term morabaha 16 - -Long term certificates of investment 17 1,562,500 1,562,500Deferred liabilities 5,351,517 7,471,687Long term deposits 18 2,317,350 35,237,224

2,797,451,839 2,890,116,540

CURRENT LIABILITIESShort term borrowings 19 39,413,532 39,413,532Short term certificates of investment 20 983,543,213 1,036,976,463Current maturities of non current liabilities 21 1,732,173,852 1,653,748,312Mark-up accrued 251,913,926 257,286,916Trade and other payables 22 162,371,414 175,419,404

3,169,415,937 3,162,844,627Contingencies and commitments 23 - -

4,384,178,608 4,469,445,050

The annexed notes from 01 to 28 form an integral part of this consolidated condensed interim financial information.

AS AT DECEMBER 31, 2015



2015Rupees


2015RupeesNote


26

CONDENSED INTERIM CONSOLIDATED BALANCE SHEET (un-audited)


Income

Income from lease operations 183,757 3,878,959 59,217 352,323Income from investments 297,697 240,214 152,466 144,525Income from term loans 13,331,623 22,869,385 4,964,198 10,279,126

13,813,077 26,988,558 5,175,881 10,775,974

Finance cost 730,364 1,742,381 39,983 858,94713,082,713 25,246,177 5,135,898 9,917,027

Administrative and operating expenses 33,292,600 37,608,506 18,771,444 17,331,824(20,209,887) (12,362,329) (13,635,546) (7,414,797)

Other income 21,369,900 4,172,118 14,344,722 1,968,0981,160,013 (8,190,211) 709,176 (5,446,699)

Other operating expenses 739,163 13,617,298 625,038 4,405,575Profit/(Loss) before provisions and taxation 420,850 (21,807,509) 84,138 (9,852,274)

Provision reversed against lease And term loan - 33,919,819 - 33,919,819Impairment charged in the value of investment - 1,641,893 71,355 2,105,581

- 32,277,926 71,355 31,814,238Profit before taxation 420,850 10,470,417 12,783 21,961,964

Taxation 24 138,131 942,338 138,131 942,338

Net profit for the period 282,719 9,528,079 (125,348) 21,019,626

Earnings per share - basic 25 0.00 0.14 (0.00) 0.30

Earnings per share - diluted 25 0.00 0.12 (0.00) 0.26



Note2015

Rupees2014

Rupees2014

Rupees2015

Rupees




27

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



CASH FLOWS FROM OPERATING ACTIVITIESProfit before taxation 420,850 10,470,417

Adjustments for non cash / non operating items:Depreciation and amortization 1,396,996 1,519,130Provision for staff retirement benefits 488,863 -Lease receivables written off 739,163 9,211,723Finance cost 730,364 879,788Profit on disposal of fixed assets (4,269,627) -Profit on settlement (142,454) -Impairment charged in the value of investment - 1,641,893

(1,056,695) 13,252,534Operating (loss) / profit before working capital changes (635,845) 23,722,951

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

Long term loans and advances 451,203 (248,337)Net investment in lease finance 46,749,017 32,865,734Short term loans and advances (16,894,154) (5,996,718)Short term placements 5,000,000 3,000,000Short term prepayments (106,557) 11,491Mark-up accrued (800,881) (2,588,885)Other receivables 50,044 (30,779,555)

34,448,672 (3,736,270)

Increase / (decrease) in liabilities:Certificates of investment (54,385,729) (3,103,593)Trade and other payables (13,047,990) 1,439,348Long term deposits (8,682,050) -

(76,115,769) (1,664,245)Cash (used in) / generated from operations (42,302,942) 18,322,436

Finance cost paid (6,103,354) (879,788)Taxes paid (2,896) (100,456)Staff service cost paid (2,609,033) (165,000)

(8,715,283) (1,145,244)Net cash (used in)/generated from operating activities (51,018,225) 17,177,192

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of fixed assets (12,125,096) (256,306)Capital work in progress 56,571,428 -Long term investments 1,893,421 (240)Long term deposits 273,549 -Proceeds from disposal of fixed assets 4,979,162 -

Net cash generated from investing activities 51,592,464 (256,546)


28

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


FOR THE HALF YEAR ENDED DECEMBER 31, 2015 Un-auditedDecember 31,

2015Rupees


2014Rupees

CASH FLOWS FROM FINANCING ACTIVITIES

Long term financing (2,536,941) -Net cash used in financing activities (2,536,941) -Net (decrease) / increase in cash and cash equivalents (1,962,702) 16,920,646Cash and cash equivalents at the beginning of the period (32,929,962) (30,561,267)Cash and cash equivalents at the end of the period (34,892,664) (13,640,621)






2015Rupees


2014Rupees



30

CONDENSED INTERIM CONSOLIDATED STATEMENT OFCOMPREHENSIVE INCOME (un-audited)


Net profit for the period 282,719 9,528,079 17,362 21,019,626

Other comprehensive income:

Items that may be reclassifiedsubsequently to profit and loss account

- Unrealized gain on remeasurementof available for sale investments 544,230 - - -

Total comprehensive incomefor the period 826,949 9,528,079 17,362 21,019,626


2015Rupees

2014Rupees

2014Rupees

2015Rupees






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NOTES TO THE CONDENSED INTERIM CONSOLIDATEDFINANCIAL INFORMATION (un-audited)




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 subsidiary company Trust Capital (Private) Limited ("TCPL).

1.01 PARENT COMPANY

1.01.1 Trust Investment Bank Limited ("the Company") was incorporated in 1992 as a public limited Company under the provisions of the Companies Ordinance, 1984 and is listed on Pakistan Stock Exchange Limited. 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).

1.01.2 The accumulated losses of the company amounts to Rs. 2,780.747 million as at balance sheet date. The company has paid renewal fee for Investment Finance Services (IFS) license, however, the Securities and Exchange Commission of Pakistan (SECP) has not yet renewed company’s license to operate Investment Finance Services (IFS) and also suspended the permission for raising deposits in any form. Moreover, the Pakistan Credit Rating Agency Limited (PACRA) has withdrawn the long-term (previously "D") and short-term (previously "D") credit rating since 19 November 2012 on the management's request. These conditions indicate the existence of a material uncertainty regarding the future operations of the company. During the period, the company has successfully negotiated settlement with major depositors through cash / properties and negotiations with financial institutions are in process. The preference shares amounting to Rs. 80.750 million have been converted into ordinary shares. The company has generated some liquidity through expediting recovery process and disposal of its assets. To sustain liquidity position, the company has started new business that has brought new income stream in current operations. With all these measures in place and expected cash injection from directors and financial institutions in coming months, the liquidity position will be strengthened. Based on above and the financial projections as prepared by the company for future periods, the management is confident that the company shall continue and further improve its business growth during the coming years resulting in improvement of its profitability. Hence this financial information has been prepared on going concern basis.

1.02 Subsidiary Company

Trust Capital (Private) Limited was incorporated as a private limited company on 20 June 2008 under the provisions of the Companies Ordinance, 1984. TCPL is engaged in the business of stock brokerage, portfolio management and trading in listed securities on Pakistan Stock Exchange Limited.

2 BASIS OF PREPARATION

2.01 This condensed interim consolidated financial information for the six months period ended 31 December 2015 has been prepared in accordance with the requirements of the International Accounting Standards 34 “Interim Financial Reporting” and provisions of and directives issued under the Companies Ordinance, 1984. In case where requirements differ, the provisions of or directives issued under the Companies Ordinance, 1984 have been followed.

2.02 This condensed interim consolidated financial information does not include all of the information required for annual financial statements and should be read in conjunction with the annual consolidated financial statements as at and for the year ended 30 June 2015.

2.03 This condensed interim consolidated financial information is presented in Pakistan Rupees which is also the Group’s functional currency and all financial information presented has been rounded off to the nearest Rupee, except otherwise stated.



2.04 This condensed interim consolidated financial information is unaudited and is being submitted to the shareholders as required by listing regulations of Pakistan Stock Exchange vide section 245 of the Companies Ordinance 1984.

2.05 The classifications and provisioning requirements against non-performing assets have been considered in accordance with the applicable requirements of the Non-Banking Finance Companies and Notified Entities Regulations, 2008.

3 SIGNIFICANT ACCOUNTING POLICIES

The accounting policies adopted for the preparation of the condensed interim consolidated financial information are the same as those applied in the preparation of the annual consolidated financial statements of the Group for the year ended 30 June 2015.

3.01 Changes in accounting standards and interpretations

a) Standards, interpretations and amendments to published approved accounting standards that are effective and relevant

Following amendments to existing standards and interpretations have been published and are mandatory for accounting periods beginning on or after 01 January 2015 and are considered to be relevant to the Group's operations.

- IFRS 10 ‘Consolidated Financial Statements’, IFRS 12 ‘Disclosure of Interests in Other Entities’ and IFRS 13 ‘Fair Value Measurements’. These standards became applicable from 01 January 2015, as per the adoption status of IFRS in Pakistan.

- IFRS 10 replaces the current guidance on consolidation in IAS 27 ‘Consolidated and Separate Financial Statements’. It introduces a single model of assessing control whereby an investor controls an investee when it has the power, exposure to variable return and the ability to use its power to influence the returns of the investee. IFRS 10 also includes specific guidance on de facto control, protective rights and the determination of whether a decision maker is acting as principal or agent, all of which influence the assessment of control. The application of IFRS 10 did not result in any investee being in control of the Group.

- IFRS 12 prescribes additional disclosures around significant judgments and assumptions made in determining whether an entity controls another entity and has joint control or significant influence over another entity. The standard also requires disclosure on the nature and risks associated with interests in unconsolidated structured entities. The application of IFRS 12 did not result in any investee being in control of the Group.

- IFRS 13 ‘Fair Value Measurement’, consolidates the guidance on how to measure fair value, which was spread across various IFRS, into one comprehensive standard. It introduces the use of an exit price, as well as extensive disclosure requirements, particularly the inclusion of non-financial instruments into the fair value hierarchy. The application of IFRS 13 does not have an impact on the condensed interim financial information of the Group.

b) Standards, interpretations and amendments to published approved accounting standards that are effective but not relevant

There are certain new standards, amendments to the approved accounting standards and new interpretations that are mandatory for accounting periods beginning on or after 01 January 2015, but are considered not to be relevant or have any significant effect on the Group's reporting and are therefore, not disclosed in this condensed interim financial information.



4 ESTIMATES AND JUDGEMENTS

The preparation of this condensed interim consolidated financial information requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reporting amounts of assets and liabilities, income and expenses. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.

Estimates and judgments made by management in the preparation of this condensed interim consolidated financial information are the same as those which were applied to the annual consolidated financial statements of the Group as at and for the year ended 30 June 2015.

5 FIXED ASSETS

Tangible: Property, plant and equipment 844,401,063 834,335,783Capital work in progress 2,066,413,022 2,122,984,450

Intangible Assets 30,887,586 30,934,3012,941,701,671 2,988,254,534

6 LONG TERM INVESTMENTS

Investment in financial instruments 71,873,320 82,953,550Less: Impairment in the value of investments 28,460,293 37,647,102

43,413,027 45,306,448Less: Current portion of long term investments 9 25,654,950 24,443,460

17,758,077 20,862,988

7 LONG TERM LOANS AND ADVANCES

Secured:Employees - considered good 62,957 464,159Companies, organizations and individuals:

- Considered good 28,693,827 28,743,828- Considered doubtful 7,047,805 7,047,805

35,741,632 35,791,63335,804,589 36,255,792

Un-secured:Companies, organizations and individuals - Considered doubtful 397,838,899 397,838,899

433,643,488 434,094,691Less: provision against doubtful loans 7.01 396,594,364 396,594,364

37,049,124 37,500,327Less : current maturity 9 20,287,464 20,738,673

16,761,660 16,761,654


2015Rupees

AuditedJune 30,

2015RupeesNote



7.01 Provision against doubtful loans

Opening balance 396,594,364 403,653,029Charge for the period/year - 44,099Reversal during the period/year - (7,102,764)Closing balance 396,594,364 396,594,364

8 NET INVESTMENT IN LEASE FINANCE

Lease payments receivable 1,088,328,647 1,126,251,228Add: Residual value 284,703,586 293,558,161Gross investment in leases 1,373,032,233 1,419,809,389

Less: Unearned finance income 811,669 839,808 Income suspended 129,584,710 129,584,710 Provision for lease losses 275,340,868 275,340,868

405,737,247 405,765,386Net investment in lease finance 967,294,986 1,014,044,003Less: Current portion of net investment in lease finance 9 967,294,986 1,014,044,003

- -

9 CURRENT MATURITIES OF NON-CURRENT ASSETS

Long term investments 6 25,654,950 24,443,460Long term loans and advances 7 20,287,464 20,738,673Net investment in lease finance 8 967,294,986 1,014,044,003

1,013,237,400 1,059,226,136

10 SHORT TERM LOANS AND ADVANCES

Short term loans-secured 10.01 36,823,126 31,460,541Short term advances 38,370,609 26,839,040

75,193,735 58,299,581

10.01 Short term loans-secured

Companies, organizations and individuals:- Considered good 36,289,524 30,926,939- Considered doubtful 1,302,541 1,302,541

37,592,065 32,229,480Less: Provision against doubtful loans 768,939 768,939

36,823,126 31,460,541

11 SHORT TERM PLACEMENTS

Repurchase agreement lendings (Reverse Repo) 7,022,877 7,022,877Placement with First Fidelity Leasing Modaraba 1,000,000 1,000,000Term Deposit Receipt (TDR) 5,000,000 10,000,000

13,022,877 18,022,877Less: Provision against doubtful lending 7,022,877 7,022,877

6,000,000 11,000,000


2015Rupees

AuditedJune 30,

2015RupeesNote



12 OTHER RECEIVABLES

Receivable from broker - considered doubtful 13,614,432 14,614,432Miscellaneous receivables from lessees - Considered doubtful 12.01 387,611,778 380,501,827Other receivables:

- Considered good 72,054,384 78,313,219- Considered doubtful 4,724,364 4,625,524

76,778,748 82,938,743478,004,958 478,055,002

Less: Provision for doubtful receivables 12.02 373,209,194 373,209,194104,795,764 104,845,808

12.01 This represents insurance and other miscellaneous charges receivable from lessees, in respect of vehicles insured by the bank against assets leased to them.

12.02 Movement of provisions for doubtful receivable

Opening balance 373,209,194 344,638,816Charged for the period/year - 80,767,848

373,209,194 425,406,664Written off during the period/year - (16,420,412)Reversed during the period/year - (35,777,058)Closing balance 373,209,194 373,209,194

13 CASH AND BANK BALANCES

Cash in hand 420,550 429,766Cash with banks in:

- Current accounts 323,894 331,590- Deposit accounts 3,776,424 5,722,214

4,100,318 6,053,8044,520,868 6,483,570

14 LONG TERM FINANCING - SUBORDINATED LOAN

Long term financing-subordinated loan 14.01 2,788,220,472 2,788,220,472

14.01 Particulars of subordinated loan

Loan from:Director-Asif Kamal 14.01.1 716,350,637 716,350,637Director-Mamoon -ur- Rasheed 14.01.2 74,919,835 74,919,835Director-Asad Kazmi 14.01.3 1,996,950,000 1,996,950,000

2,788,220,472 2,788,220,472


2015Rupees


2015RupeesNote



14.01.1 This represents properties amounting to Rs. 342.073 million and Rs. 150 million of Muhammad Akram and Muhammad Fiaz, respectively, injected for equity participation in favor of Mr. Asif Kamal through equity participation agreement. It also includes Trust Investment Bank Limited (TIBL) obligation to Tricon Developers Limited for cash component of subordinated loan i.e. Rs. 100 million through agreement in favor of Mr. Asif Kamal. Further, property amounting to Rs. 124.277 million from Mr. Asif Kamal had been injected on 30 June 2014. All the properties had been duly transferred in the name of the Trust Investment Bank Limited.

14.01.2 Properties amounting to Rs. 258.675 million of Mrs. Samina Khurram had been injected for equity participation in favor of Mr. Mamoon Ur Rasheed through equity participation agreement. The Trust Investment Bank Limited will pay 20% of the agreed price in cash and balance 80% in the form of issuance / transfer of shares at par, in favour of legal owners, subject to approval of SECP. However, title of properties amounting to Rs. 183.756 million could not be transferred in the name of TIBL, so these properties have been derecognised during previous financial year. Remaining properties had been duly transferred in the name of the Trust Investment Bank Limited.

14.01.3 This represents subordinated loan acquired against land from Mr. Khizer Hayat for equity participation in favor of Mr. Asad Kazmi through equity participation agreement. As per the terms of the agreement TIBL will pay an amount of Rs. 50 million as an initial payment and balance in the form of issuance / transfer of shares of Trust Investment Bank Limited at par, subject to approval of SECP. Title of this property had been transferred in the name of the Trust Investment Bank Limited through court order.

15 LONG TERM FINANCING - OTHERS

Banking companies and other financial institutions-Secured 15.01 - 57,624,657Banking companies and other financial institutions-Unsecured 15.02 - -Term finance certificates (TFC)-Secured 15.03 - -

- 57,624,657

15.01 Banking companies and other financial institutions-Secured


- 57,624,657

15.02 Banking companies and other financial institutions-Unsecured


- -

15.03 Term finance certificates (TFC)-Secured

TFC III 221,212,730 221,212,730Less: Unamortized portion of the initial transaction cost - -


- -


2015Rupees

AuditedJune 30,

2015RupeesNote



16 LONG TERM MORABAHA

Long term morabaha 15,500,000 15,500,000Less: Current portion shown under current liabilities 21 15,500,000 15,500,000

- -

17 LONG TERM CERTIFICATES OF INVESTMENT

Corporate:- Secured 22,371,263 22,371,263- Unsecured 162,395,179 163,295,179


1,562,500 1,562,500

18 LONG TERM DEPOSITS

Margin against letters of guarantee 137,348,745 137,176,220Less: Current portion shown under current liabilities 21 135,031,395 101,938,996

2,317,350 35,237,224Deposits against lease arrangements 284,150,994 293,005,569Less: Current portion shown under current liabilities 21 284,150,994 293,005,569

- -2,317,350 35,237,224

19 SHORT TERM BORROWINGS

Banking companies and other financial institutions:Running finances - secured 39,413,532 39,413,532

20 SHORT TERM CERTIFICATES OF INVESTMENT

- Financial institutions 10,350,006 10,350,006 - Corporate 951,042,392 1,003,875,642 - Individuals 22,150,815 22,750,815

983,543,213 1,036,976,463

20.01 These represent unsecured short term certificates of investment for a period of one months to one year. These carry mark-up rate ranging from 0% to 18.75% (30 June 2015: 0% to 18.75%) per annum.


2015Rupees

AuditedJune 30,

2015RupeesNote

21 CURRENT MATURITIES OF NON CURRENT LIABILITIES

Long term financing from banking companies and financial Institutions:

- Secured 15.0 875,822,832 820,735,116- Unsecured 15.0 17,251,959 17,251,959

Term finance certificates-Secured 15.0 221,212,730 221,212,730Long term morabaha 16 15,500,000 15,500,000Certificates of investment 17 183,203,942 184,103,942Long term deposits 18 419,182,389 394,944,565

1,732,173,852 1,653,748,312

22 TRADE AND OTHER PAYABLES

Advance receipt against finance facilities - 5,564,822Unclaimed dividend 3,092,624 3,092,624Preference dividend payable 58,023,276 58,023,278Accrued liabilities 17,162,043 16,628,162Other liabilities 84,093,471 92,110,518

162,371,414 175,419,404

23 CONTINGENCIES AND COMMITMENTS

23.01 Contingencies

There is no material change in the status of contingencies as disclosed in note No. 32.1 of the financial statements for the year ended 30 June 2015 except following:

a) The Company has issued guarantees to various parties on behalf of clients amounting to Rs. 657.86 million (30 June 2015: Rs. 879.162 million).

b) The Company has filed recovery suits amounting to Rs. 1,439.33 million (30 June 2015: Rs. 2,195.42 million). Prima facie the Bank has good arguable cases, the financial impact of the same has been accounted for in this financial information.

c) The company has not provided for mark-up of Rs. 889.449 million in preceding years and Rs. 95.855 million during the period on financing from banking companies and other financial institutions, term finance certificates, certificates of Investment, long term morabaha and on running finance in these financial information due to pending litigations. Had the markup been provided, net profit for the year would have been decreased by Rs. 95.855 million, mark up payable and accumulated losses would have been increased by Rs. 985.304 million.

23.02 Commitments

There exists no commitment as at balance sheet date.


2015Rupees

AuditedJune 30,

2015RupeesNote


FOR THE HALF YEAR ENDED DECEMBER 31, 2015 39

24 PROVISION FOR TAXATION

Current taxFor the year 138,131 942,338 - 942,338Deferred - - - -

138,131 942,338 - 942,338

25 EARNINGS PER SHARE

25.01 Earnings per share - basic




Earnings per share - basic Rs. 0.00 0.14 0.00 0.30

25.02 Earnings per share - diluted




Earnings per share - diluted Rs. 0.00 0.12 0.00 0.26

26 CASH AND EQUIVALENTS

Cash and bank balances 4,520,868 6,483,570Short term running finance (39,413,532) (39,413,532)

(34,892,664) (32,929,962)

27 DATE OF AUTHORIZATION

The condensed consolidated financial information was authorized for issue on February 26, 2016 by the Board of Directors.

28 GENERAL

28.01 The figures of condensed interim profit and loss account and condensed interim statement of comprehensive income for the quarters ended 31 December 2015 and 2014 were subject to limited scope review by the auditors as scope of review covered only the cumulative figures.

28.02 Corresponding figures have been re-arranged and/or re-classified for the purpose of better presentation the effect of which is not material.

28.03 Figures have been rounded off to the nearest of rupee.

31 December2015

Rupees

31 December2014

Rupees

31 December2015

Rupees

31 December2014

Rupees





2015Rupees

AuditedJune 30,

2015Rupees


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

for the period ended december 31, 2015

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