management accounts for thenine months ended...

MANAGEMENT ACCOUNTS FOR THE NINEMONTHS ENDED SEPTEMBER 30, 2019

Balance SheetAs at September 30, 2019

Description Note September 2019 Audited December2018

ASSETSCash & Bank Balances with SBP/NBP 3,421,146 3,751,514Balances with other Banks & TDR 2 1,599,259,467 1,110,925,688Investments 3 204,272,799 -Advances - net of provision 4 1,684,439,929 1,198,622,053Government Securities 5 806,962,333 11,051,636Operating Fixed Assets 6 111,924,611 52,318,751Other Assets 7 201,971,290 89,980,633Deferred tax asset-net 8 28,380,270 22,072,197

4,640,631,844 2,489,547,513

LIABILITIESDeposits 9 6,820,426 6,784,301Other Liabilities 10 235,492,866 116,426,732Borrowing From SBP 11 1,982,284,483 -

2,224,597,776 123,211,033NET ASSETS 2,416,034,069 2,366,336,480

SHARE CAPITALIssued, Subscribed & Paid up Capital 2,308,300,000 2,308,300,000Share Premium 52,041,600 52,041,600Statutory and general reserve 35,834,288 26,320,606Depositor's Protection Fund 9,694,523 6,873,233Accumulated Profit / (Loss) 10,163,659 (27,198,959)

2,416,034,069 2,366,336,480

Profit & Loss AccountAs at September 30, 2019

Description September 2019 AuditedDecember 2018

A FMark-up / Return Earned Advances ( Micro Loans) 414,814,624 342,587,674Placement with Financial Institutions 29,597,406 54,750,558Investment in Govt Securities 22,037,126 1,779,670Other Income 84,090,802 39,957,996

550,539,957 439,075,898Less:Mark-up Expense 65,434,349 (49,676)Net Mark-up Income 485,105,608 439,075,898

ProvisionProvision against non-performing loans andadvances 150,338,886 83,893,910General provision against advances 5,053,812 5,244,749

155,392,698 89,138,659Net Mark-up Income after provisions 329,712,910 349,937,239

Non Mark-up IncomeDividend Income 7,773,272 5,443,337Processing Fee - net of insurance expense 58,638,726 52,661,896Miscellaneous Income 1,583,199 11,057,025

67,995,197 69,162,258Total Income 397,708,108 419,099,497

Less : Administration ExpensesSalaries & Other Benefits 184,362,274 173,765,399Other Administrative Expenses 155,603,405 144,712,178

339,965,679 318,477,577Profit before Tax 57,742,428 100,621,920

Provision for taxationCurrent Tax 15,657,046 38,794,938Prior Year Adjustment -Deferred Tax (5,483,028) (1,367,155)CGT Tax 2,917,360(Loss) / Profit After Tax 47,568,410 60,276,777

STATEMENT OF CHANGES IN EQUITY For the period ended September 30, 2019

Share Capital SharePremium Statutory reserve

Depositors'Protection

FundRetained Earnings Total

Balance as at December 31, 2017 2,308,300,000 53,776,320 14,275,064 3,724,360 (69,422,192) 2,310,653,552

Total Comprehensive income:

Profit after tax for the year ended December 31, 2018 - - - - 57,417,648 57,417,648

Transfer to Statutory reserve - - 12,045,542 - (12,045,542) -

Transfer to Depositors' Protection Fund- 5% of the profit after tax - - - 3,011,386 (3,011,386) -- return on investment - net of tax - - - 137,487 (137,487) -

- - - 3,148,873 (3,148,873) -

Issue of share capital - deferred tax - (1,734,720) - - - (1,734,720)

Balance as at December 31, 2018 2,308,300,000 52,041,600 26,320,606 6,873,233 (27,198,959) 2,366,336,480

Total Comprehensive income:

Profit after tax for the period ended - - - - 47,568,410 47,568,410 December 31, 2019

Reclassification of gain on investments

Transfer to Statutory reserve - - 9,513,682.06 - (9,513,682) -

Transfer to Depositors' Protection Fund- 5% of the profit after tax - - - 2,378,421 (2,378,421) -- return on investment - net of tax - - - - - -

- - - 2,378,421 (2,378,421) -

Balance as at September 30, 2019 2,308,300,000 52,041,600 35,834,288 9,694,523 10,163,659 2,416,034,069

Balances With Other Banks & TDRAs at September 30, 2019

Note 2

2.1 Bank Balances September 2019 Dec 2018

- Current Account Balances 77,583,132 29,448,356 - Saving Account Balances-United Bank Limited 57,523,022 42,030,601-Khushali Microfinance Bank Limited 359,152,283 293,439,393-NRSP Microfinance Bank Limited 395,305,978 102,503,690-U Microfinance Bank Limited 229,252,429 98,281-Others 4,832,247 23,835,467

1,046,065,959 461,907,432

Total 1,123,649,091 491,355,788

2.2 Term Deposit Receipts

Khushali Bank Limited 237,765,000 118,884,589U Microfinance Bank 166,520,870FINCA Microfinance Bank - 80,321,140Telenor Microfinance Bank 173,843,299Mobilink MFC Ltd 237,845,376 80,000,000Total 475,610,376 619,569,898

Grand Total 1,599,259,467 1,110,925,686

Investments

As at September 30, 2019

Note 3

3.1. Mutual Fund September 2019 December 2018Date of

Investment Investee Amount Amount

24-Jul-19 MCB CASH MANAGEMENT OPTIMIZER 102,064,089 -

15-Jul-19 LIQUIDITY PLUS FUND 102,208,710

Total 204,272,79925,799,654.49 -

Grand Total 204,272,79925,799,654 -

Advances - Net of ProvisionAs at September 30, 2019

Note 44 As at June 30, 2019

Loan to Groups September 2019 Dec 2018 -Micro Business Loans 26,648,691 288,645,345 -Micro Agri Loans 11,061 149,113 -Micro Assets Loans - 31,934 -Micro Live Stock Loans 5,901,091 101,982,560 -Micro Business Loans- New 227,814 2,564,603 -MBL-New Group 1,192,285,269 523,416,202 -LSL-New Group 309,204,836 125,011,555 -NMBL-New Group 849,524 115,594

Loan to Individuals -Micro Enterprise Loan 66,929,110 137,435,077 -Micro Ent Individual Loan-LSL 35,977,046 64,224,842 -Bara Karobar 2,090,099 - -Bara Karobar-LSL 371,425 - -Salary Loan 6,646,408 3,641,939 -Individual Loan-New 68,320,890 - -Individual Loan-LSL-New 33,050,374 - -BKB Loan-New 6,841,830 - -BKB Loan-LSL-New 4,161,262 - -Bullet Zarai Karza-Individual 350,000 - -Bullet Zarai Karza-Group 1,300,000 -

Total Advances before Provision 1,761,166,728 1,247,169,936

Provision - Specific Provision (59,565,685) (36,440,582) - General Provision (17,161,113) (12,107,301)

(76,726,799) (48,547,883)Total Advances after Provision 1,684,439,930 1,198,622,053

Advances - Net of ProvisionAs at September 30, 2019

4.2 Type of LoansSeptember 2019 December 2018

Number ofLoans Advances Number of

Loans Advances

- Considered good 45,422 1,579,025,846 34,114 1,143,453,453 - Considered doubtful 8,199 182,140,882 6,031 103,716,483

53,621 1,761,166,728 40,145 1,247,169,936

-Loans Written off as at Balance Sheet Date 21,667 254,038,695 14,215 134,081,833

4.3A Classification of Loans by ageSeptember 2019

Number ofLoans

ClassifiedAdvances

ProvisionRequired Provision Held

-*OAEM (Over Due by 30 to 59 days ) 2,407 57,567,820 - --Sub Standard (Over Due by 60 to 89 days ) 1,654 40,567,235 10,141,809 10,141,809-Doubtful (Over Due by 90 to 179 days) 3,258 69,163,900 34,581,950 34,581,950-Loss (Over Due by 180 days or more) 880 14,841,926 14,841,926 14,841,926

Total 8,199 182,140,882 59,565,685 59,565,685

4.3B Classification of Loans by ageDecember 2018

Number ofLoans

ClassifiedAdvances

ProvisionRequired Provision Held

-*OAEM (Over Due by 30 to 59 days ) 1,853 31,823,465 - --Sub Standard (Over Due by 60 to 89 days ) 1,192 19,759,682 4,939,921 4,939,921-Doubtful (Over Due by 90 to 179 days) 2,323 41,265,349 20,632,675 20,632,675-Loss (Over Due by 180 days or more) 663 10,867,987 10,867,987 10,867,987

Total 6,031 103,716,483 36,440,582 36,440,582

4.4 The movement of provision against non-performing advances is as follows:

September 2019

Note Specific General Total

Opening balance 36,440,582 12,107,301 48,547,883

Charge / (Reversal) for the year 150,338,886 5,053,812 155,392,698Less: Amounts written off during the period (127,213,782) - (127,213,782)

Closing balance 59,565,685 17,161,113 76,726,799

December 2018

Note Specific General Total

Opening balance 8,504,275 6,862,552 15,366,827

Charge / (Reversal) for the year 83,893,910 5,244,749 89,138,660Less: Amounts written off during the year (55,957,603) - (55,957,603)

Closing balance 36,440,582 12,107,301 48,547,883

4.5 Write off reconciliation in memorendum accountsSeptember 2019

Opening Balance as at December 31, 2018 134,081,833

Amounts written off during the year 127,213,782

Less: Recovery from write offs (9,609,089)

Closing balance as at September 30, 2019 251,686,526

Government SecuritiesAs at September 30, 2019

Note 5

September 2019 December 2018Pakistan Investment Bond (DPF 1) -Date of Issue : 21-Apr-16 26-Mar-15 -Date of Maturity : 21-Apr-21 26-Mar-18 -Coupon Rate 7.75% 8.75% -Yield 7.16% 7.25%Face Value 2,000,000 -

Premium / (Discount) 17,105 -2,017,105 -

Pakistan Investment Bond (DPF 2) -Date of Issue : 29-Dec-16 10-Jun-04 -Date of Maturity : 29-Dec-21 10-Jun-19 -Coupon Rate 7.75% 9.00% -Yield 8.03% 6.35%Face Value 4,000,000 5,000,000

Premium / (Discount) (23,035) 56,713Net Value 3,976,965 5,056,713

Pakistan Investment Bond 3 (DPF 3) -Date of Issue : 12-Jul-18 21-Apr-16 -Date of Maturity : 21-Apr-21 21-Apr-21 -Coupon Rate 7.25% 7.75% -Yield 13.65% 7.16%Face Value 1,000,000 2,000,000

Premium / (Discount) (94,261) 24,745Net Value 905,739 2,024,745

Pakistan Investment Bond 4 (DPF) -Date of Issue : 12-Jul-18 29-Dec-16 -Date of Maturity : 21-Apr-21 29-Dec-21 -Coupon Rate 7.25% 7.75% -Yield 14.15% 8.03%Face Value 3,000,000 4,000,000

Premium / (Discount) (314,870) (29,822)Net Value 2,685,130 3,970,178

Treasury Bills -Date of Issue : 18-Jul-19 16-Aug-18 -Date of Maturity : 10-Oct-19 8-Nov-18 -Coupon Rate - - -Yield 13.72% 7.75%Face Value 800,000,000 -

Premium / (Discount) (2,622,606) -Net Value 797,377,394 -TOTAL 806,962,333 11,051,636

Fixed Assets & Capital Work in ProgressAs at September 30, 2019

6 OPERATING FIXED ASSETS September2019 Dec 2018

----------- Rupees -----------

- Right of use asset 40,892,193 - - Property and equipment 60,380,437 50,702,004 - Intangible assets 10,651,981 1,616,747

111,924,611 52,318,751

6.1 Property and equipmentSeptember 2019

COST DEPRECIATION Book value as at 30September 2019

Rate ofdepreciationAs at 01 January

2019Additions /(disposals) /adjustments

As at 30September 2019

As at 01 January2019

Charge forthe year /

(disposals)


------------------------------------------------------------------------- (Rupees) ------------------------------------------------------------------------- %

Owned

Leasehold improvements 15,147,084 6,123,687 21,270,771 4,945,344 2,386,144 7,331,488 13,939,283 20% (Building's fixtures)

Office equipment 11,222,353 6,604,026 17,826,379 4,450,877 1,872,657 6,323,534 11,502,845 20%

Furniture and fixture 13,262,839 6,167,102 19,364,453 5,765,581 1,780,207 7,480,300 11,884,152 20%(65,488) (65,488)

Computers 23,613,363 5,615,351 29,228,714 18,406,045 3,191,543 21,597,588 7,631,126 33%

Vehicles 37,071,598 1,897,286 35,801,184 16,047,386 7,755,994 20,378,154 15,423,030 20%(3,167,700) (2,392,895)

100,317,237 26,407,452 123,491,501 49,615,233 16,986,544 63,111,063 60,380,437(3,233,188) (2,458,383)

2018COST DEPRECIATION Book value as at

December 31 2018Rate of

depreciationAs at 01 January2018

Additions /(disposals) /adjustments

As at December31 2018


Charge forthe year /

(disposals)

As at December31 2018

------------------------------------------------------------------------- (Rupees) ------------------------------------------------------------------------- %Owned

Leasehold improvements (Building's fixtures) 5,532,800 9,635,184 15,147,084 3,501,257 1,464,987 4,945,344 10,201,740 20%

(20,900) (20,900)

Office equipment 4,622,394 6,625,845 11,222,353 3,563,261 911,152 4,450,877 6,771,476 20%(25,886) (23,536)

`Furniture and fixture 6,166,279 7,391,458 13,262,839 4,888,124 1,166,492 5,765,581 7,497,258 20%

(294,898) (289,035)

Computers 20,265,608 3,347,755 23,613,363 15,668,909 2,737,136 18,406,045 5,207,318 33%-

Vehicles 34,319,934 5,998,314 37,071,598 13,234,294 5,228,987 16,047,386 21,024,212 20%(3,246,650) (2,415,895)

70,907,015 32,998,556 100,317,237 40,855,845 11,508,754 49,615,233 50,702,004(3,588,334) (2,749,366)

6.2 Intangible assetsCOST AMORTISATION Book value Rate of


Additions /Transfers



Charge for theyear


amortisation

------------------------------------------------------------------------- (Rupees) -------------------------------------------------------------------------Computer software

2019 8,260,373 11,631,389 19,891,762 7,353,465 1,041,211 9,239,781 10,651,981 33%

2018 7,666,634 593,739 8,260,373 6,587,797 765,668 7,353,465 906,908 33%

Other AssetsAs at September 30, 2019

Note 7

September 2019 December 2018

7.1 Advance for Expenses -Advances for Business purpose (Staff) 7,799,385 1,813,319 -Advance against Salary - -

7,799,385 1,813,319

7.2Advance to Suppliers 4,988,682 3,092,577

4,988,682 3,092,577

7.3 Deposits -Security Deposit Rent 3,558,416 3,158,416 -BRR - Locker 3,000 3,000 -Drinking Water 7,800 7,800 -Club 4,030 4,030 -Central Depository Company Ltd. 83,215 83,215

3,656,461 3,256,461

7.4 Accrued Income -Advances 82,765,862 23,161,223 -Placement with 'Financial Institutions 13,871,514 - -Pakistan Investment Bonds 213,096 23,773 -Investments in CODs - - -Investments in TDRs 2,330,896 28,912,723

99,181,368 52,097,719

7.5 Pre-payments & others -Rent 36,836,077 14,451,747 -Insurance 2,429,927 1,017,543 -Others 9,740,371 1,097,663

49,006,375 16,566,953

7.6 Loan to Staff -House Loan 5,738,068 6,086,925 -Vehicle Loan 1,130,856 1,290,950 -Personal Loan 5,983,318 2,641,065

12,852,242 10,018,940

7.7 Advance taxation (Payments less provision) 8,573,387 -

7.7 Others Receivables 594,788 210,806

7.8 UBL Omni Receivable 9,523,027 425,301

7.9 Receiveable from LOLC 1,679,011 630,423

7.10 Insurance Claim Receivable 4,116,564 1,868,134

Grand Total 201,971,290 89,980,633

DepositsAs at September 30, 2019

Note 9

Type of Deposits September 2019 Dec 2018

-Current Accounts 6,615,233 6,603,709 -Saving Accounts 85,193 60,592 -Certificates of Deposit 120,000 120,000

Total 6,820,426 6,784,301-

Other LiabilitiesAs at September 30, 2019

Note 10

Other Liabilities September 2019 Dec 2018

Payable to Vendors & others 12,959,851 2,318,480Payable to LOLC 1,764,199 8,416,588Sindh Workers welfare fund payable - 907,803Bank Charges Payable 1,800,000 -Auditor's Remuneration 780,372 595,623Funeral Charges payable 10,000 10,000Profit on Deposits 61,517,146 75,955Compensated Absences 4,865,355 4,665,355Advance from Customer (Funding Account) 89,421,547 76,171,390Gratuity 7,378,737 7,078,737Lease Obligation 44,783,503 -Insurance payable-Cr.Life/Borrower Death Protection 4,248,417 3,970,019Leave Fare Assistance 544,329 1,875,286Sales tax/Withholding Taxes payable 5,419,411 7,983,850Current taxation (provisions less payments) 2,357,646Total 235,492,866 116,426,732

Borrowing from SBPAs at September 30, 2019

Note 11 September 2019 Dec. 2018

Borrowing from SBP 1,982,284,483 -1,982,284,483 -

-

Break Down of Administrative ExpensesFor the Period ended September 30, 2019

Note 12

Administrative Expenses September 2019 Dec 2018

12.1 SALARIES & OTHER BENEFITS 184,362,274 173,765,399

12.2 OTHER ADMINISTRATIVE EXPENSES

Rent Expenses 14,498,057 24,972,454Repairs/ Maintenance & Renovation 4,963,998 6,077,605Vehicle Running 2,516,903 951,455Traveling & Boarding 13,031,746 15,423,584Advertisement & Publicity 1,310,002 1,444,144Communication 10,688,582 6,169,694Insurance 7,843,079 8,631,128Electricity / Water 3,242,170 5,050,543Printing and Stationery and Photocopy 4,148,029 4,412,889Software, Internet & IT Supplies 9,774,208 7,729,068Office Supplies 678,507 1,006,499Training 5,382,575 8,470,820Sales Promotion Expense 5,796,530 7,898,240Consultancy Charges 1,707,175 1,933,061Depreciation 14,528,162 11,508,754Depreciation - RoU 16,826,655 -Amortization 1,335,991 550,325Legal & Professional 3,083,102 2,716,262Auditors remuneration 724,579 1,706,889Rates, taxes & Others 1,112,206 1,387,604Director Fee 915,200 775,000Archiving Expense 761,370 581,547Office Security expenses 11,069,012 11,935,385Entertainment expenses 404,728 1,280,164Bank charges and others 6,890,293 3,236,578Nadra Verification 2,394,796 610Borrowing Cost - IFRS 16 4,048,311 -Membership Fees & Subscription * 12.2.1 535,341 934,915Other ** 12.2.2 5,392,099 7,926,961

155,603,405 144,712,178Total 339,965,679 318,477,577

12.2.1 Membership Fees & Subscription *News Papers and magazine charges 21,007 349,004Club subscription 54,655 61,770CDC fee (425,606) 357,827Membership Fee 885,285 127,289SECP charges - 39,025Total 535,341 934,915

12.2.2 Other Expenses **Kitchen expenses 1,732,315 2,020,050Borrowers' Death Protection - 3,719,919Other expenses 3,659,784 2,186,382Total 5,392,099 7,926,961

management accounts for thenine months ended...

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