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CJSC SPITAMEN BANK

FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2OT4

Ernst & Young Ford Rhodes Sidat HyderChartered AccountantsProgressive Plaza, Beaumont RoadP.O. Box 15541, Karachi75530Pakistan

Tel: +9227 3555 0007-11Fax:+922L 3558 1955eyfrsh.khi@pk.ey.comey.com/pk

HY f e t +9227 3565 0007-1 1Fax: +9227 3568 1965ey f r sh .kh i@pk .ey .comey .com/pk

Buildinq a betterworkin{ world

Independent Audltors' Report

To the Management Board of the Closed Joint Stock Company Spitamen Bank'

We have audited the accompanying financial statements of 'Closed Joint Stock Company SpitamenBank'(the Bank), which comprise the statement of f inancial posit ion as at 31 December ZOL4, and thestatements of comprehensive income, cash flow and changes in equity for the year then ended, andnotes, comprising a summary of signif icant accounting policies and other explanatory information.

Managemenf 's Responslbility for the Financlal Sfafemenfs

Management is responsible for the preparation and fair presentation of these financial statements inaccordance with International Financial Reporting Standards, and for such internal control asmanagement determines is necessary to enable the preparation of f inancial statements that are freefrom material misstatement, whether due to fraud or error.

Aud itor's Respons i bl ll ty

Our responsibil i ty is to express an opinion on these financial statements based on our audit. Weconducted our audi t in accordance with tnternat ional Standards on Audit ing. Those standards requirethat we comply with ethical requirements and plan and perform the audit to obtain reasonabteassurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures inthe financial statements. The procedures selected depend on the auditor's judgment, including theassessment of the risks of material misstatement of the financial statements, whether due to fraud orerror. In making those risk assessments, the auditor considers internal control relevant to the entity'spreparation and fair presentation pof the financial statements in order to design audit procedures thatare appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the entity's internal control. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of accounting estimates made by management, aswell as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour qual i f ied audit opinion.

Basls of gualified opinlon

We did not observe the cash count as at 31 December 2Ot4 as we were engaged as auditors of theBank after the year ended 31 December 2QL4. Further, we were not able to satisfy ourselves as to theexistence of the cash held by the Bank by other means. Accordingly, we were unable to determinewhether any adjustment might be necessary to the cash in hand as at 31 December ZOt4

Quallfied Opinion

In our opinion, except for the possible effects of the matter described in the Basis for Qualif ied Opinionparagraph, the financial statements present fairly, in all material respects, the financiat posit ion of the'Cfosed Joint Stock Company Spitamen Bank' as at 31 December 2QL4, and its f inancial performanceand its cash flows for the period then ended in accordance with International Financial ReportingS tandards . n . . lWU*

t '

Ernst & Young Ford Rhodes Sidat HyderChartered AccountantsProgressive Plaza, Beaumont RoadP.O. Box 15547 , Karach i75530Pakistan

II

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Other Matter

The flnancial statements of the B.1nk for the year ended 31 December 2013 were audlted by anotheraudltor who expressed an unmodifled oplnion on those statements on 10 September 2O!4.

2*4\LY-AJAJ"^1W I e\Chartered Accountants

-

Engagement Partner: Omer Chughtal

Date: 08 June 2Ol5

Karachl, Pakfstan

A member tirm of Ernst & Young Global Limited

1

&,IC IPITATEN BANK

ITATE]f, E]IT OF COTIPRE}IENEIVE INCOTE

FOR TIIE VEAR ENDED !{ DECETBER 20'14

lnterest incomeInterest exPense

(Provision) / reversal of provision againstloans to customers

Net interest income

Foreign exchange gain - netFee and commission income - netDividend incomeOther incomeNet operating income

Operating expensesProfit before tax

Taxation

Profit for the Year after taxation

Other comPrehensive income

Tota|comprehensiveincomefortheyearaftertaxation

The annexed notes 1 to 28 form an integral parl of these financial statements'

Note 31 December2014

13.1 (6 ,314)7,734

26,7285,613

719

32.42140,155

9 16,44723,708

10 (6,508)

17,200

re

56

(TJS'000)

31,005 15,358

- (16,95-7) . g'g?)- 14 ,048 11 ,706

| 2 , 1 7 3 |I s ,411 |I Il lI 1 1 |

. 5,q9517,767

78

31 December2013

46612,172

7,0541 0 , 7 1 3

(2,676)

'8,037

-g':ob?- - - - - .

' ! d

ffi

ASSETS

Cash in hanGn6alancesarith thNationaBank oflaj ikistan

Due from banksLoans to customerslnvestmentPropertY and equiPmentIntangible assetsOther assetsTotal assets

LIABILITIES AND EQUIW

LIABILITIESDepositsBorrowingsDue to banksTax paYableOther liabilitiesTotal liabilities

EQUIWShare caPitalAdditional Paid-in caPitalGeneral ReserueRetained earningsTotal equitY

TOTAL LIABILITIES AND EQUIW

CONTINGENCIES AND COMMITMENTS

The annexed notes 1 to 2g form an integral part of these financial statements'

2

G'tG SP]TATIN BANK

tTATETEIIIT OF FINANCIAL FOSITTOI.I

AS AT t{ DECETBER 2O"4

1 11 21 31 41 51 61 7

1 81 9

Note 31 December 31 December2014 2013

(TJS'o0o)

205,3911,254

138,711714

22,9399,3312,120

380-460

47,24141,23478,420

7 1 414,8012,966

837re

20

52,227246,595

24,989

182303,996

53,622217140

72,20851,799

2202,425

305ffi

5 0 , 1 1 4217140

8,785

76,464 59,256

21

K,#"ffi

3

GJ$G gPITAMEN BANK

STATEMENT OF CAEH FLOW

FOR THE YEAR ENDED 3{ DECEMBER 2014

Note 31 December2014

31 December20'13

(TJS'000)

CASH FLOWS FROM OPERATING ACTIVITIES

Profit before tax

Adjustments for non cash items

Depreciation and amortization expense

lnterest expense on borrowings

Unrealized exchange loss

(Provision; I reversil of provision against loans to customers

Loss on disposal of property and equipment

(lncrease) / decrease in assets:

Due from banksMandatory reserveLoans to customersOther assets

lncrease / (decrease) in l iabi l i t ies:

DePositsDue to banksAccounts payable and other l iabt l i t ies

Taxes Paidlnterest Paid on borrowtng

Net cash (used in) / genlrated from operating activit ies

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sales of property and equipment

Purchase of intangible assets

Purchase of properly and equipment

Net cash used in investing activit ies

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from borrowings

lssuance of share caPital

Net cash generated from financing activit ies

Net increase in cash and caslr equivalents durrng the year

Cash and cash equivalents at beginning of the year

C a s h a n d c a s h e q u i v a | e n t s a t e n d o f t h e y e a r

The annexed notes 1 to 2g form an integral part of these financial statements'

23,708

1 , 1 0 514,72216,893

6,3141 4

1 0 , 7 1 3

9242 , 1 9 9

58466

514,366

5,865

25

r---5ol @lI t2,3s2)l I (271)lI ts6,6o5)l | (63'633)l|

' r r .zesr l | .=(199) l--,990) (40'644)

f .-(

1J- e I o il [--- 6i3 s-? 1 II (218)l | 220 |I i r z g r l | = , ? 1 ? trc11 64J04

(3,944) (3Bo)t14.722t l?.ie?)(46,221) rc'zn t

r---nl=-RlL;*rt-ii,?idtI l

1 7 7 ' 9 1 0 c r ' / ' t r

79,249

8 5 , 1 1 5

4

CJSC SPITAMEN BANK

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 3{ DECEMBER 2014

Share Additional G"neralcapital Paid-in reserye

capit{ ffi

Retainedearnings

Total

Bafances at 31 December 2012

Total comprehensive income for the year

Balances at 31 December 2013

lssuance of ordinary share caPital

lssued as bonus shares

Total comprehensive income for the year

Balances at 31 December 2014

50,114 217 140

-

748

8,037

6ffi'- -de-rc-

8

51,219

8,037

50 ,114

I

3,500

217

(3,500)

17,200 17,200

f f i r c# = - F

The annexed notes 1 to 29 form an integral part of these financial