Annual Report14

Quaid-e-Azam on Educational Policy

In the name of Allah, the Beneficent, the Merciful

If we are to make any real, speedy and substantial progress, we mustbring our educational policy and programme on the

lines suited to the genius of our people, consonant with our history and culture, and having regard to the modern conditions and vast development that have taken place all over the world What we have to do is to mobilize our people In short, we have to build up the character of our future generations which means highest sense of honour, integrity, seless service to the nation, and sense of responsibility, and we have to see that they are fully qualied or equipped to play their part in the various branches of economic life in a manner which will do honour to Pakistan.

Quaid-e-Azam

Excerpt from Message to All Pakistan

Education Conference,

Karachi, 27 November 1947

03

Allama Moh

ammad

Iqba

l

God! Grant me knowledge

The search for rational foundations in Islam may be regarded to have begun with the Prophet (PBUH) himself. His constant prayer was: God! Grant me knowledge of the ultimate nature of things!

Allama Mohammad Iqbal

Excerpt from Reconstruction of Religious Thought In Islam,

Lecture 1: Knowledge and Religious Experience

04

05

Chairmans M

essage

PEEF empowering the youth of Punjab

At the very outset, I want to express my pleasure at the rapid strides taken by the Punjab Educational Endowment Fund (PEEF) in just ve years since its inception. More than 60,000 scholarships and

counting in only half a decade is a remarkable achievement that any endowment fund anywhere in the world can be proud of. All this has been accomplished by installing systems that makes it impossible to disregard merit, is all the more signicant.

When the idea of PEEF was oated in late 2008, the Punjab Government immediately decided to adopt and sponsor it because it was already focused on empowering the youth of the province by investing in education and providing opportunities to the impoverished but deserving students to realize their potential and carve a better destiny for themselves and this nation.

This exactly was the vision with which the PEEF was founded: its guiding light was not to be a mere scholarship fund but to change the lives and the horizon of the deprived and the under-privileged students by aording them an opportunity to move up the ladder in society by educating themselves.

I am quite positive that the PEEFs impact, which has already started to reect massively with its rst graduates passing out from a variety of centres of excellence in this country and some from quality universities abroad as well, shall be quite pronounced in the years to come.

Muhammad Shahbaz Sharif

Chief Minister, Punjab

The PEEFs guiding light was not

to be a mere scholarship fund

but to change the landscape and

the horizon of the deprived and

the under-privileged students by

aording them an opportunity to

move up the ladder in society by

educating themselves.

Going from strength to strength

From naught to 60,000 in ve years, the gures speak for themselves. But more than mere cold statistics, it is by now quite obvious that the long-term eect of PEEFs intervention in changing lives of not just the recipients of scholarships but impacting their siblings

and families is likely to be tremendous. And, this point needs to be noted, given that almost each of the deserving scholars coming from nancially challenging circumstances, without PEEF reaching out to them, their educational careers may have come to an abrupt end.

Another signicant development is that the ecacy of its programme and transparency of its systems are being acknowledged by highly reputed international donor agencies like DFID (UK Aid). The DFID has aligned its educational assistance programme in this country with PEEF. The synergy thus created is providing meaningful support to female education in the 11 most backward districts of Southern Punjab.

As PEEF embarks on its sixth year, like always, it is resetting the bar even higher. For the nancial year 2014-15, it is envisaged that the PEEF scholarships shall touch the high watermark of 80,000 scholars.

With empowerment of talented youth otherwise lacking resources to follow its dreams as its cornerstone, this endeavour that aims at transforming the educational landscape in Punjab would not have materialized without the unqualied backing and patronage of its founding chairman, Chief Minister Muhammad Shahbaz Sharif.

In conclusion, acknowledgement is due to the lean but highly motivated Team PEEF imbued with the spirit of making a dierence. They have all contributed towards the continuous and steep upwardly mobile trajectory of the PEEF performance graph. May they continue to serve and meet organizational objectives in this vital sector in national development with dedication!

Dr. Muhammad Amjad Saqib

Vice-Chairman

As PEEF embarks on its sixth year,

like always, it is resetting the bar

even higher. For the nancial

year 2014-15, it is envisaged that

the PEEF scholarships shall touch

the high watermark of 80,000

scholars.

Vice-Cha

irman

s Message

06

07

Contents

Vision/Mission Statement 08

Objectives of PEEF

Governance Structure 09

General Body 10

Board of Directors 11

Functional Committees 12

Directors Report June 30, 2014 14

Key Operations & Financial Data 16

Statement of Compliance - Aug 2014 17

Proactive System for Awarding Scholarships 23

Scholarship Policy 2014 24

Scholarship Allocation 2014 25

Categories of Scholarship 26

E-Scholarship Payment 29

Master Level Scholarships 30

University Wise Scholarship Awarded 31

Scholarship Update 32

Chamalang Beneciaries Education Program (CBEP) 33

Youth Development Centre (YDC), Punjab House, Murree 34

Detail of training sessions conducted July 2013 to June 2014 35

PEEF-DFID Scholarships 36

Finance 37

Vision Statement

Mission Statement

Building a critical mass of human capital, participating in nation building; through provision of equitable opportunities to less privileged but academically brilliant boys and girls in Punjab.

08

Creation of a pool of talented Pakistani youth from less privileged backgrounds; contributing towards economic and social development to realize the dream of a moderate, progressive and

prosperous Pakistan.

Objectives of PEEF

09

PEEF has been established with the following objectives:

Scholarship for talented and less privileged students to bring them at par with the more fortunate ones. Creation of a critical mass of talented youth for the development of society. Identication and support to extremely marginalized students through special quotas. Supporting the less privileged but outstanding students of other provinces, including AJK, ICT, FATA & Gilgit-Baltistan.

Governance Structure

In conformity with Articles

of Association of PEEF, the

Governance Model of PEEF

is illustrated below:

General Body(21 Members)

Board of Directors(11 Members)

Executive Committee(5 Members)

Functional Committees(7 Committees)

Gene

ral B

ody

A General Body comprising of 21 members nominated by the Government of Punjab is the supreme authority to act as the guiding force behind the Board of Directors. This body includes educationists, elected representatives, retired civil servants, business individuals and representatives from

Government and civil society.

Following is the list of members of the General Body of PEEF:

Sr. No. Name Profession / Designation

1 Mr. Muhammad Shahbaz Sharif Chief Minister, Punjab

2 Dr. Muhammad Amjad Saqib Vice Chairman

3 Mr. Ahsan Iqbal Member National Assembly

4 Mr. Muhammad Baligh-ur-Rehman Member National Assembly

5 Ms. Anusha Rehman Khan Member National Assembly

6 Ms. Bushra Anjum Butt Member Provincial Assembly, Punjab

7 Qazi Adnan Farid Member Provincial Assembly, Punjab

8 Mr. Raja Muhammad Anwar Chairman, Punjab Education Foundation

9 Justice (R) Aamer Raza Khan Former Judge of the Lahore High Court

10 Lt. Gen. (R) Muhammad Akram Khan Vice Chancellor, UET, Lahore

11 Mr. Mehr Jiwan Khan Former Federal Secretary

12 Dr. Ali Cheema University Professor

13 Dr. Shahid Siddiqui University Professor

14 Ms. Seema Aziz Business Lady/Philanthropist & Education Manager

15 Ms. Nusrat Jamil Social Activist

16 Dr. Muhammad Ajmal Khan COO, Punjab Healthcare Commission

17 Ex-Ocio Additional Chief Secretary, Govt. of Punjab

18 Ex-Ocio Secretary Finance, Govt. of Punjab

19 Ex-Ocio Secretary Higher Education, Govt. of Punjab

20 Ex-Ocio Secretary Education (Schools), Govt. of Punjab

21 Ex-Ocio Chairman PITB

10

11

Board of Directors

The qualications of members of the Board of Directors (BOD), their roles, responsibilities, functions, term and the frequency of meetings of the Board, procedures to circulate minutes of meetings, communication and requirements to attend Board meetings are in accordance with Memorandum

and Articles of Association of The Punjab Educational Endowment Fund.

At present, the Board of Directors consist of the following eleven members headed bythe Chairman, Mr. Muhammad Shahbaz Sharif, Chief Minister, Punjab:

1 Mr. Muhammad Shahbaz Sharif, Chief Minister, Punjab (Chairman)

2 Dr. Muhammad Amjad Saqib (Vice Chairman)

3 Mr. Muhammad Baligh-ur-Rehman, MNA (Director)

4 Ms. Anusha Rehman Khan, MNA (Director)

5 Ms. Bushra Anjum Butt, MPA (Director)

6 Justice (R) Aamer Raza Khan (Director)

7 Ms. Nusrat Jamil, Social Activist (Director)

8 Dr. Muhammad Ajmal Khan, COO, PHC (Director)

9 Secretary Finance, Govt. of the Punjab (Ex-Ocio) (Director)

10 Secretary Higher Education, Govt. of the Punjab (Ex-Ocio) (Director)

11 Chairman PITB (Ex-Ocio) (Director)

Functio

nal Com

mittees

Introduction

The Board of Directors (BOD) has constituted various functional committees in accordance with the Articles of Association to guide and advise the organization on various issues and policy matters. The rationale behind forming these committees is to guide, assist, add value and strengthen the organization in its working and accomplishing

PEEFs Vision and Mission statements. These committees provide pedestal for good governance, transparency and check & balance which are necessary for an eective system of internal control and risk management. They also capitalize on the specic expertise and experience of the individual members which contributes to the renement of the operational policies and expedites the decision making process on dierent issues.

Objectives & Working:

i. Executive Committee:The main objective of this committee is to provide guidance and support to the company on strategic and tactical

issues as they arise from time to time between Board meetings.

ii. Procurement Committee:Procurement Committee approves various management purchase requests as per the authority given in the Delegation

of Financial & Administrative Powers. Along with approval, the Committee monitors that the management has explored all necessary ways and means of obtaining cost benecial services or products.

iii. Recruitment & HR Committee:Recruitment & HR Committee is constituted to assist the Board of Directors in fullling its obligations relating to

recruitment including performance, compensation, succession and safety matters along with ensuring that it provides strategic direction to the employees of the organization. The Committee also has to ensure that human resource of the PEEF contributes eectively towards the achievement of the vision of the organization.

iv. Budget & Finance Committee:The Committee is expected to make budget and nance related decisions, broad based and transparent with built

in controls, it aims to seek opinion from experts, sta and professional agents to review and analyze performance on a quarterly basis and make recommendations to enhance eciency.

v. Fund Management Committee:Fund Management Committee oversees successful and prudent operation of the Punjab Educational Endowment

Funds current income and potential income sources. Its main responsibilities are divided into two domains i.e. Fund Generation and Investment.

vi. Scholarship Management Committee:Scholarship Management Committee oversees the management of the Scholarship Programs run under the umbrella

of PEEF. These scholarships are distributed among students of all districts of Punjab along with a special quota for other provinces & Punjab Board of Technical Education (PBTE), which necessitates rigorous management and logistics arrangements. This also involves timely coordination between PEEF and its stakeholders including Punjab Examination Commission (PEC) and all Boards of Intermediate and Secondary Education (BISE) in Punjab, Focal Committees in each district, participating institutions, students, etc.

12

vii. Rules, Procedures and Monitoring Committee:Rules, Procedures and Monitoring Committee has been constituted for the purpose of developing, implementing and

review of administrative, operational, nancial and MIS policies, procedures and guidelines and further to monitor and ensure compliance with all such policies in accordance with the Vision and Mission statements of PEEF.

viii. Audit Committee:The primary function of the Audit Committee is to assist the Board of Directors in fullling its duciary responsibilities by

overseeing the organizations nancial reporting, its operational functions related in particular to scholarship management and its disclosure activities, along with reviewing the overall policy framework from time to time.

Sr. No. Particulars No. of meetings held

1) General Body 7

2) Board of Directors 12

3) Executive Committee 21

4) Scholarship Management Committee 8

5) Rules, Procedures & Monitoring Committee

(formerly Rules of Business Committee) 7

6) Audit Committee 11

7) Procurement Committee 6

8) Fund Management Committee 11

9) Recruitment & HR Committee 14

10) Budget & Finance Committee 5

TOTAL: 102

Frequency of meetings (Status as on 30th June 2014):

13

Directors Re

port Ju

ne 30, 201

4

The directors are pleased to submit their statutory report together with audited nancial statements of The Punjab Educational Endowment Fund (PEEF) for the year ended June 30, 2014.

During the year under review, the company has achieved another milestone of disbursement of more than 60,000 scholarships, in aggregate, worth Rs.3,053 million.

The Company has also made signicant development during the year by signing an agreement with the Department for International Development (DFID), UK to support 27,500 needy and meritorious female students of eleven (11) districts of Punjab for Intermediate level education and 500 students of Gradation level education through following selected Centre of Excellences (CoEs). The total estimated amount of grant under the agreement is Rs.1632.94 million spread over a period of ve years.

i. LUMS ii. NUST iii. GIKI iv. FAST- Lahorev. COMSATS - Lahorevi. COMSATS - Islamabadvii. NAMAL, Mianwali

With the budgetary allocation of additional Rs.2.00 billion by the government of Punjab for the FY 2014-15, PEEF is going to reach more than 80,000 scholarships by the end of next Financial Year.

The Directors are pleased to state that:a) The Board has complied with relevant principles of Corporate Governance, and has identied the rules that

have not been complied with, the period in which such non-compliance continued, and reasons for such non-compliance;

b) The nancial statements, prepared by the management of the Company, present its state of aairs fairly, the result of its operations, cash ows and changes in funds and reserves;

c) Proper books of account of the company have been maintained;d) Appropriate accounting policies have been consistently applied in preparation of nancial statements and

accounting estimates are based on reasonable and prudent judgement;e) The system of internal control is sound in design and has been eectively implemented and monitored; andf) The appointment of the Chairman and other members of the Board and the terms of their appointment are

in the best interests of the Company as well as in line with the best practices. None of the Director is being paid any remuneration.

g) PEEF has received funds amounting to Rs.9.00 billion from the Govt. of Punjab upto 30th June, 2014;h) Key operating and nancial data of last six (5) years is annexed;i) The value of investments (at cost) of Gratuity Fund as at June 30, 2014 is Rs. 14,297,192/-j) During the year under review two (2) meetings of the Board of Directors were held and the attendance of

each Director is as under:

14

15

Name of Directors No. of Meetings

Attended

1. Mr. Muhammad Shahbaz Sharif, Chief Minister, Punjab (Chairman) 1

2. Dr. Muhammad Amjad Saqib, Vice Chairman 2

3. Mr. Muhammad Baligh-ur-Rehman, MNA -

4. Ms. Anusha Rehman Khan, MNA -

5. Ms. Bushra Anjum Butt, MPA -

6. Justice (R) Aamer Raza Khan, Former Judge 2

7. Ms. Nusrat Jamil, Social Activist -

8. Dr. Muhammad Ajmal Khan, COO, PHC 1

9. Secretary Finance, Govt. of Punjab (Ex-ocio) 2

10. Secretary Higher Education, Govt. of Punjab (Ex-ocio) 1

11. Chairman, PITB (Ex-ocio) 2

Directors Report June 30, 2014(The Board granted leave of absence to the directors who could not attend the meetings due to pre-occupation.)

Ms Bushra Anjum Butt, MPA and Dr. Umar Saif, Chairman, PITB were nominated as Directors in place of Mr.

Shahjahan Ahmad Bhatti, Ex-MPA and Dr. Jawaid Abdul Ghani, Ex-Chairman, PITB, respectively, on 28-01-

2014

AuditorsThe auditors, M/s. Ernst & Young Ford Rhodes Sidat Hyder, Chartered Accountants, retire and being eligible, oer

themselves for re-appointment for FY 2014-15. The Audit Committee and the Board of Directors have endorsed their re-appointment for Members consideration at the forthcoming Annual General Meeting.

AcknowledgementWe are grateful to Allah, The most Merciful, with whose benevolence we have collectively been able to progress and

achieve the objectives of the Company. We would also like to thank all our stakeholders who have helped us come this far.

For and on behalf of the BoardPlace: LahoreDate: November 21, 2014

Dr. Kamran ShamsChief Executive Ocer

16

Key Operations & Financial Data

Rs. in 000

Year 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Particulars

Endowment Fund 2,000,000 4,041,681 4,114,692 6,191,762 7,284,772 9,377,772

Income Proceeds from Endowment Fund

79,633 456,426 736,493 816,435 923,921 927,937

Amount of Scholarships Disbursed 22,461 250,887 361,605 706,681 748,370 790,313

Number of Scholarships Awarded 5,326 5,484 6,982 13,345 9,952 18,621

Key Operating and Financial Data Since Inception years

Punjab Eductional Endowment Fund (PEEF)

17

Statem

ent o

f Com

pliance

Statement of Compliance with the Public Sector Companies (Corporate Governance) Rules, 2013

Name of company: The Punjab Educational Endowment Fund (PEEF) Name of the line ministry: Higher Education Department, Govt. of Punjab For the year ended: 30th June, 2014

I. This statement is being presented to comply with the Public Sector Companies (Corporate Governance) Rules, 2013 (hereinafter called the Rules) issued for the purpose of establishing a framework of good governance, whereby a public sector company is managed in compliance with the best practices of public sector governance.

II. The company has complied with the provisions of the Rules in the following manner:

Sr. No. Provision of the Rules Rule Y N

1. The independent directors meet the criteria of independence, 2(d) as dened under the Rules2. The Board has the requisite percentage of independent directors. 3(2) At present the board includes:

3. A casual vacancy occurring on the board was lled up by the 3(4) directors within ninety days4. The directors have conrmed that none of them is serving as a 3(5) director on more than ve public sector companies and listed companies simultaneously, except their subsidiaries5. The appointing authorities have applied the t and proper criteria 3(7) given in the Annexure in making nominations of the persons for e lection as board members under the provisions of the Ordinance6. The chairman of the board is working separately from the 4(1) chief executive of the Company

Category Names Date of

appointment

Independent 1) Dr. Muhammad Amjad Saqib 29-06-2010Directors 2) Justice (R) Aamer Raza Khan -do- 3) Ms. Nusrat Jamil -do- Executive NILDirectors Non- 1) Mr. Muhammad Shahbaz Sharif, CM, Punjab 29-06-2010Executive 2) Mr. Muhammad Baligh-ur-Rehman, MNA -do-Directors 3) Ms. Anusha Rehman Khan, MNA -do- 4) Ms. Bushra Anjum Butt, MPA 28-01-2014 5) Dr. Muhammad Ajmal Khan 29-06-2010 6) Secretary Finance, Govt. of Punjab -do- 7) Secretary Higher Education, Govt. of Punjab -do- 8) Chairman PITB, Govt. of Punjab 28-01-2014

18


7. The chairman has been elected from amongst the independent directors 4(4) 8. The Board has evaluated the candidates for the position of the chief 5(2) executive on the basis of the t and proper criteria as well as the guidelines specied by the Commission9. The company has prepared a Code of Conduct and has ensured that 5(4) appropriate steps have been taken to disseminate it throughout the company along with its supporting policies and procedures, including posting the same on the companys website. (www.peef.org.pk) (b) The Board has set in place adequate systems and controls for the identication and redressal of grievances arising from unethical practices.10. The Board has established a system of sound internal control, to ensure 5(5) compliance with the fundamental principles of probity and propriety; objectivity, integrity and honesty; and relationship with the stakeholders, in the manner prescribed in the Rules11. The Board has developed and enforced an appropriate conict of interest 5(5)(b) (ii) policy to lay down circumstances or considerations when a person may be deemed to have actual or potential conict of interests, and the procedure for disclosing such interest12. The Board has developed and implemented a policy on anti- corruption to 5(5)(b) (vi) minimize actual or perceived corruption in the company13. (a) The Board has ensured equality of opportunity by establishing open 5(5)(c) (ii) and fair procedures for making appointments and for determining terms and conditions of service. (b) A Committee has been formed to investigating deviations from the companys code of conduct.14. The Board has ensured compliance with the law as well as the companys 5(5)(c) (iii) internal rules and procedures relating to public procurement, tender regulations, and purchasing and technical standards, when dealing with suppliers of goods and services, in accordance with the PPRA Rules15. The board has developed a vision or mission statement, corporate strategy 5(6) and signicant policies of the company. A complete record of particulars of signicant policies along with the dates on which they were approved or amended has been maintained16. The board has quantied the outlay of any action in respect of any service 5(8) delivered or goods sold by the Company as a public service obligation, and has submitted its request for appropriate compensation to the Government for consideration17. a) The board has met at least four times during the year. 6(1) b) Written notices of the board meetings, along with agenda and working papers, were circulated at least seven days before the meetings. 6(2) c) The minutes of the meetings were appropriately recorded and circulated 6(3) 18. The board has carried out performance evaluation of its members, including 8 the chairman and the chief executive, on the basis of a process, based on specied criteria, developed by it. The board has also monitored and assessed the performance of senior management on annual/half-yearly/quarterly basis.

19


19. The board has reviewed and approved the related party transactions placed 9 before it after recommendations of the audit committee. A party wise record of transactions entered into with the related parties during the year has been maintained20. The board has approved the prot and loss account for, and balance sheet as 10 at the end of, the rst, second and third quarter of the year as well as the nancial year end, and has placed the annual nancial statements on the companys website. Monthly accounts were also prepared and circulated amongst the board members21. All the board members underwent an orientation course arranged by the 11 company to apprise them of the material developments and information as specied in the Rules.22. (a) The board has formed the requisite committees, as specied in the Rules. 12 (b) The committees were provided with written term of reference dening their duties, authority and composition. (c) The minutes of the meetings of the committees were circulated to all the board members. (d) The committees were chaired by the following non-executive directors:

23. The board has approved appointment of Chief Financial Ocer, Company 13/14 Secretary and Chief Internal Auditor, with their remuneration and terms and conditions of employment, and as per their prescribed qualications24. The company has adopted International Financial Reporting Standards 16 notied by the Commission under clause (i) of sub- section (3) of section 234 of the Ordinance25. The directors report for this year has been prepared in compliance with the 17 requirements of the Ordinance and the Rules and fully describes the salient matters required to be disclosed26. The directors, CEO and executives do not hold any interest in the shares of the 18 company other than that disclosed in the pattern of shareholding27. A formal and transparent procedure for xing the remuneration packages of 19 individual directors has been set in place. The annual report of the company contains criteria and details of remuneration of each director28. The nancial statements of the company were duly endorsed by the chief 20 executive and chief nancial ocer, before approval of the board

Committee Number of Name of

members Chair

Audit Committee 5 Ms. Bushra Anjum Butt

Risk Management 6 Senator Mohammad Ishaq DarCommittee

Human Resources 3 Dr. Muhammad Amjad SaqibCommittee

Procurement 3 Justice (R) Aamer Raza KhanCommittee

Nomination Committee Not Applicable

20


29. The board has formed an audit committee, with dened and written terms 21 of reference, and having the following members:

The chief executive and chairman of the Board are not members of the audit committee.30. The board has set up an eective internal audit function, which has an 22 audit charter, duly approved by the audit committee, and which worked in accordance with the applicable standards31. The company has appointed its external auditors in line with the 23 requirements envisaged under the Rules.32. The external auditors of the company have conrmed that the rm and 23(4) all its partners are in compliance with International Federation of Accountants (IFAC) guidelines on Code of Ethics as applicable in Pakistan33. The external auditors have not been appointed to provide non- audit 23(5) services and the auditors have conrmed that they have observed applicable guidelines issued by IFAC in this regard.34. The company has complied with all the corporate and nancial reporting requirements of the Rules.

Name of Category Professional

member Background

Ms. Bushra Anjum Butt LawMr. Ahsan Chughtai, Finance Mr. Muzaar Hashmi, Chartered AccountantMr. Farooq Hameed Chartered AccountantSecretary, Finance Department MBA

Dr. Amjad SaqibVice Chairman/Director

Dr. Kamran ShamsChief Executive Ocer

21Dr. Amjad Saqib

Vice Chairman/Director

Dr. Kamran Shams

Chief Executive Ocer

Explanation for Non-Compliance with the

Public Sector Companies (Corporate Governance) Rules, 2013

We conrm that all other material requirements envisaged in the Rules have been

complied with except for the following, towards which reasonable progress is being

made by the company to seek compliance by the end of next accounting year:

Sr.

No.

Rule /

Sub-Rule No.

Reasons for

non-compliance

Future course

of action

1) 3(2) All directors are nominee of the Govt. of Punjab.

As per Rules, the Board shall have 40% of its total members as Independent Directors within the rst two year of this notication i.e. up to August 2015.

The Govt. of Punjab will be requested to appoint Independent Directors to attain the requisite percentage.

2) 3(5) Ex-Ocio Directors of the Company hold directorships in other Public Sector Companies by virtue of their oce.

Fresh conrmations will be obtained from a Director as and when a new appointment is made.

3) 3(7) All directors are nominee of the Govt. of Punjab and are appointed / nominated in accordance with Section(s) 163 and 183(b) of the Companies Ordinance, 1984 and Articles of Association of the Company.

Fit and proper criteria as given in the Annexure will be communicated to the nominating authority for future nominations.

4) 4(4) Chief Minister Punjab is the ex-ocio Chairman of the Company.

5) 6(1) Two (2) Board meetings were held during the year 2013-14.

Compliance of quarterly Board meetings will be ensured in future.

6) 8 Board has carried out performance evaluation of the CEO and senior Management on annual basis.

Performance evaluation criteria for the Members of the Board of Directors, is being developed.

7) 11 Material information about training program was circulated amongst the Board, however, due to other commitments, the Directors could not attend the course.

Orientation courses for Board Members will be arranged, next year.

22

Review Report to the Members

On Statement of Compliance with the Public Sector Companies (Corporate

Governance) Rules, 2013

We have reviewed the Statement of Compliance with the Public Sector Companies (Corporate Governance) Rules, 2013 for the year ended 30th June, 2014, prepared by the Board of Directors of M/s The Punjab Educational Endowment Fund (PEEF) to comply with the provisions of the Rules.

Based on our review, nothing has come to our attention, except the following, which causes us to believe that the Statement of Compliance does not appropriately reect the Companys compliance, in all material aspects with the Public Sector Companies (Corporate Governance) Rules, 2013, as applicable to the Company for the year ended 30th June, 2014

City: LahoreDated: November 21, 2014

Signature (s) Chartered Accountants Engagement Partner

23

Proactive System for Aw

arding Scholarships

From acquiring data from a diverse range of sources [Punjab Examination Commission (PEC), all Boards of Intermediate & Secondary Education (BISEs) of Punjab and Federal Board of Intermediate & Secondary Education (FBISE), Islamabad], sifting through it with a ne toothcomb, compiling, checking, rechecking,

verifying and nally award of scholarships, the entire system is carefully crafted and diligently implemented. This system was indigenously developed by PEEF at its inception in 2009 and since then has been

continuously improved and perfected, with each year adding to the experience, thus ensuring delivery with ever greater eciency.

The PEEF approach is uniquely proactive, identifying prospective recipients on its own, strictly in accordance with prescribed systems and then delivering the scholarship to the deserving at his or her doorstep.

The PEEF reaches out to talented yet nancially disadvantaged student right down to Tehsil level, in order to ensure that nancial challenges do not deprive the meritorious youth from pursuing and fullling their academic ambitions. As a matter of policy, the PEEF facilitates both genders equally and without discrimination, aording them opportunities to fulll their dreams and aspirations so that every solution can play a pivotal role in national development.

From selecting to awarding scholarships to the deserving students PEEF adheres to the

following process, all along ensuring transparency, accuracy and convenience of the candidates:

a. The PEEF obtains data of students from PEC, all BISEs, FBISE, PBTE, and Provincial Education Departments based on the eligibility criteria outlined by the organization.

b. On receipt of students names, the PEEF dispatches letters to all shortlisted scholarship candidates.

c. A Scholarship Application Form accompanies the letter, to be lled by the short-listed students, veried by the institution where he/she is currently enrolled and dispatched back to PEEF.

d. All the received student information forms are scrutinized by PEEF for the nal selection and award of scholarship.

e. The PEEF enlists selected candidates and conrmation letters are sent out with copies to respective educational institutions and District Focal Committees for information and further necessary action.

f. The name of scholarship recipients are simultaneously uploaded on the PEEF website.

g. Scholarship stipend is disbursed on biannual basis through the educational institution where the scholar is enrolled.

h. The second tranche of scholarship stipend is released once the institution provides a satisfactory performance report about the students academic record, attendance and general conduct, etc.

24

Scho

larship Po

licy - 2

014

The salient features of the scholarships policy 2014 are briefed as under: 20,000 scholarships (Approx.) Proactive approach for the identication of PEEF scholars Scholarships awarded on the basis of the annual examination conducted at following FOUR levels; Graduation -tostudyatMasterlevel Intermediate -tostudyatGraduationlevel Matriculation -tostudyatIntermediatelevel Middle -tostudyatMatriculationlevel

More scholarships to 16 Less Developed Districts (LDDs) as compared to 20 Developed Districts of Punjab Determination of merit at tehsil level Equal number of scholarships to all tehsils in a district Equal number of scholarships for boys and girls 20% Special quota scholarships allocated to: OrphanChildren ChildrenofgovernmentservantsinBPS14 Childrenbelongingtominorityreligion SpecialChildren 694 Scholarships allocated for other provinces, Azad Jammu Kashmir (AJK), Federally Administered Tribal

Areas (FATA), Islamabad Capital Territory (ICT) & Gilgit-Baltistan (GB) 468 scholarship for Punjab Board of Technical Education (PBTE) 1095 scholarships for Centers of Excellence (CoEs)Eligibility criteria In order to be considered eligible for scholarship, the student must have: Atleast60%marksin2014(annual)examinations Securedadmissioninaregulareducationalinstitutionasafulltimestudentinthecurrentacademic

year (2014-15) MonthlyfamilyincomeofparentsfromallsourcesisequaltoorlessthanRs.15,000/-

25

Scholarship Allocation - 2014

Scholarship Scholarship Allocation PEEF Allocation DFID

Punjab Secondary Level 1,564 -Intermediate Level 2,346 8,500Graduation Level 2,346 -Master level 1,564 -Punjab Board of Technical Education (PBTE) 468 - Sub Total (A) 16,788Other Provinces/ Territories Baluchistan 480 -Khyber Pakhtunkhwa 63 -Sindh 63 -Gilgit Baltistan 25 -FATA 21 -AJK 21 -Islamabad Capital Territory (ICT) 21 - Sub Total (B) 694

Centre of Excellence (CEOs) Air University, Islamabad 20 -Bahria University, Islamabad 20 -Cadet College, Hassan Abdal 20 -COMSATS, Islamabad 10 25COMSATS, Lahore 10 25COMSATS , Lahore Dual Degree 6 -Daanish School Authority, Lahore 605 -Directorate of Sta Development (DSD), Lahore 50 -FAST University, Lahore 30 25FC College University, Lahore 20 -Ghulam Ishaq Khan Institute, Swabi 10 25Institute of Business Administration, Karachi 8 -Institute of Chartered Accountants of Pakistan (ICAP) 15 -Institute of Cost Management Accountants of Pakistan (ICMAP) 15 -Information Technology University (ITU) Punjab 76 - Lahore University of Management Sciences (LUMS) 30 10Military College, Sui-Balochistan 20 -Military College, Jehlum 20 -NAMAL College, Mianwali 15National University of Science & Technology, Islamabad 20 25Pak Turk Inc. Public School & College, Lahore 20 -Pakistan Air Force Public School, Sargodha 20 -Pakistan Institute of Fashion Designing, Lahore 10 -Sadiq Public School, Bawalpur 20 -University of Veterinary & Animal Sciences, Lahore 20 - Total 1095 150 Sub Total (C) 1245

Grand Total (A+B+C) 18,727

26

Catego

ries o

f Scholarship The Punjab Educational Endowment Fund (PEEF) scholarships have been classied into

three major categories:

1. Outreach Scholarship 2. Special Quota Scholarship3. Scholarships for students of private aliated institutions

1. OUTREACH SCHOLARSHIPS:

Process for Process for

Secondary Level Intermediate & Graduation Level

The data obtained from Punjab The data obtained from Boards of Intermediate and

Examination Commission (PEC) is Secondary Education (BISE) Punjab and Federal Board

sorted out on the basis of PEEF policy of Intermediate & Secondary Education (FBISE), Islamabad

is sorted out on the basis of PEEF policy

The data is sorted out on institution, Tehsil, District, and Gender wise to shortlist the eligible meritorious students

Intimation letters & scholarship application Intimation letters & scholarship application forms are

forms are sent to the shortlisted students sent to the shortlisted students at their home address

through the institutions last attended (top merit holders in each Tehsil)

(top merit holders in each Tehsil)

All the received scholarship application forms are recorded and scrutinized for further processing

The meritorious and deserving students are selected and Tehsil, Gender and Educational group wise merit award lists

are prepared for the award of scholarships. The selected students are also intimated about their PEEF scholarship

through intimation letters.

Lists of awardees are shared with District & Divisional Education Oces and also uploaded on PEEF website

(www.peef.org.pk).

Scholarships are awarded through the respective educational institutions where PEEF scholars are currently enrolled.

27

Categories of Scholarship

2. SPECIAL QUOTA SCHOLARSHIPS:

These scholarships are awarded in the below mentioned categories:

OrphanChildren ChildrenofgovernmentservantsinBPS14 Childrenbelongingtominorityreligion SpecialChildrenProcess for Process for


The District Focal Committee, Oce of the Newspaper advertisement is released for identication

EDO (Edu.) and DEO (SE) are requested to of meritorious students who have passed Matric and

identify students falling in the above Intermediate Annual Examination Punjab

mentioned Special Quota categories.

The applications received are scrutinized and eligible students are shortlisted against scholarships allocated

for each category.

Intimation letters & scholarship Intimation letters & scholarship

application forms are sent to the respective application forms are sent to

district/ focal oce. all shortlisted students.

All the received forms are scrutinized and veried.

District, Category & Gender wise merit/ award lists are prepared for the award of scholarships.


28

Catego

ries o

f Scholarship 3. SCHOLARSHIP FOR PRIVATE INSTITUTIONS:

Process for Process for


The data obtained from Punjab Passed Matriculation or Intermediate Examination

Examination Commission (PEC) is sorted held by Board of Intermediate and Secondary Education

out on the basis of PEEF policy (BISE) Punjab or Federal Board of Intermediate &

Secondary Education (FBISE), Islamabad in 2014 (annual)

Allstudentsofprivateailiatedinstitutions Onlythosestudentsofprivateailiatedinstitutionsareare eligible for PEEF scholarships. eligible for PEEF scholarships who have studied/availed

SchoolsAiliatedwithPunjabEducation scholarship/feeexemptionfromtheinstitution.Foundation(PEF) SchoolsAiliatedwithPunjabEducation Foundation (PEF)

Data is sorted District and Gender wise

Intimation letters & scholarship application forms are sent to the shortlisted students through the institutions last attended.

District, Category & Gender wise merit/ award lists are prepared for the award of scholarships.

Lists of awards are shared with District & Divisional Education Oces and also uploaded on PEEF website(www.peef.org.pk)


SCHOLARSHIP STIPEND RATE:

FOR STUDENTS STUDYING IN: DAY SCHOLARS BOARDERS

SECONDARY LEVEL 800 1,500

INTERMEDIATE 1,500 3,000

GRADUATION LEVEL (B.A, B.SC.) 2,500 4,000

PROFESSIONAL DEGREES, (MBBS, ENGINEERING) 3,000 4,500

MONTH

LY SCHOLA

RSH

IP (RS.)

PEEFScholarsenrolledunderthecategoryofBoardersin9DivisionalHeadQuartersofPunjabandSialkotareentitled to 10% additional boarding allowance.

29

E-Scholarship Payment

In the year 2013-14 PEEF awarded scholarships to DFID funded students through E-payment System.On successful and trouble free award scholarships through E-payment Board of Directors approved to follow E-payment mechanism for all the PEEF scholars for FY 2014-15. The scholarship stipend to the selected students will be paid electronically through Bank of Punjab.

Salient Feature of e-payment system are:

ScholarsareissuedPEEFscholarshipcardwithpictureandPEEFcodenumber Separatepincodeareissuedtoscholars Theheadofinstitutionshandoverthescholarshipcard&sealedenvelopebearingpincodetotheselected

scholars ThescholarspresentthescholarshipcardatthenearestbranchofBankofPunjabandtellthepincodetothe

teller/cashier Thetellerafterveriicationofthecredentialsofthescholarspaythecashasrequested

To prevent mishandling of the card/pin code/cash, the scholar and the family member accompanying will sign the scholarship payment ledger.

E-Scholarship payments ensure:

Eiciency Transparency Empowermentofthescholars

30

PEEF Master level scholarships are awarded to pursue Master degree from the Partner universities/

degree awarding institutions.

Eligibility Criteria:i. Students having Punjab domicile. ii. Must have secured at least 60% marks or minimum CGPA 2.5 in BA/B.Sc./B.COM/BBA/BCS/BS (Hons.) etc.

examinations held in 2014 (annual) in Punjab. Studentswhohavealreadypassed/possessedMA/MSc./MS/M.PHILetc.degreearenoteligiblefor PEEF Master Level Scholarship Marksimproversorstudentswhohavepassedexaminationinsupplementarysessionarenoteligible Studentswhohavepassedtheaforementionedexaminationwithgracemarks(*)arealsonoteligible for PEEF scholarshipsiii. Passed the aforementioned examination from: GovernmentInstitution,(OR) PrivateAiliatedInstitution,(OR) AsPrivateCandidateiv. Secured admission as a full time student in the current academic / Degree year (2014-15) in one of the partner

universities. Studentsenrolledinspring/fallsession(whereapplicable)andmorning/afternoon/eveningsessions are also eligible to apply for PEEF scholarships v. Declared monthly income of parents from all sources is equal to or less than Rs. 30,000/- ChildrenofGovt.employeesofGrade1-4areexemptedfromconditionofincomeifsalaryisonly source of incomevi. Not receiving any other scholarship for Masters Level studies.

Basis for scholarship allocation: Scholarship quota is allocated on the basis of enrollment data provided by the Partner Universities.

Scholarship stipend:Following cost and stipends are paid to the selected scholars:

a. Total tuition fee b. PEEF also pays scholarship stipend to the selected scholars at the following rates: i. Day Scholar Rs. 3,000/- per month ii. Boarder Rs. 5,000/- per month

Scholarship allocation: Scholarships allocation in the Partner Universities of the Punjab is as follows:

70%ofthescholarshipsareallocatedforsciencesubjects. 30%ofthescholarshipsareallocatedforartssubjects.

Master L

evel Scholarships

31

Sr. No. Name of University Scholarship Awarded

(Year 2013)

1. THE ISLAMIA UNIVERSITY, BAHAWALPUR 90

2. UNIVERSITY OF AGRICULTURE, FAISALABAD 81

3. PUNJAB UNIVERSITY, LAHORE 284

4. GOVERNMENT COLLEGE UNIVERSITY, FAISALABAD 119

5. BAHA UD DIN ZIKRYA UNIVERSITY, MULTAN 109

6. UNIVERSITY OF EDUCATION, LAHORE 116

7. PIR MEHR ALI SHAH ARID AGRICULTURE UNIVERSITY, RAWALPINDI 168

8. UNIVERSITY OF SARGODHA 134

9. UNIVERSITY OF ENGINEERING AND TECHNOLOGY, LAHORE 36

10. UNIVERSITY OF GUJRAT 66

11. FATIMA JINNAH WOMEN UNIVERSITY, RAWALPINDI 18

12. GOVERNMENT COLLEGE UNIVERSITY, LAHORE 27

13. UNIVERSITY OF VETERINARY AND ANIMAL SCIENCES, LAHORE 27

14. LAHORE COLLEGE FOR WOMEN UNIVERSITY, LAHORE 13

15. COMSATS UNIVERSITY, ISLAMABAD 21

16. UNIVERSITY OF ENGINEERING AND TECHNOLOGY, TAXILA 6

17. KINNAIRD COLLEGE FOR WOMEN UNIVERSITY, LAHORE 5

18. NATIONAL TEXTILE UNIVERSITY, FAISALABAD 2

19. UNIVERSITY OF HEALTH SCIENCES, LAHORE 4

20. THE WOMEN UNIVERSITY OF MULTAN 1

Total 1327

University Wise Scholarship Aw

arded

32

Year No. of Active Scholarship Educational Level

Scholarships Scholarships Disbursements

Awarded (Rs. in million) 2008 09 5,326 - 22 Intermediate & Graduation2009 10 5,484 85 250 Secondary, Intermediate & Graduation2010 11 6,982 994 362 Secondary, Intermediate, Graduation & Master2011 12 13,345 2,159 707 Secondary, Intermediate, Graduation & Master2012 13 9,952 9,952 750 Secondary, Intermediate, Graduation & Master

2013-14 PEEF 9,468 9,468 775 Secondary, Intermediate, Graduation & Master DFID 9,153 9,153 187 Intermediate & Graduation

2014-15 PEEF 10,077 10,077 845* Secondary,Intermediate,Graduation&Master(In process) DFID 8,650 8,650 355* Intermediate&GraduationTotal 78,437 50,538 4,253

* Estimated amount

Annual Scholarship Disbursement (Rs. in million)

Scho

larship Up

date

33

Chamalang Beneciaries

Education Program (CBEP)

The Honorable Chief Minister, Punjab while approving the request of Chamalang Beneciaries Education Program (CBEP) to accommodate their students in the Divisional Public Schools (DPS)/Boarding Schools of Punjab, has desired that PEEF may administer/coordinate with Education

Department, Govt. of Baluchistan, CBEP, School Education Department and Finance Department, Govt. of Punjab and nalize all modalities regarding admissions of students of CBEP in the Divisional Public Schools (DPS)/Boarding Schools of Punjab and disbursement of scholarships to their respective school.

Currently 276 students of CBEP have been enrolled in the following ve (5) Punjab Based Divisional Public Schools (DPS)/ Boarding Schools:

Sr. No Name of DPS Enrollment Total Disbursement (Rs.)

1 DPS & College, Sargodha 100 30,371,2962 DPS & College, Faisalabad 24 8,992,5483 Chenab College, Jhang 20 10,670,0004 DPS & Inter College, Lahore 20 7,042,0205 Multan Public School & College 112 42,899,552

TOTAL: 276 99,975,416

34

Youth De

velopm

ent C

entre

(YDC

), Pu

njab

Hou

se, M

urree The Honorable Chief Minister, Punjab/Chairman-PEEF has allocated the newly built S-Block, Punjab House, Murree, to PEEF to be used as residential training facility for brilliant students.

The premises is being used for the training of the brilliant students through the following training programs:

i. High Achievers Development Program (HADP)ii. Orientation and personality development program for students selected for PEEF Foreign Scholarships Programiii. Provincial Youth Council (PYC) Development Programiv. Training of Trainers (TOT) of selected teachers to facilitate District wise training of PEEF scholarsv. CM Essay Finalist Trainingvi. CM Debate Finalist Trainingvii. Capacity Building workshops for PEEF scholarsviii. Inter Provincial Exchange Programix. Entrepreneurial Skills Development workshopsx. Capacity building programs for Special Children

Since its establishment in Oct. 2010, 153 training cohorts have been held in YDC for 3,688 high achievers, including students from other provinces.

35

Training Programs Participants No. of Training

Male Female Total Batches Duration

1. Entrepreneurial Skills Development 155 107 262 9 3 Days2. Inter Provincial Board Toppers 76 65 141 3 4 Days3. High Achievers Development Program 107 86 193 9 3 Days4. IBA (STHP and NTHP) 20 5 25 1 4 Days5. Special Capacity Building Program for Physically Challenged Children 64 39 103 4 2 Days6. PEEF Scholarship Training Program 140 56 196 8 3 Days7. PEEF Scholars Baluchistan 2014 18 16 34 1 4 Days8. Centre of Excellence 36 8 44 2 3 Days9. Training of Trainers(TOT) 30 15 45 2 4 Days10. Knowledge Literacy & Skill Development YDC PEEF Introduction. 17 17 1 1 Day11. Punjab Board of Technical Education(PBTE) 63 2 65 3 3 Days12. Strategic Planning workshop for PEEF 2014-2015 18 5 23 1 2 Days

TOTAL 744 404 1248 44

Detail of training sessions conducted July 2013 to June 2014

Sessions conducted July 2013 to June 2014

Scholarship Program in Collaboration with DFID-UK Aid

Punjab Educational Endowment Fund (PEEF) and Department for International Development (DFID) UK Aid have signed Memorandum of Understanding (MOU) to provide 28,000 scholarships to meritorious and needy students for Intermediate and Graduation Level Education.

Under the proposed 5-year scholarship program; PEEF will provide 28,000 scholarships worth Rs. 1.625 billion. Out of the total allocated scholarships, 27,500 will be awarded to girls students of eleven (11) less developed districts of Punjab to continue Intermediate level education while 500 scholarships will be awarded to meritorious students to peruse Graduation Level education through partner Centre of Excellences (COEs).

The target districts for intermediate Level Scholarships for girls students under the PEEF DFID Scholarship Program are:

Chiniot Layyah Muzafar Garh Lodhran Bahawalnagar Rahim Yar Khan

Bhakar Vehari Dera Ghazi Khan Rajanpur Bahawalpur _______

The partner COEs to provide Graduation Level Scholarships are:

LUMS COMSATS Lahore FAST Lahore Namal Mianwali

Giki Swabi COMSATS Islamabad NUST Islamabad ______

Progress 2013-14:

During the FY 2013-14 9153 Scholarships were awarded which include 8,903 for female students for completion of their intermediate level education in 11 less developed districts of Punjab. 250 scholarships were awarded to the meritorious students of centre of excellence (COEs) for graduation level education.

Way Forward:

During the current year (2014-15) PEEF will award 8650 additional scholarships 8500 for intermediate Level Education and 150 for Graduation Level Education. The process of short listing the students has already started and PEEF will complete the process of awarding 8650 additional scholarships by Jan. 2015. The total amount of the additional scholarships is estimated at Rs.355 million.

PEEF-DFID Scho

larships

36

Financials

i). Investment of Endowment Fund The Government of Punjab has provided Rs.9.00 billion for the Endowment Fund of PEEF, which have been

invested in Term Deposit Receipts (TDRs) with The Bank of Punjab (BoP).For the FY 2010-11, the Govt. of Punjab allocated Rs. 1.94 billion which is parked with the Punjab Cooperatives

Board for Liquidation (PCBL) and only the prots of this amount are forwarded to PEEF. So far, Rs. 590.014 million has been received from PCBL, being the investment proceeds from August, 2010 to June, 2014.

The detail of investment of Endowment Fund is given below:

Sr. No. Period of TDRs Date of Maturity Rate of Interest TDR Amount

p.a. (Rs. In Billion)

1 1 Year December 29, 2014 10.20% 2.00

2 1 Year March 31, 2015 9.83% 2.50

3 1 Year May 27, 2015 9.70% 1.00

4 1 Year June 25, 2015 10.10% 3.50

5 Rs. 1.94 billion for the FY 2010-11 is parked with the Punjab 1.94 Cooperatives Board of Liquidation (PCBL)

TOTAL (A) 10.94

ii) Reinvestment of 10% of the investment proceedsTo oset the impact of ination on the Endowment Fund, Executive Committee in its 4th meeting held on

August19, 2009, approved the allocation of 10% of investment proceeds to the Endowment Fund. Thereafter, Rs. 330 million has so far been re-invested to the Endowment Fund being the 10% of the investment proceeds earned by the Company till Dec. 29, 2013.

Detail of re-investment is as follows:

Sr. No. Period of TDRs Date of Maturity Rate of Interest p.a. TDR Amount (Rs.)

1 1 Year December 29, 2014 10.20% 330.00 Million

TOTAL (B) 330.00 Million

TOTAL AMOUNT OF ENDOWMENT FUND (A+B) 11.27 Billion

iii). Summary of Financial Performance during the year 2013-14:

Description Amount (Rs. In Millions)

Program Cost 801,146Operational Expenditures 49,231Total 850,377Operational Costs to Total cost Ratio 5.79%

Fina

nce

38

39

iv).Internal Audit100% internal audit is carried out by the Internal Audit Section to monitor the aairs of all sections of PEEF.

Internal Audit Reports are reviewed by the Audit Committee and Executive Committee and are then forwarded to the Board of Directors.

v). Scholarship Batch Audita) For the year 2009-10:

The Executive Committee in its 12th meeting held on 23rd February, 2011, approve the proposal to carry out batch Audit and Policy and process review exercise of PEEF for the Year 2009-10 by M/s. A.F. Ferguson & CO, Chartered Accountants.

b) For the Year 2010-11:

The Chairman PEEF / Chief Minister Punjab, Mr. Muhammad Shahbaz Shareef desired in the 7th meeting of the Board of Directors, held on 12TH November, 2011, that PEEF may acquire the services of Ernst & Young Ford Rhodes Sidat Hyder, Chartered Accountants for another batch audit of its policy and process. The batch audit for the mentioned period has been carried out by Ernst & Young Ford Rhodes Sidat Hyder, Chartered Accountant.

vi). ISO 9001:2008 Certication 1st Surveillance Audit for ISO-9001:2008 Quality Management System for the year 2013-14 was conducted by

M/s. TUV Austria and considering satisfactory performance of PEEF, they have extended the Continuation of Certication for ISO 9001:2008.

vii). Annual Audit 2013-2014

For the Year Ended June 30, 2014

During of Audit One year (1st July, 2013-30th June, 2014)

External Auditors Ernst & Young Ford Rhodes Sidat Hyder, Chartered Accountants

External Auditors Ranking i. One of the leading rms of Pakistan. ii. Category A rm as per list issued by the State Bank of Pakistan. iii. Approved audit rm of FBR and SECP. Satisfactory quality control review rating being issued by the institute of Chartered Accountant of Pakistan (ICAP).

Auditors Report Unqualied (clean report)

FinancialStatementsincludingbalancesheet,incomeandexpenditurestatementandnotestotheinancialstatements are prepared on monthly bases and in accordance with the requirement of the international nancial reporting standards.

Quarterlyaccountsarepresentedtotheauditcommittee. Allbankaccountsarereconciledonregularbasis. Regularphysicallyveriicationsofixedassetsarecarriedout.Allixassetsareproperlycoded.Fixasset

register is maintained and is regularly reconcile with the general ledgers in physically assets. Financebooksofaccounts/records/vouchers/documentationshavebeenmaintainedinaccordancewiththe

bet parties. MonthlytaxstatementshavebeenproperlyilledincompliancewiththerequirementsofIncomeTaxorSell

Tax Laws. No pending tax liabilities.

Audited accounts along with auditors Report thereon for the year ended June 30th, 2014 is as follows:

Finance

Documents

Annual Report14