OUTREACH | SUSTAINABILITY | IMPACT | TRANSPARENCY Report-201… · working practice, innovative ideas and the of enterprise. 3. INTEGRITY ... First Family App nominated in EFMA Awards

OUTREACH | SUSTAINABILITY | IMPACT | TRANSPARENCY

A N N U A L R E P O R T

FMFB Annual Repor t 2019

CONTENTS

COMPLIANCE REVIEW 70Compliance Risk ManagementRisk Management Framework

OperationsDevelopmentGovernance/Security

INTERNAL CONTROLENVIRONMENT

74Statement on Internal ControlRecord ManagementBusiness Continuity and Disaster RecoverySocial and Environmental Responsibility Policy

FMFB PRODUCTSAND SERVICES

78Liability ProductsAsset ProductsMicro InsuranceDigital Access Channels

Financial Performance Trend Analysis Financial Results 2012 - 2019Financial Summary and Ratios 2012 - 2019Vertical Analysis 2012 - 2019Horizontal Analysis 2012 - 2019Income Summary 2012 - 2019Commentary on FinancialsMajor Capital ExpenditureCash Flow Statement - Direct Method

DIRECTORS' REPORT TOTHE SHAREHOLDERS

86

FINANCIAL ANALYSIS

Stakeholders’ EngagementStatement of Value Added

STAKEHOLDERS RELATIONSHIPAND ENGAGEMENT

92

106

AUDITOR'S REPORT TO THE MEMBERS 110

FINANCIAL STATEMENTS 116

FMFB PRESENCE 180INFORMATION TECHNOLOGYAND GOVERNANCE 66Information Technology (Initiatives & Innovations) – 2019 67

CORPORATE VALUE STATEMENTS 02Vision & MissionCore ValuesOur CommitmentOur Brief HistoryOur Ownership Structure

34556

676868

75757676

79808182

9395969899

100101103104

7172

CODE OF ETHICS ANDBUSINESS CONDUCT 56

60HUMAN RESOURCES

Code of Ethics and Business ConductCode of EthicsWhistle Blowing Procedure

Human Capital Developments in Year 2019Talent Development and Employer BrandRight Organizational DesignCulture and Employee EngagementCapability ManagementCompensation and Bene�ts AlignmentDiversity and Inclusion

575758

GOVERNANCE ANDMANAGEMENT 22Corporate InformationChairperson's MessagePresident/Chief Executive Of�cer MessageBoard of DirectorsManagementOverview of the BoardRelated PartiesSalient Features of TORs of the Board Committees

2324263337414142

61616162636364

SOCIAL IMPACT 48FMFB's 9 Social GoalsFinancial Consumer Protection JourneyFinancial LiteracyService Quality

505153

STRATEGY AND RESOURCE ALLOCATION 07Strategic Objectives and Resource Allocation 9

17 YEARS AT A GLANCE 12

2019: THE YEAR IN FOCUS 18

107108

Expand outreach in a sustainable and responsible manner by creating �nancial solutions for our customers

OUR VISION

OUR MISSION

Enable people to improve their quality of life with inclusive and innovative �nancial solutions

CORE VALUES

1. EXCELLENCEAt the core of everything the bank does, excellence is the one value

that shines through everything. FMFB needs to be the best in everything we do in a highly competitive market.

2. PROGRESSIVENESS We believe in improving society through enlightening

working practice, innovative ideas and the of enterprise.

3. INTEGRITY The success of our business depends on trust. Our customers and the nation as a whole expect us to maintain high levels

of professional standards and moral principles.

5. MERITOCRACY We believe in giving opportunities and advantages to our employees

on the basisof their ability andachievement alone.

4. CUSTOMER FOCUSWe constantly listen to our customers. It helps us fully understand

their needs and enables us to offer products and services that are right for them.

04


05


This commitment uni�es our priority towards, both, our internal as well as external stakeholders and assists in nurturing and sustaining a culture of responsible and socially conscious business practices. All our �nancial services are structured to the varying needs of our ever evolving target market, which is segmented into various categories including industry, gender, income and region. Our commitment comes with an obligation to be an

institution that drives its sustainability solely from its client centricity service structure; this alone sets us apart from our competition and gives us the competitive edge required to become a leading �nancial services provider within the industry. We are committed in achieving our customers’ success through best services, best products and best practices.

At The First MicroFinanceBank Ltd, we stand committed to our strategic objective of providing �nancial services seamlessly and transparently, to the underprivileged and �nancially excluded; with an aim to constructively impact the socio economic well-being and bringing about a meaningful change in the community at large.

The First MicroFinanceBank Ltd (FMFB) was licensed in 2002 by the State Bank of Pakistan (SBP), for operating as a nation-wide micro�nance bank.

FMFB’s history dates back to 1982 when the Aga Khan Rural Support Programme (AKRSP) pioneered a microlending initiative in the Gilgit-Baltistan and Chitral (GBC) regions. After

OUR COMMITMENT

having successfully operated as an integrated development programme for over 20 years, the credit and savings component of AKRSP was structurally transformed into a stand-alone micro�nance bank, under the then newly issued Micro�nance Banking Companies Ordinance of the Government of Pakistan to promote and regulate a credible micro�nance business segment within the �nancial sector of the country.

FMFB was established with the mission of supporting �nancial inclusion of millions of under-privileged and �nancially excluded households, thereby enabling broader poverty reduction and impacting the social and economic well-being of the society in Pakistan. Since inception, FMFB has enabled its countless clients in building their �nancial, physical and human capital besides strengthening their entrepreneurial base. FMFB is proud to have secured the future of many of its clients through targeted �nancial and multi-sectoral products and services structured according

to the evolving needs of its target market.

Over the years, FMFB has established itself as one of the strongest and most pro�table micro�nance banks in Pakistan. FMFB has also continued to witness a strong growth and expansion in its outreach and has played a pivotal role in furthering �nancial inclusion in the country. In its last credit rating review by JCR VIS, FMFB has been bestowed with “A+/A-1” (Single A Plus/A-One) rating with a “Stable” outlook. Amongst many other awards and accolades to its credit, FMFB is proud to have been recognized by Internal Rating Agencies for its transparency and client centricity. Additionally, FMFB’s efforts to support entrepreneurial capacity building were recognized, by Citi Foundation and Pakistan Poverty Alleviation Fund under their Citi Microentrepreneurship Awards, via its clients who have consistently been presented national & regional awards for outstanding microentrepreneurship year after year.

OUR BRIEF HISTORY

06


OUR OWNERSHIP STRUCTURE

Habib Bank Limited

Aga Khan Agency for Micro�nance

Aga Khan Rural Support Program

Japan International Cooperation Agency

Others

Pakistan

Switzerland

Pakistan

Japan

Pakistan

137,931,035

81,150,030

30,000,000

24,000,000

50

273,081,115

1,379,310,350

811,500,300

300,000,000

240,000,000

500

2,730,811,150

No. Share Amountof SharesNationalityShareholder's Name

09


FMFB will continue to ensure the mission of enabling individuals while generating employment opportunities in poor and vulnerable households. FMFB’s strategic objective not only covers business expansion and growth but also it emphasizes on building a corporate culture of excellence, professionalism, integrity, customer focus, meritocracy and by encouraging

teamwork among the FMFB family In order to attain synergy. FMFB intensely focuses on being a socially responsible organization.

FMFB’s Strategy in long term is delivering remarkable returns to the stake holders by achieving sustainable performance by ensuring operational ef�ciency; enhance delivering capability and high service standard, by developing strong compliance culture with robust risk management framework, and by creating a corporate culture of equality, trust and team spirit.

FMFB is transforming its conventional micro�nance operations with enhancement in controls, ef�ciency and productivity by digitizing and exploring new horizons to ensure �nancial inclusion through digital �nancial services. It will continue to service small farmers in agriculture and livestock, education, housing and small enterprises.

FMFB will continue its efforts to penetrate in un-banked/ underserved and rural areas along with its penetration to the peri-urban locations, while expanding its outreach in various geographies/ territories/ provinces based on overall potential and FMFB's affordability from time to time.

CPEC routes will be covered for expanding footprint where there is potential for maximum economic activity FMFB will continue its focus on far �ung and hard areas of Gilgit-Baltistan-Chitral (GBC) from both digital and micro�nance perspective by tailoring products and services to capture new markets; to show FMFB’s commitment towards GBC, the bank is constructing its regional of�ce in Gilgit.

FMFB will be enhancing and improving its focus of risk management, compliance and internal audit. FMFB will continue to ensure zero tolerance against fraud & forgery and malpractices within all operating activities and business. FMFB is determined to inculcate and enrich a compliance culture at all levels while assuring compliance to regulatory regimes and internal policies.

FMFB will continue its effort on becoming employer of choice. Given the overall growth strategy of FMFB, Human

STRATEGIC OBJECTIVES ANDRESOURCE ALLOCATION

10


Resource Management will be a focus area in terms of hiring quality resource and enhancing skill sets of existing resource through continuous training and development.

FMFB is working on enhancing its product suite through implementation of digital �nancial services with a focus on client centricity and �nancial inclusion. The bank is also focusing on leveraging technology to digitalize work processes and improve ef�ciencies.

FMFB aims to become an organization focusing on social goals along with �nancial sustainability goals. The Bank has identi�ed a speci�c set of social goals along with target indicators, which the Bank intends to achieve while balancing its �nancial goals during the next �ve years. With the changing environment, the bank continues to review the social goals to adjust and update these as per the requirements of varying times.

13


2019

2018

2017

2016

FMFB staff contribution in National Financial Literacy Program recognized by SBPIn Digi-Awards Insta 48 won as Best Banking Tech & First Awaaz as Best Online Streaming ServiceFirst Family App nominated in EFMA Awards under the workforce experience category 2018 Annual Report won 2nd Position under the category of Best Corporate and Sustainability Reporting – silver award, recognized by ICMAP & ICAPAwarded Five Regional Awards at the 13th Citi PPAF Awards

Insta 48 Launched

No of BorrowersGross Loans (MM) No of DepositorsDeposited Amount (MM)

485,50531,066

1,221,70138,404

Certi�cations/Awards

Milestones

Loan ProductsNilDeposit ProductsNil

Branches 163SOs 0736PBs

FOOT PRINT 206



423,58923,404

986,81431,129

Won Smart Certi�cation Award for Client Protection Won Gold Price Disclosure Award by MicroFinanza Rating Awarded Five National/Regional Awards at 12th Citi PPAF Awards

First ATM LaunchedMilestones

Loan ProductsRoshanZar Plus

Deposit ProductsFirst Premium Saving Account

First Current Plus AccountBranches 155

SOs 1929PBs

FOOT PRINT 203

Awarded Best Partner Institute for NFL Program by SBP Awarded Three Regional awards at 11th Citi PPAF Awards


304,56314,308

718,10720,887

Loan Products


MilestonesLaunched Social Media Channels Joined hands with LFD for Enhancing Financial Inclusion Signed agreement with TPS Pakistan to enable Digital Payment Platforms Launched FMFB VANBank

First Home LoanStudent Finance

Deposit ProductsUmeed Bunyadi Bachat AccountDiamond TDR Product


FOOT PRINT 186



220,4938,203

458,21012,237 Five National/Regional Awards at

10th Citi PPAF Awards

HBL acquired 50.5% sharesMilestones

Loan ProductsNil

Deposit Products

NilBranches 100

SOs 3920PBs

FOOT PRINT 159

14


2014

2013

2011

2015

2012

Four National/Regional Awards at the Citi PPAF Awards

Approved Employer accredition by ACCA


176,7385,588

296,2489,661


Milestones

Loan ProductsBEIP Product

Deposit ProductsNil


FOOT PRINT 151


270,787


148,3254,430

8,750

Awarded Seal of Pricing Transparency by MF Transparency

Milestones

Loan ProductsRoshanZar

Renewable Energy Finance

Deposit ProductsBranches 84

SOs 3616PBs

FOOT PRINT 136

Deposited Amount (MM) 7,815


No of BorrowersGross Loans (MM) No of Depositors

129,9873,466

263,437

National Award at 7th Citi PPAF Awards

NilMilestones Loan Products

First Karobar SarmayaFirst Kissan SarmayaFirst Maveshi SarmayaFirst Roshan Mustaqbil SarmayaMulti Input Resettlement ProductSocial Loan Product

Deposit Products

NilBranches 79SOs 5008PBs

FOOT PRINT 137


250,212


122,8563,027

6,571

National/Regional Awards at 6th Citi PPAF Awards

NilMilestones

Loan ProductsIndividual Finance Against Gold

First Sawari SarmayaGeneral Purpose Loan

Asaan AccountvDeposit Products

Nil


FOOT PRINT 132



118,7062,377

240,3945,920

Nil

Nil

Milestones Loan Products

Deposit Products

Nil

Individual Finance (Against Cash Near Cash) BACIP Product


FOOT PRINT 130

15


2010

2008

2007

2009

Certi�cate of Recognition in Silver Category by Micro�nance Informa-tion ExchangeNational Award at 5th Citi PPAF Awards

Nil


151,5322,353

227,0395,344

Certi�cations/AwardsMilestones

Loan ProductsNil

Deposit ProductsNil


FOOT PRINT 147



199,4582,751

189,8785,219

Social Rating carried out by M’Cril Collaboration with Harvard University for social performance research

Milestones

Loan ProductsStart Up Finance

Deposit ProductsNil

Nil


FOOT PRINT 156

Certi�caitons/Awards


167,9152,082

144,8983,305

NilMilestones

Loan ProductsLivestock Finance

Deposit Products

Nil

Ranked 7th amongst the top 100 MFIs of the world in 2008 MIX Global 100 Composite Rankings


FOOT PRINT 157


80,107


101,1931199

2,036

Ranked 14th amongst the top 100 MFIs of the world in 2007 MIX Global 100 Composite RankingsLaunched the �rst branchless banking unique partnership with the Pakistan Post for increasing outreach in remote areas

NilMilestones

Loan ProductsNil

Deposit ProductsFirst Bachat Tanzeem Branches 76

SOs Nil04PBsFOOT PRINT 80

16


2005

2004

2002

2006

2003



52,135668

39,154925

NilMilestones

Loan ProductsShubinakMicro Enterprise Finance

Deposit ProductsNil

Awarded the top “Financial Financial Transparency Award 2006” by CGAP

Branches 21SOs Nil15(8)PBs

FOOT PRINT 44

First MFP in Pakistan to become a member of the global Micro�nance Network


16,855355

27,932651

NilCerti�cations/AwardsMilestones

Loan ProductsNISA

MDPL

Deposit ProductsNil

Branches 15SOs Nil03(9)PBs

FOOT PRINT 27


No of BorrowersDisbursed Amount (MM) No of DepositorsDeposited Amount (MM)

9,543212

18,589469

Awarded ‘5-Diamond’ Status for high level disclo-sure on the Micro�nance Information Exchange

Milestones

Loan ProductsMicro Pensioner Loan

Low Salary Employees LoanWomen Entrepreneurship Loan

Deposit ProductsNil

Nil

Branches 21SOs Nil(02)POL

FOOT PRINT 23



3,55866

10,151392

Nil

Nil

MilestonesLoan ProductsVillage Group Finance SchemeUrban Group Finance SchemeHousing Imrovement LoanIndividual Loan

Deposit ProductsNil


FOOT PRINT 20


2,773


71318

64

Inaugurated by His Highness the Aga Khan & President of Pakistan

Nil

Milestones

Loan ProductsUrban Group LoanVillage Group LoanBusiness GroupBusiness Committee

Deposit ProductsTerm Deposit AccountCurrent AccountSaving Account Micro Cash Maximizer


FOOT PRINT 08

49%

CASA RATIO

ACTIVEBORROWERS

485,505

DEPOSITORS

NEWACCOUNTS

253,605

3.5%

1,221,701

PORTFOLIOQUALITY - NPL%

DEPOSITBASE '000

38,403,643

GROSS LOANPORTFOLIO '000

31,066,130

33%

NEWBORROWERS

217,637

NETWORKLOCATIONS

206

WOMENRATIOBORROWERS BASE

PRE-TAXPROFIT - PKR '000

701,161

RATIO OF RURALBORROWERS

67%

19


173,929

ATMs

76

3,296

DIGI AWARDS

Given by Pakistan Digital Awards on Best Banking Tech of the Year (Insta - 48) andBest Online Streaming (FIRST Awaaz)

DIGITALDISBURSEMENTS -INSTA48

17,951

NFLPRECOGNITION

Given by SBP on best partner institute on National Financial Literacy Program

BEST CORPORATE& SUSTAINABILITY REPORT AWARD

Given by ICAP (The Institute of Chartered Accounts of Pakistan) and ICMAP (the Institute of Cost and Management Accountants of Pakistan), FMFB won 2nd position

The bank nominated for the EFMA awards 2019 with its Digital products Insta1, Insta 48, FIRST Awaaz web casting and FIRST Family Employee App under the categories of innovation, Phygital Distribution & Experience and Digital Marketing & Communication

EFMANOMINATION

GDIBAWARD WINNER

Given by Diversity Hub Pakistan on creating diversity and inclusive culture in the organization

Given by Citi Foundation and the Pakistan Poverty Alleviation Fund under the umbrella of 13th Citi Micro Entrepreneurship Awards, FMFB won 5 Awards (3 Regional winners and 2 Regional Runnersup)

CMAAWARDS

DEBITCARDS ISSUED

A+/A-1

CREDIT RATING

STAFF

20


CORPORATE INFORMATION

Rayomond KotwalAbrar Ahmed Mir

Jesse Culain FrippMaria Christine Largey

Masanari YanagiuchiMaya Inayat Ismail

Sobia ChughtaiZahir Riaz

Muhammad Amir Khan

ChairpersonDirectorDirectorIndependent Director DirectorDirector DirectorIndependent DirectorPresident & CEO

BOARD OF DIRECTORS

COMPANY SECRETARYYasir Masud

LEGAL ADVISORKhawaja & Kamal Attorneys at Law

AUDITORA.F. Ferguson & Co. Chartered Accountants A member �rm of the PwC

HEAD OFFICE & REGISTERED OFFICEThe First MicroFinanceBank Ltd. 16th & 17th Floors Habib Bank Tower Blue Area,

Islamabad Phone: (+92-51) 2824450

ENTITY RATINGSLong Term: A+ Short Term: A-1 By JCR-VIS

Maria Christine LargeySobia Chughtai

Maya Inayat IsmailMuhammad Siddique

ChairpersonMemberMemberSecretary

AUDIT COMMITTEE

Rayomond KotwalMaya Inayat Ismail

Zahir RaizWajid Ali


HUMAN RESOURCE COMMITTEE

Jesse Culain FrippSobia Chughtai

Abrar Ahmed MirZehra Khalikdina


RISK COMMITTEE

Abrar Ahmed Mir Jesse Culain Fripp

Maria Christine LargeySohail Malik


FINANCIAL INCLUSION AND IT COMMITTEE

BOARD COMMITTEES

23


24


FMFB’s borrowers are from the most vulnerable segments of the population – our mandate is to provide them with access to �nancial services so that they are able to improve their quality of lives. To this end, I am pleased to share that the Bank ful�lled its mandate of provid-ing banking services to the unbanked – a continuously growing customer base of over 1.4 million, is testament to this while maintaining its loan portfolio quality. FMFB’s performance during 2019 was delivered in the backdrop of a challenging external environment and the bank was able to navigate through these headwinds as a result of substan-tial investments made over the past couple of years in the risk framework and �nancial discipline. We are proud to report that by the end of 2019, FMFB had strengthened its market position to become the 2nd largest

THE CHAIRMAN MESSAGE

micro�nance bank in Pakistan. We disbursed PKR 31.6 billion in loans, once again the highest ever in our history, to more than 430,000 clients, growing the loan portfolio by 33% to PKR 31 billion; deposits increased by 23% to over PKR 38 billion. The strength and stability of our franchise was recognized by VIS who reaf�rmed our credit rating at A+/A-1, the highest possible in the micro�nance sector.

FMFB remains committed to accelerating its transformation to digitize all customer interactions. This will enable the Bank to ramp up �nancial inclusion while greatly expanding its outreach and revolutionize the customer on-boarding journey. In 2019, the Bank initiated the rollout of Insta48, a fully digital loan origination system that enables end-to-end disbursement within 48 hours. Internal digitalization initiatives serve to kick-start a digital journey and during the year, we launched the First Family App – an application that enables HR interactions via smartphones. This has received extremely positive feedback, internal as well as external. I am delighted to share with you that our digitization efforts have received external recognition with Insta48, being awarded at the Annual DigiAwards 2019 in the category of “Best Banking Tech” and the First Family App being nominated under the category of Workforce Experience in the annual EFMA - Accenture Customer Insight & Growth Banking Innovation Awards 2019. The �ght against �nancial crime continues to be of paramount importance to us. FMFB has made great strides in strengthening its Compliance Framework to ensure compliance with local regulations as well as global best practices.

During the unprecedented global COVID pandemic, we

have taken all possible measures to ensure uninterrupted provision of the complete range of banking services to our clients while adopting the best recommended personal protective practices for our staff, as well as for our custom-ers across the country – for FMFB, the safety and physical well-being of our staff and clients is of paramount impor-tance. A public awareness campaign has been launched on our all social media channels as well as on print media to encourage clients to use alternate digital delivery channels instead of visiting the branches. During these dif�cult times, FMFB stands �rm with its clients by continu-ing to take care of their business needs – and will support them through this cycle, including through relief measures in line with regulatory guidelines where necessary. With the onset of the pandemic and the ensuing lockdown, many daily wage earners were faced with starvation, FMFB, in collaboration with HBL and Jubilee Insurance, arranged to distribute food rations to families of daily wage earners across the country. Over 180,000 people have bene�ted from this program that reached people in remote areas of Gilgit-Baltistan and Chitral to the slums of Karachi.

The COVID-19 impact will be long lasting and, in many ways, has already changed the world forever, requiring new ways of interaction and working. This has provided further impetus for FMFB to fast-track its digital journey with the clear objective to operate effectively and safely. To meet this objective, FMFB will invest more in developing and acquir-ing state-of-the-art technology to improve the customer experience throughout their entire relationship while providing them seamless convenience at their �ngertips, reduced human interaction and faster turnaround time. We would not have become one of the leading micro�nance banks today without the unwavering support of our custom-

25


FMFB’s borrowers are from the most vulnerable segments of the population – our mandate is to provide them with access to �nancial services so that they are able to improve their quality of lives. To this end, I am pleased to share that the Bank ful�lled its mandate of provid-ing banking services to the unbanked – a continuously growing customer base of over 1.4 million, is testament to this while maintaining its loan portfolio quality. FMFB’s performance during 2019 was delivered in the backdrop of a challenging external environment and the bank was able to navigate through these headwinds as a result of substan-tial investments made over the past couple of years in the risk framework and �nancial discipline. We are proud to report that by the end of 2019, FMFB had strengthened its market position to become the 2nd largest

EARNINGS PER SHARE (AFTER TAX)

1.95 9.2%

73.3% 25.5%

RETURNON EQUITY

COST TOINCOME RATIO

ASSETGROWTH

ers and we thank them for their loyalty and trust. Our greatest strength shall always be our human resource, the FMFB Family. They have been at the forefront of facing the challenging market conditions, while ensuring that FMFB continues to serve its customers through superior products and services. The Board expresses its gratitude for their perseverance, commitment to the mission of the Bank, and for positioning FMFB for a brighter and more prosper-ous future. The Board remains resolute to its vision of human capital development and capacity building for better service delivery at all levels. The values of equality and equity, respect for customers and employees and zero tolerance for non-compliance are core components as we drive towards our goal of attaining market leadership in the sector.

In the end, I would like to express my profound gratitude for the regulators SBP and SECP for their guidance and contin-uous support to the overall banking industry during a critical time for the national economy on the whole and for the banking sector in particular. The Board and I remain committed to ensure that FMFB continues to play a leading role in �nancial inclusion in Pakistan.

Mr. Rayomond Kotwal

26


THE PRESIDENT AND CEO’s MESSAGE FMFB today is a stronger, more innovative and resilient bank all set to attain what few have achieved in the market.

During the course of the last couple of years, the key focus of the FMFB Management has been �ve priority areas, achieve sustainable growth by focusing on core competencies, embrace digital as the way forward, ensure excellent governance and the highest ethical standards, improve the quality of life of clients and, lastly, strengthen the bank’s resilience to external shocks. These form the main pillars of FMFBs long term sustainability and enabled the Bank to grow exponentially as well as responsibly. Micro�nance in Pakistan is going through a major evolutionary leap, with key partner institutes eyeing digital �nancial solutions to expand their outreach, is clear indication that in the near future we would witness �nancial services that are cost ef�cient, business models that are robust and outreach that extends to the customer’s doorstep. While there were clear links between the sector’s slowdown and the country’s overall macroeconomic conditions, as one of the top micro�nance banks in the market, we at FMFB realize our responsibilities towards poverty alleviation and the impact of our �nancial interventions on the lives of millions of underprivileged and �nancially excluded individuals. While these temporary market conditions are corrections, administered by the policy makers to ensure sustainable long term economic recovery, they provide an excellent opportunity for introspection for resilience to upheavals. During the year, we reaped what we have sown in the past, improvements in governance frameworks, stress testing of our risk thresholds and �nancial remodeling of the core bottom line enabled the bank to continue its growth strategy. During the year, we extended micro loans to 217,637 new customers and were able to close the year with the gross loan portfolio of Pkr 31.6 Billion, a growth of 32.5% over 2018.

The Bank’s deposit book grew by 23.4% and was Pkr 38.4 Billion on December 31st, 2019. The CASA ratio in the overall deposits witnessed an impressive growth of 49.2% and stood at 48.7% of the overall deposits. This was possible via a strategic shift in the deposit acquisition strategy, one where the reliance on long term �xed institutional deposits was replaced by transactional banking accounts. We would continue with this strategic shift in the long term via digital innovations structured to support growth in low cost mobile wallets for small depositors as well as current accounts for small businesses

that require tailored cash management solutions for their everyday business needs. Our strategy for expanding our outreach has started to yield results. At one end we continue to increase our brick and mortar footprint, while on the other, we strengthened our digital channel uptake. In 2019, we expanded our branch network by 3 branches, 1 PB. We also converted 5 PBs to full service branches and11 SO were upgraded to the status of fully licensed locations. While we continue to push for greater uptake of our digital channels, we believe it to be highly essential to leverage the client connectivity achieved through a physical footprint.

In 2019, we witnessed our digital interventions yield results beyond our expectations. We became the micro�nance sector’s largest PayPak Debit Card issuer and at the close of the year our debit card transactions volume was an approximate Pkr 6.9 billion. Our Mobile Applications, First Touch Banking, achieved 2,839 activations and hosted a transaction volume of Pkr 1.1 Billion. But for us the biggest winner remained the First Awaaz Streaming service, our primary tool for greater �nancial literacy and recognized in Digi Awards 2019 as the “Best Online Streaming Service”.Over the years, FMFB has established its reputation as an innovator, having founded its roots in the credit and savings program of AKRSP, the bank has been the birthplace of major �nancial interventions that are being adopted by partnering institutions in the sector today. Structured

27


During the course of the last couple of years, the key focus of the FMFB Management has been �ve priority areas, achieve sustainable growth by focusing on core competencies, embrace digital as the way forward, ensure excellent governance and the highest ethical standards, improve the quality of life of clients and, lastly, strengthen the bank’s resilience to external shocks. These form the main pillars of FMFBs long term sustainability and enabled the Bank to grow exponentially as well as responsibly. Micro�nance in Pakistan is going through a major evolutionary leap, with key partner institutes eyeing digital �nancial solutions to expand their outreach, is clear indication that in the near future we would witness �nancial services that are cost ef�cient, business models that are robust and outreach that extends to the customer’s doorstep. While there were clear links between the sector’s slowdown and the country’s

CUMULATIVE VALUEOF LOANS DISBURSED

3,101,013

125.756 IN BILLION 48.018 IN BILLION

CUMULATIVE VALUE OF LOANS DISBURSED TO

AGRI/LIVESTOCK FARMERS

CUMULATIVE VALUE OF LOANS DISBURSED TO MICRO ENTERPRISES

CUMULATIVE VALUEOF LOANS DISBURSED

TO FEMALES

1,318,762

909,196

38.789 IN BILLION 34.308 IN BILLION

1,014,094

around the varying needs of the targeted clientele, these innovations have not only led to notable improvements in the quality of life of individuals but have also impacted communities that bene�t from increased employment opportunities arising from small businesses. These individuals through access to formal �nance have become role models for generations to come and their innovations and entrepreneurial abilities have received recognition by forums such as the Citi Foundation’s Citi Entrepreneurship Award. In 2019, 5 of FMFB’s clients emanating from remote localities of Gilgit, Baltistan and Balochistan received recognition for their valued impact. Our strategy to develop and strengthen the Compliance and Governance structure of the Bank started to payback its dividends in 2019. To ensure that the Bank complies to local as well as internal standards, adequate investments were made not just in systems or policy but more so in developing a culture where each individual in the Bank understands his / her obligations and implications towards non-compliance. In order to ensure that our digital future remains secure, for us and for our customers, the Bank rede�ned its risk management approach and acquired capacities at all levels of the value chain to ensure that its bulwarks to cyber-attacks are world class. We are proud of our history and heritage, as in them lies the direction which we are bound to follow in the future. We shall continue to be a bank where the customer is at the heart of all innovations. While we continue to steer forward towards a digital future, we ensure that our service delivery complies with the highest quality standards, as in this lies the secret to our sustainable growth, market positioning and most of all our identity.

With a target to achieve a customer base of 12 Million by

2024, we have all the components in our DNA to attain exponential growth as a market leader in the sector and of all the components we have nurtured, our employees remain the most potent catalyst behind FMFB’s growth trajectory. We have a unique workforce that fuels our future aspirations. Through the principles of diversity, equality, career progression and accountability, we have ensured a continuity that complements our progression and stride forward. The Board and I, express our deepest gratitude to our employees.

FMFB continues to work with the regulator to foster and develop pioneering interventions in the micro�nance industry. FMFB has developed various innovative programs in the �eld of Value Chain Financing and Renewable Energy Financing. The bank is also working in close coordination with the regulator in order to improve �nancial inclusion through digital channels. We are proud of the trust placed by the regulator in FMFB and intend to continue working with the regulator for the betterment of the micro�nance industry in Pakistan.

The groundbreaking ceremony of FMFB’s new Regional Headquarters Building in June 2019 marked the start of a new era of FMFB’s commitment towards the communities of Gilgit, Baltistan and Chitral Region. The institution has its origins from this region, and therefore, it is close to our heart. Spread over 11,505 sq ft, the building is planned to be completed in 2 years and shall house Bank Branch, Bank Of�ces, Training Development Centre, Regional and Area Of�ces. The building will be the �rst-of-its-kind LEED certi�ed and environmentally friendly structure in Gilgit Baltistan. It would also employ solar as a source of power which would add to its green credentials.

We believe customer experience is the key differentiator for

28


During the course of the last couple of years, the key focus of the FMFB Management has been �ve priority areas, achieve sustainable growth by focusing on core competencies, embrace digital as the way forward, ensure excellent governance and the highest ethical standards, improve the quality of life of clients and, lastly, strengthen the bank’s resilience to external shocks. These form the main pillars of FMFBs long term sustainability and enabled the Bank to grow exponentially as well as responsibly. Micro�nance in Pakistan is going through a major evolutionary leap, with key partner institutes eyeing digital �nancial solutions to expand their outreach, is clear indication that in the near future we would witness �nancial services that are cost ef�cient, business models that are robust and outreach that extends to the customer’s doorstep. While there were clear links between the sector’s slowdown and the country’s

FMFB in today’s competitive micro�nance industry. In order to enhance customer experience FMFB had previously developed and piloted a completely digital tablet-based Loan Origination System (LOS) which allowed FMFB to deliver a simpler and shorter customer onboarding experience. Based on the last 2 years’ of learning and investment FMFB has continuously improved this application for the bene�t of its customers. Over the course of the next year, this application would be further upgraded to include a state-of-the-art credit scoring mechanism which would further strengthen the credit underwriting process. With this innovation FMFB intends to unlock new markets and customer segments.

4FMFB is committed to its vision and mission to expand outreach by continuing to grow its presence in all provinces, especially the underserved regions of Pakistan. In the coming year, the bank plans to open branches in 14 new locations.

FMFB believes in the importance of human capital

development via acquisition of competencies and capacity building of its people. The values of excellence, progressiveness, integrity, customer focus and meritocracy are key to ensuring that FMFB continues to grow with responsibility and in a sustainable manner. The bank shall invest on developing the aptitude and competence of its people through well-designed training programs which emphasize continues learning.

I would like to close my statement by thanking all our stakeholders, our customers, our board of directors and above all, our customers. Your continual support has been a source of inspiration that motivates us to grow, improve and innovate. Thank You.

Mr. Muhammad Amir Khan

29


FMFB continued its growth trajectory in 2019 despite a challenging economic environment. The gross loan portfolio increased by 33%, while active clients increased by 15% to 485,505. FMFB offers a diversi�ed range of credit products

based on customer needs for economic activities like agriculture, livestock, micro-enterprises and for other social needs such as housing and education.

FMFBs gross loan portfolio encompasses diversi�ed customer segments, re�ecting FMFBs market-leading range of loan products. The main customer segment is livestock/agriculture, a mainstay of Pakistan’s economy, which comprises of 44% of FMFBs overall portfolio. This is followed by Enterprise Finance (up to PKR 150K – 17%) and

Upper End Micro Enterprise �nance (PKR 150K to PKR 1MM – 16%), which forms 33% of FMFBs loan portfolio. The third main client segment, Fixed Income (Pension/Salary), comprises of 13% of FMFBs portfolio. The share of Housing Finance in FMFBs portfolio has continued to increase since its launch in 2017 and reached 10% in 2019.

LOAN PORTFOLIO

ASSET PORTFOLIOIn 2019, FMFB’s network expanded to 206 locations encompassing 163 full service branches, 36 Permanent Booths (PBs) and 7 Pakistan Post sub-of�ces in Pakistan. The

geographical spread of FMFB, especially presence in remote locations, enables the organization to achieve its mission of �nancial inclusion.

Punjab

Sindh

Gilgit-Baltistan

Khyber Pakhtunkhuwa

Azad Jammu Kashmir

Balochistan

Capital Territory

Total

77

40

22

15

2

6

1

163

28

8

-

-

-

-

-

36

3

4

-

-

-

-

-

7

108

52

22

15

2

6

1

206

74

40

19

15

2

4

1

155

22

5

2

-

-

-

-

29

12

7

-

-

-

-

-

19

108

52

21

15

2

4

1

203

ProvinceBranch PB SO Total Branch PB SO Total

2019 2018

ASSET PORTFOLIO

Number of Active Borrowers (’000)600

500

400

300

200

100

-

194

305

424 486

2016 2017 2018 2019

Gross Loan Portfolio (PKR Million)35,000

30,000

25,000

20,000

15,000

10,000

5,000

-

6,988

14,308

23,404

31,066

2016 2017 2018 2019

30


Average Loan Size Disbursed - PKR

Loan Size-Wise Disbursement % - 2019

37,42647,690

56,214

73,355

2016 2017 2018 2019

The average loan size in FMFBs loan portfolio increased by 30% to PKR 73,355 re�ecting the high in�ation rate in 2019 and FMFBs continued growth in the Upper End Microenterprise segment (PKR 150K to PKR 1 MM) and Housing Finance (PKR 150K to PKR 0.5 MM).

LOAN SIZE

Outstanding Portfolio - PKR in Million

12,000

10,000

8,000

7,000

6,000

4,000

2,000

-Agriculture Livestock Enterprise Upper End

MicroEnterprise

FixedIncome

HousingFinance

2016 2017 2018 2019

Agriculture Livestock Roshanzar Roshanzar + Fixed Income HousingFinance

StudentLoan

PIFEnterprise

100%

80%

60%

40%

20%

0%

UptoPKR 1mln UptoPKR 500k UptoPKR 150k UptoPKR 100k UptoPKR 50k

In terms of active borrowers, the ratio of male-female borrowers was 67:33. FMFBs Female Borrower portfolio

exhibited a 7% YoY Client Growth and 19% YoY Portfolio Growth.

GENDER MIX

Number of Customers (’000)

600

500

400

300

200

100

-

143

196

274325

2016 2017 2018 2019


6,123

10,67417,685

23,777

2016 2017 2018 2019

Male Female

35,000

30,000

25,000

20,000

15,000

10,000

5,000

-

31


In FMFBs loan portfolio 67% of total clients are classi�ed as residing in rural areas, demonstrating the institution's

commitment to �nancial inclusion.

RURAL AND URBAN CONCENTRATION

Number of Customers (’000)

600

500

400

300

200

100

-

143

196

274325

2016 2017 2018 2019


35,000

30,000

25,000

20,000

15,000

10,000

5,000

-

2,730

4,854

7,951

9,069

2016 2017 2018 2019

Urban Rural

In 2019, FMFBs liability portfolio grew by 23% to PKR 38.4 Bn. Liability products of the FMFB are targeted at multiple market segments – individuals, enterprises and corporations. FMFB focuses on both high net worth

individuals and low income segments, women, professionals, private organizations and government departments, etc.

LIABILITY PORTFOLIO

Number of Depositors (’000)

1,400

1,200

1,000

800

600

400

200

-

45,00040,00035,00030,00025,00020,00015,000

5,000-

458

718

9871,222

2016 2017 2018 2019

Amount of Deposits - PKR in Million

12,217

20,887

31,129

38,404

2016 2017 2018 2019


25,000

20,000

15,000

10,000

5,000

-CurrentAccount

FirstCurrent

PlusAccount

FirstSaving

Account

FirstPro�t

Account

FirstPensionAccount

UBBA TermDeposit

2017 2018 2019

32


1. Hunar Foundation The First Micro�nance Bank entered into an alliance with the Hunar Foundation, a technical training institute providing vocational training to the youth, in order to provide �nancing to its Alumni for their enterprises.

2. Winrock – PAD As part of an alliance with Winrock Ltd. Under the Pakistan Agricultural Development (PAD) Project , FMFB is to offer �nancing to farmers trained by Winrock Ltd on 4 small crops: Dates, Chilli, Banana and Tomato.

3. Saeeda Mandviwalla/Essensuals Hairdressing The First Micro�nance Bank collaborated with Saeeda Mandviwalla of TONI&GUY Karachi, to provide vocational training skills, mainly entrepreneurial and leadership skills, to beauty parlour owners and technicians. The aim of this endeavour is to encourage these women to improve their livelihoods by facilitating the growth of their businesses, while availing �nancing from FMFB. This seminar took place on 23rd October at Beach Luxury Hotel, Karachi.

ALLIANCES

1. LOS – Insta 48 FMFBs Loan Origination System (LOS)- Insta-48 providing end to end loan processing was developed and launched in Jan 2019. The tablet based LOS leads to quicker processing of loans, increased work-�ow ef�ciency and provides greater client- convenience. By end-2019 41 Branches were disbursing loans through Insta 48. A total of 18,225 loans were disbursed using the system.

2. Loan Repayment through UBL Omni As part of FMFBs alliance with UBL OMNI for repayment of loans 112K transactions were conducted of PKR 643 Mn in 2019.

3. Mobile Banking App – FIRST Touch Banking FMFB continued to improve the features and functionality of its mobile banking app –FIRST Touch

Banking. In 2019, 90K transactions were conducted through FIRST Touch Banking App of PKR 1.15 Bn.

4. LRMIS Implementation In order to promote agriculture lending, Punjab Land Revenue Authority (PLRA) trained FMFB staff and allowed access to digitalized land records through web based access to their system i.e. Land Records MIS (LRMIS). This provides time and place convenience to customers. Through LRMIS FMFB can generate documents related to agricultural lands and mutation of these lands at the branch level. The pilot for the same was initiated in one branch in South Punjab in 2019. The same is being expanded to other rural branches of Punjab in 2020.

DIGITAL

33


BOARD OF DIRECTORS

Rayomond Kotwal has over three decades of experience. He has worked in senior �nance roles with United Bank Limited, NIB Bank Limited, Citibank NA, Citi Cards Canada Inc. and ICI Pakistan Limited. Mr. Kotwal is currently the Chief Financial Of�cer of Habib Bank Limited. Mr. Kotwal holds a Masters in Business Administra-tion (Finance) from the Institute of Business Administration, Karachi and a BS and MS in Electrical Engineering from the Massachusetts Institute of Technology, Cambridge Massachusetts. In addition to FMFB, Mr. Kotwal current directorships include: Habib Allied Holdings Limited, UK – Director, HBL Bank, UK – Director, HBL Asset Management Limited – Director.

Rayomond KotwalChairperson

Jesse C. Fripp has over two decades of experience in strategic leadership and governance, �nancial services delivery, capital strategy and fundraising, and human and organizational development. Currently, Mr. Fripp is the General Manager of the Aga Khan Agency for micro�nance. Past experience includes Enclude Ltd, ShoreBank International, Bearing Point Emerging Markets, and Global Communities/Vitas Finance. Mr. Fripp has built and led inclusive �nance institutions, corporate consulting business lines, commercial micro�nance and digital �nancial services business lines, and multiple merger, acquisition and business transformation initiatives in more than two dozen emerging markets around the world. Mr. Fripp holds a Masters in Public Management with concentration in International Economic Development from University of Maryland (USA).

Jesse Culain Fripp

Abrar A. Mir has diversi�ed professional experience of over two decades with United Bank Limited, National Commercial Bank (Jeddah), Citibank N.A, Cupola Investment Ltd (Dubai), and ICI Pakistan Limited. At United Bank Limited, he was instrumental in conceiving and developing UBL Omni – mobile and branchless banking business, convincing the Government of Pakistan and multiple donor agencies to digitize payments i.e. Flood Relief Program (Watan cards), World Food Program, and Benazir Income Support Program (BISP). Mr. Mir led the Bank to win GSMA Global Mobile Award 2012 for “Best Use of Mobile in Emergency or Humanitarian Situations”, as well as “Best Internet Banking for Consumers – 2014” award by Global Finance. Currently, Mr. Mir is the Chief Innovation & Financial Inclusion Of�cer at Habib Bank Limited. He has been a speaker at various international and local forums organized by Bill & Melinda Gates Foundation, GSMA, EBRD, UNDP, FI 2020 by Accion, CGAP, Asobancaria Colombia, DFID, SEEP and State Bank of Pakistan. Mr. Mir holds a Masters in Business Administration from Illinois Institute of Technology, Chicago (USA) and a B.E Electronics engineering from the College of Electrical and Mechanical Engineering, Pakistan. He has also completed a course in “Strategic Leadership in Inclusive Finance” from the Harvard Business School (USA).

Abrar Ahmed Mir

34


Masanari Yanagiuchi has over a decade and a half of professional experience in public bilateral institutions in Japan since he started his professional career in the Japan Bank for International Cooperation (JBIC). Currently, Mr. Yanagiuchi is a Director in Private Sector Partnership and Finance Department at the Japan International Cooperation Agency (JICA) where his responsibilities included a preparatory survey (PPP infrastructure projects) and portfolio management of private sector investment �nance by JICA. Mr. Yanagiuchi holds a Bachelor of Economics from the Hitotsubashi University, Tokyo (Japan).

Masanari Yanagiuchi

Maria C. Largey has over a decade and a half of varied experience in the �nancial sector, with CDC Group Plc, Agora Micro�nance Partners LLP, Opportunity International, and J.P Morgan Asset Management. She is currently the Investment Director with the CDC Group Plc, where she is leading CDC’s direct equity investments in �nancial institutions in Africa and Asia. Ms. Largey’s core competencies include structuring investments and designing and implementing fund raising strategies. Ms.Largey holds a Bachelor of Science (Biological Sciences) from the University of California, Santa Barbara (USA). Ms. Largey’s current Directorships include: Green Shoots Foundation -Chairperson, Advans Group – Chair of Governance Committee and Catalyst Micro�nance Investors – Director.

Maria Christine Largey

Maya I. Ismail has over a decade and a half of experience in the �nancial services sector, with Habib Bank Limited, The First MicroFinanceBank Ltd. and Global Securities Pakistan Ltd. Currently Ms. Ismail is the Head of Strategic Investments at Habib Bank Limited (HBL). She has extensive experience in the monitoring of �nancial services institutions, managing strategic partnerships and strategy formulation. Ms. Ismail holds a Bachelor of Arts (Economics and International Relations) from Smith College, Northampton (USA) and is an Accredited Mediator from the Center for Effective Dispute Resolution, UK

Maya Inayat Ismail

35


Zahir Riaz is a Partner at Orr, Dignam & Co. and heads the Firm’s Islamabad of�ce. Mr. Riaz has more than three and half decades of experience and specializes in the areas of corporate / commercial law, mergers & acquisitions, banking & �nancing, capital markets, construction & infrastructure, privatizations and energy & natural resources. Mr. Riaz continues to act on behalf of leading domestic and multinational organizations and has been consistently ranked by Chambers & Partners and Legal 500 as a leading lawyer of Pakistan. He completed his legal education from the London School of Economics and Political Science and the University of Cambridge (UK), and quali�ed as a Barrister from Gray’s Inn (UK).

Zahir Riaz

Muhammad Amir Khan - CEO

Sobia Chughtai is an experienced professional with more than two decades of experience in the �nancial sector. She has worked with Habib Bank Limited, Al Faysal Investment Bank Limited and Fauji Fertilizer Company. She has served as the Regional Corporate Banking Head-HBL for 10 years. Currently, Ms. Chughtai is the Senior Credit Of�cer- Corporate Risk with Habib Bank Limited. Ms. Chughtai holds a Masters in Business Administration from the Lahore University of Management Sciences (Pakistan), and a B.Sc Electrical Engineering from the University of Engineering and Technology, Lahore (Pakistan). She has attended several local and international courses and seminars.

Muhammad Amir Khan brings with him over 22 years of extensive experience in consumer and commercial banking with the Standard Chartered Bank, ABN Amro Bank and Royal Bank of Scotland. He has also served as the CEO of Mobilink Micro�nance Bank (then Waseela), where he played an instrumental role in setting up the new micro�nance bank.He joined FMFB in 2012. Amir holds a Masters in Business Administration from the Institute of Business Administration, Karachi (Pakistan).

Sobia Chughtai

BOARD OF DIRECTORS

L TO R (FRONT ROW)

Maya Inayat IsmailSobia ChughtaiRayomond KotwalAbrar Ahmed MirMasanari Yanagiuchi

Director

Director

Chairman

Director

Director

L TO R (BACK ROW)

Amir Masood KhanZahir RiazJesse Culain FrippMaria Christine Largey

Chief Executive Of�cer

Independent Director

Director

Independent Director

36


MANAGEMENT

Muhammad Amir Khan brings with him over 28 years of extensive experience in consumer and commercial banking with the Standard Chartered Bank, ABN Amro Bank and Royal Bank of Scotland. He has also served as the CEO of Mobilink Micro-�nance Bank (then Waseela), where he played an instrumental role in setting up the new micro�nance bank.He joined FMFB in 2012. Amir holds a Masters in Business Administration from the Institute of Business Administration, Karachi (Pakistan).

Muhammad Amir KhanChief Executive Of�cer & President

Wajid Ali has more than 32 years of diversi�ed experience with Pakistan Tobacco Limited (PTC) and Khushhali Bank. He has worked at multiple senior roles in PTC, speci�cally in the Human Resource department, both at factory locations and the Head Of�ce. His last assignment in PTC was as Area Head of Reward for South Asia Area. Thereafter, Wajid was sent on a secondment to British American Tobacco, Indonesia as HR and Reward Advisor. After almost three decades of serving PTC, Wajid moved to Khushhali Bank as Head-Human Resources and served in the micro�nance sector for almost six and half years. Wajid holds a Masters in Economics from University of Peshawar and has completed numerous certi�cations in HR from international institutions.

Wajid AliHead, Human Resources

Ali Raza Anjum has over 26 years of diversi�ed experience in Risk Management, Compliance, Credit, Internal Audit, Banking Operations and Human Resource functions in leading commercial and micro�nance banks at senior management levels. Ali joined the FMFB in 2012. He holds multiple national and international quali�cations including FCMA, DAIBP, CIA, CISA, CFE, CRISC, CRMA and a Masters in Public Administration from Quaid-e-Azam University, Islamabad (Pakistan).

Ali Raza AnjumChief Operating Of�cer

Adil brings with him 17 years of diversi�ed experience of Corporate Governance, Corporate Restructuring, Strategic Planning & Implementation, Financial/Treasury Management, Financial Analysis, Reporting & Tax Planning. His last role was with IGI Financial Services as Chief Financial Of�cer and Company Secretary. He has also worked with Allmed Group of Companies as Group Financal Controller & Head of Legal for three years and was earlier associated with A.F. Ferguson & Co., Chartered Accountants (PwC Pakistan). He is a Chartered Accountant and holds LLB from University of Karachi (Pakistan).

Adil Ali AbbasiChief Financial Of�cer

37


Jalal brings with him 21 years of diversify technological experience. During his career he has streamlined IT Departments, revamped infrastructure and introduced the latest technologies. Prior to FMFB joining, Jalal worked as Chief Information Of�cer at Service Sales Corporation for 4 years. He also worked with Warid Telecom for 10 years at various management positions, responsible for providing leadership and strategic planning of security, implementation of business processes, technical controls and deployed security management frameworks. His last role in Warid was Director IT Governance and Security. During his professional career he also worked with Department of National Defence – Canada for 3 years. Jalal holds MBA/MIS Degree from National College of Business Administration and Economics Lahore, Business Information Systems from Algonquin College Ontario. He also holds Certi�-cation of Lead Auditor Information Security Management Systems, Microsoft Certi�ed Systems Engineer and Lead Auditor Quality Management System.

Mr. Syed Jalal Shah AhmedChief Information Of�cer

Sohail Malik brings with him more than 21 years of diversi�ed experience and vast exposure in Digital Financial Services, Branchless Banking & Financial Inclusion areas in leading Commercial, Micro�nance Banks and Telecom industries, holding various senior management positions in both industries. He started his professional career with CITI Bank in 1999 and worked with various Pakistani and Multinational telecom companies and banks. His last position was with FINCA Micro�nance Bank as Head Digital Financial Services, Prior to this he was branchless banking head in MCB bank. Sohail is also registered consultant to Pakistan Telecommunication Authority (PTA). Sohail holds a Masters in Business Administration (Marketing) from Preston Institute of Management Sciences & Technologies (PIMSAT).

Sohail MalikChief Digital & Financial Inclusion Of�cer

Kashif Zafar brings with him more than 27 year experience in SME Lending, Product Development and Project Management. Kashif joined the bank in 2009 as Product Manager. Besides, Product Development, he has led the bank project team as Head PMO for transformation from indigenous distributed banking system to centralized core banking solution. He has also been playing leading role for digital projects as Head DFI Strategy. Currently he is looking after Product Management & Research Department in addition to Communications Department. Other than having MBA (Finance) degree, Kashif is also Associate Member of Institute of Bankers in Pakistan.

Kashif ZafarHead, Communications

Muhammad Imran Rao has over 27 years of experience in Banking Operation and Technology, and has worked with leading banks of Pakistan including MCB and Bank of Punjab. His core competencies include management of wholesale and offshore Banking Operations, Credit Operations, Business Continuity Management and Operational Risk. Imran holds a Masters in Business Administration degree from Philippine School of Business Administration, Manila and a B.A from University of Karachi. Imran has completed various local and international certi�cations on Banking and Management.

Muhammad Imran RaoHead, Banking Operations

38


Yasir brings with him 19 years of diversi�ed experience in Corporate Law and Legal Governance and has worked nationally and internationally in the legal �eld. His core competency includes Strategic Legal Counsel, Complex Negotiations, Business Advisory & Solutions. His last role was with LMK Resources Pakistan (Private) Ltd as General Counsel. Yasir has joined FMFB in June 2017. He holds LLB(Honours) degree from University of Wolverhampton, Holborn College, London, (United Kingdom).

Yasir MasudCompany Secretary & General Counsel

Ch. Ihsan Mehmood has been a part of banking industry for over 14 years, with diversi�ed experience in the �eld of Risk Management, Compliance, Internal Audit and Banking Operations with reputable Micro�nance Banks. His core competencies include prevention of �nancial crimes, inculcating compliance culture, business process re-engineering, identi�cation, assessment & mitigation of compliance risk. Ihsan joined FMFB in November 2012. He holds a Masters in Business Administration with specialization in Finance, ACMA - Intermediate and Advance Leadership Course from Singapore.

Chaudhary Ihsan MehmoodHead, Compliance

Zehra has extensive experience of Risk Management spanning over more than 24 years in leading commercial banks of Pakistan. She is a commercial and Shariah compliant banking expert and her core competency includes enterprise-wide risk management. Zehra joined FMFB in 2015. She holds a Masters in Business Administrationfrom Institute of Business Administration, Karachi (Pakistan) and has completed a Banking Diploma from The Institute of Bankers in Pakistan. Zehra also holds various other local and international certi�cations in Risk Management and Islamic Banking.

Zehra KhalikdinaHead, Risk Management

Muhammad Siddique Ahmed is a seasoned auditor and a fraud examiner with 20 years of international experience across South Asia, Africa, Latin America and the United States. He has worked for FINCA International as the Regional Auditor where he served in various roles across FINCA’s vast network. He also served with the Big 4- KPMG and a leading telecommunication company. He has designed and implemented global internal audit, risk management and anti-fraud programs and performed complex corporate fraud investigations in several countries. Mr. Ahmed is an Associate Chartered Certi�ed Accountant (ACCA), Certi�ed Fraud Examiner (CFE), Certi�ed Professional Internal Auditor and a Certi�ed Financial Consultant.

Muhammad SiddiqueHead Internal Audit

39


MANAGEMENT

L TO R (STANDING POSITION)

Adil Ali AbbasiMuhammad SiddiqueSyed Jalal Shah AhmedSohail MalikZehra KhalikdinaYasir MasudMuhammad Imran RaoKashif ZafarChaudhary Ihsan Mehmood

Chief Financial Of�cer

Head Internal Audit

Chief Information Of�cer

Chief Digital & Financial Inclusion Of�cer

Head Risk Management

Company Secretary & General Counsel

Head Banking Operations

Head Communication

Head Compliance

L TO R (SITTING POSITION)

Ali Raza AnjumAmir Masood KhanWajid Ali

Chief Operating Of�cer

Chief Executive Of�cer & President

Head, Human Resources

40


41


OVERVIEW OF THE BOARD

integrity and in compliance with the law, internationally accepted principles and best practices of corporate governance and business ethics. a) The Board ensures that the institution’s mission, long-term objectives are well de�ned and reviewed periodically. The Board directs management in the ful�lment of the mission. b) The Board approves the strategies necessary to achieve the institutional objectives, with a view to the social mission of the organisation, competitive landscape and the risks inherent in the strategies.c) The Board ensures that the institution has adequate resources or it acquires the necessary resources to implement the agreed upon strategies, in light of the institution’s short- and long-term �nancial and social objectives.d) The Board ensures that the Bank manages risk

effectively by approving the institution’s risk tolerance and the institution’s risk management framework.e) The Board works to enhance the image of the institution and plays an important part in shaping the institutions image, prestige and credibility.f) The Board ensures that the institution ful�ls its legal obligations to protect it from unnecessary liability and legal action. It monitors the institution’s compliance with its internal policies and procedures as well as pertinent legal requirements including statutory and regulatory requirements laid down by the Central Bank or other relevant regulatory authorities. g) The Board serves as the institution’s steward. It is the apex overnight body and is entrusted to protect the institution and ensure that it is managed in a manner that is consistent with agreed values and goals.

The Board of Directors is a body of appointed members that jointly oversee the activities of the organisation, represent the interests of the organisation’s stakeholders and protect the organisation’s reputation. The Board of Directors is responsible for the governance of the institution and is committed to ensuring that its business and operations are conducted with

RELATED PARTIES

The Policy for related party transaction was previously part of the accounting policy. This policy is now prepared on a standalone basis for approval from the Board and will be reviewed / updated every two years or upon any change inthe regulatory / statutory requirement.

2. PURPOSE

This Policy is intended to provide guidance and direction with respect to identi�cation, review, approval and disclosure of Related Party Transactions. Detailed procedures will be developed as a part of implementation

of this policy which should be read in conjunction with those procedures.

It is intended to establish the bank’s policy and identify roles and responsibilities for approvals, exposure monitoring, reporting and disclosures of related party (RP) transactions. This document also sets out the rules to de�ne parties considered to be related under different applicable frameworks and regulations.

a) Approval of related party transactions by the Board of Directors onrecommendation of board audit

1. SCOPEThis policy sets out the basis for identi�cation and disclosure of related party transactions as required under:

i) International Accounting Standard (IAS) 24ii) SBP BSD Circular 11of 2003 under Note 33 for Related Party Transactions

42


committee or, as relevant, the board riskmanagement committee.b) Financial statements disclosuresc) Submission to the SBP

d) Documentation related to RP transactions to be maintained as per SECP regulations.e) SBP BSD Circular 11of 2003 under Note 33 for Related Party Transactions

International Accounting Standards State Bank of Pakistan The Securities and Exchange Commission of Pakistan

SALIENT FEATURES OF TORs OF THE BOARDCOMMITTEES

TOR of HR Committee

The responsibilities of HR Committee are as follows:

1) Approve and recommend to the Board human resource related strategies and policies. 2) To review HR implementation and working on a quarterly basis or as required from time to time. 3) To recommend to the Board, all human resources polices including but not limited to policies for Remuneration, Bene�ts, Performance Management and Other Compensation Plans for all the staff members of the Bank including Policy for Staff Training, Career Development and Succession Planning.

4) To review staff appointment, evaluation mechanism and the policy of rewards and salaries to determine whether these are suf�cient, fair and clear in order to ensure quali�ed people are attracted and maintained in the institution. 5) To review staff handbook in order to ensure that the employee grievance handling procedures are functional and i mpartial. 6) Review the standards used in performance evaluation of all the staff throughout the organization. Recommend to the Board the policy and criteria for performance based bonuses for all employees of the Bank. 7) Periodically review the composition of the institution’s workforce in terms of diversity and equal opportunity. Periodically review the company’s overall recruitment, compensation, terminal & retirement bene�ts, development plans, succession planning, promotion, retention programmes, plan of organization design and re-structuring. 8) To recommend to the Board the selection, evaluation, compensation (including retirement bene�ts) and Succession Plan of the CEO. 9) Set the requirements and criteria of appointing members direct reportees of CEO speci�cally; Chief Operating Of�cer, Chief Financial Of�cer/Company Secretary, and Head of Internal Audit (based on the recommendations of the Audit Committee). Evaluate their performance and replacement plan. Ensure that clear policies are in place regarding the rewards, compensations, salaries and any other bene�ts to the Senior Management corresponding to their expertise and quali�cations. 10) Review recommendation made by CEO for dismissal of any direct reportees of CEO. Review exit interviews of Senior Managers (direct reports of CEO) when they leave the institution. 11) Approve the annual goals for the CEO, evaluating the performance of the CEO against those objectives and, after considering comparative data and other relevant information, recommending the CEO’s compensation to the Board for approval at the time of contract renewal or annually as appropriate. 12) To deal with any other HR related matter as may be decided by the Board.

COMPOSITIONMr. Rayomond KotwalChairperson

Ms. Maya Inayat IsmailMember

Mr. Zahir Riaz Member

Mr. Wajid Ali Committee Secretary

43


a) Credit Risk Management• Setting the Bank’s broad credit risk parameters and limits and establishing overall credit risk management principles. This involves an effective portfolio management strategy, keeping in view the earnings growth target and capital constraints. • Ensuring that the bank has a robust risk management framework and the same incorporates the concept of authority with accountability. • Approving any exceptions to policies or tolerance limits whereby authority to do so has been delegated by the Board. • Reviewing portfolio quality (including classi�ed portfolio). • Reviewing the new product programs from the risk perspective and periodically reviewing the existing programs, if needed, for continuous alignment with changes in business dynamics and regulatory environment.

b) Market and Liquidity Risk Management• Maintain a sound and effective market and liquidity risk management architecture. • To supervise that the products/portfolios exposed to market risk and liquidity riskare identi�ed, measur and monitored. • Review the systems, tools and methodologies for measuring, monitoring and reporting market risk and liquidity risk.

d) Operational Risk• Review Operational Risk Management Framework and policy changes and set strategic direction in respect of operational risk. • Formulate and establish the Bank’s overall operational risk tolerance level. • Monitor key risk indicators. • Assess the effectiveness of operational risk management process, and address changes where required. • Monitoring the business continuity plan, Disaster Recovery measures and other risk mitigation techniques instituted by the FMFB.

c) Compliance Function• Recommend Compliance policy for the approval of Board. • Oversee that suf�cient resources, authority and tools are provided to compliance function and are aligned with the growing need of bank. • Oversee that compliance risk identi�cation, assessment, monitoring and controlling at appropriate levels. • Evaluate and supervise independence of compliance function. • Receive and review periodic compliance reports to oversee corrective measures. • Periodically assess the extent to which the bank is managing compliance awareness & culture and its compliance risk effectively.

5) Oversee the Bank’s overall portfolio including major risk exposures and concentrations. 6) Oversee that the Bank has proper systems/tools/methodologies and controls to measure, monitor and manage all material risks. 7) Review and ratify or approve exceptions to risk management policies where powers to do so have been delegated by the board.8) Oversee that the Bank has robust management information systems relating to risk reporting. 9) Oversee that risk management best practice is followed in all areas of the bank. 10) Supervises that resources allocated for risk management are adequate given the size nature and volume of the business. Staff of Risk Management and Compliance Function possesses suf�cient knowledge and expertise in their relevant �eld. 11) Following are the speci�c responsibilities under the Risk Committee:

TOR of Risk Committee:

The responsibilities of HR Committee are as follows:

1) Oversee that the Bank has clear, comprehensive and well documented framework relating to the management of all material risks. 2) Review policies in line with signi�cant changes in internal and external operating environment. 3) Supervision of the bank’s risk management policies and framework are adequate to support its overall business strategy.4) Review the Bank’s overall risk appetite for all material risks and oversee that it is consistent with the long-term strategy of the Bank.

COMPOSITIONMr. Jesse Culain FrippChairperson

Ms. Sobia ChughtaiMember

Mr. Abrar Ahmed MirMember

Ms. Zehra KhalikdinaCommittee Secretary

44


3) Monitor the implementation of the technological developments in the FMFB-P as well as all other innovations in business operations, products and services, processes and procedures, delivery channels, risk management, marketing and brand development, etc. The Secretary -FIIC will update the FIIC members on a monthly basis, and the FIIC will and update BOD in quarterly meetings 4) The committee will also decide on improving / adopting / abandoning initiatives as required 5) Set and seek budget approvals from BOD for any digital and innovation initiative 6) To deal with any other business innovation matter as may be decided by the Board 7) Oversee and guide bank’s all new initiatives related to Digital and Technology, including Branchless Banking and Financial Inclusion.

TOR of Internal Audit Committee

The Internal Audit Committee is carrying out various responsibilities related to �nancial statements, internal control, internal and external audit, compliance related and reporting and other responsibilities which are narrated below:

1) Financial Statements

• Review signi�cant accounting and reporting issues, including complex or unusual transactions and highly judgmental areas, going-concern assumption, and recent professional and regulatory pronouncements, and understand their impact on the �nancial statements. • Review with management and the external auditors the results of the audit, including any dif�culties encountered. • Review the annual �nancial statements, and consider whether they are complete, consistent with information known to committee members and re�ect appropriate accounting principles. • Review with management and the external auditors all matters required to be communicated to the committee under Generally Accepted Auditing Standards. • Understand how management develops interim �nancial information, and the nature and extent of internal and external auditors’ involvement. • Review interim �nancial reports with management and the external auditors before �ling with regulatory authorities, and consider whether they are complete and consistent with the information known to committee members.

COMPOSITIONMr. Maria Christine Chairperson

Ms. Sobia ChughtaiMember

Mr. Maya Inayat IsmailMember

Mr. M. Siddique AhmedCommittee Secretary

e) Information Security• Recommend Information Security policy for the approval of Board. • Oversee implementation of information security framework including Cyber Security Action Plan and Incident Reporting Mechanism to identify vulnerability, assess its impact and accordingly implement controls along with continuous monitoring of gaps through test plans. • Review signi�cant threats and exposure to FMFB as per the risk assessments carried out on periodic basis. • Review measures and initiatives on IT security awareness across the organization. • Review of quarterly reporting on security threats, incidents and breaches (if any).

TOR of Financial Inclusion and Innovation Committee (FIIC)

The responsibilities of FIIC are as follows:

1) Review the existing Bank’s business activities, products and services, processes and procedures, client needs, market trends and benchmarks, competition, strategic growth opportunities etc. 2) Identify innovations, changes/modi�cations in every function of the Bank in line with the strategic direction and mission. Recommend and approve innovations and changes in policies in view of the innovations, as determined by market dynamics, competition, growth opportunities and strategic direction, as needed

COMPOSITIONMr. Abrar Ahmed MirChairperson

Ms. Jesse Culain FrippMember

Mr. Maria Christine Member

Mr. Sohail MalikCommittee Secretary

45


2) Internal Control

• Consider the effectiveness of the Bank’s internal control over annual and interim �nancial reporting, including information technology security and control. • Understand the scope of internal and external auditors' review of internal control over �nancial reporting, and obtain reports on signi�cant �ndings and recommendations, together with management's responses.• Review critical process & control design gaps identi�ed during independent evaluation by the bank’s Internal Audit Department as well as by the external stakeholders such as the consultants, external auditors and State Bank of Pakistan and monitoring remediation status thereof.• Reviewing signi�cant violations reported in relation to the best practices of corporate governance identi�ed by Internal / External Audit and/or any other regulatory body and monitoring resolution thereof.

3) Internal Audit

• Review with management and the Head of Internal Audit Department (HIA) the Audit Policy & Procedures, plans, activities, staf�ng, and organizational structure of the internal audit function, if AC needs to discuss. • Ensure there are no unjusti�ed restrictions or limitations imposed on and review and concur in the appointment, replacement, or dismissal of the Head of Internal Audit. • Review the effectiveness of the internal audit function, including compliance with The Institute of Internal Auditors' Standards for the Professional Practice of Internal Auditing, applicable laws and regulations and internal policies. • Review all the reports issued by the HIA covering audits, investigations, reviews etc. and provide input and guidance wherever the committee desires so.• Take up with the President/CEO major �ndings of audits and internal investigations and management's response thereto.• On a regular basis, meet separately with the HIA to discuss any matters that the committee or HIA believes should be discussed privately. The HIA will coordinate with the committee to schedule such meetings and will also maintain minutes of such meetings.• Review the communication of key �ndings to external auditors

4) External Audit • Recommend to the Board of Directors the appointment of external auditors and consider any questions of resignation or removal of external auditors.• Review the external auditors' proposed audit scope and approach, including coordination of audit effort with internal audit. • Review the performance of the external auditors. • Review audit fees and provision of any service by external auditors to the Bank in addition to audit of its �nancial statements. • Review and con�rm the independence of the external auditors. • Ensure that, on an ongoing basis, the relationship with the external auditors meets all current international standards applicable to a proper bank/auditor relationship. • It must meet with the external auditors in the absence of management.

5) Compliance • Review the effectiveness of the system for monitoring compliance with laws and regulations and the results of management's investigation and follow-up (including disciplinary action) of any instances of non-compliance. • Review the status of compliance on exceptions/irregularities reported by regulating agencies (e.g. SBP inspections etc.) and external and internal auditors.• Review of audit report/management letter issued by regulatory bodies, external auditors and any other government agencies.

6) Other Responsibilities

In addition to above, the Committee may also like to review the following:

• Perform other activities related to these TOR as requested by the Board of Directors.

46


• Institute and oversee special investigations as needed. • Review and assess the adequacy of the committee’s TOR as and when need arises, requesting Board approval for proposed changes. • Con�rm annually that all responsibilities outlined in these TOR have been carried out. • Evaluate the committee's and individual members' performance on a regular basis.• Review of IRAF for recommending to the board for approval(i) Whistle Blow Unit reporting to AC.(ii) Performance of the Head-IAD is reviewed by AC under Annual Performance Appraisal Process.

49


50


FMFB'S SOCIAL GOALSTo respond to its mission, FMFB has formulated a set of Social Goals for 2016-2020, with annual key performance indicators (KPIs) for a 5-year period. Board of FMFB

monitors and receives the achievement of the pre-set annual targets against each social goal.

The members of the Board of Directors are committed to the social mission of FMFB;

Target speci�c client segments and offer client centric products;

Improve access to social needs by offering client centric �nancial solutions;

Reduce barriers to �nancial inclusion for clients

Foster green environment friendly opportunities;

Clients understand their �nancial rights and obligations when dealing with FMFB;

Monitor employee satisfaction and maintain employee turnover;

Employee compensation levels are at least the national minimum wage;

FMFB’s clients have positive and sustainable improvement in Quality of Life (QOL) indicators

Strong participation A majority of employees completed the survey

Strong Comparison to the NormsNo items were notably below the Norms

Engagement scoreAll Engagement items are notably above the normFMFB employees look forward to coming to work signi�cantly more (+22%) than the norm

89%favorable

96%

As part of FMFB’s Social Goals, a mix-methods research project was initiated in order to evaluate and track the changes in the Quality of Life of FMFB’s clients attributable

to FMFB’s products. FMFB also developed an environmental risk policy and created awareness of environmentally responsible conduct among clients.

State of Compliance Score Key: Complete = 2, Partially Complete=1, Incomplete=0.Note on Methodology: To obtain the State of Compliance score for each social goal an equally weighted average of the state of compliance scores for annual targets of that social goal is calculated.

The achievement status against Annual KPIs for 2019:

2

1.5

1

0.5

0

Stat

e of

Com

plia

nce

BoD TargetClient

Segments

Access toSocialNeed

Products

Client Rights &

Obligations

FinancialInclusion

EmployeeSatisfaction

EmployeeCompensation

Environment

Annual Social Goals

51


JUNE2015

MAY2017

FCP Framework Approved: A Financial Consumer Protection

Framework de�ning the objectives and principles of Financial

Consumer Protection at FMFB approved FMFBs Board of Directors.

Gap Analysis Conducted: FMFBs Financial Consumer

Protection Unit (FCP Unit) developed a gap analysis tool and conducted a gap analysis of FCP Essential Practices and

Standards which identi�ed gaps and recommendedactions to improve consumer protection

to the FCP Team which comprised of FMFBs CEO and

senior management.

Financial Literacy Infomercials Launched: FMFB’s client base contains a signi�cant number of clients who are illiteracy. In order to effectively increase �nancial literacy and promote �nancial inclusion FMFB developed 10 Financial Literacy infomercials in Urdu language covering topics such as Financial Planning and how to access �nancial products. The infomercials are displayed on Televisions in FMFB Branch waiting areas and are available online through FMFBs social media channels.

Achieved Smart Certi�cation for Client Protection: FMFB received Client Protection Certi�cation by The Smart Campaign after a rigorous independent evaluation of the banks’ policies, procedures and practices by Micro�nanza Rating SRL (MFR), an international rating agency specializing in micro�nance. ) The Smart Campaign is a global effort to embed a set of client-protection principles into the fabric of the micro�nance industry. This Certi�cation is awarded to �nancial organizations that institutionalize the Smart Campaign's seven Client Protection Principles and essential practices.

Gold Price Disclosure Award: l effort to embed a set of client-protection principles into the fabric of the micro�nance industry. This Certi�cation is awarded to �nancial organizations that institutionalize the Smart Campaign's seven Client Protection Principles and essential practices.

Q42017

APRIL2018

Customer Satisfaction, Client Quality of Life and Mystery Shopping Surveys conducted:As part of FMFBs commitment to improving client quality of life and obtaining client feedback to improving products and service delivery FMFB conducted a series of research surveys. The results of the survey were instrumental in improving FMFBs product and service quality and evaluating the effectiveness of consumer protection tools deployed.

OCT2015

Q4-2015TO

Q1 2016

FCP SOPs Approved: FMFBs Management approved Financial Consumer Protection Standard Operating Procedures

(SOPs) outlining the structure of FCP at FMFB and the Essential

Practices and Standards in order to institutionalize

consumer protection at FMFB,

Customer Service Of�cer Hired: Customer Service Of�cer Hired: In order to

assist clients in availing services and improve the dissemination of information about Bank products, Customer Services

of�cers were hired and deployed in key FMFB Branches. This was a

recommendation of the Mystery Shopping and Customer Satisfaction Surveys. MARCH

2018

Deposit KFS Launched:Key Fact Statement for deposit products was launched in order to increase client understanding of the features and costs

of FMFBs deposit products.

JUNE2018

Impact of Complaint Awareness in 2018: Number of complaints increased over 24 times from 186 in 2017 to 4,548 in 2018.

DEC2018

FCP Framework Revision: FMFBsFinancial Consumer Protection Framework was updated and approved by the Board of Directors.

2018 CAF Submitted: FMFBs pro�le for Conduct Assessment Framework, a diagnostic tool introduced by the SBP, submitted for the year to 31st Dec 2018.JAN

2019FEB

2019

JULY2018

FINANCIAL CONSUMER PROTECTION JOURNEY

JUNE2015

MAY2017

FCP Framework Approved: A Financial Consumer Protection

Framework de�ning the objectives and principles of Financial

Consumer Protection at FMFB approved FMFBs Board of Directors.

Gap Analysis Conducted: FMFBs Financial Consumer

Protection Unit (FCP Unit) developed a gap analysis tool and conducted a gap analysis of FCP Essential Practices and

Standards which identi�ed gaps and recommendedactions to improve consumer protection

to the FCP Team which comprised of FMFBs CEO and

senior management.

Financial Literacy Infomercials Launched: FMFB’s client base contains a signi�cant number of clients who are illiteracy. In order to effectively increase �nancial literacy and promote �nancial inclusion FMFB developed 10 Financial Literacy infomercials in Urdu language covering topics such as Financial Planning and how to access �nancial products. The infomercials are displayed on Televisions in FMFB Branch waiting areas and are available online through FMFBs social media channels.

Achieved Smart Certi�cation for Client Protection: FMFB received Client Protection Certi�cation by The Smart Campaign after a rigorous independent evaluation of the banks’ policies, procedures and practices by Micro�nanza Rating SRL (MFR), an international rating agency specializing in micro�nance. ) The Smart Campaign is a global effort to embed a set of client-protection principles into the fabric of the micro�nance industry. This Certi�cation is awarded to �nancial organizations that institutionalize the Smart Campaign's seven Client Protection Principles and essential practices.

Gold Price Disclosure Award: l effort to embed a set of client-protection principles into the fabric of the micro�nance industry. This Certi�cation is awarded to �nancial organizations that institutionalize the Smart Campaign's seven Client Protection Principles and essential practices.

Q42017

APRIL2018

Customer Satisfaction, Client Quality of Life and Mystery Shopping Surveys conducted:As part of FMFBs commitment to improving client quality of life and obtaining client feedback to improving products and service delivery FMFB conducted a series of research surveys. The results of the survey were instrumental in improving FMFBs product and service quality and evaluating the effectiveness of consumer protection tools deployed.

OCT2015

Q4-2015TO

Q1 2016

FCP SOPs Approved: FMFBs Management approved Financial Consumer Protection Standard Operating Procedures

(SOPs) outlining the structure of FCP at FMFB and the Essential

Practices and Standards in order to institutionalize

consumer protection at FMFB,

Customer Service Of�cer Hired: Customer Service Of�cer Hired: In order to

assist clients in availing services and improve the dissemination of information about Bank products, Customer Services

of�cers were hired and deployed in key FMFB Branches. This was a

recommendation of the Mystery Shopping and Customer Satisfaction Surveys. MARCH

2018

Deposit KFS Launched:Key Fact Statement for deposit products was launched in order to increase client understanding of the features and costs

of FMFBs deposit products.

JUNE2018

Impact of Complaint Awareness in 2018: Number of complaints increased over 24 times from 186 in 2017 to 4,548 in 2018.

DEC2018

FCP Framework Revision: FMFBsFinancial Consumer Protection Framework was updated and approved by the Board of Directors.

2018 CAF Submitted: FMFBs pro�le for Conduct Assessment Framework, a diagnostic tool introduced by the SBP, submitted for the year to 31st Dec 2018.JAN

2019FEB

2019

JULY2018

52


MARCH2018

2017 CAF Submitted: FMFBs pro�le for Conduct Assessment Framework, a diagnostic tool introduced by the SBP, submitted for the year to 31st Dec 2017.

Service Quality Unit Created: A dedicated unit was created to improve service quality, a recommendation the Mystery Shopping Survey.

Loan KFS and Standard Product Dialogues Launched:

In order to improve the �nancial literacy of clients and increase

transparency to aid better decision making by clients,

FMFB launched Loan Key Fact Statement (KFS). The KFS is a

fact sheet about loan products and the Standard Product

Dialogues detail important information about the loan

products and loan process to ensure comprehensive verbal

communication to clients.

Client Rights & Responsibilities Placard

Displayed: Two placardswere designed to

illustrate the various rights and responsibilities of a client with

the objective of spread awareness about Rights and

Responsibilities as a client of a Financial Institution.These are

displayed in the client meeting rooms of all FMFB Branches.

NOV2016

JAN2017

Client Rights & Responsibilities

Placard Displayed: A Financial Consumer

Protection Training Module was developed

by the FCP Unit and deployed by FMFBs HR (Training) Department

as a mandatory component of Induction and

Refresher training courses for FMFB

employees. APRIL2017

APRIL2018

Complaints Infomercial Launched: An infomercial on FMFBs complaint

handling channels launched to inform clients about how to lodge a

complaint at FMFB. APRIL2018

JUNE2018

FCP SOPs Revision: FCP SOPs Revision: FMFBs Financial Consumer Protection Framework Standard Operating Procedures were updated to further describe the roles and responsibilities of the FCP Team and FCP Unit.

FCP Training Module Revision: FMFBsFinancial Consumer Protection Training Module was updated to include the revisions in FMFBs FCP SOPs and to further improve the training material for employees.MARCH

2019APRIL2019

NFLP Best Community Provider Award: FMFB was awarded the ‘Best Community Provider’ award at the 1st Annual Performance Review of National Financial Literacy Program (NFLP) of the State Bank of Pakistan in recognition of the effort and services of FMFB to provide �nancial literacy training to its clients.JULY

2018

Prohibited Conduct: A tool was developed and gap analysis was conducted to evaluate FMFBs compliance with SBP’s Prohibited Conduct guidelines. An action plan was formulated and implemented to close gaps identi�ed.

Q42018

Financial Literacy Training in 2018: Delivered SBP National Financial Literacy Program training to 23,518 participants in 2018 and provided Financial Literacy Training through Infomercials and posters in all FMFB Branches.

Q42018

CMS Launched: Complaint Management

System, an automated system to lodge and

track complaints, was launched by the

Complaints Management Unit at FMFB.This was a recommendation of the

Mystery Shopping Survey.

Financial Literacy Booklet Launch (Updated Edition):

FMFB developed Financial Literacy Booklets in Urdu

languageto introduce basic �nancial concepts to its

clients in 2014. This Booklet received a major update in

2018 to include updated information and new sections

and was dispatched to all FMFB Branches for

distribution to clients.

MARCH2018

2017 CAF Submitted: FMFBs pro�le for Conduct Assessment Framework, a diagnostic tool introduced by the SBP, submitted for the year to 31st Dec 2017.

Service Quality Unit Created: A dedicated unit was created to improve service quality, a recommendation the Mystery Shopping Survey.

Loan KFS and Standard Product Dialogues Launched:

In order to improve the �nancial literacy of clients and increase

transparency to aid better decision making by clients,

FMFB launched Loan Key Fact Statement (KFS). The KFS is a

fact sheet about loan products and the Standard Product

Dialogues detail important information about the loan

products and loan process to ensure comprehensive verbal

communication to clients.

Client Rights & Responsibilities Placard

Displayed: Two placardswere designed to

illustrate the various rights and responsibilities of a client with

the objective of spread awareness about Rights and

Responsibilities as a client of a Financial Institution.These are

displayed in the client meeting rooms of all FMFB Branches.

NOV2016

JAN2017

Client Rights & Responsibilities

Placard Displayed: A Financial Consumer

Protection Training Module was developed

by the FCP Unit and deployed by FMFBs HR (Training) Department

as a mandatory component of Induction and

Refresher training courses for FMFB

employees. APRIL2017

APRIL2018

Complaints Infomercial Launched: An infomercial on FMFBs complaint

handling channels launched to inform clients about how to lodge a

complaint at FMFB. APRIL2018

JUNE2018

FCP SOPs Revision: FCP SOPs Revision: FMFBs Financial Consumer Protection Framework Standard Operating Procedures were updated to further describe the roles and responsibilities of the FCP Team and FCP Unit.

FCP Training Module Revision: FMFBsFinancial Consumer Protection Training Module was updated to include the revisions in FMFBs FCP SOPs and to further improve the training material for employees.MARCH

2019APRIL2019

NFLP Best Community Provider Award: FMFB was awarded the ‘Best Community Provider’ award at the 1st Annual Performance Review of National Financial Literacy Program (NFLP) of the State Bank of Pakistan in recognition of the effort and services of FMFB to provide �nancial literacy training to its clients.JULY

2018

Prohibited Conduct: A tool was developed and gap analysis was conducted to evaluate FMFBs compliance with SBP’s Prohibited Conduct guidelines. An action plan was formulated and implemented to close gaps identi�ed.

Q42018

Financial Literacy Training in 2018: Delivered SBP National Financial Literacy Program training to 23,518 participants in 2018 and provided Financial Literacy Training through Infomercials and posters in all FMFB Branches.

Q42018

CMS Launched: Complaint Management

System, an automated system to lodge and

track complaints, was launched by the

Complaints Management Unit at FMFB.This was a recommendation of the

Mystery Shopping Survey.

Financial Literacy Booklet Launch (Updated Edition):

FMFB developed Financial Literacy Booklets in Urdu

languageto introduce basic �nancial concepts to its

clients in 2014. This Booklet received a major update in

2018 to include updated information and new sections

and was dispatched to all FMFB Branches for

distribution to clients.

53


FINACIAL LITERACY

The program revolves around knowledge-based workshops/sessions conducted to teach people money management skills and encourage use of the formal banking system. NFLP's scope includes an intended change in attitudes and behavior, especially in marginalized communities of both urban and rural areas in Pakistan. Its pictorial handbooks and activity-based workshops are geared to the learning capacity and situations of its target

audience, many of whom may be functionally illiterate.

In 2019 FMFB achieved its target before the close of �nancial year and also support other banks to achieve their targets. In the year 2019 bank received two awards from the SBP; First on the on its performance as “Best Partnership” in June and second on achieving the targets.

The National Financial Literacy Program (NFLP) has been sponsored by the Asian Development Bank and launched by State Bank of Pakistan. The purpose of this program is to impart knowledge & understanding of basic �nancial concepts, products and services to low-income Pakistanis to enable better economic decisions.

Training Conducted as Lead Bank

SAP Session TotalGeneralSession

SAP Session TotalGeneralSession

70,000

60,000

50,000

40,000

30,000

20,000

10,000

-

Training Conducted as Partner Bank35,000

30,000

25,000

20,000

15,000

10,000

5,000

-

No, of Account Oped

No, of Bene�ciaries/ Particpants

No. of Class Room Sessions

SERVICE QUALITY FMFB is committed to deliver excellence service culture to its customers through all banking channels. To embed such services and bring all the staff at one point the bank implemented service custodian of the day, monthly service quality meeting and telephone etiquettes & one pager product across pan Pakistan. In 2019 further enhancement taken with respect to services

BRANCH SERVICE SCORE CARD: Service score card is a tool to monitor the entire customer experience and maintain service visibility across bank. The tool provides a transparent service rating and monitoring method, built on relevant accountable and ownership levels. This card records actions and behaviors of all customers facing service staff and all operational staff services. The Branch Service Score card is based on six key Service indicators along with their respective weightages are mentioned below

54


KEY SERVICE INDICATORS WEIGHTAGESKSI - 1 Telephone Timeliness score

- Telephone timelines and courtesy protocols.Telephone timeliness indicator score * 10% BSS weightage

KSI - 2 Telephonic Product/Process Knowledge

Telephonic score * 20% BSS weightage

KSI - 3 Self-AssessmentKSI - 4 Voice of Customer (VoC) Deposit Base

Voice of Customer (VoC) satisfaction score * 20% BSS weightage

KSI - 5 Service Custodian of the Day KSI - 6 Monthly Service Meeting

Front of�ce Back Service meeting * 5% BSS weightageTOTAL

KSI - 7 Complaint Management5 points will be deducted from BSS on each valid complaint per instance

10%

20%

20%20%

20%

10%

100%

Negative Marking 5%

Below is the Indicator wise and quarter wise service score achieved during the year 2019.

KSI'S TREND- YEAR 2019 QUARTER WISE SERVICE SCORE CARD- 201984%

83%

82%

81%

80%

79%

78%

77%

79%

82%

83%

81%

Q-1 2019 Q-2 2019 Q-3 2019 Q-4 2019

86% 78%87%

99%82% 81%

120%100%

80%60%40%20%

0%

KSI 1 -Branch Call

Audit

KSI 2 -Product

KnowledgeAudit

KSI 3 - SelfAssessment

KSI 4 - SCD KSI 5 - VOCNTB

KSI 6 -MSQMNTB

• VOICE OF CUSTOMERS: In order to gather meaningful information regarding FMFB customers’ life style and their �nancial needs various activities are performed to identify and bridge gaps to manage the banks existing and new initiatives more ef�ciently.

1. VOC-New To Bank (NTB) Customers: This covers those customers who have become part of our books in the last 3 months to gauge customer on-boarding experience of the Bank.

2. VOC-Debit Card Activation: This covers those customers who have activated their debit card in last month, check their satisfaction level and give awareness on complaint channels.

• AWARENESS INITIATIVES: Service quality drives awareness enhancement program that focused increasing staff awareness level on product, Channels & customer handling techniques.

COMPLAINT MANAGEMENT SYSTEM:FMFB always consider its customers’ complains positive and constructive feedback which helps during improvements in products/services. The Bank has used the fair, transparent, accessible and ef�cient complaint handling process to satisfy customer's in an appropriate manner. In 2019 FMFB

has enhanced its scope by coordinating with the stakeholders for upcoming challenges, reviewed customer complaints and resolving them in the shortest possible time.

This year the bank received total 5,221 complaints from customers while average resolution time was 5 days. Following initiatives were taken to bring improvement in complaint process:

• Complaints Turnaround Time Revised • Complaints Accountability Mechanism• Card Activation through FMFB ATM• Customer Intimation on Card Issuance

COMPALINTS -YEARLY TREND

6000

4000

2000

0139

4494

5221

57


CODE OF BUSINESS CONDUCT

CODE OF ETHICS The programs and activities of FMFB are based on values shared by its personnel and by all other individuals associ-ated with FMFB.

It is FMFB’s policy to ensure that no individual associated with it in any capacity (staff, volunteers, governance or external service providers) is subjected to any practices that infringe upon human dignity and that FMFB activities are conducted in accordance with the highest standards of honesty, integrity and professionalism.

The purpose of this Code of Ethics is to de�ne the values which must underlie the activities of every individual associated with FMFB, irrespective of their status or position, and to establish a reporting and protection mech-anism designed to ensure the strict application of the described principles.

APPLICATION OF THE CODE This Code applies to all staff members of FMFB in their decisions and activities within the scope of employment, or when representing FMFB in any capacity. A copy of the Code is given to every employee for review. Each employee is required to sign a written con�rmation that they have reviewed, understood and agreed to adhere to the Code. In case of any additions / changes in the Code, the same is noti�ed by the manner / means prevalent at FMFB.

THE CODE OF ETHICS OF THE BANK COVERS / INCLUDES1. Maintaining Of�ce Decorum

2. Con�dentiality3. Professional Relationships4. Compliance with Laws and Regulations5. Compliance with Local Customs and Traditions6. Con�ict of Interest7. Insider Information8. Gifts and Entertainment9. Outside Pressure10. Money Laundering11. Customers, Vendors & Counter Parties12. Protecting the Banks Resources13. Accurate Record-Keeping and Reporting14. Media/Public Speaking15. Copyrights16. Regulators and Auditors17. Zero Tolerance to Workplace Violence18. Drug-Free Workplace19. Equal Employment Opportunity20. Nepotism21. Discrimination or Harassment22. Fraud, Forgery, Corruption and Bribery Practices23. Gainful Employment24. Other Acts of Misconduct25. Reporting Procedure26. Protection of Whistle Blowers27. Political Activities During Bank Service28. Responsibilities After Leaving the Bank29. Violation of Code

It is the policy of The First MicroFinanceBank Ltd (FMFB) to conduct the business of the Bank in full compliance with the laws, rules and regulations, norms, customs, culture and practices of Pakistan and to adhere to the highest ethical standards as embodied in the Code of Ethics and Business Conduct.To these ends, the employees are expected and directed to manage the business of FMFB with:

• The highest ethical standards of integrity and candor in conformity with the Code of Ethics and Business Conduct;• Due diligence and pro�ciency in all business activities; compliance of all legal and regulatory requirements; • A manner that no disfavor will re�ect on the Bank, both on and off the job;

This Code lays down the principles and sets the tone for

proper conduct and ethical behavior in conducting business at FMFB. The Board, the Chairperson and the President have ultimate responsibility for ensuring the legality and integrity of the Bank’s operations. Day-to-day responsibility lies with line management. However, each employee of the Bank, whatever her/his position is in the Bank, is personally responsible for ensuring that she/he acts fully in accordance with the Bank’s standards.

58


• The whistle blower is invited to share the concerns in writing by setting out the background and history of the concern, giving names, dates and places where possible, and the reason the whistle blower is particularly concerned about the situation. The earlier the whistle blower expresses the concern, the easier it is to take action.

Dedicated email address whistleblowing@ mfb.com.pk where the whistle blower can share his/her concern. The designated ethics of�cer is required to forward the complaint to the Whistle Blowing Unit. The whistle blower can also send the concern by post addressing to Head of HR/ Head of IAD/ Ethics Of�cer, 16th Floor, HBL Tower, Near China Chowk, Blue Area, Islamabad. In case the complaint is received by the designated ethics of�cer he/she is required to share the compliant to the Whistle Blowing Unit.

• On receipt of the whistle blow, the Whistle Blowing Unit will offer to interview, in con�dence, the person making the whistle blow (i.e. whistle blower) if possible. The purpose of the interview will be to obtain as much information as possible about the grounds of the belief of malpractice and to consult about further steps which could be taken. The notes will not identify the person making the whistle blow.

• The Whistle Blowing Unit will receive, review and forward the complaint to the concerned department for further resolution. Whistle Blowing Unit may invite feedback/comments from the concerned function to assess the complaint and see if further information is required; within 07 days of the receipt of the complaint. Once it is con�rmed Whistle Blowing Unit shall decide on the nature of the investigation of the allegations.

• The investigation may be internal/domestic investigation leading to legal proceedings or referral of the matter to the police or other appropriate public authority.

• In case of fraud and forgery related complaint Whistle Blowing Unit will forward the case to CFFU/IAD. Special investigation shall be assigned as per de�ned process.

• In case of consumer related complaint, it shall be forwarded to consumer complaint unit.

• In case where the matter is to be reported to police or any public authority same shall be referred to the legal department for further action.

• In case where the complaint pertains to an instance of sexual harassment, work place or ethics the complaint shall be dealt by the Head of Human Resource.

• Further Whistle Blowing Unit can also assign any other person that is quali�ed enough to lead an inquiry depending on nature of the complaint. Relevant functional head will be asked for consent for assigning staff, in case of non-availability CEO shall decide in light of the above guidelines. Authorized investigation of�cer shall have all the access to the bank’s record for conducting the enquiry.

• Quarterly reporting shall be provided to Chairperson of the Board and CEO. However, cases of critical nature can be reported as soon as possible.

• The investigation, and any report or recommendations in relation to the matter, will not normally identify the whistle blower except, where necessary, on a strictly con�dential basis unless; The whistle blower consents; There are grounds to believe that the discloser has acted maliciously; Compliance to a legal obligation; The information is already in the public domain; The information is already in the public domain; It is essential to do so in order to deal appropriately with the matter disclosed (for example, if the anonymity of the discloser is incompatible with a fair investigation of allegations against a named individual).

• Harassment or victimization of the whistle blower will not be tolerated. The following acts shall be considered as harassment, but not limited to: Termination of employment; Demotion; Suspension; Written/verbal warning; Decision not to promote; Withholding of appropriate salary adjustments; Imposition of involuntary transfer or reassignment; Signi�cant change in job responsibilities; Denial of awards, leave, bene�ts, or trainings for which the employee would normally be eligible.

WHISTLE BLOWING PROCEDURE

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HUMAN CAPITAL DEVELOPMENTS IN YEAR 2019Human Resources strategy supports, the FMFB business growth strategy, digitization and innovation to accomplish its mission of poverty alleviation and economic empowerment.

Human Resources key focus is to improve employee experience by nurturing an enabling culture through employee engagement and capability enhancement. To

Human Resources believes that an effective and �t for purpose talent is critical to the success of the FMFB and achieving its business & social goals.

2019 was a challenging year for talent acquisition as the recent head to deploy 1,202OTIF (on time in full) in line with monthly business growth and expansion plans. Mid-Year review of Head

ensure sustainability, during 2019 the HR department was restructured with an objective to fast-track HR service

delivery, improved internal controls and process optimization.

the on-boarding, completion of probationary progress reports, payroll processing, clearance and �nal dues payments and antecedent veri�cations.

Human Resources focused on bringing improvement and

clarity in basic structure at organizational, departmental and individual levels. Organograms were reviewed keeping in view the business needs and employee progression.

Count was conducted with the objective to put more resources in front line while putting certain back of�ce positions on hold. To further strengthen talent pipeline, in addition to external hiring the internal job posting (IJP) framework was also used to provide career growth opportunities.

HR continued to focus on campus recruitment drives and regional sourcing through online portals. Universities and institutes which have a wide reach in local areas were targeted to develop a strong foothold in localities and

enhancing grass root reach to build a sustainable talent pipeline. It helped us to develop long term regional recruitment relationships to cater for local staff requirements.

With a view to reduce lead time, we introduced an on-line testing mechanism in recruitment process. Employee screening process was further strengthened by introducing police veri�cation for tellers and ECIB and sanction screening for all new hires

TALENT DEVELOPMENT & EMPLOYER BRAND

RIGHT ORGANIZATIONAL DESIGN Human Resourcesstructure was revisited to enhance the employee services area through establishing Human Resources operation & service delivery unit.

The key focus area was to improve Human Resources service delivery through process optimization and digitization. By virtue of this change, the TATs for key HR processes were improved, i.e., for

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the on-boarding, completion of probationary progress reports, payroll processing, clearance and �nal dues payments and antecedent veri�cations.

Human Resources focused on bringing improvement and

clarity in basic structure at organizational, departmental and individual levels. Organograms were reviewed keeping in view the business needs and employee progression.

FMFB is cognizant of the fact that employee engagement is critical to achieving employee satisfaction and sustaining a high performing culture.

To understandand and identify areas for improvement in employee experience, an Employee Engagement Survey was conducted. The results were

very encouraging; based on the survey results for each department, action planning exercise was carried out with each Head of the department and these plans are being monitored through an online Action Plan Tracking Tool. These plans aim to provide a better work environment where employees feel motivated and positively engaged.

Some of the key employee engagement initiatives are mentioned below:-

Year 2019 was started on a high note with New Year’s Celebrations with distribution of deserts & cards to the employees.To create healthy and positive awareness among employees, engaging them to take action and make a difference through adoption of environmental solutions, Green Of�ce Drive was arranged in April, 2019.Furthermore, Ramadan First was launched in May, 2019 to promote empathy and compassion, in which Acts of Kindness Planners were distributed among employees. Productivity boosters were also shared to maximize ef�ciency during Ramadan.

Birthday Celebration events were organized on quarterly basis for head of�cestaff andwere given gifts. Birthday announcements were made on FMFB’s of�cial web radio channel. For Field staff, FMFB Birthday Sentiments Project

(Pan Bank) was launched in May, 2019 to connect with our �eld employees at a personal level and to create a better, more collaborative organizational culture.

With a view to improve inter-departmental relationships and promoteharmony,Team retreats HR Connectinitiative was kicked off in May, 2019 for every department. Moreover, a dedicated Away Day for the Senior Management and their direct reports was also conductedwith an objective to build synergy within the departments, encourage more effective communication, and promote teamwork.

To acknowledge and recognize the efforts and contributions of employees throughout the year, the Reward and Recognition Framework was up scaled with multiple programs.FMFB Annual Excellence Awards in which employees were recognized for their exemplary performance.Long Service Awardsto celebrate 15 & 20 years of employee association with the bank, and awards for retired employees were also formulized and made part of the policy. Branch, (PB) and Sub Of�ce (SO) of the Quarter process was made robust and ef�cient covering 300 plus employees.

CULTURE AND EMPLOYEE ENGAGEMENT

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Despite of budgetary constraints and cost optimization challenges, Human Resources managed to support the organizational growth and expansion by imparting various functional and behavioral trainings to enhance employee capability, throughout the year.

As a result approximately 70%

increase in training hours was achieved. Some of the key capability enhancement interventions focusing on Teambuilding, Leadership Development, Creating Compliance culture and awareness on Counter Financial Terrorism and Money Laundering, Usage of Digital Platform, Business Continuity Management & New Hire Induction Programs were planned and conducted in year 2019.

Below are key highlights of the above mentioned interventions:

The year 2019 was started with focused experiential teambuilding session at the Annual Conference to boost morale of the employees in achieving business results as one team.

In continuation of creating a strong culture of compliance,Phase 2 of Compliance certi�cation program was launched. A dedicated team of 40 certi�ed master trainers were trained in-house to educate on the sensitivity of regulations, compliance, and ordinance in the day to day banking operations.AML / CFT Awareness was another focus area for 2019, sessions were conducted for all staff nationwide through learning days and class room sessions following formal assessment.Business Continuity Management sessions were also initiated in 2019

nationwide which will be continued in 2020.

Content of Induction and Refresher training for business and banking operations was renewed and improved by including LOS and AML / CFT and selling skills Moduleto meet the needs of new hires and existing employee.

Building leadership across all management levels of employees put into focus and a suite of training programs for senior management, Unit Head, Regional Head, Area level manager were developed to be deployed in 2019. For branch managers a �ve day management development program (MDP) was designed and delivered in collaboration with NIBAF to provide greater opportunities of experiential learning. A 3 day Leadership Development through Experiential Learning Workshop for Senior Management Team (SMT)was conducted by an International Trainer, focusing on Transactional Analysis and Leadership techniques. A follow up session for SMT was organized later in the year to re�ect on the learnings and developing strategy for 2020.

To enable the �eld workforce with the usage of digital platform e.g. Loan Originating System, Branchless bankingtraining was provided.

In area of compensation and bene�ts, our total rewards strategy revolves around human capital and designed to be transparent, agile and competitive with an aim to reward high performance.

Hence, a holistic view of all factors impacting staff, i.e., remuneration, bene�ts, learning & development, career growth, work environment and values &

CAPABILITY MANAGEMENT

COMPENSATION AND BENEFITS ALIGNMENT

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In area of compensation and bene�ts, our total rewards strategy revolves around human capital and designed to be transparent, agile and competitive with an aim to reward high performance.

Hence, a holistic view of all factors impacting staff, i.e., remuneration, bene�ts, learning & development, career growth, work environment and values &

culture to achieve strategic advantage is adapted and decisions are based on conducting regular salary and employee engagement surveys.As a result, corrective measures were taken during 2019 for salary alignment of critical job roles. Pay scales and salary benchmarks were

re-calibrated and revised in line with salary survey results.To inculcate the pay for performance culture, variable pay plans and incentives are used to drive the right culture, productivity and achievement of sustainable business growth.

FMFB also ensures that gender equality is permeated across all categories and grades. To support this drive FMFB celebrated International Women’s Day 2019 on March 08, 2019 followed by gender sensitization training themed as “Balance for Better” for nurturing a diverse and inclusive environment. Furthermore, FMFB collaborated with the Pink

Ribbon Foundation for an exclusive Breast Cancer Awareness Session in October, 2019.

We aim to continue to develop and sustain a gender friendly work environment by promoting and expecting the right behaviors and reinforcing anti-harassment policy.

DIVERSITY & INCLUSION

The Bank has focused on improving Diversity and Inclusion Index; FMFB gender diversity is at 15.36% work. FMFB continues to aim for a high gender mix at all levels.

Enhancing the gender diversity & inclusion will continue to remain a priority area in terms of hiring and career progression while ensuring meritocratic decisions.

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technology, innovation and continuous learning. FMFB-IT – a place where staff. “trust the people they work for, have pride in what they do, and enjoy the people they work with”.

The availability of cutting edge and robust technology will be ensured to provide reliable services to the clients in a highly secured environment by most ef�cient and cost-effective manner. The Bank will continue to invest in its people, innovative solutions, technology platforms and assuring adequate controls. The Banks aim to digitize its processes while focusing on an agile IT environment that foster business innovation, ef�ciency and quick decision making; there will be continuous and controlled improvements in IT

Infrastructure/Services with a focus on Information Security to ensure client sensitive information protected in a highly secured environment in most ef�cient and cost-effective manner.

Bank’s IT Strategy revolves around four strategic themes which are Effective Communication, Strategic Focus, Excellent Service Delivery and Engaged Organization.Technology function at FMFB is three-fold – The operations, development and governance. In providing a robust and strong banking infrastructure, FMFB’s IT function has upgraded, supported and developed in the following areas:

FMFB IT is a Business Solution Partner that is user-centric, business oriented, innovation focused, and standard compliant. FMFB-IT strives to provide ef�cient, effective and modern IT infrastructure and application services to support, optimize and transform Bank’s business process based on best practices for developing Pakistan. Our strengths and competencies vare

INFORMATION TECHNOLOGY(INITIATIVES & INNOVATIONS) – 2019

• BRANCHLESS BANKING AND LOAN ORIGINATION SYSTEM The hardware for the Production and DR sites for the Branchless Banking and Loan OriginationSystem was commissioned.

The environments were con�gured, deployed and synched (PR to DR) to ensure the timely launch of their commercial operations.

Over 450 tablets were con�gured as per the security and application requirements.

• SECURITY STRENGTHENING The security was strengthened by the placement of Web Application Firewall (WAF) which �lters, monitors, and blocks HTTP traf�c to and from a web application. By doing this, it prevents attacks stemming from web application security �aws, such as SQL injection, cross-site scripting (XSS), �le inclusion and security miscon�gurations.

DDoS mitigation Appliance was deployed for resisting or mitigating the impact of distributed denial-of-service (DDoS) attacks on networks attached to the Internet by protecting the target and relay networks. Bank’s End Point Security was enhanced to the next level with the features

like next generation end point security, disk encryption, �le/folder level encryption, web control and application protection.

IP Intelligence module was deployed for provision of the information for the bad reputed sites/domains; in order to protect the bank’s critical assets.

Several activities related to CSI Controls, patch management, password complexity, privilege identity management, upgrades based on the best practice and standards were carried out on the application/database Infrastructure.

• MANAGED SERVICES In order to better serve the business operations with better turnaround time, IT has outsourced the Maintenance of Hardware and Software (Noncore, User end) Support Services.

In this regard, Phase I with over 100 locations has been commenced while other locations will be added in a phase wise manner.

In this regard, human resources were reduced with the addition of better service delivery, increased foot print and back to back coverage of hardware provisions.

OPERATIONS

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DEVELOPMENT

• CORE BANKING SYSTEM (CBS) The CBS was enhanced with various features and functionalities to keep it abreast with the evolving business and stringent regulatory requirements.

This includes the important features like Dormancy days at CASA Level, Validator Printers, Pensioner payment validity, On-Us Transactions, ADC Transaction Charges (exemption of charges on Staff account), Bio-Verisys – Phase II, Regulatory (State Bank of Pakistan) – Circular 9 Compliance, Transaction Monitoring System – Live Screening (Real time integration with CBS), CIF Amendment via Centralized role, Work Flow Transaction and Tractor Insurance.

• INTERNAL DIGITIZATION / PROCESS AUTOMATION As part of bank’s internal digitization journey, several processes of different departments as well as IT were automated and made Live using the latest application development tools and techniques.

This includes the Batch Upload (Finance), SLA Alerts (Legal), PLRA – Integration (Product Management / Business), Card Ordering System (DFI/Business), Data Enrichment (Banking Operations), Rejected Portfolio (Credit/Business), Centralized Identity Management (IT) and IT Assets Manager (IT).

There are several processes which are in the development phase by IT; which will be delivered within this year.

• DASHBOARDS - BUSINESS INTELLIGENCE/ANALYTICS Dashboards in graphical formats were developed by IT to visually track, analyse and display key performance indicators (KPI), metrics and key data points to monitor the health of a business, department or a speci�c process.

These dashboards were provided to departments like Business (Credit and Liability Operations), Banking Operations, Finance, Risk Management and Compliance; based on their own requirements.

• PROCEDURE MANUAL AND GOVERNANCE FRAMEWORK Procedure manual and Governance framework for IT was updated.

Over 100+ IT Processes and Procedures were documented in order to strengthen the overall systems.

• IT SERVICE CATALOGUE The IT Service catalogue covering 9 domains and 150+ services was created to ensure the 360 degree view, increase productivity, better decision making, and better planning.

• SECURITY ASSESSMENT Several Internal security assessment and reviews were conducted and required actions were taken accordingly. Risk Management by Identifying security vulnerabilities and ensure mitigation controls. Validation of critical security controls.

• ASSET MANAGEMENT Better visibility into existing inventory, Automated agents sends system inventory to centralized repository for monitoring and evaluation.

• IMPLEMENTATION OF PIM – AUTOMATION, TRANSPARENCY & 360 DEGREE VIEW Improve incident response by coupling automatic

response and mitigation with human control. Monitor, audit, and completely control privileges. Prevent attacks from insiders,privileged account escalation, and third-party access issues.Easily prove regulatory compliance.

• FMFB SSA - SINGLE SOURCE FOR ALL YOUR APPLICATIONS Web portal added to users’ internet explorer home page, which provides end users; Easy access to required applications,Don’t require to remember URL addresses, Application are available ona single click. Seamless access to applications whether on PR or DR.

• CENTRALIZED MANAGEMENT AND BETTER OVERSIGHT In order to have better oversight and control over the access requisition, access rights and IT assets; applications based on work �ow management like Centralized identity management and IT Assets Manager were launched bank wide.

The initiatives and innovations in 2019; were managed within the given resources which is a big success. These have also increased the transparency of information and improved the governance mechanism.

GOVERNANCE/SECURITY

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mitigation were deliberated at Board level and its nominated committees on periodic basis. Bank strongly resolved that we will spare no resource and clearly set forth the way forward to combat ML/TF.

The compliance strategy was designed for �ve years and backed by an annual compliance program with all the necessary requirements to be ful�lled by the bank to remain compliant. Senior Management of Bank ensured that adequate resources, systems, procedures and monitoring are in place to cater ever-rising risk of money laundering and terrorist �nancing.

During 2019, Compliance Department established a dedicated CFT (Combatting Financing of Terrorism) desk to counter ML-TF risks for all major sectors of the business operations. CFT desk conducted assessment of ML-TF risk posed to the Bank with the level of TF risk posed from Persons, Products, Delivery Channels and riskier jurisdictions. The CFT desk effectively implemented the controls in response to enterprise level ML/TF risk Assessment’s outcome. It also maintains a close monitoring of national and international terrorist incidents and effective coordination with stakeholders.

Moreover, a revised KYC/AML/CFT policy has also been issued in 2019, covering CFT and Proliferation �nancing risks. An awareness booklet for DNFBPs (Designated Non-Financial Businesses and Professions) has been designed to build their capacity on effective measures regarding CFT and AML.

On top-up, in 2019, bank conducted outreach and awareness sessions on Money Laundering, Terrorist Financing, National Risk Assessment Report and FATAF recommendations which coveredentire bank staff with more than 35,000 credit hourswere delivered including feedback and mandatory assessment.

To mitigate �nancial crime (Money Laundering& Terrorist �nancing risk),unit wasfully equipped with RegTech including a live sanction screening system, e-KYC module for automated risk pro�ling of customers and transaction monitoring system(TMS).To meet the regulatory reporting of CTRs and STRs, it was done through Go-AML reporting

module of FMU (Financial Monitoring Unit).

Inculcating compliance culture is one of the key objectives set by BoD and to achieve this goal, “Compliance Certi�cation Program” (CCP) was launched in 2018 which continued during 2019. This program include all the staff of the (3000+) with more than 30,000 credit hours were delivered. CCP enhanced awareness among participants regarding their compliance responsibilities and met objectiveto educate,train and reinforce them on laws, regulations and internal policies and procedures. To mitigate digital frauds, protect customer interest, identify and investigate customer transactions a dedicated 24/7 fraud monitoring unit was established under compliance in 2019 and it was equipped withan automated transaction monitoring system.This also enhanceddeterrence & awarenessamong the staff & customers against digital frauds.

The department also carried out compliance risk based visits of more than 170 Branches/PBs (Permanent Booth) with the key objective to assess compliance with the policies/ procedures/ laws/ regulations, internal controls/ environment, service quality, fair treatment of customer, �nancial literacy, KYC/AML/CFT etc. All exceptions (if any) were followed up with the respective business unit for corrective actions/ closure through an automated system. Furthermore, training of front line of defense was performed & also assessed during the branch visits by Compliance staff. To abide and follow the international reporting standards of Foreign accounts tax compliance Act (FATCA) and Common Reporting Standard (CRS). All new and existing customers were scrutinized and reviewed under FATCA and CRS regulations. Databases of FATCA and CRS customers are maintained, updated and reported to the concerned authorities. During 2019, the Bank has reviewed and timely reported FATCA and CRS accounts.

After full-�edged implementation of e-compliance system in 2019, the department has greatly contributed towards paperless environment through maintaining online repository of regulatory circulars, guidelines, frameworks,

online regulatory reporting alerts and managing the quarterly CSAR’s (Compliance Self-Assurance Reports) based on automated compliance follow-up with various functions. Regulatory reporting is one of the most important and prime task performed by the department. State Bank of Pakistan

(SBP), Federal Board of Revenue (FBR), Security and Exchange Commission of Pakistan (SECP), National Accountability Bureau (NAB), Law Enforcement Agencies (LEAs)along with other regulators and authorities requests information against proscribed persons and entities. During 2019, all such communications have been timely coordinated.

FMFB continued its focus on Money Laundering (ML) and Terrorist Financing (TF), implementations of record is given under NRA (National Risk Assessment Report) & FATF (Financial Action Task Force). The BoD understands their responsibilities towards combating menace of ML/TF risk. Matters related to ML/TF risk identi�cation, measurement &

COMPLIANCE RISK MANAGEMENT

72


mitigation were deliberated at Board level and its nominated committees on periodic basis. Bank strongly resolved that we will spare no resource and clearly set forth the way forward to combat ML/TF.

The compliance strategy was designed for �ve years and backed by an annual compliance program with all the necessary requirements to be ful�lled by the bank to remain compliant. Senior Management of Bank ensured that adequate resources, systems, procedures and monitoring are in place to cater ever-rising risk of money laundering and terrorist �nancing.

During 2019, Compliance Department established a dedicated CFT (Combatting Financing of Terrorism) desk to counter ML-TF risks for all major sectors of the business operations. CFT desk conducted assessment of ML-TF risk posed to the Bank with the level of TF risk posed from Persons, Products, Delivery Channels and riskier jurisdictions. The CFT desk effectively implemented the controls in response to enterprise level ML/TF risk Assessment’s outcome. It also maintains a close monitoring of national and international terrorist incidents and effective coordination with stakeholders.

Moreover, a revised KYC/AML/CFT policy has also been issued in 2019, covering CFT and Proliferation �nancing risks. An awareness booklet for DNFBPs (Designated Non-Financial Businesses and Professions) has been designed to build their capacity on effective measures regarding CFT and AML.

On top-up, in 2019, bank conducted outreach and awareness sessions on Money Laundering, Terrorist Financing, National Risk Assessment Report and FATAF recommendations which coveredentire bank staff with more than 35,000 credit hourswere delivered including feedback and mandatory assessment.

To mitigate �nancial crime (Money Laundering& Terrorist �nancing risk),unit wasfully equipped with RegTech including a live sanction screening system, e-KYC module for automated risk pro�ling of customers and transaction monitoring system(TMS).To meet the regulatory reporting of CTRs and STRs, it was done through Go-AML reporting

module of FMU (Financial Monitoring Unit).

Inculcating compliance culture is one of the key objectives set by BoD and to achieve this goal, “Compliance Certi�cation Program” (CCP) was launched in 2018 which continued during 2019. This program include all the staff of the (3000+) with more than 30,000 credit hours were delivered. CCP enhanced awareness among participants regarding their compliance responsibilities and met objectiveto educate,train and reinforce them on laws, regulations and internal policies and procedures. To mitigate digital frauds, protect customer interest, identify and investigate customer transactions a dedicated 24/7 fraud monitoring unit was established under compliance in 2019 and it was equipped withan automated transaction monitoring system.This also enhanceddeterrence & awarenessamong the staff & customers against digital frauds.

The department also carried out compliance risk based visits of more than 170 Branches/PBs (Permanent Booth) with the key objective to assess compliance with the policies/ procedures/ laws/ regulations, internal controls/ environment, service quality, fair treatment of customer, �nancial literacy, KYC/AML/CFT etc. All exceptions (if any) were followed up with the respective business unit for corrective actions/ closure through an automated system. Furthermore, training of front line of defense was performed & also assessed during the branch visits by Compliance staff. To abide and follow the international reporting standards of Foreign accounts tax compliance Act (FATCA) and Common Reporting Standard (CRS). All new and existing customers were scrutinized and reviewed under FATCA and CRS regulations. Databases of FATCA and CRS customers are maintained, updated and reported to the concerned authorities. During 2019, the Bank has reviewed and timely reported FATCA and CRS accounts.

After full-�edged implementation of e-compliance system in 2019, the department has greatly contributed towards paperless environment through maintaining online repository of regulatory circulars, guidelines, frameworks,

online regulatory reporting alerts and managing the quarterly CSAR’s (Compliance Self-Assurance Reports) based on automated compliance follow-up with various functions. Regulatory reporting is one of the most important and prime task performed by the department. State Bank of Pakistan

(SBP), Federal Board of Revenue (FBR), Security and Exchange Commission of Pakistan (SECP), National Accountability Bureau (NAB), Law Enforcement Agencies (LEAs)along with other regulators and authorities requests information against proscribed persons and entities. During 2019, all such communications have been timely coordinated.

RISK MANAGEMENT FRAMEWORK

Rigorous and consistent risk management is embedded across the Bank through the bank’s Risk Management Framework, comprising ofstructures of governance, risk management processes and risk appetite framework.

Risk management framework at FMFB includes risk policies and procedures, risk oversight committees, roles and responsibilities. Line management in the business is accountable for risk management which, together with the risk function and internal audit, forms the bank’s ‘three lines of defense’. The processes bank use to identify, measure, manage, monitor and report risks, including the use of risk models, stress testing, are designed to enable dynamic and effective day-to-day risk management. Having identi�ed and measured the risks of business, depending on risk appetite, the bank either accept these risks or take action to reduce, transfer or mitigate them.

Credit RiskAs part of risk and cross-risk analysis, sensitivities of the key portfolio risks are reviewed through a bottom-up risk assessment and through a top-down macro-economic and political scenario analysis. This two-pronged approach allows to capture risks that have an impact across risk inventories and geographical locations or those that are relevant only to speci�c portfolios.

Non-performing loans of the sector are rising due to business losses incurred by the borrowers resulting from worsening of the economic conditions. Therefore, RMD has strengthened the early warning indicators framework. Based on internal and external indicator results, RMD has conducted a root cause analysis and amended its product parameters, modi�ed collateral requirements and tightened risk acceptance criteria.

The assessment of the potential impacts of identi�ed riskshas been made through integration into stress tests which assess our ability to absorb the impact of these events when they occur. The results of these tests showed that we currently have adequate capital and liquidity reserves to absorb the impact of these risks if they were to be materialized.

Though conventional methods of managing credit risk are important but with manifold increase in customer base, these are not enough.Hence, Data Analytics Unit, recently established under the Umbrella of RMD, has been made functional. Data analytics is one of the disruptive ways, through which banks can effectively monitor credit risks and minimize exposure to

risk. The bank is working on developing algorithms and models for default probability; in coordination with �nance, is also working for implementation of IFRS 9.

Operational Risk ManagementFraud risk management principles are being reinforced, and refresher courses were conducted in 2019 for creating fraud deterrence amongst staff. Campaign to create awareness about fraud schemes amongst customers was also run during 2019. Additionally, movement towards automated controls leveraged on digital initiatives was a key component of fraud prevention strategy for FY19.

Today �nancial markets and banking has changed dramatically with lot of reliance on technologies such as ATM, e-banking, tele-banking etc. Micro-�nance industry is no exception. MFBs have seen their own share of technological advancement. From use of tablet in �eld to advance software, introduction of swipe cards, biometric and changes in the IT usage. Strong internal processes, systems, good human resource and readiness against external events are necessary for managing the operational risk; hence, Risk Registers were developed to identify and treat risks.

RMD has worked in close coordination with process owner to keep their Business Continuity Plan updated. Periodic DR drills have been conducted to con�rm recovery and availability of systems at Disaster Recovery (DR) Sites in a manner that all systems are tested at-least once in a year.

Information SecurityInformation Security framework was strengthened,during 2019,taking the following initiatives:a) Revision in departmental structure in line with industry best practices.b) IS processes have been revised to incorporate best market practices.c) Constant awareness campaign for employees through trainings and emailsd) Updation of IBM Qradar, which has enabled FMFB to monitor more information of assets e) DDOS prevention tool was acquired in 2018, it was delivered and deployed in 2019. Also, an additional IP intelligence security module was acquired and deployed in 2019.

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environment on an ongoing basis. The management of the Bank has formulated, implemented, and maintained a system of internal controls, the goal of which is to achieve effectiveness and ef�ciency of operations while adhering to laws and regulations, resulting in reliability of �nancial reporting. It also requires continuous improvement to align it with the changing environment and needs of the business.

The Bank’s internal control structure comprises of different levels of monitoring activities. The Bank follows the “three lines of defence” model with the �rst line comprising of front-of�ce and customer facing and enabling functions, the second line being Compliance and Risk Management Functions and the third line of defence being Internal Audit.

With phenomenal growth in deposit and loan portfolio, management undertook various measures to enhance the Bank’s internal control environment. Manual loan processing was substituted with the state of the art automated Loan Origination System (LOS) which substantially reduced chances of human error and manual

override of controls. Account opening related risks were further strengthened by a centralized mechanism of account opening. The Bank deployed a comprehensive Transaction Monitoring System (TMS) to monitor transactions on a real time basis and �agging suspicious transactions for further investigation.

The internal audit transformation program is now complete and internal audit is effectively providing an independent and objective assurance and advisory on Governance, Risk Management and Controls of the Bank.

Progress on all the aforementioned initiatives has been satisfactory as re�ected by sturdy growth and excellent quality portfolio of the Bank. Based upon the results achieved from reviews, the management considers that the Bank’s existing system of internal controls, including Internal Controls over Financial Reporting, is adequate and has been effectively implemented and monitored; while continue to evaluate these controls for further improvements. The Board of Directors have duly endorsed management’s evaluation of internal controls.

An internal control system is a set of procedures and activities designed to identify and mitigate the risk in processes and operations in order to support the overall business objectives of the Bank. It is the responsibility of the Bank’s management to establish an internal control system to maintain an adequate and effective internal control

STATEMENT ON INTERNAL CONTROL

The Bank’s keeps its records as per the legal and regulatory requirements to ensure compliance and sustained business operations. The Bank record is archived in a well preserved manner as follows: • Stored data at a secure location with protection against physical deterioration, �re, natural disaster etc. • The Bank has disaster recovery site to provide immediate backup of all primary data, in line with the business continuity practices. • Record management ensures that valuable records evidencing an organization’s activities that have legal, �nancial, administrative or historical value are protected and accessible.

RECORD MANAGEMENT

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critical information, premises, staff, services to our custom-ers – and planning how to maintain these, if an incident occurs.

To ensure effective business continuity management, FMFB is committed to ensure the continuity of critical business operations and functions in order to protect the Bank, mitigate risk, and sustain both operational Continuity and customer con�dence. The development, implementation, testing and maintenance of an effective Business Continui-ty and Disaster Recovery Management are required to sustain these objectives.

To further our commitment in the event of a signi�cant business disruption, as well as meet all regulatory require-ments, FMFB infrastructure includes a Business Continuity Management (BCM) staff under the Operational Risk Unit having ownership of entire BCM.

FMFB has developed function speci�c Business Continuity Plans and introdued multiple sites as an Alternate Process-

ing Sites (APS); the purpose of this document is to set the prospect for Business Continuity and to provide the overall framework for respective servers, databases, applications including �nalization of Recovery Time Objective (RTOs) and Recovery Point Objective (RPOs) of applications through Business Impact Analysis (BIA). Record manage-ment through data backup, critical data shifting to APS would be part of plan.

New function speci�c BCPs not only empower functions to work independently but also provides the better coordina-tion. BCM also covers multiple scenarios/ locations-based actions that were also tested throughout the year.

BCM comprehensively covers Disaster Recovery (DR) of all critical systems. Disaster Recovery site is located in other city than primary site. To implement of Business Continuity Management in letter and spirit, Bank wide training/aware-ness sessions and testing drills is used.

BUSINESS CONTINUITY AND DISASTER RECOVERY

The First Micro�nanceBank Ltd is determined to protect the global environment that is extremely vital for the survival of humankind and natural life on earth. It also seeks the balance among environmental conservation, social prosperity, and sustainable development.

In this regard, FMFB has formulated a Environmental Risk Management Framework which is based on the following:• FMFB recognises the importance of protecting the environment. Hence, it will work to promote awareness about protecting the environment through various activities/programs.

• FMFB will not provide �nance to any business which causes extreme harm to the environment and will

periodically update list of such business.

In 2019, FMFB implemented the following initiatives to demonstrate its commitment to the environment: • 25,880 participants were trained on Financial Literacy Booklets which included information to create client awareness on protecting the environment. • Orientation and refresher training's at the bank includes information on environmental awareness.• FMFB celebrated Earth day on 26 April to demonstrate the banks support for environmental protection. • In order to facilitate green solar energy solutions, FMFB developed and rolled out a product to �nance renewable energy solutions.

SOCIAL AND ENVIRONMENTAL RESPONSIBILITYPOLICY

Business Continuity Manage-ment sets out to enhance the strategic and tactical capability of the organization to plan for and respond to incidents and business disruptions in order to continue business operations at an acceptable pre-de�ned level. Business Continuity Manage-ment (BCM) is about identifying those parts of our bank that we cannot afford to lose – such as

79


PRODUCTS & SERVICESFMFB offers a wide array of �nancial solutions catering to diverse banking needs of its customers, through a network of 186 locations in major cities and towns.

LIABILITY PRODUCTS

FIRST AMDANI TERM DEPOSIT ACCOUNTFirst Amdani Term Deposit Account offers medium to long term savings or regular income needs to individuals, pensioners, businessmen and companies at �exible pro�t intervals.

FIRST DAILY PROFIT ACCOUNTFirst Daily Pro�t Account is a savings account that offers a day-end pro�t to individuals, businesses and corporations on their savings. It also provides instant access to a range of banking services, through the convenience of FMFB’s network of branches and digital channels.

FIRST PREMIUM SAVINGS ACCOUNTFirst Premium Savings Account is a tailor-made savings account that caters the need of individuals, businesses and corporations. The additional service in terms of Life Insurance PKR 1 Million coverage can be availed by keeping the balance of PKR 1 Million or above on monthly basis. It also provides instant access to a range of free banking services, through the conveniences of FMFB’s network of branches and digital channels.

FIRST SAVING ACCOUNTFirst Saving Account is ideal for small-savers, salaried individuals and general banking customers. It provides an opportunity to earn attractive market-based returns on savings with no minimum balance requirement. It also provides instant access to a range of free banking services, through the conveniences of FMFB’s network of branches and digital channels.

FIRST CURRENT ACCOUNT & FIRST CURRENT PLUS ACCOUNTFMFB offers a checking account for meeting customer’s daily transactional needs. It provides both individuals and businessmen instant access to a range of banking services, through the convenience of FMFB’s network of branches and digital channels.

ASAAN ACCOUNTFMFB offers a safe and easy to operate transactional deposit account to its customers. The account can be opened with minimal documentation and minimum amount of PKR 100.

UMEED BUNYADI BACHAT ACCOUNTUmeed Bunyadi Bachat Account (UBBA) is a fun new savings account that encourages young savers (up to 18 years) to learn to save as well as to manage their money. UBBA offers unique rewards to both children and parents.

80


ASSET PRODUCTSROSHANZAR PLUSRoshanzar Plus product facilitates the business owner’s agriculture and livestock farmers to expand their business to the next level by utilizing the working capital and asset �nancing up to PKR 1 Million. Product caters the client large needs by offering commercial vehicle �nance, machinery, structure and non-structure improvement in business premises and animal purchase. Along with these bene�ts client also avail the essential banking services and 24/7 digital banking channels.

ROSHANZARRoshanzar product serves the increased credit needs of clients, who have transitioned from income generating activities to microenterprises. Roshanzar provides larger loan sizes up to PKR 500,000 on individual basis for agriculture, livestock or commercial (trading, manufacturing and services) enterprises.

FIRST KAROBAR SARMAYAFirst Karobar Sarmaya is a loan product up to PKR 150,000 for individuals undertaking income generating/business activities for a variety of purposes. It targets home-based entrepreneurs, especially women, as well as small shops in market areas, undertaking manufacturing, trading or service activities.

FIRST KISSAN SARMAYAFirst Kissan Sarmaya provides short term �nancial facilities up to PKR 150,000 to small subsistence-level farmers, cultivating crops and vegetables on their own landholdings or under leased or sharing systems. The product focuses on providing �nancial facility to match cash �ows patterns of the farmer. Financing is available for purchase of agricultural inputs and small farming implements/machinery.

FIRST MAVESHI SARMAYALivestock is an important asset and source of income in the rural areas of Pakistan. First Maveshi Sarmaya is a short to medium term loan up to PKR 150,000 offered to livestock farmers, especially women, for productivity enhancement of existing dairy animals, and animal purchase for rearing and fattening as well as for dairy businesses.

FIRST ROSHAN MUSTAQBIL SARMAYAThe First Roshan Mustaqbil Sarmaya is a short to medium term loan up to PKR 150,0000 offered to individuals and group for all types of economic activities or initiatives, small housing improvements and education payment.

FIRST LOW SALARY EMPLOYEE LOANThe Low Salary Employee Loan is a personal loan product, which is available for low salaried employees for a variety of purposes. Individual loan is provided to permanent and contractual employees of an organization.

KAROBARSARMAYA

Mustaqbil Sarmaya

ROSHAN

81


STUDENT FINANCEStudent Finance is a specialized loan product developed to meet the expenses of tertiary (Bachelors and Masters Degree) and technical education. Financial facilities are available to meet tuition and other educational institutional expenses on semester or academic year basis. Loans can be repaid over short term by the parent of the student, or over medium term by both parent and student.

PRIVATE INSTITUTION FINANCEThis product facilitates educational institutions to develop capacities, academic as well as logistics, for imparting quality education, provides �nancial support to educational institutes, and provides �nancial solutions to cater to varying needs of the educational institutions. A package of services is offered including �nancial facilities up to PKR 1,000,000.

FIRST HOME LOANFirst Home Loan is a loan product for individuals looking to improve their living conditions. Under the product applicant can �nance home improvements; e.g. reinforcement of house structure, construction of a room, getting a paint job, plumbing and sanitation improvement, electrical system or appliances installation.

MICRO PENSIONER LOANThe Micro Pensioner Loan is a personal loan product, which is available for pensioners of Government organizations and semi-government institutions for a variety of purposes. Whether it is for any income generating activity, education, or minor housing improvement, Micro Pensioner Loan provides �nancial facilities easily and quickly,against future pension payment.

FIRST SOLAR POWERFIRST Solar Power is a �nancial product designed to support access to renewable and affordable alternate energy products. This product seeks to enable clients, not only in off-grid area, but also in areas with unreliable electrical supply, with a range of products from various technology partners. The products ranges from low cost solar product bundles to solar home solutions, up to a maximum loan amount of PKR 150,000

CREDIT LIFE INSURANCECredit-linked life insurance product is offered to all loan customers of the FMFB. Under this product, total outstanding liability of a customer is paid by the insurance company to the FMFB, in case of the natural/accidental death or permanent disability of the client.

FIRST SEHAT TAHAFUZFirst Sehat Tahafuz is a voluntary health insurance product offered to low income segments. This product is a cashless micro insurance product, providing coverage for hospitalization expenses, including ambulance charges under two plans:- Policy Holder/Customer and spouse- Family Plan – for a maximum of 6 members

CROP AND LIVESTOCK INSURANCECrop and Livestock Insurance products are an offering from the Govt. of Pakistan for agriculture and livestock loan customers of FMFB. Under crop insurance, total outstanding loan principal of a client is paid by the insurance company to the FMFB, in case a natural calamity or losses from crop diseases Under livestock insurance, if enrolled the customer is protected against death or disability of large mulching animal.

MICRO INSURANCE

82


FIRST TOUCH BANKING The FIRST Touch Banking gives instant banking solutions to FMFB customers at their �nger tips so they can not only manage their FMFB accounts, check account balance and transactions details but also transfer funds and pay utility bills. This app is currently available on both Android and iOS device.

SERVICES• Inquire Balance• Get Mini-Statement• Fund Transfers (Own Account, Intra/Interbank, 1Link)• Charge Mobile Wallet Account• Pay Loan Repayment Account• Make Bill Payments

FIRST ATM NETWORK FMFB has an ATM network of 76 ATMs which spreads across Pakistan and is constantly growing. The Bank has one of the best ATM up times across the industry, assured by the presence of an ATM monitoring teams working 24/7. Our FIRST ATMs provide convenience to withdraw cash, transfer money between bank accounts, make bill payments and get mini-statements at any time of the day. The FIRST Debit Card holders can also perform transactions at any 1Link member ATM across Pakistan.

SERVICES• Cash Withdrawal (upto your daily limit)• Change your FIRST Debit Card PIN• Balance Inquiry• Get Mini-Statement• Make Bill Payments• Mobile Top-Ups• Funds Transfer (Intra / Interbank and 1Link)• FIRST Debit Card Activation

FIRST DEBIT CARDFMFB is offering two variants of Debit Cards i.e. Gold and Classic that allow customers to withdraw cash from any FMFB ‘FIRST ATM’ as well as 1LINK member ATM throughout Pakistan. FMFB has recently become the First and Only bank in Pakistan to issue over 200,000 EMV compliant PayPak debit cards. This card allows the customers to shop hassle free while all transaction details can be viewed through our mobile app or SMS alerts, and also avail exciting discounts at a wholesome variety of International and Local brands Customers can access their account 24/7 with FIRST Debit card.

SERVICES• Cash Withdrawal• Funds Transfer (Intra/Inter Bank and 1Link)• Make Bill Payments • Mobile Top-Ups

DIGITAL ACCESS CHANNELS

83


FIRST IVRThe FIRST IVR Banking is a self service and unique channel for the ultimate convenience of FMFB customers to get all their banking needs answered right on their phones. From inquir-ing about their account balance to getting a mini statement, customers can avail this service, by calling the FMFB toll free number 0800-FIRST (34778) from any registered number.

FIRST SMS BANKINGFMFB launched the FIRST SMS Banking to keep a track of all transactions 24/7 by receiving real-time SMS updates and because of the service customers no longer need to call or visit the branch to inquire about their daily transactions.

SERVICES• Balance Inquiry• Get Mini Statement

FIRST USSD BANKINGFMFB has a special service for SCO (Special Communication Organization) subscribers called the FIRST USSD Banking. It enables the customers to access banking services through their mobiles using a FMFB’s secure Unstructured Supplementary Service Data (USSD) channel. To access this service, customers dial *6969# code from their registered number to check account balance, get mini statement and transfer funds without any internet connection.

SERVICES• Balance Inquiry• Get Mini Statement• Transfer funds

INSTA-1 AND INSTA-5With collaboration of NADRA, FMFB introduced INSTA-1 and INSTA-5 for the unbanked individuals and people with disability to get registered and avail the bene�ts of all the products and services that FMFB offers to its customers at their door step with the help of biometric system.

SERVICES• Opening of New Current / Asaan Banking Account• Cash Withdrawals, Cash Deposits and Funds Transfer• Apply for the FIRST Debit Card• Apply for the FIRST Touch Banking• Request for Bank Statement

84


FIRST DISCOUNT To strengthen customer relations and develop a brand loyalty, FMFB engaged with 100+ International and Local discount partners in multiple urban and semi-urban cities, where FMFB customers can avail services when making payments though the FIRST Debit Card. The discounts offered ranges from 10% to 65%.

FIRST LIVE CHATFMFB believes that providing a hassle-free environment allows customers to make safe and informed decisions. That’s why we’ve integrated the best-in-class ‘FIRST Live Chat’ facility into our website to help visitors obtain real-time assistance and enable them make the right decisions about choosing, opening and switching accounts, saving deposits, and funds transfer etc. FIRST Live Chat is being managed by our expert Customer Service Team members. It allows visitors to get in touch with experts for real-time support on products and services being provided to them.

FIRST CONTACT CENTER The state of the art FMFB FIRST Contact Center is the right choice to keep customers in step with their ever hectic schedules by providing them 24/7 services related to their bank accounts, debit cards and FIRST Touch Banking app at any point in time. Our well-abreast and dedicated Contact Center team is available round the clock to ensure that the customers daily �nancial obligations are taken care of guaranteeing them a good night’s sleep.

87


DIRECTORS' REPORT TO THE SHAREHOLDERS

devaluation of currency. As compared to December 31, 2018 the rupee devalued 12% in relation to the US Dollar, a total 41% from December 31, 2017. The average in�ation rate rose to 12.63% in December 2019.

Micro�nance customers are particularly vulnerable to the state of the economy as their capacity to repay loans is directly tied to the economic conditions. In particular, the Agriculture segment witnessed a rise in non-performing loans due to crop-related issues such as price crises of sugarcane of 2018, the low yield of sugarcane and wheat for 2019 due to heavy rains and extreme weather conditions. During the year, the geographic footprint of micro�nance institutions decreased amid increased security and administrative requirements for branches. The industry witnessed modest growth and expansion in outreach during 2019. FMFB has maintained a cautious approach with respect to

portfolio growth during the year and therefore has been able to better weather the storm currently impacting the micro�nance sector where average NPLs of micro �nance banks have signi�cantly increased ¬and as at September 31, 2019, reached 4.82% for the industry.

The Bank aims to enable people to improve their Quality of Life (QOL) with inclusive and innovative -�nancial solutions and expand its outreach in a sustainable and responsible manner. The Bank also aims to create a positive socio-economic impact by providing �nancial opportunities and stability for its customers and help improve their QOL through a robust digital platform alongside a �eld force of 3,052 employees.

The results of operations for the period under review are presented below:

The Bank remained well above the Minimum Capital Requirement (MCR) of Rs. 1 billion, with a surplus of Rs. 2.35 billion as at year end. The Bank also maintained the Capital Adequacy Ratio (CAR) requirement of 15% through-out the year with a CAR of 15.8% as at December 31, 2019.

The inclusion of technology has revolutionized the approach of �nancial services and has changed the dynamics of banking operations. Product innovation and digitization has made ease in access to �nancial services for the common man, although much remains to be done on this front. Over the last few years, FMFB has made considerable investment in its digital journey – in 2019 an innovative in-house developed Loan Origination System (LOS) was rolled out commercially to more than 35 branch-es. The Bank’s total network footprint increased to 206 locations; network expansion has been focused on the CPEC route with a presence at 53 locations along the corridor. FMFB is constructing a Regional Headquarters in Gilgit which will be the �rst Leadership in Energy and Environmental Design (LEED) certi�ed structure in Gilgit Baltistan.

Risk management, Compliance, KYC/AML remains pivotal for the Bank to achieve operational excellence. The Bank ensures strong measures for identi�cation and mitigation of potential risks As the Bank aims to increasingly provide the customers with cost effective �nancial services through its digital channels, Information security is of the utmost importance; implementation and use of information securi-ty tools and methodologies for data protection remained the Bank’s priority.

Given the advancements in provision of �nancial services, the nature of business activities has become more complex, as a result, there is more focus of regulatory authorities on compliance/ risk matters. Terrorist �nancing & money laundering presents a global threat, against which Financial Institutions have responsibility to provide robust counter measures. FMFB is fully committed to meet its obligations to combat this menace by constantly taking actions to develop, reform and implement the AML/ CFT procedures.

During the year FMFB received recognition on multiple fronts. Its digital innovations were recognized in the Annual Digi Awards. FMFB was also recognized for its continued commitment to SBP’s National Financial Literacy Program and 17 staff members were awarded for contributions in their respective geographies. FMFB’s contribution to entrepreneurial capacity building was recognized for the 5th consecutive year and 5 of FMFB’s clients received regional awards at the Citi Micro-entrepreneurship Awards. The Bank also won an award in Global Diversity & Inclusion

Benchmarks Standards Awards in the category of Recruit-ment, Retention, Development, and Advancement.

OUTLOOKThe Bank will continue to build upon its strong presence across Pakistan and will leverage it for further growth in terms of digitization and market penetration; the Bank will continue to ensure the mission of enabling individuals while generating employment opportunities. FMFB is transforming its operations with enhancement in controls, ef�ciency and productivity by digitizing and exploring new horizons to ensure �nancial inclusion through digital �nancial services. It will continue to service small farmers in agriculture and livestock, education, housing and small enterprises. The Bank will assure a strong control environ-ment and zero tolerance towards compliance requirements as prescribed by the regulators while assuring excellence in services to its customers.

The Banking industry continues to evolve as a result of rapid technological changes. Customers prefer doing banking at their ease digitally; they seek banking services at their convenience along with an instant solution. The increasing penetration of smart phones and increased usage of internet over mobile has boosted �nancial inclusion. The use of digital �nancial services will play an integral role in the growth of country’s economy. The Bank is working on enhancing its product suite through implementation of digital �nancial services with a focus on client centricity and �nancial inclusion. The Bank is focusing on leveraging technology to digitalize work processes and improve ef�ciencies with the goal of transforming FMFB into a digital Bank.

The Bank will continue to play a key part in the National Financial Inclusion Strategy (NFIS) by offering affordable �nancial services to the �nancially excluded population of the country.

The Bank will enhance and improve its focus on risk management, compliance and internal audit. FMFB will continue to ensure zero tolerance against fraud & forgery and malpractices within all operating activities and business. FMFB is determined to inculcate and enrich a compliance culture at all levels while assuring compliance to regulatory regimes and internal policies.

The Bank will continue its effort towards becoming an employer of choice. Given the overall growth strategy of FMFB, Human Resource Management will be a focus area in terms of hiring quality resource and enhancing skill sets of existing resource by providing continuous training and development.

At year end 2019, the Bank’s total outstanding loan portfolio reached Rs. 31.6 billion with an increase of Rs. 7.8 billion over 2018 (33% YoY). The Agriculture sector is the mainstay of Pakistan’s economy and an important source for generat-ing income for the majority of the population; it remained a vital sector for the Bank with Agricultural and Livestock loans having a share of 53% in the overall portfolio, compared to 51% as at December 31, 2018. During the year, FMFB continued to add customers with the number of borrowers served being 430,771; 35% of these are women.While maintaining responsible portfolio growth, the Bank managed to contain the loan loss provision expense to

2.8% of the portfolio for 2019 in comparison to 1.1% for last year. Non-performing loans rate was 3.5% for 2019 as compared to 0.9% for 2018. Furthermore, absolute total written off portfolio during the year 2019 was Rs.510 million in comparison to Rs.129 million during 2018.

Total deposits at year end were Rs. 38.4 billion, of which 51% were �xed maturity deposits. The average cost of funds for the year 2019 was 10.54%. The average Advance to Deposit ratio (ADR) remained 82% for 2019. The Invest-ment portfolio mainly comprises of Pakistan Investment Bonds, market treasury bills and term deposit receipts.

The BoD presents the 19th Annual Report of the The First Micro�nanceBank Ltd along with the Audited Financial Statements and Auditors’ Report(s) thereon for the year ended December 31, 2019.

DISCUSSION ON RESULTSThe economic outlook remained challenging, with slow growth, elevated in�ation, and a sharp

Number of Borrowers Served During the YearGross Loan Portfolio (Rs. in Million)Number of DepositorsValue of deposits (Rs. in Million)Share capital (Rs. in Million)Equity (Rs. in million)Transfer to statutory reserve (Rs. in million)Contribution to depositors’ protection fund (Rs. in million)Earnings per share (Rs.)Pro�t before taxation (Rs. in million)Pro�t after taxation (Rs. in million)

430,77131,614

1,221,70138,404

2,7316,047

10742

1.95701533

419,89023,857

986,81431,129

2,7315,503

20056

3.661,5111,000

2019 2018

88


The Bank remained well above the Minimum Capital Requirement (MCR) of Rs. 1 billion, with a surplus of Rs. 2.35 billion as at year end. The Bank also maintained the Capital Adequacy Ratio (CAR) requirement of 15% through-out the year with a CAR of 15.8% as at December 31, 2019.

The inclusion of technology has revolutionized the approach of �nancial services and has changed the dynamics of banking operations. Product innovation and digitization has made ease in access to �nancial services for the common man, although much remains to be done on this front. Over the last few years, FMFB has made considerable investment in its digital journey – in 2019 an innovative in-house developed Loan Origination System (LOS) was rolled out commercially to more than 35 branch-es. The Bank’s total network footprint increased to 206 locations; network expansion has been focused on the CPEC route with a presence at 53 locations along the corridor. FMFB is constructing a Regional Headquarters in Gilgit which will be the �rst Leadership in Energy and Environmental Design (LEED) certi�ed structure in Gilgit Baltistan.

Risk management, Compliance, KYC/AML remains pivotal for the Bank to achieve operational excellence. The Bank ensures strong measures for identi�cation and mitigation of potential risks As the Bank aims to increasingly provide the customers with cost effective �nancial services through its digital channels, Information security is of the utmost importance; implementation and use of information securi-ty tools and methodologies for data protection remained the Bank’s priority.

Given the advancements in provision of �nancial services, the nature of business activities has become more complex, as a result, there is more focus of regulatory authorities on compliance/ risk matters. Terrorist �nancing & money laundering presents a global threat, against which Financial Institutions have responsibility to provide robust counter measures. FMFB is fully committed to meet its obligations to combat this menace by constantly taking actions to develop, reform and implement the AML/ CFT procedures.

During the year FMFB received recognition on multiple fronts. Its digital innovations were recognized in the Annual Digi Awards. FMFB was also recognized for its continued commitment to SBP’s National Financial Literacy Program and 17 staff members were awarded for contributions in their respective geographies. FMFB’s contribution to entrepreneurial capacity building was recognized for the 5th consecutive year and 5 of FMFB’s clients received regional awards at the Citi Micro-entrepreneurship Awards. The Bank also won an award in Global Diversity & Inclusion

Benchmarks Standards Awards in the category of Recruit-ment, Retention, Development, and Advancement.

OUTLOOKThe Bank will continue to build upon its strong presence across Pakistan and will leverage it for further growth in terms of digitization and market penetration; the Bank will continue to ensure the mission of enabling individuals while generating employment opportunities. FMFB is transforming its operations with enhancement in controls, ef�ciency and productivity by digitizing and exploring new horizons to ensure �nancial inclusion through digital �nancial services. It will continue to service small farmers in agriculture and livestock, education, housing and small enterprises. The Bank will assure a strong control environ-ment and zero tolerance towards compliance requirements as prescribed by the regulators while assuring excellence in services to its customers.

The Banking industry continues to evolve as a result of rapid technological changes. Customers prefer doing banking at their ease digitally; they seek banking services at their convenience along with an instant solution. The increasing penetration of smart phones and increased usage of internet over mobile has boosted �nancial inclusion. The use of digital �nancial services will play an integral role in the growth of country’s economy. The Bank is working on enhancing its product suite through implementation of digital �nancial services with a focus on client centricity and �nancial inclusion. The Bank is focusing on leveraging technology to digitalize work processes and improve ef�ciencies with the goal of transforming FMFB into a digital Bank.

The Bank will continue to play a key part in the National Financial Inclusion Strategy (NFIS) by offering affordable �nancial services to the �nancially excluded population of the country.

The Bank will enhance and improve its focus on risk management, compliance and internal audit. FMFB will continue to ensure zero tolerance against fraud & forgery and malpractices within all operating activities and business. FMFB is determined to inculcate and enrich a compliance culture at all levels while assuring compliance to regulatory regimes and internal policies.

The Bank will continue its effort towards becoming an employer of choice. Given the overall growth strategy of FMFB, Human Resource Management will be a focus area in terms of hiring quality resource and enhancing skill sets of existing resource by providing continuous training and development.

At year end 2019, the Bank’s total outstanding loan portfolio reached Rs. 31.6 billion with an increase of Rs. 7.8 billion over 2018 (33% YoY). The Agriculture sector is the mainstay of Pakistan’s economy and an important source for generat-ing income for the majority of the population; it remained a vital sector for the Bank with Agricultural and Livestock loans having a share of 53% in the overall portfolio, compared to 51% as at December 31, 2018. During the year, FMFB continued to add customers with the number of borrowers served being 430,771; 35% of these are women.While maintaining responsible portfolio growth, the Bank managed to contain the loan loss provision expense to

2.8% of the portfolio for 2019 in comparison to 1.1% for last year. Non-performing loans rate was 3.5% for 2019 as compared to 0.9% for 2018. Furthermore, absolute total written off portfolio during the year 2019 was Rs.510 million in comparison to Rs.129 million during 2018.

Total deposits at year end were Rs. 38.4 billion, of which 51% were �xed maturity deposits. The average cost of funds for the year 2019 was 10.54%. The average Advance to Deposit ratio (ADR) remained 82% for 2019. The Invest-ment portfolio mainly comprises of Pakistan Investment Bonds, market treasury bills and term deposit receipts.

89


VIS, has maintained the Bank’s rating of A+ (long term) and A-1 (short term) with a Stable Outlook. These ratings represent a low expectation of credit risk, strong capacity for timely repayment of �nancial commitments in the long run and high capaci-ty of timely repayment in the short term, respectively.

Mr. Rayomond Kotwal (Chairman)Mr. Abrar Ahmed MirMr. Jesse Culain FrippMs. Maria Christine Largey (Independent Director)Mr. Masanari Yanagiuchi Ms. Maya Inayat IsmailMs. Sobia ChughtaiMr. Zahir Riaz (Independent Director)

66666666

54654666

No. of shareholders511119

Total No. of Shares Held50 shares

24,000,000 shares30,000,000 shares81,150,030 shares

137,931,035 shares273,081,115 shares

1100

25,000,00030,000,00090,000,000

10025,000,00030,000,00090,000,000

140,000,000

MEETINGS OF THE BOARD

MEETINGS OF THE BOARD COMMITTEES

CREDIT RATING

During the year 2017 International Finance Corporation (IFC) holding 24,000,000 (8.7%) shares of FMFB had exercised its put option vide notice to AKAM and AKRSP dated December 15, 2017 under the term of the Put & Call Option agreement dated June 14, 2002. AKAM exercised the option to acquire shares of IFC; after obtaining the necessary regulatory approvals the execution was completed on December 9, 2019. The Board would like to thank IFC for their support in furtherance of the objectives of FMFB and its commitment to ‘Enabling Individuals’.

The pattern of shareholding of the Bank as at December 31, 2019, as required under section 227 of the Companies Act, 2017 is as follows:

PATTERN OF SHAREHOLDING

Mr. Rayomond Kotwal (Chairman)Mr. Abrar Ahmed MirMr. Jesse Culain FrippMs. Maria Christine Largey (Independent Director)Mr. Masanari Yanagiuchi Ms. Maya Inayat IsmailMs. Sobia ChughtaiMr. Zahir Riaz (Independent Director)

3N/AN/AN/AN/A3

N/A3

Meeting heldduring the

tenure

Human ResorurceCommittee

AuditCommittee

RiskCommittee

Finacial Inclsution and IT Committee

N/AN/AN/A6

N/A66

N/A


tenure

N/A33

N/AN/AN/A3

N/A


tenure

N/A333

N/AN/AN/AN/A


tenure

3N/AN/AN/AN/A3

N/A3

Attendance

N/AN/AN/A6

N/A66

N/A

Attendance

N/A33

N/AN/AN/A3

N/A

Attendance

N/A333

N/AN/AN/AN/A

Attendance

Meeting held during thetenure Attendance

90


Shareholders holding more than 10% of voting shares are:

The Board would like to thank our valued customers for their continued patronage and support. We would also like to thank the State Bank of Pakistan, the Securities and Exchange Commission of Pakistan and other regulatory authorities along with the Pakistan Micro�nance Network and the Pakistan Banks’ Association for their continuous guidance and support. Further-more, the Board would like to record its appreciation to all the staff of FMFB who bring commitment and enthusiasm to work each day for enriching their communities and helping them in improving their Quality of Life.

ACKNOWLEDGEMENT

Categories of ShareholdersIndividualsJoint Stock Companies and CorporationsFinancial Institutions

Number1719

# of Shares Held10

135,150,070137,931,035273,081,115

Percentage0.00

49.4950.51

100.00

ShareholderHabib Bank LimitedAga Khan Agency for Micro�nanceAga Khan Rural Support Programme

Voting Rights50.51%29.71%10.99%91.20%

Number of Shares Held137,931,035 shares81,150,030 shares30,000,000 shares

249,081,065 shares

ChairmanKarachi

President & Chief Executive Of�cer

93


PROFIT /(LOSS) BEFORE TAX

CAGR 32%

2,000

1,500

1,000

500

-

(500)2008 2009 2010 2011

(81)2012

(106) (157) (54)2013 2014 2015 2016 2017

33 112 100385 492

1,007

2018

1,511

2019

701

PROFIT /(LOSS) AFTER TAX

CAGR 31%

1,200

1,000

800

600

400

200

-

(200)

(400)

2008 2009 2010 2011(93)

2012(107) (170) (63)

2013 2014 2015

312

10914327

2016 2017

686

316

2018

1,000

2019

533

MARK-UP INCOME

CAGR 26%

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

-2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

526969

1,147 1,430 1,656 1,9732,480

3,719

2018

6,047

2019

8,522

1,157 1,256

NON-MARKUP INCOME

CAGR 22%

900

800

700

600

500

400

300

200

100

-2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

69130 112 98

124 132 171

302

2018

509

2019

768

101 105

FINANCIAL PERFORMANCE TREND ANALYSIS(All amounts in Millions)

94


DEPOSITS

CAGR 23%

45,000

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

-2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

3,3055,219 5,344

7,815 8,750 9,66112,237

20,887

2018

31,129

2019

38,404

5,920 6,571

GROSS ADVANCES

CAGR 25%

35,000

30,000

25,000

20,000

15,000

5,000

-2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

2,111 2,778 2,3743,499 4,480 5,640 8,274

14,555

2018

23,857

2019

31,614

2,407 3,057

TOTAL ASSETS

CAGR 23%

50,000

40,000

30,000

20,000

10,000

-2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

4,0946,068 6,353 9,514 10,675 12,187

16,878

25,941

2018

37,625

2019

47,232

6,978 8,264

CAGR 16%

12000

1000

8000

6000

4000

2000

n2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

4,0946,068

6,353

5,188 5,080 5,1965,581

8,712

2018 2019

9,0868,292

3,8654,560

Investments PLS Deposits with other banks

95


FINANCIAL RESULTS 2012 - 2019

Rs. Million

" "

" "

" "

" "

" "

" "

" "

" "

2019

8,522

(3,468)

768

5,822

(4,268)

1,554

(853)

701

533

2018

6,047

(1,683)

509

4,873

(3,112)

1,761

(251)

1,511

1,000

2017

3,719

(857)

302

3,165

(2,066)

1,099

(92)

1,007

686

2016

2,480

(581)

171

2,070

(1,566)

504

(16)

489

316

2015

1,973

(595)

132

1,510

(1,052)

458

(73)

385

312

2014

1,656

(590)

124

1,190

(980)

210

(110)

100

109

2013

1,430

(518)

98

1,010

(839)

171

(59)

112

143

2012

1,256

(530)

105

831

(775)

56

(110)

(54)

(63)

STATEMENT OF FINACIAL POSTION

SUMMARY OF CASH FLOWS

PROFIT & LOSS ACCOUNT

Mark-up/ return earned

Mark-up/ return expensed

Fee, Commission & Other Income

Total income

Operating expenses

Operating pro�t before tax and provision

Provisions / write-offs

Pro�t /(Loss) before tax

Pro�t /(Loss) after tax

" "

" "

" "

" "

" "

" "

" "

" "

" "

" "

" "

" "

" "

" "

" "

" "

" "

" "

" "

3,500

3,352

824

1,873

6,048

(1)

-

6,047

47,232

39,228

31,614

30,936

1,106

4,513

41,185

38,404

18,697

-

36,273

3,500

3,352

676

1,478

5,505

(1)

-

5,503

37,625

32,640

23,857

23,554

214

2,807

32,122

31,129

12,528

-

27,753

3,500

3,352

419

735

4,506

(1)

-

4,506

25,941

23,107

14,555

14,395

95

5,934

21,435

20,887

8,605

-

18,917

3,500

3,352

245

232

3,828

1

2

3,831

16,878

15,064

8,274

8,183

59

4,628

13,048

12,237

5,930

298

11,183

3,500

1,352

163

1

1,516

26

3

1,544

12,187

10,722

5,640

5,526

89

4,030

10,643

9,661

4,336

646

9,288

1,500

1,352

84

(227)

1,208

25

4

1,237

10,675

9,497

4,480

4,417

37

4,273

9,438

8,750

3,419

298

8,206

1,500

1,352

55

(304)

1,102

1

5

1,109

9,514

8,638

3,499

3,450

31

4,051

8,405

7,815

3,020

296

7,305

1,500

1,352

19

(410)

981

20

6

990

8,264

7,531

3,057

2,972

45

3,538

7,277

6,571

2,450

383

6,239

Authorised capital

Paid up capital & Premium

Reserves

Unappropriated Pro�t/(Loss)

Shareholder's equity

(De�cit)/ Surplus on revaluation of assets

Deferred grants

Net Assets

Total Assets

Earning Assets

Gross Advances

Advances - net of provisions

Non-Performing Loans (NPLs)

Investments

Total Liabilities

Deposits & other accounts

Current & Saving Deposits (CASA)

Borrowings

Interest bearing Liabilities

Cash �ows from operating activities

Cash �ows from investing activities

Cash �ows from �nancing activities

Cash and cash equivalents at beginning of the year

Cash and cash equivalents at end of the year

135

(1,890)

(269)

10,682

8,657

1,546

2,337

-

6,758

10,682

2,218

947

-

3,594

6,758

(126)

(298)

2,000

2,018

3,594

317

(481)

-

2,182

2,018

(185)

(1,783)

-

4,150

2,182

631

1,393

5

2,126

4,150

235

560

246

1,085

2,126

" "

" "

" "

"

"

96


FINANCIAL SUMMARY & RATIOS 2012 - 2019

PROFITABILITY RATIOS

Pro�t before tax ratio

Gross Yield on Average Earning Assets

Gross Spread

Cost to income ratio

Return on average equity (ROE)

Return on average assets (ROA)

Return on Capital Employed (ROCE)

Non interest income to total income

Operating Exp to Pro�t before Tax

2019

12.04%

23.71%

40.69%

73.31%

9.22%

1.26%

12.14%

13.19%

608.64%

2018

30.99%

21.70%

27.83%

63.86%

19.98%

3.15%

30.17%

10.45%

206.06%

2017

31.83%

19.49%

23.03%

65.28%

16.46%

3.20%

24.17%

9.55%

204.69%

2016

23.60%

19.24%

23.42%

75.64%

11.84%

2.18%

18.29%

8.24%

319.30%

2015

25.50%

19.52%

30.18%

69.68%

22.89%

2.73%

28.27%

8.77%

272.80%

2014

8.42%

18.26%

35.65%

82.34%

9.47%

1.08%

8.67%

10.45%

974.98%

2013

11.06%

17.69%

36.24%

83.07%

13.87%

1.61%

10.83%

9.75%

746.11%

2012

-6.46%

18.19%

42.20%

93.25%

-7.27%

-0.83%

-6.16%

12.63%

-1439.45%

%

" "

" "

" "

" "

" "

" "

" "

INVESTMENT RATIOS

Earnings per share (before tax)

Earnings per share (after tax)

Net assets per share

2.57

1.95

22.15

5.53

3.66

20.15

3.69

2.51

16.50

2.22

1.44

14.03

2.85

2.31

11.43

0.74

0.81

9.15

0.83

1.06

8.20

(0.42)

(0.50)

7.32

Rs.

" "

" "

" "

941

988

3,776

24.92%

45.70%

26.17%

25.10%

ASSET QUALITY AND LIQUIDITY RATIOS

Gross Advances to deposits ratio

Net Advances to deposits ratio

Investments to deposits ratio

Weighted Average Cost of Fund

CASA to total deposits

NPLs to Gross advances ratio

NPLs to Shareholders Equity

Coverage Ratio (speci�c provision/ NPLs)

Coverage Ratio (total provision/ NPLs)

Earning assets to total assets ratio

Investments to total assets ratio

Cash & Cash Equvilants to Total Assets

Cash to Current Liabilities

Earning assets to interest bearing Liabilities

Deposits to shareholder equity

Assets to Equity

Current / Quick Ratio

82.32%

80.56%

11.75%

6.96%

48.69%

3.50%

18.29%

33.56%

61.26%

83.05%

9.55%

13.30%

15.25%

1.08

6.35

7.81

1.08

76.64%

75.67%

9.02%

5.89%

40.24%

0.90%

3.89%

32.71%

141.25%

86.75%

7.46%

21.86%

25.60%

1.18

5.65

6.84

1.21

69.68%

68.92%

28.41%

5.89%

41.20%

0.65%

2.11%

23.20%

168.23%

89.08%

22.88%

14.82%

17.93%

1.22

4.64

5.76

1.21

67.61%

66.87%

37.81%

5.66%

48.46%

0.71%

1.54%

23.86%

154.06%

89.25%

27.42%

9.79%

12.67%

1.35

3.20

4.41

1.18

58.38%

57.19%

41.71%

6.76%

44.88%

1.58%

5.88%

35.68%

128.11%

87.97%

33.07%

13.68%

15.67%

1.15

6.37

8.04

1.14

51.20%

50.48%

48.84%

7.85%

39.08%

0.83%

3.07%

45.77%

170.62%

88.96%

40.03%

11.54%

13.06%

1.16

7.24

8.84

1.05

44.78%

44.15%

51.83%

7.72%

38.65%

0.90%

2.85%

25.26%

155.92%

90.79%

42.58%

16.01%

18.13%

1.18

7.09

8.63

1.16

46.52%

45.23%

53.85%

8.71%

37.29%

1.49%

4.72%

31.96%

187.09%

91.13%

42.82%

15.99%

18.15%

1.21

6.83

8.60

1.27

%

" "

" "

" "

" "

" "

" "

" "

" "

" "

" "

" "

" "

" "

Times

" "

" "

" "

CAPITAL ADEQUACY

Tier I Capital

Total Eligible Capital

Risk Weighted Assets (RWA)

Tier I to RWA

RWA to total assets

Capital Adequacy Ratio

Net Return on Average RWA

5,439

5,936

37,372

14.55%

79.12%

15.88%

21.36%

5,093

5,474

27,697

18.39%

73.61%

19.76%

27.09%

4,191

4,422

16,714

25.08%

64.43%

26.46%

24.09%

3,651

3,784

9,565

38.17%

56.67%

39.56%

25.32%

1,460

1,604

6,782

21.52%

55.64%

23.65%

25.45%

1,179

1,226

5,083

23.20%

47.62%

24.11%

24.40%

1,078

1,119

4,669

23.09%

49.08%

23.97%

23.92%

36

78

29

(1)

Rs. Million

" "

" "

" "

PER BRANCH

Gross Advances

Deposits

CASA

PBT

159

193

94

4

130

169

68

8

100

144

59

7

69

102

49

4

52

89

40

4

45

87

34

1

40

90

35

1

Rs. Million

" "

" "

%

" "

" "

" "

97


26.31%

7.99%

%

" "

14.35%

10.34%

INDUSTRY SHARE

Deposits

Advances

* based on MicroWatch released by Pakistan Micro�nance Network

12.97%

8.68%

11.17%

7.18%

10.08%

6.04%

14.94%

6.06%

20.12%

6.71%

22.47%

6.72%

NON-FINANCIAL SUMMARY 2012 - 2019

No. of Accounts

No. of Branches & PBs

No. of Employees

ATMs

No. of ATMs

Total active Smart/ Debit Card issued

No. of Debit Cards issued during the year

373,000

84

1,068

Absolute

" "

" "

1,220,813

199

3,296

1,411,208

184

2,760

1,023,305

145

2,068

679,288

120

1,541

473,476

109

1,346

419,563

100

1,169

393,834

87

1,122

-

-

-

Absolute

" "

" "

76

120,683

173,929

76

17,111

53,086

27

497

1,822

-

-

-

-

-

-

-

-

-

-

-

-

INTERNET BANKING

No. of customers

No. of Transactions

Volume of Transactions

-

-

-

Absolute

" "

No. Million

-

111,070

1,263

3,720

38,090

453

27

247

3

-

-

-

-

-

-

-

-

-

-

-

-

98


Mark-up earned

Mark-up expensed

Net mark-up income

Provisions & write off

Net mark-up income after provisions

Non-mark-up income

Non-mark-up expenses

Pro�t before taxation

Taxation

Pro�t after taxation

8,522

(3,468)

5,054

(853)

4,201

768

(4,268)

701

168

533

92%

-37%

54%

-9%

45%

8%

-46%

8%

2%

6%

6,047

(1,683)

4,365

(251)

4,114

509

(3,112)

1,511

510

1,000

92%

-26%

67%

-4%

63%

8%

-47%

23%

8%

15%

3,719

(857)

2,863

(92)

2,771

302

(2,066)

1,007

321

686

92%

-21%

71%

-2%

69%

8%

-51%

25%

8%

17%

2,480

(581)

1,899

(16)

1,884

171

(1,566)

489

172

316

94%

-22%

72%

-1%

71%

6%

-59%

18%

6%

12%

1,973

(595)

1,377

(73)

1,305

132

(1,052)

385

73

312

94%

-28%

65%

-3%

62%

6%

-50%

18%

3%

15%

1,656

(590)

1,065

(110)

955

124

(980)

100

(9)

109

93%

-33%

60%

-6%

54%

7%

-55%

6%

-1%

6%

1,430

(518)

912

(59)

852

98

(839)

112

(31)

143

94%

-34%

60%

-4%

56%

6%

-55%

7%

-2%

9%

1,256

(530)

726

(110)

616

105

(775)

(54)

10

(63)

92%

-39%

53%

-8%

45%

8%

-57%

-4%

1%

-5%

PROFIT & LOSS ACCOUNT 2019 2018 2017 2016 2015 2014 2013 2012

VERTICAL ANALYSIS 2012 TO 2019STATEMENT OF FINANCIAL POSITION / PROFIT & LOSS

ASSETS

Cash and balances with SBP and NBP

Balances with other Banks/NBFIs/MFBs

Investments – net of provisions

Advances – net of provisions

Operating �xed assets

Other assets

Deferred tax asset

Rs. Mln

2,876

3,405

4,513

30,936

2,820

2,462

220

47,232

2019STATEMENT OFFINANCIAL POSITION %

6%

7%

10%

65%

6%

5%

<1%

Rs. Mln

2,187

6,037

2,807

23,554

1,188

1,789

63

37,625

2018

%

6%

16%

7%

63%

3%

5%

<1%

Rs. Mln

1,205

2,639

5,934

14,395

725

1,002

42

25,941

2017

%

5%

10%

23%

55%

3%

4%

<1%

Rs. Mln

841

812

5,932

8,183

496

581

34

16,878

2016

%

5%

5%

35%

48%

3%

3%

<1%

Rs. Mln

622

1,046

4,030

5,526

383

534

48

12,187

2015

%

5%

9%

33%

45%

3%

4%

<1%

Rs. Mln

484

748

4,273

4,417

206

487

60

10,675

2014

%

5%

7%

40%

41%

2%

5%

<1%

Rs. Mln

504

1,020

4,051

3,450

142

311

37

9,514

2013

%

5%

11%

43%

36%

1%

3%

<1%

Rs. Mln

376

946

3,538

2,972

130

302

-

8,264

2012

%

5%

11%

43%

36%

2%

4%

-

LIABILITIES

Deposits

Borrowings

Other liabilities

NET ASSETS

38,404

-

2,781

41,185

6,047

81%

-

6%

13%

31,129

-

993

32,122

5,503

83%

-

3%

15%

20,887

-

548

21,435

4,506

81%

-

2%

17%

12,237

298

513

13,048

3,830

73%

2%

3%

23%

9,661

646

336

10,643

1,544

79%

5%

3%

13%

8,750

290

398

9,438

1,237

82%

3%

4%

12%

7,815

296

294

8,405

1,109

82%

3%

3%

12%

6,571

383

323

7,277

987

80%

5%

4%

12%

REPRESENTED BY

Share capital

Reserves

Unappropriated pro�t/(loss)

Surplus/ (De�cit) on revaluation

of assets - net of tax

Deferred grants

3,352

824

1,873

(1)

-

6,047

7%

2%

4%

-

-

13%

3,352

676

1,478

(1)

-

5,503

9%

2%

4%

0.0%

-

15%

3,352

419

735

(1)

4,506

13%

2%

3%

-

-

17%

3,352

244

232

1

1

3,830

20%

1%

1%

0.0%

0.0%

23%

1,352

163

1

26

2

1,544

11%

1%

0.0%

0.2%

0.0%

13%

1,352

83

(227)

25

4

1,237

13%

1%

-2%

0.2%

0.0%

12%

1,352

55

(304)

1

5

1,109

14%

1%

-3%

0.01%

0.1%

12%

1,352

19

(410)

20

6

987

16%

0.2%

-5%

0.2%

0.1%

12%

99


HORIZONTAL ANALYSIS 2012 TO 2018STATEMENT OF FINANCIAL POSITION / PROFIT & LOSS

ASSETS

Cash and balances with SBP and NBP

Balances with other Banks/NBFIs/MFBs

Investments – net of provisions

Advances – net of provisions

Operating �xed assets

Other assets

Deferred tax asset

Rs. Mln

2,876

3,405

4,513

30,936

2,820

2,462

220

47,232

2019 19 v 18STATEMENT OFFINANCIAL POSITION %

32%

-44%

61%

31%

137%

37%

249%

26%

Rs. Mln

2,187

6,037

2,807

23,554

1,188

1,789

63

37,625

2018

%

81%

129%

-53%

64%

64%

79%

51%

45%

Rs. Mln

1,205

2,639

5,934

14,395

725

1,002

42

25,941

2017

%

43%

225%

<1%

76%

46%

72%

24%

54%

Rs. Mln

841

812

5,932

8,183

496

581

34

16,878

2016

%

35%

-22%

47%

48%

30%

9%

-29%

38%

Rs. Mln

622

1,046

4,030

5,526

383

534

48

12,187

2015

%

28%

40%

-6%

25%

86%

10%

-21%

14%

Rs. Mln

484

748

4,273

4,417

206

487

60

10,675

2014

%

-4%

-27%

5%

28%

45%

57%

63%

12%

Rs. Mln

504

1,020

4,051

3,450

142

311

37

9,514

2013

%

34%

8%

14%

16%

9%

3%

100%

15%

Rs. Mln

376

946

3,538

2,972

130

302

-

8,264

2012

%

6%

30%

16%

37%

2%

-3%

-

LIABILITIES

Deposits

Borrowings

Other liabilities

NET ASSETS

38,404

-

2,781

41,185

6,047

23%

-

180%

10%

31,129

-

993

32,122

5,503

49%

-

81%

22%

20,887

-

548

21,435

4,506

71%

-100%

7%

18%

12,237

298

513

13,048

3,830

27%

-54%

52%

148%

9,661

646

336

10,643

1,544

10%

123%

-15%

25%

8,750

290

398

9,438

1,237

12%

-2%

35%

12%

7,815

296

294

8,405

1,109

19%

-23%

-9%

12%

6,571

383

323

7,277

987

11%

100%

21%

25%

REPRESENTED BY

Share capital

Reserves

Unappropriated pro�t/(loss)

Surplus/ (De�cit) on revaluation

of assets - net of tax

Deferred grants

3,352

824

1,873

(1)

-

6,047

-

22%

27%

-55%

-

10%

3,352

676

1,478

(1)

-

5,503

-

61%

101%

97%

-

22%

3,352

419

735

(1)

-

4,506

-

72%

218%

-157%

-

18%

3,352

244

232

1

1

3,830

148%

50%

21323%

-95%

-56%

148%

1,352

163

1

26

2

1,544

-

96%

-100%

5%

-42%

25%

1,352

83

(227)

25

4

1,237

-

51%

-25%

2107%

-22%

12%

1,352

55

(304)

1

5

1,109

-

192%

-26%

-94%

-11%

12%

1,352

19

(410)

20

6

987

22%

2%

18%

304%

59%

25%

18 v 17 17 v 16 16 v 15 15 v 14 14 v 13 13 v 12 12 v 11

Mark-up earned

Mark-up expensed

Net mark-up income

Provisions & write off

Net mark-up income after provisions

Non-mark-up income

Non-mark-up expenses

Pro�t before taxation

Taxation


8,522

(3,468)

5,054

(853)

4,201

768

(4,268)

701

168

533

41%

106%

16%

240%

2%

51%

37%

-54%

-67%

-47%

6,047

(1,683)

4,365

(251)

4,114

509

(3,112)

1,511

510

1,000

63%

96%

52%

174%

48%

69%

51%

50%

59%

46%

3,719

(857)

2,863

(92)

2,771

302

(2,066)

1,007

321

686

50%

47%

51%

487%

47%

77%

32%

106%

87%

117%

2,480

(581)

1,899

(16)

1,884

171

(1,566)

489

172

316

26%

-2%

38%

-79%

44%

29%

49%

27%

135%

1%

1,973

(595)

1,377

(73)

1,305

132

(1,052)

385

73

312

19%

1%

29%

-34%

37%

7%

7%

284%

-894%

185%

1,656

(590)

1,065

(110)

955

124

(980)

100

(9)

109

16%

14%

17%

86%

12%

26%

17%

-10%

-71%

24%

1,430

(518)

912

(59)

852

98

(839)

112

(31)

143

14%

-2%

26%

-46%

38%

-6%

8%

-308%

-423%

326%

1,256

(530)

726

(110)

616

105

(775)

(54)

10

(63)

9%

6%

11%

-11%

16%

4%

9%

-34%

-178%

32%

PROFIT & LOSS ACCOUNT

100


PERSONNEL EXPENSES

Staff salaries and bene�ts

Contribution to de�ned contribution provident fund

Charge for de�ned bene�t gratuity fund

1,988

77

59

2,125

1,625

59

47

1,731

1,095

41

36

1,172

779

33

24

836

524

26

15

565

479

23

10

512

401

20

9

430

348

16

12

376

" "

" "

" "

" "

" "

" "

" "

" "

" "

" "

" "

" "

" "

" "

" "

" "

" "

" "

" "

" "

" "

" "

" "

" "

" "

45

6

161

203

30

127

49

104

17

7

560

40

176

158

181

66

124

64

23

3

2,143

-

-

4,268

39

200

108

91

32

87

35

64

34

4

201

29

116

129

47

102

36

25

1

1,381

-

-

3,112

22

141

68

57

12

52

26

37

20

4

114

21

91

85

33

64

14

21

8

890

1

3

2,066

33

93

54

64

22

38

31

37

7

3

93

11

84

62

24

35

16

15

5

725

1

1

1,563

9

81

49

44

8

24

24

22

1

2

59

4

61

48

18

9

11

10

1

485

2

-

1,052

9

68

50

31

16

22

21

19

5

1

45

3

86

41

16

8

12

4

8

465

2

1

980

7

58

47

25

14

23

23

18

3

2

36

3

77

29

14

6

13

3

3

404

5

-

839

7

54

41

21

14

22

21

14

2

1

42

2

61

25

15

5

9

2

39

397

2

-

775

ADMINISTRATIVE EXPENSES

Training and capacity building

Rent, rates and taxes

Utilities

Insurance

Legal and professional charges

Communications

Repair and maintenance

Stationery and printing

Advertisement and publicity

Auditors' remuneration

Depreciation

Amortization

Finance cost of lease liability on right of use assets

Travel and transportation

Of�ce security

Of�ce supplies

Information technology supplies and software

Veri�cation charges

Bank charges

Other expenses

Administrative expenses

Depreciation - grant related assets

Other charges

Total Operating Expenses " "

INCOME SUMMARY 2012 - 2019

MARKUP INCOME

Pro�t before tax Mark-up on advances

Income on investment in government securities

Income from term Deposit Receipts (TDRs)

Markup on deposit accounts with treasury & other banks

Income on other placements

Income on Term �nance Certi�cates - Net of premium

Markup on reverse Repo

BREAKUP OF INCOME 2019

7,595

325

203

396

-

-

2

8,522

2018

5,475

237

172

163

-

-

-

6,047

2017

3,295

208

162

55

3,719

2016

2,059

186

176

59

-

-

-

2,480

2015

1,547

259

114

53

-

-

-

1,973

2014

1,185

311

87

59

7

4

3

1,656

2013

1,030

238

80

69

3

7

3

1,430

2012

825

341

5

61

-

13

11

1,256

Rs. Mln

'' ''

'' ''

'' ''

'' ''

'' ''

'' ''

'' ''

NON-MARKUP INCOME

Fee, Commission & Other Income

Dividend Income

Amortization of deffered Capital Grant

Other Income

TOTAL INCOME

765

-

-

3

768

9,289

503

-

-

6

509

6,556

288

-

2

12

302

4,021

159

-

1

11

171

2,651

124

-

1

7

132

2,105

108

-

2

14

124

1,780

92

-

5

1

98

1,528

87

-

2

16

105

1,361

'' ''

'' ''

'' ''

'' ''

'' ''

OPERATING EXPENSES SUMMARY 2012 - 2019

101


PROFITABILITY2019 was a challenging year, therefore, FMFB maintained a cautious approach with respect to portfolio growth during the year and has been able to better weather the storm currently impacting the micro�nance sector where average NPLs of micro�nance banks have signi�cantly increased and as at December 31, 2019, reached 6.1% for the MFB industry. Furthermore, increases in the discount rate by the SBP has resulted in a substantial increase in funding costs; increasing in�ation and rising dollar rupee parity has also resulted in signi�cant increase in the cost of operations for the Bank. The Bank opted not to pass on all of the increases in costs to their borrowers by increasing lending rates due to the prevailing economic situation, and thus, pro�tability was expected to be negatively affected. Pro�t before provision and taxation for 2019 has recorded a decrease of 12% in comparison to last year. In 2019, the Bank recorded pro�t before tax of Rs. 701 million and pro�t after tax of Rs. 533 million, a decrease of 54 percent and 47 percent respectively from 2019. Though, the earning assets of the bank increased by 20% as compared to the last year, however, EPS of the Bank for the year 2019 was Rs. 1.95 per share as compared to Rs. 3.66 for the last year amid decline in pro�tability.

NET MARK-UP / INTEREST INCOME During the year 2019 the policy rate of SBP increased from 10.00% as of December 2018 to 13.25% as a result, the average cost of funds of FMFB has increased by 358 basis points YoY which eventually increased in cost of fund by Rs. 1.8 billion; an increase of 106% in interest expense, as compared to last the year.

Income from loan portfolio has increased by 60% as compared to last year. Interest income from investments and bank balances has increased by 62% as compared to last year. This increase was observed mainly due to increase in discount rate as well as average bank placements.

NON MARK-UP / NON-INTEREST INCOME Non-interest income mainly comprises of Fee Income earned from loan disbursement process, fee against issuance of debit cards and fee against other banking services. Due to a considerable growth in advances portfolio of the Bank and issuance of 174,000 debit cards has resulted in increase of 53% in Fee income.Furthermore, the Bank has streamlined the revenue recognition of services according to current industrial practices. The income received on services (ATM, SMS Banking etc.) is deferred and recognized in the pro�t and loss over the terms of service; any unutilized balance is recognized as deferred in the �nancial statements. As at December 31, 2019 an amount of Rs. 30m is deferred in the �nancial statements.

OPERATING EXPENSESAggregated operating expenses increased by 37%, Salaries expense increased by 23% and administrative expense increased by 55%. The increase in salaries and bene�ts is mainly due to increase in average staff head count. Whereas increase in administrative expenses was due to multiple reasons including an impact of Rs. 141 million in pro�t before tax amid implementation of IFRS 16; signi�cant increase in borrower insurance cost for micro pensioner loans; regulatory compliance for biometric veri�cation and compulsory customer messaging for digital transactions costing; signi�cant increase in minimum wage rates; utility bills expenses were also high due to increase in rates for electricity; increase in fuel prices during 2019 increased the POL cost. Furthermore, signi�cant Rupee

devaluation increased costs of information technology related expenses as well as import depended capital purchases. Furthermore, in�ation remained signi�cantly high throughout the year increasing all administrative costs.

During 2019, the Bank has also invested in geographic expansion. Five PBs have been upgraded to the status of Branches and three new Branches have been opened. Eleven sub-of�ces have been upgraded to PBs and one new PB has also been opened.

COMMENTARY ON FINANCIALS

1,900

1,650

1,150

900

650

400

150

(100)2012

Operating Pro�t Pro�t before tax Pro�t after tax

2013 2014 2015 2016 2017 2018 2019

2012 2013 2014 2015 2016 2017 2018 2019

6,000

5,000

4,000

3,000

2,000

1,000

-

16%14%12%10%

8%6%4%2%0%

Net Mark-up/Interest Income Non Mark-up/Interest

Non Markup Interest Income to Net Markup Income

Admin Expenses Salary Expenses Cost to Income

2,500

2,000

1,500

1,000

500,

-

90%

75%

60%

45%

30%

15%

0%2012 2013 2014 2015 2016 2017 2018 2019

102


RETURN ON AVERAGE ASSETS (ROA)The ROA of the Bank is 1.3% for the year 2019; a decrease of 189 basis points over last year; Total Assets increased by 26% in comparison to the previous year. Decrease in ROA is mainly due to decrease in net pro�t on the other side increase in balance sheet foot as per the increase in the deposits of the bank.

SHAREHOLDERS’ FUNDSThe aggregate shareholders’ funds have registered an increase of 10%, in absolute terms, over last year due to the earnings for the year 2019. Consequently, the breakup value per share of the Bank have increased to Rs. 22.1 as on December 31, 2019 from Rs. 20.2 as on last year end. Return on Equity (ROE) is 9.2% for the year 2019.

LOAN PORTFOLIOGross Loan Portfolio increased by 33 percent over last year to close at an all-time high of Rs. 31.6 billion. Portfolio at Risk (PAR 30+) ratio has increased to 3.5% as of December 31, 2019 compared 0.9% last year representing an increase of 260 basis points in comparison to last year. However, this is signi�cantly lower than the MFB industry which stood at 6.1% as at year end.

Major contributory factors in increase in NPL include:• Overall economic downturn and rising in�ationimpacting repayment capacity of the micro�nance borrowers on a sector level.• High portfolio concentration and some industry level issues leading to additional defaults in South Punjab.• Agriculture sector has been impacted due to Sugar cane yield issues and price crises in 2018 and 2019; severe weather conditions and back to back wheat and cotton crop crises; effect of locust attack in some areas of Sindh• Livestock sector was impacted due to low prices and selling issues during Eid season of 2019 due to multiple reasons including unprecedented rains.

OPERATING EXPENSESAggregated operating expenses increased by 37%, Salaries expense increased by 23% and administrative expense increased by 55%. The increase in salaries and bene�ts is mainly due to increase in average staff head count. Whereas increase in administrative expenses was due to multiple reasons including an impact of Rs. 141 million in pro�t before tax amid implementation of IFRS 16; signi�cant increase in borrower insurance cost for micro pensioner loans; regulatory compliance for biometric veri�cation and compulsory customer messaging for digital transactions costing; signi�cant increase in minimum wage rates; utility bills expenses were also high due to increase in rates for electricity; increase in fuel prices during 2019 increased the POL cost. Furthermore, signi�cant Rupee

devaluation increased costs of information technology related expenses as well as import depended capital purchases. Furthermore, in�ation remained signi�cantly high throughout the year increasing all administrative costs.

During 2019, the Bank has also invested in geographic expansion. Five PBs have been upgraded to the status of Branches and three new Branches have been opened. Eleven sub-of�ces have been upgraded to PBs and one new PB has also been opened.

Gross Advance Non-Performing Loans (NPL) % Age

40,000

30,000

20,000

10,000

-

4.00%

3.00%

2.00%

1.00%

0.00%2012 2013 2014 2015 2016 2017 2018 2019

NON PERFORMING LOANS’ (NPL) COVERAGE The NPL coverage ratio represents aggregate speci�c provisions against recognized NPLs as per the mandatory provision criteria which requires an increase in provision in line with the increase in risk of non-recovery. At the end of 2019, nonperforming loans amounted to Rs. 1,106 million with a speci�c coverage ratio of 34 percent. This is mainly indicative of NPL concentration towards lower overdue days, 32% below 60 days overdue and 22% below 90 days overdue.

Shareholders Fund Return on average Equity

8,000

6,000

4,000

2,000

-

25.0%

15.0%

5.0%

-5.0%

2012 2013 2014 2015 2016 2017 2018 2019

Total Assests Return on average Assests

50,000

40,000

30,000

20,000

10,000

-

4.0%

3.0%

2.0%

1.0%

0.0%

-1.0%2012 2013 2014 2015 2016 2017 2018 2019

NPL NPL Coverage

1,200

1,000

800

600

400

200

-

50%

40%

30%

20%

10%

0%2012 2013 2014 2015 2016 2017 2018 2019

103


DEPOSITS Throughout last seven years, deposits base has continuously increased with the aim to be the leading Bank in micro�nance industry. During the year 2019, a growth of 23% was achieved in customer deposits. The CASA to Term Deposit ratio is 49:51; current deposits increased by 5%, saving deposits by 66% and term deposits by 6%. Average deposit per client remained stable at Rs. 31 thousand. The Bank has also achieved a landmark of serving more than 1.2 million depositors; an increase of 24 percent compared to the last year.

ASSET QUALITY RATIO Advance to deposit ratio has increased by 568 basis points YoY to close at 82% showing improvement in utilization of funding resources towards lending business. CASA ratio witnessed an increase of 844 basis points during the year. Average cost of fund reached 10.5% in consequence to continuous increase in discount rate by SBP since H2 2018.

CAPITAL ADEQUACY RATIO (CAR) CAR as at December 31, 2019 closed at 15.8% being higher than the requirement of 15% as per the prudential regula-tions of SBP. A declining trend of CAR is observed in last few years mainly due to an increase in advances and resultant increase in risk weighted assets.

Furthermore, the bank is in process of obtaining subordinated debt to increase leverage in capital adequacy and to fuel future growth.

25,000

20,000

15,000

10,000

5,000

-

60%

50%

40%

30%

20%

10%

0%2012

Current deposits

Saving deposits

Fixed deposits

CASA Mix

2013 2014 2015 2016 2017 2018 2019

100%

50%

0%

Gross Advances to Deposit RatioCASA to Total DepositWeighted Average Cost of Fund

2012 2013 2014 2015 2016 2017 2018 2019

MAJOR CAPITAL EXPENDITURE

from growing threats on cyber security with normal replacements to ensure smooth operations.

Total capital expenditure during 2019 was Rs. 644m for business expansion, renovation and improvement of IT infrastructure.

During the year 2019, increase in IT assets were primarily due to additions made in respect of continuous improvement inour information technology platforms, safeguarding our existing infrastructure/ relations

30

25

20

15

10

5

-

PKR

Billi

ons

50%

40%

30%

20%

10%

0%

2012

Risk Weighted Assets (RWA)

Total Eligible Capital

Capital Adequacy Ratio

2013 2014 2015 2016 2017 2018 2019

104


Cash�ow from operating activitiesMarkup/Return/Interest EarnedMarkup/Return/Interest ExpensedPayments to Employees, Supplier and Others

Decrease/ (increase) in operating assets

Advances - netAccrued interest on term deposit receiptsOther assets (excluding advance taxation and gratuity)

(Increase)/Decrease in operating Liabilities

Bills payableBorrowings from �nancial institutionsDepositsOther Liabilities (excluding gratuity)

Income Tax PaidNet cash in�ow from operating activities

Investing ActivitiesInvestment in available for sale securitiesInvestment in held to maturity securitiesInvestment in held for trading securitiesProceeds from sale/ redemption of available for sale securitiesProceeds from sale/ redemption of held to maturity securitiesProceeds from sale/ redemption of held for trading securitiesDividend incomeInvestments in operating �xed assetsSale proceeds of property and equipment disposed Net cash�ow from investing activities

Financing ActivitiesReceipts/ (payments) of Sub-ordinated loanPayments of lease obligationsIssue of share capitalDividend paidNet cash�ow from �nancing activities

(Decrease)/ increase in cash and cash equivalentsCash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year

9,289 (3,468) (4,267) 1,554

(7,382)

(203) (1,095)

(8,680)

1 -

7,275 385

7,661 535

(400) 135

(325) (2,551)

- 380

1,234 - -

(633) 5

(1,890)

- (269)

- -

(269)

(2,025) 10,682 8,657

6,556 (1,683) (3,112) 1,762

(9,160)

(172) (961)

(10,293)

52 -

10,242 406

10,700 2,169 (623)

1,546

- (514)

- 689

2,864 26

- (693)

6 2,377

- - - - -

3,923 6,758

10,682

------------ Rupees Millions ------------2019 2018

CASHFLOW STATEMENT - DIRECT METHOD

107


STAKEHOLDERS’ ENGAGEMENT

Stakeholder engagement not only plays a key role in Corporate Social Responsibility but it is also emerging as a mean of unfolding a broader, more inclusive and continuous process between a company and those potentially impacted; that encompasses a range of activities and approaches. It is a way by which companies engage their stakeholders to �nd out what social and environmental issues matters most when considering their performance in order to improve service quality, decision-making and accountability.

The integration of stakeholders into sustainability risk assessment and management process help FMFB to identify and priorities stakeholders concerns.

The overall objective of this engagement is to drive strategic direction and operational excellence for the Bank. In order to bene�t the Bank; their stakeholders and wider society, FMFB always focuses on contributing to the kind of sustainable development. As a part of the bank’s engagement activities, FMFB have an effective Grievance Mechanism in place where the stakeholders can approach us through suggestion or complaints by boxes placed at each branch/ location, call to our help line, by email, by post and via our digital applications such as mobile apps and our designated social channels.

FMFB is committed to: • Being accessible and responding appropriately to legitimate concerns.• Create constructive engagements with our stakeholders by taking account of their concerns and suggestions

• Maintaining transparency and fair treatment in our engagements • Ensuring are response underpins our code of ethics and our core values

CUSTOMERA corporate objective of FMFB encourages fair treatment to the customer in all respects especially with regards to transaction and expressively discourages exploitation of deceiving customer’s right. FMFB monitors the fair term of pricing and accessibility in its product and service offering. FMFB ensure protection of its customer privacy and their personal information. Further, FMFB has a separate Customer Service Department which 24/7 deals with customers by keeping in mind all the ethical aspects.

VENDORSFMFB favors to work with local suppliers in order to support national economy and encourage local businesses. FMFB regularly engage and correspond with supplier during and after contract. FMFB promote an ethical supplier management relationship in line to Supplier Code of Conduct and Sustainability and other policy guidelines.

EMPLOYEESFMFB has excellent assortment of professional personnel who are well committed and dedicated to their respective jobs. FMFB encourages making policies that promote a culture of reward on merit basis and foster team work. FMFB believe to manage them by leading rather than by driving. FMFB ensures hiring best people for the job and strives to retain, motivate, empower and reward them for their contribution. Further FMFB engage employees by:• Team meetings and exercises • Employee Engagement events and Town Halls • CEO and Group Executive Messages

GOVERNMENTFMFB ensure compliance with applicable Rules, Regulations of regulators and legislative framework of Government regarding submission of multiple reports, return and taxes and duties etc. FMFB communicates with government authorities and regulators regarding policy, regulatory and other relevant factors.

SHAREHOLDERSFMFB always make sure that all the rights of the shareholder are well protected. Every shareholder regardless of number of their shareholding is encouraged to attend Annual review meetings and conference.

SHAREHOLDERS& INVESTORS

GOVERNMENT

EMPLOYEES

VENDORS

CUSTOMERS

REGULATORYBODIES

108


To Employees 59.1%

To Government

4.7%

To Society 0.0%

To Expansion & Growth

36.2%

2019

To Employees 49.4%

To Government

14.6%

To Society 0.0%

To Expansion & Growth

36%

2018

STATEMENT OF VALUE ADDED

Net Markup/Interest Income

Non Interest Income

Other comprehensive income/ (loss)

Operating Expenses excluding Staff Costs,

Depreciation, Amortization, Finance cost

Provision against Advances, investment & Others

Value Added available for distribution

DISTRIBUTION OF VALUE ADDED

To employees:

Remuneration, Provident fund and Other Bene�ts

To Government:

Income Tax & Others

To Society:

Donations

To Expansion & Growth:

Depreciation

Amortization

Advertisement

Finance cost of lease liability on right of use assets

Reserves

Retained Earnings

49.41%

14.57%

0.00%

5.73%

0.82%

0.96%

0.00%

7.31%

21.19%

36%

100%

2019Rupees '000

2,169,307

172,548

100

559,639

39,749

16,562

175,637

147,350

391,882

1,330,819

3,672,774

5,053,772

767,930

10,619

(1,306,706)

(852,841)

3,672,774

-

% %

57.79%

6.71%

15.24%

1.08%

0.45%

4.78%

4.01%

10.67%

36.23%

100%

2018Rupees '000

4,364,523

509,209

(1,601)

(1,117,674)

(250,988)

3,503,469

1,731,151

531,927

50

200,805

28,684

33,786

-

256,210

742,259

1,261,744

3,503,469

111


INDEPENDENT AUDITOR’S REPORTTo the members of The First Micro�nance Bank LimitedReport on the Audit of Financial Statements

Af ferguson&co

We have audited the annexed �nancial statements of The First Micro�nance Bank Limited, (the Company), which comprise of the balance sheet as at December 31, 2019, and the pro�t and loss account, the statement of comprehensive income, the statement of changes in equity and the cash �ow statement for the year then ended, and notes to the �nancial statements, including a summary of signi�cant accounting policies and other explanatory information, and we state that we have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of the audit.

In our opinion and to the best of our information and according to the explanations given to us, the balance sheet, the pro�t and loss account, the statement of comprehensive income, the statement of changes in equity and the cash �ow statement together with the notes form-ing part thereof conform with the accounting and reporting standards as applicable in Pakistan and give the information required by the Companies Act, 2017 (XIX of 2017), Micro�-nance Institutions Ordinance, 2001 and the directives issued by the State Bank of Pakistan in the manner so required and respectively give a true and fair view of the state of the Company's affairs as at December 31, 2019 and of the pro�t, other comprehensive income, the changes in equity and its cash �ows for the year then ended.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in Pakistan. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants as adopted by the Institute of Char-tered Accountants of Pakistan (the Code) and we have ful�lled our other ethical responsibili-ties in accordance with the Code. We believe that the audit evidence we have obtained is suf�cient and appropriate to provide a basis for our opinion.

Information Other than the Financial Statements and Auditor’s Report Thereon

Management is responsible for the other information. The other information obtained at the date of this auditor’s report is information included in the director’s report, but does not include the �nancial statements of the Company and our auditor’s report thereon.

A. F. FERGUSON & CO., Chartered Accountants, a member �rm of the PwC network PM Building, 3rd Floor, 49 Blue Area, Fazl-ul-Haq Road, P.O. Box 3021, Islamabad-44000, Pakistan Tel: +92 (31) 2273457-60/2604934-37; Fax: +92 (51) 2277924, 2206473; < www.pwc.com/pk>

KARACHI LAHORE ISLAMABAD

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Af ferguson&co

Our opinion on the �nancial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the �nancial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the �nancial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If based on the work we have performed, on other information obtained prior to the date of this auditor’s report, we conclude that there is a material misstate-ment of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Board of Directors for the Financial Statements

Management is responsible for the preparation and fair presentation of the �nancial state-ments in accordance with the accounting and reporting standards as applicable in Pakistan and the requirements of Companies Act, 2017(XIX of 2017), Micro�nance Institutions Ordi-nance, 2001 and the directives issued by the State Bank of Pakistan and for such internal control as management determines is necessary to enable the preparation of �nancial state-ments that are free from material misstatement, whether due to fraud or error.

In preparing the �nancial statements, management is responsible for assessing the Compa-ny’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Board of directors are responsible for overseeing the Company’s �nancial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the �nancial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs as applicable in Pakistan will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to in�uence the economic decisions of users taken on the basis of these �nancial statements.

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Af ferguson&co

As part of an audit in accordance with ISAs as applicable in Pakistan, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the �nancial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is suf�cient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepre sentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast signi�cant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the �nancial statements or, if such disclo sures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the �nancial statements, including the disclosures, and whether the �nancial statements represent the underlying t ransactions and events in a manner that achieves fair presentation.

We communicate with the board of directors regarding, among other matters, the planned scope and timing of the audit and signi�cant audit �ndings, including any signi�cant de�ciencies in internal control that we identify during our audit. Report on Other Legal and Regulatory Requirements

Based on our audit, we further report that in our opinion:

a) Proper books of account have been kept by the Company as required by the Companies Act, 2017 (XIX of 2017);

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Af ferguson&co

b) The balance sheet, the pro�t and loss account, the statement of comprehensive income, the statement of changes in equity and the cash �ow statement together with the notes thereon have been drawn up in conformity with the Companies Act, 2017 (XIX of 2017), Micro�nance Institutions Ordinance, 2001 and the directives issued by the State Bank of Pakistan and are in agreement with the books of account and returns; c) Investments made, expenditure incurred and guarantees extended during the year were for the purpose of the Company’s business; and

d) zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980), was deducted by the company and deposited in the Central Zakat Fund established under section 7 of that Ordinance.

The engagement partner on the audit resulting in this independent auditor’s report is Mr. JehanZeb Amin.

Charted AccountantsIslamabad Date: March 11, 2020

117


Cash and balances with SBP and NBPBalances with other Banks/NBFIs/MFBsLending to Financial InstitutionsInvestments – net of provisionsAdvances – net of provisionsOperating �xed assetsOther assetsDeferred tax asset

Total Assets

REPRESENTED BY:

LIABILITIES

ASSETS

NET ASSETS

BALANCE SHEET AS AT DECEMBER 31, 2019

78

910111213

2019 2018Note ------------ Rupees '000 ------------

Deposits and other accountsBorrowingsSubordinated debtOther liabilitiesDeferred tax liabilities

Total Liabilities

1415

16

17Share capitalShare premiumReservesUnappropriated pro�t

The annexed notes from 1 to 40 form an integral part of these �nancial statements.

18(De�cit) on revaluation of assetsDeferred grants

Total Capital

MEMORANDUM / OFF-BALANCE SHEET ITEMS 19

6,047,432 5,503,327

6,047,432 5,503,327

2,875,826 3,404,932

- 4,512,898

30,936,267 2,819,654 2,462,334

220,110

47,232,021

2,186,701 6,036,912

- 2,807,140

23,554,444 1,187,584 1,789,379

63,120

37,625,280

38,403,643 - -

2,780,946 -

41,184,589

31,129,077 - -

992,876 -

32,121,953

2,730,811 620,690 824,003

1,872,561

2,730,811 620,690 675,629

1,477,604

(633) -

(1,407) -

6,048,065 5,504,734

_________________________ _____________ ___________ _________ President / Chief Executive Chairman Director Director

118


Markup/Return/Interest EarnedMarkup/Return/Interest ExpensedNet Markup/Interest Income

Provision against non - performing loans and advancesRecovery against written off advancesProvision for diminution in the value of investmentsBad debts written off directly

2021

22

23

2019 2018Note ------------ Rupees '000 ------------

8,521,507 (3,467,735)

5,053,772

6,047,176 (1,682,653)

4,364,523

(884,719) 31,878

- -

(271,491) 20,503

- -

764,768 -

3,162

502,990 -

6,219

Net Markup/ Interest Income after provisions

Fee, commission and brokerage incomeDividend incomeOther incomeTotal non markup/non interest income

NON MARK-UP/ NON INTEREST INCOME

NON MARKUP/ NON INTEREST EXPENSES

(852,841) 4,200,931

(250,988) 4,113,535

767,9304,968,861

509,2094,622,744

(106,542)-

(26,636) (15,196)

---

(200,014)-

(50,004)(6,192)

---

Transfer to: Statutory reserve Capital reserve Contribution to Depositors' Protection Fund: 5% of Pro�t after tax Interest on Investment Revenue reserve Proposed Cash Dividend Rs. Nil per share (2018: Rs Nil per share) Others

(148,374)1,872,561

(256,210)1,477,604

24

25

(4,267,675) -

(25)

(3,112,150) - -

Administrative expensesOther provisions/write offsOther chargesTotal non markup/ non interest expenses

26

32

(324,908)(531)

156,990

(499,854)(32,073)

21,403

Taxation - CurrentTaxation - Prior yearsTaxation - Deferred

Extra ordinary/ unusual itemsPROFIT BEFORE TAXATION


APPROPRIATIONS:

Unappropriated pro�t carried forward

(4,267,700)701,161

-701,161

(3,112,150)1,510,594

-1,510,594

(168,449)532,712

(510,524)1,000,070

Other comprehensive income/ (loss)Unappropriated pro�t brought forwardPro�t available for appropriation

10,619 1,477,604 2,020,935

(1,601)735,345

1,733,814

Earning per share (Rupee)The annexed notes from 1 to 40 form an integral part of these �nancial statements.

1.95 3.66

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED DECEMBER 31, 2019

119


Pro�t after taxation Other comprehensive income

Other comprehensive income not to be reclassi�ed to pro�tor loss account in subsequent periods:

2019 2018

Note ------------ Rupees '000 ------------

532,712 1,000,070

10,619 (1,601)

Actuarial gain/ (loss) on de�ned bene�t obligation Related tax impact

Comprehensive income transferred to equity

Components of comprehensive income not re�ected in equity

Gain/ (de�cit) on revaluation of available for sale investments


14,956(4,337)

(2,255)654

27.4

774 (691)

774 (691)

9.4

543,331 998,469

STATEMENT OF COMPREHENSIVE INCOMEFOR THE YEAR ENDED DECEMBER 31, 2019


120


Balance as at January 1, 2018

Pro�t for the yearOther comprehensive income/ (loss)

Interest earned on investment of theDepositors' protection fundContribution for the year

Pro�t for the yearOther comprehensive income/ (loss)

Balance as at December 31, 2018

Total Comprehensive Income

Balance as at December 31, 2019

Total Comprehensive Income

2,730,811 620,690 326,723 92,696 735,345 4,506,265

2,730,811 620,690 526,737 148,892 1,477,604 5,504,734

-------------------------------------------------- (Rupees '000) --------------------------------------------------

SharePremiumAccount

Statutory& GeneralReserves

Depositors'Protection

Fund

UnappropriatedPro�t TotalShare

Capital

--

--

--

--

1,000,070(1,601)

1,000,070(1,601)

-

--

--

-200,014

6,19250,004

(6,192)(250,018)

- - - 998,469 998,469

--

--

--

--

532,71210,619

532,71210,619

- - - - 543,331 543,331

2,730,811 620,690 633,279 190,724 1,872,561 6,048,065

Capital Reserves

Interest earned on investment of theDepositors' protection fundContribution for the year


--

--

--

--

-106,542

15,19626,636

(15,196)(133,178)

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED DECEMBER 31, 2019


121


Pro�t before taxation Less: Dividend income

Depreciation on property and equipmentDepreciation on right of use assetsAmortization of intangible assetsProvision against non performing advancesProvision for diminution in the value of investments/ Other assetsGain on sale of operating �xed assetsFinance charges on lease liabilityRevaluation loss/ (income) on held for trading investmentsTermination of lease contracts under IFRS - 16 LeasesAmortization of discount on investmentsProvision for gratuity

CASH FLOWS FROM OPERATING ACTIVITIES

Adjustments for non-cash charges

2019 2018

Annexture ------------ Rupees '000 ------------

701,161-

1,510,594-

701,161 1,510,594

308,932 250,707 39,749 884,719

- (2,116)

175,637 220 (715)

(322,006) 59,381

200,805 -

28,684 271,491

- (4,584)

- (27) -

(224,790) 47,123

1,394,5082,095,669

318,7021,829,296

7,660,533594,045

10,700,2602,231,891

Lending to �nancial institutionsAdvancesAccrued interest on term deposit receiptsOther Assets (excluding advance taxation and gratuity)

(Increase)/ Decrease in operating assets

- (8,266,542) (202,719) (692,896)

- (9,431,267) (172,424) (693,974)

(9,162,157) (10,297,665)

Bills payableBorrowings from �nancial institutionsDepositsOther Liabilities (excluding gratuity)

Increase/ (Decrease) in operating liabilities

Cash in�ows from operations

528 -

7,274,566 385,439

52,195 -

10,241,885 406,180

134,941 1,546,005

Payments against provisions held against off-balance sheet obligationsContribution made to gratuity fundIncome tax paid

Net cash in�ow from operating activities

- (59,175) (399,929)

- (62,824)

(623,062)

CASH FLOW STATEMENT FOR THE YEAR ENDEDDECEMBER 31, 2019

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Investment in available for sale securitiesInvestment in held to maturity securitiesInvestment in held for trading securitiesProceeds from sale/ redemption of available for sale securitiesProceeds from sale/ redemption of held to maturity securitiesProceeds from sale/ redemption of held for trading securitiesDividend incomeInvestments in operating �xed assetsSale proceeds of property and equipment disposed

CASH FLOWS FROM INVESTING ACTIVITIES

CASH FLOWS FROM FINANCING ACTIVITIES

Net cash (out�ow)/ in�ow from investing activities

2019 2018

Note ------------ Rupees '000 ------------

(2,024,664)10,681,8358,657,171

3,923,4636,758,372

10,681,835

(325,168) (2,551,457)

- 380,179

1,234,378 - -

(633,221)5,044

- (514,035)

- 689,128

2,863,861 26,011

- (693,205)

5,698

(1,890,245) 2,377,458

Receipts/ (payments) of Sub-ordinated loanPayments of lease obligationsIssue of share capitalDividend paid

(Decrease)/ increase in cash and cash equivalentsCash and cash equivalents at the beginning of the yearCash and cash equivalents at the end of the year


Net cash out�ow from �nancing activities

-(269,360)

--

----

(269,360) -

33


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1 STATUS AND NATURE OF BUSINESS

The First MicroFinanceBank Limited (FMFB) was incorporated in the Islamic Republic of Pakistan on November 5, 2001 as a public limited company under the Companies Ordinance, 1984 (repealed by the Companies Act, 2017). The registered of�ce of FMFB is at 16-17 Floor Habib Bank Tower, Blue Area, Islamabad, Pakistan. FMFB obtained license from the State Bank of Pakistan (SBP) on January 10, 2002 to operate nationwide. Certi�cate of commencement of business was issued by Securities and Exchange of Pakistan (SECP) on February 14, 2002. FMFB's principal business is to provide micro�nance services to the poor and under served segment of the society as envisaged under the Micro�nance Institutions Ordinance, 2001. FMFB has 206 (2018: 203) business locations comprising of 199 (2018: 184) branches/ Permanent Booths (PBs) and 7 (2018:19) Pakistan Post Of�ce (PPO) sub of�ces in operation. Habib Bank Limited (HBL) is holding company of FMFB which holds 50.51% (2018: 50.51%) shares of FMFB. 2 BASIS OF PRESENTATION

These �nancial statements have been presented in accordance with the Banking Supervision Department (BSD) Circular Number 11 dated December 30, 2003 issued by the State Bank of Pakistan ("SBP").

3 STATEMENT OF COMPLIANCE

These �nancial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan. The accounting and reporting standards comprise of: - International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) as are noti�ed under the Companies Act, 2017;

- Provisions of and directives issued under the Micro�nance Institutions Ordinance, 2001 and the Companies Act, 2017; and - - - Directives issued by the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP).

Wherever the requirements of the Micro�nance Institutions Ordinance, 2001, the Companies Act, 2017 or the directives issued by the SBP and the SECP differ with the requirements of IFRS, the requirements of the Micro�nance Institutions Ordinance, 2001, the Companies Act, 2017 and the said directives prevail. These �nancial statements also comply with the disclosure guidelines for �nancial reporting by Micro�nance Institutions which are voluntary norms recommended by the Consultative Group to Assist the Poor (CGAP) and the members of the Small Enterprise Education and Promotion Network (SEEP). The SECP, through SRO 229(I)/2019 dated February 14, 2019, has noti�ed that IFRS 9, Financial Instruments, is applicable for accounting periods ending on or after June 30, 2019. The SBP, vide its circular BPRD Circular No. 04 of 2019 dated October 23, 2019 has deferred the requirements of IFRS 9; the effective date for implementation of IFRS 9 for Micro�nance Institution is January 1, 2021. Accordingly, the requirements of IFRS 9 have not been considered in preparation of these �nancial statements.

The SBP vide BSD Circular No. 10, dated August 26, 2002 has deferred the applicability of International Accounting Standard (IAS) 39, "Financial Instruments: Recognition and Measurement" and IAS 40, "Investment Property" till further instructions. Accordingly, the requirements of these standards have not been considered in the preparation of these �nancial statements. However, investments have been measured in accordance with the Prudential Regulations (the Regulations) of the SBP and presented in accordance with the requirements of SBP BSD Circular No. 11 dated December 30, 2003. Further, the SECP vide its S.R.O No. 411 (I)/ 2008 dated April 28, 2008 has deferred the applicability of International Financial Reporting Standard (IFRS) 7 "Financial Instruments: Disclosures", which is applicable for annual periods beginning on or after July 01, 2009, till further orders.

FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2019

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4 BASIS OF MEASUREMENT

The �nancial statements are prepared under the historical cost convention except:

• Investments classi�ed as held-for-trading and available-for-sale are measured at fair value.• Net obligations in respect of de�ned bene�t schemes are carried at their present values.• Right of use asset and lease liability initially measured at their present values. 4.1 Functional and presentation currency

These �nancial statements are presented in Pakistan Rupees (PKR), which is FMFB’s functional currency. All �nancial information presented in PKR has been rounded off to the nearest thousand PKR, unless otherwise stated. 5 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

5.1 Cash and cash equivalents

Cash and cash equivalents comprise of cash in hand, balances with treasury banks and balances with other banks. 5.2 Borrowing from/ lending to �nancial institutions The Bank enters into transactions of reverse repos and repos at contracted rates for a speci�ed period of time. These are recorded as under: (a) Purchase under resale agreements (reverse repo) Assets purchased under agreement to resell are not recognised in the �nancial statements as investments and the amount extended to the counterparty is included in lending to �nancial institutions. The difference between the purchase price and the contracted resale price is accrued on a time proportion basis over the period of the contract and recorded as income. (b) Sale under repurchase agreement (repo)

Assets sold subject to a repurchase agreement are retained in the �nancial statements as investments and the liability to the counterparty is included in borrowings from �nancial institutions. The difference between the sale and the contracted repurchase price is accrued on a time proportion basis over the period of the contract and recorded as an expense. 5.3 Investment

All purchases and sales of investments are recognized using settlement date accounting. The settlement date is the date on which investments are delivered to the FMFB. All investments are derecognized when the right to receive economic bene�ts from the investments has expired or has been transferred and FMFB has transferred substantially all the risks and rewards of ownership. All investments are made in accordance with the investment policy of FMFB and where required, classi�ed in accordance with the prudential regulations.

(a) Held for trading

These investments are held for a maximum period of 90 days and acquired principally for the purpose of generating pro�t from short-term �uctuations in price or dealer's margin. These are marked to market based on quoted market prices and the surplus/(de�cit) arising from changes in the fair value of securities classi�ed as held for trading is taken to pro�t and loss account. Unquoted securities are valued at cost less impairment, if any.

(b) Held to maturity

Investments with a �xed maturity, where management has both the intent and the ability to hold to maturity, are classi�ed as held to maturity. Subsequent to initial recognition at cost, these investments are measured at amortized cost, less provision for impairment in value, if any. Amortized cost is calculated using the effective interest rate method. Pro�t on held to maturity investments is recognized on a time proportion basis taking into account the effective yield on the investments. Premium or discount on acquisition of held to maturity investments are amortized through the pro�t and loss account over the remaining period till maturity.

125


(c) Available-for-sale

These are investments which do not fall under the held for trading and held to maturity categories. Such investments are initially recognized at cost and subsequently measured at market value. The surplus arising on revaluation is kept in a separate account titled 'Surplus on Revaluation of assets' through statement of comprehensive income, which is taken to pro�t and loss account when realized upon disposal. Impairment in the value of these investments is provided by charging it to the pro�t and loss account.

5.4 Advances

Advances are stated net of speci�c and general provisions. The outstanding principal of the advances, payments against which are overdue for 30 days or more are classi�ed as non-performing and divided into following four categories; Other Assets Especially Mentioned (OAEM); Substandard; Doubtful and Loss. The unrealized income/ pro�t/ markup/ service charges on non-performing advances is suspended and credited to interest suspense account. Speci�c provision against non-performing advances is made in accordance with the requirements of the Prudential Regulations issued by SBP.

(a) Other Assets Especially Mentioned

These are advances in arrears (payments/ instalments overdue) for 30 days or more but less than 60 days. (b) Substandard These are advances in arrears (payments/ instalments overdue) for 60 days or more but less than 90 days. (c) Doubtful These are advances in arrears (payments/ instalments overdue) for 90 days or more but less than 180 days. (d) Loss These are advances in arrears (payments/ instalments overdue) for 180 days or more. In accordance with the requirements of the Regulations, FMFB maintains a speci�c provision for potential loan losses for all non-performing advances as follows:

(i) Other Assets Especially Mentioned Nil

(ii) Substandard 25% of outstanding principal net of cash collateral and gold collateral (ornaments and bullion) realizable without recourse to a court of law.

(iii) Doubtful 50% of outstanding principal net of cash collateral and gold collateral (ornaments and bullion) realizable without recourse to a court of law.

(iv) Loss 100% of outstanding principal net of cash collateral and gold collateral (ornaments and bullion) realizable without recourse to a court of law. In addition to the above, a general provision is made equivalent to 1% (2018: 1%) of the net outstanding balance (advances net of speci�c provisions and loans secured against gold or other cash collateral with appropriate margin). General and speci�c provisions are charged to the pro�t and loss account in the period in which they occur. Non-performing advances are written off one month after the loan is classi�ed as “Loss”. However, FMFB continues its efforts for the recovery of the written off balances.

5.5 Operating Fixed Assets

(a) Capital work-in-progress Capital work-in-progress is stated at cost less impairment losses, if any.

(b) Property and equipment Property and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Cost

126


includes expenditure that is directly attributable to the acquisition of the asset.Depreciation is charged on the straight line method at rates speci�ed in note 11.2 to the �nancial statements, so as to write off the cost of assets over their estimated useful lives. Full month's depreciation is charged in the month of addition, while no depreciation is charged in the month of deletion. Subsequent costs are included in the assets carrying amount when it is probable that the future economic bene�ts associated with the item will �ow to FMFB and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All the other repair and maintenance expenditure is recognized in pro�t and loss account as incurred.

Gain or losses on disposal of an item of property and equipment are determined by comparing the proceeds from disposal with the carrying amounts of �xed asset. Gains are recognized within "other income" while losses are recognized in administrative expenses in the pro�t and loss account.

(c) Intangible assets An intangible asset is recognized if it is probable that the future economic bene�ts that are attributable to the asset will �ow to FMFB and that the cost of such asset can also be measured reliably. These are stated at cost less accumulated amortization and impairment losses, if any.

Intangible assets comprise of computer Core Banking System and software and related applications. Intangible assets are amortized over their estimated useful lives at the rates speci�ed in note 11.3 to the �nancial statements. Subsequent expenditure is capitalized only when it increases the future economic bene�t embodied in the speci�c asset to which it relates. All other expenditure is charged to the pro�t and loss account as incurred. 5.6 Deposits

Deposits are initially recorded at the amount received. Markup accrued on deposits, if any, is recognized separately as part of other liabilities and is charged to the pro�t and loss account over the deposit period. 5.7 Taxation

Income tax expense comprises of current and deferred tax. Income tax expense is recognized in the pro�t and loss account except to the extent that it relates to items recognized directly in equity or below equity/ other comprehensive income in which case it is recognized in equity or below equity/ other comprehensive income.

Management periodically evaluates positions taken in tax returns, with respect to situations in which applicable tax regulation is subject to interpretation, and establishes provisions, where appropriate, on the basis of amounts expected to be paid to the tax authorities. Instances where FMFB’s view differs from the view taken by the income tax department at the assessment stage and where FMFB considers that its view on items of material nature is in accordance with law, the amounts are shown as contingent liabilities.

(a) Current Current tax is the tax due on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, taking into account tax credits, rebates and tax losses, if any, and any adjustment to tax payable in respect of previous years.

(b) Prior years The charge for prior years represents adjustments to the tax charge for prior years, arising from assessments, changes in estimates, and retrospectively applied changes to law, made during the current year. (c) Deferred Deferred tax is recognized using the balance sheet liability method on all temporary differences between the amounts attributed to assets and liabilities for �nancial reporting purposes and the amounts used for taxation purposes. Deferred tax is calculated at the tax rates that are expected to be applicable to the temporary differences when they reverse, based on laws that have been enacted or substantively enacted as at the reporting date. A deferred tax asset is recognized only to the extent that it is probable that future taxable pro�ts will be available against which the asset can be utilized.

127


5.8 Staff retirement bene�ts

Staff retirement bene�ts are accrued in the period in which the associated services are rendered by employees of FMFB. The main features of the schemes operated by FMFB for its employees are as follows:

(a) De�ned bene�t plan

FMFB operates an approved de�ned bene�t gratuity fund for all employees with a qualifying service period of �ve years. Eligible employees are entitled to one month's basic salary for each completed year of service upon retirement. Actuarial valuations are conducted by an independent actuary, annually using projected unit credit method related details of which are given in note 27 to the �nancial statements. The obligation at the balance sheet date is measured at the present value of the estimated future cash out�ows. All contributions are charged to pro�t or loss for the year. Actuarial gains and losses on staff retirement bene�t plan are recognised immediately in other comprehensive income and past service cost is recognised in pro�t and loss account when they occur. (b) De�ned contribution plan

FMFB operates a de�ned contribution provident fund scheme for its eligible employees. Contributions are made by FMFB and its employees in accordance with rules of the fund.

5.9 Reserves

(a) Statutory reserve

FMFB is required to maintain a statutory reserve to which an appropriation equivalent to 20% of its annual pro�t after tax is made till such time the reserve fund equals the paid-up capital of FMFB and, thereafter, an appropriation of a sum not less than 5% of its annual pro�t after taxes in accordance with statutory requirements under the Micro�nance Institutions Ordinance, 2001.

(b) Depositors' Protection Fund

FMFB contributes 5% of its annual pro�t after tax along with related income on investment (net of related tax) to the Depositors' Protection Fund, as required under the Micro�nance Institutions Ordinance, 2001. 5.10 Provisions

A provision is recognised when, and only when, FMFB has a present obligation (legal or constructive) as a result of a past event, it is probable that an out�ow of resources embodying economic bene�ts will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. 5.11 Contract liability

The contract liabilities of FMFB comprises of advance payments received from customers in respect of services to be rendered by FMFB.

5.12 Grants

Income from grants is recognized according to the related terms and conditions. Income related to grants for the funding of projects and programs is recognized as the expenditure is incurred on projects and programs.

The grants which involve funding for �xed assets are deferred and amortized to the pro�t and loss account when the related �xed asset is depreciated/ amortized. Other grants are recognized as income in the year of receipt. 5.13 Foreign currency transactions

The �nancial statements are presented in Pakistan Rupee, which is FMFB's functional currency. Transactions in foreign currencies are translated into Pakistan Rupee at the exchange rate prevailing on the date of the transaction. All monetary assets and liabilities in foreign currencies are translated into Pakistan Rupee at the rate of exchange approximating those

128


ruling at the balance sheet date. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at the year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in pro�t and loss account.

5.14 Revenue recognition

(a) Markup/ interest income on advances

Markup/ interest income on advances is recognized on an accrual/ time proportion basis using the effective interest method at FMFB's prevailing interest rates for the respective loan products. Markup/ interest income on advances is collected with loan instalments along with additional service charge accrued due to late payment, if any. Markup/ interest income/ additional service charge is accrued till the date when advances become over due by 30 days. Markup/ interest income/additional service charge accrued on advances over due by 30 days or more is reversed and credited to suspense account. Subsequently, Markup/ interest income/ additional service charge recoverable on non-performing advances is recognized on receipt basis in accordance with the requirements of the Prudential Regulations. (b) Income from investments

Markup/ return on investments is a recognized using the effective interest rate method. Where debt securities are purchased at a premium or discount, the related premium or discount is amortized through the pro�t and loss account over the remaining period of maturity.

(c) Dividend income

Dividend income is recognized when FMFB’s right to receive the dividend is established. (d) Fee, commission and brokerage income Fee, commission and brokerage income is recognized in the pro�t and loss to the extent of services rendered. Any advance payments received from customers for which services are yet to be rendered by FMFB, are recognized as contract liability in the �nancial statements.

(e) Income from lending to �nancial institutions The income on reverse repo transactions arising from the difference between the sale and repurchase price is recognized using the effective yield method.

(f) Income from inter bank deposits

Income from inter bank deposits in saving accounts is recognized in the pro�t and loss account as it accrues using the effective interest method.

5.15 Financial instruments

Financial assets and liabilities are recognized when FMFB becomes a party to the contractual provisions of the instrument. These are derecognized when FMFB ceases to be the party to the contractual provisions of the instrument.

All �nancial assets and liabilities are initially measured at cost which is the fair value of the consideration given and received, respectively. These �nancial assets and liabilities are subsequently measured at fair value, amortized cost or historical cost, as the case may be.

(a) Financial assets Financial assets are Cash and Balances with SBP and National Bank of Pakistan (NBP), Balances With Other Banks/NBFIs/MFBs, lending to �nancial institutions, investments, advances and other receivables. Advances are stated at their nominal value as reduced by appropriate provisions against non-performing advances, while other �nancial assets excluding investments are stated at cost. Investments classi�ed as available for sale and held for trading are valued at year end prices and investments classi�ed as held to maturity are stated at amortized cost.

(b) Financial liabilities Financial liabilities are classi�ed according to the substance of the contractual arrangement entered into. Financial

129


liabilities include deposit and other accounts, borrowings and other liabilities which are stated at their nominal value. Any gain or loss on the recognition and de-recognition of the �nancial assets and liabilities is included in the pro�t and loss account for the period in which it arises. 5.16 Off-setting

Financial assets and �nancial liabilities are only off-set and the net amount is reported in the �nancial statements when there is a legally enforceable right to set off the recognized amount and FMFB intends either to settle on a net basis or to realize the assets and to settle the liabilities simultaneously. 5.17 Borrowing costs

Borrowing costs which are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of that asset. All other borrowing costs are charged to pro�t and loss account. 5.18 Markup bearing borrowings

Mark-up bearing borrowings are recognized initially at cost being the fair value of consideration received, less attributable transaction costs. Subsequent to initial recognition, markup bearing borrowings are stated at original cost less subsequent repayments.

5.19 Standards, interpretations of and amendments to published approved accounting standards that are effective in the current year

IFRS 16: 'Leases', became effective from annual period beginning on or after January 1, 2019. The impact of the adoption of IFRS 16 on FMFB's �nancial statements is disclosed in note 5.21. There are certain other new and amended standards, interpretations and amendments that are mandatory for the FMFB's accounting periods beginning on or after January 1, 2019 but are considered not to be relevant or do not have any signi�cant effect on the FMFB's operations and are therefore not detailed in these �nancial statements. 5.20 Standards, interpretations of and amendments to published approved accounting standards that are not yet effective

a) Following standards has been issued by the International Accounting Standards Board (IASB), which is yet to be noti�ed by the Securities and Exchange Commission of Pakistan (SECP) for the purpose of its applicability in Pakistan:

IFRS 1 First-Time Adoption of International Financial Reporting Standards (Amendments)IFRS 17 Insurance Contracts

b) Following standards and amendments to published accounting standards will be effective in future periods and have not been early adopted by the Bank.

IAS 1 Presentation of Financial Statements (Amendments)IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors (Amendments)IAS 39 Financial Instruments: Recognition and Measurement (Amendments)IFRS 3 Business Combinations (Amendments)IFRS 7 Financial Instruments: Disclosures (Amendments)IFRS 9 Financial Instruments (Amendments)IFRS 17 Insurance Contracts

January 1, 2020January 1, 2020January 1, 2020January 1, 2020January 1, 2020January 1, 2020January 1, 2022

July 1, 2009January 1, 2022

Effective date (annual periodsbeginning on or after)

Effective date (annual periodsbeginning on or after)

The management does not anticipate early adoption of above standards and amendments and is currently evaluating the impact of adopting these standards.

130


5.21 Changes In Accounting Policies

(i) Leases

(a) During the period, IFRS 16 - 'Leases' became applicable to FMFB. IFRS 16 replaces existing guidance on accounting for leases, including IAS 17 - 'Leases', IFRIC 4 - 'Determining whether an Arrangement contains a Lease', SIC 15 - 'Operating Leases - Incentives' and SIC 27 - 'Evaluating the Substance of Transactions Involving the Legal Form of a Lease'. IFRS 16 introduces an on balance sheet accounting model for leases entered by the lessee. A lessee recognises a right of use asset representing its right of using the underlying asset and a corresponding lease liability representing its obligations to make lease payments. Lessor accounting remains similar to the current standard i.e. lessors continue to classify leases as either �nance or operating leases.

FMFB has adopted IFRS 16 from January 1, 2019 and has not restated comparatives for the 2018 reporting period, as the said treatment is permitted under the speci�c transitional provisions, speci�ed in IFRS 16. (b) On adoption of IFRS 16, FMFB has recognised liabilities in respect of leases which had previously been classi�ed as operating leases under IAS 17. These liabilities were initially measured as the present value of the remaining lease payments, discounted using the FMFB's incremental weighted average borrowing rate as of January 1, 2019. The lease liability is subsequently measured at amortised cost using the effective interest rate method.

"December 31, “January 01, 2019" 2019” ------Rupees in '000'------

Lease liability recognised 1,400,475 1,222,648

(c) On adoption of IFRS 16, the associated right of use assets were measured at the amount equal to the lease liability, adjusted by the amount of prepaid lease payments recognised in the balance sheet immediately before the date of initial application.

The right of use assets recognised subsequent to the adoption are measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred.

The right of use assets are depreciated on a straight line basis over the lease term as this method most closely re�ects the expected pattern of consumption of future economic bene�ts. The right of use assets are reduced by impairment losses, if any, and adjusted for certain remeasurements of lease liability.

"December 31, “January 01, 2019" 2019” ------Rupees in '000'------

Lease liability recognised 1,350,458 1,328,900

(d) The effect of this change in accounting policy is as follows:

Impact on Balance sheet

Increase in �xed assets - right-of-use assets Decrease in other assets - advances, deposits and prepayments Increase in other assets - advance taxation Increase in total assets

Decrease in other liabilities - rent payableIncrease in other liabilities - lease liability against right of use assets

Decrease in net assets

1,350,458(103,793)

40,9461,287,611

12, 619(1, 400,475)(1,387,856)

(100,245)

1,328,900(106,252)

-1,222,648

-(1,222,648)(1,222,648)

-

131


Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised if the revision affects only that period, or in the period of the revision and future periods. Information about signi�cant areas of estimation, uncertainty and critical judgments in applying accounting policies that have signi�cant effect on the amounts recognized in the �nancial statements are as follows: (a) Classi�cation of investments (note 5.3)

(b) Valuation and impairment of available for sale securities (note 5.3)

(c) Provision against non - performing loans and advances (note 5.4)

(d) Valuation and useful life of operating �xed assets (note 5.5) (e) Taxation (note 5.7)

(f) Present value of staff retirement bene�ts (note 5.8)

(g) Provisions (note 5.10) (h) Lease term and effective interest rate for recognition of lease contracts (note 5.14)

For the yearended December

31, 2019

Impact on Pro�t and loss account

(Increase) / decrease in administrative expenses: - Depreciation on right of use assets - Finance cost - lease liability of right of use assets - Rent expense - Termination of lease contracts under IFRS - 16 Leases - IT software and supplies rentDecrease in pro�t before taxDecrease in taxDecrease in pro�t after tax

Earnings per share for the year ended December 31, 2019 is Rs. 0.37 lower as a result of the adoption of IFRS 16.

(250,707) (175,637) 252,228

715 32,210

(141,191) (40,946) (100,245)

Rupees in '000

While implementing IFRS 16, FMFB has used a single discount rate methodology for a portfolio of leases with similar characteristics. FMFB has opted not to recognise right of use assets for leases of low value. The payments associated with such leases are recognised as an expense on a straight line basis over the lease term. 6 SIGNIFICANT ACCOUNTING ESTIMATES

The preparation of �nancial statements in conformity with approved accounting standards as applicable in Pakistan, requires management to make judgments/estimates and associated assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. These judgments/ estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the result of which form the basis of making the estimates about carrying value of assets and liabilities that are not readily apparent from other sources.

132


Cash in hand Balance with State Bank of Pakistan Balance with National Bank of Pakistan in Current account Deposit accounts

In Pakistan - on current accounts - on deposit accounts - on term deposits accounts

7.1 This balance maintained in current accounts with SBP to meet the Cash Reserve Requirement (CRR).7.2 These carry markup at the rate of 8.25% (2018: 3%) per annum.

7 CASH AND BALANCES WITH SBP AND NBP

8.1 These carry markup at rates ranging between 11.40% to 14.25% (2018: 3.75% to 11%) per annum.

8.2 These include balances for an amount of Rs. 420,216 thousand (2018: Rs. 610,630 thousand), held with Habib Bank Limited, a related party.

8.3 These carried markup at rates ranging between 10.5% to 11.0% per annum.

8 BALANCES WITH OTHER BANKS/NBFIS/MFBS

7.1

7.2

2019 2018

Note ------------ Rupees '000 ------------

2019 2018

Note ------------ Rupees '000 ------------

1,056,686 1,367,625

- 451,515

2,875,826

690,758 1,140,650

- 355,293

2,186,701

8.1, 8.28.3

77,561 3,327,371

- 3,404,932

113,838 3,923,074 2,000,000 6,036,912

Held to Maturity Federal Government securities Pakistan Investment Bonds Market Treasury Bills

Available for Sale Federal Government securities Pakistan Investment Bonds - AFS Market Treasury Bills - AFS

9 INVESTMENTS - NET OF PROVISIONS

Term Deposit Receipts (TDRs) 9.3 1,558,4271,763,180

7,585222,312

2019 2018

Note ------------ Rupees '000 ------------

9.19.2

- 204,753 204,753

60,147 154,580 214,727

9.19.2

- 2,210,455 2,210,455

95,2232,491,0122,586,235

Held for Trading Federal Government securities Market Treasury Bills - HFT

De�cit on revaluation of available for sale investments

9.1 These bonds were held with maturity of three years and carried markup at the rates at 7.0% per annum, payable on a semi-annual basis which have matured in April 2019. These also included a bond with maturity of three years held for the purposes of Depositors' Protection Fund with a carrying amount of Rs. 10,024 thousand and carried a markup at the rate of 7% per annum, payable on a semi-annual basis which has matured in April 2019.

9.2

9.4 (633) 4,512,898

(1,407) 2,807,140

539,896 539,896

- -

133


9.4 Particulars of surplus on revaluation of available for sale investments:

Note

18

9.2 These represent securities with original maturity period of three month to one year carry markup at the rates ranging between 13.08% to 13.68% (2018: 8.72% to 10.31%) per annum. These also include securities with original maturity period of three month held for the purposes of Depositors' Protection Fund with a cumulative carrying amount of Rs. 204,753 thousand (2018: Rs. 154,580 thousand) and carry markup at the rates ranging between 13.10% to 13.64% (8.72% to 8.80%) per annum. 9.3 These represent TDR's with original maturity of six months to one year carrying markup at rates ranging between 11.65% to 15.50% (2018: 6.90%) per annum, payable on maturity.

Opening balance Gain/ (loss) transferred to revaluation of assets account below equityClosing balance

(1,407) 774

(633)

(716) (691)

(1,407)

------------ Rupees '000 ------------2019 2018

Less: Speci�c provision General provision - Mandatory provision at the rate of 1% - Additional provision

Number of loansutstanding

(Number)

2019 2018

(Rupees '000) (Number) (Rupees '000)

Amount of loansoutstanding

Number of loansoutstanding

Amount of loansoutstanding

Note

10.1 These include advances for an aggregate amount of Rs. 65,192 thousand (2018: Rs. 78,321 thousand) secured against gold collaterals and cash deposits whereas the remaining advances except staff and key management personnel loans are secured by personal guarantee. Advances includes 1,099 (2018: 804) staff loans, aggregating to Rs. 547,620 thousand (2018: Rs. 452,490 thousand), carrying markup at the rates ranging between 3% to 5% per annum (2018: 3% to 5% per annum). These also include outstanding loans of the key management personnel (KMP) which have been disclosed in note 34. 10.2 Particulars of non performing loans Following is the detail of advances which have been placed under non-performing status in accordance with note 5.4.

456,527 30,077

486,604

10.1 10.2

30,507,746 1,106,004

31,613,750

416,544 7,849

424,393

23,642,835214,267

23,857,102

10 ADVANCES - NET OF PROVISIONS

Microcredit: Considered good Considered doubtful

371,227

306,154

102 306,256 677,483

30,936,267

70,092

232,511

55 232,566 302,658

23,554,444

10.3

10.3

134


353,320 244,303 385,479 122,902

1,106,004

349,249 241,732 379,741 120,923

1,091,645

4,0712,5715,7381,179

14,359

- 60,433

189,871 120,923 371,227

- 60,433

189,871 120,923 371,227

0%25%50%100%

2019 O

ther Assets Especially Mentioned

Sub-standard Doubtful Loss Total

72,038 41,871 74,370 25,988

214,267

69,838 41,318 71,448 24,038

206,642

2,200 553

2,922 1,950 7,625

- 10,330 35,724 24,038 70,092

- 10,330 35,724 24,038 70,092

0%25%50%

100%

2018O

ther Assets Especially Mentioned

Sub-standard Doubtful Loss Total

Classi�cation

10.3 Particulars of provision against non perform

ing advances

Amount

outstandingSecured

loanAm

ount to be provided for

Required provision

percentage

Provision required Am

ountProvision

held

Rupees '000Rupees '000

70,092 811,029 509,894

- 301,135 371,227

232,56673,690--73,690

306,256

302,658 884,719 509,894

- 374,825 677,483

Opening balance

Charge for the yearLess: Am

ounts written off

Less: Reversal of provision

Closing balance

Speci�cG

eneralTotal

2019

Rupees '000

22,103 177,120 129,131

- 47,989 70,092

138,195 94,371

- -

94,371 232,566

160,298 271,491 129,131

- 142,360 302,658

Speci�cG

eneralTotal

2018

Rupees '000Note

10.4

135


30,507,746 353,320 244,303 385,479 122,902

31,613,750

- 1.12%0.77%1.22%0.39%3.50%

23,642,835 72,038 41,871 74,370 25,988

23,857,102

- 0.30%0.18%0.31%0.11%0.90%

Current and less than 30 days late30-59 days late 60-89 days late 90-179 days late 180 days or more late

2019

Amount (Rupees '000)

Loans

2019

Portfolio at Risk %

2019

Amount (Rupees '000)

2019

Portfolio at Risk %

10.4 Particulars of write offs

Note

10.4.1Against provisions Directly charged to pro�t and loss account

509,894 -

509,894

129,131-

129,131

------------ Rupees '000 ------------2019 2018

10.4.1 These represent non performing advances, overdue for 210 days or more, which are written-off in accordance with the policy of FMFB, as explained in note 5.4 to the �nancial statements. 10.4.2 There is no requirement for the borrowers to save and deposit any amount as a condition for the loan disbursement. 10.5 Portfolio quality report FMFB's main measure of loan delinquency is an aged portfolio-at-risk ratio. Loans are separated into classes depending on the number of days they are over-due. For each class of loan, the aggregated outstanding principal balance of such loan is divided by the aggregated outstanding principal balance of the gross loan portfolio before deducting allowance for non-performing advances. Loans are considered overdue if any payment has fallen due and remained unpaid. Loan payments are applied �rst to additional markup/ interest due and then to instalment of principal that is due but unpaid. The number of days of delay is based on the due date of the earliest loan instalment that has not been fully paid.

In 2019, 13 loan products (2018: 13 loan products) have been disbursed with tenures ranging from 3 months to 7 years (2018: 3 months to 7 years), in accordance with the needs of the borrowers. Advances also included staff house loan for permanent staff only having maturity up to 240 months (2018: 240 months). Other staff loans includes general purpose and transport purpose have maturity up to 60 months (2018: 60 months).

Loan repayments are scheduled on a bullet or instalment basis whereby principal, markup/ interest and service charges are recovered on an instalment basis and/ or on maturity as per the repayment schedule. Management estimates that the average term of its outstanding loan portfolio is 10.3 months (2018: 10.2 months) based on the remaining weighted average tenure of loans outstanding as at the balance sheet date.

Measures related to the classi�cation of late payments are mentioned in note 5.4.

10.6 Current recovery ratio Current recovery ratios are calculated on a monthly basis for management reporting purposes. The numerator of this ratio is cash received on account of principal during the reporting period (including prepayments and late payments). The denominator is total payments of principal amounts that fell due for the �rst time during the reporting period, as per the terms of the original loan contracts (regardless of any subsequent loan renegotiations). Loan delinquency is measured using the Non Performing Loans (NPL) ratio.

136


Period

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

Loan typeAgri inputLive stockMicro-enterpriseOthers

10.7 Portfolio by segment

Note

10.7.1

105%103%102%102%103%

112%108%106%110%109%

2019

Current recovery ratio in %

The Annual Loss Rate (loans written off during the year divided by average loan portfolio outstanding)for the year is 1.84% (2018: 0.67%).

10.7.1 These contain loans provided for general purposes including loans provided under housing product amount to Rs. 3,092,815 thousand (2018 Rs. 1,632,839 thousand).

2018

3,674,441 12,992,405 8,907,149 6,039,755

31,613,750

2,786,911 9,374,899 6,719,259 4,976,033

23,857,102

------------ Rupees '000 ------------2019 2018

These include advance against construction amounting to Rs. 10,214 thousand (2018: Rs. 7,000 thousand), paid to Aga Khan Planning & Building Services, a related party.

144,011 1,106,812

218,373 1,350,458 2,819,654

155,229 833,672 198,683

- 1,187,584

11 OPERATING FIXED ASSETS Note 11.111.211.311.4

Capital work-in-progressProperty and equipment Intangible assetsRight of use assets

------------ Rupees '000 ------------2019 2018

- -

144,011 144,011

- -

155,229 155,229

11.1 Capital work-in-progress

Civil worksEquipmentsAdvances to suppliers and contractors

11.1.1 Movement in the Capital work-in-progress is as follows:

155,229 314,729

(274,858) (51,089)

(325,947) 144,011

62,725 382,650

(276,991) (13,155)

(290,146) 155,229

Opening balanceAdditions during the yearTransfers to: - Property and equipment - Intangible assets

Closing balance

137


7,814 524,243 143,372 364,671 353,822 171,729

1,565,651

- 198,125 46,207

141,334 135,146 64,188

585,000

- (17,966) (6,749)

(10,963) (10,545) (3,697)

(49,920)

7,814 704,402 182,830 495,042 478,423 232,220

2,100,731

- 201,062 75,466

156,886 200,653 97,912

731,979

- 77,382 26,730

100,120 86,408 18,292

308,932

- (16,249) (6,105)

(10,679) (10,497) (3,462)

(46,992)

- 262,195 96,091

246,327 276,564 112,742 993,919

7,814 442,207 86,739

248,715 201,859 119,478

1,106,812

14%20%25%

20% - 33%

20%

2019Free hold landLease hold im

provements

Furniture and �xturesO

f�ce equipment

Computer equipm

entVehicles

7,814 305,431 110,015 195,925 262,572 143,066

1,024,823

- 222,439

36,135 174,848

93,508 37,579

564,509

- (3,626) (2,778) (6,102) (2,258) (8,916)

(23,680)

7,814 524,243 143,372 364,671 353,822 171,729

1,565,651

- 160,725

59,126 101,809 145,265

86,815 553,740

- 43,554 18,791 60,865 57,636 19,959

200,805

- (3,217) (2,451) (5,788) (2,248) (8,862)

(22,566)

- 201,062

75,466 156,886 200,653

97,912 731,979

7,814 323,181

67,906 207,785 153,169

73,817 833,672

14%20%25%

20% - 33%

20%

2018Free hold landLease hold im

provements

Furniture and �xturesO

f�ce equipment

Computer equipm

entVehicles

11.2 Property and equipm

ent

At January 01Additions

Disposals /W

rite offsAt Decem

ber 31 Rate

per annum

%

At January 01Charge

for the year On Disposals /W

rite offsAt

December 31

At Decem

ber 31

Cost


Accumulated Depreciation

Net Book Value

11.2.1 Property and equipm

ent includes fully depreciated items, still in use, having a cost of Rs. 394,165 thousand (2018: Rs. 352,561 thousand).

11.2.2 During the period the FM

FB has changed the estimate for useful life of fully ow

ned vehicles from �ve to seven years. This change in accounting estim

ate has been accounted for prospectively in these �nancial statem

ents as per the requirements of International Accounting Standard 8 "Accounting Policies, Changes in Accounting Estim

ates and Errors". Had the estim

ate not been changed, the written dow

n value of operating �xed assets and pro�t before tax would have been low

er by Rs. 8,750 thousand.

11.2.3 As required by BSD Circular No 11 of 2003, details of property and equipm

ent disposed off during the year is disclosed in Annexure-I and forms integral part of these �nancial

statements.

138


199,692 76,547

- 276,239

6,853 51,072 1,514

59,439

- - - -

206,545 127,619

1,514 335,678

42,265 35,291

- 77,556

20,254 19,419

76 39,749

- - - -

62,519 54,710

76 117,305

144,026 72,909 1,438

218,373

10%20%20%

2019Core banking systemCom

puter softwares

Branchless banking

Right of use assets - Initial Recognition under IFRS-16

Additions during the period Deletions during the year

Depreciation charged during the periodNet book value at the end

186,537 53,510

- 240,047

13,155 23,037

- 36,192

- - - -

199,692 76,547

- 276,239

22,560 26,312

- 48,872

19,705 8,979

- 28,684

- - - -

42,265 35,291

- 77,556

157,427 41,256

- 198,683

10%20%

2018Core banking systemCom

puter softwares

Branchless banking

11.3 Intangible assets

11.4 Right of use assets At January 01

Additions Disposals /W

rite offsAt Decem

ber 31 Rate

per annum

%

At January 01Charge

for the year On Disposals /W

rite offsAt

December 31

At Decem

ber 31

Cost


Accumulated Depreciation

Net Book Value

11.3.1 These include fully depreciated item

s, still in use, having a cost of Rs. 22,763 thousand (2018: Rs. 20,890 thousand).

These include right of use assets of an amount of Rs. 109,969 thousand (2018: Nil), held of Habib Bank Lim

ited, a related party.

1,328,900 291,801 (19,536)

(250,707) 1,350,458

- - - - -

Note 5.21

------------ Rupees '000 ------------2019

2018

139


2,528,470

(578,780) 27,675

1,977,365

12.1 1,537,329

(222,978) 16,475

1,330,826

12 OTHER ASSETSNote

Income/ Markup accrued on: - loans and advances - non performing loans and advances transferred to suspense account - investments and bank accounts

4,639 6,945

34,281 194,906 226,514

5,755 11,821

108 2,462,334

12.2

12.3

27.3

2,916 4,845

125,252 120,416 195,184

9,940 - -

1,789,379

Advances to employees Deposits Prepayments Taxes - net of provision Other receivables Stationery stock Receivable from de�ned bene�t gratuity fund Other asset

------------ Rupees '000 ------------2019 2018

196,470 40,946 8,700

246,116

15,419

115,608 1,090,674

1,221,701

19,706,543

15,165,784 3,531,316

38,403,643

15,492

114,130 857,192

986,814

18,601,231

9,152,076 3,375,770

31,129,077

84,744--

84,744

13 DEFERRED TAX ASSET

Deferred tax asset arising on account of deductibletemporary differences on: Provision against non-performing loans and advances Lease liability net of right of use assets Contract liability

(26,006)220,110

(21,624)63,120

Deferred tax liability arising on account of taxable temporary differences on: Operating �xed asset

------------ Rupees '000 ------------2019 2018

Note2019

(Number of accounts)2019

(Rupees '000) 2018


(Rupees '000)

14 DEPOSITS AND OTHER ACCOUNTS

Time liabilities Fixed DepositsDemand liabilities Saving deposits Current deposits

12.1 These include Income/ markup accrued on loans and advances for an amount of Rs. 62 thousand (2018: Rs. 1,043 thousand) due to related parties which have been disclosed in note 34. 12.2 This included prepayment of rent for an amount of Rs. 20,637 thousand in 2018 to Habib Bank Limited, a related party, however due to change in accounting policy on adoption of IFRS 16, prepayments are added to right of use assets and is also disclosed in note 11.4.1. 12.3 These include an amount of Rs. 2,966 thousand (2018: Rs. 3,469 thousand) due from related parties which have been disclosed in note 34 and amount of Rs. 123,627 thousand (2018: Rs. 105,142 thousand) receivable from SBP in respect of insurance premium paid by FMFB for livestock and crop loans under AC&MFD Circular No. 1 of 2013 dated November 1, 2013.

140


15 BORROWINGS

During the year, the Bank entered into running �nance facility agreement amounting to a maximum facility limit of Rs. 1,000 million with National Bank of Pakistan to meet operational and business requirements of FMFB. The principal amount is repayable at the end of the term and carries mark-up at the rate of three months KIBOR + 0.80% per annum payable on quarterly basis. This is secured against �rst charge on all present and future current assets of FMFB (excluding cash and balances with SBP to maintain statutory liquidity ratio and Cash reserve requirement) to the extent of Rs. 1,333,334 thousand. The term of the running �nance facility is 1 year commencing from July 31, 2019. As at year end the facility availed during the year had been fully repaid.

930,281 80,419

275,460 52,321 11,990

- 1,400,475

- 30,000

- 2,780,946

16.1

16.2

27.316.3

16.4

616,009 79,891

257,709 18,274 15,705

2,929 - - -

2,359 992,876

Note16 OTHER LIABILITIES

14.2 PARTICULARS OF DEPOSITS BY OWNERSHIP

Markup/ Return/ Interest payableBills payableAccrued liabilitiesWithholding tax payableRetention moneyPayable to de�ned bene�t gratuity fundLease liability on right of use assetsPayable to de�ned contribution provident fundContract liability Other payables

------------ Rupees '000 ------------2019 2018

1,193,86627,366

4691,221,701

15,231,97414,832,7108,338,959

38,403,643

956,66629,663

485986,814

13,097,85710,762,584

7,268,63631,129,077

Note2019


(Rupees '000) 2018


(Rupees '000)

Individual depositors Institutional depositors a) Corporations/ Firms b) Banks and �nancial institutions

14.1 These include balances for an amount of Rs.5,350,291(2018:Rs.5,122,003)due to related parties which have been disclosed in note 34.

16.1 These include markup/ return/ interest payable for an amount of Rs. 144,130 thousand (2018: Rs. 92,040 thousand) on deposits due with related parties which have been disclosed in note 34. 16.2 These include balance amount of Rs. 5,648 thousand (2018: 8,832 thousand) due with related parties which have been disclosed in note 34.

1,222,648 291,801 (20,251) 175,637

(269,360) 1,400,475

5.21 - - - - - -

16.3 Lease liability on right of use asset:

Lease liability on right of use asset - Initial Recognition under IFRS-16 Additions during the period Deletion during the period Finance cost on lease liability on right of use assets Payment of lease liability on right of use assets Net book value at the end

------------ Rupees '000 ------------2019 2018

16.3.1 These include lease liability of an amount of Rs. 59,225 thousand (2018: Nil), with respect to Habib Bank Limited, a related party.

141


17.3.1 During the year 2017 IFC holding 24,000,000 (8.7%) shares of FMFB had exercised its put option vide notice to AKAM and AKRSP dated December 15, 2017 under the term of Put & Call Option agreement dated June 14, 2002. AKAM exercised the option to acquire entire shares of IFC. AKAM received no objection from Competition Commission of Pakistan (CCP) on July 31, 2019. After obtaining approval and no objection from SBP on August 19 and October 24, 2019 respectively, AKAM applied to Central Depository Company of Pakistan Limited (CDC) for the transfer of shares to its account. The execution was completed on December 9, 2019.

764,768 502,990

2,730,811

2019 (Number)

273,081,115

2018 (Number)

273,081,115

2019(Number)

2,730,811Ordinary shares of Rs. 10 each fully paid in cash

17.2 Issued, subscribed and paid-up capital

17.3

1,379,310 811,500 300,000

- 240,000

1 2,730,811

1,379,310 571,500 300,000 240,000 240,000

1 2,730,811

17.3 The pattern of holding in the issued share capital of FMFB is as follows:

17.3.1

Habib Bank Limited (HBL)Aga Khan Agency for Micro�nance (AKAM)Aga Khan Rural Support Programme (AKRSP)International Finance Corporation (IFC)Japan International Cooperation Agency (JICA)Others

137,931,03581,150,03030,000,000

- 24,000,000

50273,081,115

2019(Number)

137,931,03581,150,03030,000,00024,000,00024,000,000

50273,081,115

------------ Rupees '000 ------------

3,500,000

2019 (Number)

350,000,000

2018 (Number)

350,000,000 3,500,000

2019 201817 SHARE CAPITAL

17.1 Authorized Share Capital

Ordinary shares of Rs. 10 each

Note

18 (DEFICIT) ON REVALUATION OF ASSETS ------------ Rupees '000 ------------2019 2018

Note

7,594,928 325,491 202,719

2,067 396,302

8,521,507

5,474,848 237,289 172,425

- 162,614

6,047,176

(633) (1,407)9Available-for-sale investments: Government securities

19.1 Contingencies:There are no known material contingencies as at December 31, 2019 (2018: Nil).

19.2 Commitments:

There are no known material commitments as at December 31, 2019 (2018: Nil).

20 MARKUP/RETURN/INTEREST EARNED

Markup on advancesIncome on investment in Government securitiesIncome from Term Deposit Receipts (TDRs)Mark up on reverse repo transactionsMarkup on deposit accounts with treasury and other banks

3,460,925 2,164 4,646

3,467,735

1,682,653 - -

1,682,653

21 MARKUP/RETURN/INTEREST EXPENSEDDeposits and other accounts Mark up on repo transactions Mark up on Borrowings

FeeCommission

------------ Rupees '000 ------------

758,065 6,703

496,3456,645

2019 201822 FEE, COMMISSION AND BROKERAGE INCOME

142


Gain on disposal of operating �xed assetsRevaluation (loss)/ gain on held for trading investments Others - income

2,116 (220) 1,266 3,162

4,584 27

1,608 6,219

23 OTHER INCOME

27.4

24.111.211.311.416.3

1,624,84547,12359,183

-39,279

200,130108,204

91,05532,34286,77034,70964,01633,786

504,173

200,80528,684

--

115,862129,204

46,809102,255

35,91225,895

1,0593,112,150

24 ADMINISTRATIVE EXPENSES

Salaries, allowances and bene�ts Charge for de�ned bene�t gratuity fund Contribution to de�ned contribution provident fundNon-executives directors' fee, allowances and other expensesTraining and capacity buildingRent, rates and taxesUtilitiesInsuranceLegal and professional chargesCommunicationsRepair and maintenanceStationery and printingAdvertisement and publicityDonationsAuditors' remunerationDepreciation on property and equipmentAmortization of intangible assetsDepreciation on right of use assetsFinance cost of lease liability on right of use assetsTravel and transportationOf�ce securityOf�ce suppliesInformation technology supplies and softwareVeri�cation charges Bank chargesOther expenses

1,988,141 59,381 77,233

- 44,552 6,378

160,795 203,348 30,449

126,699 48,520

103,892 16,562

100 6,954

308,932 39,749

250,707 175,637 158,386 181,443 66,488

123,906 63,871 22,661 2,891

4,267,675

Audit fee Fee for half yearly reviewGroup reporting, Special certi�cations and other assurance services Tax services Out of pocket expenses

------------ Rupees '000 ------------

1,300 350

2,950 1,754

6006,954

1,300 250 423

1,600 600

4,173

2019 201824.1 Auditors' remuneration

Penalties imposed by the State Bank of PakistanWorkers Welfare Fund (WWF)

25 - 25

- - -

25 OTHER CHARGES

143


324,908(156,990)

531-

168,449

499,854(20,986)

32,073(417)

510,52426.1 Reconciliation of tax expense and accounting pro�t

Accounting pro�t before tax Tax at the applicable rate of 29% (2018: 29%)

Tax chargeable at lower ratesIncome subject to FTREffect of super taxBene�t of gross lossPrior yearEducation cessPermanent differencesEffect of change of taxOthers

------------ Rupees '000 ------------26 TAXATION

For the year Current DeferredFor the prior years Current Deferred

701,161

203,337

- (462)

- (33,386)

531 543

7 -

(2,121)168,449

1,510,594

438,072

11 -

31,7254,394

32,073 676

-1,0482,525

510,524

2019 2018

Present value of de�ned bene�t obligation Fair value of plan assets

------------ Rupees '000 ------------

276,995 (288,816) (11,821)

224,543(221,614)

2,929

2019 2018Note

27.527.627.4

Opening net liability Expense for the year Contributions made to the fundActuarial (gain)/ loss (Asset)/ Liability at end of the year

------------ Rupees '000 ------------

2,929 59,381

(59,175) (14,956) (11,821)

16,37547,123

(62,824)2,2552,929

2019 2018Note

27.7

27.4 Movement in the liability recognized in the balance sheet:

27.3 Fair value of plan assets and present value of obligation under the scheme at the balance sheet date were as follows:

Present value of de�ned bene�t obligation at beginning of the year Current service cost Interest cost Past service cost Bene�ts paid Actuarial (gain)/ loss Present value of de�ned bene�t obligation at end of the year

------------ Rupees '000 ------------

224,543 64,794 26,364

675 (24,870) (14,511) 276,995

178,561 48,728 15,975

- (17,087)

(1,634) 224,543

2019 201827.5 Movement in the present value of de�ned bene�t obligation:

144


Changes in PVDBO Increase in discount rate by 1% Decrease in discount rate by 1% Increase in future increment in salary by 1% Decrease in future increment in salary by 1% ncrease in withdrawal rate by 10% Decrease in withdrawal rate by 10% Increase in mortality rate by 10% Decrease in mortality rate by 10%

------------ Rupees '000 ------------

(36,699) 44,871 46,331

(38,383) 170

(176) 209

(211)

(29,079) 35,287 36,504

(30,466) 75

(75) (103) 102

2019 201827.6 Movement in the fair value of plan assets:

The actual return earned on plan assets 32,897 13,691

27.8 Actual return on plan assets:

Bank balancesInvestments

234,697 54,119

288,816

191,609 30,006

221,615

27.9 Plan assets consists of the following assets:

27.10 Sensitivity Analysis

Sensitivity analysis has been performed by varying one assumption keeping all other assumptions constant and calculating the impact on the present value of the de�ned bene�t obligation under the various employee bene�t scheme. The increase/ (decrease) in the present value of de�ned bene�t obligations (PVDBO) as a result of change in each assumption is summarized below :

Fair value of plan assets at beginning of the year Interest income Contributions made to the fund Bene�ts paid Actuarial gain/ (loss) Fair value of plan assets at end of the year

------------ Rupees '000 ------------

221,614 32,452 59,175

(24,870) 445

288,816

162,186 17,580 62,824

(17,087) (3,889)

221,614

2019 201827.6 Movement in the fair value of plan assets:

Note

27.9

Current service cost Interest cost on obligation Interest income on plan assets Past service cost

64,794 26,364

(32,452) 675

59,381

48,72815,975

(17,580)-

47,123

27.7 Amount charged to de�ned bene�t plan in the pro�t and loss account:

Note

24

145


Size of the Fund -Total Assets Cost of investments made Percentage of investments made Fair value of investments Breakup of Investments is as follows: Pakistan Investment Bonds Mutual Funds Term Deposit Receipts Balance with Banks

At beginning of the year Opened during the year Upgraded during the year At end of the year

Un audited 2019

Audited 2018

656,635 643,864

98% 651,317

961 -

184,492 465,864 651,317

901 -

119,430 382,020 502,351

0.1%0%

28%72%

0.2%0%

24%76%

503,012502,020

100%502,351

2019 2018

29.1 All the investments out of provident fund trust have been made in accordance with the provisions of section 218 of the Companies Act, 2017, Employees Contributory Funds (Investment in Listed Securities) Regulations, 2018 and applicable Income Tax Rules.

29 EMPLOYEES PROVIDENT FUND TRUST

30 NUMBER OF BRANCHES/PERMANENT BOOTHS

------------ Rupees '000 ------------

Rupees '000 Rupees '000% %

184 4

11 199

145 17 22

184

2019 2018

27.11 Expected contribution to the plan

Based on actuarial advice, the management estimates that the charge in respect of de�ned bene�t plan for the year ending December 31, 2020 is Rs. 63,842 thousand.

PermanentContractual

PermanentContractual

Total

Total

3,013 39

3,052

2,494 21

2,515

3,013 39

3,052

2,494 21

2,515

3,247 49

3,296

2,727 33

2,760

234 10

244

233 12

245

2,478 3,074

2019

2018

Credit/ sales staff Banking/ support staff Total

28 NUMBER OF EMPLOYEES

28.1 Average number of employees during the year

146


------------ Rupees '000 ------------

Pro�t after taxation - (Rupees in '000') Weighted average number of ordinary shares - (Numbers in '000') Earning per share - (Rupee)

32 EARNING PER SHARE (RUPEE)

33 CASH AND CASH EQUIVALENTS

32.1 There is no dilutive effect on the basic earning per share of FMFB.

532,712 273,081

1.95

1,000,070 273,081

3.66

2019 2018

Cash and Balances with SBP and NBP Balances With Other Banks/NBFIs/MFBs Market Treasury bills (having tenure of three months or less)

2,875,826 3,404,932 2,376,413 8,657,171

2,186,7016,036,9122,458,222

10,681,835

2019Note

78

2018

------------ Rupees '000 ------------

Managerial remuneration Contribution to provident fund Rent and house maintenance Utilities Medical Conveyance Others (Bonus, other incentives etc.) Numbers

31 REMUNERATION OF CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES

14,400 1,440 5,760 1,440 1,440

- 13,500 37,980

1

13,566 1,357 5,427 1,357 1,357

- 10,000 33,064

1

President/ Chief Executive2019 2018

------------ Rupees '000 ------------

297,001 26,335

118,800 29,700 29,700 54,757 77,153

633,446

337

223,912 18,261 84,671 21,168 21,168 45,918 42,177

457,275

232

Executive2019 2018

31.1 In accordance with BSD Circular Number 11 dated December 30, 2003, number of executives includes those who have worked partly or completely during the year and whose basic salary exceeds Rs. 500,000 (2018: Rs. 500,000) per year. 31.2 The President/ Chief Executive Of�cer and certain other executives are also provided with free use of FMFB's owned and maintained cars in accordance with their entitlement as per policy of FMFB. 31.3 Charge for de�ned bene�t gratuity fund is based on actuarial valuations conducted by an independent actuary, annually using projected unit credit method as disclosed in note 27 to the �nancial statements. 31.4 No remuneration was paid to the directors of FMFB.

147


34 RELATED PARTY TRANSACTIONS

Related parties of FMFB comprise of its major shareholders, associates (including entities having directors in common with FMFB), directors, key management personnel which include CEO and Head of Departments (HOD's) and staff retirement funds. Transactions with the related parties, other than those under terms of employment, are executed on an arm's length basis i.e. do not involve more than normal risk and are substantially on the same terms, including markup rates and collateral, as those prevailing at the time for comparable transactions with unrelated parties. Details of transactions and balances with related parties as at the year end, other than disclosed elsewhere in these �nancial statements, are as follows:

Balance sheet Balances with other Banks/NBFIs/MFBs on deposit accounts Advances Opening balance Addition during the year Repaid during the year Markup/ Return/ Interest earned

Closing balance Operating �xed assets

Capital Work in progress Right of use assets Other assets Income/ Markup accrued Prepayments Other receivable Receivable from de�ned bene�t gratuity fund Deposits Opening balance Received during the year Withdrawn during the year Markup/ Return/ Interest expensed Closing balance Other liabilities Markup/ Return/ Interest payable Accrued liabilities Lease liability on right of use assets

Payable to de�ned bene�t gratuity fund Payable to de�ned contribution provident fund

420,216

- - - -

-

- 109,969 109,969

1,006 -

29 -

1,035

3,012,556 7,415,415 7,599,993

335,608 3,163,586

102,857 2,580

59,225

-

- 164,662

-

- - - -

-

10,214 -

10,214

- -

922 -

922

2,104,062 19,248,856 19,399,533

233,085 2,186,470

41,2733,068

-

-

- 44,341

-

37,774 10,246 11,929

1,771

37,862

- - -

62 - - -

62

5,385 9,679

14,936 107 235

- - -

-

- -

-

- - - -

-

- - -

- - -

11,821 11,821

- - - - -

- - -

-

- -

As at December 31, 2019

Shareholders Group entities/commondirectorship

Key ManagementPersonnel


------------ Rupees '000 ------------

148


Pro�t and loss accountIncomeMarkup/ Return/ Interest earned ExpenseMarkup/ Return/ Interest expensed Administration expenses Remuneration Charge for de�ned contribution gratuity fund Contribution to de�ned contribution provident fund Depreciation on right of use assets Finance cost of lease liability on right of use assets Of�ces' rentals expense Bank charges Vehicle rentals expense Insurance expense Other expenses Closing balance Others Proceeds from sale of vehicles

Balance sheetBalances with other Banks/NBFIs/MFBson deposit accounts

AdvancesOpening balanceAddition during the yearRepaid during the yearMarkup/ Return/ Interest earnedClosing balance

Operating �xed assetsCapital Work in progress

Other assetsIncome/ Markup accruedPrepaymentOther receivable

DepositsOpening balanceReceived during the yearWithdrawn during the year Markup/ Return/ Interest expensed Closing balance

34,804

335,608

- -

-34,935

4,100-

5,9371,588

-134

382,302

-

610,630

-----

-

1,04320,637

-21,680

1,042,3166,584,4964,750,182

135,9263,012,556

-

- -

59,38177,233

-------

136,614

-

-

---- -

-

----

-----

1,771

107

158,070 -

--------

158,177

-

-

9,35633,567

6,4801,331

37,774

-

----

60036,72032,022

875,385

561

233,085

- -

------

61,6654,063

298,813

-

-

- - - - -

7,000

--

3,4693,469

806,715 11,215,953 10,003,106

84,500 2,104,062





------------ Rupees '000 ------------

149


Other liabilitiesMarkup/ Return/ Interest payableAccrued liabilitiesPayable to de�ned bene�t gratuity fund Payable to de�ned contribution provident fund

Pro�t and loss account

IncomeMarkup/ Return/ Interest earned

Expense Markup/ Return/ Interest expensed Administration expenses Remuneration Charge for de�ned contribution gratuity fund Contribution to de�ned contribution provident fund Of�ces' rentals expense Bank charges Vehicle rentals expense Insurance expense Other expenses Others Proceeds from sale of vehicles

51,7972,636

--

54,433

18,879

135,926---

28,1424,9211,588

-1,091

171,668

-

--

2,929-

2,929

-

--

47,12359,183

-----

106,306

-

-----

1,331

87129,456

-------

129,543

-

40,2436,196

--

46,439

-

84,500------

50,5625,427

140,489

-





------------ Rupees '000 ------------

150


35 FINANCIAL INSTRUM

ENTS (based on contractual obligation)

"Effective yield/interest rate"

Up to one yearO

ver �ve yearsSub total

TotalNon interest/ m

ark-up bearing

%------------ Rupees '000 ------------

Interest/ mark-up bearing

Up to one yearO

ne to �ve yearsO

ver �ve yearsSub total

------------ Rupees '000 ------------

Financial assetsCash and Balances w

ith SBP and NBP8.25

451,515

- -

451,515

2,424,311-

2,424,311

2,875,826

Balances With O

ther Banks/NBFIs/MFBs

11.40 - 14.253,327,371

- -

3,327,371 77,561

-

77,561 3,404,932

Investments

11.65 - 15.504,512,898

- -

4,512,898

- -

4,512,898

Advances5.5 - 38.4

22,631,1077,830,392

474,768 30,936,267

-

- 30,936,267

Other Assets

--

-

-

2,209,92523,114

2,233,039

2,233,039

30,922,8917,830,392

474,768

39,228,0514,711,797

23,1144,734,911

43,962,962

Financial liabilitiesDeposits and other accounts

7.3 - 14.227,526,881

7,148,715 196,731

34,872,327 3,531,316

- 3,531,316

38,403,643

Borrowings

-

-

- -

-

-

-

-

Other Liabilities

2,641

372,595

1,025,239 1,400,475

924,415

403,735

1,328,150 2,728,625

27,529,5227,521,310

1,221,97036,272,802

4,455,731403,735

4,859,46641,132,268

December 31, 2018

Financial assetsCash and Balances w

ith SBP and NBP3.0

355,293

- -

355,293

1,831,408

- 1,831,408

2,186,701

Balances With O

ther Banks/NBFIs/MFBs

3.75 - 11.05,923,074

- -

5,923,074

113,838

- 113,838

6,036,912

Investments

7.0 - 10.312,807,140

- -

2,807,140

-

2,807,140

Advances5.5 - 35.9

17,994,746

5,130,313

429,385

23,554,444

-

23,554,444

Other Assets

-

-

-

-

1,520,04113,730

1,533,7711,533,771

27,080,253

5,130,313

429,385

32,639,9513,465,287

13,730

3,479,017

36,118,968

Financial liabilitiesDeposits and other accounts

7.0 - 11.022,574,934

5,178,373 -

27,753,307

3,375,770 -

3,375,77031,129,077

Borrowings

- -

- -

- -

- -

Other Liabilities

- -

- -

699,444 272,799

972,243 972,243

22,574,934

5,178,373

- 27,753,307

4,075,214272,799

4,348,013

32,101,320

151


35.1 CONCENTRATION OF CREDIT RISK

Credit risk is the risk that one party to a �nancial instrument will fail to discharge an obligation and cause the other party to incur a �nancial loss. FMFB's credit risk is primarily attributable to its advances, lending to �nancial institutions and balances at banks. The credit risk on liquid funds is limited because the counter parties are banks with reasonably high credit ratings. FMFB has an effective loan disbursement and recovery monitoring system which allows it to evaluate borrowers credit worthiness and identify potential problem loans. A provision for potential loan losses is maintained as required by the Prudential Regulations issued by SBP. Maximum amount of �nancial assets which are subject to credit risk amount to Rs. 37,931,604 thousand (2018: Rs. 30,885,024 thousand). 35.2 LIQUIDITY RISK Liquidity risk is the risk that FMFB will encounter dif�culty in raising funds to meet its net funding requirements. FMFB attempts to manage this risk by having adequate credit lines in place and maintaining suf�cient liquidity at branch level to meet anticipated funding requirements. 35.3 INTEREST RATE RISK Interest rate risk is the risk that the value of a �nancial instrument will �uctuate as a result of changes in market interest rate. FMFB's interest rate exposure stems mainly from investing activities. This risk is managed by regular review of held-for-trading portfolio of government securities. 35.4 FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: • In the principal market for the asset or liability; or • In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by FMFB. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-�nancial asset takes into account a market participant's ability to generate economic bene�ts by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. FMFB uses valuation techniques that are appropriate in the circumstances and for which suf�cient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. Fair value of available for sale and held for trading investments has been calculated based on market yields obtained from Mutual Funds Association of Pakistan (MUFAP) at year end. These investments are categorized in Level 2 category as per IFRS 13.

The carrying values of all �nancial assets and liabilities re�ected in the �nancial statements approximate their fair value except for Held to Maturity investments which are recorded at amortized cost. 35.5 CAPITAL MANAGEMENT The paid-up capital of FMFB is Rs. 2,730,811 thousand (2018: Rs. 2,730,811 thousand) which meets minimum paid-up capital (free of losses) requirement of Rs. 1,000,000 thousand (2018: Rs. 1,000,000 thousand) as speci�ed in the Micro�nance Institutions Ordinance, 2001. The Bank has Capital Adequacy Ratio (CAR) of 15.8% (2018: 19.8%) of its risk-weighted assets which is in compliance with the requirements of Prudential Regulations to maintain CAR of 15% of risk-weighted assets.

152


December 31, 2019

Assets

Interest/ markup earning

Cash and Balances with SBP and NBP Balances With Other Banks/NBFIs/MFBs Lending to �nancial institutions Investments Advances Non-Interest/ markup earning Cash and Balances with SBP and NBP Balances With Other Banks/NBFIs/MFBs Other Assets Deferred Tax Operating Fixed Assets

Liabilities Interest/ markup bearing

Large time deposits above Rs. 100,000 Deposits and other accounts Borrowings Non-Interest/ markup bearing Deposits and other accounts Other Liabilities Net assets Represented by:Share Capital Share premium Reserves Unappropriated pro�t (De�cit) on revaluation of assets Deferred grant

36 SCHEDULE OF MATURITY DISTRIBUTION OF MARKET RATE ASSETS AND LIABILITIES

Total (Rupees '000)

Up to one month

(Rupees '000)

451,515

3,327,371

- 4,512,898

30,936,267

2,424,311

77,561 2,462,334

220,110 2,819,654

47,232,021

19,298,035

15,574,292 -

3,531,316

2,780,946 41,184,589

6,047,712

2,730,811 620,690 824,003

1,872,561 (633)

- 6,047,432

4,533,598

15,181,327 -

3,531,316

680,56223,926,803

(12,707,998)

4,923,917

60,728 -

-

161,541 5,146,186

7,673,695

2,747,782

79,529 -

-

137,274 2,964,585

9,085,427

7,092,738

252,708 -

-

1,801,5699,147,015

1,996,308

451,515

3,327,371

- 1,893,435 2,486,011

2,424,311

77,561 558,601

- -

11,218,805

-

-

- 1,998,766 9,576,395

- -

1,240,852 -

3,868

12,819,881

- -

- 620, 697

10,568,701

- -

639,767220,110

737

12,050,012

- -

- -

8,305,160

-

- 23,114

- 2,815,049

11,143,323

Over six monthsup to one year(Rupees '000)

Over One monthsup to one year(Rupees '000)

Overone year

(Rupees '000)

153


December 31, 2018

Assets

Interest/ markup earning

Cash and Balances with SBP and NBP Balances With Other Banks/NBFIs/MFBs Lending to �nancial institutions Investments Advances Non-Interest/ markup earning Cash and Balances with SBP and NBP Balances With Other Banks/NBFIs/MFBs Other Assets Deferred Tax Operating Fixed Assets

Liabilities Interest/ markup bearing

Large time deposits above Rs. 100,000 Deposits and other accounts Borrowings Non-Interest/ markup bearing Deposits and other accounts Other Liabilities Net assets Represented by:Share Capital Share premium Reserves Unappropriated pro�t (De�cit) on revaluation of assets Deferred grant

Total (Rupees '000)

Up to one month

(Rupees '000)

355,293

5,923,074 -

2,807,140 23,554,444

1,831,408

113,838 1,789,379

63,120 1,187,584

37,625,280

18,128,802

9,624,505 -

3,375,770

992,876 32,121,953

5,503,327

2,730,811 620,690 675,629

1,477,604 (1,407)

- 5,503,327

4,291,679

9,166,598 -

3,375,770

427,16217,261,209

(5,739,018)

5,480,981

45,441 -

-

200,232 5,726,654

2,993,106

3,555,514

34,721 -

-

92,683 3,382,918

6,939,399

4,800,628

377,745 -

-

272,7995,451,172

1,309,830

355,293

5,923,074

- 2,118,826

766,252

1,831,408

113, 838413,700

- -

11,522,191

-

-

- 680,729

7,212,054

- -

826,977 - -

8,719,760

- -

- 7,585

10,016,640

- -

534,97263,120

-

10,622,317

- -

- -

5,559,698

- -

13,730 -

1,187,584

6,761,012

Over six monthsup to one year(Rupees '000)

Over One monthsup to one year(Rupees '000)

Overone year

(Rupees '000)

154


Pro�t before taxation comprises of: Operational pro�t Grant income

37 OPERATIONAL/NON-OPERATIONAL PROFIT

2019 2018

Note ------------ Rupees '000 ------------

701,161

-

701,161

1,510,594

-

1,510,594


38 CORRESPONDING FIGURES

Corresponding �gures have been re-arranged and re-classi�ed, where necessary, for more appropriate presentation.

39 GENERAL

Figures have been rounded off to the nearest thousand rupee unless otherwise stated.

40 DATE OF AUTHORIZATION FOR ISSUE

These �nancial statements were authorized for issue by the Board of Directors of the FMFB in their meeting held on March 11, 2020.

155


ANNEXURE

Details of property and equipment disposed off during the year as referred to Note 11.2.3 of �nancial statements:

PARTICULARS OF ASSETS

Motor vehicles

Auto Rickshaw

Suzuki Cultus

Toyota Corolla

Toyota Corolla

Sub-Total

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

265,000

616,715

1,389,000

1,426,000

3,696,715

30,787

616,714

1,388,999

1,425,999

3,462,499

234,213

1

1

1

234,216

170,000

280,000

1,086,000

1,265,000

2,801,000

(64,213)

279,999

1,085,999

1,264,999

2,566,784

Auction

Auction

Auction

Auction

Ali Traders

Munira Almas

M Huzaifa Khan

M Huzaifa Khan

Cost Depreciation BookValue

SaleProceed

Gain/Loss Mode of Disposal

Particularsof Buyers

OFFICE EQUIPMENTS

Air Conditioner

Stabilizer

Stabilizer

Fax Machine

Water Dispenser

Air Conditioner

Water Dispenser

Water Dispenser

Water Dispenser

Water Dispenser

Water Dispenser

Water Dispenser

Water Dispenser

Microwave Oven

Water Dispenser

Fax Machine

Fax Machine

Fax Machine

Fax Machine

Fax Machine

Water Dispenser

Fax Machine

Water Dispenser

Fax Machine

Fax Machine

Fax Machine

Stabilizer

Stabilizer

Fax Machine

Microwave Oven

Stabilizer

UPS

Refrigerator

Water Dispenser

Fax Machine

Stabilizer

Stabilizer

1

1

1

1

1

1

5,600

7,000

7,300

7,400

7,400

7,500

7,500

7,500

7,800

8,000

8,000

8,000

8,000

8,000

8,000

8,000

8,000

8,000

8,000

8,000

9,400

9,400

9,800

10,000

10,000

10,500

10,600

11,800

12,000

12,382

12,825

-

-

-

-

-

-

5,599

6,999

7,299

7,399

7,399

7,499

7,499

7,499

7,799

7,999

7,999

7,999

7,999

7,999

7,999

7,999

7,999

7,999

7,999

7,999

9,399

9,399

9,799

9,999

9,999

10,499

10,599

11,799

11,999

12,381

12,824

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

3,500

800

800

1,200

500

3,600

300

800

1,500

454

800

500

800

1,000

2,550

100

100

2,500

600

100

500

500

500

400

5,000

200

2,000

4,000

200

500

1,500

1,000

1,500

800

300

200

3,000

3,499

799

799

1,199

499

3,599

299

799

1,499

453

799

499

799

999

2,549

99

99

2,499

599

99

499

499

499

399

4,999

199

1,999

3,999

199

499

1,499

999

1,499

799

299

199

2,999

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

A2Z Enterprise

A2Z Enterprise

A2Z Enterprise

Syed Muhammad Aslam Chinari

Kamran Iscrap Work

A2Z Enterprise

Abdullah Nilam Ghar & Furniture

A2Z Enterprise

Shair Ali

Allah Bux Khaskhali

Salman Scrap Works

Shaheen Enterprise

Salman Scrap Works

Koksuai Computers

Ittefaq Old Scrap Dealer



Shair Ali

Malik Shoukat Kabaria


Shaheen Enterprise

Shaheen Enterprise


Shaheen Enterprises

Babu And Bros

Mumtaz Kabaria

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

A2Z Enterprise

Shaheen Enterprise

A2Z Enterprises

Koksuai Computers

A2Z Enterprise

Salman Scrap Works

M Azad Traders


156


Stabilizer

Stabilizer

Stabilizer

Stabilizer

Stabilizer

Stabilizer

Stabilizer

Stabilizer

Stabilizer

Stabilizer

Stabilizer

Fax Machine

Fax Machine

Air Conditioner

Stabilizer

Fax Machine

Fax Machine

CCTV System

Fax Machine

UPS

UPS

UPS

UPS

Stabilizer

Access Control System

Access Control System

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Stabilizer

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Note Binding Machine

Alarm System

Cash Counting Machine

Cash Counting Machine

UPS

Alarm System

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

12,825

12,825

12,825

12,825

12,825

12,825

12,825

12,825

12,825

12,825

12,825

12,870

12,870

12,900

13,000

13,090

13,480

16,400

17,000

17,550

17,550

18,000

18,000

18,000

20,428

20,428

20,500

20,500

20,500

20,500

20,500

21,000

21,000

21,000

21,000

21,000

21,000

21,000

21,000

21,500

21,500

21,500

21,500

21,500

21,500

21,500

21,500

22,000

22,900

22,900

23,000

23,900

25,000

25,500

25,500

25,500

25,500

12,824

12,824

12,824

12,824

12,824

12,824

12,824

12,824

12,824

12,824

12,824

5,899

12,869

12,899

12,999

13,089

13,479

11,275

16,999

17,549

17,549

16,500

17,999

17,999

20,427

20,427

20,499

20,499

20,499

20,499

20,499

20,999

20,999

20,999

20,999

20,999

20,999

20,999

20,999

7,615

21,499

21,499

21,499

21,499

21,499

21,499

21,499

21,999

15,744

20,992

22,999

23,899

24,999

25,499

25,499

25,499

25,499

1

1

1

1

1

1

1

1

1

1

1

6,971

1

1

1

1

1

5,125

1

1

1

1,500

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

13,885

1

1

1

1

1

1

1

1

7,156

1,908

1

1

1

1

1

1

1

3,000

1,000

600

1,500

1,500

200

200

200

200

2,000

500

100

800

4,000

900

300

719

200

400

1,000

1,000

6,000

5,000

350

200

3,000

3,500

3,500

1,550

3,000

5,500

2,500

2,500

4,000

4,000

4,000

1,500

3,000

3,000

4,000

4,000

4,000

4,000

2,000

2,000

5,500

18,750

200

10,019

1,000

900

750

400

1,550

3,000

5,000

4,000

2,999

999

599

1,499

1,499

199

199

199

199

1,999

499

(6,871)

799

3,999

899

299

718

(4,925)

399

999

999

4,500

4,999

349

199

2,999

3,499

3,499

1,549

2,999

5,499

2,499

2,499

3,999

3,999

3,999

1,499

2,999

2,999

(9,885)

3,999

3,999

3,999

1,999

1,999

5,499

18,749

199

2,863

(908)

899

749

399

1,549

2,999

4,999

3,999

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Insurance

Auction

Insurance

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction


Shair Ali


Shaheen Enterprise


Rati Coal Center

Rati Coal Center

Rati Coal Center

Rati Coal Center

Babu And Bros

Mumtaz Kabaria


Attiqu Scarp

Shaheen Enterprises

Salman Scrap Works

Salman Scrap Works

Hair ur Rehman

Muhammad Ashraf Rehmani Kabaria

A2Z Enterprises






Shaheen Enterprise

Shaheen Enterprise

A2Z Enterprise

A2Z Enterprise


A2Z Enterprises

Taj Traders

Shair Ali

Shair Ali

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Zaqi Autos Lubricants

Iqbal Bhatti Kabaria


Techno Cool

Techno Cool

Techno Cool


Kamran Iscrap Work

Kamran Iscrap Work


Jubilee Inusrance


Jubilee Inusrance

Mumtaz Kabaria

Shaheen Enterprise

Dosti Electric Store

Koksuai Computers


A2Z Enterprises

Shaheen Enterprises

Shaheen Enterprises

157


Stabilizer

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Of�ce Security System

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

UPS

UPS

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Cameras

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Stabilizer

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

26,760

27,500

27,500

27,500

27,500

27,500

27,500

29,425

29,500

29,500

29,500

29,500

30,000

30,000

30,400

30,400

30,500

30,500

30,500

30,500

30,500

30,500

30,500

30,500

30,500

30,500

31,000

31,000

31,000

31,000

31,000

32,999

33,500

33,500

34,500

34,500

34,500

34,500

35,000

35,000

36,250

37,500

37,500

37,500

37,500

37,500

37,500

37,600

37,600

37,600

41,226

41,600

41,600

41,600

41,600

41,600

7,805

27,499

27,499

27,499

27,499

27,499

27,499

29,424

29,499

29,499

29,499

29,499

29,999

29,999

30,399

30,399

30,499

30,499

30,499

30,499

30,499

30,499

30,499

30,499

30,499

30,499

30,999

30,999

30,999

30,999

30,999

32,998

33,499

33,499

34,499

34,499

34,499

34,499

34,999

34,999

29,453

37,499

37,499

37,499

37,499

37,499

37,499

37,599

37,599

37,599

41,225

41,599

41,599

41,599

41,599

41,599

18,955

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

6,797

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

2,500

3,000

454

3,000

3,000

4,000

4,000

200

454

5,000

5,000

3,500

9,000

1,601

2,500

2,500

4,000

4,000

3,500

2,500

2,500

5,500

5,500

5,000

2,000

2,000

5,000

4,000

4,000

3,000

3,000

5,500

3,500

4,500

3,000

5,000

5,000

5,000

3,000

3,000

500

3,500

3,500

8,000

8,000

4,000

400

1,500

5,000

5,000

200

5,000

12,000

12,000

5,500

4,000

(16,455)

2,999

453

2,999

2,999

3,999

3,999

199

453

4,999

4,999

3,499

8,999

1,600

2,499

2,499

3,999

3,999

3,499

2,499

2,499

5,499

5,499

4,999

1,999

1,999

4,999

3,999

3,999

2,999

2,999

5,499

3,499

4,499

2,999

4,999

4,999

4,999

2,999

2,999

(6,297)

3,499

3,499

7,999

7,999

3,999

399

1,499

4,999

4,999

199

4,999

11,999

11,999

5,499

3,999

Auction

Auction

Auction

Auction

Auction

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Auction

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Auction

Shaheen Enterprise


Allah Bux Khaskhali

Salman Scrap Works

Salman Scrap Works

Mumtaz Kabaria

Mumtaz Kabaria

Babu And Bros

Allah Bux Khaskhali

Shaheen Enterprise

Shaheen Enterprise

A2Z Enterprises

Zaqi Autos Lubricants

Hair ur Rehman

Shair Ali

Shair Ali

Techno Cool

Techno Cool

A2Z Enterprise

Kamran Iscrap Work

Kamran Iscrap Work



Shaheen Enterprises

Babu And Bros

Babu And Bros

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise



Taj Traders

A2Z Enterprise

A2Z Enterprises

A2Z Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Salman Scrap Works

Salman Scrap Works

Babu And Bros



Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Kamran Iscrap Work

Shaheen Enterprises

Shaheen Enterprises

Rati Coal Center

Shaheen Enterprise

Rizwan

Rizwan

Taj Traders

Rati Coal Center

158


Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

UPS

Air Conditioner

UPS

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

Air Conditioner

UPS

UPS

Alarm System

UPS

Alarm System

Generator

Air Conditioner

Air Conditioner

Alarm System

UPS

Air Conditioner

Air Conditioner

CCTV System

CCTV System

CCTV System

Generator

UPS

Generator

CCTV System

Air Conditioner

CCTV System

Air Conditioner

UPS

Alarm System

CCTV System

CCTV System

CCTV System

CCTV System

Generator

Generator

Generator

Generator

Generator

Generator

Generator

Generator

Paper Copier

Paper Copier

41,600

41,600

41,600

41,600

41,600

41,600

41,600

43,000

43,600

44,900

45,000

45,500

45,596

46,000

46,540

46,540

46,540

46,540

46,632

47,000

47,225

49,000

49,604

50,000

50,000

51,000

51,749

52,500

53,500

53,500

53,500

53,500

53,500

57,000

58,166

59,000

60,000

61,000

64,470

66,130

67,667

72,795

72,941

72,941

72,941

72,941

75,000

75,000

75,000

75,000

75,000

75,000

75,000

75,000

77,500

77,500

41,599

41,599

41,599

41,599

41,599

41,599

41,599

42,999

20,892

7,483

44,999

45,499

45,595

45,999

31,996

39,753

39,753

41,692

46,631

46,999

47,224

48,999

49,603

49,999

49,999

50,999

51,748

52,499

53,499

53,499

53,499

53,499

53,499

56,999

58,165

58,999

59,999

60,999

57,754

37,198

67,666

72,794

69,902

72,940

72,940

72,940

74,999

74,999

74,999

74,999

74,999

74,999

74,999

74,999

77,499

77,499

1

1

1

1

1

1

1

1

22,708

37,417

1

1

1

1

14,544

6,787

6,787

4,848

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

6,716

28,932

1

1

3,039

1

1

1

1

1

1

1

1

1

1

1

1

1

4,000

4,000

2,400

4,000

2,400

2,400

2,400

5,500

2,400

43,000

2,401

1,550

2,433

5,000

5,000

5,000

5,000

1,500

1,000

3,000

100

9,000

100

5,000

5,500

3,000

500

2,600

3,000

5,000

2,500

5,000

200

2,200

1,200

10,000

100

4,000

1,600

3,000

1,100

750

100

2,500

350

200

10,000

16,000

10,000

3,500

5,000

10,000

10,000

10,000

4,135

4,135

3,999

3,999

2,399

3,999

2,399

2,399

2,399

5,499

(20,308)

5,583

2,400

1,549

2,432

4,999

(9,544)

(1,787)

(1,787)

(3,348)

999

2,999

99

8,999

99

4,999

5,499

2,999

499

2,599

2,999

4,999

2,499

4,999

199

2,199

1,199

9,999

99

3,999

(5,116)

(25,932)

1,099

749

(2,939)

2,499

349

199

9,999

15,999

9,999

3,499

4,999

9,999

9,999

9,999

4,134

4,134

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Insurance

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Rati Coal Center

Rati Coal Center

Babu And Bros

Mumtaz Kabaria

Babu And Bros

Babu And Bros

Babu And Bros

Taj Traders

Babu And Bros

Jubilee Inusrance

Hair ur Rehman


Hair ur Rehman

Shaheen Enterprise

Shaheen Enterprise

Rati Coal Center

Rati Coal Center

Babu And Bros


Shaheen Enterprises


Nisan Cables

Babu And Bros


Taj Traders

Salman Scrap Works

Shaheen Enterprise




Shair Ali

Shaheen Enterprise

Mumtaz Kabaria


Babu And Bros

Nisan Cables


Shaheen Enterprise



Salman Scrap Works



Shair Ali


Mumtaz Kabaria



Shair Ali

Shaheen Enterprise

A2Z Enterprises

A2Z Enterprises


Shaheen Enterprises

Hair ur Rehman

Hair ur Rehman

159


CCTV System

Paper Copier

Paper Copier

Digital Copier

CCTV System

Generator

Generator

CCTV System

Air Conditioner

UPS

UPS

Central Heating System

Air Conditioner

Central Heating System

UPS

UPS

UPS

UPS

UPS

Generator

Air Conditioner

UPS

Central Heating & Cooling System

Generator

Central Heating & Cooling System

Generator

Generator

Xerox

Generator

Generator

Sub-Total

78,880

80,000

80,000

80,000

80,250

88,000

89,000

89,000

90,250

95,000

95,000

100,000

100,000

100,000

105,000

105,000

105,000

110,000

139,080

163,000

172,500

185,000

201,800

215,000

240,200

250,000

250,000

348,000

360,000

425,000

10,963,107

78,879

79,999

79,999

79,999

80,249

87,999

88,999

88,999

90,249

94,999

94,999

99,999

99,999

99,999

104,999

104,999

104,999

109,999

57,155

162,999

172,499

184,999

201,799

214,999

240,199

249,999

249,999

347,999

352,500

424,999

10,679,391

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

81,925

1

1

1

1

1

1

1

1

1

7,500

1

283,716

350

2,000

1,500

4,500

2,000

5,000

5,000

200

5,000

4,000

4,000

1,100

13,500

5,336

3,000

1,000

2,000

1,000

10,000

30,000

9,000

4,000

10,768

16,000

12,816

9,000

11,000

5,000

23,000

30,000

896,725

349

1,999

1,499

4,499

1,999

4,999

4,999

199

4,999

3,999

3,999

1,099

13,499

5,335

2,999

999

1,999

999

(71,925)

29,999

8,999

3,999

10,767

15,999

12,815

8,999

10,999

4,999

15,500

29,999

613,009

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction


A2Z Enterprise

Salman Scrap Works


Shaheen Enterprise

A2Z Enterprises

M Azad Traders

Babu And Bros

Shaheen Enterprise

Shair Ali

Shaheen Enterprise


Rizwan

Hair ur Rehman


M Azad Traders

Shaheen Enterprises


Shaheen Enterprise


Shaheen Enterprises

A2Z Enterprises

Hair ur Rehman

Mumtaz Kabaria

Hair ur Rehman


Shaheen Enterprises

Koksuai Computers

Babu And Bros

Anwar Electric Store

Furniture and Fixtures

Executive Chair

Executive Chair

Revolving Chair

Three Seater Sofa

Fire Resistant Cabinet


Meeting Table

Conference Chair

Executive Chair

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Wooden File Cabinet

Visitor Chair

Single Seater Sofa

Visitor Chair

Revolving Chair

Visitor Chair

Visitor Chair

Visitor Chair

Conference Chair

Conference Chair

1

1

1

1

1

1

2

3

4

4

4

4

6

8

9

10

12

18

280

280

1,300

1,300

-

-

-

-

-

-

1

2

3

3

3

3

5

6

5

7

11

14

279

279

1,299

1,299

1

1

1

1

1

1

1

1

1

1

1

1

1

2

4

3

1

4

1

1

1

1

2,500

2,000

300

1,500

2,750

2,750

12,000

2

8,000

1,816

1,500

2,400

500

10,400

7,000

13,000

6

8,196

100

100

500

500

2,499

1,999

299

1,499

2,749

2,749

11,999

1

7,999

1,815

1,499

2,399

499

10,398

6,996

12,997

5

8,192

99

99

499

499

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

National Traders

National Traders

A2Z Enterprises

Fakhar Din Scrap

Babu And Bros

Babu And Bros

National Traders

Hair ur Rehman

National Traders

Allah Bux Khaskhali

Rizwan

Babu And Bros

Babu And Bros

National Traders

Shair Ali

National Traders

Hair ur Rehman

Allah Bux Khaskhali



Shair Ali

Shair Ali

160


Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chairs

Conference Chairs

Conference Chairs

Conference Chairs

Conference Chairs

Conference Chairs

Conference Chairs

Conference Chairs

Conference Chairs

Conference Chairs

Conference Chairs

Conference Chairs

Conference Chairs

Conference Chairs

Conference Chairs

Conference Chairs

Conference Chairs

Conference Chairs

Conference Chairs

Conference Chairs

Conference Chairs

Conference Chairs

Conference Chairs

Conference Chairs

Conference Chairs

Visitor Chair

Visitor Chair

Visitor Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,439

1,439

1,439

1,439

1,439

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,438

1,438

1,438

1,438

1,438

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

500

500

500

500

500

500

500

300

300

300

300

300

300

300

300

300

300

300

150

150

150

150

150

400

850

69

69

69

69

69

69

69

69

69

69

69

69

69

69

69

69

69

69

69

69

69

69

69

69

69

69

298

298

298

298

298

499

499

499

499

499

499

499

299

299

299

299

299

299

299

299

299

299

299

149

149

149

149

149

399

849

68

68

68

68

68

68

68

68

68

68

68

68

68

68

68

68

68

68

68

68

68

68

68

68

68

68

297

297

297

297

297

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Shair Ali

Shair Ali

Shair Ali

Shair Ali

Shair Ali

Shair Ali

Shair Ali

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Fakhar Din Scrap

Taj Traders

Hair ur Rehman

Hair ur Rehman

Hair ur Rehman

Hair ur Rehman

Hair ur Rehman

Hair ur Rehman

Hair ur Rehman

Hair ur Rehman

Hair ur Rehman

Hair ur Rehman

Hair ur Rehman

Hair ur Rehman

Hair ur Rehman

Hair ur Rehman

Hair ur Rehman

Hair ur Rehman

Hair ur Rehman

Hair ur Rehman

Hair ur Rehman

Hair ur Rehman

Hair ur Rehman

Hair ur Rehman

Hair ur Rehman

Hair ur Rehman

Hair ur Rehman

Hair ur Rehman

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

161


Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Visitor Chair

Visitor Chair

Visitor Chair

Visitor Chair

Visitor Chair

Visitor Chair

Visitor Chair

Visitor Chair

Visitor Chair

Visitor Chair

Table With Rack

Table With Rack

Client Chairs

Client Chairs

Client Chairs

Client Chairs

Client Chairs

Client Chairs

Client Chairs

Client Chairs

Client Chairs

Client Chairs

1,439

1,439

1,439

1,439

1,439

1,439

1,439

1,439

1,439

1,439

1,439

1,439

1,439

1,439

1,439

1,448

1,448

1,448

1,448

1,448

1,448

1,448

1,448

1,448

1,448

1,448

1,448

1,448

1,448

1,448

1,448

1,448

1,448

1,448

1,448

1,500

1,500

1,500

1,500

1,500

1,500

1,500

1,500

1,500

1,500

1,500

1,500

1,500

1,500

1,500

1,500

1,500

1,500

1,500

1,500

1,500

1,500

1,438

1,438

1,438

1,438

1,438

1,438

1,438

1,438

1,438

1,438

1,438

1,438

1,438

1,438

1,438

1,447

1,447

1,447

1,447

1,447

1,447

1,447

1,447

1,447

1,447

1,447

1,447

1,447

1,447

1,447

1,447

1,447

1,447

1,447

1,447

1,499

1,499

1,499

1,499

1,499

1,499

1,499

1,499

1,499

1,499

1,499

1,499

1,499

1,499

1,499

1,499

1,499

1,499

1,499

1,499

1,499

1,499

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

298

298

298

298

298

298

298

298

298

298

298

298

298

298

298

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

325

325

325

325

510

510

250

250

250

250

150

200

1,000

1,000

1,000

1,000

1,000

1,000

1,000

1,000

1,000

1,000

297

297

297

297

297

297

297

297

297

297

297

297

297

297

297

49

49

49

49

49

49

49

49

49

49

49

49

49

49

49

49

49

49

49

49

324

324

324

324

509

509

249

249

249

249

149

199

999

999

999

999

999

999

999

999

999

999

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Kamran Iscrap Work

Kamran Iscrap Work

Kamran Iscrap Work

Kamran Iscrap Work

Kamran Iscrap Work

Kamran Iscrap Work

Kamran Iscrap Work

Kamran Iscrap Work

Kamran Iscrap Work

Kamran Iscrap Work

Kamran Iscrap Work

Kamran Iscrap Work

Kamran Iscrap Work

Kamran Iscrap Work

Kamran Iscrap Work

Kamran Iscrap Work

Kamran Iscrap Work

Kamran Iscrap Work

Kamran Iscrap Work

Kamran Iscrap Work







A2Z Enterprises

A2Z Enterprises

A2Z Enterprises

A2Z Enterprises

M Azad Traders

M Azad Traders

Babu And Bros

Babu And Bros

Babu And Bros

Babu And Bros

Babu And Bros

Babu And Bros

Babu And Bros

Babu And Bros

Babu And Bros

Babu And Bros

162


Visitor Chair

Visitor Chair

Visitor Chair

Visitor Chair

Teak Board

White Board

Soft Board

Soft Board

Meeting Chair

Meeting Chair

Meeting Chair

Meeting Chair

Meeting Chair

Meeting Chair

Meeting Chair

Meeting Chair

Meeting Chair

Meeting Chair

Hanging Unit

Hanging Unit

Hanging Unit

Hanging Unit

Hanging Unit

Hanging Unit

Hanging Unit

Hanging Unit

Hanging Unit

Hanging Unit

Hanging Unit

Hanging Unit

Hanging Unit

Hanging Unit

Hanging Unit

Hanging Unit

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Visitor Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Hanging Unit

Hanging Unit

Hanging Unit

Hanging Unit

Hanging Unit

Hanging Unit

1,575

1,575

1,575

1,575

1,600

1,725

1,725

1,725

1,878

1,878

1,878

1,878

1,878

1,878

1,878

1,878

1,878

1,878

2,000

2,000

2,000

2,000

2,000

2,000

2,000

2,000

2,000

2,000

2,000

2,000

2,000

2,000

2,000

2,000

2,011

2,011

2,011

2,011

2,011

2,161

2,161

2,161

2,161

2,161

2,161

2,161

2,161

2,161

2,161

2,161

2,161

2,214

2,214

2,214

2,214

2,214

2,214

1,574

1,574

1,574

1,574

1,599

1,724

1,724

1,724

1,877

1,877

1,877

1,877

1,877

1,877

1,877

1,877

1,877

1,877

1,999

1,999

1,999

1,999

1,999

1,999

1,999

1,999

1,999

1,999

1,999

1,999

1,999

1,999

1,999

1,999

2,010

2,010

2,010

2,010

2,010

2,160

2,160

2,160

2,160

2,160

2,160

2,160

2,160

2,160

2,160

2,160

2,160

2,213

2,213

2,213

2,213

2,213

2,213

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

125

125

125

125

300

50

100

100

150

150

150

150

150

150

150

150

150

150

106

106

106

106

106

106

100

100

100

100

100

100

150

150

150

100

400

400

400

400

400

150

150

150

150

150

150

150

150

200

200

200

850

400

400

400

400

400

400

124

124

124

124

299

49

99

99

149

149

149

149

149

149

149

149

149

149

105

105

105

105

105

105

99

99

99

99

99

99

149

149

149

99

399

399

399

399

399

149

149

149

149

149

149

149

149

199

199

199

849

399

399

399

399

399

399

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Rizwan

Rizwan

Rizwan

Rizwan

Chohan Autos

Babu And Bros

Babu And Bros

Babu And Bros

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Mastana Furniture Shop






Chohan Autos

Chohan Autos

Chohan Autos

Chohan Autos

Chohan Autos

Chohan Autos

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Babu And Bros

Fakhar Din Scrap

Fakhar Din Scrap

Fakhar Din Scrap

Fakhar Din Scrap

Fakhar Din Scrap

Shaheen Enterprise

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Taj Traders

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

163


Hanging Unit

Hanging Unit

Hanging Unit

Hanging Unit

Teak Board

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Conference Chair

Teak Board

Tablet Chairs

Tablet Chairs

Tablet Chairs

Tablet Chairs

Tablet Chairs

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Of�ce Chairs

Of�ce Chairs

Of�ce Chairs

Of�ce Chairs

Of�ce Chairs

Visitor Chair

Visitor Chair

Visitor Chair

Visitor Chair

Visitor Chair

Visitor Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Visitor Chair

Visitor Chair

2,228

2,228

2,228

2,228

2,366

2,454

2,454

2,454

2,454

2,454

2,454

2,454

2,454

2,454

2,454

2,454

2,454

2,454

2,454

2,454

2,454

2,454

2,454

2,454

2,454

2,461

2,500

2,500

2,500

2,500

2,500

2,800

2,800

2,800

2,800

2,800

2,800

2,800

2,800

2,800

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

2,227

2,227

2,227

2,227

2,365

2,453

2,453

2,453

2,453

2,453

2,453

2,453

2,453

2,453

2,453

2,453

2,453

2,453

2,453

2,453

2,453

2,453

2,453

2,453

2,453

2,460

2,499

2,499

2,499

2,499

2,499

2,799

2,799

2,799

2,799

2,799

2,799

2,799

2,799

2,799

2,999

2,999

2,999

2,999

2,999

2,999

2,999

2,999

2,999

2,999

2,999

2,999

2,999

2,999

2,999

2,999

2,999

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

100

100

100

100

20

106

106

850

850

850

850

850

850

298

298

298

298

298

298

298

298

298

298

298

298

150

580

580

580

580

580

454

454

908

454

250

250

250

250

250

500

500

500

500

500

500

106

106

106

106

106

106

454

454

454

200

200

99

99

99

99

19

105

105

849

849

849

849

849

849

297

297

297

297

297

297

297

297

297

297

297

297

149

579

579

579

579

579

453

453

907

453

249

249

249

249

249

499

499

499

499

499

499

105

105

105

105

105

105

453

453

453

199

199

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Kamran Iscrap Work

Kamran Iscrap Work

Kamran Iscrap Work

Kamran Iscrap Work

Fakhar Din Scrap



Taj Traders

Taj Traders

Taj Traders

Taj Traders

Taj Traders

Taj Traders

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Shaheen Enterprise

Babu And Bros

Babu And Bros

Babu And Bros

Babu And Bros

Babu And Bros

Allah Bux Khaskhali

Allah Bux Khaskhali

Allah Bux Khaskhali

Allah Bux Khaskhali

A2Z Enterprises

A2Z Enterprises

A2Z Enterprises

A2Z Enterprises

A2Z Enterprises

Shair Ali

Shair Ali

Shair Ali

Shair Ali

Shair Ali

Shair Ali







Allah Bux Khaskhali

Allah Bux Khaskhali

Allah Bux Khaskhali

Shaheen Enterprise

Shaheen Enterprise

164


Visitor Chair

Visitor Chair

Visitor Chair

Hanging Unit

Hanging Unit

Hanging Unit

Hanging Unit

Revolving Chair

Revolving Chair

Revolving Chair

Chair

Staff Chairs

Staff Chairs

Staff Chairs

Staff Chairs

Staff Chairs

Staff Chairs

Of�ce Chair

Small Black Chairs

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Visitor Chair

Visitor Chair

Hanging Unit

Hanging Unit

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Visitor Chair

Visitor Chair

Visitor Chair

Visitor Chair

Visitor Chair

Visitor Chair

Visitor Chair

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,119

3,119

3,119

3,150

3,200

3,200

3,200

3,200

3,200

3,200

3,200

3,200

3,200

3,200

3,200

3,200

3,200

3,200

3,235

3,235

3,237

3,237

3,237

3,237

3,237

3,237

3,237

3,237

3,237

3,237

3,237

3,248

3,248

3,248

3,248

3,248

3,248

3,248

2,999

2,999

2,999

2,999

2,999

2,999

2,999

2,999

2,999

2,999

2,999

2,999

2,999

2,999

2,999

2,999

2,999

2,999

2,999

3,118

3,118

3,118

3,149

3,199

3,199

3,199

3,199

3,199

3,199

3,199

3,199

3,199

3,199

3,199

3,199

3,199

3,199

3,234

3,234

3,236

3,236

3,236

3,236

3,236

3,236

3,236

3,236

3,236

3,236

3,236

3,247

3,247

3,247

3,247

3,247

3,247

3,247

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

200

200

200

200

200

200

200

150

150

150

250

200

200

200

200

200

200

250

160

500

500

500

150

200

200

200

200

200

200

200

200

200

200

200

200

171

171

100

100

455

455

455

455

455

455

455

455

455

455

455

150

150

150

150

150

150

150

199

199

199

199

199

199

199

149

149

149

249

199

199

199

199

199

199

249

159

499

499

499

149

199

199

199

199

199

199

199

199

199

199

199

199

170

170

99

99

454

454

454

454

454

454

454

454

454

454

454

149

149

149

149

149

149

149

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Taj Traders

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Taj Traders

Hair ur Rehman




Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Hair ur Rehman

Hair ur Rehman

Babu And Bros

Babu And Bros



















165


Visitor Chair

Visitor Chair

Visitor Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Of�ce Chair

Of�ce Chair

Of�ce Chair

Cubical

Cubical

Cubical

Cubical

Cubical

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Visitor Chair

Executive Chair

3,248

3,248

3,248

3,320

3,320

3,320

3,320

3,320

3,320

3,320

3,320

3,320

3,320

3,320

3,320

3,342

3,342

3,342

3,342

3,342

3,342

3,342

3,342

3,342

3,342

3,342

3,342

3,500

3,500

3,500

3,500

3,500

3,500

3,500

3,500

3,500

3,500

3,500

3,500

3,500

3,500

3,664

3,664

3,664

3,750

3,750

3,750

3,750

3,750

3,800

3,800

3,800

3,800

3,800

3,800

3,800

3,800

3,247

3,247

3,247

3,319

3,319

3,319

3,319

3,319

3,319

3,319

3,319

3,319

3,319

3,319

3,319

3,341

3,341

3,341

3,341

3,341

3,341

3,341

3,341

3,341

3,341

3,341

3,341

3,499

3,499

3,499

3,499

3,499

3,499

3,499

3,499

3,499

3,499

3,499

3,499

3,499

3,499

3,663

3,663

3,663

3,749

3,749

3,749

3,749

3,749

3,799

3,799

3,799

3,799

3,799

3,799

3,799

3,799

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

150

150

150

393

393

393

393

393

393

393

393

393

393

394

394

100

100

100

100

100

100

100

100

100

100

100

100

500

150

150

150

150

150

150

150

150

200

250

250

300

300

250

250

250

800

200

200

200

200

1,300

500

500

500

500

500

500

200

149

149

149

392

392

392

392

392

392

392

392

392

392

393

393

99

99

99

99

99

99

99

99

99

99

99

99

499

149

149

149

149

149

149

149

149

199

249

249

299

299

249

249

249

799

199

199

199

199

1,299

499

499

499

499

499

499

199

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction




Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Kamran Iscrap Work

Kamran Iscrap Work

Kamran Iscrap Work

Kamran Iscrap Work

Kamran Iscrap Work

Kamran Iscrap Work

Kamran Iscrap Work

Kamran Iscrap Work

Kamran Iscrap Work

Kamran Iscrap Work

Kamran Iscrap Work

Kamran Iscrap Work


Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Salman Scrap Works

Salman Scrap Works

A2Z Enterprises

A2Z Enterprises

Taj Traders

Taj Traders

Taj Traders


Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

National Traders








166


Steel Cardex

Single Seater Sofa

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Steel Cardex

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Manager Chair

Steel Rack

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Manager Chair

Revolving Chair

Revolving Chair

Hanging Unit

Hanging Unit

Hanging Unit

Hanging Unit

Hanging Unit

Hanging Unit

Hanging Unit

Executive Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Conference Chair

Visitor Chair

Visitor Chair

Visitor Chair

3,800

3,800

3,800

3,800

3,800

3,800

3,800

3,800

3,800

3,800

3,800

3,800

3,800

3,800

3,800

3,800

3,800

3,800

3,800

3,800

3,800

3,800

3,800

3,800

3,800

3,800

3,800

3,800

3,800

3,800

3,800

3,800

3,800

3,800

3,800

3,800

3,850

3,850

3,961

3,961

3,961

3,961

3,961

3,961

3,961

4,000

4,000

4,000

4,000

4,000

4,000

4,000

4,000

4,000

4,080

4,080

4,080

3,799

3,799

3,799

3,799

3,799

3,799

3,799

3,799

3,799

3,799

3,799

3,799

3,799

3,799

3,799

3,799

3,799

3,799

3,799

3,799

3,799

3,799

3,799

3,799

3,799

3,799

3,799

3,799

3,799

3,799

3,799

3,799

3,799

3,799

3,799

3,799

3,849

3,849

3,960

3,960

3,960

3,960

3,960

3,960

3,960

3,999

3,999

3,999

3,999

3,999

3,999

3,999

3,999

3,999

4,079

4,079

4,079

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

2,000

1,000

510

510

510

510

510

520

510

400

150

150

150

150

150

150

150

150

400

400

400

400

400

400

400

400

250

300

192

192

192

192

192

192

192

203

1,000

1,000

150

150

150

200

200

200

200

300

400

250

250

250

250

250

250

850

500

500

500

1,999

999

509

509

509

509

509

519

509

399

149

149

149

149

149

149

149

149

399

399

399

399

399

399

399

399

249

299

191

191

191

191

191

191

191

202

999

999

149

149

149

199

199

199

199

299

399

249

249

249

249

249

249

849

499

499

499

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Shair Ali

Shair Ali









Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Chohan Autos

Chohan Autos

Chohan Autos

Chohan Autos

Chohan Autos

Chohan Autos

Chohan Autos

Chohan Autos

Taj Traders

Shaheen Enterprises

Attiqu Scarp

Attiqu Scarp

Attiqu Scarp

Attiqu Scarp

Attiqu Scarp

Attiqu Scarp

Attiqu Scarp

Hair ur Rehman

Rizwan

Rizwan

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise


Taj Traders

Taj Traders

Taj Traders

Taj Traders

Taj Traders

Taj Traders

Taj Traders

Babu And Bros

Babu And Bros

Babu And Bros

167


Visitor Chair

Visitor Chair

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Hanging Unit

Hanging Unit

Hanging Unit

Hanging Unit

Hanging Unit

Hanging Unit

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Revolving Chair

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

4,080

4,080

4,098

4,098

4,098

4,098

4,098

4,098

4,141

4,141

4,141

4,141

4,141

4,141

4,173

4,173

4,173

4,173

4,173

4,173

4,173

4,173

4,173

4,173

4,173

4,173

4,173

4,173

4,173

4,173

4,173

4,173

4,173

4,173

4,173

4,173

4,200

4,200

4,200

4,200

4,200

4,206

4,206

4,206

4,206

4,206

4,206

4,206

4,206

4,206

4,233

4,233

4,233

4,233

4,233

4,233

4,233

4,079

4,079

4,097

4,097

4,097

4,097

4,097

4,097

4,140

4,140

4,140

4,140

4,140

4,140

4,172

4,172

4,172

4,172

4,172

4,172

4,172

4,172

4,172

4,172

4,172

4,172

4,172

4,172

4,172

4,172

4,172

4,172

4,172

4,172

4,172

4,172

4,199

4,199

4,199

4,199

4,199

4,205

4,205

4,205

4,205

4,205

4,205

4,205

4,205

4,205

4,232

4,232

4,232

4,232

4,232

4,232

4,232

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

500

500

600

600

600

600

600

600

250

250

250

250

250

250

150

150

150

150

150

150

150

150

150

150

150

150

200

200

200

200

200

200

200

200

200

200

570

570

570

570

580

300

300

300

300

300

300

300

300

394

100

100

100

100

100

100

100

499

499

599

599

599

599

599

599

249

249

249

249

249

249

149

149

149

149

149

149

149

149

149

149

149

149

199

199

199

199

199

199

199

199

199

199

569

569

569

569

579

299

299

299

299

299

299

299

299

393

99

99

99

99

99

99

99

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Babu And Bros

Babu And Bros

Babu And Bros

Babu And Bros

Babu And Bros

Babu And Bros

Babu And Bros

Babu And Bros

Fakhar Din Scrap

Fakhar Din Scrap

Fakhar Din Scrap

Fakhar Din Scrap

Fakhar Din Scrap

Fakhar Din Scrap

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises






Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Kamran Iscrap Work

Kamran Iscrap Work

Kamran Iscrap Work

Kamran Iscrap Work

Kamran Iscrap Work

Kamran Iscrap Work

Kamran Iscrap Work

168


Single Seater Sofa

Revolving Chair

Visitor Chair

Visitor Chair

Visitor Chair

Visitor Chair

Visitor Chair

Visitor Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Low Back Chair

Low Back Chairs

Revolving Chair

Revolving Chair

Revolving Chair

Low Back Chairs

Low Back Chairs

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Of�ce Table

4,233

4,233

4,261

4,261

4,261

4,261

4,261

4,261

4,261

4,261

4,261

4,261

4,261

4,261

4,261

4,261

4,261

4,261

4,261

4,261

4,261

4,261

4,261

4,261

4,261

4,261

4,261

4,261

4,261

4,261

4,261

4,261

4,335

4,382

4,400

4,400

4,400

4,400

4,400

4,496

4,496

4,496

4,496

4,496

4,496

4,496

4,496

4,496

4,496

4,496

4,496

4,496

4,496

4,496

4,496

4,496

4,500

4,232

4,232

4,260

4,260

4,260

4,260

4,260

4,260

4,260

4,260

4,260

4,260

4,260

4,260

4,260

4,260

4,260

4,260

4,260

4,260

4,260

4,260

4,260

4,260

4,260

4,260

4,260

4,260

4,260

4,260

4,260

4,260

4,334

4,381

4,399

4,399

4,399

4,399

4,399

4,495

4,495

4,495

4,495

4,495

4,495

4,495

4,495

4,495

4,495

4,495

4,495

4,495

4,495

4,495

4,495

4,495

4,499

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

99

149

149

149

149

149

149

149

149

199

199

199

199

199

199

199

199

299

299

149

149

149

149

149

499

499

499

499

499

499

499

499

199

149

499

299

399

399

399

1,199

1,199

1,199

1,199

1,199

1,199

1,199

1,199

1,199

1,199

1,199

1,199

1,199

1,199

1,199

1,199

1,199

699

499

499

599

599

599

599

599

599

249

249

249

249

249

249

149

149

149

149

149

149

149

149

149

149

149

149

199

199

199

199

199

199

199

199

199

199

569

569

569

569

579

299

299

299

299

299

299

299

299

393

99

99

99

99

99

99

99

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Kamran Iscrap Work

Kamran Iscrap Work

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

A2Z Enterprises

A2Z Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Babu And Bros

Babu And Bros

Babu And Bros

Babu And Bros

Babu And Bros

Babu And Bros

Babu And Bros

Babu And Bros


Shaheen Enterprises


A2Z Enterprises

Rati Coal Center

Rati Coal Center

Rati Coal Center

Fakhar Din Scrap

Fakhar Din Scrap

Fakhar Din Scrap

Fakhar Din Scrap

Fakhar Din Scrap

Fakhar Din Scrap

Fakhar Din Scrap

Fakhar Din Scrap

Fakhar Din Scrap

Fakhar Din Scrap

Fakhar Din Scrap

Fakhar Din Scrap

Fakhar Din Scrap

Fakhar Din Scrap

Fakhar Din Scrap

Fakhar Din Scrap

Fakhar Din Scrap


169


Single Seater Sofa

Single Seater Sofa

Steel Cardex

Revolving Chair

Of�ce Table

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Single Seater Sofa

Table

Steel Cardex

Steel Cardex

Steel Cardex

Of�ce Table

Revolving Chair

Revolving Chair

Of�ce Table

Of�ce Table

Table With Rack

Table With Rack

Cubical

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Visitor Chair

Revolving Chair

Visitor Chair

Visitor Chair

Revolving Chair

Revolving Chair

Of�ce Table

Revolving Chair

Visitor Chair

Visitor Chair

Visitor Chair

Visitor Chair

Visitor Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

4,500

4,500

4,500

4,500

4,500

4,554

4,554

4,554

4,554

4,554

4,554

4,600

4,661

4,661

4,661

4,661

4,661

4,661

4,661

4,661

4,775

4,800

4,800

4,800

4,900

4,961

5,000

5,000

5,000

5,000

5,000

5,000

5,200

5,200

5,200

5,200

5,200

5,200

5,200

5,200

5,200

5,200

5,200

5,200

5,208

5,208

5,233

5,324

5,443

5,443

5,443

5,443

5,443

5,500

5,500

5,500

5,500

4,499

4,499

4,499

4,499

4,499

4,553

4,553

4,553

4,553

4,553

4,553

4,599

4,660

4,660

4,660

4,660

4,660

4,660

4,660

4,660

2,308

4,799

4,799

4,799

4,899

4,960

4,999

4,999

4,999

4,999

4,999

4,999

5,199

5,199

5,199

5,199

5,199

5,199

5,199

5,199

5,199

5,199

5,199

5,199

5,207

5,207

2,878

5,323

5,442

5,442

5,442

5,442

5,442

5,499

5,499

5,499

5,499

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

2,467

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

2,355

1

1

1

1

1

1

1

1

1

1

570

570

400

300

200

394

394

394

394

394

394

150

150

150

150

150

150

150

200

200

1,000

454

2,000

1,000

500

500

454

500

500

1,400

1,400

267

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

278

278

500

1,200

150

150

150

150

150

250

250

250

250

569

569

399

299

199

393

393

393

393

393

393

149

149

149

149

149

149

149

199

199

(1,467)

453

1,999

999

499

499

453

499

499

1,399

1,399

266

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

1,299

277

277

(1,855)

1,199

149

149

149

149

149

249

249

249

249

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction




A2Z Enterprises

M Azad Traders

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprises

Shaheen Enterprises

Mudasr Furniture

Allah Bux Khaskhali

Shaheen Enterprise

Salman Scrap Works

Shair Ali

Shaheen Enterprises

Allah Bux Khaskhali

Rizwan

Rizwan

Taj Traders

Taj Traders

Hair ur Rehman

National Traders

National Traders

National Traders

National Traders

National Traders

National Traders

National Traders

National Traders

National Traders

National Traders

National Traders

National Traders

Hair ur Rehman

Hair ur Rehman

Shaheen Enterprise

Fakhar Din Scrap

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Malik Wood Wokrs

Malik Wood Wokrs

Malik Wood Wokrs

Malik Wood Wokrs

170


Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Steel Server Rack

Cubical

Cubical

Cubical

Cubical

Cubical

Cubical

Cubical

Cubical

Revolving Chair

Conference Table

Conference Table

Conference Table

Table

Deodar Bench

Of�ce Table

Computer Table

Of�ce Table

Visitor Chair

Of�ce Table

Revolving Chair

Revolving Chair

Revolving Chair

Visitor Chair

Computer Table

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Executive Chair

Executive Chair

Executive Chair

Executive Chair

Executive Chair

Executive Chair

Revolving Chair

Conference Table

Conference Table

Revolving Chair

Revolving Chair

Of�ce Chair

Conference Table

Chair

Table

Staff Table

Table

Table

Staff Table

Revolving Chair

Staff Table

5,500

5,500

5,500

5,500

5,500

5,500

5,500

5,520

5,534

5,534

5,534

5,534

5,534

5,534

5,534

5,534

5,715

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,380

6,380

6,380

6,400

6,470

6,500

6,500

6,500

6,500

6,500

6,500

6,500

6,500

6,500

6,500

6,500

6,500

6,500

6,500

6,500

6,500

6,641

6,740

7,500

7,500

7,500

7,500

7,500

7,540

7,798

5,499

5,499

5,499

5,499

5,499

5,499

5,499

5,519

5,533

5,533

5,533

5,533

5,533

5,533

5,533

5,533

5,714

5,999

4,800

5,999

5,999

5,999

5,999

5,999

5,999

5,999

5,999

6,379

6,379

6,379

5,440

6,469

6,499

6,499

6,499

6,499

6,499

6,499

6,499

6,499

6,499

6,499

6,499

6,499

6,499

6,499

6,499

6,499

6,640

3,258

7,499

7,499

7,499

7,499

7,499

7,539

7,797

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1,200

1

1

1

1

1

1

1

1

1

1

1

960

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

3,482

1

1

1

1

1

1

1

250

250

192

192

192

192

192

500

500

500

500

500

500

500

500

500

454

500

500

300

500

300

875

1,000

150

1,000

1,400

100

250

250

300

700

1,300

1,300

1,300

1,300

2,000

2,000

2,000

2,000

2,000

2,000

500

500

500

300

300

250

1,000

2,000

500

106

500

1,000

5,250

150

875

249

249

191

191

191

191

191

499

499

499

499

499

499

499

499

499

453

499

(700)

299

499

299

874

999

149

999

1,399

99

249

249

(660)

699

1,299

1,299

1,299

1,299

1,999

1,999

1,999

1,999

1,999

1,999

499

499

499

299

299

249

999

(1,482)

499

105

499

999

5,249

149

874

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Malik Wood Wokrs

Malik Wood Wokrs

Attiqu Scarp

Attiqu Scarp

Attiqu Scarp

Attiqu Scarp

Attiqu Scarp

Shaheen Enterprise

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Mumtaz Kabaria

Allah Bux Khaskhali

Shair Ali

Shair Ali

Shaheen Enterprise

Shaheen Enterprise

Salman Scrap Works

Malik Wood Wokrs

Mehbran Kbar Center

M Azad Traders

M Azad Traders

Taj Traders

Kamran Iscrap Work

Salman Scrap Works

Salman Scrap Works

Babar Scrap Dealer

Babu And Bros

National Traders

National Traders

National Traders

National Traders

National Traders

National Traders

National Traders

National Traders

National Traders

National Traders


Shaheen Enterprise

Shaheen Enterprise

A2Z Enterprises

A2Z Enterprises

Taj Traders

Mumtaz Kabaria

Mudasr Furniture

Shair Ali


Shaheen Enterprise

Chohan Autos

Nisan Cables

Kamran Iscrap Work

Malik Wood Wokrs

171


Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Staff Table

Staff Table

Staff Table

Staff Table

Staff Table

Executive Chair

Table

Executive Chair

Manager Table

Conference Table

Table

Table

Table

Table

Revolving Chair

Meeting Table

Table

Table

Table

Table For Of�cers

Table For Of�cers

Revolving Chair

Revolving Chair

Revolving Chair

Table

Of�ce Table

Of�ce Table

Manager Table

Manager Table

Executive Chair

Executive Chair

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair

Steel Rack For Ups Batteries

Table

Table

Table

Of�ce Table

Of�ce Table

Of�ce Table

Table

Visitor Chair

Visitor Chair

Table

Table

Of�ce Table

Cubical

Table

Cubical

Cubical

Cubical

8,216

8,216

8,216

8,216

8,327

8,500

8,500

8,500

8,500

8,774

8,961

8,999

9,000

9,000

9,000

9,000

9,000

9,000

9,000

9,166

9,200

9,357

9,500

9,706

9,706

9,862

9,985

10,000

10,024

10,056

10,056

10,245

10,356

10,500

10,500

10,500

10,500

10,500

10,500

10,530

10,560

10,560

10,560

11,400

11,473

11,473

11,962

12,500

12,500

13,014

13,014

13,225

13,500

13,500

13,500

13,500

13,500

6,162

4,930

4,930

4,930

8,326

8,499

8,499

8,499

8,499

2,925

8,960

5,399

7,650

8,999

8,999

8,999

8,999

8,999

8,999

9,165

9,199

9,356

9,499

9,705

9,705

7,397

7,489

9,999

10,023

10,055

10,055

10,244

10,355

10,499

10,499

10,499

10,499

10,499

10,499

2,281

10,559

10,559

10,559

9,690

11,472

11,472

11,961

12,499

12,499

13,013

13,013

13,224

13,499

13,499

13,499

13,499

13,499

2,054

3,286

3,286

3,286

1

1

1

1

1

5,849

1

3,600

1,350

1

1

1

1

1

1

1

1

1

1

1

1

2,465

2,496

1

1

1

1

1

1

1

1

1

1

1

1

8,249

1

1

1

1,710

1

1

1

1

1

1

1

1

1

1

1

1

1

500

500

500

400

5,250

700

875

1,000

500

150

500

200

500

454

300

450

1,000

1,000

700

1,000

500

875

300

550

550

350

400

454

1,000

2,450

2,450

1,000

800

2,000

500

192

1,600

1,600

150

1,500

500

500

500

400

454

454

1,000

1,300

1,300

2,450

2,450

1,000

454

454

400

400

500

(1,554)

(2,786)

(2,786)

(2,886)

5,249

699

874

999

499

(5,699)

499

(3,400)

(850)

453

299

449

999

999

699

999

499

874

299

549

549

(2,115)

(2,096)

453

999

2,449

2,449

999

799

1,999

499

191

1,599

1,599

149

(6,749)

499

499

499

(1,310)

453

453

999

1,299

1,299

2,449

2,449

999

453

453

399

399

499

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Chohan Autos

Chohan Autos

Chohan Autos

Rati Coal Center

Nisan Cables


Malik Wood Wokrs

Mehbran Kbar Center

Attiqu Scarp

Shaheen Enterprise

Shaheen Enterprise


Shair Ali

Allah Bux Khaskhali

Shaheen Enterprise

Shaheen Enterprise

Chohan Autos

Chohan Autos

Babar Scrap Dealer

Babu And Bros

Babu And Bros

Malik Wood Wokrs

Shaheen Enterprise

Babu And Bros

Babu And Bros

M Azad Traders

Rati Coal Center

Allah Bux Khaskhali

Kamran Iscrap Work

Fakhar Din Scrap

Fakhar Din Scrap

Babu And Bros

Shaheen Enterprise

National Traders

Shaheen Enterprise

Attiqu Scarp

Taj Traders

Taj Traders

Shaheen Enterprises


Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Babar Scrap Dealer

Allah Bux Khaskhali

Allah Bux Khaskhali

Babu And Bros

National Traders

National Traders

Fakhar Din Scrap

Fakhar Din Scrap

Mehbran Kbar Center

Allah Bux Khaskhali

Allah Bux Khaskhali

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

172


Cubical

Cubical

Wooden File Cabinet

Cubical

Cubical

Cubical

Table

Cubical

Cubical

Cubical

Cubical

Conference Table

Steel File Cabinet

Table With Rack

Of�ce Table

Executive Chair

Executive Chair

Executive Chair

Executive Chair

Executive Chair

Executive Chair

Executive Chair

Executive Chair

Side Rack

Cubical

Cubical

Cubical

Cubical

Cubical

Cubical

Cubical

Cubical

Cubical

Table

Table With Rack


Cubical

Cubical

Cubical

Cubical

Cubical

Cubical

Conference Chair

Cubical

Steel Almirah

Side Rack

Server Rack

Iron Safe

Of�ce Table

Revolving Chair

Transportation Charges

Transportation Charges

Fire Proof Almirah

Revolving Chair

Steel Server Rack

Steel Server Rack

Server Rack

13,500

13,500

13,500

13,500

13,500

13,500

13,500

13,500

13,500

13,500

13,500

14,000

14,200

15,000

17,000

17,700

17,700

17,700

17,700

17,700

17,700

17,700

17,700

18,000

20,000

20,000

20,000

20,000

20,000

20,000

20,000

20,000

20,000

20,008

20,504

21,000

21,568

21,568

21,568

21,568

22,277

22,277

24,006

24,425

25,000

25,633

26,000

27,025

27,372

28,350

28,500

28,500

28,635

29,000

30,000

30,000

30,000

13,499

13,499

13,499

13,499

13,499

13,499

13,499

13,499

13,499

13,499

13,499

13,999

14,199

14,999

16,999

17,699

17,699

17,699

17,699

17,699

17,699

17,699

17,699

17,999

19,999

19,999

19,999

19,999

19,999

19,999

19,999

19,999

19,999

18,007

12,302

18,900

21,567

21,567

21,567

21,567

22,276

22,276

22,805

24,424

24,999

15,380

25,999

27,024

27,371

28,349

28,499

28,499

28,634

28,999

29,999

29,999

29,999

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

2,001

8,202

2,100

1

1

1

1

1

1

1,201

1

1

10,253

1

1

1

1

1

1

1

1

1

1

1

500

500

300

1,400

1,400

1,400

1,500

650

650

650

650

600

2,750

1,750

1,750

2,500

2,500

2,500

2,500

2,500

2,500

2,500

2,500

200

1,000

105

105

500

500

400

400

1,000

1,000

4,900

1,800

1,500

500

500

500

500

100

100

1,500

3,600

1,800

3,600

1,500

3,000

908

2,720

1,521

1,521

1,000

3,750

2,000

2,500

2,000

499

499

299

1,399

1,399

1,399

1,499

649

649

649

649

599

2,749

1,749

1,749

2,499

2,499

2,499

2,499

2,499

2,499

2,499

2,499

199

999

104

104

499

499

399

399

999

999

2,899

(6,402)

(600)

499

499

499

499

99

99

299

3,599

1,799

(6,653)

1,499

2,999

907

2,719

1,520

1,520

999

3,749

1,999

2,499

1,999

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Shaheen Enterprise

Shaheen Enterprise

A2Z Enterprises

Taj Traders

Taj Traders

Taj Traders

Babu And Bros

Babu And Bros

Babu And Bros

Babu And Bros

Babu And Bros

M Azad Traders

Babu And Bros

A2Z Enterprise


National Traders

National Traders

National Traders

National Traders

National Traders

National Traders

National Traders

National Traders

Shaheen Enterprise

Shair Ali



Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Chohan Autos

Chohan Autos

Fakhar Din Scrap


Babu And Bros

Babu And Bros

Babu And Bros

Babu And Bros

Babu And Bros

Kamran Iscrap Work

Kamran Iscrap Work

Taj Traders


Chohan Autos



Babu And Bros

Allah Bux Khaskhali


Hair ur Rehman

Hair ur Rehman

Babu And Bros

Shaheen Enterprise

Shair Ali


Chohan Autos

173


Rack

Cubical

Conference Chair

Steel Rack

Steel Made Server Rack

Steel Server Rack

Steel Server Rack

Steel Rack

Visitor Chair

Four Seater Sofa

Revolving Chair

Steel Rack

Server Rack

Fire Proof Iron Safe

Cash Safe

Cash Safe

Conference Chair

Vertical Blinds

Revolving Chair

Revolving Chair

Revolving Chair

Revolving Chair


Glass Door

Revolving Chair

Revolving Chair

Strong Room Door

Strong Room Door

Of�ce Table

Revolving Chair

Strong Room Door

Strong Room


Revolving Chair

Strong Room Door

Fire Proof Room Door

Revolving Chair

Cash Safe

Cash Safe

Revolving Chair

Revolving Chair

Furniture

Revolving Chair

Sub-Total

30,000

30,000

30,000

30,000

30,000

31,000

32,000

32,000

32,008

34,000

34,225

35,000

35,000

36,000

36,000

36,000

40,010

40,393

41,070

41,070

41,070

41,070

43,000

44,000

44,429

44,940

48,000

48,000

54,111

59,920

62,000

63,000

63,000

64,917

78,500

78,500

112,350

120,000

120,000

150,000

184,800

249,200

360,800

6,748,636

29,999

29,999

29,999

29,999

29,999

30,999

31,999

31,999

20,805

33,999

28,521

34,999

34,999

35,999

35,999

35,999

39,343

40,392

31,487

30,802

40,385

36,963

38,700

43,999

26,657

29,960

47,999

47,999

32,467

28,961

61,999

53,550

62,999

48,688

71,958

70,650

37,899

119,999

119,999

82,500

101,640

249,199

186,413

6,104,570

1

1

1

1

1

1

1

1

11,203

1

5,704

1

1

1

1

1

667

1

9,583

10,268

685

4,107

4,300

1

17,772

14,980

1

1

21,644

30,959

1

9,450

1

16,229

6,542

7,850

74,451

1

1

67,500

83,160

1

174,387

644,066

700

900

5,000

500

5,000

600

1,500

200

3,000

1,000

1,000

1,000

500

500

4,000

3,000

2,980

5,000

900

4,000

7,200

2,364

3,000

2,000

1,200

2,400

6,000

7,100

4,000

3,152

30,000

9,000

6,000

2,000

18,800

34,000

2,250

5,000

5,000

15,600

27,300

2,000

53,300

747,559

699

899

4,999

499

4,999

599

1,499

199

(8,203)

999

(4,704)

999

499

499

3,999

2,999

2,313

4,999

(8,683)

(6,268)

6,515

(1,743)

(1,300)

1,999

(16,572)

(12,580)

5,999

7,099

(17,644)

(27,807)

29,999

(450)

5,999

(14,229)

12,258

26,150

(72,201)

4,999

4,999

(51,900)

(55,860)

1,999

(121,087)

103,493

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Kamran Iscrap Work

M Azad Traders

M Azad Traders

Shaheen Enterprises

Babu And Bros

Shaheen Enterprise


M Azad Traders

Shair Ali

A2Z Enterprises


Fakhar Din Scrap

Shaheen Enterprises


Chohan Autos

Rati Coal Center

Mumtaz Kabaria

National Traders

Shaheen Enterprise

Shaheen Enterprise

Fakhar Din Scrap

Mumtaz Kabaria

Babu And Bros

Mehbran Kbar Center


Rati Coal Center

Chohan Autos

Mehbran Kbar Center


Mumtaz Kabaria

Shaheen Enterprise

M Azad Traders

Babu And Bros

M Azad Traders

Azad Scrap Store

Rizwan

Shaheen Enterprise

M Azad Traders

Rati Coal Center

National Traders

National Traders

Attiqu Scarp

National Traders

Computer Equipments

Scanner

Cisco Switch

Server

Scanner

Printer

Desktop System

Printer

Desktop System

Desktop System

Desktop System

6,120

45,240

137,540

6,325

50,025

66,000

19,400

47,500

47,500

47,500

5,949

45,239

122,427

6,324

50,024

65,999

19,399

47,499

47,499

47,499

171

1

15,113

1

1

1

1

1

1

1

200

200

1,500

150

150

500

150

1,000

1,000

1,000

29

199

(13,613)

149

149

499

149

999

999

999

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction











174


Desktop System

Desktop System

Scanner

Printer

Server

Printer

Printer

Laptop

Desktop System

Desktop System

Desktop System

Desktop System

Scanner

Scanner

Desktop System

Printer

Printer

Desktop System

Printer

Printer

Scanner

Server

Desktop System

Printer

Server

Server

Server

Server

Server

Dvd Writer

Hard Disk

Dvd Writer

Desktop System

Desktop System

Desktop System

Desktop System

Desktop System

Hard Disk

Printer

Scanner

Printer

Scanner

Dvd Writer

Hard Disk

Multimedia Projector

Desktop System

Desktop System

Scanner

Desktop System

Desktop System

Scanner

Desktop System

Desktop System

Desktop System

Printer

Server

IBM System

5,500

46,000

6,325

22,885

700,000

50,025

22,425

117,333

1

1

1

1

1

1

1

1

1

50,000

22,977

21,200

7,277

111,202

47,500

43,500

48,500

48,500

48,500

48,500

48,500

9,600

16,100

6,500

47,500

47,500

47,500

47,500

47,500

16,600

43,500

5,500

19,900

7,277

6,500

9,900

74,750

47,500

47,500

5,500

1

1

1

1

1

1

14,600

355,500

55,500

5,499

45,999

6,324

22,884

699,999

50,024

22,424

117,332

-

-

-

-

-

-

-

-

-

49,999

22,976

21,199

5,053

111,201

47,499

43,499

48,499

48,499

48,499

48,499

48,499

9,599

16,099

6,499

47,499

47,499

47,499

47,499

47,499

16,599

43,499

5,499

19,899

5,053

6,499

9,899

74,749

47,499

47,499

5,499

-

-

-

-

-

-

14,599

355,499

55,499

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

2,224

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

2,224

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

200

2,500

1,000

2,000

2,000

700

500

500

400

400

400

400

200

200

400

500

500

400

500

500

200

500

500

200

500

500

500

500

500

200

100

500

1,000

1,000

1,000

1,000

1,000

200

200

200

200

100

500

100

300

500

500

100

400

400

200

400

400

400

500

1,000

400

199

2,499

999

1,999

1,999

699

499

499

399

399

399

399

199

199

399

499

499

399

499

499

(2,024)

499

499

199

499

499

499

499

499

199

99

499

999

999

999

999

999

199

199

199

199

(2,124)

499

99

299

499

499

99

399

399

199

399

399

399

499

999

399

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction


Shair Ali

Shair Ali

Shair Ali

Shair Ali




A2Z Enterprise

A2Z Enterprise

A2Z Enterprise

A2Z Enterprise

A2Z Enterprise

A2Z Enterprise

A2Z Enterprise

A2Z Enterprise

A2Z Enterprise

A2Z Enterprise

A2Z Enterprise

A2Z Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

Shaheen Enterprise

A2Z Enterprise

A2Z Enterprise

A2Z Enterprise

A2Z Enterprise

A2Z Enterprise

A2Z Enterprise

A2Z Enterprise

Salman Scrap Works

Salman Scrap Works

175


Printer

Epson Lq 2180

Printer

Printer

Dvd Writer

LCD Monitor

LCD Monitor

LCD Monitor

LCD Monitor

Printer

IBM System

Dvd Writer

System

System

System

Hard Disk

LCD Monitor

Scanner

Desktop System

System

Scanner

Server

Desktop System

Dvd Writer

System

System

System

System

System

Dvd Writer

LCD Monitor

LCD Monitor

Desktop System

Desktop System

Desktop System

Desktop System

Scanner

Printer

I.Direct Satellite Link

System

Desktop System

System

System

System

System

System

Printer

IBM System

IBM System

Printer

Dvd Writer

IBM System

Printer

Desktop System

IBM System

IBM System

Hp Laptop

38,750

42,500

19,250

32,667

9,950

47,500

47,500

47,500

47,500

32,051

65,000

9,950

47,500

47,500

47,500

16,600

47,500

6,325

47,500

45,000

6,380

1

51,411

7,100

47,500

47,500

47,500

47,500

47,500

9,950

47,500

47,500

47,500

47,500

47,500

47,500

6,325

22,885

205,000

45,000

60,000

50,000

50,000

50,000

50,000

50,000

36,424

135,000

21,417

19,350

17,200

63,000

32,667

58,000

115,000

115,000

59,500

38,749

42,499

19,249

32,666

9,949

47,499

47,499

47,499

47,499

32,050

64,999

9,949

47,499

47,499

47,499

16,599

47,499

6,324

47,499

44,999

6,379

-

51,410

7,099

47,499

47,499

47,499

47,499

47,499

9,949

47,499

47,499

47,499

47,499

47,499

47,499

6,324

22,884

204,999

44,999

59,999

49,999

49,999

49,999

49,999

49,999

36,423

134,999

21,416

19,349

17,199

62,999

32,666

57,999

114,999

114,999

59,499

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1,400

1,500

1,360

800

100

700

700

700

700

1,360

400

300

500

500

500

300

400

500

400

400

200

400

300

150

600

600

600

600

600

100

300

250

250

250

250

250

100

150

100

300

200

250

300

300

300

300

400

1,100

1,143

500

100

3,362

1,000

500

1,100

1,100

1,100

1,399

1,499

1,359

799

99

699

699

699

699

1,359

399

299

499

499

499

299

399

499

399

399

199

399

299

149

599

599

599

599

599

99

299

249

249

249

249

249

99

149

99

299

199

249

299

299

299

299

399

1,099

1,142

499

99

3,361

999

499

1,099

1,099

1,099

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Salman Scrap Works



Salman Scrap Works

Salman Scrap Works

Salman Scrap Works

Salman Scrap Works

Salman Scrap Works

Salman Scrap Works


A2Z Enterprises

A2Z Enterprises

A2Z Enterprises

A2Z Enterprises

A2Z Enterprises

A2Z Enterprises

A2Z Enterprises


A2Z Enterprises

A2Z Enterprises

A2Z Enterprises

A2Z Enterprises

Shaheen Enterprises

Rati Coal Center

Attiqu Scarp

Attiqu Scarp

Attiqu Scarp

Attiqu Scarp

Attiqu Scarp

Shaheen Enterprises

Shaheen Enterprises

Rati Coal Center

Rati Coal Center

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Rati Coal Center

Shaheen Enterprises

Rati Coal Center

Rati Coal Center

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Shaheen Enterprises

Rati Coal Center

Koksuai Computers

Hair ur Rehman

Koksuai Computers

Mumtaz Kabaria

Hair ur Rehman

Babu And Bros

Koksuai Computers

Koksuai Computers

Koksuai Computers

Koksuai Computers

176


Dvd Writer

Printer

IBM System

Desktop System

Printer

Printer

Hp Laptop

Hp Laptop

Hp Laptop

Laptop

Epson Lq-2180

Toshiba Psl48Lo20001

Laptop

Laptop

Laptop

Scanner

Laptop

Laptop

Printer

CD Writer

Printer

Projector

LCD Monitor

LCD Monitor

LCD Monitor

LCD Monitor

LCD Monitor

LCD Monitor

Desktop System

Desktop System

Desktop System

LCD Monitor

LCD Monitor

LCD Monitor

Desktop System

Desktop System

Desktop System

Desktop System

Laptop

Desktop System

Laptop

Hp Dc 5700 Small Form Factor Base

Desktop System

Desktop System

Desktop System

I-Direct Equipment & Its Installation

Printer

Desktop System

System

System

Printer

Hard Disk

System

System

System

IBM System

Server

9,950

19,250

58,000

58,000

27,300

19,250

88,000

88,000

86,200

72,000

43,500

72,000

108,600

108,600

72,000

5,500

76,500

76,500

22,885

7,100

22,885

74,750

47,500

47,500

47,500

47,500

47,500

47,500

48,500

47,500

47,500

47,500

47,500

47,500

47,500

47,500

47,500

47,500

75,000

75,000

47,500

47,500

47,500

47,500

47,500

205,000

50,025

47,500

45,000

45,000

14,600

9,900

69,567

69,567

10,500

44,714

111,202

9,949

19,249

57,999

57,999

27,299

19,249

87,999

87,999

86,199

71,999

43,499

71,999

108,599

108,599

71,999

5,499

76,499

76,499

22,884

7,099

22,884

74,749

47,499

47,499

47,499

47,499

47,499

47,499

48,499

47,499

47,499

47,499

47,499

47,499

47,499

47,499

47,499

47,499

74,999

74,999

47,499

47,499

47,499

47,499

47,499

204,999

50,024

47,499

44,999

44,999

14,599

9,899

69,566

69,566

10,499

44,713

111,201

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

531

1,027

529

529

400

400

1,100

1,100

1,100

1,100

2,321

1,100

1,100

1,100

1,100

500

1,100

1,100

500

500

300

100

528

529

529

528

529

529

500

528

529

2,000

2,000

2,000

527

529

529

529

1,100

500

528

528

500

500

528

1,000

300

500

1,000

529

300

1,500

1,100

1,100

600

500

700

530

1,026

528

528

399

399

1,099

1,099

1,099

1,099

2,320

1,099

1,099

1,099

1,099

499

1,099

1,099

499

499

299

99

527

528

528

527

528

528

499

527

528

1,999

1,999

1,999

526

528

528

528

1,099

499

527

527

499

499

527

999

299

499

999

528

299

1,499

1,099

1,099

599

499

699

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Hair ur Rehman

Hair ur Rehman

Koksuai Computers

Koksuai Computers

Koksuai Computers

Koksuai Computers

Koksuai Computers

Koksuai Computers

Koksuai Computers

Koksuai Computers

Hair ur Rehman

Koksuai Computers

Koksuai Computers

Koksuai Computers

Koksuai Computers

Babu And Bros

Koksuai Computers

Koksuai Computers

Babu And Bros

Babu And Bros

Koksuai Computers

BABU AND BROS

Koksuai Computers

Koksuai Computers

Koksuai Computers

Koksuai Computers

Koksuai Computers

Koksuai Computers

Babu And Bros

Koksuai Computers

Koksuai Computers

Babu And Bros

Babu And Bros

Babu And Bros

Koksuai Computers

Koksuai Computers

Koksuai Computers

Koksuai Computers

Koksuai Computers

Koksuai Computers

Koksuai Computers

Koksuai Computers

Mumtaz Kabaria

Mumtaz Kabaria

Koksuai Computers

Babu And Bros

Mumtaz Kabaria

Mumtaz Kabaria

Babu And Bros

Koksuai Computers

Mumtaz Kabaria

Babu And Bros

Koksuai Computers

Koksuai Computers

Koksuai Computers

Mumtaz Kabaria

Babu And Bros

177


Desktop System

Desktop System

Laptop

Laptop

Laptop

Laptop

Laptop

Laptop

System

System

Server

Desktop System

Printer

Printer

System

Printer

Hp Proliant Ml 350 G6

Desktop System

Server

Desktop System

IBM System

IBM System

Printer

Printer

Server

Server

Desktop System

Desktop System

Desktop System

Sub-Total

47,724

47,724

60,000

60,000

68,200

83,984

83,984

83,500

50,000

50,000

470,085

50,000

42,000

37,500

137,540

72,200

1

1

1

1

1

1

1

1

135,043

135,043

56,090

56,089

56,090

10,544,843

47,723

47,723

59,999

59,999

68,199

83,983

83,983

83,499

49,999

49,999

470,084

49,999

41,999

37,499

137,539

72,199

-

-

-

-

-

-

-

-

122,182

120,126

56,089

56,088

56,089

10,497,129

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

12,861

14,917

1

1

1

47,714

500

500

1,100

1,100

1,100

1,100

1,100

1,100

528

500

500

700

300

400

500

1,100

1,500

500

1,500

529

500

500

300

400

500

1,500

700

529

500

136,054

499

499

1,099

1,099

1,099

1,099

1,099

1,099

527

499

499

699

299

399

499

1,099

1,499

499

1,499

528

499

499

299

399

(12,361)

(13,417)

699

528

499

88,340

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Koksuai Computers

Koksuai Computers

Koksuai Computers

Koksuai Computers

Koksuai Computers

Koksuai Computers

Koksuai Computers

Koksuai Computers

Koksuai Computers

Koksuai Computers

Koksuai Computers

Babu And Bros

Koksuai Computers

Koksuai Computers

Koksuai Computers

Koksuai Computers

Koksuai Computers

Koksuai Computers

Koksuai Computers

Koksuai Computers

Koksuai Computers

Koksuai Computers

Koksuai Computers

Koksuai Computers

Koksuai Computers

Koksuai Computers

Babu And Bros

Koksuai Computers

Koksuai Computers

Leasehold Improvements

Refurbishment Work At Okara Branch





Branding & Signage At Sukkur

Signage Work

Renovation Work At Layyah

Signage Work Chishtian

Branding Work Chistian

Renovation Work At Razabad & AO-CP-2

Sign Board

Steel Work

Branding & Signage At Kamalabad

Signage & Branding Work At Razaabad

Renovation Work At Head Of�ce

Signage Work At Gujrawala Branch

Renovation Work At F-7

Signage Work

Signage Work At Jhang Branch

Branding Cost At Jhang Branch

Branding Work At Head Of�ce



5,000

6,000

6,000

8,000

10,000

22,982

24,149

30,000

30,100

37,051

40,000

40,154

47,640

50,653

51,717

64,770

66,038

68,601

76,194

79,087

102,050

157,284

199,504

363,947

4,345

5,214

5,214

6,952

8,690

3,557

14,374

29,999

15,050

18,525

1,905

25,813

21,551

7,839

10,467

64,769

33,019

9,800

46,261

44,251

59,529

99,239

45,126

86,654

655

786

786

1,048

1,310

19,425

9,775

1

15,050

18,526

38,095

14,341

26,089

42,814

41,250

1

33,019

58,801

29,933

34,836

42,521

58,045

154,378

277,293

1,700

1,350

2,400

500

1,500

1,500

500

1,500

200

150

29,201

1,500

25,000

1,500

1,500

-

4,200

36,400

3,000

9,333

9,334

-

-

-

1,045

564

1,614

(548)

190

(17,925)

(9,275)

1,499

(14,850)

(18,376)

(8,894)

(12,841)

(1,089)

(41,314)

(39,750)

(1)

(28,819)

(22,401)

(26,933)

(25,503)

(33,187)

(58,045)

(154,378)

(277,293)

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Insurance

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Malik Sadiq

Ali Raza

Rizwan

Haneef

Malik Wood Wokrs

Shaheen Enterprise

Shaheen Enterprise




Jubilee Inusrance


Rizwan

Shair Ali


National Traders

Attiqu Scarp

Koksuai Computers

Rizwan

Mehrban Kabar Center


National Traders

National Traders

National Traders

178



Shujabad



Renovation Work At Sukkur

Renovation Work At Chishtian

Renovation Work At Razabaad


Shujabad

Renovation Work At Kamalabad

Renovation Work At Ghotki



Refurbishment Work At

Jhang Branch


Sub-Total

Grand Total

411,892

493,064

554,490

633,965

810,150

832,400

835,988

900,000

986,126

1,009,190

1,099,795

1,127,428

1,622,988

1,870,177

3,191,744

17,966,318

49,919,619

264,788

493,063

402,665

520,429

810,149

445,929

835,987

899,999

986,125

1,009,189

1,099,794

1,127,427

1,622,987

1,870,176

3,191,743

16,248,593

46,992,182

147,104

1

151,825

113,536

1

386,471

1

1

1

1

1

1

1

1

1

1,717,725

2,927,437

42,210

35,000

56,825

64,965

9,000

26,900

22,000

-

37,750

15,600

10,500

-

-

9,333

-

462,351

5,043,689

(104,894)

34,999

(95,000)

(48,571)

8,999

(359,571)

21,999

(1)

37,749

15,599

10,499

(1)

(1)

9,332

(1)

(1,255,374)

2,116,252

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

Auction

National Traders

Asif Shesha Shop

National Traders

National Traders

Shaheen Enterprise



National Traders

Zahid Old Scrap Shop

Shair Ali

Shaheen Enterprise

National Traders

National Traders


National Traders

Note:

For better understanding and accurate presentation, amounts in the annexure have been presented to the nearest Rupee.

177


178


PUNJAB

06

08

07

05

09

NO. OF RURALLOCATIONS

145

NO. OF URBANLOCATIONS

61

NO. OF OUTSTANDINGCUSTOMERS

485,505

NO. OF DEPOSITORS

1,220,813

NO. OF FEMALECUSTOMERS

160,629

BRANCHES DISTRICT

RawalpindiKamalabadTaxilaAttockIslamabadRavi RoadShiekhupuraMuridkaDaroghawalaBatapur Bund RoadRaiwind Zarar Shaheed RdPatokiTownship LahoreNarang MandiNankana SahibFaisalabadSammundri ChiniotNishatabadOkaraDeepalpur Renala Khurd RazaabadHa�zabad NorawalGujranwalaFareed Town Kamonkey GujratKharianSialkotPasroorWazirabad DaskaJehlumSohawaDenaChakwalSargodhaBhalwal Khushab SillanwaliSahiwal SargodhaKot MominMandi BahauddinPhaliaMianwaliJalalpur MultanShujahabadLodhranKehroorpacca Dunyapur Mailsi VehariTibba Sultanpur MuzaffargarhAlipurDG Khan

Jampur Fazilpur Taunsa Sharif RajanpurAhmedpur-EastUch SharifMITHAN KOTBahawalpurYazman Head Rajkan Rahim Yar KhanSadiqabad Kotsamba Liaqatpur Feroza Khanbela Zahir PirKhanpurPakpatanArifwala HasilpurBurewala BahawalnagarMinchnabad Haronabad Chistian Fort AbbasDharanwalaJhangGojra Shorkot CitySahiwalCheecha Watni KhanewalMian ChannuKabir WalaAbdul HakeemKamaliaPirmahalToba Tek SinghKot AdduChowk SarwarLayyaKaror Lalesan BhakkarDarya KhanMankiraFatehpurKotsultan

PUNJAB

06

08

07

05

09


145

NO. OF URBANLOCATIONS

61

NO. OF OUTSTANDINGCUSTOMERS

485,505

NO. OF DEPOSITORS

1,220,813

NO. OF FEMALECUSTOMERS

160,629

BRANCHES DISTRICT

RawalpindiKamalabadTaxilaAttockIslamabadRavi RoadShiekhupuraMuridkaDaroghawalaBatapur Bund RoadRaiwind Zarar Shaheed RdPatokiTownship LahoreNarang MandiNankana SahibFaisalabadSammundri ChiniotNishatabadOkaraDeepalpur Renala Khurd RazaabadHa�zabad NorawalGujranwalaFareed Town Kamonkey GujratKharianSialkotPasroorWazirabad DaskaJehlumSohawaDenaChakwalSargodhaBhalwal Khushab SillanwaliSahiwal SargodhaKot MominMandi BahauddinPhaliaMianwaliJalalpur MultanShujahabadLodhranKehroorpacca Dunyapur Mailsi VehariTibba Sultanpur MuzaffargarhAlipurDG Khan

Jampur Fazilpur Taunsa Sharif RajanpurAhmedpur-EastUch SharifMITHAN KOTBahawalpurYazman Head Rajkan Rahim Yar KhanSadiqabad Kotsamba Liaqatpur Feroza Khanbela Zahir PirKhanpurPakpatanArifwala HasilpurBurewala BahawalnagarMinchnabad Haronabad Chistian Fort AbbasDharanwalaJhangGojra Shorkot CitySahiwalCheecha Watni KhanewalMian ChannuKabir WalaAbdul HakeemKamaliaPirmahalToba Tek SinghKot AdduChowk SarwarLayyaKaror Lalesan BhakkarDarya KhanMankiraFatehpurKotsultan

181


03

04

01

02

NO. OF BRANCHES

163

NO. OF PBS

36

NO. OF SOS

7

NO. OF ATMS

76

AZAD JAMMUKASHMIRChinariMuzaffarabad

Garam ChashmaShagrameYarkhoonHaripurAbbottabadMardanNowsheraPeshawarMansheraBishamDera Ismail KhanSukkurShikarpur Madeji GhotkiJacobabadKhandhkotDaharkiPano AqilLarkanaWagan Ratodero RanipurKhairpur Naushero FerozKandiaro Mehrabpur DaduMehar Thari MirwahNawabshahSakrand Tando JamHalaHyderabadAminabadBadinTando Muhammad KhanMirpursakroThattaMirpurkhasDigri Tando AllayarMithiIslamkot Diplo ShedadpurShahpur UmerkotKunri SangharKarimabadGardenMetrovilleKorangiNew KarachiLandhiMalirBaldiaCliftonMehmoodabad Ibrahim HaideriGulshan e Noor

BALOCHISTANQuettaDera Murad JamaliSibiUSTA MOHAMMADGwadar

SINDHChitralBooniMastujShoghore

GILGITBALTISTANGilgit HunzaGahkuchGupisNagarAstoreSostPhunderTaus YasinChatorkhandDunyor ImmitChilasHunderSkarduKhapluThagusShigarKharmangRondoDhaghoniGamba

KHYBERPAKHTUNKHWAChitralBooniMastujShoghoreGaram ChashmaShagrameYarkhoonHaripurAbbottabadMardanNowsheraPeshawarMansheraBishamDera Ismail Khan

03

04

01

02

NO. OF BRANCHES

163

NO. OF PBS

36

NO. OF SOS

7

NO. OF ATMS

76


160,629

AZAD JAMMUKASHMIRChinariMuzaffarabad

Garam ChashmaShagrameYarkhoonHaripurAbbottabadMardanNowsheraPeshawarMansheraBishamDera Ismail KhanSukkurShikarpur Madeji GhotkiJacobabadKhandhkotDaharkiPano AqilLarkanaWagan Ratodero RanipurKhairpur Naushero FerozKandiaro Mehrabpur DaduMehar Thari MirwahNawabshahSakrand Tando JamHalaHyderabadAminabadBadinTando Muhammad KhanMirpursakroThattaMirpurkhasDigri Tando AllayarMithiIslamkot Diplo ShedadpurShahpur UmerkotKunri SangharKarimabadGardenMetrovilleKorangiNew KarachiLandhiMalirBaldiaCliftonMehmoodabad Ibrahim HaideriGulshan e Noor

BALOCHISTANQuettaDera Murad JamaliSibiUSTA MOHAMMADGwadar

SINDHChitralBooniMastujShoghore

GILGITBALTISTANGilgit HunzaGahkuchGupisNagarAstoreSostPhunderTaus YasinChatorkhandDunyor ImmitChilasHunderSkarduKhapluThagusShigarKharmangRondoDhaghoniGamba

KHYBERPAKHTUNKHWAChitralBooniMastujShoghoreGaram ChashmaShagrameYarkhoonHaripurAbbottabadMardanNowsheraPeshawarMansheraBishamDera Ismail Khan

182


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OUTREACH | SUSTAINABILITY | IMPACT | TRANSPARENCY Report-201… · working practice, innovative ideas and the of enterprise. 3. INTEGRITY ... First Family App nominated in EFMA Awards