Question

Pakistan Bank Limited

Trial Balance
As on December 31, 2008

Debit Credit
Rs. in thousand
Cash in hand
- local currency 338,723
- foreign currency 146,988
Cash with SBP in
- local currency current account 1,607,761
- foreign currency current account 93,956
- foreign currency deposit account 231,818
Cash with other central banks in
- foreign currency current account 151,519
- foreign currency deposit account 98,633
Cash with NBP in
- local currency current account 115,136
National prize bonds 1,403
Balances with other banks
- in Pakistan
- on current account 25,850
- on deposit account 338,828
- Outside Pakistan
- on current account 254,419
- on deposit account 654,098
Call money lendings 258,979
Repurchase agreement lendings 986,687
Market treasury bills 3,886,091
Pakistan Investment Bonds 994,456
Government Bonds 8,534
Sukook Bonds 69,050
Investment in fully paid-up ordinary shares in listed companies 145,586
Investment in fully paid-up ordinary shares in unlisted companies 12,982
Listed Term Finance Certificates 129,166
Unlisted Term Finance Certificates 197,543
Investment in subsidiary companies 13,200
Investment in associated companies 258,646
Deficit on revaluation of investments 65,034
Loans, cash credits, running finance, etc. 13,160,705
Net investment in finance lease 1,428,982
Bills discounted and purchased (excluding treasury bills) 633,891
Provision for non-performing advances 223,646
Operating fixed assets 1,050,299
Other assets 563,305
Bills payable 309,113
Borrowings 839,413
Deposits and other accounts
- customers
- fixed deposits 8,885,122
- savings deposits 7,889,348

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 Question
- current accounts non-remunerative 5,823,401
- others 361,694
- financial institutions
- remunerative deposits 989,243
- non-remunerative deposits 2,131
Sub-ordinated loans 322,211
Deferred tax liabilities 192,134
Other liabilities 730,550
Share capital (10 million shares of Rs. 50 each) 500,000
Reserves 235,122
Unappropriated profit 138,684
Surplus on revaluation of assets 169,541
Markup/return/interest earned 2,119,147
Markup/return/interest expensed 1,523,289
Provision against non-performing loans and advances 69,769
Bad debts written off 154
Non markup/interest income 322,464
Non markup/interest expenses 591,805
Taxation 80,325
Exchange differences on translation of net investment
In foreign branches 4,578
30,122,576 30,122,576

Additional information:
(a) Exchange differences on translation of net investments in
foreign branches is to be transferred to Reserves
(b) 20% of profit after taxation is to be transferred to Statutory
Reserves.
(c) Dividend declared @ 10% not accounted in the books yet.
(d) An additional transfer of 5% is to be made after providing
For dividend.
(e) Surplus on revaluation of fixed assets is to be transferred to
Unappropriated Profit Rs. 2,607.

Required:
(a) Balance Sheet as on December 31, 2008;
(b) Profit and Loss Account for the year ended on Dec 31, 08
(c) Earnings Per Share for the year ended on December 31, 2008.
(Assume weighted average number of ordinary shares during
the year at 10 million)
(d) Statement of Changes in Equity, for the year ended on
December 31, 2008.
(e) Notes to the Financial Statements.

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 BS
Pakistan Bank Limited
Balance Sheet
As on December 31, 2008
Notes Rs.
(in thousand)
ASSETS
Cash and balances with treasury banks 6 2,785,937
Balances with other banks 7 1,273,195
Lendings to financial institutions 8 1,245,666
Investments 9 5,650,220
Advances 10 14,999,932
Operating fixed assets 1,050,299
Deferred tax assets -
Other assets 563,305
27,568,554
LIABILITIES
Bills payable 309,113
Borrowings 839,413
Deposits and other accounts 16 23,950,939
Sub-ordinated loans 322,211
Deferred tax liabilities 192,134
Other liabilities 19 780,550
26,394,360
NET ASSETS 1,174,194

REPRESENTED BY
Share capital 500,000
Reserves 283,767
Unappropriated profit 223,493
1,007,260
Surplus on revaluation of assets 166,934
1,174,194

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 PL
Pakistan Bank Limited
Profit and Loss Account
For the year ended on December 31, 2008
Notes Rs.
(in thousand)
Markup/Return/Interest earned 2,119,147
Markup/Return/Interest expensed 1,523,289
Net Markup/interest 595,858
Provision against non-performing loans & advances 69,769
Provision for diminution in the value of investments -
Bad debts written off 154
69,923
Net Markup/interest after provision 525,935
NON MARKUP/INTEREST INCOME 322,464
848,399
NON MARKUP/INTEREST EXPENSE 591,805
PROFIT BEFORE TAXATION 256,594
Taxation 80,325
PROFIT AFTER TAXATION 176,269
Unappropriated profit brought forward 138,684
Surplus on revaluation of fixed assets 2,607
Profit available for appropriation 317,560

Earnings per share 32

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 SOCE
Pakistan Bank Limited
Statement of Changes in Equity
For the year ended on December 31, 2008
Share Unappropriated
Reserves Total
Capital Profit
Rupees in thousand
Balance, as on January 1, 2008 500,000 235,122 138,684 873,806
Exchange differences on translation
of net investment in foreign branches 4,578 4,578
Surplus on revaluation of fixed assets 2,607 2,607
Profit after taxation 176,269 176,269
Transfer to statutory reserves 35,254 (35,254)
Additional transfer to reserves 8,813 (8,813)
Proposed dividend (50,000) (50,000)
Balance, as on December 31, 2008 500,000 283,767 223,493 1,007,260

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 Notes
Pakistan Bank Limited
Notes to the Financial Statements
For the year ended on December 31, 2008
Notes Rs.
(in thousand)
6. Cash and balances with treasury banks
Cash in hand
- local currency 338,723
- foreign currency 146,988
With State Bank of Pakistan in
- local currency current account 1,607,761
- foreign currency current account 93,956
- foreign currency deposit account 231,818
With other central banks in
- foreign currency current account 151,519
- foreign currency deposit account 98,633
With National Bank of Pakistan in
- local currency current account 115,136
National Prize Bonds 1,403
2,785,937

7. Balances with other banks

In Pakistan
- on current account 25,850
- on deposit account 338,828
Outside Pakistan
- on current account 254,419
- on deposit account 654,098
1,273,195

8. Lendings to financial institutions

Call money lendings 258,979
Repurchase agreement lendings 986,687
1,245,666

9. Investments
9.2 Investments by Segments
Federal Government Securities
Market treasury bills 3,886,091
Pakistan Investment Bonds 994,456
Government bonds 8,534
Sukook bonds 69,050
4,958,131
Fully Paid-up Shares in
Listed companies 145,586
Unlisted companies 12,982
158,568
TFCs/Debentures/Bonds/PTCs
Listed TFCs 129,166
Unlisted TFCs 197,543
326,709

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 Notes
Investment in subsidiary companies 13,200
Investment in associates companies 258,646
Total investments at cost 5,715,254
Surplus/(Deficit) on revaluation of investments (65,034)
Total investments at market value 5,650,220

10. Advances
Loans, cash credits, running finances, etc. 13,160,705
Net investment in finance lease 1,428,982
Bills discounted and purchased (excluding treasury bills) 633,891
15,223,578
Provision for non-performing loans & advances 223,646
14,999,932

11. Deposits and other accounts

Customers
Fixed deposits 8,885,122
Saving deposits 7,889,348
Current accounts – non-remunerative 5,823,401
Others 361,694
22,959,565
Financial institutions
Remunerative deposits 989,243
Non-remunerative deposits 2,131
991,374
23,950,939

19. Other Liabilities

Proposed dividends 50,000
Other liabilities 730,550
780,550

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