IAS-26

Accounting and Reporting by Retirement Benefit

Scope
 This Standard shall be applied in the financial statements of retirement benefit plans
(defined contribution or defined benefits) such as pension schemes, super-
annuation schemes, or retirement benefit schemes where such financial statements
are prepared and. This Standard applies regardless of whether such a fund is created
and regardless of whether there are trustees.

 All other Standards apply to the financial statements of retirement benefit plans to
the extent that they are not superseded by this Standard.

 IAS 19 Employee Benefits is concerned with the determination of the cost of

retirement benefits in the financial statements of employers having plans. Hence this
Standard complements IAS 19.

 Retirement benefit plans with assets invested with insurance companies are subject
to the same accounting and funding requirements as privately invested
arrangements. Accordingly, they are within the scope of this Standard unless the
contract with the insurance company is in the name of a specified participant or a
group of participants and the retirement benefit obligation is solely the responsibility
of the insurance company.

 This Standard does not deal with other forms of employment benefits such as
employment termination indemnities, deferred compensation arrangements, long-
service leave benefits, special early retirement or redundancy plans, health and
welfare plans or bonus plans. Government social security type arrangements are
also excluded from the scope of this Standard.

 This IAS is applicable to formal and informal both types of plans and use the word
trustees for fund managers whether there exist any trust deed or not.

Definitions
Retirement benefit plans are arrangements whereby an entity provides benefits for
employees on or after termination of service (either in the form of an annual income or as
a lump sum) when such benefits, or the contributions towards them, can be determined
or estimated in advance of retirement from the provisions of a document or from the
entity’s practices.

Defined contribution plans are retirement benefit plans under which amounts to be paid
as retirement benefits are determined by contributions to a fund together with investment
earnings thereon.

Defined benefit plans are retirement benefit plans under which amounts to be paid as
retirement benefits are determined by reference to a formula usually based on
employees’ earnings and/or years of service.

Where the plans have hybrid characteristics that will be classified as defined benefit
plans. Funding is the transfer of assets to an entity (the fund) separate from the
employer’s entity to meet future obligations for the payment of retirement benefits.

Page 1 of 31
For the purposes of this Standard the following terms are also used:
Participants are the members of a retirement benefit plan and others who are entitled to
benefits under the plan.

Net assets available for benefits are the assets of a plan less liabilities other than the
actuarial present value of promised retirement benefits.

Actuarial present value of promised retirement benefits is the present value of the
expected payments by a retirement benefit plan to existing and past employees,
attributable to the service already rendered.

Vested benefits are benefits, the rights to which, under the conditions of a retirement
benefit plan, are not conditional on continued employment.

Defined Contribution Plans

The financial statements of a defined contribution plan shall contain a statement of net
assets available for benefits and a description of the funding policy.
The objective of reporting by a defined contribution plan is periodically to provide
information about the plan and the performance of its investments. That objective is
usually achieved by providing financial statements including the following:
(a) A description of significant activities for the period and the effect of any
changes relating to the plan, and its membership and terms and conditions;
(b) Statements reporting on the transactions and investment performance for the
period and the financial position of the plan at the end of the period; and
(c) a description of the investment policies.

Defined Benefit Plans

The financial statements of a defined benefit plan shall contain either:
(a) A statement that shows:
i) The net assets available for benefits;
ii) The actuarial present value of promised retirement benefits, distinguishing
between vested benefits and non-vested benefits; and
iii) the resulting excess or deficit; or
(b) a statement of net assets available for benefits including either:
i) a note disclosing the actuarial present value of promised retirement benefits,
distinguishing between vested benefits and non-vested benefits; or
ii) a reference to this information in an accompanying actuarial report.

If an actuarial valuation has not been prepared at the date of the financial statements,
the most recent valuation shall be used as a base and the date of the valuation disclosed.

The actuarial present value of promised retirement benefits shall be based on the
benefits promised under the terms of the plan on service rendered to date using either
current salary levels or projected salary levels with disclosure of the basis used. The effect
of any changes in actuarial assumptions that have had a significant effect on the
actuarial present value of promised retirement benefits shall also be disclosed.

The financial statements shall explain the relationship between the actuarial present
value of promised retirement benefits and the net assets available for benefits, and the
policy for the funding of promised benefits.

Under a defined benefit plan, the payment of promised retirement benefits depends on
the financial position of the plan and the ability of contributors to make future
contributions to the plan as well as the investment performance and operating efficiency
of the plan.

Page 2 of 31
A defined benefit plan needs the periodic advice of an actuary to assess the financial
condition of the plan, review the assumptions and recommend future contribution levels.

The objective of reporting by a defined benefit plan is periodically to provide information

about the financial resources and activities of the plan that is useful in assessing the
relationships between the accumulation of resources and plan benefits over time. This
objective is usually achieved by providing financial statements including the following:
(a) A description of significant activities for the period and the effect of any
changes relating to the plan, and its membership and terms and conditions;
(b) Statements reporting on the transactions and investment performance for the
period and the financial position of the plan at the end of the period;
(c) Actuarial information either as part of the statements or by way of a separate
report; and
(d) a description of the investment policies.

Actuarial Present Value of Promised Retirement Benefits

The present value of the expected payments by a retirement benefit plan may be
calculated and reported using current salary levels or projected salary levels up to the
time of retirement of participants.

The reasons given for adopting a current salary approach include:

(a) the actuarial present value of promised retirement benefits, being the sum of the
amounts presently attributable to each participant in the plan, can be calculated
more objectively than with projected salary levels because it involves fewer
assumptions;
(b) increases in benefits attributable to a salary increase become an obligation of the
plan at the time of the salary increase; and
(c) the amount of the actuarial present value of promised retirement benefits using
current salary levels is generally more closely related to the amount payable in the
event of termination or discontinuance of the plan.

Reasons given for adopting a projected salary approach include:

(a) Financial information should be prepared on a going concern basis, irrespective of
the assumptions and estimates that must be made;
(b) Under final pay plans, benefits are determined by reference to salaries at or near
retirement date; hence salaries, contribution levels and rates of return must be
projected; and
(c) Failure to incorporate salary projections, when most funding is based on salary
projections, may result in the reporting of an apparent over funding when the plan
is not over funded, or in reporting adequate funding when the plan is under-funded.

The actuarial present value of promised retirement benefits based on current salaries are
disclosed in the financial statements of a plan to indicate the obligation for benefits earned
to the date of the financial statements. The actuarial present value of promised retirement
benefits based on projected salaries is disclosed to indicate the magnitude of the potential
obligation on a going concern basis which is generally the basis for funding. In addition to
disclosure of the actuarial present value of promised retirement benefits, sufficient
explanation may need to be given so as to indicate clearly the context in which the
actuarial present value of promised retirement benefits should be read. Such explanation
may be in the form of information about the adequacy of the planned future funding and
of the funding policy based on salary projections. This may be included in the financial
statements or in the actuary’s report.

Page 3 of 31
Frequency of Actuarial Valuations
In many countries, actuarial valuations are not obtained more frequently than every three
years. If an actuarial valuation has not been prepared at the date of the financial
statements, the most recent valuation is used as a base and the date of the valuation
disclosed.

Financial Statement Content

For defined benefit plans, information is presented in one of the following formats, which
reflect different practices in the disclosure, and presentation of actuarial information:
(a) A statement is included in the financial statements that show the net assets available
for benefits, the actuarial present value of promised retirement benefits, and the
resulting excess or deficit. The financial statements of the plan also contain
statements of changes in net assets available for benefits and changes in the
actuarial present value of promised retirement benefits. The financial statements
may be accompanied by a separate actuary’s report supporting the actuarial
present value of promised retirement benefits;
(b) Financial statements that include a statement of net assets available for benefits
and a statement of changes in net assets available for benefits. The actuarial
present value of promised retirement benefits is disclosed in a note to the
statements. The financial statements may also be accompanied by a report from
an actuary supporting the actuarial present value of promised retirement benefits;
and
(c) Financial statements that include a statement of net assets available for benefits
and a statement of changes in net assets available for benefits with the actuarial
present value of promised retirement benefits contained in a separate actuarial
report.
In each format a trustees’ report in the nature of a management or directors’ report
and an investment report may also accompany the financial statements.

Valuation of Plan Assets

Retirement benefit plan investments shall be carried at fair value. In the case of
marketable securities fair value is market value. Where plan investments are held for
which an estimate of fair value is not possible disclosure shall be made of the reason why
fair value is not used. Where plan investments are held for which an estimate of fair
value is not possible, disclosure is made of the reason why fair value is not used.

Disclosure
In addition to the statements and disclosures described above, the report of a retirement
benefit plan is required to contain the following information.
a) A statement of changes in net assets available for benefits.
b) A summary of significant accounting policies
c) A description / type of the plan and the effect of any changes in the plan during
the period
d) A description of the funding policy
e) For defined obligation plans, the actuarial present value of the promised retirement
benefits
f) For defined obligation plans, a description of the significant actuarial assumptions
made
g) The participants and whether they contribute to the plan
h) Retirement benefits promised
i) Termination terms

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PRACTICE QUESTIONS
Q–1
SOGO Limited operates an approved funded gratuity scheme for all its employees. Benefits under the scheme
become vested after 5 years of service. No benefit is payable to an employee if he leaves before 5 years of
service. A total of 752 employees were eligible for the benefits under the fund as of December 31, 2007.
Following is the trial balance of the Fund as of June 30, 2007:
Debit Credit
Amounts in Rupees
Cash at bank - current account 17,930,120
Receivable from SOGO Limited 1,147,150
Defense Savings Certificate 102,133,664
Term Finance Certificates 11,832,089
Term Deposits 6,414,058
Investment – SUN Limited 17,594,893
Investment – PEACE Company Limited 587,169
Investment - NIT Units 16,911,510
Due to outgoing members 4,301,017
Accrued expenses 3,822
Withholding tax payable 61,251
Members Fund 142,472,122
Profit on investments 23,389,251
Dividend income 2,696,399
Contribution for the year 10,623,106
Transferred / paid to outgoing members 12,432,973

Bank charges 3,342

Audit fee 10,000
Liabilities no more payable 3,450,000
186,996,968 186,996,968

Following are the details of investments and income thereon:

During the year 2007
Balance as at
Profit / interest Principal Profit / interest
July 01, 2006
Addition accrued realized realized
Government Securities:
Defense Savings Certificate 87,812,855 - 21,376,809 (1,600,000) (5,456,000)
Unlisted Securities and deposits:
Term Finance Certificates 1,655,223 (12,873,068) (1,893,722)
19,943,656 5,000,000
Term Deposits 357,219 (5,300,000) (227,792)
11,584,631 -
Listed Securities:
SUN Limited 8,220,957 9,373,936 - - -
PEACE Limited 587,169 - - - -
- - - -
NIT Units 16,911,510

The following gains/(losses) on restatement of investments at their fair values, have not been accounted for:
Rupees
SUN Limited (784,518)
PEACE Limited 317,728
4,026,551
NIT Units

Required:
Prepare the following in accordance with the requirements of International Accounting Standards:
(a) Statement of Net Assets Available for Benefits along with the note on investments.
(b) Statement of changes in Net Assets Available for Benefits. (15)

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 Q–2
Sigma Limited (SL) operates an approved and funded gratuity plan for its management staff who have
completed the minimum qualifying period of three years’ service. The plan is administered by the trustees
nominated under the trust deed. Trial balance of the fund as at 30 June 2014 is as under:
Debit Credit
Rs. (000) Rs. (000)
Balance with bank 500 --
Receivables from SL 800 --
Investment in shares available for sale-as at July 01, 2013 8,265
Defense saving certificates (DSC’s), including accrued Interest 14,235
Opening balance of member’s fund 18,287
Amount payable to outgoing members 150
Accrued expenses 15
Profit on DSC’s 1,698
Dividend from investment available for sale 1,380
Contribution for the year 3,000
Gratuity paid / payable to outgoing members 700
Audit fee payable 23
Bank charges 7
24,530 24,530

The investments as shown above costed Rs. 8,450,000. The market value of these investments as at 30 June 2014
amounted to Rs. 8,720,000.
Required: For the year ended 30 June 2014, prepare the following in accordance with the requirements of
International Financial Reporting Standards.
(a) Statement of net assets available for benefits; and (05)
(b) Statement of changes in net assets available for benefits. (04)

Answers A – 1
(a)
SOGO Limited Staff Gratuity Fund
Statement of Net Assets Available for Benefits
As at December 31, 2007
Note 2007
Rupees
ASSETS
Investments 1 159,033,144
Receivable from SOGO Limited 1,147,150
Cash at bank in current accounts 17,930,120
178,110,414
LIABILITIES
Due to outgoing members 4,301,017
Accrued expenses 3,822
Withholding tax payable 61,251
4,366,090
NET ASSETS 173,744,324
REPRESENTED BY:
Members' Fund (Rs. 142,472,122 + Rs. 27,712,441) 170,184,563
Surplus on re-measurement of investments available for sale 3,559,761
173,744,324

Page 6 of 31
 (b) SOGO Limited Staff Gratuity Fund
Statement of Changes in Net Assets Available for Benefits
For the year ended December 31, 2007 2007
Income Rupees

Contribution during the year 10,623,106

Profit from investments 23,389,251
Dividend income 2,696,399
Liabilities no more payable 3,450,000
40,158,756
Expenditure
Transferred / paid to outgoing members (12,432,973)
Bank charges (3,342)
Audit fee (10,000)
(12,446,315)
Net Income for the year 27,712,441

Profit / Profit /
Principal Balance as
Addition interest Fair value interest
Balance as at realized at
W–1 during the accrued gain / realized
July 01, 2006 during the June 30,
year during the (loss) during the
year 2007
year year
HELD TO
MATURITY
Government
Securities
Defense Saving
87,812,855 - 21,376,809 - (1,600,000) (5,456,000) 102,133,664
Certificates

Unlisted
Securities and
Deposits
Term Finance
19,943,656 5,000,000 1,655,223 - (12,873,068) (1,893,722) 11,832,089
Certificates
Term Deposit 11,584,631 - 357,219 - (5,300,000) (227,792) 6,414,058
119,341,142 5,000,000 23,389,251 - (19,773,068) (7,577,514) 120,379,811
AVAILABLE FOR
SALE Listed
Securities
SUN Ltd. 8,220,957 9,373,936 (784,518) - 16,810,375
PEACE Ltd. 587,169 - 317,728 - 904,897
NIT Units 16,911,510 - 4,026,551 - - 20,938,061
25,719,636 9,373,936 - 3,559,761 - - 38,653,333
145,060,778 14,373,936 23,389,251 3,559,761 (19,773,068) (7,577,514) 159,033,144

Page 7 of 31
A–2
a) Sigma Limited-Management staff gratuity fund
Statement of net assets available for benefits as at June 30, 2014
Rs. (000) Rs. (000)
Assets
Investments (14,235+8,720) 22,955
Receivables from Sigma Limited 800
Balance with banks 500
Total assets available for benefits 24,255
Liabilities
Payable to outgoing members
Accrued expenses 150
15
165
Net assets 24,090

Represented by: -
Member’s fund 23,820
Surplus on re-measurement of investments 270
available for sale (8,450-8,265)
24,090
b) Sigma Limited –Management staff gratuity fund
Statement of changed in net assets available for benefits
For the year ended June 30, 2014

Rs. (000) Rs. (000)

General reserve fund
Balance at July 01, 2013 18,287
Contribution during the year 3,000
Gratuity paid/payable to outgoing (700)
members
20,587
Income

Profit from defense saving certificates 1,698

Dividend on investments 1,380
Reversal of previous years impairment (8,450-8,265) 185
3,263
Expenses
Audit fee 23
Bank charges 7
(30)
Balance at June 30, 2014 23,820

Page 8 of 31
 XYZ ENERGY PAKISTAN (PRIVATE) LIMITED EMPLOYEES GRATUITY FUND
STATEMENT OF NET ASSETS AVAILABLE FOR DISTRIBUTION
AS AT JUNE 30, 2012

Note 2012 2011

(Rupees) (Rupees)

Investments
Held to maturity - at amortized cost
Defence saving certificates 10 28,000,000 58,000,000

Current assets
Interest receivable 11 521,964 1,663,439
Due from Sponsors 9,350,523 5,881,847
Balance with bank - current account 54,586,973 17,201,254
64,459,460 24,746,540

Total net assets 92,459,460 82,746,540

The annexed notes from 1 to 15 form an integral part of these financial statements.

TRUSTEE TRUSTEE
 XYZ ENERGY PAKISTAN (PRIVATE) LIMITED EMPLOYEES GRATUITY FUND
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR DISTRIBUTION
FOR THE HALF YEAR ENDED JUNE 30, 2012

Note 2012 2011

(Rupees) (Rupees)

Balance at beginning of the year 82,746,540 62,828,638

Contributions during the year 12 9,016,354 18,381,913

Income transferred from revenue account 13 3,968,222 7,282,521
12,984,576 25,664,434

Gratuity paid to outgoing members 3,271,656 5,160,702

Profit paid to outstanding members - 585,830
(3,271,656) (5,746,532)

Balance at end of the year 92,459,460 82,746,540

The annexed notes from 1 to 15 form an integral part of these financial statements.

1
TRUSTEE TRUSTEE
 XYZ ENERGY PAKISTAN (PRIVATE) LIMITED EMPLOYEES GRATUITY FUND
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR DISTRIBUTION
FOR THE HALF YEAR ENDED JUNE 30, 2012

1. INTRODUCTION
The gratuity fund was established on January 15, 2006, and has been accorded approval
under the Income Tax Ordinance 2001 on June 14, 2007. Funds consist of contribution of
company and income arising from investment thereof.
Payments are made to the employees on retirement, resignation and discharge as
specified in the rules of the trust.

2. FUNDING POLICY
Contribution is made by the company under the provisions of the scheme.

3. ACCOUNTING CONVENTION
These financial statements have been prepared under the historical cost convention
except for the certain investments that are carried at amortized cost.

4. TAXATION
The income of the fund is exempt from tax under clause 57(3) of the second schedule to
the income tax Ordinance 2001

5. EXPENSE
Expenses incurred for the administration of fund with the exception of bank charges are
borne by the company.

6. INVESTMENTS
The fund determines the appropriate classification of its investments in accordance with
the requirements of the International Accounting Standard 39; Financial Instruments;
Recognition and Measurement (IAS 39) at the time of purchase.

Investments are initially recognized at cost inclusive of transaction cost. Investments

categorized as held to maturity are stated at amortized cost using the effective interest
rate method. Investments are derecognized when the right to receive cash flows from the
investments have expired or have been transferred and the Fund has transferred
substantially all risks and rewards of ownership.

7. PROVISIONS
Provisions are recognized when fund has a legal or constructive obligation as a result of
past event and it is probable that an out flow of resources will be resulted to settle the
obligation and a reliable estimate of the amount can be made.

8. REVENUE RECOGNITION
Income from saving account is recognized on accrual basis.
Income from defence saving certificates is accrued using effective interest rate method.

9. PAYMENT OF BENEFITS
Gratuity is payable to every permanent employee of the company on leaving the
company's service. The benefits are assumed to be vested on end of each month of
completed service.
 2012 2011
(Rupees) (Rupees)

10. Investments - Held to maturity Maturity Date Face Value

Defence saving certificates 3/14/2012 - 30,000,000
Defence saving certificates 11/18/2012 9,000,000 9,000,000
Defence saving certificates 4/22/2013 9,000,000 9,000,000
Defence saving certificates 3/21/2014 10,000,000 10,000,000
28,000,000 58,000,000

11. INTEREST RECEIVABLE

Opening balance 1,663,439 2,063,348
Add: Profit for the year 3,968,222 7,282,521
5,631,661 9,345,869
Less: Received during the year (5,109,697) (7,682,430)
521,964 1,663,439

12. CONTRIBUTION TO GRATUITY FUND 9,016,354 18,381,913

This represents amount contributed by the company on maturity basis.

13. REVENUE
Income on investments - Held to maturity 3,968,288 7,282,521
Less: Bank charges (66) -
3,968,222 7,282,521

14. DATE OF AUTHORIZATION

The financial statements were authorised for issue on by the Board of
Trustees of the fund.

15. GENERAL
Figures have been rounded off to the nearest Rupee.
Figures of previous years have been re-arranged and re-grouped wherever necessary for
the purpose of comparison.

TRUSTEE TRUSTEE
 XYZ
STAFF PROVIDENT FUND TRUST
STATEMENT OF NET ASSETS AVAILABLE FOR DISTRIBUTION
AS AT JUNE 30, 2012

Note 2012 2011

(Rupees) (Rupees)
NON CURRENT ASSETS
Investments - Held to maturity 4 5,400,000 7,500,000

CURRENT ASSETS
Current portion of investments - Held to maturity 4 2,100,000 -
Investments at fair value through profit and loss 5 2,450,709 2,308,756
Accrued interest 2,454,169 1,865,549
Loan to members 6 418,225 487,775
Cash and bank balances 7 198,918 447,253
7,622,021 5,109,333

CURRENT LIABILITIES
Provident fund payable to outgoing members 8 - 137,977
Profit payable to ex-members 113,791 113,791
Accrued and other liabilities 15,000 11,000
128,791 262,768

Net current assets 7,493,230 4,846,565

Net assets available for distribution 12,893,230 12,346,565

The annexed notes 1 to 12 form an integral part of these financial statements.

TRUSTEE TRUSTEE
 XYZ
OVIDENT FUND TRUST
NET ASSETS AVAILABLE FOR DISTRIBUTION
AR ENDED JUNE 30,2012

Note 2012 2011

(Rupees) (Rupees)

Balance at the beginning of the year 12,346,565 10,776,805

Contributions during the year 9 900,874 913,674

transferre 10 780,904 1,414,213
1,681,778 2,327,887

Payments made to out going members (1,135,113) (758,127)

Balance at the end of the year 12,893,230 12,346,565

annexed

TRUSTEE TRUSTEE
 XYZ
STAFF PROVIDENT FUND TRUST
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2012

1. THE FUND AND ITS LEGAL STATUS

The fund was established on February 28, 1994 wide trust deed executed on February 28, 1994. Fund
consist of contribution from XYZ, the employees and income arising from investment thereof. The
official address of the trust is 111, Ferozpur Road, Lahore.

Payments are made to the employees on retirement, resignation and discharge as specified in the
rules of the trust.

2. FUNDING POLICY
Contribution is made by the PSRD and employees at the rate of 8% of the employees' basic salary
under the provisions of the scheme of the fund.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3.1 Accounting convention
These financial statements have been prepared under the historical cost convention except for
the certain investments that are carried at fair value.

3.2 Taxation
The fund has been recognized by the Directorate of Income Tax vide letter No. J/C-11/2002-03/843
under the provisions of Income Tax Ordinance 2001, hence no provision for the current tax has been
made according to the applicable tax rates.

3.3 Expenses
Expenses incurred for the administration of fund with the exception of bank charges are borne by
the PSRD.

3.4 Investments held to maturity

These are the investments with fixed maturity and the trust has a positive intent and ability to hold till
maturity. Held to maturity are initially measured at fair value plus transaction costs and subsequently
at amortized cost using effective interest rate method.

3.5 Investments at fair value through profit or loss

Investments which are acquired principally for the purpose of selling in the near term or investments
that are part of a portfolio of financial instruments exhibiting short term profit taking are designated
and classified as investments at fair value through profit or loss. These are stated at fair value with any
resulting gains or losses recognized directly in the revenue account.

Investments are derecognized when the right to receive cash flows from the investments have
expired or have been transferred and the Fund has transferred substantially all risks and rewards of

3.6 Provisions
Provisions are recognized when fund has a legal or constructive obligation as a result of past event
and it is probable that an out flow of resources will be resulted to settle the obligation and a reliable
estimate of the amount can be made.
 3.7 Revenue recognition
Income from saving certificates is accrued using effective interest rate method.
Income on term deposits and saving accounts with banks is proportionately accrued up to the
statement of net assets date.

3.8 Payment of benefits

Provident fund is payable to every permanent employee of the XYZ on leaving the XYZ's service.
The benefits are assumed to be vested on end of each month of completed service.

4. INVESTMENTS - HELD TO MATURITY

Certificate Date of
Note Face Value
Number Maturity
2012 2011
(Rupees) (Rupees)
NON CURRENT PORTION OF INVESTMENTS - HELD TO MATURITY:
Bank AL-Habib - Term Deposit Receipt 4.1 72084/7831 26-11-2013 2,000,000 2,000,000

Defence saving certificates 4.2 080028 29-08-2017 1,000,000 1,000,000

Defence saving certificates 4.3 251357 10-04-2019 500,000 500,000
Defence saving certificates 4.4 738919-23 26-12-2019 900,000 900,000
2,400,000 2,400,000

Engro Rupiya Certificate 4.5 02098 31-12-2014 1,000,000 1,000,000

Innovative Housing Finance Limited 4.6 0000000029 31-12-2012 - 840,000

0000000030 31-12-2012 - 1,260,000
- 2,100,000

5,400,000 7,500,000

CURRENT PORTION OF INVESTMENTS - HELD TO MATURITY:

Innovative Housing Finance Limited 4.6 0000000029 31-12-2012 840,000 -
0000000030 31-12-2012 1,260,000 -
2,100,000 -

Total investment - held to maturity 7,500,000 7,500,000

4.1 This represents the Term Deposit certificate issued by the Bank AL Habib Limited, Ichhra on
November 27, 2008 and is bearing profit @16% per annum
4.2 This represents the defence saving certificate of Rupees 1,000,000 purchased from National Savings
Centre, Ichhra on August 29, 2007.
4.3 This represents the defence saving certificate of Rupees 500,000 purchased from National Savings
Centre, Ichhra on April 10, 2009
4.4 This represents the defence saving certificates of Rupees 900,000 purchased from National Savings
Centre, Ichhra on April 10, 2009
4.5 These represent the 200 term Finance Certificates of Rs. 5000 each (Engro Rupiya Certificate)
bearing fixed Profit rate of 14.5% per year payable every 6 months for a tenor of 3 years.
4.6 This represents the certificates issued by the Innovative Housing Finance Limited (IHFL) after its merger
with Standard Chartered Investment Bank Limited (CSIBL) in accordance with payment plan
communicated vide CSIBL letter dated April 12, 2007 and are bearing profit @ 8% per annum.

Market value
5 INVESTMENTS AT FAIR VALUE THROUGH PROFIT AND LOSS 2012 2011
Note (Rupees) (Rupees)

National Investment Trust (NIT) Units 5.1 2,450,709 2,308,756

5.1 This represents the investment in 71834 units @ Rupees 32.14 per unit (2011: 71,834 @ Rupees 32.14
per unit ) of National Investment Trust (NIT) measured at market value prevailing at the reporting

6. LOANS TO MEMBERS
Opening balance 487,775 319,675
Loan granted during the year 238,400 429,000
726,175 748,675
Loan recovered during the year (307,950) (260,900)
418,225 487,775

7. CASH AND BANK BALANCES

Balances with banks:
- current account 37,021 37,021
- saving account 161,897 410,232
198,918 447,253

8. PROVIDENT FUND PAYABLE TO MEMBERS

Outgoing members:
Contributions - 65,208
Profit - 62,639
- 127,847
Deceased members:
Contributions - 9,836
Profit - 294
- 10,130
- 137,977

9. CONTRIBUTIONS TO PROVIDENT FUND 9.1 900,874 913,674

9.1 This represents the amount contributed by the employees and by the PSRD on monthly basis.
 2012 2011
Note (Rupees) (Rupees)
10. REVENUE ACCOUNT
Income:
Interest on held to maturity investments 725,297 665,127
Gain on investment at fair value through profit and loss account - 536,148
Dividend 284,358 287,337
Profit on PLS saving account 18,381 25,271
1,028,036 1,513,883
Expenditure:
Honorarium to staff 75,012 62,508
Loss on investment at fair value through profit and loss account 145,384 -
Bank charges 2,736 5,162
Printing and stationery 5,400 -
Audit Fee 18,600 32,000
247,132 99,670
780,904 1,414,213

11. DATE OF AUTHORIZATION

The financial statements were authorized for issue on by the Board of Trustees of
the fund.

12. GENERAL
Figures have been rounded off to the nearest Rupee.

TRUSTEE TRUSTEE