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Question

Bank of Karachi Limited


Trial Balance
As on December 31, 2008
Rs. Rs.
Cash and balances with treasury banks 9,286,453
Balances with other banks 4,243,984
Lendings to financial institutions 4,152,218
Investments 18,834,070
Advances 49,999,775
Operating fixed assets 3,500,997
Other assets 1,877,684
Bills payable 1,030,378
Borrowings 2,798,043
Deposits and other accounts 79,836,464
Sub-ordinated loans 1,074,035
Deferred tax liabilities 640,446
Other liabilities 2,435,165
Share capital 1,666,667
Reserves 783,740
Unappropriated profits 462,282
Surplus on revaluation of assets 565,138
Markup/Return/Interest earned 7,063,823
Markup/Return/Interest expensed 5,077,629
Provision against non-performing loans 232,563
Bad debts 512
Fee, commission and brokerage 601,666
Dividend income 12,464
Income from dealing in foreign currencies 128,999
Gain on sale of securities 60,250
Unrealised loss on revaluation of investments 9,200
Other income 280,700
Administrative expenses 1,958,248
Other charges 14,435
Taxation:
- Current 158,742
- Prior 33,625
- Deferred 142,634
Exchange differences on transaction of net investment in foreign branches 15,259
TOTAL 99,489,144 99,489,144

Additional information:
(a) During the year, 333,333 ordinary shares of Re. 1 each were issued as 'Right Issue Shares'.
Appropriations were made from Reserves
(b) During the year, 333,333 ordinary shares of Re. 1 each were issued as 'Bonus Shares'.
Appropriations were made from Reserves
(c) Exchange differences is to be transferred to Reserves.
(d) 20% of profit after taxation is to be transferred to Statutory Reserve (reserve),
as in accordance with the B.O. 1962.
(e) Surplus on revaluation of fixed assets (net of tax) of Rs. 8,698 is to be transferred
to Unappropriated profits.

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Question
Required:
(1) Profit and loss account (including EPS, assume weighted average number of ordinary shares
to be 152,044) for the year ended on Dec 31, 08;
(2) Balance sheet, as on Dec 31, 08; and
(3) Statement of changes in equity.

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BS
Bank of Karachi Limited
Balance Sheet
As on December 31, 2008
ASSETS Rs.
Cash and balances with treasury banks 9,286,453
Balances with other banks 4,243,984
Lendings to financial institutions 4,152,218
Investments 18,834,070
Advances 49,999,775
Operating fixed assets 3,500,997
Other assets 1,877,684
91,895,181
LIABILITIES
Bills payable 1,030,378
Borrowings 2,798,043
Deposits and other accounts 79,836,464
Sub-ordinated loans 1,074,035
Deferred tax liabilities 640,446
Other liabilities 2,435,165
87,814,531
NET ASSETS 4,080,650

REPRESENTED BY
Share capital 1,666,667
Reserves 916,512
Unappropriated profit 941,031
3,524,210
Surplus on revaluation of assets 556,440
4,080,650

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PLAC
Bank of Karachi Limited
Profit and Loss Account
For the year ended on December 31, 2008
Rs.
Markup/Return/Interest earned 7,063,823
Markup/Return/Interest expensed 5,077,629
Net Markup/interest 1,986,194
Provision against non-performing loans 232,563
Provision against diminution in the value of investments -
Bad debts written off 512
233,075
Net Markup/interest less provision 1,753,119
NON MARKUP/INTEREST INCOME
Fee, commission and brokerage 601,666
Dividend income 12,464
Income from dealing in foreign currencies 128,999
Gain on sale of securities 60,250
Unrealised (loss)/gain on revaluation of investments (9,200)
Other income 280,700
1,074,879
2,827,998
NON MARKUP/INTEREST EXPENSE
Administrative expenses 1,958,248
Other charges 14,435
1,972,683
PROFIT BEFORE TAXATION 855,315
Taxation
- Current 158,742
- Prior (33,625)
- Deferred 142,634
267,751
PROFIT AFTER TAXATION 587,564
Unappropriated profit brought forward 462,282
Surplus on revaluation of fixed assets (net of tax) 8,698
Profit available for appropriation 1,058,544

Basic / Diluted Earnings Rs. Per Share 6.96

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SOCE
Bank of Karachi Limited
Statement of Changes in Equity
For the year ended on December 31, 2008
Share Unappropriated
Capital Reserves Profits Total
Rupees in thousands
Balance, January 1, 2008 1,000,001 1,450,406 462,282 2,912,689
Issue of right shares 333,333 (333,333)
Issue of bonus shares 333,333 (333,333)
Exchange differences on translation of
net investments in foreign branches 15,259 15,259
Surplus on revaluation of fixed assets 8,698 8,698
Profit after taxation 587,564 587,564
Transfer to statutory reserves 117,513 (117,513)
1,666,667 916,512 941,031 3,524,210

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