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ANNUAL REPO RT 2 0 1 2

CONTENTS
02 04 06 08 12 16 18 19 22 24 25 Vision and Mission Code of Conduct Company Information Board of Directors Board Committees Corporate Social Responsibility Corporate Calendar Notice of Twenty First Annual General Meeting Financial Highlights & Financial Performance Horizontal Analysis of Financial Statements Vertical Analysis of Financial Statements Directors’ Report to the Shareholders Statement of Compliance with the Code of Corporate Governance Review Report to the Members on the Statement of Compliance Auditors’ Report to the Members Unconsolidated Financial Statements Directors’ Report to the shareholders on Consolidated Financial Statements 80 Auditors’ report to the Members on Consolidated Financial Statements 81 Consolidated Financial Statements 151 Pattern of Shareholding Form of Proxy 26 32 35 36 37 77

VISION To be recognized as the premier and best performing investment company in Pakistan. 02 JSCL .

MISSION To build value for our shareholders by providing competitive returns on a sustainable basis through prudent investment decisions by employing best practices of Corporate Governance and Risk Management and conducting our business in accordance with the highest standards of ethics and legal compliance. Annual Report 2012 03 .

We are a meritocracy and an equal opportunity employer. Professional communication and open environment where everyone has right to speak. Adopting principle of good corporate citizenship and striving to fulfill corporate social responsibilities. reward them and encourage them to innovate.CODE OF CONDUCT The success of our Company depends on adopting high ethical standards and business practices in conducting business. We value quality of work and employees’ best contribution in achieving clients’ and shareholders’ financial goals. 3. Protecting and preserving clients’ interests. Every member of JSCL family is expected to review and strictly abide by the following code of conduct: 1. motivate them. 8. 6. 7. Fairness in conducting business while striving for highest returns. 5. dignity and honesty in business conduct and upholding loyalty. Endeavor to hire the best people. Transparency in conducting business and appropriate public disclosures. 2. Financial Statements should reflect fair view of business operations and should not conceal any fact. 9. 04 JSCL . 4. Exhibit integrity.

15.10. 14. Treating employees equally and avoiding authority misuse. Avoid workplace harassment and report unethical practices immediately. 16. 11. 18. Insider trading is strictly prohibited. Maintain highest level of confidentiality and privacy of data during and after employment at JSCL. Company’s assets should be used effectively and proprietary information should be kept confidential. 17. Employees should not hold any position in other organization without prior approval. 12. 13. Striving to provide healthy and secure environment and avoid wasting natural resources. Annual Report 2012 05 . Avoid any business or professional activities or any beneficial interests that may result in a conflict with or be competitive with the interests of the Company. Gifts and Bribery should neither be offered nor accepted except for nominal gifts with appropriate disclosures and permission.

Non Executive Director . Siddiqui Ali Hussain Naveed Khimani Chief Justice (R) Mahboob Ahmed Ali J.COMPANY INFORM MATION N Board of Directors Mazharul Haq Siddiqui Chief Justice (R) Mahboob Ahmed Ali J.Non Executive Chief Executive Officer Company Secretary Chief Financial Officer Audit Committee Chairman Member Member Secretary Executive Committee Human Resource & Remuneration Committee Chairman Member Member 06 JSCL .Non Executive Director .Non Executive Director .Non Executive Director .Non Executive Director . Siddiqui Ali Hussain Munawar Alam Siddiqui Stephen Christopher Smith Munaf Ibrahim Suleman Lalani Naveed Khimani Hasan Shahid Chief Justice (R) Mahboob Ahmed Ali J. Siddiqui Suleman Lalani Mazharul Haq Siddiqui Chief Justice (R) Mahboob Ahmed Suleman Lalani Chairman .Independent Non Executive Director .

E. Karachi.S. P. 6th Floor. Block-2. 241-C.com Internal Auditors Legal Advisors Share Registrar Registered Office Website Annual Report 2012 07 . Shahra-e-Faisal Karachi-75530. Pakistan UAN: (+92-21) 111-574-111 Phone: (+92-21) 32799005 Fax: (+92-21) 32800090 www.C.) Ltd..H.External Auditors Ernst & Young Ford Rhodes Sidat Hyder Chartered Accountants Anjum Asim Shahid Rahman Charted Accountants Bawaney & Partners Technology Trade (Pvt. Faysal House.js.

National Insurance Corporation and Member.AL-Abbas Sugar Mills Limited 08 JSCL . he joined The First MicroFinance Bank Limited as its Chief Financial Officer and Company Secretary. Mr. Suleman Lalani Chief Executive Officer (Executive Director) Mr. He was Vice Chancellor. Lalani is a Fellow member of the Institute of Chartered Accountants of Pakistan and has 20 years of experience in the financial services sector. Siddiqui is one of Pakistan’s senior most civil servants and an eminent educationist. (“JSCL”) on March 1. In January 2002. He joined Income Tax Department in 1957 through Central Superior Services Competitive examination and served in various capacities including the Commissioner of Income Tax. He has also been the President Sindh Madressa Board. 2012 as Chief Executive Officer. Chairman Academic Council Institute of Business Management and Member of its Board of Governors. He has served the Federal Government as Secretary Establishment.JS Bank Limited . He has held many senior positions with the Government of Pakistan. He also held the positions of Chairman.all in honorary capacity. Other Directorships: . during 1984 -1988. Mr.BOARD OF DIRECTORS Mr. Finance and Services and General Administration Departments. Economic Affairs & Statistics and Youth Affairs Divisions. He served the Provincial Government of Sindh as Secretary Education. Other Directorships: .JS Investments Limited . In year 2000 he was promoted to the position of Chief Operating Officer of Jahangir Siddiqui Investment Bank Limited. Education.Hum Network Limited Mr. a subsidiary of JSCL. 2001 . Sindh University for three terms of 4 Years each. . Mazharul Haq Siddiqui Chairman (Non . Ltd.Executive Director) Mr. Federal Public Services Commission.2005 & 2005 to January 2010. Suleman Lalani joined Jahangir Siddiqui & Co. Lalani started his career with JSCL in 1992 where he worked for over eight years.JS Investments Limited . Prior to joining JSCL he was Executive Director Finance & Operations and Company Secretary of JS Investments Limited where he served as CFO and Company Secretary for seven years. Management Services. He has also completed the Board Development Series Certificate Program conducted by the Pakistan Institute of Corporate Governance.

Siddiqui holds B. He then practiced at the Bar of Lahore High Court and the Supreme Court of Pakistan for 19 years and particularly deliberated on constitutional and commercial issues. Pakistan’s largest private equity firm.BankIslami Pakistan Limited Mr. Siddiqui is the Managing Partner of JS Private Equity. He served as the Chief Justice of the Federal Shariyat Court in 1997 to 2000. The task force setup by SECP for framing Rules for establishment of Takaful Insurance Companies was also headed by him as its Chairman.1991. Prior to JS Group. Mr. a Member of the Managing Committee of Gulab Devi Chest Hospital. He was the counsel to all statutory corporations. Mr.Executive Director) Mr. Lahore. he was an Associate with Techpacific Capital where he was part of a team that managed over US $ 400 million in private equity and venture investing in Asia-Pacific. He was Chairman of the Provincial Election Authority of Punjab for eleven years and also Chairman of Insurance Reforms Commission of Pakistan. Siddiqui (Non . From 2002-2003 he was an Executive Director of JS Investments Limited private sector mutual fund manager. Mahboob Ahmed was then appointed as a Judge of the Lahore High Court in 1978 and became its Chief Justice in 1990 . Mr.East West Life Assurance Co. a private equity firm. Patron in Chief of Bu-Ali Seena Hospital. Other Directorships: . . Mahboob Ahmed was Banking Judge of the Lahore High Court and the company Judge of spurious companies. Karachi. Ali J. He also acted as Governor of Punjab province number of times. a Member of Governing Body and Executive Committee of Liaquat National Hospital. He graduated from the University of Punjab and completed his Bar in 1957. Ltd.Executive Director) Chief Justice (R) Mahboob Ahmed is an eminent and well respected lawyer and practiced as an advocate of the High Court and the Supreme Court of Pakistan for over 20 years. He is an active philanthropist and is President of the Muslim Education Conference. Mr.Chief Justice (R) Mahboob Ahmed (Independent Non .A. Ltd. .East West Insurance Co. Prior to Crosby. Lahore Chairman Kulli Khan Waqf an Educational Foundation for welfare of Industrial workers. Chairman of the Board of Management Fatima Jinnah Medical College and the Sir Ganga Ram Hospital. a founding member of Heart Association of Lahore and the Pakistan Society for Cancer Control. a number of Insurance Companies as well as large foreign and domestic companies. and was based in Hong Kong. He has also been the Chairman of the Pakistan Red Crescent Society. in Economics from Cornell University. Siddiqui was a Director with Crosby. Other Directorships in Pakistan Mahvash & Jahangir Siddiqui Foundation Agrow Limited Airblue Limited Acumen Fund Limited Ghani Glass Limited AL-Abbas Sugar Mills Limited AJS Holding (Pvt) Limited Annual Report 2012 09 .

For his meritorious services to the PAF. Ali Hussain (Non . an M. Prior to starting his own business. Hussain has managed operations for Hewlett Packard. He is also an alumna of the National Defence College. Mr.Executive Director) Mr.Executive Director) Mr. owned and managed multiple technology and financial investment companies in the international arena with global operations. His last post was Assistant Chief of Air Staff (Administration) at Pakistan Air Force Headquarters. Pakistan and other disadvantaged countries. Boeing-707 and Dassault Falcon 20. Other Directorships .) (Non . Other Directorships: JS Investments Limited JS Value Fund Limited. Munawar Alam Siddiqui retired as an Air Commodore from the Pakistan Air Force (PAF) in 2003. a B. Sc. He holds a Masters degree in Engineering from Stanford University. Ali Hussain brings more than thirty years of managerial and entrepreneurial experience in both corporate and private entities. Sc. He has served as a VVIP and Presidential pilot during his tenure of service and has held various key Command and Staff appointments in the PAF. Mr. TI(M) (Retd. SI (M). a private charitable foundation primarily devoted to educational health care and humanitarian projects in Singapore. Siddiqui holds an M. Sc. in Strategic Studies from Karachi University. JS ABAMCO Commodities Limited Mahvash & Jahangir Siddiqui Foundation Peregrine Aviation (Private) Limited Hum Network Limited Karachi Education Initiative Karigar Training Institute Mr. He is a qualified flying instructor and has flown over 8000 hours on different aircraft including C-130.BankIslami Pakistan Limited 10 JSCL . Avionics from Peshawar University.Air Commodore Munawar Alam Siddiqui. in California and Singapore. he was awarded Tamgha-e-Imtiaz (Military) and Sitara-e-Imtiaz (Military). in Defence and Strategic Studies from Quaid-e-Azam University. Mr. He served as Director of Air Transport at Air Headquarters from 1996 to 1998 and commanded an operational air force base with over 8. Sc.500 personnel from 2000 to 2002. Hussain has invested. (Honours) in War Studies from Karachi University and B. Hussain also founded Sajjad Foundation. He was commissioned in the GD(P) Branch of the Pakistan Air Force in 1974. Mr.

a Hong Kong-listed finance company where he rose to become Group CFO and Company Secretary.Executive Director) Mr.Executive Director) Mr. Mr. Stephen Christopher Smith (Non . He was the Chief Executive Officer from September 1999 to February 2012. Prior to JS. Mr.Mr. Mr. Smith qualified as a Chartered Accountant at Ernst & Young. Other Directorships . Smith joined JS Group in 2004 and is responsible for JSCL's international activities. Smith holds a Joint Honours degree in Economics and Mathematics from the University of Bristol. Ibrahim is a Fellow member of Institute of Chartered Accounts of Pakistan and Fellow member of the Institute of Cost & Management Accountants of Pakistan.Credit Chex (Pvt) Limited Annual Report 2012 11 . He then moved to Techpacific Capital. a UK-based project and corporate finance company.Attock Refinery Limited Mr. Munaf Ibrahim (Non . London before joining European Capital.Mahvash & Jahangir Siddiqui Foundation . Other Directorships . Ibrahim joined JSCL in 1993 and in 1995 he was elected to the Board as an Executive Director.JS International Companies .

prior to their approval by the Board of Directors. accounting system and reporting structure are adequate and effective. Review of management letter issued by external auditors and management’s response thereto. audit fees and provision by external auditors of any service to the Company in addition to audit of its financial statements. Ali Hussain Chairman Member Member Terms of Reference The Board of Directors of JSCL has determined the terms of reference of the Audit Committee. Ali J. Siddiqui Mr. Review of quarterly. 12 JSCL . The Audit Committee shall. Compliance with applicable accounting standards. among other things. Ascertaining that the internal control system including financial and operational controls. In the absence of strong grounds to proceed otherwise. Review of the scope and extent of internal audit and ensuring that the internal audit function has adequate resources and is appropriately placed within the Company. Review of the Company’s statement on internal control systems prior to endorsement by the Board of Directors.BOARD COMMITTEES Board Audit Committee Chief Justice (R) Mahboob Ahmed Mr. The terms of reference of the Audit Committee of JSCL shall also include the following: (a) (b) (c) Determination of appropriate measures to safeguard the Company’s assets. Significant adjustments resulting from the audit. be responsible for recommending to the Board of Directors the appointment of external auditors by Company’s shareholders and shall consider any questions of resignation or removal of external auditors. Consideration of major findings of internal investigations and management's response thereto. half-yearly and annual financial statements of the Company. Any changes in accounting policies and practices. The going-concern assumption. the Board of Directors shall act in accordance with the recommendations of the Audit Committee in all these matters. focusing on: • • • • • • (d) (e) (f) (g) (h) (i) (j) Major judgmental areas. Ensuring coordination between the internal and external auditors of the Company. and Compliance with listing regulations and other statutory and regulatory requirements. Facilitating the external audit and discussion with external auditors of major observations arising from interim and final audits and any matter that the auditors may wish to highlight. Review of preliminary announcements of results prior to publication.

in consultation with the Chief Executive Officer and to consider remittance of any matter to the external auditors or to any other external body. 2012 April 25. and new transactions in accordance with the Risk Management Guidelines. 2012 August 30. Ali J. 2012 October 26. Ali J. Siddiqui Mr. Monitoring compliance with the best practices of corporate governance and identification of significant violations thereof. the Statement of Investment and Operating Policy (SIOP) and other internal guidelines. 2012 Chief Justice (R) Mahboob Ahmed Mr. major additions / deletions in trading portfolio.(k) (l) (m) (n) Instituting special projects. value for money studies or other investigations on any matter specified by the Board of Directors. changes in investment portfolio. 2011 October 30. Determination of compliance with relevant statutory requirements. Siddiqui Mr. underwriting. and Consideration of any other issue or matter as may be assigned by the Board of Directors. Suleman Lalani Terms of reference The Executive Committee is appointed by the Board of Directors and includes the Chief Executive Officer as a member. (a) The Executive Committee shall convene whenever required to evaluate and recommend to management and the Board the approval of new lines of business. October 31. Members of the Board Audit Committee Date of Board Audit Committee Meetings and Attendance September 24. 2012 Annual Report 2012 13 . 2011 February 23. Ali Hussain Executive Committee Chief Justice (R) Mahboob Ahmed Mr.

the Company’s quarterly capital expenditures budget as reviewed and approved by the Board of Directors. The Committee shall also be responsible for consideration and approval on recommendations of CEO on such matters for key management positions who report directly to CEO or COO. The Committee believes substantial portions of total compensation should be at risk. Suleman Lalani . the Committee should consider the Company’s performance and relative shareholders’ return. The Executive Committee will regularly review the Company’s operations based on monthly operating reports (to include a summary of the Company’s net capital position based on market value) prepared and submitted by the Chief Financial Officer or other person nominated by the Board of Directors in comparison with the annual budget.Member Terms of Reference: Purpose The Human Resource & Remuneration Committee (the “Committee”) shall discharge the Board’s responsibilities relating to the human resource functions of the Company’s executives. will delegate to the Chief Executive Officer to implement. Committee Duties and Responsibilities Compensation of Chief Executive Officer (CEO) The Committee shall annually review and approve corporate goals and objectives relevant to CEO’s compensation. The Committee shall be responsible for recommending human resource policy to the Board. The Executive Compensation Committee places heavy emphasis on pay for performance.(b) The Executive Committee will review the Company’s adherence to the Policy Statement and. and such other factors as the Committee may consider relevant. The Committee shall have overall responsibility for recommending selection. subject to any employment contract that may be in effect. Compensation Policy The JSCL executive compensation program is designed to attract. CFO and Company Secretary. Mazharul Haq Siddiqui . (c) (d) Human Resource & Remuneration Committee Mr. The Executive Committee will implement. COO. the awards given to the CEO in past years. operations. evaluate the CEO’s performance in light of those goals and objectives. Likewise. or as appropriate. prospects or business plan of the Company. evaluation approving and evaluating the compensation (including retirement benefits) and succession planning of CEO. In determining the long-term incentive component of CEO’s compensation.Member Mr. the value of similar incentive awards to CEO’s at comparable companies. motivate. outstanding performance should lead to substantial increase in compensation.Chairman Chief Justice (R) Mahboob Ahmed . and approve the CEO’s compensation level based on this evaluation. if needed. and present to the Board for its review at its next regularly scheduled meeting any shortfalls or significant changes in the conditions (financial or otherwise). make recommendations to the Board of Directors for changes as a result of new developments. reward and retain superior management talent. 14 JSCL .

The Committee shall make recommendations to the Board concerning incentive compensation plans and equity-based plans. The Committee Charter The Committee shall review and reassess the adequacy of this Charter annually and recommend any proposed changes to the Board for approval. the Committee should bear in mind that incentives are industry dependent and are different for different categories of employees. the Committee should. In doing so. when and if appropriate. to the interests of shareholders and management compensation packages should be designed to create a commensurate level of risk and opportunity based on business and individual performance. severance arrangements. Overall Compensation Structure In addition to reviewing and setting compensation for management. from time to time. Reporting to the Board The Committee shall make regular reports to the Board. (c) the long-term incentive award. and such other forms of compensation as the Committee may consider appropriate. in each case as. (d) employment agreements. Annual Report 2012 15 . The Committee shall annually review and approve for the senior executives of the Company (a) the annual base salary.Compensation of Senior Executives The Committee shall periodically review and make recommendations to the Board with respect to equity-based compensation. review broadly the overall compensation structure for employees. (b) the annual incentive bonus. and delegate authority to. Sub-Committees The Committee may form. subcommittees when appropriate. and (e) any supplemental or special benefits. both individually and as a team. and change in control agreements or provisions. Annual Evaluation The Committee shall conduct an annual evaluation of the Committee’s performance as compared to the requirements of its Charter. The structure of management compensation should link the interests of management.

CORPORATE SOCIAL RESPONSIBILITY
At Jahangir Siddiqui & Co. Ltd. (JSCL), we believe in playing our part in building this nation which has given so much to us. It is our moral and ethical responsibility to step up and offer a helping hand to the members of the community in need. JSCL conducts its Corporate Social Responsibility through the Mahvash & Jahangir Siddiqui Foundation (MJSF) and this collaboration has led them to collectively be a strong advocate of various philanthropic activities including extensive relief efforts in the 2005 earthquake, 2008 IDP Crisis and the recent floods.
As a socially responsible entity, we desire to take initiatives which make us add value to people’s lives and the environment around them. In line with our Corporate Social Responsibility philosophy, we have clearly defined CSR objectives which revolve around behaving ethically, following best practices and contributing to the economic development of the country. Today, we are amongst the very few organizations that have an active CSR policy in place. vocational training, and development of schools in rural areas, particularly the two most populated provinces of Sindh and Punjab in Pakistan. MJSF extends donations to prominent institutions like the Lahore University of Management Sciences (LUMS), Institute of Business Administration, Karachi (IBA) and Karachi Education Initiative (KEI) for Karachi School for Business and Leadership. At present, it is also supporting IBA Sukkur in the creation of Endowment Fund leading to the generation of sustainable financial support programs at the Institute. MJSF is supporting various schools in Punjab through the Progressive Education Network (PEN). MJSF has also established and is operating various schools in rural areas of Sindh through its partner Fakhr-e-Imdad Foundation and a vocational training institute, the Karigar Training Institute. MJSF also runs scholarship programs for individuals and annually sponsors a group summer program at the National University of Singapore with its partner Sajjad Foundation and at Weill Cornell Medical College, Qatar. It also partners with unique organizations for children with disabilities such as JS Academy for the Deaf. The Academy has applied with the concerned authorities for the graduation program and is currently in the process of researching, developing and patenting Islamic Sign Language. Setting precedence for unique social practices within the Group, MJSF has launched an initiative facilitating the economic burden of its employees. Embedded with sustainable mechanism, JS-Group Education Support Scheme (JS-GESS) subsidizes the educational cost burden of the employees’ children. Essentially, GESS emphasizes on imparting the significance of education as a need. Furthermore, MJSF is also currently in the process of setting up model Leadership Schools nationwide along with another summer program with the Virginia Institute of Marine Science.

Mahvash & Jahangir Siddiqui Foundation:
The Mahvash & Jahangir Siddiqui Foundation (MJSF) was established in 2003 under Section 42 of the Companies Ordinance, 1984 by the JS Group as a charitable, not-for-profit organization. MJSF aims to provide healthcare, education and social enterprise through sustainable development to underprivileged members of society with a special focus on women. Apart from its own efforts, MJSF has partnered with key institutions including: United Nations High Commissioner for Refugees (UNHCR); United Nations Office for Coordination of Humanitarian Affairs (UNOCHA); United Nations Children’s Fund (UNICEF); World Food Program (WFP); United Nations Development Program (UNDP); and International Organization for Migrations (IOM). MJSF also works closely with Oxfam and MSB (the Swedish Civil Contingencies Agency) for disaster response and relief. MJSF is registered with the Pakistan Center of Philanthropy and Pakistan Red Crescent. Mahvash & Jahangir Siddiqui Foundation has long-term commitments in following areas:

Education:
We think that for a nation to progress, investment in education is absolutely essential. MJSF educational initiatives encompasses support for; special education, higher education,

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Social Enterprises and Sustainable Development:
Realizing the importance of promoting social enterprises, MJSF has ventured into many projects and has partnered with organizations which have the same desire for social and sustainable development. The goal is to promote economic development and to enhance the dignity and quality of life of individuals, families and communities by eliminating barriers to opportunity and helping people in need reach their fullest potential. In collaboration with Acumen Fund and Rothschild Foundation, MJSF has launched the Pakistan Fellows Program to support the development of the next generation of social change leaders who are building innovative businesses and strong institutions across the country. MJSF is also creating livelihood generation opportunities through the providence and monitoring of poultry birds to vulnerable families in the Matiari district of Sindh. Further, in partnership with Agrow Lahore, MJSF is also in the process of initiating an income support and capacity building scheme by providing qingqi vehicles, technical selling expertise, training and avenues for trade to local farmers in the nearby districts of Lahore.

Healthcare:
MJSF is a strong advocate of promoting healthcare and has been involved in providing health related services since many years. From organizing eye/skin camps in the remote areas of Sindh to providing sophisticated equipment to various health facilities, MJSF actively donates to a number of hospitals as an annual commitment. Zakat funds are also utilized for the most underprivileged patients at these hospitals who cannot afford basic healthcare. MJSF is linked with numerous projects and organizations in health care, including; Sindh Institute of Urology and Transplantation (SIUT), Karachi National Hospital, The National Institute of Cardiovascular Diseases (Emergency Ward) and other notable social enterprises. MJSF, in partnership with the Allianz Direct Help Foundation has also initiated a project to construct a major healthcare facility in the city of Sehwan Sharif in the province of Sindh. MJSF aims to establish a full service hospital facility with emergency care, laboratories, radiology services and in-patient facilities.

Emergency Relief:
MJSF also mobilizes major relief efforts in Pakistan in times of national emergencies. In the past, MJSF immensely contributed at the time of the 2005 earthquake, the 2008 Internally Displaced Persons Crisis and the floods in recent years, with close collaboration with almost all United Nations’ clusters operating in Pakistan, along with organizations such as IOM, Oxfam, WFP and the Provincial Disaster Management Authority. MJSF is also setting up a rehabilitation program for the flood affectees. In partnership with IOM, It is supporting a shelter project called 'One Room Shelters' in three affected districts in Sindh. The project envisages provision of homes to hundreds of families with strong key cash for work benefits, incorporates social mobilization and technical integration.

For more details, please visit Mahvash & Jahangir Siddiqui Foundation’s website: www.mjsf.net

Annual Report 2012

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CORPORATE CALENDAR

Meetings
Board of Directors’ Meeting Audit Committee and Board of Directors’ Meeting to consider accounts of the Company for the year ended June 30, 2011 Audit Committee and Board of Directors’ Meeting to consider accounts of the Company for the quarter ended September 30, 2011 Annual General Meeting of the Company Audit Committee and Board of Directors‘ Meeting to consider accounts of the Company for the half year ended December 31, 2011 Board of Directors’ Meeting Board of Directors’ Meeting Audit Committee and Board of Directors’ Meeting to consider accounts of the Company for the nine month period and quarter ended March 31, 2012 Board of Directors’ Meeting Extraordinary General Meeting Audit Committee and Board of Directors’ Meeting to consider accounts of the Company for the twelve month period and Quarter ended June 30, 2012 Audit Committee and Board of Directors’ Meeting to consider accounts of the Company for the fifteen month period and quarter ended September 30, 2012 Board of Directors’ Meeting

Dates
July 16, 2011

September 24, 2011

October 26, 2011 October 27, 2011

February 23, 2012 March 05, 2012 March 30, 2012

April 25, 2012 May 25, 2012 June 27, 2012

August 30, 2012 October 30, 2012 and October 31, 2012

December 27, 2012

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2012 as recommended by the Board of Directors of the Company. To appoint Company’s Auditors for the year ending December 31. Dagia House. 2013 at 11:30 a. A proxy must be a member of the Company.5% i.e. to transact the following business: Ordinary Business 1. 2013 NOTES (i) The Share Transfer Books of the Company shall remain closed from March 30..75 per share for the eighteen month period ended December 31... Technology Trade (Pvt. By Order of the Board Naveed Khimani Company Secretary Karachi: March 14.) Ltd.NOTICE OF TWENTY FIRST ANNUAL GENERAL MEETING Notice is hereby given that the Twenty First Annual General Meeting of Jahangir Siddiqui & Co. 2012 together with the Directors’ and Auditors’ Reports thereon.H. April 05.S. (ii) Physical transfers and deposit requests under Central Depository System received at the close of business on March 29. Re.m. (iii) A member of the Company entitled to attend and vote may appoint another member as his/her proxy to attend and vote instead of him/her. 3. (the “Company”) will be held at Regent Plaza Hotel & Convention Centre. Block-2.E. 2013 to April 05.C. Main Shahra-e-Faisal. 2013 and fix their remuneration. 241-C. Ltd.e. 2013 (both days inclusive). (v) Beneficial owners of the shares registered in the name of Central Depository Company of Pakistan Limited (CDC) and / or their proxies will have to follow the following guidelines as laid down by the Securities and Exchange Commission of Pakistan: Annual Report 2012 19 . 2013 by the Company’s Registrar i. (iv) Proxies must be received at the Head Office of the Company not less than 48 hours before the time of the meeting. Karachi on Friday. 0. To receive. Karachi will be treated in time for the purpose of entitlement of dividend and attending the meeting. To approve and declare cash dividend @ 7. P. 2. consider and adopt the audited separate and consolidated financial statements of the Company for the eighteen month period ended December 31.

M/S. the Board’s resolution / power of attorney with specimen signature of the nominee shall be produced (unless it has been provided earlier) at the time of the Meeting.A. SRO 779 (1)/2011 of August 18. Off Shahrah-e-Quaideen. 20 JSCL . Dagia House. In case of Individuals.H. The shareholders having physical shares are requested to immediately send a copy of their valid CNIC / Passport (for non resident only) to our Registrar Office. The proxy form shall be witnessed by two persons. b. Technology Trade (Pvt) Ltd. the account holder and/or sub-account holder whose registration details are uploaded as per the CDC Regulations. b. the Board’s resolution / power of attorney with specimen signature shall be furnished (unless it has been provided earlier) along with proxy form to the Company. For Appointing Proxies In case of individuals. 241-C. addresses and CNIC numbers shall be mentioned on the form. SECP directed all listed companies to mention Computerized National Identity Card (CNIC) number / National Tax Numbers (NTN) of the registered members on the dividend warrant. P.E. In case of non-receipts of copy of valid CNIC (unless it has been provided earlier) and non-compliance of the above requirement the Company will be constrained to withhold dispatch of dividend warrants to such shareholers as per SECP’s SRO and directives.C. Attested copies of the CNIC or the passport of beneficial owners and the proxy shall be furnished with the proxy form. In case of corporate entity. Advice to Shareholders: In pursuance with the Securities and Exchange Commission of Pakistan (“SECP”) Notification No SRO 831 (1)/2012 of July 5 2012 in supersession of earlier Notification No. d. shall authenticate his/her identity by showing his/her original CNIC or original Passport along with Participant ID number and the account number at the time of attending the Meeting. the account holder and/or sub-account holder whose registration details are uploaded as per the CDC Regulations. (vi) Shareholders are requested to notify immediately of any change in their address to the Company’s Registrar. a.S. In case of corporate entity. 2011. The corporate entities are also advised to submit the NTN numbers to the above given address. B. The proxy shall produce his original CNIC or original passport at the time of the meeting. shall submit the proxy form as per above requirements. e. c. Block-2. For Attending the Meeting a. Karachi for printing/insertion on dividend warrants. whose names.

102. 2012) PKR. 8.Statement under Regulation 4(2) of the Companies (Investment in Associated Companies or Associated Undertakings) Regulation. 2013) PKR. 20.2012 to March 25. 2012 to week May 21. Description At the time of Approval under Section 208 Present Status 1. 2012 09. 5.35 per share as per audited financial statements as on December 31. 2013) PKR. 1984.68 per share (from week March 05. Earning / (Loss) per share of the investee company PKR. The change in financial position of JS Bank Limited and Lucky Cement Limited are given below: • S. 2013 to Feburary 15. 2012 Present Status 09. 2012 11. 2012 to May to November 30. to date no investment has been made against the said approvals.7758 per share as per audited financial statements as on April 30. Break-up value of securities intended to be acquired on the basis of the latest audited financial statements. No. 2011 PKR. 0. 2012 PKR. 3. 85. 2012 to May to November 30. 7. Name of Company Amount of Investments approved (PKR ‘in millions’) Amount of Investment made to date (PKR ‘in millions’) Nil Reasons for not making investment Approval is for investment in right issue which has not been announced by JS Bank Limited.28 as per audited financial statements as on June 30. Average of the preceding 12 weekly average price of the security security inteneded to be acquried 2.21 per share (from week November 26.88 per share as per audited financial statements as on June 30. 1 JS Bank Limited 2.70 as per audited financial statements as on December 31. 2012) PKR. 2012 had approved the following investments under Section 208 of the Companies Ordinance.86 per share as per audited financial statements as on June 30. JS Bank Limited Description At the time of Approval under Section 208 1. 2013 to Feburary 15. However. 12. 3. Break-up value of securities intended to be acquired on the basis of the latest audited financial statements.81 per share (from week March 05. 2012 PKR. 2012 PKR. No. No. 2012 PKR.85 per share (from week November 26. Earning / (Loss) per share of the investee company Annual Report 2012 21 .21 as per audited financial statements as on April 30. 5.97 as per audited financial statements as on June 30. 2012 to week Feburary • Lucky Cement Limited S. 2012 11. 2012 to week May 21. 2012 to March 25.000 2 Lucky Cement Limited 1.950 Nil Transaction will be carried out at an appropriate time in the interest of the shareholders of the Company. 2012 to week Feburary PKR. 2011 2. S. 150. Average of the preceding 12 weekly average price of the security security inteneded to be acquried PKR. 119. 0. 2012 The Company in its Extraordinary General Meeting held on June 27.

.....848..482 15..352 2.834 1.228) 10.108.276.421 17..347.086.211 8.195 519..300 3.873...535 150.050..198 (438.613 21.955 2.008 .203 228....523) 2010 609..50 100% 547.000 700.427 (12...198 2.591 22.47 8.053 1.833.56 9.632..702 2007 3.761.632 9..957 2..012 86..396 22.994 46..........214..471) (14.686) (24..35 13..889) 2..period / year end 3.665 380.813.66 (0. 2012 22 JSCL .607.19 13.275 28.000 70...853 7.534 95.705.187 1..297 571..065 2.26 20% 14% 18% 100% 139..104 189.767 (5.537.....285 - 2...15 713.35 2...704 8.107...153 3.601) 1..305 2....285 - 7.337.64 3.85 21% 19% 19% 87% 11.524.277.00 3..644 (375...584..277 (11.220....348.352..916..029 17.....494.807...308.243 (1..355...563 2011 985..00 186.75 21% 19% 12% 98% 216..168 CAPITAL STRUCTURE Earning assets to total assets ratio Break up Value per Share Financial Leverage Ratio Weighted Average cost of Debt Debt to Equity 98% 17..765) 3...03 0.315) (309..17 11.328 35.50 106% 11% 62% * Eighteen Month period ended December 31.368.5% 4% 2..423 2...760..853 7..710) 1.041.977 3.824) 1.239.00 12.629.000 7....98 33% 14% 31% 98% 13....000 2...182 17..13 2.205....Ordinary shares .899 63.903..459 (1...632.412.884 (238.831 3..324..655) 2.16 123% 0.508 763.693 222.27 52% 20% 32% 99% 25.853 11..041.508.524.824 10.23 2.632.257.939..883 18.691 2..220..552 205..632.582.853 2...591) 2.983...376...510 3..704.486 (14..14 11.360 58..887.462 (1...15) 3....954 16.667 1.721) FINANCIAL PERFORMANCE (Based on Unconsolidated Financial Statements) 2012* 2011 2010 2009 2008 2007 PROFITABILITY Gross Yield on Earning Assets Cost/Income ratio Return on Capital employed LIQUIDITY Current Ratio Quick / Acid test ratio Cash to Current Liabilities INVESTMENT / MARKET RATIOS Basic and Diluted Earnings per Share Price to Book ratio Dividend Yield ratio Dividend Payout ratio Cash Dividend per share (Rupees) Stock Dividend per share Market value per share at the end of the period / year (Rupees) Average market price during the period / year (Rupees) Average KSE 100 index during the period / year 21% 34% 20% 9% 71% -6% 3% 87% -45% 13% 23% -48% 51% 9% 77% 21% 50% 29% 2..810 2.298..76 0..243.....000 1..285 - 7.392 942...40 0...076 201.88) 76% 0% 0% 244% 23.632.201...384) 2008 19..54 2.139 763...786...Preference shares Reserves Outstanding ordinary shares (in '000') Outstanding preference shares (in '000') Liabilities Financings Current liabilities (excluding Current portion of financing) Assets Property and equipment Investments Other non-current assets Current assets Cash Flows Net cash flows from operating activities Net cash flows from investing activities Net cash flows from financing activities Changes in cash and cash equivalents Cash and cash equivalents ..989.866) (1..364) 1.178) (1.626 (25.347 (18.325 306.344 17..75 16.654 32..407 9.013 846.285 - 7.276) (3.413.908 3.19 139..553 2.363 18..37 314% 0% 0% 160% 530.36 1.64 25.566 846..853 5...06 1......747 (391...853 2.853 7..449 (524..632.632.00 1..71) 3.632.006 3..954) (1.291.921...495 13..48 10..907 523.359..77) 63% 8% 1.064 2.322.701) (8..60 2.257.485 528..087 17.698 (581.FINANCIAL HIGHLIGHTS (Based on Unconsolidated Financial Statements) 2012* Operating Results Total revenue Operating and administrative expenses Finance cost (Reversal of provision)/provision for impairment Profit/(loss) before tax and impairment losses Profit/(loss) before tax from continuing operations Profit/(loss) after tax from continuing operations Financial Position Share capital .853 1.55 (0.309..954 2....833.975.877 763.632.853 7.362.020 - 350..03 11.826) 2009 3..591 1.090) (313..227.841..141 763....67) 41% 0% 0% 6.149.410.899) (8....905 17.801 9.646...(Rupees in ‘000).756 13.260 18....200 28..343.112.980.. 7.687 623.297..952 (14.294 4.223 586.200 2.10 75% 5% 24% 0..201.09 3.489..

000 25000.00 000.00% 2012 2011 2010 2009 2008 2007 Years Annual Report 2012 23 .00% 20.00 000.000 35.000 25.00 000.00% 20.00% 60.00% 40.00% 60.000.00 000) 2012 2011 2010 2009 2008 2007 Years Years Shareholders' Equity 35.00 20 000.000.00 000) (10.00% 80.000 30.000.00% 20.000 10.000.00 000 15.00% 0.00% 60.00 000 (5.00% 2012 2011 Return on Total Assets 100.000 2012 2011 2010 2009 2008 2007 2012 2011 2010 2009 2008 2007 Years Years 60.00 000.00 000.00 000) (15.00% 10.00% 0.000.00 000.00% 30.000.000 15000.00% 40.000 20000.00% 40.00% 20.00% 50.00% 40.00% 80.Total Revenue 25000000 20000000 Rupees in ‘000’ Profit Before Taxtation And Profit After Taxtation (Pkr 000) 2 .000.000.00% 0.000 15.000 Rupees in ‘000’ Total Assets and Current Assets (PKR '000') 40.000 10000.000 5.000 30.00 000.00 000 5.000.00 000 10.000 20.00% Return on Capital employed 2010 2009 2008 2007 2012 2011 2010 2009 2008 2007 Years Years Debt to Equity Ratio 70.000.00% 20.00% 40.00% 60.00 000) Rupees in ‘000’ 15000000 10000000 5000000 0 2012 2011 2010 2009 2008 2007 Profit Before Tax Profit After Tax (20 2 .000 Rupees in ‘000’ Total Assets Current Assets 5000.

946 11.994 35 12.201.438 158 (13) 16 2 (1) 16 22.907 (27) 71 (73) 100 443 82 497.427 (12.129.994 23.413 100 44 54 114 350.240 1.807.485 528.086.632.898 288.325 (50) 2.764 (10) 122.140.270.369.489.008 (11) (100) (11) 105 21.411 76.905 1.029 40 1.200 28.201 (32) 13.044) 3.846.396 1.138.297 571.877 (10) 10.893 3.521 5.561.584.037.245.777 101. 2012 24 JSCL .892 Profit before taxation Taxation Current Prior (101) 1.702 1.843.562 0 1.676 (21) 15.276.263 47.108 1.148.628 79.net Total Equity and Liabilities PROFIT AND LOSS Income Return on investments Gain on sale of investments Income from long term loans and funds placements Other income Revaliuation of investments at fair value through profit & loss Expenditures Operating and administrative expenses Finance cost (Reversal of Provision)/provision for impairment against investments % Amount % Amount % Amount % Amount % Amount % Amount 8.508 13.939.824 16.801 250.844 (68) 407 (100) 23 11.359.612.284.537.668 4.423 (100) (53) (91) (44) 100 100 268 (3) 140 24.740 744 3.384) * Eighteen Month period ended December 31.494 6.490 100 (47) (9) (50) (100) 102 (98) (72) (38) 153.466 493.669 154.418 (39) (21) (34) (20) (34) 28.874 2.362.454 3.076 37 (83) (99) (32) 74 (81) 553.152 222.275 - (100) (98) (75) (26) 44 (89) (27) (34) 21.183 23.655) 1.277.393 534 7.817 100 27 274.911 (391.605 2.257.211 (12) 48 228.352 693.127.734 1.370 .975.571.972 12.546 1.536 60 1.110.066 2.693 7.220.702 (91) 3.195 519.550 2.494.882.HORIZONTAL ANALYSIS OF FINANCIAL STATEMENTS (PKR in ‘000) 2012* Vs.827) 19.648.627 1.203 (12) (87) 4.201 6.609 (3.821 732.222) (520) 17.715 5.360 37.983.302.593 16.407 80 1.608 4.165.300 4.730 (39) 2.609) 2.866) (81) 8.000 5.274 1.500 (40) 17.240 21.239.097.594 12 1.281 200.499 24 9.184.080 100.207 242.761.343) (65) (840) (117) 7.577 109.000 7.702 5.486 (14.770 18.646.300 2.751.412.495 4. 2009 2009 Vs.693 (25) 50 1.781 81.844 2.013 74 943 (14) (24) (185) 469 362.287 (79) (47) (12) 7.945 1.954 (73) (39) 846.853 297 1.278.182 62 61 (754) 72 662 523.521 (679.952) (1.853 (40) 2.493 20.591 (25) (38) 201.278 2.632.989.683.201 5.423 0 29 (44) 25 (100) (18) 140 1.338 65 (56) (83) 629.463 16.027.628 122.788 325.523) (86) (8.674 11.693 31.409 84.243 203 1.607 20 249 (34) 127.946.639 35 12.063 (20) (15) 359 68 1 354 58.941.994 3.683.269.566 846.312.673 49.257.302 1.901 (56) 18.218 192 375.332 12.775 19.884.381.844 (13) 95.853 5.263.337.876 985.141 19.896 2.664 4.525 (879.584.508.853 65 77 (117) 49 103 316.662 83.601.959 7.053 4.839.392 942.593.185 100 174 405 35 (100) (100) 2.946 1.325.632.524.364 347. accrued mark up and other recievable Short term investments Fund placements Taxation Cash and bank balance Non current asset held for sale Total Assets EQUITY AND LIABILITIES Share capital and reserves Share capital .608 537 (22) 20.775 250.026 17.563 (100) (34) 94 2.482 (27) 2.594.577 313.112.423 17.036 6.240 153.768) 609.105 30.201.ordinary shares Preference shares Reserves Non Current Liabilities Long term financing Current Liabilities Trade and other payable Accrued interest markup on borrowing Short term borrowings Current portion of long term financing Taxation .214 1. 2006 2006 Amount ASSETS Non Current Assets Property and equipment Investment properties Stock exchange membership cards and room Long term investments Long term loan and advance Long term security deposits Current Assets Trade debts Loans and advances Prepayment.054 9.692 12.184.831 17.867 85.670 (46) 2.609) (2.601.108 97 1.313 244 (60) (38) (9) 2.095.048 8.001 27.756 3.418. 2007 2007 Vs.513 4.845 2.654 3.705 (100) 1.733 2. 2010 2010 Vs.194 191.444 15.728 1.833.228 1.338 52 36 118.201 28.590 1.975 (86) (8.198 (76) 9.201 24 9.201 11.478.082 1.902 850.632.593 323.471) (184) (2.574.185 643 110 (57) 0 100 (18) 36 211.494.052 12.416.508.747 15.361 855.383.659.453.460 (100) 1.535 6.532 1.517 7.382.239 87.089.889) 1.743.956 100.078.379 2.7.482 623.858 113. 2011 2011 Vs.187.451.820 (63) (100) 62 758.946 (16) 10.383.629.846.7.508.355.902 (21) 15.572 11.535 (46) 11 1.178 39.622 99.853 11.764 9.496 (39) (17) (27) (56) (41) (27) 46.031.413.411 12.534 95.687 107 398 68 222 254 410.868 (103) 668 18.899) (49) 16.386.992 (51) 1.191 11.905 3.401 (11) 100 1. 2008 2008 Vs.201 20.360 331.740.826) (38) (14.401 (285) (1.227.048 2.494.000 700.716.511 312.552 98.720 11.187.212.927 710 100 768 913 913 (46) (100) (276) (184) 1.255.529 28.054 2.550.328 3.674 832 (38) (14.354 3.622.159.311 2.729.632.573.255 37.770 (8) 12.493 (31) 13.591 3.377 (45) 17.139 49 9.328 8.810 2.275 534 (100) 299 275 (6) 350.858 4.088 51.520.652 Profit from Continuing operations (285) (1.490 (92) 35 (89) (0) (76) (38) 1.702 (2.858 .515.418.352.670 2.269.542 945.269 2 1.566 41.328 (47) 229.770 (4) 82.223 586.694 49 1.277.504 74.954 314 (2) 150.039 16.149.595 444.

02 40. accrued mark up and other recievable Short term investments Fund placements Taxation Cash and bank balance Non current asset held for sale Total Assets EQUITY AND LIABILITIES Share capital and reserves Share capital .844 0.29 49.52 0.844 2.994 100.05 88.591 1.550.02 7.846.693 0.140.674 (8.734 1.09 138.90 (12.66 0.127.257.788 325.31 2.201.12 0.212.69) (14.62 1.277.494.105 30.853 18.352 693.108 1.632.893 3.536 1.278 2.63 (0.827) 19.337.43 4.490 0.562 1.705 1.203 17.VERTICAL ANALYSIS OF FINANCIAL STATEMENTS (PKR 000’) 2012* Amount % 2011 Amount % Amount 2010 % 2009 Amount % 2008 Amount % 2007 Amount % ASSETS Non Current Assets Property and equipment Investment properties Stock exchange membership cards and room Long term investments Long term loan and advance Long term security deposits 8.41 0.853 12.43 59.632.300 10.32 2.411 12.418.694 1.867 85.693 31.00 127.239.87 0.00 153.08 28.858 62.255.632.07 9.07) (0.542 945.729.01 0.423 4.874 11.379 2.09 100.454 3.69 100.42) 100.493 13.85 100.975.211 33.494 6.92 50.901 (56) 18.01 9.546 1.112.000 700.668 4.01 0.185 0.25 10.07 0.275 5.063 0.905 1.84 744 7.907 10.654 3.418.384) * Eighteen Month period ended December 31.278.15 13.49 (0.201 28.00 758.044) 3.70 58.00 7.02 0.504 74.49 36.89 0.243 1.18 17.853 5.858 113.269.12 0.584.16 2.593.45 154.40) (0.00 1.56 66.40 10.185 10.535 41.508 13.50 9.10 11.37 67.517 7.09 1.03 0.04 100.328 229.359.844 0.537.30 100.99 100.622 99.16 532.21 0.756 3.332 12.561.747 15.702 4.277.56 (0.396 1.70 150.438 0.495 4.453.898 288.149.66) 0.99) (14.08 87.994 12.25 18.191 11.444 15.297 571.702 (2.716.370 46.net Total Equity and Liabilities PROFIT AND LOSS Income Return on Investments Gain on sale of investments Income from long term loans and funds Placements Other Income Revaliuation of investments at fair value through Profit & Loss 850.78 24.029 1.239 87.605 2.770 0.05 11.01 75.076 124.393 534 7.00 10.92 76.482 2.59 81.054 9.489.66 67.09 0.66 16.593 0.080 100.81 55.16 2.499 9.00 82.228 1.328 3.846.75 0.485 528.86 14.67 11.201 20.67 0.401 (1.720 11.97 100.659.770 0.494.35 2.325 2.777 0.054 2.61 23.165.86 100.521 (679.989.284.609) (2.61) 100.474.520.496 0.086.983.20 0.566 846.01 88.529 28.03 5.945 1.27 53.824 16.88 (0.44 10.227.632.184.471) 7.975 1.01 (0.43 1.25 2.00 23.00 537 20.655) 1.00 410.095.30 913 913 Profit from Continuing operations (8.693 21. 2012 Annual Report 2012 25 .88 90.761.775 19.85 0.35 0.858 4.22 65.687 Expenditures Operating and administrative expenses Finance cost (Reversal of provision) / provision for impairment against investments Profit before taxation Taxation Current Prior 623.622.764 122.730 14.276.01 10.07 69.129.30 2.00 100.463 16.39 350.62 16.257.552 98.03 16.383.407 1.427 (12.13 523.23 83.95 0.182 1.037.066 2.82 100.20 11.45 2.94 100.039 16.91 10.03 75.44) 32.01 69.01 0.593 323.608 4.36 2.493 20.595 444.954 (2.00 79.159.939.383.412.195 519.361 855.000 7.609) 2.01 0.89 100.770 12.05 0.56 10.413.01 0.152 222.23 2.01 81.889) 1.810 2.00 629.500 0.68 1.302.287 49.93 228.743.352.423 0.343) (1.26 (0.01 0.927 1.994 3.312.44 15.573.19 3.490 0.609 (3.33 53.201.392 942.899) (1.362.07) 67.097.523) 15.30 100.574.01) (0.76 229.66 (129.53) 201.275 15.311 2.223 586.00 553.839.594.17 2.052 12.141 19.49 11.360 37.63 160.86 2.573.00 1.10 75.411 76.632.220.662 83.02 0.524.218 375.01 89.627 1.71 100.43 100.97 13.676 15.39 (4.65 50.00 3.46 7.302 1.281 200.09 0.511 312.418 0.01 76.49 46.692 12.61 0.270.764 9.01 0.27 0.24 557.12 16.896 2.39 24.17 3.670 2.952) (1.08 39.37 2.263.90 8.833.751.612.03 Current Assets Trade debts Loans and advances Prepayment.187.83 18.008 15.201 11.577 313.478.328 8.646.571.201 6.07 1.601.884.97 5.674 11.61) 100.44 13.683.00 95.11 0.826) (1.183 23.00 362.781 0.61 17.831 17.423 9.274 1.768) 609.817 274.648.401.03 0.12 0.02 0.00) 90.06 23.911 (391.053 4.382.639 12.24 4.364 347.269 1.201 13.669 1.525 (879.728 1.026 17.91 0.601.51 0.48 82.55 72.876 985.807.954 7.594 1.38 70.11 46.37 0.959 7.39 0.513 4.00 0.34 0.75 9.08 101.494.992 1.515.13 100.466 493.877 75.222) (520) 17.93 30.91 0.941.139 9.79 1.354 3.036 6.94 0.68) 846.65 (457.534 95.00 1.866) 2.255 37.013 3.584.200 28.413 2.591 3.733 2.37) 32.52 0.48 0.853 11.563 17.00) 0.853 1.21 7.184.83 82.187.740 0.ordinary shares preference Shares Reserves Non Current Liabilities Long term financing Current Liabilities Trade and other payable Accrued interest/ markup on borrowing Short term borrowings Current portion of long term financing Taxation .088 51.71 (111.313 32.845 2.03 0.01 30.577 109.201 9.14) (129.03 (457.63 7.92 2.508.473.148.946 0.946 1.486 (14.108 1.027.67 10.69 17.670 2.240 153.76 9.451.355.214 1.198 1.628 122.55 0.09 0.65) 0.245.01 0.629.269.775 250.460 1.00 24.416.946.

2012. Economy Macroeconomic activity in Pakistan was subdued during July 2011 – December 2012. in 1HFY13 (1) the trade deficit narrowed by 14%YoY to USD 14 billion and (2) home remittances increased by 13%YoY to USD 7. 2012.3% in 1HFY12). Nevertheless. which is likely to bode well for economic activity going forward.7% growth in FY12. JSCL also benefits from strategic long term investments including in technology. 2011 to December 31. For these reasons. It gives me immense pleasure to present to you the annual report of Jahangir Siddiqui & Co. 2012.32% in 1HFY13 (10. its investments cover all sectors including asset management. As a result.5-4.43 billion in 1HFY12. the period under review also witnessed a reduction of 450 basis points in the discount rate by the State Bank of Pakistan. GDP growth is expected at 3. The Securities and Exchange Commission of Pakistan has granted approval to the Company to change its financial year from June 30 to December 31 in accordance with the provisions of Section 238 of the Companies Ordinance. Islamic banking. upcoming repayments to the International Monetary Fund (IMF) have raised concerns on the external account front. At the same time.1 billion. Resultantly. troubled law and order in the country and political uncertainty. Accordingly the current financial year of the Company has been extended to an eighteen month period ended December 31. transportation. In financial services. resulting in 13% depreciation of the Rupee against the US Dollar during the period under review. We are therefore presenting eighteen month audited financial statements for the period from July 01. vis-à-vis 3. acute power and gas shortages. (“JSCL” or the “Company”) along with the audited standalone financial statements of the Company and Auditors’ report for the eighteen month period ended December 31. Also. Overview of JSCL JSCL is primarily an investment company in financial services and also makes long term investments in growing companies in Pakistan. investment banking. and industrial sector companies. commercial banking. media. securities brokerage and insurance. the current account recorded a surplus of USD 250 million in 1HFY13 compared to a deficit of USD 2. Ltd. 1984. investments remained largely limited. However on a positive note. inflation tapered off to 8.DIRECTORS’ REPORT TO THE SHAREHOLDERS Dear Shareholders. mostly owing to 26 JSCL .0% in FY13. the acute energy shortage continues to hamper capacity utilization within the country.

5 million as cash dividend from PICT and an in specie dividend in the form of 11.490 million as compared to PKR 986 million for the year ended June 30.2 million. (Rupees in ‘000) Profit before taxation Less: Taxation Current Prior Profit after taxation 2. The revenue of the Company has improved over last year materially due to an increase in gain on sale of investments.Equity Capital Market During July 2011 . (2) improvement in economic outlook in FY13 and (3) monetary easing by the Central Bank.277 million for the year ended June 30. your Company has redeemed the installment of one of its TFCs due on January 04.359.644 million in Government Treasury Bills and PKR 202 million in Money Market Funds. 2011.609) (2. Liquidity Position We are pleased to inform you that.629 million.609) 2. During the period the Company sold its entire holding in PICT for aggregate sale proceeds of PKR 3.67 for the year ended June 30.363 million for the eighteen month period ended December 31. During the period. Subsequent to end of the period.96 billion mainly due to sale of Company’s investment in Pakistan International Container Terminal Limited (PICT).453 million.07% of the paid-up ordinary share capital of PICT.85 compared to PKR 11. likely pick up in economic activity ahead of the general elections and strong corporate earnings growth are expected to provide a further boost to the market going forward. as at the close of the period. Overall revenues for the period under review amounted to PKR 3. PKR 1. your Company has liquidity of PKR 4. Disposal of shares of JS Global Capital Limited (JSGCL) The Company was holding 21.000 ordinary shares of Pakistan International Bulk Terminal Limited (PIBT).631 million and consequently earned a capital gain of PKR 2.362. Financial Results The Company has reported an after tax profit of PKR 2. Average daily volumes during the period improved to 136 million shares compared to 83 million shares in the previous period. Breakup value per share as at December 31. 2011. 2012.943 points. 2012 as against a loss after tax of PKR 1.500.98 as at June 30.10 compared to a Loss per share (LPS) of PKR 1. 2013 amounting to PKR 709. 2012 of the Company is PKR 17. Annual Report 2012 27 . 0.December 2012.954 (2. During the period. the KSE made a new high of 16. your Company received PKR 379. Distribution The Board is pleased to propose a final cash dividend of Re. Earnings per share (EPS) of the Company for the period under review is PKR 3.734. Gain on sale of investments increased by PKR 1.563 Investing and Financing activities during the period Disposal of Shareholding in Pakistan International Container Terminal Limited (PICT): The Company was holding 23. The effect of the recommendation is not reflected in the annexed financial statements. 2011.826 ordinary shares representing 43.75 per share out of the profits of current eighteen month period ended December 31. The gains were largely owed to (1) positive developments on Capital Gains Tax and the amnesty scheme offered by the government.000. Improvement on the domestic political front.47% of the paid up capital of JSGCL.475 million comprising of bank balances of PKR 2. the KSE-100 recorded an increase of 35% compared to an average increase of 7% in regional markets. 2011.000 ordinary shares of PICT representing 21.

the KSE 100 index grew by 35. 2010. Debt Instruments Issued by the Company . Ltd.2012 .28% to PKR 81.57 billion as at December 31.465 million from funds under management during the aforesaid period as compared to PKR 244.176 million for the period from January 01. 2012 as compared to a profit after tax of PKR 359. Ltd. These ratings denote a very low expectation of credit risk. if any. which rose to PKR 122. Your Company disposed of its entire share holding in the ordinary shares of JSIL by way of swapping with the allotment of fresh issue of shares of JSBL at a discount to the face value and without offering right on the basis of swap ratio of 1. The balance sheet of the Bank grew by 51.18% and other income by 56.683 million during the year ended on June 30. and its Subsidiaries annexed to this annual report and is also reproduced below: JS Bank Limited (Subsidiary) The Bank has 185 branches and plans to grow its branch network further. 2006. The Company earned management fee of PKR 306.250 million was maintained at AA (Double A). the operating operating revenue of JSGCL increased by 43. Yousuf Adil Saleem & Co. mainly due to an increase in the Bank’s deposit base from PKR 41.Yousuf Adil Saleem & Co. Performance of Key Investments The performance of key investments of the Company is given in the Directors’ Report to the Consolidated Financial Statements of Jahangir Siddiqui & Co. respectively.02% of the paid up capital of JSIL. an increase of 50. 2012 to December 31.88% over the corresponding period last year. Turnover in the commodities futures market continues to show steady growth.95 billion and PKR 33.617 ordinary shares representing 52. JS Investments Limited (Sub-Subsidiary) The Assets Under Management (AUM) of the local mutual fund industry stood at PKR 334. Pakistan Credit Rating Agency (PACRA) has assigned a credit rating of AA+ (Double A plus) to the TFC issue. JS Global Capital Ltd.29% to close at 16. Corporate Financial Reporting Framework The Directors of your Company are committed to good corporate governance and confirm compliance with the corporate and financial reporting framework of the Code of Corporate Governance promulgated by the Securities and Exchange Commission of Pakistan (SECP) and contained in the Listing Regulation of the Karachi Stock Exchange Limited (KSE) for the following: 28 JSCL . 1984. This is a reflection of higher volumes at the KSE.19%. (a member firm of Deloitte Touche Tohmatsu) on the basis of breakup value of JSIL and JSBL computed by their respective auditors as per audited accounts as on April 30. The Company earned profit after tax of PKR 202. 2012. capital gain on sale of investments increased by 125. 2012 had approved an investment of up to PKR 2. 2011. (a member firm of Deloitte Touche Tohmatsu) on the basis of break up value of JSGCL and JSBL computed by their respective auditors as per audited accounts as on December 31.92 billion as at December 31.67 billion and closed-end funds having AUM of around PKR 25. During FY12 growth was also witnessed in the money market funds and Islamic income funds categories.68 billion in December 2012. the growth was recorded both in net investments and net advances which grew by 104. Beside this.000 million in JSBL by way of subscribing right shares including unsubscribed right shares.26034550 ordinary shares of the face value of PKR 10 each in JSBL for one ordinary share of the face value of PKR 10 each in JSGCL. an increase of 96. (Sub-Subsidiary) Profit after tax during the eighteen month period ended December 31.98 billion. The Bank has earned a profit after tax of PKR 708. Meanwhile the rating of the Company’s issue of TFC of PKR 1. the strong capacity for timely payment of financial commitments and strong risk absorption capacity. The Bank has also submitted a successful bid to acquire HSBC and the regulatory approvals are in process. On the assets side.100 million which was issued on November 21. 2011.45 billion as on December 31. 2012 with AUM of open-end funds at approximately PKR 305. Your Company would invest funds for subscribing right shares on announcement by JSBL.54 billion. the Company has fully settled its 5th issue of TFC of PKR 1. Privately Placed Term Finance Certificates (PPTFC) issued as an instrument of redeemable capital under Section 120 of the Companies Ordinance.729 million during the eighteen month period ended December 31..69 million. 2012 has been increased by 225.77%.47% to PKR 56.Your Company disposed of its entire share holding in the ordinary shares of JSGCL by way of swapping with the allotment of fresh issue of shares of JS Bank Limited (JSBL) at a discount to the face value and without offering right on the basis of swap ratio of 7.023.905 points which kept the investors interested in the equity market. Disposal of shares of JS Investments Limited (JSIL) The Company was holding 52. 2011 principally due to an increase in equity brokerage revenue by 34.TFC Your Company has successfully raised PKR 1. The income funds category witnessed an increase of 4. Brisk activity was witnessed in the money market during the period due to the issuance of higher amount of Government securities.98%.49 billion to PKR 62. 2012 from PKR 53.38161230 ordinary shares of the face value of PKR 10 each in JSBL for one ordinary share of the face value of PKR 10 each in JSIL.18% as compared to the year ended June 30.24% and 11.000 million from the issue of Rated.34 billion. the Bank increased its paid up capital significantly through a swap of new shares of the Bank against shares of JS Global Capital Limited and JS Investments Limited held by Jahangir Siddiqui & Co. This is the Company’s 7th issue of TFCs. Approval of Investment in JS Bank Limited (JSBL) The members of the Company in their extraordinary general meeting held on June 27.3% respectively for the period mentioned above.76%. The swap ratio was computed by the independent professional firm of Chartered Accountants namely M/s M. To meet the Minimum Capital Requirement. The swap ratio was computed by the independent professional firm of Chartered Accountants namely M/s M.

cash flows and changes in equity. Ali J. Mazharul Haq Siddiqui. Appropriate accounting policies as stated in the notes to the accounts have been consistently applied in preparation of financial statements and accounting estimates are based on reasonable and prudent judgment. 2012 while continuing as a member of the Board. No material payment is outstanding on account of taxes. The system of internal control is sound in design and has been effectively implemented and monitored. Ali Hussain Mr. The Company operates an approved contributory provident fund for all its employees eligible to the scheme. Munaf Ibrahim Mr. • • The statement of summarized key operating and financial data of the last six years appears on Page No. 2012 indicate that the value of investments of the fund is PKR 24. the results of its operations. Mr. The attendance of Directors at Board meetings were as follows: Name of Directors Meetings Eligibility Meetings Attended Mr. • • • • • Board Meetings Twelve meetings of the Board of Directors were held during the period. Lalani started his career with JSCL in 1992 and served the Company for eight years where he served as Head of Finance and Company Secretary.19 million. International Financial Reporting Standards as applicable in Pakistan and the Companies Ordinance. Lalani has previously served as CFO and Company Secretary for seven years in JSIL from 2005 to 2012. • • Corporate Affairs Appointment and Resignation of Chief Executive Officer: Mr. The Company is financially sound and is a going concern. Munaf Ibrahim resigned from the position of Chief Executive Officer of the Company on February 29. The audited financial statements for year ended June 30. duties. Suleman Lalani as the Company’s new Chief Executive Officer effective from March 01. He is a Fellow member of the Institute of Chartered Accountants of Pakistan (ICAP) and has over 20 years of experience in the financial services sector. 2012. 22. There has been no material departure from the best practices of corporate governance. as detailed in the Listing Regulations. Suleman Lalani Twelve Twelve Twelve Twelve Twelve Twelve Twelve Eight Eleven Twelve Nine Twelve Nine Nine Ten Eight Annual Report 2012 29 . Siddiqui Mr. the Board of Directors is pleased to welcome Mr. Chairman Chief Justice (R) Mahboob Ahmed Mr.• These financial statements present fairly the state of affairs of the Company. Munawar Alam Siddiqui Mr. The internal audit has been outsourced to M/s Anjum Asim Shahid Rahman Chartered Accountants (a member firm of Grant Thornton International). have been followed in preparation of the financial statements. and. Further. levies and charges. 1984 as stated in the notes attached with the accounts. Stephen Christopher Smith Mr. Proper books of account of the Company have been maintained. In November 2000 he was promoted to the position of Chief Operating Officer of Jahangir Siddiqui Investment Bank Limited where he worked till 2002. Mr.

No trades have been carried out by Directors. Chief Executive Officer. minorities. the Company has circulated the revised Code of Corporate Governance. Munaf Ibrahim are exempted. Mazharul Haq Siddiqui and Mr.Directors’ training program: Mr. JSCL’s directors namely Mr. Chief Financial Officer. These financial statements and notes are prepared in accordance with the approved accounting standards as applicable in Pakistan. Company Secretary. control system and the independence and performance of its internal and independent auditors. 2012 except as mentioned below: Name of Person Mrs. The Company’s most complex accounting policies require management’s judgment to ascertain the valuation of assets and liabilities. 30 JSCL . Further. Corporate Social Responsibility Your Company being a responsible corporate citizen. The Board of Directors has set the threshold for executives as Manager and higher grades for the purpose of disclosure of trades in the shares of the Company.25 million in these financial statements to be donated to Mahvash & Jahangir Siddiqui Foundation (MJSF). Munaf Ibrahim are also directors in MJSF. 2012 to the Board of Directors for their review and understanding. The Company has made a provision of PKR 47. children and disabled individuals. etc. The Audit Committee is comprised of three Directors and operates under terms of reference approved by the Board. Mr. The Audit Committee of the Board of Directors is responsible for monitoring the integrity of the Company’s financial statements. The Company’s accounting policies are integral to understanding the results reported. Arshat Mehboob Kalyar Relation Spouse of Executive No of Shares Sold 100. In addition to that. clean water. from Director’s Training Program. Executives and their spouses and minor children during the period from July 01. Mr. Other financial data included in the Annual Report are consistent with the data in the financial statements. Munawar Alam Siddiqui have completed their training of Corporate Governance from the Pakistan Institute of Corporate Governance (PICG). under the criteria given in Clause (xi) of the Code. well controlled and applied consistently. nutrition and housing to individuals displaced by natural calamities. Munawar Alam Siddiqui. regularly contributes towards the well being of under-privileged people. Disclosure of interest by Directors. Siddiqui and Mr.000 Sale Consideration PKR 17 per share Management’s Disclosure of Financial Responsibility The Company’s management is responsible for preparing the financial statements and related notes contained in the Annual Report. Ali J. 2011 to December 31. Suleman Lalani and Mr. Accounting policies are described in detail in the notes to the financial statements. MJSF supports projects in the areas of healthcare. education and social enterprise through sustainable development to underprivileged members of society with a special focus on women. The Company has established detailed policies and control procedures that are intended to ensure that valuation methods are fair. MJSF also works nationally to provide immediate humanitarian relief during periods of crisis by delivering medical services.

as adopted by ICAP and have satisfactory rating under Quality Control Review Program of the ICAP. Messrs Ernst & Young Ford Rhodes Sidat Hyder Chartered Accountants (a member firm of Ernst & Young Global Ltd. 2012 is annexed to this report. On suggestion of the Board Audit Committee. Annual Report 2012 31 . These ratings denote a very low expectation of credit risk. Yousuf Adil Saleem & Co. Chartered Accountants (a member firm of Deloitte Touche Tohmatsu). As the present auditors have completed their five year term. We also wish to appreciate our employees and management for their dedication and hard work and to regulators for their efforts to strengthen the financial markets. being retired offered themselves for reappointment. They have also confirmed that the firm is fully compliant with the International Federation of Accountants’ (IFAC) Guidelines of Code of Ethics. 2013 at the upcoming Annual General Meeting of the Company. Auditors The current auditors. the Board of Directors recommends the appointment of M. the Audit Committee has recommended for the appointment of M. Chartered Accountants (a member firm of Deloitte Touche Tohmatsu) for the year ending December 31.). Future Outlook With improvement in financial markets we expect the Company to continue its positive performance in 2013. continued support and patronage of clients and business partners. 2013 Pattern of Shareholding The Statement of Pattern of Shareholding of the Company as on December 31. Yousuf Adil Saleem & Co.Credit Rating The Directors are pleased to inform you that the Company has a long term rating of AA (Double A) and short term rating of A1+ (A one plus) assigned to it by PACRA. the strong capacity for timely payment of financial commitments and strong risk absorption capacity. Acknowledgement Your Directors greatly value the efforts. guidance on good corporate governance and other measures to safeguard investor rights. For and on behalf of the Board of Directors Mazharul Haq Siddiqui Chairman Karachi: March 04.

has been declared as a defaulter by that stock exchange. 2. overall corporate strategy and significant policies of the Company. 3. The directors have confirmed that none of them is serving as a director on more than seven listed companies. 6. No casual vacancy occurred on the Board during the period. 32 JSCL . At present the Board includes: Category Independent Director Executive Director Non-Executive Directors Names Chief Justice (R) Mahboob Ahmed Suleman Lalani. 2012 This statement is being presented to comply with the Code of Corporate Governance (“Code”) contained in Regulation No. Siddiqui Munawar Alam Siddiqui Ali Hussain Stephen Christopher Smith Munaf Ibrahim The independent directors meets the criteria of independence under clause i (b) of the Code.STATEMENT OF COMPLIANCE WITH THE CODE OF CORPORATE GOVERNANCE For the Eighteen Month Period Ended December 31. 35 of Listing Regulations of the Karachi Stock Exchange for the purpose of establishing a framework of good governance. CEO Mazharul Haq Siddiqui Ali J. The Company encourages representation of independent non-executive directors and directors representing minority interests on its Board of Directors. The Company has applied the principles contained in the Code in the following manner: 1. including this Company (excluding the listed subsidiaries of listed holding companies where applicable). being a member of a stock exchange. All the resident directors of the Company are registered as taxpayers and none of them has defaulted in payment of any loan to a banking company. 5. a DFI or an NBFI or. whereby a listed company is managed in compliance with the best practices of corporate governance. A complete record of particulars of significant policies along with the dates on which they were approved or amended has been maintained. The Board has developed a Vision / Mission statement. The Company has prepared a “Code of Conduct” and has ensured that appropriate steps have been taken to disseminate it throughout the Company along with its supporting policies and procedures. 4.

The minutes of the meetings were appropriately recorded and circulated. 14. Company Secretary and Mr. including their remuneration and terms and conditions of employment. The terms of reference of the Committee have been formed and advised to the committee for compliance. Mazharul Haq Siddiqui and Mr. The financial statements of the Company were duly endorsed by CEO and CFO before approval of the Board. CEO and Executives do not hold any interest in the shares of the Company other than that disclosed in the pattern of shareholding. The meetings of the Board were presided over by the Chairman and. 13. along with agenda and working papers. other executive and non-executive directors. Head of Internal Audit. 17. It comprises of 3 members. from Director Training Program. The meetings of the Audit Committee were held at least once every quarter prior to approval of interim and final results of the Company and as required by the Code. The Company has complied with all the corporate and financial reporting requirements of the Code. 12. The Board has formed a Human Resource and Remuneration Committee. arrangements are in process for other Directors for acquiring certification under Director Training Program offered by Institutions (local or foreign) that meet the criteria specified by Securities and Exchange Commission of Pakistan. The Board has been provided with the revised Code along with briefings on various stages in order for them to properly manage the affairs of the Company as representatives of members of the Company. 11. Chief Financial Officer. Further. Hasan Shahid. Munawar Alam Siddiqui are certified from Pakistan Institute of Corporate Governance (PICG). Mr. The Board has approved appointment of Mr. The Directors’ report for this period has been prepared in compliance with the requirements of the Code and fully describes the salient matters required to be disclosed. Raza Tabish Farooqui. All the powers of the Board have been duly exercised and decisions on material transactions. Mr. 15. including appointment and determination of remuneration and terms and conditions of employment of the CEO. under the criteria given in Clause (xi) of the Code. in his absence. have been taken by the Board. 10. It comprises of 3 members. by a director elected by the Board for this purpose and the Board met at least once in every quarter. of whom all are non-executive directors and the chairman of the committee is an independent director. 8. 16. of whom 2 are non-executive directors and the chairman of the Committee is a non-executive director. 9. Mr. In addition. were circulated at least seven days before the meetings. SulemanLalani and Mr. The Directors.7. Munaf Ibrahim are exempted. Annual Report 2012 33 . The Board has formed an Audit Committee. Written notices of the Board meetings. Naveed Khimani.

The statutory auditors or the persons associated with them have not been appointed to provide other services except in accordance with the Listing Regulations and the auditors have confirmed that they have observed IFAC guidelines in this regard. employees and stock exchange. was determined and intimated to directors. 19. their spouses and minor children do not hold shares of the Company and that the firm and all its partners are in compliance with International Federation of Accountants (IFAC) guidelines on code of ethics as adopted by the ICAP . 21. that they or any of the partners of the firm. 2013 34 JSCL . which may materially affect the market price of Company’s securities. prior to the announcement of interim / final results. Material/price sensitive information has been disseminated among all market participants at once through stock exchange. 23. The Board has outsourced the Internal Audit function to M/s Anjum Asim Shahid Rahman Chartered Accountants (a member firm of Grant Thornton International) who are considered suitably qualified and experienced for the purpose and are conversant with the policies and procedures of the Company. 20. The ‘closed period’. For and on behalf of the Board of Directors Mazharul Haq Siddiqui Chairman Karachi: March 04. We confirm that all other material principles enshrined in the Code have been complied with. The statutory auditors of the Company have confirmed that they have been given a satisfactory rating under the Quality Control Review program of the ICAP . and business decisions.18. 22.

in all material respects. nothing has come to our attention which causes us to believe that the Statement does not appropriately reflect the Company’s compliance. effective for the period ended 31 December 2012.Regulation (x) of Listing Regulation 35 notified by The Karachi Stock Exchange Limited requires the Company to place before the Board for their consideration and approval related party transactions. Further. A review is limited primarily to inquiries of the Company personnel and review of various documents prepared by the Company to comply with the Code. 2013 KARACHI Annual Report 2012 35 . or to form an opinion on the effectiveness of such internal controls. we are required to obtain an understanding of the accounting and internal control systems sufficient to plan the audit and develop an effective audit approach. whether the Statement reflects the status of the Company’s compliance with the provisions of the Code and report if it does not. Our responsibility is to review. Ltd. Based on our review. The responsibility for compliance with the Code is that of the Board of the Company. (the Company) to comply with the Listing Regulation No. 35 of the Karachi Stock Exchange Limited where the Company is listed. We have not carried out any procedures to determine whether the related party transactions were undertaken at arm’s length price or not. to the extent where such compliance can be objectively verified. We are only required and have ensured compliance of requirement to the extent of approval of related party transactions by the Board and placement of such transactions before the audit committee. Further. As part of our audit of financial statements. with the best practices contained in the Code. the Company’s corporate governance procedures and risks. Sub . distinguishing between transactions carried out on terms equivalent to those that prevail in arm’s length transactions and transactions which are not executed at arm’s length price recording proper justification for using such alternate pricing mechanism.REVIEW REPORT TO THE MEMBERS ON STATEMENT OF COMPLIANCE WITH THE BEST PRACTICES OF THE CODE OF CORPORATE GOVERNANCE We have reviewed the Statement of Compliance with the best practices (the Statement) contained in the Code of Corporate Governance (the Code) for the period ended 31 December 2012 prepared by the Board of Directors (the Board) of Jahangir Siddiqui & Co. all such transactions are also required to be separately placed before the audit committee. We are not required to consider whether the Board’s statement on internal control covers all risks and controls. ERNST & YOUNG FORD RHODES SIDAT HYDER CHARTERED ACCOUNTANTS Date: March 04.

Our responsibility is to express an opinion on these statements based on our audit.AUDITORS’ REPORT TO THE MEMBERS We have audited the annexed Balance Sheet of Jahangir Siddiqui & Co. statement of changes in equity and cash flow statement together with the notes forming part thereof conform with approved accounting standards as applicable in Pakistan and give the information required by the Companies Ordinance. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of any material misstatement. statement of comprehensive income . (the Company) as at 31 December 2012. to the best of our knowledge and belief. its changes in equity and its cash flows for the period then ended. It is the responsibility of the Company’s management to establish and maintain a system of internal control. in the manner so required and respectively give a true and fair view of the state of the Company’s affairs as at 31 December 2012 and its true balance of the profit. 1980 (XVIII of 1980). We conducted our audit in accordance with the International Standards on Auditing as applicable in Pakistan. we report that: (a) in our opinion. and are in agreement with the books of account and are further in accordance with accounting policies consistently applied except for the changes in accounting policies as disclosed in note 4. (b) (i) (ii) (iii) (c) (d) Ernst & Young Ford Rhodes Sidat Hyder Chartered Accountants Audit Engagement Partner: Omer Chughtai March 04. were necessary for the purpose of our audit. An audit also includes assessing the accounting policies and significant estimates made by management. as well as. We believe that our audit provides a reasonable basis for our opinion and after due verification. 2013 Karachi 36 JSCL . evidence supporting the amounts and disclosures in the financial statements. proper books of account have been kept by the Company as required by the Companies Ordinance. An audit includes examining on a test basis. 1984 (XLVII of 1984). Ltd. evaluating the overall presentation of the above said statements. its comprehensive income. the expenditure incurred during the period was for the purpose of the Company’s business. and prepare and present the above said statements in conformity with approved accounting standards and the requirements of the Companies Ordinance. in our opinion. in our opinion: the balance sheet and profit and loss account together with the notes thereon have been drawn up in conformity with the Companies Ordinance 1984 (XLVII of 1984).1 to the accompanying financial statements. statement of comprehensive income. and in our opinion no zakat was deductible at source under the Zakat and Ushr Ordinance. profit and loss account. with which concur. and the business conducted. and to the best of our information and according to the explanations given to us the balance sheet. statement of changes in equity and cash flow statement together with the notes forming part thereof (here-in-after referred to as the ‘financial statements’) for the eighteen months period then ended and we state that we have obtained all the information and explanations which. and the related profit and loss account. investments made and the expenditure incurred during the year were in accordance with the objects of the Company. 1984 (XLVII of 1984). 1984 (XLVII of 1984).

UNCONSOLIDATED FINANCIAL STATEMENTS Annual al Repor ort t 20 2012 12 37 .

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Ltd. Faysal House. 6th Floor.com UAN: +92 21 111 574 111 Fax: +92 21 3280 0163 +92 21 3280 0167 . Karachi -75530. Shahra-e-Faisal.js.Jahangir Siddiqui & Co.Pakistan WWW.