Karachi: Further to our letter dated October 26, 2011, with regard to the Financial Results for the third quarter ended September 30, 2011, we enclose herewith certificate dated October 28, 2011 on residual free reserve from our Auditors, M/s. A.F. Ferguson and Co., Chartered Accountants as required under the Sub Rule (iii) of Rule (6) of the Companies (Issue of Capital Rules, 1996), confirming that the free reserve and surpluses retained after issue of recommended Bonus Shares will not be less than twenty five percent of the enhanced capital. A certified copy of the said certificate is enclosed.
Certificate on Residual Free Reserves for the Issue of Bonus Shares
As requested by you we have ascertained from the Bank’s un-audited financial statements for the half year ended June 30, 2011, which have been reviewed by us and approved by the Board of Directors of the Bank, that the residual free reserves, as at June 30, 2011. In terms of the meaning given to free reserves in the Companies (Issue of Capital) Rules, 1996 after the proposed issue of bonus shares of a face value of Rs 915,902 thousand would be higher than twenty five percent of the enhanced paid-up capital of Rs 8,243,118 thousand.
We have reviewed the contingent liabilities outstanding as at June 30, 2011, to determine the contingent loss, if any, falling within the scope of paragraph 14 of International Accounting Standard 37, “Provisions, Contingent Liabilities and Contingent Assets” and confirm that no such liabilities are deductible from the aforementioned Free Reserves” of the Bank.
We would like to highlight that we have not reviewed/ audited the financial statements of the Bank for the period subsequent to June 30, 2011. The management of the Bank has represented to us that the Bank did not have materially adverse operating results during the quarter ended September 30, 2011 that would deteriorate the reserves of the Bank. The management has also represented to us that no events or transactions have occurred during the quarter ended September 30, 2011 that would result in any material loss or contingent liability which may adversely affect the reserves of the Bank.
The Bank’s “Free Reserve” retained after appropriating the reserve for issue of bonus shares do not include any reserves created as a result of revaluation of fixed assets or any intangible or fictitious assets such as preliminary expenses or goodwill.
For more information, contact:
Faysal Bank Limited
Faysal House, ST.02, Shahrah-e-Faisal,
UAN: 021 111 747 747
Tel: 021 3279 5200
Fax: 021 3279 5226