Karachi, November 19, 2012 (PPI-OT): This refers to our letter dated October 30, 2012, we enclose herewith a certified copy of certificate on residual free reserves having reference No. C-0331 dated November 13, 2012 for the issue of Bonus Shares issued by Faysal Bank’s external Auditors, A.F. Ferguson and Company, Chartered Accountants.
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, 2012, 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, 2012, 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. 1, 030,390 thousand would be higher than twenty five percent of the enhanced paid-up capital of Rs. 9,273,508 thousand.
We have reviewed the contingent liabilities outstanding as at June 30, 2012, to determine the contingent loss, if any, falling within the scope of paragraph 14 of International Accounting Standard 37, “Provision 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, 2012. The management of the Bank has given us a representation that the Bank did not have materially adverse operating results during the period ended September 30, 2012 that would deteriorate the reserves of the Bank.
The management has also given us a representation that no events or transactions have occurred during the period ended September 30, 2012 that would result in any material loss or contingent liability which may adversely affect the reserves of the Bank.
The Bank’s “Free Reserves” 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:
Acting Company Secretary
Faysal Bank Limited
Faysal House, ST.02, Shahrah-e-Faisal,
UAN: 021 111 747 747
Tel: 021 3279 5200
Fax: 021 3279 5228