TIBLSep 2010

TRUST INVESTMENT BANK LIMITED
CONTENTS
Company Information 02
Branch Network 03
Directors’ Report 04
Condensed Interim Balance Sheet 06
Condensed Interim Profit & Loss Account 07
Condensed Interim Statement of Comprehensive Income 08
Condensed Interim Cash Flow Statement 09
Condensed Interim Statement of Changes in Equity 10
Notes to the Condensed Interim Financial Statements 11
Condensed Interim Consolidated Balance Sheet 21
Condensed Interim Consolidated Profit & Loss Account 22
Condensed Interim Consolidated Statement of Comprehensive Income 23
Condensed Interim Consolidated Cash Flow Statement 24
Condensed Interim Consolidated Statement of Changes in Equity 25
Notes to the Condensed Interim Consolidated Financial Statements 26

Company Information
Board of Directors
Mr. Asif Kamal Chairman

Mir Javed Hashmat Director
Syed Mohsin Raza Naqvi Director
Mr. Yusaf Saeed Director
Mr. Munawar Ali Director
Mr. Ahmad Ali Riaz Director
Mr. Humayun Nabi Jan Chief Executive
Audit Committee

Mr. Munawar Ali Chairman
Mr. Asif Kamal Member
Mr. Yusaf Saeed Member
Chief Financial Officer
Mr. Imran Hameed
Company Secretary
Mr. Awais Yasin
Auditors
Ernst & Young Ford Rhodes Sidat Hyder

Chartered Accountants
Legal Advisor
Nawaz Kasuri & Rashdeen Law Chambers
Registrars
Vision Consulting Limited

1st Floor, 3-C, LDA Flats, Lawrence Road, Lahore.
Tel: 042-36375531 & 36375339 Fax: 042-36374839
Registered Office & Head Office
23-D/1-A, Gulberg-III, Lahore.

Tel: 042-32404714-19 Fax: 042-32404720
UAN: 042-111-665-462
Email: info@trustbank.com.pk
Website: www.trustbank.com.pk

Branch Network
1. Faisalabad Branch
H. T. Plaza # 5, Ground Floor, Hockey Stadium, Susan Road, Faisalabad.
2. Sargodha Branch
60/A Railway Road, Civil Lines
(Opp. Solo Hotel), Sargodha.
3. Gujranwala Branch
Opp. Divisional Public School, Shama Stop,
GT Road, Gujranwala.
4. Multan Branch
1733/B - Ground Floor, LMQ Road,
(Central Chungi 8-9 Highway), Multan.
5. lslamabad Branch
Office No. 105, First Floor, Chanab Inn Plaza,
Jinnah Avenue, Blue Area,
Islamabad.
6. Karachi Branch
30-A, Progressive Center,
Ground Floor, PECHS. Block 6,
Main Shahrah-e-Faisal,
Karachi.
7. Peshawar Branch
Commercial Building, Jehangirabad,
University Road,
Peshawar.

Director’s Review
On behalf of the Board of Directors, I am pleased to present the quarterly financial statements (Un-audited)
of Trust Investment Bank Limited for the quarter ended September 30, 2010.
It gives me immense pleasure to report that though small but we are able to report profit for the quarter
ended September 30, 2010. While times have been tough for the economy and the Bank for past few years,
and challenges remain, it is heartening to note that concerted efforts by Sponsors, Board of director and
management, supplemented by regulator, investors and business partners has started to bear fruits.
Though the mission is far from accomplished, we have the satisfaction of having made some progress. We
had set, reduction in operating and financial cost, recommencement of lending activity and increase in
margins without compromising on higher standards of business as our objectives. Although due to overall
liquidity and economic slow down new disbursements have not been at desired levels but we have been
able to achieve significant reduction in operating and financial costs.
As the liquidity improves Bank is poised to achieve growth in earning assets and higher contribution
margins through introduction of newer products. Meanwhile the continued focus on recovery, reduction
in operating cost and better liability marketing is expected to contribute towards sustainable recovery . We
are committed to continue on this path and some further improvement in operating efficiency is expected
during remaining period of the year.
OPERATING RESULTS
The financial results for the quarter are as follows:

September September
2010 2009
Rupees in million
Revenue 205 146
Operating Expenses 35 43
Financial Expenses 157 186
Operating profit / (loss) before provision and taxation 25 (77)
Profit / (loss) before taxation 21 (145)
Profit / (loss) after taxation 20 (65)
Earnings / (loss) per Share (Rs.) 0.16 (1.12)
While management anticipates an early upward review of entity as well as instrument ratings with improved
overall economic, financial sector and Trust Bank specific conditions, Pakistan Credit Rating Agency Limited
has maintained the long term credit rating of the Bank at “BBB-”(Triple B minus), and short term credit rating
at “A3” (A Three). The ratings of secured and listed Term Finance Certificate (TFC) issues have also been
maintained at BBB (Triple B).
The directors pay their gratitude to valuable customers, shareholders, financial institutions, and regulatory
authorities for their continued support and persistent cooperation which give strength to pursue our
corporate objectives with renewed vigor.
For and on behalf

of the Board of Directors
Lahore: October 29, 2010 Humayun Nabi Jan

Chief Executive Officer

Trust Investment Bank Limited
Condensed Interim Financial Statements

For the Quarter ended 30 September 2010

Condensed Interim Balance Sheet (Un-audited)

As at 30 September 2010
(Un-audited) (Audited)
30 September 30 June
2010 2010
Assets Note Rupees Rupees
Non-current assets
Fixed assets 4 271,078,469 331,606,544
Long term investments 5 58,005,378 59,661,900
Long term loans and advances 6 339,362,946 384,583,434
Net investment in lease finance 7 697,545,246 799,852,582
Long term deposits 1,250,919 1,250,919
Deferred tax asset 525,838,319 525,838,319
Total non-current assets 1,893,081,277 2,102,793,698

Current assets
Current maturities of non - current assets 8 2,282,330,040 2,220,141,445
Short term loans and advances 9 547,363,786 477,803,204
Short term placements 16,938,718 69,015,249
Short term investments 173,511,329 359,308,883
Short term prepayments 16,914,536 17,692,155
Interest accrued 168,255,277 143,338,848
Taxation - net 2,766,487 2,646,547
Other receivables 10 60,789,174 69,595,224
Cash and bank balances 11 34,975,733 143,194,778
3,303,845,080 3,502,736,333
Assets classified as held for sale 300,656,237 300,656,237
Total current assets 3,604,501,317 3,803,392,570
TOTAL ASSETS 5,497,582,594 5,906,186,268

EQUITY AND LIABILITIES

Share capital and reserves
Share capital 892,028,729 892,028,729
Reserves (907,077,774) (916,590,757)
Total share capital and reserves (15,049,045) (24,562,028)
Surplus on revaluation of assets-net 41,343,603 72,656,103
Deficit on revaluation of investments (7,818,176) -

Non-current liabilities
Long term financing-subordinated loan 400,646,237 400,646,237
Long term financing-others 12 1,123,538,190 1,027,285,177
Long term morabaha 28,500,000 31,500,000
Long term certificates of investment 13 63,190,733 103,856,273
Deferred liabilities 6,973,707 8,090,090
Total non-current liabilities 1,919,305,346 1,810,450,285

Current liabilities
Short term borrowings 933,222,609 1,040,891,737
Short term certificates of investment 1,081,884,250 1,392,999,286
Current maturities of long term liabilities 14 1,358,176,909 1,446,251,719
Markup accrued 96,241,554 113,147,699
Trade and other payables 90,275,544 54,351,467
Total current liabilities 3,559,800,866 4,047,641,908
5,479,106,212 5,858,092,193
CONTINGENCIES AND COMMITMENTS 15

5,497,582,594 5,906,186,268

The annexed notes from 1 to 20 form an integral part of these financial statements.
chief executive director

Condensed Interim Profit and Loss Account (Un-audited)
(Un-audited) (U-audited)
30 September 30 September
2010 2009
Note Rupees Rupees
Income

Income from lease operations 78,956,082 71,654,076
Income from investments 14,667,521 14,751,756
Income from term finances 111,081,599 60,068,607
204,705,202 146,474,439

Finance cost 157,336,887 185,964,348
47,368,315 (39,489,909)

Administrative and operating expenses 35,218,857 43,005,186
12,149,458 (82,495,095)

Other operating income 20,318,147 5,411,738
32,467,605 (77,083,357)

Other operating expenses 7,026,730 211,562
Operating profit / (loss) before provisions and taxation 25,440,875 (77,294,919)

Provision against lease and term loan losses (5,000,000) (10,000,000)
Provision / impairment in the value of investment - (58,026,150)
Unrealized gain on held for trading investment 125,112 -
(4,874,888) (68,026,150)
Profit / (Loss) before taxation 20,565,987 (145,321,069)

Provision for taxation (500,000) 80,000,000

Profit / (Loss) after taxation 20,065,987 (65,321,069)

Profit / (Loss) per share - basic/ diluted 16 0.16 (1.12)



Condensed Interim Statement of Comprehensive Income (Un-audited)

(Un-audited) (Un-audited)
2010 2009
Rupees Rupees
Profit / (Loss) for the period 20,065,987 (65,321,069)

Other comprehensive income

Surplus / (Deficit) on measurement of available for
sale investments - -
Surplus on revaluation of property - -
- -

Total comprehensive Income / (loss) for the period 20,065,987 (65,321,069)


Condensed Interim Cash Flow Statement (Un-audited)

2010 2009
Note Rupees Rupees
CASH FLOWS FROM OPERATING ACTIVITIES

Profi/(Loss) before taxation 20,565,987 (145,321,069)

Adjustments for non cash items:
Depreciation and amortization 2,018,380 3,560,623
Amortization of initial transaction cost over term finance certificates 1,104,123 1,104,123
Provision for potential lease and term loan losses 5,000,000 10,000,000
Lease receivables written off 7,026,730 211,562
Finance cost 156,232,764 185,964,348
Gain on disposal of fixed assets (11,620,579) (1,504,130)
Unrealized gain on revaluation of held for trading investments (125,112) -
Provision/ impairment on investment - 58,026,150
Gain on disposal of available for sale investments (333,081) -
159,303,225 257,362,676
Operating profit before working capital changes 179,869,212 112,041,607
Changes in operating assets and liabilities:
(Increase) / decrease in:
Long term loans and advances (37,987,381) 2,000,000
Net investment in lease finance 109,753,145 21,385,947
Short term loans and advances (69,560,582) 13,740,328
Short term placements and investments 230,055,909 201,111,833
Short term prepayments 777,619 (956,308)
Interest accrued (87,341,717) (52,920,830)
Other receivables (11,370,760) (6,403,992)
134,326,233 177,956,978
Decrease in certificates of investment (345,115,036) 77,249,722
Increase / (decrease) in trade and other payables 35,933,717 (899,277)
(174,855,086) 254,307,423
Cash generated from operations 5,014,126 366,349,030

Finance cost paid (174,243,032) (207,323,727)
Taxes paid (619,940) (409,862)
Staff service cost paid (1,116,383) (3,099,830)
(175,979,355) (210,833,419)
Net cash (used in)/generated from operating activities (170,965,229) 155,515,611

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment - (259,633)
Increase in long term investments 937,500
Increase in long term deposits - 50,000
Proceeds from disposal of operating fixed assets 38,817,774 3,344,659
Net cash generated from investing activities 39,755,274 3,135,026

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long term financing 157,868,888 -
Long term morabaha repaid (3,000,000) -
Short term borrowings repaid (74,956,133) (181,599,507)
Term finance certificates repaid (74,199,210) (74,199,210)
Dividend paid (9,640) (6,877)
Net cash generated / (used in) financing activities 5,703,905 (255,805,594)
Net increase in cash and cash equivalents (125,506,050) (97,154,957)
Cash and cash equivalents at the beginning of the period 31,456,311 (162,901,213)
Cash and cash equivalents at the end of the period 17 (94,049,739) (260,056,170)


10
Condensed Interim Statement of Changes in Equity (Un-audited)
RESERVES
Capital Reserve Revenue Reserves
Unappro-
Ordinary Preference Statutory General priated profit/
Share shares reserve reserve (Accumulated Sub Total Total
losses)

---------------------------------------------Rupees---------------------------------------------

Balance as at 01 July 2009 585,528,729 - 206,758,319 61,000,000 (472,556,755) (204,798,436) 380,730,293

Total comprehensive loss for the period - - - - (65,321,069) (65,321,069) (65,321,069)

Balance at 30 September 2009 585,528,729 - 206,758,319 61,000,000 (537,877,824) (270,119,505) 315,409,224

Balance as at 01 July 2010 585,528,729 306,500,000 206,758,319 61,000,000 (1,184,349,076) (916,590,757) (24,562,028)

Total comprehensive income for the period - - - - 20,065,987 20,065,987 20,065,987
Dividend on preference shares @ Kibor+100 BPS

for the quarter ended 30 September 2010 - - - - (10,553,004) (10,553,004) (10,553,004)

Balance as at 30 September 2010 585,528,729 306,500,000 206,758,319 61,000,000 (1,174,836,093) (907,077,774) (15,049,045)


Notes to the Condensed Interim Financial Statements (Un-audited)
1. THE COMPANY’S OPERATIONS AND REGISTERED OFFICE

Trust Investment Bank Limited (“the Company”) was incorporated in 1992 as a public limited
Company under the Companies Ordinance, 1984 and is listed on Lahore, Karachi and Islamabad
Stock Exchanges. The registered office of the Company is situated at 23-D/1-A, Gulberg III,
Lahore. The Company is mainly engaged in the business of leasing and investment finance
services. It is classified as a Non-Banking Finance Company (NBFC) and is regulated by the
Securities and Exchange Commission of Pakistan (SECP).
2. STATEMENT OF COMPLIANCE

2.1 These financial statements have been prepared in accordance with approved accounting
standards as applicable in Pakistan. Approved accounting standards comprise of such
International Financial Reporting Standards (IFRS) issued by the International Accounting
Standards Board as are notified under the Companies Ordinance, 1984, the Non-Banking
Finance Companies (Establishment and Regulation) Rules, 2003 (the NBFC Rules), the Non-
Banking Finance Companies and Notified Entities Regulation, 2008 (the NBFC Regulation) and
the directives issued by the Securities and Exchange Commission of Pakistan (SECP). Wherever
the requirements of the Companies Ordinance 1984, the NBFC Rules, the NBFC Regulations or
the directives issued by the SECP differ with the requirements of IFRS, the requirements of the
Companies Ordinance 1984, the NBFC Rules, the NBFC Regulation or the directives issued by
the SECP shall prevail.
The SECP has deferred the applicability of International Accounting Standard (IAS) 39, ‘Financial
Instruments: Recognition and Measurement’ and International Accounting Standard (IAS) 40,
‘Investment Property’ through Circular No. 19 dated 13 August 2003 for Non-Banking Finance
Companies (NBFCs) providing investment finance services, discounting services and housing
finance services. In addition, the SECP has also deferred the application of International Financial
Reporting Standard (IFRS)7, ‘Financial Instruments: Disclosures’ through SRO 411(1) / 2008 on
such Non-Banking Finance Companies as are engaged in investment finance services, discounting
services and housing finance services.
2.2 Changes in accounting policies and disclosures as a result of adoption of new and amended
accounting standards in 2010

During the current year, the Bank has adopted the following new and amended IFRSs as of 21
January 2009, which have resulted in extended presentation and disclosure changes as described
below:

IAS 1 - Presentation of Financial Statements (Revised)

IFRS 8 – Operating Segments

3. SIGNIFICANT ACCOUNTING POLICIES

There is no change in accounting policies since June 2010.
30 September 2010
Additions Disposal
cost book value
Rupees Rupees
4. FIXED ASSETS
Capital work in progress - 120,050,000

Land 70,000,000 -
Office equipment and machines 3,800 840
Vehicles - 6,921,974
Furniture and fixtures - 714,340
70,003,800 127,687,154
11
2010 2010
Note Rupees Rupees
5. LONG TERM INVESTMENTS

Investment in subsidiary-at cost 5.1 60,000,000 60,000,000
Investment in Term Finance Certificates and
Bonds/Sukuks-unquoted 155,218,000 156,155,500
215,218,000 216,155,500
Less: Provision against doubtful investments 130,000,000 130,000,000
85,218,000 86,155,500

Less: Current portion of long term investments 8 27,212,622 26,493,600
58,005,378 59,661,900
5.1 This indicates investment in share capital of Trust Capital (Private) Limited which has been fully
provided.

6. LONG TERM LOANS AND ADVANCES

Secured:
Employees - considered good 17,077,015 17,429,300
Related parties - considered doubtful 453,782,161 458,295,097
Companies, organizations and individuals
Considered good 305,432,989 262,580,387
Considered doubtful 4,751,320 4,751,320
310,184,309 267,331,707
781,043,485 743,056,104
Un-secured:
Companies, organizations and individuals 219,545 219,545
781,263,030 743,275,649
Less: provision against doubtful loans 245,262,737 245,262,737
536,000,293 498,012,912
Less : current maturity 8 196,637,347 113,429,478
339,362,946 384,583,434
12
2010 2010
Note Rupees Rupees
7. NET INVESTMENT IN LEASE FINANCE

Lease payments receivable 2,561,790,883 2,674,773,890
Add: Residual value 864,178,136 897,902,871
Gross investment in leases 3,425,969,019 3,572,676,761

Less: Unearned finance income 182,451,316 209,670,062
Income suspended 189,980,546 190,423,910
Provision for lease losses 297,511,840 292,511,840
669,943,702 692,605,812
Net investment in lease finance 2,756,025,317 2,880,070,949

Less: Current portion of net investment
in lease finance 8 2,058,480,071 2,080,218,367
697,545,246 799,852,582
30 September 2010 (Un-Audited)

Not later Later than one Later
than one year and not later than five Total
year than five years years
Rupees Rupees Rupees Rupees

Gross investment 2,175,870,517 1,250,098,502 - 3,425,969,019
Less: Unearned finance income 117,390,446 65,060,870 - 182,451,316
2,058,480,071 1,185,037,632 - 3,246,517,703

30 June 2010 (Audited)


2,080,218,367 1,282,788,332 - 3,363,006,699
13
2010 2010
Note Rupees Rupees
8. Current maturities of non-current assets

Long term investments 27,212,622 26,493,600
Long term loans and advances 196,637,347 113,429,478
2,282,330,040 2,220,141,445

9 . Short term loans and advances

Short term loans 515,137,350 468,381,296
Short term advances 32,226,436 9,421,908
547,363,786 477,803,204
10. OTHER RECEIVABLES

Receivable from broker 20,658,349 18,040,877
Miscellaneous receivables from lessees 188,471,573 205,978,860
Other receivables - considered good 18,956,973 12,873,208
228,086,895 236,892,945
Less: provisions for doubtful receivable 167,297,721 167,297,721
60,789,174 69,595,224

11. CASH AND BANK BALANCES

Cash in hand 355,035 976,107
With banks in:
Current accounts 1,256,265 1,773,550
Deposit accounts 33,364,433 140,445,121
34,620,698 142,218,671
34,975,733 143,194,778
12. LONG TERM FINANCING - others
Banking companies and other financial

institutions-secured 12.1 829,131,318 658,679,095
Term finance certificates (TFC) - secured 12.2 294,406,872 368,606,082
1,123,538,190 1,027,285,177

12.1 Banking companies and other financial
institutions-secured

1,261,749,957 1,103,881,069
Less: Current portion shown under current liabilities 14 432,618,639 445,201,974
829,131,318 658,679,095

14
2010 2010
Note Rupees Rupees
12.2 Term finance certificates (TFC) - secured

TFC II-2nd Tranche 37,500,000 37,500,000
TFC III 449,820,000 524,790,000
487,320,000 562,290,000
Less: Unamortized portion of the initial transaction cost 5,473,128 6,243,918
481,846,872 556,046,082
Less: Current maturity 14 187,440,000 187,440,000
294,406,872 368,606,082

13. LONG TERM CERTIFICATE OF INVESTMENT - Unsecured

Local currency
- Financial institutions 173,333,333 203,333,333
- Corporate 10,000,340 14,000,340
- Individuals 16,600,000 16,600,000
199,933,673 233,933,673
63,190,733 103,856,273
14. CURRENT MATURITIES OF LONG TERM LIABILITIES

Term finance certificates - secured 187,440,000 187,440,000
Certificates of investment - unsecured 136,742,940 130,077,400
Long term financing from banking companies and
other financial institutions - secured
432,618,639 445,201,974
1,358,176,909 1,446,251,719

15. CONTINGENCIES AND COMMITMENTS

15.1 Contingencies

The Company has issued guarantees to various parties on behalf of clients amounting to Rs. 706.03
million (2010: Rs. 529.795 million) including guarantees to the subsidiary company amounting to Rs
367.123 million.
15.2 Commitments

Lease commitments approved but not disbursed as on balance sheet date amount to Rs.0.909 million
(2010 : Rs. 16.92 million).

15
2010 2009
Rupees Rupees
16. EARNINGS/(LOSS) PER SHARE-BASIC

Profit/(Loss) for the quarter after taxation Rupees 9,512,983 (65,321,069)
Weighted average number of ordinary shares Numbers 58,552,872 58,552,873
Profit / (Loss) per share - basic/diluted Rupees 0.16 (1.12)

There is no dilutive effect on the basic loss per share of the company.
2010 2010
Rupees Rupees
17. CASH AND CASH EQUIVALENTS
Cash and bank balances 34,975,733 143,194,778

Short term running finance (129,025,472) (161,738,467)
Placements with other banks-unsecured - 50,000,000
(94,049,739) 31,456,311
18. TRANSACTIONS WITH RELATED PARTIES

Related parties comprise of directors, entities over which directors are able to exercise significant
influence, entities with common directors, major shareholders, key management employees and
employees’ fund. The transactions and balances with related parties, other than those which have
been disclosed in the relevant notes are disclosed as follows:
2010 2009
Rupees Rupees
Subsidiary Company:
Trust Capital (Private) Limited
The outstanding loans and advances 458,295,097 288,714,918
Guarantees 367,123,929 -

Associated companies:

Newage (Private) Limited
Share capital 10,503,010 -

Mr.Zahid Rafiq

Tricon Developers ( Partnership Concern)
Installments paid for purchase of office space - 124,556,726
Amount due against leases 2,476,359 3,525,714
Finance income charged during the period 112,230 158,338
Deposit against lease arrangements 501,350 501,350

16
2010 2009
Rupees Rupees
Union Communication (Pvt) Limited

Communication services 53,644 164,414

Polygon Developers
Amount due against term finances - 195,000,000
Finance income charged during the period - 9,631,395

Ahmed Khalil
Finance income charged during the period - 255,222

Tricon Developers Limited
Long term financing-subordinated loan 400,646,237 -

Others

Employees’ retirement fund
Payments made 2,649,990 3,099,820

19. DATE OF AUTHORIZATION

These unconsolidated condensed interim financial statements were authorized for issue on
October 29, 2010 by the Board of Directors.

20. GENERAL

Figures have been rounded off to the nearest of rupee.
17
18
Trust Investment Bank Limited

& Subsidiary
Condensed Interim Consolidated Financial Statements

19
20
Consolidated Condensed Interim Balance Sheet (Un-audited)

As at 30 September 2010
2010 2010
Assets Note Rupees Rupees
Non-current assets
Fixed assets 4 306,162,565 365,711,709
Long term loans and advances 5 77,054,537 168,648,388
Net investment in lease finance 6 697,545,246 799,852,582
Deferred tax asset 525,838,319 525,838,319
Total non-current assets 1,664,586,964 1,921,943,817

Current assets
Current maturities of non - current assets 7 2,466,144,128 2,345,442,321
Short term loans and advances 8 547,363,786 478,102,071
Short term placements 16,938,718 69,015,249
Short term investments 184,792,489 374,732,139
Short term prepayments 16,914,536 17,692,155
Interest accrued 151,099,288 143,338,848
Taxation - net 2,905,410 2,785,497
Other receivables 9 53,267,834 69,802,884
Cash and bank balances 10 42,916,398 143,382,191
3,482,342,587 3,644,293,355
Assets classified as held for sale 399,750,107 469,750,107
Total current assets 3,882,092,694 4,114,043,462
TOTAL ASSETS 5,546,679,658 6,035,987,279

EQUITY AND LIABILITIES

Share capital and reserves
Share capital 892,028,729 892,028,729
Reserves (866,615,801) (791,245,363)
Total share capital and reserves 25,412,928 100,783,366
Surplus on revaluation of assets-net 41,343,603 72,656,103
Deficit on revaluation of investments (7,818,176) -

Non-current liabilities
Long term financing-subordinated loan 400,646,237 400,646,237
Long term financing-others 11 1,104,795,691 1,005,418,927
Long term morabaha 28,500,000 31,500,000
Long term certificates of investment 12 63,190,733 103,856,273
Deferred liabilities 6,973,707 8,493,215
Total non-current liabilities 1,900,562,847 1,788,987,160

Current liabilities
Short term borrowings 933,222,609 1,040,891,737
Short term certificates of investment 1,081,884,250 1,392,999,286
Current maturities of long term liabilities 13 1,358,176,909 1,446,251,719
Markup accrued 95,598,537 111,623,282
Trade and other payables 118,296,151 81,794,626
Total current liabilities 3,587,178,456 4,073,560,650
5,487,741,303 5,862,547,810
CONTINGENCIES AND COMMITMENTS 14
5,546,679,658 6,035,987,279


chief executive director 21

Consolidated Condensed Interim Profit and Loss Account (Un-audited)
2010 2009
Note Rupees Rupees
Income

Income from lease operations 78,956,082 71,654,076
Income from investments 14,667,521 14,751,756
Income from term finances 31,500,322 60,068,607
Income from brokerage - 256,967
125,123,925 146,731,406

Finance cost 157,643,733 188,248,163
(32,519,808) (41,516,757)

Administrative and operating expenses 35,853,744 45,578,338
(68,373,552) (87,095,095)

Other operating income 20,099,833 5,427,605
(48,273,719) (81,667,490)

Other operating expenses 7,026,730 211,562
Operating loss before provisions and taxation (55,300,449) (81,879,052)

Provision against lease and term loan losses (5,000,000) (10,000,000)
Provision / impairment in the value of investment - (58,026,150)
Unrealized loss on held for trading investment (4,016,985) -
(9,016,985) (68,026,150)
Loss before taxation (64,317,434) (149,905,202)

Provision for taxation (500,000) 80,000,000

Loss after taxation (64,817,434) (69,905,202)

Loss per share - basic/ diluted 15 (1.29) (1.19)

22
Condensed Interim Consolidated Statement of Comprehensive Income (Un-audited)

2010 2009
Rupees Rupees
Profit / (Loss) for the period (64,817,434) (69,905,202)

Other comprehensive income

Surplus / (Deficit) on measurement of available for
sale investments - -
Surplus on revaluation of property - -
- -

Total comprehensive Income / (loss) for the period (64,817,434) (69,905,202)

chief executive director 23

Condensed Interim Consolidated Cash Flow Statement (Un-audited)

01 July to 01 July to
2010 2009
Note Rupees Rupees
CASH FLOWS FROM OPERATING ACTIVITIES
Profi/(Loss) before taxation (64,317,434) (149,905,202)

Adjustments for non cash items:
Depreciation and amortization 2,217,070 3,560,623
Amortization of initial transaction cost over term finance certificates 1,104,123 1,104,123
Provision for potential lease and term loan losses 5,000,000 10,000,000
Lease receivables written off 7,026,730 211,562
Finance cost 156,539,610 188,248,163
Gain on disposal of fixed assets (11,365,382) (1,504,130)
Unrealized gain on revaluation of held for trading investments 4,016,985 -
Provision/ impairment on investment - 58,026,150
Gain on disposal of available for sale investments (333,081) -
164,206,055 259,646,491
Operating profit before working capital changes 99,888,621 109,741,289
Changes in operating assets and liabilities:
(Increase) / decrease in:
Long term loans and advances (46,710,615) 8,606,678
Net investment in lease finance 109,753,145 21,385,947
Short term loans and advances (69,261,715) 5,516,058
Short term placements and investments 234,198,005 201,111,833
Short term prepayments 777,619 (898,519)
Interest accrued (7,760,440) (52,920,830)
Other receivables (3,625,760) 6,825,126
217,370,239 189,626,293
Decrease in certificates of investment (345,115,036) 77,249,722
Increase / (decrease) in trade and other payables 36,511,165 (6,685,013)
(91,233,632) 260,191,002
Cash generated from operations 8,654,989 369,932,291

Finance cost paid (173,668,478) (209,607,542)
Taxes paid (619,913) (673,989)
Staff service cost paid (1,519,508) (3,321,618)
(175,807,899) (213,603,149)
Net cash generated /(used in) from operating activities (167,152,910) 156,329,142

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment - (3,570,882)
Increase in long term investments 3,187,500 2,000,000
Increase in long term deposits - (931,200)
Proceeds from disposal of operating fixed assets 37,384,956 4,319,659
Net cash generated from investing activities 40,572,456 1,817,577

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long term financing 157,868,888 -
Long term morabaha repaid (3,000,000) -
Short term borrowings repaid (74,956,133) (181,599,507)
Term finance certificates repaid (71,075,459) (74,199,210)
Dividend paid (9,640) (6,877)
Net cash generated / (used in) financing activities 8,827,656 (255,805,594)
Net increase in cash and cash equivalents (117,752,798) (97,658,875)
Cash and cash equivalents at the beginning of the period 31,643,724 (161,161,593)
Cash and cash equivalents at the end of the period 16 (86,109,074) (258,820,468)

24 chief executive director

Condensed Interim Consolidated Statement of Changes in Equity ((Un-audited)
RESERVES
Capital Reserve Revenue Reserves
Unappro-
Ordinary Preference Statutory General priated profit/
Share shares reserve reserve (Accumulated Sub Total Total
losses)

---------------------------------------------Rupees---------------------------------------------

Balance as at 01 July 2009 585,528,729 - 206,758,319 61,000,000 (473,852,074) (206,093,755) 379,434,974

Balance at 30 September 2009 585,528,729 - 206,758,319 61,000,000 (543,757,276) (275,998,957) 309,529,772

Balance as at 01 July 2010 585,528,729 306,500,000 206,758,319 61,000,000 (1,059,003,682) (791,245,363) 100,783,366


Dividend on preference shares @ Kibor+100 BPS
for the period ended 30 September 2010 - - - - (10,553,004) (10,553,004) (10,553,004)

Balance as at 30 September 2010 585,528,729 306,500,000 206,758,319 61,000,000 (1,134,374,120) (866,615,801) 25,412,928



25
Notes to the Consolidated Condensed Interim Financial Statements (Un-audited)
1. THE GROUP’S OPERATIONS AND REGISTERED OFFICE

Trust Investment Bank Limited and its subsidiary company (“the Group”) comprises of holding
company Trust Investment Bank Limited (“TIBL”) and a wholly owned subsidiary company Trust
Capital (Private) Limited (“TCPL).

Trust Investment Bank Limited was incorporated in 1992 as a public limited Company under the
Companies Ordinance, 1984 and is listed on Lahore, Karachi and Islamabad Stock Exchanges.
The registered office of TIBL is situated at 23-D/1-A, Gulberg III, Lahore. TIBL is mainly engaged
in the business of leasing and investment finance services. It is classified as a Non-Banking
Finance Company (NBFC) and is regulated by the Securities and Exchange Commission of
Pakistan (SECP).

Trust Capital (Private) Limited was incorporated as a private limited company on 20 June 2008
under the Companies Ordinance, 1984. TCPL is engaged in the business of stock brokerage,
portfolio management and trading in listed securities on all the three Stock Exchanges of Pakistan.
The registered office of TCPL is located at 23-D/1-A, Gulberg-III, Lahore. TCPL is a member of
the Lahore Stock Exchange (Guarantee) Limited.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with approved accounting
standards as applicable in Pakistan. Approved accounting standards comprise of such
International Financial Reporting Standards (IFRS) issued by the International Accounting
Standards Board as are notified under the Companies Ordinance, 1984, the Non-Banking
Finance Companies (Establishment and Regulation) Rules, 2003 (the NBFC Rules), the Non-
Banking Finance Companies and Notified Entities Regulation, 2008 (the NBFC Regulation) and
the directives issued by the Securities and Exchange Commission of Pakistan (SECP). Wherever
the requirements of the Companies Ordinance 1984, the NBFC Rules, the NBFC Regulations or
the directives issued by the SECP differ with the requirements of IFRS, the requirements of the
Companies Ordinance 1984, the NBFC Rules, the NBFC Regulation or the directives issued by
the SECP shall prevail.
The SECP has deferred the applicability of International Accounting Standard (IAS) 39, ‘Financial
Instruments: Recognition and Measurement’ and International Accounting Standard (IAS) 40,
‘Investment Property’ through Circular No. 19 dated 13 August 2003 for Non-Banking Finance
Companies (NBFCs) providing investment finance services, discounting services and housing
finance services. In addition, the SECP has also deferred the application of International Financial
Reporting Standard (IFRS)7, ‘Financial Instruments: Disclosures’ through SRO 411(1) / 2008 on
such Non-Banking Finance Companies as are engaged in investment finance services, discounting
services and housing finance services.
Changes in accounting policies and disclosures as a result of adoption of new and amended
accounting standards in 2010

During the current year, the Bank has adopted the following new and amended IFRSs as of 21
January 2009, which have resulted in extended presentation and disclosure changes as described
below:

IAS 1 - Presentation of Financial Statements (Revised)

IFRS 8 – Operating Segments

3. SIGNIFICANT ACCOUNTING POLICIES
There is no change in accounting policies since June 2010.

26
30 September 2010
Additions Disposal
cost book value
Note Rupees Rupees
4. FIXED ASSETS
Capital work in progress - 120,050,000

Office equipment and machines 3,800 65,799
Vehicles - 7,483,508
Furniture and fixtures - 714,340
70,003,800 128,313,647

2010 2010
Rupees Rupees
5. LONG TERM LOANS AND ADVANCES

Secured:

Employees - considered good 17,077,015 17,429,300
Companies, organizations and individuals
Considered good 440,209,412 389,729,897
Considered doubtful 237,098,826 250,735,305
677,308,238 640,465,202
694,385,253 657,894,502
Un-secured:

Companies, organizations and individuals 219,545 219,545
694,604,798 658,114,047
Less: provision against doubtful loans 237,098,826 250,735,305
457,505,972 407,378,742
Less : current maturity 7 380,451,435 238,730,354
77,054,537 168,648,388
27
2010 2010
Note Rupees Rupees
6. NET INVESTMENT IN LEASE FINANCE

Lease payments receivable 2,561,790,883 2,674,773,890
Add: Residual value 864,178,136 897,902,871
Gross investment in leases 3,425,969,019 3,572,676,761

Less: Unearned finance income 182,451,316 209,670,062
Income suspended 189,980,546 190,423,910
Provision for lease losses 297,511,840 292,511,840
669,943,702 692,605,812

Less: Current portion of net investment
in lease finance 7 2,058,480,071 2,080,218,367
697,545,246 799,852,582
30 September 2010 (Un-Audited)


2,058,480,071 1,185,037,632 - 3,246,517,703

30 June 2010 (Audited)


2,080,218,367 1,282,788,332 - 3,363,006,699
28
2010 2010
Note Rupees Rupees
7. Current maturities of non-current assets

Long term loans and advances 380,451,435 238,730,354

2,466,144,128 2,345,442,321

8. Short term loans and advances

Short term loans 515,137,350 468,680,163
Short term advances 32,226,436 9,421,908

547,363,786 478,102,071
9. OTHER RECEIVABLES

Receivable from broker 20,663,349 18,040,877
Miscellaneous receivables from lessees 188,471,573 205,978,860
Other receivables - considered good 11,414,633 13,080,868

220,549,555 237,100,605
Less: provisions for doubtful receivable 167,297,721 167,297,721

53,251,834 69,802,884

10. CASH AND BANK BALANCES

Cash in hand 355,035 976,107

With banks in:
Current accounts 9,196,930 1,644,951
Deposit accounts 33,364,433 140,761,133

42,561,363 142,406,084

42,916,398 143,382,191

11. LONG TERM FINANCING - others

Banking companies and other financial
institutions-secured 11.1 829,131,318 658,679,095
Term finance certificates (TFC) - secured 11.2 275,664,373 346,739,832

1,104,795,691 1,005,418,927

11.1 Banking companies and other financial
institutions-secured
1,261,749,957 1,103,881,069
Less: Current portion shown under current liabilities 13 432,618,639 445,201,974

829,131,318 658,679,095

11.2 Term finance certificates (TFC) - secured

TFC II-2nd Tranche 37,500,000 37,500,000
TFC III 431,077,501 502,923,750

468,577,501 540,423,750
Less: Unamortized portion of the initial
transaction cost 5,473,128 6,243,918

463,104,373 534,179,832

275,664,373 346,739,832

29
2010 2010
Note Rupees Rupees
12. LONG TERM CERTIFICATE OF INVESTMENT - Unsecured

Local currency
- Financial institutions 173,333,333 203,333,333
- Corporate 10,000,340 14,000,340
- Individuals 16,600,000 16,600,000
199,933,673 233,933,673
63,190,733 103,856,273
13. CURRENT MATURITIES OF LONG TERM LIABILITIES

Term finance certificates - secured 187,440,000 187,440,000
Certificates of investment - unsecured 136,742,940 130,077,400
Long term financing from banking companies and
other financial institutions - secured
432,618,639 445,201,974
1,358,176,909 1,446,251,719

14. CONTINGENCIES AND COMMITMENTS

14.1 Contingencies

The Company has issued guarantees to various parties on behalf of clients amounting to Rs. 706.03
million (2010: Rs. 529.795 million) including guarantees to the subsidiary company amounting to Rs
367.123 million.
14.2 Commitments

Lease commitments approved but not disbursed as on balance sheet date amount to Rs.0.909 million
(2010 : Rs. 16.92 million).

2010 2009
Rupees Rupees
15. EARNINGS/(LOSS) PER SHARE-BASIC

Profit/(Loss) for the quarter after taxation Rupees (75,370,438) (69,905,202)
Weighted average number of ordinary shares Numbers 58,552,872 58,552,873
Profit / (Loss) per share - basic/diluted Rupees (1.29) (1.19)

There is no dilutive effect on the basic loss per share of the company.
30
2010 2010
Rupees Rupees
16. CASH AND CASH EQUIVALENTS
Cash and bank balances 42,916,398 143,382,191

Short term running finance (129,025,472) (161,738,467)
Placements with other banks-unsecured - 50,000,000
(86,109,074) 31,643,724
17. TRANSACTIONS WITH RELATED PARTIES

Related parties comprise of directors, entities over which directors are able to exercise significant
influence, entities with common directors, major shareholders, key management employees and
employees’ fund. The transactions and balances with related parties, other than those which have
been disclosed in the relevant notes are disclosed as follows:
2010 2009
Rupees Rupees
Newage (Private) Limited
Mr.Zahid Rafiq
Tricon Developers ( Partnership Concern)
Installments paid for purchase of office space - 124,556,726
Amount due against leases 2,476,359 3,525,714
Finance income charged during the period 112,230 158,338
Deposit against lease arrangements 501,350 501,350
Union Communication (Pvt) Limited
Communication services 53,644 164,414
Polygon Developers
Finance income charged during the period - 9,631,395
Ahmed Khalil
Finance income charged during the period - 255,222
Tricon Developers Limited
Long term financing-subordinated loan 400,646,237 -
Others
Employees’ retirement fund
Payments made 2,649,990 3,099,820

18. DATE OF AUTHORIZATION

These consolidated condensed interim financial statements were authorized for issue on October 29,
2010 by the Board of Directors.

19. GENERAL
Figures have been rounded off to the nearest of rupee.

31
32

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TRUST INVESTMENT BANK LIMITED

Condensed Interim Balance Sheet 06

Condensed Interim Profit & Loss Account 07

Condensed Interim Statement of Comprehensive Income 08

Condensed Interim Cash Flow Statement 09

Condensed Interim Statement of Changes in Equity 10

Notes to the Condensed Interim Financial Statements 11

Condensed Interim Consolidated Balance Sheet 21

Condensed Interim Consolidated Profit & Loss Account 22

Condensed Interim Consolidated Statement of Comprehensive Income 23

Condensed Interim Consolidated Cash Flow Statement 24

Condensed Interim Consolidated Statement of Changes in Equity 25

Notes to the Condensed Interim Consolidated Financial Statements 26

Mr. Asif Kamal Chairman

Chief Financial Officer

Mr. Imran Hameed

Mr. Awais Yasin

Ernst & Young Ford Rhodes Sidat Hyder

Nawaz Kasuri & Rashdeen Law Chambers

Vision Consulting Limited

Registered Office & Head Office

23-D/1-A, Gulberg-III, Lahore.

The financial results for the quarter are as follows:

For and on behalf

Lahore: October 29, 2010 Humayun Nabi Jan

Trust Investment Bank Limited

Condensed Interim Financial Statements

Condensed Interim Balance Sheet (Un-audited)

 chief executive director

Operating profit / (loss) before provisions and taxation 25,440,875 (77,294,919)

Profit / (Loss) before taxation 20,565,987 (145,321,069)

chief executive director

Condensed Interim Statement of Comprehensive Income (Un-audited)

Profit / (Loss) for the period 20,065,987 (65,321,069)

 chief executive director

Condensed Interim Cash Flow Statement (Un-audited)

CASH FLOWS FROM OPERATING ACTIVITIES

chief executive director 

Balance as at 01 July 2009 585,528,729 - 206,758,319 61,000,000 (472,556,755) (204,798,436) 380,730,293

Dividend on preference shares @ Kibor+100 BPS

chief executive director

1. THE COMPANY’S OPERATIONS AND REGISTERED OFFICE

Capital work in progress - 120,050,000

7. NET INVESTMENT IN LEASE FINANCE

Gross investment in leases 3,425,969,019 3,572,676,761

Net investment in lease finance 2,756,025,317 2,880,070,949

30 September 2010 (Un-Audited)

2,058,480,071 1,185,037,632 - 3,246,517,703

30 June 2010 (Audited)

2,080,218,367 1,282,788,332 - 3,363,006,699

8. Current maturities of non-current assets

10. OTHER RECEIVABLES

12. LONG TERM FINANCING - others

Banking companies and other financial

14. CURRENT MATURITIES OF LONG TERM LIABILITIES

Weighted average number of ordinary shares Numbers 58,552,872 58,552,873

Profit / (Loss) per share - basic/diluted Rupees 0.16 (1.12)

17. CASH AND CASH EQUIVALENTS

Cash and bank balances 34,975,733 143,194,778

18. TRANSACTIONS WITH RELATED PARTIES

Union Communication (Pvt) Limited

chief executive director

Trust Investment Bank Limited

chief executive director

chief executive director

chief executive director