Primarily to inquiries o the ban personel and review

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Unformatted text preview: primarily to inquiries o the Ban personel and review o various documents prepared by the Ban to comply with the Code. As part o our audit o inancial statements we are required to obtain an understanding o the acounting and internal control systems su icient to plan the audit and develop an e ective audit aproach. We have not caried out any special review o the internal control system to enable us to expres an opinion as to whether the Boards statement on internal control covers al controls and the e ectivenes o such internal controls. Based on our review, nothing has come to our atention, which causes us to believe that the Statement o Compliance does not apropriately re lect the Ban s compliance, in al material respects, with the best practices contained in the Code o Corporate Governance, as aplicable to the Ban or the year ended December 31, 2 6. Review Report to the Mem ers on Statement of Compliance with Best Practices of Code of Corporate Governance Ford Rhod Sidat Hyd r & Co. Chartered Acountants KARACHI: February 27, 2 7 16 Shariah Advisers Report Th Shar hold r of Ban I lami Pa i tan Limit d: The year under review was the irst year o Islamic Comercial Ban ing Operations o the Ban . During the year Ban Islami developed and executed a number o Islamic Comercial Ban ing Products in consultation with the Shariah Supervisory Board o the Ban . Curently the Ban is o ering a number o Shariah Compliant Comercial Ban ing Products which includes: D po it Product ba d on th I lamic mod of Mudarabah Islami Curent Acount Islami Bachat Acount Islami Amadni Certi icate Islami Mahana Muna a Acount Corporat Ban ing ba d on I lamic mod of Murabahah, Ijarah, Dimin hing Mu hara ah and I ti na Wor ing Capital Finance Medium & Long Term inance Leasing /Ijarah Islamic Export Re inance Scheme Structured Finance Trad Financ Leter o Credit (Sight & Usance) Leter o Guarante Forward Cover Bil Purchase Con um r Ban ing Auto Ijarah based on Islamic mode o IjarahFolowing is the mode wise brea up o the Ban 's inancing port olio. 1. Murabahah 39% 2. Ijarah 29% 3. Diminishing Mushara ah 24% 4. Istisna 8% The Ban is in the inal stages o launching Housing Finance Product. It is also worth mentioning that the Ban has suces uly underta en a transaction based on Islamic mode o Mushara ah. The Ban has also underta en an Istisna' transaction with one o the customers. Other transactions based on Mushara ah and Mudarabah are in pipeline and I expect the management wil underta e si able transactions in the FY' 7. 17 An amount o Rs. 5, is deposited by the customers as charity paid due to late payments o Ban 's dues. The amount wil be utili ed, by the Ban on behal o its customer, as per the directives o Shariah Supervisory Board o the Ban . I have also reviewed the transaction underta en by the Ban and ound that most o the transaction are done as per the sugested mechanism. However, olowing observation were made to urther improve the proces: 1. It was noted that some o the Murabahahs were underta en a ter physical veri ication o the aset sold. However, there is a ned to improve the ratio o such Murabahahs. At thethe aset sold....
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primarily to inquiries o the Ban personel and review o...

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