2021

Annual Report
TABLE OF
CONTENTS
03 04
Mission & Vision Statements The Institute

05 06
The Council Profile of Council Members

13 14
Notice of AGM Schedule of Elections

17 19
President's Review Council's Report

22 23
Auditor's Report Audited Financial Statements
VISION STATEMENT

Promotion of corporate culture in

Pakistan for good governance, as
envisaged in the civilized world
through professional expertise in
the field of corporate laws and
secretarial practices.

MISSION STATEMENT

To examine, groom and promote

high quality company secretaries
and professionals in corporate
sector who are able to meet the
demands of present days and also
to equip them with knowledge to
face the futuristic challenges.
THE INSTITUTE
The Institute of Corporate Secretaries of Pakistan (ICSP) was established in 1973 to develop and
regulate the profession of company secretaries in Pakistan. The Institute was formed as a company
limited by guarantee under the Companies Act 1913 which was later substituted by the Companies
Ordinance, 1984 and recently was replaced by the Companies Act 2017.

The ICSP is functioning as a recognized professional body of corporate secretaries which is

imparting professional education and prudence in the areas of secretarial practice. Besides, to equip
its students with knowledge for meeting challenges of modern corporate and financial world, the
ICSP is also giving commands in the subjects of corporate & business laws, corporate governance,
accounting, human resource and information technology. The Institute has three classes of
membership; Licentiate, Associate and the Fellow. A person who passes final exam conducted by the
Institute becomes entitled for basic cadre titled as Licentiate however, if, at that time he holds at least
three years' working experience and also meets certain other requirements then he can directly be
admitted as an Associate. The Licentiate, on acquiring three years' working experience and after
meeting certain other requirements can apply for Associate membership. Whereas, after completion
of five years' continuous period as associate and on meeting certain other requirements an Associate
member can apply for Fellow membership of the Institute.

The affairs of the ICSP are run by a National Council comprised of 12 members who are elected by
the members of the Institute through a defined election process. The National Council is assisted by a
Branch Council known as Karachi BranchCouncil. The members of the National Council are elected
for three years whereas members of KarachiBranch Council are elected for a periodof one year only.
Every year, members of the National Council elect amongst themselves five office bearer; a
President, two Vice Presidents, a Secretary and a Treasurer. The day to day matters are administered
through the Secretariate which is supervised by the office bearers.

Auditors : M/s. Naveed Zafar Ashfaq Jaffery & Co. Chartered Accountants,
1st Floor, Modern Motors House, Beaumont Road, Karachi-75530.

Bankers : MCB Islamic Bank Limited

Allied Bank Limited
Bank AL-Habib Limited
Faysal Bank Limited
Meezan Bank Limited
Bank Islami Pakistan Limited

Registered Office : 683-C, Allama Iqbal Road, Block 2, PECHS, Karachi, Pakistan.
Ph # 021-34394646-47

Email : [email protected] (for general queries)

[email protected] (for students related matters)
[email protected] (for members related matters)

Website : www.icsp.org.pk
 THE COUNCIL

President Mr. Mohammed Zaki FCIS, FCA, FPFA

Past President Syed Shakeel Ur Rehman FCIS, FCA, PFA

Vice President Mr. Abdul Rehman FCIS, FCMA

Vice President Mr. Muhammad Ahmed FCIS

Secretary Syed Maqsood Ahmed FCIS, MA (Eco), LLB

Treasurer Mr. Salman Ahmed FCIS, FCA, CIA, CISA

Members Ms. Nusrat Latif FCIS, LLB

Mr. S. Shamim Akhtar FCIS, FPFA, LLB
Mr. Saquib Jawed FCIS, FPFA
Mr. Nadeem Akhtar FCIS, FCMA
Mr. Muhammad Javed Ansari FCIS, FCMA, FPFA
Mr. Zafar Mumtaz Burney FCIS, FCMA
Mr. Tahir Mehmood FCIS, LLB
THE COUNCIL PROFILE

Mr. Mohammed Zaki

President

Mr. Mohammed Zaki is currently serving the Institute as the President. He has also
served the institute as the President in two previous terms, during the period from
2016 to 2017 and from 2018 to 2019. He became fellow member of the Institute of
Corporate Secretaries of Pakistan (ICSP) in 1994 and he is also fellow member of the
Pakistan Institute of public Finance Accountants (PIPFA) and the Institute of
Chartered Accountants of Pakistan (ICAP). He is a dynamic and well known
professional. He has over 38 years diversified experience in the fields of accounting,
auditing, general management strategy & financial planning, people's management
and corporate affairs. He worked for the leading multinational and national
companies of the country. Since 1994, he is engaged with Interflow group of
companies. At present he is serving this group as Group Director Finance.
THE COUNCIL PROFILE

Syed Shakeel Ur Past

Rehman
President

Syed Shakeel-ur-Rehman is the past president of the Institute of Corporate Secretaries of

Pakistan (ICSP). He became member of the Institute in the year 1993 and Serving the
Institute's Councils since last 23 years. He has been a member and Chairman of the
Karachi Branch Council of the Institute during 1997-1999 and since 2000 is serving
National Council of the Institute in different capacities. He is a fellow member of the
Institute of Corporate Secretaries of Pakistan, fellow member of the Institute of Chartered
Accountants of Pakistan and fellow member of the Pakistan Institute of Public Finance
Accountants. Syed Shakeel ur Rehman is a meticulous professional and is familiar among
the professionals for his introspective and prudent approach and excellent leadership
qualities. He has a diversified professional experience of over 33 years in the field of
financial services, accounting, audit, business consultancy and taxation. During his
professional career, he served various organizations at senior management positions and
his last employment was as chief operating officer of a financial institution. He also
represented the ICSP on the Board of Pakistan Institute of Corporate Governance as a
director. Since 18 years, he is running a chartered Accountant firm as proprietor.
THE COUNCIL PROFILE
Mr. Abdul Rehman is currently serving the Institute as Vice President and
Chairman Examination & Education Committee. He is a fellow member
of the Institute of Corporate Secretaries of Pakistan and a fellow member
of the Institute of Cost and Management Accountant of Pakistan. He has
over 30 years rich experience in the fields of financial management,
financial and cost accounting, budgeting, corporate finance, taxation,
secretarial matters, project management and Intemal Audit. His exposure
encompasses the manufacturing, trading and service sectors, mainly
automotive, engineering, Leasing, Modaraba. Real Estate and modern
chain of stores. He has worked in his professional career at senior
management positions as CFO GM Finance, Company Secretary, GM
Projects, Chief Internal, Auditor and Business Analyst, GM Real Estate
and Corporate Affairs. Presently, he is engaged in providing selective
corporate advisory and management consulting services.

Mr. Abdul Rehman

Vice President

Mr Muhammad Ahmed is a fellow member of the Institute of

Corporate Secretaries of Pakistan. He is serving the National
Council of ICSP since many years. At present he is the Vice
President of the ICSP He has a vast experience of corporate and
consumer financing with different financial organizations. He
worked at senior positions at leasing financial institution. After
acquiring rich experience of 21 years .He established his own
financial consultancy & construction business. Before electing
as member of the National Council, he has also served the ICSP
as a member of Karachi Branch Council for about six years.

Mr. Muhammad Ahmed

Vice President
THE COUNCIL PROFILE
Syed Maqsood Ahmad is a fellow member of the Institute of
Corporate Secretaries of Pakistan. He became the member of the
Institute in the year 1999. He is serving the Institute since many
years and at present, he is serving as secretary By profession, he
is a Lawyer and is the member of the Sindh Bar Council, Karachi
Bar Association and Sindh High Council Bar Association. He has
worked in different senior management positions with reputable
national and multinational organizations. He has served ICSP as
deputy chairman of Branch Council and member of the National
Council. He has established a law firm and providing legal,
Corporate, IPR and Allied services.

Syed Maqsood Ahmed

Secretary

Mr. Salman Ahmed is the fellow member of the Institute and has been
serving it in different capacities since many years. He became member of
the Institute in the year 2001 In 2012.he was elected as a member Karachi
Branch Council and since 2015 he has been a member of the National
Council. In 2017, he was also entrusted with the responsibility of the
Institute's accounting & financial reporting function, as its treasurer. He is
also a fellow member of the Institute of Chartered Accountants of
Pakistan (ICAP), a Certified Information Systems Auditor (CISA) and a
Certified Internal Auditor (CIA). He has been serving the corporate sector
for almost two decade in the fields of accounting, finance, audit MIS and
corporate affairs. His professional experience encircles different listed
unlisted, multinational and local companies operating in Textile, Leasing,
Packaging, Engineering and Retail sectors, presently, he is associated
With a large scale company, operating in steel & alloy sector.

Mr. Salman Ahmed

Treasurer
THE COUNCIL PROFILE
Ms. Nusrat Latif is a fellow member of the Institute of Corporate
Secretaries of Pakistan (ICSP) since 2016. Before elected as
National Council member, she has also been serving as Member
of the Karachi Branch Council of ICSP in 2015. She has
academic qualification with B.COM, M. A. Economics and LLB
and has diversified professional experience of over 12 years in the
field of corporate advisory and secretarial practice. She is
associated with Moore Shekha Mufti, Chartered Accountants in
its Corporate Advisor Services Segment since April 2009 till date.
Presently, she is serving as Executive Director Corporate
Advisory Services in Moore Shekha Mufti, Chartered
Accountants.

Ms. Nusrat Latif

Member

S. Shamim Akhter is the member of the Institute of Corporate

Secretaries of Pakistan (ICSP)_ He has served the Institute in the
capacity of Secretary for many years and presently, he is a member of
National Council, He has also been a member and chairman of the
Karachi Branch Council of the Institute during 2001-2014. He is a
fellow member of the Institute of Corporate Secretaries of Pakistan
and Fellow member of the Pakistan Institute of public Finance
Accountants (PIPFA). S. Shamim Akhter is a bachelor of law and a
member of Sindh and Karachi Bar Councils. He has over 30 years'
experience in the field of corporate laws, finance, accounting, tax and
auditing. After serving a reputable firm of Chartered Accountants in
the capacity of Audit Manager for 20 year, he has established his own
consulting firm.

Mr. Shamim Akhter

Member
THE COUNCIL PROFILE
Mr. Saquib Jawed is serving the Council since many years. He is a
fellow member of the Institute of Corporate Secretaries of Pakistan and
a fellow member of Pakistan Institute of Public Finance Accountants
(PIPFA). He has also served the ICSP as Chairman Karachi Branch
Council. He is a hardworking professional and during his professional
career, he had worked for different renowned organizations in various
capacities engaged in the fields Of textiles, pharmaceutical, trading,
duty free shops etc. He has a vast experience in the fields of finance,
taxation, auditing and accounting. At present, he is working for a media
group i.e as Chief Financial Officer.

Mr. Saquib Jawed

Member

Zafar Mumtaz Burney is a member Of the Council of the Institute of

Corporate Secretaries Of Pakistan (ICSP). He became member of the
Institute in the year 1992. He holds fellow membership of the Institute
of Corporate Secretaries of Pakistan, Institute of Cost & Management
Accountants of Pakistan and Pakistan Institute of Public Finance
Accountants. After serving at a reputated chartered accountant firm as
audit trainee and supervisor, he joined the biggest Development
Financial Institution of the country, namely, National Development
Finance Corporation (NDFC) and served there for 16 years.
Afterwards, he joined Allied Bank of Pakistan where from, he recently
retired after serving 14 years. His working experience of 38 years
includes exposure of legal affairs, banking operations, audit and
accounts project financing etc Lastly, he served ABL in the capacity of
Manager Legal and now persuing legal advisory service

Mr. Zafar Mumtaz Burney

Member
THE COUNCIL PROFILE
Mr. Nadeem Akhter is a fellow member of the Institute of Cost
& Management Accountants of Pakistan and fellow member of
the Institute of Corporate Secretaries of Pakistam He served for
more than 17 years on senior positions in various multinational
and national organisations including rich experience of almost
eight years in insurance industry. He is serving the Institute since
many years as a member Of the National Council.

Mr. Nadeem Akhter

Member

Mr. Muhammad Javed Ansari is a fellow member of the Institute of Corporate

Secretaries of Pakistan (ICSP). He is a fellow member of the Institute of Cost and
Management Accountants of Pakistan (ICMAP) and fellow member of the
Pakistan Institute of Public Finance Accountants (PIPFA). He has diversified
professional experience of over 19 years in the fields of secretarial practice,
finance/accounts, audit and taxation. During his professional career, he served
various organization at middle management to senior management positions.
Presently, he is serving as Company Secretary in PNSC, a public sector
organization. He is serving the Institue since many years as a member of the
National Council and prior to that he served as Secretar y Of Karachi branch
council.
Mr. Muhammad Javed Ansari
Member

Mr. Tahir Mehmood is a fellow member of the Institute of Corporate Secretaries of

Pakistan (ICSP) since 2012. Before elected as National Council member, he has also
served as Member of the Karachi Branch Council of ICSP. He is a fellow member of
Institute of Chartered Secretary & Managers and Member of Institute of Certified
Internal Control Auditor. Academically, he is having Master Degree in Commerce and
LLB in Law. He has diversified professional experience of over 20 years in the field of
secretarial practice and legal consultancy. During his professional career, he has served
various organization at middle management to senior management positions. Presently
he is serving as Company Secretary BRR Guardian Modaraba managed by BRR
Investments (Private) Limited, listed on Karachi Stock Exchange in Pakistan.

Mr. Tahir Mehmood

Member
The 47th Annual General Meeting of The Institute of Corporate Secretaries of Pakistan will be held at
Registered office situated at 683-C, Allama Iqbal Road, Block 2, PECHS, Karachi, Pakistan on
Thursday, October 28, 2021 at 6:30 PM.

AGENDA
1. To confirm the minutes of the 46th Annual General Meeting held on October 28th, 2020.

2. To review & adopt the Annual Report of the Council and Audited Financial Statements of the
Institute along with Auditors' Report for the year ended 30th June 2021.

3. To appoint the auditors for the next year, i.e. 2021-22. Being eligible, the present auditors, viz
M/s. Naveed Zafar Ashfaq Jaffery & Co., Chartered Accountants have consented to be appointed
for the next term.

4. To elect 05 members of Karachi Branch Council for one year.

5. Any other business with the permission of the Chair.

By Order of the Council

Syed Maqsood Ahmed

Secretary

Karachi:
October 05, 2021

Note:

Only those members, whose annual subscription for 2021-22 is paid by October 23rd, 2021, shall be
eligible to contest and vote. Members, who seek to contest the election, may file their nomination papers
at Registered Office of the Institute on or before October 23, 2021 up to 4:00 pm (Format of nomination
paper is enclosed). Voting shall be in person and Licentiate members are not eligible to contest or vote

13 | I C S P
 S. Task Target Date
No.

1 List of members open for inspection. 23-10-2021

(between 10:00-12:30 pm)

2 Last date for filing of nomination papers 23-10-2021

(till 4:00 pm)

3 Scrutiny of nomination papers in presence of candidates at 25-10-2021

the Registered Office of the Institute. (between 04:00-06:00 pm)

4 Filing of appeals, if any, against the rejection of nomination 27-10-2021

papers. (between 10:00 am to 1:00 pm)

5 Election Commissioner to hear the appeals and announce 28-10-2021

the final list of the candidates.

6 AGM 28-10-2021

7 Election of Karachi Branch Council END OF AGM

Note:

● At the time of filing of nomination paper, the members contesting for Karachi Branch Council shall pay
a fee of Rs. 500.

● Only those Members, whose annual subscription for 2021-2022 is paid by October 23, 2021 shall be
eligible to contest or cast votes.
Nomination Form
The Secretary,
The Institute of Corporate Secretaries of Pakistan
683-C, Allama Iqbal Road,
Block 2, PECHS,
Karachi.

Dear Sir,

I hereby propose Mr./Ms./Mrs. S/o. D/o W/o. a member

of the Institute of Corporate Secretaries of Pakistan (Membership No. ) for the forthcoming
election of the Karachi Branch Council scheduled to be held on October 28, 2021

Signature

Name:

Membership No:

Dated:

I S/o. D/o. W/o. a

member of the Institute of Corporate Secretaries of Pakistan (Membership No. ) hereby second
the above proposal.

Signature

Name:

Membership No:

Dated:

I S/o. D/o. W/o.

(Membership No. ________ ) hereby give my consent to contest as a candidate for the above
election.

Signature

Dated: .

This nomination form should reach to the above address on or before October 23, 2021 (at the latest 4
pm) in the sealed envelope marked as: NOMINATION PAPER FOR KARACHI BRANCH
COUNCIL'S ELECTION.

15 | I C S P
Undertaking
(By the Candidate)
I ____________________________________________ Membership
No._______________________ a candidate for the election of Karachi Branch Council hereby
undertake on oath that I will abide by the election rules of the Institute of Corporate Secretaries of
Pakistan and the directives of the Council on election in the letter and spirit, particularly the
following:

i) I will refrain from canvassing in any form or shape directly or indirectly through any person
including friend(s), relative(s), supporter(s) and agent(s)

ii) I will neither form group nor panel overtly or covertly on any basis nor will be a member of
such group or panel.

iii) I will not influence any member to vote for me or any other candidate through pamphlet(s),
brochure(s), card(s) or by other means of communication.

Signature Date of Membership

CNIC

Email address Phone/Cell Nos. __________________

I am thankful to Allah Almighty for providing me further opportunity to serve as the President of the
Institute in the third tenure and in this capacity to review the year 2021. I am indeed obliged to the
members of the current and previous National Councils of the Institute for their continues confidence.

The year 2021 has been a very challenging year due to COVID-19 pandemic that halted economic
activities at global scale. More than 34 million people have been infected by COVID-19 with 1.25
million unfortunate fatalities. The institute being an educational body was critically affected and all its
activities remained intermittently suspended. However, the Secretariat was opened physically on
rotation basis of its departments as directed by the Provincial Government by prioritizing the work after
taking all the safety and precautionary measures. Work from Home was also encouraged for the staff
to ensure continuity of usual business operations for all the stakeholders. The staff level meetings,
Councils meetings, were conducted as per agreed schedule.

It is an accepted fact that in today’s fast paced and constantly changing global environment, only
those organizations endure and grow which not only keep on moving forward but transform, adapt and
evolve proactively in line with modern technological and professional global trends.

The institute’s branding and recognition initiatives remained the foremost priority in order to create an
impact both locally and globally. ICSP shall continue to focus on effective implementation of marketing
strategies for its stakeholders by employing various marketing techniques such as active presence of
ICSP on the Internet and through presentations to various institutions.

17 | I C S P
The Institute realizes the importance of values and ethics being critical attributes for a professional. It
upholds excellence in core competencies of the profession adding value to the corporate world
promoting corporate governance in line with the international best practices.

We have envisioned that our profession and qualification should be widely recognized locally and
internationally. To facilitate continued improvement in bilateral relations and mutual recognition among
the institutes of the region, we have been consistently in touch with few foreign institutes for
collaborations and affiliations. This will allow institutes to recognize each other's members and make
lots of exemptions available to students on equivalent basis.

The Seminars and workshops activity had been discontinued since last few of years, I have advised the
current council members to recommence the same and also to organize workshops/conferences on
Corporate Law, Secretarial Practices, Good Corporate Governance locally and in collaboration with
international institutes for the promotion of secretarial profession in Pakistan in general and creation of
opportunities for our members as well as students in particular.

I assure you that the present Council is striving, in spite of the challenges, to make your institute an e-
institute where all respective procedures will be transformed into a fast, unified and simple process
with minimum human involvement. Looking forward, I have observed that our Institute is becoming the
only authorized and recognized body that is capable of producing potential company secretaries in
Pakistan.

ICSP has always emphasized on the professional development, positive engagement with the
profession development, imparting leadership skills in corporate sector. The Council has performed its
diligent responsibility of introduction and implementation of growth-oriented policies and there after
vigilant supervision of management

I express my appreciation for all the Council members for their support all the time. I am indebted for
the council for reposing confidence upon me 3rd time as the president. . I would like to offer my special
thanks to our Past President Syed Shakeel Ur Rehman for his continuous guidance and active
support.

In the end, I will add that the Council is focusing institutional excellence, students' attractions for
successful career and great value-based services to its members.

I once again confidently mention that our institute InshAllah will become a Center of Professional
Excellence for promoting company secretarial profession in the country and also a benchmark for
Good Corporate Governance. May Allah give us courage and strength to achieve our goals.

Mohammed Zaki
President
October 05, 2021
The Council of the Institute of Corporate Secretaries of Pakistan takes pleasure in presenting its 47th
Annual Report along with Audited Financial Statements of the Institute for the year ended June 30,
2021.

GOVERNANCE
As per consistent practice and in accordance with the provisions of clause 26 of the Article of
Association of the Institute, the council is composed of twelve elected members, which runs the day to
day affairs through five office bearers elected by them for each year.

Office Bearers
The five-office bearers for the year 2021 are as under: -

1. Mr. Mohammed Zaki (President)

2. Mr. Abdul Rehman (Vice President)
3. Mr. Muhammad Ahmed (Vice President)
4. Syed Maqsood Ahmed (Secretary)
5. Mr. Salman Ahmed (Treasurer)

Karachi Branch Council

For the year 2021 required nomination were not received for forming the Karachi Branch Council
hence, the Karachi Branch Council was not in placed.

19 | I C S P
STANDING AND OTHER COMMITTEES
The following Committees were constituted for the year 2021. The name of chairman of each
Committee is mentioned against each:

Name of committee Chairman

1. Executive Committee Mr. Mohammed Zaki

2. Examination and Education Committee Mr. Abdul Rehman
3. Audit Committee Mr. Tahir Mehmood
4. Seminar & Publication Committee Ms. Nusrat Latif
5. Building Committee Syed Shakeel –Ur-Rehman

STATISTICS OF THE COUNCIL MEETINGS

During the period from July 2020 till June 2021, seven meetings of the National Council were held
which have following statistics. The meetings considerably reduced due to measures advised by
NCOC to avoid COVID-19 from thereafter SOP has to be followed maintaining social distancing.

NAME DESIGNATION MEETING HELD MEETING

ATTENDED

Mr. Mohammed Zaki President 7 7

Syed Shakeel-Ur-Rehman Past President 7 7

Mr. Abdul Rehman Vice President 7 7

Mr. Muhammad Ahmed Vice President 7 5

Syed Maqsood Ahmed Secretary 7 7

Mr. Salman Ahmed Treasurer 7 4

S. Shamim Akhter Member 7 4
Mr. Zafar M. Burney Member 7 4
Mr. Saquib Jawed Member 7 0
Mr. Nadeem Akhtar Member 7 1
Mr. Muhammad Javed Ansari Member 7 5
Ms Nusrat Latif Member 7 2
Mr. Tahir Mehmood Member 7 5
EDUCATION AND EXAMINATION
The Institute is primarily focused for providing Company Secretaries in the country who act as a
backbone in bringing the excellence and good governance in Corporate Sector.

Every year examinations of the Institute are conducted in the month of Jan and July simultaneously in
Karachi, Lahore and Islamabad. As mentioned earlier, during the year under review one examination
was held as per approved schedule during Jan 2021 at Karachi, Lahore and Islamabad, while
examination of July 2020 could not take place due to COVID-19 and restrictions and closure of
educational activities.

There passing ratio of part or final qualified has also been observed very low due to high rate of
absentees. However, it is important to mention that our focus has been on quality rather than
increasing the strength of students and qualified.

The applicability of Corporate Governance regulations coupled with good practices is indispensable for
the development for the secretarial profession in Pakistan.

Besides, for those companies where Corporate Governance is not applicable by law, jobs for
Company Secretaries are not created rather they are shared as an additional responsibility with
finance.

The following students were declared passed in final examination (Jan-2021) during year 2020-21, As
stated above, the Exams for the term July 2020 were not conducted due to the impositions of the
restrictions upon educational institution on account of COVID-19.

1 – Ms. Darkshan

2 – Muhammad Kashif Fazlani

3 – Adnan Ullah Khan

4 – Asad Ullah Saleem

5 – Rizwan Haider

6- Naveed Nawaz

MEMBERSHIP
The qualified members of the Institute is standing with a total strength of 1025 members, which
includes 49 licentiates, 581 associate and 395 fellow members.

JOB PLACEMENT ACTIVITIES

This activity to help our students and our members seeking job and companies looking for professionals
has been remained has very low rather stagnant.

21 | I C S P
ACKNOWLEDGEMENTS
The Council sincerely express its appreciation to its all members especially those who have served in
any capacity or contributed in any activity of the Institute. The Council would also like to thank the
Securities & Exchange Commission of Pakistan for its continued support.

The Council is also thankful to the Institute of Cost and Management Accountants of Pakistan for its
continued support and providing facilities to hold examinations in Lahore and Islamabad. The Council
also appreciates the support and guidance of the past presidents for the active role guidance and
support. The Council also expresses its appreciation to the staff of the Institute for their hard work and
dedication.

By the order of the Council

Syed Maqsood Ahmed

Secretary

Karachi
October 05, 2021
The Following member was admitted as Fellow Member during 2020-
2021

General Manager

23 | I C S P
 The Following members were admitted as Associate Members during
2020-2021

Talal Abdul Rauf

A-914
Fauji Foundation

Deputy Manager

Muhammad Khurram Maqsood

A-915

Jubilant Foods (Pvt) Ltd

Manager Finance
25 | I C S P
 INDEPENDENT AUDITORS’ REPORT
TO THE MEMBERS OF THE INSTITUTE OF CORPORATE SECRETARIES OF PAKISTAN

Report on the Audit of the Financial Statements

Opinion

We have audited the annexed financial statements of The Institute of Corporate Secretaries of
Pakistan (the Institute), which comprise the statement of financial position as at June 30, 2021, and the
statement of comprehensive income, the statement of cash flows ,the statement of changes in fund, for
the year then ended, and notes to the financial statements, including a summary of significant
accounting policies and other explanatory information, and we state that we have obtained all the
information and explanations which, to the best of our knowledge and belief, were necessary for the
purposes of the audit.

In our opinion and to the best of our information and according to the explanations given to us, the
statement of financial position, the statement of comprehensive income, the statement of cash flows
and the statement of changes in fund together with the notes forming part thereof conform with the
accounting and reporting standards as applicable in Pakistan and give the information required by the
Companies Act, 2017 (XIX of 2017), in the manner so required and respectively give a true and fair view
of the state of the Institute's affairs as at June 30, 2021 and of the surplus for the year then ended.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in
Pakistan. Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report. We are independent of
the Institute in accordance with the International Ethics Standards Board for Accountants’ Code of
Ethics for Professional Accountants as adopted by the Institute of Chartered Accountants of Pakistan
(the Code) and we have fulfilled our other ethical responsibilities in accordance with the Code. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.

Information Other than the Financial Statements and Auditor’s Report Thereon

Management is responsible for the other information. The other information comprises the Councils’
report but does not include the financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially
misstated. If, based on the work we have performed, we conclude that there is a material misstatement
of this other information; we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Council for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in
accordance with the accounting and reporting standards as applicable in Pakistan and the requirements
of Companies Act, 2017(XIX of 2017) and for such internal control as management determines is
necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Institute’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless management either intends to liquidate the Institute or to
cease operations, or has no realistic alternative but to do so.
Council are responsible for overseeing the Institute’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with ISAs as applicable in Pakistan will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs as applicable in Pakistan, we exercise professional judgment
and maintain professional scepticism throughout the audit. We also:
 Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
 Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Institute’s internal control.
 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
 Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Institute’s ability to continue as a going
 concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the Institute to
cease to continue as a going concern.
 Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events
in a manner that achieves fair presentation.

We communicate with the Council regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.

Report on Other Legal and Regulatory Requirements

Based on our audit, we further report that in our opinion:

a) proper books of account have been kept by the Institute as required by the Companies Act,
2017 (XIX of 2017);

b) the statement of financial position, the statement of comprehensive income, the statement of
changes in fund and the statement of cash flows together with the notes thereon have been
drawn up in conformity with the Companies Act, 2017 (XIX of 2017) and are in agreement with
the books of account and returns;

c) investments made, expenditure incurred and guarantees extended during the year were for the
purpose of the Institute’s business;

d) in our opinion, no zakat was deductible at source under the Zakat and Ushr Ordinance, 1980.

The engagement partner on the audit resulting in this independent auditor’s report is Azeem H
Siddiqui-FCA

Chartered Accountants

Dated: 05-10-2021
Karachi:
 The Institute of Corporate Secretaries of Pakistan
Statement of Financial Position
As at June 30, 2021

2021 2020
Note Rupees Rupees
ASSETS

NON-CURRENT ASSETS

Property and equipment 4 5,962,805 6,305,734

Investment property 5 2,296,242 2,590,384
Long term deposits 6 10,000 10,000
8,269,047 8,906,118
CURRENT ASSETS

Advances, prepayments and other receivables 7 13,085,706 4,353,857

Short term investments 8 60,000,000 55,000,000
Cash and bank balances 9 9,396,773 4,132,087
82,482,479 63,485,944

TOTAL ASSETS 90,751,526 72,392,062

LIABILITIES

NON CURRENT LIABILITIES

Deferred liability - gratuity 515,282 456,532

Long term deposit 10 5,400,000 5,400,000

CURRENT LIABILITIES

Accrued expenses 219,472 132,472

Advances, deposits and other payables 11 1,054,450 1,055,950
1,273,922 1,188,422

TOTAL LIABILITIES 7,189,204 7,044,954

NET ASSETS 83,562,322 65,347,108

FINANCED BY
General fund 12 83,453,022 65,237,808
Other funds 13 109,300 109,300
83,562,322 65,347,108

CONTINGENCIES AND COMMITMENTS 14 - -

The annexed notes from 1 to 23 form an integral part of these financial statements.

President Treasurer Vice President

 The Institute of Corporate Secretaries of Pakistan
Statement of Comprehensive Income
For the year ended June 30, 2021

2021 2020
Note Rupees Rupees
REVENUE

Subscriptions and fees 15 1,105,371 689,250

Rental income 16,866,432 15,213,330
Return on investments and accounts 16 3,689,017 4,972,176
Other income 17 159,555 58,750
21,820,375 20,933,506
EXPENDITURE

Salaries, allowances and benefits 18 1,984,267 1,993,631

Printing, stationery and publications 46,119 121,680
Depreciation on fixed assets 4.1 342,929 365,506
Utilities 74,384 107,983
Repairs and maintenance 28,815 13,235
Examination expenses 87,700 168,400
Communication, postage and periodicals 234,242 140,517
Depreciation on investment property 5.1 294,142 134,599
Legal and professional fees 60,000 -
Audit fee 43,200 46,400
Subscriptions and fees 164,915 100,870
Travelling and conveyance 26,510 29,266
Rent, rates and taxes 87,000 87,000
Other expenditure 19 130,938 126,656
3,605,161 3,435,743
Excess of revenue over expenditure for the year 18,215,214 17,497,763

Other comprehensive income - -

Total comprehensive income for the year transferred to General Fund. 18,215,214 17,497,763

The annexed notes from 1 to 23 form an integral part of these financial statements.

President Treasurer Vice President

 The Institute of Corporate Secretaries of Pakistan
Statment of Cash Flows
For the year ended June 30, 2021

Note 2021 2020

Rupees Rupees
CASH FLOWS FROM OPERATING ACTIVITIES
Excess of revenue over expenditure 18,215,214 17,497,763

Adjustments for non cash charges:

Depreciation on fixed assets 4.1 342,929 365,506
Depreciation on investment property 5.1 294,142 134,599
Retirement benefits 89,250 127,776
Cash flow from operating activities before working capital
18,941,535 18,125,644
changes
Working capital changes
(Increase)/decrease in current assets
Advances, prepayments and other receivables (8,731,849) (263,562)
Accrued expenses 87,000 (71,761)
Advances, deposits and other payables (1,500) 28,850
(8,646,349) (306,473)
Retirement benefits paid (30,500) (28,386)
Net cash generated from operating activities 10,264,686 17,790,785

CASH FLOWS FROM INVESTING ACTIVITIES

Additions to property and equipment - (18,304)

Net cash (used in) investing activities - (18,304)

Net increase in cash and cash equivalents 10,264,686 17,772,481
Cash and cash equivalents at the beginning of the year 59,132,087 41,359,606

Cash and cash equivalents at the end of the year 20 69,396,773 59,132,087

The annexed notes from 1 to 23 form an integral part of these financial statements.

President Treasurer Vice President

 The Institute of Corporate Secretaries of Pakistan
Statement of Changes in Fund
For the year ended June 30, 2021

General Other Total

Fund Funds
Rupees Rupees Rupees

Balance as on July 1, 2019 47,740,045 109,300 47,849,345

Excess of revenue over expenditure

for the year ended June 30, 2019 17,497,763 - 17,497,763

Balance as on June 30, 2020 65,237,808 109,300 65,347,108

Excess of revenue over expenditure

for the year ended June 30, 2021 18,215,214 - 18,215,214

Balance as on June 30, 2021 83,453,022 109,300 83,562,322

The annexed notes from 1 to 23 form an integral part of these financial statements.

President Treasurer Vice President

 The Institute of Corporate Secretaries of Pakistan
Notes to the Financial Statements
For the year ended June 30, 2021

1 STATUS AND ACTIVITIES

The Institute of Corporate Secretaries of Pakistan ("the Institute") is a company limited by Guarantee,
incorporated in 1973 in Karachi under the Companies Act, 1913 (now Companies Act, 2017). The
principal activity of the Institute is the promotion and education of company secretaries and
administrators in the country. The registered office of the Institute is located at 683-C, Allama Iqbal
Road, Block 2, PECHS, Karachi-75400.

2 BASIS OF PREPARATION
2.1 Statement of compliance
These financial statements have been prepared in accordance with the 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 notified under the
Companies Act 2017 (the Act) by SECP and the requirements of the Fifth schedule of the Companies Act
2017. Whenever, the requirements of the Act or directives issued by SECP differs with the requirement
of IFRS , the requirements of the Act or the directives will prevail.
After due consideration of the available choices in the selection of an appropriate accounting &
reporting framework, as provided through notification SRO 1092 (I)/ 2018 dated September 03 , 2018,
the Council of the Institute has preferred and formally adopted the International Financial Reporting
Standards as notified under the Companies Act 2017 by SECP over the other alternates, which are the
IFRS for SME issued by the International Accounting Standards Board and the Accounting Standards for
Non Profit Organizations (NPOs) issued by the Institute of Chartered Accountants of Pakistan.

2.2 BASIS OF MEASUREMENT

2.2.1 Accounting convention

These financial statements are prepared under historical cost basis.
2.2.2 Functional and presentation currency
These financial statements are presented in Pakistan Rupees, which is also the Institute's functional
currency. All financial information presented in Pakistan Rupee has been rounded off to the nearest
Rupee.

2.3 Use of estimates and judgments

The preparation of financial statements in conformity with approved accounting standards, as
applicable in Pakistan, requires management to make judgments, estimates and assumptions that affect
the application of policies and the reported amounts of assets, liabilities, income and expenses. The
estimates and associated assumptions are based on historical experience and various other factors that
are believed to be reasonable under the circumstances, the results of which form the basis of making
the judgments about the carrying values of assets and liabilities that are not readily apparent from other
sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period in which the estimate is revised if the revision affects only that
period, or in the period of the revision and future periods if the revision affects both current and future
periods.
Judgments made by management in the application of approved accounting standards, as applicable in
Pakistan, that have significant effect on the financial statements and estimates with a significant risk of
material adjustment in the next year are discussed in note 22 to these financial statements.
3 SIGNIFICANT ACCOUNTING POLICIES

3.1 Staff retirement benefits

The institute operates an unfunded Gratuity scheme for all its eligible employees. The employees
become eligible to gratuity entitlement after having rendered more than two years of their
employment service to the Institute. The gratuity entitlement is equivalent to twenty days gross salary
for each completed year of service, after initial completion of two years' service.

3.2 Property and equipment

- Operating fixed assets except capital work-in-progress are stated at cost less accumulated
depreciation and impairment losses, if any. Capital work-in-progress are stated at cost
accumulated to the balance sheet date. Cost of leasehold land is not amortized since the lease
is renewable at nominal price at the option of the lessee.
- Depreciation is charged to income on reducing balance method at the rates indicated in note
4.1 of the financial statements. Depreciation on additions to operating fixed assets is charged
from the month in which an item is acquired or capitalized while no depreciation is charged for
the month in which the item is disposed off.
- Normal repairs and maintenance are charged to Statement of comprehensive income
- Residual values, if not insignificant are reassessed annually.

- Where the carrying amount of assets exceeds its estimated recoverable amount it is written
down immediately to its recoverable amount.

- Gains or losses on sale of fixed assets are included in income currently.

3.2.1 Right -of-use asset

Effective July 1, 2019, the right-of-use asset is initially measured based on the initial measurement of
lease liability, plus any initial direct costs incurred and an estimate of costs to be incurred to dismantle
and remove the underlying asset or to restore the underlying asset or the site on which it is located.

The right-of-use asset is subsequently measured at cost model. The right of use asset is depreciated on
a straight line method over the lease term as this method most closely reflects the expected pattern of
consumption of future economic benefits. The right-of-use asset is reduced by impairment losses, if any,
and adjusted for certain remeasurements of the lease liability.
The Company has elected to apply the practical expedient not to recognise right-of-use assets and lease
liabilities for short term leases that have a lease term of 12 months or less and leases of low-value
assets. The lease payments associated with these leases are recognised as an expense on a straight line
basis over the lease term.

3.3 Investment properties

These are stated at cost less accumulated depreciation and accumulated impairment losses, if any.
The depreciation is charged to the statement of profit and loss applying the straight line method at the
rate specified in note 6.1 to the financial statements. Depreciation on additions is charged from the
month in which the asset is put to use and on deletion upto the month immediately preceding the
deletions.
Repairs and maintenance are charged to the statement of profit and loss as and when incurred. Major
renewals and improvements are capitalised and the assets so replaced, If any, are retired. Gain or loss
on disposals is taken to the statement of profit or loss for the year.
3.4 Revenue recognition
- Income from examination fees, seminars and magazine publications is recognized on accrual
basis.
- Income from subscription is recognized on receipt of subscription on a prudence basis and
donation is recognized on receipt basis.
- Interest on PLS Saving account is recognized on time proportion basis taking into account
applicable rate of return.
- Rental income from property is recognized in revenue and expenditure account on a straight
line basis over the term of the lease. Lease incentives granted are recognized as an integral part
of total rental income, over the term of the lease. It also include the value received on account
of utilization of facilities.

3.5 Receivables
These are stated at cost less impairment losses, if any. Balances, which are considered irrecoverable, are
written off.

3.6 Payables
Liabilities and other amounts payable are recognized and carried at cost, which is the fair value of the
consideration to be paid in the future for goods and services received, whether or not billed to the
Institute.

3.7 Borrowings
Borrowings are recognized initially at cost, less attributable transaction cost. Subsequent to initial
recognition, borrowings are stated at amortized cost with any difference between cost and redemption
value being recognized in the statement of comprehensive income over the period of the borrowings
on an effective interest basis.

3.8 Borrowing costs

All mark-up, interest and other related charges are taken to the revenue and expenditure account
currently.

3.9 Financial assets

3.9.1 Classification and initial measurement

The Company classifies its financial assets in the following three categories:

(a) financial assets measured at amortized cost.

(b) fair value through other comprehensive income (FVOCI);
(c) fair value through profit or loss (FVTPL); and
(a) Financial assets measured at amortized cost
A financial asset is measured at amortized cost if it is held within business model whose
objective is to hold assets to collect contractual cash flows, and its contractual terms give rise
on specified dates to cash flows that are solely payments of principal and interest on principal
amount outstanding.
Such financial assets are initially measured at fair value plus transaction costs that are directly
attributable to the acquisition or issue thereof.
 (b) Financial assets at FVOCI
A financial asset is classified as at fair value through other comprehensive income when either:

(a) it is held within a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets and its contractual terms give rise on
specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding; or
(b) it is an investment in equity instrument which is designated as at fair value through
other comprehensive income in accordance with the irrevocable election available to
the Company to at initial recognition.

Such financial assets are initially measured at fair value plus transaction costs that are directly
attributable to the acquisition or issue thereof.
(c) Financial assets at FVTPL
A financial asset shall be measured at fair value through profit or loss unless it is measured at
amortised cost or at fair value through other comprehensive income, as aforesaid.

Such financial assets are initially measured at fair value.

3.9.2 Subsequent measurement

(a) Financial assets measured at amortized cost

These assets are subsequently measured at amortized cost (determined using the effective
interest method) less accumulated impairment losses.
Interest / markup income, foreign exchange gains and losses and impairment losses arising
from such financial assets are recognized in the profit and loss account.
(b) Financial assets at FVOCI
These are subsequently measured at fair value less accumulated impairment losses.
A gain or loss on a financial asset measured at fair value through other comprehensive income
in accordance is recognised in other comprehensive income, except for impairment gains or
losses and foreign exchange gains and losses, until the financial asset is derecognised or
reclassified. When the financial asset is derecognised the cumulative gain or loss previously
recognised in other comprehensive income is reclassified from equity to profit or loss as a
reclassification adjustment (except for investments in equity instruments which are designated
as at fair value through other comprehensive income in whose case the cumulative gain or loss
previously recognized in other comprehensive income is not so reclassified). Interest is
calculated using the effective interest method and is recognised in profit or loss.

(c) Financial assets at FVTPL

These assets are subsequently measured at fair value.
Net gains or losses arising from remeasurement of such financial assets as well as any interest
income accruing thereon are recognized in profit and loss account.

3.9.3 Impairment
The carrying value of the Institute's financial assets are reviewed at each balance sheet date to
determine whether there is any indication of impairment of any asset or a group of assets. If any such
indication exists, the recoverable amount of such assets is estimated. An impairment loss is recognized
if carrying amount of an asset exceeds its recoverable amount. Impairment losses are recognized in the
revenue and expenditure account.
3.9.4 De-recognition
Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or
have been transferred and the Modaraba has transferred substantially all risks and rewards of ownership.

3.10 Financial liabilities

Financial liabilities are classified as measured at amortized cost or 'at fair value through profit or loss' (FVTPL). A
financial liability is classified as at FVTPL if it is classified as held for trading, it is a derivative or it is designated as
such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses,
including any interest expense, are recognized in the statement of profit and loss account.

Financial liabilities are derecognized when the contractual obligations are discharged or cancelled or have expired
or when the financial liability's cash flows have been substantially modified.

3.11 Non-financial assets

The Company assesses at each balance sheet date whether there is any indication that assets may be impaired. If
such indication exists, the carrying amounts of such assets are reviewed to assess whether they are recorded in
excess of their recoverable amount. Where carrying values exceed the respective recoverable amount, assets are
written down to their recoverable amounts and the resulting impairment loss is recognized in the profit and loss
account. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use.

An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable
amount of the asset. An impairment loss is reversed only to the extent that the asset's carrying amount does not
exceed the carrying amount that would have been determined, if no impairment loss had been recognized.

3.12 Long term deposits

These are stated at cost which represents the fair value of consideration given.

3.13 Provisions
Provisions are recognized when the institute has a present legal or constructive obligation as a result of
past events, it is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation and a reliable estimate of the amount can be made of the amount of the obligation.
However, provisions are reviewed at each balance sheet date and adjusted to reflect current best
estimate.

3.14 Cash and cash equivalents

Cash and cash equivalents comprise cash in hand, balances with the banks and certificate of investment
with maturity of three months or less.

3.15 Offsetting
A financial asset and a financial liability are off set and the net amount is reported in the balance sheet
where there is a legally enforceable right to set off the recognized amounts and the Institute intends to
either settle on a net basis or to realize the asset and settle the liability simultaneously.
 2021 2020
Note Rupees Rupees

4 PROPERTY AND EQUIPMENT 4.1 5,962,805 6,305,734

4.1 Cost Depreciation Net book

value as at
Particulars As at July 01, As at June As at July 01, On As at June Rate
Additions Transfers Disposals For the year June 30,
2020 30, 2021 2020 disposal 30, 2021
2021

Owned

Building at PECHS 10,865,400 - - - 10,865,400 4,994,172 293,561 - 5,287,733 5,577,667 5%

Furniture and fixture 370,652 - - - 370,652 279,026 9,163 - 288,189 82,463 10%
Office equipment 195,181 - - - 195,181 39,956 15,523 - 55,479 139,702 10%
Library books 73,452 - - - 73,452 69,979 695 - 70,674 2,778 20%
Computers 343,805 - - - 343,805 288,286 11,104 - 299,390 44,415 20%
Fax machine 11,000 - - - 11,000 10,842 32 - 10,874 126 20%
Electrical equipment 164,916 - - - 164,916 100,957 6,396 - 107,353 57,563 10%
CCTV camera 92,131 - - - 92,131 29,051 6,308 - 35,359 56,772 10%
Franking machine 28,000 - - - 28,000 26,534 147 - 26,681 1,319 10%
2021 12,144,537 - - - 12,144,537 5,838,803 342,929 - 6,181,732 5,962,805
2020 12,126,233 18,304 - - 12,144,537 5,473,297 365,506 - 5,838,803 6,305,734

2021 2020
Note Rupees Rupees

5 INVESTMENT PROPERTY 5.1 2,296,242 2,590,384

5.1 Cost Depreciation Net book value

Particulars As at July As at June As at July For the On As at June as at June 30, Rate
Additions Transfers Disposals Transfers
01, 2020 30, 2021 01, 2020 year disposal 30, 2021 2021

Investment property

Land-leasehold 33,000 - - - 33,000 - - - - - 33,000 0%

Building on lease
5,882,830 - - - 5,882,830 3,325,446 294,142 - - 3,619,588 2,263,242 5%
hold land
2021 5,915,830 - - - 5,915,830 3,325,446 294,142 - - 3,619,588 2,296,242
2020 5,915,830 - - - 5,915,830 3,190,847 134,599 - - 3,325,446 2,590,384

5.2 Leasehold land represents an amenity plot situated at Block 1, KDA Scheme 5, Clifton, Karachi and the building
thereon represents ground plus one floor. Both land and building, having a total carrying value of Rs. 2,296,242 (2020:
Rs. 2,590,384), are in the name of M/s Memon Welfare Society.

5.3 The valuation of property was carried out by a professional firm of surveyors and valuers. As per their report dated
July 09, 2018, the fair value and forced sales value of the property were Rs. 355,522,400/- and Rs.284,417,920/-
respectively.
5.4 Particulars of Immovable investment property:
Total Area / Covered Area
Particulars Location

Leasehold land
Plot No.ST-8/D, main Shahrah-e-Bedil 1,098 Square Yard
Block-I, Clifton, Karachi

Building on leasehold land Plot No.ST-8/D, main Shahrah-e-Bedil 12,653 Square Feet
Block-I, Clifton, Karachi

5.5 There has been no material change in the valuation of properties as internally assessed by management of the
Institute.
2021 2020
Note Rupees Rupees

6 LONG TERM DEPOSIT

Long term security deposit 10,000 10,000

6.1 This represents the security deposits of PTCL telephone lines in use of the Institute. The amount was deposited

7 ADVANCES, PREPAYMENTS AND OTHER RECEIVABLES

Advance income tax 1,926,996 1,285,727

Security deposit 6,000 6,000
Prepayments 32,645 27,520
Rent receivable 10,876,832 2,621,930
Mark-up receivable 180,002 349,449
Other receivables 63,231 63,231
13,085,706 4,353,857

8 SHORT TERM INVESTMENT

Certificates of investment 8.1 60,000,000 55,000,000

60,000,000 55,000,000

8.1 This represents amount invested in certificates of investment for a period of three months. The average return on this
investment is 7.00% p.a. (2020 : 8% p.a).

9 CASH AND BANK BALANCES

Cash in hand 22,723 21,715
Cash at banks -in current account 594,530 3,820,037
Cash at banks -in saving account 8,779,520 290,335
9,396,773 4,132,087

9.1 The rate of return on saving account ranges from 4.0% to 5.0%% p.a. (2020 : from 4.0% to 5.0% p.a)
 2021 2020
Note Rupees Rupees

10 LONG TERM DEPOSIT 10.1 5,400,000 5,400,000

10.1 This represents security deposit received from a tenant on account of premises rented out for five years.

11 ADVANCES, DEPOSITS AND OTHER PAYABLES

Deposit 11.1 900,000 900,000

Examination fee 29,050 29,050
Subscriptions and fees 125,400 126,900
1,054,450 1,055,950

11.1 This represents security deposit received from an Ex-tenant on account of premises rented out.

12 GENERAL FUND

Balance brought forward 65,237,808 47,740,045

Surplus for the year 18,215,214 17,497,763
83,453,022 65,237,808
13 OTHER FUNDS

Rao N.S. Khan Medal Fund 84,300 84,300

Benevolent fund 25,000 25,000
109,300 109,300

14 CONTINGENCIES AND COMMITMENTS

There were no contingencies and commitments as at June 30, 2021 (2020: Nil)

15 SUBSCRIPTIONS AND FEES

Members' registration fees 17,000 13,500
Members' annual subscriptions 515,971 317,150
Students' registration fees 56,000 32,000
Students' annual subscriptions 48,100 38,700
Examination fees 213,100 121,800
Exemption fees 255,200 166,100
1,105,371 689,250

16 RETURN ON INVESTMENT

Profit on certificates of investment 3,622,909 4,951,194

Profit on savings accounts 66,108 20,982
3,689,017 4,972,176

17 OTHER INCOME

Nomination fees 15,500 -

Miscellaneous 144,055 58,750
159,555 58,750
 2021 2020
Note Rupees Rupees

18 SALARIES, ALLOWNCES AND OTHER BENEFITS

Salaries and allowances 1,895,017 1,865,855

Retirement benefits 89,250 127,776
1,984,267 1,993,631

19 OTHER EXPENDITURES

Bank charges 16,971 20,494

Entertainment 39,682 47,782
Miscellaneous expenses 74,285 58,380
130,938 126,656

20 CASH AND CASH EQUIVALENTS

Cash and bank balances 9 9,396,773 4,132,087

Short term investment 8 60,000,000 55,000,000
69,396,773 59,132,087

21 ACCOUNTING ESTIMATES AND JUDGMENTS

21.1 Property and equipment

The Institute reviews the rate of depreciation, useful life, residual value and value of assets for possible impairment on
an annual basis. Any change in the estimates in future years might affect the carrying amounts of the respective items
of operating fixed assets with a corresponding affect on the depreciation charge and impairment.

21.2 Financial instruments and risk management

The Council of the Institute has overall responsibility for the establishment and oversight of the Institute's risk
management framework. The Institute has exposure to the following risks from its use of financial instruments:

- Credit risk
- Liquidity risk
- Market risk
21.3 Credit risk

Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other
party to incur a financial loss, without taking into account the fair value of any collateral. Concentration of credit risk
arises when a number of counter parties are engaged in similar business activities or have similar economic features
that would cause their ability to meet contractual obligations to be similarly affected by changes in economics,
political or other conditions. Concentrations of credit risk indicate the relative sensitivity of the Company's
performance to developments affecting a particular industry.

Credit risk of the Institute arises principally from the short term advances & receivables and bank balances. The
carrying amount of financial assets represents the maximum credit exposure. Cash is held only with reputable bank
with high quality credit worthiness.

The maximum exposure to credit risk at the reporting date is as follows:

2021 2020
Rupees Rupees

Long term deposits 10,000 10,000

Advances, prepayments and other receivables 11,126,065 3,040,610
Short term investments 60,000,000 55,000,000
Bank balances 9,374,050 4,110,372

80,510,115 62,160,982

None of the above balances are past due or impaired.

The credit quality of the Institute bank balance maintained with a bank assessed by an external credit rating entity is
as follows:

Rating agency Rating

Short term Long term

MCB Islamic bank Limited PACRA A1 A

Bank Al Habib Limited PACRA A1+ AAA

Allied Bank Limited PACRA A1+ AAA

Faysal Bank Limited PACRA A1+ AA

Meezan Bank Limited VIS A-1+ AAA

Pak Oman Investment

VIS A-1+ AA+
Company (Private) Limited
21.4 Liquidity risk

Liquidity risk is the risk that the Institute will encounter difficulty in meeting its financial obligations as they fall due.
Liquidity risk arises because of the possibility that the Institute could be required to pay its liabilities earlier than
expected or difficulty in raising funds to meet commitments associated with financial liabilities as they fall due. The
Institute is of the view that it is not exposed to any significant liquidity risk. The following are the contractual
maturities of financial liabilities:

2021
Carrying Contractual Six months Six to twelve
One to five years
amount cash flows or less months
-----------------------------------Rs.-----------------------------------
Financial liabilities

Accrued expenses 219,472 219,472 219,472 - -

Long term deposits 5,400,000 5,400,000 - - 5,400,000

Advances, deposits and other

1,054,450 1,054,450 1,054,450 - -
payables
6,673,922 6,673,922 1,273,922 - 5,400,000

2020
Carrying Contractual Six months Six to twelve
One to five years
amount cash flows or less months
-----------------------------------Rs.-----------------------------------
Financial liabilities

Accrued expenses 132,472 132,472 132,472 - -

Long term deposits 5,400,000 5,400,000 - - 5,400,000

Advances, depaosits and other

1,055,950 1,055,950 1,055,950 - -
payables

6,588,422 6,588,422 1,188,422 - 5,400,000

21.5 Market risk

Market risk is the risk that the value of the financial instruments may fluctuate as a result of changes in interest
rates or the market price may change due to a change in credit rating of the issuer or the instrument, change in
market sentiments, speculative activities, supply and demand of securities and liquidity in the market. Having no
interest based financial asset / liability, the Institute is not exposed to any interest rate risk.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
change in market interest rate. In view of balances in current accounts no interest rate exposure arises.

21.5.1 Cash flow sensitivity analysis for variable rate instruments

There would have been no effect in the statement of comprehensive income for the year ended June 30, 2021 and
the Institute's funds as of June 30, 2021 due to change in interest rates applicable on its financial assets. Same
stands true for corresponding figures as well.

Funds held in banks can be withdrawn on demand.

21.6 Fair value of financial assets and liabilities

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable willing
parties in an arm's length transaction. Consequently differences can arise between carrying values and the fair value
estimates.

The carrying amounts of all financial assets and liabilities reflected in the financial statements approximate their fair
values.

22 NUMBER OF EMPLOYEES

The total number of employees of the Institute as at June 30, 2021 were 03 (2020: 4).

23 DATE OF AUTHORIZATION

These financial statements were authorized for issue in the Council Members meeting held on October 05th, 2021.

President Treasurer Vice President

ICSP Registered Office

683-C, Allama Iqbal Road,

Off: Tariq Road, Block 2,
PECHS, Karachi.

+9221- 34394646-47

[email protected]