Shine Star

We submit replies as follows:-

* Kh. Babar Maqsood had certain business ties with Mr. Javed Siddique; however, the same were deteriorated in NIB Bank Ltd which had to default.

* The same has been settled with NIB Bank Limited and final approval is in process.

* As for as relationship is concern with MCB Bank Ltd, the same is running with MCB Bank since last One decade whereby he has never defaulted or showed any act of markup waivers etc.

* To resolve the matter to mitigate the risk and to support the business , we recommend the following:-

S. # Facility Existing Exposure Proposed Exposure

1 ERF - I (Pre Shipment) PKR 18.00 M PKR 03.00 M

1a ERF - I (Post Shipment) <PKR 18.00 M> PKR 07.00 M

1b ERF - II <PKR 10.00 M> --

2 FBP / FAFB under Clean LC PKR 10.00 M PKR 10.00 M

2a FAFB - Contract / FBP Discrepant <PKR 10.00 M> <PKR 10.00 M>

TOTAL PKR 28.00 M PKR 20.00 M

* As is evidenced from the above, out of total proposed exposure of PKR 10.00 Million, ERF - I (Pre shipment) will be restricted to PKR 03.00 Million while ERF - I (Post shipment) will be restricted to PKR 07.00 Million. By the adjustment, Bank's major strategy would primarily is to support the post shipment cycle while reducing risk from Pre Shipment Exposure.

* Moreover we also withdraw FAFB - Contract limit to minimize Bank's risk

* To mitigate risk issue on part of Mr. Javed with Shine Star Enterprises, we recommend release of property owned by Mr. Javed Siddique valuing PKR 14.476 Million.

* The remaining collateral valuing PKR 32.553 Million (FSV 27.670 M) would sufficiently be covering Bank's exposure of PKR 20.00 M as fallow