The Punjab Educational Endowment Fund 03

The Punjab Educational Endowment Fund 03

Quaid-e-Azam s Message Develop a sound sense of Discipline, Character, Initiative and a solid Academic Background. You must devote yourself whole-heartedly to your studies, for that is your first obligation to yourselves, your parents and to the State. You must learn to obey for only then you can learn to command. (Islamic College, Peshawar - 12 th April, 1948) The Punjab Educational Endowment Fund 04

Allama Muhammad Iqbal s Message The search for rational foundations in Islam may be regarded to have begun with the Prophet himself. His constant prayer was: God! grant me knowledge of the ultimate nature of things!. Excerpt from Reconstruction of Religious Thought In Islam, Lecture 1: Knowledge and Religious Experience The Punjab Educational Endowment Fund 05

Muhammad Shahbaz Sharif Chief Minister, Punjab / Chairman (PEEF) Looking at the horizon of a nation s development, nothing seems more important than the provision of quality education. It is the light of knowledge that can make a country economically and industrially a force to reckon with, thus leading the way for future prosperity and integrated social growth. When the idea of PEEF was floated in late 2008, the Punjab Government immediately decided to adopt and sponsor it because it was focused on empowering the youth of the province by investing in education and providing opportunities to the less privileged but talented students to realize their potential and carve a better destiny for themselves and for this nation. The PEEF s guiding light was not to be a mere scholarship fund but to change the landscape and the horizon for the deprived and the under-privileged students by affording them an opportunity to move up the ladder in society by educating themselves. Today, I want to express my pleasure at the rapid strides taken by the Punjab Educational Endowment Fund (PEEF) since its inception. More than 100,000 scholarships and counting is a remarkable achievement that any similar endowment fund anywhere in the world can be proud of. All this has been accomplished by installing best management practices and systems which makes it impossible to disregard merit. I am quite hopeful that the PEEF s impact, which has already started to reflect massively with its first graduates passing out from top educational institutions in this country and some from quality universities abroad as well, shall be quite pronounced in the years to come. I sincerely hope that PEEF s management would strive hard and work with continuous zeal and commitment to serve the nation and make PEEF a resounding success. The Punjab Educational Endowment Fund 06

Dr. Muhammad Amjad Saqib Vice Chairman From zero to 100,000 scholarships in six years, the figures speak for themselves. Each of these 100,000 scholarships has a tremendous impact on the lives of recipients and their entire families. Hundreds have succeeded in pulling themselves and their future generations out of poverty, hundreds have served as role models for their families and communities, and hundreds have helped encourage students in their schools to follow their example. PEEF s success is a result of the vision of our Chairman, Mr. Shahbaz Sharif, CM, Punjab; the dedication of our management and the trust of our beneficiaries. We are also fortunate to have friends like the UK Government s Department for International Development (DFID), which has made generous contributions to PEEF s operations and its continuing support through its Punjab Education Sector Programme II. I am confident that the value added by PEEF will make an enormous contribution to the development of our beloved country. DR. Kamran SHAMS Chief Executive Officer, PEEF 2015 marks a landmark achievement for PEEF. This year, we awarded our 100,000th scholarship and transformed the lives of over 100,000 talented, persistent young boys and girls. These recipients were the most deserving students from less privileged section of society; they preserved to study hard amidst a variety of adversities, such as, income limitations, geographic locations, and physical disabilities. They traveled long distances to school, many of them worked after school to contribute to their family s income, a large number helped take care of elderly parents and younger siblings, and some gave up, only starting over again. In the coming months, PEEF aspires to expand its endowment so that it can continue to improve its targeting and thus its scholarships. With help from generous partners, we hope that, in the coming years, we can meet our aspiration and transform the lives of millions of needy students across the country. The Punjab Educational Endowment Fund 07

Vision statement Creation of a pool of talented Pakistani youth from less privileged background; contributing towards economic and social development to realize the dream of a moderate, progressive and prosperous Pakistan. Mission Statement Building a critical mass of human capital, participating in nation building; through provision of equitable opportunities to less privileged but academically brilliant boys and girls in Punjab. The Punjab Educational Endowment Fund 08

Objectives of PEEF PEEF has been established with the following objectives: 1 Scholarship for talented and less privileged students to bring them at par with the more fortunate ones 3 2 Creation of a critical mass of talented youth for the development of society. Identification and support to extremely marginalized students through special quotas 4 Supporting the less privileged but outstanding students of other provinces including AJK, ICT, FATA & Gilgit-Baltistan. The Punjab Educational Endowment Fund 09

Governance Structure In conformity with Articles of Association of PEEF, the Governance General Body Board of Directors Executive Committee Functional Committees A General BoDY comprising of 21 members nominated by the Government of Punjab, is the supreme authority to act as a guiding force behind the Board of Directors. This body includes educationists, elected representatives, retired civil servants, business individuals and representatives from Government and civil society. board of Directors General body Executive Committee Functional Committees The Punjab Educational Endowment Fund 10

General body At present, General BoDY consists of the following twenty one members Following is the list of members of the General BoDY of PEEF: NaME Profession / Designation Mr. Muhammad Shahbaz Sharif Chief Minister, Punjab (Chairman) Dr. Muhammad Amjad Saqib vice Chairman Mr. Ahsan Iqbal member National Assembly Mr. Muhammad Baligh-ur-Rehman Member National Assembly Ms. Anusha Rehman Khan member National Assembly Ms. Bushra Anjum Butt member Provincial Assembly, Punjab Qazi Adnan Farid member Provincial Assembly, Punjab Engineer Qamar ul Islam Raja Chairman, Punjab Education Foundation Justice (R) Aamer Raza Khan former Judge of the Lahore High Court Prof. Dr. Fazal Ahmad Khalid vice Chancellor, UET, Lahore Mr. Mehr Jiwan Khan former Federal Secretary Dr. Ali Cheema university Professor Dr. Shahid Siddiqui vice Chancellor, AIOU Dr. Umar Saif Chairman PITB / VC (ITU) Ms. Seema Aziz business Lady/Philanthropist & Education Manager Ms. Nusrat Jamil social Activist Dr. Muhammad Ajmal Khan COO, Punjab Healthcare Commission Ex-Officio Additional Chief Secretary, Govt. of Punjab Ex-Officio Secretary Finance, Govt. of Punjab Ex-Officio Secretary Higher Education, Govt. of Punjab Ex-Officio Secretary Schools Education, Govt. of Punjab The Punjab Educational Endowment Fund 11

Board of Directors The qualifications of members of the Board of Directors (bod), their roles, responsibilities, functions, term and the frequency of meetings of the Board, procedures to circulate minutes of meetings, communication and requirements to attend Board meetings are in accordance with Memorandum and Articles of Association of The Punjab Educational Endowment Fund. At present, Board consists of the following eleven members headed by the Chairman, Mr. Muhammad Shahbaz Sharif, Chief Minister, Punjab: Mr. Muhammad Shahbaz Sharif, Chief Minister, Punjab (Chairman of Board) Dr. Muhammad Amjad Saqib (Vice Chairman) Mr. Muhammad Baligh-ur-Rehman, MNA (Director) Ms. Anusha Rehman Khan, MNA (Director) Ms. Bushra Anjum Butt MPA (Director) Justice (R) Aamer Raza Khan (Director) Dr. Umar Saif, Chairman PITB / VC (ITU) (Director) Ms. Nusrat Jamil, Social Activist (Director) Dr. Muhammad Ajmal Khan, COO, Punjab Healthcare Commission (Director) Secretary Finance, Govt. of Punjab (Ex-Officio) (Director) Secretary Higher Education, Govt. of Punjab (Ex-Officio) (Director) The Punjab Educational Endowment Fund 12

Functional Committees The Board of Directors (BOD) has constituted various functional committees in accordance with the Articles of Association to guide and advise the organization on various issues and policy matters The rationale behind forming these committees is to guide, assist, add value and strengthen the organization in its working and accomplishing PEEF s Vision and Mission statements. These committees provide pedestal for good governance, transparency and check & balance which are necessary for an effective system of internal control and risk management. They also capitalize on the specific expertise and experience of the individual members which contributes to the refinement of the operational policies and expedites the decision making process on different issues. Objectives & Working: i. Executive Committee: The main objective of this committee is to provide guidance and support to the company on strategic and tactical issues as they arise from time to time during Board meetings. ii. Procurement Committee: Procurement Committee approves various management purchase requests as per the authority given in the Delegation of Financial & Administrative Powers. Along with approval, the Committee monitors that the management has explored all necessary ways and means of obtaining cost beneficial services or products. iii. Recruitment & HR Committee: Recruitment & HR Committee is constituted to assist the Board of Directors in fulfilling its obligations relating to recruitment including performance, compensation, succession and safety matters along with ensuring that it provides strategic direction to the employees of the organization. The Committee also has to ensure that the human resource The Punjab Educational Endowment Fund 13

Frequency of meetings Sr. No. Particulars No. of meetings held 1 General Body 8 2 Board of Directors 16 3 Executive Committee 24 4 Scholarship Management Committee 9 5 Rules, Procedures & Monitoring Committee (formerly Rules of Business Committee) 7 6 Audit Committee 17 7 Procurement Committee 6 8 Fund Management Committee 11 9 Recruitment & HR Committee 14 10 Budget & Finance Committee 7 total 119 of the PEEF contributes effectively towards the achievement of the vision of the organization. iv. Budget & Finance Committee: The Committee is expected to make budget and finance related decisions more broad based, transparent with built in controls and aims to seek opinion from experts, staff and professional agents to review and analyze performance on a quarterly basis and make recommendations to enhance efficiency. v. Fund Management Committee: Fund Management Committee oversees successful and prudent operation of the Punjab Educational Endowment Fund s current income and potential income sources. Its main responsibilities are divided into two domains i.e. Fund Generation and Investment. vi. Scholarship Management Committee: Scholarship Management Committee oversees the management of the Scholarship Programs run under the umbrella of PEEF. These scholarships are distributed among students of all districts of Punjab along with a special quota for other provinces & Punjab Board of Technical Education (PBTE), which necessitates rigorous management and logistics arrangements. This also involves timely coordination between PEEF and its stakeholders including Punjab Examination Commission (PEC) and all Boards of Intermediate and Secondary Education (BISE) in Punjab, Focal Committees in each district, participating institutions, students, etc. vii. Rules, Procedures and Monitoring Committee: Rules, Procedures and Monitoring Committee has been constituted for the purpose The Punjab Educational Endowment Fund 14 of developing, implementing and review of administrative, operational, financial and MIS policies, procedures and guidelines and further to monitor and ensure compliance with all such policies in accordance with the Vision and Mission statements of PEEF. viii. Audit Committee: The primary function of the Audit Committee is to assist the Board of Directors in fulfilling its fiduciary responsibilities by overseeing the organization s financial reporting, its operational functions related in particular to scholarship management and its disclosure activities, along with reviewing the overall policy framework from time to time.

DIRECTOR S REPORT JUNE 30, 2015 The Directors are pleased to present their statutory report together with audited financial statements of the Punjab Educational Endowment Fund (PEEF) for the year ended June 30, 2015. During the year under review, PEEF has disbursed 19,671 scholarships worth Rs.1.296 billion making the aggregate disbursement figure of 80,389 scholarships, worth Rs.4.350 billion. With the budgetary allocation of additional Rs.2.00 billion for the FY 2015-16, it is anticipated that by the end of December 2015, the cumulative number of awarded scholarships will cross the landmark of 100,000 scholarships worth Rs.5.611 billion. THE DirECTors are pleased to state that: a) The Board has complied with relevant principles of Corporate Governance, and has identified the rules that have not been complied with, the period in which such non-compliance continued, and reasons for such non-compliance; b) The financial statements, prepared by the management of the Company, present its state of affairs fairly, the result of its operations, cash flows and changes in funds and reserves; c) Proper books of account of the company have been maintained; d) Appropriate accounting policies have been consistently applied in preparation of financial statements and accounting estimates are based on reasonable and prudent judgment; e) The system of internal control is sound in design and has been effectively implemented and monitored f) The appointment of the Chairman and other members of the Board and the terms of their appointment are in the best interests of the Company as well as in line with the best practices. None of the Director is being paid any remuneration; g) PEEF has received funds amounting to Rs.11 billion from the Govt. of Punjab till 30th June, 2015; h) Key operating and financial data of last six (6) years is annexed; i) The value of investments (at cost) of Gratuity Fund as at June 30, 2015 is Rs.19.00 million. j) During the year under review four (4) meetings of the Board of Directors were held and the attendance of each Director is as follows: The Punjab Educational Endowment Fund 15

Directors No. of Meetings Attended Mr. Muhammad Shahbaz Sharif, Chief Minister, Punjab (Chairman) - Dr. Muhammad Amjad Saqib, Vice Chairman 4 Mr. Muhammad Baligh-ur-Rehman, MNA - Ms. Anusha Rehman Khan, MNA - Ms. Bushra Anjum Butt, MPA 1 Justice (R) Aamer Raza Khan, Former Judge 4 Ms. Nusrat Jamil, Social Activist 1 Dr. Muhammad Ajmal Khan, COO, PHC 2 Secretary Finance, Govt. of Punjab (Ex-officio) 3 Secretary Higher Education, Govt. of Punjab (Ex-officio) 4 Chairman, PITB (Ex-officio) 4 (The Board granted leave of absence to the directors who could not attend the meetings due to pre-occupation.) Auditors The retiring auditors, M/s. Ernst & Young Ford Rhodes Sidat Hyder, Chartered Accountants recommendation, being eligible for re-appointment, have consented to act as Auditors of PEEF for the FY 2015-16. The Audit Committee and the Board of Directors have endorsed their re-appointment for Member s consideration at the forthcoming Annual General Meeting. Acknowledgement We are grateful to Allah, The mostly Merciful, with whose benevolence we have collectively been able to progress and achieve the objectives of the Company. We would also like to thank all our stakeholders who have helped us come this far. Place: Lahore Date:November 16, 2015 For and on behalf of the Board Dr. Kamran Shams Chief Executive Officer The Punjab Educational Endowment Fund 16

Key Operations & Financial Data Punjab Educational Endowment Fund (PEEF) Key Operating and Financial Data of last six (6) years Particulars 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Endowment Fund Income Proceeds from Endowment Fund Amount of Scholarships Disbursed Number of Scholarships Awarded (Rs. in 000 ) 4,041,681 4,114,692 6,191,762 7,284,772 9,377,772 11,491,772 456,426 736,493 816,435 923,921 927,937 1,140,998 250,887 361,605 706,681 748,370 790,313 762,585 5,484 6,982 13,345 9,952 18,621 19,671 The Punjab Educational Endowment Fund 17

Statement of Compliance with the Public Sector companies (corporate Governance) Rules, 2013 Name of company: The Punjab Educational Endowment Fund (PEEF) Name of the line ministry: higher Education Department, Govt. of Punjab For the year ended: 30th June, 2015 I. This statement is being presented to comply with the Public Sector Companies (Corporate Governance) Rules, 2013 (hereinafter called the Rules ) issued for the purpose of establishing a framework of good governance, whereby a public sector company is managed in compliance with the best practices of public sector governance. II. The Company has complied with the provisions of the Rules in the following manner: Sr.No. Provision of the Rules Rule Y N 1. The Independent Directors meet the criteria of independence, as defined under the Rules 2. The Board has the requisite percentage of Independent Directors. At present the Board includes: Category Names Independent Directors Executive Directors Non-Executive Directors 1) Dr. Muhammad Amjad Saqib 2) Justice (R) Aamer Raza Khan 3) Ms. Nusrat Jamil NIL 1) Mr. Muhammad Shahbaz Sharif, Chief Minister, Punjab 2) Mr. Muhammad Baligh-ur-Rehman, MNA 3) Ms. Anusha Rehman Khan, MNA 4) Ms. Bushra Anjum Butt, MPA 5) Dr. Muhammad Ajmal Khan 6) Secretary Finance, Govt. of Punjab 7) Secretary Higher Education, Govt. of Punjab 8) Chairman PITB, Govt. of Punjab 29-06-2010 Date of appointment 29-06-2010 -do- -do- -do- -do- 28-01-2014 29-06-2010 02-01-2015 26-04-2015 28-01-2014 2(d) 3(2) 3. A casual vacancy occurring on the Board was filled up by the Directors within ninety days 3(4) NA (No casual vacancy occurred) 4. 5. The Directors have confirmed that none of them is serving as a director on more than five public sector companies and listed companies simultaneously, except their subsidiaries. The appointing authorities have applied the fit and proper criteria given in the Annexure in making nominations of the persons for election as Board Members under the provisions of the Ordinance 3(5) 3(7) The Punjab Educational Endowment Fund 18

Sr.No. Provision of the Rules Rule Y N 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. The Chairman of the Board is working separately from the Chief Executive of the Company The Chairman has been elected from amongst the Independent Directors The Board has evaluated the candidates for the position of the Chief Executive on the basis of the fit and proper criteria as well as the guidelines specified by the Commission (a) The Company has prepared a Code of Conduct and has ensured that appropriate steps have been taken to disseminate it throughout the company along with its supporting policies and procedures, including posting the same on the company s website. (www.peef.org.pk) (b) The Board has set in place adequate systems and controls for the identification and redressal of grievances arising from unethical practices The Board has established a system of sound internal control, to ensure compliance with the fundamental principles of probity and propriety; objectivity, integrity and honesty; and relationship with the stakeholders, in the manner prescribed in the Rules The Board has developed and enforced an appropriate conflict of interest policy to lay down circumstances or considerations when a person may be deemed to have actual or potential conflict of interests, and the procedure for disclosing such interest The Board has developed and implemented a policy on anti- corruption to minimize actual or perceived corruption in the company (a) The Board has ensured equality of opportunity by establishing open and fair procedures for making appointments and for determining terms and conditions of service. (b) A Committee has been formed to investigating deviations from the company s code of conduct. The Board has ensured compliance with the law as well as the company s internal rules and procedures relating to public procurement, tender regulations, and purchasing and technical standards, when dealing with suppliers of goods and services, in accordance with the PPRA Rules The Board has developed a vision or mission statement, corporate strategy and significant policies of the company. A complete record of particulars of significant policies along with the dates on which they were approved or amended has been maintained The Board has quantified the outlay of any action in respect of any service delivered or goods sold by the Company as a public service obligation, and has submitted its request for appropriate compensation to the Government for consideration a) The Board has met at least four times during the year. b) Written notices of the Board meetings, along with agenda and working papers, were circulated at least seven days before the meetings. c) The minutes of the meetings were appropriately recorded and circulated 4(1) 4(4) 5(2) 5(4) 5(5) 5(5)(b) (ii) 5(5)(b) (vi) 5(5)(c) (ii) 5(5)(c) (iii) 5(6) 5(8) 6(1) 6(2) 6(3) The Punjab Educational Endowment Fund 19

Sr.No. Provision of the Rules Rule Y N 18. 19. 20. 21. 22. The Board has carried out performance evaluation of its members, including the chairman and the chief executive, on the basis of a process, based on specified criteria, developed by it. The board has also monitored and assessed the performance of senior management on annual basis. The Board has reviewed and approved the related party transactions placed before it after recommendations of the audit committee. A party wise record of transactions entered into with the related parties during the year has been maintained The Board has approved the profit and loss account for, and balance sheet as at the end of, the first, second and third quarter of the year as well as the financial year end, and has placed the annual financial statements on the company s website. Monthly accounts were also prepared and circulated amongst the board members All the Board Members underwent an orientation course arranged by the Company to apprise them of the material developments and information as specified in the Rules. (a) The Board has formed the requisite committees, as specified in the Rules. (b) The Committees were provided with written term of reference defining their duties, authority and composition. (c) The minutes of the meetings of the Committees were circulated to all the Board Members. (d) The Committees were chaired by the following non-executive Directors: Committee Number of members Name of Chair Audit Committee 5 Ms. Bushra Anjum Butt Risk Management Committee Human Resources Committee Procurement Committee Nomination Committee 6 3 3 Senator Mohammad Ishaq Dar Dr. Muhammad Amjad Saqib Justice (R) Aamer Raza Khan Not Applicable 8 9 10 11 12 Fund Management Committee will be renamed as Risk & Fund Management Committee 23. 24. The Board has approved appointment of Chief Financial Officer, Company Secretary and Chief Internal Auditor, with their remuneration and terms and conditions of employment, and as per their prescribed qualifications The Company has adopted International Financial Reporting Standards notified by the Commission under clause (i) of sub- section (3) of section 234 of the Ordinance 13/14 16 The Punjab Educational Endowment Fund 20

Sr.No. Provision of the Rules Rule Y N 25. 26. 27. 28. 29. The Directors report for this year has been prepared in compliance with the requirements of the Ordinance and the Rules and fully describes the salient matters required to be disclosed The Directors, CEO and executives do not hold any interest in the shares of the company other than that disclosed in the pattern of shareholding A formal and transparent procedure for fixing the remuneration packages of individual Directors has been set in place. The annual report of the company contains criteria and details of remuneration of each Director The financial statements of the Company were duly endorsed by the Chief Executive and Chief Financial Officer, before approval of the Board The Board has formed an audit committee, with defined and written terms of reference, Name of and having the following members: member Ms. Bushra Anjum Butt Mr. Ahsan Chughtai, Mr. Muzaffar Hashmi Mr. Farooq Hameed Secretary, Finance Department Category Professional Background law Finance ACCA Chartered Accountant The Chief Executive and Chairman of the Board are not members of the Audit Committee. - 17 18 na (No Share Capital) 19 20 21 30. 31. 32. 33. 34. The Board has set up an effective internal audit function, which has an audit charter, duly approved by the Audit Committee, and which worked in accordance with the applicable standards The Company has appointed its external auditors in line with the requirements envisaged under the Rules. The external auditors of the Company have confirmed that the firm and all its partners are in compliance with International Federation of Accountants (IFAC) guidelines on Code of Ethics as applicable in Pakistan The external auditors have not been appointed to provide non- audit services and the auditors have confirmed that they have observed applicable guidelines issued by IFAC in this regard. The Company has complied with all the corporate and financial reporting requirements of the Rules. 22 23 23(4) 23(5) Dr. Kamran Shams Chief Executive Officer dr. Muhammad Amjad saqib Vice Chairman / Independent Director The Punjab Educational Endowment Fund 21

Explanation for Non-Compliance with the Public Sector Companies (corporate Governance) Rules, 2013 We confirm that all other material requirements envisaged in the Rules have been complied with except for the following, towards which reasonable progress is being made by the company to seek compliance by the end of next accounting year: Sr. No. Rule / Sub-Rule No. Reasons for non-compliance Future course of action 1 3(2) All Directors are nominee of the Govt. of Punjab. As per Rules, the Board shall have 40% of its total members as Independent Directors within the first two year of this notification i.e. up to August 2015.. The Govt. of Punjab will be requested to appoint Independent Directors to attain the requisite percentage. 2 3(5) 3 3(7) Ex-Officio Directors of the Company hold directorships in other Public Sector Companies by virtue of their office. All directors are nominee of the Govt. of Punjab and are appointed / nominated in accordance with Section(s) 163 and 183(b) of the Companies Ordinance, 1984 and Articles of Association of the Company. 4 4(4) Chief Minister Punjab is the ex-officio Chairman of the Company. Fresh confirmations will be obtained from a Director as and when a new appointment is made. Fit and proper criteria as given in the Annexure has been communicated to the nominating authority for future nominations. Will be discussed with Chief Minister Punjab in the next BOD meeting. 5 8 6 12 Board has carried out performance evaluation of the CEO and senior Management on annual basis. Board has formed the requisite Committees except the Risk Management Committee. However, a sub-committee named as Fund Management Committee is already looking after the risk functions of the Company. Performance evaluation criteria for the Members of the Board of Directors, is being developed. Keeping in view the ToRs of the Fund Management Committee, it will be renamed as Risk Management Committee. Dr. Kamran Shams Chief Executive Officer The Punjab Educational Endowment Fund 22 dr. Muhammad Amjad saqib Vice Chairman / Independent Director

The Punjab Educational Endowment Fund 23

Proactive System for Awarding Scholarships PEEF has adopted a proactive approach by providing scholarships at the door steps of the meritorious and needy students. From acquiring data from Punjab Examination Commission (pec), all Boards of Intermediate & Secondary Education (BIses) of Punjab and Federal Board of Intermediate & Secondary Education (FBIse), Islamabad to compiling, verifying and finally awarding scholarships. This involves carefully drafted and implemented methodology that has been adopted and practiced by PEEF since its establishment. peef reaches out to talented yet financially disadvantaged students at Tehsil level to ensure that financial challenges do not keep meritorious students away from continuing their education. peef promotes education by facilitating both genders equally and providing them opportunities to fulfill their dreams and aspirations so that they become partners in nation s development. For selecting and awarding scholarships to the deserving students; PEEF follows the below given process which ensures transparency, accuracy and convenience of the candidates: a. peef obtains data of students from PEC, all BIses, FBIse, PBte, and Provincial Education Departments based on the eligibility criteria outlined by the organization. b. On receipts of names of students, PEEF writes letters to all shortlisted students for PEEF scholarship. c. A Scholarship application form along with intimation letter is sent that has to be filled by the short listed students, verified by the institution where he/she is currently enrolled and sent back to PEEF (forms are also attested by the concerned Govt. official i.e. EDO (Edu), DO Colleges, The Punjab Educational Endowment Fund 24 etc.) d. All the received scholarship forms are scrutinized by PEEF for final selection and award of scholarship. e. PEEF enlists selected candidates and writes them confirmation letters with copies to respective educational institutions and District Focal Committees for information and further necessary action. f. The names of scholarship recipients are also uploaded on peef website. g. Scholarship stipend is disbursed through E-scholarship card on biannual basis through the educational institution where the scholar is currently enrolled. h. Second/next installment of scholarship stipend is released once the institution provides a satisfactory performance report about student academics, attendance, general conduct etc.

Categories of Scholarship The Punjab Educational Endowment Fund (PEEF) scholarships have been classified into three major categories: Out Reach Scholarship Special Quota Scholarship Scholarships for students of private affiliated institutions PROCESS FOR Secondary Level Intermediate & Graduation Level The data obtained from Punjab Examination Commission (PEC) is sorted out on the basis of PEEF policy The data obtained from Boards of Intermediate and Secondary Education (BISE) Punjab and Federal Board of Intermediate & Secondary Education (FBISE), Islamabad is sorted out on the basis of PEEF policy The data is sorted institution, Tehsil, District, and Gender wise to shortlist the eligible meritorious students Intimation letters & scholarship application forms are sent to the shortlisted students (top merit holders in each Tehsil) through the institutions last attended Intimation letters & scholarship application forms are sent to the shortlisted students at their home address All the received scholarship application forms are recorded and scrutinized for further processing The meritorious and deserving students are selected on Tehsil & Gender wise merit/award lists are prepared for the award of scholarships. The selected students are also intimated about their PEEF scholarship through intimation letters. Scholarships are awarded on biannual basis vide E-scholarship card through the respective educational institutions where PEEF scholars are currently enrolled Lists of awardees are shared with District & Divisional Education Offices and also uploaded on PEEF website (www. peef.org.pk) Secondary Level The District Focal Committee, Office of the EDO (Edu) and DEO (SE) is requested to identify students falling in one of the Special Quota categories. Intimation letters & scholarship application forms are sent to the respective district/ focal offices for identification of the meritorious & eligible students All the received forms are scrutinized and verified Out Reach Scholarship SPECIAL QUOta SCHOLARSHIPS These scholarships are awarded in the below mentioned categories Orphan Children Children of government servants in BPS 1 4 Children belonging to minority religion Special Children PROCESS FOR Intermediate & Graduation Level Newspaper advertisement is released for identification of meritorious students who have passed Matric and Intermediate Annual Examination from whole of the Punjab The applications received are scrutinized and eligible students are shortlisted against scholarships allocated for each category. Intimation letters & scholarship application forms are sent to all shortlisted students. All the received forms are scrutinized and verified. Final District/category and gender wise merit/ award lists are prepared for the award of scholarships. Scholarships are awarded on biannual basis vide E-scholarship card through the respective educational institutions where PEEF scholars are currently enrolled The Punjab Educational Endowment Fund 25

SCHOLARSHIP FOR PRIVATE INSTITUTIONS PROCESS FOR Secondary Level Intermediate Level & Graduation Level The data obtained from Punjab Examination Commission The data obtained from Boards of Intermediate and Secondary Education (BISE) Punjab and Federal Board of (PEC) is sorted out on the basis of PEEF policy Intermediate & Secondary Education (FBISE), Islamabad is sorted out on the basis of PEEF policy The data is sorted institution, Tehsil, District, and Gender wise to shortlist the eligible meritorious students Intimation letters & scholarship application forms are sent to the shortlisted students (top merit holders in each Tehsil) through the institutions last attended Intimation letters & scholarship application forms are sent to the shortlisted students at their home address All the received scholarship application forms are recorded and scrutinized for further processing The meritorious and deserving students are selected on Tehsil & Gender wise merit/award lists are prepared for the award of scholarships. The selected students are also intimated about their PEEF scholarship through intimation letters. Scholarships are awarded on biannual basis vide E-scholarship card through the respective educational institutions where PEEF scholars are currently enrolled Lists of awardees are shared with District & Divisional Education Offices and also uploaded on PEEF website (www.peef.org.pk) SCHOLARSHIP STIPEND RATE FOR STUDENTS STUDYING IN: day SCHOLARS MONTHLY SCHOLARSHIP (RS.) BOARDERS MONTHLY SCHOLARSHIP (RS.) SECONDARY LEVEL 800 1,500 HIGHER SECONDARY LEVEL 1,500 3,000 GRADUATION LEVEL (B.A, B.SC.) 2,500 4,000 PROFESSIONAL DEGREES, (MBBS, ENGINEERING) 3,000 4,500 Note: PEEF scholars including scholars of PBTE/Other Provinces /Areas, enrolled under the category of BOARDERS in Nine (9) Divisional Headquarters of Punjab and Sialkot are entitled to 10% additional boarding allowance. The Punjab Educational Endowment Fund 26

The salient features of the scholarships policy 2015 are briefed as under: 20,000 scholarships (Approx.) Proactive approach for the identification of PEEF scholars Scholarships awarded on the basis of the annual examination conducted at following FOUR levels; Graduation -to study at Master level Intermediate -to study at Graduation level Matriculation -to study at Intermediate level Middle -to study at Matriculation level More scholarships to 16 Less Developed Districts (LDDs) as compared to 20 Developed Districts Determination of merit at tehsil level Equal number of scholarships to all tehsils in a district Equal number of scholarships for boys and girls Scholarship policy Policy 2015 20% Special quota scholarships allocated to: Orphan Children Children of government servants in BPS 1 4 Children belonging to minority religion Special Children 820 Scholarships allocated for other provinces, Azad Jammu Kashmir (AJK), Federally Administered Tribal Areas (FATA), Islamabad Capital Territory (ICT) & Gilgit-Baltistan (GB) 468 scholarship for Punjab Board of Technical Education (PBTE) 1300 scholarships for Centers of Excellence (CoEs) Eligibility criteria In order to be considered eligible for scholarship, the student must have: At least 60% marks in 2015 (annual) examinations Secured admission in a regular educational institution as a full time student in the current academic year (2015-16) Monthly family income of parents is equal to or less than Rs. 15,000/- The Punjab Educational Endowment Fund 27

Allocation of Scholarships for the Year 2015-16 The allocation of scholarships for the year 2015-16 is given below: Entity Punjab Scholarship Allocation-(PEEF) Scholarship Allocation-(DFID) Secondary Level 1,728 - Intermediate Level 2,591 8,550 Graduation Level 2,591 - Master s Level 1,752 - Punjab Board of Technical Education (PBTE) 468 - Other provinces / Territories 820 - Centre of Excellences 1,300 100 Sub Total 11,250 8,650 Grand Total 19,900 SCHOLARSHIP ALLOCATION FOR OTHER PROvinces 2015 Scholarships allocation of other provinces/areas for the year 2015-16 is as under: Other provinces / Territories Scholarship Allocation Balochistan 480 Khyber Pakhtunkhwa 80 Sindh 80 FATA 50 Gilgit Baltistan 50 Azad State of Jammu & Kashmir 50 Islamabad Capital Territory (ICT) 30 TOTAL 820 The Punjab Educational Endowment Fund 28

Master Level Scholarships PEEF Master level scholarships are awarded to pursue Master degree from public sector universities of the Punjab and other partner degree awarding institutions. ELIGIBILIty CritERIa: i. Students having Punjab domicile. ii. Must have secured at least 60% marks or minimum CGPA 2.5 in BA/B.Sc./B.coM/BBA/Bcs/ BS (Hons.) etc. examinations held in 2015 (annual) in Punjab. iii. Ineligibility FOLLOwing are ineligible for PEEF MastER LevEL ScholaRSHIPS Students who have already passed / possessed MA / M.Sc. / MS / M.PHIL etc. degree Marks improvers or students who have passed examination in supplementary session Students who have passed the aforementioned examination with grace marks (*) iv. Passed the aforementioned examination from: o Government Institution, (or) o Private Affiliated Institution, (OR) o As Private Candidate The Punjab Educational Endowment Fund 29

v. Secured admission as a full time student in the current academic / Degree year (2014-15) in one of the partner universities. Students enrolled in spring/fall session (where applicable) and morning/ afternoon / evening sessions are also eligible to apply for PEEF scholarships vi. Declared monthly income of parents from all resources is Rs. 30, 000/- or less Children of Govt. employees of Grade 1-4 are exempted from condition of income if salary is only source of income vii. Not receiving any other scholarship for Master s Level studies. BaSIS for scholarship allocation: Scholarship quota is allocated on the basis of data of enrollment provided by the Partner Universities. 70% of the scholarships are allocated for science subjects. 30% of the scholarships are allocated for arts subjects. SCHOLaRSHIP stipend: Following cost and stipends are paid to the selected scholars: a. Total tuition fee b. PEEF also pays scholarship stipend to the selected scholars at the following rates: i. Day Scholar Rs. 3,000/- per month ii. Boarder Rs. 5,000/- per month The Punjab Educational Endowment Fund 30

Master Level Scholarship Awarded SR.NO. NAME OF UNIVERSITY SCHOLARSHIP awarded 1 Pir Mehr Ali Shah Arid Agriculture University, Rawalpindi 178 2 Baha-Ud-Din Zikria University, Multan 138 3 University of Veterinary & Animal Sciences, Lahore 28 4 Govt. College University, Faisalabad 148 5 University of Agriculture, Faisalabad 130 6 University of Engineering & Technology, Lahore 62 7 Govt. College University, Lahore 26 8 University of The Punjab, Lahore 256 9 Fatima Jinnah Women University, Rawalpindi 15 10 The Islamia University of Bahawalpur 114 11 University of Sargodha 129 12 Lahore College for Women University, Lahore 13 13 Kinnaird College for Women, Lahore 3 14 University of Health Sciences, Lahore 7 15 University of Education, Lahore 149 16 University of Engineering & Technology, Taxila 11 17 University of Gujrat 78 18 Comsats Institute of Information Technology, Islamabad 22 19 National Textile University, Faisalabad 2 20 The Women University, Multan 3 21 Bahria University, Islamabad 8 22 National University Of Computer & Emerging Sciences (Fast-Nu), 5 Lahore 23 Forman Cristian College, Lahore 12 24 Govt. College Women University, Faisalabad 3 25 National University of Science & Technology, Islamabad 25 26 The Govt. Sadiq College Women University, Bahawalpur 6 27 ITU, LAHORE 7 Total 1,578 The Punjab Educational Endowment Fund 31

Centre of Excellences (COE s) SCHOLARSHIPS ALLOCATION FOR COEs 2015-16 Center of Excellence (COE) is an academic institution that has highest merit in the academic realm in terms of reputation, conduct and performance. The Punjab Educational Endowment Fund has allocated scholarship quotas to different COEs. The responsibility of selection of students for PEEF scholarship rests with the respective COE. Scholarship Allocation (PEEF) Scholarship Allocation (DFID) Air University, Islamabad 20 - Graduation Bahria University, Islamabad 20 - Graduation Level Cadet College, Hassan Abdal 30 - Secondary Intermediate COMSATS Islamabad 10 17 Graduation COMSATS Lahore 10 17 Graduation COMSATS Lahore- Dual Degree 6 - Graduation Daanish School Authority, Lahore 770 - Elementary Directorate of Staff Development (DSD), Lahore 50 - Graduation FAST University, Lahore 30 17 Graduation FC College University, Lahore 20 - Graduation Ghulam Ishaq Khan Institute, Swabi 10 17 Graduation Institute of Business Administration, Karachi Institute of Chartered Accountants of Pakistan (ICAP) Institute of Cost Management Accountants of Pakistan (ICMAP) Information Technology University (ITU Punjab) Lahore University of Management Sciences (LUMS) 8 - Graduation 15 - Graduation 15 - Graduation 76 - Graduation 30 05 Graduation Military College Sui- Balochistan 20 - Secondary Intermediate Military College, Jehlum 20 - Secondary Intermediate Military College, Murree 20 - Secondary Intermediate Namal College, Mianwali - 10 Graduation The Punjab Educational Endowment Fund 32

SCHOLARSHIPS ALLOCATION FOR COEs 2015-16 National University of Science & Technology (NUST), Islamabad Pak Turk International Public School & College, Lahore Pakistan Air Force Public School, Sargodha Pakistan Institute of Fashion Designing, Lahore 20 17 Graduation 30 - Secondary Intermediate 20 - Secondary Intermediate 10 - Graduation Sadiq Public School, Bahawalpur 20 - Secondary Intermediate University of Veterinary & Animal Sciences (UVAS) Lahore 20 - Graduation TOTAL 1,300 100 - Scholarship Update Sr. No YEAR NO. OF SCHOLARSHIPS awarded Active Scholarships Scholarship Disbursements (Rs. in Millions) 1 2008-09 5,326-22 2 2009-10 5,484-250 3 2010-11 6,982 153 362 4 2011-12 13,345 1,207 707 5 2012-13 9,952 2,036 750 6 2013-14 PEEF 10,329 4,332 DFID 9,300-172 791 7 2014-15 8 2015-16* (In Process) PEEF 11,021 11,021 940 DFID 8,594 8,594 356 PEEF 11,250 11,250 900 DFID 8,650 8,650 361 Total 100,233 47,243 5,611 *Budgeted figure The Punjab Educational Endowment Fund 33

Chamalang Beneficiaries Education Program(CBEP) The Honorable Chief Minister, Punjab while approving the request of Chamalang Beneficiaries Education Program (CBep) to accommodate their students in the Divisional Public Schools (dps)/boarding Schools of Punjab, has desired that PEEF may administer/coordinate with Education Department, Govt. of Baluchistan, CBep, School Education Department and Finance Department, Govt. of Punjab and finalize all modalities regarding admissions of students of CBEP in the Divisional Public Schools (dps)/boarding Schools of Punjab and disbursement of scholarships to their respective school. CBEP SR. NO. NAME OF DPS ENROLLMENT TOTAL DISBURSEMENT 1 DPS & COLLEGE SARGODHA 100 51,037,182 2 DPS & COLLEGE FAISALABAD 15 13,719,940 3 CHENAB COLLEGE JHANG 14 13,136,902 4 5 DPS & INTER COLLEGE LA- HORE MULTAN PUBLIC SCHOOL & COLLEGE 29 14,233,901 197 85,169,144 TOTAL 355 177,297,069 The Punjab Educational Endowment Fund 34

Youth Development Centre (YDC), Punjab House, Murree The Honorable Chief Minister, Punjab/Chairman-peeF has allocated the newly built 16 rooms, S Block, Punjab House, Murree, to PEEF to be used as boarding and educational facility for brilliant students. The premises are being used for the training of the brilliant students under the following categories: i. High Achievers Development Program (hadp) vii. Capacity Building workshops for PEEF scholars ii. Orientation and personality development program for students selected for PEEF Foreign Scholarships Program iii. Provincial Youth Council (Pyc) Development Program iv. Training of Trainers (TOT) of selected teachers to facilitate District wise training of PEEF scholars v. CM Essay Finalist Training viii. Inter Provincial Exchange Program ix. Entrepreneurial Skills Development workshops x. Capacity building programs for Special Children Since its establishment in Oct. 2010, so far 201 training cohorts have been held in YDC for 4,667 high achievers, including students from other provinces. vi. CM Debate Finalist Training The Punjab Educational Endowment Fund 35

Detail of Training Sessions conducted July 2014 to June 2015 Summary of Cohorts from 1st July 2014 to 30th June 2015 Sr.No 1 2 Programs Entrepreneurial Skills Development High Achievers Development Program Participants Male Females Total No of Batches Training Duration 63 64 127 6 3 Days 93 84 177 9 3 Days 3 IBA (STHP and NTHP) 15 5 20 1 3 Days 4 5 Special Capacity Building Program for Physically Challenged Children PEEF Scholarship Training Program 82 44 126 6 2 Days 101 50 151 9 3 Days 6 Centre of Excellence 61 3 64 3 3 Days 7 Punjab Board of Technical Education(PBTE) 55 12 67 3 3 Days Total 470 262 732 37 The Punjab Educational Endowment Fund 36

PEEF-DFID Scholarships Punjab Educational Endowment Fund (PEEF) and Department for International Development (DFID) UK Aid have signed Memorandum of Understanding (MOU) to provide 28,000 scholarships to meritorious and needy students for intermediate and Graduation Level Education. Under the proposed 5-year scholarship program; PEEF will provide 28,000 scholarships worth Rs. 1.625 billion. Out of the total allocated scholarships, 27,500 will be awarded to girl s students of eleven (11) less developed districts of Punjab to continue Intermediate level education while 500 scholarships will be awarded to meritorious students to peruse Graduation Level education through partner Centre of Excellences (coes). The target districts for intermediate Level Scholarships for girls students under the PEEF DFID Scholarship Program are: Chiniot Layyah Muzaffar Garh Lodhran Bahawalpur Bahawalnagar Rahim Yar Khan Vehari Dera Ghazi Khan Rajanpur Bhakkar The partner COEs to provide Graduation Level Scholarships are: LUMS COMSATS Lahore FAST Lahore Namal Mianwali Giki Swabi COMSATS Islamabad NUST Islamabad Progress 2014-15 During the FY 2014-15 8,594 Scholarships were awarded which include 8,443 for female students for completion of their intermediate level education in 11 less developed districts of Punjab. 151 scholarships were awarded to the meritorious students of centre of excellence (COEs) for graduation level education. Way Forward During the current year (2015-16) PEEF will award 8,650 additional scholarships 8,550 for intermediate Level Education and 100 for Graduation Level Education. The process of short listing the students has already started and PEEF will complete the process of awarding 8,650 additional scholarships by Jan. 2016. The total amount of the additional scholarships is estimated at Rs. 361 million. The Punjab Educational Endowment Fund 37

Monitoring the Scholarship Program-PEEF 1. OvERview: Education matters in social and economic development of the society. With this conviction peef heads toward its vision of creating a pool of talented youth among the less privileged segment of the society. In less than six years, PEEF reached to 97,467 students, assisting them in fulfilling their aspirations of quality education. M&E measures trends, patterns and impact of scholarship program by collecting and analyzing data through systematic approach. In order to ensure that scholarship policies are followed in selection of scholars and disbursement of stipend to the beneficiaries, M&E Section performed its functions at pre, during and post scholarship award stages. In year 2014-15, M&E conducted field visits to 120 random selected educational institutions from 20 Districts of all 9 Divisions of Punjab. During these visits more than 2800 Scholars of all levels and categories were interviewed on pre-set monitoring tools. An impact study of PEEF Scholarship program was conducted through the external agency and report of the study has shown results that procedures and policies adopted by PEEF are heading towards its goals. Furthermore, the progamm has significant impact on the ecnomic and social life of the beneficiaries. 2. Monitoring Functions: 2.1. Pre-Award Monitoring: At pre award stage, M&E section has accomplished desk verification of all scholarships levels and categories by following a systematic and sample based approach. Summary of the verified scholars numbers is as follows: Level/Category Total Scholarship Sample verification Secondary 1883 394 Intermediate 2674 591 Graduation 2607 570 DFID 8386 1725 Others 3374 3374 Total 18924 6654 1.2 1 0.8 100% 100% 100% 100% 100% 0.6 0.4 total scholarship hard verification 0.2 0 21% 22% 22% 21% Secondary Intermediate Graduation PEEF DFID others *Others: Master, COE s PEEF & DFID, Danish School, PBTE And Other Provinces The Punjab Educational Endowment Fund 38

2.2. Field Monitoring: Aim of the Field Monitoring was to oversee the programme implementation/processes and progress towards its objectives and seek feedback of beneficiaries and stakeholders for refinements in the processes. For this purpose monitoring team interviewed 2792 scholars and 135 other stakeholders including EDO-Educ., Deputy Director Colleges and Heads of educational institutions. A stratified sample was drawn from each level and category of scholarship to find more multidimensional results. Scholars receiving PEEF and PEEF-DFID scholarship have been visited and reports generated for information and future improvements in the programme strategies. 2.2.1. Summary of the field monitoring is as under PEEF Scholars Matric to Masters Sr. Category Districts No. of HOI s No. of Institutions No. of Scholars 1 Secondary, Intermediate, 17 68 68 351 Graduation 2 Masters - 3 3 95 DFID Sr. Category Districts No. of HOI s No. of Institutions No. of Scholars 1 Intermediate 11 37 37 2206 2 COE s - 7 7 136 Satisfaction level of PEEF Scholars: Feedback from beneficiaries shows that almost 100% were satisfied with the scholarship disbursement processes. Since PEEF has introduced payment of stipend through E-Card and no hard cash is involved in this regard. This is another step of PEEF towards empowering youth in basic social skills. 97 % 3 % To some extent Utilization of Scholarship Amount by Scholars: This shows that PEEF scholars are utilizing scholarship amount in fulfilling their educational expenditures. 100% scholars were utilizing scholarship stipend on their educational affairs including books, institutional Fee, uniform, transportation and supporting their sibling s education. 37 % Collage School Fee 2 % 17 % 9 % 21 % 6 % 8 % Uniform Books Others All Sibling Transport The Punjab Educational Endowment Fund 39

The Punjab Educational Endowment Fund 40 FINANCIALS 2014-15

i) Investment of Endowment Fund The Government of Punjab has provided Rs.11.00 billion for the Endowment Fund of PEEF, which has been invested in Term Deposit Receipts (tdrs) with The Bank of Punjab (BoP) and Habib Bank Limited (HBL). For the FY 2010-11, the Govt. of Punjab allocated Rs.1.94 billion which is parked with the Punjab Cooperatives Board for Liquidation (PCBL) and only the profits of this amount are forwarded to PEEF. So far, Rs.897.796 million has been received from PCBL, being the investment proceeds from August, 2010 to June, 2015. Sr. No. Period of TDRs Date of Maturity Rate of Interest p.a. Bank TDR Amount (Rs. in billion) 1 1 Year December 29, 2015 9.45% BOP 2.00 2 1 Year February 23, 2016 8.10% BOP 0.25 3 1 Year March 31, 2016 9.00% HBL 3.00 4 1 Year May 27, 2016 7.00% BOP 1.00 5 1 Year June 25, 2016 7.25% BOP 4.75 6 Rs.1.94 billion for the year 2010-2011 is parked with PCBL 1.94 TOtaL (A) 12.94 ii) Re-investment of 10% of the investment proceeds: To offset the impact of inflation on the Endowment Fund, it was approved in the 4th meeting of the Executive Committee held on August 19, 2009 that 10% of investment proceeds will be allocated to the Endowment Fund. Thereafter, Rs.432.772 million have so far been re-invested in the Endowment Fund being the 10% of the investment proceeds earned by the Company till December 29, 2014. Detail of re-investment is as follows: Sr. No. Period of TDRs Date of Maturity Rate of Interest p.a. TDR Amount (Rs. in billion) 1 1 Year December 29, 2015 9.45% 432.772 million TOtaL (B) 432.772 million TOtaL AMOUNT OF ENDOWMENT FUND (A+B) 13.37 Billion iii) InTErnal Audit: 100% internal audit is carried out by the Internal Audit Section to monitor the affairs of all Sections of peef. Internal Audit Reports are reviewed by the Audit Committee and Executive Committee and are then forwarded to the Board of Directors. The Punjab Educational Endowment Fund 41

iv) Scholarship Batch Audit: a. For the year 2009-10: by A.F. Ferguson & Co., Chartered Accountants. b. For the year 2010-11: by Ernst & Young Ford Rhodes Sidat Hyder, Chartered Accountants. c. For the year 2012-13 & 2013-14: by Ernst & Young Ford Rhodes Sidat Hyder, Chartered Accountants. v) Impact Analysis of PEEF Scholarships: In pursuance of the decision taken in the 18th Executive Committee meeting held on 25th June, 2013, Impact Assessment study for PEEF scholarships has been carried out by Ernst & Young Ford Rhodes Sidat Hyder, Chartered Accountants in 36 districts of Punjab. Impact Assessment Report was approved in the 12th Board of Directors meeting, held on 21st November, 2014. vi) ISO 9001:2008 Certification: PEEF was awarded certification for Quality Management System (ISO-9001:2008) in December 2009. Since then regular Surveillance Audits / Re-audits have been conducted in PEEF by the leading Audit Firms (Moody International / TUV Austria) and considering satisfactory performance of PEEF, continuation of Certification for ISO 9001:2008 has been extended to PEEF every year. vii) Annual Audit 2014-2015 For the Year Ended June 30, 2015 Duration of Audit One Year (1st July, 2014-30th June, 2015) External Auditors Ernst & Young Ford Rhodes Sidat Hyder, Chartered Accountants External Auditors Ranking i. One of the leading firms of Pakistan. ii. Category A firm as per list issued by the State Bank of Pakistan. iii. Approved audit firm of FBR and SECP. iv. Satisfactory quality control review rating being issued by the Institute of Chartered Accountant of Pakistan (ICAP). Auditor s Report Unqualified (clean report) Financial Statements including Balance Sheet, Income & Expenditure Statement and Notes to the Financial Statements are prepared on monthly basis and in accordance with the requirements of the International Financial Reporting Standards. Quarterly Accounts are presented to the Audit Committee and Board of Directors. All bank accounts are reconciled on regular basis. Regular physical verifications of fixed assets are carried out. All fixed assets are properly coded. Fixed asset register is maintained and is regularly reconciled with the general ledgers and physical assets Finance books of accounts/records/vouchers/documentations have been maintained in accordance with the best practices. Monthly Tax Statements have been properly filled in compliance with the requirements of Income Tax or Sales Tax laws. No pending tax liabilities. Audited Accounts along with Auditors Report thereon for the year ended June 30, 2015 is as follows: The Punjab Educational Endowment Fund 42

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The Punjab Educational Endowment Fund 60 Date:November 16, 2015.