Post on 13-Jul-2020
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Management Company
FaysalAssetManagementLimited.
Board of Directors of the Management Company
Mr.FarookBengali,ChairmanMr.AhsanRazaDurrani,ChiefExecutiveOfficerMr.HassanMohamedMahmood,DirectorMr.MohammadKhanHoti,DirectorMr.Ajaz Rahim,DirectorMr.FerazRizvi,DirectorMr. IqbalAlimohamed,DirectorMf.AqeelKarimDhedhi,Director
CFOoftheManagementCompanyMr.MuhammadShakeelMusani
CompanySecretaryoftheManagementCompany
Mr.M.SiddiqueMemon
Audit Committee
Mr. IqbalAlimohamed,ChairmanMr.MohammadKhanHoti,MemberMr.Ajaz Rahim,MemberMr.FerazRizvi,Member
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FBGFendeavorstoprovideinvestors
withan opportunitytoearnincomeand
long-termcapitalappreciationby
investingin a largepooloffunds
representingequity/ nonequity
investmentsina broadrange
ofsectorsandfinancial
instruments.
Trustee
MuslimCommercialFinancialServices(Pvt.)Limited9th Floor,SheikhSultanTrustBuildingBeaumontRoadKarachi.
BankerstotheFund
. FaysalBankLimited.MuslimCommercialBankLimited
Auditors
FordRhodesSidatHyder&Co.,CharteredAccountants
legal Advisor
Bawa~fiYandPartners404,4 floorBeaumontPlazaBeaumontRoadKarachi
Registrars
GangjeesRegistrarServices(Pvt) Limited.Room# 506,5th Floor,CliftonCenter,KehkashanClifton- Karachi.
Distributors.FaysalAssetManagementLimited.FaysalBankLimited.AKDSecuritiesPrivateLtd..PICICCommercialBankLimited.InvestCapital&Securities.BolanBankLimited
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Quarterly & Nine Months Accounts March 2005 (Un-audited)FAYSALBALANCED.GROWTH FUND
REPORT OF THE DIRECTORS OF THE MANAGEMENT COMPANY
The Board of Directors of the Faysal Asset Management Limited, the management &mpany
of the Faysal Balanced Growth Fund (FBGF), is pleased to present accounts of FBGF for the
quarter and nine months period ended March 31, 2005. Since the Fund was launched in April
2004, no comparative data for the relevant quarter and nine months period of last year has
been published.
PERFORMANCE REVIEW
Quarter
ended
March
2005
Quarter
ended
December
Nine Months
ended ~March'" i
2004 2005
The profit after tax for the quarter amounted to Rs. 179 million showing an increase of 64% over
last quarter profit of Rs. 109 million. This significant surge is attributable to the increased net
realized and unrealized capital gains of Rs. 100 million earned during the quarter, of which
Rs. 19 million have already been distributed to the unit holders at the time of redemption.
The profit after tax for the nine months period ended March 31, 2005 amounted to Rs 307.23
million. Major contributors to income included Capital Gains (Rs. 424.76 million), Income from
Carry Over Transactions (COT) (Rs. 82.36 million) and Dividends (Rs. 28.53 million).
The operating expenses of the Fund have slightly increased mainly owing to an increase41 j"
Rs. 3 million in the brokerage and settlement charges due to an increase in trading activities.
The cumulative operating expenses for the nine months period of Rs. 56.47 million comprised
- mainly of remuneration of the Management Company of Rs. 32.72 million and brokerage and
settlement charges of Rs. 19.35 million.
The Fund has increased its equity allocation to 57% during the period. Being a balanced fund,
the Fund's NAV does not directly correlate to the KSE Index as the results are reflected below:
,~'i:',;~~~*,S~k!~~c~\~Z~1;);j;,,;~iij:'il~~!f~~~"'-i,,;~~;r::;:t:i1:iI<I;!ilJ!ltf:jf:riIi'i~J;.:~11~fc'i~if.!tiiNt~;<'>{ij~tt';'f~:KSE-100 Index
FBGF NAV7,770.52
116.46
5,280.96
98.43
47.14%
18.32%
4
Quarterly & Nine Months Accounts March 2005 (Un-audited)FAYSALBALANCED.GROWTH FUND
INVESTMENTS
As of 31 December, 2005, the total assets of the Fund were invested as below:
Cash& Cash
EquivalentsAdvancefor 14%
listedsecurities
8%
. Fixed Income20%
COT5%
ACKNOWLEDGEMENT
Equity53%
The Board of Directors of the Management Company thanks the Securities and ExchangeCommission of Pakistan for its valuable support, assistance and guidance. The Board alsothanks the employees of the Management Company and the Trustee for their dedication andhard word and the unit holders for their confidence in the Management.
Karachi: April 14, 2005
T (-1
For and on behalf of the Board
Ahsan Raza DurraniChief Executive Officer
'"
5
- Rupeesinmillions-iTotal Income 199.656 123.485 360.419
Operating Expenses 20.920 17.538 56.473 I- - IProfit Before Tax 178.736 105.947 303.943 q
Taxation - (3.280) (3.280)-Profit After Tax 178.736 109.227 307.226
Earnings per Unit -Rs. 10:68 ---s:iO -m
Quarter/~ & Nine Months Accounts March 2005 (Un-audited)FAYSALBALANCED ..GROWTHFUN0
STATEMENT OF ASSETS AND LIABILITIESAS AT MARCH 31, 2005
Note
March 31,2005
(Unaudited)Rupees
June 30,2004
(Audited)RupeesAssets
InvestmentsAdvanceagainstpurchaseofTermFinance
CertificatesAdvanceagainstpurchaseofPreferenceSharesAdvanceagainstpurchaseofOrdinarySharesReceivablesPreliminaryexpensesandfloatationcostsBankbalances
Totalassets
4 1,560,596,524
100,000,00050,000,00015,000,000
139,080,8352,079,453
88,984,2491,955,741,061
482,224,800
147,500,000
56
1,259,661,4541&\2,454,795'" I
114,734,050'2,006,575,099
Liabilities
Remunerationpayableto the ManagementCompanyRemunerationpayableto theTrusteeCreditors,accruedand other liabilities
Total liabilities
Commitments 7
Netassets
Unitholders' funds (as perstatementattached)
Numberof Units in issue
Net asset value per unit
The annexednotesform an integralpartof these financialstatements.
For Faysal Asset Management Limited(Management Company)
Ahsan Raza DurraniChief Executive Officer
Farook BengaiiChairman
For Muslim Commercial Financial Services (Private) Limited(Trustee)
Abdul Razzak H. AdamChief Executive
Quarterly & Nine Months Accounts March 2005 (Un-audited)FAYSALBALANCED.GROWTH FUND
..INCOME STATEMENT (UNAUDITED)FOR THE QUARTER AND PERIOD ENDED MARCH 31, 2005
Note
Quarter Nine'MonthsJan-March 2005 July -March 2005
Rupees RupeesIncome
Netgainon saleof held-far-tradinginvestmentsIncomefromreverserepurchasetransactionsof listedsecuritiesProfitearnedon TermFinanceCertificatesDividendincome
_etum on bankbalancesO
. .lementof incomeandcapitalgainsin pricesof unitssold lessthose in unitsredeemed
Unrealizedlosson held-far-tradinginvestments
369,811,31626,133,2829,352,2166,420,000
607,865
120.484.912)391,839,767192183.428199,656,339
424,755,15382,364,24018,556,41328,525,0801,787,302
4.5
TExpenses
Remunerationof the ManagementCompanyRemunerationof the Trustee
BrokerageandsettlementchargesBankchargesAuditors'remunerationSECPAnnualfeeListingfeeAmortizationof preliminaryexpensesandfloatationcosts
32,715,6502,204,651
19,352,68029,975
307,8711,453,962
33,000375,342
56.473.131303,946,27113,279.651)
307,225,922
18.36
I...
10,967,286733,989
8,482,6446,900
119,033487,413
123.28820,920.553
178,735,786ProfitbeforetaxProvisionfortaxationProfitaftertax 178,735,786
10.68ProfitperUnit
Theannexednotesform an integralpart of thesefinancialstatements.
f)1Ti -
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For Faysal Asset Management Limited(Management Company)
Ahsan Raza DurraniChief Executive Officer
For Muslim Com';'ercial Financial Services (Private) Limited(Trustee)
Farook BengaliChainman
Abdul Razzak H. AdamChief Executive
6
3,997,478 3,714,774262,589 247,282
3,260,353 4,316,6247,520,420 8,278,680
1,948,220,641 1,998,296,419
1,948,220,641 1,998,296,419
16,729,119 20,302,136
116.46 98.43
Quarterly, & Nine Months Accounts March 2005 (Un-audited)
FAYSALBALANCED ..GROWTH FUN0
DISTRIBUTION STATEMENT(UNAUDITED)FOR THE PERIOD ENDED MARCH 31, 2005
,"2005
Rupees
Accumulated loss as at July 1, 2004 (31,917,211)
Profit for the period ended March 31,2005 307,225,922
Accumulated income carried forward 275,308,711
The annexed notes form an integral part of these financial statements.
tJ"
4;,
-:For Faysal Asset Management Limited
(Management Company)
Ahsan Raza DurraniChief Executive Officer
Farook BengaliChairman
For Muslim Commercial Financial Services (Private) Limited(Trustee)
Abdul Razzak H, AdamChief Executive
8
Quarterly & Nine Months Accounts March 2005 (Un-audited)FAYSALBALANCED.GROWTH FUND
STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUNDS (UNAUDITED)FOR THE PERIOD ENDED MARCH 31, 2005
July. March2005
Rupees
Net assets as the beginning of the period. July 01, 2004 1,998,296,419
Amount received on issue of 288,860.8688 Units
Amount paid on redemption of 3,861 ,877.8688 Units31,667,422
(409,622,321 )
(377,954,899)
20,653,199
~
J
Element of income and capital gains in prices of units sold
,.ess those in units redeemedNet profit for the period
Net assets as at the end of the period
307,225,922
1,948,220,641
Net assets as at the end of the period. March 31, 2005 consist of:
Capital account 1,672,911,930
Undistributed profit carried forward 275,308,711
1,948,220,641
The annexed notes form an integral part of these financial statements.
)
}.
For Faysal Asset Management Limited(Management Company)
Ahsan Raza DurraniChief Executive Officer
Farook BengaiiChairman
For Muslim Commercial Financial Services (Private) Limited(Trustee)
Abdul Razzak H. AdamChief Executive
9
Quarterly & Nine Months Accounts March 2005 (Un-audited)FAYSALBALANCED .-GROWTH FUt)lD
CASH FLOW STATEMENT (UNAUDITED)FOR THE PERIOD ENDED MARCH 31, 2005
Cash Flow from Operating ActivitiesNet profitfromoperations before taxation
AdjustmentsUnrealized loss on "Held for trading" investmentsTransferred from unrealized loss to capital gainElement of income and capital gains in prices of units
sold less those in units redeemedRemuneration of Management CompanyRemuneration of TrusteeAmortization of preliminary expenses and floatation costs
(Increase)/Decrease in AssetsReceivables (excluding advance taxation)Advance against purchase of Term Finance CertificatesAdvance against purchase of Preference SharesAdvance against purchase of Ordinary Shares
Increase/(Decrease) in LiabilitiesCreditors, accrued and other liabilities (excluding taxation)
Investment in marketable securitiesAdvance tax paid
Remuneration paid to the Management CompanyRemuneration paid to the TrusteeNet cash inflow from operating activities
Cash Flow from Financing ActivitiesNet receipts/(payments) made against sale/(redemption) of unitsNet increase in balance with banks during the periodBalance with banks at the beginning of the periodBalance with banks at the end of the period
The annexed notes form an integral part of these financial statements.
For Faysal Asset Management Limited(Management Company)
Ahsan Raza DurraniChief Executive Officer
For Muslim Commercial Financial Services (Private) Limited(Trustee)
Abdul Razzak H. AdamChief Executive
'"July -March
2005Rupees
303,946,271
174,915,587
(28,783,319)
20,653,199
32, 715,65~\2,204,65'V
375,342506,027,381
2,223,380
(1,224,503,992)(2,423,301 )
(32,432,946)(2,189,344 )
352,205,098
(377,954,899)(25,749,801 )114,734,05088,984,249
f)
Farook BengaliChairman
10
Quarterly &Nine Months Accounts March 2005 (Un-audited)FAYSALBALANCED.GROWTH FUND
NOTES TO THE FINANCIAL STATEMENTS(UNAUDITED)FOR THE PERIOD ENDED MARCH 31, 2005
1. LEGAL STATUS AND NATURE OF BUSINESS
Faysal Balanced Growth Fund (the Fund) has been established under the Non-BankingFinance Companies (Establishment and Regulation) Rules, 2003 (the NBFC Rules) andhas been authorized as a unit trust scheme by the Securities and Exchange Commissionof Pakistan (SECP) on February 18, 2004. It has been co.n~uted under a Trust Deed,dated January 29, 2004, between Faysal Asset Management Limited, a company incorporatedunder the Companies Ordinance, 1984 and Muslim Commercial Financial Services (Private)Limited (MCFSL) as the Trustee, also incorporated under the Companies Ordinance,1984 and a wholly owned subsidiary of Muslim Commercial Bank Limited.
'8(The Fund is an open ended balanced mutual fund and offers units for public subscriptionon a continuous basis. The units are transferable and can also be redeemed by surrenderingto the Fund. The units are listed on the Karachi Stock Exchange.
The principal activity of the Fund is to make investments in equity market and fixed incomesecurities including money market instruments.
2. BASIS OF PRESENTATION
These financial statements have been prepared in accordance with the requirements ofthe International Accounting Standard - 34: Interim Financial Reporting as applicable inPakistan, Trust Deed and the Non-Banking Finance Companies (Establishment andRegulation) Rules, 2003.
3. ACCOUNTING POLICIES
The accounting policies and methods of computation followed for the preparation of thesefinancial statements are the same as those applied in preparing the financial statementsof the Fund for the period ended June 30, 2004.
11
March 31, June 30,2005 2004
Note Rupees Rupees
e. INVESTMENTS
Held-for-trading
Listed equity securities 4.1 1,125,120,524 482,224,800Listed debt securities 4.2 . 333,476,000
1,458,596,524 482,224,800Unlisted debt securities 4.3 102,000,000 -
1,560,596,524 482,224,800
FAYSAL FAYSALQuarterly & Nine Months Accounts March 2005 (Un-audited) BALANCED ... Quarterly & Nine Months Accounts March 2005 (Un-audited) BALANCED.
GROWTH FUND GROWTH FUND
No. of holding Acquired Bonus I right Disposed No of holding Markel value No. of holding Acquired Bonus I right Disposed No of holding Marketvalue
at the beginning during the shares received during the at the end of (Rupeesr % of at the beginning during the shares received during the attheend of (Rupees) % of
of period period during the period period the period net assets of period period during the period period the period net assets
No. of holdings . . No. of holdings
4.1 Listed equity securities' Oil and Gas Development Corporation 14,566.500 (13,928,800) 637,700 71,135,435 3.65%
-Pakistan Petroleum Limited 6,371,300 (5,521,300) 850,000 191,377,500 9.82%
. Ordinary share have a faC!!' value of Rs. 10/- each
Fertilizer
Cement FaujiFertilizerCompanyLimited 530,000 1,751,900 92,670 (2,224.570) 150,000 21,300,000 1.09%
D.G.KhanCementlimited 293,000 5,535,500 11,000 (5,089,500) 750,000 44,962,500 2.31% FaujiFertilizerBinQasimLimited 2,586,500 (2,086,500) 500,000 14,900,000 0.76%
KohatCementlimited 69,500 16,200 (85,700) :t) 8EngroChemicalPakistanLimited 946,900 (597,400) 349,500 45,033,075 2.31%
PioneerCementlimited 25,000 (25,000)CheeratCementLimited 2,500 (2,500)
Synthetic&Rayon
DewanSalmanFibresLimited 400,000 950,750 36,750 (687,500) 700,000 17,185,000 0.88%LuckyCementLimited 1,238,000 (770,000) 468,000 22,698,000 1.17%
FaujlCementLtd. 1,540,000 (1,040,000) 500,000 7,800,000 0.40%Technology and Communication
Pakistan Telecommunication Company Ltd. 2,824,000 16,409,500 (19,033,500) 200,000 14,050,000 0.72%InsuranceCompanies
CallmateTellpsTelecom 25,000 25,000 706,250 0.05%AdamjeeInsuranceCompanyLtd. 1,000,000 1,000,000 77,500,000 3.98% TeleCard 1,200,000 1,200,000 18,480,000 0.95%
Commercial BanksTextile Composite
Bank Of Punjab Limited 810,000 (810,000) KohinoorTextileMillslimITed 539,000 361,000 29,640 (921,070) 8,570 422.072 0.02%MuslimCommecialBankLimited 1,825,000 (1,625,000) 200,000 12,800,000 0.66% NaginaCottonMillsLimited 54,500 16,500 71,000 2,059,000 0.11%NationalBankofPakistan 1,677,300 (1,627,300) 50,000 5,795,000 0.30% AzgardNileLimited 1,207,000 (72,000) 1,135,000 43,130,000 2.21%UnionBanklimited 300,000 (100,000) 200,000 8,600,000 0.44% NishatMillsLimited 334,000 (334,000)AskarlCommercialBankLimited 1,188,600 20,000 (1,088,600) 120,000 10,146,000 0.52% Nishat(Chunian) 10,000 (10,000)BankAlfalahLimited 500,000 500,000 22,650,000 1.16%
Nationallnvestrnent Bank 200,000 200,000 5,800,000 0.30% PowerGeneration&Distribution
PICIC 25,000 (25,000) HubPowerCompanylimITed 3,000,000 3,375,000 (6,375,000)
Chemicals Refineries
ICIPakistanLimited 3,496,400 NationalRefinerylimited 307,800 (209,800) 98,000 39,288,200 2.02%(2,828,400) 668,000 63,693,800 3.27%
PakistanPTALimited 8,865,000 (8,865,000) ". 8 AttockRefineryLimited 40,000 (40,000)
TransportModarba
FirstHabibModarba 422,500 1,500 424,000 3,604,000 0.18%Pakistan Intemational Airlines 100,000 (100,000)
Close-EndMutualFundsOil&GasMarketingCompanies
PICICGrowthFund 1,250,000 (1,250,000)ShellPakistanLimited 35,000 3,500 (38,500)
PakistanStateOilCompanylimited 504,000 7,391,600 (7,410,600) 485,000 193,030,000 9.91% Paper&BoardSuiNorthernGasPipelinesCompanyLimited 4,004,900 (2,815,700) 1,189,200 68,379,000 3.51% PackagesLimited 26,100 (26,100)SuiSouthemGasCompanyLimited 650,000 (475,000) 175,000 4,287,500 0.22%
Cable&ElectricGoods
Oil&GasExplorationCompanies PakElectronLimited 732,000 47,310 (416,600) 362,710 18,498,210 0.95%
PakistanOilFieldsLimited 4,495,600 (4,195,600) 300,000 75,810,000 3.89%
8,249,000 97,801,420 238,870(92,772,610)13,516,680 1,125,120,52457.75%
-
12 13
Quarterly & Nine Months Accounts March 2005 (Un-audited)FAYSALBALANCED.GROWTH FUN.D
No.ofholdingAcquired Bonus1right Disposed NoofholdingMarketvalueatthebeginningdurtngthe sharesreceiveddurtngthe attheendof (Rupees)",%of
ofpertod pertod durtngthepertod pertod thepertod netassets
No.ofholdings
102 102,000,0005.24%
Quarterly & Nine Months Accounts March 2005 (Un-audited)FAYSALBALANCED.GROWTH FUND
5. RECEIVABLES.considered goodAgainstsale of held-far-tradinginvestmentsIn respectof reverserepurchasetransactionsoflistedequitysecuritiesOtherReceivables
DividendreceivableMark-upreceivableon TermFinanceCertificatesIncomereceivableon moneymarkettransactionsReturnreceivableon bankbalancesAdvanceTax
March 31,2005
Rupees
June 30,2004
Rupees
3,379,220
115,904,600
79,066,870
1,175,765,9554.2 Listed debt securities"
H TheseTFC'shaveafacevalueofRs.5,000/-each.
CommercialBanks
UnitedBankUmited
LeasingCompaniesTrustLeasingCompanyLimited
Oil & Gas Exploration Companies
ChandaOil& GasSecurttizationCompanyLTd.
InvestmentBanksICompaniesISecuritiesJehangirSiddiqui&Co.
-
4.3 Unlisted debt securities ..."'These TFCshavea facevalueof Rs.1,000,0001-each.
TransportandCommunicationSpellTelecom 102
102 - 102 102.000.000 5.24%
5.1
8,053,5008,912,857
231,172176,185
2,423,301
3,699,200- - 98,022
466,431564,976
- -4.4 Market Value of held for trading investments as at March 31, 2005
Cost of held for trading investments as at March 31,2005Cost of held for trading investment as at June 30, 2004
March 31,2005
Rupees
4.5 Net unrealized gain I (loss) during the period in the valueof investments classified as 'Held-far-trading'
Market value of marketable securities classified as'Held for trading'
Less: Cost of marketable securities classified as'Held for trading'
1,560,594,524
1,735,650,236
(175,053,712)
1.560.596.5241.735.650,236511,146.244
June 30,2004
Rupees
.482,224,800
511,146,244(28,921,444)
I ~ I
(28,921,444)
8 139,080,835 1,259,661,4545.1 Thismainlyrepresentstaxwithheldtill September30,2004underthe newlyinsertedSection233(A)
of the IncomeTaxOrdinance,2001 throughFinanceAct, 2004.This amountwill be claimedas refundableinthe returnof incomefor the yearending-June30, 2005.
6. PRELIMINARYEXPENSESAND FLOATATIONCOSTSBalanceat the beginningof the periodLess:Amortizationduringthe periodBalanceat the endof the period
7. COMMITMENTS
Carryover transactions(includingtransactionstobe rolledover)enteredinto by the Fund in respectof which the purchasetransactionhas not beensettled
8. TRANSACTIONSWITHCONNECTEDPERSONS
Faysal Asset Management LimitedRemunerationof ManagementCompanySalesload
Faysal Bank Limited. IssueofUnits
: , Profitondepositaccount
Aqeel Karim Dhedhi Securities (Pvt.) LimitedBrokeragefeePurchaseof marketablesecuritiesSaleof marketablesecurities
Profiton moneymarkettransactionsListedequitysecuritiespurchasedunder
resalecommitment
Listedequitysecuritiespurchasedunder resalecommitmentmatured
Issueof UnitsRedemptionof Units
2,454,795375,342
2,079,453
2,500,00045,205
2,454,795
NetunrealizedgainI (loss)in marketvalueof securitiesclassifiedas'Heldfortrading'atthebeginningoftheperiod
Less:Realisedon disposalduringtheperiod
14
242,612,500 2,463,021,625
(174,915,587)
15
25,000 25,000 124,976,0006.41%
4,500 4,500 20,250,000 1.04%
30,000 30,000 150,000,0007.7Of)
7,350 7,350 38,250,000 1.97%
68,850- -
66,850 333.476.00017.12%- -
32,715,650 9,102,109605,024 104,848
2,000,000Units1,698,528 2,953,187
1,747,480 125,7502,353,646,180 120,152,7501,476,766,425 . 12,412,200
3,293,391 7,043,753
11,330,393,885 24,974,335,140
11,332,622,936 24,653,153,3691,000,000Units
400,000Units
Quarterly & Nine Months Accounts March 2005 (Un-audited)FAYSALBALANCED.GROWTH FUND
9. DATE OF AUTHORISATION FOR ISSUE
These financial statements were authorized for issue by Board of Directors of ManagementCompany on April 14, 2005.
10. GENERAL
10.1 As the Fund was launched on April 17, 2004, there are no comparative figure toreport in respect of profit and loss account.
10.2 Figures have been rounded off to the nearest rupee.
41) 8
. .For Faysal Asset Management Limited
(Management Company)
Ahsan Raza DurraniChief Executive Officer
Farook BengaliChairman
For Muslim Commercial Financial Services (Private) Limited(Trustee)
Abdul Razzak H. AdamChief Executive
16