JS Investments Limited...JS Investments Limited COMPANY INFORMATION 03 Board of Directors Mr. Basir...

JS Investments LimitedQuarterly Report for the period

ended 30 September, 2017

CONTENTS

Vision and Mission Statement......................................................................................02

Company Information..................................................................................................03

Directors' Report to the Shareholders.............................................................................04

Condensed Interim Balance Sheet....................................................................10

Condensed Interim Profit and Loss Account........................................................11

Condensed Interim Statement of Comprehensive Income............................................12

Condensed Interim Cash Flow Statement.......................................................................13

Condensed Interim Statement of Changes in Equity.....................................................14

Notes to the Condensed Interim Financial Statements..................................................15

Condensed Interim Consolidated Financial Statements.................................................26

01

JS Investments Limited

VISIONTo be recognized as a responsible asset manager respected for continuinglyrealizing goals of its investors.

MISSIONTo build JS Investments into a top ranking Asset Management Company;founded on sound values; powered by refined knowhow; supported bya committed team operating within an accountable framework of social,ethical and corporate responsibility - a strong and reliable institution forits shareholders to own; an efficient service provider and value creatorfor clients; an exciting and fulfilling work place for employees; and aparticipant worth reckoning for competitors.

BROAD POLICY OBJECTIVES

Value creation for clients on a sustainable basisMaintain high standards of ethical behaviors and fiduciary responsibilityManage Investments with Prudence and with the aim of providing consistentreturns better than that of peersTake Products and Services to the People; Create awareness onunderstanding financial goals, risks and rewardsProfessional Excellence – Adapt, Evolve and Continuously ImproveMaintain highly effective controls through strong compliance and riskmanagementA talented, diligent and diverse HR


02


COMPANY INFORMATION

03

Board of Directors Mr. Basir Shamsie ChairmanMr. Hasnain Raza Nensey Chief Executive OfficerMr. Muhammad Yousuf Amanullah Non-Executive DirectorMr. Suleman Lalani Non-Executive DirectorMr. Muhammad Raza Dyer Non-Executive DirectorMr. Kamran Jafar Non-Executive DirectorMr. Ahsen Ahmed Non-Executive DirectorMr. Asif Reza Sana Non-Executive Director

Chief Executive Mr. Hasnain Raza Nensey

Chief Financial Officer/ Company Secretary Mr. Muhammad Khawar Iqbal

Statutory Auditors EY Ford Rhodes

Legal Advisors Bawaney and Partners

BOARD COMMITTEES

Audit Committee Mr. Asif Reza SanaMr. Muhammad Raza DyerMr. Suleman Lalani

HR Committee Mr. Basir ShamsieMr. Kamran JafarMr. Ahsen Ahmed Mr. Hasnain Raza Nensey

Executive Committee Mr. Basir ShamsieMr. Muhammad Yousuf AmanullahMr. Kamran JafarMr. Ahsen Ahmed Mr. Hasnain Raza Nensey

Share Registrar Technology Trade (Private) Limited

241-C, Block-2, P.E.C.H.S., Karachi

Registered Office 7th Floor ,The Forum, G-20Khayaban-e-Jami, Block-9, CliftonKarachi-75600Tel: (92-21) 111-222-626Fax: (92-21) 35361724Email: [email protected]: www.jsil.com

mailto:[email protected]

http://www.jsil.com

04

DIRECTOR'S REPORT TO THE SHAREHOLDERSFOR THE PERIOD ENDED SEPTEMBER 30, 2017


On behalf of the Board of Directors, I am pleased to present the unconsolidated financial statements ofJS Investments Limited (JSIL) for the period ended September 30, 2017.

Macro Economic Highlights

During first nine months of 2017 (9MCY17), State Bank of Pakistan (SBP) announced the MPS (MonetaryPolicy Statement) five times (Jan'17, Mar'17, May'17, Jul'17, Sep'17) wherein it maintained the discountrate at 5.75%. The decision widely rested on the expectations that inflation targets are well likely to remainwithin targets set for the year. However, the central bank grows ever cautious of ballooning fiscal deficit.

Consumer Price Index (CPI) inflation in 9MCY17 averaged at 4.08% year over year (YoY) against 3.71%YoY in the same period last year, with comfortable wheat and sugar stocks. Further, no major disruptionis expected from supply side in the remaining months of CY17. Going forward, CPI is expected to remainmoderate with inflation expectation of 6.0% for the remaining year of CY17.

Large Scale manufacturing (LSM) for 7MCY17 showed a growth of 7.79%. Going forward, manufacturingactivity is expected to grow due to higher development spending, growing investments in CPEC-relatedprojects, improvement in security condition, and the continued trend of stable and low cost of borrowing.

The net total liquid foreign reserves plummeted to USD 19.76 billion by the end of 9MCY17, translatinga decrease of 14.8% from USD 23.20 billion. This decrease is attributable to external debt repayments.The current account deficit has deteriorated to USD 11.34 billion in 9MCY17 from USD 2.40 billionduring 9MCY16, which is driven by imports of goods such as petroleum products, machinery and metal.

Equity Market Performance

The KSE-30 Index posted a decline of 16.42% during 9MCY17, after succumbing to emerging economicconcerns and deteriorating political landscape. The index closed at a level of 21,606 at the end of theperiod after shedding 4,246. The market remained attuned to policy and politics where noise emergingon both fronts kept investor interest at bay. Average daily volumes stood at 71.9mn during the period.

Foreign investors remained net sellers during 9MCY17 with a net outflow of USD 422.01 million comparedto net outflow of USD 80.44 million in the corresponding period last year. Going forward, the directionof the market is likely to be dictated by the turn of political events, however, once the noise dies downwe can see investors exhibit further confidence and dictate direction as per profitability and earningsgrowth of listed companies.

Money Market Performance

During 9MCY17, average CPI during this time clocked in at 4.08% YoY compared to 3.71% YoY in9MCY16. This increase in inflation is primarily due to rise in food prices.

SBP borrowed funds worth PKR 9,891.53 billion in the Treasury Bills (T-bill) auctions held during theperiod against a target of PKR 8,350 billion where the bidding pattern was seen skewed towards 3-monthT- bill. Furthermore, SBP raised PKR 300.01 billion in Pakistan Investment Bonds (PIB) auctions held duringthe period against the same target. Bidding skewed towards 3 years PIB except for the last auction wherethe participation was also seen in 5 and 10 year PIBs. Moreover, no bids were received for 20 years PIB.

Going forward the worsening current account deficit couple with waning remittances pose the severethreat to the external account and possible reversal of inflation curve, which leads little room for downwardadjustment of policy rate.

The AMC Industry

During 9MCY17, the local mutual fund industry depicted an increase of PKR 48 billion (up by 8%) inAUMs reaching a level of PKR 682 billion by end of Sept 2017 from PKR 634 billion at Dec 2016.Overall, twenty two (22) new funds and plans were launched during this period.

Under Shariah Compliant Schemes, Equity Funds, Income Funds, Asset Allocation Funds and MoneyMarket Funds saw a growth of 5%, 43%, 78% and 130%, respectively. Cumulatively, these four categoriesrecorded an AUM increase of PKR 40 billion during the period.

Under Conventional Schemes, Income Funds and Equity Funds posted a decrease of PKR 17 billion andPKR 16 billion, respectively. Money Market Funds saw a staggering increase of PKR 37 billion.

Performance Review

JSIL posted a net profit of PKR 9.3 million as of September 30, 2017 showing earning per share (EPS)of PKR 0.12. AUMs were PKR 13.87 billion compared to PKR 13.52 billion for the year ended December31, 2016 depicting an increase of 2.59%. The company earned management remuneration from fundsunder management of PKR 154.49 million compared to PKR 111.91 million during the correspondingperiod last year witnessing an increase of 38.05%.

Future Outlook

JSIL closed 9MCY17 with AUMs at PKR 13.87 billion. The Company has envisaged on a strategy to tapthe retail market aggressively by expanding the sales team as well as launch of new funds. The Companyis under the process of launching a second Shariah compliant active allocation plan under JS IslamicHybrid Fund-of-Funds which will enhance investment solutions available to our clients and continue itselaborate efforts on brand building

Asset Manager and Entity Rating

JCR-VIS Credit Rating Company Limited has affirmed a Management Quality Rating of "AM2"(AM-Two)to JS Investments Limited. The rating denotes High Management Quality.

Pakistan Credit Rating Agency (PACRA) has maintained the long-term and short term ratings of theCompany of "A+" (Single A plus) and "A1" (A one) respectively. These ratings denote low expectation ofcredit risk emanating from a strong capacity for timely payment of financial commitments.

Acknowledgment

The Directors express their gratitude to the Securities and Exchange Commission of Pakistan (SECP) andTrustees of Funds under its management for their valuable support, assistance and guidance. The Boardalso thanks the employees of JSIL for their dedication and hard work and the shareholders for theirconfidence in the management.

On behalf of the Board

Hasnain Raza NenseyChief Executive OfficerKarachi: October 25, 2017


05

M. Raza DyerDirector

06


07


08


FINANCIAL STATEMENTS


ASSETS

Non-current assets

Property and equipment 5 376,184,246 373,686,528Intangible assets 6 2,496,386 1,617,337Long-term investment in subsidiary 37,500,000 37,500,000Long-term loans and prepayments - considered good 7 6,213,376 7,168,287 422,394,008 419,972,152

Current assetsBalances due from funds under management - related parties 111,653,093 115,188,859Loans and advances - considered good 3,482,601 1,905,138Trade deposits, short term prepayments and other receivables 8 33,667,178 28,317,112Other financial assets - investments 9 2,089,519,842 2,383,626,304Taxation - net 94,442,027 113,853,242Cash and bank balances 10 15,342,600 11,144,714Total Curent Assest 2,348,107,340 2,654,035,369Total assets 2,770,501,348 3,074,007,521

EQUITY AND LIABILITIES

Share capital and reserves

Share capital

Authorized capital 2,500,000,000 2,500,000,000

Issued, subscribed and paid-up capital 801,718,180 801,718,180Unappropriated profit 675,757,686 700,155,016Capital repurchase reserve account 198,281,820 198,281,820Unrealised appreciation on remeasurement ofavailable for sale investments - net 654,280,696 873,584,690 2,330,038,382 2,573,739,706

Surplus on revaluation of fixed assets - net of tax 185,197,858 191,614,859

LIABILITIES

Non current liabilities

Deferred tax liability - net 34,827,938 82,222,385 Long term lease liability 3,889,196 - 38,717,134 82,222,385Current liabilities

Accrued and other liabilities 11 215,023,773 226,430,571Current maturity of lease liability 1,524,200 -Total current liabilities 216,547,973 226,430,571Total liabilities 255,265,108 308,652,956

Contingencies and commitments 12

Total equity and liabilities 2,770,501,348 3,074,007,521

The annexed notes 1 to 20 form an integral part of this condensed interim financial information.

UNCONSOLIDATED CONDENSED INTERIM BALANCE SHEETAS AT SEPTEMBER 30 , 2017

10


Note

Sep 30,2017

Dec 31,2016

-----------Rupees-----------

(Un-audited) (Audited)

Chief Financial OfficerChief Executive Officer Director

11

UNCONSOLIDATED CONDENSED INTERIM PROFIT AND LOSSACCOUNT (UN-AUDITED)

FOR NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2017


---------Rupees---------

Sep 30,2017

Quarter endedSep 30,2016

---------Rupees---------

Sep 30,2017

Nine Months endedSep 30,2016

Note

INCOMERemuneration from funds under management - gross 174,570,367 140,760,573 57,037,964 42,482,847Less: Sindh Sales tax 20,083,317 16,956,601 6,561,890 4,887,407Less: Federal excise duty - 11,890,832 - -Remuneration from funds under management - net 154,487,050 111,913,140 50,476,074 37,595,440

Commission from open end funds under management 7,700,396 3,066,784 1,311,849 1,959,158Dividend Income 40,746,025 26,879,322 - 9,693,223Net Gain on sale of investments - net 37,858,664 69,238,353 131,247 20,491,916Return on bank deposits under interest arrangements 975,919 949,633 295,246 296,505Management fee and share of profit from management of discretionary portfolios and non discretionary client portfolio 13 4,348,833 4,034,973 1,084,080 1,227,161 246,116,887 216,082,205 53,298,495 71,263,403

Administrative and marketing expenses (229,659,154) (195,845,248) (85,078,798) (67,256,142)OPERATING PROFIT/ (LOSS) 16,457,733 20,236,957 (31,780,302) 4,007,261

Other expenses 14 878,237 869,046 (492,346) 262,724Financial charges 192,796 11,620 104,501 2,200 15,386,701 19,356,291 (31,392,457) 3,742,337Other income 15 27,646,933 23,226,966 7,267,508 9,131,157

Profit/ (Loss) before taxation 43,033,634 42,583,257 (24,124,949) 12,873,494

Income tax expense- Current 28,758,240 15,508,194 6,181,974 1,376,375- Deferred (10,730,885) (4,751,006) (8,282,107) (1,960,743)- Prior 16 15,734,700 - - - 33,762,055 10,757,188 (2,100,133) (584,368)

Profit \ (loss) for period 9,271,578 31,826,069 (22,024,817) 13,457,861

Earnings \ (loss) per share 17 0.12 0.40 (0.27) 0.17 - basic and diluted



UNCONSOLIDATED CONDENSED INTERIM STATEMENT OFCOMPREHENSIVE INCOME (UN-AUDITED)FOR NINE MONTHS PERIOD ENDED SEPTEMBER 30,2017

---------Rupees---------

Sep 30,2017


---------Rupees---------

Sep 30,2017


Profit / Loss for the period 9,271,578 31,826,069 (22,024,817) 13,457,861

Other comprehensive income to be reclassified to profit and loss account in subsequent period

Unrealised appreciation on remeasurement of available for sale investments - net (219,321,592) 237,699,496 (215,872,972) 145,714,569

Reclassification adjustment relating to sale of investments (36,645,969) (67,202,021) - (20,271,823)

Related Tax 36,663,567 (13,701,302) 23,565,938 (11,213,684)

Total items that may be reclassified subsequently to profit or loss (219,303,994) 156,796,173 (192,307,034) 114,229,062

Total comprehensive Income/ (loss) for the period (210,032,416) 188,622,242 (214,331,851) 127,686,923

Surplus arising on revaluation of property and equipment has been reported in accordance with the requirements of the CompaniesOrdinance, 1984, in a separate account below equity.


12



UNCONSOLIDATED CONDENSED INTERIM CASH FLOWSTATEMENT (UN-AUDITED)FOR NINE MONTHS PERIOD ENDED SEPTEMBER 30,2017

Note

Sep 30,2016

Sep 30,2017

-----------Rupees-----------

CASH FLOWS FROM OPERATING ACTIVITIES Profit/(Loss) for the period before taxation 43,033,634 42,583,257

Adjustment for non-cash and other items: Remuneration from funds under management (154,487,050) (111,913,140)Commission from open end funds under management (7,700,396) (3,066,784)Dividend Income (40,746,025) (26,879,322)Depreciation 24,031,802 19,096,272Amortisation of intangible assets 571,914 417,026Financial charges 192,796 11,620Return on bank deposits under interest arrangements (975,919) (949,633)Net Gain on sale of investments (37,858,664) (69,238,353)Gain/(loss) on disposal of fixed assets (567,487) -Unrealized (appreciation) on revaluation of investments classified as HFT (1,198,647) (1,500,348) (175,704,043) (151,439,405)Increase / decrease in assets and liabilitiesLoans and advances (917,455) (2,801,275)Deposits, prepayments and other receivables (4,997,315) (20,099,678)Accrued and other liabilities (6,282,218) 3,644,573

(12,196,988) (19,256,380) (187,901,030) (170,695,785)

Taxes paid (25,081,725) (22,878,116)Remuneration and commission received from funds under management 165,723,212 101,223,416Net cash generated from operating activities (47,259,543) (92,350,485)

CASH FLOWS FROM INVESTING ACTIVITIESInvestments - net 77,196,210 75,471,194Payments for purchase of fixed assets (29,157,313) (8,016,767)Dividend received 40,746,025 26,879,322Return on bank deposits 918,069 1,056,286Proceeds from disposal of fixed assets 1,744,315 -Net cash (used) / generated in investing activities 91,447,306 95,390,035

CASH FLOWS FROM FINANCING ACTIVITIESFinancial charges paid (192,796) (11,620)Dividend paid (40,085,909) -Net cash used in financing activities (39,989,876) (11,620)

Net increase / (decrease) in cash and cash equivalents 4,197,887 3,027,930

Cash and cash equivalents at beginning of the period 11,144,714 12,743,292

Cash and cash equivalents at the end of the period 10 15,342,600 15,771,222


13



14

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OFCHANGES IN EQUITY (UN-AUDITED)FOR NINE MONTHS PERIOD ENDED SEPTEMBER 30,2017


TotalUnrealised gainon

remeasurementof available

for saleinvestments

CapitalRepurchase

Reserve Account

------ -------- -------- ------ Rupees-------- ------- -------- -----

Unappropriatedprofit

Balance as at January 01, 2016 801,718,180 198,281,820 615,677,768 491,901,151 2,107,578,919

Total Comprehensive income for the nine month period ended Sepember 30, 2016Profit for the period - - 31,826,069 31,826,069Other comprehensive income - net of tax - - 156,796,173 - 156,796,173 Total Comprehensive incomefor the period - - 156,796,173 31,826,069 188,622,242Transfer from surplus on revaluation of property & equipmenton account of :Surplus on revaluation of fixed assetsrealized during the period on accountof incremental depreciationcharged thereon - net of tax - - - 6,471,009 6,471,009

Balance as at September 30, 2016 801,718,180 198,281,820 772,473,941 530,198,229 2,302,672,170


Total Comprehensive income for the nine month period ended Sepember 30, 2017

Profit for the period - - - 9,271,578 9,271,578Other comprehensive income - net of tax - - (219,303,994) - (219,303,994)Total Comprehensive incomefor the period - - (219,303,994) 9,271,578 (210,032,416)Transfer from surplus on revaluation of property & equipmenton account of :Surplus on revaluation of fixed assetsrealized during the period on accountof incremental depreciationcharged thereon - net of tax - - - 6,417,001 6,417,001

Final Dividend for the year ended December 31 , 2016 - - - (40,085,909) (40,085,909)



Issued,subscribed

and paid upshare capital

Reserve

Capital Reserve Revenue Reserve


NOTES TO THE UNCONSOLIDATED CONDENSEDINTERIM FINANCIAL INFORMATION (UN-AUDITED)FOR NINE MONTHS PERIOD ENDED SEPTEMBER 30,2017

1 STATUS AND NATURE OF BUSINESS

JS Investments Limited (the Company) is a public listed company incorporated in Pakistan on February22, 1995 under the Companies Ordinance, 1984. The shares of the Company are quoted on thePakistan Stock Exchange (formerly known as "Karachi Stock Exchange") since April 24, 2007. Theregistered office of the Company is situated at 7th floor, 'The Forum', Khayaban-e-Jami, Clifton, Karachi.The Company is a subsidiary of JS Bank Limited (which has 65.16 percent direct holding in the Company)which is a subsidiary of JSCL (Jahangir Siddiqui & Co .Limited), ultimate parent.

1.1 The Company has obtained the license of an “Investment Adviser” and “Asset Management Company”(AMC) under the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (theNBFC Rules) and the Non-Banking Finance Companies and Notified Entities Regulations, 2008 (theNBFC Regulations). In addition, the Company has also obtained registration to act as Pension FundManager under the Voluntary Pension System Rules, 2005.

1.2 The Company is an asset management company and pension fund manager for the following at periodend:

1.2.1 Asset management company of the following funds:

Open-end mutual funds

- JS Value Fund- JS Growth Fund- Unit Trust of Pakistan- JS Income Fund- JS Islamic Fund- JS Fund of Funds- JS Islamic Income Fund (formerly JS Islamic Government Securities Fund)- JS Cash Fund - JS Large Cap. Fund - JS Capital Protected Fund V- JS Islamic Hybrid Fund of Funds

1.2.2 Pension fund manager of the following funds:

- JS Pension Savings Fund- JS Islamic Pension Savings Fund

2 STATEMENT OF COMPLIANCE

2.1 This unconsolidated condensed interim financial information has been prepared in accordance withthe requirements of International Accounting Standard 34 - Interim Financial Reporting (IAS 34), provisionsof the Companies Ordinance, 1984, the Non-Banking Finance Companies (Establishment and Regulation)Rules, 2003 (the NBFC Rules), the Non-Banking Finance Companies and Notified Entities Regulations,2008 (the NBFC Regulations) and directives issued by the Securities and Exchange Commission ofPakistan (SECP). Wherever the requirements of the NBFC Rules, the NBFC Regulations or directivesissued by the SECP differ, the requirements of the NBFC Rules, the NBFC Regulations or the directivesissued by the SECP shall prevail.

2.2 During the period, the Companies Act 2017 (the Act) has been promulgated, however, Securities and Exchange Commission of Pakistan vide its circular no. 23 of 2017 dated October 04, 2017 read withits press release of the same date, communicated that the Commission has decided that the companieswhose financial year / interim period closes on or before December 31, 2017 shall prepare their financialstatements in accordance with the provisions of the repealed Companies Ordinance, 1984.

2.3 The Securities and Exchange Commission of Pakistan (SECP) vide SRO 56 (1)/2016 DATED January28 2016, has notified that the requirements of IFRS 10 (Consolidated Financial Statements) and section 237 of the Companies Ordinance 1984 will not be applicable with respect to the investment in mutualfunds established under Trust structure.

2.4 These unconsolidated condensed interim financial information do not include all the information anddisclosures required in the unconsolidated annual financial statements, and should be read in conjunctionwith the unconsolidated financial statements of the Company as at December 31, 2016.

15


16


3 BASIS OF PREPARATION

3.1 These unconsolidated condensed interim financial information have been prepared under historical costconvention except for certain investments and office premises which are measured at fair value.

3.2 These unconsolidated condensed interim financial information have been presented in Pakistani Rupees,which is the Company's functional and presentation currency.

3.3 These unconsolidated condensed interim financial information are separate financial statements of theCompany in which the investment in subsidiary is stated at cost.

4 ACCOUNTING POLICIES

4.1 The accounting policies adopted for the preparation of these unconsolidated condensed interim financialinformation are the same as those applied in the preparation of the unconsolidated annual financialstatements for the year ended December 31, 2016, except as follows:

New / Revised Standards, Interpretations and Amendments

The Company has adopted the following accounting standard and the amendments and interpretationof IFRSs which became effective for the current period:

Standard or Interpretation

IAS 7 Statement of Cash Flows - Disclosure Initiative - (Amendment)

IAS 12 Income Taxes - Recognition of Deferred Tax Assets for unrealized losses (Amendments)

The adoption of above amendments to accounting standards did not have any effect on the Condensedinterim financial statements.

4.2 The financial risk management objectives and policies adopted by the Company are consistent with thosedisclosed in the unconsolidated annual financial statements of the Company for the year ended December31, 2016.

5 Property and Equipment

Opening WDV 359,366,319 359,859,662Addition during the period / year 5.1 35,818,875 25,568,916Disposal during the period / year 5.2 (1,176,828) -Depreciation for the period / year (24,031,802) (26,062,259)

369,976,564 359,366,319Capital work-in-progress - advance against purchase of assets 6,207,682 14,320,209

376,184,246 373,686,528

5.1 The following additions were made to tangible - property and equipment during the period:

Office equipment 4,299,243 8,515,065Vehicles 31,311,950 15,902,348Furniture and fixtures 207,682 1,151,503

35,818,875 25,568,916

5.2 The following disposals of tangible property and equipment were made during the period:

Office equipment (69,315) -Vehicles (1,107,513) -

(1,176,828) -

(Un-audited)Sep 30,2017

(Audited)Dec 31,2016

-----------Rupees-----------Note

5.3 The Company follows the revaluation model for its office premises. The office premises of the Companywas most recent revalued on May 31, 2014 by an independent valuer KG Traders Private Limited onthe basis of professional assessments of the market values. The revaluation resulted in a further surplusof Rs.124.20 million (May 31, 2009: Rs.170.740 million). Out of the total revaluation surplus ofRs.378.84 million, Rs.185.198 million net of tax (December 31, 2016: Rs.191.61 million) remainsundepreciated as at September 30, 2017. (Un-audited)

Sep 30,2017


-----------Rupees-----------Note6 INTANGIBLE ASSET

The additions were made to intangible assets during the period:

Opening WDV 1,617,337 1,734,992Additions during the year 1,450,965 438,750Amortisation for the year (571,914) (556,405)

2,496,388 1,617,337

7 LONG - TERM LOANS AND PREPAYMENTS - CONSIDERED GOODS

Long term prepayments 7.1 3,345,150 3,541,808Amortisation (294,903) (196,658)Loans to employees 7.2 5,268,137 4,829,075Less: Current maturity (2,105,008) (1,005,938)

6,213,376 7,168,287

7.1 This includes Rs. 3.050 million ( December 31 , 2016: 3.345 ) being payments made in respect of clubmembership fee next nine years to Karachi Boat Club.

7.2 This also includes Rs 3.163 million ( December 31 , 2016 : 3.823 million ) loans given to employeesfor purchase of motor vehicles , housing loans and general purpose cash loans.

8.1 This includes Rs.18.898 million (December 31, 2016: Rs.16.52 million) due from related parties onaccount of rent and expenses incurred on their behalf. It also includes Rs.3.169 million (December 31,2016: Rs.2.818 million) of expenses incurred on the formation of funds under management.

17


8 TRADE DEPOSITS, SHORT TERM PREPAYMENTSAND OTHER RECEIVABLES

Deposits 1,211,756 1,224,006Prepayments 9,513,430 5,809,512Others 8.1 22,941,992 21,283,594

33,667,178 28,317,112



-----------Rupees-----------Note

9 OTHER FINANCIAL ASSETS - INVESTMENTS

Investments classified as Available for Sale 9.1 1,862,602,956 2,136,805,539

Unit of mutual funds - related parties

Investments classified as Fair value through Profit Held for Trading 9.2 226,916,886 246,820,765

Units of mutual fund - related parties2,089,519,842 2,383,626,304



-----------Rupees-----------Note

18


10.1 These carry mark-up at rates ranging from 3.75% to 6.25% (2016: 3.75% to 6.25%) per annum. Itincludes Rs.13.786 million (December 31, 2016: Rs.9.583 million) held with JS Bank Limited (Theparent company).

9.1 Units of mutual funds - related parties

Sep, 302017

Dec, 312016

Number of Unit Name of Fund

-------------------- Rupees--------------------

Sep 30 , 2017(Un-audited)

Dec 31, 2016(Audited)

2,565,210 2,745,548 JS Value Fund 357,980,530 563,961,495 705,935,2993,554,958 3,606,837 JS Growth Fund 551,228,794 704,450,380 804,829,563

240,000 240,000 JS Pension Savings Fund - Equity 14,776,800 119,328,000 129,504,000177,761 177,761 JS Pension Savings Fund - Debt 17,776,120 41,039,727 39,590,973177,463 177,463 JS Pension Savings Fund - Money Market 17,746,342 33,063,209 32,143,948

3,441,521 3,355,325 JS Fund of Funds 181,553,402 182,882,431 193,770,021200,000 200,000 JS Islamic Pension Savings Fund - Equity 18,170,000 138,144,000 152,800,000213,852 213,852 JS Islamic Pension Savings Fund - Debt 21,385,170 41,957,703 41,262,685222,303 222,303 JS Islamic Pension Savings Fund - Money Market 22,230,337 37,776,011 36,969,050

1,202,847,494 1,862,602,956 2,136,805,539Unrealized appreciation on remeasurement at fair value 659,755,462 - - 1,862,602,956 1,862,602,956 2,136,805,539

Fair valueFair valueAverage cost

9.2 Units of mutual funds - related parties (Held for trading)

Sep, 302017

Dec, 312016


-------------------- Rupees--------------------



1,209,282 55,020 JS Cash Fund 122,754,252 124,447,247 5,789,732- 905,487 JS Income Fund - - 90,159,338

1,007,964 1,469,339 JS Islamic Income Fund (Formerly: JS IGSF) 102,963,988 102,469,639 150,871,695 225,718,240 226,916,886 246,820,765

Unrealized appreciation on remeasurement at fair value 1,198,647 - - 226,916,886 226,916,886 246,820,765




-----------Rupees-----------Note10 CASH AND BANK BALANCES

Cash in hand 59,122 71,476

Cash at bank in: Current accounts 169,048 169,048 Savings accounts 10.1 15,114,430 10,904,190 15,283,478 11,073,238 15,342,600 11,144,714

11 ACCRUED AND OTHER LIABILITIES

11.1 This includes Rs.92.284 million (December 31, 2016: Rs.92.284 million) payable against Federal ExciseDuty (FED) on management fees received / receivable from the Funds under management. The amountis being held for payment to Federal Board of Revenue on the basis of stay order of the Honorable HighCourt of Sindh dated September 04, 2013. The stay order was granted a result of petition filed by assetmanagement companies on the forum of MUFAP against the amendment in Finance Act, 2013 whichlevied FED on the fees received by asset management companies from funds under management.

The Sindh High Court in its decision dated July 16, 2016 maintained the previous order passed againstother constitutional petition whereby levy of FED is declared to be ‘Ultra Vires’ the Constitution. OnSeptember 23 , 2016 The federal Government has filed an appeal against the said SHC order in theHonorable Supreme Court of Pakistan (SCP) and thus the previous balance of FED has not been reversed.

Further, the Federal Government vide Finance Act 2016 has excluded asset management companiesand other non-banking finance companies from charge of FED on their services. Accordingly, no provisionfor FED is made from July 01, 2016 onwards.

11.2 Prior to certain amendments made through the Finance Acts of 2006 and 2008, Workers' Welfare Fund(WWF) was levied at 2% of the total income assessable under the Income Tax Ordinance, 2001 excludingincomes falling under the Final Tax Regime (FTR). Through Finance Act, 2008, an amendment was madein Section 4(5) of the WWF Ordinance, 1971 (the Ordinance) whereby WWF liability is applicable at2% of the higher of the profit before taxation as per the accounts or declared income as per the return.

Aggrieved by the amendments made through the Finance Act, 2008, certain stakeholders filed petitionagainst the changes in the Lahore High Court which struck down the aforementioned amendments tothe WWF Ordinance in 2011. However, the Honorable High Court of Sindh in the year 2013 did notaccept the above arguments and declared the amendments made through Finance Act as valid. Boththese decisions were later challenged in the Honorable Supreme Court of Pakistan.

The Honorable Supreme Court of Pakistan passed a judgment on 10 November 2016, declaring theinsertion of amendments introduced in the Finance Acts pertaining to Workers' Welfare Fund as unlawfuland thereby striking down such amendments. However, a petition has been filed in the HonorableSupreme Court of Pakistan for the review of the aforementioned judgement. In view of the said reviewpetition, the Company on the basis of abundant caution has continued to maintain provision of Rs.57.619million against the Workers' Welfare Fund as at the year end.

12 CONTINGENCIES AND COMMITMENTS

12.1 CONTINGENCIES

In respect of the appeals filed by the Company before Commissioner Inland Revenue (Appeals) [CIR(Appeals)] against orders passed for tax years 2006 and 2009 against demand of Rs.162 million and66 million respectively, the CIR (Appeals) had not accepted the basis of additions by tax authorities andset aside both the orders in respect of allocation of expenses between various sources of income for freshproceedings with the directions to apportion the common expenditure according to actual incurrenceof expenditure to the various sources of income.

In respect of above said order of CIR (Appeals) for tax year 2006 and 2009, the Company filed secondappeal before the Appellate Tribunal Inland Revenue (ATIR) in respect of apportionment of expenses,which is currently pending for adjudication.

The Appellate Tribunal Inland Revenue vide order dated May 21, 2016 was deleted the additions of taxamortization of management rights and remand back the issues of disallowed provisions and advertisementexpenses for the tax year 2009.

19


The tax authorities issued orders giving effect (hereinafter referred collectively as ‘appeal effect orders’)to the order of CIR (Appeals) for both tax year 2006 and 2009 whereby demands for these tax yearswere reduced at Rs 77.33 million and Rs 59.93 million respectively. As the allocation of expenditure inthe said appeal effect orders were not made according to actual incurrence of expenditure to the varioussources of income, therefore, the Company again filed appeals before the CIR (Appeals) against the saidorders.

In respect of second appeal filed by the Company before CIR (Appeals) against appeal effect orders fortax year 2006 and 2009, the CIR (Appeals) for tax year 2006 confirmed apportionment of expendituremade by the tax authorities in appeal effect order, however, adjustment of allowable expenses were setaside. For tax year 2009, CIR (Appeals) had set aside the appeal effect order in entirety for freshassessment, which is yet to be made by tax authorities.

The Company has filed second appeal for tax year 2006 in the Appellate Tribunal Inland Revenue (ATIR)in respect of apportionment of expenditure made by tax authorities in appeal effect order earlier confirmedby CIR (Appeals).The ATIR deleted the addition on proration of expenses.

The CIR (Appeals) also rectified the order passed by his predecessor for tax Year 2006, whereby theaddition regarding the portion of capital gain included in dividend received from mutual funds was helddeleted. Resulted appeal effect order reflects refund of Rs. 29 million. The tax authorities have filed anappeal before ATIR against said order of CIR (Appeals) in respect of deletion of addition regarding theportion of capital gain included in dividend. The ATIR vide order dated December 07, 2016 set-asidewith the direction that the ACIR should examine the issue in the light of FBR Circular letter dated September10, 2002.

In respect of tax year 2006, management contends, based on views of its tax advisor, that amendmentof assessment for such tax year by tax authorities is time barred. Accordingly, the Company has filed anappeal before the Appellate Tribunal Inland Revenue. The ATIR of the view that the amendment ofassessment is not time bared however, the ATIR deleted the addition of tax amortization of managementright vide order dated February 10, 2017.

Management, based on views of its legal counsel ,is confident of favourable outcome in respect of theabove matters.

13 COMMISSION INCOME AND SHARE OF PROFIT FROM MANAGEMENT OF DISCRETIONARYCLIENT PORTFOLIOS AND NON DICRETIONARY CLIENT PORTFOLIO

This represents commission income and share of profit earned by the company from management ofdiscretionary portfolios and three non-discretionary portfolio. Currently, the company is managing Fifteen(September 30, 2016: Fifteen) discretionary client portfolios and non-discretionary portfolio. The totalcost and total market value of the unsettled client portfolios as at September 30, 2017 was Rs. 380.99million (September 30, 2016: 431.19 million) and Rs. 346.56. million (September 30, 2016: 457.43million) respectively.

14 OTHER EXPENSES

In view of promulgation of Sindh Workers' Welfare Fund Act, 2014, wherein the financial institutionshave also been brought into definition of Industrial establishments, the Company has recognized aprovision of Rs. 0.878 (Sep 30, 2016:0.869) for the period. However, the Company's management isalso considering to contest this at an appropriate legal forum.


20



-----------Rupees-----------

Royalty and advisory payment - a related party 2,500,000 10,000,000

12.2 Commitments in respect of:

15 OTHER INCOME

This includes rental income earned during the period amounting to Rs.16.50 million (Sep 30, 2016:14.793 million) .

16 INCOME TAX EXPENSE - Prior

This represents a provision of tax as required under section 5A of Income Tax Ordinance 2001, amendedthrough Finance Act 2017.

17 EARNINGS PER SHARE

21


18.1.2 Transactions with Ultimate Parent - Jahangir Siddiqui & Co. Ltd.

Expenses incurred on behalf of company 46,300 36,070Reimbursements of expenses incurred on behalf of JSCL 70,000 25,531

Sep, 302017

Quarter endedSep 30 ,

2016Sep, 302017

Nine months endedSep 30 ,

2016

Profit for the period Rupees: 9,271,578 31,826,069 (22,024,817) 13,457,861

Weighted average number of ordinary shares outstanding during the period Number: 80,171,818 80,171,818 80,171,818 80,171,818

Earning / (loss) per share Rupees: 0.12 0.40 (0.27) 0.17

17.1 Diluted earnings per share has not been presented as the Company does not have any convertibleinstruments in issue as a Sep 30, 2017 and Sep 30, 2016 which would have any effect on the earningsper share if the option to convert is exercised.

18 TRANSACTIONS AND OUTSTANDING BALANCES WITH RELATED PARTIES

Sep 30,2017

Sep 30,2016

-----------Rupees-----------18.1 Transaction with related parties

18.1.1 Transaction with Funds Under Managment

Remuneration - net of taxes 154,487,050 111,913,140Commission income 7,700,396 3,066,784Investments made 352,512,095 328,731,275Investments disposed off 429,708,302 404,202,466Dividend Income 40,746,025 26,879,322Expenses incurred by the company on behalf of funds 14,069,348 10,425,643Reimbursements of expenses by the funds 11,424,200 7,354,859

(Un-audited)

18.1.4 Transactions with other related parties

Rent income 11,762,354 12,582,307Insurance premium paid 4,219,572 2,998,722Provident fund contributions made 5,276,378 4,055,831Expenses incurred on behalf of companies 4,458,770 5,309,730Reimbursements of expenses by the companies 4,984,381 2,899,886Other payments made 18.1.4.1 - 11,111,060

18.1.4.1 This amount was received by the Company on behalf of Jahangir Siddiqui Securities Services Limited(JSSSL) and the Company paid the same to JSSSL.

Sep 30,2017

Sep 30,2016

-----------Rupees-----------

(Un-audited)

Note18.1.5 Transactions made with Common directorship

Expenses incurred 296,974 798,406Donation Paid - 3,556,536

18.1.6 Transactions made with Subsidiary Company

Expenses incurred on behalf of company 90,000 99,000Reimbursements of expenses by the company 90,000 105,900

18.1.7 Transactions with key management personnel

Remuneration 56,238,043 41,634,827Directors Fee 275,000 275,000Disbursements of personal loans and advances 470,000 1,232,800Repayments of loans and advances 767,914 1,041,357

18.2 Balance outstanding with related parties

18.2.1 Balances due from Fund Under Management 117,210,716 118,146,835

18.2.2 Balances outstanding from Ultimate Parent company:

Jahangir Siddiqui & Co. Limited - Ultimate Parent company

Receivable against expenses incurred on behalf of companies 24,384 48,084



-----------Rupees-----------


22

Sep 30,2017

Sep 30,2016

-----------Rupees-----------

(Un-audited)

Note18.1.3 Transactions with parent company - JS Bank Limited (JSBL)

Rent income 4,734,729 2,211,119Rent expense 5,416,058 2,225,598Management fee sharing on distribution of mutual funds 134,810 -Expenses incurred on behalf of company 2,064,238 497,465Reimbursements of expenses by the company 1,968,100 271,444Return on bank deposits 910,955 850,710

18.2.4 Balances outstanding with other related parties

Receivable against expenses incurred on behalf of companies 4,402,510 4,903,290Payable against Provident Fund Contribution 631,878 456,318Rent receivable 4,615,322 1,524,394Rent payable 2,289,734 2,289,734

18.2.5 Balances outstanding with Common directorship

Receivable against expenses incurred on behalf of company - 597,249

18.2.6 Balances outstanding from Subsidiary :

Receivable against expenses incurred on behalf of company 20,000 20,000

18.2.7 Balances outstanding from Key Management personnel

Balance as at 1,208,085 1,505,999

18.3 Other balances outstanding with related parties as at the period end have been disclosed in the relevantbalance sheet notes.

18.4 Key management personnel are those persons having authority and responsibility for planning, directingand controlling the activities of the company. The management considered all members of theirmanagement, including the Chief Executive Officer and Directors to be the key management personnel

18.5 There are no transactions with key management personnel other than under their terms of employment.

19 FAIR VALUE OF FINANCIAL INSTRUMENTS

IFRS 13 establishes a single source of guidance under IFRS for all fair value measurements and disclosuresabout fair value measurement where such measurements are required as permitted by other IFRSs. Itdefines fair value as the price that would be received to sell an asset or paid to transfer a liability in anorderly transaction between market participants at the measurement date (i.e. an exit price). Adoptionof IFRS 13, has not affected the condensed interim financial information.

Financial assets which are tradable in an open market are revalued at the market prices prevailing onthe balance sheet date. The estimated fair value of all other financial assets and liabilities is considerednot significantly different from book value.

23




-----------Rupees-----------18.2.3 Balances outstanding with Parent company:

JS Bank Limited - Parent company

Receivable against expenses incurred on behalf of companies 857,379 761,241Rent payable 1,150,720 1,349,332Rent receivable 3,359,462 6,210,845Profit on bank deposits 61,468 85,048

The following table shows financial instruments recognised at fair value, analysed between those whosefair value is based on:

Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assetsor liabilities.

Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived fromprices).

Level 3: Fair value measurements using inputs for the asset or liability that are not based on observablemarket data (i.e. unobservable inputs).

The table below analyse financial instruments measured at the end of the reporting nine months periodendded by the level in the fair value hierarchy into which the fair value measurement is categorised:

Total

Financial assets classified as'available-for-sale'

Units of mutual funds - related parties 1,862,602,956 - - 1,862,602,956

Financial assets 'at fair valuethrough profit or loss'- held-for-trading

Units of mutual funds - related parties 226,916,886 - - 226,916,886

2,089,519,842 - - 2,089,519,842

Level 3Level 2Level 1---------- (Rupees) ----------

Sep 30 , 2017

Total

Financial assets classified as'available-for-sale'


Financial assets 'at fair valuethrough profit or loss'- held-for-trading


2,383,626,304 - - 2,383,626,304


December 31 , 2016


24

20 GENERAL

20.1 In compliance of NBFC Rules 2003 read with SRO 1002(1)/2015 dated October 15, 2015 of Securitiesand Exchange commission of Pakistan , the management would like to report that the company (JSIL)has sufficient insurance coverage from an insurance company rated AA+ by a rating agency registeredwith the Commission against financial losses that may be caused as result of gross negligence of itsemployees.

20.2 These unconsolidated condensed interim financial information were authorised for issue onOctober 25, 2017 by the Board of Directors of the Company.

20.3 The figures in the unconsolidated condensed interim financial information have been rounded off to thenearest rupee.

20.4 Figures have been re-arranged and re-classified, wherever necessary, for the purpose of better presentation.


25


26

DIRECTOR'S REPORT TO THE SHAREHOLDERSFOR THE PERIOD ENDED SEPTEMBER 30, 2017


On behalf of the Board of Directors, I am pleased to present the consolidated financial statements ofthe company for the nine months period ended September 30, 2017.

Summary of operating results for the period

Rs. (000)Income 248,213 216,086Operating expenses (229,987) (196,155)Operating Profit (loss) 18,226 19,931Other expenses (913) (917)Financial charges (195) (12)Other operating income 27,647 25,942Profit (loss) before tax 44,764 44,944Taxation-net (33,945) (11,190)Profit after tax 10,819 33,753Earnings (loss) per share - basic and diluted (Re.) 0.13 0.42

Period endedSeptember 30,

2017

Period endedSeptember 30,

2016

Subsidiary Company

JS ABAMCO Commodities Limited

JS ABAMCO Commodities Limited (the Company) was incorporated in Pakistan as a public limitedcompany on September 25, 2007 under the Companies Ordinance, 1984 and is a wholly ownedsubsidiary of JS Investments Limited (the holding company).

On behalf of the Board

Hasnain Raza NenseyChief Executive OfficerKarachi: October 25, 2017

27


ASSETS

Non-current assets

Property and equipment 5 376,184,246 373,686,528Intangible assets 6 2,496,386 1,617,337Long-term loans and prepayments - considered good 7 6,213,376 7,168,287Deposit for membership 1,000,000 1,000,000Deposit for office premises 2,500,000 2,500,000 388,394,008 385,972,152

Current assetsBalances due from funds under management - related parties 111,653,093 115,188,859Loans and advances - considered good 3,482,601 1,905,138Trade deposits, short term prepayments and other receivables 8 33,712,197 28,314,625Other financial assets - investments 9 2,143,271,615 2,436,812,890Taxation - net 95,179,393 113,861,832Cash and bank balances 10 15,683,140 11,327,725Total Curent Assest 2,402,982,038 2,707,411,069Total assets 2,791,376,046 3,093,383,221

EQUITY AND LIABILITIES

Share capital and reserves

Share capital

Authorized capital 2,500,000,000 2,500,000,000

Issued, subscribed and paid-up capital 801,718,180 801,718,180Unappropriated profit 695,986,357 718,836,118Capital repurchase reserve account 198,281,820 198,281,820Unrealised appreciation on remeasurement ofavailable for sale investments - net 654,280,696 873,584,690 2,350,267,053 2,592,420,808

Surplus on revaluation of fixed assets - net of tax 185,197,858 191,614,859

LIABILITIES

Non current liabilities

Deferred tax liability - net 34,848,045 82,380,050 Long term lease liability 3,889,196 - 38,737,241 82,380,050Current liabilities

Accrued and other liabilities 11 215,649,693 226,967,504Current maturity of lease liability 1,524,200 -Total current liabilities 217,173,893 226,967,504Total liabilities 255,911,135 309,347,554

Contingencies and commitments 12

Total equity and liabilities 2,791,376,046 3,093,383,221


CONSOLIDATED CONDENSED INTERIM BALANCE SHEETAS AT SEPTEMBER 30 , 2017

Note

Sep 30,2017

Dec 31,2016

-----------Rupees-----------

(Un-audited) (Audited)


28


29

CONSOLIDATED CONDENSED INTERIM PROFIT AND LOSSACCOUNT (UN-AUDITED)

FOR NINE MONTHS PERIOD ENDED SEPTEMBER 30,2017


---------Rupees---------

Sep 30,2017

Quarter ended

Sep 30,2016

---------Rupees---------

Sep 30,2017

Nine Months ended

Sep 30,2016

Note

INCOMERemuneration from funds under management - gross 174,570,367 140,760,573 57,037,964 42,482,847Less: Sindh Sales tax 20,083,317 16,956,601 6,561,890 4,887,407Less: Federal excise duty - 11,890,832 - -Remuneration from funds under management - net 154,487,050 111,913,140 50,476,074 37,595,440

Commission from open end funds under management 7,700,396 3,066,784 1,311,849 1,959,158Dividend Income 40,746,025 26,879,322 - 9,693,223Net Gain on sale of investments - net 39,905,122 69,238,254 883,019 20,491,755Return on bank deposits under interest arrangements 1,025,366 953,746 298,499 297,957Management fee and share of profit from management of discretionary portfolios and non discretionary client portfolio 13 4,348,833 4,034,973 1,084,080 1,227,161 248,212,792 216,086,219 54,053,520 71,264,693

Administrative and marketing expenses 229,987,145 (196,155,379) 85,172,764 67,369,985OPERATING PROFIT/ (LOSS) 18,225,646 19,930,839 (31,119,244) 3,894,708

Other expenses 14 913,334 917,225 (479,346) 283,617Financial charges 194,779 11,620 104,500 2,200 17,117,533 19,001,994 (30,744,399) 3,608,891Other income 15 27,646,933 25,942,031 7,267,508 10,287,892

Profit/ (Loss) before taxation 44,764,466 44,944,025 (23,476,890) 13,896,782

Income tax expense- Current 29,079,061 15,947,589 6,181,974 1,377,118- Deferred (10,868,443) (4,756,657) (8,169,341) (1,822,122)- Prior 15,734,700 - - -

33,945,318 11,190,932 (1,987,367) (445,004)

Profit for period 10,819,147 33,753,092 (21,489,524) 14,341,785

Earnings per share 17 0.13 0.42 (0.27) 0.18 - basic and diluted



CONSOLIDATED CONDENSED INTERIM STATEMENT OFCOMPREHENSIVE INCOME (UN-AUDITED)

FOR NINE MONTHS PERIOD ENDED SEPTEMBER 30,2017

---------Rupees---------

Sep 30,2017


---------Rupees---------

Sep 30,2017


Note

Profit / Loss for the period 10,819,147 33,753,092 (21,489,524) 14,341,785

Other comprehensive income to be reclessified to profit and loss account in subsequent period

Unrealised appreciation on remeasurement of available for sale investments - net (219,321,592) 237,699,496 (215,872,972) 145,714,569

Reclassification adjustment relating to sale of investments (36,645,969) (67,202,021) - (20,271,823)

Related Tax 36,663,567 (13,701,302) 23,565,938 (11,213,684)

Total items that may be reclassified subsequently to profit or loss (219,303,994) 156,796,173 (192,307,034) 114,229,062

Total comprehensive Income/ (loss) for the period (208,484,847) 190,549,265 (213,796,558) 128,570,847

Surplus arising on revaluation of property and equipment has been reported in accordance with the requirements of the Companies Ordinance, 1984,in a separate account below equity.



30


CONSOLIDATED CONDENSED INTERIM CASH FLOWSTATEMENT (UN-AUDITED)FOR NINE MONTHS PERIOD ENDED SEPTEMBER 30,2017

Note

Sep 30,2016

Sep 30,2017

-----------Rupees-----------

CASH FLOWS FROM OPERATING ACTIVITIES Profit/(Loss) for the period before taxation 44,764,466 44,944,025

Adjustment for non-cash and other items: Remuneration from funds under management (154,487,050) (111,913,140)Commission from open end funds under management (7,700,396) (3,066,784)Dividend Income (40,746,025) (26,879,322)Depreciation 24,031,802 19,096,272Amortisation of intangible assets 571,914 417,026Financial charges 194,779 11,620Return on bank deposits under interest arrangements (1,025,366) (949,633)Net Gain on sale of investments (39,905,122) (69,238,254)Gain/(loss) on disposal of fixed assets (567,487) -Unrealized (appreciation) on revaluation of investments classified as HFT (1,198,647) (1,891,295) (176,067,132) (149,469,485)Increase / decrease in assets and liabilitiesLoans and advances (917,455) (2,801,275)Deposits, prepayments and other receivables (5,024,821) (20,122,809)Accrued and other liabilities (6,213,233) 3,769,477 (12,155,509) (19,154,607)

(188,222,641) (168,624,092)

Taxes paid (26,131,322) (23,319,518)Remuneration and commission received from funds under management 165,723,212 101,223,416Net cash generated from operating activities (48,630,752) (90,720,194)

CASH FLOWS FROM INVESTING ACTIVITIESInvestments - net 78,677,484 73,984,764Payments for purchase of fixed assets (29,157,311) (8,016,767)Dividend received 40,746,025 26,879,322Return on bank deposits 967,516 1,056,286Proceeds from disposal of fixed assets 1,744,315 -Net cash (used) / generated in investing activities 92,978,029 93,903,605

CASH FLOWS FROM FINANCING ACTIVITIESFinancial charges paid (194,779) (11,620)Dividend paid (40,085,909) -Net cash used in financing activities (39,991,860) (11,620)

Net increase / (decrease) in cash and cash equivalents 4,355,418 3,171,791

Cash and cash equivalents at beginning of the period 11,327,725 12,819,975

Cash and cash equivalents at the end of the period 10 15,683,142 15,991,766


31



CONSOLIDATED CONDENSED INTERIM STATEMENT OFCHANGES IN EQUITY (UN-AUDITED)FOR NINE MONTHS PERIOD ENDED SEPTEMBER 30,2017


32


------ -------- -------- ------ Rupees-------- ------- -------- -----



Profit for the period - - 33,753,092 33,753,092Other comprehensive income - net of tax - - 156,796,173 - 156,796,173

Total Comprehensive incomefor the period - - 156,796,173 33,753,092 190,549,265

Transfer from surplus on revaluation of property & equipmenton account of :Surplus on revaluation of fixed assetsrealized during the period on accountof incremental depreciationcharged thereon - net of tax - - - 6,417,009 6,417,009




Profit for the period - - - 10,819,147 10,819,147Other comprehensive income - net of tax - - (219,303,994) - (219,303,994)

Total Comprehensive incomefor the period - - (219,303,994) 10,819,147 (208,484,847)

Transfer from surplus on revaluation of property & equipmenton account of :Surplus on revaluation of fixed assetsrealized during the period on accountof incremental depreciationcharged thereon - net of tax - - - 6,417,001 6,417,001

Final Dividend for the year ended December 31 , 2016 (40,085,909) (40,085,909)


TotalUnrealised gainon

remeasurementof available

for saleinvestments

CapitalRepurchase

Reserve Account

Unappropriatedprofit

Issued,subscribed

and paid upshare capital

ReserveCapital Reserve Revenue Reserve


33

NOTES TO THE CONSOLIDATED CONDENSEDINTERIM FINANCIAL INFORMATION (UN-AUDITED)FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2017

1 STATUS AND NATURE OF BUSINESS

JS Investments Limited (the Company) is a public listed company incorporated in Pakistan on February22, 1995 under the Companies Ordinance, 1984. The shares of the Company are quoted on thePakistan Stock Exchange (formerly known as "Karachi Stock Exchange") since April 24, 2007. Theregistered office of the Company is situated at 7th floor, 'The Forum', Khayaban-e-Jami, Clifton, Karachi.The Company is a subsidiary of JS Bank Limited (which has 65.16 percent direct holding in the Company)which is a subsidiary of JSCL (Jahangir Siddiqui & Co .Limited), ultimate parent.

1.1 The Company has obtained the license of an “Investment Adviser” and “Asset Management Company”(AMC) under the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (theNBFC Rules) and the Non-Banking Finance Companies and Notified Entities Regulations, 2008 (theNBFC Regulations). In addition, the Company has also obtained registration to act as Pension FundManager under the Voluntary Pension System Rules, 2005.

1.2 The Company is an asset management company and pension fund manager for the following at periodend:

1.2.1 Asset management company of the following funds:

Open-end mutual funds

- JS Value Fund- JS Growth Fund- Unit Trust of Pakistan- JS Income Fund- JS Islamic Fund- JS Fund of Funds- JS Islamic Income Fund (formerly JS Islamic Government Securities Fund)- JS Cash Fund - JS Large Cap. Fund - JS Capital Protected Fund V- JS Islamic Hybrid Fund of Funds

1.2.2 Pension fund manager of the following funds:

- JS Pension Savings Fund- JS Islamic Pension Savings Fund

2 STATEMENT OF COMPLIANCE

2.1 This consolidated condensed interim financial information has been prepared in accordance with therequirements of International Accounting Standard 34 - Interim Financial Reporting (IAS 34), provisionsof the Companies Ordinance, 1984, the Non-Banking Finance Companies (Establishment and Regulation)Rules, 2003 (the NBFC Rules), the Non-Banking Finance Companies and Notified Entities Regulations,2008 (the NBFC Regulations) and directives issued by the Securities and Exchange Commission ofPakistan (SECP). Wherever the requirements of the NBFC Rules, the NBFC Regulations or directivesissued by the SECP differ, the requirements of the NBFC Rules, the NBFC Regulations or the directivesissued by the SECP shall prevail.

2.2 During the period, the Companies Act 2017 (the Act) has been promulgated, however, Securities andExchange Commission of Pakistan vide its circular no. 23 of 2017 dated October 04, 2017 read withits press release of the same date, communicated that the Commission has decided that the companieswhose financial year / interim period closes on or before December 31, 2017 shall prepare their financialstatements in accordance with the provisions of the repealed Companies Ordinance, 1984.

2.3 The Securities and Exchange Commission of Pakistan (SECP) vide SRO 56 (1)/2016 DATED January28 2016, has notified that the requirements of IFRS 10 (Consolidated Financial Statements) and section 237 of the Companies Ordinance 1984 will not be applicable with respect to the investment in mutualfunds established under Trust structure.

2.4 These consolidated condensed interim financial information do not include all the information anddisclosures required in the consolidated annual financial statements, and should be read in conjunctionwith the consolidated financial statements of the Company as at December 31, 2016.


34

5 Property and Equipment

Opening WDV 359,366,319 359,859,662Addition during the period / year 5.1 35,818,875 25,568,916Disposal during the period / year 5.2 (1,176,828) -Depreciation for the period / year (24,031,802) (26,062,259)

369,976,564 359,366,319Capital work-in-progress - advance against purchase of assets 6,207,682 14,320,209

376,184,246 373,686,528



-----------Rupees-----------Note

5.1 The following additions were made to tangible - property and equipment during the period:

Office equipment 4,299,243 8,515,065Vehicles 31,311,950 15,902,348Furniture and fixtures 207,682 1,151,503

35,818,875 25,568,916

5.2 The following disposals of tangible property and equipment were made during the period:

Office equipment (69,315) -Vehicles (1,107,513) -

(1,176,828) -

3 BASIS OF PREPARATION

3.1 These consolidated condensed interim financial information have been prepared under historical costconvention except for certain investments and office premises which are measured at fair value.

3.2 These consolidated condensed interim financial information have been presented in Pakistani Rupees,which is the Company's functional and presentation currency.

3.3 These consolidated condensed interim financial information are separate financial statements of theCompany in which the investment in subsidiary is stated at cost.

4 ACCOUNTING POLICIES

4.1 The accounting policies adopted for the preparation of these consolidated condensed interim financialinformation are the same as those applied in the preparation of the unconsolidated annual financialstatements for the year ended December 31, 2016, except as follows:

New / Revised Standards, Interpretations and Amendments

The Company has adopted the following accounting standard and the amendments and interpretationof IFRSs which became effective for the during the period:

Standards or Interpretations

IAS 7 Statement of Cash Flows - Disclosure Initiative - (Amendment)

IAS 12 Income Taxes - Recognition of Deferred Tax Assets for unrealized losses (Amendments)

The adoption of above amendments to accounting standards did not have any effect on the Condensedinterim financial statements.

4.2 The financial risk management objectives and policies adopted by the Company are consistent withthose disclosed in the consolidated annual financial statements of the Company for the year endedDecember 31, 2016.

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5.3 The Company follows the revaluation model for its office premises. The office premises of the Companywas most recent revalued on May 31, 2014 by an independent valuer KG Traders Private Limited onthe basis of professional assessments of the market values. The revaluation resulted in a further surplusof Rs.124.20 million (May 31, 2009: Rs.170.740 million). Out of the total revaluation surplus ofRs.378.84 million, Rs.185.198 million net of tax (December 31, 2016: Rs.191.61 million) remainsundepreciated as at September 30, 2017.

6 INTANGIBLE ASSET

The additions were made to intangible assets during the period:

Opening WDV 1,617,337 1,734,992Additions during the year 1,450,965 438,750Amortisation for the year (571,914) (556,405)

2,496,388 1,617,337



-----------Rupees-----------

7.1 This includes Rs 3.050 million ( December 31 , 2016: 3.345 ) being payments made in respect of clubmembership fee next nine years to Karachi Boat Club.

7.2 This also includes Rs 3.163 million ( December 31 , 2016 : 3.823 million ) loans given to employeesfor purchase of motor vehicles , housing loans and general purpose cash loans.



-----------Rupees-----------Note8 TRADE DEPOSITS, SHORT TERM PREPAYMENTSAND OTHER RECEIVABLES

Deposits 1,211,756 1,224,006Prepayments 9,558,449 5,827,025Others 8.1 22,941,992 21,263,594

33,712,197 28,314,625

8.1 This includes Rs.18.878 million (December 31, 2016: Rs.16.52 million) due from related parties onaccount of rent and expenses incurred on their behalf.It also includes Rs.3.169 million (December 31,2016: Rs.2.818 million) of expenses incurred on the formation of behalf of funds under management.

7 LONG - TERM LOANS AND PREPAYMENTS - CONSIDERED GOODS

Long term prepayments 7.1 3,345,150 3,541,808Amortisation (294,903) (196,658)Loans to employees 7.2 5,268,137 4,829,075Less: Current maturity (2,105,008) (1,005,938)

6,213,376 7,168,287

9 OTHER FINANCIAL ASSETS - INVESTMENTS

Investments classified as Available for Sale 9.1 1,862,602,956 2,136,805,539

Unit of mutual funds - related parties

Investments classified as Fair value through Profit and Loss Held for Trading 9.2 280,668,659 300,007,351

Units of mutual fund - related parties2,143,271,615 2,436,812,890



-----------Rupees-----------Note

9.1 Units of mutual funds - related parties

Sep, 302017

Dec, 312016


-------------------- Rupees--------------------



2,565,210 2,745,548 JS Value Fund 357,980,530 563,961,495 705,935,299 3,554,958 3,606,837 JS Growth Fund 551,228,794 704,450,380 804,829,563 240,000 240,000 JS Pension Savings Fund - Equity 14,776,800 119,328,000 129,504,000 177,761 177,761 JS Pension Savings Fund - Debt 17,776,120 41,039,727 39,590,973 177,463 177,463 JS Pension Savings Fund - Money Market 17,746,342 33,063,209 32,143,948 3,441,521 3,355,325 JS Fund of Funds 181,553,402 182,882,431 193,770,021 200,000 200,000 JS Islamic Pension Savings Fund - Equity 18,170,000 138,144,000 152,800,000 213,852 213,852 JS Islamic Pension Savings Fund - Debt 21,385,170 41,957,703 41,262,685 222,303 222,303 JS Islamic Pension Savings Fund - Money Market 22,230,337 37,776,011 36,969,050

1,202,847,494 1,862,602,956 2,136,805,539Unrealized appreciation on remeasurement at fair value 659,755,462 - -

1,862,602,956 1,862,602,956 2,136,805,539


10.1 These carry mark-up at rates ranging from 3.75% to 6.25% (2016: 3.75% to 6.25%) per annum. Itincludes Rs.13.786 million (December 31, 2016: Rs.9.583 million) held with JS Bank Limited (The parentcompany).

11. ACCRUED AND OTHER LIABILITIES

11.1 This includes Rs.92.284 million (December 31, 2016: Rs.92.284 million) payable against Federal ExciseDuty (FED) on management fees received / receivable from the Funds under management. The amountis being held for payment to Federal Board of Revenue on the basis of stay order of the Honorable HighCourt of Sindh dated September 04, 2013. The stay order was granted a result of petition filed by assetmanagement companies on the forum of MUFAP against the amendment in Finance Act, 2013 whichlevied FED on the fees received by asset management companies from funds under management.

1,209,282 55,020 JS Cash Fund 122,754,252 124,447,247 5,789,732 552,774 1,439,650 JS Income Fund 53,000,000 53,751,773 143,345,924 1,007,964 1,469,339 JS Islamic Income Fund 102,963,988 102,469,639 150,871,695(Formely JS Islamic Govt. Securities Fund)

278,718,240 280,668,659 300,007,351Unrealized appreciation on remeasurement at fair value 1,950,420 - -

280,668,659 280,668,659 300,007,351

9.2 Units of mutual funds - related parties (Held for trading)

Sep, 302017

Dec, 312016


-- -------- -------- -- Rupees---- -------- --------






-----------Rupees-----------Note10 CASH AND BANK BALANCES

Cash in hand 59,122 71,476Cash at bank in: Current accounts 189,048 189,248 Savings accounts 10.1 15,434,970 11,067,001 15,624,018 11,256,249 15,683,140 11,327,725


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The Sindh High Court in its decision dated July 16, 2016 maintained the previous order passed againstother constitutional petition whereby levy of FED is declared to be ‘Ultra Vires’ the Constitution. OnSeptember 23 , 2016 The federal Government has filed an appeal against the said SHC order in theHonorable Supreme Court of Pakistan (SCP) and thus the previous balance of FED has not been reversed.

Further, the Federal Government vide Finance Act 2016 has excluded asset management companiesand other non-banking finance companies from charge of FED on their services. Accordingly, no provisionfor FED is made from July 01, 2016 onwards.

11.2 Prior to certain amendments made through the Finance Acts of 2006 and 2008, Workers' Welfare Fund(WWF) was levied at 2% of the total income assessable under the Income Tax Ordinance, 2001 excludingincomes falling under the Final Tax Regime (FTR). Through Finance Act, 2008, an amendment was madein Section 4(5) of the WWF Ordinance, 1971 (the Ordinance) whereby WWF liability is applicable at2% of the higher of the profit before taxation as per the accounts or declared income as per the return.





12 CONTINGENCIES AND COMMITMENTS

12.1 In respect of the appeals filed by the Company before Commissioner Inland Revenue (Appeals) [CIR(Appeals)] against orders passed for tax years 2006 and 2009 against demand of Rs.162 million and66 million respectively, the CIR (Appeals) had not accepted the basis of additions by tax authorities andset aside both the orders in respect of allocation of expenses between various sources of income for freshproceedings with the directions to apportion the common expenditure according to actual incurrenceof expenditure to the various sources of income.

In respect of above said order of CIR (Appeals) for tax year 2006 and 2009, the Company filed secondappeal before the Appellate Tribunal Inland Revenue (ATIR) in respect of apportionment of expenses,which is currently pending for adjudication.

The Appellate Tribunal Inland Revenue vide order dated May 21, 2016 was deleted the additions of taxamortization of management rights and remand back the issues of disallowed provisions and advertisementexpenses for the tax year 2009.

The tax authorities issued orders giving effect (hereinafter referred collectively as ‘appeal effect orders’)to the order of CIR (Appeals) for both tax year 2006 and 2009 whereby demands for these tax yearswere reduced at Rs 77.33 million and Rs 59.93 million respectively. As the allocation of expenditure inthe said appeal effect orders were not made according to actual incurrence of expenditure to the varioussources of income, therefore, the Company again filed appeals before the CIR (Appeals) against thesaid orders.



-----------Rupees-----------

12.2 Commitments in respect of:

Royalty and advisory payment - a related party 2,500,000 10,000,000

13 COMMISSION INCOME AND SHARE OF PROFIT FROM MANAGEMENT OF DISCRETIONARYCLIENT PORTFOLIOS AND NON DICRETIONARY CLIENT PORTFOLIO

This represents commission income and share of profit earned by the company from management ofdiscretionary portfolios and three non-discretionary portfolio. Currently, the company is managing Fifteen(September 30, 2016: Fifteen) discretionary client portfolios and non-discretionary portfolio. The totalcost and total market value of the unsettled client portfolios as at September 30, 2017 was Rs. 380.99million September 30, 2016: 431.19 million) and Rs. 346.56. million (September 30, 2016: 457.43million) respectively.

14 OTHER EXPENSES

In view of promulgation of Sindh Workers' Welfare Fund Act, 2014, wherein the financial institutionshave also been brought into definition of Industrial establishments, the Company has recognized aprovision of Rs.0.913 million (Sep 30, 2016: 0.917 ) for the period. However, the Company's managementis also considering to contest this at an appropriate legal forum.

15 OTHER INCOME

This includes rental income earned during the period amounting to Rs.16.50 million (Sep 30, 2016:14.793 million).

16 INCOME TAX EXPENSE - Prior

Ths represents a provision of tax as required under section 5A of Income Tax Ordinance, 2001, amendedthrough Finance Act, 2017.


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In respect of second appeal filed by the Company before CIR (Appeals) against appeal effect orders fortax year 2006 and 2009, the CIR (Appeals) for tax year 2006 confirmed apportionment of expendituremade by the tax authorities in appeal effect order, however, adjustment of allowable expenses were setaside. For tax year 2009, CIR (Appeals) had set aside the appeal effect order in entirety for freshassessment, which is yet to be made by tax authorities.

The Company has filed second appeal for tax year 2006 in the Appellate Tribunal Inland Revenue (ATIR)in respect of apportionment of expenditure made by tax authorities in appeal effect order earlier confirmedby CIR (Appeals).The ATIR deleted the addition on proration of expenses.

The CIR (Appeals) also rectified the order passed by his predecessor for tax Year 2006, whereby theaddition regarding the portion of capital gain included in dividend received from mutual funds was helddeleted. Resulted appeal effect order reflects refund of Rs. 29 million. The tax authorities have filed anappeal before ATIR against said order of CIR (Appeals) in respect of deletion of addition regarding theportion of capital gain included in dividend.The ATIR vide order dated December 07, 2016 set-asidewith the direction that the ACIR should examine the issue in the light of FBR Circular letter dated September10, 2002.

In respect of tax year 2006, management contends, based on views of its tax advisor, that amendmentof assessment for such tax year by tax authorities is time barred. Accordingly, the Company has filed anappeal before the Appellate Tribunal Inland Revenue.The ATIR of the view that the amendment ofassessment is not time bared however, the ATIR deleted the addition of tax amortization of managementright vide order dated February 10, 2017.

Management, based on views of its legal counsel ,is confident of favourable outcome in respect of theabove matters.

18.1 Transaction with related parties

18.1.1Transaction with Funds Under ManagementRemuneration - net of taxes 154,487,050 111,913,140Commission income 7,700,396 3,066,784Investments made 352,512,095 328,731,275Investments disposed off 429,708,302 404,202,466Dividend Income 40,746,025 26,879,322Expenses incurred by the company on behalf of funds 14,069,348 10,425,643Reimbursements of expenses by the funds 11,424,200 7,354,859

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Sep 30,2017

Quarter endedSep 30 ,

2016Sep 30,2017

Nine months endedSep 30 ,

2016

Profit for the period Rupees: 10,819,147 33,753,092 (21,489,524) 14,341,785

Weighted average number of ordinaryshares outstanding during the period Number: 80,171,818 80,171,818 80,171,818 80,171,818

Profit/(Loss) per share Rupees: 0.13 0.42 (0.27) 0.18

17.1 Diluted earnings per share has not been presented as the Company does not have any convertibleinstruments in issue as a Sep 30, 2017 and December 31, 2016 which would have any effect on theearnings per share if the option to convert is exercised.

18 TRANSACTIONS AND OUTSTANDING BALANCES WITH RELATED PARTIES

17 EARNINGS PER SHARE

Sep 30,2017

Sep 30,2016

-----------Rupees-----------

(Un-audited)

18.1.4 Transactions with other related parties

Rent income 11,762,354 12,582,307Insurance premium paid 4,219,572 2,998,722Provident fund contributions made 5,276,378 4,055,831Expenses incurred on behalf of companies 4,458,770 5,309,730Reimbursements of expenses by the companies 4,984,381 2,899,886Other payments made 18.1.4.1 - 11,111,060

Sep 30,2017

Sep 30,2016

-----------Rupees-----------

(Un-audited)

Note

Sep 30,2017

Sep 30,2016

-----------Rupees-----------

(Un-audited)

18.1.2 Transactions with Ultimate Parent - Jahangir Siddiqui & Co. Ltd.

Expenses incurred on behalf of company 46,300 36,070Reimbursements of expenses incurred on behalf of JSCL 70,000 25,331

18.1.3 Transactions with parent company - JS Bank Limited (JSBL)Rent income 4,734,729 2,211,119Rent expense 5,416,058 2,225,598Management fee sharing on distribution of mutual funds 134,810 -Expenses incurred on behalf of company 2,064,238 497,465Reimbursements of expenses by the company 1,968,100 271,444Return on bank deposits 910,955 850,710

18.1.4.1 This amount was received by the Company on behalf of Jahangir Siddiqui Securities Services Limited(JSSSL) and the Company paid the same to JSSSL.


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18.1.5 Transactions made with Common directorship

Expenses incurred 296,974 798,406Donation Paid - 3,556,536

18.1.6 Transactions with key management personnel

Remuneration 56,238,043 41,634,827Directors Fee 275,000 275,000Disbursements of personal loans and advances 470,000 1,232,800Repayments of loans and advances 767,914 1,041,357

18.3 Other balances outstanding with related parties as at the period end have been disclosed in the relevantbalance sheet notes.

18.4 Key management personnel are those persons having authority and responsibility for planning, directingand controlling the activities of the company. The management considered all members of their

management,including the Chief Executive Officer and Directors to be the key management personnel

18.5 There are no transactions with key management personnel other than under their terms of employment.



-----------Rupees-----------18.2 Balance outstanding with related parties

18.2.1 Balances due from Fund Under Management 117,210,716 118,146,835

18.2.2 Balances outstanding from Ultimate Parent company:

Jahangir Siddiqui & Co. Limited - Ultimate Parent company

Receivable against expenses incurred on behalf of companies 24,384 48,084

18.2.3 Balances outstanding with Parent company:

JS Bank Limited - Parent company

Receivable against expenses incurred on behalf of companies 857,379 761,241Rent payable 1,150,720 1,349,332Rent receivable 3,359,462 6,210,845Profit on bank deposits 61,468 85,048

18.2.4 Balances outstanding with other related parties

Receivable against expenses incurred on behalf of companies 4,402,510 4,903,290Payable against Provident Fund Contribution 631,878 456,318Rent receivable 4,615,322 1,524,394Rent payable 2,289,734 2,289,734

18.2.5 Balances outstanding with Common directorship

Receivable against expenses incurred on behalf of company - 597,249

18.2.6 Balances outstanding from Key Management personnel

Balance as at 30 september 2017 1,208,085 1,505,999

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Total

Financial assets classified as'available- for-sale'


Financial assets 'at fair valuethrough profit or loss'- held-for- trading


2,436,812,890 - - 2,436,812,890


December 31 , 2016

19 FAIR VALUE OF FINANCIAL INSTRUMENTS

IFRS 13 establishes a single source of guidance under IFRS for all fair value measurements and disclosuresabout fair value measurement where such measurements are required as permitted by other IFRSs. Itdefines fair value as the price that would be received to sell an asset or paid to transfer a liability in anorderly transaction between market participants at the measurement date (i.e. an exit price). Adoptionof IFRS 13, has not affected the condensed interim financial information.

Financial assets which are tradable in an open market are revalued at the market prices prevailing onthe balance sheet date. The estimated fair value of all other financial assets and liabilities is considerednot significantly different from book value.

The following table shows financial instruments recognised at fair value, analysed between those whosefair value is based on:

Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assetsor liabilities.

Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that areobservable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from

prices).

Level 3: Fair value measurements using inputs for the asset or liability that are not based on observablemarket data (i.e. unobservable inputs).

The table below analyse financial instruments measured at the end of the reporting nine monthsperiod ended by the level in the fair value hierarchy into which the fair value measurement iscategorised:

Total

Financial assets classified as'available- for-sale'


Financial assets 'at fair valuethrough profit or loss'- held-for- trading


2,143,271,615 - - 2,143,271,615

Level 3Level 2Level 1

---------- (Rupees) ----------

Sep 30 , 2017

20 GENERAL

20.1 In compliance of NBFC Rules 2003 read with SRO 1002(1)/2015 dated October 15, 2015 of Securitiesand Exchange commission of Pakistan , the management would like to report that the company (JSIL)has sufficient insurance coverage from an insurance company rated AA+ by a rating agency registeredwith the Commission against financial losses that may be caused as result of gross negligence of itsemployees.

20.2 These unconsolidated condensed interim financial information were authorised for issue onOctober 25, 2017 by the Board of Directors of the Company.

20.3 The figures in the unconsolidated condensed interim financial information have been rounded off to thenearest rupee.

20.4 Figures have been re-arranged and re-classified, wherever necessary, for the purpose of better presentation.



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JS Investments Limited...JS Investments Limited COMPANY INFORMATION 03 Board of Directors Mr. Basir...

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