| PICIC Investment.Fund - 2005 |
============================================================================================= STATEMENT OF ASSETS AND LIABILITIES AS AT JUNE 30, 2005 ============================================================================================= 2005 2004 Notes (Rupees in '000') ============================================================================================= ASSETS: Bank balances - deposit accounts 400,934 128,467 Investments - held for trading 4 5,344,829 5,627,754 Receivable against sale of investments 264,144 239,344 Prepayments 28 258 Dividend receivable 36,796 32,107 Other receivables 5 1,242 - Taxation-net 12,371 12,124 Security deposit 200 650 Total Assets 6,060,544 6,040,704 LIABILITIES: Fee payable to Investment Adviser 111,370 85,871 Fee payable to Trustee 350 - Fee payable to S.E.C.P. 5,569 482 Payable against purchase of investments 23,145 104,839 Accrued expenses 386 21,377 Dividend 6 36,994 26,704 Total Liabilities 177,814 239,273 Net assets 5,882,730 5,801,431 CAPITAL AND RESERVES: Capital 7 2,841,250 2,841,250 Premium on issue of certificates 984,688 984,688 General reserve 225 225 Unappropriated profit 2,056,567 1,975,268 Total certificate holders' funds 5,882,730 5,801,431 Net Asset Value Per Certificate - Rupees 8 20.70 20.42 Commitment 9 ============================================================================================= ============================================================================================= INCOME STATEMENT FOR THE YEAR ENDED JUNE 30, 2005 ============================================================================================= 2005 2004 Notes Rupees in '000' ============================================================================================= INCOME: Capital gain on sale of investments - net 1,273,835 908,075 Dividend income 311,484 254,700 Unredised (loss)/gain on remeasurement of investments - net 10 (238,834) 86,203 Return on deposit accounts with banks 11,648 8,259 Other - 176 1,358,133 1,257,413 OPERATING EXPENSES: Fee to Investment Adviser 11 111,370 119,979 Fee to Trustee 4,529 - Fee to S.E.C.P. 5,569 482 Auditors' remuneration 12 323 335 Restructuring expenses 11,349 - Financial charges - 5,657 Right issue expenses - 32,459 Other expenses 13 7,194 22,883 140,334 181,795 Profit before taxation 1,21 7,799 1,075,618 Taxation 14 - Profit after taxation 1,217,799 1,075,618 Earnings per certificate (Rupees): 15 With unrealised (loss) / gain 4.29 5.32 Without unrealised (loss) / gain 5.13 4.90 ============================================================================================= =============================================================================================
DISTRIBUTION STATEMENT FOR THE YEAR ENDED JUNE 30, 2005
=============================================================================================
2005 2004
Rupees in '000'
=============================================================================================
Restated unappropriated profit brought forward 1,975,268 1,185,400
Final dividend for the year ended June 30, 2003 - (159,500)
Final dividend for the year ended June 30, 2004
@ 25% (Rs 2.5 per certificate) (710,312) -
Profit after taxation for the year 1,217,799 1,075,618
Interim dividend @ 15% (Rs 1.5/- per certificate) (426,188) (126,250)
Distributed on February 15, 2005
(2004 @ 10% - Re 1- per certificate)
(Distributed on December 20, 2004)
Unappropriated profit carried forward 2,056,567 1,975,268
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STATEMENT OF MOVEMENTS IN NET ASSETS / RESERVES AS AT JUNE 30, 2005
=============================================================================================
2005 2004
Rupees
=============================================================================================
Net assets value per certificate at the beginning of the year 20.42 19.90
MOVEMENTS IN NET ASSETS VALUE PER CERTIFICATE FROM OPERATIONS:
Capital gain on sale of investments - net 4.48 3.20
Dividend income 1.10 0.90
Unrealised (loss)/gain on remeasurement of investments - net (0.84) 0.30
Return on deposit accounts with banks 0.03 0.02
4.77 4.42
Operating expenses (0.49) (0.64)
Net increase in net assets value per certificate from operations 4.28 3.78
24.70 23.68
MOVEMENTS IN NET ASSETS VALUE PER CERTIFICATE FROM FINANCING:
Dividend paid (4.00) (0.44)
Effect of issue of certificates during the year - (2.82)
Net decrease in net assets value per certificate from financing (4.00) (3.26)
Net asset value per certificate at the end of the year 20.70 20.42
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CASH FLOW STATEMENT FOR THE YEAR ENDED JUNE 30, 2005
=============================================================================================
2005 2004
Rupees in '000'
=============================================================================================
CASH FLOWS FROM OPERATING ACTIVITIES:
Profit before taxation 1,217,799 1,075,618
ADJUSTMENTS FOR:
Dividend income (311,484) (254,700)
Unrealised loss/(gain) on remeasurement of investments - net 238,834 (86,203)
Capital gain on sale of investments - net (1,273,835) (908,075)
Operating cash out flows before working capital changes (128,686) (173,360)
INCREASE / DECREASE IN ASSETS / LIABILITIES:
Investments - net 1,317,926 (2,289,791)
Receivable against sale of investments (24,800) (239,344)
Prepayments 230 118
Other receivables (1,242) --
Security deposit 450 250
Fee payable to Investment Adviser 25,499 57,293
Fee payable to Trustee 350 -
Fee payable to S.E.C.P 5,087 -
Payable against purchase of investments (81,694) 104,839
Accrued expenses (20,991) 21,154
Cash generated from / (used in) operations 1,092,129 (2,518,841)
Dividend received 306,795 246,303
Tax paid (247) (549)
Net cash generated from / (used in) operating activities 1,398,677 (2,273,087)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issue of right certificates - 2,563,438
Dividend paid (1,126,210) (277,466)
Net cash (used in) / generated from financing activities (1,126,210) 2,285,972
Net increase in cash and cash equivalents 272,467 12,885
Bank balances at the beginning of the year 128,467 115,582
Bank balances at the end of the year 400,934 128,467
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================================================================================================================================================= STATEMENT OF MOVEMENT IN EQUITY AND RESERVES FOR THE YEAR ENDED JUNE 30, 2005 ================================================================================================================================================= Capital Reserve Revenue Reserves Issued, Premium Reserve General Unappropriated Total subscribed on issue for issue Reserve profit and paid up of of bonus capital certificates certificates Notes Rupees in '000' ================================================================================================================================================= Previously reported balance as at June 30, 2003 1,150,000 - 112,500 225 1,025,900 2,288,625 Effect of change in accounting policy 6.1 Final dividend for the year ended June 30, 2003 declared subsequent to year end - - - - 159,500 159,500 Restated balance as at June 30, 2003 1,150,000 - 112,500 225 1,185,400 2,448,125 Final dividend for the year ended June 30, 2003 - - - - (159,500) (159,500) Issue of certificates 1,691,250 984,688 (112,500) - - 2,563,438 Profit for the year - - - - 1,075,618 1,075,618 Interim dividend @ 10% (Re 1/- per certificate) - - - - (126,250) (126,250) Balance as at June 30, 2004 2,841,250 984,688 - 225 1,975,268 5,801,431 Previously reported balance as at June 30, 2004 2,841,250 984,688 - 225 1,264,959 5,091,119 Effect of change in accounting policy 6.1 Final dividend for the year ended June 30, 2004 declared subsequent to year end - - - - 710,312 710,312 Restated balance as at June 30, 2004 2,841,250 984,688 - 225 1,975,268 5,801,431 Final dividend for the year ended June 30, 2004 - - - - (710,312) (710,312) Profit for the year - - - - 1,217,799 1,217,799 Interim dividend @ 15% (Rs 15/- per certificate - - - - (426,188) (426,188) Balance as at June 30, 2005 2,841,250 984,688 - 225 2,056,567 5,882,730 =================================================================================================================================================NOTES TO THE FINANCIAL STATEMENTS - JUNE 30, 2005 1. STATUS AND NATURE OF BUSINESS PICIC Investment Fund (Formerly ICP Mutual Funds Lot 'B') is a closed end scheme. The Registered office of the Fund is situated at Karachi, Pakistan. The certificates of the Fund are listed on all Stock Exchanges of Pakistan. Principal business of the Fund is to invest in listed equity securities with an objective to generate capital growth. In accordance with the provisions of the scheme of amalgamation all the Funds of ICP Mutual Funds Lot 'B' (consisting of Second, Fifth, Sixth, Seventh, Ninth, Tenth, Thirteenth, Fourteenth, Sixteenth, Seventeenth, Eighteenth, Twenty Second and Twenty Fourth ICP Mutual Funds) were consolidated into a fund named PICIC Investment Fund (Fund). The effective date of amalgamation is June 7, 2004. The Fund is being managed by PICIC Asset Management Company Limited which is the Investment Adviser. Central Depository Company of Pakistan Limited is the trustee of the Fund. 2. STATEMENT OF COMPLIANCE These financial statements have been prepared in accordance with the requirements of the Companies Ordinance, 1984 (The Ordinance), the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (The Rules), directives issued by the Securities and Exchange Commission of Pakistan (SECP) and the approved accounting standards as applicable in Pakistan. Approved Accounting Standards comprise of such International Accounting Standards (IAS) as are notified under the provisions of the Ordinance. Wherever, the requirements of the Ordinance, the Rules or directives issued by SECP differ with the requirements of these standards, the requirements of the Ordinance, the Rules and the said directives take precedence. During the year, the SECP substituted the Fourth Schedule to the Ordinance which is effective from financial year ending on or after July 5, 2004. This has resulted in the change in accounting policy pertaining to recognition of dividends declared subsequent to the year end (note 6.1). 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies adopted in the preparation of these financial statements are set out below: 3.1. ACCOUNTING CONVENTION The financial statements are prepared under the historical cost convention, except for investments which are started at fair value. 3.2. INVESTMENTS The Fund classifies its investments as 'held for trading'. These are initially measured at cost (which includes transaction cost associated with the investments and capital value tax). Subsequently, each individual security is remeasured to fair value. Fair values for quoted equity instruments are based on quoted bid price of the Stock Exchange ruling at the balance sheet date. Gain and losses arising on remeasurement of investments to fair value are recognised in the income statement for the period in which it arises. All regular purchases / sales of investments are recognised on the trade date i.e. the date that the Fund commits to purchase / sell the asset. Purchases or sales of investment require delivery of securities within three days after the transaction date as required by stock exchange regulations. 3.3. DERIVATIVES Derivative instruments held by the Fund generally comprise of un paid right letters. These are initially recognised at cost and are subsequently remeasured at their fair value. The fair value of a derivative is based on quoted bid price of the Stock Exchange ruling at the balance sheet date. 3.4. TAXATION Charge for current taxation is based on taxable income at the current rates for taxation after taking into account tax credits available, if any. 3.5. REVENUE RECOGNITION Capital gains (losses) arising on sale of investments are included in the income statement in the period in which they arise. Dividend income is recognised on the date of book closure of the investee company. Profit on bank deposit is recognised on accrual basis. 3.6. EXPENSES Expenses are accounted for on accrual basis and are charged to income statement. Expenses arising on the disposal of investments are deducted from the disposal proceeds. 3.7. OFFSETTING OF FINANCIAL INSTRUMENTS Financial assets and liabilities are offset and the net amount reported in the statement of assets and liabilities when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on the net basis, or realise the asset and settle liability simultaneously. 3.8. FINANCIAL ASSETS AND FINANCIAL LIABILITIES Financial assets carried on the statement of assets and liabilities include bank balances, receivable against sale of marketable securities, investment in marketable securities classified as 'held for trading', dividend and profit receivable. Financial liabilities carried on the statement of assets and liabilities include remuneration payable to the Investment adviser, payable against purchase of marketable securities, accrued expenses and other liabilities, proposed and unclaimed dividend. At the time of initial recognition, all financial assets and financial liabilities are measured at cost, which is the fair value of the consideration given or received for it. Transaction costs are included in the initial measurement of all financial assets and financial liabilities except for transaction costs that may be incurred on disposal. The particular recognition method adopted for measurement of financial assets and liabilities subsequent to initial recognition is disclosed in the individual policy statement associated with each item. 3.9. TRANSACTIONS WITH CONNECTED PERSON / RELATED PARTY Connected person / related party transactions are stated at arm's length prices based on the method prescribed in the Companies Ordinance, 1984. 4. INVESTMENTS - HELD FOR TRADING Unless stated otherwise, the holding are in the Ordinary shares / certificates of Rs 10/- each. ==================================================================================================================================================================================================================
NAME OF INVESTEE NUMBER OF SHARES/ CERTIFICATES VALUE OF SHARES/ CERTIFICATES PERCENTAGE IN RELATION TO
Opening Purchases Bonus / Sales Closing Cost Carrying Market Net Assets investee Total
Rights value value of the Fund paid up Investment
capital
Notes (Rupees in '000')
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MODARABAS:
Equity Modaraba 1st. 453,000 4,804,500 - 57,500 5,200,000 107,418 106,762 70,460 1.20% 9.92% 1.32%
Modaraba Al-Mali - 319,500 - - 319,500 3,213 3,213 2,045 0.03% 1.75% 0.04%
Standard Chartered Modaraba 197,000 933,000 - - 1,130,000 37,956 38,611 27,120 0.46% 3.02% 0.51%
LEASING COMPANIES:
Askari Leasing Limited 729,500 - - 729,500 - - - - - - -
Crescent Leasing Corporation Limited 74,000 - 9,250 83,250 - - - - - - -
First Dawood Investment Bank Limited 464,500 - 23,225 487,725 - - - - - - -
Orix Leasing Limited 562,750 437,250 - - 1,000,000 36,483 35,641 29,700 0.50% 1.66% 0.56%
INVESTMENT BANKS/COS./SECURITIES:
Arif Habib Securities Limited 36,300 50 54,450 90,800 - - - - - - -
Atlas Investment Bank Limited 269,000 259,500 105,700 101,500 532,700 13,680 13,579 13,477 0.23% 1.26% 0.25%
Crescent Standard Investment Bank (1st Std. Bank) - 2,338,000 - 1,905,500 432,500 4,711 4,711 6,488 0.11% 0.34% 0.12%
Escorts Investment Bank Limited 902,000 - - 12,000 890,000 14,108 13,261 9,434 0.16% 2.97% 0.18%
Jahangir Siddiqui And Company Limited 81,000 46,700 - 127,700 - - - - - - -
Orix Investment Bank Limited 796,000 587,500 83,750 115,750 1,351,500 31,049 30,872 29,057 0.49% 4.10% 0.54%
Pakistan Industrial Credit And Investment - 96,000 - 96,000 - - - - - - -
CORPORATION LIMITED
COMMERCIAL BANKS:
Askari Commercial Bank Limited 1,915,077 8,148,700 - 10,063,777 - - - - - - -
Bank Al-Falah Limited - 4,941,750 60,250 3,552,150 1.449,850 74,019 74,019 59,081 1.00% 0.48% 1.11%
Bank Of Punjab Limited 424,000 14,645,500 219,000 13,688,500 1,600,000 132,648 132,648 134,000 2.28% 0.89% 2.51%
Bolan Bank Limited 75,000 62,500 - 137,500 - - - - - - -
Crescent Commercial Bank (Mashreq Bank) 774,000 1,504,400 - 1,312,700 965,700 13,465 13,416 9,995 0.1 7% 0.44% 0.19%
Trust Commercial Bank Limited 450,000 10,000 - - - - - - - - -
Faysal Bank Limited 2,903,870 - - 2,903,870 - - - - - - -
Meezan Bank Limited 319,500 - - 319,500 - - - - - - -
Muslim Commercial Bank Limited 820,028 9,247,600 - 10,067,628 - - - - - - -
National Bank Of Pakistan Limited 426,980 21,812,820 105,380 21,344,900 1,000,280 103,373 103,373 107,980 1.84% 0.17% 2.02%
Ndlc-Ific Bank Limited 725,500 169,000 - 894,500 - - - - - - -
Picic Commercial Bank Limited 478,200 754,500 - 1,232, 700 - - - - - - -
Prime Commercial Bank Limited 250,000 406,000 - 656,000 - - - - - - -
Soneri Bank Limited 291,668 - - 291,668 - - - - - - -
Union Bank Limited 285,950 5,228,000 273,395 4,586,845 1,200,500 52,364 52,364 47,420 0.81% 0.49% 0.89%
INSURANCE:
Adamjee Insurance Company Limited 279,500 3,150,137 2,613,537 816,100 63,007 63,007 54,475 0.93% 0.99% 1.02%
American Life Insurance Company Limited 300,000 - - 300,000 - - - - - - -
Pakistan Re-Insurance Limited 5,000 764,900 - 119,400 650,500 40,784 40,789 33,533 0.57% 1.45% 0.63%
Premier Insurance Company Limited 161,500 25,000 - 186,500 - - - - - - -
TEXTILE SPINNING:
Gadoon Textile Limited 157,000 76,100 - 233,100 - - - - - - -
Umer Fabrics Limited 362,700 627,500 - 426,200 - - - - - - -
TEXTILE WEAVING:
Kohinoor Weaving Mills Limited 296.500 151,000 - 447,500 - - - - - - -
TEXTILE COMPOSITE:
Azgard Nine (Legler-Nafees Denim) Limited 129,000 207,500 - 336,500 - - - - - - -
Crescent Textile Limited 65,500 39,500 - 105,000 - - - - - - -
Dawood Lawrencepur Limited - 33,912 - 33,912 - - - - - - -
Kohinoor Industries Limited - 348,500 - 348,500 - - - - - - -
Kohinoor Textile Limited 452,700 1,058,100 50,000 1,260,800 300,000 13,376 13,292 11,400 0.19% 0.31% 0.21%
NISHA TMILL Slimited 714,411 11,008,836 - 10,823,247 900,000 81,111 81,111 68,400 1.16% 0.62% 1.28%
Nishat(Chunian) Limited 744,600 497,300 219,300 961,200 500,000 36,736 38,013 47,550 0.81% 0.73% 0.89%
Saphire Fibres Limited 167,000 - - 167,000 - - - - - - -
Suraj Cotton Mills Limited 515,500 - - 515.500 - - - - - - -
SYNTHETIC & RAYON:
Dewan Salman Fiber Limited 83,500 782,000 29,362 894,862 - - - - - - -
Dilon Limited 20,100 - - 20,100 - - - - - - -
Ibrahim Fibres Limited 24,616 207,500 - 232,116 - - - - - - -
Pakistan Synthetics Limited 288,000 102,500 - 102,500 288,000 3,424 4,997 2,938 0.05% 0.51% 0.05%
SUGAR & ALLIED INDUSTRIES:
Sakrand Sugar Limited - 564,500 - 564,500 - - - - - - -
Shahtaj Sugar Limited 900,749 14,900 - - 915,649 12,705 67,378 59,426 1.01% 7.62% 1.11%
Shakerganj Sugar Limited 453,121 - - 453,121 - - - - - - -
CEMENT:
Attock Cement Limited 284,500 - - 284,500 - - - - - - -
CHAKWAL CEMENT Limited - 2,010,500 - 2,010,500 - - - - - - -
Cherat Cement Company Limited 134,762 18,838 65 153,665 - - - - - - -
D.G.Khan Cement Limited 937,500 4,041,900 65,240 5,044,640 - - - - - - -
Fauji Cement Company Limited 499,000 2,016,500 - 2,515,500 - - - - - - -
Gharibwal Cement Limited 200,000 321,000 - 521,000 - - - - - - -
Lucky Cement Limited 1,189,000 7,637,500 93,900 8.1 70,400 750,000 38,668 38,668 34,125 0.58% 0.28% 0.64%
Maple Leaf Cement Limited 537,500 5,977,250 - 6,062,500 452,250 11,104 11,099 9,859 0.17% 0.17% 0.18%
Maple Leaf Cement Limited - Preference - 480,150 - - 480,150 4,802 4,802 4,345 007% 0.89% 0.08�A
Dewan Cement Limited
(Formerly Pak Land Cement Limited) - 2,521,500 - 2,521,500 - - - - - - -
Pioneer Cement Limited 1,522,000 2,608,500 - 4,130,500 - - - - - - -
Dewan Hattar Cement Limited
(Formerly Saadi Cement Limited) 356,500 2,219,500 - 2,576,000 - - - - - - -
REFINERY:
Attock Refinery Limited 170,900 673,400 - 844,300 - - - - - - -
Bosicor Pakistan Limited 480,000 907,500 - 1,387,500 - - - - - - -
National Refinery Limited 4.2 803,000 369,700 - 394,900 777,800 114,566 166,392 246,018 4.18% 1.17% 4,60%
POWER GENERATION & DISTRIBUTION:
Hub Power Company Limited 13,781,500 15,376,500 - 16,858,000 12,300,000 411,319 403,886 324,720 5.52% 1.06% 6.08%
Karachi Electric Supply Corporatoin Limited - 1,500,000 - 1,500,000 - - - - - - -
Kohinoor Energy Limited 594,000 216,000 - - 810,000 24,814 27,32521 060 0,36% 0.48% 0.39%
Kohinoor Power Company Limited 952,500 - - 952,500 - - - - - - -
Kot Addu Power Company Limited - 875,000 - 175,000 700,000 29,332 29,332 26,425 0.45% 0.08% 0.49%
Sitara Energy Limited 488,500 174,000 - - 662,500 22,383 21,399 10,931 0.19% 3.47% 0.20%
Southern Electric Power Limited 3,739,500 1,396,000 513,550 4,316,500 1,332,550 19,702 17,601 9,261 0.16% 0.97% 0.17%
OIL & GAS MARKETING COMPANIES:
Pakistan Petroleum Limited - 15,983,400 - 14,649,300 1,334,100 343,628 343,628 286,965 4,88% 0.19% 5.37%
Pakistan State Oil Limited 4.1 4,529,325 9,601,000 - 10,366,454 3,763,871 1,221,909 1,242,346 1,452,854 2470% 2.19% 27.18%
Shell (Pakistan) Limited 54,900 384,900 - 156,300 283,500 151,793 151793 157,031 2.67% 0.81% 2.94%
Sui Northern Gas Pipe Line Limited 4.1 1,959,964 15,512,404 - 14,950,864 2,521504 167,322 167,717 154,568 2.63% 0.51% 2.89'
Sui Southern Gas Company Limited 4,422,110 6,544,000 - 10,416,110 550,000 13,513 13,513 12,733 0.22% 0.08% 0.24
OIL & GAS EXPLORATION COMPANIES:
Mari Gas Company Limited 47,300 - - 47,300 - - - - - -
Oil & Gas Development Company Limited 7,501,595 46,469,105 - 51,820,900 2,149,800 297,761 297,761 226,374 3.85% 0.05% 4.24
Pakistan Oil Fields Limited 286,400 9,253,200 - 7,789,600 1,750,000 546,507 546,507 492,450 8.37% 1 .33% 9.21
ENGINEERING:
Crescent Steel And Allied Limited 234,100 - 22,340 256,440 - - - - - - --
Huffaz Seamless Pipes Limited - 241,000 - - 241,000 9,505 9,505 8,387 0.14% 198% 0.1
K.S.B. Pumps Limited 33,000 - - 33,000 - - - - - - -
AUTOMOBILE ASSEMBLER:
Al-Ghazi Tractors Limited 46,700 - - 46,700 - - - - - - -
Dewan Farooque Motors Limited 698,000 1,999,500 850 2,698,350 - - - - - - -
Honda Atlas Cars Limited - 61,900 - 61,900 - - - - - - -
Ndus Motors Limited - 57,600 - 57,600 - - - - - - -
Pak Suzuki Motors Company Limited 100,000 - - 100,000 - - - - - - -
AUTOMOBILE PARTS & ACCESSORIES:
Agriauto Industries Limited - 63,500 - 63,500 - - - - - - -
Allwin Engineering Limited 100,000 - - 100,000 - - - - - - -
Atlas Bauery Limited 177,261 1,800 54,224 233,285 - - - - - - -
General Tyre & Rubber Co Limited 384,000 602,500 - 42,000 944,500 41,652 41,197 30,366 0.52% 1.58% 0.57%
Pak Elektron Limited - 388,000 - 388,000 - - - - - - -
CABLE & ELECTRICAL GOODS:
Pakistan International Airlines Corporation 1,491,000 5,231,500 - 6,722,500 - - - - - - -
TRANSPORT:
Pakistan International Container Limited 133,000 1,749,083 - 1,882,083 - - - - - - -
LIMITED 'A'
Pakistan International Container Limited - Preference - 130,625 - - 130,625 1,306 1,306 980 0.02% 0.73% 0.02%
Pakistan National Shipping Corporation Limited - 544,400 - 61,100 483,300 43,277 43,277 50,070 0.85% 0.40% 0.94%
Callmate Telips Limited 704,000 1,680,500 84,675 1,969,175 500,000 14,170 14,099 19,500 0.33% 0.99% 0.36%
TECHNOLOGY & COMMUNICATION:
Pakistan Telecommunication
Limited 'A' 8,885,500 53,218,000 - 59,103,500 3,000,000 224,513 224,513 197,850 3.36% 0.08% 3.70%
Southern Nemork Limited - 327,500 - 327,500 - - - - - -
Telecard Limited 2,302,000 7,041,500 - 9,343,500 - - - - - -
Trg Pakistan Limited 1,174,500 6,492,000 - 7,166,500 500,000 6,998 7,012 5,050 0.09% 0.25% 0.09%
World Call Communications Limited 637,500 1,660,500 - 498,000 1,800,000 23,565 23,139 18,000 0.31% 1.13% 0.34%
Dawood Hercules Limited 70,432 - - 70,432 - - - - - - -
FERTILISER:
Engro Chemical Limited 883,000 2,947,200 - 3,830,200 - - - - - - -
Fauji Fertilizer Bin Qasim Limited 694,731 13,920,500 - 13,565,231 1,050,000 31,987 31,987 28,245 0.48% 0.11% 0,53%
Fauji Fertilizer Company Limited 4,315,900 9,390,900 1,243,020 11,809.810 3,140,010 367,776 368,287 381,040 6.48% 0.80% 7.13%
Aventis Pharma(Hoechst) Limited 42,500 6,300 - - 48,800 4,246 13,734 9,028 0.15% 0.51% 0.17%
PHARMACEUTICALS:
Glaxosmithkline (Glaxo Wellcome) Limited 50,200 14,700 - 64,900 - - - - - -
Reckitt & Benckiser Pakistan Limited 118,300 - - 118,300 - - - - - -
Searle Pak Limited - 115,000 5,750 120,750 - - - - - - --
Boc Pakistan Limited 144,822 8,600 - 1,100 152,322 16,552 25,334 22,544 0.38% 0.61% 0.42%
CHEMICALS:
ICI Pakistan Limited 1,483,100 1,264,700 - 2,747,800 - - - - - -
Nimir Industr1al Chemical Limited - 3,143,000 - 408,000 2,735,000 14,411 14,411 7,795 0.13% 1.55% 0.15%
Pakistan Pta Limited 2,995,000 11,681,000 - 11,926,000 2,750,000 36,697 37,009 22,000 0.37% 0.18% 0.41%
Sitara Chemical Limited - 64,300 - 64,300 - - - - - - -
PAPER & BOARD:
Century Paper Board Limited 952,100 - - 952,100 - - - - - - -
Cherat Paper Sack Limited 60,100 2,000 - 62,100 - - - - - - -
Packages Limited 1,112,664 700 - 113,900 999,464 19,875 197,895 139,925 2.38% 1.43% 2.62%
LEATHER & TANNERIES:
Service Industries Limited 279,000 - - 279,000 - - - - - - -
Food & Personal Care-Products -
Unilever Pakistan Limited *** 27,212 5,560 - 1,772 31,000 24,392 47,796 43,710 0.74% 0.23% 0.82%
Zulfiqar Industries Limited 5,664 36 - 5,700 - - - - - - -
Miscellaneous - - - - - -
Ecopack Limited - 979,500 - 182,000 797,500 37,026 37,026 39,556 0.67% 5.59% 0.74%
Worldcall Broadband Limited 1,954,000 832,000 - 50,000 2,736,000 33,796 31,450 27,086 0.46% 1.82% 0.51%
SUSPENDED/DELISTED COMPANIES:
Mohib Textile Mills Limited 40,820 - - - 40,820 - - - - - -
Sunshine Cloth Limited 50,000 - - - 50,000 - - - - - -
Number of shares has also increased / decreased due to merger. June 30, 2005 - Rupees in '000' 5,344,829
Ordinary Shares of Rs 5/- each
Ordinary Shares of Rs 50/- each June 30, 2004 - Rupees in '000' 5,627,754
==================================================================================================================================================================================================================4.1. These shares include 3,737,730 shares of Pakistan State Oil Limited and 1.958,304 shares of Sui Northern Gas Pipelines Limited which are frozen/ blocked by an order of the Government of Pakistan (GOP) as the same form part of a strategic shareholding under the control of the GOP.As a result, the Fund is restricted from selling, transferring, encumbering or otherwise disposing of or dealing with any interest in the said shares, including any future bonus / right shares in respect thereof. 4.2. These shares include 777,800 shares of National Refinery Limited which are blocked / frozen by GOP for the reason and subject to the restriction as mentioned above (Refer note 16). 4.3. The exposure limit mentioned in rule 49.3 of the Rules shall not apply to frozen shares as per Article 2.02(a) of Scheme of Arrangement for Amalgamation of the Fund. 5. OTHER RECEIVABLES =============================================================================================
2005 2004
(Rupees in '000')
=============================================================================================
Profit on bank balances 1,100 -
Derivative financial instruments 142 -
1,242 -
=============================================================================================6. DIVIDEND=============================================================================================
2005 2004
Note (Rupees in '000')
=============================================================================================
Unclaimed dividend 36,994 26,704
Proposed final 6.1 - -
36,994 26,704
=============================================================================================6.1.The Fund, effective from current year, has not recognised the final dividend, proposed subsequent to the year end, as a liability to comply with the substituted Fourth Schedule to the Ordinance, as referred to in note 2. Such a change in policy has been accounted for retrospectively and comparative financial statements have been restated in accordance with the recommended benchmark treatment of IAS 8 - "Net Profit or Loss for the Period, Fundamental Errors and Changes in Accounting Policies". Had there been no change, the unappropriated profit and the current liabilities for the year ended June 30, 2005 would have been lower and higher respectively by Rs 568,250,000 (2004: Rs 710,312,500). 6.2. The Board of Directors of investment adviser in its meeting held on July 21, 2005 has approved a final cash dividend for the year ended June 30, 2005 of Rs 2 per certificate i.e. 20%, amounting to Rs 568,250,000. These financial statements do not reflect the appropriation of dividend and dividend payable as explained in note 6.1 above. 7. CAPITAL ==========================================================================================
2005 2004 2005 2004
No of Certificates in '000' Rupees in '000'
==========================================================================================
Issued, subscribed and paid up capital
Fully paid ordinary certificates of
Rs 10 each
272,875 272,875 Issued for cash 2,728,750 2,728,750
11,250 11,250 Issued as bonus certificates 112,500 112,500
284,125 284,125 2,841,250 2,841,250
==========================================================================================The total authorised number of certificates are 284,125,000 (2004: 284,125,000) with a par value of Rs 10 per certificate.PICIC Asset Management Company Limited (PICIC-AMC) held 55,159,172 certificates of Rs 10 each as at June 30, 2005 (June 30, 2004: 49,155,672 certificates). Pakistan Industrial Credit and Investment Corporation Limited (PICIC), an associated company, held 41,882,149 certificates of Rs 10 each as at June 30, 2005 (June 30, 2004: 50,396,944 certificates). 8. NET ASSET VALUE PER CERTIFICATE =============================================================================================
2005 2004
(Rupees in '000')
=============================================================================================
Total net assets - Rupees in thousand 5,882,730 5,801,431
Total certificates in issue - in thousand 284,125 284,125
Net assets value per certificate - Rupees 20.70 20.42
=============================================================================================9. COMMITMENTThe Fund has commitment to sell 777,800 shares of National Refinery Limited (NRL) as per the consent agreement dated October 19, 2004, entered into between the PICIC-AMC and the Privatisation Commission (PC) (Refer note 16). 10. UNREALISED (LOSS)/GAIN ON REMEASUREMENT OF INVESTMENT - NET =============================================================================================
2005 2004
(Rupees in '000')
=============================================================================================
Quoted securities (238,976) 86,203
Derivative financial instruments 142 -
(238,834) 86,203
=============================================================================================11. FEE TO INVESTMENT ADVISERThe fee of Investment Adviser has been determined at the rate of two percent per annum of the average annual net assets of the Fund as at June 30, 2005. 12. AUDITORS' REMUNERATION =========================================================================
2005 2004
M. Yousuf M. Yousuf Taseer, Hadi, Total
Adil Saleem Adil Saleem Khalid
& Co & Co & Co
Rupees in '000'
=========================================================================
Annual audit fee 200 125 - 125
Half yearly review fee 50 85 85 170
Out of pocket expenses 18 20 20 40
Other services 55 - - -
323 230 105 335
=========================================================================13. OTHER EXPENSES=============================================================================================
2005 2004
(Rupees in '000')
=============================================================================================
Printing and stationery 1,093 637
Advertising 84 1,125
CDS charges 3,429 5,486
Legal and professional 491 1,919
Listing fee 370 4,841
Computer expenses - 1,461
Postage 956 2,050
Professional tax 100 725
Stamp duty 117 3,628
Bank charges 22 574
Others 532 437
7,194 22,883
=============================================================================================14. TAXATIONThe Fund is exempt from tax under clause 99 of part 1 of Second Schedule of the Income Tax Ordinance, 2001, subject to the condition that not less than 90% of its accounting income for the year, as reduced by the capital gains whether realised or unrealised, is distributed among its certificate holders. The company is also exempt from the provisions of section 113 (minimum tax) under clause 11 of Part IV of the Second Schedule of the Income Tax Ordinance, 2001. The income tax assessment of the Funds have been finalised up to the Income year 2004, except for the income year 2003, which is still pending. The appeals by the Fund / Income Tax Department with Income Tax Appellate Tribunal (ITAT) relating to assessment years 1991-92 to 1994-95 and 1998-99 have been decided by the Tribunal partly in favour of the Fund. In respect of assessment year 1995-96 and 1996-97, department filed reference application on the rate of dividend to ITAT, which was rejected. In respect of income year 2000-2001, ITAT has vacated the order of Commissioner of Income Tax (Appeals), with direction to assessing officer to pass a speaking order after affording an opportunity to the Fund of being heard. The Fund is confident that the decision in respect of the above will be in its favor, hence provision for any shortfall that may result has not been made in these financial statements. 15. EARNINGS PER CERTIFICATE There is no dilutive effect on earnings per certificate as computed below ======================================================================================================
2005 2004
======================================================================================================
Net profit after taxation (with unrealised gain)- Rupees in thousand 1,217,799 1,075,618
Net profit after taxation (without unrealised gain)- Rupees in thousand 1,456,633 989,415
Weighted average number of certificates - in thousand 284,125 202,077
Basic earnings per certificate (with unrealised gain)- Rupees 4.29 5.32
Basic earnings per certificate (without unrealised gain)- Rupees 5.13 4.90
======================================================================================================16. SUBSEQUENT EVENTThe Fund carries investment in 777,800 shares of National Refinery Limited (NRL), as detailed in note 4.2 to the financial statements. On October 19, 2004, PICIC Asset Management Company Limited (PICIC-AMC) who manages the Fund, entered into a Consent Agreement with the Privatisation Commission (PC) wherein PICICAMC irrevocably authorised PC to act in respect of the sale of NRL shares held by the Fund when selling the shares of NRL to a Strategic Investor on the terms and conditions as it deemed fit. The PC concluded a privatisation deal of NRL with highest bidder and issued a Letter of Acceptance (LOA) dated June 07, 2005 to the successful bidder at a bid price of Rs 4831/- per share. The PC retained the unconditional right to forfeit LOA if successful bidder fails to pay the bid price or any part thereof in terms of the instructions to the bidder or fails to execute the Share Purchase Agreement (SPA) within the stipulated time. Out of total sale price 25% was paid on June 20, 2005 and remaining 75% on July 2, 2005. However, SPA between PC and successful bidder was executed on July 07, 2005 thereby transfer of strategic stake in NRL to the buyer in terms of the SPA and completing all formalities and on the same day the PC convened a meeting of authorised representatives of the buyer and NRL, where the management control was transferred by way of induction of majority directors of the buyer in the Board of Directors of NRL. 17. TRANSACTIONS WITH CONNECTED PERSONS/RELATED PARTIES Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operational decisions. The Fund has been managed by PICIC-AMC an investment adviser from June 28, 2004 before that it was managed by PICIC Investment adviser provides management, secretarial, registrar and administrative services to the Fund. =============================================================================================
2005 2004
(Rupees in '000')
=============================================================================================
PICIC ASSET MANAGEMENT COMPANY LIMITED:
Remuneration as Investment Adviser 111,370 968
PAKISTAN INDUSTRIAL CREDIT AND INVESTMENT CORPORATION LIMITED:
Remuneration as Investment Adviser - 119,011
Remuneration for ancillary services - 3,702
Underwriting commission - 1 7,373
Financial charges - 5,657
=============================================================================================18. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURESRisk Management The Fund primarily invests in listed equity securities. These investments are subject to varying natures of risk. These risk emanate from various factors that include, but are not limited to following: Yield / Interest Rate Risk Yield risk is the risk of decline in earnings due to adverse movements of the yield curve. Interest rate risk is the risk that the value of the financial instruments will fluctuate due to changes in the market interest rates. Sensitivity to interest/ markup rate risk arises from mismatches or gaps in the amounts of interest/ mark-up based assets and liabilities that mature or reprice in a given period. The Fund is not exposed to yield/ interest rate risk as there are no material interest bearing financial assets and liabilities. Market Risk Market risk is the risk that the value of financial instruments may fluctuate as a result of changes in market price of securities due to change in market sentiments, speculative activities, supply and demand of securities and liquidity in the market. The investment adviser manages market risk by monitoring exposure on marketable securities by following internal risk management policies and investment guidelines as approved by the Investment Committee and regulations laid down by the Securities and Exchange Commission of Pakistan. Credit Risk Management Credit risk arises from the inability of the counter parties to fulfill their obligations. All investing transactions are settled/ paid for upon delivery using approved brokers. The risk of default is considered minimial since delivery of securities sold is only made once the trustee has received payment. On a purchase, payment is made once the securities have been received by the trustee. If either party fails to meet the obligation, the trade will fail. The Fund enters into transactions with diverse credit worthy counter parties thereby mitigating any significant concentration of credit risk. Liquidity Risk Liquidity risk is the risk that an enterprise will encounter difficulty in raising funds to meet commitments associated with financial instruments. The Fund is not materially exposed to liquidity risk as all obligations/commitments of the Fund are short term in nature and are restricted to the extent of available liquidity and all assets of the Fund are readily disposable in the market. Fair Value of Financial Instruments Investments categorised as 'held for trading' are carried at their fair value. The management is of the view that the fair market value of most of the remaining financial assets and financial liabilities are not significantly different from their carrying values. 19. PERFORMANCE TABLE =========================================================================================
2005 2004 2003
=========================================================================================
Net assets - Rupees in thousand 5,882,730 5,801,431 2,288,625
Net assets value per certificate - Rupees 20.70 20.42 19.90
Profit after tax - Rupees in thousand 1,217,799 1,075,618 1,198,992
Earnings per certificate - Rupees 4.29 5.32 9.27
Dividend distribution - Rupees in thousand 426,188 836,562 159,500
Bonus distribution - Rupees in thousand - - 11 2,500
=========================================================================================In view of the Scheme of Amalgamation of the Funds of ICP Mutual Funds Lot 'B' in last year, the performance table has been disclosed from the earliest date of presentation for which figures have been compiled.20. DATE OF AUTHORISATION FOR ISSUE These financial statements were authorised for issue on July 21, 2005 by the Board of Directors of the Investment Adviser. 21. NUMBER OF EMPLOYEES The Fund has no employee as it is managed by the Investment Adviser. 22. CORRESPONDING FIGURES The significant prior year's figures which have been reclassified consequent upon certain changes in current year's presentation are as follows: ==========================================================================================
Reclassification
Note From To Nature Rupees in
'000'
==========================================================================================
Bank balances- Receivable against Amount receivable against 239,344
deposit account sale of investment sale of investment
Bank balances- Payable against Amount payable against 104,839
deposit account purchase of investment purchase of investment
Accrued expenses Fee payable to SECP Amount payable to SEOP 482
11 Fee to trustee Other expenses CDS charges 5,486
==========================================================================================23. FIGURESFigures have been rounded off to the nearest thousand rupees. |