Mr. Iqbal Alimohamed, Director Mf. Aqeel Karim Dhedhi ... · Mr. Ahsan Raza Durrani, Chief Executive Officer Mr. Hassan Mohamed Mahmood, Director Mr. Mohammad Khan Hoti, Director

.~:)OLLW:cJOe

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Management Company

FaysalAssetManagementLimited.

Board of Directors of the Management Company

Mr.FarookBengali,ChairmanMr.AhsanRazaDurrani,ChiefExecutiveOfficerMr.HassanMohamedMahmood,DirectorMr.MohammadKhanHoti,DirectorMr.Ajaz Rahim,DirectorMr.FerazRizvi,DirectorMr. IqbalAlimohamed,DirectorMf.AqeelKarimDhedhi,Director

CFOoftheManagementCompanyMr.MuhammadShakeelMusani

CompanySecretaryoftheManagementCompany

Mr.M.SiddiqueMemon

Audit Committee

Mr. IqbalAlimohamed,ChairmanMr.MohammadKhanHoti,MemberMr.Ajaz Rahim,MemberMr.FerazRizvi,Member

'"

.!

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Ir

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.

FBGFendeavorstoprovideinvestors

withan opportunitytoearnincomeand

long-termcapitalappreciationby

investingin a largepooloffunds

representingequity/ nonequity

investmentsina broadrange

ofsectorsandfinancial

instruments.

Trustee

MuslimCommercialFinancialServices(Pvt.)Limited9th Floor,SheikhSultanTrustBuildingBeaumontRoadKarachi.

BankerstotheFund

. FaysalBankLimited.MuslimCommercialBankLimited

Auditors

FordRhodesSidatHyder&Co.,CharteredAccountants

legal Advisor

Bawa~fiYandPartners404,4 floorBeaumontPlazaBeaumontRoadKarachi

Registrars

GangjeesRegistrarServices(Pvt) Limited.Room# 506,5th Floor,CliftonCenter,KehkashanClifton- Karachi.

Distributors.FaysalAssetManagementLimited.FaysalBankLimited.AKDSecuritiesPrivateLtd..PICICCommercialBankLimited.InvestCapital&Securities.BolanBankLimited

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Quarterly & Nine Months Accounts March 2005 (Un-audited)FAYSALBALANCED.GROWTH FUND

REPORT OF THE DIRECTORS OF THE MANAGEMENT COMPANY

The Board of Directors of the Faysal Asset Management Limited, the management &mpany

of the Faysal Balanced Growth Fund (FBGF), is pleased to present accounts of FBGF for the

quarter and nine months period ended March 31, 2005. Since the Fund was launched in April

2004, no comparative data for the relevant quarter and nine months period of last year has

been published.

PERFORMANCE REVIEW

Quarter

ended

March

2005

Quarter

ended

December

Nine Months

ended ~March'" i

2004 2005

The profit after tax for the quarter amounted to Rs. 179 million showing an increase of 64% over

last quarter profit of Rs. 109 million. This significant surge is attributable to the increased net

realized and unrealized capital gains of Rs. 100 million earned during the quarter, of which

Rs. 19 million have already been distributed to the unit holders at the time of redemption.

The profit after tax for the nine months period ended March 31, 2005 amounted to Rs 307.23

million. Major contributors to income included Capital Gains (Rs. 424.76 million), Income from

Carry Over Transactions (COT) (Rs. 82.36 million) and Dividends (Rs. 28.53 million).

The operating expenses of the Fund have slightly increased mainly owing to an increase41 j"

Rs. 3 million in the brokerage and settlement charges due to an increase in trading activities.

The cumulative operating expenses for the nine months period of Rs. 56.47 million comprised

- mainly of remuneration of the Management Company of Rs. 32.72 million and brokerage and

settlement charges of Rs. 19.35 million.

The Fund has increased its equity allocation to 57% during the period. Being a balanced fund,

the Fund's NAV does not directly correlate to the KSE Index as the results are reflected below:

,~'i:',;~~~*,S~k!~~c~\~Z~1;);j;,,;~iij:'il~~!f~~~"'-i,,;~~;r::;:t:i1:iI<I;!ilJ!ltf:jf:riIi'i~J;.:~11~fc'i~if.!tiiNt~;<'>{ij~tt';'f~:KSE-100 Index

FBGF NAV7,770.52

116.46

5,280.96

98.43

47.14%

18.32%

4


INVESTMENTS

As of 31 December, 2005, the total assets of the Fund were invested as below:

Cash& Cash

EquivalentsAdvancefor 14%

listedsecurities

8%

. Fixed Income20%

COT5%

ACKNOWLEDGEMENT

Equity53%

The Board of Directors of the Management Company thanks the Securities and ExchangeCommission of Pakistan for its valuable support, assistance and guidance. The Board alsothanks the employees of the Management Company and the Trustee for their dedication andhard word and the unit holders for their confidence in the Management.

Karachi: April 14, 2005

T (-1

For and on behalf of the Board

Ahsan Raza DurraniChief Executive Officer

'"

5

- Rupeesinmillions-iTotal Income 199.656 123.485 360.419

Operating Expenses 20.920 17.538 56.473 I- - IProfit Before Tax 178.736 105.947 303.943 q

Taxation - (3.280) (3.280)-Profit After Tax 178.736 109.227 307.226

Earnings per Unit -Rs. 10:68 ---s:iO -m

Quarter/~ & Nine Months Accounts March 2005 (Un-audited)FAYSALBALANCED ..GROWTHFUN0

STATEMENT OF ASSETS AND LIABILITIESAS AT MARCH 31, 2005

Note

March 31,2005

(Unaudited)Rupees

June 30,2004

(Audited)RupeesAssets

InvestmentsAdvanceagainstpurchaseofTermFinance

CertificatesAdvanceagainstpurchaseofPreferenceSharesAdvanceagainstpurchaseofOrdinarySharesReceivablesPreliminaryexpensesandfloatationcostsBankbalances

Totalassets

4 1,560,596,524

100,000,00050,000,00015,000,000

139,080,8352,079,453

88,984,2491,955,741,061

482,224,800

147,500,000

56

1,259,661,4541&\2,454,795'" I

114,734,050'2,006,575,099

Liabilities

Remunerationpayableto the ManagementCompanyRemunerationpayableto theTrusteeCreditors,accruedand other liabilities

Total liabilities

Commitments 7

Netassets

Unitholders' funds (as perstatementattached)

Numberof Units in issue

Net asset value per unit

The annexednotesform an integralpartof these financialstatements.

For Faysal Asset Management Limited(Management Company)


Farook BengaiiChairman

For Muslim Commercial Financial Services (Private) Limited(Trustee)

Abdul Razzak H. AdamChief Executive


..INCOME STATEMENT (UNAUDITED)FOR THE QUARTER AND PERIOD ENDED MARCH 31, 2005

Note

Quarter Nine'MonthsJan-March 2005 July -March 2005

Rupees RupeesIncome

Netgainon saleof held-far-tradinginvestmentsIncomefromreverserepurchasetransactionsof listedsecuritiesProfitearnedon TermFinanceCertificatesDividendincome

_etum on bankbalancesO

. .lementof incomeandcapitalgainsin pricesof unitssold lessthose in unitsredeemed

Unrealizedlosson held-far-tradinginvestments

369,811,31626,133,2829,352,2166,420,000

607,865

120.484.912)391,839,767192183.428199,656,339

424,755,15382,364,24018,556,41328,525,0801,787,302

4.5

TExpenses

Remunerationof the ManagementCompanyRemunerationof the Trustee

BrokerageandsettlementchargesBankchargesAuditors'remunerationSECPAnnualfeeListingfeeAmortizationof preliminaryexpensesandfloatationcosts

32,715,6502,204,651

19,352,68029,975

307,8711,453,962

33,000375,342

56.473.131303,946,27113,279.651)

307,225,922

18.36

I...

10,967,286733,989

8,482,6446,900

119,033487,413

123.28820,920.553

178,735,786ProfitbeforetaxProvisionfortaxationProfitaftertax 178,735,786

10.68ProfitperUnit

Theannexednotesform an integralpart of thesefinancialstatements.

f)1Ti -

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For Muslim Com';'ercial Financial Services (Private) Limited(Trustee)

Farook BengaliChainman


6

3,997,478 3,714,774262,589 247,282

3,260,353 4,316,6247,520,420 8,278,680

1,948,220,641 1,998,296,419

1,948,220,641 1,998,296,419

16,729,119 20,302,136

116.46 98.43

Quarterly, & Nine Months Accounts March 2005 (Un-audited)

FAYSALBALANCED ..GROWTH FUN0

DISTRIBUTION STATEMENT(UNAUDITED)FOR THE PERIOD ENDED MARCH 31, 2005

,"2005

Rupees

Accumulated loss as at July 1, 2004 (31,917,211)

Profit for the period ended March 31,2005 307,225,922

Accumulated income carried forward 275,308,711

The annexed notes form an integral part of these financial statements.

tJ"

4;,

-:For Faysal Asset Management Limited

(Management Company)


Farook BengaliChairman


Abdul Razzak H, AdamChief Executive

8


STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUNDS (UNAUDITED)FOR THE PERIOD ENDED MARCH 31, 2005

July. March2005

Rupees

Net assets as the beginning of the period. July 01, 2004 1,998,296,419

Amount received on issue of 288,860.8688 Units

Amount paid on redemption of 3,861 ,877.8688 Units31,667,422

(409,622,321 )

(377,954,899)

20,653,199

~

J

Element of income and capital gains in prices of units sold

,.ess those in units redeemedNet profit for the period

Net assets as at the end of the period

307,225,922

1,948,220,641

Net assets as at the end of the period. March 31, 2005 consist of:

Capital account 1,672,911,930

Undistributed profit carried forward 275,308,711

1,948,220,641


)

}.



Farook BengaiiChairman



9

Quarterly & Nine Months Accounts March 2005 (Un-audited)FAYSALBALANCED .-GROWTH FUt)lD

CASH FLOW STATEMENT (UNAUDITED)FOR THE PERIOD ENDED MARCH 31, 2005

Cash Flow from Operating ActivitiesNet profitfromoperations before taxation

AdjustmentsUnrealized loss on "Held for trading" investmentsTransferred from unrealized loss to capital gainElement of income and capital gains in prices of units

sold less those in units redeemedRemuneration of Management CompanyRemuneration of TrusteeAmortization of preliminary expenses and floatation costs

(Increase)/Decrease in AssetsReceivables (excluding advance taxation)Advance against purchase of Term Finance CertificatesAdvance against purchase of Preference SharesAdvance against purchase of Ordinary Shares

Increase/(Decrease) in LiabilitiesCreditors, accrued and other liabilities (excluding taxation)

Investment in marketable securitiesAdvance tax paid

Remuneration paid to the Management CompanyRemuneration paid to the TrusteeNet cash inflow from operating activities

Cash Flow from Financing ActivitiesNet receipts/(payments) made against sale/(redemption) of unitsNet increase in balance with banks during the periodBalance with banks at the beginning of the periodBalance with banks at the end of the period






'"July -March

2005Rupees

303,946,271

174,915,587

(28,783,319)

20,653,199

32, 715,65~\2,204,65'V

375,342506,027,381

2,223,380

(1,224,503,992)(2,423,301 )

(32,432,946)(2,189,344 )

352,205,098

(377,954,899)(25,749,801 )114,734,05088,984,249

f)


10

Quarterly &Nine Months Accounts March 2005 (Un-audited)FAYSALBALANCED.GROWTH FUND

NOTES TO THE FINANCIAL STATEMENTS(UNAUDITED)FOR THE PERIOD ENDED MARCH 31, 2005

1. LEGAL STATUS AND NATURE OF BUSINESS

Faysal Balanced Growth Fund (the Fund) has been established under the Non-BankingFinance Companies (Establishment and Regulation) Rules, 2003 (the NBFC Rules) andhas been authorized as a unit trust scheme by the Securities and Exchange Commissionof Pakistan (SECP) on February 18, 2004. It has been co.n~uted under a Trust Deed,dated January 29, 2004, between Faysal Asset Management Limited, a company incorporatedunder the Companies Ordinance, 1984 and Muslim Commercial Financial Services (Private)Limited (MCFSL) as the Trustee, also incorporated under the Companies Ordinance,1984 and a wholly owned subsidiary of Muslim Commercial Bank Limited.

'8(The Fund is an open ended balanced mutual fund and offers units for public subscriptionon a continuous basis. The units are transferable and can also be redeemed by surrenderingto the Fund. The units are listed on the Karachi Stock Exchange.

The principal activity of the Fund is to make investments in equity market and fixed incomesecurities including money market instruments.

2. BASIS OF PRESENTATION

These financial statements have been prepared in accordance with the requirements ofthe International Accounting Standard - 34: Interim Financial Reporting as applicable inPakistan, Trust Deed and the Non-Banking Finance Companies (Establishment andRegulation) Rules, 2003.

3. ACCOUNTING POLICIES

The accounting policies and methods of computation followed for the preparation of thesefinancial statements are the same as those applied in preparing the financial statementsof the Fund for the period ended June 30, 2004.

11

March 31, June 30,2005 2004

Note Rupees Rupees

e. INVESTMENTS

Held-for-trading

Listed equity securities 4.1 1,125,120,524 482,224,800Listed debt securities 4.2 . 333,476,000

1,458,596,524 482,224,800Unlisted debt securities 4.3 102,000,000 -

1,560,596,524 482,224,800

FAYSAL FAYSALQuarterly & Nine Months Accounts March 2005 (Un-audited) BALANCED ... Quarterly & Nine Months Accounts March 2005 (Un-audited) BALANCED.

GROWTH FUND GROWTH FUND

No. of holding Acquired Bonus I right Disposed No of holding Markel value No. of holding Acquired Bonus I right Disposed No of holding Marketvalue

at the beginning during the shares received during the at the end of (Rupeesr % of at the beginning during the shares received during the attheend of (Rupees) % of

of period period during the period period the period net assets of period period during the period period the period net assets

No. of holdings . . No. of holdings

4.1 Listed equity securities' Oil and Gas Development Corporation 14,566.500 (13,928,800) 637,700 71,135,435 3.65%

-Pakistan Petroleum Limited 6,371,300 (5,521,300) 850,000 191,377,500 9.82%

. Ordinary share have a faC!!' value of Rs. 10/- each

Fertilizer

Cement FaujiFertilizerCompanyLimited 530,000 1,751,900 92,670 (2,224.570) 150,000 21,300,000 1.09%

D.G.KhanCementlimited 293,000 5,535,500 11,000 (5,089,500) 750,000 44,962,500 2.31% FaujiFertilizerBinQasimLimited 2,586,500 (2,086,500) 500,000 14,900,000 0.76%

KohatCementlimited 69,500 16,200 (85,700) :t) 8EngroChemicalPakistanLimited 946,900 (597,400) 349,500 45,033,075 2.31%

PioneerCementlimited 25,000 (25,000)CheeratCementLimited 2,500 (2,500)

Synthetic&Rayon

DewanSalmanFibresLimited 400,000 950,750 36,750 (687,500) 700,000 17,185,000 0.88%LuckyCementLimited 1,238,000 (770,000) 468,000 22,698,000 1.17%

FaujlCementLtd. 1,540,000 (1,040,000) 500,000 7,800,000 0.40%Technology and Communication

Pakistan Telecommunication Company Ltd. 2,824,000 16,409,500 (19,033,500) 200,000 14,050,000 0.72%InsuranceCompanies

CallmateTellpsTelecom 25,000 25,000 706,250 0.05%AdamjeeInsuranceCompanyLtd. 1,000,000 1,000,000 77,500,000 3.98% TeleCard 1,200,000 1,200,000 18,480,000 0.95%

Commercial BanksTextile Composite

Bank Of Punjab Limited 810,000 (810,000) KohinoorTextileMillslimITed 539,000 361,000 29,640 (921,070) 8,570 422.072 0.02%MuslimCommecialBankLimited 1,825,000 (1,625,000) 200,000 12,800,000 0.66% NaginaCottonMillsLimited 54,500 16,500 71,000 2,059,000 0.11%NationalBankofPakistan 1,677,300 (1,627,300) 50,000 5,795,000 0.30% AzgardNileLimited 1,207,000 (72,000) 1,135,000 43,130,000 2.21%UnionBanklimited 300,000 (100,000) 200,000 8,600,000 0.44% NishatMillsLimited 334,000 (334,000)AskarlCommercialBankLimited 1,188,600 20,000 (1,088,600) 120,000 10,146,000 0.52% Nishat(Chunian) 10,000 (10,000)BankAlfalahLimited 500,000 500,000 22,650,000 1.16%

Nationallnvestrnent Bank 200,000 200,000 5,800,000 0.30% PowerGeneration&Distribution

PICIC 25,000 (25,000) HubPowerCompanylimITed 3,000,000 3,375,000 (6,375,000)

Chemicals Refineries

ICIPakistanLimited 3,496,400 NationalRefinerylimited 307,800 (209,800) 98,000 39,288,200 2.02%(2,828,400) 668,000 63,693,800 3.27%

PakistanPTALimited 8,865,000 (8,865,000) ". 8 AttockRefineryLimited 40,000 (40,000)

TransportModarba

FirstHabibModarba 422,500 1,500 424,000 3,604,000 0.18%Pakistan Intemational Airlines 100,000 (100,000)

Close-EndMutualFundsOil&GasMarketingCompanies

PICICGrowthFund 1,250,000 (1,250,000)ShellPakistanLimited 35,000 3,500 (38,500)

PakistanStateOilCompanylimited 504,000 7,391,600 (7,410,600) 485,000 193,030,000 9.91% Paper&BoardSuiNorthernGasPipelinesCompanyLimited 4,004,900 (2,815,700) 1,189,200 68,379,000 3.51% PackagesLimited 26,100 (26,100)SuiSouthemGasCompanyLimited 650,000 (475,000) 175,000 4,287,500 0.22%

Cable&ElectricGoods

Oil&GasExplorationCompanies PakElectronLimited 732,000 47,310 (416,600) 362,710 18,498,210 0.95%

PakistanOilFieldsLimited 4,495,600 (4,195,600) 300,000 75,810,000 3.89%

8,249,000 97,801,420 238,870(92,772,610)13,516,680 1,125,120,52457.75%

-

12 13

Quarterly & Nine Months Accounts March 2005 (Un-audited)FAYSALBALANCED.GROWTH FUN.D

No.ofholdingAcquired Bonus1right Disposed NoofholdingMarketvalueatthebeginningdurtngthe sharesreceiveddurtngthe attheendof (Rupees)",%of

ofpertod pertod durtngthepertod pertod thepertod netassets

No.ofholdings

102 102,000,0005.24%


5. RECEIVABLES.considered goodAgainstsale of held-far-tradinginvestmentsIn respectof reverserepurchasetransactionsoflistedequitysecuritiesOtherReceivables

DividendreceivableMark-upreceivableon TermFinanceCertificatesIncomereceivableon moneymarkettransactionsReturnreceivableon bankbalancesAdvanceTax

March 31,2005

Rupees

June 30,2004

Rupees

3,379,220

115,904,600

79,066,870

1,175,765,9554.2 Listed debt securities"

H TheseTFC'shaveafacevalueofRs.5,000/-each.

CommercialBanks

UnitedBankUmited

LeasingCompaniesTrustLeasingCompanyLimited

Oil & Gas Exploration Companies

ChandaOil& GasSecurttizationCompanyLTd.

InvestmentBanksICompaniesISecuritiesJehangirSiddiqui&Co.

-

4.3 Unlisted debt securities ..."'These TFCshavea facevalueof Rs.1,000,0001-each.

TransportandCommunicationSpellTelecom 102

102 - 102 102.000.000 5.24%

5.1

8,053,5008,912,857

231,172176,185

2,423,301

3,699,200- - 98,022

466,431564,976

- -4.4 Market Value of held for trading investments as at March 31, 2005

Cost of held for trading investments as at March 31,2005Cost of held for trading investment as at June 30, 2004

March 31,2005

Rupees

4.5 Net unrealized gain I (loss) during the period in the valueof investments classified as 'Held-far-trading'

Market value of marketable securities classified as'Held for trading'

Less: Cost of marketable securities classified as'Held for trading'

1,560,594,524

1,735,650,236

(175,053,712)

1.560.596.5241.735.650,236511,146.244

June 30,2004

Rupees

.482,224,800

511,146,244(28,921,444)

I ~ I

(28,921,444)

8 139,080,835 1,259,661,4545.1 Thismainlyrepresentstaxwithheldtill September30,2004underthe newlyinsertedSection233(A)

of the IncomeTaxOrdinance,2001 throughFinanceAct, 2004.This amountwill be claimedas refundableinthe returnof incomefor the yearending-June30, 2005.

6. PRELIMINARYEXPENSESAND FLOATATIONCOSTSBalanceat the beginningof the periodLess:Amortizationduringthe periodBalanceat the endof the period

7. COMMITMENTS

Carryover transactions(includingtransactionstobe rolledover)enteredinto by the Fund in respectof which the purchasetransactionhas not beensettled

8. TRANSACTIONSWITHCONNECTEDPERSONS

Faysal Asset Management LimitedRemunerationof ManagementCompanySalesload

Faysal Bank Limited. IssueofUnits

: , Profitondepositaccount

Aqeel Karim Dhedhi Securities (Pvt.) LimitedBrokeragefeePurchaseof marketablesecuritiesSaleof marketablesecurities

Profiton moneymarkettransactionsListedequitysecuritiespurchasedunder

resalecommitment

Listedequitysecuritiespurchasedunder resalecommitmentmatured

Issueof UnitsRedemptionof Units

2,454,795375,342

2,079,453

2,500,00045,205

2,454,795

NetunrealizedgainI (loss)in marketvalueof securitiesclassifiedas'Heldfortrading'atthebeginningoftheperiod

Less:Realisedon disposalduringtheperiod

14

242,612,500 2,463,021,625

(174,915,587)

15

25,000 25,000 124,976,0006.41%

4,500 4,500 20,250,000 1.04%

30,000 30,000 150,000,0007.7Of)

7,350 7,350 38,250,000 1.97%

68,850- -

66,850 333.476.00017.12%- -

32,715,650 9,102,109605,024 104,848

2,000,000Units1,698,528 2,953,187

1,747,480 125,7502,353,646,180 120,152,7501,476,766,425 . 12,412,200

3,293,391 7,043,753

11,330,393,885 24,974,335,140

11,332,622,936 24,653,153,3691,000,000Units

400,000Units


9. DATE OF AUTHORISATION FOR ISSUE

These financial statements were authorized for issue by Board of Directors of ManagementCompany on April 14, 2005.

10. GENERAL

10.1 As the Fund was launched on April 17, 2004, there are no comparative figure toreport in respect of profit and loss account.

10.2 Figures have been rounded off to the nearest rupee.

41) 8

. .For Faysal Asset Management Limited

(Management Company)





16

Documents

Mr. Iqbal Alimohamed, Director Mf. Aqeel Karim Dhedhi ... · Mr. Ahsan Raza Durrani, Chief Executive Officer Mr. Hassan Mohamed Mahmood, Director Mr. Mohammad Khan Hoti, Director