| First ICP Mutual Fund |
|
|
|
|
|
|
|
|
|
|
|
| Annual
Report 1999 |
|
|
|
| INVESTMENT
CORPORATION OF PAKISTAN |
|
|
|
|
If undelevered please
return to: |
|
| HEAD
OFFICE: |
|
MUTUAL FUNDS DEPTT: |
|
| N.B.P.
Building, 5th Floor, |
|
Dawood Centre, Ground
Floor, |
|
| P.O.
Box No. 5410, |
|
Moulvi Tamizuddin Khan
Road, Karachi. |
|
| I.I.
Chundrigar Road, Karachi |
|
Phones: 5686014-15,
5685104-105 |
|
| Phones:
921-2360-69 |
|
Tele: 20079 ICP PK. 29223
ICP PK. |
|
| Telefax:
92-21-2388-89 |
|
Telefax: 92-021-5680035 |
|
| E-mail:
icp@paknet2-3.ptc.pk |
|
E-mail:
icpkb@paknet3.ptc.pk |
|
|
|
| Balance
Sheet as at 30 June 1999 |
|
|
|
|
|
|
Note |
1999 |
1998 |
|
|
|
|
Rupees |
Rupees |
|
| NET ASSETS |
|
|
|
| Investment
in quoted shares |
|
|
3 |
48,867,309 |
53,318,339 |
|
| [Market
value Rs.46,232,199 (1998: Rs. 40,214,771)] |
|
|
|
|
| Security
deposit |
|
|
|
100,000 |
100,000 |
|
|
|
|
|
| Current
assets |
|
|
|
| Dividend
receivable |
|
|
400,000 |
648,125 |
|
| Prepaid
expenses |
|
|
7,500 |
20,000 |
|
| Current
account with the Investment Corporation |
|
| of
Pakistan (ICP) |
|
|
6,858,342 |
5,988,726 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
7,265,842 |
6,656,851 |
|
| Current
liabilities |
|
|
|
| Accrued
expenses |
|
|
19,338 |
48,159 |
|
| Unclaimed
dividend |
|
|
624,178 |
3,898,498 |
|
| Taxation - net |
|
|
253,234 |
68,785 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
896,750 |
4,015,442 |
|
|
|
|
------------------ |
------------------ |
|
|
|
6,369,092 |
2,641,409 |
|
|
|
------------------ |
------------------ |
|
|
|
55,336,401 |
56,059,748 |
|
|
|
========== |
========== |
|
| FINANCED
BY |
|
|
|
| Capital
and Reserves |
|
|
|
| Capital |
|
|
|
| Authorised |
|
|
|
| 5,000,000 Certificates of
Rs. 10/- each |
|
|
50,000,000 |
50,000,000 |
|
|
|
|
========== |
========== |
|
| Issued,
subscribed and paid-up |
|
|
| 5,000,000
Certificates of Rs. 10/- each fully paid in cash |
|
50,000,000 |
50,000,000 |
|
|
|
|
| Revenue
reserve |
|
|
|
| Unappropriated
income |
|
|
|
5,336,401 |
6,059,748 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
55,336,401 |
56,059,748 |
|
|
|
|
========== |
========== |
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
for the Investment Corporation of Pakistan |
|
|
|
ASADULLAH KHAWAJA |
|
ISTAQBAL MEHDI |
|
S.M. MUNEER |
|
|
Managing Director |
|
Director |
|
Director |
|
|
|
| Income
and Expenditure Account |
|
| For
the year ended 30 June 1999 |
|
|
|
|
1999 |
1998 |
|
|
|
Note |
Rupees |
Rupees |
|
|
|
|
| INCOME |
|
|
|
| Dividend |
|
|
3,274,831 |
40,821,158 |
|
| Return
on current account with the ICP |
|
913,416 |
1,021,302 |
|
| Profit
on sale of investment |
|
1,610,835 |
8,646,550 |
|
| Other income |
|
|
2,138 |
5,020 |
|
|
|
------------------ |
------------------ |
|
|
|
5,800,920 |
13,755,730 |
|
|
|
|
| EXPENDITURE |
|
|
|
| Management
fee |
|
5 |
1,447,935 |
1,217,695 |
|
| Auditors'
remuneration |
|
6 |
14,730 |
12,130 |
|
| Diminution
in the value of investment |
|
|
4,527,025 |
-- |
|
| Other
expenses |
|
7 |
226,497 |
270,969 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
6,216,187 |
1,500,794 |
|
|
|
|
------------------ |
------------------ |
|
| (LOSS)
/ INCOME BEFORE TAXATION |
|
(415,267) |
12,254,936 |
|
|
|
|
| TAXATION
- Current |
|
|
8 |
265,160 |
510,000 |
|
| - Prior |
|
|
|
42,920 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
308,050 |
10,000 |
|
|
|
------------------ |
------------------ |
|
| NET
(LOSS) / INCOME AFTER TAXATION |
|
(723,347) |
11,744,936 |
|
| UNAPPROPRIATED
INCOME BROUGHT FORWARD |
|
6,059,748 |
1,814,812 |
|
|
|
------------------ |
------------------ |
|
| AVAILABLE
FOR APPROPRIATION |
|
5,336,401 |
13,559,748 |
|
| Interim
dividend Nil (1998: @ 15%) |
|
-- |
7,500,000 |
|
|
|
|
------------------ |
------------------ |
|
| UNAPPROPRIATED
INCOME CARRIED FORWARD |
|
5,336,401 |
6,059,748 |
|
|
|
|
========== |
========== |
|
| Basic
(loss) / earning per share (certificate) |
|
9 |
(0.14) |
2.35 |
|
|
|
|
========== |
========== |
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
|
for the Investment Corporation of Pakistan |
|
|
|
ASADULLAH KHAWAJA |
|
ISTAQBAL MEHDI |
|
S.M. MUNEER |
|
|
Managing Director |
|
Director |
|
Director |
|
|
|
|
|
|
|
| Cash
Flow Statement For the year ended 30 June 1999 |
|
|
|
Note |
1999 |
1998 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
| Cash
generated from operations |
|
10 |
1,819,611 |
2,107,380 |
|
| Sale
of investment |
|
|
9,142,090 |
11,480,500 |
|
| Purchase
of investment |
|
|
(7,607,550) |
(13,379,475) |
|
| Taxes paid |
|
|
(123,631) |
(445,999) |
|
|
|
|
------------------ |
------------------ |
|
| Net
cash inflow / (outflow) from operating activities |
|
3,230,520 |
(237,594) |
|
|
|
|
|
| CASH
FLOW FROM INVESTING ACTIVITIES |
|
| Return
on current account with the ICP |
|
913,416 |
1,021,302 |
|
|
|
------------------ |
------------------ |
|
| Security
deposit |
|
-- |
(100,000 |
|
| Net
cash inflow from investing activities |
|
913,416 |
921,302 |
|
|
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
|
| Dividend paid |
|
|
(3,274,320) |
(7,522,608) |
|
|
|
------------------ |
------------------ |
|
| Net
cash used in financing activities |
|
(3,274,110) |
(7,522,608) |
|
|
|
------------------ |
------------------ |
|
| NET
INCREASE / (DECREASE) IN CASH EQUIVALENT |
|
869,616 |
(6,838,900) |
|
| CASH
EQUIVALENT AT THE BEGINNING OF THE YEAR |
|
5,988,726 |
12,827,626 |
|
|
|
|
|
------------------ |
------------------ |
|
| CASH
EQUIVALENT AT THE END OF THE YEAR |
11 |
6,858,342 |
5,988,726 |
|
|
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
|
for the Investment Corporation of Pakistan |
|
|
|
|
ASADULLAH KHAWAJA |
|
ISTAQBAL MEHDI |
|
S.M. MUNEER |
|
|
Managing Director |
|
Director |
|
Director |
|
|
|
|
| Notes
to the Accounts For the year ended 30 June 1999 |
|
|
|
|
| 1.
THE FUND AND ITS OPERATIONS |
|
| In
order to broaden the base and to encourage investment in shares of companies
quoted on the stock exchanges in the country, |
|
| the
First ICP Mutual Fund was established by the Investment Corporation of
Pakistan (ICP), acting as its trustee, on June 15, 1967 |
|
| under
the ICP Ordinance, 1966. The Fund is listed on the stock exchanges in
Pakistan, |
|
|
| 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
|
|
| 2.1
Basis of preparation |
|
| These
accounts have been prepared in accordance with International Accounting
Standards, as applicable in Pakistan. |
|
|
| 2.2
Accounting convention |
|
| These
accounts have been prepared under the historical cost convention. |
|
|
| 2.3
Investment |
|
|
| i)
Investment is valued at average cost where cost is lower than the market
value, determined on the basis of the average of |
|
| the
highest and lowest quotation on the balance sheet date; |
|
|
| ii)
In cases where market value is lower than carrying value, the carrying value
is reduced to recognise other than temporary |
|
| decline,
i.e., for a period not less than three years, in order to arrive at their
book value; and |
|
|
| iii)
Profit or loss on sale of investment is accounted for in the year in which it
arises. |
|
|
| 2.4 Taxation |
|
| Provision
for taxation is based on taxable income at the current rates for taxation
after taking into account tax credits |
|
| available,
if any. |
|
|
|
|
| 2.5
Revenue recognition |
|
|
| i)
Dividend income is accounted for at the closure of share transfer books of
the company declaring dividend; and |
|
|
| ii)
Return on current account with ICP is accounted for on the basis of the PLS
rate declared half yearly by a bank on PLS |
|
| bank
accounts. |
|
|
| 3.
INVESTMENT IN QUOTED SHARES |
|
| Unless
stated otherwise, the holdings are in the Ordinary shares of Rs. 10/- each. |
|
|
| 1999 |
1998 |
|
|
|
1999 |
|
1998 |
|
| *Holding |
|
|
Book value |
Market value |
Book value |
Market value |
|
| No. of shares |
Name of the company |
**Rate |
Amount |
**Rate |
Amount |
**Rate |
Amount |
**Rate |
Amount |
|
|
|
|
|
Rupees |
|
Rupees |
|
Rupees |
|
Rupees |
|
|
|
MODARABAS |
|
|
|
|
|
|
|
|
| 39,000 |
79,000 |
F.G. Modaraba |
10.15 |
396,125 |
12.25 |
477,750 |
10.15 |
802,525 |
10.75 |
849,250 |
|
|
|
|
|
|
|
|
LEASING |
|
|
|
|
|
|
|
|
| 43,750 |
35,000 |
Orix Leasing Company Ltd. |
39.62 |
1,733,800 |
26.00 |
1,337,500 |
49.53 |
1,733,800 |
30.00 |
1,050,000 |
|
|
|
|
|
|
|
|
BANKS/INVESTMENT BANKS |
|
|
|
|
| 83,490 |
63,250 |
Bank Al Habib Ltd. |
16.90 |
1,411,250 |
18.00 |
1,502,820 |
22.31 |
1,411,250 |
23.00 |
1,454,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
SUGAR AND ALLIED
INDUSTRIES |
|
|
|
| 39,050 |
35,500 |
Dewan Sugar Mills Ltd. |
23.70 |
925,600 |
17.75 |
693,138 |
26.07 |
925,600 |
19.00 |
674,500 |
|
| -- |
139,081 |
Mirpurkhas Sugar Mills
Ltd. |
-- |
-- |
-- |
-- |
16.37 |
2,277,902 |
12.25 |
1,703,742 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CEMENT |
|
|
|
|
|
|
|
| 24,256 |
24,256 |
Cherat Cement Company
Ltd. |
7.38 |
179,189 |
13.00 |
315,328 |
7.38 |
179,189 |
10.20 |
247,411 |
|
|
| 30,000 |
30,000 |
Dadabhoy Cement
Industries Ltd. |
8.00 |
240,000 |
4.25 |
127,500 |
8.00 |
240,000 |
3.50 |
105,000 |
|
| 50,000 |
50,000 |
Lucky Cement Company Ltd. |
3.82 |
191,000 |
3.82 |
191,000 |
13.32 |
666,275 |
3.90 |
195,000 |
|
| 50,000 |
50,000 |
Pakland Cement Ltd. |
13.01 |
650,500 |
4.75 |
237,500 |
13.01 |
650,500 |
4.10 |
205,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FUEL AND ENERGY |
|
|
|
|
|
|
|
|
|
| 260,000 |
160,000 |
The Hub Power Company
Ltd. |
33.74 |
8,773,250 |
14.07 |
3,658,200 |
44.54 |
7,127,750 |
12.37 |
1,979,200 |
|
| 128,500 |
83,000 |
Mari Gas Company Ltd. |
20.93 |
2,690,750 |
17.90 |
2,300,150 |
22.58 |
1,874,600 |
17.50 |
1,452,500 |
|
|
| 79,712 |
65,594 |
Pakistan State Oil
Company Ltd. |
3.87 |
305,057 |
92.75 |
7,300,538 |
4.65 |
305,057 |
73.75 |
4,837,558 |
|
| 147,829 |
128,547 |
Sui Northern Gas
Pipelines Ltd. |
4.56 |
675,000 |
8.37 |
1,237,329 |
5.25 |
675,000 |
8.85 |
1,137,641 |
|
| 50,500 |
25,000 |
Shell Pakistan Ltd. |
147.88 |
7,468,150 |
163.00 |
8,231,500 |
141.16 |
3,529,150 |
146.50 |
3,662,500 |
|
| -- |
12,500 |
Shell Pakistan Ltd. (RP) |
-- |
-- |
-- |
-- |
130.00 |
1,625,000 |
202.00 |
2,525,000 |
|
| 199,145 |
181,041 |
Sui Southern Gas Company
Ltd. |
5.08 |
1,013,530 |
8.60 |
1,712,647 |
5.59 |
1,013,530 |
9.00 |
1,629,369 |
|
|
|
|
|
|
|
|
AUTO AND ALLIED
ENGINEERING |
|
|
| 100,000 |
50,000 |
Pak Suzuki Motors Company
Ltd. |
36.28 |
3,628,800 |
25.00 |
2,500,000 |
43.42 |
2,171,300 |
34.00 |
1,700,000 |
|
|
|
|
|
|
|
|
|
CABLES & ELECTRICAL |
|
|
|
| 21,175 |
21,175 |
Philips Electrical
Industries of Pakistan Ltd. |
70.61 |
1,495,305 |
41.95 |
888,291 |
70.61 |
1,495,305 |
34.09 |
721,856 |
|
| 10,395 |
8,250 |
Refrigerators
Manufacturing Company Pakistan Ltd. |
61.64 |
640,845 |
10.00 |
103,950 |
77.67 |
640,845 |
12.00 |
99,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TRANSPORT AND
COMMUNICATION |
|
|
| 50,000 |
100,000 |
P.T.C.L. "A" |
|
33.24 |
1,662,250 |
20.02 |
1,001,000 |
33.24 |
3,324,250 |
15.77 |
1,577,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CHEMICAL AND
PHARMACEUTICAL |
|
|
|
|
|
|
| 58,520 |
24,800 |
BOC Pakistan Ltd. |
125.94 |
3,591,811 |
81.00 |
2,310,120 |
144.83 |
3,591,811 |
90.00 |
2,232,000 |
|
| 64,050 |
71,875 |
Engro Chemical (Pakistan)
Ltd. |
81.57 |
5,224,697 |
73.67 |
4,718,563 |
97.88 |
7,035,550 |
51.25 |
3,683,594 |
|
| 50,000 |
100,000 |
F.F.C. Jordan Fertilizer
Company Ltd. |
13.43 |
671,500 |
41.17 |
4,117,000 |
81.68 |
8,168,750 |
51.37 |
5,137,000 |
|
|
| 100,000 |
50,000 |
Fauji Fertilizer Company
Ltd. |
41.17 |
4,117,000 |
11.25 |
562,500 |
13.43 |
671,500 |
12.97 |
648,500 |
|
| 2,500 |
2,500 |
Wah Noble Chemical Company Ltd. |
21.80 |
54,500 |
14.00 |
35,000 |
21.80 |
54,500 |
16.00 |
40,000 |
|
|
|
|
|
|
|
PAPER AND BOARD |
|
|
|
|
|
| 17,000 |
18,000 |
Cherat Papersack Company
Ltd. |
40.11 |
681,900 |
38.00 |
646,000 |
40.11 |
681,900 |
28.00 |
476,000 |
|
|
| 18,150 |
16,500 |
Century Paper Board Company Ltd. |
24.54 |
445,500 |
12.50 |
226,875 |
27.00 |
445,500 |
11.60 |
191,400 |
|
|
|
|
------------------ |
|
------------------ |
|
------------------ |
|
------------------ |
|
|
|
|
|
48,867,309 |
|
46,232,199 |
|
53,318,339 |
|
40,214,771 |
|
|
========== |
|
========== |
|
========== |
|
========== |
|
|
| *
The above shares are held in the name of the Investment Corporation of
Pakistan which acts as a Trustee to the Fund. |
|
|
| **
Rounded off to two decimal places |
|
|
| 4.
STATEMENT OF CHANGES IN EQUITY |
|
|
Issued, |
Unappropriated |
Total |
|
|
|
subscribed and |
income |
Rupees |
|
|
|
paid up capital |
Rupees |
|
|
|
|
Rupees |
|
|
|
|
|
|
|
|
| Balance
as at 30 June 1997 |
|
50,000,000 |
1,814,812 |
51,814,812 |
|
|
| Income
for the year |
|
-- |
11,744,936 |
11,744,936 |
|
|
| Dividend |
|
-- |
(7.500,000) |
(7,500,000) |
|
|
|
|
------------------ |
------------------ |
------------------ |
|
|
| Balance
as at 30 June 1998 |
|
50,000,000 |
6,059,748 |
56,059,748 |
|
|
|
|
|
|
|
| (Loss)
for the year |
|
-- |
(723,347) |
(723,347) |
|
|
|
|
------------------ |
------------------ |
------------------ |
|
|
| Balance
as at 30 June 1999 |
|
50,000,000 |
5,336,401 |
55,336,401 |
|
|
|
|
========== |
========== |
========== |
|
|
|
|
|
| 5.
MANAGEMENT FEE |
|
|
|
|
|
| The
management fee is payable to Investment Corporation of Pakistan @ 1/2% per
annum on the initial paid-up capital of the Fund. |
|
| The
management fee in respect of the additional capital raised by way of Right
Issue is payable upto 3% per annum of the net assets |
|
| market
value of the Fund to be determined at the close of the financial year. |
|
|
|
|
|
|
|
1999 |
1998 |
|
|
|
|
|
Rupees |
Rupees |
|
| Management
fee @ 1/2% per annum of the initial |
|
| paid-up
capital of Rs. 5 million |
|
25,000 |
25,000 |
|
|
|
|
| Management
fee @ 3% per annual of the market |
|
| value
of net assets at the close of the year |
|
5.1 |
1,422,935 |
1,192,695 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
1,447,935 |
1,217,695 |
|
|
|
|
========== |
========== |
|
|
|
|
|
| 5.1
Market value of net assets al the close of the year |
|
| Investment
.m quoted shares |
|
3 |
46,232,199 |
40,214,771 |
|
| Long
term deposit |
|
|
100,000 |
100,000 |
|
|
|
|
| Current
assets |
|
|
|
| Dividend
receivable |
|
|
|
400,000 |
648,125 |
|
| Prepaid
expenses |
|
|
|
7,500 |
20,000 |
|
| Current
account with the ICP |
|
|
|
6,858,342 |
7,206,421 |
|
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
|
7,265,842 |
7,874,546 |
|
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
|
53,598,041 |
48,189,317 |
|
| Current
liabilities |
|
|
|
| Accrued
expenses |
|
|
|
19,338 |
48,159 |
|
| Unclaimed
dividend |
|
|
|
624,178 |
3,898,498 |
|
| Taxation - net |
|
|
|
|
253,234 |
68,785 |
|
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
|
896,750 |
4,015,442 |
|
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
|
52,701,291 |
44,173,875 |
|
|
|
|
========== |
========== |
|
|
|
|
| 1999: |
(52,701,291 x
45,000,000) |
|
|
@ 3% = |
1,422,935 |
|
|
50,000,000 |
|
|
|
========== |
|
|
| 6.
AUDITORS' REMUNERAI1ON |
|
|
|
Taseer Hadi |
Ford, Rhodes, |
1999 |
1998 |
|
|
Khalid & Co. |
Robson, Morrow |
Rupees |
Rupees |
|
|
Rupees |
Rupees |
|
|
|
|
|
| Audit fee |
|
2,950 |
2,950 |
5,900 |
5,130 |
|
| Tax services |
|
8,830 |
-- |
8,830 |
7,000 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
|
|
11,780 |
2,950 |
14,730 |
12,130 |
|
|
|
========== |
========== |
========== |
========== |
|
|
|
|
| 7.
OTHER EXPENSES |
|
|
| Printing
and stationery |
|
|
4,526 |
36,112 |
|
| Advertising
and publicity |
|
|
3,185 |
17,276 |
|
| Professional
charges |
|
|
3,558 |
12,818 |
|
| Listing
fee - stock exchanges |
|
|
46,250 |
46,250 |
|
| - Central Depository
Company |
|
27,081 |
12,500 |
|
| Computer
related expenses |
|
|
49,649 |
48,098 |
|
| Postage |
|
|
|
14,716 |
39,386 |
|
| Professional
tax |
|
|
38,000 |
38,000 |
|
| Share
transfer stamps |
|
|
30,244 |
11,075 |
|
| Bank charges |
|
|
|
4,428 |
5,163 |
|
| Excise duty |
|
|
|
-- |
1,300 |
|
| Miscellaneous |
|
|
4,860 |
2,991 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
226,497 |
270,969 |
|
|
|
|
========== |
========== |
|
|
| 8.
TAXATION |
|
|
|
| The
income-tax assessment of the Fund has been finalised upto and including
assessment year 1998-99. However, the Fund has |
|
| filed
appeals before the Commissioner of Income-tax (Appeal), relating to
assessment years 1993-94, 1994-95, 1995-96, 1996-97 |
|
| and
1998-99. In case of any adverse decision in respect of appeals for the above
referred assessment years, no material tax liability |
|
| is
expected to arise. |
|
|
|
|
|
|
| 9.
BASIC (LOSS) / EARNING PER SHARE (CERTIFICATE) |
|
| (Loss)/Income after taxation |
|
|
|
(723,347) |
11,744,936 |
|
|
|
|
========== |
========== |
|
