| Seventh ICP Mutual Fund |
|
|
|
|
|
|
|
|
|
|
| Annual
Report 1999 |
|
|
|
|
|
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 |
|
Telex: 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 |
47,179,817 |
49,442,697 |
|
| [Market
value Rs 42,760,868 (1998: Rs.41,051,568)] |
|
|
|
|
|
| Security
deposit |
|
|
100,000 |
100,000 |
|
|
|
|
|
|
|
| Current assets |
|
|
|
| Dividend
receivable |
|
|
640,920 |
962,000 |
|
| Prepaid
expenses |
|
|
7,500 |
20,000 |
|
| Current
account with the Investment Corporation |
|
|
| of
Pakistan (ICP) |
|
|
10,778,328 |
7,908,005 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
11,426,748 |
8,890,005 |
|
|
|
|
|
| Current
liabilities |
|
|
|
| Accrued
expenses |
|
|
19,338 |
50,116 |
|
| Dividend
payable |
|
|
5,000,000 |
-- |
|
| Unclaimed
dividend |
|
|
436,610 |
2,191,164 |
|
| Taxation - net |
|
|
4,486 |
260,286 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
5,460,434 |
2,501,566 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
5,966,314 |
6,388,439 |
|
|
|
|
------------------ |
------------------ |
|
|
|
53,246,131 |
55,931,136 |
|
|
|
|
|
========== |
========== |
|
|
|
|
|
| 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 |
|
|
3,246,131 |
5,931,136 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
53,246,131 |
55,931,136 |
|
|
|
|
========== |
========== |
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
|
for the Investment Corporation of Pakistan |
|
|
|
|
|
|
ASADULLAH KHAWAJA |
|
ISTAQBAL MEHDI |
|
SM. MUNEER |
|
|
Managing Director |
|
Director |
|
Director |
|
|
|
|
| Income
and Expenditure Account |
|
| For
the year ended 30 June 1999 |
|
|
|
|
Note |
1999 |
1998 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
|
| INCOME |
|
|
|
| Dividend |
|
|
3,061,237 |
3,004,390 |
|
| Return
on current account with the ICP |
|
857,366 |
886,888 |
|
| Profit
on sale of investment |
|
768,990 |
8,001,040 |
|
| Other income |
|
|
1,551 |
9,541 |
|
|
|
------------------ |
------------------ |
|
|
|
4,689,144 |
11,901,859 |
|
|
|
|
| EXPENDITURE |
|
|
| Management
fee |
|
5 |
1,341,852 |
1,220,246 |
|
| Auditors'
remuneration |
|
6 |
14,730 |
12,130 |
|
| Diminution
in the value of investment |
|
|
864,750 |
-- |
|
| Other expenses |
|
7 |
204,021 |
272,923 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
2,425,353 |
1,505,299 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
2,263,791 |
10,396,560 |
|
| Provision
In Respect Of Golden |
|
|
|
| Handshake
Expenses- net |
|
|
-- |
(874,541) |
|
|
|
|
|
|
| INCOME
BEFORE TAXATION |
|
2,263,791 |
9,522,019 |
|
|
|
|
|
|
| TAXATION
- Current |
|
|
8 |
-- |
410,000 |
|
| - Prior |
|
(51,204) |
-- |
|
|
|
------------------ |
------------------ |
|
|
|
(51,204) |
410,000 |
|
|
|
|
|
|
| NET
INCOME AFTER TAXATION |
|
|
2,314,995 |
9,112,019 |
|
| UNAPPROPRIATED
INCOME BROUGHT FORWARD |
|
5,931,136 |
1,819,117 |
|
|
|
|
------------------ |
------------------ |
|
| AVAILABLE
FOR APPROPRIATION |
|
8,246,131 |
10,931,136 |
|
|
|
|
| Interim
dividend Nil (1998: @ 10%) |
|
|
-- |
5,000,000 |
|
| Final
dividend 10% (1998: Nil) |
|
|
5,000,000 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
5,000,000 |
5,000,000 |
|
|
|
|
------------------ |
------------------ |
|
| UNAPPROPRIATED
INCOME CARRIED FORWARD |
|
3,246,131 |
5,931,136 |
|
|
|
|
========== |
========== |
|
|
|
|
| Basic
earning per share (certificate) |
|
9 |
0.46 |
1.82 |
|
|
|
|
|
========== |
========== |
|
|
|
|
| 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 |
1,804,987 |
268,660 |
|
| Sale
of investment |
|
|
2,296,720 |
15,686,100 |
|
| Purchase
of investment |
|
|
(129,600) |
(13,078,825) |
|
| Taxes paid |
|
|
(204,596) |
(193,795) |
|
|
|
|
------------------ |
------------------ |
|
| Net
cash inflow from operating activities |
|
3,767,511 |
2,144,820 |
|
|
|
|
|
|
| CASH
FLOW FROM iNVESTING ACTIVITIES |
|
|
| Return
on current account with the ICP |
|
857,366 |
886,888 |
|
| Security deposit |
|
|
|
|
-- |
(100,000) |
|
|
|
|
------------------ |
------------------ |
|
| Net
cash inflow from investing activtties |
|
857,366 |
786,888 |
|
|
|
|
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
|
|
|
| Dividend paid |
|
|
(1,754,554) |
(6,029,824) |
|
|
|
|
------------------ |
------------------ |
|
| Net
cash used in financing activities |
|
|
(1,754,554) |
(6,029,824) |
|
|
|
|
------------------ |
------------------ |
|
| NET
INCREASE /(DECREASE) IN CASH EQUIVALENT |
|
2,870,323 |
(3,098,116) |
|
| CASH
EQUIVALENT AT THE BEGINNING OF THE YEAR |
|
7,908,005 |
11,006,121 |
|
|
|
|
------------------ |
------------------ |
|
| CASH
EQUIVALENT AT THE END OF THE YEAR |
11 |
10,778,328 |
7,908,005 |
|
|
|
|
========== |
========== |
|
|
| 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 JUNE 30, 1999 |
|
|
| 1.
STATUS AND NATURE OF BUSINESS |
|
| In
order to broaden the base and to encourage investment in shares of companies
quoted on the stock exchanges in the country, the Seventh ICP |
|
| Mutual
Fund was established by the investment Corporation of Pakistatt (ICP), acting
as its trustee, on May 15, 1975 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 al average cost where cost is lowel 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 the 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 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 |
Name of the company |
|
Book value |
Market value |
Book value |
Market value |
|
|
| No. of shares |
|
**Rate |
Amount |
**Rate |
Amount |
**Rate |
Amount |
**Rate |
Amount |
|
|
Rupees |
|
Rupees |
|
Rupees |
|
Rupees |
|
|
MODARABAS |
|
| 15,660 |
15,660 |
F.G. Modaraba |
|
|
9.84 |
154,135 |
12.25 |
191,835 |
9.84 |
154,135 |
10.75 |
168,345 |
|
|
|
|
BANKS/INVESTMENT BANKS |
|
|
| 50,000 |
50,000 |
Faysal Bank Ltd. |
|
25.57 |
1,278,875 |
9.35 |
467,500 |
25.57 |
1,278,875 |
9.27 |
463,500 |
|
|
|
|
TEXTILE SPINNING |
|
|
| 26,750 |
26,750 |
Khalid Siraj Textile
Mills Ltd. |
|
3.25 |
86,918 |
3.25 |
86,938 |
4.25 |
113,688 |
3.25 |
86,938 |
|
|
|
|
|
|
|
|
|
|
SUGAR |
|
|
| -- |
135,000 |
Habib Sugar Mills Ltd.
(Rs. 5) |
|
-- |
-- |
-- |
-- |
5.25 |
708,929 |
7.50 |
1,012,500 |
|
|
|
|
|
CEMENT |
|
|
|
|
|
|
|
|
|
| 133,960 |
133,960 |
Cherat Cement Company
Ltd. |
|
16.56 |
2,219,000 |
13.00 |
1,741,480 |
16.56 |
2,219,000 |
10.20 |
1,366,392 |
| 50,000 |
50,000 |
Lucky Cement Company Ltd. |
|
3.82 |
191,000 |
3.82 |
191,000 |
11.33 |
566,500 |
3.90 |
195,000 |
|
|
|
|
FUEL AND ENERGY |
|
|
|
|
|
|
|
|
| -- |
506 |
Karachi Electric Supply
Corporation Ltd. |
-- |
-- |
-- |
-- |
6.91 |
3,500 |
8.42 |
4,261 |
| 55,000 |
55,000 |
National Refinery Ltd. |
|
12.31 |
677,421 |
30.37 |
1,670,350 |
12.31 |
677,422 |
15.50 |
852,500 |
| 30,720 |
25,600 |
Pakistan State Oil Co.
Ltd. |
|
211.92 |
6,510,300 |
92.75 |
2,849,280 |
254.30 |
6,510,300 |
73.75 |
1,888,000 |
| 45,000 |
30,000 |
Shell Pakistan Ltd. |
|
129.45 |
5,825,500 |
163.00 |
7,335,000 |
129.18 |
3,875,500 |
146.50 |
4,395,000 |
| -- |
15,000 |
Shell Pakistan (RP) |
|
-- |
-- |
-- |
-- |
130.00 |
1,950,000 |
202.00 |
3,030,000 |
| 100,000 |
100,000 |
S. Electric Power Company
Ltd. |
|
16.50 |
1,650,000 |
6.32 |
632,000 |
16.50 |
1,650,000 |
3.00 |
300,000 |
|
|
|
|
|
|
|
|
|
TRANSPORT AND
COMMUNICATION |
|
|
|
|
|
|
|
|
| 100,000 |
100,000 |
P.T.C.L. "A" |
|
33.69 |
3,369,000 |
20.02 |
2,002,000 |
33.69 |
3,369,000 |
15.77 |
1,577,000 |
|
|
|
|
|
|
|
|
|
|
|
|
CHEMICAL AND
PHARMACEUTICAL |
|
|
|
|
|
|
| 13,225 |
10,000 |
BOC Pakistan Ltd. |
|
122.47 |
1,619,700 |
81.00 |
1,071,225 |
149.01 |
1,490,100 |
90.00 |
900,000 |
| 7,440 |
6,200 |
Dawood Hercules Chemicals
Ltd. |
|
57.75 |
429,700 |
102.00 |
758,880 |
69.30 |
429,700 |
120.00 |
744,000 |
| 41,060 |
42,550 |
Engro Chemicals
(Pakistan) Ltd. |
|
81.53 |
3,347,700 |
73.67 |
3,024,890 |
97.83 |
4,163,000 |
51.25 |
2,180,688 |
| 95,000 |
95,000 |
F.F.C. Jordan Fertilizer
Company Ltd. |
11.25 |
1,068,750 |
11.25 |
1,068,750 |
16.11 |
1,531,200 |
12.97 |
1,232,150 |
| 150,000 |
150,000 |
Fauji Fertilizer Company
Ltd. |
|
72.35 |
10,853,500 |
41.17 |
6,175,500 |
72.35 |
10,853,500 |
51.37 |
7,705,500 |
| 557,385 |
557,385 |
ICI Pakistan Ltd. |
|
10.00 |
5,576,647 |
9.00 |
5,016,465 |
10.00 |
5,576,647 |
11.62 |
6,476,814 |
|
|
|
|
PAPER AND BOARD |
|
|
|
|
|
|
|
|
|
| 206,775 |
179,805 |
Packages Ltd. |
|
11.22 |
2,321,651 |
41.00 |
8,477,775 |
12.91 |
2,321,651 |
36.00 |
6,472,980 |
|
|
|
------------------ |
|
------------------ |
|
------------------ |
|
------------------ |
|
|
Rupees |
|
47,179,817 |
|
42,760,868 |
|
49,442,697 |
|
41,051,568 |
|
|
|
|
|
========== |
|
========== |
|
========== |
|
========== |
|
|
|
|
|
|
|
|
|
|
|
|
| *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 |
|
|
|
|
paid up capital |
|
|
|
|
|
| Balance
as at 30 June 1997 |
|
|
50,000,000 |
1,819,117 |
51,819,117 |
|
| Income
for the year |
|
|
-- |
9,112,019 |
9,112,019 |
|
| Dividend |
|
|
-- |
(5,000,000) |
(5,000,000) |
|
|
|
|
------------------ |
------------------ |
------------------ |
|
| Balance
as at 30 June 1998 |
|
|
50,000,000 |
5,931,136 |
55,931,136 |
|
| Income
for the year |
|
|
-- |
2,314,995 |
2,314,995 |
|
| Dividend - |
|
|
-- |
(5,000,000) |
(5,000,000) |
|
|
|
|
------------------ |
------------------ |
------------------ |
|
| Balance
as at 30 June 1999 |
|
Rupees |
50,000,000 |
3,246,131 |
53,246,131 |
|
|
|
|
========== |
========== |
========== |
|
|
| 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 |
|
| Management
fee @1/2% per annum of the initial |
|
|
| paid-up
capital of Rs. 10 million |
|
|
|
50,000 |
50,000 |
|
|
|
|
| Management
fee @3% per annum of the market |
|
|
| value
of net assets at the close of the year |
|
5.1 |
1,291,852 |
1,170,246 |
|
|
|
|
------------------ |
------------------ |
|
|
|
Rupees |
1,341,852 |
1,220,246 |
|
|
|
|
========== |
========== |
|
|
|
|
| 5.1
Market value of net assets at the close of the year |
|
|
|
|
|
|
|
| Investment
in quoted shares |
|
|
3 |
42,760,868 |
41,051,568 |
|
| Long
term deposit |
|
|
|
100,000 |
100,000 |
|
|
|
|
|
| Current assets |
|
|
|
|
| Dividend
receivable |
|
|
|
640,920 |
962,000 |
|
| Prepaid
expenses |
|
|
|
7,500 |
20,000 |
|
| Current
account with the ICP |
|
|
|
10,778,328 |
9,128,251 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
11,426,748 |
10,110,251 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
54,287,616 |
51,261,819 |
|
|
|
|
|
|
| Current
liabilities |
|
|
|
|
|
| Accrued
expenses |
|
|
|
19,338 |
50,116 |
|
| Unclaimed
dividend |
|
|
|
436,610 |
2,191,164 |
|
| Taxation - net |
|
|
|
4,486 |
260,286 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
460,434 |
2,501,566 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
53,827,182 |
48,760,253 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| 1999:
(53,827,182 x 40,000,000) |
|
|
|
@3% = |
1,291,852 |
|
| 50,000,000 |
|
|
|
|
========== |
|
|
|
|
|
| 6.
AUDITORS' REMUNERATION |
|
|
|
|
|
Taseer Hadi |
Ford, Rhodes, |
1999 |
1998 |
|
|
|
|
|
|
Khalid & Co. |
Robson, |
|
|
|
|
|
|
Morrow |
|
|
|
|
|
|
|
|
| Audit fee |
|
|
2,950 |
2,950 |
5,900 |
5,130 |
|
|
| Tax services |
|
|
8,830 |
-- |
8,830 |
7,000 |
|
|
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
|
|
Rupees |
11,780 |
2,950 |
14,730 |
12,130 |
|
|
|
|
========== |
========== |
========== |
========== |
|
|
| 7.
OTHER EXPENSES |
|
| Printing
and stationery |
|
|
|
5,980 |
43,516 |
|
| Advertising
and publicity |
|
|
|
3,185 |
17,276 |
|
| Professional
charges |
|
|
|
3,559 |
12,817 |
|
| Listing
fee - stock exchanges |
|
|
|
46,250 |
46,250 |
|
| Central
Depository Company |
|
|
|
24,998 |
12,500 |
|
| Computer
related expenses |
|
|
|
44,520 |
50,989 |
|
| Postage |
|
|
|
14,716 |
41,596 |
|
| Professional tax |
|
|
|
38,000 |
38,000 |
|
| Share
transfer stamps |
|
|
|
15,390 |
657 |
|
| Bank charges |
|
|
|
2,563 |
5,163 |
|
| Excise duty |
|
|
|
-- |
2,800 |
|
| Miscellaneous |
|
|
|
4,860 |
1,359 |
|
|
|
|
------------------ |
------------------ |
|
|
|
Rupees |
204,021 |
272,923 |
|
|
|
|
========== |
========== |
|
|
| 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 EARNING PER SHARE (CERTIFICATE) |
|
| Income
for the year |
|
|
Rupees |
2,314,995 |
9,112,019 |
|
|
|
|
========== |
========== |
|
| Number
of certificates |
|
|
|
5,000,000 |
5,000,000 |
|
|
|
|
========== |
========== |
|
| Basic
earning per share (certificate) |
|
|
0.46 |
1.82 |
|
|
|
|
========== |
========== |
|
|
|
|
|
| Issued, subscribed |
General |
Unappropriated |
|
| & paid-up capital |
reserve |
Income |
Total |
