| Ninth ICP Mutual Fund |
|
|
|
|
|
|
|
|
|
|
| Annual
Report 1999 |
|
|
|
|
|
If undelivered 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 JUNE 30, 1999 |
|
|
|
|
|
|
Note |
1999 |
1998 |
|
|
|
|
Rupees |
Rupees |
|
| NET ASSETS |
|
|
|
| Investment
in quoted shares |
|
|
95,965,968 |
117,433,807 |
|
| [Market
value Rs. 145,268,209 (1998: Rs. 178,978,910)] |
|
|
|
|
|
|
| Security deposit |
|
|
|
100,000 |
100,000 |
|
|
|
|
|
|
|
| Current assets |
|
|
|
| Dividend
receivable |
|
|
775,000 |
630,000 |
|
| Prepaid
expenses |
|
|
7,500 |
20,000 |
|
| Current
account with the Investment Corporation |
|
|
|
|
| of
Pakistan (ICP) |
|
|
4,878,664 |
-- |
|
| Taxation - net |
|
|
114,132 |
542 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
5,775,296 |
650,542 |
|
|
|
|
|
|
| Current
liabilities |
|
|
|
| Accrued
expenses |
|
19,338 |
55,538 |
|
| Unclaimed
dividend |
|
1,958,569 |
21,391,519 |
|
| Dividend
payable |
|
25,000,000 |
15,000,000 |
|
| Current
account with the Investment Corporation |
|
|
|
| of
Pakistan (ICP) |
|
-- |
3,554,019 |
|
|
|
------------------ |
------------------ |
|
|
|
26,957,907 |
40,001,076 |
|
|
|
------------------ |
------------------ |
|
|
|
(21,182,611) |
(39,350,534) |
|
|
|
------------------ |
------------------ |
|
|
|
74,883,357 |
78,183,273 |
|
|
|
|
========== |
========== |
|
| 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 |
|
|
|
24,883,357 |
28,183,273 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
74,883,357 |
78,183,273 |
|
|
|
|
========== |
========== |
|
|
| 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 JUNE 30, 1999 |
|
|
|
|
1999 |
1998 |
|
|
|
Rupees |
Rupees |
|
|
|
|
|
| INCOME |
|
|
|
| Dividend |
|
|
|
8,034,969 |
9,780,016 |
|
| Return
on current account with the ICP |
|
|
661,462 |
-- |
|
| profit
on sale of investment |
|
|
|
20,267,310 |
62,524,172 |
|
| Other income |
|
|
|
4,526 |
9,539 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
28,968,267 |
72,313,727 |
|
|
|
|
|
| EXPENDITURE |
|
|
|
|
| Management
fee |
|
5 |
3,630,454 |
3,856,026 |
|
| Auditors'
remuneration |
|
6 |
14,730 |
12,130 |
|
| Return
on current account with the ICP |
|
|
-- |
2,631,734 |
|
| Diminution
in the value of investment |
|
|
3,446,400 |
-- |
|
| Other expenses |
|
|
|
|
|
|
7 |
290,189 |
290,676 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
7,381,773 |
6,790,566 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
21,586,494 |
65,523,161 |
|
| Write
Back Of Provision In Respect Of Golden |
|
|
| Handshake
Expenses |
|
|
|
-- |
120,306 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
21,586,494 |
65,649,467 |
|
| INCOME
BEFORE TAXATION |
|
|
|
|
|
|
|
|
| TAXATION
- Current |
|
|
8 |
-- |
495,000 |
|
|
| - Prior |
|
|
|
(113,590) |
-- |
|
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(113,590) |
495,000 |
|
|
|
|
|
|
|
| NET
INCOME AFTER TAXATION |
|
|
21,700,084 |
65,154,467 |
|
| UNAPPROPRIATED
INCOME BROUGHT FORWARD |
|
28,183,273 |
3,028,806 |
|
|
|
|
|
------------------ |
------------------ |
|
| AVAILABLE
FOR APPROPRIATION |
|
|
49,883,357 |
68,183,273 |
|
|
|
|
|
------------------ |
------------------ |
|
| Interim
dividend Nil (1998: @50%) |
|
|
-- |
25,000,000 |
|
| Final
dividend 50% (1998: @30%) |
|
|
25,000,000 |
15,000,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
25,000,000 |
40,000,000 |
|
|
|
|
|
------------------ |
------------------ |
|
| UNAPPROPRIATED
INCOME CARRIED FORWARD |
|
24,883,357 |
28,183,273 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| Basic
earning per share (certificate) |
|
9 |
4.34 |
13.03 |
|
|
|
|
|
|
========== |
========== |
|
|
|
|
| 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 JUNE 30, 1999 |
|
|
|
|
Note |
1999 |
1998 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
|
| Cash
generated from operations |
|
10 |
3,935.42 |
5,182,180 |
|
| Sale
of investment |
|
40,845,699 |
76,571,065 |
|
| Purchase
of investment |
|
(2,556,950) |
(42,388,060) |
|
| Taxes paid |
|
-- |
(571,720) |
|
|
|
------------------ |
------------------ |
|
| Net
cash inflow from operating activities |
|
42,224,171 |
38,793,465 |
|
|
|
|
|
|
|
| CASH
FLOW FROM INVESTING ACTIVITIES |
|
|
| Return
on current account with ICP |
|
661,462 |
(2,631,734) |
|
| Security
deposit |
|
-- |
(100,000) |
|
|
|
------------------ |
------------------ |
|
| Net
cash inflow from investing activities |
|
661,462 |
(2,731,734) |
|
|
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
|
| Dividend paid |
|
(34,452,950) |
(23,050,023) |
|
|
|
------------------ |
------------------ |
|
| Net
cash used in financing activities |
|
(34,452,950) |
(23,050,023) |
|
|
|
|
------------------ |
------------------ |
|
| NET
INCREASE IN CASH EQUIVALENT |
|
|
8,432,683 |
13,011,708 |
|
|
|
|
|
|
| CASH
EQUIVALENT AT THE BEGINNING OF THE YEAR |
|
(3,554,019) |
(16,565,727) |
|
|
|
|
------------------ |
------------------ |
|
| CASH
EQUIVALENT AT THE END OF THE YEAR |
11 |
4,878,664 |
(3,554,019) |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| 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 Ninth ICP Mutual Fund was |
|
| established
by the Investment Corporation of Pakistan (ICP), acting as its trustee, on
June 17, 1976 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, 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 |
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 |
|
|
|
|
BANKS/INVESTMENT BANKS |
|
| 100,000 |
100,000 |
Al-Faysal Bank Ltd. |
|
30.25 |
3,025,000 |
9.35 |
935,000 |
30.25 |
3,025,000 |
9.27 |
927,000 |
| 105,000 |
105,000 |
Askari Commercial Bank
Ltd. |
|
12.07 |
1,267,350 |
12.07 |
1,267,350 |
31.42 |
3,300,000 |
13.75 |
1,443,750 |
| 105,429 |
115,000 |
Bank of Punjab Ltd. |
|
21.81 |
2,299,587 |
13.72 |
1,446,486 |
26.39 |
3,035,000 |
6.87 |
790,050 |
| 100,000 |
100,000 |
Muslim Commercial Bank
Ltd. |
|
37.25 |
3,725,000 |
20.27 |
2,027,000 |
37.25 |
3,725,000 |
18.75 |
1,875,000 |
|
|
|
|
TEXTILE SPINNING |
|
|
| 50,000 |
50,000 |
Nishat Ch. Textile Ltd. |
|
8.35 |
417,500 |
8.35 |
417,500 |
24.00 |
1,200,000 |
9.00 |
450,000 |
|
|
|
|
|
|
|
|
|
|
|
|
TEXTILE COMPOSITE |
|
|
| 50,000 |
50,000 |
Saphire Fabrics Ltd. |
|
37.25 |
1,862,500 |
37.50 |
1,875,000 |
37.25 |
1,862,500 |
29.00 |
1,450,000 |
|
|
|
|
|
|
|
|
|
|
SUGAR |
|
|
| -- |
57,461 |
Habib Sugar Mills Ltd.
(Rs. 5) |
|
-- |
-- |
-- |
-- |
4.72 |
271,585 |
7.50 |
430,957 |
|
|
|
|
|
|
|
|
|
|
CEMENT |
|
|
| 100,000 |
100,000 |
Gharibwal Cement
Industries Ltd. |
|
19.40 |
1,940,000 |
4.25 |
425,000 |
19.40 |
1,940,000 |
5.00 |
500,000 |
| 100,000 |
100,000 |
Pak Land Cement Ltd. |
|
13.01 |
1,301,000 |
4.75 |
475,000 |
13.01 |
1,301,000 |
4.10 |
410,000 |
|
|
|
|
TOBACCO |
|
|
| 25,000 |
25,000 |
Pak Tobacco Co. Ltd. |
|
12.75 |
318,750 |
12.75 |
318,750 |
38.00 |
950,000 |
21.00 |
525,000 |
|
|
|
|
|
|
|
|
|
|
|
|
FUEL AND ENERGY |
|
|
| 100,000 |
100,000 |
Hub Power Company Ltd. |
|
38.90 |
3,890,000 |
14.07 |
1,407,000 |
38.90 |
3,890,000 |
12.37 |
1,237,000 |
| 158,321 |
158,321 |
Karachi Electric
Corporation Ltd. |
|
12.43 |
1,969,202 |
8.67 |
1,372,643 |
12.43 |
1,969,202 |
8.42 |
1,333,063 |
| 564,086 |
37,124 |
Shell Pakistan Ltd. |
|
79.75 |
44,988,084 |
163.00 |
91,946,018 |
34.38 |
12,761,149 |
446.50 |
54,369,666 |
| -- |
326,062 |
Shell Pakistan Ltd. (RP) |
|
-- |
-- |
-- |
-- |
130.00 |
42,388,060 |
202.00 |
65,864,524 |
| 1,000,260 |
2,044,828 |
Sui Southern Gas Co. Ltd. |
|
4.30 |
4,304,898 |
8.60 |
8,602,236 |
4.73 |
9,675,813 |
9.00 |
18,403,452 |
| 6,000 |
-- |
Sui Southern Gas Co. Ltd.
(RP) |
|
49.41 |
296,500 |
92.75 |
556,500 |
-- |
-- |
-- |
-- |
|
|
|
|
TRANSPORT AND
COMMUNICATION |
|
| -- |
100,000 |
P.T.C.L. "A" |
|
-- |
-- |
-- |
-- |
32.61 |
3,261,000 |
15.77 |
1,577,000 |
|
|
|
|
|
|
|
|
|
|
CHEMICAL AND
PHARMACEUTICAL |
|
| 11,500 |
10,000 |
BOC Pakistan Ltd. |
|
129.57 |
1,490,000 |
81.00 |
931,500 |
149.01 |
1,490,100 |
90.00 |
900,000 |
| 83,784 |
129,820 |
Engro Chemicals
(Pakistan) Ltd. |
|
10.79 |
904,500 |
73.67 |
6,172,367 |
12.95 |
1,681,661 |
51.25 |
6,653,275 |
| 150,000 |
105,000 |
Fauji Fertilizer Company
Ltd. |
|
63.36 |
9,504,600 |
41.17 |
6,175,500 |
68.90 |
7,244,150 |
51.37 |
5,393,850 |
| -- |
130 |
ICI Pakistan Ltd. |
|
-- |
-- |
-- |
-- |
9.23 |
1,200 |
11.62 |
1,511 |
|
|
|
|
PAPER AND BOARD |
|
|
| 461,399 |
401,217 |
Packages Ltd. |
|
|
27.00 |
12,461,387 |
41.00 |
18,917,359 |
31.05 |
12,461,387 |
36.00 |
14,443,812 |
|
|
|
|
------------------ |
|
------------------ |
|
------------------ |
|
------------------ |
|
|
95,965,968 |
|
145,268,209 |
|
117,433,807 |
|
178,978,910 |
|
|
========== |
|
========== |
|
========== |
|
========== |
|
| *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 AND RESERVES |
|
|
|
Issued |
|
|
|
subscribed & |
Unappropriated |
|
|
|
paid-up capital |
Income |
Total |
|
|
Rupees |
Rupees |
Rupees |
|
|
| Balance
as at June 30, 1997 |
|
50,000,000 |
3,028,806 |
53,028,806 |
|
| Income
for the year |
|
-- |
65,154,467 |
65,154,467 |
|
| Dividend |
|
|
-- |
(40,000,000) |
(40,000,000) |
|
|
|
|
------------------ |
------------------ |
------------------ |
|
| Balance
as at June 30, 1998 |
|
50,000,000 |
28,183,273 |
78,183,273 |
|
| Income
for the year |
|
-- |
21,700,084 |
21,700,084 |
|
| Dividend |
|
|
-- |
(25,000,000) |
(25,000,000) |
|
|
|
|
------------------ |
------------------ |
------------------ |
|
| Balance
as at June 30, 1999 |
|
50,000,000 |
24,883,357 |
74,883,357 |
|
|
|
|
========== |
========== |
========== |
|
|
|
|
|
|
| 5.
MANAGEMENT FEE |
|
| The
management fee is payable to Investment Corporation of Pakistan @1/2% per
annum on 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. 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 |
3,580,454 |
3,806,026 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
3,630,454 |
3,856,026 |
|
|
|
|
|
========== |
========== |
|
|
|
|
| 5.1
Market value of net assets at the close of the year |
|
|
|
| Investment
in quoted shares |
|
3 |
145,268,209 |
178,978,910 |
|
| Long
term deposit |
|
100,000 |
100,000 |
|
|
|
|
|
|
|
| Current assets |
|
|
|
|
|
| Dividend
receivable |
|
775,000 |
630,000 |
|
| Prepaid
expenses |
|
|
7,500 |
20,000 |
|
| Current
account with the ICP |
|
|
4,878,664 |
302,007 |
|
| Taxation - net |
|
|
114,132 |
542 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
5,775,296 |
952,549 |
|
|
|
|
|
|
|
| Current
liabilities |
|
|
|
|
| Accrued
expenses |
|
19,338 |
55,538 |
|
| Unclaimed
dividend |
|
1,938,569 |
21,391,519 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
1,957,907 |
21,447,057 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
149,185,598 |
158,584,402 |
|
|
|
|
========== |
========== |
|
| 8.
AUDITORS' REMUNERATION |
|
|
|
|
|
Taseer Hadi |
Ford, Rhodes, |
|
|
|
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 |
|
|
|
|
========== |
========== |
========== |
========== |
|
|
|
|
|
|
|
|
|
|
1999 |
1998 |
|
|
|
Note |
Rupees |
Rupees |
|
|
|
| 7.
OTHER EXPENSES |
|
| Printing
and stationery |
|
|
13,483 |
44,632 |
|
| Advertising
and publicity |
|
|
38,193 |
17,276 |
|
| Professional
charges |
|
|
3,558 |
12,817 |
|
| Listing
fee - stock exchanges |
|
|
46,250 |
46,250 |
|
| - Central Depository
Company |
|
24,998 |
12,500 |
|
| Computer
related expenses |
|
|
58,805 |
52,999 |
|
| Postage |
|
|
|
14,716 |
41,110 |
|
| Professional tax |
|
|
|
38,000 |
38,000 |
|
| Share
transfer stamps |
|
|
-- |
4,645 |
|
| Bank charges |
|
|
|
45,726 |
15,488 |
|
| Excise duty |
|
|
|
1,600 |
3,600 |
|
| Miscellaneous |
|
|
|
4,860 |
1,359 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
290,189 |
290,676 |
|
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| 8. TAXATION |
|
|
| The
income-tax assessment of the Fund have been finalised upto and including
assessment year 1998-99. However, |
|
| the
Fund has filed appeals before the Commissioner of Income Tax (Appeals),
relating to assessment years 1993-94, |
|
| 1994-95,
1995-96, 1996-97 and 1998-99. In case of any adverse decision in respect
appeals for the above referred |
|
| assessment
years, no material tax liability is expected to arise. |
|
|
|
|
|
|
| 9.
BASIC EARNING PER CERTIFICATE |
|
| Income
for the year |
|
21,700,084 |
65,154,467 |
|
|
|
========== |
========== |
|
| Number
of Certificates |
|
5,000,000 |
5,000,000 |
|
|
|
========== |
