| Ninth ICP Mutual Fund |
|
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|
|
|
|
|
|
| 24th
Annual Report-2000 |
|
|
|
| INVESTMENT
CORPORATION OF PAKISTAN |
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|
If undelivered please
return to: |
|
| HEAD OFFICE: |
|
MUTUAL FUNDS DEPARTMENT: |
|
| NBP
Building, 5th Floor |
Dawood Centre, Ground
Floor |
|
| I.I.
Chundrigar Road, Karachi. |
Moulvi Tamizuddin Khan
Road, Karachi. |
|
| Phones:
9212360-69 |
Phones: 5686014-15,
5685104-05 |
|
| Telefax;
92-21-9212388-89 |
Telefax: 92-21-9202783 |
|
| E-mail:
icp@paknet2-3.pct.pk |
E-mail:
icp@paknet2-3.pct.pk |
|
|
|
| Directors'
Report to the Certificate Holders |
|
| for
the Year Ended June 30, 2000 |
|
|
|
| The
Mutual Fund's 24th Annual Report for the year ended June 30, 2000 is hereby
being presented for your review. |
|
|
| Financial
Results |
|
| The
financial results of the Mutual Fund for the year under review are summarized
as under: |
|
|
|
|
(Rs. '000') |
|
|
| Net
Income before Taxation |
|
11,640 |
|
| Taxation |
|
|
-- |
|
|
|
|
------------------ |
|
| Net
Income after Taxation |
|
11,640 |
|
| Un-appropriated
income B/F |
|
24,883 |
|
|
|
|
------------------ |
|
| Available
for Appropriation |
|
36,523 |
|
| Cash
Dividend (50%) |
|
25,000 |
|
| Un-appropriated
Income carried forward to |
|
| Revenue
Reserve |
|
11,523 |
|
|
|
|
| Basic
Earning per certificate (in rupees) |
|
2.23 |
|
|
| Mutual
Fund Operation |
|
| The
policy measures taken by the present Government for the implementation of its
economic and structural reforms has helped in |
|
| improving
the stock market situation. The stock market index after remaining stable
between 1100-1200 points from July to |
|
| October
1999 started rising from November and continued upward trend till March 2000
when it went as high as 2054 points. |
|
| However,
the upward trend could not be sustained beyond March 2000 and the index
dipped at 1521 points as on June 30, 2000. |
|
|
| During
the year under review the Ninth Mutual Fund earned total income of Rs.20.72
million including dividend income of Rs.11.52 |
|
| million.
Net income for the year after incurring expenditure of Rs.5.50 million and
Rs.3.57 million on account of diminution in |
|
| the
value of investments amounted to Rs.11.64 million. NAV's worked out at
Rs.43.22 per certificate as compared to Rs.24.82 |
|
| last year. |
|
|
| Future
Prospects |
|
| The
stock market situation is likely to improve due to Government's steady
measures to strengthen capital market. Such measures |
|
| include
agreement with IMF, acceleration of the privatisation process, expected
resolution of Hubco dispute and average corporate |
|
| earnings
growth of 14% expected for FY2001 etc. Your management will closely monitor
the situation to maximize return on its |
|
| investment
portfolio. |
|
|
| Pattern
of Certificate Holdings |
|
| The
pattern of certificate holding is annexed herewith. |
|
|
| Auditors |
|
| Our
present auditors M/s. Taseer, Hadi. Khalid & Company and M/s. Ford,
Rhodes, Robson, Morrow retire and being eligible |
|
| offer
themselves for re-appointment. |
|
|
| Acknowledgement |
|
| In
the end we wish to express our thanks to all our certificate holders, bankers
and other financial institutions for their continued |
|
| support. |
|
|
|
|
for the Investment Corporation of Pakistan |
|
|
|
|
|
|
ISTAQBAL MEHDI |
|
SYED LIAQUAT ALI |
|
M. SALEEM SHAIKH |
|
|
Managing Director |
|
Director |
|
Director |
|
|
| Karachi:
7-12-2000 |
|
|
|
| BALANCE
SHEET AS A T 30 JUNE 2000 |
|
|
|
|
Note |
2000 |
1999 |
|
|
|
|
Rupees |
Rupees |
|
|
|
| NET ASSETS |
|
| Investments in quoted shares |
|
3 |
85,724,585 |
95,965,968 |
|
| [Market
value Rs.215,919,172 (1999: Rs.145,268,209)] |
|
|
| Long term deposit |
|
100,000 |
100,000 |
|
|
|
| Current assets |
|
| Dividend
receivable |
|
|
900,000 |
775,000 |
|
| Prepaid
expenses |
|
|
-- |
7,500 |
|
|
|
|
| Current
account with the Investment Corporation |
|
| of Pakistan (ICP) |
|
1,037,569 |
4,878,664 |
|
|
|
|
| Advance
tax - net |
|
446,288 |
114,132 |
|
| Cash at bank |
|
|
524,980 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
2,908,837 |
5,775,296 |
|
|
|
|
|
|
| Current
liabilities |
|
|
| Accrued
expenses |
|
|
13,400 |
19,338 |
|
| Dividend
payable |
|
|
25,000,000 |
25,000,000 |
|
| Provision
for taxation - net |
|
|
-- |
-- |
|
| Unclaimed
dividend |
|
|
2,196,894 |
1,938,569 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
27,210,294 |
26,957,907 |
|
|
------------------ |
------------------ |
|
|
|
|
(24,301,457) |
(21,182,611) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
61,523,128 |
74,883,357 |
|
|
========== |
========== |
|
|
| FINANCED BY |
|
| Capital
and Reserves |
|
| Capital |
|
| Authorised |
|
| 5,000,000
(1999: 5,000,000) |
|
| Certificates of
Rs. 10/- each |
|
50,000,000 |
50,000,000 |
|
|
========== |
========== |
|
| Issued,
subscribed and paid-up |
|
| 5,000,000
(1999: 5,000,000) |
|
| Certificates
of Rs. 10/- each fully paid in cash |
|
50,000,000 |
50,000,000 |
|
|
| Revenue
reserve |
|
| Unappropriated income |
|
11,523,128 |
24,883,357 |
|
|
------------------ |
------------------ |
|
|
|
61,523,128 |
74,883,357 |
|
|
========== |
========== |
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
|
for the Investment Corporation of Pakistan |
|
|
|
|
|
|
ISTAQBAL MEHDI |
|
SYED LIAQUAT ALI |
|
M. SALEEM SHAIKH |
|
|
Managing Director |
|
Director |
|
Director |
|
|
|
| INCOME
AND EXPENDITURE ACCOUNT |
|
| FOR
THE YEAR ENDED 30 JUNE 2000 |
|
|
|
|
Note |
2000 |
1999 |
|
|
|
|
Rupees |
Rupees |
|
|
|
| INCOME |
|
| Dividend |
|
11,524,745 |
8,034,969 |
|
| Return
un current account with ICP |
|
517,941 |
661,462 |
|
| Profit
on sale of investments |
|
8,675,474 |
20,267,310 |
|
| Miscellaneous |
|
-- |
4,526 |
|
|
|
------------------ |
------------------ |
|
|
|
20,718,160 |
28,968,267 |
|
|
|
| EXPENDITURE |
|
|
|
| Management fee |
|
4 |
5,251,225 |
3,630,454 |
|
| Auditors'
remuneration |
|
5 |
227,511 |
19,590 |
|
| Diminution
in the value of investments |
|
3,567,600 |
3,446,400 |
|
| Other expenses |
|
6 |
236,813 |
285,329 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
9,078,389 |
7,381,773 |
|
|
|
|
------------------ |
------------------ |
|
| NET
INCOME BEFORE TAXATION |
|
11,639,771 |
21,586,494 |
|
|
|
|
|
|
| TAXATION |
|
|
|
| - Prior |
|
7 |
-- |
(113,590) |
|
|
|
|
------------------ |
------------------ |
|
| NET
INCOME FOR THE YEAR |
|
|
11,639,771 |
21,700,084 |
|
|
| UNAPPROPRIATED
INCOME BROUGHT FORWARD |
24,883,357 |
28,183,273 |
|
|
|
|
------------------ |
------------------ |
|
| AVAILABLE
FOR APPROPRIATION |
|
36,523,128 |
49,883,357 |
|
|
|
------------------ |
------------------ |
|
| Final
dividend @ 50% (1999: 50%) |
|
25,000,000 |
25,000,000 |
|
|
|
------------------ |
------------------ |
|
| UNAPPROPRIATED
INCOME CARRIED FORWARD |
11,523,128 |
24,883,357 |
|
| TO
REVENUE RESERVE |
|
========== |
========== |
|
|
| BASIC
EARNINGS PER CERTIFICATE |
8 |
2.33 |
4.34 |
|
|
|
|
========== |
========== |
|
|
|
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
|
for the Investment Corporation of Pakistan |
|
|
|
|
|
|
ISTAQBAL MEHDI |
|
SYED LIAQUAT ALI |
|
M. SALEEM SHAIKH |
|
|
Managing Director |
|
Director |
|
Director |
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED 30 JUNE 2000 |
|
|
|
Note |
2000 |
1999 |
|
|
|
Rupees |
Rupees |
|
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
| Cash generated from operations |
|
9 |
5,890,518 |
3,935,422 |
|
| Sale
of investments |
|
15,559,257 |
40,845,699 |
|
| Purchase
of investments |
|
(210,000) |
(2,556,950) |
|
| Taxes paid |
|
|
(332,156) |
-- |
|
|
|
------------------ |
------------------ |
|
| Net
cash inflow from operating activities |
|
20,907,619 |
42,224,171 |
|
|
|
========== |
========== |
|
|
|
|
| CASH
FLOW FROM INVESTING ACTIVITIES |
|
| Return
on current account with ICP |
|
517,941 |
661,462 |
|
|
|
------------------ |
------------------ |
|
| Net
cash inflow from investing activities |
|
517,941 |
661,462 |
|
|
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
| Dividend paid |
|
|
(24,741,675) |
(34,452,950) |
|
|
|
|
|
------------------ |
------------------ |
|
|
| Net
cash out flow from financing activities |
|
(24,741,675) |
34,452,950 |
|
|
|
|
|
------------------ |
------------------ |
|
|
| NET
(DECREASE) / INCREASE IN CASH & CASH EQUIVALENTS |
(3,316,115) |
8,432,683 |
|
|
| CASH
EQUIVALENTS AT THE BEGINNING OF THE YEAR |
4,878,664 |
(3,554,019) |
|
|
|
|
|
------------------ |
------------------ |
|
|
| CASH
& CASH EQUIVALENTS AT THE END OF THE YEAR |
10 |
1,562,549 |
4,878,664 |
|
|
|
|
|
========== |
========== |
|
|
|
|
for the Investment Corporation of Pakistan |
|
|
|
|
|
|
ISTAQBAL MEHDI |
|
SYED LIAQUAT ALI |
|
M. SALEEM SHAIKH |
|
|
Managing Director |
|
Director |
|
Director |
|
|
|
| STATEMENT
OF CHANGES 1N EQUITY |
|
| FOR
THE YEAR ENDED 30 JUNE 2000 |
|
|
|
Issued, |
Unappropriated |
Total |
|
|
Subscribed and |
Income |
|
|
|
paid up capital |
|
|
|
|
|
|
Rupees |
Rupees |
Rupees |
|
|
|
|
|
|
| Balance
as at 30 June 1998 |
|
50,000,000 |
28,183,273 |
78,183,273 |
|
| Net
Income for the year |
|
-- |
21,700,084 |
21,700,084 |
|
| Dividend |
|
-- |
(25,000,000) |
(25,000,000) |
|
|
------------------ |
------------------ |
------------------ |
|
| Balance
as at 30 June 1999 |
|
50,000,000 |
24,883,357 |
74,883,357 |
|
|
|
|
| Net Income for the year |
|
-- |
11,639,771 |
11,639,771 |
|
| Dividend |
|
-- |
(25,000,000) |
(25,000,000) |
|
|
|
------------------ |
------------------ |
------------------ |
|
| Balance
as at 30 June 2000 |
|
50,000,000 |
11,523,128 |
61,523,128 |
|
|
|
========== |
========== |
========== |
|
|
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
|
for the Investment Corporation of Pakistan |
|
|
|
|
|
|
ISTAQBAL MEHDI |
|
SYED LIAQUAT ALI |
|
M. SALEEM SHAIKH |
|
|
Managing Director |
|
Director |
|
Director |
|
|
|
| NOTES
TO THE ACCOUNTS |
|
| FOR
THE YEAR ENDED 30 JUNE 2000 |
|
|
| 1.
THE FUND AND ITS OPERATIONS |
|
| In
order to broaden the base of investment and to encourage investment in shares
of company 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, 1996. The Fund is listed
on three stock exchanges in Pakistan. |
|
|
| 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POL1CIES |
|
|
| 2.1
Accounting convention |
|
| These
accounts have been prepared under the historical cost convention without
taking any effect of inflation. |
|
|
| 2.2 Investments |
|
|
| i)
Investment are valued at average cost where cost is lower than the market
value, determined on the basis of the average of |
|
| the
highest and the 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
revised book value; |
|
|
| iii)
profit or loss on sale of investments is accounted for in the year in which
it arise. |
|
|
| 2.3 Taxation |
|
| Provision
for taxation is based on taxable income at the current rates for taxation
after taking into account tax credits available, if any. |
|
|
|
|
| 2.4
Revenue recognition |
|
| i)
Dividend income is accounted for at the closure of share transfer books of
the company declaring dividend; |
|
|
|
|
| ii)
Return on current account with ICP is accounted for on the basis of PLS rate
declared half yearly by the bank on PLS |
|
| bank accounts |
|
|
| 3.
INVESTMENTS IN QUOTED SHARES |
|
| Unless
stated otherwise. the holdings are in the Ordinary shares of Rs. 10/- each. |
|
|
| 2000 |
1999 |
|
2000 |
|
1999 |
|
| *Holding |
Name of company |
Book value |
Market value |
Book value |
Market value |
| No. of shares |
|
**Rate |
Amount |
**Rate |
Amount |
**Rate |
Amount |
**Rate |
Amount |
|
|
Rupees |
|
Rupees |
|
Rupees |
|
Rupees |
|
INVESTMENT BANKS |
|
| 100,000 |
140,750 |
Al-Faysal Bank Ltd. |
30.25 |
3,025,000 |
9.23 |
923,000 |
30.25 |
3,025,000 |
9.35 |
935,000 |
| 105,000 |
105,000 |
Askari Commercial Bank
Ltd. |
6.90 |
724,200 |
7.93 |
832,800 |
12.07 |
1,267,350 |
12.07 |
1,267,350 |
| -- |
105,429 |
Bank of Punjab Ltd. |
-- |
-- |
-- |
-- |
21.81 |
2,299,587 |
13.72 |
1,446,486 |
| 100,000 |
100,000 |
Muslim Commercial Bank
Ltd. |
37.25 |
3,725,000 |
31.13 |
3,113,000 |
37.25 |
3,725,000 |
20.27 |
2,027,000 |
|
|
|
|
TEXTILE SPINNING |
|
| 70,000 |
50,000 |
Umer Fabrics Limited |
5.96 |
417,500 |
28.50 |
1,995,000 |
8.35 |
417,500 |
8.35 |
417,500 |
|
|
|
|
|
|
|
|
|
|
|
TEXTILE COMPOSITE |
|
| 40,000 |
50,000 |
Saphire Fabrics Ltd. |
37.25 |
1,490,000 |
49.50 |
1,980,000 |
37.25 |
1,862,500 |
37.50 |
1,875,000 |
|
|
|
|
|
|
|
|
|
|
|
CEMENT |
|
|
| 40,000 |
100,000 |
Gharibwal Cement
Industries Ltd. |
19.40 |
776,000 |
8.10 |
324,000 |
19.40 |
1,940,000 |
4.25 |
425,000 |
| 100,000 |
100,000 |
Pak Land Cement Ltd. |
13.01 |
1,301,000 |
6.10 |
610,000 |
13.01 |
1,301,000 |
4.75 |
475,000 |
|
|
|
|
|
|
|
|
|
|
|
TOBACCO |
|
|
| -- |
25,000 |
Pak Tobacco Co. Ltd. |
-- |
-- |
-- |
-- |
12.75 |
318,750 |
12.75 |
318,750 |
|
|
|
|
FUEL AND ENERGY |
|
| 110,000 |
100,000 |
Hub Power Company Ltd. |
37.27 |
4,100,000 |
14.70 |
1,617,000 |
38.90 |
3,890,000 |
14.07 |
1,407,000 |
| 158,321 |
158,321 |
Karachi Electric Supply
Corporation Ltd. |
12.44 |
1,969,202 |
9.53 |
1,508,799 |
12.44 |
1,969,202 |
8.67 |
1,372,643 |
| 7,200 |
-- |
Pakistan State Oil |
41.18 |
296,500 |
163.10 |
1,174,320 |
-- |
-- |
-- |
-- |
| 547,082 |
564,086 |
Shell Pakistan Ltd. |
79.75 |
43,632,334 |
267.63 |
146,415,556 |
79.75 |
44,988,084 |
163.00 |
91,946,018 |
| 975,299 |
1,000,260 |
Sui Southern Gas Co. Ltd. |
3.74 |
3,650,398 |
16.38 |
15,975,398 |
4.30 |
4,304,898 |
8.60 |
8,602,236 |
| -- |
6,000 |
Sui Southern Gas Co. Ltd.
(RP) |
-- |
-- |
-- |
-- |
49.42 |
496,500 |
92.75 |
556,500 |
|
|
|
|
CHEMICAL AND
PHARMACEUTICALS |
|
|
| 11,500 |
11,500 |
BOC Pakistan Ltd. |
129.57 |
1,490,100 |
114.00 |
1,311,000 |
129.57 |
1,490,100 |
81.00 |
931,500 |
| 78,784 |
83,784 |
Engro Chemicals Pakistan
Ltd. |
10.80 |
850,510 |
59.33 |
4,674,255 |
10.80 |
904,510 |
73.67 |
6,172,367 |
| 150,000 |
150,000 |
Fauji Fertilizer Company
Limited |
39.58 |
5,937,000 |
39.58 |
5,937,000 |
63.36 |
9,504,600 |
41.17 |
6,175,500 |
|
|
|
|
|
|
|
PAPER AND BOARD |
|
|
|
| 456,897 |
461,399 |
Packages Ltd. |
|
27.01 |
12,339,841 |
60.25 |
27,528,044 |
27.01 |
12,461,387 |
41.00 |
18,917,359 |
|
|
|
|
------------------ |
|
------------------ |
|
------------------ |
|
------------------ |
|
|
|
Rupees |
85,724,85 |
|
215,919,172 |
|
95,965,968 |
|
145,268,209 |
|
|
|
|
========== |
|
========== |
|
========== |
|
========== |
|
|
|
|
|
|
| *
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.
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. |
|
|
|
|
|
|
|
Note |
2000 |
1999 |
|
|
|
Rupees |
Rupees |
|
|
|
| Management
fee on initial paid-up capital @ 1/2% |
|
50,000 |
50,000 |
|
|
|
| on
Rs. 10.00 million |
|
|
| Management
fee on capital raised in prior year through RI |
|
| @ 3% of net assets
market value of the fund in |
|
| proportion
of capital raised through RI to total |
4.1 |
5,201,225 |
3,580,454 |
|
| paid-up
capital, after charging management fee |
|
------------------ |
------------------ |
|
|
|
|
|
5,251,225 |
3,630,454 |
|
|
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| 4.1
Market value of net assets at the close of financial year |
|
| after
charging management fee |
|
|
|
| Investment
in quoted shares |
|
3 |
215,919,172 |
145,268,209 |
|
| Long
term deposit |
|
|
100,000 |
100,000 |
|
|
| Current assets |
|
|
|
| Dividend
receivable |
|
|
900,000 |
775,000 |
|
| Prepaid
expenses |
|
|
-- |
7,500 |
|
| Current
account with the ICP |
|
|
1,037,569 |
4,878,664 |
|
| Advance
tax - net |
|
|
446,288 |
114,132 |
|
| Cash at hank |
|
|
|
524,980 |
-- |
|
|
------------------ |
------------------ |
|
|
|
|
29,118,837 |
5,775,296 |
|
|
|
|
------------------ |
------------------ |
|
|
|
218,928,009 |
151,143,505 |
|
|
|
| Current
Liabilities |
|
| Accrued
expenses |
|
|
13,400 |
19,338 |
|
| Provision
for taxation-net |
|
-- |
-- |
|
| Unclaimed
dividend |
|
|
2,196,894 |
1,938,569 |
|
|
------------------ |
------------------ |
|
|
|
|
2,210,294 |
1,957,569 |
|
|
|
|
------------------ |
------------------ |
|
|
216,717,715 |
149185598 |
|
|
|
========== |
========== |
|
|
| 2000: (216,717,715) x
40,000,000 |
@ 3% = |
5,201,225 |
|
|
|
50,000,000 |
|
========== |
|
|
|
|
|
|
|
|
Ford, Rhodes, |
Taseer Hadi |
2000 |
1,999 |
|
|
|
Robson, Morrow |
Khalid & Co. |
Rupees |
Rupees |
|
|
|
Rupees |
Rupees |
|
|
|
|
|
|
|
|
|
| 5. AUDITORS REMUNERATION |
|
|
|
|
| Audit fee |
|
2950 |
2950 |
5,900 |
5,900 |
|
|
| Out-of-pocket
expenses |
708 |
708 |
1,416 |
4,860 |
|
|
| Tax services |
|
-- |
15435 |
15,435 |
8,830 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
|
|
3658 |
19093 |
22,751 |
19,590 |
|
|
|
========== |
========== |
========== |
========== |
|
|
|
|
|
|
|
