| United Trust of Pakistan Limited |
|
|
|
|
|
|
| Annual
Report 2001 |
|
|
|
| Mission
Statement |
|
| To
provide value to Unit Holders in terms of |
|
| investment
performance and customer service |
|
|
|
| Contents |
|
|
| Organization |
|
|
|
| Financial
Highlights |
|
|
| Report
of the Directors of the Management Company |
|
| Report
of the Trustee |
|
|
| Auditors'
Report to the Unit Holders |
|
| Financial
Statements |
|
|
| Statement
of Assets and Liabilities |
|
| Income
Statement |
|
|
| Distribution
Statement |
|
|
| Statement
of Movement in Unit Holders' Funds |
|
| Notes
to the Financial Statements |
|
| Performance
Table |
|
| Application
Form |
|
|
|
| Organization |
|
|
| Management
Company |
|
| ABAMCO
Limited |
|
| 1306-1307,
Chapal Plaza, Hasrat Mohani Road, Karachi-74000. |
|
| Tel:
(92-21) 2441311-14 Fax: (92-21) 2425652 |
|
| E-mail:
abamco@jahangirsiddiqui.com |
|
|
| Board
of Directors of the Management Company |
|
|
| Chairman |
|
Mr. Jahangir Siddiqui |
|
|
| Directors |
|
Mr. Abid Hussain Zuberi |
|
|
Mr. Mazhar ul Haq
Siddiqui |
|
|
Mr. Munaf Ibrahim |
|
|
Shaikh Mukhtar Ahmed |
|
|
Mr. William H. Kleh |
|
|
| Chief Executive |
|
Mr. M. Habib-ur-Rahman |
|
| Company
Secretary |
Saiyid Azher Alam |
|
|
|
|
| Trustee |
|
| Muslim
Commercial Financial Services (Private) Limited |
|
| 9th
Floor, Shaikh Sultan Trust Building, Beaumont Road, Karachi-75530. |
|
| Tel:
(92-21) 5676172-73, 5684326 Fax: (92-21) 5684458 |
|
|
| Transfer Agent |
|
| Muslim
Commercial Bank Limited |
|
| 9th
Floor, Shaikh Sultan Trust Building, Beaumont Road, Karachi-75530. |
|
| Tel:
(92-21) 5676172-73, 5684326 Fax: (92-21) 5684458 |
|
|
| Distribution
Companies |
|
| ABAMCO
Limited |
|
| Jahangir
Siddiqui & Co. Limited |
|
| Jahangir
Siddiqui Investment Bank Limited |
|
| Muslim
Commercial Bank Limited |
|
|
| Auditors |
|
| Ford,
Rhodes, Robson, Morrow - Chartered Accountants |
|
| Finlay
House, I. I. Chundrigar Road, Karachi-74000. |
|
|
| Legal Advisers |
|
| Bawaney
& Partners |
|
| 205-208,
Imperial Hotel Building, Q.R.5, M.T. Khan Road, Karachi-74200. |
|
|
|
|
| Report
of the Directors of the |
|
| Management
Company |
|
|
| The
Board of Directors of ABAMCO Limited, the management company of Unit Trust of
Pakistan |
|
| (UTP),
presents the Fourth Annual Report on the working of UTP together with the
audited accounts |
|
| for
the year ended June 30, 2001. |
|
|
| I.
INCOME OF UTP |
|
| The
income for the year ended June 30, 2001 was Rs. 87.049 million (2000: Rs.
109.303 million) after |
|
| providing
Rs. 2.003 million as provision for diminution in market value of investments
on individual |
|
| investment
basis (2000: Rs. 0.452 million). The income works out to Rs. 604 per unit
(2000: Rs. 1,235 |
|
| per
unit). The decline in income was mainly due to decline in income from gain on
sale of marketable |
|
| securities.
During the year the KSE - 100 index declined from 1,520.74 on June 30, 2000
to 1,366.44 |
|
| on
June 30, 2001, i.e., I 0.15%. The market remained bearish through out the
year, barring minor rallies. |
|
|
| During
the year ended June 2001, UTP earned Rs. 20.9 million from gain on sale of
marketable secu- |
|
| rities
as against Rs. 59.2 million last year. Other major contribution to the income
came from divi- |
|
| dends,
which provided Rs. 37. I million, up from Rs. 26 million in 2000. Mark-up on
term finance cer- |
|
| tificates
contributed Rs. 9.7 million, up from Rs. 7.6 million in 2000. Profit on money
market transac- |
|
| tions
was Rs. 16.5 million up from Rs. 3.1 million in 2000 and mark-up on bank
deposits and certifi- |
|
| cate
of investments increased to Rs. 13.1 million from Rs. 10.5 million in the
previous year. |
|
|
| 2.
SALE AND REDEMPTION OF UNITS |
|
| During
the year under review, 66,851 units with a value of Rs. 363.315 million were
sold (2000: |
|
| 30,838
units with a value of Rs. 193.922 million) and 11,290 units with a value of
Rs. 62.572 million |
|
| were
redeemed (2000: 13,285 units with a value of Rs. 74.403 million). Net sales
were 55,561 units |
|
| with
a value of Rs. 300.743 million (2000: 17,553 units with a value of Rs.
119.520 million). As on June |
|
| 30,
2001, 144,057 units with a value of Rs. 749.289 million were outstanding
(2000: 88,496 units with |
|
| a
value of Rs. 469.046 million), reflecting an increase of 62.78% in
outstanding number of units and |
|
| 59.75%
in their values. |
|
|
| The
unit holding pattern indicates a healthy mix of investors. 26% units in the
fund were held by prov- |
|
| ident/pension
funds and 24% by banks. Insurance companies had 14% stake in the fund, NBFIs
31% |
|
| and
welfare organizations 2%. Individuals had a collective stake of 3%. In number
individual unit hold- |
|
| ers
constitute 60%. |
|
|
| UNIT PRICES |
|
| After
the announcement of dividend for the year ended June 30, 2000, the
ex-dividend offer and |
|
| redemption
prices of units were fixed at Rs. 5,513 and Rs. 5,412 respectively for the
period from |
|
| Monday,
July 24, 2000 to Thursday, July 27, 2000, based on the net asset value (NAV)
of units on July |
|
| 21,
2000. Subsequently the unit prices were announced weekly on every Saturday
for the following |
|
| week,
based upon the NAV of units on previous Friday. The offer and redemption
prices stood at Rs. |
|
| 5,822
and Rs. 5,721 respectively on the last transaction day i.e. June 28, 2001
(June 30, 2000: Rs. 6,432 |
|
| and Rs. 6,331). |
|
|
| The
register of unit holders was closed from July 1, 2001 to July 21, 2001 to
determine the entitle- |
|
| ment
to dividend. The sale and redemption of units will now recommence from Monday
July 23, |
|
| 2001.
The ex-dividend offer and redemption prices have been fixed at Rs. 5,280 and
Rs. 5, 176 respec- |
|
| tively
for the period Monday, July 23, 2001 to Thursday, July 26, 2001 based on NAV
on July 20, 2001. |
|
|
| 4.
INCOME DISTRIBUTION |
|
| The
Management Company has declared a dividend of Rs. 600 per unit (2000: Rs.
1,125 per unit) for |
|
| the
year ended June 30, 2001. This is equivalent to 12% (2000: 22.5%) of the par
value of units of |
|
| Rs.
5,000 each. As 99.29% (2000: 91.08%) of income of the year is being
distributed to unit holders, |
|
| there
will be no liability for income tax. After setting aside the dividend amount,
the NAV of units |
|
| comes
to Rs. 5,201 on June 30, 2001 (June 30, 2000: Rs. 5,300). |
|
|
| The
dividend warrants and unit certificates/account statements for units acquired
through reinvest- |
|
| ment
of dividend are under preparation and will be dispatched to unit holders by
August 20, 2001. |
|
|
| The
Management Company has distributed dividend on UTP units each year since
public offer on |
|
| October
27, 1997. The dividend announced so far is Rs. 550, Rs. 675, Rs. 1,125 and
Rs. 600 on units |
|
| of
the par value of Rs. 5,000 for the years ended June 30, 1998, 1999, 2000 and
2001 respectively. |
|
| The
average annualized return on units works out to 17.15%. |
|
|
| 5.
MUTUAL FUND RATING |
|
| UTP
has been affirmed AA(f) rating by PACRA. The rating denotes the ability of
the fund to consis- |
|
| tently
out perform its peers with strong capacity to respond to future opportunities
or stress situation. |
|
|
| 6. AUDITORS |
|
| The
Management Company has re-appointed Messrs. Ford, Rhodes, Robson, Morrow -
Chartered |
|
| Accountants,
as auditors of UTP for the financial year 2001-2002. |
|
|
| 7. THANKS |
|
| The
Board of Directors of the Management Company thanks the Securities and
Exchange |
|
| Commission
of Pakistan for their valuable support, understanding and guidance. |
|
|
|
|
For and on behalf of the Board |
|
|
|
|
|
|
| Karachi |
|
|
M. Habib-ur-Rahman |
|
| July 21, 2001 |
|
|
Chief Executive |
|
|
|
| Report
of the Trustee |
|
|
| Report
of the Trustee Pursuant to Rule 18(f) of the Asset Management Companies
Rules, 1995. |
|
|
| ABAMCO
Ltd. the Management Company of Unit Trust of Pakistan has in all material
respects managed |
|
| Unit
Trust of Pakistan in accordance with the provisions of the Trust Deed dated
April 26, 1997 of Unit |
|
| Trust
of Pakistan as amended by the Supplemental Trust Deed dated January 16, 2001
and the Asset |
|
| Management
Companies Rules, 1995, during the period July 1, 2000 to June 30, 2001. |
|
|
| Karachi |
|
|
A. Razak H. Adam |
|
| July 20, 2001 |
|
|
Managing Director |
|
|
|
| Auditors'
Report to the Unit Holders |
|
|
| We
have audited the annexed statement of assets and liabilities of UNIT TRUST OF PAKISTAN as at June |
|
| 30,
2001 and the related income statement, distribution statement and statement
of movement in unit |
|
| holders'
funds, together with the notes forming part thereof, for the year then ended
and we state that we |
|
| have
obtained all the information and explanations which, to the best of our
knowledge and belief, were |
|
| necessary
for the purposes of our audit. |
|
|
| It
is the responsibility of the Management Company to establish and maintain a
system of internal control |
|
| and
prepare and present the above said statements, in conformity with the
approved accounting standards |
|
| and
the requirements of the Trust Deed and the Asset Management Companies Rules,
1995. Our respon- |
|
| sibility
is to express an opinion on these statements based on our audit. |
|
|
| We
conducted our audit in accordance with the auditing standards as applicable
in Pakistan. These stan- |
|
| dards
require that we plan and perform the audit to obtain reasonable assurance
about whether the above |
|
| said
statements are free of any material misstatement. An audit includes examining
on a test basis, evidence |
|
| supporting
the amounts and disclosures in the above said statements. An audit also
includes assessing the |
|
| accounting
policies and significant estimates made by management, as well as, evaluating
the overall pres- |
|
| entation
of the above said statements. |
|
|
| We
believe that our audit provides a reasonable basis for our opinion and after
due verification, we report |
|
| that
in our opinion and to the best of our information and according to the
explanations given to us, the |
|
| statement
of assets and liabilities, income statement, distribution statement and
statement of movement |
|
| in
unit holders' funds, together with the notes forming part thereof have been
prepared in accordance with |
|
| the
relevant provisions of the Trust Deed and the Asset Management Companies
Rules, 1995 and present |
|
| a
true and fair view of the state of affairs as at June 30, 2001 and of the
transactions of the Scheme for the |
|
| year
then ended. |
|
|
| Karachi |
|
|
Ford, Rhodes, Robson, Morrow |
|
|
| July
21, 2001 |
|
|
|
Chartered Accountants |
|
|
|
|
| Statement
of Assets and Liabilities |
|
| As
at June 30, 2001 |
|
|
|
|
|
Note |
2001 |
2000 |
|
| Assets |
|
|
Rupees |
Rupees |
|
| Investments |
|
| Marketable
securities |
|
|
|
| Equity
securities |
|
4.1 |
264,675,329 |
96,928,116 |
|
| Term
finance certificates |
|
4.2 |
28,634,984 |
50,232,040 |
|
|
|
|
------------------ |
------------------ |
|
|
|
4.3 |
293,310,313 |
147,160,156 |
|
| Certificates
of investment |
|
5 |
120,000,000 |
-- |
|
| Clean
placements |
|
6 |
220,000,000 |
2,000,000 |
|
| Receivable
against sale of marketable securities |
7 |
229,001,365 |
438,122,496 |
|
| Advance
against investment |
|
8 |
2,185,000 |
-- |
|
| Other
receivables |
|
9 |
7,441,028 |
6,632,162 |
|
| Bank balances |
|
10 |
21,143,868 |
41,993,590 |
|
|
|
|
------------------ |
------------------ |
|
| Total assets |
|
|
893,081,574 |
635,908,404 |
|
|
========== |
========== |
|
|
| Liabilities |
|
|
|
| Short
term borrowing |
|
|
-- |
50,000,000 |
|
| Payable
against purchase of marketable securities |
|
41,462,522 |
-- |
|
| Remuneration
payable to Management Company |
11 |
14,250,000 |
14,501,244 |
|
| Remuneration
payable to Trustee |
|
12 |
547,741 |
153,674 |
|
| Creditors
and accruals |
|
13 |
549,657 |
2,645,938 |
|
| Amount
payable on redemption of units |
|
543,495 |
-- |
|
| Distribution
payable |
|
|
86,439,185 |
99,561,092 |
|
|
|
|
------------------ |
------------------ |
|
| Total liabilities |
|
|
143,792,600 |
166,861,948 |
|
|
|
|
========== |
========== |
|
| Net assets |
|
|
749,288,974 |
469,046,456 |
|
|
|
|
========== |
========== |
|
| Unit
holders' funds (as per statement attached) |
|
749,288,974 |
469,046,456 |
|
|
|
|
========== |
========== |
|
| Contingencies
and commitments |
|
|
Nil |
Nil |
|
|
|
|
========== |
========== |
|
| Number
of units in issue |
|
|
144,057 |
88,496 |
|
|
|
|
========== |
========== |
|
| Net asset value |
|
|
5,201 |
5,300 |
|
|
|
========== |
========== |
|
|
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
|
For ABAMCO Limited |
|
|
|
(Management Company) |
|
|
|
M. Habib-ur-Rahman |
|
Mazhar ul Haq Siddiqui |
|
Munaf Ibrahim |
|
|
Chief Executive |
|
Director |
|
Director |
|
|
|
|
|
|
|
For Muslim Commercial Financial Services (Private) Limited |
|
|
|
(Trustee) |
|
|
|
A. Razzak H. Adam |
|
|
|
Managing Director |
|
|
|
|
| Income
Statement for the year ended June 30, 2001 |
|
|
|
Note |
2001 |
2000 |
|
|
|
Rupees |
Rupees |
|
|
| Income |
|
| Net
gain on sale of marketable securities |
|
20,866,917 |
59,212,715 |
|
| Dividend
income |
|
|
37,083,290 |
25,983,700 |
|
| Mark-up
on term finance certificates |
|
9,744,918 |
7,629,872 |
|
| Return
on certificates of investment |
|
8,287,288 |
-- |
|
| Profit
on money market transactions |
|
16,500,457 |
3,055,762 |
|
| Return
on bank balances |
|
|
4,826,010 |
10,486,480 |
|
| Other income |
|
|
|
10,968 |
-- |
|
| Element
of income and capital gains in prices |
|
|
|
|
| of
units sold less those in units redeemed |
|
13,989,275 |
26,062,959 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
111,309,123 |
132,431,488 |
|
|
|
|
| Provision
for diminution in market value of marketable |
|
| securities
on an individual investment basis |
|
(2,002,764) |
(452,369) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
109,306,359 |
131,979,119 |
|
|
| Expenses |
|
| Borrowing
charges |
|
|
1,727,446 |
4,100,996 |
|
| Remuneration
of Management Company |
11 |
14,250,000 |
14,501,244 |
|
| Remuneration
of Trustee |
|
12 |
2,999,715 |
1,632,634 |
|
| Brokerage
expenses |
|
|
141,215 |
26,838 |
|
| Bank
and settlement charges |
|
|
2,640,164 |
1,824,476 |
|
| Auditors'
remuneration |
|
14 |
132,500 |
132,750 |
|
| Mutual
fund rating fee |
|
|
366,434 |
456,784 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
22,257,474 |
22,675,722 |
|
|
|
|
------------------ |
------------------ |
|
| Net income |
|
|
|
87,048,885 |
109,303,397 |
|
|
|
|
|
========== |
========== |
|
| Net
income per unit |
|
|
604 |
1,235 |
|
|
|
========== |
========== |
|
|
|
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
|
For ABAMCO Limited |
|
|
|
(Management Company) |
|
|
|
M. Habib-ur-Rahman |
|
Mazhar ul Haq Siddiqui |
|
Munaf Ibrahim |
|
|
Chief Executive |
|
Director |
|
Director |
|
|
|
|
|
|
|
For Muslim Commercial Financial Services (Private) Limited |
|
|
|
(Trustee) |
|
|
|
A. Razzak H. Adam |
|
|
|
Managing Director |
|
|
|
| Distribution
Statement for the year ended June 30, 2001 |
|
|
|
|
2001 |
2000 |
|
|
Rupees |
Rupees |
|
|
| Undistributed
income brought forward |
|
10,869,495 |
1,124,098 |
|
|
|
|
| Net
income for the year |
|
|
87,048,885 |
109,303,397 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
97,918,380 |
110,427,495 |
|
| Final
distribution @ Rs. 600 per unit |
|
| (2000:
Rs. 1,125 per unit)* |
|
|
86,434,200 |
99,558,000 |
|
|
|
|
------------------ |
------------------ |
|
| Undistributed
income carried forward |
|
11,484,180 |
10,869,495 |
|
|
|
|
========== |
========== |
|
|
| *
To be paid on August 20, 2001 |
|
| (2000:
Paid on August 20, 2000) |
|
|
|
|
For ABAMCO Limited |
|
|
|
(Management Company) |
|
|
|
M. Habib-ur-Rahman |
|
Mazhar ul Haq Siddiqui |
|
Munaf Ibrahim |
|
|
Chief Executive |
|
Director |
|
Director |
|
|
|
|
|
|
|
For Muslim Commercial Financial Services (Private) Limited |
|
|
|
(Trustee) |
|
|
|
A. Razzak H. Adam |
|
|
|
Managing Director |
|
|
|
| Statement
of Movement in Unit Holders' Funds |
|
| For
the year ended June 30, 2001 |
|
|
|
|
2001 |
2000 |
|
|
|
Rupees |
Rupees |
|
|
| Net
assets as at the beginning of the year |
|
469,046,456 |
358,281,130 |
|
|
|
|
|
|
| Received
on issue of 66,851 units (2000: 30,838 units) |
363,314,946 |
193,922,383 |
|
| Paid
on redemption of 11,290 units (2000: 13,285 units) |
(62,571,886) |
(74,402,643) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
300,743,060 |
119,519,740 |
|
| Element
of income and capital gains in prices of units sold |
|
|
| less
those in units redeemed |
|
|
(13,989,275) |
(26,062,959) |
|
| Net
unrealised appreciation/(reversal) in market value of |
|
|
| marketable
securities on an individual investment basis |
(7,125,952) |
7,563,148 |
|
| Net
income for the year less distribution |
|
614,685 |
9,745,397 |
|
|
|
|
------------------ |
------------------ |
|
| Net
assets as at the end of the year |
|
749,288,974 |
469,046,456 |
|
|
========== |
========== |
|
|
|
|
| Net
assets as at the end of the year consist of: |
|
|
|
| Capital account |
|
|
735,273,641 |
448,519,856 |
|
| Net
unrealised appreciation in market value of marketable |
|
| securities
on an individual investment basis |
|
2,531,153 |
9,657,105 |
|
| Undistributed
income carried forward |
|
11,484,180 |
10,869,495 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
749,288,974 |
469,046,456 |
|
|
|
|
========== |
========== |
|
|
|
|
For ABAMCO Limited |
|
|
|
(Management Company) |
|
|
|
M. Habib-ur-Rahman |
|
Mazhar ul Haq Siddiqui |
|
Munaf Ibrahim |
|
|
Chief Executive |
|
Director |
|
Director |
|
|
|
|
|
|
|
For Muslim Commercial Financial Services (Private) Limited |
|
|
|
(Trustee) |
|
|
|
A. Razzak H. Adam |
|
|
|
Managing Director |
|
|
|
| Notes
to the Financial Statements |
|
| For
the year ended June 30, 2001 |
|
|
| 1.
LEGAL STATUS AND NATURE OF BUSINESS |
|
|
| Unit
Trust of Pakistan (UTP) has been established under the Asset Management
Companies Rules, |
|
| 1995
and has been approved as an investment scheme by the Securities and Exchange
Commission |
|
| of
Pakistan (formerly Corporate Law Authority) on June 9, 1997. It has been
constituted under a Trust |
|
| Deed,
dated April 26, 1997 and as amended by a Supplemental Trust Deed dated
January 16, 2001 |
|
| between
ABAMCO Limited as the management company, a company incorporated under the |
|
| Companies
Ordinance, 1984 and Muslim Commercial Financial Services (Private) Limited as
the |
|
| trustee,
also incorporated under the Companies Ordinance, 1984 and a wholly owned
subsidiary of |
|
| Muslim
Commercial Bank Limited. |
|
|
|
|
|
| UTP
is an open ended mutual fund and offers units for public subscription on a
continuous basis. The |
|
| units
are transferable and can also be redeemed by surrendering to UTP. The units
are listed on the |
|
| Lahore
Stock Exchange. |
|
|
| The
principal activity of UTP is to make investments in securities listed on the
stock exchanges reg- |
|
| istered
in Pakistan under the Securities and Exchange Ordinance, 1969, as well as
other debt securi- |
|
| ties
including Government of Pakistan paper, commercial paper and various other
money market |
|
| instruments. |
|
|
| 2.
BASIS OF PRESENTATION |
|
| These
financial statements have been prepared in accordance with the requirements
of the Trust |
|
| Deed
and the Asset Management Companies Rules, 1995. |
|
|
| 3.
ACCOUNTING POLICIES |
|
|
| 3.1
Accounting convention |
|
| These
financial statements have been prepared under the historical cost convention,
as modified |
|
| by
the revaluation of marketable securities to market value at the year end. |
|
|
| 3.2 Investments |
|
| Investments
in marketable securities are valued at market value. Market values of quoted
mar- |
|
| ketable
securities are taken from the stock exchange rates ruling at the year end,
except for term |
|
| finance
certificates, in respect of which a suitable adjustment is made to account
for the fact that |
|
| these
are not actively traded on the stock exchanges. Sales and purchases of
marketable securi- |
|
| ties
are recognised on the date of contract. Net unrealised appreciation in value
of marketable |
|
| securities
on an individual investment basis is taken to unit holders' funds whereas net
unrealised |
|
| diminution
in value of marketable securities on an individual investment basis is taken
to the |
|
| income
statement. |
|
|
| Investment
in certificates of investment are stated at cost. |
|
|
| 3.3
Securities under repurchase/resale agreements |
|
| Transactions
of purchase under resale (reverse-repo) of government securities and term
finance |
|
| certificates
are entered into at contracted rates for specified periods of time with other
financial |
|
| institutions.
The securities purchased under resale obligations are recorded as placements
under |
|
| reverse-repo
arrangements at the contracted purchase prices. The differential between the
ini- |
|
| tial
and maturity values of the contracts is amortized over the period of the
respective contract |
|
| and
recorded as income under profit from money market transactions. |
|
|
| Transactions
of sale under repurchase (repo) of term finance certificates are entered into
at con- |
|
| tracted
rates for specific periods of time with other financial institutions. The
securities sold |
|
| under
repurchase obligations are recognised as liabilities at the contracted sale
prices. The dif- |
|
| ferential
between the initial and the maturity values of the contracts is amortized
over the peri- |
|
| od
of the respective contract and recorded as expenses under borrowing charges. |
|
|
| 3.4
Issue and redemption of units |
|
| Units
issued are recorded at t |
