| Fifth 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 |
|
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 JUNE 30, 1999 |
|
|
|
|
Note |
1999 |
1998 |
|
|
|
|
Rupees |
Rupees |
|
| NET ASSETS |
|
|
|
|
|
|
| Investment
in quoted shares |
|
3 |
47,237,397 |
45,322,299 |
|
| [Market
value Rs.34,761,499 (1998: Rs. 29,741,199)] |
|
|
|
|
| Security
deposit |
|
|
100,000 |
100,000 |
|
|
|
|
| Current
assets |
|
|
|
| Dividend
receivable |
|
800,000 |
958,875 |
|
| Prepaid
expenses |
|
7,500 |
20,000 |
|
|
|
|
| Current
account with the Investment Corporation |
|
| of
Pakistan (ICP) |
|
|
15,754,179 |
13,319,266 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
16,561,679 |
14,298,141 |
|
|
|
|
| Current
liabilities |
|
|
|
| Accrued
expenses |
|
19,338 |
57,221 |
|
| Unclaimed
dividend |
|
1,019,232 |
2,210,523 |
|
| Taxation - net |
|
472,081 |
18,600 |
|
|
|
------------------ |
------------------ |
|
|
|
1,510,651 |
2,286,344 |
|
|
|
------------------ |
------------------ |
|
|
|
15,051,028 |
12,011,797 |
|
|
|
------------------ |
------------------ |
|
|
|
62,388,425 |
57,434,096 |
|
|
|
|
|
========== |
========== |
|
| 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 |
|
|
|
| General
reserve |
|
75,000 |
75,000 |
|
| Unappropriated
income |
|
12,313,425 |
7,359,096 |
|
|
|
------------------ |
------------------ |
|
|
|
62,388,425 |
57,434,096 |
|
|
|
|
|
========== |
========== |
|
|
|
|
| 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 |
|
|
|
Note |
1999 |
1998 |
|
|
|
Rupees |
Rupees |
|
|
|
|
| INCOME |
|
|
|
| Dividend |
|
3,891,614 |
2,710,988 |
|
| Return
on current account with the ICP |
|
1,353,708 |
1,513,730 |
|
| Profit
on sale of investment |
|
2,266,208 |
8,423,813 |
|
| Other income |
|
3,523 |
5,020 |
|
|
|
------------------ |
------------------ |
|
|
|
7,515,053 |
12,653,551 |
|
|
|
|
|
| EXPENDITURE |
|
|
|
| Management
fee |
|
5 |
1,372,638 |
1,187,082 |
|
| Auditors'
remuneration |
|
6 |
14,730 |
12,130 |
|
| Diminution
in the value of investment |
|
|
509,725 |
-- |
|
| Other
expenses |
|
7 |
210,150 |
288,170 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
2,107,243 |
1,487,382 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
5,407,810 |
11,166,169 |
|
|
|
|
| Write
Back, Of Provision In Respect OF Golden |
|
| Handshake
Expenses |
|
|
-- |
28,214 |
|
|
|
|
------------------ |
------------------ |
|
| INCOME
BEFORE TAXATION |
|
5,407,810 |
11,194,383 |
|
|
|
|
|
|
| TAXATION
- Current |
|
8 |
407,196 |
580,000 |
|
| Prior |
|
46,285 |
-- |
|
|
|
------------------ |
------------------ |
|
|
|
453,481 |
580,000 |
|
|
|
|
------------------ |
------------------ |
|
| NET
INCOME AFTER TAXATION |
|
|
4,954,329 |
10,614,383 |
|
| UNAPPROPRIATED
INCOME BROUGHT FORWARD |
|
7,359,096 |
1,744,713 |
|
|
|
|
------------------ |
------------------ |
|
| AVAILABLE
FOR APPROPRIATION |
|
|
12,313,425 |
12,359,096 |
|
| Interim
dividend Nil (1998: @ 10%) |
|
-- |
5,000,000 |
|
|
|
------------------ |
------------------ |
|
| UNAPPROPRIATED
INCOME CARRIED FORWARD |
|
12,313,425 |
7,359,096 |
|
|
|
|
========== |
========== |
|
| BASIC
EARNINGS PER SHARE (CERTIFICATE) |
9 |
0.99 |
2.12 |
|
|
|
|
========== |
========== |
|
|
| 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 |
|
Direct |
|
|
|
| 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 |
2,431,111 |
385,660 |
|
| Sale
of investment |
|
|
9,066,805 |
14,678,013 |
|
| Purchase
of investment |
|
|
(9,225,420) |
(13,344,885) |
|
| Taxes paid |
|
|
-- |
(494,120) |
|
|
|
|
------------------ |
------------------ |
|
| Net
cash inflow from operating activities |
|
|
2,272,496 |
1,224,668 |
|
|
|
|
| CASH
FLOW FROM INVESTING ACTIVITIES |
|
| Return
on current account with ICP |
|
1,353,708 |
1,513,730 |
|
| Security
deposit |
|
-- |
(100,000) |
|
|
|
------------------ |
------------------ |
|
| Net
cash inflow from investing activities |
|
1,353,708 |
1,413,730 |
|
|
|
|
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
|
|
| Dividend paid |
|
|
(1,191,291) |
(5,140,820) |
|
|
|
------------------ |
------------------ |
|
| Net
cash used in financing activities |
|
(1,191,291) |
(5,140,820) |
|
|
|
------------------ |
------------------ |
|
| NET
INCREASE/(DECREASE) IN CASH EQUIVALENT |
|
2,434,913 |
(2,502,422) |
|
| CASH
EQUIVALENT AT THE BEGINNING OF THE YEAR |
|
13,319,266 |
15,821,688 |
|
|
|
|
------------------ |
------------------ |
|
| CASH
EQUIVALENT AT THE END OF THE YEAR |
11 |
15,754,179 |
13,319,266 |
|
|
|
|
|
|
========== |
========== |
|
|
|
|
|
| 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.
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
Fifth ICP Mutual Fund was established by the Investment Corporation of
Pakistan (ICP), acting as its Trustee, on June 26, 1972, |
|
| 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 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 |
|
|
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 |
|
| 103,200 |
103,200 |
F.G Modaraba |
|
10.51 |
1,085,250 |
12.25 |
1,264,200 |
10.51 |
1,085,250 |
10.75 |
1,109,400 |
| 27,000 |
27,000 |
Habib Bank Modaraba |
6.87 |
185,535 |
6.17 |
166,590 |
6.87 |
185,535 |
5.67 |
153,090 |
|
|
|
|
|
|
|
BANKS/INVESTMENT BANKS |
|
| 118,341 |
56925.00 |
Bank Al Habib Ltd. |
17.44 |
2,064,025 |
18.00 |
2,130,138 |
22.26 |
1,267,200 |
23.00 |
1,309,275 |
|
|
|
|
SUGAR |
|
|
| 12,100 |
11,000 |
Dewan Sugar Mills Ltd. |
17.75 |
214,775 |
17.75 |
214,775 |
32.50 |
357,500 |
19.00 |
209,000 |
| -- |
249,773 |
Habib Sugar Mills Ltd.
(Rs. 5) |
-- |
-- |
-- |
-- |
4.19 |
1,046,918 |
7.50 |
1,873,298 |
| 51,617 |
51,617 |
Shahmurad Sugar Mills
Ltd. |
9.22 |
476,421 |
17.75 |
916,202 |
9.22 |
476,421 |
17.75 |
916,203 |
|
|
|
|
|
CEMENT |
|
|
| 50,000 |
50,000 |
Cherat Cement Company
Ltd. |
19.17 |
958,710 |
13.00 |
650,000 |
19.17 |
958,710 |
10.20 |
510,000 |
| 40,000 |
40,000 |
Lucky Cement Company Ltd. |
3.82 |
152,800 |
3.82 |
152,800 |
12.99 |
519,800 |
3.90 |
156,000 |
|
|
|
|
|
|
|
|
|
FUEL AND ENERGY |
|
| -- |
67 |
Karachi Electric Supply
Corporation Ltd. |
-- |
-- |
-- |
-- |
6.49 |
435.00 |
8.42 |
564 |
| 50,000 |
50,000 |
Kohinoor Energy Ltd. |
16.49 |
824,900 |
10.80 |
540,000 |
16.49 |
824,900 |
4.87 |
243,500 |
| 34,100 |
34,100 |
National Refinery Ltd. |
13.80 |
470,580 |
30.37 |
1,035,617 |
13.80 |
470,580 |
15.50 |
528,550 |
| 66,720 |
25,600 |
Pakistan State Oil
Company Ltd. |
138.35 |
9,230,720 |
92.75 |
6,188,280 |
254.30 |
6,510,300 |
73.75 |
1,888,000 |
| 57,189 |
49,730 |
Sui Northern Gas Company
Ltd. |
4.56 |
261,000 |
8.37 |
478,672 |
5.24 |
261,000 |
8.85 |
440,110 |
| 15,500 |
5,000 |
Shell Pakistan Ltd. |
134.75 |
2,088,350 |
163.00 |
2,526,500 |
141.59 |
707,950 |
146.50 |
732,500 |
| -- |
10,000 |
Shell Pakistan Ltd. (RP) |
-- |
-- |
-- |
-- |
130.00 |
1,300,000 |
202.00 |
2,020,000 |
| 56,500 |
36,500 |
Mari Gas Company Ltd. |
21.13 |
1,193,950 |
17.90 |
1,011,350 |
23.11 |
843,750 |
17.50 |
638,750 |
| 40,000 |
40,000 |
S. Electric Power Company
Ltd. |
11.18 |
447,200 |
6.32 |
252,800 |
11.18 |
447,200 |
3.00 |
120,000 |
| 70,000 |
-- |
Hub Power Company Ltd. |
16.12 |
1,128,750 |
14.07 |
984,900 |
-- |
-- |
-- |
-- |
|
|
|
|
|
|
|
|
|
|
AUTO AND ALLIED
ENGINEERING |
|
| 60,000 |
50,000 |
Pak Suzuki Motors Company
Ltd. |
40.71 |
2,442,800 |
25.00 |
1,500,000 |
42.82 |
2,141,300 |
34.00 |
1,700,000 |
| 40,000 |
-- |
General Tyre and Rubber
Company Ltd. |
30.12 |
1,204,825 |
37.25 |
1,490,000 |
-- |
-- |
-- |
-- |
|
|
|
|
CABLES & ELECTRICAL |
|
| 12,705 |
12,705 |
Philips electrical
Industries of Pakistan Ltd. |
74.87 |
951,300 |
41.95 |
532,975 |
74.87 |
951,300 |
34.09 |
433,113 |
| 6,237 |
4,950 |
Refrigerators
Manufacturing Company Pakistan Ltd. |
65.36 |
407,700 |
10.00 |
62,370 |
82.36 |
407,700 |
12.00 |
59,400 |
|
|
|
|
TRANSPORT AND
COMMUNICATION |
|
| 120,000 |
100,000 |
P.T.C.L. "A" |
|
30.40 |
3,648,350 |
20.02 |
2,402,400 |
33.06 |
3,306,350 |
15.77 |
1,577,000 |
|
|
|
|
CHEMICAL AND
PHARMACEUTICAL |
|
| 11,500 |
10,000 |
BOC Pakistan Ltd. |
129.57 |
1,490,100 |
81.00 |
931,500 |
149.01 |
1,490,100 |
90.00 |
900,000 |
| 447 |
37,237 |
Engro Chemicals
(Pakistan) Ltd. |
71.71 |
32,056 |
73.67 |
32,930 |
86.04 |
5,785,300 |
51.25 |
3,445,896 |
| 200,000 |
155,000 |
Fauji Fertilizer Company
Ltd. |
73.89 |
14,778,550 |
41.17 |
8,234,000 |
80.50 |
12,478,050 |
51.37 |
7,962,350 |
|
|
|
|
PAPER AND BOARD |
|
| 20,000 |
20,000 |
Cherat Papersack Company
Ltd. |
45.23 |
904,750 |
38.00 |
760,000 |
45.23 |
904,750 |
28.00 |
560,000 |
| 24,200 |
22,000 |
Century Papers &
Board Company Ltd. |
24.54 |
594,000 |
12.50 |
302,500 |
27.00 |
594,000 |
11.60 |
255,200 |
|
|
------------------ |
|
------------------ |
|
------------------ |
|
------------------ |
|
|
47,237,397 |
|
34,761,499 |
|
45,322,299 |
|
29,741,199 |
|
========== |
|
========== |
|
========== |
|
========== |
|
| *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 & |
General |
Unappropriated |
|
|
|
|
paid-up capital |
reserve |
Income |
Total |
|
|
Rupees |
Rupees |
Rupees |
Rupees |
|
|
| Balance
as at 30 June 1997 |
50,000,000 |
75.00 |
1,744,713 |
51,819,713 |
|
| Income
for the year |
-- |
-- |
19,614,383 |
10,614,383 |
|
| Dividend |
|
-- |
-- |
(5,000,000) |
(5,000,000) |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
| Balance
as at 30 June 1998 |
50,000,000 |
75.00 |
7,359,096 |
57,434,096 |
|
|
|
|
|
|
| Income
for the year |
-- |
-- |
4,954,329 |
4,954,329 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
| Balance
as at 30 June 1999 |
50,000,000 |
75.00 |
12,313,425 |
62,388,425 |
|
|
|
========== |
========== |
========== |
========== |
|
|
| 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 addition 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 annum of the market |
|
| value
of net assets at the close o the year |
|
5.1 |
1,347,638 |
1,162,082 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
1,372,638 |
1,187,082 |
|
|
|
|
========== |
========== |
|
|
|
|
| 5.1
Market value of net assets as at close of the year |
|
| Investment
in quoted shares |
|
3 |
34,761,499 |
29,741,199 |
|
| Long
term deposit |
|
|
|
100,000 |
100,000 |
|
|
|
|
| Current
assets |
|
|
|
| Dividend
assets |
|
|
|
800,000 |
958,875 |
|
| Prepaid
expenses |
|
|
7,500 |
20,000 |
|
| Current
account with the ICP |
|
|
15,754,179 |
14,506,348 |
|
| Taxation - net |
|
|
-- |
14,506,348 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
16,561,679 |
15,485,223 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
51,423,178 |
45,326,422 |
|
|
|
|
| Current
liabilities |
|
|
|
| Accrued
expenses |
|
|
|
19,338 |
57,221 |
|
| Unclaimed
dividend |
|
|
|
1,019,232 |
2,210,523 |
|
| Taxation - net |
|
|
|
472,081 |
18,600 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
1,510,651 |
2,286,344 |
|
|
|
|
|
|
|
49,912,527 |
43,040,078 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| 1999: |
(49,912,527 x 45,000,000) |
|
@ 3% = |
1,347,638 |
|
|
50,000,000 |
|
========== |
|
|
| 6.
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 |
|
|
|
========== |
========== |
========== |
========== |
|
|
|
|
| 7.
OTHER EXPENSES |
|
|
| Printing
and stationery |
|
|
|
7,294 |
48,556 |
|
| Advertising
and publicity |
|
|
|
3,185 |
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 |
|
|
|
52,222 |
53,609 |
|
| Postage |
|
|
|
|
14,716 |
42,186 |
|
| Professional
tax |
|
|
|
38,000 |
38,000 |
|
| Share
transfer stamps |
|
|
|
13,365 |
8,375 |
|
| Bank charges |
|
|
|
|
1,702 |
3,442 |
|
| Excise duty |
|
|
|
|
-- |
3,800 |
|
| Miscellaneous |
|
|
|
|
4,860 |
1,359 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
210,150 |
288,170 |
|
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
| 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 |
|
|
|
4,954,329 |
10,614,383 |
|
|
|
|
|
========== |
========== |
|
| Number
of certificates |
|
|
|
5,000,000 |
5,000,000 |
