Welcome to PakSearch.com Pakistan's Premier Business Information Service


For business information, annual reports, laws, ordinances, regulations and articles.




Google
 
Web Paksearch.com
Sixth 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 3 46,969,177 48,023,706
(Market value Rs. 73,196,832 (1998: Rs. 63,020,078)
Security deposit
Current assets
Dividend receivable 1,281,600 1,020,000
Prepaid expenses 7,500 20,000
Current account with the Investment Corporation
of Pakistan (ICP) 19,726,633 21,216,170
Taxation - net 332,704 183,234
------------------ ------------------
21,348,437 22,439,404
Current liabilities
Accrued expenses 19,338 56,641
Unclaimed dividend 1,846,590 12,081,384
Dividend payable 10,000,000 --
------------------ ------------------
11,865,928 12,138,025
------------------ ------------------
9,482,509 10,301,379
------------------ ------------------
56,551,686 58,425,085
========== ==========
FINANCED BY
Capital and Reserves
Capital
Authorised
5,000,000 (1998: 5,000,000) Certificates of Rs. 10 each
50,000,000 50,000,000
========== ==========
Issued, subscribed and paid-up
5,000,000 (1998: 5,000,000) Certificates of Rs. 10 each
fully paid in cash 50,000,000 50,000,000
Revenue reserve
Unappropriated income
6,551,686 8,425,085
------------------ ------------------
56,551,686 58,425,085
========== ==========
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 6,666,765 5,516,484
Return on current account with the ICP 1,697,595 1,708,965
Profit on sale of investment 3,164,871 11,341,601
Other income 2,558 9,541
------------------ ------------------
11,533,789 18,576,591
EXPENSES
5 2,276,704 1,856,675
6 14,730 12,130
Diminution in the value of investment 1,037,500 --
7 227,724 298,770
------------------ ------------------
3,556,858 2,167,575
Reversal of excess Provision for Golden Handshake expenses (net) -- 3,165,687
------------------ ------------------
7,977,131 19,574,703
INCOME BEFORE TAXATION
TAXATION
Current 8 -- 785,000
Prior (149,470) --
------------------ ------------------
(149,470) 785,000
------------------ ------------------
INCOME AFTER TAXATION 8,126,601 18,789,703
UNAPPROPRIATED INCOME BROUGHT FORWARD 8,425,085 2,135,382
------------------ ------------------
AVAILABLE FOR APPROPRIATION 16,551,686 20,925,085
------------------ ------------------
Interim dividend Nil (1998: @ 25%) -- 12,500,000
Final divided @ 20% (1998: Nil) 10,000,000 --
------------------ ------------------
10,000,000 12,500,000
------------------ ------------------
UNAPPROPRIATED INCOME CARRIED FORWARD 6,551,686 8,425,085
========== ==========
BASIC EARNINGS PER SHARE (CERTIFICATE) 9 1.63 3.76
========== ==========
The annexed notes form an integral part of these accounts.
for 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 3,865,762 5,568,911
Sale of investment 9,411,520 15,919,100
Purchase of investment (6,229,620) (7,781,266)
Taxes paid -- (901,079)
------------------ ------------------
Net cash inflow from operating activities 7,047.66 12,825,666
------------------ ------------------
CASH FLOW FROM INVESTING ACTIVITIES
Security deposit -- (100,000)
Return on current account with ICP 1,697,595 1,708,965
------------------ ------------------
Net cash inflow from investing activities 1,697,595 1,608,965
------------------ ------------------
CASH FLOW FROM FINANCING ACTIVITIES
Dividend paid (10,234,794) (15,774,089)
------------------ ------------------
Net cash outflow from financing activities (10,234,794) (15,774,089)
------------------ ------------------
NET INCREASE/(DECREASE) IN CASH EQUIVALENT (1,489,537) (1,339,458)
CASH EQUIVALENT AT THE BEGINNING OF THE YEAR 2,216,170 22,555,628
------------------ ------------------
CASH EQUIVALENT AT THE END OF THE YEAR 11 19,726,633 21,216,170
========== ==========
for Investment Corporation of Pakistan
Managing Director Director Director
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED JUNE 30, 1999
1. STATUS AND NATURE OF BUSINESS
In order generally to broaden the base of investment and to encourage investment in sound quoted shares, the Sixth ICP Mutual Fund was established by the Investment
Corporation of Pakistan (ICP), acting as its Trustee, on June 04, 1973, 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 presentation
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 recognise decline, i.e., for a 
period not less than three years, to arrive at book value;
(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 recorded at the time of closure of share transfer books of the company
declaring dividend;
(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
Modaraba
108,000 108,000 First Grindlays Modaraba 10.44 1,128,000 12.25 1,323,000 10.44 1,128,000 10.75 1,161,000
Banks/Investment Banks
120,750 120,750 Askari Commercial Bank Ltd. 18.64 2,251,000 12.00 1,457,452 18.64 2,251,000 13.75 1,660,313
32,560 24,667 Bank Al-Habib Ltd. 16.59 540,150 18.00 586,080 21.90 540,150 23.00 567,341
Sugar and Allied
-- 337,500 Habib Sugar Mills Ltd. (Rs. 5) -- -- -- -- 5.14 1,736,041 7.50 2,531,250
-- 85,998 Mirpurkhas Sugar Mills Ltd. -- -- -- -- 11.27 969,480 12.25 1,053,476
Cement
50,000 50,000 Cherat Cement Company Ltd. 19.34 967,160 13.00 650,000 19.34 967,160 10.20 510,000
15,000 15,000 Dadabhoy Cement Industries Ltd. 8.00 120,000 4.25 63,750 8.00 120,000 3.50 52,500
36,527 36,527 Gharibwal Cement Industries Ltd. 2.85 104,183 4.25 155,240 2.85 104,183 5.00 182,635
Fuel and Energy
75,000 50,000 Hub Power Company Ltd. 27.28 2,046,250 14.07 1,055,250 32.41 1,620,250 12.37 618,500
159,468 159,468 Karachi Electric Supply Corporation Ltd. 4.54 723,208 8.63 1,382,588 4.54 723,208 8.42 1,342,720
96,662 71,662 National Refinery Ltd. 11.93 1,153,536 30.37 2,935,625 11.16 799,461 15.50 1,110,761
366,600 305,500 Pakistan State Oil Company Ltd. 2.73 1,001,828 92.75 34,002,150 3.28 1,001,828 73.75 22,530,625
4,350 -- Shell Pakistan Ltd. 137.61 598,620 163.00 709,050 -- -- -- --
-- 3,450 Shell Pakistan Ltd. (Right) -- -- -- -- 130.00 448,500 202.00 696,900
182,869 159,017 Sui Northern Gas Pipelines Company Ltd. 12.44 2,275,500 8.37 1,530,614 14.31 2,275,500 8.85 1,407,300
43,642 39,675 Sui Southern Gas Company Ltd. 20.91 912525.00 8.60 375,321 23.00 912,525 9.00 357,075
Auto and Engineering
6,500 -- Sitara Engineering 23.11 150,225 23.50 152,750 -- -- -- --
27,000 17,000 Pak Suzuki Motors Company Ltd. 37.50 1,012,500 25.00 675,000 41.82 711,000 34.00 578,000
Transport and Communication
100,000 100,000 P.T.C.L. "A" 32.61 3,261,000 20.02 2,002,000 32.61 3,261,000 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
14,400 12,000 Dawood Hercules Chemicals Ltd. (Rs. 5) 57.92 834,000 102.00 1,468,800 69.50 834,000 120.00 1,440,000
3,124 35,937 Engro Chemicals Pakistan Ltd. 82.60 258,050 73.67 230,145 99.11 3,561,600 51.25 1,841,771
238,100 150,000 Fauji Fertilizer Company Ltd. 69.50 16,547,665 41.17 9,802,577 80.46 12,069,740 51.37 7,705,500
200,000 200,000 F.F.C. Jordan Fertilizer Company Ltd. 11.25 2,250,000 11.25 2,250,000 16 3,287,500 12.97 2,594,000
Paper and Board
14,000 7,000 Cherat Papersack Ltd. 38.13 533,830 38.00 512,000 23.32 163,230 28.00 196,000
32,340 28,132 Packages Ltd. 14.22 459,747 41.00 1,325,940 16.34 459,747 35.99 1,012,192
Vanaspati and Allied Industries
-- 16,345 Wazir Ali Industries Ltd. -- -- -- -- 14.59 238,403 8.75 143,019
Food and Allied
10,000 10,000 Lever Brothers (Pakistan) Ltd. (Rs. 50) 635.01 6,350,100 760.00 7,600,000 635.01 6,350,100 925.00 9,250,000
------------------ ------------------ ------------------ ------------------
46,969,177 73,196,832 48,023,706 63,020,078
========== ========== ========== ==========
4. STATEMENT OF CHANGES IN EQUITY
Issued,
subscribed & Unappropriated
paid-up capital Income Total
Rupees Rupees Rupees
Balance as at 30 June 1997 50,000,000 2,135,382 52,135,382
Net income for the year -- 18,789,703 18,789,703
Dividend -- (12,500,000) (12,500,000)
------------------ ------------------ ------------------
Balance as at 30 June 1998 50,000,000 8,425,085 58,425,085
Net income for the year -- 8,126,601 8,126,601
Dividend -- (10,000,000) (10,000,000)
------------------ ------------------ ------------------
Balance as at 30 June 1999 50,000,000 6,551,686 56,551,686
========== ========== ==========
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.
Note 1999 1998
Management fee on initial paid-up capital @ 1/2%
on Rs. 10 million 50,000 50,000
Management fee on capital raised through right issue
@3% of net assets market value of the Fund
92,779,341 x 40,000,000 x 3%
                     50,000,000 2,276,704 1,806,675
------------------ ------------------
2,276,704 1,856,675
========== ==========
5.1 Not assets market value
Investment in quoted shares 3 73,196,832 63,020,078
Security deposit 100,000 100,000
Current assets
Dividend receivable 1,281,600 1,020,000
Prepaid expenses 7,500 20,000
Current account with the ICP 19,726,633 23,072,845
Taxation - net 332,704 183,234
------------------ ------------------
23,348,437 24,296,079
------------------ ------------------
94,645,269 87,416,157
Current liabilities
Accrued expenses 19,338 56,641
Unclaimed dividend 1,846,590 12,081,384
------------------ ------------------
1,865,928 12,138,025
------------------ ------------------
92,779,341 75,278,132
========== ==========
6. AUDITORS' REMUNERATION
Taseer Hadi Ford, Rhodes, 1999 1998
Khalid & Co. Robson, Rupees Rupees
Morrow
Audit fee 2,950 2,950 5,900 5,130
Tax services 8,830 -- 8,830 7,000
------------------ ------------------ ------------------ ------------------
11,780 2,950 14,730 12,130
========== ========== ========== ==========
1999 1998
Note Rupees Rupees
7. OTHER EXPENSES
Printing and stationery 8,214 48,446
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
Excise duty -- 4,600
Computer related expenses 48,825 56,653
Postage 14,716 42,186
Professional tax 38,000 38,000
Bank charges 14,944 11,358
Share transfer stamps 20,175 7,325
Miscellaneous