financial statements for the year ended ... - faysal asset faysal asset management faysal money...

Financial Statements for the year ended June 30, 2016

Review Report to the Unit Holders on the Statment of Compliance withthe best practices of the code of corporate governance

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Faysal Asset Management Faysal Money Market Fund04

Bank Alfalah LimitedFaysal Bank LimitedAskari Bank LimitedUBL Ameen - Islamic BankingHabib Metropolitan LimitedAllied Bank LimitedHabib Bank Limited

Faysal Asset Management Limited

Mr. Nauman Ansari, ChairmanMr. Razi-Ur-Rahman Khan, DirectorMr. Osman Khan, DirectorSyed Ibad-Ur-Rehman Chishti, DirectorMr. Mohammad Zahid Ahmed, DirectorMr. Farooq Hadi, DirectorMr. Enamullah Khan, Chief Executive Officer

Mr. Umairullah Khan

Mr. Razi-Ur-Rahman Khan, ChairmanSyed Ibad-ur-Rehman Chisti, MemberMr. Osman Khan, Member

Central Depository Company of Pakistan Limited,

Chief Financial Officerand Company Secretary of theManagement Company

Mr. Osman Khan, ChairmanMr. Razi-Ur-Rahman Khan, MemberSyed Ibad-Ur-Rehman Chishti, MemberMr. Enamullah Khan, Member

HR Comittee

Impairment is determined as follows:

(a)

(b)

(c)

Offsetting of financial assets and liabilities

4.16 Zakat payable

5. ACCOUNTING ESTIMATES AND JUDGMENTS

Financial assets and financial liabilities are only offset and the net amount reported in the statement ofassets and liabilities when there is a legally enforceable right to set off the recognised amount and theFund intends to either settle on a net basis, or to realise the asset and settle the liabilitysimultaneously.

for assets carried at amortised cost, impairment is based on estimated cash flowsdiscounted at the original effective interest rate;

Judgments made by management in the application of accounting policies that have significant effect on thefinancial statements and estimates with a significant risk of material adjustment are explained in note 4.3,4.4 and 4.15 to the financial statements.

for assets carried at fair value, impairment is the difference between cost and fair value;

for assets carried at cost, impairment is present value of future cash flows discounted at thecurrent market rate of return for a similar financial asset.

For available-for-sale equity investments, reversal of impairment losses are recorded as increases incumulative changes in fair value through unit holder's fund.

In addition, a provision is made to cover impairment for specific groups of assets where there is ameasurable decrease in estimated future cash flows.

The preparation of financial statements requires management to make estimates , judgments andassumptions that effect the application of policies and reported amounts of assets and liabilities, income andexpenses. The estimates and associated assumptions are based on historical experience and various otherfactors that are believed to be reasonable under the circumstances, the result of which form the basis ofmaking judgments about carrying values of assets and liabilities. The estimates and underlying assumptionsare reviewed on an ongoing basis.

Zakat payment is the responsibility of each unit holder. Nevertheless, the fund follows the provisionsof Zakat and Ushr Ordinance, 1984. Units held by individual resident Pakistani shareholders aresubject to Zakat @ 2.5% of the par value of the unit under the said Ordinance, except those exemptedfrom Zakat. Zakat is deducted at source from dividend or from redemption proceeds, if units areredeemed during the Zakat year before payment of Zakat.

Deloitte Yousuf Adil, Chartered Accountants

Faysal Asset Management Faysal Money Market Fund 05


(a)

(b)

(c)


4.16 Zakat payable











6.

Standard

IFRS 2 – Share-based Payments – Classification and Measurement of Share-based Payments Transactions (Amendments)

IFRS 10 – Consolidated Financial Statements, IFRS 12 Disclosure of Interests in Other Entities and IAS 28 Investment in Associates and Joint Ventures Applying the Consolidation Exception (Amendment)

Standard

IFRS 10 – Consolidated Financial Statements and IAS 28 Investmentin Associates and Joint Ventures - Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendment)

IFRS 11 – Joint Arrangements - Accounting for Acquisition of Interest in Joint Venture (Amendment)

IAS 1 – Presentation of Financial Statements - Disclosure Initiative (Amendment)

IAS 7 – Financial Instruments: Disclosures - Disclosure Initiative - (Amendment)

IAS 12 – Income Taxes – Recognition of Deferred Tax Assets for Unrealized losses (Amendments)

IAS 16 – Property, Plant and Equipment and IAS 38intangible assets - Clarification of Acceptable Method of Depreciation and Amortization (Amendment)

IAS 16 – Property, Plant and Equipment IAS 41 Agriculture – Agriculture: Bearer Plants (Amendment)

IAS 27 – Separate Financial Statements – Equity Method in Separate Financial Statements (Amendment)

January 01, 2016

January 01, 2018

January 01, 2017

January 01, 2016

Effective date(accounting periods

beginning on or after)

Effective date

STANDARDS AND AMENDMENTS TO APPROVED ACCOUNTING STANDARDS THAT ARE NOT YET EFFECTIVE

The following revised standards and amendments with respect to the approved accounting standards asapplicable in Pakistan would be effective from the dates mentioned below against the respective standardsand amendments:

Not yet finalized

In addition to the above standards and amendments, improvements to various accounting standards havealso been issued by the IASB. Such improvements are generally effective for accounting periods beginningon or after January 01, 2016.

(accounting periodsbeginning on or after)

January 01, 2016

January 01, 2016

January 01, 2016

January 01, 2017

The above standards and amendments are not expected to have any material impact on the Fund's financialstatements in the period of initial application.

January 01, 2016

REPORT OF THE DIRECTORS OF THE MANAGEMENT COMPANY


The Directors of the Faysal Asset Management Limited, the Management Company of Faysal Money Market Fund (FMMF), are pleased to present the Annual Report on the operations of FMMF along with the audited accounts, Reports of the Trustee and Auditors to the Unit Holders for the year ended June 30, 2016.

SALE AND REDEMPTION OF UNITS

During the year, units worth Rupees 7,086.997 million were issued and units with a value of Rupees 9,739.835 million were redeemed.

UNIT HOLDERS

As of June 30, 2016, total unit outstanding were 7,491,230 units with a value of Rs. 757.330 million were outstanding (June 30, 2015: 32,947,183 units with a value of Rs. 3,329.625 million).

UNIT PRICES

Unit prices are being announced on a daily basis based on the NAV of the underlying portfolio. The highest and lowest offer/redemption prices during the period as well as the prices prevailing as of June 30, 2016 were as below:

Offer Price Redemption Price Highest 106.60 106.60 Lowest 101.04 101.04 As of June 30, 2016 101.10 101.10

ECONOMIC OUTLOOK

Pakistan’s economy underwent substantial progress during the course of fiscal year 2016. Almost all the critical macroeconomic indicators exhibited continuous progress which alleviated the GDP growth to reach 8-year high of 4.7%. The industrial sector activities made significant strides on the back of better energy supply and improved law and order situation. Despite the challenges on external front in the form of declining exports amid deteriorating global growth prospects and heavy agricultural losses, economic recovery process remained on track.

The average inflation during FY16 declined to 47-year low of 2.86% against 4.53% in the same period last year. Such historical lows were achieved on the back of falling commodity prices and contained food inflation along with help from prudent monetary and fiscal policies. The ‘Perishable Food Items’ and ‘Transport’ heads registered year-on-year negative readings at -1.82% and -5.18% respectively. Likewise, all the other CPI basket items remained benign throughout the year.

International reserve buffers held by State Bank of Pakistan (SBP) were effectively rebuilt during the year. By the year end, foreign exchange reserves reached to USD 18.1 billion, sufficient to finance four months of imports. Muted global oil prices, steady remittances growth, improved Foreign Direct Investments (FDI) and FX borrowing played the much needed role in consolidation of the foreign exchange reserves.

According to the figures of State Bank of Pakistan (SBP), current account deficit (CAD) for the fiscal year 2016 contracted by 6.8% to USD 2.5 billion as compared to USD 2.7 billion in the same period last year. Workers’ remittances, despite looming concerns of slowdown in Gulf region, remained upbeat clocking in at USD 19.9 billion (up 6.4% year-on-year) as compared to USD 18.7 billion during the last fiscal year. The current account deficit was further alleviated with an impressive surge of 39% in Foreign Direct Investments (FDI) which clocked in at USD 1.3 billon as compared to USD 0.9 billion last year. This improvement came mainly on account of investment inflows coming from the China-Pakistan Economic Corridor (CPEC) project.

Export, on the other hand, underwent decline of 8.6% on the back of global meltdown and low commodity prices. Nevertheless, imports bill was reduced by mere 2% owing to substantial increase in non-oil imports (up 79% to USD 31.8 billion). Accordingly, balance of payments position clocked in at USD -2.6 billion, declining by mere 0.3% as compared to the last year. CAD as % of GDP clocked in at -0.9% as compared to -0.17% during the last fiscal year.

According to Pakistan Bureau of Statistics (PBS), overall Large Scale Manufacturing (LSM) sector has exhibited growth of 3.45% during July-May 2015-16 when compared with the same period of last year. Major industries driving the growth were a) automobiles (up 18%), b) fertilizers (up 15%), c) nonmetallic mineral products (up 11%), d) leather products (up 9%), e) chemicals (up 9%), f) rubber products (up 7%) and g) pharmaceuticals (up 6%).

During the year, broad-based improvements in underlying economic indicators facilitated the State Bank of Pakistan (SBP) to cut its policy rate by a cumulative 75bps in FY16; over and above cut of 300bps in FY15. Going forward, GDP growth is anticipated to remain buoyant on the back of construction and development activities under China Pakistan Economic Corridor (CPEC) and strengthened private sector credit growth. Nonetheless, risks pertaining to challenging global environment and its looming impact on exports and remittances growth could be very critical and may undermine the growth prospects.

REPORT OF THE DIRECTORS OF THE MANAGEMENT COMPANY


INCOME DISTRIBUTION

The Board of directors has not approved Final distribution as the income for year is already distributed via Interims distribution at the rate of 5.75% (i.e Rs. 5.75 per unit of par value of Rs.100 each).

MUTUAL FUND RATING

Pakistan Credit Agency (PACRA) has awarded the fund stability rating of “AA+(f)” for Faysal Money Market Fund (FMMF). This rating denotes High degree of stability in Net Asset Value.

CORPORATE GOVERNANCE

A prescribed under clause 5.19.23 of the Listing Regulations of Pakistan Stock Exchange Limited, Statement of Compliance with the Code of Corporate Governance along with the auditors’ report thereon for the year ended June 30, 2016 forms part of this annual report.

1. Statements under clause 5.19.11 of the Code:

a. The financial statements, prepared by the management of the listed Fund, present its state of affairs fairly, the result of its operations, cash flows and changes in equity;

b. Proper books of account of the listed Fund have been maintained; c. Appropriate accounting policies have been consistently applied in preparation of financial statements and

accounting estimates are based on reasonable and prudent judgment; d. International Financial Reporting Standards, as applicable in Pakistan, have been followed in preparation of

financial statements and any departures therefrom has been adequately disclosed and explained; e. The system of internal control is sound in design and has been effectively implemented and monitored; f. There are no significant doubts upon the listed Fund’s ability to continue as a going concern; g. The details of taxes, duties, levies and charges outstanding, are disclosed in the financial statements; h. The number of board and committees’ meetings held during the year and attendance by each director forms part

of this Annual Report; and i. The prescribed pattern of shareholding is given as part of this Annual Report.

The sale and repurchase of units of the Fund carried out by the directors, CEO, COO, CFO, Head of Internal Audit, Company Secretary, their spouses and minor children, and the Management Company are as under:

Trades By: Investment Redemption ------------ (No. of Units) --------- Directors and Key Management Personnel 10,197 Nil

PATTERN OF HOLDING

The Pattern of Holding as at June 30, 2016 of FMMF is given as part of this Annual Report.

AUDITORS

The present auditors Messers M.Yousuf Adil & Co., Chartered Accountants retire and, being eligible, offer themselves for re-appointment. The Board endorses the recommendation of the Audit Committee for re-appointment of Messers M.Yousuf Adil & Co., Chartered Accountants as the auditors for the year ending June 30, 2017.

ACKNOWLEDGEMENT

The Board of Directors of the Management Company is thankful to unit holders for their confidence on the Management, the Securities and Exchange Commission of Pakistan and the management of Pakistan Stock Exchange for their valuable support, assistance and guidance. The Board also thanks the employees of the Management Company and the Trustee for their dedication and hard work.

For and on behalf of the Board

Enamullah KhanKarachi: September 26, 2016 Chief Executive Officer

FUND MANAGER’S REPORT

Economic Review

Pakistan’s economy underwent substantial progress during the course of fiscal year 2016. Almost all the critical macroeconomic indicators exhibited continuous progress which alleviated the GDP growth to reach 8‐year high of 4.7%. The industrial sector activities made significant strides on the back of better energy supply and improved law and order situation. Despite the challenges on external front in the form of declining exports amid deteriorating global growth prospects and heavy agricultural losses, economic recovery process remained on track.

The average inflation during FY16 declined to 47‐year low of 2.86% against 4.53% in the same period last year. Such historical lows were achieved on the back of falling commodity prices and contained food inflation along with help from prudent monetary and fiscal policies. The ‘Perishable Food Items’ and ‘Transport’ heads registered year‐on‐year negative readings at ‐1.82% and ‐5.18% respectively. Likewise, all the other CPI basket items remained benign throughout the year.

International reserve buffers held by State Bank of Pakistan (SBP) were effectively rebuilt during the year. By the year end, foreign exchange reserves reached to USD 18.1 billion, sufficient to finance four months of imports. Muted global oil prices, steady remittances growth, improved Foreign Direct Investments (FDI) and FX borrowing played the much needed role in consolidation of the foreign exchange reserves.

According to the figures of State Bank of Pakistan (SBP), current account deficit (CAD) for the fiscal year 2016 contracted by 6.8% to USD 2.5 billion as compared to USD 2.7 billion in the same period last year. Workers’ remittances, despite looming concerns of slowdown in Gulf region, remained upbeat clocking in at USD 19.9 billion (up 6.4% year‐on‐year) as compared to USD 18.7 billion during the last fiscal year. The current account deficit was further alleviated with an impressive surge of 39% in Foreign Direct Investments (FDI) which clocked in at USD 1.3 billon as compared to USD 0.9 billion last year. This improvement came mainly on account of investment inflows coming from the China‐Pakistan Economic Corridor (CPEC) project.

Export, on the other hand, underwent decline of 8.6% on the back of global meltdown and low commodity prices. Nevertheless, imports bill was reduced by mere 2% owing to substantial increase in non‐oil imports (up 79% to USD 31.8 billion). Accordingly, balance of payments position clocked in at USD ‐2.6 billion, declining by mere 0.3% as compared to the last year. CAD as % of GDP clocked in at ‐ 0.9% as compared to 1.0% during the last fiscal year.

According to Pakistan Bureau of Statistics (PBS), overall Large Scale Manufacturing (LSM) sector has exhibited growth of 3.45% during July‐May 2015‐16 when compared with the same period of last year. Major industries driving the growth were a) automobiles (up 18%), b) fertilizers (up 15%), c) nonmetallic mineral products (up 11%), d) leather products (up 9%), e) chemicals (up 9%), f) rubber products (up 7%) and g) pharmaceuticals (up 6%).

During the year, broad‐based improvements in underlying economic indicators facilitated the State Bank of Pakistan (SBP) to cut its policy rate by a cumulative 75bps in FY16; over and above cut of 300bps in FY15. Going forward, GDP growth is anticipated to remain buoyant on the back of construction and development activities under China Pakistan Economic Corridor (CPEC) and strengthened private sector credit growth. Nonetheless, risks pertaining to challenging global environment and its looming impact on exports and remittances growth could be very critical and may undermine the growth prospects.

Money Market Review

SBP announced six MPS – Monetary Policy Statement during FY16, where discount rate and policy rate was slashed by 75bps from 7.00% to 6.25% and 6.5% to 5.75% respectively which is the all‐time low interest rate in the history of Pakistan on the back of i) Going forward higher inflationary projections, ii) limited credit uptick, iii) Balance of payments risk in the form of higher trade deficit going forward but China Pakistan Economic Corridor bodes well for future prospects of foreign inflows in the country.

During the period under discussion of FY16 money market mostly remained illiquid and SBP conducted various OMO – Injections where the total injected amount was PKR 57,764.15bn and the total participation amount was PKR 60,685.21bn. The weighted average rate of the injected amount during the quarter was 6.10%. During the same period 8 OMO‐Mop ups were witnessed where the mopped up amount was PKR 497.35mn at weighted average rate of 6.06%.

SBP conducted fortnightly T bill auctions during FY16 where the total accepted amount was PKR 4,523.49bn where the total stipulated target of SBP was PKR 5,175bn and the cuts offs were lowered by max 89bps across all three tenors. Cut‐offs for the last auction of the FY16 were; 3M – 5.9017%, 6M – 5.9250% and 12M – 5.9590% where they were 6.7963%, 6.8011% and 6.8221% for 3M, 6M & 12M at the start of FY16 .


June 30, June 30,2016 2015

8.5 Net unrealised gain on revaluation of investments - designated 'at fair value through profit or loss'

Market value of investments - 2,056,393,600 Less: cost of investments - (2,056,784,728)

- (391,128)

Net unrealised loss on investments at thebeginning of the year 391,128 - Realised on disposal during the year (391,128) -

- - - (391,128)

9. PREPAYMENTS, DEPOSITS AND OTHER RECEIVABLES- considered good

Security deposit 100,000 100,000 Prepayments - 87,014 Return receivable on bank balances and term deposit receipts 9.1 8,730,010 4,394,820 Advance income recoverable 9.2 283,666 - Markup receivable on Clean Placements 1,264,227 -

10,377,903 4,581,834

9.1

9.2

June 30, June 30,2016 2015

10. PRELIMINARY EXPENSES AND FLOATATION COSTS

Preliminary expenses and floatation costs 271,259 878,254 Amortisation during the year (271,259) (606,995)

- 271,259

10.1

June 30, June 30,2016 2015

11. RECEIVABLE AGAINST SALE OF UNITS

Receivable against sale of units 11.1 154,810,702 -

11.1

June 30, June 30,2016 2015

Note12. PAYABLE TO THE MANAGEMENT COMPANY

Management fee payable 12.1 700,802 1,976,357 Sales tax on management fee payable 12.2 98,112 296,455

798,914 2,272,812

12.1

-------------- (Rupees) --------------

This includes return receivable amounting to Rs. 21,269 (June 30, 2015: Rs. 14,294) on balance heldwith Faysal Bank Limited, a related party.

Preliminary expenses and floatation costs represent expenditure incurred prior to the commencementof operations of the Fund as incurred by the Management Company and have been amortised over aperiod of five years commencing from December 13, 2010.

-------------- (Rupees) --------------

The Management Company is entitled to a remuneration for services rendered to the Fund under theprovisions of the NBFC Regulations during the first five years of a Fund’s existence of an amount notexceeding three percent of the average annual net assets of the Fund and thereafter of an amountequal to two percent of such assets. The Management Company has charged its remuneration at therate of 0.80% per annum (June 30, 2015: 0.80% per annum) of the daily net asset value of the Fund .

-------------- (Rupees) --------------

The income of mutual funds is exempt from tax under clause (99) of Part I of the Second Schedule of the Income Tax Ordinance 2001. However, advance income tax has been deducted by banks on bank profit paid to the Fund. The Fund has recorded the amount as advance income tax as it is confident that the amount will be returned/adjusted.

-------------- (Rupees) --------------

This represents receivable amount from Faysal Saving Growth Fund on account of conversion / switching of units on the request of invetors. The amount has been subsequently received.


REVIEW REPORT TO THE MEMBERS ON THE STATEMENT OF COMPLIANCE WITH THE CODE OF


We have reviewed the enclosed Statement of Compliance with the best practices contained in the Code of Corporate Governance (the Code) prepared by the Board of Directors of Faysal Asset Management Limited, the Management Company of Faysal Money Market Fund (the Fund) for the year ended June 30, 2016 to comply with the requirements of Regulations of the Karachi and Pakistan Stock Exchanges where the Fund is listed.

The responsibility for compliance with the Code is that of the Board of Directors of the Management Company. Our responsibility is to review, the extent where such compliance can be objectively verified, whether the Statement of Compliance reflects the status of the Management Company's compliance with the provisions of the Code and report if it does not and to highlight any non-compliance with the requirements of the Code. A review is limited primarily to inquiries of the Management Company's personnel and review of various documents prepared by the Management Company to comply with the Code.

As a part of our audit of the financial statements we are required to obtain an understanding of the accounting and internal control systems sufficient to plan the audit and develop an effective audit approach. We are not required to consider whether the Board of Directors' statement on internal control covers all risks and controls or to form an opinion on the effectiveness of such internal controls, the Management Company's corporate governance procedures and risks.

The Code requires the Management Company to place before the Audit Committee, and upon recommendation of the Audit Committee, place before the Board of Directors for their review and approval its related party transactions distinguishing between transactions carried out on terms equivalent to those that prevail in arm's length transactions and transactions which are not executed at arm's length price and recording proper justification for using such alternate pricing mechanism. We are only required and have ensured compliance of this requirement to the extent of the approval of the related party transactions by the Board of Directors upon recommendation of the Audit Committee. We have not carried out any procedures to determine whether the related party transactions were undertaken at arm's length price or not.

Based on our review, nothing has come to our attention which causes us to believe that the Statement of Compliance does not appropriately reflect the Management Company's compliance, in all material respects, with the best practices contained in the Code as applicable to the Management Company for the year ended June 30, 2016.

Further, we highlight below instances of non-compliance with the requirements of the Code as reflected in the note reference where these are stated in the Statement of Compliance:

Note reference Description 4 There had been a casual vacancy of the Board of Directors which has not been

filled within the stipulated time.

16 The Audit Committee meeting was not held in the quarter ended September 30, 2015.

Chartered Accountants

KarachiDate: September 26, 2016

We have reviewed the enclosed Statement of Compliance with the best practices contained in the Code of Corporate Governance (the Code) prepared by the Board of Directors of Faysal Asset Management Limited, the Management Company of Faysal Money Market Fund (the Fund) for the year ended June 30, 2016 to comply with the requirements of Regulations of the Karachi and Pakistan Stock Exchanges where the Fund is listed.

The responsibility for compliance with the Code is that of the Board of Directors of the Management Company. Our responsibility is to review, the extent where such compliance can be objectively verified, whether the Statement of Compliance reflects the status of the Management Company's compliance with the provisions of the Code and report if it does not and to highlight any non-compliance with the requirements of the Code. A review is limited primarily to inquiries of the Management Company's personnel and review of various documents prepared by the Management Company to comply with the Code.

As a part of our audit of the financial statements we are required to obtain an understanding of the accounting and internal control systems sufficient to plan the audit and develop an effective audit approach. We are not required to consider whether the Board of Directors' statement on internal control covers all risks and controls or to form an opinion on the effectiveness of such internal controls, the Management Company's corporate governance procedures and risks.

The Code requires the Management Company to place before the Audit Committee, and upon recommendation of the Audit Committee, place before the Board of Directors for their review and approval its related party transactions distinguishing between transactions carried out on terms equivalent to those that prevail in arm's length transactions and transactions which are not executed at arm's length price and recording proper justification for using such alternate pricing mechanism. We are only required and have ensured compliance of this requirement to the extent of the approval of the related party transactions by the Board of Directors upon recommendation of the Audit Committee. We have not carried out any procedures to determine whether the related party transactions were undertaken at arm's length price or not.

Based on our review, nothing has come to our attention which causes us to believe that the Statement of Compliance does not appropriately reflect the Management Company's compliance, in all material respects, with the best practices contained in the Code as applicable to the Management Company for the year ended June 30, 2016.


REVIEW REPORT TO THE MEMBERS ON THE STATEMENT OF COMPLIANCE WITH THE CODE OF


Further, we highlight below instances of non-compliance with the requirements of the Code as reflected in the note reference where these are stated in the Statement of Compliance:

Note reference Description 4 There had been a casual vacancy of the Board of Directors which has not been

filled within the stipulated time.

16 The Audit Committee meeting was not held in the quarter ended September 30, 2015.

Chartered Accountants

KarachiDate: September 26, 2016


This statement is being presented to comply with the Code of Corporate Governance (the CCG) contained in Paragraph 5.19 of Chapter 5 of Pakistan Stock Exchange Limited’s Regulations (Formerly: Karachi Stock Exchange) for the purpose of establishing a framework of good governance, whereby a listed company is managed in compliance with the best practices of Corporate Governance. The Board of Directors (the Board) of Faysal Asset Management Limited (the Management Company), an unlisted public company, manages the affairs of Faysal Money Market Fund (the Fund). The Fund being a unit trust open end scheme does not have its own Board of Directors. The Management Company has applied the principles contained in the Code to the Fund in the following manner:

1. The Management Company encourages representation of independent non-executive directors. At present, the Board includes:

The independent directors meet the criteria of independence under clause 5.19.1 (b) of the CCG. 2. The directors have confirmed that none of them are serving as a director on more than seven listed companies,

including the Management Company.

3. All the resident directors of the Management Company are registered taxpayers and none of them have defaulted in payment of any loan to a banking company, a DFI or an NBFI, or being a Broker of a stock exchange, has been declared as a defaulter by that stock exchange.

4. A casual vacancy occurred on the board on 11 December 2015, which has subsequently been filled on 9th August, 2016, after soliciting necessary approvals from the Security and Exchange Commission of Pakistan.

5. The Management Company has prepared a “Code of Conduct” and has ensured that appropriate steps have been taken to disseminate it throughout the company along with its supporting policies and procedures.

6. The Board has developed a vision / mission statement, an overall corporate strategy and significant policies for the Fund. A complete record of particulars of significant policies along with the dates on which these were approved or amended has been maintained.

7. All the powers of the Board have been duly exercised and decisions on material transactions, including appointment, determination of remuneration and terms and conditions of employment of the Chief Executive Officer (CEO) and other executive and non-executive directors have been taken by the Board / shareholders.

8. The meetings of the Board were presided over by the Chairman and, in his absence, by a director elected by the Board for this purpose and the Board met at least once in every quarter, during the year. Written notices of the Board meetings, along with agenda and working papers, were circulated at least seven days before the meetings. The minutes of the meetings were appropriately recorded and circulated.

9. All the directors of the Management Company are well-conversant with the relevant laws applicable to the Fund and Management Company, its policies and procedures and provisions of memorandum and articles of association and are aware of their duties and responsibilities. The Compliance with the requirement of certification of directors is ensured.

10. The board has approved the appointment of Head of Internal Audit including his remuneration and terms and conditions of employment.

11. The Directors' report relating to the Fund for the year ended June 30, 2016 has been prepared in compliance with the requirements of the Code and fully describes the salient matters required to be disclosed.

STATEMENT OF COMPLIANCE WITH THE BEST PRACTICES OF THECODE OF CORPORATE GOVERNANCE

Independent Director Mr. Osman Asghar Executive Director Mr. Enamullah Khan (CEO)Non-Executive Director Mr. Nauman Ansari Syed Ibad-Ur-Rehman Chishti Mr. Razi-Ur-Rahman Khan Mr. Mohammad Zahid Ahmed

Category Names


12. The financial statements of the Fund were duly endorsed by the CEO and CFO of the Management Company before approval of the Board.

13. The Directors, CEO, and executives do not hold any interest in the units of the Fund other than that disclosed in the Directors' report.

14. The Management Company has complied with all the corporate and financial reporting requirements of the CCG.

15. The Board has formed an Audit Committee. It comprises of three members, all of whom are non-executive directors of the Management Company including the chairman of the Committee.

16. The meetings of the Audit Committee were held at least once in every quarter and prior to the approval of interim and final results of the Fund as required by the CCG. However, the meeting due in first quarter of the year 2016 was held on October 6, 2015 due to delay in finalisation of the financial statements for the year ended June 30, 2015. The terms of reference of the Committee have been formed and advised to the Committee for compliance.

17. The Board has formed an HR and Compensation Committee. It comprises of four members of whom two are non-executive directors and the chairman of the Committee is an independent director.

18. The Management Company has outsourced the internal audit function to KPMG Taseer Hadi & Co. Chartered Accountants (the Firm) who are considered suitably qualified and experienced for the purpose and are conversant with the policies and procedures of the Fund.

19. The statutory auditors of the Fund have confirmed that they have been given a satisfactory rating under the Quality Control Review program of the Institute of Chartered Accountants of Pakistan (ICAP), that they or any of the partners of the firm, their spouses and minor children do not hold shares of the Management Company or units of the Fund and that the firm and all its partners are in compliance with the International Federation of Accountants (IFAC) guidelines on code of ethics as adopted by the ICAP.

20. The statutory auditors or the persons associated with them have not been appointed to provide other services except in accordance with the listing regulations and the auditors have confirmed that they have observed IFAC guidelines in this regard.

21. The ‘closed period’, prior to the announcement of interim / final results, and business decisions, which may materially affect the market price of Fund’s units, was determined and intimated to directors, employees and stock exchange.

22. Material / price sensitive information has been disseminated among all market participants at once through stock exchange.

23. We confirm that all applicable material principles enshrined in the Code have been complied with.

Karachi Enamullah Khan Dated: September 26, 2016 Chief Executive Officer

STATEMENT OF COMPLIANCE WITH THE BEST PRACTICES OF THECODE OF CORPORATE GOVERNANCE


INDEPENDENT AUDITORS’ REPORT TO THE UNIT HOLDERS

INDEPENDENT AUDITORS’ REPORT TO THE UNIT HOLDERS


September 26, 2016

STATEMENT OF ASSETS AND LIABILITIESAS AT JUNE 30, 2016


June 30, June 30,

2016 2015Note

Assets

Bank balances and term deposit receipts 7 1,111,521,276 924,853,087 Investments 8 200,000,000 2,438,353,840 Prepayments, deposits and other receivables 9 10,377,903 4,581,834 Preliminary expenses and floatation costs 10 - 271,259 Receivable against sale of units 11 154,810,702 - Total assets 1,476,709,881 3,368,060,020

Liabilities

Payable to the Management Company 12 798,914 2,272,812 Remuneration payable to the Trustee 13 208,086 246,135 Accrued and other liabilities 14 35,160,756 35,916,504 Payable against redemption of units 15 683,211,753 - Total liabilities 719,379,509 38,435,451

Net assets 757,330,372 3,329,624,569

Unit holders’ fund (as per the statement attached) 757,330,372 3,329,624,569 TRUE TRUE

Contingencies and commitments 16

Number of units in issue 7,491,230 32,947,183

Net asset value per unit 101.10 101.06

The annexed notes from 1 to 24 form an integral part of these financial statements.

_____________________ _____________ ______________Chief Executive Officer Director Director

For Faysal Asset Management Limited(Management Company)

FAYSAL MONEY MARKET FUNDSTATEMENT OF ASSETS AND LIABILITIESAS AT JUNE 30, 2016

-------------- (Rupees) --------------

--------- (Number of units) ---------

-------------- (Rupees) --------------

INCOME STATEMENTFOR THE YEAR ENDED JUNE 30, 2016


June 30, June 30,2016 2015

Note ----------- (Rupees) -----------

IncomeProfit earned on government securities - designated 'at

fair value through profit or loss' 92,791,406 178,442,713 Return on bank balances and term deposit receipts 51,376,369 131,945,745 Return on clean placements designated 'held to maturity' 8,399,041 17,514,483 Return on certificates of investment and commercial papers

classified as 'held to maturity' 440,364 72,741,448 Net gain on investments - designated 'at fair value

through profits or loss';-Net capital gain on sale of investments 1,474,510 8,168,553 -Net unrealised gain / (loss) on revaluation of investments 8.5 - (391,128)

1,474,510 7,777,425 Total income 154,481,690 408,421,814

ExpensesRemuneration of the Management Company 12.1 18,089,643 34,381,237 Provision for indirect taxes and duties 14.3 3,308,263 6,326,148 Sales tax on management fee 12.2 2,532,550 5,157,185 Remuneration of the Trustee 13.1 2,445,267 3,972,369 Sales tax on Trustee fee 13.2 342,337 - Brokerage 278,240 634,565 Bank charges 159,619 113,907 Auditors' remuneration 17 489,560 478,099 SECP annual fee 14.1 1,695,613 3,223,224 Legal and professional - 142,857 Fees and subscriptions 352,000 270,025 Amortisation of preliminary expenses and floatation cost 10 271,259 606,995 Printing and other expenses 247,416 284,704 Provision for Workers' Welfare Fund 14.2 - 1,569,504 Total expenses 30,211,767 57,160,819 Net income from operating activities 124,269,923 351,260,995

Element of income/ (loss) and capital (losses) / gains included in prices of units sold less those in units redeemed - net (81,450,843) (274,355,282)

Net income for the year before taxation 42,819,080 76,905,713

Taxation 18 - - Net income for the year after taxation 42,819,080 76,905,713

Other comprehensive income for the year - - Total comprehensive income for the year 42,819,080 76,905,713


_____________________ _______________ _______________Chief Executive Officer Director Director

FAYSAL MONEY MARKET FUNDINCOME STATEMENTFOR THE YEAR ENDED JUNE 30, 2016



DISTRIBUTION STATEMENTFOR THE YEAR ENDED JUNE 30, 2016

June 30, June 30,2016 2015

Undistributed income brought forward [includes unrealised loss on investments of Rs. 391,128

(2014: unrealised gain of Rs. Nil)] 24,924,480 18,114,057

Interim bonus distribution for the period ended June 18, 2015 @ Rs. 0.75 per unit declared for distribution on June 19, 2015 - (2,112,673)

Interim cash distribution for the period ended June 18, 2015 @ Re. 0.75 per unit declared for distribution on June 19, 2015 - (4,072,206)

Further interim cash distribution for the period ended June 18, 2015 @ Rs.7.75 per unit declared for distribution on June 19, 2015 - (63,910,411)

Interim cash distribution for the period ended June 28, 2016 @ Rs. 5.75 (43,726,268) - per unit declared for distribution on June 29, 2016

Net income for the year after taxation 42,819,080 76,905,713

Undistributed income carried forward 24,017,292 24,924,480 [includes unrealised gain on investments of Rs. Nil

(2015: unrealised loss on investments of Rs. 391,128)]


_____________________ ________________ ______________Chief Executive Officer Director Director

(Management Company)

FAYSAL MONEY MARKET FUNDDISTRIBUTION STATEMENTFOR THE YEAR ENDED JUNE 30, 2016

------------ (Rupees) ------------

For Faysal Asset Management Limited

CASH FLOW STATEMENTFOR THE YEAR ENDED JUNE 30, 2016


June 30, June 30,2016 2015

NoteCASH FLOWS FROM OPERATING ACTIVITIESNet income for the year before taxation 42,819,080 76,905,713

Adjustments for non-cash and other items:

Profit earned on government securities - designated 'atfair value through profit or loss' (92,791,406) (178,442,713)

Return on bank balances and term deposit receipts (51,376,369) (131,945,745) Return on clean placements designated 'held to maturity' (8,399,041) (17,514,483) Return on certificates of investment and commercial

papers designated 'held to maturity' (440,364) (72,741,448) Net capital gain on sale of investments

- designated 'at fair value through profit or loss' (1,474,510) (8,168,553) Net unrealised (gain) / loss on revaluation of investments

- designated 'at fair value through profit or loss' - 391,128 Element of loss / (income) and capital losses / (gains) included in

prices of units sold less those in units redeemed - net 81,450,843 274,355,282 Amortisation of preliminary expense and floatation costs 271,259 606,995

(29,940,508) (56,553,824) (Increase) / decrease in assetsPrepayments, deposits and other receivables (196,652) 9,181,506

Increase / (decrease) in liabilities Payable to the Management Company (1,473,898) (1,471,182) Remuneration payable to the Trustee (38,049) (118,147) Accrued and other liabilities (4,062,788) 10,407,030

(5,574,735) 8,817,701

Proceeds from sale of investments 14,165,846,806 34,922,767,128

Payment made against purchase of investments (11,836,880,263) (35,462,940,577) Profits and returns received 61,576,610 257,483,811 Net cash generated from / (used in) operating activities 2,354,831,258 (321,244,255)

CASH FLOWS FROM FINANCING ACTIVITIESAmounts received against issue of units 6,932,186,958 12,133,616,520 Payments made against redemption of units (9,056,623,759) (14,278,934,920) Dividend paid (43,726,268) (74,401,226) Net cash used in financing activities (2,168,163,069) (2,219,719,626) Net increase in cash and cash equivalents during the year 186,668,189 (2,540,963,881) Cash and cash equivalents at the beginning of the year 924,853,087 3,465,816,968 Cash and cash equivalents at the end of the year 7 1,111,521,276 924,853,087


Chief Executive Officer Director Director


FAYSAL MONEY MARKET FUNDCASH FLOW STATEMENTFOR THE YEAR ENDED JUNE 30, 2016

-------------- (Rupees) --------------


June 30, June 30,2016 2015

Rating category

AA+, AA, AA- 89.51 99.99 Unrated 10.49 0.01

100.00 100.00

June 30, June 30,2016 2015

Commercial banks 75.88 70.86 Financial Institutions 13.63 29.13 Others 10.49 0.01

100.00 100.00

20.4 Unit Holders' Fund

---------------- (%) ----------------

In accordance with the risk management policies, the Fund endeavours to invest the subscriptionsreceived in appropriate investments while maintaining sufficient liquidity to meet redemption requests,such liquidity being augmented by disposal of investments where necessary.

Under the NBFC Regulations 2008, the minimum size of an open end scheme shall be one hundredmillion rupees at all the times during the life of the scheme.

% of assets exposed to credit risk

The capital of the Fund is represented by the net assets attributable to holders of redeemable units. Thecapital structure depends on the issuance and redemption of units. The Fund’s objective when managingunit holders’ fund is to safeguard the Fund’s ability to continue as a going concern in order to seekmaximum preservation of unit holders’ fund and an optimum rate of return by investing in avenues havinggood credit rating and liquidity and to maintain a strong capital base to support the development of theinvestment activities of the Fund.

The Fund has no restrictions or specific capital requirements on the subscription and redemption of units.

The table below analyses the Fund's concentration of credit risk by industrial distribution:

FOR THE YEAR ENDED JUNE 30, 2016STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUND


June 30, June 30,2016 2015

Net asset value per unit at the beginning of the year 101.06 100.86

Net asset value per unit at the end of the year 101.10 101.06

Net assets at the beginning of the year 3,329,624,569 5,191,664,591

Amounts received on issue of units * 7,086,997,660 12,133,616,520 Amounts paid on redemption of units ** (9,739,835,512) (14,278,934,920)

(2,652,837,852) (2,145,318,400) Element of (income) / loss and capital losses / (gains) included in

prices of units sold less those in units redeemed - net 81,450,843 274,355,282

Interim cash distribution for the period ended June 18, 2015 @ Re. 0.75per unit declared for distribution on June 19, 2015 - (4,072,206)

Interim cash distribution for the period ended June 18, 2015 @ Rest 7.75per unit declared for distribution on June 19, 2015 - (63,910,411)

Interim cash distribution for the period ended June 28, 2016 @ Re. 5.75 (43,726,268) - per unit declared for distribution on June 29, 2016

Net capital gain on sale of investments 1,474,510 8,168,553 Net unrealised gain on revaluation of investments - (391,128) Other net income for the year 41,344,570 69,128,288 Other comprehensive income for the year - - Total comprehensive income for the year 42,819,080 76,905,713

Net assets at the end of the year 757,330,372 3,329,624,569

* Number of units issued (including Nil bonus unitsissued during the year ended June 30, 2016 and 3,865,676bonus units issued during the year ended June 30, 2015) 67,584,843 119,091,318

** Number of units redeemed 93,040,796 137,620,472


_____________________ _________________ _________________Chief Executive Officer Director Director


FAYSAL MONEY MARKET FUNDSTATEMENT OF MOVEMENT IN UNIT HOLDERS' FUNDFOR THE YEAR ENDED JUNE 30, 2016

------------- (Rupees) -------------

-------- (Number of units) --------



FOR THE YEAR ENDED JUNE 30, 2016NOTES TO THE FINANCIAL STATEMENTS

1. LEGAL STATUS AND NATURE OF BUSINESS

2. STATEMENT OF COMPLIANCE

3. BASIS OF MEASUREMENT

3.1

3.2 These financial statements are presented in Pak rupees, which is the Fund's functional andpresentation currency.

The Fund is categorised as a "Money Market Scheme" as per the Circular No.7 of 2009 issued by SECP.

The Pakistan Credit Rating Agency Limited (PACRA) has assigned a "AA+(f)" stability rating to FaysalMoney Market Fund as of December 31, 2015.

JCR - VIS has awarded an "AM3++ " rating to the Management Company as of May 4, 2016.

These financial statements have been prepared in accordance with approved accounting standards asapplicable in Pakistan. Approved accounting standards comprise such International Financial ReportingStandards (IFRS) issued by the International Accounting Standards Board (IASB) as are notified underthe Companies Ordinance, 1984, the requirements of the Trust Deed, the NBFC Rules, the Non BankingFinance Companies and Notified Entities Regulation, 2008 (the NBFC Regulations) and directives issuedby the SECP. Wherever the requirements of the Trust Deed, the NBFC Rules, the NBFC Regulations orthe directives issued by the SECP differ with the requirements of IFRS, the requirements of the TrustDeed, the NBFC Rules, the NBFC Regulations or the requirements of the said directives prevail.

These financial statements have been prepared under the historical cost convention, exceptfor certain investments which are accounted for as stated in notes 4.3 and 4.4 below.

FAYSAL MONEY MARKET FUNDNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED JUNE 30, 2016

Faysal Money Market Fund (the Fund) has been established under the Non-Banking Finance Companies(Establishment and Regulation), Rules 2003 (the NBFC Rules) and has been authorised as a unit trustscheme by the Securities and Exchange Commission of Pakistan (SECP) on June 04, 2009. It has beenconstituted under a Trust Deed, dated April 22, 2009 under the name of Faysal Islamic Balanced GrowthFund and thereafter as Faysal Money Market Fund vide supplemental Trust Deed, dated October 18,2010 between Faysal Asset Management Limited (the Management Company), a company incorporatedunder the Companies Ordinance, 1984 and Central Depository Company of Pakistan Limited (CDC) asthe Trustee, also incorporated under the Companies Ordinance, 1984.

The Fund is an open ended money market fund and offers units for public subscription on a continuousbasis. The units are transferable and can also be redeemed by surrendering to the Fund. The units arelisted on Pakistan Stock Exchange Limited (Formerly Karachi Stock Exchange Limited). The Fund waslaunched on December 13, 2010.

The principal activity of the Fund is to make investments in fixed income securities including moneymarket instruments.


NOTES TO THE FINANCIAL STATEMENTS

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

4.1 New Standards

IFRS 10 – Consolidated Financial StatementsIFRS 11 – Joint ArrangementsIFRS 12 – Disclosure of Interests in Other EntitiesIFRS 13 – Fair Value Measurement

4.2

4.3 Investments

All regular way purchases / sales of investments that require delivery within the time frame established by the regulation of market convention are recognised on the trade date, i.e. the date on which theFund commits to purchase / sell the investment. Regular way purchases / sales of investments requiredelivery of securities within the period generally established by the regulation or market conventionsuch as "T+2".

Element of income / (loss) and capital gains / (losses) included in prices of units issued lessthose in units redeemed

An equalisation account called the "Element of income / (loss) and capital gains / (losses) included inprices of units issued less those in units redeemed" (the element) is created in order to prevent thedilution of per unit income and distribution of income already paid out on redemption.

The element is arrived at by comparing the unit prices with opening Ex - NAV at the beginning of thefinancial year. The element so computed is recognised in the income statement except to the extentthat the amount represented by unrealised appreciation / diminution arising on available-for-saleinvestments is included in distribution statement.

The net “element of income / (loss) and capital gains / (losses) included in prices of units sold lessthose in units redeemed” during an accounting period is transferred to the income statement.

The investments of the Fund, upon initial recognition, are classified at fair value through profit or loss,available-for-sale or held to maturity investments as appropriate.

All investments, are initially measured at fair value plus, in the case of investments not at fair valuethrough profit or loss, transaction costs that are directly attributable to acquisition.

The accounting policies adopted in the preparation of these financial statements are consistent with those ofthe previous financial year except as described in note 4.1.

The Fund has adopted the following accounting standard which became effective for the current year:

The adoption of the above accounting standards did not have any effect on the financial statementsexcept for certain disclosures due to adoption of IFRS 13 (see note 21).



4.3.1 At fair value through profit or loss

-

-

These investments are initially recognised at fair value, being the cost of the consideration given.

4.3.2 Held to maturity investments

4.3.3 Available-for-sale investments

Fair value of investments is determined as follows:

Government securities

Listed shares

Debt securities

Investments which are not classified in any of the preceding categories are designated available-for-sale investments. After initial measurement, such investments are measured at fair value withunrealised gain or loss recognised directly in the unit holders' fund until the investment isderecognised or determined to be impaired at which time the cumulative gain or loss previouslyrecognised in unit holders' fund is taken to the income statement.

These are valued by reference to the quotations obtained from Reuters page.

These are valued on the basis on closing market prices quoted on the respective stock exchange.

These are valued at the rates quoted by Mutual Funds Association of Pakistan (MUFAP) inaccordance with the SECP's Circular No.33 of 2012 dated October 24, 2012, read with Regulation 66(b) of the NBFC Regulation.

This category has two sub-categories, namely; financial instruments held-for-trading, and thosedesignated at fair value through profit or loss.

Investments which are acquired principally for the purposes of generating profit from shortterm fluctuation in price or are part of the portfolio in which there is recent actual pattern ofshort term profit taking are designated held-for-trading.

Investments designated at fair value through profit or loss upon initial recognition includethose group of financial assets which are managed and their performance evaluated on afair value basis, in accordance with the documented risk management / investment strategy.

After initial measurement, investment at fair value through profit or loss are carried at fair value andthe gains or losses on revaluation are recognised in the income statement.

Investment with fixed maturities and fixed or determinable payments are designated 'held-till-maturityinvestments' when management has both the intention and ability to hold to maturity. After initialmeasurement, such investments are carried at amortised cost less any provision for impairmentexcept for in case of debt securities and government securities, which are carried at fair value inaccordance with the requirements of the NBFC Regulations.



4.4 Derivatives

4.5 Securities under repurchase / resale agreements

4.6 Provisions

4.7 Issue and redemption of units

Provisions are recognised when the Fund has a present legal or constructive obligation as a result ofpast events, it is probable that an outflow of resources embodying economic benefits will be requiredto settle the obligation and a reliable estimate of the obligation can be made. Provisions are regularlyreviewed and adjusted to reflect the current best estimate.

Units issued are recorded at the offer price prevalent on the day on which application form, (completein all respects) is received. The offer price represents the net asset value of units at the end of the dayplus the allowable sales load. The sales load is payable to the Management Company as processingfee. Issue of units is recorded on acceptance of application for sale.

Units redeemed are recorded at the redemption price, prevalent on the day on which the redemptionform (complete in all respects) is accepted. The redemption price represents the net asset value ofunits at the end of the day. Redemption of units is recorded on acceptance of application forredemption.

Derivative instruments held by the Fund generally comprise of futures contracts, options and forwardscontracts etc. in the capital market. These are initially recognised at cost and are subsequentlyremeasured at their fair value. The fair value of derivative instruments is calculated as being the netdifference between the contract price and the closing price reported on the primary exchange of theinstrument. Derivative with positive market values (un-realised gains) are included in other assets andderivatives with negative market values (un-realised losses) are included in other liabilities in thestatement of assets and liabilities. The resultant gains and losses are included in income statement.

Derivative financial instruments entered into by the Fund do not meet the hedging criteria as definedby IAS-39 Financial Instruments: Recognition and Measurement, consequently hedge accounting isnot used by the Fund.

Transactions of purchase under resale (reverse-repo) of marketable and government securities areentered into at contracted rates for specified periods of time. Securities purchased with acorresponding commitment to resell at a specified future date (reverse-repos) are not recognised inthe statement of assets and liabilities. Amounts paid under these agreements are included inreceivable in respect of reverse repurchase transactions. The difference between purchase and resaleprice is treated as income from reverse repurchase transactions and accrued over the life of thereverse-repo agreement.

Transactions of sale under repurchase (repo) of marketable and government securities are enteredinto at contracted rates for specified periods of time. Securities sold with a simultaneous commitmentto repurchase at a specified future date (repos) continue to be recognised in the statement of assetsand liabilities and are measured in accordance with accounting policies for investment securities. Thecounterparty liabilities for amounts received under these transactions are recorded as financialliabilities. The difference between sale and repurchase price is treated as borrowing charges andaccrued over the life of the repo agreement.



4.8 Cash and cash equivalents

4.9 Revenue recognition

4.10 Expenses

4.11 Taxation

4.12 Net asset value (NAV) per unit

4.13 Distribution to unit holders

4.14 Preliminary expenses and floatation costs

All expenses, including management fee, SECP fee and trustee fee are recognised in the incomestatement on an accrual basis.

The Fund is exempt from taxation under clause 99 of Part I of the 2nd Schedule to the Income TaxOrdinance, 2001, subject to the condition that not less than 90% of its accounting income excludingrealised and unrealised capital gains for the year is distributed amongst the unit holders.

The net asset value per unit disclosed in the statement of assets and liabilities is calculated bydividing the net assets of the Fund by the number of units in issue at the year end.

Distribution to unit holders made subsequent to the statement of assets and liabilities date areconsidered as non-adjusting events and are recognised in the financial statements in the period inwhich such dividends are declared and approved by the Board of Directors of the ManagementCompany.

Preliminary expenses and floatation costs represent expenditure incurred in connection withincorporation, registration, establishment and authorisation of the Fund till the close of the InitialPublic Offering period. These costs are amortised over a period not exceeding sixty months inaccordance with the Trust deed.

Units redeemed are recorded at the redemption price, prevalent on the day on which the redemptionform (complete in all respects) is accepted. The redemption price represents the net asset value ofunits at the end of the day. Redemption of units is recorded on acceptance of application forredemption.

Cash and cash equivalents comprise cash at banks and short-term deposits with an original maturityof three months or less. Cash and cash equivalents are carried in the statement of assets andliabilities at cost.

Unrealised gains or losses arising on revaluation of investments designated 'at fair value throughprofit or loss' are included in the income statement in the period in which they arise.

Mark-up on bank balances, term deposit receipts, government securities, clean placements andcertificate of investment are recognised on a time proportion basis using effective interest ratemethod.

Gain or loss on sale of marketable and government securities is accounted for in the year in which itarises.



4.15 Financial assets and financial liabilities

Impairment of financial assets

All financial assets and financial liabilities are recognised at the time when the Fund becomes a partyto the contractual provisions of the instrument. Financial assets are derecognised when thecontractual rights to receive cash flows related to the asset expires. Financial liabilities arederecognised when they are extinguished, that is, when the obligation specified in the contract isdischarged, cancelled, or expires. Any gain or loss on derecognition of the financial assets andfinancial liabilities is taken to income statement currently.

Financial assets carried in the statement of assets and liabilities include bank balances, deposits andother receivables and investments.

Financial liabilities carried in the statement of assets and liabilities include remuneration payable tothe Management Company, remuneration payable to the Trustee and accrued and other liabilities.

An assessment is made at each reporting date to determine whether there is objective evidence that aspecific financial asset may be impaired. If such evidence exists, any impairment loss, is recognisedin the income statement.


(a)

(b)

(c)


4.16 Zakat payable














(a)

(b)

(c)


4.16 Zakat payable











6.

Standard



Standard









January 01, 2016

January 01, 2018

January 01, 2017

January 01, 2016



Effective date



Not yet finalized



January 01, 2016

January 01, 2016

January 01, 2016

January 01, 2017


January 01, 2016



6.

Standard



Standard









January 01, 2016

January 01, 2018

January 01, 2017

January 01, 2016



Effective date



Not yet finalized



January 01, 2016

January 01, 2016

January 01, 2016

January 01, 2017


January 01, 2016

StandardsIFRS 1 - First time adoption of International Financial Reporting StandardsIFRS 9 – Financial Instruments: Classification and MeasurementIFRS 14 – Regulatory Deferral AccountsIFRS 15 – Revenue from Contracts with CustomersIFRS 16 – Leases

June 30, June 30,2016 2015

Note7. BANK BALANCES AND TERM DEPOSIT RECEIPTS

Cash at bank - PLS saving accounts 7.1 1,111,521,276 324,853,087 Term deposit receipts 7.2 - 600,000,000

1,111,521,276 924,853,087

7.1

7.2June 30, June 30,

2016 2015Note

8. INVESTMENTS

At fair value through profit or loss -designated 'at fair value through profit or loss'

Government securities 8.1 - 2,056,393,600

Held to Maturity

Clean placements 8.2 200,000,000 101,738,630 Certificate of investment - 280,221,610

200,000,000 381,960,240 200,000,000 2,438,353,840

-------------- (Rupees) --------------

These carry mark-up ranging between 3.8% to 7.6% (June 30, 2015: 4.5% to 6.3%) per annum andinclude a balance of Rs. 2.4 million ( June 30, 2015: Rs. 2.5 million) held with Faysal Bank Limited (arelated party).

This carried mark-up 7.40% per annum and matured.

-------------- (Rupees) --------------

Further, following new standards have been issued by IASB which are yet to be notified by the SECP for thepurpose of applicability in Pakistan.


Faysal Asset Management Faysal Money Market Fund 31StandardsIFRS 1 - First time adoption of International Financial Reporting StandardsIFRS 9 – Financial Instruments: Classification and MeasurementIFRS 14 – Regulatory Deferral AccountsIFRS 15 – Revenue from Contracts with CustomersIFRS 16 – Leases

June 30, June 30,2016 2015



1,111,521,276 924,853,087

7.1


2016 2015Note

8. INVESTMENTS



Held to Maturity


200,000,000 381,960,240 200,000,000 2,438,353,840

-------------- (Rupees) --------------



-------------- (Rupees) --------------




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June 30, June 30,2016 2015



- (391,128)


- - - (391,128)



10,377,903 4,581,834

9.1

9.2

June 30, June 30,2016 2015



- 271,259

10.1

June 30, June 30,2016 2015



11.1

June 30, June 30,2016 2015



798,914 2,272,812

12.1

-------------- (Rupees) --------------



-------------- (Rupees) --------------


-------------- (Rupees) --------------


-------------- (Rupees) --------------


June 30, June 30,2016 2015



- (391,128)


- - - (391,128)



10,377,903 4,581,834

9.1

9.2

June 30, June 30,2016 2015



- 271,259

10.1

June 30, June 30,2016 2015



11.1

June 30, June 30,2016 2015



798,914 2,272,812

12.1

-------------- (Rupees) --------------



-------------- (Rupees) --------------


-------------- (Rupees) --------------


-------------- (Rupees) --------------




12.2

12.3

June 30, June 30,2016 2015

Note13. REMUNERATION PAYABLE TO THE TRUSTEE - CDC

Remuneration to the Trustee 13.1 182,532 246,135 Sales tax on Trustee fee 13.2 25,554 -

208,086 246,135

13.1

13.2

June 30, June 30,2016 2015

Note14. ACCRUED AND OTHER LIABILITIES

SECP annual fee payable 14.1 1,695,612 3,223,224 Accrued liabilities 1,205,202 1,458,816 With holding tax payable - 2,281,562 Provision for Workers' Welfare Fund 14.2 18,100,029 18,100,029 Provision for indirect taxes and duties 14.3 14,159,913 10,852,873

35,160,756 35,916,504

The Government of Sindh has levied Sindh Sales Tax on services at the rate of 14% (June 30, 2015: 15%)on the remuneration of the Management Company through the Sindh Sales Tax on Services Act, 2011.

The SECP has introduced "expense ratio" vide amendments in the NBFC Regulations dated November25, 2015, whereby, the total expense ratio of income scheme shall be capped at 2% of average daily netassets value of the scheme. The regulation further states that for the purpose of expense ratio, expensesincurred in relation to any government levy on funds such as sales tax, federal excise duty, SECP fee, etc.shall be excluded while calculating expense ratio.

-------------- (Rupees) --------------

------------ (Rupees) ------------

The Trustee is entitled to a monthly remuneration for services rendered to the Fund under the provisionsof the Trust Deed as per the tariff specified therein, based on the daily net asset value of the Fund.

The Government of Sindh has levied Sindh Sales Tax on services at the rate of 14% on the remunerationof the Trustee through the Sindh Sales Tax on Services Act, 2011.

June 30, June 30,2016 2015



- (391,128)


- - - (391,128)



10,377,903 4,581,834

9.1

9.2

June 30, June 30,2016 2015



- 271,259

10.1

June 30, June 30,2016 2015



11.1

June 30, June 30,2016 2015



798,914 2,272,812

12.1

-------------- (Rupees) --------------



-------------- (Rupees) --------------


-------------- (Rupees) --------------


-------------- (Rupees) --------------




14.1

14.2

14.3

In August 2011, the Honorable Lahore High Court (LHC), in a Constitutional Petition relating to theamendments brought in the WWF Ordinance, 1971 through the Finance Act, 2006, and the Finance Act,2008, has declared the said amendments as unlawful and unconstitutional and struck them down. InMarch 2013, a larger bench of the SHC has passed an order declaring that the amendments introduced inthe WWF Ordinance through Finance Acts, 2006 and 2008 respectively do not suffer from anyconstitutional or legal infirmity. However, as mentioned above, the constitutional petition challenging theapplicability of WWF on mutual funds is still pending adjudication and not yet decided. The ManagementCompany has considered the implications of the above judgment of SHC and is of the view that the matterwill eventually be settled in its favor and WWF will not be levied on the Fund.

Further, in May 2014, the High Court (PHC) held that the impugned levy of contribution introduced in theOrdinance through Finance Acts, 1996 and 2009 lacks the essential mandate to be introduced and passedthrough a Money Bill under the constitution and, hence, the amendments made through the Finance Actsare declared as 'Ultra Vires.

As the matter relating to the levy of WWF is currently pending in the SHC, the Management Company, asa matter of prudence, has decided to retain the provision for WWF amounting to Rs.18.1 million (June 30,2015: Rs.18.1 million) in these financial statements. Had the provision not been made, the net assetsvalue per unit of the Fund would have been higher by Rs.2.42 per unit (June 30, 2015: Rs. 0.55 per unit).

As per the legal counsel handling the case, the constitutional petition filed by the CIS to challenge theWWF contribution has not been affected by SHC judgment.

The Finance Act, 2015 has excluded Mutual Funds and Collective Investment Schemes from the definitionof 'industrial establishment' subject to WWF under WWF Ordinance, 1971. Accordingly, no provision forWWF is made from July 01, 2015 onwards. However, provision made till June 30, 2015 has not beenreversed as the above lawsuit is pending in the SHC.

As per the requirements of the Finance Act 2013, Federal Excise Duty (FED) at the rate of 16% (June 30,2015: 16%) on the services of the Management Company has been applied effective June 13, 2013. TheManagement Company is of the view that since the remuneration is already subject to provincial sales tax,further levy of FED results in double taxation, which does not appear to be the spirit of the law. The matterhas been collectively taken up by the Management Company jointly with other Asset ManagementCompanies and CDC on behalf of schemes through a constitutional petition filed in the SHC in September2013. The Fund, as a matter of abundant caution, has charged FED and sales tax on service thereon in itsfinancial statements with effect from June 13, 2013. As at June 30, 2016, the Fund has held a provision forFED aggregating to Rs.12.37 million (June 30, 2015: Rs.9.84 million).

The Finance Act, 2008 introduced an amendment to the Workers' Welfare Fund Ordinance, 1971 (WWFOrdinance). As a result of this amendment it is alleged that all Collective Investment Schemes / mutualfunds (CISs) whose income exceeds Rs.0.5 million in a tax year, have been brought within the scope ofthe WWF Ordinance, thus rendering them liable to pay contribution to WWF at the rate of two percent oftheir accounting or taxable income, whichever is higher. In this regard, a constitutional petition has beenfiled by certain CISs through their trustees in the Sindh High Court (SHC) , challenging the applicability ofWWF to the CISs, which is pending adjudication.

This represents annual fee payable to the SECP in accordance with the NBFC Regulations, whereby theFund is required to pay annually an amount equal to 0.075% (June 30, 2015: 0.075%) per annum of thedaily net asset value of the Fund.

June 30, June 30,2016 2015



- (391,128)


- - - (391,128)



10,377,903 4,581,834

9.1

9.2

June 30, June 30,2016 2015



- 271,259

10.1

June 30, June 30,2016 2015



11.1

June 30, June 30,2016 2015



798,914 2,272,812

12.1

-------------- (Rupees) --------------



-------------- (Rupees) --------------


-------------- (Rupees) --------------


-------------- (Rupees) --------------




15. PAYABLE AGAINST REDEMPTION OF UNITSJune 30, June 30,

2016 2015

Payable to Faysal Bank Limited 15.1 188,000,000 - Payable to others 15.2 495,211,753 -

683,211,753 -

15.1 This represents payable against redemption of 1,859,177 units to Faysal Bank Limited (a related party).

15.2

16. CONTINGENCIES AND COMMITMENTS

June 30, June 30,2016 2015

17. AUDITORS' REMUNERATION

Audit fee 231,000 231,000 Review and other certifications 189,000 189,000 Others 46,248 37,099

466,248 457,099 Sales tax 23,312 21,000

489,560 478,099

There were no contingencies and commitments as at June 30, 2016 and June 30, 2015 except asdisclosed in relevant notes to the financial statements.

Further, as per the Finance Act, 2016, the management fees charged by the asset management companyhave been declared exempt from the levy of FED with effect from July 01, 2016. Accordingly, no provisionfor FED is made from July 01, 2016 onwards.

------------ (Rupees) ------------

------------ (Rupees) ------------

The Sindh High Court in its decision dated July 16, 2016 maintained the previous order passed againstother constitutional petition whereby levy of FED is declared to be ‘Ultra Vires’ the Constitution. Themanagement is however of the view that since the Federal governement still has the right to appealagainst the order, the provision held for FED shall not be reversed.

This includes an amount of Rs. 357 million payable to Faysal Saving Growth Fund, Rs 0.94 to FaysalBalance Growth Fund and Rs 80 milion to Faysal Islamic Saving Growth Fund account of conversion /switching of units on the request of invetors. The amount has been subsequently paid.



18. TAXATION - -

19. TRANSACTIONS WITH CONNECTED PERSONS AND RELATED PARTIES

19.1

19.2 The transactions with connected persons are in the normal course of business at contracted rates.

19.3

June 30, June 30,2016 2015

Transactions during the year

Faysal Asset Management Limited (Management Company)Remuneration of Management Company 18,089,643 34,381,237 Sales tax on management fee 2,532,550 5,157,185 Redemption of Nil units (2015: 3,653 units) - 396,989

Faysal Asset Management Limited - Staff Gratuity FundRedemption of Nil units (2015: 4,060 units) - 422,088

Faysal Asset Management Limited - Staff Provident FundRedemption of Nil units (2015: 9,280 units) - 1,010,486

Faysal Bank Limited (Group company / Associated Company)Issue of Nil units (2015: 1,979,414 units) - 200,000,000 Redemption of 2,850,177 units (2015: 405,490 units) 270,000,000 42,677,823 Return on PLS savings accounts 191,637 244,586 Cash dividend paid 18,487,565 51,750,438 Bank charges 12,202 4,462

Suraj Cotton Mill LimitedIssue of 1,912,669 units (2015: 3,463,975 units) 202,800,344 350,000,000 Redemption of 5,376,643 units (2015: 405,490 units) 510,698,651 -

The income of the fund is exempt from income tax under Clause (99) of Part 1 of the Second Schedule to theIncome Tax Ordinance, 2001 (Clause 99) subject to the condition that not less than 90 percent of the accountingincome for the year, as reduced by capital gains, whether realized or unrealized, is distributed amongst the unitholders. The Management Company has intends to distribute not less than 90 percent of its annual accountingincome to avail the tax exemption. Accordingly, no provision for current and deferred tax has been made in thesefinancial statements.

Connected persons and related parties include Faysal Asset Management Limited being the ManagementCompany, Central Depository Company of Pakistan Limited being the Trustee, other collective investmentschemes managed by the Management Company, Faysal Asset Management Limited - Staff ProvidentFund, Faysal Asset Management Limited - Staff Gratuity Fund, Faysal Bank Limited, Faysal Bank Limited - Staff Provident Fund, Faysal Bank Limited - Staff Gratuity Fund and other entities under commonmanagement and / or directorship and the directors and officers of the Management Company and theTrustee.

The details of transactions carried out by the Fund with connected persons and related parties andbalances with them at year end are as follows:

------------ (Rupees) ------------



June 30, June 30,2016 2015

Connected Persons-Units holders having 10% or more units

Fauji Oil Terminal & Distributor Co. LtdIssue of 1,250,362 units (2015: Nil units) 127,417,999 -

K&N'S Foods (Pvt) LtdIssue of 1,069,658 units (2015: Nil units) 108,120,982 - Cash dividend paid 5,849,533

Directors and Key Management Personnel of the Management Company and their close relatives

Issue of 16,889 units (2015: 9,011 units) 594,208 955,000 Bonus issue of Nil units (2015: 121 units) - 12,223 Reinvestment of dividend 190 units (2015: 1,186 units) 19,220 119,656 Redemption of 17,001 units (2015: Nil units) 594,208 -

Central Depository Company of Pakistan Limited -(Trustee of the Fund)Remuneration of the Trustee 2,445,267 3,972,369 Sales tax on remuneration of the Trustee 342,417 - CDC charges 12,100 4,500

Outstanding balances

Faysal Asset Management Limited (Management Company)Remuneration payable to the management Company 700,802 1,976,357 Sales tax on management fee payable 98,112 296,455

Faysal Bank Limited (Group company / Associated Company)Balance in PLS saving accounts 2,351,983 2,522,535 Units in issue 991,000 units (2015: 7,409,022 units) 100,190,100 748,751,773 Return receivable on PLS savings accounts 20,786 14,294 Payable against redemption of units 188,000,000 -

Faysal Saving Growth FundReceivable against sale of units 154,810,702 - Payable against redemption of units 357,067,042 -

Faysal Balance Growth FundPayable against redemption of units 937,602 -

Faysal Islamic Saving Growth FundPayable against redemption of units 80,000,000 -

------------ (Rupees) ------------



June 30, June 30,2016 2015

Connected Persons-Units holders having 10% or more units

Fauji Oil Terminal & Distributor Company Limited Units in issue 1,250,362 units (2015: Nil units) 126,411,645 -

K&N'S Foods (Pvt) Limited Units in issue 1,069,658 units (2015: Nil units) 108,142,375 -

*Sunrays Textile Mills LimitedUnits in issue Nil (2015: 2,117,805) - 213,982,975

*Suraj Cotton Mills LimitedUnits in issue Nil (2015: 3,463,975) - 350,000,000

Directors and Key Management Personnel of the Management Company and their close relatives

Units in issue 3,937 units (2015: 20,938 units) 398,031 2,115,991

Central Depository Company of Pakistan Limited -(Trustee of the Fund)Remuneration payable to the Trustee 182,532 246,135 Sales tax on Trustee fee 25,554 - Security deposit 100,000 100,000

20. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

------------ (Rupees) ------------

The Fund’s objective in managing risk is the creation and protection of unit holders’ value. Risk is inherent in theFund’s activities, but it is managed through monitoring and controlling activities which are primarily set up to beperformed based on limits established by the Management Company, Fund's constitutive documents and theregulations and directives of the SECP. These limits reflect the business strategy and market environment of theFund as well as the level of the risk that Fund is willing to accept. The Board of Directors of the ManagementCompany supervises the overall risk management approach within the Fund (also refer Annexure I to thesefinancial statements which describes the risk management structure of the Fund). The Fund is exposed tomarket risk, liquidity risk and credit risk arising from the financial instruments it holds.



20.1 Market risk

(i) Interest rate risk

(ii) Foreign currency risk

(iii) Equity price risk

Management of the Fund estimates that an increase of 100 basis points in the floating profitrate, with all other factors remaining constant, would increase the Fund's income andincrease the net assets of the Fund by Rs. 12.54 million (June 30, 2015: Rs. 20.56 million)and a decrease of 100 basis points would result in a decrease the Fund's income anddecrease the net assets of the Fund by the same amount. However, in practice, the actualresults may differ from the sensitivity analysis.

Foreign currency risk is the risk that the fair value or future cash flows of a financialinstrument will fluctuate because of changes in foreign exchange rates. The Fund does nothave any financial instruments in foreign currencies and hence is not exposed to such risk.

Equity price risk is the risk of volatility in share prices resulting from their dependence onmarket sentiments, speculative activities, supply and demand for shares and liquidity in themarket. The equity price risk exposure arises from the Fund's investment in equity securities.The Fund does not have any equity instrument and it is not exposed to such risk.

Management of the Fund estimates that an increase of 100 basis points in the fixed interestrate, with all other factors remaining constant, would decrease the Fund's income anddecrease in the net assets of the Fund by Rs. 2 million (2015: Rs. 13.07 million) and adecrease of 100 basis points would result in a increase the Fund's income and increase thenet assets of the Fund by the same amount. However, in practice, the actual results maydiffer from the sensitivity analysis.

Interest/profit rate risk is the risk that the fair value or future cash flows of a financialinstrument will fluctuate because of changes in market profit rates. As of June 30, 2016, theFund's exposure to the risk of changes in market profit rates relates primarily to bankbalances and clean placements. The bank balances and clean placements are subject toprofit rates as declared by the respective banks/institutions on periodic basis. Thegovernment securities are subject to fixed interest rates and are valued by reference to thequotation obtained from Reuters. As at June 30, 2016, approximately 88.92% (June 30,2015: 99.87%) of the Fund's financial assets are subject to interest rates.

Market risk is the risk that the fair value or future cash flows of financial instruments will fluctuate due tochanges in market variables such as equity prices, interest rates and foreign exchange rates.



20.2 Liquidity risk

Upto one month

More than one

month and upto

More than three

months and upto one year

More than one year

Financial liabilities

Payable to the Management Company 700,802 - - - 700,802 Remuneration payable to the Trustee 208,074 - - - 208,074 Accrued and other liabilities 1,205,202 - - - 1,205,202 Payable against redemption of units 683,211,753 - - - 683,211,753

685,325,831 - - - 685,325,831

Upto one month

More than one

month and upto three

months

More than three

months and upto one year

More than one year

Financial liabilitiesPayable to the Management Company 1,976,357 - - - 1,976,357 Remuneration payable to the Trustee 246,135 - - - 246,135 Accrued and other liabilities 1,138,818 319,998 - - 1,458,816

3,361,310 319,998 - - 3,681,308

20.3 Credit risk

The table below summarises the maturity profile of the Fund's financial liabilities based on contractualundiscounted payments.

June 30,2016 Total

------------------------------------ (Rupees) ------------------------------------

June 30,2015

Liquidity risk is defined as the risk that the Fund will encounter difficulty in meeting obligations associatedwith financial liabilities. Liquidity risk arises because of the possibility that the Fund could be required topay its liabilities earlier than expected. The Fund is exposed to cash redemptions of its redeemable unitson a regular basis. Units are redeemable at the unit holders’ option based on the Fund’s net asset valueper unit at the time of redemption calculated in accordance with the Fund’s constitutive documents.

Credit risk is the risk that the counterparty to a financial instrument will cause a financial loss for the Fundby failing to discharge its obligation. The Fund’s policy is to enter into financial contracts with reputablecounter parties in accordance with the internal guidelines, offering document and regulatory requirements.The table below analyses the Fund's maximum exposure to credit risk. The maximum exposure is showngross, before the effect of mitigation through the use of collateral agreements at reporting date:

Total

------------------------------------ (Rupees) ------------------------------------



June 30, June 30,2016 2015

Bank balances and term deposit receipts 1,111,521,276 924,853,087 Return receivable on bank balances and term deposits receipts 8,730,010 4,394,820 Clean placements 200,000,000 101,738,630 Certificate of Investment - 280,221,610 Receivable against sale of units 154,810,702 - Markup receivable on Clean Placements 1,264,227

1,476,326,215 1,311,208,147

All deposits with the banks are highly rated and risk of default is considered minimal.

Concentration of credit risk exists when changes in economic or industry factors affect the group ofcounterparties whose aggregate credit exposure is significant in relation to the Fund’s total creditexposure. The Fund’s portfolio of financial assets is broadly diversified and transactions are entered intowith diverse credit worthy counterparties thereby mitigating any significant concentration of credit risk. Thetable below analyses the credit quality of the Fund's exposure:

-------------- (Rupees) --------------

June 30, June 30,2016 2015

Rating category

AA+, AA, AA- 89.51 99.99 Unrated 10.49 0.01

100.00 100.00

June 30, June 30,2016 2015


100.00 100.00


---------------- (%) ----------------









June 30, June 30,2016 2015

Rating category

AA+, AA, AA- 89.51 99.99 Unrated 10.49 0.01

100.00 100.00

June 30, June 30,2016 2015


100.00 100.00


---------------- (%) ----------------







21. FAIR VALUE OF FINANCIAL INSTRUMENTS

Level 1: quoted prices in active markets for identical assets.

Level 2:

Level 3:

As at June 30, 2016, the following financial instruments are categorised under the levels as follows:

IFRS 13 - Fair Value Measurement establishes a single source of guidance under IFRS for all fair valuemeasurements and disclosures about fair value measurement where such measurements are required aspermitted by other IFRSs. It defines fair value as the price that would be received to sell an asset or paid totransfer a liability in an orderly transaction between market participants at the measurement date (i.e. anexit price). Adoption of IFRS 13 has not affected the financial statements except for the disclosure.

Financial assets which are tradable in an open market are revalued at the market prices prevailing on the reporting date. The estimated fair value of all other financial assets and financial liabilities is considered not significantly different from book value.

those involving inputs other than quoted prices included in Level 1 that areobservable for the asset or liability, either directly (as prices) or indirectly (derivedfrom prices); andthose with inputs for the asset or liability that are not based on observable marketdata (unobservable inputs).

The following table shows financial instruments recognized at fair value, analyzed between those whose fair value is based on:



381,

960,

240

4,58

1,83

4

92

4,85

3,08

7

3,

367,

788,

761

-

-

2,

056,

393,

600

Leve

l 1Le

vel 2

Leve

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tal

Fina

ncia

l ass

ets

not m

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red

at fa

ir va

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Cle

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men

t

201

,264

,223

-

-

201,

264,

223

-

-

-

-

B

ank

bala

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and

term

dep

osit

rece

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-

-

1,11

1,52

1,27

6

1,11

1,52

1,27

6

-

-

-

-

Dep

osits

and

oth

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ceiv

able

s

-

165,

188,

605

-

16

5,18

8,60

5

-

-

-

-

201,

264,

223

165,

188,

605

1,

111,

521,

276

1,

477,

974,

104

-

-

-

-

Leve

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Leve

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Fina

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mea

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fair

valu

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At fa

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thro

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prof

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loss

- he

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Gov

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- Mar

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2,05

6,39

3,60

0

-

-

2,

056,

393,

600

-

2,

056,

393,

600

2,05

6,39

3,60

0

-

2,

056,

393,

600

Fina

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l ass

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not m

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at fa

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Cle

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t10

1,73

8,63

0

-

-

101,

738,

630

-

-

-

-

C

ertif

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es o

f inv

estm

ent

280,

221,

610

280,

221,

610

-

-

-

-

B

ank

bala

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and

term

dep

osit

rece

ipts

-

-

92

4,85

3,08

7

92

4,85

3,08

7

-

-

-

-

Dep

osits

and

oth

er re

ceiv

able

s-

4,

581,

834

-

4,58

1,83

4

-

-

-

-

------

------

------

------

-----

(Rup

ees)

-----

------

------

------

------

------

------

------

------

-----

(Rup

ees)

-----

------

------

------

------

June

30,

201

5C

arry

ing

amou

ntFa

ir va

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Inve

stm

ents

Dep

osits

and

ot

her

rece

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Cas

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sh

equi

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22. SUPPLEMENTARY NON FINANCIAL INFORMATION

23. GENERAL

Figures are rounded off to the nearest Rupee.

24. DATE OF AUTHORISATION FOR ISSUE

_____________________ _____________ ______________Chief Executive Officer Director Director

The information regarding pattern of unit holdings', top brokers, members of the Investment Committee, performancetable, fund manager, meetings of the Board of Directors of the Management Company and rating of the Fund and theManagement Company has been disclosed in Annexure I to the financial statements.

These financial statement were authorised for issue on September 26, 2016 by the Board of Directors of theManagement Company.


SUPPLEMENTARY NON FINANCIAL INFORMATIONDISCLOSURE REQUIREMENTS UNDER CLAUSE 6 - NOTES TO THE ACCOUNTS

SUB CLAUSE (D), (F), (G), (H), (I) AND (J) OF THE 5TH SCHEDULE TO THENON BANKING FINANCE COMPANIES AND NOTIFIED ENTITIES REGULATIONS, 2008

Annexure I


(i) PATTERN OF UNIT HOLDING

No. of investors Units held %

000,1991 ynapmoc detaicossA 13.23-0ynapmoc ecnarusnI 0.00

842,2549sdnuF tnemeriteR 6.04435,020,1642slaudividnI 13.62

---sIFD dna sknaB---sCFBN

844,720,541rehtO 67.11270 7,491,230 100.00

(ii) TOP TEN BROKERS BY PERCENTAGE OF COMMISSION PAIDJune 30, 2016

%Invest Capital Market Limited 37.90%BMA CAPITAL 11.53%Invest & Finance Sec 10.26%Next Capital 8.70%Icon Securities 7.99%Arif Habib Securities Limited 7.43%Invest Capital Securities 7.13%Maginta Capital 3.99%C & M Management Ltd. 2.54%Global Securties Pakistan Limited 2.53%

June 30, 2015%

Invest Capital Market Limited 40.70%Invest & Finanace Limited 19.49% Global Securities Pakistan Limited 9.93%Icon Securities (Pvt) Limited 9.04%C & M Management Limited 6.50%Arif Habib Securities Limited 4.41%BMA Capital Limited 2.82%Megenta Capital (Pvt.) Limited 1.90%Next Capital Limited 1.81%Invest Capital Securities (Pvt.) Limited 1.41%

(iii) THE MEMBERS OF THE INVESTMENT COMMITTEE

Following are the members of the Investment Committee of the Fund:

ecneirepxEnoitacifilauQemaNMr. Enam Ullah Khan B. Eco , FSA, Accreditations Over 24 yearsMr. Najm Ul Hassan MBA, ACMA, CFA I Over 21 yearsMr. Vasseh Ahmed Master in Science Over 8 yearsMr. Ayub Khuhro BSC Economics, CFA I Over 8 yearsSyed Shahid Iqbal B. COM Over 26 yearsMr. Hassan Bin Nasir MBA Over 8 yearsMr. Sarwar Khan (Non-Voting) ACCA, CFA II Over 8 years


SUB CLAUSE (D), (F), (G), (H), (I) AND (J) OF THE 5TH SCHEDULE TO THE NON BANKING FINANCE COMPANIES AND NOTIFIED ENTITIES REGULATIONS, 2008

Category

Name

Faysal Money Market Fund



(iv) PARTICULARS OF FUND MANAGERS

deganaM semehcS tnemtsevnI evitcelloC rehtOnoitacifilauQemaNdnuF htworG sgnivaS lasyaFMOC .BlabqI dihahS deyS

Faysal Financial Sector Opportunity Fund

June 30, 2016 June 30, 2015 June 30, 2014

(v) PERFORMANCE TABLE

392,033,757 stessa teN 3,329,624,569 5,191,664,59101.101tinu rep eulav tessa teN 101.06 100.86 01.101ecirp reffO 101.06 100.86 01.101tinu rep ecirp esahcrupeR 101.06 100.86

25.20160.90160.901tinu rep ecirp reffo tsehgiH 25.20160.90160.901tinu rep ecirp esahcruper tsehgiH 38.00188.00188.001ecirp reffo tsewoL 38.00188.00188.001tinu rep ecirp esahcruper tsewoL

%53.8%46.8%76.5:nruter latoT%03.0%12.0%30.0htworg latipac -%50.8%34.8%46.5noitubirtsid emocni -

Average annual return:(Launch date: Decemeber 13, 2010)

%53.8%46.8%76.5raey eno -%95.8%05.8%61.7sraey owt -%62.9%06.8%55.7sraey eerht -

Distribution per unit:%50.8%05.8%07.5)tinu rep %( noitubirtsid miretnI -

-)tinu rep %( noitubirtsid laniF - - - 5.70% 8.50% 8.05%

(vi) Expense ratio from the November 25, 2015 to June 30, 2016

The Fund's past performance is not necessarily indicative of future performance. Therefore, the unit pricesand investment returns may go down, as well as up.

Faysal Money Market Fund (FMMF) has total expense ratio (TER) of 1.34%, the TER inlcudes 0.35% representing government levy and SECP fee.

--------------------- (Rupees) ---------------------


(iv) PARTICULARS OF FUND MANAGERS

deganaM semehcS tnemtsevnI evitcelloC rehtOnoitacifilauQemaNdnuF htworG sgnivaS lasyaFMOC .BlabqI dihahS deyS

Faysal Financial Sector Opportunity Fund

June 30, 2016 June 30, 2015 June 30, 2014

(v) PERFORMANCE TABLE

392,033,757 stessa teN 3,329,624,569 5,191,664,59101.101tinu rep eulav tessa teN 101.06 100.86 01.101ecirp reffO 101.06 100.86 01.101tinu rep ecirp esahcrupeR 101.06 100.86

25.20160.90160.901tinu rep ecirp reffo tsehgiH 25.20160.90160.901tinu rep ecirp esahcruper tsehgiH 38.00188.00188.001ecirp reffo tsewoL 38.00188.00188.001tinu rep ecirp esahcruper tsewoL

%53.8%46.8%76.5:nruter latoT%03.0%12.0%30.0htworg latipac -%50.8%34.8%46.5noitubirtsid emocni -

Average annual return:(Launch date: Decemeber 13, 2010)

%53.8%46.8%76.5raey eno -%95.8%05.8%61.7sraey owt -%62.9%06.8%55.7sraey eerht -

Distribution per unit:%50.8%05.8%07.5)tinu rep %( noitubirtsid miretnI -

-)tinu rep %( noitubirtsid laniF - - - 5.70% 8.50% 8.05%

(vi) Expense ratio from the November 25, 2015 to June 30, 2016

The Fund's past performance is not necessarily indicative of future performance. Therefore, the unit pricesand investment returns may go down, as well as up.

Faysal Money Market Fund (FMMF) has total expense ratio (TER) of 1.34%, the TER inlcudes 0.35% representing government levy and SECP fee.

--------------------- (Rupees) ---------------------



Annexure II

(vi) MEETINGS OF THE BOARD OF DIRECTORS

Meetings Sep 23 Oct 06 Oct 28 Feb 29 March 18 March 31 April 22 June 27Attended 2015 2015 2015 2016 2016 2016 2016 2016

111101117namriahC ,irasnA namuaN .rM

Mr. Osman Khan, Director 6 1 1 1 0 1 1 0 1

Mr. Zahid Ahmed, Director 4 N/A N/A N/A 1 1 1 1 0

Syed Ibad ur Rahman Chishti, Director 8 1 1 1 1 1 1 1 1

Mr. Razi ur Rahman, Director 8 1 1 1 1 1 1 1 1

Mr. Enamullah Khan, Chief Executive Officer 8 1 1 1 1 1 1 1 1

(vii) MEETINGS OF THE AUDIT COMMITTEE

Following is the analysis of the attendance in the meetings of the Audit Committee of the Management Company during the year:

Meetings Oct 06 Oct-27 Oct-28 Feb-26 Apr-22Attended 2015 2015 2015 2016 2016

Mr. Razi ur Rehman, Chairman 5 1 1 1 1 1

Mr. Osman Khan, Director 4 1 1 1 1 0

Syed Ibad ur Rahman Chishti, Director 5 1 1 1 1 1

(viii) MEETINGS OF THE BOARD HR COMMITTEE

Following is the analysis of the attendance in the meetings of the Board HR Committee of the Management Company during the year:

Meetings Oct 13 Oct 28 Dec 30 March 04Attended 2015 2015 2015 2016

Mr. Osman Khan, Chairman 4 1 1 1 1

11114rotceriD ,nahK namhaR ru izaR .rM

Syed Ibad ur Rahman Chishti, Director 4 1 1 1 1

Mr. Enamullah Khan, Chief Executive Officer 4 1 1 1 1

(ix) RATING OF THE FUND AND THE MANAGEMENT COMPANY

The PACRA Credit Rating Agency Limited has assigned a "AA+(f)" fund rating to Faysal Money Market Fund as of December 31, 2015 and the JCR-VIS Credit Rating Company Limited (JCR-VIS) has awarded an "AM3++" asset manager rating to the Management Company as of May 04, 2016.

Faysal Money Market Fund

Following is the analysis of the attendance in the meetings of the Board of Directors of the Management Company during the year:

Name of DirectorsMeetings held on

Name of MemberMeetings held on

Name of DirectorsMeetings held on



(a)

(b)

(c)


4.16 Zakat payable













(a)

(b)

(c)


4.16 Zakat payable











6.

Standard



Standard









January 01, 2016

January 01, 2018

January 01, 2017

January 01, 2016



Effective date



Not yet finalized



January 01, 2016

January 01, 2016

January 01, 2016

January 01, 2017


January 01, 2016


StandardsIFRS 1 - First time adoption of International Financial Reporting StandardsIFRS 9 – Financial Instruments: Classification and MeasurementIFRS 14 – Regulatory Deferral AccountsIFRS 15 – Revenue from Contracts with CustomersIFRS 16 – Leases

June 30, June 30,2016 2015



1,111,521,276 924,853,087

7.1


2016 2015Note

8. INVESTMENTS



Held to Maturity


200,000,000 381,960,240 200,000,000 2,438,353,840

-------------- (Rupees) --------------



-------------- (Rupees) --------------



June 30, June 30,2016 2015



- (391,128)


- - - (391,128)



10,377,903 4,581,834

9.1

9.2

June 30, June 30,2016 2015



- 271,259

10.1

June 30, June 30,2016 2015



11.1

June 30, June 30,2016 2015



798,914 2,272,812

12.1

-------------- (Rupees) --------------



-------------- (Rupees) --------------


-------------- (Rupees) --------------


-------------- (Rupees) --------------



June 30, June 30,2016 2015



- (391,128)


- - - (391,128)



10,377,903 4,581,834

9.1

9.2

June 30, June 30,2016 2015



- 271,259

10.1

June 30, June 30,2016 2015



11.1

June 30, June 30,2016 2015



798,914 2,272,812

12.1

-------------- (Rupees) --------------



-------------- (Rupees) --------------


-------------- (Rupees) --------------


-------------- (Rupees) --------------


12.2

12.3

June 30, June 30,2016 2015



208,086 246,135

13.1

13.2

June 30, June 30,2016 2015



35,160,756 35,916,504



-------------- (Rupees) --------------

------------ (Rupees) ------------



12.2

12.3

June 30, June 30,2016 2015



208,086 246,135

13.1

13.2

June 30, June 30,2016 2015



35,160,756 35,916,504



-------------- (Rupees) --------------

------------ (Rupees) ------------



financial statements for the year ended ... - faysal asset faysal asset management faysal money...

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