page 1-20 21-40 41-58 · pdf fileprofit after tax 24.06 117.40 80.65 122.84 ... provided...

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Accounts for the Quarter and Nine Monthsended March 31, 2008

FAYSAL ASSET MANAGEMENT LIMITED

Managed by:

COMMITTED TO SETTING NEW STANDARDS IN INVESTMENT MANAGEMENT

1

Quarter and Nine Months ended March 31, 2008

CONTENTS

Fund Information 2

Mission Statement 3

Report of the Directors of the Management Company 4

Statement of Assets and Liabilities 6

Income Statement 7

Distribution Statement 8

Cash Flow Statement 9

Statement of Movement in Unit Holders� Fund 10

Notes to the Financial Statements 11

2


FUND INFORMATION

Management CompanyFaysal Asset Management Limited

Board of Directors of the Management CompanyMr. Khalid Siddiq Tirmizey, ChairmanMr. Salman Haider Sheikh, Chief Executive OfficerMr. Sanaullah Qureshi, DirectorMr. Mohammad Iqbal, DirectorMr. Feroz Rizvi, DirectorMr. Iqbal Alimohamed, Director

CFO of the Management CompanyMr. Muhammad Shakeel Musani

Company Secretary of the Management CompanyMr. M. Siddique Memon

Audit CommitteeMr. Iqbal Alimohamed, ChairmanMr. Mohammad Iqbal, MemberMr. Feroz Rizvi, Member

TrusteeCentral Depository Company of Pakistan LimitedCDC House, 99-B, Block �B�S.M.C.H.S., Main Shahra-e-Faisal,Karachi.

Bankers to the FundFaysal Bank LimitedMCB Bank LimitedBank Alfalah LimitedMetropolitan Bank LimitedAtlas Bank LimitedThe Bank of Punjab LimitedSaudi Pak Commercial Bank Limited

AuditorsFord Rhodes Sidat Hyder & Co., Chartered Accountants

Legal AdvisorMohsin Tayebely & Co.,2nd Floor, Dime Centre,BC-4, Block-9, KDA-5,Clifton, Karachi.

RegistrarsGangjees Registrar Services (Pvt) LimitedRoom # 506, 5th Floor, Clifton Centre,Kehkashan Clifton - Karachi.

DistributorsFaysal Asset Management LimitedFaysal Bank LimitedFlow (Private) LimitedIGI Investment Bank LimitedAtlas Capital Market (Pvt) LimitedPak Oman Investment Bank LimitedAlfalah Securities (Pvt) LimitedJS Global Capital Limited

3


MISSION STATEMENT

FBGF endeavors to provide investors with an

opportunity to earn income and long-term

capital appreciation by investing in a large

pool of funds representing equity / non equity

investments in a broad range of sectors

and financial instruments.

4


REPORT OF THE DIRECTORS OF THE MANAGEMENT COMPANY

The Board of Directors of the Faysal Asset Management Limited, the management company of theFaysal Balanced Growth Fund (FBGF), is pleased to present the un-audited accounts of FBGF for thequarter and nine months ended March 31, 2008.

PERFORMANCE REVIEW

Rupees in million

Total Income 33.36 127.51 107.13 156.30Operating Expenses 9.30 10.11 26.45 33.46

Profit Before Tax 24.06 117.40 80.65 122.84Taxation - - - -

Profit After Tax 24.06 117.40 80.65 122.84

Earnings per Unit � Rs. 2.28 9.94 7.63 10.40

Profit after Tax (PAT) for the quarter amounted to Rs. 24.06 million. PAT for the quarter includes net

realized capital gain of Rs. 11.67 million and dividend income of Rs. 5.86 million. In view of its exposure

in listed rated Term Finance Certificates, the Fund earned 8.34 million during the quarter.

Fund Performance: Alhamdulillah, FBGF posted a return of 6.83% for the nine months as comparedto KSE-100 index return of 9.83%. FBGF had an average asset allocation of 60.24% equity and 39.76%fixed income exposure during the nine months ended March 31st 2008. The fixed income exposureprovided hedging against possible downside exposure from the equity market up to the extent of +2.58%.

Fixed income return + 2.58 %Equity return + 4.25 %

Total return + 6.83 %

The KSE-100 index return at 60.24% remained at 5.92% while the equity portion of FBGF posted +4.25%return. This return of the equity portion of FBGF indicates a performance of 71.8% when compared withsimilar KSE-100 Index equity allocation. Average open-ended balanced equity funds posted a returnof 7.94% during the nine months period. FBGF stood as the third best performing balanced equity fundin a spectrum of six funds.

30-June 2007 31-March 2008 Change

KSE-100 Index 13,772.46 15,125.89 9.83%FBGF NAV (ex-bonus) 103.49 110.56 6.83%

Quarterended

March 2008

Quarterended

March 2007

NineMonthsended

March 2008

NineMonthsended

March 2007

5


Market Review: The equity markets remained volatile during the current quarter. The market startedthe quarter after a decline leading from uncertainty on the political front to the completion of generalelections in the country. This gradual decrease in the political uncertainty led to the increase in volumesat the KSE leading the index to higher levels. The KSE-100 index started the year at 13,772.46 andended the quarter at 15,125.89 marking a gain of 9.83%. The rise in international oil prices above$100/bbl levels led to the rise in the food inflation internationally. Other commodity prices witnessedincrease as well leading to further inflationary pressures. The FDI and FPI indicated declining trendsas compared to the similar quarter of the previous fiscal year. Special Rupee Convertible Account, SCRAdid not show any significant signs of recovery after the recent foreign funds outflow from our equitymarkets.

On the international front Asian markets remained in focus due to the trickle-down impact of the sub-prime credit crisis of the U.S. economy. The weakening dollar and higher oil prices further added tothe problems of Asian markets. The MSCI's measure of Asian stocks outside Japan dropped over 13percent this quarter marking its worst performance since the quarter ended in September 2002. Theselosses have contrasted sharply with the double digit gains in the index in each of the previous five years.The rise in the international commodity prices along with food inflation will remain high in the near futuredue to supply-side constraints. The launch of new funds targeting commodities and the need to hedgehas also led to higher commodity prices. International emerging market managers have reduced theirequity exposure from the Asian markets due to the impact of the slow-down of the U.S. economy andthe impact of the current financial crisis.

The current P/E multiple discounts offered by the Pakistani capital markets when compared to otherregional markets can offer international investors better return in the long run. The EPS growth anddividend yield also present Pakistan as an attractive investment option within the region, which cantranslate into higher foreign investment in our equity markets in the future. The decrease in politicaluncertainty will also provide better investment visibility and enhanced investor confidence.

INVESTMENTSAs of March 31, 2008, the total assets of the Fund were invested as below:

ASSET ALLOCATION (%) SECTOR ALLOCATION (%)

INCOME DISTRIBUTIONThe Board of Directors of the Management Company has approved interim profit distribution at the rateof 1.60% (i.e. Rs 1.60 per unit).

ACKNOWLEDGEMENTThe Board of Directors of the Management Company thanks the unit holders for their confidence in theManagement, the Securities and Exchange Commission of Pakistan for its valuable support, assistanceand guidance. The Board also thanks the employees of the Management Company and the Trusteefor their dedication and hard work.

For and on behalf of the Board

Salman Haider SheikhKarachi: April, 16 2008 Chief Executive Officer

Equities63.01%

Fixed incomeinstruments

20.28%

Bank Deposits15.75% Other Assets

0.96% Inv. Banks / Sec. / Cos.1.98%

Fertilizer5.82%

Transportation2.21%

Textile Composite5.74%

Oil & Gas Exploration

17.34%

Oil & Gas Marketing1.17%

Power Generation1.10%

Refinery1.09%

Technology &Communication

2.61%

Tobacco2.09%

Others2.53%

Cable & Electrical Goods4.28%

Commercial Banks10.82%

Insurance2.38%

6


INTERIM CONDENSED STATEMENT OF ASSETS AND LIABILITIESAS AT MARCH 31, 2008

March 31, June 30,2 0 0 8 2 0 0 7

Note (Un-Audited) (Audited)Rupees Rupees

Assets

Investments 5 972,869,120 875,921,917Bank balances 6 165,596,945 105,769,453Dividend & other receivables 7 34,400,452 117,738,284

Total assets 1,172,866,517 1,099,429,654

Liabilities

Payable to the Management Company 8 2,848,730 2,358,012Remuneration payable to the Trustee 181,146 180,984Accrued and other liabilities 9 1,742,315 20,476,103

Total liabilities 4,772,191 23,015,099

Net assets 1,168,094,326 1,076,414,555

Unit holders' fund 1,168,094,326 1,076,414,555

------- Number of Units --------

Number of Units in issue 10,565,331 8,860,217

------------ Rupees -------------

Net assets value per unit 110.56 121.49

The annexed notes from 1 to 16 form an integral part of these interim condensed financial statements.

For Faysal Asset Management Limited(Management Company)

Salman Haider SheikhChief Executive Officer

Mohammad IqbalDirector

Feroz RizviDirector

7


INTERIM CONDENSED INCOME STATEMENT (UN - AUDITED)FOR THE QUARTER AND NINE MONTHS ENDED MARCH 31, 2008

Nine Months ended March 31, Quarter ended March 31,

2008 2007 2008 2007

Note ----------------------------------- Rupees -----------------------------------Income

Net capital gain on sale of investments at fair value through profit or loss 61,952,143 137,510,000 11,669,775 66,412,515Profit earned on Debt Securities 28,712,487 36,969,429 8,341,741 11,922,177Dividend income 25,040,257 38,027,168 5,864,525 7,467,500Return on Bank balances 8,874,843 13,104,663 3,590,996 5,345,210Other income 1,405 - - -Element of income/ (loss) and capital gains/(losses) included in prices of units sold lessthose in units redeemed 3,818,802 (27,479,684) 3,893,393 (23,135,743)

128,399,937 198,131,576 33,360,430 68,011,659

Unrealised gain / (loss) on investments at fair value through profit or loss (21,271,438) (41,826,711) 4,468 59,500,489

Total Income 107,128,499 156,304,865 33,364,898 127,512,148

Expenses

Remuneration of the Management Company 8.1 19,491,819 26,045,794 6,899,064 7,655,407Remuneration of the Trustee 1,589,666 1,908,277 525,878 586,815Brokerage charges 3,457,131 3,473,615 1,174,538 1,172,327Bank charges 29,640 3,228 6,863 753Auditors' remuneration 318,459 228,747 74,795 73,973SECP annual fee 836,241 1,157,592 276,563 340,240Legal and professional charges 215,000 139,000 185,000 116,000Fees and subscription 35,000 35,000 - -Settlement charges and capital value tax 503,233 470,663 158,885 167,420

Total Expenses 26,476,189 33,461,916 9,301,586 10,112,935

Net income for the period before taxation 80,652,310 122,842,949 24,063,312 117,399,213

Taxation 10 - - - -

Net income for the period after taxation 80,652,310 122,842,949 24,063,312 117,399,213

Earnings per unit at the close of the period 11 7.63 10.40 2.28 9.94





Feroz RizviDirector

8





INTERIM CONDENSED DISTRIBUTION STATEMENT (UN-AUDITED)FOR THE QUARTER AND NINE MONTHS ENDED MARCH 31, 2008


2008 2007 2008 2007 ------------------------------------ Rupees -----------------------------------

Undistributed income brought forward 190,392,775 95,513,167 87,497,862 9,399,280

Final distribution @18% (2007: @6%) declared for distribution on July 7, 2007 (2007: July 15, 2006) (159,483,911) (91,557,623) - -

Net income after taxation for the period 80,652,310 122,842,949 24,063,312 117,399,213

Undistributed income carried forward 111,561,174 126,798,493 111,561,174 126,798,493


Feroz RizviDirector

9


INTERIM CONDENSED CASH FLOW STATEMENT (UN-AUDITED)FOR THE QUARTER AND NINE MONTHS ENDED MARCH 31, 2008


2008 2007 2008 2007Note -------------------------------------- Rupees -----------------------------------

CASH FLOWS FROM OPERATING ACTIVITIES

Net income for the period before taxation 80,652,310 122,842,949 24,063,312 117,399,213

Adjustments for non-cash and other itemsNet capital gain on sale of investments at fair value through profit or loss (61,952,143) (137,510,000) (11,094,100) (66,412,515)Profit earned on Debt Securities (28,712,487) (36,969,429) (8,341,741) (11,922,177)Dividend income (25,040,257) (38,027,168) (5,864,525) (7,467,500)Return on Bank balances (8,874,843) (13,104,663) (3,590,996) (5,345,210)Element of (income) / loss and capital (gains) / losses included in prices of units sold less those in units redeemed (3,818,802) 27,479,684 (3,893,393) 23,135,743Unrealised (gain) / loss on investments at fair value through profit or loss 21,271,438 41,826,711 (580,142) (59,500,489)

(26,474,784) (33,461,916) (9,301,585) (10,112,935)(Increase)/decrease in Assets Other receivables (excluding advance taxation) (2,500,000) (996,223) - (1,002,227)

Increase/(decrease) in Liabilities Payable to the Management Company 490,718 (977,236) 548,298 (408,501)Remuneration payable to the Trustee 162 (19,270) (1,512) (18,156)Accrued and other liabilities (324,515) (858,439) 754,001 190,758

166,365 (1,854,945) 1,300,787 (235,899)

(28,808,419) (36,313,084) (8,000,798) (11,351,061)

Proceeds from sale/redemptions of investments 2,175,321,117 2,400,198,492 623,816,345 995,817,349Payments against purchase of investments (2,165,471,709) (1,879,830,649) (661,084,089) (653,405,879)Profit received on Debt Securities 30,514,263 36,820,548 9,256,077 11,689,009Return received on Bank balances 10,428,759 11,757,345 2,866,974 4,625,914Dividend received 22,997,218 47,826,543 4,713,678 5,887,375

73,789,648 616,772,279 (20,431,015) 364,613,768

Net cash from / (used in) operating activities 44,981,229 580,459,195 (28,431,813) 353,262,707

CASH FLOWS FROM FINANCING ACTIVITIES

Amount received on issue of units 360,002,775 247,957,822 116,056,139 117,726,574Payment made against redemption of units (345,156,512) (711,578,740) (85,072,060) (426,025,222)

Net cash from / (used in) financing activates 14,846,263 (463,620,918) 30,984,079 (308,298,648)

Net increase in cash and cash equivalents during the period 59,827,492 116,838,277 2,552,266 44,964,059Cash and cash equivalents at the beginning of the period 105,769,453 27,676,508 163,044,679 99,550,726Cash and cash equivalents at the end of the period 12 165,596,945 144,514,785 165,596,945 144,514,785





Feroz RizviDirector

10


INTERIM CONDENSED STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUND (UN-AUDITED)FOR THE QUARTER AND NINE MONTHS ENDED MARCH 31, 2008


2008 2007 2008 2007

----------------------------------- Rupees --------------------------------

Net assets at the beginning of the period 1,076,414,555 1,621,473,600 1,116,940,328 1,475,939,007

Amount received on issue of units * 360,002,775 247,957,822 116,056,139 117,726,574

Amount paid on redemption of units ** (345,156,512) (711,578,740) (85,072,060) (426,025,222)

14,846,263 (463,620,918) 30,984,079 (308,298,648)

Element of (income) / loss and capital (gains) / losses included in prices of units sold less those in units redeemed (3,818,802) 27,479,684 (3,893,393) 23,135,743

Net income for the period after taxation 80,652,310 122,842,949 24,063,312 117,399,213

Net assets at the end of the period 1,168,094,326 1,308,175,315 1,168,094,326 1,308,175,315

-------------------------- Number of units ---------------------------

* Number of units issued (including 1,541,056 bonus units issued during the Nine Months ended March 31, 2008 and 913,202 bonus units issued during Nine Months ended March 31, 2007) 4,884,591 3,261,708 2,348,438 1,066,801

** Number of units redeemed 3,179,478 6,706,169 2,564,773 3,917,055





Feroz RizviDirector

11


NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (UN-AUDITED)FOR THE QUARTER AND NINE MONTHS ENDED MARCH 31, 2008

1. LEGAL STATUS AND NATURE OF BUSINESS

Faysal Balanced Growth Fund (the Fund) was established under the Non-Banking FinanceCompanies (Establishment and Regulation) Rules, 2003 (the NBFC Rules) and has been authorizedas a unit trust scheme by the Securities and Exchange Commission of Pakistan (SECP) on February18, 2004. It has been constituted under a Trust Deed, dated January 29, 2004, between FaysalAsset Management Limited, a company incorporated under the Companies Ordinance, 1984 andMuslim Commercial Financial Services (Private) Limited (MCFSL) as the Trustee, till June 04,2005 and thereafter between Faysal Asset Management Limited and Central Depository Companyof Pakistan Limited (CDC) as the Trustee.

The Fund is an open ended mutual 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 unitsare listed on the Karachi Stock Exchange (Guarantee) Limited. The Fund was launched on April19, 2004.

The principal activity of the Fund is to make investments in equity market and fixed income securitiesincluding money market instruments.

2. STATEMENT OF COMPLIANCE

These interim condensed financial statements have been prepared in accordance with therequirements of the NBFC Rules and the Non-Banking Finance Companies and Notified EntitiesRegulations, 2007 (the NBFC Regulations) as notified through SRO 1132 (I)/2007 dated November21, 2007 by Securities and Exchange Commission of Pakistan (SECP), the requirements of theCompanies Ordinance, 1984, directives issued by the SECP and the approved InternationalFinancial Reporting Standards (IFRS) as applicable in Pakistan. Approved IFRS comprise of suchInternational Accounting Standards (IAS) and IFRS as are notified under the provisions of theCompanies Ordinance, 1984. Wherever, the requirements of the NBFC Rules, the NBFC Regulations,the Companies Ordinance, 1984 or directives issued by the SECP differ with the requirements ofthese standards, the requirements of the NBFC Rules, the NBFC Regulations, the CompaniesOrdinance, 1984 and the said directives take precedence. The disclosures made in these interimcondensed financial statements have, however, been limited based on the requirements of theInternational Accounting Standard-34: "Interim Financial Reporting". They do not include all theinformation and disclosures required in the annual financial statements, and should be read inconjunction with the financial statements of the Fund for the year ended June 30, 2007.

The disclosures required by Schedule IV of the NBFC Regulations (Disclosure Requirements forCollective Investment Schemes) have not been made in these interim condensed financial statementsas the Management Company is of the view that the same are applicable to the annual financialstatements in view of a clarification received in this regard from the SECP, through Mutual FundsAssociation of Pakistan (MUFAP).

3. BASIS OF MEASUREMENT

These interim condensed financial statements have been prepared under the historical costconvention, except for investments classified 'at fair value through profit or loss' and 'available forsale' which are carried at fair value.

The interim condensed financial statements are presented in Pak Rupees, which is the Fund'sfunctional and presentation currency.

4. SIGNIFICANT ACCOUNTING POLICIES

The accounting policies adopted in preparation of these interim condensed financial statementsare the same as those applied in the preparation of the annual published financial statements ofthe Fund for the year ended June 30, 2007.

12


March 31, June 30,2 0 0 8 2 0 0 7

Note (Un - Audited) (Audited)Rupees Rupees

5. INVESTMENTS

At fair value through profit or loss

Listed equity securities 5.1 735,962,860 492,326,450Listed debt securities 5.2 236,906,260 383,595,467

972,869,120 875,921,917

13


Number of sharesMarket value

As at Purchased Bonus/right Disposed As at as at % of Name of the investee company July 01, during the shares received during the March March 31, net

2007 period during the period period 31, 2008 2008 assets(Rupees)

14


* Preference shares having a face value of Rs. 10/- each unless stated otherwise.

Cable & Electric GoodsPak Electron Limited 5,000,000 - - - 5,000,000 50,000,000 4.28%

Textile CompositeAzard Nine Limited 1,000 - - (1,000) - - -

5,001,000 - - (1,000) 5,000,000 50,000,000 4.28%

12,159,494 27,507,500 1,046,765 (19,474,813) 21,238,946 735,962,860 61.92%

5.2 Listed Debt Securities

Market valueAs at Purchased Disposed As at as at % of

Name of the investee company July 01, during the during the March 31, March 31, net2007 period period 2008 2008 assets

(Rupees)

Commercial BanksUnited Bank Limited (1st issue) 25,000 - 19,000 6,000 27,260,340 2.33%United Bank Limited (2nd issue) 5,000 - 5,000 - - -

Investment CompaniesJahangir Siddiqui & Company Limited 7,650 - - 7,650 37,245,172 3.19%

Oil & Gas Exploration CompaniesChanda Oil & Gas Securitization Company Limited 20,000 - - 20,000 70,349,000 6.02%Naimat Basal Oil & Gas Securitization Company Limited 15,000 - - 15,000 34,390,050 2.94%

Leasing CompaniesTrust Leasing Company Limited 4,500 - - 4,500 6,732,450 0.58%

Technology and CommunicationTele Card Limited 20,010 - - 20,010 60,929,248 5.22%

97,160 - 24,000 73,160 236,906,260 20.28%

5.3 Significant terms and conditions of Debt Securities are as follows:

Name of Security Number of Face Mark-up Maturity Secured/ Rating Certificates Value rate(per Unsecured

(Rs.) annum)

United Bank Limited (1st issue) 6,000 5,000 8.45% Aug, 2012 Unsecured AA

Trust Leasing Compay Limited 4,500 5,000 3%+6 Jul, 2009 Secured AAmonths KIBOR

Jahangir Siddiqui & Company Limited 7,650 5,000 8.29% Dec, 2009 Secured AA+

Chanda Oil & Gas Securitization 20,000 5,000 3.25%+3 Feb, 2012 Unsecured A+ Company Limited months KIBOR

Naimat Basal Oil & Gas Securitization 15,000 5,000 2.5% +6 Feb, 2012 Unsecured A+ Company Limited months KIBOR

Tele Card Limited 20,010 5,000 3.75% + 6 May, 2011 Secured BBBmonths KIBOR

Number of certificates

Number of sharesMarket value

As at Purchased Bonus/right Disposed As at as at % of Name of the investee company July 01, during the shares received during the March March 31, net

2007 period during the period period 31, 2008 2008 assets(Rupees)

15


5.4 Cost of investments at fair value through profit or loss as at March 31, 2008amounted to Rs.990,595,657 (June 30, 2007: Rs.877,719,440).

5.5 Effective February 12, 2008, the Fund has changed the basis of valuation ofdebt securities, both listed and unlisted, from Discounted Cash Flow Methodas allowed by IAS-39 'Financial Instrument and Measurement' to the ratesnotified by the Mutual Funds Associtaion of Pakistan (MUFAP) as required byNon Banking Finance Companies and Notified Enities Regulations, 2007.However, in case there are no rates notified by the MUFAP the debt security(ies)is(are) to be valued at Discounted Cash Flow Method as allowed by IAS-39.The said change results in more accurate valuation of debt securities andcompliance of the NBFC and Notified Entities Regulations, 2007. This changehas been accounted for as change in accounting estimate and the effect of theabove has been accounted for prospectively. Had the listed debt securitiesbeen valued at Discounted Cash Flow Method as allowed by IAS-39, thecarrying value of investment and the net income for the period would havebeen higher by Rs.7.423 million.

March 31, June 30, 2008 2007

(Un - Audited) (Audited)Note Rupees Rupees

6. BANK BALANCES

Cash at Bank - Current Account - 8,953

Cash at Bank - PLS Savings Accounts 6.1 165,596,945 105,760,500

165,596,945 105,769,453

6.1 These carry mark-up ranging from 3% to 11% (June 30, 2007:2.25% to 12.10% ) per annum. Themark-up rate on certain bank accounts is subject to maintenance of agreed minimum bank balancefor a specific period.

7. DIVIDEND AND OTHER RECEIVABLES - considered good

Dividend receivable 3,037,615 994,576Receivable against sale of investments at fair value through profit or loss 18,507,550 95,906,115Unrealized gain - letter of rights - 7,126,614Security Deposits 3,607,500 1,107,500Profit receivable on Debt Securities 6,196,653 7,998,429Return receivable on Bank balances 1,314,724 2,868,640Advance tax 7.1 1,736,410 1,736,410

34,400,452 117,738,284

16


7.1 This mainly represents tax withheld till September 30, 2004 under the Section 233 (A) of theIncome Tax Ordinance, 2001. This amount has been claimed as refundable in the return ofincome for the year ending June 30, 2005 and the efforts are being made through the taxadvisors of the Fund to recover the same as soon as possible.

March 31, June 30, 2008 2007

Note (Un - Audited) (Audited)Rupees Rupees

8. PAYABLE TO THE MANAGEMENT COMPANY

Remuneration payable 8.1 2,405,353 2,222,830Sales Load payable 443,377 135,182

2,848,730 2,358,012

8. ACCRUED AND OTHER LIABILITIES

Payable against purchase of investments at fair value through profit or loss - 18,409,273SECP annual fee payable 836,241 1,477,809Accrued expenses 824,520 556,298Zakat payable 73,141 6,391Settlement charges payable 8,413 26,332

1,742,315 20,476,103

10. TAXATION

The income of the Fund for the period is exempt from tax under clause 99 of Part 1 of the SecondSchedule to the Income Tax Ordinance, 2001, as the Fund intends to distribute more than 90%of its accounting income for the year, as reduced by the capital gains whether realized or unrealized,among its unit holders.

The Fund is also exempt from the provisions of section 113 (minimum tax) under clause 11 of PartIV of the Second Schedule to the Income Tax Ordinance, 2001.

11. EARNINGS PER UNIT

Earnings per unit (EPU) is calculated by dividing the net income after tax for the period by thenumber of units outstanding as at the end of the period.

EPU based on cumulative weighted average units for the whole period has not been disclosed asin the opinion of the Management determination of such EPU is not practicable.

8.1 The Management Company is entitled to a remuneration for services rendered to the Fund underthe provisions of the Non Banking Finance Companies and Notified Entities Regulations, 2007during the first five years of a Fund's existence, of an amount not exceeding three percent of theaverage annual Net Assets of the Fund and thereafter of an amount equal to two percent of suchassets. During the current period, the Management Company has claimed its remuneration at therate of 2.25 percent till January 2, 2008, thereafter at the rate of 2.5 percent (2007 : 2.25 percent)of the average annual Net Assets of the Fund.

17


March 31, March 31,2008 2007

(Un - Audited) (Un - Audited)Rupees Rupees

12. CASH AND CASH EQUIVALENTS

Cash at banks 165,596,945 144,514,785

165,596,945 144,514,785

13. TRANSACTIONS WITH CONNECTED PERSONS / RELATED PARTIES

Connected persons / Related parties include Faysal Asset Management Limited (FAML) being theManagement Company and its Directors, Faysal Bank Limited (FBL), MyBank Limited, Aqeel KarimDhedhi Securities (Pvt.) Limited, Islamic Investment Company of the Gulf (Bahamas) Limited,Faysal Income & Growth Fund, Faysal Savings Growth Fund, Central Depository Company ofPakistan Limited (CDC) being the Trustee of the Fund, FAML Staff Gratuity Fund, FAML EmployeesProvident Fund, FBL Staff Gratuity Fund and FBL Staff Provident Fund.

March 31, March 31,

2008 2007(Un - Audited) (Un - Audited)

Rupees Rupees

13.1 Transactions during the period

Faysal Asset Management LimitedRemuneration of Management Company 19,491,819 26,045,794Sales Load 1,502,477 1,715,266

Faysal Savings Growth FundPurchase of units - 6,241 (2007: Nil) 625,000 -Sale of units - 506,241 (2007: Nil) 50,846,810 -

CDC - Trustee of the FundRemuneration of the Trustee 1,589,666 1,908,277Settlement charges 79,796 86,127

Faysal Bank LimitedIssue of units - 227,899 (2007: 119,689) 23,585,256 12,000,000Redemption of units - 227,899 (2007: Nil) 23,876,967 -Profit on deposit account 15,685 13,120

FBL - Staff Provident FundIssue of units - 24,154 (2007: 7,841) 2,499,673 786,176

Aqeel Karim Dhedhi Securities (Pvt.) LimitedBrokerage charges 272,320 36,059Purchase of marketable securities 178,547,955 71,496,500Sale of marketable securities 63,861,340 46,059,000

MyBank LimitedIssue of units - Nil (2007: 363,124) - 39,757,326Redemption of units-Nil (2007: 941,561) - 100,419,000

Director of the Management CompanyMohammad IqbalIssue of units - 279 (2007: 91) 28,908 9,092Redemption of units - 1,885 (2007: Nil) 198,298 -

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March 31, June 30,2008 2007

(Un - Audited) (Audited)Rupees Rupees

13.2 Outstanding balances

Faysal Asset Management LimitedRemuneration of Management Company 2,405,353 2,222,830Sales Load 443,377 135,182

Faysal Savings Growth FundInvestment - Units - Nil (June 30, 2007: 500,000) - 50,685,000

Faysal Bank LimitedUnits - 1,310,292 (June 30, 2007: 1,310,292) 144,865,883 159,185,417Balance in Saving account 450,088 1,140,095

FBL - Staff Provident FundUnits - 163,024 (June 30, 2007: 138,871) 18,023,985 16,871,402

Aqeel Karim Dhedhi Securities (Pvt.) LimitedPayable against purchase of marketable securities - 11,746,775Receivable against sale of marketable securities - 21,550,000

Directors of Management CompanyMohammad IqbalUnits - Nil (June 30, 2007: 1,606) - 195,111

Trustee of the FundRemuneration of the Trustee 181,065 180,984Settlement charges 8,413 26,332

The transactions with connected persons / related parties are in the normal course of business,at contracted rates and terms determined in accordance with market rates.

14. DATE OF AUTHORIZATION FOR ISSUE

These interim condensed financial statements were authorized for issue by the Board of Directorsof the Management Company on April 16, 2008.

15. NON-ADJUSTING EVENT AFTER BALANCE SHEET DATE

Under regulation 72 of the Non-Banking Finance Companies and Notified Entities Regulations,2007, the Fund has to distribute by way of dividend to its unit holders not less than ninety per centof its net income other than capital gains. The matter of the profit payout has been taken up withSecurities and Exchange Commission of Pakistan. We are of the understanding that the saidregulation shall be amended to allow for practicality. In view of the said regulation, the Board ofDirectors has declared a profit distribution of 90 per cent of the net profit excluding capital gainsfor the nine months period ended March 31, 2008 to the unit holders in the meeting held on April16, 2008. The liability for the profit distribution has been recorded in April 2008.

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16. GENERAL

16.1 Figures are rounded off to the nearest rupee.

16.2 Corresponding figures have been re-arranged and re-classified wherever necessary, for thepurpose of comparison. Major reclassifications are as follows:

Reclassification ReclassificationStatement Component from to Rupees

Income Statement Expenses Brokerage, Brokerage charges 3,473,615capital value tax andsettlement charges

Statement of Assets and Liabilities Accrued and other Payable to the 135,182Liabilities liabilities (Sales load Management

payable) Company




Feroz RizviDirector

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