the objective of the fund is to provide investors with long ... report sept 2015...2014-2015 lucky...

The objective of the Fund is to provide investors with

long term capital growth from an actively managed

portfolio of Shariah Compliant listed equities.

CORPORATE INFORMATION

FUND NAMENIT - Islamic Equity Fund

NAME OF AUDITORSKPMG Taseer Hadi & Co. Chartered Accountants

LIST OF BANKERSAskari Bank Limited

Bank Al Falah Limited

Bank Al Habib Limited

Bank Islami Pakistan Limited

Habib Bank Limited

MCB Bank Limited

Meezan Bank Limited

National Bank of Pakistan

Sindh Bank Limited

United Bank Limited

NIT Islamic Equity Fund (NIT IEF) Objective

The objective of the Fund is to provide investors with long term capital growth from an actively managed portfolio of Shariah Compliant listed equities.

Profile of Investment Manager

National Investment Trust Ltd. (NITL) is the first and the largest Asset Management Company of Pakistan, formed in 1962. With the recent launch of 3 new Funds namely NIT Islamic Equity Fund, NIT Pension Fund & NIT Islamic Pension Fund the size of total Funds under management by NITL is approximately Rs. 95 billion as of June 30, 2015. The family of Funds of NIT comprises of 8 funds including 4 equity Funds, 2 fixed income nature Funds, 1 conventional Pension Fund and 1 Islamic Pension Fund. NIT’s tally of nationwide branches is 23, no other Asset Management Company in Pakistan has such a vast network of nationwide branches. Further, to cater to the matters relating to investments in NIT and day to day inquiries/issues of its unit holders, a state of the art Investors’ Facilitation Centre is also in place. The Board of Directors of NITL consists of representatives of leading financial institutions, prominent industrialists and nominee of Govt. of Pakistan. The Company has been assigned an Asset Manager rating of “AM2” by PACRA, which reflects the company’s very strong capacity to manage the risks inherent in the asset management business and the asset manager meets very high investment management industry standards and benchmarks. All Investment decisions are taken by the Investment Committee of NITL.

Fund Information - NIT IEF

Fund Performance Analysis (Since Inception):

• Launch date 18th May 2015 • Minimum Investment: Rs. 5,000

• Type Shariah Compliant Open End Equity Fund

• Management Fee: 3.00%

• Fund Manager Wasim Akram • Front End Load: 0.00%-3.00%

• Fund Size as on June 30, 2015 Rs. 4.36 billion • Back End Load: 0.00%

• Par Value Rs. 10 • Auditors: KPMG Taseer Hadi & Co.

• NAV/unit (Ex-Div) Rs. 10.27 • Trustee: Central Depository Company of Pakistan Ltd.

• Pricing Mechanism Forward Pricing • Risk Profile Moderate / High

• Benchmark KMI-30 Index • Fund Rating N/A

NIT - ISLAMIC EQUITY FUNDFUND MANAGER REPORT2014-2015

2014-15

Opening Net Assets (Rs. in billion) 3.14

Opening NAV /unit (Rs.) (Ex Div) 10

Ending Net Assets (Rs. in billion) 4.36

Ending NAV/unit (Rs.) 10.27

Total Return (%) 2.70%

Maximum Funds under management during the year (Rs. in billion) 4.39

Asset Allocation

As the fund was launched on May 18, 2015, it continued to gradually deploy liquidity in the stocks market keeping in view the market conditions. As on 30th June 2015, the Fund was invested to the extent of 69.93% in Equities whereas the remaining exposure was in cash and others. The asset allocation position of the Fund as on 30-06-2015 is depicted in the chart below:

Sector Wise Breakdown of Equity Portfolio

Sector-wise breakdown of Fund’s Equity portfolio as % of total assets as on 30-06-2015 is given below:

Fund Performance Review

During the period,NIT IEF remained invested primarily in Fertilizer, Cement and the Oil & Gas exploration sectors. Since launch (May 18 2015 to 30 June 15), the KMI-30 index increased by 6.56% whereas the NAV of your Fund increased by 2.70%, thus, showing an underperformance of 3.86%.The underperformance was mainly due to low exposure to the stock market due to gradual deployment of liquidity as mentioned earlier.


Top Ten Holdings

Top ten holdings of the Fund’s portfolio as % of total assets as on June 30th 2015 are as follows:

WWF Disclosure

As of 30th June 2015, the Scheme has maintained provisions against Workers’ Welfare Fund’s liability to the tune of Rs. 0.131 million, If the same were not made, the NAV per unit/ year to date return of the Scheme would be higher by Rs. 0.0003 per unit. For details, investors are advised to read the latest Financial Statement of the Scheme.

Economic Review

The revival of growth that started in 2013-14 accelerated further in 2014-15. The factors contributing to this momentum in growth include the reform initiatives, commitment to a calibrated fiscal and monetary management and an overall improvement in macroeconomic situation. The impact of these factors was strengthened by a steep decline in oil prices, rise in foreign exchange buffers, growth in remittances and proceeds from privatization. The GDP growth accelerated to 4.2 % in 2014-15 against a growth of 4.00 % recorded in the same period last year. The growth momentum is broad based, as all major sectors like Commodities Producing Sector along with Services Sector performed better than last year amid gas shortages, power outages along with security related challenges and untoward environment behavior.

Agriculture accounted for 20.9 % of the Gross Domestic Product (GDP) in 2014-15 and is a source of livelihood of 43.5 % of rural population. During fiscal year 2014-15, the overall performance of agriculture sector recorded a growth of 2.9 % compared to the growth of 2.7 % during last year due to positive growth in all related agriculture sub sectors. Crops witnessed a growth of 1.0 %, Livestock 4.1 %, Forestry 3.2 % and Fishing 5.8 %. Manufacturing sector accounts for 13.3 % of GDP and 14.2 % of the total employed labor force. The Large Scale Manufacturing sector which has a share of 11 % in the industry and 80 % in manufacturing could not perform at the same pace as last year, registering a growth of 2.5 % in 2014-15 as compared to 4.6 % in the same period last year. The services sector registered a growth of 5% compared to last year’s growth of 4.4 %. In the services sector, major growth emanated from finance and insurance which posted a growth of 6.2 % against a target of 5.8 % and growth of 4.2 % achieved last year. During FY 2014-15, FDI inflows posted a growth of 10.2 % and reached $2,057.3 million against $1,866.3 million in the same period of FY13-14. During FY14-15, foreign private investment increased to $1,666.2 million against $1,050.3 million in the comparable period of FY14, thereby showing a sign of restoring investor’s confidence. The communications, oil & gas exploration, financial business, power and chemicals sectors remained the main recipient of FDI during the year.


Lucky Cement Engro Foods

Engro Corporation Fauji Fertilizer Bin Qasim

Fauji Fertilizer Co. Ltd. KotAddu Power Co Ltd.

Pakistan State Oil Fauji Cement Co. Ltd

Engro Fertilizer Hub Power Company Ltd.

Categorization of Unit Holders By Size - (JUNE 2015)

Category NIT-IEF Unit Holders % of Holding

Institutional Investors 83 68%

Individual 3010 32%

TOTAL 3,093 100%

OIL & GAS MARKETING COMPANIES

FERTILIZER

CEMENT

OIL & GAS EXPLORATION COMPANIES

POWER GENERATION & DISTRIBUTION

OTHERS


Workers Remittances remained a key source of external resource flows for our economy. After India, Pakistan is the second largest recipient of remittances in the South Asian region. The available data suggest that inflow of Remittances for FY 2014-15 stood at $18.5 billion as compared to $15.8 billion during the corresponding period last year, a YoY growth of 17 %. Price stability remained a high priority of the government due to socio-economic cost of inflation. Inflation rate measured through the Consumer Price Index (CPI) averaged at 4.5 % during 2014-15 as against 8.6 % in the same period last year. This is the lowest level of inflation since 2003. Pakistan’s current account deficit declined to US$2.3 billion during 2014-15 from US$3.1 billion in 2013-14. A combination of factors helped this marked improvement including declining oil prices, larger inflows under the Coalition Support Fund (CSF), lower freight charges on imports and steady growth in workers’ remittances. The trade deficit posted an increase of around 2.4% during FY 2014-15, primarily due to decline in exports. On the other hand, higher imports of metal, machinery, agriculture & other chemicals, and transport, nearly offset the gain in import bill from a sharp fall in international POL prices. Given the above macro stabilization achievements, it is expected that a better energy supply situation in the country going forward coupled with a historically low discount rate would encourage the private sector investors to expand their business and maximize capacity utilization. This will have a direct impact on the investment to GDP ratio.

(Economic data source: Economic Survey of Pakistan, FBS & SBP Website)

Other Disclosures under NBFC Regulations 2008:

The Fund Manager hereby makes the following disclosures as required under the NBFC Regulations 2008;

a. The Management Company or any of its delegates did not receive any soft commission (goods & services) from any of its brokers / dealers by virtue of transactions conducted by the Fund.

b. There was no unit split undertaken during the year.

TRUSTEE REPORT TO THE UNIT HOLDERS

Report of the Trustee pursuant to Regulation 41(h) and Clause 9 of Schedule V of the Non-Banking Finance Companies and Notified Entities Regulations, 2008

We, Central Depository Company of Pakistan Limited, being the Trustee of NIT Islamic Equity Fund (the Fund) are of the

opinion that National Investment Trust Limited being the Management Company of the Fund has in all material respects

managed the Fund during the period from April 27, 2015 to June 30, 2015 in accordance with the provisions of the

following:

(i) Limitations imposed on the investment powers of the Management Company under the constitutive documents of the Fund;

(ii) The pricing, issuance and redemption of units are carried out in accordance with the requirements of the constitutive documents of the Fund; and

(iii) The Non-Banking Finance Companies (Establishment and Regulations) Rules, 2003, the Non-Banking Finance Companies and Notified Entities Regulations, 2008 and the constitutive documents of the Fund.

Sd/-

Muhammad Hanif JakhuraChief Executive OfficerCentral Depository Company of Pakistan Limited

Karachi, October 19, 2015

TRUSTEE REPORT

REPORT OF THE SHARIAH ADVISOR

I, the Shariah Advisor of the fund, am issuing this report in accordance with the rules and regulations. The scope of the report is to express an opinion on the Shariah Compliance of the Funds activities.

In the capacity of Shariah Advisor, I have prescribed criteria and procedures to be followed in ensuring Shariah Compliance in each and every investment.

It is the responsibility of the Management Company of the fund, to establish and maintain a system of internal controls to ensure compliance with the Shariah guidelines. My responsibility is to express an opinion, based on my review, to the extent where such compliance can be objectively verified. A review is limited primarily to inquiries of the Management Company’s personnel and review of various documents prepared by the Management Company and investments to comply with the prescribed criteria.

In light of the above, I hereby certify that:

i. I have reviewed and approved the modes of investments of NIT-IEF in light of the Shariah guidelines.

ii. All the provisions of the Scheme and investments made on account of NIT-IEF by National Investment Trust Ltd. (NITL) are Shariah compliant and in accordance with the criteria established and given from time to time.

iii. On the basis of information provided by the management, all operations of NIT-IEF for the year ended 30 June 2015 have been in compliance with the Shariah principles.

During the year, Rs. 177,964/- has been recognized as charity.

May Allah give us strength to work in accordance with Quran and Sunnah and forgive our mistakes.

And Allah Knows Best.

Sd/-

Mufti Zeeshan Abdul Aziz Shariah Advisor

Karachi: September 09, 2015

INDEPENDENT AUDITORS’ REPORT TO THE UNIT HOLDERS

REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying financial statements of NIT- Islamic Equity Fund (“the Fund”), which comprise the statement of assets and liabilities as at 30 June 2015 and the related income statement, statement of comprehensive income, distribution statement, cash flow statement, statement of movement in unit holders’ fund for the period from 24 February 2015 to 30 June 2015 and a summary of significant accounting policies and other explanatory notes.

Management’s responsibility for the financial statements

The Management Company of the Fund is responsible for the preparation and fair presentation of the financial statements in accordance with approved accounting standards as applicable in Pakistan, and for such internal control as the management determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards as applicable in Pakistan. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Fund‘s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund‘s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements give a true and fair view of the state of the Fund’s affairs as at 30 June 2015 and of its financial performance, cash flows and transactions for the period from 24 February 2015 to 30 June 2015 in accordance with approved accounting standards as applicable in Pakistan.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

In our opinion, the financial statements have been prepared in accordance with the relevant provisions of the Non-Banking Finance Companies (Establishment and Regulation Rules, 2003) and Non-Banking Finance Companies and Notified Entities Regulations, 2008.

Sd/-

KPMG Taseer Hadi & Co.Chartered Accountants Muhammad NadeemDated: September 30, 2015Karachi

AUDITORS’ REPORT

NIT - ISLAMIC EQUITY FUNDSTATEMENT OF ASSETS AND LIABILITIESAS AT 30 JUNE 2015

For National Investment Trust Limited(Management Company)

Sd/- Sd/- Sd/-Managing Director Director Director

2015

Note (Rupees in '000)

AssetsBank balances 5 1,340,436 Investments 6 3,163,993 Dividend and profit receivable 7 10,581 Preliminary expenses and floatation costs 8 4,879 Security deposits 9 2,600 Total assets 4,522,489

LiabilitiesPayable to National Investment Trust Limited - Management Company 10 19,993 Payable to Central Depository Company of Pakistan Limited - Trustee 11 522 Payable to Securities and Exchange Commission of Pakistan 12 475 Payable against purchase of investments 127,994 Payable against redemption of units 372 Accrued expenses and other liabilities 13 10,641 Total liabilities 159,997

Net Assets 4,362,492

Unit holders' fund (as per statement attached) 4,362,492

Contingencies and commitments 14

(Number of units)

Number of units in issue 15 424,871,324

(Rupees)

Net assets value per unit 10.27

The annexed notes from 1 to 29 form an integral part of these financial statements.

NIT - ISLAMIC EQUITY FUNDINCOME STATEMENTFOR THE PERIOD FROM 24 FEBRUARY 2015 TO 30 JUNE 2015



2015


IncomeDividend income 2,619 Gain on sale of investments - net 7,795 Mark-up / return on bank deposits 18,122 Total income 28,536

ExpensesRemuneration of National Investment Trust Limited - Management Company 10.1 15,017 Sindh Sales Tax on remuneration of Management Company 10.1 2,613 Federal Excise Duty on remuneration of Management Company 13.2 2,403 Remuneration of Central Depository Company of Pakistan Limited - Trustee 11.1 621 Annual fee - Securities and Exchange Commission of Pakistan 12 475 Custodian charges of Central Depository Company of Pakistan Limited 90 Settlement and bank charges 343 Auditors' remuneration 16 403 Amortization of preliminary expenses and floatation costs 8 121 Printing charges 200 Annual listing fee 130 Mutual fund rating fee 200 Total expenses 22,616

Net income from operating activities 5,920

Element of income / (loss) and capital gains / (losses) included in pricesof units issued less those in units redeemed - net 653

Provision for Workers' Welfare Fund 13.1 (131)

Net income before taxation 6,442

Taxation 17 -

Net income for the period 6,442

(Rupees)

Earnings per unit - basic and diluted 18 0.02


NIT - ISLAMIC EQUITY FUNDSTATEMENT OF COMPREHENSIVE INCOMEFOR THE PERIOD FROM 24 FEBRUARY 2015 TO 30 JUNE 2015



2015



Other comprehensive income for the period

Items to be reclassified to income statement in subsequent periods:

Net unrealised appreciation on re-measurement of investments classifiedas 'available for sale' 6.2 103,071

Total comprehensive income for the period 109,513


NIT - ISLAMIC EQUITY FUNDDISTRIBUTION STATEMENTFOR THE PERIOD FROM 24 FEBRUARY 2015 TO 30 JUNE 2015



2015

(Rupees in '000)

Element of income / (loss) and capital gains / (losses) included in prices of units issued less those in units redeemed - amountrepresenting income / (loss) that form part of unit holders' fund - net 4,206


Undistributed income carried forward - realised 10,648




NIT - ISLAMIC EQUITY FUNDSTATEMENT OF MOVEMENT IN UNIT HOLDERS’ FUNDFOR THE PERIOD FROM 24 FEBRUARY 2015 TO 30 JUNE 2015

2015


Issue of 436,677,334 units 15 4,376,063 Redemption of 11,806,010 units 15 (122,431)

4,253,632

Element of (income) / loss and capital gains / losses included in prices of units issued less those in units redeemed - net

- amount representing income transferred to income statement (653) - amount representing income transferred to distribution statement (4,206)

(4,859)

Net unrealised appreciation on re-measurement of investmentsclassified as 'available for sale' 6.2 103,071

Gain on sale of investments - net 7,795 Other net loss for the period (1,353) Total comprehensive income for the period 109,513

Element of income / (loss) and capital gains / (losses) included in prices of units issued less those in units redeemed - amountrepresenting income / (loss) that form part of unit holders' fund - net 4,206

Net assets at end of the period 4,362,492 [Rs. 10.27 per unit ]


NIT - ISLAMIC EQUITY FUNDCASH FLOW STATEMENTFOR THE PERIOD FROM 24 FEBRUARY 2015 TO 30 JUNE 2015



2015


CASH FLOWS FROM OPERATING ACTIVITIES

Net income before taxation 6,442

AdjustmentsElement of (income) / loss and capital (gains) / losses included in prices of units issued less

those in units redeemed - net (653) Amortization of preliminary expenses and floatation costs 121

5,910 Increase in assets

Investments (3,060,922) Dividend and profit receivable (10,581) Preliminary expenses and floatation costs (5,000) Security deposits (2,600)

(3,079,103) Decrease in liabilities

Payable to National Investment Trust Limited - Management Company 19,993 Payable to Central Depository Company of Pakistan Limited - Trustee 522 Payable to Securities and Exchange Commission of Pakistan 475 Payable against purchase of investments 127,994 Payable against redemption of units 372 Accrued expenses and other liabilities 10,641

159,997 Net cash (used in) operating activities (2,913,196)

CASH FLOW FROM FINANCING ACTIVITIES

Amount received on issue of units 4,376,063 Payments against redemption of units (122,431)

Net cash generated from financing activities 4,253,632

Cash and cash equivalents at end of the period 1,340,436


NIT - ISLAMIC EQUITY FUNDNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE PERIOD FROM 24 FEBRUARY 2015 TO 30 JUNE 2015

1 LEGAL STATUS AND NATURE OF BUSINESS

1.1

1.2

1.3

1.4

1.5

1.6 Title to the assets of the Fund are held in the name of Central Depository Company of Pakistan Limited as trustee of the Fund.

2 BASIS OF PREPARATION

2.1 Statement of compliance

2.2 Accounting convention

These financial statements are prepared under the historical cost convention except for investments which are carried at fair value.

2.3 Functional and presentation currency

These financial statements are presented in Pak Rupees, which is the Fund's functional and presentation currency.

2.4 Critical accounting estimates and judgments

The preparation of financial statements in conformity with approved accounting standards as applicable in Pakistan requiresmanagement to make judgements, estimates and assumptions that affect the application of accounting policies and the reportedamounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of makingthe judgements about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual resultsmay differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized inthe period in which the estimates are revised if the revision affects only that period, or in the period of the revision and futureperiods if the revision affects both current and future periods. The areas where various assumptions and estimates are significantto the Fund's financial statements or where judgment was exercised in application of accounting policies principally related toclassification and valuation of investments and impairment thereagainst, if any (note 4.1 and note 6).

The NIT Islamic Equity Fund (the Fund) was established under a Trust Deed executed between National Investment Trust Limited(NITL) as Management Company and Central Depository Company of Pakistan Limited (CDC) as Trustee. The Fund wasapproved by the Securities and Exchange Commission of Pakistan (SECP) on 03 February 2015 in accordance with the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (NBFC Rules) and the Trust Deed was executed on 24February 2015. The Fund is categorized as an Equity Scheme as per the criteria for categorisation of open end collectiveinvestment scheme as specified by Securities and Exchange Commission of Pakistan (SECP) and other allied matters.

The Management Company of the Fund has been classified as a Non-Banking Finance Company (NBFC) under the NBFC Rules,2003 and has obtained the requisite license from the Securities and Exchange Commission of Pakistan (SECP) to undertake AssetManagement Services. The registered office of the Management Company is situated at 6th floor, National Bank of PakistanBuilding I.I.Chundrigar Road, Karachi.

The Fund has received Rs. 1,848 million against Pre-IPO (initial public offer) of the units from various institutions and individualsduring the period from 27 April 2015 to 8 May 2015 (both days inclusive) at the initial offer price of Rs. 10 each. In accordance withclause 1.6 and 3.13.1(d) of offering document of the Fund, the management has decided to allocate additional units against theincome earned on the investment of the Pre-IPO investors upto the start of IPO i.e. 11 May 2015 to all the investors whoparticipated in Pre-IPO. In addition, the Fund has received Rs. 2,087 million agianst IPO from various investors during the periodfrom 11 May 2015 to 15 May 2015 (both days inclusive) at Rs. 10 each. The Fund commenced its business activities from 18 May2015. Accordingly, all transactions from the start of IPO till the period ended 30 June 2015 have been reflected in the incomestatement.

The Fund is an open-ended mutual fund. Units are offered for subscription on a continuous basis. The units are transferable andcan be redeemed by surrendering them to the Fund. Subsequent to the period end, the Fund has been listed on Islamabad StockExchange.

The objective of the Fund is to invest in the equity market when there is an opportunity to invest the funds in a gainful manner andsuch investment is for the benefit of the Fund based on long term perspective to provide the unit holder safe and Halal income ontheir investment. Under the Trust Deed all conducts and acts of the fund are based on Shariah. The management company hasappointed Mufti Zeeshan Ali Aziz as Shariah Advisor to the NIT Islamic Equity Fund to ensure that the activities of the Fund are incompliance with the Principles of Shariah.

These financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan.Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the InternationalAccounting Standards Board as are notified under the Companies Ordinance, 1984, the Non-Banking Finance Companies(Establishment and Regulation) Rules, 2003 (the NBFC Rules), the Non-Banking Finance Companies and Notified EntitiesRegulations, 2008 (the NBFC Regulations) and directives issued by the Securities and Exchange Commission of Pakistan (SECP).Wherever the requirements of the NBFC Rules, the NBFC Regulations or directives issued by the SECP differ with therequirements of IFRS, the NBFC Rules, the NBFC Regulations or the directives issued by the SECP prevail.


1 LEGAL STATUS AND NATURE OF BUSINESS

1.1

1.2

1.3

1.4

1.5

1.6 Title to the assets of the Fund are held in the name of Central Depository Company of Pakistan Limited as trustee of the Fund.

2 BASIS OF PREPARATION

2.1 Statement of compliance

2.2 Accounting convention

These financial statements are prepared under the historical cost convention except for investments which are carried at fair value.

2.3 Functional and presentation currency

These financial statements are presented in Pak Rupees, which is the Fund's functional and presentation currency.

2.4 Critical accounting estimates and judgments

The preparation of financial statements in conformity with approved accounting standards as applicable in Pakistan requiresmanagement to make judgements, estimates and assumptions that affect the application of accounting policies and the reportedamounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of makingthe judgements about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual resultsmay differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized inthe period in which the estimates are revised if the revision affects only that period, or in the period of the revision and futureperiods if the revision affects both current and future periods. The areas where various assumptions and estimates are significantto the Fund's financial statements or where judgment was exercised in application of accounting policies principally related toclassification and valuation of investments and impairment thereagainst, if any (note 4.1 and note 6).

The NIT Islamic Equity Fund (the Fund) was established under a Trust Deed executed between National Investment Trust Limited(NITL) as Management Company and Central Depository Company of Pakistan Limited (CDC) as Trustee. The Fund wasapproved by the Securities and Exchange Commission of Pakistan (SECP) on 03 February 2015 in accordance with the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (NBFC Rules) and the Trust Deed was executed on 24February 2015. The Fund is categorized as an Equity Scheme as per the criteria for categorisation of open end collectiveinvestment scheme as specified by Securities and Exchange Commission of Pakistan (SECP) and other allied matters.

The Management Company of the Fund has been classified as a Non-Banking Finance Company (NBFC) under the NBFC Rules,2003 and has obtained the requisite license from the Securities and Exchange Commission of Pakistan (SECP) to undertake AssetManagement Services. The registered office of the Management Company is situated at 6th floor, National Bank of PakistanBuilding I.I.Chundrigar Road, Karachi.

The Fund has received Rs. 1,848 million against Pre-IPO (initial public offer) of the units from various institutions and individualsduring the period from 27 April 2015 to 8 May 2015 (both days inclusive) at the initial offer price of Rs. 10 each. In accordance withclause 1.6 and 3.13.1(d) of offering document of the Fund, the management has decided to allocate additional units against theincome earned on the investment of the Pre-IPO investors upto the start of IPO i.e. 11 May 2015 to all the investors whoparticipated in Pre-IPO. In addition, the Fund has received Rs. 2,087 million agianst IPO from various investors during the periodfrom 11 May 2015 to 15 May 2015 (both days inclusive) at Rs. 10 each. The Fund commenced its business activities from 18 May2015. Accordingly, all transactions from the start of IPO till the period ended 30 June 2015 have been reflected in the incomestatement.

The Fund is an open-ended mutual fund. Units are offered for subscription on a continuous basis. The units are transferable andcan be redeemed by surrendering them to the Fund. Subsequent to the period end, the Fund has been listed on Islamabad StockExchange.

The objective of the Fund is to invest in the equity market when there is an opportunity to invest the funds in a gainful manner andsuch investment is for the benefit of the Fund based on long term perspective to provide the unit holder safe and Halal income ontheir investment. Under the Trust Deed all conducts and acts of the fund are based on Shariah. The management company hasappointed Mufti Zeeshan Ali Aziz as Shariah Advisor to the NIT Islamic Equity Fund to ensure that the activities of the Fund are incompliance with the Principles of Shariah.

These financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan.Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the InternationalAccounting Standards Board as are notified under the Companies Ordinance, 1984, the Non-Banking Finance Companies(Establishment and Regulation) Rules, 2003 (the NBFC Rules), the Non-Banking Finance Companies and Notified EntitiesRegulations, 2008 (the NBFC Regulations) and directives issued by the Securities and Exchange Commission of Pakistan (SECP).Wherever the requirements of the NBFC Rules, the NBFC Regulations or directives issued by the SECP differ with therequirements of IFRS, the NBFC Rules, the NBFC Regulations or the directives issued by the SECP prevail.

3

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NEW OR AMENDMENTS / INTERPRETATION TO EXISTING STANDARD, INTERPRETATION AND FORTHCOMINGREQUIREMENTS

The following standards, amendments and interpretations of approved accounting standards and new interpretations to existingstandards will be effective for accounting periods beginning on or after 01 July 2015:

Amendments to IAS 38 Intangible Assets and IAS 16 Property, Plant and Equipment (effective for annual periods beginningon or after 1 January 2016) introduce severe restrictions on the use of revenue-based amortization for intangible assets andexplicitly state that revenue-based methods of depreciation cannot be used for property, plant and equipment. The rebuttablepresumption that the use of revenue-based amortisation methods for intangible assets is inappropriate can be overcome onlywhen revenue and the consumption of the economic benefits of the intangible asset are ‘highly correlated’, or when theintangible asset is expressed as a measure of revenue. The amendments are not likely to have an impact on the Fund’sfinancial statements.

IFRS 10 ‘Consolidated Financial Statements’ – (effective for annual periods beginning on or after 1 January 2015) replacesthe part of IAS 27 ‘Consolidated and Separate Financial Statements’. IFRS 10 introduces a new approach to determiningwhich investees should be consolidated. The single model to be applied in the control analysis requires that an investorcontrols an investee when the investor is exposed, or has rights, to variable returns from its involvement with the investee andhas the ability to affect those returns through its power over the investee. IFRS 10 has made consequential changes to IAS 27which is now called ‘Separate Financial Statements’ and will deal with only separate financial statements. Certain furtheramendments have been made to IFRS 10, IFRS 12 and IAS 28 clarifying the requirements relating to accounting forinvestment entities and would be effective for annual periods beginning on or after 1 January 2016. The adoption of thisstandard is not likely to have an impact on the Fund's financial statements.

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4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted in the preparation of these financial statements are set out below.

4.1 Financial assets

4.1.1 Classification

IAS 34 ‘Interim Financial Reporting’. IAS 34 is amended to clarify that certain disclosures, if they are not included in the notes tointerim financial statements and disclosed elsewhere should be cross referred.

The Fund classifies its financial assets in the following categories: loans and receivables, at fair value through profit or loss andavailable for sale. The classification depends on the purpose for which the financial assets were acquired. The Management Companydetermines the classification of its financial assets at initial recognition.

Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28)[effective for annual periods beginning on or after 1 January 2016]. The main consequence of the amendments is that a full gain orloss is recognised when a transaction involves a business (whether it is housed in a subsidiary or not). A partial gain or loss isrecognised when a transaction involves assets that do not constitute a business, even if these assets are housed in a subsidiary.The adoption of these amendments is not likely to have an impact on the Fund’s financial statements.

Annual Improvements 2012-2014 cycles (amendments are effective for annual period beginning on or after 1 January 2016). The newcycle of improvements contain amendments to the following standards:

IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. IFRS 5 is amended to clarify that if an entity changes themethod of disposal of an asset (or disposal group) i.e. reclassifies an asset from held for distribution to owners to held for sale orvice versa without any time lag, then such change in classification is considered as continuation of the original plan of disposal andif an entity determines that an asset (or disposal group) no longer meets the criteria to be classified as held for distribution, then itceases held for distribution accounting in the same way as it would cease held for sale accounting.

IFRS 7 ‘Financial Instruments- Disclosures’. IFRS 7 is amended to clarify when servicing arrangements are in the scope of itsdisclosure requirements on continuing involvement in transferred financial assets in cases when they are derecognized in theirentirety. IFRS 7 is also amended to clarify that additional disclosures required by ‘Disclosures: Offsetting Financial Assets andFinancial Liabilities (Amendments to IFRS7)’ are not specifically required for inclusion in condensed interim financial statements forall interim periods.

IAS 19 ‘Employee Benefits’. IAS 19 is amended to clarify that high quality corporate bonds or government bonds used indetermining the discount rate should be issued in the same currency in which the benefits are to be paid.

IFRS 11 ‘Joint Arrangements’ (effective for annual periods beginning on or after 1 January 2015) replaces IAS 31 ‘Interests in JointVentures’. Firstly, it carves out, from IAS 31 jointly controlled entities, those cases in which although there is a separate vehicle,that separation is ineffective in certain ways. These arrangements are treated similarly to jointly controlled assets/operations underIAS 31 and are now called joint operations. Secondly, the remainder of IAS 31 jointly controlled entities, now called joint ventures,are stripped of the free choice of using the equity method or proportionate consolidation; they must now always use the equitymethod. IFRS 11 has also made consequential changes in IAS 28 which has now been named ‘Investment in Associates and JointVentures’. The amendments requiring business combination accounting to be applied to acquisitions of interests in a jointoperation that constitutes a business are effective for annual periods beginning on or after 1 January 2016. The adoption of thisstandard is not likely to have an impact on the Fund's financial statements.

IFRS 12 ‘Disclosure of Interests in Other Entities’ (effective for annual periods beginning on or after 1 January 2015) combines thedisclosure requirements for entities that have interests in subsidiaries, joint arrangements (i.e. joint operations or joint ventures),associates and/or unconsolidated structured entities, into one place. The adoption of this standard is not likely to have an impacton the Fund's financial statements.

IFRS 13 ‘Fair Value Measurement’ (effective for annual periods beginning on or after 1 January 2015) defines fair value,establishes a framework for measuring fair value and sets out disclosure requirements for fair value measurements. IFRS 13explains how to measure fair value when it is required by other IFRSs. It does not introduce new fair value measurements, nordoes it eliminate the practicability exceptions to fair value measurements that currently exist in certain standards. The adoption ofthis standard is not likely to have an impact on the Fund’s financial statements.

Amendments to IAS 27 ‘Separate Financial Statements’ (effective for annual periods beginning on or after 1 January 2016). Theamendments to IAS 27 will allow entities to use the equity method to account for investments in subsidiaries, joint ventures andassociates in their separate financial statements. The adoption of the amended standard is not likely to have an impact on theFund's financial statements.

Agriculture: Bearer Plants [Amendments to IAS 16 and IAS 41] (effective for annual periods beginning on or after 1 January 2016).Bearer plants are now in the scope of IAS 16 Property, Plant and Equipment for measurement and disclosure purposes. Therefore,a company can elect to measure bearer plants at cost. However, the produce growing on bearer plants will continue to bemeasured at fair value less costs to sell under IAS 41 Agriculture. A bearer plant is a plant that: is used in the supply of agriculturalproduce; is expected to bear produce for more than one period; and has a remote likelihood of being sold as agricultural produce.Before maturity, bearer plants are accounted for in the same way as self-constructed items of property, plant and equipment duringconstruction. The adoption of the amended standard is not likely to have an impact on the Fund's financial statements.


-

-

-

-

-

-

-

-

-

-

4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted in the preparation of these financial statements are set out below.

4.1 Financial assets

4.1.1 Classification

IAS 34 ‘Interim Financial Reporting’. IAS 34 is amended to clarify that certain disclosures, if they are not included in the notes tointerim financial statements and disclosed elsewhere should be cross referred.

The Fund classifies its financial assets in the following categories: loans and receivables, at fair value through profit or loss andavailable for sale. The classification depends on the purpose for which the financial assets were acquired. The Management Companydetermines the classification of its financial assets at initial recognition.

Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28)[effective for annual periods beginning on or after 1 January 2016]. The main consequence of the amendments is that a full gain orloss is recognised when a transaction involves a business (whether it is housed in a subsidiary or not). A partial gain or loss isrecognised when a transaction involves assets that do not constitute a business, even if these assets are housed in a subsidiary.The adoption of these amendments is not likely to have an impact on the Fund’s financial statements.

Annual Improvements 2012-2014 cycles (amendments are effective for annual period beginning on or after 1 January 2016). The newcycle of improvements contain amendments to the following standards:

IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. IFRS 5 is amended to clarify that if an entity changes themethod of disposal of an asset (or disposal group) i.e. reclassifies an asset from held for distribution to owners to held for sale orvice versa without any time lag, then such change in classification is considered as continuation of the original plan of disposal andif an entity determines that an asset (or disposal group) no longer meets the criteria to be classified as held for distribution, then itceases held for distribution accounting in the same way as it would cease held for sale accounting.

IFRS 7 ‘Financial Instruments- Disclosures’. IFRS 7 is amended to clarify when servicing arrangements are in the scope of itsdisclosure requirements on continuing involvement in transferred financial assets in cases when they are derecognized in theirentirety. IFRS 7 is also amended to clarify that additional disclosures required by ‘Disclosures: Offsetting Financial Assets andFinancial Liabilities (Amendments to IFRS7)’ are not specifically required for inclusion in condensed interim financial statements forall interim periods.

IAS 19 ‘Employee Benefits’. IAS 19 is amended to clarify that high quality corporate bonds or government bonds used indetermining the discount rate should be issued in the same currency in which the benefits are to be paid.

IFRS 11 ‘Joint Arrangements’ (effective for annual periods beginning on or after 1 January 2015) replaces IAS 31 ‘Interests in JointVentures’. Firstly, it carves out, from IAS 31 jointly controlled entities, those cases in which although there is a separate vehicle,that separation is ineffective in certain ways. These arrangements are treated similarly to jointly controlled assets/operations underIAS 31 and are now called joint operations. Secondly, the remainder of IAS 31 jointly controlled entities, now called joint ventures,are stripped of the free choice of using the equity method or proportionate consolidation; they must now always use the equitymethod. IFRS 11 has also made consequential changes in IAS 28 which has now been named ‘Investment in Associates and JointVentures’. The amendments requiring business combination accounting to be applied to acquisitions of interests in a jointoperation that constitutes a business are effective for annual periods beginning on or after 1 January 2016. The adoption of thisstandard is not likely to have an impact on the Fund's financial statements.

IFRS 12 ‘Disclosure of Interests in Other Entities’ (effective for annual periods beginning on or after 1 January 2015) combines thedisclosure requirements for entities that have interests in subsidiaries, joint arrangements (i.e. joint operations or joint ventures),associates and/or unconsolidated structured entities, into one place. The adoption of this standard is not likely to have an impacton the Fund's financial statements.

IFRS 13 ‘Fair Value Measurement’ (effective for annual periods beginning on or after 1 January 2015) defines fair value,establishes a framework for measuring fair value and sets out disclosure requirements for fair value measurements. IFRS 13explains how to measure fair value when it is required by other IFRSs. It does not introduce new fair value measurements, nordoes it eliminate the practicability exceptions to fair value measurements that currently exist in certain standards. The adoption ofthis standard is not likely to have an impact on the Fund’s financial statements.

Amendments to IAS 27 ‘Separate Financial Statements’ (effective for annual periods beginning on or after 1 January 2016). Theamendments to IAS 27 will allow entities to use the equity method to account for investments in subsidiaries, joint ventures andassociates in their separate financial statements. The adoption of the amended standard is not likely to have an impact on theFund's financial statements.

Agriculture: Bearer Plants [Amendments to IAS 16 and IAS 41] (effective for annual periods beginning on or after 1 January 2016).Bearer plants are now in the scope of IAS 16 Property, Plant and Equipment for measurement and disclosure purposes. Therefore,a company can elect to measure bearer plants at cost. However, the produce growing on bearer plants will continue to bemeasured at fair value less costs to sell under IAS 41 Agriculture. A bearer plant is a plant that: is used in the supply of agriculturalproduce; is expected to bear produce for more than one period; and has a remote likelihood of being sold as agricultural produce.Before maturity, bearer plants are accounted for in the same way as self-constructed items of property, plant and equipment duringconstruction. The adoption of the amended standard is not likely to have an impact on the Fund's financial statements.

a) Loans and receivables

These are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market.

b) Financial assets at fair value through profit or loss

Financial assets that are acquired principally for the purpose of generating profit from short-term fluctuations in prices are classified as held for trading in the 'Financial assets at fair value through profit or loss' category.

c) Available for sale

4.1.2 Regular way contracts

4.1.3 Initial recognition and measurement

4.1.4 Subsequent measurement

a) Basis of valuation of equity securities

4.1.5 Impairment of financial assets

Subsequent to initial recognition financial assets classified as 'Loans and receivables' are carried at amortised cost using the effectiveinterest method.

Gain or loss is also recognised in the 'income statement' when financial assets carried at amortised cost are derecognised or impaired,and through the amortisation process.

The carrying value of the Fund's assets are reviewed at each reporting date to determine whether there is any indication of impairment.If such an indication exists, the recoverable amount of such asset is estimated. An impairment loss is recognised whenever the carryingamount of an asset exceeds its recoverable amount. Impairment losses are recognised in the income statement.

Impairment loss on investment other than 'available for sale' is recognised in the Income Statement whenever the carrying amount ofinvestment exceeds its recoverable amount. If in a subsequent period, the amount of an impairment loss recognised decreases theimpairment is reversed through the Income Statement.

Financial assets are initially recognised at fair value plus transaction costs except for financial assets carried at fair value through profitor loss. Financial assets carried at fair value through profit or loss are initially recognised at fair value and transaction costs areexpensed as incurred in the income statement.

Subsequent to initial recognition, financial assets designated by the management as at fair value through profit or loss and available forsale are valued as follows:

The investment of the Fund in equity securities is valued on the basis of closing quoted market prices available at the stockexchange.

Net gains and losses arising from changes in the fair value of financial assets carried at fair value through profit or loss are taken to the'income statement'.

Net gains and losses arising from changes in fair value of available for sale financial assets are taken to the 'statement ofcomprehensive income' until these are derecognised or impaired. At this time, the cumulative gain or loss previously recognised directlyin the 'statement of comprehensive income' is transferred to the 'income statement'.

Available for sale financial assets are those non-derivative financial assets that are designated as available for sale or are notclassified as (a) loans and receivables or (b) financial assets at fair value through profit or loss. These are intended to be held foran indefinite period of time which may be sold in response to the needs for liquidity or change in price.

Regular purchases and sales of financial assets are recognised on the trade date - the date on which the Fund commits to purchase orsell the asset.


c) Available for sale

4.1.2 Regular way contracts

4.1.3 Initial recognition and measurement

4.1.4 Subsequent measurement

a) Basis of valuation of equity securities

4.1.5 Impairment of financial assets

Subsequent to initial recognition financial assets classified as 'Loans and receivables' are carried at amortised cost using the effectiveinterest method.

Gain or loss is also recognised in the 'income statement' when financial assets carried at amortised cost are derecognised or impaired,and through the amortisation process.

The carrying value of the Fund's assets are reviewed at each reporting date to determine whether there is any indication of impairment.If such an indication exists, the recoverable amount of such asset is estimated. An impairment loss is recognised whenever the carryingamount of an asset exceeds its recoverable amount. Impairment losses are recognised in the income statement.

Impairment loss on investment other than 'available for sale' is recognised in the Income Statement whenever the carrying amount ofinvestment exceeds its recoverable amount. If in a subsequent period, the amount of an impairment loss recognised decreases theimpairment is reversed through the Income Statement.

Financial assets are initially recognised at fair value plus transaction costs except for financial assets carried at fair value through profitor loss. Financial assets carried at fair value through profit or loss are initially recognised at fair value and transaction costs areexpensed as incurred in the income statement.

Subsequent to initial recognition, financial assets designated by the management as at fair value through profit or loss and available forsale are valued as follows:

The investment of the Fund in equity securities is valued on the basis of closing quoted market prices available at the stockexchange.

Net gains and losses arising from changes in the fair value of financial assets carried at fair value through profit or loss are taken to the'income statement'.

Net gains and losses arising from changes in fair value of available for sale financial assets are taken to the 'statement ofcomprehensive income' until these are derecognised or impaired. At this time, the cumulative gain or loss previously recognised directlyin the 'statement of comprehensive income' is transferred to the 'income statement'.

Available for sale financial assets are those non-derivative financial assets that are designated as available for sale or are notclassified as (a) loans and receivables or (b) financial assets at fair value through profit or loss. These are intended to be held foran indefinite period of time which may be sold in response to the needs for liquidity or change in price.

Regular purchases and sales of financial assets are recognised on the trade date - the date on which the Fund commits to purchase orsell the asset.

4.1.6 Derecognition

4.1.7 Offsetting of financial assets and liabilities

4.2 Cash and cash equivalents

4.3 Derivatives

4.4 Financial liabilities

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expired.

Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have beentransferred and where the Fund has transferred substantially all risks and rewards of ownership.

Financial assets and financial liabilities are offset and the net amount is reported in the Statement of Assets and Liabilities when there isa legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis, or to realise the assetsand settle the liabilities simultaneously.

Cash and cash equivalents comprise of deposits and profit and loss sharing accounts maintained with banks. Cash equivalents areshort term highly liquid investments that are readily convertible to known amounts of cash, are subject to an insignificant risk of changesin value, and are held for the purpose of meeting short term cash commitments rather than for investments and other purposes.

Derivative instruments are initially recognised at fair value and subsequent to initial measurement each derivative instrument isremeasured to its fair value and the resultant gain or loss is recognised in the income statement.

All financial liabilities are recognised at the time when the Fund becomes a party to the contractual provisions of the instrument. Theyare initially recognised at fair value and subsequently stated at amortised cost.

In case of equity securities classified as available-for-sale, a significant or prolonged decline in the fair value of the security below itscost is considered as an indicator that the securities are impaired. If any such evidence exists for available forsale financial assets, thecumulative loss measured as the difference between the acquisition cost and the current fair value is reclassified from othercomprehensive income to income statement. Impairment losses recognised on equity securities in the income statement are notreversed subsequently.


4.1.6 Derecognition

4.1.7 Offsetting of financial assets and liabilities

4.2 Cash and cash equivalents

4.3 Derivatives

4.4 Financial liabilities

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expired.

Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have beentransferred and where the Fund has transferred substantially all risks and rewards of ownership.

Financial assets and financial liabilities are offset and the net amount is reported in the Statement of Assets and Liabilities when there isa legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis, or to realise the assetsand settle the liabilities simultaneously.

Cash and cash equivalents comprise of deposits and profit and loss sharing accounts maintained with banks. Cash equivalents areshort term highly liquid investments that are readily convertible to known amounts of cash, are subject to an insignificant risk of changesin value, and are held for the purpose of meeting short term cash commitments rather than for investments and other purposes.

Derivative instruments are initially recognised at fair value and subsequent to initial measurement each derivative instrument isremeasured to its fair value and the resultant gain or loss is recognised in the income statement.

All financial liabilities are recognised at the time when the Fund becomes a party to the contractual provisions of the instrument. Theyare initially recognised at fair value and subsequently stated at amortised cost.

In case of equity securities classified as available-for-sale, a significant or prolonged decline in the fair value of the security below itscost is considered as an indicator that the securities are impaired. If any such evidence exists for available forsale financial assets, thecumulative loss measured as the difference between the acquisition cost and the current fair value is reclassified from othercomprehensive income to income statement. Impairment losses recognised on equity securities in the income statement are notreversed subsequently.

4.5 Preliminary expenses and floatation costs

4.6 Provisions

4.7 Taxation

4.8 Issue and redemption of units

Units redeemed are recorded at the redemption price, applicable to units for which the distributors receive redemption applicationsduring business hours of that day. The redemption price represents the net assets value per unit as of the close of the businessday less any back-end load , any duties, taxes, charges on redemption and any provision for transaction costs, if applicable.

Preliminary expenses and floatation costs (formation cost) represent expenditure incurred prior to the commencement ofoperations of the Fund and include underwriting commission, commission to the bankers to the issue, brokerage paid to themembers of the stock exchanges and other expenses. These costs are being amortised over a period of five years starting fromthe end of the initial offering period as per the requirements set out in the Trust Deed of the Fund and NBFC regulations.

Provisions are recognised when the Fund has a present, legal or constructive obligation as a result of past events, it is probablethat an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of theobligation can be made. Provisions are regularly reviewed and adjusted to reflect the current best estimate.

The income of the Fund is exempt from income tax as per clause 99 of Part I of the Second Schedule to the Income TaxOrdinance, 2001 subject to the condition that not less than ninety percent of its accounting income for the year, as reduced bycapital gains, whether realised or unrealised, is distributed among the unit holders, provided that for the purpose of determiningdistribution of not less than 90% of its accounting income for the year, the income distributed through bonus units shall not betaken into account.

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

The Fund provides for deferred taxation using the balance sheet liability method on all major temporary differences between theamounts used for financial reporting purposes and amounts used for taxation purposes. In addition, the Fund also records deferredtax asset on unutilised tax losses to the extent that it is no longer probable that the related tax benefit will be realised. However, theFund has not recognised any amount in respect of deferred tax in these financial statements as the Fund intends to avail the taxexemption in future years by distributing at least ninety percent of its accounting income for the year as reduced by capital gains,whether realised or unrealised, to its unit holders every year.

Units issued are recorded at the offer price, determined by the Management Company for the applications received by thedistributors / Management Company during business hours on the date on which the funds are actually realized againstapplication. The offer price represents the net assets value per unit as of the close of the business day plus the allowable salesload, provision for transaction costs and any provision for duties and charges, if applicable.


4.9

4.10 Net assets value per unit

4.11 Revenue recognition

-

-

-

- Mark-up / return on bank deposits is recognised using effective yield method.

4.12 Proposed distributions

Dividend / distributions are recognised in the financial statements in the period in which such distributions are declared / approved.

5 BANK BALANCES

These represent balances with banks in savings accounts carrying mark-up rates ranging from 3.14% to 6.85% per annum.

6 INVESTMENTS 2015(Rupees in '000)

Available for sale - Listed equity securities 6.1 3,163,993

Unrealised appreciation / (dimunition) arising on remeasurement of investments classified as available for sale are included inthe statement of comprehensive income in the period in which they arise.

Dividend income is recognised when the right to receive dividend is established i.e. on the date of book closure of the investeecompany / institution declaring the dividend.

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

An equalisation account called the 'element of income / (loss) and capital gains / (losses) included in prices of units issued lessthose in units redeemed' is created, in order to prevent the dilution of per unit income and distribution of income already paid outon redemption.

An equalisation account called the 'element of income / (loss) and capital gains / (losses) included in prices of units issued lessthose in units redeemed' is created, in order to prevent the dilution of per unit income and distribution of income already paid outon redemption.

The net assets value (NAV) per unit, as disclosed on the Statement of Assets and Liabilities is calculated by dividing the net assetsof the Fund by the number of units in circulation at the period end.

Realised gains / (losses) arising on sale of investments are included in the income statement on the date at which thetransaction takes place.

6.1 Available for sale - Listed equity securities

COMMERCIAL BANKSMeezan Bank Limited 686,500 - 686,500 28,385 28,147 0.65 0.89 0.09

686,500 - 686,500 28,385 28,147 0.65 0.89

TEXTILE COMPOSITENishat Mills Limited 70,000 70,000 - - - - - -

70,000 70,000 - - - - -

CEMENTD. G. Khan Cement Company Limited 823,000 823,000 - - - - - - Fauji Cement Company Limited 4,247,500 - 4,247,500 149,490 148,110 3.40 4.68 0.32 Lucky Cement Limited 805,700 - 805,700 371,687 418,658 9.60 13.23 0.25

5,876,200 823,000 5,053,200 521,177 566,768 13.00 17.91

POWER GENERATION & DISTRIBUTIONHub Power Company Limited 1,574,500 - 1,574,500 150,784 147,326 3.38 4.66 0.14 Kot Addu Power Company Limited 1,862,500 - 1,862,500 161,103 160,250 3.67 5.06 0.21

3,437,000 - 3,437,000 311,887 307,576 7.05 9.72

OIL & GAS MARKETING COMPANIESPakistan State Oil Company Limited 684,800 - 684,800 268,234 264,189 6.06 8.35 0.25

684,800 - 684,800 268,234 264,189 6.06 8.35

OIL & GAS EXPLORATION COMPANIESOil & Gas Development Company Limited 406,800 - 406,800 75,984 72,915 1.67 2.30 0.01 Pakistan Oilfields Limited 249,800 - 249,800 97,164 100,874 2.31 3.19 0.11 Pakistan Petrolenum Limited 822,700 - 822,700 140,397 135,137 3.10 4.27 0.04

1,479,300 - 1,479,300 313,545 308,926 7.08 9.76

AUTOMOBILE ASSEMBLERHonda Atlas Car Limited 279,000 - 279,000 63,236 61,012 1.40 1.93 0.20 Indus Motor Copmany Limited 39,450 - 39,450 50,684 49,273 1.13 1.56 0.05 Millat Tractors Limited 16,750 - 16,750 11,541 11,487 0.26 0.36 0.04 Pak Suzuki Motor Company Limited 59,500 - 59,500 26,183 25,937 0.59 0.82 0.07

394,700 - 394,700 151,644 147,709 3.38 4.67

FERTILIZERSDawood Herculus Corporation Limited 11,000 - 11,000 1,212 1,284 0.03 0.04 0.00 Engro Corporation Limited 1,317,400 - 1,317,400 384,685 391,004 8.96 12.35 0.25 Engro Fertilizers Limited 2,394,000 - 2,394,000 205,995 212,324 4.87 6.71 0.18 Fatima Fertilizer Company Limited 1,044,000 - 1,044,000 40,025 40,789 0.93 1.29 0.06 Fauji Fertilizer Bin Qasim Limited 2,951,000 - 2,951,000 151,141 163,249 3.74 5.16 0.32 Fauji Fertilizer Company Limited 2,489,600 - 2,489,600 353,976 371,996 8.53 11.76 0.20

10,207,000 - 10,207,000 1,137,034 1,180,646 27.06 37.31

PHARMACEUTICALSAbbot Laboatories (Pakistan) Limited 47,900 - 47,900 29,994 31,965 0.73 1.01 0.05 Ferozsons Laboratories Limited 47,650 - 47,650 28,073 30,474 0.70 0.96 0.16 Glaxosmithkline Pakistan Limited 205,900 - 205,900 40,438 40,262 0.92 1.27 0.06 Searle Pakistan Limited 95,500 - 95,500 24,449 30,626 0.70 0.97 0.11

396,950 - 396,950 122,954 133,327 3.05 4.21

PAPER AND BOARDPackages limited 43,600 - 43,600 26,197 25,902 0.59 0.82 0.05

43,600 - 43,600 26,197 25,902 0.59 0.82

LEATHER AND TENNERIESBata Pakistan Limited 640 - 640 2,325 2,389 0.05 0.08 0.01 Service Industries Limited 6,600 - 6,600 5,243 5,579 0.13 0.18 0.05

7,240 - 7,240 7,568 7,968 0.18 0.26

FOOD AND PERSONAL CARE PRODUCTSEngro Foods Limited 1,161,500 - 1,161,500 155,788 175,898 4.03 5.56 0.15 Mitchell's Fruit Farms Limited 37,650 - 37,650 16,008 16,435 0.38 0.52 0.48 Shezan International Limited 550 - 550 501 502 0.01 0.02 0.01

1,199,700 - 1,199,700 172,297 192,835 4.42 6.10

Total 24,482,990 893,000 23,589,990 3,060,922 3,163,993 72.52 100.00

6.1.1 All the shares are fully paid up ordinary shares of Rs. 10 each unless otherwise stated.

6.2 Net unrealised appreciation on re-measurement of 2015investments classified as 'available for sale'

(Rupees in '000)

Market value of investments 6.1 3,163,993 Less: Cost of investments 6.1 (3,060,922)

103,071

Investments include shares with market value of Rs 220.3474 million which have been pledged with National Clearing Company ofPakistan Limited for guaranteeing settlement of the Fund's trades in accordance with Circular no. 11 dated 23 October 2007 issuedby the Securities and Exchange Commission of Pakistan.

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

Percentageof paid-up

capital of theinvestee

company held

Name of the investee Company Purchasesduring the

period

Sales during

the period

As at30 June 2015

Cost as at 30 June 2015

Market value as at

30 June 2015

Marketvalue as apercentage

of net assets

Marketvalue as a

percentage ofinvestments

----------------------------------- (Rupees in '000) -----------------------------------

The element of income / (loss) and capital gains / (losses) included in the prices of units issued less those in units redeemed to the extent that it is represented by income earned during the period is recognised in income statement and to the extent that it is represented by unrealised appreciation / (diminution) arising during the period on available for sale securities is included in distribution statement.

NIT - ISLAMIC EQUITY FUNDNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE PERIOD FROM 24 FEBRUARY 2015 TO 30 JUNE 20156.1 Available for sale - Listed equity securities


686,500 - 686,500 28,385 28,147 0.65 0.89


70,000 70,000 - - - - -


5,876,200 823,000 5,053,200 521,177 566,768 13.00 17.91


3,437,000 - 3,437,000 311,887 307,576 7.05 9.72


684,800 - 684,800 268,234 264,189 6.06 8.35


1,479,300 - 1,479,300 313,545 308,926 7.08 9.76


394,700 - 394,700 151,644 147,709 3.38 4.67


10,207,000 - 10,207,000 1,137,034 1,180,646 27.06 37.31


396,950 - 396,950 122,954 133,327 3.05 4.21


43,600 - 43,600 26,197 25,902 0.59 0.82


7,240 - 7,240 7,568 7,968 0.18 0.26


1,199,700 - 1,199,700 172,297 192,835 4.42 6.10

Total 24,482,990 893,000 23,589,990 3,060,922 3,163,993 72.52 100.00



(Rupees in '000)


103,071


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



company held


period

Sales during

the period

As at30 June 2015


Market value as at

30 June 2015


of net assets

Marketvalue as a


----------------------------------- (Rupees in '000) -----------------------------------



686,500 - 686,500 28,385 28,147 0.65 0.89


70,000 70,000 - - - - -


5,876,200 823,000 5,053,200 521,177 566,768 13.00 17.91


3,437,000 - 3,437,000 311,887 307,576 7.05 9.72


684,800 - 684,800 268,234 264,189 6.06 8.35


1,479,300 - 1,479,300 313,545 308,926 7.08 9.76


394,700 - 394,700 151,644 147,709 3.38 4.67


10,207,000 - 10,207,000 1,137,034 1,180,646 27.06 37.31


396,950 - 396,950 122,954 133,327 3.05 4.21


43,600 - 43,600 26,197 25,902 0.59 0.82


7,240 - 7,240 7,568 7,968 0.18 0.26


1,199,700 - 1,199,700 172,297 192,835 4.42 6.10

Total 24,482,990 893,000 23,589,990 3,060,922 3,163,993 72.52 100.00



(Rupees in '000)


103,071


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



company held


period

Sales during

the period

As at30 June 2015


Market value as at

30 June 2015


of net assets

Marketvalue as a


----------------------------------- (Rupees in '000) -----------------------------------




686,500 - 686,500 28,385 28,147 0.65 0.89


70,000 70,000 - - - - -


5,876,200 823,000 5,053,200 521,177 566,768 13.00 17.91


3,437,000 - 3,437,000 311,887 307,576 7.05 9.72


684,800 - 684,800 268,234 264,189 6.06 8.35


1,479,300 - 1,479,300 313,545 308,926 7.08 9.76


394,700 - 394,700 151,644 147,709 3.38 4.67


10,207,000 - 10,207,000 1,137,034 1,180,646 27.06 37.31


396,950 - 396,950 122,954 133,327 3.05 4.21


43,600 - 43,600 26,197 25,902 0.59 0.82


7,240 - 7,240 7,568 7,968 0.18 0.26


1,199,700 - 1,199,700 172,297 192,835 4.42 6.10

Total 24,482,990 893,000 23,589,990 3,060,922 3,163,993 72.52 100.00



(Rupees in '000)


103,071


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



company held


period

Sales during

the period

As at30 June 2015


Market value as at

30 June 2015


of net assets

Marketvalue as a


----------------------------------- (Rupees in '000) -----------------------------------

7 DIVIDEND AND PROFIT RECEIVABLE 2015(Rupees in '000)

Dividend receivable 2,797Profit receivable on savings accounts 7,784

10,581

8 PRELIMINARY EXPENSES AND FLOATATION COSTS

Incurred during the period 5,000Less: amortisation during the period (121)Balance at end of the period 4,879

8.1

8.2

9 SECURITY DEPOSITS

Central Depository Company of Pakistan Limited 100 National Clearing Company of Pakistan Limited 2,500

2,600

10 PAYABLE TO NATIONAL INVESTMENT TRUST LIMITED - MANAGEMENT COMPANY

Management remuneration 10.1 10,518 Sindh Sales Tax 10.1 1,830 Preliminary expenses and floatation costs 5,000 Others 2,645

19,993

10.1

11 PAYABLE TO CENTRAL DEPOSITORY COMPANY OF PAKISTAN LIMITED - TRUSTEE

Trustee remuneration 432 Custodian charges 90

522

11.1

Based on the Trust Deed, the tariff structure applicable to the Fund as at 30 June 2015 is as follows:

Amount of funds under management Tariff per annum(Average NAV)

Upto Rs 1,000 million Rs 0.7 million or 0.2% p.a. of NAV, whichever is higher.On an amount exceeding Rs 1,000 million Rs 2.0 million plus 0.1% p.a. of NAV exceeding Rs 1,000 million.

Preliminary expenses and floatation costs represent expenditure incurred prior to the commencement of operations of the Fundand have been restricted to Rs. 5 million as per the requirement of the Trust Deed.

These expenses are being amortised over a period of five years commencing from 18 May 2015 in accordance with therequirement of clause 14.3.1 of the Trust Deed of the Fund.

Under the provisions of the NBFC Regulations, 2008, the Management Company of the Fund is entitled to a remuneration duringthe first five years of the Fund, of an amount not exceeding three percent of the average annual net assets of the Fund andthereafter of an amount equal to two percent of such assets of the Fund. The Management Company has charged its remunerationat the rate of 3 percent per annum of the average annual net assets of the Fund for the current period. The remuneration is paid ona monthly basis in arrears. The Sindh Government has levied Sindh Sales Tax at the rate of 15% on the remuneration of theManagement Company through Sindh Sales Tax Act, 2011 effective from 01 July 2014.

The Trustee is entitled to a monthly remuneration for services rendered to the Fund under the provisions of the Trust Deed as perthe tariff specified therein, based on the daily net assets of the Fund.


7 DIVIDEND AND PROFIT RECEIVABLE 2015(Rupees in '000)

Dividend receivable 2,797Profit receivable on savings accounts 7,784

10,581

8 PRELIMINARY EXPENSES AND FLOATATION COSTS

Incurred during the period 5,000Less: amortisation during the period (121)Balance at end of the period 4,879

8.1

8.2

9 SECURITY DEPOSITS

Central Depository Company of Pakistan Limited 100 National Clearing Company of Pakistan Limited 2,500

2,600

10 PAYABLE TO NATIONAL INVESTMENT TRUST LIMITED - MANAGEMENT COMPANY

Management remuneration 10.1 10,518 Sindh Sales Tax 10.1 1,830 Preliminary expenses and floatation costs 5,000 Others 2,645

19,993

10.1

11 PAYABLE TO CENTRAL DEPOSITORY COMPANY OF PAKISTAN LIMITED - TRUSTEE

Trustee remuneration 432 Custodian charges 90

522

11.1

Based on the Trust Deed, the tariff structure applicable to the Fund as at 30 June 2015 is as follows:

Amount of funds under management Tariff per annum(Average NAV)

Upto Rs 1,000 million Rs 0.7 million or 0.2% p.a. of NAV, whichever is higher.On an amount exceeding Rs 1,000 million Rs 2.0 million plus 0.1% p.a. of NAV exceeding Rs 1,000 million.

Preliminary expenses and floatation costs represent expenditure incurred prior to the commencement of operations of the Fundand have been restricted to Rs. 5 million as per the requirement of the Trust Deed.

These expenses are being amortised over a period of five years commencing from 18 May 2015 in accordance with therequirement of clause 14.3.1 of the Trust Deed of the Fund.

Under the provisions of the NBFC Regulations, 2008, the Management Company of the Fund is entitled to a remuneration duringthe first five years of the Fund, of an amount not exceeding three percent of the average annual net assets of the Fund andthereafter of an amount equal to two percent of such assets of the Fund. The Management Company has charged its remunerationat the rate of 3 percent per annum of the average annual net assets of the Fund for the current period. The remuneration is paid ona monthly basis in arrears. The Sindh Government has levied Sindh Sales Tax at the rate of 15% on the remuneration of theManagement Company through Sindh Sales Tax Act, 2011 effective from 01 July 2014.

The Trustee is entitled to a monthly remuneration for services rendered to the Fund under the provisions of the Trust Deed as perthe tariff specified therein, based on the daily net assets of the Fund.

12 PAYABLE TO SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN

13 ACCRUED EXPENSES AND OTHER LIABILITIES 2015

(Rupees in '000)

Provision for Workers' Welfare Fund 13.1 131Federal Excise Duty 13.2 2,403Annual listing fee 130Mutual fund rating fee 200Auditors' remuneration 403Charity payable 178Printing charges 200Zakat 25Capital gain tax 5Brokerage 6,966

10,641

13.1

There is no minimum fee for the initial one year from the date of launching of fund. The remuneration is paid to the Trustee monthlyin arrears.

Under the provisions of the NBFC Regulations, 2008, a collective investment scheme categorised as equity scheme is required topay as annual fee to the SECP, an amount equal to 0.095 percent of the average annual net assets of the scheme.

The Finance Act 2008 introduced an amendment to the Workers' Welfare Fund Ordinance, 1971 (WWF Ordinance). As a result ofthis amendment it may be construed that all Collective Investment Schemes / mutual funds (CISs) whose income exceeds Rs. 0.5million in a tax year, have been brought within the scope of the WWF Ordinance, thus rendering them liable to pay contribution toWWF at the rate of two percent of their accounting or taxable income, whichever is higher. In this regard, a constitutional petitionhas been filed by certain CISs through their trustees in the Honorable High Court of Sindh (the Court), challenging the applicabilityof WWF to the CISs, which is pending adjudication.

During the year ended 30 June 2011, a clarification was issued by the Ministry of Labour and Manpower (the Ministry) which statedthat mutual funds are not liable to contribute to WWF on the basis of their income. However, on 14 December 2010, the Ministryfiled its response against the constitutional petition requesting the Court to dismiss the petition. According to the legal counsel whois handling the case there is a contradiction between the aforementioned clarification issued by the Ministry and the response filedby the Ministry in Court.

During the year ended 30 June 2012, 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, had declared thesaid amendments as unlawful and unconstitutional. In March 2013, a larger bench of the Sindh High Court (SHC) passed an orderdeclaring that the amendments introduced in the WWF Ordinance, 1971 through the Finance Act 2006 and 2008 respectively donot suffer from any constitutional or legal infirmity. However, the Honourable High Court of Sindh has not addressed the otheramendments made in the WWF Ordinance 1971 about applicability of WWF to the CISs which is still pending before the Court.The decisions of SHC (in against) and LHC ( in favour) are pending before Supreme Court. However, the Management Company,as a matter of abundant caution, has decided to maintain the provision for WWF amounting to Rs. 0.131 million. Had the same notbeen made the net assets value per unit of the Fund would have been higher by Rs 0.0003 per unit.

13.2

14 CONTINGENCIES AND COMMITMENTS

There were no contingencies and commitments outstanding as at 30 June 2015.

15 NUMBER OF UNITS IN ISSUE 2015

(Number of units)

Units issued against Pre-IPO investment* 185,171,885 Units issued against IPO investment 208,782,302 Units issued during the period 42,723,147 Units redeemed (11,806,010) Total units in issue at end of the period 424,871,324

* This includes 349,535 units issued against income earned on Pre-IPO investment.

16 AUDITORS' REMUNERATION (Rupees in '000)

Statutory audit fee 250 Fee for the of statement of compliance with the best practice of the Code of Corporate Governance and others 100 Out of pocket expenses including government levy 53

403

17 TAXATION

As per the requirement of Finance Act, 2013, Federal Excise Duty (FED) at the rate of 16% on the remuneration of theManagement Company has been applied effective 13 June 2013. The Management Company is of the view that since theremuneration is already subject to provincial sales tax, further levy of FED may result in double taxation, which does not appear tobe the spirit of the law. The matter has been taken up collectively by the Mutual Fund Association of Pakistan where variousoptions are being considered. The High Court of Sindh in its order dated 09 September 2013 granted stay to the various funds forthe recovery of FED. As a matter of abundant caution, the Management Company has made a provision amounting to Rs. 2.403million. Had the provision not been made, the net assets value (NAV) per unit of the fund as at 30 June 2015 would have beenhigher by Rs. 0.0057 per unit.

The Fund's income is exempt from Income Tax as per clause (99) of part I of the Second Schedule to the Income Tax Ordinance,2001 subject to the condition that not less than 90% of the accounting income for the year as reduced by capital gains whetherrealised or unrealised is distributed amongst the unit holders, provided that for the purpose of determining distribution of not lessthan 90% of its accounting income for the year, the income distributed through bonus units shall not be taken into account.Furthermore, as per regulation 63 of the Non-Banking Finance Companies and Notified Entities Regulations, 2008, the Fund isrequired to distribute 90% of the net accounting income other than capital gains to the unit holders during the year. The Fund hasnot made any distribution during the period due to the fact that after exclusion of capital gains, its income for the period is negativeand accordingly no provision has been made in the financial statements for the period ended 30 June 2015.

NIT - ISLAMIC EQUITY FUNDNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE PERIOD FROM 24 FEBRUARY 2015 TO 30 JUNE 201513.2

14 CONTINGENCIES AND COMMITMENTS

There were no contingencies and commitments outstanding as at 30 June 2015.

15 NUMBER OF UNITS IN ISSUE 2015

(Number of units)

Units issued against Pre-IPO investment* 185,171,885 Units issued against IPO investment 208,782,302 Units issued during the period 42,723,147 Units redeemed (11,806,010) Total units in issue at end of the period 424,871,324

* This includes 349,535 units issued against income earned on Pre-IPO investment.

16 AUDITORS' REMUNERATION (Rupees in '000)

Statutory audit fee 250 Fee for the of statement of compliance with the best practice of the Code of Corporate Governance and others 100 Out of pocket expenses including government levy 53

403

17 TAXATION

As per the requirement of Finance Act, 2013, Federal Excise Duty (FED) at the rate of 16% on the remuneration of theManagement Company has been applied effective 13 June 2013. The Management Company is of the view that since theremuneration is already subject to provincial sales tax, further levy of FED may result in double taxation, which does not appear tobe the spirit of the law. The matter has been taken up collectively by the Mutual Fund Association of Pakistan where variousoptions are being considered. The High Court of Sindh in its order dated 09 September 2013 granted stay to the various funds forthe recovery of FED. As a matter of abundant caution, the Management Company has made a provision amounting to Rs. 2.403million. Had the provision not been made, the net assets value (NAV) per unit of the fund as at 30 June 2015 would have beenhigher by Rs. 0.0057 per unit.

The Fund's income is exempt from Income Tax as per clause (99) of part I of the Second Schedule to the Income Tax Ordinance,2001 subject to the condition that not less than 90% of the accounting income for the year as reduced by capital gains whetherrealised or unrealised is distributed amongst the unit holders, provided that for the purpose of determining distribution of not lessthan 90% of its accounting income for the year, the income distributed through bonus units shall not be taken into account.Furthermore, as per regulation 63 of the Non-Banking Finance Companies and Notified Entities Regulations, 2008, the Fund isrequired to distribute 90% of the net accounting income other than capital gains to the unit holders during the year. The Fund hasnot made any distribution during the period due to the fact that after exclusion of capital gains, its income for the period is negativeand accordingly no provision has been made in the financial statements for the period ended 30 June 2015.

18 EARNINGS PER UNIT - BASIC AND DILUTED 2015

(Rupees in '000)


(Units)

Weighted average number of units in issue during the period 406,426,777

(Rupees)

Earnings per unit 0.02

19 FINANCIAL INSTRUMENTS BY As at 30 June 2015

Loans and receivables

Available for sale Total

------------ (Rupees in '000) ------------AssetsBank balances 1,340,436 - 1,340,436 Investments - 3,163,993 3,163,993 Dividend and profit receivable 10,581 - 10,581 Security deposits 2,600 - 2,600

1,353,617 3,163,993 4,517,610

As at 30 June 2015

Liabilities at fair value through profit or loss

At amortised cost Total

------------ (Rupees in '000) ------------LiabilitiesPayable to National Investment Trust

Limited - Management Company - 19,993 19,993 Payable to Central Depository Company

of Pakistan Limited - Trustee - 522 522 Payable against purchase of investments - 127,994 127,994 Payable against redemption of units - 372 372 Accrued expenses and other liabilities - 10,480 10,480

- 159,361 159,361

20 TRANSACTIONS AND BALANCES WITH CONNECTED PERSONS

20.1

20.2

20.3

CATEGORY

Connected persons include National Investment Trust Limited being the Management Company, Central Depository Company ofPakistan Limited being the Trustee, other collective investment schemes managed by the Management Company, any person orcompany beneficially owning directly or indirectly ten percent or more of the capital of the Management Company or the net assetsof the Fund and directors and officers of the Management Company and the Trustee and unit holders holding 10 percent or moreunits of the Fund.

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

Remuneration of the Management Company and the Trustee is determined in accordance with the provisions of the NBFCRegulations and the Trust Deed respectively.


18 EARNINGS PER UNIT - BASIC AND DILUTED 2015

(Rupees in '000)


(Units)

Weighted average number of units in issue during the period 406,426,777

(Rupees)

Earnings per unit 0.02

19 FINANCIAL INSTRUMENTS BY As at 30 June 2015

Loans and receivables

Available for sale Total

------------ (Rupees in '000) ------------AssetsBank balances 1,340,436 - 1,340,436 Investments - 3,163,993 3,163,993 Dividend and profit receivable 10,581 - 10,581 Security deposits 2,600 - 2,600

1,353,617 3,163,993 4,517,610

As at 30 June 2015

Liabilities at fair value through profit or loss

At amortised cost Total

------------ (Rupees in '000) ------------LiabilitiesPayable to National Investment Trust

Limited - Management Company - 19,993 19,993 Payable to Central Depository Company

of Pakistan Limited - Trustee - 522 522 Payable against purchase of investments - 127,994 127,994 Payable against redemption of units - 372 372 Accrued expenses and other liabilities - 10,480 10,480

- 159,361 159,361

20 TRANSACTIONS AND BALANCES WITH CONNECTED PERSONS

20.1

20.2

20.3

CATEGORY

Connected persons include National Investment Trust Limited being the Management Company, Central Depository Company ofPakistan Limited being the Trustee, other collective investment schemes managed by the Management Company, any person orcompany beneficially owning directly or indirectly ten percent or more of the capital of the Management Company or the net assetsof the Fund and directors and officers of the Management Company and the Trustee and unit holders holding 10 percent or moreunits of the Fund.

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

Remuneration of the Management Company and the Trustee is determined in accordance with the provisions of the NBFCRegulations and the Trust Deed respectively.

20.4

201520.5 Transactions during the period (Rupees in '000)

National Investment Trust Limited - Management CompanyIssue of 100,224,283 units 1,002,243 Remuneration of the Management Company 15,017 Sindh Sales Tax on management remuneration 2,613

Central Depository Company of Pakistan Limited - TrusteeRemuneration of the Trustee 621 Custodian charges 90

Directors and key management personnelIssue of 585,767 units 5,906 Redemption of 28,736 units 300

20.6 Amounts outstanding as at period end

National Investment Trust Limited - Management Company100,224,283 units held 1,029,303 Management remuneration payable 10,518 Sindh Sales Tax payable 1,830 Preliminary expenses and floatation costs payable 5,000 Others payable 2,645

Central Depository Company of Pakistan Limited - TrusteeTrustee fee payable 432 Custodian charges payable 90

Directors and key management personnelIssue of 557,031 units 5,721

21 FINANCIAL RISK MANAGEMENT

The Fund's activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk.

21.1 Market risk

Market risk comprises of three types of risk: currency risk, interest rate risk and other price risk.

21.2 Currency risk

The details of significant transactions carried out by the Fund with connected persons and balances with them at period end are asfollows:

Market risk is the risk that the fair value or the future cash flows of a financial instrument may fluctuate as a result of changes inmarket prices.

The Management Company manages the market risk through diversification of the investment portfolio by exposures and byfollowing the internal guidelines established by the investment committee and regulations laid down by the Securities andExchange Commission of Pakistan.

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreignexchange rates. The Fund, at present is not exposed to currency risk as its operations are geographically restricted to Pakistanand all transactions are carried out in Pak Rupees.


20.4

201520.5 Transactions during the period (Rupees in '000)

National Investment Trust Limited - Management CompanyIssue of 100,224,283 units 1,002,243 Remuneration of the Management Company 15,017 Sindh Sales Tax on management remuneration 2,613

Central Depository Company of Pakistan Limited - TrusteeRemuneration of the Trustee 621 Custodian charges 90

Directors and key management personnelIssue of 585,767 units 5,906 Redemption of 28,736 units 300

20.6 Amounts outstanding as at period end

National Investment Trust Limited - Management Company100,224,283 units held 1,029,303 Management remuneration payable 10,518 Sindh Sales Tax payable 1,830 Preliminary expenses and floatation costs payable 5,000 Others payable 2,645

Central Depository Company of Pakistan Limited - TrusteeTrustee fee payable 432 Custodian charges payable 90

Directors and key management personnelIssue of 557,031 units 5,721

21 FINANCIAL RISK MANAGEMENT

The Fund's activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk.

21.1 Market risk

Market risk comprises of three types of risk: currency risk, interest rate risk and other price risk.

21.2 Currency risk

The details of significant transactions carried out by the Fund with connected persons and balances with them at period end are asfollows:

Market risk is the risk that the fair value or the future cash flows of a financial instrument may fluctuate as a result of changes inmarket prices.

The Management Company manages the market risk through diversification of the investment portfolio by exposures and byfollowing the internal guidelines established by the investment committee and regulations laid down by the Securities andExchange Commission of Pakistan.

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreignexchange rates. The Fund, at present is not exposed to currency risk as its operations are geographically restricted to Pakistanand all transactions are carried out in Pak Rupees.

21.3 Interest rate risk

a) Sensitivity analysis for variable rate instruments

Presently, the Fund does not hold any variable rate instruments and is not exposed to cash flow interest rate risk.

b) Sensitivity analysis for fixed rate instruments

Presently, the Fund does not hold any fixed rate instruments and is not exposed to cash flow interest rate risk.

On-balance sheet financial instruments

Financial assetsBank balances 3.14 - 6.85 1,340,436 - - - 1,340,436 Investments - - - 3,163,993 3,163,993 Dividend and profit receivable - - - 10,581 10,581 Security deposits - - - 2,600 2,600

1,340,436 - - 3,177,174 4,517,610 Financial liabilities Payable to National Investment Trust

Limited - Management Company - - - 19,993 19,993 Payable to Central Depository Company

of Pakistan Limited - Trustee - - - 522 522 Payable against purchase of investments - - - 127,994 127,994 Payable against redemption of units - - - 372 372 Accrued expenses and other liabilities - - - 10,480 10,480

- - - 159,361 159,361

On-balance sheet gap 1,340,436 - - 3,017,813 4,358,249

Off-balance sheet financial instruments - - - - -

Off-balance sheet gap - - - - -

Total interest rate sensitivity gap 1,340,436 - - 3,017,813 4,358,249

Cumulative interest rate sensitivity gap 1,340,436 1,340,436 1,340,436

21.4 Price risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes inmarket interest rates.

Yield / interest rate sensitivity position for on balance sheet financial instruments is based on the earlier of contractual repricing ormaturity date and for off balance sheet instruments is based on settlement date.

Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in marketprices (other than those arising from interest risk or currency risk) whether those changes are caused by factors specific to theindividual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market.

The Fund is exposed to equity price risk because of investments held by the Fund and classified on the Statement of Assets andLiabilities as 'available for sale'. To manage its price risk arising from investments in equity securities, the Fund diversifies itsportfolio within the eligible stocks prescribed in the Trust Deed. The NBFC Regulations also limit individual equity securities to nomore than 10% of net assets, or issued capital of the investee company and sector exposure limit to 30% of the net assets or indexweight of the security whichever is higher, subject to a maximum of 35% of the net assets.

---------------------------------------------- Rupees in '000----------------------------------------------

As at 30 June 2015

Effective yield / interest rate (%)

Exposed to yield / interest rate riskNot exposed

to yield / interestrate risk

Total Uptothree

months

More than three

monthsand up-toone year

Morethan one

year

CATEGORY


21.3 Interest rate risk

a) Sensitivity analysis for variable rate instruments

Presently, the Fund does not hold any variable rate instruments and is not exposed to cash flow interest rate risk.

b) Sensitivity analysis for fixed rate instruments

Presently, the Fund does not hold any fixed rate instruments and is not exposed to cash flow interest rate risk.

On-balance sheet financial instruments

Financial assetsBank balances 3.14 - 6.85 1,340,436 - - - 1,340,436 Investments - - - 3,163,993 3,163,993 Dividend and profit receivable - - - 10,581 10,581 Security deposits - - - 2,600 2,600

1,340,436 - - 3,177,174 4,517,610 Financial liabilities Payable to National Investment Trust

Limited - Management Company - - - 19,993 19,993 Payable to Central Depository Company

of Pakistan Limited - Trustee - - - 522 522 Payable against purchase of investments - - - 127,994 127,994 Payable against redemption of units - - - 372 372 Accrued expenses and other liabilities - - - 10,480 10,480

- - - 159,361 159,361

On-balance sheet gap 1,340,436 - - 3,017,813 4,358,249

Off-balance sheet financial instruments - - - - -

Off-balance sheet gap - - - - -

Total interest rate sensitivity gap 1,340,436 - - 3,017,813 4,358,249

Cumulative interest rate sensitivity gap 1,340,436 1,340,436 1,340,436

21.4 Price risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes inmarket interest rates.

Yield / interest rate sensitivity position for on balance sheet financial instruments is based on the earlier of contractual repricing ormaturity date and for off balance sheet instruments is based on settlement date.

Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in marketprices (other than those arising from interest risk or currency risk) whether those changes are caused by factors specific to theindividual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market.

The Fund is exposed to equity price risk because of investments held by the Fund and classified on the Statement of Assets andLiabilities as 'available for sale'. To manage its price risk arising from investments in equity securities, the Fund diversifies itsportfolio within the eligible stocks prescribed in the Trust Deed. The NBFC Regulations also limit individual equity securities to nomore than 10% of net assets, or issued capital of the investee company and sector exposure limit to 30% of the net assets or indexweight of the security whichever is higher, subject to a maximum of 35% of the net assets.

---------------------------------------------- Rupees in '000----------------------------------------------

As at 30 June 2015

Effective yield / interest rate (%)

Exposed to yield / interest rate riskNot exposed

to yield / interestrate risk

Total Uptothree

months

More than three

monthsand up-toone year

Morethan one

year

21.5 Credit risk

The analysis below summarises the credit quality of the Fund's financial assets as at 30 June 2015:

Name of the bankBalance as at 30

June 2015Rating agency Published

rating

Percentage of total

bank balances(Rupees in '000)

Habib Bank Limited 337,949 JCR-VIS AAA 25.21 National Bank of Pakistan 177,625 PACRA AAA 13.25 MCB Bank Limited 3 PACRA AAA - Bank Al-Habib Limited 277,947 PACRA AA+ 20.74 Meezan Bank Limited 117,107 JCR-VIS AA+ 8.74 United Bank Limited 72,358 JCR-VIS AA+ 5.40 Sindh Bank Limited 100,005 JCR-VIS AA- 7.46 Askari Bank Limited 50,726 JCR-VIS AA 3.78 Bank Islami Pakistan Limited 206,716 PACRA A+ 15.42

1,340,436 100.00

In case of 5% increase / decrease in KSE 100 index on 30 June 2015, with all other variables held constant, net income for theperiod would not be affected as the Fund does not have any security which is classified at fair value through profit or loss. Othercomponents of equity and net assets of the Fund would increase / (decrease) by Rs. 158.200 million as a result of gains / (losses)on equity securities classified as available for sale.

The analysis is based on the assumption that equity index had increased / decreased by 5% with all other variables held constantand all the Fund's equity instruments moved according to the historical correlation with the index. This represents management'sbest estimate of a reasonable possible shift in the KSE 100 Index, having regard to the historical volatility of the index. Thecomposition of the Fund's investment portfolio and the correlation thereof to the KSE 100 Index, is expected to change over time.Accordingly, the sensitivity analysis prepared as of 30 June 2015 is not necessarily indicative of the effect on the Fund's net assetsof future movements in the level of the KSE 100 Index.

Credit risk represents the risk of a loss if the counter parties fail to perform as contracted. Credit risk arises from deposits withbanks and financial institutions, credit exposure arising as a result of dividends receivable on equity securities and receivableagainst sale of investments. For banks and financial institutions, only reputed parties are accepted. Credit risk on dividendreceivable is minimal due to statutory protection. All transactions in listed securities are settled / paid for upon delivery using theNational Clearing Company of Pakistan Limited. The risk of default is considered minimal due to inherent systematic measurestaken therein.

The Fund's policy is to enter into financial contracts in accordance with the internal risk management policies and investmentguidelines approved by the Investment Committee. The Fund does not expect to incur material credit losses on its financial assets.

The maximum exposure to credit risk before any credit enhancement as at 30 June 2015 is the carrying amount of the financialassets. Investments in equity securities, however, are not exposed to credit risk.


21.5 Credit risk

The analysis below summarises the credit quality of the Fund's financial assets as at 30 June 2015:

Name of the bankBalance as at 30

June 2015Rating agency Published

rating

Percentage of total

bank balances(Rupees in '000)

Habib Bank Limited 337,949 JCR-VIS AAA 25.21 National Bank of Pakistan 177,625 PACRA AAA 13.25 MCB Bank Limited 3 PACRA AAA - Bank Al-Habib Limited 277,947 PACRA AA+ 20.74 Meezan Bank Limited 117,107 JCR-VIS AA+ 8.74 United Bank Limited 72,358 JCR-VIS AA+ 5.40 Sindh Bank Limited 100,005 JCR-VIS AA- 7.46 Askari Bank Limited 50,726 JCR-VIS AA 3.78 Bank Islami Pakistan Limited 206,716 PACRA A+ 15.42

1,340,436 100.00

In case of 5% increase / decrease in KSE 100 index on 30 June 2015, with all other variables held constant, net income for theperiod would not be affected as the Fund does not have any security which is classified at fair value through profit or loss. Othercomponents of equity and net assets of the Fund would increase / (decrease) by Rs. 158.200 million as a result of gains / (losses)on equity securities classified as available for sale.

The analysis is based on the assumption that equity index had increased / decreased by 5% with all other variables held constantand all the Fund's equity instruments moved according to the historical correlation with the index. This represents management'sbest estimate of a reasonable possible shift in the KSE 100 Index, having regard to the historical volatility of the index. Thecomposition of the Fund's investment portfolio and the correlation thereof to the KSE 100 Index, is expected to change over time.Accordingly, the sensitivity analysis prepared as of 30 June 2015 is not necessarily indicative of the effect on the Fund's net assetsof future movements in the level of the KSE 100 Index.

Credit risk represents the risk of a loss if the counter parties fail to perform as contracted. Credit risk arises from deposits withbanks and financial institutions, credit exposure arising as a result of dividends receivable on equity securities and receivableagainst sale of investments. For banks and financial institutions, only reputed parties are accepted. Credit risk on dividendreceivable is minimal due to statutory protection. All transactions in listed securities are settled / paid for upon delivery using theNational Clearing Company of Pakistan Limited. The risk of default is considered minimal due to inherent systematic measurestaken therein.

The Fund's policy is to enter into financial contracts in accordance with the internal risk management policies and investmentguidelines approved by the Investment Committee. The Fund does not expect to incur material credit losses on its financial assets.

The maximum exposure to credit risk before any credit enhancement as at 30 June 2015 is the carrying amount of the financialassets. Investments in equity securities, however, are not exposed to credit risk.

Concentration of credit risk

21.6 Liquidity risk

Financial liabilities Payable to National Investment Trust

Limited - Management Company 19,993 12,348 - 7,645 Payable to Central Depository Company of

Pakistan Limited - Trustee 522 522 - - Payable against purchase of investments 127,994 127,994 - - Payable against redemption of units 372 372 - - Accrued expenses and other liabilities 10,480 10,480 - -

159,361 151,716 - 7,645

Unitholders' Fund 4,362,492 4,362,492 - -

The table below analyses the Fund's financial liabilities into relevant maturity groupings based on the remaining period at thepeirod end date to the contractual maturity date. The amounts in the table are the contractual undiscounted cash flows:

Concentration of credit risk exists when changes in economic or industry factors similarly affect groups of counterparties whoseaggregate credit exposure is significant in relation to the Fund's total credit exposure. The Fund's portfolio of financial instrumentsis mostly concentrated in equity securities.

Liquidity risk is the risk that the Fund may not be able to generate sufficient cash resources to settle its obligations in full as theyfall due or can only do so on terms that are materially disadvantageous.

The Fund is exposed to the daily settlement of equity securities and to daily cash redemptions, if any. The Fund's approach tomanaging liquidity is to ensure, as far as possible, that the Fund will always have sufficient liquidity to meet its liabilities when dueunder both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Fund's reputation. Itspolicy is therefore to invest the majority of its assets in investments that are traded in an active market and can be readily disposedoff. The Fund’s listed securities are considered readily realisable, as they are listed on the Karachi Stock Exchange.

The Fund has the ability to borrow in the short term to ensure settlement. The maximum amount available to the Fund from theborrowing would be limited to fifteen percent of the net assets upto 90 days and would be secured by the assets of the Fund. Thefacility would bear interest at commercial rates.

In order to manage the Fund's overall liquidity, the Fund may also withhold daily redemption requests in excess of ten percent ofthe units in issue and such requests would be treated as redemption requests qualifying for being processed on the next businessday. Such procedure would continue until the outstanding redemption requests come down to a level below ten percent of the unitsthen in issue. The Fund did not withhold any redemption requests during the period.

------------------------------------------ (Rupees in '000) ------------------------------------------

As at 30 June 2015

Total Upto three months

Over three months and

upto one yearOver one year


Concentration of credit risk

21.6 Liquidity risk

Financial liabilities Payable to National Investment Trust

Limited - Management Company 19,993 12,348 - 7,645 Payable to Central Depository Company of

Pakistan Limited - Trustee 522 522 - - Payable against purchase of investments 127,994 127,994 - - Payable against redemption of units 372 372 - - Accrued expenses and other liabilities 10,480 10,480 - -

159,361 151,716 - 7,645

Unitholders' Fund 4,362,492 4,362,492 - -

The table below analyses the Fund's financial liabilities into relevant maturity groupings based on the remaining period at thepeirod end date to the contractual maturity date. The amounts in the table are the contractual undiscounted cash flows:

Concentration of credit risk exists when changes in economic or industry factors similarly affect groups of counterparties whoseaggregate credit exposure is significant in relation to the Fund's total credit exposure. The Fund's portfolio of financial instrumentsis mostly concentrated in equity securities.

Liquidity risk is the risk that the Fund may not be able to generate sufficient cash resources to settle its obligations in full as theyfall due or can only do so on terms that are materially disadvantageous.

The Fund is exposed to the daily settlement of equity securities and to daily cash redemptions, if any. The Fund's approach tomanaging liquidity is to ensure, as far as possible, that the Fund will always have sufficient liquidity to meet its liabilities when dueunder both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Fund's reputation. Itspolicy is therefore to invest the majority of its assets in investments that are traded in an active market and can be readily disposedoff. The Fund’s listed securities are considered readily realisable, as they are listed on the Karachi Stock Exchange.

The Fund has the ability to borrow in the short term to ensure settlement. The maximum amount available to the Fund from theborrowing would be limited to fifteen percent of the net assets upto 90 days and would be secured by the assets of the Fund. Thefacility would bear interest at commercial rates.

In order to manage the Fund's overall liquidity, the Fund may also withhold daily redemption requests in excess of ten percent ofthe units in issue and such requests would be treated as redemption requests qualifying for being processed on the next businessday. Such procedure would continue until the outstanding redemption requests come down to a level below ten percent of the unitsthen in issue. The Fund did not withhold any redemption requests during the period.

------------------------------------------ (Rupees in '000) ------------------------------------------

As at 30 June 2015

Total Upto three months

Over three months and

upto one yearOver one year

22 UNIT HOLDERS' FUND RISK MANAGEMENT

The Fund has no restriction on the subscription and redemption of units.

23 FAIR VALUE OF FINANCIAL INSTRUMENTS

- quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1)

-

- inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level 3)

Investments of the Fund carried at fair value are categorised as level 1.

24 TRANSACTIONS WITH TOP TEN BROKERS / DEALERS

List of top ten brokers by percentage of commission paid for the period ended 30 June 2015:

Particulars Percentage

Arif Habib Limited 4.75 AKD Securities Limited 4.16 JS Global Capital Limited 4.12 Cassim Investment (Private) Limited 3.45 Invest & Finance Securities Limited 3.28 Concordia Securities (Private) Limited 3.25 Amin Tai Securities (Private) Limited 3.24 Habib Metro Financial Services Limited 3.20 BMA Capital Management Limited 3.18 Al-Habib Capital Markets (Private) Limited 3.15

The unit holders' fund is represented by redeemable units. They are entitled to dividends and to payment of a proportionate sharebased on the Fund's net assets value per unit on the redemption date. The relevant movements are shown on the "Statement ofMovement in Unit Holders' Fund".

The Fund's objectives when managing unit holders' funds are to safeguard its ability to continue as a going concern so that it cancontinue to provide returns for unit holders and to maintain a strong base of assets to meet unexpected losses or opportunities.

In accordance with the risk management policies as stated in note 21, the Fund endeavours to invest the subscriptions received inappropriate investments while maintaining sufficient liquidity to meet redemption requests, such liquidity being augmented by short-term borrowings or disposal of investments where necessary.

As required under the NBFC Regulations, every open end scheme shall maintain minimum fund size (i.e. net assets of the Fund)of Rs. 100 million at all times during the life of scheme. The Fund has maintained and complied with the requirements of minimumfund size during the period.

Fair value is the amount for which an asset could be exchanged, or liability settled, between knowledgeable willing parties in anarm's length transaction. Consequently, differences can arise between carrying values and the fair value estimates.

Underlying the definition of fair value is the presumption that the Fund is a going concern without any intention or requirement tocurtail materially the scale of its operations or to undertake a transaction on adverse terms.

Financial assets which are tradable in an open market are revalued at the market prices prevailing at the close of trading on theperiod end date. The estimated fair value of all other financial assets and liabilities is considered not significantly different frombook values as the items are either short term in nature or periodically repriced.

IFRS 7 requires the Fund to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputsused in making the measurements. The fair value hierarchy has the following levels:

inputs other than quoted prices included within level 1 that are observable for the asset or liability, whether directly (i.e. asprices) or indirectly (i.e. derived from prices) (level 2) ; and


22 UNIT HOLDERS' FUND RISK MANAGEMENT

The Fund has no restriction on the subscription and redemption of units.

23 FAIR VALUE OF FINANCIAL INSTRUMENTS

- quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1)

-

- inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level 3)

Investments of the Fund carried at fair value are categorised as level 1.

24 TRANSACTIONS WITH TOP TEN BROKERS / DEALERS

List of top ten brokers by percentage of commission paid for the period ended 30 June 2015:

Particulars Percentage

Arif Habib Limited 4.75 AKD Securities Limited 4.16 JS Global Capital Limited 4.12 Cassim Investment (Private) Limited 3.45 Invest & Finance Securities Limited 3.28 Concordia Securities (Private) Limited 3.25 Amin Tai Securities (Private) Limited 3.24 Habib Metro Financial Services Limited 3.20 BMA Capital Management Limited 3.18 Al-Habib Capital Markets (Private) Limited 3.15

The unit holders' fund is represented by redeemable units. They are entitled to dividends and to payment of a proportionate sharebased on the Fund's net assets value per unit on the redemption date. The relevant movements are shown on the "Statement ofMovement in Unit Holders' Fund".

The Fund's objectives when managing unit holders' funds are to safeguard its ability to continue as a going concern so that it cancontinue to provide returns for unit holders and to maintain a strong base of assets to meet unexpected losses or opportunities.

In accordance with the risk management policies as stated in note 21, the Fund endeavours to invest the subscriptions received inappropriate investments while maintaining sufficient liquidity to meet redemption requests, such liquidity being augmented by short-term borrowings or disposal of investments where necessary.

As required under the NBFC Regulations, every open end scheme shall maintain minimum fund size (i.e. net assets of the Fund)of Rs. 100 million at all times during the life of scheme. The Fund has maintained and complied with the requirements of minimumfund size during the period.

Fair value is the amount for which an asset could be exchanged, or liability settled, between knowledgeable willing parties in anarm's length transaction. Consequently, differences can arise between carrying values and the fair value estimates.

Underlying the definition of fair value is the presumption that the Fund is a going concern without any intention or requirement tocurtail materially the scale of its operations or to undertake a transaction on adverse terms.

Financial assets which are tradable in an open market are revalued at the market prices prevailing at the close of trading on theperiod end date. The estimated fair value of all other financial assets and liabilities is considered not significantly different frombook values as the items are either short term in nature or periodically repriced.

IFRS 7 requires the Fund to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputsused in making the measurements. The fair value hierarchy has the following levels:

inputs other than quoted prices included within level 1 that are observable for the asset or liability, whether directly (i.e. asprices) or indirectly (i.e. derived from prices) (level 2) ; and

25 PARTICULARS OF INVESTMENT COMMITTEE AND FUND MANAGER

Details of members of the investment committee of the Fund are as follows:

S.No Name Experience in years

1 Mr. Shahid Ghaffar MBA 382 Mr. Manzoor Ahmed

26

3 Mr. Shahid Anwar 384 Mr. S. Zubair Ahmed

42

5 Mr. Aamir Amin CA 186 Mr. M. Imran Rafiq MBA and CFA 127 Mr. Syed Raza Abbas Jaffery MBA 188 Mr. Ammar Habib MS & FRM 59 Mr. Syed Aqib Hussain MBA 310 Mr. Waseem Akram MBA 11

* Mr. Wasim Akram is also managing NIT Islamic Pension Fund and NIT Pension Fund.

26 ATTENDANCE AT MEETINGS OF BOARD OF DIRECTORS

1 Mr. Shahid Ghaffar 8 8 -2 Mr. Nusrat-ud-Din 8 8 -3 Mr. Syed Ahmed Iqbal Ashraf 7 7 14 Mr. Jamal Nasim 8 8 -5 Mr. Muhtashim Ahmed Ashai 7 7 1

* 6(a) Mr. Ali Sameer Farooqui 7 7 1* 6(b) Mr. Muhammad Hanif Akhai 2 2 -

7 Mr. Shahzad F. Lodhi 8 8 -8 Mr. Aman Aziz Siddiqui 6 6 29 Mr. Yameen Kerai 8 8 -10 Mr. Iqbal Adamjee 7 7 111 Mr. Rana Assad Amin 6 6 2

*

27 PATTERN OF UNIT HOLDING

CategoryNumberof unit holders

Investment amount

(Rupees in '000)

Individuals 3,010 1,396,823 Associated Companies / Directors 2 1,541 Insurance Companies 5 273,182 Banks / Development Financial Institutions 9 678,847 Non-Banking Financial Institutions 1 1,029,259 Retirements Funds 37 798,698 Public Limited Companies 3 77,539 Others 26 106,603

3,093 4,362,492

28 DATE OF AUTHORISATION FOR ISSUE

These financial statements were authorised for issue on _____________ by the Board of Directors of the Management Company.

29 GENERAL

Figures have been rounded off to the nearest thousand rupees unless otherwise specified.

As at 30 June 2015

Mr. Ali Sameer Farooqui, nominee director of United Bank Limited resigned w.e.f 19 February 2015 and Mr. MuhammadHanif Akhai was appointed in his place w.e.f 16 April 2015.

312th BOD

Percentageof total

investment

314th and 316th BOD

Designation Qualification

Chief Operating Officer / Head of Asset ManagementMBA, DAIBP &

Candidate for CFA Level III

Head of MD's Secretariat and Personnel MBA & DAIBP

Chief Executive Officer / Managing Director

M.Phill, MBA, PGD-General

Management & PGD-Development

PoliciesHead of Finance

Held during tenor of

directorship

Controller of Branches / Company Secretary

Head of Trading

Fund Manager

The 309th, 310th, 311th, 312th, 313th, 314th, 315th and 316th Board meetings were held on 08 July 2014, 04 September 2014, 09September 2014, 22 October 2014, 22 January 2015, 19 February 2015, 16 April 2015 and 24 June 2015 respectively. Informationin respect of attendance by the Directors in the meetings is given below:

Number of meetings

Head of Research

314th BOD

312th BOD309th BOD

314th and 316th BOD

Manager/In-charge ComplianceManager/In-charge Risk Management

--- (%) ---

100.00 2.44

18.31 1.78

32.02 0.04 6.26 15.56 23.59

S.No Name of Director Attended Leave granted

Meetings not attended





26


42







*



Investment amount

(Rupees in '000)


3,093 4,362,492



29 GENERAL


As at 30 June 2015


312th BOD

Percentageof total

investment

314th and 316th BOD










directorship


Head of Trading

Fund Manager


Number of meetings

Head of Research

314th BOD

312th BOD309th BOD

314th and 316th BOD


--- (%) ---

100.00 2.44

18.31 1.78

32.02 0.04 6.26 15.56 23.59








26


42







*



Investment amount

(Rupees in '000)


3,093 4,362,492



29 GENERAL


As at 30 June 2015


312th BOD

Percentageof total

investment

314th and 316th BOD










directorship


Head of Trading

Fund Manager


Number of meetings

Head of Research

314th BOD

312th BOD309th BOD

314th and 316th BOD


--- (%) ---

100.00 2.44

18.31 1.78

32.02 0.04 6.26 15.56 23.59





30 September 2015


These financial statements were authorised for issue on 30 September 2015 by the Board of Directors of the Management Company.

the objective of the fund is to provide investors with long ... report sept 2015...2014-2015 lucky...

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