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ASKARI EQUITY FUND
CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES
AS AT MARCH 31, 2012
UNAUDITED
Note March 31, 2012
---(Rupees)---
ASSETS
Bank balances 5 100,845,932
Advances, deposits and prepayments 3,475,253
Unamortised formation costs 998,907Total assets 105,320,092
LIABILITIES
Payable to Askari Investment Management Limited - Management Company 3,659,017
Payable to Central Depository Company of Pakistan Limited - Trustee 3,825
Annual fee payable to Securities and Exchange Commission of Pakistan 519
Accrued expenses and other liabilities 1,632,545
Total liabilities 5,295,906
NET ASSETS 100,024,186
Unit holders' fund (as per statement attached) 100,024,186
Contingencies and commitments
Number of units in issue 1,000,000
Net asset value per unit 100.0242
The annexed notes 1 to 12 form an integral part of these financial statements.
(Management Company)
Chief Executive Director
(Number of units)
------(Rupees)------
For Askari Investment Management Limited
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ASKARI EQUITY FUND
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)
FOR THE PERIOD FROM FEBRUARY 1, 2012 TO MARCH 31, 2012
---(Rupees)---
Net income for the period after taxation 24,186
Other comprehensive income -
Total comprehensive income for the period 24,186
The annexed notes 1 to 12 form an integral part of these financial statements.
Chief Executive Director
For the period
from February 1,
2012 to March
31, 2012
For Askari Investment Management Limited
(Management Company)
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ASKARI EQUITY FUND
CONDENSED INTERIM DISTRIBUTION STATEMENT (UN-AUDITED)
FOR THE PERIOD FROM FEBRUARY 1, 2012 TO MARCH 31, 2012
---(Rupees)---
Undistributed income brought forward:
Realised income -
Unrealised income -
-
Net income for the period 24,186
Undistributed income carried forward 24,186
Undistributed income carried forward:
Realised income 24,186
Unrealised income -
24,186
The annexed notes 1 to 12 form an integral part of these financial statements.
(Management Company)
Chief Executive Director
For Askari Investment Management Limited
For the period
from February 1,
2012 to March
31, 2012
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ASKARI EQUITY FUND
CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS FUND (UN-AUDITED)
FOR THE PERIOD FROM FEBRUARY 1, 2012 TO MARCH 31, 2012
---(Rupees)---
Net assets at the beginning of the period -
100,000,000
100,000,000
Net income for the period 24,186
Other comprehensive income -
24,186
Net assets at the end of the period 100,024,186
The annexed notes 1 to 12 form an integral part of these financial statements.
(Management Company)
Chief Executive Director
Issue of 1,000,000 units
For Askari Investment Management Limited
For the period
from February 1,
2012 to March
31, 2012
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ASKARI EQUITY FUND
CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED)
FOR THE PERIOD FROM FEBRUARY 1, 2012 TO MARCH 31, 2012
---(Rupees)---
CASH FLOWS FROM OPERATING ACTIVITIES
Net income income for the period 24,186
Adjustments for:
Amortisation of formation costs 1,093
1,093
25,279
(Increase) / decrease in assets
Advances, deposits and prepayments (3,475,253)
Formation Cost (1,000,000)
(4,475,253)
Increase / (decrease) in liabilities
Payable to Askari Investment Management Limited
- Management Company 3,659,017
Payable to Central Depository Company of Pakistan Limited - Trustee 3,825
Annual fee payable to Securities and Exchange Commission of Pakistan 519
Accrued expenses and other liabilities 1,632,5455,295,906
Net cash inflow from operating activities 845,932
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of units 100,000,000
Net cash inflow on financing activities 100,000,000
Net increase in cash and cash equivalents during the period 100,845,932
Cash and cash equivalents at the beginning of the period -
Cash and cash equivalents at the end of the period 100,845,932
The annexed notes 1 to 12 form an integral part of these financial statements.
(Management Company)
Chief Executive Director
For Askari Investment Management Limited
For the period
from February 1,
2012 to March
31, 2012
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ASKARI EQUITY FUND
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION (UN-AUDITED)
FOR THE PERIOD FROM FEBRUARY 1, 2012 TO MARCH 31, 2012
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 CDC as trustree of the Fund.
2 BASIS OF PRESENTATION
2.1 Statement of compliance
2.2 Basis of measurement
This condensed interim financial information has been prepared under the historical cost convention.
2.3 Functional and presentation currency
2.4 Critical accounting estimates and judgments
3 SIGNIFICANT ACCOUNTING POLICIES
The accounting policies applied in the preparation of this condensed interim financial information are set out below:
Askari Equity Fund (the Fund) was established under the Non Banking Finance Companies (Establishment and Regulation) Rules, 2003
(the NBFC Rules). It was registered under a Trust deed executed between Askari Investment Management Limited (a wholly owned
subsidiary of Askari Bank Limited) as the Management Company and the Central Depository Company of Pakistan Limited (CDC) as the
Trustee on November 17, 2011. The Fund was registered as a Notiifed Entity under the Non Banking Finance Companies Regulations,
2008 (NBFC Regulations) on December 19, 2011. The units of the Fund were initially issued at Rs. 100 per unit.
The Pakistan Credit Rating Agency Limited (PACRA) has assigned an asset manager rating of 'AM3+' to the Management Company in
July 2011. As per the rating scale of PACRA, this rating denotes that the asset manager meets high investment industry standards and
benchmarks.
The fund is an equity fund, which primarily invests in shares of listed companies
The Management Company of the Fund has been licensed to act as an Asset Management Company under the NBFC Rules through a
certificate of registration issued by the SECP. The registered office of the Management Company is situated at Suite No. 502, 5thFloor,Green Trust Tower, Blue Area, Jinnah Avenue, Islamabad with its Head Office situated at Mezzanine floor, Bahria Complex III, M.T.Khan
Road, Karachi.
The Fund is an open ended mutual fund. Units are offered for public subscription on a continuous basis. The units are transferable and
can be redeemed by surrendering them to the Fund.
This condensed interim financial information has been prepared in accordance with the approved accounting standards as applicable inPakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the
International Accounting Standards Board as are notified under the Companies Ordinance, 1984, the requirements of the Trust Deed, the
NBFC Rules, the NBFC Regulations and directives issued by the SECP. Wherever, the requirements of the Trust Deed, the NBFC
Rules, the NBFC Regulations and the said directives differ with the requirements of these standards, the requirements of the Trust Deed,
the NBFC Rules, the NBFC Regulations and the said directives shall prevail.
The disclosures made in this condensed interim financial information has, however, been limited based on the requirements of the
International Accounting Standard 34: 'Interim Financial Reporting'. This condensed interim financial information is unaudited.
This condensed interim financial information is presented in Pak Rupees which is the functional and presentation currency of the Fund
and rounded to the nearest thousand rupees.
The preparation of this condensed interim financial information in conformity with approved accounting standards as applicable in
Pakistan requires management to make judgments, estimates and assumptions that affect the application of policies and reported
amount of assets and 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 result of which form the basis of making the
judgements about the carrying values of assets and liabilities which are not readily apparent from other sources. Actual results may differ
from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of its revision and
future periods if the revision affects both current and future periods.
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3.1 Financial instruments
The Fund classifies its financial instruments in the following categories:
a) Financial instruments at fair value through profit or loss
b) Available-for-sale
c) Loans and receivables
d) Financial liabilities
Recognition
Measurement
Fair value measurement principles
Impairment
Financial liabilities, other than those at fair value through profit or loss, are measured at amortised cost using the effective yield method.
Available for sale financial assets are non-derivatives that are either designated in this category or not classified in any other category.
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market,
other than those classified by the Fund as fair value through profit or loss or available for sale and are carried at amortised cost using
effective yield method, less impairment losses, if any.
Financial assets are initially recognised at fair value plus transaction costs except for financial assets carried at fair value through profit or
loss. Financial assets carried at fair value through profit or loss are initially recognised at fair value and transaction costs are expensed in
the Income Statement.
Subsequent to initial recognition, financial instruments classified as at 'fair value through profit or loss' and available for sale' are
measured at fair value. Gains or losses arising, from changes in the fair value of the financial assets 'at fair value through profit or loss'
are recognised in the Income Statement.
An instrument is classified at fair value through profit or loss if it is held-for-trading or is designated as such upon initial recognition.
Financial instruments are designated at fair value through profit or loss if the Fund manages such investments and makes purchase and
sale decisions based on their fair value in accordance with the Fund's documented risk management or investment strategy. Financial
assets which are acquired principally for the purpose of generating profit from short term price fluctuation or are part of the portfolio in
whichthere is recent actual pattern of short term profit taking areclassified as held for trading or a derivative. Financial instruments at fair
value through profit or loss are measured at fair value, and changes there in arerecognised in Income Statement. All derivatives in a net
receivable position (positive fair value), are reported as financial assets held for trading. All derivative in a net payable position (negative
fair value), are reported as financial liabilities held for trading.
The Fund recognises financial assets and financial l iabil it ies on the date it becomes a party to the contractual provisions of the
instrument. Financial liabilities are not recognised unless one of the parties has performed its part of the contract or the contract is a
derivative contract.
Changes in the fair value of financial instruments classified as 'avai lable-for-sale' are recognised in Unit Holders' Funds until
derecognised or impaired, when the accumulated adjustments recognised in Unit Holders' Funds are included in the Income Statement.
Government securities are stated at fair value.
The investment of the Fund in equity securities is valued on the basis of quoted market prices available at the stock exchange. The
investment of the Fund in government securities is valued on the basis of rates announced by the Financial Markets Association of
Pakistan.
The carrying value of the Fund's assets are reviewed at each period end 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 carrying amount of an asset exceeds its recoverable amount. Impairment losses are recognised in the Income Statement.
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Derecognition
Offsetting of financial instruments
3.2 Unit holders' Fund
3.3 Issue and redemption of units
3.4 Element of income / (loss) and capital gains / (losses) included in prices of units sold less those in units repurchased
3.5 Provisions
3.6 Preliminary expenses and floatation cost
3.7 Net asset value per unit
3.8 Taxation
3.9
The Fund records the net element of accrued income / (loss) and realised capital gains / (losses) relating to units issued and redeemed
during an accounting period in the Income Statement, while the portion of the element of income / (loss) and capital gains / (losses) that
relates to unrealised gains / (losses) held by the Fund in unit holders' fund is recorded in a separate reserve account and any amount
remaining in this reserve account at the end of accounting period (whether gain or loss) is included in the amount available for distribution
to the unit holders.
A provision is recognised inthe balance sheet when the Fund has a legal or constructive obligation as a result of past event, it is probable
that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount of
the obligation can be made. Provisions are regularly reviewed and adjusted to reflect the current best estimate.
Preliminary expenses and floatation costs represents expenditure incurred prior to the commencement of operations of the Fund. Thesecosts shall be amortised over the period of five years commencing from March 30, 2012.
The Fund is exempt from taxation under clause 99 of the Part I of the 2nd Schedule of the Income Tax Ordinance, 2001, subject to the
condition that not less than 90% of its accounting income excluding realised and unrealised capital gains for the year is distributed
amongst the Fund's unit holders. The Fund has not recorded provision for taxation as the management company intends to distribute the
required minimum percentage of the Fund's accounting income for the current period as reduced by capital gains (whether realised or
unrealised) to its unit holders.
The net asset value (NAV) per unit, as disclosed onthe condensed interim statement of assets and liabilities, is calculatedby dividing the
net assets of the Fund by the number of units in issue at the period end.
The Fund derecognises a financial asset when the contractual right to the cash flows from the financial asset expires or it transfers the
financial asset and the transfer qualifies for derecgonitionin accordance with International Accounting Standard 39: Financial Instruments:
Recognition and Measurement. A financial liability is derecognised when the obligation specified in the contract is discharged, cancelled
or expired.
Financial assets and liabilities are offset and the net amount reported in the Statement of Assets and Liabilities when there is a legally
enforceable right to set off the recognised amounts and there is an intention to settle on a net basis, or to realise the assets and settlethe
liabilities simultaneously.
Unit holders' Fund represents the units issued by the Fund, carried at the redemption amount representing the investors' right to a
residual interest in the Fund assets.
Units issued are recorded at the offer price determined by the Management Company for the application received by the distributors
during business hours on that date. The offer price represents the net assets value per units as of the close of business day plus the
allowable front end load, provision for transaction cost and any provision for duties and charges, if applicable. The front-end load is
payable to the investment facilitator, distributors and the Management Company.
Units redeemed will be recorded at the redemption price applicable to units for which the distributors receive redemption requests during
the business hours of that day. The redemption price represents the net asset value per unit as of the close of the business day less any
back-end load, any duties, taxes, charges on redemption and any provision for transaction costs, if applicable.
An equalisation account called the 'element of income / (loss) and capital gains / (losses) included in prices of units issued less those in
units redeemed' is created, in order to prevent the dilution of per unit of income and distr ibution of income already paid out on
redemption.
The Scheme is also exempt from the provisions of section 113 (minimum tax) under clause 11A of Part IV of the Second Schedule to the
Income Tax Ordinance, 2001.
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Unaudited
10.1 Transactions during the period: ---(Rupees)---
Askari Investment Management Limited
- Management CompanyRemuneration of the Management Company 16,394
Sindh sales tax on re muneration of the Management
Company 2,623
Central Depository Company Limited - TrusteeRemuneration of the Trustee 3,825
Askari Bank Limited (Holding company of the Management Company)Investment during the period 1,000,000 units 100,000,000
Profit on bank deposits 56,468
Bank charges 300
(Unaudited)
10.2 Amounts outstanding as at period end March 31, 2012
---(Rupees)---
Askari Investment Management Limited
- Management CompanyManagement fee payable 16,394
Sindh sales tax payable on remuneration of Management Company 2,623
Formation cost 1,000,000
Deposits 2,600,000
Other payable 40,000
Central Depository Company Limited - TrusteeTrustee fee payable 3,825
Askari Bank Limited (Holding company of the Management Company)Investment held in the fund 1,000,000 units 100,024,186
Balance with bank 100,835,932
Profit receivable 875,253
Markup payable on core investment 1,625,017
11 GENERAL
11.1 Figures have been rounded off to the nearest rupee.
12 DATE OF AUTHORISATION FOR ISSUE
Chief Executive Director
For Askari Investment Management Limited
(Management Company)
These financial statements were authorised for issue on April 18, 2012 by the Board of Directors of the Management Company.
For the period
from February 1,
2012 to March
31, 2012
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ASKARI SOVEREIGN YIELD ENCHANCER FUND
CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES
AS AT MARCH 31, 2012
UNAUDITED
Note March 31, 2012
---(Rupees)---
ASSETS
Bank balances 4 100,845,932
Advances, deposits and prepayments 1,175,253
Unamortised formation costs 1,245,000Total assets 103,266,185
LIABILITIES
Payable to Askari Investment Management Limited - Management Company 1,585,000
Other liabilities 1,681,185
Total liabilities 3,266,185
NET ASSETS 100,000,000
Contingencies and commitments 5
Number of units in issue 1,000,000
Net asset value per unit 100.0000
The annexed notes 1 to 10 form an integral part of these financial statements.
(Management Company)
Chief Executive Director
(Number of units)
------(Rupees)------
For Askari Investment Management Limited
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ASKARI SOVEREIGN YIELD ENCHANCER FUND
CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED)
FOR THE PERIOD FROM FEBRUARY 1, 2012 TO MARCH 31, 2012
---(Rupees)---
CASH FLOWS FROM OPERATING ACTIVITIES
Net income income for the period -
Adjustments for:
Amortisation of formation costs -
-
-
(Increase) / decrease in assets
Advances, deposits and prepayments (1,175,253)
Formation Cost (1,245,000)
(2,420,253)
Increase / (decrease) in liabilities
Payable to Askari Investment Management Limited
- Management Company 1,585,000
Accrued expenses and other liabilities 1,681,185
3,266,185
Net cash inflow from operating activities 845,932
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of units 100,000,000
Net cash inflow on financing activities 100,000,000
Net increase in cash and cash equivalents during the period 100,845,932
Cash and cash equivalents at the beginning of the period -
Cash and cash equivalents at the end of the period 100,845,932
The annexed notes 1 to 10 form an integral part of these financial statements.
(Management Company)
Chief Executive Director
For Askari Investment Management Limited
For the period
from February 1,
2012 to March
31, 2012
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ASKARI SOVEREIGN YIELD ENCHANCER FUND
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION (UN-AUDITED)
FOR THE PERIOD FROM FEBRUARY 1, 2012 TO MARCH 31, 2012
1 LEGAL STATUS AND NATURE OF BUSINESS
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8 Title to the assets of the Fund are held in the name of CDC as trustree of the Fund.
2 BASIS OF PRESENTATION
2.1 Statement of compliance
2.2 Basis of measurement
This condensed interim financial information has been prepared under the historical cost convention.
2.3 Functional and presentation currency
2.4 Critical accounting estimates and judgments
3 SIGNIFICANT ACCOUNTING POLICIES
The accounting policies applied in the preparation of this condensed interim financial information are set out below:
Askari Sovereign Yield Enhancer Fund (the Fund) was established under the Non Banking Finance Companies (Establishment and
Regulation) Rules, 2003 (the NBFC Rules). It was registered under a Trust deed executed between Askari Investment Management
Limited (a wholly owned subsidiary of Askari Bank Limited) as the Management Company and the Central Depository Company of
Pakistan Limited (CDC) as the Trustee on December 09, 2011. The Fund was registered as a Notiifed Entity under the Non Banking
Finance Companies Regulations, 2008 (NBFC Regulations) on December 23, 2011. The units of the Fund will initially be issued at Rs.
100 per unit.
The Pakistan Credit Rating Agency Limited (PACRA) has assigned an asset manager rating of 'AM3+' to the Management Company in
July 2011. As per the rating scale of PACRA, this rating denotes that the asset manager meets high investment industry standards and
benchmarks.
The objective of the Fund is to generate relatively higher yield than the conventional bank deposits, from a portfolio constituted of credit
worthy sovereign instruments and banking sector fixed income instruments and deposits.
The Management Company of the Fund has been licensed to act as an Asset Management Company under the NBFC Rules through a
certificate of registration issued by the SECP. The registered office of the Management Company is situated at Suite No. 502, 5thFloor,Green Trust Tower, Blue Area, Jinnah Avenue, Islamabad with its Head Office situated at Mezzanine floor, Bahria Complex III, M.T.Khan
Road, Karachi.
The Fund is an open ended mutual fund. Units will be offered for public subscription on a continuous basis. The units will be transferable
and will be redeemed by surrendering them to the Fund.
This condensed interim financial information has been prepared in accordance with the approved accounting standards as applicable in
Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the
International Accounting Standards Board as are notified under the Companies Ordinance, 1984, the requirements of the Trust Deed, the
NBFC Rules, the NBFC Regulations and directives issued by the SECP. Wherever, the requirements of the Trust Deed, the NBFC
Rules, the NBFC Regulations and the said directives differ with the requirements of these standards, the requirements of the Trust Deed,
the NBFC Rules, the NBFC Regulations and the said directives shall prevail.
The disclosures made in this condensed interim financial information has, however, been limited based on the requirements of the
International Accounting Standard 34: 'Interim Financial Reporting'. This condensed interim financial information is unaudited.
The Fund has not commenced operations yet hence there is no item to be reported in Income Statement, Distribution Statement and
Movement in Unit Holdes' Fund. Accordingly, thesestatements have not been prepared in this condensed interim financial information.
Till March 31, 2012, the Fund has received Rs 100 million as core investment .
This condensed interim financial information is presented in Pak Rupees which is the functional and presentation currency of the Fund
and rounded to the nearest thousand rupees.
The preparation of this condensed interim financial information in conformity with approved accounting standards as applicable in
Pakistan requires management to make judgments, estimates and assumptions that affect the application of policies and reported
amount of assets and 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 result of which form the basis of making the
judgements about the carrying values of assets and liabilities which are not readily apparent from other sources. Actual results may differ
from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of its revision and
future periods if the revision affects both current and future periods.
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3.1 Financial instruments
The Fund classifies its financial instruments in the following categories:
a) Financial instruments at fair value through profit or loss
b) Available-for-sale
c) Loans and receivables
d) Financial liabilities
Recognition
Measurement
Fair value measurement principles
Impairment
Financial liabilities, other than those at fair value through profit or loss, will be measured at amortised cost using the effective yield
method.
Available for sale financial assets are non-derivatives that will either be designated in this category or not classified in any other category.
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market,
other than those classified by the Fund as at fair value through profit or loss or available for sale and wiil be carried at amortised cost
using effective yield method, less impairment losses, if any.
Financial assets will initially be recognised at fair value plus transaction costs except for financial assets carried at fair value throughprofit
or loss. Financial assets carried at fair value through profit or loss will initially be recognised at fair value and transaction costs will be
expensed in the Income Statement.
Subsequent to initial recognition, financial instruments classified as at 'fair value through profit or loss' and available for sale' will be
measured at fair value. Gains or losses arising from changes in the fair value of the financial assets 'at fair value through profit or loss'
will be recognised in the Income Statement.
An instrument will be classified at fair value through profit or loss if it is held-for-trading or is designated as such upon initial recognition.
Financial instruments will be designated at fair value through profit or loss if the Fund manages such investments and makes purchase
and sale decisions based on their fair value in accordance with the Fund's documented risk management or investment strategy.
Financial assets which will be acquired principally for the purpose of generating profit from short term price fluctuation or are part of the
portfolio in which there is recent actual pattern of short term profit taking will be classified as held for trading or a derivative. Financial
instruments at fair value through profit or loss wil l be measured at fair value, and changes there in wil l be recognised in Income
Statement. All derivatives in a net receivable position (positive fair value), will be reported as financial assets held for trading. All
derivative in a net payable position (negative fair value), will be reported as financial liabilities held for trading.
The Fund will recognise financial assets and financial liabilities on the date it will become a party to the contractual provisions of the
instrument. Financial liabilities will not be recognised unless one of the parties has performed its part of the contract or the contract is a
derivative contract.
Changes in the fair value of financial instruments classified as 'available-for-sale' will be recognised in Unit Holders' Funds until
derecognised or impaired, when the accumulated adjustments recognised in Unit Holders' Funds will be included in the Income
Statement. Government securities will be stated at fair value.
The investment of the Fund in equity securities will be valued on the basis of quoted market prices available at the stock exchange. The
investment of the Fund in government securities will be valued on the basis of rates announced by the Financial Markets Association of
Pakistan.
The carrying value of the Fund's assets will be reviewed at each period end reporting date to determine whether there is any indication of
impairment. If such an indication exists, the recoverable amount of such asset will be estimated. An impairment loss will be recognised
whenever the carrying amount of an asset exceeds its recoverable amount. Impairment losses will be recognised in the Income
Statement.
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Derecognition
Offsetting of financial instruments
3.2 Unit holders' Fund
3.3 Issue and redemption of units
3.4 Element of income / (loss) and capital gains / (losses) included in prices of units sold less those in units repurchased
3.5 Provisions
3.6 Preliminary expenses and floatation cost
3.7 Net asset value per unit
3.8 Taxation
3.9
The Fund wil l record the net element of accrued income / (loss) and real ised capital gains / (losses) relating to units issued and
redeemed during an accounting period in the Income Statement, while the portion of the element of income / (loss) and capital gains /
(losses) that relates to unrealised gains / (losses) held by the Fund in unit holders' fund shall be recorded in a separate reserve account
and any amount remaining in this reserve account at the end of accounting period (whether gain or loss) will be included in the amount
available for distribution to the unit holders.
A provision will be recognised in the balance sheet when the Fund will have a legal or constructive obligation as a result of past event, it
will be probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate
of the amount of the obligation can be made. Provisions will be regularly reviewed and adjusted to reflect the current best estimate.
Preliminary expenses and floatation costs represents expenditure incurred prior to the commencement of operations of the Fund. These
costs shall be amortised over the period of five years commencing from the date the fund becomes open for subscription.
The Fund will be exempt from taxation under clause 99 of the Part I of the 2nd Schedule of the Income Tax Ordinance, 2001, subject to
the condition that not less than 90% of its accounting income excluding realised and unrealised capital gains for the year is distributed
amongst the Fund's unit holders.
The net asset value (NAV) per unit, as disclosed on the condensed interim statement of assets and liabilities, will be calculated by
dividing the net assets of the Fund by the number of units in issue at the period end.
The Fund will derecognise a financial asset when the contractual right to the cash flows from the financial asset expires or it transfers the
financial asset and the transfer qualifies for derecgonitionin accordance with International Accounting Standard 39: Financial Instruments:
Recognition and Measurement. A financial liability will be derecognised when the obligation specified in the contract is discharged,
cancelled or expired.
Financial assets and liabilities will be offset and the net amount reported in the Statement of Assets and Liabilities when there will be a
legally enforceable right to set off the recognised amounts and there will be an intention to settle on a net basis, or to realise the assets
and settle the liabilities simultaneously.
Unit holders' Fund represents the units issued by the Fund, carried at the redemption amount representing the investors' right to a
residual interest in the Fund assets.
Units issued will be recorded at the offer price determined by the Management Company for the application received by the distributors
during business hours on that date. The offer priceshall represents the net assets value per units as of the closeof business day plus the
allowable front end load, provision for transaction cost and any provision for duties and charges, if applicable. The front-end load is
payable to the investment facilitator, distributors and the Management Company.
Units redeemed will be recorded at the redemption price applicable to units for which the distributors receive redemption requests during
the business hours of that day. The redemption priceshall represents the net asset value per unit as of the close of the business day less
any back-end load, any duties, taxes, charges on redemption and any provision for transaction costs, if applicable.
An equalisation account called the 'element of income / (loss) and capital gains / (losses) included in prices of units issued less those in
units redeemed' will be created, in order to prevent the dilution of per unit of income and distribution of income already paid out on
redemption.
The Scheme will also be exempt from the provisions of section 113 (minimum tax) under clause 11A of Part IV of the Second Schedule
to the Income Tax Ordinance, 2001.
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3.10 Revenue recognition
3.11 Expenses
3.12 Cash and cash equivalents
3.13 Other assets
3.14 Proposed dividend and transfer between reserves
(Unaudited)
4 BANK BALANCES Note March 31, 2012---(Rupees)---
In savings accounts
4.1 100,845,932
4.1
Gains / (losses) arising on sale of investments will be included in the Income Statement on the date at which the transaction takes place.
Unrealised gains / (losses) arising on revaluation of investments classified as financial assets at fair value through profit or loss and
derivatives will be included in the Income Statement in the period in which they arise.
Dividend income will be recognised when the right to receive the payment is established. Income on government securities will be
recognised on accrual basis using the effective interest rate method. Profit on bank deposit will be recognised on time proportion basis
taking in to account effective yield.
Element of income / (loss) and capital gains / (losses) included in prices of units issued less those in units redeemed will be included in
the Income Statement on the date of issue and redemption of units.
Other assets willb be stated at cost less impairment losses, if any.
All expenses will be recognised in the income statement on an accrual basis.
These savings accounts carry profit at the rates ranging from 5.00% to 10.25% per annum. This includes an amount of Rs 100,835,932
maintained with Askari Bank Limited, the holding company of Management Company.
Cashand cash equivalents include balances withbanks, other short term highlyliquid investments withoriginal maturities of three months
or less and bank overdrafts.
Dividends declared subsequent to the balance sheet date will be considered as non-adjusting event and will be recognised in the
financial statements in the period in which such dividends will be declared.
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5 CONTINGENCIES AND COMMITMENTS
There were no other contingencies and commitments outstanding as at March 31, 2012.
6 RISK MANAGEMENT
Note UNAUDITED
7 PAYABLE TO ASKARI INVESTMENT MANAGEMENT March 31, 2012LIMITED - MANAGEMENT COMPANY ---(Rupees)---
Formation cost 1,245,000
Deposits 100,000
Other payable 240,000
1,585,000
8 TRANSACTIONS WITH CONNECTED PERSONS / RELATED PARTIES
Unaudited
8.1 Transactions during the period: ---(Rupees)---
Askari Bank Limited (Holding company of the Management Company)Investment during the period (1,000,000 units) 100,000,000
(Unaudited)
8.2 Amounts outstanding as at period end March 31, 2012
---(Rupees)---
Askari Investment Management Limited
- Management CompanyFormation cost 1,245,000
Deposits 100,000
Other payable 240,000
Askari Bank Limited (Holding company of the Management Company)Investment held in the fund 1,000,000 units 100,000,000
Balance with bank 100,835,932
Profit receivable 875,253
Markup payable on core investment 1,681,185
9 GENERAL
9.1 Figures have been rounded off to the nearest rupee.
10 DATE OF AUTHORISATION FOR ISSUE
For Askari Investment Management Limited
(Management Company)
These financial statements were authorised for issue on April 18, 2012 by the Board of Directors of the Management Company.
For the period
from February 1,
2012 to March
31, 2012
The fund has not commenced operations yet and the amount of core investment has been keptin bank deposit with a bank having
AA long time credit rating, hence the fund's exposure to credit risk is low.
Details of the transactions with connected person / related parties other than those disclosed else where in this condensed interim
financial information are as follows:
Connected persons / related parties include Askari Investment Management Limited being the Management Company, Central
Depository Company of Pakistan Limited being the Trustee, Askari Bank Limited being the holding company of the Management
Company, Askari General Insurance Company Limited being an associate company of the Management Company, Askari
Investment Management Employees Provident Fund and other Collective Investments Schemes under common management and
the directors and officer of the Management Company.
Transactions with connected persons / related parties are in the normal course of business and are carried out agreed terms.