VISION - AWT Investments · 2018-07-02 · 4,158,994 4,298,517 4,158,994 4,298,517-Rup es in ' 0...

“To be a dominant player in the fund management industryrecognized for its high levels of ethical and professional conduct

and a commitment towards enhancing investor interests.”

“To deliver quality and innovative asset management, wealthmanagement and advisory services at the local and regional level.”

V I S I O N

M I S S I O N

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PIML INCOME FUND (formerly PRIMUS CASH FUND) 04

PIML DAILY RESERVE FUND (formerly PRIMUS DAILY RESERVE FUND) 23

PIML STRATEGIC MULTI ASSET FUND 41

PIML ISLAMIC MONEY MARKET FUND 61

PIML ISLAMIC EQUITY FUND 77

M a i n C o n t e n t s

PIML INCOME FUND(formerly Primus Cash Fund)

FOR THE HALF YEAR ENDED DECEMBER 31, 2014

Fund’s Information

Directors' Report to the Unit Holders

Trustee Report to the Unit Holders

Auditors' Report to the Unit Holders onReview of Interim Financial Information

Condensed Interim Statement of Assets and Liabilities

Condensed Interim Income Statement

Condensed Interim Statement of Comprehensive Income

Condensed Interim Distribution Statement

Condensed Interim Statement of Movement in Unit Holders' Fund

Condensed Interim Cash Flow Statement

Notes to the Condensed Interim Financial Information

t a b l e o f c o n t e n t s

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09

10

11

12

13

14

15

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Income Fund(formerly Primus Cash Fund)

IMLP

FUND’S INFORMATION

Management Company Primus Investment Management Limited4th Floor. Horizon Vista. Commercial 10Block 4. Scheme 5. Clifton Karachi

Board of Directors Mr. Khalid Aziz Mirza Director / Chairman

Ms. Ayesha Aziz Director

Mr. Zafar Iqbal Sobani Director

Mr. Mokhzani Izhar Director

Mr. Adnan Ahmed Siddiqui Chief Executive Officer

CFO & Company Secretary Ms. Rahaila Aleem

Audit Committee Mr. Khalid Aziz Mirza Director / Chairman



Trustee Central Depository Company of Pakistan LimitedCDC House, 99 B, Block B, SMCHS,Main Shahra-e-Faisal, Karachi

Auditors M. Yousuf Adil Saleem & Co. Chartered AccountantsCavish Court, A-35, Block 7&8, KCHSU,Shahra-e- Faisal Karachi

Legal Advisors Mohsin Tayebaly & Co.2nd Floor, Dime Centre, BC-4 Block 9, Kehkashan,Clifton, Karachi

Bankers Allied Bank LimitedBank Al-Habib LimitedBank Alfalah LimitedFaysal Bank LimitedHabib Bank LimitedUBL Bank LimitedSummit Bank LimitedAskari Bank Limited

Rating A+(f) by PACRA

05


IMLP

DIRECTORS’ REPORT TO THE UNIT HOLDERS

The Board of Directors of Primus Investment Management Limited, the Management Company of Primus InvestmentManagement Limited - Income Fund [formerly Primus Cash Fund] (the Fund), is pleased to present the un-auditedcondensed interim financial statements for the six months period ended December 31, 2014.

REVIEW OF FUND PERFORMANCE

PIML Income Fund remained consistent in outperforming the benchmark by notable margins during the first half.The fund not only reported extraordinary return of 16.93% for 1HFY2015, but also recorded an exceptional returnof 22.03% for 2QFY15.

06

Sept-14 Dec-14 QTR FYTDPIML -IF 12.52% 24.58% 22.03% 16.93%Benchmark 9.43% 9.00% 9.19% 9.31%

During 1HFY2015, the fund maintained average allocation of around 81% of net assets in government securitieswith highest weight-age of 55% in bonds followed by 26% in the treasury bills. However, the fund was adequatelydistributed in other high yielding investment avenues including TFC/Sukuks coupled with money market placementswith Banks & DFIs and cash at bank.

The performance was mainly driven by the accumulation in longer term government securities, building up hugemark-to-market gains. Concurrently, the income from placements with Banks & DFIs, TFC/Sukuks and cash depositat bank at attractive rates added-on to the performance, accomplishing better yields.

The fund posted a net income of PKR 231.99 million for the period under review. The net assets for the periodwere recorded at PKR 4.16 billion. The net asset value (NAV) per unit of the fund as at December 31, 2014 wasPKR 108.74.

The portfolio is actively monitored and repositioned in accordance with the market, benefiting any opportunitywhile maximizing the returns.

ECONOMIC OUTLOOK

First half of the fiscal year witnessed some major developments on macroeconomic front, which cumulativelystrengthened the economy to certain level. Though political situation remained volatile during this period, thegovernment carried out their reform agenda as planned and successfully executed secondary offering of ABL alongwith issuance of USD 1bn Sukuk in international market. IMF also showed its satisfaction over the macros andapproved two loan tranches worth USD 1.05bn during this period. Apart from that, sharp decline in internationaloil prices witnessed recently caused a little relief in external account; however we expect better impact on importbill in second half of the year.

CPI inflation clocked in at 6.1% during the 1HFY15 as compared to 8.9% during the corresponding period last year.Inflation declined ahead of lower oil prices leading to reduced transport cost. The soft CPI numbers has led to re-initiation of monetary easing cycle as SBP has reduced 150bps since November 2014.

During the period under review, the country's Current Account deficit posted an increase of 18.0%YoY or USD361mnto USD2.4bn (1.6% of GDP) against USD2.0bn (1.6% of GDP) registered 1HFY14. The massive uptick in C/A deficitcan be attributed to i) 4%YoY increase in overall import bill to USD21.9bn and ii) 2%YoY decline in export receiptsto USD12.2bn. On the other hand, balance of payment position got strengthened by USD1.0bn on account ofglobal Sukuk auction along with improvement in capital account to the tune of USD252mn (up 55%YoY). On aquarterly basis however, C/A deficit significantly improved to USD715mn (down by USD932mn or 56.6%) during2QFY15 as against a deficit of USD1.6bn registered in 1QFY15. The improvement in quarterly deficit can be attributedto 38%QoQ decline in trade deficit to USD3.8bn on account of 16% decline in imports (oil imports down 30%)along with 5% increase in exports. We expect external account position to further strengthen in later half of FY15in the wake of i) bearish outlook of global crude oil prices on account of rising crude oil supplies ii) expectedincrease in FDI on account effective execution of privatization of SOEs. Consequently, we believe C/A deficit forFY15 to decline significantly. Foreign exchange reserves of the country improved from USD 14.12bn in June 2014to USD 15.26bn in December 2015, showing growth of 8%.


IMLP

07

We expect macroeconomic picture to get better in CY15 on many fronts, firstly liquidity of the economy is improvingowing to better foreign inflows, lower import bill and declining budgetary borrowing, secondly monetary easingwill likely boost the economic growth. Apart from that continuation of reform agenda by the government will pavethe way to recovery of fiscal balances and economic growth.

FUND STABILITY RATING - PIML INCOME FUND [FORMERLY PRIMUS CASH FUND]

The fund stability rating 'AAA (f)' (Triple A (f)) assigned by The Pakistan Credit Rating Agency Limited (PACRA) waschanged to 'A+ (f)' (A plus (f)) in consequence of change in fund category from money market scheme to incomescheme.

MANAGEMENT QUALITY RATING

The JCR-VIS Credit Rating Company Limited has reaffirmed Management Quality Rating of "AM3" (AM Three) 'withpositive outlook' to Primus Investment Management Limited on November 18, 2014. The rating denotes highmanagement quality of the Management Company.

ACKNOWLEDGEMENT

The Board of Directors of the Management Company is thankful to the Securities and Exchange Commission ofPakistan for their valuable support, assistance and guidance. The Board also wish to express gratitude to theemployees of the Management Company and the Trustee for their dedication and hard work and the unit holdersfor their confidence in the Management.

Karachi: February 27, 2015

Adnan Ahmed SiddiquiChief Executive Officer


IMLP

TRUSTEE REPORT TO THE UNIT HOLDERS

08


IMLP

AUDITORS' REPORT TO THE UNIT HOLDERS ON REVIEW OF INTERIM FINANCIALINFORMATION

09


IMLP

10

CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIESAS AT DECEMBER 31, 2014

Total assets

Payable to Primus Investment Management Limited - Management Company

Accrued expenses and other liabilities

Total liabilities

NET ASSETS

UNITS HOLDERS' FUND (AS PER ATTACHED STATEMENT)

Number of units in issue

Net asset value per unit

Note

4,189,705 4,402,552

7 12,647 8,964

8 15,581 10,849

30,711 104,035

4,158,994 4,298,517

4,158,994 4,298,517

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

38,245,504 42,905,453

108.74 100.19

Bank balancesInvestmentsPrepayment and other receivablesPreliminary and floatation costsSecurity deposit with Central Depository Company of Pakistan Limited

LIABILITIES

Payable to Central Depository Company of Pakistan Limited - TrusteePayable to Securities and Exchange Commission of PakistanDividend payable

Contingencies and commitments

The annexed notes 1 to 13 form an integral part of this condensed interim financial information.

December 31,2014

(Un-audited)

456

9

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

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

7562,303

81,163

7571,726

-

100789

153,2864,136,103

112,274

100661

128,0723,133,644

927,228

(Audited)2014

June 30,

For Primus Investment Management Limited(Management Company)

Chief Executive Officer Director


IMLP

CONDENSED INTERIM INCOME STATEMENT (UN-AUDITED)FOR THE HALF YEAR ENDED DECEMBER 31, 2014

11

- bank balances 11,127 9,126 8,811 7,84120,968 6,125

2,127 41897,906 45,299

- -- -

(1,361)

through profit or loss - held-for-trading' 306 - 306 -

Total Income 314,703 128,766 185,722 58,327

7,8911,4651,263

645473

64125188

92692621

Brokerage and settlement charges 125 61 70 49

Total operating expenses 40,153 28,420 20,286 12,948

Net income for the period before taxation 274,550 100,346 165,436 45,379

14,611

Net income for the period before taxation 231,998 117,957 115,572 59,990- -

Net income for the period after taxation 231,998 117,957 115,572 59,990

18,6181,977

207,29111,514

2,00161,869

INCOME

Return / mark-up on;

- letters of placementterm deposit receipt

- term finance certificates- other income

Net gain /(loss) on sale of investmentsNet unrealized gain on investments classified 'at fair value

EXPENSES

Remuneration of Primus Investment Management Limited - Management CompanySindh Sales tax on remuneration of Management CompanyFederal excise duty on remuneration of Management companyRemuneration of Central Depository Company of Pakistan Limited - TrusteeAnnual fee to Securities and Exchange Commission of PakistanAmortization of preliminary and floatation costsAnnual listing feeStability rating feeAuditors' remunerationProvision for Workers' Welfare FundPrinting and related costs

Element of (loss) / income and capital (loss) / gain in prices ofunits issued less those of units redeemed - net

Taxation


- government securities

For the half year endedDecember 31,

2014 2013 2014December 31,

For the quarter ended

-------------------------------- Rupees in '000 ---------------------------------2013

(Restated)(Restated)Note

10

11

(42,552) 17,611

2,0484,735

23,0104,0043,682 2,783

3,22817,392

1,4041,043

25101166

128

41

2,3801,726

12825

101177

60

-

11,249517

92,28511,389

61,165 (1,356)-

11,6452,0261,864

1,200874

64125078

2,36043

(49,864)

-




IMLP

12

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)FOR THE HALF YEAR ENDED DECEMBER 31, 2014

2014 2013 2014 2013

Total comprehensive income for the period 326,472 116,276 195,885 59,454

For the half year ended For the quarter ended

1,698

92,776

231,998

(536)

59,990

78,592

1,721(615)

(1,066)

117,957 115,572Net income for the period after taxation

Items that may be reclassified subsequently to income statement:

Net unrealized gain / (loss) on revaluation of investments classifiedas 'available-for-sale'

Reclassification adjustment relating to loss / (gain) realized on maturity /disposal of investments classified as 'available-for-sale'


Other comprehensive income for the period:

(Restated) (Restated)

December 31,December 31,

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

-




IMLP

13

CONDENSED INTERIM DISTRIBUTION STATEMENT (UN-AUDITED)FOR THE HALF YEAR ENDED DECEMBER 31, 2014

-2,589

11,023 2,589

117,957

(227)(17,260)

(40)(2,964)

For the half year ended

(2,964)

Undistributed income carried forward 243,021 3,644

Representing:

243,021 3,644

Undistributed income brought forward

Representing:- unrealized income- realized income

First interim distribution ''Nil'' (July 31, 2013: Rs. 0.5823 per unit)

- bonus units - ''Nil'' (2013: issued 2,265 units @ Rs.100.1191)- cash distribution

Net income for the period after taxation

Second interim distribution ''Nil'' (August 29, 2013: Rs. 0.6759 per unit)

- bonus units - ''Nil'' (2013: 2,647 units @ Rs. 100.0187) per unit- cash distribution

Third interim distribution ''Nil'' (September 30, 2013: Rs. 0.1000 per unit)

- bonus units - ''Nil'' (2013: 392 units @ Rs. 100.4842 per unit)- cash distribution

Fourth interim distribution ''Nil'' (October 30, 2013: Rs. 0.1000 per unit)

- bonus units - ''Nil'' (2013: 391 units @ Rs. 101.0373 per unit)- cash distribution

Fifth interim distribution ''Nil'' (December 30, 2013: Rs. 2.2913 per unit)

- bonus units - ''Nil'' (2013: 685,144 units @ Rs. 100.0046 per unit)- cash distribution

- unrealized income- realized income


December 31,2014

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

2013

-11,023

231,998

--

--

--

--

(20,034)(265)

(2,964)(39)

--

306242,715 3,644

-

(68,518)(4,591)




IMLP

14

CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUND (UN-AUDITED)FOR THE HALF YEAR ENDED DECEMBER 31, 2014

2014 2013

Issue of 51,324,876 units (2013: 29,727,547 units) 5,475,970 2,965,349Redemption of 55,984,825 units (2013: 339,357 units) (5,984,517) (2,761,444)

(508,547) 203,905

(17,611)

For the half year ended

Net assets at the end of the period 4,158,994 3,261,813

Net Assets at the beginning of the period

Net element of loss / (income) and capital loss / (gain) included in prices of unitsunits issued less those of units redeemed - net

Net unrealized gain / (loss) on revaluation of investmentsclassified as 'available-for-sale'

Reclassification adjustment relating to loss / (gain) realized on maturity /disposal of investments classified as 'available-for-sale'


First interim distribution ''Nil'' (July 31, 2013: Rs. 0.5823 per unit)

- cash distribution

Second interim distribution ''Nil'' (August 29, 2013: Rs. 0.6759 per unit)

- cash distribution

Third interim distribution ''Nil'' (September 30, 2013: Rs. 0.1000 per unit)

- cash distribution

Fourth interim distribution ''Nil'' (October 30, 2013: Rs. 0.1000 per unit)

- cash distribution

Fifth interim distribution ''Nil'' (December 30, 2013: Rs. 2.2913 per unit)

- cash distribution

Net asset value per unit at the beginning of period

Net asset value per unit at the end of period


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

December 31,

(Restated)

4,298,517 3,007,056

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

108.74

100.19 100.11

100.08

(4,591)

(2,964)

(2,964)

(20,034)-

-

-

-

- (17,260)

117,957

(615)

(1,066)

42,552

92,776

1,698

231,998




IMLP

15

CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED)FOR THE HALF YEAR ENDED DECEMBER 31, 2014

units issued less those of units redeemed - net

Investments - netPrepayments

Payable to Primus Investment Management Limited - Management Company


Net cash generated from operating activities

Amounts received from issuance of units

Dividend paid

Net increase in cash and cash equivalents during the period

Cash and cash equivalents at the end of the period

CASH FLOWS FROM OPERATING ACTIVITIES

Net income for the period before taxation

Adjustments:

Return / mark-up on;- government securities- bank balances- letters of placementterm deposit receipt- term finance certificates

Net (gain) / loss on sale of marketable securitiesNet unrealized gain on investments classified 'at fair value

through profit or loss - held-for-trading'Amortization of preliminary and floatation costsElement of income and capital gain in prices of

(Increase) / decrease in assets

Increase / (decrease) in liabilities

Payable to Central Depository Company of Pakistan Limited - TrusteePayable to Securities and Exchange Commission of Pakistan

Return / mark-up received

CASH FLOWS FROM FINANCING ACTIVITIES

Amounts paid on redemption of units

Net cash (used in) / generated from financing activities

Cash and cash equivalents at the beginning of the period


42,552 (17,611)

(38,024) (28,292)

1,229,932 (55,168)(29) (25)

1,229,903 (55,193)

3,683 (1,745)

4,732 2,203

1,404,664 53,004

5,475,970 2,930,400

(81,163) (92,230)

814,954 129,730

4 927,228 142,407

For the half year ended December 31,

2014Note ---------- Rupees in '000 ----------

(Restated)

2013

231,998

(207,291)(11,127)(18,618)

(1,977)(11,514)(61,869)

(306)128

1(577)

7,839204,946

(5,984,517)

(589,710)

112,274 12,677

76,726

(2,761,444)

137,136(647)

(990)(115)

128-

1,361

(2,127)(20,968)

(9,126)(97,906)

117,957




IMLP

16

NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION (UN-AUDITED)FOR THE HALF YEAR ENDED DECEMBER 31, 2014

1 LEGAL STATUS AND NATURE OF BUSINESS

Primus Investment Management Limited – Income Fund (formerly Primus Cash Fund) ("the Fund") has been established under a TrustDeed, dated June 20, 2012, between Primus Investment Management Limited as the Management Company, a company incorporatedunder the Companies Ordinance, 1984 and Central Depository Company of Pakistan Limited (CDC) as the Trustee, also incorporatedunder the Companies Ordinance, 1984.

During the year ended June 30, 2014, the Fund has been re-categorized from money market category to income fund category. Securitiesand Exchange Commission of Pakistan has approved the application for amendments related to above change in the first supplementaloffering document via letter dated April 16, 2014.

The Fund aims to generate reasonable returns consistent with low risk from a portfolio constituted of high quality short and long termdebt instruments including cash deposits and government securities.

The JCR VIS Credit Rating Company Limited (JCR VIS) has assigned an asset manager rating of AM3 ‘with positive outlook’ to theManagement Company while the stability rating of A+(f) has been assigned to the Fund by the Pakistan Credit Rating Agency Limited(PACRA).

2. BASIS OF PREPARATION

2.1 Statement of compliance

This condensed interim financial information has been prepared in accordance with the approved accounting standards as applicablein 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 (Establishmentand Regulation) Rules, 2003 (the NBFC Rules), the Non-Banking Finance Companies and Notified Entities Regulations, 2008 (the NBFCRegulations) and directives issued by the Securities and Exchange Commission of Pakistan (SECP). Wherever the requirements of theNBFC Rules, the NBFC Regulations or directives issued by the SECP differ with the requirements of IFRS, the requirements of the NBFCRules, the NBFC Regulations or the directives issued by the SECP shall prevail.

The disclosures made in this condensed interim financial information have, however, been limited based on the requirements ofInternational Accounting Standard 34: 'Interim Financial Reporting'. This condensed interim financial information does not include allthe information and disclosures required in a full set of financial statements and should be read in conjunction with the annual publishedfinancial statements of the Fund for the year ended June 30, 2014.

This condensed interim financial information is un-audited. However, a limited scope review has been performed by the external auditorsin accordance with the requirements of the Code of Corporate Governance.

2.2 Basis of measurement

This condensed interim financial information has been prepared under the historical cost convention except for investments which arestated at fair value.

2.3 Functional and presentation currency

This condensed interim financial information has been presented in Pak Rupees, which is the functional and presentation currency ofthe Fund. Figures have been rounded off to the nearest thousand rupee, except otherwise stated.

2.4 Critical accounting judgments and estimates

The preparation of condensed interim financial information in conformity with approved accounting standards requires the use of certaincritical accounting estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and income andexpenses. It also requires management to exercise its judgment in the process of applying the Fund’s accounting policies. Estimates,judgments and assumptions are continually evaluated and are based on historical experience and other factors, including expectationsof future events that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. The significantjudgments made by the management in applying the accounting policies and the key sources of estimation uncertainty are consistentwith those applied to the financial statements for the year ended June 30, 2014.

2.5 Financial risk management

The Fund's financial risk management objectives and policies are consistent with that disclosed in the financial statements for the yearended June 30, 2014.


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17

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies adopted for the preparation of this condensed interim financial information are the same as those applied inthe preparation of the annual published financial statements of the Fund for the year ended June 30, 2014.

During the year ended June 30, 2014, the accounting policy of recognition of element of income / (loss) has been changed by recordingelement of income / (loss) in income statement which was previously recorded in distribution statement. The revised treatment, in theopinion of the management, reflects a more appropriate manner for determination of element of income / (loss). The policy has beenapplied retrospectively. Accordingly, the figures of comparative period has been restated in line with last year policy.

December 31, June 30,2014 2014

Note(Un-audited) (Audited)

4.1



5.1.1 -5.1.1 -

370,006 -

5.2.1 1,076,5165.2.2 2,949,587

2,273,638 4,026,103

110,0005.3 -

3,133,644 4,136,103

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

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

Letters of placementTerm Deposit Receipt

-Loans and receivables

Market Treasury BillsPakistan Investment Bonds

- Available-for-saleGovernment securities

Standard Chartered Bank LimitedAskari Bank Limited

Term finance certificates - unlisted - Held-for-trading

INVESTMENTS5.

These accounts carry mark-up rates ranging from 7% to 10% (June 2014: 6% to 9.50%) per annum.4.1

Saving accountsBANK BALANCES4.

927,228 112,274

360,00010,006

95,2502,178,388

490,000-

5.1 Held-for-trading

5.1.1 Details of Investment in Term Finance Certificates - unlisted, unsecured

Holding at thebeginning of the

period

Acquiredduring the

period

Matured /disposed

during theperiod

Holding at theend of period

Market value /Carrying value of

holdings% of net assets

% of totalinvestment

Rupees in '000

- - 72,000 360,000 8.66% 11.49%

- - 2,000 10,006 0.24% 0.32%

- 74,000 - 74,000 370,006 8.90% 11.81%

369,700

------------------------ Number of certificates -------------------------------

Cost as at December 31, 2014

Bank LimitedStandard CharteredAskari Bank Limited

2,000

72,000


IMLP

18

5.3 Letters of placement carry mark-up rate of 10% per annum (June 2014: 'Nil').

5.1.2 Other particulars of Term Finance Certificates are as follows:

Rating Issue date Maturity date

Semi-annually 5,000 AA- September 30, September 30,2014 2024

Standard Chartered Two equal semi- 5,000 AAA June 29 2012 June 29, 2022Bank Limited annual installments

in tenth year

6 Month KIBORask rate plus

Askari Bank Limited

Face valueName of the InvesteeRepaymentfrequency

Profit rate perannum

6 Month KIBORask rate plus

5.2 Available-for-sale - Government securities

5.2.1 Market Treasury Bills

- Face value of Rs.100,000 each unless otherwise stated.


period

Acquiredduring the

period

Matured /disposed

during theperiod





Rupees in '000Treasury bills

- 12 Months - 20,990 20,500 490 45,343 1.09% 1.45% - 6 Months - 3,500 3,500 - - - - - 3 Months 10,850 28,700 39,050 500 49,907 1.20% 1.59%

10,850 53,190 63,050 990 95,250 2.29% 3.04%

Cost as at December 31, 2014 95,210

5.2.2 Pakistan Investment Bonds

- Face value of Rs.100,000 each unless otherwise stated.


period

Acquiredduring the

period

Matured /disposed

during theperiod





Rupees in '000Pakistan Investment Bonds - 10 Years - 11,000 - 11,000 1,186,627 28.53% 37.87% - 5 Years 5,500 5,000 5,000 5,500 579,818 13.94% 18.50% - 3 Years 24,500 27,750 48,250 4,000 411,943 9.90% 13.15%

30,000 43,750 53,250 20,500 2,178,388 52.38% 69.52%

Cost as at December 31, 2014 2,085,651

-------------------------- Number of certificates --------------------------------

--------------------------- Number of certificates -----------------------------

June 30,December 31,2014

-------- Rupees in '000 --------(Un-audited) (Audited)

2014Note

1,024

128,072 153,286

Prepaid listing fees- term finance certificate- government securities- clean placements and term deposits receipt- bank balances

Profit receivable on:

Prepayment and other receivables6.

5,907 1,459

109,673 11,004 29

-

152,262 - -


IMLP

19

7.1 As per requirements of Finance Act 2013, the Federal Excise Duty (FED) at the rate of 16% on remuneration of Management Companyhas been applied effective from June 13, 2013. During the previous year, demand notices were received by some asset managementcompanies for collection of FED. Mutual Fund Association of Pakistan (MUFAP) has taken up the matter collectively and filed a petitionwith the Honorable Sindh High Court and has been granted stay in this regard. During the previous year, the Management Company hasalso received a notice under section 14 of the Federal Excise Act, 2005 regarding payment of FED on management remuneration. TheManagement Company is of the view that since the remuneration is already subject to provincial sales tax, further levy of FED may resultin double taxation, which does not appear to be the spirit of the law. Therefore, the Management Company has also filed a petitionagainst the demand notice in the Honorable High Court of Sindh and has been granted stay on the basis of the pending constitutionalpetition from MUFAP in the said court as referred above. However, as a matter of abundant caution, the Fund has made the provisionagainst FED.

9. CONTINGENCIES AND COMMITMENTS

There were no contingencies and commitments outstanding as at December 31, 2014.

15,581 10,849

December 31, June 30,

8. ACCRUED EXPENSES AND OTHER LIABILITIES

Auditors' remunerationPrinting and stationeryProvision for Workers' Welfare FundPACRA Rating feeBrokerage payablePayable against redemption of unitsOthers

Note2014

-------- Rupees in '000 ---------(Un-audited) (Audited)

2014

10

15520

14,919107356

24-

10,18572

177

6343

3729

June 30,December 31,2014

-------- Rupees in '000 --------(Un-audited) (Audited)

2014Note

3,165 3,5351,027 6568,455 4,773

12,647 8,964

Federal excise duty payable on remuneration of Management CompanySindh Sales tax on remuneration of Management CompanyRemuneration payable to Management Company

LIMITED - MANAGEMENT COMPANYPAYABLE TO PRIMUS INVESTMENT MANAGEMENT7.

7.1

10. PROVISION FOR WORKERS' WELFARE FUND

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

Subsequently, the Ministry of Labour and Manpower (the Ministry) vide its letter dated 15 July 2010 clarified that “Mutual Fund(s) is aproduct which is being managed / sold by the Asset Management Companies which are liable to contribute towards Workers WelfareFund under Section-4 of WWF Ordinance 1971. However, the income on Mutual Fund(s), the product being sold, is exempted under thelaw ibid”.

Further, the Secretary (Income Tax Policy) Federal Board of Revenue (FBR) issued a letter dated October 6, 2010 to the Members (DomesticOperation) North and South FBR. In the letter, reference was made to the clarification issued by the Ministry of Labour and Manpowerstating that mutual funds are a product and their income are exempted under the law ibid. The Secretary (Income Tax Policy) FederalBoard of Revenue directed that the Ministry’s letter may be circulated amongst field formations for necessary action. Following theissuance of FBR Letter, show cause notice which had been issued by taxation office to certain mutual funds for payment of levy underWWF were withdrawn. However, the Secretary (Income Tax Policy) Federal Board of Revenue vide letter January 4, 2011 has cancelledab-initio clarificatory letter dated October 6, 2010 on applicability of WWF on mutual funds and issued show cause notices to certainmutual funds for collecting WWF. In respect of such show cause notices, certain mutual funds have been granted stay by Honorable HighCourt of Sindh on the basis of the pending constitutional petition in the said court as referred above.


IMLP

20

Furthermore, in 2011 the Honourable Lahore High Court in a Constitutional Petition relating to the amendments brought in WWFOrdinance through the Finance Act 2006, and the Finance Act, 2008, has declared the said amendments as unlawful and unconstitutional.The Management Company is hopeful that the decision of the Honourable Lahore High Court, will lend further support to the ConstitutionalPetition which is pending in the Honourable High Court of Sindh.

During the year ended June 30, 2013, the Larger Bench of the Sindh High Court (SHC) issued a judgment in response to a petition inanother similar case in which it is held that the amendments introduced in the WWF Ordinance through Finance Acts, 2006 and 2008do not suffer from any constitutional or legal infirmity.

During the year ended June 30, 2014, the Honourable Peshawar High Court on a petition filed by certain aggrieved parties (other thanthe mutual funds) have adjudicated that the amendments introduced in the Workers Welfare Fund Ordinance, 1971 through the FinanceActs of 1996 and 2009 lacks the essential mandate to be introduced and passed through the money bill under the Constitution of Pakistanand hence have been declared as ultra vires the Constitution.

However, without prejudice to the above, the Management Company, as a matter of abundant caution, has decided to record theprovision for WWF amounting to Rs. 14.919 million in aggregate including Rs. 4.735 million for the half year ended December 31, 2014.

11. TAXATION

The Fund's income is exempt from Income Tax as per clause (99) of Part I of the Second Schedule of the Income Tax Ordinance, 2001subject to the condition that not less than 90% of the accounting income for the year as reduced by capital gains whether realized orunrealized is distributed amongst the unit holders (excluding distribution made by issuance of bonus units). Furthermore, as per regulation63 of the Non-Banking Finance Companies and Notified Entities Regulations, 2008 the Fund is required to distribute 90% of the netaccounting income other than unrealized capital gains to the unit holders. The Fund intends to distribute such accounting income forthe year ending June 30, 2015 to its unit holders. Accordingly, no liability has been recorded in the current period.

12. TRANSACTIONS WITH CONNECTED PERSONS / RELATED PARTIES

12.1 Connected persons / related parties include Primus Investment Management Limited being the Management Company, Central DepositoryCompany of Pakistan Limited being the Trustee, Pak Brunei Investment Company Limited being the holding company of the ManagementCompany, Pak Brunei Investment Company Limited - Employee Provident Fund, other collective investment schemes managed by theManagement Company and key management personnel.

12.2 Transactions with connected persons are carried out in normal course of business at contracted rates and terms determined in accordancewith market norms.

12.3 Details of transactions with connected persons during the period are as follows:

Primus Investment Management Limited - Management Company

Remuneration of Management Company 23,010 17392Sindh sales tax on remuneration of Management Company 4,004 3228Federal excise duty on remuneration of Management Company 3,682 2783Issuance of 1,505,700 units (2013 : 2,003,751 units) 159,391Issuance of 'Nil' bonus units (2013 : 3 units) - -Redemption of 1,734,505 units (2013 : 'Nil' units) 182,847 -

204,849

2014 2013

(Un-audited) (Un-audited)

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


Pak Brunei Investment Company Limited

Issuance of 38,197,084 units (2013 : 24,456,599 units) 4,100,000 2,500,000Issuance of 'NIL' bonus units (2013 : 619,477 units) - -Redemption of 48,550,209 units (2013 : 27,059,808 units) 5,195,520 2,750,000Placements entered during the period 1,500,000Placements matured during the period 1,340,000 1,800,000Mark-up earned on placements during the period 17,367 13,272Mark-up on placements received during the period 11,460 -Cash dividend during the period - 43,222Cash dividend paid during the period 81,163 43,222Sale of investments in government securities 2,400,0004,280,000

1,830,000


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21

13. DATE OF AUTHORIZATION FOR ISSUE

This condensed interim financial information was authorized for issue on 27 February, 2015 by the Board of Directors of theManagement Company.

2014 2013

(Un-audited) (Un-audited)

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


Primus Investment Management Limited - Provident Fund

Issuance of 2,417 units (2013 : 'Nil' units) 257

Central Depository Company of Pakistan Limited - Trustee

Remuneration of the Trustee 2,380 1,404

Directors and Officers of the Management Company and their relatives

Director

Issuance of 37,008 units (2013 : 'Nil' units) 3,775 -Issuance of 'NIL' bonus units (2013 : 12 units) - -

-Officers and their relativesIssuance of 4,232 units (2013 : 'Nil' units) 437Redemption of 4,232 units (2013: 'Nil' units) 440Issuance of 'NIL' bonus units (2013 : 49 units) -

June 30,2014

(Un-audited) (Audited)

3,535656

4,77398,929

3,696,331--

81,163

-

756100

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

December 31,2014

-

117

5,907490,000

2,885,969

82,4928,455

3,1651,027

-

263

757100

4,024

127

Remuneration payable to the Management CompanySindh sales tax payable on remuneration of Management CompanyFederal excise duty payable on remuneration of Management CompanyUnits held - 758,614 units (June 30, 2014 : 987,413 units)

12.4 Detail of balances outstanding at the period end with connected persons are as follows:



Units held - 26,540,083 units (June 30, 2014 : 36,893,209 units)Clean placementProfit receivable on clean placementsDividend payable


Units held - 2,417 units (June 30, 2014 : 'Nil' units)


Remuneration payable to the TrusteeSecurity deposit

Directors and Officers of the Management Company and their relativesDirectorUnits held - 37,008 units (June 30, 2014 : 'Nil' units)

Officers and their relatives

Units held - 1,164 units (June 30, 2014 : 1,164 units)

-

-

---




PIML Daily Reserve Fund(formerly Primus Daily Reserve Fund)



Directors’ Report to the Unit Holders











24

25

27

28

29

30

31

32

33

34

35

Daily Reserve Fund(formerly Primus Daily Reserve Fund)

IMLP

24












Trustee Central Depository Company of Pakistan Limited

CDC House, 99 B, Block B, SMCHS,

Main Shahra-e-Faisal, Karachi

Auditors M. Yousuf Adil Saleem & Co. Chartered Accountants

Cavish Court, A-35, Block 7&8, KCHSU,

Shahra-e- Faisal Karachi

Legal Advisors Mohsin Tayebaly & Co.

2nd Floor, Dime Centre, BC-4 Block 9, Kehkashan,

Clifton, Karachi

Bankers Allied Bank LimitedBank Al-Habib LimitedBank Alfalah LimitedFaysal Bank LimitedHabib Bank LimitedUnited Bank Limited

Rating AA (f) by PACRA


IMLP


25

The Board of Directors of Primus Investment Management Limited, the Management Company of PIML DailyReserve Fund (formerly Primus Daily Reserve Fund) (the Fund), is pleased to present the un-audited condensedinterim financial statements for the six months period ended December 31, 2014.


PIML Daily Reserve Fund was the top performing fund amongst the category and peers on December 31, 2014.The fund remained consistent in outperforming the benchmark during the first half and reported respectablereturns of 9.21% for the 1HFY2015 and 9.19% for the 2QFY15, respectively.

During 1HFY2015, the fund maintained average allocation of around 43% of net assets in treasury bills followedby 27% placement with DFIs and 17% as cash at bank. However, the remaining assets were also distributedadequately.

The performance was mainly driven by the treasury bills, concurrently supported by the income from placementswith Banks & DFIs, Reverse repo and cash deposit at bank at attractive rates.

The fund posted a net income of PKR 156.71 million for the period under review. The net assets for the periodwere recorded at PKR 3.53 billion; recording a growth of 17.67%. The net asset value (NAV) per unit of the fundas at December 31, 2014 was PKR 104.83.

ECONOMIC OUTLOOK






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26

FUND STABILITY RATING

The Fund stability rating 'AA (f)' (Double A (f)) assigned by The Pakistan Credit Rating Agency Limited (PACRA) tothe Fund remain unchanged.



ACKNOWLEDGEMENT





IMLPTRUSTEE REPORT TO THE UNIT HOLDERS

27


IMLPAUDITORS' REPORT TO THE UNIT HOLDERS ON REVIEW OF INTERIM FINANCIAL

INFORMATION

28


IMLP

29

CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIESAS AT DECEMBER 31, 2014


(Un-audited) (Audited)Note

4 1,573,114 12,6515 1,967,051 3,002,3396 8,297 18,722

1,192 1,392

Total assets 3,549,654 3,035,104

Payable to Primus Investment Management Limited - Management Company 7 5,432 4,935202 310

1,173 3,845- 14,660

Accrued expenses and other liabilities 8 13,385 10,502

20,192 34,252

NET ASSETS 3,529,462 3,000,852

UNITS HOLDERS' FUND (AS PER ATTACHED STATEMENT) 3,529,462 3,000,852

9

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

Number of units in issue 33,668,955 29,954,443

Net asset value per unit 104.83 100.18

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

ASSETS

Bank balancesInvestmentsPrepayment and other receivablesPreliminary and floatation costs

LIABILITIES


Total liabilities



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




IMLPCONDENSED INTERIM INCOME STATEMENT (UN-AUDITED)


30

- bank balances 9,595 93,153 6,095 33,03631,269 20,965 21,57415,934 4,054 12,83390,971 33,433 57,590

- 5,059 -Net gain / (loss) on sale of investments 7 (95) 194 420

Total Income 156,184 231,232 69,800 125,453

Remuneration of Primus Investment Management Limited -7,037 11,107 3,150 5,9621,224 2,062 548 1,1071,126 1,778 504 955

1,551 2,229 714 1,1831,173 1,851 525 994

200 200 100 10013 13 7 6

101 111 51 56176 162 76 84

10 3,198 4,229 1,621 2,29635 65 18 44


For the quarter endedDecember 31,

35 65 18 44Brokerage and settlement charges 310 208 118 185


Net income from operating activities 140,040 207,217 62,368 112,481

16,668 11,178 17,067 11,577


11 - - - -



- letters of placement - term deposit receipts - government securities - reverse repo against PIB

EXPENSES

Management CompanySindh Sales tax on remuneration of Management CompanyFederal excise duty on remuneration of Management CompanyRemuneration of Central Depository Company

of Pakistan Limited - TrusteeAnnual fee to Securities and Exchange Commission of PakistanAmortization of preliminary and floatation costs

Stability rating feeAnnual listing fee

Auditors' remunerationProvision for Workers' Welfare FundPrinting and related costs

Element of income and capital gain prices of units issued less those of units redeemed - net

Taxation


Note2014 2013

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

20132014

11,69252,560

74,2038,127




IMLP

31




investments classified as 'available-for-sale' 97 (509) 132 (1,313)

Reclassification adjustment relating to gain realized on maturity /disposal of investments classified as 'available-for-sale' 354 (135) 617 -


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


For the quarter endedDecember 31,



Net unrealized gain/(loss) on revaluation of


218,395156,708 79,435 124,058

2014 201320132014




IMLP

32


2014 2013

(Restated)Undistributed income brought forward

Representing:

-realized / income - --unrealized / income 5,761 9,655

5,761 9,655

Net income for the period after taxation 156,708 218,395

Final distribution 'Nil' (July 24, 2013: @ Rs. 0.2302 per unit)- bonus units - 'Nil' units (2013: 41,745 units @ Rs.100.5366 per unit) - (4,197)- cash distribution - (5,458)

First interim distribution 'Nil' (July 30, 2013: @ Rs. 0.6127 per unit)- bonus units - 'Nil' units (2013: 114,914 units @ Rs.100.0645 per unit) - (11,499)- cash distribution - (15,835)

Second interim distribution 'Nil' (August 29, 2013: @ of Rs. 0.7162 per unit)- bonus units - 'Nil' units issued (2013: 162,324 units @ Rs. 100.0106 per unit) - (16,234)- cash distribution - (17,068)

Third interim distribution 'Nil' (September 30, 2013: @ Rs. 0.1000 per unit)- bonus units - issued 'Nil' units (2013: 26,309 units @ Rs. 100.5805 per unit) - (2,646)- cash distribution - (2,513)

Fourth interim distribution 'Nil' (October 30, 2013: @ Rs. 1.2883 per unit)- bonus units - issued 'Nil' (2013: 314,749 units @ Rs. 100.0206 per unit) - (31,481)- cash distribution (35,328)

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


- cash distribution (35,328)

Fifth interim distribution 'Nil' (December 02, 2013: @ Rs. 0.3931 per unit)- bonus units - issued 'Nil' units (2013: 104,181 units @ Rs. 100.3000 per unit) - (10,449)- cash distribution - (11,633)

Sixth interim distribution 'Nil' (December 30, 2013: @ Rs. 0.9762 per unit)- bonus units - issued 'Nil' units (2013: 297,594 units @ Rs. 100.0008 per unit) - (29,760)- cash distribution - (26,948)


Representing:-realized / income 162,469 7,001-unrealized / income - -

162,469 7,001


-




IMLP

33


2014 2013

(Restated)

Net Assets at the beginning of the period 3,000,852 4,000,900

Issue of 52,022,119 units (2013: 81,132,132 units) 5,371,632 8,043,730

Redemption of 48,307,607 units (2013: 62,656,060 units) (4,983,513) (6,291,212)

388,119 1,752,518

Element of income and capital gain included in prices of units issued less those in units redeemed - net (16,668) (11,178)

Net unrealized appreciation on re-measurement of investmentsclassified as 'available-for-sale' 97 (509)

Reclassification adjustment relating to gain realized on maturity /disposal of investments classified as 'available-for-sale' 354 (135)

Net income for the period 156,708 218,395

Final distribution 'Nil' (July 26, 2013: @ Rs. 0.2302 per unit)- cash distribution - (5,458)

First interim distribution 'Nil' (July 31, 2013: @ Rs. 0.6127 per unit)- cash distribution - (15,835)

Second interim distribution 'Nil' (August 29, 2013: @ Rs. 0.7162 per unit)- cash distribution - (17,068)

Third interim distribution 'Nil' (September 30, 2013: @ Rs. 0.1000 per unit)- cash distribution - (2,513)

Fourth interim distribution 'Nil' (October 30, 2013: @ Rs. 1.2883 per unit)

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


- cash distribution - (35,328)

Fifth interim distribution 'Nil' (December 2, 2013: @ Rs. 0.3931 per unit)- cash distribution - (11,633)

Sixth interim distribution 'Nil' (December 30, 2013: @ Rs. 0.9762 per unit)- cash distribution - (26,948)

Net assets at the end of the period 3,529,462 5,845,208

Net assets value per unit at the beginning of the period 100.18 100.25

Net assets value per unit at the end of the period 104.83 100.11


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




IMLP

34


2014 2013Note

(Restated)

CASH FLOWS FROM OPERATING ACTIVITIESNet income for the period before taxation 156,708 218,395

Adjustments:


- government securities (74,203) (90,971)- bank balances (9,595) (93,153)- letters of placement (52,560) (31,269)- term deposit receipt (11,692) (15,934)- reverse repo against PIB (8,127) -Net gain on sale of investments (7) 95Amortization of preliminary and floatation costs 200 200Element of income and capital gain prices of units issued less those of units redeemed - net (16,668) (11,178)

(172,652) (242,210)(Increase) / decrease in assets

Investments - net 1,109,949 (3,627,622)Prepayments and other receivable 83,008 73

1,192,957 (3,627,549)Increase / (decrease) in liabilities

Payable to Primus Investment Management Limited - Management Company 497 (119)

Payable to Central Depository Company of Pakistan Limited - Trustee (108) 163Payable to Securities and Exchange Commission of Pakistan (2,672) 1,407Payable against purchase of government securities - 1,590,215

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


600 1,596,280Return on bank balances received 9,391 229,630

Net cash generated from / (used in) operating activities 1,187,004 (1,825,454)


Amounts received from issuance of units 5,371,632 8,043,730Amounts paid on redemption of units (4,983,513) (6,291,212)Dividend paid (14,660) (99,021)

Net cash generated from financing activities 373,459 1,653,497

Net decrease in cash and cash equivalents during the period 1,560,463 (171,957)

Cash and cash equivalents at the beginning of the period 12,651 3,230,144

Cash and cash equivalents at the end of the period 4 1,573,114 3,058,187


Accrued expenses and other liabilities 2,883 4,614




IMLP

35


1. LEGAL STATUS AND NATURE OF BUSINESS

Primus Investment Management Limited - Daily Reserve Fund (formerly Primus Daily Reserve Fund) ("the Fund") has been establishedunder a Trust Deed, dated October 15, 2012, between Primus Investment Management Limited as the Management Company, a companyincorporated under the Companies Ordinance, 1984 and Central Depository Company of Pakistan Limited (CDC) as the Trustee, alsoincorporated under the Companies Ordinance, 1984.

The Management Company of the Fund has been licensed by the Securities and Exchange Commission of Pakistan (SECP) to undertakeasset management and investment advisory services as a Non-Banking Finance Company. The registered office of Primus InvestmentManagement Limited is situated at 4th Floor, Horizon Vista, Commercial 10, Block 4, Scheme 5, Clifton, Karachi.

The Fund is categorized as an open-ended money market fund and is listed on Islamabad Stock Exchange Limited. Units are offered forpublic subscription on continuous basis and can be redeemed by surrendering them to the Fund at the option of the unit holder.

The Fund's initial offering period was December 24, 2012 to January 1, 2013 and its operations started from January 2, 2013.

The Fund aims to saving optimization and creating awareness in individuals / SME's & corporate sector for meeting any unexpected costthat may arise in the future, by providing them with competitive returns that constitutes low risk, and to maximize current incomeconsistent with preservation of capital and liquidity.

The JCR VIS Credit Rating Company Limited (JCR VIS) has assigned an asset manager rating of AM3 ‘with positive outlook’ to theManagement Company while the stability rating of AA+(f) has been assigned to the Fund by the Pakistan Credit Rating Agency Limited(PACRA).




The disclosures made in this condensed interim financial information have, however, been limited based on the requirements ofInternational Accounting Standard 34 'Interim Financial Reporting'. This condensed interim financial information does not include allthe information and disclosures required in a full set of financial statements and should be read in conjunction with the published annualfinancial statements of the Fund for the year ended June 30, 2014.





The preparation of condensed interim financial information in conformity with approved accounting standards requires the use of certaincritical accounting estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and income andexpenses. It also requires management to exercise its judgment in the process of applying the Fund’s accounting policies. Estimates,judgments and assumptions are continually evaluated and are based on historical experience and other factors, including expectationsof future events that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. The significantjudgments made by the management in applying the accounting policies and the key sources of estimation uncertainty are consistentwith those applied to the financial statements for the year ended June 30, 2014.


The Fund's financial risk management objectives and policies are consistent with that disclosed in the financial statements for the yearended June 30, 2014.


IMLP

36


The accounting policies adopted for the preparation of this condensed interim financial information are the same as those applied inthe preparation of the annual published financial statements of the Fund for the year ended June 30, 2014.

During the year ended June 30, 2014, the accounting policy of recognition of element of income / (loss) has been changed by recordingelement of income / (loss) in income statement which was previously recorded in distribution statement. The revised treatment, in theopinion of the management, reflects a more appropriate manner for determination of element of income / (loss). The policy has beenapplied retrospectively. Accordingly, the figures of comparative period has been restated in line with last year policy.



4. BANK BALANCES

Saving accounts 4.1 1,573,114 12,651

4.1 These accounts carry mark-up rates ranging from 6% to 9.50% (June 2014: 5% to 9.5%) per annum.

5. INVESTMENTS

- Available-for-sale

5.1

1,447,051 1,512,339 - Loans and receivables

- 840,000Letter of placements 5.2Certificates of investment 5.3

1,967,051 3,002,339

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

Government securities

200,000650,000

-320,000

1,447,051 1,512,339

Term deposit receipts

5.1 Available-for-sale - Government securities

- Face value of Rs. 100,000 each unless otherwise stated.


period

Acquiredduring the

period

Matured /disposed during

the period

Holding atthe end of

period


holdings

% ofnet assets

% ofinvestment

(Rupees in '000)Market treasury bills

- 4,250 (3,000) 1,250 122,5237,500 7,000 (12,150) 2,350 230,9297,900 25,150 (22,050) 11,000

15,400 36,400 (37,200) 14,600 1,447,051 40.99%

Cost as at December 31, 2014 1,425,100

- 3 Months

-------------------- Number of certificates -------------------------

- 1 Year - 6 Months

1,093,599

6.23%11.74%55.59%

3.47%6.54%

30.98%

73.56%


IMLP

37

5.2 Letters of placement carry mark-up rates ranging from of 10.4% (June 2014: 8.25% to 10.3%) per annum and will be matured onApril 21, 2015.

5.3 Certificates of investment carry mark-up rate of 10.2% (June 2014: Nil) per annum and will mature on April 6, 2015.

Note -------- Rupees in '000 --------(Un-audited) (Audited)

6. PREPAYMENT AND OTHER RECEIVABLES

Prepaid stability rating fee 12 84Profit receivable from:

- bank balances 274 70- clean placements 6,565 7,528- return on term deposit receipt 9,762- certificates of investments 168 -

Recoverable from Management Company on account of WWF 1,278 1,278

8,297 18,722

7. PAYABLE TO PRIMUS INVESTMENT MANAGEMENT LIMITED - MANAGEMENT COMPANY

Remuneration payable to Management Company 839 1,487295 276

Federal excise duty payable on remuneration of Management Company 7.1 4,298 3,172

5,432 4,935

December 31,2014

June 30,2014

Sindh sales tax on remuneration of Management Company

7.1 As per the requirement of Finance Act 2013, Federal Excise Duty (FED) at the rate of 16% on management remuneration has been appliedeffective from June 13, 2013. During the period demand notices were received by some asset management companies for collection ofFED. Mutual Fund Association of Pakistan (MUFAP) has taken up the matter collectively and filed a petition with the Honorable SindhHigh Court and has been granted stay in this regard. During the period, the Management Company has also received a notice undersection 14 of the Federal Excise Act, 2005 regarding payment of FED on management remuneration. The Management Company is ofthe view that since the remuneration is already subject to provincial sales tax, further levy of FED may result in double taxation, whichdoes not appear to be the spirit of the law. Therefore, the Management Company has also filed a petition against the demand noticein the Honorable High Court of Sindh and has been granted stay on the basis of the pending constitutional petition from MUFAP in thesaid court as referred above. However, as a matter of abundant caution, the Fund has made the provision against FED.

13,385 10,502



Auditors' remunerationPrinting and stationeryProvision for Workers' Welfare FundPayable against redemption of unitsPayable to brokerOthers

Note

10

2014-------- Rupees in '000 --------


2014

15344

13,043-108

37

17534

9,845218223

7

-


IMLP

38




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

Subsequently, the Ministry of Labor and Manpower (the Ministry) vide its letter dated 15 July 2010 clarified that “Mutual Fund(s) isa product which is being managed / sold by the Asset Management Companies which are liable to contribute towards Workers WelfareFund under Section-4 of WWF Ordinance 1971. However, the income on Mutual Fund(s), the product being sold, is exempted under thelaw ibid”.

Further, the Secretary (Income Tax Policy) Federal Board of Revenue (FBR) issued a letter dated October 6, 2010 to the Members (DomesticOperation) North and South FBR. In the letter, reference was made to the clarification issued by the Ministry of Labor and Manpowerstating that mutual funds are a product and their income are exempted under the law ibid. The Secretary (Income Tax Policy) FederalBoard of Revenue directed that the Ministry’s letter may be circulated amongst field formations for necessary action. Following theissuance of FBR Letter, show cause notice which had been issued by taxation office to certain mutual funds for payment of levy underWWF were withdrawn. However, the Secretary (Income Tax Policy) Federal Board of Revenue vide letter January 4, 2011 has cancelledab-initio clarificatory letter dated October 6, 2010 on applicability of WWF on mutual funds and issued show cause notices to certainmutual funds for collecting WWF. In respect of such show cause notices, certain mutual funds have been granted stay by Honorable HighCourt of Sindh on the basis of the pending constitutional petition in the said court as referred above.

Furthermore, in 2011 the Honorable Lahore High Court in a Constitutional Petition relating to the amendments brought in WWF Ordinancethrough the Finance Act 2006, and the Finance Act, 2008, has declared the said amendments as unlawful and unconstitutional. TheManagement Company is hopeful that the decision of the Honorable Lahore High Court, will lend further support to the ConstitutionalPetition which is pending in the Honorable High Court of Sindh.


During the year ended June 30, 2014, the Honorable Peshawar High Court on a petition filed by certain aggrieved parties (other thanthe mutual funds) have adjudicated that the amendments introduced in the Workers Welfare Fund Ordinance, 1971 through the FinanceActs of 1996 and 2009 lacks the essential mandate to be introduced and passed through the money bill under the Constitution of Pakistanand hence have been declared as ultra vires the Constitution.

However, without prejudice to the above, the Management Company, as a matter of abundant caution, has decided to record theprovision of WWF amounting to Rs. 13.043 million in aggregate including Rs.3.198 million for the half year ended December 31, 2014.

The Management Company passed the resolution on April 25, 2013 and resolved that the liability of Workers' Welfare Fund for the periodended June 30, 2013 amounting to Rs. 1.278 million shall be borne by the Management Company. Thereafter, WWF has been chargedto the Fund.

11. TAXATION



IMLP

39


12.1 Connected persons / related parties include Primus Investment Management Limited being the Management Company, Central DepositoryCompany of Pakistan Limited being the Trustee, Pak Brunei Investment Company Limited being the holding company of the ManagementCompany, Pak Brunei Investment Company Limited - Employee Provident Fund and other collective investment schemes managed bythe Management Company and key management personnel.



12.3 Detail of transactions with connected persons during the period are as follows:


Sindh sales tax on remuneration of Management Company Remuneration of Management Company

Federal excise duty on remuneration of Management Company Issuance of 1,873,190 units (December 2013: 5,399,904 units)

Redemption of 2,071,345 units (December 2013: 6,007,089 units) Issuance of 'Nil' bonus units (December 2013: 33,949 units)

Cash dividend paid during the period


Issuance of 28,711,503 units (December 2013: 4,44,568,460 units) Redemption of 20,172,014 units (December 2013: 42,909,383 units) Placements entered during the period Placements matured during the period Mark-up earned on placements during the period Mark-up on placements received during the period Cash dividend paid during the period Purchase of investments in market treasury bills Sale of investment in market treasury bills

Central Depository Company of Pakistan Limited - Trustee Remuneration of the Trustee

Pak Brunei Investment Company Limited - Employee Provident Fund Dividend paid

4,474,9854,305,000

2,790,0003,115,000

19,45984,068

2,100,000

760,000550,000

2,0152,115

1316

2,095,000 2,998,979

1,551

-

2,229

337,0891,7782,062

11,107

-

3,728606,116

7,037 1,224 1,126 193,675 - 252,377 -

20132014---- Rupees in '000 ----

(Un-audited)

40

--

92,897


Issuance of 'Nil' bonus units (December 2013: 3,595 units)

Officer Issuance of 10 units (December 2013: 'Nil' units) 1

- -

-

Director


IMLP

40

Primus Investment Management Limited - Management Company Remuneration payable to the Management Company 839 1,487 Sindh Sales tax payable on remuneration of Management company 295 276 Federal excise duty payable on remuneration of Management company 4,298 3,172 Units held - 588,846 units (June 30, 2014: 787,000 units) 61,729 78,842

Primus Investment Management Limited - Employee Provident Fund Units held - 7,287 (June 30, 2014: Nil units) 764 -

Pak Brunei Investment Company Limited Units held - 15,295,200 units (June 30, 2014: 6,755,712 units) 1,603,396 676,791 Dividend payable - 16,481

Pak Brunei Investment Company Limited - Employee Provident Fund Units held - 12,000 units (June 30, 2014: 12,000 units) 1,258 1,202 Dividend payable - 8

Central Depository Company of Pakistan Limited - Trustee Remuneration payable to the Trustee 202 310

Directors and Officers of the Management Company and their relativesOfficer Units held - 9.8 units (June 30, 2014: 'Nil' units) 1 -


Detail of balances outstanding at the period end with connected persons are as follows:12.4

2014----- (Rupees in '000) -----

(Un-audited)

2014

(Audited)





PIML STRATEGIC MULTI ASSET FUNDFOR THE HALF YEAR ENDED DECEMBER 31, 2014













42

43

45

46

47

48

49

50

51

52

53

Strategic Multi Asset FundIMLP

42













Auditors M. Yousuf Adil Saleem & Co. Chartered AccountantsCavish Court, A-35, Block 7&8, KCHSU,Shahra-e- Faisal Karachi

Legal Advisor Mohsin Tayebaly & Co.2nd Floor, Dime Centre, BC-4 Block 9, Kehkashan,Clifton, Karachi

Bankers Sindh Bank LimitedNIB Bank LimitedHabib Bank LimitedBank Al-Falah LimitedFaysal Bank LimitedBank Al-Habib Limited



43

The Board of Directors of Primus Investment Management Limited, the Management Company of Primus InvestmentManagement Limited - Strategic Multi Asset Fund ("the Fund"), is pleased to present the un-audited condensedinterim financial statements for the six months period ended December 31, 2014.


PIML Strategic Multi Asset Fund was launched on 23rd August 2013. The fund falls in the Balanced Fund categoryand offers a unique investment opportunity, as it is the only Fund in its category that offer exposure to FixedIncome, Equities and Gold. The Net Assets of the fund at December 31, 2014 were PKR 162.77 million.

The fund posted a net income of PKR 13.06 million for the period under review. The Net Asset Value (NAV) perunit was PKR 119.75. On December 31, 2014, the FYTD return of the Fund was 14.49%, compared to the benchmarkreturn of 7.12%, outperforming by 737 basis points. The Fund has increased its exposure in Equities and takenexposure in PIBs to take advantage of monetary easing going forward. The exposure in Equities on December 31,2014 was 65.33%. The Fund currently has no exposure in Gold and the remaining assets are held as cash in bank.

ECONOMIC OUTLOOK






44

EQUITY MARKET REVIEW

KSE-100 Index earned around 2480 points and posted a growth of 8.4% in 1HFY15. Improving macros and highvisibility of Pakistani market among foreigners led to this impressive performance of the market. Positives duringthe period were successful secondary offerings of planned State owned organizations, issuance of USD 1bn Sukukin international debt market, approval and release of two loan tranhes from IMF worth USD 1.05bn and drasticdecline in international oil prices, which dragged the oil sector of the equity market but impacted positive onexternal account of the country.

During the year CY14, the index earned 27% return and became third best performing market in the world andsecond best performing in the regional (after China). Despite earning high return, the Index still remains mostattractive in the region with P/E of 9x and dividend yield of 6.1%.

Foreigners were net buyers of USSD 113.06mn as compared to negative 9.78mn in the corresponding period lastyear. On cumulative basis, net inflow of FIPI for the period CY14 stood at USD 384.65mn close to last year's foreigninvestment of USD 393.39mn.

Despite overall high performance, heavy weight sector specially oil & gas sectors performed negative during thefirst half of the year due to fall in oil prices, however cements, Autos and IPPs performed positive during the periodunder review.

Another reason for Bull Run of the market was easing monetary policy stance head of soft inflation during theperiod. CPI inflation for 1HFY15 stood at 6.1% as compared to 8.9% in the corresponding period last year. Due tolower inflation figures, the SBP reduced the policy rate by 50bps in the monetary policy announced in November,and another 100bps in the recently announced policy in January 2015.

Outlook for performance of market in CY15 seems to be positive as macroeconomic situation is getting betterahead of building forex reserves, declining oil prices, lower inflation and lower discount rate. All this along withhigh earning expectations of the corporates due to plunging costs and improving margins bode well for the equitymarket in the year CY15.



ACKNOWLEDGEMENT






45



46


47

CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIESAS AT 31 DECEMBER 2014

Note

4567

Total assets 164,485 120,612

Payable to Primus Investment Management Limited - Management Company 8 839 3,2405885

2,680Accrued expenses and other liabilities 9 699 819

Total liabilities 1,710 6,882

NET ASSETS 162,775 113,730

UNITS HOLDERS' FUND (AS PER ATTACHED STATEMENT) 162,775 113,730

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

Number of units in issue 1,359,250 1,087,322

Net asset value per unit 119.75 104.59

ASSETS

Bank balancesInvestmentsPrepayments, deposits and other receivablesPreliminary and floatation costs

LIABILITIES




(Un-audited)2014

December 31,

(Audited)2014

June 30,

31,094126,848

4,5681,975

14,48395,381

8,5002,248

117

-

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

-------- Number of units --------10

55




CONDENSED INTERIM INCOME STATEMENT (UN-AUDITED)FOR THE HALF YEAR ENDED DECEMBER 31, 2014

48

INCOME


- bank balances 733 2,273 441 1,199 - government securities 1,200 - 600 -Dividend income 2,230 2,250 1,760 1,800Net gain on sale of investments 1,341 415 803 (1,979)Other income 10 42 10 -Net unrealized gain on investments classified 'at fair value

through profit or loss - held-for-trading' 7,383 2,295 7,457 2,295

Total income 12,897 7,275 11,071 3,315

EXPENSESRemuneration of Primus Investment Management Limited - Management Company 1,283 862 707 545Sindh Sales tax on remuneration of Management Company 223 160 123 101Federal excise duty on remuneration of

Management company 205 138 113 87Remuneration of Central Depository Company of Pakistan Limited - Trustee 353 251 177 176Annual fee to Securities and Exchange

Commission of Pakistan

For the halfyear ended

December 31,2014

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

For the periodended from

July 18, 2013 toDecember 31,

2013

For the quarterended

December 31,2014


December 31,2013

Commission of PakistanAmortization of preliminary and floatation costs 273 193 136 136Annual listing fee 20 197 10 190Auditors' remuneration 187 138 72 97Provision for Workers' Welfare Fund 11 267 98 256 31Printing and related costs 35 38 18 28Brokerage and settlement charges 193 246 105 147Other expenses - 95 - 86



Element of gain / (loss) and capital gains / (losses) included in prices of unitsissued less those in units redeemed - net 3,261 (296) 3,212 (79)


Taxation 12 - - - -



Note(Restated) (Restated)

55 37 31 24




49





December 31,2014



2013


December 31,2014


December 31,2013


disposal of investments classified as 'available-for-sale'Reclassification adjustment relating to gain realized on maturity /

as 'available-for-sale'Net unrealized gain / (loss) on revaluation of investments classified



Net income for the period after taxation 13,064

9,300

(514) -

(445)

4,526 12,535

7,809

(817) -

3,938

1,667

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




50


- - realized income 21 -

4,097 -

4,526

- bonus units - issued ''Nil'' (2013: 267 units @ Rs.101.9399) per unit - (27)(819)


2,2951,385

17,161 3,680




December 31,2014

Undistributed income brought forward

Representing: - unrealized income


First interim distribution ''Nil'' (December 30, 2013: Rs. 0.7852 per unit)

- cash distribution

Representing: - unrealized income - realized income


2013---------- Rupees in '000 ----------

(Restated)

4,076

13,064

-

7,3839,778




51


-

Issue of 2,737,590 units (2013: 3,718,650 units) 307,138 372,732

Redemption of 2,465,662 units (2013: 2,640,630 units) (276,682) (265,253)

30,456 107,479

296

(445)

-

4,526

(819)

Net assets at the end of the period 162,775 111,037




December 31,

Net assets at the beginning of the period

Element of (income) / loss and capital (gain) / loss included in prices of unitsissued less those in units redeemed - net

Reclassification adjustment relating to gain realized on maturity /disposal of investments classified as 'available-for-sale'


First interim distribution ''Nil'' (December 30, 2013: Rs. 0.7852 per unit)- cash distribution


119.75 103.00Net asset value per unit at the end of period

Net asset value per unit at the beginning of period 100.00104.59

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

Net un-realized gain / (loss) on revaluation of investmentsclassified as 'available-for-sale'

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

20132014

113,730

(3,261)

9,300

13,064

-

(514)




52


4,526

Return / mark-up on;-

(2,273)(2,250)

-(415)

through profit or loss - held-for-trading' (7,383) (2,295)193

issued less those in units redeemed - net (3,261) 296

(15,885) (6,744)

(2,821) (2,218)

Investments - net (12,936) (58,615)(6,374)

Preliminary and floatation costs - (2,686)

(67,675)

Payable to Primus Investment Management Limited - Management Company (2,401) 3,23459


December 31,2014



5937

-- 34,949

Accrued expenses and other liabilities (120) 3,832

42,1111,9502,090

Net cash (used in) operating activities (13,845) (23,742)

Amounts received from issuance of units 307,138 372,732Amounts paid on redemption of units (276,682) (265,253)

Net cash generated from financing activities 30,456 107,479

Net increase in cash and cash equivalents during the period 16,611 83,737

Cash and cash equivalents at the beginning of the period 14,483 -

Cash and cash equivalents at the end of the period 4 31,094 83,737



Adjustments

- government securities - bank balancesDividend incomeOther incomeNet (gain) on sale of marketable securitiesNet unrealized gain on investments classified 'at fair value

Amortization of preliminary and floatation costsElement of (gain) / loss and capital (gains) / losses included in prices of units

(Increase) / decrease in assets

Prepayments, deposits and other receivables

Increase / (decrease) in liabilities

Payable to Central Depository Company of Pakistan Limited - TrusteePayable to Securities and Exchange Commission of PakistanDividend payablePayable against redemption of units

Dividend receivedReturn / mark-up received



Note2013

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

13,064

(1,200)(733)

(2,230)(10)

(1,341)

273

4,319

(8,617)

(30)59

(2,680)

(5,172)2,170

595




53



Primus Investment Management Limited Strategic Multi Asset Fund ("the Fund") has been established under a Trust Deed, datedApril 11, 2013, between Primus Investment Management Limited as the Management Company, a company incorporated under theCompanies Ordinance, 1984, and Central Depository Company of Pakistan Limited (CDC) as the Trustee, also incorporated under theCompanies Ordinance, 1984.

The Management Company of the Fund has been licensed by the Securities and Exchange Commission of Pakistan (SECP) to undertakeasset management and investment advisory services as a Non-Banking Finance Company. The registered office of Primus InvestmentManagement Limited is situated at 4th Floor, Horizon Vista, Commercial 10, Block 4, Scheme 5, Clifton, Karachi.

The Fund is an open-ended balanced scheme and is listed on Karachi Stock Exchange Limited. Units are offered for public subscriptionon continuous basis and can be redeemed by surrendering them to the Fund at the option of the unit holder.

The Fund aims to offer retail and institutional clients a product that aims to maximize return and minimize risk. For this purpose, abalanced portfolio is created that has an optimal mix of equity, debt securities and commodity.

The JCR VIS Credit Rating Company Limited (JCR VIS) has assigned an asset manager rating of AM3 ‘with positive outlook’ to theManagement Company.




The disclosures made in this condensed interim financial information have, however, been limited based on the requirements ofInternational Accounting Standard 34 - 'Interim Financial Reporting'. This condensed interim financial information does not include allthe information and disclosures required in a full set of financial statements and should be read in conjunction with the annual publishedfinancial statements of the Fund for the period ended June 30, 2014.


2.2 Basis of measurement

This condensed interim financial information has been prepared under the historical cost convention except for investments which arestated at fair value.




The preparation of condensed interim financial information in conformity with approved accounting standards requires the use of certaincritical accounting estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and income andexpenses. It also requires management to exercise its judgment in the process of applying the Fund’s accounting policies. Estimates,judgments and assumptions are continually evaluated and are based on historical experience and other factors, including expectationsof future events that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. The significantjudgments made by the management in applying the accounting policies and the key sources of estimation uncertainty are consistentwith those applied to the financial statements for the period ended June 30, 2014.


54


The Fund's financial risk management objectives and policies are consistent with that disclosed in the financial statements for the periodended June 30, 2014.


The accounting policies adopted for the preparation of this condensed interim financial information are the same as those applied inthe preparation of the financial statements of the Fund for the period ended June 30, 2014.

During the period ended June 30, 2014, the accounting policy of recognition of element of income / (loss) has been changed by recordingelement of income / (loss) in income statement which was previously recorded in distribution statement. The revised treatment, in theopinion of the management, reflects a more appropriate manner for determination of element of income / (loss). The policy has beenapplied retrospectively. Accordingly, the figures of comparative period has been restated in line with last year policy.

December 31,2014

June 30,2014

Note



126,848 95,381

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

Saving accountsBANK BALANCES4.

4.1 31,094 14,483

4.1 These accounts carry mark-up rates ranging from 7% to 8% (2014: 4.94% to 9.5%) per annum.

Note (Un-audited)------- Rupees in '000 --------

2014 2014

(Audited)

INVESTMENTS

At fair value through profit or loss - held-for-tradingListed equity securities

Available-for-saleListed equity securitiesGovernment securities

5.

5.25.3

62,887 35,821

43,45220,509

39,82919,731

5.1


5.1 At fair value through profit or loss - held-for-trading - Listed equity securities

Shares of listed companies - fully paid ordinary shares with a face value of Rs.10/- each unless stated otherwise.

Rupees in '000'

Chemicals

Engro Corporation Limited 3,000 12,000 - - 15,000 3,323 2.04 2.62 0.65-

3,000 12,000 - - 15,000 3,323 2.04 2.62 0.65

Oil & Gas

Pakistan State Oil Company Limited 26,000 6,000 - - 32,000 11,453 7.04 9.03 4.22Mari Petroleum Limited* - 7,000 500 7,000 500 238 0.15 0.19 0.26

- 4,000 - 4,000 - - - - -Pakistan Oil Fields Limited - 4,000 - 4,000 - - - - -

26,000 21,000 500 15,000 32,500 11,691 7.19 9.22 4.48

Construction & Materials (Cement)

Maple Leaf Cement Company Limited 115,000 50,000 - 50,000 115,000 5,089 3.13 4.01 0.3810,000 25,000 - 10,000 25,000 2,763 1.70 2.18 -

Fauji Cement Company Limited 200,000 - - - 200,000 5,168 3.17 4.07 -Lafarge Pakistan Cement Limited 300,000 - - 75,000 225,000 3,904 2.40 3.08 -Pioneer Cement Limited - 40,000 - - 40,000 3,424 2.10 2.70 -

625,000 115,000 - 135,000 605,000 20,348 12.50 16.04 0.38

11,000 - - 4,000 7,000 1,535 0.94 1.21 -

11,000 - - 4,000 7,000 1,535 0.94 1.21 -

Personal Goods (Textile)

Nishat Mills Limited 5,000 27,500 - - 32,500 3,932 2.42 3.10 -- 25,000 6,250 15,000 16,250 1,056 0.65 0.83 -

5,000 52,500 6,250 15,000 48,750 4,988 3.07 3.93 -

Pak Electron Limited 40,000 40,000 14,000 14,000 80,000 3,274 2.01 2.58 0.01

40,000 40,000 14,000 14,000 80,000 3,274 2.01 2.58 0.01

Ghandara Nissan Limited - 10,000 - 10,000 - - - - -Pak Suzuki Motor Company Limited 7,000 17,300 - 8,300 16,000 5,938 3.65 4.68 0.01

7,000 27,300 - 18,300 16,000 5,938 3.65 4.68 0.01

Electricity

Hub Power Company Limited - 20,000 - - 20,000 1,567 0.96 1.24 -

- 20,000 - - 20,000 1,567 0.96 1.24 -

Commercial Banks

Askari Bank Limited 30,000 - - - 30,000 692 0.43 0.55 0.05Faysal Bank Limited 50,000 - - - 50,000 910 0.56 0.72 0.09National Bank of Pakistan 60,000 20,000 - - 80,000 5,557 3.41 4.38 -United Bank Limited 10,338 7,000 - - 17,338 3,064 1.88 2.42 -

150,338 27,000 - - 177,338 10,223 6.28 8.07 0.14

867,338 314,800 20,750 * 201,300 1,001,588 62,887 38.64 49.59 5.67


Market valueas a percentage

of paid-up capitalof investee companyMarket

value

Name of investee company

Number of SharesBalance as at

December 31, 2014

At thebeginning

of theperiod

Purchasesduring the

period

Salesduring the

period

As atDecember 31,

2014

Bonus /right issueduring the

period

55

Oil and Gas Development Company

Market valueas a

percentage ofnet assets

Market valueas a

percentage ofinvestments

D.G Khan Cement Limited

Pharma and Bio Tech

Glaxo Smith Kline

Gul Ahmed Textile Mills Limited *

House Hold Goods

Automobile and Parts


56

*This represents gross bonus shares as per Fund’s entitlement declared by the investee company. Finance Act, 2014 has broughtamendments in the Income Tax Ordinance, 2001 whereby the bonus shares received by the shareholder are to be treated as incomeand a tax at the rate of 5 percent is to be applied on value of bonus shares determined on the basis of day end price on the first day ofclosure of books. The tax is to be collected at source by the investee company which shall be considered as final discharge of tax liabilityon such income. However, the Management Company of the Fund jointly with other asset management companies and Mutual FundAssociation of Pakistan, has filed a petition in Honorable Sindh High Court to declare the amendments brought in Income Tax Ordinance,2001 with reference to tax on bonus shares for collective investment schemes as null and void and not applicable on the funds basedon the premise of exemption given to mutual funds under clause 47B and 99 of Second schedule of the Income Tax Ordinance, 2001.The Honorable Sindh High Court has granted stay order till the final outcome of the case. However, the investee company(s) has withheldthe share equivalent to 5% of bonus announcement and not yet deposited on CDC account of department of Income tax. Managementis of the view that the decision will be in the favor and accordingly has recorded the bonus shares on gross basis.

5.2

Rupees in '000'

Chemicals

Fatima Fertilizer Limited 70,000 5,000 - 50,000 25,000 895 0.55 0.71 0.00

70,000 5,000 - 50,000 25,000 895 0.55 0.71 0.00Oil & Gas

Pakistan Petroleum Limited 10,000 5,000 - 15,000 - - - - -

10,000 5,000 - 15,000 - - - - -

Construction & Materials (Cement)

D.G. Khan Cement Company Limited 85,000 - - - 85,000 9,395 5.77 7.41 0.02Lucky Cement Company Limited 10,000 13,000 12,000 11,000 5,503 3.38 4.34 0.00Fauji Cement Company Limited 50,000 - - - 50,000 1,292 0.79 1.02 0.01

145,000 13,000 - 12,000 146,000 16,190 9.94 12.77 0.03

Automobile and Parts

General Tyre Company Limited 20,000 - - 10,000 10,000 1,456 0.89 1.15 0.00

20,000 - - 10,000 10,000 1,456 0.89 1.15 0.00

Fixed Line Telecommunication

Pakistan TelecommunicationCompany Limited 61,000 - - 61,000 - - - - -

61,000 - - 61,000 - - - - -

Non - Life InsuranceAdamjee Insurance Company Limited 80,000 - - 50,000 30,000 1,484 0.91 1.17 0.00

80,000 - - 50,000 30,000 1,484 0.91 1.17 0.00Electricity

Nishat Chunian Power limited 100,000 - - - 100,000 4,955 3.04 3.91 0.00Nishat Power Limited 35,000 9,500 - - 44,500 2,029 1.25 1.60 0.00K Electric Limited 50,000 - - 50,000 - - - - -Kot Addu Power Company Limited* 100,000 - - - 100,000 7,894 4.85 6.22 0.00Engro Powergen Qadirpur Limited - 2,552 - - 2,552 105 0.06 0.08 0.03

285,000 12,052 - 50,000 247,052 14,983 9.20 11.81 0.03

Commercial Banks

Askari Bank Limited 20,000 - - - 20,000 461 0.28 0.36 0.04Bank Alfalah Limited 100,000 - - - 100,000 3,488 2.14 2.75 0.00United Bank Limited 10,000 - - - 10,000 1,767 1.09 1.39 0.00Bank Al Habib Limited - 25,000 - - 25,000 1,214 0.75 0.96 0.00Habib Bank Limited - 11,000 - 4,000 7,000 1,514 0.93 1.19 0.00

130,000 36,000 - 4,000 162,000 8,444 5.19 6.65 0.04

801,000 71,052 - 252,000 620,052 43,452 26.68 34.26 0.10


At thebeginning

of theperiod

Purchasesduring the

period

Salesduring the

period

As atDecember 31,

2014

Name of investee company

Number of SharesBalance as at

December 31, 2014

Marketvalue

Bonus / rightissue

duringthe

period

Shares of listed companies - fully paid ordinary shares with a face value of Rs.10/- each unless stated otherwise.

Available for sale - Ordinary shares

Market valueas a percentage

of paid-up capitalof investee company

Market valueas a

percentage ofnet assets

Market valueas a

percentage ofinvestments


57

* These shares include 40,000 shares which have been pledged with National Clearing Company of Pakistan Limited having a marketvalue amounting to Rs. 3.157 Million for guaranteeing settlement of the Fund's trades in accordance with Circular No. 11 datedOctober 23, 2007 issued by the SECP.

Balance as atDecember 31,

2014

Rupees in '000'

200,000 - - 200,000 20,509 12.60 16.17

Market value as at December 31, 2014 200,000 - - - 200,000 20,509 12.60 16.17


Market value as apercentage ofinvestments

Name of security

Marketvalueas a

percentageof netassets

At thebeginning

of theperiod

Bonus /rightissue

during

Salesduring the

period

As atDecember 31,

2014Market value

Number of Shares

Purchasesduring

theperiod

3 - Years Pakistan Investment Bonds

5.3 Available-for-Sale - Government Securities

the


2,958

3,019100

1,050

-1,011

-185177

4,568 8,500

Balance at the end of the period 1,975 2,248

December 31,2014

June 30,2014

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

6. PREPAYMENTS, DEPOSITS AND OTHER RECEIVABLES

Margin deposit with Pakistan Mercantile Exchange Limited (PMEX)against future contracts

Security deposit with:

Central Depository Company of Pakistan Limited (CDC)National Clearing Company of Pakistan Limited (NCCPL)

Advance against book building processProfit receivable on:

- bank deposits- government securities

Prepaid listing feeDividend receivableOthers

PRELIMINARY AND FLOATATION COSTS7.

Balances as at the beginning of the periodPreliminary and floatation costs incurred during the periodLess: amortization during the period

2,248

(273) (463)2,711

-7.1

7.1 Preliminary and floatation costs represent expenditure incurred to the commencement of operations of the Fund. These costs are beingamortized over a period of five years.

PAYABLE TO PRIMUS INVESTMENT MANAGEMENT LIMITED - MANAGEMENT COMPANY

Remuneration of Management CompanySindh sales tax on remuneration of Management CompanyFederal excise duty on remuneration of Management CompanyPreliminary and floatation costsOther payable

839 3,240


Note2014 2014

(Audited)(Un-audited)-------- Rupees in '000 --------

8.18.28.3

26270

504

3 22,711

29936

192

-

8.

-

3,019 100 -

138 1,029 10 245 27

-


58

8.1 Under the provisions of the Regulations, 2008, the Management Company of the Fund is entitled to a remuneration during first five yearsof the Fund, of an amount not exceeding 3 percent of the average annual net assets of the Fund and thereafter of an amount equal to2 percent of such assets of the Fund. In the current period, the Management Company has charged remuneration at the rate of 2 percentof the average annual net assets of the Fund. The amount of remuneration is being paid monthly in arrears.

8.2 It represents Sindh Sales Tax at the rate of 15% on the remuneration of the Management Company through the Sindh Sales Tax onServices Act, 2011.

8.3 As per the requirement of Finance Act 2013, Federal Excise Duty (FED) at the rate of 16% on management remuneration has beenapplied effective from June 13, 2013. During the previous year, demand notices were received by some asset management companiesfor collection of FED. Mutual Fund Association of Pakistan (MUFAP) has taken up the matter collectively and filed a petition with theHonorable Sindh High Court and has been granted stay in this regard. During the previous year, the Management Company has alsoreceived a notice under section 14 of the Federal Excise Act, 2005 regarding payment of FED on management remuneration. TheManagement Company is of the view that since the remuneration is already subject to provincial sales tax, further levy of FED may resultin double taxation, which does not appear to be the spirit of the law. Therefore, the Management Company has also filed a petitionagainst the demand notice in the Honorable High Court of Sindh and has been granted stay on the basis of the pending constitutionalpetition from MUFAP in the said court as referred above. However, as a matter of abundant caution, the Fund has made the provisionagainst FED.

699 819

June 30,December 31,


Auditors' remuneration

Provision for Workers' Welfare FundPayable against transactions in marketable securities

Listing fee payableOthers

(Un-audited)-------- Rupees in '000 ---------

2014Note

11.

144

452

103 362

185117155

-

-

-

(Audited)

2014




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

Subsequently, the Ministry of Labour and Manpower (the Ministry) vide its letter dated 15 July 2010 clarified that “Mutual Fund(s) is aproduct which is being managed / sold by the Asset Management Companies which are liable to contribute towards Workers WelfareFund under Section-4 of WWF Ordinance 1971. However, the income on Mutual Fund(s), the product being sold, is exempted under thelaw ibid”.

Further, the Secretary (Income Tax Policy) Federal Board of Revenue (FBR) issued a letter dated October 6, 2010 to the Members (DomesticOperation) North and South FBR. In the letter, reference was made to the clarification issued by the Ministry of Labour and Manpowerstating that mutual funds are a product and their income are exempted under the law ibid. The Secretary (Income Tax Policy) FederalBoard of Revenue directed that the Ministry’s letter may be circulated amongst field formations for necessary action. Following theissuance of FBR Letter, show cause notice which had been issued by taxation office to certain mutual funds for payment of levy underWWF were withdrawn. However, the Secretary (Income Tax Policy) Federal Board of Revenue vide letter January 4, 2011 has cancelledab-initio clarificatory letter dated October 6, 2010 on applicability of WWF on mutual funds and issued show cause notices to certainmutual funds for collecting WWF. In respect of such show cause notices, certain mutual funds have been granted stay by Honorable HighCourt of Sindh on the basis of the pending constitutional petition in the said court as referred above.

Furthermore, in 2011 the Honourable Lahore High Court in a Constitutional Petition relating to the amendments brought in WWFOrdinance through the Finance Act 2006, and the Finance Act, 2008, has declared the said amendments as unlawful and unconstitutional.The Management Company is hopeful that the decision of the Honourable Lahore High Court, will lend further support to the ConstitutionalPetition which is pending in the Honourable High Court of Sindh.


59


During the year ended June 30, 2014, the Honourable Peshawar High Court on a petition filed by certain aggrieved parties (other thanthe mutual funds) have adjudicated that the amendments introduced in the Workers Welfare Fund Ordinance, 1971 through the FinanceActs of 1996 and 2009 lacks the essential mandate to be introduced and passed through the money bill under the Constitution of Pakistanand hence have been declared as ultra vires the Constitution.

However, without prejudice to the above, the Management Company, as a matter of abundant caution, has decided to record theprovision for WWF amounting to Rs. 451,883 in aggregate including Rs. 266,635 for the half year ended December 31, 2014.

12. TAXATION



13.1 Connected persons / related parties include Primus Investment Management Limited being the Management Company, Central DepositoryCompany of Pakistan Limited being the Trustee, Pak Brunei Investment Company Limited being the holding company of the ManagementCompany, Pak Brunei Investment Company Limited - Employee Provident Fund, other collective investment schemes managed by theManagement Company and key management personnel.


For the periodended from July

18, 2013 to

Issuance of 2,988 units (2013: 50 units)



Issuance of 'Nil' bonus units (2013: 53 units)Issuance of 'Nil' units (2013: 6,937 units)

Pak Brunei Investment Company Limited - Employee Provident Fund

Remuneration of the TrusteeCentral Depository Company of Pakistan Limited - Trustee

Pre IPO profit paymentRedemption of 701,461 units (2013:1,298,539 units)Issuance of 697,268 units (2013 : 2,000,000 units)Pak Brunei Investment Company Limited

Redemption of 1,566,347 (2013: 1,339,999 units)Issuance of 1,755,940 units (2013: 1,681,574 units)Federal excise duty on remuneration of Management CompanySindh sales tax on remuneration of Management CompanyRemuneration of Management CompanyPrimus Investment Management Limited - Management Company

Detail of transactions with connected persons during the period are as follows:13.3

350

December 31,

(Un-audited)---------- Rupees in '000 ----------

(Un-audited)

223 1,283

205 197,741 177,019

78,211 78,374 271

353 251

200,000130,000

169,000135,042

862160138

5

-703

-

--

2013

endedDecember 31,

2014

For the half year


60


13.4 Detail of balances outstanding at the period end with connected persons are as follows:


Remuneration payable to the Management Company 262 192Sindh sales tax payable on remuneration of Management Company 70 36Federal excise duty payable on remuneration of Management Company 504 299Units held - 543,726 units (June 30, 2014: 354,133 units) 65,111 38,296Preliminary and floatation costs payable to Management Company - 2,711Other payable 3 2


Units held - 697,267 units (June 30, 2014: 701,461 units) 83,498 75,856Dividend payable - 2,680Pre IPO profit payable - 271


Remuneration payable to the Trustee 117 58Security deposit 100 100



Units held - 2,988 units (June 30, 2014: 'Nil' units) 258 -

December 31,2014

June 30,2014

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

14. GENERAL

Comparative information has been reclassified and rearranged in this condensed interim financial information for the purpose of betterpresentation. Significant reclassification made is as follows;





PIML ISLAMIC MONEY MARKET FUNDFOR THE HALF YEAR ENDED DECEMBER 31, 2014













62

63

65

66

67

68

69

70

71

72

73

Islamic Money Market FundIMLP

62













Auditors KPMG Taseer Hadi & Co.Chartered AccountantsSheikh Sultan Trust Building No.2Beaumont Road Karachi. 75530


Bankers Habib Bank Limited (Islamic Banking)Bank Al-Falah Limited (Islamic Banking)

Rating AA (f) by PACRA



63

The Board of Directors of Primus Investment Management Limited, the Management Company of Primus InvestmentManagement Limited - Islamic Money Market Fund ("the Fund"), is pleased to present the un-audited condensedinterim financial statements for the six months period ended December 31, 2014.


PIML Islamic Money Market Fund generated a return of 5.82% for the first half (Sept 30, 2014 quarter-end returnof 5.74%). Moreover, the fund has continuously improved upon the monthly returns by an average of 0.45% duringthe period.

During 1HFY2015, the fund maintained average allocation of around 98% of net assets as cash deposits at 'AAA'rated bank. The fund is adequate with liquidity to cash in opportunities that may arise in Shariah complaintsecurities/instruments overtime.

The fund posted a net income of PKR 3.49 million for the period under review, primarily supported by the mark-up on cash at bank. As at December 31, 2014 the net assets were recorded at PKR 122.01 million; recording agrowth of 9.85% and the net asset value (NAV) per unit of the fund was PKR 103.08.

ECONOMIC OUTLOOK






64



ACKNOWLEDGEMENT






65



66



67

Bank balancesDeferred formation costPrepayment and other receivable

Dividend payable

Assets

Total assets

Liabilities

Payable to the Management CompanyRemuneration payable to the TrusteeAnnual fee payable to Securities and Exchange Commission of PakistanAccrued expenses and other liabilities

Total liabilities


Net assets

Unit holders' fund (as per the statement attached)


Net assets value per unit

The annexed notes from 1 to 14 form an integral part of this condensed interim financial information.

(Rupees in '000)

----Number of Units----

(Rupees)

Note

6

7

8

9

10

122,6251,0582,437

119,130

5,0351,711

25772

142,981

116,096754

2,731112,611

111,061

111,061

1,109,064

100.14103.08

1,183,587

122,007

122,007

618-397

2014(Audited)(Unaudited)

201431 December 30 June

44

15162




CONDENSED INTERIM INCOME STATEMENT (UN-AUDITED)FOR THE SIX AND THREE MONTHS PERIOD ENDED 31 DECEMBER 2014

68

Six months Three monthsperiod ended period ended31 December 31 December

2014 2014Note

Income


- Bank balances 4,535 2,393

Expenses

Remuneration to the Management Company 289 151Sindh Sales tax on remuneration of the Management Company 50 27Federal Excise duty on remuneration of the Management Company 46 24Remuneration to the Trustee 87 45Annual fee to the Securities and Exchange Commission of Pakistan 43 22Auditors' remuneration 141 81Fee and subscription 110 55Printing charges 79 62Amortisation of deferred formation cost 294 147Provision for workers' welfare fundBank and settlement charges 5 3

1,215 656

Net income 3,320 1,737

Element of income and capital gains in prices of units sold less those in units redeemed - net 172 211

Net income for the period before taxation 3,492 1,948

Taxation 11 - -

Net income for the period


(Rupees in '000)

3971

3,492 1,948

9.1




69

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)FOR THE SIX AND THREE MONTHS PERIOD ENDED 31 DECEMBER 2014


2014 2014

Net income for the period after taxation 3,492 1,948

Other comprehensive income for the period - -

Total comprehensive income for the period 3,492 1,948


(Rupees in '000)




70

CONDENSED INTERIM DISTRIBUTION STATEMENT (UN-AUDITED)FOR THE SIX MONTHS PERIOD ENDED 31 DECEMBER 2014

Six monthsperiod ended31 December

2014

- Realized gain- Unrealized gains

Represented by:

Undistributed income at end of the period - net

Net income for the period (profit for the period)

Undistributed income at beginning of the period


(Rupees in '000)

155

3,492

3,647

3,647

3,647-




71

CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUND (UN-AUDITED)FOR THE SIX MONTHS PERIOD ENDED 31 DECEMBER 2014

Total comprehensive income for the period (profit for the period)


Net assets value per unit at end of the period

Net assets value per unit at beginning of the period

Net assets at end of the period

units redeemed - netElement of income and capital gains in prices of units sold less those inAmount paid on redemption of 91,259 unitsAmount received on issuance of 165,782 units

Net assets at beginning of the period


2014

(Rupees)

(Rupees in '000)

111,061

16,872(9,246)

(172)3,492

122,007

100.14

103.08




72

CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED)FOR THE SIX MONTHS PERIOD ENDED 31 DECEMBER 2014


2014(Rupees in '000)


Net income for the period 3,492

Adjustments for:Element of income and capital gains in prices of units sold less those in units redeemed - net (172)Amortisation of deferred formation cost 294Return on bank balances (4,535)

(921)

Return received on bank balances 4,1323,211

Decrease in assetsPrepayment 100

Increase / (decrease) in liabilitiesPayable to the Management Company (2,819)Remuneration payable to the Trustee 1Annual fee payable to Securities and Exchange Commission of Pakistan (28)Dividend payable (1,711)Accrued expenses and other liabilities 140

(4,417)

Net cash flows from operating activities (1,106)


Amount received on issuance of units 16,872Amount paid on redemption of units (9,246)Net cash flows from financing activities 7,626

Net increase in cash and cash equivalents during the period 6,520

Cash and cash equivalents at beginning of the period 112,610119,130


Cash and cash equivalents at end of the period




73

NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION (UN-AUDITED)FOR THE SIX MONTHS PERIOD ENDED 31 DECEMBER 2014


1.1 PIML Islamic Money Market Fund ("the Fund") was established under a Trust Deed, dated 15 May 2013, executed between PrimusInvestment Management Limited (a wholly owned subsidiary of Pak Brunei Investment Company Limited) as Management Company, acompany incorporated under the Companies Ordinance, 1984 and the Central Depository Company of Pakistan Limited (CDC) as a Trustee.The Securities and Exchange Commission of Pakistan (SECP) registered the Fund as a Notified Entity on 25 November 2013, underRegulations 44 of the Non Banking Finance Companies and Notified Entities Regulations, 2008 (Establishment and Regulation) Rules.

1.2 The Management Company of the Fund has been licensed by SECP to undertake Asset Management Services and Investment AdvisoryServices as a Non-Banking Finance Company under the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003(NBFC Rules). The registered office of the Management Company is situated at 4th Floor, Horizon Vista, Commercial 10, Block 4, SchemeNo. 5, Clifton, Karachi.

1.3 The Fund is an open end mutual Fund and is listed on the Islamabad Stock Exchange. The Fund offers units for public subscription on acontinuous basis. These can be redeemed by surrendering them to the Fund at the option of the unit holder.

The Scheme is a ‘Shariah Compliant Islamic Money Market Scheme’ as per the criteria for the categorization of open-end collectiveinvestment schemes specified by the Securities and Exchange" Commission of Pakistan. The objective of the Fund is to seek high liquidity,competitive return and maximum possible preservation of the capital for investors by investing in low risk Shariah Compliant securities.

The Scheme is permitted to invest in secured, unsecured, listed, unlisted and privately placed Shariah compliant money market securitiesincluding Sukuks issued by Federal Government, Provincial Government, Local Government and Government Agencies (up to 70% duringthe year based on quarterly average investment calculated on a daily basis), Bank deposits with licensed Islamic Banks / with licensedIslamic windows of conventional banks (up to 100%), any other Shariah compliant structure, instrument or security (up to 100%) andShariah Compliance Security listed or traded outside Pakistan subject to regulatory approvals (up to 30%).

Title to the assets of the Fund is held in the name of Central Depository Company of Pakistan Limited as a Trustee of the Fund.

1.4 The initial public offering of the Fund was from 17 February 2014. As such for this reason, the comparative figures have not been includedin the Condensed Interim Income Statement, Statement of Comprehensive Income, Condensed Interim Distribution statement, Condensedinterim Statement of Movement in Unit Holders' Fund and Cashflow Statement.


Statement of compliance

These condensed interim financial information has been prepared in accordance with the requirements of the International AccountingStandard 34 - Interim Financial Reporting and provisions of and directives issued under the Companies Ordinance, 1984, the Non-BankingFinance Companies (Establishment and Regulations) Rules, 2003 (the NBFC Rules), the Non-Banking Finance Companies and NotifiedEntities Regulations, 2008 (the NBFC Regulations) and directives issued by the Securities and Exchange Commission of Pakistan (SECP).In case where requirements differ, the provisions of / or directives issued by the SECP have been followed.

This condensed interim financial information does not include all the information required for a complete set of annual financial statementsand should be read in conjunction with the latest annual financial statements as at and for the year ended 30 June 2014. However,selected explanatory notes are included to explain events and transactions that are significant.

These condensed interim financial information is being submitted to the unit holders as required under Regulation 38 (g) of the Non-Banking Finance Companies and notified Entities Regulations, 2008 (NBFC Regulations) and are unaudited. However, a limited scopereview has been carried out by the auditors in accordance with the requirements of clause (xix) of the Code of Corporate Governanceissued by the Securities and Exchange Commission of Pakistan.

3. SIGNIFICANT JUDGEMENT AND ESTIMATES

The preparation of condensed interim financial information requires Management to make judgements, estimates and assumptions thataffect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results maydiffer from these estimates.

The significant judgements made by the Management in applying the Fund’s accounting policies and the interim financial informationare the same as those applied in preparing the financial statements as at and for the year ended 30 June 2014.

4. SIGNIFICANT ACCOUNTING POLICIES

The accounting policies and methods of computation followed for the preparation of this condensed interim financial information arethe same as those applied in preparing the financial statements as at and for the year ended 30 June 2014.


74

Amendments to certain existing standards and interpretations on approved accounting standards effective during the period were notrelevant to the Fund's operations and did not have any impact on the accounting policies of the Fund.

5. FINANCIAL RISK MANAGEMENT

The Fund's financial risk management objectives and policies are consistent with those disclosed in the annual audited financial statementsfor the year ended 30 June 2014.

In profit and loss sharing accounts

(Rupees in '000)BANK BALANCES6.

- Local Currency6.1

31 December2014

(Unaudited)

30 June2014

(Audited)

119,130119,130 112,611

112,611

6.1 These represent profit and loss sharing accounts maintained with Islamic branches of banks carrying mark-up rates ranging from 5.10%to 8.25% (30 June 2014: 5.05% to 7.05%) per annum.

7. PREPAYMENT AND OTHER RECEIVABLE

Profit receivable on profit and loss sharing accountPrepaid rating feePrepaid listing fee

8. PAYABLE TO THE MANAGEMENT COMPANY

Remuneration payable to the Management CompanyFormation cost payableInitial deposit on the opening of Fund bank accounts (Paid by the Management Company)

9.

Sindh Sales Tax payable on Management Company's remuneration

Federal Excise Duty payable on Management Company's remuneration

Auditors' remuneration payableProvision for Workers' Welfare FundOther payable

ACCRUED EXPENSES AND OTHER LIABILITIES

1,026 62227 132

5 -1,058 754

52 49100 2,922

10 10162 2,981

15 9

123 76117 113

9.1 112 4130 18

397 257

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

During the year 2011, a single bench of the Lahore High Court (LHC) in a constitutional petition relating to the amendments brought inthe WWF Ordinance, 1971 through the Finance Act, 2006, and the Finance Act 2008, has declared the said amendments as unlawfuland unconstitutional and struck them down. However, in the month of March 2013, a larger bench of the Sindh High Court (SHC) invarious constitutional petitions declared that amendments brought in the WWF Ordinance, 1971 through the Finance Act, 2006, andthe Finance Act, 2008, do not suffer from any constitutional or legal infirmity and overruled a single-member LHC bench judgementissued in August 2011.

However, the Honourable Peshawar High Court on 29 May 2014 on a petition filed by certain aggrieved parties (other than the mutualfunds) have adjudicated that the amendments introduced in the Workers Welfare Fund Ordinance, 1971 through the Finance Acts of1996 and 2009 lacks the essential mandate to be introduced and passed through the money bill under the Constitution of Pakistan andhence have been declared as ultra vires the Constitution.


75


The fund had no contingency or commitment at the period end.

11. TAXATION

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, 2001subject to the condition that not less than 90% of the accounting income for the year as reduced by capital gains whether realised orunrealised is distributed amongst the unit holders. Furthermore, as per regulation 63 of the Non-Banking Finance Companies and NotifiedEntities Regulations, 2008, the Fund is required to distribute 90% of the net accounting income other than unrealised capital gains tothe unit holders. The Fund is also exempt from the provisions of Section 113 (minimum tax) under Clause 11A of Part IV of the SecondSchedule to the Income Tax Ordinance, 2001. Since the management intends to distribute the income earned by the Fund during theyear ending 30 June 2015 to the unit holders in the manner as explained above, accordingly, no provision for taxation has been madein these financial statements.

12. TRANSACTIONS WITH RELATED PARTIES / CONNECTED PERSONS

Connected persons / related parties include Primus Investment Management Limited being the Management Company, Central DepositoryCompany of Pakistan Limited being the trustee, Pak Brunei Investment Company Limited which is the holding company of the ManagementCompany, other funds managed by the Management Company, associated companies (if any) of the management company / holdingcompany of the management company, entities in which the above parties or their connected persons have a material interest, KeyManagement Personnel and includes entities holding 10% or more units of the Fund as at 31 December 2014 or during the period. Italso includes the staff retirement funds of the above related parties / connected person.

12.1 Detail of balances with related parties / connected persons as at period end

Remuneration payable to the Management Company (excluding the Sindh Sales Tax and FED on Management Company remuneration)Sindh sales tax and FED on Management Company remuneration*Formation cost payableInitial deposits in opening of Fund bank accountUnits held: 443 units (30 June 2014: 443 units)

Central Depository Company of Pakistan Limited - Trustee of the Fund

Remuneration payable

Pak Brunei Investment Company Limited - holding company of the Management Company

Units held: 1,043,125 units (30 June 2014: 1,043,125 units) (88.13% of total units in issue as of the period end)Dividend payable

Primus Investment Management Limited - Management Company of the Fund

31 December 30 June2014 2014

(Unaudited) (Audited)

52 49

138 85100 2,922

10 1046 44

15 14

107,528 104,459- 1,711

(Rupees in '000)

* Sales tax and FED is paid / payable to the management company for onwards payment to the Government.


12.2 Detail of transactions with related parties / connected persons during the period Six monthsperiod ended31 December

2014Primus Investment Management Limited - ManagementCompany of the Fund

(Rupees in'000)

Management company's remuneration (excluding Sindh Sales Tax and FED on Management Company's remuneration) 289

Sindh sales tax and FED on Management Company remuneration* 96

Preliminary and floatation cost paid to the Management Company 2,822


76


Remuneration to the Trustee 87Settlement charges 5


Dividend paid 1,711Key Management PersonnelIssue of units: 155,177 units 15,806

2,521145Loss incurred by the key management personnel on redemption

Redemption of units: 24,606 units

12.3 Remuneration payable to the Management Company and the Trustee has been determined in accordance with the provisions of NBFCRegulations and the Trust Deed respectively.

12.4 Purchase and redemption of units of the Fund by related parties / connected persons are recorded at the applicable net asset value perunit. Other transactions are at agreed rates.

13. GENERAL

13.1 These condensed interim financial information are unaudited and have been reviewed by the auditors. Furthermore, the figures for thethree months period ended 31 December 2014 in these condensed interim financial information, where appearing, have not beenreviewed by the auditors.

13.2 This condensed interim financial information is presented in Pak Rupees, which is the Fund's functional and presentation currency. Allfinancial information presented in Pak Rupees has been rounded off to the nearest of rupees.

14. DATE OF AUTHORIZATION OF ISSUE

These condensed interim financial information were authorized for issue on 27 February, 2015 by the Board of Directors of the ManagementCompany.



PIML ISLAMIC EQUITY FUNDFOR THE HALF YEAR ENDED DECEMBER 31, 2014













79

80

82

83

84

85

86

87

88

89

90


Islamic Equity FundIMLP

79













Auditors KPMG Taseer Hadi & Co.Chartered AccountantsSheikh Sultan Trust Building No.2Beaumont Road Karachi. 75530


Bankers Habib Bank Limited (Islamic Banking)Bank Al-Falah Limited (Islamic Banking)



80

The Board of Directors of Primus Investment Management Limited, the Management Company of Primus InvestmentManagement Limited - Islamic Equity Fund ("the Fund"), is pleased to present the un-audited condensed interimfinancial statements for the six months period ended December 31, 2014.


PIML Islamic Equity Fund was launched on 4th March 2014. The fund falls in the Islamic Equity category and offersexposure to Shariah compliant investments. The Net Assets of the fund at December 31, 2014 were PKR 128.27million.

The fund posted a net income of PKR 7.45 million for the period under review. The Net Asset Value (NAV) per unitwas PKR 110.41. On December 31, 2014, the FYTD return of the Fund was 6.89%, compared to the benchmarkYTD return of 6.40%, outperforming by 49 basis points. The Fund has increased its exposure in Equities on a gradualbasis and exposure to equities on December 31, 2014 was 86.96%. The remaining assets are held as cash at bank.

ECONOMIC OUTLOOK





EQUITY MARKET REVIEW

KSE-100 Index earned around 2480 points and posted a growth of 8.4% in 1HFY15. Improving macros and highvisibility of Pakistani market among foreigners led to this impressive performance of the market. Positives duringthe period were successful secondary offerings of planned State owned organizations, issuance of USD 1bn Sukukin international debt market, approval and release of two loan tranhes from IMF worth USD 1.05bn and drasticdecline in international oil prices, which dragged the oil sector of the equity market but impacted positive onexternal account of the country.


81

During the year CY14, the index earned 27% return and became third best performing market in the world andsecond best performing in the regional (after China). Despite earning high return, the Index still remains mostattractive in the region with P/E of 9x and dividend yield of 6.1%.

Foreigners were net buyers of USSD 113.06mn as compared to negative 9.78mn in the corresponding period lastyear. On cumulative basis, net inflow of FIPI for the period CY14 stood at USD 384.65mn close to last year's foreigninvestment of USD 393.39mn.

Despite overall high performance, heavy weight sector specially oil & gas sectors performed negative during thefirst half of the year due to fall in oil prices, however cements, Autos and IPPs performed positive during the periodunder review.

Another reason for Bull Run of the market was easing monetary policy stance head of soft inflation during theperiod. CPI inflation for 1HFY15 stood at 6.1% as compared to 8.9% in the corresponding period last year. Due tolower inflation figures, the SBP reduced the policy rate by 50bps in the monetary policy announced in November,and another 100bps in the recently announced policy in January 2015.

Outlook for performance of market in CY15 seems to be positive as macroeconomic situation is getting betterahead of building forex reserves, declining oil prices, lower inflation and lower discount rate. All this along withhigh earning expectations of the corporates due to plunging costs and improving margins bode well for the equitymarket in the year CY15.



ACKNOWLEDGEMENT






82



83



84

Dividend, prepayment and profit receivableDeferred formation costSecurity deposits

Dividend payable

Assets

Bank balancesInvestments

Total assets

Liabilities

Payable to the Management CompanyRemuneration payable to the TrusteeAnnual fee payable to Securities and Exchange Commission of PakistanAccrued expenses and other liabilities

Total liabilities


Net assets

Unit holders' fund (as per the statement attached)


Net assets value per unit


109,803

109,803

1,063,035

(Rupees in '000)

---- Number of Units ----

(Rupees)

Note

678

9

10

11

14,252111,540

2751,2512,600

129,918

42321

541,152

-1,650

128,268

128,268

1,161,705

110.41

5,382889

8,128

41

181,798

117,9312,6001,402

17892,08421,667

31 December2014

(Unaudited) (Audited)2014

30 June

103.29




CONDENSED INTERIM INCOME STATEMENT (UN-AUDITED)FOR THE SIX AND THREE MONTHS PERIOD ENDED 31 DECEMBER 2014

85

Sindh Sales Tax on remuneration of the Management Company

Net income

Element of income and capital gains in prices of units sold less those in units redeemed - net


Taxation


Income


- Bank balances- Dividend income Gain on sale of investment - net

Unrealised appreciation in the fair value of investments - held for trading - net

Expenses

Remuneration to the Management Company

Federal Excise duty on the remuneration of the Management CompanyRemuneration to the TrusteeAnnual fee to the Securities and Exchange Commission of PakistanAuditors' remunerationListing feePrinting chargesBrokerage expensesAmortisation of deferred formation costProvision for workers' welfare fundBank and settlement chargesOthers



2014 2014

414 1832,453 1,4512,038 1,632

4,498 4,1919,403 7,457

1,128 578196 100180 92113 58

54 28143 58

15 2136 119

36 24151 75153 140154 84

8 62,467 1,364

6,936 6,093

514 734

7,450 6,827

- -

7,450 6,827

(Rupees in '000)Note

7.2

10.1

12




86

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)FOR THE SIX AND THREE MONTHS PERIOD ENDED 31 DECEMBER 2014


2014 2014Note (Rupees in '000)

Unrealised gain on revaluation of 'available for sale' investments - net

Total comprehensive income for the period 8,598 8,074


Other Comprehensive income for the period

Items that will be reclassified subsequently to income statement

Reclassification adjustment relating to gain realized on disposal of investment classified as 'available for sale'


7.3

7.3

7,450

(2,049)

3,197 3,742

(2,495)

6,827




87

CONDENSED INTERIM DISTRIBUTION STATEMENT (UN-AUDITED)FOR THE SIX MONTHS PERIOD ENDED 31 DECEMBER 2014



- Realized gain- Unrealized gains

Undistributed loss at beginning of the period - realised

Undistributed income at beginning of the period - unrealised

Undistributed income at beginning of the period - net

Net income for the period (profit for the period)

Undistributed income at end of the period

Represented by:


(2,361)

3,543

1,182

7,450

8,632

4,1344,4988,632




88

CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUND (UN-AUDITED)FOR THE SIX MONTHS PERIOD ENDED 31 DECEMBER 2014

Total comprehensive income for the period

Net assets at beginning of the period

Amount received on issuance of 554,653 unitsAmount paid on redemption of 455,983 unitsElement of income and capital gains in prices of units sold less those in units redeemed - net

(profit for the period)

Net assets at end of the period

Net assets value per unit at beginning of the period

Net assets value per unit at end of the period




(Rupees)

109,803

59,218(48,837)

(514)

8,598

128,268

103.29

110.41




89

CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED)FOR THE SIX MONTHS PERIOD ENDED 31 DECEMBER 2014



7,450

(4,498)(514)(414)

(2,038)(2,453)

151(2,316)

3952,390

469

(11,772)(15)

(1,375)3

13

(889)(6,478)

59,218(48,837)10,381

(7,415)

21,667

(11,787)

(4,230)

(17,796)

14,252



Adjustments for:

Unrealised gain on revaluation of held for trading investments - netElement of income and capital gains included in prices of units sold less those in unitsProfit on profit and loss sharing accountsGain on sale of investmentDividend incomeAmortisation of deferred formation cost

Profit received on profit and loss sharing accountsDividend income received

Increase in assetsInvestmentsPrepaid listing fee

Increase / (decrease) in liabilitiesPayable to the Management CompanyRemuneration payable to the TrusteeAnnual fee payable to Securities and Exchange Commission of Pakistan

Dividend payable


Paid against redemption of unitsNet cash flow from financing activities

Net decrease in cash and cash equivalents during the period

Cash and cash equivalents at beginning of the period



Net cash flow from operating activities

Received on issuance of units

Cash and cash equivalents at end of the period




NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION (UN-AUDITED)FOR THE SIX MONTHS PERIOD ENDED 31 DECEMBER 2014


1.1 PIML Islamic Equity Fund ("the Fund") was established under a Trust Deed, dated 15 May 2013, executed between Primus InvestmentManagement Limited (a wholly owned subsidiary of Pak Brunei Investment Company Limited) as Management Company, a companyincorporated under the Companies Ordinance, 1984 and the Central Depository Company of Pakistan Limited (CDC) as a Trustee. TheSecurities and Exchange Commission of Pakistan (SECP) registered the Fund as a Notified Entity on 25 November 2013, under Regulations44 of the Non Banking Finance Companies and Notified Entities Regulations, 2008 (Establishment and Regulation) Rules.

1.2 The Management Company of the Fund has been licensed by SECP to undertake Asset Management Services and Investment AdvisoryServices as a Non-Banking Finance Company under the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003(NBFC Rules). The registered office of the Management Company is situated at 4th Floor, Horizon Vista, Commercial 10, Block 4,Scheme No. 5, Clifton, Karachi.

1.3 The Fund is an open end mutual Fund and is listed on Karachi Stock Exchange Limited. The Fund offers units for public subscription ona continuous basis. These can be redeemed by surrendering them to the Fund at the option of the unit holder.

The Scheme is a ‘Shariah Compliant Islamic Equity Scheme’ as per the criteria for the categorization of open-end collective investmentschemes specified by the Securities and Exchange Commission of Pakistan. The objective of the Fund is to achieve long term capitalgrowth by investing mainly in Shariah Compliant listed equity securities.

The Scheme is required to invest in shares of listed companies as advised by the Shariah Advisor (up to 100% of net assets during theyear based on quarterly average investment calculated on a daily basis, with a minimum limit of 70% of net assets), Shariah compliantshort term government securities and cash and cash equivalents not exceeding 90 days maturity (maximum limit being 30% with nominimum limit), unlisted Shariah compliant equity security where the application of listing has been accepted by the stock exchange(maximum limit being 15%) and current and saving deposits with Shariah compliant banks and licensed Islamic windows of conventionalbanks (maximum limit being 30% with no minimum limit). The Scheme can also invest outside Pakistan subject to approval of SECP(maximum limit being 50% or cap of USD 15 million with no minimum limit).

Title to the assets of the Fund is held in the name of Central Depository Company of Pakistan Limited as a Trustee of the Fund.

1.4 The initial public offering of the Fund was from 17 February 2014. As such for this reason, the comparative figures have not been includedin the Condensed Interim Income Statement, Condensed Interim Statement of Comprehensive Income, Condensed Interim DistributionStatement, Condensed Interim Statement of Movement in Unit Holders' Fund and Condensed Interim Cash Flow Statement.


Statement of compliance

These condensed interim financial information has been prepared in accordance with the requirements of the International AccountingStandard 34 - Interim Financial Reporting and provisions of and directives issued under the Companies Ordinance, 1984, the Non-BankingFinance Companies (Establishment and Regulations) Rules, 2003 (the NBFC Rules), the Non-Banking Finance Companies and NotifiedEntities Regulations, 2008 (the NBFC Regulations) and directives issued by the Securities and Exchange Commission of Pakistan (SECP).In case where requirements differ, the provisions of / or directives issued by the SECP have been followed.

This condensed interim financial information does not include all the information required for a complete set of annual financial statementsand should be read in conjunction with the latest annual financial statements as at and for the year ended 30 June 2014. However,selected explanatory notes are included to explain events and transactions that are significant. These condensed interim financialinformation is being submitted to the unit holders as required under Regulation 38 (g) of the Non-Banking Finance Companies andnotified Entities Regulations, 2008 (NBFC Regulations) and are unaudited. However, a limited scope review has been carried out by theauditors in accordance with the requirements of clause (xix) of the Code of Corporate Governance issued by the Securities and ExchangeCommission of Pakistan.

3. SIGNIFICANT JUDGEMENTS AND ESTIMATES

The preparation of condensed interim financial information requires management to make judgements,estimates and assumption thataffect the application of accounting policies and reported amount of assets and liabilities, income and expenses. Actual result may differfrom these estimates.

The significant judgements made by management in applying the accounting policies and the key sources of estimation uncertainty werethe same as those that applied to financial statements as at and for the year ended 30 June 2014.

4. SIGNIFICANT ACCOUNTING POLICIES

The accounting policies and methods of computation adopted in the preparation of this interim financial information are the same asthose applied in preparing the financial statements as at and for the year ended 30 June 2014.

90


5. FINANCIAL RISK MANAGEMENT

The Fund's financial risk management objectives and policies are consistent with those disclosed in the annual audited financial statementsfor the year ended 30 June 2014.

91


6. BANK BALANCES (Unaudited) (Audited)

- Local CurrencyIn profit and loss sharing accounts 6.1 13,123 19,956In current account 1,129 1,711

(Rupees in '000)

14,252 21,667

6.1 These represent profit and loss sharing accounts maintained with the Islamic Branches of banks carrying mark-up rates ranging from5.00% to 8.25% (30 June 2014: 5.05% to 7.05%) per annum.

7. INVESTMENTS

Investments in securities - available for saleInvestments in securities at fair value through profit or loss - held for trading


(Unaudited) (Audited)(Rupees in '000)

7.1 75,998 76,9297.2 35,542 15,155

111,540 92,0847.1 Investments in securities - available for sale

Shares of listed companies - fully paid up ordinary shares of Rs. 10 each unless stated otherwise

At the Acquired Bonus Disposed Holding at Cost as at Market value as % of total % ofbeginning of during the received during during the the end of 31 December at 31 December investment net assets

Sectors / Companies the period period the period period the period 2014 2014(a) (b)

Oil and GasOil & Gas Development Company Limited 33,000 9,000 - 42,000 - - - - -Pakistan Oilfields Limited 15,000 3,000 - 3,000 15,000 8,108 5,690 5.10 4.44Pakistan Petroleum Limited 35,000 2,500 - 12,500 25,000 5,800 4,413 3.96 3.44Pakistan State Oil Company Limited 32,000 15,000 - - 47,000 18,398 16,822 15.08 13.11

32,306 26,925 24.14 20.99Construction and Materials (Cement)D.G Khan Cement 70,000 40,000 - - 110,000 10,064 12,158 10.90 9.48Fauji Cement Company Limited 250,000 - - - 250,000 4,528 6,460 5.79 5.04Lucky Cement Company Limited 32,000 6,000 - 18,000 20,000 6,956 10,006 8.97 7.80Maple Leaf Cement Company Limited 50,000 - - - 50,000 1,482 2,213 1.98 1.73

23,030 30,837 27.65 24.04Personal Goods (Textile)Nishat Mills Limited 35,000 22,500 - - 57,500 6,756 6,957 6.24 5.42

Fixed Line TelecommunicationPakistan Telecommunication Company Limited 100,000 - - - 100,000 3,043 2,303 2.06 1.80

ElectricityK Electric Limited 275,000 - - 275,000 - - - - -Kot Addu Power Company Limited (note 7.1.1) 70,000 5,000 - - 75,000 4,467 5,921 5.31 4.62

4,467 5,921 5.31 4.62Commercial BanksMeezan Bank Limited 20,000 45,000 - - 65,000 2,930 3,055 2.74 2.38

Total investments as at 31 December 2014 72,532 75,998 68 59

Total investments as at 30 June 2014 74,611 76,929

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

Number of shares


92

7.1.1 This includes 9,000 shares of Kot Addu Power Company Limited amounting to Rs. 0.71 million pledged with National Clearing Companyof Pakistan Limited against exposure calls.

7.2 Investments in securities at fair value through profit or loss - held for trading

Shares of listed companies - fully paid up ordinary shares of Rs. 10 each unless stated otherwise

At the Acquired Bonus Disposed Holding at Carrying value Market value / Unrealised % of total % ofbeginning of during the received during during the the end of as at 31 revised carrying appreciation / investment net assets

Sectors / Companies the period period the period period the period December 2014 value as at 31 (diminution)(before December 2014

revaluationfor the year)

ChemicalsFauji Fertilizer Bin Qasim Limited 17,000 3,000 - 20,000 - - - - - -Fatima Fertilizer Company Limited - 10,000 - - 10,000 269 358 89 0.32 0.28Engro Corporation Limited - 10,000 - - 10,000 2,166 2,215 49 0.32 0.28

2,435 2,573 138 0.64 0.56

Construction and MaterialsKohat Cement Limited 500 - - 500 - - - - - -Lafarge Pakistan Cement Limited 300,000 - - 75,000 225,000 3,596 3,904 308 3.50 3.04Maple Leaf Cement Factory Limited 150,000 20,000 - 50,000 120,000 3,621 5,310 1,689 4.76 4.14Pioneer Cement Limited - 40,000 - - 40,000 3,087 3,424 337 3.07 2.67

10,304 12,638 2,334 11.33 9.85

Automobile and PartsPak Suzuki Motor Company Limited 12,000 25,000 - 19,000 18,000 5,936 6,680 744 5.99 5.21Honda Atlas Cars (Pakistan) limited - 10,000 - - 10,000 2,046 1,982 (64) 1.78 1.55

7,982 8,662 680 7.77 6.75

Pharma and Bio TechGlaxoSmithKline 11,000 - - 4,000 7,000 1,162 1,535 373 1.38 1.20Abbott Laboratories (Pakistan) Limited - 2,000 - - 2,000 1,431 1,421 (10) 1.27 1.11Searle Pakistan Limited - 4,000 - - 4,000 1,000 967 (33) 0.87 0.75

3,593 3,923 330 4 3Oil and GasMari Petroleum Company Limited - 7,000 700 7,000 700 279 333 54 0.30 0.26

ElectricityHub Power Company Limited - 70,000 - - 70,000 4,872 5,485 613 4.92 4.28

Personal Goods (Textile)Kohinoor Textile Mills Limited - 55,000 - - 55,000 1,579 1,928 349 1.73 1.50

Total investments at 31 December 2014 31,044 35,542 4,498 29.88 25.98

Total investments at 30 June 2014 13,930 15,155 1,225

Number of shares

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

7.3 Unrealised gain / (loss) on revaluation of available for sale investments are as follows:



Balance at beginning of period 2,318 -Unrealised appreciation for the period 3,197 2,318Appreciation in the value of investments recognised in the profit and loss account on disposal - net (2,049) -Balance as of period end recognised directly into unit holders' fund (difference of column (a) and (b) in above table) 3,466 2,318

(Rupees in '000)


93

8. DIVIDEND, PREPAYMENT AND OTHER RECEIVABLE

Dividend receivable 173 110Profit receivable on profit and loss sharing account 87 68Prepaid listing fee 15 -

275 178

9. PAYABLE TO THE MANAGEMENT COMPANY

Remuneration payable to the Management Company 205 180Formation cost payable 100 1,500Security deposit with Central Depository Company of Pakistan Limited (paid by Management Company) 100 100Central Depository Company of Pakistan Limited charges (paid by Management Company) 3 3Initial deposit on the opening of Fund bank accounts (paid by the Management Company) 15 15

423 1,798


Sindh Sales Tax payable on Management Company's remuneration 58 33

Federal Excise Duty payable on Management Company's remuneration 317 137

Auditors' remuneration payable 118 113Provision for Workers' Welfare Fund 10.1 205 52Charity payable 340 58Payable against purchase of investment 57 4,945Other payable 57 44

1,152 5,382


(Unaudited) (Audited)(Rupees in '000)

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

During the year 2011, a single bench of the Lahore High Court (LHC) in a constitutional petition relating to the amendments brought inthe WWF Ordinance, 1971 through the Finance Act, 2006, and the Finance Act 2008, has declared the said amendments as unlawfuland unconstitutional and struck them down. However, in the month of March 2013, a larger bench of the Sindh High Court (SHC) invarious constitutional petitions declared that amendments brought in the WWF Ordinance, 1971 through the Finance Act, 2006, andthe Finance Act 2008, do not suffer from any constitutional or legal infirmity and overruled a single-member LHC bench judgement issuedin August 2011.

However, the Honourable Peshawar High Court on 29 May 2014 on a petition filed by certain aggrieved parties (other than the mutualfunds) have adjudicated that the amendments introduced in the Workers Welfare Fund Ordinance, 1971 through the Finance Acts of1996 and 2009 lacks the essential mandate to be introduced and passed through the money bill under the Constitution of Pakistan andhence have been declared as ultra vires the Constitution.

However, as per the advice of legal counsel of MUFAP, the stay granted to CIS (as mentioned in the first paragraph) remains intact andthe constitution petitions filed by the CIS to challenge the Workers Welfare Fund contribution have not been affected by the SHC judgment.

As the matter relating to levy of WWF is currently pending in the Court, the Management Company, as a matter of prudence and abundantcaution, has decided to make provision for WWF amounting to Rs. 0.205 million up to 31 December 2014 (30 June 2014: 0.052 million)


94

Had the above recognition not been made, the net assets value per unit of the Fund would be higher by Re. 0.18 / 0.18% (30 June 2014: Re. 0.05 / 0.05%)


The fund had no contingency or commitment at the period end.

12. TAXATION

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, 2001subject to the condition that not less than 90% of the accounting income for the year as reduced by capital gains whether realised orunrealised is distributed amongst the unit holders. Furthermore, as per regulation 63 of the Non-Banking Finance Companies and NotifiedEntities Regulations, 2008, the Fund is required to distribute 90% of the net accounting income other than unrealised capital gains tothe unit holders. The Fund is also exempt from the provisions of Section 113 (minimum tax) under Clause 11A of Part IV of the SecondSchedule to the Income Tax Ordinance, 2001. Since the management intend to distribute the income earned by the Fund during the yearending 30 June 2015 to the unit holders in the manner as explained above, accordingly, no provision for taxation has been made in thesefinancial statements.

13. TRANSACTIONS WITH RELATED PARTIES / CONNECTED PERSONS

Connected persons / related parties include Primus Investment Management Limited being the Management Company, Central DepositoryCompany of Pakistan Limited being the trustee, Pak Brunei Investment Company Limited which is the holding company of the ManagementCompany, other funds managed by the Management Company, associated companies (if any) of the management company / holdingcompany of the management company, entities in which the above parties or their connected persons have a material interest, KeyManagement Personnel and includes entities holding 10% or more units of the Fund as at 31 December 2014 or during the period. Italso includes the staff retirement funds of the above related parties / connected person.

13.1 Detail of balances with related parties / connected persons as at period end

Primus Investment Management Limited - Management Company of the Fund

Remuneration payable to the Management Company (excluding the Sindh Sales Tax and FED on Management Company remuneration)Sindh sales tax and FED on Management Company remuneration*Formation cost payableSecurity deposit with Central Depository Company of Pakistan Limited paid by the Management CompanyInitial deposit on the opening of Fund bank accounts paid by the Management CompanyUnits held: 347,395 units (30 June 2014: 346,892 units) (29.90% of total units in issue as of the period end)Other payable



Remuneration payable 21 18Security deposit 100 100


Units held: 700,000 units (30 June 2014: 700,000 units) (60.26% of total units in issue as of the period end) 77,290 72,304Dividend payable - 889


Units held: 1,628 units (30 June 2014: nil units) 180 -



205 180

375 170100 1,500

100 100

15 15

38,357 35,8313 3

(Rupees in '000)


95

13.2 Detail of transactions with related parties / connected Six months persons during the period period ended

31 December2014

Primus Investment Management Limited - Management Company of the Fund (Rupees in '000)

Management company's remuneration (excluding Sindh Sales Tax and FED on Management Company's remuneration) 1,128

Sindh sales tax and FED on Management Company remuneration* 376Preliminary and floatation cost paid to the Management Company 1,400Issue of units: 397,395 units 37,949Redemption of units: 346,892 units 37,894Gain earned by the Management Company on redemption 1,642


Remuneration to the Trustee 113Settlement charges 5

* Sales tax and FED is paid / payable to the management company for onwards payment to theGovernment.Pak Brunei Investment Company Limited - holding company of the Management Company

Dividend paid 889


Issue of units: 1,628 units 163

Key Management Personnel

Issue of units: 39,368 units 3,754Redemption of units: 39,368 units 3,820Gain earned by the key management personnel on redemption 88

13.3 Remuneration payable to the Management Company and the Trustee has been determined in accordance with the provisions of NBFCRegulations and the Trust Deed respectively.

13.4 Purchase and redemption of units of the Fund by related parties / connected persons are recorded at the applicable net asset value perunit. Other transactions are at agreed rates.

14. GENERAL

14.1 These condensed interim financial information are unaudited and have been reviewed by the auditors. Furthermore, the figures for thethree months period ended 31 December 2014 in these condensed interim financial information, where appearing, have not beenreviewed by the auditors.

14.2 This condensed interim financial information is presented in Pak Rupees, which is the Fund's functional and presentation currency. Allfinancial information presented in Pak Rupees has been rounded off to the nearest of rupees.

15. DATE OF AUTHORIZATION OF ISSUE

These condensed interim financial information were authorized for issue on 27 February, 2015 by the Board of Directors of the ManagementCompany.




Rated “AM3” by PACRA

Office: 4th Floor. Horizon Vista. Commercial 10. Block 4. Scheme 5. Clifton. Karachi. PakistanBoard: .92.21.3529.0006-9 Fax: .92.21.3529.0004 Email: [email protected]

PRIMUSInvestment Management Limited

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