string(70) ‘ Fund Earnings of AIF for the entire year ended 40 June 2010 were bad 7. ‘
Twelve-monthly Report 2010 Askari Salary Fund Invest with AIM A Wholly Possessed Subsidary of Title Inside vision The leading quality investment advisor providing superb returns within a dynamic current market, based on the superior expertise of a fully commited team of professionals who benefit? service to the client? Askari Purchase Management Limited Good people. Sound advice. Great earnings.
contents Account? s Information 01 Administrators? Report goal Fund Managers Report 08 Trustee Are accountable to the Unit Owners 13 Income Statement 19 Statement of Compliance with all the Code of Statement Of Comprehensive Income 20
Business Governance 16 Review Report to the Unit Cases on The Declaration of Conformity with The Guidelines of The Code of Company Governance 18 Independent Auditor? s Are accountable to the Unit Syndication Statement 21 Cash Flow Statement 22 Declaration Of Movement In Unit Holders’ Fund 3 Holders 17 Notes for the Financial Transactions 24 Assertion of Property and Debts 18 Annexure 44 advice about the management organization fund’s details Registered Workplace Askari Investment Management Limited. Suit # 501, fifth Floor, Green Trust Tower, Blue Location, Jinnah Opportunity, Islamabad Archivar Technology Control (Pvt. Limited. Dagia Property: 241-C, G. E. C. H. S i9000 Block-2, Shahrah-e-Quaideen, Karachi Head Office Askari Investment Management Ltd. Mezzanine floor, Bahria Intricate III M. T. Khan Road, Karachi UAN: 111-246-111 Email: [email, protected] com Bankers m Askari Traditional bank Limited d Bank Al-Falah Limited t Royal Traditional bank of Ireland Limited m Bank Al-Baraka Limited m Summit Traditional bank Limited (Formerly: Arif Habib Bank Limited) Board of Directors t Lt. Style. (R. ) Imtiaz Hussain? Chairman l Mr. Shahid Hafeez Azmi l Mr. Muhammad Naseem- FCA m Mr. Mohammad Rafiquddin Mekhari l Maj Gen (R) Saeed Ahmed Khan l Mr. Sufian Mazhar Mr. Tahir Aziz l Mr. Adnan Ahmed Siddiqui? CEO Trustee l CDC Residence, 99-B, Block B, S. M. C. H. H., Main Shahrah-e-Faisal, Karachi Tel: (92-021) 111-111-500 Executive Panel Mr. Mohammad Rafiquddin Mehkari , Chief l Mr. Shahid Hafeez Azmi d Mr. Tahir Aziz l Mr. Adnan Ahmed Siddiqui? CEO Auditors l Ernst , Fresh Ford Rhodes Sidat Hyder Chartered Accountants Progressive Plaza, Beaumont Road P. U. Box 15541, Karachi Tel: (92-021) 3565-0007 l Review Committee Mister. Muhammad Naseem- FCA (Chairman) l Mister. Shahid Hafeez Azmi d Mr. Mohammad Rafiquddin Mekhari l Mister. Tahir Aziz l Chief Financial Official:
Mr. Irfan Saleem Awan, ACA Company Secretary: Syed Shoaib Jaffery Legal Consultant l Haidermota , Firm Barristers-at-Law , Corporate Counselors D-79, Block-5, Clifton KDA Scheme no . 5, Karachi directors? survey 03 ANNUAL REPORT 2010 DIRECTORS? ARE ACCOUNTABLE TO THE UNITHOLDERS On behalf of the Board of Directors of Askari Expense Management Limited (? the Management Company? or? the corporation? ), we could pleased to present the annual report of Askari Salary Fund (? the Pay for? or? AIF? ) combined with Audited economical Statements and Auditors? statement thereon intended for the year concluded June 35, 2010. Economic Overview
Commodity prices have rebounded strongly from their lows of late 2008 and early on 2009, motivated by solid recoveries of industrial production especially in emerging-market financial systems. Recently, universe oil prices again pierced $80 every barrel indicate before coming back to just under $78. The within commodity rates has contributed to moderate acceleration of total consumer cost inflation in many emergingmarket financial systems and perhaps as well to the humble pickup in core pumpiing in many of the countries. Financial policies have been tightened in a number of countries (including China and India) to contain the surge of inflationary pressures.
This will likely slow the pace of economic growth somewhat but is not a major menace to ongoing global restoration. The world petrol price is potentially a more instant concern pertaining to global progress, especially if rates rise above hundred buck per barrel or clip. With significant excess ability available, yet , it seems fair to expect that dramatic raises in essential oil prices will not be driven simply by global supply and demand conditions just before 2012. In Pakistan, the shocks of political uncertainness and the strength crisis features badly influenced the industrial production growth and it dropped to half a dozen years reduced in 2008-09.
The economy recovered a little bit during the last money year following setback of the preceding year due to personal uncertainty in the area and global recession. Limiting electricity deficiency is still a challenge for the federal government in order to boost industrial development output. In addition, the the latest hike in interest rates will not likely bode well with the market. The currency markets is likely to respond negatively to the in the short term. Even though this maximize will help the us government control growing inflation, it is likely to stifle growth and investment, which the economy at the moment needs anxiously.
The government consequently needs to thoroughly balance this kind of sensitive tradeoff between controlling inflation and inspiring investment and growth to be able to bring the economy back on track. KSE100 gained 36% in FY10 as a result of continued financial improvement, hence outshining its peers in the region. Net international inflows had been recorded in USD567mn. Net foreign expense in KSE100 was recorded at 6. 8% of the total market limit (USD installment payments on your 1bn at the conclusion of 06 2010). A longer-term target for the Pakistan? s equities is to be included in the MSCI Emerging Market segments as Pakistan may be placed on review through the 4Q FY11. This will likely increase Pakistan? presence on the worldwide financial marketplaces, thus bringing about increased foreign flows. The actual expected GROSS DOMESTIC PRODUCT growth price for the next fiscal year can be 4. 5%. The sectoral growth rates are expected to be 3. 8% for cultivation, 4. 9% for market and 5. 7% pertaining to services sectors. The money deficit can be estimated to get 4. 0% of GROSS DOMESTIC PRODUCT but the achievement of the financial deficit focus on could be tough because of the ambitious revenue focus on and uncertainty over the external financial inflows arising from options such as Parti Support Account and Kerry-Lugar Act and due to the likely impacts of recent floods in the Country.
Additional, with the Capital Gains Duty (CGT) applied, the market may possibly continue to be lifeless for the next month or two. Performance with the Fund Earnings of AIF for the entire year ended 31 June 2010 were negative 7.
You read ‘Promotion Mix of Pepsi’ in category ‘Papers’ 09% with the finance size in Rs 1 . 3 billion dollars as compared to Rs 3. one particular billion this past year. The unfavorable performance and loss towards the Fund is mainly attributable to the provisions to get diminution in value of debt securities and other resources including TFCs, Sukuks, Term Finance Deals, Leased Advantage and Real estate (acquired against settlement of investments) because of their non performing status and/or the value impacts.
Additional during the year, the Fund endured additional loss due to sale for certain TFCs at less than carrying worth in order to satisfy redemption asks for of the Product Holders of the Fund. The massive decrease in fund size along with the depressing financial scenario resulted in deterioration of credit quality of profile with increase in non-performing and/or nonearning property. The Table of Administrators of the Supervision Company features approved to categorize this kind of Fund while Aggressive Fixed Income Scheme.
Necessary legal and step-by-step formalities are being completed to implement this decision. GROSS ANNUAL REPORT 2010 04 Yesteryear year turned out to be a testing year pertaining to Askari Profits Fund, nevertheless we believe which the management has the ability to bring about great change in the Fund? t performance with its innovative ideas and targeted objective centered fund administration efforts. The asset allowance of the Finance as of 30 June 2010 was the following: Asset Allocation TFCS as well as SUKUK S, 7 seven percent TFAs. 15% Lease Property, 8% Real estate, 8% Cash , Variation, 1%
Other Assets, 2% The asset allocation is based on net possessions. Details necessary by the Code of Company Governance: AIF was listed on the Lahore Stock Exchange (Guarantee) Ltd on Apr 13, 06 and Askari Investment Management Limited, as the Management Company, is devoted to observe the Code of Company Governance because applicable. The main points as required by the Code of Corporate and business Governance regarding the pattern of unit keeping of the Finance as in June 40, 2010 is as follows (Also refer to Annexure? I towards the financial statements): Category
Volume of unit slots Number of products held % of total Associated companies/Related Parties: Askari Investment Management Limited (Management Company) one particular 242, 927 1 . seventy six Askari Bank Limited (Holding company with the Management Company) 1 twelve, 073, one-hundred and eighty-eight 72. 81 Askari Concrete Limited (Group Company) one particular 13, 075 0. 2009 Askari Traditional bank Employees’ Provident Fund (A fund associated with the Having Company) one particular 301, 376 2 . 18 President Askari Bank Limited Fund (A fund relevant to the Holding Company) 1 82, 434 0. sixty 2 1, 534, 071 11. 09 1 246 , 151 1, 587, 127 10. 47 159 3, 834, 444 95 Commercial banking companies Insurance company Other folks ANNUAL SURVEY 2010 05 The Table of Owners of the Supervision Company claim that: 1 . 2 . 3. 5. 5. six. 7. 8. The financial statements present fairly the statement of affairs, the results of operations, funds flows and the changes in device holders? account. Proper literature of accounts have been taken care of by the Fund. Appropriate accounting policies had been consistently used in the planning of the economic statements and accounting estimates are based on sensible and advisable judgment.
Relevant International Accounting Standards, because applicable in Pakistan, supply of the Non-Banking Finance Companies (Establishment and Regulation) Rules 2003, Non Bank Finance Companies and Notified Entities Regulations 08 (NBFC Rules, 2008), requirements of the trust deed and directives given by the Securities and Exchange Commission of Pakistan had been followed inside the preparation with the financial transactions and any deviation presently there from continues to be disclosed. The program of internal controls is sound in design and has been effectively implemented and monitored.
You will discover no significant doubts after the account? s capability to continue as being a going matter. There has been no material starting from the best practices of business governance, because detailed inside the listing rules. As detailed in note 23 to the financial statements, the Management Company pursuing the prudent way made a provision pertaining to Workers Welfare Fund (WWF) levy during the year. However , the matter of applicability of WWF on shared funds can be under consideration by various amounts, including Ethical Sindh High Court, Shared Funds Affiliation of Pakistan and the Ministry of Labor and Time.
The payment or reversal of the said amount of provision is dependant on a final decision about the applicability on this levy upon mutual funds. Trades in the units of the Fund by Directors, CEO, CFO and Company Admin of the Administration Company their very own spouses and minor children have been unveiled in Be aware 24 towards the financial claims. Meetings from the Board of Directors of the Management Firm were held once in every 1 / 4. During the year five board group meetings were held. Presence at these kinds of meetings was as follows: Group meetings attended Number of gatherings held during appointment Lt. Gen. (R. ) Imtiaz Hussain , Chairman 4 5 Maj.
Gen. (R. ) Saeed Ahmed Khan 4 a few Mr. Mohammad Rafiquddin Mehkari 5 five Mr. Muhammad Naseem a few 5 Mr. Shahid Hafeez Azmi a few 5 Mister. Tahir Aziz 5 5 Mr. Sufian Mazhar* you 3 Mr. Saeed Aziz Khan- Ex lover CEO** 4 4 Mister. Adnan Ahmed Siddiqui- CEO*** 1 you *The Securities and Exchange Commission of Pakistan authorized appointment of Mr. Sufian Mazhar because director from the company upon January 30, 2010. ** Mr. Saeed Aziz Khan had retired from the office of Chief Executive Officer with result from May well 31, 2010. *** Mister. Adnan Siddiqui was equiped as Ceo on Summer 01, 2010 after before approval of Securities and Exchange Commission of Pakistan.
ANNUAL STATEMENT 2010 summer Key functioning and economic data from the Fund to get prior years since beginning is as employs: Jun-10 Jun-09 Jun-08 Jun-07 Jun-06 , , , , , , , , , , , , – Rupees , , , , , , , , , , , , , -Net Possessions as in June thirtieth 1, 312, 868, 229 3, 049, 420, 048 8, 346, 972, 640 9, 399, 362, 925 1, 163, 679, 611 Net Advantage Value per unit as on 06 30th 94. 90 102. 14 103. 98 111. 74 104. 98 Net (loss)/ cash flow for the year/ period (134, 398, 403) 137, 287, 852 1, 019, 929, 464 982, 145, 998 fifty five, 216, 301 392, 798, 236 one particular, 688, 176, 556 49, 783, 007 , *Dividend Distribution through the ear/period , *This excludes dividend distribution for any yr approved following the year-end. As a result of accounting lack of the Pay for for the season, no dividend was released for the season ended Summer 30, 2010. Future Prospect Going forward, taking into consideration the monetary scenario as well as the impact of recent massive amounts, external runs are going to be a key factor in the economic restoration of the Country. Funds coming from Friends of Democratic Pakistan (FoDP), Kerry-Lugar Bill and other bilateral and multilateral assistance, can provide SBP room to get quantitative reducing which may increase private sector credit off take.
The fiscal shortage target of 4. five per cent is likely to be breached by the government under the current scenario. Therefore, the government may be forced to reduce the PSDP and also power and also other subsidies. There exists likely to be a rise in government credit from the exclusive sector, that can result in decreased liquidity in the market. Moreover, with rising inflationary pressures typically due to the impact of recent floods, the state of hawaii Bank is definitely expected to preserve a tight economic stance.
Around the fixed income front, almost all of the corporate debt was updated during the previous year and is also expected to be classified while performing personal debt in the current 12 months. This can have a positive impact on the cash holding TFCs / Sukuks in their stock portfolio. Recent massive amounts and postpone in the external flows may result in higher government borrowings specifically in the form of shorter duration Islamic instruments which can give Islamic mutual money more space to diversify all their portfolio, cut short their duration and improve the level of credit. The Company? technique going forward is to capitalize on the best offered opportunities arising in the market while maintaining its give attention to the credit quality in the portfolio through active finance management with an endeavor to achieve targeted objectives in the Fund. Auditors The Panel of Directors on the advice of the Review committee offers approved the appointment of M/s A. F. Ferguson , Co.? Chartered Accountants as the auditors with the Fund to get the economical year stopping June 31, 2011 be subject to completion of required legal and procedural requirements in this respect.
Acknowledgement We would like to participate in our co-workers on the Board, management staff and employees of the Business, in saying thanks to first and foremost the investors for their vote of confidence in Askari Income Fund. On top of that we would like to thank Askari Bank Limited, the Securities and Exchange Commission of Pakistan, the Trustee from the Fund plus the Stock Exchange for their continued direction and support.. For and Behalf in the Board of Directors of the Management Organization _____________________ Ceo _____________________ Chief _____________________
Representative fund manager? s survey ANNUAL STATEMENT 2010 ’08 FUND ADMINISTRATOR? S SURVEY OVERALL ECONOMICAL SCENARIO Global Outlook The global economy is definitely moving into a much more mature stage led by growing household demand. To date, the doubt about the sustainability of fiscal positions in several high-income European countries has already established limited impacts on producing countries. Stock markets in highincome and emerging economies have restored much of the worth they misplaced, and most developing-country currencies include regained their very own pre-crisis levels against the buck, with some having appreciated.
Monetary markets possess recovered using their lows last season, industrial creation and trade continue to increase rapidly, although conditions continue to be tight and banks may be exposed to personal debt in EUROPEAN countries. International capital runs to developing countries will be projected to get to about a few. 5 percent of their GDP in 2012, up from 2 . 5 percent in 2009. Growth prospects stay uncertain due to situation in Europe, however, developing countries are expected to lead the recovery with growth costs of around 6 percent.
High-income countries’ growth is definitely expected to speed up from regarding 2-2. several percent completely to among 2 . a few and installment payments on your 7 percent in 2012. Although the global financial crisis has had important outcomes for economical activity in South Asia, that influence was a smaller amount pronounced as compared to all other growing regions save East Asia. Regional economic activity benefitted from limited exposures towards the subprime marketplaces and global banking systems-as the region’s financial markets are less included than elsewhere-and relatively strong capital inflows, which increased as a share of GROSS DOMESTIC PRODUCT.
Economic Bring up to date The International Finance Cooperation assigned Pakistan the eighty fifth rank vis a am?iais China’s 89th and India’s 133rd amongst countries with regards to , easy doing company in 2010. Pakistan’s improved macro economic principles was as well reflected in Moody’s outlook upgrade to , Stable’ from , Negative’ that kicks off in august 2009, whilst S upgraded Pakistan’s score to , B-/Stable’ coming from , CCC+/Developing’ on the 24th of the same month. As a result of the commodity super spike and poor macro economic governance Pakistan strike the macroeconomic trough in FY09.
GROSS DOMESTIC PRODUCT reduced to 2 . 0%, compared to the last five years average of 6. 4%, C/A shortfall peaked to US$13. 87bn in FY08, compared to US$9. 39 in FY09, a decline of 32. 6% Year on Year (YoY). The shortage has been brought down additional. Current air-conditioning deficit to get FY10 stood at USD 3. 5bn (1. 96% GDP) against USD being unfaithful. 3bn (5. 56% GDP) in FY09, recording a massive drop of 62% Y/Y. CAD to get the year was much lower than IMF’s previous projection of three. 8% of GDP and SBP’s estimate of 2. 2-2. 8% of GDP.
Shrinkage in the current account deficit was helped by a 10% decrease in trade shortfall which fell to CHF 11. 4bn in FY10, or 6th. 4% GDP as compared to 7. 6% of GDP in FY09. Country’s total forex reserves (as on September 2, 2010) stood in USD sixteen. 8bn, whilst reserves kept by the central bank come to USD 12. 95bn. Besides, build up of FX supplies also shown in M2 growth, with growth in NFA accounting for 24% of development in budgetary aggregated during FY10. Foreign Direct Expenditure shrunk 41% Y/Y to USD 2 . 2bn FY10, on top of a 31% land witnessed in FY09.
Meanwhile, in terms of sector-wise share in FDI, the balance tilted in support of oil/gas search and foodstuff sectors, whilst telecom and financial services, that were major FDI recipients current past, noticed their talk about decrease in FY10. On the other hand, net inflow of USD 588mn in fairness portfolio purchase in FY10, against a net output of USD 511mn in FY09, was your redeeming take into account an otherwise discouraging financial account performance. Cash supply grew by 12. 46% in FY10 in comparison to only being unfaithful. 56% in FY09 generally on account of 1) 12. 4% growth in deposit basic against only 7. % last year in line with increased monetary activity, and 2) 12. 4% growth in forex in blood flow outside the bank system suggesting higher fluidity. On the asset side, the provision was influenced by bigger demand by government due to its budgetary support coupled with increased borrowing simply by private sector to meet the rising seed money requirements. Client price index (CPI) experienced crept to 11. 73% for the complete FY10, much higher than government’s single number target. The headline Buyer price index (CPI) sunken to 12. 69% YoY basis in Jun’10, when compared with 13. 07% YoY during May’10.
Main inflation, which usually according to the IMF, should be the key in determining any cut in the discount level, increased by simply 10. 4% YoY in Jun’10. Key inflation is seen to be over a decreasing pattern since Feb’09 when it got peaked to 21. 10% YoY. 09 ANNUAL RECORD 2010 Overall performance of Pakistan Markets KSE100 closed up 36% in FY10 for the back of low base and continued monetary improvement , earmarking itself as one of the best performing equity market segments. Net overseas inflows had been recorded by USD567mn whilst OGDC, the star performer, gained 79% for 12 months and only contributed ~1, 125 take into account the index.
Domestic buyers were seen within the selling side, by virtue of which usually foreign shareholders are now approximated to take into account over 28% of free float weighted industry capitalization of Pakistan equities. Moreover Pakistan’s equities have got outperformed MSCI FM simply by 40% during FY10. Net foreign purchase in KSE100 stood for 6. 8% of the total market limit (USD installment payments on your 1bn right at the end of Jun10). Despite healthy and balanced foreign moves volumes remained thin especially in the months of May-Jun10 for the back of new taxes made on the community bourses and liquidity worries.
KSE100 volumes touched the bottom of 36. 6mn on Jun21’10 as neighborhood investors continued to be concerned over CGT imposition and profits disclosure to tax government bodies. Retail cash has been the many effected as investors include diverted all their investments by equity industry till even more clarity occurs disclosure regulations. Credit risk premium about 10yr provides reflected by spread on credit standard swap offers reduced drastically to 705bps in Jun10 from a peak of 2, 336bps in Apr09 which highlights restored investor’s assurance in the simple economic recovery.
A longer-term theme intended for the Pakistan’s equities is definitely the inclusion in the MSCI Emerging Markets as Pakistan may be put on assessment during the 4Q FY11. Resultantly Pakistan’s visibility on the intercontinental radar display would improve leading to increased foreign moves. The sluggish performance in the equity marketplace during 4Q FY10 may very well be reversed mainly triggered by improvement in liquidity in conjunction with positive earnings surprise. Furthermore with KSE100 Index trading at a wide discount of 38% to its colleagues, we believe there is strong likelihood of Pakistan to outperform many regional market segments in FY11.
In Nov 2008, the State Bank of Pakistan increased the low cost rate by 200 basis points to 12-15 percent coming from 13 percent amid substantial government borrowings, persistent require pressures, recurrent hike in core inflation and extending current account debt. Later on in January 2010, reducing of inflationary pressure helped the central bank to slash it is discount price by two hundred fifity basis points to 12. 5% ANNUAL REPORT 2010 10 FUND EFFICIENCY Askari Income Fund (AIF) is an open-ended cash flow Fund, used interest bearing instruments with no exposure to wall street game.
The objective of the Fund is usually to provide buyers with a wide range of advantage classes so as to diversify Fund risk also to optimize potential returns. As a result even an investor with merely one unit will get invested in to spread orders, a range of debt tools, short maturity securities and certificates of investment. This kind of Fund also offers investors the opportunity to exit for short detect. Benchmark from the Fund is usually 3-Month KIBOR rate is a benchmark intended for the Finance. Pursuant for the Securities , Exchange Commission payment of Pakistan’s (SECP) Round 7 farrenheit 2009, the Board of Directors of the management organization decided to categorise this Pay for as a great , Extreme Income Scheme’. The caractère documents from the Fund are in the process of being altered to include the necessary amendments required therein. AIF’s returning for the season ended Summer 2010 was negative 7. 09% and so the Finance underperformed against its standard. The Pay for size dropped to Rs. 1 . a few billion in June 2010 from Rs. 3. you billion a year ago. General Data Minimum Investment Sales Weight Management Payment Risk Standard Management Business Rating
Account Size and Growth a 30 06? 10 Rs 1, 313 mn Rs 94. 85 Fund Size NAV Fund Performance Returning AIF Benchmark* *Monthly Average 1-Month -106. 37% doze. 26% 3M KIBOR 6M KIBOR CPI (YoY) a 30 Summer? 09 Rs 3, 049 mn Rs 102. 16 FY10 -7. 09% 12. 33% Portfolio Details Weighted Average Maturity Standard Deviation* *Monthly Basis Economic Info Rs. a few, 000 Upto 2 . 0% front-end on Class W , M units, Upto 1 . 0% back-end on Class C , Deb units 1 ) 5% p. a. Low 3-Month KIBOR AM3 by simply PACRA (Feb-2010) 3. 49 years 1 ) 67% Sep 09 12. 22% 12. 30% twelve. 12% December 09 12. 57% doze. 62% twelve. 52% Scar 10 2 . 28% doze. 35% 12. 91% Jun 10 12. 23% doze. 32% doze. 69% The adverse performance of the Pay for can be attributed to the value adjustments of “other portfolio assets” including leased asset, Term Finance Agreements (TFAs), properties and nonperforming Term Finance Certificates (TFCs) and Sukuks. The leased asset and houses were obtained in arrangement of positions and records of expenditure with an NBFC. TFCs of Dewan Cement Limited and New Allied Electronic devices Industries (Private) Limited were already labeled as non-performing as of June 30, 2009.
Agritech Limited, Azgard Nine Limited and Maple Leaf Cement Manufacturer Limited likewise defaulted on the repayments and were classified as nonperforming during the year. Furthermore, the rented asset and TFA of Saudi Pak Leasing Firm Limited had been classified while nonperforming during the year in accordance with the Fund’s provisioning policy pertaining to nonperforming exposures. The supervision is actively involved and it is monitoring numerous recovery types of procedures and reorganization, rearrangement, reshuffling arrangements together with the issuers of instruments and counterparties.
Additional, wherever possible, restructurings have been decided in the best interest from the Fund. The Fund got entered into asking for arrangement in January apr, 2010 to fulfill redemption requests. However , because of liquidity limitations and redemption requests during the period, these types of borrowings had been rolled above for a period of more than three months thereby exceeding beyond the limit of 90 days prescribed inside the NBFC , Notified Agencies Regulations, 08. These borrowings have been completely repaid about July twenty-three, 2010. For unit having pattern with the Fund, you should refer to Annexure , My spouse and i to the economical statements of AIF.
Additional, persuant to circualr 18 of 2010 issued by the SECP upon July 07, 2010, the detail of noncompliant possessions held by the Fund is usually disclosed in note on the lookout for. 5 with the financial claims of the Pay for. ANNUAL RECORD 2010 10 ASSET ALLOCATION AS OF 06 30, 2010 Properties, 7% TFCs / Sukuks 69% TFAs, 14% Leased Property, 7% Other Assets, 2% Cash , Cash Variation, 1% *as a percentage of gross assets ASSET PORTION AS OF JUNE 30, 2009 Properties, 4% TFAs, 17% TFCs / Sukuks 65% Leased Property, 4% Money , Cash Equivalents, seven percent *as a portion of low assets Various other Assets, 3% financial transactions 13 ANNUAL REPORT 2010 ANNUAL REPORT 2010 13
STATEMENT OF COMPLIANCE WITH THE CODE OF CORPORATE GOVERNANCE FOR THE ENTIRE YEAR ENDED 06 30, 2010 This statement is being provided in compliance with the Code of Business Governance (? the Code? ) included in the Listing Polices of Lahore Stock Exchange where Askari Cash flow Fund (the Fund) is listed. The purpose of the Code is to establish a body work great governance, where by a outlined entity can be managed in compliance together with the best practices of corporate governance. Askari Expenditure Management Limited (the Administration Company) which in turn manages the affairs with the Fund features applied the principles contained in the Code in the following manner:. The Management Organization encourages rendering of impartial nonexecutive administrators. Presently, all of the board associates are nonexecutive directors other than Chief Executive Officer. 2 . The directors of the Administration Company have confirmed that non-e of them is portion as a director in more than ten shown companies, including the Management Business. 3. Each of the directors of the Management Firm have verified that they are authorized as people and non-e of them has defaulted in payment of any loan to a bank company, a DFI or an NBFC or, like a member of an investment exchange, continues to be declared being a defaulter by simply that stock exchange.
No movie director of the Administration Company or his spouse is engaged in the business of stock brokerage. 4. The three year term of office of previous Board of Directors was completed and new board comprising of seven company directors were elected for following term of three years in the past year. Further, during the year, the CEO had resigned with effect from May possibly 31, 2010 and the new CEO was appointed by board on June 01, 2010 following obtaining previous approval via Securities , Exchange Commission rate of Pakistan. 5. The Management Company has ready a?
Statement of Integrity and Business Practices? that can be signed by simply all the owners and employees of the Supervision Company. six. The Supervision Company features adopted a vision as well as mission statement and total corporate technique and formulated significant guidelines of the Fund which have been approved by the Panel. 7. All of the powers with the Board have been duly practiced and decisions on materials transactions, which include appointment and determination of remuneration and terms and conditions of employment from the CEO have been taken by the Board. almost 8.
The gatherings of the Panel were presided over by the Chairman, and his absence, by a representative elected by Board for this purpose and the Table met at least one time in every quarter during the year. Crafted notices with the meetings in the Board, along with plan and functioning papers, were circulated at least 7 days before the gatherings and any kind of exceptions thereto which were accomplished specifically with approval from the Board. The minutes with the meetings had been appropriately documented and distributed. 9. The Board set up an positioning course due to its directors to appraise them of their duties and responsibilities.
Furthermore, the directors are conversant from the relevant laws and regulations applicable to the Management Organization, its policies and procedures and dotacion of memorandum and articles or blog posts of connection and are aware of their obligations and responsibilities. 10. During the year, the Management Company offers appointed a brand new CFO. The remuneration and terms and conditions of the employment of CFO and Company Admin have been approved by the Panel. 11. The Directors? Statement has been well prepared in conformity with the requirements of the Code and totally describes the salient matters required to become disclosed. TOTAL ANNUAL REPORT 2010 15 12.
The economic statements of the Fund had been prepared in accordance with the permitted accounting criteria as suitable in Pakistan and were duly endorsed by the CEO and CFO before approval of the Plank. 13. The directors, CEO and management do not carry any involvement in the units of the Pay for other than those disclosed inside the Directors? Record. 14. The Management Organization has complied with all different corporate and financial credit reporting requirements from the Code according to Fund. 12-15. The Plank has shaped an Review Committee. It comprises of several members, all whom happen to be non-executive administrators including Leader of the Committee. 6. The meetings of Audit Committee were held once in every quarter and prior approval of interim and final results with the Fund is essential by the Code. The Table has accepted terms of reference of the Audit Committee. 17. The Management Business has established enough procedures and systems to get related get together transactions vis-a-vis the charges method for related party orders. All the related party ventures are placed prior to Audit Committee and the Table of Administrators for their review and acceptance. 18. The Management Business has outsourced the internal taxation function to Deloitte M. Yousaf Adil Saleem , Co.
Chartered Accountants who are considered suitably qualified and experienced for the purpose and are familiar with the policies and types of procedures of the Pay for. 19. The statutory auditors has proved that they have been given a satisfactory score under the Top quality Control Review Program of Institute of Chartered Accountancy firm of Pakistan (ICAP), that they or any with the partners with the firm, their particular spouses and minor kids do not carry units as well as share in the Fund or perhaps its Managing Company and that the firm and all its partners are in compliance with International Federation of Accountants (IFAC) recommendations on Code of Values as followed by the ICAP. 0. The statutory auditors have not been appointed to provide other companies to the Supervision Company other than in accordance with the listing regulations plus the auditors include confirmed they may have observed IFAC guidelines in this regard. 21. We confirm that all the other material principles contained in the Code have been complied with. ____________________________ Chairman KARACHI: 18 AUG 2010 ____________________________ CEO TOTAL ANNUAL REPORT 2010 6 ASSESSMENT REPORT TO THE MACHINE HOLDERS ON THE STATEMENT OF COMPLIANCE WITH ALL THE BEST PRACTICES FROM THE CODE OF CORPORATE GOVERNANCE We have reviewed the Assertion of Compliance with the best practices contained in the Code of Business Governance (the Code) made by the Panel of Company directors of the Supervision Company of Askari Income Fund (the Fund) to comply with your chance Regulations in the Lahore Stock Exchange where the Fund is listed.
The responsibility for compliance with the Code is that of the Board of Directors from the Management Firm of the Fund. Our responsibility is to review, to the level where such compliance can be objectively tested, whether the Statement reflects the status in the Management Industry’s compliance with all the provisions of the Code in regards to the Pay for and statement if it would not. A review is restricted primarily to inquiries in the Management Company’s personnel and review of different documents made by the Administration Company to comply with the Code.
As part of our examine of financial statements, we are necessary to obtain a comprehension of the accounting and interior control systems sufficient to plan the audit and develop a highly effective audit way. We are not necessary to consider whether the Board’s statement upon internal control covers almost all risks and controls, or to form an opinion on the efficiency of this kind of internal handles, the Administration Company’s corporate and business governance techniques and risks.
Further, Sub-Regulation (xiii a) of Real estate Regulation thirty five of the Lahore Stock Exchange needs the Supervision Company to place before the Table of Directors for their thought and authorization related get together transactions, differentiating between ventures carried out in terms equivalent to those that dominate in arm’s length deals and ventures which are not executed by arm’s size price, recording proper justification for applying such different pricing system.
Further, almost all such deals are also needed to be independently placed prior to Audit Committee. We are simply required and still have ensured conformity of necessity to the extent of authorization of related party ventures by the Plank of Owners and placement of such deals before the Examine Committee. We now have not carried out any method to determine perhaps the related party transactions were undertaken at arm’s span price or perhaps not.
Depending on our assessment, nothing has come to our focus, which causes all of us to believe that the Statement of compliance does not appropriately indicate the Management Company’s compliance, in all material respects, with the best practices included in the Code in regards to the Finance for the season ended 35 June 2010. KARACHI: 18 AUGUST 2010 CHARTERED ACCOUNTANCY FIRM 17 GROSS ANNUAL REPORT 2010 ANNUAL STATEMENT 2010 18 ASKARI PROFITS FUND AFFIRMATION OF ASSETS AND DEBTS AS BY 30 SUMMER 2010 Take note 2010 2009 , , , , , -Rupees, , , , , – Possessions 9, 776, 325 two hundred, 950, 000 1, 011, 880, 472 217, 987, 640 thirty-three, 413, 273 243, 827, 474, 251, 537 239, 166, 833 534, 1000, 000 a couple of, 092, 078, 513 263, 370, 344 82, 274, 475 743, 830 three or more, 211, 633, 995 64, 039 147, 574, three hundred and fifty 1, 738, 502 199, 103 you, 871, nine hundred 9, 935, 414 908, 352 150, 000, 000 3, 572, 020 321, 337 four, 129, 031 3, 283, 207 161, 383, 308 162, 213, 947 Net assets you, 312, 868, 229 3, 049, four-twenty, 048 Device holders’ pay for 1, 312, 868, 229 3, 049, 420, 048 13, 834, 444 29, 855, 979 94. 90 102. 16 7 8 9 twelve 11 doze Bank amounts Placements with banks and other financial institutions Purchases Assets attained in negotiation of purchases Deposits and other receivables Deferred formation expense Total resources Liabilities Payable against redemption of devices
Borrowing underneath repurchase agreement Remuneration payable to the Administration Company Remuneration payable to the Trustee Total annual fee payable to the Securities and Exchange Commission of Pakistan Built up and other debts 13 14 Total liabilities Number of products in issue Net property value per unit The annexed paperwork from 1 to up to 29 form an integral part of these economic statements. For Askari Investment Management Limited (Management Company) _____________________ Chief Executive Officer _____________________ Leader _____________________ Overseer ANNUAL STATEMENT 2010 19 ASKARI PROFITS FUND CASH FLOW STATEMENT
PERTAINING TO THE YEAR FINISHED 30 JUNE 2010 Notice 2010 2009 , , , , , -Rupees, , , , , – Profits Net damage on assets at good value through income statement: Net reduction on sale of investments Net unrealized reduction on revaluation of purchases 17 (124, 989, 197) (237, 522, 319) (362, 511, 516) 306, 276, 192 22, 022, 456 649, 591, 015 50, 219 1, 995, 400.00 (121, 800, 414) (29, 402, 015) 16 (20, 079, 386) (215, 820, 863) (235, 900, 249) (18, 319, 756) 270, 805, 412 37, 438, 002 several, 495, 866 1, 871, 900 500, 003 23, 774 31, 000 2 hundred, 000 several, 149 132, 106 13, 154, 961 140, 500 665, five-hundred 487, 671 2, 550, 000 forty one, 249, 969 2, 745, 757 295, 730 104, 996, 388 9, 377, 780 five, 625, 185 4, 129, 031 five-hundred, 000 168, 236 45, 000 90, 000 56, 463 194, 612 51, 547, 367 1, 006, 536 575, 000 169, 650 twenty-two, 700 133, 517, 560 (134, 398, 403) Go back on lender balances, positions and purchases Income upon CFS ventures Income in assets bought in negotiation of assets Element of cash flow / (loss) and capital gain / (loss) a part of prices of units released less these in devices redeemed , net 15 137, 287, 852 Expenditures Remuneration with the Management Firm Remuneration in the Trustee Annual fee in the Securities and Exchange Commission of Pakistan Amortization of deferred formation cost
Broker commission Real estate fee Rating fee Custodian fee Traditional bank and pay out charges Economical charges about borrowing beneath repurchase contract Legal and professional expenses Auditors? remuneration Printing and stationery Dotacion against non-performing placements Supply against property acquired in settlement of investments Supply for contribution to Workers’ Welfare Fund Others Net (loss) as well as income to get the year 18 19 20 21 almost eight. 2 twenty two 23 The annexed paperwork from one particular to twenty nine form an important part of these monetary statements. Pertaining to Askari Expense Management Limited (Management Company) ____________________ Ceo _____________________ Leader _____________________ Representative ANNUAL RECORD 2010 twenty ASKARI SALARY FUND ASSERTION OF COMPREHENSIVE INCOME TO GET THE YEAR CONCLUDED 30 JUNE 2010 Net (loss) / income for the year 2010 2009 , , , Rupees , , -(134, 398, 403) Other comprehensive income 137, 287, 852 , , Total comprehensive (loss) / income pertaining to the year (134, 398, 403) 137, 287, 852 The annexed paperwork from you to up to 29 form an important part of these economic statements. Pertaining to Askari Expenditure Management Limited (Management Company) _____________________
Chief Executive Officer _____________________ Chairman _____________________ Director ANNUAL RECORD 2010 21 years old ASKARI SALARY FUND SYNDICATION STATEMENT PERTAINING TO THE YEAR CONCLUDED 30 JUNE 2010 2010 2009 , , , , , -Rupees, , , , , – Undistributed profits brought forwards 285, 597, 964 (221, 776, 148) 63, 821, 816 Realized Unrealised Division Nil (2009: Rs. 2 . 99/- per unit declared on several July 2008) , Cash , Bonus units Syndication Nil (2009: Rs. installment payments on your 37/- every unit reported on several October 2008) , Funds , Added bonus units 277, 613, 543 41, 718, 657 319, 332, two hundred , (84, 201, 573) (155, 705, 494) 239, 907, 067) , (68, 209, 424) (84, 681, 745) (152, 891, 169) (134, 398, 403) 137, 287, 852 270, 553, 149 (341, 129, 736) (70, 576, 587) Net (loss) as well as income pertaining to the year 285, 597, 964 (221, 776, 148) 63, 821, 816 (Accumulated loss) / undistributed income taken forward Realised Unrealised The annexed paperwork from one particular to 29 form an integral part of these economical statements. Intended for Askari Expenditure Management Limited (Management Company) _____________________ Chief Executive Officer _____________________ Chairman _____________________ Movie director ANNUAL STATEMENT 2010 twenty-two ASKARI SALARY FUND INCOME STATEMENT
PERTAINING TO THE YEAR ENDED 30 JUNE 2010 2010 2009 , , , , , -Rupees, , , , , – CASH FLOW VIA OPERATING ACTIVITIES (134, 398, 403) 137, 287, 852 235, nine hundred, 249 five-hundred, 003 two, 550, 500 41, 249, 969 a couple of, 745, 757 362, 511, 516 500, 000 , 121, 800, 414 18, 319, 756 404, 746, 392 381, 331, 272 40, five-hundred, 000 844, 297, 792 4, 132, 735 forty eight, 861, 202 937, 791, 729 Net (loss) / income to get the year 206, 338, 628 15, 797, 094 1, 322, 167, 787 (263, 370, 344) 181, 751, 570 you, 462, 684, 735 Alterations: Net damage on investments at fair value through income affirmation Amortization of deferred formation cost Provision against non-performing placements
Provision against resources acquired in settlement of investments Dotacion for contribution to Workers’ Welfare Fund Element of reduction / (income) and capital loss as well as (gain) included in prices of units released less those in units redeemed , net Reduce / (increase) in resources Placements with financial institutions Receivable against Ongoing Funding Program Investments Property acquired in settlement of investments Debris and other receivables Increase / (decrease) in liabilities (844, 313) (2, 425, 650) (1, 833, 518) (122, 234) (2, 257, 131) 3, 906, 450 (20, 604, 150) 150, 500, 000 (6, 757, 050) 447, 729) (7, 616, 901) (6, 623, 147) (3, 576, 396) Payable against payoff of devices Borrowing under repurchase agreement Remuneration payable to the Supervision Company Remuneration payable towards the Trustee Total annual fee payable to the Investments and Exchange Commission of Pakistan Accumulated and other financial obligations 107, 951, 023 you, 204, 563, 322 two, 089, 254, 882 3, 327, 430, 661 (5, 051, 384, 491) (1, 723, 953, 830) four, 205, 918, 533 (9, 506, 667, 735) (152, 410, 997) (5, 453, 160, 199) (519, 390, 508) (3, 363, 905, 317) 529, 166, 833 3, 893, 072, one hundred and fifty 9, 776, 325 Net cash inflow from functioning activities 529, 166, 833
CASH FLOW FROM FINANCING ACTIONS Receipts in respect of issuance of units Obligations against redemption of models Dividend paid Net money used in loans activities Net decrease in cash and cash equivalent Funds and funds equivalent at the start of the year Money and cash equivalent at the conclusion of the yr The annexed notes from 1 to 29 kind an integral part of these types of financial assertions. For Askari Investment Managing Limited (Management Company) _____________________ Chief Executive Officer _____________________ Chairman _____________________ Director ANNUAL REPORT 2010 3 ASKARI INCOME FUND STATEMENT OF MOVEMENT IN PRODUCT HOLDERS’ ACCOUNT FOR 12 MONTHS ENDED 31 JUNE 2010 2010 2009 , , , , , -Rupees, , , , , Net possessions at the beginning of the season [Rs. 102. 14/- (2009: Rs. 103. 98/-) per unit] three or more, 049, four twenty, 048 eight, 346, 972, 639 Issue of thirty-one, 702, 137 (2009: forty one, 750, 666) units of Rs. 100/- each several, 327, 430, 661 5, 205, 918, 533 (5, 051, 384, 491) (9, 506, 667, 735) Redemption of forty seven, 723, 672 (2009: 94, 548, 491) units of Rs. 100/- each Element of (income) / loss and capital (gain) / loss included in prices of models issued significantly less those in units redeemed , net
Distribution to unit cases in funds during the year 121, 800, 414 , Net (loss) as well as income intended for the year Various other comprehensive income Total comprehensive (loss) as well as income to get the year (134, 398, 403) (134, 398, 403) Net assets towards the end of the 12 months [Rs. 94. 90/- (2009: Rs. 102. 14/-) per unit] one particular, 312, 868, 229 18, 319, 756 (152, 410, 997) 137, 287, 852 137, 287, 852 a few, 049, four-twenty, 048 The annexed remarks from you to up to 29 form an integral part of these monetary statements. For Askari Investment Management Limited (Management Company) _____________________ Ceo _____________________ Chief _____________________
Movie director ANNUAL SURVEY 2010 twenty-four ASKARI INCOME FUND REMARKS TO THE ECONOMIC STATEMENTS INTENDED FOR THE YEAR CONCLUDED 30 06 2010 1 . LEGAL STATUS AND CHARACTERISTICS OF BUSINESS 1 . 1 Askari Income Fund (the Fund) was established under the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (the NBFC Rules) while an open end unit trust scheme. It absolutely was constituted under the Trust Action, dated 16 December june 2006 between Askari Investment Managing Limited (a wholly owned or operated subsidiary of Askari Traditional bank Limited), since the Administration Company and Central Depository Company of Pakistan Limited as its Trustee.. 2 The Fund offers units intended for public membership on a constant basis. The units will be transferable and is redeemed by surrendering these to the Finance. The models are listed on the Lahore Stock Exchange. As per the supplying document, the Fund shall invest in a blend spread orders, Continuous Money System (CFS) transactions, debts securities, money forwards, money market instruments and short-maturity change repurchase ventures. 2 . STATEMENT OF COMPLYING
These monetary statements have been prepared relative to approved accounting standards as applicable in Pakistan. Accepted accounting specifications comprise of Worldwide Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) as are notified under the Companies Ordinance, 1984, certain requirements of the Trust Deed, the NBFC Guidelines, the Not Banking Financial institutions and Informed Entities Regulations, 2008 (the NBFC Regulations) and connaissance issued by Securities and Exchange Commission payment of Pakistan (SECP).
Exactly where the requirements of the Trust Action, the NBFC Regulations or the directives released by the SECP differ with all the requirements of IFRS, certain requirements of the Trust Deed, the NBFC Guidelines, the NBFC Regulations and also the requirements with the said directions prevail. a few. BASIS OF DIMENSION 3. one particular These financial statements had been prepared underneath the historical expense convention aside from investments, derivatives and possessions held for sale which are highly valued as stated in notes 4., 4. 3 and four. 6. a few. 2 These types of financial statements are provided in Pakistan Rupees, which can be the efficient and demonstration currency of the Fund and rounded towards the nearest rupee. 4. OVERVIEW OF SIGNIFICANT ACCOUNTING PLANS 4. you The accounting policies followed in the preparation of these monetary statements will be consistent with those of the previous financial year apart from as follows:
The Fund has adopted the following new and amended IFRS and IFRIC interpretations which in turn became successful during the year: IFRS 2? Discuss Based Repayment? Amendments with regards to Vesting Circumstances and Cancellation (Amendment) IFRS 3? Organization Combinations (Revised) IFRS six? Financial Musical instruments: Disclosures (Amendments) IFRS eight? Operating Segments ANNUAL SURVEY 2010
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