quarterly reports mar 2012

7/31/2019 Quarterly Reports Mar 2012

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ASKARI EQUITY FUND

CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES

AS AT MARCH 31, 2012

UNAUDITED

Note March 31, 2012

---(Rupees)---

ASSETS

Bank balances 5 100,845,932

Advances, deposits and prepayments 3,475,253

Unamortised formation costs 998,907Total assets 105,320,092

LIABILITIES

Payable to Askari Investment Management Limited - Management Company 3,659,017

Payable to Central Depository Company of Pakistan Limited - Trustee 3,825

Annual fee payable to Securities and Exchange Commission of Pakistan 519

Accrued expenses and other liabilities 1,632,545

Total liabilities 5,295,906

NET ASSETS 100,024,186

Unit holders' fund (as per statement attached) 100,024,186

Contingencies and commitments

Number of units in issue 1,000,000

Net asset value per unit 100.0242

The annexed notes 1 to 12 form an integral part of these financial statements.

(Management Company)

Chief Executive Director

(Number of units)

------(Rupees)------

For Askari Investment Management Limited


88/105


89/105

ASKARI EQUITY FUND

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)

FOR THE PERIOD FROM FEBRUARY 1, 2012 TO MARCH 31, 2012

---(Rupees)---

Net income for the period after taxation 24,186

Other comprehensive income -

Total comprehensive income for the period 24,186



For the period

from February 1,

2012 to March

31, 2012




90/105

ASKARI EQUITY FUND

CONDENSED INTERIM DISTRIBUTION STATEMENT (UN-AUDITED)


---(Rupees)---

Undistributed income brought forward:

Realised income -

Unrealised income -

-

Net income for the period 24,186

Undistributed income carried forward 24,186

Undistributed income carried forward:

Realised income 24,186

Unrealised income -

24,186





For the period

from February 1,

2012 to March

31, 2012


91/105

ASKARI EQUITY FUND

CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS FUND (UN-AUDITED)


---(Rupees)---

Net assets at the beginning of the period -

100,000,000

100,000,000

Net income for the period 24,186

Other comprehensive income -

24,186

Net assets at the end of the period 100,024,186




Issue of 1,000,000 units


For the period

from February 1,

2012 to March

31, 2012


92/105

ASKARI EQUITY FUND

CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED)


---(Rupees)---

CASH FLOWS FROM OPERATING ACTIVITIES

Net income income for the period 24,186

Adjustments for:

Amortisation of formation costs 1,093

1,093

25,279

(Increase) / decrease in assets

Advances, deposits and prepayments (3,475,253)

Formation Cost (1,000,000)

(4,475,253)

Increase / (decrease) in liabilities

Payable to Askari Investment Management Limited

- Management Company 3,659,017

Payable to Central Depository Company of Pakistan Limited - Trustee 3,825

Annual fee payable to Securities and Exchange Commission of Pakistan 519

Accrued expenses and other liabilities 1,632,5455,295,906

Net cash inflow from operating activities 845,932

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from issue of units 100,000,000

Net cash inflow on financing activities 100,000,000

Net increase in cash and cash equivalents during the period 100,845,932

Cash and cash equivalents at the beginning of the period -

Cash and cash equivalents at the end of the period 100,845,932





For the period

from February 1,

2012 to March

31, 2012


93/105

ASKARI EQUITY FUND

NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION (UN-AUDITED)


1 LEGAL STATUS AND NATURE OF BUSINESS

1.1

1.2

1.3

1.4

1.5

1.6 Title to the assets of the Fund are held in the name of CDC as trustree of the Fund.

2 BASIS OF PRESENTATION

2.1 Statement of compliance

2.2 Basis of measurement

This condensed interim financial information has been prepared under the historical cost convention.

2.3 Functional and presentation currency

2.4 Critical accounting estimates and judgments

3 SIGNIFICANT ACCOUNTING POLICIES

The accounting policies applied in the preparation of this condensed interim financial information are set out below:

Askari Equity Fund (the Fund) was established under the Non Banking Finance Companies (Establishment and Regulation) Rules, 2003

(the NBFC Rules). It was registered under a Trust deed executed between Askari Investment Management Limited (a wholly owned

subsidiary of Askari Bank Limited) as the Management Company and the Central Depository Company of Pakistan Limited (CDC) as the

Trustee on November 17, 2011. The Fund was registered as a Notiifed Entity under the Non Banking Finance Companies Regulations,

2008 (NBFC Regulations) on December 19, 2011. The units of the Fund were initially issued at Rs. 100 per unit.

The Pakistan Credit Rating Agency Limited (PACRA) has assigned an asset manager rating of 'AM3+' to the Management Company in

July 2011. As per the rating scale of PACRA, this rating denotes that the asset manager meets high investment industry standards and

benchmarks.

The fund is an equity fund, which primarily invests in shares of listed companies

The Management Company of the Fund has been licensed to act as an Asset Management Company under the NBFC Rules through a

certificate of registration issued by the SECP. The registered office of the Management Company is situated at Suite No. 502, 5thFloor,Green Trust Tower, Blue Area, Jinnah Avenue, Islamabad with its Head Office situated at Mezzanine floor, Bahria Complex III, M.T.Khan

Road, Karachi.

The Fund is an open ended mutual fund. Units are offered for public subscription on a continuous basis. The units are transferable and

can be redeemed by surrendering them to the Fund.

This condensed interim financial information has been prepared in accordance with the approved accounting standards as applicable inPakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the

International Accounting Standards Board as are notified under the Companies Ordinance, 1984, the requirements of the Trust Deed, the

NBFC Rules, the NBFC Regulations and directives issued by the SECP. Wherever, the requirements of the Trust Deed, the NBFC

Rules, the NBFC Regulations and the said directives differ with the requirements of these standards, the requirements of the Trust Deed,

the NBFC Rules, the NBFC Regulations and the said directives shall prevail.

The disclosures made in this condensed interim financial information has, however, been limited based on the requirements of the

International Accounting Standard 34: 'Interim Financial Reporting'. This condensed interim financial information is unaudited.

This condensed interim financial information is presented in Pak Rupees which is the functional and presentation currency of the Fund

and rounded to the nearest thousand rupees.

The preparation of this condensed interim financial information in conformity with approved accounting standards as applicable in

Pakistan requires management to make judgments, estimates and assumptions that affect the application of policies and reported

amount of assets and liabilities,income and expenses. The estimates and associated assumptions are based on historical experience

and various other factors that are believed to be reasonable under the circumstances, the result of which form the basis of making the

judgements about the carrying values of assets and liabilities which are not readily apparent from other sources. Actual results may differ

from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates

are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of its revision and

future periods if the revision affects both current and future periods.


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3.1 Financial instruments

The Fund classifies its financial instruments in the following categories:

a) Financial instruments at fair value through profit or loss

b) Available-for-sale

c) Loans and receivables

d) Financial liabilities

Recognition

Measurement

Fair value measurement principles

Impairment

Financial liabilities, other than those at fair value through profit or loss, are measured at amortised cost using the effective yield method.

Available for sale financial assets are non-derivatives that are either designated in this category or not classified in any other category.

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market,

other than those classified by the Fund as fair value through profit or loss or available for sale and are carried at amortised cost using

effective yield method, less impairment losses, if any.

Financial assets are initially recognised at fair value plus transaction costs except for financial assets carried at fair value through profit or

loss. Financial assets carried at fair value through profit or loss are initially recognised at fair value and transaction costs are expensed in

the Income Statement.

Subsequent to initial recognition, financial instruments classified as at 'fair value through profit or loss' and available for sale' are

measured at fair value. Gains or losses arising, from changes in the fair value of the financial assets 'at fair value through profit or loss'

are recognised in the Income Statement.

An instrument is classified at fair value through profit or loss if it is held-for-trading or is designated as such upon initial recognition.

Financial instruments are designated at fair value through profit or loss if the Fund manages such investments and makes purchase and

sale decisions based on their fair value in accordance with the Fund's documented risk management or investment strategy. Financial

assets which are acquired principally for the purpose of generating profit from short term price fluctuation or are part of the portfolio in

whichthere is recent actual pattern of short term profit taking areclassified as held for trading or a derivative. Financial instruments at fair

value through profit or loss are measured at fair value, and changes there in arerecognised in Income Statement. All derivatives in a net

receivable position (positive fair value), are reported as financial assets held for trading. All derivative in a net payable position (negative

fair value), are reported as financial liabilities held for trading.

The Fund recognises financial assets and financial l iabil it ies on the date it becomes a party to the contractual provisions of the

instrument. Financial liabilities are not recognised unless one of the parties has performed its part of the contract or the contract is a

derivative contract.

Changes in the fair value of financial instruments classified as 'avai lable-for-sale' are recognised in Unit Holders' Funds until

derecognised or impaired, when the accumulated adjustments recognised in Unit Holders' Funds are included in the Income Statement.

Government securities are stated at fair value.

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

investment of the Fund in government securities is valued on the basis of rates announced by the Financial Markets Association of

Pakistan.

The carrying value of the Fund's assets are reviewed at each period end reporting date to determine whether there is any indication of

impairment. If such an indication exists, the recoverable amount of such asset is estimated. An impairment loss is recognised whenever

the carrying amount of an asset exceeds its recoverable amount. Impairment losses are recognised in the Income Statement.


95/105

Derecognition

Offsetting of financial instruments

3.2 Unit holders' Fund

3.3 Issue and redemption of units

3.4 Element of income / (loss) and capital gains / (losses) included in prices of units sold less those in units repurchased

3.5 Provisions

3.6 Preliminary expenses and floatation cost

3.7 Net asset value per unit

3.8 Taxation

3.9

The Fund records the net element of accrued income / (loss) and realised capital gains / (losses) relating to units issued and redeemed

during an accounting period in the Income Statement, while the portion of the element of income / (loss) and capital gains / (losses) that

relates to unrealised gains / (losses) held by the Fund in unit holders' fund is recorded in a separate reserve account and any amount

remaining in this reserve account at the end of accounting period (whether gain or loss) is included in the amount available for distribution

to the unit holders.

A provision is recognised inthe balance sheet when the Fund has a legal or constructive obligation as a result of past event, it is probable

that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount of

the obligation can be made. Provisions are regularly reviewed and adjusted to reflect the current best estimate.

Preliminary expenses and floatation costs represents expenditure incurred prior to the commencement of operations of the Fund. Thesecosts shall be amortised over the period of five years commencing from March 30, 2012.

The Fund is exempt from taxation under clause 99 of the Part I of the 2nd Schedule of the Income Tax Ordinance, 2001, subject to the

condition that not less than 90% of its accounting income excluding realised and unrealised capital gains for the year is distributed

amongst the Fund's unit holders. The Fund has not recorded provision for taxation as the management company intends to distribute the

required minimum percentage of the Fund's accounting income for the current period as reduced by capital gains (whether realised or

unrealised) to its unit holders.

The net asset value (NAV) per unit, as disclosed onthe condensed interim statement of assets and liabilities, is calculatedby dividing the

net assets of the Fund by the number of units in issue at the period end.

The Fund derecognises a financial asset when the contractual right to the cash flows from the financial asset expires or it transfers the

financial asset and the transfer qualifies for derecgonitionin accordance with International Accounting Standard 39: Financial Instruments:

Recognition and Measurement. A financial liability is derecognised when the obligation specified in the contract is discharged, cancelled

or expired.

Financial assets and liabilities are offset and the net amount reported in the Statement of Assets and Liabilities when there is a legally

enforceable right to set off the recognised amounts and there is an intention to settle on a net basis, or to realise the assets and settlethe

liabilities simultaneously.

Unit holders' Fund represents the units issued by the Fund, carried at the redemption amount representing the investors' right to a

residual interest in the Fund assets.

Units issued are recorded at the offer price determined by the Management Company for the application received by the distributors

during business hours on that date. The offer price represents the net assets value per units as of the close of business day plus the

allowable front end load, provision for transaction cost and any provision for duties and charges, if applicable. The front-end load is

payable to the investment facilitator, distributors and the Management Company.

Units redeemed will be recorded at the redemption price applicable to units for which the distributors receive redemption requests during

the business hours of that day. The redemption price represents the net asset value per unit as of the close of the business day less any

back-end load, any duties, taxes, charges on redemption and any provision for transaction costs, if applicable.

An equalisation account called the 'element of income / (loss) and capital gains / (losses) included in prices of units issued less those in

units redeemed' is created, in order to prevent the dilution of per unit of income and distr ibution of income already paid out on

redemption.

The Scheme is also exempt from the provisions of section 113 (minimum tax) under clause 11A of Part IV of the Second Schedule to the

Income Tax Ordinance, 2001.


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Unaudited

10.1 Transactions during the period: ---(Rupees)---

Askari Investment Management Limited

- Management CompanyRemuneration of the Management Company 16,394

Sindh sales tax on re muneration of the Management

Company 2,623

Central Depository Company Limited - TrusteeRemuneration of the Trustee 3,825

Askari Bank Limited (Holding company of the Management Company)Investment during the period 1,000,000 units 100,000,000

Profit on bank deposits 56,468

Bank charges 300

(Unaudited)

10.2 Amounts outstanding as at period end March 31, 2012

---(Rupees)---


- Management CompanyManagement fee payable 16,394

Sindh sales tax payable on remuneration of Management Company 2,623

Formation cost 1,000,000

Deposits 2,600,000

Other payable 40,000

Central Depository Company Limited - TrusteeTrustee fee payable 3,825

Askari Bank Limited (Holding company of the Management Company)Investment held in the fund 1,000,000 units 100,024,186

Balance with bank 100,835,932

Profit receivable 875,253

Markup payable on core investment 1,625,017

11 GENERAL

11.1 Figures have been rounded off to the nearest rupee.

12 DATE OF AUTHORISATION FOR ISSUE




These financial statements were authorised for issue on April 18, 2012 by the Board of Directors of the Management Company.

For the period

from February 1,

2012 to March

31, 2012


99/105

ASKARI SOVEREIGN YIELD ENCHANCER FUND

CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES

AS AT MARCH 31, 2012

UNAUDITED

Note March 31, 2012

---(Rupees)---

ASSETS

Bank balances 4 100,845,932

Advances, deposits and prepayments 1,175,253

Unamortised formation costs 1,245,000Total assets 103,266,185

LIABILITIES

Payable to Askari Investment Management Limited - Management Company 1,585,000

Other liabilities 1,681,185

Total liabilities 3,266,185

NET ASSETS 100,000,000

Contingencies and commitments 5

Number of units in issue 1,000,000

Net asset value per unit 100.0000




(Number of units)

------(Rupees)------



100/105


CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED)


---(Rupees)---

CASH FLOWS FROM OPERATING ACTIVITIES

Net income income for the period -

Adjustments for:

Amortisation of formation costs -

-

-

(Increase) / decrease in assets

Advances, deposits and prepayments (1,175,253)

Formation Cost (1,245,000)

(2,420,253)

Increase / (decrease) in liabilities

Payable to Askari Investment Management Limited

- Management Company 1,585,000

Accrued expenses and other liabilities 1,681,185

3,266,185

Net cash inflow from operating activities 845,932

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from issue of units 100,000,000

Net cash inflow on financing activities 100,000,000

Net increase in cash and cash equivalents during the period 100,845,932

Cash and cash equivalents at the beginning of the period -

Cash and cash equivalents at the end of the period 100,845,932





For the period

from February 1,

2012 to March

31, 2012


101/105


NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION (UN-AUDITED)


1 LEGAL STATUS AND NATURE OF BUSINESS

1.1

1.2

1.3

1.4

1.5

1.6

1.7

1.8 Title to the assets of the Fund are held in the name of CDC as trustree of the Fund.

2 BASIS OF PRESENTATION

2.1 Statement of compliance

2.2 Basis of measurement

This condensed interim financial information has been prepared under the historical cost convention.

2.3 Functional and presentation currency

2.4 Critical accounting estimates and judgments

3 SIGNIFICANT ACCOUNTING POLICIES

The accounting policies applied in the preparation of this condensed interim financial information are set out below:

Askari Sovereign Yield Enhancer Fund (the Fund) was established under the Non Banking Finance Companies (Establishment and

Regulation) Rules, 2003 (the NBFC Rules). It was registered under a Trust deed executed between Askari Investment Management

Limited (a wholly owned subsidiary of Askari Bank Limited) as the Management Company and the Central Depository Company of

Pakistan Limited (CDC) as the Trustee on December 09, 2011. The Fund was registered as a Notiifed Entity under the Non Banking

Finance Companies Regulations, 2008 (NBFC Regulations) on December 23, 2011. The units of the Fund will initially be issued at Rs.

100 per unit.

The Pakistan Credit Rating Agency Limited (PACRA) has assigned an asset manager rating of 'AM3+' to the Management Company in

July 2011. As per the rating scale of PACRA, this rating denotes that the asset manager meets high investment industry standards and

benchmarks.

The objective of the Fund is to generate relatively higher yield than the conventional bank deposits, from a portfolio constituted of credit

worthy sovereign instruments and banking sector fixed income instruments and deposits.

The Management Company of the Fund has been licensed to act as an Asset Management Company under the NBFC Rules through a

certificate of registration issued by the SECP. The registered office of the Management Company is situated at Suite No. 502, 5thFloor,Green Trust Tower, Blue Area, Jinnah Avenue, Islamabad with its Head Office situated at Mezzanine floor, Bahria Complex III, M.T.Khan

Road, Karachi.

The Fund is an open ended mutual fund. Units will be offered for public subscription on a continuous basis. The units will be transferable

and will be redeemed by surrendering them to the Fund.

This condensed interim financial information has been prepared in accordance with the approved accounting standards as applicable in

Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the

International Accounting Standards Board as are notified under the Companies Ordinance, 1984, the requirements of the Trust Deed, the

NBFC Rules, the NBFC Regulations and directives issued by the SECP. Wherever, the requirements of the Trust Deed, the NBFC

Rules, the NBFC Regulations and the said directives differ with the requirements of these standards, the requirements of the Trust Deed,

the NBFC Rules, the NBFC Regulations and the said directives shall prevail.

The disclosures made in this condensed interim financial information has, however, been limited based on the requirements of the

International Accounting Standard 34: 'Interim Financial Reporting'. This condensed interim financial information is unaudited.

The Fund has not commenced operations yet hence there is no item to be reported in Income Statement, Distribution Statement and

Movement in Unit Holdes' Fund. Accordingly, thesestatements have not been prepared in this condensed interim financial information.

Till March 31, 2012, the Fund has received Rs 100 million as core investment .

This condensed interim financial information is presented in Pak Rupees which is the functional and presentation currency of the Fund

and rounded to the nearest thousand rupees.

The preparation of this condensed interim financial information in conformity with approved accounting standards as applicable in

Pakistan requires management to make judgments, estimates and assumptions that affect the application of policies and reported

amount of assets and liabilities,income and expenses. The estimates and associated assumptions are based on historical experience

and various other factors that are believed to be reasonable under the circumstances, the result of which form the basis of making the

judgements about the carrying values of assets and liabilities which are not readily apparent from other sources. Actual results may differ

from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates

are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of its revision and

future periods if the revision affects both current and future periods.


102/105

3.1 Financial instruments

The Fund classifies its financial instruments in the following categories:

a) Financial instruments at fair value through profit or loss

b) Available-for-sale

c) Loans and receivables

d) Financial liabilities

Recognition

Measurement

Fair value measurement principles

Impairment

Financial liabilities, other than those at fair value through profit or loss, will be measured at amortised cost using the effective yield

method.

Available for sale financial assets are non-derivatives that will either be designated in this category or not classified in any other category.

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market,

other than those classified by the Fund as at fair value through profit or loss or available for sale and wiil be carried at amortised cost

using effective yield method, less impairment losses, if any.

Financial assets will initially be recognised at fair value plus transaction costs except for financial assets carried at fair value throughprofit

or loss. Financial assets carried at fair value through profit or loss will initially be recognised at fair value and transaction costs will be

expensed in the Income Statement.

Subsequent to initial recognition, financial instruments classified as at 'fair value through profit or loss' and available for sale' will be

measured at fair value. Gains or losses arising from changes in the fair value of the financial assets 'at fair value through profit or loss'

will be recognised in the Income Statement.

An instrument will be classified at fair value through profit or loss if it is held-for-trading or is designated as such upon initial recognition.

Financial instruments will be designated at fair value through profit or loss if the Fund manages such investments and makes purchase

and sale decisions based on their fair value in accordance with the Fund's documented risk management or investment strategy.

Financial assets which will be acquired principally for the purpose of generating profit from short term price fluctuation or are part of the

portfolio in which there is recent actual pattern of short term profit taking will be classified as held for trading or a derivative. Financial

instruments at fair value through profit or loss wil l be measured at fair value, and changes there in wil l be recognised in Income

Statement. All derivatives in a net receivable position (positive fair value), will be reported as financial assets held for trading. All

derivative in a net payable position (negative fair value), will be reported as financial liabilities held for trading.

The Fund will recognise financial assets and financial liabilities on the date it will become a party to the contractual provisions of the

instrument. Financial liabilities will not be recognised unless one of the parties has performed its part of the contract or the contract is a

derivative contract.

Changes in the fair value of financial instruments classified as 'available-for-sale' will be recognised in Unit Holders' Funds until

derecognised or impaired, when the accumulated adjustments recognised in Unit Holders' Funds will be included in the Income

Statement. Government securities will be stated at fair value.

The investment of the Fund in equity securities will be valued on the basis of quoted market prices available at the stock exchange. The

investment of the Fund in government securities will be valued on the basis of rates announced by the Financial Markets Association of

Pakistan.

The carrying value of the Fund's assets will be reviewed at each period end reporting date to determine whether there is any indication of

impairment. If such an indication exists, the recoverable amount of such asset will be estimated. An impairment loss will be recognised

whenever the carrying amount of an asset exceeds its recoverable amount. Impairment losses will be recognised in the Income

Statement.


103/105

Derecognition

Offsetting of financial instruments

3.2 Unit holders' Fund

3.3 Issue and redemption of units

3.4 Element of income / (loss) and capital gains / (losses) included in prices of units sold less those in units repurchased

3.5 Provisions

3.6 Preliminary expenses and floatation cost

3.7 Net asset value per unit

3.8 Taxation

3.9

The Fund wil l record the net element of accrued income / (loss) and real ised capital gains / (losses) relating to units issued and

redeemed during an accounting period in the Income Statement, while the portion of the element of income / (loss) and capital gains /

(losses) that relates to unrealised gains / (losses) held by the Fund in unit holders' fund shall be recorded in a separate reserve account

and any amount remaining in this reserve account at the end of accounting period (whether gain or loss) will be included in the amount

available for distribution to the unit holders.

A provision will be recognised in the balance sheet when the Fund will have a legal or constructive obligation as a result of past event, it

will be probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate

of the amount of the obligation can be made. Provisions will be regularly reviewed and adjusted to reflect the current best estimate.

Preliminary expenses and floatation costs represents expenditure incurred prior to the commencement of operations of the Fund. These

costs shall be amortised over the period of five years commencing from the date the fund becomes open for subscription.

The Fund will be exempt from taxation under clause 99 of the Part I of the 2nd Schedule of the Income Tax Ordinance, 2001, subject to

the condition that not less than 90% of its accounting income excluding realised and unrealised capital gains for the year is distributed

amongst the Fund's unit holders.

The net asset value (NAV) per unit, as disclosed on the condensed interim statement of assets and liabilities, will be calculated by

dividing the net assets of the Fund by the number of units in issue at the period end.

The Fund will derecognise a financial asset when the contractual right to the cash flows from the financial asset expires or it transfers the

financial asset and the transfer qualifies for derecgonitionin accordance with International Accounting Standard 39: Financial Instruments:

Recognition and Measurement. A financial liability will be derecognised when the obligation specified in the contract is discharged,

cancelled or expired.

Financial assets and liabilities will be offset and the net amount reported in the Statement of Assets and Liabilities when there will be a

legally enforceable right to set off the recognised amounts and there will be an intention to settle on a net basis, or to realise the assets

and settle the liabilities simultaneously.

Unit holders' Fund represents the units issued by the Fund, carried at the redemption amount representing the investors' right to a

residual interest in the Fund assets.

Units issued will be recorded at the offer price determined by the Management Company for the application received by the distributors

during business hours on that date. The offer priceshall represents the net assets value per units as of the closeof business day plus the

allowable front end load, provision for transaction cost and any provision for duties and charges, if applicable. The front-end load is

payable to the investment facilitator, distributors and the Management Company.

Units redeemed will be recorded at the redemption price applicable to units for which the distributors receive redemption requests during

the business hours of that day. The redemption priceshall represents the net asset value per unit as of the close of the business day less

any back-end load, any duties, taxes, charges on redemption and any provision for transaction costs, if applicable.

An equalisation account called the 'element of income / (loss) and capital gains / (losses) included in prices of units issued less those in

units redeemed' will be created, in order to prevent the dilution of per unit of income and distribution of income already paid out on

redemption.

The Scheme will also be exempt from the provisions of section 113 (minimum tax) under clause 11A of Part IV of the Second Schedule

to the Income Tax Ordinance, 2001.


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3.10 Revenue recognition

3.11 Expenses

3.12 Cash and cash equivalents

3.13 Other assets

3.14 Proposed dividend and transfer between reserves

(Unaudited)

4 BANK BALANCES Note March 31, 2012---(Rupees)---

In savings accounts

4.1 100,845,932

4.1

Gains / (losses) arising on sale of investments will be included in the Income Statement on the date at which the transaction takes place.

Unrealised gains / (losses) arising on revaluation of investments classified as financial assets at fair value through profit or loss and

derivatives will be included in the Income Statement in the period in which they arise.

Dividend income will be recognised when the right to receive the payment is established. Income on government securities will be

recognised on accrual basis using the effective interest rate method. Profit on bank deposit will be recognised on time proportion basis

taking in to account effective yield.

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

the Income Statement on the date of issue and redemption of units.

Other assets willb be stated at cost less impairment losses, if any.

All expenses will be recognised in the income statement on an accrual basis.

These savings accounts carry profit at the rates ranging from 5.00% to 10.25% per annum. This includes an amount of Rs 100,835,932

maintained with Askari Bank Limited, the holding company of Management Company.

Cashand cash equivalents include balances withbanks, other short term highlyliquid investments withoriginal maturities of three months

or less and bank overdrafts.

Dividends declared subsequent to the balance sheet date will be considered as non-adjusting event and will be recognised in the

financial statements in the period in which such dividends will be declared.


105/105

5 CONTINGENCIES AND COMMITMENTS

There were no other contingencies and commitments outstanding as at March 31, 2012.

6 RISK MANAGEMENT

Note UNAUDITED

7 PAYABLE TO ASKARI INVESTMENT MANAGEMENT March 31, 2012LIMITED - MANAGEMENT COMPANY ---(Rupees)---

Formation cost 1,245,000

Deposits 100,000


1,585,000

8 TRANSACTIONS WITH CONNECTED PERSONS / RELATED PARTIES

Unaudited

8.1 Transactions during the period: ---(Rupees)---

Askari Bank Limited (Holding company of the Management Company)Investment during the period (1,000,000 units) 100,000,000

(Unaudited)

8.2 Amounts outstanding as at period end March 31, 2012

---(Rupees)---


- Management CompanyFormation cost 1,245,000

Deposits 100,000


Askari Bank Limited (Holding company of the Management Company)Investment held in the fund 1,000,000 units 100,000,000

Balance with bank 100,835,932

Profit receivable 875,253

Markup payable on core investment 1,681,185

9 GENERAL

9.1 Figures have been rounded off to the nearest rupee.

10 DATE OF AUTHORISATION FOR ISSUE



These financial statements were authorised for issue on April 18, 2012 by the Board of Directors of the Management Company.

For the period

from February 1,

2012 to March

31, 2012

The fund has not commenced operations yet and the amount of core investment has been keptin bank deposit with a bank having

AA long time credit rating, hence the fund's exposure to credit risk is low.

Details of the transactions with connected person / related parties other than those disclosed else where in this condensed interim

financial information are as follows:

Connected persons / related parties include Askari Investment Management Limited being the Management Company, Central

Depository Company of Pakistan Limited being the Trustee, Askari Bank Limited being the holding company of the Management

Company, Askari General Insurance Company Limited being an associate company of the Management Company, Askari

Investment Management Employees Provident Fund and other Collective Investments Schemes under common management and

the directors and officer of the Management Company.

Transactions with connected persons / related parties are in the normal course of business and are carried out agreed terms.

quarterly reports mar 2012

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