NAFA Riba Free Savings Fund Report - 1Q 2018

Transcription

2. NAFA RIBA FREE SAVINGS FUND MISSION STATEMENT To rank in the top quartile in performance of NBP FUNDS relative to the competition , and to consistently offer Superior risk-adjusted returns to investors. Quarterly Report Page 01
3. Contents NAFA RIBA FREE SAVINGS FUND Page 02 FUND 'S INFORMATION 03 DIRECTORS' REPORT 05 CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES 09 CONDENSED INTERIM INCOME STATEMENT 10 CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME 11 CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUND 12 CONDENSED INTERIM CASH FLOW STATEMENT 13 NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION 14 Quarterly Report
4. NAFA RIBA FREE SAVINGS FUND NBP Fund Management Limited - Management Company Formerly : NBP Fullerton Asset Management Limited (NAFA) Mr. Mudassir Husain Khan Mr. Tariq Jamali Mr. Abdul Hadi Palekar Dr. Foo Chiah Shiung (Kelvin Foo) Mr. Humayun Bashir Chief Financial Officer Mr. Khalid Mehmood Mr. Tariq Jamali Dr. Foo Chiah Shiung (Kelvin Foo) Mr. Humayun Bashir Human Resource and Remuneration Committee Mr. Kamal Amir Chinoy Mr. Abdul Hadi Palekar Mr. Humayun Bashir Chairman Member Member Strategy & Business Planning Committee Mr. Humayun Bashir Mr. Tariq Jamali Mr. Shehryar Faruque Dr. Foo Chiah Shiung (Kelvin Foo) United Bank Limited Summit Bank Limited BankIslami Pakistan Limited MCB Bank Limited Silk Bank Limited Dubai Islamic Bank Pakistan Limited National Bank of Pakistan Quarterly Report Chairman Member Member Member Page 03
5. NAFA RIBA FREE SAVINGS FUND Allied Bank Limited Sindh Bank Limited Bank Al Habib Limited Habib Metropolitan Bank Limited JS Bank Limited Auditors Deloitte Yousuf Adil Chartered Accountants Cavish Court , A-35, Block 7 & 8, KCHSU, Sharae Faisal Karachi-75350 Pakistan Legal Advisor M/s Jooma Law Associates 205, E.I. Lines, Dr. Daudpota Road, Karachi. 7th Floor Clifton Diamond Building, Block No. 4, Scheme No. 5, Clifton Karachi. UAN: 021 (111-111-632), (Toll Free): 0800-20002, Fax: (021) 35825329 Website: www.nbpfunds.com Lahore Office: 7-Noon Avenue, Canal Bank, Muslim Town, Lahore. UAN: 042-111-111-632 Fax: 92-42-35861095 Islamabad Office: Plot No. 395, 396 Industrial Area, I-9/3 Islamabad. UAN: 051-111-111-632 Phone: 051-2514987 Fax: 051-4859031 Peshawar Office: Opposite Gul Haji Plaza, 2nd Floor National Bank Building University Road Peshawar, UAN: 091-111 111 632 Fax: 091-5703202 Multan Office: Page 04 Quarterly Report
6. NAFA RIBA FREE SAVINGS FUND DIRECTORS ’ REPORT The Board of Directors of NBP Fund Management Limited (Formerly; NBP Fullerton Asset Management Limited) is pleased to present the unaudited financial statements of NAFA Riba Free Savings Fund (NRFSF) for the period ended March 31, 2018. Fund’s Performance The size of NAFA Riba Free Savings Fund has increased from Rs. 2,127 million to Rs. 3,447 million during the period (i.e. a significant growth of 62%). During the period, the unit price of the Fund has increased from Rs. 10.1882 on June 30, 2017 to Rs. 10.5742 on March 31, 2018, thus showing a return of 5.0% as compared to the benchmark return of 2.5% for the same period. The performance of the Fund is net of management fee and all other expenses. NRFSF is an Islamic Income Scheme with no direct or indirect exposure to the stock market and corporate sukuks. The stability rating of the Fund by PACRA is ‘A (f)’, which denotes a strong capacity to maintain relative stability in returns and very low exposure to risks. The Fund aims to consistently provide better returns than profit rates offered by Islamic Banks/Islamic windows of commercial banks, while also providing easy liquidity along with a good quality credit profile. The maturity of any single instrument except GOP Ijarah Sukuks cannot exceed six months. During the period under review, in its bi-monthly monetary policy review in January 2018, State Bank of Pakistan (SBP) increased the policy rate and discount rate by 25 basis points to 6.00% and 6.50%, respectively. After remaining range bound, sovereign yields responded to the recent increase in the policy rates and expectation of more to come in the near future. During the period under review, yields on T-bills for 3-month, 6-month, and 12-month, tenors increased by 41 basis points, 57 basis points, 71 basis points, respectively. Expecting upside risks to inflation and interest rates, investors’ preference remained tilted toward short tenors. The primary market for corporate Sukuks remained under-supplied against the large demand. In the secondary market, the trading activity in the corporate Sukuk remained thin. Prices of GoP Sukuk moved down with corresponding increase in yields by 120-182 basis points for different Ijara issues. The Fund has earned total income of Rs. 145.36 million during the period. After deducting expenses of Rs.26.74 million, the net income is Rs.118.62 million. The below chart presents the asset allocation and the weighted average credit rating of each of the sub-asset classes of NRFSF: Quarterly Report Page 05
7. NAFA RIBA FREE SAVINGS FUND Acknowledgement The Board takes this opportunity to thank its valued unit-holders for their confidence and trust in the Management Company , and providing the opportunity to serve them. It also offers its sincere gratitude to the Securities & Exchange Commission of Pakistan and State Bank of Pakistan for their patronage and guidance. The Board also wishes to place on record its appreciation for the hard work, dedication and commitment shown by the staff and the Trustee. On behalf of the Board of NBP Fund Management Limited (Formerly; NBP Fullerton Asset Management Limited) Chief Executive Officer Director Date: April 30, 2018 Place: Karachi. Page 06 Quarterly Report
8. NAFA RIBA FREE SAVINGS FUND Quarterly Report Page 07
9. NAFA RIBA FREE SAVINGS FUND Page 08 Quarterly Report
10. NAFA RIBA FREE SAVINGS FUND CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES AS AT MARCH 31 , 2018 (Un- Audited) March 31' 2018 Note Audited June 30, 2017 (Rupees in '000) ASSETS 3,203,621 247,359 207 20,465 3,471,652 2,048,337 101,990 10,356 1,171 5,039 387 1,785 44 17,697 24,952 2,975 242 1,075 30,413 34,705 NET ASSETS 3,446,700 2,127,149 Unit holders’ fund (As per statement attached) 3,446,700 2,127,149 Balances with banks Investments Prepayment and other receivables Profit receivable Receivable against issue of units Total assets 4 2,161,854 LIABILITIES Payable to the Management Company Payable to the Trustee Payable to Securities and Exchange Commission of Pakistan Payable against redemption of units Accrued expenses and other liabilities Total liabilities 6 CONTINGENCIES AND COMMITMENTS -----------Number of units--------- 325,955,051 Number of units in issue 208,784,704 --------------(Rupees)-------------10.5742 Net asset value per unit 10.1882 The annexed notes form an integral part of these condensed interim financial information. For NBP Fund Management Limited (Formerly;NBP Fullerton Asset Management Limited) (Management Company) Chief Financial Officer Quarterly Report Chief Executive Officer Director Page 09
11. NAFA RIBA FREE SAVINGS FUND CONDENSED INTERIM INCOME STATEMENT (UN-AUDITED) FOR THE NINE MONTHS PERIOD AND QUARTER ENDED MARCH 31, 2018 Nine months Period ended Quarter ended Note 31-Mar-18 31-Mar-17 31-Mar-18 31-Mar-17 --------------------------------------------------- Rupees in '000 ------------------------------- INCOME Profit on bank deposits Income on GOP Ijara Sukuks & commercial paper Income Commercial paper Reversal of provision for Workers' Welfare Fund Net unrealised appreciation/(diminution) on re-measurement of investments classified as 'financial assets at fair value through profit or loss' Total income 140,482 4,137 2,749 - 54,076 4,093 10,079 53,602 1,359 2,660 - 23,789 1,343 10,079 (2,000) 145,368 560 68,808 (720) 56,901 (1,100) 34,111 13,726 1,784 2,660 346 1,785 2,379 21 413 451 266 62 364 66 5,516 717 1,435 187 710 947 41 209 413 245 10 301 377 21 5,371 698 983 128 683 910 7 107 103 89 18 141 31 2,322 302 572 74 319 426 13 42 115 82 10 110 377 21 EXPENSES Remuneration of the Management Company Sindh sales tax on remuneration of the Management Company Remuneration of the Trustee Sindh Sales Tax on remuneration of the Trustee Annual fee - Securities and Exchange Commission of Pakistan Accounting and operational charges to the Management Company Annual listing fee Settlement & Bank charges Auditors' remuneration Fund rating fee Printing and related costs Shariah advisor fee Provision for Sindh Workers' Welfare Fund- previous years Legal and professional charges Total expenses Net income from operating activities Element of income / (loss) and capital gains / (losses) included in prices of units issued less those in units redeemed Provision for Sindh Workers' Welfare Fund 5 Net income for the period before taxation 7 Taxation Net income for the period after taxation 24,323 11,129 9,269 4,785 121,045 57,679 47,632 29,326 121,045 22,752 80,431 47,632 13,483 42,809 (2,421) (1,609) (952) (1,609) 118,624 78,822 46,680 41,200 - - - - 118,624 78,822 46,680 41,200 Earnings per unit Allocation of net income for the period: Net income for the period after taxation Income already paid on units redeemed Accounting Income available for Distribution - Relating to capital gain - Excluding capital gain 118,624 (36,274) 46,680 (19,063) 82,350 27,617 82,350 82,350 27,617 27,617 The annexed notes form an integral part of these condensed interim financial information. For NBP Fund Management Limited (Formerly;NBP Fullerton Asset Management Limited) (Management Company) Chief Financial Officer Page 10 Chief Executive Officer Director Quarterly Report
12. NAFA RIBA FREE SAVINGS FUND CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED) FOR THE NINE MONTHS PERIOD AND QUARTER ENDED MARCH 31, 2018 Nine months Period ended Quarter ended 31-Mar-18 31-Mar-17 31-Mar-18 31-Mar-17 --------------------------------------------------- Rupees in '000 -------------------------------- Net income for the period after taxation Other comprehensive income for the period Total comprehensive income for the period 118,624 78,822 46,680 41,200 - - - - 118,624 78,822 46,680 41,200 The annexed notes form an integral part of these condensed interim financial information. For NBP Fund Management Limited (Formerly;NBP Fullerton Asset Management Limited) (Management Company) Chief Financial Officer Quarterly Report Chief Executive Officer Director Page 11
13. NAFA RIBA FREE SAVINGS FUND CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS ' FUNDS (UN-AUDITED) FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2018 Nine Months Period ended March 31, 2018 2017 ------------------------------------------------------------------------------------------ (Rupees in '000) -----------------------------------------------------Capital Value Undistributed Income Capital Value Total Undistributed Income Total 2,108,566 18,583 2,127,149 1,145,537 14,689 1,160,226 4,816,877 83,253 4,900,130 - 4,816,877 83,253 4,900,130 2,435,940 66,386 2,502,326 Redemption of 355,619,450 units (2017: 182,180,519 units) - Capital value - Element of loss (3,623,122) (39,808) (36,274) (3,623,122) (76,081) Total payments on redemption of units (3,662,930) (36,274) (3,699,203) (1,852,648) (43,634) (1,896,282) - (22,752) (22,752) - 78,822 78,822 93,511 1,822,340 Net assets at beginning of the period Issue of 472,789,797 units (2017: 239,538,608 units) - Capital value - Element of income Total proceeds on issuance of units Net element of income and capital gains included in prices of units issued less those in units redeemed - net - Total comprehensive income for the period Net assets at end of the period 3,345,766 - - 118,624 118,624 100,933 3,446,700 1,728,829 Undistributed income brought forward - Realised - Unrealised 17,383 1,200 13,899 790 18,583 14,689 82,350 82,350 78,822 100,933 93,511 102,933 (2,000) 92,951 560 100,933 93,511 Accounting income available for distribution - Relating to capital gain - Excluding capital gain Undistributed income carried forward Undistributed income carried forward - Realised - Unrealised - (Rupees) - - (Rupees) - Net assets value per unit at beginning of the period 10.1882 10.1693 Net assets value per unit at end of the period 10.5742 10.6291 The annexed notes form an integral part of these condensed interim financial information. For NBP Fund Management Limited (Formerly;NBP Fullerton Asset Management Limited) (Management Company) Chief Financial Officer Page 12 Chief Executive Officer Director Quarterly Report
14. NAFA RIBA FREE SAVINGS FUND CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED) FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2018 Nine month Period ended March 31, 2018 March 31, 2017 -----------Rupees in '000----------- CASH FLOW FROM OPERATING ACTIVITIES Net income for the period before taxation 118,624 78,822 - (22,752) 2,000 120,624 (560) 55,510 (147,369) 10,149 (19,294) (156,514) 30 (4,429) (4,399) 2,064 145 710 (12,716) (9,797) (45,687) 486 52 (293) (60,431) (60,186) (9,075) Receipts from issue of units Payment on redemption of units Net cash generated from financing activities 4,900,130 (3,699,159) 1,200,971 2,492,740 (1,896,221) 596,519 Net increase in cash and cash equivalents during the period Cash and cash equivalents at the beginning of the period 1,155,284 2,048,337 587,444 1,130,634 Cash and cash equivalents at end of the period 3,203,621 1,718,078 Adjustments Element of (income)/loss and capital gains included in prices of units issued less those in units redeemed - net Net unrealised diminution / (appreciation) on re-measurement of investments classified as 'financial assets at fair value through profit or loss' (Increase) / decrease in assets Investments - net Advances, deposits, prepayments and other receivables Profit receivable Increase / (decrease) in liabilities Payable to the Management Company Payable to the Trustee Payable to Securities and Exchange Commission of Pakistan Accrued expenses and other liabilities Net cash generated from / (used in) from operating activities CASH FLOWS FROM FINANCING ACTIVITIES The annexed notes form an integral part of these condensed interim financial information. For NBP Fund Management Limited (Formerly;NBP Fullerton Asset Management Limited) (Management Company) Chief Financial Officer Quarterly Report Chief Executive Officer Director Page 13
15. NAFA RIBA FREE SAVINGS FUND NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL INFORMATION (UNAUDITED) FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2018 1 LEGAL STATUS AND NATURE OF BUSINESS NAFA Riba Free Savings Fund (the Fund) was established under a Trust Deed executed between NBP Fullerton Asset Management Limited (NAFA) as the Management Company and Central Depository Company of Pakistan Limited (CDC) as the Trustee. The Trust Deed was executed on June 29, 2010 and was approved by the Securities and Exchange Commission of Pakistan (SECP) on June 18, 2010 in accordance with the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 ( the NBFC Rules ). On January 11, 2013, MCB Financial Services Limited (MCB-FSL) was appointed as the new Trustee of the Fund, after CDC retired on the prior day. The appointment of the new Trustee was made as per clause 21 of the Trust Deed and Regulation 42(3) of the the Non- Banking Finance Companies and Notified Entities Regulations, 2008 (the NBFC Regulations). The supplemental Trust Deed of the Fund was signed on November 16, 2012. Thereafter, on September 4, 2013, CDC was re-appointed as the new Trustee of the Fund, after MCB-FSL retired on the prior day and the supplemental Trust Deed was signed on July 29, 2013. 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 7th floor, Clifton Diamond Building, Block No. 4, Scheme No. 5, Clifton, Karachi. The Management Company is a member of Mutual Funds Association of Pakistan (MUFAP). The Fund is an open-ended mutual fund and classified as an Islamic "income scheme" by the Management Company and is listed on the Pakistan Stock Exchange Limited. Units are offered for public subscription on a continuous basis. The units of the Fund are transferable and can be redeemed by surrendering them to the Fund. The objective of the Fund is to provide preservation of capital and earn a reasonable rate of return along with a high degree of liquidity by investing in Shariah compliant banks and money market / debt securities. The Pakistan Credit Rating Agency Limited (PACRA) has assigned an asset manager rating of 'AM1' to the Management Company and has assigned stability rating of 'A(f)' to the Fund. Title of the assets of the Fund is held in the name of CDC as a trustee of the Fund. 2 BASIS OF PREPARATION 2.1 Statement Of Compliance These condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of: - International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017; - Provisions of and directives issued under the Companies Act, 2017 along with part VIIIA of the repealed Companies Ordinance, 1984; and - Non-Banking Finance Companies (Establishment and Regulations) Rules, 2003 (the NBFC Rules), Non-Banking Finance Companies and Notified Entities Regulations, 2008(the NBFC Regulations) and requirements of the Trust Deed. Where provisions of and directives issued under the Companies Act, 2017, part VIIIA of the repealed Companies Ordinance, 1984, the NBFC Rules, the NBFC Regulations and requirements of the Trust Deed differ from the requirements of IAS 34, the provisions of and directives issued under the Companies Act, 2017, part VIIIA of the repealed Companies Ordinance, 1984, the NBFC Rules, the NBFC Regulations and requirements of the Trust Deed have been followed. The disclosures made in this condensed interim financial information have been limited based on the requirements of the International Accounting Standard 34: 'Interim Financial Reporting'. This condensed interim financial information does not include all the information and disclosures required in a full set of financial statements and should be read in conjunction with the annual published financial statements of the Fund for the year ended June 30, 2017. Page 14 Quarterly Report
16. NAFA RIBA FREE SAVINGS FUND In compliance with schedule V of the NBFC Regulations the directors of the Management Company hereby declared that this condensed interim financial information gives a true and fair view of the state of the Fund ’s affairs as at March 31, 2018. ACCOUNTING POLICIES 3 The accounting policies, basis of accounting estimates applied and method of computation adopted in the preparation of this condensed interim financial information and financial risk management objectives and policies are the same as those applied in the preparation of the financial statements of the Fund for the year ended June 30, 2017 except as explained in note 3.1. 3.1 The Securities and Exchange Commission of Pakistan through its SRO 756(I)/2017 dated August 3, 2017 has made certain amendments in the NBFC Regulations. The notification includes a definition and explanation relating to "element of income" and excludes the element of income from the expression "accounting income" as described in Regulation 63 (amount distributable to unit holders) of the NBFC Regulations. As per the notification, element of income represents the difference between net assets value per unit on the issuance or redemption date, as the case may be, of units and the net assets value per unit at the beginning of the relevant accounting period. Further, the revised regulations also specify that element of income is a transaction of capital nature and the receipt and payment of element of income shall be taken to unit holders' fund. However, to maintain the same ex-dividend net asset value of all units outstanding on the accounting date, net element of income contributed on issue of units lying in unit holders fund will be refunded on units in the same proportion as dividend bears to accounting income available for distribution. Furthermore, the amended regulations also require certain additional disclosures with respect to 'Income Statement' and 'Statement of Movement in Unit Holders' Fund', whereas disclosure with respect to 'Distribution Statement' has been deleted in the amended regulations. Previously, an equalization account called the 'element of income / (loss) and capital gains / (losses) included in prices of units issued less those in units redeemed' was created, in order to prevent the dilution of per unit income and distribution of income already paid out on redemption. The net element of income / (loss) and capital gains / (losses) relating to units issued and redeemed during the accounting period which pertained to unrealized appreciation / (diminution) held in the Unit Holder's Fund was recorded in a separate account and any amount remaining in this reserve account at the end of the accounting period (whether gain or loss) was included in the amount available for distribution to the unitholders. The remaining portion of the net element of income / (loss) and capital gains / (losses) relating to units issued and redeemed during an accounting period was recognized in the Income Statement. As required by IAS 8: 'Accounting Policies, Changes in Accounting Estimates and Errors', a change in accounting policy requires retrospective application as if that policy had always been applied. However, the Management Company has applied the above changes in accounting policy, including the additional disclosures requirements in the 'Income Statement' and 'Statement of Movement in Unit Holders' Fund', prospectively from July 1, 2017 as allowed by the SECP vide their email to MUFAP dated February 8, 2018. Accordingly, corresponding figures have not been restated. The ‘Distribution Statement’ for the comparative period has not been presented as it has been deleted as a result of the amendments made in the NBFC Regulations the aforementioned SRO issued by the SECP. Had the element of income been recognised as per the previous accounting policy, the profit of the Fund would have been higher by Rs. 7.03 million net off charge for SWWF in respect of element of income and consequently NAV per unit would have been lower by Rs. 0.0004 . However, the change in accounting policy does not have any impact on the 'Cash Flow Statement', the 'net assets attributable to the unit holders' and 'net asset value per unit' as shown in the 'statement of Assets and Liabilities' and 'Statement of Movement in Unit Holders' Fund'. The change has resulted in inclusion of certain additional disclosures / new presentation requirements in the 'Income Statement' and 'Statement of Movement in Unit Holders' Fund which have been incorporated in these statements. Note 4 Commercial Paper Quarterly Report Audited As at June 30, 2017 (Rupees in '000) INVESTMENTS At fair value through profit or loss - held for trading Government of Pakistan Ijarah Sukuks Un-audited As at March 31, 2018 4.1 99,990 101,990 4.1.2 147,369 247,359 101,990 Page 15
17. NAFA RIBA FREE SAVINGS FUND 4 .1 Government of Pakistan Ijara Sukuks - at fair value through profit or loss All certificates have a face value of Rs.100,000 each N um be r o f c e rt ific a t e s N a m e o f t he inv e s t e e c o m pa ny Is s ue D a t e A s a t J uly 0 1, 2 0 17 P urc ha s e s during t he pe rio d S a le s during t he pe rio d Inv e s t m e nt a s pe rc e nt a ge o f A s at M a rc h 3 1, 2 0 18 M a rk e t V a lue a s a t M a rc h 3 1, 2 0 18 N et assets R upe e s in '0 0 0 ' Go P Ijara Sukuk XVI 18-Dec-2015 to 18-Dec-2018 1,000 - - 1,000 M a rk e t v a lue o f to tal inv e s t m e nt s - - - - - - - - - - - - - %- - - - - - - - - - - - - 99,990 3% 0.40 99,990 Carrying Value as at March 31, 2018 101,990 Net unrealised appreciation on re-measurement of investments classified as 'financial assets at fair value through profit or loss' 4.1.2 (2,000) Commercial Paper F a c e V a lue N a m e o f t he inv e s t e e c o m pa ny Hascol Petroleum Ltd Is s ue D a t e A s a t J uly 0 1, 2 0 17 P urc ha s e s during t he pe rio d 29-Dec-2017 to 29-June-2018 150,000 Inv e s t m e nt a s pe rc e nt a ge o f M a t ure d S a le s during t he pe rio d - A s at M a rc h 3 1, 2 0 18 150,000 M a rk e t V a lue a s a t M a rc h 3 1, 2 0 18 147,369 N et assets M a rk e t v a lue o f to tal inv e s t m e nt s 4% 0.60 147,369 5 PROVISION FOR SINDH WORKERS' WELFARE FUND The legal status of applicability of Worker's Welfare Fund and Sindh Workers' Welfare Fund is same as that disclosed in note 16 to the annual audited financial statements of the Fund for the year ended June 30, 2017. The Fund, being prudent, recognised provision for SWWF amounting to Rs.4.021 million for the period ended March 31, 2018 in this condensed interim financial information, Had the provision not been made, net assets value per unit at March 31, 2018 would have been higher by Rs. 0.0123 per unit (June 30, 2017: Rs. 0.0077 per unit). 6 CONTINGENCIES AND COMMITMENTS There were no contingencies and commitments outstanding as at March 31, 2018 and June 2017 7 TAXATION The income of the Fund is exempt from income tax under clause 99 of Part I of the Second Schedule to the Income Tax Ordinance, 2001 subject to the condition that not less than ninety percent of its accounting income for the period, as reduced by capital gains, whether realised or unrealised, is distributed to the unit holders. The management intends to distribute atleast 90% of the Fund's net accounting income earned by the year end to the unit holders. Accordingly, no provision for taxation has been made in this condensed interim financial information. The Fund 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. 8 TOTAL EXPENSE RATIO Total Expense Ratio (all the expenses incurred during the period divided by Average net assets value for the period) is 1.12 % per annum including 0.26 % representing government levies on collective investment scheme such as sales tax, Sindh worker's welfare fund and SECP fee for the period. Page 16 Quarterly Report
18. NAFA RIBA FREE SAVINGS FUND TRANSACTIONS WITH CONNECTED PERSONS 9 9 .1 Connected persons include NBP Fund Management Limited Formerly NBP Fullerton Asset Management Limited (Management Company) being the Management Company, Central Depository Company of Pakistan Limited being the Trustee, National Bank of Pakistan and Alexandra Fund Management Pte. Limited being the sponsors, other collective investment schemes managed by the Management Company and directors and officers of the Management Company. 9.2 The transactions with connected persons are in the normal course of business, at contracted rates and terms determined in accordance with market rates. 9.3 Remuneration to the Management Company is determined in accordance with the provisions of the NBFC Regulations and the Trust Deed. 9.4 Remuneration payable to the Trustee is determined in accordance with the provisions of the NBFC Regulations and the Trust Deed. ---- (Un-Audited) ----Nine month Period ended March 31, 2018 9.5 Transactions during the period NBP Fund Management Limited Formerly NBP Fullerton Asset Management Limited (Management Company) Management remuneration for the period Sale Load for the period Sindh sales tax on remuneration of the Management Company Accounting and operational charges to the Management Company March 31, 2017 -----Rupees in '000---------- 13,726 626 1,784 2,379 5,516 211 717 947 2,660 346 35 1,435 187 5 Employees of Management Company Units issued / transferred in 2,349,458 units; (2017: 1,275,118 units) Units redeemed / transferred out 1,587,688 units; (2017: 1,384,442 units) 24,363 16,469 13,301 14,561 PTCL EMPLOYEES GENERAL PROVIDENT FUND Unit holder with more than 10% units holding Units issued / transferred in 1,011,937,059 units (2017: 21,195,572 units) Units redeemed / transferred out 171,482,445 units (2017: Nil units) 97,563 16,571 225,290 - NBP Funds Employee Provident Fund (Management Company) Units issued / transferred in 1,532,336 units (2017: 215,276 units) Units redeemed / transferred out 1,214,627 units (2017: Nil units) 15,725 12,649 2,250 - Central Depository Company of Pakistan Limited - Trustee Remuneration Sindh Sale tax on Remuneration CDS Charges PAKISTAN MOBILE COMMUNICATION LTD PROVIDENT FUND Units redeemed / transferred out Nil units (2017: 423,930 units) SERVICE SALES CORP.PROVIDENT FUND TRUST Units issued / transferred in 2,517,401units (2017:Nil units) Units redeemed / transferred out 431,929 units (2017: Nil units) Quarterly Report 26,155 4,511 Page 17 4,430 -
19. NAFA RIBA FREE SAVINGS FUND ---- (Un-Audited) ----Nine month ended March 31, 2018 TELENOR PAKISTAN (PVT) LTD EMPLOYEES P.F (ISLAMIC) Units issued / transferred in 3,147,362 units (2017:Nil units) Units redeemed / transferred out 160,817units (2017:Nil units) -----Rupees in '000---------- 33,000 1,700 - 9 - 45,600 - 1,800 551 - 17,706 - PROSPERITY WEAVING MILLS Units redeemed / transferred out 876 units (2017: Nil units) BYCO PETROLEUM PAKISTAN LIMITED EMPLOYEES PROVIDENT FUND - CPS Units issued / transferred in 4,411,722 units (2017: Nil units) MR KHALID MEHMOOD - CFO Units issued / transferred in 173,886 units (2017: Nil units) Units redeemed / transferred out 52,250 units (2017: Nil units) *Bank Islami Pakistan Limited (Common Directorship with the Management Company) Markup Income 10 Balances outstanding as at period / year end NBP Fund Management Limited Formerly NBP Fullerton Asset Management Limited (Management Company) Remuneration payable Sales load/Transfer Load payable/Sale tax. Sindh sales tax payable on remuneration of the Management Company Operational expenses Shariah Advisor Fee Central Depository Company of Pakistan Limited - Trustee Remuneration payable Sale tax on Remuneration payable CDS settlement charges payable Security deposit National Bank of Pakistan - Parent Company Balance in current account Employees of Management Company Investment held in the Fund 1,109,508 units (June 30, 2017:347,738uniits) Summit Bank Ltd. (common Directorship with the Management Company) Balance in current account *Bank Islami Pakistan Limited (Common Directorship with the Management Company) Bank balance Markup accrued NAFA Employee Provident Fund (Management Company) Investment held in the Fund 545,109 units (June 30, 2017:227,398 uniits) SERVICE SALES CORP.PROVIDENT FUND TRUST Units held: 2,085,472 (2017: Nil units) Page 18 March 31, 2017 Un-audited Audited March 31, June 30, 2018 2017 ------(Rupees in ‘000)------ 1,894 154 247 2,380 364 1,055 349 138 1,433 480 344 44 45 200 215 27 12 200 4,782 4,190 11,732 3,543 4,320 2,787 65,389 6,593 39,033 62 5,764 2,317 22,052 Quarterly Report -
20. NAFA RIBA FREE SAVINGS FUND Un-audited Audited March 31 , June 30, 2018 2017 ------(Rupees in ‘000)-----TELENOR PAKISTAN (PVT) LTD EMPLOYEES P.F Units held: 2,986,545 (2017: Nil units) MR. KHALID MEHMOOD - CHIEF FINANCIAL OFFICER Units held: 121,636 (2017: Nil units) BYCO PETROLEUM PAKISTAN LIMITED - EMPLOYEE PROVIDENT FUND - CPS Units held: 4,411,722 (2017: Nil units) 11 31,580 - 1,286 - 46,650 - DATE OF AUTHORISATION FOR ISSUE This financial information was authorised for issue by the Board of Directors of the Management Company on 30th April, 2018. 12 GENERAL Figures have been rounded off to the nearest thousand Rupees. 12.1 Corresponding figures have been rearranged and reclassified, wherever necessary, for the purpose of better presentation. No significant reclassifications have been made during the current period. For NBP Fund Management Limited (Formerly;NBP Fullerton Asset Management Limited) (Management Company) Chief Financial Officer Quarterly Report Chief Executive Officer Director Page 19