Financial Statements for the year ended June 30, 2016

Transcription

1 Financial Statements for the year ended June 30, 2016

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3 Review Report to the Unit Holders on the Statment of Compliance with the best practices of the code of corporate governance

4 04 Faysal Asset Management Faysal Money Market Fund Faysal Asset Management Limited Mr. Nauman Ansari, Chairman Mr. Razi-Ur-Rahman Khan, Director Mr. Osman Khan, Director Syed Ibad-Ur-Rehman Chishti, Director Mr. Mohammad Zahid Ahmed, Director Mr. Farooq Hadi, Director Mr. Enamullah Khan, Chief Executive Officer Chief Financial Officer and Company Secretary of the Management Company Mr. Umairullah Khan Mr. Razi-Ur-Rahman Khan, Chairman Syed Ibad-ur-Rehman Chisti, Member Mr. Osman Khan, Member HR Comittee Mr. Osman Khan, Chairman Mr. Razi-Ur-Rahman Khan, Member Syed Ibad-Ur-Rehman Chishti, Member Mr. Enamullah Khan, Member Central Depository Company of Pakistan Limited, Bank Alfalah Limited Faysal Bank Limited Askari Bank Limited UBL Ameen - Islamic Banking Habib Metropolitan Limited Allied Bank Limited Habib Bank Limited Deloitte Yousuf Adil, Chartered Accountants

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6 06 Faysal Asset Management Faysal Money Market Fund REPORT OF THE DIRECTORS OF THE MANAGEMENT COMPANY The Directors of the Faysal Asset Management Limited, the Management Company of Faysal Money Market Fund (FMMF), are pleased to present the Annual Report on the operations of FMMF along with the audited accounts, Reports of the Trustee and Auditors to the Unit Holders for the year ended June 30, SALE AND REDEMPTION OF UNITS During the year, units worth Rupees 7, million were issued and units with a value of Rupees 9, million were redeemed. UNIT HOLDERS As of June 30, 2016, total unit outstanding were 7,491,230 units with a value of Rs million were outstanding (June 30, 2015: 32,947,183 units with a value of Rs. 3, million). UNIT PRICES Unit prices are being announced on a daily basis based on the NAV of the underlying portfolio. The highest and lowest offer/redemption prices during the period as well as the prices prevailing as of June 30, 2016 were as below: Offer Price Redemption Price Highest Lowest As of June 30, ECONOMIC OUTLOOK Pakistan s economy underwent substantial progress during the course of fiscal year Almost all the critical macroeconomic indicators exhibited continuous progress which alleviated the GDP growth to reach 8-year high of 4.7%. The industrial sector activities made significant strides on the back of better energy supply and improved law and order situation. Despite the challenges on external front in the form of declining exports amid deteriorating global growth prospects and heavy agricultural losses, economic recovery process remained on track. The average inflation during FY16 declined to 47-year low of 2.86% against 4.53% in the same period last year. Such historical lows were achieved on the back of falling commodity prices and contained food inflation along with help from prudent monetary and fiscal policies. The Perishable Food Items and Transport heads registered year-on-year negative readings at -1.82% and -5.18% respectively. Likewise, all the other CPI basket items remained benign throughout the year. International reserve buffers held by State Bank of Pakistan (SBP) were effectively rebuilt during the year. By the year end, foreign exchange reserves reached to USD 18.1 billion, sufficient to finance four months of imports. Muted global oil prices, steady remittances growth, improved Foreign Direct Investments (FDI) and FX borrowing played the much needed role in consolidation of the foreign exchange reserves. According to the figures of State Bank of Pakistan (SBP), current account deficit (CAD) for the fiscal year 2016 contracted by 6.8% to USD 2.5 billion as compared to USD 2.7 billion in the same period last year. Workers remittances, despite looming concerns of slowdown in Gulf region, remained upbeat clocking in at USD 19.9 billion (up 6.4% year-on-year) as compared to USD 18.7 billion during the last fiscal year. The current account deficit was further alleviated with an impressive surge of 39% in Foreign Direct Investments (FDI) which clocked in at USD 1.3 billon as compared to USD 0.9 billion last year. This improvement came mainly on account of investment inflows coming from the China-Pakistan Economic Corridor (CPEC) project. Export, on the other hand, underwent decline of 8.6% on the back of global meltdown and low commodity prices. Nevertheless, imports bill was reduced by mere 2% owing to substantial increase in non-oil imports (up 79% to USD 31.8 billion). Accordingly, balance of payments position clocked in at USD -2.6 billion, declining by mere 0.3% as compared to the last year. CAD as % of GDP clocked in at -0.9% as compared to -0.17% during the last fiscal year. According to Pakistan Bureau of Statistics (PBS), overall Large Scale Manufacturing (LSM) sector has exhibited growth of 3.45% during July-May when compared with the same period of last year. Major industries driving the growth were a) automobiles (up 18%), b) fertilizers (up 15%), c) nonmetallic mineral products (up 11%), d) leather products (up 9%), e) chemicals (up 9%), f) rubber products (up 7%) and g) pharmaceuticals (up 6%). During the year, broad-based improvements in underlying economic indicators facilitated the State Bank of Pakistan (SBP) to cut its policy rate by a cumulative 75bps in FY16; over and above cut of 300bps in FY15. Going forward, GDP growth is anticipated to remain buoyant on the back of construction and development activities under China Pakistan Economic Corridor (CPEC) and strengthened private sector credit growth. Nonetheless, risks pertaining to challenging global environment and its looming impact on exports and remittances growth could be very critical and may undermine the growth prospects.

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8 08 Faysal Asset Management Faysal Money Market Fund REPORT OF THE DIRECTORS OF THE MANAGEMENT COMPANY INCOME DISTRIBUTION The Board of directors has not approved Final distribution as the income for year is already distributed via Interims distribution at the rate of 5.75% (i.e Rs per unit of par value of Rs.100 each). MUTUAL FUND RATING Pakistan Credit Agency (PACRA) has awarded the fund stability rating of AA+(f) for Faysal Money Market Fund (FMMF). This rating denotes High degree of stability in Net Asset Value. CORPORATE GOVERNANCE A prescribed under clause of the Listing Regulations of Pakistan Stock Exchange Limited, Statement of Compliance with the Code of Corporate Governance along with the auditors report thereon for the year ended June 30, 2016 forms part of this annual report. 1. Statements under clause of the Code: a. The financial statements, prepared by the management of the listed Fund, present its state of affairs fairly, the result of its operations, cash flows and changes in equity; b. Proper books of account of the listed Fund have been maintained; c. Appropriate accounting policies have been consistently applied in preparation of financial statements and accounting estimates are based on reasonable and prudent judgment; d. International Financial Reporting Standards, as applicable in Pakistan, have been followed in preparation of financial statements and any departures therefrom has been adequately disclosed and explained; e. The system of internal control is sound in design and has been effectively implemented and monitored; f. There are no significant doubts upon the listed Fund s ability to continue as a going concern; g. The details of taxes, duties, levies and charges outstanding, are disclosed in the financial statements; h. The number of board and committees meetings held during the year and attendance by each director forms part of this Annual Report; and i. The prescribed pattern of shareholding is given as part of this Annual Report. The sale and repurchase of units of the Fund carried out by the directors, CEO, COO, CFO, Head of Internal Audit, Company Secretary, their spouses and minor children, and the Management Company are as under: Trades By: Investment Redemption (No. of Units) Directors and Key Management Personnel 10,197 Nil PATTERN OF HOLDING The Pattern of Holding as at June 30, 2016 of FMMF is given as part of this Annual Report. AUDITORS The present auditors Messers M.Yousuf Adil & Co., Chartered Accountants retire and, being eligible, offer themselves for re-appointment. The Board endorses the recommendation of the Audit Committee for re-appointment of Messers M.Yousuf Adil & Co., Chartered Accountants as the auditors for the year ending June 30, ACKNOWLEDGEMENT The Board of Directors of the Management Company is thankful to unit holders for their confidence on the Management, the Securities and Exchange Commission of Pakistan and the management of Pakistan Stock Exchange for their valuable support, assistance and guidance. The Board also thanks the employees of the Management Company and the Trustee for their dedication and hard work. For and on behalf of the Board Karachi: September 26, 2016 Enamullah Khan Chief Executive Officer

9 Faysal Asset Management Faysal Money Market Fund 09 FUND MANAGER S REPORT Economic Review Pakistan s economy underwent substantial progress during the course of fiscal year Almost all the critical macroeconomic indicators exhibited continuous progress which alleviated the GDP growth to reach 8 year high of 4.7%. The industrial sector activities made significant strides on the back of better energy supply and improved law and order situation. Despite the challenges on external front in the form of declining exports amid deteriorating global growth prospects and heavy agricultural losses, economic recovery process remained on track. The average inflation during FY16 declined to 47 year low of 2.86% against 4.53% in the same period last year. Such historical lows were achieved on the back of falling commodity prices and contained food inflation along with help from prudent monetary and fiscal policies. The Perishable Food Items and Transport heads registered year on year negative readings at 1.82% and 5.18% respectively. Likewise, all the other CPI basket items remained benign throughout the year. International reserve buffers held by State Bank of Pakistan (SBP) were effectively rebuilt during the year. By the year end, foreign exchange reserves reached to USD 18.1 billion, sufficient to finance four months of imports. Muted global oil prices, steady remittances growth, improved Foreign Direct Investments (FDI) and FX borrowing played the much needed role in consolidation of the foreign exchange reserves. According to the figures of State Bank of Pakistan (SBP), current account deficit (CAD) for the fiscal year 2016 contracted by 6.8% to USD 2.5 billion as compared to USD 2.7 billion in the same period last year. Workers remittances, despite looming concerns of slowdown in Gulf region, remained upbeat clocking in at USD 19.9 billion (up 6.4% year on year) as compared to USD 18.7 billion during the last fiscal year. The current account deficit was further alleviated with an impressive surge of 39% in Foreign Direct Investments (FDI) which clocked in at USD 1.3 billon as compared to USD 0.9 billion last year. This improvement came mainly on account of investment inflows coming from the China Pakistan Economic Corridor (CPEC) project. Export, on the other hand, underwent decline of 8.6% on the back of global meltdown and low commodity prices. Nevertheless, imports bill was reduced by mere 2% owing to substantial increase in non oil imports (up 79% to USD 31.8 billion). Accordingly, balance of payments position clocked in at USD 2.6 billion, declining by mere 0.3% as compared to the last year. CAD as % of GDP clocked in at 0.9% as compared to 1.0% during the last fiscal year. According to Pakistan Bureau of Statistics (PBS), overall Large Scale Manufacturing (LSM) sector has exhibited growth of 3.45% during July May when compared with the same period of last year. Major industries driving the growth were a) automobiles (up 18%), b) fertilizers (up 15%), c) nonmetallic mineral products (up 11%), d) leather products (up 9%), e) chemicals (up 9%), f) rubber products (up 7%) and g) pharmaceuticals (up 6%). During the year, broad based improvements in underlying economic indicators facilitated the State Bank of Pakistan (SBP) to cut its policy rate by a cumulative 75bps in FY16; over and above cut of 300bps in FY15. Going forward, GDP growth is anticipated to remain buoyant on the back of construction and development activities under China Pakistan Economic Corridor (CPEC) and strengthened private sector credit growth. Nonetheless, risks pertaining to challenging global environment and its looming impact on exports and remittances growth could be very critical and may undermine the growth prospects. Money Market Review SBP announced six MPS Monetary Policy Statement during FY16, where discount rate and policy rate was slashed by 75bps from 7.00% to 6.25% and 6.5% to 5.75% respectively which is the all time low interest rate in the history of Pakistan on the back of i) Going forward higher inflationary projections, ii) limited credit uptick, iii) Balance of payments risk in the form of higher trade deficit going forward but China Pakistan Economic Corridor bodes well for future prospects of foreign inflows in the country. During the period under discussion of FY16 money market mostly remained illiquid and SBP conducted various OMO Injections where the total injected amount was PKR 57,764.15bn and the total participation amount was PKR 60,685.21bn. The weighted average rate of the injected amount during the quarter was 6.10%. During the same period 8 OMO Mop ups were witnessed where the mopped up amount was PKR mn at weighted average rate of 6.06%. SBP conducted fortnightly T bill auctions during FY16 where the total accepted amount was PKR 4,523.49bn where the total stipulated target of SBP was PKR 5,175bn and the cuts offs were lowered by max 89bps across all three tenors. Cut offs for the last auction of the FY16 were; 3M %, 6M % and 12M % where they were %, % and % for 3M, 6M & 12M at the start of FY16.

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12 12 Faysal Asset Management Faysal Money Market Fund REVIEW REPORT TO THE MEMBERS ON THE STATEMENT OF COMPLIANCE WITH THE CODE OF CORPORATE GOVERNANCE We have reviewed the enclosed Statement of Compliance with the best practices contained in the Code of Corporate Governance (the Code) prepared by the Board of Directors of Faysal Asset Management Limited, the Management Company of Faysal Money Market Fund (the Fund) for the year ended June 30, 2016 to comply with the requirements of Regulations of the Karachi and Pakistan Stock Exchanges where the Fund is listed. The responsibility for compliance with the Code is that of the Board of Directors of the Management Company. Our responsibility is to review, the extent where such compliance can be objectively verified, whether the Statement of Compliance reflects the status of the Management Company's compliance with the provisions of the Code and report if it does not and to highlight any non-compliance with the requirements of the Code. A review is limited primarily to inquiries of the Management Company's personnel and review of various documents prepared by the Management Company to comply with the Code. As a part of our audit of the financial statements we are required to obtain an understanding of the accounting and internal control systems sufficient to plan the audit and develop an effective audit approach. We are not required to consider whether the Board of Directors' statement on internal control covers all risks and controls or to form an opinion on the effectiveness of such internal controls, the Management Company's corporate governance procedures and risks. The Code requires the Management Company to place before the Audit Committee, and upon recommendation of the Audit Committee, place before the Board of Directors for their review and approval its related party transactions distinguishing between transactions carried out on terms equivalent to those that prevail in arm's length transactions and transactions which are not executed at arm's length price and recording proper justification for using such alternate pricing mechanism. We are only required and have ensured compliance of this requirement to the extent of the approval of the related party transactions by the Board of Directors upon recommendation of the Audit Committee. We have not carried out any procedures to determine whether the related party transactions were undertaken at arm's length price or not. Based on our review, nothing has come to our attention which causes us to believe that the Statement of Compliance does not appropriately reflect the Management Company's compliance, in all material respects, with the best practices contained in the Code as applicable to the Management Company for the year ended June 30, 2016.

13 Faysal Asset Management Faysal Money Market Fund 13 REVIEW REPORT TO THE MEMBERS ON THE STATEMENT OF COMPLIANCE WITH THE CODE OF CORPORATE GOVERNANCE Further, we highlight below instances of non-compliance with the requirements of the Code as reflected in the note reference where these are stated in the Statement of Compliance: Note reference Description 4 There had been a casual vacancy of the Board of Directors which has not been filled within the stipulated time. 16 The Audit Committee meeting was not held in the quarter ended September 30, Chartered Accountants Karachi Date: September 26, 2016

14 14 Faysal Asset Management Faysal Money Market Fund STATEMENT OF COMPLIANCE WITH THE BEST PRACTICES OF THE CODE OF CORPORATE GOVERNANCE This statement is being presented to comply with the Code of Corporate Governance (the CCG) contained in Paragraph 5.19 of Chapter 5 of Pakistan Stock Exchange Limited s Regulations (Formerly: Karachi Stock Exchange) for the purpose of establishing a framework of good governance, whereby a listed company is managed in compliance with the best practices of Corporate Governance. The Board of Directors (the Board) of Faysal Asset Management Limited (the Management Company), an unlisted public company, manages the affairs of Faysal Money Market Fund (the Fund). The Fund being a unit trust open end scheme does not have its own Board of Directors. The Management Company has applied the principles contained in the Code to the Fund in the following manner: 1. The Management Company encourages representation of independent non-executive directors. At present, the Board includes: Category Independent Director Executive Director Non-Executive Director Names Mr. Osman Asghar Mr. Enamullah Khan (CEO) Mr. Nauman Ansari Syed Ibad-Ur-Rehman Chishti Mr. Razi-Ur-Rahman Khan Mr. Mohammad Zahid Ahmed The independent directors meet the criteria of independence under clause (b) of the CCG. 2. The directors have confirmed that none of them are serving as a director on more than seven listed companies, including the Management Company. 3. All the resident directors of the Management Company are registered taxpayers and none of them have defaulted in payment of any loan to a banking company, a DFI or an NBFI, or being a Broker of a stock exchange, has been declared as a defaulter by that stock exchange. 4. A casual vacancy occurred on the board on 11 December 2015, which has subsequently been filled on 9th August, 2016, after soliciting necessary approvals from the Security and Exchange Commission of Pakistan. 5. The Management Company has prepared a Code of Conduct and has ensured that appropriate steps have been taken to disseminate it throughout the company along with its supporting policies and procedures. 6. The Board has developed a vision / mission statement, an overall corporate strategy and significant policies for the Fund. A complete record of particulars of significant policies along with the dates on which these were approved or amended has been maintained. 7. All the powers of the Board have been duly exercised and decisions on material transactions, including appointment, determination of remuneration and terms and conditions of employment of the Chief Executive Officer (CEO) and other executive and non-executive directors have been taken by the Board / shareholders. 8. The meetings of the Board were presided over by the Chairman and, in his absence, by a director elected by the Board for this purpose and the Board met at least once in every quarter, during the year. Written notices of the Board meetings, along with agenda and working papers, were circulated at least seven days before the meetings. The minutes of the meetings were appropriately recorded and circulated. 9. All the directors of the Management Company are well-conversant with the relevant laws applicable to the Fund and Management Company, its policies and procedures and provisions of memorandum and articles of association and are aware of their duties and responsibilities. The Compliance with the requirement of certification of directors is ensured. 10. The board has approved the appointment of Head of Internal Audit including his remuneration and terms and conditions of employment. 11. The Directors' report relating to the Fund for the year ended June 30, 2016 has been prepared in compliance with the requirements of the Code and fully describes the salient matters required to be disclosed.

15 Faysal Asset Management Faysal Money Market Fund 15 STATEMENT OF COMPLIANCE WITH THE BEST PRACTICES OF THE CODE OF CORPORATE GOVERNANCE 12. The financial statements of the Fund were duly endorsed by the CEO and CFO of the Management Company before approval of the Board. 13. The Directors, CEO, and executives do not hold any interest in the units of the Fund other than that disclosed in the Directors' report. 14. The Management Company has complied with all the corporate and financial reporting requirements of the CCG. 15. The Board has formed an Audit Committee. It comprises of three members, all of whom are non-executive directors of the Management Company including the chairman of the Committee. 16. The meetings of the Audit Committee were held at least once in every quarter and prior to the approval of interim and final results of the Fund as required by the CCG. However, the meeting due in first quarter of the year 2016 was held on October 6, 2015 due to delay in finalisation of the financial statements for the year ended June 30, The terms of reference of the Committee have been formed and advised to the Committee for compliance. 17. The Board has formed an HR and Compensation Committee. It comprises of four members of whom two are non-executive directors and the chairman of the Committee is an independent director. 18. The Management Company has outsourced the internal audit function to KPMG Taseer Hadi & Co. Chartered Accountants (the Firm) who are considered suitably qualified and experienced for the purpose and are conversant with the policies and procedures of the Fund. 19. The statutory auditors of the Fund have confirmed that they have been given a satisfactory rating under the Quality Control Review program of the Institute of Chartered Accountants of Pakistan (ICAP), that they or any of the partners of the firm, their spouses and minor children do not hold shares of the Management Company or units of the Fund and that the firm and all its partners are in compliance with the International Federation of Accountants (IFAC) guidelines on code of ethics as adopted by the ICAP. 20. The statutory auditors or the persons associated with them have not been appointed to provide other services except in accordance with the listing regulations and the auditors have confirmed that they have observed IFAC guidelines in this regard. 21. The closed period, prior to the announcement of interim / final results, and business decisions, which may materially affect the market price of Fund s units, was determined and intimated to directors, employees and stock exchange. 22. Material / price sensitive information has been disseminated among all market participants at once through stock exchange. 23. We confirm that all applicable material principles enshrined in the Code have been complied with. Karachi Dated: September 26, 2016 Enamullah Khan Chief Executive Officer

16 16 Faysal Asset Management Faysal Money Market Fund INDEPENDENT AUDITORS REPORT TO THE UNIT HOLDERS

17 Faysal Asset Management Faysal Money Market Fund 17 INDEPENDENT AUDITORS REPORT TO THE UNIT HOLDERS September 26, 2016

18 18 Faysal Asset Management Faysal Money Market Fund STATEMENT OF ASSETS AND LIABILITIES AS AT JUNE 30, 2016 Note June 30, June 30, (Rupees) Assets Bank balances and term deposit receipts 7 1,111,521, ,853,087 Investments 8 200,000,000 2,438,353,840 Prepayments, deposits and other receivables 9 10,377,903 4,581,834 Preliminary expenses and floatation costs ,259 Receivable against sale of units ,810,702 - Total assets 1,476,709,881 3,368,060,020 Liabilities Payable to the Management Company ,914 2,272,812 Remuneration payable to the Trustee , ,135 Accrued and other liabilities 14 35,160,756 35,916,504 Payable against redemption of units ,211,753 - Total liabilities 719,379,509 38,435,451 Net assets 757,330,372 3,329,624,569 Unit holders fund (as per the statement attached) 757,330,372 3,329,624,569 TRUE TRUE Contingencies and commitments (Number of units) Number of units in issue 7,491,230 32,947, (Rupees) Net asset value per unit The annexed notes from 1 to 24 form an integral part of these financial statements. For Faysal Asset Management Limited (Management Company) Chief Executive Officer Director Director

19 INCOME STATEMENT FOR THE YEAR ENDED JUNE 30, 2016 Faysal Asset Management Faysal Money Market Fund 19 June 30, June 30, Note (Rupees) Income Profit earned on government securities - designated 'at fair value through profit or loss' 92,791, ,442,713 Return on bank balances and term deposit receipts 51,376, ,945,745 Return on clean placements designated 'held to maturity' 8,399,041 17,514,483 Return on certificates of investment and commercial papers classified as 'held to maturity' 440,364 72,741,448 Net gain on investments - designated 'at fair value through profits or loss'; -Net capital gain on sale of investments 1,474,510 8,168,553 -Net unrealised gain / (loss) on revaluation of investments (391,128) 1,474,510 7,777,425 Total income 154,481, ,421,814 Expenses Remuneration of the Management Company ,089,643 34,381,237 Provision for indirect taxes and duties ,308,263 6,326,148 Sales tax on management fee ,532,550 5,157,185 Remuneration of the Trustee ,445,267 3,972,369 Sales tax on Trustee fee ,337 - Brokerage 278, ,565 Bank charges 159, ,907 Auditors' remuneration , ,099 SECP annual fee ,695,613 3,223,224 Legal and professional - 142,857 Fees and subscriptions 352, ,025 Amortisation of preliminary expenses and floatation cost , ,995 Printing and other expenses 247, ,704 Provision for Workers' Welfare Fund ,569,504 Total expenses 30,211,767 57,160,819 Net income from operating activities 124,269, ,260,995 Element of income/ (loss) and capital (losses) / gains included in prices of units sold less those in units redeemed - net (81,450,843) (274,355,282) Net income for the year before taxation 42,819,080 76,905,713 Taxation Net income for the year after taxation 42,819,080 76,905,713 Other comprehensive income for the year - - Total comprehensive income for the year 42,819,080 76,905,713 The annexed notes from 1 to 24 form an integral part of these financial statements. For Faysal Asset Management Limited (Management Company) Chief Executive Officer Director Director

20 20 Faysal Asset Management Faysal Money Market Fund FOR THE YEAR ENDED JUNE 30, 2016 DISTRIBUTION STATEMENT FOR THE YEAR ENDED JUNE 30, 2016 June 30, June 30, (Rupees) Undistributed income brought forward [includes unrealised loss on investments of Rs. 391,128 (2014: unrealised gain of Rs. Nil)] 24,924,480 18,114,057 Interim bonus distribution for the period ended June 18, Rs per unit declared for distribution on June 19, (2,112,673) Interim cash distribution for the period ended June 18, Re per unit declared for distribution on June 19, (4,072,206) Further interim cash distribution for the period ended June 18, Rs.7.75 per unit declared for distribution on June 19, (63,910,411) Interim cash distribution for the period ended June 28, Rs (43,726,268) - per unit declared for distribution on June 29, 2016 Net income for the year after taxation 42,819,080 76,905,713 Undistributed income carried forward 24,017,292 24,924,480 [includes unrealised gain on investments of Rs. Nil (2015: unrealised loss on investments of Rs. 391,128)] The annexed notes from 1 to 24 form an integral part of these financial statements. For Faysal Asset Management Limited (Management Company) Chief Executive Officer Director Director

21 Faysal Asset Management Faysal Money Market Fund 21 FOR THE YEAR ENDED JUNE 30, 2016 CASH FLOW STATEMENT FOR THE YEAR ENDED JUNE 30, 2016 June 30, June 30, Note (Rupees) CASH FLOWS FROM OPERATING ACTIVITIES Net income for the year before taxation 42,819,080 76,905,713 Adjustments for non-cash and other items: Profit earned on government securities - designated 'at fair value through profit or loss' (92,791,406) (178,442,713) Return on bank balances and term deposit receipts (51,376,369) (131,945,745) Return on clean placements designated 'held to maturity' (8,399,041) (17,514,483) Return on certificates of investment and commercial papers designated 'held to maturity' (440,364) (72,741,448) Net capital gain on sale of investments - designated 'at fair value through profit or loss' (1,474,510) (8,168,553) Net unrealised (gain) / loss on revaluation of investments - designated 'at fair value through profit or loss' - 391,128 Element of loss / (income) and capital losses / (gains) included in prices of units sold less those in units redeemed - net 81,450, ,355,282 Amortisation of preliminary expense and floatation costs 271, ,995 (29,940,508) (56,553,824) (Increase) / decrease in assets Prepayments, deposits and other receivables (196,652) 9,181,506 Increase / (decrease) in liabilities Payable to the Management Company (1,473,898) (1,471,182) Remuneration payable to the Trustee (38,049) (118,147) Accrued and other liabilities (4,062,788) 10,407,030 (5,574,735) 8,817,701 Proceeds from sale of investments 14,165,846,806 34,922,767,128 Payment made against purchase of investments (11,836,880,263) (35,462,940,577) Profits and returns received 61,576, ,483,811 Net cash generated from / (used in) operating activities 2,354,831,258 (321,244,255) CASH FLOWS FROM FINANCING ACTIVITIES Amounts received against issue of units 6,932,186,958 12,133,616,520 Payments made against redemption of units (9,056,623,759) (14,278,934,920) Dividend paid (43,726,268) (74,401,226) Net cash used in financing activities (2,168,163,069) (2,219,719,626) Net increase in cash and cash equivalents during the year 186,668,189 (2,540,963,881) Cash and cash equivalents at the beginning of the year 924,853,087 3,465,816,968 Cash and cash equivalents at the end of the year 7 1,111,521, ,853,087 The annexed notes from 1 to 24 form an integral part of these financial statements. For Faysal Asset Management Limited (Management Company) Chief Executive Officer Director Director

22 22 Faysal Asset Management Faysal Money Market Fund STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUND FOR THE YEAR ENDED JUNE 30, 2016 June 30, June 30, (Rupees) Net asset value per unit at the beginning of the year Net asset value per unit at the end of the year Net assets at the beginning of the year 3,329,624,569 5,191,664,591 Amounts received on issue of units * 7,086,997,660 12,133,616,520 Amounts paid on redemption of units ** (9,739,835,512) (14,278,934,920) (2,652,837,852) (2,145,318,400) Element of (income) / loss and capital losses / (gains) included in prices of units sold less those in units redeemed - net 81,450, ,355,282 Interim cash distribution for the period ended June 18, Re per unit declared for distribution on June 19, (4,072,206) Interim cash distribution for the period ended June 18, Rest 7.75 per unit declared for distribution on June 19, (63,910,411) Interim cash distribution for the period ended June 28, Re (43,726,268) - per unit declared for distribution on June 29, 2016 Net capital gain on sale of investments 1,474,510 8,168,553 Net unrealised gain on revaluation of investments - (391,128) Other net income for the year 41,344,570 69,128,288 Other comprehensive income for the year - - Total comprehensive income for the year 42,819,080 76,905,713 Net assets at the end of the year 757,330,372 3,329,624, (Number of units) * Number of units issued (including Nil bonus units issued during the year ended June 30, 2016 and 3,865,676 bonus units issued during the year ended June 30, 2015) 67,584, ,091,318 ** Number of units redeemed 93,040, ,620,472 The annexed notes from 1 to 24 form an integral part of these financial statements. For Faysal Asset Management Limited (Management Company) Chief Executive Officer Director Director

23 Faysal Asset Management Faysal Money Market Fund 23 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, LEGAL STATUS AND NATURE OF BUSINESS Faysal Money Market Fund (the Fund) has been established under the Non-Banking Finance Companies (Establishment and Regulation), Rules 2003 (the NBFC Rules) and has been authorised as a unit trust scheme by the Securities and Exchange Commission of Pakistan (SECP) on June 04, It has been constituted under a Trust Deed, dated April 22, 2009 under the name of Faysal Islamic Balanced Growth Fund and thereafter as Faysal Money Market Fund vide supplemental Trust Deed, dated October 18, 2010 between Faysal Asset Management Limited (the Management Company), a company incorporated under the Companies Ordinance, 1984 and Central Depository Company of Pakistan Limited (CDC) as the Trustee, also incorporated under the Companies Ordinance, The Fund is an open ended money market fund and offers units for public subscription on a continuous basis. The units are transferable and can also be redeemed by surrendering to the Fund. The units are listed on Pakistan Stock Exchange Limited (Formerly Karachi Stock Exchange Limited). The Fund was launched on December 13, The principal activity of the Fund is to make investments in fixed income securities including money market instruments. The Fund is categorised as a "Money Market Scheme" as per the Circular No.7 of 2009 issued by SECP. The Pakistan Credit Rating Agency Limited (PACRA) has assigned a "AA+(f)" stability rating to Faysal Money Market Fund as of December 31, JCR - VIS has awarded an "AM3++ " rating to the Management Company as of May 4, STATEMENT OF COMPLIANCE These financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan. Approved accounting standards comprise such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) as are notified under the Companies Ordinance, 1984, the requirements of the Trust Deed, the NBFC Rules, the Non Banking Finance Companies and Notified Entities Regulation, 2008 (the NBFC Regulations) and directives issued by the SECP. Wherever the requirements of the Trust Deed, the NBFC Rules, the NBFC Regulations or the directives issued by the SECP differ with the requirements of IFRS, the requirements of the Trust Deed, the NBFC Rules, the NBFC Regulations or the requirements of the said directives prevail. 3. BASIS OF MEASUREMENT 3.1 These financial statements have been prepared under the historical cost convention, except for certain investments which are accounted for as stated in notes 4.3 and 4.4 below. 3.2 These financial statements are presented in Pak rupees, which is the Fund's functional and presentation currency.

24 24 Faysal Asset Management Faysal Money Market Fund NOTES TO THE FINANCIAL STATEMENTS 4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies adopted in the preparation of these financial statements are consistent with those of the previous financial year except as described in note New Standards The Fund has adopted the following accounting standard which became effective for the current year: IFRS 10 Consolidated Financial Statements IFRS 11 Joint Arrangements IFRS 12 Disclosure of Interests in Other Entities IFRS 13 Fair Value Measurement The adoption of the above accounting standards did not have any effect on the financial statements except for certain disclosures due to adoption of IFRS 13 (see note 21). 4.2 Element of income / (loss) and capital gains / (losses) included in prices of units issued less those in units redeemed An equalisation account called the "Element of income / (loss) and capital gains / (losses) included in prices of units issued less those in units redeemed" (the element) is created in order to prevent the dilution of per unit income and distribution of income already paid out on redemption. The element is arrived at by comparing the unit prices with opening Ex - NAV at the beginning of the financial year. The element so computed is recognised in the income statement except to the extent that the amount represented by unrealised appreciation / diminution arising on available-for-sale investments is included in distribution statement. The net element of income / (loss) and capital gains / (losses) included in prices of units sold less those in units redeemed during an accounting period is transferred to the income statement. 4.3 Investments The investments of the Fund, upon initial recognition, are classified at fair value through profit or loss, available-for-sale or held to maturity investments as appropriate. All investments, are initially measured at fair value plus, in the case of investments not at fair value through profit or loss, transaction costs that are directly attributable to acquisition. All regular way purchases / sales of investments that require delivery within the time frame established by the regulation of market convention are recognised on the trade date, i.e. the date on which the Fund commits to purchase / sell the investment. Regular way purchases / sales of investments require delivery of securities within the period generally established by the regulation or market convention such as "T+2".

25 Faysal Asset Management Faysal Money Market Fund 25 NOTES TO THE FINANCIAL STATEMENTS At fair value through profit or loss This category has two sub-categories, namely; financial instruments held-for-trading, and those designated at fair value through profit or loss. - Investments which are acquired principally for the purposes of generating profit from short term fluctuation in price or are part of the portfolio in which there is recent actual pattern of short term profit taking are designated held-for-trading. - Investments designated at fair value through profit or loss upon initial recognition include those group of financial assets which are managed and their performance evaluated on a fair value basis, in accordance with the documented risk management / investment strategy. These investments are initially recognised at fair value, being the cost of the consideration given. After initial measurement, investment at fair value through profit or loss are carried at fair value and the gains or losses on revaluation are recognised in the income statement Held to maturity investments Investment with fixed maturities and fixed or determinable payments are designated 'held-till-maturity investments' when management has both the intention and ability to hold to maturity. After initial measurement, such investments are carried at amortised cost less any provision for impairment except for in case of debt securities and government securities, which are carried at fair value in accordance with the requirements of the NBFC Regulations Available-for-sale investments Investments which are not classified in any of the preceding categories are designated available-forsale investments. After initial measurement, such investments are measured at fair value with unrealised gain or loss recognised directly in the unit holders' fund until the investment is derecognised or determined to be impaired at which time the cumulative gain or loss previously recognised in unit holders' fund is taken to the income statement. Fair value of investments is determined as follows: Government securities These are valued by reference to the quotations obtained from Reuters page. Listed shares These are valued on the basis on closing market prices quoted on the respective stock exchange. Debt securities These are valued at the rates quoted by Mutual Funds Association of Pakistan (MUFAP) in accordance with the SECP's Circular No.33 of 2012 dated October 24, 2012, read with Regulation 66 (b) of the NBFC Regulation.

26 26 Faysal Asset Management Faysal Money Market Fund NOTES TO THE FINANCIAL STATEMENTS 4.4 Derivatives Derivative instruments held by the Fund generally comprise of futures contracts, options and forwards contracts etc. in the capital market. These are initially recognised at cost and are subsequently remeasured at their fair value. The fair value of derivative instruments is calculated as being the net difference between the contract price and the closing price reported on the primary exchange of the instrument. Derivative with positive market values (un-realised gains) are included in other assets and derivatives with negative market values (un-realised losses) are included in other liabilities in the statement of assets and liabilities. The resultant gains and losses are included in income statement. Derivative financial instruments entered into by the Fund do not meet the hedging criteria as defined by IAS-39 Financial Instruments: Recognition and Measurement, consequently hedge accounting is not used by the Fund. 4.5 Securities under repurchase / resale agreements Transactions of purchase under resale (reverse-repo) of marketable and government securities are entered into at contracted rates for specified periods of time. Securities purchased with a corresponding commitment to resell at a specified future date (reverse-repos) are not recognised in the statement of assets and liabilities. Amounts paid under these agreements are included in receivable in respect of reverse repurchase transactions. The difference between purchase and resale price is treated as income from reverse repurchase transactions and accrued over the life of the reverse-repo agreement. Transactions of sale under repurchase (repo) of marketable and government securities are entered into at contracted rates for specified periods of time. Securities sold with a simultaneous commitment to repurchase at a specified future date (repos) continue to be recognised in the statement of assets and liabilities and are measured in accordance with accounting policies for investment securities. The counterparty liabilities for amounts received under these transactions are recorded as financial liabilities. The difference between sale and repurchase price is treated as borrowing charges and accrued over the life of the repo agreement. 4.6 Provisions Provisions are recognised when the Fund has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the obligation can be made. Provisions are regularly reviewed and adjusted to reflect the current best estimate. 4.7 Issue and redemption of units Units issued are recorded at the offer price prevalent on the day on which application form, (complete in all respects) is received. The offer price represents the net asset value of units at the end of the day plus the allowable sales load. The sales load is payable to the Management Company as processing fee. Issue of units is recorded on acceptance of application for sale. Units redeemed are recorded at the redemption price, prevalent on the day on which the redemption form (complete in all respects) is accepted. The redemption price represents the net asset value of units at the end of the day. Redemption of units is recorded on acceptance of application for redemption.

27 Faysal Asset Management Faysal Money Market Fund 27 NOTES TO THE FINANCIAL STATEMENTS redemption. 4.8 Cash and cash equivalents Cash and cash equivalents comprise cash at banks and short-term deposits with an original maturity of three months or less. Cash and cash equivalents are carried in the statement of assets and liabilities at cost. 4.9 Revenue recognition Gain or loss on sale of marketable and government securities is accounted for in the year in which it arises. Unrealised gains or losses arising on revaluation of investments designated 'at fair value through profit or loss' are included in the income statement in the period in which they arise. Mark-up on bank balances, term deposit receipts, government securities, clean placements and certificate of investment are recognised on a time proportion basis using effective interest rate method Expenses All expenses, including management fee, SECP fee and trustee fee are recognised in the income statement on an accrual basis Taxation The Fund is exempt from taxation under clause 99 of Part I of the 2nd Schedule to 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 unit holders Net asset value (NAV) per unit The net asset value per unit disclosed in the statement of assets and liabilities is calculated by dividing the net assets of the Fund by the number of units in issue at the year end Distribution to unit holders Distribution to unit holders made subsequent to the statement of assets and liabilities date are considered as non-adjusting events and are recognised in the financial statements in the period in which such dividends are declared and approved by the Board of Directors of the Management Company Preliminary expenses and floatation costs Preliminary expenses and floatation costs represent expenditure incurred in connection with incorporation, registration, establishment and authorisation of the Fund till the close of the Initial Public Offering period. These costs are amortised over a period not exceeding sixty months in accordance with the Trust deed.

28 28 Faysal Asset Management Faysal Money Market Fund NOTES TO THE FINANCIAL STATEMENTS 4.15 Financial assets and financial liabilities All financial assets and financial liabilities are recognised at the time when the Fund becomes a party to the contractual provisions of the instrument. Financial assets are derecognised when the contractual rights to receive cash flows related to the asset expires. Financial liabilities are derecognised when they are extinguished, that is, when the obligation specified in the contract is discharged, cancelled, or expires. Any gain or loss on derecognition of the financial assets and financial liabilities is taken to income statement currently. Financial assets carried in the statement of assets and liabilities include bank balances, deposits and other receivables and investments. Financial liabilities carried in the statement of assets and liabilities include remuneration payable to the Management Company, remuneration payable to the Trustee and accrued and other liabilities. Impairment of financial assets An assessment is made at each reporting date to determine whether there is objective evidence that a specific financial asset may be impaired. If such evidence exists, any impairment loss, is recognised in the income statement. Impairment is determined as follows: (a) (b) (c) for assets carried at amortised cost, impairment is based on estimated cash flows discounted at the original effective interest rate; for assets carried at fair value, impairment is the difference between cost and fair value; for assets carried at cost, impairment is present value of future cash flows discounted at the current market rate of return for a similar financial asset. For available-for-sale equity investments, reversal of impairment losses are recorded as increases in cumulative changes in fair value through unit holder's fund. In addition, a provision is made to cover impairment for specific groups of assets where there is a measurable decrease in estimated future cash flows. Offsetting of financial assets and liabilities Financial assets and financial liabilities are only 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 amount and the Fund intends to either settle on a net basis, or to realise the asset and settle the liability simultaneously Zakat payable Zakat payment is the responsibility of each unit holder. Nevertheless, the fund follows the provisions of Zakat and Ushr Ordinance, Units held by individual resident Pakistani shareholders are subject to 2.5% of the par value of the unit under the said Ordinance, except those exempted from Zakat. Zakat is deducted at source from dividend or from redemption proceeds, if units are redeemed during the Zakat year before payment of Zakat.

29 Faysal Asset Management Faysal Money Market Fund 29 NOTES TO THE FINANCIAL STATEMENTS 5. ACCOUNTING ESTIMATES AND JUDGMENTS The preparation of financial statements requires management to make estimates, judgments and assumptions that effect the application of policies and reported amounts 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 judgments about carrying values of assets and liabilities. The estimates and underlying assumptions are reviewed on an ongoing basis. Judgments made by management in the application of accounting policies that have significant effect on the financial statements and estimates with a significant risk of material adjustment are explained in note 4.3, 4.4 and 4.15 to the financial statements. 6. STANDARDS AND AMENDMENTS TO APPROVED ACCOUNTING STANDARDS THAT ARE NOT YET EFFECTIVE The following revised standards and amendments with respect to the approved accounting standards as applicable in Pakistan would be effective from the dates mentioned below against the respective standards and amendments: Standard Effective date (accounting periods beginning on or after) IFRS 2 Share-based Payments Classification and Measurement of Share-based Payments Transactions (Amendments) January 01, 2018 IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interests in Other Entities and IAS 28 Investment in Associates and Joint Ventures Applying the Consolidation Exception (Amendment) January 01, 2016 Standard IFRS 10 Consolidated Financial Statements and IAS 28 Investment in Associates and Joint Ventures - Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendment) IFRS 11 Joint Arrangements - Accounting for Acquisition of Interest in Joint Venture (Amendment) IAS 1 Presentation of Financial Statements - Disclosure Initiative (Amendment) IAS 7 Financial Instruments: Disclosures - Disclosure Initiative - (Amendment) IAS 12 Income Taxes Recognition of Deferred Tax Assets for Unrealized losses (Amendments) Effective date (accounting periods beginning on or after) Not yet finalized January 01, 2016 January 01, 2016 January 01, 2017 January 01, 2017

30 30 Faysal Asset Management Faysal Money Market Fund NOTES TO THE FINANCIAL STATEMENTS IAS 16 Property, Plant and Equipment and IAS 38 intangible assets - Clarification of Acceptable Method of Depreciation and Amortization (Amendment) IAS 16 Property, Plant and Equipment IAS 41 Agriculture Agriculture: Bearer Plants (Amendment) IAS 27 Separate Financial Statements Equity Method in Separate Financial Statements (Amendment) January 01, 2016 January 01, 2016 January 01, 2016 The above standards and amendments are not expected to have any material impact on the Fund's financial statements in the period of initial application. In addition to the above standards and amendments, improvements to various accounting standards have also been issued by the IASB. Such improvements are generally effective for accounting periods beginning on or after January 01, Further, following new standards have been issued by IASB which are yet to be notified by the SECP for the purpose of applicability in Pakistan. Standards IFRS 1 - First time adoption of International Financial Reporting Standards IFRS 9 Financial Instruments: Classification and Measurement IFRS 14 Regulatory Deferral Accounts IFRS 15 Revenue from Contracts with Customers IFRS 16 Leases June 30, June 30,

31 Faysal Asset Management Faysal Money Market Fund 31 NOTES TO THE FINANCIAL STATEMENTS IFRS 16 Leases 7. BANK BALANCES AND TERM DEPOSIT RECEIPTS Note June 30, June 30, (Rupees) Cash at bank - PLS saving accounts 7.1 1,111,521, ,853,087 Term deposit receipts ,000,000 1,111,521, ,853, These carry mark-up ranging between 3.8% to 7.6% (June 30, 2015: 4.5% to 6.3%) per annum and include a balance of Rs. 2.4 million ( June 30, 2015: Rs. 2.5 million) held with Faysal Bank Limited (a related party) INVESTMENTS This carried mark-up 7.40% per annum and matured. At fair value through profit or loss - designated 'at fair value through profit or loss' Note June 30, June 30, (Rupees) Government securities 8.1-2,056,393,600 Held to Maturity Clean placements ,000, ,738,630 Certificate of investment - 280,221, ,000, ,960, ,000,000 2,438,353,840

32 32 Faysal Asset Management Faysal Money Market Fund NOTES TO THE FINANCIAL STATEMENTS 8.1 Government securities - designated 'at fair value through profit or loss' Particulars Rate of return per annum Face value As at July 01, 2015 Purchased during the year Sold during the year Matured during the year As at June 30, Balance as at June 30, Carrying value Market value (Rupees) Unrealised gain/(loss) on revaluation Market value as percentage of total investments Market value as percentage of net assets Treasury bills - 3 months - 600,000,000 3,250,000,000 2,150,000,000 1,700,000, Treasury bills - 6 months - 1,485,000,000 5,075,000,000 3,560,000,000 3,000,000, Treasury bills - 1 year - - 1,695,000,000 1,000,000, ,000, Pakistan Investment Bonds-3 years - 750,000, ,000, ,085,000,000 10,770,000,000 7,460,000,000 5,395,000, Clean placements - held to maturity Name of investee company Face value Rate of return per annum As at July 01, 2015 Purchased during the period Matured during the period As at June 30, 2016 Carrying value as at June 30, 2016 Maturity Long term rating Face value as percentage of total investments Face value as percentage of net assets (Rupees) Pak Brunei Investment Company Limited 7.00% 100,000,000 1,145,000,000 1,045,000, ,000, ,000,000 August 25, 2016 AA+ 100% 26.41% 8.3 Certificates of investment - held to maturity Name of investee company Face value Rate of return per annum As at July 01, 2015 Purchased during the period Matured during the period As at June 30, 2016 Carrying value as at June 30, 2016 Maturity Long term rating Face value as percentage of total investments Face value as percentage of net assets (Rupees) Pak Brunei Investment Company Limited 275,000, ,000, Details of non-compliant investments with the investment limit specified by Regulation 55 of the NBFC Regulations Name of non-compliant investment Note Type of investment Value of investment Limit of investment in single entity as a percentage of the assets Investment as at year end as a percentage of Net assets Gross assets Pak Brunei Investment Company Limited Clean placements 200,000,000 10% 26.41% 13.30% The exposure limit of investment in a single entity as a percentage of net assets exceeded by 16% against the prescribed limit of 10% of the total net assets as required under the NBFC Regulations. The disclosure for breach of exposure limit is made as required by the circular no 16 of 2010 dated July 07, 2010 by SECP. Exposure limit exceeded the prescribed limit of 10% to any single entity due to reduction of fund size. However, the NBFC Regulations allow four months time period to regularize these exposures.

33 Faysal Asset Management Faysal Money Market Fund 33 NOTES TO THE FINANCIAL STATEMENTS 8.5 Net unrealised gain on revaluation of investments - designated 'at fair value through profit or loss' June 30, June 30, (Rupees) Market value of investments - 2,056,393,600 Less: cost of investments - (2,056,784,728) - (391,128) Net unrealised loss on investments at the beginning of the year 391,128 - Realised on disposal during the year (391,128) (391,128) 9. PREPAYMENTS, DEPOSITS AND OTHER RECEIVABLES - considered good Security deposit 100, ,000 Prepayments - 87,014 Return receivable on bank balances and term deposit receipts 9.1 8,730,010 4,394,820 Advance income recoverable ,666 - Markup receivable on Clean Placements 1,264,227-10,377,903 4,581, This includes return receivable amounting to Rs. 21,269 (June 30, 2015: Rs. 14,294) on balance held with Faysal Bank Limited, a related party. The income of mutual funds is exempt from tax under clause (99) of Part I of the Second Schedule of the Income Tax Ordinance However, advance income tax has been deducted by banks on bank profit paid to the Fund. The Fund has recorded the amount as advance income tax as it is confident that the amount will be returned/adjusted. 10. PRELIMINARY EXPENSES AND FLOATATION COSTS June 30, June 30, (Rupees) Preliminary expenses and floatation costs 271, ,254 Amortisation during the year (271,259) (606,995) - 271, Preliminary expenses and floatation costs represent expenditure incurred prior to the commencement of operations of the Fund as incurred by the Management Company and have been amortised over a period of five years commencing from December 13, RECEIVABLE AGAINST SALE OF UNITS June 30, June 30, (Rupees) Receivable against sale of units ,810,702 -

34 34 Faysal Asset Management Faysal Money Market Fund NOTES TO THE FINANCIAL STATEMENTS 11.1 This represents receivable amount from Faysal Saving Growth Fund on account of conversion / switching of units on the request of invetors. The amount has been subsequently received. 12. PAYABLE TO THE MANAGEMENT COMPANY Note June 30, June 30, (Rupees) Management fee payable ,802 1,976,357 Sales tax on management fee payable , , ,914 2,272, The Management Company is entitled to a remuneration for services rendered to the Fund under the provisions of the NBFC Regulations during the first five years of a Fund s existence of an amount not exceeding three percent of the average annual net assets of the Fund and thereafter of an amount equal to two percent of such assets. The Management Company has charged its remuneration at the rate of 0.80% per annum (June 30, 2015: 0.80% per annum) of the daily net asset value of the Fund. The Government of Sindh has levied Sindh Sales Tax on services at the rate of 14% (June 30, 2015: 15%) on the remuneration of the Management Company through the Sindh Sales Tax on Services Act, The SECP has introduced "expense ratio" vide amendments in the NBFC Regulations dated November 25, 2015, whereby, the total expense ratio of income scheme shall be capped at 2% of average daily net assets value of the scheme. The regulation further states that for the purpose of expense ratio, expenses incurred in relation to any government levy on funds such as sales tax, federal excise duty, SECP fee, etc. shall be excluded while calculating expense ratio. 13. REMUNERATION PAYABLE TO THE TRUSTEE - CDC Note June 30, June 30, (Rupees) Remuneration to the Trustee , ,135 Sales tax on Trustee fee , , , The Trustee is entitled to a monthly remuneration for services rendered to the Fund under the provisions of the Trust Deed as per the tariff specified therein, based on the daily net asset value of the Fund The Government of Sindh has levied Sindh Sales Tax on services at the rate of 14% on the remuneration of the Trustee through the Sindh Sales Tax on Services Act, June 30, June 30, Note (Rupees) ACCRUED AND OTHER LIABILITIES SECP annual fee payable ,695,612 3,223,224 Accrued liabilities 1,205,202 1,458,816 With holding tax payable - 2,281,562 Provision for Workers' Welfare Fund ,100,029 18,100,029 Provision for indirect taxes and duties ,159,913 10,852,873 35,160,756 35,916,504

35 Faysal Asset Management Faysal Money Market Fund 35 NOTES TO THE FINANCIAL STATEMENTS This represents annual fee payable to the SECP in accordance with the NBFC Regulations, whereby the Fund is required to pay annually an amount equal to 0.075% (June 30, 2015: 0.075%) per annum of the daily net asset value of the Fund. The Finance Act, 2008 introduced an amendment to the Workers' Welfare Fund Ordinance, 1971 (WWF Ordinance). As a result of this amendment it is alleged that all Collective Investment Schemes / mutual funds (CISs) whose income exceeds Rs.0.5 million in a tax year, have been brought within the scope of the WWF Ordinance, thus rendering them liable to pay contribution to WWF at the rate of two percent of their accounting or taxable income, whichever is higher. In this regard, a constitutional petition has been filed by certain CISs through their trustees in the Sindh High Court (SHC), challenging the applicability of WWF to the CISs, which is pending adjudication. In August 2011, the Honorable Lahore High Court (LHC), in a Constitutional Petition relating to the amendments brought in the WWF Ordinance, 1971 through the Finance Act, 2006, and the Finance Act, 2008, has declared the said amendments as unlawful and unconstitutional and struck them down. In March 2013, a larger bench of the SHC has passed an order declaring that the amendments introduced in the WWF Ordinance through Finance Acts, 2006 and 2008 respectively do not suffer from any constitutional or legal infirmity. However, as mentioned above, the constitutional petition challenging the applicability of WWF on mutual funds is still pending adjudication and not yet decided. The Management Company has considered the implications of the above judgment of SHC and is of the view that the matter will eventually be settled in its favor and WWF will not be levied on the Fund. As per the legal counsel handling the case, the constitutional petition filed by the CIS to challenge the WWF contribution has not been affected by SHC judgment. Further, in May 2014, the High Court (PHC) held that the impugned levy of contribution introduced in the Ordinance through Finance Acts, 1996 and 2009 lacks the essential mandate to be introduced and passed through a Money Bill under the constitution and, hence, the amendments made through the Finance Acts are declared as 'Ultra Vires. As the matter relating to the levy of WWF is currently pending in the SHC, the Management Company, as a matter of prudence, has decided to retain the provision for WWF amounting to Rs.18.1 million (June 30, 2015: Rs.18.1 million) in these financial statements. Had the provision not been made, the net assets value per unit of the Fund would have been higher by Rs.2.42 per unit (June 30, 2015: Rs per unit). The Finance Act, 2015 has excluded Mutual Funds and Collective Investment Schemes from the definition of 'industrial establishment' subject to WWF under WWF Ordinance, Accordingly, no provision for WWF is made from July 01, 2015 onwards. However, provision made till June 30, 2015 has not been reversed as the above lawsuit is pending in the SHC As per the requirements of the Finance Act 2013, Federal Excise Duty (FED) at the rate of 16% (June 30, 2015: 16%) on the services of the Management Company has been applied effective June 13, The Management Company is of the view that since the remuneration is already subject to provincial sales tax, further levy of FED results in double taxation, which does not appear to be the spirit of the law. The matter has been collectively taken up by the Management Company jointly with other Asset Management Companies and CDC on behalf of schemes through a constitutional petition filed in the SHC in September The Fund, as a matter of abundant caution, has charged FED and sales tax on service thereon in its financial statements with effect from June 13, As at June 30, 2016, the Fund has held a provision for FED aggregating to Rs million (June 30, 2015: Rs.9.84 million).

36 36 Faysal Asset Management Faysal Money Market Fund NOTES TO THE FINANCIAL STATEMENTS The Sindh High Court in its decision dated July 16, 2016 maintained the previous order passed against other constitutional petition whereby levy of FED is declared to be Ultra Vires the Constitution. The management is however of the view that since the Federal governement still has the right to appeal against the order, the provision held for FED shall not be reversed. Further, as per the Finance Act, 2016, the management fees charged by the asset management company have been declared exempt from the levy of FED with effect from July 01, Accordingly, no provision for FED is made from July 01, 2016 onwards. 15. PAYABLE AGAINST REDEMPTION OF UNITS June 30, June 30, (Rupees) Payable to Faysal Bank Limited ,000,000 - Payable to others ,211, ,211, This represents payable against redemption of 1,859,177 units to Faysal Bank Limited (a related party) This includes an amount of Rs. 357 million payable to Faysal Saving Growth Fund, Rs 0.94 to Faysal Balance Growth Fund and Rs 80 milion to Faysal Islamic Saving Growth Fund account of conversion / switching of units on the request of invetors. The amount has been subsequently paid. 16. CONTINGENCIES AND COMMITMENTS There were no contingencies and commitments as at June 30, 2016 and June 30, 2015 except as disclosed in relevant notes to the financial statements. 17. AUDITORS' REMUNERATION June 30, June 30, (Rupees) Audit fee 231, ,000 Review and other certifications 189, ,000 Others 46,248 37, , ,099 Sales tax 23,312 21, , ,099

37 Faysal Asset Management Faysal Money Market Fund 37 NOTES TO THE FINANCIAL STATEMENTS 18. TAXATION - - The income of the fund is exempt from income tax under Clause (99) of Part 1 of the Second Schedule to the Income Tax Ordinance, 2001 (Clause 99) subject to the condition that not less than 90 percent of the accounting income for the year, as reduced by capital gains, whether realized or unrealized, is distributed amongst the unit holders. The Management Company has intends to distribute not less than 90 percent of its annual accounting income to avail the tax exemption. Accordingly, no provision for current and deferred tax has been made in these financial statements. 19. TRANSACTIONS WITH CONNECTED PERSONS AND RELATED PARTIES 19.1 Connected persons and related parties include Faysal Asset Management Limited being the Management Company, Central Depository Company of Pakistan Limited being the Trustee, other collective investment schemes managed by the Management Company, Faysal Asset Management Limited - Staff Provident Fund, Faysal Asset Management Limited - Staff Gratuity Fund, Faysal Bank Limited, Faysal Bank Limited - Staff Provident Fund, Faysal Bank Limited - Staff Gratuity Fund and other entities under common management and / or directorship and the directors and officers of the Management Company and the Trustee The transactions with connected persons are in the normal course of business at contracted rates The details of transactions carried out by the Fund with connected persons and related parties and balances with them at year end are as follows: Transactions during the year June 30, June 30, (Rupees) Faysal Asset Management Limited (Management Company) Remuneration of Management Company 18,089,643 34,381,237 Sales tax on management fee 2,532,550 5,157,185 Redemption of Nil units (2015: 3,653 units) - 396,989 Faysal Asset Management Limited - Staff Gratuity Fund Redemption of Nil units (2015: 4,060 units) - 422,088 Faysal Asset Management Limited - Staff Provident Fund Redemption of Nil units (2015: 9,280 units) - 1,010,486 Faysal Bank Limited (Group company / Associated Company) Issue of Nil units (2015: 1,979,414 units) - 200,000,000 Redemption of 2,850,177 units (2015: 405,490 units) 270,000,000 42,677,823 Return on PLS savings accounts 191, ,586 Cash dividend paid 18,487,565 51,750,438 Bank charges 12,202 4,462 Suraj Cotton Mill Limited Issue of 1,912,669 units (2015: 3,463,975 units) 202,800, ,000,000 Redemption of 5,376,643 units (2015: 405,490 units) 510,698,651 -

38 38 Faysal Asset Management Faysal Money Market Fund NOTES TO THE FINANCIAL STATEMENTS Connected Persons- Units holders having 10% or more units June 30, June 30, (Rupees) Fauji Oil Terminal & Distributor Co. Ltd Issue of 1,250,362 units (2015: Nil units) 127,417,999 - K&N'S Foods (Pvt) Ltd Issue of 1,069,658 units (2015: Nil units) 108,120,982 - Cash dividend paid 5,849,533 Directors and Key Management Personnel of the Management Company and their close relatives Issue of 16,889 units (2015: 9,011 units) 594, ,000 Bonus issue of Nil units (2015: 121 units) - 12,223 Reinvestment of dividend 190 units (2015: 1,186 units) 19, ,656 Redemption of 17,001 units (2015: Nil units) 594,208 - Central Depository Company of Pakistan Limited - (Trustee of the Fund) Remuneration of the Trustee 2,445,267 3,972,369 Sales tax on remuneration of the Trustee 342,417 - CDC charges 12,100 4,500 Outstanding balances Faysal Asset Management Limited (Management Company) Remuneration payable to the management Company 700,802 1,976,357 Sales tax on management fee payable 98, ,455 Faysal Bank Limited (Group company / Associated Company) Balance in PLS saving accounts 2,351,983 2,522,535 Units in issue 991,000 units (2015: 7,409,022 units) 100,190, ,751,773 Return receivable on PLS savings accounts 20,786 14,294 Payable against redemption of units 188,000,000 - Faysal Saving Growth Fund Receivable against sale of units 154,810,702 - Payable against redemption of units 357,067,042 - Faysal Balance Growth Fund Payable against redemption of units 937,602 - Faysal Islamic Saving Growth Fund Payable against redemption of units 80,000,000 -

39 Faysal Asset Management Faysal Money Market Fund 39 NOTES TO THE FINANCIAL STATEMENTS Connected Persons- Units holders having 10% or more units June 30, June 30, (Rupees) Fauji Oil Terminal & Distributor Company Limited Units in issue 1,250,362 units (2015: Nil units) 126,411,645 - K&N'S Foods (Pvt) Limited Units in issue 1,069,658 units (2015: Nil units) 108,142,375 - *Sunrays Textile Mills Limited Units in issue Nil (2015: 2,117,805) - 213,982,975 *Suraj Cotton Mills Limited Units in issue Nil (2015: 3,463,975) - 350,000,000 Directors and Key Management Personnel of the Management Company and their close relatives Units in issue 3,937 units (2015: 20,938 units) 398,031 2,115,991 Central Depository Company of Pakistan Limited - (Trustee of the Fund) Remuneration payable to the Trustee 182, ,135 Sales tax on Trustee fee 25,554 - Security deposit 100, , FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES The Fund s objective in managing risk is the creation and protection of unit holders value. Risk is inherent in the Fund s activities, but it is managed through monitoring and controlling activities which are primarily set up to be performed based on limits established by the Management Company, Fund's constitutive documents and the regulations and directives of the SECP. These limits reflect the business strategy and market environment of the Fund as well as the level of the risk that Fund is willing to accept. The Board of Directors of the Management Company supervises the overall risk management approach within the Fund (also refer Annexure I to these financial statements which describes the risk management structure of the Fund). The Fund is exposed to market risk, liquidity risk and credit risk arising from the financial instruments it holds.

40 40 Faysal Asset Management Faysal Money Market Fund NOTES TO THE FINANCIAL STATEMENTS 20.1 Market risk Market risk is the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in market variables such as equity prices, interest rates and foreign exchange rates. (i) Interest rate risk Interest/profit rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market profit rates. As of June 30, 2016, the Fund's exposure to the risk of changes in market profit rates relates primarily to bank balances and clean placements. The bank balances and clean placements are subject to profit rates as declared by the respective banks/institutions on periodic basis. The government securities are subject to fixed interest rates and are valued by reference to the quotation obtained from Reuters. As at June 30, 2016, approximately 88.92% (June 30, 2015: 99.87%) of the Fund's financial assets are subject to interest rates. Management of the Fund estimates that an increase of 100 basis points in the floating profit rate, with all other factors remaining constant, would increase the Fund's income and increase the net assets of the Fund by Rs million (June 30, 2015: Rs million) and a decrease of 100 basis points would result in a decrease the Fund's income and decrease the net assets of the Fund by the same amount. However, in practice, the actual results may differ from the sensitivity analysis. Management of the Fund estimates that an increase of 100 basis points in the fixed interest rate, with all other factors remaining constant, would decrease the Fund's income and decrease in the net assets of the Fund by Rs. 2 million (2015: Rs million) and a decrease of 100 basis points would result in a increase the Fund's income and increase the net assets of the Fund by the same amount. However, in practice, the actual results may differ from the sensitivity analysis. (ii) Foreign currency risk Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Fund does not have any financial instruments in foreign currencies and hence is not exposed to such risk. (iii) Equity price risk Equity price risk is the risk of volatility in share prices resulting from their dependence on market sentiments, speculative activities, supply and demand for shares and liquidity in the market. The equity price risk exposure arises from the Fund's investment in equity securities. The Fund does not have any equity instrument and it is not exposed to such risk.

41 Faysal Asset Management Faysal Money Market Fund 41 NOTES TO THE FINANCIAL STATEMENTS 20.2 Liquidity risk Liquidity risk is defined as the risk that the Fund will encounter difficulty in meeting obligations associated with financial liabilities. Liquidity risk arises because of the possibility that the Fund could be required to pay its liabilities earlier than expected. The Fund is exposed to cash redemptions of its redeemable units on a regular basis. Units are redeemable at the unit holders option based on the Fund s net asset value per unit at the time of redemption calculated in accordance with the Fund s constitutive documents. The table below summarises the maturity profile of the Fund's financial liabilities based on contractual undiscounted payments. June 30,2016 Upto one month More than one month and upto More than three months and upto one year More than one year Total Financial liabilities (Rupees) Payable to the Management Company 700, ,802 Remuneration payable to the Trustee 208, ,074 Accrued and other liabilities 1,205, ,205,202 Payable against redemption of units 683,211, ,211, ,325, ,325,831 June 30,2015 Upto one month More than one month and upto three months More than three months and upto one year More than one year Total (Rupees) Financial liabilities Payable to the Management Company 1,976, ,976,357 Remuneration payable to the Trustee 246, ,135 Accrued and other liabilities 1,138, , ,458,816 3,361, , ,681, Credit risk Credit risk is the risk that the counterparty to a financial instrument will cause a financial loss for the Fund by failing to discharge its obligation. The Fund s policy is to enter into financial contracts with reputable counter parties in accordance with the internal guidelines, offering document and regulatory requirements. The table below analyses the Fund's maximum exposure to credit risk. The maximum exposure is shown gross, before the effect of mitigation through the use of collateral agreements at reporting date:

42 42 Faysal Asset Management Faysal Money Market Fund NOTES TO THE FINANCIAL STATEMENTS June 30, June 30, (Rupees) Bank balances and term deposit receipts 1,111,521, ,853,087 Return receivable on bank balances and term deposits receipts 8,730,010 4,394,820 Clean placements 200,000, ,738,630 Certificate of Investment - 280,221,610 Receivable against sale of units 154,810,702 - Markup receivable on Clean Placements 1,264,227 1,476,326,215 1,311,208,147 All deposits with the banks are highly rated and risk of default is considered minimal. Concentration of credit risk exists when changes in economic or industry factors affect the group of counterparties whose aggregate credit exposure is significant in relation to the Fund s total credit exposure. The Fund s portfolio of financial assets is broadly diversified and transactions are entered into with diverse credit worthy counterparties thereby mitigating any significant concentration of credit risk. The table below analyses the credit quality of the Fund's exposure: Rating category June 30, June 30, (%) AA+, AA, AA Unrated The table below analyses the Fund's concentration of credit risk by industrial distribution: June 30, June 30, % of assets exposed to credit risk Commercial banks Financial Institutions Others

43 Faysal Asset Management Faysal Money Market Fund 43 NOTES TO THE FINANCIAL STATEMENTS 20.4 Unit Holders' Fund The capital of the Fund is represented by the net assets attributable to holders of redeemable units. The capital structure depends on the issuance and redemption of units. The Fund s objective when managing unit holders fund is to safeguard the Fund s ability to continue as a going concern in order to seek maximum preservation of unit holders fund and an optimum rate of return by investing in avenues having good credit rating and liquidity and to maintain a strong capital base to support the development of the investment activities of the Fund. The Fund has no restrictions or specific capital requirements on the subscription and redemption of units. In accordance with the risk management policies, the Fund endeavours to invest the subscriptions received in appropriate investments while maintaining sufficient liquidity to meet redemption requests, such liquidity being augmented by disposal of investments where necessary. Under the NBFC Regulations 2008, the minimum size of an open end scheme shall be one hundred million rupees at all the times during the life of the scheme. 21. FAIR VALUE OF FINANCIAL INSTRUMENTS IFRS 13 - Fair Value Measurement establishes a single source of guidance under IFRS for all fair value measurements and disclosures about fair value measurement where such measurements are required as permitted by other IFRSs. It defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e. an exit price). Adoption of IFRS 13 has not affected the financial statements except for the disclosure. Financial assets which are tradable in an open market are revalued at the market prices prevailing on the reporting date. The estimated fair value of all other financial assets and financial liabilities is considered not significantly different from book value. The following table shows financial instruments recognized at fair value, analyzed between those whose fair value is based on: Level 1: Level 2: Level 3: quoted prices in active markets for identical assets. those involving inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices); and those with inputs for the asset or liability that are not based on observable market data (unobservable inputs). As at June 30, 2016, the following financial instruments are categorised under the levels as follows:

44 44 Faysal Asset Management Faysal Money Market Fund NOTES TO THE FINANCIAL STATEMENTS Deposits and other receivables June 30, 2016 Carrying amount Fair value Cash and cash equivalents Total Investments (Rupees) Level 1 Level 2 Level 3 Total (Rupees) Financial assets not measured at fair value Clean placement 201,264, ,264, Bank balances and term deposit receipt - - 1,111,521,276 1,111,521, Deposits and other receivables - 165,188, ,188, ,264, ,188,605 1,111,521,276 1,477,974, Deposits and other receivables June 30, 2015 Carrying amount Fair value Cash and cash equivalents Total Investments Level 1 Level 2 Level 3 Total (Rupees) (Rupees) Financial assets measured at fair value At fair value through profit or loss - held-for-trading Government Securities - Market treasury bills 2,056,393, ,056,393,600-2,056,393,600-2,056,393,600 Financial assets not measured at fair value Clean placement 101,738, ,738, Certificates of investment 280,221, ,221, Bank balances and term deposit receipts ,853, ,853, Deposits and other receivables - 4,581,834-4,581, ,960,240 4,581, ,853,087 3,367,788,761-2,056,393,600-2,056,393,600

45 Faysal Asset Management Faysal Money Market Fund 45 NOTES TO THE FINANCIAL STATEMENTS 22. SUPPLEMENTARY NON FINANCIAL INFORMATION The information regarding pattern of unit holdings', top brokers, members of the Investment Committee, performance table, fund manager, meetings of the Board of Directors of the Management Company and rating of the Fund and the Management Company has been disclosed in Annexure I to the financial statements. 23. GENERAL Figures are rounded off to the nearest Rupee. 24. DATE OF AUTHORISATION FOR ISSUE These financial statement were authorised for issue on September 26, 2016 by the Board of Directors of the Management Company. For Faysal Asset Management Limited (Management Company) Chief Executive Officer Director Director

46 46 Faysal Asset Management Faysal Money Market Fund SUPPLEMENTARY NON FINANCIAL INFORMATION DISCLOSURE REQUIREMENTS UNDER CLAUSE 6 - NOTES TO THE ACCOUNTS SUB CLAUSE (D), (F), (G), (H), (I) AND (J) OF THE 5TH SCHEDULE TO THE NON BANKING FINANCE COMPANIES AND NOTIFIED ENTITIES REGULATIONS, 2008 Annexure I (i) PATTERN OF UNIT HOLDING Category No. of investors Units held % A ssociated company 1 991, I nsurance company R etirement Funds 9 452, I ndividuals 246 1,020, Banks and DFIs NBFCs O ther 14 5,027, ,491, (ii) TOP TEN BROKERS BY PERCENTAGE OF COMMISSION PAID June 30, 2016 Name % Invest Capital Market Limited 37.90% BMA CAPITAL 11.53% Invest & Finance Sec 10.26% Next Capital 8.70% Icon Securities 7.99% Arif Habib Securities Limited 7.43% Invest Capital Securities 7.13% Maginta Capital 3.99% C & M Management Ltd. 2.54% Global Securties Pakistan Limited 2.53% June 30, 2015 % Invest Capital Market Limited 40.70% Invest & Finanace Limited 19.49% Global Securities Pakistan Limited 9.93% Icon Securities (Pvt) Limited 9.04% C & M Management Limited 6.50% Arif Habib Securities Limited 4.41% BMA Capital Limited 2.82% Megenta Capital (Pvt.) Limited 1.90% Next Capital Limited 1.81% Invest Capital Securities (Pvt.) Limited 1.41% (iii) THE MEMBERS OF THE INVESTMENT COMMITTEE Following are the members of the Investment Committee of the Fund: Name Qualification Experience Mr. Enam Ullah Khan B. Eco, FSA, Accreditations Over 24 years Mr. Najm Ul Hassan MBA, ACMA, CFA I Over 21 years Mr. Vasseh Ahmed Master in Science Over 8 years Mr. Ayub Khuhro BSC Economics, CFA I Over 8 years Syed Shahid Iqbal B. COM Over 26 years Mr. Hassan Bin Nasir MBA Over 8 years Mr. Sarwar Khan (Non-Voting) ACCA, CFA II Over 8 years

47 Faysal Asset Management Faysal Money Market Fund 47 SUPPLEMENTARY NON FINANCIAL INFORMATION DISCLOSURE REQUIREMENTS UNDER CLAUSE 6 - NOTES TO THE ACCOUNTS SUB CLAUSE (D), (F), (G), (H), (I) AND (J) OF THE 5TH SCHEDULE TO THE NON BANKING FINANCE COMPANIES AND NOTIFIED ENTITIES REGULATIONS, 2008 (iv) PARTICULARS OF FUND MANAGERS Name Syed Shahid Iqbal Qualification B. COM Other Collective Investment Schemes Managed Faysal Savings Growth Fund Faysal Financial Sector Opportunity Fund (v) PERFORMANCE TABLE June 30, 2016 June 30, 2015 June 30, (Rupees) N et assets 757,330,293 3,329,624,569 5,191,664,591 N et asset value per unit O ffer price R epurchase price per unit H ighest offer price per unit H ighest repurchase price per unit L owest offer price L owest repurchase price per unit Total return: - capital growth - income distribution 5.67% 0.03% 5.64% 8.64% 0.21% 8.43% 8.35% 0.30% 8.05% Average annual return: (Launch date: Decemeber 13, 2010) - one year - two years - three years 5.67% 7.16% 7.55% 8.64% 8.50% 8.60% 8.35% 8.59% 9.26% Distribution per unit: - Interim distribution (% per unit) 5.70% 8.50% 8.05% - Final distribution (% per unit) % 8.50% 8.05% The Fund's past performance is not necessarily indicative of future performance. Therefore, the unit prices and investment returns may go down, as well as up. (vi) Expense ratio from the November 25, 2015 to June 30, 2016 Faysal Money Market Fund (FMMF) has total expense ratio (TER) of 1.34%, the TER inlcudes 0.35% representing government levy and SECP fee.

48 48 Faysal Asset Management Faysal Money Market Fund SUPPLEMENTARY NON FINANCIAL INFORMATION DISCLOSURE REQUIREMENTS UNDER CLAUSE 6 - NOTES TO THE ACCOUNTS SUB CLAUSE (D), (F), (G), (H), (I) AND (J) OF THE 5TH SCHEDULE TO THE NON BANKING FINANCE COMPANIES AND NOTIFIED ENTITIES REGULATIONS, 2008 Annexure II (vi) MEETINGS OF THE BOARD OF DIRECTORS Following is the analysis of the attendance in the meetings of the Board of Directors of the Management Company during the year: Name of Directors Meetings held on Meetings Sep 23 Oct 06 Oct 28 Feb 29 March 18 March 31 April 22 June 27 Attended Mr. Nauman Ansari, Chairman Mr. Osman Khan, Director Mr. Zahid Ahmed, Director 4 N/A N/A N/A Syed Ibad ur Rahman Chishti, Director Mr. Razi ur Rahman, Director Mr. Enamullah Khan, Chief Executive Officer (vii) MEETINGS OF THE AUDIT COMMITTEE Following is the analysis of the attendance in the meetings of the Audit Committee of the Management Company during the year: Name of Member Meetings held on Meetings Oct 06 Oct-27 Oct-28 Feb-26 Apr-22 Attended Mr. Razi ur Rehman, Chairman Mr. Osman Khan, Director Syed Ibad ur Rahman Chishti, Director (viii) MEETINGS OF THE BOARD HR COMMITTEE Following is the analysis of the attendance in the meetings of the Board HR Committee of the Management Company during the year: Name of Directors Meetings held on Meetings Oct 13 Oct 28 Dec 30 March 04 Attended Mr. Osman Khan, Chairman Mr. Razi ur Rahman Khan, Director Syed Ibad ur Rahman Chishti, Director Mr. Enamullah Khan, Chief Executive Officer (ix) RATING OF THE FUND AND THE MANAGEMENT COMPANY The PACRA Credit Rating Agency Limited has assigned a "AA+(f)" fund rating to Faysal Money Market Fund as of December 31, 2015 and the JCR-VIS Credit Rating Company Limited (JCR-VIS) has awarded an "AM3++" asset manager rating to the Management Company as of May 04, 2016.

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