FUND S INFORMATION CONTENTS FUND'S INFORMATION MISSION STATEMENT REPORT OF THE DIRECTORS OF THE MANAGEMENT COMPANY

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1 CONTENTS FUND'S INFORMATION MISSION STATEMENT REPORT OF THE DIRECTORS OF THE MANAGEMENT COMPANY INDEPENDENT AUDITORS' REPORT TO THE UNIT HOLDERS ON REVIEW OF CONDENSED INTERIM FINANCIAL INFORMATION REPORT OF THE TRUSTEE TO THE UNIT HOLDERS CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES CONDENSED INTERIM INCOME STATEMENT CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME CONDENSED INTERIM DISTRIBUTION STATEMENT CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDER'S FUND CONDENSED INTERIM CASH FLOW STATEMENT NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FUND S INFORMATION Management Company BMA Asset Management Company Limited 801 Unitower Chundrigar Road, Karachi Board of s of the Management Company Mr. Muhammad Iqbal Chairman Mr. Zouhair Abdul Khaliq Mr. Salim Khan Mr. Muddassar Malik Mr. Khaldoon Bin Latif Audit Committee of the Management Company Mr. Zouhair Abdul Khaliq Chairman Mr. Muhammad Iqbal Member Mr. Muddassar Malik Member Human Resource and Remuneration Committee Mr. Salim Khan Chairman Mr. Muhammad Iqbal Member Mr. Muddassar Malik Member Management Team of the Management Company Mr. Farrukh Hussain Chief Investment Officer Mr. Faisal Ali Khan CFO & Company Secretary Trustee MCB Financial Services Limited Trustee Office 4th Floor, Pardasi House, M.T Khan Road, Karachi Bankers Summit Bank Limited Bank Islami Pakistan Limited JS Bank Limited Bank AI-Habib Limited Faysal Bank Limited MCB Bank Limited Bank Alfalah Limited Silk Bank Limited Habib Bank Limited Askari Bank Limited Zarai Taraqiati Bank Limited Distributors BMA Capital Management Limited Pyramid Financial Consultants (Pvt) Limited Topline Securities Limited Auditors A.F. Ferguson & Co., Chartered Accountants State Life Building No. 1-C, 1.1. Chundrigar Road Karachi Legal Adviser KMS Law Associates 207, Beaumont Plaza behind PIDC House, Karachi Registrar Technology Trade (Pvt.) Limited Dagia House, 241 C, Block 2, PECHS Karachi Fund Stability Rating A+(f) Management Quality Rating AM3 Meezan Bank Limited Finca Micro Finance Bank Limited U Micro Finance Bank Limited Tameer Micro Finance Bank Limited Dubai Islamic Bank Pakistan Limited Icon Securities (Pvt) Ltd. Rabia Fida 1

2 REPORT OF THE DIRECTORS OF THE MANAGEMENT COMPANY The Board of s of BMA Asset Management Company Limited, the Management Comp any of BMA Chundrigar Road Savings Fund (BCSF), is pleased to present it s report and financial statements of the Fund for the period ended March 31, PROFILE The launch announcement of the BMA Chundrigar Road Savings Fund ("BCSF") was made on 14 August, 2007, Pakistan's 60th year of independence and BCSF was formally launched on 23rd August of the same year. The BCSF seeks to provide its investors with an attractive rate of return by investing in all fixed income and money market instruments of low risk and medium term duration. The fund's aim is to maintain a rupee-weighted average maturity for the investment portfolio of not more than 5 years. The benchmark for our return is one year KIBOR. MISSION STATEMENT The BMA Chundrigar Road Savings Fund seeks to provide its investors attractive risk adjusted income through investments in fixed income instruments having moderate level of risk profile. The benchmark of the Fund is an average of one year KIBOR rate prevailing within the particular time period. The Fund will seek to maint ain a rupeeweighted average maturity of investment port folio of not more than 5 years. VISION STATEMENT BMA Asset Management seeks to establish itself as a leader within the asset management industry of Pakistan by following the principles of prudent investment practice and keeping our fiduciary responsibility towards our investors as the core belief to our investment philosophy. FUND'S FINANCIAL PERFORMANCE During the nine months ended March 31, 2017, the Fund earned Rs. 22 million from income on investments, bank balances and term deposits. The fund also booked realized and unrealized loss of 1.12 million. Thus the total income earned came to Rs million. Total expenses of BCSF for the period came to Rs million. This included remunerations to the trustee of the fund of Rs. 0.52, fee to the SECP of Rs. 0.21, and remuneration to the management company of Rs million. In addition, the fund booked an element of loss and capital losses from the issue and redemption of units which totaled Rs.8.85 million. During the 3QFY17 fund also reverse liability of Federal W orkers' Welfare Fund amounting Rs 0.14 mn and record new liability of Sindh Workers Welfare Fund amounting Rs mn as per Industry practice. Resultantly, the net income for the period was Rs million. INVESTMENT STRATEGY During the period under review, the fund aimed to maintain major exposure in high yield deposits and medium to longer tenor sovereign bonds to capitalize declining interest rate scenario effectively while selectively deploying assets in high yielding instruments. This enabled the fund to generate a superior rate of return while ret aining both liquidity and its ability to respond quickly in any uncertain macroeconomic environment. During the 3Q of FY17, major exposure was maint ained in high yield deposit s to avoid volatility exist in secondary market. As of 31st March, the weighted average maturity of BCSF portfolio was 181 days. This was in order to optimize benefit from the prevailing adjustments in yield curve. As of March 31st, 2017, the net assets of the fund were Rs million, 49.31% of these assets were held in Bank Deposits, 29.35% in TDR, 14.10% in Commercial paper, 5.14% in PIBs and 2.10% in others instruments. In line with this asset allocation, the credit quality of the fund remained high with 74.40% allocated to A, 5.14% in AAA, 3.7% in AA+, 14.67% in A- and 2.1% in unrated instruments. RETURN DURING THE PERIOD FOR INVESTORS During 9MFY17, the Fund generated an annualized return of 5.41%% against the benchmark of 6.41%. The forgoing performance is net of all expenses. RECENT DEVELOPMENTS Due to possible reversal in yield curve we have rebalanced BCSF portfolio to avoid interest rate risk and avail opportunity of higher deposit rates from leading financial institution, as a result the fund managed to provide handsome return in 9MFY17 and maintain its position in the top quartile among aggressive fixed income fund category. We believe that monetary easing cycle is almost over now and no immediate reversal in discount rate expected by the end of FY17. We have reduced exposure in PIB and gradually increasing exposure in floating rate instruments. Because of this, the fund's ability to meet redemptions and remain flexible in an uncert ain macroeconomic environment remained intact. MACROECONOMIC OUTLOOK The inflation maintained its reversal during 3QFY17, as the average CPI for 3QFY17 stood at 4.27% YoY against 3.73% YoY during the same period last year. Housing, Water, Electricity, Gas & Fuels head which constitute 29.4% of the index went up by 3.9% during 9MFY17. Other major contributors to 9MFY17 inflation were 12.5% increase in health cost (mainly on account of price hike of different medicines), and 3.7% increase in transport head. We expect inflation to remain in manageable range of 4.1%-4.4% during FY17, however, continued recovery in commodity prices and expected rupee devaluation can put some inflationary pressure during FY

3 The State Bank of Pakistan (SBP) kept the policy rate unchanged for the 5th consecutive time at 5.75% in it s latest (Mar'17) Monetary Policy for the next two months. According to latest MPS released by SBP, real economic activity is gathering pace on the back of better agricultural output, growth in key LSM sectors, and a healthy uptick in the credit to private sector. However, drop in exports along with continuous rise in imports has widened the current account deficit (CAD). Therefore, maintaining its cautious stance the SBP has kept the policy rate unchanged, which is in line with the market expectations. We believe manageable inflation outlook in near future has waved off any chances of hike in policy rate till Sept '17. Current account deficit was recorded at USD 2.59bn during 3QFY17, depicting deterioration of 13% QoQ despite of coalition support fund (CSF) inflow of USD 550mn. Widening of CAD can mainly be attributed to 11% QoQ surge in imports. Resultantly 9MFY17 CAD has mounted to USD 6.13bn as against the deficit of USD 2.35bn during the same period last year. Going forward, hike in import bill due to increase in oil prices and declining exports will prompt further weakness in CAD, though contained somewhat by seasonal recovery in remittance during 4QFY17. By the end of 3QFY17, country's forex reserves have slipped to USD 21.55bn, after attaining peak levels of USD 24bn in Oct'16. With total external debt payments of ~5.7bn due in FY18 along with widening CAD might put some pressure on country's reserves and exchange rate. On the fl ipside, the government recently revised its fiscal deficit target up to 4.1% of GDP from earlier 3.8% of GDP mainly due to shortfall in tax collection so far (PKR168bn in 9MFY17). Tax shortfall and other fiscal slippages can widen the deficit beyond the revised target. STRATEGY In light of the above macroeconomic scenario, BCSF's strategy is likely to focus on the following; Build exposure in high quality, shorter to medium term instrument s, keeping in mind an appropriate risk/reward ratio. To transform portfolio allocation largely towards floating rate instrument s to avoid interest rate risk. Decrease duration with the intention of trading in fixed and floating rate instruments to take advantage of rebound in policy rate. Acknowledgement The Board is thankful to its valued investors, the Securities and Exchange Commission of Pakistan, the Trustees of the Fund, MCB Financial Services Limited and the Registrar, Technology Trade (Pvt) Limited. The s of the Management Company also acknowledge the efforts put in by the team of the Management Comp any for the meticulous management of the Fund. For and on behalf of the Board Karachi April 21, 2017 Khaldoon-Bin-Latif 4 5

4 CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES AS AT MARCH 31, 2017 Khaldoon Bin Latif Salim Khan 6

5 CONDENSED INTERIM INCOME STATEMENT (UN-AUDITED) FOR THE NINE MONTHS AND QUARTER ENDED MARCH 31, 2017 CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED) FOR THE NINE MONTHS AND QUARTER ENDED MARCH 31,

6 CONDENSED INTERIM DISTRIBUTION STATEMENT (UN-AUDITED) FOR THE NINE MONTHS AND QUARTER ENDED MARCH 31, 2017 CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED) FOR THE NINE MONTHS AND QUARTER ENDED MARCH 31,

7 CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUND (UN-AUDITED) FOR THE NINE MONTHS AND QUARTER ENDED MARCH 31, 2017 NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE NINE MONTHS AND QUARTER ENDED MARCH 31, LEGAL STATUS AND NATURE OF BUSINESS 1.1 BMA Chundrigar Road Savings Fund (the Fund) was established in Pakistan under a Trust Deed executed between BMA Asset Management Company Limited, as the Management Company and MCB Financial Services Limited, as the Trustee. The Trust Deed was executed and approved by the Securities and Exchange Commission of Pakistan (SECP) in accordance with the Non-Banking Finance Comp anies (Establishment and Regulation) Rules, 2003 (NBFC Rules). The Management Company of the Fund is licensed to carry out Asset Management Services as a Non Banking Finance Company under the NBFC Rules through a certificate of registration issued by the SECP. The registered office of the Management Company is situated at 801 Unitower, I. I. Chundrigar Road, Karachi. The Management Company is a member of the Mutual Funds Association of Pakistan (MUFAP). The Fund is an open-ended money market mutual fund listed on the Karachi Stock Exchange (now Pakistan Stock Exchange). Units of the Fund are offered for public subscription on a continuous basis. The units of the Fund are transferable and can be redeemed by surrendering these to the Fund. The Fund is categorised as an 'Aggressive Fixed Income Scheme' as per the criteria laid down by the SECP for categorisation of Collective Investment Schemes (CISs). The Fund seeks to provide attractive income to investors having concern for preservation of capit al by investing in all fixed income and money market instrument s of low risk and short duration to generate attractive rates of returns. Pakistan Credit Rating Agency Limited has assigned a rating of A+(f) and AM3 to the Fund and the Management Company respectively. Title to the assets of the Fund is held in the name of MCB Financial Services Limited as Trustee of the Fund. 2 BASIS OF PREPARATION 2.1 Statement of compliance This condensed interim financial information has been prepared in accordance with the approved accounting standards as applicable in Pakistan for interim financial reporting. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board as are notified under the Comp anies Ordinance, 1984, the requirements of the Trust Deed, the NBFC Rules, the Non-Banking Finance Companies and Notified Entities Regulations, 2008 (the NBFC Regulations) and the 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 directives issued by the SECP prevail. This condensed interim financial information does not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the annual published financial statements of the Fund for the year ended June 30, This condensed interim financial information is unaudited but has been subjected to a limited scope review by the auditors. In compliance with Schedule V of the Non-Banking Finance Companies and Notified Entities Regulations, 2008, the directors of the Management Comp any hereby declare that this condensed interim financial information gives a true and fair view of the state of the Fund s affairs as at March 31,

8 3 SIGNIFICANT ACCOUNTING AND RISK MANAGEMENT POLICIES, ESTIMATES, JUDGMENTS AND CHANGES THEREIN 3.1 The accounting policies applied in the preparation of this condensed interim financial information are the same as those applied in the preparation of the annual published audited financial statements of the Fund for the year ended June 30, The preparation of this condensed interim financial information in conformity with the approved accounting standards requires the management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, income and expenses. It also requires the management to exercise judgment in application of its accounting policies. The estimates, judgments and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. These estimates and assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision af fects only that period, or in the period of revision and future periods if the revision affects both current and future periods. 3.3 The significant estimates, judgments and assumptions made by management in applying the accounting policies and the key sources of estimation uncertainty were the same as those that applied to the financial statements as at and for the year ended June 30, The financial risk management objectives and policies are consistent with those disclosed in the annual published audited financial statements of the Fund for the year ended June 30, Standards, interpretations and amendments to published approved accounting standards that are effective in the current period There are certain amended standards and interpretations that are mandatory for the accounting periods beginning on or after July 1, 2016 but are considered not to be relevant or will not have any significant effect on the Fund's operations and are, therefore, not detailed in this condensed interim financial information. 3.6 Standards, interpretations and amendments to published approved accounting standards that are not yet effective There are certain amended standards and interpretations that are mandatory for the accounting periods beginning on or after July 1, 2017 but are considered not to be relevant or will not have any significant effect on the Fund's operations and are, therefore, not detailed in this condensed interim financial information. 4.1 Profit rates on these savings accounts range between 3.75% to 7.50% per annum (June 30, 2016: 3.75% to 6.65% per annum)

9 5.5 Commercial Paper This Commercial paper issued by Pak Electron Limited has been purchased during the period carrying yield of 7.89% per annum maturing on October 09, Term deposit Profit rate on the term deposit accounts are % having maturities on September 26, 2017 and September 27, 2017 respectively. In view of the above, the Fund has discontinued making further provision in respect of FED on remuneration of the Management Company with effect from 1 July However, as a matter of abundant caution the provision for FED made for the period from 13 June 2013 till 30 June 2016 amounting to Rs million (30 June 2016: Rs million) is being retained in the books of the Fund as the matter is pending before the Supreme Court of Pakistan. Had the said provision for FED not been recorded in the condensed interim financial information of the Fund, the net asset value of the Fund as at 31 March 2017 would have been higher by Re 0.15 per unit. 7.1 The Management Company is entitled to remuneration for services rendered to the Fund under Regulation 61 of the Non-Banking Finance Comp anies and Notified Entities Regulations, 2008, of an amount not exceeding 3 percent of the average daily net asset s of the Fund during the first five years of the Fund's existence and thereafter of an amount equal to 2 percent of such asset s of the Fund. The rate used by the Management Company (and the Fund) is 1.5 % (2015: 1.5%) per annum of the average daily net assets of the Fund as disclosed in the offering document. 7.2 Sindh sales tax at the rate of 13% (2016: 14%) is p ayable on the remuneration of the Management Company. 7.3 The Finance Act, 2013 enlarged the scope of Federal Excise Duty (FED) on financial services to include Asset Management Companies (AMCs) with effect from 13 June As the asset management services rendered by the Management Company of the Fund were already subject to provincial sales tax on services levied by the Sindh Revenue Board, which is being charged to the Fund as explained in note 7.2 above, the Management Company was of the view that further levy of FED was not justified. On 4 September 2013, a Constitutional Petition was filed in the Honourable Sindh High Court (SHC) jointly by various asset management companies, together with their representative Collective Investment Schemes through their trustees, challenging the levy of FED. During the half year ended 31 December 2016, the SHC passed an order whereby all notices, proceedings taken or pending, orders made, duty recovered or actions t aken under the Federal Excise Act, 2005 in respect of the rendering or providing of services (to the extent as challenged in any relevant petition) were set aside. In response to this, the Deputy Commissioner Inland Revenue has filed a Civil Petition for leave to appeal in the Supreme Court of Pakistan which is pending adjudication. With effect from 1 July 2016, FED on services provided or rendered by non-banking financial institutions dealing in services which are subject to provincial sales tax has been withdrawn by the Finance Act, The Finance Act, 2008 had introduced an amendment to the W orkers' Welfare Fund Ordinance, 1971 (WWF Ordinance) as a result of which it was construed that all Collective Investment Schemes (CISs) / mutual funds whose income exceeded Rs 0.5 million in a t ax year were 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 was higher. In light of this, the Mutual Funds Association of Pakistan (MUFAP) filed a constitutional petition in the Honourable Sindh High Court (SHC) challenging the applicability of WWF on CISs which is pending adjudication. Similar cases were disposed of by the Peshawar and the Lahore High Court s in which these amendment s were declared unlawful and unconstitutional. However, these decisions were challenged in the Supreme Court of Pakistan. Subsequently, the Finance Act, 2015 introduced an amendment under which CISs / mutual funds have been excluded from the definition of industrial establishment subject to WWF under the WWF Ordinance. Consequently, mutual funds are not subject to this levy after the introduction of this amendment which is applicable from tax year Accordingly, no further provision in respect of WWF was made with effect from July 1, On November 10, 2016 the Supreme Court of Pakist an (SCP) has passed a judgment declaring the amendments made in the Finance Acts 2006 and 2008 pertaining to WWF as illegal citing that WWF was not in the nature of tax and could, therefore, not have been introduced through money bills. Accordingly, the aforesaid amendments have been struck down by the SCP. The Federal Board of Revenue has filed a petition in the SCP against the said judgment, which is pending for hearing. While the petitions filed by the CISs on the matter are still pending before the SHC, the Mutual Funds Association of Pakistan (MUFAP) (collectively on behalf of the asset management companies and their CISs) has taken legal and tax opinions on the impact of the SCP judgement on the CISs petition before the SHC. Both legal and t ax advisors consulted were of the view that the judgment has removed the very basis on which the demands were raised against the CISs. Therefore, there was no longer any liability against the CISs under the WWF Ordinance and that all cases pending in the SHC or lower appellate forums will now be disposed of in light of the earlier judgement of the SCP. Furthermore, as a consequence of the 18th amendment to the Constitution of Pakistan, in May 2015 the Sindh Workers Welfare Fund Act, 2014 (SWWF Act) had been passed by the government of Sindh as a 16

10 result of which every industrial establishment located in the Province of Sindh, the total income of which in any accounting year is not less than Rs 0.50 million, is requ ired to pay Sindh Workers Welfare Fund (SWWF) in respect of that year a sum equal to two percent of such income. The matter was taken up by the MUFAP with the Sindh Revenue Board (SRB) collectively on behalf of various asset management companies (including the Management Company of the Fund) whereby it was contested that mutual funds should be excluded from the ambit of the SWWF Act as these were not industrial establishments but were pass through investment vehicles and did not employ workers. The SRB held that mutual funds were included in the definition of financial institutions as per the Financial Institution (Recovery of Finances) Ordinance, 2001 and were, hence, required to register and pay SWWF under the SWWF Act. Thereafter, MUFAP has taken up the matter with the Sindh Finance Ministry to have mutual funds excluded from the applicability of SWWF. In view of the above developments regarding the applicability of Federal and SWWF on Mutual Funds and considering the legal opinion obtained on these matters, MUFAP has recommended the following to all its members on January 12, 2017: - based on the legal opinion, the entire provision against WWF held by the CISs till 30 June 2015, to be reversed on 12 January 2017; and - the provision in respect of SWWF should be made with ef fect from the date of enactment of the SWWF Act, 2014 (i.e. starting from May 21, 2015) on January 12, Accordingly, the provision for SWWF is being made by the Funds on a daily basis going forward. The above decisions were communicated to the SECP and the Pakistan Stock Exchange Limited on 12 January 2017 and the SECP vide its letter dated 1 February 2017 has advised MUFAP that the adjustments relating to the above should be prospective and supported by adequate disclosures in the financial statements of the CISs/ mutual funds. Accordingly, the Fund has recorded these adjustments in its books on 12 January TOTAL EXPENSE RATIO In accordance with regulation 60 (5) of the amended NBFC Regulations 2008 the Total Expense Ratio (excluding government levies) of a aggressive fixed income scheme is to be capped at 2% of the daily average net assets of the fund during the period. The Total Expense Ratio of BMA Chundrigar Road Savings Fund for the period ended March 31, 2017 is 2.36% which includes 0.36% representing government levy and SECP fee. The expenses of the fund exceeds the 2% cap by Rs 305,003 which has been recorded as a recievable from the management company. 14 TRANSACTIONS WITH RELATED PARTIES / CONNECTED PERSONS 14.1 Related parties / Connected persons comprise of BMA Asset Management Company Limited (the Management Company), BMA Empress Cash Fund, BMA Capital Management Limited (the holding company of the Management Comp any), BMA Financial Services Limited, BMA Funds Limited, MCB Financial Services Limited (Trustee), BMA Asset Management Company Limited - Staff Provident Fund, BMA Capital Management Limited - Staff Provident Fund, entities having 10% or more of the unit holding of the Fund and key management personnel of the Management Company The transactions with related parties / connected persons are in the normal course of business, at contracted rates and terms determined in accordance with market rates Remuneration to the Management Company and the Trustee is determined in accordance with the provisions of the NBFC Regulations and the Trust Deed Details of transactions with related parties / connected persons are as follows: 9 CONTINGENCIES AND COMMITMENTS There were no contingencies and commitments outstanding as at March 31, 2017 and June 30, NET ASSET VALUE PER UNIT The net asset value (NAV) per unit, as disclosed on the Statement of Asset and Liabilities, is calculated by dividing the net assets of the Fund by the number of units in issue at the period / year end. 11 TAXATION The Fund's income is exempt from Income Tax as per clause (99) of part I of the Second Schedule to the Income Tax Ordinance, 2001 subject to the condition that not less than 90% of the accounting income for the year as reduced by capit al gains whether realized or unrealized is distributed to the unit holders (excluding distribution made by issuance of bonus units). 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. The management intends to distribute at least 90% of the aforementioned net accounting income earned by the Fund to the unit holders. Accordingly, no provision for current and deferred tax has been made in this condensed interim financial information. 12 EARNINGS PER UNIT Earnings per unit (EPU) for the period ended March 31, 2016 has not been disclosed as in the opinion of the management, determination of cumulative weighted average number of outstanding units for calculating EPU is not practicable

11 14.5 In addition to the above, there are certain other transactions and balances with related parties which have been disclosed in the respective notes. 15 FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value is the amount for which an asset could be exchanged, or liability can be settled, between knowledgeable willing parties in an arm's length transaction. Consequently, differences can arise between carrying values and the fair value estimates. Underlying the definition of fair value is the presumption that the Fund is a going concern without any intention or requirement to curtail materially the scale of its operations or to undertake a transaction on adverse terms. Financial assets which are traded in an open market are revalued at the market prices prevailing on the reporting date. The estimated fair value of all other financial asset s and liabilities is considered not significantly different from the carrying values as the items are either short term in nature or periodically repriced. Fair value of investments is determined as follows: - Investment in government securities are valued on the basis of average rates of brokers as announced by the Financial Markets Association of Pakistan - Investment in Term Finance Certificates and Sukuks are valued on the basis of rates determined by the Mutual Fund Association of Pakistan (MUFAP) in accordance with the methodology prescribed by SECP for valuation of debt securities. In the determination of rates MUF AP takes into account the holding pattern of these securities and categorizes them as traded, thinly traded and non traded securities - The fair value of all other financial assets and financial liabilities of the Fund approximate their carrying amounts due to short term maturities of these instruments Fair value hierarchy International Financial Reporting Standard 13, 'Fair Value Measurement' requires the Fund to classify assets using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels: Level 1: Level 2: Level 3: Fair value measurements using quoted price (unadjusted) in an active market for identical assets or liabilities. Fair value measurements using inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Fair value measurement using inputs for the asset or liability that are not based on observable market data (i.e. unobservable inputs)

12 16 GENERAL 16.1 Figures have been rounded off to the nearest Rupee Corresponding figures have been rearranged, wherever necessary, for the purpose of comparison and better presentation. No significant reclassifications have been made during the current period 17 DATE OF AUTHORISATION This condensed interim financial information has been authorized for issue by the Board of s of the Management Company on April 25,