Equity Funds

MEEZAN
ISLAMIC FUND (MIF)

Meezan Islamic Fund seeks to optimize
total investor returns by investing in
Shariah Compliant equities focusing on
both capital gains and dividend
income.
P H E N O M E N A L GROWTH IN
FOREIGN
REMITTANCES
BY
FY 20-21
Source: State Bank of Pakistan (SBP)
FUND INFORMATION
MANAGEMENT COMPANY
Al Meezan Investment Management Limited
Ground Floor, Block "B", Finance & Trade Centre, Shahrah-e-Faisal Karachi 74400, Pakistan.
Phone (+9221) 35630722-6, 111-MEEZAN
Fax: (+9221) 35676143, 35630808
Website: www.almeezangroup.com
E-mail: info@almeezangroup.com
BOARD OF DIRECTORS OF THE MANAGEMENT COMPANY

Mr. Ariful Islam Chairman
Mr. Muhammad Abdullah Ahmed Nominee Director - MBL
Mr. Moin M. Fudda Nominee Director - MBL
Mr. Furquan R Kidwai Independent Director
Mr. Mubashar Maqbool Nominee Director – PKIC
Mr. Tariq Mairaj Nominee Director - MBL
Mr. Naeem Sattar Nominee Director - PKIC
Mr. Feroz Rizvi Independent Director
Ms. Danish Zuberi Independent Director
Mr. Mohammad Shoaib, CFA Chief Executive Officer
CFO & COMPANY SECRETARY OF THE MANAGEMENT COMPANY

Syed Owais Wasti
AUDIT COMMITTEE
Mr. Feroz Rizvi Chairman
Mr. Tariq Mairaj Member
Mr. Naeem Sattar Member
RISK MANAGEMENT COMMITTEE

Mr. Mubashar Maqbool Chairman
Mr. Moin M. Fudda Member
Mr. Furquan R. Kidwai Member
HUMAN RESOURCE & REMUNERATION COMMITTEE
Mr. Mubashar Maqbool Member
Mr. Mohammad Shoaib, CFA Member
TRUSTEE
Central Depository Company of Pakistan Limited
CDC House, 99-B, Block B, S.M.C.H.S., Main Sharah-e-Faisal Karachi.
AUDITORS
A. F. Ferguson & Co.
Chartered Accountants
State Life Building# 1-C,
I.I. Chundrigar Road , Karachi-74000
SHARIAH ADVISER
Meezan Bank Limited
BANKERS TO THE FUND

Allied Bank Limited Habib Metropolitan Bank Limited - Islamic Banking
Al Baraka Islamic Bank B.S.C (E.C) MCB Bank Limited
Askari Bank Limited - Islamic Banking MCB Islamic Bank Limited
Bank Al Habib Limited - Islamic Banking Meezan Bank Limited
Bank Alfalah Limited National Bank of Pakistan - Islamic Banking
Bank Islami Pakistan Limited Samba Bank Limited
Dubai Islamic Bank Pakistan Limited Sindh Bank Limited
Faysal Bank Limited - Islamic Banking UBL Ameen - Islamic Banking
Habib Bank Limited -Islamic Banking
LEGAL ADVISER
Bawaney & Partners
3rd & 4th Floor, 68-C, Lane-13, Bokhari Commercial Area,
Phase VI, DHA, Karachi.
Phone (9221) 35156191-94 Fax: (9221) 35156195
E-mail: bawaney@cyber.net.pk
TRANSFER AGENT
Phone (+9221) 35630722-6, 111-MEEZAN
Fax: (+9221) 35676143, 35630808
DISTRIBUTORS
Meezan Bank Limited
Standard Chartered Bank (Pakistan) Limited
REPORT OF THE FUND MANAGER
Meezan Islamic Fund (MIF)
Type of Fund
Open end equity fund
Objective
The objective of MIF is to provide optimum returns to the investors from investment in Shariah Compliant
stocks for the given level of risk, while abiding by all applicable rules and regulations. Total return refers
to the returns from capital gains (realized and unrealized), dividend income and other income from
Shariah Compliant investments.
Strategy, Investment Policy and Asset Allocation

The performance of MIF is linked directly to the performance of equity market. The fund manager, Al
Meezan Investment Management Limited, actively manages the fund with an aim to provide maximum
risk adjusted total return to the investors. To control risk, the exposure in growth stocks is balanced
against that of high dividend stocks. Moreover, the fund manager strives to reduce equity exposure in
times when the market is trading above valuations while increasing equity exposures near troughs.
During the year, the fund increased its equity exposure to a maximum of 97.77%. However, it maintained
an average exposure close to 95.74% in equities during the year, while closing the period at around
95.95%. The fund raised exposure to the Cement sector significantly during the period under review owing
to rebound in economic activity, Exposure to the Oil and Gas Exploration sector was trimmed in line with
the theme to move towards sectors benefiting from rising economic activity in the country. As a result,
there was also a general trend in liquidating from defensive plays such as Power Generation, Fertilizer and
OMCs in addition to Oil Exploration Sector.
Sector Allocation for the year ended FY20 and FY21
Jun-21
40% Jun-20
33.0%
29.3%
30%
19.4% 18.8%
20% 17.6%
15.3%
8.5%
8.6% 8.2%
10% 7.7%
4.7% 5.0% 4.3% 4.3% 4.2% 3.7%
3.0%
1.9% 1.8%
0.6%
0%
Pharmaceutical
Fertilizer
Oil & Gas Exploration

Cement
Cash and others

Oil & Gas Marketing
Paper & Board

Textile Composite
Power Generation &

Automobile Assembler
Distribution
Companies
Companies
Top Holdings
Lucky Cement Ltd. 10.65%
Mari Petroleum Ltd. 7.73%
Engro Corporation 5.43%
Oil & Gas Development Co Ltd 4.73%
Meezan Bank Limited 4.61%
Pakistan Petroleum Ltd. 4.04%
Systems Limited 3.86%
Pakistan State Oil Co. Ltd. 3.56%
Kohat Cement Company Ltd 3.12%
The Hub Power Co. Ltd. 2.97%
Performance Review
During FY21, Meezan Islamic Fund (MIF) provided a positive return of 35.50% to its investors and KSE
Meezan Index (KMI 30) appreciated by 39.32% to close at 76,622 pts.
MIF KMI-30
Net Asset Value (NAV) as on June 30, 2020 –Rs. 46.77 54,995
Return During the Period 35.50% 39.32%
MIF posted a total income of Rs. 9,749 million in the fiscal year 2021 as compared to a total income of Rs.
1,363 million last year. Total income comprised of realized gains and unrealized gains on investments of
Rs. 1,859 million and Rs. 6,322 million respectively. Dividend income contributed Rs. 1,442 million to
income, while profit on saving accounts with banks amounted to Rs. 126 million. After accounting for
expenses of Rs. 1,237 million, the Fund posted a net income of Rs. 8,512 million. The net assets of the
Fund as at June 30, 2021 were Rs. 34,274 million as compared to Rs. 24,072 million at the end of year
depicting an increase of 42%. The net asset value per unit as at June 30, 2021 was Rs. 63.3761 as
compared to Rs. 46.7710 per unit as on June 30, 2020.
155
MIF Benchmark
145
135
Relative Performamance
125
115
105
95
85
75
65
55
Jul-20
Apr-21
May-21
Jun-21
Aug-20
Nov-20
Sep-20
Dec-20
Jan-21
Feb-21
Mar-21
Oct-20
Charity Statement
The Fund purifies the income earned by setting aside an amount payable by the Management Company
out of the income of the Trust to charitable/welfare organizations, in consultation with Shariah Advisor,
representing income that is Haram. During the year ended June 30, 2021 an amount of Rs. 38 million was
accrued as charity payable.
Distributions
There is NIL distribution by the Fund during the fiscal year ended June 30, 2021.
Breakdown of unit holdings by size:

(As on June 30, 2021)
Range (Units) No. of Investors
1 - 9,999 20,789
10,000 - 49,999 3,396
50,000 - 99,999 641
100,000 - 499,999 437
500,000 and above 112
Total 25,375
Summary of Actual Proxy Voted By the Fund
Resolutions For Against Abstain

Number 3 3 0 0
Percentage 100% 0% 0%
The proxy voting policy of Al Meezan Investment Management Limited, duly approved by Board of
Directors of the Management Company, is available on the website www.almeezangroup.com. A detailed
information regarding actual proxies voted by the Management Company in respect of funds is also
available without charge, upon request, to all unit holders.
PERFORMANCE TABLE
2021 2020 2019

Net assets (Rs. '000) (ex-distribution) 34,274,023.00 24,072,183.00 25,740,339.00
Net assets value / redemption price per unit
as at June 30 (Rs.) (ex-distribution) 63.3761 46.7710 47.9235
Offer price per unit as at June 30, (Rs.)
(ex-distribution) 64.8084 47.8280 49.0065
Highest offer price per unit (Rs.) 66.9236 62.4251 66.7191
Lowest offer price per unit (Rs.) 48.9781 38.0213 46.8951
Highest redemption price per unit (Rs.) 65.4446 61.0455 65.2446
Lowest redemption price per unit (Rs.) 47.8957 37.1811 45.8587
Distribution (%)
Interim N/A N/A N/A
Final N/A 5.00 N/A
Date of distribution
Interim N/A N/A N/A
Final N/A June 30, 2020 N/A
Income distribution (Rupees in '000) N/A N/A N/A
Growth distribution (Rupees in '000) N/A 1,236,296.00 N/A
Total return (%) 35.50 2.81 (24.33)
One Year Two Year Three Year

Average annual return as at June 30, 2021 (%) 35.50% 18.03% 1.77%
Past performance is not necessarily indicative of future performance and unit prices and investment returns
may go down, as well as up.
MEEZAN ISLAMIC FUND
STATEMENT OF ASSETS AND LIABILITIES
AS AT JUNE 30, 2021
2021 2020
Note ------------Rupees in '000-------------
Assets
Balances with banks 5 2,061,391 1,755,340

Investments 6 32,886,340 23,381,047
Receivable against sale of investments 34,569 73,789
Receivable against conversion of units 145,285 82,856
Dividend receivable 84,683 52,314
Advances, deposits and other receivables 7 189,717 13,419
Total assets 35,401,985 25,358,765
Liabilities
Payable to Al Meezan Investment Management Limited - Management Company 8 92,487 32,677

Payable to Central Depository Company of Pakistan Limited - Trustee 9 3,314 2,349
Payable to the Securities and Exchange Commission of Pakistan 10 6,201 5,024
Payable against redemption and conversion of units 85,604 116,155
Payable against purchase of investments 70,503 158,826
Dividend payable - 152,480
Payable to Meezan Bank Limited 1,035 654
Accrued expenses and other liabilities 11 868,818 818,415
Total liabilities 1,127,962 1,286,580
NET ASSETS 34,274,023 24,072,185
UNIT HOLDERS' FUND (AS PER STATEMENT ATTACHED) 34,274,023 24,072,185
CONTINGENCIES AND COMMITMENTS 12
NUMBER OF UNITS IN ISSUE 540,803,980 514,682,160
Rupees
NET ASSET VALUE PER UNIT 63.3761 46.7710
The annexed notes from 1 to 27 form an integral part of these financial statements.
For Al Meezan Investment Management Limited

(Management Company)
_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
_______________________________________________Annual Report 2021 | 56

MEEZAN ISLAMIC FUND
INCOME STATEMENT
FOR THE YEAR ENDED JUNE 30, 2021
Note 2021 2020

---------------- Rupees in '000-----------------
Income
Dividend income 1,442,120 1,074,874
Profit on saving account with banks 125,778 194,252
Realised gain on sale of investments 1,858,907 888,371
3,426,805 2,157,497
Net unrealised appreciation / (diminution) on re-measurement of investments
classified as 'financial assets at fair value through profit or loss' 6.2 6,322,470 (794,988)
Total income 9,749,275 1,362,509
Expenses
Remuneration of Al Meezan Investment Management Limited -
Management Company 8.1 620,088 502,387
Sindh Sales Tax on remuneration of the Management Company 8.2 80,611 65,310
Allocated expenses 8.3 32,024 25,119
Selling and marketing expenses 8.4 185,182 100,477
Remuneration of Central Depository Company of Pakistan Limited - Trustee 9.1 32,004 26,119
Sindh Sales Tax on remuneration of the Trustee 9.2 4,161 3,396
Annual fees to the Securities and Exchange Commission of Pakistan 10 6,201 5,024
Auditors' remuneration 13 721 721
Fees and subscription 2,610 2,802
Legal and professional charges 160 160
Brokerage expense 57,167 35,261
Bank and settlement charges 4,189 3,190
Provision for Sindh Workers' Welfare Fund 11.2 173,723 11,221
Charity expense 11.1 37,987 31,482
Total expenses 1,236,828 812,669
Net income for the year before taxation 8,512,447 549,840
Taxation 15 - -
Net income for the year after taxation 8,512,447 549,840
Allocation of net income for the year

Income already paid on units redeemed (2,272,229) (22,945)
6,240,218 526,895
Accounting income available for distribution
- Relating to capital gains 6,240,218 93,383
- Excluding capital gains - 433,512
6,240,218 526,895

_____________________ _____________________ _____________________

_______________________________________________Annual Report 2021 | 57

MEEZAN ISLAMIC FUND
STATEMENT OF COMPREHENSIVE INCOME
2021 2020
---------------- Rupees in '000-----------------
Other comprehensive income for the year - -
Total comprehensive income for the year 8,512,447 549,840

_____________________ _____________________ _____________________

_______________________________________________Annual Report 2021 | 58

MEEZAN ISLAMIC FUND
STATEMENT OF MOVEMENT IN UNIT HOLDERS’ FUND
2021 2020
Undistribute Undistribute
d Income / Over d Income / Over
Capital value Total Capital value Total
(Accumulate- distribution (Accumulate- distribution
d loss) d loss)
(Rupees in '000) (Rupees in '000)
Net assets at the beginning of the year 26,641,970 (1,860,387) (709,398) 24,072,185 27,600,726 (1,860,387) - 25,740,339
Issue of 766,372,501 units (2020: 629,460,674 units)

- Capital value (at net asset value per unit at the
beginning of the year) 35,844,008 - - 35,844,008 30,165,966 - - 30,165,966
- Element of income 9,051,895 - - 9,051,895 1,364,752 - - 1,364,752
Total proceeds on issuance of units 44,895,903 - - 44,895,903 31,530,718 - - 31,530,718
Redemption of 740,250,681 units (2020: 651,892,108 units)

beginning of the year) 34,622,265 - - 34,622,265 31,240,951 - - 31,240,951
- Element of loss 6,312,018 2,272,229 - 8,584,247 1,248,523 22,945 - 1,271,468
Total payments on redemption of units 40,934,283 2,272,229 - 43,206,512 32,489,474 22,945 - 32,512,419
Total comprehensive income for the year - 7,803,049 709,398 8,512,447 - 549,840 - 549,840
Distribution during the year - - - - - (526,895) (709,398) (1,236,293)
Income / (loss) for the year less distribution - 7,803,049 709,398 8,512,447 - 22,945 (709,398) (686,453)
Net assets at the end of the year 30,603,590 3,670,433 - 34,274,023 26,641,970 (1,860,387) (709,398) 24,072,185
Accumulated loss brought forward

- Realised (loss) / income (1,065,399) 5,520,342
- Unrealised loss (794,988) (7,380,729)
(1,860,387) (1,860,387)
- Relating to capital gains 6,240,218 93,383
6,240,218 526,895
Transfer to over distribution (note 1.6) (709,398) -
Distribution during the period: nil (June 30, 2020: Rs. 2.5
per unit i.e 5.0% of the par value of Rs. 50/- each) - (526,895)
Undistributed income / (accumulated loss) carried forward 3,670,433 (1,860,387)
Undistributed income / (accumulated loss) carried forward

- Realised loss (2,652,037) (1,065,399)
- Unrealised income / (loss) 6,322,470 (794,988)
3,670,433 (1,860,387)
(Rupees) (Rupees)
Net asset value per unit at the beginning of the year 46.7710 47.9235
Net asset value per unit at the end of the year 63.3761 46.7710

_____________________ _____________________ _____________________

_______________________________________________Annual Report 2021 | 59

MEEZAN ISLAMIC FUND
CASH FLOW STATEMENT
2021 2020
------------------- Rupees in '000 --------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Adjustments for:
Net unrealised (appreciation) / diminution on re-measurement of investments
classified as 'financial assets at fair value through profit or loss' (6,322,470) 794,988
2,189,977 1,344,828
(Increase) / decrease in assets
Investments (3,182,823) 838,294
Dividend receivable (32,369) 64,818
Receivable against sale of investment 39,220 78,296
Advances, deposits and other receivables (176,298) 5,147
(3,352,270) 986,555
Increase / (decrease) in liabilities
Payable to Al Meezan Investment Management Limited - Management Company 59,810 (47,287)
Payable to Central Depository Company of Pakistan Limited - Trustee 965 (230)
Payable to the Securities and Exchange Commission of Pakistan 1,177 (27,336)
Payable to Meezan Bank Limited 381 519
Payable against purchase of investment (88,323) 36,161
Accrued expenses and other liabilities 50,403 164,555
24,413 126,382
Net cash (used in) / generated from operating activities (1,137,880) 2,457,765
CASH FLOWS FROM FINANCING ACTIVITIES
Net receipts from issuance of units 44,833,474 31,510,753

Net payments against redemption of units (43,237,063) (32,470,339)
Dividend paid (152,480) (1,083,813)
Net cash generated from / (used in) financing activities 1,443,931 (2,043,399)
Net increase in cash and cash equivalents 306,051 414,366

Cash and cash equivalents at the beginning of the year 1,755,340 1,340,974
Cash and cash equivalents at the end of the year 5 2,061,391 1,755,340

_____________________ _____________________ _____________________

_______________________________________________Annual Report 2021 | 60

MEEZAN ISLAMIC FUND
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
1 LEGAL STATUS AND NATURE OF BUSINESS
1.1 Meezan Islamic Fund (the Fund) was established under a Trust Deed executed between Al Meezan Investment
Management Limited (Al Meezan) as Management Company and Central Depository Company of Pakistan Limited
(CDC) as Trustee. The Trust Deed was executed on June 16, 2003 and was approved by the Securities and
Exchange Commission of Pakistan (SECP) on June 4, 2003 under the Non-Banking Finance Companies
(Establishment and Regulation) Rules, 2003, (NBFC Rules) and the Non-Banking Finance Companies and Notified
Entities Regulations, 2008, (NBFC Regulations, 2008). The Management Company has been licensed by the
Securities and Exchange Commission of Pakistan (SECP) to act as an Asset Management Company under the the
NBFC Rules through a certificate of registration issued by the SECP. The registered office of the Management
Company of the Fund is situated at Ground Floor, Block 'B', Finance and Trade Centre, Shahrah-e-Faisal, Karachi,
74400, Pakistan.
1.2 The Fund has been formed to enable the unit holders to participate in a diversified portfolio of securities, which are
Shariah compliant. Under the Trust Deed, all the conducts and acts of the Fund are based on Shariah. The
Management Company has appointed Meezan Bank Limited (MBL) as its Shariah Advisor to ensure that the activities
of the Fund are in compliance with the principles of Shariah. The investment objectives and policies are explained in
the Fund's offering document.
1.3 The Fund is an open-end fund listed on the Pakistan Stock Exchange Limited. Units are offered for public subscription
on a continuous basis. The units are transferable and can be redeemed by surrendering them to the Fund. The Fund is
categorized as a Equity Scheme in accordance with Circular 7 of 2009 issued by Securities and Exchange
Commission of Pakistan (SECP).
1.4 The Management Company has been assigned a quality rating of AM1 by VIS dated December 31, 2020 (2020: AM1
dated December 31, 2019) and by PACRA dated June 23, 2021 (2020: AM1 dated June 26, 2020). The rating reflects
the Company’s experienced management team, structured investment process and sound quality of systems and
processes.
1.5 The title to the assets of the Fund are held in the name of Central Depository Company of Pakistan Limited as the
Trustee of the Fund.
1.6 During the previous year, the Fund had made excess distribution amounting to Rs 709.398 million which was disclosed
in the statement of movement in the Unit holders’ Fund as “over distribution”. In the current year, the Fund had profits
available for distribution in excess of the minimum threshold specified in note 15 to the financial statements and the
Fund has utilised such profits to set-off excess distribution made in the previous year.
1.7 The Trust Act, 1882 has been repealed due to promulgation of Provincial Trust Act “Sindh Trusts Act, 2020” as
empowered under the Eighteenth Amendment to the Constitution of Pakistan. Various new requirements including
registration under the Trust Act have been introduced. The Management Company has submitted Collective
Investment Scheme Trust Deed to Registrar (acting under Sindh Trusts Act, 2020) for registration to fulfill the
requirement for registration of Trust Deed under Sindh Trusts Act, 2020.
2 BASIS OF PRESENTATION
The transactions undertaken by the Fund are in accordance with the process prescribed under the Shariah guidelines
issued by the Shariah Advisor are accounted for on substance rather than the form prescribed by the aforementioned
guidelines. This practice is being followed to comply with the requirements of the accounting and reporting standards
as applicable in Pakistan.
3 BASIS OF PREPARATION
3.1 Statement of compliance
These financial statements have been prepared in accordance with the accounting and reporting standards as
applicable in Pakistan. The accounting and reporting standards applicable in Pakistan comprise of:
- International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board
(IASB) as notified under the Companies Act, 2017;
- Provisions of and directives issued under the Companies Act 2017, along with part VIIIA of the repealed
Companies Ordinance, 1984; and
- the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (the NBFC Rules), the Non-
Banking Finance Companies and Notified Entities Regulations, 2008 (the NBFC Regulations) and the
requirements of the Trust Deed.
_______________________________________________Annual Report 2021 | 61

Where provisions of and directives issued under the Companies Act, 2017, part VIIIA of the repealed Companies
Ordinance 1984, the NBFC Rules, the NBFC Regulations and the requirements of the Trust Deed differ from the
IFRSs, the provisions of and directives issued under the Companies Act, 2017, part VIIIA of the repealed Companies
Ordinance 1984, the NBFC Rules, the NBFC Regulations and the requirements of the Trust Deed have been followed.
3.2 Standards, interpretations and amendments to published accounting and reporting standards that are
effective in the current year
There are certain amendments to the published accounting and reporting standards that are mandatory for the Fund's
annual accounting period beginning on July 1, 2020. However, these do not have any significant impact on the Fund's
operations and, therefore, have not been detailed in these financial statements.
3.3 Standards, interpretations and amendments to published accounting and reporting standards that are not yet
effective
There are certain standards, amendments and interpretations that are mandatory for the Fund's accounting period
beginning on or after July 1, 2021 but are considered not to be relevant or will not have any significant effect on the
Fund's operations and are therefore not disclosed in these financial statements.
3.4 Critical accounting estimates and judgments
The preparation of financial statements in accordance with the accounting and reporting standards as applicable in
Pakistan requires the management to make judgements, estimates and assumptions that affect the application of
policies and reported amounts of assets and liabilities, income and expenses. The estimates, judgements and
associated assumptions are based on historical experience and various other factors including expectations of future
events that are believed to be reasonable under the circumstances, the results of which form the basis of making
judgements about carrying values of assets and liabilities. The estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates are recognised in the year in which the estimate is revised if the
revision affects only that year, or in the year of revision and future years if the revision affects both current and future
years.
The estimates and judgements that have a significant effect on the financial statements of the Fund relate to
classification, valuation and impairment of financial assets (notes 4.3 and 6).
3.5 Accounting convention
These financial statements have been prepared under the historical cost convention except for investments which
have been classified as 'at fair value through profit or loss' and measured at their respective fair values.
3.6 Functional and presentation currency
Items included in the financial statements are measured using the currency of the primary economic environment in
which the Fund operates. These financial statements are presented in Pakistani Rupee, which is the Fund's functional
and presentation currency.
4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
4.1 The principal accounting policies applied in the preparation of these financial statements are set out below. These
policies have been applied consistently to all the years presented.
4.2 Cash and cash equivalents
These comprise balances with banks in savings and current accounts, and other short-term highly liquid investments
with original maturities of three months or less.
4.3 Financial assets
4.3.1 Classification and subsequent measurement
4.3.1.1 Equity instruments
Equity instruments are instruments that meet the definition of equity from the issuer's perspective and are instruments
that do not contain a contractual obligation to pay and that evidence a residual interest in the issuer's net assets.
_______________________________________________Annual Report 2021 | 62

All equity investments are required to be measured in the “Statement of Assets and Liabilities” at fair value, with gains
and losses recognised in the “Income Statement”, except where an irrevocable election has been made at the time of
initial recognition to measure the investment at Fair Value through Other Comprehensive Income (FVOCI). The
management considers its investment in equity securities being managed as a group of assets and hence has
classified them as FVPL. Accordingly, the irrevocable option has not been considered.
The dividend income for equity securities classified under Fair Value through Profit or Loss is recognised in the Income
Statement.
Since all investments in equity instruments have been designated as FVPL, the subsequent movement in the fair value
of equity securities is routed through the Income Statement.
4.3.2 Impairment
The fund assesses on a forward looking basis the expected credit loss (ECL) associated with its financial assets (other
than debt instruments) carried at amortised cost and FVOCI. The fund recognises loss allowances for such losses at
each reporting date. The measurement of ECL reflects:
- An unbiased and probability weighted amount that is determined by evaluating a range of possible outcomes;
- The time value of money; and
- Reasonable and supportable information that is available without undue cost or effort at the reporting date about
past events, current conditions and forecasts of future economic conditions.
4.3.3 Regular way contracts
All regular way purchases and sales of financial assets are recognised on the trade date i.e. the date on which the
Fund commits to purchase or sell the asset. Regular way purchases / sales of assets require delivery of securities
within two days from the transaction date as per the stock exchange regulations.
4.3.4 Initial recognition and measurement
Financial assets are recognised at the time the Fund becomes a party to the contractual provisions of the instruments.
These are initially recognised at fair value plus transaction costs except for financial assets carried 'at fair value
through profit or loss'. Financial assets carried 'at fair value through profit or loss' are initially recognised at fair value
and transaction costs are recognised in the Income Statement.
4.3.5 Derecognition
Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or
have been transferred and the Fund has transferred substantially all risks and rewards of ownership. Any gain or loss
on derecognition of financial assets is taken to the Income Statement.
4.3.6 Derivatives
Derivative instruments are initially recognised at fair value and subsequent to initial measurement each derivative
instrument is remeasured to its fair value and the resultant gain or loss is recognised in the Income Statement.
4.4 Financial liabilities
Financial liabilities are recognised at the time when the Fund becomes a party to the contractual provisions of the
instruments. These are initially recognised at fair values and subsequently stated at amortised cost.
A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expired. Any gain
or loss on derecognition of financial liabilities is taken to the Income Statement.
4.5 Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities are offset and the net amount is reported in the 'Statement of Assets and
Liabilities' when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle
on a net basis, or to realise the assets and settle the liabilities simultaneously.
_______________________________________________Annual Report 2021 | 63

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 Net asset value per unit
The Net Asset Value (NAV) per unit as disclosed in the Statement of Assets and Liabilities is calculated by dividing the
net assets of the Fund by the number of units in circulation at the year end.
4.8 Issue and redemption of units
Units issued are recorded at the offer price, determined by the Management Company for the applications received by
the Management Company / distributors during business hours on that day. The offer price represents the Net Asset
Value (NAV) per unit as of the close of the business day, plus the allowable sales load and provision of any duties and
charges if applicable. The sales load is payable to the Management Company / distributors.
Units redeemed are recorded at the redemption price applicable to units for which the Management Company /
distributors receive redemption application during business hours of that day. The redemption price is equal to NAV as
of the close of the business day, less an amount as the Management Company may consider to be an appropriate
provision of duties and charges.
4.9 Distributions to unit holders
Distributions to the unit holders are recognised upon declaration and approval by the Board of Directors of the
Management Company. Based on Mutual Funds Association of Pakistan's (MUFAP) guidelines duly consented by the
SECP, distribution for the year also includes portion of income already paid on units redeemed during the year.
Distributions declared subsequent to the year end reporting date are considered as non-adjusting events and are
recognised in the financial statements of the year in which such distributions are declared and approved by the Board
of Directors of the Management Company.
4.10 Element of income / (loss) and capital gains / (losses) included in prices of units issued less those in units
redeemed
Element of income represents the difference between Net Asset Value (NAV) per unit on the issuance or redemption
date, as the case may be, of units and the NAV per unit at the beginning of the relevant accounting period. Further, the
element of income is a transaction of capital nature and the receipt and payment of element of income is taken to unit
holders' fund. However, to maintain the same ex-dividend NAV of all units outstanding on the accounting date, net
element of income contributed on issue of units lying in unit holders fund is refunded on units in the same proportion as
dividend bears to accounting income available for distribution.
4.11 Revenue recognition
- Gains / (losses) arising on sale of investments are included in Income Statement and are recognised when the
transaction takes place.
- Unrealised gains / (losses) arising on remeasurement of investments classified as financial assets 'at fair value
through profit or loss' are included in the Income Statement in the period in which they arise.
- Dividend income is recognised when the Fund's right to receive the same is established i.e. on the
commencement of date of book closure of the investee company / institution declaring the dividend.
- Profit on saving account with banks is recognised on a time proportion basis using the effective yield method.
4.12 Expenses
All expenses chargeable to the Fund including remuneration of the Management Company and Trustee and annual fee
of the SECP are recognised in the Income Statement on an accrual basis.
_______________________________________________Annual Report 2021 | 64

4.13 Taxation
Current
Provision for current taxation is based on taxable income at the current rates of taxes after taking into account tax
credits and rebates, if any. The charge for current tax is calculated using the prevailing tax rates.
Deferred
Deferred tax is accounted for using the balance sheet liability method in respect of all temporary differences arising
from differences between the carrying amount of assets and liabilities in the financial statements and the
corresponding tax bases used in the computation of the taxable profit.
The deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are
recognised to the extent that it is probable that taxable profits will be available against which the deductible temporary
differences, unused tax losses and tax credits can be utilized. Deferred tax is calculated at the rates that are expected
to apply to the period when the differences reverse based on enacted tax rates.
The income of the Fund is exempt from income tax under clause 99 of Part I of the Second Schedule to the Income
Tax Ordinance, 2001 subject to the condition that not less than 90 percent of its accounting income for the year, as
reduced by capital gains, whether realised or unrealised, is distributed amongst the unitholders. Furthermore, for the
purpose of determining distribution of at least 90 percent of the accounting income, the income distributed through
bonus units shall not be taken into account.
The Fund is also exempt from the provisions of section 113 (minimum tax) under clause 11A of Part IV of the Second
Schedule to the Income Tax Ordinance, 2001. Moreover, super tax introduced in the Finance Act, 2015 is also not
applicable on funds (Section 4B of the Income Tax Ordinance, 2001).
4.14 Earnings / (loss) per unit
Earnings / (loss) per unit is calculated by dividing the net income / (loss) of the year after taxation of the Fund by the
weighted average number of units outstanding during the year.
Earnings / (loss) per unit (EPU) has not been disclosed as, in the opinion of the management, the determination of
cumulative weighted average number of outstanding units for calculating EPU is not practicable.
4.15 Foreign currency translation
Transactions denominated in foreign currencies are accounted for in Pakistani Rupees at the exchange rates
prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation at year end exchange rates for monetary assets and liabilities denominated in
foreign currencies are recognised in the income statement.
Note 2021 2020

------------------- Rupees in '000 -------------------
5 BALANCES WITH BANKS
Balances with banks in:

Savings accounts 5.1 2,050,598 1,747,297
Current account 10,793 8,043
2,061,391 1,755,340
5.1 This includes balance maintained with Meezan Bank Limited (a related party) that has an expected profit rate of 2.5%
(2020: 3%) per annum. Other profit and loss sharing accounts have expected profit rates ranging from 1.50% to 7.32%
per annum (2020: 1.50% to 7.50% per annum).
Note 2021 2020

------------------- Rupees in '000 -------------------
6 INVESTMENTS
Investments - 'at fair value through profit or loss' 6.1 32,886,340 23,381,047
_______________________________________________Annual Report 2021 | 65

6.1 Shares of listed companies - 'ordinary shares'
Percentage in relation to
Unrealised
Total Paid-up capital
Purchases Carrying value Market value appreciation/
As at July 1, Bonus / Sales during As at June 30, Net assets market of investee
Name of the investee company during the as at June 30, as at June (dimunition)
2020 Right issue the year 2021 of the value of company (with
year 2021 30, 2021 as at June 30,
Fund invest- face value of
2021
ments investment)
-------------------Number of shares-------------------- -------------------(Rupees in '000)-------------------- -------------------------%-------------------------
Sectors / companies
Automobile assembler
Honda Atlas Cars (Pakistan) Limited 179,000 150,000 - 329,000 - - - - - - -
Millat Tractors Limited 100,113 424,430 65,567 - 590,110 477,602 637,089 159,487 1.86 1.94 1.05
Pak Suzuki Motor Company Limited - 172,000 - 122,000 50,000 15,142 17,772 2,630 0.05 0.05 0.06
Indus Motor Company Limited 39,740 83,050 - 122,790 - - - - - - -
1.90 1.99 1.11
Automobile parts and accessories
Agriauto Industries Limited (note 6.1.1) 436,300 - - 295,600 140,700 25,607 38,607 13,000 0.11 0.12 0.49
Panther Tyres Limited - 202,090 - - 202,090 13,298 13,970 672 0.04 0.04 0.14
0.15 0.16 0.63
Chemicals
Engro Polymer & Chemicals Limited 15,913,721 9,272,000 - 8,710,500 16,475,221 524,379 778,289 253,910 2.27 2.37 1.81
Dynea Pakistan Limited (Note 6.1.1) - 293,000 - - 293,000 65,603 64,753 (850) 0.19 0.20 1.55
ICI Pakistan Limited 1,109,985 107,600 - 298,050 919,535 645,108 798,892 153,784 2.33 2.43 1.00
Ghani Global Holdings Limited (Note - 11,935,500 858,550 12,790,500 3,550 57 176 119 0.00 0.00 0.00
6.1.3)
Lotte Chemical Pakistan Limited 6,661,000 50,000 - 6,711,000 - - - - - - -
Ittehad Chemicals Limited 117,500 - - 117,500 - - - - - - -
Nimir Resins Limited (Note 6.1.1) - 7,300,000 - 6,925,000 375,000 8,092 7,556 (536) 0.02 0.02 0.13
Sitara Chemicals Industries Limited 30,500 - - - 30,500 8,452 10,736 2,284 0.03 0.03 0.14
Sitara Peroxide Limited 157,000 - - 157,000 - - - - - - -
4.84 5.05 4.64
Cement
Attock Cement Pakistan Limited 270,200 165,200 - 10,000 425,400 60,772 76,495 15,723 0.22 0.23 0.31
Cherat Cement Company Limited 2,724,100 2,147,600 - 1,536,700 3,335,000 454,703 591,562 136,859 1.73 1.80 1.72
D.G. Khan Cement Company Limited 3,557,500 3,540,000 - 4,143,851 2,953,649 345,010 348,294 3,284 1.02 1.06 0.67
Fauji Cement Company Limited 2,550,000 8,600,000 - 6,020,500 5,129,500 123,909 117,979 (5,930) 0.34 0.36 0.37
Kohat Cement Company Limited 4,488,850 1,038,000 - 172,100 5,354,750 803,677 1,105,702 302,025 3.23 3.36 2.67
Lucky Cement Limited 3,798,203 1,792,640 - 1,224,851 4,365,992 2,542,496 3,769,772 1,227,276 11.00 11.46 1.35
Pow er Cement Limited - 3,500,000 - 2,860,500 639,500 6,668 6,146 (522) 0.02 0.02 0.06
Maple Leaf Cement Factory Limited 13,447,000 20,109,622 - 15,369,808 18,186,814 695,097 854,417 159,320 2.49 2.60 1.66
20.05 20.89 8.80
Paper and Board
Cherat Packaging Limited 276,747 100 - 115,000 161,847 18,960 32,193 13,233 0.09 0.10 0.38
Century Paper & Board Mills Limited 348,600 3,283,000 391,100 50,100 3,972,600 339,121 484,935 145,814 1.41 1.47 2.25
Roshan Packages Limited 200,000 3,241,500 - 109,000 3,332,500 125,232 109,773 (15,459) 0.32 0.33 2.35
Security Papers Limited - 41,000 - - 41,000 6,327 5,927 (400) 0.02 0.02 0.07
Packages Limited 1,421,953 358,672 - 131,200 1,649,425 632,630 899,267 266,637 2.62 2.73 1.85
4.46 4.66 6.90
Technology and communication
Avanceon Limited 739,630 5,086,000 604,025 1,910,500 4,519,155 274,606 414,316 139,710 1.21 1.26 1.76
Netsol Technologies Limited 142,600 - - 142,600 - - - - - - -
Pakistan Telecommunication Company
Limited "A" 800,000 14,112,000 - 11,039,000 3,873,000 41,542 45,856 4,314 0.13 0.14 0.10
TPL Trakker Limited - 3,564,000 - 2,959,000 605,000 7,260 10,594 3,334 0.03 0.03 0.32
World call Telecom Limited - 1,600,000 - - 1,600,000 6,216 6,336 120 0.02 0.02 0.09
Systems Limited 2,384,900 325,900 226,360 496,600 2,440,560 459,535 1,367,251 907,716 3.99 4.16 1.78
5.39 5.60 4.06
Refinery
Attock Refinery Limited - 450,000 - 350,000 100,000 24,985 25,645 660 0.07 0.08 0.09
Byco Petroleum Pakistan Limited - 23,100,000 1,500,000 21,600,000 221,804 250,776 28,972 0.73 0.76 0.41
National Refinery Limited - 25,000 - 25,000 - - - - - - -
0.81 0.84 0.50
Unrealised Percentage in relation to

appreciation Total Paid-up capital
Purchases Carrying value Market value
/
Name of the investee company during the as at June 30, as at June
2020 Right issue the year 2021 (dimunition) of the value of company (with
year 2021 30, 2021
as at June 30, Fund invest- face value of
_______________________________________________Annual
2021
Report 2021 | 66
ments investment)
Byco Petroleum Pakistan Limited - 23,100,000 1,500,000 21,600,000 221,804 250,776 28,972 0.73 0.76 0.41
0.81 0.84 0.50

/
year 2021 30, 2021
2021 ments investment)
Commercial Banks
Meezan Bank Limited
(a related party of the Fund) 12,075,097 2,362,000 1,258,209 1,564,490 14,130,816 932,744 1,630,837 698,093 4.76 4.96 1.00
BankIslami Pakistan Limited 6,447,500 10,245,000 - 2,000,000 14,692,500 161,798 165,144 3,346 0.48 0.50 1.33
5.23 5.47 2.32
Oil and Gas Marketing Companies
Attock Petroleum Limited 906,334 10,000 - 118,000 798,334 243,916 256,289 12,373 0.75 0.78 0.80
Hascol Petroleum Limited (note 6.1.3) 13,533,361 3,427,500 - 16,920,000 40,861 619 365 (254) 0.00 0.00 0.00
Hi-Tech Lubricants Limited 305,000 1,669,500 - 1,924,500 50,000 2,025 3,546 1,521 0.01 0.01 0.04
Shell Pakistan Limited - 273,200 174,200 182,000 265,400 47,784 46,498 (1,286) 0.14 0.14 0.12
Pakistan State Oil Company
Limited (note 6.1.3) 4,861,259 3,493,745 - 2,732,103 5,622,901 1,058,821 1,260,936 202,115 3.68 3.83 1.20
Sui Southern Gas Pipelines Limited 745,000 - - 745,000 - - - - - - -
Sui Northern Gas Pipelines Limited 10,100,300 5,075,000 - 10,999,500 4,175,800 194,626 202,860 8,234 0.59 0.62 0.66
5.16 5.38 2.83
Oil and Gas Exploration Companies
Oil and Gas Development
Company Limited 17,271,568 14,016,990 - 13,672,745 17,615,813 1,806,544 1,674,031 (132,513) 4.88 5.09 0.41
Pakistan Oilfields Limited 2,647,522 344,000 - 880,915 2,110,607 751,690 831,284 79,594 2.43 2.53 0.74
Pakistan Petroleum Limited 16,327,428 10,972,557 - 10,835,105 16,464,880 1,496,296 1,429,648 (66,648) 4.17 4.35 0.61
Mari Petroleum Company Limited
(note 6.1.3) 2,020,667 30,000 - 256,420 1,794,247 2,231,388 2,735,132 503,744 7.98 8.32 1.34
19.47 20.28 3.10
Pharmaceuticals
Abbott Laboratories (Pakistan) Limited 69,050 - - - 69,050 45,780 54,712 8,932 0.16 0.17 0.07
AGP Limited 5,266,500 520,500 - 2,544,700 3,242,300 356,189 380,419 24,230 1.11 1.16 1.16
GlaxoSmithkline Pakistan Limited 5,816 - - 5,816 - - - - - - -
GlaxoSmithkline Consumer
Healthcare Products Limited 374,656 - - 10,000 364,656 99,070 91,197 (7,873) 0.27 0.28 0.31
Ferozsons Laboratories Limited - 100,000 4,000 80,000 24,000 7,838 8,468 630 0.02 0.03 0.07
Highnoon Laboratories Limited
(note 6.1.3) 49,878 90,000 7,432 15,550 131,760 72,557 79,055 6,498 0.23 0.24 0.35
The Searle Company Limited
(note 6.1.3) 2,761,879 1,172,282 403,244 810,361 3,527,044 762,496 855,731 93,235 2.50 2.60 1.47
4.29 4.47 3.42
Power Generation and Distribution
The Hub Pow er Company Limited 20,884,921 14,975,759 - 22,682,407 13,178,273 1,085,404 1,049,913 (35,491) 3.06 3.19 1.02
K - Electric Limited (6.1.1) 159,270,500 16,150,000 - 65,356,500 110,064,000 346,520 460,068 113,548 1.34 1.40 0.40
4.41 4.59 1.41
Fertilizer
Engro Corporation Limited (note 6.1.2) 7,873,573 1,978,321 - 3,332,175 6,519,719 1,936,863 1,920,774 (16,089) 5.60 5.84 1.13
Engro Fertilizers Limited 16,475,252 5,684,833 - 8,325,466 13,834,619 864,443 972,159 107,716 2.84 2.96 1.04
8.44 8.80 2.17
Engineering
Amreli Steels Limited 121,500 - - 121,500 - - - - - - -
Agha Steels Industries Limited - 8,195,820 - 5,056,910 3,138,910 103,362 105,875 2,513 0.31 0.32 0.54
Aisha Steel Mills Limited - 4,100,000 - - 4,100,000 114,467 102,131 (12,336) 0.30 0.31 0.54
International Industries Limited 1,713,140 1,413,000 - 904,700 2,221,440 331,814 468,768 136,954 1.37 1.43 1.68
Ittefaq Iron Industries Limited - 5,181,500 - - 5,181,500 104,935 98,189 (6,746) 0.29 0.30 3.59
International Steel Limited 5,537,800 3,009,870 - 5,239,563 3,308,107 236,737 309,010 72,273 0.90 0.94 0.76
Mughal Iron & Steel Industries Limited 2,528,500 2,604,000 595,520 1,490,500 4,237,520 275,525 442,397 166,872 1.29 1.35 1.45
KSB Pumps Company Limited 73,700 - - 35,000 38,700 5,573 8,586 3,013 0.03 0.03 0.29
4.48 4.67 8.86
Food and Personal Care Products
Al-Shaheer Corporation Limited
(note 6.1.3) 61,463 - 1,248 - 62,711 716 1,250 534 0.00 0.00 0.02
At-Tahur Limited 120,045 500,000 12,004 - 632,049 12,038 14,727 2,689 0.04 0.04 0.36
National Foods Limited (note 6.1.1) 203,320 - 50,830 - 254,150 50,921 58,205 7,284 0.17 0.18 0.14
Unity Foods Limited 2,648,846 16,999,500 - 11,760,346 7,888,000 217,584 351,174 133,590 1.02 1.07 0.79
1.24 1.29 1.31

_______________________________________________Annual
appreciation Report
Total 2021 | 67
Paid-up capital
At-Tahur Limited 120,045 500,000 12,004 - 632,049 12,038 14,727 2,689 0.04 0.04 0.36
National Foods Limited (note 6.1.1) 203,320 - 50,830 - 254,150 50,921 58,205 7,284 0.17 0.18 0.14
Unity Foods Limited 2,648,846 16,999,500 - 11,760,346 7,888,000 217,584 351,174 133,590 1.02 1.07 0.79
1.24 1.29 1.31

/
year 2021 30, 2021
2021 ments investment)
Glass and Ceramics

Tariq Glass Industries Limited 527,750 - - 527,750 - - - - - - -
Ghani Global Glass Limited - 2,000,000 - 1,540,000 460,000 7,958 12,448 4,490 0.04 0.04 0.19
Shabbir Tiles and Ceramics Limited
(Note 6.1.1) - 2,395,000 - - 2,395,000 46,895 79,873 32,978 0.23 0.24 0.73
Ghani Glass Limited 866,000 100,000 409,200 122,000 1,253,200 39,876 60,404 20,528 0.18 0.18 0.15
0.45 0.46 1.07
Textile Composite
Feroze1888 Mills Limited 1,704,600 494,500 - 816,500 1,382,600 120,621 138,965 18,344 0.41 0.42 0.37
Interloop Limited 8,917,500 6,057,000 - 1,724,000 13,250,500 717,982 927,933 209,951 2.71 2.82 1.52
Kohinoor Textile Mills Limited
(note 6.1.3) 244,014 1,494,500 - 406,500 1,332,014 97,946 100,167 2,221 0.29 0.30 0.45
Nishat Mills Limited 3,625,600 3,332,900 - 1,575,000 5,383,500 495,358 502,281 6,923 1.47 1.53 1.53
4.87 5.08 3.86
Leather & Tanneries
Service Global Footw ear Limited - 1,021,325 - - 1,021,325 55,779 59,063 3,284 0.17 0.18 0.50
Miscellaneous
Shifa International Hospital Limited - 65,000 - 65,000 - - - - - - -
Synthetic Products Enterprises Limited - 1,345,000 60,525 365,000 1,040,525 48,482 44,752 (3,730) 0.13 0.14 1.13
0.13 0.14 1.13
Total as at June 30, 2021 390,664,729 26,563,870 32,886,340 6,322,470
Total as at June 30, 2020 24,176,035 23,381,047 (794,988)
6.1.1 All shares have a nominal value of Rs 10 each except for the shares of Thal Limited, Agriauto Industries Limited
Dynea Pakistan Limited, Shabbir Tiles and Ceramics Limited, Nimir Resins Limited and National Foods Limited which
have a nominal value of Rs 5 each and K-Electric Limited which have a nominal value of Rs 3.5 each.
6.1.2 Investments include 1,060,000 shares of Engro Corporation Limited, having market value of Rs 312.29 million as at
June 30, 2021 (2020: Rs. 310.50 million) which have been pledged with National Clearing Company of Pakistan
Limited for guaranteeing settlement of the Fund's trades in accordance with Circular No. 11 dated October 23, 2007
issued by the SECP.
6.1.3 The Finance Act, 2014 introduced amendments to the Income Tax Ordinance 2001 as a result of which companies
were liable to withhold five percent of the bonus shares to be issued. The shares so withheld were only to be released
if the Fund deposits tax equivalent to five percent of the value of the bonus shares issued to the Fund including bonus
shares withheld, determined on the basis of day-end price on the first day of closure of books of the issuing company.
In this regard, a constitutional petition had been filed by Collective Investment Schemes (CISs) through their Trustees
in the High Court of Sindh, challenging the applicability of withholding tax provisions on bonus shares received by
CISs. The petition was based on the fact that because CISs are exempt from deduction of income tax under Clause 99
Part I to the Second Schedule of the Income Tax Ordinance 2001, the withholding tax provision should also not be
applicable on bonus shares received by CISs. A stay order had been granted by the Honourable High Court of Sindh
in favour of CISs.
During the year ended June 30, 2018, the Supreme Court of Pakistan passed a judgement on June 27, 2018 whereby
the suits which are already pending or shall be filed in future must only be continued / entertained on the condition that
a minimum of 50 percent of the tax calculated by the tax authorities is deposited with the authorities. Accordingly, the
CISs were required to pay minimum 50% of the tax calculated by the tax authorities for the case to remain continued.
The CISs failed to deposit the minimum 50% of the tax liability and accordingly the stay got vacated automatically
during the year ended June 30, 2019. During the year ended June 30, 2020, the CISs have filed a fresh constitutional
petition via CP 4653 dated July 11, 2019. In this regard, on July 15, 2019, the Honourable High Court of Sindh has
issued notices to the relevant parties and has ordered that no third party interest on bonus shares issued to the Funds
in lieu of their investments be created in the meantime. The matter is still pending adjudication and the Funds have
included these shares in their portfolio, as the management is confident that the decision of the constitutional petition
will be in favour of the CISs.
_______________________________________________Annual Report 2021 | 68

Further, the Finance Act, 2018 effective from July 1, 2018 has omitted Section 236M of Income Tax Ordinance, 2001
requiring every company quoted on stock exchange issuing bonus shares to the shareholders of the company, to
withhold five percent of the bonus shares to be issued. Therefore, bonus shares issued to the Fund during the year
were not withheld by the investee companies.
As at June 30, 2021, the market value of bonus shares of the Fund withheld by certain companies at the time of
declaration of bonus shares amounted to Rs. 62.612 million (2020: Rs. 49.076 million).
Note 2021 2020

6.2 Net unrealised appreciation / (diminution) on re-measurement -------- Rupees '000 --------
of investments classified as 'financial
assets at fair value through profit or loss'
Market value of investments 6.1 32,886,340 23,381,047

Carrying value of investments 6.1 (26,563,870) (24,176,035)
6,322,470 (794,988)
7 ADVANCES, DEPOSITS AND OTHER RECEIVABLES
Security deposit with Central Depository Company of Pakistan Limited 100 100
Security deposit with National Clearing Company of Pakistan Limited 2,500 2,500
Advance against IPO 7.1 175,910 -
Profit receivable on saving accounts with banks 11,207 10,819
189,717 13,419
7.1 This pertains to advance made against subscription of IPO of Pakistan Aluminium Beverage Cans Limited.
8 PAYABLE TO AL MEEZAN INVESTMENT MANAGEMENT

LIMITED - MANAGEMENT COMPANY
Management fee payable 8.1 3,738 5,286

Sindh Sales Tax on management fee payable 8.2 486 687
Allocated expenses payable 8.3 3,124 2,016
Selling and marketing expenses payable 8.4 82,065 23,914
Sales load payable 2,720 685
Sindh Sales Tax on sales load payable 354 89
92,487 32,677
8.1 As per regulation 61 of the NBFC Regulations, 2008, the Management Company is entitled to a remuneration equal to
an amount not exceeding the maximum rate of management fee as disclosed in the Offering Document subject to the
total expense ratio limit. Keeping in view the maximum allowable threshold, the Management Company has charged its
remuneration at the rate of 2% (2020: 2%) per annum of the average net assets of the Fund during the year ended
June 30, 2021. The remuneration is payable to the Management Company monthly in arrears.
8.2 During the year, an amount of Rs 80.611 million (2020: Rs 65.310 million) was charged on account of sales tax on
management fee levied through the Sindh Sales Tax on Services Act, 2011, and an amount of Rs 80.812 million
(2020: Rs 70.341 million) has been paid to the Management Company which acts as a collecting agent.
8.3 In accordance with Regulation 60 of the NBFC Regulations, the Management Company is entitled to charge fees and
expenses related to registrar services, accounting, operation and valuation services, related to a Collective Investment
Scheme (CIS).
The management company based on its own discretion has charged allocated expenses at the rate of 0.1% of
average annual net assets from July 1, 2020 to March 9, 2021 and 0.11% from March 10, 2021 to June 30, 2021
(2020: 0.1%).
_______________________________________________Annual Report 2021 | 69

8.4 The SECP has allowed the Asset Management Companies to charge selling and marketing expenses to all categories
of open-end mutual funds (except fund of funds) upto a maximum limit approved by the Board of Directors of the
Management Company as part of annual plan.
Accordingly, the Management Company has charged selling and marketing expenses based on its discretion while
keeping in view the overall return and the total expense ratio limit of the Fund as defined under the NBFC Regulations,
2008 at the rate of 0.4% of average annual net assets of the Fund from July 1, 2020 to March 9, 2021 and at 1% from
March 10, 2021 to June 30, 2021 (2020: 0.4%).
Note 2021 2020

9 PAYABLE TO CENTRAL DEPOSITORY COMPANY OF ----------------Rupees in '000----------------
PAKISTAN LIMITED - TRUSTEE
Trustee fee payable 9.1 2,933 2,079

Sindh Sales Tax payable on trustee fee 9.2 381 270
3,314 2,349
9.1 The Trustee is entitled to monthly remuneration for services rendered to the Fund under the provisions of the trust
deed as follows:
Net Assets (Rs.) Fee

up to Rs 1,000 million Rs 0.7 million or 0.2% per annum of net assets, whichever is higher.
from Rs 1,000 million and above Rs 2.0 million plus 0.10% per annum of net assets exceeding Rs 1,000 million.
9.2 During the year, an amount of Rs 4.161 million (2020: Rs. 3.396 million) was charged on account of sales tax on
remuneration of the Trustee levied through the Sindh Sales Tax on Services Act, 2011 and an amount of Rs 4.050
million (2020: Rs 3.423 million) was paid to the Trustee which acts as a collecting agent.
10 PAYABLE TO THE SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN
In accordance with the NBFC Regulations, 2008, a collective investment scheme classified as an Equity Scheme is
required to pay annual fee to the Securities and Exchange Commission of Pakistan at the rate of 0.02% (2020: 0.02%)
per annum of average annual net assets of the Fund.
Note 2021 2020

11 ACCRUED EXPENSES AND OTHER LIABILITIES ----------------Rupees in '000----------------
Auditors' remuneration payable 480 480

Printing charges payable 483 483
Shariah advisor fee payable 1,650 2,041
Charity payable 11.1 50,956 34,497
Brokerage payable 10,787 17,024
Withholding tax payable - 922
Capital gain tax payable 14,423 4,328
Withholding tax payable on Dividend - 142,432
Zakat payable 139 31
Provision for Federal Excise Duty and related
Sindh Sales Tax on sales load 11.3 32,607 32,607
Sindh Sales Tax on management fee 11.3 231,867 231,867
868,818 818,415
11.1 According to the instructions of the Shariah Advisor, income earned by the Fund from prohibited sources should be
donated to charitable purposes.
During the year ended June 30, 2021, non-shariah compliant income amounting to Rs 37.987 million (2020: Rs 31.482
million) was charged as an expense in the books of the Fund, and Rs. 22.500 million was disbursed to following
charitable welfare organisations respectively:
_______________________________________________Annual Report 2021 | 70

S. Amount
Charitable Organisations
No. Rupees in '000
1 Pakistan Stock Exchange Limited* 1,000
2 Afzal Memorial Thalasemia Foundation 500
3 Sindh Institute of Urology & Transplantation (SIUT) 3,000
4 The Indus Hospital 2,000
5 Alamgir Welfare Trust 1,500
6 Childlife Foundation 4,000
7 Baitus Salam Welfare Trust 1,500
8 Ihsan Trust (a related party) 5,000
9 Layton Rahmatulla Benevolent Trust 1,000
10 Cancer Foundation 1,000
11 Baitus Salam Welfare Trust 1,000
12 Alamgir Welfare Trust 1,000
22,500
* This pertains to donation made to PSX for support of terrorist attack victims and their families.
11.2 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 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, was required 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 and their CISs 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 had taken up the matter with the Sindh Finance
Ministry to have CISs / mutual funds excluded from the applicability of SWWF. In view of the above developments
regarding the applicability of SWWF on CISs/mutual funds, MUFAP recommended that, as a matter of abundant
caution, provision in respect of SWWF should be made with effect from the date of enactment of the SWWF Act, 2014
(i.e. starting from May 21, 2015).
Had the provision for SWWF not been recorded in the financial statements of the Fund for the period from May 21,
2015 to June 30, 2021, the net asset value of the Fund as at June 30, 2021 would have been higher by Re. 0.97 per
unit (2020: Re 0.68 per unit).
11.3 The Finance Act, 2013 enlarged the scope of Federal Excise Duty (FED) on financial services to include Asset
Management Companies (AMCs) as a result of which FED at the rate of 16% on the remuneration of the Management
Company and sales load was applicable with effect from June 13, 2013. The Management Company was of the view
that since the remuneration was already subject to provincial sales tax, further levy of FED would result in double
taxation which did not appear to be the spirit of the law. Hence, on September 4, 2013 a constitutional petition was
filed with the Sindh High Court (SHC) by the Management Company together with various other asset management
companies challenging the levy of FED.
With effect from July 01, 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, 2016.
During the year ended June 30, 2017, the SHC passed an order whereby all notices, proceedings taken or pending,
orders made, duty recovered or actions taken 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.
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 July 01, 2016. However, as a matter of abundant caution the provision for FED
made for the period from June 13, 2013 till June 30, 2016 amounting to Rs 264.474 million is being retained in the
financial statements of the Fund as the matter is pending before the Supreme Court of Pakistan. Had the provision for
FED not been made, the Net Asset Value of the Fund as at June 30, 2021 would have been higher by Re 0.49 (2020:
Re 0.51) per unit.
12 CONTINGENCIES AND COMMITMENTS
There were no contingencies and commitments outstanding as at June 30, 2021 and June 30, 2020.
_______________________________________________Annual Report 2021 | 71

2021 2020
13 AUDITORS' REMUNERATION ----------------Rupees in '000----------------
Annual audit fee 533 533

Half yearly review fee 150 150
Out of pocket expenses 38 38
721 721
14 TOTAL EXPENSE RATIO
The Total Expense Ratio (TER) of the Fund as at June 30, 2021 is 3.99% (2020: 3.24%) which includes 0.87% (2020:
0.36%) representing government levies on the Fund such as provision for Sindh Workers' Welfare Fund, Sales Taxes,
Federal Excise Duties, annual fee to the SECP etc. This ratio is within the maximum limit of 4.5% prescribed under the
NBFC Regulations for a collective investment scheme categorised as an Equity Scheme.
15 TAXATION
Tax Ordinance, 2001 subject to the condition that not less than 90% of the accounting income for the year as reduced
by capital gains, whether realised or unrealised, is distributed amongst the unit holders as cash dividend. Furthermore,
as per Regulation 63 of the Non-Banking Finance Companies and Notified Entities Regulations, the Fund is required to
distribute not less than 90% of its accounting income for the year derived from sources other than capital gains as
reduced by such expenses as are chargeable thereon to the unit holders. Since the management has distributed the
required minimum percentage of income earned by the Fund for the year ended June 30, 2021 to the unitholders in the
manner as explained above, no provision for taxation has been made in these financial statements during the year.
The Fund is also exempt from the provisions of Section 113 (minimum tax) under clause 11A of Part IV of the Second
applicable on funds as per Section 4B of the Income Tax Ordinance, 2001.
16 TRANSACTIONS WITH RELATED PARTIES / CONNECTED PERSONS
16.1 Connected persons include Al Meezan Investment Management Limited being the Management Company, the Central
Depository Company of Pakistan Limited being the Trustee, other collective investment schemes managed by the
Management Company, any entity in which the Management Company, its CISs or their connected persons have
material interest, any person or company beneficially owning directly or indirectly ten percent or more of the capital of
the Management Company or the net assets of the Fund, directors and their close family members and key
management personnel of the Management Company.
16.2 Transactions with connected persons essentially comprise sale and redemption of units, fee on account of managing
the affairs of the Fund, sales load, other charges and distribution payments to connected persons. The transactions
with connected persons are in the normal course of business, at contracted rates and at terms determined in
accordance with market rates.
16.3 Remuneration to the Management Company of the Fund is determined in accordance with the provisions of the NBFC
Regulations, and the Trust Deed.
16.4 Remuneration to the Trustee of the Fund is determined in accordance with the provisions of the Trust Deed.
16.5 The details of transactions carried out by the Fund with connected persons during the year and balances with them as
at year end are as follows:
Balances 2021 2020

----------------Rupees in '000----------------
Al Meezan Investment Management Limited (Management Company)
Management fee payable 3,738 5,286
Sindh Sales Tax on management fee payable 486 687
Sales load payable 2,720 685
Sindh Sales Tax and on sales load payable 354 89
Allocated expenses payable 3,124 2,016
Selling and marketing expense payable 82,065 23,914
Investment of 2,005,066 units (2020: 4,997,648 units) 127,073 233,745
Central Depository Company of Pakistan Limited - Trustee

Security deposits 100 100
Trustee fee payable 2,933 2,079
Sindh Sales Tax on trustee fee payable 381 270
_______________________________________________Annual Report 2021 | 72

2021 2020
----------------Rupees in '000----------------
Meezan Bank Limited
Balance with bank 162,187 282,156
Profit receivable on saving accounts 125 87
Sales load payable 916 579
Shariah advisor fee payable 1,650 2,041
Investment in 14,130,816 shares (2020: 12,075,097 shares) 1,630,837 831,370
Al Meezan Investment Management Limited - Employees' Gratuity Fund

Investment of 189,837 units (2020: 189,837 units) 12,031 8,879
Meezan Financial Planning Fund of Funds - Aggressive Allocation Plan

Meezan Financial Planning Fund of Funds - Moderate Allocation Plan

Meezan Financial Planning Fund of Funds - Conservative Allocation Plan

Meezan Financial Planning Fund of Funds - MAAP - I

Investment of nil units (2020: 1,984,595 units) - 92,821
Meezan Strategic Allocation Fund - MSAP - I

Meezan Strategic Allocation Fund - MSAP - II

Meezan Strategic Allocation Fund - MSAP - III

Meezan Strategic Allocation Fund - MSAP - IV

Investment of 22,509 units (2020: 7,145,017 units) 1,427 334,180
Meezan Strategic Allocation Fund - MSAP - V

Directors and executives of the Management Company

Transactions during the year For the year ended June 30,
2021 2020
----------------Rupees in '000----------------
Al Meezan Investment Management Limited - Management Company
Management Company 620,088 502,387
Sindh Sales Tax on remuneration of the Management Company 80,611 65,310
Allocated expenses 32,024 25,119
Selling and marketing expenses 185,182 100,477
Issuance of 12,337,696 units (2020: 14,200,125 units) 718,363 701,346
Redemption of 15,330,278 units (2020: 19,214,207 units) 892,796 896,576
Dividend Paid - 11,950
_______________________________________________Annual Report 2021 | 73

For the year ended June 30,
2021 2020
----------------Rupees in '000----------------
Remuneration of Central Depository Company of Pakistan Limited - Trustee 32,004 26,119
Sindh Sales Tax on remuneration of the Trustee 4,161 3,396
CDS charges 1,422 922
Meezan Bank Limited

Profit on saving accounts 1,277 25,669
Dividend paid - 31,188
Bonus issue of 1,258,209 shares (2020: nil shares) - -
Purchase of 2,362,000 shares (2020: 7,808,500 shares) 206,019 529,166
Sale of 1,564,490 shares (2020: 3,774,000 shares) 161,653 261,402
Shariah advisor fee 2,582 2,774
Dividend income 113,540 35,993
Al Meezan Investment Management Limited - Employees' Gratuity Fund

Units issued: nil units (2020: 9,649 units) - 450
Dividend Paid - 450
Meezan Financial Planning Fund of Funds - Aggressive Allocation Plan

Units issued: 4,403,476 units (2020: 5,970,312 units) 283,230 288,357
Units redeemed: 5,115,273 units (2020: 6,842,745 units) 320,608 332,203
Meezan Financial Planning Fund of Funds - Moderate Allocation Plan

Meezan Financial Planning Fund of Funds - Conservative Allocation Plan


Meezan Strategic Allocation Fund - MSAP - I

Meezan Strategic Allocation Fund - MSAP - II

Meezan Strategic Allocation Fund - MSAP - III

Meezan Strategic Allocation Fund - MSAP - IV

Units issued: 790,609 units (2020: 9,640,173 units) 45,252 488,550
_______________________________________________Annual Report 2021 | 74

2021 2020
----------------Rupees in '000----------------
Meezan Strategic Allocation Fund - MSAP - V

Units redeemed: 4,304,700 units (2020: 432,520 units) 243,251 20,219
16.6 Other balances due to / from related parties / connected persons are included in the respective notes to the financial
statements.
17 FINANCIAL INSTRUMENTS BY CATEGORY

----------------------------------------- 2021 ------------------------------------------
At fair value
At amortised
through profit Total
cost
or loss
Financial assets ----------------------------- Rupees in '000 -----------------------------
Balances with banks 2,061,391 - 2,061,391

Investments - 32,886,340 32,886,340
Receivable against sale of investments 34,569 - 34,569
Receivable against conversion of units 145,285 - 145,285
Dividend receivable 84,683 - 84,683
Deposits and other receivables 189,717 - 189,717
2,515,645 32,886,340 35,401,985
-------------------- 2021 --------------------

At fair value
At amortised
cost
or loss
Financial liabilities -------------------- Rupees in '000 --------------------
Payable to Al Meezan Investment Management Limited
- Management Company - 92,487 92,487
Payable to Central Depository Company of Pakistan Limited - Trustee - 3,314 3,314
Payable against redemption and conversion of units - 85,604 85,604
Payable against purchase of investments - 70,503 70,503
Payable to Meezan Bank Limited - 1,035 1,035
Accrued expenses and other liabilities - 64,356 64,356
- 317,299 317,299
------------------------------- 2020 --------------------------------

At fair value
At amortised
cost
or loss
Financial assets -------------------------- Rupees in '000 --------------------------
Balances with banks 1,755,340 - 1,755,340

Investments - 23,381,047 23,381,047
1,977,718 23,381,047 25,358,765
_______________________________________________Annual Report 2021 | 75

-------------------- 2020 --------------------
At fair value
At amortised
cost
or loss
Financial liabilities ------------------- Rupees in '000 -------------------
Payable to Central Depository Company of Pakistan Limited - Trustee - 2,349 2,349
Dividend payable - 152,480 152,480
- 517,666 517,666
18 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, the constitutive documents of the Fund 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 the Fund is willing to accept. The Board of Directors of the Management Company
supervises the overall risk management approach within the Fund. The Fund is exposed to market risk, liquidity risk
and credit risk arising from the financial instruments it holds.
Risks managed and measured by the Fund are explained below:
18.1 Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate as a result of
changes in market prices.
The Management Company manages the market risk through diversification of the investment portfolio and by
following the internal guidelines established by the Investment Committee.
Market risk comprises of three types of risks: yield / interest rate risk, currency risk and price risk.
(i) Profit rate risk
Profit rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate as a result
of changes in market interest rates. As of June 30, 2021, the Fund is exposed to such risk on its balances held
with banks. The Investment Committee of the Fund reviews the portfolio of the Fund on a regular basis to ensure
that the risk is managed within the acceptable limits.
a) Sensitivity analysis for variable rate instruments
The Fund's profit rate risk arises from the balances in savings accounts. At June 30, 2021, if there had been
increase / decrease of 100 basis points in interest rates or in rates with all other variables held constant, net
assets of the Fund for the year then ended would have been higher / lower by Rs 20.506 million (2020: Rs
17.473 million).
b) Sensitivity analysis for fixed rate instruments
As at June 30, 2021, the Fund does not hold any fixed rate instrument that may expose the Fund to fixed interest
rate risk.
The composition of the Fund's investment portfolio and profit rates are expected to change over time. Accordingly, the
sensitivity analysis prepared as of June 30, 2021 is not necessarily indicative of the impact on the Fund's net assets of
future movements in interest rates.
Profit rate sensitivity position for on-balance sheet financial instruments is based on the earlier of contractual repricing
or maturity date and for off-balance sheet instruments is based on the settlement date.
_______________________________________________Annual Report 2021 | 76

The Fund's interest rate sensitivity related to financial assets and financial liabilities as at June 30, 2021 can be
determined as follows:
------------------------------------------------------------ 2021 ------------------------------------------------------------

Exposed to yield / interest rate risk
Not exposed
Effective More than
to yield /
interest rate Up to three three months More than Total
interest rate
(%) months and up to one one year
risk
year
----------------------------------- Rupees in '000 -----------------------------------
Financial assets
Balances w ith banks 1.50% - 7.32% 2,050,598 - - 10,793 2,061,391
Investments - - - 32,886,340 32,886,340
Receivable against sale of investments - - - 34,569 34,569
Receivable against conversion of units - - - 145,285 145,285
Dividend receivable - - - 84,683 84,683
Deposits and other receivables - - - 189,717 189,717
2,050,598 - - 33,351,387 35,401,985
Financial liabilities
- Management Company - - - 92,487 92,487
Payable to Central Depository Company of
Pakistan Limited - Trustee - - - 3,314 3,314
Payable against redemption and conversion of units - - - 85,604 85,604
Payable against purchase of investments - - - 70,503 70,503
Payable to Meezan Bank Limited - - - 1,035 1,035
Accrued expenses and other liabilities - - - 64,356 64,356
- - - 317,299 317,299
On-balance sheet gap (a) 2,050,598 - - 33,034,088 35,084,686
Off-balance sheet financial instrum ents - - - - -
Off-balance sheet gap (b) - - - - -
Total interest rate sensitivity gap (a+b) 2,050,598 - -
Cum ulative interest rate sensitivity gap 2,050,598 2,050,598 2,050,598
------------------------------------------------------------ 2020 ------------------------------------------------------------

Exposed to yield / interest rate risk
Not exposed
Effective More than
to yield /
interest rate Up to three three months More than Total
interest rate
(%) months and up to one one year
risk
year
----------------------------------- Rupees in '000 -----------------------------------
Financial assets
Balances w ith banks 1.50% - 7.50% 1,747,297 - - 8,043 1,755,340
Investments - - - 23,381,047 23,381,047
1,747,297 - - 23,611,468 25,358,765
Pakistan Limited - Trustee - - - 2,349 2,349
Payable against redemption and conversion of units - - - 116,155 116,155
Dividend Payable - - - 152,480 152,480
Payable to Meezan Bank Limited - - - 654 654
- - - 517,666 517,666
On-balance sheet gap (a) 1,747,297 - - 23,093,802 24,841,099
Total interest rate sensitivity gap (a+b) 1,747,297 - -
Cum ulative interest rate sensitivity gap 1,747,297 1,747,297 1,747,297
_______________________________________________Annual Report 2021 | 77

(ii) Currency risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate as a result 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) Price risk
Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices (other than those arising from interest rate risk or currency risk) whether those changes
are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar
financial instruments traded in the market.
The Fund is exposed to equity price risk on investments held by the Fund and classified as 'at fair value through
profit or loss'. To manage its price risk arising from investments in equity securities, the Fund diversifies its
portfolio within the eligible stocks prescribed in the Trust Deed. The NBFC Regulations also limit individual equity
securities to no more than 15% of net assets and issued capital of the investee company and sector exposure
limit to 35% of the net assets.
In case of 1% increase / decrease in KMI 30 index on June 30, 2021, with all other variables held constant, the
total income of the Fund for the year would increase / decrease by Rs 328.863 million (2020: Rs. 233.810 million)
and the net assets of the Fund would increase / decrease by the same amount as a result of gains / losses on
equity securities classified as financial assets at fair value through profit or loss.
The analysis is based on the assumption that equity index had increased / decreased by 1% with all other
variables held constant and all the Fund's equity instruments moved according to the historical correlation with
the index. This represents management's best estimate of a reasonable possible shift in the KMI 30 Index,
having regard to the historical volatility of the index. The composition of the Fund's investment portfolio and the
correlation thereof to the KMI 30 Index, is expected to change over time. Accordingly, the sensitivity analysis
prepared as of June 30, 2021 is not necessarily indicative of the effect on the Fund's net assets of future
movements in the level of the KMI 30 Index.
18.2 Liquidity risk
Liquidity risk is the risk that the Fund may not be able to generate sufficient cash resources to settle its obligation in full
as they fall due or can only do so on terms that are materially disadvantageous to the Fund.
The Fund is exposed to daily settlement of equity securities and daily redemptions at the option of unit holders. The
Fund's approach to managing liquidity is to ensure, as far as possible, that the Fund will always have sufficient liquidity
to meet its liabilities when due under both normal and stressed conditions. The Fund's policy is, therefore, to invest the
majority of its assets in investments that are traded in an active market and can be readily disposed and are
considered readily realisable.
As per the NBFC Regulations, the Fund can borrow in the short-term to ensure settlement. The maximum limit of
which is fifteen percent of the net assets upto 90 days and would be secured by the assets of the Fund.
In order to manage the Fund's overall liquidity, the Fund may also withhold daily redemption requests in excess of ten
percent of the units in issue and such requests would be treated as redemption requests qualifying for being
processed on the next business day. Such procedure would continue until the outstanding redemption requests come
down to a level below ten percent of the units then in issue. The Fund did not withhold any redemptions during the
year.
The table below summaries the maturity profile of the Fund's financial instruments. The analysis into relevant maturity
groupings is based on the remaining period at the end of the reporting period to the contractual maturity dates.
However, the assets and liabilities that are receivable / payable on demand including bank balances have been
included in the maturity grouping of one month:
_______________________________________________Annual Report 2021 | 78

-------------------------------------------------------------------------------- 2021 --------------------------------------------------------------------------------
More than More than
More than Financial
one month three
Within 1 one year and More than 5 instruments
and upto months and Total
month upto five years with no fixed
three upto one
years maturity
months year
--------------------------------------------------------------------------------- Rupees in '000 ---------------------------------------------------------------------------------
Financial assets
Balances w ith banks 2,061,391 - - - - - 2,061,391
Investments - - - - - 32,886,340 32,886,340
Receivable against sale of investments 34,569 - - - - - 34,569
Receivable against conversion of units 145,285 - - - - - 145,285
Dividend receivable 84,683 - - - - - 84,683
Deposits and other receivables 187,117 - - - - 2,600 189,717
2,513,045 - - - - 32,888,940 35,401,985
Payable to Al Meezan Investment
Management Limited - Management Company 92,487 - - - - - 92,487
Payable to Central Depository Company
of Pakistan Limited - Trustee 3,314 - - - - - 3,314
Payable against redemption and conversion
of units 85,604 - - - - - 85,604
Payable against purchase of investments 70,503 - - - - - 70,503
Payable to Meezan Bank Limited 1,035 - - - - - 1,035
Accrued expenses and other liabilities - 13,400 50,956 - - - 64,356
252,943 13,400 50,956 - - - 317,299
Net assets / (liabilities) 2,260,102 (13,400) (50,956) - - 32,888,940 35,084,686
-------------------------------------------------------------------------------- 2020 --------------------------------------------------------------------------------
More than one More than Financial

More than one
Within 1 month and three months More than 5 instruments
y ear and upto Total
month upto three and upto one y ears w ith no fix ed
fiv e y ears
months y ear maturity
--------------------------------------------------------------------------------- Rupees in '000 ---------------------------------------------------------------------------------

Financial assets
Balances w ith banks 1,755,340 - - - - - 1,755,340
Investments - - - - - 23,381,047 23,381,047
Deposits and other receivables 10,819 - - - - 2,600 13,419
1,975,118 - - - - 23,383,647 25,358,765
Payable to Al Meezan Investment
Management Limited - Management Company 32,677 - - - - - 32,677
Payable to Central Depository Company
of Pakistan Limited - Trustee 2,349 - - - - - 2,349
Payable against redemption and conversion
of units 116,155 - - - - - 116,155
Dividend payable 152,480 - - - - - 152,480
Payable to Meezan Bank Limited 654 - - - - - 654
463,141 19,545 34,980 - - - 517,666
Net assets / (liabilities) 1,511,977 (34,980) - - 23,383,647 24,841,099
_______________________________________________Annual Report 2021 | 79

463,141 19,545 34,980 - - - 517,666
Net assets / (liabilities) 1,511,977 (34,980) - - 23,383,647 24,841,099
18.3 Credit risk
18.3.1 Credit risk is the risk that the counterparty to a financial instrument will cause a financial loss to the Fund by failing to
discharge its obligation as it falls due. The table below analyses the Fund's maximum exposure to credit risk:
2021 2020
Balance as per Balance as per
Maximum Maximum
statement of statement of
exposure to exposure to
assets and assets and
credit risk credit risk
liabilities liabilities
--------------------------------------- Rupees in '000 ---------------------------------------
Balances with banks 2,061,391 2,061,391 1,755,340 1,755,340

Investments 32,886,340 - 23,381,047 -
Receivable against sale of investments 34,569 34,569 73,789 73,789
Receivable against conversion of units 145,285 145,285 82,856 82,856
Dividend receivable 84,683 84,683 52,314 52,314
Deposits and other receivables 189,717 - 13,419 -
35,401,985 2,325,928 25,358,765 1,964,299
The maximum exposure to credit risk before any credit enhancement as at June 30, 2021 is the carrying amount of the
financial assets. Difference in the balance as per the statement of assets and liabilities and maximum exposure is due
to the fact that investments in equity securities of Rs 32,866.340 million (2020: 23,381.047 million) is not exposed to
credit risk.
There is a possibility of default by participants or failure of the financial market / stock exchanges, the depositories, the
settlements or clearing systems, etc. Settlement risk on equity securities is considered minimal because of inherent
controls established in the settlement process. The Fund's policy is to enter into financial contracts in accordance with
internal risk management policies and instruments guidelines approved by the Investment Committee.
18.3.2 Credit quality of financial assets
The Fund's significant credit risk (excluding credit risk relating to settlement of equity securities) arises mainly on
account of its placements in banks and mark-up accrued thereon, dividend receivable and receivable against sale of
units and against investments. The credit rating profile of balances with banks is as follows:
% of financial assets
Rating exposed to credit risk
2021 2020
AAA 17.40 61.50

AA+ 6.53 27.00
AA 8.11 0.04
A+ 67.96 11.45
A 0.01 0.01
100.00 100.00
18.3.3 Concentration of credit risk
Concentration of credit risk exists when changes in economic or industry factors similarly affect groups of
counterparties whose aggregate credit exposure is significant in relation to the Fund's total credit exposure. The Funds
portfolio of financial assets is mainly held with credit worthy counterparties thereby mitigating any credit risk.
19 FAIR VALUE MEASUREMENT
Fair value is 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. 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 tradable in an open market are revalued at the market prices prevailing on the statement of
assets and liabilities date. The estimated fair value of all other financial assets and liabilities is considered not to be
significantly different from the respective book values.
_______________________________________________Annual Report 2021 | 80

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: quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: 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); and
Level 3: inputs for the asset or liability that are not based on observable market data (i.e. unobservable inputs).
As at June 30, 2021 the Fund held the following financial instruments measured at fair values:
------------------------- 2021 -------------------------

Level 1 Level 2 Level 3
--------------------------------------------------------- Rupees in '000 --------------------------------------
Financial assets
Investments - at fair value through profit or loss 32,886,340 - -
------------------------- 2020 -------------------------

--------------------------------------------------------- Rupees in '000 --------------------------------------
Financial assets
Investments - at fair value through profit or loss 23,381,047 - -
20 UNIT HOLDERS' FUND RISK MANAGEMENT
The unit holders' fund is represented by redeemable units. These units are entitled to dividends and to payment of a
proportionate share based on the Fund's Net Asset Value per unit on the redemption date. The relevant movements
are shown on the 'Statement of Movement in Unit Holders' Fund'.
The Fund has no restriction on the subscription and redemption of units. As required under the NBFC Regulations,
every open end scheme shall maintain fund size (i.e. net assets of the Fund) of Rs 100 million at all times during the
life of the scheme. The Fund has historically maintained and complied with the requirement of minimum fund size at all
times.
The Fund's objectives when managing unit holders' funds are to safeguard its ability to continue as a going concern so
that it can continue to provide returns to the unit holders and to maintain a strong base of assets to meet unexpected
losses or opportunities.
In accordance with the risk management policies as stated in note 18, the Fund endeavours to invest the subscriptions
received in appropriate investment avenues while maintaining sufficient liquidity to meet redemptions, such liquidity
being augmented by disposal of investments or short-term borrowings, where necessary.
21 UNIT HOLDING PATTERN OF THE FUND
------------------------- 2021 ------------------------- ------------------------- 2020 -------------------------

Investment Investment
Number of amount Percentage Number of amount Percentage
Category
unit holders (Rupees in of total unit holders (Rupees in of total
'000) '000)
Individuals 25,097 20,004,540 58.37 23,848 12,641,223 52.51

Associated Companies / 16 2,446,388 10.16
Directors 18 2,535,195 7.40
Insurance Companies 4 1,196,525 3.49 5 924,307 3.84
Banks and DFIs 2 158,781 0.46 4 700,668 2.91
Retirement Funds 117 5,498,504 16.04 128 4,326,278 17.97
Public Limited Companies 3 286,798 0.84 2 211,626 0.88
Others 134 4,593,680 13.40 127 2,821,695 11.72
25,375 34,274,023 100.00% 24,130 24,072,185 100.00%
_______________________________________________Annual Report 2021 | 81

22 LIST OF TOP TEN BROKERS BY PERCENTAGE OF COMMISSION PAID
--------------------- 2021 --------------------- --------------------- 2020 ---------------------

Percentage of Percentage of
Name of broker Name of broker
commission paid commission paid
AKD Securities Limited 9% JS Global Capital Limited 13%

JS Global Capital Limited 8% AKD Securities Limited 8%
Top Line Securities (Private) Limited 7% Top Line Securities (Private) Limited 7%
BMA Capital Management Limited 7% Fortune Securities Limited 7%
Arif Habib Limited 6% Foundation Securities (Private) Limited 7%
Akik Capital (Private) Limited 6% BMA Capital Management Limited 6%
Foundation Securities (Private) Limited 6% Alfalah Securities (Private) Limited 6%
Fortune Securities Limited 5% EFG Hermes 6%
Ismail Iqbal Securities (Private) Limited 5% Shajar Capital Pakistan (Private) Limited 5%
Next Capital Limited 5% Arif Habib Limited 5%
23 DETAILS OF MEMBERS OF THE INVESTMENT COMMITTEE
Following are the details in respect of members of the Investment Committee of the Fund:
Name Designation Qualification Overall experience

Mr. Mohammad Shoaib Chief Executive Officer CFA / MBA Thirty one years
Mr. Muhammad Asad Chief Investment Officer CFA level II / MBA Twenty five years
Mr. Taha Javed Head of Equity CFA / MBA Fourteen years
Mr. Ahmed Hassan SVP Investments CFA / MBA Fourteen years
Mr. Ali Khan Head of Product Development CFA / FRM / MBA Eleven years
Mr. Faizan Saleem Head of Fixed Income CFA level II / MBA Fourteen years
Mr. Asif Imtiaz AVP Investments CFA / MBA - Finance Thirteen years
Mr. Akhtar Munir Head of Risk Management CFA Level II / MBA, ACCA, Twelve years
FRM, FCMA
Mr. Ali Asghar Head of Research CFA / MBA (in progress) Ten years
23.1 The Fund manager of the Fund is Mr. Muhammad Asad. The Fund Manager is not managing any other fund.
24 MEETINGS OF BOARD OF DIRECTORS OF THE MANAGEMENT COMPANY
The dates of the meetings of the Board of Directors of the Management Company of the Fund and the attendance of
its members are given below:
Meeting held on
Name of Directors Designation August 13, September October February April 12, June 21,
2020 17, 2020 21, 2020 15, 2021 2021 2021
Mr. Ariful Islam Chairman Yes Yes Yes Yes Yes Yes
Mr. Mohammad Shoaib, CFA Chief Executive Officer Yes Yes Yes Yes Yes Yes
Mr. Muhammad Abdullah Director Yes Yes Yes Yes Yes Yes
Mr. Ijaz Farooq Director Yes No No - - -
Mr. Moin M. Fudda Director Yes Yes Yes Yes Yes Yes
(Appointed in place of Mr Ijaz Farooq as nominee
director of Meezan Bank Limited)*
Ms. Saima Shaukat Khan (Kamila) Director Yes Yes Yes - - -
Mr. Furquan Kidw ai Director Yes Yes Yes Yes Yes Yes
Mr. Arshad Majeed Director Yes Yes No - - -
Mr. Naeem Abdul Sattar Director Yes Yes Yes Yes Yes Yes
Syed Amir Ali Zaidi Director Yes Yes Yes - - -
Mr. Mubashar Maqbool Director - - - Yes Yes Yes
(Appointed in place of Syed Amir Ali Zaidi)*
Mr. Tariq Mairaj Director - - - Yes Yes Yes
(Appointed in place of Mr. Arshad Majeed)*
Mr. Feroz Rizvi Director - - - Yes Yes Yes
(Appointed in place of Mr. Moin M Fudda w ho
continued as nominee director of MBL)*
Ms. Danish Zuberi Director - - - Yes Yes Yes
(Appointed in place of Ms. Saima Shaukat Khan)*
* The effective date of start of tenure of new board, after re-election is December 31, 2020
_______________________________________________Annual Report 2021 | 82

Aug 9, 2021 Sep 14, 2021
_______________________________________________Annual Report 2021 | 83

AL MEEZAN
MUTUAL FUND (AMMF)
Al Meezan Mutual Fund aims to optimize the
total investment returns in the form of
capital gains and dividend income, through
prudent investment management.
RISING ECONOMY
WITH A
GROWTH
RATE OF
May 2021
Source: Security And Exchange Commission Of
Pakistan (SECP) & World Bank
FUND INFORMATION
MANAGEMENT COMPANY
Phone (+9221) 35630722-6, 111-MEEZAN
Fax: (+9221) 35676143, 35630808


Syed Owais Wasti
AUDIT COMMITTEE

TRUSTEE
AUDITORS
SHARIAH ADVISER
Meezan Bank Limited
BANKERS TO THE FUND

Allied Bank Limited Habib Metropolitan Bank Limited - Islamic Banking
Al Baraka Islamic Bank B.S.C (E.C) MCB Islamic Bank Limited
Askari Bank Limited - Islamic Banking Meezan Bank Limited
Bank Alfalah Limited National Bank of Pakistan - Islamic Banking
Bank Islami Pakistan Limited Sindh Bank Limited
Dubai Islamic Bank Pakistan Limited UBL Ameen - Islamic Banking
Faysal Bank Limited - Islamic Banking
LEGAL ADVISER
Bawaney & Partners
3rd & 4th Floor, 68-C, Lane-13, Bokhari Commercial
Area, Phase VI, DHA, Karachi.
Phone (+9221) 35156191-94 Fax: (+9221) 35156195
TRANSFER AGENT
Ground Floor, Block "B", Finance & Trade Centre, Shahrah-e-Faisal Karachi 74400,
Pakistan. Phone (+9221) 35630722-6, 111-MEEZAN
Fax: (+9221) 35676143, 35630808
DISTRIBUTORS
Meezan Bank Limited
Al Meezan Mutual Fund (AMMF)
Type of Fund
Open end equity fund
Objective
The objective of AMMF is to provide maximum total return to the shareholders by investing in “Shariah
compliant” equity avenues for the given level of risk, while abiding by the Regulations and any other
prevailing rules and regulations.
The performance of AMMF is directly linked to the performance of the equity market. The fund manager,
Al Meezan Investment Management Limited, actively manages the fund with an aim to provide maximum
risk adjusted total return to the investors. To control risk, the exposure in growth stocks is balanced
against that of high dividend stocks. Moreover, the fund manager strives to reduce equity exposure in
times when the market is trading above valuations while increasing equity exposure near troughs.
AMMF started the year with a 96.68% exposure to equities, touched a maximum of 98.25% and minimum
of around 93.85% during the fiscal year, on average remaining around 95.81% invested and while
closing the year at 94.56% invested percentage. The fund raised exposure to the Cement sector
significantly during the period under review owing to rebound in economic activity, Exposure to the Oil
and Gas Exploration sector was trimmed in line with the theme to move towards sectors benefiting from
rising economic activity in the country. As a result, there was also a general trend in liquidating from
defensive plays such as Power Generation, Fertilizer and OMCs in addition to Oil Exploration Sector.
Jun-21
40%
Jun-20
32.2%
30.6%
30%
19.9%
20% 17.3%
15.0%
13.3%
8.8% 10.6%
10% 7.5% 7.4%
5.6% 5.3%
4.1% 4.0% 4.3% 4.0% 3.8%
3.1%
1.7% 1.6%
0%
Chemical
Pharmaceutical
Fertilizer
Cement
Cash and others

Power Generation &
Paper & Board

Oil & Gas Marketing

Distribution
Companies
Companies
Top Holdings
Lucky Cement Ltd. 9.60%
Mari Petroleum Ltd. 8.58%
Engro Corporation 5.65%
Meezan Bank Limited 4.86%
Pakistan Petroleum Ltd. 4.71%
Oil & Gas Development Co Ltd 4.37%
Pakistan State Oil Co. Ltd. 3.98%
Systems Limited 3.51%
The Hub Power Co. Ltd. 2.82%
Kohat Cement Company Ltd 2.64%
Performance Review
During FY21, Al Meezan Mutual Fund (AMMF) provided a positive return of 33.54% to its investors and the
KSE Meezan Index (KMI 30) appreciated by 41.58% to close at 76,622 pts.
AMMF KMI-30
(NAV) (Index Points)
Net Asset Value (NAV) as on June 30, 2020- Rs. 13.32 54,995
Net Asset Value (NAV) as on June 30, 2021- Rs. 17.65 76,622
AMMF posted a total Income of Rs. 1,434 million in the fiscal year 2021 as compared to a total income of
Rs. 254 million last year. Total income comprised of realized gain and unrealized gain on investments of
Rs. 405 million and Rs. 801 million respectively. Dividend income contributed Rs. 211 million to income,
while profit on saving accounts with banks amounted to Rs. 17 million. After accounting for expenses of
Rs. 190 million, the Fund posted a net income of Rs. 1,244 million. The net assets of the Fund as at June
30, 2021 were Rs. 4,918 million as compared to Rs. 3,913 million last year depicting an increase of
26%. The net asset value per unit as at June 30, 2021 was Rs. 17.6466 as compared to Rs. 13.3176 per
unit as on June 30, 2020.
150
AMMF Benchmark
140
130
120
110
100
90
Jul-…
Se…
Fe…
Au…
Ma…
Ap…
Jun…
Ma…
No…
Jan…
De…
Oc…
Charity Statement
out of the income of the Trust to charitable / welfare organizations, in consultation with Shariah Advisor,
representing income that is Haram. During the year ended June 30, 2021 an amount of Rs. 5.7 million was
Distributions
There is NIL distribution by the Fund during the fiscal year ended June 30, 2021
(As on June 30, 2021)

Range (Units) No. of investors
1 - 9,999 3,385
10,000 - 49,999 678
50,000 - 99,999 179
100,000 - 499,999 170
500,000 and above 51
Total 4,463

Number 3 3 0 0
PERFORMANCE TABLE
2021 2020 2019

Net assets (Rs. in '000) (ex-distribution) 4,917,841 3,913,337 4,767,806
Net assets value / redemption price per 17.6466 13.3176 13.3539
unit as at June 30 (Rs.) (ex-distribution)
Offer price per unit as at June 30 (Rs.) 18.0454 13.6185 13.6557
(ex-distribution)
Distribution (%)
- Annual N/A N/A N/A
- Interim N/A 4.50 N/A
Dates of distribution N/A June 30, 2020 N/A
Income distribution (Rupees in '000) N/A 128,690 N/A
Growth distribution (Rupees in '000) N/A N/A N/A
Total return (%) 33% 3% -24%
One year Two year Three year

Average annual return (%) as
at June 30, 2021 33% 18% 4%
Past performance is not necessarily indicative of future performance and unit prices and investment returns may
go down, as well as up.
AL MEEZAN MUTUAL FUND
AS AT JUNE 30, 2021
Note 2021 2020

(Rupees in '000)
Assets
Balances with banks 5 296,501 259,646
Investments 6 4,650,421 3,782,362
Advance, deposits and other receivable 7 71,219 3,025
Total assets 5,089,108 4,092,547
Liabilities
Payable to Central Depository Company of Pakistan Limited - Trustee 9 557 455
Payable to the Securities and Exchange Commission of Pakistan (SECP) 10 937 853
Payable against purchase of investments - 9,988
Payable against conversion and redemption of units 16,040 23,718
Dividend payable 4,917 19,572
Total liabilities 171,267 179,210
NET ASSETS 4,917,841 3,913,337
(Rupees)

_____________________ _____________________ _____________________

_______________________________________________Annual Report 2021 | 97

INCOME STATEMENT
Note 2021 2020

(Rupees in '000)
Income
Profit on saving account with banks 16,596 25,720
Realised gain on sale of investments - net 405,305 81,626
632,933 286,157
classified as 'financial assets at fair value through profit or loss' 6.2 801,276 (32,495)
Total income 1,434,209 253,662
Expenses
Remuneration of Al Meezan Investment Management Limited
- Management Company 8.1 93,684 84,366
Sindh Sales Tax on remuneration of the Trustee 9.2 739 678
Annual fee to the Securities and Exchange Commission of Pakistan 10 937 853
Fees and subscription 507 567
Bank and settlement charges 942 1,183
Provision for Sindh Workers' Welfare Fund (SWWF) 11.3 25,383 2,240
Total expenses 190,423 143,896
Taxation 15 - -

Income already paid on units redeemed (337,856) (3,575)
905,930 106,191
- Relating to capital gains 905,930 49,131
905,930 106,191

_____________________ _____________________ _____________________

_______________________________________________Annual Report 2021 | 98

2021 2020
(Rupees in '000)
Total comprehensive income for the year 1,243,786 109,766

_____________________ _____________________ _____________________

_______________________________________________Annual Report 2021 | 99

2021 2020
(Accumulated
Capital losses) / Over Capital Accumulated Over
Total Total
value Undistributed distribution value losses distribution
income
---------------------------- (Rupees in '000) ----------------------------

---------------------------- (Rupees in '000) ----------------------------
Net assets at the beginning of the year 4,045,463 (109,627) (22,499) 3,913,337 4,877,433 (109,627) - 4,767,806
Issuance of 272,540,828 units (2020: 325,182,835 units)

- Capital value (at net asset value per unit at
the beginning of the year) 3,629,590 - - 3,629,590 4,342,459 - - 4,342,459
- Element of income 897,229 - - 897,229 267,904 - - 267,904
Total proceeds on issuance of units 4,526,819 - 4,526,819 4,610,363 - 4,610,363

the beginning of the year) 3,831,503 - - 3,831,503 5,186,269 - - 5,186,269
- Element of loss 596,742 337,856 - 934,598 256,064 3,575 - 259,639
Total payments on redemption of units 4,428,245 337,856 4,766,101 5,442,333 3,575 5,445,908
Total comprehensive income for the year - 1,221,287 22,499 1,243,786 - 109,766 - 109,766
Distribution during the year - - - - - (106,191) (22,499) (128,690)
Income / (loss) for the year less distribution - 1,221,287 22,499 1,243,786 - 3,575 (22,499) (18,924)
Net assets at the end of the year 4,144,037 773,804 - 4,917,841 4,045,463 (109,627) (22,499) 3,913,337
Accumulated losses brought forward

- Realised (loss) / income (77,132) 1,197,928
- Unrealised loss (32,495) (1,307,555)
(109,627) (109,627)
Accounting income available for distribution (after

adjusting income already paid on units redeemed)
905,930 106,191
Distribution during the year - (106,191)
Adjustment of over distribution (note 1.6) (22,499) -
Undistributed income / (accumulated losses) carried forward 773,804 (109,627)
Undistributed income / (accumulated losses) carried forward

- Realised loss (27,472) (77,132)
- Unrealised income / (loss) 801,276 (32,495)
773,804 (109,627)
(Rupees) (Rupees)
Net assets value per unit at the beginning of the year 13.3176 13.3539
Net assets value per unit at the end of the year 17.6466 13.3176

_____________________ _____________________ _____________________

_______________________________________________Annual Report 2021 | 100

CASH FLOW STATEMENT
Note 2021 2020

(Rupees in '000)
Adjustments for:
classified as 'financial assets at fair value through profit or loss' (801,276) 32,495
442,510 142,261
Investments - net (66,783) 799,750
Advance, deposits and other receivable (68,194) 5,419
(143,392) 825,185
Payable to Al Meezan Investment Management Limited - Management Company 7,834 (9,546)
Payable to the Securities and Exchange Commission of Pakistan (SECP) 84 (5,099)
Payable to Meezan Bank Limited 81 (3)
Payable against purchase of investments (9,988) 6,520
14,390 169
Net cash generated from operating activities 313,508 967,615
Receipts against issuance and conversion of units 4,511,781 4,602,560

Payment against issuance and conversion of units (4,773,779) (5,467,656)
Dividend paid (14,655) (114,035)
Net cash used in financing activities (276,653) (979,131)
Net increase / (decrease) in cash and cash equivalents 36,855 (11,516)

Cash and cash equivalents at the beginning of the year 259,646 271,162
Cash and cash equivalents at the end of the year 5 296,501 259,646

_____________________ _____________________ _____________________

_______________________________________________Annual Report 2021 | 101

1.1 Al Meezan Mutual Fund (the Fund) was constituted by virtue of a scheme of arrangement for conversion of Al Meezan
Mutual Fund Limited (AMMFL) into an Open End Scheme under a Trust Deed executed between Al Meezan
Investment Management Limited as the Management Company and Central Depository Company of Pakistan Limited
(CDC) as the Trustee. The Trust Deed was executed on June 17, 2011 in accordance with the provisions of the Non-
Banking Finance Companies and Notified Entities Regulations, 2008 (the NBFC Regulations). The Management
Company has been licensed by the Securities and Exchange Commission of Pakistan (SECP) to act as an Asset
Management Company under the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (the
NBFC Rules) through a certificate of registration issued by the SECP. The registered office of the Management
Company of the Fund is situated at Ground Floor, Block 'B', Finance and Trade Centre, Shahrah-e-Faisal, Karachi
74400, Pakistan.
1.2 The Fund has been formed to provide the unit holders safe and stable stream of halal income on their investments and
to generate superior long-term risk adjusted returns. The Fund shall also keep an exposure in short-term instruments
for the purpose of maintaining liquidity and to capitalise on exceptional returns, if available, at any given point of time.
The objective of the Fund is to provide the maximum total return to the unit holders from investment in "Shariah
Compliant" equity investments for the given level of risk, while abiding by the regulations and any other prevailing rules
and regulations. At least seventy percent of its net assets shall remain invested in listed equity securities during the
year based on quarterly average investment calculated on daily basis. The remaining net assets shall be invested in
cash and near cash instruments. Under the Trust Deed, all conducts and acts of the Fund are based on Shariah.
Meezan Bank Limited (MBL) acts as its Shariah Advisor to ensure that the activities of the Fund are in compliance with
the principles of Shariah.
1.3 The Fund is an open-end fund listed on the Pakistan Stock Exchange Limited. Units of the Fund are offered for public
subscription on a continuous basis. The units are transferable and can be redeemed by surrendering them to the
Fund. The Fund is categorised as an Equity Scheme.
processes.
1.6 During the year ended June 30, 2020, the Fund had made excess distribution amounting to Rs 22.499 million which
was disclosed in the statement of movement in the Unit holders’ Fund as “over distribution”. In the current year, the
Fund had profits available for distribution in excess of the minimum threshold specified in note 15 to the financial
statements and the Fund has utilised such profits to set-off excess distribution made in the previous year.
Investment Scheme Trust Deed to Registrar (acting under Sindh Trusts Act, 2020) to fulfill the requirement for
registration of Trust Deed under Sindh Trusts Act, 2020.
The transactions undertaken by the Fund in accordance with the process prescribed under the Shariah guidelines
issued by the Shariah Advisor are accounted for on substance rather than the form prescribed by the aforementioned
guidelines. This practice is being followed to comply with the requirements of the accounting and reporting standards
as applicable in Pakistan.
- Provisions of and directives issued under the Companies Act, 2017 along with part VIIIA of the repealed
Banking Finance Companies and Notified Entities Regulations, (the NBFC Regulations) and the requirements of
the Trust Deed.
_______________________________________________Annual Report 2021 | 102

annual accounting period beginning on July 1, 2020. However, these do not have any significant impact on the Fund's
effective
There are certain new standards and amendments to the accounting and reporting standards that are mandatory for
the Fund's annual accounting period beginning on or after July 1, 2021. However, these do not have any significant
impact on the Fund's operations and, therefore, have not been detailed in these financial statements.
Pakistan requires the management to make judgments, estimates and assumptions that affect the application of
policies and reported amounts of assets and liabilities, income and expenses. The estimates, judgments and
judgments about carrying values of assets and liabilities. The estimates and underlying assumptions are reviewed on
years.
The estimates and judgments that have a significant effect on the financial statements of the Fund relate to
classification, valuation and impairment of financial assets (notes 4.3 and 6) and provision for taxation (note 4.13 and
15).
These financial statements have been prepared under the historical cost convention except that investments classified
as 'at fair value through profit or loss' which are measured at their fair values.
which the Company operates. These financial statements are presented in Pakistani Rupee, which is the Fund's
functional and presentation currency.
policies have been applied consistently to all the years.
These comprise balances with banks in savings and current accounts and other short-term highly liquid investments
_______________________________________________Annual Report 2021 | 103

a) Equity instruments
initial recognition to measure the investment at FVOCI. The management considers its investment in equity securities
being managed as a group of assets and hence has classified them as FVPL. Accordingly, the irrevocable option has
not been considered.
The dividend income for equity securities classified under FVPL is recognised in the Income Statement.
b) Impairment
The Fund assesses on a forward looking basis the expected credit loss (ECL) associated with it's financial assets
(other than debt instruments) carried at amortised cost and FVOCI. The Fund recognises loss allowances for such
losses at each reporting date. The measurement of ECL reflects:
4.3.4 Derecognition
4.3.5 Derivatives
4.6 Provisions
best estimate.
_______________________________________________Annual Report 2021 | 104

charges, if applicable. The sales load is payable to the Management Company.
Units redeemed are recorded at the redemption price applicable to units for which the Management Company receives
redemption applications during business hours of that day. The redemption price is equal to NAV as of the close of the
business day, less an amount as the Management Company may consider to be an appropriate provision of duties and
charges.
Management Company. Based on Mutual Funds Association of Pakistan's (MUFAP) guidelines duly consented by the
SECP, distribution for the year also includes portion of income already paid on units redeemed during the year.
redeemed
date, as the case may be, of units and the NAV per unit at the beginning of the relevant accounting period. Further, the
element of income is a transaction of capital nature and the receipt and payment of element of income is taken to unit
holders' fund. However, to maintain the same ex-dividend NAV of all units outstanding on the accounting date, net
element of income contributed on issue of units lying in unit holders fund is refunded on units in the same proportion as
dividend bears to accounting income available for distribution.
- Gains / (losses) arising on sale of investments are recorded at the date at which the transaction takes place.
- Unrealised gains / (losses) arising on re-measurement of investments classified as 'financial assets at fair value
through profit or loss' are recorded in the period in which these arise.
- Profit on saving account with banks is recognised on a time proportion basis using the effective yield method.
- Dividend income is recognised when the right to receive the dividend is established i.e. on the commencement of
date of book closure of the investee company / institution declaring the dividend.
4.12 Expenses
4.13 Taxation
Current
Deferred
corresponding tax bases used in the computation of the taxable profit. The deferred tax liabilities are generally
recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable
that taxable profits will be available against which the deductible temporary differences, unused tax losses and tax
credits can be utilised. Deferred tax is calculated at the rates that are expected to apply to the period when the
differences reverse, based on enacted tax rates.
_______________________________________________Annual Report 2021 | 105

Tax Ordinance, 2001 subject to the condition that not less than 90% of its accounting income for the year, as reduced
by capital gains, whether realised or unrealised, is distributed amongst the unit holders. Furthermore, for the purpose
of determining distribution of at least 90% of the accounting income, the income distributed through bonus units shall
not be taken into account.
Earnings / (loss) per unit is calculated by dividing the net income / (loss) of the year after taxation of the Fund by the
Earnings / (loss) per unit (EPU) has not been disclosed as, in the opinion of the management, the determination of
foreign currencies are recognised in the Income Statement.
5 BALANCES WITH BANKS Note 2021 2020

------------------- Rupees in '000 -------------------
Savings accounts 5.1 285,161 249,528
Current account 11,340 10,118
296,501 259,646
5.1 These includes a balance of Rs. 11.958 million (2020: Rs. 16.414 million) maintained with Meezan Bank Limited (a
related party) that has an expected profit rate of 2.5% (2020: 3.00%) per annum. Other profit and loss sharing
accounts of the Fund have expected profit rates of profit ranging from 1.50% to 7.32% per annum (2020: 2.00% to
7.50% per annum).
Note 2021 2020

6 INVESTMENTS ------------------- Rupees in '000 -------------------
Listed equity securities - 'at fair value through profit or loss' 6.1 4,650,421 3,782,362
6.1 Investments in equity securities - listed
Unrealised
Carrying Market Market Paid-up capital
Purchases Bonus / appreciation / Net
As at July 1, Sales during As at June value as at Value as at value of of investee
during the right (diminution) assets of
Name of the investee company 2020 the year 30, 2021 June 30, June 30, total company (with
year shares as at June 30, the
2021 2021 invest- face value of
2021 Fund
ment investment)
----------------------------(Number of shares)----------------------------
----------------------------(Rupees in '000)----------------------------
---------------------------% ----------------------------
Ghandhara Industries Limited 2,200 - - - 2,200 266 614 348 0.01 0.01 0.01
Honda Atlas Cars (Pakistan) Limited 31,300 31,000 - 62,300 - - - - - - -
Indus Motor Company Limited 35,640 - - 35,640 - - - - - - -
Millat Tractors Company Limited 9,675 63,760 6,921 - 80,356 70,589 86,753 16,164 1.76 1.87 0.14
Pak Suzuki Motor Company Limited - 162,000 - 162,000 - - - - - - -
1.77 1.88 0.15
Automobile Parts and Accessories
Agriauto Industries Limited (note 6.1.1) 75,000 - - 75,000 - - - - - - -
Panther Tyres Limited - 47,735 - - 47,735 3,141 3,300 159 0.07 0.07 0.03
0.07 0.07 0.03
Cable & Electrical Goods
Pak Elektron Limited - 850,000 - 850,000 - - - - - - -
- - -
Unrealised
Purchases Bonus / apprecia- Net
Name of the investee company during the right tion / (diminu- assets of
2020 the year 30, 2021 June 30, June 30, total company (with
_______________________________________________Annual
year shares
2021 2021
tion) as at Report
the
invest- 2021
face value| of106
0.07 0.07 0.03
- - -
Unrealised
year shares tion) as at the
June 30, 2021 Fund
ment investment)
----------------------------(Rupees in '000)----------------------------
---------------------------% ----------------------------
Cement
Attock Cement Pakistan Limited * - 75,000 - 74,600 400 67 72 5 - - -
Cherat Cement Company Limited - 537,700 - 115,000 422,700 70,869 74,979 4,110 1.52 1.61 0.22
D.G. Khan Cement Company Limited 799,500 1,315,650 - 1,465,000 650,150 74,858 76,666 1,808 1.56 1.65 0.15
Fauji Cement Company Limited * 45,000 515,000 - 500,000 60,000 1,378 1,380 2 0.03 0.03 -
Kohat Cement Limited 673,020 127,800 - 150,000 650,820 92,976 134,388 41,412 2.73 2.89 0.32
Lucky Cement Limited 648,067 139,600 - 222,037 565,630 310,535 488,388 177,853 9.93 10.50 0.17
Maple Leaf Cement Limited 1,971,577 2,950,000 - 2,674,000 2,247,577 88,609 105,591 16,982 2.15 2.27 0.20
Pow er Cement Limited - 3,555,000 - 3,555,000 - - - - - - -
17.92 18.95 1.06
Chemicals
Dynea Pakistan Limited (note 6.1.1) - 119,500 - - 119,500 25,210 26,410 1,200 0.54 0.57 1.27
Engro Polymer & Chemicals Limited 2,318,041 2,460,000 - 2,291,000 2,487,041 93,069 117,488 24,419 2.39 2.53 0.27
Ghani Global Holdings Limited (note 6.1.3) - 2,200,000 158,000 2,358,000 - - - - - - -
ICI Pakistan Limited 204,679 21,800 - 76,300 150,179 105,821 130,476 24,655 2.65 2.81 0.16
Ittehad Chemicals Limited 216,000 - - 216,000 - - - - - - -
Lotte Chemical Pakistan Limited 65,000 - - 65,000 - - - - - - -
Sitara Chemical Industries Limited 57,000 26,400 - 54,200 29,200 10,722 10,278 (444) 0.21 0.22 0.14
5.79 6.13 1.84
Commercial Banks
BankIslami Pakistan Limited 432,000 5,698,000 - 309,000 5,821,000 62,890 65,428 2,538 1.33 1.41 0.53
Meezan Bank Limited
(an associate of the Fund) (note 6.1.3) 1,349,050 1,005,000 154,905 365,000 2,143,955 165,872 247,434 81,562 5.03 5.32 0.15
6.36 6.73 0.68
Engineering
Agha Steel Industries Limited - 4,340,000 - 3,668,000 672,000 21,244 22,667 1,423 0.46 0.49 0.12
Aisha Steel Mills Limited - 1,325,000 - - 1,325,000 35,354 33,006 (2,348) 0.67 0.71 0.17
International Industries Limited 221,300 366,000 - 233,000 354,300 66,451 74,764 8,313 1.52 1.61 0.27
International Steel Limited 726,500 270,000 - 707,000 289,500 21,896 27,042 5,146 0.55 0.58 0.07
Ittefaq Iron Industries Limited - 865,000 - 225,000 640,000 13,225 12,128 (1,097) 0.25 0.26 0.44
Mughal Iron and Steel Industries Limited 1,000 1,028,980 - 512,000 517,980 41,224 54,077 12,853 1.10 1.16 0.21
4.55 4.81 1.28
Fertilizer
Engro Corporation Limited (note 6.1.2) 1,283,790 260,000 - 567,000 976,790 288,926 287,772 (1,154) 5.85 6.20 0.17
Engro Fertilizers Limited 2,374,500 855,000 - 1,952,000 1,277,500 79,853 89,770 9,917 1.83 1.93 0.10
Fatima Fertilizer Company Limited 287,000 - - 287,000 - - - - - - -
7.68 8.13 0.27
Al-Shaheer Corporation Limited 12,511 486 - - 12,997 148 259 111 0.01 0.01 0.01
At-Tahur Limited - 242,000 - 242,000 - - - - - - -
National Foods Limited (note 6.1.1) 4,920 - 1,230 - 6,150 1,232 1,408 176 0.03 0.03 0.01
The Organic Meat Company Limited - 100,000 - 100,000 - - - - - - -
0.04 0.04 0.02
Glass and Ceramics
Ghani Glass Limited 227,500 475,125 - - 702,625 28,106 33,867 5,761 0.69 0.73 0.13
Ghani Global Glass Limited - 1,200,000 - 1,200,000 - - - - - - -
Shabbir Tiles & Ceramics Limited (note 6.1.1) - 1,055,000 - 285,000 770,000 17,816 25,680 7,864 0.52 0.55 0.47
Tariq Glass Industries Limited 29,800 25,000 - 54,800 - - - - - - -
1.21 1.28 0.60
Leather & Tanneries
Service Global Footw ear Limited - 234,224 - - 234,224 12,461 13,545 1,084 0.28 0.29 0.11
0.28 0.29 0.11
Miscellaneous
Shifa International Hospitals Limited - 40,000 - 40,000 - - - - - - -
Siddiqsons Tin Plate Limited - 500,000 - 500,000 - - - - - - -
Synthetic Products Enterprises Limited * - 314,545 - 314,000 545 26 23 (3) - - -
- - -
Unrealised
_______________________________________________Annual
Name of the investee company
2020
during the right
the year 30, 2021 June 30, June 30, Report
tion / (diminu- assets of
total 2021 | 107
company (with
Shifa International Hospitals Limited - 40,000 - 40,000 - - - - - - -
Synthetic Products Enterprises Limited * - 314,545 - 314,000 545 26 23 (3) - - -
- - -
Unrealised
June 30, 2021 Fund
ment investment)
----------------------------(Rupees in '000)----------------------------
---------------------------% ----------------------------

Mari Petroleum Company Limited 320,881 15,000 - 49,300 286,581 360,730 436,861 76,131 8.88 9.39 0.21
Oil and Gas Development Company Limited 3,029,388 1,465,500 - 2,153,500 2,341,388 248,047 222,502 (25,545) 4.52 4.78 0.05
Pakistan Oilfields Limited 487,929 59,480 - 265,000 282,409 101,805 111,230 9,425 2.26 2.39 0.10
Pakistan Petroleum Limited 2,587,913 1,728,000 - 1,555,550 2,760,363 248,881 239,682 (9,199) 4.87 5.15 0.10
20.53 21.71 0.46
Oil & Gas Marketing Companies
Attock Petroleum Limited 172,338 16,000 - 149,200 39,138 11,994 12,564 570 0.26 0.27 0.04
Hascol Petroleum Limited * 2,081,375 451,571 - 2,525,000 7,946 124 71 (53) - - -
Hi-Tech Lubricant Limited 85,000 450,000 - 526,000 9,000 380 638 258 0.01 0.01 0.01
Pakistan State Oil Company Limited 822,688 440,100 - 359,875 902,913 168,494 202,478 33,984 4.12 4.35 0.19
Shell Pakistan Limited 23,700 49,700 - 73,400 - - - - - - -
Sui Northern Gas Pipeline Limited 1,879,000 1,275,000 - 2,081,000 1,073,000 48,393 52,126 3,733 1.06 1.12 0.17
5.45 5.75 0.41
Paper and Board
Century Paper and Board Mills Limited 350,000 345,900 112,100 75,000 733,000 54,515 89,477 34,962 1.82 1.92 0.42
Cherat Packaging Limited * 125,180 - - 125,000 180 21 36 15 - - -
Packages Limited 205,928 16,000 - - 221,928 79,640 120,995 41,355 2.46 2.61 0.25
Roshan Packages Limited 200,000 - - 200,000 - - - - - - -
Security Papers Limited - 46,800 - - 46,800 9,251 6,766 (2,485) 0.14 0.15 0.08
4.42 4.68 0.75
Pharmaceuticals
AGP Limited 961,750 25,000 - 510,500 476,250 52,280 55,878 3,598 1.14 1.20 0.17
GlaxoSmithKline Consumer Health Care
Limited 150,200 - - 33,000 117,200 31,841 29,311 (2,530) 0.60 0.63 0.10
GlaxoSmithKline Pakistan Limited 10,000 - - 10,000 - - - - - - -
Highnoon Laboratories Limited 1,751 - 175 - 1,926 878 1,156 278 0.02 0.02 0.01
IBL HealthCare Limited - 188,500 - 25,000 163,500 19,882 18,170 (1,712) 0.37 0.39 0.30
The Searle Company Limited 338,248 125,172 - 49,000 414,420 85,633 100,547 14,914 2.04 2.16 0.20
4.17 4.40 0.78
K-Electric Limited (note 6.1.1) 25,973,500 7,010,000 - 19,096,000 13,887,500 45,776 58,050 12,274 1.18 1.25 0.14
The Hub Pow er Company Limited 3,392,316 1,345,000 - 2,936,000 1,801,316 142,951 143,511 560 2.92 3.09 0.14
4.10 4.34 0.28
Refinery
Attock Refinery Limited - 190,000 - 150,000 40,000 11,282 10,258 (1,024) 0.21 0.22 0.04
Byco Petroleum Pakistan Limited - 3,400,000 - 240,000 3,160,000 33,031 36,688 3,657 0.75 0.79 0.06
0.96 1.01 0.10
Technology and Communication
Avanceon Limited 143,440 795,000 63,688 495,000 507,128 37,015 46,493 9,478 0.95 1.00 0.20
Pakistan Telecommunication Company Limited - 1,215,000 - 1,215,000 - - - - - - -
Systems Limited 265,750 105,000 29,925 81,500 319,175 64,448 178,808 114,360 3.64 3.85 0.23
TPL Trakker Limited - 583,000 - 511,000 72,000 864 1,261 397 0.03 0.03 0.04
4.62 4.88 0.47
Textile Composite
Kohinoor Textile Mills Limited - 50,000 10,000 40,000 3,040 3,008 (32) 0.06 0.06 0.01
Nishat Mills Limited 150,100 1,083,000 - 605,000 628,100 63,662 58,602 (5,060) 1.19 1.26 0.18
Interloop Limited 1,802,000 325,000 - 503,500 1,623,500 77,214 113,694 36,480 2.31 2.44 0.19
3.56 3.76 0.38
Textile Weaving
Feroze1888 Mills Limited 450,700 101,000 - 352,000 199,700 17,388 20,072 2,684 0.41 0.43 0.05
0.41 0.43 0.05
Vanaspati and Allied Industries
Unity Foods Limited 300,000 4,815,000 - 4,355,000 760,000 24,851 33,835 8,984 0.69 0.73 0.08
0.69 0.73 0.08
Total as at June 30, 2021 3,849,145 4,650,421 801,276 94.58 100.00
Total as at June 30, 2020 3,814,857 3,782,362 (32,495)
* Nil figures due to rounding off difference
_______________________________________________Annual Report 2021 | 108

6.1.1 All shares have a nominal value of Rs 10 each except for the shares of Agriauto Industries Limited, Dynea Pakistan
Limited, National Foods Limited and Shabbir Tiles & Ceramics Limited which have a nominal value of Rs 5 each and K-
Electric Limited which have a nominal value of Rs 3.5 each.
6.1.2 202,000 shares (June 30, 2020: 202,000 shares) of Engro Corporation Limited, having market value of Rs 59.51
million (June 30, 2020: Rs 59.17 million) as at June 30, 2021, have been pledged as collateral in favour of National
Clearing Company Pakistan Limited against exposure margins and mark to market losses.
in favour of CISs.
During the year ended June 30, 2018, the Supreme Court of Pakistan passed a judgment on June 27, 2018 whereby
during the year ended June 2019. During the year ended June 30, 2021, the CISs had filed a fresh constitutional
petition via CP 4653 dated July 11, 2019. In this regard, on July 15, 2019, the Honourable High of Sindh had issued
notices to the relevant parties and had ordered that no third party interest on bonus shares issued to the Funds in lieu
of their investments be created in the meantime. The matter is still pending adjudication and the Funds have included
these shares in their portfolio, as the Management is confident that the decision of the constitutional petition will be in
favour of the CISs.
As at June 30, 2021, the market value of bonus shares of the Fund withheld by certain companies at the time of
declaration of bonus shares amounted to Rs.9.261 million (2020: Rs 7.794 million).
Note 2021 2020

------------------- Rupees in '000 -------------------
6.2 Unrealised appreciation / (diminution) on
re-measurement of investments classified as
'financial assets at fair value through profit or loss'

Carrying value of investments 6.1 (3,849,145) (3,814,857)
801,276 (32,495)
7 ADVANCE, DEPOSITS AND OTHER RECEIVABLE
Advance against Initial Public Offer 7.1 66,836 -
Profit accrued on balances with banks 1,645 287
71,219 3,025
7.1 This pertains to advance made against subscription of IPO of Pakistan Aluminium Beverage Cans Limited.
_______________________________________________Annual Report 2021 | 109

8 PAYABLE TO AL MEEZAN INVESTMENT MANAGEMENT Note 2021 2020
LIMITED - MANAGEMENT COMPANY ------------------- Rupees in '000 -------------------
Remuneration payable 8.1 577 877

Sindh Sales Tax on remuneration payable 8.2 75 114
Allocated expenses payable 8.3 450 325
Sindh Sales Tax payable on sales load 24 25
Selling and marketing expenses payable 8.4 11,878 3,818
13,185 5,351
8.1 As per regulation 61 of the NBFC Regulations 2008, the Management Company is entitled to a remuneration equal to
8.2 During the year, an amount of Rs. 12.179 million (2020: Rs. 10.968 million) was charged on account of sales tax on
management fee levied through the Sindh Sales Tax on Services Act, 2011 and an amount of Rs. 12.218 million
(2020: Rs. 11.182 million) has been paid to the Management Company which acts as a collecting agent.
Scheme (CIS).
The Management Company based on its own discretion charged 0.1% of the average annual net assets of the
scheme for allocation of such expenses to the Fund from July 1, 2020 till March 9, 2021 and 0.11% with effect from
March 10, 2021 (2020: 0.1%).
8.4 In accordance with Circular 11 dated July 5, 2019 with respect to charging selling and marketing expenses, the
Management Company, based on its own discretion has charged selling and marketing expenses at the following rates
of the average annual net assets of the Fund during the year.
Rate applicable from July 1, 2020 to Rate applicable from March 10, 2021
2020
March 9, 2021 to June 30, 2021
0.4% of the average annual
0.4% of the average annual net assets 1% of the average annual net assets
net assets
The above rates have also been approved by the Board of Directors of the Management Company.
9 PAYABLE TO CENTRAL DEPOSITORY COMPANY OF Note 2021 2020

PAKISTAN LIMITED - TRUSTEE ------------------- Rupees in '000 -------------------
Trustee fee payable 9.1 493 403

557 455
deed as follows:
On net assets:
- up to Rs 1,000 million 0.7 million or 0.2% per annum of net assets, whichever is higher.
- exceeding Rs.1,000 million Rs 2.0 million plus 0.10% per annum of net assets exceeding Rs 1,000 million.
remuneration of the Trustee levied through the Sindh Sales Tax on Services Act, 2011 and an amount of Rs. 0.727
million (2020: Rs. 0.689 million) was paid to the Trustee which acts as a collecting agent.
10 PAYABLE TO THE SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN (SECP)
In accordance with the NBFC Regulations, 2008, a collective investment scheme classified as an "Equity scheme" is
required to pay annual fee to the Securities and Exchange Commission of Pakistan.
_______________________________________________Annual Report 2021 | 110

Accordingly, the Fund has charged the SECP Fee at the rate of 0.02% (2020: 0.2%) of average annual net assets of
the Fund during the current year.
Note 2021 2020

11 ACCRUED EXPENSES AND OTHER LIABILITIES ------------------- Rupees in '000 -------------------

Shariah advisor fee payable 209 269
Withholding tax payable - 9,415
Capital gain tax payable 1,469 1,469
Provision for Federal Excise Duty and related Sindh Sales Tax
on management fee 11.2 37,524 37,524
Provision for Federal Excise Duty and related Sindh Sales Tax
on sales load 11.2 3,732 3,732
Provision for Sindh Workers' Welfare Fund (SWWF) 11.3 77,691 52,308
Zakat payable 60 42
135,530 119,253
11.1 According to the instructions of the Shariah Advisor, any income earned by the Fund from investments whereby
portion of the investment of investee company has been made in Shariah non-compliant avenues, such proportion of
income of the Fund from those investments should be given away for charitable purposes directly by the Fund.
Accordingly, during the year ended June 30, 2021, Shariah non-compliant income amounting to Rs 5.697 million (2020
: Rs 5.129 million) was charged as charity expense and Rs 3.500 million was disbursed to following charitable / welfare
organisations respectively:
2021 2020
S.No. Charitable Organisations Charitable Organisations
Rupees in '000 Rupees in '000
1 Afzaal Memorial Thalassemia Foundation 200 Roshni Homes 200
2 Dhoraji Youth Services Foundation 200 Women Islamic Lawyer (WIL) Forum 200
3 Edhi Foundation 300 Jamal Noor Hospital 300
4 Chippa Welfare Association 300 Fatimid Foundation Kidney Center 300
5 IBA Centre for Excellence in Islamic Finance 500 Autism Society of Pakistan 500
Chippa Welfare Association 500
Edhi Foundation 500
The Patients behbud Society for AKUH 1,000
Total 1,500 Total 3,500
Management Companies (AMCs) as a result of which FED at the rate of 16% on the remuneration of the Management
Company and sales load was applicable with effect from June 13, 2013. The Management Company was of the view
that since the remuneration made was already subject to provincial sales tax, further levy of FED would result in
double taxation which did not appear to be the spirit of the law. Hence, on September 4, 2013 a constitutional petition
was filed with the Sindh High Court (SHC) by the Management Company together with various other asset
management companies challenging the levy of FED.
financial statements of the Fund as the matter is pending before the Supreme Court of Pakistan. Had the provision for
FED not been made, the Net Asset Value of the Fund as at June 30, 2021 would have been higher by Re 0.15 (2020:
Re 0.14) per unit.
_______________________________________________Annual Report 2021 | 111

regarding the applicability of SWWF on CISs / mutual funds, MUFAP recommended that, as a matter of abundant
12.1 There were no contingencies and commitments outstanding as at June 30, 2021 and June 30, 2020.
2021 2020
13 AUDITORS' REMUNERATION ------------------- Rupees in '000 -------------------

796 815
The Total Expense Ratio (TER) of the Fund as at June 30, 2021 is 4.07% (2020: 3.41%) which includes 0.87%
representing government levies on the Fund such as provision for Sindh Workers' Welfare Fund, Sales Taxes, Federal
Excise Duties, Annual fee to the SECP etc. This ratio is within the maximum limit of 4.5% prescribed under the NBFC
Regulations for a collective investment scheme categorised as an Equity Scheme.
15 TAXATION
The income of the Fund is exempt from income tax under clause (99) of Part I of the Second Schedule to the Income
required minimum percentage of income earned by the Fund for the year ended June 30, 2021 to the unit holders in
the manner as explained above, no provision for taxation has been made in these financial statements during the year.
applicable on Funds as per Section 4B of the Income Tax Ordinance 2001.
Connected persons / related parties include Al Meezan Investment Management Limited being the Management
Company, the Central Depository Company of Pakistan Limited being the Trustee, other collective investment
schemes managed by the Management Company, any entity in which the Management Company, its CISs or their
connected persons have material interest, any person or company beneficially owning directly or indirectly ten percent
or more of the capital of the Management Company or the net assets of the Fund, directors and their close family
members and key management personnel of the Management Company.
_______________________________________________Annual Report 2021 | 112

Transactions with connected persons / related parties are executed on an arm's length basis and essentially comprise
sale and redemption of units, fee on account of managing the affairs of the Fund, sales load, other charges and
distribution payments to connected persons. The transactions with connected persons are in the normal course of
business, at contracted rates and at terms determined in accordance with market rates.
Remuneration to the Management Company of the Fund is determined in accordance with the provisions of the NBFC
Regulations and the Trust Deed.
Remuneration to the Trustee of the Fund is determined in accordance with the provisions of the Trust Deed.
The details of transactions carried out by the Fund with connected persons during the year and balances with them as
Balances 2021 2020

------------------- Rupees in '000 -------------------
Remuneration payable to the Management Company 577 877
Sindh Sales Tax payable on remuneration of the Management Company 75 114
Allocated expenses payable 450 325
Selling and marketing expenses payable 11,878 3,818
Central Depository Company of Pakistan Limited - CDC (Trustee)

Security deposit 238 238
Remuneration payable to the Trustee 493 403
Sindh Sales Tax on remuneration of the Trustee 64 52
Meezan Bank Limited

Profit receivable on saving account 64 70
Balance with bank 11,958 16,414
Sindh Sales Tax on sales load 12 2
Investment in 22,984,581 units (2020: 22,984,581 units) 405,599 306,099
Investment in 2,143,955 shares (2020: 1,349,050 shares) 247,434 92,882
Shariah Advisor fee payable 209 269
MSAF - Meezan Strategic Allocation Plan - I

MSAF - Meezan Strategic Allocation Plan - II

MSAF - Meezan Strategic Allocation Plan - IV


Investment of 3,758,262 units (2020: 3,382,999 units ) 66,320 45,053
MSAF - Meezan Strategic Allocation Plan - Ill

Investment of 2,701,461 units (2020: 563,466 units) 47,672 7,504
MSAF - Meezan Strategic Allocation Plan - V


_______________________________________________Annual Report 2021 | 113

Balances 2021 2020
------------------- Rupees in '000 -------------------
Pakistan Kuwait Investment Company (Private) Limited
Al Meezan Investment Management Limited - Employees Gratuity Fund

Investment of 438,459 units (2020: nil) 7,737 -
Unit holders holding 10% or more units of the Fund - 410,904
2021 2020
------------------- Rupees in '000 -------------------
Remuneration to the Management Company 93,684 84,366
Central Depository Company of Pakistan Limited - CDC (Trustee)

Remuneration of the Trustee 5,684 5,219
CDS charges 277 286
Meezan Bank Limited

Profit on saving account 352 4,160
Purchase of 1,005,000 shares (2020: 1,976,000 shares) 100,872 140,500
Sale of 365,000 shares (2020: 1,525,000 shares) 39,067 106,094
Bonus shares: 154,905 shares (2020: nil) - -
Issuance of nil units (2020: 752,354 units) - 10,005
Shariah Advisor fee 480 539
MSAF - Meezan Strategic Allocation Plan - I

MSAF - Meezan Strategic Allocation Plan - II

MSAF - Meezan Strategic Allocation Plan - IV


_______________________________________________Annual Report 2021 | 114

2021 2020
------------------- Rupees in '000 -------------------
MSAF - Meezan Strategic Allocation Plan - Ill
Redemption of 2,992,304 units (2020: 545,023 units) 53,474 7,495
Dividend Paid - 245
MSAF - Meezan Strategic Allocation Plan - V

Issuance of 399,627 units (2020: 316,711 units) 6,968 4,212
Redemption of 430,249 units (2020: 155,721 units) 7,639 2,141
Dividend Paid - 70
Al Meezan Investment Management Limited - Employees Gratuity Fund

Units issued: 438,459 (2020: nil) 7,000 -
Pakistan Kuwait Investment Company (Private) Limited


Issuance of units 4,947,551 (2020: 5,641,735 units) 74,483 75,796
Other balances due to / from related parties / connected persons are included in the respective notes to the financial
statements.

----------------------------------------- 2021 ------------------------------------------
At fair value
At amortised
cost
or loss
Financial assets ------------------- Rupees in '000 -------------------
Balances with banks 296,501 - 296,501

Investments - 4,650,421 4,650,421
Advance, deposits and other receivable 71,219 - 71,219
438,687 4,650,421 5,089,108
-------------------- 2021 --------------------

At fair value
At amortised
cost
or loss

Payable to the Central Depository Company of Pakistan
Limited - Trustee - 557 557
Payable to Meezan Bank Limited - 101 101
Payable against conversion and redemption of units - 16,040 16,040
Payable against purchase of investments - - -
Dividend payable - 4,917 4,917
- 44,618 44,618
_______________________________________________Annual Report 2021 | 115

------------------------------- 2020 --------------------------------
At fair value
At amortised
cost
or loss
Financial assets ------------------- Rupees in '000 -------------------

Investments - 3,782,362 3,782,362
310,185 3,782,362 4,092,547
------------------------------- 2020 --------------------------------

At fair value
At amortised
cost
or loss

Payable to the Central Depository Company of Pakistan
- 73,867 73,867
The risk management policy of the Fund aims to maximise the return attributable to the unit holders and seeks to
minimise potential adverse effects on the Fund’s financial performance. Risks of the Fund are being managed by the
Fund manager in accordance with the approved policies of the Investment Committee which provides broad guidelines
for management of risk pertaining to market risks (including price risk and interest rate risk), credit risk and liquidity
risk. Further, overall exposure of the Fund complies with the NBFC Regulations, and the directives issued by
Securities and Exchange Commission of Pakistan (SECP). Risks managed and measured by the Fund are explained
below:
18.1 Market risk
Market risk comprises of three types of risks: profit risk, currency risk and price risk.
of changes in market interest rates. As of June 30, 2021, the Fund is exposed to such risk on its balances held
with banks. The Investment Committee of the Fund reviews the portfolio of the Fund on a regular basis to ensure
that the risk is managed within the acceptable limits.
_______________________________________________Annual Report 2021 | 116

Presently, the Fund holds balances with banks which expose the Fund to cash flow profit rate risk. In case of 100
basis points increase / decrease in applicable rates on the last repricing date with all other variables held
constant, the net income / loss for the year and net assets of the Fund would have been higher / lower by Rs.
2.852 million (2020: Rs. 2.559 million).
As at June 30, 2021, the Fund does not hold any fixed rate instrument that may expose the Fund to fair value
profit rate risk.
The composition of the Fund's investment portfolio and KIBOR rates are expected to change over time. Accordingly,
the sensitivity analysis prepared as of June 30, 2021 is not necessarily indicative of the impact on the Fund's net
assets of future movements in profit rates.
The Fund's profit rate sensitivity related to financial assets and financial liabilities as at June 30, 2021 can be
------------------------------------------------------------ 2021 ------------------------------------------------------------

Exposed to yield / profit rate risk
Not
More than
Effective yield / exposed to
three
profit rate Up to three More than yield / Total
months
(%) months one year profit rate
and up to
risk
one year
------------------- Rupees in '000 -------------------
Financial assets
Balances w ith banks 1.50% - 7.32% 285,161 - - 11,340 296,501
Investments - - - 4,650,421 4,650,421
Advance, deposits and other receivable - - - 71,219 71,219
285,161 - - 4,803,947 5,089,108
Payable to Central Depository Company of Pakistan
Limited - Trustee - - - 557 557
Payable against conversion and redemption of units - - - 16,040 16,040
Payable against purchase of investments - - - - -
- - - 44,618 44,618
On-balance sheet gap (a) 285,161 - - 4,759,329 5,044,490
Total profit rate sensitivity gap (a+b) 285,161 - -
Cum ulative profit rate sensitivity gap 285,161 285,161 285,161
------------------------------------------------------------ 2020 ------------------------------------------------------------

Not
More than
three
months
_______________________________________________Annual and up to Report 2021 | 117
risk
------------------------------------------------------------ 2020 ------------------------------------------------------------

Not
More than
three
months
and up to
risk
one year
------------------- Rupees in '000 -------------------
Financial assets
Investments - - - 3,782,362 3,782,362
249,528 - - 3,843,019 4,092,547
Limited - Trustee - - - 455 455
- - - 73,867 73,867
(ii) Currency risk
(iii) Price risk
changes in market prices (other than those arising from profit rate risk or currency risk) whether those changes
In case of 1% increase / decrease in KMI 30 index on June 30, 2021, with all other variables held constant, total
income of the fund would increase / decrease by Rs 46.504 million (2020: Rs 37.823 million) and the net assets
of the Fund would increase / decrease by the same amount as a result of gains / losses on equity securities
classified as financial assets at fair value through profit or loss.
the index. This represents management's best estimate of a reasonable possible shift in the KMI 30 Index,
correlation thereof to the KMI 30 Index, is expected to change over time. Accordingly, the sensitivity analysis
movements in the level of the KMI 30 Index.
_______________________________________________Annual Report 2021 | 118

18.2 Liquidity risk
As per the NBFC Regulations, the Fund can borrow in the short-term to ensure settlement. The maximum limit of such
borrowing is fifteen percent of the net assets upto 90 days and would be secured by the assets of the Fund.
year.
-------------------------------------------------------------------------------- 2021 ------------------------------------------------------------------------
More than More than

More than Financial
one month three
Within 1 one year More than instruments
and upto months Total
month and upto 5 years with no fixed
three and upto
five years maturity
months one year
--------------------------- Rupees in '000 ----------------------------

Financial assets
Balances with banks 296,501 - - - - - 296,501
Investments - - - - - 4,650,421 4,650,421
Advance, deposits and other receivable 68,481 - - - - 2,738 71,219
435,949 - - - - 4,653,159 5,089,108
Payable to Al Meezan Investment Management
Limited - Management Company 13,185 - - - - - 13,185
Limited - Trustee 557 - - - - - 557
Payable against conversion and redemption of units 16,040 - - - - - 16,040
Payable against purchase of investments - - - - - - -
Accrued expenses and other liabilities 5,236 9,818 - - - - 15,054
40,036 9,818 - - - - 49,854
Net assets / (liabilities) 395,913 (9,818) - - - 4,653,159 5,039,254
-------------------------------------------------------------------------------- 2020 ------------------------------------------------------------------------
More than More than

More than Financial
one month three
Within 1 one year More than instruments
and upto months Total
month and upto 5 years with no fixed
three and upto
five years maturity
months one year
_______________________________________________Annual Report 2021 | 119
Accrued expenses and other liabilities #REF! 9,818 - - - - #REF!
#REF! 9,818 - - - - #REF!
Net assets / (liabilities) #REF! (9,818) - - - 4,653,159 #REF!
-------------------------------------------------------------------------------- 2020 ----------------------------------------------------------------
More than
More than Financial
one More than
three instruments
Within 1 month one year More than
months with no Total
month and upto and upto 5 years
and upto fixed
three five years
one year maturity
months
--------------------------- Rupees in '000 ----------------------------

Financial assets
Balances w ith banks 259,646 - - - - - 259,646
Investments - - - - - 3,782,362 3,782,362
Advance, deposits and other receivable 287 - - - - 2,738 3,025
307,447 - - - - 3,785,100 4,092,547
Limited - Trustee 455 - - - - - 455
Dividend payable 19,572 - - - - - 19,572
Accrued expenses and other liabilities 7,082 7,681 - - - - 14,763
66,186 7,681 - - - - 73,867
Net assets / (liabilities) 241,261 (7,681) - - - 3,785,100 4,018,680
18.3 Credit risk
2021 2020
Balance as Balance as per
Maximum Maximum
per statement statement of
of assets and assets and
------------------------------------ '(Rupees in '000) ------------------------------------
Bank balances 296,501 296,501 259,646 259,646

Investments 4,650,421 - 3,782,362 -
Advance, deposits and other receivable 71,219 71,219 3,025 3,025
5,089,108 438,687 4,092,547 310,185
Difference in the balance as per the statement of assets and liabilities and maximum exposure is due to the fact that
investments in equity securities of Rs 4,650.418 million (2020: Rs 3,782.362 million) is not exposed to credit risk.
_______________________________________________Annual Report 2021 | 120

control established in the settlement process. The Fund's policy is to enter into financial contracts in accordance with
account of its placements in banks and profit accrued thereon, dividend receivable and receivable against conversion
of units and against investments. The credit rating profile of balances with banks is as follows:
2021 2020
AAA 33.37% 3.79%

AA+ 16.19% 34.41%
AA 49.35% -
A+ 1.05% 61.79%
A 0.04% 0.01%
100% 100%
As at June 30, 2021, the Fund held the following financial instruments measured at fair values:
------------------------- 2021 -------------------------

Financial assets --------------------------------------------------------- '(Rupees in '000) ------------------------------------
At fair value through profit or loss 4,650,421 -

4,650,421 - -
_______________________________________________Annual Report 2021 | 121

------------------------- 2020 -------------------------
Financial assets --------------------------------------------------------- '(Rupees in '000) ------------------------------------
At fair value through profit or loss 3,782,362 - -

3,782,362 - -
times.
------------------------- 2021 ------------------------- ------------------------- 2020 -------------------------

Category Number of amount Percentage Number of amount Percentage
'000) '000)
Individuals 4,391 1,559,344 31.71 4,029 1,281,030 32.73

Associated Companies / 13 1,804,612 36.70 11 1,511,311 38.62
Directors
Insurance Companies 1 161,350 3.28 1 121,769 3.11
Banks and DFIs 1 10,127 0.20 1 7,643 0.20
Retirement Funds 22 1,255,184 25.52 23 925,457 23.65
Public Limited Companies - - - - - -
Others 35 127,224 2.59 32 66,127 1.84
4,463 4,917,841 100% 4,097 3,913,337 100%
--------------------- 2021 --------------------- --------------------- 2020 ---------------------

Percentage of
Percentage of
Name of broker commission Name of broker
commission paid
paid
Invest & Finance Securities Limited 9% Invest and Finance Securities Limited 8%
Standard Capital Securities (Private) Limited 8% AKD Securities Limited 8%
Taurus Securities Limited 7% Taurus Securities Limited 8%
AKD Securities Limited 6% Foundation Securities (Private) Limited 7%
Alfalah Securities (Private) Limited 5% Standard Capital Securities (Private) Limited 6%
BMA Capital Management Limited 4% Top Line Securities (Private) Limited 6%
Foundation Securities (Private) Limited 4% JS Global Capital Limited 6%
Optimus Capital Management (Private) Limited 4% Arif Habib Securities Limited 5%
Summit Capital Market 4% Optimus Capital Management (Private) Limited 5%
Ismail Iqbal Securities (Private) Limited 4% BMA Capital Management Limited 4%
_______________________________________________Annual Report 2021 | 122

Aug 9, 2021 Sep 14, 2021
_______________________________________________Annual Report 2021 | 123

_______________________________________________Annual Report 2021 | 124
KSE-MEEZAN
INDEX FUND (KMIF)
KSE Meezan Index Fund is a Shariah Compliant
Index Fund that aims to provide investors an
opportunity to closely track the performance of
the KSE-Meezan Index 30 (KMI 30) by investing in
companies of the index in proportion to their
weightages.
ONE OF THE MOST
SOUGHT-AFTER
TOURIST DESTINATION
FUND INFORMATION
MANAGEMENT COMPANY
Phone (+9221) 35630722-6, 111-MEEZAN
Fax: (+9221) 35676143, 35630808


Syed Owais Wasti
AUDIT COMMITTEE


TRUSTEE
AUDITORS
SHARIAH ADVISER
Meezan Bank Limited
BANKERS TO THE FUND

Habib Metropolitan Bank Limited - Islamic
Banking Meezan Bank Limited
National Bank of Pakistan - Islamic Banking
LEGAL ADVISER
Bawaney & Partners
Phone (+9221) 35156191-94 Fax: (+9221) 35156195
TRANSFER AGENT
Phone (+9221) 35630722-6, 111-MEEZAN
Fax: (+9221) 35676143, 35630808
DISTRIBUTORS
Meezan Bank Limited
KSE Meezan Index Fund (KMIF)
Type of Fund
Open end index tracker fund
Objective
The objective of KMIF is to provide investors an opportunity to track the performance of the KSE-Meezan
Index 30 (KMI 30) by investing in companies of the Index in proportion to their weightages.

The performance of KMIF is linked directly to the performance of KSE-Meezan Index 30 (KMI 30). The
Fund Manager, Al Meezan Investment Management Limited, manages the fund with an aim to closely
track the returns of the index. The Fund Manager strives to completely match the weightages of the
constituent stocks of the index. Hence, this is a passively managed fund.
Sector Allocation as on 30th June 2021

Companies 22%
Pharmaceuticals 3%
Oil & Gas Marketing Companies
Power Generation &
6%
Distribution 8%
Refinery 2%
Pharmaceuticals 3%
Transport 1%
Fertilizer 14%
Textile Composite 1%
Cash and Other

Cement 19% Including receivables
21%
Performance Review
During FY21, KSE Meezan Index Fund (KMIF) provided a positive return of 36.43% to its investors while
KSE Meezan Index (KMI 30) appreciated 39.32% to close at 76,622 pts. On a gross basis, the fund’s return
was 2.83%.
KMIF KMI-30
Net Asset Value (NAV) as on June 30, 2020 53.41 54,995
KMIF posted a total Income of Rs. 753 million in the fiscal year 2021 as compared to a total income of Rs.
58 million last year. Total Income comprised of realized gain and unrealized capital gain on investments
of Rs. 210 million and Rs. 404 million respectively. Dividend income contributed Rs. 134 million to income,
while profit on saving accounts with banks amounted to Rs. 0.64 million. After accounting for expenses of
Rs. 60 million, the Fund posted a net Income of Rs. 693 million. The net assets of the Fund as at June 30,
2021 were Rs. 2,697 million as compared to Rs. 1,857 million at the end of last year depicting an Increase
of 45%. The net asset value per unit as at June 30, 2021 was Rs. 72.8711 as compared to Rs. 53.4129 per
unit as on June 30, 2020.
150
KMIF Benchmark
140
130
120
110
100
90
80
Jul-20
Nov-20
Jun-21
Aug-20
Dec-20
Apr-21
May-21
Sep-20
Jan-21
Feb-21
Mar-21
Oct-20
Charity Statement
representing income that is Haram. During the year ended June 30, 2021 an amount of Rs. 3.3 million was
Distributions
(As on June 30, 2021)
1 - 9,999 1,512
10,000 - 49,999 106
50,000 - 99,999 13
100,000 - 499,999 10
500,000 and above 9
Total 1,650

Number 1 1 0 0
PERFORMANCE TABLE
2021 2020 2019

Net assets (Rs in '000) (ex-distribution) 2,696,504 1,857,173 1,517,138
Offer price per unit as at June 30 (Rs.)
(ex-distribution) 74.7001 54.7536 54.2760
Distribution (%) N/A N/A N/A
Date of distribution N/A N/A N/A
Total return (%) 36.43 0.88 - 25.00
Average annual return (%) as at June 30, 2021 36.43 17.32 1.06
Past performance is not necessarily indicative of future performance and unit prices and investment
returns may go down, as well as up.
KSE MEEZAN INDEX FUND
AS AT JUNE 30, 2021
Note 2021 2020

-------Rupees in '000'-------
Assets
Investments 6 2,697,866 1,857,289
Receivable against sale of investments 24,234 -
Deposits and other receivables 7 2,684 2,632
Total assets 2,752,770 1,915,678
Liabilities
Payable to Al Meezan Investment Management Limited - Management Company 8 905 2,088
Payable to the Securities and Exchange Commission of Pakistan 10 489 342
Payable against conversion and redemption of units 1,923 497
Payable against purchase of investments 12,393 33,760
NET ASSETS 2,696,504 1,857,173
(Rupees)
For Al-Meezan Investment Management Limited

_____________________ _____________________ _____________________

_______________________________________________Annual Report 2021 | 135

INCOME STATEMENT
Note 2021 2020

-------Rupees in '000'-------
Income
Profit on saving accounts with banks 639 964
Net realised gain on sale of investments 209,906 63,384
Other income 4,494 2,686
349,080 156,964
classified as 'financial assets at fair value through profit or loss' 6.2 404,023 (98,500)
Total income 753,103 58,464
Expenses
Annual fees to Securities and Exchange Commission of Pakistan 10 489 342
Fee and subscription 561 572
Printing expense - 9
Bank and settlement charges 633 733
Provision for Sindh Workers' Welfare Fund 11.3 14,149 512
Net income for the year before taxation 693,285 25,110
Taxation 15 - -
Net income for the year after taxation 693,285 25,110

Income already paid on units redeemed (319,439) (6)
373,846 25,104
- Excluding capital gains - -
373,846 25,104

_____________________ _____________________ _____________________

_______________________________________________Annual Report 2021 | 136

2021 2020
-------Rupees in '000'-------
Total comprehensive income for the year 693,285 25,110

_____________________ _____________________ _____________________

_______________________________________________Annual Report 2021 | 137

STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUND
2021 2020
(Accumu-
lated Accumu-
Capital Capital
losses) / Total lated Total
value value
undistribut losses
ed income
-------------------------------------------------(Rupees
-------------------------------------------------(Rupees
in '000)-------------------------------------------------
in '000)------------------------------------------
Net assets at the beginning of the year 2,094,337 (237,164) 1,857,173 1,779,406 (262,268) 1,517,138
Issuance of 39,326,660 units (2020: 20,373,779 units)

the beginning of the year) 2,100,551 - 2,100,551 1,078,730 - 1,078,730
- Element of income 640,390 - 640,390 47,413 - 47,413

beginning of the year) 1,981,246 - 1,981,246 754,896 - 754,896
- Element of loss 294,210 319,439 613,649 56,316 6 56,322
Total payments on redemption of units 2,275,456 319,439 2,594,895 811,212 6 811,218
Total comprehensive income for the year - 693,285 693,285 - 25,110 25,110
Distribution during the year - - - - - -
Net income for the year less distribution - 693,285 693,285 - 25,110 25,110
Net assets at the end of the year 2,559,822 136,682 2,696,504 2,094,337 (237,164) 1,857,173

- Realised (loss) / income (138,664) 184,604
- Unrealised loss (98,500) (446,872)
(237,164) (262,268)
373,846 25,104
Distribution during the year - -
Undistributed income / (accumulated losses) carried forward 136,682 (237,164)
Undistributed income / (accumulated losses) carried forward

- Realised loss (267,341) (138,664)
136,682 (237,164)
(Rupees) (Rupees)
Net asset value per unit at the beginning of the year 53.4129 52.9470
Net asset value per unit at the end of the year 72.8711 53.4129

_____________________ _____________________ _____________________

_______________________________________________Annual Report 2021 | 138

CASH FLOW STATEMENT
Note 2021 2020

-------Rupees in '000'-------
Adjustments for:
classified as 'financial assets at fair value through profit or loss' (404,023) 98,500
289,262 123,610
Investments - net (460,788) (432,913)
Deposits and other receivables (52) 124
(456,718) (431,072)
(Decrease) / increase in liabilities
Payable to Al Meezan Investment Management Limited - Management Company (1,183) 581
Payable to Central Depository Company of Pakistan Limited - Trustee 90 30
Payable to the Securities and Exchange Commission of Pakistan 147 (1,222)
Payable against purchase of investments (21,367) (10,910)
(3,665) (9,247)
Net cash used in operating activities (171,121) (316,709)

Payment against redemption and conversion of units (2,593,469) (810,995)
Net cash generated from financing activities 147,420 354,124
Net (decrease) / increase in cash and cash equivalents during the year (23,701) 37,415

_____________________ _____________________ _____________________

_______________________________________________Annual Report 2021 | 139

1.1 KSE Meezan Index Fund (the Fund) was established under a Trust Deed executed between Al Meezan Investment
Management Limited as Management Company and Central Depository Company of Pakistan Limited (CDC) as
Trustee. The Trust Deed was executed on March 13, 2012 and was approved by the Securities and Exchange
Commission of Pakistan (SECP) under the Non-Banking Finance Companies (Establishment and Regulation) Rules,
2003, (NBFC Rules) and the Non-Banking Finance Companies and Notified Entities Regulations, 2008, (NBFC
Regulations, 2008). The Management Company has been licensed by Securities and Exchange Commission of
Pakistan (SECP) to act as an Asset Management Company under the Non-Banking Finance Companies
(Establishment and Regulations) Rules, 2003, (the NBFC Rules) through a certificate of registration issued by SECP.
The registered office of the Management Company of the Fund is situated at Ground Floor, Block 'B', Finance and
Trade Centre, Shahrah-e-Faisal, Karachi, 74400, Pakistan.
1.2 The Fund is a Shariah Compliant Index Fund that aims to provide investors an opportunity to track closely the
performance of the KSE-Meezan Index 30 (KMI 30) by investing in companies of the index in proportion to their
weightages. Under the Trust Deed, all the conducts and acts of the Fund are based on Shariah. The Management
Company has appointed Meezan Bank Limited (MBL) as its Shariah Advisor to ensure that the activities of the Fund
are in compliance with the principles of Shariah.
1.3 The Fund is an open-end fund listed on Pakistan Stock Exchange Limited. Units are offered for public subscription on
a continuous basis. The units are transferable and be redeemed by surrendering them to the Fund. The Fund is
categorized as a Shariah Compliant Index Fund.
1.4 The title to the assets of the Fund are held in the name of Central Depository Company of Pakistan Limited (CDC) as
the Trustee of the Fund.
processes.
1.6 The Trust Act, 1882 has been repealed due to promulgation of Provincial Trust Act “Sindh Act 2020” as empowered
under the Eighteenth Amendment to the Constitution of Pakistan. Various new requirements including registration
under the Trust Act have been introduced. The Management Company after fulfilling the requirement for registration of
Trust Deed under Sindh Act 2020, has submitted Collective Investment Scheme Trust Deed to Registrar acting under
Sindh Act 2020 for registration.
issued by the Shariah Advisor and are accounted for on substance rather than the form prescribed by the earlier
referred guidelines. This practice is being followed to comply with the requirements of the accounting and reporting
standards as applicable in Pakistan.
- Provisions of and directives issued under the Companies Act 2017, along with part VIIIA of the repealed
_______________________________________________Annual Report 2021 | 140

There are certain amendments to the standards and interpretations that are mandatory for the Fund's accounting
period beginning on or after July 1, 2020 but are considered not to be relevant or do not have any significant effect on
the Fund's operations and are, therefore, not disclosed in these financial statements.
effective
The following amendments would be effective from the dates mentioned below against the respective amendment:
Effective date (accounting

Amendments periods beginning on or after)
- IAS 1 - 'Presentation of financial statements' (amendment) January 1, 2023
- IAS 8 - 'Accounting policies, change in accounting
estimates and errors' (amendment) January 1, 2023
These amendments may impact the financial statements of the Fund on adoption. The Management is currently in the
process of assessing the full impact of these amendments on the financial statements of the Fund.
There are certain other standards, amendments and interpretations that are mandatory for the Fund's accounting
period beginning on or after July 1, 2021 but are considered not to be relevant or will not have any significant effect on
the Fund's operations and are therefore not disclosed in these financial statements.
Pakistan requires the management to make judgements, estimates and assumptions that affect the application of
policies and reported amounts of assets and liabilities, income and expenses. The estimates, judgements and
judgements about carrying values of assets and liabilities. The estimates and underlying assumptions are reviewed on
years.
The estimates and judgements that have a significant effect on the financial statements of the Fund relate to
classification, valuation and impairment of financial assets (notes 4.3 and 6).
These financial statements have been prepared under the historical cost convention except for investments classified
as 'at fair value through profit or loss' which are measured at their respective fair values.
which the Fund operates. These financial statements are presented in Pakistani Rupee, which is the Fund's functional
policies have been applied consistently to all the years presented.
These comprise balances with banks in savings and current accounts, cheques in hand and other short-term highly
liquid investments with original maturities of three months or less.
_______________________________________________Annual Report 2021 | 141

4.3.1.1 Equity instruments
initial recognition to measure the investment at Fair Value through Other Comprehensive Income (FVOCI). The
management considers its investment in equity securities being managed as a group of assets and hence has
classified them as FVPL. Accordingly, the irrevocable option has not been considered.
4.3.2 Impairment
The fund assesses on a forward looking basis the expected credit loss (ECL) associated with its financial assets (other
than debt instruments) carried at amortised cost and FVOCI. The fund recognises loss allowances for such losses at
each reporting date. The measurement of ECL reflects:
4.3.5 Derecognition
Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have
been transferred and the Fund has transferred substantially all risks and rewards of ownership. Any gain or loss on
derecognition of financial assets is taken to the Income Statement.
4.3.6 Derivatives
_______________________________________________Annual Report 2021 | 142

4.6 Provisions
best estimate.
distributors receive redemption applications during business hours of that day. The redemption price is equal to NAV
as of the close of the business day, less an amount as the Management Company may consider to be an appropriate
Management Company. Based on the Mutual Funds Association of Pakistan's (MUFAP) guidelines duly consented by
the SECP, distribution for the year also includes portion of income already paid on units redeemed during the year.
redeemed
Element of income represents the difference between Net Asset Value per unit on the issuance or redemption date, as
the case may be, of units and the net assets value per unit at the beginning of the relevant accounting period. Further,
the element of income is a transaction of capital nature and the receipt and payment of element of income is taken to
unit holders' fund. However, to maintain the same ex-dividend net asset value of all units outstanding on the
accounting date, net element of income contributed on issue of units lying in unit holders fund is refunded on units in
the same proportion as dividend bears to accounting income available for distribution.
- Gains / (losses) arising on sale of investments are included in the Income Statement, on the date when the
- Unrealised gains / (losses) arising on re-measurement of investments classified as financial assets 'at fair value
through profit or loss' are included in the Income Statement in the period in which they arise.
- Profit on saving accounts with bank is recognised on a time proportion basis using the effective yield method.
_______________________________________________Annual Report 2021 | 143

4.12 Expenses
of SECP are recognised in the Income Statement on an accrual basis.
4.13 Taxation
Current
Deferred
differences, unused tax losses and tax credits can be utilized. Deferred tax is calculated at the rates that are expected
reduced by capital gains, whether realised or unrealised, is distributed amongst the unitholders. Provided that, for the
Schedule to the Income Tax Ordinance, 2001. Moreover, super tax introduced in the Finance Act, 2015, is also not
Earnings / (loss) per unit is calculated by dividing the net profit / loss of the year after taxation of the Fund by the
Earnings / (loss) per unit has not been disclosed as, in the opinion of the management, the determination of
5 BALANCES WITH BANKS Note 2021 2020

-------Rupees in '000'-------
Current accounts 4,657 2,791
22,649 46,350
5.1 The balances in saving accounts have expected profit rates ranging from 1.50% to 2.50% per annum (2020: 1.5% to
3.00% per annum).
Note 2021 2020

6 INVESTMENTS -------Rupees in '000'-------
At fair value through profit or loss

Investment in equity securities - listed 6.1 2,697,866 1,857,289
_______________________________________________Annual Report 2021 | 144

6.1 Investments in equity securities - listed
Unrealised
Paid-up
appreciati
capital of Total
Purchases Carrying value Market value on / Net
As at July 1, Rights / Sales during As at June 30, investee market
during the as at June 30, as at June (diminutio assets
Name of the investee company 2020 Bonus issue the year 2021 company value of
year 2021 30, 2021 n) as at of the
invest-
(with face
June 30, Fund
value of ments
2021
investment)
-------------------------- Number of shares -------------------------- -------------------------- (Rupees in '000) --------------------------
--------------------------% --------------------------
Sectors / companies
Honda Atlas Cars (Pakistan) Limited 71,200 49,500 - 40,600 80,100 18,791 27,697 8,906 1.03 0.06 1.03
Millat Tractors Limited 50,412 34,910 8,641 15,110 78,853 55,786 85,131 29,345 3.16 0.16 3.16
Ghandhara Industries - 35,700 - - 35,700 10,163 9,961 (202) 0.37 0.08 0.37
Indus Motor Company Limited - 48,300 - 48,300 - - - - - - -
Pak Suzuki Motor Company Limited 43,800 - - 43,800 - - - - - - -
4.55 0.30 4.55
Bank
Meezan Bank Limited (an associate of the Fund) 739,701 458,578 93,570 296,036 995,813 69,884 114,927 45,043 4.26 0.07 4.26
4.26 0.07 4.26
Cable And Electrical Goods
Pak Elektron Limited 580,803 367,000 - 249,000 698,803 18,705 24,500 5,795 0.91 0.13 0.91
0.91 0.13 0.91
Cement
D.G. Khan Cement Company Limited 518,500 297,715 - 200,104 616,111 57,532 72,652 15,120 2.69 0.14 2.69
Fauji Cement Company Limited 1,793,875 969,700 - 631,700 2,131,875 38,620 49,033 10,413 1.82 0.15 1.82
Kohat Cement Company Limited - 204,500 - 204,500 - - - - - - -
Cherat Cement Company Limited - 433,200 - 104,999 328,201 36,783 58,216 21,433 2.16 0.17 2.16
Maple Leaf Cement Factory Limited 453,336 1,363,692 - 426,389 1,390,639 42,833 65,332 22,499 2.42 0.13 2.42
19.29 0.69 19.28
Chemical
Engro Polymer & Chemicals Limited 806,271 394,500 - 306,500 894,271 27,084 42,245 15,161 1.57 0.10 1.57
ICI Pakistan Limited - 50,800 - 50,800 - - - - - - -
Lotte Chemical Pakistan Limited 933,000 336,500 - 1,269,500 - - - - - - -
1.57 0.10 1.57
Engineering
International Industries Limited - 225,900 - 22,100 203,800 34,265 43,006 8,741 1.59 0.15 1.59
International Steels Limited 366,901 218,407 - 155,595 429,713 27,226 40,139 12,913 1.49 0.10 1.49
3.08 0.25 3.08
Fertilizer
Engro Corporation Limited 882,322 432,004 - 422,769 891,557 266,864 262,662 (4,202) 9.74 0.15 9.74
Engro Fertilizers Limited 1,773,818 446,751 - 529,962 1,690,607 103,549 118,799 15,250 4.41 0.13 4.40
14.15 0.28 14.14
Food And Personal Care
Frieslandcampina Engro Pakistan Limited 219,500 - - 219,500 - - - - - - -
Unity Foods Limited 384,000 1,944,358 - 792,822 1,535,536 32,856 68,362 35,506 2.54 0.15 2.53
2.54 0.15 2.53
Investment Banks / Investment
Companies / Securities Companies
Daw ood Hercules Corporation Limited 941,400 - - 941,400 - - - - - - -
- - -
Oil And Gas Exploration Companies
Oil & Gas Development Company Limited 1,671,781 684,805 - 543,351 1,813,235 196,792 172,312 (24,480) 6.39 0.04 6.39
Pakistan Petroleum Limited (note: 6.1.2) 1,633,791 796,962 - 556,175 1,874,578 166,559 162,770 (3,789) 6.04 0.07 6.03
22.01 0.30 22.00
Oil And Gas Marketing Companies
Hascol Petroleum Limited 471 1,991,385 - 1,991,385 471 7 4 (3) 0.00 0.00 0.00
Sui Northern Gas Pipelines Limited 704,333 359,159 - 260,985 802,507 43,383 38,986 (4,397) 1.45 0.13 1.45
Sui Southern Gas Company Limited 741,231 - 741,231 - - - - - - -
6.38 0.25 6.38
_______________________________________________Annual ReportPaid-up
Unrealised 2021 | 145
Hascol Petroleum Limited 471 1,991,385 - 1,991,385 471 7 4 (3) 0.00 0.00 0.00
Sui Northern Gas Pipelines Limited 704,333 359,159 - 260,985 802,507 43,383 38,986 (4,397) 1.45 0.13 1.45
Sui Southern Gas Company Limited 741,231 - 741,231 - - - - - - -
6.38 0.25 6.38

Paid-up
appreciati
capital of Total
Purchases Carrying value Market value on / Net
As at July 1, Rights / Sales during As at June 30, investee market
during the as at June 30, as at June (diminutio assets
Name of the investee company 2020 Bonus issue the year 2021 company value of
year 2021 30, 2021 n) as at of the
(with face invest-
June 30, Fund
value of ments
2021
investment)
-------------------------- Number of shares -------------------------- -------------------------- (Rupees in '000) --------------------------
--------------------------% --------------------------
Paper & Board

Packages Limited - 77,550 - 77,550 - - - - - - -
- - -
Pharmaceuticals
Glaxosmithkline Pakistan Limited - 182,600 - 182,600 - - - - - - -
Abbott Laboratories (Pakistan) Limited - 72,650 - 72,650 - - - - - - -
2.73 0.14 2.73
Power Generation & Distribution
K-Electric Limited (note 6.1.1) 6,085,040 3,666,000 - 9,751,040 - - - - - - -
The Hub Pow er Company Limited 2,421,050 2,736,859 - 2,421,050 2,736,859 222,900 218,046 (4,854) 8.09 0.21 8.08
8.09 0.21 8.08
Refinery
Attock Refinery Limited 118,992 115,547 - 114,483 120,056 16,066 30,788 14,722 1.14 0.11 1.14
National Refinery Limited - 170,200 - 96,800 73,400 39,296 38,402 (894) 1.42 0.09 1.42
2.57 0.20 2.56
Technology & Communication
Systems Limited - 474,500 - 245,500 229,000 125,532 128,290 2,758 4.76 0.18 4.76
Avanceon Limited - 170,000 - 1,500 168,500 15,435 15,448 13 0.57 0.07 0.57
Netsol Technologies Limited 81,900 90,000 - 171,900 - - - - - - -
5.33 0.25 5.33
Textile Composite
Nishat Mills Limited 393,900 247,250 - 196,600 444,550 38,272 41,477 3,205 1.54 0.13 1.54
1.54 0.13 1.54
Transport
Pakistan International Bulk Terminal Limited - 2,510,000 - - 2,510,000 29,502 28,564 (938) 1.06 0.14 1.06
1.06 0.14 1.06
Total as at June 30, 2021 2,293,843 2,697,866 404,023

Total as at June 30, 2020 1,955,789 1,857,289 (98,500)
6.1.1 All shares have a face value of Rs 10 each except for the shares of K-Electric Limited which have a face value of Rs
3.5.
6.1.2 Investments include 682,000 shares (2020: 682,000 shares) of Pakistan Petroleum Limited and 80,000 shares of Oil &
Gas Development Company Limited having market value of Rs 59.218 million and Rs. 7.602 million as at June 30,
2021 (2020: Rs 59.184 million), which have been pledged with National Clearing Company of Pakistan Limited for
guaranteeing settlement of the Fund's trades in accordance with Circular No. 11 dated October 23, 2007 issued by the
SECP.
applicable on bonus shares received by CISs. A stay order had been granted by the Honourable High Court of Sindh in
favour of CISs.
_______________________________________________Annual Report 2021 | 146

During the year ended June 30, 2018, the Supreme Court of Pakistan passed a judgement on June 27, 2018 whereby
during the year ended June 30, 2019. During the year ended June 30, 2020, the CISs have filed a fresh constitutional
petition via CP 4653 dated July 11, 2019. In this regard, on July 15, 2019, the Honourable High Court of Sindh has
issued notices to the relevant parties and has ordered that no third party interest on bonus shares issued to the Funds
in lieu of their investments be created in the meantime. The matter is still pending adjudication and the Funds have
included these shares in their portfolio, as the management is confident that the decision of the constitutional petition
will be in favour of the CISs.
As at June 30, 2021, the bonus shares of the Fund withheld by certain companies at the time of declaration of bonus
shares amounted to Rs. 1.416 million (2020: Rs. 1.160 million).
Note 2021 2020

6.2 Net unrealised appreciation / (diminution) on re-measurement -------Rupees in '000'-------
of investments classified as 'financial assets at fair value
through profit or loss'

Less: Carrying value of investments 6.1 2,293,843 1,955,789
404,023 (98,500)
7 DEPOSITS AND OTHER RECEIVABLES
Profit receivable on saving account 81 29

Security deposit with Central Depository
Company of Pakistan Limited 103 103
Security deposit with the National Clearing
Company of Pakistan Limited 2,500 2,500
2,684 2,632
8 PAYABLE TO AL MEEZAN INVESTMENT MANAGEMENT

LIMITED - MANAGEMENT COMPANY
Management fee payable 8.1 155 1,511

Sindh Sales Tax on management fee payable 8.2 20 196
905 2,088
8.2 During the year, an amount of Rs. 3.178 million (2020: Rs 2.224 million) was charged on account of sales tax on
management fee levied through the Sindh Sales Tax on Services Act, 2011, and an amount of Rs. 3.354 million (2020:
Rs. 2.187 million) has been paid to the Management Company which acts as a collecting agent.
Scheme (CIS).
The management company based on its own discretion has charged allocated expenses at the rate of 0.1% from July
1, 2020 till March 9, 2021 and at 0.11% from March 10, 2021 till June 30, 2020 (2020: 0.1%) of average annual net
assets during the year.
_______________________________________________Annual Report 2021 | 147

9 PAYABLE TO CENTRAL DEPOSITORY COMPANY OF Note 2021 2020
PAKISTAN LIMITED - TRUSTEE -------Rupees in '000'-------

349 259
deed as follows:
Net Assets (Rs.) Fee

up to Rs 1,000 million Rs 0.7 million or 0.2% per annum of net assets, whichever is higher.
from Rs 1,000 million and above Rs 2.0 million plus 0.10% per annum of net assets exceeding Rs 1,000 million.
10 PAYABLE TO THE SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN
In accordance with the NBFC Regulations, 2008, a collective investment scheme classified as an index tracker is
required to pay annual fee to the Securities and Exchange Commission of Pakistan at the rate of 0.02% (2020: 0.02%)
per annum of average annual net assets of the Fund.
Note 2021 2020

11 ACCRUED EXPENSES AND OTHER LIABILITIES -------Rupees in '000'-------

Sindh Sales Tax on management fee 11.1 5,741 5,741
Sindh Sales Tax on sales load 11.1 497 497
Withholding tax payable 932 266
Zakat payable 52 11
39,954 21,466
Management Companies (AMCs) as a result of which FED at the rate of 16 percent on the remuneration of the
Management Company and sales load was applicable with effect from June 13, 2013. The Management Company was
of the view that since the remuneration was already subject to provincial sales tax, further levy of FED would result in
double taxation which did not appear to be the spirit of the law. Hence, on September 4, 2013 a constitutional petition
was filed with the Sindh High Court (SHC) by the Management Company together with various other asset
management companies challenging the levy of FED.
financial statements of the Fund as the matter is pending before the Supreme Court of Pakistan. Had the provision not
been made, the NAV per unit of the Fund would have been higher by Re 0.17 (2020: Re 0.18) per unit.
_______________________________________________Annual Report 2021 | 148

During the year ended June 30, 2021, non-shariah compliant income amounting to Rs 3.327 million (2020: Rs. 2.972
million) was charged as an expense in the books of the Fund, and Rs. 1.500 million was disbursed to following
S. Amount
No. Rupees in '000
1 Edhi Foundation 500
2 Chippa Welfare - Association 500
3 Darus Shifa - Foundation 500
Total 1,500
caution, provision in respect of SWWF should be made on a prudent basis with effect from the date of enactment of
the SWWF Act, 2014 (i.e. starting from May 21, 2015).
2021 2020
13 AUDITORS' REMUNERATION -------Rupees in '000'-------

Half yearly review of condensed interim financial statements 106 100
Fee for other certifications 60 40
426 370
The Total Expense Ratio (TER) of the Fund as at June 30, 2021 is 2.45% (2020: 1.95%) which includes 0.78% (2020:
0.23%) representing government levies on the Fund such as provision for Sindh Workers' Welfare Fund, sales taxes,
federal excise duties, annual fee to the SECP, etc. This ratio is within the maximum limit of 2.5% prescribed under the
NBFC Regulations for a collective investment scheme categorised as an Index Scheme.
15 TAXATION
as per Regulation 63 of the Non-Banking Finance Companies and Notified Entities Regulations, 2008, the Fund is
required to distribute not less than 90% of its accounting income for the year derived from sources other than capital
gains as reduced by such expenses as are chargeable thereon to the unitholders. Since the management has
distributed the required minimum percentage of income earned by the Fund for the year ended June 30, 2021 to the
unitholders in the manner as explained above, no provision for taxation has been made in these financial statements
during the year.
Schedule to the Income Tax Ordinance, 2001. Moreover, super tax introduced in Finance Act, 2015 is also not
applicable on Funds as per Income Tax Ordinance, 2001.
_______________________________________________Annual Report 2021 | 149

16.1 Connected persons include Al Meezan Investment Management Limited being the Management Company, the Central
Depository Company of Pakistan Limited being the Trustee, other collective investment schemes managed by the
Management Company, any entity in which the Management Company, its CISs or their connected persons have
material interest, any person or company beneficially owning directly or indirectly ten percent or more of the capital of
the Management Company or the net assets of the Fund, directors and their close family members and key
management personnel of the Management Company.
16.2 Transactions with connected persons are executed on an arm's length basis and essentially comprise sale and
redemption of units, fee on account of managing the affairs of the Fund, sales load, other charges and distribution
payments to connected persons. The transactions with connected persons are in the normal course of business, at
contracted rates and at terms determined in accordance with market rates.
16.3 Remuneration to the Management Company of the Fund is determined in accordance with the provisions of the NBFC
Regulations, 2008 and the Trust Deed.
16.4 Remuneration to the Trustee of the Fund is determined in accordance with the provisions of the Trust Deed.
16.5 The details of transactions carried out by the Fund with connected persons during the year and balances with them as
Balances 2021 2020

-------Rupees in '000'-------
Management fee payable 155 1,511
Sindh Sales Tax on management fee payable 20 196
Outstanding 13,952,768 units (2020: 12,467,051 units) 1,016,754 665,901
Central Depository Company of Pakistan Limited (CDC) - Trustee

Trustee fee payable 289 210
Sindh Sales Tax payable on trustee fee 60 49
Security Deposit 103 103
Meezan Bank Limited

Bank balance 16,436 8,068
Outstanding 2,113,224 units (2020: 2,113,224 units) 153,993 112,873
Investment in 995,813 shares (2020: 739,301 shares) 114,927 50,928
Directors, their close family members and key management

personnel of the management company
Outstanding 1,136,665 units (2020: 626,396 units) 82,830 33,458
Unitholders holding 10% or more units of the Fund

Investment as at June 30, 2021: 9,725,890 units (2020: 9,725,888 units) 708,736 519,488
Al Meezan Investment Management Limited - Gratuity Fund

Investment as at June 30, 2021: 133,559 units (2020: 133,559 units) 9,733 7,134
Meezan Strategic Allocation Fund MSAP-I

Investment as at June 30, 2021: 70,737 units (2020: 4,311 units) 5,155 230
Meezan Strategic Allocation Fund MSAP-II

_______________________________________________Annual Report 2021 | 150

2021 2020
-------Rupees in '000'-------
Meezan Strategic Allocation Fund MSAP-III
Meezan Strategic Allocation Fund MSAP-IV

Investment as at June 30, 2021: 13,634 units (2020: 396,682 units) 994 21,188
Meezan Strategic Allocation Fund MSAP-V


Transactions during the year 2021 2020
-------Rupees in '000'-------
Remuneration of Al Meezan Investment Management Limited
- Management Company 24,442 17,105
Issue of 15,116,866 units (2020: 7,015,589 units) 1,077,794 360,600
Central Depository Company of Pakistan Limited (CDC) - Trustee

Remuneration of Central Depository Company of Pakistan Limited - Trustee 3,443 2,711
CDS charges 145 117
Meezan Bank Limited

Profit on saving accounts with banks 196 489
Shariah advisor fee 534 544
Purchase of 458,578 shares (2020: 956,600 shares) 39,089 77,697
Bonus of 93,570 shares (2020: nil shares) - -
Sale of 296,036 shares (2020: 216,899 shares) 30,844 19,100
Directors, their close family members and key management

personnel of the Management Company
Issue of 527,477 units (2020: 608,497 units) 37,885 40,915
Redemption of 134,338 units (2020: 1,026 units) 9,448 55
Meezan Strategic Allocation Fund MSAP-I

Issue of 70,737 units (2020: nil units) 5,000 -
Redemption of 4,311 units (2020: 197,269 units) 307 10,000
Meezan Strategic Allocation Fund MSAP-II

Redemption of 345,606 units (2020: nil units) 24,758 -
Meezan Strategic Allocation Fund MSAP-III

Meezan Strategic Allocation Fund MSAP-IV

Meezan Strategic Allocation Fund MSAP-V

16.6 Other balances due to / from related parties / connected persons are included in the respective notes to the financial
statements.
_______________________________________________Annual Report 2021 | 151

17 FINANCIAL INSTRUMENTS BY CATEGORY ----------------------------------------- 2021 ------------------------------------------
At fair value
At amortised
through profit or Total
cost
loss
----------------------------- Rupees in '000'-----------------------------
Financial assets
Investments - 2,697,866 2,697,866
54,904 2,697,866 2,752,770
-------------------- 2021 --------------------

At fair value
At amortised
cost
or loss
-------------------- Rupees in '000' --------------------
Payable to Al Meezan Investment Management Limited -
Management Company - 905 905
Payable to Central Depository Company of Pakistan Limited - Trustee - 349 349
- 24,624 24,624
------------------------------- 2020 --------------------------------

At fair value
At amortised
through profit or Total
cost
loss
----------------------------- Rupees in '000'-----------------------------
Financial assets
Investments - 1,857,289 1,857,289
58,389 1,857,289 1,915,678
-------------------- 2020 --------------------

At fair value
At amortised
cost
or loss
-------------------- Rupees in '000' --------------------
Management Company - 2,088 2,088
Payable against conversion and redemption of units - 497 497
- 41,866 41,866
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, the constitutive documents of the Fund 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 the Fund is willing to accept. The Board of Directors of the Management Company
supervises the overall risk management approach within the Fund. The Fund is exposed to market risk, liquidity risk
and credit risk arising from the financial instruments it holds.
_______________________________________________Annual Report 2021 | 152

18.1 Market risk
Market risk comprises of three types of risks: yield / profit rate risk, currency risk, and price risk.
(i) Yield / profit rate risk
Yield / profit rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate as a
result of changes in market profit rates. As of June 30, 2021, the Fund is exposed to such risk on its balances
held with banks. The Investment Committee of the Fund reviews the portfolio of the Fund on a regular basis to
ensure that the risk is managed within the acceptable limits.
basis points increase/decrease in applicable rates on the last repricing date with all other variables held constant,
the net income / loss for the year and net assets of the Fund would have been higher/lower by Rs.0.0150 million
(2020: Rs. 0.0370 million).
The composition of the Fund's investment portfolio, KIBOR rates and the rates announced by the Financial Markets
Association of Pakistan are expected to change over time. Accordingly, the sensitivity analysis prepared as of June 30,
2021 is not necessarily indicative of the impact on the Fund's net assets of future movements in profit rates.
Yield / profit rate sensitivity position for on-balance sheet financial instruments is based on the earlier of contractual
repricing or maturity date and for off-balance sheet instruments is based on the settlement date.
------------------------------------------------------------ 2021 ------------------------------------------------------------

Not
Effective More than
exposed to
profit rate Up to three three months More than Total
yield / profit
(%) months and up to one year
rate risk
one year
----------------------------------- Rupees in '000' -----------------------------------
Financial assets
Investments - - - 2,697,866 2,697,866
17,992 - - 2,734,778 2,752,770
- Management Company - - - 905 905
Pakistan Limited - Trustee - - - 349 349
- - - 24,624 24,624
------------------------------------------------------------ 2020 ------------------------------------------------------------

Not
_______________________________________________Annual
Effective More than Report 2021 | 153
exposed to
------------------------------------------------------------ 2020 ------------------------------------------------------------

Not
Effective More than
exposed to
yield / profit
rate risk
one year
----------------------------------- Rupees in '000' -----------------------------------
Financial assets
Investments - - - 1,857,289 1,857,289
43,559 - - 1,872,119 1,915,678
Payable against conversion and redemption of units - - - 497 497
- - - 41,866 41,866
(ii) Currency risk
(iii) Price risk
Equity price risk is the risk that the fair value of equity instruments decreases as a result of changes in the level
of equity indices and the value of individual stocks.
total comprehensive income of the Fund for the year would increase / decrease by Rs. 26.979 million (2020: Rs.
18.573 million) and the net assets of the Fund would increase / decrease by the same amount as a result of
gains / losses on equity securities classified as financial assets at fair value through profit or loss.
the index. This represents management's best estimate of a reasonable possible shift in the KMI-30 Index,
correlation thereof to the KMI-30 Index, is expected to change over time. Accordingly, the sensitivity analysis
movements in the level of the KMI-30 Index.
18.2 Liquidity risk
_______________________________________________Annual Report 2021 | 154

As per the NBFC Regulations, 2008, the Fund can borrow in the short-term to ensure settlement the maximum limit of
year.
-------------------------------------------------------------------------------- 2021 --------------------------------------------------------------------------------

More than More than More than Financial
Within 1 one month three months one year and More than 5 instruments
Total
month and upto and upto one upto five years with no fixed
three months year years maturity
--------------------------------------------------------------------------------- Rupees in '000' ---------------------------------------------------------------------------------
Financial assets
Investments - - - - - 2,697,866 2,697,866
Deposits and other receivables 81 - - - - 2,603 2,684
52,301 - - - - 2,700,469 2,752,770
Limited - Management Company 905 - - - - - 905
Pakistan Limited - Trustee 349 - - - - - 349
Accrued expenses and other liabilities 8,801 - - - - - 8,801
24,624 - - - - - 24,624
Net assets / (liabilities) 27,677 - - - - 2,700,469 2,728,146
-------------------------------------------------------------------------------- 2020 --------------------------------------------------------------------------------

Total
--------------------------------------------------------------------------------- Rupees in '000' ---------------------------------------------------------------------------------
Financial assets
Investments - - - - - 1,857,289 1,857,289
Deposits and other receivables 29 - - - - 2,603 2,632
55,786 - - - - 1,859,892 1,915,678
Payable against conversion and redemption of units 497 - - - - - 497
41,866 - - - - - 41,866
Net assets / (liabilities) 13,920 - - - - 1,859,892 1,873,812
_______________________________________________Annual Report 2021 | 155

18.3 Credit risk
2021 2020
Maximum Maximum
------------------------------------------ Rupees in '000 ------------------------------------------
Balances with banks 22,649 22,649 46,350 46,350

Investments 2,697,866 - 1,857,289 -
Receivable against sale of investments 24,234 24,234 - -
Deposits and other receivables 2,684 2,684 2,632 2,632
2,752,770 54,904 1,915,678 58,389
The maximum exposure to credit risk before any credit enhancement as at June 30, 2021 is the carrying amount of the
financial assets.
controls established in the settlement process. The Fund's policy is to enter into financial contracts in accordance with
account of its placements in banks and mark-up accrued thereon, cheques in hand, dividend receivable and receivable
against sale of units and against investments. The credit rating profile of balances with banks is as follows:
2021 2020
AAA 73.00 -
AA+ 27.00 100.00
100.00 100.00
_______________________________________________Annual Report 2021 | 156

------------------------- 2021 -------------------------

--------------------------------------------------------- Rupees in '000 --------------------------------------
Financial assets
2,697,866 - -
------------------------- 2020 -------------------------

--------------------------------------------------------- Rupees in '000 --------------------------------------
Financial assets
1,857,289 - -
2008 every open end scheme shall maintain fund size (i.e. net assets of the Fund) of Rs 100 million at all times during
the life of the scheme. The Fund has historically maintained and complied with the requirement of minimum fund size
at all times.
------------------------- 2021 ------------------------- ------------------------- 2020 -------------------------

Category Number of amount Percentage Number of amount Percentage
'000) '000)
Individuals 1,630 422,656 15.67 1,077 304,803 16.41

Associated Companies /
Directors 8 1,139,691 42.27 8 837,672 45.11
Retirement Funds 5 85,657 3.18 6 62,275 3.35
Others 7 1,048,500 38.88 6 652,423 35.13
1,650 2,696,504 100.00 1,097 1,857,173 100.00
--------------------- 2021 --------------------- --------------------- 2020 ---------------------

Percentage of
Percentage of
commission paid
paid
Alfalah Securities (Private) Limited 5.45 Shajar Capital Pakistan (Private) Limited 9.47
Vector Capital (Private) Limited 5.17 BMA Capital Management Limited 8.27
Intermarket Securities Limited 5.10 AKD Securities Limited 7.78
Arif Habib Limited 5.04 Vector Capital (Private) Limited 7.65
Taurus Securities Limited 4.84 Aba Ali Habib Securities (Private) Limited 6.82
Summit Capital Market 4.64 Optimus Capital Management (Private) Limited 6.66
Ismail Iqbal Securities (Private) Limited 4.64 Insight Securities (Private) Limited 5.80
Next Capital Limited 4.57 Topline Securities (Private) Limited 5.79
Spectrum Securities (Private) Limited 4.57 Standard Capital Securities (Private) Limited 5.07
Optimus Capital Management (Private) Limited 4.46 Fortune Securities (Private) Limited 5.04
_______________________________________________Annual Report 2021 | 157

Overall
Name Designation Qualification
experience
Mr. Mohammad Shoaib Chief Executive Officer CFA / MBA Thirty One years
Mr. Muhammad Asad Chief Investment Officer CFA level II / MBA Twenty Five years
Mr. Akhtar Munir Head of Risk Management CFA Level II / MBA, ACCA, FRM, FCMA Twelve years
The Fund manager of the Fund is Mr. Asif Imtiaz. Other funds being managed by the Fund manager are as follows :
- Meezan Balanced Fund

- Meezan Asset Allocation Fund
- Meezan Financial Planning Fund of Fund
- Meezan Strategic Allocation Fund
- Meezan Strategic Allocation Fund-II
- Meezan Strategic Allocation Fund-III ;and
- Meezan Dedicated Equity Fund
24 MEETINGS OF BOARD OF DIRECTORS OF THE MANAGEMENT COMPANY
The dates of the meetings of the Board of Directors of the Management Company of the Fund and the attendance of
its members are given below:
Meeting held on
Name of Directors Designation August September October February April 12, June 21,
13, 2020 17, 2020 21, 2020 15, 2021 2021 2021
Mr. Ariful Islam Chairman Yes Yes Yes Yes Yes Yes
Mr. Mohammad Shoaib, CFA Chief Executive Officer Yes Yes Yes Yes Yes Yes
Mr. Muhammad Abdullah Director Yes Yes Yes Yes Yes Yes
Mr. Ijaz Farooq Director Yes No No - - -
Mr. Moin M. Fudda Director Yes Yes Yes Yes Yes Yes
Ms. Saima Shaukat Khan (Kamila) Director Yes Yes Yes - - -
Mr. Furquan Kidw ai Director Yes Yes Yes Yes Yes Yes
Mr. Arshad Majeed Director Yes Yes No - - -
Mr. Naeem Abdul Sattar Director Yes Yes Yes Yes Yes Yes
Syed Amir Ali Zaidi Director Yes Yes Yes Yes Yes Yes
Mr. Mubashar Maqbool Director - - - Yes Yes Yes
(Appointed in place of Syed Amir Ali Zaidi)*
Mr. Tariq Mairaj Director - - - Yes Yes Yes
(Appointed in place of Mr. Arshad Majeed)*
Mr. Feroz Rizvi Director - - - Yes Yes Yes
(Appointed in place of Mr. Moin M Fudda w ho
continued as nominee director of MBL)*
Ms. Danish Zuberi Director - - - Yes Yes Yes
(Appointed in place of Ms. Saima Shaukat Khan)*
* The effective date of start of tenure of new board, after re-election is December 31, 2020
_______________________________________________Annual Report 2021 | 158

Aug 9, 2021 Sep 14, 2021
_______________________________________________Annual Report 2021 | 159

MEEZAN
ENERGY FUND (MEF)
Meezan Energy Fund is a Shariah Compliant
Energy Sector (Equity) Scheme. It is an actively
managed fund offering a simple way to take
exposure to Shariah Compliant equity stocks,
primarily from the energy sector/segment/
industry available at Pakistan Stock Exchange
(PSX).
CURRENT ACCOUNT
DEFICIT
LOWEST
IN
YEARS
FY 20-21
Source: IMF
FUND INFORMATION
MANAGEMENT COMPANY
Phone (+9221) 35630722-6, 111-MEEZAN
Fax: (+9221) 35676143, 35630808


Syed Owais Wasti
AUDIT COMMITTEE

TRUSTEE
AUDITORS
SHARIAH ADVISER
Meezan Bank Limited
BANKERS TO THE FUND

Allied Bank Limited
Al Baraka Islamic Bank B.S.C (E.C)
Bank Al Habib Limited - Islamic Banking
Habib Metropolitan Bank Limited - Islamic Banking
Meezan Bank Limited
LEGAL ADVISER
Bawaney & Partners
Phone (9221) 35156191-94 Fax: (9221) 35156195
TRANSFER AGENT
Phone (+9221) 35630722-6, 111-MEEZAN
Fax: (+9221) 35676143, 35630808
DISTRIBUTORS
Meezan Bank Limited
Meezan Energy Fund (MEF)
Type of Fund
Sector specific open end equity fund. The fund was launched on November 29, 2016.
Objective
The objective of MEF is to seek long term capital appreciation through investments in Shariah compliant
equity stocks, primarily from the energy sector/segment/industry as defined in the constitutive
documents, and provide maximum total return to the shareholders for the given level of risk, while
abiding by the Regulations and any other prevailing rules and regulations.

The performance of MEF is directly linked to the performance of the energy sector of the equity market.
The fund manager, Al Meezan Investment Management Limited, actively manages the fund with an aim
to provide maximum risk adjusted total return to the investors. To control risk, the exposure in growth
stocks is balanced against that of high dividend stocks. Moreover, the fund manager strives to reduce
equity exposure in times when the market is trading above valuations while increasing equity exposure
near troughs.
Jun’21
70% Jun’20
60.1%
60% 55.4%
50%
40%
28.9%
30%
21.4%
20%
11.5%
8.9%
10% 4.2% 5.4% 4.2%
0.0%
0%
Others
Refinery
Oil & Gas Marketing
Power Generation &

Distribution
Companies
Companies
Top Holdings
Pakistan Petroleum Ltd. 17%
Pakistan Oilfields Ltd. 15%
Mari Petroleum Ltd. 14%
Oil & Gas Development Co Ltd 14%
Pakistan State Oil Co. Ltd. 13%
The Hub Power Co. Ltd. 7%
Sui Northern Gas Pipelines Limited 4%
Byco Petroleum Pakistan Ltd 3%
K-Electric Ltd 2%
Attock Refinery Limited 2%
Performance Review
During FY21, Meezan Energy Fund (MEF) provided a positive return of 14.25% to its investors while the
KSE Meezan Index (KMI 30) appreciated by 39.32% to close at 76,622 pts.
KMI-
MEF 30
The Fund earned a gross income of Rs. 81 million in fiscal year 2021 as compared to total loss of Rs. 32
million last year. Total income comprised of realized and unrealized gains on investments of Rs. 52 million
and Rs. 0.20 million respectively. Dividend income contributed Rs. 28 million to income, while profit on
saving accounts with banks amounted to Rs. 1 million. After accounting for expenses of Rs. 23 million, the
Fund posted a net income of Rs. 58 million. The net assets of the Fund as at June 30, 2021 were Rs. 584
million as compared to Rs. 542 million at the end of last year depicting an increase of 7.83%. The net asset
value per unit as at June 30, 2021 was Rs. 34.2992 as compared to Rs. 30.0200 per unit as on June 30,
2020.
Charity Statement
out of the income of the Trust to charitable / welfare organizations, in consultation with Shariah Advisor,
representing income that is Haram. During the year ended June 30, 2021 an amount of Rs. 1 million was
Distributions
(As on June 30, 2021)

1 - 9,999 1,210
10,000 - 49,999 178
50,000 - 99,999 22
100,000 - 499,999 9
500,000 and above 3
Total 1,422

Number 1 1 0 0
PERFORMANCE TABLE
2021 2020 2019

Net assets (Rs. '000) (ex-distribution) 584,310 541,866 598,703
Offer price per unit as at June 30, (Rs.) (ex-distribution) 35.4619 31.0376 34.4960
Distribution (%)
Interim N/A N/A N/A
Final N/A N/A N/A
Interim N/A N/A N/A
Final N/A N/A N/A
Income distribution (Rupees in '000) N/A N/A N/A
Total return (%) 14.25 (10.03) (32.98)

Average annual return as at June 30, 2021 (%) 14.25% 1.39% -11.68%
Past performance is not necessarily indicative of future performance and unit prices and investment returns may go down,
as well as up.
MEEZAN ENERGY FUND
AS AT JUNE 30, 2021
Note 2021 2020

(Rupees in '000)
Assets
Investments 6 578,360 518,105
Dividend receivable 1,764 109
Receivable against sale of investments - 30,650
Advance, deposits and other receivable 7 4,094 4,127
Preliminary expenses and floatation costs 8 83 283
Total assets 611,334 564,712
Liabilities
Payable to Al Meezan Investment Management Limited - Management Company 9 761 1,687
Payable to the Securities and Exchange Commission of
Pakistan (SECP) 11 105 109
Payable against purchase of investments - 2,776
NET ASSETS 584,310 541,866
UNIT HOLDERS' FUND (AS PER STATEMENT ATTACHED) 584,310 541,866
(Number of units)
(Rupees)

_____________________ _____________________ _____________________

_______________________________________________Annual Report 2021 | 176

MEEZAN ENERGY FUND
INCOME STATEMENT
Note 2021 2020

(Rupees in '000)
Income
Net realised gain / (loss) on sale of investments 51,874 (51,043)
Profit on balances with banks 753 2,527
80,550 (32,424)
Net unrealised appreciation / (diminution) on re-measurement
of investments - 'at fair value through profit or loss' 6.2 203 (29)
Total income / (loss) 80,753 (32,453)
Expenses
Remuneration to Al Meezan Investment Management Limited - Management
Company 9.1 10,523 10,860
Allocated expenses 9.3 545 543
Remuneration to Central Depository Company of Pakistan Limited - Trustee 10.1 1,052 1,089
Annual fee to the Securities and Exchange Commission of Pakistan (SECP) 11 105 109
Charity expense 12.1 1,086 631
Fees and subscription 565 565
Amortisation of preliminary expenses and floatation costs 8.1 200 200
Provision for Sindh Workers' Welfare Fund (SWWF) 12.2 1,182 -
Net income / (loss) for the year before taxation 57,935 (53,331)
Taxation 16 - -
Net income / (loss) for the year after taxation 57,935 (53,331)

Net income for the year after taxation 57,935 -
Income already paid on units redeemed (25,988)
31,947 -

- Relating to capital gains 31,947 -
31,947 -

_____________________ _____________________ _____________________

_______________________________________________Annual Report 2021 | 177

MEEZAN ENERGY FUND
2021 2020
(Rupees in '000)
Other comprehensive income - -
Total comprehensive income / (loss) for the year 57,935 (53,331)

_____________________ _____________________ _____________________

_______________________________________________Annual Report 2021 | 178

MEEZAN ENERGY FUND
2021 2020
Accumulated Accumulated
Capital value Total Capital value Total
losses losses
-------------------- (Rupees in '000) ---------------------------------------- (Rupees in '000) --------------------
Net assets at the beginning of the year 964,237 (422,371) 541,866 967,743 (369,040) 598,703
Issue of 71,397,288 units (June 30, 2020: 56,619,350 units)

beginning of the year) 2,143,347 - 2,143,347 1,889,099 - 1,889,099
- Element of income / (loss) 286,483 - 286,483 (71,676) - (71,676)
Redemption of 72,411,758 units (June 30, 2020: 56,513,293 units)

beginning of the year) 2,173,801 - 2,173,801 1,885,560 - 1,885,560
- Element of loss / (income) 245,532 25,988 271,520 (64,631) - (64,631)
Total payments on redemption of units 2,419,333 25,988 2,445,321 1,820,929 - 1,820,929
Total comprehensive income / (loss) for the year - 57,935 57,935 - (53,331) (53,331)
Distribution during the year - - - - - -
Net income / (loss) for the year less distribution - 57,935 57,935 - (53,331) (53,331)
Net assets at the end of the year 974,734 (390,424) 584,310 964,237 (422,371) 541,866

- Realised loss (422,342) (228,021)
- Unrealised loss (29) (141,019)
(422,371) (369,040)
31,947 -
Net loss for the year after taxation - (53,331)
Distribution during the year - -
Accumulated losses carried forward (390,424) (422,371)
Accumulated losses carried forward

- Realised loss (390,627) (422,342)
- Unrealised income / (loss) 203 (29)
(390,424) (422,371)
(Rupees) (Rupees)

_____________________ _____________________ _____________________

_______________________________________________Annual Report 2021 | 179

MEEZAN ENERGY FUND
CASH FLOW STATEMENT
Note 2021 2020

(Rupees in '000)
Adjustments for:
Amortisation of preliminary expenses and floatation costs 200 200
Net unrealised (appreciation) / diminution on re-measurement of
investments - 'at fair value through profit or loss' 6.2 (203) 29
57,932 (53,102)
Investments - net (60,052) 65,716
Receivable against sale of investments 30,650 (30,650)
Advance, deposits and other receivable 33 (2,237)
(31,024) 34,847
Decrease / (increase) in liabilities
Payable to Al Meezan Investment Management Limited - Management Company (926) (352)
Payable to Meezan Bank Limited (312) 344
Payable to the Securities and Exchange Commission of Pakistan (SECP) (4) (824)
Payable against purchase of investments (2,776) (648)
Accrued expenses and other liabilities 296 1,393
(3,713) (112)
Net cash generated from / (used in) operating activities 23,195 (18,367)

Payment against redemption and conversion of units (2,437,430) (1,808,617)
Net cash (used in) / generated from financing activities (7,627) 1,139
Net increase / (decrease) in cash and cash equivalents during the year 15,568 (17,228)

_____________________ _____________________ _____________________

_______________________________________________Annual Report 2021 | 180

MEEZAN ENERGY FUND
1.1 Meezan Energy Fund (the Fund) was established under a trust deed executed between Al Meezan Investment
Management Company as the Management Company and Central Depository Company of Pakistan Limited as the
Trustee. The Trust Deed was executed on September 09, 2016 and was approved by the Securities and Exchange
Commission of Pakistan (SECP) under the Non-Banking Finance Companies (Establishment and Regulation) Rules,
2003 (NBFC Rules) and the Non-Banking Finance Companies and Notified Entities Regulations, 2008 (NBFC
Regulations). The Management Company has been licensed by the Securities and Exchange Commission of Pakistan
(SECP) to act as an Asset Management Company under the NBFC Rules through a certificate of registration issued
by the SECP. The registered office of the Management Company of the Fund is situated at Ground Floor, Block 'B',
Finance and Trade Centre, Shariah-e-Faisal, Karachi 74400, Pakistan.
1.2 The objective of the Fund is to seek long term capital appreciation through investments in Shariah compliant equity
stocks, primarily from the energy sector / segment / industry, as defined in the constitutive documents. Under the Trust
Deed, all the conducts and acts of the Fund are based on Shariah principles. The Management Company has
appointed Meezan Bank Limited as its Shariah Advisor to ensure that the activities of the Fund are in compliance with
the principles of Shariah.
1.3 Units are offered for public subscription on a continuous basis. The units are transferable and can be redeemed by
surrendering them to the Fund. The Fund is listed on the Pakistan Stock Exchange Limited. The Fund is categorised
as an Open End Shariah Compliant (Islamic) Equity Scheme in accordance with Circular 7 of 2009 issued by the
SECP.
processes.
Investment Scheme Trust Deed to Registrar (acting under Sindh Trusts Act, 2020) to fulfill the requirement for
registration of Trust Deed under Sindh Trusts Act, 2020.
- Provisions of and directives issued under the Companies Act, 2017 along with part VIIIA of repealed Companies
Ordinance, 1984; and
_______________________________________________Annual Report 2021 | 181

annual accounting year beginning on July 1, 2020. However, these do not have any significant impact on the Fund's
effective
There are certain other standards, amendments and interpretations that are mandatory for the Fund's accounting
period beginning on or after July 1, 2021 but are considered not to be relevant or will not have any significant effect on
the Fund's operations and are therefore not disclosed in these financial statements.
years.
classification, valuation and impairment of financial assets (notes 4.3 and 6) and provision for taxation (notes 4.14 and
16).
These financial statements have been prepared under the historical cost convention except for investments classified
as 'at fair value to profit or loss' are measured at their respective fair values.
which the Fund operates. These financial statements are presented in Pakistani Rupee, which is the Funds' functional
_______________________________________________Annual Report 2021 | 182

b) Impairment
The Fund assesses on a forward looking basis the expected credit loss (ECL) associated with its financial assets
4.3.4 Derecognition
4.3.5 Derivatives
_______________________________________________Annual Report 2021 | 183

4.6 Provisions
best estimate.
Units redeemed are recorded at the redemption price, applicable to units for which the distributors receive redemption
applications during business hours of that day. The redemption price represents the net asset value per unit as of the
close of the business day less any back-end load, any duties, taxes, charges on redemption and any provision for
transaction costs, if applicable.
Management Company. Based on the Mutual Funds Association of Pakistan's (MUFAP) guidelines duly consented by
redeemed
Element of income represents the difference between net assets value per unit on the issuance or redemption date, as
the case may be, of units and the net assets value per unit at the beginning of the relevant accounting year. Further,
unit holders' fund. However, to maintain the same ex-dividend net asset value of all units outstanding on the
accounting date, net element of income contributed on issue of units lying in unit holders fund will be refunded on units
in the same proportion as dividend bears to accounting income available for distribution.
- Gains / (losses) arising on sale of investments are included in the Income Statement currently, on the date when
the transaction takes place.
- Unrealised gains / (losses) arising on revaluation of securities classified as financial assets 'at fair value through
profit or loss' are included in the Income Statement in the year in which they arise.
- Dividend income is recognised when the Fund's right to receive the same is established, i.e. on the
commencement of book closure of the investee company / institution declaring the dividend.
- Profit on balances with banks is recognised on a time proportion basis using the effective yield method.
4.12 Expenses
_______________________________________________Annual Report 2021 | 184

4.13 Preliminary expenses and floatation costs
Preliminary expenses and floatation costs represent expenditure incurred prior to the commencement of the operations
of the Fund. These costs are being amortised over a year of 5 years in accordance with the requirements set out in the
Trust Deed of the Fund.
4.14 Taxation
Current
Deferred
differences, unused tax losses and tax credits can be utilised. Deferred tax is calculated at the rates that are expected
to apply to the year when the differences reverse based on enacted tax rates.
The income of the Fund is exempt from income tax under clause 99 of Part I to the Second Schedule to the Income
reduced by capital gains, whether realised or unrealised, is distributed amongst the unit holders. Provided that, for the
The Fund is also exempt from the provisions of section 113 (minimum tax) under clause 11A of Part IV to the Second
Earnings / loss per unit (EPU) has not been disclosed as, in the opinion of the management, the determination of
Note 2021 2020

(Rupees in '000)
5 BALANCES WITH BANKS

Current accounts 1,044 669
18,782 3,214
related party) that has an expected profit rate of 2.5% (2020: 3%) per annum. Other profit and loss sharing accounts of
the Fund have expected profit rates ranging from 2.24% to 7.20% per annum (2020: 2.31% to 7.40% per annum).
_______________________________________________Annual Report 2021 | 185

Note 2021 2020
(Rupees in '000)
6 INVESTMENTS
Investment at 'fair value through profit or loss'

Listed equity securities 6.1 578,360 518,105
6.1 Investment at 'fair value through profit or loss'
Unrealised Paid-up capital
Carrying Market Total
Purchases Sales gain / Net Assets of investee
As at July Bonus / As at June value as value as market
Name of the investee company during the during the (loss) as at of the company (with
1, 2020 Right issue 30, 2021 at June at June value of
year year June 30, Fund face value of
30, 2021 30, 2021 investment
2021 investment)
-------------------------------Number of shares--------------------------------------------------(Rupees in '000)-------------------- ---%---
Sectors / companies

Mari Petroleum Company Limited (note 6.1.3) 64,244 95,762 - 102,863 57,143 77,066 87,108 10,042 14.91 0.04 15.06
Oil and Gas Development Company Limited 874,228 2,359,157 - 2,330,369 903,016 97,821 85,814 (12,007) 14.69 0.02 14.84
Pakistan Oilfields Limited (note 6.1.3) 280,680 452,080 - 506,480 226,280 86,598 89,123 2,525 15.25 0.08 15.41
Pakistan Petroleum Limited (note 6.1.3) 928,718 2,701,618 - 2,415,918 1,214,418 112,050 105,448 (6,602) 18.05 0.04 18.24
62.90 0.18 63.55
Attock Petroleum Limited 51,200 76,900 - 96,600 31,500 10,072 10,112 40 1.73 0.03 1.75
Hascol Petroleum Limited 1,074,011 1,604,011 - 2,674,011 4,011 60 36 (24) 0.01 - 0.01
Hi-Tech Lubricants Limited 410,000 748,000 - 1,072,000 86,000 5,565 6,098 533 1.04 0.07 1.05
Pakistan State Oil Company Limited (note
6.1.2 & 6.1.3) 198,388 622,888 - 457,398 363,878 80,263 81,600 1,337 13.97 0.08 14.11
Shell Pakistan Limited 49,000 171,800 36,900 233,900 23,800 3,560 4,170 610 0.71 0.01 0.72
Sui Northern Gas Pipelines Limited 378,800 1,112,800 - 1,004,300 487,300 21,424 23,673 2,249 4.05 0.08 4.09
Sui Southern Gas Pipelines Limited - 500,000 - 100,000 400,000 5,056 5,320 264 0.91 0.05 0.92
22.42 0.32 22.65
The Hub Pow er Company Limited 748,444 1,812,444 - 2,034,444 526,444 43,939 41,942 (1,997) 7.18 0.04 7.25
K - Electric Limited (note 6.1.1) 2,141,000 6,441,000 - 5,628,500 2,953,500 12,078 12,346 268 2.11 0.01 2.13
9.29 0.05 9.38
Refinery
Byco Petrolem Limited - 1,400,000 - 70,000 1,330,000 12,581 15,440 2,859 2.64 0.01 2.67
4.37 0.02 4.42
Total as at June 30, 2021 578,157 578,360 203 98.98 100.00
Total as at June 30, 2020 518,134 518,105 (29)
6.1.1 All shares have a nominal value of Rs.10 each except for the shares of K-Electric Limited which have nominal value
of Rs. 3.50 each.
applicable on bonus shares received by CISs. A stay order had been granted by the High Court of Sindh (HCS) in
favour of CISs.
_______________________________________________Annual Report 2021 | 186

during the year ended June 30, 2019. During the year ended June 30, 2020, the CISs had filed a fresh constitutional
petition via CP 4653 dated July 11, 2019. In this regard, on July 15, 2019, the Honourable High of Sindh had issued
notices to the relevant parties and had ordered that no third party interest on bonus shares issued to the Funds in lieu
of their investments be created in the meantime. The matter is still pending adjudication and the Funds have included
these shares in their portfolio, as the Management is confident that the decision of the constitutional petition will be in
favour of the CISs.
The Finance Act, 2018 effective from July 1, 2018 has omitted Section 236M of Income Tax Ordinance, 2001 requiring
every company quoted on stock exchange issuing bonus shares to the shareholders of the company, to withhold five
percent of the bonus shares to be issued. Therefore, bonus shares issued to the Fund during the year were not
withheld by the investee companies.
As at June 30, 2021, the bonus shares of the Fund withheld by Pakistan State Oil Company Limited at the time of
declaration of bonus shares amounted to Rs. 1.308 million (June 30, 2020: Rs. 0.922 million).
6.1.3 Investments include 65,000 shares of Pakistan Petroleum Limited, 26,500 shares of Pakistan Oilfields Limited, 4,000
shares of Mari Petroleum Limited and 5,000 shares of Pakistan State Oil Company Limited, having market value of Rs
5.644 million, Rs. 10.437 million, Rs. 6.098 million and Rs. 1.121 million respectively as at June 30, 2021 (June 30,
2020: 65,000 shares of Pakistan Petroleum Limited and 26,500 shares of Pakistan Oilfields Limited, having market
value of Rs 5.641 million and 9.292 million) which have been pledged with National Clearing Company of Pakistan
Limited for guaranteeing settlement of the Fund's trades in accordance with Circular No. 11 dated October 23, 2007
issued by the SECP.
Note 2021 2020

6.2 Unrealised appreciation / (diminution) on re-measurement (Rupees in '000)
of investments classified as 'financial assets at fair
value through profit or loss'
Market value of investments 6.1 578,360 518,105

Carrying value of investments 6.1 578,157 518,134
203 (29)
7 ADVANCE, DEPOSITS AND OTHER RECEIVABLE
Profit accrued on balances with banks 63 96

Advance tax 7.1 1,431 1,431
4,094 4,127
7.1 As per clause 47(B) of part IV of the Second Schedule to the Income Tax Ordinance, 2001, payments made to
collective investment schemes (CISs) are exempt from withholding tax under section 151 and 150. However, during
prior years, withholding tax on dividend and profit on debt paid to the Fund was deducted by various withholding
agents based on the interpretation issued by FBR vide letter C. no. 1(43) DG (WHT)/2008-VOL.II-66417-R dated 12
May 2015 which requires every withholding agent to withhold income tax at applicable rates in case a valid exemption
certificate under section 159(1) issued by the concerned Commissioner of Inland Revenue (CIR) is not produced
before him by the withholdee. The tax withheld on dividends and profit on debt amounts to Rs 1.431 million.
For this purpose, the Mutual Funds Association of Pakistan (MUFAP) on behalf of various mutual funds (including the
Funds being managed by the Management Company) had filed a petition in the Honourable Sindh High Court (SHC)
challenging the above mentioned interpretation of the Federal Board of Revenue (FBR) which was decided by the
SHC in favour of FBR. A petition was filed in the Supreme Court of Pakistan by the Funds together with other CISs
(managed by the Management Company and other Asset Management Companies) whereby the Supreme Court
granted the petitioners leave to appeal from the initial judgment of the SHC. Pending resolution of the matter, the
amount of withholding tax deducted on dividends and profit on bank deposits has been shown as other receivables as
at June 30, 2021 as, in the opinion of the management, the amount of tax deducted at source will be refunded.
_______________________________________________Annual Report 2021 | 187

Note 2021 2020
8 PRELIMINARY EXPENSES AND FLOATATION COSTS (Rupees in '000)
At the beginning of the year 283 483

Less: Amortisation during the year 8.1 200 200
At the end of the year 83 283
8.1 Preliminary expenses and floatation costs represent expenditure incurred prior to the commencement of operations of
the Fund. These costs are amortised over a year of five years in accordance with the requirements set out in the Trust
Deed of the Fund and the Non-Banking Finance Companies and Notified Entities Regulations, 2008.
9 PAYABLE TO Al MEEZAN MANAGEMENT LIMITED - Note 2021 2020

MANAGEMENT COMPANY (Rupees in '000)
Remuneration payable 9.1 67 928

Sindh Sales Tax payable on remuneration
of the Management Company 9.2 9 121
Sales load 26 66
Allocated expense payable 9.3 55 46
Selling and marketing expenses payable 9.4 601 517
761 1,687
9.1 As the Regulation 61 of the NBFC Regulations, 2008, the Management Company is entitled to a remuneration equal to
management fee levied through the Sindh Sales Tax on Services Act, 2011 and an amount of Rs. 1.480 million (2020:
Rs.1.439 million) has been paid to the Management Company which acts as a collecting agent.
Scheme (CIS).
The Management Company based on its own discretion has charged 0.1% of the average annual net assets of the
Fund for allocation of such expenses to the Fund from July 1, 2020 till March 9, 2021 and 0.11% with effect from
March 10, 2021 subject to not being higher than the actual expense. These expenses have also been approved by the
Board of Directors of the Management Company (2020: 0.1%).
Management Company, based on its own discretion has charged selling and marketing expenses at the rate of 0.4%
(2020: 0.4%) of the average annual net assets of the Fund. These expenses have also been approved by the Board of
Directors of the Management Company.
10 PAYABLE TO CENTRAL DEPOSITORY COMPANY Note 2021 2020

OF PAKISTAN LIMITED - TRUSTEE (Rupees in '000)

Sindh Sales Tax payable on remuneration of the Trustee 10.2 13 12
113 104
deed as follows:
On net assets:
- Up to Rs 1,000 million 0.2% per annum of net assets
- Over Rs. 1,000 million Rs 2 million plus 0.1% per annum of net assets exceeding Rs 1,000 million.
_______________________________________________Annual Report 2021 | 188

In accordance with the NBFC Regulations, 2008, a collective investment scheme classified as an "Equity scheme" is
required to pay annual fee to the Securities and Exchange Commission of Pakistan.
Accordingly, the Fund has charged SECP Fee at the rate of 0.02% of average annual net assets of the Fund during
the current year (2020: 0.02% of average annual net assets).
Note 2021 2020

12 ACCRUED EXPENSES AND OTHER LIABILITIES (Rupees in '000)

Charity payable 12.1 1,041 655
Capital gain tax payable 186 425
Brokerage payable 624 1,679
Zakat payable 30 5
5,085 4,789
During the year ended June 30, 2021, non-Shariah compliant income amounting to Rs 1.086 million (2020: Rs 0.631
million) was charged as an expense in the books of the Fund and Rs. 0.7 million was disbursed to the following
S. Amount
No. Rupees in '000
1 Karsaz Trust 200

2 Pakistan Association of the Blind 500
Total 700
regarding the applicability of SWWF on CISs/mutual funds, MUFAP recommended that, as a matter of abundant
Had the provision for SWWF not been recorded in the financial statements of the Fund for the year from May 21, 2015
to June 30, 2021, the net asset value of the Fund as at June 30, 2021 would have been higher by Re. 0.16 per unit
(2020: Re 0.08 per unit).
_______________________________________________Annual Report 2021 | 189

2021 2020
14 AUDITORS' REMUNERATION (Rupees in '000)

284 281
representing government levies on the Fund such as provision for Sindh Workers' Welfare Fund, sales taxes, annual
fee to the SECP, Shariah advisors fee. This ratio is within the maximum limit of 4.5% prescribed under the NBFC
Regulations for a collective investment scheme categorised as an Equity Scheme.
16 TAXATION
as per Regulation 63 of the Non-Banking Finance Companies and Notified Entities Regulations, 2008, the Fund is
required to distribute not less than 90% of its accounting income for the year derived from sources other than capital
gains as reduced by such expenses as are chargeable thereon to the unit holders. Since the Management has
unit holders in the manner as explained above, no provision for taxation has been made in these financial statements
during the year.
applicable on funds as per Section 4B of the Income Tax Ordinance, 2001.
Connected persons / related parties include Al Meezan Investment Management Limited being the Management
Company, the Central Depository Company of Pakistan (CDC) being the Trustee, Meezan Bank Limited being the
holding company of the Management Company, Directors and executives of the Management Company, other
collective investment schemes managed by the Management Company, Pakistan Kuwait Investment Company
(Private) Limited being the associated company of the Management Company, Al Meezan Investment Management
Limited - Employees Gratuity Fund and unit holders holding 10 percent or more of the Fund's net assets.
Transactions with connected persons / related parties essentially comprise sale and redemption of units, fee on
account of managing the affairs of the Fund, sales load, other charges and distribution payments to connected
persons. The transactions with connected persons / related parties are in the normal course of business, at contracted
rates and at terms determined in accordance with market rates.
Regulations, and the Trust Deed.
The details of transactions carried out by the Fund with connected persons / related parties during the year and
balances with them as at year end are as follows:
2021 2020
Balances (Rupees in '000)

Remuneration payable to the Management Company 67 928
Allocated expenses 55 46
Selling and marketing expenses payable 601 517
_______________________________________________Annual Report 2021 | 190

2021 2020
(Rupees in '000)
Meezan Bank Limited
Bank balance 17,265 2,651


Investment of 219,868 units (2020: 23,930 units) 7,541 718
Transactions during the year

Allocated expenses 545 543
Units issued: 431,954 units (2020: 972,238 units) 15,000 30,179
Meezan Bank Limited

Profit on saving accounts 251 1,668
Shariah advisory fee expense 537 537

CDS charges 93 84


--------------------------------------- 2021 ---------------------------------------
At fair value
At amortised
cost
or loss
--------------------- (Rupees in '000) ---------------------
Financial assets
Investments - 578,360 578,360
Receivable against sale of investments - - -
Deposits and other receivable 2,663 - 2,663
31,460 578,360 609,820
_______________________________________________Annual Report 2021 | 191

--------------------------------------- 2021 ---------------------------------------
At fair value
At amortised
cost
or loss
Financial liabilities --------------------- (Rupees in '000) ---------------------
Payable to Al Meezan Investment Management Limited - Management
Company - 761 761
Payable against purchase of investments - - -
- 23,994 23,994
--------------------------------------- 2020 ---------------------------------------

At fair value
At amortised
cost
or loss
--------------------- (Rupees in '000) ---------------------
Financial assets
Investments - 518,105 518,105
Dividend receivable 109 - 109
Deposits and other receivable 2,696 - 2,696
44,893 518,105 562,998
--------------------------------------- 2020 ---------------------------------------

At fair value
At amortised
cost
or loss
Financial liabilities --------------------- (Rupees in '000) ---------------------
Payable to Al Meezan Investment Management Limited - Management
Company - 1,687 1,687
- 20,780 20,780
Financial risk management objectives and policies:
minimise potential adverse effects on the Fund’s financial performance.
Risks of the Fund are being managed by the Fund manager in accordance with the approved policies of the
Investment Committee which provides broad guidelines for management of risk pertaining to market risks (including
price risk and interest rate risk) credit risk and liquidity risk. Further, the overall exposure of the Fund complies with the
NBFC Regulations, and the directives issued by the SECP.
19.1 Market risk
following the internal guidelines established by the Investment Committee and the regulations laid down by the SECP.
Market risk comprises of three types of risks: profit rate risk, currency risk, and price risk.
_______________________________________________Annual Report 2021 | 192

of changes in market profit rates. As of June 30, 2021, the Fund is exposed to such risk on its balances held with
banks. The Investment Committee of the Fund reviews the portfolio of the Fund on a regular basis to ensure that
the risk is managed within the acceptable limits.
0.177 million (2020: Rs. 0.025 million).
As at June 30, 2021, the Fund does not hold any fixed rate instrument that may expose the Fund to fair value
profit rate risk.
The composition of the Fund's investment portfolio are expected to change over time. Accordingly, the sensitivity
analysis prepared as of June 30, 2021 is not necessarily indicative of the impact on the Fund's net assets of future
movements in profit rates.
------------------------------------------------------------ 2021 ------------------------------------------------------------

Not
More than
Effective exposed to
three
months
and up to
risk
one year
---------------------------------------- (Rupees in '000) ----------------------------------------
Financial assets
Investments - - - 578,360 578,360
Receivable against sale of investments - -
Deposits and other receivable - - - 2,663 2,663
17,738 - - 592,082 609,820
Limited - Management Company - - - 761 761
Payable against purchase of investments - - - - -
- - - 23,994 23,994
On-balance sheet gap (a) 17,738 - - 568,088 585,826
------------------------------------------------------------ 2020 ------------------------------------------------------------

Not
_______________________________________________Annual
Effective
More than Report
exposed to
2021 | 193
------------------------------------------------------------ 2020 ------------------------------------------------------------

Not
More than
Effective exposed to
three
months
and up to
risk
one year
---------------------------------------- (Rupees in '000) ----------------------------------------
Financial assets
Balances w ith banks 2.31% - 7.40% 2,545 - - 669 3,214
Investments - - - 518,105 518,105
Dividend receivable - - - 109 109
Deposits and other receivable - - - 2,696 2,696
2,545 - - 560,453 562,998
Limited - Management Company - - - 1,687 1,687
- - - 20,780 20,780
(ii) Currency risk
(iii) Price risk
total comprehensive income of the Fund for the year would increase / decrease by Rs. 5.784 million (2020:
Rs.5.181 million) and the net assets of the Fund would increase / decrease by the same amount as a result of
gains / losses on equity securities classified as financial assets at fair value through profit or loss.
_______________________________________________Annual Report 2021 | 194

19.2 Liquidity risk
year.
groupings is based on the remaining year at the end of the reporting year to the contractual maturity dates. However,
the assets and liabilities that are receivable / payable on demand including bank balances have been included in the
maturity grouping of one month:
-------------------------------------------------------------------------------- 2021 --------------------------------------------------------------------------------

More than
More than Financial
one More than
three instruments
and upto fixed
three five years
one year maturity
months
--------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------
Financial assets
Investments - - - - 578,360 578,360
Receivable against sale of investments - - - - - - -
Deposits and other receivable 2,663 - - - - - 2,663
31,460 - - - - 578,360 609,820
Payable against purchase of investments - - - - - - -
Accrued expenses and other liabilities - 2,160 - - - - 2,160
21,834 2,160 - - - - 23,994
Net assets / (liabilities) 9,626 (2,160) - - - 578,360 585,826
-------------------------------------------------------------------------------- 2020 --------------------------------------------------------------------------------

More than
More than Financial
one More than
three instruments
_______________________________________________Annual
month and upto
and upto
and upto 5 years Report 2021 | 195
fixed
21,834 2,160 - - - - 23,994
-------------------------------------------------------------------------------- 2020 --------------------------------------------------------------------------------

More than
More than Financial
one More than
three instruments
and upto fixed
three five years
one year maturity
months
--------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------
Financial assets
Investments - - - - 518,105 518,105
Dividend receivable 109 - - - - - 109
Deposits and other receivable 2,696 - - - - - 2,696
44,893 - - - - 518,105 562,998
Payable against conversion and redemption
of units 13,036 - - - - - 13,036
Accrued expenses and other liabilities - 2,832 - - - - 2,832
17,948 2,832 - - - - 20,780
19.3 Credit risk
2021 2020
Maximum Maximum
--------------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------

Investments 578,360 - 518,105 -
Dividend receivable 1,764 1,764 109 109
Receivable against sale of investments - - 30,650 30,650
Deposits and other receivable 2,663 2,663 2,696 2,696
609,820 31,460 562,998 44,893
The difference in the balance as per the statement of assets and liabilities and maximum exposure is due to the fact
that investment in equity securities of Rs 578.360 million (2020: Rs 518.105 million) is not exposed to credit risk.
account of its placements in banks and profit accrued on bank balances, dividend receivable and receivable against
sale of units and against investments. The credit rating profile of balances with banks is as follows:
_______________________________________________Annual Report 2021 | 196

2021 2020
AAA 92.16 0.93

AA+ 6.92 88.29
A+ 0.92 10.78
100.00 100.00
------------------------- 2021 -------------------------

--------------------------------------------------------------- (Rupees in '000) -------------------------------------
Financial assets
At fair value through profit or loss 578,360 - -
------------------------- 2020 -------------------------

--------------------------------------------------------------- (Rupees in '000) -------------------------------------
Financial assets
At fair value through profit or loss 518,105 - -
times.
_______________________________________________Annual Report 2021 | 197

------------------------- 2021 ------------------------- ------------------------- 2020 -------------------------

Category Number of unit Percentage of Number of unit Percentage of
amount amount
holders total holders total
(Rupees in '000) (Rupees in '000)
Individuals 1,413 420,616 71.99 1,421 364,318 67.23

Associated Companies /
Directors 2 117,719 20.15 1 161,484 29.80
Retirement Funds - - - 1 162 0.03
Insurance Companies - - - - - -
Others 7 45,975 7.86 19 15,902 2.94
1,422 584,310 100.00 1,442 541,866 100.00
---------------------------------- 2021 ---------------------------------- ---------------------------------- 2020 ----------------------------------

Percentage of
Percentage of
commission paid
paid
Taurus Securities Limited 11% Spectrum Securities (Private) Limited 11%

AKD Securities Limited 9% JS Global Capital Limited 10%
EFG Hermes Pakistan Limited 7% Optimus Capital Management (Private) Limited 7%
Standard Capital Securities (Private) Limited 6% Top Line Securities (Private) Limited 7%
Spectrum Securities (Private) Limited 5% Taurus Securities Limited 6%
Intermarket Securities (Private) Limited 5% Arif Habib Limited 6%
Optimus Capital Management (Private) Limited 5% BMA Capital Management Limited 6%
Insight Securities (Private) Limited 4% Standard Capital Securities (Private) Limited 5%
Foundation Securities (Private) Limited 4% Invest & Finance Securities Limited 5%
Top Line Securities (Private) Limited 4% AKD Securities Limited 5%
Mr. Mohammad Shoaib Chief Executive Officer CFA / MBA Thirty one years
Mr. Muhammad Asad Chief Investment Officer CFA level II / MBA Twenty five years
Mr. Taha Javed Head of Equities CFA / MBA Fourteen years
Mr. Ali Khan VP Product Development CFA / FRM / MBA Eleven years
Mr. Ali Asghar VP / Head of Research CFA / MBA (in progress) Ten years
_______________________________________________Annual Report 2021 | 198

Aug 9, 2021 Sep 14, 2021
_______________________________________________Annual Report 2021 | 199

_______________________________________________Annual Report 2021 | 200
MEEZAN
PAKISTAN EXCHANGE TRADED
FUND (MP-ETF)
Meezan Pakistan Exchange Traded Fund is a Shariah
Compliant Exchange Traded Fund that aims to provide
investors an opportunity to track the performance of Meezan
Pakistan Index that has been constituted and is maintained
by Al Meezan, and comprises Shariah Compliant equity
securities selected with high consideration towards market
capitalization and traded Value.
ONE OF
ASIA'S BEST
PERFORMING
STOCK MARKET
Sep 2020
Source: Pakistan Stock
Exchange (PSX)
FUND INFORMATION
MANAGEMENT COMPANY
Phone (+9221) 35630722-6, 111-MEEZAN
Fax: (+9221) 35676143, 35630808


Syed Owais Wasti
AUDIT COMMITTEE

TRUSTEE
AUDITORS
SHARIAH ADVISER
Meezan Bank Limited
BANKERS TO THE FUND

Meezan Bank Limited
LEGAL ADVISER
Bawaney & Partners
Phone (+9221) 35156191-94 Fax: (+9221) 35156195
TRANSFER AGENT
Phone (+9221) 35630722-6, 111-MEEZAN
Fax: (+9221) 35676143, 35630808
DISTRIBUTORS
Meezan Bank Limited
Meezan Pakistan Exchange Traded Fund
Type of Fund
Open end Shariah Compliant Exchange Traded Scheme
Objective
Meezan Pakistan Exchange Traded Fund is a Shariah Compliant Exchange Traded Fund that aims to
provide investors an opportunity to track the performance of Meezan Pakistan Index that has been
constituted and is maintained by the Management Company, and comprises of Shariah compliant equity
securities selected with high consideration towards market capitalization and traded Value.

The Fund shall invest in a particular basket of shariah compliant securities with a view to track the
performance of a representative shariah compliant securities index. The Benchmark Index is called
“Meezan Pakistan Index” and shall be constituted and periodically maintained by the Management
Company in close collaboration with the Shariah Advisor of the Fund.
Sector Allocation as on 30th June 2021

Fertilizer 22% Companies 21%
Engineering 4% Pharmaceuticals 5%
Oil & Gas Marketing

Companies 10%
Cement 27% Food & Personal Care

Products 7%
Cash and Other
Including receivables
4%
Performance Review
During FY21, Meezan Pakistan Exchange Traded Fund (MZNP-ETF) provided a positive return of 15.57%
to its investors while Meezan Pakistan Index (MZNPI) appreciated 18.57% to close at 11,272 pts. On a gross
basis, the fund’s return was 2.83%.
MZNP-ETF MZNPI
Net Asset Value (NAV) as on October 06, 2020 10.00 9,507
Launched date Oct 06, 2020
MP-ETF posted a total Income of Rs. 5 million in the fiscal year 2021. Total Income comprised of realized
gain and unrealized capital gain on investments of Rs. 1.8 million and Rs. 1.2 million respectively.
Dividend income contributed Rs. 1.7 million to income, while profit on saving accounts with banks
amounted to Rs. 0.03 million. After accounting for expenses of Rs. 0.50 million, the Fund posted a net
Income of Rs. 6million. The net assets of the Fund as at June 30, 2021 were Rs. 39 million. The net asset
value per unit as at June 30, 2021 was Rs. 10.3387.
130
125
MZNP-ETF Benchmark
120
115
110
105
100
95
90
85
80
Jun-21
Nov-20
Dec-20
Mar-21
Apr-21
May-21
Jan-21
Feb-21
Oct-20
Charity Statement
representing income that is Haram. During the year ended June 30, 2021 an amount of Rs. 0.04 million
was accrued as charity payable.
Distributions
The Interim Pay out by the Fund during the fiscal year ended June 30, 2021 was Rs. 1.25 per unit (12.5%).
Total distribution made by the fund was Rs. 4.75 million.

Number 5 5 0 0
For and on behalf of the Board Mohammad Shoaib, CFA

Date: August 9, 2021 Chief Executive Officer
PERFORMANCE TABLE
2021
Net assets (Rs. '000) (ex-distribution) 39,287
as at June 30 (Rs.) (ex-distribution) 10.3387
Offer price per unit as at June 30, (Rs.) (ex-distribution) 10.3387
Highest offer price per unit (Rs.) 12.117
Lowest offer price per unit (Rs.) 9.9137
Highest redemption price per unit (Rs.) 12.117
Lowest redemption price per unit (Rs.) 9.9137
Distribution (%)
Interim 12.50
Final -
Interim June 25, 2021
Final
Total return (%) 15.57
Past performance is not necessarily indicative of future performance and unit

prices and investment returns may go down, as well as up.
We, Central Depository Company of Pakistan Limited, being the Trustee of Meezan
Pakistan Exchange Traded Fund (the Fund) are of the opinion that Al Meezan Investment
Management Limited being the Management Company of the Fund has in all material
respects managed the Fund during the period from October 06, 2020 to June 30, 2021 in
accordance with the provisions of the following:
(i) Limitations imposed on the investment powers of the Management Company

under the constitutive documents of the Fund;
(ii) The issuance and redemption of units are carried out in accordance with the
requirements of the constitutive documents of the Fund; and
(iii) The Non-Banking Finance Companies (Establishment and Regulations) Rules,

2003, the Non-Banking Finance Companies and Notified Entities Regulations,
2008 and the constitutive documents of the Fund.
MEEZAN PAKISTAN EXCHANGE TRADED FUND
AS AT JUNE 30, 2021
Note 2021
(Rupees in '000)
Assets
Balances with bank 5 1,208
Investments 6 38,827
Dividend receivable 295
Other receivables 7 57
Total assets 40,387
Liabilities
Payable to Al Meezan Investment Management Limited - Management Company 8 1
Payable to Central Depository Company of Pakistan Limited - Trustee 9 5
Pakistan (SECP) 10 5
Accrued expenses and other liabilities 11 1,089
Total liabilities 1,100
NET ASSETS 39,287
UNIT HOLDERS' FUND (AS PER STATEMENT ATTACHED) 39,287
NUMBER OF UNITS IN ISSUE 3,800,000
NET ASSET VALUE PER UNIT 10.3387

_____________________ _____________________ _____________________

_______________________________________________Annual Report 2021 | 214

INCOME STATEMENT
FOR THE PERIOD FROM OCTOBER 6, 2020 TO JUNE 30, 2021
For the period

from October
6, 2020 to
June 30, 2021
Note (Rupees in '000)
Income
Profit on balances with bank 27
Dividend income 1,708
Realised gain on sale of investments 1,787
3,522
Net unrealised appreciation on re-measurement of investments
classified as financial assets at 'fair value through profit or loss' 6.2 1,186
Total income 4,708
Expenses
Remuneration of Al Meezan Investment Management Limited - Management Company 8.1 133
Sindh Sales Tax on remuneration of the Management Company 8.2 17
Remuneration of Central Depository Company of Pakistan Limited - Trustee 9.1 28
Sindh Sales Tax on remuneration of the Trustee 9.2 4
Annual fees to the Securities and Exchange Commission of Pakistan (SECP) 10 5
Brokerage expense 14
Auditors' remuneration 13 100
Charity expense 11.1 40
Fee and subscription 12
Bank and settlement charges 23
Provision for Sindh Workers' Welfare Fund (SWWF) 11.2 123
Total expenses 499
Net income from operating activities during the period 4,209
Element of income / (loss) and capital gains / (losses) included in prices 1,828
of units issued less those in units redeemed - net
Net income for the period before taxation 6,037
Taxation 15 -
Net income for the period after taxation 6,037

- Relating to capital gains 2,973
- Excluding capital gains 3,064
6,037

_____________________ _____________________ _____________________

_______________________________________________Annual Report 2021 | 215

For the period

from October
6, 2020 to
June 30, 2021
(Rupees in '000)
Net income for the period before taxation 6,037
Other comprehensive income for the period -
Total comprehensive income for the period 6,037

_____________________ _____________________ _____________________

_______________________________________________Annual Report 2021 | 216

For the period from October 6, 2020

to June 30, 2021
Undistributed
Capital value Total
income
-------------------------------------------------(Rupees in '000)-------------------------------------------------
Issuance of 7,390,000 units

- Capital value (at par value) 73,900 - 73,900
- Element of income 6,185 - 6,185
Total proceeds on issuance of units 80,085 - 80,085
Redemption of 3,590,000 units

- Capital value (at par value) 35,900 - 35,900
- Element of loss 4,357 - 4,357
Total payments on redemption of units 40,257 - 40,257
Element of income / (loss) and capital gains / (losses) included in

prices of units issued less those in units redeemed - net (1,828) - (1,828)
Total comprehensive income for the period - 6,037 6,037
Interim distribution for the period ended June 30, 2021 - (4,750) (4,750)
Net assets at the end of the period 38,000 1,287 39,287

- Relating to capital gains 2,973
- Excluding capital gains 3,064
6,037
Interim distribution during the period at Rs. 1.25 per unit ended June 30, 2021
i.e. 12.5% of the par value of Rs.10/- each (4,750)
Undistributed income carried forward 1,287
Undistributed income carried forward

- Realised gain 101
- Unrealised gain 1,186
1,287
(Rupees)
Net assets value per unit at the end of the period 10.3387

_____________________ _____________________ _____________________

_______________________________________________Annual Report 2021 | 217

CASH FLOW STATEMENT
Note For the period

from October
6, 2020 to
June 30, 2021
(Rupees in '000)
Net income from operating activities during the period 6,037
Adjustments for
Net unrealised appreciation on re-measurement of
investments classified assets at 'fair value through profit or loss' 6.2 (1,186)
Element of income / (loss) and capital gains / (losses) included in prices
of units issued less those in units redeemed - net (1,828)
3,023
Increase in assets
Investments - net (37,641)
Dividend receivable (295)
Other receivables (57)
(37,993)
Increase in liabilities
Payable to Al Meezan Investment Management Limited - Management Company 1
Payable to Central Depository Company of Pakistan Limited - Trustee 5
Payable to the Securities and Exchange Commission of Pakistan (SECP) 5
Accrued expenses and other liabilities 1,089
1,100
Net cash used in operating activities (33,870)
Receipts against issuance and conversion of units 80,085

Payment against redemption and conversion of units (40,257)
Dividend Paid (4,750)
Net cash generated from financing activities 35,078
Net increase in cash and cash equivalents during the period 1,208
Cash and cash equivalents at the beginning of the period -
Cash and cash equivalents at the end of the period 5 1,208

_____________________ _____________________ _____________________

_______________________________________________Annual Report 2021 | 218

1.1 Meezan Pakistan Exchange Traded Fund (the Fund) was established under a Trust Deed executed between Al
Meezan Investment Management Limited as the Management Company and the Central Depository Company of
Pakistan Limited (CDC) as the Trustee. The Trust Deed was executed on January 9, 2020 and was approved by the
Securities and Exchange Commission of Pakistan (SECP) under the Non-Banking Finance Companies (Establishment
and Regulation) Rules, 2003 (the NBFC Rules) and the Non-Banking Finance Companies and Notified Entities
Regulations, 2008 (the NBFC Regulations). The Management Company has been granted license by the SECP to act
as an Asset Management Company under the NBFC Rules through a certificate of registration issued by the SECP.
Trade Centre, Shahrah-e-Faisal, Karachi 74400, Pakistan.
1.2 The Fund is a Shariah Compliant Exchange Traded Fund that aims to provide investors an opportunity to track the
performance of Meezan Pakistan Index (MZNPI) that has been constituted and is maintained by the Management
Company, and comprises of shariah compliant equity securities selected with high consideration towards market
capitalisation and traded value. Under the Trust Deed, all the conducts and acts of the Fund are based on Shariah
principles. The Management Company has appointed Meezan Bank Limited as its Shariah Advisor to ensure that the
activities of the Fund are in compliance with the principles of Shariah.
1.3 The Fund is a hybrid type of Fund having features of both open and closed end funds. A new concept of "Authorised
Participants "APs" has been introduced who will act as market makers. The Management Company will only have
contact with the APs for issuance and redemption of units. The units of the Fund are tradeable in the Pakistan Stock
Exchange Limited (PSX). The APs to whom the units are issued may either keep the units with themselves or trade in
the PSX. Consequently, upon trading, the holder of the units keeps on changing. Moreover, on issuance and
redemption of units, the basket of shares will be exchanged between AP and Management Company and cash will be
paid / received if there is a difference in the applicable net asset value of a creation unit and the market value of the
portfolio deposit.
1.4 The Fund is an Open Ended Exchange Traded Mutual Fund categorised as "Listed Index Tracking Fund" and is listed
on Pakistan Stock Exchange (PSX) Limited.
1.6 As per the Offering Document approved by the SECP, the accounting period, in case of the first such period, shall
commence from the date on which the trust property is first paid or transferred to the Trustee. Accordingly, these
financial statements have been prepared from October 6, 2020. Hence, there are no corresponding figures for the
period.
processes.
1.8 The Trust Act, 1882 has been repealed due to promulgation of Provincial Trust Act “Sindh Trusts Act, 2020” (the Act)
as empowered under the Eighteenth Amendment to the Constitution of Pakistan. Various new requirements including
registration under the Act have been introduced. The Management Company after fulfilling the requirement for
registration of Trust Deed under the Act, has submitted Collective Investment Scheme Trust Deed to Registrar acting
under the Act for registration.
_______________________________________________Annual Report 2021 | 219

Ordinance,1984; and
Where provisions of and directives issued under the Companies Act, 2017 part VIIIA of the repealed Companies
Ordinance,1984, the NBFC Rules and the requirements of the Trust Deed differ from the IFRSs, the provisions of and
directives issued under the Companies Act, 2017 part VIIIA of the repealed Companies Ordinance,1984 ,the NBFC
Rules, the NBFC Regulations and the requirements of the Trust Deed have been followed.
effective
an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the
revision affects only that period, or in the period of revision and future periods if the revision affects both current and
future periods.
15).
These financial statements have been prepared under the historical cost convention except that investments have
been carried at fair values.
which the Fund operates. These financial statements are presented in Pakistani Rupee, which is the Funds' functional
4.1 The principal accounting policies applied in the preparation of these financial statements are set out below.
_______________________________________________Annual Report 2021 | 220

b) Impairment
The Fund assesses on a forward looking basis the expected credit loss (ECL) associated with it's financial assets
4.3.4 Derecognition
Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have
been transferred and the Fund has transferred substantially all risks and rewards of ownership. Any gain or loss on
derecognition of financial assets is taken to the Income Statement.
4.3.5 Derivatives
_______________________________________________Annual Report 2021 | 221

4.6 Provisions
best estimate.
net assets of the Fund by the number of units in circulation at the period end.
Authorised Participant can purchase the units at the offer price and redeem at the redemption price at any of the
authorised distribution offices during business hours.
The offer price shall be equal to the sum of:
- The Net Asset Value (NAV) as of the close of the previous business day (historical pricing);
- Such amount as the Management Company may consider an appropriate provision for duties and charges
Units of the Fund may be acquired or redeemed directly from the Fund only in Creation Units lot size or multiples
thereof as mentioned in the Offering Document. Investors can sell the units at market prices on PSX which may be
above or below actual NAV of the Fund.
Management Company.
recognised in the financial statements of the period in which such distributions are declared and approved by the
Board of Directors of the Management Company.
redeemed
Element of income represents the difference between net asset value (NAV) per unit on the issuance or redemption
date, as the case may be, of units and the NAV per unit at the beginning of the relevant accounting period.
As clarified by the SECP vide its letter no. SCD/AMCW/ETF/240/2020 dated March 2, 2020 that element of income in
case of Exchange Traded Funds shall be taken to Income Statement both at the time of issuance and redemption of
units to the extent it pertains to Income Statement.
- Gains / (losses) arising on sale of investments are included in the Income Statement, on the date when the
profit or loss' are included in the Income Statement in the period in which they arise.
_______________________________________________Annual Report 2021 | 222

4.12 Expenses
4.13 Taxation
Current
Deferred
Earnings / (loss) per unit is calculated by dividing the net profit / loss of the period after taxation of the Fund by the
weighted average number of units outstanding during the period.
transactions and from the translation at period end exchange rates for monetary assets and liabilities denominated in
Note 2021
5 BALANCES WITH BANK (Rupees in '000)
Balances with bank in:

Savings accounts 5.1 1,186
Current account 5.1 22
1,208
5.1 This balance is maintained with Meezan Bank Limited (a related party) that has an expected profit rate of 2.5% per
annum.
Note 2021
6 INVESTMENTS (Rupees in '000)

Listed equity securities 6.1 38,827
_______________________________________________Annual Report 2021 | 223

6.1 Investment at fair value through profit or loss - Listed equity securities
Unrealised
Sales Carrying Market Paid-up capital Total
Purchases Bonus / As at appreciation/
during value as value as Net of investee market
Name of the investee company during the right June 30, (diminution)
the at June at June assets of company (with value of
period shares 2021 as at June
period 30, 2021 30, 2021 the Fund face value of invest-
30, 2021
investment) ments
-------------------Number of shares---------------------
-------------------------- (Rupees in '000) --------------------------
----------------------------------%---------------------------------
Sectors / companies
Cement
D.G. Khan Cement Company Limited* 57,635 - 39,085 18,550 2,164 2,187 23 5.57 - 5.63
Lucky Cement Limited* 24,248 - 16,548 7,700 5,608 6,648 1,040 16.92 - 17.13
Maple Leaf Cement Limited* 132,858 - 90,158 42,700 1,847 2,006 159 5.11 - 5.17
27.60 - 27.93
Engineering
International Steels Limited* 51,357 - 33,507 17,850 1,655 1,667 12 4.24 - 4.29
4.24 - 4.29
Fertilizer
Engro Corporation Limited * 54,450 - 36,950 17,500 5,376 5,156 (220) 13.12 - 13.28
Engro Fertilizer Company Limited* 166,289 - 112,739 53,550 3,439 3,763 324 9.58 - 9.69
22.70 - 22.97
Unity Foods Limited 175,218 - 114,318 60,900 2,020 2,711 691 6.90 0.01 6.98
6.90 0.01 6.98
Oil and Gas Development Company Limited* 100,457 - 67,907 32,550 3,471 3,093 (378) 7.87 - 7.97
Pakistan Oilfields Limited * 19,438 - 13,138 6,300 2,559 2,481 (78) 6.32 - 6.39
Pakistan Petroleum Limited * 103,724 - 70,124 33,600 3,091 2,917 (174) 7.42 - 7.51
21.61 - 21.87
Hascol Petroleum Limited * 78,300 - 78,300 - - - - - - -
Pakistan State Oil Company Limited* 57,635 - 39,085 18,550 4,250 4,160 (90) 10.59 - 10.71
Sui Northern Gas Company Limited* 21,170 - 21,170 - - - - - - -
10.59 - 10.71
Pharmaceuticals
The Searle Company Limited * 25,846 621 18,067 8,400 2,161 2,038 (123) 5.19 - 5.25
5.19 - 5.25
Total as at June 30, 2021 37,641 38,827 1,186 98.83 100.00
* Nil figures due to rounding off
6.1.1 All shares have a nominal value of Rs 10 each.
Note 2021
6.2 Unrealised appreciation on re-measurement of (Rupees in '000)
investments classified as financial assets
'at fair value through profit or loss'
Market value of investments 6.1 38,827

Carrying value of investments 6.1 37,641
1,186
7 OTHER RECEIVABLES
Profit receivable on saving accounts 24

Receivable from JS Global Capital Limited 33
57
8 PAYABLE TO AL MEEZAN INVESTMENT MANAGEMENT -
MANAGEMENT COMPANY
Remuneration payable 8.1 1

Sindh Sales Tax on remuneration payable 8.2 -
1
_______________________________________________Annual Report 2021 | 224

remuneration at the rate of 0.50% per annum of the average net assets of the Fund during the period from October 6,
2020 to June 30, 2021. The remuneration is payable to the Management Company monthly in arrears.
8.2 During the period from October 6, 2020 to June 30, 2021, an amount of Rs. 0.017 million was charged on account of
sales tax on management fee levied through the Sindh Sales Tax on Services Act, 2011 and an amount of Rs. 0.017
million has been paid to the Management Company which acts as a collecting agent.
Note 2021
9 PAYABLE TO CENTRAL DEPOSITORY (Rupees in '000)
COMPANY OF PAKISTAN LIMITED - TRUSTEE
Remuneration payable 9.1 4

Sindh Sales Tax on remuneration payable to the Trustee 9.2 1
5
deed as follows:
On net assets:
- up to Rs. 1 billion 0.2% per annum of net assets
- over Rs. 1 billion Rs 2 million plus 0.1% per annum of net assets exceeding Rs 1 billion
The above tariff has been revised from November 1, 2021 and the revised rate of tariff was reduced to 50% from
November 1, 2021 to June 30, 2021 which has also been approved by the Board of Directors of the Management
Company.
9.2 During the period from October 6, 2020 to June 30, 2021, an amount of Rs. 0.004 million was charged on account of
sales tax on remuneration of the Trustee levied through the Sindh Sales Tax on Services Act, 2011 and an amount of
Rs. 0.03 million was paid to the Trustee which acts as a collecting agent.
In accordance with the NBFC Regulations, 2008, a collective investment scheme is required to pay annual fee to the
Securities and Exchange Commission of Pakistan.
Accordingly, the Fund has charged the SECP Fee at the rate of 0.02% of average annual net assets of the Fund
during the period from October 6, 2020 to June 30, 2021.
Note 2021
(Rupees in '000)
11 ACCRUED EXPENSES AND OTHER LIABILITIES
Auditors' remuneration payable 100

Charity payable 11.1 40
Brokerage payable 5
Withholding tax payable 737
Zakat payable 80
Other accrued expenses payable 4
Provision for Sindh Workers' Welfare Fund (SWWF) 11.2 123
1,089
donated to charitable purposes. During the period from October 6, 2020 to June 30, 2021, non-Shariah compliant
income amounting to Rs 0.04 million was charged as an expense in the books of the Fund. This will be distributed as
charity after the approval of the Shariah Advisor.
_______________________________________________Annual Report 2021 | 225

Had the provision for SWWF not been recorded in the financial statements of the Fund for the period from October 6,
unit.
There were no contingencies and commitments outstanding as at June 30, 2021.
For the period

from October
6, 2020 to
June 30, 2021
(Rupees in '000)
13 AUDITORS' REMUNERATION
Annual audit fee 100

100
The total expense ratio (TER) of the Fund based on the current period results is 1.42% which includes 0.43%
representing government levies on the Fund such as provision for Sindh Workers' Welfare Fund (if any), sales taxes,
NBFC Regulations for a collective investment scheme categorised as an Index Tracking Fund.
15 TAXATION
required minimum percentage of income earned by the Fund for the period ended June 30, 2021 to the unit holders in
the manner as explained above, no provision for taxation has been made in these financial statements during the
period.
Schedule to the Income Tax Ordinance, 2001. Furthermore, Super tax introduced in Finance Act, 2015 is also not
applicable on funds as Section 4B of Income Tax Ordinance , 2001.
16 TRANSACTIONS WITH CONNECTED PERSONS / RELATED PARTIES
Connected persons / related parties include Al Meezan Investment Management Limited the Management Company,
the Central Depository Company of Pakistan (CDC) being the Trustee, Meezan Bank Limited being the holding
company of the Management Company, Directors and executives of the Management Company, other collective
investment schemes managed by the Management Company, Pakistan Kuwait Investment Company (Private) Limited
being the associated company of the Management Company, Al Meezan Investment Management Limited -
Employees Gratuity Fund and unit holders holding 10 percent or more of the Fund's net assets.
_______________________________________________Annual Report 2021 | 226

Transactions with connected persons / related parties essentially comprise sale and redemption of units, fee on
account of managing the affairs of the Fund, sales load, other charges and distribution payments to connected
persons. The transactions with connected persons / related parties are in the normal course of business, at contracted
rates and at terms determined in accordance with market rates.
Regulations and the Trust Deed.
The details of transactions carried out by the Fund with connected persons / related parties during the period from
October 6, 2020 to June 30, 2021 and balances with them as at period end are as follows:
Balances 2021
(Rupees in '000)
Al Meezan Investment Management Company Limited - Management Company
Remuneration payable to the Management Company 1
Sindh Sales Tax payable on remuneration of the Management Company -
Investment of 1,000,000 units 10,741
Meezan Bank Limited

Balances with bank 1,208
Profit receivable on saving accounts 24

Remuneration payable to the Trustee 4
Sindh Sales Tax on remuneration of the Trustee 1
Transactions during the period For the period

from October
6, 2020 to
June 30, 2021
(Rupees in '000)
Remuneration to the Management Company 133
Sindh Sales Tax on remuneration of the Management Company 17
Units issued: 1,000,000 units 10,015
Meezan Bank Limited

Profit on savings account 27

Remuneration of the Trustee 28
Sindh Sales Tax on remuneration of the Trustee 4
CDS charges 5
statements.
17 FINANCIAL INSTRUMENTS BY CATEGORY --------------------------------------- June 30, 2021 ---------------------------------------

At fair value
At amortised
cost
or loss
--------------------- (Rupees in '000) ---------------------
Financial assets
Balances with bank 1,208 - 1,208
Investments - 38,827 38,827
Other receivables 57 - 57
1,560 38,827 40,387
_______________________________________________Annual Report 2021 | 227

--------------------------------------- June 30, 2021 ---------------------------------------
At fair value
At amortised
cost
or loss
--------------------- (Rupees in '000) ---------------------
Management Company - 1 1
Accrued expenses and other liabilities - 149 149
- 155 155
price risk and profit rate risk) credit risk and liquidity risk. Further, the overall exposure of the Fund complies with the
18.1 Market risk
following the internal guidelines established by the Investment Committee and the regulations laid down by the SECP.
of changes in market profit rates. As of June 30, 2021, the Fund is exposed to such risk on its balances held with
banks. The Investment Committee of the Fund reviews the portfolio of the Fund on a regular basis to ensure that
the risk is managed within the acceptable limits.
constant, the net income / loss for the period from October 6, 2020 to June 30, 2021 and net assets of the Fund
would have been higher / lower by Rs. 0.012 million.
As at June 30, 2021 the Fund does not hold any fixed rate instrument that may expose the Fund to fair value
profit rate risk.
The composition of the Fund's investment portfolio and profit rates are expected to change over time. Accordingly, the
sensitivity analysis prepared as of June 30, 2021 is not necessarily indicative of the impact on the Fund's net assets of
future movements in profit rates.
_______________________________________________Annual Report 2021 | 228

------------------------------------------------------------ 2021 ------------------------------------------------------------
Not exposed
Effective More than
to yield /
profit rate
risk
one year
---------------------------------------- (Rupees in '000) ----------------------------------------

Financial assets
Balances w ith bank 2.5% 1,186 - - - 1,186
Investments - - - 38,827 38,827
Other receivables - - - 57 57
1,186 - - 39,179 40,365
Limited - Management Company - - - 1 1
Accrued expenses and other liabilities - - - 149 149
- - - 155 155
(ii) Currency risk
(iii) Price risk
The Fund has exposure to equity price risk arising from its investments in equity securities. The Fund manages
its price risk arising from investment in the equity securities by diversifying its portfolio within the eligible limits
prescribed in the Fund’s constitutive documents, the NBFC Regulations and circulars issued by the SECP from
time to time. The Fund’s equity investments and their fair values exposed to price risk as at the period end are
concentrated in the sectors given in note 6.1.
In case of 1% increase / decrease in MZNPI on June 30, 2021, with all other variables held constant, the total
comprehensive income of the Fund for the period from October 6, 2020 to June 30, 2021 would increase /
decrease by Rs. 0.388 million and the net assets of the Fund would increase / decrease by the same amount as
a result of gains / losses on equity securities classified as financial assets at fair value through profit or loss.
_______________________________________________Annual Report 2021 | 229

the index. This represents management's best estimate of a reasonable possible shift in the MZNPI, having
regard to the historical volatility of the index. The composition of the Fund's investment portfolio and the
correlation thereof to the MZNPI, is expected to change over time. Accordingly, the sensitivity analysis prepared
as of June 30, 2021 is not necessarily indicative of the effect on the Fund's net assets of future movements in the
level of the MZNPI.
18.2 Liquidity risk
period from October 6, 2020 to June 30, 2021.
-------------------------------------------------------------------------------- 2021 ----------------------------------------------------------------

More than More than Financial
More than
one month three instruments
Within 1 one year More than
and upto months with no Total
month and upto 5 years
three and upto fixed
five years
months one year maturity
--------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------
Financial assets
Investments - - - - - 38,827 38,827
Other receivables 57 - - - - - 57
1,560 - - - - 38,827 40,387
Accrued expenses and other liabilities 149 - - - - - 149
155 - - - - - 155
Net assets / (liabilities) 1,405 - - - - 38,827 40,232
18.3 Credit risk
_______________________________________________Annual Report 2021 | 230

2021
Balance as
Maximum
per
exposure to
statement of
credit risk
assets and
Rupees in '000
Balances with bank 1,208 1,208

Investments 38,827 -
Dividend receivable 295 295
Other receivables 57 57
40,387 1,560
investment in equity securities of Rs. 38.827 million is not exposed to credit risk.
account of its placements with banks and profit accrued on bank balances and dividend receivable. The credit rating
profile of balances with banks is as follows:
% of financial
assets
exposed to
Rating credit risk
2021
AAA 100.00%
_______________________________________________Annual Report 2021 | 231

------------------------- 2021 -------------------------

Level 1 Level 2
----------------------------- (Rupees in '000) ----------------------------
Financial assets 'at fair value through profit or loss'
Shares of listed companies - 'ordinary shares' 38,827 -
every open end scheme shall maintain fund size (i.e. net assets of the Fund) of Rs. 100 million at all times during the
times.
------------------------- 2021 -------------------------

Investment
Category Number of amount Percentage of
unit holders (Rupees in total
'000)
Individuals 268 14,169 36.07

Associated Companies / Directors 1 10,339 26.32
Others 3 14,779 37.62
Total 272 39,287 100%
22 The Fund has traded with only one broker during the period.
_______________________________________________Annual Report 2021 | 232

Aug 9, 2021 Sep 14, 2021
_______________________________________________Annual Report 2021 | 233

_______________________________________________Annual Report 2021 | 234
MEEZAN
DEDICATED EQUITY FUND (MDEF)
Meezan Dedicated Equity Fund aims to provide Fund of Funds scheme a
dedicated equity platform to seek long term capital appreciation.
AUTOMOTIVE
INDUSTRY
HAS PUT PAKISTAN ON THE
FAST TRACK
AS GOVT POLICIES
PROMOTE COMPETITION
FUND INFORMATION
MANAGEMENT COMPANY
Phone (+9221) 35630722-6, 111-MEEZAN
Fax: (+9221) 35676143, 35630808


Syed Owais Wasti
AUDIT COMMITTEE

TRUSTEE
AUDITORS
SHARIAH ADVISER
Meezan Bank Limited
BANKERS TO THE FUND

Al Baraka Islamic Bank B.S.C (E.C)
Dubai Islamic Bank Pakistan Limited
Habib Metropolitan Bank Limited - Islamic Banking
Meezan Bank Limited
LEGAL ADVISER
Bawaney & Partners
Phone (9221) 35156191-94 Fax: (9221) 35156195
TRANSFER AGENT
Phone (+9221) 35630722-6, 111-MEEZAN
Fax: (+9221) 35676143, 35630808
DISTRIBUTORS
Meezan Bank Limited
Meezan Dedicated Equity Fund
Type of Fund
Open end Shariah Compliant Equity Scheme
Objective
The investment objective of the fund is to provide Fund of Funds schemes a dedicated equity platform to
seek long term capital appreciation.
Investment Policy
It primarily invests in Shariah compliant listed equity securities or securities whose listing has been
approved by the exchange. In case the fund manager expects the stock market to drop, based on his
analysis of macroeconomic factors such as interest rates, economic growth rates, political climate,
corporate earnings, stock market valuations, etc., the portfolio may be temporarily allocated to other
allowable asset classes, subject to the prescribed limits.

Jun-21
40% Jun-20
32.0%
30%
21.3%
20% 17.7%
14.0%
8.8% 10.9%
8.6%
10% 6.0% 5.8% 5.2%
4.6% 4.4% 4.2%
3.8% 2.1%
2.0%
0%
Chemical
Fertilizer
Cement
Communication
Oil & Gas Marketing
Textile Composite
Power Generation &

Technology &
Distribution
Companies
Companies
Top Holdings
Lucky Cement Ltd. 9%
Mari Petroleum Ltd. 6%
Meezan Bank Limited 5%
Oil & Gas Development Co Ltd 5%
Pakistan Petroleum Ltd. 5%
Pakistan State Oil Co. Ltd. 4%
Engro Corporation 4%
Kohat Cement Company Ltd 3%
Systems Limited 3%
Maple Leaf Cement Factory Ltd 3%
Performance Review
During fiscal year 2021, Meezan Dedicated Fund (MDEF) provided a positive return of 35.55% to its
investors while KSE Meezan Index (KMI 30) appreciated by 39.32% to close at 76,622 pts.
MDEF KMI-30
MDEF posted a total income of Rs. 282 million in FY21. Total gain comprised of realised gain and
unrealized gain on investments of Rs. 91 million and Rs. 151 million respectively. Dividend income
contributed Rs. 39 million to income while profit on saving accounts with banks amounted to Rs. 1 million.
After accounting for expenses of Rs. 37 million, the Fund posted a net income of Rs. 245 million. The net
assets of the Fund as at June 30, 2021 were Rs. 1,015 million. The net asset value per unit as at June 30,
2021 was Rs. 46.9066.
Charity Statement
representing income that is Haram. During the period ended June 30, 2021 an amount of Rs. 1 million was
Distributions
There is NIL distribution by the Fund during the period ended June 30, 2021.
Breakdown of unit holdings by size
(As on June 30, 2020)
Range (Units) No. of Investors
1 - 9,999 0
10,000 - 49,999 0
50,000 - 99,999 0
100,000 - 499,999 3
500,000 and above 8
Total 11

Number 1 1 0 0
PERFORMANCE TABLE
2021 2020 2019

Net assets (Rs in '000) (ex-distribution) 1,015,343 619,015 1,761,074
Net assets value / redemption price per unit as at June 30 (Rs) 46.9066 34.6044 35.5080
Offer price per unit as at June 30 (Rs) 48.4967 35.7775 36.7120
Highest offer price per unit (Rs) 50.3109 46.2032 51.8269
Lowest offer price per unit (Rs) 36.6120 26.9907 35.8160
Highest redemption price per unit (Rs) 48.6613 44.6883 50.1276
Lowest redemption price per unit (Rs) 35.4116 26.1058 34.6417
Distribution (%) N/A N/A N/A
Date of distribution N/A N/A N/A
Total return (%) 35.55 - 2.56 - 26.80

Average annual return (%) as at June 30, 2021 35.55 14.93 - 1.12
Past performance is not necessarily indicative of future performance and unit prices and investment returns may go
down, as well as up.
MEEZAN DEDICATED EQUITY FUND
AS AT JUNE 30, 2021
Note 2021 2020

-------Rupees in '000'-------
Assets
Investments 6 990,186 595,501
Dividend receivable 3,639 178
Advances, deposits and other receivable 7 17,859 3,929
Total assets 1,024,434 626,848
Liabilities
Pakistan (SECP) 10 177 209
Payable against purchase of investments 8 2,616
Payable against redemption and conversion of units - 36
NET ASSETS 1,015,344 619,015
UNIT HOLDERS' FUND (AS PER STATEMENT ATTACHED) 1,015,344 619,015

_____________________ _____________________ _____________________

_______________________________________________Annual Report 2021 | 334

INCOME STATEMENT
Note 2021 2020

-------Rupees in '000'-------
Income
Profit on balances with banks 794 7,587
Realised gain / (loss) on sale of investments - net 90,624 (164,323)
Other income - 500
130,878 (108,486)
Net unrealised appreciation on re-measurement of investments
classified as financial assets at 'fair value through profit or loss' 6.2 151,135 30,683
Total income / (loss) 282,013 (77,803)
Expenses
Allocated expenses 8.3 916 1,028
Annual fees to the Securities and Exchange Commission of Pakistan (SECP) 10 177 209
Printing expense - 10
Fee and subscription 563 570
Taxation 15 - -

Net income for the year after taxation 244,863 -
Income already paid on units redeemed (59,731) -
185,132 -
185,132 -

_____________________ _____________________ _____________________

_______________________________________________Annual Report 2021 | 335

Note 2021 2020

-------Rupees in '000'-------
Other comprehensive income / (loss) for the year - -
Total comprehensive income / (loss) for the year 244,863 (115,802)

_____________________ _____________________ _____________________

_______________________________________________Annual Report 2021 | 336

2021 2020
Capital Accumulated Capital Accumulated

Total Total
value losses value losses
-------------------------------------------------(Rupees in '000)-------------------------------------------------
-------------------------------------------------(Rupees in '000)----------------------------------------------
Net assets at the beginning of the year 1,410,246 (791,231) 619,015 2,436,503 (675,429) 1,761,074
Issue of 15,202,495 units (2020: 51,715,292 units)

the beginning of the year) 526,073 - 526,073 1,836,312 - 1,836,312
- Element of income / (loss) 108,554 - 108,554 (2,447) - (2,447)
Total proceeds on issuance of units 634,627 - 634,627 1,833,865 - 1,833,865

beginning of the year) 396,039 - 396,039 2,962,206 - 2,962,206
- Element of loss / (income) 27,391 59,731 87,122 (102,084) - (102,084)
Total payments on redemption of units 423,430 59,731 483,161 2,860,122 - 2,860,122
Total comprehensive income / (loss) for the year - 244,863 244,863 - (115,802) (115,802)
Net assets at the end of the year 1,621,443 (606,099) 1,015,344 1,410,246 (791,231) 619,015

- Realised loss (821,914) (336,679)
(791,231) (675,429)

185,132 -
Net loss for the year after taxation - (115,802)
Accumulated losses carried forward (606,099) (791,231)
Accumulated losses carried forward

- Realised loss (757,234) (821,914)
- Unrealised gain 151,135 30,683
(606,099) (791,231)
(Rupees) (Rupees)

_____________________ _____________________ _____________________

_______________________________________________Annual Report 2021 | 337

CASH FLOW STATEMENT
Note 2021 2020

-------Rupees in '000'-------
Adjustments for
Net unrealised appreciation on re-measurement of
investments classified assets at 'fair value through profit or loss' 6.2 (151,135) (30,683)
93,728 (146,485)
Investments - net (243,550) 1,094,109
Dividend receivable (3,461) 942
Receivable against sale of investments 2,628 (5,113)
Advances, deposits and other receivable (13,930) (2,043)
(258,313) 1,087,895
Payable to Al Meezan Investment Management Limited - Management Company (559) (3,468)
Payable to the Securities and Exchange Commission of Pakistan (SECP) (32) (1,655)
Payable against purchase of investments (2,608) 2,616
Accrued expenses and other liabilities 4,416 403
1,293 (2,250)
Net cash (used in) / generated from operating activities (163,292) 939,160
Receipts against issuance and conversion of units 634,627 1,833,865

Payment against redemption and conversion of units (483,197) (2,861,586)
Net cash generated from / (used in) financing activities 151,430 (1,027,721)
Net decrease in cash and cash equivalents during the year (11,862) (88,561)

_____________________ _____________________ _____________________

_______________________________________________Annual Report 2021 | 338

1.1 Meezan Dedicated Equity Fund (the Fund) was established under a Trust Deed executed between Al Meezan
Investment Management Limited as the Management Company and the Central Depository Company of Pakistan
Limited (CDC) as the Trustee. The Trust Deed was executed on October 9, 2017 and was approved by the Securities
and Exchange Commission of Pakistan (SECP) under the Non-Banking Finance Companies (Establishment and
Regulation) Rules, 2003 (the NBFC Rules) and the Non-Banking Finance Companies and Notified Entities
Regulations, 2008 (the NBFC Regulations). The Management Company has been granted license by the SECP to act
as an Asset Management Company under the NBFC Rules through a certificate of registration issued by the SECP.
Trade Centre, Shahrah-e-Faisal, Karachi 74400, Pakistan.
1.2 The Fund has been formed to enable the unit holders to participate in a diversified portfolio of securities, which are
Shariah compliant. Under the Trust Deed, all the conducts and acts of the Fund are based on Shariah principles. The
Management Company has appointed Meezan Bank Limited as its Shariah Advisor to ensure that the activities of the
Fund are in compliance with the principles of Shariah.
1.3 The Fund is an open-end Shariah Compliant Equity Scheme. Units are offered for public subscription on a continuous
basis. The units are transferable and can be redeemed by surrendering them to the Fund. The Fund is listed on the
Pakistan Stock Exchange Limited.
processes.
1.6 The Trust Act, 1882 has been repealed due to promulgation of Provincial Trust Act “Sindh Trusts Act, 2020” (the Act)
as empowered under the Eighteenth Amendment to the Constitution of Pakistan. Various new requirements including
registration under the Act have been introduced. The Management Company after fulfilling the requirement for
registration of Trust Deed under the Act, has submitted Collective Investment Scheme Trust Deed to Registrar acting
under the Act for registration.
Ordinance,1984; and
Where provisions of and directives issued under the Companies Act, 2017 part VIIIA of the repealed Companies
Ordinance,1984, the NBFC Rules and the requirements of the Trust Deed differ from the IFRSs, the provisions of and
directives issued under the Companies Act, 2017 part VIIIA of the repealed Companies Ordinance,1984 ,the NBFC
Rules, the NBFC Regulations and the requirements of the Trust Deed have been followed.
_______________________________________________Annual Report 2021 | 339

There are certain amendments to the published accounting and reporting standards that are mandatory for the
Fund's annual accounting period beginning on July 1, 2020. However, these do not have any significant impact on
the Fund's operations and, therefore, have not been detailed in these financial statements.
effective
an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if
the revision affects only that period, or in the period of revision and future periods if the revision affects both current
and future periods.
15).
These financial statements have been prepared under the historical cost convention except that investments have
been carried at fair values.
which the Fund operates. These financial statements are presented in Pakistani Rupee, which is the Funds'
functional and presentation currency.
Financial assets are recognised at the time the Fund becomes a party to the contractual provisions of the
instruments. These are initially recognised at fair value plus transaction costs except for financial assets carried 'at
fair value through profit or loss'. Financial assets carried 'at fair value through profit or loss' are initially recognised at
fair value and transaction costs are recognised in the Income Statement.
_______________________________________________Annual Report 2021 | 340

Since all investments in equity instruments have been designated as FVPL, the subsequent movement in the fair
value of equity securities is routed through the Income Statement.
b) Impairment
The fund assesses on a forward looking basis the expected credit loss (ECL) associated with it's financial assets
- Reasonable and supportable information that is available without undue cost or effort at the reporting date
about past events, current conditions and forecasts of future economic conditions.
4.3.4 Derecognition
4.3.5 Derivatives
A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expired. Any
gain or loss on derecognition of financial liabilities is taken to the Income Statement.
Liabilities' when there is a legally enforceable right to set off the recognised amounts and there is an intention to
settle on a net basis, or to realise the assets and settle the liabilities simultaneously.
_______________________________________________Annual Report 2021 | 341

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
best estimate.
The Net Asset Value (NAV) per unit as disclosed in the Statement of Assets and Liabilities is calculated by dividing
the net assets of the Fund by the number of units in circulation at the year end.
Units issued are recorded at the offer price, determined by the Management Company for the applications received
by the Management Company / distributors during business hours on that day. The offer price represents the Net
Asset Value (NAV) per unit as of the close of the business day, plus the allowable sales load and provision of any
duties and charges if applicable. The sales load is payable to the Management Company / distributors.
distributors receive redemption applications during business hours of that day. The redemption price is equal to NAV
as of the close of the business day, less an amount as the Management Company may consider to be an appropriate
Management Company. Based on Mutual Funds Association of Pakistan's (MUFAP) guidelines duly consented by
recognised in the financial statements of the period in which such distributions are declared and approved by the
Board of Directors of the Management Company.
redeemed
date, as the case may be, of units and the NAV per unit at the beginning of the relevant accounting period. Further,
unit holders' fund. However, to maintain the same ex-dividend NAV of all units outstanding on the accounting date,
net element of income contributed on issue of units lying in unit holders fund is refunded on units in the same
proportion as dividend bears to accounting income available for distribution.
- Gains / (losses) arising on sale of investments are included in the Income Statement currently, on the date when
the transaction takes place.
profit or loss' are included in the Income Statement in the period in which they arise.
4.12 Expenses
All expenses chargeable to the Fund including remuneration of the Management Company and Trustee and annual
fee of the SECP are recognised in the Income Statement on an accrual basis.
_______________________________________________Annual Report 2021 | 342

4.13 Taxation
Current
Deferred
Note 2021 2020

5 BALANCES WITH BANKS (Rupees in '000)

Current accounts 1,161 3,742
10,265 22,127
related party) that has an expected profit rate of 2.5% (2020: 3.00%) per annum. Other profit and loss sharing
accounts of the Fund have expected profit rates ranging from 2.24% to 7.20% per annum (2020: 1.50% to 7.50% per
annum).
Note 2021 2020

6 INVESTMENTS (Rupees in '000)

Listed equity securities 6.1 990,186 595,501
_______________________________________________Annual Report 2021 | 343

6.1 Investment at fair value through profit or loss - Listed equity securities
Unrealised
Paid-up
appreciati
Carrying Market capital of Total
Purchases Bonus / Sales on /
As at July 1, As at June value as at value as at Net investee market
Name of the investee company during the right during the (diminutio
2020 30, 2021 June 30, June 30, assets of company value of
year shares year n) as at
2021 2021 the Fund (with face invest-
June 30,
value of ments
2021
investment)
-------------------------- Number of shares --------------------------
-------------------------- (Rupees in '000) --------------------------
----------------------------------%---------------------------------
Pak Suzuki Motor Company Limited - 38,000 - 5,000 33,000 9,936 11,730 1,794 1.16 0.04 1.18
Honda Atlas Cars (Pakistan) Limited 10,100 - - 10,100 - - - - - - -
Indus Motor Company Limited 4,740 - - 4,740 - - - - - - -
Millat Tractors Limited 2,000 10,650 1,581 - 14,231 11,259 15,364 4,105 1.51 0.03 1.55
2.67 0.07 2.73
Automobile Parts & Accessories
Agriauto Industries Limited (Note 6.1.1) 20,000 - - 20,000 - - - - - - -
Panther Tyres Limited - 11,328 - - 11,328 745 783 38 0.08 0.01 0.08
0.08 0.01 0.08
- - -
Commercial Bank
BankIslami Pakistan Limited 79,990 525,000 - 298,000 306,990 3,209 3,451 242 0.34 0.03 0.35
Meezan Bank Limited (an associate) 261,005 205,900 33,600 60,000 440,505 32,694 50,839 18,145 5.01 0.03 5.13
5.35 0.06 5.48
Cement
Attock Cement Pakistan Limited 15,200 51,800 - 67,000 - - - - - - -
Cherat Cement Company Limited 45,000 141,100 - 45,000 141,100 22,813 25,028 2,215 2.46 0.07 2.53
D.G. Khan Cement Company Limited 81,000 372,000 - 208,748 244,252 28,029 28,802 773 2.84 0.06 2.91
Fauji Cement Company Limited 191,500 450,000 - 441,500 200,000 4,882 4,600 (282) 0.45 0.01 0.46
Kohat Cement Company Limited 132,370 63,800 - 33,900 162,270 25,876 33,507 7,631 3.30 0.08 3.38
Maple Leaf Cement Factory Limited 130,000 988,000 - 453,000 665,000 26,252 31,242 4,990 3.08 0.06 3.16
Pow er Cement Limited - 500,000 - 500,000 - - - - - - -
21.48 0.31 22.02
Chemical
Dynea Pakistan Limited (note 6.1.1) - 20,000 - - 20,000 4,188 4,420 232 0.44 0.21 0.45
Engro Polymer & Chemicals Limited 262,644 699,500 - 616,000 346,144 14,194 16,352 2,158 1.61 0.04 1.65
Ghani Global Holdings Limited - 1,780,000 97,000 1,877,000 - - - - - - -
ICI Pakistan Limited 25,300 5,000 - 5,950 24,350 17,099 21,155 4,056 2.08 0.03 2.14
Ittehad Chemical Limited 50,000 - - 50,000 - - - - - - -
Lotte Chemical Pakistan Limited 111,500 100,000 - 211,500 - - - - - - -
Nimir Resins Limited - 600,000 - 592,500 7,500 96 151 55 0.01 0.01 0.02
Sitara Chemical Limited - 14,500 - - 14,500 5,446 5,104 (342) 0.50 0.07 0.52
4.64 0.36 4.78
Engineering
Agha Steel Industries Limited - 510,000 - 455,500 54,500 1,808 1,838 30 0.18 0.01 0.19
Amreli Steels Limited - 110,000 - - 110,000 3,026 2,740 (286) 0.27 0.04 0.28
International Industries Limited 50,700 112,000 - 86,000 76,700 14,155 16,185 2,030 1.59 0.06 1.63
International Steels Limited 120,000 125,000 - 133,000 112,000 8,585 10,462 1,877 1.03 0.03 1.06
Ittefaq Iron Industries Limited - 575,000 - 200,000 375,000 7,385 7,106 (279) 0.70 0.26 0.72
Mughal Iron & Steel Industries Limited 29,500 345,800 - 258,000 117,300 9,498 12,246 2,748 1.21 0.04 1.24
4.98 0.44 5.12
Fertilizer
Engro Corporation Limited 199,326 96,668 - 148,450 147,544 43,965 43,465 (500) 4.28 0.03 4.39
Engro Fertilizers Limited 422,393 442,015 - 635,021 229,387 15,071 16,119 1,048 1.59 0.02 1.63
Fatima Fertilizer Limited 57,000 - - 57,000 - - - - - - -
5.87 0.05 6.02
- - -
Unrealised
Paid-up
appreciati
_______________________________________________Annual
2021 2021
June 30, Report 2021 | 344
the Fund (with face invest-
value of ments
- - -
Unrealised
Paid-up
appreciati
June 30,
value of ments
2021
investment)
-------------------------- Number of shares --------------------------
-------------------------- (Rupees in '000) --------------------------
----------------------------------%---------------------------------
Food & Personal Care Product

At-Tahur Limited 91 - 9 100 - - - - - - -
- - -
Glass & Ceramics
Ghani Glass Limited 100,000 34,650 - 37,000 97,650 2,939 4,707 1,768 0.46 0.02 0.48
Ghani Global Glass Limited - 1,094,400 - 1,094,400 - - - - - - -
Shabbir Tiles And Ceramics Limited - 552,000 - 14,500 537,500 12,032 17,926 5,894 1.77 0.33 1.81
(Note 6.1.1)
Tariq Glass Industries Limited - - - - - - - - - - -
2.23 0.35 2.29
Leather & Tanneries
Service Global Footw ear Limited - 46,113 - - 46,113 2,453 2,667 214 0.26 0.02 0.27
0.26 0.02 0.27
Miscellaneous
Shifa International Hospital Limited - 7,000 - 7,000 - - - - - - -
Synthetic Products Enterprises Limited - 52,250 - 52,250 - - - - - - -
The Organic Meat Company Limited - 110,000 - 110,000 - - - - - - -
- - -
Oil & Gas Development Company Limited 483,200 334,535 - 293,440 524,295 55,483 49,824 (5,659) 4.91 0.01 5.03
Pakistan Petroleum Limited 420,404 424,330 - 312,282 532,452 48,322 46,233 (2,089) 4.55 0.02 4.67
17.83 0.08 18.29
Attock Petroleum Limited 21,200 - - 21,200 - - - - - - -
Hascol Petroleum Limited 390,948 300,000 - 690,948 - - - - - - -
Hi -Tech Lubricants Limited 100,000 50,000 - 150,000 - - - - - - -
(Note 6.1.2)
Shell Pakistan Limited - 25,500 - 25,500 - - - - - - -
Sui Northern Gas Pipelines Limited 213,600 543,000 - 394,865 361,735 16,538 17,573 1,035 1.73 0.06 1.77
Sui Southern Gas Company Limited - - - - - - - - - - -
6.10 0.10 6.25
Paper and Board
Century Paper Limited 45,000 100,000 19,000 54,000 110,000 8,793 13,428 4,635 1.32 0.06 1.36
Cherat Packaging Limited - 10,000 - - 10,000 2,200 1,446 (754) 0.14 0.02 0.15
Packages Limited 32,650 14,000 - 6,400 40,250 15,697 21,944 6,247 2.16 0.05 2.22
Roshan Packages Limited 50,500 75,000 - 19,000 106,500 3,384 3,508 124 0.35 0.08 0.35
3.97 0.21 4.08
Pharmaceuticals
AGP Limited 147,000 3,000 - 55,000 95,000 10,398 11,146 748 1.10 0.03 1.13
Ferozsons Laboratories Limited* - 100 20 - 120 38 42 4 - - -
GlaxosmithKline Consumer Healthcare
Limited 12,900 - - 3,700 9,200 2,499 2,301 (198) 0.23 0.01 0.23
Highnoon Laboratories Limited 5,400 - - 5,400 - - - - - - -
IBL HealthCare Limited - 103,000 - - 103,000 11,761 11,446 (315) 1.13 0.19 1.16
4.58 0.27 4.69
Pow er Generation and Distribution
The Hub Pow er Company Limited 587,754 511,000 - 722,099 376,655 31,786 30,008 (1,778) 2.96 0.01 3.03
K-Electric Limited (note 6.1.1) 2,054,500 3,444,000 - 2,500,000 2,998,500 11,435 12,534 1,099 1.23 0.03 1.27
4.19 0.04 4.30
Refinery
Attock Refinery Limited - 235,000 - 200,000 35,000 9,005 8,976 (29) 0.88 0.03 0.91
Byco Petroleum Pakistan Limited - 1,110,000 - 50,000 1,060,000 11,462 12,307 845 1.21 0.02 1.24
National Refinery Limited - 8,000 - - - - - - - -
2.09 0.05 2.15
Unrealised
Paid-up
appreciati
_______________________________________________Annual
Name of the investee company
2020
during the right during the
30, 2021 June 30, June 30,
(diminutio
assetsReport
of company 2021
value of | 345
4.19 0.04 4.30
Refinery
Attock Refinery Limited - 235,000 - 200,000 35,000 9,005 8,976 (29) 0.88 0.03 0.91
Byco Petroleum Pakistan Limited - 1,110,000 - 50,000 1,060,000 11,462 12,307 845 1.21 0.02 1.24
National Refinery Limited - 8,000 - - - - - - - -
2.09 0.05 2.15
Unrealised
Paid-up
appreciati
June 30,
value of ments
2021
investment)
-------------------------- Number of shares --------------------------
-------------------------- (Rupees in '000) --------------------------
----------------------------------%---------------------------------
Technology & Communication

Avanceon Limited 147,400 326,500 32,680 310,500 196,080 13,843 17,977 4,134 1.77 0.08 1.82
Netsol Technologies Limited - 115,000 - 115,000 - - - - - - -
Pakistan Telecommunication Company - 500,000 - 500,000 - - - - - - -
Limited
Systems Limited 62,800 27,900 5,170 37,000 58,870 12,904 32,980 20,076 3.25 0.04 3.30
World Call Telecom Limited - 650,000 - - 650,000 2,421 2,574 153 0.25 0.04 0.26
5.27 0.16 5.38
Textile Composite
Feroze1888 Mills Limited 91,300 25,500 - 73,500 43,300 3,916 4,352 436 0.43 0.01 0.44
Kohinoor Textile Mills Limited - 90,000 - - 90,000 6,457 6,768 311 0.67 0.03 0.68
Interloop Limited 207,382 108,500 - 5,000 310,882 15,691 21,771 6,080 2.14 0.04 2.20
Nishat Mills Limited 56,200 177,000 - 106,000 127,200 12,495 11,868 (627) 1.17 0.04 1.20
4.41 0.12 4.52
Vanaspati & Allied Industries
Unity Foods limited 100,000 1,015,000 - 770,000 345,000 11,125 15,359 4,234 1.51 0.03 1.55
1.51 0.03 1.55
Total as at June 30, 2021 839,051 990,186 151,135 97.51 100.00
Total as at June 30, 2020 564,818 595,501 30,683 96.20

* Nil figures due to rounding off difference
6.1.1 All shares have a nominal value of Rs 10 each except for the shares of Agriauto Industries Limited, Dynea Pakistan
Limited and Shabbir Tiles and Ceramics Limited which have a nominal value of Rs 5 each and K-Electric Limited
which have a nominal value of Rs 3.5 each.
were liable to withhold five percent of the bonus shares to be issued. The shares so withheld were only to be
released if the Fund deposits tax equivalent to five percent of the value of the bonus shares issued to the Fund
including bonus shares withheld, determined on the basis of day-end price on the first day of closure of books of the
issuing company.
CISs. The petition was based on the fact that because CISs are exempt from deduction of income tax under Clause
99 Part I to the Second Schedule of the Income Tax Ordinance 2001, the withholding tax provision should also not be
in favour of CISs.
the suits which are already pending or shall be filed in future must only be continued / entertained on the condition
that a minimum of 50 percent of the tax calculated by the tax authorities is deposited with the authorities. Accordingly,
the CISs were required to pay minimum 50% of the tax calculated by the tax authorities for the case to remain
continued. The CISs failed to deposit the minimum 50% of the tax liability and accordingly the stay got vacated
automatically during the year ended June 30, 2019. During the year ended June 30, 2020, the CISs had filed a fresh
constitutional petition via CP 4653 dated July 11, 2019. In this regard, on July 15, 2019, the Honourable High of
Sindh had issued notices to the relevant parties and had ordered that no third party interest on bonus shares issued
to the Funds in lieu of their investments be created in the meantime. The matter is still pending adjudication and the
Funds have included these shares in their portfolio, as the Management is confident that the decision of the
constitutional petition will be in favour of the CISs.
_______________________________________________Annual Report 2021 | 346

As at June 30, 2021, the bonus shares of the Fund withheld by certain companies at the time of declaration of bonus
shares amounted to Rs. 0.365 million (2020: Rs. 0.257 million).
Note 2021 2020

6.2 Unrealised appreciation on re-measurement of (Rupees in '000)
investments classified as financial assets
'at fair value through profit or loss'
Market value of investments 6.1 990,186 595,501

Carrying value of investments 6.1 839,051 564,818
151,135 30,683
7 ADVANCES, DEPOSITS AND OTHER RECEIVABLE

Advance tax 7.1 1,296 1,296
Advance against Initial Public Offer 13,867 -
Security deposit with Central Depository Company
of Pakistan Limited 103 103
Security deposit with the National Clearing
Company of Pakistan Limited 2,500 2,500
17,859 3,929
7.1 As per clause 47(B) of part IV of the Second Schedule to the Income Tax Ordinance, 2001, payments made to
collective investment schemes (CISs) are exempt from withholding tax under section 151 and 150. However,
withholding tax on dividend paid to the Fund has been deducted by various withholding agents based on the
interpretation issued by FBR vide letter C. no. 1(43) DG (WHT)/2008-VOL.II-66417-R dated 12 May 2015 which
requires every withholding agent to withhold income tax at applicable rates in case a valid exemption certificate under
section 159(1) issued by the concerned Commissioner of Inland Revenue (CIR) is not produced before him by the
withholdee. The tax withheld on dividends as at June 30, 2021 amounts to Rs 1.296 million (June 30, 2020: Rs. 1.296
million).
For this purpose, the Mutual Funds Association of Pakistan (MUFAP) on behalf of various mutual funds (including the
Funds being managed by the Management Company) had filed a petition in the Honourable Sindh High Court (SHC)
challenging the above mentioned interpretation of the Federal Board of Revenue (FBR) which was decided by the
SHC in favour of FBR. On January 28, 2016, the Board of Directors of the Management Company passed a
resolution by circulation, authorising all CISs to file an appeal in the Honourable Supreme Court through their
Trustees, to direct all persons being withholding agents, including share registrars and banks to observe the
provisions of clause 47B of Part IV of the Second Schedule to the Income Tax Ordinance, 2001 without imposing any
conditions at the time of making any payment to the CISs being managed by the Management Company.
Accordingly, a petition was filed in the Supreme Court of Pakistan by the Funds together with other CISs (managed
by the Management Company and other Asset Management Companies) whereby the Supreme Court granted the
petitioners leave to appeal from the initial judgment of the SHC. Pending resolution of the matter, the amount of
withholding tax deducted on profit received by the Fund on dividends has been shown as other receivables as at
June 30, 2021 as, in the opinion of the Management, the amount of tax deducted at source will be refunded.
Note 2021 2020

8 PAYABLE TO AL MEEZAN INVESTMENT MANAGEMENT - (Rupees in '000)
MANAGEMENT COMPANY
Remuneration payable 8.1 121 1,024

Sindh Sales Tax on remuneration payable 8.2 16 133
Selling and marketing expenses payable 8.4 974 603
1,259 1,818
8.1 As per regulation 61 of the NBFC Regulations, 2008, the Management Company is entitled to a remuneration equal
to an amount not exceeding the maximum rate of management fee as disclosed in the Offering Document subject to
the total expense ratio limit. Keeping in view the maximum allowable threshold, the Management Company has
charged its remuneration at the rate of 2% (2020: 2%) per annum of the average net assets of the Fund during the
year June 30, 2021. The remuneration is payable to the Management Company monthly in arrears.
_______________________________________________Annual Report 2021 | 347

8.2 During the year, an amount of Rs. 2.303 million (2020: Rs 2.674 million) was charged on account of sales tax on
Management fee levied through the Sindh Sales Tax on Services Act, 2011, and an amount of Rs. 2.420 million
(2020: Rs. 2.933 million) has been paid to the Management Company which acts as a collecting agent.
expenses related to registrar services, accounting, operation and valuation services, related to a Collective
Investment Scheme (CIS).
The Management Company based on its own discretion has charged 0.1% of the average annual net assets of the
Fund for allocation of such expenses to the Fund from July 1, 2020 till March 9, 2021 and 0.11% with effect from
March 10, 2021 subject to not being higher than the actual expense. These expenses have also been approved by
the Board of Directors of the Management Company. (2020: 0.1%).
Management Company, based on its own discretion has determined a capping of 0.4% (2020: 0.4%) of the average
annual net assets of the Fund for charging of selling and marketing expenses to the Fund which has also been
approved by the Board of Directors of the Management Company.
9 PAYABLE TO CENTRAL DEPOSITORY Note (Rupees in '000)

COMPANY OF PAKISTAN LIMITED - TRUSTEE

193 117
deed as follows:
On net assets:
- up to Rs. 1 billion Rs 0.7 million or 0.2% per annum of net assets, whichever is higher.
- over Rs. 1 billion Rs 2 million plus 0.1% per annum of net assets exceeding Rs 1 billion
In accordance with the NBFC Regulations, 2008, a collective investment scheme is required to pay annual fee to the
Securities and Exchange Commission of Pakistan.
Accordingly, the Fund has charged the SECP Fee at the rate of 0.02% (2020: 0.02%) of average annual net assets of
the Fund during the current year.
Note 2021 2020

11 ACCRUED EXPENSES AND OTHER LIABILITIES (Rupees in '000)

Brokerage payable 683 982
Withholding tax payable 81 -
7,453 3,037
donated to charitable purposes. Accordingly, an amount of Rs. 1.189 million (June 30, 2020: Rs. 1.467 million) is
outstanding in this regard.
_______________________________________________Annual Report 2021 | 348

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 had taken up the matter with the
Sindh Finance Ministry to have CISs / mutual funds excluded from the applicability of SWWF. In view of the above
developments regarding the applicability of SWWF on CISs / mutual funds, MUFAP recommended that, as a matter
of abundant caution, provision in respect of SWWF should be made on a prudent basis with effect from the date of
enactment of the SWWF Act, 2014 (i.e. starting from May 21, 2015).
unit (2020: nil).
2021 2020
13 AUDITORS' REMUNERATION (Rupees in '000)

Out of pocket expense 3 3
207 386
representing government levies on the Fund such as provision for Sindh Workers' Welfare Fund (if any), sales taxes,
NBFC Regulations for a collective investment scheme categorised as an Equity Scheme.
15 TAXATION
by capital gains, whether realised or unrealised, is distributed amongst the unit holders as cash dividend.
Furthermore, as per Regulation 63 of the Non-Banking Finance Companies and Notified Entities Regulations, the
Fund is required to distribute not less than 90% of its accounting income for the year derived from sources other than
capital gains as reduced by such expenses as are chargeable thereon to the unit holders. Since the management has
unit holders in the manner as explained above, no provision for taxation has been made in these financial statements
during the year.
Schedule to the Income Tax Ordinance, 2001. Furthermore, Super tax introduced in Finance Act, 2015 is also not
applicable on funds as Section 4B of Income Tax Ordinance , 2001.
Connected persons include Al Meezan Investment Management Limited the Management Company, the Central
Depository Company of Pakistan (CDC) being the Trustee, Meezan Bank Limited being the holding company of the
Management Company, Directors and executives of the Management Company, other collective investment schemes
managed by the Management Company, Pakistan Kuwait Investment Company (Private) Limited being the
associated company of the Management Company, Al Meezan Investment Management Limited - Employees
Gratuity Fund and unit holders holding 10 percent or more of the Fund's net assets.
_______________________________________________Annual Report 2021 | 349

Transactions with connected persons are executed on an arm's length basis and essentially comprise sale and
redemption of units, fee on account of managing the affairs of the Fund, sales load, other charges and distribution
payments to connected persons. The transactions with connected persons are in the normal course of business, at
contracted rates and at terms determined in accordance with market rates.
Remuneration to the Management Company of the Fund is determined in accordance with the provisions of the
NBFC Regulations and the Trust Deed.
The details of transactions carried out by the Fund with connected persons / related parties during the year and
balances with them as at year end are as follows:
Balances 2021 2020

(Rupees in '000)
Al Meezan Investment Management Company Limited - Management Company
Remuneration payable to the Management Company 121 1,024
Selling and marketing expenses payable 974 603
Meezan Bank Limited

Balances with bank 1,658 10,123
Investments of shares: 440,505 shares (2020: 261,005 shares) 50,839 17,970

Meezan Financial Planning Fund of Funds MAAP I

Investment of 1,253,414 units (2020: 2,948,758) 58,793 102,040
Meezan Strategic Allocation Fund MSAP - I

Meezan Strategic Allocation Fund MSAP - II

Meezan Strategic Allocation Fund MSAP - III

Meezan Strategic Allocation Fund MSAP - IV

Meezan Strategic Allocation Fund MSAP - V

Meezan Strategic Allocation Fund MCPP-III

Investment of 1,066,314 units (2020: nil units) 50,017 -
Meezan Strategic Allocation Fund -II MCPP-IV

Meezan Strategic Allocation Fund -II MCPP-V

Investment of 329,431 units (2020: nil units) 15,452 -
Meezan Strategic Allocation Fund-II MCPP-VII

Investment of 181,851 units (2020: nil units) 8,530 -
Meezan Strategic Allocation Fund-III MCPP - IX

_______________________________________________Annual Report 2021 | 350

(Rupees in '000)
Allocated expenses 916 1,028
Selling and marketing expense 3,542 4,114
Meezan Bank Limited

Profit on savings account 115 5,405
Shares purchased during the year: 205,900 shares
(2020: 15,000 shares) 18,799 1,508
Shares sold during the year: 60,000 shares
(2020: 329,500 shares) 6,465 24,874
Bonus shares : 33,600 shares (2020: nil) - -
Dividend income 3,256 -

CDS charges 92 135

Units issued: nil (2020: 2,108,051) - 61,000
Units redeemed: 1,695,344 units (2020: 10,428,442) 73,560 353,940
Meezan Strategic Allocation Fund MSAP - I

Units issued: nil (2020: 5,251,784) - 152,000
Units redeemed: 2,625,619 units ( 2020: 7,953,695) 107,310 275,200
Meezan Strategic Allocation Fund MSAP - II

Units issued: 96,045 units (2020: nil units) 4,000 -
Units redeemed: 20,355 units (2020: 918,352) 930 38,300
Meezan Strategic Allocation Fund MSAP - III

Units issued: 423,194 units (2020:3,501,696) 19,000 113,000
Units redeemed: nil (2020: 2,609,468) - 93,500
Meezan Strategic Allocation Fund MSAP - IV

Units issued: nil (2020: 4,574,900) - 150,716
Units redeemed: 318,473 units (2020: 3,625,362) 14,750 144,364
Meezan Strategic Allocation Fund MSAP - V

Units issued: nil (2020: 792,958) - 27,000
Units redeemed: 103,666 units (2020: 769,702) 4,830 29,650
Meezan Strategic Allocation Fund MCPP-III

Units issued: 1,617,588 units (2020:12,671,266) 73,600 470,400
Units redeemed: 551,274 units (2020: 18,315,886) 25,090 614,406
Meezan Strategic Allocation Fund -II MCPP-IV

Units issued: 10,955,635 units (2020: 11,288,176) 448,950 437,700
Meezan Strategic Allocation Fund -II MCPP-V

Units redeemed: 380,707 units (2020: 5,025,826 units) 16,785 172,285
Meezan Strategic Allocation Fund-II MCPP-VI

Units issued: nil (2020: 1,458,405 units) - 58,200
Units redeemed: nil (2020: 4,203,715 units) - 139,374
_______________________________________________Annual Report 2021 | 351

(Rupees in '000)
Meezan Strategic Allocation Fund-II MCPP-VII
Units redeemed: 15,621 units (2020: 2,674,544 units) 750 89,075
Meezan Strategic Allocation Fund-II MCPP-VIII

Units issued: nil ( 2020: 2,929,551 units) - 103,750
Units redeemed: nil (2020: 3,448,117 units) - 117,124
Meezan Strategic Allocation Fund-III MCPP - IX

statements.
17 FINANCIAL INSTRUMENTS BY CATEGORY ------------------------------ 2021 ------------------------------

At fair value
At amortised
cost
or loss
----------------------------- (Rupees in '000) -----------------------------
Financial assets
Investments - 990,186 990,186
Receivable against sale of investment 2,485 - 2,485
32,952 990,186 1,023,138
------------------------------ 2021 ------------------------------

At fair value
At amortised
cost
or loss
----------------------------- (Rupees in '000) -----------------------------
Payable against redemption and conversion of units - - -
Payable against purchase of investments - 8 8
- 3,835 3,835
----------------------------------------- 2020 ------------------------------------------

At fair value
At amortised
cost
or loss
----------------------------- (Rupees in '000) -----------------------------
Financial assets
Investments - 595,501 595,501
30,051 595,501 625,552
_______________________________________________Annual Report 2021 | 352

----------------------------------------- 2020 ------------------------------------------
At fair value
At amortised
cost
or loss
----------------------------- (Rupees in '000) -----------------------------
Payable against purchase of investments - 36 36
- 7,624 7,624
price risk and profit rate risk) credit risk and liquidity risk. Further, the overall exposure of the Fund complies with the
18.1 Market risk
of changes in market profit rates. As of June 30, 2021, the Fund is exposed to such risk on its balances held
with banks. The Investment Committee of the Fund reviews the portfolio of the Fund on a regular basis to
ensure that the risk is managed within the acceptable limits.
Presently, the Fund holds balances with banks which expose the Fund to cash flow profit rate risk. In case of
100 basis points increase / decrease in applicable rates on the last repricing date with all other variables held
0.09 million (2020: Rs. 0.18 million)
As at June 30, 2021 the Fund does not hold any fixed rate instrument that may expose the Fund to fair value
profit rate risk.
The composition of the Fund's investment portfolio and KIBOR rates are expected to change over time. Accordingly,
the sensitivity analysis prepared as of June 30, 2021 is not necessarily indicative of the impact on the Fund's net
assets of future movements in profit rates.
Profit rate sensitivity position for on-balance sheet financial instruments is based on the earlier of contractual
repricing or maturity date and for off-balance sheet instruments is based on the settlement date.
_______________________________________________Annual Report 2021 | 353

------------------------------------------------------------ 2021 ------------------------------------------------------------
Not exposed
Effective More than
to yield /
profit rate
risk
one year
----------------------------- (Rupees in '000) -----------------------------
Financial assets
Balances w ith banks 2.24% to 7.20% 9,104 - - 1,161 10,265
Investments - - - 990,186 990,186
9,104 - - 1,014,034 1,023,138
Payable against redemption and conversion of units - - - - -
Payable against purchase of investments - - - 8 8
- - - 3,835 3,835
------------------------------------------------------------ 2020 ------------------------------------------------------------

Not exposed
Effective More than
to yield /
profit rate
risk
one year
----------------------------- (Rupees in '000) -----------------------------
Financial assets
Balances w ith banks 1.50% to 7.50% 18,385 - - 3,742 22,127
Investments - - - 595,501 595,501
18,385 - - 607,167 625,552
Payable against redemption and conversion of units - - - 36 36
- - - 7,624 7,624
(ii) Currency risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate as a result
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.
_______________________________________________Annual Report 2021 | 354

(iii) Price risk
portfolio within the eligible stocks prescribed in the Trust Deed. The NBFC Regulations also limit individual
equity securities to no more than 15% of net assets and issued capital of the investee company and sector
exposure limit to 40% of the net assets.
total comprehensive income of the Fund for the year would increase / decrease by Rs. 9.90 million (2020: Rs.
5.96 million) and the net assets of the Fund would increase / decrease by the same amount as a result of gains
/ losses on equity securities classified as financial assets at fair value through profit or loss.
18.2 Liquidity risk
Liquidity risk is the risk that the Fund may not be able to generate sufficient cash resources to settle its obligation in
full as they fall due or can only do so on terms that are materially disadvantageous to the Fund.
Fund's approach to managing liquidity is to ensure, as far as possible, that the Fund will always have sufficient
liquidity to meet its liabilities when due under both normal and stressed conditions. The Fund's policy is, therefore, to
invest the majority of its assets in investments that are traded in an active market and can be readily disposed and
are considered readily realisable.
year.
-------------------------------------------------------------------------------- 2021 --------------------------------------------------------------------------------

Total
--------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------
Financial assets
Investments - - - - - 990,186 990,186
Advance, deposits and other receivable 16,563 - - - - - 16,563
32,952 - - - - 990,186 1,023,138
Payable against redemption and conversion of units - - - - - - -
Payable against purchase of investments 8 - - - - - 8
3,835 - - - - - 3,835
Net assets / (liabilities) 29,117 - - - - 990,186 1,019,303
-------------------------------------------------------------------------------- 2020 --------------------------------------------------------------------------------

_______________________________________________Annual Report 2021 | 355 month and upto and upto one upto five years with no fixed
Total
Payable against redemption and conversion of units - - - - - - -
Payable against purchase of investments 8 - - - - - 8
3,835 - - - - - 3,835
Net assets / (liabilities) 29,117 - - - - 990,186 1,019,303
-------------------------------------------------------------------------------- 2020 --------------------------------------------------------------------------------

Total
--------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------
Financial assets
Investments - - - - - 595,501 595,501
Receivable against sale of investment 5,113 - - - - - 5,113
Advance, deposits and other receivable 2,633 - - - - - 2,633
30,051 - - - - 595,501 625,552
Payable to Central Depository Company of -
Payable against redemption and conversion of units 36 - - - - - 36
7,624 - - - - - 7,624
Net assets / (liabilities) 22,427 - - - - 595,501 617,928
18.3 Credit risk
2021 2020
Maximum Maximum
Rupees in '000 Rupees in '000

Investments 990,186 - 595,501 -
Dividend receivable 3,639 3,639 178 178
Advances, deposits and other receivable 16,563 16,563 2,633 2,633
1,023,138 32,952 625,552 30,051
investment in equity securities of Rs. 990.186 million (2020: Rs. 595.501 million) is not exposed to credit risk.
There is a possibility of default by participants or failure of the financial market / stock exchanges, the depositories,
the settlements or clearing systems, etc. Settlement risk on equity securities is considered minimal because of
inherent control established in the settlement process. The Fund's policy is to enter into financial contracts in
accordance with internal risk management policies and instruments guidelines approved by the Investment
Committee.
account of its placements in banks and mark-up accrued thereon, cheques in hand, dividend receivable and
receivable against sale of units and against investments. The credit rating profile of balances with banks is as follows:
2021 2020
AAA 16.15% -
AA+ 57.67% 98.80%
A+ 24.48% 0.46%
AA 1.70% 0.74%
100.00% 100.00%
_______________________________________________Annual Report 2021 | 356

counterparties whose aggregate credit exposure is significant in relation to the Fund's total credit exposure. The
Funds portfolio of financial assets is mainly held with credit worthy counterparties thereby mitigating any credit risk.
Financial assets which are tradable in an open market are revalued at the market prices prevailing on the statement
of assets and liabilities date. The estimated fair value of all other financial assets and liabilities is considered not to be
------------------------- 2021 -------------------------

----------------------------- (Rupees in '000) -----------------------------
Shares of listed companies - 'ordinary shares' 990,186 - -
------------------------- 2020 -------------------------

----------------------------- (Rupees in '000) -----------------------------
Shares of listed companies - 'ordinary shares' 595,501 - -
every open end scheme shall maintain fund size (i.e. net assets of the Fund) of Rs. 100 million at all times during the
life of the scheme. The Fund has historically maintained and complied with the requirement of minimum fund size at
all times.
The Fund's objectives when managing unit holders' funds are to safeguard its ability to continue as a going concern
so that it can continue to provide returns to the unit holders and to maintain a strong base of assets to meet
unexpected losses or opportunities.
_______________________________________________Annual Report 2021 | 357

In accordance with the risk management policies as stated in note 18, the Fund endeavours to invest the
subscriptions received in appropriate investment avenues while maintaining sufficient liquidity to meet redemptions,
such liquidity being augmented by disposal of investments or short-term borrowings, where necessary.

------------------------- 2021 -------------------------
Number of Investment Percentage of
Category unit holders amount total
Rupees in '000 %
Associated undertakings 11 1,015,344 100.00
------------------------- 2020 -------------------------

Number of Investment Percentage of
Category unit holders amount total
Rupees in '000 %
Associated undertakings 8 619,015 100.00
---------------------------------- 2021 ---------------------------------- ---------------------------------- 2020 ----------------------------------

Percentage of
Percentage of
commission paid
paid
Spectrum Securities (Private) Limited 8% JS Global Capital Limited 14%

Taurus Securities Limited 7% Ismail Iqbal Securities (Private) Limited 11%
Next Capital Limited 7% Aba Ali Habib Securities (Private) Limited 8%
Top Line Securities (Private) Limited 6% Taurus Securities Limited 8%
Aba Ali Habib Securities (Private) Limited 6% Insight Securities (Private) Limited 7%
Alfalah Securities (Private) Limited 6% Vector Capital Management Limited 6%
AKD Securities Limited 6% Intermarket Securities Limited 5%
Ismail Iqbal Securities (Private) Limited 5% Topline Securities (Private) Limited 5%
Vector Capital Management Limited 5% AKD Securities Limited 5%
Insight Securities (Private) Limited 5% Optimus Capital Management Limited 4%
The Fund manager of the Fund is Mr. Asif Imtiaz. Other funds being managed by the fund manager are as follows:
- Meezan Balanced Fund

- Meezan Asset Allocation Fund
- Meezan Financial Planning Fund of Fund
- Meezan Strategic Allocation Fund
- Meezan Strategic Allocation Fund-II
- Meezan Strategic Allocation Fund-III ;and
- KSE Meezan Index Fund
_______________________________________________Annual Report 2021 | 358

Aug 9, 2021 Sep 14, 2021
_______________________________________________Annual Report 2021 | 359

_______________________________________________Annual Report 2021 | 360

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MEEZAN

ISLAMIC FUND (MIF)

BOARD OF DIRECTORS OF THE MANAGEMENT COMPANY

CFO & COMPANY SECRETARY OF THE MANAGEMENT COMPANY

RISK MANAGEMENT COMMITTEE

BANKERS TO THE FUND

Strategy, Investment Policy and Asset Allocation

Sector Allocation for the year ended FY20 and FY21

Oil & Gas Exploration

Cash and others

Paper & Board

Power Generation &

Return During the Period 35.50% 39.32%

Breakdown of unit holdings by size:

Summary of Actual Proxy Voted By the Fund

Resolutions For Against Abstain

2021 2020 2019

One Year Two Year Three Year

Balances with banks 5 2,061,391 1,755,340

Payable to Al Meezan Investment Management Limited - Management Company 8 92,487 32,677

NET ASSETS 34,274,023 24,072,185

UNIT HOLDERS' FUND (AS PER STATEMENT ATTACHED) 34,274,023 24,072,185

CONTINGENCIES AND COMMITMENTS 12

NUMBER OF UNITS IN ISSUE 540,803,980 514,682,160

NET ASSET VALUE PER UNIT 63.3761 46.7710

For Al Meezan Investment Management Limited

_____________________ _____________________ _____________________

_______________________________________________Annual Report 2021 | 56

Note 2021 2020

Allocation of net income for the year

For Al Meezan Investment Management Limited

_____________________ _____________________ _____________________

_______________________________________________Annual Report 2021 | 57

Net income for the year after taxation 8,512,447 549,840

Other comprehensive income for the year - -

Total comprehensive income for the year 8,512,447 549,840

For Al Meezan Investment Management Limited

_____________________ _____________________ _____________________

_______________________________________________Annual Report 2021 | 58

Issue of 766,372,501 units (2020: 629,460,674 units)

Redemption of 740,250,681 units (2020: 651,892,108 units)

Accumulated loss brought forward

Transfer to over distribution (note 1.6) (709,398) -

Undistributed income / (accumulated loss) carried forward

For Al Meezan Investment Management Limited

_____________________ _____________________ _____________________

_______________________________________________Annual Report 2021 | 59

Net income for the year before taxation 8,512,447 549,840

CASH FLOWS FROM FINANCING ACTIVITIES

Net receipts from issuance of units 44,833,474 31,510,753

Net increase in cash and cash equivalents 306,051 414,366

For Al Meezan Investment Management Limited

_____________________ _____________________ _____________________

_______________________________________________Annual Report 2021 | 60

1 LEGAL STATUS AND NATURE OF BUSINESS

3.1 Statement of compliance

_______________________________________________Annual Report 2021 | 61

3.4 Critical accounting estimates and judgments

3.5 Accounting convention

3.6 Functional and presentation currency

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