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Karachi: This is with reference to our letter number Fin-11-12/AMC/Oct-58, Fin-11-12/AMC/Oct-54, Fin-11-12/AMC/Oct-55 and Fin-11-12/AMC/Oct-58 dated October 31, 2011 for submission of Annual Financial Statements of Pakistan Stock Market Fund, AH Dow Jones safe Pakistan Titans 15 Index Fund, Pakistan Income Fund and Pakistan International Element Islamic Asset Allocation Fund respectively for the year ended June 30, 2011. Due to certain errors in the printed financial statements the relevant sections of the annual reports where the amendments were material have been annexed for onward dissemination to the members of the exchange.
Please note that the amended copy of aforementioned financials have been uploaded on the website of the Company.
PAKISTAN INCOME FUND
Independent Auditors’ Report to the Unit Holders of the Fund
The Management responsibility paragraph of the audit report on page no 11 replaced with the following paragraph
“Management`s responsibility for the financial statements
Management Company of the Fund is responsible for the preparation and fair presentation of these financial statements in accordance with the requirements of the approved accounting standards as applicable In Pakistan and/or such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement whether due to fraud or error.”
Following paragraph be added at the end of the audit report in other matters on page no 11.
“Other matters
The financial statements of the Fund for the year ended 30 June 2010 were audited by another firm of Chartered Accountants who vide their report dated 03 August 2010 Issued a qualified report thereon in respect of non provision of Workers’ Welfare Fund in the financial statements.”
Review Report to the Members on Statement of Compliance with the best practices of Code of Corporate Governance
Review report to the Members on Statement of Compliance with the best practices of Code of Corporate Governance inserted in annual report 2011 on page no 10 is replaced with the following report:
We have reviewed the Statement of Compliance with the best practices contained in the Code of Corporate Governance prepared by the Board of Directors of Arif Habib Investments Limited, “the Management Company” of the Fund to comply with the Listing Regulations of Karachi Stock Exchange where the Fund is listed.
“The responsibility for compliance with the Code of Corporate Governance is that of the Board of Directors of the Management Company of the Fund. Our responsibility is to review, to the extent where such compliance can be objectively verified, whether the Statement of Compliance reflects the status of the Fund’s compliance with the provisions of the Code of Corporate
Governance and report U’ it does not A review is limited primarily to inquiries of the Management Company’s personnel and review of various documents prepared by the Management Company to comply with the Code.
As part of our audit of financial statements we are required to obtain an understanding of the accounting and internal control systems sufficient to plan the audit and develop an effective audit approach. We have not carried out any special review of the internal control system to enable us to express an opinion as to whether the Board’s statement on internal control covers all the controls and the effectiveness of such internal controls.
Further, sub-regulation (xiii-a) of Listing Regulations 35 notified by the Karachi Stock Exchange (Guarantee) Limited requires the Management Company to place before the Board of Directors for their consideration and approval related party transactions distinguishing between transactions carried out on terms equivalent to those that prevail in arm`s length transactions and transactions which are not executed at arm’s length price recording proper Just justification for using such alternate pricing mechanism. Further all such transactions are also required to be separately placed before the audit committee. We are only required and have ensured compliance of requirement to the extent of approval of related party transactions by the Board of Directors and placement of such transactions before the audit committee. We have not carried out any procedures to determine whether the related party transactions were under taken at arm’s length price or not.
Based on our review, nothing has come to our attention which causes us to believe that the Statement of Compliance does not appropriately reflect the Fund’s compliance, in all material respects, with the best practices contained in tin Code of Corporate Governance for the year ended 30 June 2011.
Remuneration to Trustee of the Fund
With respect to trustee remuneration tariff structure as disclosed in note 9 to the financial statements on page no 32, following trustee remuneration tariff structure be replaced:
Amount of Funds Under Tariff per annum
Management (Average NAV)
| Up to Rs. 1 billion | Rs. 0.6 million or 0.17% p.a. of NAV whichever is higher |
| Rs. 1 billion to Rs 5 billion | Rs, 1.7 million plus 0.085% p.a. of NAV exceeding Rs. 1 billion |
| Over Rs. 5 billion | Rs. 5.1 million plus 0.07%p.a. of NAV exceeding Rs. 5 billion |
PAKISTAN STOCK MARKET FUND
Independent Auditors’ Report to the Unit Holders of the Fund
The Management responsibility paragraph of the printed report on page 10 replaced with the following paragraph
Management`s responsibility for the financial statements
Management Company of the Fund is responsible for the preparation and/air presentation of these financial statements in accordance with the requirements of the approved accounting standards as applicable in Pakistan and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.”
Following paragraph be added at the end of the report in other matters.
Other matters
The financial statements of the Fund/or the year ended 30 June 2010 were audited by another firm of Chartered Accountants who vide their report dated 03 August 2010 issued a qualified report thereon in respect of non provision of Workers’ Welfare Fund in the financial statements.”
Remuneration to Trustee of the Fund
With respect to trustee remuneration tariff structure as disclosed in note 9 on page number 34 replaced to the financial statements, following trustee remuneration tariff structure be replaced:
Amount of Funds Under Tariff per annum
Management (Average NAV)
| Up to Rs. 1,000 million | Rs. 0.7 million or 0.20%p.a. of NA V whichever is higher On an amount exceeding |
| Rs. 1,000 million | Rs. 2.0 million plus 010% p.a. of NA V exceeding Rs. 1,000 million |
AH DOW JONES SAFE PAKISTAN TITANS 15 INDEX FUND
Independent Auditors’ Report to the Unit Holders of the Fund
Name of Moneeza Usman Butt is replaced with the name of Mr. Amyn Pirani at the end of the report on page number 10 under name of KPMG Taseer Hadi and Co. Chartered Accountants.
Please note that the amended copy of aforementioned financials have been uploaded on the website of the Company.
PAKISTAN INTERNATIONAL ELEMENT ISLAMIC ASSET ALLOCATION FUND
(FORMERLY PAKISTAN INTERNATIONAL ELEMENT ISLAMIC FUND)
Independent Auditors’ Report to the Unit Holders of Fund
Name of Mr. Amyn Pirani is added at the end of the report on page number 12 under name of KPMO Taseer Hadi and Co. Chartered Accountants.
For more information, contact:
Arif Habib Investment Limited
8th Floor, Techno City Corporate Tower,
Hasrat Mohani Road,
Karachi.
UAN: (+92-21) 11-11-622-24
Fax: (+92-21) 32276898
Email: info@mcbah.com
Web: www.mchab.com