CONTENTSjsil.com/downloads/reports/2013/JS_GROWTH_Fund_Q.pdf · We foresee continued positivity in the market owing to strong fundamentals of individual scrips. Fund Performance The

CONTENTS

01

Vision and Mission Statement......................................................................................02

Organization..............................................................................................................03

Directors' Report to the Certificate Holders....................................................................04

Condensed Interim Statement of Assets and Liabilities.....................................................05

Condensed Interim Income Statement...........................................................................06

Condensed Interim Statement of Comprehensive Income................................................07

Condensed Interim Cash Flow Statement......................................................................08

Condensed Interim Statement of Changes in Equity........................................................09

Condensed Interim Distribution Statement.....................................................................10

Notes to the Condensed Interim Financial Statements.....................................................11

JS Growth Fund

JS Growth Fund

02

VISIONTo be recognized as a responsible asset manager respected for continuinglyrealizing goals of its investors.

MISSIONTo build JS Investments into a top ranking Asset Management Company;founded on sound values; powered by refined knowhow; supported bya committed team operating within an accountable framework of social,ethical and corporate responsibility - a strong and reliable institution forits shareholders to own; an efficient service provider and value creatorfor clients; an exciting and fulfilling work place for employees; and aparticipant worth reckoning for competitors.

BROAD POLICY OBJECTIVES

Value creation for clients on a sustainable basisMaintain high standards of ethical behaviors and fiduciary responsibilityManage Investments with Prudence and with the aim of providingconsistent returns better than that of peersTake Products and Services to the People; Create awareness onunderstanding financial goals, risks and rewardsProfessional Excellence - Adapt, Evolve and Continuously ImproveMaintain highly effective controls through strong compliance and riskmanagementA talented, diligent and diverse HR

JS Growth Fund

ORGANIZATION

03

Management Company JS Investments Limited7th Floor, The Forum, G-20Khayaban-e-Jami, Block-9, CliftonKarachi-75600Tel: (92-21) 111-222-626Fax: (92-21) 35361724 E-mail: [email protected]: www.jsil.com

Board of Directors Munawar Alam Siddiqui ChairmanRashid Mansur Chief Executive OfficerSuleman LalaniNazar Mohammad ShaikhLt.General (R) Masood ParwaizMazharul Haq Siddiqui Sadeq Sayeed Resigned

Audit Committee Nazar Mohammad Shaikh Chairman Munawar Alam Siddiqui Member

Lt.General (R) Masood Parwaiz Member

Chief Financial Officer& Company Secretary Muhmmad Khawar Iqbal

Trustee MCB Financial Services Ltd.3rd Floor, Adamjee HouseI.I.Chundrigar Road,Karachi - 74000

Auditors Ernst & Young Ford Rhodes Sidat Hyder & Co.Chartered Accountants

Legal Adviser Bawaney & Partners

Registrar Technology Trade (Private) Limited241-C, Block 2, P.E.C.H.S, KarachiTel: (92-21) 34391316-7Fax: (92-21) 34391318

04

DIRECTORS’ REPORT TO THE CERTIFICATE HOLDERS

The Board of Directors of JS Investments Limited, the Management Company of JS Growth Fund (the Fund), is pleased to presentthe un-audited financial statements for the third quarter ended March 31, 2013.

Market Review

The KSE-30 Index gained a modest 3.23 percent in 3QFY13 compared to 9.3% and 5.6% in the previous two quarters.Accordingly the KMI-30 Index grew by 8.49 percent where as the KSE-100 Index presented an increment of 6.73 percent. TheKSE-30 Index lagged other indices as the banking sector which carries one of the highest weights on the index declined due tonegative investor sentiment.

The quarter saw an inflow of foreign investor's portfolio investments (FIPI) of USD70.2 mn, continuing its positive trend sincethe second half of 2012. Increased momentum in volumes was observed due to companies posting strong corporate resultsspecifically in the electricity, telecommunications and personal goods sectors. The banking sector found itself under scrutiny afterThe State Bank of Pakistan made it mandatory for the banks to pay a 6 percent return on average monthly deposits.

The equity market witnessed heightened volatility due to varying political climate and law and order instability. The market sawa 3.2 percent one day drop upon the Supreme Court's ruling to arrest the Prime Minister. We foresee continued positivity in themarket owing to strong fundamentals of individual scrips.

Fund Performance

The Fund earned a net income of Rs. 995.534 million during the period under review including realized and unrealized gainsof Rs. 621.444 million and 230.050 million respectively. This translates into earning per certificate of Rs.3.48

The net asset value (NAV) per certificate as on March 31, 2013 was Rs. 12.67 compared to beginning ex-distribution net assetvalue of Rs. 10.17 per certificate as on June 30, 2012, showing an increase of 24.58%. The net assets of the Fund were Rs.3,619.23 million as on March 31, 2013 compared to Rs. 3,235.55 million as on June 30, 2012. The Fund outperformed itsbenchmark return by 14.60% during the period ended March 31, 2013.

Fund and Asset Manager Rating

The matter of mutual funds performance ratings continues to be under discussion between Mutual Funds Association of Pakistan,SECP and the country's two rating agencies. Updated Fund rating will be obtained by the Management Company after SECP'sfinal decision on this matter.

JCR-VIS Credit Rating Company Limited has assigned Management Quality Rating of "AM2-"(AM-Two Minus) to JS InvestmentsLimited. The rating denotes high management quality of the Management Company.

Material Information

As explained in note 1.7 of the financial statements, SECP vide its letter SCD/AMCW/JSGF/422/2013 required to convene themeeting of certificate holders of JS Growth Fund. In accordance with the said advice the Management Company has decidedto convene the meeting of certificate holders of JS Growth Fund on April 30, 2013 to decide either to convert the closed endFund into an open end scheme or revoke the Fund.

Acknowledgment

We wish to express our gratitude to the employees of the Management Company and the trustee for the dedication and hardwork and the certificate holders for their confidence in the Management.

JS Growth Fund

Rashid MansurChief Executive Officer

On behalf of the Board

Karachi: April 24, 2013

CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIESAS AT 31 MARCH 2013

05

JS Growth Fund

Note

ASSETS

Investments 4 2,861,947,375 2,351,323,616Bank balances 5 1,112,855,514 844,843,325Dividend receivable 64,982,294 4,414,227Advances, prepayments and other receivables 6 15,493,324 107,162,958Security deposits 2,700,000 2,700,000Total Assets 4,057,978,507 3,310,444,126

LIABILITIESRemuneration payable to the management company 6,217,596 5,887,797Sales Tax payable on Management remuneration 994,815 942,046Remuneration payable to the trustee 260,844 230,179Annual fee payable to the Securities and Exchange Commission of Pakistan 2,449,019 2,711,643Accrued and other liabilities 7 136,961,978 48,504,284Dividend payable 285,755,871 56,870,552Provision for taxation 6,105,662 6,105,662Total Liabilities 438,745,785 121,252,163

Contingency 8

Net Assets 3,619,232,722 3,189,191,963

Certificate holders' Fund

Certificate capitalIssued, subscribed and paid up certificate capital 3,180,044,630 3,180,044,630Repurchase of own certificates (164,524,936) (164,524,936)

3,015,519,694 3,015,519,694ReservesCapital reservesCertificate premium reserve 306,437,500 306,437,500Reserve on amalgamation 200,000,000 200,000,000

Revenue reservesAccumulated loss 87,100,737 (294,058,005)Surplus on revaluation of available for sale investments 10,174,791 7,655,551

603,713,028 220,035,046

TOTAL CERTIFICATE HOLDERS' EQUITY 3,619,232,722 3,235,554,740

NET ASSETS VALUE PER CERTIFICATE 12.67 11.32

The annexed notes from 1 to 13 form an integral part of these condensed interim financial statements.

For JS Investments Limited(Management Company)

ChairmanChief Executive OfficerMunawar Alam SiddiquiRashid Mansur

31 March ,2013

(Un-audited)

30 June 2012

(Audited)................Rupees................

06

CONDENSED INTERIM INCOME STATEMENT (UN-AUDITED)FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2013

JS Growth Fund



Income

Net gain on sale of marketable securities 621,444,236 66,852,315 272,889,995 89,156,147Net Unrealised gain on remeasurement of investments at fair value through profit or loss

(held- for- trading) 230,050,194 124,957,346 59,521,788 486,485,299Net gain on investments in marketable securities 851,494,430 191,809,661 332,411,783 575,641,446

Gain on partial settlement of investments 4.7 7,061,960 - - -Dividend income 175,851,236 201,550,276 84,074,138 101,645,771Return / Markup on bank deposits 46,400,029 27,420,945 14,034,487 9,278,002Other income 1,208,472 - - -

1,082,016,127 420,780,882 430,520,408 686,565,219ExpensesRemuneration to the Management Company 51,559,310 41,035,563 17,792,166 14,023,648Sales tax on Management Company's Remuneration 8,249,490 6,565,688 2,846,746 2,243,782Remuneration to the trustee 2,203,653 1,883,371 749,511 636,728Annual fee to Securities and Exchange Commission of Pakistan 2,449,019 1,949,189 845,094 666,123Securities transactions cost 18,726,022 8,385,718 9,564,784 3,411,613Auditors' remuneration 578,970 575,925 114,659 118,425Legal and professional charges 150,000 207,000 150,000 -Other expenses 2,565,798 3,033,581 952,235 832,545

86,482,262 63,636,035 33,015,195 21,932,864

Net income before taxation 995,533,865 357,144,847 397,505,213 664,632,355

Taxation-prior period - 3,487,966 - -

Net income after taxation for the period 995,533,865 360,632,813 397,505,213 664,632,355

Earnings per certificate -Basic and diluted 10 3.48 1.26 1.39 2.33


NoteMarch 31,

2013March 31,

2012

Nine months endedMarch 31,

2013March 31,

2012

Three months ended

--------Rupees-------- --------Rupees--------

07

CONDENSED INTERIM STATEMENT OF COMPREHENSIVEINCOME (UN-AUDITED)FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2013

JS Growth Fund



March 31,2013

March 31,2012

Nine months endedMarch 31,

2013March 31,

2012

Three months ended

--------Rupees-------- --------Rupees--------

Net income for the period 995,533,865 360,632,813 397,505,213 664,632,355

Other comprehensive income:

Net unrealised gain / (loss) on remeasurement foravailable-for-sale investments 2,519,240 (5,264,700) 3,771,589 7,627,950

Net realised (loss) on available-for-sale investment transferred to Income Statement - (1,018,600) - -

2,519,240 (6,283,300) 3,771,589 7,627,950

Total comprehensive income for the period 998,053,105 354,349,513 401,276,802 672,260,305


08

CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED)FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2013

JS Growth Fund



CASH FLOWS FROM OPERATING ACTIVITIES

Net income for the period 995,533,865 357,144,847

Adjustments for:

Net gain on sale of marketable securities (621,444,236) (66,852,315)Dividend income (175,851,236) (201,550,276)Unrealised (gain) on remeasurement of held for trading investments - net (230,050,194) (124,957,346)

(31,811,801) (36,215,090)

Decrease in current assets - advances, prepayments and other receivables 84,607,692 112,337,054

Increase / (Decrease) in current liabilities

Remuneration payable to the management company 329,799 (206,731)Remuneration payable to the trustee 30,665 4,793Annual fee payable to the Securities and Exchange Commission of Pakistan (262,624) (987,125)Creditors, accrued and other liabilities 46,211,183 20,678,605

99,104,914 95,611,506

Sale of investments 6,075,974,533 3,437,848,278Purchase of investments (5,725,522,680) (3,122,564,859)Dividend received 115,283,169 135,275,556

465,735,022 450,558,975

Net cash generated from operating activities 564,839,936 546,170,481

NET CASH FLOWS FROM FINANCING ACTIVITIESDividend paid (296,827,747) (281,466,299)Net cash used in financing activities (296,827,747) (281,466,299)

Net increase in cash and cash equivalents 268,012,189 264,704,182

Cash and cash equivalents at beginning of the period 844,843,325 82,152,240

Cash and cash equivalents at end of the period 1,112,855,514 346,856,422


March 31,2013

March 31,2012

Nine months ended

--------Rupees--------

09

JS Growth Fund



CONDENSED INTERIM DISTRIBUTION STATEMENT (UN-AUDITED)FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2012

Accumulated (loss) at the beginning of the period (294,058,005) (505,777,200)

Net income for the period 995,533,865 360,632,813

Final Dividend @ Rs.1.15 per certificate (2012: Re. 1.00 per certificate) (328,619,252) (285,755,871)

Interim Dividend @ Re.1.00 per certificate (2012: Nil) (285,755,871) -

Accumulate Gain / (loss) at the end of the period 87,100,737 (430,900,258)

The annexed notes 1 to 13 form an integral part of these condensed interim financial statements.

March 31,2013

March 31,2012

Nine months ended

--------Rupees--------

.....................................................................Rupees.....................................................................

CONDENSED INTERIM STATEMENT OF CHANGESIN EQUITY (UN-AUDITED)FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2013

Balance as at 01 July 2011 3,180,044,630 (164,524,936) 306,437,500 200,000,000 (505,777,200) 660,300 18,589,451 3,034,769,445[Rs 10.62 per certificate]

Net income for the period - - - - 360,632,813 360,632,813 - 360,632,813 Other Comprehensive loss - - - - - - (1,018,600) (1,018,600)

Total Comprehensive income for the period - - - - 360,632,813 360,632,813 (1,018,600) 359,614,213

Unrealised loss on remeasurement of available for sale to fair value (5,264,700) (5,264,700)

Transactions with owners recorded directly in equity

Final dividend @ Re.1 per certificate - - - - (285,755,871) (285,755,871) - (285,755,871)

Balance as at 31 March 2012 3,180,044,630 (164,524,936) 306,437,500 200,000,000 (430,900,258) 75,537,242 12,306,151 3,103,363,087[Rs 10.86 per certificate]

Balance as at 01 July 2012 3,180,044,630 (164,524,936) 306,437,500 200,000,000 (294,058,005) 212,379,495 7,655,551 3,235,554,740[Rs 11.32 per certificate]

Net income for the period - - - - 995,533,865 995,533,865 - 995,533,865

Other Comprehensive income - - - - - 2,519,240 2,519,240

Total comprehensive income for the period - - - - 995,533,865 995,533,865 2,519,240 998,053,105

Transactions with owners recorded directly in equity

Final dividend @ Rs.1.15 per certificate - - - - (328,619,252) (328,619,252) (328,619,252)

Interim dividend @ Re.1.00 per certificate (285,755,871) (285,755,871) (285,755,871)

Balance as at 31 March 2013 3,180,044,630 (164,524,936) 306,437,500 200,000,000 87,100,737 593,538,237 10,174,791 3,619,232,722[Rs 12.67 per certificate]


TotalSurplus / (deficit)

on remeasurementof available-for-sale

investments

Issued,subscribed

and paid-upcertificate capital

Repurchaseof own

certificates

Certificatepremium account

Capitalreserve on

amalgamation

Accumulatedincome / (loss)

Total

Reserves

10

JS Growth Fund



11

NOTES TO THE CONDENSED INTERIM FINANCIALSTATEMENTS (UN-AUDITED)FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2012

1. LEGAL STATUS AND NATURE OF BUSINESS

1.1 JS Growth Fund ("the Fund"), a closed-end scheme, was constituted under Trust Deed entered into between JS Investments Limitedas Management Company, a listed public limited company incorporated under the Companies Ordinance, 1984 and CentralDepository Company of Pakistan Limited (CDC) as a Trustee with the approval of the Securities and Exchange Commission of Pakistan(SECP) through their letter dated April 5, 2006. Thereafter, MCB Financial Services Limited (MCBFSL) was appointed as trustee ofthe Fund with effect from February 2, 2008. The Fund is governed under Non-Banking Finance Companies (Establishment andRegulations) Rules, 2003 (NBFC Rules) and Non-Banking Finance Companies and Notified Entities Regulations, 2008 issued bythe Securities and Exchange Commission of Pakistan (SECP). The Fund has been approved as a notified entity by the Securitiesand Exchange Commission of Pakistan (SECP) on January 22, 2009. The Fund's certificates are listed on all the stock exchangesof Pakistan.

1.2 The major objective of the Fund is to enable certificate holders to participate in a diversified portfolio by prudent investmentmanagement (investment return being of a combination of capital appreciation and income).

1.3 The Fund was formed as a result of the amalgamation of ABAMCO Capital Fund (ACF),ABAMCO Stock Market Fund (ASMF) andABAMCO Growth Fund (AGF) herein after referred to as "the amalgamating funds". The Board of Directors of JS Investments Limitedin their meeting held on March 30, 2005, approved the merger of ABAMCO Capital Fund, ABAMCO Stock Market Fund andABAMCO Growth Fund into a new Fund titled as UTP-Growth Fund (now JS Growth Fund), under a scheme of arrangement foramalgamation ("the scheme") The scheme was also approved by the certificate holders of respective amalgamating funds in theirseparate extraordinary general meetings held on February 2, 2006 and by the Securities and Exchange Commission of Pakistanvide letter dated April 5, 2006. The amalgamation, as per the above referred "scheme", was effective as of December 31, 2005.

1.4 ABAMCO Capital Fund, a closed end scheme was formed as a result of the merger of 1st, 3rd, 8th, 11th, 12th, 15th, 19th and20th ICP Mutual Funds. ABAMCO Stock Market Fund, also a closed end scheme, was formed as a result of the merger of 21st,23rd and 25th ICP Mutual Funds. ABAMCO Growth Fund (a closed end fund) was formerly the 4th ICP Mutual Fund. The managementrights of the above three funds were transferred from Investment Corporation Pakistan to JS Investments Limited under a managementright of transfer agreement executed on October 11, 2002 between JS Investments Limited and the Privatization Commission ofthe Government of Pakistan.

1.5 The registered office of JS Investments Limited is situated at 7th floor, The Forum, G-20 Khayaban- e-Jami, Block-9, Clifton Karachi,Pakistan.

1.6 Title to the assets of the fund are held in the name of MCB Financial Services Limited as a trustee of the Fund.

1.7 "As per regulation 65 of the Regulations, as amended by Securities and Exchange Commission fo Pakistan's (""SECP"") SRO1492(1)/2012 dated December 26, 2012, the Management Company shall, upon expiry of five years from 21st November 2007or the date of launch of the fund whichever is later, hold within one month of such period a meeting of the Certificate Holders toseek approval of the certificate holders to convert into an open end scheme or revoke the closed end scheme by passing a resolutionthrough simple majority. During the period, the SECP vide S.R.O. 1399(l)/2012 extended the timeline for convening meeting ofthe certificate holders under the said regulation by forty one days i.e. latest by 31 January 2013.

In compliance with the above said regulation, the Management Company has convened a meeting of certificate holders of the Fundon 30 January 2013 and in such meeting, both the resolutions have not been passed by the simple majority of total outstandingcertificates. 47.2 % of the total outstanding certificate holders voted in favor of conversion of the Fund whereas 6.97% favored therevocation. The outcome of the meeting has been communicated to the stock exchanges and the Securities and Exchange Commissionof Pakistan.

Subsequently, in compliance of SECP's advice vide its letter SCD/AMCW/JSGF/422/2013 the Management Company has decidedto reconvene the meeting of certificate holders of JS Growth Fund on April 30, 2013 to decide either to convert the closed endFund into an open end scheme or to revoke the Fund.

2. BASIS OF PREPARATION

2.1 The condensed interim financial statements have prepared in accordance internation accounting standards -34 ''Interim FinancialReporting'' as applicable in Pakistan.

2.2 These condensed interim financial statements do not include all the information and disclosures required in the annual financialstatements and should be read in conjunction with the financial statement of the Funds for the year ended 30 June 2012.

3. ACCOUNTING POLICIES

The accounting policies adopted in the preparation of these condensed interim financial statements are consistent with those ofthe previous financial year except as follows:

New and amended standards and interpretations

The Fund has adopted the following amendedments to IFRS which became effective in the current period.

- IAS 1 Presentation of Financial Statements – Presentation of items of other comprehensive income (Amendment)

- IAS 12 Income Taxes - Recovery of Underlying Assets (Amendment)

The adoption of the above amendments did not have any effect on the condensed interim financial statements.

JS Growth Fund

4 INVESTMENTS

Investments at fair value through profit or loss-held-for-trading

Quoted ordinary shares 4.1 2,785,017,363 2,269,958,816Quoted preference shares 4.2 - -Unquoted debt securities 4.3 -

Available for saleQuoted ordinary shares 4.4 76,930,012 81,364,800Quoted debt securities 4.5 - -Unquoted debt securities 4.6 - -

2,861,947,375 2,351,323,616

12

JS Growth Fund

Note

March 31,2013

(Un-audited)

June 30, 2012

(Audited)................Rupees................

ChemicalsFauji Fertilizer Company Limited 984,050 1,973,300 - 2,199,050 758,300 83,337,170 2.30 0.01Fauji Fertilizer Bin Qasim Limited - 2,834,000 - 2,834,000 - - - -

83,337,170 2.30 Oil and GasNational Refinery Limited 141,194 - - 141,194 - - - -Oil and Gas Development Company Limited 1,082,818 2,743,500 - 3,826,318 - - - -Pakistan Petroleum Limited 1,541,100 2,003,600 234,975 1,834,875 1,944,800 340,748,408 9.41 0.01Pakistan Oilfields Limited 712,000 204,000 - 866,000 50,000 22,681,500 0.63 0.00Pakistan State Oil Company Limited 585,000 655,000 461,800 246,800 1,455,000 295,554,150 8.17 0.08Attock Refinery Limited (related party) - 810,900 - 810,900 - - -

658,984,058 18.21 Construction and Materials (Cement)Attock Cement Pakistan Limited 313,207 - - 313,207 - - - -D.G.Khan Cement Limited - 12,997,000 - 11,086,000 1,911,000 132,374,970 3.66 0.04Lucky Cement Limited - 3,039,400 - 2,453,700 585,700 98,157,463 2.71 0.02Fauji Cement Company Limited - 19,950,000 - 10,150,000 9,800,000 82,418,000 2.28 0.07Kohat Cement Company Limited - 215,000 - - 215,000 16,763,550 0.46 0.02

329,713,983 9.11 General IndustrialsPackages Limited 773,000 982,000 - 871,500 883,500 170,285,790 4.71 0.10

Industrial TransportationPakistan International ContainerTerminal Limited 1,411,904 - - 1,411,904 - - - -

Food ProducersMitchells Fruit Farms - 42,800 9,775 5,300 47,275 15,317,100 0.42 0.09Rafhan Maize Products Company Limited 43,065 5,454 - 4,740 43,779 165,922,410 4.58 0.05Shahtaj Sugar Mills Limited 555,467 323,475 - 3,000 875,942 58,688,114 1.62 0.73

239,927,624 6.62 Personal GoodsNishat Mills Limited 2,303,623 5,390,000 - 5,019,623 2,674,000 225,391,460 6.23 0.08Nishat Chunian Limited - 7,085,000 - 2,518,000 4,567,000 220,357,750 6.09 0.25

445,749,210 12.32 MediaHum Network Limited (related party) 1,060,900 - - - 1,060,900 30,447,830 0.84 0.21Fixed Line TelecommunicationPakistan Telecommunication Company Limited 4,650,000 17,576,500 - 22,226,500 - - - -

4.1 Quoted ordinary shares (Ordinary shares have a face value of Rs.10/- each unless stated otherwise).

Holding atthe

beginningof the period

Acquiredduring

the period

Bonus / rights received

during the period

Disposedduring the

period

Holding at the

end of the period

Market /carrying

value (Rupees)

% ofown

net assets

% ofinvesteecapital

Number of shares

Sectors / companies

13

JS Growth Fund

ElectricityNishat Chunian Power Limited 12,094,212 1,500,000 - 13,594,212 - - - -Nishat Power Limited 9,380,619 8,675,500 - 2,762,000 15,294,119 384,494,152 10.62 0.43

384,494,152 10.62 BanksBank Alfalah Limited - 16,152,000 - 400,000 15,752,000 237,855,200 6.57 0.12Bank Al Habib Limited - 4,154,000 - 969,000 3,185,000 83,829,200 3.13 0.03Bank Islami Pakistan Limited (related party) 6,992,809 - - 851,500 6,141,309 38,813,073 1.07 0.12MCB Bank Limited - 2,009,600 - 2,009,600 - - - -National Bank of Pakistan 3,636,944 4,623,556 - 8,260,500 - - - -United Bank Limited - 4,044,500 - 4,044,500 - - - -Faysal Bank Limited - 9,029,000 294,437 - 9,323,437 81,580,074 2.25 0.13

442,077,547 13.02 Non Life InsuranceIGI Insurance Limited 496,685 75,000 - 571,685 - - - -

Total market value of held-for- trading quoted ordinary shares as at 31 March 2013 2,785,017,363 71.65

Cost of held-for- trading quoted ordinary shares as at 31 March 2013 1,909,679,890

4.2 Quoted preference shares- at fair value through profit or loss (held-for-trading) (Face value of Rs.10/- each unless stated otherwise).

Holding atthe


Acquiredduring

the period


during the period

Disposedduring the

period

Holding at the

end of the period

Market /carrying

value (Rupees)

% ofown

net assets

% ofinvesteecapital

Number of shares

Sectors / companies

Holding atthe


Acquiredduring

the period


during the period

Disposedduring the

period

Holding at the

end of the period

Market /carrying

value (Rupees)

% ofown

net assets

% ofgrossassets

Number of shares

Sectors / companies

Personal GoodsAzgard Nine Limited (related party) 4.7.1 & 4.7.2 5,030,000 - - 5,030,000 - 42,649,553 1.18 1.05Less: Provision against preference shares (42,649,553)

-

Cost of held-for-trading investments as at 31 March 2013 47,869,650

4.3 Unquoted debt securities- at fair value through profit or loss ( held-for-trading )

Note

Holding atthe


Acquiredduring

the period

Disposedduring the

period

Holding at the

end of the period

Market /carrying

value (Rupees)

% ofown

net assets

% ofissuedcapital

Number of shares

Sectors / companies

Personal Goods

Azgard Nine Limited (related party) 4.7.2

Convertible PPTFC (22-10-2012) - 6,420 - 6,420 - - -

Cost of held for trading (Unquoted debt securities) as at 31 March 2013 64,200,000

Note

Personal GoodsAzgard Nine Limited (related party) 4.7 10,000 - - 10,000 13,681,024 0.38 0.34 Less: Provision held (13,681,024)

- Cost of available-for-investments (quoted debt securities) as at 31 March 2013 7,357,963

4.6 Unquoted debt securities-(Available-for-sale)

Azgard Nine Limited PPTFC related party) 4.7.3 - 2,150 - 2,150 - - -

Cost of available-for-investments (Unquoted debt securities) as at 31 March 2013 10,750,000

Oil and GasPakistan State Oil Company Limited 345,000 - - - 345,000 70,079,850 1.94 0.02

Cost of available-for-sale investments as at 31 March 2013 40,189,469

ChemicalsAgritech Limited 4.7 - 605,138 - - 605,138 6,850,162 0.19 0.02

Cost of available-for-sale investments as at 31 March 2013 21,179,813

Total Market value of available-for-sale investments 76,930,012

Total Cost of available-for-sale invesments 61,369,282

4.5 Quoted debt securities- (Availabe-for-sale)(Term Finance Certificates have a face value of Rs 5,000/- each)

JS Growth Fund

14

Holding atthe


Acquiredduring

the period


during the period

Disposedduring the

period

Holding at the

end of the period

Market /carrying

value (Rupees)

% ofown

net assets

% ofinvesteecapital

Number of shares

Sectors / companies

4.4 Quoted ordinary shares- (Available-for-sale) (Ordinary shares have a face value of Rs.10/- each unless stated otherwise.)

Holding atthe


Acquiredduring

the period

Disposedduring the

period

Holding at the

end of the period

Market /carrying

value (Rupees)

% ofown

net assets

% ofgrossassets

Number of shares

Sectors / companies Note

4.7 During the period, the Fund alongwith other lenders, entered into a restructuring agreement in respect of the outstanding liabilities of Azgard Nine Limited (ANL). In terms of the saidrestructuring, the Fund has acquired 605,138 ordinary shares of Agritech Limited which were previously owned by ANL, in order to partially settle the liabilities of ANL.

The financial impact of the above restructuring on the Fund has been summarised below ;Exposurebefore

restructuring

Exposureafter

restructuringNote------Rupees-------

Preference shares Azgard Nine Limited 4.2 & 4.7.1 42,649,553 -Un-listed TFCs' 4.5 34,860,837 13,681,024 Zero Coupon PPTFCs' against preference shares of Azgard Nine Limited 4.3 & 4.7.2 - 42,649,553 Zero Coupon PPTFCs' against markup receivable on unlisted TFCs' 4.6 & 4.7.3 - 906,103

Provision for impairment held (77,510,390) (57,236,680)

Net book value of TFC's - -

Fair value of ordinary shares ofAgritech limited received as per re structuring agreement 4.4 7,061,960

Gain on partial settlement of investments 7,061,960

15

JS Growth Fund

The above ordinary shares of Agritech Limited are subject to sale lock-in-period of 5 years in terms of the SharePurchase Agreement (SPA) between the ANL and various lenders including the Fund. However, as per the SPA,the sale restricition is not applicable to transactions between the lenders of ANL.

4.7.1 These preference shares were to be redeemed in two equal tranches at the end of year 2009 and 2010. However,Azgard Nine Limited was unable to make redemption as per commitment, therefore the whole amount has beenprovided.

4.7.2 During the year, preference shares of Azgard Nine limited were settled by the company and the Fund received6420 Azgard Nine Limited convertible PPTFCs in exchange for listed preference shares of Azgard Nine Limited.Since these PPTFCs were received against already defaulted security, therefore as a matter of prudence managementhas maintained the provision against the said PPTFCs. These PPTFCS' are valued at zero but the cost is carriedat Rs. 64,200,000.

4.7.3 The Fund has received 2,150 Zero Coupon PPTFC against interest receivable on unlisted TFCs. Since thesePPTFCs are received against already defaulted securities and have non-performing status in MUFAP, therefore,as a matter of prudence, management has maintained the provision against the said PPTFCs. These PPTFCsare valued at zero but cost is carried at Rs.10,750,000.

31 March2013

(Un-audited)

30 June 2012

(Audited)................Rupees................

5. BANK BALANCES - In saving accounts 1,109,862,212 841,849,640- In current accounts 2,993,302 2,993,685

1,112,855,514 844,843,3256 ADVANCES, PREPAYMENTS AND

OTHER RECEIVABLES

Receivable against sale of marketable securities - 93,291,334Advance tax 7,206,598 7,206,598Tax refundable 5,796,394 5,796,394Mark-up receivable on:- Bank deposits 2,287,883 868,632- Term finance certificates (available-for-sale) 906,103 906,103- Provision held against term finance certificates (906,103) (906,103)Prepaid expenses 202,449 -

15,493,324 107,162,958

7. ACCRUED AND OTHER LIABILITIES

Payable against purchase of marketable securities / brokers' commission 46,847,213 -Settlement charges payable to Central Depository Company of Pakistan Limited 46,367 60,705

Accrued expenses 1,406,341 2,080,802Unclaimed dividend 88,662,057 46,362,777

136,961,978 48,504,284

16

JS Growth Fund

8. CONTINGENCY

Through the Finance Act, 2008 an amendment was made in section 2(f) of the Workers' Welfare FundOrdinance, 1971 (the WWF Ordinance) whereby the definition of 'Industrial Establishment' has been madeapplicable to any establishment to which West Pakistan Shops and Establishment Ordinance, 1969 applies.As a result of this amendment it appears that WWF Ordinance has become applicable to all CollectiveInvestment Schemes (CISs) whose income exceeds Rs. 0.5 million in a tax year. A petition has been filedwith the Honourable High Court of Sindh by some of the Collective Investment Schemes through theirTrustees on the ground that the CIS (mutual funds) are not establishments and as a result not liable to paycontribution to WWF.

Subsequently, the Ministry of Labour and Manpower (the Ministry) vide its letter dated 15 July 2010 clarifiedthat “Mutual Fund(s) is a product which is being managed / sold by the Asset Management Companieswhich are liable to contribute towards Workers Welfare Fund under Section-4 of WWF Ordinance 1971.However, the income on Mutual Fund(s), the product being sold, is exempted under the law ibid”.

Further, the Secretary (Income Tax Policy) Federal Board of Revenue (FBR) issued a letter dated 6 October2010 to the Members (Domestic Operation) North and South FBR. In the letter reference was made tothe clarification issued by the Ministry of Labour and Manpower stating that mutual funds are a productand their income are exempted under the law ibid. The Secretary (Income Tax Policy) Federal Board ofRevenue directed that the Ministry’s letter may be circulated amongst field formations for necessary action.Following the issuance of FBR Letter, show cause notice which had been issued by taxation office to certainmutual funds for payment of levy under WWF was withdrawn. However, the Secretary (Income Tax Policy)Federal Board of Revenue vide letter 4 January 2011 has cancelled ab-initio clarificatory letter dated 6October 2010 on applicability of WWF on mutual funds and issued show cause notices to certain mutualfunds for collecting WWF. In respect of such show cause notices, certain mutual funds have been grantedstay by Honorable High Court of Sindh on the basis of the pending constitutional petition in the said courtas referred above.

During 2011, the Honourable Lahore High Court in a Constitutional Petition relating to the amendmentsbrought in WWF Ordinance through the Finance Act 2006, and the Finance Act, 2008, has declared thesaid amendments as unlawful and unconstitutional. Further, during the preceding period, based on suchdecision of Honourable Lahore High Court, the Commissioner of Inland Revenue (Appeals - II) havedeclared the WWF demand raised by tax authorities against certain mutual funds managed by theManagement Company as illegal and without jurisdiction. The Management Company believes that thedecision of the Honourable Lahore High Court, will lend further support to the Constitutional Petition whichis pending in the Honourable High Court of Sindh. Further, based on the opinion from legal counsel ofMutual Funds Association of Pakistan (MUFAP), there are good chances for the Constitutional Petition tobe decided in favour of the mutual funds and accordingly mutual funds need not to make a provisionregarding WWF in their financial statements.

In view of the aforementioned developments, the Management Company now believes that there is nocompelling reason to maintain provision on account of WWF contribution in the financial statements.Further, the Management Company also expects that the constitutional petition pending in the HonourableHigh Court of Sindh on the subject as referred above will be decided in favour of the mutual funds. Theaggregate unrecognised amount of WWF as at 31 March 2013 amounted to Rs. 42,959,080 ( 30 June2012 : Rs 23,048,403).

9. REPURCHASE OF OWN CERTIFICATES

The Board of Directors in their meetings dated 07 July 2009 & 6 December 2010 approved the repurchaseprogram for the repurchase of 5.5 million (1st phase) & 57.5 million (2nd phase) certificates of the fundunder the guidelines issued by the Securities and Exchange Commission of Pakistan vide its circular no.14of 2009 dated 04 May 2009. Accordingly 32,248,592 certificates were purchased from the secondarymarket (Karachi Stock Exchange) at a repurchase price ranging between Rs 4.1 to Rs 5.29 per certificatethrough a purchase agent approved for the purpose.

17

JS Growth Fund

JS Investments Limited 58,142,464 20.35 36,086,812 12.63Abamco Limited Staff Provident Fund 279,624 0.10 179,624 0.06Jahangir Siddiqui & Sons Limite 25,257,805 8.84 25,257,805 8.84

Mahvash & Jahangir Siddiqui Foundation 5,000,000 1.75 5,000,000 1.75JS Fund of Funds 1,060,736 0.37 12,301,736 4.31EFU Life Assurance Limited 8,503,285 2.98 103,285 0.04Key Management Personnel 2,941 0.00 2,941 0.00Jahangir Siddiqui Securities Services Limited 3,250,000 1.14 2,700,000 0.95Trustee Azgrad Nine Limited Provident Fund 831,165 0.29 - -Trustee JSCL Staff Provident Fund 5,000 0.00 - -

102,333,020 35.81 81,632,203 28.58

31 March2013

(Un-audited)

30 June 2012

(Audited)................Rupees................

10. INCOME PER CERTIFICATE

Net income for the period 995,533,865 360,632,813 Number Number

Weighted average certificates outstanding during the period 285,755,871 285,755,871

Earning per certificate - basic and diluted 3.48 1.26

11. TRANSACTIONS WITH CONNECTED PERSONS / RELATED PARTIES.

Related parties / connected persons include JS Investments Limited being the Management Company, MCBFinancial Services Limited being the Trustee, JS Bank Limited being the holding company of the ManagementCompany, associates of the Management Company and its holding company, other Funds being managed bythe Management Company and Key Management Personnel.

11.1 Detail of balances of certificates held by related parties / connected persons are as follows:

Nine months endedCertificateNumber

Holding(%)

Three months endedCertificateNumber

Holding(%)

31 March2013

(Un-audited)

30 June 2012

(Audited)................Rupees................

11.2 Transactions with related parties during the period ended:

JS Investments Limited Remuneration for the period 51,559,310 41,035,563Sales Tax on Management Company’s remuneration 8,249,490 6,565,688Dividend paid 55,564,509 36,086,812Other cost incurred 815,777 31,249

MCB Financial Services LimitedRemuneration for the period 2,203,653 1,883,371

JS Global Capital Limited Brokerage commission ( see note 11.5 ) 1,826,922 1,033,650

JS Bank LimitedInterest income 41,806,764 15,152,843Bank charges 2,938 8,004

Abamco Limited Staff Provident Fund Dividend paid 206,568 179,614

Jahangir Siddiqui & Sons LimitedDividend paid 29,046,476 25,257,805

Mahvash & Jahangir Siddiqui FoundationDividend paid 5,750,000 5,000,000

JS Fund of FundsDividend paid 1,219,846 12,301,736

EFU Life Assurance LimitedDividend paid 9,778,778 103,285

Allianz EFU Health Insurance LimitedDividend paid 1,150,000 -

Jahangir Siddiqui Securities Services LimitedDividend paid 3,105,000 2,700,000

Hum Network LimitedDividend income 1,060,900 1,060,900 Azgar Nine LimitedIncome on TFC 972 -Gain on partial settlement of investments 7,061,960 -

Attock Refinery LimitedDividend income 1,317,750 -

Key Management PesonnelDividend Paid 2,941 -

11.3 Balances with related parties / connected persons during the period / year ended:

JS Investments Limited Remuneration payable 6,217,596 5,887,797Sales Tax payable on Management Company’s remuneration 994,815 942,046Other cost payable 13,000 1,950Dividend payable 58,142,464 -

Abamco Limited Staff Provident Fund Dividend payable 279,624 -

Jahangir Siddiqui & Sons LimitedDividend payable 25,257,805 -

Mahvash & Jahangir Siddiqui FoundationDividend payable 5,000,000 -

JS Fund of FundsDividend payable 1,060,736 -

18

JS Growth Fund

31 March2013

(Un-audited)

30 June 2012

(Audited)................Rupees................

31 March2013

(Un-audited)

30 June 2012

(Audited)................Rupees................



19

JS Growth Fund

EFU Life Assurance LimitedDividend payable 8,503,285 -

Key Management PersonnelDividend payable 2,941 -

Jahangir Siddiqui Securities Services LimitedDividend payable 3,250,000 -

JS Bank LimitedBank balance 1,050,394,181 623,114,315Profit Receivable 2,247,152 868,542

MCB Financial Services Limited Remuneration payable 260,844 230,179

JS Global Capital LimitedBrokerage commission payable 333,703 -

Attock Refinery LimitedDividend Receivable 1,317,750 -

11.4 The transactions with related parties / connected persons are in the normal course of business at contractedrates and terms determined in accordance with market rates.

11.5 The amount disclosed represents the amount of brokerage expense incurred / payable to a related party andnot the purchase or sale value of securities transacted through them. The purchase or sale value have not beentreated as transactions with related party as ultimate counter-parties are not related.

12 GENERAL

12.1 Figures have been rounded off to the nearest rupee.

13 DATE OF AUTHORISATION FOR ISSUE

These condensed interim financial statements were authorised for issue by the Board of Directors of theManagement Company on April 24, 2013.

31 March2013

(Un-audited)

30 June 2012

(Audited)................Rupees................

Documents

CONTENTSjsil.com/downloads/reports/2013/JS_GROWTH_Fund_Q.pdf · We foresee continued positivity in the market owing to strong fundamentals of individual scrips. Fund Performance The