DISCOVERING

NEW
OPPORTUNITIES
Quarterly Report
(AM1 rating by JCR-VIS) December 31, 2019
Al Meezan Investment Management Ltd.
A subsidiary of Meezan Bank

Find your solutions with faith at 0800-HALAL (42525)

 MOHATTA PALACE
(KARACHI)

WHO WE ARE
We began our journey in 1995. The objective of the journey was simple, to bring Shariah compliant
investment options to the people of Pakistan. In 24 years since then, Al Meezan Investment
Management Limited, due to the trust our customers hold in us, has now become the Largest
Shariah compliant Asset Manager in Pakistan. With an innate culture of innovation and the purpose
of making Shariah compliant investing every Pakistani’s first investment avenue of choice, Al Meezan
has achieved assets under management base of over Rs. 102 Billion (as on September 30, 2019).

As Pakistan’s only full-fledged Shariah compliant Asset Management Company with the sole
mandate to provide Shariah compliant investment solutions to our valued clients, we have enabled
our customers towards achieving their financial objectives.

Al Meezan offers a full breadth of Shariah compliant investment solutions ranging from equity,
sector, balanced, asset allocation, fixed income, money market, capital preservation, fund of funds,
commodity and voluntary pension schemes. Depending on each investor’s need, we provide expert
guidance enabling them to reach their financial goals.
THE CLOCK TOWER
(SIALKOT)
OUR CORE VALUES
Our Core Values are the 5 pillars of our foundation. They reflect and reinforce our character
and standing as an organization. These values depict the paradigm of our internal and
external expectations: Our dealings with members of the organization, our customers, the
shareholders and the communities we serve. Our corporate culture is based on these
values and serves as a beacon of guidance for all our employees.
Our values are not about what we do or how we do it infact they are about who we are and
why we exist. These values, which fuel our drive to achieve newer milestones at every step
of our journey to success are:

SHARIAH ETHICAL
COMPLIANCE STANDARDS
We ensure that all business operations We practice high ethical standards at
and activities are Shariah compliant. As a work and in our services. Maintaining high
Shariah compliant entity we are also ethical standards in the workplace
accountable for ensuring that rulings and translates in prioritizing the interest of the
decisions made by the regulators, client, acting with integrity, competence
Shariah Board and Shariah Advisors are and diligence, and respecting our
complied with across the organization. dealings with the public, clients,
prospective clients and colleagues.

PROFESSIONAL SERVICE
EXCELLENCE EXCELLENCE
Professional excellence is about achieving Service excellence is an attitude
excellence as an employee. It is at the engrained in every department and
core of being a “professional.” Ensuring employee. From support staff to the CEO,
our approach to work and the people we we simply go beyond delivering products
work with – supervisors, colleagues and helping customers achieve their
and/or customers – is in a professional financial objectives. It is essential that we
and respectful manner. provide a unique customer experience by
proactively anticipating and exceeding
SOCIAL customers’ needs every time. Excellence
is a consistent, premium service at every
RESPONSIBILITY point of contact which is set by our
We work in an ethical framework, which service-oriented tone that drives our
suggests that as an entity we have an company’s strategy at every level.
obligation to act for the benefit of our
society at large. We want to contribute
towards sustainable development not
only through our products but also
through the way we conduct business.
VISION
To make Shariah compliant investing a
first choice for investors.

BADSHAHI MOSQUE
(LAHORE)
MISSION
To establish Al Meezan as a leading and trusted
brand for savings and investments by offering
innovative Shariah compliant investment solutions
through ethical conduct, value added services and
optimal returns, while protecting the interest of all
stakeholders.
 D IRECTORS ’ R EPORT –
F UNDS U NDER M ANAGEMENT C OMPANY
The Board of Directors of Al Meezan Investment Management Limited is pleased to present the unaudited
financial statements of the following open end funds and a voluntary pension scheme for the period ended
December 31, 2019.
Equity Funds
· Meezan Islamic Fund
· Al Meezan Mutual Fund
· KSE-Meezan Index Fund
· Meezan Dedicated Equity Fund
Sector Specific Fund
· Meezan Energy Fund
Income Funds
· Meezan Islamic Income Fund
· Meezan Sovereign Fund
Money Market Fund
· Meezan Cash Fund
 Meezan Rozana Amdani Fund
Balanced Fund
· Meezan Balanced Fund
Funds of Funds
· Meezan Financial Planning Fund of Fund
· Meezan Strategic Allocation Fund
· Meezan Strategic Allocation Fund-II
· Meezan Strategic Allocation Fund-III
Commodity Fund
· Meezan Gold Fund
Asset Allocation Fund
· Meezan Asset Allocation Fund (MAAF)
Pension Fund
· Meezan Tahaffuz Pension Fund
Economic Review
The first half of fiscal year FY20 marked significant improvement on macroeconomic front on local and
especially on foreign front. Finalization of IMF program and macro-economic measures taken by the
Government helped to stabilize economy and put country on growth path.

The year began with Government’s successful negotiation of USD 6 billion IMF package and the
implementation of macro-economic stabilization measures that came with it. Pakistan’s entry into an IMF
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program also paved way for further inflows from World Bank (WB), Asian Development Bank (ADB) and
other lenders. The country received second tranche of payment from IMF worth USD 0.45 billion in
December 2019 taking total disbursement to USD 1.44 billion. Further, Government of Pakistan also
reached an agreement with ADB for a loan of USD 1.3 billion for budgetary support and power sector
reforms; with disbursement of the said amount being received in December 2019.

On the monetary front, after eight consecutive rate hikes since January 2018, SBP decided to maintain the
policy rate at 13.25% in September and kept inflation forecast at 11-12% for FY20. CPI inflation for 1HFY20
remained on a higher side and was recorded at 11.11% primarily due to seasonal effect of food prices which
are expected to be normalized going forward.

Development in the fiscal sector has gained traction on account of broad based taxation reforms and strict
control over non development expenditures. In 1HFY20 FBR tax collection increased by 16.3% YoY to PKR
2,083 billion. Despite the improvement in collection the six month target fell short by PKR 114 billion due
to significant decline in imports. On expenditure side, public sector development programs (PSDP)
increased to PKR 257 billion during July - Oct FY20 from Rs 105.5 billion last year. On financing side, the
government remained firm on its commitment of zero fresh budgetary borrowing from SBP, which helped
meet performance criteria under IMF program and also give a promising outlook for inflation.

External sector continued to show steady improvement with sizeable reduction in the current account
deficit from USD 6.73 billion in 5MFY19 to USD 1.82 billion in 5MFY20 (down 72.9% YoY). This was mainly
due to contraction in the trade deficit which decreased by 30.7% to USD 11.63 billion in 1HFY20 as imports
of goods fell by 17.1% to USD 23.16 billion, while exports of goods increased by 3.2% to USD 11.6 billion.
As a result current account balance recorded a surplus in October 2019 after a gap of ~3.6 years (last
current account surplus was recorded in April-2016). The capital and financial account also improved due
to higher FDI and continued portfolio inflows reflecting renewed investor confidence. Furthermore,
government’s efforts to facilitate foreign investment in Pakistan’s PKR denominated debt market also bore
fruit and as a result, Pakistan managed to attract USD 1.5 billion inflows into its local debt market (mainly
T-Bills-hot money) via special convertible rupee accounts.

Disbursement under the IMF along with inflows of from other multilateral agencies and reduction in
current account deficit helped foreign exchange reserves to increase to USD 18.1 billion during the period,
an increase of 24.9% since the start of the current fiscal year. Along with improved reserves, adjustment in
current account and improved sentiments led to rupee strengthening against US dollar since start of the
current fiscal year from a low of PKR 162.4/USD to PKR 154.9/USD. GDP growth for FY20 is expected to be
range bound between 2.5- 3%. There remain challenges in the form of fiscal slippages, rising inflation and
impending FATF decision.
Money Market Review
State Bank of Pakistan (SBP) decided to maintain the policy rate at 13.25% after raising it by 1% in the
month of July 2019. The market was anticipating a reversal in the interest rate cycle, but rising pressures
on inflation kept the policy rate in check. Due to softening of oil and commodity prices and slowdown in
global economies, money market perceived that inflation may have peaked out in the period under review,
triggering sharp inversion in the yield curve which was witnessed by steep decline in secondary market
yields of government papers. Hence, increase in demand for longer tenure government bonds pushed the
PIB yields down where 10 years bond closed at 11.64% (down by 221 bps), 5 years closed at 10.91% (down
by 296 bps) and 3 years closed at 11.00% (down by 272 bps). Part of the reason for the increased demand
for government papers can be attributed to the high interest of foreign investors in fixed income securities
issued by Pakistan. Foreign investors deployed over USD1.4bn in domestic fixed income instruments
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during the first six months, providing much needed support to the foreign reserves maintained by the
central bank.

On the liquidity front, money market remained stable due to continuous OMO injections from SBP. During
the period, Central bank borrowed additional Rs. 9.99 trillion through T-bills and Rs. 1.25 trillion through
PIBs in the primary market. However, in order to support the market, SBP injected PKR 975 billion liquidity
through OMO injections.

On the Islamic money market front, Ijarah Sukuks price witnessed an increase due to lack of availability of
Shariah compliant government /Ijarah securities. It is pertinent to mention here that out of the four
running Ijarah Sukuks issues worth Rs. 385 billion, three Ijarahs worth Rs. 314 billion were matured during
FY19 and the last surviving Ijarah is due for maturity in June 2020. The government did not carry out any
Ijarah Sukuks auction since June 2017. In the last fiscal year, the Government issued Pakistan Energy
Sukuks – I in March 2019 worth PKR 200 billion. The second tranche of Energy Sukuks is expected in the
current fiscal year. However, corporate sector continued to raise funds through Sukuks and Islamic
Commercial Paper, which played key role in absorbing some portion of excess liquidity available with
Islamic institutions.
Equity Review
During the first half of FY20, the KMI-30 made a sharp recovery and posted an impressive return of 22%
to close the period at 66,032 while the KSE-100 posted an increase of 20% at 40,735 in the same period.
This was after recording a decline of 17% in KMI-30 from June 30th, 2019 levels. The participation of
investors improved during the period with both the KMI-30 and KSE 100 index volumes up 29 and 19%
respectively. Daily traded value, although still lower by 27% YoY at USD 42.1mn in FY20, bounced sharply
from its low of USD 9.1mn in July 19 (levels last seen in December 2011).

The stock market started period on a subdued note because of concerns over macroeconomic outlook and
consequently KMI-30 and KSE 100 index went down by 17% and 15% respectively and touched the lowest
level of 44,929 and 28,764 as on August 16, 2019. However, subsequently, KMI 30 and KSE 100 index
bounced back by a sharp recovery of 47% and 42% from its lowest level and recovery led mainly on
account of i) successful entry into USD 6bn IMF program which helped obtain much needed multi-
lateral/bilateral aid, ii) After successive rate hikes, State Bank of Pakistan maintained status quo rate in last
two monetary policies, sparking expectations monetary easing going forward, iii) marked improvement in
current account, iv) hot money flow of USD 1.4bn supporting forex reserves and providing stability to PKR
vs USD. The overall political climate also contributed towards better investor sentiments as the
government showed a relatively more reconciliatory to tone towards its opposition.
Global Markets
Globally trend in investment flows into EM ETF reversed as investors deployed over USD7.26bn in EM
markets despite strengthening US dollar. This inflow comes after a dismal 1QFY20 where USD7.5bn worth
of securities were liquidated. MSCI EM recorded an increase of 6% compared to S&P 500 rise of 10% and
MSCI Developed market Index increase of 9% during the same period. The US markets continued to
outperform over the monetary easing by Fed. That said, overall global market sentiment improved towards
the end of the period as possibility of a trade deal between China and US and lower uncertainty of Brexit
led to positive sentiments across all markets with developed, emerging and frontier markets all witnessing
a rally.

Oil prices remained relatively stable, though news regarding US-China trade war brought some volatility at
times. Overall, Brent crude ended first half down 1% to close at $66.55 per barrel.
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Major contributors to the Index
During the period, Fertilizer sector was amongst the top positive contributing sectors. The top contributing
stocks in the KMI-30 index in the 1HFY20 were:

Positive Contributors to the Index Contribution to KMI-30 (Points) Total Return (%)
Engro Corp Ltd/Pakistan 2,271 +37.23%
Dawood Hercules Corp Ltd 1,238 +43.75%
Pakistan Petroleum Ltd 978 +15.64%
Engro Fertilizers Ltd 969 +33.76%
Mari Petroleum Co Ltd 883 +43.02%

On the flip side, stocks in the Refining, Oil Marketing and Engineering sectors were amongst the worst
contributors. The key laggards in the KMI-30 index during the period were:

Negative Contributors to the Index Contribution to KMI-30 (Points) Total Return (%)
National Refinery Ltd -20 -8.36%
Byco Petroleum Pakistan Ltd -15 -5.30%
Thal Ltd -8 -0.97%
Shell Pakistan Ltd -5 -1.62%
Millat Tractors Ltd -2 -0.29%

The overall movement of the KMI-30 during the period can be observed in the following graph:

Equity Flows
With respect to flows, banks, mutual funds and insurance companies remained net sellers during first half
of FY20, offloading positions worth US91mn, US$53mn and US$20mn, respectively. The supply was
partially absorbed by individuals and foreigners with inflows of US$140mn and US$8mn respectively.
Foreign inflow was mainly concentrated in fertilizer (US$35mn) and oil and gas marketing (US$9.35mn),
however, E&P sector witnessed outflow of (US$28mn).
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Mutual Fund Industry Review
During first half of FY20, AUMs of the mutual fund industry size increased by 27.1% to Rs. 674 bn. Shariah
Compliant AUMs increased by 27.1% to Rs. 249 bn which brings the share of Shariah Compliant funds at
36.9% in the mutual fund industry. Al Meezan’s share in the Mutual Funds industry stood at 18.3% while
amongst the Shariah Compliant Funds, it has a share of 49.4% as of December 31, 2019. This marked an
increase in market share by 107 basis points with-in the mutual fund AUMs and 290 basis points with-in
the Shariah Compliant segment of the industry, for Al Meezan.
The change in AUMs of industry of 1HFY20 over FY19 is as under;

FY19 1HFY20 Change

(Rs. In Billion) (%)
Sovereign, Money Market and Income Funds
Shariah Compliant Funds 92 136 48.2
Conventional Funds 192 269 39.6
Total Funds 284 404 42.3

Equity Funds (Including Index Tracker Funds)

Shariah Compliant Funds 64 75 16.3
Conventional Funds 119 133 12.1
Total Funds 183 208 13.6

Capital Protected, balanced, and asset allocation Funds

Shariah Compliant Funds 23 19 (17.3)
Conventional Funds 14 13 (8.0)
Total Funds 37 32 (13.7)

Commodity Funds
Shariah Compliant Funds 0.5 0.4 (24.4)
Total Funds 0.5 0.4 (24.4)

Voluntary Pension Funds

Shariah Compliant Funds 17 19 15.4
Conventional Funds 9 10 13.5
Total Funds 26 30 14.7

Meezan Tahaffuz Pension Fund (MTPF) Market Share

In Overall Segment (%) 34.85 34.67 (0.2)
In Shariah Compliant Segment (%) 54.05 53.45 (0.6)

Performance Review (Funds)

Meezan Islamic Fund
The net assets of Meezan Islamic Fund (MIF) as at December 31, 2019 stood at Rs. 29,675 million compared
to Rs. 25,740 million at the end of June 2019, an increase of 15%. The net asset value (NAV) per unit as at

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December 31, 2019 was Rs. 57.6252 in comparison to Rs. 47.9235 per unit as on June 30, 2019 translating
into a return of 20.23% during the period compared to the benchmark return of KSE Meezan Index (KMI
30) which increased by 22.01%.
Al Meezan Mutual Fund
The net assets of Al Meezan Mutual Fund (AMMF) as at December 31, 2019 were Rs. 5,037 million
compared to Rs. 4,768 million at the end of June 2019, an increase of 6%. The net asset value per unit as at
December 31, 2019 was Rs. 16.1162 compared to Rs. 13.3539 per unit on June 30, 2019 translating into a
return of 20.67% during the period compared to the benchmark return of KSE Meezan Index (KMI 30)
which increased by 22.01%.

KSE Meezan Index Fund

The net assets of KSE Meezan Index Fund (KMIF) as at December 31, 2019 were Rs. 1,913 million compared
to Rs. 1,517 million at June 30, 2019, an increase of 26%. The net asset value per unit at December 31, 2019
was Rs. 64.3831 as compared to Rs. 52.9470 per unit on June 30, 2019 translating into a return of 21.60%
during the period compared to the benchmark return of KSE Meezan Index (KMI 30) which increased by
22.01%.
Meezan Dedicated Equity Fund
The net assets of Meezan Dedicated Equity Fund (MDEF) as at December 31, 2019 were Rs. 1,255 million
compared to Rs. 1,761 million at June 30, 2019, a decline of 29%. The net asset value per unit at December
31, 2019 was Rs. 42.2756 as compared to Rs. 35.5081 per unit on June 30, 2019 translating into a return of
19.04% during the period compared to the benchmark return of KSE Meezan Index (KMI 30) which
increased by 22.01%.
Meezan Energy Fund
The net assets of Meezan Energy Fund (MEF) as at December 31, 2019 were Rs. 608 million compared to
Rs. 599 million in June 2019, an increase of 2%. The net asset value per unit as at December 31, 2019 was
Rs. 39.5418 as compared to Rs. 33.3649 per unit on June 30, 2019, translating into a return of 18.49%
during the period compared to the benchmark return of KSE Meezan Index (KMI 30) which increased
by 22.01%.
Meezan Asset Allocation Fund
The net assets of Meezan Asset Allocation Fund (MAAF) as at December 31, 2019 were Rs. 1,644 million
compared to Rs. 1,854 million at June 30, 2019, a decline of 11%. The net asset value per unit as at
December 31, 2019 was Rs. 42.4834 as compared to Rs. 35.4328 per unit on June 30, 2019 translating into
a return of 19.90% during the period compared to the benchmark return which increased by 19.50%.
Meezan Islamic Income Fund
The net assets of Meezan Islamic Income Fund (MIIF) as at December 31, 2019 were Rs. 21,438 million
compared to Rs. 9,471 million at June 30, 2019, an increase of 126%. The net asset value per unit as at
December 31, 2019 was Rs. 54.5540 compared to Rs. 51.4367 per unit on June 30, 2019 translating into an
annualized return of 12.01% compared to the benchmark annualized return of 6.12%. At period end, the
fund was 20% invested in Islamic Corporate Sukuks, 11% in Islamic Commercial Papers, 3% in Certificate
of Musharaka and 66% of the net assets were placed with Islamic Banks or windows of Islamic banks.
Meezan Sovereign Fund
The net assets of Meezan Sovereign Fund (MSF) as at December 31, 2019 were Rs. 3,910 million compared
to Rs. 5,705 million at June 30, 2019, a decline of 31%. The net asset value per unit at December 31, 2019
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was Rs. 54.5952 as compared to Rs. 51.5293 per unit on June 30, 2019 translating into an annualized return
of 11.79% compared to the benchmark annualized return of 9.33%. At period end, the fund was 28%
invested in GoP guaranteed Sukuks and 72% of the net assets were placed with Islamic Banks or windows
of Islamic banks.
Meezan Cash Fund
The net assets of Meezan Cash Fund (MCF) at December 31, 2019 were Rs. 10,308 million compared to Rs.
8,851 million at June 30, 2019, an increase of 16%. The net asset value per unit at December 31, 2019 was
Rs. 53.3692 as compared to Rs. 50.4731 on June 30, 2019 translating into an annualized return of 11.37%
as compared to the benchmark annualized return of 5.49%. At period end 8% of the funds were placed
through Bai Muajjal, 13% of the fund was placed in Islamic Commercial Papers, 6% in Islamic Corporate
Sukuks and 73% of the net assets were placed with Islamic Banks or windows of Islamic banks.
Meezan Rozana Amdani Fund
The net assets of Meezan Rozana Amdani Fund (MRAF) at December 31, 2019 were Rs. 32,040 million
compared to Rs. 16,134 million at June 30, 2019, an increase of 99%. The net asset value per unit at
December 31, 2019 was Rs. 50.0000. During the period fund provided an annualized return of 12.31% as
compared to the benchmark annualized return of 5.49%.
Meezan Balanced Fund
The net assets of Meezan Balanced Fund (MBF) as at December 31, 2019 were Rs. 4,682 million compared
to Rs. 5,350 million at June 30, 2019, a decline of 13%. The net asset value per unit as at December 31, 2019
was Rs. 15.4063 as compared to Rs. 13.4608 per unit on June 30, 2019 translating into a return of 14.47%
during the quarter compared to the benchmark return which increased by 13.83%.

Meezan Financial Planning Fund of Funds

Aggressive Allocation Plan
The net assets of the plan were Rs. 327 million as at December 31, 2019 compared to Rs. 365 million at
June 30, 2019. . The plan provided a return of 16.70% during the period compared to the benchmark return
which increased by 17.54%.
Moderate Allocation Plan
The net assets of the plan were Rs. 145 million as at December 31, 2019 compared to Rs. 203 million at
June 30, 2019. The plan provided a return of 13.30% during the period compared to the benchmark return
which increased by 12.85%.
Conservative Allocation Plan
The net assets of the plan as at December 31, 2019 were Rs. 169 million compared to Rs. 222 million at
June 30, 2019. The plan provided a return of 9.69% during the period compared to the benchmark return
which increased by 7.98%.
Meezan Asset Allocation Plan-I
The net assets of the plan as at December 31, 2019 were Rs. 326 million compared to Rs. 593 million at
June 30, 2019. The plan provided a return of 5.22% during the period compared to the benchmark return
which increased by 6.80%.
Meezan Strategic Allocation Fund
Meezan Strategic Allocation Plan-I
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The net assets of the plan as at December 31, 2019 were Rs. 929 million compared to Rs. 1,067 million at
June 30, 2019. The plan provided a return of 7.90% during the period compared to the benchmark return
which increased by 8.46%.
Meezan Strategic Allocation Plan-II
The net assets of the plan as at December 31, 2019 were Rs. 548 million compared to Rs. 728 million at
June 30, 2019. The plan provided a return of 15.40% during the period compared to the benchmark return
which increased by 16.18%.
Meezan Strategic Allocation Plan-III
The net assets of the plan as at December 31, 2019 were Rs. 877 million compared to Rs. 891 million at
June 30, 2019. The plan provided a return of 15.23% during the period compared to the benchmark return
which increased by 16.33%.
Meezan Strategic Allocation Plan-IV
The net assets of the plan as at December 31, 2019 were Rs. 967 million compared to Rs. 1,003 million at
June 30, 2019. The plan provided a return of 15.30% during the period compared to the benchmark return
which increased by 16.38%.
Meezan Strategic Allocation Plan-V
The net assets of the plan as at December 31, 2019 were Rs. 239 million compared to Rs. 316 million at
June 30, 2019. The plan provided a return of 14.85% during the period compared to the benchmark return
which increased by 15.91%.
Meezan Capital Preservation Plan-III
The net assets of the plan as at December 31, 2019 were Rs. 843 million compared to Rs. 1,099 million at
June 30, 2019. The plan provided a return of 7.51% during the period compared to the benchmark return
of 4.41%.
Meezan Strategic Allocation Fund -II
Meezan Capital Preservation Plan-IV
The net assets of the plan as at December 31, 2019 were Rs. 1,376 million compared to Rs. 1,553 million at
June 30, 2019. The plan provided a return of 9.24% during the period compared to the benchmark return
which increased by 7.11%.
Meezan Capital Preservation Plan-V
The net assets of the plan as at December 31, 2019 were Rs. 306 million compared to Rs. 474 million at
June 30, 2019. The plan provided a return of 9.64% during the period compared to the benchmark return
of 7.60%.
Meezan Capital Preservation Plan-VI
The net assets of the plan as at December 31, 2019 were Rs. 300 million compared to Rs. 384 million at
June 30, 2019. The plan provided a return of 9.42% during the period compared to the benchmark return
which increased by 7.66%.
Meezan Capital Preservation Plan-VII
The net assets of the plan as at December 31, 2019 were Rs. 169 million compared to Rs. 207 million at
June 30, 2019. The plan provided a return of 10.29% during the period compared to the benchmark return
which increased by 8.49%.
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Meezan Capital Preservation Plan-VIII
The net assets of the plan as at December 31, 2019 were Rs. 99 million compared to Rs. 131 million at June
30, 2019. The plan provided a return of 10.08% during the period compared to the benchmark return of
7.05%.
Meezan Strategic Allocation Fund -III
Meezan Capital Preservation Plan-IX
The net assets of the plan as at December 31, 2019 were Rs. 99 million compared to Rs. 34 million at June
30, 2019. The plan provided a return of 11.17% during the period compared to the benchmark return
which increased by 6.46%.
Meezan Gold Fund (MGF)
The net assets of the fund as at December 31, 2019 were 361 million compared to Rs. 478 million at June
30, 2019, a decline of 24%. The Fund provided a return of 6.13% during the period compared to the
benchmark return of 6.24%.
Meezan Tahaffuz Pension Fund (MTPF)
MTPF comprises of four sub funds namely Equity sub fund, Debt sub fund, Money Market sub fund and Gold
sub fund. For the period ended December 31, 2019, the equity sub-fund provided a return of 20.89% and
gold sub fund provided a return of 5.66%, while the debt and money market sub-funds provided annualized
returns of 11.39% and 10.88% respectively. Performance review for each sub fund is given as under:
Equity Sub Fund
The net assets of this sub fund stood at Rs. 4,666 million at December 31, 2019 compared to Rs. 4,086 million
at June 30, 2019, an increase of 14%. The net asset value per unit of the plan was Rs. 456.4783 as at December
31, 2019 as compared to Rs. 377.5765 as at June 30, 2019.
Debt Sub Fund
The net assets of this sub fund stood at Rs. 2,897 million at December 31, 2019 compared to Rs. 2,807 million
at June 30, 2019, an increase of 3%. The net asset value per unit of the plan was Rs. 249.6848 as at December
31, 2019 as compared to Rs. 236.1122 as at June 30, 2019.
Money Market Sub Fund
The net assets of this sub fund stood at Rs. 2,628 million at December 31, 2019 compared to Rs. 2,073 million
at June 30, 2019, an increase of 27%. The net asset value per unit of the plan was Rs. 247.1034 at the end of
December 31, 2019 as compared to Rs. 234.2456 as at June 30, 2019.
Gold Sub Fund
The net assets of this sub fund stood at Rs. 92 million at December 31, 2019 compared to Rs. 84 million at
June 30, 2019, an increase of 9%. The net asset value per unit of the plan was Rs. 137.8515 at the end of
December 31, 2019 as compared to Rs. 130.4834 as at June 30, 2019.
Outlook
Despite the challenges faced by the Government recently, we have witnessed that some remedial actions
have been taken, which will bear fruits ahead, albeit slowly, as for now, it is only reflected in significant
reduction in current account deficit.

____________________________________________________________________________________________________
1st Floor, Block ‘C’, Finance & Trade Centre, Shahrah-e-Faisal, Karachi 74400, Pakistan.
UAN: (92-21) 111-633-926 (111-MEEZAN) Fax: (92-21) 35676143
E-mail: info@almeezangroup.com Web Site: www.almeezangroup.com
Going forward, Pakistan is set to slowly but surely meet the IMF’s quantitative targets as the program is off
to a decent start. However, the inevitable strings attached to any IMF Program may keep the Pakistani
economy from witnessing an immediate take-off. We expect that further action on the fiscal front will be
essential to achieve any program targets. In line with the economic slowdown being witnessed on account
of austerity measures and structural reforms, the SBP has forecasted GDP growth to clock in at around 3.5%
for FY20. In contrast, IMF forecasts it to remain around 2.4%. Inflation is expected to average 11-12% in
FY20 as utility tariffs have increased. Despite the stability anticipated in the exchange rate, it is expected that
the monetary tightening cycle, for the time being, may prolong based on the recent rising inflation

While fundamental analysis of the local equity market proves to be favorable in the long run, slowing
economic and business activity indicates that the path to recovery is a tedious and gradual phenomenon. The
structural reforms in the country, the re-rating of the market, and the mean reversion of the KSE-100 index
have temporarily fueled the positive sentiment in investors. But, political stability in the country,
macroeconomic reforms, and geopolitical events will remain catalysts for the performance of the stock
market.
Acknowledgement
We take this opportunity to thank our valued investors for reposing their faith in Al Meezan Investments,
making it the largest asset management company in the private sector in Pakistan. We also thank the
regulator, the Securities and Exchange Commission of Pakistan and our Trustee, the Central Depository
Company of Pakistan for their support. Furthermore, we would like to thank the members of the Shariah
Supervisory Board of Meezan Bank for their continued assistance and support on Shariah aspects of fund
management.

For and on behalf of the Board

Mohammad Shoaib, CFA

Chief Executive Officer
Date: February 10, 2020

____________________________________________________________________________________________________
1st Floor, Block ‘C’, Finance & Trade Centre, Shahrah-e-Faisal, Karachi 74400, Pakistan.
UAN: (92-21) 111-633-926 (111-MEEZAN) Fax: (92-21) 35676143
E-mail: info@almeezangroup.com Web Site: www.almeezangroup.com
 EARNING CREDIBILITY
Meezan IN THE CAPITAL CITY OF PAKISTAN
Islamic Fund

MEEZAN ISLAMIC FUND (MIF)

Meezan Islamic Fund seeks to optimize total investor returns Islamabad Branch
by participating in Shariah compliant equities focusing on both
capital gains and dividend income.

SHAH FAISAL MOSQUE

(ISLAMABAD)
 EARNING CREDIBILITY
Meezan IN THE CAPITAL CITY OF PAKISTAN
Islamic Fund

MEEZAN ISLAMIC FUND (MIF)

Meezan Islamic Fund seeks to optimize total investor returns Islamabad Branch
by participating in Shariah compliant equities focusing on both
capital gains and dividend income.

SHAH FAISAL MOSQUE

(ISLAMABAD)
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. Mohammad Shoaib, CFA Chief Executive Officer
Mr. Muhammad Abdullah Ahmed Nominee Director - MBL
Mr. Mohammad Furquan R Kidwai Independent Director
Mr. ljaz Farooq Nominee Director - MBL
Mr. Moin M. Fudda Independent Director
Ms. Saima Kamila Khan Independent Director
Mr. Arshad Majeed Nominee Director - MBL
Mr. Naeem Abdul Sattar Nominee Director - PKIC
Syed Amir Ali Zaidi Nominee Director – PKIC

CFO & COMPANY SECRETARY OF THE MANAGEMENT COMPANY

Syed Owais Wasti

AUDIT COMMITTEE
Mr. Moin M. Fudda Chairman
Mr. Arshad Majeed Member
Mr. Naeem Abdul Sattar Member

RISK MANAGEMENT COMMITTEE

Mr. Muhammad Abdullah Ahmed Chairman
Syed Amir Ali Zaidi Member
Mr. Naeem Abdul Sattar Member

HUMAN RESOURSE & REMUNERATION COMMITTEE

Mr. Moin M. Fudda Chairman
Mr. Ariful Islam Member
Mr. Naeem Abdul Sattar 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:

TRANSFER AGENT
Meezan Bank Limited
Meezan House
C-25, Estate Avenue, SITE, Karachi.
Phone: 38103538 Fax: 36406017
Website: www.meezanbank.com

DISTRIBUTORS
Al Meezan Investment Management Limited
Meezan Bank Limited
Standard Chartered Bank (Pakistan) Limited
MEEZAN ISLAMIC FUND
CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES
AS AT DECEMBER 31, 2019

December 31, June 30,

2019 2019
(Unaudited) (Audited)
Note (Rupees in '000)
Assets
Balances with banks 5 2,045,404 1,340,974
Investments 6 28,556,729 25,014,329
Receivable against sale of investments 10,739 152,085
Receivable against conversion of units 51,323 62,891
Dividend receivable 10,390 117,132
Deposits, prepayments and other receivables 27,420 18,566
Total assets 30,702,005 26,705,977

Liabilities
Payable to Al Meezan Investment Management Limited - the Management Company 87,196 79,964
Payable to Central Depository Company of Pakistan Limited - the Trustee 2,888 2,579
Payable to Meezan Bank Limited 722 135
Payable to the Securities and Exchange Commission of Pakistan 7 2,464 32,360
Payable on redemption and conversion of units 113,964 74,075
Payable against purchase of investments 54,332 122,665
Accrued expenses and other liabilities 8 765,677 653,860
Total liabilities 1,027,243 965,638

Net assets 29,674,762 25,740,339

Contingencies and commitments 9

Unit holders’ funds (as per statement attached) 29,674,762 25,740,339

(Number of units)

Number of units in issue 514,961,315 537,113,594

(Rupees)

Net asset value per unit 57.6252 47.9235

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN ISLAMIC FUND
CONDENSED INTERIM INCOME STATEMENT (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

Six months period ended Quarter ended

December 31, December 31,
2019 2018 2019 2018
Note (Rupees in '000) (Rupees in '000)
Income
Net realised (loss) / gain on sale of investments (297,585) (469,131) 114,930 (379,930)
Dividend income 795,545 941,093 449,158 528,307
Profit on saving accounts with banks 106,506 92,890 59,970 54,132
604,466 564,852 624,058 202,509
Net unrealised appreciation / (diminution) on re-measurement of
investments classified as 'financial assets
at fair value through profit or loss' 6.1 4,598,140 (4,793,465) 6,107,419 (3,526,258)

Total income / (loss) 5,202,606 (4,228,613) 6,731,477 (3,323,749)

Expenses
Remuneration of Al Meezan Investment Management Limited
- the Management Company 246,417 373,735 133,279 179,727
Sindh Sales Tax on management fee 32,034 48,586 17,326 23,365
Remuneration of Central Depository Company of Pakistan Limited
- the Trustee 12,824 19,191 6,916 9,239
Sindh Sales Tax on remuneration of the Trustee 1,667 2,495 899 1,201
Annual fee to the Securities and Exchange Commission of Pakistan 7 2,464 17,752 1,333 8,537
Auditors' remuneration 462 480 266 263
Charity expense 21,975 13,495 12,610 8,166
Fees and subscription 1,406 2,091 699 1,024
Legal and professional charges 160 - - -
Brokerage expense 11,262 8,658 7,359 5,305
Bank and settlement charges 1,512 1,545 897 831
Printing charges - 503 - 251
Allocated expenses 12 12,321 18,687 6,664 8,987
Selling and marketing expense 14 49,283 74,747 26,655 35,945
Provision for Sindh Workers' Welfare Fund (SWWF) 8.1 96,176 - 96,176 -
Total expenses 489,963 581,965 311,079 282,841

Net income / (loss) for the period before taxation 4,712,643 (4,810,578) 6,420,398 (3,606,590)

Taxation 14 - - - -

Net income / (loss) for the period after taxation 4,712,643 (4,810,578) 6,420,398 (3,606,590)

Allocation of net income for the period

Net income for the period after taxation 4,712,643 -
Income already paid on units redeemed (47,607) -
4,665,036 -
Accounting income available for distribution
- Relating to capital gains 4,300,555 -
- Excluding capital gains 364,481 -
4,665,036 -

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN ISLAMIC FUND
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

Six months period ended, Quarter ended,

December 31, December 31,
2019 2018 2019 2018
Note (Rupees in '000) (Rupees in '000)

Net income / (loss) for the period after taxation 4,712,643 (4,810,578) 6,420,398 (3,606,590)

Other comprehensive income for the period - - - -

Total comprehensive income / (loss) for the period 4,712,643 (4,810,578) 6,420,398 (3,606,590)

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN ISLAMIC FUND
STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUNDS (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

2019 2018

Unrealised Unrealised
(Accumul-
appreciation Undistri- appreciation
ated loss) /
Capital Value 'available for Total Capital Value buted 'available for Total
Undistri-
sale' income sale'
buted income
investments investments

------------------------------------------------- Rupees in '000 -------------------------------------------------

------------------------------------------------- Rupees in '000 -------------------------------------------------

Net assets at the beginning of the period

as previously reported (Audited) 27,600,726 (1,860,387) - 25,740,339 32,024,698 6,467,562 622,394 39,114,654
Change in accounting policy - - - - - 622,394 (622,394) -
Net assets at the beginning of the period 27,600,726 (1,860,387) - 25,740,339 32,024,698 7,089,956 - 39,114,654

Issue of 243,645,559 units (December 31, 2018:

181,217,662 units)
- Capital value (at net asset value per unit
at the beginning of the period) 11,676,348 - - 11,676,348 11,476,515 - - 11,476,515
- Element of income / (loss) 434,877 - - 434,877 (405,057) - - (405,057)
Total proceeds on issuance of units 12,111,225 - - 12,111,225 11,071,458 - - 11,071,458

Redemption of 265,797,838 units (December 31, 2018:

211,259,030 units)
- Capital value (at net asset value per unit
at the beginning of the period) 12,737,963 - - 12,737,963 13,379,034 - - 13,379,034
- Element of loss / (income) 103,875 47,607 - 151,482 (602,449) - - (602,449)
Total payments on redemption of units 12,841,838 47,607 - 12,889,445 12,776,585 - - 12,776,585

Total comprehensive income / (loss) for the period 4,712,643 4,712,643 - (4,810,578) - (4,810,578)
Distribution of cash dividend - - - - - - - -
Net income / (loss) for the period less distribution - 4,712,643 - 4,712,643 - (4,810,578) - (4,810,578)

Net assets at the end of the period 26,870,113 2,804,649 - 29,674,762 30,319,571 2,279,378 - 32,598,949

(Accumulated loss) / undistributed income brought

forward as previously reported (Audited)
- Realised income 5,520,342 12,814,144
- Unrealised loss (7,380,729) (6,346,582)
(1,860,387) 6,467,562
Change in accounting policy - 622,394
(Accumulated loss) / Undistributed income brought forward (1,860,387) 7,089,956

Accounting income available for distribution

- Relating to capital gains 4,300,555 -
- Excluding capital gains 364,481 -
4,665,036 -

Net loss for the period after taxation - (4,810,578)

Distribution during the period - -

Undistributed income carried forward 2,804,649 2,279,378

Undistributed income carried forward

- Realised (loss) / income (1,793,491) 7,072,843
- Unrealised income / (loss) 4,598,140 (4,793,465)
2,804,649 2,279,378

(Rupees) (Rupees)
Net assets value per unit at the beginning of the period 47.9235 63.3300
Net assets value per unit at the end of the period 57.6252 55.4790

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN ISLAMIC FUND
CONDENSED INTERIM CASH FLOW STATEMENT (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

Six months period ended

December 31,
2019 2018
(Rupees in '000)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income / (loss) for the period before taxation 4,712,643 (4,810,578)

Adjustments for:
Net unrealised (appreciation) / diminution on re-measurement of investments
classified as 'financial assets at fair value through profit or loss' (4,598,140) 4,793,465
114,503 (17,113)
Decrease in assets
Investments - net 1,055,740 1,366,719
Receivable against sale of investments 141,346 -
Dividend receivable 106,742 74,361
Deposits, prepayments and other receivables (8,854) (4,177)
1,294,974 1,436,903
Increase in liabilities
Payable to Al Meezan Investment Management Limited - the Management Company 7,232 (51,602)
Payable to Central Depository Company of Pakistan Limited - the Trustee 309 (453)
Payable to Meezan Bank Limited 587 (1,019)
Payable to the Securities and Exchange Commission of Pakistan (29,896) (24,261)
Payable against purchase of investments (68,333) 87,535
Accrued expenses and other liabilities 111,817 12,649
21,716 22,849

Net cash generated from operating activities 1,431,193 1,442,639

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts against issuance and conversion of units 12,122,793 11,112,547

Payment against redemption and conversion of units (12,849,556) (12,817,213)
Net cash used in financing activities (726,763) (1,704,666)

Net increase / (decrease) in cash and cash equivalents during the period 704,430 (262,027)
Cash and cash equivalents at the beginning of the period 1,340,974 2,730,709

Cash and cash equivalents at the end of the period 2,045,404 2,468,682

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN ISLAMIC FUND
NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

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 as the Management Company and the Central Depository Company of Pakistan Limited (CDC)
as the 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 (the NBFC Rules) and the Non-Banking Finance Companies and Notified Entities
Regulations, 2008 (the 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 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 unitholders 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 an 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 Credit Rating Company Limited dated
December 31, 2019 (2018: AM1 dated December 28, 2018) and by PACRA dated December 28, 2019. 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.

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 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.

3. BASIS OF PREPARATION

3.1 STATEMENT OF COMPLIANCE

These condensed interim 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 Accounting Standard (IAS) 34, Interim Financial Reporting, 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.

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
International Accounting Standard (IAS) 34, Interim Financial Reporting, 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.

The disclosures made in these condensed interim financial statements have, however, been limited based on the
requirements of the International Accounting Standard 34: 'Interim Financial Reporting'. These condensed interim
financial statements do not include all the information and disclosures required in a full set of financial statements and
should be read in conjunction with the annual published audited financial statements of the Fund for the year ended
June 30, 2019.
 2

These condensed interim financial statements are unaudited. However, a limited scope review has been performed by
the statutory auditors. In compliance with Schedule V of the NBFC Regulations, the directors of the Management
Company declare that these condensed interim financial statements give a true and fair view of the state of affairs of
the Fund as at December 31, 2019.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, JUDGMENTS AND RISK

MANAGEMENT

4.1 The accounting policies adopted and the methods of computation of balances used in the preparation of these
condensed interim financial statements are the same as those applied in the preparation of the annual financial
statements of the Fund for the year ended June 30, 2019.

4.2 The preparation of the condensed interim financial statements in conformity with accounting and reporting standards
as applicable in Pakistan requires management to make estimates, assumptions and use judgments that affect the
application of policies and reported amounts of assets, liabilities, income and expenses. Estimates, assumptions and
judgments are continually evaluated and are based on historical experience and other factors, including reasonable
expectations of future events. Revisions to accounting estimates are recognised prospectively commencing from the
period of revision. In preparing the condensed interim financial statements, the significant judgments made by
management in applying the Fund’s accounting policies and the key sources of estimation and uncertainty were the
same as those applied to the financial statements as at and for the year ended June 30, 2019. The Fund’s financial
risk management objectives and policies are consistent with those disclosed in the annual financial statements of the
Fund for the year ended June 30, 2019.

4.3 Amendments to published accounting and reporting standards that are effective in the current period

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, 2019. However, these do not have any significant impact on the Fund's
operations and, therefore, have not been detailed in these condensed interim financial statements.

4.4 Standards, interpretations and amendments to published accounting and reporting standards that are not yet
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, 2020
- IAS 8 - 'Accounting policies, change in accounting
estimates and errors' (amendment) January 1, 2020

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 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, 2020. However, these do not have any significant
impact on the Fund's operations and, therefore, have not been detailed in these condensed interim financial
statements.

December 31, June 30,

2019 2019
(Unaudited) (Audited)
5. BALANCES WITH BANKS Note (Rupees in '000)

In current accounts 7,142 797

In saving accounts 5.1 2,038,262 1,340,177
2,045,404 1,340,974

5.1 The balance in saving accounts have an expected profit ranging from 3.00% to 13.50% per annum (June 30, 2019:
3.32% to 12.50% per annum).

December 31, June 30,

2019 2019
(Unaudited) (Audited)
6. INVESTMENTS Note (Rupees in '000)

Shares of listed companies - 'ordinary shares' 6.1 28,556,729 25,014,329

28,556,729 25,014,329
 3

6.1 Shares of listed companies - 'ordinary shares'

Percentage in relation to
Paid-up
Unrealised
Carrying Market value Total capital of
Purchases Sales As at gain / Net
As at July 1, Bonus / value as at as at market investee
Name of the investee company during the during the December 31, (loss) as at assets of
2019 Right issue December December value of company
period period 2019 December the
31, 2019 31, 2019 invest- (with face
31, 2019 Fund
ments value of
investment)
-------------------------------Number of shares------------------------------- -------------------(Rupees in '000)---------------------------------------------%-------------------------
Sectors / companies

Automobile Assembler
Ghandhara Industries Limited 777,200 54,000 - 619,500 211,700 17,750 28,215 10,465 0.10 0.10 0.50
Ghandhara Nissan Limited 274,372 - - 274,372 - - - - - - -
Honda Atlas Cars (Pakistan) Limited 80,400 171,500 - 95,400 156,500 34,641 34,264 (377) 0.12 0.12 0.11
Indus Motor Company Limited - 89,740 - - 89,740 108,348 104,247 (4,101) 0.35 0.37 0.11
Millat Tractors Limited 81,140 5,000 7,123 29,150 64,113 48,389 45,162 (3,227) 0.15 0.16 0.13
0.72 0.75 0.85
Automobile Parts & Accessories
Agriauto Industries Limited (Note 6.2.1) - 300,400 - - 300,400 62,821 60,080 (2,741) 0.20 0.21 1.04
Thal Limited (Note 6.2.1) - 25,000 - 25,000 - - - - - - -
0.20 0.21 1.04
Cement
Attock Cement Pakistan Limited 270,200 - - - 270,200 19,295 27,931 8,636 0.09 0.10 0.20
Cherat Cement Company Limited - 2,354,500 80,600 310,000 2,125,100 68,937 112,737 43,800 0.38 0.39 1.09
DG Khan Cement Company Limited 2,368,222 2,130,000 - 3,268,222 1,230,000 69,201 91,352 22,151 0.31 0.32 0.28
Fauji Cement Company Limited - 2,520,000 - 2,520,000 - - - - - - -
Kohat Cement Company Limited 3,914,350 - - 344,000 3,570,350 187,550 276,345 88,795 0.93 0.97 1.78
Lucky Cement Limited 4,701,429 644,900 - 881,300 4,465,029 1,704,531 1,912,818 208,287 6.45 6.70 1.38
Maple Leaf Cement Limited 4,782,000 - - 4,782,000 - - - - - - -
8.16 8.48 4.73
Chemical
Engro Polymer & Chemicals Limited 17,640,721 3,849,500 - 5,361,500 16,128,721 447,183 535,635 88,452 1.81 1.88 1.77
ICI Pakistan Limited 1,183,735 25,550 - 10,900 1,198,385 638,225 808,730 170,505 2.73 2.83 1.30
Lotte Chemical Pakistan Limited 2,784,500 1,000,000 - 3,784,500 - - - - - - -
Sitara Chemical Limited 30,500 - - - 30,500 9,329 9,103 (226) 0.03 0.03 0.14
4.57 4.74 3.21
Commercial Banks
BankIslami Pakistan Limited - 8,750,000 - 834,500 7,915,500 85,692 87,783 2,091 0.30 0.31 0.71
Meezan Bank Limited (an Associate of the Fund) 8,040,597 1,273,000 - 194,500 9,119,097 787,790 867,500 79,710 2.92 3.04 0.71
3.22 3.35 1.42
Engineering
Amreli Steels Limited - 1,335,000 - 90,000 1,245,000 37,249 44,969 7,720 0.15 0.16 0.42
International Industries Limited 932,400 430,000 65,240 405,500 1,022,140 77,928 113,294 35,366 0.38 0.40 0.78
International Steel Limited 2,467,800 400,000 - 2,867,500 300 12 17 5 - - -
K.S.B. Pumps Company Limited 79,900 - - - 79,900 8,070 13,580 5,510 0.05 0.05 0.61
Mughal Iron & Steel Industries Limited - 2,475,500 - 50,000 2,425,500 78,770 99,373 20,603 0.33 0.35 0.96
0.91 0.96 2.77
Fertilizer
Engro Corporation Limited (Note 6.2.3) 9,480,573 410,000 - 1,598,900 8,291,673 2,227,597 2,862,700 635,103 9.65 10.02 1.44
Engro Fertilizers Limited 24,461,700 - - 1,407,500 23,054,200 1,474,777 1,692,870 218,093 5.70 5.93 1.73
15.35 15.95 3.17
Food & Personal Care Products
Al-Shaheer Corporation Limited 60,741 - - - 60,741 765 858 93 - - 0.04
At-Tahur Limited 109,132 - 10,913 - 120,045 2,151 2,515 364 0.01 0.01 0.07
FrieslandCampina Engro Pakistan Limited 17,721 - - 17,721 - - - - - - -
National Foods Limited (Note 6.2.1) 197,100 - 39,420 - 236,520 36,298 52,510 16,212 0.18 0.18 0.16
0.19 0.19 0.27
Glass & Ceramics
Tariq Glass Industries Limited 792,500 175,000 - 659,000 308,500 30,065 33,010 2,945 0.11 0.12 0.42
0.11 0.12 0.42
Investment Banks / Investment
Companies / Securities Companies
Daw ood Hercules Corporation - 86,900 - - 86,900 12,387 13,401 1,014 0.05 0.05 0.02
0.05 0.05 0.02

Percentage in relation to
Paid-up
Unrealised
Carrying Market value Total capital of
Purchases Sales As at gain / Net
As at July 1, Bonus / value as at as at market investee
Name of the investee company during the during the December 31, (loss) as at assets of
2019 Right issue December December value of company
period period 2019 December the
31, 2019 31, 2019 invest- (with face
 Tariq Glass Industries Limited 792,500 175,000 - 659,000 308,500 30,065 33,010 2,945 0.11 0.12 0.42
0.11 0.12 0.42
Investment Banks / Investment
Companies / Securities Companies
Daw ood Hercules Corporation - 86,900 - 4 - 86,900 12,387 13,401 1,014 0.05 0.05 0.02
0.05 0.05 0.02

Percentage in relation to
Paid-up
Unrealised
Carrying Market value Total capital of
Purchases Sales As at gain / Net
As at July 1, Bonus / value as at as at market investee
Name of the investee company during the during the December 31, (loss) as at assets of
2019 Right issue December December value of company
period period 2019 December the
31, 2019 31, 2019 invest- (with face
31, 2019 Fund
ments value of
investment)
-------------------------------Number of shares------------------------------- -------------------(Rupees in '000)---------------------------------------------%-------------------------
Oil & Gas Exploration Companies
Mari Petroleum Company Limited 2,102,838 2,000 202,969 148,640 2,159,167 1,980,896 2,828,725 847,829 9.53 9.91 1.62
Oil & Gas Development Company Limited 20,325,900 2,488,400 - 1,535,000 21,279,300 2,799,316 3,028,470 229,154 10.21 10.61 0.49
Pakistan Oilfields Limited 3,909,136 50,000 - 573,500 3,385,636 1,373,563 1,512,431 138,868 5.10 5.30 1.19
Pakistan Petroleum Limited 16,807,632 2,147,800 2,536,066 4,394,300 17,097,198 2,074,910 2,344,710 269,800 7.90 8.21 0.63
32.74 34.03 3.93
Oil & Gas Marketing Companies
Attock Petroleum Limited 477,734 495,900 - 2,300 971,334 291,556 359,199 67,643 1.21 1.26 0.98
Hascol Petroleum Limited * 2,080,470 13,935,391 - 3,461,000 12,554,861 229,480 337,726 108,246 1.14 1.18 6.31
Pakistan State Oil Company Limited 4,501,752 1,823,700 626,030 2,984,500 3,966,982 575,242 760,232 184,990 2.56 2.66 0.84
Sui Northern Gas Pipelines Limited 14,259,800 1,948,500 - 1,454,000 14,754,300 1,033,704 1,123,835 90,131 3.79 3.94 2.33
Sui Southern Gas Company Limited 755,500 - - - 755,500 15,624 16,258 634 0.05 0.06 0.09
8.75 9.10 10.55
Paper & Board
Cherat Packaging Limited 732,134 - 21,613 516,000 237,747 17,429 28,870 11,441 0.10 0.10 0.56
Packages Limited 2,474,853 20,200 - 651,000 1,844,053 554,556 735,298 180,742 2.48 2.57 2.06
2.58 2.67 2.62
Pharmaceuticals
Abbott Laboratories (Pakistan) Limited 109,350 - - 30,300 79,050 37,520 35,318 (2,202) 0.12 0.12 0.08
AGP Limited 4,963,500 168,500 - 238,500 4,893,500 339,179 486,169 146,990 1.64 1.70 1.75
Glaxosmithkline Consumer Healthcare Limited 358,656 149,200 - - 507,856 110,586 130,224 19,638 0.44 0.46 0.43
Glaxosmithkline Pakistan Limited 5,816 - - - 5,816 554 934 380 - - -
Highnoon Laboratories Limited 798 - - - 798 202 429 227 - - -
The Searle Company Limited 3,651,679 199,900 - 1,190,100 2,661,479 392,690 502,328 109,638 1.69 1.76 1.25
3.89 4.04 3.51
Pow er Generation & Distribution
K-Electric Limited (Note 6.2.1) 186,128,500 6,339,000 - 4,234,500 188,233,000 822,940 822,578 (362) 2.77 2.88 0.68
The Hub Pow er Company Limited 18,904,517 5,205,500 - 2,528,000 21,582,017 1,690,949 2,014,681 323,732 6.79 7.06 1.66
9.56 9.94 2.34
Refinery
Attock Refinery Limited - 25,000 - 25,000 - - - - - - -
National Refinery Limited - 63,800 - 63,800 - - - - - - -
- - -
Technology & Communication
Avanceon Limited 2,115,300 105,000 - 1,139,000 1,081,300 52,026 40,603 (11,423) 0.14 0.14 0.56
Netsol Technologies Limited 987,100 152,500 - - 1,139,600 73,879 75,054 1,175 0.25 0.26 1.27
Pakistan Telecommunication Company Limited 800,000 - - - 800,000 6,616 7,488 872 0.03 0.03 0.02
Systems Limited 655,600 754,000 - 100,000 1,309,600 142,262 162,783 20,521 0.55 0.57 1.06
0.97 1.00 2.91
Textile Composite
Feroze1888 Mills Limited 1,542,500 105,000 - - 1,647,500 165,652 151,570 (14,082) 0.51 0.53 0.44
Kohinoor Textile Mills Limited 672,514 - - 495,500 177,014 4,434 6,916 2,482 0.02 0.02 0.06
Nishat Mills Limited 5,374,700 630,000 - 1,532,600 4,472,100 412,888 474,669 61,781 1.60 1.66 1.27
2.13 2.21 1.77
Textiles & Apparel
Interloop Limited 8,335,000 2,222,500 - 867,000 9,690,500 433,877 562,534 128,657 1.90 1.97 1.11
1.90 1.97 1.11
Vanaspati & Allied Industries
Unity Foods Limited 11,712,846 1,505,000 - 8,519,000 4,698,846 50,308 75,698 25,390 0.26 0.27 0.86
0.26 0.27 0.86
Right Certificates
Oil & Gas Marketing Companies
Hascol Petroleum Limited * - - 9,298,891 9,298,891 - - - - - - -

Total 23,958,589 28,556,729 4,598,140 100

*The right certificates w ere exercised during the period and the shares are included in the investment in Hascol Petroleum Limited above.
6.2.1 All shares have a nominal value of Rs 10 each except for the shares of Thal Limited, Agriauto Industries 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.
 5

6.2.2 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 period ended December 31, 2019, 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 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.

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 period were not
withheld by the investee companies.

As at December 31, 2019, the bonus shares of the Fund withheld by certain companies at the time of declaration of
bonus shares amounted to Rs. 51.258 million (June 30, 2019: Rs. 40.686 million).

6.2.3 Investments include 1,000,000 shares of Engro Corporation Limited, having market value of Rs 345.25 million as at
December 31, 2019 (June 30, 2019: Rs. 265.60 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.

7. PAYABLE TO THE SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN

In accordance with the NBFC Regulations, a Collective Investment Scheme (CIS) is required to pay annual fee to the
Securities and Exchange Commission of Pakistan (SECP).

Effective from July 1, 2019, the SECP vide SRO No. 685(I)/2019 dated June 28, 2019, revised the rate of annual fee
to 0.02% of net assets, applicable on all categories of CISs. Previously, the rate of annual fee applicable to equity
funds was 0.095%. Accordingly, the Fund has charged SECP Fee at the rate of 0.02% of net assets during the current
period.
December 31, June 30,
2019 2019
(Unaudited) (Audited)
8. ACCRUED EXPENSES AND OTHER LIABILITIES Note (Rupees in '000)

Provision for Sindh Workers' Welfare Fund (SWWF) 8.1 436,658 340,482
Charity payable 41,804 30,781
Withholding tax payable 922 922
Capital gain tax payable 7,237 4,237
Provision for Federal Excise Duty and related Sindh Sales Tax
on management fee 8.2 231,867 231,867
Provision for Federal Excise Duty and related Sindh Sales Tax
on sales load 8.2 32,607 32,607
Auditors' remuneration 392 480
Zakat payable 102 399
Printing expenses payable 483 483
Shariah advisory fee payable 2,254 2,245
Brokerage payable 11,351 9,357
765,677 653,860
 6

8.1 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 on a prudent basis 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 condensed interim financial statements of the Fund for the
period from May 21, 2015 to December 31, 2019, the net asset value of the Fund as at December 31, 2019 would
have been higher by Re. 0.85 per unit (June 30, 2019: Re 0.63 per unit).

8.2 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 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.

With effect from 01 July 2016, FED on services provided or rendered by non-banking financial institutions dealing in
services which are subject to provincial sales tax has been withdrawn by the Finance Act, 2016.

During the year ended 30 June 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
condensed interim 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 0.51 (June 30, 2019:
Re 0.49) per unit.

9. CONTINGENCIES AND COMMITMENTS

There were no contingencies and commitments outstanding as at December 31, 2019 and June 30, 2019.

10. TRANSACTIONS WITH CONNECTED PERSONS / RELATED PARTIES

Connected persons include Al Meezan Investment Management Limited being the Management Company, the Central
Depository Company of Pakistan Limited being the Trustee, Meezan Bank Limited being the holding company of the
Management Company, Directors and executives of the Management Company, other Funds under the common
management of 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 unitholders holding 10 percent or more of the Fund's net assets.

Transactions with connected persons are in the normal course of business, at contracted rates and terms determined
in accordance with market rates.

Remuneration payable to the Management Company and the Trustee is determined in accordance with the provisions
of the NBFC Rules, the NBFC Regulations and the Trust Deed respectively.
 7

Details of transactions with connected persons and balances with them are as follows:

December 31, June 30,

2019 2019
(Unaudited) (Audited)
(Rupees in '000)
Al Meezan Investment Management Limited - the Management Company
Remuneration payable 49,670 43,986
Sindh Sales Tax on management fee payable 6,456 5,718
Sales load payable 1,709 221
Sindh Sales Tax and on sales load payable 222 29
Allocated expenses 2,483 2,199
Selling and marketing expense payable 26,656 27,811
Investment of nil units (June 30, 2019: 10,011,729 units) - 479,797

Meezan Bank Limited

Balance with bank 252,526 113,831
Profit receivable on saving accounts 3,417 508
Sales load payable 639 119
Sindh Sales Tax on sales load payable 83 16
Investment in 9,119,097 shares (June 30, 2019: 8,040,597 shares) 867,500 700,818
Investment of 12,475,049 units (June 30, 2019: 12,475,049 units) 718,877 597,848

Central Depository Company of Pakistan Limited - the Trustee

Trustee fee payable 2,556 2,282
Sindh Sales Tax on trustee fee payable 332 297
Security deposit 100 100

Al Meezan Investment Management Limited - Employees' Gratuity Fund

Investment of 180,189 units (June 30, 2019: 180,189 units) 10,383 8,635

Meezan Financial Planning Fund of Funds

- Aggressive Allocation Plan
Investment of 4,473,517 units (June 30, 2019: 5,706,435 units) 257,787 273,472

Meezan Financial Planning Fund of Funds

- Moderate Allocation Plan
Investment of 1,464,120 units (June 30, 2019: 2,116,314 units) 84,370 101,421

Meezan Financial Planning Fund of Funds

- Conservative Allocation Plan
Investment of 874,473 units (June 30, 2019: 1,149,027 units) 50,392 55,065

Meezan Financial Planning Fund of Funds - MAAP - I

Investment: 404,447 units (June 30, 2019: 171,373 units) 23,306 8,213

Meezan Strategic Allocation Fund - MSAP - I

Investment of 3,094,372 units (June 30, 2019: 3,358,170 units) 178,314 160,935

Meezan Strategic Allocation Fund - MSAP - II

Investment of 2,519,880 units (June 30, 2019: 2,983,781 units) 145,209 142,993

Meezan Strategic Allocation Fund - MSAP - III

Investment of 10,058,402 units (June 30, 2019: 10,949,083 units) 579,617 524,718

Meezan Strategic Allocation Fund - MSAP - IV

Investment of 9,851,082 units (June 30, 2019: 12,489,103 units) 567,671 598,522

Meezan Strategic Allocation Fund - MSAP - V

Investment of 2,438,618 units (June 30, 2019: 3,635,008 units) 140,526 174,202

Directors and executives of the Management Company

Investment of 11,376,434 units (June 30, 2019: 1,016,776 units) 655,569 48,727
 8

Six months period ended

December 31,
2019 2018
Transactions during the period (Unaudited)
(Rupees in '000)
Al Meezan Investment Management Limited - the Management Company
Remuneration for the period 246,417 373,735
Sindh Sales Tax on management fee 32,034 48,586
Allocated expenses 12,321 18,687
Selling and marketing expense 49,283 74,747
Units issued: 1,805,947 units (December 31, 2018: 2,571,934 units) 79,259 166,000
Units redeemed: 11,817,676 units (December 31, 2018: nil units) 530,178 -

Meezan Bank Limited

Profit on saving accounts 10,099 1,423
Shares purchased: 1,273,000 shares (December 31, 2018: 9,220,000 shares) 103,828 810,575
Shares sold: 194,500 shares (December 31, 2018: 2,838,000 shares) 15,661 252,950
Bonus issue: nil shares (December 31, 2018: 167,557 shares) - -
Dividend income 17,081 2,513

Central Depository Company of Pakistan Limited - the Trustee

Trustee fee 12,824 19,191
Sindh Sales Tax on trustee fee 1,667 2,495
CDS charges 364 353

Meezan Financial Planning Fund of Funds

- Aggressive Allocation Plan
Units issued: 214,233 units (December 31, 2018: 495,544 units) 10,519 29,730
Units redeemed: 1,447,151 units (December 31, 2018: 376,529 units) 69,000 22,500

Meezan Financial Planning Fund of Funds

- Moderate Allocation Plan
Units issued: 81,501 units (December 31, 2018: 204,757 units) 3,657 11,768
Units redeemed: 733,695 units (December 31, 2018: 506,703 units) 34,500 30,500

Meezan Financial Planning Fund of Funds

- Conservative Allocation Plan
Units issued: 81,177 units (December 31, 2018: 227,282 units) 3,643 13,344
Units redeemed: 355,731 units (December 31, 2018: 274,400 units) 16,625 16,550

Meezan Financial Planning Fund of Funds - MAAP - I

Units issued: 710,176 units (December 31, 2018: nil units) 39,000 -
Units redeemed: 477,102 units (December 31, 2018: nil units) 24,170 -

Meezan Financial Planning Fund of Funds - MAAP - IV

Units redeemed: nil units (December 31, 2018: 3,990,160 units) - 249,454

Meezan Strategic Allocation Fund - MSAP - I

Units issued: 2,561,573 units (December 31, 2018: 3,444,947 units) 125,000 207,000
Units redeemed: 2,825,371 units (December 31, 2018: 15,390,424 units) 128,060 934,415

Meezan Strategic Allocation Fund - MSAP - II

Units issued: nil units (December 31, 2018: 735,631 units) - 42,000
Units redeemed: 463,901 units (December 31, 2018: 1,618,999 units) 22,810 99,010

Meezan Strategic Allocation Fund - MSAP - III

Units issued: 1,115,853 units (December 31, 2018: 1,015,919 units) 51,600 58,000
Units redeemed: 2,006,534 units (December 31, 2018: 1,931,954 units) 95,449 117,400

Meezan Strategic Allocation Fund - MSAP - IV

Units issued: 808,964 units (December 31, 2018: 1,208,617 units) 45,000 69,000
Units redeemed: 3,446,985 units (December 31, 2018: 3,354,237 units) 156,890 204,500
 9

Six months period ended

December 31,
2019 2018
(Unaudited)
(Rupees in '000)
Meezan Strategic Allocation Fund - MSAP - V
Units issued: nil units (December 31, 2018: 227,685 units) - 13,000
Units redeemed: 1,196,390 units (December 31, 2018: 841,167 shares) 52,340 50,941

Directors and executives of the Management Company

Units issued: 10,535,651 units (December 31, 2018: 435,150 units) 479,978 26,958
Units redeemed: 205,299 units (December 31, 2018: 98,023 units) 9,995 5,809

11. FAIR VALUE OF FINANCIAL INSTRUMENTS

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 tradeable in an open market are revalued at 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.

10.1 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: Fair value measurements using quoted price (unadjusted) in an active market for identical assets or
liabilities.

- Level 2: Fair value measurements using inputs other than quoted prices included within level 1 that are
observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

- Level 3: Fair value measurement using inputs for the asset or liability that are not based on observable market
data (i.e. unobservable inputs).

As at December 31, 2019 and June 30, 2019, the Fund held the following financial instruments measured at fair value:

As at December 31, 2019

Level 1 Level 2 Level 3 Total
ASSETS --------------------------------------- (Rupees in '000) ---------------------------------------

Financial assets 'at fair value through profit or loss'

Shares of listed companies - 'ordinary shares' 28,556,729 - - 28,556,729

As at June 30, 2019

Level 1 Level 2 Level 3 Total
ASSETS --------------------------------------- (Rupees in '000) ---------------------------------------

Financial assets 'at fair value through profit or loss'

Shares of listed companies - 'ordinary shares' 25,014,329 - - 25,014,329

12. ALLOCATED EXPENSES

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).
 10

Until June 19, 2019 there was a maximum cap of 0.1% of the average annual net assets of the scheme or actual
whichever is less, for allocation of such expense to the Fund. However, the SECP vide its SRO 639 dated June 20,
2019 removed the maximum cap of 0.1%.

The management company based on its own discretion has currently fixed a maximum capping of 0.1% of the average
annual net assets of the scheme for allocation of such expenses to the Fund.

13. TOTAL EXPENSE RATIO

The Total Expense Ratio (TER) of the Fund for the half year ended December 31, 2019 is 3.98% which include 1.09%
representing government levy, Sindh Workers' Welfare Fund and SECP fee.

14. SELLING AND MARKETING EXPENSES

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) initially for a period of three years (i.e from January 1, 2017 till
December 31, 2019). The maximum cap of selling and marketing expense was 0.4% per annum of the net assets of
the Fund or actual expenses whichever is lower.

During the current period, the SECP through its circular 11 dated July 5, 2019 has revised the conditions for charging
of selling and marketing expenses to a Fund. As per the revised guidelines, the maximum cap of 0.4% per annum has
been lifted and now the asset management company is required to set a maximum limit for charging of such expense
to the Fund and the same should be approved by the Board as part of annual plan. Furthermore, the time limit of three
years has also been removed in the revised conditions.

Accordingly, the management company based on its own discretion has currently determined a capping of 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.

15. TAXATION

The Fund's income is exempt from income tax as per clause (99) of part I of the Second Schedule to the Income Tax
Ordinance, 2001 subject to the condition that not less than 90 percent of the accounting income for the year as
reduced by capital gains, whether realised or unrealised, is distributed amongst the unitholders. Furthermore, as per
regulation 63 of the NBFC Regulations, the Fund is required to distribute atleast 90 percent of the net accounting
income other than capital gains to the unit holders.The Fund has not recorded any tax liability in respect of income
relating to the current period as the Management Company intends to distribute at least 90 percent of the Fund's
accounting income for the year ending June 30, 2020 as reduced by capital gains (whether realised or unrealised) to
its unit holders.

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.

16. GENERAL

16.1 Figures have been rounded off to the nearest thousand rupees.

16.2 Corresponding figures have been reclassified and rearranged in these condensed interim financial statements,
wherever necessary, for the purpose of better presentation. No significant rearrangements or reclassifications were
made in these condensed interim financial statements.

17. DATE OF AUTHORISATION

February 10, 2020
These condensed interim financial statements were authorised for issue on ___________ by the Board of Directors of
the Management Company.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
 Hyderabad Branch

Al Meezan
Mutual Fund

AL-MEEZAN MUTUAL
FUND (AMMF)
QUTB SHAH TOMBS
Al Meezan Mutual Fund aims to optimize the total (HYDERABAD)
investment returns in the form of capital gains and
dividend income, through prudent investment
management.

REACHING NEW
MILESTONES IN THE
SECOND BIGGEST
CITY OF SINDH
 Hyderabad Branch

Al Meezan
Mutual Fund

AL-MEEZAN MUTUAL
FUND (AMMF)
QUTB SHAH TOMBS
Al Meezan Mutual Fund aims to optimize the total (HYDERABAD)
investment returns in the form of capital gains and
dividend income, through prudent investment
management.

REACHING NEW
MILESTONES IN THE
SECOND BIGGEST
CITY OF SINDH
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. Mohammad Shoaib, CFA Chief Executive Officer
Mr. Muhammad Abdullah Ahmed Nominee Director - MBL
Mr. Mohammad Furquan R Kidwai Independent Director
Mr. ljaz Farooq Nominee Director - MBL
Mr. Moin M. Fudda Independent Director
Ms. Saima Kamila Khan Independent Director
Mr. Arshad Majeed Nominee Director - MBL
Mr. Naeem Abdul Sattar Nominee Director - PKIC
Syed Amir Ali Zaidi Nominee Director – PKIC

CFO & COMPANY SECRETARY OF THE MANAGEMENT COMPANY

Syed Owais Wasti

AUDIT COMMITTEE
Mr. Moin M. Fudda Chairman
Mr. Arshad Majeed Member
Mr. Naeem Abdul Sattar Member

RISK MANAGEMENT COMMITTEE

Mr. Muhammad Abdullah Ahmed Chairman
Syed Amir Ali Zaidi Member
Mr. Naeem Abdul Sattar Member

HUMAN RESOURSE & REMUNERATION COMMITTEE

Mr. Moin M. Fudda Chairman
Mr. Ariful Islam Member
Mr. Naeem Abdul Sattar 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 Islamic Bank Limited
Askari Bank Limited - Islamic Banking Meezan Bank Limited
Bank Al Habib Limited - Islamic Banking National Bank of Pakistan - Islamic Banking
Bank Alfalah Limited Sindh Bank Limited
Bank Islami Pakistan Limited UBL Ameen - Islamic Banking
Dubai Islamic Bank Pakistan Limited
Faysal Bank Limited - 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:

TRANSFER AGENT
Meezan Bank Limited
Meezan House
C-25, Estate Avenue, SITE, Karachi.
Phone: 38103538 Fax: 36406017
Website: www.meezanbank.com

DISTRIBUTORS
Al Meezan Investment Management Limited
Meezan Bank Limited
Standard Chartered Bank (Pakistan) Limited
AL MEEZAN MUTUAL FUND
CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES
AS AT DECEMBER 31, 2019

December 31, June 30,

2019 2019
(Unaudited) (Audited)
Note (Rupees in '000)
Assets
Balances with banks 5 312,969 271,162
Investments 6 4,878,130 4,614,607
Receivable against sale of investments 34,015 20,993
Receivable against conversion of units 3,916 13,534
Dividend receivable 1,293 25,200
Deposits, prepayments, profit accrued and other receivables 7,035 8,444
Total assets 5,237,358 4,953,940

Liabilities
Payable to Al Meezan Investment Management Limited - the Management Company 14,802 14,897
Payable to Central Depository Company of Pakistan Limited - the Trustee 567 552
Payable to the Securities and Exchange Commission of Pakistan 7 438 5,952
Payable to Meezan Bank Limited 54 23
Payable against purchase of investments 2,145 3,468
Payable against redemption and conversion of units 37,155 45,466
Accrued expenses and other liabilities 9 140,627 110,859
Dividend payable 4,917 4,917
Total liabilities 200,705 186,134

Net assets 5,036,653 4,767,806

Contingencies and commitments 8

Unit holders’ fund (as per statement attached) 5,036,653 4,767,806

(Number of units)

Number of units in issue 312,521,435 357,035,000

(Rupees)

Net asset value per unit 16.1162 13.3539

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
AL MEEZAN MUTUAL FUND
CONDENSED INTERIM INCOME STATEMENT (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

Six months period ended Quarter ended

December 31, December 31,
2019 2018 2019 2018
Note (Rupees in '000) (Rupees in '000)
Income
Net realised (loss) / gain on sale of investments (28,755) (84,949) 56,039 (69,994)
Dividend income 133,398 178,016 75,770 102,149
Profit on saving accounts with banks 13,941 15,452 7,685 8,305
118,584 108,519 139,495 40,460
Net unrealised appreciation / (diminution) on
re-measurement of investments classified as
'financial assets at fair value through profit or loss' 6.1 756,597 (895,753) 1,003,051 (661,197)
Total income / (loss) 875,181 (787,234) 1,142,545 (620,737)

Expenses
Remuneration of Al Meezan Investment Management
Limited - the Management Company 42,853 68,169 22,629 33,345
Sindh Sales Tax on remuneration of the Management Company 5,571 8,862 2,942 4,302
Allocated expenses 11 2,143 3,408 1,132 1,667
Remuneration of Central Depository Company of Pakistan
Limited - the Trustee 2,646 3,913 1,383 1,920
Sindh Sales Tax on remuneration of the Trustee 344 509 180 250
Annual fee to the Securities and Exchange Commission of
Pakistan 7 438 3,238 226 1,584
Auditors' remuneration 492 472 300 198
Charity expense 3,662 2,581 2,066 1,541
Fees and subscription 282 435 121 215
Brokerage expense 3,624 1,984 3,227 1,326
Selling and marketing expenses 13 8,571 13,634 4,526 6,669
Provision for Sindh Workers' Welfare Fund (SWWF) 9.1 16,081 - 16,081 -
Bank and settlement charges 509 383 345 177
Total expenses 87,216 107,588 55,157 53,194

Net income / (loss) for the period before taxation 787,965 (894,822) 1,087,388 (673,931)

Taxation 14 - - - -

Net income / (loss) for the period after taxation 787,965 (894,822) 1,087,388 (673,931)

Allocation of net income for the period

Net income for the period after taxation 787,965 -
Income already paid on units redeemed (13,936) -
774,029 -

Accounting income available for distribution

- Relating to capital gains 727,842 -
- Excluding capital gains 46,187 -
774,029 -

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
AL MEEZAN MUTUAL FUND
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

Six months period ended, Quarter ended,

December 31, December 31,
2019 2018 2019 2018
(Rupees in '000) (Rupees in '000)

Net income / (loss) for the period after taxation 787,965 (894,822) 1,087,388 (673,931)

Other comprehensive income / (loss) for the period - - - -

Total comprehensive income / (loss) for the period 787,965 (894,822) 1,087,388 (673,931)

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
AL MEEZAN MUTUAL FUND
CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUND (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

Six months period ended December 31, 2019 Six months period ended December 31, 2018
Unrealised Unrealised
(Accumu- appreciation/ appreciation/
Undistri-
Capital lated loss) / (diminution) Capital (diminution)
Total buted Total
Value Undistributed 'available for Value 'available for
income
income sale' sale'
investments investments
---------------- Rupees in 000----------------- ---------------- Rupees in 000-----------------
Net assets at the beginning of the period
as previously reported (Audited) 4,877,433 (109,627) - 4,767,806 5,302,941 1,361,518 199,551 6,864,010
Change in accounting policy - - - - - 199,551 (199,551) -
Net assets at the beginning of the period 4,877,433 (109,627) - 4,767,806 5,302,941 1,561,069 - 6,864,010

Issuance of 130,987,950 units (2018: 53,214,548 units)

- Capital value (at net asset value per unit
at the beginning of the period) 1,749,200 - - 1,749,200 939,678 - - 939,678
- Element of income / (loss) 115,907 - - 115,907 (26,731) - - (26,731)
Total proceeds on issuance of units 1,865,107 - - 1,865,107 912,947 - - 912,947

Redemption of 175,501,515 units (2018: 47,842,113 units)

- Capital value (at net asset value per unit
at the beginning of the period) 2,343,630 - - 2,343,630 844,810 - - 844,810
- Element of loss / (income) 26,660 13,936 - 40,596 (39,890) - - (39,890)
Total payments on redemption of units 2,370,289 13,936 - 2,384,225 804,920 - - 804,920

Total comprehensive income / (loss) for the period - 787,965 - 787,965 - (894,822) - (894,822)
Distribution during the period - - - - - - - -
Net income / (loss) for the period less distribution - 787,965 - 787,965 - (894,822) - (894,822)

Net assets at the end of the period 4,372,251 664,402 - 5,036,653 5,410,968 666,247 - 6,077,215

(Accumulated loss) / undistributed income brought

forward (as previously reported - Audited)
- Realised income 1,197,928 2,209,183
- Unrealised loss (1,307,555) (847,665)
(109,627) 1,361,518
Change in accounting policy - 199,551
(Accumulated loss) / undistributed income
brought forward (109,627) 1,561,069

Accounting income available for distribution

- Relating to capital gains 727,842 -
- Excluding capital gains 46,187 -
774,029 -
Net loss for the period after taxation - (894,822)
Distribution during the period - -
Undistributed income carried forward 664,402 666,247

Undistributed income carried forward

- Realised (loss) / income (92,195) 1,562,000
- Unrealised income / (loss) 756,597 (895,753)
664,402 666,247

(Rupees) (Rupees)
Net assets value per unit at the beginning of the period 13.3539 17.6583
Net assets value per unit at the end of the period 16.1162 15.4211

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
AL MEEZAN MUTUAL FUND
CONDENSED INTERIM CASH FLOW STATEMENT (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

Six months period ended

December 31,
2019 2018
(Rupees in '000)
CASH FLOWS FROM OPERATING ACTIVITIES

Net income / (loss) for the period before taxation 787,965 (894,822)

Adjustments for:
Net unrealised appreciation / (diminution) on re-measurement of investments
classified as 'financial assets at fair value through profit or loss' (756,597) 895,753
31,368 931

Decrease / (increase) in assets

Investments 493,074 (163,587)
Receivable against sale of investments (13,022) (8,903)
Dividend receivable 23,907 (11,802)
Deposits, prepayments, profit accrued and other receivables 1,409 (2,701)
505,368 (186,993)
Increase / (decrease) in liabilities
Payable to Al Meezan Investment Management Limited - the Management Company (95) (6,466)
Payable to Central Depository Company of Pakistan Limited - the Trustee 15 699
Payable to Meezan Bank Limited 31 (138)
Payable to the Securities and Exchange Commission of Pakistan (5,514) (3,998)
Payable against purchase of investments (1,323) -
Accrued expenses and other liabilities 29,768 4,688
22,882 (5,215)

Net cash generated from / (used in) operating activities 559,618 (191,277)

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts against issuance and conversion of units 1,874,725 916,480

Payment against redemption and conversion of units (2,392,536) (807,703)
Net cash (used in) / generated from financing activities (517,811) 108,777

Net increase / (decrease) in cash and cash equivalents during the period 41,807 (82,500)
Cash and cash equivalents at the beginning of the period 271,162 440,313

Cash and cash equivalents at the end of the period 312,969 357,813

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
AL MEEZAN MUTUAL FUND
NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

1. LEGAL STATUS AND NATURE OF BUSINESS

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 the 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 and Notified Entities Regulations (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 unitholders 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 unitholders 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.

1.4 The Management Company has been assigned a quality rating of AM1 by VIS Credit Rating Company Limited dated
December 31, 2019 (2018: AM1 dated December 28, 2018) and by PACRA dated December 28, 2019. The rating
reflects the Company’s experienced management team, structured investment process and sound quality of systems
and processes.

1.5 Title of the assets of the Fund is held in the name of CDC as a Trustee of the Fund.

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 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.

3. BASIS OF PREPARATION

3.1 STATEMENT OF COMPLIANCE

These condensed interim financial statements have been prepared in accordance with the accounting and reporting
standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards applicable
in Pakistan for interim financial reporting comprise of:

- International Accounting Standard (IAS) 34, Interim Financial Reporting, 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 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, (the NBFC Regulations) and the requirements of
the Trust Deed.

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 with the
requirements of IAS 34, 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.
 2

The disclosures made in these condensed interim financial statements have, however, been limited based on the
requirements of the International Accounting Standard 34: 'Interim Financial Reporting'. These condensed interim
financial statements do not include all the information and disclosures required in a full set of financial statements and
should be read in conjunction with the annual published audited financial statements of the Fund for the year ended
June 30, 2019.

These condensed interim financial statements are unaudited. However, a limited scope review has been performed by
the statutory auditors. In compliance with Schedule V of the NBFC Regulations, the directors of the Management
Company declare that these condensed interim financial statements give a true and fair view of the state of affairs of
the Fund as at December 31, 2019.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, JUDGMENTS AND RISK

MANAGEMENT

4.1 The accounting policies adopted and the methods of computation of balances used in the preparation of these
condensed interim financial statements are the same as those applied in the preparation of the annual financial
statements of the Fund for the year ended June 30, 2019.

4.2 The preparation of these condensed interim financial statements in conformity with accounting and reporting standards
as applicable in Pakistan require management to make estimates, assumptions and use judgments that affect the
application of policies and reported amounts of assets, liabilities, income and expenses. Estimates, assumptions and
judgments are continually evaluated and are based on historical experience and other factors, including reasonable
expectations of future events. Revisions to accounting estimates are recognised prospectively commencing from the
period of revision. In preparing the condensed interim financial statements, the significant judgments made by
management in applying the Fund’s accounting policies and the key sources of estimation and uncertainty were the
same as those applied to the financial statements as at and for the year ended June 30, 2019. The Fund’s financial
risk management objectives and policies are consistent with those disclosed in the annual financial statements of the
Fund for the year ended June 30, 2019.

4.3 Amendments to published accounting and reporting standards that are effective in the current period

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, 2019. However, these do not have any significant impact on the Fund's
operations and, therefore, have not been detailed in these condensed interim financial statements.

4.4 Standards, interpretations and amendments to published accounting and reporting standards that are not yet
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, 2020
- IAS 8 - 'Accounting policies, change in accounting
estimates and errors' (amendment) January 1, 2020

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 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, 2020. However, these do not have any significant
impact on the Fund's operations and, therefore, have not been detailed in these condensed interim financial
statements.

December 31, June 30,

2019 2019
(Unaudited) (Audited)
5. BALANCES WITH BANKS Note (Rupees in '000)

In saving accounts 5.1 300,618 263,605

In current accounts 12,351 7,557
312,969 271,162

5.1 The balance in saving accounts have an expected profit ranging from 3.00% to 13.50% per annum (June 30, 2019:
3.32% to 12.5% per annum).
 3

December 31, June 30,

2019 2019
(Unaudited) (Audited)
6. INVESTMENTS Note (Rupees in '000)

Shares of listed companies - ordinary shares 6.1 4,878,130 4,614,607

4,878,130 4,614,607

6.1 Investments in equity securities - listed

Percentage in relation to
Unrealised
Carrying Market appreciation/ Paid-up capital
Purchases As at Market
As at July 1, Bonus / right Sales during value as at Value as at (diminution) of investee
during the December 31, Net assets value of
Name of the investee company 2019 shares the period December December as at company (with
period 2019 of the fund total
31, 2019 31, 2019 December 31, face value of
investment
2019 investment)

----------------------------(Number of shares)--------------------------------------------------------(Rupees in '000)---------------------------------------------------% ------------------------

Sectors / companies

Automobile Assembler
Ghandhara Industries Limited 168,700 - - 166,500 2,200 192 293 101 0.01 - 0.01
Honda Atlas Cars (Pakistan) Limited - 6,300 - - 6,300 1,405 1,379 (26) 0.03 0.03 -
Indus Motors Company Limited - 35,640 - - 35,640 43,211 41,402 (1,809) 0.82 0.85 0.05
Millat Tractors Limited 75,750 5,000 6,075 37,150 49,675 37,924 34,992 (2,932) 0.69 0.72 0.10
1.55 1.59 0.16
Automobile Parts and Accessories
Agriauto Industries Limited (Note 6.1.1) - 75,000 - - 75,000 15,755 15,000 (755) 0.30 0.31 0.26
Ghandhara Nissan Limited 3,163 - - 3,163 - - - - - - -
0.30 0.31 0.26
Cement
Cherat Cement Company Limited - 500,000 10,000 275,000 235,000 9,498 12,467 2,969 0.25 0.26 0.12
DG Khan Cement Company Limited 348,405 313,500 - 661,905 - - - - - - -
Fauji Cement Company Limited - 656,500 - 656,500 - - - - - - -
Kohat Cement Company Limited 730,520 - - 97,500 633,020 33,253 48,996 15,743 0.97 1.00 0.32
Lucky Cement Company Limited 964,067 230,000 - 335,900 858,167 330,025 367,639 37,614 7.30 7.54 0.27
Maple Leaf Cement Company Limited 425,312 - - 425,000 312 11 13 2 - - -
Pioneer Cement Company Limited 7,800 - - 7,800 - - - - - - -
8.52 8.80 0.71
Commercial Banks
Bank Islami Pakistan Limited - 1,024,500 - 100,000 924,500 10,860 10,253 (607) 0.20 0.21 0.08
Meezan Bank Limited 898,050 591,000 - 125,000 1,364,050 118,796 129,762 10,966 2.58 2.66 0.11
2.78 2.87 0.19
Chemicals
Engro Polymer & Chemicals Limited 1,365,541 1,900,000 1,795,500 1,470,041 42,532 48,820 6,288 0.97 1.00 0.16
ICI Pakistan Limited 231,679 2,000 350 233,329 124,072 157,462 33,390 3.13 3.23 0.25
Sitara Chemical Limited 57,000 - - 57,000 17,435 17,012 (423) 0.34 0.35 0.27
4.43 4.58 0.68
Engineering
Amreli Steels Limited - 250,000 - 100,000 150,000 4,499 5,418 919 0.11 0.11 0.05
International Industries Limited - 451,000 - - 451,000 44,143 49,989 5,846 0.99 1.02 0.34
International Steel Limited - 150,000 - 150,000 - - - - - - -
Mughal Iron & Steels Industries Limited - 151,000 - 50,000 101,000 3,328 4,138 810 0.08 0.08 0.04
1.18 1.22 0.43
Fertilizer
Dawood Hercules Corporation Limited - 50,000 - - 50,000 6,794 7,711 917 0.15 0.16 0.01
Engro Corporation Limited (Note 6.1.2) 1,846,890 256,900 - 524,500 1,579,290 435,808 545,250 109,442 10.83 11.18 0.27
Engro Fertilizers Limited 3,976,000 444,000 - 1,467,000 2,953,000 191,873 216,839 24,966 4.31 4.45 0.22
15.28 15.78 0.50
Food and Personal Care Products
Al-Shaheer Corporation Limited (Note 6.1.3) 12,230 - - 12,230 154 173 19 - - 0.01
National Foods Limited (Note 6.1.1) 4,600 - 820 500 4,920 755 1,092 337 0.02 0.02 0.01
0.02 0.02 0.02
Glass and Ceramics
Tariq Glass Industries Limited 279,700 - - 276,500 3,200 245 342 97 0.01 0.01 -

Percentage in relation to
Unrealised
Carrying Market appreciation/ Paid-up capital
Purchases As at Market
As at July 1, Bonus / right Sales during value as at Value as at (diminution) of investee
during the December 31, Net assets value of
Name of the investee company 2019 shares the period December December as at company (with
period 2019 of the fund total
31, 2019 31, 2019 December 31, face value of
investment
2019 investment)

----------------------------(Number of shares)--------------------------------------------------------(Rupees in '000)---------------------------------------------------% ------------------------

 National Foods Limited (Note 6.1.1) 4,600 - 820 500 4,920 755 1,092 337 0.02 0.02 0.01
0.02 0.02 0.02
Glass and Ceramics
Tariq Glass Industries Limited 279,700 - - 276,500 3,200 245 342 97 0.01 0.01 -
4

Percentage in relation to
Unrealised
Carrying Market appreciation/ Paid-up capital
Purchases As at Market
As at July 1, Bonus / right Sales during value as at Value as at (diminution) of investee
during the December 31, Net assets value of
Name of the investee company 2019 shares the period December December as at company (with
period 2019 of the fund total
31, 2019 31, 2019 December 31, face value of
investment
2019 investment)

----------------------------(Number of shares)--------------------------------------------------------(Rupees in '000)---------------------------------------------------% ------------------------

Oil and Gas Exploration Companies

Mari Petroleum Company Limited (Note 6.1.3) 365,310 - 34,631 41,020 358,921 329,336 470,222 140,886 9.34 9.64 0.27
Oil and Gas Development Company Limited 3,879,800 476,500 - 806,200 3,550,100 467,126 505,250 38,124 10.03 10.36 1.25
Pakistan Oilfields Limited 661,629 - - 65,300 596,329 242,044 266,392 24,348 5.29 5.46 0.21
Pakistan Petroleum Limited 3,127,022 100,000 486,404 1,140,000 2,573,426 310,064 352,920 42,856 7.01 7.23 0.09
31.66 32.69 1.82
Oil & Gas Marketing Companies
Attock Petroleum Limited 105,138 55,000 - 6,000 154,138 45,528 57,000 11,472 1.13 1.17 0.15
Hascol Petroleum Limited (Note 6.1.3) 205,757 1,232,000 - 500,000 937,757 47,821 68,605 20,784 1.36 1.41 0.47
Pakistan State Oil Company Limited (Note 6.1.3) 1,436,907 491,500 206,381 1,359,600 775,188 118,445 148,557 30,112 2.95 3.05 0.17
Sui Northern Gas Pipelines Limited 3,411,500 625,000 - 1,080,500 2,956,000 208,273 225,159 16,886 4.47 4.62 0.47
9.91 10.25 1.26
Paper and Board
Cherat Packaging Limited 248,846 - 11,334 135,500 124,680 9,140 15,140 6,000 0.30 0.31 0.29
Packages Limited 447,428 - - 152,500 294,928 88,644 117,600 28,956 2.33 2.41 0.33
2.64 2.72 0.62
Pharmaceuticals
Abbott Laboratories Pakistan Limited 5,150 - - 5,150 - - - - - - -
AGP Limited 1,205,250 50,000 - 56,500 1,198,750 83,424 119,096 35,672 2.36 2.44 0.43
GlaxoSmithKline Consumer Healthcare 208,000 5,800 - 1,600 212,200 41,484 54,412 12,928 1.08 1.12 0.18
GlaxoSmithKline Pakistan Limited - 10,000 - - 10,000 1,552 1,606 54 0.03 0.03 -
Highnoon Laboratories Limited (Note 6.1.3) 1,592 - - - 1,592 403 855 452 0.02 0.02 0.01
The Searle Company Limited (Note 6.1.3) 419,248 25,000 - 173,000 271,248 39,679 51,195 11,516 1.02 1.05 0.13
4.51 4.66 0.75
Power Generation and Distribution
K-Electric Limited (Note 6.1.1) 30,513,500 6,915,500 - 6,181,500 31,247,500 136,927 136,552 (375) 2.71 2.80 0.11
The Hub Power Company Limited 3,040,816 1,341,500 - 480,000 3,902,316 302,684 364,281 61,597 7.23 7.47 0.30
9.94 10.27 0.41
Technology and Communication
Avanceon Limited 208,400 - - 208,000 400 20 15 (5) - - -
Systems Limited 173,250 100,000 - 175,000 98,250 10,273 12,212 1,939 0.24 0.25 0.01
0.24 0.25 0.01
Textile Composite
Nishat Mills Limited 629,400 200,000 - 583,000 246,400 23,594 26,153 2,559 0.52 0.54 0.07

Textile Weaving
Feroze1888 Mills Limited 443,000 - - - 443,000 44,685 40,756 (3,929) 0.81 0.84 0.12

Textiles and Apparel

Interloop Limited 2,133,000 69,000 - 2,000 2,200,000 97,819 127,710 29,891 2.54 2.62 0.01

Vanaspati and Allied Industries

Unity Foods Limited 1,159,845 500,000 - 1,659,845 - - - - - - -

Rights Certificates
Cement
Maple Leaf Cement Company Limited* - - 265 265 - - - - - - -

Oil And Gas Marketing Companies

Hascol Petroleum Limited* - - 1,612,618 1,612,618 - - - - - - -

Total 4,121,533 4,878,130 756,597 100

6.1.1 All shares have a nominal value of Rs 10 each except for the shares of K-Electric Limited which have a nominal value
of Rs 3.5 each and Agriauto Industries Limited and National Foods Limited which have a nominal value of Rs 5 each.

6.1.2 Investments include 150,000 shares (June 30, 2019: 150,000 shares) of Engro Corporation Limited, having market
value of Rs 51.7875 million (June 30, 2019: Rs 39.84 million) as at December 31, 2019, which have been pledged with
National Clearing Company of Pakistan for guaranteeing settlement of Fund's trades in accordance with Circular 11
dated October 23, 2007 by SECP.
 5

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 period ended December 31, 2019, 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 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.

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 period were not
withheld by the investee companies.

As at December 31, 2019, the bonus shares of the Fund withheld by certain companies at the time of declaration of
bonus shares amounted to Rs. 7.804 million (June 30, 2019: Rs. 7.132 million).

7 PAYABLE TO THE SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN (SECP)

In accordance with the NBFC Regulations, a Collective Investment Scheme (CIS) is required to pay annual fee to the
Securities and Exchange Commission of Pakistan (SECP).

Effective from July 1, 2019, the SECP vide SRO No. 685(I)/2019 dated June 28, 2019, revised the rate of annual fee
to 0.02% of net assets, applicable on all categories of CISs. Previously, the rate of annual fee applicable to equity
funds was 0.095%. Accordingly, the Fund has charged SECP Fee at the rate of 0.02% of net assets during the current
period.

8. CONTINGENCIES AND COMMITMENTS

There were no contingencies and commitments outstanding as at December 31, 2019 and June 30, 2019.

December 31, June 30,

2019 2019
(Unaudited) (Audited)
9. ACCRUED EXPENSES AND OTHER LIABILITIES Note (Rupees in '000)

Auditors' remuneration payable 388 565

Withholding tax payable 4,639 7,394
Capital gain tax payable 1,364 695
Provision for Sindh Workers' Welfare Fund payable (SWWF) 9.1 66,149 50,068
Provision for Federal Excise Duty and related Sindh Sales Tax on
management fee 9.2 37,524 37,524
Provision for Federal Excise Duty and related Sindh Sales Tax on
sales load 9.2 3,732 3,732
Charity payable 8,459 5,197
Zakat payable 45 92
Brokerage payable 18,053 4,775
Shariah advisor fee payable 273 817
140,627 110,859
 6

9.1 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, is 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 has 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, the MUFAP had 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 (i.e. starting from May 21, 2015).

Had the provision for SWWF not been recorded in the condensed interim financial statements of the Fund for the
period from May 21, 2015 to December 31, 2019, the net asset value of the Fund per unit as at December 31, 2019
would have been higher by Re 0.21 (June 30, 2019: Re 0.14 per unit).

9.2 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 41.256 million (June 30, 2019: Rs 41.256
million) is being retained in the condensed interim 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
December 31, 2019 would have been higher by Re 0.13 (June 30, 2019: Re 0.12) per unit.

10. TRANSACTIONS WITH CONNECTED PERSONS / RELATED PARTIES

Connected persons include Al Meezan Investment Management Limited being the Management Company, the Central
Depository Company of Pakistan Limited being the Trustee, Meezan Bank Limited being the holding company of the
Management Company, Directors and Executives of the Management Company, other Funds under the common
management of 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 are in the normal course of business, at contracted rates and
terms determined in accordance with market rates.

Remuneration payable to the Management Company and the Trustee is determined in accordance with the provisions
of the NBFC Rules, the NBFC Regulations and the Trust Deed.
 7

Transactions and balances with related parties are as follows:

December 31, June 30,
2019 2019
(Unaudited) (Audited)
(Rupees in '000)
Al Meezan Investment Management Limited - the Management Company
Remuneration payable 8,396 8,138
Sindh Sales Tax on management fee payable 1,091 1,058
Sales load payable 327 82
Sindh Sales Tax on sales load payable 43 11
Selling and marketing expense payable 4,525 5,201
Allocated expenses payable 420 407
Investment of 31,655,470 units (June 30, 2019: 37,780,110 units) 510,166 504,511

Meezan Bank Limited

Balances with bank 15,484 33,383
Sales load payable 48 20
Sindh Sales Tax on sales load payable 6 3
Profit receivable on saving accounts 924 548
Investment of 1,364,050 shares (June 30, 2019: 898,050 shares) 129,762 78,274
Investment of 22,232,227 units (June 30, 2019: 22,232,227 units) 358,299 296,887

Meezan Financial Planning Fund of Funds - MAAP - I

Investment of 1,425,317 units (June 30, 2019: 39,791) units 22,971 531

Meezan Strategic Allocation Plan - I

Investment of 8,920,012 units (June 30, 2019: 18,848,469 units) 143,757 251,700

Meezan Strategic Allocation Plan - II

Investment of 12,928,146 units (June 30, 2019: 22,818,600 units) 208,353 304,717

Meezan Strategic Allocation Plan - IV

Investment of 4,196,037 units (June 30, 2019: 1,877,734 units) 67,624 25,075

Central Depository Company of Pakistan Limited - Trustee

Trustee fee payable 502 489
Sindh Sales tax on Trustee fee payable 65 63
Security deposits 238 238

Pakistan Kuwait Investment Company (Private) Limited

Investment of 16,895,690 units (June 30, 2019: 16,895,690 units) 272,294 225,623

Directors and executives of the Management Company

Investment of 4,866,989 units (June 30 2019: 32,730,550 units) 78,437 437,080

Unitholders holding 10% or more units of the Fund - 504,511

Six months period ended

December 31,
2019 2018
(Unaudited)
(Rupees in '000)
Al Meezan Investment Management Limited - Management Company
Remuneration for the period 42,853 68,169
Sindh Sales Tax on management fee 5,571 8,862
Allocated expenses 2,143 3,408
Selling and marketing expense 8,571 13,634
Units issued: 31,395,677 units (December 31, 2018: 1,653,020) 440,971 30,000
Units redeemed: 37,520,317 units (December 31, 2018: nil) 527,474 -
 8

Six months period ended

December 31,
2019 2018
(Unaudited)
(Rupees in '000)
Meezan Bank Limited
Profit on saving accounts with banks 2,036 257
Shares purchased : 591,000 shares ( December 31, 2018: nil) 51,418 -
Shares sold: 125,000 shares ( December 31, 2018: nil) 9,787 -
Dividend income from shares 2,087 -

Central Depository Company of Pakistan Limited - Trustee

Trustee fee 2,646 3,913
Sindh Sales Tax on trustee fee 344 509
CDS charges 96 64

Meezan Financial Planning Fund of Funds - MAAP - I

Units issued: 2,473,754 (December 31, 2018: nil) 36,000 -
Redemption of 1,088,228 units (December 31, 2018: nil) 16,000 -

MSAF- Meezan Strategic Allocation Plan IV

Units issued: 2,318,303 (December 31, 2018: nil) 30,000 -

MSAF- Meezan Strategic Allocation Plan - I

Units issued: Nil (December 31, 2018: 5,972,333 units) - 100,000
Redemption of 9,928,456 units (December 31, 2018: nil) 124,470 -

MSAF -Meezan Strategic Allocation Plan - II

Units redeemed: 9,890,452 (December 31, 2018: nil) 124,760 -

Meezan Financial Planning Fund of Funds - MAAP - IV

Units redeemed: Nil (December 31, 2018: 1,304,322 units) - 21,964

Directors and executives of the Management Company

Units issued: 381,349 units (December 31, 2018:1,481,423 units) 4,953 25,365
Units redeemed: 28,244,912 units (December 31, 2018: 220,596 units) 356,112 3,534

11. ALLOCATED EXPENSES

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).

Until June 19, 2019 there was a maximum cap of 0.1% of the average annual net assets of the scheme or actual
whichever is less, for allocation of such expense to the Fund. However, the SECP vide its SRO 639 dated June 20,
2019 removed the maximum cap of 0.1%.

The management company based on its own discretion has currently fixed a maximum capping of 0.1% of the average
annual net assets of the scheme for allocation of such expenses to the Fund.

12. TOTAL EXPENSE RATIO

The Total Expense Ratio (TER) of the Fund for the period ended December 31, 2019 is 4.07% which includes 1.07%
representing government levy, Sindh Workers' Welfare Fund and SECP fee.

13. SELLING AND MARKETING EXPENSES

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) initially for a period of three years (i.e from January 1, 2017 till
December 31, 2019). The maximum cap of selling and marketing expense was 0.4% per annum of the net assets of
the Fund or actual expenses whichever is lower.
 9

During the current period, the SECP through its circular 11 dated July 5, 2019 has revised the conditions for charging
of selling and marketing expenses to a Fund. As per the revised guidelines, the maximum cap of 0.4% per annum has
been lifted and now the asset management company is required to set a maximum limit for charging of such expense
to the Fund and the same should be approved by the Board as part of annual plan. Furthermore, the time limit of three

Accordingly, the management company based on its own discretion has currently determined a capping of 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.

14. TAXATION

The Fund's income is exempt from income tax as per clause (99) of part I of the Second Schedule to the Income Tax
Ordinance, 2001 subject to the condition that not less than 90 percent of the accounting income for the year as
reduced by capital gains, whether realised or unrealised, is distributed amongst the unit holders. Furthermore, as per
regulation 63 of the NBFC Regulations, the Fund is required to distribute 90 percent of the net accounting income
other than capital gains to the unit holders. The Fund has not recorded any tax liability in respect of income relating to
the current period as the Management Company intends to distribute atleast 90 percent of the Fund's accounting
income for the year ending June 30, 2020 as reduced by capital gains (whether realised or unrealised) to its unit
holders.

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.

15. FAIR VALUES OF FINANCIAL INSTRUMENTS

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.

15.1 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: Fair value measurements using quoted price (unadjusted) in an active market for identical assets or
liabilities.
- Level 2: Fair value measurements using inputs other than quoted prices included within level 1 that are
observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
- Level 3: Fair value measurement using inputs for the asset or liability that are not based on observable market
data (i.e. unobservable inputs).

As at December 31, 2019 and June 30, 2019, the Fund held the following financial instruments measured at fair value:

As at December 31, 2019

ASSETS Level 1 Level 2 Level 3 Total
--------------------------------------- (Rupees in '000) ---------------------------------------
Financial assets 'at fair value through profit or loss'
Shares of listed companies 'ordinary shares' 4,878,130 - - 4,878,130

As at June 30, 2019

ASSETS Level 1 Level 2 Level 3 Total
--------------------------------------- (Rupees in '000) ---------------------------------------
Financial assets 'at fair value through profit or loss'
Shares of listed companies 'ordinary shares' 4,614,607 - - 4,614,607
 10

16. GENERAL

16.1 Figures have been rounded off to the nearest thousand rupees.

16.2 Corresponding figures have been reclassified and rearranged in these condensed interim financial statements,
wherever necessary, for the purpose of better presentation. No significant rearrangements or reclassifications were
made in these condensed interim financial statements.

17. DATE OF AUTHORISATION

February 10, 2020
These condensed interim financial statements were authorised for issue on _______________ by the Board of
Directors of the Management Company.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
 REDEFINING INVESTMENT
KSE-Meezan IN THE CITY OF LIGHTS
Index Fund

KSE-MEEZAN INDEX FUND (KMIF)

KSE Meezan Index Fund(KMIF) 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.

KMC BUILDING
(KARACHI)
 REDEFINING INVESTMENT
KSE-Meezan IN THE CITY OF LIGHTS
Index Fund

KSE-MEEZAN INDEX FUND (KMIF)

KSE Meezan Index Fund(KMIF) 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.

KMC BUILDING
(KARACHI)
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. Mohammad Shoaib, CFA Chief Executive Officer
Mr. Muhammad Abdullah Ahmed Nominee Director - MBL
Mr. Mohammad Furquan R Kidwai Independent Director
Mr. ljaz Farooq Nominee Director - MBL
Mr. Moin M. Fudda Independent Director
Ms. Saima Kamila Khan Independent Director
Mr. Arshad Majeed Nominee Director - MBL
Mr. Naeem Abdul Sattar Nominee Director - PKIC
Syed Amir Ali Zaidi Nominee Director – PKIC

CFO & COMPANY SECRETARY OF THE MANAGEMENT COMPANY

Syed Owais Wasti

AUDIT COMMITTEE
Mr. Moin M. Fudda Chairman
Mr. Arshad Majeed Member
Mr. Naeem Abdul Sattar Member

RISK MANAGEMENT COMMITTEE

Mr. Muhammad Abdullah Ahmed Chairman
Syed Amir Ali Zaidi Member
Mr. Naeem Abdul Sattar Member

HUMAN RESOURSE & REMUNERATION COMMITTEE

Mr. Moin M. Fudda Chairman
Mr. Ariful Islam Member
Mr. Naeem Abdul Sattar 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

Habib Metropolitan Bank Limited - Islamic Banking
Meezan Bank Limited
National Bank of Pakistan - 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:

TRANSFER AGENT
Meezan Bank Limited
Meezan House
C-25, Estate Avenue, SITE, Karachi.
Phone: 38103538 Fax: 36406017
Website: www.meezanbank.com

DISTRIBUTORS
Al Meezan Investment Management Limited
Meezan Bank Limited
KSE MEEZAN INDEX FUND
CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES
AS AT DECEMBER 31, 2019

December 31, June 30,

2019 2019
(Unaudited) (Audited)
Note --------(Rupees in '000)--------
Assets
Balances with banks 5 16,250 8,935
Investments 6 1,925,709 1,522,876
Receivable against conversion of units 620 40,106
Dividend receivable 4,133 9,994
Receivable against sale of investments 86,301 -
Deposits, prepayments and other receivables 2,653 2,756
Total assets 2,035,666 1,584,667

Liabilities
Payable to Al Meezan Investment Management Limited - the Management Company 2,080 1,507
Payable to Central Depository Company of Pakistan Limited - the Trustee 271 229
Payable to the Securities and Exchange Commission of Pakistan 8 159 1,564
Payable to Meezan Bank Limited 48 14
Payable on redemption and conversion of units 121 274
Payable against purchase of investments 90,533 44,670
Accrued expenses and other liabilities 9 29,505 19,271
Total liabilities 122,717 67,529

Net assets 1,912,949 1,517,138

Contingencies and commitments 7

Unit holders’ fund (as per statement attached) 1,912,949 1,517,138

(Number of units)

Number of units in issue 29,711,971 28,653,899

(Rupees)

Net asset value per unit 64.3831 52.9470

The annexed notes 1 to 16 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
KSE MEEZAN INDEX FUND
CONDENSED INTERIM INCOME STATEMENT (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

Six months period ended Quarter ended

December 31, December 31,
2019 2018 2019 2018
Note ---------------------------- (Rupees in '000) ----------------------------
Income
Net realised gain / (loss) on sale of investments 42,317 (39,482) 48,605 (34,890)
Dividend income 66,854 50,376 37,351 26,026
Profit on saving accounts with banks 555 145 144 59
Other income 568 695 215 485
110,294 11,734 86,315 (8,320)
Net unrealised appreciation / (diminution) on re-measurement
of investments at 'fair value through profit or loss' 6.1 255,369 (256,065) 355,952 (191,303)

Total income / (loss) 365,663 (244,331) 442,267 (199,623)

Expenses
Remuneration of Al Meezan Investment Management
Limited - the Management Company 7,939 8,343 4,320 4,108
Sindh Sales Tax on remuneration of the Management Company 1,032 1,085 562 534
Allocated expenses 11 794 834 432 411
Remuneration to Central Depository Company of Pakistan
Limited - the Trustee 1,297 1,337 684 663
Sindh Sales Tax on remuneration of the trustee 169 174 89 86
Annual fee to the Securities and Exchange Commission of
Pakistan 8 159 793 87 391
Auditors' remuneration 245 258 152 138
Brokerage fees 2,119 919 1,425 710
Charity expense 1,920 798 1,101 491
Bank and settlement charges 341 323 263 190
Fees and subscription 283 284 142 142
Provision for Sindh Workers' Welfare Fund (SWWF) 9.2 6,987 - 6,987 -
Printing charges 9 20 - 10
Total expenses 23,294 15,168 16,244 7,874

Net income / (loss) for the period before taxation 342,369 (259,499) 426,023 (207,497)

Taxation 13 - - - -

Net income / (loss) for the period after taxation 342,369 (259,499) 426,023 (207,497)

Allocation of net income for the period

Net income for the period after taxation 342,369 -
Income already paid on units redeemed (3,784) -
338,585 -

Accounting income available for distribution

- Relating to capital gains 297,686 -
- Excluding capital gains 40,899 -
338,585 -

The annexed notes 1 to 16 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
KSE MEEZAN INDEX FUND
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

Six months period ended, Quarter ended,

December 31, December 31,
2019 2018 2019 2018
(Rupees in '000) (Rupees in '000)

Net income / (loss) for the period after taxation 342,369 (259,499) 426,023 (207,497)

Other comprehensive income for the period - - - -

Total comprehensive income / (loss) for the period 342,369 (259,499) 426,023 (207,497)

The annexed notes 1 to 16 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
KSE MEEZAN INDEX FUND
CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS’ FUND (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

Six months period ended December 31, Six months period ended December 31,
2019 2018

(Accumul- Undistrib-
ated loss) / uted income
Capital Value Total Capital Value Total
undistrib- / (accumul-
uted income ated loss)

-------------------------------------------------(Rupees in-------------------------------------------------(Rupees
'000)------------------------------------------------- in '000)-------------------------------------------------

Net assets at the beginning of the period 1,779,406 (262,268) 1,517,138 1,469,611 217,869 1,687,480

Issuance of 5,249,132 units (2018: 6,820,850 units)

- Capital value (at net asset value per unit at
the beginning of the period) 277,926 277,926 481,948 - 481,948
- Element of income / (loss) 3,891 3,891 (26,758) - (26,758)
Total proceeds on issuance of units 281,817 - 281,817 455,190 - 455,190

Redemption of 4,191,060 units (2018: 4,963,842 units)

- Capital value (at net asset value per unit at the
beginning of the period) 221,904 221,904 350,736 - 350,736
- Element of (loss) / income 2,687 3,784 6,471 (19,596) - (19,596)
Total payments on redemption of units 224,591 3,784 228,375 331,140 - 331,140

Total comprehensive income / (loss) for the period 342,369 342,369 - (259,499) (259,499)
Distribution during the period - - - - -
Net income / (loss) for the period less distribution - 342,369 342,369 - (259,499) (259,499)

Net assets at the end of the period 1,836,632 76,317 1,912,949 1,593,661 (41,630) 1,552,031

(Accumulated loss) / undistributed income brought forward

- Realised income 184,604 402,733
- Unrealised loss (446,872) (184,864)
(262,268) 217,869
Accounting income available for distribution
- Relating to capital gains 297,686 -
- Excluding capital gains 40,899 -
338,585 -

Net loss for the period after taxation - (259,499)

Distribution during the period - -

Undistributed income / (accumulated loss) carried forward 76,317 (41,630)

Undistributed income / (accumulated loss) carried forward

- Realised (loss) / income (179,052) 214,435
- Unrealised gain / (loss) 255,369 (256,065)
76,317 (41,630)

(Rupees) (Rupees)

Net assets value per unit at the beginning of the period 52.9470 70.6581

Net assets value per unit at the end of the period 64.3831 60.2980

The annexed notes 1 to 16 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
KSE MEEZAN INDEX FUND
CONDENSED INTERIM CASH FLOW STATEMENT (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

Six months period ended

December 31,
2019 2018
--------(Rupees in '000)--------
CASH FLOWS FROM OPERATING ACTIVITIES

Net income / (loss) for the period before taxation 342,369 (259,499)

Adjustments for:
Net unrealised appreciation / (diminution) on re-measurement of investments
at 'fair value through profit or loss' (255,369) 256,065
87,000 (3,434)
Increase in assets
Investments (147,464) (120,407)
Receivable against sale of investments (86,301) -
Dividend receivable 5,861 (3,620)
Deposits, prepayments and other receivables 103 4
(227,801) (124,023)
Decrease in liabilities
Payable to Al Meezan Investment Management Limited
- the Management Company 573 (67)
Payable to Central Depository Company of Pakistan Limited - the Trustee 42 (4)
Payable to the Securities and Exchange Commission of Pakistan (1,405) (854)
Payable to Meezan Bank Limited 34 (18)
Payable against purchase of investments 45,863 52,612
Accrued expenses and other liabilities 10,234 788
55,341 52,457

Net cash used in operating activities (85,460) (75,000)

CASH FLOWS FROM FINANCING ACTIVITIES

Receipt against issuance of units 321,303 455,517

Payment against redemption of units (228,528) (330,110)
Net cash generated from financing activities 92,775 125,407

Net increase in cash and cash equivalents during the period 7,315 50,407
Cash and cash equivalents at beginning of the period 8,935 19,141

Cash and cash equivalents at the end of the period 16,250 69,548

The annexed notes 1 to 16 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
KSE MEEZAN INDEX FUND
NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

1. LEGAL STATUS AND NATURE OF BUSINESS

1.1 KSE Meezan Index 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 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 (the NBFC Rules) and the Non-Banking Finance Companies and Notified Entities Regulations, 2008 (the NBFC
Regulations). The Management Company has been licensed by the 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, 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 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 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
categorised as a Shariah Compliant Index Fund.

1.4 The Management Company has been assigned a quality rating of AM1 by VIS Credit Rating Company Limited dated
December 31, 2019 (2018: AM1 dated December 28, 2018) and by PACRA dated December 28, 2019. The rating
reflects the Company’s experienced management team, structured investment process and sound quality of systems
and processes.

1.5 Title to the assets of the Fund are held in the name of the CDC as the Trustee of the Fund.

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 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.

3 BASIS OF PREPARATION

3.1 STATEMENT OF COMPLIANCE

These condensed interim financial statements have been prepared in accordance with the accounting and reporting
standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards applicable
in Pakistan for interim financial reporting comprise of:

- International Accounting Standard (IAS) 34, Interim Financial Reporting, 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.

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 with the
requirements of IAS 34, 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.
 2

The disclosures made in these condensed interim financial statements have, however, been limited based on the
requirements of the International Accounting Standard 34: 'Interim Financial Reporting'. These condensed interim
financial statements do not include all the information and disclosures required in a full set of financial statements and
should be read in conjunction with the annual published audited financial statements of the Fund for the year ended
June 30, 2019.

These condensed interim financial statements are unaudited. However, a limited scope review has been performed by
the statutory auditors. In compliance with Schedule V of the NBFC Regulations, the directors of the Management
Company declare that these condensed interim financial statements give a true and fair view of the state of affairs of
the Fund as at December 31, 2019.

4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, JUDGMENTS AND RISK

MANAGEMENT

4.1 The accounting policies adopted and the methods of computation of balances used in the preparation of these
condensed interim financial statements are the same as those applied in the preparation of the annual financial
statements of the Fund for the year ended June 30, 2019.

4.2 The preparation of these condensed interim financial statements in conformity with accounting and reporting standards
as applicable in Pakistan require management to make estimates, assumptions and use judgments that affect the
application of policies and reported amounts of assets, liabilities, income and expenses. Estimates, assumptions and
judgments are continually evaluated and are based on historical experience and other factors, including reasonable
expectations of future events. Revisions to accounting estimates are recognised prospectively commencing from the
period of revision. In preparing the condensed interim financial statements, the significant judgments made by
management in applying the Fund’s accounting policies and the key sources of estimation and uncertainty were the
same as those applied to the financial statements as at and for the year ended June 30, 2019. The Fund’s financial
risk management objectives and policies are consistent with those disclosed in the annual financial statements of the
Fund for the year ended June 30, 2019.

4.3 Amendments to published accounting and reporting standards that are effective in the current period

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, 2019. However, these do not have any significant impact on the Fund's
operations and, therefore, have not been detailed in these condensed interim financial statements.

4.4 Standards, interpretations and amendments to published accounting and reporting standards that are not yet
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, 2020
- IAS 8 - 'Accounting policies, change in accounting
estimates and errors' (amendment) January 1, 2020

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 new standards, interpretations and amendments to the accounting and reporting standards that are
mandatory for the Fund's annual accounting period beginning on or after July 1, 2020. However, these do not have any
significant impact on the Fund's operations and, therefore, have not been detailed in these condensed interim financial
statements.

December 31, June 30,

2019 2019
(Unaudited) (Audited)
5 BALANCES WITH BANKS Note (Rupees in '000)

In saving accounts 5.1 13,523 7,559

In current accounts 2,727 1,376
16,250 8,935
 3

5.1 The balance in saving accounts have an expected profit ranging from 3.82% to 11.50% per annum (June 30, 2019:
3.32% to 12.30% per annum).

December 31, June 30,

2019 2019
(Unaudited) (Audited)
6 INVESTMENTS Note (Rupees in '000)

Investments at 'fair value through profit or loss'

Shares of listed companies - 'ordinary shares' 6.1 1,925,709 1,522,876

6.1 Shares of listed companies - 'ordinary shares'

Percentage in relation to
Paid-up
Unrealised
Carrying Market capital of Total
Purchases Rights / Sales As at gain / Net
As at July value as at value as at investee market
during the Bonus during the December (loss) as at assets of
Name of the investee company 1, 2019 December December company value of
period issue period 31, 2019 December the
31, 2019 31, 2019 (with face invest-
31, 2019 Fund
value of ments
investment)
-------------------------- Number of shares --------------------------
-------------------------- (Rupees in '000) --------------------------
--------------------------% --------------------------

Sectors / companies

Automobile Assembler
Honda Atlas Cars (Pakistan) Limited - 76,200 - 13,700 62,500 9,569 13,684 4,115 0.72 0.04 0.71
Millat Tractors Limited - 56,650 6,662 14,600 48,712 36,542 34,314 (2,228) 1.79 0.10 1.78
Pak Suzuki Motor Company Limited - 46,900 - - 46,900 11,227 10,820 (407) 0.57 0.06 0.56
3.08 0.20 3.05
Automobile Parts & Accessories
Thal Limited (note 6.1.1) - 82,300 - 82,300 - - - - - - -
- - -
Bank
Meezan Bank Limited - 762,000 - 62,500 699,500 57,925 66,543 8,618 3.48 0.05 3.46
3.48 0.05 3.46
Cable And Electrical Goods
Pak Elektron Limited 565,303 84,000 - 108,000 541,303 10,884 14,653 3,769 0.77 0.11 0.76
0.77 0.11 0.76
Cement
D.G. Khan Cement Company Limited 498,500 72,500 - 95,000 476,000 26,952 35,353 8,401 1.85 0.11 1.84
Fauji Cement Company Limited 1,735,375 299,000 - 383,500 1,650,875 25,753 25,688 (65) 1.34 0.12 1.33
Lucky Cement Limited 292,680 48,900 - 60,600 280,980 107,615 120,372 12,757 6.29 0.09 6.25
Maple Leaf Cement Factory Limited * 604,155 637,681 - 661,000 580,836 10,615 13,440 2,825 0.70 0.10 0.70
10.18 0.42 10.12
Chemical
Engro Polymer & Chemicals Limited 1,027,271 61,000 - 397,500 690,771 18,660 22,940 4,280 1.20 0.08 1.19
Lotte Chemical Pakistan Limited 857,500 106,000 - 139,000 824,500 12,619 11,559 (1,060) 0.60 0.05 0.60
1.80 0.13 1.79
Engineering
International Industries Limited 122,500 - - 122,500 - - - - - - -
International Steels Limited 393,400 50,000 - 159,500 283,900 11,599 16,435 4,836 0.86 0.07 0.85
0.86 0.07 0.85
Fertilizer
Engro Corporation Limited 716,900 76,000 - 104,400 688,500 184,686 237,705 53,019 12.43 0.12 12.34
Engro Fertilizers Limited 1,357,136 164,500 - 215,500 1,306,136 83,997 95,910 11,913 5.01 0.10 4.98
17.44 0.22 17.32
Food And Personal Care
Frieslandcampina Engro Pakistan Limited 174,500 166,000 - 174,500 166,000 13,240 13,164 (76) 0.69 0.02 0.68
0.69 0.02 0.68
Investment Banks / Investment
Companies / Securities Companies
Daw ood Hercules Corporation Limited - 788,000 - 107,500 680,500 77,859 104,940 27,081 5.49 0.14 5.45
5.49 0.14 5.45
Oil And Gas Exploration Companies
Mari Petroleum Company Limited 55,030 6,940 5,835 8,580 59,225 54,622 77,591 22,969 4.06 0.04 4.03
Oil & Gas Development Company Limited 1,459,618 171,700 - 229,700 1,401,618 183,365 199,478 16,113 10.43 0.03 10.36
Pakistan Oilfields Limited 294,130 42,700 - 54,000 282,830 114,940 126,346 11,406 6.60 0.10 6.56
Pakistan Petroleum Limited 1,254,279 174,800 249,235 231,000 1,447,314 173,803 198,485 24,682 10.38 0.05 10.31
31.47 0.22 31.26

Percentage in relation to
Paid-up
Unrealised
Carrying Market capital of Total
Purchases Rights / Sales As at gain / Net
As at July value as at value as at investee market
during the Bonus during the December (loss) as at assets of
Name of the investee company 1, 2019 December December company value of
 Mari Petroleum Company Limited 55,030 6,940 5,835 8,580 59,225 54,622 77,591 22,969 4.06 0.04 4.03
Oil & Gas Development Company Limited 1,459,618 171,700 - 229,700 1,401,618 183,365 199,478 16,113 10.43 0.03 10.36
Pakistan Oilfields Limited 294,130 42,700 - 54,000 282,830 114,940 126,346 11,406 6.60 0.10 6.56
Pakistan Petroleum Limited 1,254,279 174,800 249,235 231,000 1,447,314 173,803 198,485 24,682 10.38 0.05 10.31
4 31.47 0.22 31.26

Percentage in relation to
Paid-up
Unrealised
Carrying Market capital of Total
Purchases Rights / Sales As at gain / Net
As at July value as at value as at investee market
during the Bonus during the December (loss) as at assets of
Name of the investee company 1, 2019 December December company value of
period issue period 31, 2019 December the
31, 2019 31, 2019 (with face invest-
31, 2019 Fund
value of ments
investment)
-------------------------- Number of shares --------------------------
-------------------------- (Rupees in '000) --------------------------
--------------------------% --------------------------

Oil And Gas Marketing Companies

Attock Petroleum Limited - 63,900 - 63,900 - - - - - - -
Hascol Petroleum Limited * 159,330 629,609 - 180,359 608,580 6,111 16,371 10,260 0.86 0.31 0.85
Pakistan State Oil Company Limited 398,700 538,200 - 477,300 459,600 87,222 88,078 856 4.60 0.10 4.57
Shell Pakistan Limited 48,900 - - 48,900 - - - - - - -
Sui Northern Gas Pipelines Limited 645,833 101,000 - 128,000 618,833 42,876 47,136 4,260 2.46 0.10 2.45
Sui Southern Gas Company Limited 695,231 160,500 - 150,500 705,231 14,437 15,177 740 0.79 0.08 0.79
8.71 0.59 8.66
Paper & Board
Packages Limited 60,812 7,600 - 68,412 - - - - - - -
- - -
Pharmaceuticals
AGP Limited - 248,000 - 248,000 - - - - - - -
The Searle Company Limited 191,759 55,400 - 39,800 207,359 30,630 39,137 8,507 2.05 0.10 2.03
2.05 0.10 2.03
Pow er Generation & Distribution
K-Electric Limited (note 6.1.1) 6,251,040 950,000 - 1,207,000 5,994,040 25,902 26,194 292 1.37 0.02 1.36
The Hub Pow er Company Limited 1,703,897 2,113,500 - 1,703,897 2,113,500 187,542 197,295 9,753 10.31 0.16 10.25
11.68 0.18 11.61
Refinery
Attock Refinery Ltd 98,091 16,300 - 22,000 92,391 7,327 10,319 2,992 0.54 0.09 0.54
Byco Petroleum Pakistan Limited 1,211,000 - - 1,211,000 - - - - - - -
National Refinery Limited 59,048 - - 59,048 - - - - - - -
0.54 0.09 0.54
Technology & Communication
Netsol Technologies Limited - 69,000 - - 69,000 4,622 4,544 (78) 0.24 0.08 0.24
0.24 0.08 0.24
Textile Composite
Nishat Mills Limited 358,300 40,500 - 55,400 343,400 31,632 36,448 4,816 1.91 0.10 1.89
1.91 0.10 1.89
Transport
Pakistan International Bulk Terminal Limited 2,228,000 240,000 - 2,468,000 - - - - - - -
- - -
Vanaspati & Allied Industries
Unity Foods Limited - 347,000 - - 347,000 5,567 5,590 23 0.29 0.06 0.29
0.29 0.06 0.29
Right Certificates
Cement
Maple Leaf Cement Factory Limited * - - 546,681 546,681 - - - - - - -

Oil And Gas Marketing Companies

Hascol Petroleum Limited * - - 607,320 607,320 - - - - - - -

1,670,340 1,925,709 255,369 100

*The right certificates w ere exercised during the period and the shares are included in the investment in Hascol Petroleum Limited and Maple Leaf Cement Factory Limited.

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 and Thal Limited having nominal value of Rs. 5 each.

6.1.2 Investments include 682,000 shares (June 30, 2019: 682,000 shares) of Pakistan Petroleum Limited having market
value of Rs 93.529 million as at December 31, 2019 (June 30, 2019: Rs 98.50 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.

6.2 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.
 5

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 period ended December 31, 2019, 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 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.

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 period were not
withheld by the investee companies.

As at December 31, 2019, the bonus shares of the Fund withheld by certain companies at the time of declaration of
bonus shares amounted to Rs. 1.161 million (June 30, 2019: Rs. 0.883 million).

7 CONTINGENCIES AND COMMITMENTS

There were no contingencies and commitments outstanding as at December 31, 2019 and June 30, 2019.

8 PAYABLE TO THE SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN

In accordance with the NBFC Regulations, a Collective Investment Scheme (CIS) is required to pay annual fee to the
Securities and Exchange Commission of Pakistan (SECP).

Effective from July 1, 2019, the SECP vide SRO No. 685(I)/2019 dated June 28, 2019, revised the rate of annual fee to
0.02% of net assets, applicable on all categories of CISs. Previously, the rate of annual fee applicable to equity funds
was 0.095%. Accordingly, the Fund has charged SECP Fee at the rate of 0.02% of net assets during the current
period.

December 31, June 30,

2019 2019
(Unaudited) (Audited)
9 ACCRUED EXPENSES AND OTHER LIABILITIES Note (Rupees in '000)

Auditor's remuneration payable 212 225

Provision for Federal Excise Duty and related
Sindh Sales Tax on remuneration of the Management Company 9.1 5,741 5,741
Provision for Federal Excise Duty and related
Sindh Sales Tax on sales load 9.1 497 497
Provision for Sindh Workers' Welfare Fund 9.2 16,257 9,270
Withholding tax and capital gain tax payable 345 245
Charity payable 3,563 1,843
Brokerage payable 2,492 1,071
Shariah advisory fee payable 262 264
Printing charges payable 125 115
Zakat payable 11 -
29,505 19,271

9.1 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 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.
 6

With effect from July 1, 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 1, 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 6.238 million is being retained in the
condensed interim 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 0.21 (June 30, 2019:
Re 0.22) per unit.

9.2 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 on a prudent basis 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 condensed interim financial statements of the Fund for the
period from May 21, 2015 to December 31, 2019, the net asset value of the Fund as at December 31, 2019 would
have been higher by Re. 0.55 per unit (June 30, 2019: Re 0.32 per unit).

10 TRANSACTIONS WITH CONNECTED PERSONS / RELATED PARTIES

Connected persons include Al Meezan Investment Management Limited being the Management Company, Central
Depository Company of Pakistan Limited being the Trustee, Meezan Bank Limited being the holding company of the
Management Company, Directors and Executives of the Management Company, other funds under the common
management of 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 are in the normal course of business, at contracted rates and terms determined
in accordance with market rates.

Remuneration payable to the Management Company and the Trustee is determined in accordance with the provision
of the NBFC Rules, the NBFC Regulations and the Trust Deed respectively.

Details of transactions with connected persons and balances with them are as follows:

December 31, June 30,

2019 2019
Balances (Unaudited) (Audited)
(Rupees in '000)
Al Meezan Investment Management Limited - the Management Company
Remuneration payable 1,588 1,224
Sindh Sales Tax on management fee payable 207 159
Sales load payable 112 1
Sindh Sales Tax on sales load payable 14 1
Allocated expenses payable 159 122
Investment of 9,226,675 units (June 30, 2019: 7,651,969 units) 594,042 405,149
 7

December 31, June 30,

2019 2019
(Unaudited) (Audited)
(Rupees in '000)
Meezan Bank Limited
Sales load payable 42 14
Sindh Sale Tax on sales load payable 6 2
Bank balance 4,201 3,425
Profit receivable on savings account 13 62
Investment of 2,113,224 units (June 30, 2019: 2,113,224 units) 136,056 111,889
Investment in 699,500 shares (June 30, 2019: nil shares) 66,543 -

Central Depository Company of Pakistan Limited - the Trustee

Trustee fee payable 220 183
Sindh Sales Tax on trustee fee payable 51 46
Security deposit 103 103

Directors and their close family members and key management

Investment of 20,075 units (June 30, 2019: 18,925 units) 1,292 1,002

Unit holders holding 10% or more units of the Fund

Investment of 9,725,888 units (June 30, 2019: 9,725,888 units) 626,183 514,957

Al Meezan Investment Management Limited (Gratuity Fund)

Investment as at December 31, 2019: 133,559 units (June 30, 2019: 133,559 units) 8,599 7,072

Meezan Strategic Allocation Fund MSAP-I

Investment as at December 31, 2019: 4,311 units (June 30, 2019: 201,580 units) 278 10,673

Meezan Strategic Allocation Fund MSAP-II

Investment as at December 31, 2019: 137,526 units (June 30, 2019: 137,526 units) 8,854 7,282

Meezan Strategic Allocation Fund MSAP-III

Investment as at December 31, 2019: 374,075 units (June 30, 2019: 167,669 units) 24,084 8,879

Meezan Strategic Allocation Fund MSAP-IV

Investment as at December 31, 2019: 396,682 units (June 30, 2019: 190,276 units) 25,540 10,075

Meezan Strategic Allocation Fund MSAP-V

Investment as at December 31, 2019: 56,518 units (June 30, 2019: 56,518 units) 3,639 2,992

Six months period ended

December 31,
Transactions during the period 2019 2018
(Unaudited)
(Rupees in '000)
Al Meezan Investment Management Limited - the Management Company
Remuneration for the period 7,939 8,343
Sindh Sales Tax on remuneration of the Management Company 1,032 1,085
Allocated expenses 794 834
Units issued: 2,236,837 units (December 31, 2018: 1,319,091 units) 109,600 86,100
Units redeemed: 662,131 units (December 31, 2018: nil units) 37,100 -

Meezan Bank Limited

Profit on savings account 302 22
Dividend income 1,425 -
Shares purchased: 762,000 shares (December 31, 2018: nil shares) 63,071 -
Shares sold: 62,500 shares (December 31, 2018: nil shares) 5,769 -
 8

Six months period ended

December 31,
2019 2018
(Unaudited)
(Rupees in '000)
Central Depository Company of Pakistan Limited - the Trustee
Trustee fee 1,297 1,337
Sindh Sales Tax on trustee fee for the period 169 174
CDS charges 43 41

Directors and their close family members and key management

Units issued: 1,590 units (December 31, 2018: 611 units) 91 42
Units redeemed: 440 units (December 31, 2018: nil units) 25 -

Meezan Strategic Allocation Fund MSAP-I

Units redeemed: 197,269 units (December 31, 2018: nil units) 10,000 -

Meezan Strategic Allocation Fund MSAP-III

Units issued: 206,406 units (December 31, 2018: nil units) 10,000 -

Meezan Strategic Allocation Fund MSAP-IV

Units issued: 206,406 units (December 31, 2018: nil units) 10,000 -

11 ALLOCATED EXPENSES

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).

Until June 19, 2019 there was a maximum cap of 0.1% of the average annual net assets of the scheme or actual
whichever is less, for allocation of such expense to the Fund. However, the SECP vide its SRO 639 dated June 20,
2019 removed the maximum cap of 0.1%.

The management company based on its own discretion has currently fixed a maximum capping of 0.1% of the average
annual net assets of the scheme for allocation of such expenses to the Fund.

12 TOTAL EXPENSE RATIO

The Total Expense Ratio (TER) of the Fund for the period ended December 31, 2019 is 2.94% which include 1.09%
representing government levy, Sindh Workers' Welfare Fund and SECP fee.

13 TAXATION

The Fund's income is exempt from income tax as per clause (99) of part I of the Second Schedule to the Income Tax
Ordinance, 2001 subject to the condition that not less than 90 percent of the accounting income for the year as
reduced by capital gains, whether realised or unrealised, is distributed amongst the unit holders. Furthermore, as per
regulation 63 of the NBFC Regulations, the Fund is required to distribute atleast 90 percent of the net accounting
income other than capital gains to the unit holders. The Fund has not recorded any tax liability in respect of income
relating to the current period as the Management Company intends to distribute at least 90 percent of the Fund's
accounting income for the year ending June 30, 2020 as reduced by capital gains (whether realised or unrealised) to
its unit holders.

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.

14 FAIR VALUE OF FINANCIAL INSTRUMENTS

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.
 9

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 tradeable in an open market are revalued at 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.

13.1 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: Fair value measurements using quoted price (unadjusted) in an active market for identical assets or
liabilities.

- Level 2: Fair value measurements using inputs other than quoted prices included within level 1 that are
observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

- Level 3: Fair value measurement using inputs for the asset or liability that are not based on observable market
data (i.e. unobservable inputs).

As at December 31, 2019 and June 30, 2019, the Fund held the following financial instruments measured at fair value:

As at December 31, 2019

Level 1 Level 2 Level 3 Total
ASSETS ---------------------- (Rupees in '000) ---------------------

Financial assets 'at fair value through profit or loss'

Shares of listed companies - 'ordinary shares' 1,925,709 - - 1,925,709

As at June 30, 2019

Level 1 Level 2 Level 3 Total
ASSETS ---------------------- (Rupees in '000) ---------------------

Financial assets 'at fair value through profit or loss'

Shares of listed companies - 'ordinary shares' 1,522,876 - - 1,522,876

15 GENERAL

15.1 Figures have been rounded off to the nearest thousand rupees.

15.2 Corresponding figures have been reclassified and rearranged in these condensed interim financial statements,
wherever necessary, for the purpose of better presentation. No significant rearrangements or reclassifications were
made in these condensed interim financial statements.

16 DATE OF AUTHORISATION
February 10, 2020
These condensed interim financial statements were authorised for issue on _______________ by the Board of
Directors of the Management Company.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
 MAKING OUR MARK IN THE
Meezan LAND OF MOUNTAINS
Energy Fund

MEEZAN ENERGY FUND (MEF)

Meezan Energy Fund (MEF) is a Shariah compliant Energy Sector
(Equity) Scheme. It is an actively managed fund offering a simple way
to take exposure to Shariah compliant energy sector stocks available
at Pakistan Stock Exchange (PSX).

Swat Branch

WHITE PALACE
MARGHAZAR
(SWAT)
 MAKING OUR MARK IN THE
Meezan LAND OF MOUNTAINS
Energy Fund

MEEZAN ENERGY FUND (MEF)

Meezan Energy Fund (MEF) is a Shariah compliant Energy Sector
(Equity) Scheme. It is an actively managed fund offering a simple way
to take exposure to Shariah compliant energy sector stocks available
at Pakistan Stock Exchange (PSX).

Swat Branch

WHITE PALACE
MARGHAZAR
(SWAT)
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. Mohammad Shoaib, CFA Chief Executive Officer
Mr. Muhammad Abdullah Ahmed Nominee Director - MBL
Mr. Mohammad Furquan R Kidwai Independent Director
Mr. ljaz Farooq Nominee Director - MBL
Mr. Moin M. Fudda Independent Director
Ms. Saima Kamila Khan Independent Director
Mr. Arshad Majeed Nominee Director - MBL
Mr. Naeem Abdul Sattar Nominee Director - PKIC
Syed Amir Ali Zaidi Nominee Director – PKIC

CFO & COMPANY SECRETARY OF THE MANAGEMENT COMPANY

Syed Owais Wasti

AUDIT COMMITTEE
Mr. Moin M. Fudda Chairman
Mr. Arshad Majeed Member
Mr. Naeem Abdul Sattar Member

RISK MANAGEMENT COMMITTEE

Mr. Muhammad Abdullah Ahmed Chairman
Syed Amir Ali Zaidi Member
Mr. Naeem Abdul Sattar Member

HUMAN RESOURSE & REMUNERATION COMMITTEE

Mr. Moin M. Fudda Chairman
Mr. Ariful Islam Member
Mr. Naeem Abdul Sattar 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) Meezan Bank Limited
Bank Al Habib 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:

TRANSFER AGENT
Meezan Bank Limited
Meezan House
C-25, Estate Avenue, SITE, Karachi.
Phone: 38103538 Fax: 36406017
Website: www.meezanbank.com

DISTRIBUTORS
Al Meezan Investment Management Limited
Meezan Bank Limited
MEEZAN ENERGY FUND
CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES
AS AT DECEMBER 31, 2019

December 31, June 30,

2019 2019
(Unaudited) (Audited)
Note (Rupees in '000)
Assets
Balances with banks 5 13,164 20,442
Investments 6 599,062 583,850
Receivable against conversion of units 126 557
Dividend receivable 109 2,127
Advances, deposits and other receivables 4,384 1,890
Preliminary expenses and floatation costs 383 483
Total assets 617,228 609,349

Liabilities
Payable to Al Meezan Investment Management Limited - the Management Company 1,899 2,039
Payable to Central Depository Company of Pakistan Limited - the Trustee 118 129
Payable to Meezan Bank Limited 112 1
Payable to Securities and Exchange Commission of Pakistan 7 56 933
Payable against conversion and redemption of units 1,011 724
Payable against purchase of investments - net - 3,424
Accrued expenses and other liabilities 9 5,919 3,396
Total liabilities 9,115 10,646

Net assets 608,113 598,703

Contingencies and commitments 8

Unit holders’ funds (as per statement attached) 608,113 598,703

(Number of units)

Number of units in issue 15,379,012 17,944,102

(Rupees)

Net asset value per unit 39.5418 33.3649

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN ENERGY FUND
CONDENSED INTERIM INCOME STATEMENT (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

Six months Six months Quarter Quarter

period ended period ended ended ended
December December December December
31, 2019 31, 2018 31, 2019 31, 2018

Note (Rupees in '000) (Rupees in '000)

Income
Net realised (loss) / gain on sale of investments (39,152) (56,092) 1,856 (47,636)
Dividend income 11,935 15,791 5,025 9,795
Profit on saving accounts with banks 1,646 1,964 743 625
(25,571) (38,337) 7,624 (37,216)
Net unrealised appreciation / (diminution) on re-measurement
of investments - 'at fair value through profit or loss' 6.1 110,689 (188,359) 160,956 (134,297)
Total income / (loss) 85,118 (226,696) 168,580 (171,513)

Expenses
Remuneration of Al Meezan Investment Management Limited
- the Management Company 5,631 12,522 2,823 5,326
Sindh Sales Tax on remuneration of management fee 732 1,628 367 692
Remuneration to Central Depository Company of Pakistan Limited
- the Trustee 566 1,121 285 509
Sindh Sales Tax on trustee fee 74 146 37 66
Annual fee to the Securities and Exchange Commission of Pakistan 7 56 595 28 253
Auditors' remuneration 177 183 103 102
Charity expense 400 343 150 257
Fees and subscription 283 286 142 144
Brokerage expense 948 666 619 282
Bank and settlement charges 139 59 93 33
Printing charges - 15 - 7
Selling and marketing expense 12 1,126 2,504 564 1,065
Amortisation of preliminary expenses and floatation costs 100 100 50 50
Allocated expenses 11 282 626 142 266
Provision for Sindh Workers' Welfare Fund (SWWF) 9.1 1,492 - 1,492 -
Total expenses 12,006 20,794 6,895 9,052

Net income / (loss) for the period before taxation 73,112 (247,490) 161,685 (180,565)

Taxation 15 - - - -

Net income / (loss) for the period after taxation 73,112 (247,490) 161,685 (180,565)

Allocation of net income for the period

Net income for the period after taxation 73,112 -
Income already paid on units redeemed - -
73,112 -

Accounting income available for distribution

- Relating to capital gains 71,537 -
- Excluding capital gains 1,575 -
73,112 -

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN ENERGY FUND
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

Six months Six months Quarter Quarter

period ended period ended ended ended
December December December December
31, 2019 31, 2018 31, 2019 31, 2018

(Rupees in '000) (Rupees in '000)

Net income / (loss) for the period after taxation 73,112 (247,490) 161,685 (180,565)

Other comprehensive income for the period - - - -

Total comprehensive income / (loss) for the period 73,112 (247,490) 161,685 (180,565)

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN ENERGY FUND
CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUND (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

Six months period ended December 31, Six months period ended December 31,
2019 2018
Accumulated Accumulated
Capital Value Total Capital Value Total
Loss loss
-------------------- (Rupees in '000) ---------------------------------------- (Rupees in '000) --------------------

Net assets at the beginning of the period 967,743 (369,040) 598,703 1,660,781 (24,208) 1,636,573

Issue of 19,834,260 units

(December 31, 2018: 8,245,840 units)
- Capital value (at net asset value per unit at the
beginning of the period) 661,768 - 661,768 410,497 - 410,497
- Element of income / (loss) 23,484 - 23,484 (18,424) - (18,424)
Total proceeds on issuance of units 685,252 - 685,252 392,073 - 392,073

Redemption of 22,399,350 units

(December 31, 2018: 21,079,629 units)
- Capital value (at net asset value per unit at the
beginning of the period) 747,352 - 747,352 1,049,393 - 1,049,393
- Element of loss / (income) 1,602 - 1,602 (55,604) - (55,604)
Total payments on redemption of units 748,954 - 748,954 993,789 - 993,789

Total comprehensive income / (loss) for the period - 73,112 73,112 - (247,490) (247,490)
Distribution during the period - - - - - -
Net income / (loss) for the period less distribution - 73,112 73,112 - (247,490) (247,490)

Net assets at the end of the period 904,041 (295,928) 608,113 1,059,065 (271,698) 787,367

Accumulated loss brought forward

- Realised loss (228,021) (48,945)
- Unrealised (loss) / income (141,019) 24,737
(369,040) (24,208)
Accounting income available for distribution
- Relating to capital gains 71,537 -
- Excluding capital gains 1,575 -
73,112 -
Net loss for the period after taxation - (247,490)
Distribution during the period - -
Accumulated loss carried forward (295,928) (271,698)

Accumulated loss carried forward

- Realised loss (406,617) (83,339)
- Unrealised income / (loss) 110,689 (188,359)
(295,928) (271,698)

(Rupees) (Rupees)
Net assets value per unit at the beginning of the period 33.3649 49.7823
Net assets value per unit at the end of the period 39.5418 39.2882

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN ENERGY FUND
CONDENSED INTERIM CASH FLOW STATEMENT (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

Six months Six months

period ended period ended
December 31, December 31,
2019 2018
(Rupees in '000)
CASH FLOWS FROM OPERATING ACTIVITIES

Net income / (loss) for the period before taxation 73,112 (247,490)

Adjustments for:
Amortisation of preliminary expenses and floatation costs 100 100
Net unrealised (appreciation) / diminution on re-measurement of
investments - 'at fair value through profit or loss' (110,689) 188,359
(37,477) (59,031)
Increase in assets
Investments - net 95,477 486,679
Dividend receivable 2,018 515
Advances, deposits and other receivables (2,494) 351
95,001 487,545
Decrease in liabilities
Payable to Al Meezan Investment Management Limited -
Management Company (140) (1,321)
Payable to Central Depository Company of Pakistan Limited - Trustee (11) (72)
Payable to Meezan Bank Limited 111 (9)
Payable to Securities and Exchange Commission of Pakistan (877) (838)
Payable against purchase of investments - net (3,424) (2,314)
Accrued expenses and other liabilities 2,523 368
(1,818) (4,186)
Net cash generated from operating activities 55,706 424,328

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts against issuance and conversion of units 685,683 404,679

Payment against redemption and conversion of units (748,667) (990,048)
Net cash used in financing activities (62,984) (585,369)

Net decrease in cash and cash equivalents during the period (7,278) (161,041)
Cash and cash equivalents at the beginning of the period 20,442 195,027

Cash and cash equivalents at the end of the period 13,164 33,986

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN ENERGY FUND
NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

1. LEGAL STATUS AND NATURE OF BUSINESS

1.1 Meezan Energy 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 September 9, 2016 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 licensed by the 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, Shahrah-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.

1.4 The Management Company has been assigned a quality rating of AM1 by VIS Credit Rating Company Limited dated
December 31, 2019 (2018: AM1 dated December 28, 2018) and by PACRA dated December 28, 2019. The rating
reflects the Company’s experienced management team, structured investment process and sound quality of systems
and processes.

1.5 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.

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 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.

3. BASIS OF PREPARATION

3.1 STATEMENT OF COMPLIANCE

These condensed interim financial statements have been prepared in accordance with the accounting and reporting
standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards applicable
in Pakistan for interim financial reporting comprise of:

- International Accounting Standard (IAS) 34, Interim Financial Reporting, 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 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, (the NBFC Regulations) and the requirements of
the Trust Deed.

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 with the
requirements of IAS 34, 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.
 2

The disclosures made in these condensed interim financial statements have, however, been limited based on the
requirements of the International Accounting Standard 34: 'Interim Financial Reporting'. These condensed interim
financial statements do not include all the information and disclosures required in a full set of financial statements and
should be read in conjunction with the annual published audited financial statements of the Fund for the year ended
June 30, 2019.

These condensed interim financial statements are unaudited. However, a limited scope review has been performed by
the statutory auditors. In compliance with Schedule V of the NBFC Regulations, the directors of the Management
Company declare that these condensed interim financial statements give a true and fair view of the state of affairs of
the Fund as at December 31, 2019.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, JUDGMENTS AND RISK

MANAGEMENT

4.1 The accounting policies adopted and the methods of computation of balances used in the preparation of these
condensed interim financial statements are the same as those applied in the preparation of the annual financial
statements of the Fund for the year ended June 30, 2019.

4.2 The preparation of these condensed interim financial statements in conformity with accounting and reporting standards
as applicable in Pakistan require management to make estimates, assumptions and use judgments that affect the
application of policies and reported amounts of assets, liabilities, income and expenses. Estimates, assumptions and
judgments are continually evaluated and are based on historical experience and other factors, including reasonable
expectations of future events. Revisions to accounting estimates are recognised prospectively commencing from the
period of revision. In preparing the condensed interim financial statements, the significant judgments made by
management in applying the Fund’s accounting policies and the key sources of estimation and uncertainty were the
same as those applied to the financial statements as at and for the year ended June 30, 2019. The Fund’s financial
risk management objectives and policies are consistent with those disclosed in the annual financial statements of the
Fund for the year ended June 30, 2019.

4.3 Amendments to published accounting and reporting standards that are effective in the current period

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, 2019. However, these do not have any significant impact on the Fund's
operations and, therefore, have not been detailed in these condensed interim financial statements.

4.4 Standards, interpretations and amendments to published accounting and reporting standards that are not yet
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, 2020
- IAS 8 - 'Accounting policies, change in accounting
estimates and errors' (amendment) January 1, 2020

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 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, 2020. However, these do not have any significant
impact on the Fund's operations and, therefore, have not been detailed in these condensed interim financial
statements.

December 31, June 30,

2019 2019
(Unaudited) (Audited)
5. BALANCES WITH BANKS Note (Rupees in '000)

In saving accounts 5.1 12,844 19,835

In current accounts 320 607
13,164 20,442
 3

5.1 The balance in saving accounts have an expected profit ranging from 3.00% to 13.50% per annum (June 30, 2019:
3.32% to 12.35% per annum).

December 31, June 30,

2019 2019
(Unaudited) (Audited)
6. INVESTMENTS Note (Rupees in '000)

Investments - 'at fair value through profit or loss'

Shares of listed companies 'ordinary shares' 6.1 599,062 583,850

6.1 Shares of listed companies 'ordinary shares'

Percentage in relation to

Paid-up
Carrying Market Unrealised Total capital of
Purchases As at
As at July 1, Bonus / Right Sales during value as at value as at gain as at Net market investee
Name of the investee company during the December
2019 issue the period December December December assets of value of company
period 31, 2019
31, 2019 31, 2019 31, 2019 the Fund invest- (with face
ments value of
investment)

-------------------------------Number of shares------------------------------- -------------------(Rupees in '000)--------------------

-------------------------%---------------------------------
Sectors / companies

Oil and Gas Exploration Companies

Mari Petroleum Company Limited (note 6.2) 105,385 12,000 7,618 52,200 72,803 71,044 95,379 24,335 15.68 15.92 0.05
Oil and Gas Development Company Limited 676,600 377,000 - 524,800 528,800 70,309 75,260 4,951 12.38 12.56 0.01
Pakistan Oilfields Limited (note 6.2) 129,180 91,500 - 69,000 151,680 60,620 67,758 7,138 11.14 11.31 0.05
Pakistan Petroleum Limited (note 6.2) 621,765 253,000 81,953 265,000 691,718 87,349 94,862 7,513 15.60 15.83 0.03
54.80 55.62 0.14
Oil and Gas Marketing Companies
Attock Petroleum Limited (note 6.2) 29,000 37,800 - 3,000 63,800 20,875 23,593 2,718 3.88 3.94 0.06
Hascol Petroleum Limited (note 6.2) 616,652 2,691,859 - 1,329,500 1,979,011 21,274 53,235 31,961 8.75 8.89 0.99
Pakistan State Oil Company Limited (note 6.2) 318,240 212,400 62,248 201,000 391,888 59,042 75,101 16,059 12.35 12.54 0.08
Sui Northern Gas Pipelines Limited 1,021,300 200,000 - 790,000 431,300 29,441 32,853 3,412 5.40 5.48 0.07
Sui Southern Gas Pipelines Limited 17,000 - - 17,000 - - - - - - -
30.38 30.85 1.20
Power Generation and Distribution
Hub Power Company Limited 562,844 488,600 - 471,000 580,444 42,525 54,185 11,660 8.91 9.04 0.04
K - Electric Limited (note 6.1.1) 5,916,000 3,000,000 - 2,775,000 6,141,000 25,894 26,836 942 4.41 4.48 0.02
13.32 13.52 0.06
Refinery
National Refinery Limited - 25,000 - 25,000 - - - - - - -

Rights Certificates
Oil And Gas Marketing Companies
Hascol Petroleum Limited * - - 1,976,859 1,976,859 - - - - - - -

Total as at December 31, 2019 488,373 599,062 110,689 100

Total as at June 30, 2019 724,869 583,850 (141,019)

*The right certificates were exercised during the period and the shares are included in the investment in Hascol Petroleum Limited.

6.1.1 All shares have a nominal value of Rs 10 each except for the shares of K-Electric Limited which has face value of Rs
3.5 each.

6.2 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.
 4

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 period ended December 31, 2019, 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 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.

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 period were not
withheld by the investee companies.

As at December 31, 2019, the bonus shares of the Fund withheld by certain companies at the time of declaration of
bonus shares amounted to Rs. 0.931 million (June 30, 2019: Rs. 0.824 million).

7. PAYABLE TO THE SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN (SECP)

In accordance with the NBFC Regulations, a Collective Investment Scheme (CIS) is required to pay annual fee to the
Securities and Exchange Commission of Pakistan (SECP).

Effective from July 1, 2019, the SECP vide SRO No. 685(I)/2019 dated June 28, 2019, revised the rate of annual fee
to 0.02% of net assets, applicable on all categories of CISs. Previously, the rate of annual fee applicable to equity
funds was 0.095%. Accordingly, the Fund has charged SECP Fee at the rate of 0.02% of net assets during the current
period.

8. CONTINGENCIES AND COMMITMENTS

There were no contingencies and commitments outstanding as at December 31, 2019 and June 30, 2019.

December 31, June 30,

2019 2019
(Unaudited) (Audited)
9. ACCRUED EXPENSES AND OTHER LIABILITIES Note (Rupees in '000)

Auditors' remuneration payable 148 195

Printing charges payable 38 38
Shariah advisor fee payable 265 265
Charity payable 424 924
Capital gain tax payable 324 211
Provision for Sindh Workers' Welfare Fund 9.1 3,019 1,527
Zakat payable 6 5
Brokerage Payable 1,695 231
5,919 3,396

9.1 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, is 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 has 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, the MUFAP had 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 (i.e. starting from May 21, 2015).
 5

Had the provision for SWWF not been recorded in the condensed interim financial statements of the Fund for the
period from November 30, 2016 to December 31, 2019, the net asset value per unit of the Fund as at December 31,
2019 would have been higher by Re 0.20 (June 30, 2019: Re 0.09).

10. TRANSACTIONS WITH CONNECTED PERSONS / RELATED PARTIES

Connected persons include Al Meezan Investment Management Limited being the Management Company, the Central
Depository Company of Pakistan Limited being the Trustee, Meezan Bank Limited being the holding company of the
Management Company, Directors and Executives of the Management Company, other Funds under the common
management of 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 unitholders holding 10 percent or more of the Fund's net assets.

Transactions with connected persons / related parties are in the normal course of business, at contracted rates and
terms determined in accordance with market rates.

Remuneration payable to the Management Company and the Trustee is determined in accordance with the provisions
of the NBFC Rules, the NBFC Regulations and the Trust Deed.

Transactions and balances with related parties are as follows:

December 31, June 30,

2019 2019
(Unaudited) (Audited)
(Rupees in '000)
Al Meezan Investment Management Limited - the Management Company
Remuneration payable 1,049 1,137
Sindh Sales Tax on management fee payable 136 148
Sales load payable 86 13
Sindh Sales Tax on sales load payable 11 2
Allocated expenses 52 57
Selling and marketing expense payable 565 682
Investment of 5,703,284 units (June 30, 2019: 6,150,459 units) 225,518 205,209

Meezan Bank Limited

Bank balance 9,997 1,120
Profit receivable on saving accounts 58 162
Sales load payable 99 1
Sindh Sales Tax on sales load payable 13 -

Central Depository Company of Pakistan Limited - the Trustee

Trustee fee payable 104 114
Sindh Sales Tax on trustee fee payable 14 15
Security deposit 100 100

Directors and executives of the Management Company

Investment of 113,347 units (June 30, 2019: 234,114 units) 4,482 7,811

Six months Six months

period ended period ended
December December
31, 2019 31, 2018
(Rupees in '000)
Al Meezan Investment Management Limited - the Management Company
Remuneration for the period 5,631 12,522
Sindh Sales Tax on management fee 732 1,628
Allocated expenses 282 626
Selling and marketing expense 1,126 2,504
Units issued: 967,230 units (December 31, 2018: nil) 30,000 -
Units redeemed: 1,414,404 units (December 31, 2018: 3,987,713 units) 48,000 196,000
 6

Six months Six months

period ended period ended
December December
31, 2019 31, 2018
(Rupees in '000)
Meezan Bank Limited
Profit on saving accounts 987 510

Central Depository Company of Pakistan Limited - the Trustee

Trustee fee 566 1,121
Sindh Sales Tax on trustee fee 74 146
CDS charges 35 26

Directors and executives of the Management Company

Units issued: 3,382,144 units (December 31, 2018: 336,155 units) 104,349 15,470
Units redeemed: 3,422,099 units (December 31, 2018: 284,833 units) 96,881 12,049

11. ALLOCATED EXPENSES

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).

Until June 19, 2019 there was a maximum cap of 0.1% of the average annual net assets of the scheme or actual
whichever is less, for allocation of such expense to the Fund. However, the SECP vide its SRO 639 dated June 20,
2019 removed the maximum cap of 0.1%.

The management company based on its own discretion has currently fixed a maximum capping of 0.1% of the average
annual net assets of the scheme for allocation of such expenses to the Fund.

12. SELLING AND MARKETING EXPENSES

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) initially for a period of three years (i.e from January 1, 2017 till
December 31, 2019). The maximum cap of selling and marketing expense was 0.4% per annum of the net assets of
the Fund or actual expenses whichever is lower.

During the current period, the SECP through its circular 11 dated July 5, 2019 has revised the conditions for charging
of selling and marketing expenses to a Fund. As per the revised guidelines, the maximum cap of 0.4% per annum has
been lifted and now the asset management company is required to set a maximum limit for charging of such expense
to the Fund and the same should be approved by the Board as part of annual plan. Furthermore, the time limit of three
years has also been removed in the revised conditions.

Accordingly, the management company based on its own discretion has currently determined a capping of 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.

13. TOTAL EXPENSE RATIO

The Total Expense Ratio (TER) of the Fund for the period ended December 31, 2019 is 4.26% which includes 0.88%
representing government levies, Sindh Workers' Welfare Fund and SECP Fee.

14. FAIR VALUE OF FINANCIAL INSTRUMENTS

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.
 7

14.1 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: Fair value measurements using quoted price (unadjusted) in an active market for identical assets or
liabilities.

- Level 2: Fair value measurements using inputs other than quoted prices included within level 1 that are
observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

- Level 3: Fair value measurement using inputs for the asset or liability that are not based on observable market
data (i.e. unobservable inputs).

As at December 31, 2019 and June 30, 2019, the Fund held the following financial instruments measured at fair value:

As at December 31, 2019

ASSETS Level 1 Level 2 Level 3 Total
--------------------------------------- (Rupees in '000) ---------------------------------------
Financial assets 'at fair value through profit or loss'
Shares of listed companies 'ordinary shares' 599,062 - - 599,062

As at June 30, 2019

ASSETS Level 1 Level 2 Level 3 Total
--------------------------------------- (Rupees in '000) ---------------------------------------
Financial assets 'at fair value through profit or loss'
Shares of listed companies 'ordinary shares' 583,850 - - 583,850

15. TAXATION

The Fund's income is exempt from income tax as per clause (99) of part I of the Second Schedule to the Income Tax
Ordinance, 2001 subject to the condition that not less than 90 percent of the accounting income for the year as
reduced by capital gains, whether realised or unrealised, is distributed amongst the unitholders. Furthermore, as per
regulation 63 of the NBFC Regulations, the Fund is required to distribute 90 percent of the net accounting income
other than capital gains to the unit holders. The Fund has not recorded any tax liability in respect of income relating to
the current period as the Management Company intends to distribute atleast 90 percent of the Fund's accounting
income for the year ending June 30, 2020 as reduced by capital gains (whether realised or unrealised) to its unit
holders.

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.

16. GENERAL

Figures have been rounded off to the nearest thousand rupees.

Corresponding figures have been reclassified and rearranged in these condensed interim financial statements,
wherever necessary, for the purpose of better presentation. No significant rearrangements or reclassifications were
made in these condensed interim financial statements.

17. DATE OF AUTHORISATION

February 10, 2020
These condensed interim financial statements were authorised for issue on _______________ by the Board of
Directors of the Management Company.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
PICKING UP SPEED
IN THE CITY OF BAZAARS Meezan
Balanced Fund

MEEZAN BALANCED FUND (MBF)

Meezan Balanced Fund is Pakistan’s first Shariah compliant balanced
scheme. It seeks to generate long term capital appreciation as well as
MAUSOLEUM OF AKHUND current income by creating a balanced portfolio that is invested in both
ABDUL GHAFOOR high quality Shariah compliant equity securities and income instruments
(RAWALPINDI)
such as TFC's, COI's, Certifcates of Musharika, Islamic Sukuks,
Ready-future hedges and other Shariah compliant instruments.

Rawalpindi Branch
PICKING UP SPEED
IN THE CITY OF BAZAARS Meezan
Balanced Fund

MEEZAN BALANCED FUND (MBF)

Meezan Balanced Fund is Pakistan’s first Shariah compliant balanced
scheme. It seeks to generate long term capital appreciation as well as
MAUSOLEUM OF AKHUND current income by creating a balanced portfolio that is invested in both
ABDUL GHAFOOR high quality Shariah compliant equity securities and income instruments
(RAWALPINDI)
such as TFC's, COI's, Certifcates of Musharika, Islamic Sukuks,
Ready-future hedges and other Shariah compliant instruments.

Rawalpindi Branch
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. Mohammad Shoaib, CFA Chief Executive Officer
Mr. Muhammad Abdullah Ahmed Nominee Director - MBL
Mr. Mohammad Furquan R Kidwai Independent Director
Mr. ljaz Farooq Nominee Director - MBL
Mr. Moin M. Fudda Independent Director
Ms. Saima Kamila Khan Independent Director
Mr. Arshad Majeed Nominee Director - MBL
Mr. Naeem Abdul Sattar Nominee Director - PKIC
Syed Amir Ali Zaidi Nominee Director – PKIC

CFO & COMPANY SECRETARY OF THE MANAGEMENT COMPANY

Syed Owais Wasti

AUDIT COMMITTEE
Mr. Moin M. Fudda Chairman
Mr. Arshad Majeed Member
Mr. Naeem Abdul Sattar Member

RISK MANAGEMENT COMMITTEE

Mr. Muhammad Abdullah Ahmed Chairman
Syed Amir Ali Zaidi Member
Mr. Naeem Abdul Sattar Member

HUMAN RESOURSE & REMUNERATION COMMITTEE

Mr. Moin M. Fudda Chairman
Mr. Ariful Islam Member
Mr. Naeem Abdul Sattar 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 Islamic 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

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:

TRANSFER AGENT
Meezan Bank Limited
Meezan House
C-25, Estate Avenue, SITE, Karachi.
Phone: 38103538 Fax: 36406017
Website: www.meezanbank.com

DISTRIBUTORS
Al Meezan Investment Management Limited
Meezan Bank Limited
MEEZAN BALANCED FUND
CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES
AS AT DECEMBER 31, 2019

December 31, June 30,

2019 2019
(Unaudited) (Audited)
Note (Rupees in '000)
Assets
Balances with banks 5 561,881 357,560
Investments 6 4,155,329 4,945,739
Receivables against conversion of units 4,453 673
Dividend receivable 5,411 14,704
Receivable against sale of investments 13,251 75,910
Deposits and other receivables 69,655 73,510
Total assets 4,809,980 5,468,096

Liabilities
Payable to Al Meezan Investment Management Limited - the Management Company 15,015 16,770
Payable to Central Depository Company of Pakistan Limited - the Trustee 566 615
Payable to the Securities and Exchange Commission of Pakistan 8 490 5,831
Payable to Meezan Bank Limited 8 1
Payable against purchase of investments - net 5,500 -
Payable on redemption and conversion of units 499 2,247
Dividend payable 7,498 7,490
Accrued expenses and other liabilities 9 98,860 85,052
Total liabilities 128,436 118,006

Net assets 4,681,544 5,350,090

Contingencies and commitments 7

Unit holders’ fund (as per statement attached) 4,681,544 5,350,090

(Number of units)

Number of units in issue 303,871,317 397,457,351

(Rupees)

Net asset value per unit 15.4063 13.4608

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN BALANCED FUND
CONDENSED INTERIM INCOME STATEMENT (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

Six months period ended Quarter ended

December 31, December 31,
2019 2018 2019 2018
Note (Rupees in '000) (Rupees in '000)
Income
Net realised gain / (loss) on sale of investments 32,762 (41,185) 59,954 (34,666)
Dividend income 92,568 116,227 52,487 66,403
Profit on sukuk certificates 100,370 88,898 48,876 47,791
Profit on saving accounts with banks 41,924 39,506 22,372 20,477
Other income - 1,037 - 750
267,624 204,483 183,689 100,755

Net unrealised appreciation / (diminution) on re-measurement of

investments classified as 'financial assets at
fair value through profit or loss' 6 442,070 (593,902) 633,355 (417,597)
Total income / (loss) 709,694 (389,419) 817,044 (316,842)

Expenses
Remuneration of Al Meezan Investment Management
Limited - the Management Company 48,028 74,961 24,292 36,208
Sindh Sales Tax on remuneration of the management company 6,244 9,745 3,158 4,707
Allocated expenses 11 2,401 3,748 1,214 1,810
Selling and marketing expenses 14 9,606 9,365 4,859 1,615
Remuneration of Central Depository Company of
Pakistan Limited - the Trustee 2,904 4,252 1,466 2,062
Sindh Sales Tax on remuneration of the Trustee 378 553 191 269
Annual fee to the Securities and Exchange Commission of Pakistan 8 490 3,186 243 1,539
Auditors' remuneration 349 339 214 175
Charity expense 2,447 1,705 1,350 1,064
Fees and subscription 213 451 68 212
Brokerage expense 1,728 1,210 1,414 937
Bank and settlement charges 392 310 282 122
Printing expenses - 27 - -
Provision for Sindh Workers' Welfare Fund (SWWF) 9.1 12,690 - 12,690 -
Total expenses 87,870 109,852 51,441 50,720

Net income/ (loss) for the period before taxation 621,824 (499,271) 765,602 (367,562)

Taxation 13 - - - -

Net income/ (loss) for the period after taxation 621,824 (499,271) 765,602 (367,562)

Allocation of net income for the period

Net income for the period after taxation 621,824 -
Income already paid on units redeemed (35,513) -
586,311 -

Accounting income available for distribution

- Relating to capital gains 474,832 -
- Excluding capital gains 111,479 -
586,311 -

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN BALANCED FUND
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

Six months period Quarter ended,

December 31, December 31,
2019 2018 2019 2018
(Rupees in '000) (Rupees in '000)

Net income / (loss) for the period after taxation 621,824 (499,271) 765,602 (367,562)

Other comprehensive income for the period - - - -

Total comprehensive income/ (loss) for the period 621,824 (499,271) 765,602 (367,562)

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN BALANCED FUND
CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS’ FUND (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

Six months period ended December 31, 2019 Six months period ended December 31, 2018
Unrealised Unrealised
(Accumulated appreciation/ (Accumulated appreciation
loss) / (diminution) loss) / /(diminution)
Capital Value Total Capital Value Total
Undistri- 'available for Undistri- 'available for
buted income sale' buted income sale'
investments investments
-------------------------------------------------(Rupees in '000)-------------------------------------------------
-------------------------------------------------(Rupees in '000)-------------------------------------------------
Net assets at the beginning of the period
as previously reported (Audited) 5,405,175 (55,085) - 5,350,090 7,010,292 770,770 61,943 7,843,005
Change in accounting policy - - - - - 61,943 (61,943) -
Net assets at the beginning of the period 5,405,175 (55,085) - 5,350,090 7,010,292 832,713 - 7,843,005

Issue of 11,741,729 units (2018: 40,272,181 units)

- Capital value (at net asset value per unit at
the beginning of the period) 158,053 - - 158,053 621,666 - - 621,666
- Element of income / (loss) 8,652 - - 8,652 (18,076) - - (18,076)
Total proceeds on issuance of units 166,705 - - 166,705 603,590 - - 603,590

Redemption of 105,327,763 units (2018: 83,106,976 units)

- Capital value (at net asset value per unit
at the beginning of the period) 1,417,796 - - 1,417,796 1,282,889 - - 1,282,889
- Element of loss / (income) 3,766 35,513 - 39,279 (35,280) - - (35,280)
Total payments on redemption of units 1,421,562 35,513 - 1,457,075 1,247,609 - - 1,247,609

Total comprehensive income / (loss) for the period - 621,824 - 621,824 - (499,271) - (499,271)
Distribution during the period - - - - - - - -
Net income / (loss) for the period less distribution - 621,824 - 621,824 - (499,271) - (499,271)

Net assets at the end of the period 4,150,318 531,226 - 4,681,544 6,366,273 333,442 - 6,699,715

Undistributed income brought forward (as previously

reported (Audited)
- Realised income 819,542 1,498,522
- Unrealised income (874,627) (727,752)
(55,085) 770,770
Change in accounting policy - 61,943
Undistributed income brought forward (55,085) 832,713

Accounting income available for distribution

- Relating to capital gains 474,832 -
- Excluding capital gains 111,479 -
586,311 -
Net loss for the period after taxation - (499,271)
Distribution during the period - -
Undistributed income carried forward 531,226 333,442

Undistributed income carried forward

- Realised income 89,156 927,344
- Unrealised gain / (loss) 442,070 (593,902)
531,226 333,442

(Rupees) (Rupees)
Net assets value per unit at the beginning of the period 13.4608 15.4366
Net assets value per unit at the end of the period 15.4063 14.4004

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN BALANCED FUND
CONDENSED INTERIM CASH FLOW STATEMENT (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

Six months period ended

December 31,
2019 2018
(Rupees in '000)
CASH FLOWS FROM OPERATING ACTIVITIES

Net income / (loss) for the period before taxation 621,824 (499,271)

Adjustments for:
Net unrealised appreciation / (diminution) on re-measurement of investments
classified as 'financial assets at fair value through profit or loss' (442,070) 593,902
179,754 94,631
Decrease / (Increase) in assets
Investments - net 1,232,480 (118,453)
Dividend receivable 9,293 990
Receivable against sale of investments - net 62,659 -
Deposits and other receivables 3,855 (13,244)
1,308,287 (130,707)
Increase in liabilities
Payable to Al Meezan Investment Management Limited - Management Company (1,755) 7,821
Payable to Central Depository Company of Pakistan Limited - Trustee (49) (72)
Payable to Securities and Exchange Commission of Pakistan (5,341) (3,980)
Payable to Meezan Bank Limited 7 (262)
Payable against purchase of investments - net 5,500 2,521
Accrued expenses and other liabilities 13,808 3,383
12,170 9,411

Net cash generated from / (used in) operating activities 1,500,211 (26,665)

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts against issuance and conversion of units 162,925 615,405

Payment against redemption and conversion of units (1,458,823) (1,246,632)
Dividend paid 8 (947)
Net cash used in financing activities (1,295,890) (632,174)

Net increase / (decrease) in cash and cash equivalents during the period 204,321 (658,839)
Cash and cash equivalents at the beginning of the period 357,560 1,682,989

Cash and cash equivalents at the end of the period 561,881 1,024,150

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN BALANCED FUND
NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

1. LEGAL STATUS AND NATURE OF BUSINESS

1.1 Meezan Balanced Fund (the Fund) was initially established as a closed-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 15, 2004 and was approved by the
Securities and Exchange Commission of Pakistan (SECP) on September 8, 2004 under the Non-Banking Finance
Companies (Establishment and Regulation) Rules, 2003 (the NBFC Rules) and Non-Banking Finance Companies and
Notified Entities Regulations, 2008 (the NBFC Regulations). The registered office of the Management Company is
situated at Ground Floor, Block 'B', Finance and Trade Centre, Shahrah-e-Faisal, Karachi 74400, Pakistan.

Subsequently, on May 3, 2013, SECP vide its letter No. SCD/AMCW/MBF /512/2013 had approved the conversion of
the closed end structure into an open end scheme through the establishment of the Unit Trust Scheme under the
name of Meezan Balanced Fund (MBF). On June 27, 2013, SECP vide its letter No SCD/AMCW/MBF/613/2013
registered MBF (the open-end scheme) as a notified entity and had withdrawn the registration of MBF as a closed end
scheme with effect from the effective date i.e. July 1, 2013 and therefore from July 1, 2013, the Fund had been
converted into an open end scheme and, accordingly, the certificate holders of the closed end scheme at June 30,
2013 were converted to unitholders of the open end scheme.

1.2 The Management Company has been licensed by the SECP to act as an Asset Management Company under the
NBFC Rules through a certificate of registration issued by the SECP.

1.3 The investment objective of the Fund is to generate long-term capital appreciation as well as current income by
creating a balanced portfolio that is invested both in high quality Shariah compliant equity securities and Islamic
income instruments such as Islamic Sukuks (certificates of Islamic investment), musharaka certificates, Government
Securities, cash in bank accounts, Money Market Placements, Deposits, Certificates of Deposits, Term Deposits
Receipts, Commercial Papers, Islamic alternatives of Reverse Repos, Spread Transactions, and other Shariah
compliant instruments as indicated by the SECP. 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.

1.4 The Management Company has been assigned a quality rating of AM1 by VIS Credit Rating Company Limited dated
December 31, 2019 (2018: AM1 dated December 28, 2018) and by PACRA dated December 28, 2019. The rating
reflects the Company’s experienced management team, structured investment process and sound quality of systems
and processes.

1.5 The Fund is an open-end fund listed on the Pakistan Stock Exchange Limited. The Fund is categorised as Shariah
Compliant Balanced Fund in accordance with Circular 7 of 2009 issued by the SECP.

1.6 Title to the assets of the Fund are held in the name of CDC as the Trustee of the Fund.

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 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.

3. BASIS OF PREPARATION

3.1 STATEMENT OF COMPLIANCE

These condensed interim 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 Accounting Standard (IAS) 34, Interim Financial Reporting, 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.
 2

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
International Accounting Standard (IAS) 34, Interim Financial Reporting, 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.

The disclosures made in these condensed interim financial statements have, however, been limited based on the
requirements of the International Accounting Standard 34: 'Interim Financial Reporting'. These condensed interim
financial statements do not include all the information and disclosures required in a full set of financial statements and
should be read in conjunction with the annual published audited financial statements of the Fund for the year ended
June 30, 2019.

These condensed interim financial statements are unaudited. However, a limited scope review has been performed
by the statutory auditors. In compliance with Schedule V of the NBFC Regulations, the directors of the Management
Company declare that these condensed interim financial statements give a true and fair view of the state of affairs of
the Fund as at December 31, 2019.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES / ACCOUNTING ESTIMATES, JUDGMENTS AND RISK

MANAGEMENT

4.1 The accounting policies adopted and the methods of computation of balances used in the preparation of these
condensed interim financial statements are the same as those applied in the preparation of the annual financial
statements of the Fund for the year ended June 30, 2019.

4.2 The preparation of the condensed interim financial statements in conformity with accounting and reporting standards
as applicable in Pakistan requires management to make estimates, assumptions and use judgments that affect the
application of policies and reported amounts of assets, liabilities, income and expenses. Estimates, assumptions and
judgments are continually evaluated and are based on historical experience and other factors, including reasonable
expectations of future events. Revisions to accounting estimates are recognised prospectively commencing from the
period of revision. In preparing the condensed interim financial statements, the significant judgments made by
management in applying the Fund’s accounting policies and the key sources of estimation and uncertainty were the
same as those applied to the financial statements as at and for the year ended June 30, 2019. The Fund’s financial
risk management objectives and policies are consistent with those disclosed in the annual financial statements for the
year ended June 30, 2019.

4.3 Standards and amendments to published accounting and reporting standards that are effective in the current
period

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, 2019. However, these do not have any significant impact on the Fund's
operations and, therefore, have not been detailed in these condensed interim financial statements.

4.4 Standards, interpretations and amendments to published accounting and reporting standards that are not yet
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, 2020
- IAS 8 - 'Accounting policies, change in accounting
estimates and errors' (amendment) January 1, 2020

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 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, 2020. However, these do not have any significant
impact on the Fund's operations and, therefore, have not been detailed in these condensed interim financial
statements.
 3

December 31, June 30,

2019 2019
(Unaudited) (Audited)
5. BALANCES WITH BANKS Note (Rupees in '000)

In saving accounts 5.1 543,456 339,909

In current accounts 18,425 17,651
561,881 357,560

5.1 The balance in saving accounts have an expected profit ranging from 3.82% to 13.50% per annum (June 30, 2019:
3.20% to 12.50% per annum).

December 31, June 30,

2019 2019
(Unaudited) (Audited)
Note (Rupees in '000)
6. INVESTMENTS

Investments - 'at fair value through profit or loss' 6.1 4,155,329 4,945,739
4,155,329 4,945,739

6.1 Investments - 'at fair value through profit or loss'

Shares of listed companies - 'ordinary shares' 6.1.1 2,747,036 2,966,177

Sukuk certificates 6.1.2 1,253,134 1,508,261
Commercial papers 6.2.3 155,160 471,301
4,155,329 4,945,739
6.1.1 Shares of listed companies 'ordinary shares'

Percentage in relation to
Paid-up-
Unrealised
Carrying Market Capital of
Purchases Right / Sales As at gain / Total
As at July value as at value as at the investee
Name of the investee company during Bonus during the December (loss) as at Net Assets market
1, 2019 December December company
the period issue period 31, 2019 December of the Fund value of
31, 2019 31, 2019 (with face
31, 2019 investments
value of
investments)
------------------------------- Number of shares -------------------------------------------------- (Rupees in '000) ---------------------------------------------%-------------------------
Sectors / companies

Commercial Banks
Meezan Bank Limited (note 6.2.1.2)
(an associate company of the Fund) 1,212,885 - - 148,000 1,064,885 92,815 101,303 8,487 2.16 0.08 2.44
BankIslami Pakistan Limited 875 950,087 - 75,000 875,962 9,417 9,714 297 0.21 0.08 0.23
2.37 0.16 2.68
Automobile assemblers
Ghandhara Industries Limited (note 6.2.1.2) 67,600 - - 65,500 2,100 183 280 96 0.01 - 0.01
Millat Tractors Company Limited 33,800 - 3,256 7,750 29,306 22,465 20,644 (1,821) 0.44 0.06 0.50
Indus Motor Company Limited - 13,700 - 13,700 16,368 15,915 (453) 0.34 0.02 0.38
Honda Atlas Cars (Pakistan) Limited 800 6,000 - 800 6,000 1,318 1,314 (4) 0.03 - 0.03
0.82 0.08 0.92
Automobile parts and accessories
Agriauto Industries Limited - 40,200 - - 40,200 8,383 8,040 (343) 0.17 0.28 0.19

Chemicals
Engro Polymer & Chemicals Limited 2,398,954 - - 977,000 1,421,954 38,336 47,223 8,887 1.01 0.16 1.14
ICI Pakistan Limited 169,316 - - 5,700 163,616 87,121 110,416 23,296 2.36 0.18 2.66
Lotte Chemical Pakistan Limited 89,000 - - 89,000 - - - - - - -
Sitara Chemical Industries Limited 2,100 - - - 2,100 642 627 (16) 0.01 0.01 0.02
3.38 0.35 3.81

Percentage in relation to
Unrealised Paid-up-
Market
Carrying gain / Capital of
Purchases Right / Sales As at value Total
As at value as at (loss) the investee
Name of the investee company during Bonus during December as at Net Assets market
July 1, 2019 December as at company
the period issue the period 31, 2019 December of the Fund value of
31, 2019 December (with face
31, 2019 investments
31, 2019 value of
investments)
------------------------------- Number of shares -------------------------------------------------- (Rupees in '000) ---------------------------------------------%-------------------------
Engro Polymer & Chemicals Limited 2,398,954 - - 977,000 1,421,954 38,336 47,223 8,887 1.01 0.16 1.14
ICI Pakistan Limited 169,316 - - 5,700 163,616 87,121 110,416 23,296 2.36 0.18 2.66
Lotte Chemical Pakistan Limited 89,000 - - 89,000 - - - - - - -
Sitara Chemical Industries Limited 2,100 - - - 2,100 642 627 (16) 0.01 0.01 0.02
4 3.38 0.35 3.81

Percentage in relation to
Unrealised Paid-up-
Market
Carrying gain / Capital of
Purchases Right / Sales As at value Total
As at value as at (loss) the investee
Name of the investee company during Bonus during December as at Net Assets market
July 1, 2019 December as at company
the period issue the period 31, 2019 December of the Fund value of
31, 2019 December (with face
31, 2019 investments
31, 2019 value of
investments)
------------------------------- Number of shares -------------------------------------------------- (Rupees in '000) ---------------------------------------------%-------------------------
Cement
Attock Cement Pakistan Limited (note 6.2.1.2) 727 - - - 727 52 75 23 - - 0.00
Cherat Cement Company Limited - 350,000 10,000 250,000 110,000 4,296 5,836 1,539 0.12 0.06 0.14
Dew an Cement Limited - - - - - - - - - - -
DG Khan Cement Company Limited 355,409 250,000 - 605,409 - - - - - - -
Fauji Cement Company Limited - 752,500 - 752,500 - - - - - - -
Kohat Cement Limited (note 6.2.1.2) 505,520 - - - 505,520 26,555 39,127 12,572 0.84 0.25 0.94
Lucky Cement Limited 552,951 18,900 - 188,500 383,351 146,162 164,228 18,066 3.51 0.12 3.96
Maple Leaf Cement Limited 3,125 2,656 - - 5,781 107 134 27 - - 0.00
4.47 0.43 5.05
Fertilizers
Daw ood Hercules Corporation Limited - 8,800 - - 8,800 1,010 1,357 347 0.03 - 0.03
Engro Fertilizers Limited 2,705,000 25,000 - 1,001,000 1,729,000 110,736 126,960 16,224 2.71 0.36 3.06
Engro Corporation Pakistan Limited 1,084,490 40,000 - 304,500 819,990 219,955 283,102 63,147
(note 6.1.1.4) 6.05 0.14 6.82
8.79 0.50 9.92
Technology & Communication
Avanceon Limited 240,800 - - 200,000 40,800 2,001 1,532 (469) 0.03 0.02 0.04
Netsol Technologies Limited 3,600 - - - 3,600 237 237 (0) 0.01 - 0.01
Systems Limited 187,550 - - 25,000 162,550 15,600 20,205 4,605 0.43 0.13 0.49
0.47 0.15 0.53
Paper & Board
Cherat Packaging Limited 52,400 - 3,540 17,000 38,940 2,855 4,728 1,874 0.10 0.09 0.11
Packages Limited 273,923 - - 100,000 173,923 52,274 69,350 17,076 1.48 0.19 1.67
1.58 0.28 1.79
Miscellaneous
Shifa International Hospitals Limited 84 - - - 84 18 28 10 - - 0.07

Oil & Gas Exploration

Oil and Gas Development Company Limited 2,453,000 645,900 1,807,100 237,616 257,186 19,571 3.22 0.04 6.20
Pakistan Oilfields Limited (note 6.2.1.2) 449,010 37,000 85,600 400,410 160,662 178,871 18,209 2.11 0.14 4.31
Pakistan Petroleum Limited (note 6.2.1.2) 1,977,835 353,167 742,200 1,588,802 191,226 217,888 26,663 1.03 0.06 5.25
Mari Petroleum Company Limited (note 6.2.1.2) 152,461 4,540 15,246 172,247 158,532 225,661 67,129 1.63 0.13 5.44
7.99 0.37 21.20
Oil and Gas Marketing
Attock Petroleum Limited (note 6.2.1.2) 12,000 - - - 12,000 3,462 4,438 975 3.22 0.04 0.11
Pakistan State Oil Company Limited 771,492 50,000 111,898 567,000 366,390 52,596 70,215 17,619
(note 6.2.1.2) 2.11 0.14 1.69
Hascol Petroleum Limited (note 6.2.1.2) 282,544 809,180 1,188,176 703,000 1,576,900 27,355 42,419 15,063 1.03 0.06 1.02
Sui Northern Gas Pipeline Limited 2,211,500 - - 708,500 1,503,000 104,443 114,484 10,040 1.63 0.13 2.76
7.99 0.37 5.58
Pharmaceuticals
Abbott Laboratories (Pakistan) Limited 2,350 - - 100 2,250 1,068 1,005 (63) 0.02 - 0.02
AGP Limited 626,000 - - 100,000 526,000 36,047 52,258 16,211 1.12 0.19 1.26
GlaxoSmithKline Consumer Healthcare Limited 153,800 - - - 153,800 29,683 39,437 9,754 0.84 0.13 0.95
The Searle Company Limited (note 6.2.1.2) 338,470 - - 123,000 215,470 31,579 40,668 9,088 0.87 0.10 0.98
Highnoon Laboratories Limited 1,598 - - 1,598 405 859 454 0.02 0.01 0.02
2.87 0.43 3.24
Food & Personal Care Products
Engro Foods Limited 3,800 - - 3,800 - - - - - - -
At-Tahur Limited 64,311 - 6,431 - 70,742 1,268 1,482 214 0.03 0.04 0.04
Al-Shaheer Corporation Limited 7,225 - - - 7,225 91 102 11 - 0.01 0.00
- 0.05 0.04
Power Generation & Distribution
Hub Pow er Company Limited 2,432,143 225,000 - 487,000 2,170,143 169,368 202,583 33,213 4.33 0.17 4.88
K-Electric Limited (note 6.2.1) 19,272,000 - - 530,000 18,742,000 82,277 81,903 (374) 1.75 0.19 1.97
6.08 0.36 6.86

Percentage in relation to
Unrealised Paid-up-
Market
Carrying gain / Capital of
Purchases Right / Sales As at value Total
As at value as at (loss) the investee
Name of the investee company during Bonus during December as at Net Assets market
July 1, 2019 December as at company
 Power Generation & Distribution
Hub Pow er Company Limited 2,432,143 225,000 - 487,000 2,170,143 169,368 202,583 33,213 4.33 0.17 4.88
K-Electric Limited (note 6.2.1) 19,272,000 - - 530,000 18,742,000 82,277 81,903 (374) 1.75 0.19 1.97
6.08 0.36 6.86
5

Percentage in relation to
Unrealised Paid-up-
Market
Carrying gain / Capital of
Purchases Right / Sales As at value Total
As at value as at (loss) the investee
Name of the investee company during Bonus during December as at Net Assets market
July 1, 2019 December as at company
the period issue the period 31, 2019 December of the Fund value of
31, 2019 December (with face
31, 2019 investments
31, 2019 value of
investments)
------------------------------- Number of shares -------------------------------------------------- (Rupees in '000) ---------------------------------------------%-------------------------
Real Estate Investment Trust
Dolmen City REIT 1,909,000 - - - 1,909,000 19,415 23,843 4,429 0.51 0.09 0.57

Textile composite
Nishat Mills Limited 680,800 50,000 - 457,800 273,000 25,614 28,976 3,362 0.62 0.08 0.70
Feroze1888 Mills Limited 250,000 13,000 - 263,000 26,366 24,196 (2,170) 0.55 0.07 0.58
1.17 0.15 1.28
Engineering
Amreli Steels Limited - 200,000 - 100,000 100,000 3,000 3,612 612 0.08 0.03 0.09
International Industies Limited 200 71,000 20 - 71,220 6,746 7,894 1,148 0.17 0.05 0.19
International Steel Limited 800 150,000 - 135,000 15,800 654 915 260 0.02 - 0.02
K.S.B. Pumps 5,000 - - - 5,000 505 850 345 0.02 0.04 0.02
Mughal Iron & Steels Ind Ltd - 125,000 - 50,000 75,000 2,472 3,073 600 0.07 0.03 0.07
0.36 0.15 0.39
Vanaspati & Allied Industries
Unity Foods Limited 742,838 - - 242,000 500,838 5,158 8,069 2,911 0.17 0.09 0.19

Glass & Ceramics

Tariq Glass Industries 5,000 - - 5,000 - - - - - - -

Textiles and Apparel

Interloop Limited 1,438,222 - - 29,500 1,408,722 62,364 81,776 19,412 1.75 0.16 1.97

December 31, 2019 2,298,879 2,747,036 448,155 66.28

June 30, 2019 3,824,719 2,966,177 (858,542)

6.1.1.1 All shares have a nominal value of Rs. 10 each except for the shares of K-Electric Limited which have a nominal
value of Rs. 3.50 each and Agriauto Industies limited having a nominal value of Rs. 5 each.

6.1.1.2 The Finance Act, 2014 introduced amendments to the Income Tax Ordinance 2001 as a result of which companies
are liable to withhold five percent of the bonus shares to be issued. The shares so withheld shall only 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 period ended December 31, 2019, 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
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.
 6

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 period were not
withheld by the investee companies.

6.1.1.3 Investments include 150,000 shares of Engro Corporation Limited, having market value of Rs 51.788 million as at
December 31, 2019 (June 30, 2019: Rs. 39.84 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.

6.1.2 Sukuk Certificates

6.1.2.1 Corporate Sukuks

Percentage in relation to
Sales /
Paid-up-
Redemp- Unrealised
Carrying Market Capital of
Purchases tions / As at gain /
As at July value as at value as at Net Assets the investee Total market
during the matured December (loss) as at
Name of the investee company Maturity Profit rate 1, 2019 December December of the company value of
period during 31, 2019 December
31, 2019* 31, 2019* Fund (with face investments
the 31, 2019
value of
period
investments)
---------------Number of certificates -------------- ------------------ (Rupees in '000) ------------------
----------------------------------- % -----------------------------------

Secured
Engro Fertilizer Pakistan Limited - July 9, 6 months KIBOR 2,644 - 2,644 - - - - - -
II`(AA, PACRA, traded) (note 2019 plus base rate
6.2.2.2.1) of 1.75% -

K Electric Limited - (7 years) June 17, 3 months KIBOR 104,704 - 8,725 95,979 210,676 210,494 (182) 4.50 0.01 5.07
(note 6.2.2.2.1) (AA+, VIS, non- 2022 plus base rate
traded) of 1%

Security Leasing Corporation January Nil 1,540 - - 1,540 - - - - - -

Limited II * (note 6.2.2.2.1 & 19, 2022
6.2.2.2.2)

Eden Housing Limited * (note September 6 months KIBOR 5,000 - - 5,000 - - - - - -

6.2.2.2.1 & 6.2.2.2.2) 29, 2014 plus base rate
of 2.5%

Arzoo Textile Mills Limited * (note April 15, 6 months KIBOR 5,000 - - 5,000 - - - - - -
6.2.2.2.1 & 6.2.2.2.2) 2014 plus base rate
of 2%

Hascol Peroleum Limited - Sukuk January 7, 3 months KIBOR 27,500 - 5,000 22,500 113,344 112,574 (770) 2.40 0.01 2.71
(AA, VIS, non-traded) (note 2022 plus base rate
6.2.2.2.1) of 1.50%

Fatima Fertilizer Company November 6 months KIBOR 7,356 - 1,471 5,885 29,650 29,654 4 0.63 - 0.71
Limited - Sukuk (AA-, PACRA, 28, 2021 plus base rate
traded) (note 6.2.2.2.1) of 1.10%

Dubai Islamic Bank Pakistan July 14, 6 months KIBOR 141 - - 141 143,637 141,141 (2,496) 3.01 - 3.40
Limited - Sukuk (A+, VIS,non- 2027 plus base rate
traded) (note 6.2.2.2.1) of 0.50%

International Brands Limited (AA, November 12 months 3,000 - - 3,000 54,481 54,898 417 1.17 - 1.32
VIS, non-traded) (note 6.2.2.2.1) 15, 2021 KIBOR plus
base rate of
0.50%

K-Electric Limited (sukuk 5) December 3 months KIBOR - 40,000 - 40,000 200,000 200,000 - 4.27 - 4.82
(AA+, VIS traded) (note 27, 2026 plus base rate
6.2.2.2.1) of 1.70%

Percentage in relation to
Sales /
Unrealised Paid-up-
Redempti
Carrying Market gain / Capital of
Purchases ons / As at
As at July value as at value as at (loss) Net Assets the investee Total market
during the matured December
Name of the investee company Maturity Profit rate 1, 2019 December December as at of the company value of
period during 31, 2019
31, 2019* 31, 2019* December Fund (with face investments
 K-Electric Limited (sukuk 5) December 3 months KIBOR - 40,000 - 40,000 200,000 200,000 - 4.27 - 4.82
(AA+, VIS traded) (note 27, 2026 plus base rate
6.2.2.2.1) of 1.70%
7

Percentage in relation to
Sales /
Unrealised Paid-up-
Redempti
Carrying Market gain / Capital of
Purchases ons / As at
As at July value as at value as at (loss) Net Assets the investee Total market
during the matured December
Name of the investee company Maturity Profit rate 1, 2019 December December as at of the company value of
period during 31, 2019
31, 2019* 31, 2019* December Fund (with face investments
the
31, 2019 value of
period
investments)
---------------Number of certificates -------------- ------------------ (Rupees in '000) ------------------
----------------------------------- % -----------------------------------

Meezan Bank Limited (AA, VIS, September 6 months KIBOR 200 - - 200 199,995 198,930 (1,065) 4.25 - 4.79
traded) (note 6.2.2.2.1) 22, 2026 plus base rate
of 0.5%

Shakarganj Food Products July 10, 3 months KIBOR - 82 - 82 76,214 75,005 (1,209) 1.60 - 1.81
Limited (A, VIS) (note 6.2.2.2.1) 2024 plus base rate
of 1.75%

Javedan Corporation Limited October 4, 6 months KIBOR - 750 - 750 74,651 73,421 (1,230) 1.57 - 1.77
(AA-, VIS) (note 6.2.2.2.1) 2026 plus base rate
of 1.75%

Agha Steel Industries Limited October 9, 3 months KIBOR - 100 - 100 100,000 100,000 - 2.14 - 2.41
(A+, VIS) (note 6.2.2.2.1) 2024 plus base rate
of 0.80%

Engro Polymer and Chemicals October 9, 3 months KIBOR - 150 - 150 15,070 15,206 136 0.32 - 0.37
Limited (AA, PACRA, non- 2024 plus base rate
traded) of 0.80%

Hub Pow er Company Limited November 3 months KIBOR 20,000 - 20,000 - - - - -

(A+, PACRA, non traded) 27, 2019 plus base rate
of 1.0%

AGP Limited (A+, PACRA, non- December 3 months KIBOR 498 - 83 415 41,500 41,811 311 0.89 - 1.01
traded) (note 6.1.2.1) 9, 2022 plus base rate
of 1.3%

Total December 31, 2019 1,259,218 1,253,134 (6,085) 30.19

Total June 30, 2019 1,524,346 1,508,261 (16,085)

* In case of debt securities against w hich provision has been made, these are carried at carrying value less provision.

6.1.2.1.1 The nominal value of these sukuk certificates is Rs 5,000 each except for the sukuk certificates of Dubai Islamic Bank
Pakistan Limited, Eden Housing Limited, International Brands Limited, Meezan Bank Limited, Shakarganj Food
Products Limited, AGP Limited, Javedan Corporation Limited, Agha Steel Industries Limited and Engro Polymer and
Chemicals Limited having nominal value of Rs 1,000,000, Rs 984.375, Rs 100,000, Rs. 1,000,000, Rs. 1,000,000,
Rs. 100,000, Rs. 100,000 Rs. 1,000,000 and Rs. 100,000 respectively.

6.1.2.1.2 The Securities and Exchange Commission (SECP), vide its circular no. 16 dated July 7, 2010 prescribed certain
disclosures for the schemes holding investments that were non-compliant either with the minimum investment criteria
specified for the category assigned to such schemes or with the investment requirement of their constitutive
documents. The SECP vide circular 7 of 2009 dated March 6, 2009 required all Asset Management Companies to
classify funds under their management on the basis of categorisation criteria laid down in the circular. Al Meezan
Investment Management Limited (the Management Company) classified Meezan Balanced Fund as a 'Balanced
Scheme' in accordance with the said circular. As at December 31, 2019, the Fund is compliant with all the
requirements of the said circular except clause 2(iv) which requires the rating of any debt security in the portfolio shall
not be lower than A- (A Minus).
 8

The following are the details of the non-compliant investments held by the Fund:

Value of Provision Value of

Percentage Percentage
investments held as at investments
Name of the investee company Type of investments of net of total
before December after
assets assets
provision 31, 2019 provision

-------------------(Rupees in '000)-------------------- ----------%------------

Arzoo Textile Mills Limited Non- traded sukuk certificates 25,000 25,000 - - -
Eden Housing Limited Non- traded sukuk certificates 4,922 4,922 - - -
Security Leasing Corporation Limited II Non- traded sukuk certificates 7,701 7,701 - - -
37,623 37,623 -

6.1.3 Commercial papers

Sales / Total
* Carrying * Market
As at
Purchases redemptions As at market
value as at value as at
Maturity July 1, during the / maturity December value of
Name of the security Profit rate December September
date 2019 period during the 31, 2019 invest-
31, 2019 30, 2019
period ment
(Number of certificates) (Rupees in '000) ---- % ----

Hascol Petroleum Limited July 15, 6 months KIBOR plus 300 - 300 - - - -
CP-3 (note 6.2.3.1) 2019 base rate of 1.50%
K-Electric Limited CP-2 September 6 months KIBOR plus 176 - 176 - - - -
(note 6.2.3.1) 2, 2019 base rate of 0.90%
K-Electric Limited CP-3 March 19, 6 months KIBOR plus - 160 - 160 155,160 155,160 3.74%
(note 6.2.3.1) 2020 base rate of 1.13%
Total Decem ber 31, 2019 155,160 155,160
Total June 30, 2019 471,301 471,301

6.1.3.1 The nominal value of these commercial papers is Rs 1,000,000 each.

7. CONTINGENCIES AND COMMITMENTS

There were no contingencies and commitments outstanding as at December 31, 2019 and June 30, 2019.

8. PAYABLE TO THE SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN

In accordance with the NBFC Regulations, a Collective Investment Scheme (CIS) is required to pay annual fee to the
Securities and Exchange Commission of Pakistan (SECP).

Effective from July 1, 2019, the SECP vide SRO No. 685(I)/2019 dated June 28, 2019, revised the rate of annual fee
to 0.02% of net assets, applicable on all categories of CISs. Previously, the rate of annual fee applicable to balanced
fund was 0.095%. Accordingly, the Fund has charged SECP Fee at the rate of 0.02% of net assets during the current
period.

Note December 31, June 30,

2019 2019
(Unaudited) (Audited)
9. ACCRUED EXPENSES AND OTHER LIABILITIES (Rupees in '000)

Withholding tax payable 286 629

Capital gain tax payable 436 -
Provision for Sindh Workers' Welfare Fund (SWWF) 9.1 51,346 38,656
Provision for Federal Excise Duty and related Sindh
Sales Tax on Management Fee 9.2 31,961 31,961
Provision for Federal Excise Duty and related Sindh
Sales Tax on Sales load 6,838 6,838
Brokerage expenses payable 2,483 1,578
Charity payable 4,797 4,351
Shariah advisory fee 385 488
Auditors' remuneration payable 296 369
Zakat Payable 32 182
98,860 85,052
 9

9.1 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 on a prudent basis 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 condensed interim financial statements of the Fund for the
period from May 21, 2015 to December 31, 2019, the net asset value of the Fund as at December 31, 2019 would
have been higher by Re. 0.17 per unit (June 30, 2019: Re 0.10 per unit).

9.2 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 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.

With effect from 01 July 2016, FED on services provided or rendered by non-banking financial institutions dealing in
services which are subject to provincial sales tax has been withdrawn by the Finance Act, 2016.

During the year ended 30 June 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 38.799 million is being retained in the
condensed interim 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 0.13 (June 30, 2019:
Re 0.10) per unit.

10. TRANSACTIONS WITH CONNECTED PERSONS / RELATED PARTIES

Connected persons include Al Meezan Investment Management Limited being the Management Company, Central
Depository Company of Pakistan Limited being the Trustee, Meezan Bank Limited being the holding company of the
Management Company, directors and executives of the Management Company, other funds under the common
management of the Management Company, Pakistan Kuwait Investment Company (Private) Limited being the
associated company of the Management Company and Al Meezan Investment Management Limited - Employees
Gratuity Fund and unitholders holding 10 percent or more units of the Fund's net assets.

Transactions with connected persons are in the normal course of business, at contracted rates and terms determined
in accordance with market rates.

Remuneration payable to the Management Company and the trustee is determined in accordance with the provisions
of the NBFC Rules, the NBFC Regulations and the Trust Deed respectively.
 10

Details of transactions with connected persons and balances with them are as follows:

December 31, June 30,

2019 2019
(Unaudited) (Audited)
(Rupees in '000)
Al Meezan Investment Management Limited - Management Company
Remuneration payable 8,366 9,227
Sales load payable 251 70
Allocated expenses payable 419 462
Sindh Sales Tax on management fee payable 1,088 1,200
Sindh Sales Tax on sales load payable 33 9
Selling and Marketing expenses payable 4,858 5,802
Investment of 900,638 units (June 30, 2019: 900,638 units) 13,876 12,123

Central Depository Company of Pakistan Limited - Trustee

Remuneration payable 501 544
Sindh Sales Tax on trustee fee payable 65 71
Security deposit 300 300

Meezan Bank Limited

Bank balance 26,418 26,870
Sales load payable 7 0.838
Sindh Sales Tax on sales load payable 1 0.109
Investment in 1,064,885 shares (June 30, 2019: 1,212,885 shares) 101,303 105,715
Investment in 200 sukuk certificates (June 30, 2019: 200 sukuk certificates) 198,930 199,995
Investment of 18,886,746 units (June 30, 2019: 18,886,746 units) 290,975 254,231

Al Meezan Investment Management Limited - Employees Gratuity Fund

Investment of 445,734 units (June 30, 2019: 445,734 units) 6,867 6,000

Directors and Executives of the Management Company

Investment of 6,233,929 units (June 30, 2019: 6,395,216 units) 96,042 86,085

For the six months period

ended December 31
2019 2018
(Unaudited)
(Rupees in '000)
Al Meezan Investment Management Limited - Management Company
Remuneration for the period 48,028 74,961
Sindh Sales Tax on management fee 6,244 9,745
Selling and Marketing expenses 9,606 9,365
Allocated expenses 2,401 3,748

Central Depository Company of Pakistan Limited - Trustee

Remuneration for the period 2,904 4,252
Sindh Sales Tax on trustee fee 378 553
CDS charges 48 57

Meezan Bank Limited

Profit on saving account 989 857
Shares sold: 148,000 shares (December 31, 2018: 348,500) 13,946 31,531
Shares purchased: nil shares (December 31, 2018: 1,117,500 shares) - 98,078
Bonus shares: nil shares (December 31, 2018: 20,031) - -
Profit on sukuk certificates 13,620 8,092
Dividend income 2,426 300

Directors and Executives of the Management Company

Units issued: 4,248 units (December 31, 2018: 103,214 units) 58 1,591
Units redeemed: 165,536 units (December 31, 2018: 21,070 units) 2,215 313
 11

11. ALLOCATED EXPENSES

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).

Until June 19, 2019 there was a maximum cap of 0.1% of the average annual net assets of the scheme or actual
whichever is less, for allocation of such expense to the Fund. However, the SECP vide its SRO 639 dated June 20,
2019 removed the maximum cap of 0.1%.

The management company based on its own discretion has currently fixed a maximum capping of 0.1% of the
average annual net assets of the scheme for allocation of such expenses to the Fund.

12. TOTAL EXPENSE RATIO

The Total Expense Ratio (TER) of the Fund for the period ended December 31, 2019 is 3.66% which include 0.83%
representing government levy and SECP fee.

13. TAXATION

The Fund's income is exempt from income tax as per clause (99) of part I of the Second Schedule to the Income Tax
Ordinance, 2001 subject to the condition that not less than 90 percent of the accounting income for the year as
reduced by capital gains, whether realised or unrealised, is distributed amongst the unitholders. Furthermore, as per
regulation 63 of the NBFC Regulations, the Fund is required to distribute atleast 90 percent of the net accounting
income other than capital gains to the unitholders. The Fund has not recorded any tax liability in respect of income
relating to the current period as the Management Company intends to distribute at least 90 percent of the Fund's
accounting income for the year ending June 30, 2020 as reduced by capital gains (whether realised or unrealised) to
its unit holders.

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.

14. SELLING AND MARKETING EXPENSES

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) initially for a period of three years (i.e from January 1, 2017 till
December 31, 2019). The maximum cap of selling and marketing expense was 0.4% per annum of the net assets of
the Fund or actual expenses whichever is lower.

During the current period, the SECP through its circular 11 dated July 5, 2019 has revised the conditions for charging
of selling and marketing expenses to a Fund. As per the revised guidelines, the maximum cap of 0.4% per annum has
been lifted and now the asset management company is required to set a maximum limit for charging of such expense
to the Fund and the same should be approved by the Board as part of annual plan. Furthermore, the time limit of
three years has also been removed in the revised conditions.

Accordingly, the management company based on its own discretion has currently determined a capping of 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.

15. FAIR VALUE OF FINANCIAL INSTRUMENTS

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 tradeable in an open market are revalued at 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.
 12

15.1. 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: Fair value measurements using quoted price (unadjusted) in an active market for identical assets or
liabilities.

- Level 2: Fair value measurements using inputs other than quoted prices included within level 1 that are
observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

- Level 3: Fair value measurement using inputs for the asset or liability that are not based on observable market
data (i.e. unobservable inputs).

As at December 31, 2019 and June 30, 2019, the Fund held the following financial instruments measured at fair
value:

As at December 31, 2019

Level 1 Level 2 Level 3 Total
ASSETS --------------------------------------- (Rupees in '000) ---------------------------------------

Financial assets 'at fair value through profit or loss'

Shares of listed companies - 'ordinary shares' 2,747,036 - - 2,747,036
Sukuk certificates - 1,253,134 - 1,253,134
Commercial papers* - 148,707 - 148,707

As at June 30, 2019

Level 1 Level 2 Level 3 Total
ASSETS --------------------------------------- (Rupees in '000) ---------------------------------------

Financial assets 'at fair value through profit or loss'

Shares of listed companies - 'ordinary shares' 2,966,177 - - 2,966,177
Sukuk certificates - 1,508,261 - 1,508,261
Commercial papers - 471,301 - 471,301

* The valuation of commercial papers has been done based on amortisation of commercial paper to its fair value as per the
guidelines given in Circular 33 of 2012 since the residual maturity of this investment is less than six months and are placed with
counterparties which have high credit rating.

16. GENERAL

16.1 Figures have been rounded off to the nearest thousand rupees.

16.2 Corresponding figures have been reclassified and rearranged in these condensed interim financial statements,
wherever necessary, for the purpose of better presentation. No significant rearrangements or reclassifications were
made in these condensed interim financial statements.

17. DATE OF AUTHORISATION

February 10, 2020
These condensed interim financial statements were authorised for issue on _____________ by the Board of Directors
of the Management Company.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
 Meezan
Asset Allocation Fund
MULTAN MUSEUM
(MULTAN)
MEEZAN ASSET ALLOCATION FUND
(MAAF)
Meezan Asset Allocation Fund (MAAF) is a Shariah compliant Asset
Allocation Scheme. It is designed to help investors build wealth by
long-term capital appreciation, diversification across asset classes
and the flexibility to change investment portfolio exposure as per
the outlook.

UNFOLDING
OPPORTUNITIES OF PROGRESS
IN THE CITY OF TEXTILE
 Meezan
Asset Allocation Fund
MULTAN MUSEUM
(MULTAN)
MEEZAN ASSET ALLOCATION FUND
(MAAF)
Meezan Asset Allocation Fund (MAAF) is a Shariah compliant Asset
Allocation Scheme. It is designed to help investors build wealth by
long-term capital appreciation, diversification across asset classes
and the flexibility to change investment portfolio exposure as per
the outlook.

UNFOLDING
OPPORTUNITIES OF PROGRESS
IN THE CITY OF TEXTILE
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. Mohammad Shoaib, CFA Chief Executive Officer
Mr. Muhammad Abdullah Ahmed Nominee Director - MBL
Mr. Mohammad Furquan R Kidwai Independent Director
Mr. ljaz Farooq Nominee Director - MBL
Mr. Moin M. Fudda Independent Director
Ms. Saima Kamila Khan Independent Director
Mr. Arshad Majeed Nominee Director - MBL
Mr. Naeem Abdul Sattar Nominee Director - PKIC
Syed Amir Ali Zaidi Nominee Director – PKIC

CFO & COMPANY SECRETARY OF THE MANAGEMENT COMPANY

Syed Owais Wasti

AUDIT COMMITTEE
Mr. Moin M. Fudda Chairman
Mr. Arshad Majeed Member
Mr. Naeem Abdul Sattar Member

RISK MANAGEMENT COMMITTEE

Mr. Muhammad Abdullah Ahmed Chairman
Syed Amir Ali Zaidi Member
Mr. Naeem Abdul Sattar Member

HUMAN RESOURSE & REMUNERATION COMMITTEE

Mr. Moin M. Fudda Chairman
Mr. Ariful Islam Member
Mr. Naeem Abdul Sattar 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

Al Baraka Islamic Bank B.S.C (E.C) Habib Metropolitan Bank Limited - Islamic Banking
Bank Al Habib Limited - Islamic Banking Meezan Bank Limited
Bank Islami Pakistan Limited UBL Ameen - Islamic Banking
Dubai Islamic Bank Pakistan Limited
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
E-mail:

TRANSFER AGENT
Meezan Bank Limited
Meezan House
C-25, Estate Avenue, SITE, Karachi.
Phone: 38103538 Fax: 36406017
Website: www.meezanbank.com

DISTRIBUTORS
Al Meezan Investment Management Limited
Meezan Bank Limited
MEEZAN ASSET ALLOCATION FUND
CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES
AS AT DECEMBER 31, 2019

December 31, June 30,

2019 2019
(Unaudited) (Audited)
Note (Rupees in '000)

Assets
Balances with banks 5 303,446 421,539
Investments 6 1,355,616 1,448,626
Dividend receivable 124 5,288
Receivable against sale of investments 9,292 -
Receivable against conversion of units 807 -
Deposits, profit accrued and other receivable 8,468 9,794
Preliminary expenses and floatation costs 235 326
Total assets 1,677,988 1,885,573

Liabilities
Payable to Al Meezan Investment Management Limited - the Management Company 4,340 4,914
Payable to Central Depository Company of Pakistan Limited - the Trustee 225 533
Payable to the Securities and Exchange Commission of Pakistan 8 170 2,380
Payable to Meezan Bank Limited 30 35
Payable against purchase of investments 92 -
Payable against redemption and conversion of units 5,313 9,113
Accrued expenses and other liabilities 7 24,272 14,587
Total liabilities 34,442 31,562

Net assets 1,643,546 1,854,011

Contingencies and commitments 9

Unit holders' fund (as per statement attached) 1,643,546 1,854,011

(Number of units)

Number of units in issue 38,686,728 52,324,763

(Rupees)

Net asset value per unit 42.4834 35.4328

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN ASSET ALLOCATION FUND
CONDENSED INTERIM INCOME STATEMENT (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

Six months period ended Quarter ended

December 31, December 31,
2019 2018 2019 2018
Note (Rupees in '000) (Rupees in '000)
Income
Net realised gain / (loss) on sale of investments 17,090 (34,089) 36,486 (33,833)
Dividend income 46,911 60,440 26,482 36,003
Profit on saving accounts with banks 18,287 14,863 7,576 8,281
82,288 41,214 70,544 10,451
Net unrealised appreciation / (diminution) on re-measurement of
investments classified 'as financial assets at
fair value through profit or loss' 6.1 242,322 (328,448) 330,318 (231,912)
Total income / (loss) 324,610 (287,234) 400,862 (221,461)

Expenses
Remuneration of Al Meezan Investment Management
Limited - the Management Company 12,494 20,820 6,244 10,026
Sindh Sales Tax on remuneration of the Management Company 1,624 2,707 811 1,304
Allocated expenses 11 833 1,388 416 668
Selling and marketing expenses 14 3,332 5,552 1,665 2,674
Remuneration of Central Depository Company of Pakistan
Limited - the Trustee 1,336 1,892 668 920
Sindh Sales Tax on remuneration of the Trustee 174 246 87 120
Annual fee to the Securities and Exchange Commission of
Pakistan 8 170 1,319 83 635
Auditors' remuneration 201 211 125 114
Brokerage expenses 1,307 515 1,038 385
Charity expense 1,228 932 711 636
Bank and settlement charges 349 260 202 148
Amortisation of preliminary expenses and floatation costs 91 91 45 45
Fees and subscription 281 297 141 135
Provision for Sindh Worker's Welfare Fund (SWWF) 7.1 6,024 - 6,024 -
Printing expenses - 10 - 10
Total expenses 29,444 36,240 18,260 17,820

Net income / (loss) for the period before taxation 295,166 (323,474) 382,602 (239,281)

Taxation 12 - -

Net income / (loss) for the period after taxation 295,166 (323,474) 382,602 (239,281)

Allocation of net income for the period

Net income for the period after taxation 295,166 -
Income already paid on units redeemed (26,415) -
268,751 -

Accounting income available for distribution

- Relating to capital gains 259,412 -
- Excluding capital gains 9,339 -
268,751 -

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN ASSET ALLOCATION FUND
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

Six months period Quarter ended,

December 31, December 31,
2019 2018 2019 2018
(Rupees in '000) (Rupees in '000)

Net income / (loss) for the period after taxation 295,166 (323,474) 382,602 (239,281)

Other comprehensive income for the period - - - -

Total comprehensive income / (loss) for the period 295,166 (323,474) 382,602 (239,281)

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN ASSET ALLOCATION FUND
CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUND (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

Six months period ended December 31, Six months period ended December 31,
2019 2018
Accumulated Accumulated
Capital Value Total Capital Value Total
loss loss
---------------- Rupees in 000----------------- ---------------- Rupees in 000-----------------

Net assets at the beginning of the period 2,862,681 (1,008,670) 1,854,011 3,339,382 (462,218) 2,877,164

Issuance of 2,024,063 units (2018: 10,453,999 units)

- Capital value (at net asset value per unit
at the beginning of the period) 71,718 71,718 465,518 - 465,518
- Element of income / (loss) 5,411 5,411 (16,721) - (16,721)
Total proceeds on issuance of units 77,129 - 77,129 448,797 - 448,797

Redemption of 15,662,098 units (2018: 15,125,480 units)

- Capital value (at net asset value per unit
at the beginning of the period) 554,952 554,952 673,539 - 673,539
- Element of loss / (income) 1,393 26,415 27,808 (33,281) - (33,281)
Total payments on redemption of units 556,345 26,415 582,760 640,258 - 640,258

Total comprehensive income / (loss) for the period 295,166 295,166 - (323,474) (323,474)
Distribution during the period - - - -
Net loss for the period less distribution - 295,166 295,166 - (323,474) (323,474)

Net assets at the end of the period 2,383,465 (739,919) 1,643,546 3,147,921 (785,692) 2,362,229

Accumulated loss brought forward

- Realised loss (593,083) (109,140)
- Unrealised loss (415,587) (353,078)
(1,008,670) (462,218)

Accounting income available for distribution

- Relating to capital gains 259,412 -
- Excluding capital gains 9,339 -
268,751 -
Net loss for the period after taxation - (323,474)
Distribution during the period - -
Accumulated loss carried forward (739,919) (785,692)

Accumulated loss carried forward

- Realised loss (982,241) (457,244)
- Unrealised gain / (loss) 242,322 (328,448)
(739,919) (785,692)

(Rupees) (Rupees)
Net assets value per unit at the beginning of the period 35.4328 44.5301
Net assets value per unit at the end of the period 42.4834 39.4098

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN ASSET ALLOCATION FUND
CONDENSED INTERIM CASH FLOW STATEMENT (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

Six months period ended

December 31,
2019 2018
Note (Rupees in '000)
CASH FLOWS FROM OPERATING ACTIVITIES

Net income / (loss) for the period before taxation 295,166 (323,474)

Adjustments for:
Amortisation of preliminary expenses and floatation costs 91 91
Net unrealised (appreciation) / diminution on re-measurement of investments
classified 'as financial assets at fair value through profit or loss' 6.1 (242,322) 328,448

52,935 5,065
Decrease in assets
Investments 335,332 143,428
Dividend receivable 5,164 422
Receivable against sale of investments (9,292) (5,906)
Deposits, profit accrued and other receivable 1,326 (432)
332,530 137,512
Increase / (decrease) in liabilities
Payable to Al Meezan Investment Management Limited - the Management Company (574) 786
Payable to Central Depository Company of Pakistan Limited - the Trustee (308) (32)
Payable to the Securities and Exchange Commission of Pakistan (2,210) (1,577)
Payable to Meezan Bank Limited (5) (12)
Payable against purchase of investments - net 92 (2,190)
Accrued expenses and other liabilities 9,685 1,067
6,680 (1,958)

Net cash generated from operating activities 392,145 140,619

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts against issuance and conversion of units 76,322 458,472

Payment against redemption and conversion of units (586,560) (639,947)
Net cash used in financing activities (510,238) (181,475)

Net decrease in cash and cash equivalents during the period (118,093) (40,856)
Cash and cash equivalents at the beginning of the period 421,539 454,128

Cash and cash equivalents at the end of the period 303,446 413,272

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN ASSET ALLOCATION FUND
NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

1. LEGAL STATUS AND NATURE OF BUSINESS

1.1 Meezan Asset Allocation 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 November 25, 2015 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) on November 16, 2015. The Management Company has been licensed by
the 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, Shahrah-e-Faisal, Karachi 74400, Pakistan.

1.2 The objective of the Fund is to earn potentially high return through asset allocation between Shariah Compliant Equity
Instruments, Shariah Compliant Fixed Income Instruments, Shariah Compliant Money Market Instruments and any
other Shariah Compliant instruments as permitted by the SECP and the Shariah Advisor. Meezan Bank Limited 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 Shariah Compliant Asset Allocation 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.

1.4 The Management Company has been assigned a quality rating of AM1 by VIS Credit Rating Company Limited dated
December 31, 2019 (2018: AM1 dated December 28, 2018) and by PACRA dated December 28, 2019. The rating
reflects the Company’s experienced management team, structured investment process and sound quality of systems
and processes.

1.5 Title to the assets of the Fund are held in the name of CDC as the Trustee of the Fund.

2. BASIS OF PRESENTATION

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.

3. BASIS OF PREPARATION

3.1 STATEMENT OF COMPLIANCE

These condensed interim financial statements have been prepared in accordance with the accounting and reporting
standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards applicable
in Pakistan for interim financial reporting comprise of:

- International Accounting Standard (IAS) 34, Interim Financial Reporting, 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 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, (the NBFC Regulations) and the requirements of
the Trust Deed.

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 with the
requirements of IAS 34, 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.
 2

The disclosures made in these condensed interim financial statements have, however, been limited based on the
requirements of the International Accounting Standard 34: 'Interim Financial Reporting'. These condensed interim
financial statements do not include all the information and disclosures required in a full set of financial statements and
should be read in conjunction with the annual published audited financial statements of the Fund for the year ended
June 30, 2019.

These condensed interim financial statements are unaudited. However, a limited scope review has been performed by
the statutory auditors. In compliance with Schedule V of the NBFC Regulations, the directors of the Management
Company declare that these condensed interim financial statements give a true and fair view of the state of affairs of
the Fund as at December 31, 2019.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, JUDGMENTS AND RISK

MANAGEMENT

4.1 The accounting policies adopted and the methods of computation of balances used in the preparation of these
condensed interim financial statements are the same as those applied in the preparation of the annual financial
statements of the Fund for the year ended June 30, 2019.

4.2 The preparation of these condensed interim financial statements in conformity with accounting and reporting standards
as applicable in Pakistan require management to make estimates, assumptions and use judgments that affect the
application of policies and reported amounts of assets, liabilities, income and expenses. Estimates, assumptions and
judgments are continually evaluated and are based on historical experience and other factors, including reasonable
expectations of future events. Revisions to accounting estimates are recognised prospectively commencing from the
period of revision. In preparing the condensed interim financial statements, the significant judgments made by
management in applying the Fund’s accounting policies and the key sources of estimation and uncertainty were the
same as those applied to the financial statements as at and for the year ended June 30, 2019. The Fund’s financial
risk management objectives and policies are consistent with those disclosed in the annual financial statements of the
Fund for the year ended June 30, 2019.

4.3 Amendments to published accounting and reporting standards that are effective in the current period

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, 2019. However, these do not have any significant impact on the Fund's
operations and, therefore, have not been detailed in these condensed interim financial statements.

4.4 Standards, interpretations and amendments to published accounting and reporting standards that are not yet
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, 2020
- IAS 8 - 'Accounting policies, change in accounting
estimates and errors' (amendment) January 1, 2020

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 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, 2020. However, these do not have any significant
impact on the Fund's operations and, therefore, have not been detailed in these condensed interim financial
statements.

December 31, June 30,

2019 2019
(Unaudited) (Audited)
5. BALANCES WITH BANKS Note (Rupees in '000)

In saving accounts 5.1 300,388 419,654

In current accounts 3,058 1,885
303,446 421,539
 3

5.1 The balance in saving accounts have an expected profit ranging from 3.82% to 13.25% per annum (June 30, 2019:
3.32% to 12.35% per annum).

December 31, June 30,

2019 2019
(Un-audited) (Audited)
6. INVESTMENTS Note (Rupees in '000)

Investments at 'fair value through profit or loss'

Shares of listed companies 'ordinary shares' 6.1 1,355,616 1,448,626

6.1 Shares of listed companies 'ordinary shares'

Percentage in relation to
Unrealise Paid-up
Carrying Market d gain / capital of Total
Purchases Bonus / Sales As at Net
As at July 1, value as at value as at (loss) as investee market
during the right during the December assets
Name of the investee company 2019 December December at company value of
period issue period 31, 2019 of the
31, 2019 31, 2019 December (with face invest-
Fund
31, 2019 value of ments
investment)
------------------------- (Number of shares) ------------------------- --------------- (Rupees in '000) ---------------
--------------------------% --------------------------

Sectors/ Companies

Automobile Assembler
Ghandhara Industries Limited 55,000 - - 55,000 - - - - - - -
Honda Atlas Cars (Pakistan) Limited 1,800 12,300 - 1,800 12,300 2,720 2,693 (27) 0.16 0.01 0.20
Indus Motor Company Limited - 7,960 - - 7,960 9,512 9,247 (265) 0.56 0.01 0.68
Millat Tractors Limited 5,000 - - 5,000 - - - - - - -
0.73 0.02 0.88
Automobile Parts & Accessories
Agriauto Industries Limited (note 6.1.1) - 40,000 - - 40,000 8,355 8,000 (355) 0.49 0.14 0.59

Chemicals
Engro Polymer & Chemicals Limited 1,110,761 300,000 - 898,000 512,761 14,001 17,029 3,028 1.04 0.06 1.26
ICI Pakistan Limited 80,650 1,000 - 2,750 78,900 41,929 53,246 11,317 3.24 0.09 3.93
4.28 0.15 5.18
Cement
Cherat Cement Company Limited - 240,000 6,500 160,000 86,500 3,384 4,589 1,205 0.28 0.05 0.34
D.G. Khan Cement Company Limited 129,000 150,000 - 279,000 - - - - - - -
Fauji Cement - 187,500 - 187,500 - - - - - - -
Kohat Cement Company Limited 225,000 - - - 225,000 11,819 17,415 5,596 1.06 0.11 1.28
Lucky Cement Limited 304,700 - - 74,000 230,700 87,774 98,832 11,058 6.01 0.07 7.29
Maple Leaf Cement Limited 11,112 95 - 11,000 207 4 5 1 - - -
Pioneer Cement Limited 500 - - - 500 11 15 4 - - -
7.35 0.23 8.91
Commercial Banks
Meezan Bank Limited 528,446 50,000 - 25,000 553,446 47,824 52,649 4,825 3.20 0.04 3.88
Bank Islami Pakistan Limited - 550,000 - 50,000 500,000 5,375 5,545 170 0.34 0.05 0.41
3.54 0.09 4.29
Engineering
Amreli Steels limited - 150,000 - 75,000 75,000 2,253 2,709 456 0.16 0.03 0.20
International Industries Limited 107,500 25,000 9,600 86,500 55,600 4,193 6,163 1,970 0.37 0.04 0.45
International Steels Limited 105,000 525,000 - 617,500 12,500 471 724 253 0.04 - 0.05
Mughal Iron and Steel Industries Limited - 125,000 - 25,000 100,000 3,297 4,097 800 0.25 0.04 0.30
0.83 0.11 1.01
Fertilizer
Engro Corporation Limited (note 6.1.2) 609,400 26,700 - 216,500 419,600 113,075 144,867 31,792 8.81 0.07 10.69
Engro Fertilizers Limited 1,745,000 25,000 - 808,000 962,000 61,663 70,640 8,977 4.30 0.07 5.21
13.11 0.14 15.90
Food and Personal Care Products
Al-Shaheer Corporation Limited (Note 6.2) 3,750 - - - 3,750 47 53 6 - - -
Frieslandcampina Engro Foods Limited 700 - - 700 - - - - - - -
- - -
Glass and Ceramics
Tariq Glass Industries Limited 10,000 - - 10,000 - - - - - - -

Percentage in relation to

Unrealise Paid-up
Carrying Market d gain / capital of Total
Purchases Bonus / Sales As at Net
As at July 1, value as at value as at (loss) as investee market
during the right during the December assets
Name of the investee company 2019 December December at company value of
period issue period 31, 2019 of the
31, 2019 31, 2019 December (with face investme
Fund
31, 2019 value of nts
 Al-Shaheer Corporation Limited (Note 6.2) 3,750 - - - 3,750 47 53 6 - - -
Frieslandcampina Engro Foods Limited 700 - - 700 - - - - - - -
- - -
Glass and Ceramics
Tariq Glass Industries Limited 10,000 - - 410,000 - - - - - - -

Percentage in relation to

Unrealise Paid-up
Carrying Market d gain / capital of Total
Purchases Bonus / Sales As at Net
As at July 1, value as at value as at (loss) as investee market
during the right during the December assets
Name of the investee company 2019 December December at company value of
period issue period 31, 2019 of the
31, 2019 31, 2019 December (with face investme
Fund
31, 2019 value of nts
investment)

------------------------- (Number of shares) ------------------------- --------------- (Rupees in '000) ---------------

--------------------------% --------------------------

Oil and Gas Exploration Companies

Attock Petroleum Limited - 25,000 - - 25,000 7,625 9,245 1,620 0.56 0.03 0.68
Oil and Gas Development Company Limited 1,319,800 350,000 - 784,500 885,300 114,476 125,996 11,520 7.67 0.02 9.29
Mari Petroleum Company Limited 60,720 1,500 6,072 - 68,292 62,906 89,469 26,563 5.44 0.05 6.60
Pakistan Oilfields Limited 93,950 50,000 - - 143,950 55,659 64,305 8,646 3.91 0.05 4.74
Pakistan Petroleum Limited 1,161,390 25,000 193,238 625,200 754,428 90,866 103,462 12,596 6.30 0.03 7.63
23.88 0.18 28.95
Oil and Gas Marketing Companies
Hascol Petroleum Limited (Note 6.2) 301,675 3,169,435 - 1,080,500 2,390,610 27,583 64,307 36,724 3.91 1.20 4.74
Pakistan State Oil Company Limited (Note 6.2) 323,348 55,800 55,830 254,500 180,478 25,704 34,587 8,883 2.10 0.04 2.55
Sui Northern Gas Pipelines Limited 1,317,400 - - 520,500 796,900 55,377 60,700 5,323 3.69 0.13 4.48
9.71 1.36 11.77
Paper and Board
Cherat Packaging Limited 21,752 - 825 13,500 9,077 665 1,102 437 0.07 0.02 0.08
Packages Limited 51,350 - - - 51,350 15,434 20,475 5,041 1.25 0.06 1.51
1.31 0.08 1.59
Pharmaceuticals
Abbott Laboratories (Pakistan) Limited 50 - - - 50 24 22 (2) - - -
AGP Limited 289,000 - - 101,500 187,500 12,849 18,628 5,779 1.13 0.07 1.37
GlaxoSmithKline Consumer Healthcare Limited 47,000 7,400 - - 54,400 11,195 13,949 2,754 0.85 0.05 1.03
The Searle Company Limited (Note 6.2) 132,849 - - 35,000 97,849 14,341 18,468 4,127 1.12 0.05 1.36
3.11 0.16 3.77
Pow er Generation and Distribution
K-Electric Limited (note 6.1.1) 11,955,000 - - 730,000 11,225,000 49,278 49,053 (225) 2.98 0.04 3.62
The Hub Pow er Company Limited 942,512 471,500 - 313,500 1,100,512 83,493 102,733 19,240 6.25 0.08 7.58
9.24 0.13 11.20
Technology and Communication
Avanceon Limited 147,000 - - 147,000 - - - - - - -
Pakistan Telecommunication Company Limited 100,000 - - 100,000 - - - - - - -
Systems Limited 79,200 25,000 - 25,000 79,200 8,027 9,845 1,818 0.60 0.06 0.73
0.60 0.06 0.73
Textile Composite
Interloop Limited 724,712 - - 50,000 674,712 29,870 39,167 9,297 2.38 0.08 2.89
Nishat Mills Limited 398,400 25,000 - 242,400 181,000 16,674 19,211 2,537 1.17 0.05 1.42
3.55 0.13 4.31
Textile Weaving
Feroze1888 Mills Limited 131,000 3,500 - - 134,500 13,541 12,374 (1,167) 0.75 0.04 0.91

Rights Certificates
Oil And Gas Marketing Companies
Hascol Petroleum Limited * - - 150,000 150,000 - - - - - - -

Total 1,113,294 1,355,616 242,322 100%

Total as at June 30, 2019 1,864,213 1,448,626 (415,587)

*The right certificates w ere exercised during the period and the shares are included in the investment in Hascol Petroleum Limited.

6.1.1 All shares have a nominal value of Rs 10 each except for the shares of K-Electric Limited which have a nominal value
of Rs 3.5 each and Agriauto Industries Limited which have a nominal value of Rs 5 each.

6.1.2 Investments include 150,000 shares (June 30, 2019: 150,000 shares) of Engro Corporation Limited, having market
value of Rs 36.25 million (June 30, 2019: Rs 27.89 million) as at December 31, 2019, which have been pledged with
National Clearing Company of Pakistan for guaranteeing settlement of Fund's trades in accordance with Circular 11
dated October 23, 2007 by SECP.

6.2 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.
 5

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 period ended December 31, 2019, 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 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.

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 period were not
withheld by the investee companies.

As at December 31, 2019, the bonus shares of the Fund withheld by certain companies at the time of declaration of
bonus shares amounted to Rs. 1.612 million (June 30, 2019: Rs. 1.209 million).

December 31, June 30,

2019 2019
(Unaudited) (Audited)
7. ACCRUED EXPENSES AND OTHER LIABILITIES Note (Rupees in '000)

Charity payable 3,162 1,933

Brokerage payable 3,892 1,455
Auditors' remuneration payable 172 195
Withholding tax payable - 26
Capital gain tax payable 38 1
Provision for Sindh Workers' Welfare Fund (SWWF) 7.1 16,104 10,080
Provision for Federal Excise Duty and related Sindh
Sales Tax on management fee 7.2 482 482
Provision for Federal Excise Duty and related Sindh
Sales Tax on sales load 7.2 145 145
Shariah advisory fee payable 264 266
Zakat payable 13 4
Others
24,272 14,587

7.1 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, is 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 has 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, the MUFAP had 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 (i.e. starting from May 21, 2015).

Had the provision for SWWF not been recorded in the condensed interim financial statements, the NAV per unit of the
Fund would have been higher by Re 0.42 per unit as at December 31, 2019 (June 30, 2019 : 0.19 per unit).
 6

7.2 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 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.

With effect from 01 July 2016, FED on services provided or rendered by non-banking financial institutions dealing in
services which are subject to provincial sales tax has been withdrawn by the Finance Act, 2016.

During the year ended 30 June 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 0.627 million (June 30, 2019: Rs 0.627
million) is being retained in the condensed interim financial statements as the matter is pending before the Supreme
Court of Pakistan. Had the provision for FED not been made, the Net Asset Value per unit of the Fund as at December
31, 2019 would have been higher by Re 0.02 (June 30, 2019: Re 0.01) per unit.

8. PAYABLE TO THE SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN (SECP)

In accordance with the NBFC Regulations, a Collective Investment Scheme (CIS) is required to pay annual fee to the
Securities and Exchange Commission of Pakistan (SECP).

Effective from July 1, 2019, the SECP vide SRO No. 685(I)/2019 dated June 28, 2019, revised the rate of annual fee
to 0.02% of net assets, applicable on all categories of CISs. Previously, the rate of annual fee applicable to equity
funds was 0.095%. Accordingly, the Fund has charged SECP Fee at the rate of 0.02% of net assets during the current
period.

9. CONTINGENCIES AND COMMITMENTS

There were no contingencies and commitments outstanding as at December 31, 2019 and June 30, 2019.

10. TRANSACTIONS WITH CONNECTED PERSONS / RELATED PARTIES

Connected persons include Al Meezan Investment Management Limited being the Management Company, the Central
Depository Company of Pakistan Limited being the Trustee, Meezan Bank Limited being the holding company of the
Management Company, Directors and Executives of the Management Company, others Funds under the common
management of 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 are in the normal course of business, at contracted rates and terms determined
in accordance with market rates.

Remuneration payable to the Management Company and the Trustee is determined in accordance with the provisions
of the NBFC Rules, the NBFC Regulations and the Trust Deed respectively.

Details of transactions with connected persons and balances with them are as follows:

December 31, June 30,

2019 2019
(Unaudited) (Audited)
(Rupees in '000)
Al Meezan Investment Management Limited - the Management Company
Remuneration payable 2,067 2,383
Sindh Sales Tax on management fee payable 269 310
Sales load payable 177 16
Sindh sales tax on sales load payable 24 2
Allocated expense payable 138 159
Selling & marketing expense payable 1,665 2,044
 7

December 31, June 30,

2019 2019
(Unaudited) (Audited)
(Rupees in '000)
Meezan Bank Limited
Sales load payable 27 47
Sindh Sales Tax on sales load payable 3 6
Bank balance 132,237 6,620
Profit receivable on saving account 67 37
Investment in 553,446 shares (June,30 2019: 528,446 shares) 52,649 46,059

Central Depository Company of Pakistan Limited - the Trustee

Trustee fee payable 199 472
Sindh Sales Tax on trustee fee payable 26 61
Security deposit 100 100

Directors and Executives of the Management Company

Investments as at December 31, 2019: 43,552 units (June 30, 2019: 30,242 units) 1,850 1,072

For the six months period

ended December 31,
2019 2018
(Rupees in '000)
(Unaudited)
Al Meezan Investment Management Limited - the Management Company
Remuneration for the period 12,494 20,820
Sindh Sales Tax on management fee for the period 1,624 2,707
Allocated expenses 833 1,388
Selling and marketing expense 3,332 5,552

Meezan Bank Limited

Shares purchased during the period: 50,000 shares
(December 31, 2018: 651,000 shares) 3,925 56,898
Shares disposed off during the period: 25,000 shares
(December 31, 2018: 275,000 shares) 2,100 24,873
Bonus shares issued: nil shares
(December 31, 2018: 12,541 shares) - 1,053
Profit on saving account 2,102 661
Dividend income 1,082 188

Central Depository Company of Pakistan Limited - the Trustee

Remuneration for the period 1,336 1,892
Sindh Sales Tax on trustee fee for the period 174 246
CDS charges 45 23

Directors and Executives of the Management Company

Units issued: 20,696 units (December 31, 2018: 1,626 units) 843 72
Units redeemed: 7,386 units (December 31, 2018: Nil units) 260 -

11. ALLOCATED EXPENSES

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).

Until June 19, 2019 there was a maximum cap of 0.1% of the average annual net assets of the scheme or actual
whichever is less, for allocation of such expense to the Fund. However, the SECP vide its SRO 639 dated June 20,
2019 removed the maximum cap of 0.1%.

The management company based on its own discretion has currently fixed a maximum capping of 0.1% of the average
annual net assets of the scheme for allocation of such expenses to the Fund.
 8

12. TAXATION

The Fund's income is exempt from income tax as per clause (99) of part I of the Second Schedule to the Income Tax
Ordinance, 2001 subject to the condition that not less than 90 percent of the accounting income for the year as
reduced by capital gains, whether realised or unrealised, is distributed amongst the unitholders. Furthermore, as per
regulation 63 of the NBFC Regulations, the Fund is required to distribute 90 percent of the net accounting income
other than capital gains to the unit holders. The Fund has not recorded any tax liability in respect of income relating to
the current period as the Management Company intends to distribute atleast 90 percent of the Fund's accounting
income for the year ending June 30, 2020 as reduced by capital gains (whether realised or unrealised) to its unit
holders.

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.

13. TOTAL EXPENSE RATIO

The Total Expense Ratio (TER) of the Fund for the period ended December 31, 2019 is 3.54% which include 0.98%
representing government levy, Sindh Workers' Welfare Fund and SECP fee.

14. SELLING AND MARKETING EXPENSES

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) initially for a period of three years (i.e from January 1, 2017 till
December 31, 2019). The maximum cap of selling and marketing expense was 0.4% per annum of the net assets of
the Fund or actual expenses whichever is lower.

During the current period, the SECP through its circular 11 dated July 5, 2019 has revised the conditions for charging
of selling and marketing expenses to a Fund. As per the revised guidelines, the maximum cap of 0.4% per annum has
been lifted and now the asset management company is required to set a maximum limit for charging of such expense
to the Fund and the same should be approved by the Board as part of annual plan. Furthermore, the time limit of three
years has also been removed in the revised conditions.

Accordingly, the management company based on its own discretion has currently determined a capping of 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.

15. FAIR VALUE OF FINANCIAL INSTRUMENTS

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.

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).
 9

As at December 31, 2019, the Fund held the following financial instruments measured at fair values:

As at December 31, 2019

Level 1 Level 2 Level 3 Total
ASSETS --------------------------------------- (Rupees in '000) ---------------------------------------

Financial assets 'at fair value through profit or loss'

Shares of listed compnaies 'ordinary shares' 1,355,616 - - 1,355,616

As at June 30, 2019

Level 1 Level 2 Level 3 Total
ASSETS --------------------------------------- (Rupees in '000) ---------------------------------------

Financial assets 'at fair value through profit or loss'

Shares of listed companies 'ordinary shares' 1,448,626 - - 1,448,626

16. GENERAL

16.1 Figures have been rounded off to the nearest thousand rupees.

16.2 Corresponding figures have been rearranged and reclassified, wherever necessary, for the purpose of better
presentation. No significant rearrangements or reclassifications were made in these condensed interim financial
statements during the period.

17. DATE OF AUTHORISATION FOR ISSUE

February 10, 2020
17.1 These condensed interim financial statements were authorised for issue on ____________by the Board of Directors of
the Management Company.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
 BUILDING ON THE VALUES OF
Meezan
Dedicated Equity Fund
GROWTH IN THE CITY OF FLOWERS

MEEZAN DEDICATED
EQUITY FUND (MDEF)
Meezan Dedicated Equity Fund aims to provide Fund of
Funds scheme a dedicated platform to seek long term
capital appreciation.
ISLAMIA
COLLEGE
(PESHAWAR)

Peshawar Branch
 BUILDING ON THE VALUES OF
Meezan
Dedicated Equity Fund
GROWTH IN THE CITY OF FLOWERS

MEEZAN DEDICATED
EQUITY FUND (MDEF)
Meezan Dedicated Equity Fund aims to provide Fund of
Funds scheme a dedicated platform to seek long term
capital appreciation.
ISLAMIA
COLLEGE
(PESHAWAR)

Peshawar Branch
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. Mohammad Shoaib, CFA Chief Executive Officer
Mr. Muhammad Abdullah Ahmed Nominee Director - MBL
Mr. Mohammad Furquan R Kidwai Independent Director
Mr. ljaz Farooq Nominee Director - MBL
Mr. Moin M. Fudda Independent Director
Ms. Saima Kamila Khan Independent Director
Mr. Arshad Majeed Nominee Director - MBL
Mr. Naeem Abdul Sattar Nominee Director - PKIC
Syed Amir Ali Zaidi Nominee Director – PKIC

CFO & COMPANY SECRETARY OF THE MANAGEMENT COMPANY

Syed Owais Wasti

AUDIT COMMITTEE
Mr. Moin M. Fudda Chairman
Mr. Arshad Majeed Member
Mr. Naeem Abdul Sattar Member

RISK MANAGEMENT COMMITTEE

Mr. Muhammad Abdullah Ahmed Chairman
Syed Amir Ali Zaidi Member
Mr. Naeem Abdul Sattar Member

HUMAN RESOURSE & REMUNERATION COMMITTEE

Mr. Moin M. Fudda Chairman
Mr. Ariful Islam Member
Mr. Naeem Abdul Sattar 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

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
3rd & 4th Floor, 68-C, Lane-13, Bokhari Commercial Area,
Phase VI, DHA, Karachi.
Phone (9221) 35156191-94 Fax: (9221) 35156195
E-mail:

TRANSFER AGENT
Meezan Bank Limited
Meezan House
C-25, Estate Avenue, SITE, Karachi.
Phone: 38103538 Fax: 36406017
Website: www.meezanbank.com

DISTRIBUTORS
Al Meezan Investment Management Limited
Meezan Bank Limited
MEEZAN DEDICATED EQUITY FUND
CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES
AS AT DECEMBER 31, 2019

December 31, June 30,

2019 2019
(Unaudited) (Audited)
Note (Rupees in '000)
Assets
Balances with banks 5 26,779 110,688
Investments 6 1,226,236 1,658,927
Receivable against sale of investments 4,458 -
Receivable against conversion of units 5,000 -
Dividend receivable 31 1,120
Advances, prepayments and other receivables 4,063 1,886
Total assets 1,266,567 1,772,621

Liabilities
Payable to Al Meezan Investment Management Limited - the Management Company 3,614 5,286
Payable to Central Depository Company of Pakistan Limited - the Trustee 218 263
Payable to the Securities and Exchange Commission of Pakistan 8 124 1,864
Payable against purchase of investments 1,002 -
Payable against redemption and conversion of units - 1,500
Accrued expenses and other liabilities 9 6,165 2,634
Total liabilities 11,123 11,547

Net assets 1,255,444 1,761,074

Contingencies and commitments 7

Unit holders’ fund (as per statement attached) 1,255,444 1,761,074

(Number of units)

Number of units in issue 29,696,644 49,596,421

(Rupees)

Net asset value per unit 42.2756 35.5081

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN DEDICATED EQUITY FUND
CONDENSED INTERIM INCOME STATEMENT (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

Six months period ended Quarter ended

December 31, December 31,
Note 2019 2018 2019 2018
(Rupees in '000) (Rupees in '000)
Income
Net realised (loss) / income on sale of investments (51,990) (56,292) 17,906 (49,800)
Dividend income 38,749 42,052 19,852 23,731
Profit on saving accounts with banks 5,330 1,785 1,478 1,188
Other income 500 - -
(7,411) (12,455) 39,236 (24,881)
Net unrealised appreciation / (diminution) on re-measurement
of investments 'at fair value through profit or loss' 6.1 169,571 (254,016) 242,026 (179,695)

Total income / (loss) 162,160 (266,471) 281,262 (204,576)

Expenses
Remuneration of Al Meezan Investment Management
Limited - the Management Company 12,057 19,904 5,626 10,273
Sindh Sales Tax on remuneration of the Management Company 1,567 2,587 731 1,335
Remuneration of Central Depository Company of Pakistan
Limited - the Trustee 1,109 1,499 536 765
Sindh Sales Tax on remuneration of Trustee 144 195 69 100
Annual fee to the Securities and Exchange Commission of
Pakistan 8 124 945 56 488
Auditors' remuneration 304 153 247 83
Fees and subscription 283 281 143 140
Brokerage expenses 1,797 1,539 1,057 1,141
Bank and settlement charges 119 163 81 55
Allocated expenses 11 603 995 281 513
Selling and marketing expenses 12 2,411 3,981 1,125 2,055
Charity expense 1,034 651 502 417
Provision for Sindh Workers' Welfare Fund (SWWF) 2,812 - 2,812 -
Printing expenses 10 20 - 10
Total expenses 24,374 32,913 13,266 17,375

Net income / (loss) for the period before taxation 137,786 (299,384) 267,996 (221,951)

Taxation 14 - - - -

Net income / (loss) for the period after taxation 137,786 (299,384) 267,996 (221,951)

Allocation of net income for the period

Net income for the period after taxation 137,786 -
Income already paid on units redeemed - -
137,786 -
Accounting income available for distribution
- Relating to capital gains 117,581 -
- Excluding capital gains 20,205 -
137,786 -

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN DEDICATED EQUITY FUND
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

Six months period ended Quarter ended

December 31, December 31,
2019 2018 2019 2018
(Rupees in '000) (Rupees in '000)

Net income / (loss) for the period after taxation 137,786 (299,384) 267,996 (221,951)

Other comprehensive income for the period - - - -

Total comprehensive income / (loss) for the period 137,786 (299,384) 267,996 (221,951)

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN DEDICATED EQUITY FUND
CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS’ FUND (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

Six months period ended Six months period ended

December 31, 2019 December 31, 2018
Capital Accumu- Capital Accumu-
Total Total
Value lated loss Value lated loss
-------------------------------------------------(Rupees
-------------------------------------------------(Rupees
in '000)-------------------------------------------------
in '000)-------------------------------------

Net assets at the beginning of the period 2,436,503 (675,429) 1,761,074 1,925,907 (69,075) 1,856,832

Issue of 24,274,232 units (2018: 55,468,396 units)

- Capital value (at net asset value per unit at
the beginning of the period) 861,932 861,932 2,692,142 - 2,692,142
- Element of income / (loss) 9,566 9,566 (122,542) - (122,542)
Total proceeds on issuance of units 871,498 - 871,498 2,569,600 - 2,569,600

Redemption of 44,174,009 units (2018: 46,645,906 units)

- Capital value (at net asset value per unit at the
beginning of the period) 1,568,535 1,568,535 2,263,945 - 2,263,945
- Element of income (53,621) (53,621) (116,334) - (116,334)
Total payments on redemption of units 1,514,914 - 1,514,914 2,147,611 - 2,147,611

Total comprehensive income / (loss) for the period 137,786 137,786 - (299,384) (299,384)
Distribution during the period - - - - -
Net income / (loss) for the period less distribution - 137,786 137,786 - (299,384) (299,384)

Net assets at the end of the period 1,793,087 (537,643) 1,255,444 2,347,896 (368,459) 1,979,437

Accumulated loss brought forward

- Realised (loss) / income (336,679) 14,740
- Unrealised loss (338,750) (83,815)
(675,429) (69,075)

Accounting income available for distribution

- Relating to capital gains 117,581 -
- Excluding capital gains 20,205 -
137,786 -
Net loss for the period after taxation - (299,384)

Distribution during the period - -

Accumulated loss carried forward (537,643) (368,459)

Accumulated loss carried forward

- Realised loss (707,214) (114,443)
- Unrealised gain / (loss) 169,571 (254,016)
(537,643) (368,459)

(Rupees) (Rupees)

Net assets value per unit at the beginning of the period 35.5081 48.5347

Net assets value per unit at the end of the period 42.2756 42.0438

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN DEDICATED EQUITY FUND
CONDENSED INTERIM CASH FLOW STATEMENT (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

Six months period ended

December 31,
2019 2018
(Rupees in '000)
CASH FLOWS FROM OPERATING ACTIVITIES

Net income / (loss) for the period before taxation 137,786 (299,384)

Adjustments for
Net unrealised appreciation / (diminution) on re-measurement of investments
classified as 'financial assets at fair value through profit or loss' (169,571) 254,016
(31,785) (45,368)
Decrease / (Increase) in assets
Investments - net 602,262 (293,785)
Dividend receivable 1,089 (1,626)
Receivable against sale of investments (4,458) (27,909)
Advances, prepayments and other receivables (2,177) 946
596,716 (322,374)
Increase in liabilities
Payable to Al Meezan Investment Management Limited - Management Company (1,672) 3,488
Payable to Central Depository Company of Pakistan Limited - Trustee (45) 326
Payable to Securities and Exchange Commission of Pakistan (1,740) 23
Payable against purchase of investments 1,002 (2,530)
Accrued expenses and other liabilities 3,531 550
1,076 1,857

Net cash generated from / (used in) operating activities 566,007 (365,885)

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts against issuance of units and conversion of units 866,498 2,569,600

Payments against redemption of units and conversion of units (1,516,414) (2,147,611)
Net cash (used in) / generated from financing activities (649,916) 421,989

Net (decrease) / increase in cash and cash equivalents during the period (83,909) 56,104
Cash and cash equivalents at the beginning of the period 110,688 122,500

Cash and cash equivalents at the end of the period 26,779 178,604

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN DEDICATED EQUITY FUND
NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

1. LEGAL STATUS AND NATURE OF BUSINESS

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.
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 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.

1.4 The Management Company has been assigned a quality rating of AM1 by VIS Credit Rating Company Limited dated
December 31, 2019 (2018: AM1 dated December 28, 2018) and by PACRA dated December 28, 2019. The rating
reflects the Company’s experienced management team, structured investment process and sound quality of systems
and processes.

1.5 Title to the assets of the Fund are held in the name of CDC as the Trustee of the Fund.

2. BASIS OF PRESENTATION

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.

3. BASIS OF PREPARATION

3.1 STATEMENT OF COMPLIANCE

These condensed interim 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 Accounting Standard (IAS) 34, Interim Financial Reporting, 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.

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
International Accounting Standard (IAS) 34, Interim Financial Reporting, 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.

The disclosures made in these condensed interim financial statements have, however, been limited based on the
requirements of the International Accounting Standard 34: 'Interim Financial Reporting'. These condensed interim
financial statements do not include all the information and disclosures required in a full set of financial statements and
should be read in conjunction with the annual published audited financial statements of the Fund for the year ended
June 30, 2019.
 2

These condensed interim financial statements are unaudited. However, a limited scope review has been performed by
the statutory auditors. In compliance with Schedule V of the NBFC Regulations, the directors of the Management
Company declare that these condensed interim financial statements give a true and fair view of the state of affairs of
the Fund as at December 31, 2019.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES / ACCOUNTING ESTIMATES, JUDGEMENTS AND RISK

MANAGEMENT

4.1 The accounting policies adopted and the methods of computation of balances used in the preparation of these
condensed interim financial statements are the same as those applied in the preparation of the annual financial
statements of the Fund for the year ended June 30, 2019.

4.2 The preparation of these condensed interim financial statements in conformity with accounting and reporting standards
as applicable in Pakistan require management to make estimates, assumptions and use judgments that affect the
application of policies and reported amounts of assets, liabilities, income and expenses. Estimates, assumptions and
judgments are continually evaluated and are based on historical experience and other factors, including reasonable
expectations of future events. Revisions to accounting estimates are recognised prospectively commencing from the
period of revision. In preparing the condensed interim financial statements, the significant judgments made by
management in applying the Fund’s accounting policies and the key sources of estimation and uncertainty were the
same as those applied to the financial statements as at and for the year ended June 30, 2019. The Fund’s financial
risk management objectives and policies are consistent with those disclosed in the annual audited financial statements
of the Fund for the year ended June 30, 2019.

4.3 Amendments to published accounting and reporting standards that are effective in the current period

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, 2019. However, these do not have any significant impact on the Fund's
operations and, therefore, have not been detailed in these condensed interim financial statements.

4.4 Standards, interpretations and amendments to published accounting and reporting standards that are not yet
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, 2020
- IAS 8 - 'Accounting policies, change in accounting
estimates and errors' (amendment) January 1, 2020

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 new standards, interpretations and amendments to the accounting and reporting standards that are
mandatory for the Fund's annual accounting period beginning on or after July 1, 2020. However, these do not have any
significant impact on the Fund's operations and, therefore, have not been detailed in these condensed interim financial
statements.

December 31, June 30,

2019 2019
(Unaudited) (Audited)
5. BALANCES WITH BANKS Note (Rupees in '000)

In saving accounts 5.1 24,239 109,870

In current accounts 2,540 818
26,779 110,688

5.1 The balances in saving accounts have an expected profit ranging from 3.82% to 13.40% per annum. (June 30, 2019:
3.32 % to 12.35% per annum).

December 31, June 30,

2019 2019
(Unaudited) (Audited)
6. INVESTMENTS Note (Rupees in '000)

Investments - 'at fair value through profit or loss' 6.1 1,226,236 1,658,927
1,226,236 1,658,927
 3

6.1 Investments - 'at fair value through profit or loss'

Percentage in relation to
Paid up
Unrealised
Bonus Carrying Market capital of Percentage
Purchases Sales As at gain /
As at July 1, issue / value as at value as at Net assets investee of total
during the during the December (loss) as at
Name of the investee company 2019 Right December December of the company market
period period 31, 2019 December
shares 31, 2019 31, 2019 fund (with face value of
31, 2019
value of investment
investment)
-------------------------- Number of shares --------------------------
-------------------------- (Rupees in '000) --------------------------
----------------------------------%---------------------------------

Sectors / companies

Automobile Assembler
Ghandhara Industries Limited 19,300 - - 19,300 - - - - - - -
Ghandhara Nissan Limited 158 - - 158 - - - - - - -
Honda Atlas Cars (Pakistan) Limited 300 6,300 - 300 6,300 1,405 1,379 (26) 0.11 - 0.11
Indus Motor Company Limited - 11,560 - - 11,560 13,957 13,429 (528) 1.07 0.01 1.10
Millat Tractors Limited 800 10,000 - 800 10,000 7,285 7,044 (241) 0.56 0.02 0.57
1.74 0.03 1.78
Automobile Parts & Accessories
Agriauto Industries Limited (Note 6.1.1) - 40,000 - - 40,000 8,331 8,000 (331) 0.64 0.28 0.65
0.64 0.28 0.65
Commercial Banks
Bankislami Pakistan Limited - 350,000 - 50,000 300,000 3,225 3,327 102 0.27 0.03 0.27
Meezan Bank Limited (an associate) 575,505 - - 39,500 536,005 46,718 50,990 4,272 4.06 0.04 4.16
4.33 0.07 4.43
Cement
Attock Cement Pakistan Limited 15,200 - - - 15,200 1,085 1,571 486 0.13 0.01 0.13
Cherat Cement Company Limited - 195,000 6,500 145,000 56,500 2,195 2,997 802 0.24 0.03 0.24
D.G. Khan Cement Company Limited 206,100 100,000 - 306,100 - - - - - - -
Fauji Cement Company Limited - 125,000 - 125,000 - - - - - - -
Kohat Cement Company Limited 274,370 50,000 - 153,500 170,870 10,145 13,225 3,080 1.05 0.09 1.08
Lucky Cement Limited 313,650 122,400 - 235,200 200,850 77,895 86,044 8,149 6.85 0.06 7.02
Maple Leaf Cement Factory Limited 400,000 - - 400,000 - - - - - - -
8.27 0.19 8.47
Chemical
Engro Polymer & Chemicals Limited 1,324,644 753,000 - 1,401,000 676,644 20,618 22,471 1,853 1.79 0.07 1.83
ICI Pakistan Limited 51,100 5,000 - 11,800 44,300 24,174 29,896 5,722 2.38 0.05 2.44
Lotte Chemical Pakistan Limited 294,000 800,000 - 1,094,000 - - - - - - -
4.17 0.12 4.27
Engineering
Amreli Steels Limited - 150,000 - 100,000 50,000 1,501 1,806 305 0.14 0.02 0.15
International Industries Limited 38,800 70,000 - 63,800 45,000 4,277 4,988 711 0.40 0.03 0.41
International Steels Limited 255,000 325,000 - 565,000 15,000 663 869 206 0.07 - 0.07
Mughal Iron & Steel Industries Limited - 145,000 - 25,000 120,000 3,684 4,916 1,232 0.39 0.05 0.40
1.00 0.10 1.03
Fertilizer
Engro Corporation Limited 606,830 82,000 - 325,700 363,130 99,868 125,371 25,503 9.99 0.06 10.22
Engro Fertilizers Limited 1,365,000 100,000 - 734,000 731,000 47,458 53,677 6,219 4.28 0.05 4.38
14.27 0.11 14.60
Food And Personal Care
At Tahur Limited 83 - 8 - 91 2 2 - - - -
- - -
Glass And Ceramics
Tariq Glass Industries Limited 142,500 - - 142,500 - - - - - - -
- - -
Oil & Gas Exploration Companies
Mari Petroleum Company Limited 93,360 10,000 6,688 31,480 78,568 76,285 102,932 26,647 8.20 0.06 8.39
Oil & Gas Development Company Limited 1,430,900 201,000 - 792,300 839,600 110,845 119,492 8,647 9.52 0.02 9.74
Pakistan Oilfields Limited 305,560 15,000 - 180,600 139,960 57,038 62,523 5,485 4.98 0.05 5.10
Pakistan Petroleum Limited 1,107,500 244,020 - 677,400 674,120 81,604 92,449 10,845 7.36 0.02 7.55
30.06 0.15 30.78
Oil & Gas Marketing Companies
Attock Petroleum Limited 35,000 30,000 - - 65,000 21,373 24,037 2,664 1.91 0.07 1.96
Hascol Petroleum Limited 326,230 1,424,218 - 839,500 910,948 12,133 24,505 12,372 1.95 0.46 2.00
Pakistan State Oil Company Limited 438,260 175,000 32,112 423,200 222,172 35,286 42,577 7,291 3.39 0.05 3.47
Sui Northern Gas Pipelines Limited 1,231,100 286,000 - 879,000 638,100 46,150 48,604 2,454 3.87 0.10 3.96
Sui Southern Gas Company Limited 9,500 - - 9,500 - - - - - - -
11.12 0.68 11.39

Percentage in relation to
Paid up
Unrealised
Bonus Carrying Market capital of Percentage
Purchases Sales As at gain /
 Hascol Petroleum Limited 326,230 1,424,218 - 839,500 910,948 12,133 24,505 12,372 1.95 0.46 2.00
Pakistan State Oil Company Limited 438,260 175,000 32,112 423,200 222,172 35,286 42,577 7,291 3.39 0.05 3.47
Sui Northern Gas Pipelines Limited 1,231,100 286,000 - 879,000 638,100 46,150 48,604 2,454 3.87 0.10 3.96
Sui Southern Gas Company Limited 9,500 - - 9,500 - - - - - - -
4 11.12 0.68 11.39

Percentage in relation to
Paid up
Unrealised
Bonus Carrying Market capital of Percentage
Purchases Sales As at gain /
As at July 1, issue / value as at value as at Net assets investee of total
during the during the December (loss) as at
Name of the investee company 2019 Right December December of the company market
period period 31, 2019 December
shares 31, 2019 31, 2019 fund (with face value of
31, 2019
value of investment
investment)
-------------------------- Number of shares --------------------------
-------------------------- (Rupees in '000) --------------------------
----------------------------------%---------------------------------

Paper & Board

Cherat Packaging Limited 32,100 - - 32,100 - - - - - - -
Packages Limited 20,350 - - - 20,350 6,116 8,114 1,998 0.65 0.02 0.66
0.65 0.02 0.66
Pharmaceuticals
AGP Limited 233,000 3,000 - 88,500 147,500 10,156 14,654 4,498 1.17 0.05 1.20
Glaxosmithkline Consumer Healthcare 15,000 25,200 - - 40,200 10,129 10,308 179 0.82 0.03 0.84
The Searle Company Limited 218,055 10,000 - 159,000 69,055 10,601 13,034 2,433 1.04 0.03 1.06
3.03 0.11 3.10
Pow er Generation & Distribution
K-Electric Limited (note 6.1.1) 10,961,500 400,000 - 3,607,000 7,754,500 33,985 33,887 (98) 2.70 0.03 2.76
The Hub Pow er Company Limited 1,323,117 131,000 - 525,500 928,617 74,138 86,687 12,549 6.90 0.07 7.07
9.60 0.10 9.83
Refinery
Attock Refinery Limited 1,000 - - 1,000 - - - - - - -
- - -
Technology & Communication
Avanceon Limited 290,300 50,000 - 340,300 - - - - - - -
Netsol Technologies Limited 206,900 104,000 - 143,500 167,400 11,329 11,025 (304) 0.88 0.19 0.90
Systems Limited 102,500 25,000 - 25,000 102,500 10,263 12,741 2,478 1.01 0.08 1.04
1.89 0.27 1.94
Textile Composite
Feroze1888 Mills Limited 236,500 500 - - 237,000 23,906 21,804 (2,102) 1.74 0.06 1.78
Interloop Limited 883,382 - - 90,000 793,382 35,123 46,056 10,933 3.67 0.09 3.76
Nishat Mills Limited 384,400 140,000 - 366,200 158,200 14,019 16,791 2,772 1.34 0.04 1.37
6.75 0.19 6.91
Vanaspati & Allied Industries
Unity Foods Limited 287,376 250,000 - 412,376 125,000 1,700 2,014 314 0.16 0.02 0.16
0.16 0.02 0.16
Right Certificates
Oil And Gas Marketing Companies
Hascol Petroleum Limited * - - 846,920 846,920 - - - - - - -

Total 1,056,665 1,226,236 169,571 100

*The right certificates w ere exercised during the period and the shares are included in the investment in Hascol Petroleum Limited.

6.1.1 All shares have a nominal value of Rs. 10 each except for the shares of K-Electric Limited and Agriauto Industries
Limited which have a nominal value of Rs. 3.50 and Rs. 5 each respectively.

6.2 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.
 5

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 period ended December 31, 2019, 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 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.

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 period were not
withheld by the investee companies.

As at December 31, 2019, the bonus shares of the Fund withheld by certain companies at the time of declaration of
bonus shares amounted to Rs. 0.312 million (June 30, 2019: Rs. 0.23 million).

7. CONTINGENCIES AND COMMITMENTS

There were no contingencies and commitments outstanding as at December 31, 2019 and June 30, 2019.

8. PAYABLE TO THE SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN

In accordance with the NBFC Regulations, a Collective Investment Scheme (CIS) is required to pay annual fee to the
Securities and Exchange Commission of Pakistan (SECP).

Effective from July 1, 2019, the SECP vide SRO No. 685(I)/2019 dated June 28, 2019, revised the rate of annual fee
to 0.02% of net assets, applicable on all categories of CISs. Previously, the rate of annual fee applicable to equity
funds was 0.095%. Accordingly, the Fund has charged SECP Fee at the rate of 0.02% of net assets during the current
period.
Note December 31, June 30,
2019 2019
(Unaudited) (Audited)
9. ACCRUED EXPENSES AND OTHER LIABILITIES (Rupees in '000)

Withholding tax payable 23 5

Printing expenses payable 70 60
Auditors' remuneration payable 225 150
Brokerage payable 722 640
Charity payable 2,050 1,516
Provision for Sindh Worker's Welfare Fund 9.1 2,812 -
Shariah advisor fee payable 263 263
6,165 2,634

9.1 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, is 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 has 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, the MUFAP had 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 (i.e. starting from May 21, 2015).
 6

Had the provision for SWWF not been recorded in the condensed interim financial statements of the Fund during the
period ended December 31, 2019, the net asset value per unit of the Fund as at December 31, 2019 would have been
higher by Re 0.000095 (June 30, 2019: Re nil).

10. TRANSACTIONS WITH CONNECTED PERSONS / RELATED PARTIES

Connected persons include Al Meezan Investment Management Limited being the Management Company, Central
Depository Company of Pakistan Limited being the Trustee, Meezan Bank Limited being the holding company of the
Management Company, Directors and executives of the Management Company, other Funds under the common
management of 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 unitholders holding 10 percent or more of the Fund's net assets.

Transactions with connected persons are in the normal course of business, at contracted rates and terms determined
in accordance with market rates.

Remuneration payable to the management company and the trustee is determined in accordance with the provisions
of the NBFC Rules, the NBFC Regulations and the Trust Deed respectively.

Details of transactions with connected persons and balances with them are as follows:

December 31, June 30,

2019 2019
Balances (Unaudited) (Audited)
(Rupees in '000)
Al Meezan Investment Management Limited - the Management Company
Remuneration payable 2,103 3,013
Sindh Sales Tax payable on management fee 274 392
Selling and marketing expenses payable 1,125 1,723
Allocated expense payable 112 158

Meezan Bank Limited

Balances with bank 11,266 32,482
Profit receivable on saving accounts 104 297
Investment in shares: 536,005 shares (June 30, 2019: 575,505 shares) 50,990 50,164

Central Depository Company of Pakistan Limited - the Trustee

Trustee fee payable 195 233
Sindh Sales Tax on trustee fee payable 23 30
Security deposit 103 103

Meezan Financial Planning Fund of Funds MAAP I

Investment of 1,745,369 units (June 30, 2019: 11,269,149 units) 73,787 400,146

Meezan Strategic Allocation Fund MSAP - I

Investment of 770,786 units (June 30, 2019: 8,724,481 units) 32,585 309,790

Meezan Strategic Allocation Fund MSAP - II

Investment of 1,003,881 units (June 30, 2019: 1,238,827 units) 42,440 43,988

Meezan Strategic Allocation Fund MSAP - III

Investment of 823,461 units (June 30, 2019: 1,980,130 units) 34,812 70,311

Meezan Strategic Allocation Fund MSAP - IV

Investment of 1,296,968 units (June 30, 2019: 1,740,577 units) 54,830 61,805

Meezan Strategic Allocation Fund MSAP - V

Investment of 704,094 units (June 30, 2019: 978,486 units) 29,766 34,744

Meezan Strategic Allocation Fund MCPP-III

Investment of 3,648,043 units (June 30, 2019: 5,644,620 units) 154,223 200,430
 7

December 31, June 30,

2019 2019
(Unaudited) (Audited)
(Rupees in '000)
Meezan Strategic Allocation Fund - II MCPP-IV
Investment of 11,302,621 units (June 30, 2019: 10,044,192 units) 477,825 356,650

Meezan Strategic Allocation Fund - II MCPP-V

Investment of 2,441,386 units (June 30, 2019: 3,081,261 units) 103,211 109,410

Meezan Strategic Allocation Fund - II MCPP-VI

Investment of 2,450,132 units (June 30, 2019: 2,745,310 units) 103,581 97,481

Meezan Strategic Allocation Fund - II MCPP-VII

Investment of 1,557,977 units (June 30, 2019: 1,477,397 units) 65,864 52,460

Meezan Strategic Allocation Fund - II MCPP-VIII

Investment of 969,905 units (June 30, 2019: 518,566 units) 41,003 18,413

Meezan Strategic Allocation Fund - III MCPP-IX

Investment of 982,023 units (June 30, 2019: 153,424 units) 41,516 5,448

Six months period ended

December 31,
2019 2018
Transactions during the period (Unaudited)
(Rupees in '000)
Al Meezan Investment Management Limited - the Management Company
Remuneration for the period 12,057 19,904
Sindh Sales Tax on management fee for the period 1,567 2,587
Allocated expenses 603 995
Selling and marketing expense 2,411 3,981

Meezan Bank Limited

Profit on saving account 3,791 1,182
Shares purchased during the period: nil shares
(December 31, 2018: 520,500 shares) - 45,833
Bonus shares received: nil shares (December 31, 2018: 10,050 shares) - -
Shares sold during the period: 39,500 shares (December 31, 2018: 400,500 shares) 3,024 36,456
Dividend income 1,097 151

Central Depository Company of Pakistan Limited - the Trustee

Remuneration for the period 1,109 1,499
Sindh Sales Tax on trustee fee 144 195
CDS charges 63 58

Meezan Financial Planning Fund of Funds - MAAP - I

Units issued: nil units (December 31, 2018: 602,460 units) - 26,000
Units redeemed: 9,523,780 units (December 31, 2018: 971,806 units) 318,940 45,260

Meezan Financial Planning Fund of Funds MAAP - IV

Units redeemed: nil units (December 31, 2018: 2,136,720 units) - 99,023

Meezan Strategic Allocation Fund MSAP - I

Units issued: nil units (December 31, 2018: 14,059,235 units) - 658,000
Units redeemed: 7,953,695 units (December 31, 2018: 4,253,522 units) 275,200 200,000

Meezan Strategic Allocation Fund MSAP - II

Units redeemed: 234,946 units (December 31, 2018: nil units) 8,300 -
 8

Six months period ended

December 31,
2019 2018
(Unaudited)
(Rupees in '000)
Meezan Strategic Allocation Fund MSAP - III
Units issued: 820,109 units (December 31, 2018: nil units) 32,000 -
Units redeemed: 1,976,778 units (December 31, 2018: nil units) 68,000 -

Meezan Strategic Allocation Fund MSAP - IV

Units issued: 1,884,785 units (December 31, 2018: nil units) 65,000 -
Units redeemed: 2,328,394 units (December 31, 2018: 131,830 units) 87,430 6,220

Meezan Strategic Allocation Fund MSAP - V

Units redeemed: 274,392 units (December 31, 2018: nil units) 9,650 -

Meezan Strategic Allocation Fund MCPP-III

Units issued: 7,554,482 units (December 31, 2018: 10,050,937 units) 258,000 467,200
Units redeemed: 9,551,059 units (December 31, 2018: 9,825,883 units) 316,387 445,872

Meezan Strategic Allocation Fund -II MCPP-IV

Units issued: 6,154,962 units (December 31, 2018: 16,971,845 units) 235,000 1,130,719
Units redeemed: 4,896,533 units (December 31, 2018: 19,214,570 units) 172,090 1,232,232

Meezan Strategic Allocation Fund -II MCPP-V

Units issued: 924,174 units (December 31, 2018: 5,325,304 units) 35,000 245,600
Units redeemed: 1,564,049 units (December 31, 2018: 5,481,406 units) 56,470 251,518

Meezan Strategic Allocation Fund-II MCPP-VI

Units issued: 746,443 units (December 31, 2018: 3,924,601 units) 29,000 184,000
Units redeemed: 1,041,621 units (December 31, 2018: 1,983,046 units) 36,340 92,284

Meezan Strategic Allocation Fund-II MCPP-VII

Units issued: 562,311 units (December 31, 2018: 2,187,362 units) 21,500 98,000
Units redeemed: 481,731 units (December 31, 2018: 318,471 units) 18,030 15,092

Meezan Strategic Allocation Fund-II MCPP-VIII

Units issued: 2,612,441 units (December 31, 2018: nil units) 91,000 -
Units redeemed: 2,161,102 units (December 31, 2018: nil units) 72,829 -

Meezan Strategic Allocation Fund-III MCPP-IX

Units issued: 3,001,530 units (December 31, 2018: nil units) 104,500 -
Units redeemed: 2,172,931 units (December 31, 2018: nil units) 74,750 -

11. ALLOCATED EXPENSES

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).

Until June 19, 2019 there was a maximum cap of 0.1% of the average annual net assets of the scheme or actual
whichever is less, for allocation of such expense to the Fund. However, the SECP vide its SRO 639 dated June 20,
2019 removed the maximum cap of 0.1%.

The management company based on its own discretion has currently fixed a maximum capping of 0.1% of the average
annual net assets of the scheme for allocation of such expenses to the Fund.
 9

12. SELLING AND MARKETING EXPENSES

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) initially for a period of three years (i.e from January 1, 2017 till
December 31, 2019). The maximum cap of selling and marketing expense was 0.4% per annum of the net assets of
the Fund or actual expenses whichever is lower.

During the current period, the SECP through its circular 11 dated July 5, 2019 has revised the conditions for charging
of selling and marketing expenses to a Fund. As per the revised guidelines, the maximum cap of 0.4% per annum has
been lifted and now the asset management company is required to set a maximum limit for charging of such expense
to the Fund and the same should be approved by the Board as part of annual plan. Furthermore, the time limit of three
years has also been removed in the revised conditions.

Accordingly, the management company based on its own discretion has currently determined a capping of 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.

13. TOTAL EXPENSE RATIO

The Total Expense Ratio of the Fund for the half year ended December 31, 2019 is 4.05% which includes 0.81%
representing government levy, Sindh Workers' Welfare Fund and SECP fee.

14. TAXATION

The Fund's income is exempt from income tax as per clause (99) of part I of the Second Schedule to the Income Tax
Ordinance, 2001 subject to the condition that not less than 90 percent of the accounting income for the year as
reduced by capital gains, whether realised or unrealised, is distributed amongst the unit holders. Furthermore, as per
regulation 63 of the NBFC Regulations, the Fund is required to distribute atleast 90 percent of the net accounting
income other than capital gains to the unit holders. The Fund has not recorded any tax liability in respect of income
relating to the current period as the Management Company intends to distribute at least 90 percent of the Fund's
accounting income for the year ending June 30, 2020 as reduced by capital gains (whether realised or unrealised) to
its unit holders.

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.

15. FINANCIAL INSTRUMENTS - FAIR VALUES

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 tradeable in an open market are revalued at 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.

15.1. 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: Fair value measurements using quoted price (unadjusted) in an active market for identical assets or
liabilities.

- Level 2: Fair value measurements using inputs other than quoted prices included within level 1 that are observable
for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

- Level 3: Fair value measurement using inputs for the asset or liability that are not based on observable market data
(i.e. unobservable inputs).
 10

As at December 31, 2019 and June 30, 2019, the Fund held the following financial instruments measured at fair value:

As at December 31, 2019

Level 1 Level 2 Level 3 Total
ASSETS --------------------------------------- (Rupees in '000) ---------------------------------------

Financial assets 'at fair value through profit or loss' 1,226,236 - - 1,226,236

As at June 30, 2019

Level 1 Level 2 Level 3 Total
ASSETS --------------------------------------- (Rupees in '000) ---------------------------------------

Financial assets 'at fair value through profit or loss' 1,658,927 - - 1,658,927

16. GENERAL

16.1 Figures have been rounded off to the nearest thousand rupees.

16.2 Corresponding figures have been reclassified and rearranged in these condensed interim financial statements,
wherever necessary, for the purpose of better presentation. No significant rearrangements or reclassifications were
made in these condensed interim financial statements.

17. DATE OF AUTHORISATION

February 10, 2020
These condensed interim financial statements were authorised for issue on ___________ by the Board of Directors of
the Management Company.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
 REACHING NEW HEIGHTS
Meezan IN THE CITY OF SAINTS
Gold Fund
MEEZAN GOLD FUND (MGF)
Meezan Gold Fund is Pakistan’s first Shariah compliant Gold
Fund. It invests in gold instruments in the most efficient manner,
to provide maximum exposure to prices of Gold in a Shariah TOMB OF SHAH
compliant (Islamic) manner. This is done by investing a significant RUKN-E-ALAM
(MULTAN)
portion of the Fund’s net assets in deliverable gold based
contracts available on the Pakistan Mercantile Index (PMEX).

Multan Branch
 REACHING NEW HEIGHTS
Meezan IN THE CITY OF SAINTS
Gold Fund
MEEZAN GOLD FUND (MGF)
Meezan Gold Fund is Pakistan’s first Shariah compliant Gold
Fund. It invests in gold instruments in the most efficient manner,
to provide maximum exposure to prices of Gold in a Shariah TOMB OF SHAH
compliant (Islamic) manner. This is done by investing a significant RUKN-E-ALAM
(MULTAN)
portion of the Fund’s net assets in deliverable gold based
contracts available on the Pakistan Mercantile Index (PMEX).

Multan Branch
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. Mohammad Shoaib, CFA Chief Executive Officer
Mr. Muhammad Abdullah Ahmed Nominee Director - MBL
Mr. Mohammad Furquan R Kidwai Independent Director
Mr. ljaz Farooq Nominee Director - MBL
Mr. Moin M. Fudda Independent Director
Ms. Saima Kamila Khan Independent Director
Mr. Arshad Majeed Nominee Director - MBL
Mr. Naeem Abdul Sattar Nominee Director - PKIC
Syed Amir Ali Zaidi Nominee Director – PKIC

CFO & COMPANY SECRETARY OF THE MANAGEMENT COMPANY

Syed Owais Wasti

AUDIT COMMITTEE
Mr. Moin M. Fudda Chairman
Mr. Arshad Majeed Member
Mr. Naeem Abdul Sattar Member

RISK MANAGEMENT COMMITTEE

Mr. Muhammad Abdullah Ahmed Chairman
Syed Amir Ali Zaidi Member
Mr. Naeem Abdul Sattar Member

HUMAN RESOURSE & REMUNERATION COMMITTEE

Mr. Moin M. Fudda Chairman
Mr. Ariful Islam Member
Mr. Naeem Abdul Sattar 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

Bank Al Habib Limited- Islamic Banking
Meezan Bank Limited
Sindh Bank Limited
UBL Ameen - 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:

TRANSFER AGENT
Meezan Bank Limited
Meezan House
C-25, Estate Avenue, SITE, Karachi.
Phone: 38103538 Fax: 36406017
Website: www.meezanbank.com

DISTRIBUTORS
Al Meezan Investment Management Limited
Meezan Bank Limited
MEEZAN GOLD FUND
CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES
AS AT DECEMBER 31, 2019
December 31, June 30,
2019 2019
(Unaudited) (Audited)
Note (Rupees in '000)

Assets
Balances with banks 5 46,895 86,014
Investment in gold 6 323,293 364,344
Profit receivable on saving accounts 429 227
Receivable against sale of investments - net 875 3,065
Receivable against conversion of units 182 18,716
Deposits and prepayments 14 11,850
Total assets 371,688 484,216

Liabilities
Payable to Al Meezan Investment Management Limited - the Management Company 870 776
Payable to Central Depository Company of Pakistan Limited - the Trustee 61 131
Payable to the Securities and Exchange Commission of Pakistan 50 224
Payable against conversion and redemption of units 3,438 288
Payable against purchase of investments - net - 684
Payable to Meezan Bank Limited 11 6
Accrued expenses and other liabilities 10 6,405 4,546
Total liabilities 10,835 6,655

Net assets 360,853 477,561

Contingencies and commitments 8

Unit holders' fund (as per statement attached) 360,853 477,561

(Number of units)

Number of units in issue 4,998,947 7,008,422

(Rupees)

Net asset value per unit 72.1858 68.1410

The annexed notes 1 to 18 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN GOLD FUND
CONDENSED INTERIM INCOME STATEMENT (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

Six months period ended, Quarter ended,

December 31, December 31,
2019 2018 2019 2018
Note (Rupees in '000) (Rupees in '000)
Income
Realised gain on sale of investments 6,122 1,812 5,703 2,453
Profit on saving accounts with banks 3,531 772 1,570 395
Price adjustment charges 12 5,183 3,485 2,769 1,838
14,836 6,069 10,042 4,686
Unrealised appreciation / (diminution) on re-measurement
of investment in gold 6 19,331 31,605 (4,991) 36,078
Total income 34,167 37,674 5,051 40,764

Expenses
Remuneration of Al Meezan Investment Management Limited
- the Management Company 2,486 1,340 1,132 691
Sindh Sales Tax on remuneration of Management Company 323 174 147 90
Allocated expenses 9 249 134 114 69
Selling and marketing expenses 15 994 357 452 98
Remuneration of Central Depository Company of Pakistan
Limited - the Trustee 423 228 193 118
Sindh Sales Tax on remuneration of the Trustee 55 30 25 16
Annual fee to the Securities and Exchange Commission of
Pakistan 7 50 101 22 52
Auditors' remuneration 189 198 117 106
Brokerage expense 43 28 26 20
Fees and subscription 174 175 87 87
Bank and settlement charges 548 439 327 286
Custodian expense 2,194 1,190 1,013 621
Provision for Sindh Workers' Welfare Fund (SWWF) 10 529 666 28 666
Printing expenses - 1 - 1
Total expenses 8,257 5,061 3,683 2,921

Net income for the period before taxation 25,910 32,613 1,368 37,843

Taxation 14 - - - -

Net income for the period after taxation 25,910 32,613 1,368 37,843

Allocation of net income for the period

Net income for the period after taxation 25,910 32,613
Income already paid on units redeemed (10,883) (926)
15,027 31,687
Accounting income available for distribution
- Relating to capital gains 25,453 33,417
- Excluding capital gains (10,426) (1,730)
15,027 31,687

The annexed notes 1 to 18 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN GOLD FUND
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

Six months period Quarter ended,

December 31, December 31,
2019 2018 2019 2018
(Rupees in '000) (Rupees in '000)

Net income for the period after taxation 25,910 32,613 1,368 37,843

Other comprehensive income - - - -

Total comprehensive income for the period 25,910 32,613 1,368 37,843

The annexed notes 1 to 18 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN GOLD FUND
CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUND (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

Six months period ended Six months period ended

December 31, 2019 December 31, 2018

Undistributed Accumulated
Capital Value Total Capital Value Total
income loss

----------------(Rupees in '000)-------------- ----------------(Rupees in '000)--------------

Net assets at the beginning of the period 434,630 42,931 477,561 233,180 9,904 243,084

Issue of 2,646,366 units (2018: 3,339,979 units)

- Capital value (at net asset value per unit at the
beginning of the period) 180,326 - 180,326 189,269 - 189,269
- Element of income 11,788 - 11,788 7,287 - 7,287
Total proceeds on issuance of units 192,114 - 192,114 196,556 - 196,556

Redemption of 4,655,841 units (2018: 2,609,569 units)

- Capital value (at net asset value per unit at the
beginning of the period) 317,254 - 317,254 147,878 - 147,878
- Element of loss 6,595 10,883 17,478 1,417 926 2,343
Total payments on redemption of units 323,849 10,883 334,732 149,295 926 150,221

Total comprehensive income for the period - 25,910 25,910 - 32,613 32,613
Distribution during the period - - - - - -
Net income for the period less distribution - 25,910 25,910 - 32,613 32,613

Net assets at the end of the period 302,895 57,958 360,853 280,441 41,591 322,032

Undistributed income brought forward

- Realised (loss) (23,741) (19,027)
- Unrealised income 66,672 28,931
42,931 9,904
Accounting income available for distribution
(after adjusting income already paid on units redeemed)
- Relating to capital gains 25,453 33,417
- Excluding capital gains (10,426) (1,730)
15,027 31,687

Distribution for the period - -

Undistributed income carried forward 57,958 41,591

Undistributed income carried forward

- Realised income 38,627 9,986
- Unrealised income 19,331 31,605
57,958 41,591

(Rupees) (Rupees)
Net assets value per unit at the beginning of the period 68.1410 56.6676
Net assets value per unit at the end of the period 72.1858 64.1490

The annexed notes 1 to 18 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN GOLD FUND
CONDENSED INTERIM CASH FLOW STATEMENT (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

Six months period ended,

December 31,
2019 2018
(Rupees in '000)
CASH FLOWS FROM OPERATING ACTIVITIES

Net income for the period before taxation 25,910 32,613

Adjustments for:
Unrealised appreciation on re-measurement
of investment in gold (19,331) (31,605)

6,579 1,008
Decrease / (Increase) in assets
Investments - net 60,382 (27,272)
Receivable against sale of investments - net 2,190 1,927
Profit receivable on saving accounts (202) (44)
Deposits and prepayments 11,836 (14)
74,206 (25,403)
Increase in liabilities
Payable to Al Meezan Investment Management Limited
- Management Company 94 438
Payable to Central Depository Company of Pakistan Limited - Trustee (70) 10
Payable to the Securities and Exchange Commission of Pakistan (174) (173)
Payable against purchase of investments - net (684) 5,304
Payable to Meezan Bank Limited 5 19
Accrued expenses and other liabilities 1,859 626
1,030 6,224

Net cash generated from / (used in) operating activities 81,815 (18,171)

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts against issuance and conversion of units 210,648 199,842

Payment against conversion and redemption of units (331,582) (150,318)
Net cash (used in) / generated from financing activities (120,934) 49,524

Net (decrease) / increase in cash and cash equivalents during the period (39,119) 31,353
Cash and cash equivalents at the beginning of the period 86,014 29,332

Cash and cash equivalents at the end of the period 5 46,895 60,685

The annexed notes 1 to 18 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN GOLD FUND
NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

1. LEGAL STATUS AND NATURE OF BUSINESS

1.1 Meezan Gold Fund is an open ended mutual fund constituted under a Trust Deed entered into on October 15, 2014
between Al Meezan Investment Management Company as the Management Company and Central Depository
Company of Pakistan Limited as the Trustee. The Management Company of the Fund has been licensed 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 Fund is registered as a Notified
entity under Non-Banking Finance Companies and Notified Entities Regulations, (NBFC Regulations) issued through
S.R.O.1203(I)/2008 on November 21, 2008. The Fund commenced its operations from August 18, 2015. The
registered office of the Management Company is situated at Ground Floor, Block 'B', Finance and Trade Centre,
Shariah-e-Faisal, Karachi 74400, Pakistan.

1.2 The Fund is an open-ended Shariah Compliant (Islamic) Commodity Fund that aims to provide maximum exposure to
prices of Gold in a Shariah Compliant (Islamic) manner by investing a significant portion of the Fund’s net assets in
deliverable gold based contracts available on Pakistan Mercantile Exchange Limited (PMEX). Furthermore, all
investments of the Fund's property shall be in accordance with the Shariah as advised by the Shariah Advisor. The
Fund shall also be subject to the rules and regulations framed by the State Bank of Pakistan with regard to the foreign
investments made by the Fund and investments made in the Fund from outside Pakistan in foreign currency. The
investments in Gold contracts listed at the Commodity Exchange shall be subject to the PMEX Regulations and / or
rules and regulations of the pertinent Commodity Exchange, if the Commodity Exchange is other than PMEX. All
pertinent contracts, agreements and documents of PMEX shall be approved by Shariah advisor. Under the Trust
Deed, all the conducts and acts of the fund are based on Shariah. 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. The investment objectives and policies are explained in the Fund's Offering document.

1.3 The Fund has been categorised as a Shariah compliant Commodity Scheme by the Board of Directors of the
Management Company pursuant to the provisions contained in Circular 7 of 2009. The units of the Fund were initially
offered for public subscription at a par value of Rs 50 per unit. Thereafter, the units are being offered for public
subscription on a continuous basis from August 13, 2015 and are transferable and redeemable by surrendering them
to the Fund.

1.4 The Management Company has been assigned a quality rating of AM1 by VIS Credit Rating Company Limited dated
December 31, 2019 (2018: AM1 dated December 28, 2018) and by PACRA dated December 28, 2019. The rating
reflects the Company’s experienced management team, structured investment process and sound quality of systems
and processes.

1.5 Title to the assets of the Fund are held in the name of Central Depository Company of Pakistan Limited as trustee of
the Fund. The fund is listed on Pakistan Stock Exchange Limited.

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 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.

3. BASIS OF PREPARATION

3.1 STATEMENT OF COMPLIANCE

These condensed interim financial statements have been prepared in accordance with the accounting and reporting
standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards applicable
in Pakistan for interim financial reporting comprise of:

- International Accounting Standard (IAS) 34, Interim Financial Reporting, 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 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, (the NBFC Regulations) and the requirements of
the Trust Deed.
 2

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 with the
requirements of IAS 34, 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.

The disclosures made in these condensed interim financial statements have, however, been limited based on the
requirements of the International Accounting Standard 34: 'Interim Financial Reporting'. These condensed interim
financial statements do not include all the information and disclosures required in a full set of financial statements and
should be read in conjunction with the annual published audited financial statements of the Fund for the year ended
June 30, 2019.

These condensed interim financial statements are unaudited. However, a limited scope review has been performed by
the statutory auditors. In compliance with Schedule V of the NBFC Regulations, the directors of the Management
Company declare that these condensed interim financial statements give a true and fair view of the state of affairs of
the Fund as at December 31, 2019.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, JUDGMENTS AND RISK

MANAGEMENT

4.1 The accounting policies adopted and the methods of computation of balances used in the preparation of these
condensed interim financial statements are the same as those applied in the preparation of the annual financial
statements of the Fund for the year ended June 30, 2019.

4.2 The preparation of these condensed interim financial statements in conformity with accounting and reporting standards
as applicable in Pakistan requires management to make estimates, assumptions and use judgements that affect the
application of policies and reported amounts of assets, liabilities, income and expenses. Estimates, assumptions and
judgements are continually evaluated and are based on historical experience and other factors, including reasonable
expectations of future events. Revisions to accounting estimates are recognized prospectively commencing from the
period of revision. In preparing the condensed interim financial statements, the significant judgements made by
management in applying the Fund’s accounting policies and the key sources of estimation and uncertainty were the
same as those applied to the financial statements as at and for the year ended June 30, 2019. The Fund’s financial
risk management objectives and policies are consistent with those disclosed in the annual financial statements of the
Fund for the year ended June 30, 2019.

4.3 Standards and amendments to published accounting and reporting standards that are effective in the current
period

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, 2019. However, these do not have any significant impact on the Fund's
operations and, therefore, have not been detailed in these condensed interim financial statements.

4.4 Standards, interpretations and amendments to published accounting and reporting standards that are not yet
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, 2020
- IAS 8 - 'Accounting policies, change in accounting
estimates and errors' (amendment) January 1, 2020

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 new standards, interpretations and amendments to the accounting and reporting standards that are
mandatory for the Fund's annual accounting period beginning on or after July 1, 2020. However, these do not have any
significant impact on the Fund's operations and, therefore, have not been detailed in these condensed interim financial
statements.
 3

December 31, June 30,

2019 2019
(Unaudited) (Audited)
5. BALANCES WITH BANKS Note (Rupees in '000)

In saving accounts 5.1 46,801 85,920

In current accounts 94 94
46,895 86,014

5.1 The balance in saving accounts have an expected profit ranging from 3.7% to 13.25% per annum (June 30, 2019:
6.30% to 11.85% per annum).

December 31, June 30,

2019 2019
(Unaudited) (Audited)
6. INVESTMENTS Note (Rupees in '000)

Investment in gold 6.1 323,293 364,344

6.1 Investment in gold

Sales Carrying Market value Percentage in

Purchases As at
As at July during value as at as at Unrealised relation to Net
during December 31,
Commodity 1, 2019 the December 31, December 31, gain assets of the
the period 2019
period 2019 2019 Fund
----------------- (Tola) ----------------- ------------ (Rupees in '000) ------------ --- (%) ---
TOLAGOLD 4,400 1,254 2,032 3,622 302,724 321,960 19,235 89.22%
MITOLA 15,000 - - 15,000 1,238 1,333 95 0.37%
Total as at December 31, 2019 303,962 323,293 19,331
Total as at June 30, 2019 297,672 364,344 66,672

6.1.1 The Pakistan Mercantile Exchange (PMEX) delivers refined Gold in 10 TOLA Bars. These are physically held by
PMEX under their custody in the vaults of a commercial bank.

6.1.2 The investment in gold of Rs 323.293 million (June 30, 2019: Rs 364.344 million) has been measured at fair value
based on the quoted market price in active markets.

7. PAYABLE TO THE SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN

In accordance with the NBFC Regulations, a Collective Investment Scheme (CIS) is required to pay annual fee to the
Securities and Exchange Commission of Pakistan (SECP).

Effective from July 1, 2019, the SECP vide SRO No. 685(I)/2019 dated June 28, 2019 has revised the rate of annual
fee to 0.02% of net assets, applicable on all categories of CISs. Previously, the rate of annual fee applicable to a
Commodity Fund was 0.075%. Accordingly, the Fund has charged SECP Fee at the rate of 0.02% of net assets during
the current period.

8. CONTINGENCIES AND COMMITMENTS

There were no contingencies and commitments outstanding as at December 31, 2019 and June 30, 2019.

9. ALLOCATED EXPENSES

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).

Until June 19, 2019 there was a maximum cap of 0.1% of the average annual net assets of the scheme or actual
whichever is less, for allocation of such expense to the Fund. However, the SECP vide its SRO 639 dated June 20,
2019 removed the maximum cap of 0.1%.

The management company based on its own discretion has currently fixed a maximum capping of 0.1% of the average
annual net assets of the scheme for allocation of such expenses to the Fund.
 4

December 31, June 30,

2019 2019
(Unaudited) (Audited)
10. ACCRUED EXPENSES AND OTHER LIABILITIES Note (Rupees in '000)

Auditor's remuneration 163 175

Custodian fee payable - 257
Provision for Sindh Worker's Welfare Fund (SWWF) 10.1 3,695 3,166
Withholding tax payable 10 21
Capital gain tax payable 1,667 51
Shariah advisory fee payable 159 159
Zakat payable - 6
Provision for Federal Excise Duty and related Sindh Sales Tax
on management fee 10.2 414 414
Provision for Federal Excise Duty and related Sindh Sales Tax
on sales load 10.2 297 297
6,405 4,546

10.1 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 on a prudent basis 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 condensed interim financial statements of the Fund for the
period from May 21, 2015 to December 31, 2019, the net asset value per unit of the Fund as at December 31, 2019
would have been higher by Re 0.74 per unit (June 30, 2019: Re 0.45 per unit)

10.2 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 0.71 million is being retained in the
condensed interim 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, 2019 would have been
higher by Re 0.14 (June 30, 2019: Re 0.10) per unit.
 5

11. TOTAL EXPENSE RATIO

The Total Expense Ratio (TER) of the Fund as at December 31, 2019 is 3.32% which includes 0.39% representing
government levies on the Fund such as provision for Sindh Workers' Welfare Fund (if any), sales taxes, annual fee to
the SECP, etc. (June 30, 2019: 3.78% and 0.80%). This ratio is within the maximum limit of 3% (excluding government
levies) prescribed under the NBFC Regulations for a collective investment scheme categorised as a Commodity
Scheme.

12. PRICE ADJUSTMENT CHARGES

Securities and Exchange Commission of Pakistan (SECP) vide Circular no.40 SCD/AMCW/ MGF/63/2017 dated June
14, 2017, allowed the fund to charge price adjustment charges. Price adjustment charge is a difference between the
offer price and the bid price from the closing price of the Gold transactions (contract) available at PMEX, which is
added to and deducted from the NAV to determine Offer and Redemption prices respectively. Such charges form part
of Fund Property.

Currently, price adjustment charges added / deducted to form NAV of the fund to determine offer / redemption price is
1% of NAV.

13. TRANSACTIONS WITH CONNECTED PERSONS / RELATED PARTIES

Connected persons include Al Meezan Investment Management Limited being the Management Company, Central
Depository Company of Pakistan Limited being the Trustee, Meezan Bank Limited being the holding company of the
Management Company, Directors and Executives of the Management Company, other Funds under the common
management of 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 are in the normal course of business, at contracted rates and terms determined
in accordance with market rates.

Remuneration payable to the Management Company and the Trustee is determined in accordance with the provisions
of the NBFC Regulations and the Trust Deed.

Details of transactions with connected persons and balances with them are as follows:

December 31, June 30,

2019 2019
(Unaudited) (Audited)
(Rupees in '000)
Al Meezan Investment Management Limited - the Management Company
Remuneration payable 321 297
Sindh Sales Tax on management fee payable 42 39
Sales load payable 20 29
Sindh Sales Tax on sales load payable 3 4
Selling and marketing expenses payable 452 373
Allocated expenses payable 32 30

Meezan Bank Limited

Bank balance 13,868 38,321
Sales load payable 10 5
Sindh sales tax on sales load payable 1 1
Profit receivable on saving account 106 11
Investment of 1,084,712 units (June 30, 2019: 1,084,712 units) 78,301 75,548

Central Depository Company of Pakistan Limited - the Trustee

Trustee fee payable 54 116
Sindh Sales Tax on trustee fee payable 7 15

Directors and Executives of the Management Company

Investment of 322,918 units (June 30, 2019: 284,312 units) 23,310 19,374

Unitholders holding 10% or more units of the Fund

Investment of 1,245,353 units (June 30, 2019: 1,236,347 units) 89,897 84,246
 6

Six months period ended,

December 31,
2019 2018
(Unaudited)
(Rupees in '000)
Al Meezan Investment Management Limited - the Management Company
Remuneration for the period 2,486 1,340
Sindh Sales Tax on management fee for the period 323 174
Allocated expenses 249 134
Selling and marketing expense 994 357

Meezan Bank Limited

Profit on saving account 977 197

Central Depository Company of Pakistan Limited - the Trustee

Remuneration for the period 423 228
Sindh Sales Tax on trustee fee for the period 55 30

Directors and Executives of the Management Company

Units issued: 146,550 units (December 31, 2018: 57,616 units) 10,665 3,608
Units redeemed: 107,944 units (December 31, 2018: 27,814 units) 7,698 1,564

14. TAXATION

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% 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. No provision for taxation has been made in
these condensed interim financial statements during the period since the net income of the fund only pertains to capital
gains (realised and unrealised).

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 Finance Act, 2015 is also not
applicable on funds as Section 4B of Income Tax Ordinance, 2001.

15. SELLING AND MARKETING EXPENSES

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) initially for a period of three years (i.e from January 1, 2017 till
December 31, 2019). The maximum cap of selling and marketing expense was 0.4% per annum of the net assets of
the Fund or actual expenses whichever is lower.

During the current period, the SECP through its circular 11 dated July 5, 2019 has revised the conditions for charging
of selling and marketing expenses to a Fund. As per the revised guidelines, the maximum cap of 0.4% per annum has
been lifted and now the asset management company is required to set a maximum limit for charging of such expense
to the Fund and the same should be approved by the Board as part of annual plan. Furthermore, the time limit of three

Accordingly, the management company based on its own discretion has currently determined a capping of 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.

16. FAIR VALUE OF FINANCIAL INSTRUMENTS

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.
 7

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.

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).

Investments in gold are non-financial assets and the fair value is disclosed in note 6.1 to these financial statements.

As at December 31, 2019, the Fund does not hold any asset which required fair valuation.

17. GENERAL

17.1 Figures have been rounded off to the nearest thousand rupees.

17.2 Corresponding figures have been rearranged and reclassified, wherever necessary, for the purpose of better
presentation. No significant rearrangements or reclassifications were made in these condensed interim financial
statements during the period.

18. DATE OF AUTHORISATION FOR ISSUE

February 10, 2020
These condensed interim financial statements were authorised for issue on _______ by the Board of Directors of the
Management Company.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
 REDEFINING INVESTMENT
Meezan
Islamic Income Fund
IN THE CITY OF LIGHTS

MEEZAN ISLAMIC INCOME

FUND (MIIF) QUAID’S MAUSOLEUM
(KARACHI)
Meezan Islamic Income Fund is Pakistan’s first Shariah
compliant income fund scheme. The purpose of Meezan
Islamic Income Fund is to provide investors with a high
and stable rate of current income consistent with long
term preservation of capital in a Shariah compliant way.

Bahadurabad Branch
Clifton Branch
DHA Branch
DHA Badar Commercial Branch
FTC Branch
Gulshan-E-Iqbal Branch
Gulistan-E-Jauhar Branch
North Nazimabad Branch
Sales Hub Karachi
Site Area Branch
 REDEFINING INVESTMENT
Meezan
Islamic Income Fund
IN THE CITY OF LIGHTS

MEEZAN ISLAMIC INCOME

FUND (MIIF) QUAID’S MAUSOLEUM
(KARACHI)
Meezan Islamic Income Fund is Pakistan’s first Shariah
compliant income fund scheme. The purpose of Meezan
Islamic Income Fund is to provide investors with a high
and stable rate of current income consistent with long
term preservation of capital in a Shariah compliant way.

Bahadurabad Branch
Clifton Branch
DHA Branch
DHA Badar Commercial Branch
FTC Branch
Gulshan-E-Iqbal Branch
Gulistan-E-Jauhar Branch
North Nazimabad Branch
Sales Hub Karachi
Site Area Branch
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. Mohammad Shoaib, CFA Chief Executive Officer
Mr. Muhammad Abdullah Ahmed Nominee Director - MBL
Mr. Mohammad Furquan R Kidwai Independent Director
Mr. ljaz Farooq Nominee Director - MBL
Mr. Moin M. Fudda Independent Director
Ms. Saima Kamila Khan Independent Director
Mr. Arshad Majeed Nominee Director - MBL
Mr. Naeem Abdul Sattar Nominee Director - PKIC
Syed Amir Ali Zaidi Nominee Director – PKIC

CFO & COMPANY SECRETARY OF THE MANAGEMENT COMPANY

Syed Owais Wasti

AUDIT COMMITTEE
Mr. Moin M. Fudda Chairman
Mr. Arshad Majeed Member
Mr. Naeem Abdul Sattar Member

RISK MANAGEMENT COMMITTEE

Mr. Muhammad Abdullah Ahmed Chairman
Syed Amir Ali Zaidi Member
Mr. Naeem Abdul Sattar Member

HUMAN RESOURSE & REMUNERATION COMMITTEE

Mr. Moin M. Fudda Chairman
Mr. Ariful Islam Member
Mr. Naeem Abdul Sattar 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:

TRANSFER AGENT
Meezan Bank Limited
Meezan House
C-25, Estate Avenue, SITE, Karachi.
Phone: 38103538 Fax: 36406017
Website: www.meezanbank.com

DISTRIBUTORS
Al Meezan Investment Management Limited
Meezan Bank Limited
MEEZAN ISLAMIC INCOME FUND
CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES
AS AT DECEMBER 31, 2019

December 31, June 30,

2019 2019
(Unaudited) (Audited)
Note (Rupees in '000)
Assets
Balances with banks 5 14,103,145 2,971,017
Investments 6 7,190,083 6,454,219
Receivable against conversion of units 102,645 3,802
Deposits, prepayments, profit accrued and other receivables 294,127 258,982
Total assets 21,690,000 9,688,020

Liabilities
Payable to Al Meezan Investment Management Limited - the Management Company 41,983 19,857
Payable to Central Depository Company of Pakistan Limited - the Trustee 7 1,509 838
Payable to the Securities and Exchange Commission of Pakistan 8 1,678 7,822
Payable to Meezan Bank Limited 710 399
Payable against redemption and conversion of units 86,472 45,063
Accrued expenses and other liabilities 9 119,482 142,719
Total liabilities 251,834 216,698

Net assets 21,438,166 9,471,322

Contingencies and commitments 10

Unit holders’ fund (as per statement attached) 21,438,166 9,471,322

(Number of units)

Number of units in issue 392,971,639 184,135,657

(Rupees)

Net asset value per unit 54.5540 51.4367

The annexed notes 1 to 18 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN ISLAMIC INCOME FUND
CONDENSED INTERIM INCOME STATEMENT (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

Six months period ended Quarter ended

December 31, December 31,
2019 2018 2019 2018
Note (Rupees in '000) (Rupees in '000)
Income
Profit on saving accounts with banks 665,454 152,486 396,485 84,520
Profit on term deposit receipts - 18,424 - 4,683
Profit on certificates of musharakah 45,482 48,902 21,011 32,722
Profit on sukuk certificates 420,992 196,344 232,678 108,944
Net realised gain / (loss) on sale of sukuk certificates 20,841 (15,508) 15,479 (10,040)
Other income 1,129 1,384 54 1,020
1,153,898 402,032 665,707 221,849
Net unrealised (diminution) / appreciation on
re-measurement of investments classified as
'financial assets at fair value through profit or loss' 6.1.2 (4,167) 812 2,776 14,504
Total income 1,149,731 402,844 668,483 236,353

Expenses
Remuneration of Al Meezan Investment Management Limited
- the Management Company 74,733 40,284 43,452 23,635
Sindh Sales Tax on remuneration of the Management Company 9,715 5,237 5,648 3,073
Allocated expenses 12 12,269 5,152 7,134 2,602
Selling and marketing expense 13 33,565 - 19,024 -
Remuneration of Central Depository Company of Pakistan
Limited - the Trustee 7 6,293 4,413 3,566 2,225
Sindh Sales Tax on remuneration of the trustee 818 574 464 290
Annual fee to the Securities and Exchange Commission
of Pakistan 8 1,678 3,864 951 1,952
Auditors' remuneration 399 414 231 215
Fees and subscription 706 713 354 352
Brokerage expense 140 224 74 84
Bank and settlement charges 424 161 295 128
Provision for Sindh Workers' Welfare Fund (SWWF) 9.1 20,180 6,831 11,746 4,034
Printing expense - 277 - 137
Total expenses 160,920 68,144 92,939 38,727

Net income for the period before taxation 988,811 334,700 575,544 197,626

Taxation 15 - - - -

Net income for the period after taxation 988,811 334,700 575,544 197,626

Allocation of net income for the period

Net income for the period after taxation 988,811 334,700
Income already paid on units redeemed (218,195) (83,446)
770,616 251,254
Accounting income available for distribution
- Relating to capital gains 16,674 -
- Excluding capital gains 753,942 251,254
770,616 251,254

The annexed notes 1 to 18 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN ISLAMIC INCOME FUND
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

Six months period ended Quarter ended,

December 31, December 31,
2019 2018 2019 2018
(Rupees in '000) (Rupees in '000)

Net income for the period after taxation 988,811 334,700 575,544 197,626

Other comprehensive income - - - -

Total comprehensive income for the period 988,811 334,700 575,544 197,626

The annexed notes 1 to 18 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN ISLAMIC INCOME FUND
CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS’ FUND (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

Six months period ended Six months period ended

December 31, 2019 December 31, 2018
Undistributed Undistributed
Capital Value Total Capital Value Total
income income
(Rupees in '000) (Rupees in '000)

Net assets at the beginning of the period 9,297,919 173,403 9,471,322 9,755,035 410,879 10,165,914

Issuance of 489,953,776 units (2018: 183,246,418 units)

- Capital value (at net asset value per unit at the
beginning of the period) 25,201,605 - 25,201,605 9,417,290 - 9,417,290
- Element of income 683,933 - 683,933 160,655 - 160,655
Total proceeds on issuance of units 25,885,538 - 25,885,538 9,577,945 - 9,577,945

Redemption of 281,117,794 units (2018: 167,220,566 units)

- Capital value (at net asset value per unit at the
beginning of the period) 14,459,772 14,459,772 8,593,699 - 8,593,699
- Element of loss 229,538 218,195 447,733 60,806 83,446 144,252
Total payments on redemption of units 14,689,310 218,195 14,907,505 8,654,505 83,446 8,737,951

Total comprehensive income for the period - 988,811 988,811 - 334,700 334,700
Distribution during the period - - - - (245,803) (245,803)
Refund of capital - - - (170,684) - (170,684)
988,811 988,811 (170,684) 88,897 (81,787)

Net assets at the end of the period 20,494,147 944,019 21,438,166 10,507,791 416,330 10,924,121

Undistributed income brought forward

- Realised income 192,274 396,375
- Unrealised (loss) / income (18,871) 14,504
173,403 410,879
Accounting income available for distribution
(after adjusting income already paid on units redeemed)
- Relating to capital gains 16,674 -
- Excluding capital gains 753,942 251,254
770,616 251,254

Distribution during the period nil [(2018: at Rs. 2.1954 per unit)
i.e. 4.39% of the par value of Rs. 50/- each (July 6, 2018)] - (245,803)

Undistributed income carried forward 944,019 416,330

Undistributed income carried forward

- Realised income 948,186 415,518
- Unrealised (loss) / income (4,167) 812
944,019 416,330

(Rupees) (Rupees)

Net assets value per unit at the beginning of the period 51.4367 53.5868

Net assets value per unit at the end of the period 54.5540 53.0980

The annexed notes 1 to 18 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN ISLAMIC INCOME FUND
CONDENSED INTERIM CASH FLOW STATEMENT (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

Six months period ended

December 31,
2019 2018
Note (Rupees in '000)
CASH FLOWS FROM OPERATING ACTIVITIES

Net income for the period before taxation 988,811 334,700

Adjustments for
Net unrealised diminution / (appreciation) on
re-measurement of investments classified as
'financial assets at fair value through profit or loss' 4,167 (812)

992,978 333,888
(Increase) / decrease in assets
Investments - net (740,031) 64,278
Deposits, prepayments, profit accrued and other receivables (35,145) (21,295)
(775,176) 42,983
(Decrease) / Increase in liabilities
Payable to Al Meezan Investment Management Limited - the Management Company 22,126 4,348
Payable to Central Depository Company of Pakistan Limited - the Trustee 671 85
Payable to the Securities and Exchange Commission of Pakistan (6,144) (4,344)
Payable to Meezan Bank Limited 311 (1,332)
Accrued expenses and other liabilities (23,237) 14,476
(6,273) 13,233

Net cash generated from operating activities 211,529 390,104

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts against issuance and conversion of units 25,786,695 9,460,503

Payments against redemption and conversion of units (14,866,096) (8,752,195)
Dividend paid - (245,803)
Net cash generated from financing activities 10,920,599 462,505

Net increase in cash and cash equivalents during the period 11,132,128 852,609
Cash and cash equivalents at the beginning of the period 2,971,017 4,070,871

Cash and cash equivalents at the end of the period 5 14,103,145 4,923,480

The annexed notes 1 to 18 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN ISLAMIC INCOME FUND
NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

1. LEGAL STATUS AND NATURE OF BUSINESS

1.1 Meezan Islamic Income 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 September 13, 2006 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) notified through S.R.O. 1203 (I) / 2008 on November 21, 2008. The
Management Company has been licensed by the 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, Shahrah-e-Faisal, Karachi 74400,
Pakistan.

1.2 The Fund has been formed to provide the unitholders 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.
Under the Trust Deed all conducts and acts of the Fund are based on Shariah principles. Meezan Bank Limited acts
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 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 categorised as
an Open End Shariah Compliant (Islamic) Income Scheme in accordance with Circular 7 of 2009 issued by the SECP.

1.4 The Management Company has been assigned a quality rating of AM1 by VIS Credit Rating Company Limited dated
December 31, 2019 (2018: AM1 dated December 28, 2018) and by PACRA dated December 28, 2019. The rating
reflects the Company’s experienced management team, structured investment process and sound quality of systems
and processes. The Fund has been given a stability rating of A(f) by VIS Credit Rating Company Limited.

1.5 Title to the assets of the Fund are in the name of CDC as the Trustee of the Fund.

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 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.

3. BASIS OF PREPARATION

3.1 STATEMENT OF COMPLIANCE

These condensed interim financial statements have been prepared in accordance with the accounting and reporting
standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards applicable
in Pakistan for interim financial reporting comprise of:

- International Accounting Standard (IAS) 34, Interim Financial Reporting, 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 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, (the NBFC Regulations) and the requirements of
the Trust Deed.

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 with the
requirements of IAS 34, 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.
 2

The disclosures made in these condensed interim financial statements have, however, been limited based on the
requirements of the International Accounting Standard 34: 'Interim Financial Reporting'. These condensed interim
financial statements do not include all the information and disclosures required in a full set of financial statements and
should be read in conjunction with the annual published audited financial statements of the Fund for the year ended
June 30, 2019.

These condensed interim financial statements are unaudited. However, a limited scope review has been performed by
the statutory auditors. In compliance with Schedule V of the NBFC Regulations, the directors of the Management
Company declare that these condensed interim financial statements give a true and fair view of the state of affairs of
the Fund as at December 31, 2019.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, JUDGMENTS AND RISK

MANAGEMENT

4.1 The accounting policies adopted and the methods of computation of balances used in the preparation of these
condensed interim financial statements are the same as those applied in the preparation of the annual financial
statements of the Fund for the year ended June 30, 2019.

4.2 The preparation of the condensed interim financial statements in conformity with accounting and reporting standards
as applicable in Pakistan requires management to make estimates, assumptions and use judgments that affect the
application of policies and reported amounts of assets, liabilities, income and expenses. Estimates, assumptions and
judgments are continually evaluated and are based on historical experience and other factors, including reasonable
expectations of future events. Revisions to accounting estimates are recognised prospectively commencing from the
period of revision. In preparing the condensed interim financial statements, the significant judgments made by
management in applying the Fund’s accounting policies and the key sources of estimation and uncertainty were the
same as those applied to the financial statements as at and for the year ended June 30, 2019. The Fund’s financial
risk management objectives and policies are consistent with those disclosed in the annual financial statements of the
Fund for the year ended June 30, 2019.

4.3 Amendments to published accounting and reporting standards that are effective in the current period

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, 2019. However, these do not have any significant impact on the Fund's
operations and, therefore, have not been detailed in these condensed interim financial statements.

4.4 Standards, interpretations and amendments to published accounting and reporting standards that are not yet
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, 2020
- IAS 8 - 'Accounting policies, change in accounting
estimates and errors' (amendment) January 1, 2020

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 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, 2020. However, these do not have any significant
impact on the Fund's operations and, therefore, have not been detailed in these condensed interim financial
statements.

December 31, June 30,

2019 2019
(Unaudited) (Audited)
5. BALANCES WITH BANKS Note (Rupees in '000)

In saving accounts 5.1 14,103,101 2,970,973

In current accounts 44 44
14,103,145 2,971,017

5.1 The balance in saving accounts have an expected profit ranging from 3.00% to 13.50% per annum (June 30, 2019:
3.32% to 12.50% per annum).
 3

December 31, June 30,

2019 2019
(Unaudited) (Audited)
Note (Rupees in '000)
6. INVESTMENTS

Investments - 'at fair value through profit or loss'

Sukuk certificates 6.1 4,223,218 4,277,722
Certificates of Musharakah 6.2 600,000 750,000
Commercial papers 6.3 2,366,865 1,426,497
7,190,083 6,454,219

6.1 Sukuk Certificates

Government securities 6.1.1 - 600,000

Corporate sukuks 6.1.2 4,223,218 3,677,722
4,223,218 4,277,722

6.1.1 Government Securities

Percentage in relation
to
Sales / Carrying Market
Purchases As at Unrealised
As at July maturity value as at value as at Total
Maturity during the December appreciation/ Net assets
Name of the security Profit rate 1, 2019 during the December December market
date period 31, 2019 (diminution) of the
period 31, 2019 31, 2019 value of
Fund
investment
--------- Number of certificates --------- --------- (Rupees in '000) --------- -------- % --------

Pakistan Energy March 1, 6 months KIBOR 120,000 - 120,000 - - - - - -

Sukuk 2029 plus base rate of
0.8%

Total as at December 31, 2019 - - - - -

Total as at June 30, 2019 600,000 600,000 - 6.33 9.30

6.1.2 Corporate Sukuks

Percentage in relation to
Sales / Unrealised
* Carrying * Market Total
Purchases redemp- As at apprecia- Net Total issue
As at July value as at value as at market
Maturity during the tions December tion / assets (with face
Name of the security Profit rate 1, 2019 December December value of
date period during the 31, 2019 (diminu- of the value of
31, 2019 31, 2019 invest-
period tion) Fund invest-ment)
ment
----- (Number of certificates) ----- --------- (Rupees in '000) --------- ------------ % ------------

Arzoo Textile Mills Limited April 15, 6 months KIBOR 14,000 - - 14,000 - - - - 9.46 -
(note 6.1.2.1 & 6.1.2.2) * 2014 plus base rate of
2%

Eden Housing Limited (note September 6 months KIBOR 59,400 - - 59,400 - - - - 12.32 -
6.1.2.1 & 6.1.2.2) * 29, 2014 plus base rate of
2.5%

Security Leasing Corporation January Nil 3,081 - - 3,081 - - - - 6.67 -

Limited II (note 6.1.2.1 & 19, 2022
6.1.2.2) *

BANKS
Dubai Islamic Bank Pakistan July 14, 6 months KIBOR 513 - 15 498 507,315 498,498 (8,817) 2.33 12.45 6.93
Limited (AA-, VIS, non-traded) 2027 plus base rate of
(note 6.1.2.1) 0.5%

Percentage in relation to
Sales / Unrealised
* Carrying * Market Total
Purchases redemp- As at apprecia- Net Total issue
As at July value as at value as at market
Maturity during the tions December tion / assets (with face
Name of the security Profit rate 1, 2019 December December value of
date period during the 31, 2019 (diminu- of the value of
31, 2019 31, 2019 invest-
period tion) Fund invest-ment)
ment
BANKS
Dubai Islamic Bank Pakistan July 14, 6 months KIBOR 513 - 15 498 507,315 498,498 (8,817) 2.33 12.45 6.93
Limited (AA-, VIS, non-traded) 2027 plus base rate of
(note 6.1.2.1) 0.5%
4

Percentage in relation to
Sales / Unrealised
* Carrying * Market Total
Purchases redemp- As at apprecia- Net Total issue
As at July value as at value as at market
Maturity during the tions December tion / assets (with face
Name of the security Profit rate 1, 2019 December December value of
date period during the 31, 2019 (diminu- of the value of
31, 2019 31, 2019 invest-
period tion) Fund invest-ment)
ment

----- (Number of certificates) ----- --------- (Rupees in '000) --------- ------------ % ------------

Meezan Bank Limited Tier - II September 6 months KIBOR 368 - - 368 367,991 366,032 (1,959) 1.71 5.26 5.09
(AA, VIS, traded) (note 6.1.2.1) 22, 2026 plus base rate of
0.50%

FERTILIZER
Engro Fertilizer Limited (AA, July 9, 6 months KIBOR 14,875 - 14,875 - - - - - - -
PACRA, non-traded) (note 2019 plus base rate of
6.1.2.1) 1.75%

Fatima Fertilizer Company November 6 months KIBOR 29,833 - 5,967 23,866 120,258 120,272 14 0.56 2.84 1.67
Limited (AA-, PACRA, traded) 28, 2021 plus base rate of
(note 6.1.2.1) 1.10%

OIL & GAS MARKETING COMPANIES

Hascol Petroleum Limited January 3 months KIBOR 44,000 - 8,000 36,000 181,350 180,118 (1,232) 0.84 9.00 2.51
(BBB+, VIS, traded) (note 06, 2022 plus base rate of
6.1.2.1) 1.50%

POWER GENERATION & DISTRIBUTION

K-Electric Limited (sukuk 4) June 17, 3 months KIBOR 15,692 - 15,692 - - - - - - -
(AA+, VIS, traded) (note 2022 plus base rate of
6.1.2.1) 1.00%

K-Electric Limited (sukuk 5) December 3 months KIBOR - 80,000 - 80,000 400,000 400,000 - 1.87 1.60 5.56
(AA+, VIS, traded) (note 27, 2026 plus base rate of
6.1.2.1) 1.70%

Hub Power Company Limited November 3 months KIBOR 120,000 - 120,000 - - - - - - -

(A1+, PACRA) (note 6.1.2.1) 26, 2019 plus base rate of
1.00%

Hub Power Company Limited October 2, 3 months KIBOR 70,000 - 70,000 - - - - - - -

(A1+, PACRA) (note 6.1.2.1) 2019 plus base rate of
1.00%

Hub Power Company Limited August 22, 3 months KIBOR - 5,435 150 5,285 528,670 533,257 4,587 2.49 7.55 7.42
(AA+, PACRA) (note 6.1.2.1) 2023 plus base rate of
1.90%

Hub Power Company Limited May 21, 3 months KIBOR - 5,000 - 5,000 500,000 500,000 - 2.33 11.11 6.95
(AA+, PACRA) (note 6.1.2.1) 2020 plus base rate of
1.50%

Engro Powergen Thar (Private) August 2, 3 months KIBOR - 50,000 - 50,000 250,000 250,000 - 1.17 8.33 3.48
Limited (A, PACRA) (note 2024 plus base rate of
6.1.2.1) 1.10%

PHARMACEUTICALS
AGP Limited (A+, PACRA, non- June 9, 3 months KIBOR 1,712 - 285 1,427 142,650 143,720 1,070 0.67 11.65 2.00
traded) (note 6.1.2.1) 2022 plus base rate of
1.30%

CEMENT & CONSTRUCTION

Javedan Corporation Limited October 4, 6 months KIBOR 1,000 - - 1,000 99,535 97,894 (1,641) 0.46 3.34 1.36
(AA-, VIS non-traded) (note 2026 plus base rate of
6.1.2.1) 1.75%

Percentage in relation to
Sales / Unrealised
* Carrying * Market Total
Purchases redemp- As at apprecia- Net Total issue
As at July value as at value as at market
Maturity during the tions December tion / assets (with face
Name of the security Profit rate 1, 2019 December December value of
date period during the 31, 2019 (diminu- of the value of
31, 2019 31, 2019 invest-
period tion) Fund invest-ment)
ment
 CEMENT & CONSTRUCTION
Javedan Corporation Limited October 4, 6 months KIBOR 1,000 - - 1,000 99,535 97,894 (1,641) 0.46 3.34 1.36
(AA-, VIS non-traded) (note 2026 plus base rate of
6.1.2.1) 1.75%
5

Percentage in relation to
Sales / Unrealised
* Carrying * Market Total
Purchases redemp- As at apprecia- Net Total issue
As at July value as at value as at market
Maturity during the tions December tion / assets (with face
Name of the security Profit rate 1, 2019 December December value of
date period during the 31, 2019 (diminu- of the value of
31, 2019 31, 2019 invest-
period tion) Fund invest-ment)
ment

----- (Number of certificates) ----- --------- (Rupees in '000) --------- ------------ % ------------

STEEL & ALLIED PRODUCTS

Agha Steel Industries (A+, VIS) October 9, 3 months KIBOR 250 - - 250 250,000 250,000 - 1.17 5.00 3.48
(note 6.1.2.1) 2024 plus base rate of
0.80%

CHEMICALS
Engro Polymer and Chemicals July 11, 3 months KIBOR 3,000 - - 3,000 301,406 304,125 2,719 1.42 3.43 4.23
Limited (AA, PACRA) (note 2026 plus base rate of
6.1.2.1) 0.90%

TEXTILE COMPOSITE
Masood Textile Mills Limited December 3 months KIBOR - 150 - 150 150,000 150,000 - 0.70 6.00 2.09
(A, VIS) (note 6.1.2.1) 17, 2024 plus base rate of
2.00%

MISCELLANEOUS
International Brands Limited November 12 months 4,000 - - 4,000 335,266 337,833 2,567 1.58 14.13 4.70
(AA, VIS, non-traded) (note 15, 2021 KIBOR plus base
6.1.2.1) rate of 0.50%

Shakarganj Food Products July 10, 3 months KIBOR 100 - - 100 92,944 91,469 (1,475) 0.43 13.79 1.27
Limited (A, VIS) (note 6.1.2.1) 2024 plus base rate of
1.75%

Total as at December 31, 2019 4,227,385 4,223,218 (4,167)

Total as at June 30, 2019 3,696,593 3,677,722 (18,872)

* In case of debt securities against which provision has been made, these are carried at carrying value less provision.

6.1.2.1 The nominal value of these sukuk certificates is Rs 5,000 each except for the sukuk certificates of Dubai Islamic Bank
Pakistan Limited, Eden Housing Limited, International Brands Limited, Meezan Bank Limited, Shakarganj Food
Products Limited, AGP Limited, Javedan Corporation Limited, Agha Steel Industries Limited, Engro Polymer and
Chemicals Limited, Hub Power Company Limited and Masood Textile Mills Limited having nominal value of Rs
1,000,000, Rs 984.375, Rs 100,000, Rs 100,000, Rs. 1,000,000, Rs. 1,000,000, Rs. 100,000, Rs. 100,000, Rs.
1,000,000, Rs. 100,000, Rs. 100,000 and Rs. 1,000,000 respectively.

6.1.2.2 The Securities and Exchange Commission of Pakistan vide circular 7 of 2009 dated March 6, 2009 required all Asset
Management Companies to classify funds under their management on the basis of categorisation criteria laid down in
the circular. Al Meezan Investment Management Limited (the Management Company) classified Meezan Islamic
Income Fund (the Fund) as an 'Income Scheme' in accordance with the said circular. As at December 31, 2019, the
Fund is compliant with all the requirements of the said circular except for clause 9 (v) which requires the rating of any
security in the portfolio shall not be lower than the investment grade.

Following investments of the Funds are in sukuks which are below 'investment grade' securities:

Value of Value of
Provision Percentage Percentage
investment investment
Name of non-compliant held of net of total
Type of investments before after
investment (if any) assets assets
provision provision
----------------- (Rupees in '000) ----------------- ---------%--------

Arzoo Textile Mills Limited Non-traded sukuk certificates 70,000 70,000 - - -

Eden Housing Limited Non-traded sukuk certificates 58,472 58,472 - - -
Security Leasing Corporation Limited II Non-traded sukuk certificates 15,403 15,403 - - -

Total - December 31, 2019 143,875 143,875 - - -

Total - June 30, 2019 143,875 143,875 - - -

 Security Leasing Corporation Limited II Non-traded sukuk certificates 15,403 15,403 - - -

Total - December 31, 2019 143,875 143,875 - - -

Total - June 30, 2019 143,875 143,875 - - -

6

6.1.2.2.1 On May 6, 2011, Arzoo Textile Mills Limited and Eden Housing Limited sukuk certificates were classified as non-
performing by Mutual Funds Association of Pakistan (MUFAP). Therefore in accordance with the requirement of
SECP's Circular No.33 of 2012, the sukuk certificates have been classified as non-performing assets and no further
profit has been accrued thereafter. Further, in accordance with the said Circular, an amount of Rs. 70 million and Rs.
58.472 million respectively have also been held as provision against the outstanding principal as at December 31,
2019.

6.1.2.2.2 The agreement with Security Leasing Corporation Limited (SLCL) had been amended on February 19, 2012. In
accordance with the revised terms no mark-up is payable on the said sukuk as per the approval of contributories to the
sukuk certificate. The sukuk certificates have been classified as non-performing by MUFAP on April 3, 2012.
Therefore, in accordance with the requirement of circular no.33 of 2012, the sukuk certificates have been classified as
non-performing assets and no further profit has been accrued thereafter. Further, in accordance with the provisioning
policy of the Fund, an amount of Rs 15.403 million has also been held as provision against the outstanding principal as
at December 31, 2019.

6.1.2.3 Circular No. 33 of 2012 allows the asset manager to apply a mark up / mark down within available limit for valuation of
any specific debt security. Exercising the discretionary power, the above mentioned Sukuks of Javedan Corporation,
Hascol Petroleum Limited and Shakarganj Food Products Limited has been valued at a discretionary rate of 97.8944,
100.0655 and 96.2836 when the reported market rate on MUFAP valuation sheet as at December 31, 2019 was
95.2419, 100.7500 and 94.6096 respectively.

6.2 Certificates of Musharakah

Carrying Market Percentage in relation to

Placed Matured Unrealised
Name of the As at July value as at value as at Total market
Profit rate during the during the appreciation/ Net assets of
investee Maturity date 1, 2019 December December value of
period period (diminution) the Fund
company 31, 2019 31, 2019 investment
---- % ---- ---------------- (Rupees in '000) ---------------- ------- % -------

Orix Modaraba September 14, 2019 10.47-12.72 600,000 - 600,000 - - - - -

Orix Modaraba September 27, 2019 10.69-12.94 150,000 - 150,000 - - - - -
Orix Modaraba September 4, 2020 13.92 - 200,000 - 200,000 200,000 - 0.93 2.78
Orix Modaraba September 4, 2020 13.92 - 200,000 - 200,000 200,000 - 0.93 2.78
Orix Modaraba September 16, 2020 13.84 - 200,000 - 200,000 200,000 - 0.93 2.78

Total as at December 31, 2019 750,000 600,000 750,000 600,000 600,000 - 2.80 8.34

Total as at June 30, 2019 900,000 1,662,798 1,812,798 750,000 750,000 - 7.92 11.62

6.3 Commercial Papers

Percentage in relation to
Sales /
Carrying Market
As at Purchases redemptions / As at
value as at value as at Total market
Maturity July 1, during the maturity December Net assets of
Name of the security Profit rate December December value of
date 2019 period during the 31, 2019 the Fund
31, 2019 31, 2019 investment
period

------------ (Number of certificates) ------------ ------ (Rupees in '000) ------ -------- % --------

Hascol Petroleum Limited July 15, 6 months KIBOR plus 400 - 400 - - - - -
CP - 3 (note 6.3.1) 2019 base rate of 1.50%

K-Electric Limited CP-2 September 6 months KIBOR plus 1,001 - 1,001 - - - - -

(note 6.3.1) 2, 2019 base rate of 0.90%

TPL Corp Limited CP January 6 months KIBOR plus 50 - - 50 49,777 49,777 0.23 0.69
(note 6.5.1) 11, 2020 base rate of 2.75%

K-Electric Limited CP-A February 6 months KIBOR plus - 1,200 - 1,200 1,172,782 1,172,782 5.47 16.31
(note 6.3.1) 28, 2020 base rate of 1.30%

K-Electric Limited CP-3 March 19, 6 months KIBOR plus - 1,180 - 1,180 1,144,306 1,144,306 5.34 15.92
(note 6.3.1) 2020 base rate of 1.30%

Total as at December 31, 2019 2,366,865 2,366,865 11.04 32.92

Total as at June 30, 2019 1,426,497 1,426,497 15.06 22.10

6.3.1 The nominal value of these commercial papers is Rs 1,000,000 each.

 7

7. PAYABLE TO CENTRAL DEPORSITORY COMPANY OF PAKISTAN LIMITED - TRUSTEE

The Trustee is entitled to a monthly remuneration for services rendered to the Fund under the provisions of the trust
deed. Effective from July 1, 2019, the trustee has revised its tariff as under:

Previous Tariff Revised Tariff

Net Assets (Rs.) Fee (Flat Rate)
- up to Rs. 1 billion Rs 0.6 million or 0.17% per annum of net assets
0.075% p.a. of
- Rs 1 billion to Rs. 10 billion Rs 1.7 million plus 0.085% p.a. of net assets exceeding Rs 1 billion
Net Assets
- over Rs. 10 billion Rs 5.1 million plus 0.07% p.a. of net assets exceeding Rs 5 billion

Accordingly, the Fund has charged Trustee Fee at the rate 0.075% per annum during the current period.

8. PAYABLE TO THE SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN (SECP)

In accordance with the NBFC Regulations, a Collective Investment Scheme (CIS) is required to pay annual fee to the
Securities and Exchange Commission of Pakistan (SECP).

Effective from July 1, 2019, the SECP vide SRO No. 685(I)/2019 dated June 28, 2019, revised the rate of annual fee
to 0.02% of net assets, applicable on all categories of CISs. Previously, the rate of annual fee applicable to income
fund was 0.075%. Accordingly, the Fund has charged SECP Fee at the rate of 0.02% of net assets during the current
period.

December 31, June 30,

2019 2019
(Unaudited) (Audited)
9. ACCRUED EXPENSES AND OTHER LIABILITIES Note (Rupees in '000)

Provision for Sindh Workers' Welfare Fund (SWWF) 9.1 58,934 38,755
Withholding tax payable - 37,969
Provision for Federal Excise Duty and related Sindh Sales Tax
on management fee 9.2 50,417 50,417
Provision for Federal Excise Duty and related Sindh Sales Tax
on sales load 9.2 2,642 2,642
Capital gain tax payable 5,677 11,065
Auditors' remuneration payable 337 430
Printing expenses payable 566 566
Brokerage payable 132 159
Zakat payable 38 187
Shariah advisor fee payable 663 529
Other payable 76 -
119,482 142,719

9.1 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, is 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 has 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, the MUFAP had 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 (i.e. starting from May 21, 2015).

Had the provision for SWWF not been recorded in the condensed interim financial statements of the Fund for the
period from May 21, 2015 to December 31, 2019, the net asset value of the Fund as at December 31, 2019 would
have been higher by Re. 0.15 per unit (June 30, 2019: Re 0.21 per unit).
 8

9.2 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 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.

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 December 31, 2019 amounting to Rs 53.059 million (June 30, 2019: 53.059
million) is being retained in these condensed interim 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
December 31, 2019 would have been higher by Re 0.14 ( June 30, 2019: Re 0.29 ) per unit.

10. CONTINGENCIES AND COMMITMENTS

There were no contingencies and commitments outstanding as at December 31, 2019 and June 30, 2019.

11. TRANSACTIONS WITH CONNECTED PERSONS / RELATED PARTIES

Connected persons include Al Meezan Investment Management Limited being the Management Company, the Central
Depository Company of Pakistan Limited being the Trustee, Meezan Bank Limited being the holding company of the
Management Company, Directors and Executives of the Management Company, other the Funds under the common
management of 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 unitholders holding 10 percent or more of the Fund's net assets.

Transactions with connected persons are in the normal course of business, at contracted rates and terms determined
in accordance with market rates.

Remuneration payable to the Management Company and the Trustee is determined in accordance with the provision
of the NBFC Rules, the NBFC Regulations and the Trust Deed respectively.

Details of transactions with connected persons and balances with them are as follows:

December 31, June 30,

2019 2019
(Unaudited) (Audited)
(Rupees in '000)
Al Meezan Investment Management Limited - the Management Company
Remuneration payable 15,824 6,904
Sindh Sales Tax payable on remuneration of the Management Company 2,057 898
Sales load payable 2,115 523
Sindh Sales Tax on sales load 275 68
Allocated expenses payable 2,683 872
Selling and marketing expense payable 19,028 10,591
Certificate charges payable 1 1
Investment of nil (June 30, 2019: 1,287,879 units) - 66,244

Meezan Bank Limited

Balances with bank 34,805 44,405
Sales load payable 628 353
Sindh Sales Tax on sales load 82 46
Profit receivable on saving account 1 466
Profit receivable on sukuk certificates 17,931 13,925
Investment of 368 sukuk certificates (June 30, 2019: 368 sukuk certificates) 366,032 367,991
 9

December 31, June 30,

2019 2019
(Unaudited) (Audited)
(Rupees in '000)
Central Depository Company of Pakistan Limited - the Trustee
Trustee fee payable 1,335 742
Sindh Sales Tax on Trustee Fee payable 174 96
Security deposit 100 100

Meezan Financial Planning Fund of Funds

- Aggressive Allocation Plan
Investment of 1,246,081 units (June 30, 2019: 882,014 units) 67,979 45,368

Meezan Financial Planning Fund of Funds

- Moderate Allocation Plan
Investment of 1,230,135 units (June 30, 2019: 981,323 units) 67,109 50,476

Meezan Financial Planning Fund of Funds

- Conservative Allocation Plan
Investment of 2,179,472 units (June 30, 2019: 1,598,392 units) 118,899 82,216

Meezan Strategic Allocation Fund - MSAP - I

Investments of nil units (June 30, 2019: 4,983,963 units) - 256,359

Meezan Strategic Allocation Fund - MSAP - II

Investments of nil units (June 30, 2019: 3,408,091 units) - 175,301

Meezan Strategic Allocation Fund - MSAP - III

Investments of nil units (June 30, 2019: 4,056,911 units) - 208,674

Meezan Strategic Allocation Fund - MSAP - IV

Investments of nil units (June 30, 2019: 4,583,447 units) - 235,757

Meezan Strategic Allocation Fund - MSAP - V

Investments of nil units (June 30, 2019: 4,583,447 units) - 40,484

Directors and Executives of the Management Company

Investments of 7,669,904 units (June 30, 2019: 288,053 units) 418,424 14,816

Six months period ended

December 31,
2019 2018
(Unaudited)
(Rupees in '000)
Al Meezan Investment Management Limited - the Management Company
Remuneration for the period 74,733 40,284
Sindh Sales Tax on remuneration of the Management Company 9,715 5,237
Allocated expenses 12,269 5,152
Selling and marketing expense 33,565 -
Units issued: 61,626 units (December 31, 2018: 7,639,986 units) 3,224 397,114
Units redeemed: 1,349,505 units (December 31, 2018: 20,175,380 units) 69,559 1,049,100
Cash dividend paid - 17,356
Refund of capital - 23,214

Meezan Bank Limited

Profit on saving account 6,070 1,094
Profit on sukuk certificate 25,061 14,242

Central Depository Company of Pakistan Limited - the Trustee

Remuneration for the period 6,293 4,413
Sindh Sales Tax on trustee fee 818 574
CDS Charges 91 17
 10

Six months period ended

December 31,
2019 2018
(Unaudited)
(Rupees in '000)
Meezan Financial Planning Fund of Funds
- Aggressive Allocation Plan
Units issued: 901,952 units (December 31, 2018: 102,478 units) 46,964 5,299
Units redeemed: 537,885 units (December 31, 2018: 216,559 units) 28,644 11,393
Cash dividend paid - 2,325
Refund of capital - 224

Meezan Financial Planning Fund of Funds

- Moderate Allocation Plan
Units issued: 738,691 units (December 31, 2018: 61,736 units) 38,414 3,172
Units redeemed: 489,879 units (December 31, 2018: 387,350 units) 25,657 20,164
Cash dividend paid - 2,809
Refund of capital - 363

Meezan Financial Planning Fund of Funds

- Conservative Allocation Plan
Units issued: 1,387,613 units (December 31, 2018: 246,147 units) 72,159 12,785
Units redeemed: 806,533 units (December 31, 2018: 549,956 units) 42,643 28,723
Cash dividend paid - 3,989
Refund of capital - 358

Meezan Financial Planning Fund of Funds - MAAP - I

Units issued: 3,782,012 units (December 31, 2018: 730,485 units) 194,649 37,613
Units redeemed: 3,782,012 units (December 31, 2018: 581,864 units) 197,912 30,750
Cash dividend paid - 4,610
Refund of capital - 3,003

Meezan Financial Planning Fund of Funds - MAAP - IV

Units issued: nil (December 31, 2018: 63,875 units) - 3,280
Units redeemed: nil (December 31, 2018: 1,558,092 units) - 80,267
Cash dividend paid - 1,736
Refund of capital - 1,544

Meezan Strategic Allocation Fund - MSAP - I

Units issued: 1,653,461 units (December 31, 2018: 1,495,164 units) 85,606 76,984
Units redeemed: 6,637,424 units (December 31, 2018: 1,396,349 units) 346,444 73,910
Cash dividend paid - 9,138
Refund of capital - 7,846

Meezan Strategic Allocation Fund - MSAP - II

Units issued: 1,128,244 units (December 31, 2018: 1,107,934 units) 58,413 57,052
Units redeemed: 4,536,335 units (December 31, 2018: 415,558 units) 236,405 22,000
Cash dividend paid - 5,875
Refund of capital - 4,177

Meezan Strategic Allocation Fund - MSAP - III

Units issued: 1,361,671 units (December 31, 2018: 1,213,228 units) 70,498 62,481
Units redeemed: 5,418,582 (December 31, 2018: nil) 282,706 -
Cash dividend paid - 4,540
Refund of capital - 3,941

Meezan Strategic Allocation Fund - MSAP - IV

Units issued: 1,536,740 units (December 31, 2018: 1,166,844 units) 79,563 60,088
Units redeemed: 6,120,187 (December 31, 2018: nil) 319,197 -
Cash dividend paid - 5,519
Refund of capital - 4,569
 11

Six months period ended

December 31,
2019 2018
(Unaudited)
(Rupees in '000)
Meezan Strategic Allocation Fund - MSAP - V
Units issued: 272,284 units (December 31, 2018: 384,345 units) 14,090 19,798
Units redeemed: 1,059,349 (December 31, 2018: nil) 55,177 -
Cash dividend paid - 363
Refund of capital - 435

Al Meezan Investment Management Limited - Employees' Gratuity Fund

Units issued: nil (December 31, 2018: 9,077 units) - 466
Cash dividend paid - 2
Refund of capital - 465

Directors and Executives of the Management Company

Units issued: 16,466,545 units (December 31, 2018: 939,642 units) 858,835 49,199
Units redeemed: 9,084,659 units (December 31, 2018: 636,405 units) 475,104 33,297
Cash dividend paid - 167
Refund of capital - 476

12. ALLOCATED EXPENSES

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).

Until June 19, 2019 there was a maximum cap of 0.1% of the average annual net assets of the scheme or actual
whichever is less, for allocation of such expense to the Fund. However, the SECP vide its SRO 639 dated June 20,
2019 removed the maximum cap of 0.1%.

The management company based on its own discretion has currently fixed a maximum capping of 0.1% of the average
annual net assets of the scheme for allocation of such expenses to the Fund for the period from July 1, 2019 to July
21, 2019 and 0.15% for the period from July 22, 2019 to December 31, 2019.

13. SELLING AND MARKETING EXPENSES

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) initially for a period of three years (i.e from January 1, 2017 till
December 31, 2019). The maximum cap of selling and marketing expense was 0.4% per annum of the net assets of
the Fund or actual expenses whichever is lower.

During the current period, the SECP through its circular 11 dated July 5, 2019 has revised the conditions for charging
of selling and marketing expenses to a Fund. As per the revised guidelines, the maximum cap of 0.4% per annum has
been lifted and now the asset management company is required to set a maximum limit for charging of such expense
to the Fund and the same should be approved by the Board as part of annual plan. Furthermore, the time limit of three
years has also been removed in the revised conditions.

Accordingly, the management company based on its own discretion has currently determined a capping of 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.

14. TOTAL EXPENSE RATIO

The Total Expense Ratio (TER) of the Fund for the period ended December 31, 2019 is 1.92% which include 0.39%
representing government levy, Sindh Workers' Welfare Fund and SECP fee.

15. TAXATION

The Fund's income is exempt from income tax as per clause (99) of part I of the Second Schedule to the Income Tax
Ordinance, 2001 subject to the condition that not less than 90 percent of the accounting income for the year as
reduced by capital gains, whether realised or unrealised, is distributed amongst the unitholders. Furthermore, as per
regulation 63 of the NBFC Regulations, the Fund is required to distribute 90 percent of the net accounting income
other than capital gains to the unitholders. The Fund has not recorded any tax liability in respect of income relating to
the current period as the Management Company intends to distribute at least 90 percent of the Fund's accounting
income for the year ending June 30, 2020 as reduced by capital gains (whether realised or unrealised) to its
unitholders.
 12

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.

16. FAIR VALUES OF FINANCIAL INSTRUMENTS

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.

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: Fair value measurements using quoted price (unadjusted) in an active market for identical assets or
liabilities.

- Level 2: Fair value measurements using inputs other than quoted prices included within level 1 that are
observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

- Level 3: Fair value measurement using inputs for the asset or liability that are not based on observable market
data (i.e. unobservable inputs).

As at December 31, 2019 and June 30, 2019, the Fund held the following financial instruments measured at fair value:

As at December 31, 2019

ASSETS Level 1 Level 2 Level 3 Total
--------------------------------------- (Rupees in '000) ---------------------------------------
Financial assets 'at fair value through profit or loss'
Sukuk Certificates - 4,223,218 - 4,223,218
Certificates of Musharakah* - 600,000 - 600,000
Commercial Papers** - 2,366,865 - 2,366,865
- 7,190,083 - 7,190,083

As at June 30, 2019

ASSETS Level 1 Level 2 Level 3 Total
--------------------------------------- (Rupees in '000) ---------------------------------------
Financial assets 'at fair value through profit or loss'
Sukuk Certificates - 4,277,722 - 4,277,722
Certificates of Musharakah* - 750,000 - 750,000
Commercial Papers** - 1,426,497 - 1,426,497
- 6,454,219 - 6,454,219
* The carrying value of these securities approximate their fair value since these are short term in nature and are placed with counter
parties which have high credit ratings.

** The valuation of commercial papers has been done based on amortisation of commercial paper to its face value as per the
guidelines given in Circular 33 of 2012 since the residual maturity of this investment is less than six months and they are placed with
counterparties which have high credit rating.

17. GENERAL

17.1 Figures have been rounded off to the nearest thousand rupees.
 13

17.2 Corresponding figures have been rearranged and reclassified, wherever necessary, for the purpose of better
presentation. No significant rearrangements or reclassifications were made in these condensed interim financial
statements during the period.

18. DATE OF AUTHORISATION

February 10, 2020
These condensed interim financial statements were authorised for issue on _______________ by the Board of
Directors of the Management Company.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
 REDEFINING INVESTMENT IN
Meezan THE FRUIT HUB OF PAKISTAN
Sovereign Fund

MEEZAN SOVEREIGN FUND Quetta Branch

(MSF)
Meezan Sovereign Fund is Pakistan’s first Shariah compliant
Government Securities Fund. The purpose of the fund is to
provide maximum possible preservation of capital and a
reasonable rate of return by investing primarily in Shariah
compliant Government Securities.

QUETTA RAILWAY STATION

(QUETTA)
 REDEFINING INVESTMENT IN
Meezan THE FRUIT HUB OF PAKISTAN
Sovereign Fund

MEEZAN SOVEREIGN FUND Quetta Branch

(MSF)
Meezan Sovereign Fund is Pakistan’s first Shariah compliant
Government Securities Fund. The purpose of the fund is to
provide maximum possible preservation of capital and a
reasonable rate of return by investing primarily in Shariah
compliant Government Securities.

QUETTA RAILWAY STATION

(QUETTA)
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. Mohammad Shoaib, CFA Chief Executive Officer
Mr. Muhammad Abdullah Ahmed Nominee Director - MBL
Mr. Mohammad Furquan R Kidwai Independent Director
Mr. ljaz Farooq Nominee Director - MBL
Mr. Moin M. Fudda Independent Director
Ms. Saima Kamila Khan Independent Director
Mr. Arshad Majeed Nominee Director - MBL
Mr. Naeem Abdul Sattar Nominee Director - PKIC
Syed Amir Ali Zaidi Nominee Director – PKIC

CFO & COMPANY SECRETARY OF THE MANAGEMENT COMPANY

Syed Owais Wasti

AUDIT COMMITTEE
Mr. Moin M. Fudda Chairman
Mr. Arshad Majeed Member
Mr. Naeem Abdul Sattar Member

RISK MANAGEMENT COMMITTEE

Mr. Muhammad Abdullah Ahmed Chairman
Syed Amir Ali Zaidi Member
Mr. Naeem Abdul Sattar Member

HUMAN RESOURSE & REMUNERATION COMMITTEE

Mr. Moin M. Fudda Chairman
Mr. Ariful Islam Member
Mr. Naeem Abdul Sattar 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 Islamic Bank Limited
Askari Bank Limited - Islamic Banking Meezan Bank Limited
Bank Al Habib Limited - Islamic Banking National Bank of Pakistan - Islamic Banking
Bank Alfalah Limited Sindh Bank Limited
Bank Islami Pakistan Limited UBL Ameen - Islamic Banking
Dubai Islamic Bank Pakistan Limited
Faysal Bank Limited - 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:

TRANSFER AGENT
Meezan Bank Limited
Meezan House
C-25, Estate Avenue, SITE, Karachi.
Phone: 38103538 Fax: 36406017
Website: www.meezanbank.com

DISTRIBUTORS
Al Meezan Investment Management Limited
Meezan Bank Limited
Standard Chartered Bank (Pakistan) Limited
MEEZAN SOVEREIGN FUND
CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
AS AT DECEMBER 31, 2019

December 31, June 30,

2019 2019
(Unaudited) (Audited)
Note (Rupees in '000)
Assets
Balances with banks 5 2,956,800 5,132,514
Investments 6 1,112,236 1,124,715
Receivable against conversion of units 70,060 59,236
Deposits, prepayments and other receivable 90,329 70,900
Total assets 4,229,425 6,387,365

Liabilities
Payable to Al Meezan Investment Management Limited - the Management Company 7,041 4,228
Payable to Central Depository Company of Pakistan Limited - the Trustee 7 482 538
Payable to Meezan Bank Limited 35 68
Payable to the Securities and Exchange Commission of Pakistan 8 405 1,400
Payable against redemption and conversion of units 204,472 562,316
Accrued expenses and other liabilities 10 107,159 113,666
Total liabilities 319,594 682,216

Net assets 3,909,831 5,705,149

Contingencies and commitments 9

Unit holders’ fund (as per statement attached) 3,909,831 5,705,149

(Number of units)

Number of units in issue 71,614,897 110,716,688

(Rupees)

Net asset value per unit 54.5952 51.5293

The annexed notes 1 to 18 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN SOVEREIGN FUND
CONDENSED INTERIM INCOME STATEMENT (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

Six months period ended Quarter ended

December 31, December 31,
Note 2019 2018 2019 2018
(Rupees in '000) (Rupees in '000)
Income
Profit on sukuk certificates 78,187 40,407 41,745 18,920
Net realised loss on sale of sukuk certificates (197) (12,004) (292) (194)
Profit on saving accounts with banks 184,051 21,617 103,916 11,166
262,041 50,020 145,369 29,892
Net unrealised appreciation on
re-measurement of investments classified as
'financial assets at fair value through profit or loss' 6.1.1 - 7,508 - 10,580

Total income 262,041 57,528 145,369 40,472

Expenses
Remuneration of Al Meezan Investment Management Limited
- the Management Company 12,710 8,785 6,422 4,000
Sindh Sales Tax on remuneration of the Management Company 1,652 1,142 835 520
Remuneration of Central Depository Company of Pakistan -
Limited - the Trustee 7 1,293 1,037 696 489
Sindh Sales Tax on remuneration of the Trustee 168 134 90 63
Annual fee to Securities and Exchange Commission of Pakistan 8 405 659 214 300
Auditors' remuneration 340 360 216 181
Fees and subscription 415 334 140 174
Brokerage - 209 - 2
Bank and settlement charges 272 91 81 38
Allocated expenses 12 2,874 878 1,605 400
Selling and marketing expense 13 7,125 - 4,282 -
Provision for Sindh Workers' Welfare Fund (SWWF) 10.1 4,696 878 2,616 686
Total expenses 31,950 14,507 17,197 6,853

Net income for the period before taxation 230,091 43,021 128,172 33,619

Taxation 15 - - - -

Net income for the period after taxation 230,091 43,021 128,172 33,619

Allocation of net income for the period

Net income for the period after taxation 230,091 43,021
Income already paid on units redeemed (62,378) 6,590
167,713 36,431

Accounting income available for distribution

- Relating to capital gains - -
- Excluding capital gains 167,713 36,431
167,713 36,431

The annexed notes 1 to 18 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN SOVEREIGN FUND
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

Six months period Quarter ended,

December 31, December 31,
2019 2018 2019 2018
(Rupees in '000) (Rupees in '000)

Net income for the period after taxation 230,091 43,021 128,172 33,619

Other comprehensive income - - - -

Total comprehensive income for the period 230,091 43,021 128,172 33,619

The annexed notes 1 to 18 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN SOVEREIGN FUND
CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS’ FUND (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

Six months period ended December 31, Six months period ended December 31,
2019 2018

Undistri- Undistri-
Capital Capital
buted Total buted Total
Value Value
income income
-------------------------------------------------(Rupees-------------------------------------------------(Rupees
in '000)-------------------------------------------------in '000)-------------------------------------------------

Net assets at the beginning of the period 5,409,260 295,889 5,705,149 1,792,404 328,112 2,120,516

Issue of 109,502,081 units (2018: 28,988,772 units)

- Capital value (at net asset value per unit at
the beginning of the period) 5,642,566 - 5,642,566 1,492,505 - 1,492,505
- Element of income 141,014 - 141,014 13,666 - 13,666
Total proceeds on issuance of units 5,783,580 - 5,783,580 1,506,171 - 1,506,171

Redemption of 148,603,872 units (2018: 40,844,893 units)

- Capital value (at net asset value per unit at the
beginning of the period) 7,657,454 - 7,657,454 2,102,924 - 2,102,924
- Element of loss 89,157 62,378 151,535 9,895 6,590 16,485
Total payments on redemption of units 7,746,611 62,378 7,808,989 2,112,819 6,590 2,119,409

Total comprehensive income for the period - 230,091 230,091 - 43,021 43,021
Distribution during the period - - - - (37,026) (37,026)
Refund of capital - - - (12,782) - (12,782)
Net income for the period less distribution - 230,091 230,091 (12,782) 5,995 (6,787)

Net assets at the end of the period 3,446,229 463,602 3,909,831 1,172,974 327,517 1,500,491

Undistributed income brought forward

- Realised income 297,344 360,148
- Unrealised (loss) (1,455) (32,036)
295,889 328,112
Accounting income available for distribution
- Relating to capital gains - -
- Excluding capital gains 167,713 36,431
167,713 36,431
Distribution during the period at Rs Nil [2018: Rs. 1.2384 per unit i.e. 2.48% - (37,026)
of the par value of Rs. 50/- each (July 6, 2018)]
Undistributed income carried forward 463,602 327,517

Undistributed income carried forward

- Realised income 463,602 320,009
- Unrealised income - 7,508
463,602 327,517

(Rupees) (Rupees)

Net assets value per unit at beginning of the period 51.5293 52.7240

Net assets value per unit at end of the period 54.5952 52.9030

The annexed notes 1 to 18 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN SOVEREIGN FUND
CONDENSED INTERIM CASH FLOW STATEMENT (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

Six months period ended

December 31,
2019 2018
(Rupees in '000)
CASH FLOWS FROM OPERATING ACTIVITIES

Net income for the period before taxation 230,091 43,021

Adjustments for
Net unrealised (appreciation) on re-measurement of investments
classified as 'financial assets at fair value through profit or loss' - (7,508)
230,091 35,513
(Increase) / decrease in assets
Investments - net 12,479 1,192,885
Deposits, prepayments and other receivable (19,429) 22,061
(6,950) 1,214,946
Decrease in liabilities
Payable to Al Meezan Investment Management Limited - Management Company 2,813 (554)
Payable to Central Depository Company of Pakistan Limited - Trustee (56) 138
Payable to Securities and Exchange Commission of Pakistan (995) (1,458)
Payable to Meezan Bank Limited (33) (299)
Accrued expenses and other liabilities (6,507) 1,338
(4,778) (835)

Net cash generated from operating activities 218,363 1,249,624

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts against issuance and conversion of units 5,772,756 1,515,440

Payments against redemption and conversion of units (8,166,833) (2,084,801)
Dividend paid - (37,026)
Net cash generated from / (used in) financing activities (2,394,077) (606,387)

Net (decrease) / increase in cash and cash equivalents during the period (2,175,714) 643,237
Cash and cash equivalents at the beginning of the period 5,132,514 673,082

Cash and cash equivalents at the end of the period 2,956,800 1,316,319

The annexed notes 1 to 18 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN SOVEREIGN FUND
NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

1. LEGAL STATUS AND NATURE OF BUSINESS

1.1 Meezan Sovereign Fund (the Fund) was established 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 May 14, 2009 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 licensed by the 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, Shahrah-e-
Faisal, Karachi, 74400, Pakistan.

1.2 The Fund has been formed to provide the unit holders maximum possible preservation of capital along with reasonable
Halal returns by investing primarily in a portfolio of Shariah compliant government securities, thus minimising the credit
risk of investments. The Fund also keeps an exposure in short-term near cash instruments for the purpose of
maintaining liquidity and to capitalise on exceptional returns if available at any given point of time. Under the Trust
Deed, all conducts and acts of the Fund are based on Shariah principles. Meezan Bank Limited acts 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 Shariah Compliant (Islamic) Income Scheme, 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.

1.4 The Management Company has been assigned a quality rating of AM1 by VIS Credit Rating Company Limited dated
December 31, 2019 (2018: AM1 dated December 28, 2018) and by PACRA dated December 28, 2019. The rating
reflects the Company’s experienced management team, structured investment process and sound quality of systems
and processes. The Fund has been given a stability rating of AA-(f) by VIS Credit Rating Company Limited.

1.5 Title to the assets of the Fund are held in the name of CDC as the Trustee of the Fund.

2. BASIS OF PRESENTATION

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.

3. BASIS OF PREPARATION

3.1 Statement of compliance

These condensed interim 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 Accounting Standard (IAS) 34, Interim Financial Reporting, 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.

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 with the
requirements of IAS 34, 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.

The disclosures made in these condensed interim financial statements have, however, been limited based on the
requirements of the International Accounting Standard 34: 'Interim Financial Reporting'. These condensed interim
financial statements do not include all the information and disclosures required in a full set of financial statements and
should be read in conjunction with the published audited annual financial statements of the Fund for the year ended
June 30, 2019.
 2

These condensed interim financial statements are unaudited. However, a limited scope review has been performed
by the statutory auditors. In compliance with Schedule V of the NBFC Regulations, the directors of the Management
Company declare that these condensed interim financial statements give a true and fair view of the state of affairs of
the Fund as at December 31, 2019.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES / ACCOUNTING ESTIMATES, JUDGEMENTS AND RISK

MANAGEMENT

4.1 The accounting policies adopted and the methods of computation of balances used in the preparation of this
condensed interim financial statements are the same as those applied in the preparation of the annual financial
statements of the Fund for the year ended June 30, 2019.

4.2 The preparation of the condensed interim financial statements in conformity with accounting and reporting standards
as applicable in Pakistan requires management to make estimates, assumptions and use judgments that affect the
application of policies and reported amounts of assets, liabilities, income and expenses. Estimates, assumptions and
judgments are continually evaluated and are based on historical experience and other factors, including reasonable
expectations of future events. Revisions to accounting estimates are recognised prospectively commencing from the
period of revision. In preparing the condensed interim financial statements, the significant judgments made by
management in applying the Fund’s accounting policies and the key sources of estimation and uncertainty were the
same as those applied to the financial statements as at and for the year ended June 30, 2019. The Fund’s financial
risk management objectives and policies are consistent with those disclosed in the annual financial statements of the
Funds for the year ended June 30, 2019.

4.3 Standards and amendments to published accounting and reporting standards that are effective in the current
period

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, 2019. However, these do not have any significant impact on the Fund's
operations and, therefore, have not been detailed in these condensed interim financial statements.

4.4 Standards, interpretations and amendments to published accounting and reporting standards that are not
yet 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, 2020
- IAS 8 - 'Accounting policies, change in accounting
estimates and errors' (amendment) January 1, 2020

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 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, 2020. However, these do not have any significant
impact on the Fund's operations and, therefore, have not been detailed in these condensed interim financial
statements.

December 31, June 30,

2019 2019
(Unaudited) (Audited)
Note (Rupees in '000)
5. BALANCES WITH BANKS

In saving accounts 5.1 2,953,956 5,129,670

In current accounts 2,844 2,844
2,956,800 5,132,514

5.1 The balance in saving accounts have an expected profit ranging from 3.00% to 13.50% per annum (June 30, 2019:
3.32% to 12.50% per annum).
 3

December 31, June 30,

2019 2019
(Unaudited) (Audited)
6. INVESTMENTS Note (Rupees in '000)

Investments - 'at fair value through profit or loss'

Sukuk CertifIcates 6.1 1,112,236 1,124,715
1,112,236 1,124,715

6.1 Sukuk Certificates

Government securities 6.1.1 950,000 950,000

Corporate sukuks 6.1.2 162,236 174,715
1,112,236 1,124,715

6.1.1 Government Securities

Percentage in
Sales / Carrying Market Unrealised
relation to
Purchased matured As at value as value as (loss) /
As at July Total
Maturity Profit during the during December at at gain as at Net assets
Name of the Security 1, 2019 market
date rate period the 31, 2019 December December December of the
value of
period 31, 2019 31, 2019 31, 2019 fund
investments
------------------------ Number of certificates ------------------------
------------------- (Rs in '000) -------------------
--------------- ( % ) ---------------

Pakistan Energy Sukuk (note 6.1.1.1) March 1, 6 months KIBOR 190,000 - - 190,000 950,000 950,000 - 24.30% 85.41%
2029 plus base rate of
0.8%
Total 950,000 950,000 -

6.1.1.1 Pakistan Energy Sukuk Certificates have a nominal value of Rs. 5,000 each. These have been carried at cost as
market value was not determined by Mutual Funds Associaton of Pakistan as at December 31, 2019.

6.1.2 Corporate sukuks

Sales / Percentage in
Carrying Market Unrealised
redempti relation to
Purchased As at value as value as (loss) /
As at July on Total
Maturity Profit during the December at at gain as at Net assets
Name of the Security 1, 2019 during market
date rate period 31, 2019 December December December of the
the value of
31, 2019 31, 2019 31, 2019 fund
period investments
------------------------ Number of certificates ------------------------
------------------- (Rs in '000) -------------------
--------------- ( % ) ---------------

Pow er generation & distribution

Neelum Jhelum Hydropow er Company June 29, 6 months KIBOR 1,706 - 122 1,584 162,236 162,236 - 4.15% 14.59%
(Private) Limited (AAA, VIS, non- 2026 plus base rate of
traded) (note 6.1.2.1) 1.13%
Total 162,236 162,236 -

6.1.2.1 The nominal value of the sukuk certificates is Rs 100,000 each.

7. PAYABLE TO CENTRAL DEPORSITORY COMPANY OF PAKISTAN LIMITED - TRUSTEE

The Trustee is entitled to a monthly remuneration for services rendered to the Fund under the provisions of the trust
deed. Effective from July 1, 2019, the trustee has revised its tariff as under:

Previous Tariff Revised Tariff

Net Assets (Rs.) Fee (Flat Rate)
- up to Rs. 1 billion 0.17% per annum of net assets
0.075% p.a. of
- Rs 1 billion to Rs. 10 billion Rs 1.7 million plus 0.085% p.a. of net assets exceeding Rs 1 billion
Net Assets
- over Rs. 10 billion Rs 5.1 million plus 0.07% p.a. of net assets exceeding Rs 5 billion

Accordingly, the Fund has charged Trustee Fee at the rate 0.075% per annum during the current period.
 4

8. PAYABLE TO THE SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN (SECP)

In accordance with the NBFC Regulations, a Collective Investment Scheme (CIS) is required to pay annual fee to the
Securities and Exchange Commission of Pakistan (SECP).

Effective from July 1, 2019, the SECP vide SRO No. 685(I)/2019 dated June 28, 2019, revised the rate of annual fee
to 0.02% of net assets, applicable on all categories of CISs. Previously, the rate of annual fee applicable to income
fund was 0.075%. Accordingly, the Fund has charged SECP Fee at the rate of 0.02% of net assets during the current
period.

9. CONTINGENCIES AND COMMITMENTS

There were no contingencies and commitments outstanding as at December 31, 2019 and June 30, 2019.

Note December 31, June 30,

2019 2019
(Unaudited) (Audited)
10. ACCRUED EXPENSES AND OTHER LIABILITIES (Rupees in '000)

Provision for Sindh Workers' Welfare Fund (SWWF) 10.1 21,227 16,531
Withholding tax payable 480 12,021
Capital gain tax payable 1,446 968
Provision for Federal Excise Duty and related Sindh
Sales Tax on management fee 10.2 80,077 80,077
Provision for Federal Excise Duty and related Sindh
Sales Tax on sales load 10.2 2,562 2,562
Printing expenses payable 156 156
Zakat payable 147 142
Auditors' remuneration payable 287 348
Brokerage payable 478 501
Shariah advisor fee payable 269 360
Other Payable 30 -
107,159 113,666

10.1 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 on a prudent basis 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 condensed interim financial statements of the Fund for the
period from May 21, 2015 to December 31, 2019, the net asset value of the Fund as at December 31, 2019 would
have been higher by Re 0.30 (June 30, 2019: Re 0.15 ).

10.2 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 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.

During the year ended 30 June 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.
 5

With effect from 01 July 2016, FED on services provided or rendered by non-banking financial institutions dealing in
services which are subject to provincial sales tax has been withdrawn by the Finance Act, 2016.

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 82.639 million ( June 30, 2019 : Rs
82.639 million) is being retained in the condensed interim 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 December 31, 2019 would have been higher by Re 1.15 ( June 30, 2019 : Rs. 0.75) per unit.

11. TRANSACTIONS WITH CONNECTED PERSONS / RELATED PARTIES

Connected persons include Al Meezan Investment Management Limited being the Management Company, Central
Depository Company of Pakistan Limited being the Trustee, Meezan Bank Limited being the holding company of the
Management Company, Directors and executives of the Management Company, other Funds under the common
management of 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 unitholders holding 10 percent or more of the Fund's net assets.

Transactions with connected persons are in the normal course of business, at contracted rates and terms determined
in accordance with market rates.

Remuneration payable to the management company and the trustee is determined in accordance with the provisions
of the NBFC Rules, the NBFC Regulations and the Trust Deed respectively.

Details of transactions with connected persons and balances with them are as follows:

December 31, June 30,

2019 2019
(Unaudited) (Audited)
(Rupees in '000)
Al Meezan Investment Management Limited - the Management Company
Remuneration payable 1,937 2,859
Sindh Sales Tax payable on remuneration of the Management Company 253 372
Sales load payable 78 629
Sindh Sales Tax payable on sales load 10 82
Allocated expense payable 482 286
Selling and marketing expense payable 4,281 -

Meezan Bank Limited

Balances with bank 38,802 485,689
Profit receivable on saving accounts 540 1,117
Sales load payable 31 60
Sindh Sales Tax on sales load payable 4 8

Central Depository Company of Pakistan Limited - the Trustee

Trustee fee payable 427 476
Sindh Sales Tax on trustee fee payable 55 62
Security deposit 100 100

Meezan Financial Planning Fund of Funds - MAAP I

Investment of 3,568,128 units (June 30, 2019: 3,775,285 units) 194,803 194,538

Meezan Strategic Allocation Fund - MCPP - III

Investment of nil units (June 30, 2019: 13,138,233 units) - 677,003

Meezan Strategic Allocation Fund - II - MCPP - IV

Investment of nil units (June 30, 2019: 17,633,059 units) - 908,618

Meezan Strategic Allocation Fund - II - MCPP - V

Investment of nil units (June 30, 2019: 5,140,342 units) - 264,878
 6

December 31, June 30,

2019 2019
(Unaudited) (Audited)
(Rupees in '000)
Meezan Strategic Allocation Fund - II - MCPP - VI
Investment of nil units (June 30, 2019: 4,162,469 units) - 214,489

Meezan Strategic Allocation Fund - II - MCPP - VII

Investment of nil units (June 30, 2019: 2,218,732 units) - 114,330

Meezan Strategic Allocation Fund - II - MCPP - VIII

Investment of nil units (June 30, 2019: 1,692,281 units) - 87,202

Meezan Strategic Allocation Fund - III - MCPP - IX

Investment of nil units (June 30, 2019: 198,820 units) - 10,245

Directors and executives of the Management Company

Investment of 851,205 units (June 30, 2019: 1,743,755 units) 46,472 89,854

Al Meezan Investment Management Limited - Employees Gratuity Fund

Investment of 145,267 units (June 30, 2019: 145,267 units) 7,931 7,486

For the six months period

ended December 31
2019 2018
(Unaudited)
(Rupees in '000)
Transactions during the period

Al Meezan Investment Management Limited - the Management Company

Remuneration for the period 12,710 8,785
Sindh Sales Tax on remuneration of the Management Company 1,652 1,142
Allocated expenses 2,874 878
Selling and marketing expense 7,125 -
Units issued: 14,292 units (December 31, 2018: nil units) 749 -
Units redeemed: 14,292 units (December 31, 2018: nil units) 766 -

Meezan Bank Limited

Profit on saving accounts 1,771 476

Central Depository Company of Pakistan Limited - the Trustee

Remuneration for the period 1,293 1,037
Sindh Sales Tax on trustee fee 168 134
CDS charges 176 15

Meezan Financial Planning Fund of Funds - MAAP - I

Units issued: 5,108,563 units (December 31, 2018: 9 units) 272,138 -
Units redeemed: 5,315,720 units (December 31, 2018: nil units) 277,610 -

Meezan Strategic Allocation Fund - MCPP - III

Units redeemed: 13,138,233 units (December 31, 2018: nil units) 677,395 -

Meezan Strategic Allocation Fund - II - MCPP - IV

Units redeemed: 17,633,059 units (December 31, 2018: nil units) 909,145 -

Meezan Strategic Allocation Fund - II - MCPP - V

Units redeemed: 5,140,342 units (December 31, 2018: nil units) 265,030 -

Meezan Strategic Allocation Fund - II - MCPP - VI

Units redeemed: 4,162,469 units (December 31, 2018: nil units) 214,613 -
 7

For the six months period

ended December 31
2019 2018
(Unaudited)
(Rupees in '000)
Meezan Strategic Allocation Fund - II - MCPP - VII
Units redeemed: 2,218,732 units (December 31, 2018: nil units) 114,396 -

Meezan Strategic Allocation Fund - II - MCPP - VIII

Units redeemed: 1,692,281 units (December 31, 2018: nil units) 87,252 -

Meezan Strategic Allocation Fund - III - MCPP - IX

Units issued: 232,743 units (December 31, 2018: nil units) 12,000 -
Units redeemed: 431,562 units (December 31, 2018: nil units) 22,254 -

Directors and executives of the Management Company

Units issued: 6,367,448 units (December 31, 2018: 3,976 units) 334,795 200
Units redeemed: 7,259,996 units (December 31, 2018: nil units) 382,789 -

12. ALLOCATED EXPENSES

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).

Until June 19, 2019 there was a maximum cap of 0.1% of the average annual net assets of the scheme or actual
whichever is less, for allocation of such expense to the Fund. However, the SECP vide its SRO 639 dated June 20,
2019 removed the maximum cap of 0.1%.

The management company based on its own discretion has currently fixed a maximum capping of 0.1% of the
average annual net assets of the scheme for allocation of such expenses to the Fund for the period from July 1, 2019
to July 21, 2019 and 0.15% for the period from July 22, 2019 to December 31, 2019.

13. SELLING AND MARKETING EXPENSES

Effective from July 22, 2019, the Management Company has started charging selling and marketing expenses to the
Fund. The Management Company, based on its own discretion has currently determined a capping of 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.

14. TOTAL EXPENSE RATIO

Total Expense Ratio (TER) of the Fund for the period ended December 31, 2019 is 1.61% which include 0.35%
representing government levy, Sindh Workers' Welfare Fund and SECP fee.

15. TAXATION

The Fund's income is exempt from income tax as per clause (99) of part I of the Second Schedule to the Income Tax
Ordinance, 2001 subject to the condition that not less than 90 percent of the accounting income for the year as
reduced by capital gains, whether realised or unrealised, is distributed amongst the unitholders. Furthermore, as per
regulation 63 of the NBFC Regulations, the Fund is required to distribute 90 percent of the net accounting income
other than capital gains to the unitholders. The Fund has not recorded any tax liability in respect of income relating to
the current period as the Management Company intends to distribute at least 90 percent of the Fund's accounting
income for the year ending June 30, 2020 as reduced by capital gains (whether realised or unrealised) to its
unitholders.

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.

16. FINANCIAL INSTRUMENTS - FAIR VALUES

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.
 8

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 tradeable in an open market are revalued at 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.

16.1 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: Fair value measurements using quoted price (unadjusted) in an active market for identical assets or
liabilities.

- Level 2: Fair value measurements using inputs other than quoted prices included within level 1 that are
observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

- Level 3: Fair value measurement using inputs for the asset or liability that are not based on observable market
data (i.e. unobservable inputs).

As at December 31, 2019 and June 30, 2019, the Fund held the following financial instruments measured at fair
value:

As at December 31, 2019

Level 1 Level 2 Level 3 Total
ASSETS --------------------------------------- (Rupees in '000) ---------------------------------------

Financial assets 'at fair value through profit or loss'

Sukuk Certificates - 1,112,236 - 1,112,236

As at June 30, 2019

Level 1 Level 2 Level 3 Total
ASSETS --------------------------------------- (Rupees in '000) ---------------------------------------

Financial assets 'at fair value through profit or loss'

Sukuk Certificates - 1,124,715 - 1,124,715

17. GENERAL

17.1 Figures have been rounded off to the nearest thousand rupees.

17.2 Corresponding figures have been reclassified and rearranged in these condensed interim financial statements,
wherever necessary, for the purpose of better presentation. No significant rearrangements or reclassifications were
made in these condensed interim financial statements.

18. DATE OF AUTHORISATION

February 10, 2020
These condensed interim financial statements were authorised for issue on ___________ by the Board of Directors of
the Management Company.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
 CHALLENGING THE MARKET
Meezan IN THE CITY OF WRESTLERS
Cash Fund

Gujranwala Branch
MEEZAN CASH FUND (MCF)
Meezan Cash Fund is Pakistan’s first Shariah compliant Money
Market Fund. MCF aims to seek maximum possible preservation of
capital and a reasonable rate of return via investing primarily in liquid
Shariah compliant money market and debt securities. NISHAN-E-MANZIL
(GUJRANWALA)
 CHALLENGING THE MARKET
Meezan IN THE CITY OF WRESTLERS
Cash Fund

Gujranwala Branch
MEEZAN CASH FUND (MCF)
Meezan Cash Fund is Pakistan’s first Shariah compliant Money
Market Fund. MCF aims to seek maximum possible preservation of
capital and a reasonable rate of return via investing primarily in liquid
Shariah compliant money market and debt securities. NISHAN-E-MANZIL
(GUJRANWALA)
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. Mohammad Shoaib, CFA Chief Executive Officer
Mr. Muhammad Abdullah Ahmed Nominee Director - MBL
Mr. Mohammad Furquan R Kidwai Independent Director
Mr. ljaz Farooq Nominee Director - MBL
Mr. Moin M. Fudda Independent Director
Ms. Saima Kamila Khan Independent Director
Mr. Arshad Majeed Nominee Director - MBL
Mr. Naeem Abdul Sattar Nominee Director - PKIC
Syed Amir Ali Zaidi Nominee Director – PKIC

CFO & COMPANY SECRETARY OF THE MANAGEMENT COMPANY

Syed Owais Wasti

AUDIT COMMITTEE
Mr. Moin M. Fudda Chairman
Mr. Arshad Majeed Member
Mr. Naeem Abdul Sattar Member

RISK MANAGEMENT COMMITTEE

Mr. Muhammad Abdullah Ahmed Chairman
Syed Amir Ali Zaidi Member
Mr. Naeem Abdul Sattar Member

HUMAN RESOURSE & REMUNERATION COMMITTEE

Mr. Moin M. Fudda Chairman
Mr. Ariful Islam Member
Mr. Naeem Abdul Sattar 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
Askari Bank Limited - Islamic Banking MCB Bank Limited
Bank Al Habib Limited - Islamic Banking MCB Islamic Bank Limited
Bank Alfalah Limited Meezan Bank Limited
Dubai Islamic Bank Pakistan Limited National Bank of Pakistan - Islamic Banking
Faysal Bank Limited - Islamic Banking Sindh Bank Limited
Habib Bank Limited -Islamic Banking UBL Ameen - 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:

TRANSFER AGENT
Meezan Bank Limited
Meezan House
C-25, Estate Avenue, SITE, Karachi.
Phone: 38103538 Fax: 36406017
Website: www.meezanbank.com

DISTRIBUTORS
Al Meezan Investment Management Limited
Meezan Bank Limited
MEEZAN CASH FUND
CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES
AS AT DECEMBER 31, 2019

December 31, June 30,

2019 2019
(Unaudited) (Audited)
Note (Rupees in '000)
Assets
Balances with banks 5 7,400,658 2,580,335
Investments 6 2,819,954 6,270,999
Receivable against conversion of units 147,363 130,600
Profit receivable 85,728 92,348
Deposits and prepayments 440 579
Total assets 10,454,143 9,074,861

Liabilities
Payable to Al Meezan Investment Management Limited - the Management 8 17,240 11,306
Company
Payable to Central Depository Company of Pakistan Limited - the Trustee 10 634 834
Payable to the Securities and Exchange Commission of Pakistan 11 1,058 8,764
Payable against conversion and redemption of units 47,420 98,921
Accrued expenses and other liabilities 9 79,434 103,948
Total liabilities 145,786 223,773

Net assets 10,308,357 8,851,088

Contingencies and commitments 7

Unit holders’ fund (as per statement attached) 10,308,357 8,851,088

(Number of units)

Number of units in issue 193,151,850 175,362,634

(Rupees)

Net asset value per unit 53.3692 50.4731

The annexed notes 1 to 19 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN CASH FUND
CONDENSED INTERIM INCOME STATEMENT (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

Six months period ended Quarter ended

December 31, December 31,
Note 2019 2018 2019 2018
(Rupees in '000) (Rupees in '000)
Income
Net realised (loss) / gain on sale of investments (158) 3,470 (158) 3,470
Profit on term deposit receipts 131,894 32,831 48,888 19,574
Profit on sukuk certificates 118,987 36,735 60,073 28,239
Profit on Bai Muajjal 21,001 - 5,928 -
Profit on saving accounts with banks 400,363 359,748 216,909 202,527
Total income 672,087 432,784 331,640 253,810

Expenses
Remuneration of Al Meezan Investment Management Limited
- the Management Company 8 34,256 54,441 15,174 29,091
Sindh Sales Tax on remuneration of the Management Company 4,453 7,077 1,973 3,782
Selling and marketing expenses 14 18,637 - 10,116 -
Allocated expenses 12 7,619 5,444 3,794 2,909
Remuneration of Central Depository Company of Pakistan
Limited - the Trustee 10 3,438 4,401 1,644 2,312
Sindh Sales Tax on remuneration of the Trustee 447 572 214 300
Annual fee to the Securities and Exchange Commission
of Pakistan 11 1,058 4,083 506 2,182
Auditors' remuneration 327 305 188 159
Fees and subscription 704 646 352 352
Brokerage expense 278 10 278 10
Bank and settlement charges 512 226 502 214
Provision for Sindh Workers' Welfare Fund (SWWF) 12,007 7,110 5,938 4,249
Printing expense - 90 - 44
Total expenses 83,736 84,405 40,679 45,604

Net income for the period before taxation 588,351 348,379 290,961 208,206

Taxation 16 - - -

Net income for the period after taxation 588,351 348,379 290,961 208,206

Allocation of net income for the period

Net income for the period after taxation 588,351 348,379
Income already paid on units redeemed (185,610) (98,501)
402,741 249,878

Accounting income available for distribution

- Relating to capital gains - 3,470
- Excluding capital gains 402,741 246,408
402,741 249,878

The annexed notes 1 to 19 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN CASH FUND
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

Six months period Quarter ended,

December 31, December 31,
2019 2018 2019 2018
(Rupees in '000) (Rupees in '000)

Net income for the period after taxation 588,351 348,379 290,961 208,206

Other comprehensive income - - - -

Total comprehensive income for the period 588,351 348,379 290,961 208,206

The annexed notes 1 to 19 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN CASH FUND
CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS’ FUND (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

Six months period ended Six months period ended

December 31, 2019 December 31, 2018
Undistributed Undistributed
Capital Value Total Capital Value Total
income income
-------------------------------------------------(Rupees in -------------------------------------------------(Rupees
'000)------------------------------------------------- in '000)-----------------------------------------------

Net assets at the beginning of the period 8,807,969 43,119 8,851,088 9,707,096 213,856 9,920,952

Issuance of 336,293,743 units

(December 31, 2018: 300,538,790 units)
- Capital value (at net asset value per unit at
the beginning of the period) 16,973,788 - 16,973,788 15,156,622 - 15,156,622
- Element of income 388,440 - 388,440 264,923 - 264,923
Total proceeds on issuance of units 17,362,228 - 17,362,228 15,421,545 - 15,421,545

Redemption of 318,504,527 units

(December 31, 2018: 244,313,039 units)
- Capital value (at net asset value per unit at the
beginning of the period) 16,075,911 - 16,075,911 12,321,073 - 12,321,073
- Element of loss 231,789 185,610 417,399 116,074 98,501 214,575
Total payments on redemption of units 16,307,700 185,610 16,493,310 12,437,147 98,501 12,535,648

Total comprehensive income for the period - 588,351 588,351 - 348,379 348,379
Distribution during the period - - - - (178,008) (178,008)
Refund of capital - - - (230,343) - (230,343)
Net income for the period less distribution - 588,351 588,351 (230,343) 170,371 (59,972)

Net assets at the end of the period 9,862,497 445,860 10,308,357 12,461,151 285,726 12,746,877

Undistributed income brought forward

- Realised income 43,119 213,856
- Unrealised income - -
43,119 213,856
Accounting income available for distribution
- Relating to capital gains - 3,470
- Excluding capital gains 402,741 246,408
402,741 249,878
Distribution during the period: nil [December 31, 2018:
Rs. 2.1649 per unit i.e. 4.33% of the par value of Rs. 50/-
each (July 6, 2018)] - (178,008)

Undistributed income carried forward 445,860 285,726

Undistributed income carried forward

- Realised income 445,860 285,726
- Unrealised income - -
445,860 285,726

(Rupees) (Rupees)
Net assets value per unit at the beginning of the period 50.4731 52.5964
Net assets value per unit at the end of the period 53.3692 52.0600

The annexed notes 1 to 19 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN CASH FUND
CONDENSED INTERIM CASH FLOW STATEMENT (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

Six months period ended

December 31,
Note 2019 2018
(Rupees in '000)
CASH FLOWS FROM OPERATING ACTIVITIES

Net income for the period before taxation 588,351 348,379

Decrease / (Increase) in assets

Investments - net 601,045 (1,082,183)
Deposits and prepayments 139 136
Profit receivable 6,620 (34,560)
607,804 (1,116,607)
(Decrease) / Increase in liabilities
Payable to Al Meezan Investment Management Limited - Management Company 5,934 2,744
Payable to Central Depository Company of Pakistan Limited - Trustee (200) 173
Payable to Securities and Exchange Commission of Pakistan (7,706) (1,453)
Accrued expenses and other liabilities (24,514) 9,012
(26,486) 10,476

Net cash generated from / (used in) operating activities 1,169,669 (757,752)

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts against issuance and conversion of units 17,345,465 15,078,060

Payments against redemption and conversion of units (16,544,811) (12,682,279)
Dividend paid - (178,008)
Net cash generated from financing activities 800,654 2,217,773

Net increase in cash and cash equivalents during the period 1,970,323 1,460,021
Cash and cash equivalents at the beginning of the period 5,430,335 10,127,637

Cash and cash equivalents at the end of the period 5.2 7,400,658 11,587,658

The annexed notes 1 to 19 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN CASH FUND
NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

1. LEGAL STATUS AND NATURE OF BUSINESS

1.1 Meezan Cash 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 May 14, 2009 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 licensed by the 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, Shahrah-e-
Faisal, Karachi 74400, Pakistan.

1.2 The Fund has been formed to provide the unit holders with safe and stable stream of halal income on their investments
and to generate superior long term risk adjusted returns. The Fund shall also keep exposure in short-term instruments
for the purpose of maintaining liquidity and to capitalise on exceptional returns if available at any given point in time.
The Fund shall seek to maximise preservation of capital and a reasonable rate of return via investing primarily in liquid
Shariah compliant money market and Shariah compliant debt securities. Under the trust deed, all the conducts and
acts of the Fund are based on Shariah principles. Meezan Bank Limited 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 categorized as an open-end Shariah Compliant (Islamic) Money Market Scheme 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.

1.4 The Management Company has been assigned a quality rating of AM1 by VIS Credit Rating Company Limited dated
December 31, 2019 (2018: AM1 dated December 28, 2018) and by PACRA dated December 28, 2019. The rating
reflects the Company’s experienced management team, structured investment process and sound quality of systems
and processes. The Fund has been given a stability rating of AA(f) by VIS Credit Rating Company Limited.

1.5 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.

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 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.

3. BASIS OF PREPARATION

3.1 STATEMENT OF COMPLIANCE

These condensed interim financial statements have been prepared in accordance with the accounting and reporting
standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards applicable
in Pakistan for interim financial reporting comprise of:

- International Accounting Standard (IAS) 34, Interim Financial Reporting, 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 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, (the NBFC Regulations) and the requirements of
the Trust Deed.

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 with the
requirements of IAS 34, 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.
 2

The disclosures made in these condensed interim financial statements have, however, been limited based on the
requirements of the International Accounting Standard 34: 'Interim Financial Reporting'. These condensed interim
financial statements do not include all the information and disclosures required in a full set of financial statements and
should be read in conjunction with the annual published audited financial statements of the Fund for the year ended
June 30, 2019.

These condensed interim financial statements are unaudited. However, a limited scope review has been performed by
the statutory auditors. In compliance with Schedule V of the NBFC Regulations, the directors of the Management
Company declare that these condensed interim financial statements give a true and fair view of the state of affairs of
the Fund as at December 31, 2019.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, JUDGEMENTS AND RISK

MANAGEMENT

4.1 The accounting policies adopted and the methods of computation of balances used in the preparation of these
condensed interim financial statements are the same as those applied in the preparation of the annual financial
statements of the Fund for the year ended June 30, 2019.

4.2 The preparation of the condensed interim financial statements in conformity with accounting and reporting standards
as applicable in Pakistan requires management to make estimates, assumptions and use judgments that affect the
application of policies and reported amounts of assets, liabilities, income and expenses. Estimates, assumptions and
judgments are continually evaluated and are based on historical experience and other factors, including reasonable
expectations of future events. Revisions to accounting estimates are recognised prospectively commencing from the
period of revision. In preparing the condensed interim financial statements, the significant judgments made by
management in applying the Fund’s accounting policies and the key sources of estimation and uncertainty were the
same as those applied to the financial statements as at and for the year ended June 30, 2019. The Fund’s financial
risk management objectives and policies are consistent with those disclosed in the annual financial statements of the
Fund for the year ended June 30, 2019.

4.3 Standards and amendments to published accounting and reporting standards that are effective in the current
period

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, 2019. However, these do not have any significant impact on the Fund's
operations and, therefore, have not been detailed in these condensed interim financial statements.

4.4 Standards, interpretations and amendments to published accounting and reporting standards that are not yet
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, 2020
- IAS 8 - 'Accounting policies, change in accounting
estimates and errors' (amendment) January 1, 2020

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 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, 2020. However, these do not have any significant
impact on the Fund's operations and, therefore, have not been detailed in these condensed interim financial
statements.

December 31, June 30,

2019 2019
(Unaudited) (Audited)
5. BALANCES WITH BANKS Note (Rupees in '000)

In saving accounts 5.1 7,399,912 2,579,578

In current accounts 746 757
7,400,658 2,580,335

5.1 The balances in saving accounts have an expected profit ranging from 3.00 % to 13.50 % per annum (June 30, 2019:
3.32% to 12.50% per annum).
 3

December 31, June 30,

2019 2019
(Unaudited) (Audited)
5.2 Cash and cash equivalents Note (Rupees in '000)

Balances with banks 5 7,400,658 2,580,335

Term deposit receipts - having original
maturity of 3 months or less 6 - 2,850,000
7,400,658 5,430,335

6. INVESTMENTS

At fair value through profit or loss

Corporate sukuks 6.1 600,000 675,000
Commercial papers 6.2 1,347,954 1,471,289
Term deposit receipts - having original
maturity of 3 months or less 6.3 - 2,850,000
Bai muajjal receivable 6.4 872,000 1,274,710
2,819,954 6,270,999

6.1 Corporate Sukuks

Percentage in
Sales / Carrying Market relation to
Purchased matured As at value as value as Unrealised Total
As at July
Maturity Profit during the during December at at appreciation/ Net market
Name of the Security 1, 2019
date rate period the 31, 2019 December December (dimunition) assets of value of
period 31, 2019 31, 2019 the fund invest-
ments
------------------------ Number of certificates ------------------------ ----------- (Rs in '000) ---------- -----------(%)----------

Hub Pow er Company October 3 month KIBOR 135,000 - 135,000 - - - - - -

Limited - II (A1+, 2, 2019 plus base rate
PACRA) (note 6.1.1) of 1.00%

Hub Pow er Company May 21, 3 month KIBOR - 6,000 - 6,000 600,000 600,000 - 5.82% 21.28%
Limited - V (AA+, 2020 plus base rate
PACRA) (note 6.1.2) of 1.50%

Total as at Decem ber 31, 2019 600,000 600,000

Total as at June 30, 2019 675,000 675,000

6.1.1 The nominal value of the sukuk certificates is Rs 5,000 each.

6.1.2 The nominal value of the sukuk certificates is Rs 100,000 each.

6.2 Commercial papers

Percentage in
Sales /
relation to
redemp- Carrying Market
Purchases As at Unrealised Total
As at July tions / value as at value as at
Name of the Maturity during the December appreciation/ Net market
Profit rate 1, 2019 maturity December Decmber
security date period 31, 2019 (dimunition) assets of value of
during the 31, 2019 31, 2019
the fund invest-
period
ments
(Number of certificates) (Rupees in '000) -----------(%)----------

K-Electric Limited September 6 month KIBOR 1,500 - 1,500 - - - - - -

CP II (note 6.2.1) 2, 2019 plus base rate
of 0.90%

K-Electric Limited March 19, 6 month KIBOR - 1,390 - 1,390 1,347,954 1,347,954 - 13.08% 47.80%
CP III (note 6.2.1) 2020 plus base rate
of 1.30%

Total as at Decem ber 31, 2019 1,390 1,347,954 1,347,954

Total as at June 30, 2019 1,500 1,471,289 1,471,289

 4

6.2.1 The nominal value of these commercial papers is Rs 1,000,000 each.

6.2.2 The securities are valued on the basis of amortization to its face value as per the requirements of Circular 33 of 2012
with respect to thinly and non traded debt securities with residual maturity of upto six months.

6.3 Term deposit receipts

Percentage
Term deposit
Matured As at in relation to
As at July 1, receipts
Profit rate during the December Total market
Name of the bank Maturity 2019 placed during
period 31, 2019 value of
the period
investment
% ---------------- (Rupees in '000) ---------------- ----(%)----

Faysal Bank Limited September 6, 2019 10.75% 450,000 - 450,000 - -

Askari Bank Limited September 3, 2019 12.05% 1,200,000 - 1,200,000 - -
UBL - Ameen September 12, 2019 12.10% 1,200,000 - 1,200,000 - -
Meezan Bank Limited December 2, 2019 13.50% - 1,000,000 1,000,000 - -
Askari Bank Limited December 11, 2019 13.10% - 1,020,000 1,020,000 - -

Total as at Decem ber 31, 2019 - -

Total as at June 30, 2019 2,850,000 45.00%

6.4 Bai Muajjal Receivable

The Fund entered in a Bai Muajjal Transaction with Pak Brunei Investment Company Limited on December 13, 2019
against K-Electric Limited Commercial Paper III (issued on September 19, 2019) at an effective interest rate of
13.15%. The final payment is agreed to be received on June 12, 2020. The final transaction price is Rs. 922.860
million which includes deferred profit of Rs. 56.788 million.

6.4.1 The carrying amount of the Bai Muajjal receivable includes accrued profit amounting to Rs. 5.928 million.

7. CONTINGENCIES AND COMMITMENTS

There were no contingencies and commitments outstanding as at December 31, 2019 and June 30, 2019.

8. PAYABLE TO AL MEEZAN INVESTMENT MANAGEMENT LIMITED - MANAGEMENT COMPANY

As per regulation 61 of the NBFC Regulations, 2008, the Management Company is entitled to a remuneration equal to
an amount not exceeding 1% of the average annual net assets in case of Money Market Scheme. Keeping in view the
maximum allowable threshold, the Management Company has charged its remuneration at the rate of 1% (2018: 1%)
per annum of the average net assets from July 1, 2019 to July 21, 2019. Effective from July 22, 2019, the
management company has reduced the rate of remuneration from 1% to 0.6% of average annual net assets of the
fund.

December 31, June 30,

2019 2019
(Unaudited) (Audited)
9. ACCRUED EXPENSES AND OTHER LIABILITIES Note (Rupees in '000)

Provision for Sindh Workers' Welfare Fund (SWWF) 9.1 42,903 30,896
Withholding tax and capital gain tax payable 8,143 44,483
Provision for Federal Excise Duty and related Sindh Sales tax
on remuneration of the management company 9.2 27,018 27,018
Shariah advisor fee payable 606 472
Brokerage expense payable 152 85
Auditors' remuneration 279 335
Printing expense payable 112 111
Other expenses 116 -
Zakat payable 105 548
79,434 103,948
 5

9.1 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, is 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 has 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, the MUFAP had 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 (i.e. starting from May 21, 2015).

Had the provision for SWWF not been recorded in these condensed interim financial statements of the Fund for the
period from May 21, 2015 to December 31, 2019, the net asset value per unit of the Fund as at December 31, 2019
would have been higher by Re 0.22 (June 30, 2019: Re 0.18).

9.2 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 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.

With effect from July 1, 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 1, 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 27.018 million is being retained in these
condensed interim 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 0.14 (June 30, 2019:
Re 0.15) per unit.

10. PAYABLE TO CENTRAL DEPORSITORY COMPANY OF PAKISTAN LIMITED - TRUSTEE

The Trustee is entitled to a monthly remuneration for services rendered to the Fund under the provisions of the trust
deed. Effective from July 1, 2019, the trustee has revised its tariff as under:

Previous Tariff Revised Tariff

Net Assets (Rs.) Fee (Flat Rate)
Upto Rs. 1 billion 0.15% per annum of net assets 0.065% per
From Rs. 1 billion to Rs. 10 billion Rs 1.5 million plus 0.075% per annum of net assets exceeding Rs 1 billion. annum of Net
Exceeding Rs. 10 billion Rs 8.25 million plus 0.06% per annum of net assets exceeding Rs 10 billion. Assets.

Accordingly, the Fund has charged Trustee Fee @ 0.065% per annum during the current period.

11. PAYABLE TO THE SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN (SECP)

In accordance with the NBFC Regulations, a Collective Investment Scheme (CIS) is required to pay annual fee to the
Securities and Exchange Commission of Pakistan (SECP).

Effective from July 1, 2019, the SECP vide SRO No. 685(I)/2019 dated June 28, 2019, revised the rate of annual fee
to 0.02% of net assets, applicable on all categories of CISs. Previously, the rate of annual fee applicable to money
market fund was 0.075%. Accordingly, the Fund has charged SECP Fee at the rate of 0.02% of net assets during the
current period.
 6

12. ALLOCATED EXPENSES

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).

Until June 19, 2019 there was a maximum cap of 0.1% of the average annual net assets of the scheme or actual
whichever is less, for allocation of such expense to the Fund. However, the SECP vide its SRO 639 dated June 20,
2019 removed the maximum cap of 0.1%.

The management company based on its own discretion has currently fixed a maximum capping of 0.1% of the average
annual net assets of the scheme for allocation of such expenses to the Fund for the period from July 1, 2019 to July
21, 2019 and 0.15% for the period from July 22, 2019 to December 31, 2019.

13. TOTAL EXPENSE RATIO

The Total Expense Ratio (TER) of the Fund for the period ended December 31, 2019 is 1.58% which include 0.34%
representing government levy, Sindh Workers' Welfare Fund and SECP fee.

14. SELLING AND MARKETING EXPENSES

Effective from July 22, 2019, the Management Company has started charging selling and marketing expenses to the
Fund. The Management Company, based on its own discretion has currently determined a capping of 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.

15. TRANSACTIONS WITH CONNECTED PERSONS / RELATED PARTIES

Connected persons include Al Meezan Investment Management Limited being the Management Company, the Central
Depository Company of Pakistan Limited being the Trustee, Meezan Bank Limited being the holding company of the
Management Company, Directors and Executives of the Management Company, other funds under the common
management of 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 are in the normal course of business, at contracted rates and terms determined
in accordance with market rates.

Remuneration payable to the Management Company and the Trustee is determined in accordance with the provisions
of the NBFC Regulations and the Trust Deed respectively.

Details of transactions with connected persons and balances with them are as follows:
December 31, June 30,
2019 2019
(Unaudited) (Audited)
(Rupees in '000)
Al Meezan Investment Management Limited - the Management Company
Remuneration payable 5,165 9,192
Sindh Sales Tax payable on management fee 671 1,195
Selling and marketing expenses 10,116 -
Allocated expenses payable 1,288 919

Meezan Bank Limited

Balance with bank 104,675 131,399
Profit receivable on saving accounts 969 170
 7

December 31, June 30,

2019 2019
(Unaudited) (Audited)
(Rupees in '000)
Central Depository Company of Pakistan Limited - the Trustee
Trustee fee payable 561 738
Sindh Sales Tax on trustee fee payable 73 96
Security deposit 100 100

Meezan Financial Planning Fund of Funds

- Aggressive Allocation Plan
Investment of nil units (June 30, 2019: 898,802 units) - 45,365

Meezan Financial Planning Fund of Funds

- Conservative Allocation Plan
Investment of nil units (June 30, 2019: 1,628,815 units) - 82,211

Meezan Financial Planning Fund of Funds

- Moderate Allocation Plan
Investment of nil units (June 30, 2019: 1,000,001 units) - 50,473

Meezan Financial Planning Fund of Funds - MAAP - I

Investment of 221 units (June 30, 2019: 8,448 units) 12 426

Meezan Strategic Allocation Fund - MSAP - I

Investment of 4 units (June 30, 2019: nil) - -

Meezan Strategic Allocation Fund - MSAP - II

Investment of nil units (June 30, 2019: 1,616 units) - 82

Meezan Strategic Allocation Fund - MSAP - III

Investment of nil units (June 30, 2019: 116,450 units ) - 5,878

Meezan Strategic Allocation Fund - MSAP - IV

Investment of nil units (June 30, 2019: 158,203 units) - 7,985

Meezan Strategic Allocation Fund - MSAP - V

Investment of nil units (June 30, 2019: 786,614 units) - 39,703

Meezan Strategic Asset Allocation Fund - MCPP - III

Investment of 19 units (June 30, 2019: nil units) 1 -

Meezan Strategic Allocation Fund-II - MCPP - V

Investment of 44 units (June 30, 2019: nil units) 2 -

Meezan Strategic Allocation Fund II- MCPP - VI

Investment of 42 units (June 30, 2019: nil units) 2 -

Meezan Strategic Allocation Fund II- MCPP - VII

Investment of 2 units (June 30, 2019: nil units) - -

Meezan Strategic Allocation Fund II- MCPP - VIII

Investment of 7 units (June 30, 2019: nil units) - -

Meezan Strategic Allocation Fund II- MCPP - IX

Investment of nil units (June 30, 2019: 64,627units) - 3,262

Directors and executives of the Management Company

Investment of 407,080 units (June 30, 2019: 485,288 units) 21,726 24,494
 8

Six months period ended

December 31,
2019 2018
(Unaudited) (Unaudited)
(Rupees in '000)
Al Meezan Investment Management Limited - the Management Company
Remuneration for the period 34,256 54,441
Sindh Sales Tax on remuneration of Management Company 4,453 7,077
Selling and marketing expense 18,637 -
Allocated expenses 7,619 5,444
Units issued: 16 units (December 31, 2018: 992 units) 1 -
Units redeemed: 16 units (December 31, 2018: nil units) 1 -

Meezan Bank Limited

Profit on saving accounts 2,995 1,980
Term deposit receipt placed 1,000,000 -
Term deposit matured 1,000,000 -
Profit on term deposit receipt 33,623 -

Central Depository Company of Pakistan Limited - the Trustee

Trustee fee for the period 3,438 4,401
Sindh Sales Tax on remuneration of the trustee 447 572
CDS charges 3 4

Meezan Financial Planning Fund of Funds

- Aggressive Allocation Plan
Units issued: nil units (December 31, 2018: 99,756 units) - 5,061
Units redeemed: 898,802 units (December 31, 2018: 214,809 units) 45,839 11,088
Dividend paid - 2,304
Refund of capital - 257

Meezan Financial Planning Fund of Funds

- Conservative Allocation Plan
Units issued: nil units (December 31, 2018: 251,200 units) - 12,805
Units redeemed: 1,628,815 units (December 31, 2018: 558,850 units) 83,034 28,646
Dividend paid - 3,957
Refund of capital - 410

Meezan Financial Planning Fund of Funds

- Moderate Allocation Plan
Units issued: nil units (December 31, 2018: 63,204 units) - 3,187
Units redeemed: 1,000,001 units (December 31, 2018: 393,693 units) 50,914 20,104
Dividend paid - 2,766
Refund of capital - 421

Meezan Financial Planning Fund of Funds - MAAP - I

Units issued: 3,821,029 units (December 31, 2018: 24,238 units) 196,322 1,223
Units redeemed: 3,829,256 units (December 31, 2018: 540,004 units) 199,398 27,840
Dividend paid - 855
Refund of capital - 368

Meezan Financial Planning Fund of Funds - MAAP - IV

Units issued: nil units (December 31, 2018: 7,368,899 units) - 372,084
Units redeemed: nil units (December 31, 2018: 8,331,559 units) - 421,491
Dividend paid - 1,833
Refund of capital - 251
 9

Six months period ended

December 31,
2019 2018
(Unaudited) (Unaudited)
(Rupees in '000)
Meezan Strategic Allocation Fund - MSAP - I
Units issued: 11,301,674 units (December 31, 2018: 78,130 units) 596,752 3,941
Units redeemed: 11,301,670 units (December 31, 2018: 1,898,170 units) 597,678 97,777
Dividend paid - 3,863
Refund of capital - 78

Meezan Strategic Allocation Fund - MSAP - II

Units issued: nil units (December 31, 2018: 70,389 units) - 3,550
Units redeemed: 1,616 units (December 31, 2018: 1,333,927 units) 83 68,750
Dividend paid - 3,550

Meezan Strategic Allocation Fund - MSAP - III

Units issued: nil units (December 31, 2018: 127,316 units) - 6,421
Units redeemed: 116,450 units (December 31, 2018: 1,865,726 units) 5,926 96,330
Dividend paid - 6,326
Refund of capital - 95

Meezan Strategic Allocation Fund - MSAP - IV

Units issued: nil units (December 31, 2018: 151,285 units) - 7,630
Units redeemed: 158,203 units (December 31, 2018: 2,594,974 units) 8,082 133,600
Dividend paid - 7,528
Refund of capital - 102

Meezan Strategic Allocation Fund - MSAP - V

Units issued: nil units (December 31, 2018: 92,100 units) - 4,644
Units redeemed: 786,614 units (December 31, 2018: 796,120 units) 40,274 41,090
Dividend paid - 3,312
Refund of capital - 1,332

Meezan Strategic Asset Allocation Fund - MCPP-III

Units Issued: 37,706,480 units (December 31, 2018: 9,595,642 units) 1,920,788 490,577
Units redeemed: 37,706,461 units (December 31, 2018: 10,095,802 units) 1,944,923 517,044
Dividend paid - 16,480
Refund of capital - 33,815

Meezan Strategic Allocation Fund II- MCPP - IV

Units issued: 25,324,885 units (December 31, 2018: 18,231,373 units) 1,281,258 929,605
Units redeemed: 25,324,885 units (December 31, 2018: 19,110,914 units) 1,295,287 977,640
Dividend paid - 13,834
Refund of capital - 59,534

Meezan Strategic Allocation Fund II- MCPP - V

Units issued: 7,369,902 units (December 31, 2018: 8,681,998 units) 372,855 441,001
Units redeemed: 7,369,858 units (December 31, 2018: 7,275,649 units) 375,734 371,770
Dividend paid - 1,360
Refund of capital - 19,413

Meezan Strategic Allocation Fund II- MCPP - VI

Units issued: 5,855,367 units (December 31, 2018: 14,282,003 units) 296,207 727,000
Units redeemed: 5,855,325 units (December 31, 2018: 4,470,669) 298,555 228,796
 10

Six months period ended

December 31,
2019 2018
(Unaudited) (Unaudited)
(Rupees in '000)
Meezan Strategic Allocation Fund II- MCPP - VII
Units issued: 3,058,519 units (December 31, 2018: 7,633,163 units) 154,708 393,500
Units redeemed: 3,058,517 units (December 31, 2018: 2,250,089 units) 155,937 116,160

Meezan Strategic Allocation Fund II- MCPP - VIII

Units issued: 4,124,642 units (December 31, 2018: 211,552 units) 209,083 11,000
Units redeemed: 4,124,635 units (December 31, 2018: nil units) 209,717 -

Meezan Strategic Allocation Fund III- MCPP - IX

Units issued: 1,474,895 units (December 31, 2018: Nil units) 74,789 -
Units redeemed: 1,539,522 units (December 31, 2018: nil units) 78,256 -

Directors and Executives of the Management Company

Units issued: 475,083 units (December 31, 2018: 621,671 units) 24,551 31,805
Units redeemed: 552,422 units (December 31, 2018: 464,066 units) 28,532 13,832

16. TAXATION

The Fund's income is exempt from income tax as per clause (99) of part I of the Second Schedule to the Income Tax
Ordinance, 2001 subject to the condition that not less than 90 percent of the accounting income for the year as
reduced by capital gains, whether realised or unrealised, is distributed amongst the unit holders. Furthermore, as per
regulation 63 of the NBFC Regulations, the Fund is required to distribute 90 percent of the net accounting income
other than capital gains to the unit holders. The Fund has not recorded any tax liability in respect of income relating to
the current period as the Management Company intends to distribute at least 90 percent of the Fund's accounting
income for the year ending June 30, 2020 as reduced by capital gains (whether realised or unrealised) to its unit
holders.

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.

17. FINANCIAL INSTRUMENTS

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.

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).
 11

As at December 31, 2019, the Fund held the following financial instruments measured at fair values:

As at December 31, 2019

Level 1 Level 2 Level 3 Total
ASSETS --------------------------------------- (Rupees in '000) ---------------------------------------

Financial assets 'at fair value through profit or loss'

Corporate sukuks - 600,000 - 600,000
Commercial papers* - 1,347,954 - 1,347,954
Bai Muajjal receivable - 872,000 - 872,000
- 2,819,954 - 2,819,954

As at June 30, 2019

Level 1 Level 2 Level 3 Total
ASSETS --------------------------------------- (Rupees in '000) ---------------------------------------

Financial assets 'at fair value through profit or loss'

Corporate sukuks - 675,000 - 675,000
Commercial papers* - 1,471,289 - 1,471,289
Term deposit receipts - 2,850,000 - 2,850,000
Bai Muajjal receivable - 1,274,710 - 1,274,710
- 6,270,999 - 6,270,999

* The valuation of commercial papers has been done based on amortisation of commercial paper to its face value as
per the guidelines given in Circular 33 of 2012 since the residual maturity of this investment is less than six months
and they are placed with counterparties which have high credit rating.

18. GENERAL

18.1 Figures have been rounded off to the nearest thousand rupees.

18.2 Corresponding figures have been rearranged and reclassified, wherever necessary, for the purpose of better
presentation. No significant rearrangements or reclassifications were made in these condensed interim financial
statements during the period.

19 DATE OF AUTHORISATION
February 10, 2020
These condensed interim financial statements were authorised for issue on ______ by the Board of Directors of the
Management Company.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
 BUILDING ON THE VALUES OF
Meezan
Rozana Amdani Fund
GROWTH IN THE CITY OF FLOWERS

MEEZAN ROZANA Peshawar Branch

AMDANI FUND (MRAF)
Meezan Rozana Amdani Fund the objective of the Fund is to meet liquidity needs
of investors by providing investors a daily payout through investment in Shariah
Compliant money market instruments.

The Fund shall be subject to such exposure limits as are specified in the Rules, the
Regulations and directives issued by SECP from time to time. The Fund will make KHYBER PASS
daily payout to the unit holders, which will be reinvested. (PESHAWAR)
 BUILDING ON THE VALUES OF
Meezan
Rozana Amdani Fund
GROWTH IN THE CITY OF FLOWERS

MEEZAN ROZANA Peshawar Branch

AMDANI FUND (MRAF)
Meezan Rozana Amdani Fund the objective of the Fund is to meet liquidity needs
of investors by providing investors a daily payout through investment in Shariah
Compliant money market instruments.

The Fund shall be subject to such exposure limits as are specified in the Rules, the
Regulations and directives issued by SECP from time to time. The Fund will make KHYBER PASS
daily payout to the unit holders, which will be reinvested. (PESHAWAR)
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. Mohammad Shoaib, CFA Chief Executive Officer
Mr. Muhammad Abdullah Ahmed Nominee Director - MBL
Mr. Mohammad Furquan R Kidwai Independent Director
Mr. ljaz Farooq Nominee Director - MBL
Mr. Moin M. Fudda Independent Director
Ms. Saima Kamila Khan Independent Director
Mr. Arshad Majeed Nominee Director - MBL
Mr. Naeem Abdul Sattar Nominee Director - PKIC
Syed Amir Ali Zaidi Nominee Director – PKIC

CFO & COMPANY SECRETARY OF THE MANAGEMENT COMPANY

Syed Owais Wasti

AUDIT COMMITTEE
Mr. Moin M. Fudda Chairman
Mr. Arshad Majeed Member
Mr. Naeem Abdul Sattar Member

RISK MANAGEMENT COMMITTEE

Mr. Muhammad Abdullah Ahmed Chairman
Syed Amir Ali Zaidi Member
Mr. Naeem Abdul Sattar Member

HUMAN RESOURSE & REMUNERATION COMMITTEE

Mr. Moin M. Fudda Chairman
Mr. Ariful Islam Member
Mr. Naeem Abdul Sattar 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
Askari Bank Limited - Islamic Banking
Bank Al Habib Limited - Islamic Banking
Dubai Islamic Bank Pakistan Limited
Faysal Bank Limited - Islamic Banking
Habib Bank Limited -Islamic Banking
Meezan Bank Limited

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:

TRANSFER AGENT
Meezan Bank Limited
Meezan House
C-25, Estate Avenue, SITE, Karachi.
Phone: 38103538 Fax: 36406017
Website: www.meezanbank.com

DISTRIBUTORS
Al Meezan Investment Management Limited
Meezan Bank Limited
MEEZAN ROZANA AMDANI FUND
CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES
AS AT DECEMBER 31, 2019

December 31, June 30,

2019 2019
(Unaudited) (Audited)
Note (Rupees in '000)
Assets
Balances with banks 5 26,295,735 7,673,651
Investments 6 5,572,060 8,359,401
Receivable against conversion of units 93,530 74,205
Profit receivable 251,741 160,695
Preliminary expenses and floatation costs 799 899
Deposits and prepayments 577 266
Total assets 32,214,442 16,269,117

Liabilities
Payable to Al Meezan Investment Management Limited - the Management 10 31,278 9,360
Company
Payable to Central Depository Company of Pakistan Limited - the Trustee 11 1,778 1,173
Payable to the Securities and Exchange Commission of Pakistan 12 2,565 3,418
Payable against conversion and redemption of units 72,066 96,609
Dividend payable 10,858 9,333
Accrued expenses and other liabilities 8 56,141 14,784
Total liabilities 174,686 134,677

Net assets 32,039,756 16,134,440

Contingencies and commitments 7

Unit holders' fund (as per statement attached) 32,039,756 16,134,440

-------------- (Number of units) --------------

Number of units in issue 640,795,143 322,688,791

-------------- (Rupees) --------------

Net asset value per unit 50.0000 50.0000

The annexed notes 1 to 18 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN ROZANA AMDANI FUND
CONDENSED INTERIM INCOME STATEMENT (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

For the period

For the six
from December For the quarter
months period
28, 2018 to ended December
ended December
December 31, 31, 2019
31, 2019
2018
Note------------------------------- (Rupees in '000) -------------------------------
Income
Net realised loss on sale of investment (1,265) - (437)
Profit on sukuk certificates and commercial papers 182,349 - 104,316
Profit on term deposit receipts 277,362 - 120,807
Profit on Bai Muajjal 6.4 138,033 - 67,745
Profit on saving accounts with banks 1,076,514 929 647,300
Total income 1,672,993 929 939,731

Expenses
Remuneration of Al Meezan Investment Management Limited -
the Management Company 10 37,186 46 18,795
Sindh Sales Tax on remuneration of the Management Company 4,834 6 2,443
Remuneration of Central Depository Company of Pakistan
Limited - the Trustee 11 8,335 12 4,565
Sindh Sales Tax on remuneration of the trustee 1,084 2 594
Annual fee to the Securities and Exchange Commission of Pakistan 12 2,564 6 1,404
Selling and marketing expenses 13 40,087 - 23,879
Brokerage expense 845 - 457
Auditors' remuneration 290 2 190
Fees and subscription 829 3 510
Amortization of preliminary expenses and floatation costs 101 2 51
Bank and settlement charges 683 - 237
Provision for Sindh Workers' Welfare Fund 8.1 31,523 17 17,732
Total expenses 128,361 96 70,857

Net income for the period before taxation 1,544,632 833 868,874
Taxation 15 - - -

Net income for the period after taxation 1,544,632 833 868,874

Allocation of net income for the period

Net income for the period after taxation 1,544,632 833
Income already paid on units redeemed - -
1,544,632 833

Accounting income available for distribution

- Relating to capital gains - -
- Excluding capital gains 1,544,632 833
1,544,632 833

The annexed notes 1 to 18 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN ROZANA AMDANI FUND
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

For the period

For the six
from December For the quarter
months period
28, 2018 to ended December
ended December
December 31, 31, 2019
31, 2019
2018
------------------------------- (Rupees in '000) -------------------------------

Net income for the period after taxation 1,544,632 833 868,874

Other comprehensive income for the period - - -

Total comprehensive income for the period 1,544,632 833 868,874

The annexed notes 1 to 18 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN ROZANA AMDANI FUND
CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS’ FUND (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

For the six months period ended For the period from December 28, 2018
December 31, 2019 to December 31, 2018

Undistributed Undistributed
Capital Value Total Capital Value Total
income income
---------------------- (Rupees in '000) ---------------------- ---------------------- (Rupees in '000) ----------------------

Net assets at the beginning of the period 16,134,440 - 16,134,440 - - -

Issuance of 1,073,789,840 units

(December 31, 2018: 20,649,833 units)
- Capital value (at par value) 53,689,492 - 53,689,492 1,032,492 - 1,032,492
- Element of income - - - - - -
Total proceeds on issuance of units 53,689,492 - 53,689,492 1,032,492 - 1,032,492

Redemption of 755,683,529 units - - -

(December 31, 2018: nil units)
- Capital value (at par value) 37,784,176 - 37,784,176 - - -
- Element of loss - - - - - -
Total payments on redemption of units 37,784,176 - 37,784,176 - - -

Total comprehensive income for the period - 1,544,632 1,544,632 - 833 833
Distribution during the period * - (1,544,632) (1,544,632) - (833) (833)
Net income for the period less distribution - - - - - -

Net assets at the end of the period 32,039,756 - 32,039,756 1,032,492 - 1,032,492

Undistributed income brought forward

- Realised income - -
- Unrealised income - -
- -
Accounting income available for distribution
- Relating to capital gains - -
- Excluding capital gains 1,544,632 833
1,544,632 833

Distribution during the period * (1,544,632) (833)

Undistributed income carried forward - -

Undistributed income carried forward

- Realised income - -
- Unrealised income - -
- -

(Rupees) (Rupees)

Net assets value per unit at the beginning of the period 50.0000 50.0000

Net asset value per unit at the end of the period 50.0000 50.0000

The annexed notes 1 to 18 form an integral part of these condensed interim financial statements.

* Meezan Rozana Amdani Fund is required to distribute dividend on a daily basis on each business day.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN ROZANA AMDANI FUND
CONDENSED INTERIM CASH FLOW STATEMENT (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

For the period

For the six
from December
months period
28, 2018 to
ended December
December 31,
31, 2019
2018
Note (Rupees in '000)
CASH FLOWS FROM OPERATING ACTIVITIES

Net income for the period before taxation 1,544,632 833

Adjustments for:
Preliminary expense and flotation costs 100 (1,019)
1,544,732 (186)
(Increase) in assets
Investments - net (1,862,659) -
Deposits and prepayments (311) -
Profit receivable (91,046) -
(1,954,016) -

(409,284) (186)
Increase in liabilities
Payable to Al Meezan Investment Management Limited - Management Company 21,918 94
Payable to Central Depository Company of Pakistan Limited - Trustee 605 15
Payable to Securities and Exchange Commission of Pakistan (853) 6
Accrued expenses and other liabilities 41,357 145
63,027 260

Net cash (used in) / generated from operating activities (346,257) 74

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts against issuance and conversion of units 53,670,167 1,026,799

Payments against redemption and conversion of units (37,808,719) -
Dividend paid (1,543,107) (833)
Net cash generated from financing activities 14,318,341 1,025,966

Net increase in cash and cash equivalents during the period 13,972,084 1,026,040
Cash and cash equivalents at the beginning of the period 12,323,651 -

Cash and cash equivalents at the end of the period 5.3 26,295,735 1,026,040

The annexed notes 1 to 18 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN ROZANA AMDANI FUND
NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

1. LEGAL STATUS AND NATURE OF BUSINESS

1.1 Meezan Rozana Amdani 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 29, 2018 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.
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 investment objective of the Fund is to meet liquidity needs of investors by providing investors a daily payout
through investment in Shariah Compliant money market instruments. Under the Trust Deed, all the conducts and acts
of the Fund are based on Shariah principles. The Management Company has appointed Dr. Imran Ashraf Usmani 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 Money Market Scheme and has the following specific features:

(a) Dividend will be distributed to the entitled unit holders on a daily basis.
(b) Daily dividend received by the unit holder shall be reinvested.

By distributing dividend on a daily basis, the Management Company is required to ensure that total distribution in an
accounting period accumulates to an amount that is required under the tax laws and other regulations in force.

1.4 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.

1.5 The Management Company has been assigned a quality rating of AM1 by VIS Credit Rating Company Limited dated
December 31, 2019 (2018: AM1 dated December 29, 2017) and PACRA dated December 28, 2019. The rating reflects
the Company’s experienced management team, structured investment process and sound quality of systems and
processes. The stability rating of the Fund is AA(f) given by VIS Credit Rating Company Limited.

1.6 Title to the assets of the Fund are held in the name of CDC as the Trustee of the Fund.

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 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.

3. BASIS OF PREPARATION

3.1 Statement of compliance

These condensed interim financial statements have been prepared in accordance with the accounting and reporting
standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards applicable
in Pakistan for interim financial reporting comprise of:

- International Accounting Standard (IAS) 34, Interim Financial Reporting, 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.

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
International Accounting Standard (IAS) 34, Interim Financial Reporting, 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.
 2

The disclosures made in these condensed interim financial statements have, however, been limited based on the
requirements of the International Accounting Standard 34: 'Interim Financial Reporting'. These condensed interim
financial statements do not include all the information and disclosures required in a full set of financial statements and
should be read in conjunction with the annual published audited financial statements of the Fund for the year ended
June 30, 2019.

These condensed interim financial statements are unaudited. However, a limited scope review has been performed by
the statutory auditors. In compliance with Schedule V of the NBFC Regulations, the directors of the Management
Company declare that these condensed interim financial statements give a true and fair view of the state of affairs of
the Fund as at December 31, 2019.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, JUDGEMENTS AND RISK

MANAGEMENT

4.1 The accounting policies adopted and the methods of computation of balances used in the preparation of these
condensed interim financial statements are the same as those applied in the preparation of the annual financial
statements of the Fund for the year ended June 30, 2019.

4.2 The preparation of the condensed interim financial statements in conformity with accounting and reporting standards
as applicable in Pakistan requires management to make estimates, assumptions and use judgments that affect the
application of policies and reported amounts of assets, liabilities, income and expenses. Estimates, assumptions and
judgments are continually evaluated and are based on historical experience and other factors, including reasonable
expectations of future events. Revisions to accounting estimates are recognised prospectively commencing from the
period of revision. In preparing the condensed interim financial statements, the significant judgments made by
management in applying the Fund’s accounting policies and the key sources of estimation and uncertainty were the
same as those applied to the financial statements as at and for the year ended June 30, 2019. The Fund’s financial
risk management objectives and policies are consistent with those disclosed in the annual financial statements of the
Fund for the year ended June 30, 2019.

4.3 Standards and amendments to published accounting and reporting standards that are effective in the current
period

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, 2019. However, these do not have any significant impact on the Fund's
operations and, therefore, have not been detailed in these condensed interim financial statements.

4.4 Standards, interpretations and amendments to published accounting and reporting standards that are not yet
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, 2020
- IAS 8 - 'Accounting policies, change in accounting
estimates and errors' (amendment) January 1, 2020

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 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, 2020. However, these do not have any significant
impact on the Fund's operations and, therefore, have not been detailed in these condensed interim financial
statements.

December 31, June 30,

2019 2019
(Unaudited) (Audited)
5. BALANCES WITH BANKS Note (Rupees in '000)

In saving accounts 5.1 26,295,701 7,673,626

In current accounts 34 25
26,295,735 7,673,651

5.1 The balances in saving accounts have an expected profit ranging from 3.00% to 14.45% per annum (June 30, 2019:
4.00% to 11.85% per annum)
 3

December 31, June 30,

2019 2019
(Unaudited) (Audited)
5.3 Cash And cash equivalents Note (Rupees in '000)

Balances with banks 5 26,295,735 7,673,651

Term deposit receipts
having original maturity of 3 months or less 6 - 4,650,000
26,295,735 12,323,651

6. INVESTMENTS

At fair value through profit or loss

Commercial paper 6.1 2,550,297 675,000
Corporate sukuk 6.2 600,000 1,558,584
Term deposit receipts 6.3 - 4,650,000
having original maturity of 3 months or less
Bai Muajjal receivable 6.4 2,421,763 1,475,817
5,572,060 8,359,401

6.1 Commercial papers

Sales / As a
As a
redemp- Carrying Market percentage
As at Purchases As at Unrealised percentage
tions / value as at value as at of total
Maturity July 1, during the December appreciation/ of net
Name of the security Profit rate maturity December December market
date 2019 period 31, 2019 (diminution) assets of
during the 31, 2019 31, 2019 value of
the fund
period investment
(Number of certificates) (Rupees in '000) ---- % ----

K-Electric Limited CP-1 Sukuk September 6 months Kibor plus 1,589 - 1,589 - - - - - -
(note 6.1.1) 2, 2019 base rate of 0.90%

K-Electric Limited CP-2 Sukuk February 6 months Kibor plus - 1,200 - 1,200 1,173,251 1,173,251 - 3.66% 21.06%
(note 6.1.1) 28, 2020 base rate of 1.30%

K-Electric Limited CP-3 Sukuk March 19, 6 months Kibor plus - 1,420 - 1,420 1,377,046 1,377,046 - 4.30% 24.71%
(note 6.1.1) 2020 base rate of 1.30%

Total as at December 31, 2019 2,550,297 2,550,297

Total as at June 30, 2019 1,558,584 1,558,584

6.1.1 The nominal value of these sukuk certificates is Rs 1,000,000 each.

6.1.2 The securities are valued on the basis of amortization to its face value as per the requirements of Circular 33 of 2012
with respect to thinly and non traded debt securities with residual maturity of up to six months.

6.2 Corporate sukuk

Percentage in
Sales /
Carrying Market relation to
As at Purchases redemp- As at Unrealised
value as at value as at Total
Maturity July 1, during the tions December appreciation/ Net assets
Name of the security Profit rate December December market
date 2019 period during the 31, 2019 (diminution) of the
31, 2019 31, 2019 value of
period Fund
investment
----------------- (Number of certificates) ---------------------------------- (Rupees in '000) ----------------- ---------------- % ---------------

Hub Pow er Company Limited V May 21, 3 months Kibor plus 6,000 - - 6,000 600,000 600,000 - 1.87% 10.77%
(AA+, PACRA) (note 6.2.2) 2020 base rate of 1.50%

Hub Pow er Company Limited II October 3 months Kibor plus 135,000 - 135,000 - - - - - -
(A1+, PACRA) (note 6.2.1) 2, 2019 base rate of 1.00%

Total as at December 31, 2019 600,000 600,000

Total as at June 30, 2019 675,000 675,000
 4

6.2.1 The nominal value of the sukuk certificates is Rs 5,000 each.

6.2.2 The nominal value of the sukuk certificates is Rs 100,000 each.

6.3 Term deposit receipts

Term deposit
Percentage in relation to
receipts Matured As at
Profit As at July
placed during the December Total market
Name of the bank Maturity rate 1, 2019 Net assets
during the period 31, 2019 value of
of the fund
period investment
% ---------------- (Rupees in '000) ---------------- -------------%-------------

Faysal Bank Limited September 8, 2019 12.15% 1,550,000 - 1,550,000 - - -

Askari Bank Limited September 17, 2019 12.05% 1,600,000 - 1,600,000 - - -
Meezan Bank Limited September 20, 2019 12.25% 1,500,000 - 1,500,000 - - -
Faysal Bank Limited December 6, 2019 13.53% - 2,000,000 2,000,000 - - -
Meezan Bank Limited December 2, 2019 13.50% - 1,200,000 1,200,000 - - -
Meezan Bank Limited December 20, 2019 13.50% - 1,500,000 1,500,000 - - -
Total as at Decem ber 31, 2019 4,700,000 9,350,000 -

Total as at June 30, 2019 7,290,000 2,640,000 4,650,000

6.4 Bai Muajjal receivable

The Fund entered in a Bai Muajjal Transaction with Pak Brunei Investment Company Limited on December 05, 2019,
December 11, 2019 and December 16, 2019 against K-Electric Limited Commercial Paper III (issued on September
19, 2019) at an effective interest rate of 13.15%.The final payment is agreed to be received on June 05, 2020, June
11, 2020 and June 16, 2020 respectively. The final transaction prices are Rs. 1,022.339 million, Rs.1,024.819 million,
Rs. 513.597 million respectively which include deferred profit of Rs. 63.234 million, Rs. 63.387 million and Rs. 31.767
million respectively.

7. CONTINGENCIES AND COMMITMENTS

There were no contingencies and commitments outstanding as at December 31, 2019 and June 30, 2019.

December 31, June 30,

2019 2019
(Unaudited) (Audited)
Note (Rupees in '000)
8. ACCRUED EXPENSES AND OTHER LIABILITIES

Auditors' remuneration 262 200

Brokerage payable 259 85
Shariah advisor fee payable 538 538
Withholding tax payable 13,994 4,649
Provision for Sindh Workers' Welfare Fund (SWWF) 8.1 40,822 9,299
Other payables 116 -
Zakat payable 150 13
56,141 14,784

8.1 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, is 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 has 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, the MUFAP had 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 (i.e. starting from May 21, 2015).
 5

Had the provision for SWWF not been recorded in these condensed interim financial statements of the Fund for the
period ended December 31, 2019, the dividend paid by the Fund during the period December 31, 2019 would have
been higher by Re. 0.06 per unit (June 30, 2019: 0.03 per unit).

9. TOTAL EXPENSE RATIO

The Total Expense Ratio (TER) of the Fund for the period ended December 31, 2019 is 1.00% which includes 0.31%
representing government levy, Sindh Workers' Welfare Fund and SECP fee (December 31, 2018: 0.58% which
included 0.19 % representing government levy, Sindh Workers' Welfare Fund and SECP fee).

10. PAYABLE TO AL MEEZAN INVESTMENT MANAGEMENT LIMITED - MANAGEMENT COMPANY

During the period, the Management Company has reduced charging of the remuneration from 5% to 2% of gross
earnings of the Fund subject to minimum of 0.25% and maximum of 1% of average annual net assets. The reduction
in remuneration is effective from July 22, 2019.

11. PAYABLE TO CENTRAL DEPOSITORY COMPANY OF PAKISTAN LIMITED - TRUSTEE

The Trustee is entitled to a monthly remuneration for services rendered to the Fund under the provisions of the trust
deed. During the period the trustee has revised its tariff with effect from July 1, 2019 as follows:

Previous Tariff Revised Tariff

Net Assets (Rs.) Fee (Flat Rate)
Up to Rs. 1 billion 0.15% per annum of net assets 0.065% per
From Rs. 1 billion to Rs. 10 billion Rs 1.5 million plus 0.075% per annum of net assets exceeding Rs 1 billion. annum of Net
Exceeding Rs. 10 billion Rs 8.25 million plus 0.06% per annum of net assets exceeding Rs 10 billion. Assets.

Accordingly, the Fund has charged Trustee Fee @ 0.065% per annum during the current period.

12. PAYABLE TO THE SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN (SECP)

In accordance with the NBFC Regulations, a Collective Investment Scheme (CIS) is required to pay annual fee to the
Securities and Exchange Commission of Pakistan (SECP).

Effective from July 1, 2019, the SECP vide SRO No. 685(I)/2019 dated June 28, 2019, revised the rate of annual fee
to 0.02% of net assets, applicable on all categories of CISs. Previously, the rate of annual fee applicable to money
market fund was 0.075%. Accordingly, the Fund has charged SECP Fee at the rate of 0.02% of net assets during the
current period.

13. SELLING AND MARKETING EXPENSES

Effective from July 22, 2019, the Management Company has started charging selling and marketing expenses to the
Fund. The Management Company, based on its own discretion has currently determined a capping of 0.34% 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.

14. TRANSACTIONS WITH CONNECTED PERSONS / RELATED PARTIES

Connected persons include Al Meezan Investment Management Limited being the Management Company, the Central
Depository Company of Pakistan Limited being the Trustee, Meezan Bank Limited being the holding company of the
Management Company, Directors and Executives of the Management Company, other funds under the common
management of 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 are in the normal course of business, at contracted rates and terms determined
in accordance with market rates.

Remuneration payable to the Management Company and the Trustee is determined in accordance with the provisions
of the NBFC Rules, the NBFC Regulations and the Trust Deed respectively.
 6

Details of transactions with connected persons and balances with them are as follows:

December 31, June 30,

2019 2019
(Unaudited) (Audited)
(Rupees in '000)
Al Meezan Investment Management Limited - Management Company
Remuneration payable 6,548 8,283
Sindh Sales Tax on management fee payable 851 1,077
Selling and marketing expense payable 23,879 -
Investment of 33,961,618 units (June 30, 2019:16,629,842 units) 1,698,081 835,975

Meezan Bank Limited

Bank balance 79,675 55,616
Profit receivable on saving accounts 349 364

Central Depository Company of Pakistan Limited - Trustee

Trustee fee payable 1,573 1,038
Sindh Sales Tax on trustee fee payable 205 135
Security deposit 100 100

Meezan Strategic Allocation Fund - MSAP - I

Investment of 11,563,338 units (June 30, 2019:1,486,486 units) 578,167 74,324

Meezan Strategic Allocation Fund - MSAP - II

Investment of 2,897,526 units (June 30, 2019:1,014,332 units) 144,876 50,717

Meezan Strategic Allocation Fund - MSAP - III

Investment of 4,814,674 units (June 30, 2019:1,222,400 units) 240,734 61,120

Meezan Strategic Allocation Fund - MSAP - IV

Investment of 5,121,934 units (June 30, 2019:1,378,452 units) 256,097 68,923

Meezan Strategic Allocation Fund - MSAP - V

Investment of 1,235,202 units (June 30, 2019:220,080 units) 61,760 11,004

Meezan Strategic Asset Allocation Fund - MCPP - III

Investment of 13,671,442 units (June 30, 2019:4,521,293 units) 683,572 226,065

Meezan Strategic Allocation Fund -II - MCPP - IV

Investment of 18,019,583 units (June 30, 2019:6,081,739 units) 900,979 304,087

Meezan Strategic Allocation Fund-II - MCPP - V

Investment of 4,084,263 units (June 30, 2019:2,000,572 units) 204,213 100,029

Meezan Strategic Allocation Fund II- MCPP - VI

Investment of 3,915,796 units (June 30, 2019:1,420,406 units) 195,790 71,020

Meezan Strategic Allocation Fund II- MCPP - VII

Investment of 2,061,675 units (June 30, 2019:760,217 units) 103,084 38,011

Meezan Strategic Allocation Fund II- MCPP - VIII

Investment of 1,090,559 units (June 30, 2019:460,132 units) 54,528 23,007

Meezan Strategic Allocation Fund III- MCPP - IX

Investment of 1,140,970 units (June 30, 2019: Nil units) 57,048 -

Unitholders holding 10 percent or more of the Fund

Investment of 232,497,621 units (June 30, 2019:58,295,559 units) 11,624,881 2,914,778

Directors and Executives of the Management Company

Investment of 152,484 units (June 30, 2019: 2,291,179 units) 7,624 114,559
 7

For the six For the period

months period from December
ended December 28, 2018 to
31, 2019 December 31,
2018

(Rupees in '000)
Al Meezan Investment Management Company Limited -
Management Company
Remuneration for the period 37,186 46
Sindh Sales Tax on management fee for the period 4,834 6
Selling and marketing expense 40,087 -
Units issued: 27,371,776 units (December 31, 2018: 6,007,067 units) 1,368,589 300,353
Units redeemed: 10,040,000 units (December 31, 2018: Nil units) 502,000 -
Dividend paid 73,844 313

Meezan Bank Limited

Profit on saving account 7,792 1,149
Term deposit receipt placed 2,700 -
Term deposit receipt matured 2,700 -
Profit on term deposit receipts 132,910 -

Central Depository Company of Pakistan Limited - Trustee

Remuneration fee for the period 8,335 12
Sindh Sales Tax on trustee fee for the period 1,084 2
CDS charges 438 -

Meezan Strategic Allocation Fund - MSAP - I

Units issued: 24,936,614 units 1,246,831 -
Units redeemed: 14,859,762 units 742,988 -
Dividend paid 22,059 -

Meezan Strategic Allocation Fund - MSAP - II

Units issued: 3,547,664 units 177,383 -
Units redeemed: 1,664,470 units 83,224 -
Dividend paid 7,525 -

Meezan Strategic Allocation Fund - MSAP - III

Units issued: 5,661,695 units 283,085 -
Units redeemed: 2,069,421 units 103,471 -
Dividend paid 11,434 -

Meezan Strategic Allocation Fund - MSAP - IV

Units issued: 5,765,922 units 288,296 -
Units redeemed: 2,022,440 units 101,122 -
Dividend paid 12,257 -

Meezan Strategic Allocation Fund - MSAP - V

Units issued: 1,795,924 units 89,796 -
Units redeemed: 780,802 units 39,040 -
Dividend paid 3,184 -

Meezan Strategic Asset Allocation Fund - MCPP-III

Units issued: 37,420,392 units 1,871,020 -
Units redeemed: 28,270,243 units 1,413,512 -
Dividend paid 24,530 -

Meezan Strategic Allocation Fund II- MCPP - IV

Units issued: 26,506,901 units 1,325,345 -
Units redeemed: 14,569,057 units 728,453 -
Dividend paid 49,568 -
 8

For the six For the period

months period from December
ended December 28, 2018 to
31, 2019 December 31,
2018

(Rupees in '000)
Meezan Strategic Allocation Fund II- MCPP - V
Units issued: 7,437,771 units 371,889 -
Units redeemed: 5,354,080 units 267,704 -
Dividend paid 14,525 -

Meezan Strategic Allocation Fund II- MCPP - VI

Units issued: 6,173,431 units 308,672 -
Units redeemed: 3,678,041 units 183,902 -
Dividend paid 11,996 -

Meezan Strategic Allocation Fund II- MCPP - VII

Units issued: 3,099,097 units 154,955 -
Units redeemed: 1,797,639 units 89,882 -
Dividend paid 6,488 -

Meezan Strategic Allocation Fund II- MCPP - VIII

Units issued: 4,949,235 units 247,462 -
Units issued: 4,318,808 units 215,940 -
Dividend paid 4,426 -

Meezan Strategic Allocation Fund III- MCPP - IX

Units issued: 4,173,849 units 208,692 -
Units issued: 3,032,879units 151,644 -
Dividend paid 3,787 -

Directors and Executives of the Management Company

Units issued: 126,604 units 6,330 -
Units redeemed: 2,263,247 units 113,162 -
Dividend paid 1,003 -

15. TAXATION

The Fund's income is exempt from income tax as per clause (99) of part I of the Second Schedule to the Income Tax
Ordinance, 2001 subject to the condition that not less than 90 percent of the accounting income for the year as
reduced by capital gains, whether realised or unrealised, is distributed amongst the unitholders. Furthermore, as per
regulation 63 of the NBFC Regulations, the Fund is required to distribute 90 percent of the net accounting income
other than capital gains to the unit holders. The Fund has not recorded any tax liability in respect of income relating to
the current period as the Management Company intends to distribute at least 90 percent of the Fund's accounting
income for the year ending June 30, 2020 as reduced by capital gains (whether realised or unrealised) to its
unitholders.

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.

16. FAIR VALUES OF FINANCIAL INSTRUMENTS

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.
 9

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 market price (unadjusted) in active markets for an 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).

Level 3: Inputs for the asset or liability that are not based on observable market data (i.e., unobservable inputs).

As at December 31, 2019, the Fund held the following financial instruments measured at fair values:

As at December 31, 2019

Level 1 Level 2 Level 3 Total
ASSETS --------------------------------------- (Rupees in '000) ---------------------------------------

Financial assets 'at fair value through profit or loss'

Corporate sukuks - 600,000 - 600,000
Commercial papers * - 2,550,297 - 2,550,297
Term deposit receipts - having original
maturity of 3 months or less * - - -
Bai Muajjal receivable - 2,421,763 - 2,421,763
- 5,572,060 - 5,572,060

As at June 30, 2019

Level 1 Level 2 Level 3 Total
ASSETS --------------------------------------- (Rupees in '000) ---------------------------------------

Financial assets 'at fair value through profit or loss'

Corporate sukuks - 675,000 - 675,000
Commercial papers * - 1,558,584 - 1,558,584
Term deposit receipts - having original
maturity of 3 months or less * 4,650,000 - 4,650,000
Bai Muajjal receivable - 1,475,817 - 1,475,817
- 8,359,401 - 8,359,401

* The valuation of commercial papers has been done based on amortisation of commercial paper to its fair value as per the guidelines
given in Circular 33 of 2012 since the residual maturity of this investment is less than six months and they are placed with
counterparties which have high credit rating.

17. GENERAL

17.1 Figures have been rounded off to the nearest thousand rupees.

17.2 Corresponding figures have been rearranged and reclassified, wherever necessary, for the purpose of better
presentation. No significant rearrangements or reclassifications were made in these condensed interim financial
statements during the period.

18. DATE OF AUTHORISATION

February 10, 2020
These condensed interim financial statements were authorised for issue on ______ by the Board of Directors of the
Management Company.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
 REDEFINING INVESTMENT
Meezan
Financial Planning
IN THE CITY OF LIGHTS
Fund of Funds

MEEZAN FINANCIAL PLANNING

FUND OF FUNDS (MFPF)
Meezan Financial Planning Fund of Funds invests in Shariah
compliant Fixed Income and Equity Mutual Funds in line with the
risk tolerance of the investor and in doing so, it strives to generate
EMPRESS MARKET
returns on investment aligned with respective allocation plans. (KARACHI)
 REDEFINING INVESTMENT
Meezan
Financial Planning
IN THE CITY OF LIGHTS
Fund of Funds

MEEZAN FINANCIAL PLANNING

FUND OF FUNDS (MFPF)
Meezan Financial Planning Fund of Funds invests in Shariah
compliant Fixed Income and Equity Mutual Funds in line with the
risk tolerance of the investor and in doing so, it strives to generate
EMPRESS MARKET
returns on investment aligned with respective allocation plans. (KARACHI)
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. Mohammad Shoaib, CFA Chief Executive Officer
Mr. Muhammad Abdullah Ahmed Nominee Director - MBL
Mr. Mohammad Furquan R Kidwai Independent Director
Mr. ljaz Farooq Nominee Director - MBL
Mr. Moin M. Fudda Independent Director
Ms. Saima Kamila Khan Independent Director
Mr. Arshad Majeed Nominee Director - MBL
Mr. Naeem Abdul Sattar Nominee Director - PKIC
Syed Amir Ali Zaidi Nominee Director – PKIC

CFO & COMPANY SECRETARY OF THE MANAGEMENT COMPANY

Syed Owais Wasti

AUDIT COMMITTEE
Mr. Moin M. Fudda Chairman
Mr. Arshad Majeed Member
Mr. Naeem Abdul Sattar Member

RISK MANAGEMENT COMMITTEE

Mr. Muhammad Abdullah Ahmed Chairman
Syed Amir Ali Zaidi Member
Mr. Naeem Abdul Sattar Member

HUMAN RESOURSE & REMUNERATION COMMITTEE

Mr. Moin M. Fudda Chairman
Mr. Ariful Islam Member
Mr. Naeem Abdul Sattar 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

Bank Islami Pakistan Limited
Dubai Islamic Bank Pakistan Limited
Habib Metropolitan Bank Limited - Islamic Banking
Meezan Bank Limited

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:

TRANSFER AGENT
Meezan Bank Limited
Meezan House
C-25, Estate Avenue, SITE, Karachi.
Phone: 38103538 Fax: 36406017
Website: www.meezanbank.com

DISTRIBUTORS
Al Meezan Investment Management Limited
Meezan Bank Limited
MEEZAN FINANCIAL PLANNING FUND OF FUNDS
CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES
AS AT DECEMBER 31, 2019

-------------------------------------------------- (Unaudited) --------------------------------------------------

As at December 31, 2019

Aggressive Moderate Conservative MAAP-I Total

--------------------------------------------------------------------------
Note (Rupees in '000) --------------------------------------------------------------------------
Assets

Balances with banks 5 6,632 7,379 3,594 22,506 40,111

Investments 6 325,766 151,479 169,290 314,878 961,413
Receivable against conversion of units 70 6 83 - 159
Receivable against sale of investments 13,463 8,631 8,069 - 30,163
Profit receivable on saving accounts with banks 58 69 32 221 380
Total assets 345,989 167,564 181,068 337,605 1,032,226

Liabilities

Payable to Al Meezan Investment Management

Limited - Management Company 35 24 34 48 141
Payable to Central Depository Company of
Pakistan Limited - Trustee 8 26 10 20 10 66
Payable to Meezan Bank Limited 5 4 2 - 11
Payable to Securities and Exchange
Commission of Pakistan 9 32 15 18 43 108
Payable on redemption and conversion of units 546 10,421 1,720 - 12,687
Payable against purchase of investments 13,463 8,631 8,069 - 30,163
Accrued expenses and other liabilities 10 5,223 3,479 2,332 11,243 22,277
Total liabilities 19,330 22,584 12,195 11,344 65,453

Net assets 326,659 144,980 168,873 326,261 966,773

Contingencies and commitments 7

Unit holders’ fund (as per statement attached) 326,659 144,980 168,873 326,261 966,773

---------------------------------------------------------------------- (Number of units) ------------------------------------------------------------

Number of units in issue 4,810,086 2,370,070 2,818,804 6,494,004

--------------------------------------------------------------------- (Rupees) -------------------------------------------------------------------

Net asset value per unit 67.9113 61.1710 59.9095 50.2403

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN FINANCIAL PLANNING FUND OF FUNDS
CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES
AS AT DECEMBER 31, 2019

------------------------------------------------------------------------ (Audited) ------------------------------------------------------------------------

As at July 24,
As at June 30, 2019
2018
Aggressive Moderate Conservative MAAP-I Total MAAP-IV
--------------------------------------------------------------------------
Note (Rupees in '000) --------------------------------------------------------------------------
Assets

Balances with banks 5 5,765 4,366 4,861 725 15,717 4,045

Investments 6 364,165 202,298 219,360 603,752 1,389,575 -
Receivable against conversion of units 6 - 56 - 62 -
Receivable against sale of investments - - - - - 473,018
Profit receivable on saving accounts with banks 29 34 17 4 84 196
Total assets 369,965 206,698 224,294 604,481 1,405,438 477,259

Liabilities

Payable to Al Meezan Investment Management

Limited - Management Company 60 26 21 52 159 111
Payable to Central Depository Company of
Pakistan Limited - Trustee 8 38 18 27 44 127 33
Payable to Meezan Bank Limited 1 - - - 1 -
Payable to Securities and Exchange
Commission of Pakistan 9 440 232 237 701 1,610 630
Payable on redemption and conversion of units 192 338 314 - 844 -
Payable against purchase of investments - - - - - -
Accrued expenses and other liabilities 10 4,162 3,045 1,917 10,974 20,098 5,438
Total liabilities 4,893 3,659 2,516 11,771 22,839 6,212

Net assets 365,072 203,039 221,778 592,710 1,382,599 471,047

Contingencies and commitments 7

Unit holders’ fund (as per statement attached) 365,072 203,039 221,778 592,710 1,382,599 471,047

---------------------------------------------------------------------- (Number of units) --------------------------------------------------------------------

Number of units in issue 6,273,536 3,762,017 4,061,839 12,414,152 10,199,830

--------------------------------------------------------------------- (Rupees) --------------------------------------------------------------------

Net asset value per unit 58.1924 53.9707 54.6004 47.7447 46.1818

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN FINANCIAL PLANNING FUND OF FUNDS
CONDENSED INTERIM INCOME STATEMENT (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

Six months period ended December 31, 2019

Aggressive Moderate Conservative MAAP-I Total

---------------------------------------------------------------------------
Note (Rupees in '000) ----------------------------------------------------------------------------

Income
Net realised gain / (loss) on sale of investments 3,331 1,715 2,904 (12,559) (4,609)
Dividend income - - - - -
Back end load income - - - - -
Profit on saving accounts with banks 286 219 185 946 1,636
3,617 1,934 3,089 (11,613) (2,973)
Unrealised appreciation on re-measurement
of investments at 'fair value through
profit or loss' 6.1 44,270 16,466 13,527 19,605 93,868
Total income 47,887 18,400 16,616 7,992 90,895

Expenses
Remuneration to Al Meezan Investment
Management Limited - Management Company 28 23 19 71 141
Sindh Sales Tax on management fee 4 3 2 9 18
Allocated expenses 12 166 75 93 214 548
Remuneration to Central Depository Company
of Pakistan Limited - Trustee 8 116 53 65 150 384
Sindh Sales Tax on trustee fee 15 7 8 19 49
Annual fee to Securities and Exchange
Commission of Pakistan 9 33 15 19 43 110
Auditors' remuneration 98 44 55 124 321
Fees and subscription 48 23 27 64 162
Bank and settlement charges 4 3 2 1 10
Provision for Sindh Workers' Welfare Fund 948 363 327 146 1,784
Printing charges - - - - -
Total expenses 1,460 609 617 841 3,527

Net income for the period before taxation 46,427 17,791 15,999 7,151 87,368

Taxation 14 - - - - -

Net income for the period after taxation 46,427 17,791 15,999 7,151 87,368

Allocation of net income for the period

Net income for the period after taxation 46,427 17,791 15,999 7,151 87,368
Income already paid on units redeemed (881) (1,152) (1,095) - (3,128)
45,546 16,639 14,904 7,151 84,240

Accounting income available for distribution

- Relating to capital gains 47,601 18,181 16,431 7,046 89,259
- Excluding capital gains (2,055) (1,542) (1,527) 105 (5,019)
45,546 16,639 14,904 7,151 84,240

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN FINANCIAL PLANNING FUND OF FUNDS
CONDENSED INTERIM INCOME STATEMENT (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

For the period

from July 01,
Six months period ended December 31, 2018
2018 to July
24, 2018
Aggressive Moderate Conservative MAAP-I Total MAAP-IV
---------------------------------------------------------------------------
Note (Rupees in '000) ----------------------------------------------------------------------------

Income
Net realised loss on sale of investments (1,617) (2,505) (1,924) (1,849) (7,895) (11,515)
Dividend income 4,629 5,576 7,946 5,465 23,616 3,569
Back end load income - - - 128 128 167
Profit on saving accounts with banks 97 63 87 48 295 152
3,109 3,134 6,109 3,792 16,144 (7,627)
Unrealised diminution on re-measurement
of investments at 'fair value through
profit or loss' 6.1 (45,941) (15,999) (7,877) (75,162) (144,979) -
Total loss (42,832) (12,865) (1,768) (71,370) (128,835) (7,627)

Expenses
Remuneration to Al Meezan Investment
Management Limited - Management Company 40 22 36 31 129 69
Sindh Sales Tax on management fee 5 3 5 4 17 9
Allocated expenses 12 245 132 134 402 913 32
Remuneration to Central Depository Company
of Pakistan Limited - Trustee 8 217 117 118 356 808 27
Sindh Sales Tax on trustee fee 28 15 15 46 104 4
Annual fee to Securities and Exchange
Commission of Pakistan 9 233 125 127 382 867 30
Auditors' remuneration 96 53 53 158 360 9
Fees and subscription 42 23 23 70 158 4
Bank and settlement charges 5 3 4 2 14 -
Provision for Sindh Workers' Welfare Fund
Printing charges 36 19 19 59 133 3
Total expenses 947 512 534 1,510 3,503 187

Net loss for the period before taxation (43,779) (13,377) (2,302) (72,880) (132,338) (7,814)

Taxation 14 - - - - - -

Net loss for the period after taxation (43,779) (13,377) (2,302) (72,880) (132,338) (7,814)

Allocation of net income for the period

Net income for the period after taxation - - - - - -
Income already paid on units redeemed - - - - - -
- - - - - -

Accounting income available for distribution

- Relating to capital gains - - - - - -
- Excluding capital gains - - - - - -
- - - - - -

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN FINANCIAL PLANNING FUND OF FUNDS
CONDENSED INTERIM INCOME STATEMENT (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

Quarter ended December 31, 2019

Aggressive Moderate Conservative MAAP-I Total
---------------------------------------------------------------------------
Note (Rupees in '000) ----------------------------------------------------------------------------
Income
Net realised gain on sale of investments 3,240 2,035 2,637 2,252 10,164
Back end load income - - - - -
Profit on saving accounts with banks 194 139 101 734 1,168
Reversal of provision of Sindh Workers' Welfare Fund - - - - -
3,434 2,174 2,738 2,986 11,332
Unrealised appreciation on re-measurement of investments at
'fair value ' through profit or loss' 59,414 19,394 13,226 33,717 125,751
Total income 62,848 21,568 15,964 36,703 137,083

Expenses
Remuneration to Al Meezan Investment Management Limited -
Management Company 16 13 10 49 88
Sindh Sales Tax on management fee 2 2 1 6 11
Allocated expenses 12 81 37 44 86 248
Remuneration to Central Depository Company of Pakistan
Limited - Trustee 8 57 26 31 60 174
Sindh Sales Tax on trustee fee 7 4 4 7 22
Annual fee to Securities and Exchange Commission of Pakistan 9 16 7 9 17 49
Auditors' remuneration 52 24 29 55 160
Fees and subscription 22 10 11 24 67
Bank and settlement charges 3 3 2 1 9
Provision for Sindh Workers' Welfare Fund 948 363 317 146 1,774
Printing charges - - - - -
Total expenses 1,204 489 458 451 2,602

Net income for the quarter before taxation 61,644 21,079 15,506 36,252 134,481

Taxation 14 - - - - -

Net income for the quarter after taxation 61,644 21,079 15,506 36,252 134,481

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN FINANCIAL PLANNING FUND OF FUNDS
CONDENSED INTERIM INCOME STATEMENT (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

Quarter ended December 31, 2018

Aggressive Moderate Conservative MAAP-I Total
---------------------------------------------------------------------------
Note (Rupees in '000) ----------------------------------------------------------------------------
Income
Net realised loss on sale of investments (1,240) (798) (1,450) (1,018) (4,506)
Back end load income - - - 65 65
Profit on saving accounts with banks 58 30 44 36 168
Reversal of provision of Sindh Workers' Welfare Fund - - 14 - 14
(1,182) (768) (1,392) (917) (4,259)
Unrealised diminution on re-measurement of investments at
'fair value ' through profit or loss' (32,313) (9,343) (1,358) (52,693) (95,707)
Total loss (33,495) (10,111) (2,750) (53,610) (99,966)

Expenses
Remuneration to Al Meezan Investment Management Limited -
Management Company 15 11 16 19 61
Sindh Sales Tax on management fee 2 2 2 2 8
Allocated expenses 12 119 64 64 195 442
Remuneration to Central Depository Company of Pakistan
Limited - Trustee 8 107 57 56 175 395
Sindh Sales Tax on trustee fee 14 7 7 22 50
Annual fee to Securities and Exchange Commission of Pakistan 9 114 60 60 185 419
Auditors' remuneration 51 29 28 84 192
Fees and subscription 18 10 9 31 68
Bank and settlement charges 1 - 2 - 3
Provision for Sindh Workers' Welfare Fund
Printing charges 19 9 10 32 70
Total expenses 460 249 254 745 1,708

Net loss for the quarter before taxation (33,955) (10,360) (3,004) (54,355) (101,674)

Taxation 14 - - - - -

Net loss for the quarter after taxation (33,955) (10,360) (3,004) (54,355) (101,674)

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN FINANCIAL PLANNING FUND OF FUNDS
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

Six months period ended December 31, 2019

Aggressive Moderate Conservative MAAP-I Total
--------------------------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------------------------

Net income for the period after taxation 46,427 17,791 15,999 7,151 87,368

Other comprehensive income for the period - - - - -

Total comprehensive income for the period 46,427 17,791 15,999 7,151 87,368

For the period

from July 01,
Six months period ended December 31, 2018
2018 to July 24,
2018
Aggressive Moderate Conservative MAAP-I Total MAAP-IV
--------------------------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------------------------

Net loss for the period after taxation (43,779) (13,377) (2,302) (72,880) (132,338) (7,814)

Other comprehensive income for the period - - - - - -

Total comprehensive loss for the period (43,779) (13,377) (2,302) (72,880) (132,338) (7,814)

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN FINANCIAL PLANNING FUND OF FUNDS
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

Quarter ended December 31, 2019

Aggressive Moderate Conservative MAAP-I Total
--------------------------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------------------------

Net income for the period after taxation 61,644 21,079 15,506 36,252 134,481

Other comprehensive income for the period - - - - -

Total comprehensive income for the period 61,644 21,079 15,506 36,252 134,481

Quarter ended December 31, 2018

Aggressive Moderate Conservative MAAP-I Total
--------------------------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------------------------

Net loss for the period after taxation (33,955) (10,360) (3,004) (54,355) (101,674)

Other comprehensive income for the period - - - - -

Total comprehensive loss for the period (33,955) (10,360) (3,004) (54,355) (101,674)

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN FINANCIAL PLANNING FUND OF FUNDS
CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS’ FUNDS (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019
Six months period ended December Six months period ended December Six months period ended December Six months period ended December Six months period ended December 31,
31, 2019 31, 2019 31, 2019 31, 2019 2019
Aggressive Moderate Conservative MAAP-I Total
---------------- (Rupees in '000) -------------------------------- (Rupees in '000) -------------------------------- (Rupees in '000) -------------------------------- (Rupees in '000) -------------------------------- (Rupees in '000) ----------------
Capital Undistributed Capital Undistributed Capital Undistributed Capital Undistributed Undistributed
Total Total Total Total Capital Value Total
Value income Value income Value income Value income income

Net assets at the beginning of the period 347,237 17,835 365,072 166,989 36,050 203,039 178,157 43,621 221,778 537,356 55,354 592,710 1,229,739 152,860 1,382,599
Issuance of units:
Aggressive: 771,658 units / Moderate: 322,759 units /
Conservative: 634,740 units
- Capital value (at net asset value per unit at the beginning of the period) 44,905 44,905 17,420 17,420 34,657 34,657 - - 96,982 - 96,982
- Element of (loss) / income 1,575 1,575 726 726 1,124 1,124 - - 3,425 - 3,425
Total proceeds on issuance of units 46,480 - 46,480 18,146 - 18,146 35,781 - 35,781 - - - 100,407 - 100,407
Redemption of units:
Aggressive: 2,235,108 units / Moderate: 1,714,706 units /
Conservative: 1,877,775 units / MAAP I: 5,920,148 units /
- Capital value (at net asset value per unit at the beginning of the period) 130,066 130,066 92,544 92,544 102,527 102,527 282,656 282,656 607,793 - 607,793
- Element of (income) / loss 373 881 1,254 300 1,152 1,452 1,063 1,095 2,158 (9,056) (9,056) (7,320) 3,128 (4,192)
Total payments on redemption of units 130,439 881 131,320 92,844 1,152 93,996 103,590 1,095 104,685 273,600 - 273,600 600,473 3,128 603,601
Total comprehensive income for the period 46,427 46,427 17,791 17,791 15,999 15,999 7,151 7,151 - 87,368 87,368
Distribution during the period - - - - - - - - - - -
Net income for the period less distribution - 46,427 46,427 - 17,791 17,791 - 15,999 15,999 - 7,151 7,151 - 87,368 87,368
Net assets at the end of the period 263,278 63,381 326,659 92,291 52,689 144,980 110,348 58,525 168,873 263,756 62,505 326,261 729,673 237,100 966,773

Undistributed income brought forward

- Realised income 101,711 67,539 62,595 196,400 428,245
- Unrealised loss (83,876) (31,489) (18,974) (141,046) (275,385)
17,835 36,050 43,621 55,354 152,860
Accounting income available for distribution
- Relating to capital gains 47,601 18,181 16,431 7,046 89,259
- Excluding capital gains (2,055) (1,542) (1,527) 105 (5,019)
45,546 16,639 14,904 7,151 84,240
Net loss for the period after taxation - - - - -
Distribution during the period - - - - -
Undistributed income carried forward 63,381 52,689 58,525 62,505 237,100

Undistributed income carried forward

- Realised income 19,111 36,223 44,998 42,900 143,232
- Unrealised gain 44,270 16,466 13,527 19,605 93,868
63,381 52,689 58,525 62,505 237,100

Rupees Rupees Rupees Rupees

Net asset value per unit as at the beginning of the period 58.1924 53.9707 54.6004 47.7447
Net asset value per unit as at the end of the period 67.9113 61.1710 59.9095 50.2403

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.
For Al-Meezan Investment Management Limited
(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN FINANCIAL PLANNING FUND OF FUNDS
CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS’ FUNDS (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019
Six months period ended December Six months period ended December Six months period ended December Six months period ended December Six months period ended December 31, For the period from July 01, 2018 to
31, 2018 31, 2018 31, 2018 31, 2018 2018 July 24, 2018
Aggressive Moderate Conservative MAAP-I Total MAAP-IV
---------------- (Rupees in '000) -------------------------------- (Rupees in '000) -------------------------------- (Rupees in '000) -------------------------------- (Rupees in '000) ---------------- ---------------- (Rupees in '000) ---------------- ---------------- (Rupees in '000) ----------------

Capital Undistribut Capital Undistribut Capital Undistribut Capital Undistribut Undistribut Capital Undistribut
Total Total Total Total Capital Value Total Total
Value ed income Value ed income Value ed income Value ed income ed income Value ed income

Net assets at the beginning of the period 394,890 101,897 496,787 226,557 82,538 309,095 209,956 80,512 290,468 630,891 198,023 828,914 1,462,294 462,970 1,925,264 531,432 (23,695) 507,737

Issuance of units:
Aggressive: 1,067,535 units / Moderate: 474,284 units /
Conservative: 1,171,936 units / MAAP I: nil units
- Capital value (at net asset value per unit at the beginning of the period) 75,032 - 75,032 31,840 - 31,840 76,491 - 76,491 - - - 183,363 - 183,363 - - -
- Element of (loss) / income (1,470) - (1,470) (411) - (411) 268 - 268 - - - (1,613) - (1,613) - - -
Total proceeds on issuance of units 73,562 - 73,562 31,429 - 31,429 76,759 - 76,759 - - - 181,750 - 181,750 - - -

Redemption of units:
Aggressive: 1,096,597 units / Moderate: 1,348,501 units /
Conservative: 1,921,552 units / MAAP I: 736,000 units /
MAAP IV: 626,419 units
- Capital value (at net asset value per unit at the beginning of the period) 77,074 - 77,074 90,528 - 90,528 125,417 - 125,417 43,131 - 43,131 336,150 - 336,150 29,378 - 29,378
- Element of (income) / loss (1,530) - (1,530) (2,028) - (2,028) 23 - 23 (1,694) - (1,694) (5,229) - (5,229) (502) - (502)
Total payments on redemption of units 75,544 75,544 88,500 88,500 125,440 125,440 41,437 41,437 330,921 330,921 28,876 28,876

Total comprehensive loss for the period - (43,779) (43,779) - (13,377) (13,377) - (2,302) (2,302) - (72,880) (72,880) - (132,338) (132,338) - (7,814) (7,814)
Distribution during the period - - - - - - - - - - - - - - - - - -
Net loss for the period less distribution - (43,779) (43,779) - (13,377) (13,377) - (2,302) (2,302) - (72,880) (72,880) - (132,338) (132,338) - (7,814) (7,814)

Net assets at the end of the period 392,908 58,118 451,026 169,486 69,161 238,647 161,275 78,210 239,485 589,454 125,143 714,597 1,313,123 330,632 1,643,755 502,556 (31,509) 471,047

Undistributed income / (accumulated loss) brought forward

- Realised income 163,797 100,834 83,187 207,736 555,554 25,150
- Unrealised loss (61,900) (18,296) (2,675) (9,713) (92,584) (48,845)
101,897 82,538 80,512 198,023 462,970 (23,695)
Accounting income available for distribution
- Relating to capital gains - - - - - -
- Excluding capital gains - - - - - -
- - - - - -
Net loss for the period after taxation (43,779) (13,377) (2,302) (72,880) (132,338) (7,814)
Distribution during the period - - - - - -
Undistributed income / (accumulated loss) carried forward 58,118 69,161 78,210 125,143 330,632 (31,509)

Undistributed income / (accumulated loss) carried forward

- Realised income / (loss) 104,059 85,160 86,087 200,305 475,611 (31,509)
- Unrealised loss (45,941) (15,999) (7,877) (75,162) (144,979) -
58,118 69,161 78,210 125,143 330,632 (31,509)

Rupees Rupees Rupees Rupees Rupees

Net asset value per unit as at the beginning of the period 70.2849 67.1319 65.2685 58.6014 46.8987
Net asset value per unit as at the end of the period 64.0742 63.9793 64.7127 53.2925 46.1818

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al-Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN FINANCIAL PLANNING FUND OF FUNDS
CONDENSED INTERIM CASH FLOW STATEMENT (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

Six months period ended December 31, 2019

Aggressive Moderate Conservative MAAP-I Total

----------------------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES

Net income for the period before taxation 46,427 17,791 15,999 7,151 87,368

Adjustments for
Net unrealised appreciation on re-measurement
of investments 'at fair value through profit or loss' (44,270) (16,466) (13,527) (19,605) (93,868)
2,157 1,325 2,472 (12,454) (6,500)
Decrease in assets
Investments - net 82,669 67,285 63,597 308,479 522,030
Receivable against sale of investments (13,463) (8,631) (8,069) - (30,163)
Profit receivable on saving accounts with banks (29) (35) (15) (217) (296)
69,177 58,619 55,513 308,262 491,571
Increase / (decrease) in liabilities
Payable to Al Meezan Investment Management
Limited - Management Company (25) (2) 13 (4) (18)
Payable to Central Depository Company of
Pakistan Limited - Trustee (12) (8) (7) (34) (61)
Payable to Meezan Bank Limited 4 4 2 - 10
Payable to Securities and Exchange
Commission of Pakistan (408) (217) (219) (658) (1,502)
Payable against purchase of investments 13,463 8,631 8,069 - 30,163
Accrued expenses and other liabilities 1,061 434 415 269 2,179
14,083 8,842 8,273 (427) 30,771
Net cash generated from operating activities 85,417 68,786 66,258 295,381 515,842

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts against issuance and conversion of units 46,416 18,140 35,754 - 100,310
Payments against redemption and conversion of units (130,966) (83,913) (103,279) (273,600) (591,758)
Net cash used in financing activities (84,550) (65,773) (67,525) (273,600) (491,448)

Net increase / (decrease) in cash and cash

equivalents during the period 867 3,013 (1,267) 21,781 24,394
Cash and cash equivalents at the beginning of the period 5,765 4,366 4,861 725 15,717

Cash and cash equivalents at the end of the period 6,632 7,379 3,594 22,506 40,111

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN FINANCIAL PLANNING FUND OF FUNDS
CONDENSED INTERIM CASH FLOW STATEMENT (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

For the period

from July 01,
Six months period ended December 31, 2018
2018 to July
24, 2018
Aggressive Moderate Conservative MAAP-I Total MAAP-IV
----------------------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES

Net loss for the period before taxation (43,779) (13,377) (2,302) (72,880) (132,338) (7,814)

Adjustments for
Net unrealised diminution on re-measurement
of investments 'at fair value through profit or loss' 45,941 15,999 7,877 75,162 144,979 -
2,162 2,622 5,575 2,282 12,641 (7,814)
Decrease in assets
Investments - net 6,988 55,930 37,678 44,234 144,830 510,146
Receivable against sale of investments - - - (560) (560) (468,018)
Profit receivable on saving accounts with banks (11) (2) 1 (16) (28) (147)
6,977 55,928 37,679 43,658 144,242 41,981
Increase / (decrease) in liabilities
Payable to Al Meezan Investment Management
Limited - Management Company 4 (38) (22) (2) (58) 66
Payable to Central Depository Company of
Pakistan Limited - Trustee - (4) (2) (2) (8) (10)
Payable to Meezan Bank Limited - (15) (1) - (16) -
Payable to Securities and Exchange
Commission of Pakistan (285) (199) (189) (500) (1,173) 30
Payable against purchase of investments - - - - - -
Accrued expenses and other liabilities 55 30 56 201 342 (32)
(226) (226) (158) (303) (913) 54
Net cash generated from operating activities 8,913 58,324 43,096 45,637 155,970 34,221

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts against issuance and conversion of units 73,394 30,942 76,259 - 180,595 -
Payments against redemption and conversion of units (75,423) (88,331) (123,412) (41,437) (328,603) (33,108)
Net cash used in financing activities (2,029) (57,389) (47,153) (41,437) (148,008) (33,108)

Net increase / (decrease) in cash and cash

equivalents during the period 6,884 935 (4,057) 4,200 7,962 1,113
Cash and cash equivalents at the beginning of the period 3,899 2,965 9,841 5,204 21,909 2,932

Cash and cash equivalents at the end of the period 10,783 3,900 5,784 9,404 29,871 4,045

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN FINANCIAL PLANNING FUND OF FUNDS
NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

1. LEGAL STATUS AND NATURE OF BUSINESS

1.1 Meezan Financial Planning Fund of Funds (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 July 27, 2012 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). The Fund is registered as a Notified entity under the Non-Banking Finance Companies and Notified
Entities Regulations, 2008 (the NBFC Regulations) issued through S.R.O.1203(I)/2008 on November 21, 2008. The
Management Company has been licensed by the 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, Shahrah-e-Faisal, Karachi, 74400, Pakistan.

1.2 The Fund has been formed to enable the unitholders 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 guidelines. 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 Fund of Funds Scheme listed on the Pakistan Stock Exchange Limited. Units
are offered for public subscription on a continuous basis except for Meezan Asset Allocation Plan-I (MAAP-I) in which the
offer of units is discontinued after the end of the subscription period. However, the subscription in units may be reopened
for fresh issuance by the Management Company with prior approval of the Commission after intimation to the Trustee and
by providing notice to investors in order to protect the interest of the unitholders. The units of the plan are transferable and
can be redeemed by surrendering them to the Fund.

1.4 Title to the assets of the Fund are held in the name of CDC as the Trustee of the Fund. The Fund's property of different
types of allocation plans is accounted for and maintained separately in the books of accounts, which shall collectively
constitute the Fund's property of the Scheme.

1.5 The Management Company has been assigned a quality rating of AM1 by VIS Credit Rating Company Limited dated
December 31, 2019 (2018: AM1 dated December 28, 2018) and by PACRA dated December 28, 2019. The rating reflects
the Company’s experienced management team, structured investment process and sound quality of systems and

1.6 The Fund is an open-end Shariah compliant Fund of Funds Scheme that aims to generate returns on investment as per
allocation plans (sub funds) namely Aggressive Allocation Plan, Moderate Allocation Plan, Conservative Allocation Plan
and Meezan Asset Allocation Plan - I by investing in Shariah compliant income, money market and equity mutual funds in
line with the risk tolerance of the investor. Investors of the Fund may hold different types of allocation plans and may invest
in any one or more of the available allocation plans. The management may also invest in other Collective Investments
Schemes available to it with prior approval of SECP. A brief description of the plans are as follows:

Aggressive Allocation Plan (Aggressive) High risk - Long term investor

This plan invests at least 65 percent of its net assets in Shariah Compliant Equity
Funds and at least 25 percent in Shariah Compliant Fixed Income Funds.
Moderate Allocation Plan Moderate risk - Medium and long term investor
(Moderate) This plan invests at least 45 percent of its net assets in Shariah Compliant Equity
Funds and at least 45 percent in Shariah Compliant Fixed Income Funds.
Conservative Allocation Plan Low risk - Medium and short term investor
(Conservative) This plan invests at least 20 percent of its net assets in Shariah Compliant Equity
Fundsand at least 70 percent in Shariah Compliant Fixed Income Funds.
Meezan Asset Allocation Plan I (MAAP-I) Low risk - High return through asset allocation
The allocation plan can invest its portfolio between the Equity asset classes / schemes
and Fixed Income or Money Market asset classes / schemes based on the
macroeconomic view and outlook of such asset classes up to 100 percent. The initial
maturity of this plan is two years from the close of the subscription period (i.e. October
20, 2015). Units shall be subject to front end load. An early exit fee shall also be
charged in case of redemption before the completion of the initial maturity of the plan.
During the year ended June 30, 2018, Meezan Asset Allocation Plan-I (MAAP-I) was
reopened for investment, after completion of two years. The plan had a revised
maturity date of two years from the close of the re-subscription period (i.e. November
24, 2017). During the current period, the SECP approved the extension of the plan by
one year vide its letter No. SCD / AMCW / MFPFeF / 137 / 2019 dated November 13,
2019.

Each allocation plan announces separate Net Asset Value which ranks Pari Passu according to the number of units of the
respective allocation plans. The books and records of each plan have been maintained separately.
 2

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 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.

3 BASIS OF PREPARATION

3.1 STATEMENT OF COMPLIANCE

These condensed interim 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 for comprise of:

- International Accounting Standard (IAS) 34, Interim Financial Reporting, 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.

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 with the
requirements of IAS 34, 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.

The disclosures made in these condensed interim financial statements have, however, been limited based on the
requirements of the International Accounting Standard 34: 'Interim Financial Reporting'. These condensed interim
financial statements do not include all the information and disclosures required in a full set of financial statements and
should be read in conjunction with the annual published audited financial statements of the Fund for the year ended June
30, 2019.

These condensed interim financial statements are unaudited. However, a limited scope review has been performed by the
statutory auditors. In compliance with Schedule V of the NBFC Regulations, the directors of the Management Company
declare that these condensed interim financial statements give a true and fair view of the state of affairs of the Fund as at
December 31, 2019.

4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, JUDGMENTS AND RISK

MANAGEMENT

4.1 The accounting policies adopted and the methods of computation of balances used in the preparation of these condensed
interim financial statements are the same as those applied in the preparation of the annual financial statements of the
Fund for the year ended June 30, 2019.

4.2 The preparation of the condensed interim financial statements in conformity with approved accounting standards as
applicable in Pakistan requires management to make estimates, assumptions and use judgments that affect the
application of policies and reported amounts of assets, liabilities, income and expenses. Estimates, assumptions and
judgments are continually evaluated and are based on historical experience and other factors, including reasonable
expectations of future events. Revisions to accounting estimates are recognised prospectively commencing from the
period of revision. In preparing the condensed interim financial statements, the significant judgments made by
management in applying the Fund’s accounting policies and the key sources of estimation and uncertainty were the same
as those applied to the financial statements as at and for the year ended June 30, 2019. The Fund’s financial risk
management objectives and policies are consistent with those disclosed in the annual financial statements for the year
ended June 30, 2019.

4.3 Amendments to published accounting and reporting standards that are effective in the current period

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, 2019. However, these do not have any significant impact on the Fund's
operations and, therefore, have not been detailed in these condensed interim financial statements.
 3

4.4 Standards, interpretations and amendments to published accounting and reporting standards that are not yet
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, 2020
- IAS 8 - 'Accounting policies, change in accounting
estimates and errors' (amendment) January 1, 2020

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 new standards, interpretations and amendments to the accounting and reporting standards that are
mandatory for the Fund's annual accounting period beginning on or after July 1, 2020. However, these do not have any
significant impact on the Fund's operations and, therefore, have not been detailed in these condensed interim financial
statements.

5 BALANCES WITH BANKS

-------------------------------------------------- (Unaudited) --------------------------------------------------

As at December 31, 2019

Note Aggressive Moderate Conservative MAAP-I Total

------------------------------------------------------------------------------- (Rupees in '000) --------------------------------------------------------------------------

Saving accounts 5.1 6,205 7,369 3,584 22,496 39,654

Current accounts 427 10 10 10 457
6,632 7,379 3,594 22,506 40,111

------------------------------------------------------------------------ (Audited) ------------------------------------------------------------------------

As at July 24,
As at June 30, 2019
2018
Note Aggressive Moderate Conservative MAAP-I Total MAAP-IV
------------------------------------------------------------------------------- (Rupees in '000) -------------------------------------------------------------------------------

Saving accounts 5.1 5,338 4,356 4,851 715 15,260 3,964

Current accounts 427 10 10 10 457 81
5,765 4,366 4,861 725 15,717 4,045

5.1 The balance in savings accounts have an expected profit ranging from 2.50% to 12.75% (June 30, 2019: 3.32% to
12.30%) per annum.

6 INVESTMENTS
-------------------------------------------------- (Unaudited) --------------------------------------------------

As at December 31, 2019

Note Aggressive Moderate Conservative MAAP-I Total

------------------------------------------------------------------------------- (Rupees in '000) --------------------------------------------------------------------------

Investments - 'at fair value through profit or loss' 6.1 325,766 151,479 169,290 314,878 961,413

------------------------------------------------------------------------ (Audited) ------------------------------------------------------------------------

As at July 24,
As at June 30, 2019
2018
Aggressive Moderate Conservative MAAP-I Total MAAP-IV
-------------------------------------------------------------------------------
Note (Rupees in '000) -------------------------------------------------------------------------------

Investments - 'at fair value through profit or loss' 6.1 364,165 202,298 219,360 603,752 1,389,575 -
 4

6.1 At fair value through profit or loss - Units of mutual funds

Percentage in
Unrealisedrelation to
Carrying Market
(diminution)/ Market
Purchases Sales As at Total
As at July 1, value as at value as at appreciation value on
Name of investee funds during the during December market
2019 December December as at the basis
period the period 31, 2019 value of
31, 2019 31, 2019 December of Net
invest-
31, 2019 Assets of
ments
the Fund
----------------------- (Number of units) -------------------
------------------------- (Rupees in '000) -------------------------(Percentage)
Aggressive Allocation Plan
Meezan Islamic Fund 5,706,434 214,233 1,680,778 4,239,889 203,546 244,324 40,778 74.79 75.00
Meezan Islamic Income Fund 882,014 1,148,732 537,885 1,492,861 77,950 81,442 3,492 24.93 25.00
Meezan Cash Fund 898,802 - 898,802 - - - - - -
281,496 325,766 44,270 99.72 100.00
Moderate Allocation Plan
Meezan Islamic Fund 2,116,314 81,501 883,468 1,314,347 62,788 75,740 12,952 52.24 50.00
Meezan Islamic Income Fund 981,320 896,893 489,880 1,388,333 72,225 75,739 3,514 52.24 50.00
Meezan Cash Fund 999,999 - 999,999 - - - - - -
135,013 151,479 16,466 104.48 100.00
Conservative Allocation Plan
Meezan Islamic Fund 1,149,027 81,177 495,756 734,448 35,023 42,322 7,299 25.06 25.00
Meezan Islamic Income Fund 1,598,388 1,535,519 806,534 2,327,373 120,740 126,968 6,228 75.19 75.00
Meezan Cash Fund 1,628,812 - 1,628,812 - - - - - -
155,763 169,290 13,527 100.25 100.00
Meezan Asset Allocation Plan I
Al Meezan Mutual Fund 39,791 2,473,754 1,088,228 1,425,317 20,715 22,971 2,256 7.04 7.30
Meezan Islamic Fund 171,373 710,176 477,102 404,447 22,400 23,306 906 7.14 7.40
Meezan Islamic Income Fund - 3,782,009 3,782,009 - - - - - -
Meezan Cash Fund 8,448 3,820,833 3,829,281 - - - - - -
Meezan Sovereign Fund 3,775,282 5,108,777 5,315,716 3,568,343 190,174 194,814 4,640 59.71 61.87
Meezan Dedicated Equity Fund 11,269,149 426,698 9,950,478 1,745,369 61,984 73,787 11,803 22.62 23.43
295,273 314,878 19,605 96.51 100.00
Total investments in units of
mutual funds
Al Meezan Mutual Fund 39,791 2,473,754 1,088,228 1,425,317 20,715 22,971 2,256 2.38 2.39
Meezan Islamic Fund 9,143,148 1,087,087 3,537,104 6,693,131 323,757 385,692 61,935 39.89 40.12
Meezan Islamic Income Fund 3,461,722 7,363,153 5,616,308 5,208,567 270,915 284,149 13,234 29.39 29.56
Meezan Cash Fund 3,536,061 3,820,833 7,356,894 - - - - 0 -
Meezan Sovereign Fund 3,775,282 5,108,777 5,315,716 3,568,343 190,174 194,814 4,640 20.15 20.26
Meezan Dedicated Equity Fund 11,269,149 426,698 9,950,478 1,745,369 61,984 73,787 11,803 7.63 7.67
867,545 961,413 93,868 99.44 100.00

7 CONTINGENCIES AND COMMITMENTS

There were no contingencies and commitments outstanding as at December 31, 2019 and June 30, 2019.

8 PAYABLE TO CENTRAL DEPOSITORY COMPANY OF PAKISTAN LIMITED - TRUSTEE

The Trustee is entitled to monthly remuneration for services rendered to the Fund under the provisions of the Trust Deed.
During the period, the Trustee has revised its tariff as follows:

Previous Tariff Revised Tariff

Net Assets (Rs.) Fee
Upto 1 Billion 0.10% of Net Assets
0.070% per annum of Net Assets
Rs. 1 Million plus 0.075% per annum
Above 1 Billion of Net Assets exceeding Rs. 1 Billion

Accordingly, the Fund has charged Trustee fee at the rate of 0.070% per annum, effective from July 1st, 2019.
 5

9 PAYABLE TO THE SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN - SECP

In accordance with the NBFC Regulations, a Collective Investment Scheme (CIS) is required to pay annual fee to the
Securities and Exchange Commission of Pakistan (SECP).

Effective from July 1, 2019, the SECP vide SRO No. 685(I)/2019 dated June 28, 2019, revised the rate of annual fee to
0.02% of net assets, applicable on all categories of CISs. Previously, the rate of annual fee applicable to fund of funds was
0.095%. Accordingly, the Fund has charged SECP Fee at the rate of 0.02% of net assets during the current period.

10 ACCRUED EXPENSES AND OTHER LIABILITIES

-------------------------------------------------- (Unaudited) --------------------------------------------------

As at December 31, 2019

Note Aggressive Moderate Conservative MAAP-I Total

------------------------------------------------------------------------------- (Rupees in '000) --------------------------------------------------------------------------

Withholding tax payable 123 478 49 409 1,059

Provision for Sindh Workers' Welfare Fund 10.1 4,328 2,279 1,541 7,032 15,180
Provision for Federal Excise Duty and
related Sindh Sales Tax on sales load 10.2 368 497 528 3,295 4,688
Provision for Federal Excise Duty and
related Sindh Sales Tax on management fee 10.2 72 40 36 16 164
Shariah advisor fee payable 46 20 23 58 147
Auditors' remuneration payable 195 94 106 275 670
Printing charges payable 91 71 49 158 369
5,223 3,479 2,332 11,243 22,277

------------------------------------------------------------------------ (Audited) ------------------------------------------------------------------------

As at July 24,
As at June 30, 2019
2018
Aggressive Moderate Conservative MAAP-I Total MAAP-IV
-------------------------------------------------------------------------------
Note (Rupees in '000) -------------------------------------------------------------------------------

Withholding tax payable 115 458 14 409 996 8

Provision for Sindh Workers' Welfare Fund ### 3,380 1,916 1,214 6,886 13,396 2,621
Provision for Federal Excise Duty and
related Sindh Sales Tax on sales load ### 368 497 528 16 1,409 5
Provision for Federal Excise Duty and
related Sindh Sales Tax on management fee ### 72 40 36 3,295 3,443 2,662
Shariah advisor fee payable 41 21 22 63 147 27
Auditors' remuneration payable 96 50 51 151 348 80
Printing charges payable 90 63 52 154 359 35
4,162 3,045 1,917 10,974 20,098 5,438

10.1 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 on a prudent basis 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 condensed interim financial statements, the NAV per unit would
have been higher by Re 0.90, 0.96, 0.55 and 1.08 for Aggressive Allocation Plan, Moderate Allocation Plan, Conservative
Allocation Plan and MAAP-I (June 30, 2019 by 0.54, 0.51, 0.30 and 0.55 for Aggressive Allocation Plan, Moderate
Allocation Plan, Conservative Allocation Plan and MAAP-I) respectively.
 6

10.2 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 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.

With effect from July 1, 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 0.44 million, Rs 0.537 million, Rs 0.564 million
and Rs 3.31 million in Aggressive Allocation Plan, Moderate Allocation Plan, Conservative Allocation Plan and MAAP- I
respectively is being retained in the condensed interim financial statements of the Fund as the matter is pending before
the Supreme Court of Pakistan. Had the provision not been made, the Net Asset Value of the Fund as at December 31,
2019 would have been higher by Re. 0.09, Re 0.23, Re. 0.20 and Re. 0.51 per unit in Aggressive Allocation Plan,
Moderate Allocation Plan, Conservative Allocation Plan and MAAP- I (June 30, 2019: Re 0.07, Re 0.14, Re 0.14, Re 0.27
and Re 0.48 per unit) respectively.

11 TRANSACTIONS WITH CONNECTED PERSONS / RELATED PARTIES

Connected persons include Al Meezan Investment Management Limited being the Management Company, the Central
Depository Company of Pakistan Limited being the Trustee, Meezan Bank Limited being the holding company of the
Management Company, Directors and Executives of the Management Company, other funds under the common
management of 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 are in the normal course of business, at contracted rates and terms
determined in accordance with market rates.

Remuneration payable to the Management Company and the Trustee is determined in accordance with the provisions of
the NBFC Rules, NBFC Regulations and the Trust Deed respectively.

Detail of transactions with connected persons and balances with them are as follows:

------------------------------------------------------------------------------- (Unaudited) -----------------------------------------------------------------------------

Balances ------------------------------------------------ As at December 31, 2019 ------------------------------------------------
Aggressive Moderate Conservative MAAP-I Total
Al Meezan Investment Management Limited -
Management Company
Remuneration Payable (Rs in '000) 6 4 3 19 32
Sindh Sales Tax on management fee payable (Rs in '000) 1 1 1 2 5
Sales load payable (Rs in '000) 14 6 1 - 21
Sindh Sales Tax on sales load payable (Rs in '000) 1 - - - 1
Allocated expenses payable (Rs in '000) 13 13 29 27 82
Investment (Rs in '000) - - 7,513 - 7,513
Investment (Units) - - 125,407 - 125,407

Meezan Bank Limited

Bank balance (Rs in '000) 6,391 7,156 3,395 22,390 39,332
Profit receivable (Rs in '000) 59 60 31 222 372
Sales load payable (Rs in '000) 5 4 2 - 11

Central Depository Company of Pakistan

Limited - Trustee
Trustee Fee payable (Rs in '000) 22 8 18 9 57
Sindh Sales Tax on trustee fee payable (Rs in '000) 4 2 2 1 9
 7

------------------------------------------------------------------------------- (Unaudited) -----------------------------------------------------------------------------

------------------------------------------------ As at December 31, 2019 ------------------------------------------------
Aggressive Moderate Conservative MAAP-I Total
Directors and Executives of the Management Company
Investment (Rs in '000) - - - - -
Investment (Units) - - - - -

Meezan Islamic Fund

Investment (Rs in '000) 244,324 75,740 42,322 23,306 385,692
Investment (Units) 4,239,889 1,314,347 734,448 404,447 6,693,131

Meezan Sovereign Fund

Investment (Rs in '000) - - - 194,814 194,814
Investment (Units) - - - 3,568,343 3,568,343

Al Meezan Mutual Fund

Investment (Rs in '000) - - - 22,971 22,971
Investment (Units) - - - 1,425,317 1,425,317

Meezan Cash Fund

Investment (Rs in '000) - - - - -
Investment (Units) - - - - -

Meezan Islamic Income Fund

Investment (Rs in '000) 81,442 75,739 126,968 - 284,149
Investment (Units) 1,492,861 1,388,333 2,327,373 - 5,208,567

Meezan Dedicated Equity Fund

Investment (Rs in '000) - - - 73,787 73,787
Investment (Units) - - - 1,745,369 1,745,369

Unit Holders holding 10% or more units of the Fund

Investment (Rs in '000) 171,205 - 52,341 162,361 385,907
Investment (Units) 2,521,012 - 873,669 3,231,695 6,626,376

------------------------------------------------------------------------------- (Audited) -------------------------------------------------------------------------------

As at July 24,
------------------------------------------------ As at June 30, 2019 ------------------------------------------------
2018
Aggressive Moderate Conservative MAAP-I Total MAAP-IV
Al Meezan Investment Management
Limited - Management Company
Remuneration Payable (Rs in '000) 5 3 2 2 12 69
Sindh Sales Tax on management fee
payable (Rs in '000) 1 - - - 1 10
Sales load payable (Rs in '000) 19 5 1 - 25 -
Sindh Sales Tax on sales load payable (Rs in '000) 2 1 - - 3 -
Allocated expenses payable (Rs in '000) 33 17 18 50 118 32
Investment (Rs in '000) - - 6,847 - 6,847 -
Investment (Units) - - 125,406 - 125,406 -

Meezan Bank Limited

Bank balance (Rs in '000) 5,530 4,148 4,666 612 14,956 4,045
Profit receivable (Rs in '000) 19 12 12 4 47 196
Sales load payable (Rs in '000) 1 - - - 1 -

Central Depository Company of Pakistan

Limited - Trustee
Trustee Fee payable (Rs in '000) 33 15 24 36 108 28
Sindh Sales Tax on trustee fee payable (Rs in '000) 5 3 3 8 19 5

Directors and Executives of the

Management Company
Investment (Rs in '000) 106 0 1,621 - 1,727 -
Investment (Units) 1,818 3 29,687 - 31,508 -
 8

------------------------------------------------------------------------------- (Audited) -------------------------------------------------------------------------------

As at July 24,
------------------------------------------------ As at June 30, 2019 ------------------------------------------------
2018
Aggressive Moderate Conservative MAAP-I Total MAAP-IV
Meezan Islamic Fund
Investment (Rs in '000) 273,509 101,436 55,073 8,214 438,232 -
Investment (Units) 5,706,434 2,116,314 1,149,027 171,373 9,143,148 -

Meezan Sovereign Fund

Investment (Rs in '000) - - - 194,373 194,373 -
Investment (Units) - - - 3,775,282 3,775,282 -

Al Meezan Mutual Fund

Investment (Rs in '000) - - - 531 531 -
Investment (Units) - - - 39,791 39,791 -

Meezan Cash Fund

Investment (Rs in '000) 45,328 50,431 82,143 426 178,328 -
Investment (Units) 898,802 999,999 1,628,812 8,448 3,536,061 -

Meezan Islamic Income Fund

Investment (Rs in '000) 45,328 50,431 82,144 - 177,903 -
Investment (Units) 882,014 981,320 1,598,388 - 3,461,722 -

Meezan Dedicated Equity Fund

Investment (Rs in '000) - - - 400,208 400,208 -
Investment (Units) - - - 11,269,149 11,269,149 -

Unit Holders holding 10% or more units of

the Fund
Investment (Rs in '000) 184,302 49,515 47,703 278,205 559,725 192,410
Investment (Units) 3,167,104 917,442 873,669 5,826,939 10,785,154 4,166,358

------------------------------------------------------------------------------- (Unaudited) -----------------------------------------------------------------------------

Transactions during the period For the period ended December 31, 2019
Aggressive Moderate Conservative MAAP-I Total
Al Meezan Investment Management Limited -
Management Company
Remuneration for the period (Rs in '000) 28 23 19 71 141
Sindh Sales Tax on management fee (Rs in '000) 4 3 2 9 18
Allocated expense (Rs in '000) 166 75 93 214 548

Meezan Bank Limited

Profit on saving account (Rs in '000) 279 214 180 945 1,618

Central Depository Company of Pakistan

Limited - Trustee
Trustee fee for the period (Rs in '000) 116 53 65 150 384
Sindh Sales Tax on trustee fee (Rs in '000) 15 7 8 19 49

Directors and Executives of the Management Company

Invested during the period (Rs. in '000) 27,281 3,642 27,651 - 58,574
Invested during the period (Units) 453,202 65,869 483,459 - 1,002,530
Redeemed during the period (Rs. in '000) 27,840 3,566 24,859 - 56,265
Redeemed during the period (Units) 452,788 64,730 438,717 - 956,235

Meezan Islamic Fund

Invested during the period (Rs. in '000) 10,519 3,657 3,643 39,000 56,819
Invested during the period (Units) 214,233 81,501 81,177 710,176 1,087,087
Redeemed during the period (Rs. in '000) 82,463 43,131 24,694 24,170 174,458
Redeemed during the period (Units) 1,680,778 883,468 495,756 477,102 3,537,104
 9

------------------------------------------------------------------------------- (Unaudited) -----------------------------------------------------------------------------

For the period ended December 31, 2019
Aggressive Moderate Conservative MAAP-I Total
Meezan Sovereign Fund
Invested during the period (Rs. in '000) - - - 272,149 272,149
Invested during the period (Units) - - - 5,108,777 5,108,777
Redeemed during the period (Rs. in '000) - - - 277,610 277,610
Redeemed during the period (Units) - - - 5,315,716 5,315,716

Meezan Cash Fund

Invested during the period (Rs. in '000) - - - 196,312 196,312
Invested during the period (Units) - - - 3,820,833 3,820,833
Redeemed during the period (Rs. in '000) 45,839 50,914 83,034 199,399 379,186
Redeemed during the period (Units) 898,802 999,999 1,628,812 3,829,281 7,356,894

Al Meezan Mutual Fund

Invested during the period (Rs. in '000) - - - 36,000 36,000
Invested during the period (Units) - - - 2,473,754 2,473,754
Redeemed during the period (Rs. in '000) - - - 16,000 16,000
Redeemed during the period (Units) - - - 1,088,228 1,088,228

Meezan Islamic Income Fund

Invested during the period (Rs. in '000) 60,427 47,044 80,228 194,650 382,349
Invested during the period (Units) 1,148,732 896,893 1,535,519 3,782,009 7,363,153
Redeemed during the period (Rs. in '000) 28,644 25,657 42,643 197,912 294,856
Redeemed during the period (Units) 537,885 489,880 806,534 3,782,009 5,616,308

Meezan Dedicated Equity Fund

Invested during the period (Rs. in '000) - - - 15,048 15,048
Invested during the period (Units) - - - 426,698 426,698
Redeemed during the period (Rs. in '000) - - - 333,733 333,733
Redeemed during the period (Units) - - - 9,950,478 9,950,478

------------------------------------------------------------------------------- (Unaudited) -------------------------------------------------------------------------------

For the period
from July 1,
For the period ended December 31, 2018
2018 to July
24, 2018
Aggressive Moderate Conservative MAAP-I Total MAAP IV
------------------------------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------------------
Al Meezan Investment Management
Limited - Management Company
Remuneration for the period (Rs in '000) 40 22 36 31 129 69
Sindh Sales Tax on management fee (Rs in '000) 5 3 5 4 17 9
Allocated expense (Rs in '000) 245 132 134 402 913 32

Meezan Bank Limited

Profit on saving account (Rs in '000) 88 56 80 45 269 152

Central Depository Company of Pakistan

Limited - Trustee
Trustee fee for the period (Rs in '000) 217 117 118 356 808 27
Sindh Sales Tax on trustee fee (Rs in '000) 28 15 15 46 104 4

Directors and Executives of the

Management Company
Invested during the period (Rs. in '000) - 70 8 - 78 -
Invested during the period (Units) 1 1,063 116 - 1,180 -
Redeemed during the period (Rs. in '000) 11 69 8 - 87 -
Redeemed during the period (Units) 155 1,062 116 - 1,334 -
 10

------------------------------------------------------------------------------- (Unaudited) -------------------------------------------------------------------------------

For the period
from July 1,
For the period ended December 31, 2018
2018 to July
24, 2018
Aggressive Moderate Conservative MAAP-I Total MAAP IV
------------------------------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------------------
Investment (Units)
Invested during the period (Rs. in '000) 29,730 11,768 13,344 - 54,842 -
Invested during the period (Units) 495,544 204,757 227,282 - 927,583 -
Redeemed during the period (Rs. in '000) 22,500 30,500 16,550 - 69,550 249,454
Redeemed during the period (Units) 376,529 506,703 274,400 - 1,157,632 3,990,160

Investment (Units)
Invested during the period (Rs. in '000) - - - - - -
Invested during the period (Units) - - - 9 9 -
Dividend received during the period (Rs. in '000) - - - - - -
Dividend received during the period (Units) - - - 4 4 -
Refund of capital during the period (Rs. in '000) - - - - - -
Refund of capital during the period (Units) - - - 5 5 -

Meezan Cash Fund

Invested during the period (Rs. in '000) 5,061 3,187 12,805 1,223 22,276 372,084
Invested during the period (Units) 99,756 63,204 251,200 24,238 438,398 7,368,899
Redeemed during the period (Rs. in '000) 11,088 20,104 28,646 27,840 87,678 421,491
Redeemed during the period (Units) 214,809 393,693 558,850 540,004 1,707,356 8,331,559
Dividend received during the period (Rs. in '000) 2,304 2,766 3,957 855 9,882 1,833
Dividend received during the period (Units) 45,686 54,852 78,471 16,949 195,959 36,347
Refund of capital during the period (Rs. in '000) 257 421 410 368 1,455 251
Refund of capital during the period (Units) 5,096 8,352 8,121 7,289 28,858 4,978

Al Meezan Mutual Fund

Redeemed during the period (Rs. in '000) - - - - - 21,964
Redeemed during the period (Units) - - - - - 1,304,322

Meezan Islamic Income Fund

Invested during the period (Rs. in '000) 5,299 3,172 12,785 37,613 58,869 3,280
Invested during the period (Units) 102,478 61,736 246,147 730,485 1,140,846 63,875
Redeemed during the period (Rs. in '000) 11,393 20,164 28,723 30,750 91,030 80,267
Redeemed during the period (Units) 216,559 387,350 549,956 581,864 1,735,729 1,558,092
Dividend received during the period (Rs. in '000) 2,325 2,809 3,989 4,610 13,734 1,736
Dividend received during the period (Units) 45,244 54,664 77,620 89,709 267,237 33,786
Refund of capital during the period (Rs. in '000) 224 363 358 3,003 3,948 1,544
Refund of capital during the period (Units) 4,359 7,072 6,960 58,438 76,829 30,048

Meezan Dedicated Equity Fund

Invested during the period (Rs. in '000) - - - 26,000 26,000 -
Invested during the period (Units) - - - 602,460 602,460 -
Redeemed during the period (Rs. in '000) - - - 45,260 45,260 99,023
Redeemed during the period (Units) - - - 971,806 971,806 2,136,720

12 ALLOCATED EXPENSES

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).

Until June 19, 2019 there was a maximum cap of 0.1% of the average annual net assets of the scheme or actual
whichever is less, for allocation of such expense to the Fund. However, the SECP vide its SRO 639 dated June 20, 2019
removed the maximum cap of 0.1%.

The management company based on its own discretion has currently fixed a maximum capping of 0.1% of the average
annual net assets of the scheme for allocation of such expenses to the Fund.
 11

13 TOTAL EXPENSE RATIO

As at December 31, 2019

Aggressive Moderate Conservative MAAP I

Total Expense Ratio (TER) 0.88% 0.81% 0.66% 0.39%

Government levy, Sindh Workers' Welfare Fund and SECP fee 0.60% 0.51% 0.38% 0.10%

As at June 30, 2019

Aggressive Moderate Conservative MAAP I

Total Expense Ratio (TER) 0.38% 0.38% 0.39% 0.37%

Government levy and SECP fee 0.11% 0.11% 0.11% 0.11%

14 TAXATION

The Fund's income is exempt from income tax as per clause (99) of part I of the Second Schedule to the Income Tax
Ordinance, 2001 subject to the condition that not less than 90 percent of the accounting income for the year as reduced
by capital gains, whether realised or unrealised, is distributed amongst the unit holders. Furthermore, as per regulation 63
of the NBFC Regulations, the Fund is required to distribute 90 percent of the net accounting income other than capital
gains to the unit holders. The Fund has not recorded any tax liability in respect of income relating to the current period as
the Management Company intends to distribute at least 90 percent of the Fund's accounting income for the year ending
June 30, 2020 as reduced by capital gains (whether realised or unrealised) to its unit holders.

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.

15 FAIR VALUE OF FINANCIAL INSTRUMENTS

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 tradeable in an open market are revalued at 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.

15.1 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: Fair value measurements using quoted price (unadjusted) in an active market for identical assets or
liabilities.

- Level 2: Fair value measurements using inputs other than quoted prices included within level 1 that are observable
for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

- Level 3: Fair value measurement using inputs for the asset or liability that are not based on observable market data
(i.e. unobservable inputs).

As at December 31, 2019 and June 30, 2019, the Fund held the following financial instruments measured at fair value:

---------------------- (Unaudited) ---------------------

As at December 31, 2019
Level 1 Level 2 Level 3 Total
ASSETS ---------------------- (Rupees in '000) ---------------------

Financial assets 'at fair value through profit or loss'

Units of mutual fund 961,413 - - 961,413
 12

---------------------- (Audited) ---------------------

As at June 30, 2019
Level 1 Level 2 Level 3 Total
ASSETS ---------------------- (Rupees in '000) ---------------------

Financial assets 'at fair value through profit or loss'

Units of mutual fund 1,389,575 - - 1,389,575

16 GENERAL

16.1 Figures have been rounded off to the nearest thousand rupees.

16.2 Corresponding figures have been reclassified and rearranged in these condensed interim financial statements, wherever
necessary, for the purpose of better presentation. No significant rearrangements or reclassifications were made in these
condensed interim financial statements

17 DATE OF AUTHORISATION
February 10, 2020
These condensed interim financial statements were authorised for issue on _______________ by the Board of Directors
of the Management Company.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
 Meezan
Strategic Allocation Fund

MEEZAN STRATEGIC
ALLOCATION FUND (MSAF)
Meezan Strategic Allocation Fund is a Shariah compliant
scheme which will use active asset allocation strategy for
GUMTI WATER providing competitive returns on your investment. It is a
FOUNTAIN unique asset allocation fund for investors who wish to
(FAISALABAD)
benefit from the equity market and want an actively
managed investment portfolio with diversification.

UNFOLDING
OPPORTUNITIES OF PROGRESS
IN THE CITY OF TEXTILE

Kotwali Road Branch, Faisalabad

Susan Road Branch, Faisalabad
 Meezan
Strategic Allocation Fund

MEEZAN STRATEGIC
ALLOCATION FUND (MSAF)
Meezan Strategic Allocation Fund is a Shariah compliant
scheme which will use active asset allocation strategy for
GUMTI WATER providing competitive returns on your investment. It is a
FOUNTAIN unique asset allocation fund for investors who wish to
(FAISALABAD)
benefit from the equity market and want an actively
managed investment portfolio with diversification.

UNFOLDING
OPPORTUNITIES OF PROGRESS
IN THE CITY OF TEXTILE

Kotwali Road Branch, Faisalabad

Susan Road Branch, Faisalabad
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. Mohammad Shoaib, CFA Chief Executive Officer
Mr. Muhammad Abdullah Ahmed Nominee Director - MBL
Mr. Mohammad Furquan R Kidwai Independent Director
Mr. ljaz Farooq Nominee Director - MBL
Mr. Moin M. Fudda Independent Director
Ms. Saima Kamila Khan Independent Director
Mr. Arshad Majeed Nominee Director - MBL
Mr. Naeem Abdul Sattar Nominee Director - PKIC
Syed Amir Ali Zaidi Nominee Director – PKIC

CFO & COMPANY SECRETARY OF THE MANAGEMENT COMPANY

Syed Owais Wasti

AUDIT COMMITTEE
Mr. Moin M. Fudda Chairman
Mr. Arshad Majeed Member
Mr. Naeem Abdul Sattar Member

RISK MANAGEMENT COMMITTEE

Mr. Muhammad Abdullah Ahmed Chairman
Syed Amir Ali Zaidi Member
Mr. Naeem Abdul Sattar Member

HUMAN RESOURSE & REMUNERATION COMMITTEE

Mr. Moin M. Fudda Chairman
Mr. Ariful Islam Member
Mr. Naeem Abdul Sattar 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

Bank Al Habib Limited - Islamic Banking
Habib Metropolitan Bank Limited - Islamic Banking
Meezan Bank Limited

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:

TRANSFER AGENT
Meezan Bank Limited
Meezan House
C-25, Estate Avenue, SITE, Karachi.
Phone: 38103538 Fax: 36406017
Website: www.meezanbank.com

DISTRIBUTORS
Al Meezan Investment Management Limited
Meezan Bank Limited
Standard Chartered Bank (Pakistan) Limited
MEEZAN STRATEGIC ALLOCATION FUND
CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES
AS AT DECEMBER 31, 2019

December 31, 2019 (Unaudited)

Note MSAP-I MSAP-II MSAP-III MSAP-IV MSAP-V MCPP-III Total
------------------------------------------------ (Rupees in '000) -------------------------------------------------------
Assets
Balances with banks 5 5,606 522 583 1,022 3,758 7,946 19,437
Investments 6 933,101 549,731 879,211 971,823 235,681 837,800 4,407,347
Receivable against sale of investments 130 - - - - - 130
Other receivables 67 18 8 36 31 65 225
Total assets 938,904 550,271 879,802 972,881 239,470 845,811 4,427,139

Liabilities
Payable to Al Meezan Investment Management
Limited - Management Company 85 47 74 83 23 79 391
Payable to Central Depository Company of
Pakistan Limited - Trustee 7 62 36 58 64 16 56 292
Payable to Securities and Exchange
Commission of Pakistan 8 97 56 84 91 25 97 450
Payable against purchase of investments 765 159 265 333 68 751 2,341
Payable against redemption and conversion
of units 3,407 67 50 2,121 - 26 5,671
Accrued expenses and other liabilities 10 5,969 1,618 2,573 2,832 637 2,301 15,930
Total liabilities 10,385 1,983 3,104 5,524 769 3,310 25,075

Net assets 928,519 548,288 876,698 967,357 238,701 842,501 4,402,064

Contingencies and commitments 9

Unit holders’ fund (as per statement attached) 928,519 548,288 876,698 967,357 238,701 842,501 4,402,064

------------------------------------------- (Number of units) -------------------------------------------

Number of units in issue 23,589,488 13,130,069 21,582,953 23,415,629 5,067,073 15,305,876

------------------------------------------- (Rupees) -------------------------------------------

Net asset value per unit 39.3616 41.7582 40.6199 41.3124 47.1083 55.0443

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN STRATEGIC ALLOCATION FUND
CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES
AS AT DECEMBER 31, 2019

June 30, 2019 (Audited)

Note MSAP-I MSAP-II MSAP-III MSAP-IV MSAP-V MCPP-III Total
------------------------------------------------ (Rupees in '000) -------------------------------------------------------
Assets
Balances with banks 5 11,970 4,377 13,180 335 13,450 1,148 44,460
Investments 6 1,063,694 725,020 879,495 1,008,046 303,088 1,102,961 5,082,304
Receivable against sale of investments - - - - - - -
Other receivables 54 11 13 11 11 9 109
Total assets 1,075,718 729,408 892,688 1,008,392 316,549 1,104,118 5,126,873

Liabilities
Payable to Al Meezan Investment Management
Limited - Management Company 104 66 80 91 33 94 468
Payable to Central Depository Company of
Pakistan Limited - Trustee 7 84 55 68 76 24 84 391
Payable to Securities and Exchange
Commission of Pakistan 8 1,491 1,032 1,164 1,292 414 1,224 6,617
Payable against purchase of investments - - - - - - -
Payable against redemption and conversion
of units 1,819 265 50 3,765 - 2,965 8,864
Accrued expenses and other liabilities 10 4,737 192 195 394 82 857 6,456
Total liabilities 8,235 1,610 1,557 5,618 553 5,224 22,796

Net assets 1,067,483 727,798 891,131 1,002,774 315,996 1,098,894 5,104,077

Contingencies and commitments 9

Unit holders’ fund (as per statement attached) 1,067,483 727,798 891,131 1,002,774 315,996 1,098,894 5,104,077

------------------------------------------- (Number of units) -------------------------------------------

Number of units in issue 29,262,088 20,213,719 25,406,240 28,125,336 7,747,051 21,462,301

------------------------------------------- (Rupees) -------------------------------------------

Net asset value per unit 36.4801 36.0051 35.0753 35.6538 40.7893 51.2011

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN STRATEGIC ALLOCATION FUND
CONDENSED INTERIM INCOME STATEMENT (UNAUDITED)
FOR THE PERIOD ENDED DECEMBER 31, 2019

Six months period ended December 31, 2019

Note MSAP-I MSAP-II MSAP-III MSAP-IV MSAP-V MCPP-III Total
------------------------------------------------ (Rupees in '000) -------------------------------------------------------
Income
Net realised (loss) / gain on sale of investments (17,876) (3,960) 572 1,511 (3,855) 14,255 (9,353)
Profit on saving accounts with banks 357 179 208 296 213 492 1,745
Dividend income 22,292 7,584 11,531 12,361 3,209 24,806 81,783
Other income - - - - - 3,185 3,185
4,773 3,803 12,311 14,168 (433) 42,738 77,360
Net unrealised appreciation on
re-measurement of investments - 'at fair
value through profit or loss' 6.1 57,960 68,475 107,095 117,122 29,050 22,994 402,696
Total income 62,733 72,278 119,406 131,290 28,617 65,732 480,056

Expenses
Remuneration of Al Meezan Investment
Management Limited - Management Company 34 24 21 12 39 32 162
Sindh Sales Tax on remuneration to
Management Company 4 2 3 2 5 4 20
Allocated expenses 12 472 274 409 447 123 472 2,197
Remuneration of Central Depository Company
of Pakistan Limited - Trustee 7 331 192 286 313 86 331 1,539
Sindh Sales Tax on trustee fee 43 25 37 41 11 43 200
Annual fee to Securities and Exchange
Commission of Pakistan 8 97 56 84 91 25 97 450
Auditors' remuneration 94 56 81 88 24 81 424
Fees and subscription 35 21 29 32 10 35 162
Printing charges - - - - - - -
Provision for Sindh Workers' Welfare
Fund (SWWF) 10.1 1,232 1,432 2,369 2,605 566 1,292 9,496
Bank and settlement charges 6 6 - 1 25 38
Total expenses 2,348 2,088 3,319 3,631 890 2,412 14,688

Net income for the period before taxation 60,385 70,190 116,087 127,659 27,727 63,320 465,368

Taxation 14 - - - - - - -

Net income for the period after taxation 60,385 70,190 116,087 127,659 27,727 63,320 465,368

Allocation of net income for the period

Net income for the period after taxation 60,385 70,190 116,087 127,659 27,727 63,320 465,368
Income already paid on units redeemed - - - - - (4,497) (4,497)
60,385 70,190 116,087 127,659 27,727 58,823 460,871

Accounting income available for distribution

- Relating to capital gains 40,084 64,515 107,667 118,633 25,195 37,249 393,343
- Excluding capital gains 20,301 5,675 8,420 9,026 2,532 21,574 67,528
60,385 70,190 116,087 127,659 27,727 58,823 460,871

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN STRATEGIC ALLOCATION FUND
CONDENSED INTERIM INCOME STATEMENT (UNAUDITED)
FOR THE PERIOD ENDED DECEMBER 31, 2019

Six months period ended December 31, 2018

Note MSAP-I MSAP-II MSAP-III MSAP-IV MSAP-V MCPP-III Total
------------------------------------------------ (Rupees in '000) -------------------------------------------------------
Income
Net realised loss on sale of investments (38,799) (4,539) (6,447) (10,677) (2,578) (19,428) (82,468)
Profit on saving accounts with banks 106 166 71 101 66 31 541
Dividend income 13,001 9,425 10,866 13,046 3,675 16,480 66,493
Other income - - - - 337 1,072 1,409
(25,692) 5,052 4,490 2,470 1,500 (1,845) (14,025)
Net unrealised (diminution) / appreciation on
re-measurement of investments - 'at fair
value through profit or loss' 6.1 (125,939) (106,044) (115,534) (124,458) (41,005) 10,554 (502,426)
Total (loss) / income (151,631) (100,992) (111,044) (121,988) (39,505) 8,709 (516,451)

Expenses
Remuneration of Al Meezan Investment
Management Limited - Management Company 56 50 27 45 28 15 221
Sindh Sales Tax on remuneration to 7 7 4 6 4 2 30
Management Company
Allocated expenses 12 919 617 678 756 247 680 3,897
Remuneration of Central Depository Company
of Pakistan Limited - Trustee 7 719 483 530 591 194 532 3,049
Sindh Sales Tax on trustee fee 93 63 69 77 25 69 396
Annual fee to Securities and Exchange
Commission of Pakistan 8 873 586 644 718 235 646 3,702
Auditors' remuneration 80 54 57 64 21 56 332
Fees and subscription 39 25 28 32 11 29 164
Printing charges 47 32 35 39 13 35 201
Provision for Sindh Workers' Welfare
Fund (SWWF) 10.1 - - - - - 133 133
Bank and settlement charges 11 2 20 6 1 - 40
Total expenses 2,844 1,919 2,092 2,334 779 2,197 12,165

Net (loss) / income for the period before taxation (154,475) (102,911) (113,136) (124,322) (40,284) 6,512 (528,616)

Taxation 14 - - - - - - -

Net (loss) / income for the period after taxation (154,475) (102,911) (113,136) (124,322) (40,284) 6,512 (528,616)

Allocation of net income for the period

Net income for the period after taxation - - - - - 6,512 6,512
Income already paid on units redeemed - - - - - (335) (335)
- - - - - 6,177 6,177

Accounting income available for distribution

- Relating to capital gains - - - - - - -
- Excluding capital gains - - - - - 6,177 6,177
- - - - - 6,177 6,177

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN STRATEGIC ALLOCATION FUND
CONDENSED INTERIM INCOME STATEMENT (UNAUDITED)
FOR THE QUARTER ENDED DECEMBER 31, 2019

For the quarter ended December 31, 2019

Note MSAP-I MSAP-II MSAP-III MSAP-IV MSAP-V MCPP-III Total
------------------------------------------------ (Rupees in '000) -------------------------------------------------------
Income
Net realised gain on sale of investments 4,281 2,264 1,176 4,219 98 15,636 27,674
Profit on saving accounts with banks 133 73 37 199 114 336 892
Dividend income 16,688 4,887 7,550 8,103 2,033 17,742 57,003
Other income - - - - - 2,011 2,011
21,102 7,224 8,763 12,521 2,245 35,725 87,580
Net unrealised appreciation on
re-measurement of investments - 'at fair
value through profit or loss' 6.1 88,335 90,922 142,014 155,236 39,508 13,989 530,004
Total income 109,437 98,146 150,777 167,757 41,753 49,714 617,584

Expenses
Remuneration of Al Meezan Investment
Management Limited - Management Company 12 9 1 4 11 15 52
Sindh Sales Tax on remuneration to
Management Company 1 - - 1 1 2 5
Allocated expenses 12 233 134 208 229 58 212 1,074
Remuneration to Central Depository Company of
Pakistan Limited - Trustee 7 163 94 145 160 40 149 751
Sindh Sales Tax on trustee fee 21 12 19 21 5 19 97
Annual fee to Securities and Exchange Commission
of Pakistan 8 47 26 42 45 11 43 214
Auditors' remuneration 75 45 65 70 19 60 334
Fees and subscription 15 9 12 14 5 13 68
Printing charges - - - - - - -
Provision for Sindh Workers' Welfare Fund 10.1 1,232 1,432 2,369 2,605 566 984 9,188
Bank and settlement charges 6 4 - - 1 13 24
Total expenses 1,804 1,764 2,861 3,150 717 1,510 11,806

Net income for the quarter before 107,633 96,382 147,916 164,607 41,036 48,204 605,778
taxation

Taxation 14 - - - - - - -

Net income for the quarter after

taxation 107,633 96,382 147,916 164,607 41,036 48,204 605,778

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN STRATEGIC ALLOCATION FUND
CONDENSED INTERIM INCOME STATEMENT (UNAUDITED)
FOR THE QUARTER ENDED DECEMBER 31, 2019

For the quarter ended December 31, 2018

Note MSAP-I MSAP-II MSAP-III MSAP-IV MSAP-V MCPP-III Total
------------------------------------------------ (Rupees in '000) -------------------------------------------------------
Income
Net realised loss on sale of investments (12,317) (2,271) (3,402) (4,520) (1,839) (13,543) (37,892)
Profit on saving accounts with banks 69 88 42 39 35 8 281
Dividend income - - - - - - -
Other income - - - - 151 587 738
(12,248) (2,183) (3,360) (4,481) (1,653) (12,948) (36,873)
Net unrealised (diminution) / appreciation on
re-measurement of investments - 'at fair
value through profit or loss' (101,354) (75,356) (82,242) (88,109) (28,707) 14,066 (361,702)
Total (loss) / income (113,602) (77,539) (85,602) (92,590) (30,360) 1,118 (398,575)

Expenses
Remuneration of Al Meezan Investment
Management Limited - Management Company 35 17 16 17 15 5 105
Sindh Sales Tax on remuneration to 4 2 3 2 2 1 14
Management Company
Allocated expenses 12 441 298 330 354 118 338 1,879
Remuneration to Central Depository Company of
Pakistan Limited - Trustee 7 345 234 258 277 93 265 1,472
Sindh Sales Tax on trustee fee 44 31 34 36 12 34 191
Annual fee to Securities and Exchange Commission
of Pakistan 8 419 283 313 336 112 321 1,784
Auditors' remuneration 38 26 28 30 11 29 162
Fees and subscription 17 10 10 13 5 13 68
Printing charges 23 16 18 19 7 18 101
Provision for Sindh Workers' Welfare Fund 10.1 - - - - - 2 2
Bank and settlement charges 2 - - 2 - - 4
Total expenses 1,368 917 1,010 1,086 375 1,026 5,782

Net (loss) / income for the quarter before (114,970) (78,456) (86,612) (93,676) (30,735) 92 (404,357)
taxation

Taxation 14 - - - - - - -

Net (loss) / income for the quarter after

taxation (114,970) (78,456) (86,612) (93,676) (30,735) 92 (404,357)

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN STRATEGIC ALLOCATION FUND
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
FOR THE PERIOD ENDED DECEMBER 31, 2019

Six months period ended December 31, 2019

MSAP-I MSAP-II MSAP-III MSAP-IV MSAP-V MCPP-III Total
--------------------------------------------(Rupees in '000)---------------------------------------------
Net income for the
period after taxation 60,385 70,190 116,087 127,659 27,727 63,320 465,368

Other comprehensive income

for the period - - - - - - -

Total comprehensive income

for the period 60,385 70,190 116,087 127,659 27,727 63,320 465,368

Six months period ended December 31, 2018

MSAP-I MSAP-II MSAP-III MSAP-IV MSAP-V MCPP-III Total
--------------------------------------------(Rupees in '000)---------------------------------------------
Net (loss) / income for the
period after taxation (154,475) (102,911) (113,136) (124,322) (40,284) 6,512 (528,616)

Other comprehensive income - - - - - - -

for the period

Total comprehensive (loss) /

income for the period (154,475) (102,911) (113,136) (124,322) (40,284) 6,512 (528,616)

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN STRATEGIC ALLOCATION FUND
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
FOR THE QUARTER ENDED DECEMBER 31, 2019

For the quarter ended December 31, 2019

MSAP-I MSAP-II MSAP-III MSAP-IV MSAP-V MCPP-III Total
--------------------------------------------(Rupees in '000)---------------------------------------------
Net income for the
period after taxation 107,633 96,382 147,916 164,607 41,036 48,204 605,778

Other comprehensive income

for the period - - - - - - -

Total comprehensive income

for the period 107,633 96,382 147,916 164,607 41,036 48,204 605,778

For the quarter ended December 31, 2018

MSAP-I MSAP-II MSAP-III MSAP-IV MSAP-V MCPP-III Total
--------------------------------------------(Rupees in '000)---------------------------------------------
Net (loss) / income for the
period after taxation (114,970) (78,456) (86,612) (93,676) (30,735) 92 (404,357)

Other comprehensive income

for the period - - - - - - -

Total comprehensive (loss) /

income for the period (114,970) (78,456) (86,612) (93,676) (30,735) 92 (404,357)

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN STRATEGIC ALLOCATION FUND
STATEMENT OF MOVEMENT IN UNIT HOLDERS’ FUND (UNAUDITED)
FOR THE PERIOD ENDED DECEMBER 31, 2019

Six months period ended December 31, 2019

MSAP-I MSAP-II MSAP-III MSAP-IV MSAP-V MCPP-III Total
Capital Accumu- Capital Accumu- Capital Accumu- Capital Accumu- Capital Accumu- Capital Accumu- Capital Accumu-
Total Total Total Total Total Total Total
Value lated loss Value lated loss Value lated loss Value lated loss Value lated loss Value lated loss Value lated loss
---------------- (Rupees in '000) ----------------
---------------- (Rupees in '000) ----------------
---------------- (Rupees in '000) ----------------
---------------- (Rupees in '000) ----------------
---------------- (Rupees in '000) ----------------
---------------- (Rupees in '000) ----------------
---------------- (Rupees in '000) ----------------

Net assets at the beginning of the period 1,629,216 (561,733) 1,067,483 1,131,721 (403,923) 727,798 1,380,178 (489,047) 891,131 1,521,504 (518,730) 1,002,774 395,264 (79,268) 315,996 1,077,850 21,044 1,098,894 7,135,734 (2,031,657) 5,104,077

Redemption of units:
MSAP - I: 5,672,600 units / MSAP - II: 7,083,650 units /
MSAP - III: 3,823,287 units / MSAP - IV: 4,709,707 units / MSAP - V: 2,679,978 units,
MCPP - III: 156,425 units
- Capital value (at net asset value per unit at the beginning of the period) 206,937 - 206,937 255,048 - 255,048 134,103 - 134,103 167,919 - 167,919 109,314 - 109,314 315,216 - 315,216 873,321 - 873,321
- Element of (income) / loss (7,588) - (7,588) (5,348) - (5,348) (3,583) - (3,583) (4,843) - (4,843) (4,292) - (4,292) - 4,497 4,497 (25,654) 4,497 (21,157)
Total payments on redemption of units 199,349 - 199,349 249,700 - 249,700 130,520 - 130,520 163,076 - 163,076 105,022 - 105,022 315,216 4,497 319,713 847,667 4,497 852,164

Total comprehensive income / (loss) for the period - 60,385 60,385 - 70,190 70,190 - 116,087 116,087 - 127,659 127,659 - 27,727 27,727 - 63,320 63,320 - 402,048 402,048
Distribution during the period - - - - - - - - - - - - - - - - - - - - -
Net (loss) / income for the period less distribution - 60,385 60,385 - 70,190 70,190 - 116,087 116,087 - 127,659 127,659 - 27,727 27,727 - 63,320 63,320 - 402,048 402,048

Net assets at the end of the period 1,429,867 (501,348) 928,519 882,021 (333,733) 548,288 1,249,658 (372,960) 876,698 1,358,428 (391,071) 967,357 290,242 (51,541) 238,701 762,634 79,867 842,501 6,288,067 (1,634,106) 4,653,961

Accumulated loss brought forward

- Realised (loss) / income (351,036) (328,595) (404,214) (427,554) (50,077) (7,886) (1,569,362)
- Unrealised (loss) / income (210,697) (75,328) (84,833) (91,176) (29,191) 28,930 (462,295)
(561,733) (403,923) (489,047) (518,730) (79,268) 21,044 (2,031,657)
Accounting income available for distribution
- Relating to capital gains 40,084 64,515 107,667 118,633 25,195 37,249 393,343
- Excluding capital gains 20,301 5,675 8,420 9,026 2,532 21,574 67,528
60,385 70,190 116,087 127,659 27,727 58,823 460,871
Net (loss) / income for the period after taxation
Distribution during the period - - - - - - -
(Accumulated loss) / undistributed income carried forward (501,348) (333,733) (372,960) (391,071) (51,541) 79,867 (1,570,786)

(Accumulated loss) / undistributed income carried forward

- Realised loss (559,308) (402,208) (480,055) (508,193) (80,591) 56,873 (1,973,482)
- Unrealised (loss) / income 57,960 68,475 107,095 117,122 29,050 22,994 402,696
(501,348) (333,733) (372,960) (391,071) (51,541) 79,867 (1,570,786)

Rupees Rupees Rupees Rupees Rupees Rupees

Net asset value per unit as at the beginning of the period 36.4801 36.0051 35.0753 35.6538 40.7893 51.2011
Net asset value per unit as at the end of the period 39.3616 41.7582 40.6199 41.3124 47.1083 55.0443

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al-Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN STRATEGIC ALLOCATION FUND
STATEMENT OF MOVEMENT IN UNIT HOLDERS’ FUND (UNAUDITED)
FOR THE PERIOD ENDED DECEMBER 31, 2019

Six months period ended December 31, 2018

MSAP-I MSAP-II MSAP-III MSAP-IV MSAP-V MCPP-III Total
Capital Accumu- Capital Accumu- Capital Accumu- Capital Accumu- Capital Accumu- Capital Accumu- Capital Accumu-
Total Total Total Total Total Total Total
Value lated loss Value lated loss Value lated loss Value lated loss Value lated loss Value lated loss Value lated loss
---------------- (Rupees in '000) ----------------
---------------- (Rupees in '000) ----------------
---------------- (Rupees in '000) ----------------
---------------- (Rupees in '000) ----------------
---------------- (Rupees in '000) ----------------
---------------- (Rupees in '000) ----------------
---------------- (Rupees in '000) ----------------

Net assets at the beginning of the period 2,243,221 (297,759) 1,945,462 1,516,558 (227,213) 1,289,345 1,709,505 (286,294) 1,423,211 1,957,929 (292,424) 1,665,505 528,299 (7,187) 521,112 1,367,662 (2,491) 1,365,171 9,323,174 (1,113,368) 8,209,806

Redemption of units:
MSAP - I: 5,867,793 units / MSAP - II: 2,309,554 units / MSAP - III: 2,233,530 units /
MSAP - IV: 5,289,332 units / MSAP - V: 1,210,286 units, MCPP - III: 1,070,939 units
- Capital value (at net asset value per unit at the beginning of the period) 258,264 - 258,264 99,417 - 99,417 93,838 - 93,838 225,962 - 225,962 58,990 - 58,990 53,648 - 53,648 790,119 - 790,119
- Element of (income) / loss (9,481) - (9,481) (4,289) - (4,289) (3,242) - (3,242) (5,011) - (5,011) (2,310) - (2,310) (148) 335 187 (24,481) 335 (24,146)
Total payments on redemption of units 248,783 - 248,783 95,128 - 95,128 90,596 - 90,596 220,951 - 220,951 56,680 - 56,680 53,500 335 53,835 765,638 335 765,973

Total comprehensive (loss) / income for the period - (154,475) (154,475) - (102,911) (102,911) - (113,136) (113,136) - (124,322) (124,322) - (40,284) (40,284) - 6,512 6,512 - (528,616) (528,616)
Distribution during the period - - - - - - - - - - - - - - - - - - -
Net (loss) / income for the period less distribution - (154,475) (154,475) (102,911) (102,911) (113,136) (113,136) (124,322) (124,322) - (40,284) (40,284) - 6,512 6,512 (528,616) (528,616)

Net assets at the end of the period 1,994,438 (452,234) 1,542,204 1,421,430 (330,124) 1,091,306 1,618,909 (399,430) 1,219,479 1,736,978 (416,746) 1,320,232 471,619 (47,471) 424,148 1,314,162 3,686 1,317,848 8,557,536 (1,642,319) 6,915,217

Accumulated loss brought forward

- Realised (loss) / income (105,369) (74,165) (116,408) (121,353) 5,171 (14,702) (426,826)
- Unrealised (loss) / income (192,390) (153,048) (169,886) (171,071) (12,358) 12,211 (686,542)
(297,759) (227,213) (286,294) (292,424) (7,187) (2,491) (1,113,368)
Accounting income available for distribution
- Relating to capital gains - - - - - - -
- Excluding capital gains - - - - - 6,177 6,177
- - - - - 6,177 6,177
Net (loss) / income for the period after taxation (154,475) (102,911) (113,136) (124,322) (40,284) - (535,128)
Distribution during the period - - - - - - -
(Accumulated loss) / undistributed income carried forward (452,234) (330,124) (399,430) (416,746) (47,471) 3,686 (1,642,319)

(Accumulated loss) / undistributed income carried forward

- Realised loss (326,295) (224,080) (283,896) (292,288) (6,466) (6,868) (1,139,893)
- Unrealised (loss) / income (125,939) (106,044) (115,534) (124,458) (41,005) 10,554 (502,426)
(452,234) (330,124) (399,430) (416,746) (47,471) 3,686 (1,642,319)

Rupees Rupees Rupees Rupees Rupees Rupees

Net asset value per unit as at the beginning of the period 44.0138 43.0461 42.0135 42.7203 48.7410 50.0951
Net asset value per unit as at the end of the period 40.2313 39.4784 38.5404 39.1796 44.7359 50.3368

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al-Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN STRATEGIC ALLOCATION FUND
CONDENSED INTERIM CASH FLOW STATEMENT (UNAUDITED)
FOR THE PERIOD ENDED DECEMBER 31, 2019

Six months period ended December 31, 2019

MSAP-I MSAP-II MSAP-III MSAP-IV MSAP-V MCPP-III Total
----------------------(Rupees in '000)-----------------------
CASH FLOWS FROM OPERATING ACTIVITIES

Net income for the period before taxation 60,385 70,190 116,087 127,659 27,727 63,320 465,368

Adjustments for:
Net unrealised (appreciation) on re-measurement
of investments 'at fair value through profit or loss' (57,960) (68,475) (107,095) (117,122) (29,050) (22,994) (402,696)
2,425 1,715 8,992 10,537 (1,323) 40,326 62,672
Decrease in assets
Investments - net 188,553 243,764 107,379 153,345 96,457 288,155 1,077,653
Receivable against sale of investments (130) - - - - - (130)
Other receivables (13) (7) 5 (25) (20) (56) (116)
188,410 243,757 107,384 153,320 96,437 288,099 1,077,407
Increase in liabilities

Payable to Al Meezan Investment Management Limited -

Management Company (19) (19) (6) (8) (10) (15) (77)
Payable to Central Depository Company of Pakistan
Limited - Trustee (22) (19) (10) (12) (8) (28) (99)
Payable to Securities and Exchange Commission of
Pakistan (1,394) (976) (1,080) (1,201) (389) (1,127) (6,167)
Payable against purchase of investments 765 159 265 333 68 751 2,341
Accrued expenses and other liabilities 1,231 1,426 2,378 2,438 555 1,444 9,473
561 571 1,547 1,550 216 1,025 5,470

Net cash generated from operating activities 191,396 246,043 117,923 165,407 95,330 329,450 1,145,549

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts against issuance and conversion of units - - - - - - -

Payments against redemption and conversion of units (197,760) (249,898) (130,520) (164,720) (105,022) (322,652) (1,170,572)
Net cash used in financing activities (197,760) (249,898) (130,520) (164,720) (105,022) (322,652) (1,170,572)

Net increase in cash and cash equivalents

during the period (6,364) (3,855) (12,597) 687 (9,692) 6,798 (25,023)
Cash and cash equivalents at the beginning of the period 11,970 4,377 13,180 335 13,450 1,148 44,460

Cash and cash equivalents at the end of the period 5,606 522 583 1,022 3,758 7,946 19,437

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN STRATEGIC ALLOCATION FUND
CONDENSED INTERIM CASH FLOW STATEMENT (UNAUDITED)
FOR THE PERIOD ENDED DECEMBER 31, 2019

Six months period ended December 31, 2018

MSAP-I MSAP-II MSAP-III MSAP-IV MSAP-V MCPP-III Total
----------------------(Rupees in '000)-----------------------
CASH FLOWS FROM OPERATING ACTIVITIES

Net (loss) / income for the period before taxation (154,475) (102,911) (113,136) (124,322) (40,284) 6,512 (528,616)

Adjustments for:
Net unrealised diminution / (appreciation) on re-measurement
of investments 'at fair value through profit or loss' 125,939 106,044 115,534 124,458 41,005 (10,554) 502,426
(28,536) 3,133 2,398 136 721 (4,042) (26,190)
Decrease / (increase) in assets
Investments - net 306,900 95,873 97,311 222,951 58,923 58,378 840,336
Receivable against sale of investments (820) (630) - 200 (360) 270 (1,340)
Other receivables (34) (10) (16) 9 5 2 (44)
306,046 95,233 97,295 223,160 58,568 58,650 838,952
(Decrease) / increase in liabilities

Payable to Al Meezan Investment Management Limited -

Management Company (8) (8) (3) (20) (4) - (43)
Payable to Central Depository Company of Pakistan
Limited - Trustee (23) (9) (10) (20) (5) 2 (65)
Payable to Securities and Exchange Commission of
Pakistan (1,231) (787) (848) (964) (155) 79 (3,906)
Payable against purchase of investments - - - - - - -
Accrued expenses and other liabilities (30) (35) (22) (20) - 171 64
(1,292) (839) (883) (1,024) (164) 252 (3,950)

Net cash generated from operating activities 276,218 97,527 98,810 222,272 59,125 54,860 808,812

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts against issuance and conversion of units - - - - - - -

Payments against redemption and conversion of units (248,764) (94,126) (89,500) (219,602) (56,178) (54,309) (762,479)
Net cash used in financing activities (248,764) (94,126) (89,500) (219,602) (56,178) (54,309) (762,479)

Net increase in cash and cash equivalents

during the period 27,454 3,401 9,310 2,670 2,947 551 46,333
Cash and cash equivalents at the beginning of the period 9,147 1,707 2,158 6,740 5,090 2,939 27,781

Cash and cash equivalents at the end of the period 36,601 5,108 11,468 9,410 8,037 3,490 74,114

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN STRATEGIC ALLOCATION FUND
NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
FOR THE PERIOD ENDED DECEMBER 31, 2018

1. LEGAL STATUS AND NATURE OF BUSINESS

1.1 Meezan Strategic Allocation 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 September 8, 2016 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). The Fund is registered as a Notified entity under the Non-Banking Finance Companies and Notified Entities
Regulations, 2008, (the NBFC Regulations) issued through S.R.O.1203(I)/2008 on October 10, 2016. The Management
Company has been licensed by the 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, Shahrah-e-Faisal, Karachi 74400, Pakistan.

1.2 The Fund has been formed to enable the unitholders to participate in a diversified portfolio of equity schemes and fixed income
/ money market schemes, which are Shariah compliant. Under the Trust Deed, all the conducts and acts of the Fund are
based on Shariah guidelines. 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 Fund of Funds Scheme. Units are offered for public subscription on a continuous
basis till the end of the subscription period. However, the subscription in units may be reopened for fresh issuance by the
Management Company with prior approval of the Commission after intimation to the Trustee and by providing notice to
investors in order to protect the interest of the unitholders. The units of the plan are transferable and can be redeemed by
surrendering them to the Fund. The Fund is listed on the Pakistan Stock Exchange.

1.4 Title to the assets of the Fund are held in the name of CDC as the Trustee of the Fund. The Fund's property comprises of
different types of allocation plans which are accounted for and maintained separately in the books of accounts and collectively
constitute the Fund's property.

1.5 The Management Company has been assigned a quality rating of AM1 by VIS Credit Rating Company Limited dated
December 31, 2019 (2018: AM1 dated December 28, 2018) and by PACRA dated December 28, 2019. The rating reflects the
Company’s experienced management team, structured investment process and sound quality of systems and processes.

1.6 The Fund is an open-end Shariah compliant Fund of Funds Scheme that aims to generate returns on investment as per
allocation plans (sub funds) namely Meezan Strategic Allocation Plan-I (MSAP-I), Meezan Strategic Allocation Plan-II (MSAP-
II), Meezan Strategic Allocation Plan-III (MSAP-III), Meezan Strategic Allocation Plan-IV (MSAP-IV), Meezan Strategic
Allocation Plan-V (MSAP-V) and Meezan Capital Preservation Plan-III (MCPP-III) by investing in Shariah compliant fixed
income / money market and equity mutual funds in line with the risk tolerance of the investor. Investors of the Fund may hold
different types of allocation plans and may invest in any one or more of the available allocation plans. The management may
also invest in other Collective Investments Schemes available to it with prior approval of the SECP.

1.7 A brief description of the plans is as follows:

Meezan Strategic Allocation Plan-I Low risk - High return through asset allocation
(MSAP-I) The allocation plan commenced its operations from October 19, 2016 and can invest
its portfolio between the Equity asset classes / schemes and Fixed Income or Money
Market asset classes / schemes based on the macroeconomic view and outlook of
such asset classes up to 100 percent. The initial maturity of this plan is two years
from the close of the subscription period (i.e. December 2, 2016). Units shall be
subject to front end load. An early exit fee shall also be charged in case of
redemption before the completion of the initial maturity of the plan. During the year
ended June 30, 2019, the SECP approved the extension of the plan by one year vide
its letter no. SCD/AMCW/MSAF/MSAP-1/178/2018 dated November 16, 2018; and a
further extension of one year was approved vide letter no. SCD/AMCW/MSAF/MSAP-
1/142/2019 dated November 19, 2019.
Meezan Strategic Allocation Plan-II Low risk - High return through asset allocation
(MSAP-II) This allocation plan commenced its operations from December 22, 2016 and can
invest its portfolio between the Equity asset classes / schemes and Fixed Income or
Money Market asset classes / schemes based on the macroeconomic view and
outlook of such asset classes up to 100 percent. The initial maturity of this plan is
two years from the close of the subscription period (i.e. January 31, 2017). Units
shall be subject to front end load. An early exit fee shall also be charged in case of
redemption before the completion of the initial maturity of the plan.
 2

Meezan Strategic Allocation Plan-III Low risk - High return through asset allocation
(MSAP-III) This allocation plan commenced its operations from February 20, 2017 and can invest
its portfolio between the Equity asset classes / schemes and Fixed Income or Money
Market asset classes / schemes based on the macroeconomic view and outlook of
such asset classes up to 100 percent. The initial maturity of this plan is two years from
the close of the subscription period (i.e. April 3, 2017). Units shall be subject to front
end load. An early exit fee shall also be charged in case of redemption before the
completion of the initial maturity of the plan.
Meezan Strategic Allocation Plan-IV Low risk - High return through asset allocation
(MSAP-IV) This allocation plan commenced its operations from April 24, 2017 and can invest its
portfolio between the Equity asset classes / Schemes and Fixed Income or Money
Market asset classes / Schemes based on the macroeconomic view and outlook of
such asset classes up to 100 percent. The initial maturity of this plan is two years from
the close of the subscription period (i.e. June 30, 2017). Units shall be subject to front
end load. An early exit fee shall also be charged in case of redemption before the
completion of the initial maturity of the plan.
Meezan Strategic Allocation Plan-V Low risk - High return through asset allocation
(MSAP-V) This allocation plan commenced its operations from August 15, 2017 and can invest
its portfolio between the Equity asset classes / schemes and Fixed Income or Money
Market asset classes / schemes based on the macroeconomic view and outlook of
such asset classes up to 100 percent. The initial maturity of this plan is two years from
the close of the subscription period. The initial maturity of this plan is two years from
the close of the subscription period (i.e. October 19, 2017). Units shall be subject to
front end load. An early exit fee shall also be charged in case of redemption before the
completion of the initial maturity of the plan. The SECP approved the extension for
the plan by one year vide its letter no. SCD/AMCW/AMIML/109/2019 dated October
11, 2019.
Meezan Capital Preservation Plan-III Low risk - High return through asset allocation
(MCPP-III) This allocation plan commenced its operations from December 19, 2017 and can
invest its portfolio between the Equity asset classes / schemes and Fixed Income or
Money Market asset classes / schemes based on the macroeconomic view and
outlook of such asset classes up to 100 percent. The initial maturity of this plan is two
years from the close of the subscription period (i.e. December 31, 2017). Units shall
be subject to front end load. An early exit fee shall also be charged in case of
redemption before the completion of the initial maturity of the plan.

Each allocation plan announces separate Net Asset Values which ranks Pari Passu according to the number of units of the
respective allocation plans. The books and records of each plan have been maintained separately.

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 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.

3 BASIS OF PREPARATION

3.1 STATEMENT OF COMPLIANCE

These condensed interim 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 Accounting Standard (IAS) 34, Interim Financial Reporting, 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
 3

- 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.

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 'International Accounting
Standard (IAS) 34, Interim Financial Reporting, 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.

The disclosures made in these condensed interim financial statements have, however, been limited based on the requirements
of the International Accounting Standard 34: 'Interim Financial Reporting'. These condensed interim financial statements do
not include all the information and disclosures required in a full set of financial statements and should be read in conjunction
with the annual published audited financial statements of the Fund for the period ended June 30, 2019.

These condensed interim financial statements are unaudited. However, a limited scope review has been performed by the
statutory auditors. In compliance with Schedule V of the NBFC Regulations, the directors of the Management Company declare
that these condensed interim financial statements give a true and fair view of the state of affairs of the Fund as at December
31, 2019.

4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, JUDGMENTS AND RISK

MANAGEMENT

4.1 The accounting policies adopted and the methods of computation of balances used in the preparation of these condensed
interim financial statements are the same as those applied in the preparation of the annual audited financial statements of the
Fund for the year ended June 30, 2019.

4.2 The preparation of these condensed interim financial statements in conformity with accounting and reporting standards as
applicable in Pakistan require management to make estimates, assumptions and use judgments that affect the application of
policies and reported amounts of assets, liabilities, income and expenses. Estimates, assumptions and judgments are
continually evaluated and are based on historical experience and other factors, including reasonable expectations of future
events. Revisions to accounting estimates are recognised prospectively commencing from the period of revision. In preparing
the condensed interim financial information, the significant judgments made by management in applying the Fund’s accounting
policies and the key sources of estimation and uncertainty were the same as those applied to the financial statements as at and
for the period ended June 30, 2019. The Fund’s financial risk management objectives and policies are consistent with those
disclosed in the annual audited financial statements of the Fund for the year ended June 30, 2019.

4.3 Standards and amendments to published accounting and reporting standards that are effective in the current period

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, 2019. However, these do not have any significant impact on the Fund's operations and,
therefore, have not been detailed in these condensed interim financial statements.

4.4 Standards, interpretations and amendments to published accounting and reporting standards that are not yet 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, 2020
- IAS 8 - 'Accounting policies, change in accounting
estimates and errors' (amendment) January 1, 2020

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 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, 2020. However, these do not have any significant impact on the Fund's
operations and, therefore, have not been detailed in these condensed interim financial statements.
 4

5 BALANCES WITH BANKS

Note December 31, 2019 (Unaudited)
MSAP -I MSAP-II MSAP-III MSAP-IV MSAP-V MCPP-III Total
--------------------------------------------- (Rupees in '000) ----------------------------------------------

Saving accounts 5.1 5,595 512 573 1,012 3,115 7,301 18,108
Current accounts 11 10 10 10 643 645 1,329
5,606 522 583 1,022 3,758 7,946 19,437

June 30, 2019 (Audited)

MSAP-I MSAP-II MSAP-III MSAP-IV MSAP-V MCPP-III Total
--------------------------------------------- (Rupees in '000) ----------------------------------------------

Saving accounts 5.1 11,904 4,180 13,170 97 7,807 503 37,661

Current accounts 66 197 10 238 5,643 645 6,799
11,970 4,377 13,180 335 13,450 1,148 44,460

5.1 The balance in saving accounts have an expected profit ranging from 3.20% to 12.75% per annum (June 30, 2019: 6.30% to
11.85% per annum).

6 INVESTMENTS
December 31, 2019 (Unaudited)
Note MSAP -I MSAP-II MSAP-III MSAP-IV MSAP-V MCPP-III Total
--------------------------------------------- (Rupees in '000) ----------------------------------------------
Investments - 'at fair value
through profit or loss' 6.1 933,101 549,731 879,211 971,823 235,681 837,800 4,407,347

June 30, 2019 (Audited)

MSAP-I MSAP-II MSAP-III MSAP-IV MSAP-V MCPP-III Total
--------------------------------------------- (Rupees in '000) ----------------------------------------------
Investments - 'at fair value
through profit or loss' 1,063,694 725,020 879,495 1,008,046 303,088 1,102,961 5,082,304

6.1 Investments - 'at fair value through profit or loss' - Units of mutual funds

Percentage in relation to
Unrealised
Carrying Market
Purchases Redemptions As at (loss) / Net assets of Total
As at July 1, value as at value as at
during the during the December gain as at the Fund on market
Name of investee funds 2019 December December
period period 31, 2019 December the basis of value of
31, 2019 31, 2019
31, 2019 market value investments

----------------------- (Number of units) ---------------------- -------------------- (Rupees in '000) -------------------

--------------- (Percentage) ---------------

Meezan Strategic Allocation Plan-I

Al Meezan Mutual Fund 18,848,470 - 9,928,458 8,920,012 119,137 143,757 24,620 15.48 15.41
Kse Meezan Index Fund 202,085 - 197,774 4,311 228 278 49 0.03 0.03
Meezan Dedicated Equity Fund 8,724,482 - 7,953,696 770,785 27,373 32,585 5,212 3.51 3.49
Meezan Islamic Fund 3,358,169 2,561,573 2,825,371 3,094,372 150,235 178,314 28,079 19.20 19.11
Meezan Cash Fund - 11,301,674 11,301,674 - - - - - -
Meezan Islamic Income Fund 4,983,964 1,653,461 6,637,425 - - - - - -
Meezan Rozana Amdani Fund 1,486,485 24,936,618 14,859,762 11,563,341 578,167 578,167 - 62.27 61.96
875,140 933,101 57,960 100.49 100.00
Meezan Strategic Allocation Plan-II
Al Meezan Mutual Fund 22,818,599 - 9,890,452 12,928,147 172,670 208,353 35,683 38.00 37.90
Kse Meezan Index Fund 137,871 - 345 137,526 7,282 8,854 1,573 1.61 1.61
Meezan Dedicated Equity Fund 1,238,827 - 234,945 1,003,881 35,651 42,440 6,788 7.74 7.72
Meezan Islamic Fund 2,983,781 - 463,901 2,519,880 120,778 145,209 24,431 26.48 26.41
Meezan Cash Fund 1,615 - 1,615 - - - - - -
Meezan Islamic Income Fund 3,408,091 1,128,244 4,536,335 - - - - - -
Meezan Rozana Amdani Fund 1,014,332 3,565,656 1,682,470 2,897,518 144,876 144,876 - 26.42 26.35
481,257 549,731 68,475 100.26 100.00
Meezan Strategic Allocation Plan-III
Kse Meezan Index Fund 168,089 206,923 938 374,075 18,852 24,084 5,232 2.75 2.74
Meezan Dedicated Equity Fund 1,980,130 820,109 1,976,778 823,460 32,119 34,812 2,693 3.97 3.96
Meezan Islamic Fund 10,949,099 1,080,780 1,971,476 10,058,402 480,448 579,617 99,170 66.11 65.92
Meezan Cash Fund 116,448 - 116,448 - - - - - -
Meezan Islamic Income Fund 4,056,912 1,361,671 5,418,583 - - - - - -
Meezan Rozana Amdani Fund 1,222,400 5,550,915 1,959,367 4,813,949 240,697 240,697 - 27.46 27.38
772,116 879,211 107,095 100.29 100.00

Percentage in relation to
Unrealised
Carrying Market
Purchases Redemptions As at (loss) / Net assets of Total
As at July 1, value as at value as at
during the during the December gain as at the Fund on market
 Meezan Islamic Fund 10,949,099 1,080,780 1,971,476 10,058,402 480,448 579,617 99,170 66.11 65.92
Meezan Cash Fund 116,448 - 116,448 - - - - - -
Meezan Islamic Income Fund 4,056,912 1,361,671 5,418,583 - - - - - -
Meezan Rozana Amdani Fund 1,222,400 5,550,915 1,959,367 4,813,949 240,697 240,697 - 27.46 27.38
5 772,116 879,211 107,095 100.29 100.00

Percentage in relation to
Unrealised
Carrying Market
Purchases Redemptions As at (loss) / Net assets of Total
As at July 1, value as at value as at
during the during the December gain as at the Fund on market
Name of investee funds 2019 December December
period period 31, 2019 December the basis of value of
31, 2019 31, 2019
31, 2019 market value investments

----------------------- (Number of units) ---------------------- -------------------- (Rupees in '000) -------------------

--------------- (Percentage) ---------------

Meezan Strategic Allocation Plan-IV

Al Meezan Mutual Fund 1,877,734 2,318,303 - 4,196,037 55,079 67,624 12,545 6.99 6.96
Kse Meezan Index Fund 190,753 206,923 994 396,682 20,049 25,540 5,491 2.64 2.63
Meezan Dedicated Equity Fund 1,740,577 1,884,785 2,328,394 1,296,968 45,025 54,830 9,805 5.67 5.64
Meezan Islamic Fund 12,489,097 808,964 3,446,984 9,851,076 478,388 567,670 89,282 58.68 58.41
Meezan Cash Fund 158,201 - 158,201 - - - - - -
Meezan Islamic Income Fund 4,583,447 1,558,582 6,142,029 - - - - - -
Meezan Rozana Amdani Fund 1,378,452 5,765,768 2,021,040 5,123,180 256,159 256,159 - 26.48 26.36
854,701 971,823 117,122 100.46 100.00
Meezan Strategic Allocation Plan-V
Kse Meezan Index Fund 56,659 - 142 56,518 2,993 3,639 646 1.52 1.54
Meezan Dedicated Equity Fund 978,486 - 274,392 704,093 25,005 29,766 4,761 12.47 12.63
Meezan Islamic Fund 3,635,008 - 1,196,390 2,438,618 116,883 140,526 23,643 58.87 59.63
Meezan Cash Fund 786,420 - 786,420 - - - - - -
Meezan Islamic Income Fund 787,065 272,288 1,059,353 - - - - - -
Meezan Rozana Amdani Fund 220,080 1,795,734 780,807 1,235,008 61,750 61,750 - 25.87 26.20
206,631 235,681 29,050 98.73 100.00
Meezan Strategic Allocation
Plan - MCPP-III
Meezan Dedicated Equity Fund 5,644,575 7,554,482 9,551,014 3,648,044 131,229 154,223 22,994 18.31 18.41
Meezan Cash Fund - 37,706,592 37,706,592 - - - - - -
Meezan Rozana Amdani Fund 4,521,293 37,336,058 28,185,812 13,671,539 683,577 683,577 - 81.14 81.59
Meezan Sovereign Fund 13,138,372 - 13,138,372 - - - - - -
814,806 837,800 22,994 99.44 100.00
Total investm ents in units of
m utual funds
Al Meezan Mutual Fund 43,544,803 2,318,303 19,818,910 26,044,196 346,885 419,733 72,848 9.53 9.52
Kse Meezan Index Fund 755,458 413,846 200,192 969,112 49,403 62,394 12,992 1.42 1.42
Meezan Dedicated Equity Fund 20,307,076 10,259,375 22,319,220 8,247,231 296,403 348,657 52,253 7.92 7.91
Meezan Islamic Fund 33,415,155 4,451,317 9,904,123 27,962,349 1,346,732 1,611,336 264,604 36.60 36.56
Meezan Cash Fund 1,062,684 49,008,266 50,070,949 - - - - - -
Meezan Islamic Income Fund 17,819,479 5,974,246 23,793,725 - - - - - -
Meezan Rozana Amdani Fund 9,843,042 78,950,750 49,489,257 39,304,534 1,965,227 1,965,227 - 44.64 44.59
Meezan Sovereign Fund 13,138,372 - 13,138,372 - - - - - -

Total 4,004,650 4,407,347 402,697 100.12 100.00

7. PAYABLE TO CENTRAL DEPORSITORY COMPANY OF PAKISTAN LIMITED - TRUSTEE

The Trustee is entitled to a monthly remuneration for services rendered to the Fund under the provisions of the trust deed.
Effective from July 1, 2019, the trustee has revised its tariff as under:

Previous tariff Revised Tariff

Net Assets (Rs.) Fee
0.070% per anum
Upto 1 Billion 0.10% of Net Assets
of Net Assets
Above 1 Billion Rs. 1 Million plus 0.075% per anum of Net Assets exceeding Rs. 1 Billion

Accordingly Fund has charged Trustee Fee @ 0.070% p.a. of Net Assets during the period.

8. PAYABLE TO THE SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN (SECP)

In accordance with the NBFC Regulations, a Collective Investment Scheme (CIS) is required to pay annual fee to the Securities
and Exchange Commission of Pakistan (SECP).

Effective from July 1, 2019, the SECP vide SRO No. 685(I)/2019 dated June 28, 2019, revised the rate of annual fee to 0.02%
of net assets, applicable on all categories of CISs. Previously, the rate of annual fee applicable to fund of funds was 0.095%.
Accordingly, the Fund has charged SECP Fee at the rate of 0.02% of net assets during the current period.
 6

9. CONTINGENCIES AND COMMITMENTS

There were no contingencies and commitments outstanding as at December 31, 2019 and June 30, 2019.

10. ACCRUED EXPENSES AND OTHER LIABILITIES

December 31, 2019 (Unaudited)

Note MSAP -I MSAP-II MSAP-III MSAP-IV MSAP-V MCPP-III Total
--------------------------------------------- (Rupees in '000) ----------------------------------------------

Auditors' remuneration payable 69 40 62 68 18 80 337

Shariah advisory fee payable 30 23 26 28 6 26 139
Printing charges payable 155 108 116 131 47 109 666
Capital gain tax 1 4 - - - 126 131
Zakat payable - 11 - - - 85 96
Provision for Sindh Workers' Welfare Fund 10.1 5,714 1,432 2,369 2,605 566 1,875 14,561
5,969 1,618 2,573 2,832 637 2,301 15,930

June 30, 2019 (Audited)

MSAP-I MSAP-II MSAP-III MSAP-IV MSAP-V MCPP-III Total
Note --------------------------------------------- (Rupees in '000) ----------------------------------------------

Auditors' remuneration payable 68 47 54 60 20 75 324

Shariah advisor fee payable 29 26 24 27 7 26 139
Printing charges payable 155 106 117 131 45 109 663
Capital gain tax - 2 - - - 37 39
Zakat payable 4 11 - 176 10 26 227
Provision for Sindh Workers' Welfare Fund 10.1 4,481 - - - - 583 5,064
4,737 192 195 394 82 857 6,456

10.1 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 on a prudent basis with effect from the date of enactment of the SWWF
Act, 2014 (i.e. starting from May 21, 2015).

Had the for SWWF not been recorded in the financial statements of the Fund for the period from May 21, 2015 to December
31, 2019, the net asset value of MSAP-I, MSAP-II, MSAP-III, MSAP-IV, MSAP-V and MCPP-III as at December 31, 2019 would
have been higher by Re 0.24/0.62%, 0.11/0.26%, 0.11/0.27, 0.11/0.27, 0.11/0.24% and 0.12/0.22% respectively, (June 30,
2019: 0.153/0.42% and 0.027/0.05% for MSAP-I & MCPP-III respectively).

10.2 Effective July 1, 2016 mutual funds have been excluded from levy of FED vide Finance Act, 2016, hence no provision for FED
has been recognised in the financial statements of the Fund since July 1, 2016.

11 TRANSACTIONS WITH CONNECTED PERSONS / RELATED PARTIES

Connected persons include Al Meezan Investment Management Limited being the Management Company, Central Depository
Company of Pakistan Limited being the Trustee, Meezan Bank Limited being the holding company of the Management
Company, Directors and Executives of the Management Company, other funds under the common management of 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 unitholders holding 10
percent or more of the Fund's net assets.

Transactions with connected persons / related parties are in the normal course of business, at contracted rates and terms
determined in accordance with market rates.

Remuneration payable to the Management Company and the Trustee is determined in accordance with the provisions of the
NBFC Rules, the NBFC Regulations and the Trust Deed respectively.
 7

Detail of transactions with connected persons and balances with them are as follows:

December 31, 2019 (Unaudited)

MSAP-I MSAP-II MSAP-III MSAP-IV MSAP-V MCPP-III Total
--------------------------------------------- (Rupees in '000) ----------------------------------------------
Al Meezan Investment Management Limited
- Management Company
Remuneration payable (Rs in '000) 5 1 - 1 3 6 16
Sindh Sales Tax on management fee (Rs in '000) 1 - - 1 - 1 3
Allocated expenses (Rs in '000) 79 46 74 81 20 71 371

Meezan Bank Limited

Bank balance (Rs in '000) 5,539 522 583 1,022 3,758 7,935 19,359
Profit receivable (Rs in '000) 68 18 8 36 32 66 228

Central Depository Company of Pakistan

Limited - Trustee
Trustee fee payable (Rs. in '000) 55 32 51 57 14 50 259
Sindh Sales Tax on trustee fee payable (Rs. in '000) 7 4 7 7 2 6 33

Al Meezan Mutual Fund

Investment (Rs in '000) 143,757 208,353 - 67,624 - - 419,733
Investment (Units) 8,920,012 12,928,147 - 4,196,037 - - 26,044,196

Kse Meezan Index Fund

Investment (Rs in '000) 278 8,854 24,084 25,540 3,639 - 62,394
Investment (Units) 4,311 137,526 374,075 396,682 56,518 - 969,112

Meezan Dedicated Equity Fund

Investment (Rs in '000) 32,585 42,440 34,812 54,830 29,766 154,223 348,657
Investment (Units) 770,785 1,003,881 823,460 1,296,968 704,093 3,648,044 8,247,231

Meezan Islamic Fund

Investment (Rs in '000) 178,314 145,209 579,617 567,670 140,526 - 1,611,336
Investment (Units) 3,094,372 2,519,880 10,058,402 9,851,076 2,438,618 - 27,962,349

Meezan Rozana Amdani Fund

Investment (Rs in '000) 578,167 144,876 240,697 256,159 61,750 683,577 1,965,227
Investment (Units) 11,563,341 2,897,518 4,813,949 5,123,180 1,235,008 13,671,539 39,304,534

Unitholders holding 10% or more units of the Fund

Investment (Rs in '000) 102,439 110,454 269,953 - 75,484 - 558,330
Investment (Units) 2,602,512 2,645,091 6,645,828 - 1,602,342 - 13,495,773

June 30, 2019 (Audited)

MSAP-I MSAP-II MSAP-III MSAP-IV MSAP-V MCPP-III Total
--------------------------------------------- (Rupees in '000) ----------------------------------------------
Al Meezan Investment Management Limited -
Management Company
Remuneration payable (Rs in '000) 10 4 4 4 5 2 29
Sindh Sales Tax on management fee (Rs in '000) 1 1 1 1 1 - 5
Allocated expenses (Rs in '000) 93 61 75 86 27 92 434
Investment (Rs in '000) - 71,996 - - - - 71,996
Investment (Units) - 1,999,600 - - - - 1,999,600

Meezan Bank Limited

Bank balance (Rs in '000) 11,958 4,377 13,180 335 13,450 1,138 44,438
Profit receivable (Rs in '000) 54 11 13 11 11 9 109

Central Depository Company of Pakistan

Limited - Trustee
Trustee fee payable (Rs in '000) 74 49 60 68 21 74 346
Sindh Sales Tax on trustee fee payable (Rs in '000) 10 6 8 8 3 10 45
 8

June 30, 2019 (Audited)

MSAP-I MSAP-II MSAP-III MSAP-IV MSAP-V MCPP-III Total
--------------------------------------------- (Rupees in '000) ----------------------------------------------
Directors and Executives of the
management company
Investment (Rs in '000) - - (12,369) - - - (12,369)
Investment (Units) - - (352,640) - - - (352,640)

Al Meezan Mutual Fund

Investment (Rs in '000) 251,742 304,767 - 25,079 - - 581,589
Investment (Units) 18,848,470 22,818,599 - 1,877,734 - - 43,544,803

Kse Meezan Index Fund

Investment (Rs in '000) 10,700 7,300 8,900 10,100 3,000 - 40,000
Investment (Units) 202,085 137,871 168,089 190,753 56,659 - 755,458

Meezan Dedicated Equity Fund

Investment (Rs in '000) 309,838 43,995 70,322 61,814 34,750 200,459 721,177
Investment (Units) 8,724,482 1,238,827 1,980,130 1,740,577 978,486 5,644,575 20,307,076

Meezan Islamic Fund

Investment (Rs in '000) 160,957 143,013 524,790 598,602 174,226 - 1,601,588
Investment (Units) 3,358,169 2,983,781 10,949,099 12,489,097 3,635,008 - 33,415,155

Meezan Rozana Amdani Fund

Investment (Rs in '000) 74,324 50,717 61,120 68,923 11,004 226,065 492,152
Investment (Units) 1,486,485 1,014,332 1,222,400 1,378,452 220,080 4,521,293 9,843,042

Meezan Cash Fund

Investment (Rs in '000) - 81 5,873 7,978 39,660 - 53,593
Investment (Units) - 1,615 116,448 158,201 786,420 - 1,062,684

Meezan Sovereign Fund

Investment (Rs in '000) - - - - - 676,437 676,437
Investment (Units) - - - - - 13,138,372 13,138,372

Meezan Islamic Income Fund

Investment (Rs in '000) 256,133 175,147 208,490 235,550 40,448 - 915,768
Investment (Units) 4,983,964 3,408,091 4,056,912 4,583,447 787,065 - 17,819,478

Unitholders holding 10% or more units

of the Fund
Investment (Rs in '000) - 95,237 233,104 356,182 76,205 169,673 930,401
Investment (Units) - 2,645,091 6,645,828 9,990,010 1,868,272 3,313,849 24,463,050

For the period ended December 31, 2019

Transactions during the period MSAP-I MSAP-II MSAP-III MSAP-IV MSAP-V MCPP-III Total
-----------------------------------------(Unaudited)-----------------------------------------
Al Meezan Investment Management Limited
- Management Company
Remuneration for the period (Rs in '000) 34 24 21 12 39 32 162
Sindh Sales Tax on management fee (Rs in '000) 4 2 3 2 5 4 20
Allocated expenses (Rs in '000) 472 274 409 447 123 472 2,197
Redeemed during the period (Rs in '000) - 68,876 - - - - 68,876
Redeemed during the period (Units) - 1,999,600 - - - - 1,999,600

Meezan Bank Limited

Profit on saving account (Rs in '000) 357 179 208 296 213 492 1,745

Central Depository Company of Pakistan

Limited - Trustee
Trustee fee (Rs in '000) 331 192 286 313 86 331 1,539
Sindh Sales Tax on trustee fee (Rs in '000) 43 25 37 41 11 43 200

Al Meezan Mutual Fund

Invested during the period (Rs in '000) - - - 30,000 - - 30,000
Invested during the period (Units) - - - 2,318,303 - - 2,318,303
Redeemed during the period (Rs in '000) 124,470 124,760 - - - - 249,230
Redeemed during the period (Units) 9,928,458 9,890,452 - - - - 19,818,910
 9

For the period ended December 31, 2019

MSAP-I MSAP-II MSAP-III MSAP-IV MSAP-V MCPP-III Total
-----------------------------------------(Unaudited)-----------------------------------------
Kse Meezan Index Fund
Invested during the period (Rs in '000) - - 10,000 10,000 - - 20,000
Invested during the period (Units) - - 206,923 206,923 - - 413,846
Redeemed during the period (Rs in '000) 10,027 18 48 51 7 - 10,152
Redeemed during the period (Units) 197,774 345 938 994 142 - 200,192

Meezan Dedicated Equity Fund

Invested during the period (Rs in '000) - - 32,000 65,000 - 258,000 355,000
Invested during the period (Units) - - 820,109 1,884,785 - 7,554,482 10,259,375
Redeemed during the period (Rs in '000) 275,200 8,300 68,000 87,430 9,650 316,385 764,965
Redeemed during the period (Units) 7,953,696 234,945 1,976,778 2,328,394 274,392 9,551,014 22,319,220

Meezan Islamic Fund

Invested during the period (Rs in '000) 125,000 - 50,000 45,000 - - 220,000
Invested during the period (Units) 2,561,573 - 1,080,780 808,964 - - 4,451,317
Redeemed during the period (Rs in '000) 128,060 22,810 93,310 156,890 52,340 - 453,410
Redeemed during the period (Units) 2,825,371 463,901 1,971,476 3,446,984 1,196,390 - 9,904,123

Meezan Cash Fund

Invested during the period (Rs in '000) 596,752 - - - - 1,920,793 2,517,545
Invested during the period (Units) 11,301,674 - - - - 37,706,592 49,008,266
Redeemed during the period (Rs in '000) 597,678 83 5,962 8,081 40,264 1,944,928 2,596,997
Redeemed during the period (Units) 11,301,674 1,615 116,448 158,201 786,420 37,706,592 50,070,949

Meezan Islamic Income Fund

Invested during the period (Rs in '000) 85,606 58,413 70,498 80,687 14,090 - 309,295
Invested during the period (Units) 1,653,461 1,128,244 1,361,670 1,558,582 272,289 - 5,974,246
Redeemed during the period (Rs in '000) 346,444 236,405 282,706 320,327 55,178 - 1,241,059
Redeemed during the period (Units) 6,637,425 4,536,335 5,418,583 6,142,029 1,059,353 - 23,793,725

Meezan Rozana Amdani Fund

Invested during the period (Rs in '000) 1,246,831 178,283 277,546 288,288 89,787 1,866,803 3,947,537
Invested during the period (Units) 24,936,618 3,565,656 5,550,915 5,765,768 1,795,734 37,336,058 78,950,750
Redeemed during the period (Rs in '000) 742,988 84,123 97,968 101,052 39,040 1,409,291 2,474,463
Redeemed during the period (Units) 14,859,762 1,682,470 1,959,367 2,021,040 780,807 28,185,812 49,489,257
Dividend during the period (Rs in '000) 22,292 7,584 11,531 12,361 3,209 24,806 81,783
Dividend during the period (Units) 445,848 151,670 230,627 247,215 64,189 496,118 1,635,667

Meezan Sovereign Fund

Redeemed during the period (Rs in '000) - - - - - 677,403 677,403
Redeemed during the period (Units) - - - - - 13,138,372 13,138,372

For the period ended December 31, 2018

MSAP-I MSAP-II MSAP-III MSAP-IV MSAP-V MCPP-III Total
-----------------------------------------(Unaudited)-----------------------------------------
Al Meezan Investment Management Limited
- Management Company
Remuneration for the period (Rs in '000) 56 50 27 45 28 15 221
Sindh Sales Tax on management fee (Rs in '000) 7 7 4 6 4 2 30
Allocated expenses (Rs in '000) 919 617 678 756 247 680 3,897

Meezan Bank Limited

Profit on saving account (Rs in '000) 106 166 71 101 66 31 541

Central Depository Company of Pakistan

Limited - Trustee
Trustee fee (Rs in '000) 719 483 530 591 194 532 3,049
Sindh Sales Tax on trustee fee (Rs in '000) 93 63 69 77 25 69 396

Al Meezan Mutual Fund

Invested during the period (Rs in '000) 100,000 - - - - - 100,000
Invested during the period (Units) 5,972,333 - - - - - 5,972,333
 10

For the period ended December 31, 2018

MSAP-I MSAP-II MSAP-III MSAP-IV MSAP-V MCPP-III Total
-----------------------------------------(Unaudited)-----------------------------------------
Meezan Dedicated Equity Fund
Invested during the period (Rs in '000) 658,000 - - - - 467,200 1,125,200
Invested during the period (Units) 14,059,235 - - - - 10,050,937 24,110,172
Redeemed during the period (Rs in '000) 200,000 - - 6,220 - 445,872 652,092
Redeemed during the period (Units) 4,253,522 - - 131,830 - 9,825,883 14,211,235

Meezan Islamic Fund

Invested during the period (Rs in '000) 207,000 42,000 58,000 69,000 13,000 - 389,000
Invested during the period (Units) 3,444,947 735,631 1,015,919 1,208,617 227,685 - 6,632,799
Redeemed during the period (Rs in '000) 934,415 99,010 117,400 204,500 50,941 - 1,406,266
Redeemed during the period (Units) 15,390,424 1,618,999 1,931,954 3,354,237 841,167 - 23,136,781

Meezan Cash Fund

Invested during the period (Rs in '000) 3,941 3,550 6,421 7,630 4,644 490,577 516,763
Invested during the period (Units) 78,130 70,389 127,316 151,285 92,100 9,595,642 10,114,862
Redeemed during the period (Rs in '000) 97,777 68,750 96,330 133,600 41,090 517,044 954,591
Redeemed during the period (Units) 1,898,170 1,333,927 1,865,726 2,594,974 796,120 10,095,802 18,584,719
Dividend received during the period (Rs. In '000) 3,863 3,550 6,326 7,528 3,312 16,480 41,059
Dividend received during the period (Units) 76,590 70,388 125,430 149,265 65,681 326,778 814,132
Refund of Capital during the period (Rs. In '000) 78 - 95 102 1,332 33,815 35,422
Refund of Capital during the period (Units) 1,539 1 1,886 2,020 26,419 670,507 702,372

Meezan Islamic Income Fund

Invested during the period (Rs in '000) 76,984 57,052 62,481 60,088 19,798 - 276,403
Invested during the period (Units) 1,495,164 1,107,934 1,213,228 1,166,844 384,345 - 5,367,515
Redeemed during the period (Rs in '000) 73,910 22,000 - - - - 95,910
Redeemed during the period (Units) 1,396,349 415,558 - - - - 1,811,907
Dividend received during the period (Rs. In '000) 9,138 5,875 4,540 5,519 363 - 25,435
Dividend received during the period (Units) 177,821 114,319 88,340 107,383 7,061 - 494,924
Refund of Capital during the period (Rs. In '000) 7,846 4,177 3,941 4,569 435 - 20,968
Refund of Capital during the period (Units) 152,668 81,285 76,679 88,898 8,470 - 408,000

12 ALLOCATED EXPENSES

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).

Until June 19, 2019 there was a maximum cap of 0.1% of the average annual net assets of the scheme or actual whichever is
less, for allocation of such expense to the Fund. However, the SECP vide its SRO 639 dated June 20, 2019 removed the
maximum cap of 0.1%.

The management company based on its own discretion has currently fixed a maximum capping of 0.1% of the average annual
net assets of the scheme for allocation of such expenses to the Fund during the period.

13 TOTAL EXPENSE RATIO

The Total Expense Ratio (TER) of the Fund for the period ended December 31, 2019 are;

As at December 31, 2019

MSAP - I MSAP - II MSAP - III MSAP - IV MSAP - V MCPP - III
---------------------------------------Percentage (%)-------------------------------------
Total Expense Ratio (TER) 0.50 0.76 0.81 0.81 0.72 0.51
Government levy and SECP fee 0.29 0.55 0.61 0.61 0.49 0.3

As at June 30, 2019

MSAP - I MSAP - II MSAP - III MSAP - IV MSAP - V MCPP - III
---------------------------------------Percentage (%)-------------------------------------
Total Expense Ratio (TER) 0.32 0.31 0.31 0.31 0.32 0.35
Government levy and SECP fee 0.11 0.11 0.11 0.11 0.11 0.15
 11

14 TAXATION

The Fund's income is exempt from income tax as per clause (99) of part I of the Second Schedule to the Income Tax
Ordinance, 2001 subject to the condition that not less than 90 percent of the accounting income for the year as reduced by
capital gains, whether realised or unrealised, is distributed amongst the unitholders. Furthermore, as per regulation 63 of the
NBFC Regulations, the Fund is required to distribute 90 percent of the net accounting income other than capital gains to the
unitholders. The Fund has not recorded any tax liability in respect of income relating to the current period as the Management
Company intends to distribute at least 90 percent of the Fund's accounting income for the year ending June 30, 2020 as
reduced by capital gains (whether realised or unrealised) to its unitholders.

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.

15 FAIR VALUES OF FINANCIAL INSTRUMENTS

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 tradeable in an open market are revalued at 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.

15.1 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: Fair value measurements using quoted price (unadjusted) in an active market for identical assets or liabilities.

- Level 2: Fair value measurements using inputs other than quoted prices included within level 1 that are observable for the
asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

- Level 3: Fair value measurement using inputs for the asset or liability that are not based on observable market data (i.e.
unobservable inputs).

As at December 31, 2019 and June 30, 2019, the Fund held the following financial instruments measured at fair value:

As at December 31, 2019

Level 1 Level 2 Level 3 Total
ASSETS --------------------------------------- (Rupees in '000) ---------------------------------------

Financial assets 'at fair value through profit or loss'

Units of mutual funds - 4,407,347 - 4,407,347

As at June 30, 2019

Level 1 Level 2 Level 3 Total
ASSETS --------------------------------------- (Rupees in '000) ---------------------------------------

Financial assets 'at fair value through profit or loss'

Units of mutual funds - 5,082,304 - 5,082,304

16 GENERAL

16.1 Figures have been rounded off to the nearest thousand rupees.

16.2 Corresponding figures have been reclassified and rearranged in these condensed interim financial statements, wherever
necessary, for the purpose of better presentation. No significant rearrangements or reclassifications were made in these
condensed interim financial statements.
 12

17 DATE OF AUTHORISATION FOR ISSUE

February 10, 2020

17.1 These condensed interim financial statements were authorised for issue on _________________________ by the Board of
Directors of the Management Company.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
 PLANTING PROGRESS
Meezan
Strategic Allocation Fund-II
IN THE CITY OF GARDENS

DHA Lahore Branch

MEEZAN STRATEGIC Gulberg Branch, Lahore
ALLOCATION FUND-II (MSAF-II) Johar Town Branch
Meezan Strategic Allocation Fund-II is a Shariah
compliant scheme which will use active asset allocation
strategy for providing competitive returns on your
investment. It is a unique asset allocation fund for
investors who wish to benefit from the equity market BADSHAHI MOSQUE
(LAHORE)
and want an actively managed investment portfolio with
diversification.
 PLANTING PROGRESS
Meezan
Strategic Allocation Fund-II
IN THE CITY OF GARDENS

DHA Lahore Branch

MEEZAN STRATEGIC Gulberg Branch, Lahore
ALLOCATION FUND-II (MSAF-II) Johar Town Branch
Meezan Strategic Allocation Fund-II is a Shariah
compliant scheme which will use active asset allocation
strategy for providing competitive returns on your
investment. It is a unique asset allocation fund for
investors who wish to benefit from the equity market BADSHAHI MOSQUE
(LAHORE)
and want an actively managed investment portfolio with
diversification.
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. Mohammad Shoaib, CFA Chief Executive Officer
Mr. Muhammad Abdullah Ahmed Nominee Director - MBL
Mr. Mohammad Furquan R Kidwai Independent Director
Mr. ljaz Farooq Nominee Director - MBL
Mr. Moin M. Fudda Independent Director
Ms. Saima Kamila Khan Independent Director
Mr. Arshad Majeed Nominee Director - MBL
Mr. Naeem Abdul Sattar Nominee Director - PKIC
Syed Amir Ali Zaidi Nominee Director – PKIC

CFO & COMPANY SECRETARY OF THE MANAGEMENT COMPANY

Syed Owais Wasti

AUDIT COMMITTEE
Mr. Moin M. Fudda Chairman
Mr. Arshad Majeed Member
Mr. Naeem Abdul Sattar Member

RISK MANAGEMENT COMMITTEE

Mr. Muhammad Abdullah Ahmed Chairman
Syed Amir Ali Zaidi Member
Mr. Naeem Abdul Sattar Member

HUMAN RESOURSE & REMUNERATION COMMITTEE

Mr. Moin M. Fudda Chairman
Mr. Ariful Islam Member
Mr. Naeem Abdul Sattar 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

Bank Al Habib Limited - Islamic Banking
Meezan Bank Limited

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:

TRANSFER AGENT
Meezan Bank Limited
Meezan House
C-25, Estate Avenue, SITE, Karachi.
Phone: 38103538 Fax: 36406017
Website: www.meezanbank.com

DISTRIBUTORS
Al Meezan Investment Management Limited
Meezan Bank Limited
MEEZAN STRATEGIC ALLOCATION FUND - II
CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES
AS AT DECEMBER 31, 2019

December 31, 2019 (Unaudited)

Note MCPP-IV MCPP-V MCPP-VI MCPP-VII MCPP-VIII Total
------------------------------------------------ (Rupees in '000) -------------------------------------------------------
Assets
Balances with banks 5 2,603 2,315 2,098 409 3,964 11,389
Investments 6 1,378,524 305,814 299,270 168,948 95,551 2,248,107
Receivable against sale of investments 280 1,610 110 - - 2,000
Advances, deposits and other receivables 304 142 99 48 65 658
Total assets 1,381,711 309,881 301,577 169,405 99,580 2,262,154

Liabilities
Payable to Al Meezan Investment Management
Limited - Management Company 122 30 29 18 24 223
Payable to Central Depository Company of
Pakistan Limited - Trustee 7 93 24 20 12 7 156
Payable to Securities and Exchange Commission
of Pakistan 143 40 34 19 11 247
Payable against purchase of investments 991 477 215 148 60 1,891
Payable against redemption and conversion of units 1,145 1,704 223 - 110 3,182
Accrued expenses and other liabilities 10 3,270 1,651 872 461 223 6,477
Total liabilities 5,764 3,926 1,393 658 435 12,176

NET ASSETS 1,375,947 305,955 300,184 168,747 99,145 2,249,978

CONTINGENCIES AND COMMITMENTS 9

Unit holders’ fund (as per statement attached) 1,375,947 305,955 300,184 168,747 99,145 2,249,978

----------------------(Number of units) ----------------------

Number of units in issue 25,128,898 5,568,541 5,491,155 3,057,729 1,838,201

---------------------------- (Rupees) ----------------------------

Net asset value per unit 54.7556 54.9435 54.6668 55.1872 53.9359

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN STRATEGIC ALLOCATION FUND - II
CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES
AS AT DECEMBER 31, 2019

June 30, 2019 (Audited)

MCPP-IV MCPP-V MCPP-VI MCPP-VII MCPP-VIII Total
------------------------------------------------
Note (Rupees in '000) -------------------------------------------------------
Assets
Balances with banks 5 1,876 908 1,845 2,960 2,286 9,875
Investments 6 1,568,641 474,109 382,823 204,711 128,551 2,758,835
Advances, deposits and other receivables 52 5 21 12 7 97
Total assets 1,570,569 475,022 384,689 207,683 130,844 2,768,807

Liabilities
Payable to Al Meezan Investment Management
Limited - Management Company 137 44 45 20 25 271
Payable to Central Depository Company of
Pakistan Limited - Trustee 7 123 40 36 17 10 226
Payable to Securities and Exchange Commission
of Pakistan 1,803 626 467 176 56 3,128
Payable against purchase of investments - 252 - 35 - 287
Payable against redemption and conversion of units 14,713 - 50 - 9 14,772
Accrued expenses and other liabilities 10 745 153 65 23 20 1,006
Total liabilities 17,521 1,115 663 271 120 19,690

NET ASSETS 1,553,048 473,907 384,026 207,412 130,724 2,749,117

CONTINGENCIES AND COMMITMENTS 9

Unit holders’ fund (as per statement attached) 1,553,048 473,907 384,026 207,412 130,724 2,749,117

----------------------(Number of units) ----------------------

Number of units in issue 30,985,762 9,456,605 7,686,873 4,144,993 2,667,944

---------------------------- (Rupees) ----------------------------

Net asset value per unit 50.1213 50.1139 49.9586 50.0391 48.9980

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN STRATEGIC ALLOCATION FUND - II
CONDENSED INTERIM INCOME STATEMENT (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

Six months period ended December 31, 2019

Note MCPP-IV MCPP-V MCPP-VI MCPP-VII MCPP-VIII Total
------------------------------------------------ (Rupees in '000) -------------------------------------------------------
Income
Net realised gain / (loss) on sale of investments 12,568 3,800 1,805 2,142 (229) 20,086
Profit on saving accounts with banks 209 103 95 60 177 644
Dividend income 49,932 14,607 12,075 6,530 4,448 87,592
62,709 18,510 13,975 8,732 4,396 108,322
Net unrealised appreciation on re-measurement of
investments - 'at fair value through profit or loss' 6.1 60,961 14,711 14,276 9,176 5,404 104,528
Total income 123,670 33,221 28,251 17,908 9,800 212,850

Expenses
Remuneration to Al Meezan Investment Management
Limited - Management Company 11 6 10 9 18 54
Sindh Sales Tax on remuneration of the
Management Company 1 1 1 1 2 6
Allocated expenses 12 701 195 165 92 54 1,207
Remuneration to Central Depository Company of
Pakistan Limited - Trustee 7 491 137 115 65 38 846
Sindh Sales Tax on remuneration of the Trustee 64 18 15 8 5 110
Annual fee to Securities and Exchange Commission
of Pakistan 8 143 40 34 19 11 247
Auditors' remuneration 181 55 47 27 15 325
Fees and subscription 139 37 29 15 9 229
Provision for Sindh Workers' Welfare Fund 10.1 2,438 655 556 353 193 4,195
Bank and settlement charges 13 3 7 1 - 24
Total expenses 4,182 1,147 979 590 345 7,243

Net income for the period before taxation 119,488 32,074 27,272 17,318 9,455 205,607

Taxation 14 - - - - - -

Net income for the period after taxation 119,488 32,074 27,272 17,318 9,455 205,607

Allocation of net income for the period

Net income for the period after taxation 119,488 32,074 27,272 17,318 9,455 205,607
Income already paid on units redeemed (3,035) (5,180) (1,419) (1,577) (378) (11,589)
116,453 26,894 25,853 15,741 9,077 194,018

Accounting income available for distribution

- Relating to capital gains 73,529 18,511 16,081 11,318 5,175 124,614
- Excluding capital gains 42,924 8,383 9,772 4,423 3,902 69,404
116,453 26,894 25,853 15,741 9,077 194,018

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN STRATEGIC ALLOCATION FUND - II
CONDENSED INTERIM INCOME STATEMENT (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

For the period For the period For the period

from July 10, from September from December
December 31, 2018 2018 to 26, 2018 to 17, 2018 to
December 31, December 31, December 31,
2018 2018 2018
MCPP-IV MCPP-V MCPP-VI MCPP-VII MCPP-VIII Total
Note …...………..……………………... (Rupees in '000) ……………………………
Income
Net realised (loss) / gain on sale of investments (14,418) (4,863) 118 886 - (18,277)
Profit on balances with banks 190 186 329 223 8 936
Dividend income 13,834 1,360 - - - 15,194
(394) (3,317) 447 1,109 8 (2,147)
Net unrealised appreciation / (diminution) on
re-measurement of investments - 'at fair
value through profit or loss' (net) 6.1 20,010 8,761 3,127 (2,316) 13 29,595
Total Income / (loss) 19,616 5,444 3,574 (1,207) 21 27,448

Expenses
Remuneration to Al Meezan Investment Management
Limited - Management Company 58 65 126 60 3 312
Sindh Sales Tax on management fee 8 9 16 8 - 41
Allocated expenses 12 1,021 368 222 50 - 1,661
Remuneration to Central Depository Company of
Pakistan Limited - Trustee 7 844 304 183 41 - 1,372
Sindh Sales Tax on trustee fee 110 40 24 5 - 179
Annual fee to Securities and Exchange Commission
of Pakistan 8 970 350 211 47 - 1,578
Auditors' remuneration 79 28 16 3 - 126
Fees and subscription 84 30 17 4 - 135
Printing charges 63 23 13 3 - 102
Provision for Sindh Workers' Welfare Fund 10.1 327 84 55 - - 466
Bank and settlement charges 6 4 17 14 1 42
Total expenses 3,570 1,305 900 235 4 6,014

Net Income / (loss) for the period before taxation 16,046 4,139 2,674 (1,442) 17 21,434

Taxation 14 - - - - - -

Net Income / (loss) for the period after taxation 16,046 4,139 2,674 (1,442) 17 21,434

Allocation of net income for the period

Net Income for the period after taxation 16,046 4,139 2,674 - 17 22,876
Income already paid on units redeemed (1,188) (838) (436) - - (2,462)
14,858 3,301 2,238 - 17 20,414

Accounting income available for distribution

- Relating to capital gains 5,592 3,898 3,245 - 13 12,748
- Excluding capital gains 9,266 (597) (1,007) - 4 7,666
14,858 3,301 2,238 - 17 20,414

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN STRATEGIC ALLOCATION FUND - II
CONDENSED INTERIM INCOME STATEMENT (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

For the quarter ended December 31, 2019

Note MCPP-IV MCPP-V MCPP-VI MCPP-VII MCPP-VIII Total
------------------------------------------------ (Rupees in '000) -------------------------------------------------------
Income
Net realised gain on sale of investments 5,417 2,973 1,283 1,346 849 11,868
Profit on saving accounts with banks 75 81 64 17 109 346
Dividend income 31,299 8,142 6,895 3,757 2,036 52,129
36,791 11,196 8,242 5,120 2,994 64,343
Net unrealised appreciation on re-measurement of
investments - 'at fair value through profit or loss' 6.1 78,188 20,559 19,473 12,369 5,404 135,993
Total income 114,979 31,755 27,715 17,489 8,398 200,336

Expenses
Remuneration to Al Meezan Investment Management
Limited - Management Company 6 2 6 3 9 26
Sindh Sales Tax on management fee - 1 - - 1 2
Allocated expenses 12 345 90 79 45 24 583
Remuneration to Central Depository Company of
Pakistan Limited - Trustee 7 241 64 54 32 17 408
Sindh Sales Tax on trustee fee 32 9 7 4 2 54
Annual fee to Securities and Exchange Commission - - - - -
of Pakistan 8 69 18 16 9 5 117
Auditors' remuneration 133 43 37 21 12 246
Fees and subscription 100 25 19 10 6 160
Provision for Sindh Workers' Welfare Fund 10.1 2,280 630 550 347 166 3,973
Bank and settlement charges 13 3 2 1 - 19
Total expenses 3,219 885 770 472 242 5,588

Net income for the quarter before taxation 111,760 30,870 26,945 17,017 8,156 194,748

Taxation 14 - - - - - -

Net income for the quarter after taxation 111,760 30,870 26,945 17,017 8,156 194,748

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN STRATEGIC ALLOCATION FUND - II
CONDENSED INTERIM INCOME STATEMENT (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

For the period

from December
For the quarter ended December 31, 2018 17, 2018 to
Total
December 31,
2018

Note MCPP-IV MCPP-V MCPP-VI MCPP-VII MCPP-VIII

------------------------------------------------ (Rupees in '000) -------------------------------------------------------
Income
Net realised gain / (loss) on sale of investments 2,093 (2,473) 320 886 - 826
Profit on saving accounts with banks 89 26 44 220 8 387
Dividend income - - - - - -
2,182 (2,447) 364 1,106 8 1,213
Net unrealised appreciation / (diminution) on
re-measurement of investments - 'at fair
value through profit or loss' 9,834 4,879 2,445 (2,316) 13 14,855
Total income / (loss) 12,016 2,432 2,809 (1,210) 21 16,068

Expenses
Remuneration to Al Meezan Investment Management
Limited - Management Company 28 5 10 59 3 105
Sindh Sales Tax on management fee 4 1 1 8 - 14
Allocated expenses 12 500 177 155 50 - 882
Remuneration to Central Depository Company of
Pakistan Limited - Trustee 7 411 145 127 41 - 724
Sindh Sales Tax on trustee fee 54 19 17 5 - 95
Annual fee to Securities and Exchange Commission
of Pakistan 8 475 169 147 47 - 838
Auditors' remuneration 37 13 11 3 - 64
Fees and subscription 39 13 14 4 - 70
Printing charges 29 11 9 3 - 52
Provision for Sindh Workers' Welfare Fund 10.1 208 37 55 - - 300
Bank and settlement charges 4 3 7 14 1 29
Total expenses 1,789 593 553 234 4 3,173

Net income / (loss) for the quarter before taxation 10,227 1,839 2,256 (1,444) 17 12,895

Taxation 14 - - - - - -

Net income / (loss) for the quarter after taxation 10,227 1,839 2,256 (1,444) 17 12,895

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN STRATEGIC ALLOCATION FUND - II
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

Six months period ended December 31, 2019

MCPP-IV MCPP-V MCPP-VI MCPP-VII MCPP-VIII Total
--------------------------------------------(Rupees in '000)---------------------------------------------

Net income for the period after taxation 119,488 32,074 27,272 17,318 9,455 205,607

Other comprehensive income for the period - - - - - -

Total comprehensive income for the period 119,488 32,074 27,272 17,318 9,455 205,607

For the For the For the

period from period from period from
July 10, September December
December 31, 2018
2018 to 26, 2018 to 17, 2018 to
December December December
31, 2018 31, 2018 31, 2018
MCPP-IV MCPP-V MCPP-VI MCPP-VII MCPP-VIII Total
………………..….………….'(Rupees in '000)……….………..…..……….

Net income / (loss) for the period after taxation 16,049 4,139 2,675 (1,441) 16 21,438

Other comprehensive income for the period - - - - - -

Total comprehensive lncome / (loss) for the period 16,049 4,139 2,675 (1,441) 16 21,438

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN STRATEGIC ALLOCATION FUND - II
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

For the quarter ended December 31, 2019

MCPP-IV MCPP-V MCPP-VI MCPP-VII MCPP-VIII Total
--------------------------------------------(Rupees in '000)---------------------------------------------

Net income for the quarter after taxation 111,760 30,870 26,945 17,017 8,156 194,748

Other comprehensive income for the quarter - - - - - -

Total comprehensive income for the quarter 111,760 30,870 26,945 17,017 8,156 194,748

For the period

from December
For the quarter ended December 31, 2018 17, 2018 to
December 31,
2018

MCPP-IV MCPP-V MCPP-VI MCPP-VII MCPP-VIII Total

--------------------------------------------(Rupees in '000)---------------------------------------------

Net income for the quarter after taxation 10,227 1,839 2,256 (1,444) 17 12,895

Other comprehensive income for the quarter - - - - - -

Total comprehensive income / (loss) for the quarter 10,227 1,839 2,256 (1,444) 17 12,895

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN STRATEGIC ALLOCATION FUND - II
CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNITHOLDERS’ FUND (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019

Six months period ended Six months period ended Six months period ended Six months period ended Six months period ended Six months period ended
MCPP-IV MCPP-V MCPP-VI MCPP-VII MCPP-VIII Total
---------------- (Rupees in '000) -------------------------------- (Rupees in '000) ----------------
---------------- (Rupees in '000) ----------------
---------------- (Rupees in '000) ----------------
---------------- (Rupees in '000) -------------------------------- (Rupees in '000) ----------------
Undistributed Undistributed Undistributed Undistributed Undistributed
income / Capital Undistributed Capital income / Capital income / Capital income / income /
Capital Value Total Total Total Total Total Capital Value Total
(accumulated Value income Value (accumulated Value (accumulated Value (accumulated (accumulated
loss) loss) loss) loss) loss)

Net assets at the beginning of the period 1,563,055 (10,007) 1,553,048 473,102 805 473,907 385,555 (1,529) 384,026 209,309 (1,897) 207,412 134,344 (3,620) 130,724 2,765,365 (16,248) 2,749,117

Redemption of units:
MCPP-IV: 5,856,864 / MCPP-V: 3,888,064 /
MCPP-VI: 2,195,718 MCPP-VII: 1,087,264 /
MCPP-VIII: 829,743 units
- Capital value (at net asset value per unit at
the beginning of the period) 293,554 - 293,554 194,846 - 194,846 109,695 - 109,695 54,406 - 54,406 40,656 - 40,656 693,157 - 693,157
- Element of income - 3,035 3,035 - 5,180 5,180 - 1,419 1,419 1,577 1,577 378 378 - 11,589 11,589
Total payments on redemption of units 293,554 3,035 296,589 194,846 5,180 200,026 109,695 1,419 111,114 54,406 1,577 55,983 40,656 378 41,034 693,157 11,589 704,746

Total comprehensive income for the period - 119,488 119,488 - 32,074 32,074 - 27,272 27,272 - 17,318 17,318 - 9,455 9,455 - 205,607 205,607
Net income for the period less distribution - 119,488 119,488 - 32,074 32,074 - 27,272 27,272 - 17,318 17,318 - 9,455 9,455 - 205,607 205,607

Net assets at the end of the period 1,269,501 106,446 1,375,947 278,204 27,699 305,955 275,860 24,324 300,184 154,952 13,844 168,747 93,693 5,457 99,145 2,072,210 177,770 2,249,978

(Accumulated loss) / income brought forward

- Realised income / (loss) 26,661 13,730 10,331 4,551 (3,616) 51,657
- Unrealised loss (36,668) (12,925) (11,860) (6,448) (4) (67,905)
(10,007) 805 (1,529) (1,897) (3,620) (16,248)
Accounting income available for distribution
- Relating to capital gains 73,529 18,511 16,081 11,318 5,175 124,614
- Excluding capital gains 42,924 8,383 9,772 4,423 3,902 69,404
116,453 26,894 25,853 15,741 9,077 194,018
Distribution during the period - - - - - -
Undistributed income carried forward 106,446 27,699 24,324 13,844 5,457 177,770

Undistributed income carried forward

- Realised income 45,485 12,988 10,048 4,668 53 73,242
- Unrealised lncome 60,961 14,711 14,276 9,176 5,404 104,528
106,446 27,699 24,324 13,844 5,457 177,770

Rupees Rupees Rupees Rupees Rupees

Net asset value per unit as at the beginning of the period 50.1213 50.1139 49.9586 50.0391 48.9980
Net asset value per unit as at the end of the period 54.7556 54.9435 54.6668 55.1872 53.9359

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al-Meezan Investment Management Limited

(Management Company)

Chief Executive Chief financial officer Director

MEEZAN STRATEGIC ALLOCATION FUND - II
STATEMENT OF MOVEMENT IN UNITHOLDERS’ FUND (UNAUDITED)
FOR THE SIX MONTHS PERIOD AND QUARTER ENDED DECEMBER 31, 2019
Six months period ended December Six months period ended For the period from July 10, 2018 For the period from September 26, For the period from December 17, Six months period ended December
MCPP-IV MCPP-V MCPP-VI MCPP-VII MCPP-VIII Total
---------------- (Rupees in '000) -------------------------------- (Rupees in '000) ----------------
---------------- (Rupees in '000) ----------------
---------------- (Rupees in '000) ----------------
---------------- (Rupees in '000) -------------------------------- (Rupees in '000) ----------------
Undistributed
Accumulated Capital income / Capital Undistri- Capital Accumulated Capital Undistri- Accumulated
Capital Value Total Total Total Total Total Capital Value Total
loss Value (accumulated Value buted income Value loss Value buted income loss
loss)

Net assets at the beginning of the period 2,135,335 (19,965) 2,115,370 733,520 (152) 733,368 - - - - - - - - - 2,868,855 (20,117) 2,848,738
Issuance of units:
MCPP-V: 1,643,879 / MCPP-VI: 13,205,775 / MCPP-VII:
7,646,584 units MCPP-VIII: 465,913 units
- Capital value (at net asset value per unit at
the beginning of the period) - - - 82,243 - 82,243 660,289 - 660,289 382,329 - 382,329 23,296 - 23,296 1,148,157 - 1,148,157
- Element of (loss) / income - - - (417) - (417) 3,028 - 3,028 4,471 - 4,471 9 - 9 7,091 - 7,091
Total proceeds on issuance of units - - - 81,826 - 81,826 663,317 - 663,317 386,800 - 386,800 23,305 - 23,305 1,155,248 - 1,155,248
Redemption of units:
MCPP-IV: 4,197,829 / MCPP-V: 3,220,426 /
MCPP-VI: 1,430,794 MCPP-VII: 7,80,277 units
- Capital value (at net asset value per unit at
the beginning of the period) 209,050 - 209,050 161,117 - 161,117 71,540 - 71,540 39,014 - 39,014 - - - 480,721 - 480,721
- Element of loss (8) 1,188 1,180 (207) 838 631 291 436 727 474 - 474 - - - 550 2,462 3,012
Total payments on redemption of units 209,042 1,188 210,230 160,910 838 161,748 71,831 436 72,267 39,488 - 39,488 - - - 481,271 2,462 483,733
Total comprehensive income / (loss) for the period 16,046 16,046 4,139 4,139 2,674 2,674 (1,442) (1,442) 17 17 - 21,434 21,434
Distribution during the period - - - - - - - - - - - - -
Net income / (loss) for the period less distribution 16,046 16,046 4,139 4,139 2,674 2,674 (1,442) (1,442) 17 17 - 21,434 21,434
Net assets at the end of the period 1,926,293 (5,107) 1,921,186 654,436 3,149 657,585 591,486 2,238 593,724 347,312 (1,442) 345,870 23,305 17 23,322 3,542,832 (1,145) 3,541,687

Accumulated loss brought forward

- Realised loss (24,191) (857) - - - (25,048)
- Unrealised income 4,226 705 - - - 4,931
(19,965) (152) - - - (20,117)
Accounting income available for distribution
- Relating to capital gains 5,592 3,898 3,245 - 13 12,748
- Excluding capital gains 9,266 (597) (1,007) - 4 7,666
14,858 3,301 2,238 - 17 20,414
Net loss for the period after taxation - - - (1,442) - (1,442)
Distribution during the period - - - - - -
(Accumulated loss) / undistributed income carried forward (5,107) 3,149 2,238 (1,442) 17 (1,145)

(Accumulated loss) / undistributed income carried forward

- Realised (loss) / income (25,117) (5,612) (889) 874 4 (30,740)
- Unrealised income / (loss) 20,010 8,761 3,127 (2,316) 13 29,595
(5,107) 3,149 2,238 (1,442) 17 (1,145)

Rupees Rupees Rupees Rupees Rupees

Net asset value per unit as at the beginning of the period 49.7996 50.0298 - - -
Net asset value per unit as at the end of the period 50.1880 50.2661 50.4225 50.3721 50.0567

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al-Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN STRATEGIC ALLOCATION FUND - II
CONDENSED INTERIM CASH FLOW STATEMENT (UNAUDITED)
FOR THE PERIOD ENDED DECEMBER 31, 2019

Six months period ended December 31, 2019

MCPP-IV MCPP-V MCPP-VI MCPP-VII MCPP-VIII Total
--------------------------------------------(Rupees in '000)---------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES

Net income for the period before taxation 119,488 32,074 27,272 17,318 9,455 205,607

Adjustments for:
Net unrealised appreciation on re-measurement
of investments 'at fair value through profit or loss' (60,961) (14,711) (14,276) (9,176) (5,404) (104,528)
58,527 17,363 12,996 8,142 4,051 101,079
Decrease in assets
Investments - net 251,078 183,006 97,829 44,939 38,404 615,256
Receivable against sale of investments (280) (1,610) (110) - - (2,000)
Advances, deposits and other receivables (252) (137) (78) (36) (58) (561)
250,546 181,259 97,641 44,903 38,346 612,695
Increase in liabilities

Payable to Al Meezan Investment Management

Limited - Management Company (15) (14) (16) (2) (1) (48)
Payable to Central Depository Company of
Pakistan Limited - Trustee (30) (16) (16) (5) (3) (70)
Payable to Securities and Exchange Commission
of Pakistan (1,660) (586) (433) (157) (45) (2,881)
Payable against purchase of investments 991 225 215 113 60 1,604
Accrued expenses and other liabilities 2,525 1,498 807 438 203 5,471
1,811 1,107 557 387 214 4,076

Net cash generated from operating activities 310,884 199,729 111,194 53,432 42,611 717,850

CASH FLOWS FROM FINANCING ACTIVITIES

Payments against redemption and conversion of units (310,157) (198,322) (110,941) (55,983) (40,933) (716,336)
Net cash used in financing activities (310,157) (198,322) (110,941) (55,983) (40,933) (716,336)

Net increase / (decrease) in cash and cash

equivalents during the period 727 1,407 253 (2,551) 1,678 1,514
Cash and cash equivalents at the beginning of the period 1,876 908 1,845 2,960 2,286 9,875

Cash and cash equivalents at the end of the period 2,603 2,315 2,098 409 3,964 11,389

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN STRATEGIC ALLOCATION FUND - II
CONDENSED INTERIM CASH FLOW STATEMENT (UNAUDITED)
FOR THE PERIOD ENDED DECEMBER 31, 2019

For the period For the period For the period

from July 10, from September from December
Six months period ended
2018 to 26, 2018 to 17, 2018 to
December 31, 2018 Total
December 31, December 31, December 31,
2018 2018 2018

MCPP-IV MCPP-V MCPP-VI MCPP-VII MCPP-VIII

--------------------------------------------(Rupees in '000)---------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES

Net income / (loss) for the period before taxation 16,046 4,139 2,674 (1,442) 17 21,434

Adjustments for:
Net unrealised diminution / (appreciation) on re-measurement
of investments 'at fair value through profit or loss' (20,010) (8,761) (3,127) 2,316 (13) (29,595)
(3,964) (4,622) (453) 874 4 (8,161)
Decrease / (increase) in assets
Investments - net 223,499 (39,037) (590,039) (361,136) (11,000) (777,713)
Receivable against sale of investments - net (3,126) - - - - (3,126)
Advances, deposits and other receivables (23) 136 (6) (69) (8) 30
220,350 (38,901) (590,045) (361,205) (11,008) (780,809)
(Decrease) / increase in liabilities

Payable to Al Meezan Investment Management

Limited - Management Company (5) (9,197) 54 54 627 (8,467)
Payable to Central Depository Company of -
Pakistan Limited - Trustee (13) 13 47 27 - 74
Payable to Meezan Bank Limited - (5,913) - 1,833 - (4,080)
Payable to Securities and Exchange Commission -
of Pakistan 507 299 211 47 - 1,064
Payable against purchase of investments - net 2,601 - - - 8,000 10,601
Accrued expenses and other liabilities (6,812) (971) 103 338 10 (7,332)
(3,722) (15,769) 415 2,299 8,637 (8,140)

Net cash generated from / (used in) operating activities 212,664 (59,292) (590,083) (358,032) (2,367) (797,110)

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts against issuance and conversion of units - 84,610 663,317 386,800 23,304 1,158,031
Payments against redemption and conversion of units (207,192) (161,748) (71,202) (26,191) - (466,333)
Dividend paid - - - - -
Net cash (used in) / generated from financing activities (207,192) (77,138) 592,115 360,609 23,304 691,698

Net increase / (decrease) in cash and cash equivalents

during the period 5,472 (136,430) 2,032 2,577 20,937 (105,412)
Cash and cash equivalents at the beginning of the period 1,743 139,238 - - - 140,981

Cash and cash equivalents at the end of the period 7,215 2,808 2,032 2,577 20,937 35,569

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN STRATEGIC ALLOCATION FUND - II
NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2019

1. LEGAL STATUS AND NATURE OF BUSINESS

1.1 Meezan Strategic Allocation Fund - II (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 January 15, 2018 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). The Fund is registered as a Notified entity under Non-Banking Finance Companies and Notified
Entities Regulations, 2008, (NBFC Regulations) issued through S.R.O.1203(I)/2008 on October 10, 2016. 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 Regulations) 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 enable the unit holders to participate in a diversified portfolio of equity schemes and fixed
income / money market schemes, which are Shariah compliant. Under the Trust Deed, all the conducts and acts of the Fund
are based on Shariah guidelines. 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 Fund of Funds Scheme. Units are offered for public subscription on a
continuous basis till the end of the subscription period. However, the subscription in units may be reopened for fresh
issuance by the Management Company with prior approval of the Commission after intimation to the Trustee and by
providing notice to investors in order to protect the interest of the unit holders. The units of the plan are transferable and can
be redeemed by surrendering them to the Fund.

1.4 Title to the assets of the Fund are held in the name of CDC as the Trustee of the Fund. The Fund's property comprises of
different types of allocation plans which are accounted for and maintained separately in the books of accounts and
collectively constitute the Fund's property.

1.5 The Management Company has been assigned a quality rating of AM1 by VIS Credit Rating Company Limited dated
December 31, 2019 (2018: AM1 dated December 28, 2018) and by PACRA dated December 28, 2019. The rating reflects
the Company’s experienced management team, structured investment process and sound quality of systems and
processes.

1.6 The Fund is an open-end Shariah compliant Fund of Funds Scheme that aims to generate returns on investment as per
allocation plans (sub funds) namely Meezan Capital Preservation Plan-IV (MCPP-IV), Meezan Capital Preservation Plan-V
(MCPP-V), Meezan Capital Preservation Plan-VI (MCPP-VI), Meezan Capital Preservation Plan-VII (MCPP-VII) and
Meezan Capital Preservation Plan-VIII (MCPP-VIII) by investing in Shariah compliant fixed income / money market and
equity mutual funds in line with the risk tolerance of the investor. Investors of the Fund may hold different types of allocation
plans and may invest in any one or more of the available allocation plans. The management may also invest in other
Collective Investments Schemes available to it with prior approval of SECP.

Meezan Capital Low risk - High return through asset allocation

Preservation Plan-IV This allocation plan commenced its operations from March 06, 2018 and can invest its portfolio between the
(MCPP-IV) Equity asset classes / Schemes and Fixed Income or Money Market asset classes / Schemes based on the
macroeconomic view and outlook of such asset classes up to 100 percent. The initial maturity of this plan is two
and a half years from the close of the subscription period. Units shall be subject to front end load.
Meezan Capital Low risk - High return through asset allocation
Preservation Plan-V This allocation plan commenced its operations from May 04, 2018 and can invest its portfolio between the Equity
(MCPP-V) asset classes / Schemes and Fixed Income or Money Market asset classes / Schemes based on the
macroeconomic view and outlook of such asset classes up to 100 percent. The initial maturity of this plan is two
and a half years from the close of the subscription period. Units shall be subject to front end load.
Meezan Capital Low risk - High return through asset allocation
Preservation Plan-VI This allocation plan commenced its operations from July 10, 2018 and can invest its portfolio between the Equity
(MCPP-VI) asset classes / Schemes and Fixed Income or Money Market asset classes / Schemes based on the
macroeconomic view and outlook of such asset classes up to 100 percent. The initial maturity of this plan is two
and a half years from the close of the subscription period. Units shall be subject to front end load.
Meezan Capital Low risk - High return through asset allocation
Preservation Plan-VII This allocation plan commenced its operations from September 26, 2018 and can invest its portfolio between the
(MCPP-VII) Equity asset classes / Schemes and Fixed Income or Money Market asset classes / Schemes based on the
macroeconomic view and outlook of such asset classes up to 100 percent. The initial maturity of this plan is two
and a half years from the close of the subscription period. Units shall be subject to front end load.
Meezan Capital Low risk - High return through asset allocation
Preservation Plan-VIII This allocation plan commenced its operations from December 17, 2018 and can invest its portfolio between the
(MCPP-VIII) Equity asset classes / Schemes and Fixed Income or Money Market asset classes / Schemes based on the
macroeconomic view and outlook of such asset classes up to 100 percent. The initial maturity of this plan is two
and a half years from the close of the subscription period. Units shall be subject to front end load.
 2

Each allocation plan announces separate Net Asset Values which ranks Pari Passu according to the number of units of the
respective allocation plans. The books and records of each plan have been maintained separately.

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 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.

3. BASIS OF PREPARATION

3.1 STATEMENT OF COMPLIANCE

These condensed interim 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 Accounting Standard (IAS) 34, Interim Financial Reporting, 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.

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 'International
Accounting Standard (IAS) 34, Interim Financial Reporting, 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.

The disclosures made in these condensed interim financial statements have, however, been limited based on the
requirements of the International Accounting Standard 34: 'Interim Financial Reporting'. These condensed interim financial
statements do not include all the information and disclosures required in a full set of financial statements and should be read
in conjunction with the annual published audited financial statements of the Fund for the year ended June 30, 2019.

These condensed interim financial statements are unaudited. However, a limited scope review has been performed by the
statutory auditors. In compliance with Schedule V of the NBFC Regulations, the directors of the Management Company
declare that these condensed interim financial statements give a true and fair view of the state of affairs of the Fund as at
December 31, 2019.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, JUDGMENTS AND RISK

MANAGEMENT

The accounting policies adopted and the methods of computation of balances used in the preparation of these condensed
interim financial statements are the same as those applied in the preparation of the annual financial statements of the Fund
for the year ended June 30, 2019.

The preparation of the condensed interim financial statements in conformity with accounting and reporting standards as
applicable in Pakistan requires management to make estimates, assumptions and use judgments that affect the application
of policies and reported amounts of assets, liabilities, income and expenses. Estimates, assumptions and judgments are
continually evaluated and are based on historical experience and other factors, including reasonable expectations of future
events. Revisions to accounting estimates are recognised prospectively commencing from the period of revision. In
preparing the condensed interim financial statements, the significant judgments made by management in applying the
Fund’s accounting policies and the key sources of estimation and uncertainty were the same as those applied to the
financial statements as at and for the year ended June 30, 2019. The Fund’s financial risk management objectives and
policies are consistent with those disclosed in the annual financial statements of the Fund for the year ended June 30, 2019.
 3

Standards and amendments to published accounting and reporting standards that are effective in the current
period

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, 2019. However, these do not have any significant impact on the Fund's
operations and, therefore, have not been detailed in these condensed interim financial statements.

Standards, interpretations and amendments to published accounting and reporting standards that are not yet
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, 2020

- IAS 8 - 'Accounting policies, change in accounting
estimates and errors' (amendment) January 1, 2020

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 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, 2020. However, these do not have any significant impact on
the Fund's operations and, therefore, have not been detailed in these condensed interim financial statements.

5. BALANCES WITH BANKS

Note December 31, 2019 (Unaudited)
MCPP-IV MCPP-V MCPP-VI MCPP-VII MCPP-VIII Total
--------------------- (Rupees in '000) ----------------------

Saving accounts 5.1 2,593 2,305 2,098 409 3,964 11,369

Current accounts 10 10 - - - 20
2,603 2,315 2,098 409 3,964 11,389

June 30, 2019 (Audited)

MCPP-IV MCPP-V MCPP-VI MCPP-VII MCPP-VIII Total
--------------------- (Rupees in '000) ----------------------

Saving accounts 5.1 1,866 908 1,845 2,960 2,286 9,865

Current accounts 10 - - - - 10
1,876 908 1,845 2,960 2,286 9,875

5.1 The balances in savings accounts have an expected profit which ranges from 7.22% to 11.50% (June 30, 2019 6.30% to
11.85%) per annum.

6. INVESTMENTS
December 31, 2019 (Unaudited)
Note MCPP-IV MCPP-V MCPP-VI MCPP-VII MCPP-VIII Total
--------------------- (Rupees in '000) ----------------------
Investments - 'at fair value
through profit or loss' 6.1 1,378,524 305,814 299,270 168,948 95,551 2,248,107

June 30, 2019 (Audited)

MCPP-IV MCPP-V MCPP-VI MCPP-VII MCPP-VIII Total
--------------------- (Rupees in '000) ----------------------
Investments - 'at fair value
through profit or loss' 1,568,641 474,109 382,823 204,711 128,551 2,758,835
 4

6.1 Investments - 'at fair value through profit or loss' - Units of mutual funds

Percentage in relation to
Unrealised
Carrying Market Market
Purchases Redemption As at appreciatio Total
As at July 1, value as at value as at value on
during the s during the December n as at market
Name of investee funds 2019 December December the basis of
period period 31, 2019 December value of
31, 2019 31, 2019 Net Assets
31, 2019 investments
of the Fund
----------------------- (Number of units) ---------------------- -------------------- (Rupees in '000) -------------------
--------------- (Percentage) ---------------

Meezan Capital Preservation Plan - IV

Meezan Dedicated Equity Fund 10,044,192 6,154,962 4,896,533 11,302,621 416,864 477,825 60,961 34.73 34.66
Meezan Cash Fund - 25,330,703 25,330,703 - - - - - -
Meezan Sovereign Fund 17,633,059 - 17,633,059 - - - - - -
Meezan Rozana Amdani Fund 6,081,739 26,465,360 14,533,116 18,013,982 900,699 900,699 - 65.46 65.34
1,317,563 1,378,524 60,961 100.19 100
Meezan Capital Preservation Plan - V
Meezan Dedicated Equity Fund 3,081,261 924,174 1,564,049 2,441,387 88,500 103,211 14,711 33.73 33.75
Meezan Cash Fund - 7,369,913 7,369,913 - - - - - -
Meezan Sovereign Fund 5,140,343 - 5,140,343 - - - - - -
Meezan Rozana Amdani Fund 2,000,572 7,424,174 5,372,680 4,052,066 202,603 202,603 - 66.22 66.25
291,103 305,814 14,711 99.95 100
Meezan Capital Preservation Plan - VI
Meezan Dedicated Equity Fund 2,745,310 746,443 1,041,621 2,450,132 89,305 103,581 14,276 34.51 34.61
Meezan Cash Fund - 5,855,373 5,855,373 - - - - - -
Meezan Sovereign Fund 4,162,470 - 4,162,470 - - - - - -
Meezan Rozana Amdani Fund 1,420,406 6,172,672 3,679,302 3,913,777 195,689 195,689 - 65.19 65.39
284,994 299,270 14,276 99.70 100
Meezan Capital Preservation Plan - VII
Meezan Dedicated Equity Fund 1,477,397 562,311 481,731 1,557,977 56,688 65,864 9,176 39.03 38.98
Meezan Cash Fund - 3,058,517 3,058,517 - - - - - -
Meezan Sovereign Fund 2,218,732 - 2,218,732 - - - - - -
Meezan Rozana Amdani Fund 760,217 3,099,097 1,797,639 2,061,675 103,084 103,084 - 61.09 61.02
159,772 168,948 9,176 100.12 100
Meezan Capital Preservation Plan - VIII
Meezan Dedicated Equity Fund 518,566 2,612,441 2,161,102 969,905 35,600 41,003 5,403 41.36 42.91
Meezan Cash Fund - 4,124,642 4,124,642 - - - - - -
Meezan Sovereign Fund 1,692,281 - 1,692,281 - - - - - -
Meezan Rozana Amdani Fund 460,132 4,949,641 4,318,808 1,090,965 54,548 54,548 - 55.02 57.09
90,148 95,551 5,403 96.38 100
Total investments in units of
mutual funds
Meezan Dedicated Equity Fund 17,866,726 11,000,331 10,145,036 18,722,021 686,957 791,484 104,527 35.18 35.21
Meezan Cash Fund - 45,739,149 45,739,149 - - - - - -
Meezan Sovereign Fund 30,846,884 - 30,846,884 - - - - - -
Meezan Rozana Amdani Fund 10,723,066 48,110,943 29,701,544 29,132,465 1,456,623 1,456,623 - 64.74 64.79
2,143,580 2,248,107 104,527 99.92 100

7. PAYABLE TO CENTRAL DEPOSITORY COMPANY OF PAKISTAN LIMITED - TRUSTEE

The Trustee is entitled to a monthly remuneration for services rendered to the Fund under the provisions of the trust deed.
Effective from July 1, 2019, the Trustee has revised its remuneration as under:

Net Assets (Rs.) Previous Tariff Revised Tariff

Upto 1 billion 0.10% of Net Assets 0.070% per anum of Net
Above 1 billion Rs. 1 million plus 0.075% P.a of Net Assets exceeding Rs. 1 billion Assets

Accordingly, the Fund has charged Trustee Fee at the rate of 0.07% per annum during the current period.

8. PAYABLE TO THE SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN (SECP)

In accordance with the NBFC Regulations, a Collective Investment Scheme (CIS) is required to pay annual fee to the
Securities and Exchange Commission of Pakistan (SECP).

Effective from July 1, 2019, the SECP vide SRO No. 685(I)/2019 dated June 28, 2019, revised the rate of annual fee to
0.02% of net assets, applicable on all categories of CISs. Previously, the rate of annual fee applicable to fund of funds was
0.095%. Accordingly, the Fund has charged SECP Fee at the rate of 0.02% of net assets during the current period.
 5

9. CONTINGENCIES AND COMMITMENTS

There were no contingencies and commitments outstanding as at December 31, 2019 and June 30, 2019.

10. ACCRUED EXPENSES AND OTHER LIABILITIES

As at December 31, 2019 (Unaudited)

MCPP-IV MCPP-V MCPP-VI MCPP-VII MCPP-VIII Total
Note --------------------- (Rupees in '000) ----------------------
Auditors' remuneration payable 106 29 25 14 8 182
Withholding tax payable 15 - - - - 15
Shariah advisory fee payable 95 22 18 10 6 151
Printing charges payable 213 8 7 1 1 230
Provision for Sindh Workers' Welfare Fund 10.1 2,748 715 556 353 193 4,565
Capital gain tax payable 91 855 109 83 4 1,142
Other payable - - - - - -
Zakat payable 2 22 157 - 11 192
3,270 1,651 872 461 223 6,477

As at June 30, 2019 (Audited)

MCPP-IV MCPP-V MCPP-VI MCPP-VII MCPP-VIII Total
--------------------- (Rupees in '000) ----------------------
Auditors' remuneration payable 115 40 29 12 4 200
Withholding tax payable 15 - - - - 15
Shariah advisory fee payable 88 24 22 11 5 150
Printing charges payable 213 9 7 - 1 230
Provision for Sindh Workers' Welfare Fund 10.1 310 60 - - - 370
Capital gain tax payable 2 5 1 - - 8
Other payable - - - - 10 10
Zakat payable 2 15 6 - - 23
745 153 65 23 20 1,006

10.1 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 on a prudent
basis with effect from the date of enactment of the SWWF Act, 2014 (i.e. starting from May 21, 2015). The Fund has made
provision in respect of SWWF starting from March 6, 2018 (i.e. the date of commencement of operations of the Fund).

Had the provision for SWWF not been recorded in the condensed interim financial statements, the NAV per unit would have
been higher by Re 0.11, Re 0.13, Re 0.10 ,Re 0.12 and 0.10 in MCPP-IV, MCPP-V, MCPP-VI, MCPP-VII and MCPP-VIII
(June 30, 2019: Re. 0.010 and Re. 0.006 per unit for MCPP-IV and MCPP-V) respectively.

11. TRANSACTIONS WITH CONNECTED PERSONS / RELATED PARTIES

Connected persons include Al Meezan Investment Management Limited being the Management Company, Central
Depository Company of Pakistan Limited being the Trustee, Meezan Bank Limited being the holding company of the
Management Company, Directors and Executives of the Management Company, other funds under the common
management of 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
unitholders holding 10 percent or more of the Fund's net assets.

Transactions with connected persons / related parties are in the normal course of business, at contracted rates and terms
determined in accordance with market rates.

Remuneration payable to the Management Company and the Trustee is determined in accordance with the provisions of the
NBFC Rules, the NBFC Regulations and the Trust Deed respectively.
 6

Detail of transactions with connected persons and balances with them are as follows:

As at December 31, 2019 (Unaudited)

Balances MCPP-IV MCPP-V MCPP-VI MCPP-VII MCPP-VIII Total

Al Meezan Investment Management

Limited - Management Company
Remuneration payable (Rs in '000) 4 1 3 4 14 26
Sindh Sales Tax on management fee (Rs in '000) 1 - - - 2 3
Allocated expenses (Rs in '000) 117 29 26 14 8 194

Meezan Bank Limited

Bank balance (Rs in '000) 2,593 2,305 2,098 409 3,964 11,369
Profit receivable (Rs in '000) 17 57 27 8 39 148

Central Depository Company of Pakistan

Limited - Trustee
Trustee fee payable (Rs. in '000) 82 21 18 11 6 138
Sindh Sales Tax on trustee fee payable (Rs. in '000) 11 3 2 1 1 18

Directors and Executives of the

Management Company
Investment (Rs in '000) 5,463 - - - - 5,463
Investment (Units) 99,772 - - - - 99,772

Meezan Dedicated Equity Fund

Investment (Rs in '000) 477,825 103,211 103,581 65,864 41,003 791,484
Investment (Units) 11,302,621 2,441,387 2,450,132 1,557,977 969,905 18,722,021

Meezan Rozana Amdani Fund

Investment (Rs in '000) 900,699 202,603 195,689 103,084 54,548 1,456,623
Investment (Units) 18,013,982 4,052,066 3,913,777 2,061,675 1,090,965 29,132,465

Unitholders holding 10% or more units of the Fund

Investment (Rs in '000) 179,095 - - 54,476 - 233,572
Investment (Units) 3,270,818 - - 987,119 - 4,257,936

Balances As at June 30, 2019 (Audited)

MCPP-IV MCPP-V MCPP-VI MCPP-VII MCPP-VIII Total
Al Meezan Investment Management Limited
- Management Company
Remuneration payable (Rs in '000) 5 1 5 3 12 26
Sindh Sales Tax on management fee (Rs in '000) 1 - 1 - 2 4
Allocated expenses (Rs in '000) 131 43 39 17 11 241

Meezan Bank Limited

Bank balance (Rs in '000) 1876 908 1,845 2,960 2,286 9,875
Profit receivable (Rs in '000) 52 5 21 12 7 97

Central Depository Company of

Pakistan Limited - Trustee
Trustee fee payable (Rs in '000) 109 36 32 15 9 201
Sindh Sales Tax on trustee fee payable (Rs in '000) 14 4 4 2 1 25

Directors and Executives of the

Management Company
Investment (Rs in '000) 5,001 - - - - 5,001
Investment (Units) 99,772 - - - - 99,772

Meezan Dedicated Equity Fund

Investment (Rs in '000) 356,705 109,427 97,496 52,468 18,416 634,512
Investment (Units) 10,044,192 3,081,261 2,745,310 1,477,397 518,566 17,866,726

Meezan Sovereign Fund

Investment (Rs in '000) 907,849 264,653 214,307 114,233 87,128 1,588,170
Investment (Units) 17,633,059 5,140,343 4,162,470 2,218,732 1,692,281 30,846,884
 7

Balances As at June 30, 2019 (Audited)

MCPP-IV MCPP-V MCPP-VI MCPP-VII MCPP-VIII Total
Meezan Rozana Amdani Fund
Investment (Rs in '000) 304,087 100,029 71,020 38,010 23,007 536,153
Investment (Units) 6,081,739 2,000,572 1,420,406 760,217 460,132 10,723,066

Unitholders holding 10% or more units

of the Fund
Investment (Rs in '000) 163,938 - - 29,598 - 193,536
Investment (Units) 3,270,818 - - 591,506 - 3,862,324

For the six month period ended December 31, 2019 (Unaudited)
MCPP-IV MCPP-V MCPP-VI MCPP-VII MCPP-VIII Total
-----------------------------------------(Unaudited)-----------------------------------------
Al Meezan Investment Management Limited
- Management Company
Remuneration for the period (Rs in '000) 11 6 10 9 18 54
Sindh Sales Tax on management fee (Rs in '000) 1 1 1 1 2 6
Allocated expenses (Rs in '000) 701 195 165 92 54 1,207

Meezan Bank Limited

Profit on saving account (Rs in '000) 209 103 95 60 177 644

Central Depository Company of Pakistan

Limited - Trustee
Trustee fee (Rs in '000) 491 137 115 65 38 846
Sindh Sales Tax on trustee fee (Rs in '000) 64 18 15 8 5 110

Meezan Dedicated Equity Fund

Invested during the period (Rs. in '000) 235,000 - - - 43,000 278,000
Invested during the period (Units) 6,154,962 924,174 746,443 562,311 2,612,441 11,000,331
Redeemed during the period (Rs. in '000) 172,090 24,510 22,060 6,830 59,579 285,069
Redeemed during the period (Units) 4,896,533 1,564,049 1,041,621 481,731 2,161,102 10,145,036

Meezan Cash Fund

Invested during the period (Rs. in '000) 1,281,552 372,855 296,207 154,708 209,083 2,314,406
Invested during the period (Units) 25,330,703 7,369,913 5,855,373 3,058,517 4,124,642 45,739,149
Redeemed during the period (Rs. in '000) 1,295,575 375,734 298,558 155,937 209,717 2,335,520
Redeemed during the period (Units) 25,330,703 7,369,913 5,855,373 3,058,517 4,124,642 45,739,149

Meezan Sovereign Fund

Invested during the period (Rs. in '000) - - - - - -
Invested during the period (Units) - - - - - -
Redeemed during the period (Rs. in '000) 909,145 265,031 214,613 114,396 87,252 1,590,438
Redeemed during the period (Units) 17,633,059 5,140,343 4,162,470 2,218,732 1,692,281 30,846,884

Meezan Rozana Amdani Fund

Invested during the period (Rs. in '000) 1,323,268 371,209 308,634 154,955 247,482 2,405,547
Invested during the period (Units) 26,465,360 7,424,174 6,172,672 3,099,097 4,949,641 48,110,943
Redeemed during the period (Rs. in '000) 726,656 268,634 183,965 89,882 215,940 1,485,077
Redeemed during the period (Units) 14,533,116 5,372,680 3,679,302 1,797,639 4,318,808 29,701,544
Dividend received during the period (Rs. in '000) 49,932 14,607 12,075 6,530 4,448 87,592
Dividend received during the period (Units) 998,649 292,150 241,504 130,598 88,956 1,751,857

For the period For the period For the period

from July 10, from September from December
For the Period ended December
2018 to 26, 2018 to 17, 2018 to
31, 2018
December 31, December 31, December 31,
2018 2018 2018
MCPP - IV MCPP - V MCPP - VI MCPP - VII MCPP - VIII Total
-----------------------------------------(Unaudited)-----------------------------------------
Al Meezan Investment Management
Limited - Management Company
Remuneration for the quarter / period 58 65 126 60 3 312
Sindh Sales Tax on management fee 8 9 16 8 - 41
Allocated expenses 1,021 368 222 50 - 1,661
 8
For the period For the period For the period
from July 10, from September from December
For the Period ended December
2018 to 26, 2018 to 17, 2018 to
31, 2018
December 31, December 31, December 31,
2018 2018 2018
MCPP - IV MCPP - V MCPP - VI MCPP - VII MCPP - VIII Total
-----------------------------------------(Unaudited)-----------------------------------------
Meezan Bank Limited
Profit on saving account 190 186 329 223 9 937

Central Depository Company of Pakistan

Limited - Trustee
Trustee fee (Rs in '000) 844 304 183 41 - 1,372
Sindh Sales Tax on trustee fee (Rs in '000) 110 40 24 5 - 179

Meezan Dedicated Equity Fund

Invested during the period / quarter (Rs. in '000) 790,800 245,600 184,000 98,000 - 1,318,400
Invested during the period / quarter(Units) 16,971,845 5,325,304 3,942,601 2,187,362 - 28,427,112
Redeemed during the period / quarter (Rs. in '000) 892,312 251,518 92,284 15,092 - 1,251,206
Redeemed during the period / quarter (Units) 19,214,570 5,481,406 1,983,046 318,471 - 26,997,493

Meezan Cash Fund

Invested during the quarter / period (Rs. in '000) 929,605 441,001 727,000 393,500 11,000 2,502,106
Invested during the quarter / period (Units) 18,231,673 8,681,998 14,282,003 7,633,163 211,552 49,040,390
Redeemed during the qurter / period (Rs. in '000) 977,640 371,770 228,796 116,160 - 1,694,366
Redeemed during the qurter / period (Units) 19,110,914 7,275,649 4,470,669 2,250,089 - 33,107,321
Dividend Received during the quarter /
period (Rs. in '000) 13,834 1,360 - - - 15,194
Dividend Received during the quarter /
period (Units) 274,308 26,959 - - - 301,267
Refund of Capital during the quarter /
period (Rs. in '000) 59,534 19,413 - - - 78,947
Refund of Capital during the quarter /
period (Units) 1,180,484 384,939 - - - 1,565,423

12. ALLOCATED EXPENSES

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).

Until June 19, 2019 there was a maximum cap of 0.1% of the average annual net assets of the scheme or actual whichever
is less, for allocation of such expense to the Fund. However, the SECP vide its SRO 639 dated June 20, 2019 removed the
maximum cap of 0.1%.

The management company based on its own discretion has currently fixed a maximum capping of 0.1% of the average
annual net assets of the scheme for allocation of such expenses to the Fund.

13. TOTAL EXPENSE RATIO

The Total Expense Ratio (TER) of the Fund for the period ended December 31, 2019 are;

As at December 31, 2019

MCPP-IV MCPP-V MCPP-VI MCPP-VII MCPP-VIII
Total Expense ratio (including government levies) 0.60% 0.59% 0.60% 0.64% 0.64%
Government levies, Sindh Workers' Fund and SECP Fee 0.38% 0.37% 0.37% 0.41% 0.39%

As at June 30, 2019

MCPP-IV MCPP-V MCPP-VI MCPP-VII MCPP-VIII
Total Expense ratio (including government levies) 0.33% 0.33% 0.33% 0.27% 0.24%
Government levies 0.12% 0.12% 0.11% 0.08% 0.06%

This ratio is within the maximum limit of 2.5% prescribed under the NBFC Regulations for a collective investment scheme
categorised as a Fund of Fund Scheme.
 9

14. TAXATION

The Fund's income is exempt from Income Tax as per clause (99) of part I of the Second Schedule to the Income Tax
Ordinance, 2001 subject to the condition that not less than 90 percent of the accounting income for the year as reduced by
capital gains, whether realised or unrealised, is distributed amongst the unit holders. Furthermore, as per regulation 63 of
the Non-Banking Finance Companies and Notified Entities Regulations, 2008, the Fund is required to distribute 90 percent
of the net accounting income other than capital gains to the unit holders. The Fund has not recorded any tax liability in
respect of income relating to the current period as the Management Company intends to distribute at least 90 percent of the
Fund's accounting income for the year ending June 30, 2020 as reduced by capital gains (whether realised or unrealised) to
its unit holders.

The Fund is also exempt from the provisions of section 113 (minimum tax) under clause 11A of Part IV to the Second
Schedule of the Income Tax Ordinance, 2001. Accordingly Supertax introduced in Finance Act, 2015 is also not applicable
on funds (Section 4B of Income Tax Ordinance, 2001).

15. FAIR VALUES OF FINANCIAL INSTRUMENTS

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.

- Level 1: Fair value measurements using quoted price (unadjusted) in an active market for identical assets or liabilities.

- Level 2: Fair value measurements using inputs other than quoted prices included within level 1 that are observable for
the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
- Level 3: Fair value measurement using inputs for the asset or liability that are not based on observable market data
(i.e. unobservable inputs).

As at December 31, 2019 and June 30, 2019, the Fund held the following financial instruments measured at fair value:

As at December 31, 2019

ASSETS Level 1 Level 2 Level 3 Total
--------------------------------------- (Rupees in '000) ---------------------------------------
Financial assets 'at fair value through profit or loss'
Units of mutual funds - 2,248,107 - 2,248,107

As at June 30, 2019

ASSETS Level 1 Level 2 Level 3 Total
--------------------------------------- (Rupees in '000) ---------------------------------------
Financial assets 'at fair value through profit or loss'
Units of mutual funds - 2,758,835 - 2,758,835

16. GENERAL

16.1 Figures have been rounded off to the nearest thousand rupees.

16.2 Corresponding figures have been reclassified and rearranged in these condensed interim financial statements, wherever
necessary, for the purpose of better presentation. No significant rearrangements or reclassifications were made in these

17. DATE OF AUTHORISATION FOR ISSUE

February 10, 2020
These condensed interim financial statements were authorised for issue on ____________ by the Board of Directors of the
Management Company.

For Al Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
THE CITY OF ANCIENT
HISTORY AND RICH CULTURE

Meezan
Strategic Allocation Fund-III

MEEZAN STRATEGIC
ALLOCATION FUND-III (MSAF-III)
Meezan Strategic Allocation Fund-III is a Shariah compliant scheme
which aims to earn potentially high returns through investment as
per respective Allocation Plans by investing in Shariah Compliant
Fixed Income/Money Market Collective Investment Schemes and
Equity based Collective Investment Schemes.

IQBAL MANZIL
(SIALKOT)
THE CITY OF ANCIENT
HISTORY AND RICH CULTURE

Meezan
Strategic Allocation Fund-III

MEEZAN STRATEGIC
ALLOCATION FUND-III (MSAF-III)
Meezan Strategic Allocation Fund-III is a Shariah compliant scheme
which aims to earn potentially high returns through investment as
per respective Allocation Plans by investing in Shariah Compliant
Fixed Income/Money Market Collective Investment Schemes and
Equity based Collective Investment Schemes.

IQBAL MANZIL
(SIALKOT)
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. Mohammad Shoaib, CFA Chief Executive Officer
Mr. Muhammad Abdullah Ahmed Nominee Director - MBL
Mr. Mohammad Furquan R Kidwai Independent Director
Mr. ljaz Farooq Nominee Director - MBL
Mr. Moin M. Fudda Independent Director
Ms. Saima Kamila Khan Independent Director
Mr. Arshad Majeed Nominee Director - MBL
Mr. Naeem Abdul Sattar Nominee Director - PKIC
Syed Amir Ali Zaidi Nominee Director – PKIC

CFO & COMPANY SECRETARY OF THE MANAGEMENT COMPANY

Syed Owais Wasti

AUDIT COMMITTEE
Mr. Moin M. Fudda Chairman
Mr. Arshad Majeed Member
Mr. Naeem Abdul Sattar Member

RISK MANAGEMENT COMMITTEE

Mr. Muhammad Abdullah Ahmed Chairman
Syed Amir Ali Zaidi Member
Mr. Naeem Abdul Sattar Member

HUMAN RESOURSE & REMUNERATION COMMITTEE

Mr. Moin M. Fudda Chairman
Mr. Ariful Islam Member
Mr. Naeem Abdul Sattar 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
Bank Al Habib Limited - Islamic Banking
Dubai Islamic Bank
Meezan Bank Limited
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:
TRANSFER AGENT
Meezan Bank Limited
Meezan House
C-25, Estate Avenue, SITE, Karachi.
Phone: 38103538 Fax: 36406017
Website: www.meezanbank.com

DISTRIBUTORS
Al Meezan Investment Management Limited
Meezan Bank Limited
Standard Chartered Bank (Pakistan) Limited
MEEZAN STRATEGIC ALLOCATION FUND - III
STATEMENT OF ASSETS AND LIABILITIES
AS AT DECEMBER 31, 2019

Note December 31,

June 30, 2019
2019
(Unaudited) (Audited)
MCPP-IX
------- (Rupees in '000) ------
Assets
Balances with banks 5 1,177 15,908
Investments 6 97,824 18,944
Profit accrued on balances with banks 19 26
Receivable against investments 12,740 -
Deposits and prepayments 84 -
Total assets 111,844 34,878

Liabilities
Payable to Al Meezan Investment Management Limited - Management Company 9 866
Payable to Central Depository Company of Pakistan Limited - Trustee 12 7 1
Payable to Securities and Exchange Commission of Pakistan 7 9 1
Payable against investments 12,063 -
Payable against redemption and conversions 740 -
Accrued expenses and other liabilities 9 430 80
Total liabilities 13,258 948

Net assets 98,586 33,930

Unit holders’ fund (as per statement attached) 98,586 33,930

Contingencies and commitments 8

-------(Number of units) ------

Number of units in issue 1,839,059 703,396

-------- (Rupees) -----------

Net asset value per unit 53.6070 48.2374

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al-Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN STRATEGIC ALLOCATION FUND - III
CONDENSED INTERIM INCOME STATEMENT (UNAUDITED)
FOR THE SIX MONTHS AND QUARTER ENDED DECEMBER 31, 2019

For the six For the

months quarter
period ended ended
December 31, December 31,
2019 2019
Note MCPP-IX MCPP-IX
------- (Rupees in '000) ------
Income
Realised gain on sale of investments - net 1,623 2,796
Profit on balance with banks 201 103
Dividend income 3,810 1,951
5,634 4,850

Net unrealised appreciation on re-measurement of investments -

'at fair value through profit or loss' 4,919 4,919
Total income 10,553 9,769

Expenses
Remuneration to Al Meezan Investment Management
Limited - Management Company 23 4
Sindh Sales Tax on remuneration to Management Company 3 1
Allocated expenses 11 46 25
Remuneration to Central Depository Company of
Pakistan Limited - Trustee 12 33 17
Sindh Sales Tax on remuneration of the Trustee 4 2
Annual fee to Securities and Exchange Commission
of Pakistan 7 9 5
Auditors' remuneration 59 44
Bank and settlement charges 6 6
Fees and subscription 149 81
Provision for Sindh Workers' Welfare Fund (SWWF) 204 191
Total expenses 536 376

Net income for the period before taxation 10,017 9,393

Taxation 14 - -

Net income for the period after taxation 10,017 9,393

Allocation of net income for the period

Net income for the period after taxation 10,017
Income already paid on units redeemed (411)
9,606

Accounting income available for distribution

- Relating to capital gains 6,542
- Excluding capital gains 3,064
9,606

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al-Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN STRATEGIC ALLOCATION FUND - III
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
FOR THE SIX MONTHS AND QUARTER ENDED DECEMBER 31, 2019

For the six For the

months quarter
period ended ended
December 31, December 31,
2019 2019
MCPP-IX MCPP-IX
------- (Rupees in '000) ------

Net income for the period after taxation 10,017 9,393

Other comprehensive income for the period - -

Total comprehensive income for the period 10,017 9,393

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al-Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN STRATEGIC ALLOCATION FUND - III
CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS’ FUND (UNAUDITED)
FOR THE SIX MONTHS ENDED DECEMBER 31, 2019

For the six months period ended December 31,

2019
MCPP-IX
(Accumulated
loss) /
Capital Value Total
Undistributed
income
---------------- (Rupees in '000) ----------------

Net assets at the beginning of the period 34,246 (316) 33,930

Issuance of units:
Issuance of 1,816,116 units
- Capital value (at net asset value per unit at the beginning of the period) 87,605 - 87,605
- Element of income 279 - 279
Total proceeds on issuance of units 87,884 - 87,884

Redemption of units:
Redemption of 680,453 units
- Capital value (at net asset value per unit at the beginning of the period) 32,824 - 32,824
- Element of loss 10 411 421
Total payments on redemption of units 32,834 411 33,245

Total comprehensive income for the period - 10,017 10,017

Net assets at the end of the period 89,296 9,290 98,586

Accumulated loss brought forward

- Realised loss (105)
- Unrealised income (211)
(316)
Accounting income available for distribution
- Relating to capital gains 6,542
- Excluding capital gains 3,064
9,606
Undistributed income carried forward 9,290

Undistributed income carried forward

- Realised income 4,371
- Unrealised income 4,919
9,290

Rupees
Net asset value per unit as at the beginning of the period 48.2374
Net asset value per unit as at the end of the period 53.6070

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al-Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN STRATEGIC ALLOCATION FUND - III
CONDENSED INTERIM CASH FLOW STATEMENT (UNAUDITED)
FOR THE SIX MONTHS ENDED DECEMBER 31, 2019

For the six

months
period ended
December 31,
2019
MCPP-IX
Rupees in '000
CASH FLOWS FROM OPERATING ACTIVITIES

Net income for the period before taxation 10,017

10,017
Adjustments for:
Net unrealised appreciation on re-measurement of investments -
'at fair value through profit or loss' (4,919)
5,098

Decrease in assets
Investments - net (73,961)
Profit accrued on balances with banks 7
Receivable against investments (12,740)
Deposits and prepayments (84)
(86,778)
Increase in liabilities
Payable to Al Meezan Investment Management Limited - Management Company (857)
Payable to Central Depository Company of Pakistan Limited - Trustee 6
Payable to Securities and Exchange Commission of Pakistan 8
Payable against investments 12,063
Accrued expenses and other liabilities 350
11,570

Net cash used in operating activities (70,110)

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts against issuance and conversion of units 87,884

Payments against redemption and conversion of units (32,505)
Net cash generated from financing activities 55,379

Net decrease in cash and cash equivalents (14,731)

Cash and cash equivalents at the beginning of the period 15,908

Cash and cash equivalents at the end of the period 1,177

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

For Al-Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
MEEZAN STRATEGIC ALLOCATION FUND - III
NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
FOR THE SIX MONTHS ENDED DECEMBER 31, 2019

1. LEGAL STATUS AND NATURE OF BUSINESS

1.1 Meezan Strategic Allocation Fund - III (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 January 24, 2019 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). The Fund is registered as a Notified entity under Non-Banking Finance
Companies and Notified Entities Regulations, 2008, (NBFC Regulations) issued through S.R.O.1203(I)/2008 on
October 10, 2016. 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 Regulations) 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 enable the unitholders to participate in a diversified portfolio of equity schemes and fixed
income / money market schemes, which are Shariah compliant. Under the Trust Deed, all the conducts and acts of the
Fund are based on Shariah guidelines. 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 Fund of Funds Scheme. Units are offered for public subscription on a
continuous basis till the end of the subscription period. However, the subscription in units may be reopened for fresh
issuance by the Management Company with prior approval of the Commission after intimation to the Trustee and by
providing notice to investors in order to protect the interest of the unitholders. The units of the plan are transferable and
can be redeemed by surrendering them to the Fund.

1.4 Title to the assets of the Fund are held in the name of CDC as the Trustee of the Fund. The Fund's property comprises
of different types of allocation plans which are accounted for and maintained separately in the books of accounts and
collectively constitute the Fund's property.

1.5 The Management Company has been assigned a quality rating of AM1 by VIS Credit Rating Company Limited dated
December 31, 2019 (2018: AM1 dated December 28, 2018) and by PACRA dated December 28, 2019. The rating
reflects the Company’s experienced management team, structured investment process and sound quality of systems
and processes.

1.6 The fund generates returns on investment as per allocation plan (sub fund) namely Meezan Capital Preservation Plan-
IX (MCPP-IX) by investing in Shariah compliant fixed income / money market and equity mutual funds in line with the
risk tolerance of the investor. The management may also invest in other Collective Investments Schemes available to
it with prior approval of the SECP.

1.7 A brief description of the plan is as follows:

Meezan Capital Preservation Plan-IX Low risk - High return through asset allocation:
(MCPP-IX) This allocation plan commenced its operations from May 14, 2019 and can
invest its portfolio between the Equity asset classes / Schemes and Fixed
Income or Money Market asset classes / Schemes based on the
macroeconomic view and outlook of such asset classes up to 100 percent.
The initial maturity of this plan is two and a half years from the close of the
subscription period. Units shall be subject to front end load.

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 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.
 2

3 BASIS OF PREPARATION

3.1 STATEMENT OF COMPLIANCE

These condensed interim financial statements have been prepared in accordance with the accounting and reporting
standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards applicable
in Pakistan for interim financial reporting comprise of:

- International Accounting Standard (IAS) 34, Interim Financial Reporting, 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 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, (the NBFC Regulations) and the requirements of
the Trust Deed.

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 with the
requirements of IAS 34, 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.

The disclosures made in these condensed interim financial statements have, however, been limited based on the
requirements of the International Accounting Standard 34: 'Interim Financial Reporting'. These condensed interim
financial statements do not include all the information and disclosures required in a full set of financial statements and
should be read in conjunction with the annual published audited financial statements of the Fund for the year ended
June 30, 2019.

These condensed interim financial statements are unaudited. However, a limited scope review has been performed by
the statutory auditors. In compliance with Schedule V of the NBFC Regulations, the directors of the Management
Company declare that these condensed interim financial statements give a true and fair view of the state of affairs of
the Fund as at December 31, 2019.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, JUDGMENTS AND RISK

MANAGEMENT

4.1 The accounting policies adopted and the methods of computation of balances used in the preparation of these
condensed interim financial statements are the same as those applied in the preparation of the annual financial
statements of the Fund for the year ended June 30, 2019.

4.2 The preparation of the condensed interim financial statements in conformity with accounting and reporting standards
as applicable in Pakistan requires management to make estimates, assumptions and use judgments that affect the
application of policies and reported amounts of assets, liabilities, income and expenses. Estimates, assumptions and
judgments are continually evaluated and are based on historical experience and other factors, including reasonable
expectations of future events. Revisions to accounting estimates are recognised prospectively commencing from the
period of revision. In preparing the condensed interim financial statements, the significant judgments made by
management in applying the Fund’s accounting policies and the key sources of estimation and uncertainty were the
same as those applied to the financial statements as at and for the year ended June 30, 2019. The Fund’s financial
risk management objectives and policies are consistent with those disclosed in the annual financial statements of the
Fund for the year ended June 30, 2019.

4.3 Standards and amendments to published accounting and reporting standards that are effective in the current
period

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, 2019. However, these do not have any significant impact on the Fund's
operations and, therefore, have not been detailed in these condensed interim financial statements.

4.4 Standards, interpretations and amendments to published accounting and reporting standards that are not yet
effective

The following amendments would be effective from the dates mentioned below against the respective amendment:
 3

Effective date (accounting

Amendments periods beginning on or after)
- IAS 1 - 'Presentation of financial statements' (amendment) January 1, 2020
- IAS 8 - 'Accounting policies, change in accounting
estimates and errors' (amendment) January 1, 2020

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 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, 2020. However, these do not have any significant
impact on the Fund's operations and, therefore, have not been detailed in these condensed interim financial
statements.

Note December June 30,

31, 2019 2019
(Unaudited) (Audited)
MCPP-IX
5. BALANCES WITH BANKS -----(Rupees in '000)----

Saving accounts 5.1 1,177 15,908

5.1 The balances in savings accounts have an expected profit which ranges from 7.22% to 13.25% per annum. (June 30,
2019: 6.30% to 11.85% per annum).

Note December June 30,

31, 2019 2019
(Unaudited) (Audited)
6. INVESTMENTS MCPP-IX
-----(Rupees in '000)----
Investments - 'at fair value through profit or loss' -
units of mutual funds 6.1 97,824 18,944

6.1 Investments - 'at fair value through profit or loss' - Units of mutual funds
Percentage in relation to
Carrying Market Market
Unrealised
Purchases Sales As at value as value as value on
As at July gain as at Total market
during the during the December at at the basis
Name of investee funds 01, 2019 December value of
period period 31, 2019 December December of net
31, 2019 investments
31, 2019 31, 2019 assets of
the Fund
----------------------- (Number of units) ----------------------
-------------------- (Rupees in '000) ------------------- (Percentage)

Meezan Capital Preservation

Plan - IX
Meezan Dedicated Equity Fund 153,424 2,985,403 2,156,804 982,023 36,597 41,516 4,919 42.00% 42.11%
Meezan Cash Fund 64,627 1,474,895 1,539,522 - - - - - -
Meezan Sovereign Fund 198,820 232,743 431,562 - - - - - -
Meezan Rozana Amdani Fund - 4,138,449 3,012,279 1,126,170 56,308 56,308 - 58.00% 57.12%
92,905 97,824 4,919 100% 99%

7. PAYABLE TO SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN

In accordance with the NBFC Regulations, a Collective Investment Scheme (CIS) is required to pay annual fee to the
Securities and Exchange Commission of Pakistan (SECP).

Effective from July 1, 2019, the SECP vide SRO No. 685(I)/2019 dated June 28, 2019, revised the rate of annual fee
to 0.02% of net assets, applicable on all categories of CISs. Previously, the rate of annual fee applicable to fund of
funds was 0.095%. Accordingly, the Fund has charged SECP Fee at the rate of 0.02% of net assets during the current
period.

8. CONTINGENCIES AND COMMITMENTS

There were no contingencies and commitments outstanding as at December 31, 2019 and June 30, 2019.
 4

December June 30,

31, 2019 2019
(Unaudited) (Audited)
MCPP-IX
9. ACCRUED EXPENSES AND OTHER LIABILITIES -----(Rupees in '000)----

Auditors' remuneration payable 52 50

Shariah advisory fee payable 148 30
Capital gain tax payable 26 -
Provision for Sindh Workers' Welfare Fund 9.1 204 -
430 80

9.1 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 on a prudent basis with effect from the date of enactment of
the SWWF Act, 2014 (i.e. starting from May 21, 2015).

Had the SWWF not been recorded the NAV per unit of the plan (MCPP IX) would have been higher by Re.0.11.

10. TRANSACTIONS WITH CONNECTED PERSONS / RELATED PARTIES

Connected persons include Al Meezan Investment Management Limited being the Management Company, Central
Depository Company of Pakistan Limited being the Trustee, Meezan Bank Limited being the holding company of the
Management Company, Directors and Executives of the Management Company, other funds under the common
management of 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 unitholders holding 10 percent or more of the Fund's net assets.

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 payable to the Management Company and the Trustee is determined in accordance with the provisions
of the NBFC Rules, the NBFC Regulations and the Trust Deed respectively.

Detail of transactions with connected persons and balances with them are as follows:

December June 30,

31, 2019 2019
(Unaudited) (Audited)
MCPP IX
-----(Rupees in '000)----
Al Meezan Investment Management Limited - Management Company
Remuneration payable (Rs in '000) 1 4
Sindh Sales Tax on management fee (Rs in '000) - 1
Allocated expenses (Rs in '000) 8 1
Sales load payable (Rs in '000) - 761
Sindh Sales Tax on sales load payable (Rs in '000) - 99
Investment (Rs in '000) 76,248 -
Investment (Units) 1,422,356 -

Meezan Bank Limited

Bank balance (Rs in '000) 1,157 15,898
Profit receivable (Rs in '000) 19 26
 5

December June 30,

31, 2019 2019
(Unaudited) (Audited)
MCPP IX
-----(Rupees in '000)----
Central Depository Company of Pakistan Limited - Trustee
Trustee fee payable (Rs. in '000) 6 1
Sindh Sales Tax on trustee fee payable (Rs. in '000) 1 -

Meezan Dedicated Equity Fund

Investment (Rs in '000) 41,516 5,449
Investment (Units) 982,023 153,424

Meezan Cash Fund

Investment (Rs in '000) - 3,259
Investment (Units) - 64,627

Meezan Sovereign Fund

Investment (Rs in '000) - 10,236
Investment (Units) - 198,820

Meezan Rozana Amdani Fund

Investment (Rs in '000) 56,308 -
Investment (Units) 1,126,170 -

Unitholders holding 10% or more units of the Fund

Investment (Rs in '000) - 4,802
Investment (Units) - 99,555

For the six

months
period ended
December 31,
2019
(Unaudited)
MCPP IX
(Rupees in '000)
Al Meezan Investment Management Limited - Management Company
Remuneration for the period (Rs in '000) 23
Sindh Sales Tax on management fee (Rs in '000) 3
Allocated expenses (Rs in '000) 46
Invested during the period (Rs in '000) 68,876
Invested during the period (Units) 1,422,356

Meezan Bank Limited

Profit on saving account (Rs in '000) 201

Central Depository Company of Pakistan Limited - Trustee

Trustee fee for the period (Rs in '000) 33
Sindh Sales Tax on trustee fee (Rs in '000) 4

Meezan Dedicated Equity Fund

Invested during the period (Rs in '000) 104,000
Invested during the period (Units) 2,985,403
Redeemed during the period (Rs in '000) 74,250
Redeemed during the period (Units) 2,156,804

Meezan Cash Fund

Invested during the period (Rs in '000) 74,789
Invested during the period (Units) 1,474,895
Redeemed during the period (Rs in '000) 78,255
Redeemed during the period (Units) 1,539,522
 6

For the six

months
period ended
December 31,
2019
(Unaudited)
MCPP IX
(Rupees in '000)
Meezan Sovereign Fund
Invested during the period (Rs in '000) 12,000
Invested during the period (Units) 232,743
Redeemed during the period (Rs in '000) 22,255
Redeemed during the period (Units) 431,562

Meezan Rozana Amdani Fund

Invested during the period (Rs in '000) 206,922
Invested during the period (Units) 4,138,449
Redeemed during the period (Rs in '000) 150,614
Redeemed during the period (Units) 3,012,279
Dividend received during the period (Units) 76,208
Dividend received during the period (Rs. In '000') 3,810

11. ALLOCATED EXPENSES

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).

Until June 19, 2019 there was a maximum cap of 0.1% of the average annual net assets of the scheme or actual
whichever is less, for allocation of such expense to the Fund. However, the SECP vide its SRO 639 dated June 20,
2019 removed the maximum cap of 0.1%.

The management company based on its own discretion has currently fixed a maximum capping of 0.1 percent of the
average annual net assets of the scheme for allocation of such expenses to the Fund.

12. PAYABLE TO CENTRAL DEPORSITORY COMPANY OF PAKISTAN LIMITED - TRUSTEE

The Trustee is entitled to a monthly remuneration for services rendered to the Fund under the provisions of the trust
deed. Effective from July 1, 2019, the Trustee has revised its remuneration as under:

Previous Tariff Revised Tariff

Net Assets (Rs.) Fee (Flat Rate)
Upto Rs. 1 billion 0.1% per annum of net assets 0.07% per annum
Above Rs. 1 billion Rs 1 million plus 0.075% per annum of net assets exceeding Rs 1 billion. of Net Assets.

Accordingly, the Fund has charged Trustee Fee @ 0.07% per annum during the current period.

13. TOTAL EXPENSE RATIO

The Total Expense Ratio (TER) of the Fund for the period ended December 31, 2019 is;
December 31,
2019
MCPP IX
(Rupees in '000)

Total Expense ratio (including government levies) 1.18%

Government levies 0.48%

This ratio is within the maximum limit of 2.5% prescribed under the NBFC Regulations for a collective investment
scheme categorised as a Fund of Fund Scheme.
 7

14. TAXATION

The Fund's income is exempt from income tax as per clause (99) of part I of the Second Schedule to the Income Tax
Ordinance, 2001 subject to the condition that not less than 90 percent of the accounting income for the year as
reduced by capital gains, whether realised or unrealised, is distributed amongst the unit holders. Furthermore, as per
regulation 63 of the NBFC Regulations, the Fund is required to distribute 90 percent of the net accounting income
other than capital gains to the unit holders. The Fund has not recorded any tax liability in respect of income relating to
the current period as the Management Company intends to distribute at least 90 percent of the Fund's accounting
income for the year ending June 30, 2020 as reduced by capital gains (whether realised or unrealised) to its unit
holders.

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.

15 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.

- Level 1: Fair value measurements using quoted price (unadjusted) in an active market for identical assets or
liabilities.
- Level 2: Fair value measurements using inputs other than quoted prices included within level 1 that are observable
for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
- Level 3: Fair value measurement using inputs for the asset or liability that are not based on observable market data
(i.e. unobservable inputs).

As at December 31, 2019 and June 30, 2019, the Fund held the following financial instruments measured at fair value:

As at December 31, 2019

ASSETS Level 1 Level 2 Level 3
--------------------------------------------- Rupees in '000 ---------------------------------------
Financial assets 'at fair value through profit or loss'
Units of mutual funds - 97,824 -

As at June 30, 2019

Level 1 Level 2 Level 3
--------------------------------------------- Rupees in '000 ---------------------------------------
Financial assets 'at fair value through profit or loss'
Units of mutual funds - 18,944 -

16 GENERAL

Figures have been rounded off to the nearest thousand rupees unless otherwise stated.

17. DATE OF AUTHORISATION FOR ISSUE

February 10, 2020
These condensed interim financial statements were authorised for issue on ________________ by the Board of
Directors of the Management Company.

For Al-Meezan Investment Management Limited

(Management Company)

_____________________ _____________________ _____________________

Chief Executive Chief Financial Officer Director
ILYASI MOSQUE
(ABBOTTABAD)
Meezan
Tahaffuz Pension Fund

MEEZAN TAHAFFUZ
PENSION FUND (MTPF)
Meezan Tahaffuz Pension Fund is Pakistan’s first
and the largest Shariah compliant Voluntary
Pension Scheme. MTPF is the best way to save
and invest for your post-retirement needs and it has
the potential to deliver superior returns with the
added advantage of providing Tax Benefits which
significantly enhances the yield on your investment.

STRENGTHENING
OUR VALUES IN THE
CITY OF HILLS

Abbottabad Branch
ILYASI MOSQUE
(ABBOTTABAD)
Meezan
Tahaffuz Pension Fund

MEEZAN TAHAFFUZ
PENSION FUND (MTPF)
Meezan Tahaffuz Pension Fund is Pakistan’s first
and the largest Shariah compliant Voluntary
Pension Scheme. MTPF is the best way to save
and invest for your post-retirement needs and it has
the potential to deliver superior returns with the
added advantage of providing Tax Benefits which
significantly enhances the yield on your investment.

STRENGTHENING
OUR VALUES IN THE
CITY OF HILLS

Abbottabad Branch
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. Mohammad Shoaib, CFA Chief Executive Officer
Mr. Muhammad Abdullah Ahmed Nominee Director - MBL
Mr. Mohammad Furquan R Kidwai Independent Director
Mr. ljaz Farooq Nominee Director - MBL
Mr. Moin M. Fudda Independent Director
Ms. Saima Kamila Khan Independent Director
Mr. Arshad Majeed Nominee Director - MBL
Mr. Naeem Abdul Sattar Nominee Director - PKIC
Syed Amir Ali Zaidi Nominee Director – PKIC

CFO & COMPANY SECRETARY OF THE MANAGEMENT COMPANY

Syed Owais Wasti

AUDIT COMMITTEE
Mr. Moin M. Fudda Chairman
Mr. Arshad Majeed Member
Mr. Naeem Abdul Sattar Member

RISK MANAGEMENT COMMITTEE

Mr. Muhammad Abdullah Ahmed Chairman
Syed Amir Ali Zaidi Member
Mr. Naeem Abdul Sattar Member

HUMAN RESOURSE & REMUNERATION COMMITTEE

Mr. Moin M. Fudda Chairman
Mr. Ariful Islam Member
Mr. Naeem Abdul Sattar 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
KPMG Taseer Hadi & Co
Chartered Accountants
Sheikh Sultan Trust Buildings, Ground، No 2 Beaumont Rd, Civil Lines, Karachi-75530 Pakistan

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 Al Habib Limited - Islamic Banking National Bank of Pakistan - Islamic Banking
Bank Alfalah Limited Sindh Bank Limited
Bank Islami Pakistan Limited UBL Ameen - Islamic Banking
Dubai Islamic Bank Pakistan Limited
Faysal Bank Limited - 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:

TRANSFER AGENT
Meezan Bank Limited
Meezan House
C-25, Estate Avenue, SITE, Karachi.
Phone: 38103538 Fax: 36406017
Website: www.meezanbank.com

DISTRIBUTORS
Al Meezan Investment Management Limited
Meezan Bank Limited
Standard Chartered Bank (Pakistan) Limited
Meezan Tahaffuz Pension Fund
Condensed Interim Statement of Assets and Liabilities
As at December 31, 2019

As at June 30,
As at December 31, 2019 (Un-Audited) 2019 (Audited)
Note Equity Debt Money Gold Total Total
Sub-Fund Sub-Fund Market Sub-Fund
Sub-Fund
------------------------------------- (Rupees in '000) --------------------------------------------
ASSETS

Bank balances 4 198,488 1,500,071 2,373,419 10,787 4,082,765 3,306,722

Investments 5 4,533,386 1,353,602 243,764 - 6,130,752 5,681,753
Investment in gold 5.5 - - - 82,312 82,312 71,218
Dividend receivable 1,209 - - - 1,209 15,260
Deposits and other receivables 6 12,211 74,647 27,073 62 113,993 87,842
Receivable against sale of investments 18,450 - - - 18,450 3,698
Receivable against change of plan / change of fund
manager / issuance of units - - 224 - 224 14,759
Total assets 4,763,744 2,928,320 2,644,480 93,161 10,429,705 9,181,252

LIABILITIES

Payable to Al Meezan Investment Management

Limited - Pension Fund Manager 7 6,627 4,120 3,694 131 14,572 12,480
Payable to Central Depository Company of Pakistan
Limited - Trustee (CDC) 8 364 226 203 7 800 715
Payable to Securities and Exchange Commission of
Pakistan (SECP) 9 652 465 400 16 1,533 3,100
Payable to auditors 64 64 64 64 256 252
Payable against purchase of investments 1,368 - - - 1,368 17
Payable against withdrawal / change of plan 5,449 3,639 2,292 - 11,380 24,345
Accrued expenses and other liabilities 10 82,829 22,855 9,920 776 116,380 90,024
Total liabilities 97,353 31,369 16,573 994 146,289 130,933

NET ASSETS 4,666,391 2,896,951 2,627,907 92,167 10,283,416 9,050,319

Contingencies and commitments 12

Participants' sub funds (as per statement attached) 4,666,391 2,896,951 2,627,907 92,167

------------------------------------- (Number of units) --------------------------------------------

Number of units in issue (as per statement attached) 10,222,593 11,602,437 10,634,850 668,595

-------------------------------- (Rupees) ------------------------------

Net assets value per unit 456.4782 249.6847 247.1033 137.8518

The annexed notes 1 to 17 form an integral part of the condensed interim financial information.

For Al Meezan Investment Management Limited

(Pension Fund Manager)

______________________ ______________________ ______________________

Chief Financial Officer Chief Executive officer Director
Meezan Tahaffuz Pension Fund
Condensed Interim Income Statement and Statement of Comprehensive Income (Un-Audited)
For the six months period ended December 31, 2019

December
December 31, 2019 31, 2018
Note Equity Debt Money Gold Total Total
Sub-Fund Sub-Fund Market Sub-Fund
Sub-Fund
--------------------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------------------
INCOME

Profit from sukuk certificates - 87,901 10,456 - 98,357 47,363

Profit on saving accounts with banks 4.1 11,388 68,679 127,079 520 207,666 71,498
Profit on term deposit receipts - 28,014 15,191 - 43,205 34,603
Dividend income 128,789 - - - 128,789 134,464
Unrealised appreciation / (diminution) on 're-measurement of
investments at 'fair value through profit or loss' (net) 5.1, 5.2.1 707,511 (955) - - 706,556 (714,520)
Unrealised appreciation on investment in gold 5.5 - - - 5,041 5,041 6,915
Net realised (loss) / gain on sale of investments (16,804) 131 - 261 (16,412) (77,051)
Other income - - - 235 235 354
Total income / (loss) 830,884 183,770 152,726 6,057 1,173,437 (496,374)

EXPENSES

Remuneration to Al Meezan Investment Management

Limited - Pension Fund Manager 29,381 20,929 18,016 714 69,040 70,978
Sindh Sales Tax on remuneration of the Pension Fund Manager 3,820 2,721 2,342 93 8,976 9,227
Remuneration of Central Depository Company of Pakistan
Limited - Trustee 1,666 1,189 1,023 41 3,919 3,998
Sindh Sales Tax on remuneration of the Trustee 217 155 133 5 510 521
Annual fee to Securities and Exchange Commission of Pakistan 652 465 400 16 1,533 1,577
Auditors' remuneration 97 97 97 97 388 341
Brokerage charges and custodian fee 2,053 14 - 420 2,487 2,430
Bank and settlement charges 380 181 121 31 713 617
Charity expense 3,495 - - - 3,495 1,985
Provision for Sindh Workers' Welfare Fund 11 16,461 3,214 2,791 101 22,567 2,472
Total expenses 58,222 28,965 24,923 1,518 113,628 94,146

Net income/ (loss) from operating activities 772,662 154,805 127,803 4,539 1,059,809 (590,520)

Element of income / (loss) and capital gains / (losses) included in

prices of units issued less those in units redeemed (net) 33,918 2,670 8,939 388 45,915 (10,944)
Net income / (loss) for the period before taxation 806,580 157,475 136,742 4,927 1,105,724 (601,464)

Taxation - - - - - -
Net income / (loss) for the period after taxation 806,580 157,475 136,742 4,927 1,105,724 (601,464)

Total comprehensive income / (loss) for the period 806,580 157,475 136,742 4,927 1,105,724 (601,464)

The annexed notes 1 to 17 form an integral part of the condensed interim financial information.

For Al Meezan Investment Management Limited

(Pension Fund Manager)

______________________ ______________________ ______________________

Chief Financial Officer Chief Executive officer Director
Meezan Tahaffuz Pension Fund
Condensed Interim Income Statement and Statement of Comprehensive Income (Un-Audited)
For the three months period ended December 31, 2019

December
December 31, 2019 31, 2018
Equity Debt Money Gold Total Total
Sub-Fund Sub-Fund Market Sub-Fund
Sub-Fund
------------------------------------------ (Rupees in '000) -----------------------------------------------
INCOME

Profit from sukuk certificates - 46,171 5,546 - 51,717 27,030

Profit on saving accounts with banks 5,924 33,696 66,375 311 106,306 44,822
Profit on term deposit receipts - 16,580 9,387 - 25,967 15,337
Dividend income 70,453 - - - 70,453 77,249
Unrealised appreciation / (diminution) on 're-measurement of
investments at 'fair value through profit or loss' (net) 942,319 77 - - 942,396 (522,660)
Unrealised appreciation on investment in gold - - - 593 593 7,833
Net realised gain / (loss) on sale of investments 40,413 75 - 261 40,749 (67,375)
Other income - - - 107 107 272
Total income / (loss) 1,059,109 96,599 81,308 1,272 1,238,288 (417,492)

EXPENSES

Remuneration to Al Meezan Investment Management

Limited - Pension Fund Manager 15,882 10,514 9,422 354 36,172 35,815
Sindh Sales Tax on remuneration of the Pension Fund Manager 2,065 1,367 1,225 46 4,703 4,657
Remuneration of Central Depository Company of Pakistan
Limited - Trustee 889 589 528 20 2,026 2,011
Sindh Sales Tax on remuneration of the Trustee 116 77 69 3 265 263
Annual fee to Securities and Exchange Commission of Pakistan 353 233 209 3 798 796
Auditors' remuneration 69 68 69 69 275 208
Brokerage charges and custodian fee 1,547 15 - 211 1,773 1,508
Bank and settlement charges 308 114 119 10 551 467
Charity expense 1,804 - - - 1,804 1,209
Provision for Sindh Workers' Welfare Fund 16,461 1,755 1,509 3 19,728 1,693
39,494 14,732 13,150 719 68,095 48,627

Net income/ (loss) from operating activities 1,019,615 81,867 68,158 553 1,170,193 (466,119)

Element of income / (loss) and capital gains / (losses) included in

prices of units issued less those in units redeemed (net) 4,952 4,121 5,768 (405) 14,436 (12,672)
Net income / (loss) for the period before taxation 1,024,567 85,988 73,926 148 1,184,629 (478,791)

Taxation - - - - -
Net income / (loss) for the period after taxation 1,024,567 85,988 73,926 148 1,184,629 (478,791)

Other comprehensive income

Total comprehensive income for the period 1,024,567 85,988 73,926 148 1,184,629 (478,791)

The annexed notes 1 to 17 form an integral part of the condensed interim financial information.

For Al Meezan Investment Management Limited

(Pension Fund Manager)

______________________ ______________________ ______________________

Chief Financial Officer Chief Executive officer Director
Meezan Tahaffuz Pension Fund
Condensed Interim Cash Flow Statement (Un-Audited)
For the six months period ended December 31, 2019

December
Note December 31, 2019 31, 2018
Equity Debt Money Market Gold Total Total
Sub-Fund Sub-Fund Sub-Fund Sub-Fund
------------------------------------------------ (Rupees in '000) ----------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES

Net income / (loss) for the period 806,580 157,475 136,742 4,927 1,105,724 (601,464)

Adjustments
Unrealised (appreciation)/diminution on 're-measurement of
investments at 'fair value through profit or loss' (net) 5.1, 5.2.1 (707,511) 955 - - (706,556) 714,520
Unrealised appreciation on investment in gold 5.5 - - - (5,041) (5,041) (6,915)
Element of (income) / loss and capital (gains) / losses included in
prices of units issued less those in units redeemed (net) (33,918) (2,670) (8,939) (388) (45,915) 10,944
65,151 155,760 127,803 (502) 348,212 117,085
Decrease / (increase) in assets
Investments - net 95,179 142,742 19,636 (6,053) 251,504 780,501
Dividend receivable 14,051 - - - 14,051 6,087
Receivable against sale of investments (net) (14,752) - - - (14,752) -
Deposits and other receivables (3,593) (21,365) (1,187) (6) (26,151) (13,108)
90,885 121,377 18,449 (6,059) 224,652 773,480
Increase in liabilities
Payable to Al Meezan Investment Management Limited
- Pension Fund Manager 783 355 931 23 2,092 775
Payable to Central Depository Company of Pakistan Limited -
Trustee 29 10 45 1 85 39
Payable to Securities and Exchange Commission of Pakistan (1,045) (428) (90) (4) (1,567) (1,331)
Payable to auditors 1 1 1 1 4 28
Payable against purchase of investments (net) 1,368 - - (17) 1,351 5,349
Accrued expenses and other liabilities 20,199 3,196 2,791 170 26,356 5,932
21,335 3,134 3,678 174 28,321 10,792
Net cash generated from / (used in) operating activities 177,371 280,271 149,930 (6,387) 601,185 901,357

CASH FLOW FROM FINANCING ACTIVITIES

Receipts of contribution / change of plan /

change of fund manager / issuance of units 884,421 1,214,483 1,648,762 15,205 3,762,871 3,051,515
Payments on withdrawal / change of plan (1,086,264) (1,264,889) (1,226,844) (10,016) (3,588,013) (2,360,816)
Net cash generated from / (used in) financing activities (201,843) (50,406) 421,918 5,189 174,858 690,699
Net increase / (decrease) in cash and cash equivalents (24,472) 229,865 571,848 (1,198) 776,043 1,592,056

Cash and cash equivalents at beginning of the period 222,960 1,270,206 1,801,571 11,985 3,306,722 1,450,885
Cash and cash equivalents at end of the period 198,488 1,500,071 2,373,419 10,787 4,082,765 3,042,941

The annexed notes 1 to 17 form an integral part of the condensed interim financial information.

For Al Meezan Investment Management Limited

(Pension Fund Manager)

______________________ ______________________ ______________________

Chief Financial Officer Chief Executive officer Director
Meezan Tahaffuz Pension Fund
Condensed Interim Statement of Movement in Participants' Sub-Funds (Un-Audited)
For the six months period ended December 31, 2019

December
December 31, 2019 31, 2018
Equity Debt Money Gold Total Total
Sub-Fund Sub-Fund Market Sub-Fund
Sub-Fund
--------------------------------------------- (Rupees in '000) ---------------------------------------------

Net assets at beginning of the period 4,086,115 2,807,052 2,072,836 84,316 9,050,319 9,257,013

Amount received on issuance of units

(2019: Equity sub fund: 2,421,344 units;
Debt sub fund: 4,971,890 units;
Money market sub fund: 6,863,867 units; and
Gold sub fund: 95,408 units)

(2018: Equity sub fund: 1,898,913 units;

Debt sub fund: 2,782,934 units;
Money market sub fund: 6,969,061 units; and
Gold sub fund: 35,495 units) 884,421 1,201,601 1,648,986 13,328 3,748,336 3,051,114

Amount paid on withdrawal of units

(2019: Equity sub fund: 3,020,705 units
Debt sub fund: 5,258,088 units;
Money market sub fund: 5,078,003 units ;
Gold sub fund: 72,997 units)

(2018: Equity sub fund: 1,320,239 units;

Debt sub fund: 3,976,379 units;
Money market sub fund: 3,898,634 units ;
Gold sub fund: 12,847 units) (1,076,807) (1,266,507) (1,221,718) (10,016) (3,575,048) (2,366,390)
(192,386) (64,906) 427,268 3,312 173,288 684,724

Element of (income) / loss and capital

(gains) / losses included in prices of units
issued less those in units redeemed (net) (33,918) (2,670) (8,939) (388) (45,915) 10,944

Net realised (loss) / gain on sale of investments (16,804) 131 - 261 (16,412) (77,051)
Unrealised appreciation / (diminution) on
're-measurement of investments at 'fair
value through profit or loss' (net) 707,511 (955) - - 706,556 (714,520)
Unrealised appreciation on investment in gold - - - 5,041 5,041 6,915
Other net income for the period 115,873 158,299 136,742 (375) 410,539 183,192
Total comprehensive income / (loss) for the period 806,580 157,475 136,742 4,927 1,105,724 (601,464)

Net assets at end of the period 4,666,391 2,896,951 2,627,907 92,167 10,283,416 9,351,217

Net assets value per unit at end of the period 456.4782 249.6847 247.1033 137.8518

The annexed notes 1 to 17 form an integral part of the condensed interim financial information.

For Al Meezan Investment Management Limited

(Pension Fund Manager)

______________________ ______________________ ______________________

Chief Financial Officer Chief Executive officer Director
Meezan Tahaffuz Pension Fund
Condensed Interim Contribution Table (Un-Audited)
For the six months period ended December 31, 2019

December
December 31, 2019 31, 2018
Equity sub-fund Debt sub-fund Money Market sub-fund Gold sub-fund Total Total
Units (Rupees Units (Rupees Units (Rupees Units (Rupees (Rupees (Rupees
in '000) in '000) in '000) in '000) in '000) in '000)
Contribution net of front
end fee for the period

Individuals
- issuance of units 2,421,344 884,421 4,971,890 1,201,601 6,863,867 1,648,986 95,408 13,328 3,748,336 3,051,114

The annexed notes 1 to 17 form an integral part of the condensed interim financial information.

For Al Meezan Investment Management Limited

(Pension Fund Manager)

______________________ ______________________ ______________________

Chief Financial Officer Chief Executive officer Director
Meezan Tahaffuz Pension Fund
Condensed Interim Number Of Units In Issue (Un-Audited)
For the six months period ended December 31, 2019

December 31, 2019

Equity sub - Debt sub - Money market Gold sub -
fund fund sub -fund fund

--------------------- (Number) --------------------

Total units in issue at beginning of the period 10,821,954 11,888,635 8,848,986 646,184

Add: Units issued / converted / reallocated during

the period 2,421,344 4,971,890 6,863,867 95,408

Less: Units redeemed / converted / reallocated

during the period (3,020,705) (5,258,088) (5,078,003) (72,997)

Total units in issue at end of the period 10,222,593 11,602,437 10,634,850 668,595

December 31, 2018

Equity sub - Debt sub - Money market Gold sub -
fund fund sub -fund fund

---------------------------------- (Number) ----------------------------------

Total units in issue at beginning of the period 10,977,414 12,523,118 4,643,622 491,873

Add: Units issued / converted / reallocated during

the period 1,898,913 2,782,934 6,969,061 35,495

Less: Units redeemed / converted / reallocated

during the period (1,320,239) (3,976,379) (3,898,634) (12,847)

Total units in issue at end of the period 11,556,088 11,329,673 7,714,049 514,521

The annexed notes 1 to 17 form an integral part of the condensed interim financial information.

For Al Meezan Investment Management Limited

(Pension Fund Manager)

______________________ ______________________ ___________________

Chief Financial Officer Chief Executive officer Director
Meezan Tahaffuz Pension Fund
Notes to the Condensed Interim Financial Information (Un-Audited)
For the six months period ended December 31, 2019

1 LEGAL STATUS AND NATURE OF BUSINESS

1.1 Meezan Tahaffuz Pension Fund (the Fund) was established under a Trust Deed executed between Al Meezan Investment Management Limited as Pension
Fund Manager and Central Depository Company of Pakistan Limited (CDC) as trustee. The Trust Deed was executed and approved by the Securities and
Exchange Commission of Pakistan (SECP) on May 30, 2007 under the Voluntary Pension System Rules, 2005 (VPS Rules). The registered office of the
Pension Fund Manager of the Fund, is situated at Ground Floor, Block B Finance and Trade Centre Sharah-e-Faisal, Karachi 74400, Pakistan.

The Fund offers a saving mechanism where an individual saves from his / her income during work life in order to retain financial security and comfort in
terms of regular income stream after retirement. The Fund comprises of four Shariah compliant sub funds namely Equity Sub-Fund, Debt Sub-Fund,
Money Market Sub-Fund and Gold Sub-Fund (collectively the "Sub-Funds"). Participants are offered various investment allocation schemes depending
on their investment horizon, return requirements, risk tolerance and any unique circumstances. The Fund offers six types of allocation schemes to the
contributors of the Fund namely High Volatility, Medium Volatility, Low Volatility, Lower Volatility, Variable Volatility and Life Cycle Allocation. The
participants of the Fund voluntarily determine the contribution amount, subject to the minimum limit fixed by the Pension Fund Manager. Allocation
scheme can be selected initially at the time of opening of account and subsequently the allocation and percentages may change twice in a financial
year. The contributions from participants are invested in various instruments belonging to different asset classes to get full benefits of risk minimization
through diversification.

1.2 Summary of significant investment policy for each of the Sub-Fund is as follows:

Equity Sub-Fund
The Equity Sub-Fund shall invest atleast 90% of net assets in listed equity securities based on quarterly average investment calculated on daily basis.
Investment in single company shall not exceed 10% of net assets or paid-up capital of the investee company, whichever is lower. Surplus funds may be
invested in Government Securities with maturity of less than one year or deposits with banks which are rated not less than “A.

Debt Sub-Fund
The Debt Sub-Fund shall invest in debt securities with maturity of not more than 5 years. At least 25 % of net assets of the Debt Sub-Fund shall be
invested in debt securities issued by the Federal Government and up to 25 % of net assets of Debt Sub-Fund may be deposited with banks having not
less than “AA Plus” rating. However, if such debt securities issued by Federal Government are not available, the assets of Debt Sub-Fund may be
deposited in Islamic Commercial Banks, having not less than “A+” rating or Islamic windows of conventional commercial banks, having not less than
“AA” rating or may be invested in Islamic bonds or Sukuks issued by entities wholly-owned by the Federal Government or in such Islamic securities
which are fully guaranteed by the Federal Government.

Money Market Sub-Fund

The Money Market Sub-Fund shall invest in short term debt instruments with weighted average maturity up to one year. Shariah Compliant Money Market
Sub Fund can invest in shariah compliant government securities where the time to maturity may be up to three years.

Gold Sub-Fund
The Gold Sub-Fund consist of physical gold and aims to provide opportunities of capital appreciation and maximum exposure to price of gold in a Shariah
Compliant manner, by investing a significant portion of net assets in deliverable gold base contracts available on Pakistan Mercantile Exchange (PMEX).

1.3 The Fund has been formed to enable the participants to contribute 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 Pension Fund Manager 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.

1.4 The Fund is an unlisted pension scheme. Units are offered for public subscription on a continuous basis. The units are non-transferable and can be
redeemed by surrendering them to the Fund at the option of the participants.

1.5 Title to the assets of the Sub Funds are held in the name of CDC as a Trustee of the Fund.

1.6 Meezan Bank Limited acts as its Shariah Advisor to ensure that the activities of the Fund are in compliance with the principles of Shariah.

1.7 The Pension Fund Manager has been assigned a quality rating of AM1 by VIS dated December 31, 2019 (2018: AM1 dated December 28, 2018) and AM1
by PACRA dated December 28, 2019 (2019: AM1 dated June 28, 2019). The rating reflects the Company's experienced management team, structured
investment process and sound quality of systems and processes.

2 BASIS OF PREPARATION

2.1 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 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 approved accounting standards as applicable in Pakistan.

2.2 Statement of Compliance

2.2.1 The condensed interim financial information has been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for
interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprises of:

- International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standards Board (IASB) as notified
under the Companies Act, 2017;

- Provisions of the Voluntary Pension System Rules, 2005 (the VPS Rules); and

- Provisions of and or directives issued by the Securities Exchange Commission of Pakistan (SECP).

In case where requirements differ, the VPS Rules and the provisions of and or directives issued by SECP shall prevail.
2.2.2 This condensed interim financial information does not include all the information and disclosures required in the annual financial statements and should
therefore be read in conjunction with the annual financial statements of the Fund as at and for the year ended June 30, 2019. However, selected
explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Fund's financial position
and performance since the last financial statements.

2.2.3 This condensed interim financial information is being submitted to the participants as required under Regulation 7(f) of the VPS Rules, 2005.

2.3 Basis of Measurement

This condensed interim financial information has been prepared under the historical cost convention except for certain investments which are stated at
fair value.

2.4 Functional and presentation currency

This condensed interim financial information is presented in Pakistani Rupees which is the Fund's functional and presentation currency and rounded to
nearest thousand rupees.

2.5 Standards, interpretations and amendments to approved accounting standards that are not yet effective

The following International Financial Reporting Standards (IFRS Standards) as notified under the Companies Act, 2017 and the amendments and
interpretations thereto will be effective for accounting periods beginning on or after January 01, 2020:

- Amendment to IFRS 3 ‘Business Combinations’ – Definition of a Business (effective for business combinations for which the acquisition date is on or
after the beginning of annual period beginning on or after 1 January 2020). The IASB has issued amendments aiming to resolve the difficulties that arise
when an entity determines whether it has acquired a business or a group of assets. The amendments clarify that to be considered a business, an
acquired set of activities and assets must include, at a minimum, an input and a substantive process that together significantly contribute to the ability
to create outputs. The amendments include an election to use a concentration test. The standard is effective for transactions in the future and therefore
would not have an impact on past financial statements.

- Amendments to IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors (effective for
annual periods beginning on or after 1 January 2020). The amendments are intended to make the definition of material in IAS 1 easier to understand and
are not intended to alter the underlying concept of materiality in IFRS Standards. In addition, the IASB has also issued guidance on how to make
materiality judgments when preparing their general purpose financial statements in accordance with IFRS Standards.

- On March 29, 2018, the International Accounting Standards Board (the IASB) has issued a revised Conceptual Framework for Financial Reporting which
is applicable immediately contains changes that will set a new direction for IFRS in the future. The Conceptual Framework primarily serves as a tool for
the IASB to develop standards and to assist the IFRS Interpretations Committee in interpreting them. It does not override the requirements of individual
IFRSs and any inconsistencies with the revised Framework will be subject to the usual due process – this means that the overall impact on standard
setting may take some time to crystallise. The entities may use the Framework as a reference for selecting their accounting policies in the absence of
specific IFRS requirements. In these cases, entities should review those policies and apply the new guidance retrospectively as of January 01, 2020,
unless the new guidance contains specific scope outs.

- Interest Rate Benchmark Reform which amended IFRS 9, IAS 39 and IFRS 7 is applicable for annual financial periods beginning on or after 1 January
2020. The G20 asked the Financial Stability Board (FSB) to undertake a fundamental review of major interest rate benchmarks. Following the review, the
FSB published a report setting out its recommended reforms of some major interest rate benchmarks such as IBORs. Public authorities in many
jurisdictions have since taken steps to implement those recommendations. This has in turn led to uncertainty about the long-term viability of some
interest rate benchmarks. In these amendments, the term 'interest rate benchmark reform' refers to the market-wide reform of an interest rate
benchmark including its replacement with an alternative benchmark rate, such as that resulting from the FSB's recommendations set out in its July 2014
report 'Reforming Major Interest Rate Benchmarks' (the reform). The amendments made provide relief from the potential effects of the uncertainty
caused by the reform. An entity shall apply the exceptions to all hedging relationships directly affected by interest rate benchmark reform. The
amendments are not likely to affect the financial statements of the Fund.

- IFRS 14 Regulatory Deferral Accounts - (effective for annual periods beginning on or after 1 July 2019) provides interim guidance on accounting for
regulatory deferral accounts balances while IASB considers more comprehensive guidance on accounting for the effects of rate regulation. In order to
apply the interim standard, an entity has to be rate regulated – i.e. the establishment of prices that can be charged to its customers for goods or services
is subject to oversight and/or approved by an authorized body. The term ‘regulatory deferral account balance’ has been chosen as a neutral descriptor for
expense (income) or variance account that is included or is expected to be included by the rate regulator in establishing the rate(s) that can be charged
to customers and would not otherwise be recognized as an asset or liability under other IFRSs. The standard is not likely to have any effect on Fund’s
financial statements.

3 SIGNIFICANT ACCOUNTING POLICIES AND RISK MANAGEMENT FRAMEWORK

3.1 The accounting policies adopted and the methods of computation of balances used in the preparation of this condensed interim financial information
are the same as those applied in the preparation of the annual financial statements of the Fund for the year ended June 30, 2019.

3.2 The Fund’s financial risk management objectives and policies are consistent with those disclosed in the annual financial statements of the Fund for the
year ended June 30, 2019.
 June 30, 2019
4 BANK BALANCES December 31, 2019 (Un-Audited) (Audited)
Note Equity Debt Money Gold Total Total
Sub-Fund Sub-Fund Market Sub-Fund
Sub-Fund
------------------------------------------ (Rupees in '000) ------------------------------------------

In current accounts 4,257 - - - 4,257 1,295

In savings accounts 4.1 194,231 1,500,071 2,373,419 10,787 4,078,508 3,305,427
198,488 1,500,071 2,373,419 10,787 4,082,765 3,306,722

4.1 This represents bank accounts held with various banks. Profit rates on these accounts range between 3.00% to 13.75% per annum (Year ended
June 30, 2019: 3.0% - 12.50% per annum).

June 30, 2019

5 INVESTMENTS December 31, 2019 (Un-Audited) (Audited)
Note Equity Debt Money Total Total
Sub-Fund Sub-Fund Market
Sub-Fund
Investments by category --------------------------------- (Rupees in '000) ------------------------------

At fair value through profit or loss

Listed equity securities 5.1 4,533,386 - - 4,533,386 3,921,054
Sukuk certificates 5.2 - 1,019,705 100,771 1,120,476 1,171,834
4,533,386 1,019,705 100,771 5,653,862 5,092,888

At amortised Cost
Commercial papers 5.3 - 155,160 103,764 258,924 370,899
Term deposit receipts 5.4 - 180,000 40,000 220,000 220,000
- 335,160 143,764 478,924 590,899
`
Less: Provision for impairment losses 5.2.3 - (1,263) (771) (2,034) (2,034)
4,533,386 1,353,602 243,764 6,130,752 5,681,753
5.1 Listed equity securities - at fair value through profit or loss

Held by Equity Sub-Fund

Shares of listed companies - fully paid up ordinary shares of Rs. 10 each unless stated otherwise

Name of the Investee Company As at July Purchases Bonus / Sales during As at Carrying Value Market value as Unrealised gain / Market value as Par value as a
01, 2019 during the Rights issue the period December as at December at December 31, (loss) as at a percentage of percentage of
period 31, 2019 31, 2019 2019 December 31, net assets of sub- issued capital of
2019 fund the investee
company
---------------------------------Number of shares--------------------------------- ------------------- (Rupees in '000) ------------------- ----------------------%----------------------
Automobile Assembler

Atlas Honda Limited 24,360 - - 24,360 - - - - - -

Millat Tractors Limited 50,550 5,000 6,093 6,800 54,843 41,871 38,633 (3,238) 0.83 0.11
Ghandhara Industries Limited 200,800 - - 188,100 12,700 1,110 1,693 583 0.04 0.03
Indus Motor Company Limited - 36,420 - - 36,420 44,227 42,308 (1,919) 0.91 0.05
87,208 82,634 (4,574) 1.78
Automobile Parts & Accessories

Agriauto Industries Limited (Face value Rs. 5) - 63,000 - - 63,000 13,212 12,600 (612) 0.27 0.22
Thal Limited (Face value Rs. 5) - 137,400 - 137,400 - - - - - -
13,212 12,600 (612) 0.27
Bank

Bank Islami Pakistan Limited - 4,034,500 - 175,000 3,859,500 41,594 42,802 1,208 0.92 0.35
41,594 42,802 1,208 0.92
Cement

D.G Khan Cement Company Limited 477,800 300,000 - 652,800 125,000 7,249 9,284 2,035 0.20 0.03
Lucky Cement Limited 792,456 155,000 - 93,000 854,456 327,370 366,049 38,679 7.84 0.26
Pioneer Cement Company Limited 2,600 - - 2,600 - - - - - -
Maple Leaf Cement Factory Limited 354,062 52 - 354,000 114 2 3 1 - -
Kohat Cement Company Limited 658,820 - - 90,000 568,820 29,879 44,026 14,147 0.94 0.28
Attock Cement Pakistan Limited 20,500 - - 20,000 500 36 52 16 - -
Cherat Cement Company Limited - 475,000 10,000 275,000 210,000 8,635 11,141 2,506 0.24 0.11
Fauji Cement Company Limited - 595,000 - 595,000 - - - - - -
373,171 430,555 57,384 9.22
Chemical

Engropolymer & Chemicals Limited 1,976,709 2,020,000 - 2,068,500 1,928,209 53,211 64,036 10,825 1.37 0.21
ICI Pakistan Limited 205,820 7,000 - 300 212,520 112,786 143,419 30,633 3.07 0.23
Sitara Chemical Industries Limited 36,600 - - - 36,600 11,195 10,924 (271) 0.23 0.17
177,192 218,379 41,187 4.67
Name of the Investee Company As at July Purchases Bonus / Sales during As at Carrying Value Market value as Unrealised gain / Market value as Par value as a
01, 2019 during the Rights issue the period December as at December at December 31, (loss) as at a percentage of percentage of
period 31, 2019 31, 2019 2019 December 31, net assets of sub- issued capital of
2019 fund the investee
company
---------------------------------Number of shares--------------------------------- ------------------- (Rupees in '000) ------------------- ----------------------%----------------------
Engineering

K.S.B Pumps Company Limited 67,500 - - 7,600 59,900 6,050 10,181 4,131 0.22 0.45
International Steels Limited 359,100 250,000 - 609,100 - - - - - -
International Industries Limited 209,500 447,000 50 209,000 447,550 43,813 49,605 5,792 1.06 0.34
Amreli Steels Limited - 250,000 - 100,000 150,000 4,516 5,418 902 0.12 0.05
Mughal Iron & Steel Industries - 282,500 - 50,000 232,500 7,286 9,526 2,240 0.20 0.09
61,665 74,730 13,065 1.60
Fertilizer

Engro Corporation Limited (note 5.1.1) 1,473,120 - - 176,700 1,296,420 344,329 447,589 103,260 9.59 0.23
Engro Fertilizers Limited 3,063,000 519,000 - 225,000 3,357,000 216,570 246,504 29,934 5.28 0.25
Dawood Hercules Corporation Limited - 50,000 - - 50,000 6,794 7,711 917 0.17 0.01
567,693 701,804 134,111 15.04
Food and Personal Care Products

National Foods Limited (Face value Rs. 5) 100,000 - 3,680 81,600 22,080 3,389 4,902 1,513 0.11 0.01
Al-Shaheer Corporation Limited 33,160 - - - 33,160 417 468 51 0.01 0.02
At- Tahur Limited 8,318 - 831 - 9,149 164 192 28 - 0.01
3,970 5,562 1,592 0.12
Oil and Gas Exploration Companies

Oil and Gas Development Company Limited 2,965,300 300,000 - 439,100 2,826,200 371,603 402,225 30,622 8.62 0.07
Pakistan Oilfields Limited 802,520 20,000 - 1,200 821,320 333,170 366,900 33,730 7.86 0.29
Pakistan Petroleum Limited 2,303,765 100,000 413,673 435,400 2,382,038 287,025 326,673 39,648 7.00 0.09
Mari Petroleum Company Limited 251,440 1,000 24,844 3,000 274,284 252,083 359,339 107,256 7.70 0.21
1,243,881 1,455,137 211,256 31.18
Oil and Gas Marketing Companies

Pakistan State Oil Company Limited 1,335,450 101,200 251,090 730,000 957,740 140,360 183,541 43,181 3.93 0.20
Attock Petroleum Limited 68,144 82,000 - - 150,144 44,802 55,523 10,721 1.19 0.15
Sui Northern Gas Pipelines Limited 2,860,600 - - 65,000 2,795,600 194,266 212,941 18,675 4.56 0.44
Sui Sourthern Gas Company Limited 142,500 - - - 142,500 2,947 3,067 120 0.07 0.02
Hascol Petroleum Limited 228,638 - - 226,050 2,588 178 70 (108) - -
382,553 455,142 72,589 9.75
Paper and Board

Packages Limited 209,601 3,000 - 15,000 197,601 59,337 78,791 19,454 1.69 0.22
Cherat Packaging Limited 328,540 - 26,554 63,000 292,094 21,413 35,469 14,056 0.76 0.69
80,750 114,260 33,510 2.45
Glass & Chemical

Tariq Glass Industries Limited 382,600 50,000 - 304,000 128,600 11,748 13,760 2,012 0.29 0.18
11,748 13,760 2,012 0.29
 Name of the Investee Company As at July Purchases Bonus / Sales during As at Carrying Value Market value as Unrealised gain / Market value as Par value as a
01, 2019 during the Rights issue the period December as at December at December 31, (loss) as at a percentage of percentage of
period 31, 2019 31, 2019 2019 December 31, net assets of sub- issued capital of
2019 fund the investee
company
---------------------------------Number of shares--------------------------------- ------------------- (Rupees in '000) ------------------- ----------------------%----------------------
Pharmaceuticals

AGP Limited 830,000 53,500 - 25,000 858,500 60,132 85,292 25,160 1.83 0.31
GlaxoSmithKline Consumer Healthcare 17,500 95,000 - - 112,500 30,702 28,847 (1,855) 0.62 0.10
The Searle Company Limited 530,825 25,000 - 240,000 315,825 46,215 59,609 13,394 1.28 0.15
Highnoon Laboratories Limited 1,760 500 - - 2,260 726 1,214 488 0.03 0.01
137,775 174,962 37,187 3.76
Power Generation and Distribution

The Hub Power Company Limited 3,249,307 924,500 - 222,000 3,951,807 309,813 368,901 59,088 7.91 0.30
K-Electric Limited (Face value Rs. 3.5) 26,611,000 500,000 - 615,500 26,495,500 116,247 115,785 (462) 2.48 0.10
426,060 484,686 58,626 10.39
Textile Composite

Nishat Mills Limited 532,700 215,000 - 385,000 362,700 32,276 38,497 6,221 0.82 0.10
32,276 38,497 6,221 0.82
Textile Weaving

Feroze1888 Mills Limited 295,000 - - - 295,000 29,757 27,140 (2,617) 0.58 0.08
29,757 27,140 (2,617) 0.58
Technology & Communication

Pakistan Telecommunication Company Limited "A" 208,000 - - - 208,000 1,720 1,947 227 0.04 0.01
Avanceon Limited 370,500 - - 370,000 500 25 19 (6) - -
Systems Limited 253,550 100,000 - 25,000 328,550 33,234 40,837 7,603 0.88 0.27
Netsol Technologies Limited 15,000 - - 15,000 - - - - - -
34,979 42,803 7,824 0.92
Vanaspati & Allied Industries

Unity Foods Limited 2,025,669 - - 2,000,000 25,669 264 414 150 0.01 -
264 414 150 0.01
Textile & Apparel

Interloop Limited 2,713,500 - - - 2,713,500 120,127 157,519 37,392 3.38 0.31

120,127 157,519 37,392 3.38

3,825,875 4,533,386 707,511

5.1.1 145,000 shares (2019 : 145,000 shares) of Engro Corporation Limited having market value of Rs. 50.06 million as at December 31, 2019 (2019: 38.51 million) , have been pledged as collateral in favour of National Clearing
Company of Pakistan Limited against exposure margins and mark to market losses.

5.1.2 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 period were not withheld by the investee companies.

The status of bonus shares already withheld prior to the introduction of Finance Act, 2018 is the same as that disclosed in the audited financial statements of the Fund for the year ended June 30, 2019.
5.2 Sukuk certificates - At fair value through profit or loss
5.2.1 Held by Debt Sub-Fund
Note As at July 01, Purchases Sales / Matured As at Amortised Cost Market value as Unrealised gain / Market value as a percentage of
Name of the Investee Company 2019 during the during the December 31, as at December at December (loss) as at Total Net Assets
period period 2019 31, 2019 31, 2019 December 31, Investments
2019
--------------------------------Number of certificates-------------------------------- ------------------(Rupees in '000)------------------ -------------------%-------------------
Chemicals
Engro Polymer & Chemicals Limited 250 - - 250 25,117 25,344 227 1.87 0.87
25,117 25,344 227 1.87 0.87
Electricity
K-electric Limited 1,200 - 1,200 - - - - - -
K-electric Limited 5.2.2.2 - 8,000 - 8,000 40,000 40,000 - 2.96 1.38
Pakistan Energy Sukuk I 5.2.2.2 13,000 - - 13,000 650,000 650,000 - 48.02 22.44
Shakarganj Foods Product Limited 5.2.2.3 18 - - 18 16,730 16,464 (266) 1.22 0.57
706,730 706,464 (266) 52.20 24.39
Engineering
Agha Steels Industries Limited 5.2.2.2 50 - - 50 50,000 50,000 - 3.69 1.73
50,000 50,000 - 3.69 1.73
Fertilizer
Fatima Fertilizer Company Limited 2,820 6,000 1,164 7,656 23,475 23,463 (12) 1.73 0.81
23,475 23,463 (12) 1.73 0.81
Power Generation and Distribution
Engro Powergen Thar (Private) Limited 5.2.2.2 - 12,000 - 12,000 60,000 60,000 - 4.43 2.07
The Hub Power Company Limited 380,000 - 380,000 - - - - - -
60,000 60,000 - 4.43 2.07
Property & Real Estate
Eden Housing Limited 500 - - 500 - - - - -
- - - - -
Leasing Companies
Security Leasing Corporation Limited II 154 - - 154 - - - - -
- - - - -
Bank
Dubai Islamic Bank Pakistan Limited 57 - - 57 58,066 57,057 (1,009) 4.22 1.97
58,066 57,057 (1,009) 4.22 1.97
Pharmaceuticals
International Brand Limited 550 - 78 472 46,099 46,452 353 3.43 1.60
AGP Limited - 500 25 475 25,026 25,188 162 1.86 0.87
71,125 71,640 515 5.29 2.47
Cement
Javedan Corporation Limited 5.2.2.3 250 - - 250 24,884 24,474 (410) 1.81 0.84
24,884 24,474 (410) 1.81 0.84
Non-Performing Investments 5.2.3 1,263 1,263 -
Total 1,020,660 1,019,705 (955)

5.2.1.1 Significant terms and conditions of Sukuk certificates outstanding as at December 31, 2019 are as follows:
Name of security Original principal Mark-up rate Issue date Maturity date
(Rupees per certificate) (per annum)
Fatima Fertilizer Company Limited 5,000 6 months KIBOR + 1.10% 28-Nov-16 28-Nov-21
Dubai Islamic Bank Pakistan Limited 1000,0000 6 months KIBOR + 0.50% 14-Jul-17 14-Jul-27
International Brand Limited 1,00,000 12 months KIBOR + 0.50% 15-Nov-17 15-Nov-21
Shakarganj Foods Product Limited 1,000,000 3 months KIBOR + 1.75% 10-Jul-18 10-Jul-24
Javedan Corporation Limited 1,00,000 6 months KIBOR + 1.75% 04-Oct-18 04-Oct-26
Agha Steels Industries Limited 1,000,000 3 months KIBOR + 0.80% 09-Oct-18 09-Oct-24
Engro Polymer & Chemicals Limited 1,00,0000 3 months KIBOR + 0.90% 11-Jan-19 11-Jul-26
Pakistan Energy Sukuk I 10,000 6 months KIBOR + 0.80% 01-Mar-19 01-Mar-29
Engro Powergen Thar (Private) Limited 5,000 3 months KIBOR + 1.10% 01-Jul-19 01-Jul-24
K-electric Limited 5,000 3 months KIBOR + 1.70% 17-Dec-19 17-Dec-24
AGP Limited 100,0000 3 months KIBOR + 1.30% 09-Jun-17 09-Jun-22
Eden Housing Limited 984.38 3 months KIBOR + 2.50% 31-Dec-07 31-Dec-12
Security Leasing Corporation Limited II 5,000 3 months KIBOR + 1.30% 19-Sep-07 19-Sep-12
5.2.2 Held by Money Market Sub-Fund
Note As at July 01, Purchases Sales / Matured As at Amortised Cost Market value as Unrealised gain / Market value as a percentage of
Name of the Investee Company 2019 during the during the December 31, as at December at December (loss) as at Total Net Assets
period period 2019 31, 2019 31, 2019 December 31, Investments
2019
--------------------------------Number of certificates-------------------------------- ------------------(Rupees in '000)------------------ -------------------%-------------------
Leasing Companies
Security Leasing Corporation Limited II 154 - - 154 - - - - -
- - - - -
Power Generation and Distribution
The Hub Power Company Limited - 16,000 16,000 - - - - - -
The Hub Power Company Limited 5.2.2.2 1,000 - 1,000 100,000 100,000 - 7.39 3.45
100,000 100,000 - 7.39 3.45

Non-Performing Investments 5.2.3 771 771 -

Total 100,771 100,771 -

5.2.2.1 Significant terms and conditions of Sukuk certificates outstanding as at December 31, 2019 are as follows:
`
Name of security Original principal Mark-up rate Issue date Maturity date
(Rupees per certificate) (per annum)

The Hub Power Company Limited 100,000 3 months KIBOR + 1.50% 01-Nov-19 21-May-20

5.2.2.2 These are measured at their initial investment value, as their market values are not available at MUFAP.

5.2.2.3 The Fund has applied discretionary mark-up on December 30, 2019 to the fair value of these securities. Post to discretionary mark-up the price of Shakarganj Foods Product Limited is increased from Rs. 94.6096 (MUFAP Price) to
Rs. 96.2836 and price of Javedan Corporation is increased from Rs. 95.2419 (MUFAP Privce) to Rs. 97.8944 per certifcate.

5.2.3 The agreement with the Securities Leasing Corporation Limited (SLCL) had been amended on 19 February 2012. In accordance with the revised terms no mark-up is payable on the said sukuk with the approval of the contributories
to the sukuk certificate. The sukuk certificates have been classified as non-performing by MUFAP on April 03, 2012. Therefore, in accordance with the requirement of SECP's circular No. 33 of 2012, the sukuk has been classified
as non-performing assets and no further profit has been accrued thereafter. Further, in accordance with the provisioning policy, amount of Rs. 1.542 million in both debt and money market sub fund has also been held as provision
as a provision against principal as at 31 December 2019.

On 06 May 2011, Eden Housing sukuk certificate has been classified as non-performing by MUFAP, therefore, in accordance with the requirements of SECP's circular No. 33 of 2012, the sukuk certificate has been classified as
non-performing assets and no further profit has been accrued thereafter. Further, in accordance with the said circular, an amount of Rs. 0.492 million has also been held as a provision against the outstanding principal as at 31
December 2019.

Cost Provision held Net carrying

Non-performing investment Type of Investment value
Debt sub fund -----------------(Rupees in '000)---------------

Eden Housing Limited Sukuk certificate 492 492 -

Security Leasing Corportaion Limited II Sukuk certificate 771 771 -
1,263 1,263 -

Money Market sub fund Security Leasing Corportaion Limited II Sukuk certificate 771 771 -
771 771 -
5.3 Commercial Papers - at amortised cost
5.3.1 Held by Debt Sub-Fund
Maturity Date As at July 01, Placements Income Matured during As at December Market Value as a
Name of Company Note 2019 made during Accrued the period 31, 2019 Percentage of Percentage of
the period total value of Net Assets
investments
--------------------------------- (Rupees in '000) --------------------------------- -------------------%-------------------

Hascol Petroleum Limited 5.3.1.1 July 15, 2019 63,716 - 284 (64,000) - - -
K-electric Limited CP 5.3.1.2 Sep 02, 2019 163,803 - 3,197 (167,000) - - -
K-electric Limited CP 5.3.1.3 Mar 19, 2020 - 148,707 6,453 - 155,160 11.46 5.36
227,519 148,707 9,934 (231,000) 155,160 11.46 5.36
5.3.1.1 This commercial paper has been placed at discount at a rate of 12.26% (6months kibor plus 1.5%) and is being amortised over a period of 181 days.

5.3.1.2 This commercial paper has been placed at discount at a rate of 11.75% (6months kibor plus 0.9%)and is being amortised over a period of 185 days.

5.3.1.3 This commercial paper has been placed at discount at a rate of 15.23 (6months kibor plus 1.3%)% and is being amortised over a period of 182 days.

5.3.2 Held by Money Market Sub-Fund

Maturity Date As at July 01, Placements Income Matured during As at December Market Value as a
Name of Company Note 2019 made during Accrued the period 31, 2019 Percentage of Percentage of
the period total value of Net Assets
investments
--------------------------------- (Rupees in '000) --------------------------------- -------------------%-------------------
Hascol Petroleum Limited 5.3.2.1 July 15, 2019 79,645 - 355 (80,000) - - -
K-electric Limited CP 5.3.2.2 Sep 02, 2019 63,756 - 1,244 (65,000) - - -
K-electric Limited CP 5.3.2.3 Mar 19, 2020 - 99,448 4,316 - 103,764 42.57 3.95
143,401 99,448 5,915 (145,000) 103,764 42.57 3.95

5.3.2.1 This commercial paper has been placed at discount at a rate of 12.26% (6months kibor plus 1.5%) and is being amortised over a period of 181 days.

5.3.2.2 This commercial paper has been placed at discount at a rate of 11.75% (6months kibor plus 0.9%) and is being amortised over a period of 185 days.

5.3.2.3 This commercial paper has been placed at discount at a rate of 15.23% (6months kibor plus 1.3%) and is being amortised over a period of 182 days.

5.4 Term deposit receipts - at amortised cost

5.4.1 Held by Debt Sub-Fund

Name of the Bank Rating Maturity date Profit rate per As at July 01, TDR's placed Matured during As at December Market Value as a
annum 2019 during the the period 31, 2019 Percentage of Percentage of
period total value of Net Assets
investments
-------------------------- (Rupees in '000) ---------------------- -------------------%-------------------

Orix Modarba AA+ May 08, 2020 13.80% 180,000 - - 180,000 13 6

Meezan Bank Limited AA+ Dec 02, 2019 13.50% - 450,000 450,000 - - -
180,000 450,000 450,000 180,000 13 6

5.4.2 Held by Money Market Sub-Fund

Orix Modarba AA+ May 08, 2020 13.35% - 40,000 - 40,000 16 2

Meezan Bank Limited AA+ Dec 02, 2019 13.50% - 350,000 350,000 - - -
Orix Modarba AA+ Nov 08, 2019 13.70% 40,000 - 40,000 - - -
Bank Islami Pakistan Limited A+ Jul 04, 2019 11.25% 340,000 - 340,000 - - -
380,000 390,000 730,000 40,000 16 2

5.5 Investment in gold

As at Purchases Sales As at Carrying value Market value as Unrealised Market Value as
Commodity July 01, 2019 during the during December 31, as at December at December 31, gain as at a Percentage of
period the period 2019 31, 2019 2019 December 31, Net Assets
2019
------------------------------ (Quantity in Tola) --------------------------- ------------------- (Rupees'000) ------------------- %

Tola Gold 863 120 57 926 77,271 82,312 5,041 0.89

77,271 82,312 5,041 0.89

5.5.1 The Pakistan Mercantile Exchange (PMEX) delivers refined Gold in 10 TOLA Bars. These are physically held by PMEX under their custody in the vaults of a commercial bank.

5.5.2 The investment in gold of Rs. 82.312 million has been measured at fair value based on the quoted market price in active markets.
 June 30, 2019
6 DEPOSITS AND OTHER RECEIVABLES December 31, 2019 (Unaudited) (Audited)
Equity Debt Money Market Gold Total Total
Sub-Fund Sub-Fund Sub-Fund Sub-Fund
--------------------------------------------- (Rupees in '000) -------------------------------------------------

Security Deposits 2,600 100 100 - 2,800 2,800

Profit receivable on saving accounts with banks 4,864 16,209 24,500 62 45,635 26,362
Profit accrued on sukuk certificates - 42,564 1,683 - 44,247 40,606
Profit accrued on term deposit receipts - 15,774 790 - 16,564 13,327
Advance tax 4,747 - - - 4,747 4,747
12,211 74,647 27,073 62 113,993 87,842

7 PAYABLE TO AL MEEZAN INVESTMENT

MANAGEMENT LIMITED - PENSION FUND June 30, 2019
MANAGER December 31, 2019 (Unaudited) (Audited)
Note Equity Debt Money Market Gold Total Total
Sub-Fund Sub-Fund Sub-Fund Sub-Fund
--------------------------------------------- (Rupees in '000) -------------------------------------------------

Management remuneration 7.1 5,865 3,646 3,269 116 12,896 11,045

Sindh Sales Tax and Federal
Excise duty on management fee 7.2 762 474 425 15 1,676 1,435
6,627 4,120 3,694 131 14,572 12,480

7.1 As per rule 11 of the Voluntary Pension System Rules, 2005, Al Meezan Investment Management Limited, the Pension Fund Manager of the Fund is
allowed to charge an annual management fee of 1.5% (June 30, 2019: 1.5%) of the average of the values of the net assets of each of the Sub-Fund
calculated for determining the prices of the units of the Sub-Funds. Accordingly, the management fee has been accrued at 1.5% per annum of the
average daily net assets of the Sub-Funds.

7.2 The Sindh Provincial Government has levied Sindh Sales Tax (SST) at the rate of 13% (June 30, 2019: 13%) on the remuneration of the
Management Company through Sindh Sales Tax Act, 2011 effective from July 01, 2011.

8 PAYABLE TO CENTRAL DEPOSITORY COMPANY OF PAKISTAN LIMITED - TRUSTEE (CDC)

June 30, 2019

December 31, 2019 (Un-Audited) (Audited)
Note Equity Debt Money Market Gold Total Total
Sub-Fund Sub-Fund Sub-Fund Sub-Fund
--------------------------------------------------- (Rupees in '000) ---------------------------------------------
Trustee fee
322 200 180 6 708 633
Sindh Sales Tax on Remuneration of the Trustee 8.1 42 26 23 1 92 82
364 226 203 7 800 715

8.1 The Sindh Provincial Government has levied Sindh Sales Tax at the rate of 13% (June 30, 2019: 13%) on the remuneration of the Trustee through Sindh
Sales Tax Act, 2011 effective from July 01, 2011.

9 PAYABLE TO SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN (SECP)

This represents annual fee payable to SECP in accordance with the rule 36 of the VPS Rules whereby the Fund is required to pay SECP an amount
equal to one thirtieth of 1% of average annual net asset value of the Fund.

10 ACCRUED EXPENSES AND OTHER LIABILITIES

June 30, 2019
Note December 31, 2019 (Un-Audited) (Audited)
Equity Debt Money Market Gold Total Total
Sub-Fund Sub-Fund Sub-Fund Sub-Fund
---------------------------------------------- (Rupees in '000) --------------------------------------

Provision for Sindh Workers' Welfare Fund 11 54,603 12,990 7,229 592 75,414 52,848
Federal Excise Duty on remuneration
of the Pension Fund Manager 10.1 15,436 8,816 2,449 - 26,701 26,701
Sindh Sales Tax on Federal Excise Duty on
remuneration of the Pension Fund Manager 10.2 1,800 962 242 - 3,004 3,004
Charity payable 7,220 - - - 7,220 4,225
Brokerage payable 3,770 87 - - 3,857 3,139
Custodian charges payable - - - 184 184 107
82,829 22,855 9,920 776 116,380 90,024
10.1 Federal Excise Duty on remuneration of the Pension Fund Manager

As per the requirement of the Finance Act, 2013, Federal Excise Duty (FED) at the rate of 16 percent on the remuneration of the Pension Fund Manager
has been applied effective from June 13, 2013. The Pension Fund Manager is of the view that since the remuneration is already subject to the provincial
sales tax, further levy of FED may result in double taxation, which does not appear to be the spirit of the law, hence, a petition was collectively filed by
the Mutual Fund Association of Pakistan with the Sindh High Court (SHC).

While disposing the above petition, the SHC declared the said provisions to be ultra vires and as a result no FED is payable with effect from July 01, 2011.
However, the tax authorities subsequently filed appeal against the decison of the SHC in the Supreme Court of Paksitan, which is pending for the decison.

Furthermore, the Finance Act 2016, also introduced an amendement to the Fereral Excise Act, 2005 whereby FED was withdrawn on services of different
industries including Non- Banking Financial Institutions, which are for already subject to provisional sales tax.

However, since the appeal is pending in Supreme Court of Pakistan, the Pension Fund Manager, as a matter of abudant caution, is carrying provision for
FED, aggregating to Rs. 15.436 million, Rs. 8.816 million and Rs. 2.449 million for Equity Sub Fund, Debt Sub Fund and Money Market Sub Fund
respectively.

Had the provision not being made, the Net Asset Value per unit as at December 31, 2019 would have been higher by Rs. 1.51 (June 30, 2019: Rs. 1.42)
per unit, Re. 0.76 (June 30, 2019: Re. 0.74) per unit and Re. 0.23 (June 30, 2019: Re. 0.27) per unit for Equity Sub Fund, Debt Sub Fund and Money
Market Sub Fund respectively.

10.2 Sindh Sales Tax on Federal Excise Duty on remuneration of the Pension Fund Manager

It represents amount payable in respect of Sindh Sales Tax at the rate of 13 percent (June 30, 2019: 13 percent) on remuneration of the Pension Fund
Manager through the Sindh Sales Tax on Services Act, 2011, being Sindh Sales Tax accrued on Federal Excise Duty (FED) on remuneration of the Pension
Fund Manager as fully explained in note 10.1 above.

11 PROVISION FOR SINDH WORKERS' WELFARE FUND

The Finance Act, 2008 had introduced an amendment to the Workers' Welfare Fund Ordinance, 1971 (WWF Ordinance) as a result of which it was
construed that all Collective Investment Schemes (CISs) / mutual funds whose income exceeded Rs 0.5 million in a tax year were brought within the
scope of the WWF Ordinance, thus rendering them liable to pay contribution to WWF at the rate of two percent of their accounting or taxable income,
whichever was higher. In light of this, the Mutual Funds Association of Pakistan (MUFAP) filed a constitutional petition in the Honorable Sindh High Court
(SHC) challenging the applicability of WWF on CISs which is pending adjudication. Similar cases were disposed of by the Peshawar and the Lahore High
Courts in which these amendments were declared unlawful and unconstitutional. However, these decisions were challenged in the Supreme Court of
Pakistan.

Subsequently, the Finance Act, 2015 introduced an amendment under which CISs / mutual funds have been excluded from the definition of “industrial
establishment” subject to WWF under the WWF Ordinance. Consequently, mutual funds are not subject to this levy after the introduction of this
amendment which is applicable from tax year 2016. Accordingly, no further provision in respect of WWF was made with effect from 1 July 2015.

On November 10, 2016 the Supreme Court of Pakistan (SCP) has passed a judgment declaring the amendments made in the Finance Acts 2006 and 2008
pertaining to WWF as illegal citing that WWF was not in the nature of tax and could, therefore, not have been introduced through money bills. Accordingly,
the aforesaid amendments have been struck down by the SCP. The Federal Board of Revenue has filed a petition in the SCP against the said judgment,
which is pending hearing. While the petitions filed by the CISs on the matter are still pending before the SHC, the Mutual Funds Association of Pakistan
(MUFAP) (collectively on behalf of the asset management companies and their CISs) has taken legal and tax opinions on the impact of the SCP judgment
on the CISs petition before the SHC. Both legal and tax advisors consulted were of the view that the judgment has removed the very basis on which the
demands were raised against the CISs. Therefore, there was no longer any liability against the CISs under the WWF Ordinance and that all cases pending
in the SHC or lower appellate forums will now be disposed of in light of the earlier judgment of the SCP.

Furthermore, as a consequence of the 18th amendment to the Constitution of Pakistan, in May 2015 the Sindh Workers’ Welfare Fund Act, 2014 (SWWF
Act) had been passed by the government of Sindh as a result of which every industrial establishment located in 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. However, it may be stated that under Companies Act, 2017, mutual funds are explicitly excluded from the definition of financial
institution. Thereafter, MUFAP has taken up the matter with the Sindh Finance Ministry to have CISs / mutual funds excluded from the applicability of
SWWF. In the view of the above developments regarding the applicability of SWWF on CISs / mutual funds, the MUFAP has recommended that as a
matter of abundant caution provision in respect of SWWF should be made on prudent basis with effect from the date of enactment of the SWWF Act (i.e.
starting from May 21, 2015).

In the current period, SWWF recognized in all funds. Had the provision for SWWF not been recorded in these financial statements of the Fund , the net
asset value of the Fund as at 31 December 2019 would have been higher by Rs. 5.34 per unit (June 30, 2019: Rs. 3.52 per unit), Rs. 1.12 per unit (June
30, 2019: Re. 0.82 per unit) and Re. 0.68 per unit (June 30, 2019: Re. 0.50 per unit) and Re. 0.89 per unit (June 30, 2019: Re. 0.76 per unit) for Equity
Sub Fund, Debt Sub Fund, Money Market Sub Fund and Gold Sub Fund respectively.

12 CONTINGENCIES AND COMMITMENTS

There were no other contingencies and commitments outstanding as at December 31, 2019 other than as disclosed in the annual financials statements for
the year ended June 30, 2019.

13 TRANSACTIONS WITH CONNECTED PERSONS / RELATED PARTIES

Connected persons and related parties include Al Meezan Investment Management Limited being the Pension Fund Manager, Central Depository Company
of Pakistan Limited being the Trustee, Meezan Bank Limited being the holding company of the Pension Fund Manager, Directors and executives of the
Pension Fund Manager, other collective investment schemes managed by the Pension Fund Manager, Pakistan Kuwait Investment Company (Private)
Limited being the associated company of the Pension Fund Manager due to common directorship, post employment benefit funds of the Pension Fund
Manager and unit holders holding ten percent or more of the Sub-Fund's net assets.

The transactions with connected persons are carried out in the normal course of business, at contracted rates and terms determined in accordance with
the market norms.

Remuneration of the Pension Fund Manager is determined in accordance with the provisions of the provisions of VPS Rules, 2005 and the Trust Deed
respectively.

Remuneration payable to the Trustee is determined in accordance with the provisions of the Trust Deed.
 Details of the transactions with connected persons and balances with them, if not disclosed elsewhere in these financial statements are as follows:

June 30, 2019

13.1 Balances outstanding as at period end December 31, 2019 (Un-Audited) (Audited)
Equity Debt Money Gold Total Total
Sub-Fund Sub-Fund Market Sub-Fund
Sub-Fund
Al Meezan Investment Management Limited --------------------------------------------- (Rupees in '000) -------------------------------------------------
(Al Meezan) - Pension Fund Manager
Remuneration payable 5,865 3,646 3,269 116 12,896 11,045
Sindh Sales Tax and Federal Excise Duty
on management fee 762 474 425 15 1,676 1,435
Investments as at December 31, 2019: (Equity sub
fund: 260,077 units and Gold Sub Fund: 300,000 units)
as at June 30, 2019 (Equity sub fund: 260,077 units
and Gold Sub Fund: 300,000 units) 118,719 - - 41,356 160,075 137,344

Meezan Bank Limited (MBL)

Bank balance 64,168 408 9,154 10,692 84,422 41,165

Profit receivable on saving account 382 7 30 57 476 504

Central Depository Company of Pakistan

Limited (CDC) - Trustee
Trustee fee payable 322 200 180 6 708 632
Sindh Sales Tax on trustee fee payable 42 26 23 1 92 83
Deposits 100 100 100 - 300 300

Directors and Executives of the

Pension Fund Manager
Investments as at December 31, 2019: (Equity sub
fund: 1,009,425 units; Debt Sub Fund: 582,830 units;
Money Market Sub Fund: 181,573 units; and Gold Sub
Fund: 200,653 Units) as at June 30, 2019: (Equity sub
fund: 1,221,616 units; Debt sub fund: 459,033 units;
Money Market sub fund: 93,032 units; and Gold Sub
Fund : 226,401 units) 460,781 145,524 44,867 27,660 678,832 620,970

December 31,
13.2 Transactions during the period (Un-Audited) December 31, 2019 2018
Equity Debt Money Gold Total Total
Sub-Fund Sub-Fund Market Sub-Fund
Sub-Fund
Al Meezan Investment Management Limited --------------------------------------------- (Rupees in '000) -------------------------------------------------
(Al Meezan) - Pension Fund Manager

Remuneration for the period 29,381 20,929 18,016 714 69,040 70,978
Sindh Sales Tax on management fee 3,820 2,721 2,342 93 8,976 56

Meezan Bank Limited (MBL)

Profit on savings account 2,552 187 340 515 3,594 1,182

Term Deposit Receipt placed - 450,000 350,000 - 800,000 -
Profit on term deposit receipt - 15,645 12,168 - 27,813 -

Central Depository Company of Pakistan

Limited (CDC) - Trustee

Remuneration for the period 1,666 1,189 1,023 41 3,919 3,998

Sindh Sales Tax on trustee fee 217 155 133 5 510 521
CDS Charges for the period 64 70 3 - 137 108

Directors and Executives of the

Pension Fund Manager
Units issued (Equity Sub Fund: 908,975 units;
Debt Sub Fund: 1,158,187 units; Money Market
Sub Fund: 675,117 units; and Gold sub fund:
22,977 units) 318,133 276,678 159,971 3,272 758,054 103,041

Units redeemed / reallocated (Equity Sub Fund

1,121,166 units; Debt Sub Fund: 1,034,360 units;
Money Market Sub Fund: 586,576 units; Gold sub
fund: 48,725 units) 391,858 246,091 138,715 5,723 782,387 17,331

14 FAIR VALUE OF FINANCIAL INSTRUMENTS

‘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 in the principal or, in its
absence, the most advantageous market to which the Fund has access at that date.

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.

The fair value of financial assets and liabilities traded in active markets are based on the quoted market prices at the close of trading on the period end date. The quoted
market prices used for financial assets held by the Fund is current bid price.

A Financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing
service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm's length basis.

Investments on the Statement of Assets and Liabilities are carried at fair value. The Management is of the view that the fair value of the remaining financial assets and
liabilities are not significantly different from their carrying values since assets and liabilities are essentially short term in nature.

The Fund measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements:

• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities
• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable
• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

The fair value of traded investments is based on quoted market prices, and have been disclosed in note 5.
 The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy.

Carrying Amounts Fair Values

Note Amortised At fair value Financial Total Level 1 Level 2 Level 3 Total
cost through profit or liabilities
loss measured at
amortised
cost
December 31, 2019 --------------------------------------------------------------------------- (Rupees in'000) ----------------------------------------------------------------------------

Financial assets - measured at fair value

- Listed equity securities - 4,533,386 - 4,533,386 4,533,386 - - 4,533,386
- Sukuk certificates - 1,120,476 - 1,120,476 - 1,120,476 - 1,120,476
- 5,653,862 - 5,653,862
Financial assets not measured at fair value 14.1
Bank balances 4,082,765 - - 4,082,765
Investments
- Commercial papers 258,924 - - 258,924
- Term deposit 220,000 - - 220,000
Dividend receivable 1,209 - - 1,209
Deposits and other receivables 109,246 - - 109,246
Receivable against sale of investments 18,450 - - 18,450
Receivable against change of plan / change of fund
manager / issuance of units 224 - - 224
4,690,818 - - 4,690,818
4,690,818 5,653,862 - 10,344,680

Financial liabilities not measured at fair value 14.1

Payable to Al Meezan Investment Management
Limited - Pension Fund Manager - - 12,896 12,896
Payable to Central Depository Company of Pakistan
Limited - Trustee - - 708 708
Payable to auditors - - 256 256
Payable against purchase of investments - - 1,368 1,368
Payable against withdrawal / change of plan - - 11,380 11,380
Accrued expenses and other liabilities 11,261 11,261
- - 37,869 37,869

Carrying Amounts Fair Values

Note Investments Other Cash and cash Other payables Total Level 1 Level 2 Level 3 Total
receivables equivalents

June 30, 2019 --------------------------------------------------------------------------- (Rupees in'000) ----------------------------------------------------------------------------

Financial assets - measured at fair value

- Listed equity securities 3,921,054 - - - 3,921,054 3,921,054 - - 3,921,054
- Sukuk certificates 1,171,834 - - - 1,171,834 - 1,171,834 - 1,171,834
5,092,888 - - - 5,092,888
Financial assets not measured at fair value 14.1
Bank balances - - 3,306,722 - 3,306,722
Investments
- Commercial papers 370,899 - - - 370,899
- Term deposit 220,000 - - - 220,000
Dividend receivable - 15,260 - - 15,260
Deposits and other receivables - 83,095 - - 83,095
Receivable against sale of investments - 3,698 - - 3,698
Receivable against change of plan / change of fund
manager / issuance of units - 14,759 - - 14,759
590,899 116,812 3,306,722 - 4,014,433
5,683,787 116,812 3,306,722 - 9,107,321

Financial liabilities not measured at fair value 14.1

Payable to Al Meezan Investment Management
Limited - Pension Fund Manager - - - 11,045 11,045
Payable to Central Depository Company of Pakistan
Limited - Trustee - - - 633 633
Payable to auditors - - - 252 252
Payable against purchase of investments - - - 17 17
Payable against withdrawal / change of plan - - - 24,345 24,345
Accrued expenses and other liabilities 7,471 7,471
- - - 43,763 43,763

14.1 The Fund has not disclosed the fair values for these financial assets and financial liabilities, as these are either short term in nature or reprice periodically. Therefore, their carrying amounts
are reasonable approximation of fair value.

15 TAXATION

The income of the Fund is exempt from income tax under clause 57(3) (viii) of part I of the Second Schedule to the Income Tax Ordinance, 2001. Therefore, no provision has been made for
current and deferred taxation in these financial statements.

The Fund is also exempt from the provisions of section 113 (minimum tax) under clause 11A of Part IV to the Second Schedule of the Income Tax Ordinance, 2001. Accordingly, Supertax
and any other taxes introduced in Finance Act, 2015 is also not applicable on fund.
16 DATE OF AUTHORIZATION FOR ISSUE

February 10, 2020 by the Board of

This condesnsed interim financial information were authorised for issue on _____________________,
Directors of the Pension Fund Manager.

17 GENERAL

Figures have been rounded off to the nearest thousand rupees.

For Al Meezan Investment Management Limited

(Pension Fund Manager)

______________________ ______________________ ______________________

Chief Financial Officer Chief Executive officer Director
 DISCOVERING
NEW
OPPORTUNITIES
Annual Report
(AM1 rating by VIS & PACRA)
2019
Al Meezan Investment Management Ltd.
A subsidiary of Meezan Bank

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