MergedFile - AWT Investments

Director Report 1Q FY2021 (September’ 2020)

The Board of Directors of AWT Investments Limited the Management Company of AWT – Islamic Stock

Fund, AWT – Stock Fund, AWT – Income Fund, AWT – Islamic Income Fund and AWT – Asset Allocation

Fund is pleased to present the condensed Financial statements for the period ended September 30, 2020.

Stock market review-1Q 2021

During 1Q 2021, KSE100 recorded strong increase of 17.8% to close at 40,566, as the lifting of coronavirus

lockdown and revival of economic activity helped in improving broader economic indicators of the

country, thus boosting investors’ sentiments. Market showed 14% rebound in July, followed by 4.7%

increase in August and 1.3% decline in September. From its lows near 27,000 in March 2020, the index is

up almost 50%.

Foreigners remained net sellers in the market with outflow of $95m in 1Q. Among locals, banks were the

top sellers with net outflow of $53m followed by brokers with $18m outflow. Individuals, mutual funds

and insurance companies were top buyers with net inflows of $108m, $26m and $20m respectively.

Economic situation has started to improve with major indicators pointing towards improvement in growth

(upward revision in GDP growth in 2021 to2-3%) and stability on the external account situation (strength

in rupee against USD to around 165 compared to 168). One major positive on the economic front is big

increase in construction activities in the country which is reflected in 19% increase in local cement sales

during first quarter of this fiscal year (along with uptick in sales of steel and other ancillary industries) as

government construction package, amnesty scheme and lower interest rates have helped in bringing in

real estate developers to start housing projects all over the country. Second encouraging development is

tax revenue collections during the quarter with FBR collecting Rs1,004bn in1Q against the target of Rs

970bn. At the same time, inflation remains a big challenge for the government with September CPI coming

higher than expectations at 9%. Earlier in its monetary policy statement in September, SBP kept the policy

rate unchanged at 7% and revised its inflation target upside to 7-9% range for the current fiscal year as

massive rains in recent past has damaged crops and vegetable outputs. These rains have also caused

massive damage to roads and infrastructure especially in Karachi and other parts of Sindh province,

prompting the federal government to announce a huge package of Rs1.2 trillion for Karachi (spread over

three years).

In near term, local stock market may be impacted negatively by prevailing political situation in the country,

where the joint opposition has started its agitations against the government for failing to deliver on its

promises with key focus on rising inflation and high unemployment. In addition, market will be impacted

by global events such as US elections where Democrats party nominee Joe Biden is the favorite with

President Trump’s chances of reelection below 40%. As global equities are expected to remain volatile till

the US elections, we are likely to see more or less similar volatility in Pakistani market due to this event.

Directors' Report 1Q FY2021 September 2020

Majority of the listed sectors are expected to show improved performance in FY21 in terms of sales and

profits compared to 2020 which will start reflecting in stocks performance and overall performance of the

index in 2021. Given the improving fundamentals of many companies and attractive valuations of stocks,

near term upside target for the market (KSE100) is 43,000, with year-end June target near 46,000. While

downside risk is near 38,000.

Economic review-1Q 2021

During First Quarter of current fiscal year 2021, SBP kept the policy rate unchanged at 7%. Last downward

revision of 100bps was made in June 2020 with total 600bps decline in the policy rate from March-June

2020. Market interest rates showed upward trend with 10 and 5 year bond yields rising by over 100bps in

the secondary market to 9.75% and 9.13% respectively. This increase in long term yields is largely the

reflection of inflationary trend in the country, with monthly CPI of September at 9% and average 1Q CPI

at 8.84%. SBP has revised its inflation forecast for the year from around 7% to the range of 7-9% for the

fiscal year in its September monetary policy review. Food CPI remained in double digit during the quarter

with September number at 14.74%, while core inflation (non-food non-energy) increased by 5.5% on a

year on year basis in September 2020.

Exports during the quarter were down 0.65% to $5.47bn from $5.51bn in the previous year, while imports

were up 1% $11.31bn from $11.19bn. Trade deficit during 1Q was up 2.6% to $5.83bn from $5.68bn.

Within exports, textiles exports were up 2.6% to $3.47bn, which were 63% of the country’s total exports

during the quarter.

Current account remained in surplus in first two months of current fiscal year at $805m (August surplus

of $297m and July $508m). Major contributing factor in CA surplus is strong growth in remittances which

increased to $4.86bn in two months from $3.71bn in the corresponding previous year’s two months.

Rupee has strengthened 1.4% against USD in 1Q to 165.7 compared to June close of 168.05. This occurred

because of the weakening of the USD in the international market and fall in international oil prices coupled

with current account surplus position of the country. In addition, forex reserves increased to $19.5bn in

1Q from $18.8bn in June 2020.

FBR has reported net tax revenue figure of Rs.1,004 bn, exceeding the target of Rs970bn by a margin of

Rs34bn. This growth in tax collection is a reflection of pickup in economic activity post lifting of lockdown

in the country.

Large scale manufacturing index has increased 3.6% in first two month (July-August 2020) compared to

the previous year. Major growth is being recorded in food/beverage, pharma, mineral products, chemicals

and textiles; while automobiles, iron & steel and fertilizers were in negative. GDP growth forecast

remained on the lower side around 2% for the current fiscal year, with likely upward revision to 3%

provided there is no lockdown and the country is remained unaffected by coronavirus related threats.

Money market review-1Q 2021

During 1Q FY’ 2021, SBP kept the policy rate unchanged at 7%. Average CPI during the quarter was

recorded at 8.84%, with September CPI at 9%.

During period, short term TBILL yields in the secondary market closed at 7.10% , 7.16% and 7.29% in 3m,

6m and 12m tenors respectively while in the longer tenor PIBs yields increased by approximately 100bps

on 3 year, 5 year and 10 year to 8.29%, 9.13% and 9.75% respectively.

Review of fund performance:

AWT- Islamic Stock Fund

During 1Q FY21, Islamic Stock Fund has generated a return of 13.38% compared to KMI-30 benchmark

return of 17.72%. Top outperforming stocks in 1QFY21 in the portfolio were MEBL, NML, PKGS, INIL,

SEARL, NRL, FCEPL and MLCF. While major negative contribution in total return came from PPL, Netsol,

FFC and Engro. Major holding which were offloaded during the 1QFY21 were FFC and ENGRO. The fund

increased/added its allocation to textiles (NML), cement (MLCF), Food (FECPL), oil & gas (PPL) and

technology (NETSOL) during 1Q. Net asset of the fund increased to PKR 107.14mn in the 1QFY20 compared

to PKR 80.71mn by the end of FY20. As on Sep30, 2020, exposure in equities was 88.21%. The fund’s Net

Asset Value (NAV per unit) on September 30, 2020 was PKR 90.08.

AWT– Stock Fund

During 1Q FY21, SF delivered a return of 10.73% compared to KSE-100 index increase of 17.87%. Top

outperforming stocks in 1QFY21 in the portfolio were NBP, NML, GATM, SEARL, NCL, HBL and MEBL. While

major negative contribution in total return came from PPL, Netsol, FFC and BAFL. Major holding which

were offloaded during the 1QFY21 were FFC and ENGRO. The fund increased/added its allocation in banks

(HBL), cement (MLCF), Food (FECPL), oil & gas (PPL) and technology (NETSOL) during 1Q. Net asset of the

fund increased to PKR 109.19mn by September 2020 from PKR 60.63mn as of June end 2020. As on

September 30, 2020, exposure in equities was 85.48% and bank placement at 14.13%. The fund’s Net

Asset Value (NAV per unit) on September 30, 2020 was PKR 90.51.

AWT–Income Fund During 1Q FY21, Income fund delivered an annualized yield of 4.41% compared to its benchmark return

of 7.09%, thus showing an underperformance of 268bps. Benchmark for income fund category is 6m

Kibor. Lower returns of the fund was due valuation loss on PIBs (bond portfolio) as secondary market rates

increased by around 100bps during the quarter. Majority of funds in the income fund category with

exposure on long term government securities underperformed the benchmark in 1Q. As of quarter end,

Net Assets of the fund stood at PKR 1,940 million, showing 13.78% decline from June 30, 2020 level of

PKR 2,250 million. The weighted average time to maturity of the portfolio was at 114 days. The fund’s

exposure in Govt. Securities on September 30, 2020 stood at 13.57% of net asset, while exposure in

TFC/Sukuks was 5.51% and cash in bank at 56.42%, spread transactions (RBFS) was 26.14% of net assets

respectively. The fund’s Net Asset value (NAV per unit) on September 30, 2020 was PKR 107.81.

Fund Stability Rating

The Fund stability rating 'A+ (f)' assigned by The Pakistan Credit Rating Agency Limited (PACRA) to the

Fund remains unchanged

AWT–Islamic Income Fund During 1Q FY21, Islamic Income Fund delivered an annualized yield of 6.79% compared to its benchmark return of 4.44% with outperformance by 235 bps. On September 30, 2020, Net Assets of the fund stood at PKR 289.30 million, showing 5.23% increase from June 30, 2020 level of PKR 274.91 million. The weighted average time to maturity of the portfolio stands at 27days. Most of the assets of the fund are held in Sharia compliant banking deposits. The fund’s Net Asset value (NAV per unit) on September 30, 2020 was PKR 105.15. Fund Stability Rating

The Fund stability rating 'A+ (f)’ assigned by The Pakistan Credit Rating Agency Limited (PACRA) to the

Fund remains unchanged.

AWT – ASSET ALLOCATION FUND

As it is apparent that AAF is not financially viable anymore, the Board of directors have taken the decision

to convert the fund into “Money Market Fund”. Based on the fact that the fund is not able to meet its Net

assets requirement of Rs.100 million, the fund only has Net assets of Rs.6 million which does not meet

the relevant pre requisite.

MANAGEMENT QUALITY RATING

The JCR-VIS Credit Rating Company Limited has reaffirmed Management Quality Rating of “AM3+” to AWT

Investments Limited on April 24, 2020. The rating denotes high management quality of the Management

Company.

ACKNOWLEDGEMENT

The Board of Directors of the Management Company is thankful to the Securities and Exchange

Commission of Pakistan for their valuable support, assistance and guidance. The Board also wish to

express gratitude to the employees of the Management Company and the Trustee for their dedication

and hard work and the unit holders for their confidence in the Management.

Rawalpindi: October 29, 2019

Chief Executive Officer Director

AWT Income Fund

AWT

INCOME FUND

AWT Income Fund

FUND’S INFORMATION

Management Company AWT Investments Limited 3rd Floor, AWT Plaza I.I Chundrigar Road, Karachi

Board of Directors Lt. General Najib Ullah Khan (Retd.) Chairman Maj. General Akhtar Iqbal (Retd.) Director Mr. Tariq Iqbal Khan Director Mr. Malik Riffat Mehmood Director Mr. Raheel Qamar Director Mr. Salman Haider Sheikh Chief Executive Officer

Chief Financial Officer & Mr. Shehzad Dhedhi Company Secretary

Audit Committee Mr. Tariq Iqbal Khan Chairman Maj. General Akhtar Iqbal (Retd.) Member Mr. Malik Riffat Mehmood Member

HR Committee Maj. General Akhtar Iqbal (Retd.) Chairman Mr. Tariq Iqbal Khan Member Mr. Salman Haider Sheikh Member

Trustee Central Depository Company of Pakistan Limited DC House, 99B, Block-B, SMCHS, Main Shahra-e-Faisal, Karachi

Auditors KPMG Taseer Hadi & Co. Chartered Accountants Sheikh Sultan Trust Building No. 2 Beaumont Road Karachi. 75530

Legal Advisors Rizwan Faiz Associates Apartment No. 011, Tariq Heights,

Street No. 73, Sector F-11/1, Islamabad, 44000

Bankers Allied Bank Limited Bank Al-Habib Limited Bank Alfalah Limited Faysal Bank Limited Habib Bank Limited UBL Bank Limited Summit Bank Limited Askari Bank Limited Samba Bank Limited Al-Baraka Bank (Pakistan) Limited JS Bank Limited Silk Bank Limited U Micro Finance Bank Limited National Bank of Pakistan

Rating A+(f) by PACRA

AWT Income FundCONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES AS AT SEPTEMBER 30, 2020

30 September,2020 30 June,2020Note

Assets

Bank balances 4 1,600,217 915,586 Investments 5 370,262 1,393,837 Prepayments, deposits and other receivables 6 64,665 25,636

Total assets 2,035,144 2,335,059

Liabilities

Payable to AWT Investments Limited - Management Company 7 20,554 11,946 Payable to the Central Depository Company of Pakistan Limited - Trustee 8 621 172 Annual fee payable to the Securities and Exchange Commission of Pakistan 9 469 363 Accrued expenses and other liabilities 7 73,239 72,979

Total liabilities 94,882 85,460

Net assets 1,940,262 2,249,599

Unit holders' fund (as per statement attached) 1,940,262 2,249,599

Contingencies and Commitments 8

Number of units in issue 9 17,997,036 21,099,226

Net assets value per unit 107.81 106.62

The annexed notes from 1 to 14 form an integral part of these condensed interim financial statements.

_________________________ ___________________Chief Executive Officer Director

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

For AWT Investments Limited

--------------- (Number) --------------

--------------- (Rupees) --------------

(Management Company)

____________________Chief Financial Officer

AWT Income FundCONDENSED INTERIM INCOME STATEMENT (UN-AUDITED)

FOR THE PERIOD ENDED SEPTEMBER 30, 2020

2020 2019

NoteIncomeReturn / mark-up calculated using the effective interest method:- Bank balances at amortised cost 16,295 6,628 - Clean placements at amortised cost - 1,312 - Term deposit receipts - Held at amortised cost 2,515 312 - Government Securities - Held at fair value through profit or loss 20,781 - - Sukuk certificates / Term Finance Certificates - Held at fair value through profit or loss 1,696 - - Commercial Paper - Held at amortised cost 2,568 - - Certificate of Musharika - Held at amortised cost - - Net realised gain on sale of investments (13,226) 1,664 Gain on future transaction 5,306 842 Net unrealised gain on revaluation of investments at fair value through profit or loss (3,206) (5,127) Total income 32,728 5,631

ExpensesRemuneration of the Management Company 5,299 1,971 Sindh Sales Tax on the Management Company's remuneration 689 256 Remuneration of the Trustee 397 197 Sindh Sales Tax on Trustee's remuneration 52 26 Annual fee to the Securities and Exchange Commission of Pakistan 9 106 58 Selling, marketing and back office expenses 2,620 123 NCCPL fee 88 90 Annual listing fee 7 7 Stability rating fee 86 - Auditors' remuneration 72 55 Settlement and bank charges 967 22

Total operating expenses 10,383 2,805

Net income from operating activities 22,345 2,826

Provision for Sindh Workers' Welfare Fund 7.2 (449) -

Net income for the quarter before taxation 21,896 2,826

Taxation 10 - -

Net income for the quarter 21,896 2,826


____________________ ____________________Chief Executive Officer Director


Chief Financial Officer____________________

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


AWT Income FundCONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)FOR THE PERIOD ENDED SEPTEMBER 30, 2020

2020 2019

Net income for the year after taxation 21,896 2,826

Other comprehensive income for the year - -

Total comprehensive income for the year 21,896 2,826


_____________________ ____________________Chief Executive Officer Director

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




AWT Income FundCONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED)

FOR THE PERIOD ENDED SEPTEMBER 30, 2020

2020 2019Note

CASH FLOWS FROM OPERATING ACTIVITIESNet income for the year before taxation 21,896 2,826

Adjustments for:Return / mark-up on; - Bank balances (16,295) (6,628) - Term deposit receipt (2,515) - - Government securities (20,781) - - Term finance certificates / sukuks (1,696) - - Commercial Paper - Held at amortized cost (2,568) - Dividend Income on future transaction (5,306) (842) Net unrealised gain on revaluation of investments at fair value through profit or loss 3,206 (1,664) Amortisation of deferred formation costs - 5,127 Provision for Sindh Workers Welfare Fund 449 123 Net cash used in operating activities (45,505) (3,884)

(Increase) / decrease in assetsInvestments - net 972,538 (119,955) Other receivables 10,500 (18)

983,038 (119,973) Increase / (decrease) in liabilitiesPayable to the Management Company 17,295 136 Payable to the Central Depository Company of Pakistan Limited - Trustee 461 6 Annual fee payable to the Securities and Exchange Commission of Pakistan (300) (243) Accrued expenses and other liabilities 29,057 146

46,513 45

Return on bank balances and placements received (2,348) 5,082 Return on government / debt securities received 7,611 618 Net cash (used in) / generated from operating activities 1,011,205 (115,286)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from issuance of units 355,507 - Payment on redemption of units (687,387) (7,805) Dividend paid - - Dividend Income on future transaction 5,306 - Net cash flows from financing activities (326,574) (7,805) Net Increase / (decrease) in cash and cash equivalents 684,631 (123,091)

Cash and cash equivalents at the beginning of the year 915,586 262,771 Cash and cash equivalents at the end of the year 4 1,600,217 139,680


_____________________ _____________________Chief Executive Officer Director


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

For AWT Investments Limited(Management Company)

AWT Income FundCondensed Interim Statement of Movement in Unit Holders' Fund (Unaudited) FOR THE PERIOD ENDED SEPTEMBER 30, 2020

Note

Net assets at beginning of the year 2,328,264 (78,665) 2,249,599 1,053,352 (75,617) 977,735

Issuance of 34,020,071 units (2019: 6,242,630 units)- Capital value 353,954 - 353,954 3,593,880 - 3,593,880 - Element of income 2,201 - 2,201 274,393 - 274,393 Total proceeds on issuance of units 356,155 - 356,155 3,868,273 - 3,868,273

Redemption of 22,175,985 units (2019: 10,855,024 units)- Capital value (684,656) - (684,656) (2,342,671) - (2,342,671) - Element of loss (2,732) - (2,732) (115,553) (98,460) (214,013) Total payments on redemption of units (687,387) - (687,387) (2,458,224) (98,460) (2,556,684)

Total comprehensive income for the year - 21,896 21,896 - 290,388 290,388Distribution during the period - - - (135,137) (194,976) (330,113)

- 21,896 21,896 (135,137) 95,412 (39,725)

Net assets as at end of the year 1,997,031 (56,769) 1,940,262 2,328,264 (78,665) 2,249,599

Undistributed (loss) / income brought forward:

- Realized (loss) (128,950) (153,629) - Unrealized (loss) / income 5,201 (777)

(123,749) (154,406) Accounting income available for distribution:

Relating to capital gains 5,306 13,700 Excluding capital gains 16,590 16,956

21,896 30,656

Distribution during the year 13 - 2,826

Undistributed loss carried forward (101,853) (120,924)

Undistributed loss carried forward comprises of:- Realized loss (16,433) (128,950) - Unrealized income / (loss) (3,206) 5,201

(19,639) (123,749)

(Rupees) (Rupees)

Net assets value per unit as at the beginning of the year 109.89 105.64

Net assets value per unit as at the end of the year 107.81 109.89


____________________ ______________________ ________________Chief Executive Officer Chief Financial Officer Director


30 September 2020 30 June 2020

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

Value Undistributed income

Total Value Undistributed income

Total

AWT Income FundNotes to the Financial StatementsFor the year ended 30 Sep 2020

1. LEGAL STATUS AND NATURE OF BUSINESS

1.1 AWT - Income Fund (Formerly Primus Investment Management Limited - Income Fund) (the Fund) has beenestablished under a Trust Deed, dated June 20, 2012, between AWT Investments Limited incorporated underthe repealed Companies Ordinance, 1984 (now Companies Act, 2017) and the Central Depository Companyof Pakistan Limited (CDC) as the Trustee, also incorporated under the repealed Companies Ordinance, 1984(now Companies Act, 2017). Securities and Exchange Commission of Pakistan (SECP) registered the fund asa Notified Entity on August 01, 2012, under regulation 44 of the Non Banking Finance Companies and Notified

Entities Regulations, 2008 (NBFC Regulations).

1.2 During the year ended June 30, 2014, the Fund was re-categorized from money market category to incomefund category. SECP has approved the application for amendments related to above change in the firstsupplemental offering document via letter dated April 16, 2014.

On July 26, 2017, SECP gave its approval for the change of the name of the Management Company fromPrimus Investment Management Limited to AWT Investments Limited. The change was made pursuant to theacquisition 70% shares of the Management Company by Army Welfare Trust (AWT). On August 02, 2018,AWT acquired further 30% shares of the Management Company from Pak Brunei Investment CompanyLimited. Now the Management Company is a wholly owned subsidiary of AWT

1.3 The Management Company of the Fund has been licensed by the SECP to undertake Asset ManagementServices and Investment Advisory Services as a Non-Banking Finance Company under The Non-BankingFinance Companies (Establishment and Regulation) Rules, 2013 (NBFC Rules). The registered office ofManagement Company at 3th Floor, AWT Plaza, I.I Chundrigar Road, Karachi.

1.4 The Fund offers units for public subscription on a continuous basis. The units are transferable and can also beredeemed by surrendering them to the Fund. The Fund is listed on the Pakistan Stock Exchange Limited. Asper the offering document, the Fund shall invest in debt securities including government securities,commercial papers, certificate of musharika and other money market instruments.

The Scheme is required to invest in cash and near cash instruments which include cash in bank accounts(excluding term deposits receipts) treasury bills not exceeding 90 days maturity, investment schemes specifiedby the SECP. The objective of the Fund is to generate competitive risk adjusted returns by investing in short,medium and long-term Shariah Compliant fixed income government securities up to a maximum limit of 100%with no minimum limit, non-traded securities including reverse repo, bank deposits, certificates of investments(COI), certificate of musharaka (COM) and anything over six months maturity which is not marketable securityup to a maximum limit of 15% with no minimum limit. The Scheme can also invest in term deposits receipts,term finance certificates/sukuks, letter of placements, certificates of deposits, COM with financial institutionsup to 75% with no minimum limit, commercial paper upto 75% with no minimum limit. The Scheme can alsoinvest outside Pakistan subject to approval of SECP (maximum limit being 30% or cap of USD 15 million withno minimum limit.

1.5 Title to the assets of the Fund is held in the name of Central Depository Company of Pakistan Limited as aTrustee of the Fund.

2 BASIS OF PREPARATION

The transactions undertaken by the Fund are in accordance with the Shariah guidelines issued by theShariah advisor and are accounted for on substance rather than the form prescribed by the above referredguidelines. This practice is being followed to comply with the requirements of approved accountingstandards as applicable in Pakistan.

2.1 Statement of Compliance

This condensed interim financial information has been prepared in accordance with the approved accounting

standards as applicable in Pakistan for interim financial reporting. Approved accounting standards comprise of

such International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board as are notified under the repealed Companies Ordinance, 1984 (now Companies Act, 2017), the

requirements of the Trust Deed, the NBFC Rules, the NBFC Regulations and the directives by the SECP. Wherever the requirements of the Trust Deed, the NBFC Rules, the NBFCRegulations or the directives issued

by the SECP differ with the requirements of the IFRSs , the requirements of the Trust Deed, theNBFC Rules, the NBFC Regulations or the directives issued by the SECP prevail.

The disclosures made in this condensed interim financial information have, however, been limited based on the3. requirements of the International Accounting Standard 34 and should be read in conjunction with the annual

published audited financial statements of the Fund for the year ended June 30, 2020

3.1 The accounting policies and methods of computation adopted in the preparation of this condensed interim financial information are the same as those applied in preparation of the financial statements of the Fund for the

year ended June 30, 2020, except for the following:

3.1.1 Reclassification of financial assetsDuring the current period IFRS-9 became applicable, according to the standard, all equity investments are to be measured at fair value in the statement of financial position with value change recognized in profit or loss. Standard also retains an option in respect of equity investments (other than held for trading) for which the entity may elect to report value change in 'other comprehensive income'..However, the fund is not maintaining investment portfolio of 'available for sale' and considered not to be relevant in these condensed interim financialstatements

4. BANK BALANCES Note 30 Sep 2020 30 Jun 2020

Profit and loss sharing accounts 4.1 1,600,217 915,586

4.1 These accounts carry profit rates ranging from 8% to 12% (30 June 2020: 8% to 12% ) per

annum.

5. INVESTMENTS Note 30 Sep 2020 30 Jun 2020

Investments by Category

At fair value through profit or loss

Government securities

- Pakistan Investment Bonds 5.1 23,951 311,375

- Market Treasury Bills 5.2 239,360 733,408

Term finance certificates and sukuk bonds

- Term Finance Certificate - unlisted 5.3 50,000 50,000

- Sukuk certificate - privately placed 5.4 32,594 35,350

- Sukuk certificate - listed 5.5 5,607 6,568

- Sukuk certificate - unlisted 5.6 18,750 18,750

370,262 1,155,451

Listed equity securities 5.7 - -

At amortised cost

Term deposit receipts 5.8 - 175,000

Commercial papers 5.8 - 63,386

Certificate of musharika - -

370,262 1,393,837

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)

1

0,0

00

5

0,0

00

5

0,0

00

-

2.5

8

-

Co

st

as

at

30

Se

p 2

02

0

5

0,0

00

5.3

.1T

he

se c

arr

ies

pro

fit a

t six

mo

nth

s K

IBO

R p

lus

1.5

% r

esu

ltin

g in

pro

fit r

ate

of

9.1

7%

as

at t

he

ye

ar

en

d (

30

Ju

ne

20

20

: 9.1

7%

) p

er

an

nu

m a

t th

e y

ea

r e

nd

. Th

e in

stru

me

nt i

s a

pe

rpe

tua

l in

stru

me

nt.

Inte

rest

is p

aya

ble

sem

i-a

nn

ua

lly. T

he

se c

ert

ifica

tes

are

un

secu

red

. Th

ese

ce

rtifi

cate

s a

re n

ot y

et q

uo

ted

by

MU

FA

P a

nd

are

va

lue

d a

t th

e a

mo

un

t dis

bu

rse

d, w

hic

h v

alu

e is

no

t exp

ect

ed

to b

e s

ign

ifica

ntly

diff

ere

nt f

rom

the

fa

ir v

alu

e. T

he

en

ity a

nd

the

term

fin

an

ce c

ert

ifica

tes

ha

ve b

ee

n r

ate

d 'A

A+

' an

d 'A

A' r

esp

ect

ive

ly b

y P

AC

RA

.

5.4

Su

ku

k C

ert

ific

ate

s (

pri

vate

ly p

lac

ed

)C

arr

yin

g v

alu

eM

ark

et

valu

eU

nre

alis

ed

Ma

rke

t va

lue

Ma

rke

t va

lue

be

fore

as

at

30

Se

pg

ain

/ (l

os

s)

as

% o

f n

et

as

% o

f re

valu

ati

on

as

at

20

20

as

se

tsc

ap

ita

l3

0 J

un

e 2

02

0

Asp

in P

ha

rma

(P

riva

te)

Lim

ited

(F

ace

va

lue

of

Rs.

10

0,0

00

/- e

ach

)5

00

32

,85

0

32

,59

4

(2

56

)

1

.68

-

Te

no

rH

old

ing

at

the

en

d o

f th

e

pe

rio

d

----

----

----

----

----

----

----

----

---

(Nu

mb

er

of

Ce

rtif

ica

tes

) --

----

----

----

----

----

----

----

----

-

Te

no

r

----

----

----

----

----

----

----

----

---

(Nu

mb

er

of

Ce

rtif

ica

tes

) --

----

----

----

----

----

----

----

----

-

----

----

----

----

----

----

---

(Ru

pe

es

in '0

00

) --

----

----

----

----

----

----

-

Ho

ldin

g a

t th

e e

nd

of

the

p

eri

od

----

----

----

----

----

----

---

(Ru

pe

es

in '0

00

) --

----

----

----

----

----

----

-

Ho

ldin

g a

t th

e e

nd

of

the

p

eri

od

----

----

----

----

----

----

----

----

---

(Nu

mb

er

of

Ce

rtif

ica

tes

) --

----

----

----

----

----

----

----

----

---

----

----

----

----

----

----

- (R

up

ee

s in

'00

0)

----

----

----

----

----

----

---

Ho

ldin

g a

t th

e e

nd

of

the

p

eri

od

----

----

----

----

----

----

----

----

---

(Nu

mb

er

of

Ce

rtif

ica

tes

) --

----

----

----

----

----

----

----

----

-

----

----

----

----

----

----

---

(Ru

pe

es

in '0

00

) --

----

----

----

----

----

----

-

50

0

3

28

50

32

59

4(2

56

)

2

-

C

os

t a

s a

t 3

0 S

ep

20

20

32

,59

4

5.4

.1T

he

se c

arr

ies

pro

fit a

t th

ree

mo

nth

s K

IBO

R p

lus

1.5

%. A

t th

e y

ea

r e

nd

pro

fit r

ate

wa

s 9

.65

% (

30

Ju

ne

20

20

: 9.6

5%

) p

er

an

nu

m. I

nte

rest

is p

aya

ble

qu

art

erl

y w

hile

the

pri

nci

pa

l is

pa

yab

le q

ua

rte

rly

in tw

en

ty e

qu

al

inst

allm

en

ts o

f R

s. 2

.5 m

illio

n, s

tart

ing

fro

m th

e f

ifte

en

th m

on

th o

f th

e is

sue

(i.e

01

Ma

rch

20

19

). T

he

se c

ert

ifica

tes

are

se

cure

d a

ga

inst

a r

an

kin

g c

ha

rge

on

all

pre

sen

t an

d f

utu

re f

ixe

d a

sse

ts (

lan

d, b

uild

ing

, pla

nt a

nd

ma

chin

ery

) o

f th

e c

om

pa

ny

incl

usi

ve o

f 1

5%

ma

rgin

on

the

issu

e a

mo

un

t. T

he

se c

ert

ifica

tes

are

va

lue

d a

t th

e r

ate

qu

ote

d b

y M

UF

AP

. Th

e e

ntit

y a

nd

the

su

kuk

inst

rum

en

t ha

ve b

ee

n r

ate

d a

s 'A

' re

spe

ctiv

ely

by

the

VIS

.

5.5

Su

ku

k c

ert

ific

ate

- li

ste

dC

arr

yin

g v

alu

eM

ark

et

valu

eU

nre

alis

ed

Ma

rke

t va

lue

Ma

rke

t va

lue

be

fore

as

at

30

Se

pg

ain

/ (l

os

s)

as

% o

f to

tal

as

% o

f n

et

reva

lua

tio

n a

s a

t2

02

0in

ves

tme

nts

as

se

ts3

0 J

un

e 2

02

0

Ha

sco

l pe

tro

leu

m L

imite

d (

Fa

ce v

alu

e o

f R

s. 5

00

0/-

ea

ch)

3,8

00

6

,72

8

6

,56

8

(

16

0)

0.2

9

-

Co

st

as

at

30

Se

p 2

02

06

,56

8

5.5

.1T

his

ca

rrie

s p

rofit

at t

hre

e m

on

ths

KIB

OR

plu

s 1

.5%

re

sulti

ng

in p

rofit

ra

te o

f 1

2.6

1%

(3

0 J

un

e 2

02

0: 1

2.6

1%

) p

er

an

nu

m a

t th

e y

ea

r e

nd

an

d w

ill m

atu

re o

n 7

Ja

nu

ary

20

22

. In

tere

st is

pa

yab

le q

ua

rte

rly

wh

ile th

e p

rin

cip

al

is a

lso

pa

yab

le q

ua

rte

rly

at t

we

nt e

qu

al p

rin

cip

al i

nst

allm

en

ts o

f R

s. 0

.95

mill

ion

. Th

ese

ce

rtifi

cate

s a

re s

ecu

red

ag

ain

st f

irst

pa

ri-p

asu

ch

arg

e o

ver

spe

cific

de

po

rts

an

d r

eta

il o

utle

ts o

f th

e c

om

pa

ny

incl

usi

ve o

f a

25

%m

arg

in. T

he

se c

ert

ifica

tes

at t

he

ye

ar

en

d a

re v

alu

ed

at t

he

ra

te q

uo

ted

by

MU

FA

P. T

he

en

tity

an

d th

e s

uku

k in

stru

me

nt h

ave

be

en

ra

ted

as

'BB

B+

' an

d 'B

BB

-' re

spe

ctiv

ely

by

the

VIS

.

5.6

Su

ku

k c

ert

ific

ate

- u

nlis

ted

C

arr

yin

g v

alu

eM

ark

et

valu

eU

nre

alis

ed

Ma

rke

t va

lue

Ma

rke

t va

lue

be

fore

as

at

30

Se

pg

ain

/ (l

os

s)

as

% o

f to

tal

as

% o

f n

et

reva

lua

tio

n a

s a

t2

02

0in

ves

tme

nts

as

se

ts

30

Ju

ne

20

20

TP

L T

rakk

er

Lim

ited

(F

ace

va

lue

of

Rs.

1,0

00

,00

0/-

ea

ch)

25

2

0,2

31

1

8,7

50

(1

,48

1)

0.9

7

-

Co

st

as

at

30

Se

p 2

02

01

8,7

50

5.6

.1T

his

ca

rrie

s p

rofit

at o

ne

ye

ar

KIB

OR

plu

s 3

% r

esu

ltin

g in

pro

fit r

ate

of

12

.71

% (

30

Ju

ne

20

20

: 12

.71

%)

pe

r a

nn

um

at t

he

ye

ar

en

d a

nd

will

ma

ture

on

13

Ap

ril 2

02

1. I

nte

rest

is p

aya

ble

qu

art

erl

y w

hile

pri

nci

pa

l will

be

pa

yab

le s

em

i-a

nn

ua

lly in

fo

ur

eq

ua

l pri

nci

pa

l in

sta

llme

nts

of

Rs.

6.2

5 m

illio

n s

tart

ing

fro

m O

cto

be

r 2

01

9. T

he

se c

ert

ifica

tes

are

se

cure

d a

ga

inst

55

mill

ion

ord

ina

ry s

ha

res

of

TP

L P

rop

ert

ies

limite

d o

wn

ed

by

the

co

mp

an

y,ch

arg

e b

y w

ay

of

hyp

oth

eca

tion

of

Rs.

75

0 m

illio

n (

incl

usi

ve o

f 2

0%

ma

rgin

) o

ver

the

hyp

oth

eca

ted

ass

ets

in f

avo

ur

of

the

tru

ste

e a

nd

a r

an

kin

g c

ha

rge

ra

nki

ng

su

bo

rdin

ate

an

d s

ub

serv

ien

t to

the

ch

arg

e in

fa

vou

r o

f th

ee

xist

ing

cre

dito

rs. T

he

se c

ert

ifica

tes

at t

he

ye

ar

en

d a

re v

alu

ed

at t

he

ra

te q

uo

ted

by

MU

FA

P. T

he

en

tity

an

d th

e te

rm f

ina

nce

ce

rtifi

cate

s h

ave

be

en

ra

ted

as

'A-'

an

d 'A

+' r

esp

ect

ive

ly b

y P

AC

RA

.

5.7

Lis

ted

eq

uit

y s

ec

uri

tie

s -

At

fair

va

lue

th

rou

gh

pro

fit

or

los

s Ho

ldin

g a

t th

e b

eg

inn

ing

o

f th

e p

eri

od

Ac

qu

ire

d d

uri

ng

the

pe

rio

dS

old

du

rin

g

the

pe

rio

dH

old

ing

at

the

e

nd

of

the

p

eri

od

Pe

rce

nta

ge

of

tota

l va

lue

of

inve

stm

en

ts (

%)

Pe

rce

nta

ge

of

ne

t a

ss

ets

(%

)

Sh

are

s o

f lis

ted

co

mp

an

ies

- fu

lly p

aid

up

ord

ina

ry s

ha

res

of

Rs.

10

ea

ch u

nle

ss s

tate

d o

the

rwis

e.

EN

GIN

EE

RIN

G S

EC

TO

RA

mre

li S

tee

ls L

imite

d-

21

,00

0

(21

,00

0)

-

0.0

0%

0.0

0%

Inte

rna

tion

al I

nd

ust

rie

s L

imite

d1

1,0

00

(1

1,0

00

)

-

0

.00

%0

.00

%In

tern

atio

na

l Ste

els

Lim

ited

79

,50

0

(74

,00

0)

5,5

00

0

.11

%0

.01

%M

ug

ha

l Iro

n &

Ste

el I

nd

ust

rie

s L

imite

d1

25

,00

0

(1

25

,00

0)

-

0

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%0

.00

%-

C

EM

EN

T S

EC

TO

R-

C

he

rat C

em

en

t Co

mp

an

y L

imite

d-

12

,00

0

(12

,00

0)

-

0.0

0%

0.0

0%

D.G

. Kh

an

Ce

me

nt C

om

pa

ny

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ited

-

1

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00

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3,5

00

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5

00

0.0

1%

0.0

0%

Fa

uji

Ce

me

nt C

om

pa

ny

Lim

ited

-

1

56

,00

0

(1

46

,00

0)

1

0,0

00

0

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%

----

----

----

----

----

----

----

----

----

----

--N

um

be

r o

f s

ha

res

----

----

----

----

----

----

----

----

----

----

--

----

----

----

----

----

----

----

----

---

(Nu

mb

er

of

Ce

rtif

ica

tes

) --

----

----

----

----

----

----

----

----

---

----

----

----

----

----

----

- (R

up

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'00

0)

----

----

----

----

----

----

---

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ldin

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t th

e e

nd

of

the

p

eri

od

----

----

----

----

----

----

----

----

---

(Nu

mb

er

of

Ce

rtif

ica

tes

) --

----

----

----

----

----

----

----

----

---

----

----

----

----

----

----

- (R

up

ee

s in

'00

0)

----

----

----

----

----

----

---

Ho

ldin

g a

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e e

nd

of

the

p

eri

od

Lu

cky

Ce

me

nt L

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0

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ap

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ea

f C

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58

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ion

ee

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em

en

t Lim

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57

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0.0

0%

Po

we

r C

em

en

t Lim

ited

2,1

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45

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00

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0.9

8%

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FE

RT

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ER

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OR

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En

gro

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ited

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2

53

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0

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53

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-

0

.00

%0

.00

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ng

ro C

orp

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tion

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00

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0.0

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0.0

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Fa

uij

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rtili

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Co

mp

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0

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au

ji F

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ilize

r B

in Q

asi

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1

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he

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e C

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0

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V

AN

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TI &

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TE

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Ne

tSo

l Te

chn

olo

gie

s L

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RG

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an

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4

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45

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0

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RE

FIN

ER

Y-

A

ttock

Re

fine

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atio

na

l Re

fine

ry L

imite

d5

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5,0

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2

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0

0.0

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0.0

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Pa

kist

an

Re

fine

ry L

imite

d6

92

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0

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4,0

00

)

5

98

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0

3

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C

OM

ME

RC

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BA

NK

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B

an

k o

f P

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1,0

49

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0

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49

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0)

-

0.0

0%

0.0

0%

Ha

bib

Ba

nk

Lim

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47

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0

(35

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0)

11

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0

0.4

4%

0.0

3%

Na

tion

al B

an

k o

f P

aki

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7 ACCRUED EXPENSES AND OTHER LIABILITIES Note 30 Sep 2020 30 Jun 2020

Federal Excise Duty 7.1 20,813 20,813 Provision of Sindh Worker Welfare Fund (SWWF) 7.2 19,585 13,210 Auditors' remuneration payable 264 221 Dividend payable 9,105 3,981 Payable against redemption of units - - Printing and stationary expenses 20 25 Withholding tax payable 20,781 4,906 Other payable 2,670 577

73,239 43,733

7.1 As per the requirements of the Finance Act, 2013, Federal Excise Duty (FED) at the rate of 16 percent on the remuneration of theManagement Company has been applied effective from June 13, 2013. The Management Company is of the view that since theremuneration is already subject to the provincial sales tax, further levy of FED may result in double taxation, which does not appear tobe the spirit of the law, hence, a petition was collectively filed by the Mutual Fund Association of Pakistan with the Sindh High Court(SHC) on September 04, 2013. While disposing the above petition through order dated July 16, 2016, the SHC declared the saidprovisions to be ultra vires and as a result no FED is payable with effect from July 01, 2011. However, the tax authorities subsequentlyfiled appeal against the decision of the SHC in the Supreme Court of Pakistan, which is pending for the decision.

Furthermore, the Finance Act 2016 also introduced an amendment to the Federal Excise Act, 2005 whereby FED was withdrawn onservices of different industries including Non-Banking Financial Institutions, which are already subject to provisional sales tax. Thisamount is payable to the Management Company for onward payment to the government.

However, since the appeal is pending in the Supreme Court of Pakistan, the Management Company, as a matter of abundant caution,has retained provision for FED amounting to Rs. 20.813 million. Had the provision not been made, NAV per unit of the Fund as at June30, 2020 would have been higher by Rs. 1.16 (30 June 2020: Rs. 0.98).

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

7.2 Provision for Sindh Workers' Welfare Fund is being made on a daily basis pursuant to MUFAP's recommendation to allits members on January 12, 2017 against the backdrop of the Sindh Revenue Board (SRB) letter to mutual funds inJanuary 2016 whereby SRB directed the mutual funds to register and pay Sindh Workers Welfare Fund (SWWF) for theaccounting year closing on or after December 31, 2013. This is on the premise that mutual funds are included indefinition of financial institutions in the Financial Institutions (Recovery of Finance) Ordinance, 2001 hence WWF ispayable by them. Though MUFAP has taken up the matter with the Sindh Finance Ministry to have CISs / mutual fundsexcluded from the applicability of SWWF, but as a matter of abundant caution management has recorded SWWF at2% of the net income earned by a Fund effective from April 12, 2016 (the date of the commencement of the Fund'soperation).

Furthermore, on November 10, 2016, Honourable Supreme Court of Pakistan (SCP) passed a judgment declaring theamendments made in the Finance Acts 2006 and 2008 pertaining to WWF as illegal citing that WWF was not in thenature of tax and could, therefore, not have been introduced through money bills. Accordingly, the aforesaidamendments have been struck down by the SCP. The Federal Board of Revenue has filed a petition with the SCPagainst the said judgment, which is pending hearing. While the petition filed by the Collective Investment Schemes(CISs) on the matter are still pending before the Sindh High Court (SHC), the Mutual Funds Association of Pakistan(MUFAP) (collectively on behalf of the asset management companies and their CISs) have taken legal and taxopinions on the impact of the SCP's judgement on the CISs petition before the SHC. Both the legal and tax advisorsconsulted were of the view that the SCP's judgment has removed the very basis on which the demands were raisedagainst the CISs. Therefore, there was no longer any liability against the CISs under the WWF Ordinance and that allcases pending in the SHC or lower appellate forums will now be disposed of in light of the earlier judgement of theSCP.

Pursuant to above MUFAP recommended that the entire provision of Rs. 13.862 million against WWF held by the CISstill June 30, 2015, to be reversed on January 12, 2017.

The total provision for SWWF till September 30, 2020 is Rs. 19.59 million (30 June 2019: Rs. 19.31 million). Had theprovision not been made, Net Assets Value per unit of the Fund as at June 30, 2020 would have been higher by Rs.1.09 (30 June 2019: Rs. 0.90) per unit.

8. CONTINGENCIES AND COMMITMENTS

An order under section 161 of Income Tax Ordinance, 2001 has been issued by the Deputy Commissioner InlandRevenue (DCIR) alleging that the Fund did not / partially deducted withholding taxes from various payments madeduring the tax year 2016 and hence ordered to pay Rs. 22.14 million (including penalty & default surcharge). Anappeal was filed before Commissioner Inland Revenue (CIRA) and thereafter in Appellate Tribunal Inland Revenue(ATIR), which is yet to be heard. The management is confident that no unfavourable outcome is expected in relationto this case.

There are no other contigencies and commitments during the year other than those already disclosed.

9. TOTAL EXPENSE RATIO

10. TAXATION

11. TRANSACTIONS AND BALANCES WITH RELATED PARTIES / CONNECTED PERSONS

Connected persons / related parties include AWT Investments Limited being the Management Company, CentralDepository Company of Pakistan Limited being the trustee, Army Welfare Trust which is the parent entity of theManagement Company, other funds managed by the Management Company, associated companies of themanagement company / parent entity of the management company, entities in which the above parties or theirconnected persons have a material interest, Key Management Personnel and includes entities holding 10% or moreunits of the Fund as at September 30, 2020. It also includes the staff retirement benefit funds of the above related parties /connected persons. Details of the transactions and balances with the related parties / connected persons, other than

those which has been disclosed elsewhere are as follows:

The Securities and Exchange Commission of Pakistan (SECP) vide directive no. SCD/PRDD/Direction/18/2016 dated July 20, 2016, requires that Collective Investment Scheme (CIS) shall disclose Total Expense Ratio (TER) in the financial statements of CIS / the Fund. As per S.R.O 639 (I)/2019, the limit towards expense ratio has been revised from 2.00% to 2.50% for income, aggressive income, capital protected, index and commodity schemes (cash settled). The total expense ratio of the Fund for the quarter ended September 30, 2020 is 2.04% (30 June 2020: 1.71%) which excludes 0.16% (30 June 2020: 0.18%) representing government levy, Sindh Worker's Welfare Fund and SECP fee.

The Fund's income is exempt from Income Tax as per clause (99) of part I of the Second Schedule to the Income Tax Ordinance, 2001 subject to the condition that not less than 90% of the accounting income for the year as reduced by capital gains whether realised or unrealised is distributed amongst the unit holders. Provided that for the purpose of determining distribution of at least 90% of accounting income, the income distributed through bonus shares, units or certificates as the case may be, shall not be taken into account. Furthermore, as per regulation 63 of the Non-Banking Finance Companies and Notified Entities Regulations, 2008, the Fund is required to distribute 90% of the net accounting income other than capital gains to the unit holders. The Fund has distributed more than ninety percent of the Fund's accounting income for the year as reduced by capital gains, whether realised or unrealised, to its unit holders during the year. Accordingly, no provision has been made in the financial statements for the quarter ended September 30, 2020.

11.1 Details of balances with related parties / connected persons Note September 30,2020 June 30,2020as at year end

AWT Investments Limited - Management Company

Remuneration payable to the Management Company 7 10,596 4,608 Selling and Marketing and Backoffice Expense 2,620 7,338

Army Welfare Trust - parent entity of the Management Company

Units held - 2,092,126 units (June 2020: 2,092,126 units) 18.5 225,552 223,062

Central Depository Company of Pakistan Limited - Trustee of the Fund

Remuneration payable to the Trustee 8 621 172 Security deposit 6 100 100

Key Management Personnel of the Management Company

Units held 15,871 units (June 2020: 17,830 units) 18.5 1,716 1,901

11.2 Details of transactions with related parties / connected persons during the year


Remuneration of Management Company 5,299 20,520 Issuance of Nil units (June 2020: 9 units) - 1 Redemption of Nil units (June 2020: 9 units) - 1 Selling and Marketing and Backoffice Expense 2,620 7,338

Army Welfare Trust - parent entity of the Management Company

Issuance of Nil units (June 2020: 2,021,405 units) - 221,986 Refund of Capital Nil units (June 2020: 73,297 units) - 7,816 Redemption of Nil units (June 2020: 2,021,092 units) - 222,098 Cash Dividend 24,944 24,944

Central Depository Company of Pakistan Limited - Trustee of the Fund

Remuneration of the Trustee 549 1,362 Sindh sales tax on trustee remuneration 71 177 CDC Settlement Charges 621 24

Key Management Personnel of the Management Company

Issuance of units (June 2020: 24,010 units) 2,737 2,737 Refund of Capital units (June 2020: 1,596 units) 170 170 Redemption of units (June 2020: 20,747 units) 2,326 2,326 Dividend paid during the period - 64

AWT Provident Fund

Issuance of Nil units (June 2020: Nil units) - - Redemption of Nil units (June 2020: Nil units) - -

11.3 Remuneration payable to the Management Company and the Trustees have been determined in accordance with the provisionsof NBFC Regulations and the Trust Deed respectively.

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

12 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 themeasurement 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 thescale of its operations or to undertake a transaction on adverse terms.

The fair value of financial assets and liabilities traded in active markets i.e. listed equity shares are based on the quoted market prices at the close oftrading on the year 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 anarm’s length basis.

IFRS 13, 'Fair Value Measurements' requires the Fund to classify fair value measurements using a fair value hierarchy that reflects the significance ofthe inputs used in making the measurements. The fair value hierarchy has the following levels:

- Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date (level 1).

- Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (level 2).

- Unobservable inputs for the asset or liability (level 3).

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair valuehierarchy.

On-balance sheet financial instruments Note Total Level 1 Level 2 Total

30 September 2020

Financial assets measured at fair valueInvestments 5 366,021 - - 366,021 - 366,021 366,021

Financial assets not measured at fair value 12.1Bank balances 4 - - 1,600,217 1,600,217

Investments 5 - - 125,000 125,000

Other receivables 6 - - 64,665 64,665 - - 1,789,883 1,789,883

Financial liabilities not measured at fair value 12.1Remuneration payable to the Management Company 7 - - 20,554 20,554 Remuneration payable to the Trustee 8 - - 621 621 Accrued expenses and other liabilities 7 - - 73,239 73,239

- - 94,413 94,413

On-balance sheet financial instruments Total Level 1 Level 2 Total

Note30 June 2020

Financial assets measured at fair valueInvestments 5 366,021 - - 366,021 - 366,021 366,021

Financial assets not measured at fair value 12.1Bank balances 5 - - 1,600,217 1,600,217 Investments 6 - - 125,000 125,000 Other receivables 7 - - 64,514 64,514

- - 1,789,732 1,789,732

Financial liabilities not measured at fair value 12.1Remuneration payable to the Management Company 8 - - 7,323 7,323 Remuneration payable to the Trustee 9 - - 549 549 Accrued expenses and other liabilities 11 - - 12,059 12,059

- - 19,932 19,932

12.1 The Fund has not disclosed the fair values for the above financial assets (other than for investments) and financial liabilities, as these are either shortterm in nature or repriced periodically. Therefore, their carrying amounts are reasonable approximation of fair values.

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

Fair valueMandatorily at fair value

through profit or

loss

Mandatorily at fair value

through profit or loss

At fair value through other

comprehensive income

At amortised

cost

At fair value through other

comprehensive income

At amortised

cost

Carrying amount

Carrying amount

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

Fair value

13. GENERAL

Figures have been rounded off to the nearest thousand Rupees.Corresponding figures have been rearranged or reclassified, whereever necessary, for the purpose of betterpresentation the effect of which is not material.No significant significant rearrangements or reclassifications . were made in this condensed interim financial information during the period

14 DATE OF AUTHORISATION FOR ISSUE

These condensed interim financial statements were authorized for issue by Board of Directors of the Management Company on _______________.

______________________ ______________________Chief Executive Officer Chief Financial Officer

_____________________Director

For AWT Investments Limited (Management Company)

AWT Islamic Income Fund

AWT

Islamic Income Fund

AWT Islamic Income Fund

FUND’S INFORMATION Management Company AWT Investments Limited 3rd Floor, AWT Plaza I.I Chundrigar Road, Karachi






Auditors Deloitte Yousuf Adil Chartered Accountants, Cavish Court, A-35 Shahrah-e-Faisal Rd.

K.C.H.S.U Block 7 & 8 Bangalore Town Karachi


Street No. 73, Sector F-11/1, Islamabad, 44000

Bankers Habib Bank Limited (Islamic Banking) Bank Al-Falah Limited (Islamic Banking) Al-Baraka Bank (Pakistan) Limited (Islamic Banking) Soneri Bank Limited (Islamic Banking) Askari Bank Limited (Islamic Banking) BankIslami Pakistan Limited

Shariah Advisor Abdul Zahid Farooqi

Rating A+(f) by PACRA

AWT ISLAMIC INCOME FUNDCONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIESAS AT SEPTEMBER 30, 2020

September 30, June 30,2020 2020

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

Assets

Bank balances 5 284,887 84,420 Investments 6 6,519 189,695 Profit Accrued - 4,602 Prepayment, security deposit and other receivables 3,355 755 Deferred formation cost - - Total assets 294,761 279,472

Liabilities

Payable to the Management Company 780 1,042 Remuneration payable to the Trustee 60 14 Annual fee payable to Securities and Exchange Commission of Pakistan 64 49 Accrued expenses and other liabilities 7 4,555 3,452 Total liabilities 5,458 4,557

Contingency and commitment 8

Net assets 289,303 274,915

Unit holders' fund 289,303 274,915

(Number)

Number of units in issue 2,751,392 2,659,389

(Rupees)


The annexed notes 1 to 14 form an integral part of this condensed interim financial information.


(Management Company)For AWT Investments Limited

Chief Financial Officer

AWT ISLAMIC INCOME FUNDCONDENSED INTERIM INCOME STATEMENTFOR THE QUARTER ENDED SEPTEMBER 30, 2020 (UNAUDITED)

2020 2019Note (Rupees in '000)

IncomeProfit on sukuk certificates 2,093 316 Profit on Commercial Paper - - Profit on term deposit receipts 603 935 Profit on bank balances 2,694 5,354 Gain on sale on held for trading investments - net 800 - Net unrealized loss on investments classified as held for trading (51) - Total income 6,139 6,605

ExpensesRemuneration of the Management Company 547 402 Sindh sales tax on Management Company's remuneration 71 52 Remuneration of the Trustee 55 41 Sindh sales tax on Trustee remuneration 7 5 Annual fee to the Securities and Exchange Commission of Pakistan 15 31 Auditors' remuneration 69 99 Fee and Subscription 153 147 Bank charges and Settlement Charges - - Brokerage expense - - Other Expenses 365 - Printing and related cost - - Provision for Sindh Workers' Welfare Fund 97 115 Total expenses 1,379 892 Net income for the quarter before taxation 4,760 5,713

Taxation 12 - -

Net income for the quarter after taxation 4,760 5,713

Allocation of net income for the quarterNet income for the quarter after taxation 4,760 5,713 Income already paid on units redeemed - (1,994)

4,760 3,719 Accounting income available for distribution- Relating to capital gains - - - Excluding capital gains 4,760 3,719

4,760 3,719


_____________________ _____________________Chief Executive Officer Chief Financial Officer Director


September 30,

AWT ISLAMIC INCOME FUNDCONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOMEFOR THE QUARTER ENDED SEPTEMBER 30, 2020 (UNAUDITED)

2020 2019(Rupees in '000)

Net income for the quarter after taxation 4,760 5,713

Other comprehensive income - -

Total comprehensive income for the quarter 4,760 5,713


_____________________Chief Financial Officer DirectorChief Executive Officer

September 30,


_____________________

AWT ISLAMIC INCOME FUNDCONDENSED INTERIM CASH FLOW STATEMENTFOR THE QUARTER ENDED SEPTEMBER 30, 2020 (UNAUDITED)

Note 2020 2019(Rupees in '000)

CASH FLOWS FROM OPERATING ACTIVITIES

Net income for the quarter before taxation 4,760 5,713

Adjustments for:Profit on sukuk certificates (2,093) (316) Profit on term deposit receipts (603) (935) Profit on bank balances (2,694) (5,354) Gain on sale on held for trading investments - net (800) -

(1,430) (892)

(Increase) / Decrease in assetsInvestments 191,266 (1,635) Prepayment, security deposit and other receivables (2,600) (53)

188,666 (1,688)

Increase / (Decrease) in liabilitiesPayable to the Management Company (262) (47) Remuneration payable to the Trustee 46 (20) Annual fee payable to Securities and Exchange Commission of Pakistan 15 (55) Accrued expenses and other liabilities 1,103 496

901 374

Mark-up received on bank balances 549 2,072 Profit received on sukuk investment 2,153 (5) Net cash (used in) / generated from operating activities 190,839 (139)


Amount received on issuance of units (net of re-investment) 124,749 30,526 Amount paid on redemption of units (115,121) (110,076) Dividend paid (net of re-investment) - - Net cash (used in) / generated from financing activities 9,628 (79,550) Net (decrease) / increase in cash and cash equivalents 200,467 (79,689)

Cash and cash equivalents at beginning of the quarter 84,420 149,340 Cash and cash equivalents at end of the quarter 5 284,887 69,651



September 30,



AWT ISLAMIC INCOME FUNDCONDENSED INTERIM STATEMENT OF MOVEMENT IN UNITHOLDERS’ FUND

FOR THE QUARTER ENDED SEPTEMBER 30, 2020 (UNAUDITED)

-

Net assets at beginning of the quarter 284,329 (9,414) 274,915 216,412 1,645 218,057

Issuance of 1,192,558 units (2019: 27,140 units)Capital Value 123,281 - 123,281 30,442 - 30,442 Element of income 1,468 - 1,468 84 - 84 Amount received on issuance of units 124,749 - 124,749 30,526 - 30,526

Redemption of 1,100,655 units (2019: 270,502 units)Capital Value (113,780) - (113,780) (108,082) - (108,082) Element of income:

- Income already paid - - - - - - Refund / adjustment on units (1,341) - (1,341) (1,994) - (1,994)

Amount paid on redemption of units (115,121) - (115,121) (110,076) - (110,076)

Total comprehensive income for the quarter - 4,760 4,760 - 5,713 5,713Distribution during the quarter - - - - - - Refund of Capital - - - - - - Net income for the quarter less distribution - 4,760 4,760 - 5,713 5,713

Net assets as at end of the quarter 293,957 (4,654) 289,303 136,862 7,358 144,220

Undistributed income brought forward:- Realized income (175,053) 1,645 - Unrealized income 17,599 -

(157,454) 1,645 Accounting income available for distribution:

Relating to capital gains 749 - Excluding capital gains 4,011 3,719

4,760 3,719

Undistributed income carried forward (152,694) 5,364

Undistributed income carried forward- Realized income (152,643) 5,364 - Unrealized income (51) -

(152,694) 5,364

(Rupees) (Rupees)

Net assets value per unit at beginning of the quarter 103.38 102.45

Net assets value per unit at end of the quarter 105.15 105.23


____________________ ______________________Chief Executive Officer Chief Financial Officer

________________Director

September 30, 2020 September 30, 2019

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

Value Undistributed income

Total Value Undistributed income

Total


AWT ISLAMIC INCOME FUNDNOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL INFORMATIONFOR THE QUARTER ENDED SEPTEMBER 30, 2020 (UNAUDITED)


1.1

1.2

1.3

1.4

1.5

1.6

2. BASIS OF PREPARATION

The transactions undertaken by the Fund are in accordance with the Shariah guidelines issued by theShariah advisor and are accounted for on substance rather than the form prescribed by the above referredguidelines. This practice is being followed to comply with the requirements of approved accounting standards as applicable in Pakistan.

AWT Islamic Income Fund ("the Fund") was established under a Trust Deed, dated 15 May 2013, executed

between AWT Investments Limited as Management Company, a company incorporated under the repealed

Companies Ordinance, 1984 (now Companies Act, 2017) and the Central Depository Company of Pakistan

Limited (CDC) as a Trustee, a company incorporated under the repealed Companies Ordinance, 1984 (now

Companies Act, 2017). The Securities and Exchange Commission of Pakistan (SECP) registered the Fund

as a Notified Entity on 25 November 2013, under Regulations 44 of the Non Banking Finance Companies

and Notified Entities Regulations, 2008 (Establishment and Regulation) Rules.On 26 July 2017, Securities

and Exchange Commission of Pakistan gave its approval for the change of Services and Investment

Advisory Services as a Non-Banking Finance Company under the Non-Banking Finance Companies

(Establishment and Regulation) Rules, 2003 (NBFC Rules). Registered office of the Management Company

is situated at 3rd Floor, AWT Plaza,I.I. Chundrigar Road, Karachi.

The Fund has been given a stability rating of A(f) by The Pakistan Credit Rating Agency Limited. TheManagement Company of the Fund has been given quality rating of AM3+ by The Pakistan Credit RatingAgency Limited.

The Fund offers units for public subscription on a continuous basis. The units are transferable and can also

be redeemed by surrendering them to the Fund. The Fund is listed on the Pakistan Stock Exchange Limited.

The Scheme is a ‘Shariah Compliant Islamic Income Scheme’ as per the criteria for the categorization ofopen-end collective investment schemes specified by the Securities and Exchange Commission of Pakistan.The objective of the Fund is to generate competitive risk adjusted returns by investing in short, medium andlong-term Shariah Compliant fixed income instruments.

Title to the assets of the Fund is held in the name of Central Depository Company of Pakistan Limited as aTrustee of the Fund.

Transactions undertaken by the Fund are in accordance with the guidelines issued by the ShariahSupervisory Council.

3. STATEMENT OF COMPLIANCE

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

AND RISK MANAGEMENT

4.1

4.2


5. BANK BALANCES Note (Unaudited) (Audited)(Rupees in '000)

Balances with banks in:- Current account 3 3 - Profit and loss sharing accounts 5.1 284,885 84,417

284,887 84,420 5.1 These accounts carry profit rates ranging from 4% to 6.45 % per annum.

6 INVESTMENTS

At fair value through income statement - held for tradingSukuk certificates 6.1 6,519 7,070 GOP Ijara Sukuk - 116,400

Loans and ReceivablesCommercial Paper - 34,131 Certificate of Musharika 32,094

6,519 189,695

The Fund’s financial risk management objectives and policies are consistent with those disclosed in the

financial statements as at and for the year ended June 30, 2020.

This condensed interim financial information has been prepared in accordance with the approved accountingstandards as applicable in Pakistan for interim financial reporting. Approved accounting standards compriseof such International Financial Reporting Standards (IFRSs) issued by the International AccountingStandards Board as are notified under the repealed Companies Ordinance, 1984 (now Companies Act,2017), the requirements of the Trust Deed, the NBFC Rules, the NBFC Regulations and the directivesissued by the SECP. Wherever the requirements of the Trust Deed, the NBFC Rules, the NBFC Regulationsor the directives issued by the SECP differ with the requirements of the IFRSs, the requirements of the TrustDeed, the NBFC Rules, the NBFC Regulations or the directives issued by the SECP prevail.

The disclosures made in this condensed interim financial information have, however, been limited based onthe requirements of the International Accounting Standard 34: 'Interim Financial Reporting'. This condensedinterim financial information does not include all the information and disclosures required in a full set offinancial statements and should be read in conjunction with the annual published audited financialstatements of the Fund for the year ended June 30, 2020.

The accounting policies and methods of computation adopted in the preparation of this condensed interimfinancial information are the same as those applied in preparation of the financial statements of the Fund forthe year ended June 30, 2020.

6.1

At

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(Unaudited) (Audited)7. ACCRUED EXPENSES AND OTHER LIABILITIES

Note (Rupees in '000)

Provision for Sindh Workers' Welfare Fund 7.1 1,019 922 Provision for indirect duties and taxes - Federal Excise Duty payable on Management Company'sremuneration 7.2 339 339

Sales tax on management remuneration payable - 19 Sales tax on trustee remuneration payable - 2 Auditors' remuneration payable 432 363 Shariah advisory fee 69 17 Printing and Stationary 16 - Capital Gain tax payable 186 69 Withholding tax payable 979 1,129 Dividend Payable - 576 Other Payable 1,266 16 Listing Fee Payable 6 - Credit Rating Fee Payable 243 -

4,555 3,452

7.1

7.2


There were no contingencies and commitments outstanding as at September 30, 2020 and June 30, 2020.

While disposing the above petition through order dated July 16, 2016, the SHC declared the said provisions to beultra vires and as a result no FED is payable with effect from 01 July 2011. However, the tax authoritiessubsequently filed appeal against the decision of the SHC in the Supreme Court of Pakistan, which is pending forthe decision.

Further, the Finance Act 2016, also introduced an amendment to the Federal Excise Act, 2015 whereby FED was

withdrawn on services of different industries including Non-Banking Financial Institutions, which are already subject

to provisional sales tax. The amount is payable to management company for onwards payment to government.

However, since the appeal is pending in the Supreme Court of Pakistan, the Management Company, as a matter ofabundant caution, has retained provision for FED aggregating to Rs. 0.339 million. Had the provision not beenmade, NAV per unit of the Fund as at 30 September 2020 would have been higher by Rs. 0.12 per unit.

Provision for Sindh Workers Welfare Fund is being made on a daily basis going forward pursuant to MUFAP'srecommendation to all its members on 12 January 2017 against the backdrop of the Sindh Revenue Board (SRB)letter to mutual funds in January 2016 whereby SRB directed the mutual funds to register and pay Sindh WorkersWelfare Fund (SWWF) for the accounting year closing on or after 31 December 2013. This is on the premise thatmutual funds are included in definition of financial institutions in the Financial Institutions(Recovery of Finance)Ordinance, 2001 hence WWF is payable by them. Though MUFAP has taken up the matter with the Sindh FinanceMinistry to have CISs / mutual funds excluded from the applicability of SWWF but as a matter of abundant cautionthe Management has recorded SWWF with effect from the date of enactment of the SWWF Act, 2014 (i.e. startingfrom 21 May 2015).

Pursuant to above MUFAP recommended that the entire provision of Rs. 0.152 million against WWF held by theCISs till 30 June 2015, to be reversed on 12 January 2017.

The total provision for SWWF till 30 September 2020 is Rs. 1.019 million. Had the provision not been made, NetAsset Value per unit of the Fund as at 30 September 2020 would have been higher by Re. 0.37 per unit.

Furthermore, on 10 November 2016, Honorable Supreme Court of Pakistan (SCP) passed a judgment declaringthe amendments made in the Finance Acts 2006 and 2008 pertaining to WWF as illegal citing that WWF was not inthe nature of tax and could, therefore, not have been introduced through money bills.Accordingly, the aforesaidamendments have been struck down by the SCP. The Federal Board of Revenue has filed a petition with the SCPagainst the said judgment, which is pending hearing. While the petitions filed by the Collective InvestmentSchemes (CISs) on the matter are still pending before the Sindh High Court (SHC), the Mutual Funds Associationof Pakistan (MUFAP) (collectively on behalf of the asset management companies and their CISs) have taken legaland tax opinions on the impact of the SCP's judgment on the CISs petition before the SHC. Both the legal and taxadvisors consulted were of the view that the SCP's judgment has removed the very basis on which the demandswere raised against the CISs. Therefore, there was no longer any liability against the CISs under the WWFOrdinance and that all cases pending in the SHC or lower appellate forums will now be disposed of in light of theearlier judgment of the SCP.

Above decisions regarding the reversal and the recognition of SWWF were communicated to the SECP and thePakistan Stock Exchange Limited on 12 January 2017 and SECP vide its letter dated 1 February 2017 has advisedMUFAP that the adjustments relating to the above should be prospective. Accordingly, the Fund has recordedthese adjustments in its books on 12 January 2017.

As per the requirement of Finance Act, 2013, Federal Excise Duty (FED) at the rate of 16% on the remuneration of

the Management Company has been applied effective 13 June 2013. The Management Company is of the view

that since the remuneration is already subject to 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) on 04 'September 2013.

9. TOTAL EXPENSE RATIO (TER)

10 TRANSACTIONS WITH RELATED PARTIES / CONNECTED PERSONS

Note September 30, June 30,2020 2020

10.1 Balances with related parties / connected (Unaudited) (Audited) persons as at quarter end (Rupees in '000)

AWT Investments Limited - Management Company of the FundRemuneration payable to the Management Company 780 143 Preliminary and floatation costs payable to Management Company 110 110 Preliminary and floatation costs receivable from Management Company 346 346 Units held - 97,982 (2020: 97,982) 10,303 10,129

Askari General Insurance Co. LtdUnits held - 355,726 (2020: 355,726) 37,404 36,775 Dividend Payable - 615

Aemy Welfare Trust Units held - 506,177 (2020: 506,177) 53,223 52,329

Orix Modaraba Pakistan Limited Profit Receivable - 3,094

Central Depository Company of Pakistan Limited - Trustee of the FundRemuneration of the Trustee 60 14 Security Deposit 100 100

Key Management Personnel

Units held - nil (2020: 126,223) - 13,049

10% or more holding

Units held - 306,964 (2020: 306,964) 32,277 31,734

10.2 Details of transactions with related parties / connected persons during the quarter September 30, September 30,

2020 2019

AWT Investments Limited - Management Company of the FundIssuance of nil units (2019: 1,509 units) - 155 Redemption of nil units (2019: 418,040 units) - 43,065 Remuneration of Management Company 547 402

Askari General Insurance Co. LtdIssuance of nil units (2018: 243,760 units) - 25,000

Central Depository Company of Pakistan Limited - Trustee of the FundRemuneration of the Trustee 55 41 Settlement charges - 1

Key Management PersonnelRedemption of 126,223 units (2019: 6,758 units) 13,059 700

10.3

10.4

(Unaudited)

The Total Expense Ratio (TER) of the Fund for the quarter ended September 30, 2020 is 1.91% which include 0.13%representing government levy, Sindh Workers' Welfare Fund and SECP fee.

Connected persons / related parties include AWT Investments Limited being the Management Company, CentralDepository Company of Pakistan Limited being the trustee, other funds managed by the Management Company,associated companies (if any) of the management company , entities in which the above parties or their connectedpersons have a material interest, Key Management Personnel and includes entities holding 10% or more units of theFund as at 30 September 2020 or during the quarter. It also includes the staff retirement funds of the above relatedparties / connected person. Details of the transactions and balances with the related parties / connected persons, otherthan those which has been disclosed elsewhere are as follows:

Remuneration payable to the Management Company and the Trustee have been determined in accordance with theprovisions of NBFC Regulations and the Trust Deed respectively.

Purchase and redemption of units of the Fund by related parties / connected persons are recorded at the applicablenet asset value per unit. Other transactions are at agreed rate.

11 FAIR VALUES OF FINANCIAL INSTRUMENTS

Fair value Loans and Other Total Level 1 Level 2 Totalthrough receivables financialincome liabilities

30 September 2020 (Un-Audited) Note statement

Financial assets measured at fair valueInvestments (non- traded) 11.1 6,519 - - 6,519 - - -

Financial assets not measured at fair value Bank balances 11.1 - 284,887 - 284,887 - - - Investments Loans & Receivables 11.1 - 6,519 - 6,519 - - - Security deposit and other receivables 11.1 - 2,937 - 2,937 - - -

- 294,343 - 294,343 - - -

Financial liabilities not measured at fair valuePayable to the Management Company 11.1 - - 780 780 - - - Remuneration payable to the Trustee 11.1 - - 60 60 - - - Accrued expenses and other liabilities 11.1 - - 4,555 4,555 - - -

- - 5,395 5,395 - - -

Fair value Loans and Other Total Level 1 Level 2 Totalthrough receivables financialincome liabilities

30 June 2020 (Audited) Note statement

Financial assets measured at fair valueGOP Ijara Sukuk - 5 Years 116,400

Investments (non- traded) 11.1 7,070 - - - - -

Financial assets not measured at fair value Bank balances 11.1 - 84,420 - 84,420 - - - Investment (Term Deposit Receipt) 11.1 - 66,225 - 66,225 Security deposit and other receivables 11.1 - 755 - 755 - - -

- 151,400 - 151,400 - - -

Financial liabilities not measured at fair valuePayable to the Management Company 11.1 - - 1,042 1,042 - - - Remuneration payable to the Trustee 11.1 - - 14 14 - - - Accrued expenses and other liabilities 11.1 - - 3,452 3,452 - - -

- - 4,508 4,508 - - -

11.1 The Fund has not disclosed the fair values for these financial assets and financial liabilities because their carrying amounts are a reasonable approximation of their fair value.

12 TAXATION

Carrying amount

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy for financial instruments measured at fair value. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

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.

Fair value

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

Fair value

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, 2001subject to the condition that not less than 90 percent of the accounting income for the year as reduced by capital gains, whether realizedor unrealized, is distributed amongst the unit holders. Furthermore, as per regulation 63 of the NBFC Regulations, the Fund is required todistribute 90 percent of the net accounting income other than capital gains to the unit holders. The Fund has not recorded any tax liabilityin respect of income relating to the current period as the Management Company intends to distribute at least 90 percent of the Fund'saccounting income for the period ending September 30, 2020 as reduced by capital gains (whether realized or unrealized) to its unitholders.

Carrying amount

13 GENERAL

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

13.2

14 DATE OF AUTHORISATION

This condensed interim financial information was authorized for issue on October 29, 2020 by the Board of Directors of the Management Company.

__________________Director



Corresponding figures have been rearranged and reclassified, wherever necessary, for the purpose of better presentation. No significant rearrangements or reclassifications were made in this condensed interim financial information during the period except for the following for better presentation:

_____________________

Chief Executive Officer Chief Financial Officer

_____________________

AWT Islamic Stock Fund

AWT

ISLAMIC STOCK FUND

AWT Islamic Stock Fund








K.C.H.S.U Block 7&8 Bangalore Town Karachi

Legal Advisors Rizwan Faiz Associates. Apartment No. 011, Tariq Heights, Street No.73, Sector F-11/1, Islamabad, 44000

Bankers Bank Al-Falah Limited (Islamic Banking)

Al-Baraka Bank (Pakistan) Limited (Islamic Banking)

Soneri Bank Limited (Islamic Banking) Askari Bank Limited (Islamic Banking)

BankIslami Pakistan Limited

Shariah Advisor Abdul Zahid Farooqi

CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES

AS AT SEPTEMBER 30, 2020

September 30, June 30,

2020 2020

Note

ASSETS (Unaudited) (Audited)

Bank balances 4 8,234 20,651 Investments 5 94,503 61,844 Dividend and other receivables 7,617 254 Security deposits 2,600 2,600 Preliminary and flotation costs - - TOTAL ASSETS 112,954 85,349

LIABILITIES

Payable to the Management Company 1,018 825 Remuneration payable to the Trustee 93 77 Annual fee payable to Securities and Exchange Commission of Pakistan 5 19 Accrued Expenses and other liabilities 6 4,699 3,723

TOTAL LIABILITIES 5,815 4,644

CONTINGENCIES AND COMMITMENTS 7 - -

NET ASSETS 107,139 80,705

Unit holders' funds 107,139 80,705

Number of units in issue 1,189,437 1,000,428

Net asset value per unit 90.08 80.67

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



AWT ISLAMIC STOCK FUND

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

-------Number of units-------

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

____________________ ________________


____________________


CONDENSED INTERIM INCOME STATEMENT (UN-AUDITED)

FOR THE QUARTER ENDED SEPTEMBER 30, 2020

For the quarter

ended September

30, 2020

For the quarter

ended September

30, 2019

Note

INCOME

Return / mark-up on; - bank balances 188 519

Dividend income - 449

Realized gain on sale of investments (224) -

Net unrealized gain/ (loss) on investments classified 'at fair value

through profit or loss - held-for-trading' 11,775 (1,752) 11,739 (784)

EXPENSES

Remuneration of AWT Investments Limited - Management Company 517 435

Sindh Sales tax on remuneration of Management Company 67 57 Remuneration of Central Depository Company of Pakistan Limited - Trustee 52 41

7 14

Annual fee to Securities and Exchange Commission of Pakistan 5 13 Amortization of deferred formation costs - - Auditors' remuneration 64 108

Listing fee 6 6

Selling, Marketing and Back office expenses 129 -

Provision for Sindh Workers' Welfare Fund 140 -

Brokerage and settlement charges 170 139 Other expenses 52 51

1,209 864

Net (Loss) for the period before taxation 10,530 (1,648)

Taxation 8 - -

Net income /(Loss) for the period after taxation 10,530 (1,648)

Allocation of net income for the period

(a) Net (Loss) / income for the period after taxation 10,530 (1,648)

(b) Income already paid on units redeemed (8,048) -

2,482 (1,648)

Accounting income available for distributation

i Relating to capital gains / (loss) 11,551 (1,752)

ii Excluding capital gains / (loss) (9,069) 104

2,482 (1,648)



Sindh Sales tax on remuneration of Central Depository Company of

Pakistan Limited - Trustee

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



____________________ ________________


____________________


CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)

For the quarter

ended September 30,

2020

For the quarter ended

September 30, 2019


Other comprehensive income for the quarter

Total comprehensive (Loss) / income for the quarter 10,530 (1,648)



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




____________________ ________________


____________________


CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED)

For the quarter

ended

September 30,

2020

For the quarter

ended

September 30,

2019



Adjustments:

Return / mark-up on;

- bank balances (188) (519)

Dividend income - (449)

Net (gain) on sale of marketable securities 224 -

Amortization of deferred formation costs - -

Net unrealized (gain) on investments classified 'at fair value

through profit or loss - held-for-trading' (11,775) 1,752

(1,209) (864)

(Increase) / decrease in current assets

Investments - net (28,569) 4,238

Dividend received - 2,501

Prepayments and other receivables 22 (32)

(28,547) 6,707 Increase / (decrease) in current liabilities

Payable to Management Company 193 (340)

Remuneration payable to the Trustee 16 10

Annual fee payable to Securities and Exchange Commission of Pakistan (14) (67)

Accrued expenses and other liabilities 976 222

1,171 (175)

Return on bank balances received 264 1,092

Net cash (used in) operating activities (28,321) 6,760


Amounts received from issuance of units 62,376 11,026

Amount paid on redemption of units (44,651) (5,779)

Dividend paid (1,821) -

Net Cash (used in) / generated from financing activities 15,904 5,247

Net (decrease) / increase in cash and cash equivalents (12,417) 12,007

Cash and Cash equivalents at the beginning of the period 20,651 17,687

Cash and Cash equivalents at the end of the period 8,234 29,694




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



____________________ ________________


____________________



CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUND (UNAUDITED)


Net assets at beginning of the period 86,394 (5,689) 80,705 97,931 (11,056) 86,875

Issue of 662,511 units (2019: 115,364 units)

- Capital value 53,654 - 53,654 16,004 - 16,004

- Element of loss 8,722 - 8,722 11 - 11

Total proceeds on issuance of units 62,376 - 62,376 16,015 - 16,015

Redemption of 473,501 units (2019: 58,001 units)

- Capital value (38,197) - (38,197) (10,297) - (10,297)

- Element of income (6,454) - (6,454) (27) - (27)

Total payments on redemption of units (44,651) - (44,651) (10,324) - (10,324)

Element of loss and capital losses in

prices of units sold less those in units redeemed - net - - - - - -

Total comprehensive (loss) / income for the period - 10,530 10,530 - (1,648) (1,648)

Distribution during the period - (1,821) (1,821) - - -

Net assets as at end of the period 104,119 3,020 107,139 103,622 (12,704) 90,918

Undistributed income brought forward:

- Realized income at beginning of the period (7,543) 13,664

- Unrealized income at beginning of the period 1,854 (24,720)

(5,689) (11,056)

Accounting income available for distribution:

Relating to capital gains 11,551 (10,952)

Excluding capital gains (9,069) (1,752)

2,482 (12,704)

Distribution during the period - -

Represented by:

- Realized income at end of the period (9,293) (10,952)

- Unrealized income at end of the period 11,775 (1,752)

Undistributed income at end of the period 2,482 (12,704)

Net assets value per unit at beginning of the period 80.67 80.32

Net assets value per unit at end of the period 90.08 78.88


____________________ ________________


For quarter ended

30 September,

2020 2019

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

Total



____________________


Capital Value Undistributed

income

Total Capital Value Undistributed

income


NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)




2.1 STATEMENT OF COMPLIANCE

3.

3.1

3.1.1

The transactions undertaken by the Fund are in accordance with the process prescribed under the Shariah guidelines issued by the

Shariah Supervisory Council.

AWT Islamic Stock Fund ("the Fund") was established under a Trust Deed, dated 15 May 2013, executed between AWT

Investments Limited as Management Company, a company incorporated under the Companies Act, 2017 and the Central

Depository Company of Pakistan Limited (CDC) as a Trustee. The Securities and Exchange Commission of Pakistan (SECP)

registered the Fund as a Notified Entity on 25 November 2013, under Regulations 44 of the Non Banking Finance Companies and

Notified Entities Regulations, 2008 (Establishment and Regulation) Rules.

On 26 July 2017, Securities and Exchange Commission of Pakistan gave its approval for the change of the name of the

Management Company from Primus Investment Management Limited to AWT Investments Limited. The change was made

persuant to the acquistion 70% shares of the Management Comapany by Army Welfare Trust (AWT).

The Management Company of the Fund has been licensed by the Securities and Exchange Commission of Pakistan (SECP) to

undertake asset management and investment advisory services as a Non-Banking Finance Company. The registered office of

Primus Investment Management Limited is situated at 4th Floor, Horizon Vista, Commercial 10, Block 4, Scheme 5, Clifton, Karachi.

The Fund offers units for public subscription on a continuous basis. The units are transferable and can These can also be redeemed

by surrendering them to the Fund. The Fund is listed on the Pakistan Stock Exchange Limited

The Scheme is a ‘Shariah Compliant Islamic Equity Scheme’ as per the criteria for the categorization of open-end collective

investment schemes specified by the Securities and Exchange Commission of Pakistan. The objective of the Fund is to achieve long

term capital growth by investing mainly in Shariah Compliant listed equity securities.

The Scheme is permitted to invest in secured, unsecured, listed equity market securities (subject to minimum limit of 70% during

the year based on quarterly average investment calculated on a daily basis) including treasury bills not exceeding 90 days maturity

and cash or near cash instruments, including cash in bank accounts (excluding TDRs), equity securities not listed on the stock

exchange Investment outside Pakistan, including international listed securities and foreign currency bank deposits (excluding

TDRs), subject to such conditions as imposed by SECP and with the prior approval of SECP and SBP (upto 30%, subject to a cap of

USD 15 million) and any other securities or instrument that may be permitted by commission (upto a limit of 30%).

This condensed interim financial information has been prepared in accordance with the approved accounting standards as

applicable in Pakistan for interim financial reporting. Approved accounting standards comprise of such International Financial

Reporting Standards (IFRSs) issued by the International Accounting Standards Board as are notified under the repealed

Companies Ordinance, 1984 (now Companies Act, 2017), the requirements of the Trust Deed, the NBFC Rules, the NBFC

Regulations and the directives issued by the SECP. Wherever the requirements of the Trust Deed, the NBFC Rules, the NBFC

Regulations or the directives issued by the SECP differ with the requirements of the IFRSs, the requirements of the Trust Deed, the

NBFC Rules, the NBFC Regulations or the directives issued by the SECP prevail.

The disclosures made in this condensed interim financial information have, however, been limited based on the requirements of

the International Accounting Standard 34: 'Interim Financial Reporting'. This condensed interim financial information does 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.

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

The accounting policies and methods of computation adopted in the preparation of this condensed interim financial information

are the same as those applied in preparation of the financial statements of the Fund for the year ended June 30, 2020 except for

the following:

Reclassification of financial assets

During the current period IFRS-9 became applicable, according to the standard, all equity investments are to be measured at fair

value in the statement of financial position with value change recognized in profit or loss. Standard also retains an option in

respect of equity investments (other than held for trading) for which the entity may elect to report value change in 'other

comprehensive income'.However, the fund is not maintaining investment portfolio of 'available for sale' and considered not to be

relevant in these condensed interim financial information.


2020 2019

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

(Un-audited) (Audited)

4. BANK BALANCES

Current account 109 1,059

Profit and loss sharing accounts 4.1 8,125 25,891

8,234 26,950

4.1 These represent bank balances with commercial banks carrying market competitive markup rates.

5. INVESTMENTS

At fair value through profit or loss - held-for-trading

Listed equity securities 5.1 94,502 60,794

94,502 60,794

5.1 At fair value through profit or loss - held-for-trading - Listed equity securitiesShares of listed companies - fully paid ordinary shares with a face value of Rs.10/- each unless stated otherwise.

At the Acquired Bonus / rights Disposed Holding Market % of % of beginning of during the received during during the at the end value net investee

Sectors / Companies the period period the period period of the period (Rupees in ooo) assets capital

FertilizerFauji Fertilizer Company Limited 52,000 - - 52,000 - - - - Engro Corporation Limited 25,750 - - 25,750 - - - -

- -

CementLucky Cement Company Limited (Related Party) - 500 - - 500 324 0.30 0.00 Maple Leaf Cement Factory Limited - 298,000 - - 298,000 10,695 9.98 0.03

11,019 10.28

Oil & Gas (Exploration Companies)Mari Petroleum Company Limited 38 - - - 38 52 0.05 0.00 Pakistan Petroleum Limited - 128,500 - - 128,500 11,830 11.04

11,882 11.09

Oil & Gas (Marketing & Exploration)Pakistan State Oil Company Limited 432 - - - 432 86 0.08 0.00

86 0.08

EngineeringMughal Iron & Steel Industries Limited 263 - - - 263 17 0.02 0.00 International Industries Limited 27,500 - - - 27,500 3,986 3.72 0.02

4,003 3.74

PharmaceuticalsGlaxoSmithKline (Pak) Limited 33,300 - - - 33,300 6,115 5.71 0.01 Searle Company Limited 21,850 - - - 21,850 5,600 5.23 0.01

11,715 10.93

Textile CompositeNishat Mills Limited 137,000 29,000 - - 166,000 16,778 15.66 0.05

16,778 15.66

Commercial Banks - Meezan Bank Limited 151,050 25,000 17,605 - 193,655 15,920 14.86 0.02

15,920 14.86

Food and Personal care Products At-Tahur Limited 11,063 - - - 11,063 234 0.22 0.01 Frieslandcampins Engro Foods Limited 115,500 - - - 115,500 9,068 8.46 0.02

9,302 8.68

Paper & BoardPackages Limited (Related Party) 12,200 - - - 12,200 6,128 5.72 0.01

6,128 5.72 Refinery

National Refinery Limited 13,100 - - - 13,100 2,279 2.13 0.02

2,279 2.13 Industrial Transportation

Synthetic Products Limited 9,000 - 3,000 - 12,000 401 0.37 0.01

401 0.37

- - Technology & Communication

Netsol Technologies Limited - 83,000 - - 83,000 4,989 4.66 0.09

4,989 4.66

Market value as at 30 September 2020 94,502 73.86

Cost as at 30 September 2020 102,676

Held for trading investments as at 30 June 2020 61,844

Cost of held for trading investments as at 30 June 2020 59,990

5.2

5.3 Following shares (mentioned in note 5.1) have been pledged with National Clearing Company of Pakistan Limited:September 30, June 30, September 30, June 30,

2020 2020 2020 2020

(Un-audited) (Audited) (Un-audited)

Engro Corporation Limited - 10,000 - 2,929 Nishat Mills Limited 100,000 100,000 10,107 7,801 Meezan Bank Limited 100,000 100,000 8,221 7,801

------------------------ Number of shares --------------------------

Finance Act, 2014 had introduced tax on bonus shares issued by the Companies. Most Equity Funds including the Fund have challenged the applicability of withholding tax provision on bonus shares before Honourable High Court of Sindh (“the Court”) on various legal grounds and have sought relief from the Court. In the Fund's case, up to the period end, tax in the shape of 350 shares of The Searle Company

Limited (June 2020: 350 shares) 300 Shares of Pakistan State Oil Limited (June 2020: 300), 263 shares of Mughal Iron and Steel Industries ( June 2020: 263) Limited and 35 Shares of Mari Petroleum Limited (June 2020: 35 shares) had been withheld by CDC.

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


2020 2020


6. ACCRUED EXPENSES AND OTHER LIABILITIES

Provision for Sindh worker's welfare fund 6.1 1,833 1,693

PAYABLE AGAINST REDEMPTION OF UNITS - -

Payable against purchase of investment 300 -

Auditors' remuneration 279 227

Other Payable 971 496

FED payable on management company's remuneration 6.2 1,145 1,145

Sales tax payable on Management Company remuneration 171 162

4,699 3,723

6.1. PROVISION FOR SINDH WORKERS' WELFARE FUND

6.2 Federal Excise Duty (FED)


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

As a consequence of the 18th amendment to the Constitution of Pakistan, in May 2015 the Sindh Workers' Welfare Fund Act

(SWWF Act), 2014 was 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.0.5 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

MUFAP with the Sindh Revenue Board (SRB) collectively on behalf of various asset management companies (including the

Management Company of the Fund) whereby it was contested that mutual funds should be excluded from the ambit of the

SWWF Act as these were not industrial establishments but were pass through investment vehicles and did not employ workers.

The SRB held that mutual funds were included in the definition of financial institutions as per the Financial Institution (Recovery of

Finances) Ordinance, 2001 and were, hence, required to register and pay SWWF under the SWWF Act. Thereafter, MUFAP has

taken up the matter with the Sindh Finance Ministry to have CISs I mutual funds excluded from the applicability of SWWF which is

currently pending. Accordingly, as a matter of abundant caution, MUFAP has recommended to all its members to record a

provision for SWWF from the date of enactment of SWWF Act, 2014 (i.e. Starting from May 21, 2015).

The Management Company, being prudent, recognized provision for SWWF amounting to Rs. 1.833 million as at September 30,

2020 in these financial statements. Had the provision not been made, net assets value per unit at September 30, 2020 would have

been higher by Rs. 1.54 per unit (June 30, 2020: Rs 1. 69 per unit).

As per the requirements of the Finance Act, 2013, Federal Excise Duty (FED) at the rate of 16 percent on the remuneration of the

Management Company has been applied effective from 13 June, 2013. The Management Company 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) on 04 September 2013

The Fund had no contingency or commitment at the period end except as those mentioned else where in these condensed interim

financial statements.

While disposing the above petition through order dated 16 July 2011, the SHC declared the said provisions to be ultra vires and as

a result no FED is payable with effect from 01 July, 2016. However, the tax authorities subsequently filed appeal against the

decision of the SHC in the Supreme Court of Pakistan, which is pending for the decision.

Further, the Finance Act 2016 also introduced an amendment to the Federal Excise Act, 2005 whereby FED was withdrawn on

services of different industries including Non-Banking Financial Institutions, which are already subject to provincial sales tax. The

amount is payable to the Management Company for onward payment to the Government.

In view of above, the Management Company, being prudent, is carrying provision for FED amounting to Rs. 1.145 million. Had

the provision not been retained, NAV per unit of the Fund as at September 30, 2020 would have been higher by Rs. 0.96 per Unit

(June 30, 2020: 1.15 per unit).

8.

9. Fair value of financial instruments

On-balance sheet financial instruments Fair value Available Loans and Other Total Level 1 Level 2 Level 3 Totalthrough for sale receivables financial

Note income liabilities30 September 2020 statement

Financial assets measured at fair value 9.1

Listed equity securities 94,502 - - - 94,502 94,502 - - 94,502

Financial assets not measured at fair value 9.1

Bank balances - - 8,234 - 8,234 - - - - Other receivables - - 355 - 355 - - - - Security deposits - - 2,600 - 2,600 - - - -

- - 11,189 - 11,189 - - - -

Financial liabilities not measured at fair value 9.1

Payable to the Management Company - - - 1,018 1,018 - - - - Remuneration payable to the Trustee - - - 93 93 - - - - Accrued expenses and other liabilities - - - 1,250 1,250 - - - -

- - - 2,361 2,361 - - - -

NoteFair value Available Loans and Other Total Level 1 Level 2 Level 3 Totalthrough for sale receivables financialincome liabilities

30 June 2020 statement


Equity securities 61,844 - - - 61,844 61,844 - - - 61,844 - - - 61,844 61,844 - - -


Bank balances - - 20,651 - 20,651 - - - - Dividend and other receivable - - 254 - 254 - - - - Security deposits - - 2,600 - 2,600 - - - -

- - 23,505 - 23,505 - - - -


Payable to the Management Company - - - 825 825 - - - - Remuneration payable to the Trustee - - - 77 77 - - - - Accrued expenses and other liabilities - - - 3,723 3,723 - - - -

- - - 4,625 4,625 - - - -

9.1 The Fund has not disclosed the fair values for these financial assets and financial liabilities, as these are either short term in nature or repriced

periodically. Therefore, their carrying amounts are reasonable approximation of their fair values.

Carrying amount Fair value

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 as the Fund has incurred a net loss during the period.




10. TRANSACTIONS WITH CONNECTED PERSONS

10.1 Detail of transactions with connected persons during the period are as follows:


Remuneration of Management Company 517 435

Sindh sales tax on remuneration of Management Company 67 57


Issuance of 7,848 units (2019: 186,312 units) 747 15,000

Dividend Paid 879 -

Central Depository Company of Pakistan Limited - Trustee

Remuneration of the Trustee 52 41

Sindh sales tax on remuneration of the Trustee 7 14

Selttlement charges 7 9

Key Management Personnel - Directors and Officers of the Management Company and

their relatives

Issuance of 79,952 units (2019 : Nil units) 7,540 -

Dividend paid 39 -

Ten persent or more holding

Issuance of Nil units (2019: 12,744 units) - 1,000

Redemption of Nil units (2019 : 123,655 units) - 10,000

AWT Investments Limited - Provident Fund

Redemption of 34,337 units (2019: 5,132 units) 3,320 -

'September 30, 'June 30,

2020 2020

(Unaudited) (Audited)

10.2 Detail of balances outstanding at the period end with connected persons are as follows:


Remuneration payable to the Management Company 197 132

Sindh sales tax payable on remuneration of Management Company 171 162

Federal excise duty payable on remuneration of Management Company 1,145 1,145

Units held - 601,775 units (2020: 593,927 units) 54,208 27,808

Preliminary and floatation costs payable to Management Company 213 213




Sindh sales tax payable on remuneration payable to the Trustee 12 8

Security Deposit 100 100

Key Management Personnel - Directors and Officers and their relatives


Ten persent or more holding


11.

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

The Total Expense Ratio (TER) of the Fund for the period ended September 30, 2020 is 4.67% which include 0.91% representing government levy, Sindh

Workers' Welfare Fund and SECP fee.

Connected persons / related parties include AWT Investments Limited being the Management Company, Central Depository Company of Pakistan Limited

being the trustee, army welfare trust, parent company of the Management Company, other funds managed by the Management Company / parent compny,

associated companies (if any) of the management company, entities in which the above parties or their connected persons have a material interest, Key

Management Personnel and includes entities holding 10% or more units of the Fund as at 30 September 2020 or during the year. It also includes the staff

retirement funds of the above related parties / connected person. Details of the transactions and balances with the related parties / connected perons, other

than those which has been disclosed elsewhere are as follows:

For the quarter

ended September

30, 2020

For the quarter

ended

September 30,

2019

Transactions with connected persons are carried out in normal course of business at contracted rates and terms determined in accordance with market

norms.

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

TOTAL EXPENSE RATIO

12. GENERAL

12.1

12.2

13.

DATE OF AUTHORISATION

Figures have been rounded off to the nearest thousand rupees.

Corresponding figures have been rearranged and reclassified, wherever necessary, for the purpose of better presentation. No significant rearrangements or

reclassifications were made in this condensed interim financial information during the period.



This condensed interim financial information was authorized for issue on ______________ by the Board of Directors of the Management Company.

____________________ ________________


____________________


AWT Stock Fund

AWT STOCK FUND

AWT Stock Fund (formerly: PIML Value Equity Fund)








K.C.H.S.U Block 7&8 Bangalore Town Karachi

Legal Advisors Rizwan Faiz Associates, Apartment No. 011, Tariq Heights, Street No. 73, Sector F-11/1, Islamabad 44000

Bankers Samba Bank Limited JS Bank Limited

Silk Bank Limited Soneri Bank Limited Askari Bank Limited Summit Bank Limited MCB Bank Limited Dubai Islamic Bank Limited Meezan Bank Limited

CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES

AS AT SEPTEMBER 30, 2020


2020 2020

Note


ASSETS

Bank balances 4 14,908 8,430 Investments 5 93,340 51,105 Deferred formation cost - - Prepayment Dividend and other receivables 2,232 1,973 Security deposits 2,600 2,600 TOTAL ASSETS 113,080 64,108

LIABILITIES

Payable to the Management Company 628 428 Remuneration payable to the Trustee 21 10 Annual fee payable to Securities and Exchange Commission of Pakistan 5 12 Accrued expenses and other liabilities 6 3,236 3,026

TOTAL LIABILITIES 3,890 3,476

CONTINGENCIES AND COMMITMENTS 7 - -

NET ASSETS 109,190 60,632

Unit holders' funds 109,190 60,632

Number of units in issue 1,206,390 741,754

Net asset value per unit 90.51 81.74


AWT STOCK FUND

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

------Number of units -------

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



____________________ ________________


____________________


CONDENSED INTERIM INCOME STATEMENT (UN-AUDITED)

FOR QUARTER ENDED SEPTEMBER 30, 2020

For Quarter

ended

September 30,

2020

For Quarter

ended September

30, 2019

Note

INCOME

Return on- bank balances 237 296

Dividend income - 393

Gain on sales of held for trading investments-net (171) (681)

Net unrealized Gain/(loss) on investments classified 'at fair value

through profit or loss - held-for-trading' 7,125 (2,352) 7,191 $$ (2,344)

EXPENSES

Remuneration of AWT Investments Limited - Management Company 455 250 Sindh Sales tax on remuneration of Management Company 59 32 Remuneration of Central Depository Company of Pakistan Limited - Trustee 45 25 Sindh Sales remuneration of Central Depository Company of Pakistan Limited - Trustee 6 3 Annual fee to Securities and Exchange Commission of Pakistan 5 3 Amortization of deferred formation costs - 53 Listing Fee 6 6 Auditors' remuneration 58 57

Brokerage and settlement charges 187 124


Printing related costs - -

933 553

Net (Loss) /Income for the period before taxation 6,258 (2,897)

WORKERS WELFARE FUND 75 -

Taxation 8 - -

Net (Loss) /Income for the period after taxation 6,183 (2,897)

Allocation of net income for the period

(a) Net (Loss) / income for the period after taxation 6,183 - (b) Income already paid on units redeemed - -

6,183 -

Accounting income available for distributation

i Relating to capital gains / (loss) 6,954 - ii Excluding capital gains / (loss) (771) -

6,183 -


AWT STOCK FUND

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



____________________ ________________


____________________


CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)

For Quarter

ended September

30, 2020

For Quarter

ended September

30, 2019

Net (Loss) /Income for the period after taxation 6,258 (2,897)

Other comprehensive income for the quaeter: - -

Total comprehensive income for the Quarter 6,258 (2,897)

AWT STOCK FUND

FOR QUARTER ENDED SEPTEMBER 30, 2020

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




____________________ ________________


____________________


CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED)

For Quarter ended

September 30,

2020

For Quarter ended

September 30, 2019


Net (Loss) for the period after taxation 6,258 (2,897)

Adjustments:

Return / mark-up on;

- bank balances (237) (296)

Dividend income - (393)

Amortization of deferred formation costs - 53

Gain on sale of held for trading investments - net 171 681

Net unrealized (gain)/loss on investments classified 'at fair value

through profit or loss - held-for-trading' (7,125) 2,352

(933) (500)

(Increase) / Decrease in current assets

Investments - net (35,096) 16,261

Prepayments and other receivables (22) (13)

(35,118) 16,248

Increase / (Decreas) in current liabilities

Payable to Management Company 200 (63)


Annual fee payable to Securities and Exchange Commission of Pakistan (7) (94)

Accrued expenses and other liabilities 210 305

414 173

Return on bank balances and dividend received (259) 122

Net cash ganrate from operating activities (35,896) 16,043


Amounts received from issuance of units 45,262 2,505

Amounts paid on redemption of units (2,888) (34,667)

Net cash generated / (used) from financing activities 42,374 (32,162)

Net increas / (decreas) in cash and cash equivalents 6,478 (16,119)

Cash and Cash equivalents at the beginning of the quarter 8,430 19,827

Cash and Cash equivalents at the end of the quarter 14,908 3,707


AWT STOCK FUND


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



____________________ ________________


____________________


AWT STOCK FUND

CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUND (UNAUDITED)


Net assets at beginning of the period 78,840 (18,208) 60,632 96,968 (11,844) 85,124

Issue of 496,806 units (2019: 32,746 units)

- Capital value 40,609 - 40,609 2,636 - 2,636

- Element of loss 4,654 - 4,654 (131) - (131)

Total proceeds on issuance of units 45,263 - 45,263 2,505 - 2,505

Redemption of 32,170 units (2019: 437,517 units)

- Capital value (2,630) - (2,630) (35,229) - (35,229)

- Element of income (258) - (258) 563 - 563

Total payments on redemption of units (2,888) - (2,888) (34,666) - (34,666)

Element of loss and capital losses in

prices of units sold less those in units redeemed - net - - - - - -

Total comprehensive (loss) / income for the period - 6,183 6,183 - (2,897) (2,897)

Distribution during the period - - - - - -

Net assets as at end of the period 121,215 (12,025) 109,190 64,807 (14,741) 50,066


- Realized income at beginning of the period 12,242 (7,484)

- Unrealized income at beginning of the period (24,085) (4,359)

(11,843) (11,843)

Accounting income available for distribution:

Relating to capital gains 6,954 -

Excluding capital gains (771) -

6,183 -

Distribution during the period - -

Represented by:

- Realized income at end of the period (942) (12,388)

- Unrealized income at end of the period 7,125 (2,352)

Undistributed income at end of the period 6,183 (14,740)

Net assets value per unit at beginning of the period 81.74 80.53

Net assets value per unit at end of the period 90.51 76.75


____________________ ________________


Total



____________________


Capital Value Undistributed

income

Total Capital Value Undistributed

income

For the quarter ended

30 September,

2020 2019

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

AWT STOCK FUND

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)




2.1 STATEMENT OF COMPLIANCE

3.

3.1

3.1.1

3.2

AWT Stock Fund ("the Fund") was established under a Trust Deed, dated 15 May 2013, executed between AWT Investments

Limited as Management Company, a company incorporated under the Companies Act, 2017 and the Central Depository

Company of Pakistan Limited (CDC) as a Trustee. The Securities and Exchange Commission of Pakistan (SECP) registered the

Fund as a Notified Entity on 25 November 2013, under Regulations 44 of the Non Banking Finance Companies and Notified

Entities Regulations, 2008 (Establishment and Regulation) Rules.

The Management Company of the Fund has been licensed by the Securities and Exchange Commission of Pakistan (SECP) to

undertake asset management and investment advisory services as a Non-Banking Finance Company. The registered office of

AWT Investment Limited is situated at 3rd Floor, AWT Plaza, I.I Chandrigar Road, Karachi.

The Fund offers units for public subscription on a continuous basis. The units are transferable and can These can also be

redeemed by surrendering them to the Fund. The Fund is listed on the Pakistan Stock Exchange Limited

The Scheme is an ‘Open end Equity Scheme’ as per the criteria for the categorization of open-end collective investment

schemes specified by the Securities and Exchange on of Pakistan. The objective of the Fund is to achieve long term capital

growth by investing mainly in listed equity securities.

The Scheme is permitted to invest in secured, unsecured, listed equity market securities (subject to minimum limit of 70%

during the year based on quarterly average investment calculated on a daily basis) including treasury bills not exceeding 90

days maturity and cash or near cash instruments, including cash in bank accounts (excluding TDRs), equity securities not

listed on the stock exchange Investment outside Pakistan, including international listed securities and foreign currency bank

deposits (excluding TDRs), subject to such conditions as imposed by SECP and with the prior approval of SECP and SBP (upto

30%, subject to a cap of USD 15 million) and any other securities or instrument that may be permitted by commission (upto a

limit of 30%).

On 02 August 2018 Army Welfare Trust (AWT) acquired further 30% shares of the Management Company from Pak Brunei

Investment Company Limited. Now the Management Company is a wholly owned subsidiary of AWT.

This condensed interim financial information has been prepared in accordance with the approved accounting standards as

applicable in Pakistan for interim financial reporting. Approved accounting standards comprise of such International Financial

Reporting Standards (IFRSs) issued by the International Accounting Standards Board as are notified under the repealed

Companies Ordinance, 1984 (now Companies Act, 2017), the requirements of the Trust Deed, the NBFC Rules, the NBFC

Regulations and the directives issued by the SECP. Wherever the requirements of the Trust Deed, the NBFC Rules, the NBFC

Regulations or the directives issued by the SECP differ with the requirements of the IFRSs, the requirements of the Trust

Deed, the NBFC Rules, the NBFC Regulations or the directives issued by the SECP prevail.

The disclosures made in this condensed interim financial information have, however, been limited based on the

requirements of the International Accounting Standard 34: 'Interim Financial Reporting'. This condensed interim financial

information does 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, 2020.

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

The accounting policies and methods of computation adopted in the preparation of this condensed interim financial

information are the same as those applied in preparation of the financial statements of the Fund for the year ended June 30,

2020.

Reclassification of financial assets

During the current period IFRS-9 became applicable, according to the standard, all equity investments are to be measured at

fair value in the statement of financial position with value change recognized in profit or loss. Standard also retains an option

in respect of equity investments (other than held for trading) for which the entity may elect to report value change in 'other

comprehensive income'.However, the fund is not maintaining investment portfolio of 'available for sale' and considered not

to be relevant in these condensed interim financial information.

The Fund's financial risk management objectives and policies are consistent with those disclosed in the financial statements

as at and for the year ended June 30, 2020.


(Un-audited) (Audited)Note

4. BANK BALANCES

Current account 4 9

PLS savings accounts 4.1 14,904 19,818

14,908 19,827

4.1 These represent bank balances with commercial banks carrying market competitive markup rates.

5. INVESTMENTS

At fair value through income statement - held for trading

Listed equity securities 5.1 93,341 63,894

- -

93,341 63,894

5.1 Investments in securities at fair value through profit or loss - held for tradingOrdinary shares have a face value of Rs.10/- each unless stated otherwise.

At the Acquired Bonus / rights Disposed Holding Market % of % of beginning of during the received during during the at the end value net investee

Sectors / Companies the period period the period period of the period (Rupees in 000) assets capital

Oil and Gas Marketing Companies

Pakistan State Oil Company Limited 432 - - - 432 86 0.08 0.00 Pakistan Petroleum Limited - 113,000 - - 113,000 10,403 9.53 0.00

10,489 9.61

FertilizerEngro Corporation Limited 19,100 - - 19,100 - - - - Fauji Fertilizer Company Limited 47,000 - - 47,000 - - - -

- -

CementMaple leaf Cement Factory Limited - 266,500 - - 266,500 9,565 8.76 0.02

9,565 8.76

PharmaceuticalsSearle Company Limited 18,188 - - - 18,188 4,662 4.27 0.01 Glaxo Smithkline Lmited 25,000 - - - 25,000 4,591 4.20 0.01

9,253 8.47

Textile CompositeGul Ahmed Textile Mills Limited 140,500 51,500 - - 192,000 7,165 6.56 0.04 Nishat Mills Limited 68,100 20,000 - - 88,100 8,904 8.15 0.03 Nishaat (Chunian) Limited 109,000 - - - 109,000 4,294 3.93 0.05

20,364 18.64

Commercial BanksBank Alfalah Limited 143,500 81,000 - 7,966 216,534 7,531 6.90 0.01 National Bank of Pakistan 164,000 - - - 164,000 6,540 5.99 0.01 Habib Bank Limited - 68,000 - - 68,000 8,890 8.14 0.00 Meezan Bank Limited 24,000 16,000 4,000 - 44,000 3,617 3.31 0.00

26,579 24.34 - -

EngineeringMughal Iron & Steel Industries Limited 263 - - - 263 17 0.02 0.00

17 0.02

Technology & CommunicationNetsol Technologies Limited - 80,000 - - 80,000 4,809 4.40 0.09

4,809 4.40

Leasing CompaniesOrix Leasing Pakistan Limited 17,000 - - - 17,000 465 0.43 0.01

465 0.43 0.01

Food and Personal care Products - - Matco Foods Limited 83,000 144,000 - - 227,000 4,930 4.52 0.19 Frieslandcampins Engro Foods Limited 87,500 - - - 87,500 6,870 6.29 0.01

11,800 10.81

Held for trading investments as at 30 September 2020 93,341 85.47

Cost of held for trading investments as at 30 September 2020 96,814

Held for trading investments as at 30 June 2020 51,105

Cost of held for trading investments as at 30 June 2020 61,156

5.2

5.3 Following shares (mentioned in note 5.1) have been pledged with National Clearing Company of Pakistan Limited:September 30, June 30, September 30, June 30,

2020 2020 2020 2020

(Un-audited) (Audited) (Un-audited) (Audited)

Bank Alfalah Limited 100,000 100,000 3,478 3,357 Nishaat (Chunian) Limited 50,000 50,000 1,970 1,623

------------------------ Number of shares --------------------------

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

Finance Act, 2014 had introduced tax on bonus shares issued by the Companies. Most Equity Funds including the Fund have challenged the applicability of withholding tax provision on bonus shares before Honourable High Court of Sindh (“the Court”) on various legal grounds and have sought relief from the Court. In the Fund's case, up to the period end, tax in the shape of 202 shares of The Searle Company Limited

(30 June 20120: 202), 300 shares of Pakistan State Oil Company Limited (30 June 2020: 300) and 263 shares of Mughal Iron and Steel Industries Limited (30 June 2020: 263) had been withheld by CDC.

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


2020 2020


6. ACCRUED EXPENSES AND OTHER LIABILITIES

Auditors' remuneration 180 146

Provision for Sindh Workers' Welfare Fund 6.1 1,264 1,189

FED payable on management company's remuneration 6.2 942 942

Sales tax payable on Management Company remuneration 158 146

Payable against transaction in marketable securities 250 -

Other payable 442 603

3,236 3,026

6.1. PROVISION FOR SINDH WORKERS' WELFARE FUND

6.2


As per the requirements of the Finance Act, 2013, Federal Excise Duty (FED) at the rate of 16 percent on the remuneration of

the Management Company has been applied effective from 13 June, 2013. The Management Company 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) on 04 September 2013

While disposing the above petition through order dated 16 July 2011, the SHC declared the said provisions to be ultra vires

and as a result no FED is payable with effect from 01 July, 2016. However, the tax authorities subsequently filed appeal

against the decision of the SHC in the Supreme Court of Pakistan, which is pending for the decision.

Further, the Finance Act 2016 also introduced an amendment to the Federal Excise Act, 2005 whereby FED was withdrawn

on services of different industries including Non-Banking Financial Institutions, which are already subject to provincial sales

tax. The amount is payable to the Management Company for onward payment to the Government.

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

As a consequence of the 18th amendment to the Constitution of Pakistan, in May 2015 the Sindh Workers' Welfare Fund Act

(SWWF Act), 2014 was 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.0.5 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 MUFAP with the Sindh Revenue Board (SRB) collectively on behalf of various asset management companies (including the

Management Company of the Fund) whereby it was contested that mutual funds should be excluded from the ambit of the

SWWF Act as these were not industrial establishments but were pass through investment vehicles and did not employ

workers. The SRB held that mutual funds were included in the definition of financial institutions as per the Financial

Institution (Recovery of Finances) Ordinance, 2001 and were, hence, required to register and pay SWWF under the SWWF

Act. Thereafter, MUFAP has taken up the matter with the Sindh Finance Ministry to have CISs I mutual funds excluded from

the applicability of SWWF which is currently pending. Accordingly, as a matter of abundant caution, MUFAP has

recommended to

all its members to record a provision for SWWF from the date of enactment of SWWF Act, 2014 (i.e. Starting from May 21,

2015).

The Management Company, being prudent, recognized provision for SWWF amounting to Rs. 1.264 million as at September

30, 2020 in these financial statements. Had the provision not been made, net assets value per unit at September 30, 2020

would have been higher by Rs. 1.05 per unit (June 30, 2020: Rs 1. 60 per unit).

FED PAYABLE ON MANAGEMENT COMPANY'S REMUNERATION

In view of above, the Management Company, being prudent, is carrying provision for FED amounting to Rs. 0.942 million.

Had the provision not been retained, NAV per unit of the Fund as at September 30, 2020 would have been higher by Rs. 0.78

per Unit (June 30, 2020: 1.27 per unit).

The Fund had no contingency or commitment at the period end except as those mentioned else where in these condensed

interim financial statements.

8.

9. Fair value of financial instruments

On-balance sheet financial instruments Fair value Available Loans and Other Total Level 1 Level 2 Level 3 Totalthrough for sale receivables financial

Note income liabilities30 September 2020 statement


Listed equity securities 93,340 - - - 93,340 93,340 - - 93,340


Bank balances - - 14,908 - 14,908 - - - - Other receivables - - 569 - 569 - - - - NCCPL Security deposits - - 2,600 - 2,600 - - - -

- - 18,077 - 18,077 - - - -


Payable to the Management Company - - - 628 628 - - - - Remuneration payable to the Trustee - - - 21 21 - - - - Accrued expenses and other liabilities - - - 622 622 - - - -

- - - 1,271 1,271 - - - -

NoteFair value Available Loans and Other Total Level 1 Level 2 Level 3 Totalthrough for sale receivables financialincome liabilities

30 June 2020 statement


Equity securities 51,105 - - - 51,105 51,105 - - - 51,105 - - - 51,105 51,105 - - -


Bank balances - - 8,430 - 8,430 - - - - other receivable - - 60 - 60 - - - - NCCPL Security deposits - - 2,600 - 2,600 - - - -

- - 11,090 - 11,090 - - - -


Payable to the Management Company - - - 428 428 - - - - Remuneration payable to the Trustee - - - 10 10 - - - - Accrued expenses and other liabilities - - - 300 300 - - - -

- - - 738 738 - - - -

9.1 The Fund has not disclosed the fair values for these financial assets and financial liabilities, as these are either short term in nature or repriced

periodically. Therefore, their carrying amounts are reasonable approximation of their fair values.



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 as the Fund has incurred a net loss during the period.



10. TRANSACTIONS WITH CONNECTED PERSONS

10.1 Detail of transactions with connected persons during the period are as follows:

AWT Investments Limited (Management Company)

Remuneration of Management Company 455 250

Sindh sales tax on remuneration of Management Company 59 32


Issuance of 351,919 units (2019: Nil units) 32,000 -

Redemption of Nil units (2019: 186,243 units) - 15,000


Remuneration of the Trustee 45 25

Sindh sales tax on remuneration of the Trustee 6 3

Settlement Charges 7 9


Issuance of 34,904 units (2019: Nil units) 3,320 -

Ten percent or more holding

Issuance of Nil units (2019: 32,671 units) - 2,500

Redemption of Nil units (2019: 123,396 units) - 10,000

'September 30, 'June 30, 2020 2020


10.2 Detail of balances outstanding at the period end with connected persons are as follows:

AWT Investments Limited (Management Company)

Remuneration payable to the Management Company 187 99

Sindh sales tax payable on remuneration of Management Company 158 146

Federal excise duty payable on remuneration of Management Company 942 942


Preliminary and floatation costs payable to Management Company 109 109

Selling, Marketing and Back office expenses 332 220



Sindh sales tax payable on remuneration payable to the Trustee 2 1

Security deposit 100 100


Units held - 34,904 units (2020: Nil units) 3,159 -

Ten percent or more holding


Connected persons / related parties include AWT Investments Limited being the Management Company, Central Depository Company of

Pakistan Limited being the trustee, Army Welfare Trust which is the parent entity of the Management Company, other funds managed by

the Management Company, associated companies (if any) of the management company / parent entity of the management company,

entities in which the above parties or their connected persons have a material interest, Key Management Personnel and includes entities

holding 10% or more units of the Fund as at 30 September 2020. It also includes the staff retirement funds of the above related parties /

connected person. Details of the transactions and balances with the related parties / connected perons, other than those which has been

disclosed elsewhere are as follows:

Transactions with connected persons are carried out in normal course of business at contracted rates and terms determined in accordance

with market norms.

For Quarter

ended September

30, 2019

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

For Quarter

ended

September 30,

2020

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

11.

12. GENERAL

12.1

12.2

13.

Figures have been rounded off to the nearest thousand rupees.

This condensed interim financial information was authorized for issue on __________________ by the Board of Directors of the

Management Company.



The Total Expense Ratio (TER) of the Fund for the quarter ended September 30, 2020 is 4.43% which include 0.69% representing government

levy, Sindh Workers' Welfare Fund and SECP fee.

TOTAL EXPENSE RATIO

Corresponding figures have been rearranged and reclassified, wherever necessary, for the purpose of better presentation. No significant

rearrangements or reclassifications were made in this condensed interim financial information during the period.

DATE OF AUTHORISATION

____________________ ________________


____________________


AWT Asset Allocation Fund

AWT

ASSET ALLOCATION FUND

AWT Asset Allocation Fund


Board of Directors Lt. General Najib Ullah Khan (Retd.) Chairman Maj. General Akhtar Iqbal (Retd.) Director Mr. Tariq Iqbal Khan Director Mr. Malik Riffat Mehmood Director Mr. Salman Haider Sheikh Chief Executive Officer Mr. Raheel Qamar Director





Auditors KPMG Taseer Hadi & Co. Chartered Accountants Sheikh Sultan Trust Building No. 2 Beaumont Road Karachi. 75530


Street No. 73 Sector F-11/1, Islamabad 44000

Bankers Samba Bank Limited JS Bank Limited Silk Bank Limited Soneri Bank Limited Askari Bank Limited Summit Bank Limited MCB Bank Limited Dubai Islamic Bank Limited Meezan Bank Limited

AWT Asset Allocation FundCONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIESAs at 30 Sept 2020

September 30 June 30Note 2020 2020

Assets Un-Audited Audited

Bank balances 4 4,918 5,422 Investments 5 299 236 Security deposits 2,600 2,600 Dividend, advances and other receivables 2,891 2,948 Deferred formation cost 2,893 2,893 Total assets 13,601 14,099

Liabilities

Payable to AWT Investments Limited - Management Company 388 496 Payable to Central Depository Company of Pakistan Limited - Trustee 5 1 Payable to the Securities and Exchange

41 41 Accrued expenses and other liabilities 6 6,176 6,107 Total liabilities 6,610 6,645

Net assets 6,991 7,454

Unit holders' fund (as per statement attached) 6,991 395,455

Contingencies and commitments 7

Number of units in issue 77,942 83,606



______________________ ______________________ ________________Chief Executive Officer Chief Financial Officer Director


------------------- (Number of units) ------------------

(Rupees)


Commission of Pakistan

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

AWT Asset Allocation FundCONDENSED INTERIM INCOME STATEMENTFOR THE QUARTER ENDED SEPTEMBER 30,2020 (UNAUDITED)

2020 2019Note

IncomeDividend income - 842 Return / mark-up calculated using the effective interest method:- Bank balances at amotised cost 63 6,628 - Certificate of Musharika - Held at amortised cost - - - Term deposit receipts - Held at amortised cost - 312 - Government Securities - Held at fair value through profit or loss - - - Clean placements at amortised cost - 1,312 Net realised gain / (loss) on sale of investments - 1,664 Unrealised gain / (loss) on revaluation of investments at fair value

through profit or loss 63 (5,127) 126 5,631

ExpensesRemuneration of the Management Company 35 1,971 Sindh Sales Tax on the Management Company's remuneration 5 256 Selling and marketing expenses - - Remuneration of Central Depository Company of Pakistan

Limited - Trustee 4 197 Sindh Sales tax on Trustee remuneration 1 26 Annual fee to the Securities and Exchange Commission of Pakistan - 58 Amortisation of deferred formation cost - 123 Auditors' remuneration - 55 Annual listing fee 7 7 NCCPL fee 68 90 Bank and settlement charges - 22 Other Expenses (35) - Securities transaction cost - - Total operating expenses 85 2,805

Net income / (loss) from operating activities 41 2,826

Provision for Sindh Workers' Welfare Fund (1) -

Net income / (loss) for the year before taxation 40 2,826

Taxation 9 - -

Net income / (loss) for the year after taxation 40 2,826

Allocation of net income for the periodNet income for the period after taxation 40 2,826 Income already paid on units redeemed 189,234 (41,679) Accounting income available for distribution 189,274 (38,853)

Accounting income available for distribution- Relating to capital gains 63 6,655 - Excluding capital gains 189,211 (5,797)

189,274 858


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


September 30,

____________________ ______________________Chief Executive Officer Chief Financial Officer Director

________________

AWT Asset Allocation FundCONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOMEFOR THE QUARTER ENDED SEPTEMBER 30,2020 (UNAUDITED)

2020 2019

Net income / (loss) for the year after taxation 40 2,826

Other comprehensive income for the year - -

Total comprehensive income / (loss) for the year 40 2,826


_____________________ ______________________Chief Executive Officer Chief Financial Officer Director

________________


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


September 30,

AWT Asset Allocation FundCONDENSED INTERIM CASH FLOW STATEMENTFOR THE QUARTER ENDED SEPTEMBER 30,2020 (UNAUDITED)

Note 2020 2019

-----------(Rupees in '000)--------Cash flows from operating activities

Net income / (loss) for the year before taxation 40 2,826

Adjustments for:Profit on deposits with banks calculated using effective yield method (63) (6,628) Profit on Certificate of Musharika calculated using effective yield method - - Profit on Government Securities - Held at fair value through profit or loss - - Profit on Term deposit receipts - Held at amortised cost - - Profit on Clean placements at amortised cost - - Dividend income - (842) Net realised (gain) / loss on sale of investments - (1,664) Unrealised (gain) / loss on revaluation of investments at fair value through (63) 5,127

profit or lossAmortisation of deferred formation cost - 123

(86) (1,058)

Decrease / (increase) in current assetsInvestments (63) (119,955) Prepayment and other receivables 144 (18) Security deposits - -

81 (119,973)

Increase / (decrease) in current liabilitiesPayable to management company (108) 136 Payable to trustee 4 6 Payable to Securities and Exchange Commission of Pakistan - (243) Accrued expenses and other liabilities 69 146

(35) 45

Profit received on Bank balances and term deposit receipts (1) 5,082 Profit on government securities - - Dividend received - 618 Profit on Clean placements at amoritised cost - - Profit received on Certificate of Musharika at amortised cost - - Net cash generated from / (used in) operating activities (41) (115,286)

Cash flows from financing activities

Amount received on issuance of units - - Amount paid on redemption of units (463) (7,805) Net cash (used in) / generated from financing activities (463) (7,805)

Net (decrease) / increase in cash and cash equivalents (504) (123,091)

Cash and cash equivalents at the beginning of the year 5,422 262,771 Cash and cash equivalents at the end of the year 4,918 139,680


_____________________ ______________________Chief Executive Officer Chief Financial Officer

September 30,

Director________________

(Management Company) For AWT Investments Limited

AWT Asset Allocation FundStatement of Movement in Unit Holders' FundFOR THE QUARTER ENDED SEPTEMBER 30,2020 (UNAUDITED)

Net assets at beginning of the year 75,484 (68,030) 7,454 469,322 (68,888) 400,434

Issuance of NIL units (Year Ended 2020: NIL units)

- Capital value - - - - - -- Element of income / (loss) - - - - - -Total proceeds on issuance of units - - - - - -

Redemption of units (Year Ended 2020: 4,996,677 units)

- Capital value (463) (463) (7,805) - (7,805) - Element of income / (loss) - - - - - Total payments on redemption of units (463) - (463) (7,805) - (7,805)

Total comprehensive income for the year - - - 2,826 2,826

Net assets as at end of the year 75,021 (68,030) 6,991 461,517 (66,062) 395,455


- Realized loss - (27,751) - Unrealized loss (41,137) (41,137)

(41,137) (68,888) Accounting income available for distribution:Relating to capital gains 63 (3,463) Excluding capital gains 189,211 6,289

189,274 2,826

Net loss for the period after taxation -

Undistributed income at end of the year 148,137 (66,062)

Undistributed income carried forward comprises of:- Realized loss 148,074 (60,935) - Unrealized income / (loss) 63 (5,127)

148,137 (66,062)

(Rupees) (Rupees)

Net assets value per unit at beginning of the year 79.39 78.82

Net assets value per unit at end of the year 89.70 79.39


____________________ ____________________ ________________Chief Executive Officer Chief Financial Officer Director

September 30,2020 2019


Capital value

Undistributed income

Total Capital value

Undistributed income

Total

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


AWT Asset Allocation FundNOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL INFORMATIONFOR THE QUARTER ENDED SEPTEMBER 30,2020 (UNAUDITED)


1.1

1.2

1.31.4

1.5

2. BASIS OF PREPARATION2.1 Statement of Compliance

This condensed interim financial information has been prepared in accordance with the approved accounting standards as applicable in Pakistan for interim financial reporting. Approved accounting standards comprise of such International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board as are notified under the repealed Companies Ordinance, 1984 (now Companies Act, 2017), the requirements of the Trust Deed, the NBFC Rules, the NBFC Regulations and the directives by the SECP. Wherever the requirements of the Trust Deed, the NBFC Rules, the NBFCRegulations or the directives issued by the SECP differ with the requirements of the IFRSs , the requirements of the Trust Deed, theNBFC Rules, the NBFC Regulations or the directives issued by the SECP prevail.

The disclosures made in this condensed interim financial information have, however, been limited based on the requirements of the International Accounting Standard 34: 'Interim Financial Reporting'. This condensed interim financial information does 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, 2020

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, JUDGEMENT AND RISK MANAGEMENT

3.1 The accounting policies and methods of computation adopted in the preparation of this condensed interim financial information are the same as those applied in preparation of the financial statements of the Fund for the year ended June 30, 2020, except for the following:

3.1.1 Reclassification of financial assetsDuring the current period IFRS-9 became applicable, according to the standard, all equity investments are to be measured at fair value in the statement of financial position . with value change recognized in profit or loss. Standard also retains an option in respect of equity investments (other than held for trading) for which the entity may elect to report value change in 'other comprehensive income'..However, the fund is not maintaining investment portfolio of 'available for sale' and considered not to be relevant in these condensed interim financial information.

AWT Asset Allocation Fund ("the Fund") was established under a Trust Deed, dated September 29, 2015, executed between AWT Investments Limited as Management Company, a company incorporated under the repealed Companies Ordinance, 1984 (now Companies Act, 2017) and the Central Depository Company of Pakistan Limited (CDC) as the Trustee, also incorporated under the repealed Companies Ordinance, 1984 (now Companies Act, 2017). The Securities and Exchange Commission of Pakistan (SECP) registered the Fund as a Notified Entity on October 15, 2015, under Regulations 44 of the Non Banking Finance Companies and Notified Entities Regulations, 2008 (Establishment and Regulation)

At 31 December 2019, size of AWT Asset Allocation Fund was Rs. 56.06 million. The breach of minimum size specified above started from 26 December 2019 due to the fact of redemption of units amounting to Rs. 367.08 million between 24th-26th December 2019. In order to address the matter, Management Company initiated the process of merger of Asset Allocation Fund (AAF) with and into Stock Fund and applied for NOC with CDC on February 07, 2020 and received the said NOC on February 28, 2020. Just before the completion of merger in April 2020, the country was put under lockdown due to COVID-19 situation and hence the merger could not be completed. Due to COVID-19, the SECP allowed a general relaxation of further 90 days however, the same has also expired. These events indicate that a material uncertainty exists that may cast significant doubt on the Fund's ability to continue as a going concern. Subsequent to the year end, the Management Company has decided that instead of merger of AAF with and into Stock Fund, AAF will be converted into a money market fund and an investor expressed its interest to invest Rs. 100 million. Accordingly, the Management Company revoked the application for merger with Stock Fund and obtained the CDC (Trustee) consent for aforementioned conversion. Subsequent to CDC’s consent another investor has expressed its interest to invest Rs. 100 million and now the

aggregate amount of proposed investments stands at Rs. 200 million. Once Board of Directors of the Management Company approve the said conversion plan, approval of unitholders and SECP will be sought and the management is very much positive in the light of expression showed by investors to get the required approvals.

The Fund is an open end mutual Fund and is listed on the Pakistan Stock Exchange. The Fund offers units for public subscription on a continuous basis. These can be redeemed by surrendering them to the Fund at the option of the unit holder.The Scheme is an ‘Open end Asset Allocation Scheme’ as per the criteria for the categorisation of open end collective investment schemes

As per regulation 54 (3a) of Non-Banking Finance Companies and Regulations, 2008, minimum size of an Open end Scheme shall be Rs. 100 million rupees at all times during the life of the scheme. Subject to the above, if at any time the size of any Open End Scheme falls below the minimum size specified above, the Management Company shall ensure compliance within three months of the breach and if the fund size remains below the minimum fund size limit for consecutive ninety days, the Asset Management Company shall immediately intimate the grounds to the SECP upon which it believes that the Open End Scheme is still commercially viable and its objective can still be achieved. Regulation 54(3d) of

Title to the assets of the Fund is held in the name of Central Depository Company of Pakistan Limited as a Trustee of the Fund.

Sep, 30 Jun, 304. BANK BALANCES Note 2020 2020

Profit and loss sharing accounts 5.1 4,918 5,422

4.1 These accounts carry profit rate ranging from 8.00% to 14.00% (30 June 2019: 7.10% to 12.80%) per annum.Sep, 30 Jun, 30

5. INVESTMENTS Note 2020 2020

Investments by category

At fair value through profit or lossListed equity securities 6.1 299 236

At amortised costCertificate of Musharika - -

299 236

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

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

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6 ACCRUED EXPENSES AND OTHER LIABILITIES Note Sep 30, 2020 Jun 30, 2020

Federal Excise Duty 13.1 2,644 2,644 Provision of Sindh Worker Welfare Fund 13.2 3,325 3,324 Fee payable to National Clearing Company of Pakistan 68 - Auditors' remuneration payable 116 116 Payable against printing, postage and stationery 23 23 Payable against investment purchase - -

6,176 6,107

6.1 As per the requirements of the Finance Act, 2013, Federal Excise Duty (FED) at the rate of 16 percent on theremuneration of the Management Company has been applied effective from June 13, 2013. The Management Companyis of the view that since the remuneration is already subject to the provincial sales tax, further levy of FED may result indouble taxation, which does not appear to be the spirit of the law, hence, a petition was collectively filed by the MutualFund Association of Pakistan with the Sindh High Court (SHC) on September 04, 2013. While disposing the above petitionthrough order dated July 16, 2016, the SHC declared the said provisions to be ultra vires and as a result no FED ispayable with effect from July 01, 2016. However, the tax authorities subsequently filed appeal against the decision of theSHC in the Supreme Court of Pakistan, which is pending for the decision.

Furthermore, the Finance Act 2016 also introduced an amendment to the Federal Excise Act, 2005 whereby FED waswithdrawn on services of different industries including Non-Banking Financial Institutions, which are already subject toprovisional sales tax. This amount is payable to the Management Company for onward payment to the government.

However, since the appeal is pending in the Supreme Court of Pakistan, the Management Company, as a matter ofabundant caution, has retained provision for FED aggregating to Rs. 2.644 million.

6.2 Provision for Sindh Workers' Welfare Fund is being made on a daily basis pursuant to MUFAP's recommendation to allits members on January 12, 2017, against the backdrop of the Sindh Revenue Board (SRB) letter to mutual funds inJanuary 2016 whereby SRB directed the mutual funds to register and pay Sindh Workers Welfare Fund (SWWF) for theaccounting year closing on or after December 31, 2013. This is on the premise that mutual funds are included indefinition of financial institutions in the Financial Institutions (Recovery of Finance) Ordinance, 2001 hence WWF is

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

payable by them. Though MUFAP has taken up the matter with the Sindh Finance Ministry to have CISs / mutual fundsexcluded from the applicability of SWWF, but as a matter of abundant caution management has recorded SWWF at 2%of the net income earned by a Fund effective from April 12, 2016 (the date of the commencement of the Fund'soperation).

The total provision for SWWF till September 30, 2020 is Rs. 3.325 million (30 June 2020: Rs. 3.324 million).


A show cause notice (SCN) under section 161(1A) of Income Tax Ordinance, 2001 has been issued alleging that theFund did not / partially deducted withholding taxes from various payments made during the tax year 2017. The Fundresponded to the SCN by submitting the requisite information of withholding tax paid challans and expenses schedulesupon which withholding taxes were applicable. Thereafter, no response has been received by the Fund. Managementexpects no unfavourable outcome on this matter.

The Fund had no contingency or commitment at the year end except as those mentioned elsewhere in these financialstatements.

8. TOTAL EXPENSE RATIO

9. TAXATION

10 TRANSACTIONS WITH RELATED PARTIES / CONNECTED PERSONS

10.1 Balances with related parties / connected persons Note Sep 30, 2020 Jun 30, 2020 as at period end

AWT Investments Limited - Management Company of the FundPayable to the Management Company 388 496

Central Depository Company of Pakistan Limited - TrusteeRemuneration payable to the Trustee 5 1 Security Deposit 6 100 100

Entities holding 10% or more units in issueUnits held - 64,948 (30 June 2020: 64,948) units 5,826 5,791

Connected persons / related parties include AWT Investments Limited being the Management Company, Central Depository Company of Pakistan Limited being the trustee, other funds managed by the Management Company, associated companies (if any) of the management company , entities in which the above parties or their connected persons have a material interest, Key Management Personnel and includes entities holding 10% or more units of the Fund as at September 30, 2020, or during the quarter. It also includes the staff retirement funds of the above related parties / connected person. Details of the transactions and balances with the related parties / connected perons, other than those which has been disclosed elsewhere are as follows:

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

The Fund's income is exempt from Income Tax as per clause (99) of part I of the Second Schedule to the Income Tax Ordinance, 2001 subject to the condition that not less than 90% of the accounting income for the year as reduced by capital gains whether realised or unrealised is distributed amongst the unit holders. Provided that for the purpose of determining distribution of at least 90% of accounting income, the income distributed through bonus shares, units or certificates as the case may be, shall not be taken into account. Furthermore, as per regulation 63 of the Non-Banking Finance Companies and Notified Entities Regulations, 2008, the Fund is required to distribute 90% of the net accounting income other than capital gains to the unit holders. The Fund has distributed more than ninety percent of the Fund's accounting income for the year as reduced by capital gains, whether realised or unrealised, to its unit holders during the year. Accordingly, no provision has been made in the financial statements for the quarter ended September 30, 2020.

The Securities and Exchange Commission of Pakistan (SECP) vide directive no. SCD/PRDD/Direction/18/2016 dated July 20, 2016, requires that Collective Investment Scheme (CIS) shall disclose Total Expense Ratio (TER) in the financial statements of CIS / the Fund. As per S.R.O 639 (I)/2019, the limit towards expense ratio has been revised from 4.00% to 4.50% for Equity, Balanced, Asset Allocation and Capital protected (dynamic asset allocation-direct exposure) schemes. The total expense ratio of the Fund for the quarter ended September 30, 2020, is 4.48% (30 June 2020 : 3.38%) which excludes 0.36% (30 June 2020: 0.31%) representing government levy, Sindh Worker's Welfare Fund and SECP fee.

10.2 Detail of transactions with connected persons as at period end

AWT Investments Limited - Management Company of the FundRemuneration of the Management Company 35 4,066 Selling and marketing expenses - 146 Sindh Sales Tax on Management company remuneration 5 529

Central Depository Company of Pakistan Limited - TrusteeRemuneration of the Trustee 4 407 Sindh Sales Tax on Trustee remuneration 1 53 Annual, transaction, custodian, CDS connection fee 100 100

AWT - Staff Provident FundRedemption of Nil Units (30 June 2020: Nil Units) - -

10.3

10.4

10.5 This reflects the position of related party / connected person status as of September 30, 2020.

11. FAIR VALUE OF FINANCIAL INSTRUMENTS

-

-

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

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 i.e. listed equity shares are based on the quoted market prices at the close of trading on the year 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.

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

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).

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.

Purchase and redemption of units of the Fund by related parties / connected persons are recorded at the applicable net asset value per unit. Other transactions are at agreed rates.

Remuneration payable to the Management Company and the Trustee have been determined in accordance with the provisions of NBFC Regulations and the Trust Deed respectively.


Note

Financial assets measured at fair value

Investments 299 - - 299 299 - 299

Financial assets not measured at fair value

Bank balances 11.1 - - 4,918 4,918 Security deposits 11.1 - - 2,600 2,600 Other receivables 11.1 - - 990 990

- - 8,508 8,508

Financial liabilities not measured at fair value

Payable to AWT Investments Limited - Management Company 11.1 - - 388 388 Payable to Central Depository Company ofPakistan Limited - Annual fee payable to the 11.1

Securities and Exchange Commission of 11.1 - Pakistan - Trustee 11.1 - - 5 5

Accrued expenses and other liabilities 11.1 - - 140 140 - - 533 533


Note

Financial assets measured at fair value

Investments 236 - - 236 236 - 236

Financial assets not measured at fair value

Bank balances 11.1 - - 5,422 5,422 Security deposits 11.1 - - 2,600 2,600 Other receivables 11.1 - - 1,071 1,071

- - 9,093 9,093

Financial liabilities not measured at fair value

Payable to AWT Investments Limited - Management Company 11.1 - - 496 496 Payable to Central Depository Company of

Pakistan - Trustee 11.1 - - 1 1 Accrued expenses and other liabilities 11.1 - - 140 140

- - 637 637

11.1

Designated as at fair

value through profit or

loss

Amortised cost

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy.

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

The Fund has not disclosed the fair values for these financial assets and financial liabilities, as these are either short term in nature or repriced periodically. Therefore, their carrying amounts are reasonable approximation of fair value.

September 30, 2020Carrying amount Fair value


through profit or

loss

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June 30, 2020Carrying amount Fair value


through profit or loss

Designated as at fair

value through profit

or loss

Amortised cost

12. GENERAL

Figures have been rounded off to the nearest thousand Rupees.

Corresponding figures have been rearranged or reclassified, where necessary, for the purpose of better presentation the effect of which is notmaterial

13. DATE OF AUTHORISATION FOR ISSUE

These financial statements were authorized for issue by Board of Directors of the Management Company on _______________.

____________________ _____________________ ___________________Chief Executive Officer Chief Financial Officer Director


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