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JS Cash FundQuarterly Report for the period

ended 30 September, 2017

Managing Mutual Funds Better!

JS Cash Fund

CONTENTS

Vision and Mission Statement

Organization

Directors' Report to the Unit Holders

Condensed Interim Statement of Assets and Liabilities

Condensed Interim Income Statement

Condensed Interim Statement of Comprehensive Income

Condensed Interim Cash Flow Statement

Condensed Interim Statement of Movement in Unit Holders' Fund

Notes to the Condensed Interim Financial Statements

02

03

04

06

07

08

09

10

11

01

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

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

BROAD POLICY OBJECTIVES

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

JS Cash Fund

02

JS Cash Fund

ORGANIZATION

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

Board of Directors Basir Shamsie ChairmanHasnain Raza Nensey Chief Executive OfficerMuhammad Yousuf Amanullah Non Executive DirectorSuleman Lalani Non Executive DirectorMuhammad Raza Dyer Non Executive DirectorKamran Jafar Non Executive DirectorAhsen Ahmed Independent DirectorAsif Reza Sana Independent Director

Audit Committee Asif Reza Sana ChairmanMuhammad Raza Dyer MemberSuleman Lalani Member

Chief Financial Officer& Company Secretary Muhammad Khawar Iqbal

Trustee MCB Financial Services Ltd.4th Floor, Perdesi House2/1, R-Y-16, Old Queens Road,Karachi - 75530

Auditors KPMG Taseer Hadi & CoChartered Accountants

Legal Adviser Bawaney & Partners

03

mailto:[email protected]

http://www.jsil.com

DIRECTORS' REPORT TO THE UNIT HOLDERS

The Board of Directors of JS Investments Limited has pleasure in presenting to you the un-audited Financial Statements of JS Cash Fund (the Fund) for the quarter ended September30, 2017.

Money Market ReviewDuring the 1QFY18, amid controlled food inflation, CPI trimmed down to 3.39% YoY against3.86% YoY during the same period last year.

The GoP only managed to raise PKR 52.41 billion in one of three PIB auctions against atarget of PKR 300 billion during the period while the remaining auctions saw bids beingrejected. Market participation was seen to shift from lower tenor to 5 year and 10 year PIBs.In the last PIB auction the cut off yield for 3, 5 and 10 years averaged at 6.40%, 6.90% and7.94% respectively.

Through T-Bill auctions, the government raised PKR 4,330.43 billion against a target of PKR3,900 billion with skewed participation towards shorter tenor T-Bill. In the last T-Bill auctionof 1QFY18, the cut off yields for 3 and 6 month T-Bill averaged at 5.99%, 6.01% and nobids were received for 12 month T-Bill, respectively.

The average 3M, 6M and 9M KIBOR rose by 12bps in 3M and 6M YoY while 14bps YoY in9M for the 1QFY18 period averaging at 6.14%, 6.15% and 6.44% respectively as against6.02%, 6.03% and 6.30% in 1QFY17.

Review of Fund PerformanceThe Fund return was 4.96% (Annualized) during the quarter ended September 30, 2017agianst the benchmark return of 5.21%. Net Assets moved from PKR. 821.38 million toPKR. 639.41 million as at September 30, 2017.

Fund and Asset Manager RatingJCR-VIS Credit Rating Company Limited has reaffirmed Fund Stability Rating of “AA+ (f)”(Double A Plus (f)) to the Fund.

JCR-VIS Credit Rating Company Limited has assigned Management Quality Rating of “AM2“(AMTwo) to JS Investments Limited. The rating denotes high management quality of the ManagementCompany.

AcknowledgmentThe directors express their gratitude to the Securities and Exchange Commission of Pakistanand MCB Financial Services Limited (MCBFSL) for their valuable support, assistance andguidance. The Board also thanks the employees of the Management Company for theirdedication and hard work and the unit holders for their confidence in the Management.

Hasnain Raza NenseyChief Executive OfficerKarachi: October 25, 2017

04

JS Cash Fund

M. Raza DyerDirector

05

JS Cash Fund

25

821.38639.41

4.96% 5.21%

CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIESAS AT 30 SEPTEMBER 2017

30 September2017

30 June2017

Note -------------Rupees-------------(Unaudited) (Audited)

AssetsBank balances 6 188,574,173 523,373,701Investments 7 456,237,100 309,150,860Deposit, prepayments and other receivables 8 1,375,524 984,837Total assets 646,186,796 833,509,398

LiabilitiesRemuneration payable to Management Company 264,383 284,852Sales Tax payable on the remuneration of the Management Company 618,586 621,313Federal Excise Duty (FED) payable on Management Company's remuneration 9 3,803,127 3,803,127Remuneration payable to Trustee 74,027 82,171Sales Tax payable on the remuneration of the Trustee 9,620 10,675Annual fee payable to Securities and Exchange Commission of Pakistan 131,558 406,834Dividend payable (Including Unclaimed Dividend) 182 649,556Accrued expenses and other liabilities 10 1,876,148 6,267,473Total liabilities 6,777,631 12,126,002

Contingencies and commitments 11 - -

Net asset Rupees 639,409,165 821,383,396

Unit holders' funds Rupees 639,409,165 821,383,396

Number of units in issue Number 6,212,987 8,081,468

Net assets value per unit Rupees 102.91 101.64

The annexed notes from 1 to 15 form an integral part of these condensed interim financial statements.

JS Cash Fund

06

DirectorChief Executive Officer Chief Financial Officer

For JS Investments Limited(Management Company)

CONDENSED INTERIM INCOME STATEMENT (UNAUDITED)FOR THE QUARTER ENDED 30 SEPTEMBER 2017

Note_________________________________

30 September2017

30 September2016

IncomeMark-up / interest income on bank balances and held for trading investmentsGain / (Loss) on sale of held for trading investments - netUnrealised gain / (loss) on held for trading investments - netTotal

Expenses

Remuneration of the Management CompanySindh sales tax on Management Company's remunerationRemuneration of the TrusteeSindh sales tax on Trustee remunerationAnnual fee to the Securities and Exchange Commission of PakistanSecurities transaction costCDC Annual Fee ExpensesListing feeSecp supervisory fee on listing feeMutual fund rating feeBank and settlement chargesAuditors' remunerationPrinting chargesProvision for Sindh Workers' Welfare FundOther expenses

Net income for the period

Allocation of Net Income For the Period

Income already paid on units redeemed

Accounting Income available for distribution:Relating to Capital Gain /(loss)Excluding Capital Gain


Quarter ended

10,619,331 9,581 3,005

10,631,917

877,231 114,040 245,624

31,932

131,581 - -

6,250 625

64,085 18,285 69,813 30,792

177,324 175,448

1,943,030

8,688,887

1,058,013

12,586 7,618,288 7,630,874

8,688,887

9,506,189 (23,714)

- 9,482,475

740,947 96,323

207,464 26,970

111,139 11,391 19,481 12,500

1,250 91,853 13,321 83,220 20,000

- 148,188

1,584,047

7,898,428

2,080,812

(23,714) 5,841,330 5,817,616

7,898,428

10.1

Rupees

07

JS Cash Fund



Net income for the period taxation 8,688,887 7,898,428Other comprehensive income for the period - -

Total comprehensive income for the period 8,688,887 7,898,428


CONDENSED INTERIM STATEMENT OF COMPREHENSIVEINCOME (UNAUDITED)FOR THE QUARTER ENDED 30 SEPTEMBER 2017

Rupees

Quarter ended

30 September2017

30 September2016

JS Cash Fund

08



Cash flows from operating activities

Net income for the period

Adjustments for:(Gain) / loss on sale of held for trading investments - netUnrealised (gain) / loss on held for trading investments - netReturn on Government SecuritiesOperating profit before working capital changes

(Increase) / Decrease in current assetsDeposit, prepayments and receivables

(Decrease) / Increase in current liabilitiesPayable to the Management CompanyPayable to the TrusteeAnnual fee payable to the Securities and Exchange Commission of PakistanAccrued expenses and other liabilities

Sale of held for trading investmentsPurchase of held for trading investments

Net cash (used in) / generated from operating activities

Cash flows from financing activitiesAmount received from issuance of unitsAmount paid on redemption of unitsNet cash (used in) financing activitiesNet (decrease) / increase in cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Cash and cash equivalents at the end of the period


CONDENSED INTERIM CASH FLOW STATEMENT (UNAUDITED)FOR THE QUARTER ENDED 30 SEPTEMBER 2017

Quarter ended

30 September2017

30 September2016

8,688,887

(9,581) (3,005)

(4,581,905) 4,094,396

(390,687)

(23,196) (9,199)

(275,276) (5,040,699) (5,348,370)

409,892,251 (552,384,000) (142,491,749)

(144,136,410)

69,762,319 (260,425,437) (190,663,118) (334,799,528)

523,373,701

188,574,173

7,898,428

23,714 -

(550,714) 7,371,428

(2,748,595)

(68,746) (19,260)

(417,108) 593,024,826 592,519,712

559,192,000 (558,665,000)

527,000

597,669,545

202,259,162 (472,441,000) (270,181,838) 327,487,707

798,602,631

1,126,090,338

09

JS Cash Fund

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



Net receipts from unitholders at the beginning of the period

Amount received on issuance of 682,580 (2016: 1,961,744 ) units

Amount paid on redemption of 2,551,061 (2016: 4,587,537 ) units

Item resulting in increase/ (decrease) in net assets:Any refund on units as element of income

Undistributed Brought Forward Relating to realised gain Relating to unrealised (loss)

Accounting Income available for distribution: Relating to Capital Gain / (loss) Excluding Capital Gain

Undistributed Carried Forward Relating to realised gain Relating to unrealised gain

Net assets as at end of the period Rupees

Net assets value per unit as at the beginning of the period Rupees

Net assets value per unit as at the end of the period Rupees


CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNITHOLDERS' FUND (UNAUDITED)FOR THE QUARTER ENDED 30 SEPTEMBER 2017

660,225,776

69,762,319

(260,425,437)

1,058,013

161,166,474 (8,854)

161,157,620

12,586 7,618,288 7,630,874

168,785,489 3,005

168,788,494

639,409,165

101.64

102.91

630,093,867

202,259,162

(472,441,000)

2,080,812

152,328,584 -

152,328,584

(23,714) 5,841,330 5,817,616

158,146,200 -

158,146,200

520,139,041

102.53

103.91

JS Cash Fund

10



Quarter ended

30 September2017

30 September2016

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

NOTES TO THE CONDENSED INTERIM FINANCIALINFORMATION (UNAUDITED)FOR THE QUARTER ENDED 30 SEPTEMBER 2017

1. LEGAL STATUS AND NATURE OF BUSINESS

1.1 JS Cash Fund ("the Fund") was established under the Non-Banking Finance Companies (Establishment andRegulation) Rules, 2003 (NBFC Rules) as an open-end unit trust scheme. The Fund is governed under Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 and Non-Banking Finance Companiesand Notified Entities Regulations, 2008. The Fund was constituted under a Trust Deed, dated 16 October 2009between JS Investments Limited as the Management Company, a company incorporated under the CompaniesOrdinance, 1984 (Now Companies Act, 2017) and the MCB Financial Services Limited (MCBFSL) as the Trustee.The registered office of the Management Company is situated at 7th Floor, The Forum, Clifton, Karachi, Pakistan.

The Fund is an open end mutual fund categorised as "Money Market Scheme" and it is listed on the PakistanStock Exchange Limited. Units are offered for public subscription on continuous basis and are transferrable andcan be redeemed by surrendering them to the Fund. As per the offering document, the Fund shall invest inlow and highly liquid short term assets including money market instruments.

The Management Company of the Fund has obtained license to act as an Asset Management Company underthe Rules from SECP. The registered office of JS Investments Limited is situated at 7th Floor, The Forum, G-20Khayaban-e-Jami, Block-9, Clifton, Karachi.

Title to the assets of the Fund is held in the name of MCB Financial Services Limited as a Trustee of the Fund.

The Fund is categorised as an "Money Market Scheme" as per the circular 07 of 2009 issued by Securities andExchange Commission of Pakistan.

2. BASIS OF PREPARATION

2.1 This condensed interim financial information has been prepared in accordance with the requirements of theInternational Accounting Standard 34 - Interim Financial Reporting, provisions of and directives issued underthe Companies Ordinance, 1984, Non Banking Finance Companies (Establishment and Regulation) Rules,2003 (the Rules), Non-Banking Finance Companies and Notified Entities Regulations, 2008 (the Regulations)and directives issued by the Securities and Exchange Commission of Pakistan (SECP). Incase the requirementsdiffer, the requirements of the Rules, the Regulations and the directives issued by the SECP shall prevail.

2.2 The condensed interim financial statements does not include all the information and disclosures required inthe annual financial statements and should therefore be read in conjunction with the financial statements ofthe Fund for the year ended June 30, 2017.

3. ACCOUNTING POLICEIES AND ESTIMATES

The accounting policies, basis of accounting estimates applied and method of computation adopted in thepreparation of these condensed interim financial statements and financial risk management objectives andpolicies are the same as those applied in the preparation of the annual financial statements of the Fund forthe year ended June 30, 2017 except as explained in note 3.1.

3.1 Pursuant to SECP SRO 756(I)/2017 dated 03 August 2017, Income Statement and Statement of Movementsin Reserves or Unit holders’ Fund for the period ended 30, September 2017 has been prepared in accordancewith the change in the definition of accounting income which excludes the effect of element of income /lossrelating to the redemption of units. Moreover Statement of Movement in Reserves or Unit holders’ Fundincorporates additional information relating to distribution in lieu of ‘Distribution Statements’ now being deletedfrom Schedule V.

11

JS Cash Fund

4 FINANCIAL RISK MANAGEMENT

The Fund's financial risk management objectives and policies are consistent with that disclosed in the financialstatements as at and for the year ended 30 June 2017.

5 TOTAL EXPENSE RATIO

In the current period, Securities and Exchange Commission of Pakistan (SECP) vide directiveno.SCD/PRDD/Direction/18/2016 dated 20 July 2016, required that Collective Investment Scheme (CIS) shalldisclose Total Expense Ratio (TER) in the periodic financial statements of CIS / the Fund. TER ofthe Fund forthe quarter ended 30 September 2017 is 0.28% (YTD) which includes 0.07% representing government levy,Workers Welfare Fund and SECP fee.

6.1 This includes balance of Rs. 0.66 million (30 June 2017: Rs. 4.02 million) with JS Bank Limited (related party)that carries profit at 6.25% (30 June 2017: 6.25%) per annum. Other PLS accounts of the Fund carry profitrates ranging from 3.00% to 6.25% (30 June 2017: 3.00% to 6.50%) per annum.

6. BANK BALANCES

Profit and loss sharing (PLS) accounts 6.1 188,574,173 523,373,701188,574,173 523,373,701

Note

30 September2017

(Un-audited)

30 June2017

(Audited)

7 INVESTMENTS

Government Securities - Held for Trading

Governments securities at fair value throughincome statement - held for trading

Total Investments

456,237,100

456,237,100

309,150,860

309,150,860

3 - Month Treasury Bills

Held for trading investments as at 30 September 2017

Cost of held for trading investments as at 30 September 2017

Number of certificates

Holding at the beginning

of the period

Acquiredduring

the period

Matured /Disposed

During theperiod

As of 30September

2017

Fair Valueas on 30

September 2017

%of Netassets

- 5,600 1.000 4,600 456,237,100

456,237,100

456,234,095

71.35

71.35

7.1 Governments securities at fair value through income statement (held-for-trading)(Face value of Rs. 100,000/- each)

8 PREPAYMENTS AND OTHER RECEIVABLES

Accrued return on bank balances and term deposit receiptPrepaid Listing Fee - PsxOthersPrepaid Secp supervisory fee on listing fee

30 September2017

(Un-audited)

30 June2017

(Audited)

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

1,351,998 18,750

2,901 1,875

1,375,524

981,936 -

2,901 -

984,837

JS Cash Fund

12

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

7.1

12.1 Details of transactions with related parties / connected persons during the period

JS Investments Limited

Remuneration to the Management Company 877,231 740,947Sindh sales tax on remuneration of the Management Company 114,040 96,323Redemption of units: 97,220 (2016: 173,496) 10,000,000 18,000,000Sales load - 29,365Expense incurred 175,448 148,188

MCB Financial Services Limited - Trustee

Remuneration of the Trustee 245,624 207,464Sindh sales tax on Trustee remuneration * 31,932 26,970

East West Insurance Company Limited

Redemption of units: Nil (2016: 4,822) - 499,000

JS Bank Limited

Interest income on bank balances 21,580 25,676Bank charges 1,880 3,185

Key management personnel of the Management Company

Issue of units: 97,794 (2016: 14,616) 10,000,000 1,500,000Redemption of units: Nil (2016: 49,120) - 5,076,602

9. PROVISION FOR FEDERAL EXCISE DUTY ONREMUNERATION OF THE MANAGEMENT COMPANY

There has been no change in the status of the appeal filed by tax authorities in the Supreme Courtof Pakistan since 30, June 2017. Consequently, there is no change in the provision for Federal Excise Duty(FED).

10 ACCRUED EXPENSES AND OTHER LIABILITIES

Accrued CGT deducted on redemptionsAuditors' remuneration Other liabilitiesProvision for contribution to Sindh Worker's Welfare Fund (SWWF) 10.1Other liabilities

10.1 There has been no change in the status of the petition filed with Sindh High Court since 30, June 2017.Consequently, The provision for Sindh Workers Welfare Fund is being made on daily basis.

11 CONTINGENCIES AND COMMITMENTS

The fund has no contingencies or commitment at the period end.

12 TRANSACTIONS WITH RELATED PARTIES / CONNECTED PERSONS

Connected persons / related parties include JS Investment Limited (JSIL) being the Management Company, MCBFinancial Services Limited being the trustee, Jahangir Siddiqui and Co. Limited being the holding company ofJS Bank Limited (JSBL - which is the holding Company of the Management Company), JS Global Capital Limited(which is a fellow subsidiary of JSBL) and other associated companies of the Management Company and itssubsidiary, Key Management Personnel and other funds being managed by the Management Company andincludes entities holding 10% or more in the units of the Fund. It also includes staff retirement funds of the aboverelated parties / connected persons..

17,272 217,463 128,866

1,303,809 208,738

1,876,148

303,764 147,650

64,782 1,126,485 4,624,792 6,267,473

30 September2017

30 September2016

(Un-audited)-------Rupees-------

Quarter ended

13

JS Cash Fund

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

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

13 Fair value of financial instruments

The fair value of financial assets and liabilities are included at the amount at which the instrument could beexchanged in a current transaction between willing parties. The following methods are used to estimate the fairvalues of instruments:

Listed shares

These are valued on the basis of closing market prices quoted on the respective stock exchange.

Debt securities

These are valued at the rates notified by the Mutual Funds Association of Pakistan (MUFAP) in accordance withthe SECP's Circular 1 of 2009. The said circular prescribes a valuation methodology which in case of currentlytraded securities, is based on weighted average prices during the 15 days preceding the valuation date and incase of thinly or non-traded securities, on the basis of discount coupon method which takes into considerationcredit risk and maturities of the instruments.

Government securities

These are valued by reference to the quotations obtained from the PKRV rate sheet on the Reuters page.

The fair value of other assets and liabilities of the Fund approximate their carrying amount largely due to shortterm maturities of these instruments.

12.2 Details of balances with related parties / connected person as at period / year end

JS Investments Limited

Remuneration payable to the Management Company 264,383 284,852Sindh sales tax payable on remuneration of the Management Company * 618,586 621,313Federal excise duty payable on remuneration of the Management Company * 3,803,127 3,803,127Expenses payable 52,877 56,970Sales load payable - 3,701Units outstanding: 1,209,282 (30 June 2017: 1,306,502) 124,447,247 132,792,851

MCB Financial Services Limited

Remuneration payable to the Trustee 74,027 82,171Sindh sales tax payable on Trustee remuneration * 9,620 10,675

JS Bank Limited

Bank balances 657,183 4,020,621Accrued return on bank balance 2,885 -

Entities holding 10% or more of units

Units outstanding: 1,513,557 (30 June 2017: 831,596) 155,760,189 84,523,460

Key Management PersonnelUnits outstanding: 254,908 (30 June 2017: 157,115) 26,232,620 15,969,141

30 September2017

(Un-audited)

30 June2017

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

JS Cash Fund

14

14 GENERAL

14.1 Figures have been rounded off to the nearest Rupee and have been reclassified where ever necessary.

14.2 Corresponding figures have been rearranged, whereever necessary.

14.3 "In compliance with schedule V of the Non-Banking Finance Companies and Notified Entities Regulations, 2008,the directors of the Management Company hereby declare that this condensed interim financial informationgives a true and fair view of the state of the Fund’s affairs as at September 30, 2017.

15 DATE OF AUTHORISATION FOR ISSUE

These condensed interim financial statements were authorised for issue by Board of Directors of the ManagementCompany of the Fund on October 25, 2017.

- 309,150,860 - 309,150,860

Investments - Government Securities - 456,237,100 -ASSETS

ASSETSInvestments - Government Securities - 309,150,860 - 309,150,860

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

----------------------As at September 30, 2017 ----------------------Level 1 Level 2 Level 3 Total

- 456,237,100 - 456,237,100

Level 1 Level 2 Level 3 Total --------------------------As at June 30, 2017 --------------------------

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

13.1 Fair value hierarchy

The Fund uses the following hierarchy for determining and disclosing the fair value of financial instruments byvaluation technique:

Level 1: quoted prices in active markets for identical assets.

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are notbased on observable market data.

As at September 30, 2017, the Fund held the following financial instruments measured at fair value:

456,237,100

15

JS Cash Fund



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