Accounts forthe Quarter Ended September 30, 2008

FAYSAL BALANCED GROWTH FUND The Faysal Balanced Growth Fund (FBGF) is an open-ended mutual fund. The units of FBGF are listed on the Karachi Stock Exchange and were initially offered to the public on April 19, 2004. FBGFseeks to provide long-term capital appreciation with a conservative risk profile and a medium to long-term investment horizon. FBGF's investment philosophy is to provide stable returns by investing in a portfolio balanced between equities and fixed income instruments. Fund Information

Management Company Faysal Asset Management Limited

Board of Directors of the Management Company Mr. Khalid Siddiq Tirmizey, Chairman Mr. Salman Haider Sheikh, Chief Executive Officer Mr. Sanaullah Qureshi, Director Mr. Syed Majid AIi, Director Mr. Feroz Rizvi, Director

CFO of the Management Company Mr. Abdul Razzak Usman

Company Secretary of the Management Company Mr. M. Siddique Memon

Audit Committee Mr. Feroz Rizvi, Chairman Mr. Sanaullah Qureshi, Member Mr. Syed Majid Ali, Member

Trustee Central Depository Company of Pakistan Limited Suit #. M-13, 16, Mezzanine Floor, Progressive Plaza, Beaumont Road, Near PIDC House, Karachi.

Bankers to the Fund Faysal Bank Limited MCB Bank Limited Bank Alfalah Limited Atlas Bank Limited The Bank of Punjab

Auditors Ford Rhodes Sidat Hyder & Co., Chartered Accountants

Legal Advisor Mohsin Tayebely & Co., 2nd Floor, Dime Centre, BC-4, Block-9, KDA-5, Clifton, Karachi.

Registrars Gangjees Registrar Services (Pvt) Limited Room # 506, 5th Floor, Clifton Centre, Kehkashan Clifton - Karachi.

Distributors Access Financial Services (Pvt.) Ltd. AKD Securities (Pvt.) Limited Faysal Asset Management Limited Faysal Bank Limited PICIC Commercial Bank Limited Reliance Financial Products (Pvt.) Limited Invest Capital & Securities (Pvt.) Limited Flow(Private) Limited IGI Investment Bank Limited Pak Oman Investment Bank Limited Alfalah Securities (Pvt) Limited JS Global Capital Limited t"''' e ,

FAYSAL BALANCED ~ . Mission Statement GROWTH FUND ------

FBGF endeavours to provide ~ investors with an opportunity to earn income and long-term capital appreciation by investing in a large pool of funds representing equity / non equity I investment in a broad range of sectors and financial instruments. REPORT OF THE FAYSAL DIRECTORS OF THE BALANCED \. MANAGEMENT COMPANY GROWTH FUNC ------

The Board of Directors of the Faysal Asset Management Limited, the management company of thE Faysal Balanced Growth Fund (FBGF), is pleased to present the un-audited accounts of FBGF for thE quarter ended September 30, 2008.

Quarter ended Quarter ended September September 2008 2007

Total (Loss) / Income (166.51) 14.05 Operating Expenses 6.85 8.56 (Loss) / Profit Before Tax (173.36) 5.49 Taxation (Loss) / Profit After Tax

Loss for the quarter amounted to Rs. 173.36 million. Loss after tax for the quarter includes net realizec capital loss of Rs. 63.13 million and unrealized loss of Rs. 138.21 million. The Fund has earned dividend income of Rs. 4.04 million and in view of its exposure in listed rated Term Finance Certificates, the Fund earned 5.25 million during the quarter. The long-term gains of the fund were turned into medium-term loss due to the current economic situation in the country resulting in negative equity market performance.

Fund Performance: FBGF posted a decline of -19.98% for the quarter where as KSE-1 00 index declined by -25.28%. FBGF had an average asset allocation of 56.21 % equity and 43.79% fixed income exposure during the quarter ending September 30, 2008.

Average open-ended balanced equity funds posted a return of -13.38% during the nine month period. FBGF stood as the third best performing balanced equity fund in a spectrum of six funds.

30-Sept 2008 Change

KSE-100 Index 12,289.03 9,182.80 -25.28% FBGF NAV (ex-bonus) 100.00 80.02 -19.98%

Market Review: The equity markets continued a downward trend during the quarter finally resulting in a self-imposed floor by the KSE-management. This self-imposed floor provided short-term relief to the investors at the level of 9,144 points. This action led to record low volumes at the KSE. This action further led to a liquidity crisis in the financial markets. The KSE-1 00 index started the year at 12,289.03 and ended the quarter at 9,182.80 marking a loss of 19.98%. The FDI and FPI indicated declining trends as compared to the similar quarter of the previous fiscal year. Special Rupee Convertible Account, SCRA did not show any significant signs of recovery after the recent foreign funds outflow from our equity markets. The economy witnessed large outflows from its foreign reserves and a rating downgrade by S&P. The global turmoil has impacted this local turmoil along with the law & order situation in the country.

On the international front all mature and emerging markets including the U.S., European and Asian markets remained in focus due to the trickle-down impact of the sub-prime credit crisis of the U.S. economy. Dow Jones Industrial Index declined to a 5 year low level below 8,500. The European markets witnessed unprecedented defaults by large banks impacting nationalization of commercial banks by Iceland. Quarterly Report Sept. '08 - Page I03 ------REPORT OF THE FAYSAL DIRECTORS OF THE BALANCED' MANAGEMENT COMPANY GROWTH FUND

The U.S. federal reserve and government announced a $700 billion bailout package for the financial industry which fueled further speculation regarding the scope of the problem. Estimates put the sub- prime direct loss around $3.5 trillion. Some of the major investment banks and commercial banks saw their businesses collapsing in this turmoil. The bail-out package announced by the U.S. was followed by a concerted effort in the form of interest rate cut by the central banks around the world. This global economic crisis has deeply impacted international investor's confidence resulting in lower allocations towards emerging markets including Pakistan.

Pakistani financial system had no direct exposure in the U.S. sub-prime market. The indirect impact was felt by the local financial market which coupled with poor law and order situation in the country led to high inflationary pressure and weakening foreign reserves. This led to a flight of capital towards safety resulting in a weaker rupee against foreign currencies. Pakistan has initiated work on various options including assistance from international donor agencies and other liquidity pools including China and Middle-eastern states to spur growth in this global economic slow-down. We feel confident that the financial system in the country is strong and the GDP growth can be sustained if the law & order situation is managed at the earliest. This will restore international investment managers' confidence resulting in a stable asset allocation.

Oil & Gas Power Gen. & Dist., Exploration,13.46% 2.47%

The Board of Directors of the Management Company thanks the unit holders for their confidence in the Management, the Securities and Exchange Commission of Pakistan for its valuable support, assistance and guidance. The Board also thanks the employees of the Management Company and the Trustee for their dedication and hard work.

Salman Haider Sheikh Chief Executive Officer INTERIM CONDENSED FAYSAL STATEMENT OF ASSETS BALANCED \ AND LIABILITIES GROWTH FUND

SEPTEMBER 30, June 30, 2008 2008 Note Rupees Rupees (Un-Audited) (Audited)

Bank balances 138,769,728 161,776,785 Dividend & other receivables 16,125,547 14,059,257 Investments 541,886,022 847,893,468

Payable to the Management Company 1,475,337 2,275,883 Remuneration payable to the Trustee 118,030 164,396 Accrued and other liabilities 916,803 1,716,617

2,510,210 4,156,896

694,271,087 1,019,572,614

For Faysal Asset Management Limited (Management Company)

Salman Haider Sheikh F~; Syed Majid Ali Chief Executive Officer Director INTERIM CONDENSED FAYSAL BALANCED' INCOME STATEMENT GROWTH FUND

Note September 30 September 30 2008 2007 Rupees Rupees

Income Net capital (loss) / gain on sale of investments at fair value through profit or loss (63,129,766) 11,314,316 Profit earned on debt securities 5,255,270 10,579,258 Dividend income 4,035,318 3,358,508 Return on bank balances 6,520,462 3,994,149 Unrealised loss on investments at fair value through profit or loss 7.3 (138,210,170) (19,859,025)

(185,528,886) 9,387,206 Element of income and capital gains included in prices of units sold less those in units redeemed 19,016,256 4,664,352

Total (loss) / Income (166,512,630) 14,051,558

Expenses

Remuneration of the Management Company 8 5,086,846 6,136,451 Remuneration of the Trustee 9 406,861 524,786 Brokerage charges 910,785 1,258,603 Bank charges 6,267 10,483 Auditors' remuneration 92,179 75,617 SECP annual fee 203,474 272,731 Legal and professional charges 30,000 Fees and subsricptions 35,000 35,000 Settlement charges and capital value tax 108,675 213,671

Total Expenses 6,850,087 8,557,342

Net loss for the quarter before taxation (173,362,717) 5,494,216

Taxation 11

Net (loss) / income for the quarter after taxation (173,362,717) 5,494,216

(Loss) / Earnings per unit at the close of the quarter 12 (19.98) 0.51

For Faysal Asset Management Limited (Management Company)

Salman Haider Sheikh Syed Majid Ali Chief Executive Officer Fi; Director FAYSAL INTERIM CONDENSED BALANCED \. DISTRIBUTION STATEMENT GROWTH FUNC

SEPTEMBER 30 SEPTEMBER 30 2008 2007 Rupees Rupees

Final bonus distribution for the year ended June 30,2008 @ RS.1.8 per unit (2007: @ RS.6 per unit) declared for distribution on July 5,2008 (2007: July 7,2007)

Final dividend for the year ended June 30,2008 @ RS.1.8 per unit (2007: Nil) declared for distribution on July 5, 2008 (2007: July 7, 2007)

(173,362,717) 5,494,216

(173,401,583) 36,403,080

For Faysal Asset Management Limited (Management Company)

Salman Haider Sheikh F~; Syed Majid Ali Chief Executive Officer Director INTERIM CONDENSED FAYSAL CASH FLOW BALANCED ~ STATEMENT GROWTH FUND ------~------~

September 30 September 30 2008 2008 Note Rupees Rupees

Cash Flow from Operating Activities Net (loss) 1 income for the quarter before taxation (173,362,717) 5,494,216 Adjustments for non-cash and other items Net capital (gain) 1 loss on sale of investments at fair value through profit or loss 63,129,766 (11,314,316) Profit earned on debt securities (5,255,270) (10,577,853) Return on Bank balances (6,520,462) (3,994,149) Dividend income (4,035,318) (3,358,508) Unrealised loss on investments at fair value through profit or loss - Held for trading 138,210,170 19,859,025 Element of income and capital gains included in prices of units sold less those in units redeemed (19,016,256) (4,664,352) (6,850,087) (8,555,937) Decrease in Assets Receivables 11,500 60,301,790 Decrease in Liabilities Payable to the Management Company Remuneration payable to the Trustee Accrued and other liabilities

Proceeds from sale 1 redemptions of investments Payment against purchase of investments Profit received on debt securities Return received on Bank balances Dividend received

Net cash inflow 1 (outflow) from operating activities (117,100,062) Cash Flow from Financing Activities Amounts received on issue of Units 22,880,291 101,124,799 Payments made against redernption of Units (150,985,590) (63,799,439) Dividend paid (4,817,255)

Net cash (outflow) 1 inflow from operating activities (132,922,554) 37,325,360 Net (decrease) 1 increase in cash and cash equivalents during the quarter (23,007,057) (79,774,702) Cash & cash equivalents at the beginning of the quarter 161,776,785 105,769,453 Cash & cash equivalents at the end of the quarter 5 138,769,728 25,994,751

The annexed notes from 1 to 15 form an integral part of these financial statements. For Faysal Asset Management Limited (Management Company)

Salman Haider Sheikh F~; Syed Majid Ali Chief Executive Officer Director Quarterly Report Sept. '08 - Page I08 FAYSAL BALANCED' GROWTH FUND

SEPTEMBER 30 SEPTEMBER 30 2008 2007 Rupees Rupees

Net assets at the beginning of the quarter 1,019,572,614 1,076,414,555

Amount received on issue of units * 22,880,291 100,134,226

Amount paid on redemption of units ** (150,985,590) (62,808,866)

(128,105,299) 37,325,360 Element of income and capital gains included in prices of units sold less those in units redeemed Final dividend @ Rs 1.8 per unit

(Declared for distribution on July 5, 2008) (4,817,255)

Net income for the quarter after taxation (173,362,717) 5,494,216

Net assets at the end of the quarter 694,271,087 1,114,569,779

* Number of units issued (including 132,112 bonus units issued during the quarter ended September 30, 2008 ana 1,541 ,056 bonus units issued during the quarter ended September 30, 2007)

For Faysal Asset Management Limited (Management Company)

Salman Haider Sheikh F~; Syed Majid Ali Chief Executive Officer Director NOTES TO THE FAYSAL INTERIM CONDENSED BALANCED ~ FINANCIAL STATEMENTS GROWTH FUND

Faysal Balanced Growth Fund (the Fund) has been established under the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (the NBFC Rules) and has been authorised as a unit trust scheme by the Securities and Exchange Commission of Pakistan (SECP) on February 18, 2004. It has been constituted under a Trust Deed, dated January 29,2004, between Faysal Asset Management Limited (the Management Company), a Company incorporated under the Companies Ordinance, 1984 and Muslim Commercial Financial Services (Private) Limited (MCFSL) as the Trustee till June 04, 2005 and thereafter between Faysal Asset Management Limited as Management Company and Central Depository Company of Pakistan Limited (CDC) as the Trustee, also incorporated under the Companies Ordinance, 1984. The Fund is an open ended balanced mutual fund and offers units for public subscription on a continuous basis. The units are transferable and can also be redeemed by surrendering to the Fund. The units are listed on the Karachi Stock Exchange (Guarantee) Limited. The Fund was launched on April 19, 2004. The principal activity of the Fund is to make investments in equity market and fixed income securities including money market instruments.

These financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan. Approved accounting standards comprise of International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) as are notified under the Companies Ordinance, 1984, the requirements of the Trust Deed, the Non Banking Finance Companies (Establishment and Regulation) Rules, 2003 (the NBFC Rules), the Non Banking Finance Companies and Notified Entities Regulation, 2007 (the NBFC Regulations) and 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 IFRS, the requirements of the Trust Deed, the NBFC Rules, the NBFC Regulations or the requirements of the said directives prevail. The disclosures made in these financial statements have, however, been limited based on the requirements of the International Accounting Standard-34: "Interim Financial Reporting". They do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the financial statements of the Fund for the year ended June 30, 2008. 3. BASIS OF MEASUREMENT 3.1 These financial statements have been prepared under the historical cost convention, except for investments classified as 'financial assets at fair value through profit or loss - held for trading' and 'available for sale investments' which are carried at fair value. 3.2 The financial statements are presented in Pak Rupees, which is the Fund's functional and presentational currency.

4. SIGNIFICANT ACCOUNTING POLICIES The accounting policies adopted in preparation of these financial statements are the same as those applied in the preparation of the annual published financial statements of the Fund for the year ended June 30, 2008. NOTES TO THE FAYSAL INTERIM CONDENSED BALANCED FINANCIAL STATEMENTS GROWTHFI

(Un-Audited) (Audited) SEPTEMBER 30, JUNE 30, 2008 2008 Rupees Rupees

5.1 These carry mark-up ranging from 3% to 15% (June 30, 2008: 0.0085% to 13.5% ) annum.

Receivable against sale of investments at fair value through profit or loss Dividend income receivable 3,885,408 Mark-up receivable on debt securities 5,384,646 Security deposit 3,607,500 Return receivable on Bank balances 1,511,583 Income tax refundable 1,736,410 16,125,547

6.1 This mainly represents tax withheld till September 30, 2004 under Section 233 (A) of Income Tax Ordinance, 2001 inserted through Finance Act, 2004. This amount has b' claimed as refundable in the return of income for the year ending June 30, 2005 and eft, are being made to recover the same as soon as possible.

At fair value through profit or loss

Listed equity securities - Held for trading 7.1 423,181,068 Listed debt securities - Held for trading 7.2 118,704,954 541,886,022 FAYSAL BALANCED ~ GROWTH FUND

FOR THE QUARTER ENDED SEPTEMBER 30, 2008 (UN-AUDITED)

7.1 Listed equity securities

Number of shares Investment as % of Market Value Bonus I as at As at Purchased right Disposed off As at September 30, Name of the investee Net Total July 1, during the shares during the September 30, 1008 company Assets Investments 1008 quarter received quarter 1008 (Rupees)

Ordinary shares having a face value of Rs.1 0 each unless stated otherwise Cable & electric goods Pak Electron Limited 405,506 (305,500) 100,006 4,080,145 0.59% 075% Cement DG Khan Cement Company Limited 100,000 100,000 0.57% 0.72% Lucky Cement Limited 50,000 150,000 (100,000) 100,000 0.83% 1.07% Thalta Cement Company Limited 351,000 (341,000) 10,000 002% 0,03% 1.42% 1.82% Chemicals Nimir Industrial Chemicals Limited 2,001.500 (2.001,500) 0.00% 0.00% Commercial banks Allied Bank limited 50,040 (50,000) 40 2,315 0.00% 0.00% Arif Habib Bank Limited 200,000 (200,000) 0,00% 0.00% Askari Bank Limited 199,000 199,000 5,568,010 0.80% 1.03% Bank Alfalah Limited 300,000 350,000 (450,000) 200,000 6,250,000 0.90% 1.15% Bank Islami Pakistan Limited 756,250 139,500 (190,500) 705,250 7,553,218 1.09% 1.39% Habib Bank Limited 75,000 (50,000) 25,000 3,461,250 0.50% 0.64% JS Bank Limited 1,000,000 518,000 (316,500) 1,201.500 11,015,000 1.73% 2.22% KASB Bank Limited 155,500 (155,500) 0.00% 0.00% MCB Bank Limited 41,000 (41,000) 0.00% 0.00% National Bank of Pakistan 175,400 (50,000) 125,400 11,664,708 1.68% 2.15% NIB Bank limited 2,729,558 (209,500) 2,520,058 21,294,490 3.07% 3.93% The Bank of Khyber 5,001,500 65,000 5,066,500 54,414,210 7.84% 10.04% United Bank Limited 25,000 50,000 (75,000) 000% 0.00% 121,223,211 17.61% 22.55% Engineering Sazgar Engineering Works Limited 22,550 (22,500) 50 3,340 0.00% 0.00% Fertilizer ENGRO Chemicals Limited 100,000 125,000 (225,000) 0,00% 0.00% Fauji Fertilizer Company Limited 50,000 50,000 072% 0.92% Fauji Fertilizer Bin Qasim Limited 421,500 421,500 1.38% 1.77% 2.10% 2.69% Insurance companies Adamjee Insurance Company Limited 63,000 (63,000) 0.00% 0.00% EFU General Insurance Limited 50,000 50,000 1.18% 1.51% Pakistan Reinsurance Company Limited 113,888 113,888 0.65% 083% 1.83% 2.34% Investment banks f cas f Securities Arif Habib Securities Limited 67,500 200,000 (142,500) 125,000 1.33% 1.70% Jehangir Siddiquie Company Limited 20,000 3,270 (3,200) 20,070 0.96% 1.23% JS Investments Limited 50,000 (50,000) 0.00% 0.00% Pervez Ahmed Securities Limited 25,000 (25,000) 0.00% 0.00% 15,882,650 2.29% 2.93% Oil & gas exploration companies Oil & Gas Development Company Limited 704,788 586,000 (781,400) 509,388 6.93% 8.88% Pak Ollflelds Limited 50.000 55,000 (50,000) 55,000 1.93% 2.47% Pakistan Petroleum Limited 102.600 215,000 (152,600) 165,000 4,60% 5.90% 13.46% 17.25% Oil & gas marketing companies Attock Petroleum Limited 25,000 (25,000) 0.00% .00% Pakistan Stale Oil 10,000 (10,000) 0.00% 0.00% 0,00% 0.00%

il."arterly Report Sept. '08 - !~ __._____ NOTES TO THE FAYSAL INTERIM CONDENSED BALANCED 1 FINANCIAL STATEMENTS GROWTHFU - -

Market Value Bonus I as at As at Purchased right Disposed off As at I September 30 July 1, during the shares during the September 30, 2008' 2008 quarter received quarter 2008 (Rupees)

Power generation & distribution Hub Power Company Limited 800.000 17,168,000 2.47% 3.1;

Technology & communication Pakistan Telecommunication Company Limited 0.00% 0.0[ Worldcall Telecom Limited Ll 0.00% DOC 0.00% O.lX Textile composite Artistic Denim Mills Limited 107,100 0.52% 0.67 Azgard Nine Limited 450,500 ~M13,753',"O,765I 1.98% 254 Nishat Mills Limited 300,000 14,013,000 I 2.02% 2.59 Usman Textile Mills Limited 108,500 1,095,850 0.16% 020 32,504,015 4.68% 6.00 Textile spinning D. S. Industries Limited 318.000 4,722,300 0.68% 0.87

Tobacco Pakistan Tobacco Company Limited 201.200 22,914,667 3.30% 4.23

Transport Pakistan International Container Terminal Limited 250.000 115.425,000 I 2.22% 2.85 Pakistan National Shipping Corporation 227.500 12,319,1251 1.77% 2.27' 27,744,125 3.99% 5.12' Miscellaneous PACE (Pakistan) limited 0.00% 0.00' Tri-pack Films Limited L~ 0.00% 0.00' 0.00% 0.00' 14,625,450 377,818,168 54.42% 69.72'

Preference shares having a face value of Rs.1 0 each unless stated otherwise

Cable & electric Goods Pak Electron Limited 3,749.000

22,392,480 4.725.100 NOTES TO THE FAYSAL INTERIM CONDENSED BALANCED '- FINANCIAL STATEMENTS GROWTH FUND

7.2 Listed Debt Securities * * Term Finance Certificates (TFCs)

Number of certificates Investment as % of I Market Value ~ 1 as at I As at Purchased Redeemed Disposed off As at September 30, Name of the investee Net Total July 1, during the during the during the September 30, 2008 company Assets Investments 2008 quarter quarter quarter 2008 (Rupees)

Commercial banks United Bank Limited pst Issue) 6,000 6.000 26,209,680 3.78% 4.84%

Investment banks I companies I securities Jahangir Siddiqui & Company limited 7,650 7.650 37,146,048 5.35% 6.85% Trust Investment Bank Limited 4,500 4.500 4,485,600 0.65% 0.83%

Oil & Gas Exploration Companies Naimat Basal Oil & Gas Securitization Co. 15,000 (15.000) 0.00% 0.00% Technology and Communication Telecard Limited 20,010 20.010 50,863,626 7.33% 9.39%

53,160 (15,000) 38,160 118,704,954 17.11% 21.91%

Number of Face value Mark-up rate Secured f Name of security certificates (Rupees) (Per annum) Maturity unsecured Rating

United Bank Limited (1st Issue) 6,000 5,000 8.45% August. 2012 Unsecured AA Trust Investment Bank Limited 4,500' 5,000 3% + 6 month KIBOR July, 2009 Secured AA- Jahangir Siddiqui & Company Limited 7,650 . 5,000 8.29% December. 2009 Secured AA+ Telecard Limited 20,010 5,000 3.75% + 6 month KIBOR May, 2011 Secured BBB

7.3 Net unrealised gain I (loss) during the year in the value of investments classified as 'financial assets at fair value through profit or loss'. SEPTEMBER 30, SEPTEMBER 30, 2008 2007 Rupees Rupees (Un-AUdited) (Un-Audited) Fairvalue of investments classified as 'financial assets at fair value through profit or loss' 541,886,022 1,060,406,471 Less:Cost of investments classified as 'financial assetsat fair value through profit or loss' (738,326,834) (1,078,456,396) (196,440,812) (18,049,925) Netunrealised gain in market value of investments classified as 'financial assets at fair value through profit or loss' at the beginning of the quarter 1,797,523 Unrealised loss - letter of rights (7,126,613) Realisedon disposal during the quarter (61,492,247) (3,519,990) 58,230,642 (1,809,100) (138,210,170) (19,859,025) FAYSAL BALANCED' GROWTH FUN

The Management Company is entitled to a remuneration for services rendered to the Fun under the provisions of the NBFC and Notified Entities Regulations, 2007 during the first fi\ years of a fund's existence, of an amount not exceeding three percent of the average annu net assets of the Fund and thereafter of an amount equal to two per cent of such asset: During the current period, the Management Company has claimed its remuneration at th rate of 2.5 percent (June 30, 2008: 2.5 percent) of the average daily net assets of the Funl

The Trustee is entitled to a monthly remuneration for services rendered to the Fund undl the provisions of the Trust Deed as per the tariff specified therein, based on the daily nl assets value of the Fund.

SEPTEMBER 30, JUNE 30, 2008 2008 Rupees Rupees (Un-Audited) (Audited)

10. ACCRUED AND OTHER LIABILITIES SECP annual fee payable 203,474 1,108,539 Accrued liabilities 648,393 490,208 Settlement charges payable 2,936 36,543 Zakat payable 62,000 81,327 916,803 1,716,617

10.1 This represents annual fee payable to the SECP in accordance with the NBFC and Notifie Entities Regulations, 2007, whereby the Fund is required to pay SECP annually an amour equal to one tenth of 1% of the average net assets of the Fund.

The Fund is exempt from tax under clause 99 of Part 1 of the Second Schedule to th, Income Tax Ordinance, 2001, subject to the condition that not less than 90% of its accountin, income for the year, as reduced by the capital gains whether realised or unrealised, i distributed among its unit holders.

The Fund is also exempt from the provisions of section 113 (minimum tax) under clause 1 of Part IV of the Second Schedule of the Income Tax Ordinance, 2001.

Earnings per unit (EPU) is calculated by dividing the net income after tax for the year by thl number of units outstanding as at the end of the quarter.

EPU based on cumulative weighted average units for the whole quarter has not beer disclosed as in the opinion of the management determination of such for calculating EPL is not practicable. NOTES TO THE FAYSAL INTERIM CONDENSED BALANCED ~ FINANCIAL STATEMENTS GROWTH FUND

SEPTEMBER 30, SEPTEMBER 30, 2008 2007 Rupees Rupees (Un-Audited) (Un-Audited)

13. TRANSACTIONS WITH CONNECTED PERSONS I RELATED PARTIES

Faysal Asset Management Limited Remuneration of Management Company 5,086,846 6,136,451 Sales Load 87,768 1,192,694

Faysal Savings Growth Fund Issue of bonus units - Nil (2007: 6,241) 625,000 Redemption of units - Nil (2007: 506,241) 50,846,810

Faysal Bank Limited Issue of units - Nil (2007: 227,899) 23,585,256 Redemption of units - Nil (2007: 227,899) 23,876,967 Cash dividend 2,358,525 2,358,525 Profit on deposit account 14,244 14,674

Faysal Bank Limited - Staff Provident Fund Issue of bonus units - 2,978 (2007: 24,153)

AKD Securities (Pvt.) Limited Brokerage fee 153,860 Purchase of marketable securities 105,449,455 Sale of marketable securities 23,924,665

AKD Staff Provident Fund Issue of bonus units - 149 (2007: 1,208) 14,888

SEPTEMBER 30, SEPTEMBER 30, 2008 2007 Rupees Rupees (Un-Audited) (Un-Audited) 13.2 Outstanding balances

Faysal Asset Management Limited Remuneration of Management Company 1,475,156 2,072,847 Sales Load 221 203,036

Faysal Bank Limited Units in issue -1,310,292 (June 30, 2008 1,310,292) 104,849,566 126,233,828 Balance in Saving accounts 146,168 744,429

Faysal Bank Limited - Staff Provident Fund Units in issue - 168,396 (June 30, 2008: 165,418) 13,475,048 NOTES TO THE FAYSAL INTERIM CONDENSED BALANCED' FINANCIAL STATEMENTS GROWTH FUN

These financial statements were authorised for issue on October 17, 2008 by the Board Directors of the Management Company.

For Faysal Asset Management Limited (Management Company)

Salman Haider Sheikh F~; Syed Majid Ali Chief Executive Officer Director