CONTENTS FUND INFORMATION Management Company Faysal Asset Management Limited Fund Information 2 Board of Directors of the Management Company Mr

Quarter and Nine months ended March 31, 2007 Quarter and Nine months ended March 31, 2007 CONTENTS FUND INFORMATION Management Company Faysal Asset Management Limited Fund Information 2 Board of Directors of the Management Company Mr. Farook Bengali, Chairman Mr. Salman Haider Sheikh, Chief Executive Officer Mission Statement 3 Mr. Hassan Mohamed Mahmood, Director Mr. Mohammad Iqbal, Director Mr. Shahid Waqar Mahmood, Director Mr. Feroz Rizvi, Director Report of the Directors of the Management Company 4 Mr. Iqbal Alimohamed, Director Mr. Aqeel Karim Dhedhi, Director CFO of the Management Company Statement of Assets and Liabilities 6 Mr. Muhammad Shakeel Musani Company Secretary of the Management Company Mr. M. Siddique Memon Income Statement 7 Audit Committee Mr. Iqbal Alimohamed, Chairman Mr. Mohammad Iqbal, Member Distribution Statement 8 Mr. Shahid Waqar Mahmood, Member Mr. Feroz Rizvi, Member Trustee Statement of Movement in Unit Holders’ Funds 9 Central Depository Company of Pakistan Limited 8th Floor, Karachi Stock Exchange Building, Stock Exchange Road, Karachi-74000 Cash Flow Statement 10 Bankers to the Fund Faysal Bank Limited MCB Bank Limited Bank Alfalah Limited Notes to the Financial Statements 11 Habib Metropolitan Bank Limited Atlas Bank Limited Bank of Punjab Limited Auditor A.F. Ferguson & Co., Chartered Accountants Legal Advisor Mohsin Tayebaly & Co. Barristers & Advocates, Corporate legal Consultants, 2nd Floor, Dime Centre, BC-4, Block-9, KDA-5, Clifton, Karachi. Registrar Gangjees Registrar Services (Pvt) Limited Room # 506, 5th Floor, Clifton Centre, Kehkashan Clifton - Karachi. Distributors Faysal Asset Management Limited Faysal Bank Limited AKD Securities (Private) Limited PICIC Commercial Bank Limited Invest Capital & Securities (Private) Limited Access Financial Services (Private) Limited Flow (Private) Limited IGI Investment Bank Limited Atlas Capital Markets (Private) Limited 2 Quarter and Nine months ended March 31, 2007 Quarter and Nine months ended March 31, 2007 REPORT OF THE DIRECTORS OF THE MANAGEMENT COMPANY

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 and nine months ended March 31, 2007.

PERFORMANCE REVIEW

Quarter Nine months Quarter Nine months MISSION STATEMENT ended ended ended ended March 31, March 31, March 31, March 31, 2007 2007 2006 2006 Rupees in million Total Income 127.512 156.305 330.473 793.509 FBGF endeavors to provide investors with an Operating Expenses 10.113 33.462 16.390 44.436 Profit Before Tax 117.399 122.843 314.083 749.073 Taxation - - - - opportunity to earn income and long-term Profit After Tax 117.399 122.843 314.083 749.073

Earnings per Unit – Rs. 9.94 10.40 17.02 40.60 capital appreciation by investing in a large Fund Financials: Alhamd-O-Lillah, the fund performed well as compared to its peers and its performance benchmark. The annualized yield of the Fund since inception is 18.22% as at March 31, 2007. The Profit After Tax (PAT) for the quarter and nine months ended March 31, 2007 amounted to Rs. 117.40 million and Rs. 122.84 million respectively compared to pool of funds representing equity / non equity previous year’s PAT for the same period of 314.08 million and Rs. 749.07 million respectively. The drop in PAT is mainly due to the current market conditions; KSE-100 index gained 1,767 points and 1,231 points during the nine months and quarter of the current year respectively as against 4,021 points and 1,931 points respectively during the corresponding period last year. PAT for the current quarter includes realized and unrealized capital gain of Rs. 66.41 investments in a broad range of sectors million and 59.50 million, respectively whereas there was a realized capital gain and unrealized capital loss of Rs. 284.11 million and Rs 14.90 million, respectively during same quarter last year. During the current quarter, the Fund also earned an income of Rs. 11.92 million on listed rated Term Finance Certificates and dividend of Rs. 7.47 million on its portfolio holding. and financial instruments. The operating expenses of the fund decreased by over Rs. 6.28 Million during the current quarter compared to same quarter last year.

Market Review: The equity markets showed improvement with KSE-100 index posted gains of 12.26% during the quarter. The quarter began on a bullish note and the equity market rallied after Prime Minister’s announcement to extend capital gains tax holiday till June 2008. The waiver of stamp duty on electronic transfers by KSE also restored investor confidence. The equity markets went through a consolidation phase during the latter part of the quarter. Balances in the Special Convertible Rupee Account (SCRA), indicator of Foreign portfolio investments, showed an increase to a record level of US $615 million level as on March 28, 2007. Foreign research companies published positive reports about the economic stability of Pakistan and its expected corporate earnings growth. These reports were followed by an increasing interest by the foreign fund managers in the Pakistani equity markets. 3 4 Quarter and Nine months ended March 31, 2007 Quarter and Nine months ended March 31, 2007 Regional equity market comparison indicates that Pakistan’s equity market is currently trading at a discount. The comparison of PE multiple, corporate EPS CONDENSED STATEMENT OF ASSETS AND LIABILITIES growth and dividend yield also present Pakistan as an attractive investment option AS AT MARCH 31, 2007 within the region which can result in higher foreign investment in our equity market in the upcoming months. Note Un-audited Audited Fund Performance: FBGF posted a return of 10.15% for the quarter as compared March 31, June 30, to KSE-100 index return of 12.26%. The average equity exposure of FBGF during 2007 2006 the quarter was around 58%. Average open-ended equity funds posted return of ------Rupees------7.30% for the quarter. FBGF has outperformed the average open-ended equity Assets funds for the quarter by 2.85%. The major sectors of FBGF investments were Oil & Gas, fertilizer and the financial sector. Cash and cash equivalents 144,514,785 27,676,508 Dividends and other receivables 4 98,515,587 28,647,063 31-December 2006 31-March 2007 Change Investments 5 1,138,902,719 1,591,506,641 KSE-100 Index 10,040.50 11,271.59 12.26% Total assets 1,381,933,090 1,647,830,212 FBGF NAV 100.64 110.73 10.02% Liabilities INVESTMENTS Remuneration payable to the Management Company 2,509,558 3,004,781 As of 31 March 2007, the total assets of the Fund were invested as below: Remuneration payable to the Trustee 196,467 215,737 Creditors, accrued and other liabilities 6 71,051,750 23,136,094 ASSET ALLOCATION (%) SECTOR ALLOCATION (%) Total liabilities 73,757,775 26,356,612 Fixed Income Technology & Cable & Communication Electrical Goods 31.43% 3.44% Others 3.82% Cement Net assets 1,308,175,315 1,621,473,600 Textile 2.01% 2.35% Composite Chemicals 3.58% 2.67% Unit holders' funds 1,308,175,315 1,621,473,600

Oil & Gas Commercial Marketing Banks Number of units in issue 11,813,768 15,259,604 8.43% 11.52% Cash Other Assets Equities Fertilizer 11.04% 1.91% 55.62% 9.80% Net asset value per unit 110.73 106.26 Oil & Gas Exploration ACKNOWLEDGEMENT 8.00% The annexed notes 1 to 12 form an integral part of these financial statements. 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 For Faysal Asset Management Limited the employees of the Management Company and the Trustee for their dedication (Management Company) and hard work. For and on behalf of the Board

Salman Haider Sheikh Salman Haider Sheikh Iqbal Alimohamed Mohammad Iqbal Karachi: April 14, 2007 Chief Executive Officer Chief Executive Officer Director Director 5 6 Quarter and Nine months ended March 31, 2007 Quarter and Nine months ended March 31, 2007 CONDENSED INCOME STATEMENT (UN-AUDITED) CONDENSED DISTRIBUTION STATEMENT (UN-AUDITED) FOR THE QUARTER AND NINE MONTHS ENDED MARCH 31, 2007 FOR THE QUARTER AND NINE MONTHS ENDED MARCH 31, 2007

Note Nine months ended March 31, Quarter ended March 31, 2007 2006 2007 2006 ------Rupees ------Nine months ended Quarter ended Income March 31, March 31, 2007 2006 2007 2006 Net gain / (loss) on sale of 'financial assets at fair value through profit ------Rupees ------or loss' 137,510,000 537,503,827 66,412,515 284,114,898 Profit earned on Term Finance Certificates 36,969,429 46,815,749 11,922,177 12,930,361 Dividend income 38,027,168 27,440,520 7,467,500 9,510,960 Undistributed income brought forward Return on bank balances 13,104,663 17,471,134 5,345,210 12,826,212 at the beginning of period 95,513,167 6,288,573 9,399,280 441,278,926 Element of income and capital gains included in prices of units sold less those in units redeemed (27,479,684) 14,089,449 (23,135,743) 25,985,669 Net income / (loss) for the period 122,842,949 749,073,255 117,399,213 314,082,902 Other Income - 200,000 - - 198,131,576 643,520,680 68,011,659 345,368,101 Distribution @ 6% (2006: 20%) Declared for distribution on July 15, Unrealized gain / (loss) on 'financial 2006. (2006 : July 12, 2005) and assets at fair value through profit distributed on July 15, 2006 (2006 : or loss' 5.4 (41,826,711) 149,988,224 59,500,489 (14,895,600) July 12, 2005) (91,557,623) (316,672,053) - (316,672,053 156,304,865 793,508,904 127,512,148 330,472,501 Undistributed income carried forward 126,798,493 438,689,775 126,798,493 438,689,775 Expenses Remuneration of the Management Company 26,045,794 33,903,983 7,655,407 12,260,108 Remuneration of the Trustee 1,908,277 2,257,516 586,815 791,469 The annexed notes 1 to 12 form an integral part of these financial statements. Brokerage, capital value tax and settlement charges 3,944,278 5,724,651 1,339,747 2,586,939 Bank charges 3,228 8,093 753 1,125 Auditors' remuneration 228,747 240,584 73,973 81,773 SECP Annual fee 1,157,592 1,506,848 340,240 544,898 Legal and professional charges 39,000 126,500 16,000 - Fees and subscription 135,000 293,503 100,000 - Amortization of preliminary expenses and floatation costs - 373,972 - 123,288 33,461,916 44,435,649 10,112,935 16,389,599 Net income for the period 122,842,949 749,073,255 117,399,213 314,082,902

------Rupees ------Earnings per unit at the close of the period 8 10.40 40.60 9.94 17.02 For Faysal Asset Management Limited The annexed notes 1 to 12 form an integral part of these financial statements. (Management Company) For Faysal Asset Management Limited (Management Company)

Salman Haider Sheikh Iqbal Alimohamed Mohammad Iqbal Salman Haider Sheikh Iqbal Alimohamed Mohammad Iqbal Chief Executive Officer Director Director Chief Executive Officer Director Director 7 8 Quarter and Nine months ended March 31, 2007 Quarter and Nine months ended March 31, 2007 CONDENSED STATEMENT OF MOVEMENT IN UNIT CONDENSED CASH FLOW STATEMENT (UN-AUDITED) HOLDERS' FUNDS (UN-AUDITED) FOR THE QUARTER AND NINE MONTHS ENDED MARCH 31, 2007 FOR THE QUARTER AND NINE MONTHS ENDED MARCH 31, 2007 Nine months ended March 31, Quarter ended March 31, 2007 2006 2007 2006 ------Rupees ------Nine months ended Quarter ended March 31, March 31, CASH FLOWS FROM OPERATING ACTIVITIES 2007 2006 2007 2006 Net income / (loss) from operations 122,842,949 749,073,255 117,399,213 314,082,902 ------Rupees ------Adjustments for non-cash and other items: Net gain on sale of 'financial assets at fair Net assets at the beginning value through profit or loss' (137,510,000) (537,503,827) (66,412,515) (284,114,898) of the period 1,621,473,600 1,761,354,643 1,475,939,007 2,101,090,923 Dividend income (38,027,168) (27,440,520) (7,467,500) (9,510,960) Profit earned on Term Finance Certificates (36,969,429) (46,815,749) (11,922,177) (12,930,361) Return on bank balances (13,104,663) (17,471,134) (5,345,210) (12,826,212) Amounts received on issue Element of income and capital gains included in of units * 247,957,822 206,985,641 117,726,574 139,574,583 price of units sold less those in units redeemed 27,479,684 (14,089,449) 23,135,743 (25,985,669) Unrealized (gain) / loss on "financial assets at fair value through profit or loss" 41,826,711 (149,988,224) (59,500,489) 14,895,600 Amounts paid on redemption Amortization of preliminary expenses of units ** (711,578,740) (419,669,682) (426,025,222) (245,108,331) and floatation costs - 373,972 - 123,288 (463,620,918) (212,684,041) (308,298,648) (105,533,748) (33,461,916) (43,861,677) (10,112,935) (16,266,311) (Increase) / decrease in assets Element of income and capital Other Receivables (78,171,699) (35,338,843) (83,527,703) 15,301,508 gains included in prices of units sold less those in units redeemed 27,479,684 (14,089,449) 23,135,743 (25,985,669) Increase / (decrease) in liabilities Remuneration payable to the Management Company (495,223) 984,207 (408,501) 28,978 Remuneration payable to the Trustee (19,270) 46,438 (18,156) (2,822) Net income for the period 122,842,949 749,073,255 117,399,213 314,082,902 Creditors, accrued and other liabilities 47,727,718 (92,728,019) 62,291,229 1,464,038 47,213,225 (91,697,374) 61,864,572 1,490,194 Net assets as at the end of Net cash generated from / (used in) operations (64,420,390) (170,897,894) (31,776,066) 525,391 the period 1,308,175,315 2,283,654,408 1,308,175,315 2,283,654,408 Sale of investments 2,477,373,968 3,625,126,920 1,078,342,825 1,937,141,129 Purchase of investments (1,928,898,819) (3,124,839,481) (715,506,350) (1,643,893,223) Net assets as at the end of the Dividend received 47,826,543 24,734,470 5,887,375 3,072,316 period consist of: Profit received on Term Finance Certificates 36,820,548 52,280,533 11,689,009 12,882,164 Return received on bank balances 11,757,345 11,132,627 4,625,914 6,970,028 Capital account 1,181,376,822 1,844,964,633 1,181,376,822 1,844,964,633 Advance tax refund - 122,733 - (6,076) Undistributed income carried Net cash inflow from operating activities 580,459,195 417,659,908 353,262,707 316,691,729 forward 126,798,493 438,689,775 126,798,493 438,689,775 CASH FLOWS FROM FINANCING ACTIVITIES 1,308,175,315 2,283,654,408 1,308,175,315 2,283,654,408 Receipts made against sale of units 247,957,822 206,985,641 117,726,574 139,574,583 Payments made against redemption of units (711,578,740) (419,669,682) (426,025,222) (245,108,331) ------Number of units ------Net cash outflow on financing activities (463,620,918) (212,684,041) (308,298,648) (105,533,748) * Number of units issued (including 913,202 bonus units issued during Net increase in cash and the nine months ended March 31, cash equivalents during the period 116,838,277 204,975,867 44,964,059 211,157,981 2007 and 1,942,304 bonus units Cash and cash equivalents at the beginning of the period 27,676,508 232,210,681 99,550,726 226,028,567 issued during the nine months ended Cash and cash equivalents at the end March 31, 2006) 3,261,708 6,166,792 1,066,801 3,736,817 of the period (Note- 9) 144,514,785 437,186,548 144,514,785 437,186,548

** Number of units redeemed 6,706,169 3,317,733 3,917,055 1,894,522 The annexed notes 1 to 12 form an integral part of these financial statements. The annexed notes 1 to 12 form an integral part of these financial statements. For Faysal Asset Management Limited For Faysal Asset Management Limited (Management Company) (Management Company)

2 STATEMENT OF COMPLIANCE 4.1 This represents tax withheld till September 30, 2004 under the newly inserted Section 233 (A) of the Income Tax Ordinance, 2001 through Finance Act, 2004. This amount These financial statements have been prepared in accordance with the requirements has been claimed as refundable in the return of income for the year ended June 30, of the NBFC Rules, the requirement of the Companies Ordinance, 1984, directives 2005. issued by the SECP and approved International Financial Reporting Standards (IFRS) as applicable in Pakistan. Approved IFRS comprise of such International Accounting Standards (IAS) and IFRS as notified under the provisions of the Companies Ordinance, Note Un-audited Audited 1984. Wherever the requirements of the NBFC Rules, the Companies Ordinance, March 31, June 30, 1984 or directives issued by the SECP differ with the requirements of these standards, 2007 2006 the requirements of the NBFC Rules and the said directives take precedence. The ------(Rupees) ------disclosures made in these financial statements have, however, been limited based on the requirements of the International Accounting Standard-34: “Interim Financial 5 INVESTMENTS 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 Financial assets at fair value statements of the Fund for the year ended June 30, 2006. through profit or loss Listed equity securities 5.1 727,625,216 1,151,058,141 3 SIGNIFICANT ACCOUNTING POLICIES Listed debt securities 5.2 411,277,503 440,448,500

The accounting policies adopted in preparation of these financial statements are the 1,138,902,719 1,591,506,641 same as those applied in the preparation of the annual published financial statements of the Fund for the year ended June 30, 2006.

11 12 Quarter and Nine months ended March 31, 2007 Quarter and Nine months ended March 31, 2007 5.1 Listed equity securities Number of shares Market value as at Number of shares Market value Purchases Bonus Disposed of As at March 31, % to as at Name of the investee company As at July 01, during the shares during the March 2007 net Purchases Bonus Disposed of As at March 31, % to 2006 period received period 31, 2007 (Rupees) assets Name of the investee company As at July 01, during the shares during the March 2007 net 2006 period received period 31, 2007 (Rupees) assets Technology and Communication Shares of listed companies-Fully paid-up ordinary shares having a face value of Rs. 10/- each unless stated otherwise: Pakistan Telecom Co.Ltd. 3,200,000 1,875,500 - 4,125,500 950,000 45,029,996 3.44% World Coll Telecom - 749,000 - 749,000 - - 0.00% Cement 45,029,996 3.44% D.G. Khan Cement Limited 494,875 1,959,700 147,658 2,247,200 355,033 30,710,435 2.35% - Lucky Cement Limited - 52,700 - 52,700 0.00% Textile Composite - Maple Leaf Cement Limited 850,000 - - 850,000 - - 0.00% Artistic Denim Mills Ltd. 11,500 46,000 19,700 37,800 1,708,560 0.13% 30,710,435 2.35% Nishat Chunian Limited 1,219,300 45,000 1,174,300 44,036,250 3.37% Investment Banks/COS/Securities Nishat Mills Limited 1,116,000 - 15,000 1,131,000 - - 0.00% P.I.C.I.C. - 20,000 - - 20,000 1,289,000 0.10% 45,744,810 3.50% 1,289,000 0.10% Modaraba Commercial Banks

Askari Commercial Bank Ltd 150,000 50,000 - 200,000 - - 0.00% First Habib Modaraba 424,000 - - 339,000 85,000 756,500 0.06% Bank Al Falah Limited 665,812 50,020 - 715,832 - - 0.00% - - MCB Bank Limited 200,000 150,000 350,000 - 0.00% 756,500 0.06% National Bank of Pakistan 804,400 1,862,500 27,000 2,386,900 307,000 70,410,450 5.38% NIB Bank 116,734 - - - 116,734 2,568,148 0.20% Paper and Board Bank of Punjab - 875,000 219,375 200,000 894,375 77,721,188 5.94% Saudi Pak Commercial Bank - 1,797,000 - 1,797,000 - - 0.00% Packages Limited 13,420 2,000 - 8,400 7,020 1,572,480 0.12% 150,699,786 11.52% 1,572,480 0.12% Insurance Textile Spinning Adamjee Insurance Co.Ltd. - 912,000 - 912,000 - - 0.00% Dewan Farooq Spinning Mills Ltd. 510,000 - - 43,000 467,000 1,821,300 0.14% Nagina Cotton Mills Ltd 71,000 - - - 71,000 1,128,900 0.09% - 0.00% 2,950,200 0.23% Oil & Gas Marketing Companies Glass & Ceramics Attock Petroleum Ltd 5,000 - - 5,000 - - 0.00% Pakistan State Oil Co. Ltd 100,000 433,300 - 256,800 276,500 98,171,325 7.50% Tariq Glass Industires 12,000 - 600 12,600 - - 0.00% Sui Southern Gas Co. Ltd 700,000 - - 200,000 500,000 12,149,996 0.93% - 0.00% 110,321,321 8.43% Miscellaneous Chemicals Tripack Films 140,000 60,000 - 135,000 65,000 5,102,500 0.39% ICI Pakistan Limited 168,200 127,200 - 25,000 270,400 34,949,198 2.67% 5,102,500 0.39% 34,949,198 2.67%

Power Generation & Distribution Preference shares having a face value of Rs. 10/- each unless stated otherwise: The Hub Power Company Limited - 354,500 - - 354,500 10,262,775 0.78% Cable & Electric Goods 10,262,775 0.78% Pak Electron Limited 5,000,000 - - - 5,000,000 50,000,000 3.82% 50,000,000 3.82% Oil & Gas Exploration Companies Textile Composite Oil & Gas Development Corp Ltd 950,000 1,667,288 - 2,150,000 467,288 55,513,795 4.24% Pakistan Oil Fields Limited 450,000 115,000 - 565,000 - - 0.00% Azard 9 Limited - 1,000 - - 1,000 8,950 0.00% Pakistan Petroleum Limited 500,000 940,000 - 1,240,000 200,000 49,069,990 3.75% 8,950 0.00% 104,583,785 7.99%

Fertilizer Total listed equity shares 19,026,441 19,423,008 455,633 22,561,632 16,343,450 727,625,216 55.62% Fauji Fertilizer Bin Qasim Ltd 1,473,500 3,750,000 - 1,200,000 4,023,500 128,148,482 9.80% 128,148,482 9.80% Synthetic and Rayan Dewan Salman Fibers Limited 900,000 400,000 - 600,000 700,000 5,494,998 0.42% 5,494,998 0.42% 13 14 Quarter and Nine months ended March 31, 2007 Quarter and Nine months ended March 31, 2007

5.2 Listed debt securities 5.5 As disclosed in note 4.1 to the financial statements for the year ended June 30, 2006, the ------Number of certificates ------investments of the Fund in Term Finance Certificates (TFCs) have been revalued based on Market value as discounted cash flow method as allowed by IAS-39: 'Financial Instrument Recognition and Purchases As at at March 31, Percentage to Measurement'. However, the Non-Banking Finance Companies (Establishment and Regulations) Name of the investee company As at July 01, during the March 31, 2007 net assets 2006 period 2007 (Rupees) Rules, 2003 require listed securities to be valued on the basis of closing price of the stock exchange on which the same are listed and unlisted to be valued at the investment price. Had Term Finance Certificates - of Rs.5,000 each. these been valued on the basis required by the NBFC Rules, 2003 the net income for the period and net assets as at March 31, 2007 would have been higher by Rs. 76.21 million (before Commercial Banks adjusting for redemptions) . United Bank Ltd.(1st issue) 25,000 - 25,000 115,127,497 8.80% - - Further, the net assets value of the fund during the last period may also have been lower or United Bank Ltd.(2nd issue) 5,000 - 5,000 23,379,650 1.79% higher based on the prevailing stock exchange rates and as such there may be differences in - the "element of income and capital gains in prices of units sold less those of units redeemed" Investment Companies - - accordingly, the impact of the method used by the fund on the "element of income and capital gains in prices of units sold less those of units redeemed" paid or received is not quantifiable. Jahangir Siddiqui & Co. Ltd. 7,650 - 7,650 35,893,800 2.74% Oil & Gas Exploration Companies Chanda Oil & Gas Securitization Un-audited Audited Company Ltd. 20,000 - 20,000 82,427,002 6.30% March 31, June 30, Naimat Basal Oil & Gas Securitization 2007 2006 Company Ltd. 15,000 - 15,000 49,849,051 3.81% ------(Rupees) ------Leasing Companies 6 CREDITORS, ACCRUED AND OTHER LIABILITIES Trust Leasing Company Ltd. 4,500 - 4,500 10,820,834 0.83% Against purchase of investment classified as financial Technology and Communication assets at fair value through profit or loss - net 69,121,926 20,053,756 Sales load payable 89,971 571,984 Tele Card 20,000 10 20,010 93,779,669 7.17% SECP annual fee payable 1,157,592 1,976,654 Accrued expenses 347,608 437,165 Total listed debt securities 97,150 10 97,160 411,277,503 31.44% Zakat payable 146,714 96,535 Revaluation of derivative financial instruments 187,938 -

Rupees 71,051,750 23,136,094 5.3 Cost of financial assets at fair value through profit or loss as at March 31, 2007 1,217,217,275 7 TAXATION Cost of financial assets at fair value through profit or loss The Fund is exempt from tax under clause 99 of part 1 of the Second Schedule to the Income as at June 30, 2006 1,854,071,980 Tax Ordinance, 2001, subject to the condition that not less than 90% of its accounting income for the year, as reduced by the capital gains whether realized or unrealized, is distributed among Un-audited Un-audited its unit holders. The management intends to avail the tax benefit at the year end. March 31, March 31, 2007 2006 ------(Rupees) ------8 EARNINGS PER UNIT 5.4 Net unrealized gain / (loss) during the period in the value of investments classified as 'financial assets Earnings per unit (EPU) is calculated by dividing the net income for the period by the number at fair value through profit or loss' of units outstanding as at the end of the period. Market value of marketable securities classified as financial assets at fair value through profit or loss 1,138,902,719 1,784,728,254 EPU based on cumulative weighted average for the whole year has not been disclosed as in Less : Cost of marketable securities classified as the opinion of the management determination of such is not practicable. financial assets at fair value through profit or loss 1,217,217,275 1,669,812,992

(78,314,556) 114,915,262 Un-audited Un-audited Net unrealized gain / (loss) in market value of securities classified as 'financial assets at fair March 31, March 31, value through profit or loss ' at the beginning 2007 2006 of the period 262,565,339 150,778,750 ------(Rupees) ------Less: Realised on disposal during the period 225,889,556 115,705,788 9 CASH AND CASH EQUIVALENTS 36,675,783 35,072,962 Less: Unrealized loss on derivative financial instruments (187,938) - Bank balances 144,514,785 437,186,548 (41,826,711) 149,988,224 15 16 Quarter and Nine months ended March 31, 2007 Quarter and Nine months ended March 31, 2007 Un-audited for Un-audited for the period ended the period ended March 31, March 31, 2007 2006 ------(Rupees) ------10 TRANSACTIONS WITH CONNECTED PERSONS / RELATED PARTIES 10.1 During the period Faysal Asset Management Limited Remuneration of Management Company 26,045,794 33,903,983 Sales load 1,715,266 4,041,400 Faysal Bank Limited Issue of units(Current period Bonus) 119,689 371,583 Profit on deposits 13,120 4,674,687 Aqeel Karim Dhedhi Securities (Pvt.) Limited Brokerage fee 36,059 - Purchase of units 71,496,500 - Sale of marketable securities 46,059,000 -

Un-audited Audited March 31, June 30, 2007 2006 ------(Rupees) ------10.2 Outstanding balances as at the period end Faysal Asset Management Limited Remuneration of Management Company-Payable 2,509,558 3,004,781 Sales load-Payable 89,971 571,984 Faysal Bank Limited Cash at bank 22,487 9,749,716 Mark-up receivable - 15,371

11 DATE OF AUTHORIZATION FOR ISSUE These financial statements were authorized for issue on April 14, 2007 by the the Board of Directors of the Management Company. 12 GENERAL 12.1 Figures are rounded off to the nearest rupee. 12.2 Corresponding figures have been re-arranged and re-classified wherever necessary, for the purpose of comparison.

For Faysal Asset Management Limited (Management Company)

Salman Haider Sheikh Iqbal Alimohamed Mohammad Iqbal Chief Executive Officer Director Director 17 18 Quarter and Nine months ended March 31, 2007 Quarter and Nine months ended March 31, 2007