AUDITORS'REPORT

AND AUDITED FINANCIAL STATEMENTS

OF
EBL FIRST MUTUAL FUND
FOR THE YEAR ENDED 30J UNE 2013
~~.09f. ~I~~-=i ~~ ~
t > t r : 1 " ~ ~ I~,;i(;; i (; J1
" -
M.J. ABEDIN & CO
CHARTERED ACCOUNTANTS
TelephoneOff: +880-2-8629771, 9666508
Fax: +880-2-9675340
E-mail: audit @mjabedin.com
mjabedinbd@gmail.com
WebSit e : www.mjabedin.com
Nat ional Plaza (3rd Floor)
109, Bir Ut t am c.a. Dat t a Road,
Dhaka-1205, Bangladesh
AUDITORS' REPORT
TO THE TRUSTEE OF
EBL FIRST MUTUAL FUND
Wehave audit ed t he accompanying financial st at ement s of EBL First Mut ual Fund (t he Fund) namely, BalanceSheet at
30J une 2013and t he relat ed Profit and Loss Account , St at ement of Changes in Equit y, Cash Flow St at ement and not es
t heret ofor t heyear ended 30J une2013.
Management 's responsibilit y for t he financial st at ement s
Management is responsible for t he preparat ion and fair present at ion of t hese financial st at ement s and for such int ernal
cont rol as management det ermines isnecessary t o enable t hepreparat ion of financial st at ement s t hat are freefrommat erial
misst at ement , whet her due t ofraud or error.
Audit ors' responsibilit y
Our responsibilit y is t o express an opinion on t hese financial st at ement s based on our audit . We conduct ed our audit in
accordance wit h Bangladesh St andards on Audit ing (BSAs). Those st andards require t hat we comply wit h et hical
requirement s and plan and perform t heaudit t o obt ain reasonable assurance about whet her t hefinancial st at ement s arefree
frommat erial misst at ement .
An audit involves performing procedures t o obt ain audit evidence about t he amount s and disclosures in t he financial
st at ement s. The procedures select ed depend on t he audit or's judgment , including t he assessment of t he risks of mat erial
misst at ement of t he financial st at ement s, whet her due t o fraud or error. In making t hose risk assessment s, t he audit or
considers int ernal cont rol relevant t o t he ent it y's preparat ion and fair present at ion of t he financial st at ement s in order t o
designaudit procedures t hat are appropriat e in t hecircumst ances, but not for t he purpose of expressing an opinion on t he
effect ivenessof t he appropriat eness of account ing policies used and t he reasonableness of account ing est imat es made by
management , as well as evaluat ing t heoverall present at ion of t hefinancial st at ement s.
Webelievet hat t heaudit evidence wehave obt ained issufficient and appropriat e t oprovide abasis for our audit opinion.
Opinion
Inour opinion, t hefinancial st at ement s prepared inaccordance Int ernat ional Account ing St andards/ Int ernat ional Financial
Report ingSt andards so far adopt ed by t he Inst it ut e of Chart ered Account ant s of Bangladesh as Bangladesh Account ing
St andards/Bangladesh Financial Report ing St andards giveat rueand fair view of t hest at e of t heFund's affairs as at 30J une
2013and of t heresult s of it s operat ions and it s cash flows for t heperiod t hen ended and comply wit h t he requirement s of
BangladeshSecurit ies and Exchange Commission (Mut ual Fund) Bidhimala (Rules) 2001, Trust Deed and ot her applicable
lawsand regulat ions.
Wefurt her report t hat :
(a) wehave obt ained all t he informat ion and explanat ions which t o t he best of our knowledge and belief were necessary
for t hepurpose of our audit and made due verificat ion t hereof;
(b) inour opinion, proper books of account as required bylaw have been kept by t heFund so far as it appeared fromour
examinat ion of t hosebooks.
(c) t heBalanceSheet and Profit and LossAccount along wit h t henot es t heret o dealt wit h by t his report are inagreement
wit h t hebooks of account .
(d) t heinvest ment was made as per Rule56of Bangladesh Securit ies and Exchange Commission (Mut ual Fund) Bidhirnala
(Rules)2001and
(e) t heexpendit ure incurred and payment s made werefor t hepurpose of t heFund's business for t heperiod.
Dat ed, Dhaka
13August 2013
M. J . ABEDIN &CO
Chart ered Account ant s
An independent member firm of.
MOORE STEPHENS
INTERNATIONAL LIMITED
I
EBL FIRST MUTUAL FUND
St at ement of Financial Posit ion ( Balance Sheet )
As at 30 J une 2013
I Not es I
Amount in Taka
30-J un-13
II
30-J un-12
ASSETS
List ed Securit ies - at cost 3.00 682,687,834 649,682,522
Non-List ed Securit ies - at cost 4.00 119,713,637 74,991,414
Ot her Receivables 5.00 5,655,796 5,006,983
Advances and Deposit s 6.00 2,557,605 6,331,106
Cash and Cash Equivalent s 7.00 443,935,614 569,219,790
Preliminary and Issue Expenses 8.00 20,599,409 24,035,257
Tot al Asset s 1,275,149,895 1,329,267,072
eAPIT AL AND LIABILITIES
Share Holders Equit y 1,216,547,466 1,262,442,093
Capit al Fund 9.00 1,000,000,000 1,000,000,000
Dividend Equalizat ion Reserve 50,000,000 50,000,000
Market Risk Reserve 102,721,485 108,419,844
Ret ained Earnings 63,825,981 104,022,249
Current Liabilit ies and Provisions 10.00 58,602,429 66,824,979
Tot al Capit al and Liabilit ies 1,275,149,895 1,329,267,072
Net asset value (NAV) per unit :
At Cost
At Market Value
11.00
12.00
12.17
11.14
12.62
11.54
The accompanying not es form an int egral part of t his financial st at ement .
Trust ee Asset Manager
As per our separat e report of even dat e
annexed
Dat ed, Dhaka
13August 2013
M. J . ABEDIN & CO
Chart ered Account ant s
2
EBL FIRST MUTUAL FUND
St at ement of Comprehensive Income ( Revenue Account )
For t he year ended 30J une 2013
Amount in Taka
2013
INCOME
Dividend Income
Int erest on Bank Deposit s and Bonds
Net Income on Sale of Market able Securit ies
Tot al Income
12,777,280
60,784,109
101,822,085
13,368,551
63,683,455
158,666
13.00
14.00
175,383,474 77,210,672
EXPENSES
16,312,171 20,063,144
3,356,600 3,376,931
1,190,000 1,190,000
12,117 443,089
1,000,000 1,000,000
535,745 759,357
249,621 228,113
49,150 31,350
67,544 64,245
332,351 1,224,248
Management Fee
Amort izat ion of Preliminary &Issue Expenses
Annual List ing Fee Wit h BSEC and St ock Exchanges
CDBL Expenses
Trust ee Fee
Cust odian Fee
Publicat ion Expenses
Audit Fee Including Vat
Bank Charges
Ot her Expenses
Tot al Expenses
Provision against Invest ment -adjust ment / (expense)
Net Profit before Tax
Income Tax expenses
Net Profit aft er Tax Transferred t o Ret ained Earnings
(23,105,299)
5,698,359
(28,380,477)
(53,519,844)
93,483,153
5,200,000
59,803,732
59,803,732 98,683,153
Earnings Per Unit 0.99 15.00 0.60
Theaccompanying not es form an int egral part of t his financial st at ement .
Trust ee Asset Manager
As per our separat e report of even dat e
annexed
Dat ed, Dhaka
13August 2013
M. J . ABEDIN & CO
Chart ered Account ant s
3
EBL FIRST MUTUAL FUND
St at ement of Changes in Equit y
For t he year ended 30J une 2013
Amount in Taka
Provision
Capit al Ret ained
Against Dividend
Tot al
Part iculars
Fund Earnings
Erosion of Equalizat ion
Equit y
Market able Reserve
Invest ment s
Balanceat 30J une 2012 1,000,000,000 104,022,249 108,419,844 50,000,000 1,262,442,093
Dividendfor 2011-12 (100,000,000) (100,000,000)
Earningsduring t he year 59,803,732 59,803,732
DividendEqualizat ion Reserve
Market RiskReserve (5,698,359) 5,698,359
Balanceat 30J une 2013 1,000,000,000 63,825,981 102,721,485 50,000,000 1,216,547,466
4
EBL FIRST MUTUAL FUND
St at ement of cash flows
for t he year ended 30J une 2013
Amount in Taka
2013
II
2012
A. Cash flows from Operat ing Act ivit ies
Int erest on Bank Deposit s 63,461,443 60,700,774
Dividend Income 11,901,941 13,413,637
Advances and Deposit s 3,773,502 720,972
Expenses (27,892,000) (26,134,241)
Net cash from Operat ing Act ivit ies 51,244,886 48,701,142
B . Cash flows from Invest ing Act ivit ies
Invest ment inShares &Securit ies (31,806,839) 127,507,784
Advance for IPO 0
Invest ment in Bond (44,722,223) (9,991,414)
Net Cash out flows from Invest ing Act ivit ies (76,529,062) 117,516,370
C.
Cash flows from Financing Act ivit ies
Dividend paid (100,000,000) (146,416,250)
Net cash used in Financing Act ivit ies (100,000,000) (146,416,250)
Net cash flows (A+B+C) (125,284,176) 19,801,261
Cash&Cash Equivalent s at t he Beginning of t heperiod 569,219,790 549,418,528
Cash & Cash Equivalent s at t he end of t he period 443,935,614 569,219,790
5
EBL FIRST MUTUAL FUND
Not es t o t he Financial St at ement s
As at and for t he year ended 30J une 2013
1.00 Int roduct ion
EBL First Mut ual Fund (here-in-aft er referred t o t he "Fund") was const it ut ed t hrough a
Trust Deed signed on 05 April 2009 bet ween East ern Bank Limit ed (EBL) as 'Sponsor' and
t he Invest ment Corporat ion of Bangladesh (ICB) as "Trust ee" under t he Trust Act 1882 and
Regist rst ion Act 1908. The Fund was regist ered wit h t he Bangladesh Securit ies and
Exchange Commission (BSEC) on 19 April 2009 under t he Bangladesh Securit ies and
Exchange Commission (Mut ual Fund) Rules 2001. The operat ions of t he Fund was
commenced on 19August 2009by list ing wit h Dhaka and Chit t agong St ock Exchanges.
The Invest ment Corporat ion of Bangladesh (ICB) is cust odian of t he Fund and RACE
Management PCL manages t he operat ion of t he Fund as Fund Manager.
1.01 Closure of Books of Account of t he Fund
TheFund has been closing it s books of account as at 30J une each year.
1.02 Object ives
The object ive of EBL First Mut ual Fund is t o earn superior risk adjust ed ret urn by
maint aining a diversified invest ment port folio and provide at t ract ive dividend payment s t o
t heunit holders.
2.00 Significant Account ing Policies
2.01 Basis of Account ing
These financial st at ement s have been prepared under hist orical cost convent ion in
accordance wit h t he Int ernat ional Account ing St andards (IASs)jInt ernat ional Financial
Report ing St andards (IFRSs), applicable t o t he Fund so far adopt ed by t he Inst it ut e of
Chart ered Account ant s of Bangladesh as Bangladesh Account ing St andards
(BASs)jBangladesh Financial Report ing St andards. The disclosures of informat ion made in
accordance wit h t he requirement s of Trust Deed, Securit ies and Exchange Rules 1987 and
ot her applicable Rules and regulat ions.
2.02 Market able Invest ment
(a) Invest ment is recorded in t he Balance Sheet at cost .
(b) Value of list ed securit ies is disclosed at closing quot ed market prices prevailed at 30
J une 2013 on an aggregat e port folio basis as per requirement of Bangladesh Securit ies
and Exchange Commission (Mut ual Fund) Bidhimala (Rules) 2001.
6
2.03 Market Risk Reserve
The difference bet ween cost of invest ment and t he value of invest ment on agreegat ed
port folio basis is shown as Market Risk Reserve. For 2012-2013Market Risk Reserve st ood at
Tk. 102,721,485.
2.04 Dividend Equalizat ion Reserve
The fund maint ains Dividend Equalizat ion Reserve by appropriat ing a port ion of Ret ained
Earning.
2.05 Revenue Recognit ion
a) Gains/losses arising on sale of invest ment are included in t he Profit and Loss Account
on t he dat e at which t he t ransact ion t akes place.
b) Cash dividend is recognised when t he shareholders' right t o receive payment is
est ablished.
c) Int erest income isrecognised on t ime proport ion basis.
2.06 Taxat ion
As per SRO No. 333/Rule/Income Tax/2011 t he income of mut ual fund has been exempt ed
fromt ax.
2.07 Preliminary and Issue Expenses
Preliminary and issue expenses represent expendit ure incurred prior t o commencement of
operat ions and est ablishment of t he Fund. These cost s are amort ised wit hin t en years' t enure
asper Trust Deed.
2.08 Dividend Policy
Pursuant t o t he Bangladesh Securit ies and Exchange Commission (Mut ual Fund) Rules 2001,
t he Fund is required t o dist ribut e it s profit by way of dividend eit her in cash or bonus
unit s/ st ock dividend ( reinvest ment ) or bot h t o t he holders of t he unit s aft er t he closing of
t he annual account s an amount t hat shall not be less t han sevent y percent (70%) of annual
profit earned during t he year.
2.09 Management Fee
Management fee is charged as per t he Trust Deed and under t he proVISIOns of t he
Bangladesh Securit ies and Exchange Commission (Mut ual Fund) Rules 2001.
7
2.10 Trust ee Fee
TheTrust ee is ent it led t o get an annual Trust eeship fee of Taka 1,000,000 only payable semi-
annually during t he lifeof t he fund.
2.11 Cust odian Fee
Invest ment Corporat ion of Bangladesh (ICB) is ent it led t o receive cust odian fee @ 0.10%on
t hebalance of securit ies calculat ed on average mont h end value each year.
2.12 Annual Fee t o BSEC
The Fund is required t o pay annual feeeach year @ 0.10%of t he fund size t o t he Bangladesh
Securit ies and Exchange Commission (BSEC) in t erms of t he Bangladesh Securit ies and
Exchange Commission (Mut ual Fund) Rules 2001.
2.13 Earnings Per Unit
Earnings per unit has been calculat ed in accordance wit h Bangladesh Account ing St andard -
33"Earnings per Share" and shown on t he face of profit &loss account .
2.14 General
Figures appearing in t hese financial st at ement s have been rounded off t o nearest Taka.
8
3.00 List ed Securit ies - at cost
Ordinary Shares
Sect or/Cat egory
Bank
Cement
Corporat e Bond
Engineering
Foodand Allied
Fuel and Power
Insurance
Miscellaneous
IT
Mut ual Funds
BFI
Pharma
Tannery
Telecommunicat ion
Text ile
Servicesand Real Est at i
Travel &Leiser
1,539,453
207,266
1,306
252,285
9,050
1,923,880
54,585
6,552
9,787
15,465,550
725,116
706,605
50,900
34,800
14,143
9,225
421,480
Cost
64,358,695
36,698,134
977,672
35,548,825
4,376,686
129,861,805
8,567,409
2,798,699
479,657
196,304,204
87,489,665
58,300,589
18,433,729
3,097,880
723,348
1,296,388
33,374,449
Amount s in Taka
as at
30-J un-13
II
30-J un-12
682,687,834 649,682,522
682,687,834 649,682,522
Amount in Taka
Market Difference Cost -2012
44,640,229 (19,718,466) 64,358,276
41,107,518 4,409,384 36,698,134
1,090,510 112,838 1,692,589
21,029,747 (14,519,078) 35,548,825
9,640,965 5,264,279 4,376,686
108,333,650 (21,528,155) 129,861,805
6,529,864 (2,037,545) 9,697,372
2,025,944 (772,755) 2,798,653
204,548 (275,109) 479,657
164,002,641 (32,301,563) 195,809,858
70,397,007 (17,092,658) 87,486,405
39,714,198 (18,586,391) 57,322,917
16,329,110 (2,104,619) 18,433,729
6,225,720 3,127,840 3,097,880
339,072 (384,276) 723,348
264,758 (1,031,630) 1,296,388
48,090,868 14,716,419
579,966,349 (102,721,485) 649,682,522 21,431,983
4.00 Non-List ed Securit ies-at cost
PrimeBank Bond
BankAsia Zero Coupon Bond
Farmers Bank Lt d.
5.00 Ot her Receivables
This ismade-up as follows:
a) Dividend receivables
ACI Formulat ion Lt d.
ACI Lt d.
Pubali Bank Lt d.
PRIMETEX
KPCL
Unique Hot el
Bat aShoe Co BD Lt d.
BGIC
Confidence Cement
MJ L BD. LTD.
Padma Oil Co. Lt d.
Pragat i Insurance Lt d.
Reckit t Benkiser BD Lt d.
Renat a Lt d
Square Text ile lt d.
b) Accrued Int erest
Prime Bank Bond
Bank Aisa Bond
682,687,834
65,000,000
9,991,414
44,722,223
65,000,000
9,991,414
119,713,637 74,991,414
2,301,742 835,133
83,250 55,500
46,320 31,600
121 -
11,000 -
34,875 -
1,053,700 -
- 177,450
- 2,116
2,760 2,300
1,036,840 540,960
12,500 12,500
1,295 2,355
17,250 9,200
222 -
1,609 1,152
3,254,387 3,032,375
2,949,041
305,346
9
as at
Amount s in Taka
30-J un-13 II 30-J un-12
99,667 c) Ot her Receivable for Sale Proceeds of Securit ies
EBL Securit ies
PHP St ocks and Securit ies
1,139,475
861
1
98,806
L-_-:-::-::-::--::-:-::c-'
5,655,796
1,122,278
17,196
5,006,983
6.00 Advances and Deposit s
Advance Securit y deposit
Advance BSEC Annual Fees
Advance DSE Annual Fees
Advance CSE Annual Fees
Advance Income Tax
500,000
1,000,000
47,500
47,500
962,605
2,557,605
7.00 Cash and Cash Equivalent s
Bankbalance wit h SND account
Bankbalance wit h Dividend account
FixedDeposit Receipt
379,711,427
64,224,187
443,935,614
8.00 Preliminary &Issue Expenses
Opening Balance
Int erest income from escrow account
Amort izat ion of Preliminary Expenses
500,000
47,500
47,500
5,736,106
6,331,106
392,968,881
63,583,750
112,667,159
569,219,790
24,035,257 27,413,412
(79,248) (1,224)
(3,356,600) _-----'(......:3,_37_6"-, 9 _ 3 1 ...L )
20,599,409 24,035,257
Theunit s are list ed wit h t he Dhaka &Chit t agong St ock Exchanges and quot ed at Tk.9.50 and'Tk.9.50
respect ively on balance sheet dat e.
1,216,547,466 1,262,442,093
100,000,000 __ 10_0-,-,0--:0-=,,0'--.,.00-::-0
12.17 12.62
1,113,825,981 1,154,022,295
100,000,000 _---=.10c:....:0c.:...:,0c..:..00..:..:.,0c:....:0c..:..0
11.14 11.54
9.00 Capit al Fund
Paidup capit al
100,000,000unit s @ Tk 10 each fully paid in cash 1,000,000,000
10.00 Current Liabilit ies and Provisions
Management Fee
Uncleared Dividend
Cust odian Fee
Audit Fee
COBLCharges
Payable t o Sundry securit ies
Wit hholding Taxes (V AT & TAX) Payable
Publicat ion Expenses
Post age &Currier expense
17,400
56,085,337
535,745
36,000
142,748
1,654,965
100,000
30,234
58,602,429
11.00 Net Asset Value per Unit at cost
Net Asset Value
umber of Unit s
NAV Per Unit at Cost
12.00 Net Asset Value per unit at market value
et asset value
umber of unit s
AV per unit at market value
10
1,000,000,000
63,583,750
759,357
27,000
9,232
142,748
2,172,657
100,000
30,234
66,824,979
~~~~- -
I
I
I
I
I
I
I Amount in Taka I
I for t he year I
2013 II 2012
13.00 Int erest on Bank Deposit s and Bonds
Int erest Income from SND Account
Int erest Income from Fixed Deposit Receipt
Int erest Income from Corpot at e Bond
53,855,000
2,131,445
7,697,010
63,683,455
14.00 Net Income on Sale of Market able Securit ies
Bank
Ceramic
Corporat e Bond
Food and Allied
Fuel and Power
Insurance
Miscellaneous
Pharma
Text ile
158,666
158,666
15.00 Earnings Per Unit
Net profit for t he year
Number of Unit s
Earnings Per Unit
59,803,732
100,000,000
16.00 Post Closing Event s
Following event s have occurred since t he balance sheet dat e:
(a) The Trust ee recommended 10%dividend in t he form of Re-Invest ment unit s.
27,891,861
24,110,867
8,781,382
60,784,109
20,636,956
1,002,675
985,200
2,898,023
9,243,396
19,669,142
433,504
42,022,239
4,930,951
101,822,085
98,683,153
100,000,000
0.60 0.99
(b) Except for t he fact st at ed above, no circumst ances have arisen since t he balance sheet dat e
which would require adjust ment t o, or disclosure in, t he financial st at ement s or not es t heret o.
17.00 Comparat ive Figures
Cert ain comparat ive figures have been reclassified from st at ement s previously present ed t o conform
t ot he present at ion adopt ed during t he year ended 30J une 2013
18.00 Approval of t he Financial St at ement s
These financial st at ement s were aut horized for issue in accordance wit h a resolut ion of t he Fund's
board of Trust ee on 13 August , 2013.
~
Ih~
Trust ee Asset Manager
Dat ed, Dhaka
13August 2013
11
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