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					                               Investment Corporation of Pakistan


Introduction:

The Investment Corporation of Pakistan (ICP) was established through an ordinance passed by
Pakistan National Assembly in February 1966. It was established as a development financial of
the Government. ICP came in to being as a result of the advice of Professor Louis Loss from
Harvard engaged as a consultant by the Government of Pakistan.




With the nationalization of the banks and Insurance, ICP was brought within the formal ambit of
public sector. Its major interest was to support the development of the capital market in Pakistan.
ICP was established for small and medium investors to make investment in the different scheme
                                              of ICP.


 Up to 1994 the overall performance of ICP was excellent. But after 1994 has stopped project-
  financing SBP was not ready to extend credit line. Because of depressed and bearish market
 condition and trends overall performance of ICP is not well / satisfactory over the last three or
                                          four years.
                                            History:




WHY ICP WAS ESTALISHED?
During the second five-year plan (1960-65) investors lost their confidence. In the regime of Gen.
Auyb Khan 1965 Government was working on the Green Revolution at the same time it was also
thought that Pakistan also needed a support of industrial infrastructure therefore the Government
 of Pakistan invited Professor Louis Loss from Harvard University to investigate the real causes
 of the lack of depth in the capital market. He found that there was merchandising mechanism o
shares and debentures for reaching upper middle class and middle class of people whose number
    were increasing. Thus he suggested that there should be an organized investment banking
                          institution for strengthening the capital market.




 In the middle of 1965 the organized a committee of officials for further examined the situation.
  The committee observed that existing pattern of share holding was such that 75% of shares of
most companies listed on stock exchange were held by only 19 person, 20% shares were held by
   institutional investors including NIT and remaining 5% shares were in hands of public. The
committee also mentioned that underwriting function performed by the existing institution were
            inadequate to meet the growing demand for understanding by the industries.




ESTABLISHMENT OF ICP
According to the recommendations of the committee the Investment Corporation of Pakistan was
                  established by a presidential ordinance on February 22, 1966.


Objective of ICP

The Ultimate Objective of Investment Corporation of Pakistan is to strengthen the Economy of
Pakistan.
The objectives for the establishment of corporation as given in the ordinance are:




   1. To encourage and broaden the base of investments.
   2. To develop the capital market through:

 Underwriting

 Investment equity

 Secondary market operations

   3.   To mobilize the savings through
   4.   Individual/institutional investors
   5.   Mutual funds
   6.   To promote industrial development in Pakistan.
   7.   To provide professional counseling.
   8.   To speedup economical growth in Pakistan.


   Buying and selling shares on the stock market with a view to provide strength to the stock
                exchange and help in maintaining stability in the shares value.
                                          Functions of ICP
At present the corporation is performing the following functions in order to fulfill its objectives:

Investment Accounts
ICP opens and maintains investment account with a view to broadening the base of share
ownership in the country.



Underwriting
     The corporation through its underwriting operations are significantly contributed towards
encountering sponsors to offer their shares to the public for subscriptions particularly in its initial
         years when sponsors were finding it difficult to raise money from the market.




Equity Investment
      ICP also is providing financial assistance to the institutions by using equity investments.




Mutual Funds
ICP is floating and managing close-end mutual funds for providing benefit of pooled investment
 to investor, since 1967, the corporation has floated 26 mutual funds including State Enterprise
                                      Mutual Fund (SEME).



                                     Term Deposit Account
     ICP also open and maintain Term Deposit Account. The corporation accepts deposits for a
         period of one year to a maximum period of five years at different rates of profits.
Maintaining Portfolios

ICP is maintaining three types of portfolios

1.     Investor’s portfolio

2.     Mutual fund’s portfolio

3.     ICP’S own investment portfolio.
                                        Resources of ICP
 The resources of corporation consist pf its authorized capital, Paid-up Capital, long term loans,
           funds raised through issues, debentures deposit scheme, mutual funds etc.

As on June 30th, 1999



Authorized capital:                       Rs. 200.00    million

Issued subscribed and Paid-up Capita:           Rs. 200.00    million

Long-term loans and financing:                   Rs. 2,436.oo million



                        Borrowing Power

1. With the prior approval of central government, the corporation may for its purpose, raise
finance by



A. Issue and sale of bonds and debentures carrying interest at such rates as may be approved by
the central government.

B. Borrowing moneys from commercial banks and other institutions and sources with or
without the pledge of shares held in its portfolios




2. The bonds and the debentures of corporation may be guaranteed by the central government as
to repayment of the principal amount and payment of interest at such rates as fixed by the central
government at the time bonds and debentures are issued.



                          ICP Investment Portfolio Classified By Groups
                                 No. Of     Holding as at 30-06-98     Holding as at 30-06-99
            Groups                                        Percent of                 Percent of
                                Companies                   Total
                                             Cost                                      Total
                                                                        Cost
                                 Covered


Mutual Funds                        -       667,236         22.0       667,468         23.1

Banks, financial Institutions       -       249,052          8.9       249,052          8.0

Federal Inv. Bonds                  -       546,328         13.6       546,328         14.5

Cotton textile                     155      373,089         13.3       373,089         12.5

Woolen textiles                    6          1,133          0.1         1,133          0 .0

Synthesis and rayon                16        72,872          2.8        72,872          2 .4

Jute                               8          7,956          0.4         7,956          0.2

Sugar and allied                   27        73,680          2.6        73,680          2.3

Cement                             14       121,082          4.3       121,082          4.1

Tobacco                                         627          0.0           627          0.0
                                   4
Fuel and energy                             453,630         13.6       453,630         15.8
                                   23
Engineering and construction                 11,924          0.4        11,924          0.4
                                   39
Auto Allied engineering                      52,806          1.9        52,806          1.7
                                    -
Cables and electrical goods                  13,550          0.5        13,550          0.4
                                    -
Transport and communication                  36,649          1.1        36,649          0.9
                                   4
Chemicals and pharmaceutical                208,482          7.6       208,482          8.5
                                   35
Paper and board                              48,150          1.1        48,150          1.6
                                   12
Vanaspati and allied                         12,832          0.5        12,832          0.4
                                   9
Leather and tanneries                  -              7,020          0.2            7,020    0.2

Food and allied                        -              8,537          1.9            8,537    0.3

Glass and ceramics                     -             15,256          0.6           15,256    0.5

Miscellaneous                          49            65,154          2.6           65,154    2.2


Total                                 401        3,047,045          100.0      2,892,029    100.0




        Authorized Business Of ICP




         ICP opens and will maintain Investors’ Deposit Accounts.

         ICP purchases and sells shares to and from Investors over the counter.

         ICP is engaged in the business of debentures and disclosing of debentures.

         ICP is authorized to issue ICP Mutual Funds.

         ICP manages investment portfolios on behalf of individuals or institutions.

         ICP provides professional counsel regarding investments

         ICP promotes industrial development in Pakistan.

         ICP is a member of Stock Exchange in Pakistan.
 ICP is acting as an agent in matters relating to investment in securities.

 ICP is performing the function of under managing and distributing the issue of stocks shares,
bonds, debentures and other securities either directly or through or jointly with one or more of its
constituent institution or other investment or financial institution.

 ICP can sell and realize all property whether movable or immovable, which may in any way
come into possession of the corporation in satisfaction of its claims.

 ICP acts as trustees in respect of ICP Mutual Funds and any debentures, debenture’s stock or
other securities or obligation and to execute any trusts.
                                 PROCESS OF ISLAMIZATION

                                    OF ICP’S OPERATIONS




The process of Islamization of ICP’S operations commenced in July 1979 when the investments
of all ICP Mutual Funds were made entirely in non-interest bearing securities. The financing
operations were also Islamized by the introduction, from January 1,1981, of a new investment of
financing called the participation term certificates (PTC’S) through which short term and long
term funds are provided to Industrial Projects.




Following the Islamization of ICP ‘S operations, investors deposit scheme is also working on the
interest free basis. By opening a sharing / non-sharing account in ICP, an investor gets profit /
return on his investment portfolio. There is no concept of interest in sharing / non-sharing
scheme / accounts was introduced after Islamization of ICP’S operations.




The term deposit scheme of ICP ensures regular income to the investor with handsome rates of
profit and this scheme is also free from the element of interest.
                                       Branches of ICP

The head office of ICP is in Karachi. The corporation had established ten branches of ICP in:
 1. Karachi
 2. Lahore
 3. Rawalpindi
 4. Islamabad
 5. Peshawar
 6. Quetta
  7. Faisalabad
  8. Multan
  9. Hyderabad
  10. Sukkar
 The corporation has closed its seven branches out ten branches because of depressed market
        conditions and loss. Now only three branches are running that are situated in:
  1. Lahore
  2. Islamabad
  3. Karachi
The accounts of closed branches are transferred in these three branches and they are dealing in
                                       these accounts.
   Part II




MANAGEMENT

  SYSTEM
                  Board Of Directors
                 (As On June 30, 1999)

                   Managing director
                       Mr. Asadullah Khawja


                          Directors
      Syed Samsamul Haque                  Joint Secretary (IF)
                                        (International Finance Wing)
                                              Finance division
                                          Government of Pakistan


    Prince Abbas Khan                     Joint Secretary (I & E)
                                  Ministry Of Industries & Production
                                          Government of Pakistan


     Mr. Asif Saleem                        Managing Director
                                 National Engg. Services Pak (Pvt) Ltd


          Dr. Najeeb Samie                       Chairman
                                 State Life Insurance Corp. of Pakistan.


     Mr. Istaqbal Mehdi                     Managing Director
                                       National Investment Trust Ltd.


          Mr. Muhammad Mian Soomro              President
                                         National Bank of Pakistan.


Mr. Khalid A. Sherwani                Senior Executive Vice President
                                           United Bank Limited.


          Mr. Shaukat Tarin                     President
                                Habib Bank Limited.


  Mr. S. M. Munir                       Director
                        Muslim Commercial Bank Limited.


  Mr. Rashid M. Chaudhry              President
                           Allied Bank of Pakistan Limited.




Mirza Khurshid Baig                 Secretary-ICP




       SENIOR MANAGEMENT
         Managing Director:
                     Mr. Asadullah Khawaja
       Deputy Managing Director:
                           Mr. Behram Hasan
        Executive Vice President:
                       Mr. Abdul Latif Uqaili




    Portfolio Wise Organization Chart
       Establishment-Wise Organization Chart



       Department Of ICP Lahore Branch
           1. Investment Department
             i.        Account Opening Section
ii.         Non-Sharing Discretionary Accounts Section
iii.         Non-Sharing Non-Discretionary Accounts
            2. Account Department
         3. Administration Department
           4. Computer Department
        5. Shares & Transaction Section
                  6. MO & R Cell




                  Department’s Chart
                              Functions Of Departments




1. Investment Department



Investment department consists of:

                                  i.    Account opening section

                                ii.    Sharing account section

                               iii.    Non-sharing Discretionary accounts section

                               iv.     Non-sharing Non-discretionary accounts section



                         Functions Of Account Opening Section
Account opening section performs following functions:

1-     Open sharing /non-sharing accounts

2- Provide every type of information to the client about the market. ICP and market
operations.

3- Guide clients that how to open an account and explain rules and regulations and operations
of an account.

4-     Convince the client to open an account.

5-     Allocation of account number.

6-     Safe keeping of:



i)             Specimen signatures cards.

ii)           Account opening form.

iii)          Account agreement and GPA.

iv)          Investor’s file.

7-     Withdrawal of documents/account opening form




To perform all these functions, account-opening officer should be:



 Well mannered.

 Well behaved.

 A good communicator.
    Knows about the market operations current position and trends of market.




                            Functions Of Sharing And Non-Sharing Accounts




The officer and other staff of sharing and non-sharing department perform following functions:




      1.    Maintain investor’s accounts.
      2.    Designing and management of portfolios for investment in shares.
      3.    Conform the dividend and bounds shares from the Head Office.
      4.    Place orders for purchase and sale of shares and securities.
      5.    Maintain investor’s files.
      6.    Receive rights from companies and exercising of rights.
      7.    Monthly review of portfolio and change the portfolios according to market trends.
      8.    Check and control the statements of the accounts relating to investor’s scheme.
      9.    Provide funds/ deposit to the investor from his account at the request of investor.
      10. Close an investor’s account at the request of the investor.




                                       Functions Of Account Department



1)         Disbursement of salaries.

2)         Posting a voucher.

3)         Reconciliation
4)      Filing of vouchers.

5)      Receipts and payments to investors.

6)      Maintain books of accounts.

i)              Cashbook.

ii)            Petty cash book.

iii)           Cheque issued register.

iv)           Medical disbursement register.

v)             Advance to staff register.

vi)           Investor’s scheme vouchers numbering registers.

vii)          H.O transferring vouchers numbering register.

viii)        Separate registers for each type of advance are maintained.




                                  Functions Of Admin Department




1)      Department staff requirements in the branch.
2)    Maintain personal records of the employee.

3)    Maintaining the old record section.

4)    Appointment of staff.

5)    Maintenance of office premises and other general services.

6)    Procurement and supply of stationery and stores.

7)    Supervision of non-clerical and general staff including typing pool and mail section.

8)    Receipt, dispatch and distribution of mail.

9)    Purchase of vehicles and their maintenance.

10) Issue increment letter.

11) Keep record of all sick and casual leaves of staff.

12) Maintain register of overtime for clerical and non-clerical staff.

13) Keep record of all stationary taken by the staff of ICP.
                                 Share And Transaction Department



Functions Of Shares Department



1) Maintain Preliminary security deposit register (PSDR) for shares received from head office
Karachi.

2) Prepare security deposit letter (SDL) for shares received from investor. Six copies of SDL
are prepared and sent one copy to:

i)             Shares department (H.O.).

ii)           Shares department (H.O) along with transfer deed.

iii)          Computer department.

iv)           Investor’s copy.

v)            Investor’s file.

vi)           Office copy.

3)     Maintain a documentation register.

4)     Physically deliver shares to the investors.

5)     Safe keeping of shares.

6) Attest all entries incoming and outgoing securities in transit and record in a permanent
securities deposit register (PSDR) as well as transit Register.

7)     Demand shares/securities from head office for onward delivery to the investor.

8)     Keep up to date records pertaining economical and financial analysis of various companies.
FUNCTIONS OF TRANSACTION DEPARTMENT




 The main function of transaction section is to operate in the stock exchange. The transaction
section officer deals in the scale and purchase of shares. Transaction officer gets sales and
purchases order from investment officers.

 Maintains separate registers for

 Head officer sale

 Head office purchase

 Local sale

 Local purchase

 Recording of confirmation of sale / purchase orders.

 Recording of cancellation of sale / purchase orders.

 Recording of debt and credit vouchers against purchase and sale orders.

 Prepare purchase clearing schedule and sale clearing schedule. Seven copies of clearing
schedule are performed for:

Share department (HO)                 3 copies

Account department (HO)               2 copies

Transaction department                1 copy

Broker                                1 copy
 They sent this clearing scheduling along with sale/purchase confirmations and brokers
confirmation letter to share deptt. (HO) Karachi and transaction department (branch). They sent
only purchase/sale confirmations along with clearing schedules to account deptt. (HO) Karachi.




                                     Computer Department



Computer section is equipped with the modern technology. Computer section is using AS400 for
all operations. The computer section and investment department through the terminal uses
application system 400. The computer section operates the main server. AS400 is mainframe and
its model number is 9402-E02. Investment Corporation of Pakistan uses this system AS400 in all
organization. But now ICP is thinking to replace it with the Window NT.



Functions:

There are following three systems which are being computerized by ICP Lahore’s
computer section:



1)   Accounting system.

2)   Investment system.

3)   Transaction system.




1. Accounting System
   All the general vouchers originated by the account department are punched in
   computer. Vouchers are punched in computer on daily basis operator of computer has
   to enter the voucher in the computer, remaining work is done automatically by the
   computer. The computer operator also prepares trial and general ledger.



   2. Investment System

    All the vouchers that relate to the investor’s scheme are also entered in the system.
    Investor’s records are updated by entering the transaction relating to their account.
   The investment officers through terminal also share this information. This system was
                     developed to accommodate the investor scheme.
                                          3.Transaction System
    Under this system, all the transaction of sale / purchase either local or head office are operated.
  The process starts when investment officer makes sale / purchase orders either local of       head
                             office and precedes it to the transaction officer.
               The orders then come to computer operator for entering in computer.
 In case of local transaction all the process is done at the Lahore and only intimation of transaction
    is sent to the head office accounts department while the sale / purchase orders of head office are
     proceeds to transaction department head office and these transaction go to account department
                                               for payment.
     The account department precedes this process to head office computer department, which
                  completes the transaction and sends back to the ICP Lahore branch.
   These transactions come to the transaction officer to update his manual record and computer
                        department also updates the computerized record as well.

                                             MO & R Cell
        The basic function of this department is monitoring, operations and recovery of project
   financing. All the matters from the application of loan to the approval of loan are handled by this
    department. As ICP has stopped project financing (due to unavailability of credit line from State
                     Bank) so only monitoring and recoveries are done now a days.
  In monitoring, officer of MO & R Cell follow up those parties who had financed by ICP and
 study their balance sheets and other statement annually, monitoring officer also negotiates with
                            debtors about the rescheduling of loans.


At present only recovery function is done at Lahore branch. All the matters of recovery of loans
                                  are handled by MO & R Cell




                                            Part III

                                     MARKETING MIX




                                  INVESTOR’S SCHEME



INTRODUCTION:



The corporation introduced the investor’s scheme in 1967. The investor’s scheme of
the corporation is one of the initial steps maintained for individuals who for their
limitations cannot operate directly on the market taken for widening the base of share
ownership through investment accounts. These account are
This scheme is also for the individuals and institutional investors who do not wish to
operate through mutual funds, under this scheme, the investors have some freedom
and participation, which is not available in the mutual funds.



The corporation’s investor’s scheme has been very successful in fulfilling the
objective of broadening the base of investment. As a first step the corporation opened
its branches in important cities of the country for facilitating such investor who were
facing difficulty to operate on the only stock exchange at Karachi in 60’s.



Further in order to provide an incentive to small and medium investors for investing in
shares, the corporation provided extension to investment account holders were
provided at concessional rates in the ration of 3:1 in initial years and two 2:1
thereafter, 3:1 means investor has to deposit 1000 and against his deposit, ICP will
give him 3000 loan which will be deposited with ICP and this deposit will be used
only for investing in shares. Later on there ration changed from 3:1 to 2:1.




                                 Conversion of Accounts

In 1980, ICP converted its existing accounts into sharing and non-sharing account. An
existing investment account was converted into non-sharing account only if it had a
credit balance. And old investment accounts only their approved securities had larger
value than debit balance.



All the shares held in old investment account were transferred to Non-Sharing account
at the respective average rates through BIT vouchers whereas only approved shares
were transferred to Sharing account at prevailing market rate through internal
purchase / sale vouchers, without any BIT vouchers and service charges.
Two types of accounts were introduced in 1980

   1. Sharing account
   2. Non-Sharing account

Since 1967, the corporation through its investor’s scheme attracted thousands of
investors to make investment in Shares of listed companies (which are quoted on
stock exchange).




SHARING ACCOUNT



Definition

“Sharing scheme means an investor’s deposit account in which ICP also makes
deposit for purchase of approved shares and share the net income or lost”.



“Sharing scheme means an investor’s deposit account in which ICP also invests and to
assist in implementing the policy of the Government of Pakistan to substitute interest-
bearing ICP advanced by profit and loss Sharing investment.”



In short in sharing account:

   1. ICP also makes deposit with the investor
   2. ICP share profit and loss with the investor
Introduction

In 1980, ICP introduced two types of investor’s scheme

     1. Sharing account
     2. Non-Sharing account

In Sharing scheme initially ICP provided this incentive to the investor that 40%
deposit by investor and ICP will deposit 60%. In case of profit ICP will get 40% profit
and investor will get 60% of the profit and in case of loss Investor will bear 40% of
the loss and ICP will bear 60% of loss.



In 1991 when there was no restriction on the foreign exchange. Government allowed
the ICP to have the ration of 50:50-50% will be equity and 50% will be invested by
ICP and similarly profit and loss will also be distributed on equally basis.



                               Important Features Of Sharing Scheme



ICP’S deposit in the account



1.   ICP makes deposits only in sharing accounts. It makes deposit either directly or through
such sources as the board may approve.

2.    ICP’S deposit in a Sharing account is always equal to the deposit of the account holder/
investor.

3.   Total asset at all times in sharing account is the property of ICP and account holder in equal
proportion.

4.   ICP cannot deposit money in sharing account less than Rs.50, 000 and investor also has to
deposit the same amount.

5.    ICP will get 50% of the profit and (in case) will bear 50% of the loss.
Managing of Account:

    ICP manages investor’s deposit account for self and for the account holder(s). ICP
            receives the following fee and charges from the account holder.



                      i.        Services Charges

Service charges are calculated at the rate of ½ % of money value of each transaction
of sale and purchase at the time of that transaction.



                    ii.       Management Charges

Management charges are calculated at the rate of 3/4% on cost of investment at the
end of each quarter. So management charges are 3% annually.



Annual Account of Sharing Accounts

Each Sharing account is examined after the 30th of June in every year to determine the
net assets of the account and the profit and loss accrued to the account the fiscal year.
The profit / loss of sharing account consists of:



Investment at cost

+/- Credit / debit balance

-      Net total deposits made by the ICP and account holders.
Withdrawal Of Funds / Deposit

    In a sharing account investor can not withdraw some amount of his deposit because
      sharing account is a joint account of ICP and investor, but in a sharing account,
      investor can withdraw his accrued profit from his account, but investor can not
       withdraw any profit of accrued prior to finalization of the yearly account and
                           declaration of net profit of the account.



Withdrawal Of Shares


  In Non-Sharing accounts, investor can withdraw his shares or transfer his shares on
his own name. But in sharing account investor cannot withdraw his shares and transfer
                              shares on his own name.



Distribution of Profit Adjustment of Loss



1)     In Sharing account, profit / loss is distributed equally between the investor and ICP

2) Profit distribution is done on 1st July. (On an annual basis and the final year for this
purpose is July-1 to June-30.)

3)     Profit is paid after the deduction of the tax and zakat if applicable.

4)     The net profit / loss in sharing account compromises:




Investment at cost

+/-      Credit / Debit balance in the investor account

-        Net total deposit made by the investor and ICP.
In case of profit, ICP withdraws his share of profit and the investor gets his share.

In sharing account ceiling limit is Rs.50, 000 when the investor’s deposit is less than
Rs. 50,000 profit distribution is not made but reinvested till the balance of deposit
reaches Rs. 50,000.



When liquid funds are not available in an investor’s account, the profit distribution
may be made by scale of shares held in investor’s account, if so required by the
investor. Payment is made to the investor by crossed cheque. The cheque is send to
the depositor’s bank under registered mail



Closure Of Sharing Account
  Sharing account is a joint account of ICP and investor. If investor wants to close his
  account, he has to give 15 days notice in writing to the ICP and declare his intention
 to close the sharing account. On the other side if ICP wants to close account then ICP
   has to give written notice to the investor. If ICP closed the Sharing account at the
request of the investor, then ICP shall not allow the investor to open an account within
                one year from the date of closure of his sharing account.



Procedure For Closing Of Account

1)   First of all investor sends an application / notice to the ICP for closing of his account

2) After receiving an application, investment officer sharing account prepares a sale order
sheet about the sale of the share of the investor’s account and send this sheet to Karachi head
office for the sale of shares.

3)    Investment officer sharing account fills “closure of account” form and send it to the head
office.

4)   After selling of all shares department Karachi to finally close the account.
5)    ICP determine the net assets of the account and distributes them between the ICP and the
investor.

6)    Payments to investor are always made by crossed cheques and to “account payee only.”

7)   In case of joint account, the cheque should bear the names of all or any one of the account
–holder. However, if all the joint account-holder authorizes in writing to issue cheque in one
name it may be issued accordingly.




                               NON-SHARING ACCOUNT

INTRODUCTION

In 1980, ICP introduced two type of investor's scheme:

     1. Sharing Scheme
     2. Non-Sharing Scheme

Non-Sharing Scheme /account is further divided into two accounts:

                I.   Non-Sharing Discretionary Account

              II.    Non-Sharing Non-Discretionary Account

In Non-Sharing account:

                          i.     ICP does not make any deposit

                         ii.    ICP does not share profit and loss with the investor.



Definition:




1. Non-Sharing Discretionary Account:
  “ Non-Sharing discretionary account means a deposit account /investment account
                         which is always operated by ICP.”



2. Non-Sharing Non-Discretionary Account:

    “ Non-Sharing non-discretionary account means a deposit account /investment
                   account which is solely operated by investor.”




                 IMPOTANT FEATURES OF NON-SHARING SCHEME:



1. Who can make deposit in this scheme?



 Any person or persons, who are Pakistani nationals and want to open account, can
open a Non-Sharing account. A Non-Sharing account can either be discretionary or a
                           non-discretionary account.



2. Joint Non-Sharing Account:
Investors can open a joint Non-Sharing discretionary / non-discretionary account. But
more than four persons cannot open joint account. Joint application is not acceptable.



3. How to Open an Account?



 If an investor wants to open an account with Investment Corporation of Pakistan, he
has to fill up prescribed application form. Investor has to sign the form and investment
  officer also takes his signature on a specimen signature card. Investor has to give a
copy of his national ID card. He has to comply with all other requirements specified in
                                   the application form.




                                Operations Of An Account

1. Non-Sharing Discretionary Account
 Non-Sharing discretionary account is operated by ICP but if the investor wants to
operate his account then he can do so. If investor wants to be a sleeping investor then
            ICP operates his account otherwise he would operate himself.

2. Non-Sharing Non-Discretionary Account
  Non-Sharing discretionary account is solely operated by the investor. ICP cannot
   operate his account. Investor gives his instruction in writing to the ICP for the
                 operation of his account and ICP acts accordingly.
3. Distribution of Profit and Loss
        In both cases of Non-Sharing discretionary account and Non-Sharing non-
    discretionary account whole profit and loss goes to investor. ICP does not take any
                   profit or beer any loss from the Non-Sharing account.



4. Declaration For Non-Deduction of Zakat

If any investor declares for non-deduction of zakat from his account, he has to submit such
declaration to the ICP branch office at least one month prior to 1st of Ramazan.




5. Closure of Non-Sharing Account
     ICP closes a Non-Sharing account at any time at the request of the investor. The
    request should b in writing. When an investor wants to close his account, he has to
                             pay all the ICP charges and dues.

6. Management Of Accounts
    ICP manages investor’s deposit account and receives charges its service and
management charges. The term “Management ” means that ICP performs a number of
                      different tasks for investor includes:

   Acquisition of shares and securities by subscription by original or right issue.

   Sale of shares and securities.

   Transfer of shares and securities.

   Collection of benefit including dividend and bonus.

   Registrations of Shares and securities.

   Purchases of shares and securities.

   Professional council and assistance and other services related to investment.




ICP is entitled to receive the following fees and charges from account holders:
a. Service charges

 ICP receives service charges on every transaction of sale and purchase at the time of
 transaction. Service charges are calculated at the rate of ½% of money value of each
                                      transaction.

b. Management Charges

Management charges are calculated on cost of investment and are 3% annually. These
 charges are calculated at the rate of ¾% of amount of investment at cost on the last
                            day of each quarter of the year.



7. Withdrawal Of Funds / Deposit



In Non-Sharing account, investor can withdraw his funds / deposit if the investor has
credit balance in his account and he wants to withdraw some amount of his funds, he
has to write an application to the ICP about the withdrawal of funds.

After receiving application, investment officer (Non-Sharing account) checks his/her account /
holding and will issue a debit voucher in which investor’s bank is credited and ICP’S bank
and investor’s account is debited. After receiving debit voucher, accounts officer issues check to
the investor.




In other case, if investor has no credit balance and he wants to withdraw some amount
      of his deposit, then there would be two criterion depending on the nature of
                        discretionary / non-discretionary account.



Case: Non-Sharing non-discretionary
               Investor has to give instruction in writing that please sell my shares and
               give required amount of money. ICP will sell his shares and after 10
               days of application, ICP will issue check to the investor.



Case: Non-Sharing discretionary

If wants to withdraw his deposit and gives an application to the ICP then investment officer has
the right to sell his shares and give him the required amount of money. But if the investor has
given the instruction to ICP that you cannot operate my account without my instruction, then
investment officer cannot sell his shares without his instruction or permission




Withdrawal Of Shares Or Return Of Shares To Investor
Investor can transfer shares on his own name or withdraw shares from ICP only to his
  other Non-Sharing account; moreover investor cannot withdraw shares in case of
                                    sharing account.



Why Investor Withdraws Shares?

Investor withdraws shares from ICP because of certain reasons:

   1. To avoid the management charges investor withdraws his shares. If shares are with the
      ICP then investor has to pay 3% per annum management charges to ICP.
   2. Investor withdraws his shares and keeps them with himself. Whenever market conditions
      would improve and price of his shares will increase he would sell his shares in the market
       and would get maximum profit.




Procedure Of Withdrawal Of Shares
 ICP receives an application about the withdrawal of shares from investor.

 Concerned investment officer checks investor’s holdings (account and shares).

 A requisition is prepared by the concerned investment officer

 The concerned investment officer and an officer of shares department jointly sign requisition.

 This requisition is sent to the head office Karachi, one copy remains with the concerned
investment officer and the other copy goes to the officer of share department as a record

 The shares department, head office Karachi confirms investor’s holdings according to his
record. And sends shares physically to the branch.



                                               Pricing




The shares internally transacted between the investors are priced on the basis of
middle price reflected in the tern over list issued by the stock exchange on the day on
which the transactions are matched.



 If there is no transaction in a particular share, the price printed in the official ready board
quotation is taken as between the investors, is matched at that price.

 If there are three are more transaction in odd numbers, the middle price is taken as the
matching price.

 If the numbers are even, exceeding two, matching is affected at the list of two middle prices.
TRANSFER OF ACCOUNTS




In ICP we have got two types of transferring accounts:

   BIT (Branch Internal Transfer)

   TAB (Transfer Account Branch)



BIT (Branch Internal Transfer)



This term is used when one account is transferred to another For example; shares and
funds are transferred from sharing account to a non-sharing account or from one non-
                   sharing account to another non-sharing account.



TAB (Transfer Account Branch)



This term is used when one account is transferred from one branch to another branch.
                            BRANCH INTERNAL TRANSFER

                                               OR

             TRANSFER OF ONE ACCOUNT TO ANOTHER ACCOUNT




        I.    When an investor maintains more than one account he wants to merge his accounts




       he can do this. For this purpose investor has to give a written request to ICP.




      II.    In case of sharing accounts investor cannot transfer his shares / balance from one




       sharing account to another account.

   III In case of non-sharing accounts investor can transfer his shares / balance from one account
to another.

IV Investor can transfer shares / balance from a Sharing account to non-sharing account but
he cannot transfer balance from non-sharing to sharing.

V The balance in the account being closed is debited to the concerned account and credited to
the accountto which it is being merged.

              VI The following documents are prepared to effect transfer:
a)   Port folio confirmation - PC form

b)   Payment / transfer of account —- PTA form

c)   Statement of account being closed

d)   Debit voucher

e)   Transfer authorization




                              TRANSFER ACCOUNT BRANCH

                                               OR

                 TRANSFER OF ONE ACCOUNT TO ANOTHER BRANCH




A. An Investor has to give a written application / request to ICP for one transfer of his account
to other branch.

B. The application for transfer, must be signed by the investor in accordance with the
signature recorded with ICP.

C. The manager must verify the investor’s signature and his verification action must be
recorded.
The investment officer, who is currently handling the concerned account is
responsible for processing transfer formalities.

Transfer of an investor’s account to another branch must be authorized by the chief
manager.



1.    In case of transfer of account to another branch the investment officer will furnish the
following to the Transferee branch:

     2. Account opening form
     3. Debit / credit voucher
     4.   Specimen signature card
     5.   General power of attorney
     6.   Investors account agreement
     7.   Three copies of each TAB
     8.   Latest address of the investor an upto-date statement of investor s account




                                    BENEFITS ON SHARES



Investors get three types oF benefits from the shares:

1.     Dividend

2.     Bonus Shares
   3.   Right Shares

   Dividend




   Conipanies announce dividend on their shares from time to time. ICP recieves this
   dividend from the companies and add it in the credit balance of the investor.

   Bonus Shares




   Companies also give bonus shares to their shareholder. Bonus shares are free of cost
   that investor has to pay nothing for it. These bonus shares are added in the portfolio of
   investor




   Right Shares

   o If a company wants to increase its capital, it will issue right shares to its existing shareholder
   after getting approval from the controller of capital issue.

   o Company cannot offer these right shares to the general public.

   o Company offers right shares to the existing shareholders.

   o These right shares are not free of cost.

   o If shareholder wants to purchase right shares that are offered to him, he can buy them
   otherwise he has the right to sell them in the market after getting approval from the company.

o Some companies offer 50% right shares; it means if investor has 200 shares he is
  offered 100 right shares, if company offer 400% right it means if investor has 100
shares he is offered 400 right shares. Right shares are offered to existing shareholder
at par.




                               PORTFOLIO DESIGNING




   Portfolio designing requires professional knowledge and skill, while designing a
 portfolio in the light of investment objectives of any investor; the investment officer
  should try to secure shares that offer the best possible returns. The investments in
        forms of attractive dividends, bonus shares and reasonable growth etc.



The Principal of diversification of stock should be followed in designing a portfolio
with a view to minimizing risk and securing the best possible returns for the investor.
Prior to the inclusion of shares in investor portfolio, the investment officer examines
the nature and management of business, its past performance and market-ability, the
  earning per share, the past dividend record, the current price of the stock and its
                                  prospects of growth.



PORTFOLIO MANAGEMENT

All sharing and non-sharing accounts are reviewed on monthly basis. For this purpose
each investment officer reviews sufficient numbers of accounts every day by
completing the portfolio review form with his recommendation to the Manager / chief
manager for his approval. After the recommendation have been approved by the
manager/chief manager, investment officer incorporates the final recommendations on
the remaining two copies Of the review form and arranges immediate dispatch to the
investor concerned for his information/approval. He must ensure that the portfolio
reviews are dispatched to the investor on top priority basis preferably the same day.
PURCHASE AND SALE OF SHARES



If an investor decides to purchase or sell certain shares and securities through an investment
account maintained with ICP, he should convey his instructions to the ICP. Purchase or sale
order should be communicated to ICP in writing. Instructions on telephone are not acceptable.
According to the rules and regulations of ICP investors cannot make direct purchase and sale of
shares with brokers against their accounts with ICP.




If an investors wishes to purchase shares against sale of shares held in his portfolio,
purchase order should not be placed unless the sale is confirmed. The cost of purchase
plus services charges must not exceed the expected sale proceeds.



ORDERS FOR PURCHASE/SALES OF SHARES



There are three types of orders for purchase /sale of shares or securities

   1. FOK order /unlimited order
   2. Limit order
   3. Matching of purchase and sale order



FOK Order (Fill or Kill Order):




 FOK order is suitable for a quick or urgent transaction.

 FOK order remains valid for three stock exchange working days from the date on which
the order is placed with the stockbroker.
 FOK order is automatically cancelled on the expiry of three days.

 FOK order connotes a transaction irrespective of the extent to which the price may have to
be raised in case of purchase. Or lowered in the case of shares and securities



Limit Order.



 ICP limit order is suitable for less urgent transaction.

 ICP limit order remains valid from seven calendar days from the days the order is placed
with the stockbroker.

 Limit order is automatically cancelled on the expiry of seven days.

 In a limit order the investor fixes the price at which he wants to buy/sell a share, so he
gives price limit.




Purchase Or Sale Confirmation
ICP (Lahore Branch) send purchase/sale order to the head office transaction section if
  share are purchase or sold within three or seven days in respective cases then head
          office sends then purchase / sale confirmation to the ICP (branch).

Automatic Cancellation
   ICP sends purchase/sale order to the head office transaction section .if order is not
 executed within three days or seven days according to the respective cases then head
  office Karachi transaction section sends the automatic cancellation to ICP (branch).



Matching of Purchase and Sale Orders.

 ICP may receive purchase orders from some account holders and sale orders from
 others in respect of same shares and securities. It may, as a convenient and speedy
 method of execution of such order internally matches such orders out of “ investors
   pool” or its own portfolio. ICP receives brokerage of such execution of orders.
  However brokerage is not charged if sale /purchase takes place within one family
           account maintained by husband, wife, parents and children.



The price at which shares are sold/purchase by internal matching shall be the median
(middle) price as reflected in the fluctuation sheet of the stock exchange for the day.

In absence of any transaction of such shares on stock market that day, the price quoted
on the official Ready Board Quotation list of the stock exchange for the day is
considered to be the matching price.
                                       MUTUAL FUNDS



What is Mutual Fund?

  Investment companies are financial intermediaries that pol1 the funds of investors
  which arc seeking some general investment objectives and invest them in number
frequently traded different types of securities. This pooled fund provides thousands of
  investors with proportional ownership diversified portfolio, which are operated by
                          professional investment managers.



Mutual funds remove risk associated with putting all your eggs in one basket, as the typical small
investor tends to do. Building up a diversified portfolio requires large funds, which is beyond the
means of an individualsmall investor. In this perspective mutual funds offer excellent
opportunity to avail benefits of large-scale portfolio and investing them in shares, which promise
higher rates of return.



MUTUAL FUNDS OFFERS:

 Professional management

 Diversification of managed portfolio

 Availability of diversified investment opportunities to common investors

 Collective sharing or profit

 Collective sharing of burden out of fund management

 Reduction in transaction cost

 Portfolio is constructed according to the fund’s objectives.

In order to attract more people towards mutual funds, the return on mutual funds
should be better than that of returns on the present saving and other schemes
                                     ICP’S Mutual Funds

ICP has introduced closed-end mutual funds in Pakistan. These mutual funds have successfully
broadened the base of investment by providing the investors an excellent opportunity of pooled
investment.




For the floatation of any mutual funds, ICP determines the amount that it has to collect. They
collect money from the general public. After collecting money, Investment Corporation of
Pakistan purchases portfolio(shares) from the market. This portfolio consists of shares of
different companies. Then Investment Corporation of Pakistan issues share certificate to the
investor \ Funds holders and announces its portfolio at the year-end, ICP determines profit and
loss during the year because of purchase and sale of shares andannounces dividends. The total
income of funds after deducting the expenses is distributed among its certificate holders in
proportion to their investment.



The first ICP mutual fund was floated in June 1967. Since then ICP has over the year, floated a
series of closed-end mutual funds. So far the corporation has floated 26 mutual funds including
one State Enterprise Mutual Fund (SEMF). Investors find their investment safe and return-
oriented in majority of ICP mutual funds.



Purpose Of Mutual Funds:

The main purpose of mutual funds is to provide maximum possible return to the fund holders. To
achieve this objective management of funds chooses diversified portfolio so that risk should
minimize and profit should maximize.

Another purpose is to attract the general public to invest in the stock market and improve
secondary market operations.
                  ICP’S MUTUAL FUNDS

MUTUAL            PAID UP          Year     Face    Mtd.   Year of
                  CAPITAL
FUNDS    CODE                      Ending   Value   Lot    Listing
                (Rs. In Million)
1
    st
         ICP Mutual     ICP I              June   10   500
                                  50.000                     1967
           Fund
                        ICP II             June   10   500
2
    nd
          ICP Mutual              50.000                     1968
           Fund        ICP III
                                  50.000   June   10   500   1969
3rd ICP Mutual         ICP IV
                                  50.000   June   10   500   1970
     Fund
                        ICP V              June   10   500
4rth ICP Mutual                   50.000                     1972
      fund             ICP VI              June   10   500
                                  50.000                     1973
5th ICP Mutual         ICP VII             June   10   500
                                  50.000                     1975
     Fund
                       ICP VIII            June   10   500
                                  50.000                     1976
6th ICP Mutual
     Fund              ICP IX              June   10   500
                                  50.000                     1976
    th
7        ICP Mutual     ICP X              June   10   500
           Fund                   50.000                     1977

    th                 ICP XI              June   10   500
8        ICP Mutual               50.000                     1978
           Fund
                       ICP XII             June   10   500
    th
                                  50.000                     1979
9        ICP Mutual
           Fund        ICP XIII            June   10   500
                                  50.000                     1982

10th ICP Mutual        ICP XIV             June   10   500
                                  50.000                     1983
      Fund
                       ICP XV              June   10   500
     th
                                  50.000                     1985
11 ICP Mutual
    Fund               ICP XVI             June   10   500
                                  50.000                     1986

12th ICP Mutual         ICP                June   10   500
                                  50.000                     1988
      Fund              XVII
                                  50.000   June   10   500   1989
     th
13 ICP Mutual            ICP
    Fund                XVIII     50.000   June   10   500   1990
14th ICP Mutual    ICP XIX   50.000    June   10   500   1991
      Fund
                   ICP XX    100.000   June   10   500   1992
  th
15 ICP Mutual
    Fund           ICP XXI   200.000   June   10   500   1993


16th ICP Mutual     ICP      200.000   June   10   500   1994
      Fund          XXII
                             400.000   June   10   500   1994
17th ICP Mutual      ICP
                    XXIII    400.000   June   10   500   1995
      Fund
                             840.000   June   10   500   1980
18th ICP Mutual      ICP
      Fund          XXIV


19th ICP Mutual     ICP
      Fund          XXV

                   SEMF
20th ICP Mutual
      fund

21st ICP Mutual
      Fund

22nd ICP Mutual
      Fund

23rd ICP Mutual
      Fund

24rth ICP Mutual
      Fund

25th ICP Mutual
      Fund

  ICP SEMF
                          STATE ENTERPRISE MUTUAL FUNDS



State Enterprise Mutual Fund was floated in 1980 with a capital of Rs. 280 million. The portfolio
of ICP SEMF, which comprises was floated for providing benefits of pooled investment to
investors particularly overseas Pakistanis



The corporation enhanced the capital base of the SEMF, through issuance of right certificates to
the existing certificate-holders of the SEMF by 200 percent raising the capital of SEMF to Rs.
840.0 million. With this enhancement in capital, the aggregate capital of all the listed 26 ICP
mutual funds has soared to over Rs.3. 1 billion. ICP is the only fund manager whose funds under
management increased by over Rs.2 billion during the last 6 years.



During the year 1992-93, the corporation declared an enhanced dividend of 83% on SEMF, The
KSF in consideration for excellent performance by the ICP SEMF has been awarding the fund to
the top companies’ awards since 1 993.




Because of the depressed economic conditions in the country, the number of dividend
paying stock has declined. Despite these conditions, ICP has declared 25% dividend
on SEMF.
                                        ICP’S MUTUAL FUNDS

              MUTUAL   1993-94   1994-95    1995-96   1996-97   1997-98   1998-99

              FUNDS      %         %          %         %         %         %


    st                                                                       -
1 ICP Mutual             50        40         40        15        15
Fund
                                   50         35                            10
2
    nd
   ICP Mutual            55                             12        18
Fund
                                   25         35                            15
                         35                             13        13
3rd ICP Mutual
                                   50         90                            20
Fund                     40                             45        35
                                                                             -
                         60        55         25        10        10
4rth ICP Mutual
fund                                                                        20
                         60        70         50        33        25
5th ICP Mutual                                                              10
                         40        35         25        15        10
Fund
                                                                            35
                         65       100        100        50        30
6th ICP Mutual
                                                                            50
Fund                     65        80        100        45        80
7
    th
  ICP Mutual                                                                10
                         60        65         40        25        20
Fund
                                                                            15
8
    th
  ICP Mutual             40        70         40        25        18
Fund                                                                        15
                         65        70         35        30        30
    th
9 ICP Mutual
Fund                                                                        25
                         45        65         70        40        40

10th ICP Mutual                                                             10
                         30        40         25        20        18
Fund                                                                         -
                         25        30         15        12        15
         th                                                                  -
11 ICP Mutual
                                                 -
Fund              18   18   12.5   12.5   12.5
                                                 -
12th ICP Mutual   20   25   14     14     14
Fund                                             10
                                           -
                  18   16   17     10
13th ICP Mutual                                  10
                                          40
Fund              17   18   20     10
                                                 -
                                          18
14th ICP Mutual   18   10   20     10
                                                 -
Fund                                       -
                             -      -
                  16   13                        -
                                           -
15th ICP Mutual             10      -
                                                 -
                  16   15
Fund                                       -
                                    -
                             -                   -
                  -    -
                                           -
16th ICP Mutual              -
                                    -
                  -    -                         18
Fund                                       -
                                    -
                             8
                  -    -
  th
17 ICP Mutual                             25
                                   65
Fund                        100
                  65   60

18th ICP Mutual
Fund

19th ICP Mutual
Fund

20th ICP Mutual
fund

21st ICP Mutual
Fund

22nd ICP Mutual
Fund

23rd ICP Mutual
Fund
24rth ICP Mutual
Fund

25th ICP Mutual
Fund

ICP SEMF




    ICP’SMUTUAL FUNDS RATES OF DIVIDENDS
ICP distributes 90% of profit on mutual funds to its fund-holders / investors and on1y
10% is retained for expenses. ICP declared dividends on its mutual funds annually and
also declared interim dividends to its fund-holders .All fund-holders are receiving
handsome dividends which compare a very favorably with the rate of return of other
listed share.



The mutual funds managed by the corporation are a Source of regular income for the fund-holder
and increasing rates of dividends have made theses funds the mot attractive medium of pooled
investment in the country.



The corporation during the year ended June 30, 1 993 created a record by declaring the highest
ever dividend of 370% on its 12th mutual fund. The rates of dividends for 1992-93 ranged from
12% to 370%.



Despite unfavorable conditions on the stock market the rates of dividends for the year
I 996-97 were attractive. The overall return for the year I 996-97 ranged from 10% to
   65%. Moreover, despite bearish market to its fund–holders the interim dividend
                              ranged from 10% to 50%.




                                  PROJECT FINANCING
   Since in corporation in 1966, till June 30, 1994.ICP was also engaged in project
financing. The investment Corporation of Pakistan was providing financial assistance
     to sponsors for meeting their local currency requirements in establishment of
industrial projects. It had not only provided financial assistance for the establishment
   of new projects but also for balancing, modernization and replacement (BMR) of
                                    existing projects.



The three commercial banks (HBL, BALANCE and UBL and two privatized bank (ABL, MCB)
of Pakistan represented on the board of ICP are also locked in the Consortium financing lead by
ICP. So, the size of resources available at the disposal of ICP for project financing was very
large. The financial assistance for project financing was arrange through Term Finance
Certificates )TFC) while funds for purchase of Locally Manufactured Machinery (LMM) was
provided under state Bank of Pakistan’s sponsored scheme.



Since its inception, the total financial assistance (including underwriting) approved by
the corporation along with its consortium-members amounted to RS. 12.8 billion, of
which ICP’s commitments stood at RS. 5.0 billion. The financial assistance approved
by the corporation was providing to all-important sectors of the economy.



The corporation has stopped project financing temporarily since July 1994. After an
in-depth analysis of its activities and under the instruction of the government has
stopped providing financial assistance. And ICP has no more funds for financing
purposes. After July 1994, disbursements of loans have been made only in that cases,
which were approved before July 1994 and their disbursements were pending. In
1995-96, ICP has disbursed RS. 27.0 million for six applications and during the year
1996-97. ICP has disbursed an amount of RS. 4.0 million only for one project in
respect of locally manufactured machinery.



MODES OF FINANCIAL ASSISTANCE




           The financial assistance is provided through the following modes:
     1.   Short Term TFCs
     2.   Long Term TFCs
     3.   Financing of locally manufactured machinery
     4.   Equity investment
     5.   Underwriting cover




     1. Short Term FTCs




                 Short term TFCs are in locally currency.
                 The duration of these TFCs is about 3 years.
                 Short Term TFCs substitute a part of the equity to be raised from the public in
                  case of public limited companies to be quoted on the stock exchange.
                 At the time of project approval, implementation and trial run operations of a
                  project, some sponsors Prefer to finance part of the public portion of the equity
                  through bridging loans. These funds are usually disbursed after utilization of
                  entire sponsor’s equity through escrow account at the tail end of the
                  implementation of the project.
                 These TFCs are normally retired from the proceeds of the public issue. They can
                  also be retired out of the internal cash generation of the project or from sponsor’s
                  own resources.



2.   Long Term TFCs




         The duration of the long term TFCs is usually 7-1 years.

         Long term TFCs are also in local currency.

         Repayments of these TFCs is made in six monthly installments

     The funds can be used to meet local currency expenditures as well as import of foreign
machinery
    3.   Financing of Locally Manufactured Machinery




          It is a subsidized credit made available by the state bank of Pakistan.

          Its availability is contingent on the availability of funds from the state bank of Pakistan.

         The purpose of financing of locally manufactured machinery is the promotion of local
    engineering industry.



    4.   Equity Investment




      ICP may participate in the equity along with the promoters of a project. The
    contribution will be for a minority position.

          In equity investment, ICP become the shareholder of the company and receive profit on
    share from the company.

          ICP does not receive interest in case of equity investment.

          For example, if a project’s lost is ten lack and sponsors provide eight lack and for two
    lack they request to ICP that take the share of their company and become shareholder. If ICP
    accept their request then it take shares against two lacks and receives profit on it. After a
    particular time period. ICP can sell these shares in the market.



    5.   Underwriting Cover



    The sponsors, with a track record, normally prefer to go for public subscription at the
     implementation state of the project. Relatively new sponsors wait for the project to
     achieve a satisfactory level of operations before they approach the public. ICP may
               consider both the propositions and provide underwriting cover.
                                  TERM AND CONDITIONS FOR

                        PROJECT FINANCING & UNDERWRITING



 The company who wants to get financial / underwriting assistance from ICP, it has to
           provide all information and documents required by the ICP.



       1. The company has to provide the following particulars of all its directors and any other
          sponsoring share holders of the company:



i.              Full name, Address, NIC number and National tax number.

ii.             Percentage share holding in the proposed project.

iii.           Name and Address of Banks and Bank A/C number.

iv.            Detail of Technical and Academic qualifications.

v.              Detail of entrepreneurial experience of running another business and or industry.




       2. Give the justification that the directors / sponsors past experience will be helpful in
          running the proposed project.
       3. For each of the business / industrial concerns, provide the following information:



i.              Date of incorporation
ii.            Date of start of commercial production

iii.           Names of products, their uses and capacity,

iv.            Copies of audited / unaudited financial statements for the past 4 years.

v.          Statement of borrowings from other financial institutions and commercial banks
indicating:

        Principal amount of loan availed

        Nature of loan

        Date of disbursement

        Overdue showing the Principal and interest separately

        Amount of loan not yet fallen due.



4.     Project Description

Company has to give a detailed description of the proposed project covering the
following aspects:

i.              Name of products and their respective uses.

ii.            Annual production capacity at 100% efficiency.

iii.          Number of Days, the project will be able to operate in year and the required number
of shifts per day.

iv.            Attach copy of federal or provincial government’s permission for setting up the
project.

v.             Give location of land indicating:

        The name of Tehsil, District, Division and Province.

        Classify the project location as Urban or Rural.

        Give total area of land and its cost.
      Identify land development charges.

      Attach copies of land ownership documents.

vi.           Furnish details of the advantages that would be enjoyed by the project because of its
location, in term of:

      Communication

      Availability of labour, raw material power, water & gas

      Market

      Tax holiday

      Rebate in customs & excise duties.

vii.        State the amount of power, water & fuel that would be required annually.

viii.      Details of proposed building and civil works indicating the name of different sections
and departments, their respective covered areas, rates of construction applicable and total cost of
civil works.

ix.         Provide a comprehensive list of foreign machinery items required for the project.

x.           Provide a comprehensive list of locally manufactured machinery items required for
the project.



xi.




xii.       Incase the project proposes to install any second hand machinery item. Then
following particulars about the machinery be provided:




      Name of manufactures
       Country of origin

       Year of manufacture

       Remaining useful life

       Lost at which it has been acquired.




xiii.       Give a detailed description of the manufacturing process as well as process flow
diagram.

xiv.       Give details of engineering and technical fees, in foreign as well as local currency
being charged by the foreign/local machinery supplier.

xv.         Give an estimate of the time required to complete the project.

xvi.        Describe the environmental hazards that would be caused by setting up of the project.
State the arrangements proposed to be made for disposal of plant affluent.

xvii.     Please give the details of the details of the manner through which the sponsoring
Directors would be involved in efficient implementation and operation of the project.

xviii.   Give details of the project’s contribution to Pakistan’s gross national product (GNP)
and the Number of new employment opportunities that it will create.




5.    Marketing
Company has to provide information about the market conditions for its product, covering the
following points:



i.              Description of markets

ii.            Selection of customers and their location, needs and buying capacities.

iii.        Names and addresses of company producting similar products and their respective
capacities.

iv.            Names and address of up-coming similar industries and their respective capacities.

v.             Production within Pakistan during each of the last five years.

vi.            Imports during each of the last 5 years

vii.          Exports during each of the last 5 years

viii.         Local consumption during each of the past 5 years.

ix.            Estimated demand during each of the next 5 years.

x.             Description of proposed marketing channels and distribution arrangements.




       6. Company has to attach copies of the following documents:

        Memorandum and articles of association

        Certificate of incorporation.

        Certificate of commencement of business.

        WAPDA’s assuance for supply of power.

        Relevent Authorities assurance for supply of water, fuel and gas.
7.  Any company who requests to get financial assistance from ICP has to pay an appropriate
amount of processing charges (non-refundable) according to the following schedule:




       Financial Assistance Requested                       Processing Charges
       Upto RS. 5.000 million                               RS. 10,000/-

       From RS. 5.001 million to 10.000 million             RS. 15,000/-

       From RS. 10.001 million to 20.000 million            RS. 20,000/-

       From RS. 20.001 million to 50.000 million            RS. 25,000/-

       From RS. 50.001 million to 75.000 million            RS. 30,000/-

       From RS. 75.001 million to 100.000 million           RS. 35,000/-

       Over RS. 100.000 million                             RS. 50,000/-




       8. If Company wants to get loan for the expansion or BMR expansion or BMR of an
          existing project, then it has to provide following information.

i.              Date of incorporation.

ii.             Date of start of commercial production.

iii.           Names of products being presently produced and their uses.

iv.            Their classification under the industrial investment schedule.

v.             Their installed capacity and new capacity proposed to be added.

vi.          Capacity utilization in produced during the past 4 years and explain reasons for
under utilized capacity (if any)

vii.          Attach past four years balance sheets and profit & loss accounts and explain reason
of losses (if any)

viii.         Attach copy of memorandum & articles of association.

ix.            Statement of borrowings from other financial institutions and commercial banks.
x.              Detail of existing land building

xi.            Detail of existing machinery, its make and age.

xii.           Number of persons already employed and their salaries and wages.

xiii.      Existing requirements of water and gas and additional requirements of water and its
sources and gas.

xiv.        Detail of existing market channels and distribution arrangements being used for the
present line of products.




                   TIPS ON PROJECT FINANCING AND UNDERWRITING
                                   Procedure:
       1. Borrower submit an application on prescribed from alongwith prescribed processing fees
          (which is non-refundable) to the ICP.
       2. For the ICP technical committee, a preliminary examination of loan / underwriting is
          prepared. Meetings of this technical committee are held every week.
       3. Technical committee decides either to admit the case for detailed appraised or to reject
          the request.
       4. If the technical committee admit the case for detailed apprasal, sponsors are requested to
          provide additional information and deposit project examination fee of ½ of one percent of
          financing required.
       5. After receiving examination fee, technical committee get detail information from the
          company and prepare memorandum for MD / Executive committee / ICP board of
          directors for sanction of funds.
       6. If the project involves consortium financing then the memorandum is placed in ICP staff
          technical advisory committee.
       7. MD / Executive / ICP board of directors approve the memorandum.
       8. After receiving the commission and legal documentation fee from the company, ICP
          issue sanction letter.
               Commitment charges are charged at 1 ½ % per annum, payable on quarterly basis.
               The underwriting commission is charged at 2 ½ % for one time.
               The legal documentation fee is charges at ¼ of 1% for financial assistance and 1/8
                of 1% for underwriting cases.
       9. Sponsors have to accept the sanction letter within 15 days.
     10. After the acceptance of the sanction letter, the financing agreement is signed by the
         sponsors and ICP / ICP-led consortium members.
     11. ICP consultants evaluate the building civil work, machinery, land etc. All draft contracts
         agreements, performance bond etc. are approved by ICP consultants before execution.


Conditions Prior To Disbursement




Fulfillments of following conditions prior to disbursements are necessary:

a) An escrow account is open for the deposit of equity by the sponsors and funds to be
disbursed by ICP.

b)     Auditors certificate regarding utilization of equity by the sponsors, whenever applicable.

c)     Underwriting from a commercial bank for meeting working capital requirements.

d)     Satisfactory credit-reports from all banks/DFIs.

e)     Underwriting from relevant authorities to meet gas, electricity and water requirements.

f) Physical inspection of the project and inspection of books of accounts by ICP in order to
verify utilization of sponsor’s equity and their other investments in the project.




                                 Rules For Disbursements Of Funds



The important rules for disbursements of fund are given below:



a)  In case of LMM – financing, the disbursement is made to the manufacturers/ suppliers of
machinery directly.

b)     In case of TFC financing funds are deposited in the escrow account operated by

ICP.
                       SECURITY CONDITIONS FOR PROJECT FINANCING

     Major security conditions of ICP to secure its loan are:

     a) First mortgage on all the present and future movable and immoveable properties of the
     project / company.

     b)   First floating charge on other assets including current assets.

     c)   Pledge entire shares of the project sponsors with the ICP.

     d)   Deposit TFC as per arrangements of the trust deed.

     e) Deposit irrevocable general power of attorney in favour of ICP for each loan and financial
     assistance separately.

     f)   Promissory notes.



                               Other Conditions
a) Modify the memorandum and articles of association of the company where
  necessary.

     b) The management of the company has to obtain insurance policies from a first class
     insurance company approved by ICP.

     c) The management of the company has to obtain no objection certificate. “NOC” from the
     existing senior creditors.

     d)   The company can sell his share and assets after obtaining ICP’s approval.



     Operations Department Advice For The Borrower

a)     The borrower should first thoroughly understand ICP standard loan application
     form.
b) The borrower should meet the dealing officer and find out ICP’s procedure regarding
sanctions, disbursements and normal time involved in these activities.

c)   The borrower should fulfill ICP’s requirement of information, documents charges etc.

d)   The borrower should thoroughly read and understand the ICP’s sanction letter.




e)   The borrower should also find out from the dealing officers about the following:




     Timings of the deposit of various fees / charges etc.

     Issuance of ICP sanction letter.

     Escrow account opening, its operation etc.

     Pre-disbursement formalities.

     Security conditions etc.




                     RECOVERIES OF LOANS



  The Investment Corporation of ICP has stopped project financing since July 1994.
 After that the corporation stopped up its effort for recoveries of its outstanding loans
  and finances. A special task force has been constituted, monitoring department has
    been reorganized and the process of recovery has been decentralized. This has
    resulted in achieving a significant increase in recoveries. The corporation has
 recovered RS. 271.9 million in 1995-96 and RS. 360.5 million in 1996-97. So, this
           shows an increase of 32.6% in 1996-97 as compared to 1995-96.
During the 1996-97, a good number of stuck up either projects having large exposure
 have either been settled fully or have been rescheduled / restructured after receiving
substantial down payment form the borrower. This has increased the recovery of dues
   / overdue on the one end on the other, which caused very positive effect on the
                    financial statements ICP for the year 199697.



Recovery Of Loans In Default



Regarding loans in default, the state bank of Pakistan offered an incentive scheme to
loan defaulters on June 5, 1997. The objective of this incentive scheme is to retrieve
maximum possible rupee component in the shortest possible time for the revival of
economy.



Under the Incentive scheme, all the defaulters have been provided opportunity to
made full and final settlement of their outstanding liabilities by repayment and per
incentive provided i.e.




Period of default                           Incentives
i.          7 Years and above               Principal + 5% of the principal amount
ii.        3 Yeas or more but less than 7
years                                       Principal + 20% of the principal amount

iii.      One year or more but less than
3 years
                                            Principal + 40% of the principal amount
                                            (OR 75% of the accrued mark up
                      Investor Account Services

What is Central Depository System?
 Central Depository System is an electronic book entry system to record and transfer
securities (such as shares; TFCs etc) electronic book entry means that the securities do
  not physically change hands – the transfer of securities from one party’s account to
   another is completed electronically. Central Depository System is maintained by
                   Central Depository Company of Pakistan Limited.



What is The Difference Between Settlement and Trading?
Trading is the selling Trading is selling and buying securities through a stick broker,
  whereas settlement is the delivery of the securities bought and sold. The central
 depository system only settles securities electronically. In other words, you would
continue to trade through a broker but the delivery of securities will be made through
                           the Central Depository System.



Why was CDS needed?

The following problems prevailed in the old system:

 Lengthy delays in delivery, settlement and transfer of securities.

 Tedious procedure of verification of securities & transfer deeds.

 Considerable time involved in dispatching and issuing cash dividend and bonus securities.

 Serious problems associated with physical custody.

 Tedious procedures involved in pledging of physical securities.
      Central Depository System, by converting physical securities into electronic
      securities, has eliminated the risk of damaged, lost, forged and duplicate securities.
      The instantaneous delivery through electronic book entry has resulted in immediate
      transfer of ownership, which previously took almost 45 days. CDS has also reduced
      the cost of investors significantly.



      What is Investor Account Service (IAS)?




         Investor Account Service offered by Central Depository Company of Pakistan
      Limited allows investor to directly open and maintain accounts in Central Depository
      System for electronic settlement of securities. Earlier, to settle the securities through
        Central Depository System investor has to open client accounts (sub accounts) or
      group accounts with participants (brokers, financial institutions). Now with Investor
                 Account Service, investor can also have direct access to CDC.
                   What Are Benefits of Investor Account Service (IAS)?
      Operational Review
                                       Investor’s Scheme:
       The investor scheme was introduced in 1967 in Pakistan the corporation’s investor’s
       scheme has been very successful in fulfilling the objective of broadening the base of
          investment. In order to provide an incentive to small and medium investor for
      providing marginal loans. The credit facilities extended to investment account holders
       were provided at consessional rates in the ratio 3:1 in initial years and 2:1 thereafter.

              In 1980, ICP introduced two types of investment accounts, which are:
i.           Sharing account
ii.         Non-sharing accounts
      Since 1967, the corporation through this scheme attracted thousands of new investors
          to make investment in shares of listed companies. The numbers of investment
         accounts being maintained by the corporation are over 17000. Salaried persons,
        professionals and middle class businessmen have opened most of these accounts.
      The corporation has mobilized sizeable funds for investment on the stock market
       through its investor’s scheme and the portfolio under the ICP investors scheme
                   amounted to over RS. 1 billion at cost on June 30, 1997.



                                FINANCING OPERATIONS
     The corporation was also providing financial assistance to sponsors for meeting their
       local currency requirements in establishment of industrial projects. The financial
    assistance for project financing was arranged through term finance certificates (TFCs)
     while funds for purchase of locally manufactured machinery (LMM) were provided
                       under state bank of Pakistan’s sponsored scheme.

       The total financial assistance approved by ICP along with consortium members
       amounted to RS. 12.8 billion, of which ICP’S commitments stood at 5.0 billion
                                           including:

     RS. 2.3 billion against share issues
     RS. 0.7 billion for PTCs / TFCs
     RS. 0.5 billion for debentures
     RS. 1.5 billion for financing of purchase of locally manufactured machinery.

     The financial assistance approved by the corporation was provided to all-important
    sectors of the economy. But since July 1994 the corporation after in depth analysis of
        its activities and under the instructions of the government has stopped project
                                            financing.

                                        UNDERWRITING
      The corporation through its underwriting operations has significantly contributed
      towards encouraging sponsors of offer their shares to the public for subscriptions
      particularly in its initial years when new sponsors were finding it difficult to raise
    money from the market. The corporation till June 30, 1997 has approved applications
        of RS. 4.6 billion for underwriting of public issues of shares of which ICP’S
                          commitment amounted to over RS. 2.8 billion.
      More then 100 companies have been listed on the stock exchanges in the country
     through ICP’S underwriting support, thus contributing in increasing the number of
                                              listings.
    During the year 1996-97 the corporation received only one application of RS. 560.0
     million for underwriting compared to 11 applications for an amount of RS. 1146.7
     million received in the preceding year. The corporation approved an application of
       RS. 560.00 million for underwriting as against 8 applications approved in the
    preceding year. The decline in the requests for underwriting assistance in 1996-97 is
                           because of the depressed stock market.

                                  ICP MUTUAL FUNDS

    The ICP introduced closed end mutual fund in Pakistan. These funds, which provide
        excellent opportunities for pooled investment, have been very successful in
                           broadening the base of investments.

    First ICP mutual fund was floated in June 1967. So far the corporation has floated 26
    closed-end mutual funds including one state enterprise mutual fund (SEMF). Despite
      unfavorable stock market conditions for the last several years, the corporation has
    declared dividend on its funds, which voiced from 10-80 percent. The overall return
                  for the year 1996-97 ranged from 10 percent to 65 percent.
      The overall performance of ICP mutual funds has been excellent compared to the
       excellent rates of dividend payments on mutual funds in previous years. ICP has
         earned a number of awards and has received KSE top companies awards for
     10 funds in 1993
     13 funds in 1994
     13 funds in 1995

                          TERM DEPOSIT ACCOUNTS’ SCHEME
    The corporation has also introduced term deposit account ensures regular income with
    handsome rates of profit. The minimum deposit for opening the term deposit account
       is RS. 50,000. The total deposit mobilized under this scheme stood at RS. 773.7
                                     million on June 30, 1997.
     The corporation accepts deposits for a period of one year, to a maximum period of
        five years at different rates of profit. The finds of the term deposit accounts are
      invested only under Islamic modes of financing. The profit earned and distributed
                     would be completely free from the element of interest.
                                INVESTMENT PORTFOLIO
               The investment portfolio managed by the corporation consist of:
      Shares acquired through underwriting take-ups
      Shares purchased from the market
       The portfolio is maintained in such a manner that it fulfils the twin objectives of
     providing strength to the stock market and become a major source of income for the
      corporation. Unfortunately, the corporation’s income from capital gains was badly
                     affected due to bearish conditions on the stock market.
     The income from capital gains was Rs. 18.8 million only in 1996-97 as compared to
      RS. 410.4 million in the preceding year. So, the profitability of the corporation in
          1996-97 has been badly affected and the investment portfolio has suffered
                                          depreciation.
     The total investment in the portfolio in listed shares and government bonds stood at
       RS. 2.8 billion on June 30, 1997. The major holdings in the portfolio were in the
                                            shares of:
      Mutual funds
      Fuel & energy
      Federal investment bonds (FIBs)
      Cotton textiles
      Banks
      Financial institutions
      Chemicals & pharmaceuticals group
    These sectors together accounted over 79 percent of the total investments on June 30,
                                              1997.
    The purchases and sales of shares for ICP’S investment portfolio mutual funds and on
      behalf of investment accountholders have been contributing significantly towards
       maintaining activity on the stock market. But ICP’S share in transactions on the
        market remained around one percent of the total turnover on the Karachi stock
                                      exchange in 1996-97.

                              DISBURSEMENTS OF LOANS
       The corporation has stopped project financing since July 1994 due to depressed
     market conditions and due to instructions of government to stop project financing.
    After the July 1994, the disbursements are being made in cases, which were approved
                                      before July 1994.
     In 1995-96 corporation has disbursed an amount of RS. 27.0 million for six
applications. In 1996-97 corporation has disbursed an amount of RS. 4.0 million only
            for one project in respect of locally manufactured machinery.

                  RECOVERIES OF OUTSTANDING LOANS
     The corporation stepped up its efforts for recoveries of its outstanding loans /
  finances. A special task force has been constituted, reorganized and the process of
recovery has been decentralized. This has resulted in achieving a significant increase
 in recoveries, which amounted RS. 360.5 million compared to RS. 271.9 million in
         1995-96. This shows an increase of 32.6% over the preceding year.

             PRINCIPAL GUARANTEED INVESTMENT SCHEME
ICP has played a pioneering role by launching this scheme for the investors in
Pakistan. This scheme was for the medium size investor. This scheme was launched
on the 5th August 1993 and is popularly known as “PRISM 96” The subscription was
closed on November 30, 1993.

                          MAIN FEATURES OF SCHEME
         Minimum investment                            RS. 200,000/-
           Extent of risk                           Principal guaranteed
         Duration of scheme                              Three years
          Expected return                 In the range of 15% and 25% per annum


            Loan facilities              Subscriber will be entitled to avail a loan
                                          against his investment at 30% margin at
                                          prevailing market rates of mark-up to be
                                        announced by ICP on quarterly basis. If the
                                         rate of ICP market-up is not acceptable to
                                           subscriber then he shall be free to avail
                                          loan from any other bank on the basis of
                                          guarantee issued by ICP to the extent of
                                           70% of the principal amount invested.


                                         The principal amount invested could also
                                         be used as collateral for projects both in
                                               ICP as well as any other institution.
                  Collateral
                                             Withdrawal facilities would be available
                                               only after completion of one year.


             Withdrawal facilities



     The final account of the scheme will be prepared on November 30, 1996 when the
     principal along with profit earned on the investment will be distributed among the
                                          investors.
         This scheme was closed by the ICP because of crisis in the stock market.

                            CENTRAL DEPOSITORY SYSTEM
                                        What is CDS?
    Central Depository System (CDS) managed by the CDC, is an electronic book entry
    system which records all securities transactions without any physical movement of
     certificates or transfer deeds thus obviating the need for counting verification and
                            transportation of countless certificates.

     The centre is equipped with the most modern computers connected to CDS network
    through telephones and modems. A team of highly skilled and dedicated professionals
               is responsible for performing operational activities at the center

                                      ICP AND CDS
    ICP has the honor to be among the sponsors of Central Depository Company (CDC)
        of Pakistan and led in the enlistment of its 26 mutual funds with the CDC.

             BENEFITS OF ICP’S CDS BASED CUSTODIAL SERVICE
          ICP’S CDS based custodial services center offers the following benefits:
     No transfer deeds required, thus no transfer fee
     No physical handling of stocks
     Lower charge as compared to open market rates.
     No procedural bottlenecks
      Provide timely, effective custodial service to institution and retail level investors
    from Pakistan and abroad.
    PART – X

    CONCLUSION

    AND

    RECOMMENDATIONS

    CONCLUSIONS



                         UNNECESSARY CENTRALIZATION
     There is unnecessary centralization of authority with the head office. Even branch
        managers are also helpless to decide upon ordinary matters. Because of this
      centralization, ordinary matters take a long time to be solved. So, I suggest that
    AVP/manager of branch to come out of the responsibilities so that he can perform his
                                      duties efficiently.

                           LACK OF PROFESSIONAL SKILL
    There is lack of professional skill in the staff of ICP. So, ICP should arrange training
      programs for their employees about their jobs. ICP should also arrange different
       refresher courses about the investment. Management and finance for its staff.

                            OLD RULES AND REGULATIONS
          The staffs of ICP Lahore branch are working according to the old rules and
     regulations. My suggestion is that ICP should change its infrastructure and rules and
                         regulations according to current market trends.
      ICP has no brokerage house in the stock market. So it cannot play major role in
    changing the market trend.
      Selection of most of the employees of ICP Lahore branch is not based on merit.
      Most of the employees of ICP Lahore branch know only about their branch work.
    They have no knowledge about other operations of ICP that are performed in the Head
    Office Karachi.
      Project Financing is the major function of ICP but ICP has stopped it because of
    the lack of funds.
     ICP Lahore branch is not taking the advantages of computer technology.
     ICP is not using advertising campaign to introduce its products in the market.

                                  RECOMMENDATIONS

    As ICP has a large share in stock market it has ability to change market trends through
        its own portfolio. So, it should be given brokerage house in the stock market.

                             SELECTION OF EMPLOYEES
    Selection of employees of ICP should be based on merits and certain qualification. So,
                             that right person fills the right job.

                         REVISION OF INVESTOR’S SCHEME
       ICP’S investor scheme is not going well. So, I suggest that ICP should revise its
                investor scheme with good incentives to investor’s scheme.

                          RE-CONTINUE FINANCING SCHEME
       Before 1994, financing was a profitable operation of ICP. But the corporation has
    stopped project financing since July 1994 because state bank of Pakistan is not read to
     provide further credit line to ICP. The suggestion is that ICP needs more investments
     and funds to survive. So SBP should provide credit line to ICP for investment in new
                                             projects.

                         EMPLOYEES INCENTIVE PLANS
      The corporation should provide more opportunities to their employees to rise.
    Employees should be given credit and incentives according to their performance and
                                        abilities.

     Management of ICP should arrange different lectures for its staff from time to time
                      about current market trends and situations.

    Management of ICP should adopt this policy hat all the officers should be give chance
                         to work in all departments of a branch.

                              COMPUTER BASED SYSTEM
      Although ICP Lahore branch has been introduced computer but still most work is
    done manually. The suggestion is that most work should be done on computer so there
                              will no / few chance of errors.

                        INTRODUCTION OF NEW PRODUCTS
     ICP should introduce new products, ore mutual funds to avail the low price market
     opportunities and mobilize general public to make investment through mutual funds
                                    and other products.

                                       ADVERTISING
      There is a great need of large advertising and publicity campaign to attract more
    people to invest in ICP and it will help ICP in attaining its objectives and perform its
                                           functions.

    Unnecessary centralization of ICP branches should remove so that to some extent they
          can work independently and it will result to increase their performance.

                                  WORK DONE IN ICP
     The details of the new work that I have done in ICP during my internship period are
                                         given below:



                               INVESTMENT DEPARTMENT
    I started my internship from investment department. During my period in the sharing
    department, I have posted sales, purchase, debit and credit vouchers in their particular
        registers. I have also prepared list for sale and purchase of share from different
                                        sharing accounts.

                          ADMINISTRATION DEPARTMENT
      In administration department, I have prepared different drafts and some vouchers
                             about payment and receipt of cash.

                             Transaction And Shares Department
                        Work done by me in T&S department is about:
     Posting of sale and purchase orders
     Posting of credit and debit vouchers
     Posting of confirmation and cancellation of purchase and sale order in their
    particular registers.

                                      Accounts Department
                     I did a lot of work in account department including:
    Posting of debit credit vouchers and petty cash vouchers in their particular
  registers.
    Prepare cheques
    Posting of cheques received and issued in the cheque received and issued registers.
    Prepare different debit and credit vouchers
    Filing of vouchers
    Numbering of vouchers
    Prepare list of salaries of the staff of ICP
    From salary, deduct monthly installments for house allowance. Vehicle allowance
  rain allowance, emergency allowance and prepare list of all installments.
    Reconciliation of the bank statements and the branch books.
    Prepare bonus list for staff.

				
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