Premium on issue of units 281346 Unappropriated profit 169977 Total unit

Premium on issue of units 281346 unappropriated

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Premium on issue of units 281,346 Unappropriated profit 169,977 Total unit holders’ fund 22,688,323 Liabilities Non-current liabilities Formation costs payable to REIT management company 215,087 Security deposits 108,036 Total non-current liabilities 323,123 Current liabilities Payable to REIT management company 58,259 Security deposits 44,543 Accrued expenses and other liabilities 104,254 Total current liabilities 207,056 Total Unit Holders Fund and Liabilities 23,218,502 ( PKR ) Net assets value per unit 10.20 (Exhibit 2 Continued)
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142 Asian Journal of Management Cases 15(2) Statement of Changes in Unit Holders’ Fund Statement of Changes in Unit Holders’ Fund For the period from 20 January 2015 to 30 June 2015 Units Reserves Sub total Unitholders’ Fund Premium on issue of units Unappropriated profit (PKR in ‘000) Transactions with owners Issue of units 22,237,000 22,237,000 Premium received on units subscription 555,925 555,925 555,925 Formation costs (274,579) – (274,579) (274,579) 22,237,000 281,346 281,346 22,518,346 Total comprehensive income for the period Profit for the period 169,977 169,977 169,977 Other comprehensive income Total comprehensive income for the period 169,977 169,977 169,977 Balance at 30 June 2015 22,237,000 281,346 169,977 451,323 22,688,323 Cash Flow Statement For the period from 20 January 2015 to 30 June 2015 2015 (PKR in ‘000) CASH FLOW FROM OPERATING ACTIVITIES Profit before tax 169,977 Adjustments for: Mark-up on bank deposit (98) 169,879 Increase in current assets —Rent receivables (34,514) —Advances and other receivables (16,797) Increase in current liabilities —Payable to the REIT management company 6,222 —Security deposits 44,543 —Accrued expenses and other payables 104,254 Cash generated from operations 273,587 Taxes paid (17,376) Formation costs paid (7,455) Security deposits received 108,036 (Exhibit 2 Continued) (Exhibit 2 Continued)
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Seyyed et al. 143 Profit and Loss Account For the period from 20 January 2015 to 30 June 2015 2015 (PKR in ‘000) Income Rental income 193,662 Marketing income 6,282 199,944 Administration and operating expenses (18,619) 181,325 Other income, mark-up on bank deposits 98 181,423 Management fee (5,300) Sindh Sales Tax on management fee (922) Federal Excise Duty on management fee (848) Trustee fee (907) Provision for Workers Welfare Fund (3,469) (11,446) Profit before taxation 169,977 Taxation 169,977 ( PKR ) Earnings per unit—Basic and diluted 0.08 Source: Annual Report of DCR. Net cash generated from operations 356,792 CASH FLOWS FROM INVESTING ACTIVITIES Payment for investment property (5,559,250) Mark-up received 1 Net cash (used in) investing activities (5,559,249) CASH FLOW FROM FINANCING ACTIVITIES Net cash flow from financing activities, Proceeds from issuance of units 6,115,175 Cash and cash equivalents at end of the period 912,718 (Exhibit 2 Continued)
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144 Asian Journal of Management Cases 15(2) Exhibit 3. Valuation of REITs The use of traditional valuation metrics was not appropriate for the valuation of REITs. There were; however, two main approaches used in the industry for valuation of REITs: (1) Funds from Operations (FFO) and (2) Net Asset Value (NAV) based approach.
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