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Assignment on NIT (National Investment Trust Limited)
by Commerce Solutions in ,

NITL was incorporated as an unquoted public limited company in 1962. The principal activity of the company is to manage NI(U)T, an open end mutual fund. The fund is the largest open-end mutual fund in Pakistan, with investments in approximately 600 of the 706 listed Pakistani Companies. NIT's portfolio has over 90 percent correlation with the Karachi Stock Exchange all Share Index and is as such the nearest proxy to an Index fund in Pakistan. NIT is valued at approximately Rs. 26 billion. The fund has a 93% weighting in equities and 7% weighting in fixed income securities. NIT's objective is to provide its Unit-holders with a balance between their regular income needs and long-term capital appreciation. NITL has approximately 62,000 unit holders and over 19 branches and 2 booths across Pakistan.

NI(U)T's unique attraction is that it provides investors with a one window entry to Pakistan's equity markets which at times can be illiquid and volatile. Pakistan, like most developing markets, has only a handful of stocks with the market capitalization and liquidity which makes them feasible additions to an international investment portfolio. However, these stocks are not representative of the economy as a whole and ignore the usual engine of growth for developing economies- the middle to small sized companies which can grow at multiples of, rather than percentage points over, last year's performance. Identifying these companies is hard enough, but even if one could identify them, trading in their shares is likely to be so illiquid as to make adding them to your portfolio a considerable challenge.

In this environment, NI(U)T offers an unparalleled avenue for investing in corporate Pakistan:

  • Established since 1962.

  • Historical entitlement to a preferential allocation of shares in companies to be listed (withdrawn as per 1995).

  • Investments in 600 out of a total of 706 listed companies .

  • Track record of regular dividend payments.

  • The portfolio accounts for nearly 4 % of the stock market and nearly 80 % of all domestic mutual funds.

  • Offers investors ready and easy access to Pakistan's capital market.
Compounding this lack of ready access is the fact that there are only a handful of offshore funds dedicated to investing in Pakistan. Additionally, given their size they also do not provide the investor with a wide enough exposure to the currently un-fancied, but potentially most lucrative, medium sized and smaller companies. The fund has also significant strategic holdings in some of Pakistan's best-managed companies and in major privatization transactions e.g. Pakistan State Oil, Sui Northern, Sui Southern, Karachi Electric Supply Corporation, Pakistan Tele Communication Limited etc. These companies comprise the backbone of Pakistan's economy.
In 1998, NITL embarked on a major restructuring program, which included induction of senior professional management and modern asset management techniques. The other major step taken by the company includes its proactive role in corporate governance. Each investment decision is made within guidelines provided by NITL's investment committee. The objective of the team - management approach is to safeguard the fund from over reliance on any individual and to ensure transparency and rigorous evaluation of investment decisions.
'NIT mainly invests in listed equities. It suffered from low unit price in the past due to persistent bearish sentiments prevailing in equities market. However, during these years efforts were made for internal restructuring. NIT nominees played an active and effective role on the boards of directors of those companies — wherever the Fund had made substantial investment," said Mehdi.
The return from investment in stock market comprise of two components 1) capital gain/loss resulting from appreciation/drop in stock price and 2) dividend paid by companies to their shareholders. NIT projects a 19 per cent return to investors investing in the stock market either directly or by investing in NIT Units for the long-term (more than 5 years).
Mission Statement: Our Core Values

We are active and resourceful in developing proactive investment strategies for our shareholders. We are generous with our skills, tapping our collective initiative and creativity to provide financial solutions.

We are committed to understanding our shareholders' needs to generate the potential for the most profitable returns. We believe honest communications and respect go far in creating long-term, trusting relationships.
We are confident in our abilities, proud of what we do. It's the kind of certainty born of experience, training and knowledge; the kind that allows us to take calculated risks and reap the many results.
Mission statement Components:

The company's mission statement clearly specifies who will be the customers.

The company wants to work in safe and cooperative environment with safety for there customers as well.

The company focus and in search of professional employees how are focused on the tasks and encourage them with rewards and job appraisals.

Company wants to maintain there grip in the market and give no space for others.

Concern for survival, growth, and profitability:
Company wants creativity and growth effectiveness in the economy to survive in current environment and to make profit.

Mission statement specifies clearly that the company will deal in all aspects of petroleum products.


The use of technology must be the focused criteria of the     company.

Vision Statement
We are collaborative, working together as an efficient, dynamic team. Individually, each member of Desert Capital REIT is a skilled practitioner. Each challenges the others to deliver exceptional service. As a result, we stand apart from the rest in the real estate investment field.
NIT Objective

The core objective of NIT is to maximize returns for Unit holders, provide a regular stream of current income through dividends, while long term growth is achieved by diversified portfolio management and investments into growth and high yielding securities.

Shareholders of National Investment Trust Limited. The GOP presently owns 8.33% of NITL's shares directly and 50% shares indirectly through government controlled entities. 8.33% shares is owned by each PICIC and MCB while 25% of NITL shares are held by three industrialists in equal proportions. The following is a list of NITL's shareholders.

1.National Bank of Pakistan.

2.Habib Bank Limited
3United Bank Limited
4.Muslim Commercial Bank
5.Pakistan Industrial Credit & Investment Corporation
6.Industrial Development Bank of Pakistan
7.Investment Corporation of Pakistan
8.Pakistan Insurance Corporation
9.Government of Pakistan
10.Seat held by late Mr.Ahmed Dawood is vacant
11.Mr. Abdul Hamid Adamjee
12.Mian Tajammal Husain
The National Investment (Unit) Trust is Pakistan's largest and oldest Mutual Fund, having approximately 52,000 unit holders. NIT's distribution network comprises of 19 NIT branches, various Authorized bank branches all over Pakistan and Arab Emirates Investment Bank (AEIB) in Dubai(UAE). The Trust constituted under the Trust Deed dated 12th November 1962, executed between National Investment Trust Ltd (NITL) as Management Company and National Banks of Pakistan as Trustee.

About NIT Unit

NIT Units are issued in the name of the investor against the Investment. Units are issued in the form of physical Unit certificates, which are available in various denominations. NIT Units can be purchased/redeemed from NIT Branch's or authorized banks nationwide and Arab Emirates Investment Bank (AEIB) in Dubai(UAE), under forward day pricing system , except during suspension period of Sale and Repurchase or book closure .
To open an account with NIT, simply walk into any of NIT's Branch or Authorized bank, fill out the application form i.e., NIT-A, deposit cash/cheque*/pay order/demand draft and your account will be opened immediately. The minimum amount of investment is Rs.5,000 only.






Corporate Governance

The role that Corporate Governance has assumed over the years internationally with respect to establishing best practices in the corporate sector has also been reflected in our endeavors to strengthen the role of non-executive directors in the investor companies. We have 192 directorships in almost all the important sectors of the economy. The effective monitoring and a positive contribution on the respective Board of Directors by our nominees also created a conducive environment for improved governance in the investor companies. An effective role by our nominee directors needs continuous reinforcement of training and enhanced awareness levels. NIT organized a number of workshops/seminars to debate and discuss the issues pertinent to Investor Companies particularly with reference to the role of non-executive directors and the Code of Corporate Governance.

  • Mr. Muhammad Nawaz Tishna
Chairman & MD


  • Mr. Zahid Hussain
DMD & Head of Marketing


  • Mr. Manzoor Ahmed
SEVP & Head of Asset Management


  • Mr. Firasat Ali
Company Secretary & Head of Corporate Governance & Corporate Affairs


  • Mr. Anees Wahab Zuberi
Head of Internal Control, Audit & Compliance


  • Mr. Shahid Anwar
Head of Personnel


  • Mr. Aamir Amin
Chief Financial Officer / Head of Finance


Chairman & Managing Director


  • Abdul Hamid Adamjee Jamal Nasim
Adamjee Foundation Industrial Development Bank Limited


  • Mian Tajammal Hussain, Muhammad Iqbal Hussain
Industrialist Government of Pakistan


  • Syed Ali Raza Tariq Iqbal Khan
National Bank of Pakistan Industrial Development Bank Limited (formerly ICP)


  • Mian Raza Mansha Mrs. Rukhsana Saleem
MCB Bank Ltd. Pakistan Reinsurance Co. Ltd.

 Trustee - National Bank of Pakistan

National Bank of Pakistan maintains its position as Pakistan's premier bank determined to set higher standards of achievements. It is the major business partner for the Government of Pakistan with special emphasis on fostering Pakistan's economic growth through aggressive and balanced lending policies, technologically oriented products and services offered through its large network of branches locally and internationally.

National Bank of Pakistan has its Head Office in Karachi, Pakistan. It has over 1,200 branches throughout Pakistan. The bank provides both commercial and public sector banking services with the vision to be the pre-eminent financial institution in Pakistan and achieve market recognition both in the quality and delivery of service as well as the range of product offering.

Profile of Investment Manager

National Investment Trust Ltd. (NITL) is the first Asset Management Company of Pakistan, formed in 1962.NITL manages the largest fund in the country i.e. National Investment (Unit) Trust with approximately Rs. 84 Billion assets under management (39.43 billion for LOC and 44.35 billion for Non-LOC funds) with 19 NIT branches spread across the country. The Board of Directors of NITL representing shareholders are mainly from leading financial institutions in addition to a representative of Govt. of Pakistan. The company has been assigned an asset manager rating of "AM2-" by Pakistan Credit Rating Agency (PACRA), which denotes strong capacity to manage the risks inherent in asset management and the asset manager meets high investment management industry standards and benchmarks.

Fund Performance Review

The month of May proved to be one of the worst performing months for Pakistan's stock market where KSE-100 index received a heavy battering of 19.80% by falling from the index level of 15,121 to 12,131 points primarily due the current political situation, weak economic indicators and apprehensions regarding the budgetary measures which eroded the confidence of the investors. Downgrading of Pakistan's sovereign ratings by S&P and Moody's further dampened the sentiments of the market. The market witnessed a major plunge in the second half of the month when SBP came with the tight monetary measures by increasing the Discount Rate by 150bps to 12%, CRR and SLR by 100bps both to 9% and 19% respectively. The SBP also directed the commercial banks to offer minimum of 5% return on PLS accounts.

However during this difficult time NIT acted prudently to manage the portfolio. The NAV of your Fund dropped by 16% in the month and outperformed the benchmark KSE-100 index by 4% which went down by 19.80%. During the year (July 07 to May 08) KSE-100 index declined by 11.92 % whereas NAV of your Fund went down by 6.25% showing a resilient out performance of 5.67%.

Going forward we are hopeful that market may witness some recovery once the political uncertainty comes to an end and some improvement is seen on the economic front after the forthcoming budget. Your Fund Manager will continue to optimize the portfolio through investing in those stocks where the valuations are reasonably attractive with a long term view.
Why invest through NIT?
a) Professional Management

To modernize and better manage its affairs, the Management Company has hired a group of professionals including MBAs, Chartered Accountants and a Doctorate in Finance (to head Asset Management). This will enable NIT to make financial-research driven asset allocation and selection decision to better manages your money and keeps control over its assets and liabilities.
b) Diversification

Nit offers the diversification advantage being invested in 630 companies so that you avoid putting all your eggs in one basket. Due to NIT's large size, NIT gets better rates than an ordinary individual in brokerage.
c) Convenience

NIT makes investing simple, accessible and affordable.
Why Investing through NIT is preferable
The two main options to invest in financial assets are equity (stock market investment) and debt (bank deposits or government saving schemes). Investing in stock market carries more risk; however, it is also more rewarding over the long run.
Fact Sheet
Fund Size Rs.101 Billion (As of 30th June 2007)
Listing Karachi Stock Exchange 
Custodian & Trustee National Bank of Pakistan 
Type Open-End Mutual Fund 
Asset Allocation Primarily Stock Market 
Front-End Load 2.5% 
Back-End Load 1%  
Management Fee 1%  
Minimum SubscriptionRs.5,000 
Investment Objective Income generation, Capital Preservation and Growth 

A mutual fund is an institution established with the intention of investing a pool of funds in various types of Securities for the benefit of investors. A small investor is unable to diversify his portfolio of funds simply because of high investment required for diversification, so a mutual fund provides a means of diversification of investment to small investors. Initially a mutual fund collects the funds from small investors, and when sufficient funds are gathered and then they are invested in the Securities of different types, thus diversifying the portfolio.

A mutual fund is managed by a management company. The management company is a bank of human resources, considered to be professionally qualified personnel. The portfolio of mutual fund is managed by a "Portfolio Manager", whose responsibility is to be invested in, and satisfy the desire of the investors. While selecting the securities for investment, these managers analyze economic conditions, industry trends, government regulations and their impact on the stocks, and forecasts for the specific stocks to the project the future outcome generated by the companies. As we all know that the economic and business condition do not remain constant, so these managers also revise their portfolio with the passage of time, as the circumstances demand.

The Concept of Mutual Funds

The concept is very simple, small investors invest their money into a common pool or fund and hand over the investment decision to fund manager/portfolio manager. This is expected to have several advantages for the small investors: no more searching for good buys or relying on the neighborhood sub-broker for advice or even anxiously waiting for the allotment. All this is taken care of by the cumulative bargaining power of the fund, which has trained professionals managing it.
Everyday, the fund manager/portfolio manager counts up the value of all fund's holding, figures out how many shares have been purchased by shareholders, and then calculates the Net Asset Value (NAV) of the mutual fund, the price of a single share of the fund on that day. If you want to buy shares, you just send the manager your money, and they will issue new shares for you at the most recent price.
If the fund manager is doing a good job, the NAV of the fund will usually get bigger, and your shares will be worth more.
Types of Mutual Funds

There are two types of mutual funds, which are:
• Open-end mutual funds.
• Closed-end mutual funds.
Open-end Mutual Fund:
Open-end mutual funds are those where subscription and redemption of shares are allowed on a continuous basis. The price at which the shares of open-end funds offered for subscription and redemption is determined by the NAV after adjusting for any sales load or redemption fee.
Closed-end Mutual Fund:
Closed-end mutual funds are those where the shares are initially offered to the public and are then traded in the secondary market. The trading usually occurs at a slight discount to the NAV. Over a period of time, the mutual fund managers have developed a variety of investment products to cater the requirement of investors, having different needs. These include:

• Growth
• Balanced
• Income (Money Market)
• Equity
Growth Funds

The "growth funds" offer potential for appreciation in share value, while the current income may be low. The fluctuation in share price may also be high. Such funds invest in stocks and have tendency to outperform other funds and other modes of savings over a period of time.

Balanced Funds

The "growth and income" funds or "balanced funds", offer prospects of both moderate appreciation in share value as well as current income. The fluctuation in share price may be low. Such funds invest in stocks, corporate debts and Government paper.
Income Funds

The "bond fund" or "income funds" offer good current income but very little potential for growth. Such funds invest in government paper, bonds issued by municipal or local bodies, corporate debts and in stocks of utility companies, offering regular return.

Equity fund

The "Equity Fund" consists mainly of stock investments is the most common type of mutual fund. Often equity funds focus investments on particular strategies and certain types of issuers. The main objective for this fund is to participate fully in the growth of the economy.
Sources of Profit Generation

A mutual fund can generate profits from three different sources, which are:

• Dividend

• Capital Gains
• Appreciation of share price

Mutual funds generate income from dividends received from other joint stock companies whose shares the fund holds. A mutual fund uses this dividend income to distribute dividend to its stock holders.

Capital Gains:
As discussed earlier, the portfolio manager changes the portfolio of the fund with the passage of time and also with the changes in the economic and business conditions. So due to the sale and purchase of shares, the mutual fund generates capital from the sales/purchase of stocks. The capital gain generated by the mutual fund is also used to pay dividends to the investors of the fund.
Appreciation of Share Price:

Mutual funds also increases the wealth/investment of their shareholder through appreciation of share price of the mutual fund. For example, if the subscription price of a mutual fund is Rs.11.00, and after a period of seven months the price goes up to Rs. 18.00, thus the investor gets a profit of Rs. 7.00 if he sells the mutual fund shares in the market.

Advantages of Mutual Funds

• Mutual Funds substantially lower the investment risk of small investors through diversification in which funds are spread out into various sectors, companies, securities as well as entirely different markets. It is always the objective of a fund manager to maximize a fund's return for a given level of risk, however the dangers of "over-diversification" are always prevalent which would inevitably lead to reduced return on the portfolio.
• Mutual Funds mobilize the saving of small investors and channel them into lucrative investment opportunities. As a result, mutual funds add liquidity to the market. Moreover, given that the funds are long term investment vehicles, they reduce market volatility by offering support to scrip prices.
• Mutual Funds provide smaller investors access to the whole market which individually would be difficult to achieve.
• The investors save a great deal in transaction cost given that he has access to a large number of securities by purchasing a single share of the mutual fund.

• The investors can pick and choose a mutual fund to match his or her particular needs.

• Income is tax exempted.
Disadvantages of Mutual Funds

As such as there is no major disadvantage attached to the mutual funds. However, the possible disadvantages could be:
• Economic and Business Conditions: As the business and economic conditions do not remain constant, the mutual fund may face some difficulties in the future. Especially if the manager does not shuffle the investment portfolio with the passage of time, or some other unforeseen disaster/event changes the investment scenario.

• Portfolio Managed by Managers: Portfolio of a mutual fund is managed by portfolio managers due to which the investor has no say in the affairs of a mutual fund.

Financial Analysis of the Company
Asset Allocation

Net Asset (Rs in Billion - As of 30th June)


Dividend History (Amount in PKR/Unit.)

Company Chart 

Financial Highlights


Share Capital 
General Reserve 
Shareholders Equity 
Operating Fixed Assets
Long Term Investment 
Gross Income 
Profit/(Loss)before taxation
Value of funds under management(NI(U)T) 
NAV/Unit (Ex-Div) 









NIT Financial Highlights 2002 – 07

Financial Performance of NIT

HY DEC 07     HYDEC06
(Rs. Million)     (Rs. Million)     Change

Net Income*                     2,339         1,649         42%

Capital Gains                      475          315         51%

Dividend Income                  1,921         1,707         13%

Unit holders' Fund                 98,152      71,102         38%

NAV (Rs. per Unit)                  60.42         45.33         33%

Earning Per Unit (Rs.)              1.44         1.05         37%

Transactions in shares

Purchases                     6,658         4,357         53%

Sales                          4,425         5,288      (16)%

Sale of Units (Ex. CIP)              10,479         2,091      401%

  • inclusive of capital gains and dividend income but excluding unrealized gains.


Performance of NIT
Historical performance

Over the last twenty-five years the average return on bank deposits has been 9% on government savings schemes 14% and on the stock market 18.5%. If an investor had invested Rs. 100 in a bank in June 1974 he would have Rs. 813 on November 1998 ignoring taxes and Zakat). Same Rs. 100 invested in defence savings certificate would have grown to Rs. 2441. The best investment has been the stock market investment where Rs. 100 invested in June 1974 would have grown to Rs. 4394 in Nov, 1998. This is inspite the fact the stock market of Pakistan has shown very poor performance over the last four years.
NIT declares record Rs.6.20 dividend a unit
5th July 2007
KARACHI: Tariq Iqbal Khan, Chairman and Managing Director of the National Investment Trust (NIT), announced on Wednesday a record dividend of Rs.6.20 per unit for financial year 2007 as compared with Rs.5.80 per unit for financial year 2006. Speaking at a press conference at a local hotel after approval of the dividend by the Board of Director Rs., he said the unit holds Rs. would get dividend warrants by the end of second week of next month.

He said the net assets of the NIT had grown by 57 percent from Rs.64.296 billion on June 30, 2006 to Rs.100.963 billion on June 30, 2007. According to him, NAV per unit has grown from Rs.43.07 to Rs.62.38, showing a growth of 44.83 percent. The premier mutual fund of the country has once again outperformed the benchmark KSE-100 index by 6.96 percent. He informed that as of April 1, 2007 the fund had been split into two parts representing LOC and Non-LOC holds Rs., and now the NITL being the management company was managing two separate funds.

The LOC parts of the fund contain investments made by four commercial banks of the country in NIT units and the remaining part contains general investors. According to him, the splitting of the fund into two parts would ensure safety nets for both types of investors.

He said the NIT had realized an all-time high capital gains of Rs.16.818 billion in financial year 2007 as compared with Rs.6.805 billion recorded last year, showing a growth of 147 percent in capital gains of the NIT. This huge capital gains realized by the Trust was mainly attributable to the block sale of the NIT's holding in Lakson Tobacco, PICIC, Prime Bank, gains through rightsizing of portfolio as well as gains realized through normal trading activities. The gains realized through rightsizing of portfolios stood at Rs.11.07 billion.

The sale of NIT units during the year ended on June 30, 2007 stood at Rs.14.74 billion as against the sale of units worth Rs.5.04 billion in the previous year, depicting a huge increase of 192.5 percent in the sale of units over the previous year.

NIT units worth Rs.8.62 billion were redeemed during the year under review as against the units worth Rs.10.58 billion redeemed last year.

The NIT, according to Khan, earned a net income of Rs.19, 813 million, which was the highest-ever net income earned by the NIT in its entire life. The net income of the NIT depicts a growth of 114.52 percent increasing to Rs.19, 813 million in financial year 2007 from Rs.9, 236 million in financial year 2006.

This translates into the record earning per unit of Rs.12.24 in financial year 2007 as compared with the earning per unit of Rs.6.19 earned by the NIT in financial year 2006, thus earning per unit for the financial year 2007 surpassed last years highest-ever per unit mark by 97.74 percent.
Future Expectations
The return from investment in stock market comprises of two components; (i) capital gains/loss) resulting from appreciation/drop in stock prices; and (ii) dividends paid by companies to their shareholders. NIT projects a 18% return to investors investing in the stock market either directly or by investing in NIT Unites for the long term (more than 5 years).
This is based on the following;

  • 9% capital gains return per annum: This has been the average capital gains return per annum over the last 25 years, using SBP Share Price Index as a proxy for the stock market. Based on extremely low price levels in the market, the capital gains can be higher than 9%.

  • 10% dividend yield per annum on current price levels: NIT has a diversified portfolio that can be used as a proxy for the over all stock market. NIT will experience a 10% dividend yield on its equity investments this year (FY 98-99). Assuming a 10% capital gains per annum and a 10% growth in dividends per year, the dividend yield is expected to remain stable at 10%.
All investments in mutual funds and securities are subject to market risks. Its target return/dividend range cannot be guaranteed. NIT's Unit price is neither guaranteed nor administered/managed. It is based on Net Asset Value and the NAV of unit may go up or down depending upon the factors and forces affecting the stock market. Past performance is not necessary indicative of future results.
Other Improvement
a) Transparency

NIT's management has put proper systems and procedures in place to ensure transparency. This includes taping of office phones and setting up of an Internal Audit Department reporting to the Audit Committee of the Board. All NIT staff is required to give a declaration of their share holding and to in form the management on all acquisition/disposal of shares. All employees privy to the investment decision making process or having access to information relating to investment/disinvestment are barred from buying or selling shares on the stock market. They may sell their holding if acquired prior to joining NIT with proper disclosure to the company.
b) Voluntary Separation Scheme

To make NIT a lean and efficient Asset Management company and in compliance with government policy NIT has offered a Voluntary Separation Scheme to its employees. And 180 employees out of 273 have exercised the option to retire, of whom 18 have been retained due to their professional skills and the balance relieved of their duties and dues paid off.
c) Corporate Governance
A large number of companies listed on the stock exchange have a poor record of creating value and paying dividends to their minority shareholders. NIT is playing a proactive role to safeguard its own and other minority shareholders interests. During the last, year NIT has strived hard to extract value from its investments. These efforts included persuading management of companies in which NIT has significant holding to offer better dividends and improve their operational efficiency. NIT's corporate governance initiatives have paid off and the Trust has generated Rs 566 million in cash and created over Rs. 300 million in value by selling shares of 11 companies at prices significantly above their prevailing market price.
Agreement between NIT & Alfalah Securities (Pvt) Ltd
17 April, 2008
An agreement was formally signed on April, 17th 2008 between National Investment Trust Ltd (NIT) and Alfalah Securities (Pvt) Ltd. According to the agreement, NIT authorized Alfalah Securities as one of its distributors. Alfalah Securities Ltd is now authorized to sell NIT Units in Pakistan.

Alfalah Securities (Pvt) Ltd is a corporate member of Karachi Stock Exchange and a joint venture corporate brokerage house between Bank Alfalah Limited and stock market professional with majority ownership of Bank Alfalah Ltd.

Agreement between NIT & Atlas Capital Markets (Pvt) Ltd
28th May, 2007
Mr. Tariq Iqbal Khan, Chairman/Managing Director, National Investment Trust Ltd, and Mr. Muhammad Naeem Khan, Chief Executive Officer, Atlas Capital Markets (Pvt) Ltd, signed an agreement authorizing Atlas Capital Markets (Pvt) Ltd to sell NIT units through its designated branches all over Pakistan. The signing ceremony was held on 28th May, 2007, at NIT's Head Office, which was attended by the senior officials of both the organizations.
Agreement between NIT & HBL
22nd January, 2007
An agreement signed between National Investment Trust Ltd (NIT) AND Habib Bank Ltd (HBL) took place on January 22nd 2007., according to which HBL is authorized to sell NIT Units through its designated branches in Pakistan.

Mr. Tariq Iqbal Khan, Chairman and Managing Director-NIT and Mr. Abid Sattar, SEVP/MMC & Group Executive, Retail & Consumer Banking Group - HBL signed the Agreement. Members of the senior management of both the institutions were also present.

Conclusion/Remarks (of entire scenario)

According to our point of view the company is suffering no only due to this reason that the are not able to fulfill there target for that particular year for the purpose of taking an example the quality of services on different places are very attractive and there outlooks are also so good that the company can boost there products very effectively and quickly.

In the past few years the use of inside trade in Pakistan is rapidly increasing and fluctuation in the international value of the currencies also create difficult for the company to compete others in these situations.

Other companies are going vary tactically and improve there position and market share in Pakistan. Due to this reason also the demand for investment in different areas is declining.

Financial analysis indicates that the company's current ratio is increasing which indicate that company's current assets are increasing in respect of its current liabilities and current activities of the company is boosting. On the other hand Quick ratio also shows that the company is in safe situation also in the position to convert its assets in cash on quickly bases the gross profit of the company is increasing in 2 respects our sales are increasing with that encouraging trend which was shown by the people and the cost of the company is decreasing which shows its impact in term of high gross profit our return on equity.
The analysis of the financial figures also shows that company is doing well in respect of making good strategies and also thinking to put the company on the continuous winning track but a thing is also need to be considered here is that there strategies and gap analysis procedure is vary effective but also required to implement it effectively and accurately.
In 2007 company's sales are increasing in respect of 2006 sales there cost of goods sold in 2007 is decreasing. Due to this reason the gross profit margin of the company is very high in respect of previous 7 years. The ATM card facility is provided by the company but that facility can not put the things right. And the profit graph and market share of the company is increasing by leaps and bounce and due to that reason there market growth is also increasing. boost in earning per share also have a impact on the company's goodwill, image, and also beneficial for the share value of the company. and in year 2007 there divided in the record dividend given by the company to its shareholders.