| Tri - Star Mutual Funds Ltd. |
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| Annual
Reports 2002 |
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| COMPANY
INFORMATION |
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| Board
of Directors: |
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| Mr.
Mohammed Ahmad Ismail |
Chairman |
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| Mr. Habib Jamal |
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Director |
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| Mr. Rashid Ahmad |
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Director |
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| Mr.
Jawed Ahmad Siddiqui |
Director |
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| Mr. Asad Ahmad |
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Director |
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| Mr.
Jawed Dost Mohammad |
Director |
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| Mr. Tahir Ahmad |
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Chief Executive |
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| Investment
Adviser: |
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| Tri-Star Investments (Pvt.)
Ltd. |
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| F/498,
S.l.T.E., |
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| Karachi - 75700. |
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| Auditors: |
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| Hyder Bhimji & Co. |
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| Chartered
Accountants |
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| Bankers: |
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| Bank AI-Habib Ltd. |
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| Habib Bank Ltd. |
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| Registrar & Certificate |
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| Transfer Office: |
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| F/498,
S.l.T.E., |
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| Karachi-75700. |
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| Registered Office: |
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| F/498,
S.l.T.E., |
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| Karachi-75700. |
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| Notice of Meeting |
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| Notice
is hereby give that the Tenth Annual General Meeting of TRI-STAR MUTUAL FUND
LTD., will be |
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| held
on Saturday, 7th September, 2002 at F/498, S.l.T.E., Karachi at 4.00 PM. to
transact the following |
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| business: |
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| 1. Recitation from the Holy Quran. |
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| 2.
To receive, consider and adopt the annual audited accounts for the year ended
30th June, 2002 |
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| together
with the Directors' Report and Auditors' Report thereon. |
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| 3.
To appoint Auditors of the Company and to fix their remuneration. The present
Auditors M/s. |
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| Hyder
Bhimji & Co. Chartered Accountants retire and being eligible, offer
themselves for |
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| reappointment. |
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| 4.
To elect 7 Directors of the Fund fora period of three years. The number of
Directors to be elected |
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| is
fixed by the Board of Directors in accordance with the provisions of Section
178(1) of the |
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| Companies
Ordinance, 1984. |
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| The
following retiring directors are eligible for re-election: |
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| 1.
Mr. Mohammed Ahmadlsmail |
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| 2. Mr. HabibJamal |
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| 3.
Mr. RashidAhmad |
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| 4.
Mr.JavedDostMohammad |
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| 5. Mr.AsadAhmad |
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| 6.
Mr. Jawed AhmadSiddiqui |
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| 7. Mr. TahirAhmad |
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| 5.
To transact any other business with the permission of the Chair. |
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| By
and on behalf of the Board |
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Dated: 17th August, 2002 |
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| Fund
Secretary |
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Place: Karachi. |
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| NOTES: |
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| 1.
The Certificate Transfer books of the Fund will remain closed from 27th
August,2002 to 7th |
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| September,
2002 (both days inclusive) |
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| 2.
A member entitled to attend the Annual General Meeting is entitled to appoint
a proxy and vote in |
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| his
place at the meeting. Proxies in order to be effective must be received at
the registered office |
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| of
the Fund at F/498, S.l.T.E., Karachi duly stamped, signed and witnessed not
laterthan 48 |
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| hours
before the meeting. |
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| 3.
Members are requested to notify any change in their addresses immediately. |
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| 4.
Notice of candidature for the office of Directorship should be received at
least 14days before the |
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| meeting
at the Registered Office of the Fund in accordance with the provision of
Section 178(3) |
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| of
the Companies Ordinance, 1984. |
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| DIRECTORS'
REPORT |
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| The
Board of Directors have pleasure in presenting the Tenth Annual Report
together with the audited |
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| accounts
forthe year ended June 30,2002. |
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| FINANCIAL
RESULTS: |
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| During
the period under review, your Fund earned dividend income of Rs.373, 790.
After taking into |
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| account
reversal of provision for diminution in value of investment, net profit for
the year was Rs. |
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| 687,746.
The market conditions remained uncertain during the current year. Provision
for diminution |
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| in
value of investment was made last year keeping in view the present market
value of shares and the |
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| provision
is proportionately reversed as the market value of shares increases. The Fund
is adopting |
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| a
proactive strategy with caution, keeping in view the Poor market conditions
due to uncertain |
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| economic
and political conditions, world wide economic recession, withdrawal of
investment |
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| portfolios
by foreign funds etc. The financial results are summarized as follows: |
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2002 |
2001 |
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| |
(Rupees) |
(Rupees) |
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| Income |
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373,790 |
255,476 |
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| Capital
Gain/(Loss) |
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- |
25,781 |
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373,790 |
229,695 |
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| Less: Operating Expenses |
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463,318 |
517,027 |
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| Operating Profit |
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89,528 |
287,332 |
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| Add:
(Provision)/ Reversal of Provision for diminution |
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| in value of investment |
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777,274 |
957,937 |
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| Profit /(Loss) for the year |
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687,746 |
1,245,269 |
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| The
Board of Directors have not recommended any dividend for the year. |
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| MARKET
REVIEW AND FUTURE OUTLOOK |
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| The
Karachi Stock Exchange 100 share index stood at 1770 points on June 30, 2002
as compared to |
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| 1366
points on June 30, 2001 i.e. increase of 404 points. The KSE 100 share index
stood at 1133 |
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| points
at the end of 1 st Quarter of the year i.e. 30th Sept 2001 and was 1273
points as on 31 st Dec. |
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| 2001.
It started its upward journey reaching 1868 Points as on 30th March 2002 and
finally closed at |
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| 1770
Points as on 30th June 2002. |
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| The
Stock Market came under tremendous pressure after attack on World Trade
Centre, New York on |
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| September
11, 2001 followed by Afghan War. Soon after, threat of war with India kept
the market |
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| under
pressure. Although threat of war with India has subsided, yet India has not
removed its army |
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| from
the Pakistani Border, which is still a source of concern. |
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| |
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| World
Wide economic recession and financial scandals have affected the stock
exchanges |
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| internationally,
including stock exchanges in Pakistan. On the political front, the
forthcoming general |
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| elections
in October, 2002 has added uncertainty to the market. As our country's
economic condition |
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| is
improving and that foreign exchange reserves are now around 7 billion
dollars, we are hopeful that |
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| the
market conditions will improve and buying activity will start in a big way
soon after the general |
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| elections, |
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| AUDITORS |
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| |
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| The
present auditors M/s. Hyder'Bhimji & Co. are due for retirement and being
eligible offer |
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| themselves
for re-appointment. |
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| ACKNOWLEDGMENTS |
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| your
directors would like to record their appreciation of the dedication and hard
work of the staff and |
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| officers
of the Fund. |
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| By
and on behalf of the Board |
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Karachi: August 16, 2002. |
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| TAHIR AHMAD |
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| Chief Executive |
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| Auditors'
Report to the Certificate Holders |
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| We
have audited the annexed Balance Sheet of TRI-STAR MUTUAL FUND LIMITED as at
30th. June, |
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| 2002
and the related profit and loss account, cash flow statement and statement of
changes in equity |
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| together
with the notes forming part there of, the year then ended and we state that
we have obtained all |
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| the
information and explanations which, to the best of our knowledge and belief,
were necessary for the |
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| purposes
of our audit. |
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| It
is the responsibility of the company's management to establish and maintain a
system of internal |
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| control,
and prepare and present the above said statements in conformity with the
approved accounting |
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| standards
and the requirements of the Companies Ordinance, 1984 and investment
Companies and |
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| Investment
Adviser's Rules, 1971. Our responsibility is to express our opinion on these
statements |
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| based
on our audit. |
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| |
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| We
conducted our audit in accordance with the auditing standards as applicable
in Pakistan. These |
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| standards
require that we plan and perform the audit to obtain reasonable assurance
about whether the |
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| above
said statements are free of any material misstatement. An audit includes
examining, on a test |
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| basis,
evidence supporting the amounts and disclosures in the above said statements.
An audit also |
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| includes
assessing the accounting policies and significant estimates made by
management, as well as |
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| evaluating
the overall presentation of the above said statements. We believe that our
audit provides a |
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| reasonable
basis for our opinion and, after due verification, we report that. |
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| As
detailed in note 3.3 due to an illegal income Tax raid, physical verification
of FEBC's could not be |
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| carried out. |
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| Subject
to the above. |
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| (A)
In our opinion, proper books of account have been kept by the Company as
required by the |
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| Companies
Ordnance, 1984 and Rule 16 of the Investment Companies and Investment |
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| Adviser's
Rules 1971. |
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| (B) inouropinion: |
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| |
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| i-
The balance sheet and profit and loss account together with the notes thereon
have been drawn up in |
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| conformity
with the Companies Ordinance, 1984 and in accordance with the provisions of
the investment |
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| Companies
and Investment Adviser's Rules, 1971, and are in agreement with the books of
account and |
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| are
further in accordance with accounting policies consistently applied: |
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| ii-
The expenditure incurred during the years was forthe purpose of the company's
business; and |
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| iii-
The business conducted, investments made and the expenditure incurred during
the year were in |
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| accordance
with the Investment policy of the Company and Investment Companies and
Investment |
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| Adviser's
Rules, 1971. |
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| iv-
The Company has not contravened the provision of Rule 8 of the Investment
Companies and |
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| In
vestment Adviser's Rules, 1971; and |
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| (c)
in our opinion and the best of our information and according to the
explanations give to us, the |
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| balance
sheet; profit and loss account, cash flow statement and the statement of
changes in equity |
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| togetherwith
the notes forming part thereof confirm with approved accounting standards as
applicable in |
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| Pakistan,
and give the information required by the Companies Ordinance, 1984 and
Investment |
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| Companies
and Investment Adviser's Rules. 1971 in the manners so required and
respectively give a |
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| true
and fair view of the state of thecompany 's affairs as at 30th June, 2002 and
of the profit /loss, its |
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| cash
flows and changes in equity for the year then ended; and |
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| (
d) inouropinion, no Zakat was deductible at source under the Zakat and Ushr
Ordinance, 1980. |
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| Date:
August 16, 2002 |
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Hyder Bhimji & Co. |
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| Place:
Karachi. |
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Chartered Accountants |
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| Balance
Sheet as at JUNE 30. 2002 |
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Note |
2002 |
2001 |
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|
RUPEES |
RUPEES |
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| |
| CURRENT
ASSETS |
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| INVESTMENTS
- MarketableSecurities |
3 |
16,575,448 |
15,779,864 |
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| Advances,
pre-payments & other receivables |
4 |
109,921 |
109,921 |
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| Cash
& Bank Balances |
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5 |
28,598 |
32,746 |
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|
138,519 |
142,667 |
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| |
16,713,967 |
15,922,531 |
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| CURRENT
LIABILITIES |
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| Due to investment
adviser-an associated company |
6 |
320,992 |
307,237 |
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| Trade
creditors, accrued expenses and other liabilities - |
7 |
340,230 |
250,295 |
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| Provision
for taxation |
|
3,135 |
3,135 |
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| |
|
664,357 |
560,667 |
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| NET
ASSETS |
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16,049,610 |
15,361,864 |
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| SHAREHOLDERS
EQUITY |
|
13 |
16,049,610 |
15,361,864 |
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| NOTE:'
The annexed notes form an integral part of these accounts |
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| KARACHI:
August 16, 2002 |
|
TAHIRAHMAD |
|
ASAD AHMAD |
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|
Chief Executive |
|
Director |
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| PROFIT AND LOSS ACCOUNT |
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| FOR
THE YEAR ENDED JUNE 30. 2002 |
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| |
Note |
2002 |
2001 |
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|
RUPEES |
RUPEES |
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| |
| INCOME |
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8 |
373,790 |
255,476 |
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| CAPITAL
GAIN/(LOSS) |
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9 |
- |
25,781 |
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| |
|
373,790 |
229,695 |
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| Less: OPERATING EXPENSES |
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| Administrative |
|
10 |
141,746 |
209,470 |
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| Financial |
|
11 |
580 |
320 |
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| Remuneration
of Investment Adviser |
|
6.1 |
320,992 |
307,237 |
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| |
|
463,318 |
517,027 |
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| |
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| Operating
Profit/ (Loss) for the Year |
|
89,528 |
287,332 |
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| |
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| (Provision)/
reversal of provision for diminution in value of Investment |
777,274 |
957,937 |
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| Profit/ (Loss) for the Year |
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687,746 |
1,245,269 |
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| Accumulated (Loss) brought
forward |
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34,638,136 |
33,392,867 |
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| Accumulated (Loss) carried
forward |
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33,950,390 |
34,638,136 |
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| Earning per Share |
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12 |
0.14 |
0.25 |
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| |
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| •NOTE:
The annexed notes form an integral part of these accounts |
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| KARACHI:
August 16, 2002. |
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TAHIR AHMAD |
|
ASAD AHMAD |
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|
Chief Executive |
|
Director |
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| STATEMENT OF CHANGES IN
FINANCIAL POSITION |
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| CASH
FLOW STATEMENT FOR THE YEAR ENDED JUNE 30, 2002 |
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2002 |
2001 |
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| |
RUPEES |
RUPEES |
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| |
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| CASH
FLOW FROM OPERATING ACTIVITIES |
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| |
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| Profit / (Loss) for the year |
|
687,746 |
1,245,269 |
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| |
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| Add:
Items not involving movements of funds: |
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| |
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| Profit/
(Loss) on Sale of Investments |
|
- |
25,781 |
|
| Provision
for diminution in the value of Investments |
|
777,274 |
957,937 |
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| Dividend Income |
|
373,790 |
255,476 |
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| |
|
463,318 |
517,027 |
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| |
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| (Increase)
/ Decrease in Current Assets |
|
103,690 |
181,481 |
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| |
|
359,628 |
335,546 |
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| INVESTING
ACTIVITIES |
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| |
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| Dividend
Income |
|
373,790 |
255,476 |
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| Purchase of Investment |
|
18,310 |
2,795,580 |
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| Sale
Proceed Of Investments |
|
- |
2,616,200 |
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| |
|
255,480 |
75,826 |
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| FINANCING ACTIVITIES |
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| NET CASH FLOW |
|
4,148 |
259,720 |
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| |
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| Cash and Bank Balance
at begining of the year |
|
32,746 |
292,466 |
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| Cash
and Bank Balance at the end of the year |
|
28,598 |
32,746 |
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| |
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| NOTES
TO THE ACCOUNTS FOR THE YEAR ENDED JUNE 30, 2002 |
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| |
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| 1.
STATUS AND NATURE OF BUSINESS |
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| |
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| The
fund was incorporated as public limited company under Investment Companies
and |
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| Investment
Adviser's Rules 1971. The Fund has entered into an agreement with an
associated |
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| company,
Tri-Star Investments (Pvt) Ltd. to act as its "Investment Adviser"
The Fund is listed on |
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| Karachi
and Islamabad Stock Exchanges |
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| |
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| 2.
ACCOUNTING POLICIES |
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| |
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| The
significant accounting policies are summarized below : ' |
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| 2.1.
The accounts of the Company are prepared under the historical cost
convention. |
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| |
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| 2.2 Investments-Marketable
Securities. |
|
| (i)
Investments are valued at cost. |
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| |
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| (ii)
Profit or loss on sale of investments is accounted for in the year in which
it arise. |
|
| (iii)
Full provision is made against diminution in the value of investments. |
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| |
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| 2.3
Revenue Recognition |
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| |
|
| (i)
Dividend Income is recorded at the time of the closure of share transfer
books of |
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| the
company declaring the dividend and is show net of zakat deducted. |
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| |
|
| (ii)
Sales and purchases of securities are recognized on the date of contract.
Capital |
|
| gain
on sale of investment is taken to income of the period in which it arises. |
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| |
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| 3.
INVESTMENTS - MARKETABLE SECURITIES |
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| These
securities are shares / certificates of Rs. 10/- each. |
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| |
| |
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| NAME OF COMPANY |
|
NUMBER OF
SHARES |
Balances As At June 30 , 2002 |
Percentage In Relation To |
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| |
Balances As
At |
Purchases |
Bonus Shares |
Sales |
Number Of |
At Cost |
At Market |
