| Golden Arrow Selected Stocks Fund Limited |
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| Annual
Report 2001 |
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| CONTENTS |
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| Board
of Directors and Company Information |
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| Notice
of Meeting |
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|
| Directors'
Report |
|
| Pattern
of Shareholding |
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|
| Auditors' Report |
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|
|
| Balance Sheet |
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| Profit
and Loss Account |
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|
| Statement
of Changes in Equity |
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| Statement
of Movement in Equity and Reserves |
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| Distribution
Statement |
|
|
| Statement
of Changes in Financial Position |
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| Notes
to the Accounts |
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| Investment
Adviser's Statement of Income and |
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| Expenditure
in relation to Investment Company |
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|
| BOARD
OF DIRECTORS |
|
|
| Mr.
Mohammad Basheer Janmohammed |
Chairman |
|
| Mr.
Ahmed Abdul Sattar |
|
Director |
|
| Mr.
Muhammad Atiq |
|
Director |
|
| Mr.
Imran Inayat Butt |
|
Nominee Director of ICP |
|
| Mr.
Muhammad Rafique Tumbi |
|
Director |
|
| Malik
M. Parvez Akhtar |
|
Director |
|
| Mr.
Mohammed Ashraf Kothari |
|
Director and Chief
Executive |
|
|
| INVESTMENT
ADVISER |
|
| Golden
Arrow Investment & Research (Private) Limited |
|
| 607, Uni Tower, |
|
| I.I.
Chundrigar Road, |
|
| Karachi. |
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| CUSTODIAN |
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| National
Bank of Pakistan, |
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| I.I.
Chundrigar Road, Karachi. |
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| AUDITORS |
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| Taseer
Hadi Khalid & Co., |
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| Chartered
Accountants, |
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| First
Floor, Sheikh Sultan Trust Bldg. No. 2, |
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| Beaumont Road, |
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| Karachi. |
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|
| LEGAL
ADVISER |
|
| Ali
Daraz Siddiqui, |
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| C/o.
Noorallah A. Manji, |
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| 5th
Floor, Jubilee Insurance House, |
|
| I.I.
Chundrigar Road, Karachi. |
|
|
| REGISTERED
OFFICE |
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| 607, Uni Tower, |
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| I.I.
Chundrigar Road, Karachi. |
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| NOTICE
OF MEETING |
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| Notice
is hereby given that the Eighteenth Annual General Meeting of Golden Arrow
Selected Stocks |
|
| Fund
Limited will be held on Friday, 7th December, 2001 at 10:00 a.m. at 703, Uni
Tower, I.I. Chundrigar |
|
| Road,
Karachi to transact the following business:- |
|
|
| --
To confirm the Minutes of the Extraordinary General Meeting held on 11th May,
2001. |
|
|
| --
To receive, consider and adopt the Audited Accounts together with the
Directors' and Auditors' Report |
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| for
the year ended 30th June, 2001. |
|
|
| --
To appoint Auditors of the Company and to fix their remuneration. The present
Auditors, Messrs. |
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| Taseer
Hadi Khalid & Co., Chartered Accountants, retire and being eligible,
offer themselves for re- |
|
| appointment. |
|
|
| --
To transact any other business as may be placed before the meeting with the
permission of the |
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| Chair. |
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|
By Order of the Board |
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| Karachi:
15th November, 2001 |
|
Company Secretary |
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| NOTES: |
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| 1.
A member entitled to attend and vote at the meeting may appoint a proxy to
attend and vote instead |
|
| of
him/her at the meeting. Proxies must be deposited at the Company's Registered
Office not less |
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| than
48 hours before the time for holding the meeting. A proxy must be a member. |
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|
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| 2.
The Share Transfer books of the Company will remain closed from 1st December,
2001 to 7th |
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| December,
2001 (both days inclusive). |
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|
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| 3.
The Shareholders are advised to notify the Company of any change in their
addresses to ensure |
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| prompt
delivery of mails. Any shares for transfers etc. should also be lodged with
the Company. |
|
|
|
| DIRECTORS'
REPORT |
|
|
| The
Directors of Golden Arrow Selected Stocks Fund Ltd. are pleased to present
this report together |
|
| with
accounts of the Fund for the financial year ended 30th June, 2001. |
|
|
| MARKET
BEHAVIOUR |
|
| The
first half of the year under review has been static. The KSE Index was just
down 1% between |
|
| the
period after touching its peak of the year at around 1637 points. However
during the second half |
|
| performance
of the market was lacklustre with the continuous declining trend and year
ended with almost |
|
| 10%
down from the KSE index 1521 points on 1st July 2000 to 1366 points on 30th
June 2001. The |
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| reasons
for this decline can be contributed to following factors: |
|
|
| a)
Global economic slowdown |
|
| b)
Aggressive selling by Foreign Funds |
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| c)
Shortage of water resulting in decreasing demand of agriculture inputs like
fertilizer, urea etc. |
|
| d)
Uncertainty about the dollar rupee parity rate. |
|
|
| OPERATIONAL
RESULTS |
|
| The
company's profit amounted to Rs. 3.5 million as at 30th June 2001 against the
profit of Rs. 17.6 |
|
| million
for the preceding year. The decrease in profit is due to decline of KSE Index
from 1521 points |
|
| on
30-06-2000 to 1366 points on 30-06-2001. Inspite of downward trend prevailed
during the year net |
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| assets
value per share of your company has improved from Rs. 4.54 on 30-06-2000 to
Rs. 4.73 on 30- |
|
| 06-2001.
The figure of profit has arrived at after meeting administrative expenses,
custodian fee, auditors' |
|
| remuneration,
the fee of 2% of the net assets of the company to investment adviser and
finally reversal |
|
| of
provision for diminution in value of marketable securities by Rs. 6.5
million. |
|
|
| FUTURE
PROSPECTS |
|
| The
future prospects of the market, as usual will depend on the growth of the
economy, Government |
|
| fiscal
policies and status of debts burden, internal as well as external. |
|
|
| ACKNOWLEDGEMENTS |
|
| The
Directors would like to take this opportunity of thanking the Securities
& Exchange Commission |
|
| of
Pakistan and Ministry of Finance for their support to mutual funds community
as whole. |
|
|
| The
Board also appreciate the devoted work performed by the staff and officers of
the company. |
|
|
| "Mr.
Said Ahmed - Our Chairman" |
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| While
concluding we regret to inform that our chairman Mr. Said Ahmed, expired in
July 2001. As |
|
| a
chairman and director on our Board, the Late Said Ahmed, rendered valuable
contribution to the Board's |
|
| deliberations.
Due to his exemplary life, full of human touch and kind relations with every
one, Mr. Said |
|
| Ahmed
will ever be remembered by his friends, colleagues, associates and family
members for a long |
|
| time,
particularly for his encouragement and cooperation he always extended to
everyone. We pray that |
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| the
departed soul may rest in peace in its heavenly abode. We also pray that the
members of the deceased |
|
| family
bear this irreparable loss with strength and fortitude. |
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|
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|
For and on behalf of the Board |
|
|
|
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|
|
|
MOHAMMAD BASHEER JANMOHAMMED |
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| Karachi:
10th November, 2001 |
|
Chairman |
|
|
|
| PATTERN
OF SHAREHOLDING AS AT 30TH JUNE 2001 |
|
|
| No. of |
Having
Shares |
|
|
| Shareholders |
From |
To |
Shares Held |
Percentage |
|
|
|
| 636 |
1 |
100 |
39,188 |
0.24 |
|
|
| 751 |
101 |
500 |
213,785 |
1.32 |
|
|
| 514 |
501 |
1,000 |
421,076 |
2.60 |
|
|
| 1,054 |
1,001 |
5,000 |
2577401 |
1.590 |
|
|
| 218 |
5,001 |
10,000 |
1543405 |
9.52 |
|
|
| 74 |
10,001 |
15,000 |
934,029 |
5.76 |
|
|
| 33 |
15,001 |
20,000 |
589,891 |
3.64 |
|
|
| 14 |
20,001 |
25,000 |
310,701 |
1.92 |
|
|
| 3 |
25,001 |
30,000 |
80,917 |
0.50 |
|
|
| 8 |
30,001 |
35,000 |
271,346 |
1.67 |
|
|
| 5 |
35,001 |
40,000 |
188,553 |
1.16 |
|
|
| 7 |
40,001 |
45,000 |
296,391 |
1.83 |
|
|
| 3 |
45,001 |
50,000 |
143,496 |
0.89 |
|
|
| 3 |
50,001 |
55,000 |
157,979 |
0.97 |
|
|
| 5 |
55,001 |
60,000 |
289,730 |
1.79 |
|
|
| 2 |
60,001 |
65,000 |
125,850 |
0.78 |
|
|
| 1 |
65,001 |
70,000 |
70,000 |
0.43 |
|
|
| 3 |
75,001 |
80,000 |
232,933 |
1.44 |
|
|
| 1 |
85,001 |
90,000 |
87,500 |
0.54 |
|
|
| 3 |
95,001 |
100,000 |
294,789 |
1.82 |
|
|
| 1 |
100,001 |
105,000 |
104,900 |
0.65 |
|
|
| 3 |
140,001 |
145,000 |
428,596 |
2.64 |
|
|
| 1 |
180,001 |
185,000 |
182,971 |
1.13 |
|
|
| 1 |
190,001 |
195,000 |
191,672 |
1.18 |
|
|
| 1 |
215,001 |
220,000 |
218,023 |
1.34 |
|
|
| 1 |
24,001 |
250,000 |
247,700 |
1.53 |
|
|
| 1 |
450,001 |
455,000 |
450,500 |
2.78 |
|
|
| 1 |
465,001 |
470,000 |
465,082 |
2.87 |
|
|
| 1 |
470,001 |
475,000 |
474,300 |
2.93 |
|
|
| 1 |
545,001 |
550,000 |
549,232 |
3.39 |
|
|
| 1 |
685,001 |
690,000 |
689,600 |
4.25 |
|
|
| 1 |
1,190,001 |
1,195,000 |
1,194,464 |
7.37 |
|
|
| 1 |
2,140,001 |
2,145,000 |
2,144,000 |
13.22 |
|
|
| ------------------ |
|
------------------ |
------------------ |
|
| 3,353 |
|
|
16,210,000 |
100.00 |
|
| ========== |
|
========== |
========== |
|
|
| CATEGORIES
OF SHAREHOLDERS AS ON 30 JUNE 2001 |
|
|
| Particulars |
|
Shareholders |
Shareholding |
Percentage |
|
|
|
|
|
|
| Individuals |
|
|
3,308 |
8,296,507 |
51.18 |
|
| Insurance
Companies |
|
4 |
94,999 |
0.59 |
|
| Joint
Stock Companies |
|
26 |
4,242,284 |
26.17 |
|
| Financial
Institution |
|
8 |
2,576,079 |
15.89 |
|
| Modaraba
Companies |
|
4 |
710,731 |
4.38 |
|
| Leasing
Companies |
|
2 |
147,200 |
0.91 |
|
| Non Resident |
|
|
1 |
142,200 |
0.88 |
|
|
------------------ |
------------------ |
------------------ |
|
|
3,353 |
16,210,000 |
100.00 |
|
|
========== |
========== |
========== |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of Golden Arrow
Selected Stocks Fund Limited as at |
|
| 30
June 2001 and the related profit and loss account, cash flow statement and
statement of changes |
|
| in
equity together with the notes forming part thereof, for the year then ended
and we state that we have |
|
| obtained
all the information and explanations which, to the best of our knowledge and
belief, were necessary |
|
| for
the purposes of our audit. |
|
|
| It
is the responsibility of the company's management to establish and maintain a
system of internal control, |
|
| and
prepare and present the above said statements in conformity with the approved
accounting standards |
|
| and
the requirements of the Companies Ordinance, 1984 and Rule 16 of the
Investment Companies and |
|
| Investment
Advisers Rules, 1971. Our responsibility is to express an opinion on these
statements based |
|
| on our audit. |
|
|
| We
conducted our audit in accordance with the International Standards of
Auditing as applicable in Pakistan. |
|
| These
standards require that we plan and perform the audit to obtain reasonable
assurance about whether |
|
| the
above said statements are free of any material misstatement. An audit
includes examining, on a test |
|
| basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes |
|
| assessing
the accounting policies and significant estimates made by management, as well
as, evaluating |
|
| the
overall presentation of the financial statements. We believe that our audit
provides a reasonable basis |
|
| for
our opinion and, after due verification, we report that: |
|
|
| a)
in our opinion, proper books of account have been kept by the company as
required by the Companies |
|
| Ordinance,
1984 and Rule 16 of the Investment Companies and Investment Advisers Rules,
1971; |
|
|
| b)
in our opinion: |
|
|
| i)
the balance sheet and profit and loss account together with the notes thereon
have been drawn |
|
| up
in conformity with the Companies Ordinance, 1984, and in accordance with the
provisions of |
|
| the
second schedule to the Investment Companies and Investment Advisers Rules,
1971, and are |
|
| in
agreement with the books of account and are further in accordance with
accounting policies |
|
| consistently
applied; |
|
|
|
|
| ii)
the expenditure incurred during the year was for the purpose of the company's
business; and |
|
|
| iii)
the business conducted, investments made and the expenditure incurred during
the year were in |
|
| accordance
with the objects of the company; |
|
|
| c)
in our opinion and to the best of our information and according to the
explanations given to us, the |
|
| balance
sheet, profit and loss account, cash flow statement and statement of changes
in equity together |
|
| with
the notes forming part thereof conform with approved accounting standards as
applicable in |
|
| Pakistan,
and, give the information required by the Companies Ordinance, 1984 and
Investment |
|
| Companies
and Investment Advisers Rules, 1971 in the manner so required and
respectively give |
|
| a
true and fair view of the state of the company's affairs as at 30 June 2001
and of the profit, its |
|
| cash
flows and changes in equity for the year then ended; and |
|
|
| d)
in our opinion no Zakat was deductible at source under the Zakat and Ushr
Ordinance, 1980 (XVIII |
|
| of 1980). |
|
|
|
|
|
TASEER HADI KHALID & CO. |
|
| Karachi:
10th November, 2001 |
|
Chartered Accountants |
|
|
|
| BALANCE
SHEET AS AT 30 JUNE 2001 |
|
|
|
NOTE |
2001 |
2000 |
|
|
|
(Rupees
'000) |
|
|
| ASSETS |
|
| Long
Term Investments |
|
3 |
-- |
3,750 |
|
|
|
|
| CURRENT
ASSETS |
|
|
|
| Marketable
securities |
|
4 |
75,934 |
68,759 |
|
| Shod
term investments |
|
3 |
1,250 |
-- |
|
| Advances,
prepayments and other receivables |
5 |
775 |
1,216 |
|
| Bank balances |
|
6 |
1,594 |
1,591 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
79,553 |
71,566 |
|
|
|
|
------------------ |
------------------ |
|
| Total Assets |
|
|
79,553 |
75,316 |
|
|
|
|
|
|
| LIABILITIES |
|
|
|
|
|
| CURRENT
LIABILITES |
|
|
|
| Due
to shareholders on reduction of capital |
|
45 |
45 |
|
| Accrued
expenses |
|
7 |
431 |
189 |
|
| Due
to investment adviser - an associated company |
8 |
1,534 |
735 |
|
| Unclaimed
dividend |
|
|
533 |
557 |
|
| Provision
for taxation |
|
9 |
309 |
241 |
|
|
|
|
------------------ |
------------------ |
|
| Total Liabilities |
|
|
2,852 |
1,767 |
|
|
|
|
------------------ |
------------------ |
|
| Net Assets |
|
|
76,701 |
73,549 |
|
|
========== |
========== |
|
|
|
| CAPITAL
AND RESERVES |
|
|
|
| Share Capital |
|
| Authorised |
|
| 60,000,000
ordinary shares of Rs. 5/- each |
|
300,000 |
300,000 |
|
|
|
|
========== |
========== |
|
| Issued,
subscribed and paid-up |
|
|
| 16,210,000
ordinary shares of Rs. 5/- each |
10 |
81,050 |
81,050 |
|
|
| Reserves |
|
| Share premium |
|
|
6,700 |
6,700 |
|
| General reserve |
|
|
500 |
500 |
|
| Accumulated
loss |
|
|
(11,549) |
(14,701) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(4,349) |
(7,501) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
76,701 |
73,549 |
|
|
|
|
========== |
========== |
|
| Contingencies
and Commitments |
|
11 |
|
|
|
|
|
| These
accounts should be read in conjunction with the attached notes. |
|
|
|
MOHAMMAD BASHEER JANMOHAMMED |
|
M. ASHRAF KOTHARI |
|
|
CHAIRMAN |
|
DIRECTOR |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED 30 JUNE 2001 |
|
|
|
NOTE |
2001 |
2000 |
|
|
|
(Rupees
'000) |
|
|
| Sales
of marketable securities |
|
199,552 |
247,742 |
|
| Cost
of sales of marketable securities |
|
207,324 |
251,859 |
|
|
|
------------------ |
------------------ |
|
| Loss
on sale of marketable securities |
|
(7,772) |
(4,117) |
|
|
|
|
|
| Other income |
|
|
6,624 |
5,676 |
|
|
|
------------------ |
------------------ |
|
|
|
(1,148) |
1,559 |
|
|
| OPERATING
EXPENSES |
|
|
|
| Administrative |
|
|
14 |
311 |
286 |
|
| Financial |
|
|
15 |
-- |
13 |
|
| Remuneration
to the investment adviser |
8 |
1,534 |
735 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
1,845 |
1,034 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(2,993) |
525 |
|
| Reversal
of provision for diminution |
|
|
| in
value of marketable securities |
|
|
6,455 |
17,087 |
|
|
|
|
------------------ |
------------------ |
|
| Profit
for the year before taxation |
|
|
3,462 |
17,612 |
|
|
| Taxation
-- Current Year |
|
|
309 |
241 |
|
| -- Prior Year |
|
1 |
11 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
310 |
252 |
|
|
|
|
------------------ |
------------------ |
|
| Profit
for the year after taxation |
|
|
3,152 |
17,360 |
|
|
|
|
========== |
========== |
|
| Earning
per share - basic and diluted |
16 |
0.19 |
1.07 |
|
|
========== |
========== |
|
|
| These
accounts should be read in conjunction with the attached notes. |
|
|
|
MOHAMMAD BASHEER JANMOHAMMED |
|
M. ASHRAF KOTHARI |
|
|
CHAIRMAN |
|
DIRECTOR |
|
|
|
| STATEMENT
OF CHANGES IN EQUITY |
|
| FOR
THE YEAR ENDED 30 JUNE 2001 |
|
|
|
|
(Rupees '000) |
|
|
|
Share |
Share |
General |
Accumu- |
Total |
|
|
|
Capital |
Premium |
Reserves |
lated loss |
|
|
|
|
|
| Balance
as on 1 July 1999 |
81,050 |
6,700 |
500 |
(32,061) |
56,189 |
|
| Profit
for the year |
-- |
-- |
-- |
17,360 |
17,360 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Balance
as on 30 June 2000 |
81,050 |
6,700 |
500 |
(14,701) |
73,549 |
|
| Profit
for the year |
-- |
-- |
-- |
3,152 |
3,152 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Balance
as on 30 June 2001 |
81,050 |
6,700 |
500 |
(11,549) |
76,701 |
|
|
|
========== |
========== |
========== |
========== |
========== |
|
|
|
MOHAMMAD BASHEER JANMOHAMMED |
|
M. ASHRAF KOTHARI |
|
|
CHAIRMAN |
|
DIRECTOR |
|
|
|
| STATEMENT
OF MOVEMENT IN EQUITY AND RESERVES |
|
| FOR
THE YEAR ENDED 30 JUNE 2001 |
|
|
|
2001 |
2000 |
|
|
| Net
Assets per share at the beginning of the year |
|
4.54 |
3.47 |
|
| Profit
for the year-per share |
|
0.19 |
1.07 |
|
|
------------------ |
------------------ |
|
| Net
assets per share at the end of the year |
Rupees |
4.73 |
4.54 |
|
|
========== |
========== |
|
|
| These
accounts should be read in conjunction with the attached notes. |
|
|
|
| DISTRIBUTION
STATEMENT |
|
| FOR
THE YEAR ENDED 30 JUNE 2001 |
|
|
|
2001 |
2000 |
|
|
(Rupees
'000) |
|
|
| Accumulated
loss brought forward |
|
(14,701) |
(32,061) |
|
| Net
Profit for the year |
|
3,152 |
17,360 |
|
|
------------------ |
------------------ |
|
| Accumulated
loss carried forward |
|
(11,549) |
(14,701) |
|
|
========== |
========== |
|
|
| These
accounts should be read in conjunction with the attached notes. |
|
|
|
MOHAMMAD BASHEER JANMOHAMMED |
|
M. ASHRAF KOTHARI |
|
|
CHAIRMAN |
|
DIRECTOR |
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED 30 JUNE 2001 |
|
|
|
2001 |
2000 |
|
|
(Rupees
'000) |
|
|
| CASH
FLOWS FROM OPERATING ACTIVITIES |
|
| Profit
before taxation |
|
3,462 |
17,612 |
|
|
| Adjustment for: |
|
| Reversal
of provision for diminution in value of |
|
| marketable
securities |
|
(6,455) |
(17,087) |
|
|
------------------ |
------------------ |
|
|
(2,993) |
525 |
|
|
| Changes
in Operating assets/liabilities |
|
|
| (Increase)/Decrease
in current assets |
|
| Marketable
securities |
|
(720) |
(14,707) |
|
| Advances,
prepayments & other receivables |
|
455 |
(199) |
|
|
|
|
| Increase/(Decrease)
in current liabilities |
|
|
|
| Accrued
expenses |
|
242 |
73 |
|
| Due
to investment adviser |
|
799 |
167 |
|
|
------------------ |
------------------ |
|
|
776 |
(14,666) |
|
| Taxes paid |
|
(256) |
(240) |
|
