| Tri-Star Mutual Fund Limited |
|
|
|
|
|
|
|
|
|
|
| Annual
Report 1999 |
|
|
|
| Company
Information |
|
|
| Board
of Directors: |
Mr. Mohammed Ahmad Ismail |
Chairman |
|
|
|
Mr. Habib Jamal |
|
Director |
|
|
|
Mr. Rashid Ahmad |
Director |
|
|
|
Mr. Jawed Ahmad Siddiqui |
Director |
|
|
|
Mr. Asad Ahmad |
Director |
|
|
|
Mr. Jawed Dost Mohammad |
Director |
|
|
|
Mr. Tahir Ahmad |
Chief Executive |
|
|
|
|
|
| Investment
Adviser: |
Tri-Star Investments
(Pvt) Ltd |
|
|
|
F/498, S.I.T.E., |
|
|
|
Karachi. |
|
|
| Auditors: |
|
Hyder Bhimji & Co. |
|
|
|
Chartered Accountants |
|
|
|
|
| Bankers: |
|
Bank AI-Habib Ltd. |
|
|
|
Citibank N.A |
|
|
|
Habib Bank Ltd. |
|
|
|
|
| Registrar
& Certificate |
F/498, S.I.T.E., |
|
| Transfer
Office: |
Karachi-75700, |
|
|
|
|
| Registered
Office: |
F/498, S.I.T.E., |
|
|
|
Karachi-75700. |
|
|
|
| Notice
of Meeting |
|
|
| Notice
is hereby given that the Seventh Annual General Meeting of TRI-STAR MUTUAL
FUND LTD., will |
|
| be
held on Friday, 31st December, 1999 at F/498, S.I.T.E., Karachi at 9.30 A.M.
to transact the following |
|
| business: |
|
|
| 1.
Recitation from the Holy Quran. |
|
|
|
|
|
|
| 2.
To receive, consider and adopt the annual audited accounts for the year ended
30th June, 1999 |
|
| together
with the Directors' Report and Auditors' Report thereon. |
|
|
|
|
| 3.
To appoint Auditors of the Company and to fix their remuneration. The present
Auditors M/s. |
|
| Hyder
Bhimji & Co. Chartered Accountants retire and being eligible, offer
themselves for |
|
| reappointment. |
|
|
|
|
|
|
| 4.
To transact any other business with the permission to the Chair. |
|
|
|
|
|
|
|
By and on behalf of the Board |
|
|
|
|
|
| Dated:
9th December, 1999 |
|
|
|
| Place: Karachi. |
|
Fund Secretary |
|
|
| NOTES: |
|
|
| 1.
The Certificate Transfer books of the Fund will remain closed from 23rd
December, 1999 to 31st |
|
| December,
1999 (both days inclusive). |
|
|
|
|
|
|
| 2.
A member entitled to attend the Annual General Meeting is entitled to appoint
a proxy and vote |
|
| in
his place at the meeting. Proxies in order to be effective must be received
at the registered |
|
| office
of the Fund at F/498, S.I.T.E, Karachi duly stamped, signed and witnessed not
later than |
|
| 48
hours before the meeting. |
|
|
|
|
|
|
| 3.
Members are requested to notify any change in their addresses immediately. |
|
|
|
| Directors'
Report |
|
|
| The
Board of Directors have pleasure in presenting the seventh Annual Report
together with the audited |
|
| accounts
for the year ended June 30, 1999. |
|
|
| FINANCIAL
RESULTS: |
|
| During
the period under review, your Fund earned Rs 328.337 as Dividend Income and
capital gain of |
|
| Rs.64,400
occurred in investments. The market conditions remain depressed during the
current year as |
|
| well.
The Fund followed the policy of staying at the side line during first half of
the year. The Karachi Stock |
|
| Exchange
100 index stood at 1055 points on June 30, 1999 as compared to 880 points on
June 30, 1998 |
|
| i.e.
increase of 175 points.' After meeting administrative and other expenses the
net profit before taxation |
|
| came
to Rs.37,791. The investment policy of the fund was directed towards low
level of portfolio turnover |
|
| As
your Fund was floated at the time when stock market was bullish and KSE 100
Index was at around |
|
| 2,600
points, the portfolio investment was made at the then prevailing market rates
which have come |
|
| down
gradually over a period of time. It is prudent to wait for market to rebound
and achieve greater |
|
| heights
than ever before. |
|
|
| The
financial results are summarised as follows: |
|
|
|
|
1999 |
1998 |
|
|
|
|
(Rupees) |
(Rupees) |
|
|
|
|
| Income |
|
|
328,337 |
518,373 |
|
| Capital
Gain/(Loss) |
|
|
64,400 |
(809,574) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
392.74 |
(291,201) |
|
| Less:
Operating Expenses |
|
|
354,946 |
949,197 |
|
|
|
|
------------------ |
------------------ |
|
| Profit/(Loss)
for the Year |
|
|
37,791 |
(1,240,398) |
|
|
|
|
========== |
========== |
|
|
| The
Board of Directors have not recommended any dividend for the year. |
|
|
| MARKET
REVIEW AND FUTURE OUTLOOK |
|
| The
year began with negative sentiments as the market had gone down by approx 44%
from June 30, |
|
| 1997
to June 30, 1998. The nuclear test by Pakistan in May, 1998 in response to
India's nuclear test |
|
| resulted
in imposition of economic sanctions, coupled with IPP Government tussle and
adverse economic |
|
| conditions
affected the stock market very badly. The affect of recent change of PML
Government on stock |
|
| market
is yet to be seen. |
|
|
| We
hope complete lifting of economic sanction, resolution of IPP-Government
tussle and economic |
|
| reforms
by Government will improve the economic conditions and the stock market. |
|
|
| THE
YEAR 2000 COMPLIANCE OF COMPUTER SYSTEM |
|
| The
management is aware of the computer software problem known as "The
Millennium Bug", and has |
|
| made
necessary arrangements to be ready for the year 2000. |
|
|
| AUDITORS |
|
| The
present auditors M/s. Hyder Bhimji & Co., are due for retirement and
being eligible offer themselves |
|
| for
re-appointment. |
|
|
| ACKNOWLEDGMENTS |
|
| Your
directors would like to record their appreciation of the dedication and hard
work of the staff and |
|
| officers
of the Fund. |
|
|
|
|
|
By and on behalf of the Board |
|
|
|
|
TAHIR AHMAD |
|
| Karachi:
December 9, 1999. |
|
Chief Executive |
|
|
|
|
| Auditors'
Report to the Certificate Holders |
|
|
| We
have examined the annexed balance sheet of Tri-Star Mutual Fund Ltd., as at
June 30, 1999 and the |
|
| related
Profit and Loss Account and the Statement of Changes in Financial Position
(Cash Flow |
|
| Statement)
together with the Notes to the accounts for the year then ended. Our
examination was made |
|
| in
accordance with the generally, accepted auditing procedures as were
considered necessary in the |
|
| circumstances
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 purpose of audit and after
due verification thereof, |
|
| subject
to the annexed note 6.3, we report that: |
|
|
| a)
In our opinion proper books of accounts have been kept by the Company as
required by the |
|
| Companies
Ordinance, 1984 and Rule 16 of the Investment Companies and Investment
Adviser's |
|
| Rules 1971. |
|
|
|
|
|
|
| b)
In our opinion: |
|
|
|
|
| i.
The Balance Sheet and Profit & 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 Investment Companies and Investment Adviser's 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 was for the purpose of the Company's business. |
|
|
|
|
| iii.
the business conducted, investments made and expenditure incurred during the
year |
|
| were
in accordance with Investment Policy of the company and Investment Companies |
|
| and
Investment Adviser's Rules, 1971. |
|
|
|
|
|
| iv.
the company has not contravened the provisions of Rule 8 of the Investment
Companies |
|
| and
Investment Adviser's Rules, 1971; and |
|
|
|
| c)
in our opinion and to the best of our information and according to the
explanation given to us, the |
|
| Balance
Sheet and the Profit & Loss Account and the Cash Flow Statement together
with the |
|
| Notes
forming part thereof give the information required by the Companies
Ordinance, 1984 and |
|
| Investment
Companies and Investment Adviser's Rules, 1971 in the manners so required and |
|
| respectively
give a true and fair view of the state of the Company's affairs as at June
30, 1999 |
|
| and
of the profit and changes in financial position for the year ended on that
date; |
|
|
|
|
| d)
in our opinion, no Zakat was deductible at source under the Zakat and Ushr
Ordinance, 1980. |
|
|
|
|
|
S/d- |
|
|
|
HYDER BHIMJI & CO. |
|
| Karachi:
December 8, 1999. |
|
Chartered Accountants |
|
|
|
|
| Balance
Sheet As at June 30, 1999 |
|
|
|
|
1999 |
1998 |
|
|
Note |
(Rupees) |
(Rupees) |
|
|
|
|
| CAPITAL
& RESERVES |
|
|
|
|
|
|
|
| AUTHORISED
CAPITAL |
|
|
|
| 20,000,000
Certificates of Rs. 10/- each |
|
|
200,000,000 |
200,000,000 |
|
|
|
|
========== |
========== |
|
| ISSUED,
SUBSCRIBED AND PAID-UP CAPITAL |
|
|
| 5,000,000
Certificates of Rs. 10/- each fully paid |
|
|
| issued for cash |
|
|
50,000,000 |
50,000,000 |
|
| Accumulated
Loss |
|
(8,657,279) |
(8,695,070) |
|
|
|
|
------------------ |
------------------ |
|
|
|
41,342,721 |
41,304,930 |
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
| Current
maturity of deferred Expenditure |
|
3.1 |
-- |
554,664 |
|
| Due
to investment adviser-An Associated Company |
4 |
292,464 |
226,574 |
|
| Trade
creditors, accrued expenses and other liabilities |
5 |
196,980 |
147,980 |
|
| Provision
for taxation |
|
|
3,135 |
3,135 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
492,579 |
932,353 |
|
|
|
|
------------------ |
------------------ |
|
|
|
41,835,300 |
42,237,283 |
|
|
|
|
========== |
========== |
|
|
| INVESTMENTS
- Marketable Securities |
|
6 |
41,713,233 |
42,040,808 |
|
|
|
|
|
|
| CURRENT
ASSETS |
|
|
|
|
| Advances,
Pre-payments and other receivables |
|
7 |
109,921 |
141,645 |
|
| Cash
and bank balances |
|
8 |
12,146 |
54,830 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
122,067 |
196,475 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
41,835,300 |
42,237,283 |
|
|
|
|
========== |
========== |
|
| NOTE:
The annexed notes form an integral part of these accounts. |
|
|
|
TAHIR AHMAD |
|
ASAD AHMAD |
|
| KARACHI:
December 7, 1999. |
|
Chief Executive |
|
Director |
|
|
|
|
|
|
|
|
|
|
| Profit
and Loss Account |
|
| For
the year ended June 30, 1999 |
|
|
|
|
1999 |
1998 |
|
|
Note |
(Rupees) |
(Rupees) |
|
|
|
|
| INCOME |
|
9 |
328,337 |
518,373 |
|
| CAPITAL
GAIN/(LOSS) |
|
10 |
64,400 |
(809,574) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
392,737 |
(291,201) |
|
| Less:
OPERATING EXPENSES |
|
|
|
| Administrative |
|
11 |
73,750 |
626,314 |
|
| Financial |
|
12 |
36,481 |
96,315 |
|
| Remuneration
of Investment Adviser |
|
4.1 |
244,715 |
226,568 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
354,946 |
949,197 |
|
|
|
|
------------------ |
------------------ |
|
| Profit/(Loss)
for the year |
|
37,791 |
(1,240,398) |
|
| Accumulated
(Loss) brought forward |
|
(8,695,070) |
(7,454,672) |
|
|
|
|
------------------ |
------------------ |
|
| Accumulated
(Loss) carried forward |
|
|
(8,657,279) |
(8,695,070) |
|
|
|
|
========== |
========== |
|
|
| NOTE:
The annexed notes form an integral part of these accounts. |
|
|
|
TAHIR AHMAD |
|
ASAD AHMAD |
|
|
Chief Executive |
|
Director |
|
|
| KARACHI:
December 7, 1999. |
|
|
|
| STATEMENT
OF CHANGES IN FINANCIAL POSITION |
|
| Cash
Flow Statement |
|
| For
the year ended June 30, 1999 |
|
|
|
|
|
1999 |
1998 |
|
|
|
|
(Rupees) |
(Rupees) |
|
|
|
|
| Cash
Flow From Operating Activities |
|
|
| Profit/(Loss)
before taxation |
|
37,791 |
(1,240,398) |
|
| Add:
Item not involving movement of fund: |
|
|
|
|
|
| Amortization
of deferred expenditure |
|
|
-- |
554,664 |
|
| Financial
Expenses |
|
|
36,481 |
96,315 |
|
| Profit/Loss
on sale of investment |
|
|
(64,400) |
809,574 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
9,872 |
220,155 |
|
| Less:
Financial Expenses paid |
|
|
(96,465) |
(130,608) |
|
|
|
|
------------------ |
------------------ |
|
|
|
(86,953) |
89,547 |
|
|
|
|
|
|
| (Increase)/Decrease
in current assets |
|
|
31,724 |
(31,724) |
|
| Increase/(Decrease)
in current liabilities |
|
|
174,874 |
(726,355) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
120,005 |
(668,532) |
|
|
|
|
========== |
========== |
|
|
|
|
| Investing
Activities |
|
|
|
| Purchase
of Investments |
|
|
(296,525) |
(1,482,450) |
|
| Sale
proceed of Investments |
|
|
688,500 |
2,726,926 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
391,975 |
1,244,476 |
|
|
|
|
========== |
========== |
|
|
|
|
| Financing
Activities |
|
|
|
| Re-payment
of Deferred Expenditure |
|
|
(554,664) |
(554,660) |
|
|
|
|
------------------ |
------------------ |
|
| Net Cash Flow |
|
|
(42,684) |
21,284 |
|
| Cash
and Bank Balance at the beginning of the year |
|
54,830 |
33,546 |
|
|
|
|
------------------ |
------------------ |
|
| Cash
and Bank Balance at the end of the year |
|
|
12,146 |
54,830 |
|
|
|
|
========== |
========== |
|
|
|
| Notes
to the Accounts |
|
| For
the year ended June 30, 1999 |
|
|
| 1.
STATUS AND NATURE OF BUSINESS |
|
|
| The
Fund was incorporated as public limited Company under Investment Companies
and |
|
| Investment
Adviser's Rules, 1971. The Fund has entered into an agreement with an
associated |
|
| company,
Tri-Star Investments (Pvt) Ltd., to act as its "Investment
Adviser". The Fund is listed |
|
| on
Karachi and Islamabad Stock Exchanges. |
|
|
|
| 2.
ACCOUNTING POLICIES |
|
|
|
| The
significant accounting policies are summarized below: |
|
|
| 2.1
The accounts of the Company are prepared under the historical cost
convention. |
|
|
|
|
| 2.2
Investments-Marketable Securities |
|
|
|
| i.
Investments are valued at cost. |
|
|
|
| ii.
Profit or loss on sale of Investment is accounted for in the year in which it
arise. |
|
| ii.
Full provision is made against permanent diminution in the value of
investment |
|
|
| 2.3
Revenue Recognition |
|
|
| i.
Dividend Income is recorded at the time of the closure of share transfer
books of the |
|
| company
declaring the dividend and is shown net of zakat deducted. |
|
|
| ii.
Sales and purchases of securities are recognised on the date of contract.
Capital gain |
|
| on
sale of investment is taken to income of the period in which it arises. |
|
|
| 2.4
Deferred Expenditure |
|
| The
expenditure incurred on the incorporation and on the issue of shares to
public, of the |
|
| investment
company, has been deferred and is being amortized over a period of five
years. |
|
|
|
|
1999 |
1998 |
|
|
|
(Rupees) |
(Rupees) |
|
|
|
|
|
| 3.
DEFERRED EXPENDITURE PAYABLE |
|
|
| Balance
on 1st July |
|
|
554,664 |
1,109,324 |
|
|
|
|
| Less:
Paid during the year |
|
|
554,664 |
554,660 |
|
| Transferred
to current maturity |
|
3.1 |
-- |
554,664 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
-- |
1,109,324 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
-- |
-- |
|
|
|
|
========== |
========== |
|
|
| The
deferred expenditure is re-imbursable to the Investment Adviser over a period
of 5 years with |
|
| interest
@10% per annum. |
|
|
|
|
|
|
|
1999 |
1998 |
|
|
|
|
|
(Rupees) |
(Rupees) |
|
|
|
|
| 4.
DUE TO INVESTMENT ADVISER |
|
|
| TRI-STAR
INVESTMENTS (PVT) LTD. |
|
|
| AN
ASSOCIATED COMPANY |
|
|
|
| Opening
Balance |
|
226,574 |
1,018,635 |
|
| Add:
2 Percent of net assets |
|
244,715 |
226,568 |
|
| Add:
Interest on deferred expenditure |
|
36,181 |
96,165 |
|
|
|
------------------ |
------------------ |
|
|
|
507,470 |
1,341,368 |
|
| Less:
Paid during the year |
|
215,006 |
1,114,794 |
|
|
|
------------------ |
------------------ |
|
|
|
292,464 |
226,574 |
|
|
|
|
|
|
========== |
========== |
|
|
|
|
| 4.1
The remuneration of investment adviser at 2 percent of net assets of the
company as at the |
|
| end
of its year of accounts in term of clause 11(a) of the Investment Company and |
|
| Investment
Adviser's Rules, 1971 has been determined as follows: |
|
|
|
|
|
|
| ASSETS |
|
|
|
|
|
|
|
|
|
| Marketable
Securities at market value |
|
12,606,283 |
12,064,273 |
|
| Advances,
Pre-payments and other Receivables |
|
109,921 |
141,645 |
|
| Cash
and Bank Balances |
|
12,146 |
54,830 |
|
|
|
------------------ |
------------------ |
|
|
|
12,728,350 |
12,260,748 |
|
|
|
|
========== |
========== |
|
|
|
|
|
| LIABILITIES |
|
|
|
| Deferred
Expenditure payable |
|
-- |
554,664 |
|
| Due
to Investment Adviser-An associated company |
|
292,464 |
226,574 |
|
| Trade
Creditors, accrued expenses and other liabilities |
|
196,980 |
147,980 |
|
| Provision
for Taxation |
|
3,135 |
3,135 |
|
|
|
------------------ |
------------------ |
|
|
|
492,579 |
932,353 |
|
|
|
------------------ |
------------------ |
|
| Net Assets |
|
12,235,771 |
11,328,395 |
|
|
|
------------------ |
------------------ |
|
| 2
percent of net assets |
|
244,715 |
226,568 |
|
|
|
|
========== |
========== |
|
|
|
| 5.
TRADE CREDITORS, ACCRUED EXPENSES AND |
|
| OTHER
LIABILITIES |
|
|
|
| Income
Tax Deducted at source |
|
8,913 |
1,413 |
|
| Audit Fee |
|
19,000 |
7,500 |
|
| Custodian Fee |
|
164,067 |
134,067 |
|
| Others |
|
5,000 |
5,000 |
|
|
|
------------------ |
------------------ |
|
|
|
|
196,980 |
147,980 |
|
|
|
|
========== |
========== |
|
|
|
|
| 6.
INVESTMENTS - Marketable Securities |
|
| These
Securities are shares/certificates of Rs. 10/- each. |
|
|
|
Number of Shares |
|
Balance as at June 30, 1999 |
|
Percentage in Relation to |
|
|
| Name
of Company |
|
Balance As |
Purchases |
Bonus |
Sales |
Number |
At Cost |
At Market |
Own |
Investee
Companies |
|
At July 1 |
|
shares |
|
of |
(Rupees |
(Rupees) |
Assets |
Paid-up |
Number of |
|
1998 |
|
Shares |
|
6.1 |
|
Capital |
Shares |
|
|
6.2 |
|
| FINANCIAL
COMPANIES |
|
| MUTUAL
FUNDS AND BANKS ETC: |
|
| Askari
Bank Ltd. |
|
4,013 |
-- |
-- |
-- |
4,013 |
124,660 |
48,357 |
0.30 |
0.01 |
0.004 |
| Askari
Leasing Ltd: |
|
24,000 |
-- |
-- |
-- |
24,000 |
457,143 |
206,400 |
1.09 |
0.19 |
0.100 |
| Bank
Al-Habib Ltd. |
|
4,000 |
-- |
3,712 |
-- |
7,712 |
152494 |
138,816 |
0.36 |
0.04 |
0.015 |
| Citi
Corp. Investment Bank Ltd |
|
12,000 |
-- |
-- |
-- |
12,100 |
986104.00 |
163,350 |
2.36 |
0.99 |
0.121 |
| Foreign
Exchange Bearer Certificate (7.3) |
3,600,000 |
-- |
-- |
-- |
3,600,000 |
3,933,000 |
3,708,000 |
9.40 |
-- |
-- |
| First
Tri-Star Modaraba |
|
412,500 |
-- |
-- |
-- |
412,500 |
4,886,250 |
515,625 |
11.68 |
3.47 |
2.930 |
| LTV
Capital Modaraba |
|
137,500 |
-- |
-- |
137,500 |
-- |
-- |
-- |
-- |
-- |
-- |
| Muslim
Commercial Bank Ltd |
|
16,760 |
-- |
-- |
-- |
16,760 |
1036874 |
341,904 |
2.48 |
0.06 |
0.009 |
| Punjab
Modaraba |
|
40,000 |
-- |
-- |
40,000 |
-- |
-- |
-- |
-- |
-- |
-- |
| Second
Tri-Star Modaraba |
|
468,000 |
-- |
-- |
-- |
468,000 |
4812000 |
491,400 |
11.50 |
3.74 |
3.636 |
| Soneri Bank Ltd. |
|
13,380 |
-- |
1,338 |
-- |
14,718 |
496860.00 |
179,560 |
1.19 |
0.10 |
0.029 |
| Union
Leasing Ltd. |
|
4,500 |
-- |
675 |
-- |
5,175 |
98975 |
15,525 |
0.24 |
0.05 |
0.025 |
|
| TEXTILE
SPINNING; |
|
| Faisal
Spinning Mills Ltd. |
|
74,000 |
-- |
-- |
-- |
74,000 |
2,206,265 |
728,900 |
5.27 |
2.21 |
0.740 |
|
|
|
|
|
|
| TEXTILE
COMPOSITE: |
|
| Crescent
Textile Mills Ltd. |
|
26,647 |
-- |
1,332 |
-- |
27,979 |
1,247,946 |
225,231 |
