| Annual Report 1996 |
|
|
|
|
|
|
|
|
| Tri-Star
Mutual Fund Ltd. |
|
|
| Company
Information |
|
|
| Board
of Directors: |
|
| Mr.
Mohammed Ahmad Ismail |
|
Chairman |
|
| Mr.
Habib Jamal |
|
|
Director |
|
| Mr.
Rashid Ahmad |
|
|
Director |
|
| Mr.
Jawed Ahmed 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-75700. |
|
|
| Auditors: |
|
| Hyder
Bhimji & Co. |
|
| Chartered
Accountants |
|
|
| Bankers: |
|
| Bank
AI-Habib Ltd. |
|
| Citibank
N.A. |
|
| Habib
Bank Ltd. |
|
|
|
|
| Registrar
& Certificate |
|
| Transfer
Office: |
|
| Noble
Computer Services (Pvt) Ltd. |
|
| I.I.
Chundrigar Road, Karachi-74200. |
|
|
|
| Registered
Office: |
|
| F/498,
S.I.T.E., |
|
| Karachi-75700. |
|
|
| Notice
of Meeting |
|
| Notice
is hereby given that the Fourth Annual General Meeting of TRI-STAR MUTUAL
FUND LTD., |
|
| will
be held on Tuesday, 31st December, 1996 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 read and confirm the minutes of Extra Ordinary General Meeting, held on
8th |
|
| September,
1996 |
|
|
|
|
| 3.
To receive, consider and adopt the annual audited accounts for the year ended
30th June, |
|
| 1996
together with the Directors' Report and Auditors' Report thereon. |
|
|
| 4.
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 re- |
|
| appointment. |
|
|
| 5.
To transact any other business with the permission of the Chair. |
|
|
| By
and on behalf of the Board |
|
|
| Company
Secretary |
|
|
| Date:
9th December, 1996 |
|
| Place:
Karachi |
|
|
| NOTES: |
|
| 1.
The Shares Transfer Books of the Company will remain closed from 23rd
December, 1996 to |
|
| 31st
December, 1996 (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 office of the |
|
| share
registrar M/s. Noble Computer Services (Pvt) Ltd., 2nd Floor, AI-Manzoor
Building, Dr. |
|
| Ziauddin
Ahmed Road, 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 is pleased to present the 4th Annual Report together with
the audited |
|
| accounts
for the year ended June 30, 1996. |
|
|
|
| FINANCIAL
RESULTS: |
|
| During
the period under review, your Fund earned Rs. 627,019 as Dividend Income and
Profit on |
|
| Deposits.
However Rs. (2,362,979) capital loss occured in investments as the market
conditions |
|
| remained
depressed during the current year as well. The Karachi Stock Exchange share
price index |
|
| stood
at 1703 points on June 30, 1996 as compared to 1611 points as on June 30,
1995 whereas |
|
| during
the year it went down below 1400 points. After meeting administrative and
other expenses the |
|
| net
loss before taxation came to Rs. 2.969 million. |
|
|
| The
financial results are summerised as follows: |
|
|
|
1996 |
1995 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
|
| Income |
|
|
627,019 |
1,430,616 |
|
| Capital
Gain/Loss |
|
|
(2,362,979) |
(2,403,617) |
|
|
|
----------- |
----------- |
|
|
|
(1,735,960) |
(973,001) |
|
|
|
|
|
| Less Operating Expenses |
|
|
1,234,480 |
1,408,333 |
|
|
|
----------- |
----------- |
|
| (Loss)
before taxation |
|
|
(2,970,440) |
(2,381,334) |
|
|
|
|
|
| Provision
for Taxation |
|
|
3,135 |
- |
|
|
|
|
|
|
----------- |
----------- |
|
| (Loss)
after taxation |
|
|
(2,973,575) |
(2,381,334) |
|
|
|
|
|
| Prior
Year Adjustments |
|
|
3958 |
- |
|
|
|
|
|
----------- |
----------- |
|
| (Loss)
for the year |
|
|
(2,969,617) |
(2,381,334) |
|
|
|
|
|
============ |
============ |
|
|
| The
Board of Directors have not recommended any dividend for the year. |
|
|
| MARKET
REVIEW AND FUTURE OUTLOOK |
|
| The
market remained depressed during the period under review and market
conditions were |
|
| unfavorable
for investment. The market failed to show a definite direction and continued
to suffer |
|
| from
declining trend. |
|
|
| The
KSE 100 price index went down below 1400 mark during the year. Although it
rose and stood at |
|
| 1703
points as on June 30, 1996, it does not reflect the true picture of the
market, as it now includes |
| some
of highly capitalised shares which are subject to speculative activities.
With the increase in |
|
| speculative
activities the index rises, however, it drops again after a short interval.
The index stood at |
| 1486
points as on December 1, 1996. |
|
|
| Major
factors responsible for depressed stock market conditions are as follows
:- |
|
|
| Economic
uncertainties. |
|
|
| Crisis
in textile and other sectors. |
|
|
| Lack
of interest of foreign investors due to economic and political uncertainties. |
|
|
| Slow
down of industrial activity. |
|
|
| As
soon as above conditions improve the market will revive and better results
could be achieved. |
|
|
| AUDITORS |
|
| The
present auditors M/s. Hyder Bhimji & Co., are due for retirement and
being eligible offer them |
|
|
|
| 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 |
|
| Chief
Executive |
|
|
|
| Karachi'
December 8, 1996. |
|
|
|
| Auditors'
Report to the Certificate Holders |
|
| We
have examined the annexed balance sheet of TRI-STAR MUTUAL FUND LTD., as at
June 30, |
|
| 1996
and the related Profit and Loss Account and the Cash Flow Statement together
with the Notes |
|
| to
the accounts for the year then ended. Our examination was made in accordance
with the general- |
|
| ly,
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 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 the 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
explanations 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 Cmpany's affairs as at June 30, 1996 and of the loss and the 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. |
|
|
|
| Sd/- |
|
| HYDER
BHIMJI & CO. |
|
| Chartered
Accountants |
|
|
| Balance
Sheet As at |
|
| June
30, 1996 |
|
|
|
|
|
|
Note |
1996 |
1995 |
|
|
|
|
|
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 |
|
50,000,000 |
50,000,000 |
|
| fully
paid issued for cash |
|
|
|
| Accumulated
Loss |
|
|
|
(5,350,951) |
(2,381,334) |
|
|
|
|
|
------------ |
------------ |
|
|
|
|
|
44,649,049 |
47,618,666 |
|
| DEFERRED
EXPENDITURE PAYABLE |
|
3 |
1,109,324 |
1,663,984 |
|
|
|
|
|
|
| CURRENT
LIABILITIES |
|
| Current
maturity of Deferred Expenditure |
3.1 |
554,660 |
554,660 |
|
|
| Due to investment adviser an |
|
|
|
|
|
|
| associated
company |
|
4 |
603,547 |
795,852 |
|
|
| Trade
Creditors, accrued expenses |
|
|
|
|
|
| and other liabilities |
|
5 |
87,317 |
53,025 |
|
|
| Provision
for taxation |
|
|
23,135 |
20,000 |
|
|
|
|
|
1,268,659 |
1,423,537 |
|
|
|
------------ |
----------- |
|
|
|
47,027,032 |
1,423,537 |
|
|
|
============ |
============ |
|
|
|
| DEFERRED
EXPENDITURE |
|
6 |
1,109,324 |
1,663,984 |
|
|
|
|
|
|
|
| INVESTMENTS
- Marketable Securities |
7 |
45,893,578 |
48,406,885 |
|
|
|
|
|
|
|
| CURRENT
ASSETS |
|
|
| Advances,
pre-payments & other receivable |
8 |
327 |
608,235 |
|
| Cash
& bank balances |
|
9 |
23,803 |
27,083 |
|
|
|
|
|
------------ |
----------- |
|
|
|
|
24,130 |
635,318 |
|
|
|
|
|
|
|
|
|
|
------------ |
----------- |
|
|
|
|
47,027,032 |
50,706,187 |
|
|
|
|
============ |
============ |
|
|
|
| NOTE:
The annexed notes form an integral part of these accounts. |
|
|
| KARACHI-December
8, 1996. |
|
|
|
| Profit
and Loss Account |
|
| For
the year ended June 30, 1996 |
|
|
Note |
1996 |
1995 |
|
|
|
Rupees |
Rupees |
|
|
|
| INCOME |
|
|
10 |
627,019 |
1,430,616 |
|
| CAPITAL
(LOSS) |
|
|
11 |
(2,362,979) |
(2,403,617) |
|
|
|
|
|
------------ |
----------- |
|
|
|
|
(1,735,960) |
(973,001) |
|
|
| Less:
OPERATING EXPENSES |
|
| Administrative |
|
|
12 |
628,270 |
612,479 |
|
| Financial |
|
|
13 |
204,874 |
251,686 |
|
| Remuneration
of Investment Adviser |
4.1 |
401,336 |
544,168 |
|
|
|
|
|
------------ |
----------- |
|
|
|
|
1,234,480 |
1,408,333 |
|
|
|
|
|
|
|
|
------------ |
----------- |
|
| (Loss)
before taxation |
|
(2,970,440) |
(2,381,334) |
|
|
|
|
| Provision
for taxation |
|
3,135 |
- |
|
|
|
|
|
------------ |
----------- |
|
| (Loss)
after taxation |
|
(2,973,575) |
(2,381,334) |
|
|
|
|
|
|
| Prior
year adjustment |
|
3,958 |
- |
|
|
|
|
|
------------ |
----------- |
|
|
|
|
(2,969,617) |
(2,381,334) |
|
|
|
|
| Accumulated
Loss brought forward |
|
(2,381,334) |
- |
|
|
|
|
|
------------ |
----------- |
|
| Accumulated
Loss carried forward |
|
(5,350,951) |
(2,381,334) |
|
|
============ |
============ |
|
|
|
| NOTE:
The annexed notes form an integral part of these accounts. |
|
|
| KARACHI:
December 8, 1996. |
|
|
| Notes
to the Accounts |
|
| For
the year ended June 30, 1996. |
|
|
| 1.
STATUS AND NATURE OF BUSINESS |
|
| The
Company was incorporated as public limited company under Companies Ordinance,
1984. |
|
| and
was registered as an investment company under the Investment Companies and |
|
| Investment
Adviser's Rules, 1971. The Company has entered into an agreement with an
asso- |
|
| ciated
company, Tri-Star Investment (Pvt) Ltd., to act as is "Investment
Adviser". The company |
|
| 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 Investments is accounted for in the year in which
it arise. |
|
| (iii)
Full provision is made against permanent dimunition in the value of
investments |
|
| i.e.
for a period not less than 5 years. |
|
|
|
|
| 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. |
|
|
|
Note |
1996 |
1995 |
|
|
|
|
|
Rupees |
Rupees |
|
| 3.
DEFERRED EXPENDITURE PAYABLE |
|
| Balance
on 1st July |
|
2,218,644 |
2,773,304 |
|
|
|
| Less
: Paid during the year |
|
554,660 |
554,660 |
|
| Transferred
to current maturity |
|
3.1 |
554,660 |
554,660 |
|
|
------------ |
------------ |
|
|
|
1,109,320 |
1,109,320 |
|
|
|
|
------------ |
------------ |
|
|
|
1,109,324 |
1,663,984 |
|
|
|
============ |
============ |
|
|
| The
deferred expenditure is re-imbursable to the Investment Adviser over a period
of 5 years |
|
| with
Interest @ 10% per annum. |
|
|
|
Note |
1996 |
1995 |
|
|
|
|
Rupees |
Rupees |
|
|
| 4.
DUE TO INVESTMENT ADVISER |
|
| TRI-STAR
INVESTMENTS (PVT) LTD. |
|
| AN
ASSOCIATED COMPANY |
|
| 2
Percent of net assets |
|
|
401,336 |
544,108 |
|
| Add:
Interest on deferred expenditure |
|
202,211 |
251,684 |
|
|
------------ |
------------ |
|
|
|
|
603,547 |
795,852 |
|
|
|
============ |
============ |
|
|
| 4.1
The remuneration of the investment adviser at 2 percent of the net assets of
the compa- |
|
| ny
as at the end of its year of accounts in term of clause 1 l(a) of the Company
and |
|
| Investment
Adviser's Rules, 1971 has been determined as follows: |
|
|
| ASSETS |
|
| Deferred
Expenditures |
|
1,109,324 |
1,663,984 |
|
| Marketable
securities at market value |
|
21,311,324 |
27,996,626 |
|
| Advances,
Pre-Payments and other Receivables |
327 |
608,235 |
|
| Cash
& Bank Balances |
|
23,803 |
27,083 |
|
|
|
|
------------ |
------------ |
|
|
|
|
22,444,778 |
30,295,928 |
|
|
============ |
============ |
|
|
|
| LIABILITIES |
|
| Deferred
Expenditure payable |
|
1,663,984 |
2,218,644 |
|
| Due
to Investment Adviser-An associated company |
603,547 |
795,852 |
|
| Trade
Creditors, accrued expenses & other liabilities |
87,317 |
53,025 |
|
| Provision
for taxation |
|
23,135 |
20,000 |
|
|
|
|
------------ |
------------ |
|
|
|
|
2,377,983 |
3,087,521 |
|
|
|
|
|
|
|
|
|
------------ |
------------ |
|
| Net
Assets |
|
|
20,066,795 |
27,208,407 |
|
|
|
|
|
|
|
|
|
------------ |
------------ |
|
| 2
percent of net Assets |
|
401,336 |
544,168 |
|
|
============ |
============ |
|
|
|
|
Note |
1996 |
1995 |
|
|
|
|
Rupees |
Rupees |
|
| 5.
TRADE CREDITORS, ACCRUED EXPENSES AND |
|
| OTHER
LIABILITIES |
|
| Trade
Creditors |
|
|
-- |
3,958 |
|
| Audit
fee |
|
|
8,250 |
5,000 |
|
| Custodian
fee |
|
|
74,067 |
44,067 |
|
| Others |
|
|
5,000 |
-- |
|
|
|
|
------------ |
------------ |
|
|
|
|
87,317 |
53,025 |
|
|
============ |
============ |
|
|
|
|
| 6.
DEFERRED EXPENDITURE |
|
| Balance
as on 1st July 1995 |
|
1,663,984 |
2,214,963 |
|
| Less
: Amortized during the year |
|
554,660 |
550,979 |
|
|
|
|
------------ |
------------ |
|
|
|
|
1,109,324 |
1,663,984 |
|
|
============ |
============ |
|
|
|
| 7.
INVESTMENTS-MARKETABLE SECURITIES |
|
|
|
| These
securities are shares/certificates of Rs. 10/- each. |
|
|
|
|
|
|
|
NUMBER OF SHARES |
|
BALANCE AS AT JUNE 30,
1996 |
|
|
|
|
|
|
BALANCE |
Purchases |
Bonus |
Sales |
Number |
At Cost |
At Market |
| NAME
OF COMPANY |
|
AS AT |
|
Shares |
|
of |
(Rupees} |
(Rupees} |
|
|
|
JULY 1 |
|
|
Shares |
|
|
|
|
1995 |
|
|
| FINANCIAL
COMPANIES, |
|
| MUTUAL
FUNDS AND BANKS: |
|
|
|
|
| Askari
Bank Ltd. |
|
17,250 |
7,500 |
1,735 |
7,500 |
18,985 |
711,964
|
807,520 |
| Askari
Leasing Ltd. |
|
17,500 |
10,000 |
-- |
7,500 |
20,000 |
457,143 |
395,000 |
| Bank
AI-Habib Ltd. |
|
55,000 |
-- |
-- |
15,000 |
40,000 |
1,677,294 |
1,240,000 |
| Citi
Corp. Investment Bank Ltd. |
12,100 |
-- |
-- |
-- |
12,100 |
986,104
|
338,800 |
| First
Leasing Corp. Ltd. |
|
10,000 |
2,500 |
-- |
2,500 |
10,00 |
292,000 |
110,000 |
| First
Tri-Star Modaraba |
|
412,500 |
-- |
-- |
-- |
412,50 |
4,886,250 |
1,237,500 |
| Muslim
Commercial Bank Ltd. |
18,687 |
-- |
7,773 |
-- |
26,460 |
1,637,013 |
992,250 |
| N.I.T.
Units |
|
302,500 |
-- |
-- |
302,500 |
-- |
-- |
-- |
| Orix
Leasing Ltd. |
|
-- |
5,000 |
-- |
-- |
5,000 |
328,000 |
265,000 |
| Second
Tri-Star Modaraba |
|
468,000 |
-- |
-- |
-- |
468,000 |
4,812,000 |
1,053,000 |
| Soneri
Bank Ltd. |
|
12,650 |
-- |
-- |
-- |
12,650 |
563,700 |
366,850 |
| Standard
Chartered Leasing Ltd. |
8,000 |
-- |
-- |
8,000 |
-- |
-- |
-- |
| Union
Leasing Ltd. |
|
2,500 |
1,250 |
-- |
-- |
3,750 |
98,975 |
24,375 |
|
|
|
| TEXTILE
SPINNING: |
|
|
| Faisal
Spinning Mills Ltd. |
74,000 |
-- |
-- |
-- |
74,000 |
2,206,265 |
925,000 |
| Sana
Industries Ltd. |
|
10,000 |
-- |
-- |
10,000 |
-- |
-- |
-- |
|
|
|
| TEXTILE
COMPOSITE: |
|
|
| Crescent
Textile Mills Ltd. |
25,357 |
3,803 |
1,458 |
-- |
30,618 |
1,656,057 |
459,270 |
| Kaiser
Art & Kraft Ltd. |
|
-- |
