| Golden Arrow Selected Stocks Fund Limited |
|
|
|
|
|
|
|
|
| Annual
Report 2000 |
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| CONTENTS |
|
|
| Board
of Directors and Company Information |
|
| Notice
of Meeting |
|
| Directors'
Report |
|
| Pattern
of Shareholding |
|
| Auditors'
Report |
|
| Balance Sheet |
|
| Profit
and Loss Account |
|
| Statement
of Changes in Equity |
|
| Statement
of Changes in Financial Position |
|
| Notes
to the Accounts |
|
| Investment
Adviser's Statement of Income and |
|
| Expenditure
in relation to Investment Company |
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|
|
| BOARD
OF DIRECTORS |
|
|
| Mr.
Said Ahmed |
|
Chairman |
|
| Mr.
Mohammad Basheer Janmohammed |
Director |
|
| Mr.
Ahmed Abdul Sattar |
|
Director |
|
| Mr.
Muhammad Atiq |
|
Director |
|
| Mr.
Muhammad Hashim Khan |
|
Nominee Director of ICP |
|
| 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. |
|
|
| CUSTODIAN |
|
| National
Bank of Pakistan, |
|
| I.I.
Chundrigar Road, Karachi. |
|
|
| AUDITORS |
|
| Taseer
Hadi Khalid & Co., |
|
| Chartered
Accountants, |
|
| First
Floor, Sheikh Sultan Trust Bldg. No. 2, |
|
| Beaumont
Road, Karachi. |
|
|
| LEGAL
ADVISER |
|
| Ali
Daraz Siddiqui, |
|
| C/o.
Noorallah A. Manji, |
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| 5th
Floor, Jubilee Insurance House, |
|
| I.I.
Chundrigar Road, Karachi. |
|
|
| REGISTERED
OFFICE |
|
| 607, Uni Tower, |
|
| I.I.
Chundrigar Road, Karachi. |
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|
|
| NOTICE
OF MEETING |
|
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| Notice
is hereby given that the Seventeenth Annual General Meeting of Golden Arrow
Selected Stocks |
|
| Fund
Limited will be held on Wednesday, 13th December, 2000 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 Annual General Meeting held on 28th December,
1999. |
|
|
| --
To receive, consider and adopt the Audited Accounts together with the
Directors' and Auditors' Report |
|
| for
the year ended 30th June, 2000. |
|
|
| --
To appoint Auditors of the Company and to fix their remuneration. The present
Auditors, Messrs. 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 Chair. |
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|
|
|
By Order of the Board |
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|
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| Karachi:
20th November, 2000 |
|
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 than 48 |
|
| hours
before the time for holding the meeting. A proxy must be a member. |
|
|
|
|
| 2.
The Share Transfer books of the Company will remain closed from 7th December,
2000 to 13th |
|
| December,
2000 (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 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, 2000. |
|
|
| MARKET
BEHAVIOUR |
|
| The
first half of the year under review has been static with gradual improvement
in the performance of the |
|
| market.
In the second half the market started with firm bullish note and the KSE
index rose from 1400 points |
|
| on
1st Jan. 2000 to 2000 points on 31st March 2000. During this period market
was on continuous rise |
|
| without
any correction, which is a must for any stable market. During this quarter
behaviour of the market |
|
| witnessed
the erratic buying in most of the scrips without taking into consideration
the fundamentals and |
|
| merits
of any particular Company. The market was thus of speculative nature rather
than an investor oriented |
|
| market.
Due to this unnatural performance of the market the last quarter remained in
turmoil sort of situation |
|
| and
the Index slided down from 2000 points on 31st March to 1525 points on 30th
June 2000. This erosion in |
|
| points
was around 23% in last quarter. Apart from above factors market throughout
the year remained under |
|
| the
influence of the following factors: |
|
|
| -
Slow economic growth. |
|
| -
Uncertainty about IPPs' issues specially of market favourite Hubco. |
|
|
| OPERATIONAL
RESULTS |
|
| The
Company's profit amounted to Rs. 17.6 million as at 30th June 2000 as against
the loss of Rs. 7.8 |
|
| million
for the preceding year. The increase in profit is due to improvement of KSE
Index from 1055 points on |
|
| 30-06-99
to 1521 points on 30-06-2000. This figure of profit has been arrived at after
meeting administrative |
|
| expenses,
custodian fee, auditors' remuneration, the fee of 1% of the net assets of the
company to |
|
| investment
adviser and finally reversal of provision for diminution in value of
marketable securities by Rs. 17 |
|
| million. |
|
|
| FUTURE
PROSPECTS |
|
| The
future prospects of the market will depend on the growth of the economy as a
whole in coming year. |
|
| The
main task of the current Government is to address above referred issues
presently effecting the growth of |
|
| country's
economy as well as smooth functioning of capital market of the country. |
|
|
| 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 the Company. |
|
|
| The
Board also appreciate the devoted work done by the staff and officers of the
company. |
|
|
|
|
For and on behalf of the Board |
|
|
|
|
|
|
|
|
|
SAID AHMED |
|
| Karachi:
7th November, 2000 |
|
Chairman |
|
|
|
| PATTERN
OF SHAREHOLDING AS AT 30TH JUNE 2000 |
|
|
| No. of |
Having
Shares |
|
|
| Shareholders |
From |
To |
Shares Held |
Percentage |
|
|
|
|
|
| 572 |
1 |
100 |
35,624 |
0.22 |
|
|
| 753 |
101 |
500 |
214,438 |
1.32 |
|
|
| 510 |
501 |
1,000 |
417,804 |
2.58 |
|
|
| 1,052 |
1,001 |
5,000 |
2,570,020 |
15.85 |
|
|
| 218 |
5,001 |
10,000 |
1,540,490 |
9.50 |
|
|
| 74 |
10,001 |
15,001 |
933,528 |
5.76 |
|
|
| 34 |
15,001 |
20,000 |
605,271 |
3.73 |
|
|
| 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 |
296,891 |
1.83 |
|
|
| 3 |
45,001 |
50,000 |
143,496 |
0.86 |
|
|
| 3 |
50,001 |
55,000 |
157,979 |
0.98 |
|
|
| 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 |
2.65 |
|
|
| 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 |
1.35 |
|
|
| 1 |
245,001 |
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 |
1,195,001 |
1,200,000 |
1,195,564 |
7.38 |
|
|
| 1 |
2,140,001 |
2,145,000 |
2,144,000 |
13.23 |
|
| ------------------ |
|
------------------ |
------------------ |
|
| 3,286 |
|
16,210,000 |
100.00 |
|
| ========== |
|
========== |
========== |
|
|
|
| CATEGORIES
OF SHAREHOLDERS AS ON 30 JUNE 2000 |
|
|
| Particulars |
|
Shareholders |
Shareholding |
Percentage |
|
|
| Individuals |
|
3,240 |
8,292,407 |
51.16 |
|
| Insurance
Companies |
|
4 |
94,999 |
0.59 |
|
| Joint
Stock Companies |
|
26 |
4,243,284 |
26.17 |
|
| Financial
Institution |
|
8 |
2,577,179 |
15.90 |
|
| Modaraba
Companies |
|
4 |
710,731 |
4.38 |
|
| Leasing
Companies |
|
2 |
147,200 |
0.91 |
|
| Non Resident |
|
1 |
142,200 |
0.88 |
|
| Others |
|
1 |
2,000 |
0.01 |
|
|
|
------------------ |
------------------ |
------------------ |
|
|
|
3,286 |
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 |
|
| 2000
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. Our responsibility is to
express an opinion on these |
|
| statements
based on our audit. |
|
|
| We
conducted our audit in accordance with the auditing standards 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 above said statements. An audit also
includes assessing the |
|
| accounting
policies and significant estimates made by management, as well as, evaluating
the overall |
|
| presentation
of the above said 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; |
|
|
| 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 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, 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 |
|
| 2000
and of the profit, its cash flows and changes in equity for the year then
ended; and |
|
|
| d)
in our opinion Zakat deductible at source under the Zakat and Ushr Ordinance,
1980 (XVIII of 1980), was |
|
| deducted
by the company and deposited in the Central Zakat Fund established under
section 7 of that |
|
| Ordinance. |
|
|
|
|
|
|
|
TASEER HADI KHALID & CO. |
|
| Karachi:
7th November, 2000 |
|
Chartered Accountants |
|
|
|
| BALANCE
SHEET AS AT 30 JUNE 2000 |
|
|
|
NOTE |
2000 |
1999 |
|
|
|
(Rupees
'000) |
|
|
| ASSETS |
|
|
|
| Long
Term Investments |
|
3 |
3,750 |
6,250 |
|
|
|
|
|
| CURRENT
ASSETS |
|
|
|
| Marketable
securities |
|
4 |
68,759 |
36,965 |
|
| Advances,
prepayments and other receivables |
5 |
1,216 |
1,138 |
|
| Bank
balances on current account |
|
1,591 |
17,325 |
|
|
------------------ |
------------------ |
|
|
|
|
71,566 |
55,428 |
|
|
|
|
------------------ |
------------------ |
|
| Total Assets |
|
|
75,316 |
61,678 |
|
|
|
|
| LIABILITIES |
|
|
|
| CURRENT
LIABILITIES |
|
| Due
to shareholders on reduction of capital |
|
45 |
45 |
|
| Current
maturity of deferred expenditure payable |
|
-- |
62 |
|
| Accrued
expenses |
|
6 |
189 |
116 |
|
| Due
to investment adviser - an associated company |
7 |
735 |
568 |
|
| Unclaimed
dividend |
|
|
557 |
295 |
|
| Provision
for taxation |
|
8 |
241 |
350 |
|
| Proposed
dividend |
|
|
-- |
4,053 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
1,767 |
5,489 |
|
|
|
|
------------------ |
------------------ |
|
| Total
Liabilities |
|
|
1,767 |
5,489 |
|
|
|
|
------------------ |
------------------ |
|
| Net Assets |
|
|
73,549 |
56,189 |
|
|
========== |
========== |
|
| 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 |
9 |
81,050 |
81,050 |
|
|
| Reserves |
|
| Share premium |
|
|
6,700 |
6,700 |
|
| General reserve |
|
|
500 |
500 |
|
| Accumulated
loss |
|
20 |
(14,701 ) |
(32,061) |
|
|
|
|
------------------ |
------------------ |
|
|
|
(7,501) |
(24,861) |
|
|
|
------------------ |
------------------ |
|
|
|
73,549 |
56,189 |
|
|
|
|
========== |
========== |
|
|
| These
accounts should be read in conjunction with the attached notes. |
|
|
|
SAID AHMED |
|
M. ASHRAF KOTHARI |
|
|
CHAIRMAN |
|
DIRECTOR |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED 30 JUNE 2000 |
|
|
|
|
|
NOTE |
2000 |
1999 |
|
|
|
|
|
|
(Rupees
'000) |
|
|
|
| Sales
of marketable securities |
|
247,742 |
131,520 |
|
| Cost
of sales of marketable securities |
10 |
251,859 |
136,945 |
|
|
------------------ |
------------------ |
|
| Loss
on sale of marketable securities |
|
(4,117) |
(5,425) |
|
|
| Other income |
|
|
5,676 |
4,355 |
|
|
|
------------------ |
------------------ |
|
|
|
1,559 |
(1,070) |
|
|
| OPERATING
EXPENSES |
|
|
|
| Administrative |
|
|
12 |
286 |
438 |
|
| Financial |
|
|
13 |
13 |
7 |
|
| Remuneration
to the investment adviser |
7.1 |
735 |
562 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
1,034 |
1,007 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
525 |
(2,077) |
|
| Reversal
of provision for diminution |
|
| in
value of marketable securities |
|
|
17,087 |
9,922 |
|
|
|
|
|
------------------ |
------------------ |
|
| Profit
for the year before taxation |
|
|
17,612 |
7,845 |
|
|
|
|
| Taxation
-- Current Year |
|
241 |
350 |
|
| -- Prior Year |
|
11 |
(2) |
|
|
------------------ |
------------------ |
|
|
|
|
252 |
348 |
|
|
|
|
------------------ |
------------------ |
|
| Profit
for the year after taxation |
|
|
17,360 |
7,497 |
|
|
|
|
========== |
========== |
|
| Earning
per share - basic and diluted |
14 |
1.07 |
0.46 |
|
|
========== |
========== |
|
|
| These
accounts should be read in conjunction with the attached notes. |
|
|
|
SAID AHMED |
|
M. ASHRAF KOTHARI |
|
|
CHAIRMAN |
|
DIRECTOR |
|
|
|
|
| STATEMENT
OF CHANGES IN EQUITY |
|
| FOR
THE YEAR ENDED 30 JUNE 2000 |
|
|
|
|
(Rupees '000) |
|
|
|
Share |
Share |
Accumu- |
Total |
|
|
|
Capital |
Premium |
lated loss |
|
|
|
|
|
| Balance
as on 1 July 1998 |
81,050 |
6,700 |
500 |
(35,505) |
52,745 |
|
| Profit
for the year |
-- |
-- |
-- |
7,497 |
7,497 |
|
| Proposed
dividend |
-- |
-- |
-- |
(4,053) |
(4,053) |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Balance
as on 30 June 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 |
|
|
|
========== |
========== |
========== |
========== |
========== |
|
|
|
SAID AHMED |
|
M. ASHRAF KOTHARI |
|
|
CHAIRMAN |
|
DIRECTOR |
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED 30 JUNE 2000 |
|
|
|
|
2000 |
1999 |
|
|
|
(Rupees
'000) |
|
|
| CASH
FLOWS FROM OPERATING ACTIVITIES |
|
| Profit
before taxation |
|
17,612 |
7,845 |
|
|
|
|
|
| Adjustment for: |
|
|
|
|
| Amortisation
of deferred expenditure |
|
-- |
136 |
|
| Reversal
of provision for diminution in value of |
|
|
|
| marketable
securities |
|
(17,087) |
(9,922) |
|
|
|
------------------ |
------------------ |
|
|
|
525 |
(1,941) |
|
| Changes
in Operating assets / liabilities |
|
|
|
| (Increase)
/ Decrease in current assets |
|
| Marketable
securities |
|
(14,707) |
14,861 |
|
| Short
term investment |
|
-- |
2,500 |
|
| Prepayments
& other receivables |
|
(199) |
127 |
|
|
|
|
|
| Increase
/ (Decrease) in current liabilities |
|
|
|
| Creditors
and accrued expenses |
|
73 |
(723) |
|
| Due
to investment adviser |
|
167 |
29 |
|
|
|
------------------ |
------------------ |
|
|
|
(14,666) |
16,794 |
|
|
| Taxes paid |
|
|
(240) |
(559) |
|
|
|
------------------ |
------------------ |
|
| Net
cash flows (used in)/from operating activities |
|
(14,381) |
14,294 |
|
|
| CASH
FLOWS FROM INVESTING ACTIVITIES |
|
| Redemption
of term finance certificates |
|
2,500 |
1,250 |
|
| Deferred
expenditure paid |
|
(62) |
(62) |
|
|
|
------------------ |
------------------ |
|
| Net
cash flows from investing activities |
|
2,438 |
1,188 |
|
|
|
| CASH
FLOWS FROM FINANCING ACTIVITIES |
|
| Dividend paid |
|
|
(3,791) |
(27) |
|
|
|
|
------------------ |
------------------ |
|
| Net
cash flows used in financing activities |
|
(3,791) |
(27) |
|
|
|
|
| Net
(decrease) /increase in bank balances |
|
(15,734) |
15,455 |
|
| Bank
balance at the beginning of the year |
|
17,325 |
1,870 |
|
|
|
------------------ |
------------------ |
|
| Bank
balance at the end of the year |
|
1,591 |
17,325 |
|
|
|
========== |
========== |
|
|
|
|
| These
accounts should be read in conjunction with the attached notes. |
|
|
|
| NOTES
TO THE ACCOUNTS |
|
| FOR
THE YEAR ENDED 30 JUNE 2000 |
|
|
| 1.
STATUS AND NATURE OF BUSINESS |
|
|
| The
company was incorporated on 09 May 1983 as a public limited company under
Companies Act, |
|
| 1913
(now Companies Ordinance, 1984) and was registered as an Investment Company
under the |
|
| Investment
Companies and Investment Adviser's Rules, 1971 and is listed on Karachi and
Lahore Stock |
|
| Exchanges.
The Company has entered into an agreement with an associated company, Golden
Arrow |
|
| Investment
and Research (Private) Limited to act as its "Investment Adviser". |
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICIES |
|
