| Growth Mutual Fund Limited |
|
|
|
|
|
|
|
|
| Annual
Report 1999 |
|
|
| CONTENTS |
|
|
| CORPORATE
INFORMATION |
|
| NOTICE
OF ANNUAL GENERAL MEETING |
|
| DIRECTOR'S
REPORT |
|
| AUDITOR'S
REPORT TO THE MEMBERS |
|
| PATTERN
OF HOLDING OF THE SHARES |
|
| BALANCE
SHEET |
|
| PROFIT
AND LOSS ACCOUNT |
|
| CASH
FLOW STATEMENT |
|
| NOTES
TO THE ACCOUNTS |
|
|
|
| CORPORATE
INFORMATION |
|
|
| BOARD
OF DIRECTORS |
|
|
| CHIEF
EXECUTIVE |
|
| Mr.
M. Akram Ghanchi |
|
|
| DIRECTORS |
|
| Mr.
Riaz Arif Qureshi |
|
| Syed
Asim Jamal Tirmizi |
|
| Mr.
Hammad Mehmood |
|
| Mr.
M. Yousufuddin |
|
| Mr.
Rizwan Shaikh |
|
| Mr.
Minhaj Ahmed |
|
|
| COMPANY
SECRETARY |
|
| Mr.
Minhaj Ahmed |
|
|
| INVESTMENT
ADVISER |
|
| INTERNATIONAL
INVESTMENT & FINANCIAL SERVICES LIMITED |
|
|
| CUSTODIAN |
|
| Allied
Bank of Pakistan Limited |
|
|
| AUDITORS |
|
| M/s.
M. Yousuf Adil Saleem & Co. |
|
| Chartered
Accountants |
|
|
| BANKERS |
|
| Habib
Bank Limited |
|
| Muslim
Commercial Bank Limited |
|
| Union
Bank Limited |
|
| Gulf
Commercial Bank Limited |
|
|
| LEGAL
ADVISER |
|
| Haneef-uz-Zaman
Siddiqui |
|
| House
No. A-522A |
|
| Block
"J" North Nazimabad |
|
| Karachi. |
|
|
| SHARE
REGISTRARS |
|
| Uni
Associates (Pvt) Limited |
|
| 6th
Floor, Lakson Square, |
|
| Building
No. 3, |
|
| Sarwar
shaheed Road, Karachi. |
|
| Phone:
5687016 - 5687026 |
|
| Fax:
(021) 5680414 |
|
|
| REGISTERED
OFFICE |
|
| Room
No. 429-430, Karachi Stock Exchange Building, |
|
| Stock
Exchange Road, Karachi. |
|
| Phone:
(021) 2444430 - 31 |
|
| Fax:
(021) 2444432 |
|
|
|
| NOTICE
OF ANNUAL GENERAL MEETING |
|
|
| Notice
is hereby given that the Seventh Annual General Meeting of the GROWTH MUTUAL |
|
| FUND
LIMITED will be held on Thursday March 30, 2000 at 9:30 a.m. at Raffia
Choudri |
|
| Memorial
Centre, Ground Floor, Sidco Avenue Centre, 264 R.A. Lines Sarwar Shaheed |
|
| Road,
Karachi to transact the following business. |
|
|
| ORDINARY
BUSINESS: |
|
|
| 1.
To confirm. the Minutes of the Extra Ordinary General Meeting of the Company
held |
|
| on
November 20,1999. |
|
|
| 2.
To receive, consider and adopt the Audited Accounts for the year ended June
30, |
|
| 1999
and the reports of the Directors and the Auditors thereon. |
|
|
| 3.
To appoint Auditors and fix their remuneration. |
|
|
| 4.
To transact any other business as may be placed before the Meeting with the |
|
| permission
of the Chair. |
|
|
|
By Order of the Board |
|
|
|
M. Akram Ghanchi |
|
|
Chief Executive |
|
| Karachi: |
|
| Dated:
March 9, 2000 |
|
|
| Notes: |
|
|
| 1.
The shares transfer Books of the Company shall remain Closed from March 30, |
|
| 2000
to April 5, 2000 (both days inclusive). |
|
|
| 2.
A member entitled to attend, speak and vote at these meeting. may appoint a |
|
| proxy
to attend, speak and vote on his/her behalf. A proxy need not to be member. |
|
|
| 3.
An instrument of proxy and the power of Attorney or other authority (if any) |
|
| under
which it is signed or a notarially certified copy of such Power of attorney |
|
| or
other authority, in order to be valid must be deposited at Room # 429-430,
4th |
|
| Floor,
Karachi Stock Exchange Building Stock Exchange Road, Karachi not less |
|
| than
48 hours hi, fore the time of the respective meeting. |
|
|
| 4.
Members are requested to notify any change in their address, if any. |
|
|
|
| DIRECTOR'S
REPORT |
|
|
| The
new board of Directors are pleasure to present the 7th Annual report of
GROWTH MUTUAL |
|
| FUND
LIMITED together with the Audited Accounts and the auditor's report thereon
for the year |
|
| ended
June 30, 1999. |
|
|
| MARKET
BEHAVIOR |
|
|
| Year
under review witnessed adverse impact of sanctions imposed by the Western
Countries due to |
|
| nuclear
test by Pakistan in May, 1998. Stock market remained bearish throughout the
period. |
|
| Investor'
s confidence was badly shaken by the tussle between IPP's and Government, and
it is very |
|
| difficult
to invest freely in stock market as we already have huge losses. |
|
|
| The
financial results of the year ended June 30, 1999 are as under: |
|
|
|
Rupees |
|
|
| Profit
before taxation |
|
42,884 |
|
| Provision
for taxation |
|
(1,910) |
|
|
---------- |
|
| Profit
after taxation |
|
40,974 |
|
| Accumulated
loss carried forward |
(67,924,800) |
|
|
| OPERATING
RESULT |
|
|
| No
business was conducted during the year due to the bearish trend in the stock
market, |
|
| blockage
of fund, change in management. We have taken up the responsibility as board
member |
|
| subsequent
to year - end and are hopeful for better results in the succeeding year. We
are in the |
|
| process
of negotiation with the custodian for further reduction of their fees and for
new |
|
| agreement
with Investment Advisor on completion of five years. |
|
|
| COMMENTS
ON OBSERVATION BY AUDITORS |
|
|
| Auditors
in their report raise doubt above the recoverability of receivable of Rs.
25,426,375/-. |
|
| Your
management is fully aware and very keen to recover the amount, and we hope
'that by the |
|
| end
of this year we will recover the same as negotiation for the same is
underway. |
|
|
| FUTURE
OUTLOOK |
|
|
| Sign
of improvement in stock market appears due to concrete step taken by the new
Government, |
|
| resulting
in restoration of investor's confidence.
Further more new Board is very keen in |
|
| getting
the company on the right track. We hope that the current year will bring
signs of |
|
| improvement
for our company also and your Directors by the grace of Almighty Allah will
put |
|
| their
best efforts to make your company profitable one. |
|
|
| PATTERN
OF SHARE HOLDING |
|
|
| The
statement showing pattern of share holding in the Company as at June 30, 1999
is annexed |
|
| to
the financial statement. |
|
|
| AUDITORS |
|
|
| The
retiring Auditor's M/s. Yousuf Adil Saleem & Co. Chartered Accountants,
being eligible |
|
| offer
themselves for re-appointment. |
|
|
| ACKNOWLEDGMENT |
|
|
| The
director. s would like to take the opportunity to thank the Securities and
Exchange |
|
| Commission
of Pakistan for their Co-operation, guid. ance & support. The board also
appreciates |
|
| the
devoted work done by staff and officers of the company. |
|
|
|
For and On behalf of the
Board |
|
|
| Karachi: |
|
Akram Ghanchi |
|
| Dated
· 6th March, 2000 |
|
Chief Executive |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of GROWTH MUTUAL FUND LIMITED as at |
|
| June
30, 1999 and the related profit and loss account and statement of changes in
financial |
|
| position
(cash flow statement), together with the notes to the accounts 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
and, after due verification thereof, we report that: |
|
|
| 1.
No direct confirmation has been received from a stock broker in respect of an
old |
|
| outstanding
receivable amount of Rs. 25,426,375/-. This amount in our opinion is |
|
| doubtful
of recovery against which no provision has been made in these accounts. |
|
|
| 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 Adviser's 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 Investments |
|
| 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 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 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 |
|
| manner
so required however, because of the significance of the matter referred |
|
| to
in para 1 above, these respectively do not 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 then ended; and |
|
|
| d
in our opinion, no Zakat was deductible at source under the Zakat and |
|
| Ushr
Ordinance, 1980 |
|
|
| Without
further qualifying our opinion we draw attention towards the fact that the |
|
| provisions
of Section 245 of the Companies Ordinance, 1984 regarding half yearly |
|
| accounts
have not been compiled with. |
|
|
|
M. Yousuf Adil Saleem
& Co. |
|
|
Chartered Accountants |
|
| Karachi |
|
| Dated |
6th March 2000 |
|
|
|
| FROM
"34" |
|
| PATTERN
OF HOLDING OF THE SHARES HELD BY THE SHAREHOLDERS |
|
| AS
AT JUNE 30, 1999 |
|
|
| SR. |
No. of |
|
SHARE |
|
TOTAL |
|
| NO. |
Share Holders |
|
HOLDING |
|
SHARES |
|
|
Share Holding |
FROM |
|
TO |
HELD |
|
|
| 1. |
767 |
1 |
-- |
100 |
11,164 |
|
| 2. |
10,965 |
101 |
-- |
500 |
17,848 |
|
| 3. |
67 |
501 |
-- |
1,000 |
64,900 |
|
| 4. |
44 |
1,001 |
-- |
5,000 |
64,664 |
|
| 5. |
37 |
5,001 |
-- |
10,000 |
30,256 |
|
| 6. |
2 |
10,001 |
-- |
15,000 |
24,000 |
|
| 7. |
1 |
15,001 |
-- |
20,000 |
18,000 |
|
| 8. |
1 |
17,321 |
-- |
22,320 |
22,320 |
|
| 9. |
1 |
26,785 |
-- |
31,784 |
30,584 |
|
| 10. |
1 |
21,249 |
-- |
26,248 |
24,048 |
|
| 11. |
1 |
24,105 |
-- |
29,104 |
24,504 |
|
| 13. |
2 |
11,961 |
-- |
16,960 |
33,920 |
|
|
---------- |
|
---------- |
|
|
11,889 |
|
38,528 |
|
|
========== |
|
========== |
|
|
|
|
|
|
| NOTE:
The Slabs not applicable have not been shown. |
|
|
| Categories
of |
Number |
Shares Held |
Percentage |
|
| Shareholders |
|
|
|
| Individual |
|
11,879 |
3,224 |
59.670 |
|
| Joint
Stock Companies |
1 |
24,504 |
7.454 |
|
| Financial
Institutions |
2 |
39,280 |
13.500 |
|
| Modaraba
Companies |
4 |
56,584 |
4.498 |
|
| Investment
Companies |
3 |
46,008 |
14.878 |
|
|
---------- |
---------- |
---------- |
|
|
11,889 |
38,528 |
100.000 |
|
|
========== |
========== |
========== |
|
|
|
| BALANCE
SHEET AS AT JUNE 1999 |
|
|
|
Notes |
1999 |
1998 |
|
|
|
Rupees |
Rupees |
|
|
| SHARE
CAPITAL |
|
| Authorised |
|
| 20,000,000
Ordinary shares |
|
| of
Rs.10/= each |
|
49,664 |
49,664 |
|
|
========== |
========== |
|
| Issued,
subscribed and paid up |
|
| 10,000,000
ordinary shares |
|
|
| of
Rs. 10/= each fully paid in cash. |
|
57,600 |
57,600 |
|
| Accumulated
loss |
|
(67,924,880) |
(68,752,286) |
|
|
---------- |
---------- |
|
|
28,016 |
52,578 |
|
|
| DEFERRED
LIABILITY |
|
3 |
-- |
-- |
|
|
| CURRENT
LIABILITIES |
|
| Current
portion of deferred liability |
|
43,923 |
62,851 |
|
| Due
to Investment Adviser |
|
4 |
9,560 |
29,490 |
|
| Accrued
expenses |
|
|
20,000 |
20,000 |
|
| Taxation |
|
5 |
26,406 |
24,656 |
|
|
|
---------- |
---------- |
|
|
34,353 |
5,925 |
|
|
|
---------- |
---------- |
|
|
62,369 |
58,503 |
|
|
|
|
| CURRENT
ASSETS |
|
| Marketable
securities |
|
6 |
23,552 |
48,079 |
|
| Accounts
receivable - Unsecured |
|
|
|
|
| considered
good |
|
|
63,943 |
13,302 |
|
|
|
|
|
| Advance tax |
|
|
-- |
160 |
|
| Cash
and bank balances |
|
7 |
40,410 |
62,498 |
|
|
---------- |
---------- |
|
|
62,369 |
58,503 |
|
|
|
---------- |
---------- |
|
|
62,369 |
58,503 |
|
|
========== |
========== |
|
| The
annexed notes from 1 to 14 form an integral part of these accounts. |
|
|
|
|
|
|
M. AKRAM GHANCHI |
|
SYED ASIM JAMAL TIRMIZI |
|
|
CHIEF EXECUTIVE |
|
DIRECTOR |
|
|
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR:, ENDED JUNE 30, 1999 |
|
|
|
Note |
1999 |
1998 |
|
|
|
Rupees |
Rupees |
|
|
| Income |
|
| Gain
/ (Loss) on dealing in securities |
|
8 |
-- |
(8,568,684) |
|
| Return
on deposits and certificates |
|
|
-- |
1,599 |
|
| Dividend |
|
|
8,138 |
63,419 |
|
| Other |
|
|
-- |
5,366 |
|
|
---------- |
---------- |
|
|
8,138 |
(7,580,796) |
|
| Operating
Expenses |
|
|
| Remmuneration
to Investment Adviser |
|
-- |
50,333 |
|
| Amortisation
of deferred expenditure |
|
-- |
61,428 |
|
| Custodian
charges |
|
3,392 |
37,856 |
|
| Financial
charges |
|
46,407 |
25,677 |
|
| Audit fee |
|
20,000 |
20,000 |
|
| Others |
|
2,000 |
2,295 |
|
|
---------- |
---------- |
|
|
(333,943) |
(2,098,133) |
|
|
---------- |
---------- |
|
|
(325,805) |
(9,678,929) |
|
| Reversal
of (Provision for) diminution in value |
|
| of
Marketable Securities |
|
1,155,121 |
(736,252) |
|
|
---------- |
---------- |
|
| Profit
/ (Loss) before taxation |
|
42,884 |
(10,415,181) |
|
| Taxation |
|
|
|
| Current |
|
1,350 |
(50,000) |
|
| Prior year's |
|
560 |
(2,199) |
|
|
---------- |
---------- |
|
|
(1,910) |
(47,801) |
|
|
|
|
| Profit
/ (Loss) after taxation |
|
40,974 |
(10,462,982) |
|
| Accumulated
loss brought forward |
|
(68,752,286) |
(58,289,304) |
|
|
---------- |
---------- |
|
| Accumulated
loss carried forward |
|
(67,294,880) |
(68,752,286) |
|
|
========== |
========== |
|
| Earning
per share |
|
9 |
0.08 |
(1.05) |
|
|
| The
annexed notes from 1 to 14 form an |
|
| integral
part of these accounts |
|
|
|
M. AKRAM GHANCHI |
|
SYED ASIM JAMAL TIRMIZI |
|
|
CHIEF EXECUTIVE |
|
DIRECTOR |
|
|
|
| STATEMENT
OF CHANGES IN FINANCIAL POSITION |
|
| (CASH
FLOW STATEMENT) |
|
| FOR
THE YEAR ENDED JUNE 30, 1999. |
|
|
|
1999 |
1998 |
|
|
Rupees |
Rupees |
|
|
| A.
CASH FLOW FROM OPERATING ACTIVITIES |
|
|
| Profit
/ (Loss) before taxation |
|
42,884 |
(10,415,181) |
|
| Adjustment
for items not involving |
|
| movement
of funds |
|
| (Reversal)
of Provision for diminution in |
|
| marketable
securities |
|
(1,155,121) |
736,252 |
|
| Amortisation
of deferred expenditures |
|
-- |
1,241,076 |
|
|
---------- |
---------- |
|
|
(1,155,121) |
1,977,328 |
|
|
---------- |
---------- |
|
| Operating
Profit / (loss) before working |
|
| capital changes |
|
(325,805) |
(8,437,853) |
|
|
| Changes
in working capital |
|
| (Increase)
/ decrease in current assets |
|
| Investment
in marketable securities |
|
-- |
9,394,434 |
|
| Accounts
receivable |
|
145,967 |
613,250 |
|
| (Decrease)/Increase
in current liabilities |
|
| Due
to Investment Adviser |
|
111,142 |
(576,852) |
|
|
---------- |
---------- |
|
|
257,109 |
9,430,832 |
|
| Tax paid |
|
-- |
(160) |
|
|
---------- |
---------- |
|
|
257,109 |
9,430,672 |
|
|
---------- |
---------- |
|
| Net
cash (used in) / from operating activities |
|
(68,696) |
992,819 |
|
|
---------- |
---------- |
|
|
| B.
CASH FLOW FROM FINANCING |
|
|
| ACTIVITIES |
|
|
|
|
|
| Deferred
expenditure |
|
|
(150,000) |
(1,111,427) |
|
|
|
|
· |
|
---------- |
---------- |
|
|
| Net
decrease ,in cash and |
|
|
|
|
|
| cash
equivalents (A+B) |
|
|
(218,696) |
(118,608) |
|
|
|
|
|
|
|
|
|
| Cash
and bank balances of |
|
|
|
|
|
| the
beginning of the year |
|
|
|
|
|
|
|
---------- |
---------- |
|
|
| Cash
and bank balances at |
|
|
455,714 |
574,322 |
|
|
| the
end of the year |
|
|
|
|
237,018 |
455,714 |
|
|
|
========== |
========== |
|
|
|
|
|
|
|
|
M. AKRAM GHANCHI |
|
SYED ASIM JAMAL TIRMIZI |
|
|
|
CHIEF EXECUTIVE |
|
DIRECTOR |
|
|
|
|
|
|
|
|
| NOTES
TO THE ACCOUNTS - JUNE 30, 1999. |
|
|
|
|
|
|
|
| 1.
STATUS AND ACTIVITIES |
|
|
|
|
| 1.1
The Company was incorporated on May 24, 1992 as a Public Company Limited by |
|
|
| shares
under the Companies Ordinance, 1984 and has been registered as an Invest- |
|
|
| ment
Company under the Investment Companies and Investment Adviser's Rules, |
|
|
| 1971.
It is listed. on the Karachi Stock Exchange. It is a closed end mutual fund. |
|
|
|
|
| 1.2 "International Investment and
Financial Services Limited" are the approved "Invest- |
|
|
| ment
Adviser" and Allied Bank of Pakistan Limited are the approved Custodian
of |
|
|
| the Company. |
|
|
|
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICIES |
|
|
|
|
| 2.1
Accounting Convention |
|
|
|
|
|
| These
accounts have be, i~ prepared under 'historical cost convention'. |
|
|
|
|
| 2.2 Taxation |
|
|
|
|
| Provision
for current taxation is based on taxable income at the current tax |
|
|
| rates
after taking into account tax credits available, if any. The company |
|
|
| accounts
for deferred taxation arising on all major timing difference using the |
|
|
| liability
method but does not account for deferred tax debits. |
|
|
|
|
| 2.3
Marketable Securities |
|
|
|
|
| Investment
is valued at lower of average cost and market value on an aggregate |
|
|
| portfolio
basis. Market value is taken from Karachi Stock Exchange quotation sheets |
|
|
| on
last working day of the income year. |
|
|
|
|
| 2.4
Revenue recognition |
|
|
|
|
| Sale
and purchase of securities and resultant gain/loss are recognised on the date |
|
|
| of
contract. |
