| Prudential Stocks Fund Ltd - 2005 |
============================================================================================= STATEMENT OF ASSETS AND LIABILITIES AS AT JUNE 30, 2005 ============================================================================================= 2005 2004 Notes Rupees Rupees ============================================================================================= ASSETS: Marketable Securities "held for trading" 3 14,765,680 23,856,686 Cash and Bank balances 4 746,040 1,000,488 Dividend receivables 355,537 501,837 Deposits and prepayments 5 10,266 457,632 Advance taxation 229,374 183,540 Total Assets 16,106,898 26,000,183 LIABILITIES: Remuneration payable to the Investment Advisor 6 421,006 485,547 Accrued expenses and other liabilities 7 336,116 257,430 Unclaimed dividend 435,830 435,830 Provision for Taxation 8 600,739 544,008 1,793,691 1,722,815 Net assets 14,313,207 24,277,368 SHARE HOLDERS' EQUITY AUTHORISED CAPITAL: 20,000,000 ordinary shares of Rs 10- each 200,000,000 200,000,000 Issued, subscribed and paid up capital 6,000,000 ordinary shares of Rs 10/- each 9 60,000,000 60,000,000 Accumulated Loss (45,686,793) (35,722,632) Contingencies & Commitments 10 - - 14,313,207 24,277,368 ============================================================================================= ============================================================================================= PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED JUNE 30, 2005 ============================================================================================= 2005 2004 Notes Rupees Rupees ============================================================================================= Capital (Loss)/Gain on sale of marketable securities 11 (7,013,625) 215,905 Unrealised (loss)/gain in Market value of Securities 3.1 (2,908,677) 1,990,187 classified as "held for trading" Dividend income 1,134,624 1,151,861 Profit on bank deposits 3,401 8,364 (8,784,277) 3,366,316 OPERATING EXPENSES: Administrative 12 124,796 76,550 Listing, regulatory fee 163,216 282,000 Legal and professional charges 219,600 111,667 Custody fee 44,059 99,008 Auditors' remuneration 12.1 145,000 127,250 Bank charges 5,475 2,650 Remuneration to the Investment Advisor 6 421,006 485,547 1,123,152 1,184,672 (Loss)/Profit before taxation (9,907,429) 2,181,644 Taxation - Current (56,731) (57,593) (Loss)/Profit after taxation (9,964,160) 2,124,051 Accumulated (loss) brought forward (35,722,632) (37,846,683) Accumulated loss carried forward (45,686,793) (35,722,632) Earnings per share 15 (1.66) 0,35 ============================================================================================= =============================================================================================
CASH FLOW STATEMENT FOR THE YEAR ENDED JUNE 30, 2005
=============================================================================================
2005 2004
Rupees Rupees
=============================================================================================
CASH FLOW FROM OPERATING ACTIVITIES:
(loss)/Profit before taxation (9,907,429) 2,181,644
ADJUSTMENTS FOR:
Loss/ (gain) due to change in fair value
of marketable securities 2,908,677 (1,990,187)
(6,998,752) 191,457
(INCREASE)/ DECREASE IN OPERATING ASSETS:
Marketable securities 6,182,329 308,518
Advances, prepayments and other receivables 547,831 (451,706)
INCREASE /(DECREASE) IN OPERATING LIABILITIES:
Due to the investment advisor (64,541) (25,797)
Accounts payable, accrued expenses and other liabilities 78,686 (1,575,883)
Dividend paid - -
Cash generated from operations (254,448) (1,553,411)
Cash and Bank Balance at the beginning of year 1,000,488 2,553,899
Cash and Bank Balance at the end of year 746,040 1,000,488
=============================================================================================
============================================================================================= STATEMENT OF MOVEMENT IN EQUITY AND RESERVES FOR THE YEAR ENDED JUNE 30, 2005 ============================================================================================= 2005 2004 Note Rupees Rupees ============================================================================================= Net Assets per Share at July 1 4.05 4.25 Effect of change in accounting policy related to unrealised gain on revaluation of marketable securities 2.3 - (0.55) Balance as at July01, 2004 restated 4.05 3.70 (Loss)/Gain on sale of Marketable Securities (1.17) 0.04 (Loss)/Gain due to change in fair value of Marketable Securities (0.48) 0.33 Net Income for the Year excluding Capital Gain / (Loss) (0.01) (0.01) (Loss)/Profit for the year - per share (1.66) 0.35 Unrealised appreciation on remeasurment of Marketable Securities - - Net Assets per Share at end of the year 2.39 4.05 ============================================================================================= =============================================================================================
DISTRIBUTION STATEMENT FOR THE YEAR ENDED JUNE 30, 2005
=============================================================================================
2005 2004
Rupees Rupees
=============================================================================================
Accumulated (Loss) B/Fwd. (35,722,632) (37,846,683)
(Loss)/Profit for the year (9,964,160) 2,124,051
(45,686,793) (35,722,632)
Accumulated (Loss) C/ Fwd. (45,686,793) (35,722,632)
=============================================================================================NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 20051. STATUS AND NATURE OF BUSINESS The Prudential Stocks Fund Limited (Fund) was incorporated on 5th September 1990 as public limited company under` the Companies Ordinance, 1984 and was registered as an investment company under the investment companies and investment Advisor's Rules, 1971 (ICIAR-97). The ICIAR-97 have been repealed by the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (NBFC- Rules 2003). The Fund has entered into an agreement with an associated company Prudential Fund Management Ltd., to act as its Investment Adviser. CDC acts as custodian of the fund. The Fund is listed at Karachi and Lahore Stock Exchanges. The principle objective is to carry on the business of closed end Mutual Fund and to invest its assets in securities, which are listed on stock exchanges. In order to comply with the requirement of NBFC Rules 2003, regarding capital enhancement, the company is proposed to merge with First Pak Modarba. The proposal for the merger of Prudential Stocks Fund Limited with First Pak Modaraba as implemented shall satisfy the requirement of NBFC Rules 2003. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES These accounts have been prepared under the historical cost convention except for Marketable Securities which are stated at fair value. 2.1. STATEMENT OF COMPLIANCE These accounts have been prepared by in accordance with Accounting Standard, issued by the International Accounting Standard Committee (ISAC), interpretation issued by the Standing Interpretation Committee (SIC) of the IASC as adopted in Pakistan and the requirements of the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (NBFC Rules). 2.2. CHANGE IN ACCOUNTING POLICY Financial Instruments: Recognition and Measurement (IAS-39). Previously, unrealised gain on investments was directly recognised in equity as allowed under SECP exemption vide their letter SC/MF/ED/241/2002 dated June 19, 2002 which was subsequently withdrawn vide their letter No SC/MF/JD/246/2002. As a result unrealised gain on investment of Rs 1,990,187 has been recognised in the income and expenditure account for the year ended June 30, 2004. The opening balance of unrealised gain on investment has been transferred to the opening balance of unappropriated income in accordance with the transitional provisions of IAS-39. There is no impact on the net assets of the fund. 2.3. MARKETABLE SECURITIES The Fund classifies its investments as 'held for trading'. These are, initially measured at cost (which includes transaction cost associated with the investment). Subsequently, each individual security is remeasured to fair value. Fair values for quoted equity instruments are based on quoted bid price of the stock exchange ruling at the balance sheet date. Gain and losses arising on remeasurement of investments to fair value are recognised in the income statement for the year in which it arises. All regular purchases / sales of investments are recognised on the trade date, i.e., the date that the fund commits to purchase / sell the asset. Purchase or sales of investment require delivery of the securities within three days after the transaction date as required by Stock Exchange regulations. 2.4. TAXATION (i) The charge for current taxation is based on taxable income at the current rates of taxation after taking into account tax credits and tax rebates available, if any. (ii) Deferred taxation, if any, is accounted for by using the liability method on all timing difference. However, net deferred tax debits are not recognised. 2.5. REVENUE RECOGNITION (i) Dividend income is recorded at the time of closure of share transfer books of the company declaring dividend. (ii) Sales and purchases of securities are recognised on the date of contract. Capital gains and losses on sale of marketable securities are taken to income in the year in which it arises. 3. MARKETABLE SECURITIES These securities are fully paid-up ordinary shares / certificates of Rs 10/- each, unless stated otherwise. ========================================================================================================================================================================================================
Shares Qty. Balance as at June 30,2005 Percentage in relation to
Name of Company Balance at Purchase Sale Bonus Balance at Carrying Market Market Appreciation/ Own Net Paid-up Total Carrying
June 30, 04 (Qty) (Qty) Shares June 30, 05 Value Rate Value (Depreciation) Assets Capital Value
========================================================================================================================================================================================================
MUTUAL FUNDS:
Abamco Growth Fund (4th lCP) 23,550 - 29,437 5,88 - - - - - - - -
BSJS Balance Fund 5,000 - 5,625 625 - - - - - - - -
PICIC Growth Fund (SEMF) 25,250 613,000 638,250 - - - - - - - - -
PICIC Investment Fund - 481,000 481,000 - - - - - - - - -
Pakistan Prem Fund Ltd - 390,000 397,500 7,500 - - - - - - - -
Pakistan Capital Market Fund 50,000 - 50,000 - - - - - - - - -
MODARABAS:
First Elite Capital Modaraba 37,000 - - - 37,000 49,450 4.20 155,400 105,950 0.34 0.04 0.32
First Interfund Modaraba 500 - - - 500 200 0.55 275 75 0.00 0.00 0.00
First Mehran Modaraba 6,000 - - - 6,000 9,300 1.60 9,000 300 0.06 0.01 0.06
First Pak Modaraba 205,749 - - - 205,749 355,410 1,40 288,049 (67,361) 2.47 0.28 2.27
First Prudential Modaraba 1,000 71,369 1,000 - 71,369 207,824 2.05 146,306 (61,518) 1.44 0.02 1.33
First Habib Bank Modaraba 4,000 - - - 4,000 63,535 12.50 50,000 (13,535) 0.44 0.02 0.41
Unity Modaraba 8,000 - - - 8,000 12,800 0.70 5,600 (7,200) 0.09 0.00 0.08
LEASING:
Askari Leasing Ltd. - 12,000 12,000 - - - - - - - - -
Ibrahim Leasing - 2,000 2,000 - - - - - - - - -
Pak. Ind & Commercial Leasing 180,500 - - - 180,500 442,225 8.50 1,534,250 1,092,025 3.07 0.13 2.82
BANKS AND INVESTMENT Co:
Asset Investment Bank - 5,000 5,000 - - - - - - - - -
Askari Comm Bank Ltd 82 1,094,400 1,094,482 - - - - - - - - -
Arif Habib Securities Ltd - 115,500 115,500 - - - - - - - - -
Bank of Punjab - 1,721,500 1,721,500 - - - - - - - - -
Bank Al-Falah - 367,000 367,000 - - - - - - - - -
Bank Al-Habib Ltd. - 8,500 8,500 - - - - - - - - -
Bolan Bank Ltd. - 10,000 2,500 - 7,500 107,550 13.70 102,750 (4,800) 0.75 0.01 0.69
Crescent Commercial Bank 5,000 120,000 90,000 - 35,000 491,982 10.35 362,250 (129,732) 3.42 0.02 314
Faysal Bank 50 632,000 632,000 5 55 2,076 53.80 2,959 883 0.01 0.00 0.01
1st National Equity - 25,000 25,000 - - - - - - - - -
Muslim Comm Bank Ltd. Reg 20,357 1,487,375 1,506,757 1,500 2,475 150,515 79.30 196,268 45,753 1.05 0.00 0.96
Mezan Bank - 5,000 5,000 - - - - - - - - -
National Bank of Pakistan 420 5,255,200 5,355,620 - - - - - - - - -
P.I.C.I.C. 480 180,500 180,980 - - - - - - - - -
P.I.C.I.C. Commercial Bank Ltd. 58,250 960,000 1,017,500 12,187 12,937 489,773 33.25 430,155 (59,618) 3.41 0.02 3.12
Prime Commercial Bank - 43,500 43,500 - - - - - - - - -
Soneri Bank - 37,000 31,000 - - - - - - - - -
Saudi Pak Comm Bark Ltd 8,333 57,466 - - 65,799 1,085,843 11.35 746,819 (339,025) 7.55 0.05 6.92
Union Bank Limited - 1,017,000 1,015,000 - 2,000 72,587 39.50 79,000 6,413 0.51 0.00 0.46
INSURANCE COMPANY:
Adamjee Insurance Company Limited - 176,000 176,000 - - - - - - - - -
New Jubilee Life Insurance 500 10,000 10,000 - 500 10,729 21.25 10,625 (104) 0.07 0.00 0.07
EFU General Insurance 540 - 100 188 628 9,953 115.30 72,408 62,455 0.07 0.00 0.06
TEXTILE SPINNING:
Awan Textile Mitts Limited 508,500 - - - 508,500 508,500 1.00 508,500 - 3.54 0.59 324
Kohinoor Industries - 6,000 6,000 - - - - - - - - -
Kohinoor Spinning Mills Ltd. 56,000 - - - 56,000 168,000 4.65 260,400 92,400 1.17 0.04 1.07
Nagina Cotton Mills Limited 5,000 - - - 5,000 2,500 26.00 130,000 127,500 0.02 0.00 0.02
Saif Textile - 15,000 - - 15,000 545,154 24.00 360,000 (185,154) 3.79 0.29 3.48
Saitex Spinning Mills Limited 18,500 - - - 18,500 12,950 2.20 40,700 27,750 0.09 0.02 0.08
Saritow Spinning Mills Limited 5,000 - - - 5,000 22,950 6.00 30,000 7,050 0.16 0.02 0.15
Umer Fabrics - 1,000 1,000 - - - - - - - - -
TEXTILE COMPOSITE:
Kohinoor Textile - 153,900 153,900 - - - - - - - - -
Dewan Mushtaq Textile 3,500 - 3,500 100 100 2,853 30.00 3,000 147 0.02 0.01 0.02
Nishat Chunian Limited - 11,000 11,000 - - - - - - - - -
Nishat Mills Limited - 750,000 750,060 60 - - - - - - - -
Sapphire Fibre Limited 4,000 - 4,000 - - - - - - - - -
Schon Textile Mills Limited 76,000 - - - 76,000 60,800 0.65 49,400 (11,400) 0.42 0.05 0.39
Zahoor Textile Mills Limited 2,000 - - - 2,000 2,300 1.00 2,000 (300) 0.02 0.00 0.01
SYNTHETIC & RAYON:
Dewan Salman Fibre Limited 1,500 209,000 210,612 112 - - - - - - - -
Sunshine Cloth Mills Limited 40,600 - - - 40,000 98,000 - - (98,000) 0.68 - 0.62
Pak Synthetic 500 - 500 - - - - - - - - -
SUGAR AND ALLIED INDUSTRIES:
Shakarganj Sugar Mills Ltd. 10,600 - - - 10,000 105,477 49.00 490,000 384,523 0.73 0.04 0.67
Chashma Sugar Mills Ltd. - 80,500 80,500 - - - - - - - - -
J.D.W. Sugar 426,000 426,500 500 - - - - - - - - -
Hasib Waqas Sugar 10,000 - 10,000 - - - - - - - - -
CEMENT:
Chakwal Cement - 125,000 110,000 - 15,000 136,360 7.45 111,750 (24,610) 0,95 0.00 0.87
Charat Cement - - - 25 25 - 61.50 1,538 1,538 - - -
DG. Khan Cement Co Ltd. 71 2,814,600 2,815,150 507 28 1,650 55.75 1,561 (89) 0.01 0.00 0.01
DG. tKhan Cement Co Ltd. Prf 2,392 - - - 2,392 23,920 9.85 23,561 (359) 0.17 0.01 0.15
Dadaboy Cement Limited 20.500 - - - 20,500 138,375 5.10 104,550 (33,825) 0.96 0.03 0.88
Gharibwal 1,000 - 1,000 - - - - * * - - -
Fauji Cement Company 90,000 1,928,000 1,983,200 - 35,000 557,208 12.80 448,000 (109,208) 3.87 0.02 3.55
Dewan Hattar (Sadi Cement) 30,000 - - - 30,000 474.919 9.25 277,500 (197,419) 330 0.03 3.03
Lucky Cement * 2,617,000 3,617,000 - - - - - - - - -
Maple Leaf Cement Factory Ltd. 60,000 2,399,250 2,386,000 - 73,250 2.698,930 21.80 1,596,850 (1,102,080) 18.76 0.15 17.21
Pakland Cement Co Ltd. 17,000 25,000 25,000 - 17,000 299,449 19.00 323,000 23,551 2.08 0.04 1.91
Zeal Pak 5,000 - - - 5,000 71,830 6.00 30,000 (41,830) 0.50 0.00 0.46
Pioneer Cement - 143,000 143,000 - - - - - - - - -
REFINERY:
Attock Refinery - 228,900 228,900 - - - - - - - - -
Bosicar Pakistan - 20,000 20,000 - - - - - - - - -
National Refinery 400 - 400 - - - - - - - - -
POWER GENERATION & DISTRIBUTION:
Hub Power Company Limited 70,000 1,170,000 1,240,000 * - - - - - - - -
Japan Power Generation Ltd. - 10,000 10,000 - - - - - - - - -
Karachi Electric Supply Corp. 25,000 - - - 25,000 212,268 5.45 136,250 (77,018) 1.48 0.00 1.36
Southern Electric Power Co. Limited 333 27,000 18,000 33 9,366 112,624 6.95 65,094 (47,531) 0.78 0.01 .0.72
OIL & GAS MARKETING COMPANIES:
Pakistan State Oil Co Ltd. 1,680 2,648,000 2,649,680 - - - 386.00 - - - - -
Sui Northern Gas Pipeline 68 2,898,700 5,898,668 - 100 6,080 61.30 6,130 50 0.04 0.00 0.04
Sui Southern Gas Companies 25,600 910,000 935,000 - - - - - - - - -
OIL & GAS EXPLORATION COMPANIES:
Pak Oil Field Ltd. 160 2,648,200 5,648,360 - - - - - - - - -
Oil & Gas Dev Co. 11,553 10,994,600 11,006,153 100 100 9,034 105,30 10,530 1.496 0.06 0.00 0.06
Attock Petroleum - 6,000 6,000 - - - - - - - - -
Pakistan Petroleum Ltd. - 767,400 766,900 - 500 71,451 215.10 107,550 36,099 0.50 0.00 0.46
AUTO MOBILE ASSEMBLER
Dewan Farooq Motors 2,500 290,000 292,500 125 125 3,145 19.20 2,400 (745) 0.02 0.00 0.02
TRANSPORT:
Pakistan Intl Container - 36,000 35,000 - - - - - - - - -
PIAC - 385,000 380,000 - 5,000 11,779 8.55 42,750 (29,029) 0.50 0.00 0.46
TECHNOLOGY & COMMUNICATIONS:
Pak Telecomm Co Limited - 9,919,500 9,919.500 - - - - - - - - -
TRG Pakistan - 110,000 110.000 - - - - - - - - -
Telecard Limited - 140,000 140,000 - - - - - - - - -
WorldCall Comm Ltd. 250 - 250 - - - - - - - - -
FERTILISER:
Engro Chem (Pakistan) Ltd 10,800 1,045,100 1,055,900 - - - - - - - - -
Fauji Fertilizer Comp Ltd - 1,143,379 1,146,150 5,250 2,479 318,072 121.35 300,827 (17,245) 2.21 0.01 2.03
FFC-Bin Qasim Ltd. 114,606 6,015,000 6,109,500 - 25,106 561,755 26.90 540,851 (20,904) 3.91 0.01 3.58
CHEMICAL:
Bifo Industries - 2,000 2,000 - - - - - - - - -
ICI Pakistan Limited - 195,000 198,000 - - - - - - - - -
Nimir Ind. & Chem. - 1,437,500 1,340,000 - 97,500 609,854 2.85 277,875 (331,979) 424 0.07 3.89
Pakistan PTA 15,000 71,000 86,000 - - - - - - - - -
MISCELLANEOUS:
Echopack - 4,666,500 4,580,000 - 86,500 4,213,230 49.60 4,290,400 77,170 29.29 2.95 26.86
Total: 1,884,374 74,761,339 74,859,334 34,704 1,821,083 15,684,170 14,765,680 2,093,128
(3,011,617)
========================================================================================================================================================================================================3.1. NET UNREALISED APPRECIATION IN MARKET VALUE OF SECURITIES - HELD FOR TRADING=============================================================================================
2005 2004
Rupees Rupees
=============================================================================================
Market value of marketable securities 14,765,680 23,856,686
Less: Cost of marketable securities (15,684,170) (21,866,499)
(918,490) 1,990,187
Less: Net unrealised appreciation in market value
of securities at the beginning of the year (1,990,187) -
(2,908,677) 1,990,187
=============================================================================================4. CASH AND BANK BALANCES=============================================================================================
2005 2004
Rupees Rupees
=============================================================================================
CASH IN HAND:
Cheques in hand 4,000 4,400
Cash at banks -Current accounts 660,496 -
- Deposit accounts 81,544 996 088
746,040 1,000,488
=============================================================================================5. DEPOSITS AND PREPAYMENTS=============================================================================================
2005 2004
Rupees Rupees
=============================================================================================
Prepayments (Others) 10,266 31,825
Prudential Fund Management Limited - 48,233
Due From Stock Brokers - 377,574
10,266 457,632
=============================================================================================6. REMUNERATION PAYABLE TO THE INVESTMENT ADVISOR=============================================================================================
2005 2004
Note Rupees Rupees
=============================================================================================
Balance as on July 1 485,547 511,344
Add: Received during the year (485,547) (511,344)
2% net assets 6.1 421,006 485,547
421,006 485,547
=============================================================================================6.1. Under the provisions of the NBFC Rules, the investment Advisor of the company is entitled to a remuneration, to be paid annually after the financial statements of the company have been audited, during the first five years of the company, of an amount not exceeding 3% of the average annual net assets of the company and thereafter of an amount equal to 2% of such assets of the company.The investment Advisor has charged its remuneration for the current year at the rate of 2% per annum: =============================================================================================
2005 2004
Rupees Rupees
=============================================================================================
ASSETS:
Marketable securities at market value 14,765,680 23,856,686
Advances, prepayments and other receivable 595,177 1,143,009
Cash and bank balances 746,040 1,000,488
16,106,898 26,000,183
LIABILITIES:
Due to investment advisor - an associated company 421,006 485 547
Accounts payable, accrued experience & other liabilities 336,116 257:430
Unclaimed dividend 435,830 435,830
Provision for taxation 600,739 544,008
1,793,691 1,722,815
Net assets 14,313,207 24,277,368
2% of average net assets per month 421,006 485,547
=============================================================================================7. ACCRUED EXPENSES AND OTHER LIABILITIES=============================================================================================
2005 2004
Rupees Rupees
=============================================================================================
Prudential Fund Management Limited 130 - -
SECP Annual Fee 21,056 --
Audit fee 165,000 125,000
Others 149,930 132,430
336,116 257,430
=============================================================================================8. PROVISION FOR TAXATION=============================================================================================
2005 2004
Rupees Rupees
=============================================================================================
600.739 544,008
=============================================================================================The Income tax assessments of the company have been finalised up to and including assessment year 2003-2004 9. ISSUED, SUBSCRIBED AND PAID-UP-CAPITAL =============================================================================================
2005 2004
Rupees Rupees
=============================================================================================
ORDINARY SHARES OF Rs 10/-EACH:
5,000,000 Shares Issued as fully paid in cash 50,000,000 50,000,000
1,000,000 Shares Issued as fully paid bonus shares 10,000,000 10,000,000
60,000,000 60,000,000
=============================================================================================10. CONTINGENCIES & COMMITMENTSA suit has been filed in Sindh High Court claiming holding of shares and control of management of companies of Prudential Group including the fund. The plaintiff has prayed to enforce the alleged agreement excited between him and Ex-Chairman of Prudential Group. The Fund is defending its position in the case by strongly opposing the same. The said prayer is not likely to succeed as the allegation in question is not based fact and even otherwise it is not legally binding on the Fund because the Fund was not party to the alleged agreement made between two individual in their personal capacity. The case is pending in the Honourable High Court of Sindh The Fund confident that the ultimate outcome of the case would not affect the status and position of the Fund. 11. CAPITAL (LOSS)/GAIN =============================================================================================
2005 2004
Note Rupees Rupees
=============================================================================================
Sale 5,693,844,695 4,245,720,192
Less: Cost of sale 11.1 (5,700,858,321) (4,245,504,287)
(7,013,625) 215,905
=============================================================================================11.1. COST OF SALES=============================================================================================
2005 2004
Rupees Rupees
=============================================================================================
Average cost of marketable securities as on 1 July 21,866,499 22,563,737
Purchases 5,694,675,992 4,244,807,049
5,716,542,491 4,267,370,786
Less: Average cost of marketable securities as
on June 30 (15 684 170) (21,866 499)
5,700,858,321 4,245,504,287
=============================================================================================12. ADMINISTRATIVE EXPENSES=============================================================================================
2005 2004
Rupees Rupees
=============================================================================================
Director Meeting Fee 85,885 24,500
Association Fee 38,911 52,050
124,796 76,550
=============================================================================================12.1. AUDITORS' REMUNERATION=============================================================================================
2005 2004
Rupees Rupees
=============================================================================================
Audit Fee 140,000 125,00
Out of Pocket Expenses 5,000 2,250
145,000 127,250
=============================================================================================13. RELATED PARTY TRANSACTION=============================================================================================
2005 2004
Rupees Rupees
=============================================================================================
Remuneration for services 421,006 485,547
Expenses paid on behalf of investment Advisor - -
=============================================================================================14. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES14.1. INTEREST RATE RISK EXPOSURE The company's exposure to interest rate risk and the effective rates on Its financial assets and liabilities as at 30 June 2005 are summarised as follows: ===================================================================================================
Interest Bearing Non-Interest Total Total
Less than Bearing 2005 2004
One Month
===================================================================================================
FINANCIAL ASSETS:
Marketable Securities - 14,765,680 14,765,680 23,856,686
Advances, Prepayments and other receivable - 595,178 595,178 1,143,009
Cash and Bank balances 81,544 664,496 746,040 1,000,488
81,544 16,025,354 16,106,898 26,000,183
Average mark-up rates of financial assets 2-3%
FINANCIAL LIABILITIES:
Due to Investment Advisor - 421,006 421,006 485547
Accrued expenses and other liabilities - 336,116 336,116 257,430
Unclaimed dividend - 435.830 435,830 435,830
- 1,192,952 1,192,952 1,178,807
===================================================================================================14.2. CREDIT RISK AND CONCENTRATION OF CREDIT RISKThe company believes it is not exposed to major concentration of credit Risk. 14.3. FAIR VALUE OF FINANCIAL INSTRUMENTS The carrying value of all the financial instruments reflected in the Financial Statements approximate their fair values. 15. EARNINGS PER SHARE =============================================================================================
2005 2004
=============================================================================================
Net Loss for the year (9,964,160) 2,124,051
Number of Ordinary Shares during the year 6,000,000 6,000,000
(1.66) 0.35
=============================================================================================16. DATE OF AUTHORISATIONThese financial statement were authorised for issue on October 10, 2005 by the board directors of the company. 17. GENERAL (a) Figures have been rounded off to the nearest rupee. (b) Figures have been rearranged and regrouped wherever necessary for the purpose of comparison. |