| Prudential Stocks Fund Ltd - 2006 |
====================================================================================== STATEMENT OF ASSETS AND LIABILITIES FOR THE YEAR ENDED JUNE 30, 2006 ====================================================================================== Note 2006 2005 Rupees Rupees ====================================================================================== ASSETS Marketable Securities "held for trading" 3 12,955,402 14,765,680 Cash and Bank balances 4 804,917 746,040 Dividend receivables 1,154 355,537 Deposits, prepayments and other receivable 5 357,591 10,266 Advance taxation 242,257 229,374 Total Assets 14,361,321 16,106,898 LIABILITIES Remuneration payable to 6 316,524 421,006 the Investment Advisor Accrued expenses and other liabilities 7 137,160 336,116 Unclaimed dividend 435,830 435,830 Provision for Taxation 8 626,912 600,739 1,516,426 1,793,691 NET ASSETS 12,844,895 14,313,207 SHARE HOLDERS'S 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 (47,155,105) (45,686,793) Contingencies & Commitments 10 - - 12,844,895 14,313,207 ======================================================================================INCOME STATEMENT FOR THE YEAR ENDED JUNE 30, 2006 ======================================================================================
Note 2006 2005
Rupees Rupees
======================================================================================
Capital (Loss)/Gain on sale 11 1,262,303 (7,013,625)
of marketable securities
Unrealized (loss)/gain in Market 3.1 (2,170,227) (2,908,677)
value of Securities
classified as "held for trading"
Dividend income 523,446 1,134,624
Profit on bank deposits 48 3,401
(384,430) (8,784,277)
Operating Expenses
Administrative 12 94,905 124,796
Listing, regulatory fee 45,826 163,216
Legal and professional charges 297,914 219,600
Custody fee 55,780 44,059
Auditors' remuneration 12.1 96,000 145,000
Bank charges 1,754 5,475
Remuneration to the Investment Advisor 6 316,524 421,006
908,703 1,123,152
(Loss)/Profit before taxation (1,293,133) (9,907,429)
Taxation - Current (26,173) (56,731)
(Loss)/Profit after taxation (1,319,306) (9,964,160)
Prior year Adjustments 14 (149,006) -
Accumulated (loss) brought forward (45,686,793) (35,722,632)
Accumulated (loss) carried forward (47,155,105) (45,686,793)
Earnings per share 15 (0.22) (1.66)
======================================================================================CASH FLOW STATEMENT FOR THE YEAR ENDED JUNE 30, 2006======================================================================================
2006 2005
Rupees Rupees
======================================================================================
CASH FLOW FROM OPERATING ACTIVITIES
Profit/(loss) before taxation (1,293,133) (9,907,429)
Adjustments for:
Loss / (gain) due to change in lair value
of marketable securities 2,170,227 2.908,677
Prior years Profit/Loss (149,006) -
728,087 (6,998,752)
(INCREASE) / DECREASE IN OPERATING ASSETS:
Marketable securities (359,949) 6,182,329
Advances, prepayments and other receivables (5,824) 547,831
INCREASE/ (DECREASE) IN
OPERATING LIABILITIES
Due to the investment advisor (104,482) (64,542)
Accounts payable, accrued expenses (198,955) 78,686
and other liabilities
Cash generated from operations 58,877 (254,448)
Cash and Bank Balance at the beginning of year 746,040 1,000,488
Cash and Bank Balance at the end of year 804,917 746,040
======================================================================================STATEMENT OF MOVEMENT IN EQUITY AND RESERVES FOR TILE YEAR ENDED JUNE 30, 2006======================================================================================
2006 2005
Rupees Rupees
======================================================================================
Net Assets per Share at 01 July 2.39 4.05
Gain/(Loss) on sale of Marketable Securities 0.21 (1.17)
Gain/(Loss) due to change in fair value of
Marketable Securities (0.36) (0.48)
Net Income for the Year (0.07) (0.01)
excluding Capital Gain / (Loss)
Profit/(Loss) for the year - per share (0.22) (1.66)
Prior year adjustments of Marketable Securities (0.02) -
Net Assets per Share at end of the year 2.14 2.39
======================================================================================DISTRIBUTION STATEMENT FOR THE YEAR ENDED JUNE 30, 2006======================================================================================
2006 2005
Rupees Rupees
======================================================================================
Accumulated (Loss) B/Fwd. (45,686,793) (35,722,632)
Prior years Profit/Loss (149,006) --
Profit/(Loss) for the year (1,319,306) (9,964,160)
(47,155,105) (45,686,793)
Appropriation:
Proposed Dividend - -
Accumulated (Loss) C/Fwd. (47,155,105) (45,686,793)
======================================================================================NOTES TO THE ACCOUNTS FOR THE YEAR ENDED. JUNE 30, 20061. 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 (lClAFi-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 Accounts 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 recognized 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 unrealized gain on investment of As. 1,990,187 has been recognized in the income and expenditure account for the year ended June 30, 2004. The opening balance of unrealized 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 recognized in the income statement for the period in which it arises. All regular purchases / sales ot investments are recognized 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 recognized. 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 recognized on the date of contract. Capital gains and losses on sale of marketable securities are taken to income in the period in which it arises. 3. MARKETABLE SECURITIES HELD FOR TRADING These securities are fully paid-up ordinary shares / certificates of Rs. 10/. each, unless stated otherwise. ==========================================================================================================================================================================================
Shares Qty. Balance as at June 30,2006 Percentage in relation to
==========================================================================================================================================================================================
Name of Company Balance at Purchase Safe Bonus Balance at Carrying Market Market Appreciation/ Own Net Paid-up- Total/Carrying
July 01, 05 (000) (Qty) Shares June 30, 06 Value Rate Value (Depreciation) Assets Capital Value
June 30, 06
==========================================================================================================================================================================================
MODARABAS
First Elite Capital Modaraba 37,060 - - - 37,000 49,450 3.70 136,900 87,450 0.38 0.04 0.31
First Interfund Modaraba 500 - - - 500 200 0.55 275 75 0.00 0.00 020
First Mehran Modaraba 6,000 - - - 6,050 9,300 2.80 16,806 7,500 0.07 0.01 0.06
First Pak Modaraba 205,749 - 205,749 - - - - - - - - -
First Prudential Modaraba 71,369 - 5,000 - 66,369 193,264 3.00 199,107 5,843 1.50 0.02. 1.20
First Habib Modaraba 4,000 - - - 4,000 63,535 9.30 37,200 (26,235) 0.49 0.02 0.40
Unity Modaraba 8,000 - - - 8,000 12,800 0.80 6,406 (6,400) 0.10 0.00 0.08
LEASING
Pak. Intl. & Comm. Leasing 180,500 - 50,000 130,500 319,725 2.35 206,675 (13,050) 2.49 0.10 1.99
BANKS AND INVESTMENTC0.
Allied Bank Ltd. - 15,500 11,500 - - - - - - - - -
Askari Comm Bank - 85,000 85,000 - - - - - - - - -
Bank of Punjab - 1,961,600 1,964,600 3,298 298 31,289 82.70 24,645 (6,645) 0.24 0.00 0.20
Bank Alfalah Ltd - 45,000 45,000 - - - - - - - - -
My Bank (Bolan Bank Ltd) 7,500 27,625 35,000 - 125 2,576 19.95 3,494 (82) 0.22 0.00 0.02
Crescent Commercial Bank 35,000 5,000 40,000 - - - - - - - -
sFaysal Bank 55 129,500 129,500 17 72 5,889 61.50 4,428 (1,461) 0.05 0.00 0.04
1st National Equity - 104,500 104,500 - - - - - - - - -
Jahangir Sidd Inv. - 26,000 26,000 - - - - - - - - -
MCB Bank Ltd Reg. 2,475 961,000 963,900 515 90 18,894 210.30 18,927 33 0.15 0.00 0.12
National Bank of Pakistan Ltd 1,373,500 1,373,508 - - - - - - - - -
P.I.C.I.C. - 37,000 37,000 900 900 52,818 42.50 38,250 (14,568) 0.41 0.00 0.33
PICIC Commercial Bank Ltd. 12,937 50,000 20,000 2,587 45,524 1,708,380 25.05 1,140,375 (568,004) 13.30 0.06 10.65
Saudi Pak Comm Bank Ltd 65,799 13,899 45,000 - 33,698 538,236 13.85 466,717 (71,519) 4.19 021 0.06
Saudi Pak Comm Right - 20,000 20,800 - - - - - - - - -
Union Bank Limited 2,000 20,000 22,000 - - - - - - - - -
United Bank Ltd - 62,500 62,500 - - - - - - - - -
INSURANCE COMPANY -
New Jubilee Life Insurance 500 - - - 500 10,729 22.00 11,000 271 0.08 0.00 0.07
EFU General Insurance 628 - - 425 1,053 9,953 152.00 160,056 150,103 0.08 0.00 0.06
TEXTILE SPINNING
Awan Textile Mills Limited 508,500 - - - 508,500 508,500 0.35 177,975 (330,525) 3.96 0,59 3.17
Kohinoor Spinning Mills Ltd. 56,000 - - - 56,000 168,000 4.40 246,400 78,400 1.31 0.01 1.05
Dewan Mushtaq Textile 100 - - 10 110 2,853 31.00 3,410 557 0.02 0.01 0.02
Nagina Cotton Mills Limited 5,000 - - - 5,000 2,500 20.50 102,500 100,000 0.02 0.00 0.02
Saif Textile 15,000 - - - 15,000 545,154 19.80 297,000 (248,154) 4.24 0.29 3.40
Saitex Spinning Mills Limited 18,500 - - - 18,500 12,950 1.00 18,500 5,550 0.10 0.02 0.08
Sarit bow Spinning Mills Limited 5,000 - - - 5,000 23,950 4.50 22,500 (450) 0.18 0.02 0.14
TEXTILE COMPOSITE
Chenab Ltd - 100,000 75,000 - 25,000 580,745 14.55 363,750 (216,995) 4.52 0.05 3.62
Kohinoor Spinning Mills Ltd - - - 350 350 - 31.75 11.113 11,113 - - -
Nishat Mills Limited - 282,500 282,500 - - - - - - - - -
Schon Textile Mills Limited 76,000 - - - 76,000 60,800 0.65 49,400 (11,400) 0.47 0.05 0.38
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 - 10,000 10,000 - - - - - - - - -
Sunshine Cloth Mills Limited 40,000 - - - 40,000 98,000 1.00 40,000 (58,000) 0.76 0.12 0.61
SUGAR AND AWED INDUSTRIES
Shakarganj Sugar Mills Ltd 10,000 2,500 - 1,500 14,000 167,977 27.50 385,000 217,023 1.31 0.03 1.05
Shares Qty. Balance as at June 30,2006 Percentage in relation to
Name of Company Balance at Purchase Safe Bonus Balance at Carrying Market Market Appreciation/ Own Net Paid-up- Total/Carrying
July 01, 05 (Qty) (Qty) Shares June 30, 06 Value Rate Value (Depreciation) Assets Capital Value
June 30, 06
CEMENT
Pakistan Cement (Chakwal) 15,006 - 15,000 - - - - - - - - -
Charat Cement 25 - - 131 156 - 65.00 10,140 - - - -
D.G. Khan Cement Co. Ltd 28 473,500 468,500 - 5,028 513,567 90.00 452,520 (61,047) 4.00 0.03 3.20
D.G. Khan Cement Co. Ltd Prt 2,392 - - - 2,392 23,920 11.90 28,465 4,545 0.19 0.01 0.15
Dadabhoy Cement Limited 20,500 30,000 30,000 - 20,500 276,4 9 8.70 178,350 (98,148) 2.15 0.06 1.72
Dandot Cement - 40,000 40,000 - - - - - - - - -
Fauji Cement Company 35,00 951,500 891,500 - 95,000 2,287,874 19.20 1,824,000 (463,874) 17.81 0.06 14.26
Dewan Hattar (Sadi Cement) 30,000 - 15,060 - 15,000 237,459 11.50 172,500 (64,959) 1.85 0.01 1.48
Gharibwal Cement - 50,000 15,060 - 35,000 568,037 13.20 462,000 (100,037) 4.42 0.03 3.54
Lucky Cement - 398,500 398,500 - - - - - - - - -
Maple Leaf Cement Factory Ltd. 73,250 1,214,500 1,269,500 7,825 26,075 1,106,341 25.60 667,520 (438,821) 8.61 0.04 6.90
Dewan Cement (Pakland Cement) 17,000 71,000 88,000 - - - - - - - - -
Zeal Pak 5,000 - - - 5,000 71,830 6.75 33,750 (38,080) 0.56 0.00 0.45 -
REFINERY
Bosicar Pakistan - 70,000 70,060 - - - - - . - - - -
POWER GENERATION & DISTRIBUTION
Karachi Electric Supply Corpn. 25,000 40,000 50,060 - 15,000 149,749 7.70 115,500 (34,249) 1.17 0.00 0.93
KAPCO - 392,500 390,000 - 2,500 125,368 42.10 105250 (20,118) 0.98 0.00 0.78
Southern Electric Power Co, Limited 9,366 - - - 9,366 112,624 6.60 61,816 (50,809) 0.88 0.01 0.70
OIL & GAS MARKETING COMPANIES
Pakistan State Oil Co. Ltd - 439,500 439,500 - - - - - - - - -
Sui Northern Gas Pipelines Co. Ltd. 100 190,500 190,500 - 100 10,598 100.00 10,000 (598) 0.08 0.00 0.07
Sui Southern Gas - 5,000 5,000 - - - - - - - - -
OIL & GAS EXPLORATION COMPANIES
Pak Oil Field LTd - 1,189,500 1,189,500 - - - - - - - - -
Oil & Gas Dev. Co. 100 3,415,000 3,415,000 - 100 13,663 136.75 13.675 12 0.11 0.00 0.09
Pakistan Petroleum Ltd. 500 943,500 844,060 - - - - - - - - -
AUTOMOBILE ASSEMBLER
Dewan Farooq Motors 125 - - - 125 3,145 23.25 2,906 (239) 0.02 0.00 0.02
TRANSPORT
PIAC 5,000 5,000 5,000 - 5,000 62,742 13.70 68,500 5,758 0.49 0.00 0.39
PNSC - - 500 4,390 3,890 - 63.10 245,459 245,459 - - -
TECHNOLOGY & COMMUNICATIONS
Pak Telecom Co. Limited - 832,500 832,500 - - - - - - - - -
Callmatt Telpis - 5,000 5,000 - - - - - - - - -
Telecard Ltd - 65,000 35,000 - 30,000 521,371 11.35 340,500 (180,871) 4.06 0.02 3.25
TRG Pakistan - 25,000 - - 25,000 316,32 - 10.05 251,250 (64,782) 2.46 0.01 1.97
WorldCall BroadBand - 15,000 15,000 - - - - - - - - -
WorldCall Telecom - 20,350 - - 26,350 325,532 8.95 235,833 (89,700) 2.53 0.00 2.03
FERTILIZER
Engro Chem (Pakistan) Ltd - 42,500 42,500 - - - - - - - - -
Fauji Fertiliser Comp Ltd. 2,479 154,400 156,700 126 305 40,261 121.00 36,905 (3,356) 0.31 000 0.25
FFC-Bin Qasim Ltd. 20,106 800,500 820,000 - 606 22,411 29.25 17,726 (4,685) 0.17 0.00 0.14
CHEMICAL
Nimir Ind. & Chem. 97,540 8,125 90,000 - 15,625 96,225 4.70 73,438 (22,787) 0.75 0.01 0.60
ICI Pakistan - 30,000 - - - - - - - - -
MISCELLANEOUS
Echopack 86,500 - 6,000 12,975 93,475 3,959,102 34.85 3,257,604 (701,499) 30.82 2.41 24.68
Siddiqsons Tin Plate - 10,060 10,000 - - - - - - - - -
==========================================================================================================================================================================================
1,821,083 17,261,499 17,585,949 35,049 1,531,682 16,044,119 12,955,402 (3088,716) 100
==========================================================================================================================================================================================3.1. NET UNREALISED APPRECIATION IN MARKET VALUE OF SECURITIES - HELD FOR TRADING======================================================================================
2006 2005
Rupees Rupees
======================================================================================
Market value of marketable securities 12,955,402 14,765,680
Less: Cost of marketable securities (16,044,119) (15,684,170)
(3,088,717) (918,490)
Less: Net unrealized appreciation in market value
of securities at the beginning of the year 918,490 (1,990,187)
(2,170,227) (2,908,677)
======================================================================================4. CASH AND BANK BALANCES======================================================================================
2006 2005
Rupees Rupees
======================================================================================
Cash in hand 4,000 4,000
Cash at banks -Current accounts 783,971 660,496
- Deposit accounts 16,946 81,544
804,917 746,040
======================================================================================5. DEPOSITS, PREPAYMENTS AND OTHR RECEIVABLE======================================================================================
2006 2005
Rupees Rupees
======================================================================================
Prepayments (Others) 4,486 10,266
Prudential Fund Management Limited 83,078 -
Due From Stock Brokers 270,028 -
357,591 10,266
======================================================================================6. REMUNERATION PAYABLE TO THE INVESTMENT ADVISOR======================================================================================
2006 2005
Note Rupees Rupees
======================================================================================
Balance as on 01 July 421,006 485,547
Add: Received during the year (421,006) (485,547)
2% net assets 6.1 316,524 421,006
316,524 421,006
======================================================================================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 changed its remuneration for the current year at the rate of 2% per annum:ASSETS ======================================================================================
2006 2005
Rupees Rupees
======================================================================================
Marketable securities at market value 12,955,402 14,765,680
Advances, prepayments and other receivable 601,002 595,177
Cash and bank balances 804,917 746,040
14,361,322 16,106,897
Liabilities
Due to investment advisor - an associated company 316,524 421,006
Accounts payable, accrued expenses & other liabilities 137,160 336,116
Unclaimed dividend 435,830 435,830
Provision for taxation 626,912 600,739
1,516,426 1,793,690
Net assets 12,844,896 14,313,207
2% of average net assets per month 316,524 421,006
======================================================================================7. ACCRUED EXPENSES AND OTHER LIABILITIES======================================================================================
2006 2005
Rupees Rupees
======================================================================================
Prudential Fund Management Limited - 130
SECP Annual Fee 15,826 21,056
Audit fee 65,000 165,000
Others 56,334 149,930
137,160 -
======================================================================================8. PROVISION FOR TAXATION ======================================================================================
2006 2005
Rupees Rupees
======================================================================================
626,912 600,739
======================================================================================The Income tax assessments of the company have been finalized upto and including-assessment year 2002-20039. ISSUED, SUBSCRIBED AND PAID-UP-CAPITAL ======================================================================================
2006 2005
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 (LOSSY GAIN) ======================================================================================
2006 2005
Rupees Rupees
======================================================================================
Sale 2,603,503,645 5,693,844,695
Less: Cost of sale 11.1 (2,602,241,342) (5,700,858,321)
1,262,303 (7,013,625)
======================================================================================11.1. COST OF SALES======================================================================================
2006 2005
Rupees Rupees
======================================================================================
Average cost of marketable securities as on 01 July 15,684,170 21,866,499
Purchases 2,602,601,291 5,694,675,992
2,618,285,461 5,716,542,491
Less: Average cost of marketable securities as
(16,044,119) (15,684,170)
on 30th June. 2,602,241,342 5,700,858,321
======================================================================================12. ADMINISTRATIVE EXPENSES======================================================================================
2006 2005
Rupees Rupees
======================================================================================
Director Meeting fee 66,200 85,885
Association Fee 28,705 38,911
94,905 124,796
======================================================================================12.1. AUDITORS' REMUNERATION======================================================================================
2006 2005
Rupees Rupees
======================================================================================
Audit Fee 90,000 140,000
Out of Pocket Expenses 6,000 5,000
96,000 145,000
======================================================================================13. RELATED PARTY TRANSACTION======================================================================================
2006 2005
Rupees Rupees
======================================================================================
Remuneration for services 316,524 421,006
Sale 205794 shares of First Pak Modaraba 245,254 -
Sale 5000 shares of First Prudential Modaraba 17,549 -
Dividend Received from First Prudential Modaraba 17,842 -
======================================================================================14. PRIOR YEARS ADJUSTMENTS======================================================================================
2006 2005
Rupees Rupees
======================================================================================
Dividend receivable prior year 349,972 -
Reversal of SECP filing fee (1,620) -
Dividend recorded wrongly (94,346) -
Audit fee payable (105,000) --
149,006 -
======================================================================================15. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES15.1. 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 2006 are summerized as follows: ===================================================================================================
Interest Bearing Non-Interest Total Total
Less than Bearing 2006 2005
One Month
===================================================================================================
Financial Assets
Marketable Securities - 12,955,402 12,955,402 14,765,680
Advances, Prepayments and other receivable - 601,002 601,002 595,178
Cash and Bank balances 16,946 787971 804,917 746,040
===================================================================================================
16,946 14,344,375 14,361,321 16,106,898
===================================================================================================
Average mark-up rates of financial assets 2-3%
Financial Liabilities
Due to Investment Advisor - 316,524 316,524 421,006
Accrued expenses and other liabilities - 137,160 137,160 336,116
Unclaimed dividend - 435,830 435,830 435,830
===================================================================================================
- 889,514 889,514 1,192,952
===================================================================================================15.2. CREDIT RISK AND CONCENTRATION OF CREDIT RISKThe company believes it is not exposed to major concentration of credit Risk. 15.3. FAIR VALUE OF FINANCIAL INSTRUMENTS The carrying value of all the financial instruments reflected in the Financial Statements approximate their fair values. 16. EARNINGS PER SHARE ======================================================================================
2006 2005
Rupees Rupees
======================================================================================
Net Loss for the year (1,319,306) (9,964,160)
======================================================================================
No. of Ordinary Shares during the year 6,000,000 6,000,000
======================================================================================
(0.22) (1.66)
======================================================================================17. DATE OF AUTHORIZATIONThese financial statement were authorised for issue on October 07, 2006 by the board of directors of the company. 18. 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. |