2011 National Security Bank
Annual Bank Report
nsb
Index
Corporate data.................................................................. Board of Director............................................................... Chairman’s report............................................................. Director’s Report............................................................... Auditor’s Report................................................................ New Services Offered.......................................................
Super Fast Service
Customer Banking Services
Current Accounts
Adult Savings
Accounts Fixed
Deposit Accounts
Junior Accounts
Golden Age Savings Accounts
Investment Accounts
Loan Facilities
Facts and Figures: ...........................................................
4 5 6 7 8 9
9
NSB Ltd. Income Categories
Portfolio of Investments .................................................... Profit and Loss Account ................................................... Statement of Cash Flows ................................................. Balance Sheet Mission Statement....................................
10 12 13 14
National Security Bank | Annual report
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nsb Our mission is to encourage and foster investments. Our people should save and invest until they have enough capital to go into their own business. In Canada we need more people to be business owners, and who have a stake in the country. It is by these means that we can build the economy of the country and so help build the nation.
Corporate
Data
National Security Bank 186 Nautilus Boulevard, Victoria, BC, V8V 5E7, Canada. T. (250) 388-7000- 5, 388-2011; F. (250) 388-7599 Trustee: Scottybank Canada Trust & Merchant Bank Limited 30 Non Street, Victoria, BC, V8V 1LO. Registrar: Scottybank Canada Trust & Merchant Bank Limited 30 Non Street, Victoria BC V8V 1LO. Auditors: Pryce Dryhouse, Scotty Centre Non Street, Victoria BC V8V 1LO. Secretary: Chief Corporation, Scotty Centre Non Street, Victoria BC V8V 1LO. Bankers: Scottybank Canada Limited Supersuperior Bank Canada Limited Companies Bank Limited Attorneys-At-Law: Dum, Cow, Ferrit and Oldenham 11 Any Street, Victoria BC V8V 1LO Real Estate Appraisers A.R. Alexis & Company Limited 1 Sea Street, Victoria BC V8V 1LO. C.D. Variance & Tinsel Company Limited 2 Ding Dong Road, Victoria BC V8V 1LO. Mickey, Masonary & Company LImited 43 Lord Mess Road, Victoria BC V8V 1LO. Advertising Agents: Grinmost Advertising Limited 80 Hunting Road, Victoria BC V8V 1LO. Stockbrokers: BRT Investments Limited 14 St. Hilda’s Road, Victoria BC V8V 1LO. Bronco Investments Limited 30 Micro Close, Victoria BC V8V 1LO. Second Landmark Canada Stockbrokers Limited, 50 Dice Drive, Dice Court, Suite Z, Victoria BC V8V 1LO. Maybe Investments Limited 123/4 Knotts Circle, Victoria BC V8V 1LO. DTR Stockbrokers Limited 20 Knotts Circle, Victoria BC V8V 1LO. Denture Stockbrokers Limited 67 Maddaxe Drive, Victoria BC V8V 1LO. Ritzy Stockbrokers Limited 2 Hobourne Road, Victoria BC V8V 1LO.
National Security Bank | Annual report
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Board Of
Directors
John Smith, Chairman, National Security Bank Limited
James Doe, Vice President, Life Insurance Company Limited
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Lady Katherine Anil, Chairperson, Holme & Giffe Funds Limited
National Security Bank | Annual report
Sin Gin James, General Manager, Ginnal Investments Limited
Hon. Marie Ruth, President, Resource Services International Limited
Martin Dons, Group Finance Director, ACWO Group Limited
Chairman’s
Report
National Security Bank is an old and respected bank which has given 150 years of profitable service as an investment bank to select companies. In March of 2010 the bank was acquired by Seam Investments Limited and a new Board of Directors and Management Team appointed. In keeping with Seam’s people-oriented policies NSB opened its doors to the general public and placed at their disposal years of investment and banking knowledge. We offer friendly service and investment advice through new and varied account options, and look forward to expanding our customer base through 2011 to the new millennium. In the year under review, the Trust Funds that invest in stocks and shares were affected by the continued fluctuations in the values of Stocks at home and abroad. On 4th November 2011 NSB introduced daily pricing of Unit Trust Funds, a major change from the weekly pricing which had been in effect since 2008. During the year, sales of new units amounted to $4,250 million. Encashments totalled $1,700 million. In the year under review, the economy continued through a period of change. Features of business activity during this period were concerns about the value of the dollar, high interest rates and high levels of inflation. The Canadian dollar remained stable during the period at C$ 1.66 to US$1.00. Interest rates have continued to be high; deposit rates are in the 2% per annum range and lending rates are at 6% and above. The Canadian Stock Market experienced a period of fluctuating activity as values and volumes rose and declined. The Stock Exchange Index moved from 13,100 points at the start of the period under review to 15,300 points at the end of April 1998. In January 1999 the Index was at 19,600 points. Activity on the Stock Market has continued in a declining mode. At the date of this Report, the Index was at 14,500 points. At the end of February 2010 Dr. J. Nite, Mrs. V. Audit and Mr. M. Mighty resigned from the Board of Directors. I must record our deep appreciation of the contributions made by the former Board over a period of many years. Our present Board was elected on 1st March 2010, and we look forward to a long and profitable relationship with them. I wish to record our thanks and appreciation to our Unit holders for their support. I must express my thanks to the Directors for their support and to the Management and Staff for their hard work and dedication.
John Smith, Chairman, 20th March, 2011.
nsb National Security Bank | Annual report
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Director’s
Report
The Directors of National Security Bank Limited submit herewith their report for the year ended 30 April 2010 together with the Audited Accounts for the year ended on that date.
Accounts Profit for the year
$ 59,000,167
Add. Balance brought forward
$ 203,666,234 $ 262,666,401
Bonus share issue
$ (55,200,000) $ 212,466,401
Bonus Share Issue On 28th March, 2010, the Authorized Share Capital of the Company was increased by 100,000,000 Shares of 50 cents each. Shares totalling 90,750,000 were issued to existing shareholders as Bonus Shares by capitalization of $51,750,000 from retained earnings. The Bonus issue was in the proportion of eighteen Ordinary Shares for every on Share held at 28th March, 2010. Dividends The Directors do not recommend that a Dividend be declared for the year ended 30th April, 2010. Directors In accordance with the Company’s Articles of Association, Dr J. Nite, Mrs. V. Audit and Mr. M. Mighty resigned from the Board of Directors. The present Directors of the Company are Lady Katherine Anil, the Hon. Marie Ruth, Messrs.John Smith, James Doe, Martin Dons, and Sin Gin James. Auditors Pryce Dryhouse, the retiring Auditors, have signified that they are willing to continue office in accordance with the provisions of Section 153 of the Companies Act. ON BEHALF OF THE BOARD OF DIRECTORS
John Smith, Chairman Dated this 20th day of March 2011.
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National Security Bank | Annual report
Auditor’s
Report
PRYCE DRYHOUSE 18 March 1996 To the members of National Security Bank Limited, Victoria We have examined the financial statements of National Security Bank Limited and have obtained all the information and explanations which we required. Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary. In our opinion proper accounting records have been maintained and the financial statements, which are in agreement therewith and have been prepared under the historical cost convention, comply with the provisions of the Companies Act and give a true and fair view of the state of the company’s affairs at 30 April 1999 and of the results of operations and cash flows for the year then ended.
Chartered Accountants
New Services
Offered
Super fast service NSB offers a numbered service system and plenty of comfortable seating while you wait. A Special Care Teller is available for Golden Agers, expectant Mums and the injured. Customer Banking services Current Accounts Free cheque books and 1.25% interest per annum come with accounts with balances over $2,000. Overdraft facilities are available on an individually-negotiated basis. You receive monthly balance sheets, a complimentary cash withdrawal card, and a chance to win an all expenses paid trip for two to Martinique! Good Luck! Adult savings Accounts We offer 6.5% interest per annum on accounts which maintain an annual balance of over $50,000.00, and 7% interest on accounts which maintain an annual average of over $100,000.00 per annum. Fixed Deposit Accounts At present we offer Fixed Deposit Accounts for amounts over $1,000.00 with interest rates of 5%-6%. Junior Accounts We offer special Junior Accounts geared towards saving towards further education; young people with a consistent monthly savings record will be eligible for student loans at .25% below the average interest rate at the time of application. Golden Age savings Accounts Golden Age Savings Accounts are available to our senior citizens over the age of 60. All Golden Age Savings Accounts will receive a minimum of 5.5% annual interest and are automatically Tax Free! Investment Accounts We can arrange individual investment accounts for amounts over $10,000.00. Our knowledge of local and Foreign stock markets a helps us to advise you on the most profitable investment decisions to be implemented in any one of 5 international stock exchanges within minutes. We also offer mixed portfolio packages and a range of Blue Chip shares. Loan facilities We offer excellent rates of interest on a variety of loans, with special consideration and easy payback facilities to students and cases of emergency.
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National Security Bank | Annual report
Facts &
Figures
Why should you invest with us? If our long term records of successful growth are not convincing enough, have a look at the facts and figures over the past 5 years. The bank recorded revenue of $15.8 million in the 1997-98 financial year, reflecting a growth of 18% over the previous year. Earnings from overseas investments continued to be the primary source of income, contributing 14% to total revenue; substantial contributions came from local investments, earnings from loans, and investment and service charges.
NSB Limited income categories 1993-1998 Finacial Loans Local Local Foreign year investments stocks & stock & shares shares 2006 2007 2008 2009 2010
Total Income
1.00 billion 1.50 billion 2.80 billion 3.50 billion 7.00 billion
1.50 billion 1.80 billion 2.20 billion 3.20 billion 3.50 billion
0.50 billion 0.75 billion 1.00 billion 1.50 billion 1.10 billion
1.20 billion 1.15 billion 2.70 billion 4.00 billion 4.40 billion
4.20 billion 5.50 billion 8.70 billion 11.20 billion 16.00 billion
15.80 billion
12.20 billion
4.85 billion
13.45 billion
46.30 billion
Total Income over the past 5 years 2006— $4.2 Billion 2007— $ 5.5 Billion 2008— $8.7 Billion 2009— $11.2 Billion 2010— $16 Billion
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Portfolio of
Investments 30 April 2010 Holdings Equities 800,000 Scotty Bank Canada Limited 1,000,002 Cappy Finance Group 1,400,000 Tropicana Cement Company Ltd. 3,800,002 Careers Group Ltd. 500,400 COTS Ltd. 30,000 COTS Carib Ltd. 205,400 Peoples Bank Ltd 900,000 Dail Group Ltd 1,400,000 Cleaner Company Ltd 3,500,000 Goody’s Canada Ltd 500,800 Gracias Jose & Company Ltd 250,000 Cay Life Insurance Ltd 1 Indy’s Developments Ltd 3,080 Boilers Group Ltd 612,700 Flower Power Ltd 113,200 Mercury Ltd 1,300,200 Jamhappy Ltd 3,500,000 NSB Ltd 10,000 Radio Uplift Canada Ltd 2,500 Prods Ltd 780,900 Photocomms USA 810,000 Pymco Development Bank Ltd 99,000 W’s Savings Bank Ltd Fixed Interest 12,000 111/2 % Government Stock 2011 6,000 12 % Registered Stock 2010 Carried Forward Brought Forward
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National Security Bank | Annual report
$
Valuation at asking price
% of Fund
13,600.400 2,000,000 12,600,000 12,600,000 7,500,000 630,000 1,250,500 9,500,000 6,420,000 3,200,500 10,000,000 3,900,000 6 21,600 5,200,200 4,500,555 4,800,200 2,500,200 47,000 24,500 5,700,000 4,200,000 3,750,200 110,56,183
100.58
7,755 39,000 46,800 110,700,003 0.03 110,700,003 100.55
Portfolio of
Investments Coporate Debentures & Preference Shares 30 April 2010 Holdings Equities
Valuation at % of asking price Fund
100,000 71/2 %The Canada Sleeperstock Association Ltd, Cumulative Preference Shares
$ 300,000
135,053 113/5 % National Investments Company Ltd, Variable rate, 2009
$ 137,000
350 5 % Canada Light Ltd
$
130
11,7500 5 % Canada Light Ltd, preference “D”
$
5,000
44,700 6 % Canada Light Ltd,preference “E”
$
17,900
13,700 7 % Canada Light Ltd, preference “B”
$
5,500
200 51/2 % Canada Phones Ltd, cumulative preference shares
$
75
300 6 % Canada Phones Ltd, cumulative preference shares
$
115
63,500 25 % People’s Bank Ltd, cumulative preference shares
$
63,500
27,000 20 % People’s Bank Ltd, cumulative preference shares
$
32,000
580,000 111,190,500
0.54 101.14
Cash & Sundries Deposits, receivables and other assets, less income available for distribution, payables and other liabiites. Total value of deposited property
(1,296,058) 1.15 109,900,500 100.00
National Security Bank | Annual report
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Profit
& Loss Account Year ended 30th April 2010
2009 $
2010 $
Gross Income Expenses Profit Before Taxation Taxation Net Profit Retained earnings at beginning of
116,000,200 45,870 50,281,500 30,670,050 607,500,400 4,600,800 900,500,400 4,600,800 45,000,200 9,600,400 102,800,500 98,000,900 150,600,234 107,800,000
Appropriations Bonus issue Dividend gross Retained Earnings
44,900,000 - 4,998,200 44,900,000 4,998,200 104,700,778 100,88,546
Statement of
Cash Flows
Financial Resource were provided by/ (used in) Operating Activites 1998 New Profit
$
Items not affecting cash resources, Deprecation
$
47,700,150
1997 $
1,700,250
Gain on sale of fixed investment
9,500,600
$ 1,106,500
-
$
-
$
50500,250
$
10,350,000
Changes in non-cash working capital components Taxation
$
8,095,400
$
1,500,800
Other receivables
$
(7,600,200) $
Payables
$
3,900,800
$
(5,048,100)
Canada Investment Fund
$
15,300,200
$
30,400,500
$
70,200,100
$
37,700,600
$
(190,500)
Investment activities acquisition of fixed assets Proceeds from sale of investments
-
400,100
$
(4,000,000)
$
490,000
Purchase of investments
$
(3,200,900)
$
(200,000)
Cash used in investments activites
$
(3,500,700)
$
(3,800,250)
National Security Bank | Annual report
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Balance
Sheet 30th April 2010 Investment of capital Investments (Cost $70,300,500; 1997—97,200,000) Current Assets Receivables Deposits Cash
2009 $
2011 $
110,200,000
104,200,100
6,300,100 53,000,303 32,900,800
6,600,150 25,500,450 89,250
85,000,280 Current Liabilites National Security Bank Investment Trust Services Ltd 59,100,200 Payables 215,200 Dividend payable 26,350,010
33,200,800
Net Current Liabilities
70,900,517 (38,700,600) 65,200,900
84,002,343 (1,250,000) 110,920,580
Capital Invested Capital Account Investment Revaluation Reserve
51,700,400 194,100 19,100,900
75,300,600 34,900,000
59,450,000 6,840,900
109,980,600
65,500,400
ON BEHALF OF CANADA INVESTMENT TRUST SERVES LTD
John Smith The number of units in issue at 30th April 2010 was (a) Income (b) Accumulation
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National Security Bank | Annual report
41,999,800 (1997—20,470,900) 31,500,135 (1997—29,700,000)
James Doe