UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-3056
TRIDAN CORP.
(Exact name of registrant as specified in charter)
261 West 35th Street, 16th floor, New York, NY 10001
(Address of principal executive offices)
I. Robert Harris, c/o Kantor, Davidoff, Wolfe, Mandelker & Kass, P.C.
51 East 42nd Street, New York, NY 10017
(Name and address of agent for service)
Registrant's telephone number, including area code: (212) 239-0515
Date of fiscal year end: April 30, 2008
Date of reporting period: October 31, 2007
Item 1. Reports to Stockholders.
Attached on the following pages is a copy of the registrant's
semi-annual report as of October 31, 2007 transmitted to
stockholders.
TRIDAN CORP.
- --------------------------------------------------------------------------------
261 West 35th Street, 16th Floor, New York, N.Y. 10001
(212) 239-0515
SEMI-ANNUAL REPORT
December 27, 2007
Dear Shareholder:
This semi-annual report of Tridan Corp. covers the six-month period from
May 1, 2007 to October 31, 2007. As part of this report, we enclose the
unaudited financial report for that six-month period and for the corresponding
period in 2006.
A schedule of the company's portfolio holdings at October 31, 2007,
consisting entirely of municipal obligations, is included in the financial
report. The company invests exclusively in non-voting securities. The company
files its complete schedule of portfolio holdings with the Securities and
Exchange Commission for the first and third quarters of each fiscal year on Form
N-Q. The company's Forms N-Q are available on the Commission's website at
http://www.sec.gov. They may be reviewed and copied at the Commission's Public
Reference Room in Washington D.C., and information on the operation of the
Public Reference Room may be obtained by calling 1-800-SEC-0330.
The net asset value per share at October 31, 2007 was $12.00, compared
with $12.17 at October 31, 2006. Net investment income per share was $.19 for
the six-month period ended October 31, 2007, compared with $.20 for the
six-month period ended October 31, 2006.
At the company's last annual meeting on June 19, 2007, the reappointment
of Weiser LLP as the company's auditors for the fiscal year ending April 30,
2008 was ratified by the shareholders as follows:
Shares Voted For 2,774,276
Shares Voted Against None
Shares Abstaining None
Tridan Corp.
December 27, 2007
Page - 2 -
Also at the last annual meeting, the incumbent directors, all of whom are
named below, were all reelected to serve as directors until the next annual
meeting of shareholders, or until their successors are elected and have
qualified.
Shares Voted For Shares Withheld
---------------- ---------------
Mark Goodman 2,774,302 None
Peter Goodman " "
Paul Kramer " "
Jay S. Negin " "
Warren F. Pelton " "
Russell J. Stoever " "
During the six-month period ended October 31, 2007, no director or officer
received any compensation from the company except for fees of $6,000 paid to
each director, plus an additional $2,500 to Paul Kramer as chairman of the audit
committee. All executive officers of the company as a group (two persons)
received compensation (comprised solely of said directors' fees) aggregating
$12,000 during said period (which excludes professional fees paid to the law
firm of which I. Robert Harris, secretary of the company, is a member).
At its meeting on May 24, 2007, the Board of Directors unanimously
approved the renewal of the company's investment advisory agreement with J.P.
Morgan Investment Management Inc. for the period July 1, 2007 to June 30, 2008 .
The board considered a variety of material factors and conclusions with respect
thereto that formed the basis for the board's approval, as discussed below.
Throughout the year, the directors received and analyzed a substantial
quantity of comprehensive information and written materials, including ongoing
analysis of Tridan's existing portfolio and Morgan's recommendations in light of
its forecasts for the economy, employment trends, business conditions, federal
rate moves, interest trends including comparisons between tax-exempt and taxable
bonds, appropriate maturities, quality, yields, diversification, etc. The
directors subject Morgan's portfolio management to scrutiny at each board
meeting, including examination of transactions completed since the prior meeting
and an overview of the entire portfolio. Written materials received by the
directors before and during each meeting include reports, statistics, charts,
graphs, performance records, comparisons with other funds and the like. Morgan
is constantly questioned at great length regarding its views, its
recommendations and its performance.
In addition to the foregoing, as requested by Tridan's corporate counsel
pursuant to Section 15(c) of the Investment Company Act of 1940, Morgan
submitted its audited
Tridan Corp.
December 27, 2007
Page - 3 -
financial statements and detailed information regarding Morgan's business,
personnel and operations, advisory services, compensation matters, portfolio
strategy, investment performance, sources of information, fee comparisons,
compliance programs, and other matters of significance to the relationship
between Tridan and its investment adviser, all of which material was furnished
to each director. The directors reviewed all of this material and discussed the
same at length, as well as their own views on Morgan's previous performance and
relationship with Tridan, with particular attention to the following areas:
Investment Performance
At each meeting, the directors receive, review and discuss with Morgan's
representatives various data showing Tridan's portfolio characteristics,
including market value, average duration, credit quality, coupon, estimated
annual income and yield statistics, and breakdown information regarding
duration, credit, and investment sectors. Morgan's quarterly presentation also
includes the portfolio performance over three months, year to date, one year,
three years, five years and ten years, compared with the Lipper NY Intermediate
Muni Debt Funds, JPMorgan NY Tax Free Bond Fund, Sanford Bernstein NY Muni Fund,
and Lehman 1-17 Year NY Muni Bond Index. Based on their review, the directors
all agreed that Tridan's relative investment performance has been satisfactory.
Nature, Extent and Quality of Service
The board's analysis of the nature, extent and quality of Morgan's
services to Tridan was based on knowledge gained over time from discussions with
management and at the board's regular meetings. In addition, the directors
reviewed materials contained in Morgan's response to Tridan's 15(c)
Questionnaire pursuant to the Investment Company Act of 1940, and its Form ADV
under the Investment Advisers Act of 1940 concerning, among much other
information, the qualifications, education and experience of Morgan's personnel
involved in rendering those services. As Tridan's investment adviser, Morgan
manages the investment of the Company's assets, including purchases and sales of
securities, and arranges for the periodic transfer of cash required to pay
expenses and make distributions to shareholders. Morgan also provides clerical
and bookkeeping services, and prepares and issues periodic reports and
statements. Its affiliate maintains custody of Tridan's securities and provides
access thereto upon request. The board considered its adviser's performance of
these administrative and support services, including monitoring adherence to the
company's investment policies, guidelines and restrictions, Morgan's
responsiveness to requests by Tridan's counsel for periodic information, reports
and certifications required for compliance with securities laws and regulations,
and maintaining and monitoring their respective compliance programs in light of
today's extensive regulatory requirements. The board concluded that the nature,
extent
Tridan Corp.
December 27, 2007
Page - 4 -
and quality of the services provided by Morgan to the company have been and
continue to be appropriate and beneficial.
Fees
Under its Investment Advisory Agreement with Morgan, Tridan pays an annual
fee, computed and payable quarterly, equal to 0.28% of its net assets under
management. The agreement requires Morgan to bear all expenses incurred by it in
connection with its activities under the agreement, without any reimbursement
from the company. In addition, there is no charge made to Tridan for maintaining
custody of the company's securities and for custodial-related services rendered
by Morgan and its affiliates. In light of the nature, extent and quality of the
services received by Tridan from Morgan and its affiliated companies, and
comparing the management fees charged by Morgan to other fixed-income investment
companies managed by it, all of which are many times larger than Tridan, the
Board considers Morgan's management fee to Tridan to be reasonable.
After full consideration of the above factors, the board concluded
unanimously that renewal of the investment advisory agreement with J.P. Morgan
Investment Management Inc. was in the best interest of Tridan and its
shareholders.
Sincerely
TRIDAN CORP.
Peter Goodman, President
TRIDAN CORP.
FINANCIAL REPORT
(Unaudited)
OCTOBER 31, 2007 AND 2006
TRIDAN CORP.
(Unaudited)
TABLE OF CONTENTS
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Page
----
Accountant's Report 1
Financial Statements
Statements of Assets and Liabilities 2
Schedules of Investments in Municipal Obligations 3
Statements of Operations 7
Statements of Changes in Net Assets 8
Notes to Financial Statements 9
[LETTERHEAD OF SCIALO & COMPANY CPA, P.C.]
To the Shareholders and Board of Directors
Tridan Corp.
We have compiled the accompanying statements of assets and liabilities, and
schedules of investments in municipal obligations of Tridan Corp. as of October
31, 2007 and 2006, the related statements of operations for the six months then
ended and changes in net assets for the six months ended October 31, 2007, and
financial highlights (Note 6 to the financial statements) for each period in the
six months ended October 31, 2003 through 2007, in accordance with Statements on
Standards for Accounting and Review Services issued by the American Institute of
Certified Public Accountants.
A compilation is limited to presenting in the form of financial statements
information that is the representation of management. We have not audited or
reviewed the aforementioned financial statements and financial highlights and,
accordingly, do not express an opinion or any other form of assurance on them.
The statement of changes in net assets for the year ended April 30, 2007 was
derived from financial statements that were audited by another accounting firm.
Their report, dated May 24, 2007, expressed an unqualified opinion thereon, but
they have not performed any auditing procedures since that date.
We are not independent with respect to Tridan Corp.
Scialo & Company CPA, P.C.
Ramsey, New Jersey
December 4, 2007
Certified Public Accountants & Consultants
TRIDAN CORP.
STATEMENTS OF ASSETS AND LIABILITIES
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(Unaudited)
OCTOBER 31,
2007 2006
------------ ------------
ASSETS
Investments in municipal obligations,
at market value (amortized cost of
$36,168,600 and $36,279,305, respectively) $ 36,834,825 $ 37,250,388
Cash and cash equivalents 66,017 219,930
Accrued interest receivable 522,327 512,344
Prepaid expenses 2,500 2,500
------------ ------------
37,425,669 37,985,162
------------ ------------
LIABILITIES
Accounts payable and accrued liabilities
Accrued investment advisory fees 26,000 27,350
Accrued fees and disbursements - affiliate 50,185 49,892
Accrued other 20,000 -.-
------------ ------------
Common stock redemption payable 27,212 6,105
------------ ------------
123,397 83,347
NET ASSETS $ 37,302,272 $ 37,901,815
============ ============
Analysis of net assets
Common stock, at $.02 par value,
6,000,000 shares authorized $ 63,982 $ 63,982
Paid in capital 36,748,767 36,826,094
Over distributed investment income, net (128,074) (21,302)
Under (Over) distributed capital gains (48,244) 61,958
Unrealized appreciation of investments, net 665,841 971,083
------------ ------------
Net assets, equivalent to $12.00 and $12.17
per share based on 3,108,256.2781 and
3,114,709.7468 shares of common stock
outstanding, respectively $ 37,302,272 $ 37,901,815
============ ============
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See accompanying notes and accountant's report. - 2 -
TRIDAN CORP.
SCHEDULES OF INVESTMENTS IN MUNICIPAL OBLIGATIONS
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(Unaudited)
OCTOBER 31,
2007 2006
---------------------------------------- ----------------------------------------
Principal Amortized Market Principal Amortized Market
Amount Cost Value Amount Cost Value
---------- ---------- ---------- ---------- ---------- ----------
Bethlehem N.Y.
Central School District
5.000%, due November 1, 2015 $ 500,000 $ 539,893 $ 543,975 $ 500,000 $ 544,737 $ 549,925
Cattaraugus Cty
NY Public Unlimited tax
5.000%, due June 1, 2014 275,000 292,039 293,502 275,000 294,554 295,851
5.000%, due June 1, 2015 275,000 291,226 293,216 275,000 293,306 296,686
City of Buffalo, NY Sewer Auth.
5.00%, due July 1, 2011 1,110,000 1,158,316 1,169,740 1,110,000 1,170,687 1,178,121
City of New York
General Purpose Unlimited Tax
6.750%, due February 1, 2009 500,000 513,856 520,396 500,000 521,324 534,882
Clarkstown NY Central
School District
5.250%, due April 15, 2015 400,000 428,797 434,752 400,000 432,503 440,364
Cleveland Hill Union Free
School District
5.500%, due October 15, 2011 1,480,000 1,494,202 1,551,262 1,480,000 1,497,181 1,574,320
Chenango Valley
NY Central School District
4.000%, due June 15, 2011 190,000 193,195 193,709 190,000 196,381 193,530
Jay Street Development Corp.
Var. Rate, due May 1, 2020 -.- -.- -.- 1,200,000 1,200,000 1,200,000
LIPA, Var. rate, due May 1, 2033 100,000 100,000 100,000 -.- -.- -.-
Metropolitan Transportation Authority
N.Y. SVC Contract
Var. rate, due November 1, 2026 100,000 100,000 100,000 -.- -.- -.-
Var. rate, due November 1, 2029 -.- -.- -.- 100,000 100,000 100,000
Monroe County, N.Y. - Rochester
Pub Improvement
6.000%, due June 1, 2010 10,000 9,683 10,246 10,000 10,033 10,480
6.000%, due March 1, 2012 445,000 484,897 488,872 445,000 493,598 496,918
Mt. Sinai, N.Y. Union Free School District
AMBAC Insured 6.200%, due Feb.15, 2011 1,070,000 1,068,238 1,160,041 1,070,000 1,067,916 1,183,024
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See accompanying notes and accountant's report. - 3 -
TRIDAN CORP.
SCHEDULES OF INVESTMENTS IN MUNICIPAL OBLIGATIONS
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(Unaudited)
OCTOBER 31,
2007 2006
---------------------------------------- ----------------------------------------
Principal Amortized Market Principal Amortized Market
Amount Cost Value Amount Cost Value
---------- --------- --------- ---------- ---------- ----------
Municipal Securities Trust
Var. Rate, due March 15, 2016 $ -.- $ -.- $ -.- $ 100,000 $ 100,000 $ 100,000
N.Y.C. Municipal Water, Fin. Auth.
6.000%, due June 15, 2009 -.- -.- -.-
Var. Rate, due June 15, 2025 -.- -.- -.- 100,000 100,000 100,000
N.Y.S. Dormitory Authority - State
University Educational Facilities
7-1/2%, due May 15, 2011 420,000 417,079 455,016 450,000 445,792 499,152
N.Y C. Ref. Unltd. tax
6.000%, due May 15, 2030 150,000 175,783 161,010 150,000 176,881 163,686
NYC Trans.Fin. Auth. Rev.
Var. Rate, due November 15, 2027 -.- -.- -.- 100,000 100,000 100,000
Var. Rate, due November 1, 2022 100,000 100,000 100,000 -.- -.- -.-
5.000%, due July 15, 2016 750,000 816,191 814,912 -.- -.- -.-
N.Y.S. Thruway Authority
5.250%, due April 1, 2013 1,000,000 1,073,310 1,080,360 1,000,000 1,086,543 1,093,080
5.000%, due April 1, 2017 -.- -.- -.- 1,000,000 1,077,690 1,082,460
N.Y.S. Dormitory Authority
Pace University
6.500%, due July 1, 2009 1,000,000 1,027,752 1,050,590 1,000,000 1,039,356 1,075,000
N.Y.S. Dormitory Authority
Revs. Supported Debt
5.000%, due February 15, 2021 1,035,000 1,075,057 1,098,435 1,035,000 1,077,973 1,111,300
N.Y.S. Environmental Facilities
Pollution Control - Revolving Fund
5.750%, due June 15, 2008 190,000 190,943 192,797 190,000 191,906 196,817
5.200%, due May 15, 2014 575,000 620,158 610,817 575,000 626,693 635,622
5.250%, due December 15, 2012 400,000 433,337 432,876 400,000 439,685 436,388
5.000%, due June 15, 2018 1,000,000 1,057,278 1,071,450 1,000,000 1,063,539 1,089,140
N.Y.S. Dormitory Authority Revs.
5.250%, due November 15, 2023 1,400,000 1,517,278 1,489,082 1,400,000 1,524,197 1,506,932
5.500%, due July 1, 2019 1,000,000 1,108,147 1,133,600 1,000,000 1,117,490 1,160,800
5.00%, due July 1, 2020 1,745,000 1,828,542 1,865,387 1,745,000 1,835,132 1,896,012
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See accompanying notes and accountant's report. - 4 -
TRIDAN CORP.
SCHEDULES OF INVESTMENTS IN MUNICIPAL OBLIGATIONS
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(Unaudited)
OCTOBER 31,
2007 2006
---------------------------------------- ----------------------------------------
Principal Amortized Market Principal Amortized Market
Amount Cost Value Amount Cost Value
---------- ---------- ---------- ---------- ---------- ----------
N.Y.S. Dormitory Authority
City University General
5.750%, due July 1, 2013 $ 215,000 $ 236,246 $ 230,246 $ 215,000 $ 239,839 $ 234,969
N.Y.S. Local Gov't. Asst. Corp.
5.500%, due April 1, 2017 240,000 264,242 269,609 240,000 266,753 274,327
Var. rate, due April 1, 2025 -.- -.- -.- 100,000 100,000 100,000
N.Y.S. Dormitory Authority Revs.
5.000% due Oct. 1, 2017 585,000 630,431 630,215 -.- -.- -.-
5.000%, due Oct. 1, 2018 430,000 467,085 466,163 -.- -.- -.-
5.250%, due July, 1, 2021 1,000,000 1,114,202 1,113,730 -.- -.- -.-
N.Y.S. Housing Fin. Svc. Contract
Var. rate, due March 15, 2026 100,000 100,000 100,000 100,000 100,000 100,000
N.Y.S. Dormitory Authority Revs.
Personal Income Tax
5.500%, due March 15, 2011 1,000,000 1,051,678 1,063,830 1,000,000 1,065,719 1,079,030
5.500%, due March 15, 2018 1,155,000 1,300,836 1,304,780 1,155,000 1,314,676 1,332,293
NYS Urban Dev. Corp
Var. rate, due March 15, 2033 100,000 100,000 100,000 -.- -.- -.-
Nassau County Interim, Fin. Auth., N.Y
5.750%, due November 15, 2013 1,100,000 1,121,181 1,175,724 1,100,000 1,125,166 1,193,192
Nassau Health Care Corp.
Var. rate, due August 1, 2029 100,000 100,000 100,000 100,000 100,000 100,000
New York, NY Gen'l. Obligation
Var. rate, due March 1, 2034 -.- -.- -.- 95,000 95,000 95,000
Niagara Falls Bridge
Commission NY Toll Rev Hwy
1 MPT Series B
5.250%, due October 1, 2015 2,000,000 2,089,104 2,146,880 2,000,000 2,103,353 2,171,200
Niagara County, Var. Rate,
Due Sept. 1, 2021 120,000 120,000 120,000 -.- -.- -.-
Pleasantville N.Y. Public
Impt. Unlimited tax
5.000%, due January 1,2016 $ 440,000 $ 475,696 $ 476,801 $ 440,000 $ 480,009 $ 482,812
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See accompanying notes and accountant's report. - 5 -
TRIDAN CORP.
SCHEDULES OF INVESTMENTS IN MUNICIPAL OBLIGATIONS
- --------------------------------------------------------------------------------
(Unaudited)
OCTOBER 31,
2007 2006
------------------------------------------- -------------------------------------------
Principal Amortized Market Principal Amortized Market
Amount Cost Value Amount Cost Value
----------- ----------- ----------- ----------- ----------- -----------
Puerto Rico Electric Power
Authority Star & Stripe
5.500%, due July 1, 2017 700,000 776,736 790,559 700,000 784,546 804,139
Port Authority of NY and NJ
Var. rate, due January 1, 2024 100,000 100,000 100,000 -.- -.- -.-
Puerto Rico Commonwealth
Highway & Transp. Auth.
5.00%, due July 1, 2035 -.- -.- -.- 1,000,000 1,084,702 1,048,970
Puerto Rico Commonwealth
Highway and Trans
5.500%, due July 1, 2015 500,000 549,852 558,795 500,000 556,050 568,530
6.250%, due July 1, 2016 285,000 329,208 336,309 285,000 334,070 343,824
Puerto Rico Public Buildings
Auth. Rev. GTD Ref
5.000%, due July 1, 2028 500,000 512,728 518,440 500,000 513,322 526,890
Sachem Central School District
5.250%, due Oct. 15, 2019 500,000 556,018 555,865 -.- -.- -.-
Suffolk County Water
Authority
6.000%, due June 1, 2009 1,000,000 1,019,088 1,024,600 1,000,000 1,030,541 1,047,600
Suffolk County Judicial
FACS Agency
5.750%, due October 15, 2011 1,340,000 1,357,000 1,409,466 1,340,000 1,358,983 1,437,832
Triborough Bridge and Tunnel
Authority N.Y. Revs.
6.000%, due January 1, 2012 1,500,000 1,530,744 1,586,350 1,500,000 1,536,754 1,624,110
5.500%, due January 1, 2017 1,000,000 1,017,249 1,103,450 1,000,000 1,019,518 1,120,700
5.500%, due January 1, 2019 1,000,000 1,134,079 1,136,970 1,000,000 1,145,207 1,164,480
Var. rate, due January 1, 2032 -.- -.- -.- 100,000 100,000 100,000
----------- ----------- ----------- ----------- ----------- -----------
$34,230,000 $36,168,600 $36,834,825 $34,270,000 $36,279,305 $37,250,388
=========== =========== =========== =========== =========== ===========
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See accompanying notes and accountant's report. - 6 -
TRIDAN CORP.
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
(Unaudited)
SIX MONTHS ENDED
OCTOBER 31,
2007 2006
----------- -----------
Investment income
Interest $ 933,428 $ 934,940
Amortization of bond premium and
discount - net (125,559) (117,771)
----------- -----------
Total investment income 807,869 817,169
----------- -----------
Expenses
Investment advisory fee 52,108 52,154
Professional fees 69,050 48,600
Directors' fees 38,500 37,250
Administrative fees 36,000 36,000
Insurance and administrative expenses 8,304 9,383
----------- -----------
Total expenses 203,962 183,387
----------- -----------
Investment income - net 603,907 633,782
----------- -----------
Realized and unrealized gain on investments
Net realized gain (loss) on investments (48,244) 152,415
Change in unrealized appreciation (depreciation) of
investments for the period (21,659) 388,638
----------- -----------
Net gain (loss) on investments (69,903) 541,053
----------- -----------
Net increase (decrease) in assets resulting
from operations $ 534,004 $ 1,174,835
=========== ===========
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See accompanying notes and accountant's report. - 7 -
TRIDAN CORP.
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
2007 2007
------------ ------------
(Unaudited) (Audited)
Increase (decrease) in net assets resulting
from operations
Investment income - net $ 603,907 $ 1,230,850
Net realized gain (loss) on investments (48,244) 152,416
Change in unrealized appreciation (depreciation) (21,659) 105,057
------------ ------------
Net increase (decrease) in net assets resulting
from operations 534,004 1,488,323
------------ ------------
Redemptions of 4278.7380 (October 31, 2007)
And 2676.4352 shares (April 30, 2007) (51,120) (32,311)
------------ ------------
Distributions to shareholders:
Investment income - net (tax exempt) (715,722) (1,212,033)
Long-term capital gains - net -.- (220,756)
------------ ------------
(715,722) (1,432,789)
------------ ------------
Total increase (decrease) (232,838) 23,223
------------ ------------
Net assets
Beginning of period 37,535,110 37,511,887
------------ ------------
End of period, including
- Net overdistributed
investment income $(128,074) and $(16,260),
in October 2007 and April 2007, respectively
- Net undistributed capital gains of $-0- and
$-0- in October 2007 and April 2007,
respectively $ 37,302,272 $ 37,535,110
============ ============
- --------------------------------------------------------------------------------
See accompanying notes and accountant's report. - 8 -
TRIDAN CORP.
NOTES TO FINANCIAL STATEMENTS
SIX MONTHS ENDED OCTOBER 31, 2007 AND 2006
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
The following is a summary of the significant policies followed by Tridan
Corp. (the "Company"), a closed-end, non-diversified management investment
company registered under the Investment Company Act of 1940, in the
preparation of its financial statements.
Acquisition and Valuation of Investments
Investment transactions are accounted for on the date the securities are
purchased/sold (trade date) and interest on securities acquired/sold is
included in income from/to the settlement date. Investments are carried at
amortized cost in the Company's accounting records but are shown at market
value in the accompanying financial statements. Short-term investments are
stated at cost, which is equivalent to market value.
Fair values for the Company's investments in municipal obligations have
been determined based on the bid price of the obligation, if available; if
not available, such value is based on a yield matrix for similarly traded
municipal obligations. Securities for which quotations are not readily
available are valued at fair value as determined by the Board of
Directors. There were no securities valued by the Board of Directors,
which quotations were not readily available as of October 31, 2007 and
2006.
Amortization of Bond Premium or Discount
In determining investment income, bond premiums or discounts are amortized
over the remaining term of the obligation.
Income Taxes
It is the Company's policy to comply with the requirements of the Internal
Revenue Code that are applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no income tax provision is required; however, the Company is
subject to minimum New York State and local franchise taxes.
Interest income from municipal investments are exempt from Federal and
state income taxes.
Cash and Cash Equivalents
The Company considers all investments that can be liquidated on demand to
be cash equivalents.
October 31,
2007 2006
--------- ---------
Cash $ 2,971 $ 24,356
Cash equivalents - demand bonds and notes 63,046 195,574
--------- ---------
$ 66,017 $ 219,930
========= =========
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See accountant's report. - 9 -
TRIDAN CORP.
NOTES TO FINANCIAL STATEMENTS
SIX MONTHS ENDED OCTOBER 31, 2007 AND 2006
- --------------------------------------------------------------------------------
1. Significant Accounting Policies (continued)
The Company maintains all of its cash and cash equivalents in one
financial institution. At times, such balances may be in excess of amounts
insured by the Federal Deposit Insurance Corporation.
Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases
in net assets from operations during the reporting period. Actual results
could differ from those estimates. Significant estimates are used when
accounting for the valuation of securities and the realization of
investment.
Concentration of Credit Risk
The value of the Company's investments may be subject to possible risks
involving, among other things, the continued creditworthiness of the
various state and local government agencies and public financing
authorities underlying its investments. The Company and its investment
advisor periodically consider the credit quality of the Company's
investments, and the Company adheres to its investment objective of
investing only in investment grade securities.
2. Accounts Payable and Accrued Liabilities
Accounts payable and accrued liabilities consisted of the following at:
October 31,
2007 2006
--------- ---------
Accrued investment advisory fees (a) $ 26,000 $ 27,350
Accrued fee - affiliate (b) 50,185 49,892
Accrued accounting fees and other 20,000 -.-
--------- ---------
$ 96,185 $ 77,242
========= =========
(a) The Company utilizes the services of J.P. Morgan Investment
Management, Inc. ("J.P Morgan") as its investment advisor and
custodian for its investments. The annual advisory fee is .28
of one percent of the net assets under management. The fee is
computed and payable quarterly, based on the aggregate fair
value of the net assets on the last day of each fiscal
quarter.
- --------------------------------------------------------------------------------
See accountant's report. - 10 -
TRIDAN CORP.
NOTES TO FINANCIAL STATEMENTS
SIX MONTHS ENDED OCTOBER 31, 2007 AND 2006
- --------------------------------------------------------------------------------
2. Accounts Payable and Accrued Liabilities (continued)
(b) For the six months ended October 31, 2007 and 2006, the
Company incurred legal fees of approximately $49,050 and
$48,600, respectively, paid to the law firm of which an
officer of the Company is a Member.
(c) For the six months ended October 31, 2007 and 2006, the
Company incurred audit fees of approximately $20,000 and $-0-,
respectively.
3. Investment Transactions
Purchases and sales of investments in municipal obligations (excluding
short-term and demand investments) amounted to approximately $2,215,929
and $2,135,420, respectively, for the six months ended October 31, 2007
and $4,518,686 and $5,443,395, respectively, for the six months ended
October 31, 2006.
The U.S. Federal income tax basis of the Company's investments, at October
31, 2007 and 2006, was approximately $36,168,600 and $36,279,305,
respectively, and net unrealized appreciation at October 31, 2007 and
2006, for U.S. Federal income tax purposes was approximately $665,841 and
$971,083, respectively (gross unrealized appreciation of approximately $
684,224 and $1,048,294, respectively, gross unrealized depreciation of
approximately $ 18,383 and $77,211, respectively.
4. Common Stock, Net Asset Values and Share Redemption Plan
At October 31, 2007 and 2006, there were 6,000,000 shares of $0.02 par
value common stock authorized of which 3,199,100 had been issued
aggregating $63,982, and additional paid-in capital aggregating $312,787.
The Company's share redemption plan permits "eligible shareholders" or
their estates to have their shares redeemed upon reaching age 65 or upon
death. Shares are redeemed at the net asset value per share as of the end
of the Company's fiscal quarter in which the request for redemption is
received. At October 31, 2007 and 2006, $1,067,546 (90,843.7219 shares),
$990,220 (84,390.2532 shares), respectively, had been redeemed under this
plan.
The net asset value per share is calculated by dividing the value of all
assets less total liabilities by the number of common shares outstanding
at the end of the period.
The net asset value per share and the shares outstanding were as follows:
October 31,
2007 2006
--------- ---------
Net asset value:
- at market value of the
underlying investments $ 12.00 $ 12.17
- at amortized cost $ 11.76 $ 11.86
- --------------------------------------------------------------------------------
See accountant's report. - 11 -
TRIDAN CORP.
NOTES TO FINANCIAL STATEMENTS
SIX MONTHS ENDED OCTOBER 31, 2007 AND 2006
- --------------------------------------------------------------------------------
4. Common Stock, Net Asset Values and Share Redemption Plan (continued)
Shares outstanding at:
October 31, 2007 3,108,256.2781
October 31, 2006 3,114,709.7468
5. Distributions
During the six months ended October 31, 2007 and 2006, distributions of
$715,722 ($.23 per share) and $778,802 ($.25 per share), respectively,
were declared and paid to shareholders, which, except for capital gains of
$-.- in 2007 and $158,796 in 2006, were exempt from Federal income taxes.
Distributions for the year ended April 30, 2007 were $1,432,789 ($.46 per
share) and were exempt from Federal income taxes except for $220,756 of
capital gains.
The tax character of distributions paid during the six months ended
October 31, 2007 and 2006 and the year ended April 30, 2007 were as
follows:
Six Months Ended Year Ended
October 31, April 30,
2007 2006 2007
----------- ----------- -----------
Distributions paid from
Tax exempt investment income, net $ 715,722 $ 620,006 $ 1,212,033
Capital gains -.- 158,796 220,756
----------- ----------- -----------
$ 715,722 $ 778,802 $ 1,432,789
=========== =========== ===========
As of October 31, 2007 and 2006 and April 30, 2007, the components of
distributable earnings on a tax basis were as follows:
October 31, October 31, April 30,
2007 2006 2007
----------- ----------- -----------
Overdistributed tax-exempt
investment income, net $ (128,074) $ (21,302) $ (16,260)
Undistributed capital gains (48,244) 61,958 -.-
Unrealized appreciation of
investments, net 665,841 971,083 687,500
----------- ----------- -----------
$ 489,523 $ 1,011,739 $ 671,240
=========== =========== ===========
The Company has $48,244 of capital loss carry forwards as of October 31,
2007. The Company had no capital reclassification related to permanent
book/tax differences for the six months ending October 31, 2007 and 2006.
- --------------------------------------------------------------------------------
See accountant's report. - 12 -
TRIDAN CORP.
NOTES TO FINANCIAL STATEMENTS
SIX MONTHS ENDED OCTOBER 31, 2007 AND 2006
- --------------------------------------------------------------------------------
6. Financial Highlights
Selected per share data and ratios
SIX MONTHS ENDED OCTOBER 31,
2007 2006 2005 2004 2003
---------- ---------- ---------- ---------- ----------
Per share data:
(For a share of capital stock outstanding
throughout the period):
Net asset value, beginning of year $ 12.06 $ 12.04 $ 12.51 $ 12.61 $ 12.94
---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income 0.19 0.20 0.22 0.22 0.24
Net realized and unrealized
gain (loss) on investments (0.02) 0.18 (0.27) 0.18 (0.08)
---------- ---------- ---------- ---------- ----------
Total from investment operations 0.17 0.38 (0.05) 0.40 0.16
---------- ---------- ---------- ---------- ----------
Less distributions:
Dividends (from net investment
income) (0.23) (0.20) (0.23) (0.23) (0.22)
Capital gains (0.00) (0.05) (0.02) (0.02) (0.03)
---------- ---------- ---------- ---------- ----------
Total distributions (0.23) (0.25) (0.25) (0.25) (0.25)
---------- ---------- ---------- ---------- ----------
Net asset value - end of period $ 12.00 $ 12.17 $ 12.21 $ 12.76 $ 12.85
========== ========== ========== ========== ==========
Per share market value - end of period $ 12.00 $ 12.17 $ 12.21 $ 12.76 $ 12.85
========== ========== ========== ========== ==========
Total investment return -1.36% 1.08% -2.40% 1.18% -0.70%
Ratios/Supplemental Data:
Net assets, end of period (in thousands) $ 37,302 $ 37,902 $ 38,064 $ 39,805 $ 40,153
Ratio of expenses to average net assets
(annualized) 1.08% 0.97% 0.94% 0.96% 0.74%
Ratio of net investment income - to
average net assets (annualized) 3.21% 3.34% 3.54% 3.46% 3.72%
Portfolio turnover rate 1.98% 12.6% 5.2% 4.0% 7.0%
Average (simple) number of share
outstanding (in thousands) 3,108 3,115 3,117 3,119 3,125
- --------------------------------------------------------------------------------
See accountant's report. - 13 -
Item 2. Code of Ethics
Not required in this report.
Item 3. Audit Committee Financial Expert
Not required in this report.
Item 4. Principal Accountant Fees and Services
Not required in this report.
Item 5. Audit Committee of Listed Registrants.
Not required in this report.
Item 6. Schedule of Investments.
A schedule of registrant's investments in securities of unaffiliated
issuers as of October, 31, 2007 is included as part of the financial
statement filed under Item 1 of this Form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable, because the registrant invests exclusively in
non-voting securities.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
No change in the portfolio managers identified in the registrant's
most recent annual report on Form N-CSR.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
Not applicable, because the registrant has no equity securities that
are registered pursuant to Section 12 of the Securities Exchange Act
of 1934
Item 10. Submission of Matters to a Vote of Security Holders.
The registrant does not have in place procedures by which
shareholders may recommend nominees to the registrant's board of
directors.
Item 11. Controls and Procedures
(a) The registrant's principal executive and principal financial
officers have evaluated the registrant's disclosure controls
and procedures (as defined in Rule 30a-3(c)) as of the end of
the period covered by this report. Based on that evaluation,
said officers have concluded that the registrant's disclosure
controls and procedures are effective to ensure that
information required to be disclosed in this report is
recorded, processed, summarized and reported within the
required time periods.
(b) There was no change in the registrant's internal control over
financial reporting that occurred during its last fiscal
half-year that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control
over financial reporting.
Item 12. Exhibits
(a) The following exhibits are filed herewith:
(2) The separate certifications for the registrant's
principal executive and principal financial officers.
SIGNATURES
Pursuant to the requirements of the Investment Company Act of 1940, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
(Registrant) Tridan Corp.
--------------------------------------------------------------------
By (Signature and Title) /S/ Peter Goodman
--------------------------------------------------------
Peter Goodman, President and Chief Executive Officer
Date: December 27, 2007
-----------------
Pursuant to the requirements of the Investment Company Act of 1940, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.
By (Signature and Title) /S/ Peter Goodman
--------------------------------------------------------
Peter Goodman, President and Chief Executive Officer
Date: December 27, 2007
-----------------
By (Signature and Title) /S/ Warren F. Pelton
--------------------------------------------------------
Warren F. Pelton, Treasurer and Chief Financial Officer
Date: December 27, 2007
-----------------