TRIDAN CORP.

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P.O. Box 634, New City, N.Y. 10956

(212) 239-0515

SEMI-ANNUAL REPORT

 

December 27, 2013

Dear Shareholder:

This semi-annual report of Tridan Corp. covers the six-month period from May 1, 2013 to October 31, 2013.  As part of this report, we enclose the unaudited financial report for that six-month period and for the corresponding period in 2012.

A schedule of the company’s portfolio holdings at October 31, 2013, 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, 2013 was $12.50, compared with $12.89 at October 31, 2012.  Net investment income per share was $.13 for the six-month period ended October 31, 2013, compared with $.14 for the six-month period ended October 31, 2012.

At the company’s last annual meeting on July 16, 2013, the reappointment of WeiserMazars LLP as the company’s auditors for the fiscal year ending April 30, 2014 was ratified by the shareholders as follows:

 

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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.

During the six-month period ended October 31, 2013, 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 June 11, 2013, 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, 2013 to June 30, 2014.  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.

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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 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:

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 Barclays 1-17 Year NY Muni Bond Index.  Based on their review, the directors all agreed that Tridan’s relative investment performance has been satisfactory.

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 and quality of the services provided by Morgan to the company have been and continue to be appropriate and beneficial.

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Under its Investment Advisory Agreement with Morgan, Tridan pays an annual fee, computed and payable quarterly, equal to 0.28% (28 basis points) 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, the annual charge made to Tridan for maintaining custody of the company’s securities, and for custodial-related services rendered by Morgan and its affiliates, is 0.02% (2 basis points) of the assets held in the custody account.  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.

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	Page(s)
Accountant’s Compilation Report	1
Financial Statements
Statements of Assets and Liabilities October 31, 2013 and 2012	2
Schedules of Investments in Municipal Obligations October 31, 2013 and 2012	3-9
Statements of Operations Six Months Ended October 31, 2013 and 2012	10
Statements of Changes in Net Assets Six Months Ended October 31, 2013 and Year Ended April 30, 2013	11
Notes to Financial Statements	12

		2013				2012
Assets
Investments in municipal obligations, at fair value
(original cost - $37,533,263 and $37,149,402, respectively)
(amortized cost - $36,018,519 and $35,664,843, respectively)		$	38,229,588			$	39,106,537
Cash and cash equivalents			81,982				388,702
Prepaid expenses and other current assets			6,294				16,385
Accrued interest receivable			486,903				517,032
Total assets		$	38,804,767			$	40,028,656
Liabilities
Accrued liabilities
Accrued investment advisory fees		$	41,405			$	66,124
Accrued fees - affiliate			19,628				20,242
Accrued other			11,750				24,380
Dividend payable			35,973				-
Common stock redemption payable			11,218				2,632
Total liabilities			119,974				113,378
Net assets		$	38,684,793			$	39,915,278
Analysis of net assets
Common stock, at $.02 par value, 6,000,000 shares authorized		$	63,982			$	63,982
Paid-in capital			37,816,314				37,816,314
Treasury stock			(1,241,209	)			(1,203,026	)
Distributable earnings:
Over distributed net investment income			(192,413	)			(191,161	)
Undistributed capital (losses)			27,050				(12,526	)
Unrealized appreciation of investments, net			2,211,069				3,441,695
Net assets [equivalent to $ 12.50 and $12.89 per share, respectively, based on 3,094,423.8787 shares and 3,097,434.9100 shares of common stock outstanding, respectively]		$	38,684,793			$	39,915,278

		2013												2012
		Principal				Amortized				Fair				Principal				Amortized				Fair
		Amount				Cost				Value				Amount				Cost				Value
Insured
Ardsley New York Union Free
School District Unlimited Tax
4.00% due June 15, 2016		$	460,000			$	465,578			$	496,901			$	460,000			$	467,762			$	509,096
Bethlehem NY Central School District
Ref Unlimited Tax
5.0% due November 1, 2015			500,000				510,816				544,750				500,000				515,647				564,725
Village of Briarcliff Manor New York
Pub Impt Unlimited Tax
5.0% due September 1, 2017			215,000				224,641				248,813				215,000				227,392				258,065
Village of Briarcliff Manor New York
Pub Impt Unlimited Tax
5.0% due September 1, 2015			310,000				317,476				336,080				310,000				323,730				348,508
Cattaraugus County NY Public
Impt Ref Unlimited Tax
(Par Call June 1, 2013 @100)
5.0% due June 1, 2015			275,000				275,637				276,089				275,000				278,900				282,213
City of New York NY Public Impts
Unlimited Tax
(Par Call August 1, 2014 @100)
5.0% due August 1, 2017			-				-				-				500,000				511,414				539,695
City of New York Transitional
Fin Bldg Aid Rev Fiscal 2007
5.00% due July 15, 2016			750,000				770,587				838,809				750,000				778,164				868,658
N.Y.S. Dormitory Authority Revs
Non St Supported Debt Sch Dist Fing Prog
(Par Call October 1, 2017 @100)
5.0% due October 1, 2018			430,000				444,644				488,003				430,000				448,367				494,681
N.Y.S. Dormitory Authority Revs
Non St Supported Debt Sch Dist Fing Prog
(Par Call October 1, 2017 @100)
5.0% due October 1, 2019			585,000				602,957				653,890				585,000				607,521				672,177
N.Y.S. Dormitory Authority Revs
Non St Supported Debt Insd Sien College
(Par Call July 1, 2016 @100)
5.0% due July 1, 2020			1,000,000				1,025,800				1,107,180				1,000,000				1,029,650				1,099,210

		2013												2012
		Principal				Amortized				Fair				Principal				Amortized				Fair
		Amount				Cost				Value				Amount				Cost				Value
Insured (continued))
N.Y.S. Dormitory Authority Revs
Non St Supported Debt St Johns Univ - Insd
5.25% due July 1, 2021		$	1,000,000			$	1,064,180			$	1,175,150			$	1,000,000			$	1,072,491			$	1,239,920
N.Y.S. Dormitory Authority Revs
City University Sys Ref Cons 5th Gen
5.5% due July 1, 2019			1,000,000				1,052,065				1,206,580				1,000,000				1,061,382				1,257,570
N.Y.S. Dormitory Authority Revs
Supported Debt Mental Health Svcs Facs
Impt (Par Call February 15, 2015 @100)
5.0% due February 15, 2021			1,035,000				1,043,429				1,091,325				1,035,000				1,048,519				1,138,955
N.Y.S. Dormitory Authority Revs
5.5% due May 15, 2018			1,155,000				1,217,756				1,371,736				1,155,000				1,231,559				1,424,958
N.Y.S. Local Govt Assistance Corp Ref:
5.5% due April 1, 2017			240,000				249,168				268,006				240,000				251,673				280,310
5.5% due April 1, 2017			700,000				755,865				781,683				700,000				772,132				817,572
Niagara Falls Bridge Commission
NY Toll Rev Highway Impts
5.25% due October 1, 2015			435,000				440,965				449,699				780,000				794,115				817,502
Pleasantville New York Public Impt
Unlimited Tax
5.0% due January 1, 2016			440,000				449,808				483,318				440,000				454,109				500,636
Commonwealth of Puerto Rico
Electric Power Auth Rev
5.5% due July 1, 2017			-				-				-				700,000				737,644				790,965
Commonwealth of Puerto Rico
Highway Transportation Auth Rev Ref
6.25% due July 1, 2016			185,000				194,608				191,177				285,000				304,872				323,511
Puerto Rico Commonwealth Highway
and Transportation Auth Transn Rev
5.5% due July 1, 2015			-				-				-				500,000				518,827				549,735
Sachem Central School District
NY Holbrook Ref Unlimited Tax
5.25% due October 15, 2019			500,000				527,971				604,675				500,000				532,631				630,600

		2013												2012
		Principal				Amortized				Fair				Principal				Amortized				Fair
		Amount				Cost				Value				Amount				Cost				Value
Insured (continued))
Sales Tax Receivable Corp
NY Public Impt.
(Par Call October 15, 2014 @100)
5.0% due October 15, 2017		$	275,000			$	282,264			$	287,315			$	275,000			$	287,280			$	299,813
Triborough Bridge & Tunnel Authority NY
General Purpose Revs
5.5% due November 15, 2019			1,000,000				1,067,287				1,222,130				1,000,000				1,078,379				1,263,400
Sales Tax Receivable Corp
NY Public Impt.
(Par Call October 15, 2014 @100)
5.0% due October 15, 2021			200,000				187,183				208,798				200,000				203,174				217,470
State of NY Dormitory Auth
Personal Inc Tax Rev Ref Educ.
5.50 % due March 15, 2025			500,000				552,832				615,000				500,000				557,461				662,905
			13,190,000				13,723,517				14,947,107				15,335,000				16,094,795				17,852,850
Revenue Backed
City of New York NY Municipal Water
Fin Auth Wtr. & Sewer Rev Fiscal 2009
(Par Call June 15, 2018 @100)
5.625% due June 15, 2024			1,000,000				993,056				1,168,700				1,000,000				991,727				1,234,700
City of New York Transitional Finance
Auth Rev Sub Future Tax Secured
(Par Call November 1, 2019 @100):
5.00% due November 1, 2020			500,000				539,672				591,640				500,000				545,798				624,530
5.00% due November 1, 2021			1,000,000				1,079,293				1,163,580				1,000,000				1,092,233				1,232,480
NY City Transitional Financial Authority
Rev Future Tax
(Par Call November 1, 2022 @100)
5.00% due November 1, 2026			550,000				620,423				622,512				-				-				-
N.Y.S. Urban Development
Corp Rev Ref Svc Contract
5.00% due January 1, 2017			225,000				238,650				253,886				225,000				242,945				263,445
Nassau County
Gen Impt Unltd Tax
(Par Call October 1, 2020 @100)
4.00% due October 1, 2022			550,000				576,918				577,093				550,000				580,970				599,110

		2013												2012
		Principal				Amortized				Fair				Principal				Amortized				Fair
		Amount				Cost				Value				Amount				Cost				Value
Revenue Backed (continued)
New York Environmental Facilities Corp
Pollution Control Rev St Water NYC 02
(Par Call June 15, 2016 @100)
5.00% due June 15, 2018		$	1,000,000			$	1,017,371			$	1,111,130			$	1,000,000			$	1,023,910			$	1,151,010
Pawling New York Central School
District Ref Unlimited Tax
4.00% due November 15, 2015			330,000				346,898				351,721				330,000				355,143				360,624
Cold Spring Harbor New York Central School
District Ref Unlimited Tax
5.00% due February 1, 2016			100,000				105,908				110,110				100,000				109,440				114,273
State of NY Local Gov't
(Par Call April 1, 2018 @100)
5.0% due April 1, 2019			200,000				211,317				231,922				200,000				214,386				241,552
Brookhaven New York
Unlimited Tax
5.00% due November 15, 2019			450,000				510,507				539,928				450,000				520,486				562,766
Suffolk County New York Waterworks Rev
(Par Call June 1, 2013 @100)
4.75% due June 1, 2021			-				-				-				770,000				767,560				789,496
State of NY Dormitory Auth
State Pers. Inc. Tax
(Par Call March 15, 2018 @100)
5.00 % due March 15, 2022			750,000				780,490				851,573				750,000				788,330				897,908
State of NY Dormitory Auth
State Pers. Inc. Tax
5.5% due March 15, 2026			200,000				262,209				246,684				200,000				267,220				269,028
State of NY Dormitory Auth
Lease Rev
(Par Call August 15, 2020 @100)
5.00 % due August 15, 2023			420,000				425,932				478,468				420,000				426,909				501,761
New York,  New York
Unlimited Tax
(Par Call August 1, 2020 @100)
5.00 % due August 1, 2023			510,000				559,809				583,726				510,000				567,158				612,398

		2013												2012
		Principal				Amortized				Fair				Principal				Amortized				Fair
		Amount				Cost				Value				Amount				Cost				Value
Revenue Backed (continued)
New York,  New York
Unlimited Tax
(Par Call August 1, 2019 @100)
5.00 % due August 1, 2026		$	350,000			$	354,139			$	392,802			$	350,000			$	354,845			$	424,193
City of New York Municipal
Fin Auth Wtr & Swr Rev
(Par Call June 15, 2019 @100)
5.00 % due June 15, 2027			500,000				517,037				561,620				500,000				520,056				602,475
Port Authority of NY and NJ
(Par Call October 1, 2016 @100)
5.00 % due October 1, 2027			300,000				303,509				323,376				300,000				304,758				342,744
Port Authority of NY and NJ
(Par Call January 15, 2016 @100)
5.00 % due July 15, 2030			200,000				199,884				212,438				200,000				199,832				222,548
Port Authority of NY and NJ
5.375 % due March 1, 2028			150,000				154,491				175,344				150,000				154,803				188,922
NYS Dormitory
(Par Call July 1, 2018 @100)
5.00 % due July 1, 2029			300,000				300,000				326,607				300,000				300,000				338,037
Starpoint NY Central School District
Ref Unlimited Tax
5.0% due June 15, 2018			850,000				976,867				990,310				850,000				1,002,924				1,017,986
Greece NY Central School District
Unlimited Tax
(Par Call December 15, 2022 @100)
5.0% due December 15, 2023			500,000				590,039				580,365				500,000				597,504				613,325
N.Y.S. Thruway Authority
St Pers Income Tax Rev Transn
5.25% due March 15, 2019			750,000				784,786				897,540				750,000				791,241				937,883
			11,685,000				12,449,205				13,343,075				11,905,000				12,720,178				14,143,194
Pre-refunded
Long Island Power Auth NY Elec Sys Rev
5.50% due December 1, 2013			-				-				-				1,005,000				1,048,636				1,062,275

		2013												2012
		Principal				Amortized				Fair				Principal				Amortized				Fair
		Amount				Cost				Value				Amount				Cost				Value
Pre-refunded (continued)
Triborough Bridge & Tunnel Authority NY
General Purpose Revs
(Escrowed to Maturity)
5.5% due January 1, 2017		$	720,000			$	720,489			$	779,486			$	1,000,000			$	1,009,326			$	1,094,250
Starpoint NY Central School District
Ref Unlimited Tax
5.0% due June 15, 2020			250,000				295,384				293,570				250,000				302,209				305,505
			970,000				1,015,873				1,073,056				2,255,000				2,360,171				2,462,030
General Obligations
Wantagh New York UN Free School
5.00% due September 1, 2021			550,000				655,122				661,111				-				-				-
Central Islip New York Union Free School
School District Ref Unlimited Tax
5.00% due July 15, 2022			750,000				932,942				896,775				-				-				-
Hilton New York
Central School District Unlimited Tax
4.0% due June 15, 2019			500,000				571,210				561,545				-				-				-
Rockville Center NY Limited Tax
4.0% due June 15, 2022			200,000				230,694				219,996				-				-				-
Brentwood New York UN Free School
5.00% due January 15, 2023			430,000				492,651				518,107				-				-				-
Connetquot New York
Central School District Unlimited Tax
5.0% due January 15, 2024			400,000				455,218				479,024				-				-				-
Syosset New York
Central School District Unlimited Tax
5.0% due December 15, 2022			735,000				834,218				843,050				-				-				-
Rhinebeck New York
Central School District Unlimited Tax
(Par Call June 15, 2023 @100)
4.0% due June 15, 2025			535,000				597,304				564,297				-				-				-
Queensbury New York Union Free School
4.00% due December 15, 2018			225,000				246,363				255,024				225,000				250,517				260,719

		2013												2012
		Principal				Amortized				Fair				Principal				Amortized				Fair
		Amount				Cost				Value				Amount				Cost				Value
General Obligations (continued)
Riverhead NY Limited Tax
4.0% due June 1, 2021		$	1,005,000			$	1,121,320			$	1,130,916			$	1,005,000			$	1,136,600			$	1,178,383
Bethlehem, NY Central School District
Unlimited Tax
4.00% due January 15, 2021			500,000				557,483				555,145				500,000				565,428				571,875
Plainview Old Bethpage New York Central
School District Ref Unlimited Tax
5.00% due December 15, 2020			250,000				276,388				302,480				250,000				280,079				321,630
			6,080,000				6,970,913				6,987,470				1,980,000				2,232,624				2,332,607
Short-term
Clarkstown Central School District
NY Unlimited Tax
(Par Call April 15, 2014 @100)
5.25% due April 15, 2015			400,000				404,142				409,305				400,000				408,206				428,926
Cattaraugus County NY Public
Impt Ref Unlimited Tax
(Par Call June 1, 2013 @100)
5.0% due June 1, 2014			275,000				274,967				276,117				275,000				277,769				282,461
Ardsley New York Union Free
School District Unlimited Tax
5.00% due June 15, 2014			415,000				418,630				426,300				415,000				425,269				442,635
Unadilla Valley New York Central School
District Ref Unlimited Tax
4.00% due June 15, 2014			500,000				506,698				511,145				500,000				517,439				526,925
Erie County New York
Indl. Dev. Agency
5.0% due May 1, 2014			250,000				254,574				256,013				250,000				263,670				266,480
N.Y.S. Dormitory Authority Rev
Cons City Univ Genl Sys 2nd Ser
5.75% due July 1, 2013			-				-				-				60,000				60,750				62,141
Massapequa New York Union Free
School District Unlimited Tax
4.00% due June 15, 2013			-				-				-				300,000				303,972				306,288
			1,840,000				1,859,011				1,878,880				2,200,000				2,257,075				2,315,856
		$	33,765,000			$	36,018,519			$	38,229,588			$	33,675,000			$	35,664,843			$	39,106,537

		2013				2012
Investment income
Interest		$	839,352			$	853,288
Amortization of bond premium and discount - net			(221,785	)			(210,440	)
Total investment income			617,567				642,848
Expenses
Investment advisory fees			61,809				59,875
Professional fees			70,425				70,875
Director's fees			38,500				38,500
Administrative and accounting expenses			36,000				36,000
Insurance and other expenses			6,865				8,100
Total expenses			213,599				213,350
Net investment income			403,968				429,498
Realized and unrealized gain (loss) on investments
Net realized gain on investments			27,052				1,073
Net unrealized (depreciation) appreciation on investments			(1,019,321	)			155,416
Net realized and unrealized gain on investments			(992,269	)			156,489
Net increase (decrease) in net assets resulting from operations		$	(588,301	)		$	585,987