Ansari Sugar Mills Limited

Introduction: Ansari sugar mills limited was in corporate d in Pakistan on July 09, 1989 as a public limited company and its shares are quoted in Karachi and Lahore Stock Exchange. The principal business of the company is manufacture and sale of white sugar. The registered office of the company is situated at 1st floor, Block # 2, Hockey Club of Pakistan Stadium, Liaquat Barracks, Karachi and its factory is located at Deh Jagsiyani, Taluka Tando Ghulam Hyder, District Tando Muhammad Khan, Sindh. These financial statements have been prepared in accordance with approves accounting standards as applicable in Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by International Accounting Standard Board as are notified under Companies ordinance, 1984. Basis of Measurement: These financial statements have been prepared under historical cost convention except for the land, factory buildings and plant and machinery started at revalued amounts less accumulated depreciation and impairments losses. Taxation: Current: Provision for current taxation is based on the taxable income for the year determined in accordance with the prevailing law for taxation of income. Deferred: Deferred tax is accounted for using the balance sheet liability method in respect of all temporary differences arising from differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax based used in the computation of taxable profit. Depreciation: Depreciation is charged to income on reducing balance method so as to write off the written down value of assets over their estimated useful lives. Depreciation on additions is charges from the quarter is which the assets become available for use while on disposals depreciation is charged upto the quarter of deletion. Stores, spares and loose tools: These are valued at lower of cost and net relizably valu except for items in tansit, which are valued at cost comprising invoice value and related expenses incurred threon up to the balance sheet date, cost is calculated on FIFO basis. Obsolete and used stores, spares and loose tools are recorded at nil value.

Revenue Recognition: Revenue with the sales of goods is measured at the fair value of the consideration received or receivable. Revenue is recognized when the significant risks and rewards of ownership have been transferred to buyers.