SUBMITTED BY UROOJ HASHMI & SANIA ASAD

SUBMITTED TO MS. JAVERIA ASIM

SUBJECT CORPORATE FINANCIAL REPORTING

DATE OF SUBMISSION DECEMBER 5,2019

The Background

Inspired by the Arabic word “Tahur” which literally translated means “Purity”.
At-Tahur Limited has since its inception in 2007 strived to provide its consumers
with dairy products the way nature intended them to be. This is why At-
Tahur’s premá milk brand launched in 2008 has in a short span of time become a
household name in Pakistan for its 100% natural purity & freshness. Ensuring
highest production, processing and packaging standards, premá milk is the only
milk in Pakistan that is free of all kinds of additives and artificial growth hormones
and completely traceable from Grass to Glass.

The Vision

Behind At-Tahur’s commitment to purity and the continuous market growth

of premá milk & its other dairy products is the inspiring and passionate vision of
its CEO, Rasikh Elahi. Inducing the coming generations to healthy milk as this
vision’s guiding principle, At-Tahur’s team of highly skilled foreign and local
dairy professionals have successfully turned it into a reality.
Production & Processing

In order to set highest standards in purity and nourishment At-Tahur imported

world renowned / thoroughbred Australian and Dutch cows. Produced at the state
of the art dairy facilities and untouched by human hand premá milk is pasteurized,
homogenized and packed using a fully integrated and an internationally
compliant Cow to Consumer process.
Products Range

Premá Milk is the proud produce of At-Tahur Limited. 100 % Fresh, Pure &
nourishing premá milk is the first choice of all purity & health conscious Pakistani
households. Produced at a state of the art dairy facility and untouched by human
hand, every drop of premá milk ensures highest production, processing &
packaging standards.
Prema Heart Right
Premá Heart Right is 100% pure, fresh, nourishing & unadulterated thoroughbred
Australian & Dutch cows’ milk Minus-The-Creamy-Fat.

Premá Natural Yogurt

Yogurt is not just a delicious dessert, it has great health benefits. It is an excellent
source of protein, calcium, riboflavin and vitamin B12. Yogurt has even more
calcium and protein than milk. At-Tahur, with a motto to bring purity back to your
lives, now introduces premá Natural Yogurt.
Premá Sweet Yogurt

Premá sweet yogurt with the pure traditional taste of sweet yogurt is packed in
modern convenience to enrich your meals and give your family the protection of
natural dairy goodness.
Premá Zeera Raita

Premá Zeera Raita with its distinctive cumin flavor is made from 100% natural &
pure premá yogurt. Premá Zeera Raita spices up your food and engages your taste
buds to provide you with an unforgettable culinary pleasure at all times. Carefully
selected cumin seeds used in premá Zeera Raita help improve your digestion and
appetite.
Process
What is pasteurized fresh milk?

Named after the famous French scientist Louis Pasteur, Pasteurization is the
internationally accepted method of heat treating pure milk to remove potentially
harmful bacteria and viruses. 95 % of all milk consumed in Europe, North
America, and Middle East & Australasia is pasteurized fresh cow's milk, just
like premá.

What makes premá the best pasteurized milk?

Premá milk is pure and unadulterated Australian & Dutch Cows' milk. Produced
exclusively at our own modern farms. Premá milk is processed in state of the art
dairy facilities and packed in hygienic, high quality and convenient gable top
cartons. At every stage, from milking to packing, meticulous care is taken to
ensure premá milk reaches you in the purest form.

How is premá milk produced?

Premá milk is produced by our imported, pure breed Australian & Dutch Holstein
cattle. Kept in a healthy and comfortable environment, our free range cows are fed
nutritious diet. Our Highly experienced foreign and local experts take great care of
every cow, so that every drop of milk produced is wholesome and healthy.

How is premá milk processed?

Premá milk is pasteurized, homogenized and packed in our purpose built plant.
Using equipment from New Zealand, the fully integrated cow-to-consumer process
ensures the highest international standards of hygiene, quality, purity and freshness
which are completely traceable from Grass to Glass.
What are the health benefits of premá milk?

premá milk is 100 % pure cow's milk. Nothing added, nothing taken away
guaranteed. Therefore, you get all the nutrition and health benefits of premium
fresh milk. One delicious glass of premá milk gives you the Recommended Daily
Amounts (RDA) of Calcium (45%), Vitamin D & Riboflavin (35%), B12 &
Phosphorus (25%), Vitamin A and Potassium & Niacin (15%).
Financial Statements
Interview Questionnaire
These questioned were asked to record information regarding inventory costing.
The information was provided by middle manager of the entity. The interview was
taken by the medium of a phone call.

1. Which inventory cash flow method do you use for operations and financial
activities?

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2. Do you record your inventory periodically or perpetually?

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3. Why do you use this system for recording inventory?

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4. Do departments compare quantities received against receiving reports?

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5. Are inventory performance matrices monitored on a regular basis?

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6. How is inventory classified? Do you utilize bar coding or scanning

equipment?

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7. How are employees trained to conduct this inventory management system?

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8. Are you hoping for any changes in this system or you completely satisfied
with this system’s efficiency?

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 Inventory Recording Format.

Accou Account Opening Purchase July to Sept Consumption Closing

nt Head
Code

Qty Rate Amount Qty Rate Amou Qty Rate Amo Qty Rate Amou
nt unt nt

06-12- Type 1 Packaging

01-
0001
#RE #RE #RE
- - - F! - #REF! F! - F! - - -

#RE #RE #RE

- - - F! - #REF! F! - F! - - -

#RE #RE #RE

- - - F! - #REF! F! - F! - - -

#RE #RE #RE

- - - F! - #REF! F! - F! - - -

#RE #RE #RE

- - - F! - #REF! F! - F! - - -

#RE #RE #RE

- - - F! - #REF! F! - F! - - -
Average Cost Method

Average cost method is the application of the average cost of the group of asset to
each asset within that group

Advantages of Average Cost Method

 To track the inventory expense, average cost is the simplest method. As you
retrieve units, you don’t have to track their original cost before pricing them.
You can simply mark up the average price of the units. This makes picking
and pricing inventory easy
 Whether you use software or manual counting method, it cost you money to
track inventory as you have to pay employee to keep track of inventory
expense
 It is useful for management in analyzing of operation result

Disadvantages of Average Cost Method

 The problem with this method if the prices of inventory vary widely your
pricing may not recover the cost of the more expensive units. It is possible
that you are taking loss with your sale price
 It assumes that all units are identical however this may not be the case. This
maybe a problem when the manufacture replaces a product with a new
version but gives the same name as the old one
 If there is an upward and downward trend in the product cost, average cost
doesn’t provide a clearer indication of the most recent cost in the CGS.
Conclusion

Based on the above prescribed information. Company is currently using average

cost method. However the company can convert the system to FIFO for more
efficient recording.

Recommendations

The company should use FIFO method for more accurate recording of the
inventory. As the product has least shelf life. It would be better if they record the
inventory on FIFO basis.