H.

SADAR ALI AKHTAR ALI (PRIVATE) LIMITED

STATEMENT OF FINANCIAL POSITION
AS AT JUNE 30, 2019

Note 2019 2018

……………...Rupees…………………
ASSETS
NON CURRENT ASSETS
Property, plant and equipment 4 843,486,258 828,122,668
Long term deposits 5 13,603,501 13,603,501
TOTAL NON CURRENT ASSETS 857,089,759 841,726,169
CURRENT ASSETS
Stores, spare parts and loose tools 6 24,520,597 23,397,597
Stock-in-trade 7 1,579,369,247 1,622,891,182
Trade debts 8 209,660,355 315,774,658
Loans, advances and deposits 9 122,608,121 85,122,445
Due from Government 10 182,862,623 211,858,965
Other receivable 11 2,908,877 2,876,625
Cash and bank balances 12 44,504,488 16,784,005
TOTAL CURRENT ASSETS 2,166,434,308 2,278,705,477
TOTAL ASSETS 3,023,524,066 3,120,431,646

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES
Authorised share capital 13 150,000,000 150,000,000

Issued, subscribed and paid-up capital 14 9,880,000 9,880,000

Surplus on revaluation of property, plant and equipment 15 420,499,565 456,507,604
Revenue reserve- unappropriated profit 1,225,334,927 1,176,901,823
Total Equity 1,655,714,492 1,643,289,427
NON CURRENT LIABILITIES
Employee benefit obligation 16 17,849,614 10,505,099

TOTAL NON CURRENT LIABILITIES 17,849,614 10,505,099

CURRENT LIABILITIES
Trade and other payables 17 792,480,793 931,778,659
Short term borrowings 18 557,479,167 534,858,460
TOTAL CURRENT LIABILITIES 1,349,959,960 1,466,637,119
TOTAL EQUITY AND LIABILITIES 3,023,524,066 3,120,431,646

CONTINGENCIES AND COMMITMENTS 19

The annexed notes from 1 to 38, form an integral part of these financial statements.

__________________ _____________
Mian Naeem Akhtar Mian Ahsan Ali
Chief Executive Officer Director
H. SADAR ALI AKHTAR ALI (PRIVATE) LIMITED
STATEMENT OF PROFIT AND LOSS
FOR THE YEAR ENDED JUNE 30, 2019

Note 2019 2018

………………..Rupees………………..

Turnover 20 3,159,976,358 2,479,501,638

Cost of sales 21 (2,827,087,691) (2,224,871,189)
GROSS PROFIT 332,888,667 254,630,448

Selling and distribution cost 22 (209,234,942) (166,083,306)

Administrative expenses 23 (82,425,017) (58,377,090)
Other expense 24 (2,317,096) (1,684,143)
Finance cost 25 (32,304,716) (22,630,707)
Other income 26 37,417,933 26,143,521
(288,863,839)
1 (222,631,724)
PROFIT BEFORE TAXATION 44,024,828 31,998,724
Taxation 27 (31,599,764) (22,626,097)
PROFIT FOR THE YEAR 12,425,064 9,372,627

The annexed notes from 1 to 38, form an integral part of these financial statements.

__________________ _______________
Mian Naeem Akhtar Mian Ahsan Ali
Chief Executive Officer Director
H. SADAR ALI AKHTAR ALI (PRIVATE) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED JUNE 30, 2019

Note 2019 2018

…………….Rupees…………….

PROFIT FOR THE YEAR 12,425,064 9,372,627

OTHER COMPREHENSIVE INCOME FOR THE YEAR

Items that will not be reclassified to profit or loss - -
Items that may be subsequently reclassified to profit or loss - -

TOTAL COMPREHENSIVE INCOME FOR THE YEAR 12,425,064 9,372,627

The annexed notes from 1 to 38, form an integral part of these financial statements.

___________________ _______________
Mian Naeem Akhtar Mian Ahsan Ali
Chief Executive Officer Director
H. SADAR ALI AKHTAR ALI (PRIVATE) LIMITED
STATEMENT CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2019

Note 2019 2018

……………...Rupees……………….
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation 44,024,828 31,998,724
Adjustment for:
Depreciation 78,531,670 78,825,158
(Gain) / Loss on sale of fixed assets (47,220) 2,019,212
Provision for gratuity 10,400,950 1,010,650
Finance cost 32,304,716 22,630,707
121,190,116 104,485,726
165,214,945 136,484,450
Changes in working capital:
(Increase) / decrease in current assets
Stock in trade 42,398,935 (21,862,659)
Trade debts 106,114,303 (175,219,355)
Loans, advances and deposits (3,639,493) (58,721,464)
144,873,745 (255,803,477)
Increase / (decrease) in current liabilities
Trade and other payables (139,474,986) 39,348,759
Cash generated from / (used in) from operations 170,613,704 (79,970,268)

Finance cost paid (32,127,596) (22,159,497)

Income tax paid (36,481,857) (28,593,919)
Gratuity paid (3,056,435) (2,320,551)
Net cash generated from / (used in) from operating activities 98,947,816 (133,044,234)

CASH FLOWS FROM INVESTING ACTIVITIES

Fixed capital expenditures (105,088,040) (24,660,537)
Proceeds form sale of property, plant and equipment 11,240,000 6,850,000
Net cash used in investing activities (93,848,040) (17,810,537)

CASH FLOWS FROM FINANCING ACTIVITIES

Short term borrowings - net 52,516,715 97,522,000
Net cash generated from financing activities 52,516,715 97,522,000

Net increase in cash and cash equivalents 57,616,491 (53,332,772)

Cash and cash equivalents at the beginning of the year (145,137,584) (91,804,812)
Cash and cash equivalents at the end of the year 32 (87,521,093) (145,137,584)

The annexed notes from 1 to 38, form an integral part of these financial statements.

________________
Mian Naeem Akhtar Mian Ahsan Ali
Chief Executive Officer Director
H. SADAR ALI AKHTAR ALI (PRIVATE) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED JUNE 30, 2019

Share capital Revenue reserve

Issued, Surplus on
Unappropriated
subscribed property plant Total
profit
and paid up and equipment

…………..………...Rupees……………………….
3
Balance as at July 01, 2017 - restated 9,880,000 498,379,842 1,125,656,958 1,633,916,800

Total comprehensive income for the year

Profit for the year - - 9,372,627 9,372,627
Other comprehensive income - - - -
- - 9,372,627 9,372,627
Revaluation surplus transferred to equity in respect
- (41,872,238) 41,872,238 -
of incremental depreciation

Balance as at June 30, 2018 9,880,000 456,507,604 1,176,901,823 1,643,289,427

Total comprehensive income for the year

Profit for the year - - 12,425,064 12,425,064
Other comprehensive income - - - -
12,425,064 12,425,064
Revaluation surplus transferred to equity in respect
- (36,008,039) 36,008,039 -
of incremental depreciation

Balance as at June 30, 2019 9,880,000 420,499,565 1,225,334,927 1,655,714,491

The annexed notes from 1 to 38, form an integral part of these financial statements.

__________________ _______________
Mian Naeem Akhtar Mian Ahsan Ali
Chief Executive Officer Director
H. SADAR ALI AKHTAR ALI (PRIVATE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2019

1 THE COMPANY AND ITS OPERATIONS

1.1 H. Sadar Ali Akhtar Ali (Private) Limited (the Company) was incorporated in Pakistan on 11th August, 1985, under the repealed Companies Ordinance, 1984
(Now Companies Act, 2017). The principal activity of the Company is to manufacture and sale of tanned, finished leather, leather products and ready made
garments.
1.2 The geographical location and address of the Company’s offices and manufacturing unit is as under:
Head office Branch office
14-G.T. Road, Hide Market, Lahore. Din Garh, Kasur.
Manufacturing unit
(i) Niaz Nagar Kasur
(ii) Mauza Halloki, Lahore
2 BASIS OF PREPARATION
2.1 Statement of compliance
These financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan. The accounting and
reporting standards applicable in Pakistan comprise of:
- International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB) as notified under the Companies Act,
2017; and
- Provisions of and directives issued under the Companies Act, 2017.
- Where provisions of and directives issued under the Companies Act, 2017 differ from the IFRSs, the provisions of and directives issued under the Companies
Act, 2017 have been followed.
2.2 Basis of measurement
These financial statements have been prepared under the historical cost convention, except as otherwise stated in the relevant accounting policies below.
2.3 Functional and presentation currency
These financial statements are presented in Pak Rupees, which is the Company’s functional and presentation currency.
2.4 Critical accounting estimates and judgments
The preparation of financial statements in conformity with the approved accounting and reporting standards requires the use of certain critical accounting
estimates. In addition, it requires management to exercise judgement in the process of applying the Company’s accounting policies. The areas involving a high
degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are documented in the following
accounting policies and notes, and relate primarily to:
i) Useful lives, residual values and depreciation method of property, plant and equipment – Note 3.1 & 4.1
ii) Provision for impairment of inventories - Note 3.2, 3.3 and 6 & 7
iii) Provision for doubtful trade receivables – Note 3.4 & 8
iv) Impairment loss of non-financial assets other than inventories – Note 3.12
vii) Provision for taxation - Note 3.16 & 27
viii) Estimation of contingent liabilities - Note 3.11 & 19
2.5 New and amended standards and interpretations
2.5.1 Standards, amendments to approved accounting standards effective in current year and adopted by the Company
IFRS 9 ‘Financial Instruments’ became effective from June 30, 2019 and IFRS 15 ‘Revenue from Contracts with Customers’ became effective from July 01,
2018. SECP through S.R.O. 985 (I)/2019 dated September 02, 2019 has notified that in respect of companies holding financial assets due from the
Government of Pakistan, if any, the requirements contained in IFRS 9 with respect to application of expected credit loss (ECL) model shall not be applicable
till June 30, 2021, provided that such companies shall follow relevant requirements of IAS 39 ‘Financial Instruments: Recognition and Measurement’ in
respect of above referred financial assets during the exemption period. IFRS 9 introduces the ECL model, which replaces the incurred loss model of IAS 39
whereby an allowance for doubtful debt was required only in circumstances where a loss event has occurred. By contrast, the ECL model requires the
Company to recognise an allowance for doubtful debt on all financial assets measured at amortised cost, irrespective of whether a loss event has occurred.
Impact of ECL on financial assets was not material and accordingly has not been included in these financial statements. Related changes in accounting policies
and impact on Company’s financial statements are explained in note 2.5.1.1 and note 2.5.1.2 to these financial statements.
2.5.1.1 IFRS 9 'Financial Instruments':
IFRS 9 ‘Financial instruments’ replaces IAS 39 “Financial Instruments: Recognition and measurement” and is effective for the year ended June 30, 2019.
IFRS 9 introduces new requirements for:
-the classification and measurement of financial assets and financial liabilities;
-impairment of financial assets; and
-hedge accounting.
IFRS 9 permits either a full retrospective or a modified retrospective approach for adoption. The Company has adopted the standard using the modified
retrospective approach for classification, measurement and impairment. This means that the cumulative impact, if any, of the adoption is recognized in
unappropriated profit as of July 01, 2018 and comparatives are not restated. Details of these new requirements as well as their impact on the Company’s
financial statements are described below:
H. SADAR ALI AKHTAR ALI (PRIVATE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2019

Classification and measurement of financial assets and financial liabilities

IFRS 9 requires the Company to assess the classification of financial assets in its statement of financial position in accordance with the cash flow
characteristics of the financial assets and the relevant business model that the Company has for a specific class of financial assets.
IFRS 9 eliminates the previous IAS 39 categories of held to maturity, loans and receivables and available for sale. IFRS 9 has different requirements for debt
and equity financial assets.
Debt instrument should be classified and measured at either :
- amortised cost, where the effective interest rate method will apply;
- fair value through other comprehensive income (FVTOCI), with subsequent recycling to the profit or loss upon disposal of the financial asset; or
- fair value through profit or loss (FVTPL).
Investment in equity instruments, should be classified and measured at:
- fair value through other comprehensive income (FVTOCI), with no subsequent recycling to the profit or loss upon disposal of the financial asset; or
- fair value through profit or loss (FVTPL).
The adoption of IFRS 9 has no significant effect on the Company’s accounting policies related to financial liabilities.
The effect of adopting IFRS 9 on the classification, measurement and carrying amounts of financial assets at July 01, 2018 is as follows:

Rupees

Classification category Measurement category Carrying amount

Original New Original New Original New Difference

(IAS 39) (IFRS 9) (IAS 39) (IFRS 9) (IAS 39) (IFRS 9)

Current financial assets

Loans and
Trade debts Amortised cost Amortised cost Amortised cost 315,774,658 315,774,658 -
receivables
Loans, advances and Loans and
Amortised cost Amortised cost Amortised cost 27,547,025 27,547,025 -
deposits receivables
Loans and
Due from the Government Amortised cost Amortised cost Amortised cost 129,662,430 129,662,430 -
receivables
Loans and
Other receivable Amortised cost Amortised cost Amortised cost 2,876,625 2,876,625 -
receivables
Loans and
Cash and bank balances Amortised cost Amortised cost Amortised cost 16,784,005 16,784,005 -
receivables

Current liabilities
Other financial Other financial
Short term borrowings Amortised cost Amortised cost 534,858,460 534,858,460 -
liabilities liabilities
Other financial Other financial
Trade and other payables Amortised cost Amortised cost 930,933,913 930,933,913 -
liabilities liabilities

Impairment of financial assets

IFRS 9 introduces the Expected Credit Loss (ECL) model, which replaces the incurred loss model of IAS 39 whereby an allowance for doubtful debt was
required only in circumstances where a loss event has occurred. By contrast, the ECL model requires the Company to recognize an allowance for doubtful debt
on all financial assets carried at amortized cost, as well as debt instruments classified as financial assets carried at fair value through other comprehensive
income, if any, since initial recognition, irrespective whether a loss event has occurred. For trade debts, the Company applies IFRS 9 simplified approach to
measure the expected credit losses (loss allowance) which uses a life time expected loss allowance while general 3-stage approach for other financial assets
(Trade debts, loans advances and deposits, due from Government, other receivables and cash and bank balances) i.e. to measure ECL through loss allowance at
an amount equal to 12-month ECL if credit risk on a financial instrument or a group of financial instruments has not increased significantly since initial
recognition. The adoption of ECL model has no material impact on the financial assets of the Company to which ECL model is applicable.

2.5.1.2 IFRS 15 ‘Revenue from Contracts with Customers’

IFRS 15 replaces IAS 18 ‘Revenue’ and IAS 11 'Construction Contracts' and related interpretations. IFRS 15 addresses revenue recognition for contracts with
customers as well as treatment of incremental costs incurred in acquiring a contract with a customer.
IFRS 15 establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. Specifically, the
standard introduces a 5 - step approach to revenue recognition:
Step 1 Identify the contract with a customer
Step 2 Identify the performance obligations in the contract
Step 3 Determine the transaction price
Step 4 Allocate the transaction price to the performance obligations in the contract
Step 5 Recognize revenue when (or as) the entity satisfies a performance
Under IFRS 15, an entity recognizes revenue when, or as, a performance obligation is satisfied i.e. when ‘control’ of the goods or services underlying the
particular performance obligation is transferred to the customer.
H. SADAR ALI AKHTAR ALI (PRIVATE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2019

IFRS 15 permits either a full retrospective or a modified retrospective approach for adoption. The Company has adopted the standard using the modified
retrospective approach, which means that the cumulative impact of the adoption, if any, is recognized in unappropriated profit as of July 01, 2018 and
comparatives are not restated. The adoption of IFRS 15 did not have any impact on the Company’s financial statements. The Company generates its revenue
from sale of goods. The Company’s contracts with customers for the sale of goods generally include one performance obligation. The Company has concluded
that revenue from sale of goods should be recognised at the point in time when control of the asset is transferred to the customer, generally on delivery of the
goods. Therefore, the adoption of IFRS 15 did not have an impact on the timing of revenue recognition and the amount of revenue recognised.

2.5.2 Standards, amendments to approved accounting standards and interpretations that are not yet effective and have not been early adopted by the
Company
The following standards, amendments and interpretations with respect to approved accounting standards would be effective from the date mentioned below
against the respective standards, amendments or interpretations:

Effective date (accounting period

Standards, Interpretations or Amendments
beginning on or after)
IAS 1 Presentation of financial statements (Amendments) January 1, 2020
IAS 8 Accounting policies, changes in accounting estimates and errors (Amendments) January 1, 2020
IAS 12 Income Taxes (Amendments) January 1, 2019
IAS 19 Employee benefits (Amendments) January 1, 2019
IAS 23 Borrowing Costs (Amendments) January 1, 2019
IAS 28 Investment in Associates and Joint Ventures (Amendments) January 1, 2019
IFRS 3 Business combinations (Amendments) January 1, 2020
IFRS 9 Financial Instruments (Amendments) January 1, 2019
IFRS 11 Joint Arrangements (Amendments) January 1, 2019
IFRS 16 Leases January 1, 2019
IFRIC 23 Uncertainty Over Income Tax January 1, 2019
The management anticipates that adoption of above standards, amendments and interpretations in future periods will have no material impact on the financial
statements other than presentation and/or disclosures.

3 SIGNIFICANT ACCOUNTING POLICIES

3.1 Property, plant and equipment
Property, plant and equipment (except freehold land, buildings on freehold and plant and machinery) are stated at cost less accumulated depreciation and
impairment losses, if any. Freehold land, buildings on freehold plant and machinery are stated at revalued amounts less subsequent accumulated depreciation
and subsequent impairment losses, if any.
A revaluation surplus is recorded in other comprehensive income (OCI) and credited to the asset revaluation surplus in equity. However, the increase is
recorded in the statement of profit or loss to the extent it reverses a revaluation deficit of the same asset previously. A decrease as a result of revaluation is
recognised in the statement of profit or loss however, a decrease is recorded in statement of other comprehensive income to the extent of any credit balance
entry in revaluation surplus in respect of same assets.
An annual transfer from the asset revaluation surplus to retained earnings is made for the difference between depreciation based on the revalued carrying
amount of the asset and the depreciation based on assets original cost. Additionally, accumulated depreciation as at the revaluation date is eliminated against
the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Upon disposal, any revaluation surplus relating to the
particular asset being sold is transferred to unappropriated profit.
Gains and losses on disposal of assets are taken to the statement of profit or loss, and the related surplus / deficit on revaluation of property, plant and
equipment is transferred directly to unappropriated profit.
Depreciation charge is based on the reducing balance method whereby the cost or revalued amount of an asset is written off to statement of profit or loss over
its estimated useful life after taking into account residual value, if material. The cost of leasehold land is depreciated in equal instalments over the lease period.
Depreciation on additions is charged from the month in which the asset is available for use and no depreciation is charged for the month in which the asset is
disposed off.
Capital work-in-progress
All cost / expenditure connected with specific assets incurred during implementation period are carried under this head. These are transferred to specific assets
as and when assets are available for use.
3.2 Stores and spares
Stores and spares are valued at the lower of weighted average cost and net realizable value (NRV) except for items in transit, which are stated at invoice values
and related expenses incurred upto the date of statement of financial position.
Provision / write-off (if required) is made in the financial statements for slow moving, obsolete and unusable items to bring their carrying values down to NRV.
3.3 Stock-in-trade
Stock of raw materials, except for those in transit, work-in-process and finished goods are valued principally at the lower of weighted average cost and NRV.
Cost of work-in-process and finished goods comprises cost of direct materials, labour and appropriate manufacturing overheads.
Materials in transit are stated at cost comprising invoice values plus other charges incurred thereon.
Provision (if required) is made in the financial statements for slow moving, obsolete and unusable items to bring their carrying values down to NRV.
H. SADAR ALI AKHTAR ALI (PRIVATE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2019

3.4 Trade debts and other receivables

Trade debts are initially recognized at fair value and subsequently measured at amortised cost using the effective interest method, less any allowance for
expected credit losses.
Other receivables are recognized at amortised cost, less any allowance for expected credit losses.
The Company has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance. To measure the expected
credit losses, trade receivables have been grouped based on days overdue.
3.5 Financial instruments
Financial instruments carried on the statement of financial position include trade debts, loans advances and deposits, due from Government, other receivables,
cash and bank balances, trade and other payables, short-term borrowings, accrued mark-up etc. Financial assets and liabilities are recognized when the
Company becomes a party to the contractual provisions of instrument. Initial recognition is made at fair value plus transaction costs directly attributable to
acquisition, except for “financial instruments at fair value through profit or loss” which are initially measured at fair value.
Financial assets are de-recognized when the Company loses control of the contractual rights that comprise the financial asset. The Company loses such control
if it realizes the rights to benefits specified in contract, the rights expire or the Company surrenders those rights. Financial liabilities are de-recognized when
the obligation specified in the contract is discharged, cancelled or expired.
3.5.1 Initial recognition
All financial assets and liabilities are initially measured at cost which is the fair value of the consideration given or received. These are subsequently measured
at fair value, amortised cost or cost as the case may be.
3.5.1.1 Classification of financial assets - policy applicable from July 01, 2018
The Company classifies its financial instruments in the following categories:
- at amortised cost;
- fair value through profit or loss (FVTPL);
- fair value through other comprehensive income (FVTOCI).
The Company determines the classification of financial assets at initial recognition. The classification of instruments is driven by the Company’s business
model for managing the financial assets and their contractual cash flow characteristics.
Financial assets that meet the following conditions are subsequently measured at amortised cost:
- the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
- the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding.
Financial assets that meet the following conditions are subsequently measured at FVTOCI:
- the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling the financial assets; and
- the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding.
By default, all other financial assets are subsequently measured at FVTPL.
3.5.1.2 Classification of financial liabilities - policy applicable from July 01, 2018
The Company classifies its financial liabilities in the following categories:
- at fair value through profit or loss (“FVTPL”); and
- at amortised cost.
Financial liabilities are measured at amortised cost, unless they are required to be measured at FVTPL (such as instruments held for trading or derivatives) or
the Company has opted to measure them at FVTPL.
3.5.1.3 Subsequent measurement - policy applicable from July 01, 2018
-Financial assets and liabilities at amortised cost
Financial assets and liabilities at amortised cost are initially recognized at fair value, and subsequently carried at amortised cost, and in the case of financial
assets, less any impairment.
- Financial assets and liabilities at FVTPL
Financial assets and liabilities carried at FVTPL are initially recorded at fair value and transaction costs are expensed in the statement of profit or loss.
Realized and unrealized gains and losses arising from changes in the fair value of the financial assets and liabilities held at FVTPL are included in the
statement of profit or loss in the period in which they arise.
- Financial assets at FVTOCI
Elected investments in equity instruments at FVTOCI are initially recognized at fair value plus transaction costs. Subsequently, they are measured at fair value,
with gains or losses arising from changes in fair value recognized in other comprehensive income.
3.5.1.4 Impairment of financial assets - policy applicable from July 01, 2018
The Company recognizes loss allowance for ECL on financial assets measured at amortised cost except for debts due directly / ultimately from Government of
Pakistan, if any, in respect of which exemption is granted by SECP as explained in note 2.5.1. For trade debts, if any, the Company applies IFRS 9 simplified
approach to measure the expected credit losses (loss allowance) which uses a life time expected allowance. The Company uses General 3-stage approach for
advances, deposits, other receivables and cash and bank balances i.e. to measure ECL through loss allowance at an amount equal to 12-month ECL if credit
risk on a financial instruments has not increased significantly since initial recognition.
H. SADAR ALI AKHTAR ALI (PRIVATE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2019

Life time ECLs are the ECLs that results from all possible default events over the expected life of a financial instrument. 12 months’ ECL are portion of ECL
that result from default events that are possible within 12 months after the reporting date.
ECLs are a probability weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between cash
flows due to the entity in accordance with the contract and cash flows that the Company expects to receive).

The gross carrying amount of a financial asset is written off when the Company has no reasonable expectation of recovering a financial asset in its entirety or a
portion thereof.

In respect of financial assets due directly / ultimately from Government of Pakistan, the financial asset is assessed at each reporting date to determine whether
there is any objective evidence that it is impaired. A financial asset is considered to be impaired if objective evidence indicates that one or more events have
had a negative effect on the estimated future cash flows of that asset. Individually significant financial assets are tested for impairment on an individual basis.
The remaining financial assets are assessed collectively in groups that share similar credit risk characteristics.
3.5.1.5 Derecognition - policy applicable from July 01, 2018
The Company derecognizes financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or they expire.
- Financial assets
The Company derecognizes financial assets only when the contractual rights to cash flows from the financial assets expire or when it transfers the financial
assets and substantially all the associated risks and rewards of ownership to another entity. On derecognition of a financial asset measured at amortised cost,
the difference between the asset’s carrying value and the sum of the consideration received and receivable is recognized in profit or loss. In addition, on
derecognition of an investment in a debt instrument classified as FVTOCI, the cumulative gain or loss previously accumulated in the investments revaluation
reserve is reclassified to profit or loss. In contrast, on derecognition of an investment in equity instrument which the Company has elected on initial recognition
to measure at FVTOCI, the cumulative gain or loss previously accumulated in the investments revaluation reserve is not reclassified to profit or loss, but is
transferred to statement of changes in equity.
- Financial liabilities
The Company derecognizes financial liabilities only when its obligations under the financial liabilities are discharged, cancelled or expired. The difference
between the carrying amount of the financial liability derecognised and the consideration paid and payable, including any non-cash assets transferred or
liabilities assumed, is recognized in the statement of profit or loss.
3.5.1.6 Classification of financial assets - policy applicable before July 01, 2018
- Investments held to maturity
Investments, if any, with fixed or determinable payments and fixed maturity and where the Company has positive intent and ability to hold investments to
maturity are classified as investments held to maturity. These are initially recognized at cost inclusive of transaction costs and are subsequently carried at
amortized cost using the effective interest rate method, less any impairment losses.
- Loans and receivables
These are initially measured at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, they are measured at amortized cost
using the effective interest method.
- Investments at fair value through profit or loss
An investment, if any, is classified at fair value through profit or loss if it is held for trading or is designated as such upon initial recognition. Financial
instruments are designated at fair value through profit or loss if the Company manages such investments and makes purchase and sale decisions based on their
fair value in accordance with the Company’s investment strategy. All investments classified as investments at fair value through profit or loss are initially
measured at cost being fair value of consideration given. At subsequent dates these investments are measured at fair value, determined on the basis of
prevailing market prices, with any resulting gain or loss recognized directly in profit or loss.
3.5.1.7 Impairment of financial assets - policy applicable before July 01, 2018
A financial asset is assessed at each reporting date to determine whether there is any objective evidence that it is impaired. A financial asset is considered to be
impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset. Individually
significant financial assets are tested for impairment on an individual basis. The remaining financial assets are assessed collectively in groups that share similar
credit risk characteristics.

3.5.1.8 Off-setting of financial assets and liabilities

Financial assets and liabilities are offset and the net amount is reported in the financial statements if, and only if, there is a currently enforceable legal right to
set-off the recognized amounts and the Company intends either to settle on a net basis or to realize the assets and to settle the liabilities simultaneously.
Incomes and expenses arising from such assets and liabilities are also set-off accordingly.
3.6 Cash and cash equivalents
Cash and cash equivalents comprise cash in hand, cash at bank on current accounts and other short-term highly liquid instruments that are readily convertible
in to known amounts of cash and which are subject to insignificant risk of changes in values.
3.7 Share capital
Ordinary shares are classified as equity and recognized at their face value.
3.8 Trade and other payables
Liabilities for trade and other payables are carried at cost which is the fair value of the considerations to be paid in the future for the goods and / or services
received, whether or not billed to the Company.
H. SADAR ALI AKHTAR ALI (PRIVATE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2019

3.9 Borrowings
Borrowings are initially recognized at fair value, net of transaction costs incurred and subsequently carried at amortized cost using the effective interest
method.
Borrowings are classified as current liabilities unless the Company has an unconditional / contractual right to defer settlement of the liability for at least twelve
months after the reporting date.
3.10 Provisions
Provisions are recognized when the Company has a present, legal or constructive obligation as a result of past events and it is probable that an outflow of
resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount can be made. Provisions are reviewed at
each reporting date and adjusted to reflect the current best estimate.

3.11 Contingent liabilities

A contingent liability is disclosed when the Company has a possible obligation as a result of past events, whose existence will be confirmed only by the
occurrence or non-occurrence, of one or more uncertain future events not wholly within the control of the Company; or the Company has a present legal or
constructive obligation that arises from past events, but it is not probable that an outflow of resources embodying economic benefits will be required to settle
the obligation, or the amount of the obligation cannot be measured with sufficient reliability.
3.12 Impairment
Non-financial assets
The carrying amounts of the Company’s non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If
such indication exists, the recoverable amount of such asset is estimated. An impairment loss (if any) is recognized wherever the carrying amount of the asset
exceeds its recoverable amount. Impairment losses (if any) are recognized in statement of profit or loss. A previously recognized impairment loss (if any) is
reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. If that
is the case, the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have
been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the statement of profit
or loss.
3.13 Foreign currency transactions and translation
Transactions denominated in foreign currencies are translated to Pak Rupees, at the foreign exchange rate prevailing at the date of transaction. Monetary assets
and liabilities in foreign currencies are re-translated into Pak Rupees at the foreign exchange rates at the reporting date. Exchange differences are taken to the
statement of profit or loss.
3.14 Revenue recognition
Policy applicable from July 01, 2018
Revenue is recognized at an amount that reflects the consideration to which the Company is expected to be entitled in exchange for transferring goods or
services to a customer. For each contract with a customer, the Company: identifies the contract with a customer; identifies the performance obligations in the
contract; determines the transaction price which takes into account estimates of variable consideration and the time value of money; allocates the transaction
price to the separate performance obligations on the basis of the relative stand-alone selling price of each distinct good or service to be delivered; and
recognizes revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods or services promised.
Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as discounts, rebates and refunds, any potential
bonuses receivable from the customer and any other contingent events. Such estimates are determined using either the 'expected value' or 'most likely amount'
method. The measurement of variable consideration is subject to a constraining principle whereby revenue will only be recognized to the extent that it is highly
probable that a significant reversal in the amount of cumulative revenue recognized will not occur. The measurement constraint continues until the uncertainty
associated with the variable consideration is subsequently resolved. Amounts received that are subject to the constraining principle are initially recognized as
deferred revenue in the form of a separate refund liability.
Sale of goods
Revenue from the sale of goods is recognized at the point in time when the customer obtains control of the goods, which is generally at the time of delivery.
Other revenue
-Dividend is recognized when right to receive is established.
-Rental income is recognized when it is due.
-Other revenue is recognized when it is received or when the right to receive payment is established.
3.14.1 Policy applicable before July 01, 2018
-Sales revenue is recognized when goods are dispatched and significant risks and rewards of ownership are transferred to the customer.
-Dividend is recognized when right to receive is established.
-Rental income is recognized when it is due.
3.14.2 Policy applicable from July 01, 2018
Contract assets
A contract asset is the right to consideration in exchange for goods or services transferred to the customer. The Company recognizes a contract asset for the
earned consideration that is conditional if the Company performs by transferring goods or services to a customer before the customer pays consideration or
before payment is due.
H. SADAR ALI AKHTAR ALI (PRIVATE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2019

Contract liabilities
A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration from the customer. A
contract liability is recognized at earlier of when the payment is made or the payment is due if a customer pays consideration before the Company transfers
goods or services to the customer.

Right of return assets

Right of return asset represents the Company’s right to recover the goods expected to be returned by customers. The asset is measured at the former carrying
amount of the inventory, less any expected costs to recover the goods, including any potential decreases in the value of the returned goods. The Company
updates the measurement of the asset recorded for any revisions to its expected level of returns, as well as any additional decreases in the value of the returned
products.
Refund liabilities
A refund liability is the obligation to refund some or all of the consideration received (or receivable) from the customer and is measured at the amount the
Company ultimately expects it will have to return to the customer. The Company updates its estimates of refund liabilities (and the corresponding change in the
transaction price) at the end of each reporting period.

3.15 Borrowing costs

Borrowing costs (if any) directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a
substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for
their intended use or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is
deducted from the borrowing costs eligible for capitalization. All other borrowing costs are expensed in the period in which they occur. Borrowing costs
consist of interest and other costs that an entity incurs in connection with the borrowing of funds.
3.16 Taxation
Current
The charge for current taxation is based on taxable income at the current rates after taking into account applicable tax credits, rebates and exemption available
(if any) or on turnover at the specified rates or Alternate Corporate Tax as defined in the 113C of the Income Tax Ordinance, 2001, whichever is higher.
However, for income covered under final tax regime, taxation is based on applicable tax rates under such regime. The charge for current tax also includes
adjustments, where necessary, relating to prior years which arise due to assessment framed / finalized during the year.
Deferred
Deferred tax is provided using the liability method for all temporary differences at the balance sheet date between tax bases of assets and liabilities and their
carrying amounts for financial reporting purposes. In this regard, the effects on deferred taxation of the portion of income subject to final tax regime is also
considered in accordance with the requirement of Technical Release-27 of the Institute of Chartered Accountants of Pakistan (ICAP).
Deferred income tax asset is recognized for all deductible temporary differences and carry forward of unused tax losses, if any, to the extent that it is probable
that taxable profits and taxable temporary differences will be available against such temporary differences and tax losses can be utilized.
Deferred income tax assets and liabilities are measured at the tax rate that are expected to apply to the period when the asset is realized or the liability is settled,
based on tax rates that have been enacted or substantively enacted at the reporting date.
3.17 Employee benefit
The employee benefit represents an unfunded gratuity scheme for all its permanent employees subject to a minimum qualifying period of service according to
the terms of employment. The scheme defines the amount which an employee will receive on or after retirement, usually dependent on one or more factors
such as years of service and compensation.
Provision is made at each reporting date with reference to number of years completed multiplied by last drawn monthly gross salary. The difference between
current and previous provision for gratuity is charged to the statement of profit or loss as expense for the year.
3.18 Related party transactions
A related party transaction is a transfer of resources, services and obligations between the Company and its related parties, regardless of whether a price is
charged. The Company regularly reviews the related party transactions and related party relationships and disclose such transactions in the financial
statements.
H. SADAR ALI AKHTAR ALI (PRIVATE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2019

4 PROPERTY, PLANT AND EQUIPMENT 2019 2018

Note ………..Rupees……..
Operating property, plant and equipment 4.1 817,710,980 828,122,668
Capital work-in-progress 4.3 25,775,277 -
843,486,258 828,122,668

4.1 Reconciliations of net book value of operating property, plant and equipment at the beginning and end of the year are as follows:

2019
Cost Depreciation Net book value
Description As at Revaluation Additions/ As at Rate As at For the year As at As at
July 01, 2018 Surplus (deletions) June 30, 2019 July 01, 2018 (adjustment) June 30, 2019 June 30, 2019
………………..Rupees…………….. ………………..Rupees……………..

Land - free- hold 185,707,154 96,329,000 6,660,587 288,696,741 - - - - 288,696,741

Buildings on free hold

326,577,533 71,829,778 27,212,160 425,619,471 10% 210,884,691 20,852,506 231,737,197 193,882,274
land

Plant and machinery 546,624,547 192,282,109 12,808,365 751,715,021 15% 428,540,884 47,378,712 475,919,596 275,795,425

Arms and ammunition 33,580 - - 33,580 15% 33,062 78 33,139 441

Vehicles 66,296,684 - 29,264,321 74,205,511 15% 27,920,706 8,616,240 26,374,232 47,831,279

(21,355,494) (10,162,714)

Sewing machine 3,019,405 - - 3,019,405 15% 2,556,934 69,371 2,626,305 393,100

Generators 9,154,605 - 867,370 10,021,975 15% 6,567,745 485,608 7,053,353 2,968,622

Equipments 12,850,559 - 743,567 13,594,126 15% 8,647,203 674,265 9,321,469 4,272,657

Furniture and fittings 5,946,291 - 1,506,483 7,452,774 15% 3,377,352 433,987 3,811,339 3,641,435

IT equipments - - 249,910 249,910 30% - 20,904 20,904 229,006

Total 1,156,210,358 360,440,887 79,312,763 1,574,608,514 688,528,578 78,531,670 756,876,630 817,710,980

(21,355,494) (10,162,714)
H. SADAR ALI AKHTAR ALI (PRIVATE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2019

2018
Cost Depreciation Net book value
Description As at Revaluation Additions/ As at Rate As at For the year As at As at
July 01, 2017 Surplus (deletions) June 30, 2018 July 01, 2017 (adjustment) June 30, 2018 June 30, 2018
………………..Rupees…………….. ………………..Rupees……………..

Land - free- hold 185,707,154 96,329,000 - 282,036,154 - - - 282,036,154

Buildings on free hold

325,267,533 71,829,778 1,310,000 398,407,311 10% 190,158,104 20,726,587 210,884,691 187,522,620
land

Plant and machinery 528,344,470 192,282,109 18,280,077 738,906,656 15% 375,196,582 53,344,302 428,540,884 310,365,772

Arms and ammunition 33,580 - 33,580 15% 32,971 90 33,062 518

Vehicles 80,356,392 - 3,740,760 66,296,684 15% 33,659,499 3,192,463 27,920,706 38,375,978

(17,800,468) (8,931,256)
Sewing machine 3,019,405 - 3,019,405 15% 2,475,322 81,612 2,556,934 462,471

Generators 9,154,605 - 9,154,605 15% 6,111,240 456,505 6,567,745 2,586,860

Equipments 12,850,559 - 12,850,559 15% 7,905,434 741,769 8,647,203 4,203,356

Furniture and fittings 4,616,591 - 1,329,700 5,946,291 15% 3,095,522 281,830 3,377,352 2,568,939
Total 1,149,350,289 360,440,887 24,660,537 1,516,651,245 618,634,675 78,825,159 688,528,578 828,122,668
(17,800,468) (8,931,256)

4.2 Detail of disposals of property, plant and equipment having net book value in excess of Rs 500,000 are as follows:

Accumulated Particulars of Mode of

Asset Cost Net book value Sale price Loss on disposal Relationship
depreciation purchaser disposal
……….…..…........…........................... Rupees ..........................................................

Motor vehicle 2,230,695 1,064,970 1,165,725 1,000,000 (165,725) Sheraz Ramzan Company policy Third party
Malik

Motor vehicle 1,010,448 486,879 523,569 665,000 141,431 Saqib Butt Company policy Employee

Sheikh Atif
Motor vehicle 13,951,408 6,422,358 7,529,050 7,500,000 (29,050) Company policy Third party
Ismail
H. SADAR ALI AKHTAR ALI (PRIVATE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2019
Accumulated Particulars of Mode of
Asset Cost Net book value Sale price Loss on disposal Relationship
depreciation purchaser disposal
……….…..…........…........................... Rupees ..........................................................

Motor vehicle 2,572,080 1,392,024 1,180,056 1,150,000 (30,056) Ghulam Abbas Company policy Third party

19,764,631 9,366,231 10,398,400 10,315,000 (83,400)

Others 1,590,863 796,483 794,380 925,000 130,620

21,355,494 10,162,714 11,192,780 11,240,000 47,220

2019 2018
4.3 Capital work-in-progress Note ………..Rupees……..

Water treatment plant 4.3.1 25,775,277 -

25,775,277 -

4.3.1 Following is the movement in capital work-in-progress

Opening balance - -
Additions during the year 25,775,277 -
25,775,277 -
Transferred to operating property, plant and equipment during the year - -
Closing balance 25,775,277 -
H. SADAR ALI AKHTAR ALI (PRIVATE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2019

Other receivable
It includes balance due from related party which is under common control and ownership against which chances of default are
remote, hence no impairment allowance is required there against.

Other financial assets

The credit risk on liquid funds is low because the counter parties are banks with reasonably high credit ratings. The credit
quality of cash at bank (in current accounts) as per credit rating agencies are as follows:
Bank name Short term Long term Agency 2019 2018
……...…...Rupees…………….
National bank of Pakistan
A1+ AAA PACRA 719,109 456,974
Ltd
Bank of Punjab Ltd A1+ AA PACRA 2,147,291 982,313
Bank-al-falah Ltd A1+ AA+ PACRA 249,721 241,380
MCB bank Ltd A1+ AAA PACRA 109,035 93,701
Bank-al-habib Ltd A1+ AA+ PACRA 2,211,759 7,318,152
Habib Metropolitan bank -
A1+ AA+ PACRA 31,331,374
Ltd
Standard chartered bank 5,722,703 22,852
A1+ AAA PACRA
Ltd
42,490,991 9,115,372

29.3 Liquidity Risk

Liquidity risk is the risk that one enterprise will encounter difficulty in raising funds to meet commitments associated

with financial instruments. The Management believes that it is not exposed to any significant level of liquidity risk.

Carrying Contractual Less than 3

As at June 30, 2019 3 to 12 months 1 to 5 years
amount cash flows month
…………………………………………Rupees……………………………………
Short term borrowings
557,479,167 557,479,167 557,479,167 - -
Trade and other
791,608,720 791,608,720 789,291,624 2,317,096 -
payables
1,349,087,887 1,349,087,887 1,346,770,791 2,317,096 -

Contractual cash
As at June 30, 2018 Carrying amount Less than 3 month 3 to 12 months 1 to 5 years
flows
…………………………………………Rupees……………………………………
Short term borrowings 534,858,460 534,858,460 534,858,460 - -
Trade and other payables
930,933,913 930,933,913 533,174,317 1,684,143 -
1,465,792,372 1,465,792,372 1,068,032,777 1,684,143 -

29.4 Fair Value of Financial Instruments

The carrying value of all the financial instruments reported in the financial statements approximates their fair value.
29.5 Financial Instruments by category
The accounting policies for financial instruments have been applied for line items below:

2019 2018
………………..Rupees……………….
Financial assets at amortised cost
Trade debts 209,660,355 315,774,658
Loans, advances and deposits 42,611,283 27,547,025
Other receivable 2,908,877 2,876,625
Cash and bank balances 44,504,488 16,784,005
H. SADAR ALI AKHTAR ALI (PRIVATE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2019
299,685,003 362,982,313
H. SADAR ALI AKHTAR ALI (PRIVATE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2019

2019 2018
……...Rupees…….
Financial liabilities at amortised cost
Short term borrowings 557,479,167 534,858,460
Trade and other payables 791,608,720 930,933,913
1,349,087,887 1,465,792,372

30 CAPITAL RISK MANAGEMENT

The Company's objective when managing capital is to safeguard the Company's ability to continue as a going concern so that it
can continue to provide returns for shareholders and benefits for other stakeholders; and to maintain a strong capital base to
support the sustained development of its businesses.
The Company manages its capital structure by monitoring return on net assets and makes adjustments to it in the light of
changes in economic conditions. The Company also monitors capital using a gearing ratio. Capital signifies equity as shown in
the statement of financial position plus borrowings. The gearing ratios as at June 30, 2019 and June 30, 2018 are as follows:

Short term borrowings 557,479,167 534,858,460

Total equity 1,655,714,492 1,643,289,427
Total capital employed 2,213,193,659 2,178,147,887

Gearing ratio 25.19% 24.56%

31 REMUNERATION OF CHIEF EXECUTIVE OFFICER, DIRECTORS AND EXECUTIVES

REMUNERATION NUMBER OF PERSONS

2019 2018 2019 2018
……………………………………………..Rupees…………………………………………
Chief Executive Officer 3,137,042 1,200,000 1 1
Directors 14,006,717 6,600,000 4 4
Executives 2,910,000 1,345,000 2 1
20,053,759 9,145,000 7 6

32 CASH AND CASH EQUIVALENTS

Cash and bank balances 44,504,488 16,784,005
Bank overdraft (132,025,581) (161,921,589)
(87,521,092) (145,137,584)

33 TRANSACTIONS WITH RELEATED PARTIES

Related parties comprise associated companies, companies where directors also hold directorship, directors of the Company and

key employees. Significant transactions with related parties, other than disclosed in Note 29 , during the year are as under:"

Transaction
Name of related party Relationship 2019 2018
during the year
……………Rupees………………
Goodlife farms (Private) Associated company by virtue of Sale of diesel oil,
Limited common directorship Mobil oil, engine 441,098 475,179
oil, and grease
Expenses incurred
- 1,089,000
on behalf
Akhtar Industries Associated company by virtue of
Purchases of goods - 358,859
(Private) Limited common directorship
Expenses incurred
- 1,068,431
on behalf
H. SADAR ALI AKHTAR ALI (PRIVATE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2019
Transaction
Name of related party Relationship 2019 2018
during the year
……………Rupees………………
Associated company by virtue of Purchase of leather - -
Ansa Leather
common directorship
Mian Saleem Akhtar Expenses incurred
Director 12,526,280 8,559,444
on behalf
Mian Naeem Akhtar Expenses incurred
Director 14,960,593 22,153,133
on behalf
Expenses incurred
Mian Ahsan Ali Director 17,027,409 4,777,616
on behalf
Expenses incurred
Mian Hassan Ali Director 126,364 1,361,401
on behalf
Expenses incurred
Mian Mohsan Ali Director 39,755,870 11,002,415
on behalf
2019 2018
Number Number
34 NUMBER OF EMPLOYEES
Number of employees at year end 503 250
Average number of employees during the year 382 228

2019 2018
sq.ft. sq.ft.
35 PLANT CAPACITY AND PRODUCTION
Installed capacity 26,500,000 26,500,000
Actual production 17,055,142 17,254,551
Difference is due to the supply demand situation in the market.

36 CORRESPONDING FIGURES
Corresponding figures have been reclassified wherever necessary to reflect more appropriate presentation of events and

transactions for the purpose of comparison in accordance with the accounting and reporting standards as applicable in Pakistan.

37 GENERAL
Figures have been rounded off to the nearest rupee.

38 DATE OF AUTHORISATION FOR ISSUE

These financial statements were authorised for issue by the Board of Directors of the Company in their meeting held on
____________________.

__________________ _________________
Mian Naeem Akhtar Mian Ahsan Ali
Chief Executive Officer Director