HABIB MOTORS

STATEMENT OF FINANCIAL POSITION

AS AT JUNE 30, 2022

2022 2021
Note Rupees Rupees

CAPITAL AND LIABILITIES

Proprietor's Capital
Opening capital 70,073,037 69,622,220
Profit/(loss) for the year 5,247,812 3,475,817
75,320,849 73,098,037
Drawings (4,563,000) (3,025,000)
70,757,849 70,073,037

CURRENT LIABILITIES
Short term borrowings 59,902,759 -
Creditors, accruals & other payables 3 8,947,816 14,244,791
68,850,575 14,244,791

139,608,424 84,317,828
ASSETS

NON CURRENT ASSETS

Fixed Assets 4 97,360,622 73,590,622

CURRENT ASSETS
Stock 22,148,520 4,865,985
Account receivables 5 2,645,652 614,414
Advances, deposits and prepayments 6 14,885,203 4,722,033
Cash and bank balances 7 2,568,427 524,774
42,247,802 10,727,206

139,608,424 84,317,828
The annexed notes form an integral part of these financial statements.

PROPRIETOR
 HABIB MOTORS
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED JUNE 30, 2022

2022 2021
Note Rupees Rupees

Revenue 8 20,953,065 21,525,000

Cost of revenue 9 (19,949,582) (18,730,606)

Gross profit/(loss) 1,003,483 2,794,394

Operating expenses
Administrative and general expenses 10 (35,543,611) (35,730,913)

Operating profit/(loss) (34,540,128) (32,936,519)

Other income 11 43,406,315 37,073,401

Profit before interest and taxation 8,866,187 4,136,882

Financial charges 12 (2,146,476) -

Profit/(loss) before taxation 6,719,711 4,136,882

Taxation 13 (1,471,899) (661,065)

Net profit/(loss) for the year 5,247,812 3,475,817

The annexed notes form an integral part of these financial statements.

PROPRIETOR
 HABIB MOTORS
STATEMENT OF CASH FLOW
FOR THE YEAR ENDED JUNE 30, 2022

2022 2021
Rupees Rupees

CASH FLOW FROM OPERATING ACTIVITIES

Profit for the year 5,247,812 3,475,817
Adjustment for:
Depreciation - -
Operating profit before working capital changes 5,247,812 3,475,817

Changes in Working Capital:

(Increase)/decrease in current assets

Stock (17,282,535) (213,665)
Trade debtors (2,031,238) (65,673)
Advance deposits and prepayments (10,163,170) (1,936,842)
Increase/(decrease) in current liabilities
Short term borrowings 59,902,759 -
Creditors accruals and other liabilities (5,296,975) (15,742,261)
25,128,841 (17,958,441)
Net cash inflow / (outflow) from operating activities 30,376,653 (14,482,624)

CASH FLOW FROM INVESTING ACTIVITIES

Capital work in progress - -
Purchase of fixed assets (23,770,000) -
Net cash inflow / (outflow) from investing activities (23,770,000) -

CASH FLOW
Capital FROM FINANCING ACTIVITIES
investment
Drawings (4,563,000) (3,025,000)
Net cash inflow / (outflow) from financing activities (4,563,000) (3,025,000)

Net increase/(decrease) in cash and cash equivalent 2,043,653 (17,507,624)

Cash and cash equivalent at the beginning of year 524,774 18,032,398

Cash and cash equivalent at the end of year 2,568,427 524,774

The annexed notes form an integral part of these financial statements.

PROPRIETOR
 HABIB MOTORS
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2022

1- GENERAL INFORMATION

1.1- The financial statements are presented in Pak Rupee, which is the organization's
functional and presentation currency.

2- SIGNIFICANT ACCOUNTING POLICIES

2.1- Accounting conventions

The financial statements have been prepared under historical cost convention.

2.2- Provision
A provision is recognized in the balance sheet when the organization has a legal or
constructive obligation as a result of event and it is probable that an outflow of
economic benefits will be required to settle the obligation and a reliable estimate of
the amount can be made.

2.3- Creditors, accrual and other payables

Liabilities for creditors, accrual and other payable are carried at cost which is the fair
value of the consideration to be paid in the future for goods and services received,
whether or not billed to the organization.

2.4- Fixed assets

Fixed assets are stated at cost. Cost of fixed assets consists of historical cost, borrowing
cost pertaining to the erection construction period and attributable expenses in
bringing the assets to their working condition.

2.5- Account receivables

Accounts receivables are recognized and carried at original invoice amount.

2.6- Cash and cash equivalent

For the purpose of cash flow statement, cash and cash equivalents consisted cash in
hand, balances with banks.

2.7- Revenue recognition

Revenue is measured at the fair value of the consideration received.
 2022 2021
Note Rupees Rupees

3- CREDITORS, ACCRUALS & OTHER PAYABLES 8,947,816 14,244,791

4- FIXED ASSETS
Land 36,090,200 12,840,200
Building 56,059,422 56,059,422
Vehicles 3,711,000 3,711,000
Biological assets 1,500,000 980,000
97,360,622 73,590,622

5- ACCOUNT RECEIVABLES 2,645,652 614,414

6- ADVANCES, DEPOSITS AND PREPAYMENTS 14,885,203 4,722,033

7- CASH AND BANK BALANCES 2,568,427 524,774

 2022 2021
Note Rupees Rupees

8- REVENUE
Income from commission 20,953,065 21,525,000
20,953,065 21,525,000

9- COST OF REVENUE 19,949,582 18,730,606

10- ADMINISTRATIVE AND GENERAL EXPENSES

Staff salaries 25,778,524 23,752,300
Rent, rates and taxes 5,193,325 4,439,113
Travelling and conveyance 632,522 705,000
Utilities 262,000 425,000
Communication 375,000 602,000
Repair & maintenance 1,525,620 1,524,300
Printing and stationery 150,000 15,000
Advertisement 25,000 -
Professional charges 76,000 15,000
Others 1,525,620 4,253,200
35,543,611 35,730,913

11- OTHER INCOME

Income from pesticides 43,406,315 37,073,401
43,406,315 37,073,401

12- FINANCIAL CHARGES 2,146,476 -

13- TAXATION 1,471,899 661,065

14- FIGURES
The figures have been rounded off to the nearest rupee.

PROPRIETOR