| PAK LEATHER CRAFTS LIMITED |
|
|
|
|
|
|
|
| ANNUAL REPORT 2004 |
|
|
| OPERATING EXPENSES |
|
| In administrative
and selling overheads, the company registered an altogether decrease of 2% |
|
| (approx.) over the
last year which is a positive achievement. |
|
| FUTURE OUTLOOK |
|
| The International
Leather market has come out of sluggish trend and is responding well as
compared |
|
| to the last two
years and accordingly it is hoped that the sales as well as the profitability
of the |
|
| company in the next
financial year will improve further Irisha Allah. |
|
| CORPORATE AND
FINANCIAL REPORTING |
|
| In compliance with
the applicable listing regulations of Stock Exchanges, the directors of the |
|
| company do hereby
declare the following: |
|
| a) The financial statements prepared by
the management of the company, present fairly its |
|
| state of affairs,
the result of its operations, cash flow and changes in equity. |
|
| b) Proper books of account of the listed
company have been maintained. |
|
| c) Appropriate accounting policies have
been consistently applied in preparation of financial |
|
| statements.
Accounting estimates are based on reasonable and prudent judgement. |
|
| d) International Accounting Standards, as
applicable in Pakistan, have been followed in |
|
| preparation of
financial statements and any departure therefrom has been adequately |
|
| disclosed. |
|
| e) The system of internal control is sound
in design and has been effectively implemented and |
|
| monitored. |
|
| f) There are no doubts about the
company's ability to continue as a going concern. |
|
| g) There has been no material departure
from the best practices of corporate governance, as |
|
| detailed in the
listing regulations. |
|
| VALUE OF
INVESTMENTS OF PROVIDENT FUND |
|
| The value of
investments made by the Provident Fund based on the audited accounts for the
year |
|
| ended June 30, 2004
amounts to Rs. 2.47 million. |
|
|
| The Directors of
your company welcome you to the 17th Annual General Meeting and place before |
|
| you the Annual
Report alongwith Audited Accounts of the company for the year ended June 30,
2004. |
|
|
| FINANCIAL RESULTS |
|
|
| The
financial results of the Company for the year under report are shown below. |
|
|
|
2004 |
2003 |
|
|
|
Rupees |
Rupees |
|
| Profit / (Loss)
from operations |
|
7,031,545 |
-15,476,407 |
|
| Taxation |
|
-2,863,203 |
-1,709,910 |
|
| Profit / (Loss)
after tax |
|
4,168,342 |
-17,186,317 |
|
| Unappropriated
ProfiV(Loss) B/F |
|
22,772,872 |
39,959,189 |
|
| Available for
Appropriation |
|
26,941,214 |
22,772,872 |
|
| Proposed Dividend @
7.50% |
|
2,550,000 |
- |
|
| Unappropriated
Profit / (Loss) C/F |
|
24,391,214 |
22,772,872 |
|
| Profit / (Loss) per
share after tax |
|
1.23 |
-5.06 |
|
|
| The management is
pleased to inform you that during the year under review, due to better
planning |
|
| & vigorous
efforts made by the management, the export sales of the company increased
considerably |
|
| and the overall
operating and financial results remained quite satisfactory and encouraging.
The |
|
| company earned a
pre-tax profit of Rs. 7.031 (M) and after tax profit Rs. 4.168 (M) during the
above |
|
| financial year. |
|
| DIVIDEND |
|
| By the grace of
Almighty Allah and in view of the above financial results your directors are
pleased |
|
| to recommend @ 7.5%
for the year under report. |
|
| SALES |
|
| As a result of
better planning & serious efforts made by the management to boost exports
sales |
|
| of the company,
during the year under review the company's sales increased by 61 .98% over
the |
|
| last year. It is
hoped that keeping in view the present positive behaviour of the
international leather |
|
| markets, the export
sales in next financial year will increase further Insha Allah. |
|
| COST OF SALES |
|
| The Company earned
a gross profit of 13.21% in the financial year under review as compared with |
|
| a gross profit of
9.66% last year. |
|
|
| PARTICULARS |
|
2004 |
2003 |
2002 |
2001 |
2000 |
1999 |
|
| Net Sales |
|
385,947 |
238,257 |
344,466 |
567,527 |
313,563 |
309,130 |
|
| Gross Profit |
|
50,983 |
23,009 |
28,544 |
75,262 |
49,621 |
42,816 |
|
| Net
Profit/floss) before tax |
7,031 |
-15,476 |
-27,292 |
15,495 |
11,177 |
10,423 |
|
| Cash dividend |
|
2,550 |
- |
- |
2,550 |
4,250 |
2,550 |
|
| Gross Profit ( % ) |
|
13.21 |
9.66 |
8.29 |
13.26 |
15.82 |
13.85 |
|
| Net ProfiV(loss)
(%) |
1.82 |
-6.5 |
-7.92 |
2.87 |
3.56 |
3.37 |
|
| Earning/(loss) per
share |
|
|
| ( after tax ) |
|
1.23 |
-5.06 |
-9.01 |
3.08 |
2.44 |
2.28 |
|
| Current ratio |
|
1.13 |
1.12 |
1.05 |
1.13 |
1.19 |
1.14 |
|
|
| NUMBER OF BOARD
MEETINGS |
|
|
| During the year,
four board meetings were held, which were attended by each Director as under: |
|
|
Names |
No. of Meetings |
|
|
|
Attended / held |
|
| Continuing
Directors |
|
|
| Mr. M. Khurshid
Ahmed (Chairman) |
3/4 |
|
| Mr. M. Saleem Ahmed
(CEO) |
4/4 |
|
| Mr. M. Shoaib Ahmed |
4/4 |
|
| Mr. Tariq Mustafa
Khan |
4/4 |
|
| Mr. Nayyer Ahmed
Jalali |
4/4 |
|
| Mr. Habibullah
Sheikh |
4/4 |
|
| Outgoing Director |
|
|
|
| Mr. Hussain Aqa
Naqvi |
0/3 |
|
| Incoming Director |
|
|
|
| Mr. Kamil Khurshid
Ahmed |
1/1 |
|
|
| PATTERN OF
SHAREHOLDING |
|
| The pattern of
shareholding as on June 30, 2004 is annexed with this report. |
|
| AUDITORS |
|
| The auditors of the
company M/s S. M. Rehan & Co (Chartered Accountants) have retired and |
|
| being eligible,
offer themselves for re-appointment for the year 2004-2005. the Audit
Committee |
|
| has also
recommended their re-appointment. |
|
| STATEMENT OF
COMPLIANCE WITH THE CODE OF CORPORATE GOVERNANCE |
|
| The statement of
compliance with the Code of Corporate Governance is annexed with this report. |
|
| RECOMPOSITION OF
BOARD OF DIRECTORS |
|
| Subsequent to the
election of the directors in the Annual General Meeting held on December 31st |
|
| 2001 , Mr. Rubina
Jalali, Mr. Mumtaz AN Memon and Mr. H.A. Nqvi have resigned from the Board |
|
| and in their place
Mr. Nayyer Ahmed Jalali, Mr. Habibullah Sheikh and Mr. Kamil Khurshid Ahmed |
|
| were admitted
respectively to fill in the casual vacancy. The Board of Directors would like
to express |
|
| its gratitude for
the valuable services rendered by the outgoing directors and welcomes the
incoming |
|
| directors and hopes
that their diverse experience will further strengthen the Board. |
|
| ACKNOWLEDGEMENT |
|
| The Board of
Directors would like to place on record its appreciation to all our Patrons,
Dealers, |
|
| Suppliers and
Employees for their valuable help, uncompromising support and contribution to
the |
|
| Company. We are
also specially thankful to all our bankers for their continued support. |
|
| WORKER MANAGEMENT
RELATIONSHIP |
|
| Your management
would like to place on record the valuable contribution of all members of the |
|
| staff &
workers. The worker management relationship remained cordial throughout the
year which |
|
| resulted in the
smooth operation of your company. |
|
|
| The directors'
report for this year has been prepared in compliance with the requirements of |
|
| the Code and fully
describes the salient matters required to be disclosed. |
|
| The financial
statements of the Company were duly endorsed by CEO and CFO before approver |
|
| of the Board. |
|
| The directors, CEO
and executives do not hold any interest in the shares of the Company |
|
| other than that
disclosed in the pattern of shareholding. |
|
| The Company has
complied with all the corporate and financial reporting requirements of the |
|
| Code. |
|
| The Board had
formed an audit committee on September 14, 2002. It comprises three (3) |
|
| members including
the Chairman. |
|
| Since the formation
of the audit committee, its meetings were held at least once every quarter |
|
| prior to approval
of interim and final results of the Company and as required by the Code. The |
|
| terms of reference
of the committee had been formed and advised to the committee for |
|
| compliance. |
|
| The statutory
auditors of the Company have confirmed that they have been given a
satisfactory |
|
| rating under the
quality control review program of the Institute of Chartered Accountants of |
|
| Pakistan, that he
or his spouse and minor children do not hold shares of the Company and |
|
| that the firm is in
compliance with International Federation of Accountants (IFAC) guidelines |
|
| on code of ethics
as adopted by Institute of Chartered Accountants of Pakistan. |
|
| The statutory
auditors or the persons associated with them have not been appointed to
provide |
|
| other services
except in accordance with the listing regulations and the auditors have
confirmed |
|
| that they have
observed IFAC guidelines in this regard. |
|
| We confirm that all
other material principles contained in the Code have been complied with. |
|
|
| This statement is
being presented to comply with the Code of Corporate Governance contained |
|
| in the listing
regulations of Karachi, Lahore and Islamabad Stock Exchanges for the purpose
of |
|
| establishing a
framework of good governance, whereby a listed company is managed in
compliance |
|
| with the best
practices of corporate governance. |
|
| The Company has
applied the principles contained in the Code in the following manner: |
|
| 1 . The Company encourages representation of
independent non-executive directors and directors |
|
| representing
minority interests on its Board of Directors. At present the Board includes
two |
|
|
| (2 ) independent
non-executive directors and one director representing minority shareholders. |
|
| 2. The directors have confirmed that none of
them is serving as a director in more than ten listed |
|
| companies,
including this Company. |
|
|
| 3. All the resident directors of the Company
are registered as taxpayers and none of them has |
|
| defaulted in
payment of any loan to a banking company, a DPI or a NBFI or, being a member |
|
| of a stock
exchange, has been declared as a defaulter by that stock exchange. |
|
|
| 4. Casual vacancies occurring in the Board
were filled up by the directors as follows: |
|
| S# Names of
directors Date of
resignation Date of
appointment |
|
| 1 . Mr. H. A. Naqvi March 1 7, 2004 |
|
| 2. Mr. Kamil Khurshid Ahmed March 17, 2004 |
|
|
|
| 5. The Company has prepared a 'Statement of
Ethics and Business Practices' which has been |
|
| signed by all the
directors and employees of the Company. |
|
|
| 6. The Board has developed a vision/mission
statement, overall corporate strategy and significant |
|
| policies of the
Company. |
|
|
| 7. All the powers of the Board have been
duly exercised and decisions on material transactions, |
|
| including
appointment and determination of remuneration and terms and conditions of |
|
| employment of the
CEO and other executive directors, have been taken by the Board. |
|
|
| 8. The meetings of the Board were presided
over by the Chairman The Board met at least once |
|
| in every quarter.
Written notices of the Board meetings, along with agenda and working papers, |
|
| were circulated at
least seven days before the meetings. The minutes of the meetings were |
|
| appropriately
recorded and circulated. |
|
|
| 9. The Chief Executive of the Company has
discussed the duties and responsibilities of the |
|
| directors of the
Company. |
|
| 1 0. The Board had approve'd the appointment of
CFO & Company Secretary as well as the Internal |
|
| Auditor of the
company. |
|
|
| We have audited the
annexed balance sheet of PAK LEATHER CRAFTS LIMITED as at June 30, |
|
| 2004 and the
related profit and loss account, cash flow statement and statement of changes
in |
|
| equity together
with the notes forming part thereof, for the year then ended and we state
that we |
|
| have obtained all
the information and explanations which, to the best of our knowledge and
belief, |
|
| were necessary for
the purposes of our audit. |
|
| It is the
responsibility of the company's management to establish and maintain a system
of internal |
|
| control, and
prepare and present the above said statements in conformity with the approved |
|
| accounting
standards and the requirements of the Companies Ordinance, 1984. Our
responsibility |
|
| is to express an
opinion on these statements based on our audit. |
|
| We conducted our
audit in accordance with the auditing standards as applicable in Pakistan.
These |
|
| standards require
that we plan and perform the audit to obtain reasonable assurance about
whether |
|
| the above said
statements are free of any material misstatement. An audit includes
examining, on |
|
| a test basis,
evidence supporting the amounts and disclosures in the above said statements.
An |
|
| audit also includes
assessing the accounting policies and significant estimates made by
management, |
|
| as well as,
evaluating the overall presentation of the above said statements. We believe
that our |
|
| audit provides a
reasonable basis for our opinion and, after due verification, we report that: |
|
| (a) in cur opinion, proper books of accounts
have been kept by the company as required by |
|
| the Companies
Ordinance, 1984; |
|
| (b) in our opinion: |
|
| i) the balance sheet and profit and loss
account together with the notes thereon have |
|
| been drawn up in
conformity with the Companies Ordinance, 1 984, and are in agreement |
|
| with the books of
account and are further in accordance with accounting policies |
|
| consistently
applied; |
|
| ii) the expenditure incurred during the
year was for the purpose of the company's business: |
|
| and |
|
| iii) the business conducted, investments made
and the expenditure incurred during the |
|
| year were in
accordance with the objects of the company; |
|
| (c) in our opinion and to the best of our
information and according to the explanations given |
|
| to us, the balance
sheet, profit and loss account, cash flow statement and statement of |
|
| changes in equity
together with the notes forming part thereof conform with approved |
|
| accounting
standards as applicable in Pakistan, and give the information required by the |
|
| Companies
Ordinance, 1984 in the manner so required and respectively give a true and
fair |
|
| view of the state
of the company's affairs as at June 30, 2004 and of the profit, its cash flow |
|
| and changes in
equity for the year then ended; and |
|
| (d) in our opinion no Zakat was deductible
at source under the Zakat and Ushr Ordinance, 1980 |
|
| (XVIII of 1980). |
|
| We have reviewed
the Statement of Compliance with the best practices contained in the Code of |
|
| Corporate
Governance prepared by the Board of Directors of Pak Leather Crafts Limited
to comply |
|
| with the relevant
Listing Regulation of the Karachi, Lahore and islamabad Stock Exchange where |
|
| the company is
listed. |
|
| The responsibility
for compliance with the Code of Corporate Governance is that of the Board of |
|
| Directors of the
Company. Our responsibility is to review, to the extent where such compliance
can |
|
| be objectively
verified, whether the statement of compliance reflects the status of the
company's |
|
| compliance with the
provisions of the Code of Corporate Governance and report if it does not. Our |
|
| review is limited
primarily to inquiries of the company personnel and review of various
documents |
|
| prepared by the
company to comply with the Code. |
|
| As part of our
audit of financial statements we are required to obtain an understanding of
the |
|
| accounting and
internal control systems sufficient to plan the audit and develop an
effective audit |
|
| approach. We have
not carried out any special review of the internal control system to enable
us |
|
| to express an
opinion as to whether the Board's statement on internal control covers or
controls |
|
| and the
effectiveness of such internal controls. |
|
| Based on our
review, nothing has come to our attention, which causes us to believe that
the |
|
| Statement of
Compliance does not appropriately reflects the company's compliance, in all
material |
|
| respects, with the
best practices contained in the code of Corporate Governance effective as at |
|
| 30 June 2004. |
|
|
|
|
NOTE |
|
2003 |
|
|
|
|
(Rupees) |
(Rupees) |
|
| Sales |
|
17 |
385,947,282 |
238,257,464 |
|
| Cost of sales |
|
18 |
334,964,410 |
215,248,741 |
|
| Gross profit |
|
|
50,982,872 |
23,008,723 |
|
| OPERATING EXPENSES |
|
|
|
| Administrative |
|
19 |
8,636,316 |
8,121,598 |
|
| Selling |
|
20 |
22,644,883 |
15,932,923 |
|
|
|
|
31,281,199 |
24,054,521 |
|
| Operating
profrt/(loss) |
|
19,701,673 |
-1,045,798 |
|
| Other income |
|
21 |
76,753 |
777,140 |
|
|
|
19,778,426 |
-268,658 |
|
| Financial charges |
|
22 |
12,376,800 |
15,207,749 |
|
|
|
7,401,626 |
-15,476,407 |
|
| Other charges |
|
8.1 |
370,081 |
- |
|
| Profit/(loss)
before taxation |
|
7,031,545 |
-15,476,407 |
|
| Taxation |
|
|
|
| - Current year |
|
3,200,000 |
2,350,000 |
|
| - Prior year |
|
-336,797 |
-640,090 |
|
|
|
2,863,203 |
1,709,910 |
|
| Net Profit/floss)
after taxation |
|
4,168,342 |
-17,186,317 |
|
| Unappropriated
profit/(loss) b/f |
|
22,772,872 |
39,959,189 |
|
| Available for
Appropriations |
|
26,941,214 |
22,772,872 |
|
| Proposed dividend @
7.5% (2003 - Nil) |
|
2,550,000 |
- |
|
| Unappropriated
profit/floss) c/f |
|
24,391,214 |
22,772,872 |
|
| Earnings / (toss )
per share (Rupees) |
|
23 |
1.23 |
-5.06 |
|
|
|
|
NOTE |
2004 |
2003 |
|
|
|
|
(Rupees) |
(Rupees) |
|
| SHARE CAPITAL AND
RESERVES |
|
|
|
| Authorised capital |
|
|
50,000,000 |
50,000,000 |
|
| 5,000,000 Ordinary
Shares of Rs. 10/- each |
|
34,000,000 |
34,000,000 |
|
| Issued, subscribed
and paid up capital |
3 |
24,391,214 |
22,772,872 |
|
| Unappropriated
profit |
|
58,391,214 |
56,772,872 |
|
|
|
|
| LIABILITIES AGAINST
ASSETS |
|
- |
407,731 |
|
| SUBJECT TO FINANCE
LEASE |
|
4 |
31,115,082 |
31,115,082 |
|
| LOAN FROM DIRECTORS |
|
5 |
1,476,661 |
1,578,454 |
|
| DEFERRED
LIABILITIES |
|
6 |
|
|
| CURRENT LIABILITIES |
|
220,661,000 |
184,986,350 |
|
| Short term finances |
|
7 |
- |
869,531 |
|
| Current maturity of
long term liabilities |
4 |
65,551,678 |
83,746,829 |
|
| Creditors, accured
expenses & other libilities |
8 |
3,200,000 |
2,350,000 |
|
| Provision for
taxation |
|
2,550,000 |
- |
|
| Proposed Dividend |
|
291,962,678 |
271,952,710 |
|
|
- |
' |
|
| CONTINGENCIES AND
COMMITMENTS |
9 |
382,945,635 |
361,826,849 |
|
|
|
|
| FIXED ASSETS |
|
52,123,213 |
56,627,468 |
|
| Operating fixed
assets - tangible |
|
10 |
4,517,994 |
4,024,640 |
|
| CURRENT ASSETS |
|
269,648,550 |
271,1 71 ,28-1 |
|
| Stores and spares |
|
11 |
5,157,993 |
4,694,890 |
|
| Stock in trade |
|
12 |
9,378,475 |
5,950,035 |
|
| Trade debts |
|
13 |
30,188,215 |
16,372,932 |
|
| Advances, deposits
and prepayments |
14 |
11,931,195 |
2,985,603 |
|
| Other receivables |
|
15 |
330,822,422 |
305,199,381 |
|
| Cash and bank
balances |
|
16 |
382,945,635 |
361,826,849 |
|
|
|
|
|
|
|
|
|
|
|
|
RUPEES |
RUPEES |
RUPEES |
|
|
|
Issued Share |
Unappropriated |
|
|
|
|
Capital |
ProfiV(Loss) |
Total |
|
| Balance as at June
30, 2002 |
|
34,000,000 |
39,959,189 |
73,959,189 |
|
| Loss for the year
June 30, 2003 |
|
|
-17,186,317 |
-17,186,317 |
|
| Balance as at June
30, 2003 |
|
34,000,000 |
22,772,872 |
56,772,872 |
|
| Profit for the year
June 30, 2004 |
|
- |
4,168,342 |
4,168,342 |
|
| Proposed dividend |
|
- |
-2,550,000 |
-2,550,000 |
|
| Balance as at June
30, 2004 |
|
34,000,000 |
24,391,214 |
58,391,214 |
|
|
|
|
NOTE |
2004 |
2003 |
|
|
|
|
(Rupees) |
(Rupees) |
|
| Cash flows from
operating activities |
|
|
|
| Cash generated from
operations |
|
24 |
-6,045,554 |
27,295,413 |
|
| Financial charges
paid |
|
|
-14,862,517 |
-12,664,788 |
|
| Gratuity paid |
|
|
-257,108 |
-680,628 |
|
| Income Tax (paid) |
|
|
-3,177,612 |
-2,096,975 |
|
| Net cash flows from
operating activities |
|
-24,342,791 |
11,853,022 |
|
| Cash flows from
investing activities |
|
|
|
| Fixed capital
expenditure |
|
|
-1,129,005 |
-3,946,429 |
|
| Proceeds from
disposal of fixed assets |
|
20,000 |
1,556,000 |
|
| Net cash flows used
in investing activities |
|
-1,109,005 |
-2,390,429 |
|
| Cash flows from
financing activities |
|
|
|
| Long term loans
(repaid) / obtained |
|
|
- |
31,115,082 |
|
| Short term finances
(repaid) / obtained |
|
35,674,650 |
-36,913,650 |
|
| Repayment of
liabilities against assets subject to finance lease |
-1,277,262 |
-1,552,021 |
|
| Net cash flows
(used in) / from financing activities |
|
34,397,388 |
-7,350,589 |
|
| Net increase in
cash and cash equivalents |
|
8,945,592 |
2,112,004 |
|
| Cash and cash
equivlents at the beginning of the year |
|
2,985,603 |
873,599 |
|
| Cash and cash
equivlents at the end of the year |
16 |
11,931,195 |
2,985,603 |
|
|
| Stock in trade |
|
| These are valued at
the lower of average cost and net realisable value except goods |
|
| in transit which
are stated at invoice value plus other charges incurred thereon. Cost |
|
| of work in process
and finished goods comprises direct material and labour together |
|
| with production
overheads. |
|
| Net realisable
value is calculated on the estimated selling price in the ordinary course |
|
| of business less
cost of completion and cost necessarily to be incurred in order to |
|
| make the sale. |
|
| Taxation |
|
| Current |
|
| Provision for
current taxation is based on taxable income at current tax rates after |
|
| taking into account
tax rebates and tax credits available, if any. |
|
| Deferred |
|
| The Company account
for deferred taxation arising on all temporary material timing |
|
| dffferences using
the [[ability method. |
|
| Borrowing costs |
|
| Borrowing costs are
recongnised as an expense in the period in which they are |
|
| incurred, except to
the extent that they are directly attributable to the construction of |
|
| a qualifying asset
in which case they are capitalised as part of the cost of that asset. |
|
| Trade and other
payables |
|
| Liabilities for
trade and other payables 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
Company. |
|
| Foreign currency
translation |
|
| Transactions in
foreign currencies are accounted for at the rate prevailing on the date |
|
| of transaction.
Monertary assets and liabilities denominated in foreign currencies are |
|
| translated into
Pak. Rupees equivalents using the exchange rates ruling at the balance |
|
| sheet date.
Exchange differences are included in profit and loss account currently. |
|
| Revenue recognition |
|
| Sales are
recognised on despatch of goods to customers. Income on investment if |
|
| any, is recorded on
accrual basis. |
|
| Staff Retirement
benefits |
|
| The Company
maintains unfunded gratuity scheme for its workers and make annual |
|
| provision for
gratuity in accordance with the applicable labour laws. |
|
| The company
maintains approved provident fund scheme (defined contribution plan) |
|
| for its officers
and executives who are eligible for the plan. Equal contributions thereto |
|
| are made by the
company and the employees in accordance with the funds rules. |
|
| Financial
instruments |
|
| All financial
assets and liabilities are recongnised at the time when the Company |
|
| becomes party to
the contractual provisions of the instrument. Any gain or loss on the |
|
| recognition and
derecognition of the financial assets and liabilities is included in the |
|
| net profit and loss
for the period in which it arises. |
|
|
| 1 . STATUS AND ACTIVITIES |
|
| The Company is a
public limited company incorporated in Pakistan under the Companies |
|
| Ordinance, 1984 and
is quoted on the Karachi, Lahore and Islamabad Stock Exchanges. |
|
| The principal
activity of the Company is Leather tanning, Manufacturing of Leather Garments |
|
| and export of
Leather and Leather Garments. |
|
| 2. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES |
|
| 2.1 Basis of preparation |
|
| These financial
statements have been prepared in accordance with approved accounting |
|
| standards as
applicable in Pakistan and the requirements of Companies Ordinance, |
|
| 1984. Approved
accounting standards comprise of such International Accounting |
|
| Standards as
notified under the provisions of the Companies Ordinance, 1984. |
|
| Wherever, the
requirements of the Companies Ordinance, 1984 or directives issued |
|
| by the Securities
and Exchange Commission of Pakistan differ with the requirements |
|
| of these standards,
the requirements of Companies Ordinance, 1984 or the requirements |
|
| of the said
directives take precedence. |
|
| 2.2 Accounting convention |
|
| These financial
statements have been prepared under the historical cost convention. |
|
| 2.3 Trade debts |
|
