FINANCIAL Companies Ordinance, 1984. In case requirements differ,

FINANCIAL STATEMENTS  STATUS AND NATURE OF BUSINESSThe Company was incorporated inPakistan on February 28, 1981 as a public limited company with its Registered Officesituated at 35-Darulaman Housing Society, Block 7/8, Shahra-e-Faisal, Karachi,Sindh. Its shares are quoted on Pakistan Stock Exchange. It is principallyengaged in production and sale of cement.2. BASIS OFPREPARATION2.1 Statement ofcompliance During the year, the Companies Act2017 (the Act) has been promulgated, however, Securities and ExchangeCommission of Pakistan (SECP) vide its circular no. 17 of 2017 dated July 20,2017 communicated Commission’s decision that the Companies whose financial yearcloses on or before Jun 30, 2017 shall prepare their financial statements inaccordance with the provisions of the repealed Companies Ordinance,1984.Accordingly, these financial statements have been prepared in accordancewith approved accounting standards as applicable in Pakistan.

Approvedaccounting standards comprise of such International Financial ReportingStandards (IFRS) issued by the International Accounting Standards Board as arenotified under the repealed Companies Ordinance, 1984, provisions of anddirectives issued under the repealed Companies Ordinance, 1984. In caserequirements differ, the provisions of or directives under the CompaniesOrdinance, 1984 prevail. 2.2 Basis of measurement These financial statements are prepared under thehistorical cost convention except short investments which are measure at fairvalue. 2.3 Functional andpresentation currency These financial statements are presented inPakistani Rupees which is the Company’s functional and presentation currency. 2.4 Use of estimatesand judgmentsThe preparation of financialstatements in conformity with approved financial reporting standards, asapplicable in Pakistan, requires management to make judgments, estimates andassumptions that affect the application of policies and the reported amounts ofassets, liabilities, income and expenses.

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The estimates and associatedassumptions are based on historical experience and various other factors thatare believed to be reasonable under the circumstances, the results of whichform the basis of making judgments about the carrying values of assets andliabilities that are not readily apparent from other sources. Actual resultsmay differ from these estimates. The estimates and underlying assumptions arereviewed on an ongoing basis. Revisions to accounting estimates are recognizedin the period in which the estimate is revised if the revision affects onlythat period or in the period of the revision and future periods if the revisionaffects both current and future periods. Information about judgments made bythe management in the application of approved accounting standards, asapplicable in Pakistan, that have significant effect on the financialstatements and estimates and assumptions with a significant risk of material adjustmentin the future periods are included in following notes: – Useful lives and residual values of property, plant and equipment(note 3.1) – Provision for slow moving and obsoletestores and spares (note 3.4) – Provision for doubtful debts (note 3.

8) – Provision for taxation (note 3.10 THESE ARE SOME STANDERS WHICH WE ARE TRYING TOIMPLIMENTATION ü  IAS   16      Property Plant and Equipment ü  IAS   23      Borrowing cost ü  IAS    2       Inventoriesü  IAS    1       Presentationof Financial Statementsü  IFRS 15      Revenue from Contact with the Customerü  IAS   38      Intangible Assets      IAS 16 PROPERTY PLANT AND EQUIPMENT   Impairment                                    The carrying amount of all assets not carriedat fair value, is reviewed at each balance sheet date to determine whetherthere is any indication of impairment. If any such indication exists, therecoverable amount of such asset is estimated. Impairment loss is recognized inprofit and loss account whenever carrying amount of an assets exceeds itsrecoverable amount.                                                                                               2017                                2016                                                                                                                              Note –––––– Rupees in ‘000’ –––––– 8 PROPERTY, PLANT ANDEQUIPMENTS Operating assets                                                                  8.1    1,793,514            1,866,838Capital work in progress                                                     8.2         31,578                 806                                                                                                                                                                         .

                                                                                                    1,825,092            1 ,867,644  IAS 23 BORROWING COST Borrowing cost                           Borrowing cost incurred upto the date thequalifying asset is ready for use and that is directly attributable to theacquisition or construction of related property, plant and equipment iscapitalized as part of cost of the relevant asset. All other mark-up, interestand other related charges are charged to income in the period in which theyoccur  IAS 1 PRESENTATION OF FINANCIAL STATEMENT Fair valuethrough                           Financial assets at fair value through profitor loss are financial assets held for trading. A financial asset is classifiedin this category if acquired principally for the purpose of selling in theshort-term. Derivatives are also categorized as held for trading unless theyare designated as hedges.

Assets in this category are classified as currentassets.Offsetting                                         Financial assets and liabilities are offsetwhen the Company has a legally enforceable right to offset and intends tosettle either on a net basis or to realize the asset and settle liabilitysimultaneously.   38 INTANGIBLE ASSETS  Research and development       Costs Research and development costs arecharged to income as and when incurred, except for certain development costswhich are recognized as intangible assets when it is probable that thedevelopment project will be a success and certain criteria, includingcommercial and technological feasibility have been met. IAS 15 REVENUE FROM THE CONTACT WITH CUSTOMERS Revenuerecognition                Revenue arising from the sale ofgoods is recognized when all of the following criteria have been satisfied: – the company has transferred to thecustomer the significant risks and rewards of ownership; -the Company retains neither continuingmanagerial involvement to the degree usually associated with ownership noreffective control over the goods sold; – the revenues amount  can be easily measured reliably; – it is probable that the economicbenefits associated with the transaction will flow to the company and; – The costs incurred or to be incurred inrespect of the transaction can be measured reliably.

 The Company recognizes revenue from the saleof goods (including export sales) on despatch of goods to its customers. Return on bank deposits is recognized on a timeproportion basis on the principal amount outstanding and at the rateapplicable. Dividend income is recognized whenthe right to receive the dividend is established. i.

e. the book closure date ofthe investee company declaring the dividend.

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