FINANCIAL as applicable in Pakistan. Approved accounting standards comprise

FINANCIAL STATEMENTS

 

 STATUS AND 
NATURE OF BUSINESS

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The Company was incorporated in
Pakistan on February 28, 1981 as a public limited company with its Registered Office
situated at 35-Darulaman Housing Society, Block 7/8, Shahra-e-Faisal, Karachi,
Sindh. Its shares are quoted on Pakistan Stock Exchange. It is principally
engaged in production and sale of cement.

2. BASIS OF
PREPARATION

2.1 Statement of
compliance

During the year, the Companies Act
2017 (the Act) has been promulgated, however, Securities and Exchange
Commission of Pakistan (SECP) vide its circular no. 17 of 2017 dated July 20,
2017 communicated Commission’s decision that the Companies whose financial year
closes on or before Jun 30, 2017 shall prepare their financial statements in
accordance with the provisions of the repealed Companies Ordinance,
1984.Accordingly, these financial statements have been prepared in accordance
with approved accounting standards as applicable in Pakistan. Approved
accounting standards comprise of such International Financial Reporting
Standards (IFRS) issued by the International Accounting Standards Board as are
notified under the repealed Companies Ordinance, 1984, provisions of and
directives issued under the repealed Companies Ordinance, 1984. In case
requirements differ, the provisions of or directives under the Companies
Ordinance, 1984 prevail.

 2.2 Basis of measurement

 These financial statements are prepared under the
historical cost convention except short investments which are measure at fair
value.

2.3 Functional and
presentation currency

 These financial statements are presented in
Pakistani Rupees which is the Company’s functional and presentation currency.

2.4 Use of estimates
and judgments

The preparation of financial
statements in conformity with approved financial reporting standards, as
applicable in Pakistan, requires management to make judgments, estimates and
assumptions that affect the application of policies and the reported amounts of
assets, liabilities, income and expenses. The estimates and associated
assumptions are based on historical experience and various other factors that
are believed to be reasonable under the circumstances, the results of which
form the basis of making judgments about the carrying values of assets and
liabilities that are not readily apparent from other sources. Actual results
may differ from these estimates. The estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting estimates are recognized
in the period in which the estimate is revised if the revision affects only
that period or in the period of the revision and future periods if the revision
affects both current and future periods. Information about judgments made by
the management in the application of approved accounting standards, as
applicable in Pakistan, that have significant effect on the financial
statements and estimates and assumptions with a significant risk of material adjustment
in 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 obsolete
stores 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 TO
IMPLIMENTATION

 

ü  IAS   16      Property Plant and Equipment

ü  IAS   23      Borrowing cost

ü  IAS    2       Inventories

ü  IAS    1       Presentation
of Financial Statements

ü  IFRS 15      Revenue from Contact with the Customer

ü  IAS   38      Intangible Assets

 

 

 

 

 

IAS 16 PROPERTY PLANT AND EQUIPMENT

 

 

 

Impairment                                  

 The carrying amount of all assets not carried
at fair value, is reviewed at each balance sheet date to determine whether
there is any indication of impairment. If any such indication exists, the
recoverable amount of such asset is estimated. Impairment loss is recognized in
profit and loss account whenever carrying amount of an assets exceeds its
recoverable amount.

 

                                                                                           
   2017                                2016                                          

                                                   
                                 Note –––––– Rupees in ‘000’ –––––– 8

PROPERTY, PLANT AND
EQUIPMENTS

Operating assets                                                                  8.1    
1,793,514            1,866,838

Capital 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 the
qualifying asset is ready for use and that is directly attributable to the
acquisition or construction of related property, plant and equipment is
capitalized as part of cost of the relevant asset. All other mark-up, interest
and other related charges are charged to income in the period in which they
occur

 

 

IAS 1 PRESENTATION OF FINANCIAL STATEMENT

 

Fair value
through                         

 Financial assets at fair value through profit
or loss are financial assets held for trading. A financial asset is classified
in this category if acquired principally for the purpose of selling in the
short-term. Derivatives are also categorized as held for trading unless they
are designated as hedges. Assets in this category are classified as current
assets.

Offsetting                                       

 Financial assets and liabilities are offset
when the Company has a legally enforceable right to offset and intends to
settle either on a net basis or to realize the asset and settle liability
simultaneously.

 

 

 

38 INTANGIBLE ASSETS

 

Research and development     

 Costs Research and development costs are
charged to income as and when incurred, except for certain development costs
which are recognized as intangible assets when it is probable that the
development project will be a success and certain criteria, including
commercial and technological feasibility have been met.

 

IAS 15 REVENUE FROM THE CONTACT WITH CUSTOMERS

 

Revenue
recognition               

Revenue arising from the sale of
goods is recognized when all of the following criteria have been satisfied:

– the company has transferred to the
customer the significant risks and rewards of ownership;

 -the Company retains neither continuing
managerial involvement to the degree usually associated with ownership nor
effective control over the goods sold;

 – the revenues amount  can be easily measured reliably;

– it is probable that the economic
benefits associated with the transaction will flow to the company and;

 – The costs incurred or to be incurred in
respect of the transaction can be measured reliably.

 The Company recognizes revenue from the sale
of goods (including export sales) on despatch of goods to its customers.

 Return on bank deposits is recognized on a time
proportion basis on the principal amount outstanding and at the rate
applicable.

Dividend income is recognized when
the right to receive the dividend is established. i.e. the book closure date of
the investee company declaring the dividend.

x

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