LUCKY ONE (PRIVATE) LIMITED

Transcription

1 AUDTED FNANCAL STATEMENTS LUCKY ONE (PRVATE) LMTED AS AT JUNE 30, 2015 ",. ~ RAHMAN SARFARAZ RAHM QBAL RAFQ CHARTERED ACCOUNTANTS "

2 Ra huia n Sa rfa L1 z R2 h! [11 q b ~1Ra flq CHARTERED ACCOUNTANTS Plot No Block-A, S.v1.C.H.S. Karachi-74400, PAKSTAN. Tel. No. :(021) Fax No.: (02;) E-~\/:8i! : i~fc@rsrl!".com Website: Orner Offices at Lahore - isiamabad AUDTORS' REPORT TO THE rviervibers We have audited the annexed balancesheet of Lucky One (Private) Limited ("the Company") ~s at 30 June 2015 and the related profit and loss account, statement of comprehensive income, 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 necessaryfor the purposes of our audit. t 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 requirementsof the Companies Ordinance, Our responsibility is to express an opinion on these statements based on our audit. We conducted our audit in accordancewith 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 presentationof 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 our opinion, proper books of accounts have been kept by the Company as required by the Companies Ordinance, 1984: (b) in our opinion: (i) (ii) (iii) the balance sheet and profit and loss account together with the notes thereon have been drawn up in conformity with the Companies Ordinance, 1984, and are in agreement with the books of accounts and are further in accordance with accounting policies consistently applied; the expenditure incurred during the year was for the purpose of the Company's business; and 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, statement of comprehensive income, casf flow statement and statement of changes in equity together with the notes forming part thereof conform with approved ~ccounti.ngstandards ~s applicable in Pakist~n and give the.inforr1}~tion required by the Companies Ordinance, 1984, n the manner so required and respectively give a true and fair view of the state of the Company's affairs as at 30 June 2015 and of the profit'jtotal comprehensive income, cash flows and changes in equity for the year then ended; and (d) in our opinion, no zakat was deductibleat source under the Zakat and Ushr Ordinance, A member of Russet! Bedford tnternational A global netwrok of independent accountancy firms. business consultanrs and speciuhst l~g,,1 advisers. t1~ ~,W f'f::;-t \ Rahman Sarfaraz Rahim qbal Rafiq Chartered Accountants Engagement Partner: Muhammad Rafiq Dossani

3 ,. Lucky One (Privata] Limited Balance Sheet. As at June 30, 2015 Note Rupees---_ ASSETS Non-Current Assets Long term nvestments 4 653, ,284 Current Assets Supervision fees receivable Advance tax Cash and bank balances EQUTY AND LABLTES SHARE CAPTAL AND RESERVES 5 6 9,720,127 6,892,545 9,814,592 4,032,196 1,892,471 2,173,366 22,080,260 13,688,391 Authorized share capital of 5,000,000 (2014: 5,000,000) Ordinary share of Rs. 100/==each 500,000, ,000,000 ssued, subscribed and paid up capital 30 ordinary shares of Rs. 100 each fully paid in cash 3,000 3,000 Unappropriated profit 884, ,381 Unrealized appreciation on re-measurement of investments classified as 'available for sale' Current Liabilities Trade and other payables Project accounts Contingencies and commitments 160,884 1,048, ,237, ,794,765 21,031, ,080,260 98, ,479 13,688,391 The annexed notes from 1 to 15 form.an integral part of these financial statements. DRE

4 Lucky vr". One (Private) y,""",-, J ~imited...,... '" Profit and Loss Account For the year ended June 30, 2015 Note Rupees Revenue 10 2,827,582 4,174,047 Operating expenses: Administrative expenses 11 (4,323,177) (5,794,989) Operating loss (1,495,595) (1,620,942) Finance cost (101,329) (97,237) Other income 12 1,892,470 2,173,366 1,791,141 2,076,129 Profit before taxation 295, ,187 Taxation - Current tax (97'~30)1 (154,764) - Prior year (110,338) (97,530) (265,102) Profit after taxation 198, ,086 The annexed notes from 1 to 15 form an integral part of these financial statements.

5 '. Lucky One (Private) Limited Statement of Comprehensive ncome for the year ended June 30, Rupees Profit after taxation 198, ,086 Other comprehensive income: -Unrealized appreciation during the year on re-measurement of investments classified as 'available for sale' 62,786 42,034 Total comprehensive income for the year 260, ,120 The annexed notes from 1 to 15 form an integral part of these financial statements.

6 Lucky One (Private) L!mfted Statement of Changes in Equity FOithe year ended June 30, 2015 Share Capital Unappropriated Profit Unrealized appreciation during the year on remeasurement of investments classified as 'available for sale' Rupees Total Balance as at July 01, , ,295 56, ,359 Total comprehensive income for the year Profit after taxation Other comprehensive income 190, , ,034 42, ,086 42, ,120 Balance as at June 30, , ,381 98, ,479 Total comprehensive income for the year Profit after taxation Other comprehensive income 198, , ,786 62, ,016 62, ,802 Balance as at June 30, , , ,884 1,048,281 The annexed notes from 1 to 15 form an integral part of these financial statements.

7 Lucky One (Private) Llmited Statement of Cash Flows For the year ended June 30, 2015 CASH FLOWS FROM OPERATNG ACTVTES ---- Rupees ---- Profit before taxation 295, ,187 Adjustments for non-cash charges and other items: Finance cost 101,329 97, , ,424 Changes in working capital: ncrease in supervision fees receivable (2,827,581 ) (4,174,048) (Decrease) / ncrease in trade and others payable (51, ,215 (2,879,128) (3,675,833) Cashflows used in operations Taxes paid Net cashflows used in operating activities (2,482,253) (3,123,409) (5,937,159) (1,030,825) (8,419,412) (4,154,234) CASH FLOWS FROM NVESTNG Long term investment ACTVTES CASH FLOWS FROM FNANCNG ACTVTES Project accounts Finance cost paid Net (decrease) / increase in cash and cash equivalents 8,239,847 5,298,245 (101,329) '97,237) 8,138,518 5,201,008 (280,894) 1,046,773 Cash and cash equivalents at the beginning of the year 2,173,365 1,126,592 Cash and cash equivalents at the end of the year 1,892,471 2,173,365 The annexed notes from 1 to 15 form an integral part of these financial statements.

8 Lucky One' (Private) Limited Notes to the financial statement For the year ended June 30, STATUS AND NATURE OF BUSNESS 1.1 Lucky One (Private) Limited is a company incorporated in Pakistan under the Companies Ordinance t was ncorporated on 24 February 201O.The company's registered office is located at LA-2/B Block 21 Rashid Minhas road Federal "B" Area Karachi Pakistan. The principal activity of the company is to engage in activities of supervising building, constructing, managing,project management and promoting real estate for and on behalf of group companies i.e. Lucky Landmark (Private) Limited and Lucky Textile Mills Limited and to carry on similar work for other customers. The company is a subsidiary of YB Holdings (Private) Limited. 1.2 The company is currently engaged under an agreement with Lucky Landmark (Private) Limited and Lucky Textile Mills Limited (its associatesj.for the supervision of activities related to construction of mega mall and luxurious residential apartments(the project) on their commercialized land situated adjacent to each other owned by the said associated companies. Under the terms of agreement, funds for meeting the requirements of the project are provided by the associated companies, and all payments related to the construction of the project are made by the company for and on, their behalf. The Company has for this purpose also entered into an agreement with a construction company that has been given the task of construction of the project till its completion under its supervision. 1.3 Scheme of Arrangement - Demerger of Real Estate Undertaking from Fazal Textile Mills Limited and its Merger with Lucky Landmark (Pvt) Ltd A Petition No. 41 of 2014 has been filed with the High Court of Sindh at Karachi for De-merger of Real Estate Undertaking (The Lucky One Project) owned by Fazal Textile Mills Ltd and then its merger with Lucky Landmark (Pvt) Ltd under a Scheme of Arrangement in December The said Scheme is sanctioned by the Court through its order dated June 4, 2015 and pursuant to this sanction the Real Estate Undertaking has Jeen taken over by Lucky Landmark (Pvt) Ltd from Fazal Textile Mills Ltd. 2. BASS OF PREPARATON 2.1 Statement of compliance These financial statements have been prepared in accordance with the Accounting and Financial reporting standards for Small Sized Entities as applicable in Pakistan and the requirements of the Companies Ordinance, n case requirements differ, the provisions or directives of the Companies Ordinance, 1984 shall prevail. 2.2 Basis of measurement These financial statements have been prepared under the historical cost convention except as other wise stated in the respective policies and notes given hereunder. 2.3 Functional and presentation currency tems include in the financial statements are measured using the currency of the primary economic environment in which the company operates. The 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 the Accounting and Financial Reporting staodaros for Small-Sized Entities issued by the nstitute of Chartered Accountants of Pakistan requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and 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 the judgments about carrying values of assets and iiabiiitie:sthai are not readlly apparent from other o,0uice:s.actual \E:su:tsmay differ from these estimates.

9 The estimates and underlying assumptions are r~viewed on an ongoing basis. Revisi'ons to accounting estimates' are recognized in the period in which the estimates are 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. Judgments made by management in the application of approved Accounting Standards, as applicable in Pakistan, that have significant effect on the financial statements and estimates with a significant risk of material judgment in the future periods are as mentioned in accounting policies. 3. SUMMARY OF SGNFCANT ACCOUNTNG POLCES The significant accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented. 3.1 Share Capital Ordinary shares are classified as equity and recognized at their face value. ncremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. 3.2 Borrowings Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently carried at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the profit and loss account over the period of the borrowings using the effective interest rate method. Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date. 3.3 Staff Retirement benefits The Company is operating a contributory provident fund scheme. The scheme is applicable to all permanent employees of the Company. Monthly contributions are made by the Company and 8.33% per month of the basic salary. From June 2014 the company has stopped Contributing in Provident fund and the Fund has eventually been closed,. all employees contributions till that date have been paid back to employees. Now from that date the Company Started Gratuity Scheme in place of Provident Fund. Actuarial Valuation have been performed by Actuaries to know the Cost till June 30, 2014, as a result of which Gratuity Cost is Recognised in Books till June 30, 2014 as Past Service Cost. Since Next Valuation is Not Yet Carried, Therefore Current Service Cost for the Period from July 2014 to June 2015 is not Yet Booked. 3.4 Provisions Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events, it is probable that an out flow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of obligation. 3.5 Taxation ncome tax expense comprises current and deferred tax. ncome tax expense is recognized in the profit and loss account, except to the extent that it relates to items recognized directly in comprehensive income or below equity, in which case it is recognized in comprehensive income or below equity respectively. Current tax Provision for current taxation is based on taxable income at the current tax rates of taxation after taking into account tax credit and rebates available, if any. The charge for the current tax also includes adjustments where necessary, relating to prior years which arise from assessment framedlfinalized during the year.

10 Deferred tex Deferred income tax is recognized using the balance sheet liability method on all temporary differenc;es arising between the carrying amount of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are recognized for all taxable temporary differences. A deferred tax assets are recognized only to the extent that it is probable that future taxable profits will be available against which deductible temporary differences can be utilized. Deferred tax is calculated at the rates that are expected to apply to the period when the differences reverse based on the tax rates that have been enacted substantively enacted by the reporting date. Deferred tax is charged or credited to income except in the case of items credited or charged to equity in which case it is included in equity. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. 3.6 Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairrnent losses except freehold land and capital work in progress, which are stated at cost. Cost comprises acquisition and other directly attributable costs. Exchange differences in respect of foreign currency transactions relating to fixed assets are incorporated in the cost of relevant assets. Capital work - in - progress which is stated at cost less accumulated impairment losses (if any). All expenditures connected to the specific assets incurred during installation and construction period are carried under capital work - in - progress. These are transferred to specified assets as and when assets are available for use. Subsequent costs are included in the asset's carrying amounts or recognized as a separate assets, as appropriate, only when it is probable that future benefits associated with the items will flow to the Group and the cost of the item can be measured reliably. An assets carrying amount is written down immediately to its recoverable amount if the carrying amount is greater than the recoverable amount. Depreciation is.charged to income on all property, plant and equipment using straight line method. Depreciation on additions to property, plant and equipment is charged from the month in which an item is put to use while no depreciation is charged for the month in which the item is derecognized /disposed off. Gains and losses on disposal of fixed assets are included in income currently. Maintenance and repairs are charged to profit and loss account as and when incurred. Major renewals and improvements are capitalized and the assets so replaced, if any, are written off. Gains and losses on disposal of assets, if any, are included in profit and loss account currently. 3.7 Stores, spares & loose tools Stores, spares and loose tools are valued at weighted average cost except for items in transit which are stated at cost incurred up to the. balance sheet date. Obsolete and used items are recorded at nil value. Value of items is reviewed at each balance sheet date to record provision for any slow moving items. 3.8 nventory work in process nventory in process comprising of construction material are stated at cost except for stock in transit which is valued at invoice price and related expenses incurred upto the balance sheet date. Cost includes applicable purchase cost and proportionate conversion cost. Cost is determined using weighted average method. 3.9 Advances, deposits and other receivables Trade debts and other receivables are stated at original invoice amount less provision for doubtful debts, if any. Provision for doubtful debts/receivables is based on the management's assessment of customer's outstanding balances and creditworthiness. Bad debts are written-off when identified.

11 3.10 Cash and cash equivalents' Cash and cash equivalents are carried in the balance sheet at cost. For the purpose of cash flow statement, cash and cash equivalents comprise cash in hand, cash with banks on current, saving and deposit accounts and short term running finance Foreign Exchange transactions Foreign currency transactions are recognized at the exchange rate applicable at the transaction date. Monetary assets and liabilities are translated into rupees using exchange rates applicable at the balance sheet date. Gains and losses on settlement and translation at the year end are recognized in the income statement Revenue Revenue is recognized when it is probable that the economic benefits associated with the transaction will flow to the company and the amount of revenue and the associated cost incurred or to be incurred can be measured reliably, on the following basis: (i) (ii) revenue from supervision of the project is accrued on billing basis from the sub-contractors; interest income is recognized on a time proportion basis taking into account the principal outstanding and the interest rate applicable Borrowing Costs Borrowing costs are recognized as an expense in the period in which these are incurred except to the extent of borrowing cost that is directly attributable to the acquisition, construction or production of a qualifying asset. Such borrowing costs, if any are capitalized as part of the cost of the asset mpairment mpairment of financial assets The Company assesses at the end of each reporting period whether there is objective evidence that a financial asset or a group of financial assets is impaired. A provision for impairment in trade debts and other receivables is made when there is objective evidence that the Company will not be able to collect all amounts due according to original terms of receivables. mpairment of non-financial assets Assets that are subject to depreciation/amortization are reviewed at each balance sheet date to identify circumstances indicating occurrence of impairment loss or reversal of previous impairment losses. An impairment loss is recognized for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less cost to sale and value in use. Reversal of impairment loss is restricted to the original cost of the asset Financial nstruments Financial assets The Company classifies its financial assets in the following categories: at fair value through profit or loss, held to maturity, loans and receivables, and available-for-sale. The classification depends on the purpose fo~ which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition. a) Financial assets at fair value through profit or loss 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 uniess they are designated as hedges. Assets in this category are classified as current assets.

12 b) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than 12 months after the end of the reporting period. Tnese are classified as non-current assets. The Company's loans and receivables comprise 'trade debts', 'short term loans', 'trade deposits and other receivables' and 'cash and cash equivalents' in the balance sheet. c) Held to maturity financial assets Held to maturity financial assets are non-derivative financial assets with fixed or determinable payments and fixed maturity with a positive intention and ability to hold to maturity. There were no held to maturity financial assets at the reporting date. d) Available-for-sale financial assets Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of the other categories. They are included in non-current assets unless the investment matures or management intends to dispose off it within 12 months of the end of the reporting date. Recognition and measurement Regular purchases and sales of financial assets are recognized on the trade date - the date on which the Company commits to purchase or sell the asset. nvestments are initially recognized at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognized at fair value, and transaction costs are expensed in the profit and loss account. Financial assets are derecognized when the rights to receive cash flows from the investments have expired or have been transferred and the Company has transferred substantially all risks and rewards of ownership. Available-for-sale financial assets and financial assets at fair value through profit or loss are subsequently carried at fair value. Loans and receivables are subsequently carried at amortized cost using the! effective interest method. Gains or losses arising from changes in the fair value of the 'financial assets at fair value through profit or loss' category are presented in the profit and loss account within income / expenses in the period in which they arise. Dividend income from financial assets at fair value through profit or loss is recognized in the profit and loss account as part of operating income when the Company's right to receive payments is established. Changes in fair value of monetary and non-monetary securities classified as available-for-sale are recognized in other comprehensive income. When securities classified as available-for-sale are sold or impaired, the accumulated fair value adjustments recognized in equity are included in the profit and loss account as 'gains and losses from investment securities'. nterest on available-for-sale securities calculated using the effective interest method is recognized in the profit and loss account as part of other income. Dividends on available for sale equity instruments are recognized in the profit and loss account as part of other income when the Company's right to receive payments is established. Financial liabilities Financial liabilities are classified according to the substance of the contractual agreements entered into. Significant financial liabilities are long term loans, liabilities against assets subject to finance lease, short term finances utilized under mark-up arrangements, creditors, accrued and other liabilities and unclaimed dividends. All financial liabilities are initially recognized at cost, which is the fair value of the consideration received at initial recognition. After initial recognition financial liabilities held for trading are carried at fair value and all other financial liabilities are measured at amortized cost Offsetting offinancial assets and financial liabilities ~~ Financial assets and liabilities are offset and the net amount reported in the balance sheet when there s a legally enforceable right to offset the recognized amounts and there is an intention to settle either on a net basis, or realize the asset and settle the liability simultaneously.

13 4. LONG TERM NVESTMENTS i4 Rupees Available for sale Cost of investment 492, ,186 Unrealised gain - At beginning of the year 98,098 56,064 - Arising during the year 62,786 42, ,884 98, , , These represents investment in Units of JS ncome Fund an open end fund. 5. ADVANCE TAX These represents advance tax deducted at source under section 151, 236, 148, 231A, 234 of ncome Tax Ordinance 2001 to be claimed from ncome Tax Department. 6. CASH AND BANK BALANCES Note Rupees Cash at bank 6.1 1,892,471 2,173, These represents cash in deposit account generated by the company from the deposits of jts associated companies. 7. TRADE AND OTHER PAYABLES Note Rupees Salaries and wages payable 539, ,231 Other payable 600, ,000 Provision for taxation 97, ,764 1,237,214 1,345, PROJECT ACCOUNTS Amount received -From Associated Companies Lucky Landmark (Private) Limited Lucky Textile Mills Limited -Other Sources Y.B Pakistan Limited Y.B Holdings (Private) Limited Creditors, accrued and other payables Less: Amount utilized Less: Amount unutilized ,055,286,691 1,487,686,691 1,602,354,972 1,092,652,886 3,657,641,663 2,580,339,577 98,000,000 85,000,000 20,000, ,681, ,081, ,681, ,081,712 3,940,323,621 2,769,421,289 (3,888,050,550) (2,757,017,786) (32,478,306) (848,585) 19,794,765 11,554,918

14 This balance represents the amount provided by the associated companies and expended over the period of construction to date and payments related to the construction of the project are made by the company for and on behalf of the associated companies as per three party agreement. The Project is to be completed in two phases i.e. the construction and completion of Commercial Mall (herein after referred to as 'phase one') whereas second phase is Construction of Housing Towers. The above mentioned balances have been utilized in the construction work of Commercial Mall. The construction of project was commenced on 01 May The phase one i.e. construction of structure of Commercial Mall is ninty eight percent completed and the project is to be completed by 31 March The estimated cost of phase one is Rs. 4.5 billion and Cost ncurred till June 30, 2015 was Rs Billion. (2014 : billion ). Paragon Constructors (Private) Limited who are supervising the Construction of the Project have also charged supervision fee at four percent of total Cost ncurred till December 2014, which afterwards agreed at Rupees 3.5 Million per month. Total Supervision Fee Paid to Paragon Constructors Till June 30, 2015 was Rs million (2014: million). 8.1 Creditors, accrued and other payables Note Rupees Payable to Suppliers?',.:170,121 ~903,302 Contractors 1,853,319 6,670,802 50,023,440 63,574,104 Accrued expenses and other payables Advance from customers (,,68,500,000 ~700,000 Retention and integrity money ~63,992 ~412,332 Salaries and wages payable 097,640 ~95,550 Provident fund payable ~8,817 ~89,851 Gratuity payable t"":4;,; 03,000 ~28,846 Tax deducted at source (2,628,457 ~g14,734 Tax payable ~,O11 ~2,011 Other payables 804,601, M,284 rt,j;4,658,518 r~0,5b7,608 ("' nq4,ob1, These represent advances received from parties for appropriation of apartments and shops to be constructed under the project. This represents retention money withheld, out of payments to the sub-contractor for construction of the of contract amount, which shall be settled against final bills. The company maintains, on behalf of its associated companies, an unrecognized Provident fund scheme for the employees working on the project. The fund bears 8.33% of the basic salary on behalf of the employees and similar amount is deducted from the monthly salary of the employees. Now this provident fund scheme is closed with effect from June 2014 and all employee Contributions are paid back to employees. The Company has established an unrecognised Gratuity Fund Scheme in place of Provident Fund Scheme. An Actuarial Valuation has been carried, as a result of which company recognises the Past Service Cost iill June 30,2014 in its books of accounts. Amount Utilized Note ---- Rupees ---- Property, plant and equipment nventory in process Stores and spares Advances, prepayments and other receivables Property, plant and equipment ,002,372 ~812,228 \3,402,358,595 2,397,168,421 ~5,905,955 ci03,796,718 n9,783,628 ("'"62,240, ,550 2,757,017,786 These represents written down value of the property, plant and equipments held by the company on behalf on its associated companies. These assets relates, solely, for the development, construction and maintenance of the project. The associated companies have adopted straight lines method for depreciating these assets. The breakup of written down value of these assets is as follows: Rupees Cost Accumulated depreciation r 244,043,310 r-i74,040, ,598,508 ("( 42,786,280) [ 193,812,228

15 8.2.2 nventory in process These represents construction work capitalized on the project based on the extent of work completed which consists of: ---- Rupees ---- Stores, spares and tools issuance Overheads Contractor cost Salaries, wages and other benefits ~31,320 ~506,072 ~75,410 ('f6g,751,112 ~74,193,206 ~ 632,513 n23,858,659 ~278,723 r"":3,402,358,595 r1d[7, 168, Stores and Spares These represents stores, spares and loose tools held by the company to be consumed for the development, construction and maintenance of the project on behalf of its associated companies. These includes assets of both capital nature and consumables Rupees ---- Stores Spares Tools Capital stores mport in process Loans, advances and prepayments 176,837,344 31,273, ,747 37,008, ,905,955 68,081,661 10,508, , ,766 16,894, ,718 These represents advances, loans and deposits paid by the company for the project. Loan and advance to project workers Advance to suppliers and contractors Advance for purchases Deposits Prepayments Rupees ---- (""'3,139,820 ("""64,810,925 ('"'55,550 C"3"14,O 00 cr;463,333 t" 69,783,628 t'"'f.933,306 ~~57,154, 244,281 t'"314,000 \7,791,677 F62,240, Cash and bank balances These represents the amount of cash and bank balances held by the company on behalf of the associated companies. These excludes the amount of cash generated by the company out of issue of its share capital and income generated by itself (l.e. return on deposit account)... Cash at bank: - in current account - in deposit account Cash in hand Note Rupees ---- ~2,948,723 ~535,256 (31,483, ,327 (' 32,478,306 t-(6,687,689),6,551,137 F;136,552) 9.85,137?i848, These carry return on deposit accounts ranging from 6%to 7%(2014 :7 %to 8 %).

16 9. CONTNGENCES AND COMM[TMENTS Contingencies The company has no contingencies as at the balance sheet date., Commitments Note Rupees Letters of credits 44,979,900 3,337, REVENUE Project supervision fees This represents management fees charged by the company from its associated companies. Management fees is 0.25% for the sub-contractors charges plus its coordination charges as per agreement between the company and its associated companies. 11. ADMNSTRA TVE EXPENSES Rupees Salaries, wages and other benefits 2,620,056,279,986 Entertainment and mess 249, ,138 Traveling and conveyance 400, ,234 Communication 191,610 84,380 Auditor's remuneration 600, ,000 Legal and professional 30, ,500 General and miscellaneous 230, , Auditor's remuneration 41323,177!D,794,989 Audit fee 400, ,000 Consultancy fee 200, , , , OTHER NCOME Profit on deposit account 11892A RELATED PARTY TRANSACTONS Parties are considered to be related if one party has the ability to control the other party a exercise significant influence over other party in making financial and operating decisions. The related parties comprise of major shareholders, associated companies with or without common directors, directors of the company and key management personnel, staff provident fund, and financial institution having nominee on the Board of Directors. Remuneration and benefits to executives of the company are in accordance with the terms of the employment while contribution to the provident fund is in accordance with staff se ice rules. Transactions with other related parties are entered into at rates negotiated with them.

17 Unless other wise disclosed separately, the transactions and balances with related parties are as under; --- Rupees --- Transactions Lucky Cement Limited Cement purchased 123,260, Lucky Landmark (Pvt) Ltd Supervision fees 1,874,121 2, Lucky Textile Mills Limited Supervisionfees 953,460 1,407,489 YB Pakistan Limited Long Term Advance 13,000, Y.B Holdings (Pvt) Ltd Long Term Advance 20,000, Rupees 900,025 Balances 6,442, ,277, ,000, ,000, DATE OF AUTHORZATON FOR SSUE 03 OCT 2015 These financial statements were authorized for issue on of the Company. 15. GENERAL The figures have been rounded off to nearest rupees. by the Board of Directors 01