Pakistan Afghanistan Joint Chamber of Commerce ... - PAJCCI
Transcript of Pakistan Afghanistan Joint Chamber of Commerce ... - PAJCCI
Pakistan Afghanistan Joint Chamber of Commerce & Industry (PAJCCI)
Financial Statements
For the year ended
June 30, 2017
PAKISTAN CHAPTER
%REANDAReanda Haroon Zakaria & CompanyChartered Accountants
AUDITORS'REPORT TO THE MEMBERS
We have audited the annexed balance sheet of PAKISTAN AFGHANISTAN JOINT
CHAMBER OF COMMERCE AND INDUSTRY as at June 30, 2017 and the related
statement of income and expenditure, statement of comprehensive income, statement of cash
flows and statement of changes in net assets (general fund) 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 ofour 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approved accounting standards and the requirements of the repealed Companies Ordinance,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 our opinion, proper books of accounts have been kept by the company as requiied by
the repealed Companies Ordinance, 1984;
(b) in our opinion:
i. the balance sheet and income and expenditure account together wjth the notes
thereon have been drawn up in conformity with repealed Companies Ordinarlce,
1984, and are in agreement with the books of account and are further in
accordance with accounting policies consistently applied;
M
Room No. M1-M4, Mezzanine Floor, Progressive Plaza, Plot No.5-CL-10,Civil Lines Quarter,Beaumont Road, Near Dawood Centre, Karachi-75530 Pakistan.Phone: +9221 35674741-44 | Fax: +92 21 35674745Emai l: [email protected] I URL: http://www.hzco.com. pk
%REANDA
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;
in our opinion, and to the best of our information and according to the explanations
given to us, the balance sheet, statement of income and expenditure, statement of
comprehensive income, statement of cash flows and statement of changes in net assets
(general fund) together with the notes forming part thereof conform with approved
accounting standards as applicable in Pakistan, and give the information required by the
repealed 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 30,2017 and of the
deficit, its comprehensive loss, its cash flows and changes in net assets (general fund)
for the year then ended; and
in our opinion, no Zakatwas deductible at source under the Zakatand Ushr Ordinance,
1980.
ii.
lll.
(c)
(d)
%*"*uaD--*, -at@;<Lc--Reanda Haroon Zakaria & Company
Chartered Accountants
Engagement Partner:Muhammad lqbal
Place: KarachiDated: 29AUG20tI
PAKISTAN AFGIUNISTAN TOINT CHAMBER OF COMMERCE AND INDASTRYBAI,ANCE SHEET
AS AT JUNE 30,2017
2017Rupees
2016
RupeesNote
ASSETS
Non-Current Assets
Property and equipmentIntangible assets
Current Assets
Subscription receivable from First DirectorsAdvances
Cash and bank balances
Total Assets
FUND AND LIABILITIES
General fund
Current Liabilities
Advance subscriptionOther payables
Total Fund and Liabilities
The annexed notes from 1 to 14 form an integral part of these financial statements.
7r5gl,2lg36,384
7,524,0_90
71617,603 7,524,090
275,000
I1,947278
275,000
4,000
1,773,895
2,052,895
9,564,ggl 9,576,985
9,654,926 9,119,175
856,267
788
910,055
392,810
65.000
457,810
9,564,881 9,576,985
Director
PAKISTAN AFGHANISTAN JOINT CHAMBER OF COMMERCE AND INDUSTRYSTATEMENT OF INCOME AND EXPENDITURE
FOR THE YEAR ENDED TUNE 30, 2017
2017 2016Note Rupees Rupees
INCOME
Grant from CIPE
Grant from TAFMembership income
Trade delegation
Profit on short term investmentsIssuance of visa recommendation letterGain on disposal of fixed assets
Other service income
10
8
EXPENDITARE
Salaries and other benefits
DepreciationAmortizationRent
Utilities. Communication and postage
Board meeting expenses
Advertisement and promotionsPrinting and stationeryFee and subscription
Auditors' remuneration
Annual trade conference - TAFTravel and entertainment' Bank charges
Website maintenance charges - TAFMiscellaneous expense
@eficit) / surplus for the year
The annexed notes from I to 14 form an integral part of these financial statements.
l1
5,644,137
678,233
120,000
5,000
I8rl73ro52
1,480,950
901,101
12,127
196,435
77,81620,165
50,334
40,655
2,147,39450,000
2r711,670
398,815
16,462
514,467
19,010
(8,637,401)
_(464,349)(8,019,995)
2,353,496
2,707,8894,853,400
1,630,390
676,296
134,080
220,000
151,336
10,373,3 81
1,282,394
186,960
883,520
31,790
127,366
134,595
5,300
46,130
943,025
65,000
3,593,600
380,169
33,7_30
t6
W Director
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PAKISTANAFGHANISTAN TOINT CHAMBER OF COMMERCE AND IND(ISTRYSTATEMENT O F COT,IPREHENSIW INCOME
FOR THE YEAR ENDED TUNE 30,2017
I
1'.l''
2017Rupees
(464,349)
2016
Rupees
2,353,496@eficit) / surplus for the year
Other cornprehensive income for the year
Total comprehensive (loss) / income for the year ______ltf!f!2- 2,353,496
The annexed notes from I to 14 form an integral part of these financial statpments.
President
PAKISTAN AFGHANISTAN TOINT CHAMBER OF COMMERCE AND INDUSTRYSTATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JANE 30, 2017
A. CASH FLOIY FROM OPERATIINGACTIYITIES
@eficit) / surplus for the yearAdjustment for:
Depreciation
Gain on disposal of fixed assets
Amortization
Operating cash inflows before working capital changes
Working capital changes(Increase) / decrease in current assets
Profit accrued on short term investmentsAdvances
Inerease / (decrease) in current liabilitiesUnearned grant income from CIPEAdvance subscriptionOther payables
Net cash generated from / (used in) operating activities
B. CASH FLOW FROM INVESTING ACTIVITIES
Capital expenditure incurredSale proceed from disposal offixed assets
Short term investments matured
Net cash (used in) / generated from investing activities
C. CASH FLOW FROM FINANCINGACTIVITIES
Net decrease in cash and cash equivalents (A+B+C)
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end ofthe year
2017Rupees
(464,349\
901,101
L2,127
908,228
201 6
Rupees
2,353,496
186,960
186.960
443,879 2,540,456
4,000
463,457
tt.2t2456,245
900,124
299,472
(4,000)
(2,458,410)(402,790\
1,101,950)(3,667,678)
(1,127,222)
(1,006,741)
5,000
(7,404,399)
7,500,000
(1,001,741) 95,601
(101,617)
1,773,895
(1,031,621)
2,905,516
1,672,278
The annexed notes from 1 to 14 form an integral part ofthese financial statements.
Director
1,773,895
, l.rl,i :rI rllirl
I
PAKISTAN AFGHANISTAN JOINT CHAMBER OF COMMERCE AND INDASTRYSTATEMENT OF CHANGES IN NET A,S,SET^S . GENERAL FUND
FOR THE YEAR ENDED TUNE 30,2017
RestrictedNet Assels
Balance as at June 30r 2015
Total comprehensive income for the year
Net increase in restricted net assets during the year
Balance as at June 30, 2016
Total comprehensive loss for the year
Net increase in restricted net assets during the year
Balance as at.fune 30,2017 71617,603
The annexed notes from I to 14 form an integral part of these financial statements.
UnrestrictedNet Assets
TotalNet Assets
306,650
7,2r7,440
6,459,029
2,353,496
(7,217,440)
6,765,679
2,353,496
7,524,090
93,513
1,595,095
(464,349)
(93,513)
g,llg,l75
(464,349)
1,037,223 8,654,826
Director
PAKISTAN AFGHANISTAN TOINT CHAMBER OF COMMERCE AND INDUSTRYNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED JUNE 30, 2017
I LEGAL STATUSAND NATURE OF OPERATIONS
Pakistan Afghanistan Joint Chamber of Commerce and Industry (the Company) was incorporated in Pakistan
on November 18,2011 as a Company limited by guarantee under Section 42 of the repealed Companies
Ordinance, 1984 (now the Companies Ac! 2017). The principal object of the Company is to establish Joint
Chamber and to promote commerce and business relations between Pakistan and Afghanistan. The registered
office of the Company is situated at lst Floor, KCCI Building, Shahrah-e-Liaqat, Karachi.
In the event of the Company being wound up, every member of the Company undertakes to contribute to the
assets of the Company while he is a member or within one year afterwards, for the payment of the liabilities ofthe Company and costs, changes and expenses of winding up and for adjustment of the rights of the
contributories among themselves such amount as my be required but not exceeding rupees ten thousand.
2 BASIS OF PREPARATION
2.1 Statement of compliance
These financial statements have been prepared in accordance with the approved accounting standards, as
applicable in Pakistan. Approved accounting standards comprise of International Financial ReportingStandards for Small and Medium Sized Entities (IFRS for SMEs) issued by lnternational AccountingStandards Board (IASB) and Accounting Standards for Not-For-Profit Organizations (NPOs) issued bythe Institute of Chartered Accountants of Pakistan (ICAP), as are notified under the repealed Companies
Ordinance, 1984, and provisions of and directives issued under the repealed Companies Ordinance, 1984.
In case the requirements differ, the provisions or directives of the repealed Companies Ordinance, 1984
shall prevail.
Considering the practical difficulties faced by the companies to comply with the requirements of the
recently promulgated Companies Act, 2017, Securities and Exchange Commission of Pakistan (SECP),
vide its circular no. 17 of 2017 dated July 20,2017 , has decided that the companies whose financial year
closes on or before June 30, 2017 shall prepare their financial statements in accordance with theprovisions of the repealed Companies Ordinance, 1984.
2.2 Basis of Measurement
These financial statements have been prepared underthe historical cost convention. Further, accrual basis
of accounting is followed except for cash flow information.
2.3 Functional and presentation currency
The financial statements are presented in Pakistani rupees, which is the Company's functional and
presentation currency.
2.4 Use of Estimates and fudgment
The preparation of financial statements in conformity with approved accounting standards requiresmanagement to make estimates, assumptions and use judgments that affect the application of policies and
reported amounts of assets and liabilities and income and expenses. Estimates, assumptions andjudgments are continually evaluated and are based on historical experience and other factors, includingreasonable expectations of future events. Revisions to accounting estimates, if any, are recognizedprospectively commencing from the period of revision.
Judgments and estimates made by the management that may have a significant risk of materialadjustments to the financial statements in the subsequent year are as follows:
Property and equipment
The Company's management determines the estimated useful lives and related depreciation charge for itsproperty and equipment. This also includes estimating the residual values and depreciable lives. Further,the Company reviews the value of the assets for possible impairment on an annual basis. Any change inthe estimates in future years might affect the carrying amounts of the respective items of property andequipments with a corresponding affect on the depreciation charge and impairment.
3 SAMMARY OF SIGNIFICANTACCOUNTING POLICIES
3.1 Property and equipment
These are initially measured at cost. Subsequent to initial recognition these are measured at cost less
accumulated depreciation and impairment loss if any.
Depreciation is charged to income applying straight line method at the rates given in the relevant note.Depreciation is charged on additions from the month when the asset is available for use while nodepreciation is charged from the month of disposal.
Maintenance and normal repairs are charged to income as and when incurred while major improvements,if any, arc capitalized. Gains and losses on disposal of assets are included in the income and expenditureaccount.
The carrying values of tangible fixed assets are reviewed for impairment when event or changes incircumstances indicate that the carrying value may not be recoverable. If indication of impairment existsand where the carrying values exceed the estimated recoverable amount, the assets are written down totheir recoverable amounts.
3.2 Intangible assets
Intangible assets are stated at cost less accumulated amortization and any identified impairment loss.
Amortization is changed to income applying the straight line method at the rate given in the relevant note.Full year's amortization is charged on additions from the month of acquisition, while no amortization is
charged in the month of disposal.
3.3 Cash and cash equivalents
These include cash in hand and bank balances and are carried at cost.
3.4 Other payables
Other payables are carried at cost which is the fair value of the consideration to be paid in the future forservices received, whether or not billed to the Company
3.5 Toxation
The Company is granted tax credit equal to 100% of the tax payable as per section 100C of the IncomeTax Ordinance, 2001.
3.6 Provisions
Provisions are recognized when the Company has a present legal or constructive obligation, as a result ofpast events and it is probable that an outflow of resources embodying economic benefits will be requiredto settle the obligation and a reliable estimate can be made of the amount of obligation.
3.7 Revenue Recognition
- Membership subscription and other income are recognized on occurrence of transactions.
- Service income is recognized at the time when the services are rendered to the clients.
- The Company follows deferral method of accounting for the recognition of contribution. Recognition ofrestricted contribution is deferred till the date when the conditions associated with the contribution havebeen fulfilled by the Company.
Therefore grants are recognized where there is reasonable assurance that the grants will be received andall attached conditions will be complied with. If the grant relates to the expenses, then, it is initiallyrecognized as liability and transferred gradually to income over the period necessary to match the granton a systematic basis to the costs that it is intended to compensate.
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Note
2017
Rupees
9,000
203,511
90,000
302,511(266,127)
36,384
2016
Rupees
9,000
155,000' 90,000
254,000(254,000)
5 INTANGIBLE ASSETS
Domain registration
Website development
Hosting charges
Amortization
Rate %
5.1 Amortizution
Opening
Charge for the year
6 CASHAND BANKBALANCES
Cash in hand
Cash at banks - current accounts
8 ADVANCE SABSCRIPTION
Opening balance
Membership received during the year
Membership income transferred to income and
expenditure account
9 OTHERPAYABLES
Auditor's remuneration payable
Other payables
5.1
330h 33%
254,000
12,127
254,000
266,127 2s4.000
1,672,279 1,773,895
7 GENERAL FUND 8,654,826 9,119,175
7.1 General fund represents the total net assets of the Company. Out of total net assets, assets subject tointernal restrictions amounting to Rs. 7.618 (2016: Rs. 7.524) million representing the total fixed assets
as on the balance sheet date. There are no external restrictions over the remaining net assets.
74,692
1,597,586
2017Rupees
392,810
1,1411690
(678,23?)
856,267
90,499
1,683,396
2016Rupees
795,600
1,227,590
(1,630,380)
392,810
50,000
3,788
65,000
53,788 65,000
Note
2017
Rapees
201 6
Rupees
4,853,40010 GRANT FROM TAF
Salaries and other benefitsFee and subscriptionTravel trade delegation
Website maintenance charges
11 OTHER SERVICE INCOME
10.I 5,644,137
10.1 The Company has extended the existing collaboration with "The Asia Foundation" (TAF - Phase II) forachieving the shared objectives of the "Enhancing Trade and Regional Cooperation between Pakistan andAfghanistan". The grant is for limited time period i.e. (July 2016 - March 2017). This grant was alsogiven to facilitate the Company by expanding its association with allied chambers by co-sponsoring tradeevents (matchmaking, conferences trade promotions & expos etc.) held during the year. This grant wasgiven against the specified expenses which have been incurred and classified in these financial statementsunder the following heads of accounts:
2017
Rupees
618,000
1,goo,ooo
2,711,670
5t4,4675,644,137
2016
Rupees
659,800
600,000
3.593 600
4,853,400
_1-51,336_
11.1 This represents services rendered to various clients / members on account of facilitating them toparticipate in various trade events and providing them with travel and accommodation facilities.
1.725.682
2017
Note Rupees
275,0001,672,279
2016
Rupees
t2 FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
12,1 Financial Instruments by Category
Financial Assets
Subscription receivable from First DirectorsCash and bank balances
Financial LiabilitiesOther payables
275,0001,773,895
1,947,278 2,048,89s
53,788
13 GENERAL
- Number of employees as at June 30, 2017 were a Q0$:3).
- Figures have been rounded offto the nearest Rupees.
14 DATE OF AATHORIZATION FOR ISSUE
These financial statements have been authorized for issue by the Board of Directors of the Company on
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6s.000