XYZ Mills Limited

8/8/2019 XYZ Mills Limited

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XYZ MILLS LIMITED

BALANCE SHEET

AS AT JUNE 30, 2009

EQUITY AND LIABILITIES ASSETS

Jun-09 Jun-08 Jun-09 Jun-08

NOTES Rupees. NOTES Rupees.

SHARE CAPITAL NON CURRENT ASSETS

Authorized capital 155,000,000 155,000,000 Property, plant & equipment 14 485,081,154 511,265,421

15,500,000 Ordinary shares of Rs. 10/- each

Issued, subscribed and paid up capital 4 124,903,300 84,903,300

Capital work in progress 15 967,795 -

Un-appropriated profit / (loss) (225,068,119) (216,356,922)

(100,164,819) (131,453,622)

SURPLUS ON REVALUATION OF FIXED ASSETS 5 119,053,801 129,566,315 Long term deposits 16 1,503,245 1,503,245

DIRECTOR'S LOAN 6 60,000,000 60,000,000

NON CURRENT LIABILITIES

Demand finances 7 186,481,613 150,833,998

CURRENT LIABILITIES CURRENT ASSETS

Trade and other payables 8 127,164,726 162,371,333 Stores, spares and loose tools 17 9,679,728 8,170,239

Interest, profit or mark-up accrued on loans 9 49,883,963 34,818,610 Stock in trade 18 61,240,684 230,676,411

Short term borrowings 10 89,582,905 312,035,989 Trade debtors 19 3,341 635

Current portion of long term liabilities 11 88,333,335 53,900,001 Loans and advances 20 50,520,763 9,648,432

354,964,929 563,125,933 Trade deposits and short term prepayments 21 1,996,724 11,183,257

Tax refunds due from Government departments 22 7,716,784 4,885,103

Cash and bank balances 23 1,625,306 43,701

Provision for taxation 12 - 5,303,821 132,783,331 264,607,778

CONTINGENCIES AND COMMITMENTS 13

620,335,524 777,376,444 620,335,524 777,376,444

The annexed notes from 1-35 form an integral part of these accounts.

CHIEF EXECUTIVE DIRECTOR


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XYZ MILLS LIMITED

PROFIT AND LOSS ACCOUNT

FOR THE YEAR ENDED JUNE 30, 2009

Jun-09 Jun-08

NOTES Rupees.

Sales - net 24 1,095,720,970 1,058,483,853

Cost of sales 25 (1,030,129,497) (1,064,225,022)

Gross profit 65,591,473 (5,741,169)

Distribution cost 26 (1,127,425) (1,244,519)

Administrative expenses 27 (11,461,772) (12,391,739)

Other operating income 28 1,938,416 2,224,723

Operating profit 54,940,693 (17,152,704)

Finance cost 29 (74,164,404) (65,898,932)

Net profit/(loss) before taxation (19,223,711) (83,051,636)

Taxation - (5,303,821)

Net profit/(loss) after taxation (19,223,711) (88,355,456)

Basic earning per share 30 (2.26) (10.41)

The annexed notes form an integral part of these accounts.



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XYZ MILLS LIMITED

STATEMENT OF CHANGES IN EQUITY


Share Unappropriated Total

capital Profit

Rupees

As at June 30,2007 84,903,300 (139,550,977) (54,647,677)

Profit/(loss) for the year - (88,355,456) (88,355,456)

- 11,549,511 11,549,511

As at June 30,2008 84,903,300 (216,356,922) (131,453,622)

Increase in share capital during the year 40,000,000 - 40,000,000

Profit for the year - (19,223,711) (19,223,711)

Addition in suplus during the year - - -

- 10,512,514 10,512,514

As at June 30,2009 124,903,300 (225,068,119) (100,164,819)


Transfer from Surplus on revaluation of property, plant andequipment on account of incremental depreciation charged inthe profit and loss account net of deferred taxation

Transfer from Surplus on revaluation of property,plant andequipment on account of incremental depreciation charged inthe profit and loss account net of deferred taxation


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XYZ MILLS LIMITED

CASH FLOW STATEMENT

FOR THE YEAR ENDED JUNE 30,2009

Rupees Rupees

CASH FLOW FROM OPERATING ACTIVITIES NOTES Jun-09 Jun-08

Profit before taxation (19,223,711) (83,051,636)Add/(less) adjustment for non-cash charges and other items

Depreciation 48,104,967 53,100,243

Gain on disposal - (230,000)

Provision for worker's Profit Participation Fund - -

Provision for gratuity - -

Interest on Worker's profit participation fund. - -

Financial charges 74,164,404 65,898,932

122,269,371 118,769,174

Operating profit before working capital changes 103,045,660 35,717,539

Effect on cash flow due to working capital changes

(Increase)/decrease in stores, spares and loose tools (1,509,489) (2,634,703)

(Increase)/decrease in stock in trade 169,435,727 (71,400,434)

(Increase)/decrease in trade debts (2,706) 1,573,900

(Increase)/decrease in deposits and prepayments (34,586,959) (6,572,647)

(Increase)/decrease in tax refunds (2,831,681)

Increase/(decrease) in creditors, accrued and other liabilities (41,839,558) (40,745,223)

Net change in working capital 88,665,333 (119,779,107)

Financial charges paid (52,466,099) (53,833,969)

Tax paid (2,402,660) (4,490,978)

Gratuity paid - -

(54,868,759) (58,324,947)

Net cash obtained from operating activities 136,842,234 (142,386,516)

CASH FLOW FROM INVESTING ACTIVITIES

Fixed capital expenditure (21,920,700) (2,430,507)

Capital Work in progress (967,795) -

Security deposit paid -

Net cash used in investing activities (22,888,495) (2,430,507)

CASH FLOW FROM FINANCING ACTIIVTIES

Issue of capital 40,000,000

Lease rental paid - -

Changes in long term loans 70,080,949 25,760,999

Short term loans (222,453,084) 119,026,327

Net cash used in financing activities (112,372,135) 144,787,326

NET INCREASE IN CASH AND BANK BALANCES 1,581,604 (29,697)

CASH AND BANK BALANCES AT THE BEGINNING OF YEAR 43,701 73,399

CASH AND BANK BALANCES AT THE END OF YEAR 23 1 625 306 43 701


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XYZ MILLS LIMITED

NOTES TO THE ACCOUNTS


1 THE COMPANY AND ITS OPERATIONS

2 BASIS OF PREPARATION

2.1 Statement of Compliance

2.2

Effective from accounting period beginning on or after July 01, 2008

IFRIC 13 - Customer loyalty programme

Effective from accounting period beginning on or after January 01, 2009IFRS 3 - Business Combinations

IAS 1 - Presentation of Financial Statements

IAS 23 - Borrowing Costs

IAS 27 - Consolidated Financial Statements

Effective from accounting period beginning on or after July 01, 2009

IFRS 7 - Financial Instruments: Disclosures

2.3 Accounting Convention

3 SIGNIFICANT ACCOUNTING POLICIES

XYZ Mills Limited is an unlisted Public Limited Company incorporated under the Companies Ordinance, 1984on May 30, 1990. The registered office of the company is situated at ABC. The principal activity of the companyis manufacturing and sale of yarn of all types.

These financial statements have been prepared in accordance with the requirements of the Companies Ordinance,1984 and approved International Accounting Standards as applicable in Pakistan. Approved accountingstandards comprise of such International Accounting standards as notified under provisions of the CompaniesOrdinance, 1984, International Financial Reporting Standards (IFRS) and Accounting and Financial ReportingFramework for MSEs. Wherever, the requirements of the Companies Ordinance, 1984 or directives issued bySecurities and Exchange Commission of Pakistan differ with the requirements of these standards, therequirements of the Companies Ordinance, 1984 or the requirements of the said directives take precedence.

Standards, interpretations and amendments to published approved accounting standards that are not yeteffective

The following standards and interpretations of accounting standards are either not relevant to Company'soperations or are not expected to have significant impact on the company's financial statements other thatincreased disclosures in certain cases:-

These accounts have been prepared in Pak Rupees under the "Historical Cost Convention" except forrevaluation/re-measurement of certain fixed assets as stated in Note 5, except as modified by exchangedifferences, if any.

The significant accounting policies adopted in the preparation of financial statements are set out below. Theseli i h b i t tl li d t ll th t d l th i t t d


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method.


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accoun .


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3.9 Borrowing Cost

3.10 Trade Debts and Other Receivables

3.11 Financial Instruments

3.12 Cash and Cash Equivalents

3.13 Provisions

3.14 Off-Setting

3.15 Impairment

Recoverable amount is the greater of the net selling price and value in use.

Interest, mark-up and other charges on long term liabilities are capitalized up to the date of commencing ofrespective fixed assets acquired out of proceeds of such long term liabilities. All other costs incurred inconnection with borrowings and incidental interest and mark up are charged to current year's income.

Trade debts originated by the company are recognized and carried at original invoice amount less an allowancefor any uncollectible amounts. An estimate for doubtful debts is made when collection of the amount is nolonger probable.

All other financial assets and liabilities are recognized at cost which is the fair value of the consideration givenor received at the time when the company becomes a party to the contractual provisions of the instrument byfollowing trade date accounting. Any gain or loss on subsequent measurement and de-recognition is charged toincome.

Cash and Cash Equivalents are carried in the balance sheet at cost. For the purpose of cash flow statement, cashand cash equivalents consist of cash in hand and balances with banks.

Provisions are recognized when the company has a legal or constructive obligation as a result of past events & itis probable that an outflow of resources embodying economic benefits will be required to settle the obligationand a reliable estimate of the amount can be made.

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

At each balance sheet date, the Company reviews the carrying amounts of its assets except freehold land todetermine whether there is any indication that those assets have been suffered in impairment loss. If any suchindication exists, the recoverable amount of the asset is estimated in order to determine the extent if impairmentloss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Companyestimates the recoverable amount of the cash generating unit to which the asset belongs.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of theasset is reduced to its recoverable amount. Impairment losses are recognized as an expense immediately.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revisedestimate of its recoverable amount, but limited to the extent of initial cost of the asset. A reversal of animpairment loss is recognized as income immediately.


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Jun-09 Jun-08

Rupees Rupees

4 ISSUED, SUBSCRIBED AND PAID UP CAPITAL

12,490,330 (2008 : 8,490,330) ordinary shares of Rs.10-each 124,903,300 84,903,300

124,903,300 84,903,300

5 SURPLUS OF REVALUATION OF FIXED ASSETS

Surplus on revaluation as at July 01 129,566,315 154,312,319

Surplus on revaluation of building carried out

during the year - (13,196,493)

129,566,315 141,115,826

Transferred to unappropriated profit in respect of

incremental depreciation charged during the year

(10,512,514) (11,549,511)

Related deferred tax liability - -

(10,512,514) (11,549,511)

119,053,801 129,566,315

Related deferred tax liability on:

Revaluation as at July 01

Incremental depreciation charged during the

year transferred to profit & loss account - -

119,053,801 129,566,315

6 DIRECTOR'S LOAN 6.1 60,000,000 60,000,000

6.1

7 DEMAND FINANCES

The Bank of Punjab DF-I

Opening Balance - -

Transferred from other facilities 91,438,950 -

Payment made during the year -

Revaluation of fixed assets had been carried out as on February 20, 2008 by independent valuer Mughal Associates,architect, engineer, surveyors and valuator on the basis of depreciated replacement value. Revaluation surplus/(deficit) arising on revaluation of land & building was credited to "Surplus on revaluation of fixed asset" accountand deficit arising on revaluation of machinery was debited to "Surplus on Revaluation of fixed assets" account.

An amount equal to incremental depreciation net of deferred tax for the year has been transferred from "Surplus onrevaluation of property, plant and equipment" account to "Unappropriated profit" for recording realization of surplusto the extent of incremental depreciation net of deferred tax charged during the period.

The director of company gave a loan to the company for repayment of loan. Out of which the company gaveRs.50.M as a guarantee margin to NBP against the rescheduling of FAF. This is an interest free loan and is repayableat the option of the Company.


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Jun-09 Jun-08

Rupees Rupees

The Bank of Punjab

Opening Balance 20,000,001 23,333,334

Obtained during the year - -

Payment made during the year - (3,333,333)

20,000,001 20,000,001

Less:

-Current portion transferred during current period/year - (6,666,666)

-Transferred to DF-I (20,000,001)

- 13,333,335

The Bank of Punjab

Opening Balance 6,221,000 7,110,000


Payment made during the year - (889,000)

6,221,000 6,221,000

Less:



- 4,443,222

The Bank of Punjab

Opening Balance 10,000,000 10,000,000


Payment made during the year - -

10,000,000 10,000,000

Less:



- 7,777,778

National Bank of Pakistan

Opening Balance 55,332,999 58,099,667


Payment made during the year (8,300,001) (2,766,668)

47,032,998 55,332,999

Less:

-Current portion transferred during current period/year (13,833,335) (11,066,668)

33,199,663 44,266,331


Opening Balance 70,000,001 70,000,000


P d d i h


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Jun-09 Jun-08

Rupees Rupees


2,180,000 5,180,000


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Jun-09 Jun-08

Rupees Rupees


Opening Balance 35,000,000 -

Obtained during the year - 35,000,000

Payment made during the year - -

35,000,000 35,000,000

Less:


11,666,668 29,166,667

186,481,613 150,833,998

8 TRADE AND OTHER PAYABLES

Trade Creditors:

For cotton 54,473,019 51,582,426

For store supply 8,248,925 12,085,677

For contractors 172,362 215,262

Others 34,771,193 49,851,002

Advances from customers 8,474,496 20,940,928Accrued expenses 12,448,934 15,865,267

Commission on sales & purchases 1,680,293 1,486,908

Withholding tax 6,189,482 9,356,610

Other payables 706,023 987,253

127,164,726 162,371,333


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Jun-09 Jun-08

Rupees Rupees

9 INTEREST, PROFIT OR MARK-UP ACCRUED ON LOANS

Accrued mark up on long term bank borrowings-secured 36,086,733 12,848,735

Accrued mark up on short term bank borrowings-secured 13,156,817 14,696,511

Bank overdraft 640,412 7,273,364

49,883,963 34,818,610

10 SHORT TERM BORROWINGS

The Bank of Punjab

Cash finance - 96,464,621

Running finance - 44,999,950

- 141,464,571


Cash finance ( Hypothecation ) 19,998,106 19,998,106

Cash finance 69,584,799 150,573,312

89,582,905 170,571,418

89,582,905 312,035,989


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Jun-09 Jun-08

Rupees Rupees

11 CURRENT PORTION OF LONG TERM LIABILITIES

The Bank of Punjab

-Current portion transferred during current period/year

Demand finance-7.1 - -

Demand finance-7.2 - 6,666,666




Demand finance-7.5 13,833,335 11,066,668

Demand finance-7.6 46,666,668 23,333,334

Demand finance-7.7 4,500,000 3,000,000

Demand finance-7.8 23,333,332 5,833,333

88,333,335 53,900,001

88,333,335 53,900,001

11.1

12 PROVISION FOR TAXATION

Provision made during the year u/s 113 - 5,303,821

12.1

12.2

13 CONTINGENCIES AND COMMITMENTS

During the year the company

14 PROPERTY, PLANT & EQUIPMENT

See Annexure A

15 CAPITAL WORK IN PROGRESS comprises of

Building:

Factory 967,795 -

967,795 -

These all amounts represents the amount to be paid in order to settle the short term obligation of the demand financeand long term loan as mentioned in note # 6. It is only based on the current terms and conditions as mentioned by

the bank in revised term letter. These balances can be revised according to the new terms and conditioned.

The Company is not liable to pay income tax due to the losses and by the omission of Section 113 of Income TaxOrdinance 2001 in Finance Act 2008-09.

Being prudent, the company has not accounted for deferred tax asset/liability because the management is of theview that it is not likely to reverse in the foreseeable future.


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Jun-09 Jun-08

Rupees Rupees

18 STOCK IN TRADE

Raw material 55,451,394 220,260,522

Work-in-process 3,576,953 5,738,360

Finished goods 1,839,843 4,266,630

Waste 372,494 410,899

61,240,684 230,676,411

19 TRADE DEBTS

Local unsecured- (considered good) 3,341 635

Foreign-secured (considered good) - -

3,341 635

20 LOANS AND ADVANCES

Advances- Unsecured ( considered good)

Suppliers

cotton 37,482,020 333,119

goods supply 170,487 3,163,963

contractors 9,560,031 4,987,792

commission agents 45,760 7,200

Others 2,121,496 -

Employees 1,140,969 1,156,35850,520,763 9,648,432

21 DEPOSITS AND PREPAYMENTS

Income tax 21.1 1,500,107 4,401,268

L/C deposits 496,617 6,091,989

Bank guarantee margin - 690,000

1,996,724 11,183,257

21.1 Advance income tax -

Opening balance 4,401,268 4,589,198

Addition during the year 2,402,660 4,490,978

6,803,928 9,080,176

Adjustment made during the year (5,303,821) (4,678,908)

1,500,107 4,401,268

22 TAX REFUNDS

Sales tax refundable 7,716,784 4,885,103

7,716,784 4,885,103

23 CASH AND BANK

Cash in hand 35,358 42

Cash at banks

Current accounts 1,589,948 43,659


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Jun-09 Jun-08

Rupees Rupees

25 COST OF SALES

Raw material consumed 25.1 806,920,940 822,006,116

Packing material consumed 25.2 14,025,120 12,663,863

Stores and spares consumed 25.3 8,850,139 17,670,593

Salaries wages and other benefits 47,400,339 51,962,113

Fuel and power 97,597,534 103,168,819

Insurance 2,340,889 4,208,166

Depreciation 47,850,028 52,795,811

Repair & maintenance 517,909 931,781

Other manufacturing overheads - -

1,025,502,897 1,065,407,262

Work In process

Opening 5,738,360 5,261,879

Closing (3,576,953) (5,738,360)

2,161,407 (476,481)

Finished goods

Opening 25.1.2 4,677,529 3,971,770

Closing 25.1.3 (2,212,337) (4,677,529)

2,465,192 (705,759)

1,030,129,497 1,064,225,022

25.1 Raw material consumed

Cotton -local 25.1.1 806,920,940 822,006,116

Polyester - -

806,920,940 822,006,116

25.1.1 Raw cotton consumed

Opening balance 220,260,522 150,042,328

Purchases-net 629,243,900 875,920,061

Direct expenses 12,867,912 16,304,249862,372,334 1,042,266,638

Closing balance (55,451,394) (220,260,522)

806,920,940 822,006,116

25.1.2 Opening stock of finished goods

Yarn 4,266,630 3,614,469

Waste 410,899 357,301

4,677,529 3,971,770

25.1.3 Closing stock of finished goodsYarn 1,839,843 4,266,630

Waste 372,494 410,899

2,212,337 4,677,529

25.2 Packing material consumed

Opening balance 642,555 912,083


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Jun-09 Jun-08

Rupees Rupees

25.3 Stores & spares consumed

Opening balance 7,527,684 4,623,452

Purchases-net 10,319,175 20,269,639

Store handling and freight 251,322 305,186

18,098,181 25,198,277

Less:

Closing balance (9,248,042) (7,527,684)

8,850,139 17,670,593

26 DISTRIBUTION COST

Local selling expense 787,675 906,519

Salaries selling staff 302,000 325,000

Freight of sales return 25,750 -

Advertisement 12,000 13,000

1,127,425 1,244,519

27 ADMINISTRATIVE EXPENSES

Directors' remuneration - -Salaries, allowances and other benefits 5,007,469 5,774,419

Telephone, telegram and postage 666,633 833,555

Vehicle running & maintenance 1,745,400 1,775,230

Printing and stationery 94,725 100,287

Entertainment 426,830 423,520

Auditors' remuneration 27.1 175,000 225,000

Legal and professional 56,700 31,250

Fee and subscription 327,890 197,195

Repair and maintenance-others 590,246 320,864 Newspaper and periodicals 47,418 45,903

Depreciation 254,939 304,432

Traveling and conveyance 1,155,941 1,280,690

Electricity 732,523 779,883

Charity & donation 180,058 273,413

Miscellaneous 26,098

11,461,772 12,391,739

27.1 Auditor's remuneration

Audit fee 175,000 225,000175,000 225,000

28 OTHER OPERATING INCOME

Insurance claim - 143,312

Gain on disposals - 230,000


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Jun-09 Jun-08

Rupees Rupees

33 CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS

a Operating fixed assets

b Provisions

c Staff gratuity

34 AUTHORIZATION FOR APPROVAL AND ISSUE

These accounts were authorized to be issued on October 06, 2009.

35 GENERAL

-Figures of the current assets and current liabilities of previous year have been rearranged to facilitate comparison.

-Figures in these financial statements have been rounded off to the nearest rupee.


The preparation of financial statements in conformity with approved accounting standards requires the use of certainaccounting estimates. It also requires management to exercise its judgment in the process of applying the company'saccounting policies. The areas involving a higher degree of judgment are complexity, or areas where assumption andestimates are significant to the financial statements are as follows:

Estimates and judgments are continually evaluated and are based on historical experience and other factors,

including expectations of future events that are believe to be reasonable under the current circumstances.


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Property, Plant & Equipment Annexure A

As at June 30, 2009

PARTICULARS COST/REVALUATION DEPRECIATION

As on Additions/ Accumulated Surplus/ As on Rate As on Disposals As on

July 01,2008 (Deletions) Depreciation (Deficit) June 30,2009 July 01,2008 For the year adjustment June 30,2008

Rupees Rupees Adjustment Rupees Rupees Rupees Rupees Rupees

Land (Free hold) 4,200,000 4,200,000 - - -

Building 101,281,379 101,281,379 5% 3,882,583 4,869,940 8,752,523

Plant & Machinery 454,811,616 21,912,550 476,724,166 10% 48,737,233 42,798,693 91,535,926

Electric Installation 5,314,112 5,314,112 10% 3,500,161 181,395 3,681,556

Office Equipments 1,470,891 6,450 1,477,341 10% 680,785 79,656 760,441Computer Software 104,950 - - - 104,950 30% 82,813 6,641 89,454

Furniture and fixtures 696,120 1,700 - - 697,820 10% 454,782 24,304 479,086

Vehicles 3,770,540 - - - 3,770,540 20% 3,051,863 143,735 3,195,598

Arms & Ammunition 18,700 - - - 18,700 10% 12,667 603 13,270

Total 2009 571,668,308 21,920,700 - - 593,589,008 60,402,887 48,104,967 108,507,854

-

ALLOCATION OF DEPRECIATION % Amount

Cost of goods sold 99% 47,850,028

Admin & General 1% 254,939

TOTAL 100% 48,104,967

Had there been no revaluation, the written down value of the assets would be as follows:

Cost Accumulated Written Down

Depreciation Value

Land (Free hold) 4,000,000 - 4,000,000

Building 91,938,348 35,647,885 56,290,463

Plant & Machinery 841,624,724 433,666,046 407,958,678

Rupees 2009 937,563,072 469,313,931 468,249,141

Rupees 2008 937,563,072 417,730,693 519,832,379


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as at

June 30,2009

Rupees

4,200,000

92,528,856

385,188,240

1,632,556

716,900

15,496

218,734

574,942

5,430

485,081,154

W.D.V


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XYZ TEXTILE MILLS LIMITED

SURPLUS ON REVALUATION OF FIXED ASSETS

FOR THE YEAR ENDED 30TH JUNE , 2007.

Particulars Surplus Chaged upto Balance as at Charged for the year Balance as at30.06.2006 30.06.2006 30.06.2007 30.06.2007

Land 1,830,000 - 1,830,000 - 1,830,000

Building 21,192,694 8,838,143 12,354,551 617,728 11,736,823

Machinery 391,655,677 243,502,524 148,153,153 7,407,658 140,745,495

Total 414,678,371 252,340,667 162,337,704 8,025,385 154,312,319


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FOR THE YEAR ENDED 30TH JUNE , 2008.

Particulars Surplus Chaged upto Balance as at Adjustment for Total Surplus/ Charged for the year Balance as at

30.06.2007 30.06.2007 Rev./(Devaluation) ( Deficit ) 30.06.2008 30.06.2008

Land 1,830,000 - 1,830,000 200,000 2,030,000 - 2,030,000

Building 21,192,315 9,455,510 11,736,805 35,444,580 47,181,385 2,359,069 44,822,316

Machinery 391,655,677 250,910,182 140,745,495 (48,841,073) 91,904,422 9,190,442 82,713,980

Total 414,677,992 260,365,692 154,312,300 (13,196,493) 141,115,807 11,549,511 129,566,296



FOR THE YEAR ENDED 30TH JUNE , 2009

Particulars Surplus Chaged upto Balance as at Adjustment for Total Surplus/ Charged for the year Balance as at

30.06.2008 30.06.2008 Rev./(Devaluation) ( Deficit ) 30.06.2009 30.06.2009

Land 2,030,000 - 2,030,000 - 2,030,000 - 2,030,000

Building 56,636,895 11,814,579.25 44,822,316 - 44,822,316 2,241,116 42,581,200

Machinery 342,814,604 260,100,623.89 82,713,980 - 82,713,980 8,271,398 74,442,582

Total 401,481,499 271,915,203 129,566,296 - 129,566,296 10,512,514 119,053,782


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13. FIXED ASSETS SCHEDULE

As at June 30, 2008

PARTICULARS COST/REVALUATION DEPRECIATION

As on Additions/ Accumulated Surplus/ As on Rate As on Disposals As on as at

July 01,2007 (Deletions) Depreciation (Deficit) June 30,2008 July 01,2007 For the year adjustment June 30,2008 June 30,2008

Rupees Rupees Adjustment Rupees Rupees Rupees Rupees Rupees Rupees

Land (Free hold) 4,000,000 - 200,000 4,200,000 - - - 4,200,000Building 89,906,907 2,031,441 (26,101,549) 35,444,580 101,281,379 5% - 3,882,583 3,882,583 97,398,796

Plant & Machinery 838,935,608 2,689,116 (337,972,035) (48,841,073) 454,811,616 10% - 48,737,233 48,737,233 406,074,383

Electric Installation 7,614,112 (2,300,000) - 5,314,112 10% 3,554,166 175,995 230,000 3,500,161 1,813,951

Office Equipments 1,460,941 9,950 - - 1,470,891 10% 592,995 87,790 680,785 790,106

Computer Software 104,950 - - - 104,950 30% 73,325 9,488 82,813 22,137

Furniture and fixtures 696,120 - - - 696,120 10% 427,967 26,815 454,782 241,338

Vehicles 3,770,540 - - - 3,770,540 20% 2,872,194 179,669 3,051,863 718,677

Arms & Ammunition 18,700 - - - 18,700 10% 11,997 670 12,667 6,033

Total 2008 946,507,878 4,730,507.00 (364,073,584) (13,196,493) 571,668,308 53,100,243 60,402,887 511,265,421

(2,300,000)

Total 2007 818,383,052 128,164,826 - - 946,507,878 311,769,208 59,837,019 371,606,227 574,901,651

(40,000)

ALLOCATION OF DEPRECIATION % Amount

Cost of goods sold 99% 52,795,811

Admin & General 1% 304,432

TOTAL 100% 53,100,243

Had there been no revaluation, the written down value of the assets would be as follows:

Cost Accumulated Written Down

Depreciation Value

Land (Free hold) 4,000,000 - 4,000,000

Building 91,938,348 29,393,389 62,544,959

Plant & Machinery 841,624,724 388,337,304 453,287,420

Rupees 2008 937,563,072 417,730,693 519,832,379

Rupees 2007 937,563,072 364,073,584 573,489,488

W.D.V


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13.1 DISPOSAL OF ELECTRIC INSTALLATIONS

PARTICULARS Accumulated Written Sale Profit/ Mode of Particulars of

Cost Depreciation Down Value Proceeds (Loss) Disposal Buyer

Rupees Rupees Rupees Rupees Rupees

Electric Cables 2,300,000 230,000 2,070,000 2,300,000 230,000 Negotiation Prime electric

cables


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MAHBOOB SHEIKH AND CO.CHARTERED ACCOUTANTS

XYZ MILLS LIMITED

Audit for the year ended June 30, 2009

VALUATION OF FINISHED GOODS (YARN)

Bags Average Weight Kg. Avrage Rate per kg Value

Opening Stock 886 45.37 40,194 106.15 4,266,630

Add

Production during the period 179,852 45.36 8,158,096 125.70 1,025,502,897

Less

Opeing stock of waste 410,899

Waste sold (15,593,242)

Closing Stock of waste (372,494)

Yarn available for sale 180,738 45.36 8,198,290 123.71 1,014,214,690

Net Sales during the year -

Sales (180,767) 45.36 (8,199,593) 132.03 (1,082,556,315)

Sales Return 452 45.36 20,510

Closing Stock (As per records) 423 45.36 19,207 123.71 2,376,095

As per physical stock taking 301 45.36 13,653

At 20/s 423 45.36 19,187

Diffrence 0 20

NRV

COUNT Closing Stock NRV INCL. SELLING NRV EXCL. Closing Stock

LBS SALES TAX EXPENSE SELLING Rs.

(Per Lbs.) (Per Lbs.) EXPENSE.

A B C D=B-C A*D

14/S 8,200 60.50 0.06 60.44 495,589

16/S 13,800 61.00 0.06 60.94 840,939

20/S 8,100 62.20 0.06 62.14 503,315

30,100 1,839,842.7

Selling Expenses per kg

Export selling expense -

Local selling expense 787,675

Salaries Selling Staff 302,000

Freight of Sales Return 25,750

Advertisement 12,000

Total Expenses 1,127,425

Yarn sold (Kgs.) 8,199,593

Yarn sold (LBS.) 18,076,699

Selling cost per Lbs 0.06

OO S CO


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MAHBOOB SHEIKH AND CO.CHARTERED ACCOUTANTS

VALUATION OF Waste

Bales Weight Rate Amount Rs.

Soft Waste

Dropping 4,052 8.00 32,416

Lickerine 6,887 15.00 103,305

Ring Sweeping 4,099 10.00 40,990

Gutter 4,947 5.00 24,735

A / C filter 1,062 20.00 21,240

H waste 1,002 59.00 59,118

Pnemafil 79 95.00 7,505

Dust 83,185 1.00 83,185

Total - 105,313 372,494


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14/S 16/S 20/S 20/S H 21/S 22/S 24/S 30/S 40/S Total Coversion At 20/S

Opening Balances

11,794 18,099 - 1,452 2,812 2,449 36,606 40,194

Production

Jul-08 - 372,723 121,837 11,249 139,709 - 123,288 32,478 801,284 868,458

Aug-08 363,878 156,991 25,039 113,491 - 172,141 - 831,540 880,751

Sep-08 398,261 114,670 36,197 75,570 40,779 162,706 828,183 863,104

Oct-08 313,800 113,400 52,255 22,090 70,988 157,308 729,842 784,852

Nov-08 237,822 92,217 - 37,649 42,684 27,216 174,727 612,315 708,910

Dec-08 199,902 84,551 - - 27,488 40,461 170,145 522,547 625,066

Jan-09 217,773 76,794 - 55,430 42,593 29,439 136,080 558,109 630,091Feb-09 269,529 72,077 - 75,660 34,519 30,799 138,666 621,251 681,398

Mar-09 8,256 262,026 94,394 - 35,744 51,075 15,649 158,851 625,994 696,501

Apr-09 2,722 330,584 56,382 - 29,121 25,129 45,950 71,760 561,648 547,080

May-09 - 329,223 151,185 2,268 42,185 - 19,596 6,260 550,716 471,672

Jun-09 5,988 255,468 86,683 - 36,923 75,842 - - 460,903 400,212

Total 16,965 3,550,989 1,221,182 127,008 663,571 411,098 209,110 1,471,932 32,478 7,704,332 8,158,096

Sales

Jul-08 - 342,695 124,377 - 122,018 - 107,276 34,927 731,294 796,741

Aug-08 395,176 143,610 36,288 124,332 - 139,119 - 838,525 852,013

Sep-08 375,808 128,323 31,752 78,473 19,278 204,347 837,981 911,063

Oct-08 319,470 106,369 56,700 27,216 85,277 160,121 755,153 813,490

Nov-08 240,544 94,802 - 18,144 49,896 18,144 169,873 591,404 679,936

Dec-08 192,236 98,431 - 18,144 27,488 36,288 175,090 547,677 656,580

Jan-09 237,006 78,019 - 55,838 36,288 31,752 134,946 573,849 639,201

Feb-09 266,036 70,762 - 71,669 26,309 41,731 144,698 621,205 689,270

Mar-09 8,256 275,724 98,431 - 38,919 58,968 13,608 151,729 645,635 707,096

Apr-09 2,722 312,757 44,680 - 30,164 31,752 42,185 78,473 542,732 538,768

May-09 335,619 132,587 2,268 42,502 - 25,402 9,072 547,450 470,792

Jun-09 2,268 267,306 115,305 - 45,768 75,842 - - 506,490 444,644

Total 13,245 3,560,378 1,235,697 127,008 673,188 411,098 209,110 1,474,745 34,927 7,739,395 8,199,593

Sales Return

Jul-08 - 3,856 3,856 11,634

Oct-08 91 91 8,785

May-09 8,165 8,165 91

Total - 3,856 91 - 8,165 - - - - 12,111 20,510

Closng Balances


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3,720 6,260 3,674 - (0) - - (0) - 13,653 19,207

XYZ Mills Limited

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