MINUTES OF THE MEETING

ATIF IQBAL DIRECTOR ADMIN & FINANCE

MAHMOOD IQBAL MANAGER SALES OFFICE

FAISAL JAVAID CHIEF ACCOUNTANT

SAAD RAHIM ACCOUNTS OFFICER

SAQIB KHAN MANAGER WARE HOUSE

1. ACCOUNTS RECEIVABLE

To Be Written Off 3yrs Movement

There are certain customer accounts showing zero movement over past three years. Recovery
letters have been issued to them but gained no response. These accounts should be written off
according to Accounting Policy. (Annex -I)

Rounded Off
Few accounts show rounding differences. These must be rounded off to zero and amount shall
be charged to Other Income. (Annex -I)

Adjustments of inappropriate accounts

There are Five accounts namely; ”Cash Sale, Cash Sale Publication, Credit Sales, Damage Stock
and Free Distribution” which should not appear in Accounts Receivable. Due to software
limitation, these accounts have been used to fulfill the requirements. These should be adjusted
this year and must be eliminated from accounts receivables. The amounts of Cash Sale, Cash
Sale Publication and Credit Sale should be charged to the Other Income. Free Distribution
Account must be transferred to Free Distribution Expense for the year 2009-10. Damage Stock
a/c Balance shall be charged to Spoiled and Obsolete Expense for the year 2009-10. (Annex -I)

Untraced Receipts
Over the year – all untraced deposits shall be kept in “Untraced Receipts Account” for
subsequent year only and at year end they shall be transferred to Other Income for the year.
Untraced Receipts for the year 2008-09 for Rs.14’808/- shall be charged to Other Income of year
2009-10. (Annex -II)

2. ACCOUNTS PAYABLE

Written Off
 There are 13 Accounts in Payables which appear for no reason other than posting mistakes over
last couple of years. These accounts are to be written off and amount shall be charged to Other
Income a/c. (Details Attached)

Adjustments
In vendor accounts, few accounts show wrong balances due to posting error in previous years.
These differences have been verified from vendors and need to be cleared so as to show
accurate vendors payable state. The differences shall be charged to Other Income a/c. (Details
Attached)

3. INVENTORY ADJUSTMENTS
Thorough adjustment of Inventory issues is to be placed this year for Items in no. 15000 Approx.
In Value Rs.211’052/- Approx. (Annex-IV)

4. OBSOLETE AND SPOILED

(Annex-V)

5. LOST IN TRANSIT
(Annex-VI)

6. FREE DISTRIBUTION
This year; Free Distribution reached to a sum of Rs.195’060/11, out of which, Rs.16’894/- pertain
to year 2009-10 and Rs.178’166/11 relate to year 2008-09. (Annex-VII)

7. DISPLAY CENTRE ADJUSTMENTS

Display Centre is part of Al-Huda Equity and is currently treated as account receivable due to
software limitation. This year, Closing Inventory of Display Centre shall be clubbed in by issuing a
credit memo to Display Centre for the complete inventory as on 30 th June at Display Centre.
(Annex-VIII)
8. TAX ADJUSTMENTS
There are three “Tax at Source - Vendors” adjustments this year. An amount of Rs.1337/- was to
be shown as Other Current Liability which was mistakenly not posted last year. This year,
amount shall be charged against equity as adjustment to tax.
Two amounts were withheld against invoices of Trade Link and Instant Printer, Rs.5724/- and
Rs.2800/- respectively, got overlooked and have not been deposited to bank. Both shall be
deposited at earliest. (Annex-IX)