C M A IE O D A C 1 8 O P N S R IN N E 9 4

FOURTH SCHEDULE REQUIREMENTS AS TO BALANCE SHEET
FIXED ASSETS:
Tangible: (a) Free-hold land (b) Lease-hold land (c) Buildings on free-hold land (d) Buildings on lease-hold land (e) Plant and machinery (f) Furniture and fittings (g) Vehicles (h) Capital work-in-progress (including significant item wise details), and (i) Others Intangible: (a) Goodwill (b) Patents, copyrights, trade-marks and designs; and (c) Others
Additional Disclosures: • Under each sub-head, other than Capital W.I.P., the following shall be stated: (i) Original cost or valuation, (ii) Additions and/or deductions, (iii) Aggregate amount written off up to balance sheet date by way of depreciation, amortisation and/or diminution in value. • Fixed Assets that are subject of Finance Lease shall be separately identified by each major class of asset.

LONG TERM INVESTMENTS;
(a) Investments in subsidiaries, controlled firms, managed modarabas and other associated undertakings; (b) Investments in listed companies and modarabas (other than listed in (a) above); (c) Investments in unlisted companies and modarabas (other than listed in (a) above); (d) Investments in immovable properties; (e) Investments in redeemable capital; (f) Investments in debentures and bonds issued by the Government, Municipal Committee or other local authority; and (g) Other investments.

Additional Disclosures: • Under each sub-head, the following shall be stated: (i) Nature and extent of the investment made; (ii) Name of the company, modaraba, authority, etc. (iii) In case of shares, classes and paid values of shares, together with terms of redemption in case of preference shares; (iv) In case of modarabas and redeemable capital, the number of certificates and the nominal value of certificates; (v) In case of debentures and bonds, the terms of redemption and the rate of interest. • Percentage of equity held by the company in an investee company or modaraba or a controlled firm or other associate undertaking, where it exceeds 10% of investee’s total equity. • The mode of valuation of investments, e.g., cost or market value, shall be stated separately. • Provisions made for diminution in the value of investments and in respect of losses of subsidiary companies shall be shown as deduction from the gross amounts of the respective sub-head.

LONG TERM LOANS AND ADVANCES:
(a) Loans and advances to subsidiary companies, controlled firms, managed modarabas and other associated undertakings; (b) Loans and advances to directors, chief executive, managing agents and executives of the company; and (c) Other loans and advances.
Additional Disclosures: • Under each sub-head, the following shall be stated: (i) Distinguishing between ‘considered good’ and ‘considered bad or doubtful’. (ii) In case of (a) above, the name of each borrower, amount of loans and advances, terms of repayment, and the particulars of collateral securities held. (iii) In case of (b) above, the amount of loans and advances, purposes for which loans and advances were made and the general terms of repayment. (iv) In case of (c) above, the name of each borrower, the amount of loans and advances, terms of repayment, and the particulars of collateral securities held. (v) Provision for bad or doubtful loans and advances as a deduction under each sub-head. • Loans and advances due for payment after a period of 12 months from the date of balance sheet shall be under the following heading separately: (i) Outstanding for the period exceeding 3 years, and (ii) Others.

LONG TERM DEPOSITS, PREPAYMENTS AND DEFERRED COSTS:
(a) Long term deposits, (b) Long-term prepayments, and (c) Deferred costs: • Preliminary expenses, • Discount allowed on the issue of shares, and • Expenses incurred on the issue of shares including commission or brokerage, to the extent not written off or adjusted.

Additional Disclosures: • In case of deferred costs, each of the items listed shall be stated separately. • In respect of each material item of prepayments and deferred cost, the amount and the basis of amortisation or writing off. • In respect of each item of deferred costs, the reasons for carrying forward such costs shall be stated. • Deferred costs shall be written off during a period not exceeding five years commencing from the financial year in which the costs were incurred.

CURRENT ASSETS:
(a) Stores and spares (separately if possible); (b) Loose tools; (c) Stock-in-trade: • Raw materials, • Work-in-progress, • Finished goods, and • Other stocks. (d) Trade debts: • • • In respect of goods sold, In respect of services rendered, and In respect of other contractual obligations.

Distinction shall be made in respect of: • • Debts considered good, and o Secured debts, and o Unsecured debts. Debts considered bad or doubtful.

(e) Loans and advances due for repayment within the period of 12 months from the date of balance sheet, showing separately: • Loans and advances considered good, and • Loans and advances considered bad or doubtful. (f) Trade deposits and short term prepayments and current account balances with statutory authorities; (g) Bills receivable; (h) Marketable securities (other than long term investments); (i) Interest accrued or Interest outstanding; (j) Other receivables (specifying the material items); (k) Tax refunds due from Governments (showing separately excise duty, custom duty, sales tax, income tax, etc.) (l) Cash and bank balances, distinguishing between:

• • •

Cash in hand, Cash in transit, Cast at bank.

Additional Disclosures: • In case of (a) (b) and (c), the following shall be stated: (i) Basis of valuation. (ii) Method of determining the Cost or NRV, e.g., ‘average cost’, ‘FIFO’, or ‘LIFO’. (iii) If there is any departure from the recognized accounting principles, the reasons shall also be stated along with financial impact. • In case of (d), (e) and (j), the following particulars shall be stated separately: (i) The aggregate amount due by directors, chief executive, managing agents and executives of the company; (ii) The aggregate amount due by associated undertakings, controlled firms and managed modarabas [names to be specified in each case]; (iii) The maximum amount of debts under each of the preceding items (i) and (ii), at any time since the date of the previous balance sheet. Such maximum amounts to be calculated by reference to month-end balance. • In case of (h), same information, as far as applicable, shall be disclosed as specified under Long Term Investments. • Provision, if any, made for diminution in the value of or loss in respect of any current asset shall be shown as deduction from the gross amount of the respective assets. • If in the opinion of the directors any of the current assets has a value less than the carrying amount, a disclosure of the fact shall be made that the directors are of that opinion together with their estimates of the realisable value and the reasons for assigning higher values in the balance sheet.

SHARE CAPITAL AND RESERVES:
Share capital and Reserves shall be shown in the balance sheet under the following subheads: (a) Share Capital: The following shall be shown in respect of share capital in the balance sheet: (i) (ii) (iii) (iv) (v) Authorised share capital Issued share capital Subscribed share capital Called up share capital Calls unpaid as a deduction from called up capital, distinguishing calls unpaid by: • Directors including chief executive, • Managing agents, • Executives, and • Others. (vi) Paid-up share capital, distinguishing between different classes of shares, e.g., ordinary shares, cumulative preference shares, redeemable preference shares, etc., and the amount paid in respect of each class; and distinguishing in respect of each class between:

• Shares allotted for consideration paid in cash, • Shares allotted for consideration other than cash, and • Bonus shares. (b) (i) Reserves, distinguishing between: Capital Reserves: • Capital Redemption Reserve, • Share Premium Account, • Profit Prior to Incorporation, or • Any Other Reserve not regarded free for distribution of dividend. (ii) Revenue Reserves: • General Reserve, • Dividend Equalisation Reserve, • Other Reserves created out of profits, and • Un-appropriated profits.
Additional Disclosures: • Any addition to or deduction from each item of reserves shall be shown in the balance sheet under the respective items. • Accumulated losses or adverse balance of Profit and Loss Account shall be shown as deduction from Capital and Reserves. • Particulars of any option on unissued shares, such as amount of option class of shares, issue price period during which option is exercisable, etc. • In the case of redeemable preference shares, the terms of redemption or conversion. • In the case of subsidiary companies the number of shares of each class held by the holding company. • Where circumstances permit, authorised, issued, subscribed and paid up capital or any two or more of them may be shown as one item.

SURPLUS ON REVALUATION OF FIXED ASSETS:
The surplus on revaluation of fixed assets shall be treated and shown as specified in section 235. Additions to, deductions from, adjustments in or applications of the surplus on revaluation, whether resulting from disposal of the revalued asset (s) or otherwise (details to be provided), shall also be staled.

REDEEMABLE CAPITAL:
The finance obtained by issue of, or representing redeemable capital shall be distinguished between(i) Secured Participatory redeemable capital; (ii) Unsecured Participatory redeemable capital; (iii) Secured Other redeemable capital; and

(iv) Unsecured Other redeemable capital. Under each class, the finance obtained shall be distinguished as obtained on the basis of or representing: (i) (ii) (iii) (iv) (v) Participation Term Certificates (PTC); Musharika arrangement; Term Finance Certificates (TFC); Long-term Running Finance utilised under Mark-up Arrangement; and Other Securities or Instruments.

Additional Disclosures: • Under each class, the following shall be shown: (i) Face value or nominal value, (ii) Nature of instrument evidencing investment of holder in such capital, (iii) All material terms and conditions of the agreement for the issue, including: • Consideration received or receivable, • Mode or basis of repayment or redemption stating the purchase price or mark up amount to be repaid, • Arrangement for sharing profit and loss, • Provision for creation of participatory reserve by the company, • The rights of the holders to convert their outstanding balance of such capital into ordinary shares and the event in which they can exercise their rights, • The details of event of defaults in payments, • Where any part of redeemable capital is secured, it shall disclose the fact that it is so secured, together with a statement of assets upon which it is secured.

DEBENTURES AND LONG-TERM LOANS:
(a) Debentures: Borrowing in respect of debentures shall be separately shown classified as: (i) (ii) Secured, together with a statement of the assets upon which they are secured, and Unsecured.

The following shall be stated in respect of each class of debentures: (i) The rate of interest; (ii) Terms of redemption or conversion; (iii) Date of redemption of debentures and/or details of the option to convert them into ordinary shares. (iv) Particulars of any redeemed debentures where the company has power to reissue; (v) Sinking fund, if any. (b) Long Term Loans: Long-term loans shall be classified as:

(i) (ii)

Secured, together with a statement of assets upon which they are secured; and Unsecured.

Under each class, the following shall be shown separately: (i) (ii) Loans from banking companies and other financial institutions; Loans from subsidiary companies, controlled firms, managed modarabas and other associated undertakings; (iii) Loans from directors (including chief executive), managing agents and (iv) Employees of the company; (v) Other loans.
Additional Disclosures: • There shall be stated in respect of each loan: (i) The rate of interest; (ii) Number of instalments or period in which the loan has to be repaid; (iii) Any other material terms.

LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE:
The aggregate amount of liabilities related to assets subject to finance lease shall be shown either as: (a) (b) Disclosing in summary from: (a) (b) which they will become due; (c) (d) (e) The interest rates used as the discounting factor; Amount of future payments and the periods in Purchase options or the terms of escalation; Financial restrictions imposed, if any; Any other material terms. The total of the minimum lease payments, or The net present value of the liabilities.

DEFERRED LIABILITIES:
Deferred liabilities shall be shown distinguished as follows: (a) (b) (c) For taxation; For pension, gratuity and other staff benefit schemes; For other deferred liabilities showing separately the material items.

Additional Disclosures: • Where any of the deferred liabilities are secured, the fact shall be disclosed that the liabilities are so secured, together with a statement of the assets, upon which they are secured. • Where any deferred liability is represented by accumulations which are to be invested in any specific manner or kept in a special deposit or account, the same shall be shown separately indicating the mode in which it is invested, deposited or kept. • Where any liability has not been fully provided for, the extent to which it has not been provided for together with the reasons thereof shall be disclosed.

LONG TERM DEPOSITS:
Long-term deposits shall be classified as: (a) (b) (c) From customers, From employees, and From others.

The following shall be disclosed in respect of long-term deposits: (i) (ii) (iii) (iv) Nature of long-term deposits, Repayment period, Rate of interest, and Other material items.

CURRENT LIABILITIES:
Current liabilities shall be classified under the following sub-heads: (a) Secured and Unsecured Short-term loans taken from: (i) Banking companies and other financial institutions; (ii) Subsidiary companies, controlled firms, managed modarabas and other associated undertakings; (iii) Directors (including chief executive) and managing agents; and (iv) Others. (b) Current portion of long-term liabilities; (c) Secured and Unsecured Short-term running finance utilised under mark-up arrangements alongwith statement of assets upon which it is secured; (d) Current portion of aggregate amount of liabilities relating to the assets subject to finance lease; (e) Deposits, (stating separately those repayable on demand and others alongwith rate of interest payable thereon); (f) Creditors; (g) Accrued liabilities; (h) Bills payable; (i) Advance payments and unexpired discounts; (j) Interest accrued on secured loans;

(k) Interest accrued on unsecured loans; (l) Profit, return or mark-up accrued / proposed on each class of Redeemable Capital; (m) Other liabilities, e.g., unclaimed dividends, unpaid dividends, etc.; (n) Provision for taxation, showing separately excise duties, custom duties, sales tax, income tax, etc.; (o) Proposed dividend; and (p) Other provisions and accruals for contingencies.

CONTINGENCIES AND COMMITMENTS:
The following shall be shown as contingencies and commitments as a footnote to the balance sheet: (a) (b) (c)
Arrears of fixed cumulative dividends on preference shares; Aggregate amount of any guarantees given by the company; The following shall be disclosed for contingent gain or loss:

(i) (ii) (iii) (d) (e) (f)

The nature of contingency; The uncertain factors that may affect the future outcome; An estimate of the amount of gain or loss.

Material estimated amounts of contracts for capital expenditure; Other contingent liabilities; and Other material commitments.

REQUIREMENTS AS TO PROFIT AND LOSS ACCOUNT
(A) REVENUES:
1. Turnover Deducting therefrom: (a) Commission paid to sole selling agents; (b) Commission paid to other selling agents; and (c) Brokerage and discount on sales. 2. Income from Investments, showing separately income from each associated undertaking and from other investments; 3. Income from Modaraba and Modaraba Certificates;

4. Income arising from Redeemable Capital, showing separately the income from each class of such capital; 5. Income by way of Interest on Loans and Advances, and Other Interest;

6. 7. 8. 9.

Profit on Sale of Investments; Profit on Sale of Fixed Assets; Income arising from Unusual Items; Income arising from Prior Period Items; and

10. Other Income, showing separately every material item and the nature of each such item.

(B) RAW MATERIALS AND FINISHED GOODS:
1. including: Value of Stock-in-Trade at year start and at year end,

(a) Raw materials and components; (b) Work-in-progress; and (c) Finished products. 2. Purchases of: (a) Raw materials and components; and (b) Finished products. or 1. 2. Cost of Raw Materials and Components Consumed; and Cost of Purchased Goods Sold

(C) EXPENSES:
1. Stores and spare parts consumed; 2. Fuel and power; 3. Salaries and wages, including: (i) (ii) (iii) 4. 5. 6. 7. Bonus, Contribution to provident fund and other funds, and Expenses on staff welfare.

Rent, municipal rates, and provincial and local rates; Insurance; Repairs and maintenance; and Patents, copyrights, trademarks, designs, royalties and technical assistance.

(D) AUDITORS’ REMUNERATION:

1. for the services rendered as auditors; and 2. for the services rendered in any other capacity.

(E) OTHER EXPENSES:
showing separately every material item and the nature of each such item. In case of donations where any director or his/her spouse has interest in the donee, the name of such director(s), their interest in the donees, and the names and addresses of all donees shall be disclosed.

(F) DEPRECIATION:
(a) The amount provided for depreciation, renewals or diminution in the value of fixed assets; (b) If such provision is not made by means of a charge for depreciation, the method adopted for making such provision shall be disclosed; (c) Where such provision is made by means of a charge for depreciation the following shall be shown under each sub-head of Fixed Assets side of Balance Sheet: (i) (ii) (iii) (iv) The value of the assets, The additions or depletions thereto, The depreciation methods, and The depreciation rates.

(d) Where no such provision has been made, the following shall be disclosed: (i) The reasons for not making it, (ii) The amount of depreciation which should have been provided, and (iii) The quantum of arrears of depreciation, if any, shall be disclosed.

(G):
1. Share of profit of holders of Redeemable Capital distinguishing the amount paid and that payable in respect of each class of such capital; 2. Amount of interest on borrowings, showing separately the amount of interest on: (i) (ii) (iii) (iv) • • • Company’s debentures, Other long-term loans, Short-term loans, and Showing by way of a note the amount of interest on borrowings from: The associated undertakings, Directors (including chief executive), and Managing agent.

3. Loss or provision for loss on Redeemable Capital; 4. Loss on sale of investments; 5. Loss on sale of fixed assets;

6. Bad debts written off, distinguishing between Trade Debts and Other Debts; 7. Provision for doubtful debts or bad debts, distinguishing between Trade Debts and Other Debts; 8. Provision for diminution in the value of investments; 9. Loss or expenses arising from Unusual Items and Provisions therefor; 10. Loss or expenses arising from Prior Period Items and Provisions therefor; 11. Provision for losses of subsidiaries, controlled firms and associated undertakings; 12. Taxation: (i) Provision for taxation on income, capital gains and other taxes, showing separately: • Provision for tax liability in respect of the profit of the financial year, and • Provision for tax liability deferred due to timing differences. (ii) Provision for deferred liability for taxation on income for the financial year may exclude the tax effects of certain timing differences when there is reasonable evidence that these timing differences will not reverse for some considerable period (at least three years) ahead. There should also be no indication that after this period these timing differences are likely to reverse; (iii) Where provision for taxation in respect of the profits of the period is reduced by the writing back of a part or the whole of the provision for deferred liability made in previous periods the amount written back shall be shown as deduction from the gross charge for taxation; and 13. Other Provisions for meeting specific liabilities, contingencies or commitments (material items to be shown separately).

(H) APPROPRIATIONS:
1. Proposed transfers to reserves; 2. Proposed dividends.

Additional Disclosures: • The profit and loss arising from ‘hedge’ and ‘forward’ contracts, trading in futures and ‘badla (contango and backwardation’ and other transactions of a similar nature, carried forward or completed by ‘meeting the difference’ and not resulting in actual purchase or sale of stock-in-trade shall be shown separately in the profit and loss account. • There shall be stated by way of a note the respective amounts included in item (G) (d) and (e) above: (i) Debts due by the directors, chief executive, managing agents and executives of the company; and (ii) • Debt due by associated undertakings. The following shall be stated by way of a note: (a) Amounts charged to financial statements in respect of the directors, chief executive, managing agents and executives (alongwith the number of directors, executives, etc.) by the company as: (i) (ii) (iii) (iv) (v) (vi) Fees; Managerial remuneration; Remuneration or commission based on net profit or turnover; Reimbursable expenses which are in nature of perquisites or benefits; Pension gratuities, company’s contribution to provident fund, superannuation and other staff funds, compensation for loss of office and in connection with retirement from office; Commission indicating the nature thereof and the basis on which such commission is payable;

(vii) Other perquisites and benefits in cash or in kind stating their nature and, where practicable, their approximate money values; and

(viii) The amounts, if material, by which any items shown above are affected by any change in an accounting policy. (b) auction, made to: o A director, or o A managing agent, or o An executive, or o A shareholder holding not less than ten percent of the voting shares of the company, or o Any associated undertaking, irrespective of the value of the assets, and o Any other person, if the book value of the asset or assets exceeds in the aggregate Rs. 5,000. The following shall be shown by way of a note: (i) (ii) (iii) (iv) (v) Particulars of the assets, Cost or valuation of the assets, Book value of the assets, Sale price and the mode of disposal (e.g., by tender or negotiation), and The particulars of the purchaser. In the case of sale of fixed assets otherwise than through a regular

o Chief executive, or

• The following information shall be disclosed in respect of transactions with associated undertaking showing separately the aggregate amount of: (i) Purchases from and sales to of goods and services; (ii) Brokerage or discount or commission together with the nature and the basis on which such brokerage discount or commission is payable; (iii) (iv) Interest indicating the nature thereof; and Any other transaction indicating the nature of every material item.

• The profit and loss account shall be so drawn up as to disclose separately the manufacturing, trading and operating results. • In the case of manufacturing concern, the cost of goods manufactured shall also be shown. • Where an undertaking has more than one line (segment) of business the working results of each such line of business should be separately given provided the turnover of such line of business exceeds 20% of the total turnover of the company. • Value of items exported during the financial year shall also be shown provided such value exceeds 20% of total turnover of the company.

Balance Sheet Note FIXED ASSETS: Tangible Intangible Total Fixed Assets LONG-TERM INVESTMENTS LONG-TERM LOANS AND ADVANCES LONG-TERM DEPOSITS, PREPAYMENTS AND DEFERRED COSTS CURRENT ASSETS: Stores and spares Loose tools Stock-in-trade Trade debts Loans and advances Trade deposits and short-term prepayments and current account balances with statutory authorities Bills receivable Marketable securities Interest accrued or outstanding Other receivables Tax refunds due from Government Cash and bank balances Total Current Assets Total Assets 3. 4. 5. ×××,××× 6. 7. 8. 9. 10. ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× 1. 2. 2007 Rs. (‘000) ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× 2006 Rs. (‘000) ×××,××× ×××,××× ×××,××× ×××,××× ×××,×××

11. 12. 13. 14.

2007 Rs. (‘000) SHARE CAPITAL: Authorised share capital Issued, subscribed and paid-up share capital RESERVES Total Shareholders’ Capital SURPLUS ON REVALUATION OF FIXED ASSETS REDEEMABLE CAPITAL DEBENTURES AND LONG-TERM LOANS LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE DEFERRED LIABILITIES LONG-TERM DEPOSITS CURRENT LIABILITIES: Short-term loans Current portion of long-term liabilities Short-term running finance under mark-up arrangements Current portion of liabilities relating to the assets subject to finance lease Creditors Accrued liabilities Bills payable Advance payments and unexpired discounts Interest accrued on secured loans Interest accrued on unsecured loans Profit, return or mark-up proposed on redeemable capital Other liabilities Provision for taxation 18. ×××,××× 19. 20. 21. ×××,××× 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× 15. 16. 17. ×××,××× ×××,××× ×××,××× ×××,×××

2006 Rs. (‘000) ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,××× ×××,×××

Proposed dividend Other provisions and accruals for contingencies Total Current Liabilities Total Shareholders’ Capital and Liabilities CONTINGENCIES AND COMMITMENTS

34.

×××,××× ×××,××× ×××,××× ×××,××× –

×××,××× ×××,××× ×××,××× ×××,××× –

35.

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