SALMAN TRADERS

STATEMENT OF FINANCIAL POSITION

AS AT JUNE 30, 2022

2022 2021
Note (Rupees) (Rupees)

ASSETS

NON-CURRENT ASSETS
Property, Plant and Equipment 3 2,437,436 2,397,504
(at cost less accumulated depreciation)

CURRENT ASSETS
Inventory 4 10,945,470 8,743,436
Trade Receivables 8,166,831 5,745,220
Advances, Securities and Prepayments 5 5,382,762 4,929,663
Cash and Bank Balances 6 5,013,563 4,524,028
29,508,625 23,942,347

31,946,061 26,339,851

CAPITAL AND LIABILITIES

CAPITAL ACCOUNT

Proprietors Capital Account 12,000,000 12,000,000

Retained Earnings 7 19,143,151 13,612,637
31,143,151 25,612,637

CURRENT LIABILITIES

Creditors, Accrued Expenses and other Liabilities 8 802,910 727,214

802,910 727,214

31,946,061 26,339,851

The annexed notes form an integral part of these accounts

PROPRIETOR
 SALMAN TRADERS
STATEMENT OF INCOME
FOR THE YEAR ENDED JUNE 30, 2022

2022 2021
Note (Rupees) (Rupees)

Sales 133,233,470 122,778,434

Cost of Sales 9 106,482,036 98,184,939
GROSS PROFIT 26,751,434 24,593,495

OPERATING EXPENSES

Administrative Expenses 10 2,304,540 2,032,775

Financial charges 11 16,339 15,823
2,320,879 2,048,598
OPERATING PROFIT FOR THE YEAR 24,430,556 22,544,897

Other Income - -
NET PROFIT BRFORE TAX 24,430,556 22,544,897

Taxation 5,995,506 5,525,030

NET PROFIT AFTER TAX 18,435,050 17,019,867

The annexed notes form an integral part of these accounts

PROPRIETOR
 SALMAN TRADERS
CASH FLOW STATEMENT
FOR THE YEAR ENDED JUNE 30, 2022

2022 2021
(Rupees) (Rupees)
Cash Inflow/Outflow from Operating Activities
Profit before adjustments 18,435,050 17,019,867

Adjustments of non cash items:

Depreciation 327,313 322,000
327,313 322,000
Operating profit before working capital changes 18,762,363 17,341,867

Changes in Working Capital:

(Increase)/Decrease in Current Assets
Inventory (2,202,034) (1,704,488)
Trade Receivables (2,421,610) (1,397,721)
Advances, Securities and Prepayments (453,099) (515,419)
(5,076,743) (3,617,628)
Increase/(Decrease) in Current Liabilities
Creditors, Accrued Expenses and other Liabilities 75,695 67,519
75,695 67,519

Taxation - -
- -

Net Cash Flow from Operating Activities 13,761,315 13,791,758

Cash Inflow/(Outflow) from Investing Activities

Purchase of Fixed Assets (367,245) (302,770)
Net Cash used in Investing Activities (367,245) (302,770)

Cash Inflow/(Outflow) from Financing Activities

Capital Introduced - -
Drawings (12,904,535) (12,764,901)
Net Cash used in Financing Activities (12,904,535) (12,764,901)

Total Cash Inflow / (Outflow) during the Year 489,535 724,087

Cash and Cash Equivalent at the Beginning of the Year 4,524,028 3,799,941

Cash and Cash Equivalent at the End of the Year 5,013,563 4,524,028

PROPRIETOR
 SALMAN TRADERS
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED JUNE 30, 2022

1 STATUS AND NATURE OF BUSINESS

"SALMAN TRADERS" is a sole proprietorship engaged in trading business.

2 SIGNIFICANT ACCOUNTING POLICIES

The following accounting policies have been adopted in preparation of theses financial statements:

2.1 Accounting Convention

These financial statements have been prepared under the historical cost convention expected as other wise
stated in the respective policies and notes given hereunder.

These financial statements have been prepared in Pakistani Rupees, which is the company's functional
currency. All financial informations presented in Rupees has been rounded to the nearest Rupee, except
when otherwise indicated.

2.2 Significant Accounting Estimates and Judgements

The preparation of financial statements in conformity with the Accounting and Financial reporting
Standards for Medium- Sized entities issued by the Institute 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 assumption
are based on historical experiences and various other factors that are belived to be reasonable under the
circumstances, the result of which form the basis of making the judgments about carrying values of assets
and liabilities that are not readily apparent form other sources. Actual results may differ from these
estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period in which estimates are revised.

Significant areas requiring use of management estimates in these financial statements relate to the useful
life of depreciable, provision for doubtful receivable and slow moving inventory. However, assumptions
and judgments made my management in the application accounting policies that have significant effect on
the financial statements are not expected to results in material adjustment to the carrying amounts of assets
and liabilities in the next year.

2.3 Property, Plant and Equipment

These are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises
acquisition and other directly attributable costs. The asset is capitalized on the basis of probability of inflow
of future economic benefits and the reliability of the cost measurement.

Depreciation is provided by using reducing balance method and charged to Statement of Comprehensive
Income to write off the depreciable amount of each asset over its useful life at the rates specified in the note
3. Depreciation is calculated on the annual basis. Full year depreciation is charged in the year of acquisition
and no depreciation is charged in the year of disposal.

Maintenance and normal repairs are charged to income as and when incurred; major renewals and
improvements are capitalized. Gains or losses on disposal or retirement of fixed assets, if any are taken to
the Statement of Comprehensive Income for the year.
 The organization reviews the useful life and residual value of property, plant & equipment on regular basis.
Any change in estimates in respect of future years might affect the carrying value of the asset along with the
depreciation amount.

2.4 Trade and other receivables

Trade and other receivables are carried at original invoice amount less provision for impairment. Known
bad debts are written off, while provisions are made against debts considered doubtful based on review of
outstanding amount at the end of the year.

2.5 Trade and other payable

Liabilities for trade and other payables are carried at cost which is the fair value of the consideration to be
paid in the future for goods and services received.

2.6 Revenue recognition

Revenue is recognized to the extent that the economic benefits will flow to the company and revenue can be
reliably measured. Revenue is recognized at fair value of consideration received or receiveable.

2.7 Borrowing Cost

Borrowing cost are recognized as an expenses in the period they are incurred. Borrowing costs that are
directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as a
part of the asset.

2.8 Provision
Provisions are recognized when the company has a present legal or constructive obligation as a result of
past events, it is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation and a reliable estimate can be made. Provisions are reviewed at each balance sheet date
and adjusted to reflect the best estimates.

2.9 Cash and cash equivalents

Cash and cash equivalents comprise cash in hand and at banks. Cash equivalents are highly liquid
investments that are readily convertible to known amounts of cash and which are subject to insignificant
risk of changes in value.
3 PROPERTY, PLANT AND EQUIPMENT

C O S T D E P R E C I A T I O N W.D.V.

RATE %
PARTICULARS AS AT ADDITIONS/ AS AT UP TO FOR THE UP TO AS AT
01-07-2021 (DELETION) 30-06-2022 01-07-2021 YEAR 30-06-2022 30-06-2022

Office Equipment 892,538 28,189 920,727 10 167,376 75,335 242,711 678,015

Computer & Accessories 741,152 95,590 836,742 15 195,381 96,204 291,585 545,157
Furniture & Fixtures 998,137 173,130 1,171,267 10 176,637 99,463 276,100 895,167
Other Assets 412,888 70,336 483,225 15 107,816 56,311 164,127 319,097

2022 (Rupees) 3,044,715 367,245 3,411,960 647,211 327,313 974,524 2,437,436

2021 (Rupees) 2,741,945 302,770 3,044,715 325,211 322,000 647,211 2,397,504

3.1 Depreciation for the year has been allocated as under:

2022 2021
Rupees Rupees
Cost of Sales 261,851 257,600
Operating Expenses 65,463 64,400
327,313 322,000
 SALMAN TRADERS
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED JUNE 30, 2022

2022 2021
Note (Rupees) (Rupees)

4 INVENTORY
Stock in Trade 10,945,470 8,743,436
10,945,470 8,743,436

5 ADVANCES, DEPOSITS & OTHER RECEIVABLES

Staff advances 297,847 266,935
Advance to Supplier 4,455,208 4,069,839
Security and Advances 629,707 592,888
5,382,762 4,929,663

6 CASH AND BANK BALANCES

Cash and Cash Equivalents 5,013,563 4,524,028

5,013,563 4,524,028

7 RETAINED EARNINGS

Opening Balance 13,612,637 9,357,670

Profit for the year 18,435,050 17,019,867
32,047,686 26,377,537

Less: Drawings (12,904,535) (12,764,901)

19,143,151 13,612,637

8 CREDITORS, ACCRUED EXPENSES & OTHER LIABILITIES

Sundry Creditors 610,865 557,817

Accrued Expense 192,045 169,398
802,910 727,214

9 COST OF SALES
Opening Balance 8,743,436 7,038,947
Purchases 103,049,428 94,962,979
Total Stock 111,792,863 102,001,927

Less: Closing Stock (10,945,470) (8,743,436)

Stock Sold 100,847,393 93,258,491
Labor Charges 1,746,050 1,535,124
Transportation Charges 1,364,795 1,211,536
Other direct cost 2,196,484 1,922,188
Depreciation 3.1 327,313 257,600
106,482,036 98,184,939
 SALMAN TRADERS
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED JUNE 30, 2022

2022 2021
Note (Rupees) (Rupees)

10 ADMINISTRATIVE EXPENSES

Staff Salaries and Wages 665,563 624,942

Communication Charges 24,780 23,509
Utilities 156,676 152,839
Travelling and conveyance Charges 875,001 715,455
Printing and stationery 115,856 94,116
Legal and Professional fee 45,461 36,930
Audit fee 23,670 19,228
Entertainment 5,427 4,408
Miscellaneous Expense 326,643 296,948
Depreciation 3.1 65,463 64,400
2,304,540 2,032,775

11 FINANCIAL EXPENSES

Bank Charges & Commission 16,339 15,823

16,339 15,823

12 APPOINTMENT OF AUDITORS
The auditors were appointed on the request of proprietor to conduct a special audit. Accordingly, they did not
act in capacity of statutory auditors

13 AUTHORIZATION OF FINANCIAL STATEMENTS

These financial statements have been authorized for issue by the management of the company as on Month 14,
2022.

14 GENERAL
The auditor's appointment was made subsequent to the closing date, due to which physical verification of
--
cash in hand and inventory could not be carried out by us at year end.

-- Figures have been rounded off to the nearest rupee.

Figures of the previous year have been re-arranged and regrouped whereever necessary for the purpose of
--
comparison.
PROPRIETOR
Bank Credits
Financial year 2022
Bank Name
Account No

Less Add
Credits SDR/CDR Net Credit Sale Total
- - - - -
 Bank Credits
Financial year 2021
Bank Name
Account No

Less Add
Closing Balance Credits SDR/CDR Net Credit Sale
18,870,713 - - - -
 Bank Credits
Financial year 2020
Bank Name
Account No

Less
Total Closing Balance Credits SDR/CDR Net
- - - -
 Add
Credit Sale Total Closing Balance
- -