Pakistan
PROJECT REPORT
SUBMITTED TO:
MR. Sohail
Department of Commerce
Prepared by:
Syed Ashir Riaz 04
Junaid 40
Nadir 24
Hamza zafar 25
Zaman malik 37
1
Balance sheet:
Assets:
Non- Current Assets:
1-Property, plant and equipment:
In 2015-14 there is a difference between Property, plant and equipment is 1515540. And the
difference between is 114334 in 2014-13.
Reason:
Price increase because we purchased new assets.
Updated technology.
Maintenance and normal repairs
Major renewals and improvements.
2-Intangible Assets:
In 2015-14 there is a difference between Intangible assets is (108395) which we cant less softwares purchased in
2015 as compared to 2014 And the difference between is (97778) which we cant less softwares purchased in 2014-
13.
Reason:
Price increase because we purchased new softwares.
Useful life in 2015 is 5, 2014 is 6, 2013 7.
Reasons:
Loan to executive and employees
Loan to employees for hoses and car.
2
Recoverable loan duration is 3-5 years.
Reasons:
Security deposits.
Prepaid rent.
Reasons:
We give more pension fund.
Non Management Staff Gratuity Fund
Medical plan.
Reasons:
Spare ratio is high because we purchased more material and spares and higher ratio of
storage.
8-Stock in trade:
In 2015-14 there is a difference between Stock and trade is (462786) as compared to 2014. And
the difference between in 2014-13 676949 which is less as compared to 2013.
Reasons:
Raw and packing materials.
Stock in trade held by third party.
9- Trade Debts:
In 2015-14 there is a difference between Trade debts is 351111 as compared to 2014. And the
difference between in 2014-13 116634 which is high as compared to 2013.
Reasons:
3
Considered good for credit basis.
Reasons:
More Rent.
Cost of Advertisement is high.
Others.
Reasons:
current accounts
Saving account.
Reasons:
Un-appropriate profit OR save for future contingency.
2-Resaves:
There is difference between 2015-14 is 472263 which is high as compared to 2014. As well as
there is difference between 2014-13 is 148588whichever is high as compared to 2013.
Reasons:
We cannot distribute all dividends.
We retained for future contingency.
Liabilities:
Non- current liabilities:
4
3- Deferred tax:
There is difference between 2015-14 is 112695 which is high as compared to 2014. As well as
there is difference between 2014-13 are (45697) whichever less as compared to 2013.
Reasons:
Taxable income is less than the income shown in the income statement.
The cost of depreciation is the main reason for the difference in the profit as per
management income statement and taxable income statement.
Reasons:
Give high ratio of benefit to employees in 2013. The Company operates various post-
employment schemes, including both defined benefit and defined contribution plans.
Reasons:
Pay height amount to creditors
More bank payables.
5
Income statement:
1- Sale:
There is difference between 2015-14 is 4270808 which is high as compared to 2014. As well as
there is difference between 2014-13 is 5169586 whichever is higher as compared to 2013.
Sales to domestic customers in Pakistan are 99.60% (2013: 99.63%) and to customers outside
Pakistan
is 0.40% (2013: 0.37%) of the revenue during the year.
Reasons:
Sale products
Sales products on credit
Cost increases
2- Cost of Sales:
There is difference between 2015-14 is 1245753 which is high as compared to 2014. As well as
there is difference between 2014-13 are 3167340 whichever is higher as compared to 2013.
Reasons:
Raw and packing materials consumed
Staff costs
Utilities
Depreciation
Rent, rates and taxes
Travelling and entertainment
Expenses on information technology
Other expenses
Staff costs.
3- Distribution Cost:
There is difference between 2015-14 is 855135 which is high as compared to 2014. As well as
there is difference between 2014-13 is 1927814whichever is higher as compared to 2013.
Reasons:
Advertisement and sales promotion
technical fee
Utilities
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Depreciation
Repairs and maintenance
Rent, rates and taxes
Stationery and office expenses.
4- Administrative Expenses:
There is difference between 2015-14 is (59581) which is low as compared to 2014. As well as
there is difference between 2014-13 are (204550) whichever is low as compared to 2013.
Reasons:
Raw and packing materials consumed
Staff costs
Utilities
Depreciation
Rent, rates and taxes
Travelling and entertainment
Expenses on information technology
Other expenses
Staff costs.
Auditor remuneration
Reasons:
Donation
Worker welfare fund
Worker participation fund
6-Other income:
There is difference between 2015-14 is (68366) which is less as compared to 2014. As well as
there is difference between 2014-13 are 519180 whichever is high as compared to 2013.
Reasons:
Dividend income
Return on saving account
Sale scrap
Profit on disposal of property, plant and equipment
7- Finance cost:
7
There is difference between 2015-14 is 5168 which is more as compared to 2014. As well as
there is difference between 2014-13 are 63365 whichever is high as compared to 2013.
Reasons:
Short term borrowings
Bank charges
Exchange loss
8- Taxation:
There is difference between 2015-14 is 1122809which is more as compared to 2014. As well as
there is difference between 2014-13 are (71053) whichever less as compared to 2013.
Reasons:
Deferred tax
Reasons:
Due to more interest received.
More sales and high cost
Using indirect method
2-Depreciation:
There is difference between 2015-14 is 176012 which is high as compared to 2014. As well as
there is difference between 2014-13 are 125732whichever high as compared to 2013.
Reasons:
Due to change in depreciation method
Addition in fixed assets
Reasons:
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Sale of computers softwares
Change in technology
Reasons:
Due to change any part of PPE
Sale of PPE on profit
5-Dividend Income:
There is no change in 2015-14-13.
Reasons:
Due to more Short term borrowing and investing marketable securities
As a result, received more makeup.
7- Provision of Written-off:
There is difference between 2015-14 is (90131) which is less as compared to 2014. As well as
there is difference between 2014-13 are 82067 whichever high as compared to 2013.
Reasons:
Due to sale of fixed assets in 2015
Due to purchase of assets in 2014.
Reasons:
The ratio of benefit is high in 2015 because of give high retirement, future plan benefits.
Employment Scheme
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In 2014 the ratio of benefit is low because of not employee is retired or less employment
scheme.
Reasons:
We deposited less amount in 2015on saving account because of low interest.
We deposited high amount in 2014 for 10 years on saving account because of High interest.
Reasons:
The value of sale of stores is reduced because out of fashion.
Due to sale of stores and spares.
Reasons:
Stock in trade is reduced because of low demand
Out of fashion
Reasons:
Increase in trade debts because Sale of assets on credit 2015
Decrease in trade Debts because of cash is received from debtors.
10
There is difference between 2015-14 is (82053) which is high as compared to 2014. No change
in 204-13.
Reasons:
Increase in accumulated sales tax receivables
Reasons:
Take more loan in 2015-14
Take more advances from commercial banks 2015-14-13
Reasons:
Trade and margin deposits Prepayments, Rent, Advertisement, Others.
Reasons:
Receivable from related parties:
Defined contribution plans
Defined benefit plans
Associated undertakings
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Reasons:
Creditors
Bills payable
Forward foreign exchange contract
Accrued liabilities
Dividend payable.
Reasons:
We take more borrowing
As a result give more interest
Reasons:
The company receive more cash as a result give more tax.
Reasons:
We give more pension fund.
Non Management Staff Gratuity Fund
Medical plan.
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Reasons:
Take loan with a specific amount of interest in 2015 as compared to 2014
Take more loans in 2014 as compared to 2013.
Reasons:
Purchased more Purchase of property, plant and equipment in 2015-14
Reasons:
Profit for selling the of property, plant and equipment in 2015
But loss on sale of property, plant and equipment in 2014.
3-Purchase of intangibles assets:
There is no difference between 2015-14. As well as there is a purchased of intangible assets in
2014 is 9944.
Reasons:
We deposit fewer amounts in 2015 as compared to 2014.
We deposit more amount in 2014 as compared to 2014
As a result is increase or decrease in 2015-14 and 2013.
13
There is difference between 2015-14 is 2125277which is high as compared to 2014. As well as
there is difference between 2014-13 are (1826428) whichever less as compared to 2013
Reasons:
We issued more shares in 2015 as a result paid more dividends in 2015 as compared to 2014
and 2013.
Reasons:
We make less cash in 2015 as compared to 2014
But we make more cash in 2014 as compared to 2013.
Reasons:
High current accounts
savings accounts
deposit account
High Short term borrowings
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Statement of Change in equity:
Dividend
First interim dividend on ordinary
shares ------------------------ ------------------------ ----------------------
@ Rs. 51.24 per share 2015-14-13 --
- Second interim dividend on ordinary ------------------------ ------------------------
shares ----------------------
@ Rs. 123.25 per share --
- Third interim dividend on ordinary
------------------------ ------------------------
shares
@ Rs. 165.90 per share
----------------------
--
1-Share capital:
1.1. Issued, subscribed and paid in capital (RS):
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Reasons:
The balance of 2015-14-13 should be same.
1.3. Contingency:
Reasons:
The balance of 2015-14-13 should be same.
1.4. Dividend:
This shows that we give high dividend rate in 2015 then 2014 but give high dividend in 2013
and ratios should be same
1.5-Interim dividend:
Interim dividend 2015 2014 2013
(RS) (RS) (RS)
1-First interim dividend @346.00 per @346 per share @51.24 per
ordinary shares share share
@nil
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2-2nd interim dividend ordinary @nil @123.25
shares @nil
@nil @165.90
rd
3-3 interim dividend ordinary
shares
1.6- Contingency:
CONTIGENCY 2015 2014 2013
(RS) (RS) (RS)
In- last
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The market price of 2015 is high because it give more ratio of dividend as result their profit
is high as compared 2014-13
Auditor Responsibility:
We conducted our audit in accordance with the auditing standards in Pakistan. 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.
Opinion:
In our opinion and to the best of our information and according to the explanations given to
us. So, manager are required to give true and fair view (Unqualified Report)
Signature:
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Taseer Hadi & Co.
Chartered Accountants
Mohammad Mahmood Hussain
Karachi
Dated: March 4, 2016
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