LANDMARK SPINNING INDUSTRIES LIMITED

NOTES TO THE ACCOUNT ( UN – AUDITED )

FOR THE NINE MONTHS  ENDED MARCH 31,2006

 

  1. Nature and Status of Business

The company was incorporated in Pakistan as a Private Limited Company on October 21; 1991 ad was converted into a Public limited Company on April 30;1992. The Company is Listed at Karachi & Lahore Stock Exchanges.

 

 

The Company Commenced its commercial operations in October 1, 2001 after reactivation of plant which remained idle for seven years. However, the company has suspended its production on November 29, 2002 to forestall the recurring losses until the market trend become conducive for positive results. The management feels that this stoppage is temporary and the production will be expected to commence in future.

 

  1. Statement of Compliance

These interim financial statement have been prepared in accordance with the requirement of international Accounting Standard-34(IAS-34) ”Interim Financial Reporting “and being submitted to the shareholders under section 245 of the Companies Ordinance ,1984.

 

  1. Summary of Significant Accounting Policies

The Accounting Policies adopted for the preparation of 3rd Quarterly Financial Statements are the same as those applied in the preparation for the proceeding year annual Financial Statements of the Company for the year ended June 30, 2005

 

  1. Amortization of Unallocated Pre-Production Expenses

The Company used to amortize this Un-Allocated Pre-Production expenses over a period of ten years form the year of commencement of commercial production; however , effective from the financial year end  September 30,2004 the  company has adopted the policy for the amortizing the same over a period of five years since the same had first been charged. During the period under review the company has charged  3 / 4th of the annual amortized value in the profit and loss account.

 

 

 

 

 

 

 

  1. Depreciation

No. Depreciation on Assets except a Hut at Sandspit (Lease hold) & Vehicles has been charged during the period as their has been no production activity and the same has also been mentioned in note no. 1 of these financial statement.

 

  1. Contingencies

There is no significant change in Contingencies during the period.

 

  1.  Pre – Production Unallocated Expenditures

During the nine months period the Loan of Habib Bank limited (Comprise of interest / markup) shown under long term loan amounting to Rs. 56,998,586 has been Settled by the Bank and same has been adjusted with the unallocated preproduction expenses as the markup had been debited to the same

 

  1. Date of Authorization for issue

These Financial Statement were authorized for issue on April 28, 2006  by the Board of Directors of the Company.

 

  1. GENERAL:

9.1  Figures have been rounded off to the nearest of Rupee.

 

 

 

 

AKBER ALI HASHWANI                                                              AMIN A .HASHWANI

                     Chief Executive                                                                                          Director

 

 

Place: Karachi

Dated:April 28,2006