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22. Remuneration of Chief Executive, Directors, and Executives

The Chief Executives and Directors of the Company are not being paid any remuneration. There are no executives/administrative staff in the Company.

23. Financial Instruments and related disclosures

23.1 Financial Assets and Financial Liabilities

The company‘s exposure to interest rate risk and the effective rates on its financial assets and Liabilities are summarized as follows:

(R U P E E S)

	Mark-up/Interest bearing				Non-Interest/Mark-up bearing
		Maturity		Total	Maturity		Sub Total	Total
Financial Assets		Upto one year	More than one year		Upto one year	More than one year		June 30, 2005
Long term Deposit Loan and Advances Deposits,and Prepayments		-	-	-	50,000 51,188 474,980	-	50,000 51,188 474,980	50,000 51,188 474,980
Cash and Bank balances		-	-	-	80,434	-	80,434	80,434
Total 2005 Total 2004		-	-	-	656,602 556,208	-	656,602 556,208	656,602 556,208
Financial Liabilities
Long Term Finance Long Term Loans Trade and Other Paybles					54,012,252 3,317,993	2,986,334 194,635,096	56,998,586 194,635,096 3,317,993	56,998,586 194,635,096 3,317,993
Total 2005 Total 2004		-	-	-	57,330,245 61,122,687	197,621,430 193,972,633	254,951,675 255,095,320	254,951,675 255,095,352

23.2 Effective interest rates for the monetary financial liabilities are mentioned in the respective notes to the accounts.

Contd..10..

23.3 Credit Risk and concentration of credit risk

Credit risk is the risk that one party to a financial instrument will fail to discharges an obligation and cause the other party to incur a financial loss. The company attempts to control credit risk by monitoring credit exposures and limiting transactions with specific counterparties Concentrations of credit risk arise when a number of counterparties are engaged in similar business activates, or activities in the same geographic region, or have similar economic features that would cause their ability to meet contractual obligation to be similarly affected by change in economic, political or other condition. Concentrations of credit risk indicate the relative sensitivity of the company performance to developments affecting a particular industry of geographic location.

The company is not materially exposed to credit risk.

23.4 Fair value of financial instruments

Fair value is the amount for which assets could be exchange, or liability settled, between knowledgeable willing parties in an arm's length transaction. Consequently differences can arise between carrying values and the fair value estimates.

Underlying the definition of fair value is the presumption that the company is a going concern with out any intention or requirement to curtail materially the scale of its operations or to undertake a transaction on adverse terms.

The estimated fair value of all financial assets and liabilities is considered not significantly different from book value as shown in these financial statements.

23.5 Foreign Exchange Risk Management

Foreign Currency risk arises mainly where receivables and payables exist due to transactions with foreign undertakings. In appropriate cases, the management takes out forward contracts to mitigate this risk.

23.6 Liquidity Risk

Liquidity risk reflects the company’s inability to raise/generate funds in order to meet its requirements/commitments. The management monitors the liquidity and cash flow position of the company in order to forecast the same.

24. Date of Authorization for issue

These financial statements have been authorized for issue on September 29, 2005 by the Board of Directors of the Company.

25. General

i) Figures have been rounded-off to the nearest of rupee.

ii) Certain Prior year’s figures have been re-arranged for the purpose of Comparison.

iii) Previous year’s figures are for the whole year current period’s figures are for the nine months.

AKBER ALI HASHWANI AMIN A. HASHWANI

(Chief Executive) (Director)

Karachi

Dated:29^th September 2005

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