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for the Period  for the year Ended 
Ended June 30, September 30,
2005 2004
Rupees
4. LONG TERM DEPOSITS
   Central Depository Company              50,000                    50,000
             50,000                    50,000
5. UNALLOCATED PRE - PRODUCTION EXPENSES
Balance at beginning      115,332,724            131,808,827
Less: Amortized during the year   5.1      (43,249,772)            (16,476,103)
Balance as at June 30,        72,082,953            115,332,724
5.1 These are amortized over a period of five years from the date of commencement of commercial operations and the entire unallocated Pre-Production Expenses would be amortized till September 30, 2006.
6.  LOAN AND ADVANCES 
         ADVANCES : Considered Good 
          Income Tax             271,488                   271,488
          Others               51,188                    51,188
           322,676                   322,676
7.  TRADE DEPOSITS AND PREPAYMENTS 
          Guarantee margin             474,980                   474,980
           474,980                   474,980
8.  CASH & BANK BALANCES 
Cash in hand                     -                             -  
 With banks in current accounts               80,434                    81,228
             80,434                    81,228
Contd..5..
for the Period  for the year Ended 
Ended June 30, September 30,
2005 2004
Rupees
9. TRADE AND OTHER PAYABLES
Creditors for Goods .         2,498,276                4,360,267
Accrued Liabilities            819,717                3,517,750
Other Liabilities
Sales Tax Payable                     -                     156,348
With holding tax Payable            267,271                   267,271
        3,585,264                8,301,636
10. CONTINGENCIES
Text Box: Karachi port trust has filed a suit bearing No.201 of 2001 in Banking Court No.1 against National Bank of Pakistan and other claiming recovery of Rs. 73, 23,546 under section 9 of the Banking Companies (Recovery of Loan, Advances, Credit and Finance) Act XV of 1997. The ultimate result of the suit can put the Company to bear liability in case of any order / decree is passed by the said Court in favor of K.P.T Landmark Spinning Industries Ltd. has filed litigation in order to Contest the Suit/decree on invalid claim of KPT against the Bank guarantees of Rs. 3,245,000 which expired on 15th May, 1994. The matter is pending adjudication.
11. LONG TERM FINANCE - SECURED
     Habib Bank Limited  (LMM)   (Note 11.1)            900,822                   900,822
     Habib Bank Limited  (DF II) (Markup Frozen) (Note 11.2)         2,085,512              27,085,512
        2,986,334              27,986,334
Text Box: 11.1 The outstanding obligation against original financial arrangement was re-scheduled in the financial year 1998-1999 to the extent of Rs. 17,796,622 (principle and part of markup) and had been transferred to Demand Finance I account as reflected at note 11.2 The amount of Rs. 900,822 (2003: Rs. 900,822) represent mark up remaining to be re-scheduled. The company is negotiating with bank to transfer this remaining amount also to Demand Finance II. 3.2 Under the rescheduling arrangement of long term and short term finance the bank had created a new lien account by transferring the various obligations aggregating Rs. 90,744,963 to this account. the arrangement carries mark up @ 39 paisa per thousand per day: The Break-up of the account is as follows:
Text Box: 11.2 Under the rescheduling arrangements the Bank has created another new account Demand Finance II representing overdue markup aggregating Rs. 78.035 million up to August 31, 1998 on various re-scheduled loans. The further amount of overdue markup transferred to this account during the year is as under:
Contd..6..
for the Period  for the year Ended 
Ended June 30, September 30,
2005 2004
Rupees
Balance at beginning        79,708,763            107,615,534
Repayment during the year      (23,610,999)            (27,906,771)
       56,097,764              79,708,763
Current maturity shown under current liabilities
Current due        25,000,000              25,000,000
Over due        29,012,252              27,623,251
       54,012,252              52,623,251
Balance at end         2,085,512              27,085,512
Text Box: The repayment of this amount has commenced after full repayment of Demand finance I. Further, no mark up is chargeable on this account. Under the rescheduling arrangement, the yearly repayment shall not be less than Rs. 25 million. The yearly repayment had commenced from November 1, 1998 and shell be reckoned from November 1 to October 31 each year. The maximum period of repayment shall be 8 years commencing from November 1, 1998 The bank has marked lien to the extent of 0.6% on each export bill of M/S Hassan Ali Rice Export Company ( an associated undertaking) to recover the yearly repayment of Rs. 25 million and in case of shortfall the same will be arranged by the company through its own resources. further, in case of adjustments through disposal of assets of industry the same will be treated as over and above the minimum repayment of Rs. 25 million. In addition to above, the aforestated facilitated are also secured by personal guarantees of all directors and by equitable mortgage on all the property and assets of the Company.
Text Box: Legends used: - LMM : Locally manufactured machinery - DF I : Demand finance I - DF II : Demand finance II
12. LONG TERM LOANS
(Unsecured & Interest free)
From Directors 12.1.        23,427,751              23,427,751
From Associated Undertakings 12.2.      171,207,345            142,558,548
     194,635,096            165,986,299
Text Box: 12.1 Maximum balance due at the end of any month during the year is Rs 23,427,751 ( 2004 : Rs 23,427,751 ) 12.2 Maximum balance due at the end of any month during the year is Rs. 171,207,345 ( 2004 : Rs 142,558,548 ) 12.3 Terms of repayment of these loans have not been executed with the directors and associated undertakings 12.4 The above loans are unsecured and interest free.
Contd..7..
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