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LANDMARK SPINNING INDUSTRIES LIMITED

NOTES TO THE ACCOUNT (UN – AUDITED)

FOR THE PERIOD ENDED DECEMBER 31, 2005

 

  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 from 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 result. 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 have been reviewed by the auditors as required by the Code of Corporate Governance 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 half yearly Financial Statements are the same as those applied in the preparation of the annual financial statement of the company for the proceeding period  ended June 30, 2005

 

  1. Amortization of Unallocated Pre-Production Expenses

The Company used to amortize Un-Allocated Pre-Production expenses   over a period of ten years with effect form the date of commencement of commercial operation; However , effective from the financial year end  September 30,2004 the  company has adopted the policy for the amortizing of  the same over a period of five years since the same had first been charged.During the period under review the company has charged half(1/2) 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 year.

 

       7. Pre-Production Unallocated Expenditures

             During the 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 the same has been adjusted with the                          unallocated  Pre-production Expenses as the mark up had been debited to the same.

 

 

  1. Date of Authorization for issue

These Financial Statement were authorized for issue on February  27  , 2006 by the Board of Directors of the Company.

 

9. GENERAL:

Figures have been rounded off to the nearest of Rupee.

 

 

 

AKBER ALI HASHWANI                                                                                    AMIN A . HASHWANI

                       Chief Executive                                                                                                        Director

 

Place: Karachi

Dated: FEBRUARY   27     , 2006

 

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