NAVANA REAL ESTATE LIMITED - Dhaka Stock Exchange

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Issuer: Navana Real Estate LimitedIssue Manager: ICB Capital Management LimitedNotes to the financial statementsFor the year ended 31 August 20101.00 Corporate history of the reporting entity1.01 Legal statusNavana Real Estate Ltd (the Company) was incorporated in 1996 as a private companyunder the Companies Act 1994.The registered office of the company is located at 125/A, Motijheel Commercial Area,Dhaka 1000, Bangladesh.1.02 Principal activitiesThe main objectives of the Company are to carry out the business of real estate byerecting building and structure and selling and hand over of the erected building andstructure, maintenance as post sales services and contract signing thereof and thecompany is also engaged in purchasing land and developing the same for urban housingand selling to the different income group and carry out other related business asmanagement of the company deemed think appropriate and proper.2.00 Significant accounting policies and basis of preparation of the financialstatements2.01 Corporate financial statements and reportingThis comprises Statement of financial position, statement of comprehensive income,statement of changes in equity, statement of cash flows, notes and explanatorymaterials covering accounting policies.This is prepared under the historical cost convention and in accordance with therequirements of the Companies Act, 1994, the Securities and Exchanges Rules 1987and other applicable laws, rules & regulations and the International AccountingStandards (IAS) and International Financial Reporting Standards (IFRS) adopted by theInstitute of Chartered Accountants of Bangladesh (ICAB) as well as those standards,disclosures recommended by IASs and as applicable to this Company.The Board of Directors is responsible for preparing and presenting the financialstatements including adequate disclosures, who approved and authorized for issue ofthis financial statements.The preparation of the financial statements in conformity with the BangladeshAccounting Standards (BASs) requires Board of Directors to make estimates andassumptions that affect the reported amounts of revenues and expenses, assets andliabilities at the date of the reporting period. Due to the inherent uncertainty involved inmaking estimates, actual result reported could differ from those estimates.2.02 Principal accounting policiesThe specific accounting policies selected and applied by the company’s directors forsignificant transactions and events that have material effect within the framework ofBAS-1 “Presentation of Financial Statements”, in preparation and presentation offinancial statements have been consistently applied throughout the year and were alsoconsistent with those used in earlier years.For a proper understanding of the financial statements, these accounting policies areset out below in one place as prescribed by the BAS-1 “Presentation of FinancialStatements”. The recommendations of BAS-1 relating the format of financial statementswere also taken into full consideration for fair presentation.Page- 32
Issuer: Navana Real Estate LimitedIssue Manager: ICB Capital Management Limited2.03 Fundamental accounting concepts/assumptionThe financial statements have been prepared based on going concern, consistencyconcept, accrual concept and such other convention as required by BAS-1 for fairpresentation of financial statements.2.04 Going concernThe company has adequate resources to continue in operation for the foreseeablefuture. For this reasons the directors continue to adopt going concern basis in preparingthe accounts. The current credit facilities and resources of the company providessufficient fund to meet the present requirements of its existing business.2.05 Corporate accounting standards practicedThe following BAS is applicable to the financial statements for the year under review:BAS 1BAS 2BAS 7BAS 8BAS 10BAS 11BAS 12BAS 16BAS 17BAS 18BAS 19BAS 23BAS 24BAS 33BAS 34BAS 36BAS 37BAS 38BAS 402.06 Regulatory and legal compliancePresentation of financial statementsInventoriesCash flow statementAccounting policies, changes in accounting estimates and errorsEvents after the reporting periodConstruction contractsIncome taxesProperties, plant and equipmentLeasesRevenueEmployee benefitsBorrowing costsRelated party disclosuresEarnings per shareInterim financial reportingImpairment of assetsProvisions, contingent liabilities and contingent assetsIntangible assetsInvestment propertyThe company complied with requirement of the following regulatory and legalauthorities:a) The Companies Act, 1994;b) The Securities and Exchange Rules, 1987;c) The Securities and Exchange Ordinance, 1969;d) The Securities and Exchange Commission Act, 1993e) The Securities and Exchange (Public Issues) Rules, 2006;f) The Income Tax Ordinance, 1984;g) The Value Added Tax Act, 1991;2.07 Reporting periodThe period of the financial statements covers from 1 st September to 31 st Augustconsistently.2.08 Functional and presentational (reporting) currencyThe financial statements are prepared and presented in Bangladesh Currency (Taka),which is the company's' functional currency.2.09 Recognition of property, plant & equipmentThese are capitalized at cost of acquisition and subsequently stated at cost lessaccumulated depreciation. The cost of acquisition comprises of purchase price, includingimport duties and non-refundable taxes and any directly attributable cost of bringingPage- 33
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NAVANA REAL ESTATE LIMITED - Dhaka Stock Exchange

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