NAVANA REAL ESTATE LIMITED - Dhaka Stock Exchange

Issuer: Navana Real Estate LimitedIssue Manager: ICB Capital Management Limitedof completion method in the manner explained in Bangladesh Accounting Standard 11“Construction Contracts”.2.18 Employees benefita) Provident fund schemeThe company operates a Contributory Provident Fund Scheme for its permanentemployees (who are interested to contribute to the Scheme). The company’scontribution to the fund is charged off as revenue expenditure during the year to whichthe contribution relates. The fund is operated by a Board of Trustees. All confirmedemployees of the company are contributing 10% of their basic salary or Tk. 2,500/-whichever is lower as subscription to the fund. The company contributes equal amountof the employees’ contribution. Interest earned from the investment is credited to themembers account on yearly basis.b) Gratuity schemeCompany provides unfunded gratuity benefit scheme. The company has been so longproviding @ one month’s basic pay. The company provide gratuity in actuarial basis asper BAS 19. The accumulated amount provided so far is equal to the amount which isrequired to pay off the gratuity of all the employees were they leave the company as ondate of statement of financial position.2.19 Cash and cash equivalentsCash in hand and cash at banks have been considered as cash and cash equivalents forthe preparation of these financial statements, which were held and available for use bycompany without any restriction and there was insignificant risk of changes in value ofthe same.2.20 Statement of cash flowsStatement of cash flows is prepared principally in accordance with BAS-7 “Cash FlowStatement” and the cash flows from the operating activities have been presented underdirect method.2.21 Earnings per shareThe company calculates earnings per share (EPS) in accordance with BAS 33. Basicearnings per share have been calculated taking a capital base of 3,00,000 OrdinaryShares of Tk. 1000/- each as issued up to August 31, 2010 which is shown in the faceof the statement of comprehensive income.2.22 Events after the reporting periodIn compliance with the requirements of BAS 10: Events after the reporting period, postbalance sheet events that provide additional information about the company's positionat the balance sheet date are reflected in the financial statements and events after thebalance sheet date that are not adjusting events are disclosed in the notes whenmaterial.2.23 Segmental reportingNo segmental reporting is applicable for the company as required by BFRS 14: SegmentReporting as the company operates in a single industry segment and within a singlegeographical segment.2.24 Financial assets & liabilitiesFinancial assets and liabilities are recognized on the statement of financial position datewhen the entity has become a party to a contractual provision of the instruments.a) ReceivablesPage- 36