DAWOOD LAWRENCEPUR LIMITED - Lahore Stock Exchange

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3.2 Intangible assets3.2.1 SoftwaresAcquired computer software licenses are capitalized on the basis of the costs incurred to acquire and bring to usethe specific software. Software is stated at cost less accumulated amortization and accumulated impairmentlosses, if any. These are amortized using the 'Straight Line Method' from the month the software is available foruse upto the month of its disposal at the rate mentioned in note 5.1. The residual values, useful lives andamortization method are reviewed and adjusted, if appropriate, at each balance sheet date. Refer note 5.2 inrespect of changes in accounting estimates with regard to the intangible assets.3.3 Financial instrumentsAll financial assets and liabilities are recognized at the time when the Company becomes a party to the contractualprovisions of the instrument. Financial assets include trade debts, other receivables, loans, advances and deposits. Theseare recognized initially at cost plus directly attributable transaction costs, if any, and subsequently measured at fair valueor amortized cost using effective interest rate method as the case may be less provision for impairment, if any. Exchangegains and losses arising in respect financial assets or liabilities in foreign currency are added to the respective carryingamounts.3.4 InvestmentsThe Company recognises an investment when it becomes a party to the contractual provisions of the instrument. Aregular way purchase of financial assets is recognised using trade date accounting. From this date any gains and lossesarising from changes in fair value of the financial assets or financial liabilities are recorded. Financial liabilities are notrecognised unless one of the parties has performed its part of the contract or the contract is a derivative contract.3.4.1 Investments in subsidiaries and associated companiesInvestments, in subsidiaries where control exist, and associates where significant influence can be established areinitially stated at cost. Subsequently, the recoverable amount is estimated to determine the extent of impairmentlosses, if any, and carrying amounts are adjusted accordingly. Impairment losses are recognized as expense inthe profit and loss account. Where impairment losses subsequently reverse, the carrying amounts of theinvestments are increased to the revised recoverable amounts but limited to the extent of initial cost ofinvestments. A reversal of impairment loss is recognized in the profit and loss account adjusted for impairment,if any, in the recoverable amounts of such investments.3.4.2 Investments available for saleInvestments ‘available for sale’ are initially recognized at fair value, plus attributable transactions cost.Subsequent to initial recognition these are measured at fair value. Gains or losses on available-for-saleinvestments resulting from changes in fair value are recognized directly in equity until the investments are sold ordisposed off, or until the investments are determined to be impaired, at that time cumulative gain or losspreviously reported in the equity is included in current year's profit and loss account.All other investments in unquoted securities are stated at cost, less provision for impairment, if any.3.4.3 Held-to-maturity investmentsHeld-to-maturity investments are financial assets with fixed or determinable payments and fixed maturities thatthe management has the positive intention and ability to hold to maturity. These are recorded at amortized costusing the effective interest rate method, less any amount written off to reflect impairment.3.4.4 Financial assets at fair value through profit or lossAn instrument is classified as ‘fair value through profit or loss’ if it is held for trading or is designated as suchupon initial recognition. Financial instruments are designated at fair value through profit or loss if the Companymanages such investments and makes purchase and sales decisions based on their fair value. Upon initialrecognition, attributable transaction costs are recognized in the profit and loss account when incurred. Financialinstruments at fair value through profit or loss are measured at fair value, and changes therein are recognized inthe profit and loss account. Purchases and sales of investments are accounted for at trade date, i.e., the date thatthe Company commits itself to purchase or sell the investment.
3.4.5 ImpairmentA financial asset is assessed at each reporting date to determine whether there is any objective evidence that it isimpaired. A financial asset is considered to be impaired if objective evidence indicates that one or more eventshave had a negative effect on the estimated future cash flows of that asset. Individually significant financial assetsare tested for impairment on an individual basis. The remaining financial assets are assessed collectively ingroups that share similar credit risk characteristics.For available-for-sale financial investments, the Company assesses at each balance sheet date whether there isobjective evidence that an investment or a group of investments is impaired. In the case of equity investmentsclassified as available-for-sale, objective evidence would include a significant or prolonged decline in the fairvalue of the investment below its cost. Where there is evidence of impairment, the cumulative loss - measured asthe difference between the acquisition cost and the current fair value, less any impairment loss on that investmentpreviously recognised in the income statement - is removed from equity and recognised in the profit and lossaccount. Impairment losses on equity investments are not reversed through the income statement; increases intheir fair value after impairment are recognised directly in equity.3.4.6 DerecognitionThe Company derecognises a financial asset when the contractual rights to the cash flows from the financial assetexpire or it transfers the financial asset and the transfer qualifies for derecognition in accordance withInternational Accounting Standard 39: Financial Instruments; Recognition and Measurement.A financial liability is derecognised when the obligation specified in the contract is discharged, cancelled orexpired.3.5 Stores, spares and loose toolsStores, spares and loose tools are valued at weighted average cost except for items in transit, which are stated at costincurred up to the balance sheet date. For items which are slow moving and / or identified as surplus to the Company’srequirements, adequate provision is made for any excess book value over estimated realizable value and for this, theCompany reviews the carrying amount of stores and spares on a regular basis and accordingly provision is made forobsolescence.3.6 Stock-in-tradeStock-in-trade is valued at the lower of cost and net realizable value. Cost is determined using weighted average methodexcept for raw material in transit, which is stated at cost. Cost includes applicable purchase cost and manufacturingexpenses. The cost of work in process includes material and proportionate conversion costs.Net realizable value represents the estimated selling price for inventories less all estimated costs of completion and costsnecessary to make the sale.3.7 ProvisionsProvisions are recognized when the Company has a legal or constructive obligation as a result of past events and it isprobable that an outflow of resources emodying economic benefits will be required to settle the obligation and a reliableestimate of the amount can be made. Provisions are reviewed at each balance sheet date and adjusted to reflect currentbest estimate.3.8 Cash and cash equivalentsCash and cash equivalents comprise of cash in hand, deposits held with banks and highly liquid investments with lessthan three months maturity from the date of acquisition. Running finance facilities availed by the Company, which arerepayable on demand and form an integral part of the Company's cash management are included as part of cash andcash equivalents for the purpose of the statement of cash flows.
Page 1 and 2: DAWOOD LAWRENCEPUR LIMITEDBALANCE S
Page 3 and 4: DAWOOD LAWRENCEPUR LIMITEDSTATEMENT
Page 5 and 6: For the year ended December 31, 201
Page 7 and 8: DAWOOD LAWRENCEPUR MILLS LIMITEDNOT
Page 9: 3. SIGNIFICANT ACCOUNTING POLICIEST
Page 13 and 14: 3.11.1 CurrentProvision for current
Page 15 and 16: Note2010 2009Rupees in 0005. INTANG
Page 17 and 18: Note2010 2009Rupees in 0009. STOCK
Page 19 and 20: Note2010 2009Rupees in 00013.1 Reco
Page 21 and 22: Note2010 2009Rupees in '00017.1 Mov
Page 23 and 24: 19.2 CommitmentsThe Company has com
Page 25 and 26: 23. SELLING EXPENSES NoteFor sixmon
Page 27 and 28: NoteFor sixmonths endedDecember 31,
Page 29 and 30: 32.1.1 Credit risk related to recei
Page 31 and 32: Liabilities as per balance sheet- D
Page 33 and 34: 36. DATE OF AUTHORIZATION FOR ISSUE
Page 35 and 36: For comparative yearAccumulated Dep

DAWOOD LAWRENCEPUR LIMITED - Lahore Stock Exchange

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