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Purnava LimitedNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20121 REPORTING ENTITY1.1 Company profilePurnava Limited is a private limited company incorporated in Bangladesh on 17 August 2004 under the Companies Act1994.1.2 Registered office and principal place of businessThe registered office of the Company is situated at Plot No.01, Milk Vita Road, Section-07, Mirpur, Dhaka-1216.1.3 Principal activitiesThe principal activities of the company are to carry on the business of manufacturing, marketing and distribution of allkinds of consumer goods, consumer durables, food items, sugar confectioneries, edible oils, beverages etc. rawmaterials, semi-finished items, producers, goods and various other products of local or foreign origin and to engage inthe business as traders, importers, exporters, commission agents of all kinds of goods and services includingpharmaceutical drugs and medicines.2 BASIS OF PREPARATION2.1 Reporting periodThe financial period of the company covers one year from 1 January to 31 December 2012 consistently.2.2 Statement of complianceThe financial statements have been prepared in accordance with Bangladesh Accounting Standards (BAS) andBangladesh Financial Reporting Standards (BFRS) and as per the requirements of the Companies Act 1994.2.3 Basis of measurementThe financial statements have been prepared on the historical cost convention in accordance with Generally AcceptedAccounting Principles (GAAP).2.4 Going concernThe company has adequate resources to continue in operation for the foreseeable future. For this reason themanagement continue to adopt going concern basis in preparing the accounts. The current credit facilities and resourcesof the company provide sufficient funds to meet the present requirements of its existing businesses and operations.2.5 Regulatory complianceThe Company is required to comply with amongst others, the following laws and regulations:The Companies Act 1994The Income Tax Ordinance 1984The Income Tax Rules 1984The Value Added Tax (VAT) Act 1991The Value Added Tax (VAT) Rules 1991•108