AL-NOORANI MULTIPURPOSE CO-OPERATIVE SOCIETY LIMITED

BALANCE SHEET
AS AT JUNE 30, 2007

2007 2006
Note Rupees Rupees

CAPITAL EMPLOYED

Fixed assets 3 962,346 1,047,124

Investments 4 20,523,623 18,071,051

NET WORKING CAPITAL (DEFICIT)

CURRENT ASSETS

Loan to members 5 2,152,835 1,508,166

Advances & prepayment 6 568,934 503,086
Receivables 7 10,955,428 8,259,936
Cash and bank balances 8 10,135,216 11,722,811
23,812,413 21,993,999

LESS: CURRENT LIABILITIES

Members account 9 26,936,622 25,716,472

Profit payable on fixed deposit - 74,158
Accrued expenses 10 145,828 95,180
Dividend payable 19,160 20,040
Suspense deposit against loan sureties 32,000 32,000
Provision for taxation 395,692 154,109
27,529,302 26,091,959

(3,716,889) (4,097,960)

17,769,080 15,020,215

REPRESENTED BY:

Share capital 11 317,025 200,395

Members' participation fund deposit 3,770,715 3,318,205
Reserves and funds 12 4,221,734 3,369,953
Reserves for loan losses 248,962 248,962
Unappropriated surplus 9,210,644 7,882,700

17,769,080 15,020,215

These accounts should be read in conjunction with the annexed notes.

__________ _____________________ __________________

Chairman Honorary Secretary Honorary Treasurer
AL-NOORANI MULTIPURPOSE CO-OPERATIVE SOCIETY LIMITED
INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED JUNE 30, 2007

2007 2006
Note Rupees Rupees

INCOME

From :
Members 166,748 182,258
Co-operative societies 877,055 879,315
Investment and scheduled banks 1,847,077 1,144,526
Government securities 2,351,558 1,835,835
Others 13 4,012 5,878
5,246,450 4,047,812

EXPENDITURE

Administrative and general expenses 14 581,587 499,476

Financial expenses 15 2,023,998 1,756,656
(2,605,585) (2,256,132)
Surplus for the year before taxation 2,640,865 1,791,680

Taxation
- Current 395,692 154,109
- Prior - (74)
395,692 154,035
Surplus for the year after taxation 2,245,173 1,637,645
Unappropriated surplus brought forward 7,882,700 6,920,154
Surplus available for appropriation 10,127,873 8,557,799

Appropriations :

Statutory reserve @ 10% (2006: @ 10%) (Note 12.1) 224,517 163,765

Building fund @10% (2006: @ 10%) (Note 12.2) 224,517 163,765
Proposed dividend @ 10% (2006 : @ 10%) 19,160 20,040
Golden Jubilee @ 5% (2006: nil) (Note 12.4) 112,259 81,882
Reserve for charity @ 5 % (2006: 5%) (Note 12.5) 112,259 81,882
Reserve for education @ 10% (2006: 10%) (Note 12.6) 224,517 163,765

917,229 675,099

Unappropriated surplus carried forward 9,210,644 7,882,700

These accounts should be read in conjunction with the annexed notes.

__________ ___________________ __________________

Chairman Honorary Secretary Honorary Treasurer
AL-NOORANI MULTIPURPOSE CO-OPERATIVE SOCIETY LIMITED
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED JUNE 30, 2006

1 NATURE OF ACTIVITY

The society was established on April 22, 1976 and is registered under The Co-operative Societies Act, 1925. Main
objects of the society are to help and assist members of the Ismaili community to establish themselves in their
respective professions, business, commerce and industry and generally to promote the economic welfare of the
members by advancing loan, assistance and counseling.

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies which have been adopted in the preparation of these accounts are as follows:

2.1 Accounting Convention

These accounts have been prepared on the historical cost convention without any adjustments for the
effects of inflation or revaluation of assets.

2.2 Fixed Capital Expenditure

Fixed assets are stated at written down value.

Depreciation is charged to income applying the declining balance method whereby the cost of an asset is
written off over its estimated service life. Depreciation on additions to fixed assets during the year is charged
for the whole year while no depreciation is charged on items disposed off during the year.

Maintenance and normal repairs are charged to income as and when incurred. Major renewals and
improvements are capitalized and the assets so replaced, if any, are retired. Profit and loss on sale or retirement
of fixed assets is included in income currently.

2.3 Taxation

The charge for current taxation is based on taxable income at current tax rates after considering the
rebates and tax credits available, if any.

2.4 Investments

Investments in government securities have been stated at realizable value, calculated under the rules of the
scheme, based on the assumption that such investments will be held till maturity.

All other investments are stated at cost.

2.5 Revenue Recognition

Income is recorded on accrual basis. Profit on Defence Saving Certificates is accrued based on the rate
applicable to that respective year for the number of days held on the assumption that such investments will be
held till the maturity. Dividends are recorded when the right to receive is established.
3 FIXED ASSETS

Cost / Written Addition Deletion Total Depreciation Cost / Written Rate

Down Value During the during As At For Down Value %
PARTICULARS As At July Year the year June The As At P. A.
01, 2006 30, 2007 Year June 30, 2007

Office Premises 556,821 - - 556,821 27,841 528,980 5

Furniture and fixture 214,038 - (6,090) 207,948 20,795 187,153 10

Electrical equipment 82,446 7,700 - 90,146 9,015 81,131 10

Office equipment 48,592 - - 48,592 4,859 43,733 10

Generator 33,138 - - 33,138 3,314 29,824 10

Computer 26,969 - - 26,969 8,900 18,069 33

Air condition/ split 85,120 6,700 - 91,820 18,364 73,456 20

2007 : Rupees 1,047,125 14,400 (6,090) 1,055,434 93,088 962,346 -

2006: Rupees 1,134,718 18,300 - 1,153,017 105,893 1,047,124 -
 2007 2006
Rupees Rupees

4 INVESTMENT

In government securities:
Defence Saving Certificates 2,500,000 2,500,000

With banks:

Deposit with First International Investment Bank Limited 5,000,000 5,000,000

First Micro Finance Bank 3,000,000 3,000,000

8,000,000 8,000,000

With co-operative societies:

Shares 16,500 16,500
Fixed deposits 10,000,000 7,500,000
Saving deposits 7,123 54,551

10,023,623 7,571,051

20,523,623 18,071,051

5 LOAN TO MEMBERS

Secured against Personel surities 2,152,835 1,508,166

 2007 2006
Rupees Rupees

6 ADVANCES & PREPAYMENTS

Advance income tax 219,965 210,856

Tax refundable '(Note 6.1) 316,274 259,526
Security Deposits with K.E.S.C 7,600 7,600
Prepaid insurance 25,095 25,104

568,934 503,086

6.1 Tax refundable

Tax refundable 2002 - 2003 75,304 75,304

Tax refundable tax year 2004 121,536 121,536
Tax refundable tax year 2005 62,686 62,686
Tax refundable year 2006 56,748 -

316,274 259,526

7 RECEIVABLES

Service charges on loan to members 13,980 10,726

Profit receivable from:

- Co-operative societies 485,755 258,699

- Banks 176,907 63,283
- Defence Saving Certificates 10,278,786 7,927,228

10,941,448 8,249,210

10,955,428 8,259,936

8 CASH AND BANK BALANCES

Cash in hand 4,638 4,818

With banks in :
- Profit & loss account 10,120,578 11,716,993
- Current account 10,000 1,000
10,130,578 11,717,993

10,135,216 11,722,811

9 MEMBERS' ACCOUNT

Fixed deposit account - 2,396,000

Saving deposit account 26,807,160 23,196,380
Compulsory saving account 129,462 124,092

26,936,622 25,716,472
191726
 2007 2006
Rupees Rupees

10 ACCRUED EXPENSES

Audit fee
- Local 12,000 12,000
- Government 2,000 1,000
14,000 13,000
General body meeting 32,000 54,000
Utilities 446 3,180
Professional fees 17,500 25,000
Golden jubliee expenses 81,882 -

145,828 95,180

11 SHARE CAPITAL

Authorised Capital
96,000 'A' class ordinary shares of Rs. 25 each 2,400,000 2,400,000
10,000 'B' class ordinary shares of Rs. 10 each 100,000 100,000
2,500,000 2,500,000

Issued & Paid-up capital:

7661'A' class shares (2006: 7741 shares) of Rs. 25 each fully paid-up 191,525 193,525
12550 'B' class shares(2006: 637 shares of Rs. 10 each fully paid-up 125,500 6,870

317,025 200,395

12 RESERVES AND FUNDS

Statutory reserve (Note 12.1) 2,344,096 2,118,901

Building reserve (Note 12.2) 499,931 275,414
Members' welfare fund (Note 12.3) 379,726 344,809
Reserve for golden jubilee (Note 12.4) 248,084 217,707
Reserve for charity '(Note 12.5) 249,966 137,707
Reserve for education '(Note 12.6) 499,931 275,414

4,221,734 3,369,953
12.1 Statutory reserve

Balance as on July 01, 2,118,901 1,955,136

Transferred from dividend payable 678 -
Appropriated from Income & Expenditure account 224,517 163,765

2,344,096 2,118,901

12.2 Building reserve

Balance as on July 01, 275,414 111,649

Appropriated from Income & Expenditure account 224,517 163,765
Transfer into office renovation expense - -
499,931 275,414
 2007 2006
Rupees Rupees

12.3 Members welfare fund

Balance as on July 01, 344,809 334,009

Add : Received from members 57,229 10,800
Less : Refunded during the year (22,312) -
379,726 344,809

12.4 Reserve for golden jubilee

Balance as on July 01, 217,707 135,825

Appropriated from Income & Expenditure account 112,259 81,882

Less: transfer to accrued expenses (81,882)
248,084 217,707

12.5 Reserve for charitable fund

Balance as on July 01, 137,707 55,825

Appropriated from Income & Expenditure account 112,259 81,882

249,966 137,707

12.6 Reserve for education

Balance as on July 01, 275,414 111,649

Appropriated from Income & Expenditure account 224,517 163,765
499,931 275,414

13 OTHER INCOME

Fee income 1,240 -

Profit from Pak fidai co-operative society 2,572 2,373
Postage income 200 745
Profit on loan of fixed deposits - 2,760
4,012 5,878
 2007 2006
Rupees Rupees

14 ADMINISTRATIVE AND GENERAL EXPENSES

Salaries 153,067 149,705

Insurance 28,886 28,593
Entertainment 11,425 14,499
General body meeting 20,000 20,000
Depreciation 93,086 105,893
Repair & maintenance 25,548 2,133
Electricity 35,950 28,170
Printing & stationery 11,135 2,155
Generator 3,605 1,508
General 1,594 24,450
Audit fee :
- Local 12,000 12,000
- Government 1,000 1,000
13,000 13,000
Telephone bill 7,790 9,840
Conveyance 8,080 5,380
Professional fee 25,000 17,500
Maintenance of office premises 3,450 4,200
Gas 620 2,080
Computer Running 14,445 9,870
Postage Expense 260 -
Office renovation 121,645 -
Water Tax 1,501 -
General Welfare and donation 1,500 60,500
581,587 499,476

15 FINANCIAL EXPENSES

Bank charges 425 440

Profit on members participation deposit 473,031 432,037
Profit on saving deposit 1,483,600 1,114,132
Profit on fixed deposit 66,942 210,047

2,023,998 1,756,656

16 GENERAL
- Prior year's figures have been re-arranged, wherever necessary, for the purpose of comparison.

- Figures have been rounded off to the nearest rupees

__________ ___________________ __________________

Chiarman Honarary Secretary Honorary Treasurer
 7661

12550

7741
 55,825.00

111,649.00