SUMMARY OF FOURTH SCHEDULE REQUIREMENTS AS TO BALANCE SHEET AND PROFIT AND LOSS ACCOUNT OF LISTED COMPANIES In this Schedule,

following are some of the legal definition of related financial term as told by the C.O 1984 Accounting policies includes the principles, bases conventions, rules and procedures adopted by directors in preparing financial statements of a company; Debts include loans and advances and other receivable where it relates to amounts written off and provision for doubtful and bad debts; Finance lease means a lease that transfers substantially all the risk and rewards incident to ownership of an asset. Title may or may not eventually be transferred]; financial statement includes balance-sheet, profit and loss account and statement of changes in the financial position or statement of sources and application of funds; operating lease means a lease other than a financial lease

REQUIREMENTS AS TO BALANCE SHEET The assets and liabilities shall be classified under the headings appropriate to the companys business distinguishing as regard assets between fixed assets, long-term prepayments and deferred costs investments, loans and advances and current assets and as regards liabilities ASSETS Fixed assets (other than investments) shall be distinguished between tangible and intangible and shall be classified under appropriate sub-headings LONG TERM INVESTMENTS investments in immovable properties investments in redeemable capital investments in debentures and bonds issued by a Government, Municipal Committee or other local authority

other investments ( to be specified).

CURRENT ASSETS Current assets shall be classified under sub-heads including the following: stores and spare parts stock-in-trade trade debts loans and advances due for repayment within a period of twelve months from the date of the balance-sheet, showing separately those considered good and those considered doubtful or bad; trade deposits and short term prepayments and current account balances with statutory authorities; bills receivable marketable securities, other than long-term investments; cash and bank balances

REDEEMABLE CAPITAL The finance obtained by issue of, or representing redeemable capital shall be distinguished between participatory redeemable capital and other redeemable capital; and secured and unsecured.

Under each class, the finance obtained shall be distinguished as obtained on the basis of or representing: participation term certificates (PTC); musharika arrangement; term finance certificates (TFC); long-term running finance utilised under mark-up arrangement; and

DEBENTURES AND LONG-TERM LOANS Borrowing in respect of debentures shall be separately shown classified as secured and unsecured together with a statement of the assets upon which they are secured and where more than one class of liabilities is so secured their relative LONG-TERM DEPOSITS The aggregate amount of deposits classified according to nature and repayment period shall be shown along with rate of interest payable thereon and other material terms. Such deposits shall be classified as from customers from employees from others CURRENT LIABILITIES Current liabilities shall mean liabilities due and payable (other than liabilities the payment of which may, at the companys option, be postponed) within twelve months from the date of the balance-sheet, together with such other liabilities as are under recognized accounting principles appropriately so classified.

FIFTH SCHEDULE REQUIREMENTS AS TO BALANCE SHEET AND PROFIT AND LOSSACCOUNT OF NON-LISTED COMPANIES In this Schedule, following are some of the legal definition of related financial term as told by the C.O 1984 Reserve, subject to the proviso in clause does not include any amount written off or retained by way of providing for depreciation, renewals or diminution in value of assets or retained by way of providing for any known liability; Turnover means the gross income, exclusive of trade discount shown on invoices of bills, derived from sale of goods or from rendering, giving or supplying services or benefits or from execution of contracts

Unusual items means gains or losses that derive from events or transactions which are distinct from the ordinary activities of a company and therefore are not expected

to recur frequently or regularly Any term or expression not defined in the Ordinance or this Schedule shall be construed to mean the same as under the generally recognized accounting principles.

REQUIREMENTS AS TO BALANCE SHEET The assets and liabilities shall be classified under the headings appropriate to the companys business distinguishing as regards assets between fixed assets, long-term prepayment and deferred costs, investments, loans and advances and current assets and as regards liabilities between share capital and reserves FIXED ASSETS Fixed assets (other than investments) shall be distinguished between tangible and intangible and shall be classified under appropriate sub-heads, duly itemized such as tangible land (distinguishing between free-hold and leasehold) buildings (distinguishing between buildings on free-hold land and those on leasehold land) plant and machinery furniture and fittings

LONG TERM LOANS AND ADVANCES There shall be shown under separate sub-heads, distinguishing between considered good and considered bad or doubtful, aggregate amounts respectively of the company's loans and advances to subsidiary companies and associated undertakings; loans and advances to the directors, chief executive and managing agents of the company; Other loans and advances.

LONG TERM DEPOSITS, PREPAYMENTS AND DEFERRED COSTS There shall be stated separately long-term deposits, long-term prepayments and deferred costs. Deferred costs shall include preliminary expenses, discount allowed on the issue of shares, if any, and expenses, incurred on the issue of shares including any sums paid by way of commission or brokerage on the issue of shares, to the extent not written off or adjusted and each of these items shall be stated separately.

CURRENT ASSETS Current assets shall be classified under sub-heads appropriate to the company's affairs, including, where applicable, the following: stores and spare parts; loose tools; stock-in-trade, distinguishing, where practicable, between (a) stock of raw materials and components, (b) work-in-progress, (c) stock of finished products, and (d) other stocks; Trade debts which shall include amounts due in respect of goods sold or services rendered or in respect of other contractual obligations but shall not include the amounts which are in the nature of loans or advances. Debts considered good and debts considered doubtful or bad shall be separately stated. Debts considered good shall be distinguished between those for which the company holds no security other than the debtor's personal security; loans and advances due for repayment within a period of twelve months from the date of the balance-sheet, showing separately those considered good and those considered doubtful or bad; trade deposits and short term prepayments and current account balances with statutory authorities; bills receivable; marketable securities, other than long-term investments; interest accrued or interest outstanding; other receivables; tax refunds due from Government; and

LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE the interest rates used as the discounting factor amount of future payments and the periods in which they will become due purchase options or terms of escalation financial restrictions imposed, if any any other material terms.

DEFERRED LIABILITIES Liabilities as are under recognized accounting principles appropriately classified as

deferred liabilities shall by shown distinguished as for taxation; for pension, gratuity and other staff benefit schemes; Other deferred liabilities. Where any deferred liability is represented by accumulations which are required by the Ordinance or any other law to be invested in any specific manner or kept in a special deposit or account, the same shall be shown separately indicating the mode in which it is invested, deposited or kept. Where any liability has not been fully provided for, the extent to which it has not been provided for together with the reasons thereof (showing separately the portion relating to the financial year) shall be disclosed.

CURRENT LIABILITIES Current liabilities shall mean liabilities due and payable (other than liabilities the payment of which may, at the company's option, be postponed) within twelve months from the date of the balance-sheet, together with such other liabilities as are under recognized accounting principles appropriately classified.

PART III REQUIREMENT AS TO PROFIT AND LOSS ACCOUNT The profit and loss account shall be so made out as to disclose clearly the operating results of the company during the financial year covered by the account and shall show, arranged under the most convenient heads, the gross income and the gross expenditure of the company during the financial year disclosing every material feature .