FLAME

FRIENDS OF LITERACY AND MASS EDUCATION, KARACHI

BALANCE SHEET AS AT JUNE 30, 2007

2007 2006
NON-CURRENT ASSETS Note Rupees Rupees

Fixed assets (At cost less depreciation) 3 1,911,152 1,608,701

Deferred Cost 4 30,875 -

CURRENT ASSETS

Investments 5 2,600,000 3,159,000

Islamabad office -current A/C 681,911 3,911
Advances, deposit and prepayment 6 572,880 630,149
Cash in hand 4,794 1,121
Cash at bank 8 500,090 516,861
4,359,675 4,311,042

Less: CURRENT LIABILITIES

Creditors ,accrued and other liabilities 7 390,252 290,633

9 390,252 290,633
Net current assets 3,969,423 4,020,409

NET ASSETS 5,911,450 5,629,110

FINANCED BY:
Accumulated surplus 5,900,450 5,628,110
Schlarship 11,000 1,000
5,911,450 5,629,110

The annexed notes form an integral part of these accounts.

CHAIRMAN MEMBER MEMBER

 FRIENDS OF LITERACY AND MASS EDUCATION, KAR
INCOME AND EXPENDITURE ACCOUNT
FOR THE PERIOD ENDED 30TH. JUNE. 2007

INCOME:

Donational - Overseas
Donationl - Local
Bank Profit
Income fromPlay/Concert
Interest Income on Term Deposit Rreceipts - PICIC

EXPENSES:
SCHOOL ESTABLISHMENT AND RUNNING COST

Teaching aid and accessories

Honorarium teachers
Promotion and publications
Coordinators salary
Miantenance of Motorcycles
Teachers training
Insurance Motor Cycles
Student aid and accessories
Water charges for Baldia Schools
Electricity Charges for Landhi Schools
Miscellaneous expenese

FLAME OFFICE MANAGEMENT COST

Employee salaries - Office

Office rent
Accounts Written off
Telephone charges
Vocational Training Expenses
Amortization
Depreciation
Misc. General Expenses
Electricity expenses
Audit fee
Courier charges
Service charges / Professional fee
Office Stationery
Office Supplies
Office maintenance
Internet charges
Conveance charges
Maintenance of vehicles
Motor vehicles insurance
Maintenace of Office equipment
Mobile Health Expenses
Rent, Rate &Taxes
Donation to Dukhtran e Awam Trust
Trevelling expenses
Transportation general
News papers & periodicals
Bank charges
Exchange differential cost

Surplus for the period

Accumulated surplus carried to balance sheet

The annexed notes form an integral part f these accounts.

CHAIRMAN MEMBER
CY AND MASS EDUCATION, KARACHI
D EXPENDITURE ACCOUNT
OD ENDED 30TH. JUNE. 2007

2007 2006
Rupees Rupees
1,065,151 5,521,132
3,338,560 1,423,200
65,212 43,229
1,484,204 -
89,828 48,126
6,042,955 7,035,687

154,735 52,392
1,366,065 1,460,835
464,795 467,450
300,649 305,550
15,132 8,424
72,320 123,011
7,767 7,529
103,867 146,999
210,500 17,500
64,400 -
2,800

2,763,030 2,589,690

993,267 622,787
420,000 280,000
9,525 3,300
146,193 107,410
15,000
30,875 18,250
265,547 221,048
36,731 11,009
67,950 81,400
15,000 12,500
10,553 7,347
30,905 20,000
48,716 61,803
34,231 26,849
36,070 134,491
29,900 27,937
5,353 17,768
49,118 11,502
22,855 16,882
42,119 16,489
466,335 322,374
 3,000 10,910
1,000 30,000
118,715 96,949
96,914 60,284
6,607 6,697
17,533 4,022
(12,427) 124,424
3,007,585 2,354,432
5,770,615 4,944,122
272,340 2,091,565
5,628,110 3,536,545
5,900,450 5,628,110

gral part f these accounts.

MEMBER
FRIENDS OF LITERACY AND MASS EDUCATION, KARACHI
NOTES TO THE ACCOUNTS
FOR THE PERIOD THE PERIOD ENDED JUNE 30, 2007

1. STATUS AND NATURE

Friends of Literacy and Mass Education (FLAME) was registered on May 5, 2001 under the Socities Registration Act (XXI of
registered office
office of
ofthe
thesociety
trust isissituated
situatedat
at Islamabad.
Islamabad. The main objectives
objectives of
ofthe
theorganization
organisationisistoto promote
promote thethe cause
cause of literac
of literacy a
education in Pakistan.
basic education in Pakistan.
The institution is approvedunder section2(36)of the Income Tax Ordinance,2001 and the exemption is valid up 30th June,2007
FLAME has applied for tax exemption for the year 2007-08 which is under process of approval.

2. SIGNIFICANT ACCOUNTING POLICIES:

a) Basis of Accounting

These accounts have been prepared under the historical cost convention.

b) Fixed assets

i) Fixed assets are states at cost less depreciation.

ii) Dereciation is charged by reducing balance method on a pro-rata-basis at the rate specified in notes.
iii) Normal repair and maintenance are charged to expense as and when incurred. However, major repairs and improvement
capitalized.

c) Foreign currency transactions

Assets and liabilities in foreign currencies are translated into Pak Rupees at the rate of exchange ruling at the balance sheet date.
Transactions in foreign currencies are accounted for in Pak Rupees at the rate of exchange ruling on the date of transactions
differences are taken to income currently.
differences are taken to income currently.

d) Income and expense recognition

 Income from donations and membership fee is recognized on receipt basis.
Donation in kind are recognized at fair market value as and when donated items are received.
Operating and administrative expenditure is recorded on accrual basis.

e) Deferred costs

These are amortized over a period of two years commencing from 2005.

f) Investment
All investment are recorded at cost

g) Taxation
FLAME does not account for taxation as it is exempt from Income Tax underclause 58/59
of part of the Second Schedule of the Income Tax Ordinance,2001.

3. FIXED ASSETS - (Tangible)

Cost Depreciation
PARTICULARS
Additions
As at As at As at For the
during the
1-July,06 30/06-07 1-July,06 year
period
Furniture and fixtures 209,275 11,100 220,375 22,361 18,858
Office equipment 41,035 33,427 74,462 6,902 7,691
Electric equipment 302,052 29,530 331,582 30,160 57,994
Computers and accessories 142,400 66,967 209,367 34,908 54,958
Motor Cycles 90,520 90,520 22,879 13,528
Motor Vehicle 1,154,755 511,100 1,665,855 214,126 196,644
Rupees: 1,940,037 652,124 2,592,161 331,336 349,673

FIXED ASSETS - (Tangible)

Cost Depreciation
PARTICULARS Additions
As at As at As at For the
during the
1-July,06 30/06-07 1-July,06 year
period
Furniture and fixtures 209,275 11,100 220,375 22,361 18,858
TION, KARACHI

UNE 30, 2007

er the Socities Registration Act (XXI of 1860). The

sationisistoto
ation promote
promote thethe cause
cause of literacy
of literacy andand basic

xemption is valid up 30th June,2007

oval.

ate specified in notes.

However, major repairs and improvements are

change ruling at the balance sheet date.

hange ruling on the date of transactions. Exchange
ved.

Written
Depreciation
down value
RATES
As at As at
30June,07 6/30/07
41,219 179,156 10%
14,593 59,869 20%
88,154 243,428 20%
89,866 119,501 33%
36,407 54,113 20%
410,770 1,255,085 20%
681,009 1,911,152 -
``` 2007 2006
Rupees Rupees
4. Deferred Cost

Web site designing cost 98,250 36,500

Less: Amortization (67,375) (36,500)
Written
Depreciation 30,875 -
down value RATES
As at As at
30June,07 6/30/07
5 Investment

Fixed Deposit Receipts-PICIC Bank 2,600,000 3,159,000

6 Advances,deposit and prepayments

41,219 179,156 10% 6.1 Advances (unsecured-consideredgood)
Advance against expenses- Mr. Mumraiz 500 500
Advance against expenses- Mr. Ahmed Hussain 2,060 11,410
Advance for expenses Miss. Rosei Pannel 136,896 243,000
Advance against expenses- others 17,286 36,477
Advance against salary 141,334 10,500
- Advances to suppliers/contractors 56,000 54,250
Interest income receivable from TDR-PICIC 26,250 48,126
380,326 404,263

6.2 Deposit
Deposit against office rent 175,000 175,000

6.3 Prepayments
Pre paid insurance- Motor cycle 17,534 15,886
Prepaid Rent - 35,000
17,534 50,886
572,860 630,149

7 Cash in hand 4,794 1,121

8 Cash at banks

PICIC Pak Rupee Account No.9962-0300 171,012 75,512

PICIC UK £ Account No.9962-0352 2,586 22,034
PICIC US$ Account No.9962-0351 267,641 216,072
PICIC MHU Account No.9962-0301 8,851 153,243
PICIC WAFA Account No.12416-10 50,000 50,000
500,090 516,861

9 Sundry Creditors , accrued & other liabilities

Accrued expenses 367,633 213,833

Other liabilitiers 22,619 76,800

390,252 290,633

10 Figures have been rounded-off nearest to a rupee.

CHAIRMAN MEMBER MEMBER

CHAIRMAN MEMBER MEMBER