FRIENDS OF LITERACY AND MASS EDUCATION

(FLAME) KARACHI.
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30, JUNE 2006.
 FRIENDS OF LITERACY AND MASS EDUCATION (FLAME) KARACHI
BALANCE SHEET AS AT JUNE 30, 2 0 0 6 .

2006 2005
NON-CURRENT ASSETS Note Rupees Rupees

Fixed assets (At cost less depreciation) 3 1,608,701 987,633

Deferred cost 4 - 18,250

CURRENT ASSETS

Investments 5 3,159,000 -
Islamabad office - Current A/c. 3,911 -
Advances, deposit and prepayments 6 630,149 110,333
Cash in hand 1,121 -
Cash at bank 8 516,861 2,664,905
4,311,042 2,775,238
Less: CURRENT LIABILITIES
Islamabad office - Current A/c. - 216,089
Creditors,accrued and other liabilities 9 290,633 28,487
290,633 244,576
Net current assets 4,020,409 2,530,662

NET ASSETS 5,629,110 3,536,545

FINANCED BY :

Accumulated surplus 5,628,110 3,536,545

Scholarship fund 1,000 -
5,629,110 3,536,545

The annexed notes form an integral part of these accounts.

CHAIRMAN MEMBER

- -
 FRIENDS OF LITERACY AND MASS EDUCATION (FLAME) KARACHI ````````````````
INCOME AND EXPENDITURE ACCOUNT ````````````````
FOR THE YEAR ENDED JUNE 30, 2006.
````````````````
````````````````
2006 2005 ````````````````
Rupees Rupees ````````````````
I N C O M E: ````````````````
Donations - Overseas 5,521,132 4,601,806
Donations - Local 1,423,200 132,019
Bank profit 43,229 4,778
Interest income on term deposit receipts-PICIC 48,126 -
7,035,687 4,738,603 ````````````````

EXPENSES:
School Establishment And Running Cost
Teaching aid and accessories 52,392 300,740
Honorarium teachers 1,460,835 175,435
Promotion and information 467,450 82,985
Honorarium co-ordinators 305,550 35,000
Maintanance of motorcycle 8,424 -
Teachers training 123,011 8,715
Insurance expence - Motor cycle 7,529 5,067
Student aid and accessories 146,999 38,993
Water charges for baldia 17,500 -
Miscellaneous - 33,012
2,589,690 679,947

Flame Office Management Cost

Employee salaries - office 622,787 137,832
Office rent 280,000 75,000
Accounts writtenoff 3,300 -
Telephone charges 107,410 47,129
Transportation of material - 19,535
Amortization 18,250 18,250
Depreciation 305,174 26,162
Fuel Expenses - chairman - 24,000
Miscellaneous general expence 11,009 -
Electricity charges 81,400 21,420
Audit fee 12,500 10,000
Professional fee - accounting charges - 10,000
Courier charges 7,347 5,019
Service charges 20,000 15,000
Office stationary 61,803 12,558
Office supplies 26,849 -
Office maintenance 134,491 13,480
Internet charges 27,937 6,136
Conveyance - 8,300
Photostate charges 17,768 -
Maintenance of vehicle 11,502 -
Motorvehicle insurance 16,882 -
Maintanance office equipment 16,489 -
Fuel expenses co-ordinators - 4,260
Mobile health expence 238,248 -
Rent rate or taxes 10,910 -
Donation to Dukhtaran-e- Awam Trust 30,000 -
Travelling expense 96,949 -
Transportation general 60,284 11,700
Refreshment - 5,711
Gas charges - 440
Newspaper and periodicals 6,697 1,292
Bank charges 4,022 150
Net exchange loss 124,424 48,737
2,354,432 522,111
Total expenses 4,944,122 1,202,058
Surplus for the year 2,091,565 3,536,545
Surplus brought forward 3,536,545 -
Accumulated surplus carried to balance sheet 5,628,110 3,536,545

The annexed notes form an integral part of these accounts.

CHAIRMAN MEMBER
````````````````

OLD

E X P E N S E S: ````````````````
SCHOOL ESTABLISHMENT & RUNNING COST

Teaching aid and accessories - 300,740

Honorarium teachers - 175,435
Employee salaries - office 622,787 137,832 ````````````````
Promotion and information - 82,985
Office rent 280,000 75,000
Accounts writtenoff 3,300 -
Student aid and accessories 146,999 38,993
Telephone charges 107,410 47,129
Honorarium co-ordinators - 35,000
Transportation of material - 19,535
Amortization 18,250 18,250
Depreciation 286,134 26,162
Fuel Expenses - chairman - 24,000
Miscellaneous general expence 11,009 6,151
Miscellaneous - 33,012
Electricity charges 81,400 21,420
Audit fee 15,000 10,000
Professional fee - accounting charges - 10,000
Courier charges 7,347 5,019
Service charges 20,000 15,000
Office stationary 61,803 12,558
Office supplies 26,849 -
Teachers training 123,011 8,715
Office maintenance 134,491 13,480
Internet charges 27,937 6,136
Conveyance - 8,300
Photostate charges 17,768 -
Maintenance of vehicle 11,502 -
Motorvehicle insurance 26,560 -
Maintanance office equipment 16,489 -
Fuel expenses co-ordinators - 4,260
Mobile health expence 238,248 -
Maintanance of motorcycle - -
Rent rate or taxes 10,910 -
Insurance expence - motorcycle 13,737 5,067
Donation to Dukhtaran-e- Awam trust 30,000 -
Travelling expense 96,949 -
Transportation general 60,284 11,700
Refreshment - 5,711
Gas charges - 440
Newspaper and periodicals 6,697 1,292
water charges for baldia - -
Bank charges 4,022 150
Net exchange loss 124,424 48,737
2,631,317 1,208,209 ````````````````
Surplus for the last year 3,530,394
Surplus for the period 7,934,764 3,530,394

The annexed notes form an integral part of these accounts.

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````````````````

____________ ____________ ````````````````

CHAIRMAN MEMBER ````````````````

````````````````
FRIENDS OF LITERACY AND MASS EDUCATION, KARACHI
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED JUNE 30, 2006

1. STATUS AND NATURE

Friends of Literacy and Mass Education (FLAME) was registered on May 5, 2001 under the Socities Registration Act (XXI of
1860). The registered office of the society is situated at Islamabad. The main objectives of the organization is to promote the cause
of literacy and basic education in Pakistan.
The institution is approved under section 2(36) of the Income Tax Ordinance, 2001 and the exemption is valid upto 30th june 2007.

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 stated at cost less Accumulated depreciation.

(ii)
Depreciation is charged by reducing balance method on addition depreciation is charged on a pro rata-basis whereas on disposal
deprecation is charged upto the month assets is in use at the rate specified in note3.
(iii) Normal repair and maintenance are charged to expense as and when incurred.
however, major repairs and improvements are capitalized.

c) Foreign currency transctions

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.
Exchange differences are taken to income currently.

d) Income and expense recognition

i) Income from donations and membership fee is recognized on receipt basis.

ii) Profit on investment is recorded on accrual based on effective yeild of investment.
iii) Donation in kind are recognized at fair market value as and when donated items are received.
iv) Operating and administrative expenditure is recorded on accrual basis.

e) Deferred cost

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

f) Investment

All investments are recorded at cost.

g) Taxation

FLAME does not account for taxation, as it is exempt from Income tax under clause 58/59
of part 1 of the Second Schedule of the Income Tax Ordinance, 2001.
 ities Registration Act (XXI of
ganization is to promote the cause

mption is valid upto 30th june 2007.

o rata-basis whereas on disposal

ruling at the balance sheet date.

g on the date of transactions.
 2006 2005
Rupees Rupees
4 Deferred cost

Web site designing cost 36,500 36,500

Less: Amortization (36,500) (18,250)

- 18,250

5 Investment

Fixed Deposit Reciept-PICIC Bank 3,159,000 -

3,159,000 -

6 Advances, deposit and prepayments

6.1 Advances (unsecured - considered good)

Advance for expenses - Mr. Mumraiz 500 -
Advance for expenses - Mr. Ahmed Hassan 11,410 -
Advance for expenses - Miss Rosei Ponnel 243,000 -
Advance against expences - other 36,477 -
Advance against salary 10,500 -
Advance to suppliers/contractors 54,250 -
Interest income recivable from TDR-PICIC 48,126 -
404,263 -

6.2 Deposit
Deposit against office rent 175,000 15,000

6.3 Prepayments
Prepaid insurance - Motorcycle/Motor vehicle 15,886 5,333
Prepaid Rent 35,000 90,000
50,886 95,333
630,149 110,333

2006 2005
RUPEES RUPEES
7 Cash in hand 1,121 -
1,121 -

8 Cash at banks
PICIC Pak Rupee PLS Account No. 9962-0300 75,512 44,360
PICIC UK £ Account No.9962-0352 22,034 2,585,197
PICIC US $ Account No.9962-0351 216,072 35,348
PICIC MHU Account No.9962-0301 153,243 -
PICIC WAFA Account No.9962-0301 50,000 -
516,861 2,664,905

9 Sundry creditors,accrued & other liabilities

Payable to Mr. Ahmed Hassan - 151

Accrued expense 213,833 28,336
Other liabilities 76,800 -
290,633 28,487

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

_____________ ____________
CHAIRMAN MEMBER
3. FIXED ASSETS - (Tangible)

Written down Written down

PARTICULARS COST DEPRECIATION
value value

As at Additions during As at As at As at As at As at
For the year
the year
1-Jul-05 30-Jun-06 1-Jul-05 30-Jun-06 30-Jun-06 30-Jun-05

Furniture and fixtures 112,800 96,475 209,275 9,300 13,061 22,361 186,914 103,500
Office equipment 27,000 14,035 41,035 559 6,343 6,902 34,133 26,441
Electric equipment 56,575 245,477 302,052 1,875 28,285 30,160 271,892 54,700
Computers and accessories 76,900 65,500 142,400 8,459 26,449 34,908 107,492 68,441
Motor Cycles 90,520 - 90,520 5,969 16,910 22,879 67,641 84,551
Motor vehicle 650,000 504,755 1,154,755 - 214,126 214,126 940,629 650,000
Rupees 1,013,795 926,242 1,940,037 26,162 305,174 331,336 1,608,701 987,633
R
A
T
E
S

10%
20%
20%
33%
20%
20%
 FRIENDS OF LITERACY AND MASS EDUCATION (FLAME) KARACHI
CASH FLOW STATEMENT
For the period from September 22, 2004 to May 31, 2005.

Rupee
CASH FLOWS FROM OPERATING ACTIVITIES :
Cash received from donors 2,544,025
Cash payments for operating and administration expenses (1,088,800)
1,455,225
Profit on bank deposit (net of bank charges) 4,628
Net cash from operating activities 1,459,853

CASH FLOW FROM INVESTING ACTIVITIES :

Purchase of fixed assets (352,220)
Net cash used in investing activities (352,220)
Net increase in cash 1,107,633
Cash at begining of period -
Cash at bank at end of period 1,107,633

CHAIRMAN MEMBER MEMBER

 FRIENDS OF LITERACY AND MASS EDUCATION
NOTES OF THE ACCOUNTS
FOR THE YEAR ENDED JUNE 30,2006

1 STATUS AND NATURE

Friends of Literacy and Mass Education (FLAME) was registered on may 5, 2001 u
the
Socities Registration Act (XXI of 1860). The registered office of the society is situa
Islamabad. The main objectives of the organisation is to promote the cause of lite
and
basic education in Pakistan.

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 stated at cost less accunulated deprication.

Depriciation is charged by resucing balande method on a pro_rata-basis at the rat
ii) specifiesd in notes
tered on may 5, 2001 under

ce of the society is situated at

romote the cause of literacy

cost convention

pro_rata-basis at the rate

 Dep. As At
Code Name Date Amount
31/05/05
101 F&F 29/1/05 70,000 2,916.67
103 Office Equipment27/1/05 10,000 833.33
103 Office Equipment29/5/05 17,000 283.33
105 Air Conditioner 27/1/05 40,000 3,333.33
107 Computer 20/2/05 54,000 5,940.00
111 Motor cycle 13/1/05 53,520 5,352.00
111 Motor cycle 23/5/05 37,000 616.67
113 Fans 27/1/05 5,000 416.67
117 Printers 20/2/05 21,500 2,365.00
101 F&F 27/1/05 10,000 416.67
101 F&F 27/1/05 20,000 833.33
101 F&F 10/2/2005 6,800 283.33
107 Computer 23/2/05 1,400 154.00
101 F&F 28/2/05 6,000 200.00
10 352,220 23,944

11 Corresponding figures have been re-arranged and re-grouped for

comparative study.

EXECUTIVE DIRECTOR
 3,710 4,650
667 1,117
2,667 3,750
4,570 8,459
1,774 5,969
333 23,945
4,460
18,181

5,764

F&F 4,650 940

OE 1,117 450
AIR.c 3,333.00 666
Fans 418 85
Computers 6,094 1,524
Printers 2,365.00 591
m.c 5,969 1,509
23,945 5,764

MANGER FINANCE &

ADMINISTRATION ````````````````