Sitara chemicals
Notes definition
•The Notes to the the financial statements are somewhat like footnotes
•They give additional information in instances where you wouldn't be able to understand
what the numbers meant with just the description offered.
•Notes section explains the non-self-explanatory line items
Note #01
•Discloses general information such as:
•Location of the company’s office
•Company’s main operations
•And the operations on which the financial reports are prepared
Note #02
Consists of statement of compliance and adoption of new and revised laws, interpretation and
standards.
2.1 Statement of compliance
•Just discloses that financial reports are prepared according to the IFRS, requirements of
companies’ ordinance, 1984, and the directives from the SECP.
•Also mentions that wherever IFRS differs from requirements of Companies ordinance or
directives from company follows companies’ ordinance and directives from SECP.
2.1.1 Revised Adoption of new and revised laws, standards and interpretations
•Notifies that in 2017 new company act (the Companies Act, 2017) was enacted by the
SECP.
•Also, let’s know of the circular no. 17 of July 2017, which states that the companies
who’s year end before June 30 shall prepare the financial statements according to
previous ordinance (the companies’ ordinance, 1984)
2.2 Standards, interpretation and amendment adopted during the year
•List the amendments to the existing standards that are applicable to company’s
financial reports covering the annual period on or after the dates mentioned.
2.2.1 lists the standards, amendments and interpretations which are effective for the year ended
June 2017
1. IFRS 10-Consolidated financial statements
•Objective of IFRS 10 is to establish principles for the presentation and preparation of
the consolidated financial statements when an entity controls one or more other
entities
