Download - Siemens Pakistan

Notes to the Financial Statements
147
30. CASH AND CASH EQUIVALENTS 2008 2007
Note (Rupees in ‘000)
Cash and bank balances 19 3,407,239 3,311,908
Short-term running finances 10 (907,909) (2,357,180)
2,499,330 954,728
31. DISCONTINUED OPERATIONS
During the year ended September 30, 2006, Siemens AG announced that globally the Communication (COM) carrier network activities of SAG
would be carved out and merged into a new company (with 50:50 stake holding), called Nokia Siemens Networks, with Nokia as the other partner.
Further, SAG’s COM enterprise network business would also be separated to form a new entity. During the year ended September 30, 2007, the
Board of Directors and the shareholders of the Company approved the carve out of COM carrier and enterprise network activities of the Company
to Nokia Siemens Networks Pakistan (Private) Limited (NSN) and Siemens Enterprise Communications (Private) Limited (SEN) respectively, at their
respective fair market values. The COM carrier activities of the Company, including the COM carrier activities of CTI, have been carved out to NSN
effective April 1, 2007 at sale proceeds aggregating Rs 2,294.210 million. The COM enterprise activities of the Company have also been carved out
to a separate entity at the sale proceed of Rs 156.484 million, effective August 2, 2007.
Profits attributable to the discontinued operations were disclosed on the face of profit and loss account.
Cash flows from discontinued operations 2008 2007
Note (Rupees in ‘000)
Net cash flows from operating activities - . 872,619
Net cash flows from investing activities - . (5,817)
Net cash flows from discontinued operations - . 866,802
32. AUDITORS' REMUNERATION
Audit fee 1,985 1,303
Tax representation and advisory services 964 500
Special reports and certifications, review
of half yearly accounts, audits of workers'
profits participation fund and gratuity fund 693 1,112
Out of pocket expenses 271 171
3,913 3,086
33. LONG-TERM CONSTRUCTION CONTRACTS
Contract revenue for the year 16,712,661 12,410,030
Contract costs incurred to date 37,161,718 30,838,676
Gross profit realised to date 3,562,596 2,939,339
Balance of advances received 4,956,481 1,120,306
Retention money receivable 6,272,974 3,500,623
Gross amount due from customers 6,288,646 3,742,678
Estimated future costs to complete projects in progress 33.1 17,582,527 2,911,430
33.1 As part of application of percentage of completion method on contract accounting, the plan costs are estimated. These estimates are based on the
prices of materials and services applicable at that time, forecasted increases and expected completion date at the time of such estimation. Such
estimates are reviewed at regular intervals. Any subsequent changes in the prices of materials and services compared to forecasted prices and
changes in the time of completion affect the results of the subsequent periods.