FLAME

FRIENDS OF LITERACY AND MASS EDUCATION, KARACHI

BALANCE SHEET AS AT JUNE 30, 2006

2006 2005
NON-CURRENT ASSETS Note Rupees Rupees

Fixed assets (At cost less depreciation) 3 1,609,589 987,633

Deferred Cost 4 18,250

Investment in FDRs- PICIC 3,159,000 -

CURRENT ASSETS

Advances, deposit and prepayment 5 705,137 110,333

Bank balances 6 517,982 2,664,905
1,223,119 2,775,238

Less: CURRENT LIABILITIES

Islamabad Office - Current A/c. (3,911) 216,089
Sundry Creditors 7 294,133 28,487
290,222 244,576
Net current assets 932,897 2,530,662

NET ASSETS 5,701,486 3,536,545

FINANCED BY:

Surplus 5,701,486 3,536,545

5,701,486 3,536,545

The annexed notes form an integral part of these accounts.

CHAIRMAN MEMBER MEMBER

 FRIENDS O
IN
FOR

INCOME:

Donational - Overseas
Donationl - Local
Bank Profit
Interest Income on Term De

EXPENSES:
SCHOOL ESTABLISHMEN

Honorarium teachers
Teachers training
Promotion and publications
Student aid and accessories
Coordinators salary
Transportation of Material s
Teaching aid and accessorie
Water charges for Baldia Sc
Miantenance of Motorcycles
Insurance Motor Cycles
Miscellaneous expenese

FLAME OFFICE MANAGEM

Office rent
Employee salaries - Office
Electricity expenses
Telephone charges
Office maintenance
Office Stationery
Courier charges
Transportation general
News papers & periodicals
Motort vehicles insurance
Audit fee
Depreciation
Service charges / Profession
Maintenace of Office equipm
Photo state Charges
Amortization
Internet charges
Maintenance of vehicles
Office Supplies
Rent, Rate &Taxes
Trevelling expenses
Donation to Dukhtran e Awa
Mobile Health Expenses
Accounts Written off
Misc. General Expenses

Bank charges
Exchange differential cost

Surplus for the period

The annexed notes form an

CHAIRMAN
 FRIENDS OF LITERACY AND MASS EDUCATION, KARACHI
INCOME AND EXPENDITURE ACCOUNT
FOR THE PERIOD ENDED 30TH. JUNE. 2006

2006 2005
Rupees Rupees
onational - Overseas 5,521,132 4,601,806
1,423,200 132,019
43,229 4,778
erest Income on Term Deposit Rreceipts - PICIC 139,000
7,126,561 4,738,603

CHOOL ESTABLISHMENT AND RUNNING COST

onorarium teachers 1,460,835 175,435

123,011 8,715
omotion and publications 467,450 82,985
udent aid and accessories 146,999 38,993
oordinators salary 305,550 39,260
ansportation of Material schools 19,535
aching aid and accessories 52,392 300,740
ater charges for Baldia Schools 17,500 -
antenance of Motorcycles 8,424
surance Motor Cycles 13,737 5,067
scellaneous expenese 33,012
2,595,898 703,742
AME OFFICE MANAGEMENT COST
280,000 75,000
mployee salaries - Office 622,787 137,832
ectricity expenses 81,400 21,420
lephone charges 107,410 47,129
fice maintenance 134,491 13,480
61,803 12,558
7,347 5,019
ansportation general 60,284 44,000
ews papers & periodicals 6,697 1,292
otort vehicles insurance 26,560
15,000 20,000
304,286 26,162
rvice charges / Professional fee 20,000 15,000
aintenace of Office equipment 16,489
oto state Charges 17,768
18,250 18,250
27,937 6,136
aintenance of vehicles 11,502
26,849
ent, Rate &Taxes 10,910
evelling expenses 96,949
onation to Dukhtran e Awam Trust 30,000
obile Health Expenses 238,248
counts Written off 3,300
sc. General Expenses 11,009 6,151
2,237,276 449,429
4,022 150
change differential cost 124,424 48,737
128,446 48,887
4,961,620 1,202,058

rplus for the period 2,164,941 3,536,545

e annexed notes form an integral part f these accounts.

MEMBER MEMBER
FRIENDS OF LITERAC
 NOTES
FOR THE PERIOD TH

1. STATUS AND NATURE

Friends of Literacy and Mass Edu

Registration Act (XXI of 1860). Th
objectives of the organisation is to p

2. SIGNIFICANT ACCOUNTING POL

a) Basis of Accounting

These accounts have been prepare

b) Fixed assets

i)
ii)

iii)

c) Foreign currency transactions

Assets and liabilities in foreign cur

at the balance sheet date. Transac
of exchange ruling on the date of tr

d) Income and expense recognition

Income from donations and membe

Donation in kind are recognized at
Operating and administrative expen

e) Deferred corst

These are amortized over a period

3. FIXED ASSETS - (Tangible)

Description

Furniture and fixtures

Office equipment
Electric equipment
Computers and accessories
Motor Cycles
Motor Vehicle
Rupees:
FRIENDS OF LITERACY AND MASS EDUCATION, KARACHI
 NOTES TO THE ACCOUNTS
FOR THE PERIOD THE PERIOD ENDED JUNE 30, 2006

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 trust is situated at Islamabad. The main
objectives of the organisation is to promote the cause of literacy and basic education in Pakistan.

SIGNIFICANT ACCOUNTING POLICIES:

Basis of Accounting

These accounts have been prepared under the historical cost convention.

Fixed assets

Fixed assets are states at cost less depreciation.

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

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. Exchange differences are taken to income currently.

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.

Deferred corst

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

FIXED ASSETS - (Tangible)

Written
Cost Depreciation
down value
Description RATES
Additions
As at For the As at As at
during the
6/30/05 period 60/30/05 6/30/05
period
Furniture and fixtures 112,800 112,800 9,300 9,300 103,500 10%
Office equipment 27,000 27,000 559 559 26,441 20%
Electric equipment 56,575 56,575 1,875 1,875 54,700 20%
Computers and accessories 76,900 76,900 8,459 8,459 68,441 33%
Motor Cycles 90,520 90,520 5,969 5,969 84,551 20%
Motor Vehicle 650,000 650,000 - - 650,000 20%
Rupees: 1,013,795 1,013,795 26,162 26,162 987,633 -

4. Deferred Cost

Web site designing cost

Less: Amortization

5. ADVANCES Deposit and prepa

Advance against expenses

 advances to Miss. Rosei pnnel
Advance against expenses- Mr.
Advance against expenses- Mr.
Advance against salary
Advances to suppliers/contractor
INTEREST INCOME RECEIVAB

Deposit
Deposit against office rent

Prepayments
Pre paid insurance- Motor cycle
Prepaid Rent

6. Bank Balances

Petty cash Imperest Account

PICIC Pak Rupee Account No.99
PICIC UK£ Account No.9962-03
PICIC US$ Account No.9962-03
PICIC MHU Account No.9962-03
PICIC WAFA Account No.9962-

7. Sundry Creditors

Payable to Mr. Ahmed Hassan

Accrued expense
Scholarship Fund Account
Salaries Payable account
Out standing liabilities account

8. Figures have been rounded-off n

CHAIRMAN
 2006 2005
Rupees Rupees
Deferred Cost

Web site designing cost 36,500 36,500

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

ADVANCES Deposit and prepayments

Advance against expenses 36,477

advances to Miss. Rosei pnnel 243,000
Advance against expenses- Mr. Mumraiz 500
Advance against expenses- Mr. Ahmed Hussain 11,410
Advance against salary 10,500
Advances to suppliers/contractors 54,250
INTEREST INCOME RECEIVABLE TDR-PICIC 139,000
495,137 -

Deposit against office rent 175,000 15,000

Prepayments
Pre paid insurance- Motor cycle 5,333
35,000 90,000
35,000 95,333
705,137 110,333

Bank Balances

Petty cash Imperest Account 1,121 -

PICIC Pak Rupee 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
517,982 2,664,905

Sundry Creditors

Payable to Mr. Ahmed Hassan 151

Accrued expense 23,140 28,336
Scholarship Fund Account 1,000
Salaries Payable account 193,193
Out standing liabilities account 76,800

294,133 28,487

Figures have been rounded-off nearest to a rupee.

CHAIRMAN MEMBER MEMBER

3.3. Staff remuneration (Gross annual salary + benefits) in Rupees

Highest paid members of staff Salary - Rs. 15,000

Mr. Ali Arshad Manager (I.T.)

July, 05 to June, 06 7 x 12,000 84,000

Feb, 06 to June, 06 5 x 15,000 75,000
159,000

Mr. Abdul Ghani Manager (Finance)

Dec, 05 18 days 9,000

Jan, 06 13 days 6,500
Feb, 06 12 days 6,000
Mar, 06 to June, 06 4 x 15,000 60,000
81,500

Mr. Mohsin Noorani Manager (Admin)

Feb, 06 to May, 06 4 x 15,000 60,000

300,500

Second highest paid members of staff Salary - Rs. 12,000

Mr. Zafar Iqbal Asst. Manager (I.T.)

Feb, 06 to June, 06 5 x 12,000 60,000

Mr. Khush Bash Alam P.S. to C.M.

May, 06 to June, 06 2 x 12,000 24,000

84,000

Third highest paid member of staff Salary - Rs. 8,800

Mr. Aurangzaib P.A. to C.M.

July, 05 to Jan, 06 7 x 8,000 56,000

Feb, 06 to June, 06 5 x 8,800 44,000
100,000

Lowest paid members of staff Salary - Rs. 3,500 / 5,000

Mr. Nadir Office Boy Salary - Rs. 3,500

12 x 3,500 42,000
Less: Adjustment (2,000)
40,000
Drivers 2 Nos. Salary - Rs. 5,000

2 x 5,000 x 12 120,000
160,000
Schedules

Office Support Expenses

Teacher's Training 133,063

Traveling Expenses 96,949

Other Office Support Expenses

Rent 485,000
Telephone Charges 118,490
Electricity Expense 143,211
746,701

Communication

Promotion & Information 467,450

Consultants' Fee

Audit Fee 17,500

Service Charges 20,000

School Establishment & Running Cost

Total 2,618,742
Less:
Promotion & Information Expense (467,450)
Teachers Training (133,063)
(600,513)
2,018,229
Add:
Employees Salaries 1,112,587
3,130,816

Other Programme Expenses

Accounts Written off 3,300

Amortization 18,250
Miscellaneous General Expenses 29,989
Courier Charges 7,347
Office Stationery 115,107
Office Supplies 26,849
Office Maintenance 134,491
Internet Charges 27,937
Photostat Charges 17,768
Maintenance of Vehicles 58,266
Motor Vehicle Insurance 41,943
Maintenance of Office Equipment 16,489
Mobile Health Unit Expenses 301,748
Rent, Rates & Taxes 10,910
Transportation General 153,043
News Papers & Periodicals 6,697
Bank Charges 4,563
974,697
 FRIENDS OF LITERACY AND MASS EDUCATION, KARACHI
INCOME AND EXPENDITURE ACCOUNT
FOR THE PERIOD ENDED JUNE 30th, 2006 Rs.
3.6. Important Financial Statistics for the Last Three Years
INCOME: Notes Sindh Islamabad Total
Donations - Overseas 5,521,132 - 5,521,132
Donationl - Local 1,423,200 1,281,295 2,704,495
Bank Profit 43,229 - 43,229
Interest Income on Term Deposit Rreceipts - PICIC 48,126 107,300 155,426
7,035,687 1,388,595 8,424,282
EXPENSES:
SCHOOL ESTABLISHMENT AND RUNNING COST
Teaching aid and accessories 52,392 - 52,392
Honorarium Teachers 1,460,835 19,000 1,479,835
Promotion and publications 467,450 - 467,450
Honorarium to Coordinators 305,550 - 305,550
Maintenance of Motorcycles 8,424 - 8,424
Teachers training 123,011 10,052 133,063
Insurance Expense - Motor Cycles 7,529 - 7,529
Student aid and accessories 146,999 - 146,999
Water charges for Baldia Schools 17,500 - 17,500
Miscellaneous expenses - - -
2,589,690 29,052 2,618,742
FLAME OFFICE MANAGEMENT COST
Employee salaries - Office 622,787 489,800 1,112,587
Office rent 280,000 205,000 485,000
Accounts Written off 3,300 - 3,300
Telephone charges 107,410 11,080 118,490
Transportation of school material - - -
Amortization 18,250 - 18,250
Depreciation 305,174 72,011 377,185
Fuel Expenses - Chairman - - -
Misc. General Expenses 11,009 18,980 29,989
Electricity expenses 81,400 61,811 143,211
Audit fee 12,500 5,000 17,500
Professional Fee - Accounting Charges - - -
Courier charges 7,347 - 7,347
Service charges 20,000 - 20,000
Office Stationery 61,803 53,304 115,107
Office Supplies 26,849 - 26,849
Office Maintenance 134,491 - 134,491
Internet charges 27,937 - 27,937
Conveyance - - -
Photostat Charges 17,768 - 17,768
Maintenance of vehicles 11,502 46,764 58,266
Motor vehicles insurance 16,882 25,061 41,943
Maintenance of Office equipment 16,489 - 16,489
Fuel Expenses - Co-ordinators - - -
Mobile Health Expenses 238,248 63,500 301,748
Rent, Rates &Taxes 10,910 - 10,910
Donation to Dukhtran-e-Awam Trust 30,000 - 30,000
Travelling expenses 96,949 - 96,949
Transportation general 60,284 92,759 153,043
Refreshments - - -
Gas Charges - - -
News papers & periodicals 6,697 - 6,697
Bank charges 4,022 541 4,563
Net Exchange Loss 124,424 - 124,424
Total of FLAME Office Management Cost 2,354,432 1,145,611 3,500,043
Total Expenses 4,944,122 1,174,663 6,118,785
The annexed notes form an integral part of these accounts.