The story of textiles in the subcontinent is the story of Gul Ahmed. The group began trading in textiles in the early 1900’s. With all it’s know-how and experience, the group decided to enter the field of manufacturing and Gul Ahmed Textile Mills Ltd. was incorporated as a private limited company, in the year 1953. In 1972 it was subsequently listed on the Karachi Stock Exchange. Since then the company has been making rapid progress and is one of the best composite textile houses in the world. The mill is presently a composite unit with an installed capacity of 130,296 spindles, 223 wide width air jet looms, and a state of the art processing and finishing unit. In the textile field, activities start from the spinning of cotton as well as man made fibers and extend to weaving, processing and finishing of all types of cotton and blended fabrics, bed linen, home furnishings, garment manufacturing, etc. 1.2Products Gul Ahmed’s fine textile products represent a unique fusion of the century old traditions of the east and the latest textile technology of the west. The purest of cotton fibers, produced from the fertile lands of the Indus Valley, are spun, woven and processed into the finest quality cotton and blended products through a combination of latest technology, skills and craftsmanship of this traditional industry. 1.2.1Bed-Linen Quilt covers ,duvet covers, flat and fitted sheets, pillow covers, valance sheets, bolster case with all sorts of fancy confectioning, embroidery and embellishments, packed to buyers’ specific requirement. 1.2.2Curtain Ready made curtains lined, un-lined and taptop curtains, plain or fully accessorized with tiebacks, pelmets, cushion covers, in different styles of confectioning and embroidery, packed to buyers’ specific requirement. 1.2.3Fabric Running meter fabrics, packed to specific requirement. 1.2.4Yarn Gul Ahmed specializes in medium-to-fine-count cotton yarns and is also capable of producing yarns using a wide variety of synthetic fibers including polyester, rayon and other man-made fibers. CHAPTER 2 ACCOUNTING POLICIES & DISCLOSURES This is the summary of different accounting rules and procedure which is used in the preparation of financial statements by the Gul Ahmed Textile Mills. And here I also tell you how the different accounting rules affects the financial statements of the company. The financial statement of Gul Ahmad is prepared in accordance with approved accounting standards as applicable in Pakistan. The company’s financial statement are prepared is Pakistani rupee. The management of Gul Ahmad exercises its judgment in the process of applying the accounting polices. Estimates and judgments are continuously evaluated and are based upon historical experience, including expectation of future events that are believed to be reasonable under the circumstances. So for this purpose I explained here each item separately which is mentioned in the financial statements. 2.1 Operating Assets These are stated at cost less accumulated depreciation except leasehold land, which is stated at cost. No amortization is provided on leasehold land since the lease is renewal at the option of the lessee. Depreciation is charge on “reducing balance method” at specified rates.
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