1.1 Kutchi Soomra Jamat (the "Jamat") was registered on 20th July 1961 as Cuthci Sumra Jamat under the Society Registration Act, 1860 (KAR No. 139 of 1961-1962) and changed its name on 9th September 2018. The registered office of the Jamat is situated at Millwala Apartment, Soomra Street, Off Nishter Road, Karachi, Pakistan.

The objective of the Jamat to improve and facilitate the interrelationship and to promote co ordination among community members concerned with social welfare programs and services.

Presently the Jamat is running two community centers (one at Nishter Road & other at Agra Taj) in the city along with a small community center at Kemari.

To secure, receive, accept and manage funds, donations and any other properties to utilize them for the aim of Jamat.

2.1 Statement of Compliance
These financial statements have been prepared in accordance with general accepted accounting principles applicable in Pakistan.

2.2 Accounting convention and basis
These financial statements have been prepared under the historical cost convention, except as otherwise disclosed in the accounts.

The significant accounting policies applied in the preparation of these financial statements are set out below.

3.1 Property, plant and equipment
These are initially stated at cost except assets received in kind recognized at fair market value. Subsequent to initial recognition, the cost of operating fixed assets is depreciated over the useful life of related assets and stated at written down value. Depreciation is charged under the reducing balance method using the rates mentioned in note 4. Full year depreciation is charged on assets in the year of purchase and no depreciation is charged on assets in the year of disposal. Gains and losses on disposal of assets are included in income currently. Normal repair and maintenance are charged to profit and loss accounts while major renewals are capitalized.

3.2 Advances, deposit and prepayments
These are recognized and stated at cost less provision for doubtful balances, if any.

3.3 Cash and bank balances
Cash in hand and at banks are carried at cost. For the purposes of cash flow statement, cash and cash equivalent consists of cash in hand and balances with bank net of borrowing not considered to be in nature of financing activities.

3.4 Income recognition
Income is recognized to the extent it is probable that the economic benefits will flow to the Jamat and the income can be measured reliably. Income is measured at fair value of the consideration received and is recognized on the following basis:

• Income is recognized on performance of services are rendered.
• Donation in kind are recognized when the title, possession and control is transferred to the Jamat. These are recorded at estimated value on the basis of prevailing market prices.
• Other income are recognized on receipts basis.

3.5 Provisions
A provision is recognized in balance sheet when the Jamat has a legal or constructive obligation as a result of past event, it is probable that an out flow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of

3.6 Trade and other payables
Trade and other payables are recognized initially at fair value plus directly attributable cost, if any, and subsequently measured at amortized cost.

3.7 Related party transactions
Transactions with related parties is based at arm's length using normal commercial rates on the same terms and conditions as third party transactions.

Details are shown separately in the Property, Plant and Equipment section above.

Since its inception neither Jamat is registered with FBR nor filing annual tax return as required under the income tax law.

The Jamat is working as non profit organization (NPO) and the management has intention to get approval as a Non-Profit Organization (NPO) under section 2(36) of Income Tax Ordinance, 2001 from tax authorities but not yet applied.

Provision for taxation has not been made as the management is very positive and assured that they will be able to obtain income tax exemption from tax authorities. In case of any adverse decision for exemption from tax authorities the current year tax liability will be Rs. 82,799 and accumulated for tax year 2021 & 2022 Rs. 142,300.

Number of employees as at June 30: (2022: 11 2021: 10)

i Figures have been rounded off to nearest Rupee.

ii Corresponding figures have been re-arranged and re-classified, wherever necessary, for the purpose of comparison.

These financial statements have been authorized for issue by the Managing Committee of the Jamat on ______.