M Yousuf Adil Saleem amp Co Chartered AccountantsOeloitte

PROGRESSIVE EDUCATION NETWORK

Financial Statements For The Year Ended June 30 2011

Member of Deloitte Touche Tohmatsu Limited

Deloitte M Yousuf Adil Saleem amp Co Chartered Accountants 66middotEmiddotFCC Syed MaratabAli Road Gulberg IV Lahore Pakistan

UAN +92-42middot111 55 2626 Fax +92-42middot5763091 Web wwwdeloitte com

AUDITORS REPORT TO THE MEMBERS

We have audited the annexed balance sheet of the Progressive Education Network (the Company) as at June 30 2011 and the related receipt and expenditure account together with the notes forming part thereof for the year then ended It is the responsibility of the management to establish and maintain a system of internal control and prepare and present the financial statements in conformity with the approved accounting standards as applicable in Pakistan Our responsibility is to express an opinion on these financial statements based on our audit

We conducted our audit in accordance with generally accepted auditing standards Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of any material misstatement An audit includes examining on a test basis evidence supporting the amounts and disclosures in the financial statements An audit also includes assessing the accounting policies used and significant estimates made by management as well as evaluating the overall presentation of the financial statements We believe that our audit provides a reasonable basis for our opinion and after due verification we report that

(a) in our opinion proper books of accounts have been kept by the Company as required by the Companies Ordinance 1984

(b) in our opinionshy

(i) the balance sheet receipt and expenditure account together with the notes thereon have been drawn up in conformity with the Companies Ordinance 1984 and are in agreement with the books of accounts and are further in accordance with accounting policies consistently applied

(ii) the expenditure incurred during the year was for the purpose of the Companys business and

(iii) the business conducted investments made and the expenditure incurred during the year were in accordance with the objects of the Company

Member of Deloitte Touche Tohmatsu

12

Deloitte M Yousuf Adil Saleem amp Co Chartered Accountants 66middotEmiddotFCC Syed MaratabAli Road Gulberg IV Lahore Pakistan

UAN +92-42middot111 55 2626 Fax +92-42middot5763091 Web wwwdeloitte com

AUDITORS REPORT TO THE MEMBERS

We have audited the annexed balance sheet of the Progressive Education Network (the Company) as at June 30 2011 and the related receipt and expenditure account together with the notes forming part thereof for the year then ended It is the responsibility of the management to establish and maintain a system of internal control and prepare and present the financial statements in conformity with the approved accounting standards as applicable in Pakistan Our responsibility is to express an opinion on these financial statements based on our audit

We conducted our audit in accordance with generally accepted auditing standards Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of any material misstatement An audit includes examining on a test basis evidence supporting the amounts and disclosures in the financial statements An audit also includes assessing the accounting policies used and significant estimates made by management as well as evaluating the overall presentation of the financial statements We believe that our audit provides a reasonable basis for our opinion and after due verification we report that

(a) in our opinion proper books of accounts have been kept by the Company as required by the Companies Ordinance 1984

(b) in our opinionshy

(i) the balance sheet receipt and expenditure account together with the notes thereon have been drawn up in conformity with the Companies Ordinance 1984 and are in agreement with the books of accounts and are further in accordance with accounting policies consistently applied

(ii) the expenditure incurred during the year was for the purpose of the Companys business and

(iii) the business conducted investments made and the expenditure incurred during the year were in accordance with the objects of the Company

Member of Deloitte Touche Tohmatsu

12

Oeloitte M Yousuf Adil Saleem amp Co Chartered Accountants

(c) in our OplnlOn and to the best of our information and according to the explanations given to us the balance sheet receipt and expenditure account together with the notes forming part thereof conform with approved accounting standards as applicable in Pakistan and give the information required by the Companies Ordinance 1984 in the manner so required and respectively give a true and fair view of the state of the Companys affairs as at June 30 2011 and surplus for the year then ended and

(d) in our opinion no Zakat was deductible at source under Zakat and Ushr Ordinance 1980 (XVIII of 1980)

(Engagement Partner)

Date __2__8_S_t_P__2_01_1_

Lahore

Member of Deloitte Touche Tohmatsu

22

PROGRESSIVE EDUCATION NETWORK

BALANCE SHEET AS AT JUNE 30 2011

2011 2010

Notes --------shy Rupees --------shy

NON - CURRENT ASSETS

Property and equipment 4 767799 198374

CURRENT ASSETS

Stores

Advance Income Tax

512587

11659

-824

Cash and bank balances 5 1843831 2907504

2368077 2908328

3135876 3106702

FINANCED BY

Surplus (Deficit) brought forward 1369417 (10051 )

Net surplus (deficit) for the year 1697423 1379468

Accumulated surplus (deficit) 3066840 1369417

CURRENT LIABILITIES

Short term overdraft 75189

Accounts payable 166209669~361 CONTINGENCIES AND COMMITMENTS 6

69036 1737285

3135876 3106702

The annexed notes 1 to 10 form an integral part of these financial statements

Chi

PROGRESSIVE EDUCATION NETWORK RECEIPT AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED JUNE 30 2011

Notes 2011 --------shy Rupees

2010 --------shy

Donations 7 9872860 3559253

Profit on bank deposits 93490 8240

Exchange gain on foreign currency bank account

Total receipts

9966350

200

9966550

3567493 12424

3579917

Less expenses

Staff salaries

Office running expense

School running expense

Communication expenses

Training expenses

Printing and stationery expenses

Entertainment expenses

Advertisement expenses

Legal and statutory expenses

Travelling expenses

Insurance

Audit fee

Bank charges

Depreciation 4

2479445

391654

4219279

14400

200048

223988

4052

30000

23600

486984

16368

30000

9154

140155

175231

194560

1628780

4605

-

107354

-

34310

11400

8976

-

30000

358

4875

Surplus before taxation

8269127

1697423

2200449

1379468

Provision for taxation 8

Net surplus for the year 1697423 1379468

The annexed notes 1 to 10 form an integral part of these financial statements

~ Dlrector

PROGRESSIVE EDUCATION NETWORK NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED JUNE 30 2011

1 GENERAL INFORMATION

11 Progressive Education Network (PEN) was incorporated under section 42 of the Companies Ordinance 1984 as non-profit organization limited by guarantee not having share capital on January 27 2005 The registered office of PEN is situated in Lahore The primary objective of PEN is to encourage promote and make organized effort for the promotion spreading and imparting of education in its broadest possible meaning

12 These financial statements are presented in Pak Rupees which is PENS functional and presentation currency

2 STATEMENT OF COMPLIANCE AND SIGNIFICANT ESTIMATES

21 STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan Approved accounting standards comprise of Accounting and Financial Reporting Standard for Small-Sized Entities (SSEs) issued by the Institute of Chartered Accountants of Pakistan (ICAP) and provisions of and directives issued under the Companies Ordinance 1984 In case requirements differ the provisions or directives of the Companies Ordinance 1984 shall prevail

22 SIGNIFICANT ESTIMATES

The preparation of financial statements in conformity with Accounting and Financial Reporting Standards for Small-Sized Entities (SSEs) requires management to make judgments estimates and assumptions that affect the application of policies and reported amounts of assets liabilities receipt and expenditure The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under circumstances results of which form the basis of making judgment about carrying value of assets and liabilities that are not readily apparent from other sources Actual results may differ from these estimates

The estimates and underlying assumptions are reviewed on an ongoing basis Revisions to accounting estimates are recognized in the period in which estimates are revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods

The areas where assumptions and estimates are significant to the PENs financial statements or where judgment was exercised in application of accounting policies are as follows

- useful life of property and equipment and - provisions and contingencies

3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

31 BASIS OF PREPARATION

These financial statements have been prepared under the historical cost convention except as mentioned in relevant accounting policies to the financial statements The prinCipal accounting policies adopted in the financial statements are stated below

PROGRESSIVE EDUCATION NETWORK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30 2011

32 PROPERTY AND EQUIPMENT

Property and equipment are stated at cost less accumulated depreciation and impairment in value if any Capital work-in-progress is stated at cost less impairment if any

Assets residual values if significant and useful lives are reviewed and adjusted if appropriate at each balance sheet date when significant part of an item of property and equipment have different useful lives they are recognized as separate items of property and equipment

Subsequent costs are recognized as a part of asset only when it is probable that future economic benefits associated with the items will flow to PEN and the cost of the item can be measured reliably All other repair and maintenance costs are charged to receipt and expenditure account during the year in which they are incurred

Depreciation is charged to receipt and expenditure account on straight line basis at the rate specified in the relevant note to the financial statements Depreciation on additions to property and equipment is charged from the month in which an item is available for use while no depreciation is charged for the year in which the item is derecognized disposed off

Gain or loss on disposal of property and equipment if any recognized in the receipt and expenditure account as at when incurred

All expenditures connected with specific assets incurred during installation and construction period are carried under capital work-in-progress These are transferred to specific assets as and when these assets are available for use

33 RECEIPT

Donation is measured at the fair value of the consideration received and is recognized as receipt as and when received

Interest income on bank deposits is accounted for on accrual basis

34 FOREIGN CURRENCY TRANSACTIONS

All monetary assets and liabilities in foreign currency are translated at the rates of exchange prevailing at balance sheet date except those covered under forward exchange contracts if any which are stated at contracted rates Foreign currency transactions are translated at the rates prevailing at the date of transaction except for those covered for forward contracts which are translated at contractual rates

35 OFF SETTING OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES

Financial assets and liabilities are set off in the balance sheet only when PEN has a legally enforceable right to set off the recognized amounts and intends either to settle on a net basis or to realize the assets and settle the liabilities simultaneously

PROGRESSIVE EDUCATION NETWORK NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30 2011

36 PROVISIONS

Provisions are recognized when the company has a present legal or constructive obligation as a result of past events if it is probable that an out flow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount of obligation can be made Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate

37 IMPAIRMENT

At each balance sheet date PEN assesses whether there is any indication that assets may be impaired If such indication exists the carrying amounts of such assets are reviewed to assess whether they are recorded in excess of their recoverable amount Where carrying values exceed the respective recoverable amount assets are written down to their recoverable amounts and the resulting impairment loss is recognized in profit and loss account

The recoverable amount is the higher of an assets fair value less costs to sell and value in use

Where impairment loss subsequently reverses the carrying amount of the asset is increased creased to the revised recoverable amount but limited to the extent of carrying amount that would have been determined had no impairment loss been recognized for that asset Reversal of impairment loss is recognized as income

PROGRESSIVE EDUCATION NETWORK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30 2011

4 PROPERTY AND EQUIPMENT

41 As at June 30 2011

Particulars

COST ACCUMULATED DEPRECIAnON Written down value as at June 30 2011

Annual I

depreciation I

rate As at July 012010

Additions (Deletions)

As at June 30 2011

As at July For the year

As at June 01 2010 30 2011

--- -------------------------------------------------- (Rupees) ---------------------------------------------------shy

Office equipments 86249 28700 114949 2925 26485 29410 85539 25

Furniture and fixtures 117000 30880 147880 1950 27003 28953 118927 20

Vehicles 650000 650000 86667 86667 563333 20

Total 203249 709580 912829 4875 140155 145030 767799

42 As at June 30 2010

Particulars

COST ACCUMULATED DEPRECIATION Written down value as at June 30 2010

Annual depreciation

rate As at July 01 2009

Additions (Deletion)

As at June 30 2010

As at July For the year

As at June 01 2009 30 2010

----------------------------------------------------shy (Rupees) ---------------------------------------------------shy

Office equipments 86249 86249 2925 2925 83324 25

Furniture and fixtures 117000 117000 1950 1950 115050 20

Total 203249 203249 4875 4875 198374

PROGRESSIVE EDUCATION NETWORK NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED JUNE 30 2011

5 CASH AND BANK BALANCES

Note 2011 2010 --------shy Rupees --------shy

Cash in hand 30549 161

Cash at bank

Local currency - current account

Local currency - saving account

Foreign currency - current account

51

197573

1573735

41974 1843831

2865569

41774 2907504

51 Effective mark-up rate on these 506 to 510) per annum

accounts range from 527 to 533 (June 30 2010

6 CONTINGENCIES AND COMMITMENTS

There are no known contingencies and commitment as at June 30 2011 ( 2010 Nil)

7 DONATIONS

From directors

From others

3941000

5931860

9872860

3059153

500100

3559253

8 PROVISION FOR TAXATION

Provision for taxation has not been recognized in these financial statements as the PEN is a non-profit organization and its income is exempt from income tax under Clause 60 of Part 1 of the Second Schedule to the Income Tax Ordinance 2001

9 TRANSACTIONS WITH RELATED PARTIES

There has been no related party transactions other than donations received from directors as disclosed in relevant note

10 DATE OF AUTHORIZATION FOR ISSUE 2 B ~tP 2011

These financial statements are authorized for issue on ________ by the Board

of Directors of the Progressive Education Network

11 GENERAL

Fgures have been rounded off to the nearest rupee

PROGRESSIVE EDUCATION NETWORK

BALANCE SHEET AS AT JUNE 30 2011

2011 2010

Notes --------shy Rupees --------shy

NON - CURRENT ASSETS

Property and equipment 4 767799 198374

CURRENT ASSETS

Stores

Advance Income Tax

512587

11659

-824

Cash and bank balances 5 1843831 2907504

2368077 2908328

3135876 3106702

FINANCED BY

Surplus (Deficit) brought forward 1369417 (10051 )

Net surplus (deficit) for the year 1697423 1379468

Accumulated surplus (deficit) 3066840 1369417

CURRENT LIABILITIES

Short term overdraft 75189

Accounts payable 166209669~361 CONTINGENCIES AND COMMITMENTS 6

69036 1737285

3135876 3106702

The annexed notes 1 to 10 form an integral part of these financial statements

Chi

PROGRESSIVE EDUCATION NETWORK RECEIPT AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED JUNE 30 2011

Notes 2011 --------shy Rupees

2010 --------shy

Donations 7 9872860 3559253

Profit on bank deposits 93490 8240

Exchange gain on foreign currency bank account

Total receipts

9966350

200

9966550

3567493 12424

3579917

Less expenses

Staff salaries

Office running expense

School running expense

Communication expenses

Training expenses

Printing and stationery expenses

Entertainment expenses

Advertisement expenses

Legal and statutory expenses

Travelling expenses

Insurance

Audit fee

Bank charges

Depreciation 4

2479445

391654

4219279

14400

200048

223988

4052

30000

23600

486984

16368

30000

9154

140155

175231

194560

1628780

4605

-

107354

-

34310

11400

8976

-

30000

358

4875

Surplus before taxation

8269127

1697423

2200449

1379468

Provision for taxation 8

Net surplus for the year 1697423 1379468

The annexed notes 1 to 10 form an integral part of these financial statements

~ Dlrector

PROGRESSIVE EDUCATION NETWORK NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED JUNE 30 2011

1 GENERAL INFORMATION

11 Progressive Education Network (PEN) was incorporated under section 42 of the Companies Ordinance 1984 as non-profit organization limited by guarantee not having share capital on January 27 2005 The registered office of PEN is situated in Lahore The primary objective of PEN is to encourage promote and make organized effort for the promotion spreading and imparting of education in its broadest possible meaning

12 These financial statements are presented in Pak Rupees which is PENS functional and presentation currency

2 STATEMENT OF COMPLIANCE AND SIGNIFICANT ESTIMATES

21 STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan Approved accounting standards comprise of Accounting and Financial Reporting Standard for Small-Sized Entities (SSEs) issued by the Institute of Chartered Accountants of Pakistan (ICAP) and provisions of and directives issued under the Companies Ordinance 1984 In case requirements differ the provisions or directives of the Companies Ordinance 1984 shall prevail

22 SIGNIFICANT ESTIMATES

The preparation of financial statements in conformity with Accounting and Financial Reporting Standards for Small-Sized Entities (SSEs) requires management to make judgments estimates and assumptions that affect the application of policies and reported amounts of assets liabilities receipt and expenditure The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under circumstances results of which form the basis of making judgment about carrying value of assets and liabilities that are not readily apparent from other sources Actual results may differ from these estimates

The estimates and underlying assumptions are reviewed on an ongoing basis Revisions to accounting estimates are recognized in the period in which estimates are revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods

The areas where assumptions and estimates are significant to the PENs financial statements or where judgment was exercised in application of accounting policies are as follows

- useful life of property and equipment and - provisions and contingencies

3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

31 BASIS OF PREPARATION

These financial statements have been prepared under the historical cost convention except as mentioned in relevant accounting policies to the financial statements The prinCipal accounting policies adopted in the financial statements are stated below

PROGRESSIVE EDUCATION NETWORK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30 2011

32 PROPERTY AND EQUIPMENT

Property and equipment are stated at cost less accumulated depreciation and impairment in value if any Capital work-in-progress is stated at cost less impairment if any

Assets residual values if significant and useful lives are reviewed and adjusted if appropriate at each balance sheet date when significant part of an item of property and equipment have different useful lives they are recognized as separate items of property and equipment

Subsequent costs are recognized as a part of asset only when it is probable that future economic benefits associated with the items will flow to PEN and the cost of the item can be measured reliably All other repair and maintenance costs are charged to receipt and expenditure account during the year in which they are incurred

Depreciation is charged to receipt and expenditure account on straight line basis at the rate specified in the relevant note to the financial statements Depreciation on additions to property and equipment is charged from the month in which an item is available for use while no depreciation is charged for the year in which the item is derecognized disposed off

Gain or loss on disposal of property and equipment if any recognized in the receipt and expenditure account as at when incurred

All expenditures connected with specific assets incurred during installation and construction period are carried under capital work-in-progress These are transferred to specific assets as and when these assets are available for use

33 RECEIPT

Donation is measured at the fair value of the consideration received and is recognized as receipt as and when received

Interest income on bank deposits is accounted for on accrual basis

34 FOREIGN CURRENCY TRANSACTIONS

All monetary assets and liabilities in foreign currency are translated at the rates of exchange prevailing at balance sheet date except those covered under forward exchange contracts if any which are stated at contracted rates Foreign currency transactions are translated at the rates prevailing at the date of transaction except for those covered for forward contracts which are translated at contractual rates

35 OFF SETTING OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES

Financial assets and liabilities are set off in the balance sheet only when PEN has a legally enforceable right to set off the recognized amounts and intends either to settle on a net basis or to realize the assets and settle the liabilities simultaneously

PROGRESSIVE EDUCATION NETWORK NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30 2011

36 PROVISIONS

Provisions are recognized when the company has a present legal or constructive obligation as a result of past events if it is probable that an out flow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount of obligation can be made Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate

37 IMPAIRMENT

At each balance sheet date PEN assesses whether there is any indication that assets may be impaired If such indication exists the carrying amounts of such assets are reviewed to assess whether they are recorded in excess of their recoverable amount Where carrying values exceed the respective recoverable amount assets are written down to their recoverable amounts and the resulting impairment loss is recognized in profit and loss account

The recoverable amount is the higher of an assets fair value less costs to sell and value in use

Where impairment loss subsequently reverses the carrying amount of the asset is increased creased to the revised recoverable amount but limited to the extent of carrying amount that would have been determined had no impairment loss been recognized for that asset Reversal of impairment loss is recognized as income

PROGRESSIVE EDUCATION NETWORK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30 2011

4 PROPERTY AND EQUIPMENT

41 As at June 30 2011

Particulars

COST ACCUMULATED DEPRECIAnON Written down value as at June 30 2011

Annual I

depreciation I

rate As at July 012010

Additions (Deletions)

As at June 30 2011

As at July For the year

As at June 01 2010 30 2011

--- -------------------------------------------------- (Rupees) ---------------------------------------------------shy

Office equipments 86249 28700 114949 2925 26485 29410 85539 25

Furniture and fixtures 117000 30880 147880 1950 27003 28953 118927 20

Vehicles 650000 650000 86667 86667 563333 20

Total 203249 709580 912829 4875 140155 145030 767799

42 As at June 30 2010

Particulars

COST ACCUMULATED DEPRECIATION Written down value as at June 30 2010

Annual depreciation

rate As at July 01 2009

Additions (Deletion)

As at June 30 2010

As at July For the year

As at June 01 2009 30 2010

----------------------------------------------------shy (Rupees) ---------------------------------------------------shy

Office equipments 86249 86249 2925 2925 83324 25

Furniture and fixtures 117000 117000 1950 1950 115050 20

Total 203249 203249 4875 4875 198374

PROGRESSIVE EDUCATION NETWORK NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED JUNE 30 2011

5 CASH AND BANK BALANCES

Note 2011 2010 --------shy Rupees --------shy

Cash in hand 30549 161

Cash at bank

Local currency - current account

Local currency - saving account

Foreign currency - current account

51

197573

1573735

41974 1843831

2865569

41774 2907504

51 Effective mark-up rate on these 506 to 510) per annum

accounts range from 527 to 533 (June 30 2010

6 CONTINGENCIES AND COMMITMENTS

There are no known contingencies and commitment as at June 30 2011 ( 2010 Nil)

7 DONATIONS

From directors

From others

3941000

5931860

9872860

3059153

500100

3559253

8 PROVISION FOR TAXATION

Provision for taxation has not been recognized in these financial statements as the PEN is a non-profit organization and its income is exempt from income tax under Clause 60 of Part 1 of the Second Schedule to the Income Tax Ordinance 2001

9 TRANSACTIONS WITH RELATED PARTIES

There has been no related party transactions other than donations received from directors as disclosed in relevant note

10 DATE OF AUTHORIZATION FOR ISSUE 2 B ~tP 2011

These financial statements are authorized for issue on ________ by the Board

of Directors of the Progressive Education Network

11 GENERAL

Fgures have been rounded off to the nearest rupee

PROGRESSIVE EDUCATION NETWORK RECEIPT AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED JUNE 30 2011

Notes 2011 --------shy Rupees

2010 --------shy

Donations 7 9872860 3559253

Profit on bank deposits 93490 8240

Exchange gain on foreign currency bank account

Total receipts

9966350

200

9966550

3567493 12424

3579917

Less expenses

Staff salaries

Office running expense

School running expense

Communication expenses

Training expenses

Printing and stationery expenses

Entertainment expenses

Advertisement expenses

Legal and statutory expenses

Travelling expenses

Insurance

Audit fee

Bank charges

Depreciation 4

2479445

391654

4219279

14400

200048

223988

4052

30000

23600

486984

16368

30000

9154

140155

175231

194560

1628780

4605

-

107354

-

34310

11400

8976

-

30000

358

4875

Surplus before taxation

8269127

1697423

2200449

1379468

Provision for taxation 8

Net surplus for the year 1697423 1379468

The annexed notes 1 to 10 form an integral part of these financial statements

~ Dlrector

PROGRESSIVE EDUCATION NETWORK NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED JUNE 30 2011

1 GENERAL INFORMATION

11 Progressive Education Network (PEN) was incorporated under section 42 of the Companies Ordinance 1984 as non-profit organization limited by guarantee not having share capital on January 27 2005 The registered office of PEN is situated in Lahore The primary objective of PEN is to encourage promote and make organized effort for the promotion spreading and imparting of education in its broadest possible meaning

12 These financial statements are presented in Pak Rupees which is PENS functional and presentation currency

2 STATEMENT OF COMPLIANCE AND SIGNIFICANT ESTIMATES

21 STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan Approved accounting standards comprise of Accounting and Financial Reporting Standard for Small-Sized Entities (SSEs) issued by the Institute of Chartered Accountants of Pakistan (ICAP) and provisions of and directives issued under the Companies Ordinance 1984 In case requirements differ the provisions or directives of the Companies Ordinance 1984 shall prevail

22 SIGNIFICANT ESTIMATES

The preparation of financial statements in conformity with Accounting and Financial Reporting Standards for Small-Sized Entities (SSEs) requires management to make judgments estimates and assumptions that affect the application of policies and reported amounts of assets liabilities receipt and expenditure The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under circumstances results of which form the basis of making judgment about carrying value of assets and liabilities that are not readily apparent from other sources Actual results may differ from these estimates

The estimates and underlying assumptions are reviewed on an ongoing basis Revisions to accounting estimates are recognized in the period in which estimates are revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods

The areas where assumptions and estimates are significant to the PENs financial statements or where judgment was exercised in application of accounting policies are as follows

- useful life of property and equipment and - provisions and contingencies

3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

31 BASIS OF PREPARATION

These financial statements have been prepared under the historical cost convention except as mentioned in relevant accounting policies to the financial statements The prinCipal accounting policies adopted in the financial statements are stated below

PROGRESSIVE EDUCATION NETWORK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30 2011

32 PROPERTY AND EQUIPMENT

Property and equipment are stated at cost less accumulated depreciation and impairment in value if any Capital work-in-progress is stated at cost less impairment if any

Assets residual values if significant and useful lives are reviewed and adjusted if appropriate at each balance sheet date when significant part of an item of property and equipment have different useful lives they are recognized as separate items of property and equipment

Subsequent costs are recognized as a part of asset only when it is probable that future economic benefits associated with the items will flow to PEN and the cost of the item can be measured reliably All other repair and maintenance costs are charged to receipt and expenditure account during the year in which they are incurred

Depreciation is charged to receipt and expenditure account on straight line basis at the rate specified in the relevant note to the financial statements Depreciation on additions to property and equipment is charged from the month in which an item is available for use while no depreciation is charged for the year in which the item is derecognized disposed off

Gain or loss on disposal of property and equipment if any recognized in the receipt and expenditure account as at when incurred

All expenditures connected with specific assets incurred during installation and construction period are carried under capital work-in-progress These are transferred to specific assets as and when these assets are available for use

33 RECEIPT

Donation is measured at the fair value of the consideration received and is recognized as receipt as and when received

Interest income on bank deposits is accounted for on accrual basis

34 FOREIGN CURRENCY TRANSACTIONS

All monetary assets and liabilities in foreign currency are translated at the rates of exchange prevailing at balance sheet date except those covered under forward exchange contracts if any which are stated at contracted rates Foreign currency transactions are translated at the rates prevailing at the date of transaction except for those covered for forward contracts which are translated at contractual rates

35 OFF SETTING OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES

Financial assets and liabilities are set off in the balance sheet only when PEN has a legally enforceable right to set off the recognized amounts and intends either to settle on a net basis or to realize the assets and settle the liabilities simultaneously

PROGRESSIVE EDUCATION NETWORK NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30 2011

36 PROVISIONS

Provisions are recognized when the company has a present legal or constructive obligation as a result of past events if it is probable that an out flow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount of obligation can be made Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate

37 IMPAIRMENT

At each balance sheet date PEN assesses whether there is any indication that assets may be impaired If such indication exists the carrying amounts of such assets are reviewed to assess whether they are recorded in excess of their recoverable amount Where carrying values exceed the respective recoverable amount assets are written down to their recoverable amounts and the resulting impairment loss is recognized in profit and loss account

The recoverable amount is the higher of an assets fair value less costs to sell and value in use

Where impairment loss subsequently reverses the carrying amount of the asset is increased creased to the revised recoverable amount but limited to the extent of carrying amount that would have been determined had no impairment loss been recognized for that asset Reversal of impairment loss is recognized as income

PROGRESSIVE EDUCATION NETWORK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30 2011

4 PROPERTY AND EQUIPMENT

41 As at June 30 2011

Particulars

COST ACCUMULATED DEPRECIAnON Written down value as at June 30 2011

Annual I

depreciation I

rate As at July 012010

Additions (Deletions)

As at June 30 2011

As at July For the year

As at June 01 2010 30 2011

--- -------------------------------------------------- (Rupees) ---------------------------------------------------shy

Office equipments 86249 28700 114949 2925 26485 29410 85539 25

Furniture and fixtures 117000 30880 147880 1950 27003 28953 118927 20

Vehicles 650000 650000 86667 86667 563333 20

Total 203249 709580 912829 4875 140155 145030 767799

42 As at June 30 2010

Particulars

COST ACCUMULATED DEPRECIATION Written down value as at June 30 2010

Annual depreciation

rate As at July 01 2009

Additions (Deletion)

As at June 30 2010

As at July For the year

As at June 01 2009 30 2010

----------------------------------------------------shy (Rupees) ---------------------------------------------------shy

Office equipments 86249 86249 2925 2925 83324 25

Furniture and fixtures 117000 117000 1950 1950 115050 20

Total 203249 203249 4875 4875 198374

PROGRESSIVE EDUCATION NETWORK NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED JUNE 30 2011

5 CASH AND BANK BALANCES

Note 2011 2010 --------shy Rupees --------shy

Cash in hand 30549 161

Cash at bank

Local currency - current account

Local currency - saving account

Foreign currency - current account

51

197573

1573735

41974 1843831

2865569

41774 2907504

51 Effective mark-up rate on these 506 to 510) per annum

accounts range from 527 to 533 (June 30 2010

6 CONTINGENCIES AND COMMITMENTS

There are no known contingencies and commitment as at June 30 2011 ( 2010 Nil)

7 DONATIONS

From directors

From others

3941000

5931860

9872860

3059153

500100

3559253

8 PROVISION FOR TAXATION

Provision for taxation has not been recognized in these financial statements as the PEN is a non-profit organization and its income is exempt from income tax under Clause 60 of Part 1 of the Second Schedule to the Income Tax Ordinance 2001

9 TRANSACTIONS WITH RELATED PARTIES

There has been no related party transactions other than donations received from directors as disclosed in relevant note

10 DATE OF AUTHORIZATION FOR ISSUE 2 B ~tP 2011

These financial statements are authorized for issue on ________ by the Board

of Directors of the Progressive Education Network

11 GENERAL

Fgures have been rounded off to the nearest rupee

PROGRESSIVE EDUCATION NETWORK NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED JUNE 30 2011

1 GENERAL INFORMATION

11 Progressive Education Network (PEN) was incorporated under section 42 of the Companies Ordinance 1984 as non-profit organization limited by guarantee not having share capital on January 27 2005 The registered office of PEN is situated in Lahore The primary objective of PEN is to encourage promote and make organized effort for the promotion spreading and imparting of education in its broadest possible meaning

12 These financial statements are presented in Pak Rupees which is PENS functional and presentation currency

2 STATEMENT OF COMPLIANCE AND SIGNIFICANT ESTIMATES

21 STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan Approved accounting standards comprise of Accounting and Financial Reporting Standard for Small-Sized Entities (SSEs) issued by the Institute of Chartered Accountants of Pakistan (ICAP) and provisions of and directives issued under the Companies Ordinance 1984 In case requirements differ the provisions or directives of the Companies Ordinance 1984 shall prevail

22 SIGNIFICANT ESTIMATES

The preparation of financial statements in conformity with Accounting and Financial Reporting Standards for Small-Sized Entities (SSEs) requires management to make judgments estimates and assumptions that affect the application of policies and reported amounts of assets liabilities receipt and expenditure The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under circumstances results of which form the basis of making judgment about carrying value of assets and liabilities that are not readily apparent from other sources Actual results may differ from these estimates

The estimates and underlying assumptions are reviewed on an ongoing basis Revisions to accounting estimates are recognized in the period in which estimates are revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods

The areas where assumptions and estimates are significant to the PENs financial statements or where judgment was exercised in application of accounting policies are as follows

- useful life of property and equipment and - provisions and contingencies

3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

31 BASIS OF PREPARATION

These financial statements have been prepared under the historical cost convention except as mentioned in relevant accounting policies to the financial statements The prinCipal accounting policies adopted in the financial statements are stated below

PROGRESSIVE EDUCATION NETWORK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30 2011

32 PROPERTY AND EQUIPMENT

Property and equipment are stated at cost less accumulated depreciation and impairment in value if any Capital work-in-progress is stated at cost less impairment if any

Assets residual values if significant and useful lives are reviewed and adjusted if appropriate at each balance sheet date when significant part of an item of property and equipment have different useful lives they are recognized as separate items of property and equipment

Subsequent costs are recognized as a part of asset only when it is probable that future economic benefits associated with the items will flow to PEN and the cost of the item can be measured reliably All other repair and maintenance costs are charged to receipt and expenditure account during the year in which they are incurred

Depreciation is charged to receipt and expenditure account on straight line basis at the rate specified in the relevant note to the financial statements Depreciation on additions to property and equipment is charged from the month in which an item is available for use while no depreciation is charged for the year in which the item is derecognized disposed off

Gain or loss on disposal of property and equipment if any recognized in the receipt and expenditure account as at when incurred

All expenditures connected with specific assets incurred during installation and construction period are carried under capital work-in-progress These are transferred to specific assets as and when these assets are available for use

33 RECEIPT

Donation is measured at the fair value of the consideration received and is recognized as receipt as and when received

Interest income on bank deposits is accounted for on accrual basis

34 FOREIGN CURRENCY TRANSACTIONS

All monetary assets and liabilities in foreign currency are translated at the rates of exchange prevailing at balance sheet date except those covered under forward exchange contracts if any which are stated at contracted rates Foreign currency transactions are translated at the rates prevailing at the date of transaction except for those covered for forward contracts which are translated at contractual rates

35 OFF SETTING OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES

Financial assets and liabilities are set off in the balance sheet only when PEN has a legally enforceable right to set off the recognized amounts and intends either to settle on a net basis or to realize the assets and settle the liabilities simultaneously

PROGRESSIVE EDUCATION NETWORK NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30 2011

36 PROVISIONS

Provisions are recognized when the company has a present legal or constructive obligation as a result of past events if it is probable that an out flow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount of obligation can be made Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate

37 IMPAIRMENT

At each balance sheet date PEN assesses whether there is any indication that assets may be impaired If such indication exists the carrying amounts of such assets are reviewed to assess whether they are recorded in excess of their recoverable amount Where carrying values exceed the respective recoverable amount assets are written down to their recoverable amounts and the resulting impairment loss is recognized in profit and loss account

The recoverable amount is the higher of an assets fair value less costs to sell and value in use

Where impairment loss subsequently reverses the carrying amount of the asset is increased creased to the revised recoverable amount but limited to the extent of carrying amount that would have been determined had no impairment loss been recognized for that asset Reversal of impairment loss is recognized as income

PROGRESSIVE EDUCATION NETWORK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30 2011

4 PROPERTY AND EQUIPMENT

41 As at June 30 2011

Particulars

COST ACCUMULATED DEPRECIAnON Written down value as at June 30 2011

Annual I

depreciation I

rate As at July 012010

Additions (Deletions)

As at June 30 2011

As at July For the year

As at June 01 2010 30 2011

--- -------------------------------------------------- (Rupees) ---------------------------------------------------shy

Office equipments 86249 28700 114949 2925 26485 29410 85539 25

Furniture and fixtures 117000 30880 147880 1950 27003 28953 118927 20

Vehicles 650000 650000 86667 86667 563333 20

Total 203249 709580 912829 4875 140155 145030 767799

42 As at June 30 2010

Particulars

COST ACCUMULATED DEPRECIATION Written down value as at June 30 2010

Annual depreciation

rate As at July 01 2009

Additions (Deletion)

As at June 30 2010

As at July For the year

As at June 01 2009 30 2010

----------------------------------------------------shy (Rupees) ---------------------------------------------------shy

Office equipments 86249 86249 2925 2925 83324 25

Furniture and fixtures 117000 117000 1950 1950 115050 20

Total 203249 203249 4875 4875 198374

PROGRESSIVE EDUCATION NETWORK NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED JUNE 30 2011

5 CASH AND BANK BALANCES

Note 2011 2010 --------shy Rupees --------shy

Cash in hand 30549 161

Cash at bank

Local currency - current account

Local currency - saving account

Foreign currency - current account

51

197573

1573735

41974 1843831

2865569

41774 2907504

51 Effective mark-up rate on these 506 to 510) per annum

accounts range from 527 to 533 (June 30 2010

6 CONTINGENCIES AND COMMITMENTS

There are no known contingencies and commitment as at June 30 2011 ( 2010 Nil)

7 DONATIONS

From directors

From others

3941000

5931860

9872860

3059153

500100

3559253

8 PROVISION FOR TAXATION

Provision for taxation has not been recognized in these financial statements as the PEN is a non-profit organization and its income is exempt from income tax under Clause 60 of Part 1 of the Second Schedule to the Income Tax Ordinance 2001

9 TRANSACTIONS WITH RELATED PARTIES

There has been no related party transactions other than donations received from directors as disclosed in relevant note

10 DATE OF AUTHORIZATION FOR ISSUE 2 B ~tP 2011

These financial statements are authorized for issue on ________ by the Board

of Directors of the Progressive Education Network

11 GENERAL

Fgures have been rounded off to the nearest rupee

PROGRESSIVE EDUCATION NETWORK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30 2011

32 PROPERTY AND EQUIPMENT

Property and equipment are stated at cost less accumulated depreciation and impairment in value if any Capital work-in-progress is stated at cost less impairment if any

Assets residual values if significant and useful lives are reviewed and adjusted if appropriate at each balance sheet date when significant part of an item of property and equipment have different useful lives they are recognized as separate items of property and equipment

Subsequent costs are recognized as a part of asset only when it is probable that future economic benefits associated with the items will flow to PEN and the cost of the item can be measured reliably All other repair and maintenance costs are charged to receipt and expenditure account during the year in which they are incurred

Depreciation is charged to receipt and expenditure account on straight line basis at the rate specified in the relevant note to the financial statements Depreciation on additions to property and equipment is charged from the month in which an item is available for use while no depreciation is charged for the year in which the item is derecognized disposed off

Gain or loss on disposal of property and equipment if any recognized in the receipt and expenditure account as at when incurred

All expenditures connected with specific assets incurred during installation and construction period are carried under capital work-in-progress These are transferred to specific assets as and when these assets are available for use

33 RECEIPT

Donation is measured at the fair value of the consideration received and is recognized as receipt as and when received

Interest income on bank deposits is accounted for on accrual basis

34 FOREIGN CURRENCY TRANSACTIONS

All monetary assets and liabilities in foreign currency are translated at the rates of exchange prevailing at balance sheet date except those covered under forward exchange contracts if any which are stated at contracted rates Foreign currency transactions are translated at the rates prevailing at the date of transaction except for those covered for forward contracts which are translated at contractual rates

35 OFF SETTING OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES

Financial assets and liabilities are set off in the balance sheet only when PEN has a legally enforceable right to set off the recognized amounts and intends either to settle on a net basis or to realize the assets and settle the liabilities simultaneously

PROGRESSIVE EDUCATION NETWORK NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30 2011

36 PROVISIONS

Provisions are recognized when the company has a present legal or constructive obligation as a result of past events if it is probable that an out flow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount of obligation can be made Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate

37 IMPAIRMENT

At each balance sheet date PEN assesses whether there is any indication that assets may be impaired If such indication exists the carrying amounts of such assets are reviewed to assess whether they are recorded in excess of their recoverable amount Where carrying values exceed the respective recoverable amount assets are written down to their recoverable amounts and the resulting impairment loss is recognized in profit and loss account

The recoverable amount is the higher of an assets fair value less costs to sell and value in use

Where impairment loss subsequently reverses the carrying amount of the asset is increased creased to the revised recoverable amount but limited to the extent of carrying amount that would have been determined had no impairment loss been recognized for that asset Reversal of impairment loss is recognized as income

PROGRESSIVE EDUCATION NETWORK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30 2011

4 PROPERTY AND EQUIPMENT

41 As at June 30 2011

Particulars

COST ACCUMULATED DEPRECIAnON Written down value as at June 30 2011

Annual I

depreciation I

rate As at July 012010

Additions (Deletions)

As at June 30 2011

As at July For the year

As at June 01 2010 30 2011

--- -------------------------------------------------- (Rupees) ---------------------------------------------------shy

Office equipments 86249 28700 114949 2925 26485 29410 85539 25

Furniture and fixtures 117000 30880 147880 1950 27003 28953 118927 20

Vehicles 650000 650000 86667 86667 563333 20

Total 203249 709580 912829 4875 140155 145030 767799

42 As at June 30 2010

Particulars

COST ACCUMULATED DEPRECIATION Written down value as at June 30 2010

Annual depreciation

rate As at July 01 2009

Additions (Deletion)

As at June 30 2010

As at July For the year

As at June 01 2009 30 2010

----------------------------------------------------shy (Rupees) ---------------------------------------------------shy

Office equipments 86249 86249 2925 2925 83324 25

Furniture and fixtures 117000 117000 1950 1950 115050 20

Total 203249 203249 4875 4875 198374

PROGRESSIVE EDUCATION NETWORK NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED JUNE 30 2011

5 CASH AND BANK BALANCES

Note 2011 2010 --------shy Rupees --------shy

Cash in hand 30549 161

Cash at bank

Local currency - current account

Local currency - saving account

Foreign currency - current account

51

197573

1573735

41974 1843831

2865569

41774 2907504

51 Effective mark-up rate on these 506 to 510) per annum

accounts range from 527 to 533 (June 30 2010

6 CONTINGENCIES AND COMMITMENTS

There are no known contingencies and commitment as at June 30 2011 ( 2010 Nil)

7 DONATIONS

From directors

From others

3941000

5931860

9872860

3059153

500100

3559253

8 PROVISION FOR TAXATION

Provision for taxation has not been recognized in these financial statements as the PEN is a non-profit organization and its income is exempt from income tax under Clause 60 of Part 1 of the Second Schedule to the Income Tax Ordinance 2001

9 TRANSACTIONS WITH RELATED PARTIES

There has been no related party transactions other than donations received from directors as disclosed in relevant note

10 DATE OF AUTHORIZATION FOR ISSUE 2 B ~tP 2011

These financial statements are authorized for issue on ________ by the Board

of Directors of the Progressive Education Network

11 GENERAL

Fgures have been rounded off to the nearest rupee

PROGRESSIVE EDUCATION NETWORK NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30 2011

36 PROVISIONS

Provisions are recognized when the company has a present legal or constructive obligation as a result of past events if it is probable that an out flow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount of obligation can be made Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate

37 IMPAIRMENT

At each balance sheet date PEN assesses whether there is any indication that assets may be impaired If such indication exists the carrying amounts of such assets are reviewed to assess whether they are recorded in excess of their recoverable amount Where carrying values exceed the respective recoverable amount assets are written down to their recoverable amounts and the resulting impairment loss is recognized in profit and loss account

The recoverable amount is the higher of an assets fair value less costs to sell and value in use

Where impairment loss subsequently reverses the carrying amount of the asset is increased creased to the revised recoverable amount but limited to the extent of carrying amount that would have been determined had no impairment loss been recognized for that asset Reversal of impairment loss is recognized as income

PROGRESSIVE EDUCATION NETWORK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30 2011

4 PROPERTY AND EQUIPMENT

41 As at June 30 2011

Particulars

COST ACCUMULATED DEPRECIAnON Written down value as at June 30 2011

Annual I

depreciation I

rate As at July 012010

Additions (Deletions)

As at June 30 2011

As at July For the year

As at June 01 2010 30 2011

--- -------------------------------------------------- (Rupees) ---------------------------------------------------shy

Office equipments 86249 28700 114949 2925 26485 29410 85539 25

Furniture and fixtures 117000 30880 147880 1950 27003 28953 118927 20

Vehicles 650000 650000 86667 86667 563333 20

Total 203249 709580 912829 4875 140155 145030 767799

42 As at June 30 2010

Particulars

COST ACCUMULATED DEPRECIATION Written down value as at June 30 2010

Annual depreciation

rate As at July 01 2009

Additions (Deletion)

As at June 30 2010

As at July For the year

As at June 01 2009 30 2010

----------------------------------------------------shy (Rupees) ---------------------------------------------------shy

Office equipments 86249 86249 2925 2925 83324 25

Furniture and fixtures 117000 117000 1950 1950 115050 20

Total 203249 203249 4875 4875 198374

PROGRESSIVE EDUCATION NETWORK NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED JUNE 30 2011

5 CASH AND BANK BALANCES

Note 2011 2010 --------shy Rupees --------shy

Cash in hand 30549 161

Cash at bank

Local currency - current account

Local currency - saving account

Foreign currency - current account

51

197573

1573735

41974 1843831

2865569

41774 2907504

51 Effective mark-up rate on these 506 to 510) per annum

accounts range from 527 to 533 (June 30 2010

6 CONTINGENCIES AND COMMITMENTS

There are no known contingencies and commitment as at June 30 2011 ( 2010 Nil)

7 DONATIONS

From directors

From others

3941000

5931860

9872860

3059153

500100

3559253

8 PROVISION FOR TAXATION

Provision for taxation has not been recognized in these financial statements as the PEN is a non-profit organization and its income is exempt from income tax under Clause 60 of Part 1 of the Second Schedule to the Income Tax Ordinance 2001

9 TRANSACTIONS WITH RELATED PARTIES

There has been no related party transactions other than donations received from directors as disclosed in relevant note

10 DATE OF AUTHORIZATION FOR ISSUE 2 B ~tP 2011

These financial statements are authorized for issue on ________ by the Board

of Directors of the Progressive Education Network

11 GENERAL

Fgures have been rounded off to the nearest rupee

PROGRESSIVE EDUCATION NETWORK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30 2011

4 PROPERTY AND EQUIPMENT

41 As at June 30 2011

Particulars

COST ACCUMULATED DEPRECIAnON Written down value as at June 30 2011

Annual I

depreciation I

rate As at July 012010

Additions (Deletions)

As at June 30 2011

As at July For the year

As at June 01 2010 30 2011

--- -------------------------------------------------- (Rupees) ---------------------------------------------------shy

Office equipments 86249 28700 114949 2925 26485 29410 85539 25

Furniture and fixtures 117000 30880 147880 1950 27003 28953 118927 20

Vehicles 650000 650000 86667 86667 563333 20

Total 203249 709580 912829 4875 140155 145030 767799

42 As at June 30 2010

Particulars

COST ACCUMULATED DEPRECIATION Written down value as at June 30 2010

Annual depreciation

rate As at July 01 2009

Additions (Deletion)

As at June 30 2010

As at July For the year

As at June 01 2009 30 2010

----------------------------------------------------shy (Rupees) ---------------------------------------------------shy

Office equipments 86249 86249 2925 2925 83324 25

Furniture and fixtures 117000 117000 1950 1950 115050 20

Total 203249 203249 4875 4875 198374

PROGRESSIVE EDUCATION NETWORK NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED JUNE 30 2011

5 CASH AND BANK BALANCES

Note 2011 2010 --------shy Rupees --------shy

Cash in hand 30549 161

Cash at bank

Local currency - current account

Local currency - saving account

Foreign currency - current account

51

197573

1573735

41974 1843831

2865569

41774 2907504

51 Effective mark-up rate on these 506 to 510) per annum

accounts range from 527 to 533 (June 30 2010

6 CONTINGENCIES AND COMMITMENTS

There are no known contingencies and commitment as at June 30 2011 ( 2010 Nil)

7 DONATIONS

From directors

From others

3941000

5931860

9872860

3059153

500100

3559253

8 PROVISION FOR TAXATION

Provision for taxation has not been recognized in these financial statements as the PEN is a non-profit organization and its income is exempt from income tax under Clause 60 of Part 1 of the Second Schedule to the Income Tax Ordinance 2001

9 TRANSACTIONS WITH RELATED PARTIES

There has been no related party transactions other than donations received from directors as disclosed in relevant note

10 DATE OF AUTHORIZATION FOR ISSUE 2 B ~tP 2011

These financial statements are authorized for issue on ________ by the Board

of Directors of the Progressive Education Network

11 GENERAL

Fgures have been rounded off to the nearest rupee

PROGRESSIVE EDUCATION NETWORK NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED JUNE 30 2011

5 CASH AND BANK BALANCES

Note 2011 2010 --------shy Rupees --------shy

Cash in hand 30549 161

Cash at bank

Local currency - current account

Local currency - saving account

Foreign currency - current account

51

197573

1573735

41974 1843831

2865569

41774 2907504

51 Effective mark-up rate on these 506 to 510) per annum

accounts range from 527 to 533 (June 30 2010

6 CONTINGENCIES AND COMMITMENTS

There are no known contingencies and commitment as at June 30 2011 ( 2010 Nil)

7 DONATIONS

From directors

From others

3941000

5931860

9872860

3059153

500100

3559253

8 PROVISION FOR TAXATION

Provision for taxation has not been recognized in these financial statements as the PEN is a non-profit organization and its income is exempt from income tax under Clause 60 of Part 1 of the Second Schedule to the Income Tax Ordinance 2001

9 TRANSACTIONS WITH RELATED PARTIES

There has been no related party transactions other than donations received from directors as disclosed in relevant note

10 DATE OF AUTHORIZATION FOR ISSUE 2 B ~tP 2011

These financial statements are authorized for issue on ________ by the Board

of Directors of the Progressive Education Network

11 GENERAL

Fgures have been rounded off to the nearest rupee