INTERNATIONAL INDUSTRIES LIMITED.

International Industries Limited ("the Company") was incorporated in

Pakistan in 1948 and is quoted on the Karachi, Lahore and Islamabad
Stock Exchanges in Pakistan. The Company is in the business of
manufacturing and marketing of galvanized steel pipes, precision steel
tubes, API line pipes and polyethylene pipes.
These financial statements have been prepared in accordance with
approved accounting standards as applicable in Pakistan. Approved
accounting standards comprise of such International Financial Reporting
Standards (IFRS) issued by the International Accounting Standards Board
as are notified under the Companies Ordinance, 1984, provisions of and
directives issued under the Companies Ordinance, 1984.
Standards, amendments or interpretations which became effective during
the year.
Accounting Standard (IAS) 19 which results in immediate recognition
of actuarial gains or losses and revised basis of calculation for net
finance costs, these standards are either not relevant to the
Company's operations or are not expected to have a significant
impact on the Company's financial statements, other than increased
disclosures in certain cases.
The revised IAS 19 Employee Benefits became effective. The
revised IAS 19 requires actuarial gains and losses to be recognized
immediately in other comprehensive income. Previously, actuarial
gains and losses over and above the corridor limit were amortized
over the expected average remaining working lives of employees.
Deferred tax is recognized using balance sheet liability method, providing
for temporary difference between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts used for
taxation purposes. Trade and other payables are recognized initially at fair
value plus directly attributable cost, if any, and subsequently measured at
amortized cost. A financial asset is assessed at each reporting date to
determine whether there is any objective evidence that it is impaired. A
financial asset is considered to be impaired if objective evidence indicates
that one or more events have had a negative effect on the estimated
future cash flows of that asset.
The Company operates an approved funded gratuity scheme (the plan) for
all employees of the Company. Companys obligation under the scheme is
determined through actuarial valuations carried out at each balance sheet
date under the "Projected Unit Credit Method". Property, plant and
equipment (except freehold and leasehold land and buildings) are stated
at cost less accumulated depreciation and impairment losses, if any.
Freehold and leasehold land are stated at revalued amounts and buildings

on freehold and leasehold land are stated at revalued amounts less

accumulated depreciation. An intangible asset is recognized as an asset if
it is probable that future economic benefits attributable to the asset will
flow to the entity and the cost of such asset can be measured reliably.