kAThMANdu  annual report 2012 29 financial statements For the year ended 31 July 2012 CONTENTS OF NOTES TO FINANCIAL STATEMENTS Directory 29 Directors’ Approval of Financial Statements  30 Statements of Comprehensive Income  31 Statements of Changes in Equity  32 Balance Sheets  33 Statements of Cash Flows  34 Notes to the Financial Statements  35 Auditors’ Report 72 1  General information  35 2  Summary of significant accounting policies  35 3  Standards, interpretations and amendments to published standards  41 4  Income and expenses  43 5  Income tax expense  44 6  Reconciliaton of net profits after taxation with cash inflow from  operating activities  45 7  Cash and cash equivalents  46 8  Trade and other receivables  46 9  Related party disclosures  47 10  Derivative financial instruments  50 11 Inventories 50 12 Property, plant and equipment  51 13 Intangible assets  52 14  Investment in subsidiaries  53 15 Deferred taxation  54 16 Trade and other payables  55 17 Interest bearing liabilities  56 18 Contributed equity - ordinary shares  57 19  Employee share based remuneration  57 20 Reserves and retained earnings  61 21 Dividends 62 22 Remuneration of auditors  62 23 Contingent liabilities  62 24 Contingent assets  63 25 Commitments 63 26 Financial risk management  64 27 Segmental information  69 28 Earnings per Share  71 29 Earthquake disclosures  71 30 Events occurring after the balance date  71