KATHMANDU A NNUAL REPORT  2013 29 financial statements FOR THE YEAR ENDED 31 JULY 2013 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 73 1  General information  35 2  Summary of significant accounting policies  35 3  Standards, interpretations and amendments to published standards  41 4  Income and expenses  42 5  Income tax expense  43 6  Reconciliation of net profit after taxation with cash inflow from operating activities  44 7  Cash and cash equivalents  45 8  Trade and other receivables  45 9  Related party disclosures  46 10  Derivative financial instruments  49 11 Inventories 49 12  Property, plant and equipment  50 13  Intangible assets  51 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  62 21 Dividends 63 22  Remuneration of auditors  63 23  Contingent liabilities  63 24  Contingent assets  64 25 Commitments 64 26  Financial risk management  65 27  Segmental information  70 28  Earnings per share  72 29  Earthquake disclosures  72 30  Events occurring after the balance date  72 CONTENTS OF NOTES TO FINANCIAL STATEMENTS