ACCOUNTS PAYABLE- PROCESS

* Invoices relating to Projects and Facility as well as utilities are received at the Head Office (HO). * Accounting for the invoice is done taken into consideration the party on whose behalf will the Head Office be paying. * Head office expenses: * Expenses related to the Head Office, e.g.: Pantry expenses, maintenance of the HO, etc. are booked directly in the books of the Head Office as follows: ACCOUNTS | BUSINESS UNIT CODE | Expense a/c- Debited-Lals Central Warehouse- Ghusais/ Lals International FZCO | 910/1013 | Vendor a/c- Credited/Staff Accommodation | 1012/ 980 |

* Intercompany Expenses: * Expenses relating to various divisions of the group (but not the Associates and Joint-Ventures) are accounted as follows:
IN HO BOOKS: ACCOUNTS | BUSINESS UNIT CODE | GL ACCOUNT NO: | ACCOUNT NO: | Expense a/c- Debited | 1014 | | | Accounts Payable other a/c- Credited | 1012 | 422000 | | IC a/c- Debited | Respective code-diff | 298000 | | Expenses a/c- Credited | 1014 | | 001 |

In the books of Divisions: | | | IC Partner code: | Expense a/c- Debited | | | | Intercompany Accounts Receivable a/c- Credited | Respective code- diff | 298000 | 001 |

* Joint Venture/ Associate Expenses: * Expenses related to the Joint-Ventures/ Associates of the group are accounted as follows: ACCOUNTS | GL A/C NO: | Due from related parties- Debited | 291000 | Accounts Payable- Other Credited | |

* For invoices related to materials/ purchases, the warehouse of the concerned division will pass the entry as follows: ACCOUNTS | | GL ACCOUNT NO: | | Inventory with landed cost a/c | Debit | 271000 | Asset | Goods received without invoice a/c | Credit | 414000 | Liability | Goods received without invoice a/c | Debit | 414000 | Liability | Accrued Freight Anwar a/c | Credit |