Internal Audit Function

• The internal control framework was effectively implemented through outsourcing the internal audit function to M/s EY Ford Rhodes, Chartered Accountants, for the last many years. Presently the Company’s internal Audit function is being looked after by the Chief Internal Auditor in compliance of the Code of Corporate Governance, who is assisted by the internal auditor’s M/s EY Ford Rhodes. The Chief Internal Auditor reports directly to the Chairman of the Board Audit Committee.

• The company’s system of internal control is sound in design and has been continually evaluated for effectiveness and control.

• The Board Audit Committee has ensured the achievement of operational, compliance and financial reporting objectives, safeguarding of the assets of the company and the shareholder’s wealth through effective financial, operational and compliance controls and risk management at all levels within the company.

• Coordination between the external and internal auditors was facilitated to ensure efficiency and contribution to the company’s objectives, including a reliable financial reporting system and compliance with laws and regulations.

External Auditors

• The statutory auditors of the company, KPMG Taseer Hadi & Co, Chartered Accountants, have completed their audit of the company’s financial statements and the Statement of Compliance with the Code of Corporate Governance for the financial year ended 30th June 2018 and shall retire on the conclusion of the 70th Annual General Meeting.

• The final Management Letter is required to be submitted within forty-five (45) days of the date of the Auditors’ Report on the financial statements under the listing regulations and shall therefore accordingly be discussed in the next Board Audit Committee meeting.

• The Audit firm has been given a satisfactory rating under the Quality Control Review Programme of the Institute of Chartered Accountants of Pakistan (ICAP) and the firm is fully compliant with the International Federation of Accountants (IFAC) Guidelines on Code of Ethics, as adopted by ICAP. The auditors have indicated their willingness to continue as auditors.

• Being eligible for reappointment under the listing regulations, the Board Audit Committee recommends their reappointment for the financial year ending 30th June 2019 on terms & remuneration negotiated by the Chief Executive Officer.