MS AR 2018 (1)

• The internal audit function has carried out its duties
under the charter defined by the Committee. The
Committee reviews material internal audit findings,
taking appropriate action or bringing the matters to the
Board’s attention where required.
• The Audit Committee on the basis of the internal
audit reports reviewed the adequacy of controls
and compliance shortcomings in areas audited and
discussed corrective actions in the light of management
responses. This has ensured the continual evaluation of
controls and improved compliance.
• The Head of Internal Audit has direct access to the
Chairman of the Audit Committee and the Committee
has ensured staffing of personnel with sufficient
internal audit acumen and that the function has all
necessary access to management and the right to seek
information and explanations.
• 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.
• The Chairman of Audit Committee is an Independent
Non-Executive Director and is a Ph.D. in finance from
the Kelley School of Business Administration, Indiana
University, USA.
• The Audit Committee has ensured that statutory
and regulatory obligations and requirements of best
practices of Governance have been met.
• The external auditors Fazal Mahmood & Co, Chartered
Accountants were allowed necessary coordination with
internal auditors. Major findings (if any) arising from
audits and any matters that the external auditors wished
to highlight were freely discussed with them.
• The external auditors have been allowed direct access
to the Committee and the effectiveness, independence
and objectivity of the auditors has thereby been
ensured. The auditors attended the Annual General
Meeting of the Company held during the year and have
confirmed attendance of the upcoming Annual General
Meeting scheduled for October 27, 2018 and have
indicated their willingness to continue as auditors.
• The Audit Committee reviewed the management
letter issued by the external auditors and the
management response thereto. Observations were
discussed with the auditors and required actions
recorded.
• Appointment of external auditors and fixing of their audit
fee was reviewed and the Audit Committee following
this review, recommended to the Board of Directors
re-appointment of Fazal Mahmood& Co., as external
auditors for the year ending June 30, 2019.
On behalf of the Audit Committee
Sd-
SYED SALMAN ALI SHAH
Chairman Audit Committee
Lahore: September 19, 2018
Annual Report 2018
65