Page 81 - CCL AR 2017 Final

Report of the Audit Committee

AUDIT COMMITTEE
Mr. Akbarali Pesnani Chairman 8. The Audit Committee has reviewed and approved all
Mr. Arif Faruque Member related party transactions.
Mr. Asif Qadir Member
9. The Company's system of internal control is sound in
design and is continually evaluated for effectiveness
The Audit Committee of the Company comprises of two and adequacy.
non-executive directors and one independent
non-executive director. The Head of Internal Audit and the INTERNAL AUDIT
external auditors attend Audit Committee meetings. The 1. For appraisal of internal controls and monitoring
Chief Financial Officer (CFO) attends the Audit Committee compliance, the Company has in place an
meeting by invitation. The Audit Committee also separately appropriately staffed, Internal Audit department. The
meets the external auditors at least once a year without the Audit Committee reviewed the resources of the
presence of the Management.
Internal Audit department to ensure that they were
adequate for the planned scope of the Internal Audit
Meetings of the Audit Committee are held at least once function.
every quarter. Four meetings of the Audit Committee were
held during the year 2016-2017. Based on reviews and 2. The Audit Committee on the basis of the internal audit
discussions in these meetings, the Audit Committee reports reports reviewed the adequacy of controls and
that:
compliance shortcomings in areas audited and
discussed corrective actions in the light of
1. The Company has adhered, without any material management responses. This has ensured the continual
departure, with both the mandatory and voluntary evaluation of controls and improved compliance.
provisions of the Pakistan Stock Exchange, Code of
Corporate Governance, Company's code of conduct 3. Head of Internal Audit Department has direct access to
and values and the best practices of governance the Audit Committee. The Internal Audit function has
throughout the year. carried out its duties under the charter defined by the
Committee. The Committee has reviewed material
2. The Company has issued a Statement of Compliance Internal Audit findings, taking appropriate action or
with the Code of Corporate Governance which has bringing the matters to the Board’s attention where
also been reviewed and certified by the auditors of the required.
Company.
EXTERNAL AUDIT
3. The Audit Committee reviewed and approved the 1. The external auditors M/s. EY Ford Rhodes, Chartered
quarterly, half yearly and annual financial statements Accountants were allowed direct access to the Audit
of the Company and recommended them for approval Committee and necessary coordination with internal
of the Board of Directors. auditors was ensured. Major findings arising from
audits and any matters that the external auditors
4. Appropriate accounting policies have been wished to highlight were freely discussed with them.
consistently applied. Applicable International
Accounting Standards were followed in preparation of 2. The Audit Committee has reviewed and discussed
financial statements of the Company on a going Audit observations and Draft Management Letter with
concern basis, which present fairly the state of affairs, the External Auditors. Final Management Letter is
results of operations, cash flows and changes in equity required to be submitted within 45 days of the date of
of the Company. the Auditors’ Report on financial statements under the
listing regulations and shall accordingly be discussed
5. Accounting estimates are based on reasonable and in the next Audit Committee Meeting.
prudent judgment. Proper and adequate accounting
records have been maintained by the Company in 3. Being eligible for reappointment as Auditors of the
accordance with the Companies Ordinance, 1984 and Company, the Audit Committee has recommended the
the external reporting is consistent with management appointment of M/s EY Ford Rhodes, Chartered
processes and adequate for shareholder needs. Accountants as External Auditors of the Company for
the year ending June 30, 2018.
6. The financial statements comply with the requirements
of the Fourth Schedule to the Companies Ordinance,
1984, and applicable International Accounting
Standards and International Financial Reporting
Standards notified by SECP. By order of the
Audit Committee
7. The Chief Executive Officer and the Chief Financial
Officer have signed the financial statements of the
Company. They acknowledge their responsibility for
the true and fair presentation of the financial Akbarali Pesnani
statements, accuracy of reporting, compliance with Chairman,
regulations and applicable accounting standards and Audit Committee
establishment and maintenance of sound internal August 17, 2017
control system of the Company.

79
Annual
Report 2017