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REPORT OF THE AUDIT COMMITTEE
FOR THE YEAR ENDED JUNE 30, 2020
The Committee comprises of members possessing appropriate financial acumen and relevant Oil &
Gas experience. The Audit Committee has concluded its annual review of the conduct and operations
of the Company during 2019-20, and reports that:
• The Company has issued a “Statement of Compliance with the Code of Corporate
Governance” which has also been reviewed and certified by the A. F. Ferguson & Co (external
auditors) of the Company.
• Appropriate accounting policies have been consistently applied. All core & other applicable
International financial reporting standards were followed in preparation of financial statements
of the Company and consolidated financial statements on a going concern basis, for the
financial year ended June 30, 2020, which present fairly the state of affairs, results of
operations, profits, cash flows and changes in equities of the Company and its subsidiaries for
the year under review.
• Accounting estimates are based on reasonable and prudent judgment. Proper and adequate
accounting records have been maintained by the Company in accordance with the Companies
Act, 2017. The external reporting is consistent with management processes and adequate for
shareholder needs.
• The Audit Committee has reviewed all related party transactions and has recommended to the
board for approval.
• The Chief Executive and the Chief Financial Officer have endorsed the financial statements
of the Company, Consolidated financial statements and related party transactions. They
acknowledge their responsibility for true and fair presentation of the Company’s financial
condition and results, compliance with regulations and applicable accounting standards and
establishment and maintenance of internal controls and systems of the Company.
• All directors have access to the Company Secretary. All direct or indirect trading and holdings
of Company’s shares by Directors & executives or their spouses were notified in writing to
the Company Secretary along with the price, number of shares, form of share certificates and
nature of transaction which were notified by the Company Secretary to the Board within the
stipulated time. All such holdings have been disclosed in the Pattern of Shareholdings. The
Annual Secretarial Compliance Certificates are being filed regularly within stipulated time.
• Closed periods were duly determined and announced by the Company, precluding Directors,
Chief Executive and executives of the Company from dealing in Company’s shares, prior
to each Board meeting involving announcement of interim / final results, distribution to
shareholders or any other business decision, which could materially affect the share market
price of Company, along with maintenance of confidentiality of all business information.
• The internal control framework has been effectively complemented by an independent in-
house Internal Audit function established by the Board which is independent of the External
Audit function.
• The Company’s system of internal control is sound in design and has been continually
evaluated for effectiveness and adequacy.
• The Internal Audit function has carried out its duties as defined by the Committee. The
Committee has reviewed material Internal Audit findings, taking appropriate action or bringing
the matters to the Board’s attention, where required.
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PAKISTANOILFIELDS LIMITED