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38 Directors’ Report
Reviewed audit reports and significant findings by internal audit on a quarterly basis, response of the
relevant business unit management on their respective findings and status of implementation of
previous recommendations by the internal audit
Facilitating coordination between internal and external auditors to ensure efficiency and
effectiveness and to avoid duplication of work
Reviewed company's statement on internal control systems prior to endorsement by the board of
directors, which statement was also signed by the head of internal audit
On the basis of these considerations the committee concludes that the company's system of internal
control is sound in design and has been effectively implemented and monitored
External Auditors
The external auditors attended those parts of the audit committee meetings in which the financial
statements of the company were considered by the committee. The audit committee also held a
separate meeting with the external auditors in the absence of Chief Financial Officer and Head of
internal audit to discuss issues which the auditor wants to bring to the committee in the absence of
management. The auditors' have confirmed that they have no issue of independence and they have
already reported all their concerns in the board and management letters.
The external auditors have been given satisfactory rating under the Quality Control Review Program of
the Institute of Chartered Accountants of Pakistan (ICAP). The external auditors have confirmed that
their firm is in compliance with International Federation of Accountants (IFAC) guidelines on code of
ethics as adopted by the ICAP. The external auditors have not been appointed to provide other services
except in accordance with the listing regulations and they have confirmed that they have observed IFAC
guidelines in this respect.
The present external auditors, KPMG Taseer Hadi & Co. shall retire at the conclusion of annual general
meeting on November 29, 2008 and being eligible, offer themselves for reappointment for the year
2008-09. As suggested by the Audit Committee, the Board recommends their reappointment for the
year ending September 30, 2009.
Changes in the Audit Committee
The Committee would like to place on record its appreciation on the valuable contribution made by its
outgoing members Mr. Javaid Anwar and Ms. Monika Valtwies towards accomplishment of tasks
provided to it by the Board. The Committee also welcomes Mr. Zahid Hussain and Mr. Klaus Stegemann
who joined the Committee in place of the outgoing members.
Attendance at Audit Committee
Name Category meetings held during FY 07-08
Held Eligible Attended
to attend
Existing Audit Committee Members
Mr. Tajammal H. Bokharee Independent non executive director 4 4 4
Mr. Zahid Hussain Independent non executive director 4 3 2
Mr. Klaus Stegemann Non executive director 4 - -
Mr. Stephan Schneider Non executive director 4 4 3
Outgoing members
Ms Monika Valtwies Non executive director 4 4 4
Mr. Javaid Anwar Independent non executive director 4 1 1