Page 106 - Pakistan Oilfields Limited - Annual Report 2021

REPORT OF THE AUDIT COMMITTEE

FOR THE YEAR ENDED JUNE 30, 2021

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 2020-21, 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, 2021, 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.

104 PAKISTAN OILFIELDS LIMITED