SARITOW SPINNING MILLS LIMITED 44, AUDITORS’ REPORT TO THE MEMBERS sie sigot of SARITOW SPINNING MILLS LIMITED a at June 3, 2006 and the sh flowy statentent and statement oF changes in equity together with the nates forming eal all the infornation and explanations which, We have audited the annexed bi related profit and loss account, part thereat, for the period then ened! anal we state that we have abla best of our know ledge and belief, were nevessary forthe purposes of our audit isthe responsibility of the company's management to establish and maintain a system of internal control, and prepare and present the above said statements in conformity with the approved accounting standards and the requirements of the Companies Ordinance, 19841, Our responsibility is to express an opinion on these statements based on one aut ial statements of the company as al Jure 30,2005 were audited by another auditor whose report dated October (08, 2005 expressed a modified opinion on those nana statements relating to: Non provision of defered taxation with further atlention drawn 10 notes relating to accounts prepared an going concern basis, tax deducted at suarce and subjudice excise duty payable, These modifications in the audit opinion continue in the current year also ‘We conduct our audit in accordance with the auditing standards as applicable in Pakistan, These stand require that wwe plan and perform te audit to abtain reasonable assurance about whether the above said statements ae fice of any I misstatement, An audit includes examining on test basis, evidence supporting the above said statements. An audit also includes assessing the accounting policies and significant estimates made by management, as well as, evaluating the overall presentation of the above said statements. We believe that our audit provides a reasonable basis for our opinion and. after due verification, we report that:- mate a) _asdescribed in note 30.3 tothe financial statements, no provision has been made for potential liability of deferred {taxation amounting to RS. 35.6 million b) in ur opinion, proper books of accounts have been kept the company as required by the companies Ordinance, 1984; ©) inour opinion, except for the effects of paragraph (a); any. The balance sheet and profit and loss account together with the notes thereon have been drawn up i conformity with the Companies Ordinance, 1984, and are in agreement withthe books of accounts and are further in accordance with accounting policies consistently applied. ii. the expenditure incurred during the period was forthe purpose of the company’s business; and ii the business conducted, investments made and the expenditure incurced during the period were in accordance with the objects ofthe company, 4) in our opinion and to the best of our information and according tothe explanations given to us, except for the effects ifany of matter a subscribed in paragraph (a) above; the balance shect, profit and loss account, cash flow Statement and stalement of changes in equity together with the notes forming part thereof conform with approved jecounting standards as applicable in Pakistan, and, give the information required by the Companies Ordinance, 1984, in the manner so required and respectively give true ad fair view ofthe state ofthe company's affairs as at June 30, 2006 and of the Profit, its cash flow and changes in equity forthe period then ended; and ©) without we draw attention to notes 2.2, 9.2 and 15.1 tothe financial statements. 1) inouropinion, no Zakat was deductible at sonice under the Zakat and Usir Ordnance, 1980, LAIIORE: (RATIMANSARFARAZ& CO) October 09, 2006 ‘CHARTERED ACCOUNTANTS ANNUAL REPORT 2008 ‘Scanned wih CamScanner