06/20/2024

Completed by Reviewed by Reviewed by Schedule

BDO Ebrahim & Co. Qasim Balti (Partner)
Chartered Accountants

CLIENT : Dewan Drilling Limited

PERIOD : 31-Dec-18 Date : Date : Date:
F. S. A. : CASH AND BANK BALANCES 17-Feb-17

INITIAL CONCLUSION
PROCEDURE

PROCEDURE
SELECTED
NUMBER

REVIEW S= Satisfactory
BY STAFF
ASSERTION AUDIT PROCEDURE N=Non-satisfactory SCHEDULE COMMENTS
INITIAL
S or FWQ
Dt:
N REFERENCE
C E A V
A Ebrahim
Ebrahim
Ebrahim
Ebrahim
Ebrahim &SUBSTANTIVE
&
&&
&Co.
Co. Co.
Co.
Co. ANALYTICAL PROCEDURES
Chartered
Chartered
Chartered
CharteredAccountants
CharteredAccountants
Accountants
Accountants
Accountants
P P P 1 Explain movements and investigate any unexpected
or unusual relationships between current year, prior
year and budgeted amounts (e.g. credit balances, S QB
unusually large balances, new accounts, closed
accounts) for cash balances by location or account

2 Explain movements and investigate any unexpected

or unusual relationships between current year, prior
year and budgeted amounts for S QB

P P P a. cash flow by account

P P P b. cash flow by type of income and type of
expenditure

P P P 3 Review the total of cash balances in relation to

the entity's overall financing policies and
comments on reasonableness.

P P P 4 Review cash balances at end of each month and S QB

investigate significant fluctuations

P P P 5 Review interest received/paid in relation to average

cash balances and overdrafts

B OTHER SUBSTANTIVE PROCEDURES

P P P P 1 Agree opening balances with prior year files / S QB

audited accounts.

2 Obtain a schedule of balance of cash in hand; and

P a. check arithmetic accuracy; S QB

P P b. agree to cash book
P P c. agree to general ledger and physical papers;

P P P 3 Circulise banks as per list / trial balance and S QB

confirm accounts and their balances with
confirmation.

4 Obtain listing of closing balances of banks; and

S QB
P a. check arithmetic accuracy ;
P P b. agree amounts to general ledger;
P P c. agree to cash book.

P 5 Ensure and check that Board Resolution has been

passed for bank account opend / closed during the S QB
year.

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 06/20/2024

6 For all bank accounts, obtain reconciliation; and

P a. check arithmetic accuracy;
P P P b. agree balance with direct confirmation from
bank; S QB
P P c. ensure no time barred cheque is included;
P P d. ensure no item requiring adjustment in books of
accounts is included in reconciliation;
P P e. check subsequent clearance of reconciling items.

P P P 7 For all accounts, obtain reconciliation between

balance as confirmed and balance on listing and S QB
check the reconciliation.

P P 8 Reconcile cash receipts and disbursements on bank S QB

statements to cash receipts and disbursements in
cash book for a specified period

P P 9 For selected cash and bank transactions for the

period prior to and after period end, perform cut
off tests to ensure they are recognised in the S QB
current accounting period .

P P P 10 Ascertain whether there have been any material

receipts or payments near the balance sheet date
which distort the entity's liquidity or borrowing
position

P P 11 Agree selected bank transfer / withdrawals to

deposits in other accounts.

P 12 Test translation of foreign currencies S QB

P 13 Examine imprest accounts and ensure that all

expense transactions have been recorded. S QB

GENERAL ASSURANCE BOX

DESCRIPTION C E A V

GR GRADE
GC GRADE
RISK
Ebrahim PROFILE
& Co.
Chartered Accountants
Assurance from:
TOC's
RFSA
SAP
OSP

Assurance sufficient:

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 Prepared by NAB Schedule
Date 20-Feb-2019
Reviewed by < D 11.1>
Date

Client name Dewan Drilling Limited

Period end 31-Dec-18
Account head Cash and bank balances
Subject Lead sheet

Conlcusion
Cash and bank balances are free from material mistatement.

Sr# Description Ref. Current period Ref. Prior period Variance Annot

Rs. Rs. Rs. %age

1 Cash and bank balances <2> 16,707,809 7,345,529 9,362,280 127% {a}

16,707,809 < > 7,345,529 9,362,280

<

Annotations
{a} Cash Increased due to lack of projects during the year, resulting the errosion of available cash.
{b}
 Prepared by NAB Schedule
Date 20-Feb-2019
Reviewed by < D 11.2>
Date

Client name Dewan Drilling Limited

Period end 31-Dec-18
Account head Cash and bank balances
Subject Sub-lead

Purpose
To test that Cash and bank balances have been completely & accurately recorded and disclosed in FS.

Procedure
Agree opening balances with prior year audited accounts.
Explain movements and investigate any unexpected or unusual relationships between current year, prior year and
budgeted amounts (e.g. credit balances, unusually large balances, new accounts, closed accounts) for cash balances by
location or account.

Conclusion
Cash and bank balances are free from material mistatements.

Sr# Description Current period

Ref. Ref. Prior period Variance Annot

Rs. Rs. Rs. %age

Cash in hand <3> 39,686 51,732 (12,046) -23%
Cash at banks: <>
Current accounts
Local currency < 4> 16,195,674 6,918,243 9,277,431 134%
Foreign currency < 4> 472,449 375,554 96,895 26%
16,668,123 7,293,797
16,707,809 < 1 > 7,345,529
<
 Prepared by NAB Schedule
Date 2/20/2019
11.2>
Reviewed by < D 11.3>
Date

Client name Dewan Drilling Limited

Period end 31-Dec-18
Account head Cash in hand
Subject Schedule

Purpose
Ensure that cash balances have been recorded completely and existed at the balance sheet date.
Check that exchange rates have been applied accurately at the closing date (Valuation & Accuracy)

Procedure
- Trace cash balances in trial balance.
- Match balances as per physical cash count with the ledger balances.
- Obtain explanation of any difference and corrobrate with other procedures or evidence.
- Obtain closing rates from a reputable website and compare the translation of foriegn currency.
- Adjust any material differences in foriegn exchange translation.

Conclusion
Cash and bank balances are free from material mistatements.

Amount as per Amount as per

Sr# Account code Location Ref. Difference Annot
ledger physical count

Pakistan Rupee

1 508001 Cash in hand 39,686 39,688 (2)

Total 39,686 39,688

<2>
 Prepared by NAB Schedule
Date 20/02/2019
Reviewed by <D 11.4>
Date

Client name Dewan Drilling Limited

Period end 31-Dec-18
Account head Cash and bank
Subject Bank control sheet

Purpose
Verify that bank balances have been recorded completely and existed at the balance sheet date.

Procedure
- Obtain a list of banks balances as per ledger and as per bank statements and segregate between current and savings accounts.
- Obtain bank reconcilliation statements for the bank accounts where balance as per ledger and as per bank statement are not equal.

- Ensure and check that Board Resolution has been passed for bank account opened / closed during the year.
- For all bank accounts, obtain reconciliation; and
- agree balance with direct confirmation from bank;
- ensure no time barred cheque is included;
- ensure no item requiring adjustment in books of accounts is included in reconciliation;
Obtain closing rates from A reputable website and compare the translation of foriegn currency.
Check that exchange gain /loss has been comletely & accurately recorded.

Conclusion
We believe that bank balances are free from material misstatements.
There are no material differences in foreign exchange translation that needs to be adjusted and exchange gain /loss has been comletely & accurately recorded.

Sr No. Bank As per ledger As per bank Difference Reconciliation Confirmation As per Variance Annot

statement sent on confirmation

Name Branch Account Rs Rs Rs Rs Date Rs Rs

CURRENT ACCOUNTS

Current Accounts - Local currency

1 HBL Corpoarate Center Blue area Islamabad 1853 15,954,469 8,488,981 (7,465,488) Provided 20-Feb-19 (8,488,981)
2 FBL 15,F-7 Markaz Islamabad 4005 652 652 - Provided 20-Feb-19 (652)
3 HBL Taunsa Sharif Branch Taunsa sharif 6003 50,507 50,507 - Provided 20-Feb-19 (50,507)
4 UBL Corporate center UBL tower Blue area Islamabad 5532 3,552 3,552 - Provided 20-Feb-19 (3,552)
5 HBL Corpoarate Center Blue area Islamabad 5403 185,466 210,466 25,000 Provided 20-Feb-19 (185,466)
6 Alfalah G -11 Markaz Islamabad 90615 1,028 1,028 - Provided 20-Feb-19 (1,028)
7 HBL Jinnah road branch Quetta 7903 - - - Provided 20-Feb-19 -
8 HBL Daharaki 3603 - - - Provided 20-Feb-19 -
-
16,195,674 8,755,186
<2>
Current Accounts - Foreign currency
1 HBL Corpoarate Center Blue area Islamabad 70233-1 1,077 1,077 - Provided 20-Feb-19 (1,077)
2 FBL 15,F-7 Markaz Islamabad 4013 2,323 2,323 - Provided 20-Feb-19 (2,323)
-
3,400 <2>
USD Rate Rs Bank
Total foreign currency as per books 3,400 1077 139.11 149,826 HBL
Spot rate 139.00 2323 139.10 323,133 FBL
Equivalent Rs. 472,600 3400 472,959
Balance as per ledger 472,449
Exchange gain/loss 151
 Prepared by NAB Schedule
Date 20-Feb-2019
Reviewed by <D 11.5>
Date

Client name Dewan Drilling Limited

Period end 31-Dec-18
Account head Cash and bank
Subject Subsequent

Purpose
Check that the outstanding cheques and outstanding deposits mentioned in the bank reconciliations existed at the balance sheet date and have been adjusted in
subsequent periods.

Procedure
- Obtain subsequent bank statements.
- Inquire about the nature of outstanding cheques and deposits.
- Trace oustanding cheques and deposits to the subsequent bank statements.

Conclusion
Some of the outstanding cheques have not cleared up to April 3, 2013 making them time barred. An adjusting entry has been proposed as per Journal Reference
<4>.

There were no outstanding desposits at the balance sheet date.

Date issued Party Name Description Date cleared Ref Amount as per Amount as per Annot

reconciliation bank statement

Rs. Rs.
Oustanding cheques
1
2
3
-
<4>
Oustanding deposits
 Prepared by NAB NAB Schedule
Date 20-Feb-2019
Reviewed by
Date

Client name Dewan Drilling Limited

Period end 31-Dec-18
Account head Cash and bank
Subject Cut off - BPV

Purpose
Ensure that cut off of transactions is correct.

Procedure
Obtain five pre and post year end BPVs and cut-off relevant vouchers.
Check that these are the frst and last entries in the respective periods.

Conclusion
Cut off of transactions is correct.

Sr No. Voucher Party name Description Payment Amount Annot

Date No. Through Rs.

Pre-year end
HBL Ch
1 13-Dec-18 248 CIR GST Withhodding payment 20,735
#3868891
HBL Ch
2 10-Dec-18 247 Ufone CEO Bill 2,402
#3868892
3 10-Dec-18 246 Muhammad Sharif Porta Cabin Purchase HBL Ch #96 808
HBL Ch
4 10-Dec-18 245 SBP Porta Cabin Purchase 34,000
#3868893
HBL Ch
5 10-Dec-18 244 CIR Sindh Sales Tax Payment 298,810
#3868894

Post-year end
1
2
3
4
5

Annotations
{a}
{b}
{c}
 Prepared by NAB Schedule
Date 20-Feb-2019
Reviewed by
Date

Client name Dewan Drilling Limited

Period end 31-Dec-18
Account head Cash and bank
Subject Cut off - CPV

Purpose
Ensure that cut off of transactions is correct.

Description
Obtain five pre and post year end CPVs and cut-off relevant vouchers.
Check that these are the frst and last entries in the respective periods.

Conclusion
Cut off of transactions is correct.

Sr No. Voucher Party name Description Payment Amount Annot

Date No. Through Rs.

Pre-year end
1 11-Dec-18 N/A Zahid Azad Photograph Expense Cash 350
2 18-Dec-18 N/A Shafee Farooqui Purchase of medicines Cash 370
3 19-Dec-18 N/A Shafee Farooqui Purchase of medicines Cash 240
4 26-Dec-18 N/A Shafee Farooqui Annual Confrence Cash 12,000
Manager
5 29-Dec-18 N/A POL Cash 11,981
Finance

Post-year end

Annotations
{a}
{b}
{c}
 Prepared by NAB Schedule
Date 20-Feb-2019
Reviewed by
Date

Client name Dewan Drilling Limited

Period end 31-Dec-18
Account head Cash and bank
Subject Cut off - BRV

Purpose
Ensure that cut off of transactions is correct.

Procedure
Obtain five pre and post year end BRVs and cut-off relevant vouchers.
Check that these are the frst and last entries in the respective periods.

Conclusion
Cut off of transactions is correct.

Sr No. Voucher Party name Description Receipt Amount Annot

Date No. Through Rs.

Pre-year end
1 9/24/2018 8016 Hilong Funds from Hilong 14703541 1,273,496
2 9/21/2018 8017 TCPDC Funds from TCPDC 10008141 473,059
3 10/4/2018 8069 Hilong Funds from Hilong N/A 730,297
4 11/6/2018 8137 OGDCL Tender bond refund N/A 1,200,000
5 10/30/2018 8070 Hilong Funds from Hilong N/A 760,718

Post-year end

Annotations
{a}
{b}
{c}
 Prepared by NAB Schedule
Date 20/02/2019
Reviewed by
Date

Client name Dewan Drilling Limited

Period end 31-Dec-18
Account head Cash and bank
Subject Cut off - CRV

Purpose
Ensure that cut off of transactions is correct.

Description
Obtain five pre and post year end CRVs and cut-off relevant vouchers.
Check that these are the frst and last entries in the respective periods.

Conclusion
Cut off of transactions is correct.

Sr No. Voucher Party name Description Receipt Amount Annot

Date No. Through Rs.

Pre-year end
1 12/3/2018 242 Bank Withdrawal Cash 50000
2 9/25/2018 8014 Bank Withdrawal Cash 50000

Post-year end

Annotations
{a}
{b}
{c}