AUDITORS’
REPORT TO THE MEMBERS OF
M/s.
LANDMARK SPINNING INDUSTRIES LIMITED
We
have audited the annexed Balance Sheet of M/s
Landmark Spinning Industries Limited,
as at June 30, 2005 and the related
Profit & Loss Account, Cash Flow Statement and Statement of Changes in
Equity together with the notes forming part thereof (hereinafter collectively
referred to as the “financial statements”), for the period then ended, and we
state that, we have obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for the purpose of our audit.
It
is the 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, 1984. Our responsibility is to express an opinion on
these statements based on our audit.
We
conducted our audit in accordance with the auditing standards as applicable in
Pakistan. These standards require that we plan and perform the audit to obtain
reasonable assurance about whether the above said statements are free of any
material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
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:
a)
in
our opinion, proper books of account have been kept by the company as required
by the Companies Ordinance, 1984;
b)
in
our opinion :-
i)
the
Balance Sheet and Profit & Loss Account together with the notes thereon
have been drawn up in conformity with the Companies Ordinance, 1984, and are in
agreement with the books of account and are further in accordance with the
accounting policies consistently applied;
ii)
the
expenditure incurred during the period was for the purpose of the Company’s
business; and,
iii)
the
business conducted, investments made and the expenditure incurred during the
year were in accordance with the objects of the Company;
c)
in
our opinion and to the best of our information and according to the
explanations given to us, the Balance Sheet, Profit & Loss Account ,Cash
Flow Statement and Statement of Changes in Equity together with the notes
forming part thereof conform with approved accounting standards as applicable
in Pakistan, and, give the information
required by the Companies Ordinance, 1984, in
the manner so required and respectively give a true and
fair view of the state of
the Company’s affairs as at June 30, 2005 and of the Loss its Cash flow and Changes in Equity for the
period then ended; and
d)
In
our opinion “no Zakat was deductible at source under the Zakat and Ushr
ordinance 1980”.
e)
Without
qualifying our opinion, we draw attention to Note.20 in the annexed notes to
the Financial Statements which incurred a net loss of Rs. 43,579,244/- during
the period ended June 30, 2005; and as of that date, the Company’s current
liabilities exceeded its current assets by Rs.56,952,226/= and its total
liabilities exceeded its
total assets by Rs. 29,561,735/=. These conditions, along
with other matters as set forth in Note.20 indicate the existence of a material
uncertainty which may cast significant doubt about the Company’s ability to
continue as a going concern.
KARACHI:
Dated: