S.R.O. 594(I)/2000.-- In exercise of the powers conferred by section 506 of the Companies Ordinance, 1984 (XLVII of 1984), read with clause (b) of section 43 of the Securities and Exchange Commission of Pakistan Act, 1997 (XLII of 1997), and the Finance Division’s Notification No. S.R.O. 698(I)/86, dated 2nd July, 1986, the Securities and Exchange Policy Board hereby makes the following amendments in the Companies (General Provisions and Forms) Rules, 1985, the same having been published previously as required by the proviso to sub-section (1) of said section 506, namely:--

In the aforesaid Rules, for Form 35A the following shall be substituted, namely:--

"FORM 35A
THE COMPANIES ORDINANCE, 1984
[SEE SECTION 255 (3) AND RULE 17A]
AUDITORS’ REPORT TO THE MEMBERS

We have audited the annexed balance sheet of ...............................................................as at.................................and the related *1 profit loss account, *2 cash flow statement and statement of changes in equity together with the notes forming part thereof, for the year 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 purposes 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 include 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 accounts have been kept by the company as required by the Companies Ordinance, 1984;

(b) in our opinion--

(i) the balance sheet and profit and 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 accounts and are further in accordance with accounting policies consistently applied *3 except for the changes as stated in note(s) consistently applied *3 except for the changes as stated in note(s).........................with which we concur;

(ii) the expenditure incurred during the year 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, *1 profit and loss account *2 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...............................and of the *4 profit/loss, its *5 cash flows and changes in equity for the year then ended; and

(d) in our opinion *6 Zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980), was deducted by the company and deposited in the Central Zakat Fund established under section 7 of that Ordinance.

Signature
[Name(s) of Auditors]
Date.............................
Place............................

NOTES

Where applicable--

*1. Substitute "income and expenditure account",

*2. Substitute "sources and application of funds",

*3. Where there is no change in the accounting policy(ies) the portion "except for the changes as stated in note(s)........................with which we concur" may be omitted,

*4. Substitute "surplus or deficit",

*5. Substitute "changes in source and application of funds",

*6. Where no Zakat is deductible, substitute "no Zakat was deductible at source under the Zakat and Ushr Ordinance, 1980".

Where any of the matter referred to in the Auditors’ Report is answered in the negative or with a qualification, the report shall state the reason for such answers alongwith the factual position to the best of the auditors’ information.

In the case of a non-listed company reference to "cash flow statement or source and application of funds and statement of changes in equity and opinion thereon may be omitted",

[No. 1(72) JS (CL)/86.]
HIZBULLAH SIDDIQUI,
Joint Director