RIZWAN & COMPANY Prepared Reviewed Schedule

Chartered Accountants By By

Client Nafeesa Textiles Limited

Year June 30, 2019 Date: Date:
L/S Equity And Liabilities
Objective: To ensure that completeness, existence and accuracy of equity and non- current liabilities is not
materially misstated
Work Done: Verified opening balances with previous year audited accounts.
Closing balance agreed with GL

30-Jun-19 30-Jun-18
Code Particulars Ref
Rupees Rupees

Authorized share capital

100,000,000 (2018: 100,000,000) ordinary 1,000,000,000 1,000,000,000
shares of Rs. 10 each

Issued, subscribed and paid up share capital 861,462,490 861,462,490

Fair value adjustment on sponsor's loan 12,163,205 12,163,205
Accumulated loss (340,657,965) (372,831,998)
Total equity 532,967,730 500,793,697

Non-current liabilities

Long term financing 34,374,245 61,874,245

Long term loan from sponsors 166,961,365 197,423,652
Deferred liability - Gratuity 51,425,480 48,903,872
252,761,090 308,201,769

Total 785,728,820 808,995,466

Conclusion:
1. The audit has been completed in accordance with audit program.
2. The working papers demonstrate that the adequate work has been undertaken.
3. The working papers contain sufficient information, detail of sufficient features
and notes of unusual matters to enable us to form an opinion on financial statement.
4. In my opinion above amounts are fairly stated and on a consistent basis with the previous year.
 RIZWAN & COMPANY Prepared Reviewed Schedule
Chartered Accountants By By

Client Nafeesa Textiles Limited

Year end June 30, 2019 Date: Date:
Subject Authorized share capital

Objective: To ensure that completeness, existence and accuracy of Authorized capital is not materially
misstated.

Work Done:
Verified opening balances with previous year audited accounts.
Closing balance agreed with GL

30-Jun-19 30-Jun-18
Code Particulars Ref
Rupees Rupees

Authorized share capital

100,000,000 (2018: 100,000,000) ordinary
1,000,000,000 1,000,000,000
shares of Rs. 10 each

1,000,000,000 1,000,000,000

Conclusion:
Based on the procedures performed conclusion obtained is satisfactory
 RIZWAN & COMPANY Prepared Reviewed Schedule
Chartered Accountants By By

Client Nafeesa Textiles Limited

Year end June 30, 2019 Date: Date:
Subject Issued, subscribed and paid up capital

Objective: To ensure that completeness, existence and accuracy of issued, subscribed and paid up capital is
not materially misstated.

Work Done:
Verified opening balances with previous year audited accounts.
Closing balance agreed with GL

Number of 30-Jun-19 30-Jun-18

Code Particulars Ref
shares Rupees Rupees

Shares of Rs. 10 each issued for cash

0001 Mr. Qaiser Sarfaraz Waraich 41,681,092 416,810,920 416,810,920

0002 Mrs. Dilnaz Alim Waraich 500 5,000 5,000
0003 Mrs. Yasmeen Kausar 393,500 3,935,000 3,935,000
0004 Mr. Shahid Faraz Hussain 43,934,587 439,345,870 439,345,870
0005 Mr. Mumtaz Hussain 4,285 42,850 42,850
0006 Mr. Shahid Anwar Tata 4,285 42,850 42,850
0007 Mr. Ahsan Shahid Waraich 128,000 1,280,000 1,280,000

86,146,249 861,462,490 861,462,490

Conclusion:
Based on the procedures performed conclusion obtained is satisfactory
 RIZWAN AND COMPANY Prepared Reviewed Schedule:
Chartered Accountants By: By:

Client : Nafeesa Textiles Limited

Year end : June 30, 2019 Date: Date:
Subject : Fair value adjustment on sponsor's loan

Objective: To ensure that completeness, existence and accuracy of loan from sponsor's is not materially
misstated.

Work Done:
Verified opening balances with previous year audited accounts.
Closing balance agreed with GL

30-Jun-19 30-Jun-18
Code Particulars Ref
Amount Amount

Fair value adjustment on sponsor's loan 12,163,205 12,163,205

Closing balance 12,163,205 12,163,205

Conclusion:
Based on the procedures performed conclusion obtained is satisfactory
 RIZWAN AND COMPANY Prepared Reviewed Schedule:
Chartered Accountants By: By:

Client : Nafeesa Textiles Limited

Year end : June 30, 2019 Date: Date:
Subject : Accumulated loss

Objective: To ensure that accumulated losses are not materially misstated

Work Done: Verified opening balances with previous year audited accounts.
Closing balance agreed with GL

30-Jun-19 30-Jun-18
Code Particulars Ref
Amount Amount

Balance as at June 30, 2018 (372,831,998) (385,819,782)

Profit for the year 32,174,033 9,290,187

Other comprehensive (loss) / income - 3,697,597

Balance as at June 30, 2019 (340,657,965) (372,831,998)

Conclusion:
Based on the procedures performed conclusion obtained is satisfactory
 RIZWAN AND COMPANY Prepared Reviewed Schedule:
Chartered Accountants By: By:

Client : Nafeesa Textiles Limited

Year end : June 30, 2019 Date: Date:
Subject : Long term loan

Details :

This represents demand finance facility obtained from National Bank of Pakistan under
rescheduling arrangement of cash finance facility of Rs. 100 million. As per term of rescheduling;
the Company has paid Rupees 17.499 million on July 14, 2018 and remaining Rupees 82.5 million
repayable in 12 quarterly installments of Rupees 6.875 million. The facility is secured against 1st
charge of Rupees 110 million (2018: Rupees 110 million) over fixed assets of the Company (part of
1st charge over fixed assets of Rupees 500 million (2018: Rupees 500 million). The facility carries
mark up at 3 Months KIBOR plus 1.5% (2018: 3 Months KIBOR plus 1.5%) per annum.

30-Jun-19 30-Jun-18
Code Particulars Ref
Amount Amount

Long term loan

Demand finance from NBP 34,374,245 61,874,245

34,374,245 61,874,245

Conclusion:
Based on the procedures performed conclusion obtained is satisfactory
 RIZWAN AND COMPANY Prepared Reviewed Schedule:
Chartered Accountants By: By:

Client : Nafeesa Textiles Limited

Year end : June 30, 2019 Date: Date:
Subject : NBP-Demand finance

Objective: To ensure that CEA of long term loan is not materially misstated.
Work Done:
Closing balance of demand finance traced from bank confirmations
Payments made during the year were verified from bank statements and recalculation performed to ensure
accuracy of payments made as per agreement.

30-Jun-19
Code Particulars Ref
Amount

05-01-01-0002 Demand Finance NBP (A/C # 8142337328 )

Opening balance 61,874,245

Add: Loan received during the period

Verified from
Date (BRV) Vr. No. bank Amount
statement

- -

Less: loan repaid during the period

Verified from
Date (BPV) Vr. No. bank Amount
statement
11-Jul-18 01-BPV-2019-7-64 √ 6,875,000
17-Oct-18 01-BPV-2019-10-114 √ 6,875,000
12-Jan-19 01-BPV-2019-1-81 √ 6,875,000
12-Apr-19 01-BPV-2019-4-89 √ 6,875,000

27,500,000 (27,500,000)

Closing Balance 34,374,245

 30-Jun-19
Code Particulars Ref
Amount

Conclusion:
Based on the procedures performed conclusion obtained is satisfactory
 RIZWAN AND COMPANY Prepared Reviewed Schedule:
Chartered Accountants By: By:

Client : Nafeesa Textiles Limited

Year end : June 30, 2019 Date: Date:
Subject : Long term loan Movement

Objective: To ensure that long term loan is not materially misstated

Work Done:
Verified all transactions through bank statements of relevant banks through which such
transactions were made via vouching

30-Jun-19
Code Particulars Ref
Amount

Movement of long term financing is as under:

Balance at beginning of year 61,874,245

Add : Availed during the year -

61,874,245

Less : Repayment during the year (27,500,000)

Balance at the end of year 34,374,245

Closing Balance
Conclusion:
Based on the procedures performed conclusion obtained is satisfactory
 RIZWAN AND COMPANY Prepared Reviewed Schedule:
Chartered Accountants By: By:

Client : Nafeesa Textiles Limited

Year end : June 30, 2019 Date: Date:
Subject : Long term loan from sponsors

Objective: To ensure that long term loan from sponsors are not materially misstated

Work Done: Verified opening balances with previous year audited accounts.
Closing balance agreed with GL

30-Jun-19 30-Jun-18
Code Particulars Ref
Amount Amount

Long term loan from sponsors

Loan from related party 210,760,000 210,760,000

Less: Present value adjustments (8,671,968) (13,336,348)

202,088,032 197,423,652

Less: Current portion (35,126,667) -

166,961,365 197,423,652
Conclusion:
Based on the procedures performed conclusion obtained is satisfactory
 RIZWAN AND COMPANY Prepared Reviewed Schedule:
Chartered Accountants By: By:
Client : Nafeesa Textiles Limited
Year end : June 30, 2019 Date: Date:
Subject : Long term loan from sponsors

Objective: To ensure that long term loan from sponsors are not materially misstated

Work Done: Verified opening balances with previous year audited accounts.
Closing balance agreed with GL

Total Amount 210,760,000

Discount rate 3.34844%

Un-discounted cash Discounted cash

Sr.# Payment Month PV Factor (Quarterly) Interest
flows flows
1 1-Nov-17 - 1.0000 - -

2 1-Nov-18 - 0.9676 - -

3 1-Nov-19 35,126,667 0.9533 33,486,285 1,640,381

4 1-Nov-20 35,126,667 0.9392 32,991,414 2,135,253

5 1-Nov-21 35,126,667 0.9253 32,503,856 2,622,811

6 1-Nov-22 35,126,667 0.9117 32,023,504 3,103,163

7 1-Nov-23 35,126,667 0.8982 31,550,250 3,576,417

8 1-Nov-24 35,126,667 0.8849 31,083,990 4,042,677

210,760,000 193,639,299 17,120,701

Conclusion:
Based on the procedures performed conclusion obtained is satisfactory
 RIZWAN AND COMPANY Prepared Reviewed Schedule:
Chartered Accountants By: By:
Client : Nafeesa Textiles Limited
Year end : June 30, 2019 Date: Date:
Subject : Long term loan from sponsors

Objective: To ensure that long term loan from sponsors are not materially misstated

Work Done: Verified opening balances with previous year audited accounts.
Closing balance agreed with GL
6/30/2018
No. of days calculation (241)

Payment Un-discounted Days in Difference Interest on

Sr. No. YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 Total
Month cash flows payment of days loan

- - - - - - - - - - - - - - - - - - - - - - Amount In Rupees - - - - - - - - - - - - - - - - - - - - - -

0 1-Nov-17 - - - - - - - - - - - -

1 30-Jun-18 - - - - - - - - - - - -

2 30-Jun-19 35,126,667 365 241 1,640,381 1,083,101 557,280 - - - - - 1,640,381

3 30-Jun-20 35,126,667 730 241 2,135,253 704,926 1,067,626 362,700 - - - - 2,135,253

4 30-Jun-21 35,126,667 1,096 241 2,622,811 576,731 873,472 873,472 299,134 - - - 2,622,811

5 30-Jun-22 35,126,667 1,461 241 3,103,163 511,884 775,260 775,260 775,260 265,500 - - 3,103,163

6 30-Jun-23 35,126,667 1,826 241 3,576,417 472,024 714,892 714,892 714,892 714,892 244,826 - 3,576,417

7 30-Jun-24 35,126,667 2,191 241 4,042,677 444,676 673,472 673,472 673,472 673,472 673,472 230,641 4,042,677

17,120,701 3,793,342 4,662,002 3,399,796 2,462,758 1,653,863 918,298 230,641 17,120,701

Conclusion:
Based on the procedures performed conclusion obtained is satisfactory
 RIZWAN AND COMPANY Prepared Reviewed Schedule:
Chartered Accountants By: By:

Client : Nafeesa Textiles Limited

Year end : June 30, 2019 Date: Date:
Subject : Confirmation control summary - Loan from sponsors

Work Done:
Traced from last year's audit file
Circularized sponsors confirmations to verify year end balances
Checked arithmetic accuracy and investigated large or unusual items
Balance agreed with GL

Confirmation Balance as per

Code Particulars Received Ref Ref Difference
Send on Confirmation Accounts
on

202020002 Hafiz Avais Ghani 5-Sep-19 15-Sep-19 4,514,335 4,514,335 -

202020003 Shoaib Ghani 5-Sep-19 15-Sep-19 41,351,847 41,351,847 -

Total 45,866,182 -

Conclusion:
Based on the procedure performed, conclusion obtained is satisfatory.
 RIZWAN & COMPANY Prepared Reviewed Schedule
Chartered Accountants By By

Client Nafeesa Textiles Limited

Year end June 30, 2019 Date: Date:
Subject Staff retirement benefit - gratuity

Objective: To ensure that completeness, existence and accuracy of staff retirement benefit is not
materially misstated.

Work Done: Obtain or prepare a lead schedule of provision for gratuity.

· Check arithmetical accuracy of the schedule
· Trace last year’s balance with last year’s working paper

1 During the year; the Company recognised employees retirement benefits on the basis of
actuarial valuation using Projected Unit Credit Method in accordance with International
Accounting
We ensuredStandard 19, (Retirement
that this adoption benefits)
of accounting policy has been applied retrospectively in
2 accordance with provisions of International Accounting Standard 8 (Accounting Policies,
Changes in Accounting Estimates and Errors).
3 For impact on prior period of retrospective application, we ensured that same has been
recorded appropriately and balances carried forward to current year are accurate.
4 We obtained actuarial valuation report and source data of employees sent to the valuer by
management
We ensured thatof the
theCompany and ensured
valuer is competent its field
in its completeness and
of work and accuracy.
has a vast experience of
5 gratuity valuation and the assumptions used by him are reasonable and a best estimate as per
the market trend
Study company rules and regulations relating to gratuity benefit and compliance of applicable
6 laws.
Obtain a list of employees with date of joining to ensure that on those with stipulated number of
7 years’ service are considered
8 Check gross salary from underlying record.
9 Compute the gratuity due on the basis of number of years worked.
Reconcile gratuity payable at beginning of year, gratuity provision for year, gratuity paid to
10 employees who have left during the year and balance at end of year.
11 Check journal entry for the provision.
Determine that gratuity expense and provision for has been correctly presented and disclosed
12 in the further statements.
13 Opening balances were restated according to IAS -8
14 Closing balance agreed with GL

30-Jun-19 30-Jun-18
Code Particulars Ref
Rupees Rupees

Staff retirement benefit - gratuity 51,425,480 48,903,872

51,425,480 48,903,872

Conclusion:
Based on the procedures performed conclusion obtained is satisfactory
 RIZWAN & COMPANY Prepared Reviewed Schedule
Chartered Accountants By By

Client Nafeesa Textiles Limited

Year end June 30, 2019 Date: Date:
Subject Staff retirement benefit - gratuity

Objective: To ensure that completeness, existence and accuracy of staff retirement benefit is not materially
misstated.

Work Done:Analysized and verified the acturial valuation report from an independent valuer to account for the
related transactions during the year.
Closing balance agreed with GL

30-Jun-19 30-Jun-18
Code Particulars Ref
Rupees Rupees

Movement in the net liability in the balance sheet

Opening liability 48,903,872 44,420,615

Re-measurement loss/(gain) recognized in OCI (5,522,698) (5,207,883)

Expense for the year 21,755,664 20,025,725

65,136,838 59,238,457

Benefits paid during the year (13,567,258) (10,334,585)

Closing liability 51,569,580 48,903,872

Conclusion:
Based on the procedures performed conclusion obtained is satisfactory
 RIZWAN & COMPANY
Chartered Accountants

Client : #REF! Verified amount 31,427,786

Year End : June 30, 2018
Subject : Loan from sponsors - Awais Ghani

Month / Date
Vr # Vr Type Description Amount 1 2 3 4 5 6 7 8 9
of Vr

Balance transferred from loan from directors ( Short term ) to

30-Jun-18 111 JV 31,247,786 ü ü ü ü N ü ü ü ü
Sponsors loan

Balance transferred from loan from directors ( Short term ) to

30-Jun-18 112 JV 180,000 ü ü ü ü N ü ü ü ü
Sponsors loan

1 Actual invoice(s) are attached 2 Approval from the authorised person 3 Traced in ledger
4 Supporting document(s) are attached 5 Tax deducted (where applicable) 6 Amounts relates to the period under review
7 Amount posted in correct account 8 Amounts posted with correct amount 9 Traced from bank statement

χ No ü Yes N N/A
 RIZWAN & COMPANY
Chartered Accountants

Client : #REF! Verified amount 2,716,000

Year End : June 30, 2018
Subject : Loan from sponsors - Shoaib Ghani

Month / Date
Vr # Vr Type Description Amount 1 2 3 4 5 6 7 8 9
of Vr

Advance amount received from Shoaib Shb as a loan against cheque #

12-Sep-18 166 BR 200,000 ü ü ü ü N ü ü ü ü
26087514

10-Oct-18 92 JV Loan received from Shoaib Shb 2,516,000 ü ü ü ü N ü ü ü ü

1 Actual invoice(s) are attached 2 Approval from the authorised person 3 Traced in ledger
4 Supporting document(s) are attached 5 Tax deducted (where applicable) 6 Amounts relates to the period under review
7 Amount posted in correct account 8 Amounts posted with correct amount 9 Traced from bank statement
χ No ü Yes N N/A
 RIZWAN & COMPANY
Chartered Accountants

Client : #REF! Verified amount -

Year End : June 30, 2018
Subject : Loan from sponsors - Shoaib Ghani

Month / Date
Vr # Vr Type Description Amount 1 2 3 4 5 6 7 8 9
of Vr

1 Actual invoice(s) are attached 2 Approval from the authorised person 3 Traced in ledger
4 Supporting document(s) are attached 5 Tax deducted (where applicable) 6 Amounts relates to the period under review
7 Amount posted in correct account 8 Amounts posted with correct amount 9 Traced from bank statement
χ No ü Yes N N/A
 RIZWAN AND COMPANY Prepared Reviewed Schedule:
Chartered Accountants By: By:

Client : Ghani Gases Limited

#REF! : June 30, 2017
Subject : Long Term Security Deposit - Movement

OPENING DURING THE YEAR CLOSING

CODE PARTICULARS
BALANCE DEBIT CREDIT BALANCE

2115010001 Pak Orient Gases Lhr 2,000,000 - - 2,000,000

2115010002 Ali Akbar Traders Lhr 1,000,000 - - 1,000,000
2115010003 Al Farooq Gas Traders Gujranwala 1,000,000 - - 1,000,000
2115010004 United Gas Co (Pvt) Ltd Lhr 1,100,000 - - 1,100,000
2115010006 Crescent Traders - Rawalpindi 1,000,000 - - 1,000,000
2115010015 Usman Ship Brakers Karachi 700,000 - - 700,000
2115010016 Ghaffar & Co. - Karachi 500,000 - - 500,000
2115010018 Super Fine Gas - Hyderabad 1,500,000 1,500,000 - -
2115010024 A A Ship Breakers 500,000 - - 500,000
2115010025 Jaffrani Brothers Steel 1,000,000 - - 1,000,000
2115010028 Khan Mechanics Taxila 1,000,000 - - 1,000,000
2115010029 Rehman Steel Khi 400,000 - - 400,000
2115010031 Jamaluddin & Co 650,000 650,000 - -
2115010032 Decent Trading Company 1,000,000 - - 1,000,000
2115010034 H.S.J Steel Industries 1,000,000 - - 1,000,000
2115010035 Khan Brothers Multan 1,000,000 - - 1,000,000
2115010036 Ayan Ship Breakers Khi 600,000 - - 600,000
2115010037 Mardan Medical And Ind Gases Sd 1,000,000 - - 1,000,000
2115010041 Hammad Gas Gurjat Security 1,500,000 - - 1,500,000
2115010042 Hafiz Trading Company Gujranwala 1,000,000 - - 1,000,000
2115010043 Al Wahdat Gases Gujranwala - - 500,000 500,000
2115010044 Mac And Company Gilgit (Security) - - 2,000,000 2,000,000

19,450,000 2,150,000 2,500,000 19,800,000