Finance Systems:

This formal control mechanism accounts for money within the company. Companies are
generally bound by the SEC, IRS, and FASTB regulations; nevertheless, there are many ways in
which money is handled and accounted for within an organization.

At Lucky Cement Limited, the management is fully aware of its responsibility towards the
preparation and presentation of financial statements. International Financial Reporting Standards
(IFRS), as applicable in Pakistan, have been followed in the preparation of financial statements
and any departures therefrom have been adequately disclosed and explained. Moreover, the
management closely monitors the Company’s liquidity and cash flow position. This includes
monitoring of balance sheet liquidity ratios, debtors and creditors concentration both in terms of
the overall funding mix and avoidance of undue reliance on large individual customers.

The audit conducted in the organization is in accordance with International Standards on

Auditing (ISAs) as applicable in Pakistan. The company exercise professional judgment and
maintain professional skepticism throughout the audit. It identifies and assesses the risks of
material misstatement of the consolidated financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion.