4. Introduction: Sui Northern Gas Pipelines Limited (SNGPL), is the largest integrated gas company serving more than 2.5 million consumers in North Central Pakistan through an extensive network in Punjab and NWFP. The Company has over 42 years of experience in operation and maintenance of high-pressure gas transmission and distribution systems. SNGPL was incorporated as a private limited Company in 1963 and converted into a public limited company in January 1964 under the Companies Act 1913, now Companies Ordinance 1984, and is listed on all the three Stock Exchanges of the Country.
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12. Audit Programme For The Year 2004-2005 – Multan Region Sr. # Department/Section Period to be Covered- 2004-05 Audit schedule Report From To Draft Final 1 Accounts Jan. to June 04 01.10.04 10.11.04 25.11.04 26.12.04 2 Admin 3 Purchase & Stores 26.11.04 15.12.04 31.12.04 31.01.05 4 Sales 5 Building July to Dec. 04 01.01.05 05.02.05 20.02.05 20.03.05 6 Metering 7 Distribution Dev. 21.02.05 05.03.05 20.03.05 20.04.05 8 Accounts 21.03.05 20.04.05 05.05.05 05.06.05 9 Admin 10 Purchase & Store 06.05.05 25.05.05 10.06.05 10.07.05 11 Sales 12 Building Jan. to June 05 11.06.05 15.08.05 31.08.05 30.09.05 13 Metering 14 Distribution Dev.
35. 2)Imprest Cash Book: i) Check lodgments from pay –in-slips and bank advices. ii) Check payment vouchers , duly approved , with relevant supports and expenses head charged and period to which the expenditure is related as per procedure. iii) Check that previous cash book has been sent to HO for reconciliation. iv) Check that cash/cheques received are deposited for reimbursement. v) Check bank reconciliation statements for the period.
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38. TA / HA Exp. Control Register: i) Check entries in TA /HA from the TA/HA bills are properly made. ii) Check journey tickets arranged by company are fully shown reference of payment etc. i) Checks the bills paid to the suppliers are routed through register. ii) Check reference of payment i.e. purchase order and receiving statement. Bills Payment Control Register:
60. External audit repot of Sui Northern Gas Pipeline Limited We have audited the annexed balance sheet of Sui Northern Gas Pipelines Limited as at Jun 30,2004 and the related profit and loss account, 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 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.
61. 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 :
62. 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 books of accounts and are further in accordance with accounting policies consistently applied during the year ; 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 give to us, the balance sheet, profit and loss account, cash flow
63. Without qualifying our opinion, we draw attention to Note 2 . 18 to the financial statements which explains the provisions of an agreement with World bank for a loan, under which the company is required to earn minimum annual return before taxation, interest and other changes on debit of 17 . 5% per annum of the net average operating fixed assets for the year, excluding interest, dividends and other non-operating income . During the year ended Jun30, 2004, the company’s return before taxation, interest and other changes on debts was less than minimum required return . November 25, 2004 RIAZ AHMED&CO. Lahore Chartered Accountants
