Page 101 - Interloop Annual Report 2018-2019

INDEPENDENT AUDITOR’S INDEPENDENT AUDITOR’S

REPORT TO THE MEMBERS OF REPORT TO THE MEMBERS OF

INTERLOOP LIMITED INTERLOOP LIMITED

REPORT ON THE AUDIT OF UNCONSOLIDATED REPORT ON THE AUDIT OF UNCONSOLIDATED

FINANCIAL STATEMENTS FINANCIAL STATEMENTS

Information Other than the Unconsolidated Financial • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
Statements and Auditor’s Report Thereon • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant
doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are
Management is responsible for the other information. The other information comprises the (information included in the Director’s required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures
report, but does not include the unconsolidated financial statements and auditor’s report thereon).
are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.
• Evaluate the overall presentation, structure and content of the unconsolidated financial statements, including the
disclosures, and whether the unconsolidated financial statements represent the underlying transactions and events in a
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the manner that achieves fair presentation.
audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a
material misstatement of this information; we are required to report that fact. We have nothing to report in this regard. We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Responsibilities of Management and the Board of Directors We also provide to the Board of Directors with a statement that we have complied with relevant ethical requirements regarding

for the Unconsolidated Financial Statements independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on
our independence, and where applicable, related safeguards.
Management is responsible for the preparation and fair presentation of the unconsolidated financial statements in accordance From the matters communicated with the Board of Directors, we determine those matters that were of most significance in
with accounting and reporting standards as applicable in Pakistan, the requirements of the Companies Act, 2017 (XIX of 2017) the audit of the unconsolidated financial statements of the current period and are therefore the key audit matters. We describe
and for such internal control as management determines is necessary to enable the preparation of unconsolidated financial these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely
statements that are free from material misstatement, whether due to fraud or error. rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences
of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Report on Other Legal and Regulatory Requirements:

The Board of directors is responsible for overseeing the company’s financial reporting process. Based on our audit, we further report that in our opinion:

Auditors’ Responsibilities for the Audit of the Unconsolidated a) proper books of account have been kept by the Company as required by the Companies Act, 2017 (XIX of 2017);

b) the unconsolidated statement of financial position, the unconsolidated statement of profit or loss, the unconsolidated
Financial Statements statement of comprehensive income, the unconsolidated statement of changes in equity and the unconsolidated
statement of cash flows together with the notes thereon have been drawn up in conformity with the Companies Act, 2017
Our objectives are to obtain reasonable assurance about whether the unconsolidated financial statements as a whole are (XIX of 2017) and are in agreement with the books of account and returns;
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs c) investments made, expenditure incurred and guarantees extended during the year were in accordance with for the
as applicable in Pakistan will always detect a material misstatement when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic purpose of the Company’s business; and
decisions of users taken on the basis of these financial statements.
d) 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.
As part of an audit in accordance with ISAs as applicable in Pakistan, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
The engagement partner on the audit resulting in this independent auditor’s report is Khan Muhammad - FCA.
The engagement partner on the audit resulting in this independent auditor’s report is Khan Muhammad - FCA.
• Identify and assess the risks of material misstatement of the 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. The risk of not detecting a material misstatement resulting from fraud is higher than for one 2018 - 19
Interloop Limited • internal control. Date: September 23, 2019 Kreston Hyder Bhimji & Co. Annual Report
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
Kreston Hyder Bhimji & Co.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in
Chartered Accountants
Place: Faisalabad
98 the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. 99