HLBITC/NHA/AUDIT/002

November 2, 2010
Director Finance,
National Highway Authority
Islamabad.

AUDIT FOR THE YEAR ENDED JUNE 30, 2010

Dear Sir,

With reference to the above captioned subject, please provide us the following information at your earliest so that
we will be completed in due course of time;

Financial Records
Draft Financial Statements (consolidated and separate) of head office and of each unit. Draft financial
statements at a minimum shall include
o Balance Sheet as at June 30, 2010
o Profit and Loss Account for the year ended June 30, 2010
o Cash flow Statements for the year ended June 30, 2010
o Statement of Changes in Equity for the year ended June 30, 2010
o Notes to the account for the year ended June 30, 2010
Running Trial balance (consolidated and separate) of head office and units.
Ledgers, subsidiary records and vouchers along with supporting documents maintained and prepared
during the year at head office and projects.

Balance Sheet
o Schedule of Fixed Assets showing
Cost and accumulated depreciation at beginning and at end of the year.
Depreciation charged during the year.
Acquisitions made during the year.
Disposals stating cost, accumulated depreciation, sales proceeds, profit/(loss) on
disposal, mode of disposal and particulars of buyers
Estimated residual value of the fixed assets as at June 30, 2010.
o Details of assets subject to finance leases.
o Details of assets held in capital work in progress.
o If revaluation of assets has taken place during the year then the name of valuer, qualification and
basis of valuation and copy of valuers certificate/ reports.
o Break up of advances against capital work in progress.
o Break up of long term loans and advances with mark up schedule.
o Bank statement of all the bank accounts operated by the company, along with the Bank
Reconciliation Statements. Details of bank accounts opened/closed during the period along with
board approval. And Subsequent Bank Statements.
o Certificate of cash in hand.
o Specimen signature of all authorized signatures.
o Schedule of advances, prepayments and other receivables
o Details of advance tax paid during the year.
o Schedule of short term investment.
o Schedule of Short term investment and its classification into
Investments through profit or loss.
Held to maturity and
Available for sale
o Calculation of deferred tax assets/ liability (if any).
o Income tax return for the year 2009.
o Schedule for long term loans payable along with mark up.
o Party wise detail of the retention money and deposits.
o Party wise movement schedule of payable to contractors, consultants and suppliers.
o List of contractor and creditors at the end of the year along with activities during the year.
o Schedule of short term finances along with mark up details, Short term deposits.
o Calculation of accrued mark up on short term financing and short term deposits.
o Details of Liability against asset subject to finance lease.
o Actuarial valuation report in respect of deferred liabilities - staff retirement benefits/
compensated absences.
o Calculation of surplus/(deficit) on revaluation of investments.
o Schedule of issued, subscribed and paid up capital with reconciliation of no. of shares.
o Description of any post balance sheet event which require either adjustment/ disclosure in the
financial statements.
o Details of contingencies and commitments.
o List of legal advisors and tax consultants along with their addresses.
o Details of litigations and claims.





Profit and Loss Account

o Detail schedule of the Government grants and its disposals.
o Detail schedule of Toll income/ Police fine/ income form weigh station/ rental income sale of
tender documents/ prequalification, NOC & renewal fee.
o Project wise details of other operating expenses showing the nature of expenses under this head.
o Bad debts write off during the period.
o Party wise detail of provision for bad debts.
o Calculation of accrued mark up on investments if any.
o Calculation of financial expenses incurred during the period

Cash flow Statements

o Working of cash flow statement.

Disclosures

o Working of financial assets & financial liabilities.
o Names related parties of the Company, nature of relationship, extent of shareholding with each
other, pricing policies & transactions during the year etc.
o Listing & number of employees, also list of employees who have joined and left during the year
together with their basic pays.
Miscellaneous

o Movement schedule of tangible and Capital work-in-progress both for cost and accumulated
depreciation.
o Party-wise movement schedule of long term loans and advances.
o Age-analysis of long-term loans and advances.
o Party-wise movement schedule of Trade debts
o Party-wise movement schedule of advances, deposits, prepayments & other receivables
o Age-analysis of advances, deposits, prepayments & other receivables
o Schedules of all deferred liabilities showing beginning and ending balances, provision payments
during the year.
o Budget variance report.
o Party wise detail of rental income
Corporate & other regulatory Records

Minutes of meeting of members and directors held during the year.
Details regarding establishment of audit committee & minutes of its meetings.
Correspondence files with all projects.
Correspondence files with the Government of Pakistan, with all kinds of returns filed during the year.
Taxation related correspondence files & assessment / appellate orders from the date of incorporation of the
Company & latest income tax return.
Listing of directors as at the year-end & changes during the year, and their directorship in other
companies, distinction of executive, non-executive directors & those representing institutional equity
interest, shareholding of directors & details about changes during the year.
Employees pension fund, provident fund, gratuity fund & other benefit plans rules & regulations, their
recognition certificates by tax department (if applicable) & other offices
The Mission and Vision statement of the company.
In case of further issue of capital the resolution authorizing the fresh issue of capital.
Details about the key management personnel, their qualifications, designations, responsibilities,
employment period etc.
Copy of Insurance policy of office vehicles.
Payroll files maintained.


Manuals & Reports

Internal audit function, reporting structure & the internal audit reports for the year under audit.
Internal control manual, accounting manual, operating procedures manual, credit manual, and other
standard operating procedures (SOP), if any.
Signature specimens of authorized signatories.
Miscellaneous records

Certificate about number of projects & details at the year-end.
Copies of any compromises or other arrangements with any financiers / customers to date
In order to comply with ISA 720 all the information provided in the financial statements should be read by
the auditor prior to its publication. Kindly, provide us all the information that will be included in annual
report.

The aforesaid required information is not final; we may require further information and record for completion of
audit.

We shall be glad to receive the above information/records/documents at earliest. It will enable us to complete the
audit effectively and efficiently.


Thanking you,

Yours truly,



HLB IJAZ TABUSSUM & CO.,
Chartered Accountants.