A report on the audit for

Completed ByWaqar AhmedSchedule

Date29-Sep-2015

Reviewed By

Date

Client NamePakistan Industrial Development Corporation

AssignmentAnnual Audit

Audit UnitInvestments

System Note:

Concerned staff:Zahid Ur Rehman MughalDesignation

:General Manager Finance & Accounts.Extension

:339BDO Staff met with Mr Zahid Ur Rehman Mughal to gain understanding of Investments of Pakistan Industrial Development Corporation.

Decision of further investment / disposal of investment property is at the discretion of Board of the PIDC.

Only policy exist for investment is relating to investment in Banks / Investment Companies (Investment in Term Deposit Certificate, Certificate of Investments, Defence Saving Certificates)

Issue letter to Bank 10 to 15 days prior the maturity of existing investment with Bank for forth coming offered rates and roll over of investment (roll over only in case when the rate offered by the Bank is competitive with the rate offered in market otherwise the maturing investment is withdrawn from existing Bank and invested in the Bank offered higher rate) .

As per PIDC policy investment in each bank is limited to a maximum range (for A rating bank maximum investment limit is 300 million and for AA & A+ rating banks is limited to maximum of 400 million).

Investment in subsidiaries and associates (which are mostly Government entities) are done upon instructions from Ministry of Development through proper approval of DWP (Department Working Party includes personals from Ministry of Development and Ministry of Planning) board then the funds are allocated for projects and budgets are forecasted / prepared for investment in upcoming projects. A member firm of BDO INTERNATIONAL