Audit Confirms Compliance of International Packaging Films Limited with IPO Proceeds Utilization

Karachi: The external auditors, AF Ferguson and Co., have confirmed that International Packaging Films Limited has fully complied with the regulations concerning the utilization of proceeds from its Initial Public Offering (IPO). The confirmation comes as part of the annual and final progress report required under regulations 16(ii) and (iia) of Chapter VIII of the Public Offering Regulations, 2017.

According to information available from the Pakistan Stock Exchange (PSX), the report detailed that the company had successfully used the entirety of its IPO proceeds amounting to PKR 1.76 billion for the early repayment of its long-term Islamic financing (Diminishing Musharaka) with Bank Al Habib Limited. The process was completed with the last payment on June 28, 2024, thus concluding the financial obligations that started with the IPO release on June 5, 2024.

Specifically, the breakdown of the utilized funds shows PKR 1.747 billion was directed towards the principal and an additional PKR 14.39 million covered the accrued profit on the financing. The auditors’ agreed-upon procedures report indicates that all transactions align with the purposes outlined in the IPO prospectus and the regulatory framework.

The audit engagement adhered to the International Standard on Related Services (ISRS) 4400 (Revised), focusing solely on the factual findings without providing any opinion or assurance conclusion. The ethical standards and quality management protocols followed by AF Ferguson and Co. were in accordance with the revised 2019 Code of Ethics for Chartered Accountants and the International Standard on Quality Management (ISQM) 1.

The findings from the procedures, which included verifying bank statements and details of the repayments, showed no discrepancies, affirming that the IPO funds were appropriately allocated and utilized as per the agreed terms.