You are aware that textile industry is financially crippled due to higher costs of input. Excessive increase in gas rates have become unbearable. Loadshedding is another headache. The power looms sector is badly affected in Faisalabad resulting in spinning sector crisis.
Commercial banks have frozen cash finance limit and have either reduced or are not renewing cash finance limit for procurement of raw material. Some textile mills have closed down whereas others are heading towards closure. The textile industry is virtually sick. The economic condition of the country is also not good. Government is making all efforts to seek foreign help, including extension of credit for procurement of oil.
In view of these circumstances chartered accountants firms be asked not to demand audit fee based on turnover. It is requested that minimum audit fee provided in certain circumstances at serial 5 for listed companies should be charged Rs 75,000 for annual audit, half yearly review inclusive of out of pocket expenses.
Lastly small firms of chartered accountants should be allowed to conduct audit at a fee to be settled mutually irrespective of fee paid to the previous auditors.