AZIZPIPES Corporate Disclosure — 15 May 2014

(continuation of news of AZIZPIPE): In our opinion for steady profit of the company the cost of goods sold ratio to turnover should be reduced as much as possible and also sales price of the product should be re-fixed. 3. Deferred taxation: The company recognised no deferred taxation in accordance with Paragraph 47 of BAS 12. 4. Pre-Production Expense: During the year the company has amortised Tk. 1,000,000 against Pre-Production Expenses. We feel that entire rest of the amount should be written off immediately. 5. Revaluation Reserve: The company has not been charging depreciation on the additional value resulting from revaluation of fixed assets as required by BAS 16. (cont.-3)