AZIZPIPES Corporate Disclosure — 15 May 2014

(Audit Observation): The auditor of the company has given the following audit observation paragraph in the audit report of the company for the year ended on 31 December 2013: Audit observations: 1. Utilization of production capacity and ability of the company to pay debt: The production capacity position of the company is very poor which was decreased than the last year by 9.44%. Total utilization of attainable capacity of the company is only 38.59%, which was 48.03% at previous year. The management of the company opined that the shortfall was made due to reduce demand emanated from general economic downturn, shortage of working capital and no-availability of banking support due to sub-judice matter. (cont.-1)