Audit & Assurance
Statutory and consolidated audit engagements for poultry groups and feed mills.
/ 04 — Industry focus
Poultry & agriculture.
Specialised audit, taxation, operational and financial advisory for poultry farms, feed mills, hatcheries and vertically integrated poultry businesses — built on deep sector experience in Pakistan.
/ 02 — Overview
Optimising operations & controls.
The poultry sector requires strong operational oversight, inventory controls, biological asset management and efficient financial systems. With significant experience in Pakistan's poultry and feed sector, our professionals understand the operational and financial complexities unique to the industry.
We support poultry businesses by strengthening controls, improving reporting structures, optimising processes and assisting management in strategic decision-making.
How we support poultry businesses
Our team assists operators in enhancing operational efficiency, improving financial management systems, strengthening internal controls and maintaining regulatory compliance — across every stage of the poultry value chain.
/ 03 — Capabilities
Our services for poultry.
Comprehensive solutions
Internal Audit
Risk-based internal audit across farms, hatcheries, mills and dispatch.
Costing & Operational Reviews
Feed conversion, mortality, energy and overhead cost reviews across the chain.
Tax Advisory
Direct and indirect tax advisory, including agricultural income treatment.
Biological Asset Reviews
IAS 41 / IFRS aligned recognition, valuation and disclosure of live assets.
ERP & Process Advisory
Selection, implementation and post-go-live optimisation of poultry ERPs.
Financial Reporting
MIS, management accounts and IFRS-aligned reporting for integrated operations.
Feasibility & Expansion
Feasibility studies and capex appraisal for new farms, mills and hatcheries.
Risk Management
Enterprise risk reviews including biosecurity, market and concentration risk.
Compliance Services
SECP, FBR and provincial regulatory filings and ongoing compliance support.
/ 04 — Regulatory framework
Poultry audit in Pakistan, in practice.
Audit and advisory for Pakistani poultry businesses covers IAS 41 biological-asset measurement, IFRS 15 revenue across breeding, broiler and processed segments, the agricultural income tax exemption under section 41 of the Income Tax Ordinance 2001, livestock-specific sales tax classifications, and feed-mill operational controls — calibrated for vertically integrated operations from feed mill through farm to processing.
FederalMinistry of National Food Security & Research; Animal Quarantine Department for import/export; SECP under the Companies Act 2017 for corporates; FBR for the section 41 agricultural exemption boundary and sales tax on processed products under the Sales Tax Act 1990.
ProvincialProvincial Livestock and Dairy Development Departments for licensing, biosecurity and disease control; provincial agricultural income tax under provincial laws; provincial revenue authorities for sales tax on services consumed (transport, feed milling services).
Reporting standardsIAS 41 (live birds at fair value less costs to sell), IAS 2 (feed and harvested produce), IFRS 15 (multi-segment revenue), IFRS 9 (trade receivables with ECL), IAS 16 (poultry sheds, equipment and processing plant).
Common audit findings
Where poultry operators trip.
- 01Mis-classification of business income as agricultural under section 41 boundaries.
- 02Biological-asset fair-value gaps without documented valuation methodology under IAS 41.
- 03Feed conversion ratio variances not reconciled between operations and finance.
- 04Bird mortality reporting controls weak — gap between farm logs and financial write-offs.
/ 05 — Frequently asked
Questions we hear from poultry operators.
/ 01
Is poultry farming income tax-exempt in Pakistan?
Agricultural income is exempt from federal income tax under section 41 of the Income Tax Ordinance 2001, but the exemption is narrowly defined. Income from poultry breeding, broiler production and egg production from owned land may qualify; processing, slaughtering and value-added activities, contract farming arrangements and corporate feed-mill income generally do not, and are taxable as business income. Provincial agricultural income tax applies separately under provincial laws.
/ 02
How are live birds accounted for under IFRS?
Live birds — broiler flocks, layers and breeders — are biological assets under IAS 41, measured at fair value less costs to sell, with changes recognised in profit or loss. Eggs after harvest are agricultural produce, measured at fair value less costs to sell at the point of harvest and then transferred to IAS 2 inventory. Feed and consumables are inventory under IAS 2 at the lower of cost and NRV.
/ 03
What sales tax applies to poultry products?
Live poultry and unprocessed eggs are generally zero-rated or exempt under the Sales Tax Act 1990, while processed poultry products, formula feed and pharmaceutical inputs are taxable under specific SROs and the Sixth Schedule. Treatment of intermediate products and by-products requires careful sales tax classification, and input-tax adjustment is restricted under section 8 for blocked categories.
/ 04
Which regulators apply to poultry operations in Pakistan?
Federal oversight includes the Ministry of National Food Security & Research, the Animal Quarantine Department for import/export, and the Pakistan Poultry Association for industry coordination. Provincial Livestock and Dairy Development Departments handle licensing, biosecurity inspections and disease control. SECP regulates incorporated poultry companies and FBR administers federal tax positions.
/ 05
What internal controls do auditors expect in poultry operations?
Auditors expect documented controls over flock placement, feed conversion ratio (FCR) tracking, mortality reporting and bird-weight verification at processing; reconciliation between feed-mill output and farm consumption; biosecurity protocols with audit trails; and integrated reporting that ties operational KPIs to the financial accounting records under IAS 41 fair-value measurement.