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021211
SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN, ISLAMABAD
Circular No. 16
Reference No. EMD/D-II/31/2002
December 11, 2002
Submission of Quarterly Accounts by Listed Companies
Consequent upon the promulgation of the
Companies (Amendment) Ordinance, 2002, certain clarifications are being sought
by certain quarters from the Commission relating to amendment made in Section
245 of the Companies Ordinance, 1984 (the ‘Ordinance’) in the context of
quarterly accounts. The queries have been considered and are clarified as under:
(i) The listed companies are now required to ensure that
cumulative figures for the half year, presented in the 2nd
Quarter accounts are subject to limited scope review by the
statutory auditors. This is consistent with sub-regulation
(xxi) of Regulation 37 of the KSE Listing Regulations. Such a
review is not required for the 1st and 3rd
Quarter accounts.
(ii) The listed companies finding it difficult to circulate
quarterly accounts to their shareholders may, in lieu thereof,
publish quarterly accounts in two leading morning newspapers,
one in English and the other in Urdu language, having
circulation in the Province in which stock exchange on which
the company is listed, is situate. Such publication of
quarterly accounts would be considered sufficient compliance
with law as regards transmission of quarterly accounts to the
shareholders. Notwithstanding this option, the listed
companies must file the quarterly accounts with the
Commission, the Registrar and transmit the same to the
concerned stock exchanges as required under Section 245 of the
Ordinance as amended through the Companies (Amendment)
Ordinance, 2002. Further, they will also provide a copy of
quarterly reports free of cost to shareholders on demand, if
any.
(iii) The listed companies are not required to circulate
their 4th Quarter accounts. However, the companies
whose 4th Quarter closed before the promulgation of
Companies (Amendment) Ordinance, 2002 on October 26, 2002 and
which had not circulated their 4th quarter accounts
within one month of their financial year, shall be required to
circulate their annual audited accounts within three months of
the close of their financial year to avail the exemption of
non-circulation of their 4th Quarter accounts as was allowed
through Commission’s press release dated January 03, 2002.
(iv) As regards authentication and contents of quarterly
accounts, the provisions of sub-section (1) and (2) of Section
241 of the Ordinance and IAS 34 as notified vide SRO 33
(I)/2000 dated January 27, 2000 shall apply to these quarterly accounts.
(Ashfaq Ahmed Khan)
Director (Enforcement)