SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN

SPECIALIZED COMPANIES DIVISION

No. SC/M/RS/Accounts/2004-
January 14, 2004

Circular No. 1/2004

Subject:             Preparation   and   transmission   of   second   quarter   accounts   by Modarabas

Consequent upon an amendment in Rule 10 of the Modaraba Companies and Modaraba Rules, 1981 (Modaraba Rules) through SRO 471(1)/2003 dated 4.6.2003, the modaraba companies are required to prepare and transmit to the certificate holders and the Stock Exchange (s) first, second and third quarter accounts of the Modarabas within one month of the close of the respective quarters. Cumulative figures for the half-year presented in the second quarter accounts are also subject to limited scope review by the statutory auditors.

2. Considering the practical difficulties expressed by Modaraba Association of Pakistan and modaraba companies, it has been decided to grant a general relaxation to the modaraba companies for circulation of second quarter accounts of the modarabas. In this context, modaraba companies instead of one month as prescribed under rule 10 of the Modaraba Rules may circulate second quarter accounts of the modarabas, with limited scope review within a period of two months from the close of second quarter. Furthermore, it is clarified that the modaraba companies shall circulate first and third quarter accounts of the modarabas within the period of one month from the close of the respective quarters as prescribed under rule 10 of the Modaraba Rules.

(Akbar Shah)
Registrar Modaraba Companies and Modaraba

Distribution:

1.  Chief Executive, all modaraba companies.

2.                 Modaraba Association of Pakistan.

3.                 The Institute of Chartered Accountants of Pakistan, Karachi.

4.                 The Institute of Cost and Management Accountants of Pakistan, Karachi.

5.                 All Stock Exchanges.

6.                 Office copy.