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SECP relaxes rule for quarterly accounts circulation

KARACHI (December 25 2002) : The Securities and Exchange Commission of Pakistan (SECP) has relaxed the rules pertaining to distribution of quarterly accounts from the listed companies, allowing them to take one-time incentive.

According to a notice received by the Karachi Stock Exchange, the SECP said that consequent upon an amendment in the Companies Ordinance, 1984 through the Companies (Amendment) Ordinance, 2002, the listed companies are required to circulate their 1st, 2nd and 3rd quarter accounts within one month of the close of the respective quarter.

Further, through the SECP Circular No 16/2002 dated December 11, 2000, listed companies were directed to ensure that the cumulative figures for half-year presented in the second quarter accounts are subject to limited scope review by the statutory auditors.

The Commission has received communications from some of listed companies whose financial year closed on June 30, 2002, that due to recent change they are finding it difficult to circulate 2nd quarter accounts for the period ending on December 31, 2002, within one month of the close of the said quarter ie up to January 31, 2003, as they have already set mutually convenient dates for their Board Meeting for approval of accounts for the period ended December 31, 2002, before the promulgation of the Companies (Amendment) Ordinance, 2002.

Certain other listed companies whose financial year closed on September 30, 2002, and which have not circulated their 4th quarter accounts, have represented that they may also be allowed to circulate their annual audited accounts within four months of the close of their financial year ie by January 31, 2003.

In view of the practical difficulties being faced by the listed companies in complying with the provisions of section 245 as amended through the Companies (Amendment) Ordinance, 2002, so far as they relate to the preparation and circulation of 2nd quarter accounts for the period ended December 31, 2002, the Commission has granted a one-time general relaxation to listed companies for circulation of their 2nd quarter accounts which would end on December 31, 2002, within two months thereof.

Accordingly, such companies may circulate their 2nd quarter accounts for the period ended December 31, 2002, by February 28, 2003.

For the listed companies whose financial year has ended on September 30, 2002, and which have not circulated their 4th quarter accounts, the Commission has further allowed such companies to circulate their annual audited accounts by January 31, 2003.

Such companies should, however, hold their Annual General Meetings by March 31, 2003, as required under Circular No 13/2002 dated November 6, 2002.

The listed companies have been advised to strictly follow all other statutory requirements in respect of circulation of accounts and holding of their Annual General Meetings.

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