Company Ordinance 2016 recently added a provision that requires all the listed companies to send quarterly financial statements electronically to the Security and Exchange Commission of Pakistan (SECP).
SECP’s law division disseminated Circular no. 19 stating, “Transmission of annual and quarterly Financial Statements of Listed Companies to the Commission”. Besides hard copies of auditor’s report, director’s report, chairman’s review report and financial statements, listed companies shall also send the electronic copy of quarterly financial statements to the Commission.
The designated email address is firstname.lastname@example.org. Companies are required to transmit the statements and other reports in both PDF as well as MS word/excel format. The electronic submission is not the alternate for hard form submission. Listed companies should send the reports and statements, both electronically and in hard form. Three hard copies are required to be sent to Commission.
Previously, approval of Commission and shareholders was required in order to send the reports electronically but this has been rendered superfluous by the Ordinance and hence withdrawn. The new provision in Company Ordinance encourages the use of technology in conducting business.
The circular was distributed to CEOs of all listed companies through email, Presidents of Institute of Chartered Accountants of Pakistan (ICAP) and Institute of Cost and Management Accountants of Pakistan (ICMAP) and was also placed on SECP’s website.