Karachi, November 29, 2012 (PPI-OT): This is with reference to a letter received from the Assistant Director (Enforcement) SECP, EMD/233/415/2002-1495 dated 16 November 2012.
The finalization of our Annual Accounts for year ending June 30, 2012 is pending due to the final determination of tariff by OGRA for the year 2011-12. Being a gas distribution company, SSGCL is subject to two regulators. i. e. Oil and Gas Regulatory Authority (OGRA) as well as Securities and exchange Commission of Pakistan (SECP).
As a standard practice, Accounts of our company initiated by external auditors are submitted (on or before 15 August each year) to OGRA for determination of final tariff for the preceding financial year. After detailed security of Accounts, the OGRA normally Issues its order of final tariff around 20 September.
The Company then incorporates the final adjustment in the Accounts, gets this adjustment audited from external auditors and presents it to Board of Directors for its approval before presentation to the shareholders. The shareholders’ meeting is than held before 31 October.
With the exception of FY 2007-08, the Company has always met the target of holding its AGM on or before 31 October, since the last several years. This target is met annually with extreme hard work of our staff as well as our auditors, however, despite of the fact that Company had submitted its tariff case to OGRA prior to the due date i.e. 15 August 2012, OGRA has not as yet finalized the revenue requirements of the Company which forms basis of preparation of its financial statements for the year ended 30 June 2012.The Audit of Accounts cannot be completed for want o final revenue requirements determination by OGRA.
SECP, acknowledging practical Issues faced by our company had very kindly extended the date, upto 30 November 2012, for holding of AGM and laying of Accounts therein under Section 158 and 233 of the Companies Ordinance, 1984.
However, we are now again forced to seek further extension as, determination of final tariff for FY 2011-12 is still pending with OGRA and even after repeated requests to OGRA it seems unlikely that OGRA will announce the final tariff within the time frame, which will enable us to hold AGM by the extended due date of 30 November 2012.
In view of the position explained above, the Company hereby requests for further extension, for holding of AGM, and laying of Accounts therein, for 35 days from the date on which OGRA communicates the final tariff requirement for the FY 2011-12, as it is estimated that 14 days will be required to finalize accounts, arrange audit report from Auditors, approval of Accounts by Board and printing of accounts, in addition to statutory requirement of 21 days prior notice to hold AGM. Accordingly, in total not less than 35 days, from the date of receipt of OGRA’s decision, will be required for SSGCL to arrange its AGM.
We are also enclosed herewith Affidavit by undersigned, being Managing Director, Sui Southern Gas Company Limited, in original and Bank Challan dated 28 November 2012 for Rs. 15.000/- in original, paid on account of application fee for extension in the date of holding of AGM.
Keeping in view our legitimate constraints, it is requested that you may kindly fix the date for holding AGM of our Company, 35 days after the date of OGRA announcement of final tariff requirement of FY 2011-12, for the purpose of laying of audited accounts of the Company for the year ended 30 June 2012 before the shareholders of the Company for their approval.
For more Information, contact:
Karachi Stock Exchange
Tel: (92-21) 111-001122
Fax: (92-21) 3241 0825, (92-21) 3241 5136