Company’s Annual Filing in SECP
In Pakistan, companies registered under the Companies Act 2017 are required to file annual returns and financial statements with the Securities and Exchange Commission of Pakistan (SECP) on a regular basis. These annual filings are important for maintaining the company’s legal status and compliance with regulatory requirements. In this blog, we’ll take a look at the annual filings that companies are required to make before the SECP.
Annual Returns
The annual return is a document that provides an overview of the company’s current status and activities over the past year. It includes details such as the company’s registered office, the names and addresses of its directors and shareholders, and the details of any changes to the company’s share capital during the year.
The annual return must be filed within 42 days after the end of the company’s financial year. If the company fails to file the annual return within the specified time, it may be subject to penalties and fines.
Financial Statements
The financial statements are a detailed report of the company’s financial performance over the past year. The report includes the company’s income statement, balance sheet, and cash flow statement. It also includes the auditor’s report, which provides an independent assessment of the company’s financial performance.
The financial statements must be prepared in accordance with the International Financial Reporting Standards (IFRS) and must be audited by a registered auditor. The financial statements must be filed with the SECP within 30 days of their approval by the company’s board of directors.
Annual General Meeting
In addition to filing the annual return and financial statements, companies are required to hold an Annual General Meeting (AGM) every year. The purpose of the AGM is to provide an opportunity for shareholders to meet and discuss the company’s performance over the past year. During the AGM, the directors will present the company’s financial statements and the auditor’s report. Shareholders will also have the opportunity to ask questions and raise concerns.
The AGM must be held within six months after the end of the company’s financial year. The notice of the AGM must be sent to all shareholders at least 21 days before the meeting.
In conclusion, companies registered under the Companies Act 2017 in Pakistan are required to make annual filings before the SECP, including the annual return, financial statements, and holding an Annual General Meeting. These filings are important for maintaining the company’s legal status and compliance with regulatory requirements. Companies must ensure that they comply with the specified timelines and follow the required procedures to avoid penalties and fines.