Sui Northern Gas Pipeline Limited’s application for second extension in the period of holding of annual general meeting (AGM) and laying of accounts therein under section 170 of the companies ordinance 1984
Karachi, December 05, 2012 (PPI-OT): This is with reference to a letter received from the Assistant Director (Enforcement) SECP EMD/233/414/2002.1496 dated November 16, 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, SNGPL 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 August 15 each year) to OGRA for determination of final tariff for the preceding financial year. After detailed scrutiny of Accounts, the OGRA normally issues its order of final tariff around 20th September. The Company then incorporates the final adjustment in the Accounts, gets this adjustment audited form external auditors and presents it to Board of Directors for its approval before presentation to the shareholders. The shareholders’ meeting is then held before 31st October.
With the exception of FY 2009-10, the Company has always met the target of holding its AGM on or before October 31, since the last six 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. on August 13, 2012, the OGRA has not yet finalized the revenue requirements of the Company which forms basis of preparation of its financial statements for the year ended June 30, 2012. The Audit of Accounts cannot be completed for want of final revenue requirements determination by OGRA.
SECP, acknowledging practical issues faced by our company has very kindly extended the due date, upto November 30, 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 30th November 2012.
In view of position explained above, the Company request for an 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 SNGPL to arrange its AGM.
We are also enclosing herewith Affidavit by undersigned, being Managing Director, Sui Northern Gas Pipeline Limited (SNGP), in original and Bank Challan dated November 22, 2012 for Rs. 15,000/- in origina1, paid on account of application fee for extension 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 for FY 2011-12, for the purpose of laying of audited. accounts of the Company for the year ended June 30, 2012 before the shareholders of the Company for their approval.
For more information, contact:
M. Arif Hameed
Sui Northern Gas Pipeline Limited
Gas House, 31- Kashmir Road,
P.O. Box: 56, Lahore (Pakistan)
Tel: 99080000, 99082000
Fax: 99201369, 99201302