SSGC seeks another 35 days to hold AGM

Sui Southern Gas Company Limited (SSGCL) has requested SECP for a second time for a 35-day extension in the period for holding the Annual General Meeting (AGM) and presentation of its accounts therein Under Section 170 of the Companies Ordinance of 1984. SSGC wrote a letter to the Securities Exchange Commission of Pakistan (SECP) for extension after the first extension expired on Friday (today).
The finalisation of SSGC's annual accounts for year ending June 30, 2012 is pending because of the final determination of tariff by Ogra for 2011-12. Being a gas distribution company, SSGCL is subject to two regulators - Oil & Gas' Regulatory Authority (OGRA) and SECP.
As a standard practice, accounts of SSGCL initialled 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 scrutiny of accounts, Ogra normally issues its order of final tariff around 20 September. The Company then incorporates final adjustment in its accounts, gets this adjustment audited from external auditors and presents it before its Board of Directors for approval before presenting the same before shareholders. The shareholders' meeting is then held before October 31.
According to SSGC's letter, the Company had submitted its tariff case to Ogra much before the due date ie August 15 this year, but Ogra has not yet finalised 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 of final revenue requirements determination by Ogra."
SECP, acknowledged practical issues faced by SSGC and extended the date till November 30 for holding of AGM and laying of Accounts therein under sections 158 and 233 of the Companies Ordinance, 1984. However, the company was again forced to seek further extension as determination of final tariff for FY 2011-12 was still pending before Ogra and it seemed unlikely that Ogra would announce the final tariff within the timeframe, which would have enabled SSGCL to hold AGM by November 30.
In view of the current situation, SSGC requested SECP for a 35-day extension "from the date on which Ogra communicates the final tariff requirement for the FY 2011-12, as it is estimated that 14 days wilt be required to finalise 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".