K-Electric commences finalization and audit of financial statements for FY17-18

March 7, 2019 (MLN): K-Electric Company Limited has informed Pakistan Stock Exchange that the new joint auditors of the company, i.e. A.F. Ferguson & Co. and BDO Ebrahim & Co., have been immediately engaged by the Management and the process has commenced to finalize and audit financial statements for FY 2017 and 2018 at earliest, in order to ensure that minimum time is required for finalization of financial statements post any decision by the Sindh High Court in the said law suit.

The former auditors of K-Electric, i.e. KPMG Taseer Hadi & Co., did not finalize the preparation and audit of financial statements for the year ended 30 June 2017 as applicability of Multi Year Tariff (MYT) for the company was pending adjudication with and stayed by Sindh High Court. Moreover, the auditors also specified that the delay in finalizations and audit of financial statements for FY 2017 will also impact preparation of financial statements and audit process for the year ended 30 June 2018.

While assuring the SECP that the company is taking all necessary actions to sort out the matter prudently to hold AGM for FY 2017 and 2018 as soon as possible, the company also reiterated that the matter is dependent on the pending suit with Sindh High Court. Accordingly, the company will be therefore be seeking direction from the SECP in due course to hold AGM of the company for FY 2017 and 2018.

Moreover, the Company also requested SECP to condone the delay in releasing the quarterly/six monthly accounts for the periods ended 30 September 2016, 31 December 2016, 31 March 2017, 30 September 2017, 31 December 2017, 31 march 2018, 30 September 2018 and 31 December 2018 which are contingent upon finalization of Annual Audited Financial Statements for FY 2017 and/or 2018.

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