LAHORE, July 9: The All Pakistan Textile Association (Apta) says certain changes brought about in the budget like reduction in time for holding AGM are proving to be a problem for the industry.
In a letter addressed to the chairman of the Securities and Exchange Commission of Pakistan (SECP), Apta Chairman Adil Mahmood has asked the regulator to look into the changes and withdraw them.
The letter says the mills finalise sales tax returns on the 15th of the month following the month for which the returns are to be filed. Therefore, the notice for board of directors meeting requires one week and then notice for the AGM requires three weeks if there is no special business.
“With six weeks gone from the twelve weeks allowed for releasing the audited accounts, the mills only have five to six weeks to have accounts prepared, finalised, audited and printed in terms of the extremely demanding and stringent accounting and auditing standards.
“The undertaking of the AGM in practically five weeks working time is a Herculean task, indeed. This should be reviewed and leave the AGM time at four months from the year end as it was before,” the letter said.
On the appointment of an independent share registrar, it said the textile industry was already crying for help due to the extraordinary increases in cost of production and now this additional expense is being imposed upon the mills.
“The SECP should withdraw this new condition of appointing an independent registrar as our members already have registrar departments and do not wish to increase their costs and dismiss existing employees working in their registrar departments,” it said.
The letter said the requirements relating to the listed companies were already so strict and costly that many of the industries had chosen to de-list and new listings were not being done.
“If such rules continue to be made stricter and expenses associated with being a listed company is increased so much then, we are afraid that our members will be discouraged further from getting listed,” it said.
