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 BSD Circular No.01
January 07, 2004 


The Presidents/Chief Executives
All Banks/DFIs


Dear Sirs/Madam, 

Master Circular on Financial Disclosure – Frequency & Timelines

           Present day banking and other financial services are subject to high standards of corporate governance and risk management. The purpose of all these efforts lies in making the business as transparent as possible and inline with the best international standards & practices of financial disclosure. 

2 To maximize financial disclosure, the corporate sector, including banks / DFIs, have been issued instructions in the form of various sections of the Companies Ordinance, 1984, Banking Companies Ordinance (BCO), 1962, listing requirements of the stock exchanges, Code of Corporate Governance of the SECP and the circulars issued by State Bank of Pakistan (SBP).

3 In order to facilitate banks / DFIs to ensure compliance of statutory / regulatory requirements regarding financial disclosure, it has been decided to issue this Master Circular containing consolidated instructions on the subject. All banks / DFIs, listed or non-listed – including branches of foreign banks and those which have peculiar shareholding structure, are advised to follow the instructions as given below:

3.1 At the end of each accounting year, all banks are required to prepare their annual financial statements in the prescribed manner, as on the last working day of that year. These financial statements together with the auditor’s report, as passed in the Annual General Meeting, shall be published and circulated as well as furnished, as returns, to the SBP as prescribed in the BCO, 1962.
Further, all DFIs are also required to prepare their annual financial statements at the end of each accounting year as on the last working day of that year. These financial statements together with the auditor’s report, as passed in the Annual General Meeting, shall be circulated to the shareholders and furnished as returns to the SBP within three months of the close of the period to which they relate. Furthermore, an abridged version of the financial statements shall also be published in the newspaper(s) within the stipulated time.

3.2 For 1st and 3rd quarter, quarterly un-audited financial statements, along with directors’ review, shall be prepared by all banks / DFIs, including the branches of foreign banks, within 45 days of the close of the quarter to which they relate. These quarterly financial statements shall be circulated by domestic banks / DFIs to their shareholders. Furthermore, an abridged version of the quarterly financial statements shall be published in the newspaper(s) by all banks / DFIs, including branches of foreign banks, within the aforesaid time.

3.3 Half yearly (2nd quarter) financial statements, with limited scope review by the statutory auditors, shall be prepared by all banks / DFIs, including the branches of foreign banks, within two months of the close of the half-year (2nd quarter). These half-yearly statements shall be circulated to the shareholders by domestic banks / DFIs. Furthermore, an abridged version of the half-yearly financial statements shall be published in the newspaper(s) by all banks / DFIs, including branches of foreign banks, within the aforesaid time

4 Besides above, other requirements of Code of Corporate Governance regarding financial disclosure shall remain applicable, provided they are not inconsistent with the SBP’s instructions. Moreover, Quarterly Report of Condition, and other returns / reports, presently being submitted by the banks / DFIs to SBP shall continue to be submitted as required.

          Please acknowledge receipt.


Yours faithfully,
(Jameel Ahmad)
Director

 

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