Karachi: Nestlé Pakistan Limited has been granted an exemption by the Securities and Exchange Commission of Pakistan (SECP) from consolidating its financial statements with its wholly-owned subsidiary, Waters and Premium Beverages PK (Private) Limited. This exemption applies for the nine-month period ending September 30, 2026, and the financial year ending December 31, 2026. The exemption is issued under Section 228(7) of the Companies Act, 2017, as detailed in a letter from the SECP dated October 7, 2026.
The decision allows Nestlé Pakistan to present standalone financial statements without integrating the financials of its subsidiary, Waters and Premium Beverages PK, for the specified periods. This move comes as part of the company's compliance with the applicable provisions of the Securities Act, 2015, and the Pakistan Stock Exchange's Rule Book. The exemption is contingent on Nestlé Pakistan disclosing the subsidiary's financial highlights in its standalone statements, where applicable, and adhering to other conditions outlined by the SECP.
According to information available from the Pakistan Stock Exchange (PSX), Nestlé Pakistan's application for this exemption cited the subsidiary's status and operational commencement as factors influencing the consolidation decision. The SECP has mandated that if the subsidiary has not commenced operations, the company must disclose this status and the rationale for the non-consolidation within its financial statements.
Furthermore, Nestlé Pakistan is required to make the subsidiary's financial accounts freely available for inspection by its members at the company's registered office or another designated business location. This ensures transparency and compliance with regulatory standards while providing stakeholders access to pertinent financial data.
The SECP's approval of this exemption reflects its acknowledgment of Nestlé Pakistan's specific circumstances and compliance efforts, while setting conditions to maintain financial transparency and accountability. This development marks a significant administrative decision within the designated market category, impacting the company's financial reporting for the current fiscal year.