Karachi: Chakwal Spinning Mills Limited (CWSM) has been flagged for further non-compliance with Pakistan Stock Exchange (PSX) regulations, adding to its existing challenges. The company, already listed in the Defaulters' Segment due to non-compliance with PSX Regulations 5.11.1.(a) and (g), now faces additional scrutiny for failing to hold its Annual General Meeting (AGM) and present its Annual Audited Financial Statements for the fiscal year ending June 30, 2024. This non-compliance triggers actions under PSX Regulations 5.11.1.(b) and (c).

According to information available from the Pakistan Stock Exchange (PSX), Regulation 5.11.1.(b) mandates that a listed company may be placed in the Non-Compliant Segment if it fails to conduct its AGM or Annual Review Meeting (ARM) as required by law. Regulation 5.11.1.(c) applies when a company does not submit its annual audited financial statements for the immediately preceding financial year. If CWSM does not rectify these issues within six months of its placement on the Non-Compliant Segment, a Risk Warning Alert will be issued. A failure to comply for two consecutive years would result in the suspension of trading in the company's shares.

Additionally, PSX Regulation 5.11.8 stipulates that if a company has multiple grounds for placement in the Non-Compliant or Winding-up Segment, the PSX will proceed with actions based on the earliest issue leading to suspension or delisting. CWSM must rectify its current non-compliance by June 5, 2025, to avoid further penalties. If the company resolves the issues related to Regulations 5.11.1.(b) and (c) within the given timeframe, it will continue to be quoted in the Defaulters' Segment under the existing non-compliances of Regulations 5.11.1.(a) and (g).

Stakeholders and concerned parties are advised to take note of these developments.