Karachi: Arif Habib Limited (AHL) has announced its decision to seek an extension for laying its annual financial statements for the fiscal year ended 30th June 2024. The request for additional time is in anticipation of a court decision that could significantly affect the financial disclosures.
Arif Habib Limited is engaged in a major corporate restructuring that includes the demerger of certain non-core businesses and their amalgamation into Arif Habib Corporation Limited, the holding company. This Scheme of Arrangement was proposed to the Honorable High Court of Sindh at Karachi, with final approvals pending. As the court's decision is expected soon, AHL has opted to delay its Annual General Meeting (AGM) and the presentation of its financial statements. According to information available from the Pakistan Stock Exchange (PSX), the restructuring has been well-received by stakeholders, with approvals from both boards and a positive nod from regulatory bodies.
The management believes that issuing financial statements prior to the finalization of the court's decision would not present a complete view of the company's fiscal situation. Such premature disclosures could lead to future restatements and potential confusion among shareholders and investors. Therefore, AHL has applied for a 30-day extension under the relevant provisions of the Companies Act, 2017, to ensure that all financial reports accurately reflect the post-restructuring reality of the business.
The next hearing at the High Court is scheduled for 2nd October 2024, where a decision is eagerly anticipated. In the meantime, AHL is committed to maintaining transparency with its shareholders and ensuring compliance with all statutory requirements.
The audit of Arif Habib Limited's financial statements for the year ended 30th June 2024 is currently underway, with completion targeted shortly after the impending court decision regarding the company's major restructuring.
This audit is crucial as it encompasses the financial impacts of the proposed Scheme of Arrangement involving the demerger and subsequent amalgamation of certain business units into Arif Habib Corporation Limited. The scheme is pending final approval by the Honorable High Court of Sindh. The decision will enable auditors to finalize the audit procedures and issue a comprehensive audit report.
Arif Habib Limited aims to ensure that the audit report reflects the adjusted financial state post-restructuring, providing a clear and accurate fiscal picture to stakeholders and complying with all regulatory requirements.