Karachi: K-Electric Limited has submitted an application for a 30-day extension to hold its Annual General Meeting (AGM) for the fiscal year 2023-24. The company, citing delays due to unresolved tariff determinations by the National Electric Power Regulatory Authority (NEPRA), has requested regulatory approval to extend the AGM deadline to 27 November 2024.

According to the documentation provided by K-Electric, the request includes an application under section 132 of the Companies Act 2017, an affidavit by the Company Secretary, a certificate from the company's auditors dated 23 September 2024, the Annual Report for the year ended 30 June 2023, and a receipted challan evidencing payment of the applicable fee dated 24 September 2024.

K-Electric's last AGM was held on 26 October 2023, where financial statements for the year ended 30 June 2023 were approved. Normally, the AGM for the subsequent fiscal year would be due by 28 October 2024. However, the company has faced complications due to the expiration of its Multi-Year Tariff (MYT) in June 2023 and ongoing negotiations with NEPRA for the determination of a new tariff. The absence of a finalized tariff has left significant portions of the company's financial results indeterminate, thus preventing the finalization of its financial statements.

According to information available from the Pakistan Stock Exchange (PSX), the delay is attributed to the non-finalization of audit processes and the non-completion of books of accounts, as detailed in the company's application. The auditors' certificate supports K-Electric's position by confirming the state of the financial records and the reasons for the audit's delay.

K-Electric has communicated the reasons for the AGM extension to both the Securities and Exchange Commission of Pakistan (SECP) and the PSX and is actively pursuing the finalization of the MYT from NEPRA to resolve the financial uncertainties.