Karachi: SME Leasing Limited has announced it is seeking an extension for the submission of its quarterly financial statements for the periods ending March 31, 2024, and June 30, 2024. The request, detailed in a response to a Pakistan Stock Exchange inquiry dated September 3, 2024, cites severe financial distress and ongoing winding up proceedings as the primary reasons for the delay.

According to information available from the Pakistan Stock Exchange (PSX), the company, a subsidiary of the Ministry of Finance-owned SME Bank Limited, has been grappling with liquidity issues that have intensified over the past months. In a board meeting on July 11, 2024, it was decided that future financial statements would be prepared on a non-going concern basis, indicating a lack of confidence in the company's ability to continue as a viable entity.

The company's Annual General Meeting, held on July 22, 2024, approved the audited financial statements for the year ended December 31, 2023. However, the firm's operational challenges have been compounded by a lack of key management personnel, including the Company Secretary, CFO, and Internal Auditor, with most employees having departed due to the financial constraints.

SME Leasing Limited is actively engaging with the Securities Exchange Commission of Pakistan, the State Bank of Pakistan, and the Ministry of Finance to discuss the procedures for winding up. The company has requested a two-month extension from PSX to meet the regulatory requirements, apologizing for the inconvenience caused by these unforeseen circumstances and affirming its commitment to adhere to future reporting guidelines.