This presentation compares the various provisions in the Companies Act 1913, Companies Ordinance 1984 and Draft Companies Bill 2016, and in Indian Companies Act 2013 by AICPA of USA and IFAC.
I made this presentation in the Stakeholders Conference on Draft Companies Bill, 2016 organized by Institute of Cost & Management Accountants of Pakistan on November 5, 2016 in Karachi, Pakistan.
The document summarizes Pakistan's judicial system. It outlines that the system consists of a superior judiciary led by the Supreme Court, and a subordinate judiciary comprising various district, civil, and specialized courts. It also discusses the role and jurisdiction of courts at the federal and provincial levels, including High Courts, as well as tribal and military courts. The judiciary aims to preserve constitutional rule and protect citizens' fundamental rights according to the laws of Pakistan.
This document provides an overview of the Insolvency and Bankruptcy Code 2016 presented by Sandeep Jhunjhunwala at a conference on December 16, 2016. It discusses key aspects of the code including consolidating existing insolvency laws, establishing time-bound resolution processes, and creating a new insolvency infrastructure led by the Insolvency and Bankruptcy Board of India, Insolvency Professionals, and Adjudicating Authorities.
The document provides information about upcoming classes, assessments, and recommended reading materials. It also outlines topics related to the criminal courts, including the differences between the Magistrates' Court and Crown Court. Finally, it lists learning objectives related to the English court system, civil courts, and alternative dispute resolution.
The document discusses civil courts in Pakistan. It begins with defining civil courts as courts that deal with disputes between individuals or private entities, rather than criminal cases. It then outlines the hierarchy of the judiciary in Pakistan, with civil courts sitting below the superior courts. It describes the different classes of civil courts and their jurisdictions. It also covers the procedures for filing a civil suit, including requirements for standing, capacity and pleadings. Key points include that civil procedure is governed by the Code of Civil Procedure 1908 and civil courts are established by provincial laws.
The document discusses the functions and structure of the Federal Board of Revenue (FBR) of Pakistan. It provides information on the FBR's mission, organizational chart, roles of different members, objectives of tax reforms, and functions of income tax authorities. Some key points include:
- FBR is responsible for enforcing fiscal laws and collecting revenue for the government of Pakistan. Its mission is to optimize revenue collection through modern techniques and quality taxpayer services.
- The organizational structure includes members for policy, operations, customs, taxpayers audit, administration, legal, planning and other areas.
- Objectives of tax reforms are to widen the tax base, streamline rates and improve voluntary compliance through simplification and a taxpayer
Askari Bank is a commercial bank in Pakistan that was founded in 1991 and acquired by Fauji Group in 2013. It has expanded to around 250 branches nationwide and an offshore banking unit in Bahrain. The document discusses clearing processes between banks, including inward and outward clearing of checks. It describes the role of the National Institutional Facilitation Technology (NIFT) in facilitating automated check clearing and settlement between banks through centralized processing. Key steps in inward and outward check clearing processes are outlined.
The document discusses various types of banks and accounts in Pakistan. It provides details on commercial banks, agricultural banks, industrial banks, mortgage banks, exchange banks, and saving banks. It then discusses account opening procedures and requirements at Askari Commercial Bank, including the rights and duties of customers. Products and services offered by Askari Commercial Bank are outlined, including personal finance, mortgage finance, business finance, credit cards, and travelers cheques. Departments within the bank are also listed.
The document summarizes Pakistan's judicial system. It outlines that the system consists of a superior judiciary led by the Supreme Court, and a subordinate judiciary comprising various district, civil, and specialized courts. It also discusses the role and jurisdiction of courts at the federal and provincial levels, including High Courts, as well as tribal and military courts. The judiciary aims to preserve constitutional rule and protect citizens' fundamental rights according to the laws of Pakistan.
This document provides an overview of the Insolvency and Bankruptcy Code 2016 presented by Sandeep Jhunjhunwala at a conference on December 16, 2016. It discusses key aspects of the code including consolidating existing insolvency laws, establishing time-bound resolution processes, and creating a new insolvency infrastructure led by the Insolvency and Bankruptcy Board of India, Insolvency Professionals, and Adjudicating Authorities.
The document provides information about upcoming classes, assessments, and recommended reading materials. It also outlines topics related to the criminal courts, including the differences between the Magistrates' Court and Crown Court. Finally, it lists learning objectives related to the English court system, civil courts, and alternative dispute resolution.
The document discusses civil courts in Pakistan. It begins with defining civil courts as courts that deal with disputes between individuals or private entities, rather than criminal cases. It then outlines the hierarchy of the judiciary in Pakistan, with civil courts sitting below the superior courts. It describes the different classes of civil courts and their jurisdictions. It also covers the procedures for filing a civil suit, including requirements for standing, capacity and pleadings. Key points include that civil procedure is governed by the Code of Civil Procedure 1908 and civil courts are established by provincial laws.
The document discusses the functions and structure of the Federal Board of Revenue (FBR) of Pakistan. It provides information on the FBR's mission, organizational chart, roles of different members, objectives of tax reforms, and functions of income tax authorities. Some key points include:
- FBR is responsible for enforcing fiscal laws and collecting revenue for the government of Pakistan. Its mission is to optimize revenue collection through modern techniques and quality taxpayer services.
- The organizational structure includes members for policy, operations, customs, taxpayers audit, administration, legal, planning and other areas.
- Objectives of tax reforms are to widen the tax base, streamline rates and improve voluntary compliance through simplification and a taxpayer
Askari Bank is a commercial bank in Pakistan that was founded in 1991 and acquired by Fauji Group in 2013. It has expanded to around 250 branches nationwide and an offshore banking unit in Bahrain. The document discusses clearing processes between banks, including inward and outward clearing of checks. It describes the role of the National Institutional Facilitation Technology (NIFT) in facilitating automated check clearing and settlement between banks through centralized processing. Key steps in inward and outward check clearing processes are outlined.
The document discusses various types of banks and accounts in Pakistan. It provides details on commercial banks, agricultural banks, industrial banks, mortgage banks, exchange banks, and saving banks. It then discusses account opening procedures and requirements at Askari Commercial Bank, including the rights and duties of customers. Products and services offered by Askari Commercial Bank are outlined, including personal finance, mortgage finance, business finance, credit cards, and travelers cheques. Departments within the bank are also listed.
CLAUSE 35B & 49 OF LISTING AGREEMENT OF SEBI ANAND KANKANI
SEBI HAS AMENDED THE CLAUSE 35B & 49 OF THE LISTING AGREEMENT FOR THE LISTED COMPANIES.
CLAUSE 35B HAS MANDATED THE E-VOTING FOR PASSING THE RESOLUTION
CLAUSE 49 DEALS WITH THE CORPORATE GOVERNANCE.
Presentation on formation of company (pakistan)Arshad Islam
The document outlines the steps and requirements for registering a new company in Pakistan. It discusses the key stages in company formation: promotion, incorporation, subscription, and commencement. It provides details on the legal documents required like the memorandum of association, articles of association, and documents needed for registration with the registrar including capital structure, director information, and prospectus. Once minimum share subscription levels are met and director shares are paid, a certificate of commencement can be obtained to legally operate the business. The Securities and Exchange Commission of Pakistan oversees company registration through regional Company Registration Offices.
The registration process for a company in India involves several steps. First, the company must get approval for its proposed name from the Registrar of Companies in the relevant state. Next, the company must file its Memorandum and Articles of Association with the ROC along with the requisite fees. Finally, once all documents are properly filed, the ROC will issue a Certificate of Incorporation, officially establishing the company. The process from filing until receiving the certificate can take one to two weeks. Additionally, companies must obtain necessary tax registrations like a Permanent Account Number.
The document provides an overview of Pakistani law and its sources. It discusses how Pakistani law is based on British common law and was influenced by the incorporation of Islamic Sharia law. The main sources of law in Pakistan include the constitution, statutes, common law, and Islamic legal sources like the Quran and Sunnah. The document also summarizes the Constitution of Pakistan from 1956 and 1973, outlining their key features. Finally, it discusses the corporate law situation in Pakistan, noting that companies are currently governed by the Companies Ordinance of 1984, which aims to protect investors and promote economic development.
The document summarizes the judicial system of Pakistan. It discusses the following key points:
1. The judicial system has evolved over time from Hindu, Muslim, and British rule and is now based on English common law mixed with Islamic law.
2. The system includes the Supreme Court, high courts, district and sessions courts, special tribunals, and family and juvenile courts.
3. Appointments of judges were reformed in 2010 to establish a judicial commission and parliamentary committee process in response to allegations of favoritism.
The document summarizes the key provisions of Section 498A of the Indian Penal Code, which deals with cruelty by a husband or relative of the husband towards a married woman. It discusses the mandate behind introducing Section 498A to strengthen anti-dowry laws and stop offenses of cruelty against married women. It also summarizes some important court judgments related to Section 498A and the Law Commission's recommendations to reform the law and make arrests and investigations more rigorous.
Corporate law in pakistan
Pakistan came into being, the Companies Act, 1913 was adopted.
In the year 1984, the President of Pakistan passed the Companies ordinance, 1984.
At then the Companies act 1913 was repealed.
Currently, companies ordinance, 1984 is the main law regarding companies and it regulates all matters relating to the companies.
514 sections and eight Schedules.
Later, time to time, different amendments have been made in it.
Growth of the Corporate Enterprises
Protection of Investors and Creditors
Promotion of investment and development of economy and matters arising out of above factors or connected therewith.
Main source of Company Law is the companies ordinance, 1984.
The Companies Rules, 1985. It provides guidance to follow the law.
Notifications and circulars, etc., issued by the Securities and Exchange Commissions of Pakistan (SECP) or the Federal Government.
The Case Laws of High Court and Supreme Court.
A company becomes an Artificial legal person and recognized by law as person.
It is not a natural person.
Does not have heart, mind, hands or feet but still recognized by law as a person that is why it is considered to be Artificial Legal Person.
Can purchase assets in its name,
Have liabilities in its name.
Sue or can be sued.
The company is said to be a separate and distinct entity.
But separate from whom?
It means that company is separate from its.
The liability Company and the liability of members are different.
If company is sued it does not mean member is sued.
Bank account of owner VS company
The members are the owners of the company.
But they don’t directly manage the company.
The members elect the directors who manage the company.
Directors acts independently from the members.
The members are not the agents & cannot bind the company in any contract.
Directors are the agents of the company and manage the company.
Directors are elected normally out of members but members other than directors are not part of management.
The document provides an overview of Pakistan's constitutional history from 1909 to 1973. It discusses several key acts and constitutions:
- The Minto-Marley Reforms of 1909 expanded legislative councils and gave Muslims separate representation.
- The Government of India Act of 1935 established a federal structure and provincial autonomy.
- The 1956 constitution established Pakistan as an Islamic republic with fundamental rights and a parliamentary system.
- The 1962 constitution established a powerful presidential system but centralized power in the presidency.
- The 1973 constitution returned to a parliamentary system with a ceremonial president, bicameral parliament, and protection of fundamental rights and Islamic provisions.
This document provides information about Askari Bank, including its vision, mission, core values, corporate philosophy, history, products and services, and Islamic banking division. It outlines Askari Bank's vision to be the leading private sector bank in Pakistan and its mission to deliver quality service through innovative technology. It also lists the bank's core values of commitment to customers, integrity for investors, fairness for regulators, teamwork for employees, and service to communities.
Askari Bank was incorporated in Pakistan in 1991 as a public limited company. It commenced banking operations in 1992 and is principally engaged in the business of banking. Since inception, the bank has focused on growth through improving service quality, investing in technology and people, and utilizing its extensive branch network. Corporate social responsibility is also an integral part of the bank's operations. The bank provides various banking products and services, including Askari Ijarah Bis Sayyarah, which is an Islamic car financing product that complies with Shariah law.
The document summarizes Pakistan's legal and judicial system. It outlines that the system stems from the British system used in India. The Supreme Court is the highest court with the Chief Justice appointed by the President. It has ultimate authority over law and constitution. Lower courts include provincial High Courts and district-level civil and criminal courts that handle related cases and appeals. The purpose of the legal system is to fairly interpret and enforce laws through orderly dispute resolution.
The document outlines the 12 step legislative procedure in Pakistan for passing a bill into law. It begins with introducing a bill in the National Assembly or Senate. It then goes through readings and debates in both houses, with opportunities for amendments. It can be referred to committees. If passed by both houses, the bill is sent to the President for assent to become an Act of Parliament. Key types of bills are also defined such as Government, Private Members, Constitution Amendment and Financial bills.
The document discusses planning machinery and processes in Pakistan. It outlines the evolution of planning agencies in Pakistan from the Development Board to the Planning Commission. It describes the Planning Commission's role in formulating national plans including annual, five-year, and long-term perspective plans. It also discusses the objectives of economic planning in Pakistan and the process of identifying and approving development projects. Finally, it notes some weaknesses in Pakistan's planning system and provides recommendations to strengthen economic planning and development.
Pakistan was founded in 1947 by Quaid-e-Azam Mohammad Ali Jinnah and emerged as an independent state on August 14th, 1947. It has a total area of 796,095 sq km and a population of over 167 million people. Pakistan is divided into 4 provinces: Sindh, Punjab, Khyber Pakhtunkhwa, and Balochistan. The country faces a governance crisis due to factors such as lack of competent leadership, political instability, corruption, weak institutions, fragile economy, terrorism, and nepotism. Key events that exacerbated the crisis include periods of martial law beginning in 1958 and the fall of Dhaka in 1971.
The document provides background on a partnership between the British Council and UN ESCAP to promote social enterprises in Pakistan. It discusses the objectives, methodology, and challenges of developing social enterprises in Pakistan. Specifically, it notes social enterprises have grown in Pakistan but face regulatory, policy, funding and cultural barriers. It proposes recommendations to address these challenges, including reforms to taxation, procurement policies, and increasing access to finance. Overall the document aims to inform policymakers on developing a strategy to better support the social enterprise sector in Pakistan.
Bank Al-Falah was established in 1997 as a commercial bank and provides various banking services through over 100 branches across Pakistan. The document discusses Bank Al-Falah's planning processes including goals, strategies and factors considered, as well as its organizational structure, leadership approaches, controls, ethics, culture and design. It also outlines the bank's history, management team, and approaches to planning, organizing, leading, controlling and other functions.
Salient feature of 1973 constitution of pakistanEHSAN KHAN
Salient feature of 1973 constitution of Pakistan
Constitution is the set of law and principals that determines the nature, functions and limits of the government and other institutions.
Financial ratios analysis project at Nestle and Engro Foodsraboz
Nestle and Engro Foods are analyzed in the document. Nestle has been operating in Pakistan since 1988 and has a wide range of food products. It aims to be the leading nutrition, health and wellness company in Pakistan. Engro Foods also offers various food products and was the first company to use bactofuge technology. Through financial analysis, it is found that while Nestle has been in business longer, Engro has grown efficiently and increased its share price significantly despite being newer. The document examines the companies' financial statements and ratios to compare their financial performance and positions.
The document discusses the independence of the judiciary in Pakistan. It notes that Pakistan operates a hierarchical court system with the Supreme Court and High Courts. While the constitution aims to separate powers, military dictators have undermined judicial independence. The 2007 Lawyers' Movement protested the suspension of the Chief Justice and helped reinstate an independent judiciary. However, recent high-profile cases involving Nawaz Sharif and Benazir Bhutto's assassination showed the judiciary still faces interference, so complete independence remains elusive.
The document discusses corporate governance under the Companies Act, 2017 in Pakistan. It defines corporate governance and outlines reasons for its importance, including corporate corruption cases and safeguarding public money. It describes Pakistan's corporate governance mechanisms including the Companies Act, Code of Corporate Governance, and Listed Companies Regulations. It also discusses types of companies, statutory officers like directors, CEO, CFO, and committees including the audit committee.
This document provides an overview of audit reports for three Pakistani textile mills - Gul Ahmed, Nishat Mills, and Sapphire Textile. It includes the independent auditors' reports and key details for each company. The auditors provide an opinion that the financial statements for each company present a true and fair view of the company's financial position and performance. They identify key audit matters such as stock valuation, borrowings, contingencies, and revenue recognition. The auditors are responsible for obtaining evidence to support their opinion on the financial statements.
CLAUSE 35B & 49 OF LISTING AGREEMENT OF SEBI ANAND KANKANI
SEBI HAS AMENDED THE CLAUSE 35B & 49 OF THE LISTING AGREEMENT FOR THE LISTED COMPANIES.
CLAUSE 35B HAS MANDATED THE E-VOTING FOR PASSING THE RESOLUTION
CLAUSE 49 DEALS WITH THE CORPORATE GOVERNANCE.
Presentation on formation of company (pakistan)Arshad Islam
The document outlines the steps and requirements for registering a new company in Pakistan. It discusses the key stages in company formation: promotion, incorporation, subscription, and commencement. It provides details on the legal documents required like the memorandum of association, articles of association, and documents needed for registration with the registrar including capital structure, director information, and prospectus. Once minimum share subscription levels are met and director shares are paid, a certificate of commencement can be obtained to legally operate the business. The Securities and Exchange Commission of Pakistan oversees company registration through regional Company Registration Offices.
The registration process for a company in India involves several steps. First, the company must get approval for its proposed name from the Registrar of Companies in the relevant state. Next, the company must file its Memorandum and Articles of Association with the ROC along with the requisite fees. Finally, once all documents are properly filed, the ROC will issue a Certificate of Incorporation, officially establishing the company. The process from filing until receiving the certificate can take one to two weeks. Additionally, companies must obtain necessary tax registrations like a Permanent Account Number.
The document provides an overview of Pakistani law and its sources. It discusses how Pakistani law is based on British common law and was influenced by the incorporation of Islamic Sharia law. The main sources of law in Pakistan include the constitution, statutes, common law, and Islamic legal sources like the Quran and Sunnah. The document also summarizes the Constitution of Pakistan from 1956 and 1973, outlining their key features. Finally, it discusses the corporate law situation in Pakistan, noting that companies are currently governed by the Companies Ordinance of 1984, which aims to protect investors and promote economic development.
The document summarizes the judicial system of Pakistan. It discusses the following key points:
1. The judicial system has evolved over time from Hindu, Muslim, and British rule and is now based on English common law mixed with Islamic law.
2. The system includes the Supreme Court, high courts, district and sessions courts, special tribunals, and family and juvenile courts.
3. Appointments of judges were reformed in 2010 to establish a judicial commission and parliamentary committee process in response to allegations of favoritism.
The document summarizes the key provisions of Section 498A of the Indian Penal Code, which deals with cruelty by a husband or relative of the husband towards a married woman. It discusses the mandate behind introducing Section 498A to strengthen anti-dowry laws and stop offenses of cruelty against married women. It also summarizes some important court judgments related to Section 498A and the Law Commission's recommendations to reform the law and make arrests and investigations more rigorous.
Corporate law in pakistan
Pakistan came into being, the Companies Act, 1913 was adopted.
In the year 1984, the President of Pakistan passed the Companies ordinance, 1984.
At then the Companies act 1913 was repealed.
Currently, companies ordinance, 1984 is the main law regarding companies and it regulates all matters relating to the companies.
514 sections and eight Schedules.
Later, time to time, different amendments have been made in it.
Growth of the Corporate Enterprises
Protection of Investors and Creditors
Promotion of investment and development of economy and matters arising out of above factors or connected therewith.
Main source of Company Law is the companies ordinance, 1984.
The Companies Rules, 1985. It provides guidance to follow the law.
Notifications and circulars, etc., issued by the Securities and Exchange Commissions of Pakistan (SECP) or the Federal Government.
The Case Laws of High Court and Supreme Court.
A company becomes an Artificial legal person and recognized by law as person.
It is not a natural person.
Does not have heart, mind, hands or feet but still recognized by law as a person that is why it is considered to be Artificial Legal Person.
Can purchase assets in its name,
Have liabilities in its name.
Sue or can be sued.
The company is said to be a separate and distinct entity.
But separate from whom?
It means that company is separate from its.
The liability Company and the liability of members are different.
If company is sued it does not mean member is sued.
Bank account of owner VS company
The members are the owners of the company.
But they don’t directly manage the company.
The members elect the directors who manage the company.
Directors acts independently from the members.
The members are not the agents & cannot bind the company in any contract.
Directors are the agents of the company and manage the company.
Directors are elected normally out of members but members other than directors are not part of management.
The document provides an overview of Pakistan's constitutional history from 1909 to 1973. It discusses several key acts and constitutions:
- The Minto-Marley Reforms of 1909 expanded legislative councils and gave Muslims separate representation.
- The Government of India Act of 1935 established a federal structure and provincial autonomy.
- The 1956 constitution established Pakistan as an Islamic republic with fundamental rights and a parliamentary system.
- The 1962 constitution established a powerful presidential system but centralized power in the presidency.
- The 1973 constitution returned to a parliamentary system with a ceremonial president, bicameral parliament, and protection of fundamental rights and Islamic provisions.
This document provides information about Askari Bank, including its vision, mission, core values, corporate philosophy, history, products and services, and Islamic banking division. It outlines Askari Bank's vision to be the leading private sector bank in Pakistan and its mission to deliver quality service through innovative technology. It also lists the bank's core values of commitment to customers, integrity for investors, fairness for regulators, teamwork for employees, and service to communities.
Askari Bank was incorporated in Pakistan in 1991 as a public limited company. It commenced banking operations in 1992 and is principally engaged in the business of banking. Since inception, the bank has focused on growth through improving service quality, investing in technology and people, and utilizing its extensive branch network. Corporate social responsibility is also an integral part of the bank's operations. The bank provides various banking products and services, including Askari Ijarah Bis Sayyarah, which is an Islamic car financing product that complies with Shariah law.
The document summarizes Pakistan's legal and judicial system. It outlines that the system stems from the British system used in India. The Supreme Court is the highest court with the Chief Justice appointed by the President. It has ultimate authority over law and constitution. Lower courts include provincial High Courts and district-level civil and criminal courts that handle related cases and appeals. The purpose of the legal system is to fairly interpret and enforce laws through orderly dispute resolution.
The document outlines the 12 step legislative procedure in Pakistan for passing a bill into law. It begins with introducing a bill in the National Assembly or Senate. It then goes through readings and debates in both houses, with opportunities for amendments. It can be referred to committees. If passed by both houses, the bill is sent to the President for assent to become an Act of Parliament. Key types of bills are also defined such as Government, Private Members, Constitution Amendment and Financial bills.
The document discusses planning machinery and processes in Pakistan. It outlines the evolution of planning agencies in Pakistan from the Development Board to the Planning Commission. It describes the Planning Commission's role in formulating national plans including annual, five-year, and long-term perspective plans. It also discusses the objectives of economic planning in Pakistan and the process of identifying and approving development projects. Finally, it notes some weaknesses in Pakistan's planning system and provides recommendations to strengthen economic planning and development.
Pakistan was founded in 1947 by Quaid-e-Azam Mohammad Ali Jinnah and emerged as an independent state on August 14th, 1947. It has a total area of 796,095 sq km and a population of over 167 million people. Pakistan is divided into 4 provinces: Sindh, Punjab, Khyber Pakhtunkhwa, and Balochistan. The country faces a governance crisis due to factors such as lack of competent leadership, political instability, corruption, weak institutions, fragile economy, terrorism, and nepotism. Key events that exacerbated the crisis include periods of martial law beginning in 1958 and the fall of Dhaka in 1971.
The document provides background on a partnership between the British Council and UN ESCAP to promote social enterprises in Pakistan. It discusses the objectives, methodology, and challenges of developing social enterprises in Pakistan. Specifically, it notes social enterprises have grown in Pakistan but face regulatory, policy, funding and cultural barriers. It proposes recommendations to address these challenges, including reforms to taxation, procurement policies, and increasing access to finance. Overall the document aims to inform policymakers on developing a strategy to better support the social enterprise sector in Pakistan.
Bank Al-Falah was established in 1997 as a commercial bank and provides various banking services through over 100 branches across Pakistan. The document discusses Bank Al-Falah's planning processes including goals, strategies and factors considered, as well as its organizational structure, leadership approaches, controls, ethics, culture and design. It also outlines the bank's history, management team, and approaches to planning, organizing, leading, controlling and other functions.
Salient feature of 1973 constitution of pakistanEHSAN KHAN
Salient feature of 1973 constitution of Pakistan
Constitution is the set of law and principals that determines the nature, functions and limits of the government and other institutions.
Financial ratios analysis project at Nestle and Engro Foodsraboz
Nestle and Engro Foods are analyzed in the document. Nestle has been operating in Pakistan since 1988 and has a wide range of food products. It aims to be the leading nutrition, health and wellness company in Pakistan. Engro Foods also offers various food products and was the first company to use bactofuge technology. Through financial analysis, it is found that while Nestle has been in business longer, Engro has grown efficiently and increased its share price significantly despite being newer. The document examines the companies' financial statements and ratios to compare their financial performance and positions.
The document discusses the independence of the judiciary in Pakistan. It notes that Pakistan operates a hierarchical court system with the Supreme Court and High Courts. While the constitution aims to separate powers, military dictators have undermined judicial independence. The 2007 Lawyers' Movement protested the suspension of the Chief Justice and helped reinstate an independent judiciary. However, recent high-profile cases involving Nawaz Sharif and Benazir Bhutto's assassination showed the judiciary still faces interference, so complete independence remains elusive.
The document discusses corporate governance under the Companies Act, 2017 in Pakistan. It defines corporate governance and outlines reasons for its importance, including corporate corruption cases and safeguarding public money. It describes Pakistan's corporate governance mechanisms including the Companies Act, Code of Corporate Governance, and Listed Companies Regulations. It also discusses types of companies, statutory officers like directors, CEO, CFO, and committees including the audit committee.
This document provides an overview of audit reports for three Pakistani textile mills - Gul Ahmed, Nishat Mills, and Sapphire Textile. It includes the independent auditors' reports and key details for each company. The auditors provide an opinion that the financial statements for each company present a true and fair view of the company's financial position and performance. They identify key audit matters such as stock valuation, borrowings, contingencies, and revenue recognition. The auditors are responsible for obtaining evidence to support their opinion on the financial statements.
The document provides an overview of the Insolvency and Bankruptcy Code 2016 in India. Some key points:
- The IBC 2016 consolidates existing insolvency-related laws in India into a single code to provide a uniform, comprehensive insolvency legislation.
- It introduces a time-bound insolvency resolution process for companies, limited liability partnerships, and individuals with the goal of maximizing value of assets.
- The code establishes new regulatory institutions like the Insolvency and Bankruptcy Board of India, Insolvency Professional Agencies, and Information Utilities to facilitate its implementation.
- Licensed Insolvency Professionals will manage insolvency resolution and liquid
The document discusses accounting standards and their formulation in India. It provides context on the need for harmonization of accounting policies and practices within a country and internationally. It describes the role of various standard setting bodies in India like the Accounting Standards Board and their objectives in formulating accounting standards. The document also explains the accounting standard setting process and lists the various accounting standards issued by the ASB.
The Code of Corporate Governance establishes rules for listed companies in Pakistan regarding their board of directors, financial reporting, auditing, and corporate ownership structure. It requires boards to include independent directors, sets qualifications for directors and financial officers, and mandates quarterly financial reporting, audit committees, and limits on auditor share ownership. The code aims to improve transparency, accountability, and protections for investors in Pakistani public companies.
Accounting standards provide guidelines for financial accounting and reporting. They aim to standardize diverse accounting policies, increase reliability of financial statements, and facilitate comparison. In India, the Accounting Standards Board issues accounting standards, called Accounting Standards (AS), which are now being converged with International Financial Reporting Standards (IFRS) called Indian Accounting Standards (Ind AS). A phased roadmap is being implemented from 2015-2017 for listed and large unlisted companies to adopt Ind AS. Adoption of standards aims to improve transparency and comparability of financial reporting.
The document provides an overview of the Draft Companies Bill of 2015 in Pakistan. It summarizes some of the key proposed amendments including expanding the definition of associated companies and officers, adding requirements for single member companies and legal advisors, expanding the duties of auditors, and restricting non-audit services that auditors can provide. It also compares some of the proposed amendments to requirements for auditors and their accountability in other jurisdictions like India and the US.
Lecture 1 Intro to financial Analysis.pptAliHadi319773
This document provides an introduction to financial statements and auditing. It covers the purpose and components of financial statements, including the balance sheet, income statement, statement of changes in equity, and cash flow statement. It discusses the objectives of an audit and regulatory requirements for auditing financial statements in Pakistan. It also outlines basic accounting principles like fair presentation, going concern, and accrual basis. Finally, it reviews key areas of the balance sheet like property and equipment, investments, loans and advances, and contingencies. The overall document provides a high-level overview of financial statements, auditing, and balance sheet accounts.
Introduction To Financial Statements And Auditimranbg1
The document provides an introduction to financial statements and the audit process. It defines financial statements as a structured representation of a company's financial position and performance that provides useful information to decision makers. The key components of financial statements are identified as the balance sheet, income statement, statement of cash flows, and notes. Regulatory requirements for preparing and auditing financial statements in Pakistan are outlined for different types of companies. The objectives and need for auditing financial statements are discussed. Important areas of the balance sheet like property, investments, loans, stock, and liabilities are also briefly covered.
Insight on Companies Bill 2012 and its impactSudheer Paidi
The document summarizes some of the key changes introduced by the Companies Bill 2012 which was passed by the Lok Sabha on December 18, 2012. Some major changes include restrictions on number of directorships a person can hold, mandatory rotation of auditors after a fixed period, introduction of secretarial standards and mandatory secretarial audit for listed companies, increased responsibilities of company secretaries, and provisions around corporate social responsibility. The bill aims to replace the 56 year old Companies Act and introduce greater transparency and investor protection norms.
The document provides an introduction to financial statements, why they are audited, and basic accounting principles. It discusses that financial statements are a structured representation of a company's financial position and performance that provide useful information to decision makers. It also notes that audits are required by regulations to independently evaluate the fairness of financial statements. Finally, it outlines some key accounting principles like fair presentation, going concern assumption, and accrual basis of accounting.
The Sarbanes-Oxley Act at 15 (EY Publication)Azhar Qureshi
The Sarbanes-Oxley Act of 2002 (SOX) established the Public Company Accounting Oversight Board (PCAOB) to oversee audits of public companies and improve accountability in financial reporting. SOX also strengthened corporate governance and financial disclosure. The PCAOB registers audit firms, inspects audits for compliance, and sets auditing standards. SOX has improved audit quality and increased transparency and oversight of both companies and auditors. While some provisions like internal control reporting have faced criticism, SOX overall increased investor confidence in US financial markets.
AZGARD NINE LIMITED, EXIDE PAKISTAN LIMITED, Ahmad Hassan (Private) l...Ammara Saleem
1. Ahmad Hassan Limited is a textile company located in Multan, Pakistan that manufactures and sells yarn and fabric. It has been operating since the late 20th century.
2. The company aims to sustain its reputation in domestic and international markets through producing quality yarn and fabric. It is a public limited company with a registered share capital of Rs. 200 million.
3. The financial statements for the year ended June 30, 2016 were prepared in accordance with approved accounting standards and give a true and fair view of the company's financial position and performance.
The document discusses accounting standards and Indian accounting standards (Ind AS). It provides background on the development of accounting standards and the standard setting process in India. The key points are:
1. The Accounting Standards Board (ASB) was established in 1977 to formulate accounting standards in India. It follows a process of drafting, public exposure, and approval to issue standards.
2. There are mandatory ICAI accounting standards and non-mandatory standards. Ind AS have been issued to converge with IFRS.
3. Applicability of accounting standards depends on the level of the entity - level I, II, or III. Level I companies must comply with all standards.
This document provides an overview of International Financial Reporting Standards (IFRS) and the roadmap for adoption of Indian Accounting Standards (Ind AS), which are based on IFRS. It discusses that IFRS are a set of principles-based standards for preparation of financial statements that promote transparency, accountability and efficiency. It outlines the phases for mandatory adoption of Ind AS for certain classes of companies in India between 2016-2017. It also discusses some opportunities and challenges for chartered accountants in training clients and adapting reporting systems for the transition to Ind AS.
The document discusses the requirements for annual returns under the Companies Act 2013. It notes that annual returns are consolidated reports submitted by companies to the Registrar of Companies each year after the AGM. They must include information such as the registered office, business activities, shareholding patterns, indebtedness, directors and other details. Companies meeting certain criteria must get the annual return certified by a practicing company secretary. It also compares the annual return provisions of the Companies Act 2013 to the previous Companies Act 1956.
This document discusses accounting standards and financial reporting. It begins with an introduction and overview of why financial reports are prepared according to standards. It then discusses the types of standards and frameworks that exist, including IFRS, AS (Accounting Standards in India), and US GAAP. It provides information on the standard setting bodies like IASB and FASB. It discusses the history and development of standards in India and other countries. It also addresses current requirements in India for adoption of Ind AS standards and compliance. The document aims to increase awareness of accounting standards and financial reporting requirements.
Project_Secretarial Audit-Tool for Corporate GovernanceCS Vikas Mehta
The document discusses secretarial audits for companies in India. It provides details on:
- What a secretarial audit is and its objectives of ensuring legal compliance and protecting stakeholder interests.
- The regulatory requirements for secretarial audits for listed companies and large public companies.
- The process of conducting secretarial audits, including examining documents, applicable laws, and reporting requirements.
- Qualification and disqualification criteria for secretarial auditors, who must be practicing company secretaries.
- Consequences for non-compliance with secretarial audit requirements, including penalties for companies and auditors.
- The importance of secretarial audits for boosting corporate compliance and governance standards in India
Similar to Autonomy and Independence of Audit in Company Laws of Pakistan (20)
Permissibility of blockchain-crypto currencies-crypto tokens-metaverse and di...Sayyid Mansoob Hasan
This document discusses the permissibility of blockchain technology, cryptocurrencies, crypto tokens, and digital assets from an Islamic perspective. It begins by outlining some of the challenges religious scholars face in evaluating new technologies due to disconnects between religious education and practical applications. The document then provides definitions of key terms and principles for determining what is permissible (halal) or impermissible (haram). Applying these principles, the document concludes that blockchain technology itself is not haram as it enables various solutions, while the permissibility of specific blockchain projects, cryptocurrencies, and tokens depends on their objectives and operations.
This video describes the future of the persons in Pakistan after 30-june-2019 who do not file income tax returns.
Links:
Website: www.mncglobal.com
Video: https://youtu.be/YscFnILZ8hM
YouTube Channel: https://www.youtube.com/channel/UCsHJIpOZhkSE9PvlyJMS5cw?view_as=subscriber
This video describes who should file income tax return in Pakistan under the Income Tax Ordinance, 2001.
Links:
Website: www.mncglobal.com
Video: https://youtu.be/EXYThkDDpUo
YouTube Channel: https://www.youtube.com/channel/UCsHJIpOZhkSE9PvlyJMS5cw?view_as=subscriber
This presentation was made in the program on "E-Commerce Business Registration and Taxation" organized by Pakistan E-Commerce Consortium and TCS Octara on 13-June-2019 in Karachi, Pakistan.
Keynote speech Artificial Intelligence disrupting financial industry-v-3Sayyid Mansoob Hasan
This presentation was made on an Awarenss Seminar on Artificial Intelligence Disrupting Financial Industry, held on 29-September-2018 at National Incubation Center, NED University Karachi, Pakistan.
This Book of Voice is a message of peace, prosperity and civilization for all human beings. It provides solution to the challenges of the contemporary world on the basis of equity and equality. It guides through the process of establishing a civilized society where all the people on the globe can live with peace with each other. It not only provides solution to the society globally but it also provides solution to the problems faced by an individual and also provides him the track for spiritual development. All are invited to read the Book of Voice for their own betterment and internal peace.
This Book of Voice is a message of peace, prosperity and civilization for all human beings. It provides solution to the challenges of the contemporary world on the basis of equity and equality. It guides through the process of establishing a civilized society where all the people on the globe can live with peace with each other. It not only provides solution to the society globally but it also provides solution to the problems faced by an individual and also provides him the track for spiritual development. All are invited to read the Book of Voice for their own betterment and internal peace.
This Book of Voice is a message of peace, prosperity and civilization for all human beings. It provides solution to the challenges of the contemporary world on the basis of equity and equality. It guides through the process of establishing a civilized society where all the people on the globe can live with peace with each other. It not only provides solution to the society globally but it also provides solution to the problems faced by an individual and also provides him the track for spiritual development. All are invited to read the Book of Voice for their own betterment and internal peace.
This Book of Voice is a message of peace, prosperity and civilization for all human beings. It provides solution to the challenges of the contemporary world on the basis of equity and equality. It guides through the process of establishing a civilized society where all the people on the globe can live with peace with each other. It not only provides solution to the society globally but it also provides solution to the problems faced by an individual and also provides him the track for spiritual development. All are invited to read the Book of Voice for their own betterment and internal peace.
This Book of Voice is a message of peace, prosperity and civilization for all human beings. It provides solution to the challenges of the contemporary world on the basis of equity and equality. It guides through the process of establishing a civilized society where all the people on the globe can live with peace with each other. It not only provides solution to the society globally but it also provides solution to the problems faced by an individual and also provides him the track for spiritual development. All are invited to read the Book of Voice for their own betterment and internal peace.
1) The document is a translated chapter from the Book of Voice about inventions. It discusses how all creatures can obtain what they make principled efforts to achieve through skills, knowledge, and research.
2) It asserts that avoiding the use of one's own inventions due to unrealistic theories is unwise, as all knowledge and inventions are manifestations of what was bestowed upon Adam by God.
3) The chapter encourages people to make use of God's blessings on earth and to give up destructive inventions, instead focusing on those that better humanity. It condemns shortsightedness and stresses that the series of inventions will continue until Judgment Day.
This Book of Voice is a message of peace, prosperity and civilization for all human beings. It provides solution to the challenges of the contemporary world on the basis of equity and equality. It guides through the process of establishing a civilized society where all the people on the globe can live with peace with each other. It not only provides solution to the society globally but it also provides solution to the problems faced by an individual and also provides him the track for spiritual development. All are invited to read the Book of Voice for their own betterment and internal peace.
This Book of Voice is a message of peace, prosperity and civilization for all human beings. It provides solution to the challenges of the contemporary world on the basis of equity and equality. It guides through the process of establishing a civilized society where all the people on the globe can live with peace with each other. It not only provides solution to the society globally but it also provides solution to the problems faced by an individual and also provides him the track for spiritual development. All are invited to read the Book of Voice for their own betterment and internal peace.
This Book of Voice is a message of peace, prosperity and civilization for all human beings. It provides solution to the challenges of the contemporary world on the basis of equity and equality. It guides through the process of establishing a civilized society where all the people on the globe can live with peace with each other. It not only provides solution to the society globally but it also provides solution to the problems faced by an individual and also provides him the track for spiritual development. All are invited to read the Book of Voice for their own betterment and internal peace.
This Book of Voice is a message of peace, prosperity and civilization for all human beings. It provides solution to the challenges of the contemporary world on the basis of equity and equality. It guides through the process of establishing a civilized society where all the people on the globe can live with peace with each other. It not only provides solution to the society globally but it also provides solution to the problems faced by an individual and also provides him the track for spiritual development. All are invited to read the Book of Voice for their own betterment and internal peace.
This Book of Voice is a message of peace, prosperity and civilization for all human beings. It provides solution to the challenges of the contemporary world on the basis of equity and equality. It guides through the process of establishing a civilized society where all the people on the globe can live with peace with each other. It not only provides solution to the society globally but it also provides solution to the problems faced by an individual and also provides him the track for spiritual development. All are invited to read the Book of Voice for their own betterment and internal peace.
This Book of Voice is a message of peace, prosperity and civilization for all human beings. It provides solution to the challenges of the contemporary world on the basis of equity and equality. It guides through the process of establishing a civilized society where all the people on the globe can live with peace with each other. It not only provides solution to the society globally but it also provides solution to the problems faced by an individual and also provides him the track for spiritual development. All are invited to read the Book of Voice for their own betterment and internal peace.
This Book of Voice is a message of peace, prosperity and civilization for all human beings. It provides solution to the challenges of the contemporary world on the basis of equity and equality. It guides through the process of establishing a civilized society where all the people on the globe can live with peace with each other. It not only provides solution to the society globally but it also provides solution to the problems faced by an individual and also provides him the track for spiritual development. All are invited to read the Book of Voice for their own betterment and internal peace.
This Book of Voice is a message of peace, prosperity and civilization for all human beings. It provides solution to the challenges of the contemporary world on the basis of equity and equality. It guides through the process of establishing a civilized society where all the people on the globe can live with peace with each other. It not only provides solution to the society globally but it also provides solution to the problems faced by an individual and also provides him the track for spiritual development. All are invited to read the Book of Voice for their own betterment and internal peace.
Guide on the use of Artificial Intelligence-based tools by lawyers and law fi...Massimo Talia
This guide aims to provide information on how lawyers will be able to use the opportunities provided by AI tools and how such tools could help the business processes of small firms. Its objective is to provide lawyers with some background to understand what they can and cannot realistically expect from these products. This guide aims to give a reference point for small law practices in the EU
against which they can evaluate those classes of AI applications that are probably the most relevant for them.
This document briefly explains the June compliance calendar 2024 with income tax returns, PF, ESI, and important due dates, forms to be filled out, periods, and who should file them?.
Business law for the students of undergraduate level. The presentation contains the summary of all the chapters under the syllabus of State University, Contract Act, Sale of Goods Act, Negotiable Instrument Act, Partnership Act, Limited Liability Act, Consumer Protection Act.
Sangyun Lee, 'Why Korea's Merger Control Occasionally Fails: A Public Choice ...Sangyun Lee
Presentation slides for a session held on June 4, 2024, at Kyoto University. This presentation is based on the presenter’s recent paper, coauthored with Hwang Lee, Professor, Korea University, with the same title, published in the Journal of Business Administration & Law, Volume 34, No. 2 (April 2024). The paper, written in Korean, is available at <https://shorturl.at/GCWcI>.
What are the common challenges faced by women lawyers working in the legal pr...lawyersonia
The legal profession, which has historically been male-dominated, has experienced a significant increase in the number of women entering the field over the past few decades. Despite this progress, women lawyers continue to encounter various challenges as they strive for top positions.
Matthew Professional CV experienced Government LiaisonMattGardner52
As an experienced Government Liaison, I have demonstrated expertise in Corporate Governance. My skill set includes senior-level management in Contract Management, Legal Support, and Diplomatic Relations. I have also gained proficiency as a Corporate Liaison, utilizing my strong background in accounting, finance, and legal, with a Bachelor's degree (B.A.) from California State University. My Administrative Skills further strengthen my ability to contribute to the growth and success of any organization.
Lifting the Corporate Veil. Power Point Presentationseri bangash
"Lifting the Corporate Veil" is a legal concept that refers to the judicial act of disregarding the separate legal personality of a corporation or limited liability company (LLC). Normally, a corporation is considered a legal entity separate from its shareholders or members, meaning that the personal assets of shareholders or members are protected from the liabilities of the corporation. However, there are certain situations where courts may decide to "pierce" or "lift" the corporate veil, holding shareholders or members personally liable for the debts or actions of the corporation.
Here are some common scenarios in which courts might lift the corporate veil:
Fraud or Illegality: If shareholders or members use the corporate structure to perpetrate fraud, evade legal obligations, or engage in illegal activities, courts may disregard the corporate entity and hold those individuals personally liable.
Undercapitalization: If a corporation is formed with insufficient capital to conduct its intended business and meet its foreseeable liabilities, and this lack of capitalization results in harm to creditors or other parties, courts may lift the corporate veil to hold shareholders or members liable.
Failure to Observe Corporate Formalities: Corporations and LLCs are required to observe certain formalities, such as holding regular meetings, maintaining separate financial records, and avoiding commingling of personal and corporate assets. If these formalities are not observed and the corporate structure is used as a mere façade, courts may disregard the corporate entity.
Alter Ego: If there is such a unity of interest and ownership between the corporation and its shareholders or members that the separate personalities of the corporation and the individuals no longer exist, courts may treat the corporation as the alter ego of its owners and hold them personally liable.
Group Enterprises: In some cases, where multiple corporations are closely related or form part of a single economic unit, courts may pierce the corporate veil to achieve equity, particularly if one corporation's actions harm creditors or other stakeholders and the corporate structure is being used to shield culpable parties from liability.
Synopsis On Annual General Meeting/Extra Ordinary General Meeting With Ordinary And Special Businesses And Ordinary And Special Resolutions with Companies (Postal Ballot) Regulations, 2018
सुप्रीम कोर्ट ने यह भी माना था कि मजिस्ट्रेट का यह कर्तव्य है कि वह सुनिश्चित करे कि अधिकारी पीएमएलए के तहत निर्धारित प्रक्रिया के साथ-साथ संवैधानिक सुरक्षा उपायों का भी उचित रूप से पालन करें।
Genocide in International Criminal Law.pptxMasoudZamani13
Excited to share insights from my recent presentation on genocide! 💡 In light of ongoing debates, it's crucial to delve into the nuances of this grave crime.
3. SAYYID MANSOOB HASAN
MANSOOB & CO.
STAKEHOLDERS CONFERENCE ON
DRAFT COMPANIES BILL, 2016
The Evolution of Company Laws
Companies Act,
1913
Companies Ordinance,
1984
Draft Companies Bill,
2016
Based on British
Companies
(Consolidation) Act,
1908
Mostly based on
British
Companies Act, 1980
6. SAYYID MANSOOB HASAN
MANSOOB & CO.
STAKEHOLDERS CONFERENCE ON
DRAFT COMPANIES BILL, 2016
Who appoints auditors? 1
The Companies Act, 1913
• No qualification of auditor defined
• No procedure for appointment of auditor defined
• No powers and duties of auditors defined
• No format of audit report defined
7. SAYYID MANSOOB HASAN
MANSOOB & CO.
STAKEHOLDERS CONFERENCE ON
DRAFT COMPANIES BILL, 2016
Who appoints auditors? 2
The Companies Ordinance, 1984
Section 252: Appointment and remuneration of auditors.
• (1) Every company shall at each annual general meeting appoint an
auditor or auditors to hold office from the conclusion of that meeting
until the conclusion of the next annual general meeting.
• (3) The first auditor or auditors of a company shall be appointed by
the directors within sixty days of the date of incorporation of the
company; and the auditor or auditors so appointed shall hold office
until the conclusion of the first annual general meeting:
8. SAYYID MANSOOB HASAN
MANSOOB & CO.
STAKEHOLDERS CONFERENCE ON
DRAFT COMPANIES BILL, 2016
Who appoints auditors? 3
• Procedure as per Code of Corporate Governance
Audit Committee Board of Directors
Annual General
Meeting
9. SAYYID MANSOOB HASAN
MANSOOB & CO.
STAKEHOLDERS CONFERENCE ON
DRAFT COMPANIES BILL, 2016
Who appoints auditors? 4
The Draft Companies Bill, 2016
Section 246. Appointment, removal and fee of auditors.-
• (1) The first auditor or auditors of a company shall be appointed by the board
within three months of the date of incorporation of the company; and the auditor
or auditors so appointed shall retire on the conclusion of the first annual general
meeting.
• (2) Subject to the provisions of sub-section (3), the subsequent auditor or
Auditors shall be appointed by the company in the annual general meeting on
the recommendation of the board
• (3) A member or members having not less than ten percent shareholding of the
company shall also be entitled to propose any auditor or auditors for
appointment whose consent has been obtained by him and a notice in this regard
has been given to the company not less than seven days before the date of the
annual general meeting.
10. SAYYID MANSOOB HASAN
MANSOOB & CO.
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Who appoints auditors? 5
• Procedure as per Code of Corporate Governance
Audit Committee Board of Directors
Annual General
Meeting
Shareholder
=> 10%
12. SAYYID MANSOOB HASAN
MANSOOB & CO.
STAKEHOLDERS CONFERENCE ON
DRAFT COMPANIES BILL, 2016
What Rights do Auditors have? 1
The Companies Act, 1913
• No rights of auditors defined
13. SAYYID MANSOOB HASAN
MANSOOB & CO.
STAKEHOLDERS CONFERENCE ON
DRAFT COMPANIES BILL, 2016
What Rights do Auditors have? 2
The Companies Ordinance, 1984
Section 255:
• Every auditor of a company shall have a right of access at all times to
the books, papers, accounts and vouchers of the company, whether
kept at the registered office of the company or elsewhere, and shall
be entitled to require from the company and the directors and other
officers of the company such information and explanation as he
thinks necessary for the performance of the duties of the auditors.
14. SAYYID MANSOOB HASAN
MANSOOB & CO.
STAKEHOLDERS CONFERENCE ON
DRAFT COMPANIES BILL, 2016
What Rights do Auditors have? 3
The Draft Companies Bill, 2016
Section 248. Auditors’ right to information.-
• (1) An auditor of a company has a right,—
• (a) of access at all times to the company’s books, accounts and vouchers (in whatever form
they are held); and The draft Companies Bill, 2016 20-Sep-2016 Page 153 of 301
• (b) of access to such copies of, an extracts from, the books and accounts of the branch as
have been transmitted to the principal office of the company;
• (c) to require any of the following persons to provide him with such information or
explanations as he thinks necessary for the performance of his duties as auditor,- (i) any
director, officer or employee of the company; (ii) any person holding or accountable for any
of the company’s books, accounts or vouchers; (iii) any subsidiary undertaking of the
company; (iv) any officer, employee or auditor of any such subsidiary undertaking of the
company or any person holding or accountable for any books, accounts or vouchers of any
such subsidiary undertaking of the company.
16. SAYYID MANSOOB HASAN
MANSOOB & CO.
STAKEHOLDERS CONFERENCE ON
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What do Auditors have to Report? 1
The Companies Act, 1913
• No duties of auditors defined
• No format of audit report defined
17. SAYYID MANSOOB HASAN
MANSOOB & CO.
STAKEHOLDERS CONFERENCE ON
DRAFT COMPANIES BILL, 2016
What do Auditors have to Report? 2
The Companies Ordinance, 1984
255. Powers and duties of auditors. –
• (3) The auditors shall make a report to the members of the company on
the accounts and books of accounts of the company…..
• (c) whether or not in their opinion the balance-sheet and profit and loss account or
the income and expenditure account have been drawn up in conformity with this
Ordinance and are in agreement with the books of accounts;
• (d) whether or not in their opinion and to the best of their information and according
to the explanations given to them, the said accounts give the information required
by this Ordinance in the manner so required and give a true and fair view
• (e) whether or not in their opinion- (i) the expenditure incurred during the year was
for the purpose of the company’s business; and (ii) the business conducted,
investments made and expenditure incurred during the year were in accordance
with the objects of the company
18. SAYYID MANSOOB HASAN
MANSOOB & CO.
STAKEHOLDERS CONFERENCE ON
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What do Auditors have to Report? 3
The aftermath of Worldcom and Enron. “Disclaimer & Limitation of
Scope”.
• Paras added in the Audit Report:
• It is the responsibility of the Company’s management to establish and
maintain a system of internal control, and prepare and present the above said
statements in conformity with the approved accounting standards and the
requirements of the Companies Ordinance, 1984. Our responsibility is to
express an opinion on these statements based on our audit.
• We conducted our audit in accordance with the auditing standards as
applicable in Pakistan. ……..
19. SAYYID MANSOOB HASAN
MANSOOB & CO.
STAKEHOLDERS CONFERENCE ON
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What do Auditors have to Report? 4
The Draft Companies Bill, 2016
Section 249. Duties of auditor.
• (2) A company’s auditor shall conduct the audit and prepare his report in compliance
with the requirements of International Standards on Auditing as adopted by the
Institute of Chartered Accountants of Pakistan.
• (b) whether the company’s financial statements are in agreement with the accounting
records and returns.
• (c) whether or not in their opinion the statement of financial position and profit and loss
account and other comprehensive income or the income and expenditure account and
the cash flows have been drawn up in conformity with the requirements of accounting
and reporting standards as notified under this Act and are in agreement with the books
of accounts and returns..
• (e) whether or not in their opinion,— (i) investments made, expenditure incurred and
guarantees extended, during the year, were for the purpose of company’s business;
20. SAYYID MANSOOB HASAN
MANSOOB & CO.
STAKEHOLDERS CONFERENCE ON
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What do Auditors have to Report? 5
The Indian Companies Act, 2013
• Section 143 (1)
• (b) whether transactions of the company which are represented merely by
book entries are prejudicial to the interests of the company;
• (c) where the company not being an investment company or a banking
company, whether so much of the assets of the company as consist of shares,
debentures and other securities have been sold at a price less than that at
which they were purchased by the company;
• (e) whether personal expenses have been charged to revenue account;
21. SAYYID MANSOOB HASAN
MANSOOB & CO.
STAKEHOLDERS CONFERENCE ON
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What do Auditors have to Report? 6
The Indian Companies Act, 2013
• Section 143 (3) (f)
• The observations or comments of the auditors on financial transactions or
matters which have any adverse effect on the functioning of the company;
• Section 143 (12)
• Notwithstanding anything contained in this section, if an auditor of a
company, in the course of the performance of his duties as auditor, has reason
to believe that an offence involving fraud is being or has been committed
against the company by officers or employees of the company, he shall
immediately report the matter to the Central Government within such time
and in such manner as may be prescribed.
22. SAYYID MANSOOB HASAN
MANSOOB & CO.
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What do Auditors have to Report? 7
Responsibility of Auditors in USA
• In USA the new fraud standard, Statement on Auditing Standards No.
99, Consideration of Fraud in a Financial Statement Audit, is the
cornerstone of the AICPA’s comprehensive antifraud and corporate
responsibility program.
23. SAYYID MANSOOB HASAN
MANSOOB & CO.
STAKEHOLDERS CONFERENCE ON
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What do Auditors have to Report? 8
International Standard on Auditing 240 the Auditor’s Responsibilities
Relating to Fraud in an Audit of Financial Statements
• Para 5: An auditor conducting an audit in accordance with ISAs is
responsible for obtaining reasonable assurance that the financial
statements taken as a whole are free from material misstatement,
whether caused by fraud or error…
24. SAYYID MANSOOB HASAN
MANSOOB & CO.
STAKEHOLDERS CONFERENCE ON
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What do Auditors have to Report? 9
IFAC’s New Audit Report
• More detailed more in-depth audit report
• Requires management audit knowledge and skills to execute and
report audits
• Failure of ICAP to develop a draft report, waiting for ICAEW, PWC,
KPMG, etc.
26. SAYYID MANSOOB HASAN
MANSOOB & CO.
STAKEHOLDERS CONFERENCE ON
DRAFT COMPANIES BILL, 2016
Auditors at the AGM 1
The Companies Act, 1913
Section 131. Annual balance-sheet:-
(2) The balance-sheet shall be audited by the auditor of the company
as hereinafter provided, and the auditor's report shall be attached
thereto, or there shall be inserted at the foot thereof a reference to the
report, and the report shall be read before the company in general
meeting and shall be open to inspection by any member of the
company.
27. SAYYID MANSOOB HASAN
MANSOOB & CO.
STAKEHOLDERS CONFERENCE ON
DRAFT COMPANIES BILL, 2016
Auditors at the AGM 2
The Companies Ordinance, 1984
Section 255. Powers and duties of auditors. –
• (6) The auditor of a company shall be entitled to attend any general
meeting of the company, and to receive all notices of, and any
communications relating to, any general meeting which any member of the
company is entitled to receive, and to be heard at any general meeting
which he attends on any part of the business which concerns him as
auditor:
• Provided that, in the case of a listed company, the auditor or a person
authorized by him in writing shall be present in the general meeting in
which the balance-sheet and profit and loss account and the auditor’s
report are to be considered.
28. SAYYID MANSOOB HASAN
MANSOOB & CO.
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Auditors at the AGM 3
The Draft Companies Bill, 2016
Section 249. Duties of auditor.-
• (9) The auditor of a company shall be entitled to attend any general
meeting of the company, and to receive all notices of, and any
communications relating to, any general meeting which any member of the
company is entitled to receive, and to be heard at any general meeting
which he attends on any part of the business which concerns him as
auditor:
• Provided that, in the case of a listed company, the auditor or a person
authorised by him in writing shall be present in the general meeting in
which the financial statements and the auditor’s report are to be
considered.
30. SAYYID MANSOOB HASAN
MANSOOB & CO.
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Who the auditors report to? 1
The Companies Act, 1913
Section 131. Annual balance-sheet:-
(2) The balance-sheet shall be audited by the auditor of the company
…………., and the report shall be read before the company in general
meeting and shall be open to inspection by any member of the
company.
31. SAYYID MANSOOB HASAN
MANSOOB & CO.
STAKEHOLDERS CONFERENCE ON
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Who the auditors report to? 2
The Companies Ordinance, 1984
Section 255. Powers and duties of auditors. –
• (3) The auditors shall make a report to the members of the
company…
• 256. Reading and inspection of auditor’s report. - The auditor’s
report shall be read before the company in general meeting
32. SAYYID MANSOOB HASAN
MANSOOB & CO.
STAKEHOLDERS CONFERENCE ON
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Who the auditors report to? 3
The Draft Companies Bill, 2016
Section 249. Duties of auditor.-
• (4) The auditor shall make out a report to the members of the
company…
• Reading of Audit Report at the AGM – Gone Missing
33. SAYYID MANSOOB HASAN
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Questions
• How many times do you see auditors in AGMs?
• Are the auditors available to reply to queries of members?
• What actually happens at the AGM?
36. SAYYID MANSOOB HASAN
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Appointment of auditors – the reality
• Appointment in General Meeting
• Recommended by Board upon recommendation by Audit Committee
• Audit Committee mostly comprise of Board Members
• Board is elected by majority of shareholders
• No or rare representation of minority shareholders
37. SAYYID MANSOOB HASAN
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Who the auditors really work for?
• Auditors do not work for the company
• Auditors do not work for the members of the company
• They only work for their “Fee”
• Frauds and mismanagement are mostly committed by the board
• The “Fee” and “Out of Pocket Expenses” are determined by the
board and awarding “Other Assignments” is also determined by the
board
• So where is autonomy and independence?
39. SAYYID MANSOOB HASAN
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DRAFT COMPANIES BILL, 2016
The Audit and Audit Report
• Audit is an annual “Ritual”
• The auditors focus is mostly on compliance of international standards
on accounting, reporting and audit (limited application in Pakistan)
• They do not report on mismanagement
• They do not report on frauds or leakages of funds
• The word “Audit” is “Misfit”
• The audit report is merely “An Accounting Compliance Report” and
so it should be called
41. SAYYID MANSOOB HASAN
MANSOOB & CO.
STAKEHOLDERS CONFERENCE ON
DRAFT COMPANIES BILL, 2016
Recommendations
• Mechanism for appointment of auditors should be made more
transparent and more independent of the majority shareholders.
• Since one of the main purpose of corporate laws and related
regulations is to safeguard public money therefore reporting on fraud
and mismanagement should be made integral part of audit report.
• Auditors should have powers and mechanism to report significant
matters including fraud and mismanagement to SECP directly.