Corporate Laws (Specialised Institutions Laws 1)

Banking Companies Ordinance, 1962

SYLLABUS
Banking Companies Ordinance, 1962 Sections pertaining to audit and accounts, mainly
sections 34 to 38 of the Banking Companies Ordinance, 1962
Page | 1

ACCOUNTS & BALANCE SHEET [34]

Applies to:
Scope
Balance
sheet date
Format
SBP
powers
Signing
off

Banking company incorporated

in Pakistan.
All business transacted by it.
On expiry of each calendar year.

Banking company incorporated

outside Pakistan.
All business transacted in Pakistan.
On expiry of each calendar year.

2nd schedule or as near thereto.

May amend 2nd schedule after at
least 15 days notice in official
gazette.
Manager or principal officer &
Atleast 03 directors if more than 03
directors, otherwise all directors

2nd schedule or as near thereto.

May amend 2nd schedule after at
least 15 days notice in official
gazette.
Manager or agent of principal officer
& Officer next in seniority to the
manager or agent.

AUDIT [35]
Qualification of auditors
Term of auditors
Audit guidelines
Powers of auditors
Additional contents
auditors report

Qualified under CA Ordinance, 1961 for auditor of companies.

On SBP panel.
03 years.
Not to be removed without prior approval of SBP.
SBP may prescribe from time to time.
Auditor shall be bound to follow.
Auditor shall have all the powers and duties under CO 1984.
of Whether or not:
(a) Information and explanation satisfactory.
(b) Transactions within powers of banking company.
(c) Branch return adequate for audit.
(d) Profit and loss shows true balance of profit or loss.
(e) Any other matter for notice of shareholders.

SUBMISSION OF RETURNS [36]

Statements to be filed
Submitted to
Time frame

Financial statements & auditors report approved by AGM

SBP
03 months of financial year close.
SBP may extend upto 03 months in special circumstances.
financedoctors@gmail.com (www.financedoctors.net)

ICAP Module E

FILING OF FINANCIAL STATEMENTS TO REGISTRAR [37]

Applies to:
Number of copies
Page | 2 Time of filing
Relevance with CO1984

Private company
COMPULSORY
Other
OPTIONAL
03 (three)
Same time when returns u/s 36 are filed to SBP
Submission of copies under this section is considered fulfilling
the requirements of CO 1984.

DISPLAY OF LATEST AUDITED FINANCIAL STATEMENTS [38]

Applies to:
Place of display
From when
Until

Banking companies incorporated outside Pakistan

Principal office and every branch in Pakistan at conspicuous
place
Not later than 1st Monday in August
Replaced by subsequent financial statements

ACCOUNTING PROVISIONS OF THIS ORDINANCE [39]

These are NOT applied retrospectively.

INSPECTION OF ACCOUNTS [40]

Who inspects
Time of inspection
Scope of inspection
Report

Officer appointed by SBP

At any time
Or when directed by FG
Books of accounts of any banking company
It is submitted to FG

MISCELLANEOUS
2ND SCHEDULE TO ORDINANCE
20% of profit after tax must be transferred to statutory reserve.
MANNER OF PUBLICATION OF FINANCIAL STATEMENTS
Within 03 months of financial year close.
In newspapers having circulation in place of its principal office
MERGER
In case of merger, SBP shall have all powers which the Court has under CO1984.

I
Kashif Adeel