Banking Ordinance Notes
2
Corporate Laws (Specialised Institutions Laws 1) [email protected] (www.financedoctors.net) Page | 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 ACCOUNTS & BALANCE SHEET [34] Applies to: Banking company incorporated in Pakistan. Banking company incorporated outside Pakistan. Scope All business transacted by it. All business transacted in Pakistan. Balance sheet date On expiry of each calendar year. On expiry of each calendar year. Format 2 nd schedule or as near thereto. 2 nd schedule or as near thereto. SBP powers May amend 2 nd schedule after at least 15 days notice in official gazette. May amend 2 nd schedule after at least 15 days notice in official gazette. Signing off Manager or principal officer & Atleast 03 directors if more than 03 directors, otherwise all directors Manager or agent of principal officer & Officer next in seniority to the manager or agent. AUDIT [35] Qualification of auditors Qualified under CA Ordinance, 1961 for auditor of companies. On SBP panel. Term of auditors 03 years. Not to be removed without prior approval of SBP. Audit guidelines SBP may prescribe from time to time. Auditor shall be bound to follow. Powers of auditors Auditor shall have all the powers and duties under CO 1984. Additional contents of auditors’ report 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 Financial statements & auditor’s report approved by AGM Submitted to SBP Time frame 03 months of financial year close. SBP may extend upto 03 months in special circumstances.
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Transcript of Banking Ordinance Notes
Corporate Laws (Specialised Institutions Laws 1)
[email protected] (www.financedoctors.net)
Page | 1
Banking Companies Ordinance, 1962SYLLABUSBanking Companies Ordinance, 1962 – Sections pertaining to audit and accounts, mainlysections 34 to 38 of the Banking Companies Ordinance, 1962
ACCOUNTS & BALANCE SHEET [34]
Applies to: Banking company incorporatedin Pakistan.
Banking company incorporatedoutside Pakistan.
Scope All business transacted by it. All business transacted in Pakistan.Balancesheet date
On expiry of each calendar year. On expiry of each calendar year.
Format 2nd schedule or as near thereto. 2nd schedule or as near thereto.
SBPpowers
May amend 2nd schedule after atleast 15 days notice in officialgazette.
May amend 2nd schedule after atleast 15 days notice in officialgazette.
Signingoff
Manager or principal officer &Atleast 03 directors if more than 03directors, otherwise all directors
Manager or agent of principal officer& Officer next in seniority to themanager or agent.
AUDIT [35]
Qualification of auditors Qualified under CA Ordinance, 1961 for auditor of companies.On SBP panel.
Term of auditors 03 years.Not to be removed without prior approval of SBP.
Audit guidelines SBP may prescribe from time to time.Auditor shall be bound to follow.
Powers of auditors Auditor shall have all the powers and duties under CO 1984.Additional contents ofauditors’ report
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 Financial statements & auditor’s report approved by AGMSubmitted to SBPTime frame 03 months of financial year close.
SBP may extend upto 03 months in special circumstances.
ICAP Module E
Kashif Adeel
Page | 2
FILING OF FINANCIAL STATEMENTS TO REGISTRAR [37]
Applies to: Private company COMPULSORYOther OPTIONAL
Number of copies 03 (three)Time of filing Same time when returns u/s 36 are filed to SBPRelevance with CO1984 Submission of copies under this section is considered fulfilling
the requirements of CO 1984.
DISPLAY OF LATEST AUDITED FINANCIAL STATEMENTS [38]
Applies to: Banking companies incorporated outside PakistanPlace of display Principal office and every branch in Pakistan at conspicuous
placeFrom when Not later than 1st Monday in AugustUntil Replaced by subsequent financial statements
ACCOUNTING PROVISIONS OF THIS ORDINANCE [39]
These are NOT applied retrospectively.
INSPECTION OF ACCOUNTS [40]
Who inspects Officer appointed by SBPTime of inspection At any time
Or when directed by FGScope of inspection Books of accounts of any banking companyReport It is submitted to FG
MISCELLANEOUS
2ND SCHEDULE TO ORDINANCE20% of profit after tax must be transferred to statutory reserve.
MANNER OF PUBLICATION OF FINANCIAL STATEMENTSWithin 03 months of financial year close.In newspapers having circulation in place of its principal office
MERGERIn case of merger, SBP shall have all powers which the Court has under CO1984.
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