Production & sale of sugar: Companies classified within category of non-listed company

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has classified all companies engaged in production and sale of sugar within the category of Public Interest Company (PIC) under the classification criteria of companies.

The SECP has issued SRO 614 (I)/2020 here on Thursday to amend Third schedule of the Companies Act, 2017.

Third schedule of the Companies Act, 2017 deals with the classification of the companies. Within this category, three types of companies cover including Public Interest Company (PIC); Large Sized Company (LSC) and Medium Sized Company (MSC).

Within the category of Public Interest Company (PIC), the PIC is further divided into two types i.e. Listed Company and Non-listed Company.

The SECP has classified all companies engaged in production and sale of sugar within this category of Non-listed Company. The relevant schedule to deal with these companies is the Fifth Schedule of the Companies Act.

For the non-listed companies the applicable Accounting Framework would be International Financial Reporting Standards for all companies engaged in production and sale of sugar under Fifth Schedule of the Companies Act.

According to the SECP, the classification of a company shall be based on the previous year's audited financial statements. The classification of a company can be changed where it does not fall under the previous criteria for two consecutive years. The number of employees means the average number of persons employed by a company in that financial year calculated on monthly basis.