Defaulter Hascol Non-Compliant with PSX Rules

The Pakistan Stock Exchange (PSX) informed investors in a public notice on Monday that Hascol Petroleum Limited (PSX: HASCOL) has failed to hold its annual general meeting and has not submitted its annual audited financial statements for the calendar year ending on December 31, 2022. Explaining the breach and its implications, PSX said, “Upon placement of such company on the Defaulters’ Segment, the Exchange shall only initiate actions under Regulation 5.11.2(a) and 5.11.2(b). However. if such company fails to hold its Annual General Meeting for two consecutive years, trading in shares of the company shall be suspended by the Exchange and the company shall be given 90 days to rectify the non-compliance, failing which, the Exchange shall initiate further actions against the company commencing from Regulation 5.11.2(e)”. HASCOL’s shares are already traded in the defaulters’ segment due to non-compliance with other rules pertaining to its audit profile. The company has been riddled with issues since 2018 mostly because of fabricating financial accounting entries. Hascol has been in negotiations with all lenders to restructure its entire debt of Rs. 54 billion, aiming to settle the full amount to the satisfaction of lenders. It also wants creditor approval for restoring the company through “restructuring/rescheduling, settlement, and repayment” of financial obligations. In any case, the PSX notice spells bad fortune for the company in the coming few months. At the time of filing, the company’s scrip at the bourse was Rs. 4.97, down 4.79 percent or Rs. 0.25 with a turnover of 3,849,500 shares on Tuesday.