SECP has not published its own consolidated, up-to-date PDF of this Schedule. The text below is reconstructed on this site by taking the last text SECP did consolidate (which already incorporated S.R.O. 1169(I)/2017 and S.R.O. 888(I)/2019) and applying the two further 2024 amendments on top of it: S.R.O. 1278(I)/2024 (inserting the new Item VII on Shariah-related disclosures) and S.R.O. 1511(I)/2024 (omitting the old sub-clause 10, superseded by Item VII). Verify against the source notifications linked below before relying on this for a filing.
Sources: base consolidated text · S.R.O. 888(I)/2019 · S.R.O. 1278(I)/2024 · S.R.O. 1511(I)/2024.
The Fourth Schedule (see https://www.corporate-law.masss.com.pk/section/section-225-contents-of-financial-statements/) sets the disclosures listed companies and their subsidiaries must make in their financial statements, in addition to what International Financial Reporting Standards themselves require.
Part I — General Requirements
I. All listed companies and their subsidiaries follow the International Financial Reporting Standards notified in the official Gazette by the Commission under Section 225.
II. These disclosure requirements are additional to what IFRS itself prescribes, and are made in the notes to the accounts unless specifically required otherwise.
III. Beyond what the Act and this Schedule expressly require, any further information necessary to ensure the required disclosure is not misleading must also be added.
IV. Definitions used in this Schedule — (A) “capital reserve” includes the share premium account, a reserve created under any other law, a reserve arising from a scheme of arrangement, profit prior to incorporation, and any other reserve not regarded as free for dividend distribution; (B) “executive” means an employee (other than the chief executive and directors) whose basic salary exceeds Rs. 1,200,000 in a financial year; (C) “revenue reserve” means a reserve normally available for distribution through the profit and loss account, including general reserves and other specific reserves created out of profit, and un-appropriated or accumulated profits of previous years.
V. Any word or expression used here but not defined in the Act has the meaning IFRS gives it.
VI. The following shall be disclosed in the financial statements:
1. General information about the company: (i) geographical location and address of all business units including mills/plant; (ii) particulars of the company’s immovable fixed assets, including location and area of land; (iii) the capacity of an industrial unit, actual production, and the reasons for any shortfall; (iv) the number of persons employed as at the financial statement date and the average number during the year; (v) the names of associated companies, related parties, or undertakings the company transacted or had agreements/arrangements with during the year, with the basis of the relationship (common directorship, percentage shareholding) — using the IFRS definition of “related party.”
2. For associated companies, subsidiaries, joint ventures, or holding companies incorporated outside Pakistan that the company transacted or had agreements/arrangements with during the year: (i) name of the undertaking and country of incorporation; (ii) basis of association; and (iii) aggregate percentage shareholding, including shareholding held through other companies/entities. (Paragraphs (iv)-(vi) — registered address and related detail — were omitted by S.R.O. 888(I)/2019.)
3. The general nature of any credit facility available to the company under a contract (other than ordinary trade credit) that was not availed of at the statement-of-financial-position date.
4. and 5. (Clauses deleted.)
6. In financial statements issued after an initial or secondary public offering of securities, or issuance of a debt instrument, implementation of the plans disclosed in the prospectus/offering document for utilising the proceeds raised, until those plans are fully implemented.
7. (Clause deleted.)
8. Where the company has given loans/advances, or made short- or long-term investments, in foreign companies or undertakings: (i) name of the company/undertaking and its jurisdiction; (ii) name and address of the investee company’s beneficial owner, if any; (iii) amount of the loan/investment (local and foreign currency); (iv) terms, conditions, and period of the loan/advance/investment; (v) amount of return received; (vi) details of litigation against the investee company in the foreign jurisdiction; (vii) any default/breach relating to the foreign loan or investment; and (viii) gain or loss on disposal of foreign investments.
9. Where the company has export sales, in respect of outstanding trade debts: (i) name of the company/undertaking, where a related party; and (ii) name of defaulting parties, relationship (if any), and the default amount. (The remaining original paragraphs were omitted by S.R.O. 888(I)/2019.)
10. Omitted by S.R.O. 1511(I)/2024 (19 September 2024) — the earlier Shariah-compliant-company disclosure list that stood here is superseded by the broader Item VII below, inserted a month earlier by S.R.O. 1278(I)/2024.
VII. Shariah-related disclosures (inserted by S.R.O. 1278(I)/2024, 15 August 2024)
Every listed company and its subsidiary that is not engaged in Shariah non-permissible business activities as its core business must disclose the following in its standalone and consolidated financial statements (per Section 228 for the consolidated statements), as separate disclosures in a note cross-referenced with the relevant notes:
Statement of financial position — liability side: (i) financing (long-term, short-term, or lease financing) obtained under an Islamic mode; (ii) interest or mark-up accrued on any conventional loan or advance.
Statement of financial position — asset side: (iii) long-term and short-term Shariah-compliant investments; (iv) Shariah-compliant bank deposits, bank balances, and TDRs.
Statement of comprehensive income: (v) revenue earned from a Shariah-compliant business segment; (vi) break-up of late payments or liquidated damages; (vii) gain, loss, or dividend earned on Shariah-compliant investments, or share of profit from Shariah-compliant associates; (viii) profit earned from Shariah-compliant bank deposits, bank balances, or TDRs; (ix) exchange gain earned from actual currency; (x) exchange gains earned using conventional derivative financial instruments; (xi) profit paid on an Islamic mode of financing; (xii) total interest earned on any conventional loan or advance; (xiii) source and detailed break-up of other income, including its Shariah-compliant and non-compliant portions.
Other disclosure requirements: relationship with Shariah-compliant financial institutions, including banks, takaful operators, and their windows.
Explanation — “Shariah non-permissible business activities” includes (without limitation) conventional financial institutions (conventional banks, insurance, interest-based lending), gambling and betting, liquor and liquor-related activities, pork and pork-related activities, non-halal food and beverages, Shariah non-compliant entertainment, and tobacco and tobacco-related activities, and any other activity deemed Shariah non-permissible.
Note: the source S.R.O. numbers its final item “(xii)” a second time (after already using (xii) for the interest-earned item) rather than “(xiv)” — reproduced above in that same order without renumbering, since this is a drafting quirk in the notification itself, not a substantive ambiguity.
Part II — Requirements as to Statement of Financial Position
11. Disclose as separate line items on the face of the statement of financial position: (i) revaluation surplus on property, plant and equipment; (ii) long-term deposits and prepayments; (iii) unpaid dividend; (iv) unclaimed dividend; and (v) cash and bank balances.
Fixed Assets
12. Where a company-funded property or asset is not held in the company’s name or is not in its possession/control, disclose that fact and the reasons, along with the property/asset’s description and value and who holds/possesses/controls it.
13. Land and buildings must be distinguished between freehold and leasehold.
14. Forced sale value must be separately disclosed on revaluation of property, plant and equipment, or investment property.
15. On sale of fixed assets, if the aggregate book value of assets sold exceeds Rs. 5 million, disclose for each asset with a book value of Rs. 500,000 or more: (i) cost or revalued amount; (ii) book value; (iii) sale price and mode of disposal; (iv) particulars of the purchaser; (v) gain or loss; and (vi) any relationship of the purchaser with the company or its directors.
Long Term Investments
16. (Clause deleted.)
Long Term Loans and Advances
17. On loans/advances to directors: (ii) the purpose of the loan/advance; and (iii) a reconciliation of the carrying amount at the start and end of the period, showing disbursements and repayments.
18. Reasons must be disclosed for any loan/advance obtained or provided otherwise than on arm’s-length terms.
19. On loans and advances to associates and related parties: (i) name of each associate/related party; (ii) terms of the loan/advance; (iii) particulars of any collateral security; (iv) the maximum aggregate amount outstanding at any time during the year, by month-end balances; (v) provisions for doubtful loans/advances; and (vi) any loans/advances written off.
Current Assets
20. On debts/receivables from associates and related parties: (i) name of each associate/related party; (ii) the maximum aggregate amount outstanding at any time during the year, by month-end balances; (iii) receivables past due or impaired, with age analysis distinguishing trade debts, loans, advances, and other receivables; (iv) debts written off as irrecoverable, similarly distinguished; (v) provisions for doubtful/bad debts, similarly distinguished; and (vi) justification for any reversal of a doubtful-debt provision.
21. For loans/advances exceeding Rs. 1 million — other than to employees under the company’s HR policy or to suppliers of goods/services — disclose the borrower’s name, repayment terms, and any collateral security, separately.
22. Any provision for bad/doubtful loans and advances, or for diminution/loss on an asset, is shown as a deduction from the gross amount.
Share Capital and Reserves
23. Capital and revenue reserves must be clearly distinguished; any reserve the Act requires to be maintained is separately disclosed; legal or other restrictions on distributing or applying reserves must be disclosed for every reserve maintained.
24. Issued share capital must separately disclose: (i) shares allotted for cash consideration; (ii) shares allotted for consideration other than cash (property and others separately); (iii) bonus shares allotted; and (iv) treasury shares.
24A. Any discount on the issue of shares is shown separately as a deduction from share capital in the statement of financial position and the statement of changes in equity.
25. Shareholder agreements covering voting rights, board selection, rights of first refusal, and block voting must be disclosed.
Non-Current Liabilities
26. Amounts due to associated companies and related parties are disclosed separately.
Current Liabilities
27. Disclose as separate line items: (i) payable to a provident fund, contributory pension fund, or other contributory retirement fund; (ii) deposits, accrued liabilities, and advances; (iii) loans from banking companies/financial institutions other than related parties; (iv) loans/advances from related parties including sponsors and directors, with purpose and utilisation; and (v) loans/advances classified as secured and unsecured.
28. For a provident/pension/other contributory retirement fund the company maintains, state that investments in collective investment schemes and listed equity/debt securities out of those funds comply with Section 218 and its conditions.
29. On security deposits payable: (i) bifurcate amounts received as security deposits for goods/services to be delivered into amounts usable for company business and others; (ii) amount utilised for business purposes per Section 217 and any written agreement; and (iii) amount kept in a separate bank account.
Contingencies and Commitments
30. Describing any legal proceeding before a court, agency, or government authority (local or foreign): name of the court/agency/authority, date instituted, the principal parties, a description of the factual basis, and the relief sought.
Part III — Requirements as to Statement of Profit or Loss Account
31. Disclose as separate deductions from turnover: (i) trade discount; and (ii) sales and other taxes directly attributable to sales.
32. The aggregate amount of auditors’ remuneration — fees, expenses, and other remuneration for audit services and for services in any other capacity (stating their nature), shown separately for each joint auditor where applicable.
33. Where a donation to a single party exceeds 10% of the company’s total donations for the year, or Rs. 1 million, whichever is higher, disclose the donee’s name; where a director or their spouse has an interest in the donee (of any amount), disclose the director’s name and interest.
34. (Clause deleted.)
35. Disclose, separately for directors, chief executive, and executives (with the number of each): (i) fees; (ii) managerial remuneration; (iii) commission or bonus (nature stated); (iv) reimbursable expenses in the nature of a perquisite/benefit; (v) pension, gratuities, and company contributions to provident/superannuation/other staff funds, and compensation for loss of office/retirement; (vi) other perquisites and benefits (cash or kind), with approximate money values where practicable; and (vii) amounts for any other services rendered.
36. For royalties paid to companies/entities/individuals: (i) name and registered address; and (ii) relationship, if any, with the company or its directors.