August 21, 2002	Wednesday	Jamadi-us-Saani 11,1423

ISLAMABAD, Aug 20: Securities and Exchange Commission of Pakistan has imposed a fine of Rs0.3m on the Chief Executive of Dadabhoy Cement Industries for making interest- free loans and advances to its associated companies in violation of the requirements of section 208 of the Companies Ordinance, 1984.

The irregularity was detected during an examination of the accounts of Dadabhoy Cement for year 1999-2000. It was found that Dadabhoy Cement, which is a public limited listed company engaged in the production and sale of cement, according to SEC source, had provided loans and advances of over Rs62 million to four of its associated companies, free of any mark-up and without complying with the requirements of the company law.

When proceedings were initiated against the company, the source said, the SEC was informed that they had recovered substantial advances from its associated companies except for Dadabhoy Sack Limited as well as mark-up on loans to the tune of Rs25.654 million.

The company was, however, directed to submit a certificate from the auditors regarding recovery of Rs25.654 million from its associated companies within one month of the date of the order.

In view of the substantial recovery of advances and mark-up thereon, Enforcement and Monitoring Division of the SEC, taking a lenient view of the default, penalised only the chief executive of the company who was mainly responsible for violation of provisions of the Companies Ordinance.