November 15, 2002	Friday	Ramazan 9, 1423

ISLAMABAD, Nov 14: The Securities and Exchange Commission of Pakistan has penalized Arman & Co, practising chartered accountants, for submitting audit report relating to a listed company in an irregular manner.

According to an announcement of SECP here on Thursday, the action against the firm had been taken under section 260 of the Companies Ordinance 1984, and Rule 35 of the Companies (General Provisions and Forms) Rules 1985.

Arman & Co had been appointed as auditor of a listed company to audit its accounts for the financial year ending June 30, 2001. On perusal of the accounts of the company by the staff of enforcement & monitoring division of SECP, it was noticed that the audit report signed by the CA, Asrar ul Majeed Khan, was not prepared on the prescribed form 35-A.

It was also found that the company had not followed the requirements of Fourth Schedule to the Companies Ordinance, 1984 and International Accounting Standards (IAS) for their accounts for the year 2000-01. But the auditor did not draw the attention of the company’s members towards these non-compliance and contraventions.

The CA, SECP source said, admitted the default and a fine aggregating Rs4,000 was imposed on him for negligence in the performance of his duties.

The SECP has also asked the Institute of Chartered Accountants of Pakistan to take necessary action against the chartered accountant in accordance with provisions of the Chartered Accountants, Ordinance 1961.

The Commission, by another order, punished Sajjad Safri & Co, Chartered Accountants, for negligence in preparing his audit report on a listed company in accordance with various provisions of the company law.