ISLAMABAD, April 15: The Enforcement Department of the Securities and Exchange Commission of Pakistan (SECP) found 34 companies violating different rules during last month. Out of these, eight companies were fined an aggregate amount of Rs335,000, stated an official announcement issued here on Friday. Penalties amounting to Rs145,000 were imposed on four companies including M/s Latif Jute Mills Limited, M/s Service Industries Textiles Limited, M/s Kashmir Polytex Limited and M/s Service Fabrics Limited for non/late circulation of quarterly accounts.
A penalty of Rs130,000 was imposed on M/s Frontier Ceramics Limited for non-transfer of shares within prescribed period. M/s Saitex Spinning Mills Limited was fined Rs20,000 for late holding of election of directors.
An investigation has been ordered into the affairs of M/s Latif Jute Mills Limited.
A penalty of Rs20,000 each was imposed on two firms of auditors for giving inaccurate and misleading audit reports in the cases of M/s Kausar Paints Limited and M/s Mubarak Dairies Limited. Show cause notices have been issued to three audit firms for failure to discharge duties and responsibilities according to relevant law.
Seven companies have been issued show cause notices for leasing out project to another company without approval of shareholders, having CEO on more than one listed company of similar business, unauthorized interest-free advances to associated undertakings and non-transfer of provident fund contribution as per the requirements of law.
One company, M/s Quice Food Industries Limited, has been issued directives to convene its overdue Annual General Meetings (AGMs) for the calendar years 2001, 2002 & 2003 and present the audited accounts in the meeting.
Another company was directed to repay entire outstanding amount of Employees Provident Fund Trust it had unlawfully utilized.
Moreover, show cause proceedings have been initiated against eight companies for non/late holding of annual general meetings (AGMs), deficiencies in the statement of material facts in the notice of AGM and non-inclusion of special business in the notice of AGM, and four companies for late submission of cost audit reports.
During last month, the SECP resolved 182 out of 225 complaints of various shareholders.
