ISLAMABAD, Nov 5: The SECP has initiated legal proceedings against the chief executive and directors of Polypropylene Products Limited for their failure to maintain proper books of account as required under the Companies Ordinance 1984.

The action has been taken after the report by auditors of the company alleging that its books had not been prepared in a proper and organized manner. The audit report further stated that they could not carry out the physical verification of stock, the work in process and stores due to lack of arrangements by the management as on June 30, 2001.

For this reason, it said, the auditors were unable to apply adequate alternative audit procedure to confirm the physical balance on that date.