| Case ID |
3ad39020-5545-4810-a983-82dd5d2d4725 |
| Body |
View case body. Login to View |
| Case Number |
Appeal No.68 of 2009 |
| Decision Date |
Jun 05, 2012 |
| Hearing Date |
Apr 20, 2012 |
| Decision |
The decision upheld the findings of the impugned order regarding the misstatement in the financial statements of Adam Sugar Mills Limited. The Executive Director (Enforcement) found that the company had recognized sales in violation of its accounting policy, leading to an overstated profit. Consequently, a penalty of Rs.500,000 was imposed on each director, which was later reduced to Rs.250,000 each after considering compliance and corrective measures taken by the directors in the subsequent financial year. |
| Summary |
The case revolves around the misstatement of financial statements by Adam Sugar Mills Limited as per the Companies Ordinance, 1984. The Executive Director required the company to provide explanations regarding the recognition of sales not pertaining to the relevant financial year. The auditors' report highlighted substantial misstatements, leading to a show-cause notice issued under Section 492 of the Companies Ordinance. The decision reinforced accountability for financial reporting, emphasizing the importance of adherence to established accounting policies. The penalty was adjusted in light of the directors' corrective actions in the subsequent year, demonstrating a balanced approach to regulatory enforcement and compliance. |
| Court |
Securities and Exchange Commission of Pakistan
|
| Entities Involved |
Adam Sugar Mills Limited,
Haroon Zakria and Company, Chartered Accountants
|
| Judges |
Imtiaz Haider,
Mohammed Asif Arif
|
| Lawyers |
Muhammad Waseem, FCA,
Iqbal, FCA
|
| Petitioners |
6 Others,
Ghulam Ahmed Adam
|
| Respondents |
Pakistan
|
| Citations |
2013 SLD 969 = 2013 CLD 103
|
| Other Citations |
Messrs Habib Bank Limited v. Messrs Schon Textile Limited 2010 CLD 1819
|
| Laws Involved |
Companies Ordinance, 1984
|
| Sections |
492
|