KE terms former director's claims 'misunderstanding of accounting principles'

January 23, 2023 (MLN): The management of K-Electric Limited (PSX: KEL) has termed all the allegations and contentions by former director Syed Asad Ali Shah misunderstanding accounting principles, the company's filing on PSX showed today. 

Earlier, there was news appearing in some sections of media with respect to a letter written and sent by Syed Asad Ali Shah, a former director of KEL, addressed to the Pakistan Stock Exchange (PSX) with copies marked to (i) Securities and Exchange Commission of Pakistan (SECP); (ii) National Electric Power Regulatory Authority (NEPRA); (iii) Power Division, Ministry of Energy, Government of Pakistan, Chairman, Audit Oversight Board, and Institute of Chartered Accountants of Pakistan. Through the said letter, Mr. Shah has alleged that there are material misstatements in the financial statements of KE, which render them misleading.

"As soon as we were made aware of Mr. Shah's letter, we wrote to PSX on 11 January 2023 to provide us with an opportunity to respond to Mr. Shah's letter as KE is, and has always been, fully compliant with all the relevant rules and regulations including financial reporting and accounting standards," the notice added. 

"We further stated in our letter that Mr. Shah's allegations and contentions were misrepresentations of facts and misunderstanding of accounting principles," it said. 

The company is in the process of preparing a detailed response to be sent to relevant authorities, addressing all the allegations and contentions raised in Mr. Shah's letter.

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