UNITY terms SECP’s show-cause unlawful

November 18, 2022 (MLN): In order to quash the rumors that are being spread in the market, Unity Foods Limited (PSX: UNITY) on Friday clarified that the business decisions made by the company do not fall under the purview of the Securities and Exchange Commission of Pakistan (SECP) and therefore the show-cause notice is unlawful. 

Thus, the company sought the honorable Islamabad High Court’s assistance in this matter whereby the Honorable Court has granted interim relief to the Company.

As this matter is in court now, the company opted not to comment on it further.

To recall, the company received a show-cause notice from the SECP on October 17, 2022, in which the respected regulator had inter alia questioned some “business decisions” made by the company in the past.

The management also clarified that the resignation of the company's auditor was due to the fact that the auditor had indicated its inability to complete the audit within the stipulated time as per SECP’s extension to hold the AGM which was granted. The company has appointed new auditors to conclude the annual audit of accounts for the year ending June 30, 2022, after receiving the previous auditor’s resignation.

The company installed the latest ERP software SAP4hana and the data transfer into the new system was initiated in July which caused the delay in the provision of the requested information.

There is absolutely no other reason for this resignation. The new auditors have initiated the audit and the process is moving smoothly, it further explained.

“We remain committed to our responsibility to our shareholders and will continue to fight such attempts being made to damage the company,“ the company further said.

Copyright Mettis Link News