Lahore: The Securities and Exchange Commission of Pakistan (SECP) has filed a petition for the winding up of Salman Noman Enterprises Limited (SANE) under sections 301(m) and 304 of the Companies Act, 2017, citing serious financial mismanagement and operational deficiencies. The petition, addressed to the Honorable Court, underscores the company’s suspended trading activities and non-compliance with regulatory standards.
The SECP’s involvement escalated following a series of inspections and audits that revealed Salman Noman Enterprises Limited’s precarious financial health. According to a SECP sanctioned order dated June 23, 2023, the company has failed to maintain necessary records and its liabilities exceeded its current assets by a significant margin, prompting concerns over its viability. As of the financial year ending June 30, 2018, SANE reported accumulated losses amounting to Rs. 658.70 million, further eroding its operational stability.
According to information available from the Pakistan Stock Exchange (PSX), the shares of SANE were suspended from trading due to non-disclosure of critical financial information and governance lapses. The decision to halt trading was initially noticed on January 29, 2019, with subsequent confirmations through official notices, reflecting the company’s ongoing compliance failures.
The SECP’s comprehensive review included multiple inspection orders and show cause notices addressing the non-availability of essential financial records and the company’s inability to provide necessary documentation during audits. This led to the issuance of a formal Show Cause Notice under Section 256 of the Companies Act on June 8, 2021, further substantiating the case for winding up.
This legal action aligns with SECP’s mandate to ensure transparent and efficient functioning of corporate entities and protect the interests of various stakeholders, including shareholders and creditors. The petition highlights the need for strict adherence to corporate governance norms to uphold the integrity of the market and safeguard economic interests.