Lahore: Akbari Chemical Industries (Pvt.) Limited has been slapped with a penalty of Rs. 10,000 for failing to comply with mandatory requirements under the Companies Act, 2017. The Securities and Exchange Commission of Pakistan (SECP) issued the penalty following proceedings initiated through a Show Cause Notice dated March 20, 2024. The notice was issued due to the company's failure to file its audited financial statements for the year ending 2023 within the stipulated timeline.

The company was required to submit its financial statements to the Registrar within 15 days of its annual general meeting, as mandated by Section 233 of the Companies Act, 2017. However, Akbari Chemical Industries missed the deadline, prompting the SECP to issue a notice demanding an explanation for the non-compliance.

An initial hearing was scheduled for March 29, 2024, but neither the company nor its directors appeared. A subsequent hearing took place on April 8, 2024, where Mr. Attiq-ur-Rehman Mirza represented the company. Mr. Mirza attributed the delay to a restructuring of the finance and accounts department, which he claimed led to the oversight. However, the explanation failed to satisfy the adjudication officer, who determined that the non-compliance was deliberate.

According to information available from the Pakistan Stock Exchange (PSX), Akbari Chemical Industries' failure to file its financial statements raised serious concerns about the company's management systems and internal controls. The adjudication officer emphasized the importance of timely and accurate financial reporting to ensure transparency and fulfill the fiduciary duties of the company's directors.

The SECP's decision to impose a penalty reflects the seriousness of the breach and underscores the necessity for companies to adhere to legal requirements. The company has been instructed to deposit the penalty in a designated bank account within thirty days to avoid further recovery proceedings.

This enforcement action serves as a reminder to companies about the critical importance of compliance with statutory obligations to maintain market integrity and protect stakeholders' interests in the designated market category.