Islamabad: The Securities and Exchange Commission of Pakistan (SECP) has issued an order concluding the proceedings initiated through a Show Cause Notice against Tandlianwala Sugar Mills Limited and its directors for alleged contraventions of the Companies Act, 2017. The order, dated May 29, 2025, is a result of a detailed examination of the company's financial practices.

The proceedings, which stemmed from Show Cause Notice CSD/ARN/87/2015-133 dated April 17, 2024, involved key figures from Tandlianwala Sugar Mills, including Chairman Ghazi Khan, CEO Akbar Khan, and Directors Humayun Akhtar Khan, Haroon Khan, Rasheda Begum, Mobeena Akbar Khan, and Tahir Farooq Malik. The SECP's adjudication focused on the alleged violation of Section 199 of the Companies Act, 2017, concerning the company's financial dealings.

According to the SECP, the examination of Tandlianwala Sugar Mills' annual audited financial statements for the year ending September 30, 2023, revealed an extension of a loan or advance amounting to Rs. 76.3 million to Superior Textile Mills Limited (STML), an associated company. This transaction involved common directors, specifically Akbar Khan, Ghazi Khan, Haroon Khan, and Humayun Akhtar Khan.

The SECP addressed the compliance of Section 199 of the Act with the company through a letter dated February 19, 2024. In its response on March 2, 2023, Tandlianwala Sugar Mills provided minutes from the audit committee and Board of Directors meetings that approved the transaction with STML. However, the company did not comment on compliance with Section 199 requirements.

According to information available from the Pakistan Stock Exchange (PSX), Tandlianwala Sugar Mills is classified under the designated market category of sugar production. This latest development underscores the regulatory scrutiny faced by companies within this sector, particularly concerning inter-company financial transactions and compliance with statutory requirements.