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Companies Ordinance (XLVII of 1984)------- --------Ss. 227, 229 & 476-------Maintenance of employees' provident fund-------Utilizing provident fund amount by the company for its operational purposes-------Paid up capital of the company at 30-6-2012, stood at Rs.278.615 million rupees, divided into 27.816 million ordinary shares of Rs.10 each-------Commission, while examining the annual audited accounts for year ended 30-6-2012 of the company, observed that, total employees' provident fund contribution booked during the year under review, was Rs.18.178 million, whereas, the total liability shown in that regard under the head of "Trade and Payable", was Rs.51.376 million-------Commission dissatisfied with the response of the company found that provisions of S. 227 of the Companies Ordinance, 1984 had been violated in respect of utilization of provident fund amount of the company for its operational purposes-------Maximum aggregate penalty of Rs.50,000 was imposed on all Directors of the company-------Validity-------Directors contended that they had no role in the default in contribution towards Employees' Provident Fund; and penalizing them was not within the spirit of S.227 of the Companies Ordinance, 1984-------Contributions to Employees' Provident Fund had been made with profit accrued-------Company had complied with the provisions of S.227 of the Companies Ordinance, 1984; and any delay in provident fund, could be condoned-------Impugned order was set aside to the extent of penalty, with strict warning to the Directors to fully comply with the requirements of S.227 of the Company Ordinance, 1984 in future. Messrs Metropolitan Steel Corporation Limited's case 2006 CLD 454; United Brands Ltd.'s case 2008 CLD 731; Arif Habib Limited's case 2007 CLD 1667 and Pak Kuwait Takaful Company Ltd.'s case 2013 CLD 1710 rel. THIS ORDER PASSED BY: ZAFAR ABDULLAH, COMMISSIONER (SMD:------------- 1. This order is in Appeal No. of 25 of 2014 filed under section 33 of the Securities and Exchange Commission of Pakistan (the "Commission") Act, 1997 ("SECP Act") against the order (the "Impugned Order") dated 17/06/13 passed by the Respondent. 2. The brief facts of the case are…

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