Law: Companies Ordinance, 1984

Section: 258,259,476

Companies Ordinance, (XLVII of 1984)--Ss. 258, 259 & 476---Companies (Audit of Cost Accounts) Rules, 1998, Rr. 3, 4 & 5--Appointment of cost auditor---Application for---Delay in filing application---Imposition of penalty---In terms of provisions of Rule 3(2) of Companies (Audit of Cost Accounts) Rules, 1998, the Directors of the company were required to appoint cost auditor for the relevant year within sixty days of the close of financial year of the company, but company filed application in that respect with a delay of 48 days---In the terms of R.4(3) of Companies (Audit of Cost Accounts) Rules, 1998, report was required to be submitted to the Commission within sixty days of the appointment of cost auditor, but same was received with a delay of 177 days---Authorized representative of the Chief Executive and Directors of the company, admitted the default and stated that it was their first year of listing and the company had to comply with additional requirements of law and that the management of the affairs of the company, being new, took additional time and resultantly cost audit was delayed---Authorized representative regretted the delay and assured to comply with the provisions of the Rules, within stipulated time in future---Considering the facts narrated by authorized representative of the company, instead of imposing maximum penalty of Rs.26,500 on each of the Directors for said default, penalty of Rs.4,000 was imposed on each Director and Chief Executive. ORDER TARIQ BAKHTAWAR, DIRECTOR (ENFORCEMENT).-This order shall dispose of show cause proceedings in the matter of Show-Cause Notice (SCN) bearing No .EMD/C.O.258/119/2007 dated June 10, 2008 under Rule 5 of the Companies (Audit of Cost Accounts) Rules, 1998 (the "Cost Audit Rules) read with sections 259 and 476 of the Companies Ordinance, 1984 (the "Ordinance,") issued to Messrs Flying Cement Company Limited (the "Company") and its Directors and Cost Auditor for the year ended June 30, 2007. 2. SCN was issued to the Company and its Directors and cost auditor requiring each of them to explain their position in writing within seven days of the date of the notice in respect of non-compliance of…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492