SEC/Enforcement/200/2003-216
DIRECTIVE
Whereas
as per section 2(g) of the Securities and Exchange Ordinance, 1969 (ORDINANCE
No. XVII OF 1969) Bangladesh Zipper industries Ltd. is an issuer (herein after
referred to as issuer); and
Whereas
the Commission, in terms of power vested under rule 12, sub-rule 3, as amended,
of the Securities and Exchange Rules, 1987 appointed Rahman
Rahman Huq, Chartered
Accountants, to re-audit the financial statements of Bangladesh Zipper
industries Ltd. for the year ending on 30 June 2001 and the auditor was
appointed in the public interest; and
Whereas it
appears from the Commission’s appointed auditor’s audit report that the
statutory auditor of the issuer, M/S N. Chakraborty
& Co., Chartered Accountants, failed to report the true state of affairs of
the issuer for the year ending on 30 June 2001; and
Whereas it
also appears, among others, from the Commission’s appointed auditor’s audit
report that the issuer-
(i) did not maintain proper books of accounts required to
reflect its state of affairs and
to substantiate its expenditures;
(ii) did
not produce sufficient and appropriate audit evidence to the auditor for audit;
(iii) has
suffered huge financial loss due to unexplained bank transactions with its
sister concerns and huge quantity of
sales to sister concerns; and
Whereas in
view of the foregoing facts the Commission is of the opinion that a directive
under section 20A of the Securities and Exchange Ordinance, 1969, as amended by
The Securities and Exchange (Amendment) Act, 2000 should be given to the
issuer.
Therefore,
to protect the shareholders’ interest, interest of the investors and to ensure
fair play in the capital market, Bangladesh Zipper Industries Ltd. is directed
under section 20A of the Securities and Exchange Ordinance, 1969, as amended by
The Securities and Exchange (Amendment) Act, 2000, to rectify its books of
accounts within 31 December 2003 in the light of the audit report mentioned
above and also make good the loss suffered due to huge inter company
transactions, up to the satisfaction of the auditor appointed by the
Commission.
By Order
of the Securities and Exchange Commission
Saleh Ahmed Chowdhury
Chairman (In-charge)