IPO fund misuse allegation false, Pacific Denims claims at BSEC hearing

Staff Correspondent | Published: 00:05, Mar 13,2018 | Updated: 00:33, Mar 13,2018

 
 

Pacific Denims Limited’s top brass at a disciplinary hearing on Monday claimed that the allegation brought against them of misusing Tk 21 crore of the company’s IPO fund was false.
The Bangladesh Securities and Exchange Commission summoned PDL board of directors and management to appear before the hearing, as a special audit of the regulator found a number of non-compliances regarding IPO fund utilisation by the listed firm.
PDL company secretary Sorhab Ali told New Age on Monday that regarding the issue of non-payment of Tk 15 crore to the banks concerned (Agrani Tk 5 crore and NCC Tk 10 crore) as of September 30 last year, the company had paid the amount to Agrani Bank in January this year and to NCC Bank in December last year.
He also said that PDL could not pay the aforesaid amount by May 17, 2017 due to some dealing issues with the banks.
The allegation of misuse of Tk 21 crore of the IPO fund was not correct as the company has already paid most of the portion of the IPO fund, Sorhab said.
Regarding the issues of other non-compliances related to poor book keeping, delay in providing supporting documents and non-cooperation with the BSEC auditor, the company admitted that a number of rules violations occurred ‘unintentionally’.
BSEC officials said the commission would give its decision on the issue later. 

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