Karachi Stock Exchange’s action against defaulting companies

Karachi, November 22, 2012 (PPI-OT): This is with reference to the action taken by the Exchange against the non-compliant / defaulting companies in default(s) of the Listing Regulations, particularly Regulation No. 30 of the Exchange.

Attached please find herewith a list of seven companies which are being delisted by the Exchange as a consequence of default(s) including non-payment of the dues of the Exchange, failed to induct the ordinary shares of the company into CDS and non- holding of Annual General Meetings.

The companies vide notice issued on April 30, 2012 were advised to rectify the default(s) within 90 days. On failure of the companies to rectify the defaults within the stipulated time, the Exchange vide Notice issued on July 31, 2012 suspended trading in the shares of the companies with the direction to sponsors / majority shareholders to buy-back the shares from the minority shareholders within 30 days i.e. upto August 30, 2012. The companies / management were further advised the action of delisting in case of their failure to rectify the default(s) or opt for voluntary delisting.

The Notice was also served through the Newspapers on September 5, 2012 providing the companies / management, the opportunity of being heard and / or submitting the objection, if any, to the delisting in writing to the Exchange by October 1, 2012.

It is regretted that the companies failed to respond / rectify the defaults and / or opt for voluntary delisting through buy-back of shares from the minority shareholders. It may be noted that these companies being in continuous defaults of the Listing Regulations not only pose a serious threat to the development of capital market but also inhibit the investors’ confidence through lack of transparency. Such companies have also deprived the minority investors of any return on investment.

The Exchange considering the interest of the stakeholders has decided to delist these companies from the Exchange in due course of time. The cases of the companies are being forwarded to the Securities and Exchange Commission of Pakistan for initiating necessary action against the management / companies under the provisions of the Companies Ordinance, 1984.

In future no company will be allowed listing which is an associate of the defaulted company.

Karachi Stock Exchange Limited

Details of Defaulting Companies

S. No.Name of CompaniesName of DirectorsDesignationDefaults
Mr. Muhammad IbrahimChairman30(1)(e) i.e. failed to pay the Annual
Mr. Farooq IbrahimChief Executive OfficerListing Fee of Rs.282,292/- since
Mr. Muhammad ArifDirectorJuly 1, 2002 30(1)(g) i.e.
1Annoor Textile Mills LimitedMr. Abdul QadirDirectorfailed to join CDS
Mr. Muhammad ArshadDirector
Mr. Muhammad AneesDirector
Mr. Muhammad IrshadDirector
Mr. Raheel AkhtarChief Executive Officer30(1)(e) i.e. failed to pay the Annual
Mr. Nadeem ZarDirectorListing Fee of Rs.298,126/- since
Mr. Shahid SaleemDirectorJuly 1, 2006
2Data Textiles LimitedMr. Aqib Riaz SheikhDirector
Mr. Asif Rahim KhanDirector
Mr. Shamim Ahmad KhanDirector
Mr. Muhammad Ayub KhanDirector
Mr. Noor EllahiChairman30(1)(e) i.e. failed to pay the Annual
Mr. Ahmad EllahiDirectorListing Fee of Rs.213,542/- since
Mr. M. Hassan EllahiDirectorJuly 1, 2009
3Hajra Textile Mills LimitedMr. Muhammad AsimDirector
Mr. Muhammad Shafiq BhattiDirector
Mr. Rana Muhammad SaeedDirector
Mr. Shahid Aziz – (Nominee NIT)Director
Mr. Muhammad Idrees Haji EbrahimChief Executive Officer30(1)(e) i.e. failed to pay the Annual
Mr. Saeed Uddin Hameed UddinDirectorListing Fee of Rs.432,292/- since
Mr. Muhammad Arif AbdullahDirectorJuly 1, 1997 30(1)(g)
4Karim Cotton Mills LimitedMr. Abu Talib Muhammad YunusDirectori.e. failed to join CDS
Mr. Zain ul Abedin Muhammad YunusDirector
Mr. Adnan Muhammad AhmedDirector
Mr. Abdul Wahid UmerDirector
Khawaja Khurshid AnwarChairman30(1)(e) i.e. failed to pay the Annual
Khawaja Amer KhurshidChief Executive OfficerListing Fee of Rs.513,542/- since
5Khurshid Spinning Mills LimitedKhawaja Asem KhurshidDirectorJuly 1, 2001 30(1)(g)
Mr. Tariq PervezDirectori.e. failed to join CDS
Mr. Muhammad FaheemDirector
Mr. M. Khalid Saifullah ShahDirector
Khawaja Shahid Amin SethiDirector
Khawaja Muhammad Abdul Rehman JamiChairman30(1)(e) i.e. failed to pay the Annual
Khawaja Muhammad HussainChief Executive OfficerListing Fee of Rs.658,126/- since
6Mehr Dastgir Textile Mills LimitedKhawaja Muhammad AliDirectorJuly 1, 1998 30(1)(g)
Khawaja Muhammad MansoorDirectori.e. failed to join CDS
Khawaja Muhammad UsmanDirector
Khawaja Muhammad AbubakarDirector
Khawaja Muhammad HassanDirector
Mr. Mujeeb Ur RehmanChairman30(1)(b) i.e. failed to hold the AGMs
Mr. Faisal SaleemChief Executivesince June 30, 2010; 30(1)(e) i.e.
Mr. Masood Ur RehmanDirectorfailed to pay the Annual Listing Fee
7Saleem Sugar Mills LimitedMr. Ghulam ShahDirectorof Rs.442,292/- since July 1, 1997
Mr. Muhammad AzeemDirector30(1)(g) i.e. failed to join CDS
Mr. Pazeer AhmadDirector
Mr. Mehmood ShahDirector

For more information, contact:
S. Munawar Ali
Senior Manager
Public Relations
Karachi Stock Exchange
Tel: (92-21) 111-001122
Fax: (92-21) 3241 0825, (92-21) 3241 5136
Email: info@kse.com.pk
Web: www.kse.com.pk

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