Karachi November 18 2022: Unity Foods Limited clarify matters related to change in auditor and SECP inquiry that are being discussed with regards to the company and to quash the rumors that are being spread in the market.
Unity share price drops 15.6 percent or PKR 3.07 during the week.
The company has appointed new auditors to conclude annual audit of accounts for the year ended June 30, 2022 after receiving the previous auditors’ resignation. This resignation was due to the fact that the auditor had indicated its inability to complete the audit within the stipulated time as per SECP’s extension to hold the AGM which was granted to the company. The company installed latest ERP software SAP4hana and the data transfer into the new system was initiated in July which caused the delay in provision of the requested information. There is absolutely no other reason for this resignation. The new auditors have initiated the audit and the process is moving smoothly.
The company received a Show Cause Notice from the SECP on October 17, 2022 in which the respected regulator had inter alia questioned some “business decisions” made by the company in the past. We feel that the business decisions made by the company do not fall under the purview of the regulator and therefore the Show Cause Notice is unlawful and hence the company sought the honorable Islamabad High Court’s assistance in this matter whereby the Honorable Court has granted interim relief to the Company. As this matter is in court now, company wish not to comment on it.
