Indus Dyeing and Manufacturing Limited (IDYM), a Pakistani yarn manufacturer, announced that it uncovered a major financial embezzlement involving two of its employees, with authorities estimating the misappropriated assets and properties at around Rs522 million.
The listed company disclosed the development in its notice to the Pakistan Stock Exchange (PSX) and the Securities and Exchange Commission of Pakistan (SECP) on Friday.
In its notice, the company shared that it identified two individuals as Nadeem ul Haq and Bakhtiar Masood, who allegedly misappropriated company funds.
IDYM shared that it initiated an internal inquiry into suspicious financial activities and found the above-named employees to be involved in the misappropriation of funds of the company.
“The company promptly informed the relevant law enforcement agencies, resulting in the arrest of the individuals.” The company said that legal actions have been initiated against the persons.
“The authorities have identified and frozen certain assets/properties in the name of ex-employees and their benamidars with an estimated worth of Rs522 million approximately.
“Further, while the company is taking all necessary steps to assess the full extent of the misappropriation, potential recovery of funds through assets/properties identified and frozen by the authorities, the present estimate of the negative financial impact to the company is Rs439 million approximately, for which appropriate provisioning is being proposed by the company,” it said.
IDYM added that it has strengthened internal controls and risk management systems to prevent such incidents in the future.
“The company remains committed to maintaining transparency and upholding the highest standards of corporate governance,” the filing stated, adding that further disclosures will be made once the full financial impact is ascertained.
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