Sunday May 05, 2024
Sunday May 05, 2024
Friday, 27 November 2020 00:10 - - {{hitsCtrl.values.hits}}
The Securities and Exchange Commission has decided to appoint an external firm of chartered accountants to advise future course of action against MTD Walkers Plc, which is currently having myriad issues of non-compliance, default and other allegations.
The decision was following the Commissioners of the SEC at their last meeting discussing and taking grave notice of non-compliance of the Listing Rules of the Colombo Stock Exchange (CSE) by MTD Walkers and the default in payment by the company on the type B debentures issued, the non-submission of the Annual Reports for the financial years ended 2018/2019, interim financial statements after 30 June 2019 and on the complaints received alleging that the assets of MTD Walkers were being sold and funds being siphoned out without proper internal controls.
“The members of the commission, having taken grave notice of the above, have decided to appoint an external firm of chartered accountants to conduct ‘An Agreed Upon Procedure’ to conduct a Special Purpose Audit and to report back to the SEC within a short period of time in order to ascertain whether the SEC is required to take further measures to safeguard the interests of the company, its shareholders, debenture holders and the investing public,” stated the directive made public yesterday.
It said that MTD Walkers PLC, its Board of Directors, Chief Executive Officer, Chief Financial Officer and all management personnel are directed;
a) To desist in any manner from destroying, concealing, altering, removing, amending or cause the destruction, concealment, alteration, amendment or removal of any information that is in the records or books of the company maintained in the ordinary course of business;
b) To extend full co-operation to the external firm of chartered accountants that will be appointed to facilitate the smooth conduct of an Agreed Upon Procedure to conduct a Special Purpose Audit; and
c) To pay the fees to the external firm of chartered accountants that will be appointed by the SEC to conduct the said Agreed Upon Procedure for the Special Purpose Audit.
SEC said this directive would be effective from the date hereof and MTD Walkers PLC, its Board of Directors and the management of the company or any of its agents were hereby directed to ensure strict compliance with this directive when the external firm of chartered accountants was appointed by the SEC to conduct the above said procedure to conduct a Special Purpose Audit.
