Indus Dyeing & Manufacturing Company Limited has disclosed a case of financial embezzlement by two former employees, resulting in an estimated loss of Rs439 million.
In a notification to the Pakistan Stock Exchange (PSX) and stakeholders on Friday, the company reported that two employees, Nadeem ul Haq and Bakhtiar Masood, were found to be involved in the misappropriation of company funds.
“This is to inform the Pakistan Stock Exchange Limited, the Securities and Exchange Commission of Pakistan (SECP), and all stakeholders regarding a significant development concerning a financial embezzlement committed by two employees namely (1) Nadeem ul Haq and (2) Bakhtiar Masood of Indus Dyeing and Manufacturing Limited (the Company),” read the company’s notice.
The company launched an internal investigation into suspicious financial activities, which led to the identification of the employees’ involvement in the misappropriation.
The matter was reported to law enforcement agencies, leading to the arrest of both individuals. Legal actions have been initiated against them, and certain assets and properties owned by the ex-employees and their nominees have been frozen. The value of these assets is estimated at PKR 522 million.
“The authorities have identified and frozen certain assets/properties in the name of ex-employees and their benamidar’s with an estimated worth of PKR. 522 million approximately,” the company said.
Indus Dyeing & Manufacturing further stated that it is taking all necessary steps to assess the full extent of the misappropriation and is working towards recovering the funds through the assets identified and frozen by the authorities. The company also emphasized that it is proposing appropriate provisioning for the negative financial impact, which is estimated at approximately PKR 439 million.
To prevent similar incidents in the future, the company has already taken immediate steps to enhance its internal controls and risk management framework. It assured stakeholders that it remains committed to transparency and upholding the highest standards of corporate governance.
Indus Dyeing & Manufacturing Company Limited, incorporated in Pakistan on July 23, 1957, is a public limited company under the Companies Act, 1913. The company primarily manufactures and sells yarn.
