BM Report

The securities regulator slammed top five brasses of Meghna Pet Industries, including its chairman, with penalties worth Tk 35 million for gross violation of rules and regulations.

Meghna Pet put the value of its property, plant and equipment at Tk 63.4 million as of June 2021 despite the fact that it had been non-operational for more than 17 years.

It even granted unsecured loans to its sister concern overlooking its worsening financial condition.

The company failed to provide an inventory report to the inquiry committee, but it had reported inventories worth Tk 22.6 million as of June 2021.

An inquiry committee found out that the production of Meghna Pet Industries, a sister concern of Meghan Group, has remained suspended since 2004 but it did not disclose the price-sensitive information (PSI).

The company also provided misleading information about the value of property, plants, equipment, and inventories.

As per a regulatory decision, the company’s chairman, Muhammad Zakaria and managing director MF Kamal will pay a fine of Tk 10 million each.

The BSEC also imposed a fine of Tk 5 million on each of three directors — Md Abu Taher, Kabir Ahmed, and Wali Ullah. The fines have to be paid to the regulator within 30 days.

After the expiry of the time given, those penalised would have to count an additional Tk 10,000 payment for each day.