Wateen Telecom Limited’s non-holding of board meeting to consider the half yearly accounts and 3rd quarterly accounts
Karachi: This is with reference to your letter KSE/G-1132- 4531 dated 30-03-2011, wherein you sought explanation that Wateen Telecom Limited (WTCL) (“Company”) has failed to intimate the Karachi Stock Exchange (Guarantee) Limited (“Exchange”) with respect to the board of directors meeting to be convened for consideration and approval of Wateen’s half yearly and 3rd quarter accounts.
It is pertinent to mention here that there has been a significant change in the recent past regarding the Management of the Company which change was also reflected in our Board structure. Since the takeover by the new Management and induction of two new Directors, the entire focus has been on safeguarding the interest and stake of the shareholders as the Company was facing many challenging situations inter alia due to changes in the market dynamics, business projections and revenue streams etc.
The new Management and the present Board bring along with them very comprehensive and significant experience of the telecom market and have previously successfully steered telecom undertakings through similar situations. We are fully determined to overcome these challenges and are resolving them on priority basis. The Management of the Company and its Board are taking many serious steps to ensure that the Company is able to fulfill all its regulatory and legal obligations. The change in the Board structure is one of the many significant steps taken in this regard.
We can assure you that at no stage there had been any willful or deliberate delay in the circulation of quarterly accounts. The Management of the Company and its Board are working in a professional and transparent manner with the objective of bringing the Company in a more stable condition and stronger footing.
Based on the steps taken by the Management and the Board, the sponsoring shareholders have in the past (after IPO) injected significant amount in the Company under the present circumstances: The sponsoring shareholders also intend to inject further equity in future in order to support the business and various projects of the Company. The equity injected and proposed to be injected by the sponsoring shareholders will ultimately benefit all shareholders of the Company.
We humbly submit that the Company is taking all possible steps to ensure that it remains compliant with the statutory requirement. In this regard, as submitted earlier, the Company has engaged an internationally recognized firm of chartered accountants to conduct a thorough review of the Company’s financial systems, books of accounts and financial statements, and this review is likely to be completed in next one-two months.
Accordingly, the Company and its management remain confident that, as soon as the aforementioned review has been completed, the Company will resume the transmission and filing of all its periodic accounts and financial statements within the time limits prescribed by the Companies Ordinance, 1984.
Kindly note that Mr. Sajid Farooq Hashmi, Company Secretary and Legal Head of Wateen attended a hearing called by Honorable Commissioner (CLD), Tahir Mahmood, Securities and Exchange Commission of Pakistan (“SECP”) in Islamabad on the subject matter, in which the aforementioned information was provided to SECP.
In view of the aforesaid and considering that there been no willful or deliberate delay on the part of the Management of the Company and its Board Directors, We humbly submit to grant the extension to the Company till the end of September. We assure you that the Company shall submit the statutory returns/filings before end of September.
For more information, contact:
Sajid Farooq Hashmi
Wateen Telecom Limited
Centre, Main Boulevard,