' In the matter of order dated February 25, 2009 under clause (b) of subsection (1) of section 160 of the Companies Ordinance, 1984 read with S.R.0.1227 of 2005 ' ABID HUSSAIN, DIRECTOR (ENFORCEMENT).---This order shall dispose of the review application by the Chief Executive of Colony That Textile Mills Limited (hereafter referred to as "the Company") under section 484 of the Companies Ordinance, 1984 (hereinafter referred to as "the Ordinance!) filed against the order under Clause (1) of subsection 160 of the Ordinance read with S.R.O. 1227 of 2005 dated February 25, 2009.
2. The brief facts of this case are that a penalty of Rs,10,000 was imposed on the Chief Executive of the Company vide order under subsection (1) (b) of the section 160 of the Ordinance dated February 25, 2009.
3. The Chief Executive of the company filed an application for the review of the order and requested the Commission that the proceedings initiated through the aforementioned order may please be dropped as the -fixed assets proposed to be disposed of does not constitute a sizeable part of the total assets of the company and this business should have not been included in the notice of AGM as special business.
4. The Chief executive vide letter dated April 6, 2009 was asked to provide the list of scrapped items duly certified by the auditors of the company to be disposed of along with the progress report related to disposal of surplus land. The company vide its letter dated April 16, 2009 provided the requisite information to the Commission.
5. The information as certified by the statutory auditors of the company reflected that the assets proposed to be disposed of have a cost of Rs,662,824 which does not constitute to be a sizeable part of the assets of the company, therefore, the provisions of subsection (3) of section 196 as well as section 160 of the Ordinance are not attracted.
6. Therefore, keeping in view the above facts the penalty imposed under subsection (8) of section 160 of the Ordinance through order dated February 25, 2009 is hereby withdrawn with no further action. However, the Chief Executive is hereby advised to provide the complete information to the Commission and to the shareholders at relevant time in order to avoid such circumstances in future.