SECP Investigates Financial Discrepancies in SE Fruits IPO Following Complaint

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has initiated an investigation into the initial public offering (IPO) of SE Fruits and Vegetable Limited after an anonymous complaint surfaced, highlighting significant financial discrepancies in the company’s audit report.

The SECP’s inquiry, prompted by a complaint received on September 11, will scrutinize the IPO approval process to identify any potential gaps, omissions, or negligence. This comes just two days after the commission approved the company’s prospectus, which was based on its audited financial statements.

Preliminary findings from the review have raised concerns over inconsistencies between reported sales figures and sales tax returns for the years 2022-26. Additionally, local sales that were not accounted for in the company’s 2024 income tax return and discrepancies between reported sales and bank credits have been flagged. The complaint specifically questions the validity of the sales figures disclosed in the prospectus, which relied heavily on the audit report.

As part of its response, the SECP is also looking to enhance the oversight capabilities of the Audit Oversight Board to prevent such discrepancies in the future. The ongoing investigation is expected to clarify the responsibilities of those involved in the IPO process and ensure accountability where necessary.