Indus Dyeing Reports Employee Fraud, Authorities Freeze Rs. 522 Million in Assets

Indus Dyeing and Manufacturing Limited has reported a significant case of financial embezzlement, allegedly involving two former employees, Nadeem ul Haq and Bakhtiar Masood. The company disclosed the development to the Pakistan Stock Exchange (PSX), the Securities and Exchange Commission of Pakistan (SECP), and other stakeholders. According to the company, an internal inquiry uncovered the misappropriation of company funds by the two employees. Law enforcement agencies were promptly notified, leading to the arrest of the individuals and the freezing of assets and properties in their names and those of their associates, with an estimated value of Rs. 522 million. Indus Dyeing estimates the negative financial impact of the embezzlement at approximately Rs. 438 million, for which appropriate provisioning is being proposed. The company is working to recover funds through the identified and frozen assets, while also assessing the full extent of the misappropriation. In response, Indus Dyeing has taken immediate steps to strengthen its internal controls and risk management framework to prevent similar incidents in the future. The company has pledged to maintain transparency and will provide further disclosures as more information becomes available.