Hascol Petroleum Limited (HASCOL) could revise past financial statements after it received evidence from a whistleblower about the “false purchase orders” in the company’s 2019 books.
In a statement issued through Pakistan Stock Exchange (PSE), HASCOL stated that its Audit Committee verified the evidence last week and referred the matter to its Board of Directors (BOD).
The BOD would decide to redo the past income statements in addition to the past and present balance sheets if the evidence is found to be correct.
The statement added that any revision in financial accounts is not expected to make any material difference to HASCOL’s recent and future operations.
HASCOL has been grappling with a bleak financial situation since 2018. Its revenue has decreased while losses and loans have increased, causing its share price to plunge from Rs. 300 in 2018 to Rs. 11 in 2021.
Oil and Gas Regulatory Authority’s (OGRA) action against the company for unauthorized storage and sale of petroleum products in KP last year also tarnished its repute.
The company recently made headlines after its auditors and a number of members of the board and senior management tendered abrupt resignations.
HASCOL has not disclosed its financial results after Q3 2020, in which its quarterly loss stood at more than Rs. 3 billion and long-term liabilities stood at Rs. 14.5 billion.
The resignation of EY Ford Rhodes as co-auditors and the appointment of Grant Thornton as auditors caused the company to delay announcing its financial results.
HASCOL’s financial results are not expected to be out any time soon as well because Grant Thornton also recently resigned as its auditor for 2020 with immediate effect.