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AG
faults CPC 2003 accounts The report due to be presented in Parliament shortly shows a deterioration in financial results by Rs. 4,912 million, with the profit earned in the year 2003 being Rs. 4,874 million as compared to the profit of Rs. 9,786 million in the preceding year. The report reveals irregularities such as a stock of 10.026 million litres of Lanka Kerosene, 32.842 millions of litres of Lanka Auto Diesel, 25.080 million litres of Lanka Super Diesel and 0.057 million litres of 90 Octane petrol belonging to the Corporation held at China Bay not being included in the accounts. The report further adds that the excise duty amounting to Rs. 177.590 million for the year had been paid in two instalments in April and July while the penalty payable for the delay had not been met. The Auditor General has further disclosed eight cases of inappropriate functions under a section listing inappropriate disclosures. Under this section it states the CPC has not disclosed its profit or loss from disposal of Ceylon Petroleum Storage Terminal Limited (CPSTL) and disposal of 100 filling stations, separately in the income statement. It also states that an expenditure of Rs. 35.089 million paid to a private valuer as valuation fees of Ceylon Petroleum Storage Limited (CPSTL) and Lanka Indian Oil Corporation has not been considered when arriving at the net-restructuring proceeds. The report also notes that deemed dividend tax amounting to Rs. 618.548 million, payable to the Inland Revenue Department had been included in the statement of changes in equity in arriving at the value of retained earnings and therefore the deemed dividend tax is not reflected in the income statement. Among other violations of regulations the report states that long term loans amounting to Rs. 7,577 million had been transferred along with related assets to the CPSTL which had been inappropriately shown in the accounts as receivable under Trade and Other Receivables without being shown as deduction from interest bearing loans and other payables. The report also states that transactions with related parties have not been properly disclosed in the financial statements and that the appointments and resignations of directors have not been mentioned. The report adds that detailed documentary evidence for insurance refund, insurance reserve and other receivables amounting to Rs. 6.133 million, Rs. 11.061 million and Rs. 376 million respectively was not made available for perusal. It further notes the non-compliance with laws, rules, regulations and management decisions and cites Section 53 (1) of the Inland Revenue Act No. 38 of 2000 and the Public Enterprises Circular No. 95 among those violated. |
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