A share holder of Touchwood Investments Ltd, Sri Lanka's only public quoted commercial forestry company, has accused the company of fudging its annual accounts.

Iqbal Bin Issac of Colombo 2 has filed action against the company and its directors in the Colombo District Court and seeking a sum of Rs. 25 million in damages caused to him due to Touchwood deliberately and intentionally manipulating the Annual Accounts of the company for the financial years 20004/2005, and 2005/2006.

In his petition, the plaintiff brought to the notice of the court that the intention of the company was to artificially enhance the real profit and financial situation of the company to lure investors thus artificially improving the share value. M.U. M Ali Sabry, Attorney -at -Law with Rasika Dissanayake and Erusha Kalidasa Attorneys-at -Law instructed by Sanath Wijewardane Attorney -at- Law appear for the Plaintiff Mr. Iqbal Bin Isaac

A senior official of Touchwood Investments said they are unaware about such a petition and have not received any summons as at Tuesday, August 12.

He said the company has recorded a net profit of Rs. 284 million for the financial year ending on March 31, 2008. The company's revenue for the same period has been approximately Rs. 600 million. The AGM of the company is scheduled for next month and the final accounts and the annual report will be presented at the meeting, he said, adding that the profits have increased by nearly four fold in comparison to the previous financial year.

The revenue too has increased by 29 percent which shows the stable commercial growth of the company.