Asia Capital Ltd will have to revise its balance sheet by Rs.109.3 million, taking into account the continuous decline in the company's long term investment in Richard Pieris quoted shares which have been falling continuously within the last three years.
According to Asia Capital's Annual Report and accounts for 2007, the company has not made any provisions in the financial statements for the permanent diminution in value as required by SLAS 22 (Accounting for Investments). The accounts also state that no impairment test has been carried out for the goodwill of consolidation of Rs.150 million as required by SLAS 25 (Revised Business Combination).
The company's auditors, KPMG Ford, Rhodes & Thornton, further state that the financial statements of Asia Couture Ltd, a fully owned subsidiary of the company, have not been audited for the year ended 31 March 2007 and for the previous year and the consolidated financial statements have been prepared based on the unaudited financial statements of these years. As per the information available, Asia Couture had sold its factory with other allied buildings, machinery and equipment for a consideration of Rs.78,000,000 and transferred the employees of the company, as per the agreement entered into with a third party on 1 February 2006, the accounts state.
Further according to unaudited financial statements, Asia Couture has incurred a loss of Rs.358,627 for the year ended 31 March 2007. However, according to the information, available investment in Asia Couture has been disposed fully on 10 March 2008. The auditors added that Asia Couture Ltd is not a going concern and have not received comfort on the recoverability and classification of asset amounts of Rs.264,300,534 and on the classification of liabilities of Rs.70,434,141 included in the consolidated financial statements as at 31 March 2007.
|
E-mail