Sierra discovers Rs.172 mln discrepancy in accounts, CSE suspends trading
View(s):Trading in Sierra Cables stocks was suspended on Tuesday at the Colombo Stock Exchange (CSE) on a company request due to significant “misstatements”in its financial statements for several years with the discrepancy amounting to approximately Rs.172 million.
‘Misstatements’ in the financial statements of the company were said to be found for the years 2010/2011, 2011/2012, 2012/2013, and 2013/2014, the company stated to the CSE.
The KPMG preliminary report identified a discrepancy, tentatively amounting to approximately Rs.172 million between the value of work in progress as reflected in the General Ledger as of March 31, 2014 and the amounts indicated by a physical verification. It is believed that there could be other significant matters in accounts relating to the recording of stocks.
In the statement it was noted that there could be a significant impact on the accounts of the company and that a restatement of accounts will probably be necessitated following the receipt of a final report from KPMG accountants.
The company noted that following the suspicions raised, an inquiry was initiated and KPMG was required to give a preliminary report.
In this respect, the company has called for a suspension of their trading “until a comprehensive disclosure can be made by the board.” A similar request was made to the Securities and Exchange Commission this morning as well, Sierra Cables stated in the announcement.