Regnis reports discrepancies in balance sheet

It seems that there are too many companies who get their balance sheets messed up these days.

Regnis (Lanka) Limited said last week it was having issues with its account statements which comes in the wake of Asiri Hospitals Limited having a similar incident nearly a month ago.

The Regnis board of directors issued a statement last week, saying: “We have been alerted to a misstatement of accounts resulting from discrepancies in balances in inventory and some liabilities for prior years due to the possible misconduct and/or negligence of one of its managers,” the statement said, adding that the preliminary inquiries of the Board indicated a financial exposure of approximately Rs.206 million after taxes of which approximately Rs.33 million could relate to the current year. “The inquiries so far indicate that there is no fraud or misappropriation,” it further said, explaining that the board has suspended the services of the said manager and commenced a thorough investigation into the circumstances that have led to the aforesaid misstatement.

The company has instructed its auditors Ernst & Young to promptly conduct a comprehensive audit, in order to investigate the aforesaid discrepancies.

“The Board assures the Colombo Stock Exchange and the shareholders of the company that it will pursue the investigation with utmost diligence and that it will keep them updated on the progress of the investigation,” the statement said.