Thursday Nov 20, 2008
The Colombo Stock Exchange (CSE) listed company, Singalanka Plc has halted its trading at the floor due to issues pertaining to the audited financial statements submitted by the company to the CSE, its sources told the Daily News.

Chairman, accountant leave country:

According to market sources, there were issues pertaining to the audited financial report submitted to the CSE which has lead to the suspension of its trading. The company is also believed to be liquidated and the Chairman of the company has also left the country.

The company is a Sri Lankan based company engaged in the manufacturing and sale of sulfuric acid and aluminum sulphate. It was ordered to cease operations when the Additional District Judge Homagama issued an injunction in 1996.

The company has not had many transactions as the only income is the rental and the only out-goings have been the payment of the salary to a few employees, legal fees and related expenses.

It is also said that a company accountant K. Keetheswaran, who appears to have left for the USA, has been manipulating the company’s accounts for the period 2001/2002 to 2007/08.

According to CSE sources the Board of the company was unaware of this matter until it was brought to its notice by the CSE. The trading of shares has been suspended due to issues pertaining to the questionable financial statement and the annual report of the company.

Singalanka was incorporated as a Limited Liability Company and listed in the 1982. The operational plant is located at Habarakada Road, Ranala while the register office is at the Rio Building at Kumaran Ratnam Road, Colombo.

Even though the company was not conducting any activities in the aftermath, the Board decided not to close down the company and instead continued renting its Ranala property of nearly five acres to a warehouse to be used by Ceylon Biscuits Ltd.

The operations of the company has ceased and the Chairman and the accountant have left the country.

Source: DAILY NEWS
Author: Hiran H.SENEWIRATNE