CSE lifts suspension ban on Adam Investments

The Colombo Stock Exchange (CSE) announced that Adam Investments Plc has resolved the matters giving rise to the Qualified Opinion in the Independent Auditors Report on the Audited Financial Statements for the year ended 31 March 2017, in terms of Rule 7.5 (d) (I) (9) of the CSE Listing Rules (Enforcement Rules).

Accordingly, the Trading Suspension of the securities of the company (AINV.N0000) will not be effective from 29 October, the CSE said, issuing a statement on enforcement action in terms of its listing rules. 

However, the CSE said that Adam Investments Plc would remain on the ‘Watch List’ due to non-submission of its annual report for the year ended 31 March 2018.

Issuing a disclosure, Adam Investments Plc said it had submitted the audited financial statements to the CSE for the year ended 31 March 2017 on 19 April together with the financial statements audited by A. I. Macan Markar & Co. The audit opinion of the said audited financial statements has been given with a Qualified Opinion for the Group as follows.

“For the financial year ended 31 March 2015 and 31 March 2016, Adam Metals Ltd., a major subsidiary of Adam Investments Plc, has been consolidated based on management accounts due to unavailability of adequate documents and information to carry out the statutory audit. However, the Directors of the company, Adam Metals Ltd., decided to finalise the audit for the year ended 31 March 2017 after making adjustments to the opening balances as at 1 April 2016. Although we have carried out additional audit procedures, we were unable to determine whether the opening balances of financial statements for the year ended 31 March 2017 are free from material misstatement.”

On 18 October the company received a letter from the auditors A. I. Macan Markar & Co. confirming that the effect of opening balance on the financial statements as a whole of Adam Metals Ltd. is immaterial, and therefore, there will be no Audit Qualification in the financial statements of the Adam Metals Ltd. with regard to the opening balances. Consequently the auditors A. I. Macan Markar & Co. also confirm that there will be no Audit Qualification in the group financial statements of Adam Investments Plc with regard to the opening balances of Adam Metals Ltd.

“Based on the above, we the undersigned, who are the directors of Adam Investments Plc, hereby declare and confirm that the matters giving rise to the modified audit opinion in the audited financial statements for the year ended 31 March 2017 are resolved,” the statement said.