Standards Monitoring Board directs Agalawatte Plantations to re-audit 2014 accounts

Monday, 3 October 2016 00:01 -     - {{hitsCtrl.values.hits}}

Agalawatte Plantations Plc has been directed to re-audit its 2014 accounts by the Sri Lanka Accounting and Auditing Standards Monitoring Board.

The Board didn’t give reasons for its directive but it is believed that it is linked to matters arising from the ongoing battle of siblings in Mackwoods, the owners of Agalawatte Plantations Plc.

In its directive, SLAASMB said at its Board Meeting on 27 September that it took the resolution by virtue of the powers vested in it.

Agalawatte has been directed to publish and circulate copies of the re-audited financial statements for the year ended 31 December 2014 to shareholders. 

The company has been given 14 days to inform SLAASMB by which time Agalawatte will comply with the directive.

Agalawatte Plantations’ auditors are Hulugalle Samarasinghe & Co., Chartered Accountants. In the 2014 original annual report, it gave a true and fair view of the accounts of Agalawatte and they had been presented in accordance with SLAASMB. 

The auditor’s remuneration was Rs. 2.5 million (Group Rs. 2.8 million), up from Rs. 2 million (Group 2.3 million) in FY13.

The Audit Committee comprised F. L. Fonseka, FCA, FCMA (UK), CGMA, MBA (Sri J) - Chairman (Non–Executive Director), S.N. Guneratne, FIPM, (Independent Non–Executive Director) and R.T. de Sylva, FIPM (Independent Non–Executive Director).

In FY14, the company’s turnover was down by 10% to Rs. 1.9 billion and the Group figure was down by 8% to Rs. 2.28 billion. The after tax loss at the Company level was Rs. 225 million against a profit of Rs. 15 million in FY13 and at the Group level the loss was Rs. 189 million in comparison to a profit of Rs. 14 million.

Agalawatte Plantations Plc Chairman Dr. Chris Nonis in his review said: “The year 2014 was an extremely challenging year for the plantation sector and for the company.”