This is not a new development and it has been going on for last 3,4 months.
I am reporting it here for the benefit of those who joined recently and also since it was on the news ( www.ft.lk ) today.
In brief :-
a. As per the above news item it is the biggest fraud in a listed company.
b. Due to the fraud the company (MGT.N000) lost Rs. 625 Mil for 2010/2011 3Q.
c. The company has carried out a physical stock Verification and also checked debtors accounts.
d. Finally it was found that there is a negative discrepancy between the actual inventory and the balance sheet value.
e.Company has recently commenced a Forensic Audit to identify further details
f.A company Director resigned in Nov. 2010 and news was communicated to CSE.
Note : I do not hold any shares of the said company or do not intent to buy any.
We could discuss how and what action is taken by relevant authorities to protect the interests of shareholders as the same could happen in another place.