FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka


Submit PostSubmit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post



Latest topics

» Guardian Investment Trust (GUAR) could Sky Rocket
by Kipling Today at 8:59 am

» GLAS will be winner with Super Gain.
by invest thinker Today at 3:35 am

» PANASIAN POWER PLC (PAP.N0000)
by vijay singh Today at 2:26 am

» Maharaja's Advice
by madukp Today at 1:17 am

» Millennial Capital Youtube Channel
by MillennialC Yesterday at 11:54 pm

» Investor sentiment - will there ever be a recovery?
by xhunter Yesterday at 10:50 pm

» Everybody talks about huge selling. That means there are buyers in the market to buy these shares. Stock market for beginners
by Asoka Samarakone Yesterday at 9:17 pm

» Personal Loans in Sri Lanka from Hatton National Bank
by onenine87 Yesterday at 8:34 pm

» Daily Foreign Transactions
by Pradeep90 Yesterday at 6:51 pm

» Has the CSE reached the peak actually in January?
by FireandWater Yesterday at 6:10 pm

» WindForce Limited IPO
by ishanel2007 Yesterday at 5:44 pm

» Capital Savings Account with high interest rates from HNB Sri Lanka
by menasros Yesterday at 5:05 pm

» Regular Savings Account with benefits from HNB Sri Lanka
by menasros Yesterday at 4:36 pm

» Get Housing Loans |Hatton National Bank - Sri Lanka
by menasros Yesterday at 4:16 pm

» Blossom March
by samaritan Yesterday at 3:59 pm

» New committee to fast-track 289 projects
by judecroos Yesterday at 3:57 pm

» 'Cabraalnomics' vs 'Wijenomics'
by samaritan Yesterday at 3:52 pm

» AGSTAR PLC (AGST.N0000)
by Mr. X Yesterday at 11:15 am

» DIPD/HAYC/HAYL
by Wickyz Yesterday at 11:09 am

» ACL post share split trading and the future potential
by sheildskye Yesterday at 11:08 am

EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

CHRONICLE™ NEWS PRODUCTS

FINANCIAL CHRONICLE™

Views & Reviews, Analysis, Evaluations, Discussions, Gossip and Hot Tips relating to Sri Lankan companies listed on the Colombo Stock Exchange (CSE)
Contribute




DAILY CHRONICLE™

Latest news and articles published in Newspapers, Websites, Blogs and other online news sites relating to business and investments in Sri Lanka
Contribute



ECONOMIC CHRONICLE™

This is a section that provide news, views, analysis, predications relating to Political and Socio-Economic factors and how such activities affect the Stock Market and other economic activity of the Country.

Contribute




EXPERT CHRONICLE™

This is an exclusive section for Expert Articles which will help member to share knowledge through comments and responses of the members. All members are allowed to reply and make comments to these articles.

Contribute


Submit Post


CHRONICLE™ YouTube

Youtube Videos and other visual presentations relating Stock market and other investment advise submitted by members or other contributors.

Contribute


Submit Post


කොළඔ කොටස් වෙළඳපොළේ වංශකථාව
කොළඔ කොටස් වෙළඳපොළේ ලැයිස්තුගත සමාගම් කොටස් ගැන තොරතුරු¸විශ්ලේෂණ¸සාකච්ඡා¸ කටකතා¸රසකතා යන සියල්ල අපේම සිංහලෙන් කතා කළ හැකි ‘කතා මණ්ඩපය’

Contribute

Twitter Feeds
POPULAR COMPANIES
A

ABANS ELECTRICALS PLC

ACCESS ENGINEERING PLC Hot

ACL CABLES PLC

ACL PLASTICS PLC

ACME PRINTING & PACKAGING PLC

AGSTAR PLC

AITKEN SPENCE HOTEL HOLDINGS PLC

AITKEN SPENCE PLC

ANILANA HOTELS AND PROPERTIES PLC

ARPICO INSURANCE PLC

ASIA ASSET FINANCE PLC

ASIA CAPITAL PLC

B

BAIRAHA FARMS PLC

BALANGODA PLANTATIONS PLC

BIMPUTH FINANCE PLC

BLUE DIAMONDS JEWELLERY WORLDWIDE PLC

B P P L HOLDINGS PLC

BROWNS BEACH HOTELS PLC

BROWNS INVESTMENTS PLC

C

CARGO BOAT DEVELOPMENT COMPANY PLC

CENTRAL INDUSTRIES PLC

CEYLON COLD STORES PLC

CEYLON GRAIN ELEVATORS PLC Hot

CEYLON TEA BROKERS PLC

CEYLON TOBACCO COMPANY PLC

CHEVRON LUBRICANTS LANKA PLC

COLOMBO FORT LAND & BUILDING PLC

COMMERCIAL BANK OF CEYLON PLC

CITRUS LEISURE PLC Hot

COMMERCIAL CREDIT AND FINANCE PLC

D

DANKOTUWA PORCELAIN PLC

DFCC BANK PLC

DIALOG AXIATA PLC

DIALOG FINANCE PLC

DIPPED PRODUCTS PLC

DISTILLERIES COMPANY OF SRI LANKA PLC

DUNAMIS CAPITAL PLC

E

EAST WEST PROPERTIES PLC Hot

EASTERN MERCHANTS PLC

EXPOLANKA HOLDINGS PLC

E-CHANNELLING PLC

F

FIRST CAPITAL HOLDINGS PLC

G

GALADARI HOTELS (LANKA) PLC

GUARDIAN CAPITAL PARTNERS PLC

H

HATTON NATIONAL BANK PLC

HAYLEYS PLC

HAYLEYS FABRIC PLC

HAYLEYS FIBRE PLC Hot

HEMAS HOLDINGS PLC

HIKKADUWA BEACH RESORT PLC

HNB ASSURANCE PLC

HVA FOODS PLC

J

JANASHAKTHI INSURANCE COMPANY PLC

JOHN KEELLS HOLDINGS PLC Hot

JOHN KEELLS HOTELS PLC

L

LANKA ASHOK LEYLAND PLC

LANKA IOC PLC

LANKEM CEYLON PLC

LANKEM DEVELOPMENTS PLC

LAUGFS GAS PLC

LAUGFS POWER LIMITED

LOLC FINANCE PLC

LOLC HOLDINGS PLC

LUCKY LANKA MILK PROCESSING COMPANY PLC

M

MELSTACORP PLC

N

NATIONAL DEVELOPMENT BANK PLC

NATION LANKA FINANCE PLC

NESTLE LANKA PLC

O

ORIENT FINANCE PLC

OVERSEAS REALTY (CEYLON) PLC

P

PANASIAN POWER PLC

PEOPLE'S LEASING & FINANCE PLC

PIRAMAL GLASS CEYLON PLC

PRIME FINANCE PLC

R

RAIGAM WAYAMBA SALTERNS PLC

RENUKA AGRI FOODS PLC

RENUKA CAPITAL PLC

RENUKA HOLDINGS PLC

RICHARD PIERIS AND COMPANY PLC

RICHARD PIERIS EXPORTS PLC Hot

ROYAL CERAMICS PLC

S

SAMPATH BANK PLC

SEYLAN BANK PLC

SIERRA CABLES PLC

SINGHE HOSPITALS PLC Hot

SMB LEASING PLC

SOFTLOGIC HOLDINGS PLC

SOFTLOGIC LIFE INSURANCE PLC

SRI LANKA TELECOM PLC

SWISSTEK (CEYLON) PLC Hot

T

TEEJAY LANKA PLC

TESS AGRO PLC

THREE ACRE FARMS PLC

TOKYO CEMENT COMPANY (LANKA) PLC Hot

U

UNION BANK OF COLOMBO PLC

V

VALLIBEL FINANCE PLC

VALLIBEL ONE PLC Hot

VALLIBEL POWER ERATHNA PLC

W

WASKADUWA BEACH RESORT PLC


You are not connected. Please login or register

FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ » CB-appointed external auditors for finance, leasing companies

CB-appointed external auditors for finance, leasing companies

Go down  Message [Page 1 of 1]

CSE.SAS

CSE.SAS
Global Moderator
By Bandula Sirimanna

Finance and leasing companies (non-banking financial institutions –NBFIs) will henceforth be compelled to use external auditors hand-picked by the Central Bank (CB), official sources said.These companies will not be permitted to select their own external auditors.
The move comes after the monetary regulator began cracking the whip over weak corporate governance in a majority of finance and leasing companies.

This is a step forward from the CB panel of 8-10 external auditors for the banking sector, which has been in existence over the years.

Under the move which should also ‘interest’ the Securities and Exchange Commission (SEC) in assigning independent auditors to listed companies, the CB wants to ensure clarity in financial reporting in the interest of wider financial system stability.

Ironically, the move has been welcomed by most finance companies. Chairman of the Finance Houses Association of Sri Lanka Kamal J. Yatawara, who is also the Director/CEO of The Finance Company told the Business Times that an external auditor must have independence when reviewing a company’s financial statements and the auditor cannot have any close ties with the company. He stressed the need of monitoring the viability of these institutions, although their asset base accounts for just 4.8% of total financial sector assets.

In newspaper advertisements this week, the CB called for expressions of interest from audit firms. They would be selected to the panel of qualified external auditors for the 57 NBFIs which include 43 finance companies and 14 leasing companies and examine the financial performance of these companies and its compliance with the law, a senior CB official told the Business Times.

Another objective is to direct these financial institutions to practise better auditing and accounting standards and follow rules and regulations set out by the regulator.The CB official said auditors of some companies were used to cook up figures to hide the true financial position thereby misleading the directors, a frequent complaint by minority shareholders in other listed companies.
This was one of the reasons for the collapse of some finance companies in the recent past, he revealed.

Shirley Perera, a former Association Chairman and Deputy Chairman Central Investments and Finance Ltd said that auditors of some finance and leasing companies were not fit to be auditors.These companies employed small audit firms without experience, facilities and adequate staff and they lacked the capacity to handle vast volume of accounts and financial transactions, he said.

The CB move, he added, would help review and verify the company’s financial statements to form an opinion about the company’s financial statements. He noted that the change of external auditors doesn’t happen regularly in finance and leasing companies.
The Monetary Board’s decision to appoint external auditors for finance and leasing companies is very prudent, he said. Managing Director, Abans Finance and another former Association chairman, Kithsiri Wanigasekera said the practice of deploying ill-reputed external auditors by some finance companies will have to stop with the CB initiative. Under the Finance and Banking Act auditors should be rotated every five years but this practice is not followed at present, he said.

Director CEO of Asia Asset Finance Ltd Rajiv Gunawardena said that the finance companies will able to maintain a better uniformity and high accounting standards under the new scheme. This is a welcome move towards implementing International Financial Reporting Standards (IFRS), he said. Given the responsibility of finance and leasing companies, it is important to ensure that the company can function as a going concern and, re-pay the depositors’ funds as and when needed.

The auditors’ opinion lends credibility to the financial statements and promotes confidence in the system, he said.
http://www.sundaytimes.lk/120624/business-times/cb-appointed-external-auditors-for-finance-leasing-companies-3867.html

K.Haputantri

K.Haputantri
Co-Admin
CB-appointed external auditors for finance, leasing companies
By Bandula SirimannaView(s): 128

Finance and leasing companies (non-banking financial institutions –NBFIs) will henceforth be compelled to use external auditors hand-picked by the Central Bank (CB), official sources said.These companies will not be permitted to select their own external auditors.
The move comes after the monetary regulator began cracking the whip over weak corporate governance in a majority of finance and leasing companies.

This is a step forward from the CB panel of 8-10 external auditors for the banking sector, which has been in existence over the years.
Under the move which should also ‘interest’ the Securities and Exchange Commission (SEC) in assigning independent auditors to listed companies, the CB wants to ensure clarity in financial reporting in the interest of wider financial system stability.

Ironically, the move has been welcomed by most finance companies. Chairman of the Finance Houses Association of Sri Lanka Kamal J. Yatawara, who is also the Director/CEO of The Finance Company told the Business Times that an external auditor must have independence when reviewing a company’s financial statements and the auditor cannot have any close ties with the company. He stressed the need of monitoring the viability of these institutions, although their asset base accounts for just 4.8% of total financial sector assets.

In newspaper advertisements this week, the CB called for expressions of interest from audit firms. They would be selected to the panel of qualified external auditors for the 57 NBFIs which include 43 finance companies and 14 leasing companies and examine the financial performance of these companies and its compliance with the law, a senior CB official told the Business Times.

Another objective is to direct these financial institutions to practise better auditing and accounting standards and follow rules and regulations set out by the regulator.The CB official said auditors of some companies were used to cook up figures to hide the true financial position thereby misleading the directors, a frequent complaint by minority shareholders in other listed companies.
This was one of the reasons for the collapse of some finance companies in the recent past, he revealed.

Shirley Perera, a former Association Chairman and Deputy Chairman Central Investments and Finance Ltd said that auditors of some finance and leasing companies were not fit to be auditors.These companies employed small audit firms without experience, facilities and adequate staff and they lacked the capacity to handle vast volume of accounts and financial transactions, he said.

The CB move, he added, would help review and verify the company’s financial statements to form an opinion about the company’s financial statements. He noted that the change of external auditors doesn’t happen regularly in finance and leasing companies.
The Monetary Board’s decision to appoint external auditors for finance and leasing companies is very prudent, he said. Managing Director, Abans Finance and another former Association chairman, Kithsiri Wanigasekera said the practice of deploying ill-reputed external auditors by some finance companies will have to stop with the CB initiative. Under the Finance and Banking Act auditors should be rotated every five years but this practice is not followed at present, he said.

Director CEO of Asia Asset Finance Ltd Rajiv Gunawardena said that the finance companies will able to maintain a better uniformity and high accounting standards under the new scheme. This is a welcome move towards implementing International Financial Reporting Standards (IFRS), he said. Given the responsibility of finance and leasing companies, it is important to ensure that the company can function as a going concern and, re-pay the depositors’ funds as and when needed.

The auditors’ opinion lends credibility to the financial statements and promotes confidence in the system, he said.

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum