FRIDAY, 18 MARCH 2011 10:58
By Jithendra Antonio
Four listed oil palm companies were caught violating financial reporting rules, in a review of 127 listed companies by the Securities and Exchange Commission (SEC), a surveillance report disclosed.
“Oil Palms Sector carries the highest percentage of violations sector wise” SEC said in its Financial Reporting Surveillance review that was carried out, studying the Balance Sheet dates representing 31st March 2009, 31st December 2009 and 31st March 2010.
Up to date Colombo Stock Exchange has only five companies listed under the Oil Palms sector including Selinsing PLC (SELI), The Bukit Darah PLC (BUKIT), Shalimar (Malay) PLC (SHAL), The Indo Malay PLC (INDO) and The Good Hope PLC (GOOD) owned by Carsons Group (CARS).
Accordingly, SEC highlighted that four oil palm companies that were reviewed have violated the financial reporting by 80%, whilst two stores and supplies companies along with 8 hotels and travel sector companies too had violated rules by 38% with another three trading companies violating the financial reporting standards at the 25% range.
“We found violations and non-compliances with SLAS, Listing Rules and Companies Act. It was observed that SLAS 30, SLAS 18 and section 7.6 and 7.10 of the Listing Rules were mostly violated.” SEC further said in its report.
The report also pointed out that companies in large had violated the SLAS Rules including SLAS 03 with regards to Presentation Of Financial Statements, SLAS 18 related to Property, Plant & Equipment, SLAS 30 regards to Related Party Disclosures and many others.