Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum 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
Sri Lanka Equity Forum
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

සිංහල පරිවර්තනය
Submit Post
Submit Post
Market Place

Add an ad

View all ads

Latest topics

» Double Bottom Reversal
by freeforexsignals2020 Yesterday at 11:56 pm

by Uaecoindubai Yesterday at 11:55 pm

» ගෙවුම් ශේෂය, වාහන බලපත් හා ඩොලරයේ මිල
by ChooBoy Yesterday at 5:59 pm

» Terrorism and its Impact on the Sri Lankan Economy
by ChooBoy Yesterday at 5:41 pm

» Top 10 Small Scale Business ideas & Opportunities in Sri Lanka 2019
by ChooBoy Yesterday at 4:39 pm

» Sri Lanka Equity Market Place
by Sstar Yesterday at 4:36 pm

» Sri Lanka Equity Market Talk
by Sstar Yesterday at 12:23 pm

» Sri Lanka Equity Market Help
by Sstar Yesterday at 12:18 pm

» Why AAIC Should trade above RS.50/-
by wisdom79 Sun May 19, 2019 8:01 pm

» Sri Lanka’s largest pension fund EPF return to Colombo Stocks
by Soilconomy Sun May 19, 2019 6:56 pm

by stockback Sun May 19, 2019 5:20 pm

» Look PAP Amazing company
by Uaecoindubai Sun May 19, 2019 5:13 pm

» Sri Lanka Equity Market Place
by Uaecoindubai Sun May 19, 2019 5:13 pm

by Ahcha Sun May 19, 2019 4:40 pm

» Do not be greedy, rely on small profits Guide to the markets
by Asoka Samarakone Sun May 19, 2019 12:11 pm

» 6 % of EPF funds in stock market
by hammurabi Sat May 18, 2019 3:47 pm

» Weekly Stock Market Roundup
by Insights Equity Sat May 18, 2019 12:54 pm

» EPF Enter Stock Market
by visvajith Sat May 18, 2019 12:20 pm

» UNION BANK (UBC) to be takeover by Union bank of india
by Soilconomy Sat May 18, 2019 8:54 am

» SEC yet to publish its 2017 Annual Report
by ChooBoy Sat May 18, 2019 6:01 am

» EAST Steady at 18
by Chanaka303 Fri May 17, 2019 10:20 pm

» Daily Stock Market Update
by Insights Equity Fri May 17, 2019 6:42 pm

by Winner123 Fri May 17, 2019 1:33 pm

» Hight Profile Selling at EAST
by Miss-Sangeetha Fri May 17, 2019 12:12 pm

» East total Hotel deal value US $ 58 Mn there will be another Dividend, Nahil's family is smart
by karuna2 Fri May 17, 2019 6:48 am

» What is going on with TFC.N0000
by Gihan04 Thu May 16, 2019 11:58 pm

» Sri Lanka's Commercial Bank's deposits surpass landmark Rs 1 Trillion in Q1 2019
by hammurabi Thu May 16, 2019 8:05 pm

» LIOC upward curve
by hammurabi Thu May 16, 2019 7:42 pm

» Maithree pala siresenas next winning chance
by Uaecoindubai Thu May 16, 2019 5:10 pm

by Uaecoindubai Thu May 16, 2019 5:05 pm

» Mahaweli coconut will be listed soon
by Uaecoindubai Thu May 16, 2019 4:57 pm

» BALA can come down to 9/-
by Uaecoindubai Thu May 16, 2019 1:08 pm

» Sri Lanka's tourist industry has debt and tax relief of up to two years????
by Uaecoindubai Thu May 16, 2019 1:08 pm

» BFN slowly slowly unloading
by Uaecoindubai Thu May 16, 2019 1:04 pm

» Dark times - Sampath Bank
by Uaecoindubai Thu May 16, 2019 12:55 pm

» Sampath Bank PLC Rights Issue of Shares @ Rs.136/- p.s
by Uaecoindubai Thu May 16, 2019 10:09 am

by mark Wed May 15, 2019 11:39 pm

» ආස නැද්ද ඔබ?
by reyaz Wed May 15, 2019 3:59 pm

» Reasons for market to crash
by Maharaja Wed May 15, 2019 12:54 pm

by mark Wed May 15, 2019 12:45 pm

» Bitcoin reached 8K while ..
by Uaecoindubai Wed May 15, 2019 11:45 am

by Namal Wed May 15, 2019 5:52 am

» Market will test 4700
by karuna2 Tue May 14, 2019 12:16 pm

You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk » Trading suspension on The Finance looms as firm seeks more time

Trading suspension on The Finance looms as firm seeks more time

Go down  Message [Page 1 of 1]


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics


The Finance Company PLC (TFC) has sought further time from the securities regulator to resolve the serious matters outstanding in its books of accounts marred by omissions and errors, which led the company auditor to issue qualified opinion on its financial statement, last year. 

Last July SJMS Associates, TFC’s auditors, issued a qualified opinion on the firm’s financials for the year ended March 31, 2018 highlighting a range of problematic and grey areas in the books of accounts. 

The concerns ranged from failure to consolidate TFC’s subsidiaries and associate companies in the books of accounts and the company’s ability to remain in business as a going concern due to a large hole in the balance sheet, which is getting further widened with the continuous losses. 

For the year ended March 31, 2018, TFC lost Rs.1.8 billion and had a negative net assets value of Rs.14.5 billion, making going concern a serious issue.
The company neither complies with the directions issued by the Central Bank on minimum core capital requirement nor capital adequacy ratios. 
The Central Bank Governor Dr. Indrajit Coomaraswamy last week delivered a broadside on the country’s financial sector—both bank and non-bank lenders—saying that the regulator would become “brutal” on non-compliers of capital requirements.

He said moratorium on deposits and lending would be imposed until the non-compliers comply or get their licenses rescinded. 
Meanwhile, for the six months ended September 30, 2018, TFC lost Rs.1.6 billion and its balance sheet hole further expanded to Rs.16.1 billion. 
TFC, the former Ceylinco group entity in November last year, sought further nine months from the Securities and Exchange Commission (SEC) to resolve the issues identified by the auditor, but it is yet to respond. 

The company’s listed securities were transferred to the ‘Watch List’ by the Colombo Stock Exchange (CSE) on August 17, 2018 after the audit report was published. 
TFC risks suspension of trading of its securities by the CSE if it fails to resolve the matters outstanding within six months since the Watch List transfer, and the firm further risks its securities being delisted in the event such suspension continued for a period of 12 months. Among the matters highlighted by the auditors were the company’s failure to present consolidated financial statements including those of its subsidiary and associate companies due to the non-availability of financial statements in those companies. 

The auditors have also failed to establish the ownership of the properties occupied by Ceylinco Sussex College, part of TFC, which has mortgaged those properties. The auditors had been unable to ascertain the adequacy of the amount of obligations. 

The banks have gone to courts over recovering of those mortgage loans. 

TFC, which is currently on a five-year revival plan, continues to bleed money even after several attempts to rescue the firm even with the involvement of the Central Bank. 

In 2010, the Central Bank converted 10 percent of the company’s deposits worth Rs.2.0 billion in to non-voting shares and raised another Rs.1.6 billion through a public offer. The Employees’ Provident Fund managed by the Central Bank was also forced to invest in 5.1 million shares. 

TFC share which was trading at Rs.37 in March 2011 is now worth only Rs.2.0.

Back to top  Message [Page 1 of 1]

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