May 14, Colombo: Sri Lanka's leading cable manufacturer Sierra Cables has requested from the Colombo Stock Exchange (CSE) to suspend the trading of its shares.
A similar request has been made to the market regulator Securities Exchange Commission (SEC), the company said in a disclosure to CSE.
The Board of Directors of the company announced that they have been informed of significant misstatements in the financial statements of the company for the years from 2010/2011 up to 2013/14.
The Board said subsequent to the suspicions raised, an inquiry was initiated and the preliminary report by the auditors, KMPG, indicates a discrepancy tentatively amounting to approximately Rs. 172 million between the value of work in progress as reflected by the accounts up to 31 March 2014 and the amounts physically verified.
The auditor has informed that it needs to conduct further investigations into other areas of relevance.
Meanwhile, the Board believes that there could be other significant matters in the accounts, especially, relating to the recording of stocks.
Under the circumstances the Board has requested the CSE to immediately suspend trading until the Company is able to issue a more definitive disclosure on the extent to which the Company's financial statements need correction.
The Board said it will vigorously take all requisite action against those responsible for any improprieties if revealed in the investigation and pledged to keep the shareholders informed.
Sierra Cable, an ISO 9001 certified company, located near Kaduwela manufactures armoured and unarmored cables.