Sri Lanka’s Sierra Cables Finds Rs172mn Fraud!

The Board of Directors of Sri Lanka’s Sierra Cables Plc said a probe had revealed a 172 million gap in its accounts and further investigations were planned.

The Board of Sierra Cables, asked Colombo Stock Exchange to suspend trading in the stock.
The Board in a statement said following suspicious raised, KPMG, an accounting firm, was asked to inquire and its preliminary findings show a 172 million rupee gap in work-in-progress between the March 2014 accounts and a physical verification.

“The Board has been further informed by KPMG that it needs to conduct further investigations into other areas of relevance,” the statement said.

“In the meantime, the Board is of the opinion that there could be other significant matter sin the accounts especially inter alia, in relation to recording of stocks.”

“The Board wishes to sate that it will vigorously take all requisite action against those responsible for any improprieties if revealed in the investigations.

Financial statements in the year 2010/11, 2011/12, 2012/13 and 2013/14 had “significant misstatements,” the statement said.

There had been some above average trading in Sierra Cables share in recent days.

On May 08, 212,000 shares were traded at 1.80 rupees up 10 cents followed by 2.04 million on May 09. On May 12, 17.5 million shares were traded at 2.10 rupees and 5.6 mn shares today.