By Jithendra Antonio
Hayleys MGT Chairman Mohan Pandithage in the company’s financials claims that the company’s order book remains healthy, despite interim negatives.
In his review he highlights discrepancies between the physical balance of inventory and financial records, writing down a part of inventory to its net realizable value and a correction to receivables which was overstated.
In the lately published annual report of Hayleys MGT, the Chairman notes that the timely intervention and quick response by the present management to such discrepancies have enabled the management to arrest the negatives,
It was reported to the Mathugama Magistrate that vast quantities of fabric were unaccounted for, had been sold illegally, that accounts had been falsified and numerous other allegations were currently being investigated into at present.
Since December 2010, the preliminary investigations pertaining to the fraud and the forensic audit were conducted under the direct guidance and supervision of Jeevantha Jayatilake (Attorney-at-Law) and his legal team on behalf of Hayley’s MGT, and the gathered evidence was thereafter handed over to the Commercial Crimes Division of the CID, who recorded numerous witness statements and gathered more evidence which was produced before the Mathugama Magistrate.
Sgt. Mahroof of the CID was supported in his prosecution by President’s Counsel Tilak Marapana with Jeevantha Jayatilake (Attorney-at-Law) ,Janaka Marapana and Tazio Ratnayeke (Attorneys-at-Law) who appeared on behalf of the Hayley’s Group of Companies. Tilak Marapana P.C. laid emphasis that this is a defrauding of a public quoted company and that extensive and detailed investigations had been conducted over a period of six months, into every aspect since the initial stock loss was discovered by the Hayley MGT Board.
This is the latest development in the investigation by Hayleys MGT Knitting Mills Plc which suffered its first ever loss in 2010/11 financial year following an estimate approximately Rs. 700 million provisioning. As per provisional results released, Hayleys MGT Knitting Mills reported a Rs. 800 million loss in comparison to a re-stated profit figure of Rs. 367 million in 2009/10.
In the B-Report presented to the Mathugama Magistrate, the CID revealed that extensive evidence had been found to implicate the chief suspect in the fraud.
The Mathugama Magistrate refused to grant bail to Bandula Weerasinghe and Roshan Gunaratne, and were placed in remand custody until June 13.
source - www.dailymirror.lk
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