CIC on Thursday released a revised version of its first quarter net results to the Colombo Stock Exchange in which it has sharply reduced net profit to Rs 186 million from Rs 359 million, raising questions about the ‘extent’ of the mistake on the company’s part. Brokers said the amended results sheet was sent to them by the Colombo Stock Exchange without any comment except to say that this is an amended balance sheet of what was issued on August 12. “I wondered what was amended and checking further found the net profit figure had been corrected and restated,” one broker said.
He noted that a small deviation is negligible, but such material errors were unpardonable. “It is a pretty bad mistake,” he added. CIC prices which shot up after the August 12 announcement of the results, fell as market close on Friday, falling by Rs 0.50 to Rs 44.25. The revised figures were sent to the stock exchange after trading closed on Thursday. The broker said the capital gain on divestment of 36.7% stake in Commercial Leasing by CIC subsidiary Chemanex in May 2008 has been restated as Rs 98 million from Rs 469 million previously (in the August 12 statement of accounts).