Golden Key: Did auditors adhere to standards?

In connection with the Golden Ken Credit Card Company Ltd., saga, the Director General of the Sri Lanka Accounting and Auditing Standards Monitoring Board (SLAASMB) has made a statement that the company had failed to file the accounts with the Monerary Board. Very convenient, but this is not acceptable to the deposit holders.

Is it too late to obtain a set of accounts now and ascertain whether the auditors have adhered to auditing standards when issuing their last audit report? The auditors concerned continue to hold membership in the premier accountancy body in Sri Lanka.

However, there is a leading finance company within the Ceylinco Group a quoted company, which boasts of a very high deposit base whose accounts are filed with SLAASMB.

This company has changed the auditors last year and many depositors are of the view even the new auditors are not competent to handle this audit considering the volume of transactions of the finance company.

As a quoted company it is mandatory for this finance company to file annual accounts with the SLAASMB. It is the responsibility of the SLAASMB to take appropriate action if the auditors have failed to comply with the relevant auditing standards and further report the auditors to the Institute of Chartered Accountants for cancellation of the auditor’s practicing licence.

It will be interesting to see whether this is likely to happen. If not the depositors in this Finance Company would be in a position to hold the Monerary Board officials responsible for negligence of their duties. Probably the Central Bank too should take note of this responsibility of the Monitoring Board.

The depositors should report the professionals with accountancy qualifications in collapsed finance companies including Golden Key to the respective professional accountancy bodies so that the membership of these Accountants can be cancelled.

As accountants they know exactly what is happening with the finances of the company.

The shareholders of the company should question at the AGM the basis on which the new auditors have been appointed by the Chairman and the board of directors. It is alleged that the books of accounts of Golden Key had been falsified.

The depositors and the shareholders of this finance company are mindful that the finance company and Golden Key had common directors.

The investors watch with interest for how long the Securities & Exchange Commission will allow the individuals who served as directors in Golden Key to serve as directors of companies quoted in the Colombo Stock Exchange.

All the regulatory bodies are in hibernation whilst these directors continue to draw huge salaries whilst running down the companies they (mis) manage to the ground.

Concerned deposit holder
 

Charity begins at home

Most of the depositors at the Golden Key Credit Card Co. are senior citizens, whose children are abroad, deposited a lump sum for their parents, to fulfil this obligations.

Some others who were in the mercantile sector, not entitled to any pension for their existence, dumped all their EPF, ETF and gratuity payments etc at Golden Key, because of the credit facility and the high interest it offered.

Above all the trust in the golden name of generous Dr. Lalith Kotalawela. After the winding up of the company few men lucky to get their deposits refunded, but less 2-3 months interest. We appreciate his charity work, but not at the expense of others.

For the time being if he stops all other charity work, and let charity begins at home by paying the interest due to the depositors firstly to those whose monthly interest is not liable to income tax.

Most of the depositors are in their last lap as Dr. Kotalawela. So give the devil his due promptly and let charity follow. We believe he will not get tarnished his golden name, because of a few culprits at Golden Key.

Anslem Gunasekara, Wattala