ECONOMYNEXT – Sri Lanka’s Guardian Capital Partners has attributed its loss in the first half of this year to impairment charges arising from alleged fraud at an investee firm, Swiss Institute for Service Industry Development (Pvt) Ltd.
The company, part of the Carson Cumberbatch group, reported a loss of Rs29.9 million in the six months to September 2017, compared with a Rs16 million net profit the year before.
For the September 2017 quarter, Guardian Capital Partners (GCP) said net profit was almost Rs7 million, down 13% from a year ago.
Quarterly earnings per share were 27 cents, down from 31 cents the previous year. The share last traded at Rs33.10.
For the six months to September 2017, it reported a loss per share of Rs1.16 compared with EPS of 61 cents the year before.
“The loss recorded was primarily due to an impairment of Rs. 42.1 million made against the investment in Swiss Institute for Service Industry Development (Pvt) Ltd, as reported in Q1, due to an alleged misappropriation of funds in the said investee company,” a managers’ review accompanying the accounts said.
It has said GCP and the other co-investors of the investee company had filed a complaint with the Criminal Investigation Department about alleged misappropriation of funds by the Managing Director and Promoter of the investee company against whom legal proceedings have been initiated by the CID in the Magistrates Court of Colombo.
(COLOMBO, November 17, 2017)