Trading suspension slapped on Nawaloka Hospitals shares

The trading to Nawaloka Hospitals PLC shares has been suspended with effect from June 16, 2023 due to Disclaimer of opinion in the Independent Auditor’s Report on the company’s annual report for the year ended  March 31, 2022.

The Colombo Stock Exchange said the suspension was slapped under Rule 7.5.(d) (i) of the CSE Listing Rules.The shares of the company had already been transferred to CSE’s Watch List with effect from December 15, 2022 due to the disclaimer of opinion.

KPMG Sri Lanka has refused to provide an opinion on the annual financial statements of Nawaloka Hospitals PLC due to the latter’s failure to account for billions worth of revenues, receivables and payables among other discrepancies.Issuing the independent auditor’s report on the group’s financial statements for the year ended March 31, 2022, KPMG Sri Lanka, which acted as the external auditor for Nawaloka Hospitals, pointed at a number of issues which made the company’s reported figures opaque.

KPMG said it prevented them from arriving at an opinion on whether the company’s published financial statements offered a true and fair view.  As a result, KPMG issued a ‘disclaimer opinion’ on the financial statements of the company.

Among the leading issues in Nawaloka Hospital’s annual financial statements was the absence or the inability of the company’s officials to provide the auditors with the necessary supporting documents to account for several billions of rupees of revenue.