Colombo, 02 September 2026 – PMF Finance PLC, a company listed on the Colombo Stock Exchange (CSE), today announced that its independent auditors have issued a qualified audit opinion on the company’s financial statements for the fiscal year ended 31 March 2026. The corporate disclosure, made in compliance with Rule 7.5(d)(ii)(Axl5) of the CSE Listing Rules, details the bases for the qualification and the company’s plan to address the identified issues.
Bases for the Qualified Audit Opinion
According to the official communication to the CSE’s Chief Regulatory Officer, Ms. Nilupa Perera, the independent auditors highlighted several key areas contributing to their qualified opinion. These include:
- An unreconciled difference of LKR 51.4 million as at 31 March 2026 between the margin trading portfolio balance and the corresponding general ledger balance. While management performed a partial reconciliation and recorded adjustments, auditors were unable to obtain sufficient evidence regarding its completeness and accuracy.
- Insufficient audit evidence to verify the existence, accuracy, and recoverability of LKR 12.7 million initially recognized within other assets, for which a provision was subsequently recorded.
- Challenges in assessing the completeness and accuracy of an amount of LKR 10.4 million recognized within other liabilities.
- An inability to complete necessary audit procedures concerning manual journal entries recorded by management, preventing the determination of potential adjustments required for these entries and related balances in the financial statements.
Quantified Impact on Financial Performance
PMF Finance PLC has provided a quantified impact analysis based on the qualified audit opinion contained in the Independent Auditor’s Report. When compared to the reported balances in the financial statements, the cumulative impacts are:
- 5.39% on profit before tax.
- 1.02% on net assets.
- 0.15% on total assets.
- 0.68% on total income.
- 3.19% on earnings per share.
Despite these figures, the Board of Directors and Management of PMF Finance PLC maintain the view that the impact of these qualifications is not material in relation to the company’s overall financial position and size.
Company’s Resolution Strategy
To address the matters raised by the auditors, PMF Finance PLC has outlined a clear resolution path. The company states that appropriate provisions have already been made for the balances referred to in the audit qualification, with the resulting impact recognized in the Statement of Profit or Loss for the financial year 2025/2026. These balances primarily relate to prior years, indicating a proactive approach to rectifying historical discrepancies.
Furthermore, PMF Finance PLC intends to resolve this matter through an independent audit, with the process expected to be completed within the next six months. The company has affirmed its commitment to proceeding with the resolution process in strict accordance with the Colombo Stock Exchange’s listing rules, ensuring full transparency and compliance.
Investors and stakeholders will be closely watching PMF Finance PLC’s progress in resolving these audit qualifications, which are crucial for maintaining confidence in its financial reporting and corporate governance standards.
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