Colombo, Sri Lanka – 04 September 2026 – PMF Finance PLC has announced a significant corporate development, informing the Colombo Stock Exchange (CSE) of a qualified audit opinion for its financial year ended 31 March 2026. In accordance with CSE Listing Rules, this will result in the company’s securities being transferred to the CSE Watch List, effective 08 September 2026.
The disclosure, made by PMF Finance PLC Company Secretary Sinnathamby Kavitha to Ms. Nilupa Perera, Chief Regulatory Officer of the CSE, details the nature of the qualified audit opinion and the proactive steps the company intends to take to address the matter.
Understanding the Qualified Audit Opinion
A qualified audit opinion indicates that while the financial statements are generally presented fairly, the auditor has identified specific issues that may not comply with generally accepted accounting principles or where insufficient evidence was available. In PMF Finance PLC’s case, the qualification relates to balances from prior years.
According to the disclosure, PMF Finance PLC has already taken remedial steps by making appropriate provisions for these referred balances. The financial impact of these provisions has been duly recognized in the Statement of Profit or Loss for the financial year 2025/2026.
Transfer to Watch List and Remedial Strategy
The transfer of PMF Finance PLC’s securities to the Watch List on 08 September 2026 aligns with Rule 7.5(d)(ii)(A)(5) of the CSE Listing Rules, which mandates such action within five market days of a qualified audit opinion’s issuance.
To resolve the matters giving rise to the qualified opinion, the company has outlined a clear strategy:
- PMF Finance PLC intends to undertake an independent audit to thoroughly address the issues highlighted in the qualified opinion.
- The company anticipates that this independent audit process will be completed within the next six months.
Implications and Investor Safeguards
The corporate disclosure also meticulously details the regulatory implications and the safeguards in place for investors:
- Communication of Deviations: Should there be any deviation from the proposed remedial actions, PMF Finance PLC is obligated to communicate the extent of such deviation to investors through a CSE announcement within one market day of obtaining Board of Directors’ approval for the change.
- Potential Suspension and Delisting: The disclosure warns of severe consequences if the issues remain unresolved. If the matters giving rise to the qualified audit opinion are not rectified within fifteen (15) months from the date of the company’s transfer to the Watch List, trading of its securities will be suspended. Furthermore, if such a suspension continues for a period exceeding twelve (12) months, the securities of PMF Finance PLC will be delisted by the Board of Directors of the CSE, as stipulated by Section 14 of the Listing Rules.
- Resolution Notification: Conversely, if the matters are successfully resolved and independently verified by the auditor while the company’s securities remain on the Watch List, PMF Finance PLC will immediately make an announcement to the market through the CSE.
This comprehensive disclosure by PMF Finance PLC underscores the stringent regulatory environment of the Colombo Stock Exchange and provides transparency to investors regarding the company’s financial standing and its commitment to resolving audit-related concerns. Stakeholders will be keenly observing the progress of the independent audit and the company’s adherence to the stated timelines.
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