Sri Lanka regulator orders audit of Blue Diamonds Jewellery over fraud complaint
Feb 12, 2016 18:25 PM GMT+0530 | 1 Comment(s)
ECONOMYNEXT - Sri Lanka's Securities and Exchange Commission has ordered an audit of the books of Blue Diamonds Jewellery Worldwide Plc, over allegations of accounting fraud and mis-use of funds.
SEC said shareholders and investors have alleged that September quarter accounts are misleading investors and money raised from a recent rights issue had been mis-used for the benefit of related parties.
SEC had ordered Ernst and Young, an accounting firm to audit the books of Blue Diamonds Jewellery to probe where the rights issue money has been spent, uncover all related party transaction and find whether the accounts complied with Sri Lanka's accounting standards.
SEC had also order directors and the Blue Diamonds to open their books and provide information asked for by the auditor.
Shares of Blue Diamonds Jewellery Worldwide, which manufactures and exports diamond studded gold jewellery, last traded at one rupee on the Colombo bourse.(Colombo/Feb12/2016 - updated)