Business

Multi Finance permitted trading till 31 December

By Karen Hapuarachchi

 

Multi Finance PLC informed its shareholders that the company has been granted a further extension from the suspension of the company’s trading activities until 31 December 2021, according to a Colombo Stock Exchange (CSE) disclosure.

Accordingly, the company informed that the Securities and Exchange Commission of Sri Lanka (SEC), at the 450th commission meeting held last Wednesday (16), approved the aforesaid extension until the end of 2021, after considering the firm’s request.

Previously, CSE announced that it will suspend the trading activity of Multi Finance on Monday (21), a licensed finance company monitored by the Central Bank of Sri Lanka (CBSL), with effect from 1 July 2021.

Accordingly, the decision to halt the trading activity was influenced by ongoing concerns raised over the company’s Independent Auditor’s Report in the annual report for the year ended 31 March 2019.

Therefore, as per the terms of Rule 7.5. (d) (ii) of the CSE Listing Rules, trading activity of Multi Finance will be suspended unless the company corrects the “non-compliance” mentioned above, on or before 30 June 2021.

Ordinary shares of Multi Finance have been listed in the CSE since July 2011 prior to the company re-registering under the Companies Act No. 7 of 2007 in 2009.

The company also recorded an income of Rs. 297,381,813 for the financial year of 2018/2019 and Rs. 218,656,172 for the financial year of 2019/2020. On the other hand, the net losses recorded after tax was Rs. 63,108,591 and Rs. 141,735,790, respectively.

Incorporated as a limited liability company in 1974 under the Companies Ordinance No. 51 of 1938, Multi Finance PLC was also registered under the Monetary Board of the CBSL in terms of the Finance Business No. 42 of 2011.

Also, it was an approved credit agency under the Mortgage Act No. 6 of 1949 and the Trust Receipts Ordinance No. 12 of 1947.