Volume 03 - 2016
Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/12171
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Item Improper Recognition of Foreign Funding for the Stated Capital(Department of Accountancy, University of Kelaniya, 2016) Maheshika, U.P.W.; Sujeewa, G.M.M.Royal (Pvt) ltd is a limited liability company, which was incorporated on the 28thof October 2014. This company is a joint venture company, jointly controlled by Royal international company in India and Royal Ltd in Sri Lanka who has 50% ownership equally. The client’s trading is mainly focused on printing of labels and tags. This case is relating to the foreign funding for the share capital and mainly discusses about the implication of the stamp duty act No 43 of 1982, Inland Revenue act No 10 of 2006 and company act No 07 of 2007.Item Improper Recognition of Commission Income from Importing Vehicles to the Permit Holders as Sales Income(Department of Accountancy, University of Kelaniya, 2016) Meepegama, U.E.; Sujeewa, G.M.M.ABC (Pvt) Ltd as the Sole agent for X kind of vehicles in Sri Lanka is dedicated to servicing the needs of their customer by providing them with a range of vehicles and attending to their requirements with impeccable after sales services. ABC (Pvt) Ltd merged with DEF PLC in the beginning of the last financial year (2013/14). Therefore, they had an objective to show a good performance in this financial year (2014/15). The principal activity of the Company is importing and distribution of brand X kind of vehicles and spare parts and operating workshops for vehicle repairs. Furthermore, sales can be classified in to four main categories, they are, Permit sale of vehicles (Acting as intermediary when importing the vehicles by permit holder) Vehicle sales (Locally purchased and sale ) Sales income earned from repairs Sale of spare parts According to the nature of the sales, company earns high profit margins from the permit sales when compared to the vehicle sales, because the permit sale transactions contain large amount as local handling charges (Referring to the annex – Rs. 2 Mn) which is normally known as “the commission charge”. On the other hand, local vehicle sales of the company earns a slight profit margin since it has vehicle purchase cost in respect to the sale.Item Intended Manipulation of Share Prices(Department of Accountancy, University of Kelaniya, 2016) Nanayakakra, D.D.; Sujeewa, G.M.M.XYZ Limited is a Limited Liability Company incorporated & domiciled in Sri Lanka under the companies Act no.07 of 2007. XYZ Limited is a fully owned subsidiary of PQR Limited. ABC Ltd is a subsidiary of the XYZ Ltd which located in same business place & governed by same directors. The principal activity of the company is providing intermediary and advisory services on financial, investments and other corporate activities and Asset Management services. The company had an investment of Rs. 62 Million in KLM PLC shares (one of their related company incorporated in Maldives). This investment was valued at active market price of 10 Maldives Rufiyaa each. In further inquiries it was noted that the active market has been manipulated by parties within the group with the intention of recording a gain from those shares and to make the company visible as a profit making body to the interested parties of its financials.