The Financial Statements are prepared in compliance with the Sri Lanka Accounting Standards (SLFRS/LKAS) issued by The Institute of Chartered Accountants of Sri Lanka, the Companies Act No. 07 of 2007 and the Regulation of Insurance Industry Act No. 43 of 2000 as amended and Directions issued thereunder relating to Financial Statement formats and disclosure of information.
The Accounting Policies used in preparation of the Consolidated Financial Statements are appropriate and consistently applied, except unless otherwise stated in the Notes accompanying the Financial Statements. There are no deviations from the prescribed Accounting Standards in their adoption.
Comparative information has been reclassified wherever necessary to comply with the current presentation. Significant accounting policies and estimates that involved a high degree of judgement and complexity were discussed with the Audit Committee.
The Board of Directors of the Company is responsible for preparation and presentation of these Financial Statements which give a true and fair view of the financial performance and the position of the Company. The estimates and judgements relating to the Financial Statements were made on a prudent and reasonable basis.
To ensure this, the Company has taken proper and adequate care in installing a system of internal control and accounting records, which are reviewed, evaluated and updated on an ongoing basis.
All accounting controls are continually updated to ensure prudence and completeness, prevention and detection of fraud and other irregularities. This ensures accounting records are free from errors and omissions. The internal control system in place functions properly and it is regularly evaluated. All procedure manuals are updated whenever necessary and accessible to all the staff.
The Internal Auditors of the Company have conducted periodic audits to provide reasonable assurance that the established policies and procedures of the Company have been consistently followed. However, there are inherent limitations that should be recognised in weighing the assurances provided by any system of internal controls and accounting.
The Financial Statements of the Company for the financial year end of 31 December 2016 were Audited by Messrs Ernst & Young and the Financial Statements of the subsidiary companies were audited by the appointed Auditors.
The Audit Committee of the Company meets once in a quarter with the Internal Auditors and the Independent Auditors when necessary to review the manner in which these Auditors perform their responsibilities and to discuss major variations or observations, internal control and financial reporting issues. To ensure complete independence, the Independent Auditor and the Internal Auditors have full and free access to the members of the Audit Committee to discuss any matter of substance.
Director/ Chief Financial Officer
23 February 2016