by Nishel Fernando
Janashakthi Finance PLC has disclosed that its audited profit for the year ended March 2026 fell to Rs.64.7 million, 84 percent below the Rs.402.7 million reported in its interim accounts, after its auditors qualified the financial statements over an unreconciled debit balance of Rs.270.5 million.
The company has provided for the full amount, yet the auditors were unable to obtain sufficient evidence on the nature, accuracy, classification and recoverability of the balance, or on whether the provision itself is adequate. More significantly, the company told the Colombo Stock Exchange that any further impact on profit, assets or earnings per share cannot presently be reliably quantified.
Submit Your Press Release
Get your company news, announcements, launches, appointments and events in front of a wider audience.
Nothing in the disclosure suggests wrongdoing, and an unreconciled balance can arise from a range of accounting and operational lapses. Even so, the episode arrives only months after the National Development Bank PLC (NDB) case, where the initial estimate of the loss grew many times over within days, and it underlines why reconciliation failures in deposit-taking institutions deserve closer scrutiny rather than a footnote.
Investors and depositors are therefore left with several unanswered questions. They do not know what the balance represents, how long it remained unreconciled, when it was detected, or why it did not surface before the interim accounts were published. With the company’s June quarter statements built on unaudited March figures that overstated equity by Rs.429.5 million, the answers matter for the current year as much as the last.
The company has said it intends to complete remedial action within the timeframe stipulated under the Listing Rules, subject to verification by its external auditors. How transparently that outcome is communicated will shape confidence in the institution far more than the provision itself.
