Softlogic share stays suspended

Softlogic PLC recently submitted its 2022 annual report to the Colombo Stock Exchange (CSE), but the share will still be suspended as the company has not sent its quarterly reports, officials said.

"Softlogic Holdings PLC submitted the Annual report for 2022 as undertaken. However, as the quarterly reports have not been submitted as of date, the shares of the company shall remain suspended from trading,” an official told the Business Times.

Softlogic auditors Ernst and Young have said that the group has made a net loss of Rs. 5,277.79 million for the year ended 31 March 2022 and has accumulated losses amounting to Rs. 26,397.40 million as of 31 March 2022. The group’s current liabilities exceeded its current assets by Rs. 45,857.51 million as of 31 March 2022.

As stated in Note 5, these events or conditions indicate that a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern without the proposed activities by management and the continued support of the lenders.

As of the reporting date, the group reported total interest-bearing borrowings of Rs. 92.3 billion, of which Rs.53.3 billion was reported as current liabilities and the balance Rs. 39 billion, as non-current liabilities.

The annual report quoted its Chairman Ashok Pathirage as saying the group will shed its idle assets, review its internal processes, and won't hesitate to make decisions to enhance its liquidity and financial position. “Investments in key areas are being progressed in anticipation of an economic recovery and credible debt reduction strategy. At the same time, to add value to the promising sectors of the group, we will not be able to reduce our stake in any one of our subsidiaries should opportunities arise to make the group more agile to face the uncertain future,” he said.