The Royal College School Development Society (RCSDS)
Financial Statements for the year ended 31st December 2025
Comments based on the audit report issued by M/s. B.R De Silva & Company (Chartered Accountants) issued on 10th April 2026. (The date of the AGM):
1. The Auditors have dated their audit report as 10/04/2026 which is the date of the AGM. This confirms that the said report was not circulated with the AGM notice.
2. In the 1st page of the audit report issued by the statutory auditor M/s. BR De Silva, they have indicated that they have not been able to express an opinion on the said financial statements, because of the significance of the matters described in the “basis of disclaimer of opinion” paragraph included in the same report.
3. The Auditors have listed the following major very significant items as their reasons to disclaim. Obviously, they (the auditors) have communicated these points to the Executive committee calling for their explanations for such deficiencies, before signing this report. We believe that the Executive committee did not have any reasons / excuses to give to the auditors for such exclusions of income, as they appeared in their final signed audit report. They are given below:
3.1. Royal College Skills Center.
3.2. Royal College MAS Arena,
3.3. RCU Swimming pool,
3.4. RC Sports Complex.
3.5. JR Jayawardena Pavilion.
3.6. Indoor cricket nets.
3.7. All hoardings and Bill boards at RC premises.
3.8. Sampath Bank ATM at College grounds.
3.9. Commercial Gate ATM at RC Primary gate.
3.10. Royal Thomian Big match
3.11. Riyal-Trinity Bradby shield rugby football match income.
3.12. Book shop
Does the above makes us to believe that all such income are fraudulently siphoned out from accounts? We are fully aware that the proceeds of 2017 and 2018 of the Royal-Trinity match income, were fraudulently siphoned out by a sub-committee member of the RCU. Does the above, making us to believe that all such income from Bradby matches in the years 2023, 2024 & 2025 had the same fate?
4. The Auditors have commented that they were not given sufficient time to check how much contributed from the souvenir published for the Project SAGA 2025, out of the total income of Rs. 25,250,000 recorded in accounts. This gives us an impression that the Treasurer and the committee had restricted the auditors scope for some unknown reason. As per the Auditors’ report, they had been informed that SDS officials have not released the copies among the SGA 2025 participants (held on 29th December 2025), which also amounts to cheating the sponsors/advertisers.
The Financial statements are submitted to a professional auditor or a firm of chartered accountants to get an independent opinion about the fairness of the operating results of the entity to strengthen the reliability of the numbers reported.
In the above situation, the auditors had not been given sufficient time to do their checking and they have not been given satisfactory explanations. Some of the sources of income mentioned as not included in the Financial Statements, are well beyond reasonability or oversight. The Treasurer and all the members of the Executive committee are responsible for preparation and presentation of a reliable set of accounts.
14th April 2026.
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