As the deadline for quoted companies to submit their audited reports and accounts for the year ended December 31, 2014, expired last week, there are indications that the Nigerian Stock Exchange (NSE) may sanction some 32 companies over their failure to submit their account within the period.
Post-listing rules at the NSE require quoted companies to submit their earnings reports not later than three months after the expiration of the period.
Most quoted companies, including all banks, major manufacturers, oil and gas companies, breweries and cement companies use the 12-month Gregorian calendar year and so the business year terminates on December 31.
The NSE’s regulatory filing calendar indicates that the deadline for the submission of annual report for companies with the Gregorian calendar business year ends on March 31, but an extension of one month, which was April 30, 2015, was given. With the data gotten showing that there is a high compliance from quoted companies on the timely submission of results as at April 29, 2016, 32 companies or 27 per cent of the 118 quoted companies with December 31, 2015, as financial year are yet to submit their results as 73 per cent have in turn submitted theirs.
It will be known that the capital market is information driven and some companies with poor performance in their result will wait for the next quarter to cover up for the poor performance of the previous quarter. In ensuring that investors are not misled in their investment decision, the NSE enforced its rules and regulations, especially the post-listing rules that define the integrity of the market as it tags and applies fines on companies that fail to meet earnings reports’ deadline. In the last three years, the NSE X-compliance report showed that 39 companies have been fined N110 million over delayed results.
Companies that are yet to submit their 2015 audited results include Stanbic IBTC and Unity Bank under the Banking sub-sector. Also 12 insurance companies – African Alliance, Cornerstone Insurance, Equity Assurance, Great Nigeria Insurance, Guinea Insurance, Lasaco Insurance, Linkage Insurance, Mutual Benefit Insurance, Niger Insurance, Royal Insurance, Sovereign Trust Insurance and Standard and Allied Insurance – have not submitted.
Source : Leadership