Mon. Aug 3rd, 2020

News Agency of Nigeria

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Audit: NSE warns investors on shares of 13 firms

2 min read

NSE

By Chinyere Joel-Nwokeoma

The Nigerian Stock Exchange (NSE) has urged investors to trade with caution on the shares of 13 companies for failing to submit financial statements without any explanation.

The News Agency of Nigeria (NAN) reports that the affected companies include Aso Savings and Loans, Deap Capital Management & Trust, DN Tyre & Rubber, FTN Cocoa and Goldlink Insurance.

Others are International Energy Insurance, Medview Airline, Resort Savings & Loans, Staco Insurance, Standard Alliance Insurance, UNIC Diversified Holdings, Union Dicon Salt and Union Homes Savings and Loans.

The exchange in a statement by Mr Godstime Iwenekhai, Head, Listings Regulation Department, said the defaulting companies failed to meet regulatory deadlines for the submission of their financial statements without any explanation.

The statement said defaulting companies failed to comply with the Exchange’s directives set forth in the Deficiency Filing Notice (DFN) issued to them.

“Investors are advised to trade with caution on the securities of these companies in the absence of up to date financial information on them,” said the Exchnage.

The NSE warned that it may suspend trading on the shares of the companies if they fail to comply with extant rules within the specified period.

According to the statement, the deadline for submission of the unaudited financial statement of the companies became due on June 29, being the extended due date as granted by the Exchange.

“By virtue of non-filing of the unaudited report by the due date, the companies violated extant rules at the NSE which provide that every company shall file its unaudited quarterly accounts not later than 30 calendar days after the relevant quarter,” it said.

It noted that companies were required to publish the financials within five business days after the date of filing, in at least two national daily newspapers, and post it on the company’s website, with the web address disclosed in the newspaper publication.

The rules also required that an electronic copy of the interim financial publication shall be filed with the Exchange on the same day as the newspaper publication.

It said the NSE issued deficiency filing notice to the companies notifying them of their violations and mandated them to make public disclosure regarding the violation, the reasons for the violation and possible date for publication of the outstanding financial statement.

According to the Exchange, the defaulting companies failed to comply with the directives in the DFN.

The statement said the Exchange would continue to engage with these companies on the need to comply with post listing requirements.

It, however, warned that it may take additional steps if they failed to comply and file their unaudited financial statements within 90-day cure period by Sept. 27, 2020.

The Exchange said it would send to the aforelisted companies a “Second Filing Deficiency Notification” within two business days after Sept. 27 and suspend trading in the companies’ securities.