Financial statements: NSE may suspend Conoil, 10 others

Financial statements: NSE may suspend Conoil, 10 others
Trading floor of NSE

The Nigerian Stock Exchange on Monday announced that 11 companies had missed the deadline to file their audited financial statements for the year ended December 31, 2016.

The Exchange said it might suspend trading in their securities.

The defaulting companies were A.G Leventis Nigeria Plc, African Alliance Insurance Plc, Austin Laz & Company Plc, Capital Hotel Plc, Conoil Plc, Niger Insurance Plc, Premier Paints Plc, Resort Savings & Loans, Smart Products Nigeria Plc, Sovereign Trust Insurance Plc, and Union Diagnostic & Clinical Services Plc.

The NSE said in a statement that the listed companies’ audited financial statements became due on Friday, March 31, 2017.

It said, “As the companies failed to file their AFS by the due date, the companies have violated Rule 1.1.4, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules), which requires listed companies to file their AFS ‘with The Exchange not later than 90 calendar days after the relevant year end.’

“Further, Rule 1.1.4 requires that the AFS must be ‘published in at least two national daily newspapers not later than 21 calendar days before the date of the Annual General Meeting, and posted on the company’s website, with the web address disclosed in the newspaper publications. An electronic copy of the publication shall be filed with The Exchange on the same day as the publication.’”

The NSE said in line with its Zero Tolerance Policy on Infractions, it had notified the public of this rule violation by the companies through its X-Compliance report.

It said the appropriate Compliance Status Indicator had been placed beside the names of the defaulting companies on the Exchange’s trading system and ticker tape.

It said, “Moreover, pursuant to the provisions of Rule 2.2.1 of the Rules, The Exchange has issued a First Deficiency Filing Notice to the companies. The purpose of the FDFN was to notify the companies of their infraction, and to grant them three days to provide the following information to the public through the medium of a press release: a) That the relevant AFS had not been filed by the due date; b) A detailed explanation of the reason(s) for the delay; and the anticipated filing date, or state that the company is unable to indicate an anticipated filing date, and reasons for such inability to indicate the anticipated filing date.”

The bourse said the companies failed to comply with its directives set forth in the FDFN within the stipulated timeline.

In light of the companies’ continued breach of Rule 2.2.1 of the rules, and in line with the requirements of Rule 2.2.2, the Exchange, therefore advise the investing public that an FDFN had been issued against the defaulting companies, and investors were advised to trade with caution on the securities of these companies in light of the absence of up-to-date financial information on them.

The NSE said, “The investing public is further advised that the Exchange will continue to engage with these companies and may take the following additional steps should they fail to comply, and file their AFS within the 90-day cure period stipulated by Rule 2.1.1 of the rules, i.e. 29 June 2017: a) send to the aforelisted companies a ‘Second Filing Deficiency Notification’ within two business days after 29 June 2017; and b) suspend trading in the companies’ securities.”

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