Delay in 2017 results:  Conoil, Union Bank, others dare NSE sanction

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Companies on the Nigerian Stock Exchange (NSE) have defaulted in post listing requirement by not informing late filing of audited financial statement for 2017.

The Exchange mandated that listed companies with December 31, financial year are expected to filing in audited report and accounts on or before March 31, .the following year.

According to our correspondent findings, only few listed companies have notified the NSE on reason (s) over the delay in filing report and accounts.

About five commercial banks, Unity Bank Plc, Wema Bank Plc, FBN Holdings Plc, Diamond Bank Plc, Fidelity Bank Plc have written to notify the Exchange reason (s) for delay.

Others are A.G. Leventis, Presco, Equity Assurance, Cornerstone Insurance, Staco, Multiverse, Meyer Plc, International Breweries, Linkage Assurance Plc, Lafarge Africa Plc and Guinea Insurance Plc, Mutual Benefits.

The likes of Conoil Plc, Oando Plc, Union Bank Plc, among others were yet to inform the bourse reason (s) for late submission of 2017 financial year results.

According to the Exchange, “every listed company is required to provide The Exchange with timely information to enable it efficiently perform its function of maintaining an orderly market. In accordance with the provisions of Appendix iii of the Listing Rules, quoted companies are required to obtain prior written approval from The Exchange before publications that affect shareholders’ interest are made in the media. In addition, companies are also required to disclose material information to The Exchange and publish some of that information in their Annual Reports.”

Shareholders who spoke with Nigerian NewsDirect during the weekend expressed increased delay in companies’ audited results.

The National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Mr. Adeniyi Adebisi, said companies announcing reasons for late submission might be directed by NSE, in a move to keep investors informed.

“The delay by companies is rampant now and a lot of publication on going in newspapers. For sure, those companies will present their accounts to the public,” he said.

He noted that there might be issues between external auditors and the management of those companies.

He stated further that Securities and Exchange Commission (SEC) and Central Bank of Nigeria (CBN) might not be doing the auditing on time.

The former General Secretary, ISAN, Mr. Adebayo Adeleke explained to Nigerian NewsDirect that “It is not new that some companies decided not to notify the Exchange on why they could not submit 2017 results.

“What is more worrisome is that the number of the delay announcement and not filing of results is growing unlike before.

“We have to look at several reasons it is so. Some of these companies are having issues that include regulatory bodies clearing them before posting their results.

“Most companies with December ending financial year have few auditors. The time line available not always enough.”

He noted that the notice to NSE gives those companies some period of grace to comply with posting listing requirement.

In addition, The President, Dynamic Shareholders Association, Mr. Alex Adoo, said shareholders of those companies need to check reason(s) behind the delay.

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