Four Nigerian companies — Ekocorp Plc, Premier Paints Plc, Academy Press Plc and Austin Laz & Co Plc — are the latest to get fined by the Nigerian Stock Exchange (NSE) due to their failure to release their financial reports as at when due.
According to the latest X Compliance report issued by the Nigerian bourse, the total sum of N127.2 million was imposed on the four companies for this offence.
Ekocorp Plc received the biggest fine of N75.6 million due mainly to the fact that the company failed to release their 2014 and 2015 financial results on time.
Following Ekocorp Plc is Academy Press Plc which was fined the sum of N35 million. The company’s fine is due to the failure to release its 2017 financial report on time.
In the same vein, Premier Paints Plc was fined the sum of N11.2 million, followed by Austin Laz & Co Plc which received the least fine of N5.4 million.
Each of these companies was previously suspended by the NSE at different times in 2017. Yet, they delayed before eventually releasing the results; hence the fines.
Note that all quoted companies are required to comply with some rules and regulations, including a strict adherence to high disclosure standards as prescribed in Appendix 111 of the NSE Listing Rules.
To this end, companies are expected to submit their financial year-end results at least 90 days after the end of their accounting year. Quarterly results are also expected to be submitted at most 60 days after the end of each quarter.
When companies fail to meet these expectations, the NSE typically send “second filing deficiency notification” before further actions are taken; including financial fines.
“Quoted companies on The Exchange are required to file their quarterly accounts within 30 days after the end of the quarter in accordance with Appendix iii of the Listing Rules.
The sanctions for non-compliance with periodic financial disclosure obligations are clearly spelt out in the Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules).”