NSE Cautions Investors against 13 Companies for Failure to File Accounts

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Goddy Egene

The Nigerian Stock Exchange (NSE) wednesday advised investors to trade with caution on the securities of 13 companies due to the absence of up to date financial information on them. The companies are: Aso Savings and Loans Plc; Deap Capital Management & Trust Plc; DN Tyre & Rubber Plc; FTN Cocoa Processors Plc; Goldlink Insurance Plc; International Energy Insurance Plc; Medview Airline Plc;Resort Savings & Loans Plc; Staco Insurance Plc; Standard Alliance Insurance Plc; UNIC Diversified Holdings Plc; Union Dicon Salt Plc and Union Homes Savings and Loans Plc.

According to the NSE, the companies violated Rule 1.1.2, which are rules for filling of accounts and treatment of default filing rule book of the exchange. The NSE explained that the companies’ unaudited financial statement (UFS) became due on 29 of June 2020, being the extended due date as granted by the exchange.

“By virtue of non-filing of the UFS by the due date, the companies have violated Rule 1.1.2, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange ,which provides that every issuer shall file its unaudited quarterly accounts not later than 30 calendar days after the relevant quarter, and publish it 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. An electronic copy of the publication shall be filed with the exchange on the same day as the newspaper publication.”

Pursuant to the provisions of Rule 2.2.1 of the Rules, the exchange had issued a deficiency filing notice ( DFN) to the aforementioned companies. The purpose of the DFN 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.

The NSE added that the defaulting companies failed to comply with exchange’s directives set forth in the DFN and 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 advised the investing public that a DFN has been issued against the aforelisted companies and has therefore advised investors trade with caution on the securities of these companies in the absence of up to date financial information on them.

The NSE further advised that the exchange will continue to engage with these companies and may take additional steps should they fail to comply, and file their UFS within the 90 days cure period stipulated by Rule 3.1.