Audited, interim accounts: Stock Exchange rakes in N560m from penalty by defaulters
by Iheanyi Nwachukwu
May 24, 2018 | 1:26 am| | | Start Conversation
Many listed companies paid a total of N560 million as penalty to the Nigerian Stock Exchange (NSE) for defaulting in filing their audited and interim financial accounts from 2015 financial year to first-quarter (Q1) of 2018.
The companies penalised in accordance with the Rulebook of The Exchange (Issuers’ Rules) as shown in the X–Compliance Report as at May 18, 2018 are mostly from the financial services sector (insurance companies and banks). Many of them filed their audited and interim financial statements after the regulatory due date.
The X-Compliance report is a transparency initiative of the Exchange which is designed to maintain market integrity and protect investors by providing compliance related information on all listed companies.
Only five companies –Academy Press Plc, Africa Alliance Plc, Ekocorp Plc, Thomas Wyatt Plc and Universal Insurance Plc paid the largest chunk of the penalty, accounting for about 50percent or cumulative N253million in paid penalty.
Academy Press Plc paid N35million default filing penalty. The company provides printing and binding services required for the production of educational books and periodicals, annual reports, brochures, posters, and so on.
Africa Alliance Plc paid N46.1million as penalty. The company specializes in Life Assurance business offering personalised insurance products tailored for each stage of human lives.
The Nigerian Bourse rake-in N75.6million as penality from Ekocorp Plc. Ekocorp Plc provides hospital and medical service plans and its main activity is to provide direct health and medical insurance.
Thomas Wyatt Plc paid N46.8million penalty. Thomas Wyatt Nigeria Plc is the pioneer manufacturer of school and office stationery and large scale printers which hitherto was done in the United Kingdom and imported into the country.
Also, Universal Insurance Plc paid penalty of N51.4million. With over N8billion in assets, the company is one of the nation’s personal lines insurers. Universal Insurance sells eight major lines of insurance, including auto, property and commercial.
INVESTOR also found companies that paid in excess of N5million as penalty. They are: Austin Laz & Company Plc (N5.40million) for its 2016 audited results; Conoil Plc (N13.5million) for its audited 2016 and first-quarter 2017 results.
Interestingly, most of the companies on the default filers list have not been able to pay shareholders dividend over time. Daar Communication Plc paid N18.3million for audited 2015, 2016, Q1’2017 results. Equity Assurance Plc paid N11.200million for is audited result for 2016; while Great Nigeria Insurance Plc paid N30.1million penalty for its audited 2015, 2016 and Q1’2017 results.
Also, Fortis Microfinance Bank Plc paid N20.8million penalty for its 2016 audited and third-quarter (Q3) 2017 results; while the Nigerian bourse penalised Guinea Insurance Plc for its audited 2015, Q1, Q2, Q3 2016, and audited 2016 results and the company paid N22.3million.
Niger Insurance Plc paid N16.1million for its audited 2016 and Q1 2017 results, according to NSE compliance report.
Other companies that paid above N5million as results default filing penalty are: Premier Paints Plc (N11.2million) for audited 2016 result; Royal Exchange Plc (N7.3million) for audited 2016 result; Sovereign Trust Insurance Plc (N10.2million) for audited 2016 and first-quarter 2017 results; STACO Plc (N7.5million) for its audited 2016 and Q1’2017 results; while Standard Alliance Insurance Plc paid penalty of N8.2million for its audited 2016 audited results.
Companies that are listed on the Exchange are required to adhere to high disclosure standards which are prescribed in Appendix III of the Listing Rules. Financial information which is periodic disclosure is expected to be released in a timely manner by listed companies to enable the NSE efficiently perform its function of maintaining an orderly market.
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