NSE slammed over 30 listed firms with N845.9mn

Unity Bank, FTN Cocoa, Ekocorp to pay the highest

Guinness, Seplat, Infinity Trust, others emerged early filers of accounts

The Nigeria Stock Exchange (NSE) has slammed over 30 quoted firms with penalty amounting to N845.9 million – N421mn for 2018 and N424.9mn in 2017. This is according to the X-compliance report released on Friday 9th November, 2018 by the bourse. 

The penalty was as a result of default, on the part of the company, in filing their audited/interim accounts for 2017 and 2018 financial year.

Unity bank Plc. and FTN Cocoa Processors Plc. and Ekocorp were worst hit with a combined penalty of N234mn.

Unity bank Plc penalty amounted to N79.7 million, roughly 18.9 per cent of the entire N421 million penalty charged by NSE for 2018 defaulters alone while FTN Cocoa bagged N78.7mn representing 18.7 per cent of the entire penalty for 2018.

Ekocorp Plc is to shell out N17.6mn as penalty for late filing of its 2014 and 2015 audited financial reports.  

Others with substantial amount of penalty melted out to them include Academy Press (N35mn), Thomas Wyatt (N46.8mn), Universal Insurance (N51.4mn), Great Nigeria insurance (N30.1mn), Union Dicon Salt (N30.8 mn) and Standard Alliance Insurance (N28.7mn).

However, schedule 2 of the X-compliance report which detailed delinquent filers of audited accounts shows that three companies who are supposed to have filed their 2018 financial statements have failed to do so. These companies are Roads Nigeria Plc., Nigerian German Chemical Plc and Multi-Trex Integrated Foods Plc.

Also, 18 companies have failed to submit their 2017 financial statements, 10 have failed to submit 2016 financial statements, while 9 and 2 companies have defaulted in submitting their 2015 and 2014 audited accounts as at 9th November 2018 respectively.

“The Exchange has identified the companies listed on Schedule 2 as companies that fell short of the minimum listing standards in terms of timely disclosure of their audited annual financial performance and have Missed Regulatory Fillings (MRF) or are Awaiting Regulatory Approval (AWR) from their primary regulators.”

Seven companies were fingered by the NSE for breaching Appendix III of the General Undertaking (Equities), rulebook of the NSE 2015 (Issuers’ Rules) and the Exchange’s circular No. NSE/LARD/LRD/CIR3/17/05/12 on publication of announcements or press releases via the issuers’ portal. 

The seven companies include Prestige Assurance, First Alluminium, Ekocorp, Stanbic IBTC, Niger Insurance, Sovereign Trust insurance and Flourmills.

Meanwhile, Guinness, Seplat, Infinity Trust and xx others were commended for timely rendition of their financial statement to the bourse in 2018, the X-compliance report had shown.

In schedule one of the X-compliance report, Guinness Nigeria whose year end is 30th June, 2018 submitted its 2018 financial statement before the due date of 30th September 2018.

Early filers of 2017 audited financial statements include Nigeria Breweries Plc, Transcorp Hotels Plc, Total Nigeria Plc, Africa Prudential Plc, United Capital Plc and Seplat Petroleum Development Company Limited.

Early filers are companies that file their interim financial statements at least two weeks before the due date, and audited financial statements at least four weeks before the due date.

Infinity Trust Mortgage Bank Plc and two players in the downstream sub-sector - Conoil and Forte Oil Plc – emerged as the early filers of 2018 interim financial statement for 2018 while PZ Cussons, Infinity Trust, United Capital Forte Oil, Unilever, and Omoluabi clinched the position as the company that filed their 2017 interim financial statement.

A total of 18 listed companies were suspended pursuant to the provision of Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules) (“Default Filing Rules”), which provides that; “If an issuer fails to file the relevant accounts by the expiration of the cure period, the Exchange will: send to the issuer a “second filing deficiency notification” within two (2) business days after the end of the cure period; suspend trading in the issuer’s securities; and notify the Securities and Exchange Commission (SEC) and the market within twenty- four (24) hours of the suspension.”

The X-Compliance Report is a transparency initiative of the NSE, which is designed to maintain market integrity and protect investors in the bourse by providing compliance related information on all listed companies.