Ahead of today’s deadline for quoted companies to submit their audited reports and accounts for the past business year, several companies are making last-minute efforts to meet the deadline and avoid the poor corporate governance tag and sanction of the Nigerian Stock Exchange (NSE).
Post-listing rules at the NSE require quoted companies to submit their earnings reports, not later than three months after the expiration of the period. Most quoted companies including all banks, major manufacturers, oil and gas companies, breweries and cement companies use the 12-month Gregorian calendar year as their business year. The business year thus terminates on December 31.
NSE’s regulatory filing calendar indicates that the deadline for submission of annual report for companies with Gregorian calendar business year ended December 31, 2015 is today, Thursday, March 31.
Market sources said they expected the momentum of submission to be high between today and tomorrow, since compliance within deadline is generally regarded as a measure of good corporate governance. Besides, companies that failed to meet the earnings deadline will also be sanctioned by the Exchange. They are liable to monetary fines and naming-and-shaming publication of their names.
However, the NSE can grant waiver and extension to companies due to special consideration such as companies awaiting regulatory approval.
A source in the know at the NSE said some companies have filed for extension of the earnings deadline to enable them finalise their annual report.
Source- thenationonlineng.net
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