Sunday, August 21, 2011

50 pc listed companies fail to submit Q4 reports

More than half of the companies listed with Nepal Stock Exchange (Nepse) failed to comply with the existing rules as they did not submit their fourth quarterly report of the fiscal year 2010/11 to Securities Board of Nepal (Sebon)--the sole market regulator--as of Saturday.

As per the existing Securities Act, listed companies have to submit their quarterly report to Sebon within one month of the completion of respective quarter. Sebon stated that total 99 companies, out of the total 201 companies listed with the sole capital market, submitted their fourth quarterly status by Saturday.

The last date to submit the quarterly financial status is August 17.

Niraj Giri, spokesperson of Sebon, attributed the delay in submission of financial reports to Nepal Rastra Bank´s new monetary policy offer that allowed the banks and financial institutions (BFIs) to recover loans for 2010/11 and adjust the recovery on books even in the first month of the new fiscal year 2011/12.

“However, we expect the remaining companies to submit their quarterly financial reports within the next week,” said Giri.

Those not submitting the report within stipulated deadline include eight commercial banks, 25 development banks, 38 finance companies, 12 insurance companies and one each from hotel, hydropower and other groups.

Among those defaulting on the submission of the report include Jyoti Spinning Mills and Nepal Development Bank, which are under liquidation process.

According to Sebon, Royal Merchant Banking and Finance, Api Finance, Prudential Insurance Company, Pathibhara Bikas Bank, Sahayogi Bikash Bank, Bishwo Bikash Bank and Subhechha Bikash Bank had lately submitted their quarterly report.

Of the total 183 listed companies, 32 companies had failed to submit their financial status of fourth quarter in the fiscal year 2009/10.

Companies failing to submit their financial status of fourth quarter in the fiscal year 2009/10, include four each from finance, trading, insurance and development bank sectors, one each from hotel and others, and 14 manufacturing groups.

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