Authorities at the Nigerian Stock Exchange (NSE) at the weekend lifted suspension clamped on FTN Cocoa Processors Plc, nearly three months after the Exchange disallowed trading in the shares of the agricultural company for breach of corporate governance rules.
The NSE had on September 01, 2020 suspended trading on FTN and five other companies for failing to adhere to best corporate governance and extant post-listing requirements that make it mandatory for quoted companies to submit their financial statements within stipulated timelines.
Post-listing rules at the NSE require quoted companies to submit their audited earnings reports not later than 90 calendar days after the expiration of the period. The rules also require quoted companies to submit interim report not later than 30 calendar days after the end of the relevant period.
More than three-quarters of quoted companies use the 12-month Gregorian calendar year as their business year.
The business year thus terminates on December 31. While March 31 is usually the deadline for submission of annual report for companies with Gregorian calendar business year, the deadline for the quarterly report is a month after the quarter.
In a regulatory notice at the weekend, the NSE stated it lifted the suspension after FTN had submitted outstanding financial statements, which led to the suspension.
FTN had submitted two reports for the half-year and third quarter of 2020. The six-month report for the half year ended June 30, 2020 showed that turnover dropped by 42 per cent to N217.27 million in June 2020 as against N373.52 million in June 2019. Loss stood at N189.12 million in 2020 as against N243.54 million in 2019.
The nine-month report for the period ended September 30, 2020 showed that turnover dropped by 55 per cent from N501.97 million in third quarter 2019 to N227.26 million in third quarter 2020. Loss stood at N351.72 million in 2020 as against N354.48 million in 2019.