Companies fail to meet reporting deadline

…ZSE further extends reporting period

LIVINGSTONE MARUFU

The Zimbabwe Stock Exchange (ZSE) has been forced to extend the deadline for companies listed on the local bourse to publish reports for the second time after several firms failed to meet the April 30, 2021 statutory deadline, Business Times can report.

The extended deadline for the publication of financial results will assist those entities whose reporting processes have taken additional time due to remote work arrangements, travel restrictions and impact of the Covid-19 pandemic.

Initially, public entities were supposed to publish their full year or half year financial results by the end of March.

But, several companies applied for exemptions forcing ZSE to extend the deadline to April 30, 2021.

With the April 30, 2021 reporting deadline passed, a number of firms have applied to ZSE for another relief which has been granted.

The embattled companies are now expected to publish their full year and half year results to December 31, 2020 by the end of this month.

Analysts, however, told Business Times that failure to disclose financial results in a timely manner deprives investors and other stakeholders the opportunity to monitor how companies they have invested in are performing in real time.

Listed firms that sought additional relief to publish their result by May 31,2021  included  Padenga, FBC Holdings Limited, Zimre Holdings, Truworths, Fidelity Life Assurance and  spirits and wines maker, African Distillers.

Financial services group, ZB Financial Holdings, has also applied for the relief, for the second time in two months.

Last week, Zimre Holdings and FBC Holdings were the latest to join the bandwagon.

“Zimre Holdings Limited (ZHL) shareholders are advised that ZHL is unable to publish the December 31 2020 financial statements. The delay is on account of the need to consolidate Fidelity Life Assurance of Zimbabwe Limited (FLA) into ZHL as a subsidiary, following its acquisition in 2020,” ZHL company secretary Ruvimbo Chidora said.

The subsidiary is in the process of restating its 2018 and 2019 financial statements in accordance with the separation of its Pooled Fund between policyholders and shareholders, which separation is in accordance with Insurance Act (Chapter24:07) and the Pensions and Provident Act (Chapter 24:09). 

“ZHL has therefore sought and been granted leave by the Zimbabwe Stock Exchange to publish its 2020 financial statement on or before May 31 2021,” Chidora said.

FBC company secretary Tichaona Mabeza said the financial services group has been granted the deferment of results due to non-completion of the audit processes due to Covid-19 induced lockdown.

He said the delay has been a result of sub-optimal working arrangements arising from the implementation of lock-down rules in terms of Statutory Instrument 10 of 2021, Public Health (Covid-19 Prevention, Containment and Treatment) (National Lockdown) (No. 2) (Amendment) Order, 2021 (No. 9).  

“We advise shareholders and all other stakeholders of the group that  FBC has further deferred  the publication of its audited  financial statements for the year ended  December 31, 2020  from the previously granted  extension deadline  of April 30, 2021  to a date not later than  May 14, 2021,” Mabeza said.

He added: “The deferment is due to non-completion of the audit assurance process as a result of sub-optimal working arrangements arising from the implementation of lockdown rules as one of the strategies to contain the spread of the Covid-19 pandemic.

“We further advise that the Reserve Bank of Zimbabwe and the ZSE have each separately approved the deferment of the publication of the group’s 2020 audited financial statements to May 14, 2021.”

In a notice to shareholders, Padenga company secretary, Andrew Lorimer, said Padenga would publish its financial statements for this period on or before May 14 after obtaining a 14-day extension from ZSE.

“The delay by Padenga in publishing its financial statements has been caused by the need to finalise the year end audit. The external auditors for Padenga and for Dallaglio are still reviewing the consolidated numbers,” Lorimer said.

Proplastics and ZECO Holdings have been granted an extension and will release financials on or before May 14 and May 18 respectively.