KATHMANDU, JUNE 08, 2013
Half of the listed firms did not even bother to submit their quarterly reports to the regulator on time, continuing to disregard regulation.
Among the 227 companies that had to submit their third quarter financials to Securities Board of Nepal (Sebon), only 118 submitted their reports within time, while 30 companies submitted theirs after the deadline. Listed firms are required to submit their unaudited financial reports to Sebon within 30 days of the end of each quarter, according to regulation. However, only half have fulfilled the requirement.
“Though there is a regulation that states that companies have to submit their reports on time most tend to disregard it,” said share analyst and chairman of Securities Research Center and Services Rabindra Bhattarai.
In the capital market which is dominated by financial institutions, there are 174 listed banks and financial institutions that need to report to the monetary authority of Nepal — Nepal Rastra Bank (NRB). These financial institutions always submit their financials within the specified time, else the central bank takes stringent actions to deter them, according to a source at the NRB.
However, only 95 of these listed financial institutions submitted the financials on time to the capital market regulator. Likewise, 15 financial institutions have submitted the financials past the stipulated time of mid-May.
Similarly, among the 21 listed insurance companies, only 13 submitted their financials on time, while five were late. Three companies have yet to submit their reports. Among real sector companies, two hotels, four manufacturing companies, two hydropower companies and Nepal Telecom submitted their reports on time.
According to the existing regulation, the regulator can slap a monetary fine on the companies and promoters can also be disqualified to hold the position of a director or be appointed to managerial posts in any public limited company for the next 10 years by default, which according to the regulator is an extreme punishment.
“Moreover, even if the companies submit their quarterly or annual financial reports on time, investors are not made aware about the state of these companies by the regulator, so it does not matter whether companies submit their reports or not,” said Bhattarai.
“Earlier, Sebon had attempted to list the major indicators of the listed firms on its website. Now it has even stopped that,” he added. Companies are required to publish their financials in a national daily so that investors can make informed decisions. “It is doubtful if Sebon even keeps records of whether companies have published their financials or not,” pointed out Bhattarai.
Half of the listed firms did not even bother to submit their quarterly reports to the regulator on time, continuing to disregard regulation.
Among the 227 companies that had to submit their third quarter financials to Securities Board of Nepal (Sebon), only 118 submitted their reports within time, while 30 companies submitted theirs after the deadline. Listed firms are required to submit their unaudited financial reports to Sebon within 30 days of the end of each quarter, according to regulation. However, only half have fulfilled the requirement.
“Though there is a regulation that states that companies have to submit their reports on time most tend to disregard it,” said share analyst and chairman of Securities Research Center and Services Rabindra Bhattarai.
In the capital market which is dominated by financial institutions, there are 174 listed banks and financial institutions that need to report to the monetary authority of Nepal — Nepal Rastra Bank (NRB). These financial institutions always submit their financials within the specified time, else the central bank takes stringent actions to deter them, according to a source at the NRB.
However, only 95 of these listed financial institutions submitted the financials on time to the capital market regulator. Likewise, 15 financial institutions have submitted the financials past the stipulated time of mid-May.
Similarly, among the 21 listed insurance companies, only 13 submitted their financials on time, while five were late. Three companies have yet to submit their reports. Among real sector companies, two hotels, four manufacturing companies, two hydropower companies and Nepal Telecom submitted their reports on time.
According to the existing regulation, the regulator can slap a monetary fine on the companies and promoters can also be disqualified to hold the position of a director or be appointed to managerial posts in any public limited company for the next 10 years by default, which according to the regulator is an extreme punishment.
“Moreover, even if the companies submit their quarterly or annual financial reports on time, investors are not made aware about the state of these companies by the regulator, so it does not matter whether companies submit their reports or not,” said Bhattarai.
“Earlier, Sebon had attempted to list the major indicators of the listed firms on its website. Now it has even stopped that,” he added. Companies are required to publish their financials in a national daily so that investors can make informed decisions. “It is doubtful if Sebon even keeps records of whether companies have published their financials or not,” pointed out Bhattarai.
Source: THT
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