Oando Plc yesterday indicated that it would not be able to meet the deadline for the submission of its full-year audited report for the year ended December 31, 2017 due to a review of the report by the Financial Reporting Council of Nigeria (FRCN).
Post-listing rules at the NSE require quoted companies to submit their audited earnings reports, not later than 90 calendar days, or three months, 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.
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. Not less than 83 per cent of quoted companies use the 12-month Gregorian calendar year as their business year. The deadline for the submission for the 2017 business year is thus March 31, 2018.
In a regulatory filing signed by Company Secretary and Chief Compliance Officer, Oando Plc, Ayotola Jagun, Oando stated that the Financial Reporting Council of Nigeria (FRCN) has indicated interest in undertaking a more detailed review of the company’s audited financial statements as part of their statutory review due to the issues raised by the recent investigation of the company by the Securities and Exchange Commission (SEC).
“We envisage that the FRCN’s review might take longer than originally anticipated. Therefore, the company may not be able to file the accounts until the second week in May, the exact date of filing will be dependent on the turnaround time at the FRCN,” Oando stated.
SEC has directed a forensic audit of Oando. The forensic audit was precipitated by alleged findings of the SEC, following an investigation into the company which commenced in July 2017. SEC had in October 2017 released the findings of the investigation and called for a technical suspension on the trading of Oando’s shares as well as a forensic audit into the affairs of the company.
Oando had initially disagreed to what it termed ‘steep penalties’, however, in December 2017, the company issued a statement on its website, saying it would fully cooperate with the SEC on the forensic audit.
For three consecutive quarters the company has released its results on time and posted strong revenues and profits, despite a challenging environment. Following in the footsteps of the company’s cooperation with the SEC, Oando recently reached a peace accord with one of the shareholders who petitioned the SEC, AlhajiDahiruMangal with the Emir of Kano, SanusiLamido as the arbitrator.