14 Cos yet to submit reports to SEBON

As many as 14 companies listed on the Nepal Stock Exchange have failed to submit their annual reports for the fiscal year 2007/08 to the Security Board of Nepal (SEBON) as required by its regulations. The Security Registration and Issuance Regulation 2008 require that listed companies submit their annual reports within five months of the end of the fiscal year to SEBON. That means they should have submitted their reports by Dec. 15, 2008.

Most of those who haven't submitted their annual reports are from the manufacturing sector, and some of them have already shut down. Five manufacturing industries including Nepal Vanaspati Ghee Udyog, Butwal Spinning Mills, Harisiddhi Brick and Tile Factory, Birat Shoes and Shree Ram Sugar Mills have not presented their reports to SEBON. Harisiddhi has ceased to operate completely and its property has been taken over by NCC Bank for its failure to repay loans. Among the hotel group, the Yak and Yeti Hotel has not yet submitted its annual report to SEBON. Mahendra Shrestha, liaison officer (corporate) of the hotel said that the hotel had not sent its financial report to SEBON as it had applied to both SEBON and NEPSE to get de-listed from NEPSE two and half years ago.

"We have not paid the listing fees to NEPSE for the last two years," he said. "As per the decision of the annual general meeting of the hotel held two years ago, we want to go for a private limited company by getting de-listed from NEPSE." The hotel turned to public limited company on the basis of old legal provision without going for initial public offering. Nepal Trading Limited and Nepal Welfare Company from the trading group have not submitted their reports to SEBON. National Hydropower, whose shares are being traded the most in recent days, has also not reported its financial status.

The government holds a majority share in Rastriya Beema Sansthan which has not had its transactions audited for the last seven years and failed to submit report to the SEBON. Nepal Industrial Development Corporation (NIDC), Gandaki Development Bank, Tribeni Development Bank and Purwanchal Grameen Bikas Bank among the development banks are yet to submit their financial status reports. According to the Finance Ministry, NIDC, a state-owned financial institution, audited its report for the fiscal year 2005/06 and has not shown up since. SEBON chairman Surbir Poudel said that SEBON would take action against such companies as per the legal provisions from the current fiscal year. "The existing legal provision has given SEBON the right to impose fines up to Rs. 200,000 on such errant companies," said Poudel. "SEBON reserves the right to de-list them from NEPSE," he added.

As many as 44 out of 62 finance companies, two out of four hotels, 13 out of 17 insurance companies, 18 out of 29 development banks, two out of four trading firms, one out of three hydropower companies and two companies categorized under the other heading submitted their annual reports in the late hours.
Source: Kantipur