HomeNewsZeco faces censure over financials

Zeco faces censure over financials

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THE Zimbabwe Stock Exchange (ZSE) has given struggling engineering concern Zeco Holdings an ultimatum to release year-end financial results after it missed the March 31 deadline, sources have said.

Report by Bernard Mpofu

Impeccable sources close to the developments told NewsDay Business that the ZSE Listing Committee had written to Zeco, TA Holdings and Pioneer Corporation after the companies failed to publish their results for the period ending December 31, 2012.

TA and Pioneer, however, escaped the censure after they eventually released the financials last week.

“The three listed companies were given up to April 30 to release their financial results, failure of which the ZSE may take action. As you may be aware, TA and Pioneer have already released their results,” the source said.

ZSE acting chief executive officer Martin Matanda could not be reached for comment as he was reported to be in a meeting.

ZSE listing rules in possession of this newspaper state that companies which miss the due date for publishing audited results should instead publish unaudited results.

“If a listed company has not distributed annual financial statements to all shareholders within three months of its financial year end, it must publish in the Press and distribute to all shareholders a preliminary report even if the information is unaudited at that time,” reads part of the ZSE listing requirements.

The listing rules also spell out: “On the day following the due date of issue of the listed company’s interim/preliminary report, a letter reminder will be sent by post or facsimile to the listed company requesting that it rectifies the situation and advising that it has been granted a period of one month from the date of such reminder in which to issue its interim/preliminary report, failing which the company’s listing will be suspended and a special meeting of the committee will be convened to consider the continued suspension or termination of the company’s listing.”

Last year same time, engineering groups Zeco Holdings and Gulliver Consolidated, financial services group Interfin Banking Corporation and logistics and passenger transport operator Pioneer Holdings, failed to furnish shareholders with financial statements within the stipulated time frame.

This resulted in the Securities Commission of Zimbabwe threatening to take action.

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