Business

Non-submission of 2019/2020 financials: Nine companies risk trading suspension by CSE

  • Eight out of nine made losses in 2018/2019

  • No suspension if 2019/2020 financials come before 30 March

 

Nine companies, out of which eight recorded losses during the financial year 2018/2019, are expected to face suspension of the trading of securities by the Colombo Stock Exchange (CSE) from 31 March 2021 onwards. 

In a disclosure, CSE yesterday (22) announced that the decision to suspend trading comes as the companies have failed to submit their annual reports for the financial year 2019/2020. 

According to the CSE, the suspension would be in terms of Rule 7.5 (e) of the CSE Listing Rules and it could be avoided if the companies submit their annual financials for the said year before the 30th of this month. 

The companies that would be suspended in case of a failure to submit their annual financial reports for the said period are Bimputh Finance PLC, Paragon Ceylon, Ceylon Printers PLC, Radiant Gems International PLC, Mackwoods Energy PLC, Sinhaputhra Finance PLC, Standard Capital PLC, Tess Agro PLC, and Office Equipment PLC.

According to the data from the CSE, the last time Bimputh Finance released its annual financials was in August 2019 and in the particular financial, it had been noted that Bimputh Finance had incurred a loss of Rs. 268 million for the financial year 2018/2019.

Meanwhile, in November 2019, Paragon Ceylon issued its annual report for the financial year 2018/2019 and for this period, the company had incurred a loss of Rs. 2.89 million. Ceylon Printers issued their last annual financials on 28 October 2020 and this was for the financial year 2018/2019. For this period, the company had recorded a loss of Rs. 20.65 billion. 

On the other hand, Radiant Gems International in its last issued annual financials had made a loss of Rs. 16.2 million for the financial year 2018/2019, a 509% decline in profitability compared to the prior year. Mackwoods Energy had recorded a loss of Rs. 159.3 million for the financial year 2018/2019 and during the same period, Standard Capital, Tess Agro, and Office Equipment too recorded losses of Rs. 32.69 million, Rs. 74.7 million and Rs. 12.49 million, respectively.

Sinhaputhra Finance PLC earned a profit of Rs. 31 million during this period and it was the only company out of these nine companies to record a profit during the financial year.