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Listed firms seek reporting deadline extension

Listed firms seek reporting deadline extension

A NUMBER of listed companies failed to beat the extended deadline of up to end of April to release their 2019 financial statements due to the prolonged lockdown stemming from COVID-19.

BY FIDELITY MHLANGA

The Zimbabwe Stock Exchange last month issued a blanket extension for all companies whose half-year and full-year financial statements were due for publication by March 31, 2020 to or before April 30, 2020.

This came as companies were struggling to finalise their half-year or full-year financial statements because of the impact of COVID-19. Entities that have failed to beat the April 30 deadline are seeking another extension.

“Further to our previous communication that the audited financial statements for the year ended December 31, 2019 were to be published by the 30th of April 2020, the board of directors of Dawn Properties Limited hereby notifies shareholders that the company has applied for an extension to publish the financial statements by the 15th of May 2020. The delay is due to the late finalisation of the financial statements caused by the nationwide lockdown meant to control the COVID-19 pandemic. The board and management sincerely apologise for any inconveniences caused,” said Dawn Properties company secretary Formai Myambuki in a statement.

Dawn is not alone in this situation. ZB Holdings has also asked for an extension.

The group said it was unable to publish its audited financial statements by April 30, 2020 due to the COVID-19 lockdown which made it difficult to avail critical resources to produce the results.

ZB holdings sought approval from the bourse to defer the publication of its financials to no later than May 31, 2020.
“Due to this lockdown, critical resources have not been readily available to provide the required expertise to timeously conclude the group’s 2019 audited financial statement. In particular, technical work required as a result of application of international accounting standards namely IAS 21, the effects of changes in foreign exchange rates and IAS29 financial reporting in hyperinflation economies is still being finalised,” ZB said in a statement.

GetBucks Microfinance Bank Limited also advised that the company was not able to publish its condensed audited financial statements for the year ended December 31, 2019 on or before April 30, 2020.

‘The delay in preparation and the resultant delay in publication of the financial statements is due to the additional processes that our external auditors had to adopt in response to COVID-19. COVID-19 was declared a global pandemic by the World Health Organisation and resulted in a national lockdown being implemented to curb its spread in Zimbabwe,’ said GetBucks chief finance officer Patrick Mashinga in a statement.

Other companies that have sought permission to delay publication of their financials include First Mutual Holdings Limited, CBZ Holdings, First Mutual Properties Limited and Zeco Holdings.

They indicated that they will publish their financials by May 29, 2020. Zimbabwe has been under lockdown since March 30, 2020.

While the nation is still under lockdown, authorities said the country was now at level two and starting this Monday, allowed formal businesses to operate from 8am to 3pm under stringent conditions to contain the scourge.

Do you have a coronavirus story? You can email us on:
news@alphamedia.co.zw

NewsDay Zimbabwe

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