Lasaco Assurance has revealed the reason for the company's inability to submit its Unaudited Financial Statements for the first quarter ended March 31, 2020, at the appropriate period. Lasaco Assurance is behind the scheduled period of 90-days, while its stock has nosedived since trade opened this week.
According to a statement seen by AllNews and signed by the company's Secretary, Gertrude Olulekun, the company is not to be blamed for Lasaco Assurance's late submission, as the National Insurance Commission (NAICOM) is yet to approve Lasaco Assurance's 2019 Financial Statements.
"Lasaco Assurance Plc (the Company) wishes to notify The Nigerian Stock (The Exchange), its shareholders and the investing public of the Company'sinability to file its Unaudited Financial Statements for the first quarter ended 31st March 2020 within the stipulated period.
"This is due to the fact that the Company is still awaiting the approval of its 2019 Financial Statements by the National Insurance Commission( NATCOM)."
AllNews gathered that the company has its sight for the fourth week of this month, "The Company is optimistic that the Audited Financial Statements will be submitted to The Exchange on or before 20th July 2020 together with the Unaudited Financial Statements for the quarter ended 31st March 2020."
The financial to release their result has kept shareholders in the dark concerning the financial health of Lasaco Assurance. The financial statements are how shareholders track the financial performance of their company, and NSE Listing Rules state that companies should submit their financial year-end result latest by 90 days after the end of each year - that's March. While for quarterly financial results, 60-days grace after the end of each quarter is given to companies.
According to the NSE listing rules, for the non-compliance of the first 90 calendar days, NSE will fine such company N100,000 daily, then increase the fee to N200,000 if the company fails to submit its financials for the next 90 calendar days. The fine will then be doubled - if the company still hasn't submitted its financials - to N400,000 per day thereafter until the date of submission.
Each 90 calendar days could attract N9 million each to about N72 million for 180 days - within a year, the fine could reach N99 million.
The company's stock has not had an impressive run since the last weeks of June, trading at a flat price of N0.25 kobo per share. The share price, however, has been trading on a disappointing note having dropped to N0.24 kobo per share on July 7, 2020, before picking up by N0.01 kobo today to close at N0.25 again. Since June, Lasaco Assurance share price has been jostling between N0.24 kobo and N0.25 kobo per share - only time it passed the figure was on June 15, closing the trade at N0.27 kobo per share.
Note: Lasaco Assurance stock price traded at N0.25 kobo per share as at the time of filing this report.