CSE takes stern action on non-compliers; suspends six companies

• List narrows from earlier seven
• CSE has power even to delist an entity due to prolonged delay or failure to submit financials 

The Colombo Stock Exchange (CSE) suspended trading of six listed entities as they failed to file interim financials and annual reports even after the firms were given adequate time to comply with the most crucial continuous listing rule.    

PC House PLC, PC Pharma PLC, Ceylon & Foreign Trades PLC, Standard Capital PLC, Adam Investments PLC and Adam Capital PLC were the ones whose share trading was suspended from today (April 2). 

However, the list has narrowed from an earlier seven, which had Lanka Cement PLC, as the entity managed to submit the interim financials on March 29, the deadline given for these entities to comply with the rules before facing trading suspension.

On a March 23 disclosure, the CSE said Lanka Cement PLC along with the aforesaid entities had failed to file the interim financials for several quarters and annual reports for a few years and were facing suspension of the trading of their securities, “unless the company rectifies the non-compliance on or before 29 March 2018”.  Lanka Cement PLC, an entity majority owned by the Sri Lankan government through Sri Lanka Cement Corporation, Treasury and a few other State-owned business enterprises had failed to submit the financials for the quarters ending from September 30, 2014 to December 31, 2017. 

Meanwhile, the defamed PC House PLC, PC Pharma PLC and Ceylon & Foreign Trades PLC have failed to submit their interim results from December 31, 2015 and the annual reports since March 2014.

Adam Investments PLC and Adam Capital PLC have also failed to submit interim results for the December 2017 quarter. 

The other entity has been Standard Capital PLC, the manufacturers of paints and wood care products and other industrial chemicals. Gulf East Finance Limited owns 50.53 percent stake in the company and the firm has filed interim results only up to September 30, 2017.

Since April last year, the listed firms who fail to file interim results and annual reports within the stipulated time period are first transferred to the, ‘Watch List’ where these non-compliers are given a reasonable time period to comply with the rules before their securities trading is suspended. According to the amended listing rules made public a year ago, the CSE has the power to even delist an entity due to a prolonged delay or failure to submit its interim financials beyond a certain period.