17 listed firms get deadline to submit financial reports

The Philippine Stock Exchange (PSE) has given 17 delinquent listed corporations until the end of the month to submit required financial reports to avoid the suspension of trading of their shares.

These firms failed to beat the May 2, 2006 deadline set for filing of required structured reports.

PSE president Francis Lim pointed out that the grace period shall be non-extendible, and would not affect the PSE’s earlier decision to impose fines on the affected companies.

"After the May 31, 2006 deadline, affected companies will be dealt with stiffer penalties, including the suspension of trading of their stocks," Lim said, adding that "the daily fine shall continue to be applied during the non-extendible grace period."

The PSE was earlier contemplating on suspending the trading of shares in these companies effective May 19, 2006 but eventually decided to grant them breathing space in lieu of the difficulties in preparing financial statements in compliance with International Accounting Standards/ Philippine Accounting Standards (IAS/PAS).

The IAS/PAS took effect only on Dec. 31, 2005, and before that, Philippine companies used the Generally Accepted Accounting Principles (GAAP).

"The learning curve for the new accounting treatment is high so we have to exercise some considerations for the listed companies," Lim explained.

Lim said the newly prescribed accounting standards are very stringent and radically different from the set of standards that listed companies are used to.

"Fairness demands that companies must be accorded one last chance to comply," Lim said. "I also wish to emphasize that this is purely an act of grace from us for the companies concerned."

The companies in the PSE’s watchlist are Apex Mining Co., Inc., Atlas Consolidated Mining and Development Corp., Benguet Corp., Cosmos Bottling Corp., Cyber Bay Corp., DMCI Holdings Inc., Federal Chemicals Inc., Metro Alliance Holdings & Equities Corp., MRC Allied Industries Inc., Pacifica Inc., Pancake House Inc., Philippine National Construction Corp., Philippine Realty and Holdings Corp., RFM Corp., Swift Foods, Unioil Resources & Holdings, and Uniwide Holdings Inc.

Under the PSE’s disclosure rules, listed companies are required to submit their financial reports within 105 days after the end of the company’s fiscal year or within any valid extension thereof.