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Reporting delays continue to plague CSX

Harrison White

Half of the equity listed firms on Cambodia Securities Exchange (CSX) missed their obligated fourth quarter 2021 reviews this week requesting to the regulator for more time to submit.

According to the Prakas of Corporate Disclosure, all listed companies shall submit a quarterly report to the regulator (for review) within 45 days after the end of a quarter before being released publicly.

This week however four out of the eight equity listed firms required to submit reviewed quarterly financials have requested to the non-banking regulator to extend their reports.

Some of the reasons given for the delays included “technical issues” with inventory and internet systems as well as ongoing valuation requirements.

The firms included Phnom Penh Autonomous Port (PPAP), PAS, Grand Twins International (GTI), and growth board listed DBD Engineering (DBD). GTI has requested to have their results delayed four times in two years (from 2020 to 2021).

Cambodia’s non-banking regulator has never issued a penalty to any firm for missing its reporting deadline.

CSX spokesperson told Cambodia Investment Review that according to regulation, listed company shall disclose the report within 45 days after end of the quarter.

“For this case, listed company submitted the request for delaying the quarterly report and also explained the reason why the report disclosure is delayed to the SERC. We think that the regulator will take stricter measure to listed companies when this securities market becomes more mature,” the CSX said.

Stephen Higgins, Co-Founder of investment and advisory firm Mekong Strategic Partners commented: “As much as we prefer timely disclosure, I do think 45 days is a fairly tight reporting deadline. You need to collate and review the information, then get board sign-off, which can take time.”

“In a mature, well-resourced capital market like Australia for example, the periodical reporting deadline is two months for non-audited numbers, and I think that would be more appropriate for Cambodia,” he added.

Maturing the local market

Cambodia’s stock market launched in 2011 and most recently welcomed condominium developer JS Land on the Growth Board under the ticker (CSX:JSL). The exchange now has a total of 15 listed companies including 9 stock-listed companies and 6 bond-listed companies.

Trading hit $23.9 million during the fourth quarter of 2021 – a 609% increase year-on-year as the exchange with total market capitalization at $1.75 billion down 26% over the same period.

SERC has currently issued licenses to eight auditing firms that can provide professional services in the securities sector.

They include: KPMG Cambodia, PricewaterhouseCoopers (Cambodia) – also known as PwC Cambodia – BDO Cambodia Ltd, Ernst & Young (Cambodia), Grant Thornton, Growe (KH) Co, Deloite Cambodia and Baker Tilly.

Cambodia Investment Review previously reported the CSX 2022 annual strategic outlook highlighting the exchange is projected to list eight more firms. All listed companies will next be required to submit their audited annual reviews by March 30.

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