NOVA’S AUDITORS FILE A REPORTABLE IRREGULARITY WITH THE IRBA

We’ve mailed to all NDCAG members the link to a this week’s Moneyweb post on this topic

What is the nature of the irregularity?

Whilst not specifically stated in the article, it appears that the auditors have reported the company’s failure to publish its financial statements for 2019. In terms of the Companies Act, such publication must take place within six months after financial year-end (28 February)

What does this say about the company and what does it say to the Debenture Holders?

In addition to the “significant developments” detailed in the article there was a December, 2018 Moneyweb post in which it was contended that the company was, at that time, all but bankrupt

We’re now a year further down the line and the company, seemingly, can’t, or won’t (despite the legal risks) publish the overdue financials

Why not?

What are they hiding?

Note also the information in the latest article on the new content on the financial statements in the Nova web site (https://novapropertygroup.co.za/index.php/financial-statements-2019/#). We cannot say what appeared there prior to the complaint submission by the auditors but the article content implies that once the complaint had been lodged, Nova rushed to publish a statement of “explanation” as to when the financial statements will be available    

Are they fooling anyone with that statement?

So what if they make them available when they submit their CIPC (Companies and Intellectual Properties Commission) Annual Return with financial statements? That’s got nothing to do with the issue and is certainly not an acceptable explanation for Debenture Creditors. 

The fact remains that they are in default as regards their obligations under the Companies Act and surely, that failure requires an appropriate explanation and not some “delaying tactic” statement that is clearly designed to fob off any web site visitor who is looking for the 2019 financial statements that should have been published at the end of August.

Again, what are they hiding?

 

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