CS Uma Agarwal

UMA AGARWALSecurities and Exchange Board of India (SEBI) has issued Circular No. CIR/CFD/FAC/62/2016 dated July 05, 2016 regarding the Revised Formats for Financial Results and Implementation of Ind-AS by Listed Entities.

SEBI, in consultation with the market participants viz. Listed Entities, Stock Exchanges and Members of the Institute of Chartered Accountants of India (‘ICAI’), has now decided the following:

1. The existing formats prescribed in SEBI Circular No. CIR/CFD/CMD/15/2015 dated November 30, 2015 for Unaudited/Audited quarterly/half-yearly financial results to be submitted by the listed entities, with the stock exchanges, shall continue till the period ending December 31, 2016.

The formats for Unaudited/Audited/quarterly/half-yearly financial results results to be submitted by the listed entities, with the stock exchanges for the period ending March 31, 2017 shall be as per the prescribed format in schedule III to the Companies Act, 2013 (excluding notes and detailed classification). The Banking and Insurance Companies shall follow their own formats issued by their regulators.

2. Until Companies (Indian Accounting Standards) Rules, 2015 (‘Ind-AS Rules’) become applicable, the listed entities shall adopt Companies (Accounting Standards) Rules, 2006 (‘AS Rules’) as prescribed by the Ministry of Corporate Affairs (‘MCA’).

3. Accounting Standard (‘AS’) 17/ Indian Accounting Standard (‘Ind AS’) 108 of the AS Rules/ Ind-AS Rules shall contain these minimum information i.e Segment Revenue (including inter-segment revenue), Segment Results, Segment Assets (Aggregate inter-segment revenue shall be shown as a deduction from the segment revenue), Segment Liabilities.

Unallocated items shall be shown separately in respect of the above information.

4. The financial results published in the newspapers, in terms of Regulation 47 (1) (b) of the SEBI (LODR) Regulations, 2015 (‘Listing Regulations’),shall be in the format as prescribed below, which has now been slightly modified.

Format for Newspaper Publishing Purpose (Standalone / Consolidated)

[See Regulation 47(1) (b) of the SEBI (LODR) Regulations, 2015]

Sl. No.ParticularsQuarter
ending/Current
Year ending
Year to date
Figures/Previous
Year ending
Corresponding
3 months
ended in the
previous year
1.Total Income from Operations
2.Net Profit / (Loss) for the period (before Tax, Exceptional and/or Extraordinary
items#)
3.Net Profit / (Loss) for the period before tax (after Exceptional and/or Extraordinary items#)
4.Net Profit / (Loss) for the period after tax (after Exceptional and/or Extraordinary items#)
5.Total Comprehensive Income for the period [Comprising Profit / (Loss) for the period

(after tax) and Other Comprehensive
Income (after tax)]

6.Equity Share Capital
7.Reserves (excluding Revaluation Reserve) as shown in the Audited Balance Sheet of the previous year
8.Earnings Per Share (of Rs. ___/- each) (for continuing and discontinued operations) –

1. Basic:

2. Diluted:

Note:

a) The above is an extract of the detailed format of Quarterly/Annual Financial Results filed with the Stock Exchanges under Regulation 33 of the SEBI (Listing and Other Disclosure Requirements) Regulations, 2015. The full format of the Quarterly/Annual Financial Results are available on the websites of the Stock Exchange(s) and the listed entity. (URL of the filings).

b) The impact on net profit / loss, total comprehensive income or any other relevant financial item(s) due to change(s) in accounting policies shall be disclosed by means of a footnote.

c) # – Exceptional and/or Extraordinary items adjusted in the Statement of Profit and Loss in accordance with Ind-AS Rules / AS Rules, whichever is applicable.

IND-AS IMPLEMENTATION DURING THE FIRST YEAR

Relaxations are being given to the listed entities to which Ind-AS Rules are applicable from the accounting period beginning on or after April, 1, 2016:

For the quarter ending June 30, 2016 and September 30, 2016:

♣ This circular gives extension of one month regarding submission of financial results i.e The results for the quarter June 30, 2016 and September 30, 2016 may be submitted by September 14, 2016 and December 14, 2016 respectively.

♣ For the quarter ending June 30, 2016, Ind-AS compliant financial results for the corresponding quarter ended June 30, 2015 shall be provided. Whereas submission of Ind-AS compliant financial results for the preceding quarter and previous year ended March 31, 2016 is not mandatory.

♣ For the quarter ending September 30, 2016, Ind-AS compliant financial results for the corresponding year to date / quarter ended September 30, 2015 shall be provided. Whereas submission of Ind-AS compliant financial results and Balance Sheet for the previous year ended March 31, 2016 is not mandatory.

Note- However, in such cases, limited review or audit of the same is not mandatory.

The management has exercised necessary due diligence to ensure that the financial results provide a true and fair view of its affairs and hence have not been subject to limited review or audit

For the quarter ending December 31, 2016:

♣ The submission of Ind-AS compliant financial results for the previous year ended March 31, 2016 is not mandatory.

In case a listed entity chooses to provide Ind-AS comparatives for this period, the same shall be subjected to limited review or audit.

For all the aforementioned three quarters, disclosure of the line item – Reserves(excluding Revaluation Reserves), as per Balance sheet of the previous accounting year ended March 31, 2016, as prescribed in the existing formats for quarterly financial results is not mandatory.

In case the listed entity has subsidiaries / Joint Ventures / Associates, the entity may exercise the option under Regulation 33(3)(b)(i) of the Listing Regulations to submit quarterly/year-to-date consolidated financial results in the second quarter instead of the first quarter of the financial year and this option shall not be changed during the remaining part of the financial year.

This Circular shall come into force with immediate effect and the contents of the circular dated November 30, 2015, shall stand modified to the extent stated under this circular.

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