Follow Us :

CS Kiran Kumar Guptha B

As per SEBI Circular dated October 05, 2011, the following is an important amendment to Clause 41 of Listing Agreement:

‘The issuer shall submit audited financial results for the entire financial year, within sixty days of the end of the financial year. The issuer shall also submit the audited financial results in respect of the last quarter alongwith the results for the entire financial year, with a note that the figures of last quarter are the balancing figures between audited figures in respect of the full financial year and the published year to date figures upto the third quarter of the current financial year.’

Accordingly, all listed entities are required to submit Audited Financial Results within 60 days of the end of Financial Year.

However, the SEBI by its Circular dated April 11, 2012, provided the flexibility of submitting Q4 unaudited results along with Limited review report within 45 days and thereafter submitting the audited results as soon as they are approved by the Board is provided by the SEBI for the FY 2011-12 considering difficulties in adopting the Revised Schedule VI. This facility has been given as a one-time measure for FY 2011-12 and the earlier provision will be restored(i.e yearend financial results within 60 days of end of FY) or the present facility may be reviewed at a later stage I.e. to extend the same or not.

Since the above relaxation is not extended by the SEBI, at present the previous requirements, the audited or unaudited quarterly financial results to the stock exchange within  forty-five days of end of each quarter (other than the last quarter) and audited financial results for the entire financial year, within sixty days of the end of the financial year, will prevail.

Please note that, the Clause 41(I)(eaa) of the equity listing agreement has not been amended to incorporate the intents of the SEBI. However, to keep the spirit of the law maker, we need to adhere to the compliance in spirit.

The Clause 41(I) is here by reproduced for ready reference:

c. The company has an option either to submit audited or unaudited quarterly and year to date financial results to the stock exchange within  forty-five days of end of each quarter (other than the last quarter), subject to the following:

i   In case the company opts to submit unaudited financial results, they shall be subjected to limited review by the statutory auditors of the issuer (or in case of public sector undertakings, by any practicing Chartered Accountant) and such limited reviewed results (financial results accompanied by the limited review report) shall be submitted within forty-five days from the end of the quarter.

ii  In case the company opts to submit audited financial results, they shall be accompanied by the audit report.

d. The company shall submit audited financial results for the entire financial year, within sixty days of the end of the financial year.  The company shall also submit the audited financial results in respect of the last quarter alongwith the results for the entire financial year, with a note that the figures of last quarter are the balancing figures between audited figures in respect of the full financial year and the published year to date figures upto the third quarter of the current financial year.

Compliance calendar as per Clause 41 of the equity listing agreement for reference is as follows:

1. Audited Financial Results

 

Listing Agreement – Clause 41
(i)Notice of Board Meeting to Stock Exchange- Intimation for holding of Board Meeting for considering

a)      the audited financial results in respect of the last quarter alongwith the results for the entire financial year

b)      statement of assets and liabilities and

c)      audit report.

7 clear days before the date of Board Meeting; (due date – May 22, 2013)
(ii)Paper Publication of Notice 7 clear days before the date of Board Meeting; (due date – May 22, 2013) one English daily newspaper having nationwide  circulation and one regional language  daily newspaper where the registered office of the company is situated
(iii)Board Meeting Within 60 days from the end of the quarter (due date  – May 30, 2013)
(iv)Fax (Simultaneously courier) of audited financial results in respect of the last quarter alongwith the results for the entire financial year statement of assets and liabilities and audit report to Stock Exchange Within 15 minutes from the conclusion of the Board Meeting
(v)Paper Publication of the financial results Within 48 hrs from the end of the Board Meeting one English daily newspaper having nationwide  circulation and one regional language  daily newspaper where the registered office of the company is situated
(vi)Submission of financial results  along with Newspaper cuttings to Stock Exchange Within 2 to 3 days from the publication of the financial results in the newspapers
Note:

  1. If the company has subsidiaries, while submitting annual audited financial results prepared on stand-alone basis it shall also submit annual audited consolidated financial results to the stock exchange within sixty days from the end of the financial year.
  2. The company shall ensure that the limited review/audit reports submitted to the stock exchanges on a quarterly/annual basis shall be given only by an auditor who has subjected himself to the peer review process of Institute of Chartered Accountants of India (ICAI) and holds a valid certificate issued by the Peer Review Board of the ICAI.

 Author:

CS Kiran Kumar Guptha B

B.B.A., ACS, LL.B.

AGR Reddy & Co.

Hyderabad.

Tags:

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

0 Comments

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Post by Date
June 2024
M T W T F S S
 12
3456789
10111213141516
17181920212223
24252627282930