Starting from next fiscal, un-audited quarterly results of listed companies will also be subjected to limited review by auditors as against the current practice of caring out limited review of half-yearly results.
All other provisions of the clause 41, relevant to half-yearly limited review, will now be applicable to limited review of un-audited quarterly results also.
These are as part of changes ordered by the Securities and Exchange Board of India (Sebi) in the listing agreement of companies with stock exchanges.
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Following the recommendations of the Accounting Standards Committee (ASC), Sebi has come out with a fresh set of guidelines with regard to disclosures in respect of loans/ advances and investments in subsidiaries; disclosure of audit qualification and actions thereon; and limited review of accounts on quarterly basis.
Sebi in its order dated January 10, 2003, said that all the loans and advances given to subsidiaries and associates should be disclosed by name and amount in the annual accounts of the company.
With regard to audit qualifications and action thereon, Sebi said that exchanges should inform Sebi within seven days from the date of submission of the relevant audited results of cases where companies have failed to remore audit qualifications.
The current provisions of the listing agreement requires companies to furnish details regarding audit qualifications and in case of audit qualifications, stock exchanges shall ask the companies to explain why there is audit qualification in the accounts, and by when the company will remove the qualifications and publish accounts without qualifications.
On the issue of publishing consolidated financial results along with the stand-alone financial results, Sebi made it clear that it is applicable on annual basis only.
However, companies may have the option to publish consolidated results along with stand-alone financial results on a quarterly/ half-yearly basis, Sebi clarified.