Covid-related disclosures by Indian companies

While filing their financial results for FY20, corporations should adequately address the Covid-19 related concern and its impact on asset quality

Several listed Indian majors filed their quarterly and annual financial results for the financial year 2020 (FY20) with the stock exchanges in April 2020. The Covid-19 lockdown was announced by the government on March 24. Naturally, the impact of the Covid pandemic on the financial results would be immaterial for FY20. However, it is such an important event after the balance sheet date that companies cannot ignore mentioning it. Investors expect companies to disclose the possible impact of the pandemic on their financial health. The full financial implications of Covid-19 will only be reflected in the ongoing financial year and