Revised Clause 41 of Equity Listing Agreement
The Revised Clause 41 of Equity Listing Agreement provides the framework for the preparation, authentication and submission of the financial results by listed companies.
In order to rationalize and modify the process and formats for submission of financial results to the stock exchanges and also with a view to simplify the same, SEBI has decided to replace the existing Clause 41 of the Listing Agreement.
The Clause 41 of Equity Listing Agreement will be applicable for all filings made to stock exchanges with respect to the accounting periods commencing on or after July 01, 2007. Financial statements for such periods would be prepared, submitted and published as prescribed under the revised clause.
Preparation and submission of financial results
The financial results filed and published in compliance with this clause will be prepared on the basis of accrual accounting policy and in accordance with Uniform accounting practices adopted for all the periods.
The quarterly and year to date results will be prepared in accordance with the recognition and measurement principles laid down in Accounting Standard 25 (AS 25 “ Interim Financial Reporting) issued by the Institute of Chartered Accountants of India (ICAI)
The company will submit its Quarterly, Year to date and Annual financial results to the stock exchange in the manner prescribed in this clause.
The company has an option to submit the audited or unaudited quarterly and year to date financial results to the stock exchange within the end of the last month of each quarter. In case the company opts to submit unaudited financial results, they will be subjected to limited review by the statutory auditors of the company and a copy of the limited review report will be furnished to the stock exchange within two months, starting from the end of the quarter.
With respect to the previous quarter, the company has an option either to submit unaudited financial results for the quarter within one month starting from the end of the financial year or to submit audited financial results for the entire financial year within three months, starting from the end of the financial year.
In case of companies having subsidiaries, apart from filing standalone financial results, the company will have to file consolidated financial results to the stock exchanges.
If the auditor has exhibited any qualification or other reservation with respect to audited financial results submitted or published under this clause, the company should disclose such qualification or other reservation and impact of the same on the profit or loss, while publishing or submitting such results.
Format of reports
The quarterly financial results shall be in the format given in Annexure I for companies other than banks and that given in Annexure II for banks. Refer the following link for the formats as per Annexure I and II:
Consolidated financial results should be in the same format as is applicable to stand-alone financial results.
If the company has more than one reportable primary segment in terms of Accounting Standard 17 (AS 17 “ Segment Reporting) issued by ICAI, it should also submit quarterly or annual segment information as part of financial results in the format given in Annexure IV.
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