The timeline for submission of consolidated financial results may be extended by two months from the end of a quarter against the current stipulation of one month, a committee set up by the Securities and Exchange Board of India (Sebi) has proposed.
Companies with global operations and having a large number of subsidiaries will benefit as they feel a month's time is too short to submit the consolidated results.
Sebi on Friday proposed changes to certain provisions of clause 41 of the listing agreement after considering the views of its committee on disclosures and accounting standards.
Companies are, however, divided on the actual impact of the proposal. While Ravi Nedungadi, president & CFO, UB Group, said it appears to be "reasonable and beneficial", K Sridharan, chief financial officer of Ashok Leyland, said it won't have much of an impact. "The one-month time frame was adequate as only unaudited results have to be submitted," he said.
The proposal also says that for banks, the term "turnover" for publication of financial results will constitute the same meaning of "total income".
Further, the committee has said that the relevant places of clause 41, which refers to accounting standards issued by ICAI only and does not refer to Company (Accounting Standards) Rules 2006, be changed to 'accounting standards issued by ICAI/Company (Accounting Standards) Rules 2006, whichever is applicable'.
The proposed amendments to clause 41 have been placed for public comments for 15 days, starting on Friday.
Also, with regard to publication of reference of standalone financial statement of an unlisted subsidiary if it is not available on website, Sebi has proposed that the existing requirement of giving reference to website is applicable only for the standalone financials of the listed holding company.
