Disclosure of quarterly financial results

1.0 Objective
This memorandum contains proposals to improve the continuous disclosure
requirements for interim financial results to be made in terms of Clause 41 of the
Listing Agreement.

2.0 Presentation of quarterly financial results
2.1 Clause 41 of the Listing Agreement provides the requirements for disclosure of interim
financial results by listed entities. An extract of the format specified in the said Clause is
given below:-
3 months
ended


Correspg 3
months ended
in the
previous year
Year to date
figures for
current period
ended
Year to date
figures for
the previous
year ended
Previous
accounting
year ended

(dd/mm/yyyy
)
(dd/mm/yyyy) (dd/mm/yyyy) (dd/mm/yyyy
)
(dd/mm/yyyy)
Particulars
Audited/
Unaudited*
Audited/
Unaudited*
Audited/
Unaudited*
Audited/
Unaudited*
Audited/
Unaudited*



2.2 As may be seen from the above, the extant requirement for disclosure of quarterly
results is to disclose the figures for the current quarter along with that of
corresponding quarter of the previous year. SEBI received suggestions to consider
inclusion of figures for the immediately preceding quarter as well which would
facilitate comparison of performance over the previous quarter. The matter was
referred to SEBI Committee on Disclosures and Accounting Standards (SCODA)
for discussion.

2.3 Discussions in the SCODA
The Committee noted that it would be more informative to include figures for the
immediately preceding quarter of the current year and a quarter to quarter


comparison is more relevant for investors to make investment decisions. Hence,
SCODA recommended inclusion of an additional column for the purpose.

2.4 SEBIs views and proposal
The above recommendation of SCODA seeks to improve the disclosure of interim
financial results by requiring additional disclosures of the figures for the immediately
preceding quarter. It is proposed that the recommendation of SCODA be accepted.

3.0 Disclosure of last quarter financial results
3.1 The Committee, during the above deliberations, also noted that as per the current
requirements, listed entities have an option to disclose audited annual financial
results within 60 days from the end of the financial year, in which case disclosure of
last quarters financial results is not mandatory. In line with the Committees
objective to facilitate quarter to quarter comparison of financial results, the
Committee suggested that while disclosing annual financial results, the figures of
last quarter may also be disclosed, along 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.

3.2 SEBIs views and proposal
The above suggestion of SCODA seeks to provide a clear picture of the quarter to
quarter performance of the listed entities and would also ensure that the annual
financial results are an accurate summation of the individual quarterly results of the
financial year. It is proposed that the recommendation of SCODA be accepted.

4.0 Proposal to the Board
The Board is requested to:-
o consider and approve the proposals contained in Paras 2.4 and 3.2 of the
memorandum.
o authorize Chairman to take necessary steps to give effect to the decision by
making suitable amendments to the Listing Agreement.