Result filing extension to benefit scores of firms

Nearly a fifth of the top 500 companies will benefit from the market regulator’s move to extend the deadline for filing the March quarter results by another month. As of Friday, around 87 companies from the BSE500 universe were yet to disclose the results.

Of these, four companies were from the Nifty50 index. If one looks at the entire listed universe, only 1,373 of over 4,100 listed companies that declared their December quarter numbers are yet to file their March quarter results.

The original deadline to disclose the March quarter number was May 31. However, due to the disruption caused by the Covid-19 pandemic, the Securities and Exchange Board of India (Sebi) in March extended the deadline to June 30. Many from the corporate sector requested Sebi even more time. Acceding to the demand, the market watchdog issued a circular last week, granting India Inc time till July 31.

“Sebi has received representations from listed entities, chartered accountant firms, and industry bodies, seeking a further extension for preparation, finalisation, and submission of financial results …due to many reasons, like the continuing lockdown, subsidiaries and associates situated in containment zones making the audit process challenging and other operational challenges due to the COVID-19 pandemic,” the regulator said in a circular.

ONGC, Tata Steel, and Zee Entertainment were some of the Nifty50 firms which were yet to disclose their numbers until Friday.

Vidisha Krishan, partner, MV Kini & Co, said as most offices are functioning with minimum capacity and given the rising infections, more time to companies is only a fair thing to do.

Extending the deadline until July meant many listed companies would file their March quarter results when they should have disclosed the June quarter numbers.

Some companies have approached Sebi seeking an option to file their June quarter results along with that for the September quarter. Sebi is yet to take a call on this issue. Experts said Sebi has to do the balancing act between shareholders and providing relief to companies.

“From an investor protection perspective, it is important that this must not lead to a situation where, after March 31, the next set of financial results are only published in November. This will keep investors in the dark since they would have no information about the trend of the numbers for a critical six-month period,” said Gautham Srinivas, partner, Khaitan & Co.

Industry players said many companies were afraid of adverse stock market reaction as the real impact of the lockdown would reflect in the June quarter results.

Srinivas said the deadline to file June quarter numbers also should be extended until the end of August.