Q4 earnings can be reported till June 30

Markets regulator Sebi on Thursday allowed listed companies to defer the disclosure of fourth quarter (Q4) and annual earnings by 45 days and 30 days, respectively, to June 30. The regulatory move comes in the wake of the spreading coronavirus cases, which has led to the shutdown of business establishments across the globe.

According to prevailing norms, companies have to report their quarterly earnings within 45 days of the quarter end and annual earnings within 60 days. In case of any delay, the companies should report to stock exchanges the reasons, such as auditor resignation or court cases.

“It has been declared a ‘pandemic’ by the World Health Organization (WHO). Developments arising due to the spread of the virus have warranted the need for temporary relaxations in compliance requirements for listed entities,” said Sebi in a press statement.

The Sebi relaxed norms for has also compliance submitting governance report by one month and the quarterly shareholding pattern by three weeks.

Governance report for this quarter is due by April 15 but companies can now submit them by May 15, while for shareholding pattern the due date is April 21 but firms have been given time till May 15.

These steps follow the Ministry of Corporate Affairs' steps on Wednesday, relaxing norms for holding physical board meeting following the Covid-19 outbreak.

Analysts said the Sebi decisions are a great relief to corporate India. Many companies have proactively announced work from home in the recent weeks and this extension will be helpful for them to focus on the current business exigencies. It will give time to financial market regulators and business leaders to assess potential accounting guidance or additional disclosure requirements due to

Covid-9, they said. Globally, regulators are also encouraging companies to disclose the likely impact Covid19 will have on their businesses, earnings and revenues.