SEBI, MCA seek essential service status for Auditors of listed companies
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Market regulator Securities and Exchange Board of India (Sebi) has written to the Ministry of Corporate Affairs to take up the matter of permitting auditors of listed companies to operate from April 20, 2020 with the Ministry of Home Affairs. The Home Ministry through a recent notification exempted certain categories of workers from the central lockdown till May 3 to curb the spread of COVID-19.
Confirming the development, a government source further said the Corporate Affairs Ministry has, in turn, taken up the matter with the Ministry of Home Affairs.
Listed companies are required to disclose their audited annual financial statements within 60 days of the end of financial year, i.e. by May 31. However, Sebi has extended the deadline for financial results of listed companies for FY2019-20 to June 30, 2020 due to the COVID-19 outbreak.
Audited financial results constitute crucial information with respect to financial performance of a listed company and help investors to take informed investment decisions.
“It would be useful if the results could be disclosed well in time,” said an official aware of the developments.
“Auditing of financial results involves site visits, physical verifications and interactions with the management of the companies whose financial results are audited. This would take time and effort,” said the official adding that if auditors of listed companies were also permitted to operate from April 20, 2020, the financial results of such companies could be disclosed well in time.
A senior partner at a leading audit firm said that permitting auditors of listed companies to work may not be very useful as many industries are still not functioning.
“An auditor will only be able to verify information that the management of the company is able to provide. Auditors will only be able to audit companies which are currently functioning,” he said. #casansaar (Source - SEBI, IndianExpress)
Confirming the development, a government source further said the Corporate Affairs Ministry has, in turn, taken up the matter with the Ministry of Home Affairs.
Listed companies are required to disclose their audited annual financial statements within 60 days of the end of financial year, i.e. by May 31. However, Sebi has extended the deadline for financial results of listed companies for FY2019-20 to June 30, 2020 due to the COVID-19 outbreak.
Audited financial results constitute crucial information with respect to financial performance of a listed company and help investors to take informed investment decisions.
“It would be useful if the results could be disclosed well in time,” said an official aware of the developments.
“Auditing of financial results involves site visits, physical verifications and interactions with the management of the companies whose financial results are audited. This would take time and effort,” said the official adding that if auditors of listed companies were also permitted to operate from April 20, 2020, the financial results of such companies could be disclosed well in time.
A senior partner at a leading audit firm said that permitting auditors of listed companies to work may not be very useful as many industries are still not functioning.
“An auditor will only be able to verify information that the management of the company is able to provide. Auditors will only be able to audit companies which are currently functioning,” he said. #casansaar (Source - SEBI, IndianExpress)
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