Start with Search - Type your requirement here

Tuesday, April 6, 2010

Understand listing agreement amendments with new sub-clauses in 41 & 49 (position before & after 5th April 2010)

As part of a review of the extant policies of disclosure requirements for listed entities and  also  to  bring  more  transparency  and  efficiency  in  the  governance  of  listed entities  it  has  been  decided  to  specify  certain  listing  conditions  so  to  amend  the Equity Listing Agreement.  This post has list of new clauses inserted and ends with a summary table to understand position before and after amendment along with the effective date.

Voluntary  adoption  of  International  Financial Reporting Standards  (IFRS)  by listed entities having subsidiaries - Insertion of Clause 41(I) (g)
Various  regulatory  authorities  are  working  on  arriving  at  a  roadmap  for implementation of IFRS in India and on the steps to be taken for convergence of the Indian Accounting Standards with IFRS by April 01, 2011.

Requirement of a valid peer review certificate for statutory auditors- Insertion of Clause 41(1) (h)

It  has  been  decided  that  in  respect  of  all  listed  entities,  limited review/statutory audit reports submitted to the concerned stock exchanges shall be given only by those auditors who have subjected themselves to the peer review process of ICAI and  who  hold  a  valid  certificate  issued  by  the  ‘Peer  Review  Board’  of  Institute of Chartered Accountants of India.

Interim disclosure of Balance Sheet items by listed entities- Insertion of clause 41(V) (h) and Annexure IX

With  a  view  to  have more  frequent  disclosure  of  the  asset-liability position  of entities, it has been decided that listed entities shall disclose within forty-five days from  the  end  of  the  half-year,  as  a  note  to  their  half-yearly  financial  results,  a statement of assets and liabilities in the specified format.

Approval of appointment of ‘CFO’ by the Audit Committee- Insertion of Clause 49(II)(D)(12A)

 

GIST OF SEBI CIRCULAR 5TH APRIL 2010 – AMENDMENT OF LISTING AGREEMENT

Credits to Mr. CS Sriram Sharma for the wonderful presentation in table format:

SL. NO

CLAUSES

AMENDMENT OF CIRCULAR

1

Clause 24 (i)

Company while filing for approval with the Stock Exchange any draft scheme of amalgamation / merger / reconstruction, etc under Clause 24(f) is required to file with the Stock Exchange an Auditors’ Certificate that the accounting treatment contained in the scheme of amalgamation is in compliance with the Accounting Standards specified by ICAI.

Effective Date: 5th April 2010.

2

Clause 41 (I)(c)

Companies have an option to submit audited or un-audited quarterly and year to date financial results within 45 days of the end of each quarter instead of 1 month of the end of each quarter. [The above clause is for results to be submitted for other than last quarter]

3

Clause 41 (I) (c)

For Companies which opt to submit un-audited financial results, the copy of the Limited Review report should be furnished to Stock Exchange within 45 days from the end of the quarter instead of 2 months earlier. [The above clause is for results to be submitted for other than last quarter]

4

Clause 41 I (d)

In respect of the last quarter, Companies have an option to submit un-audited financial results for the quarter within 45 days of the end of the Financial Year OR if the Company decides to submit audited financial results for the entire Financial Year it should do so within 60 days of the end of the Financial Year

5

Clause 41 I (d)

The Limited Review Report in respect of the last quarter should be furnished to the Stock Exchange within 45 days of the end of the Financial Year

6

Clause 41 I (e) (i)

In case of a Company having subsidiaries, it may in addition to submitting quarterly and y-t-d stand alone financial results to the Stock Exchange within 45 days from the end of the quarter, also submit quarterly and year to date consolidated financial results within 45 days from the end of the quarter

7

Clause 41 I (e) (ii)

For a Company having subsidiaries, it should submit the annual audited consolidated financial results along with the annual audited stand alone financial results within 60 days from the end of the Financial Year to the Stock Exchange

8

Clause 41 I (ea) & (eaa)

A Statement of Assets & Liabilities as at the end of the half-year should be disclosed within 45 days from the end of the half-year to the Stock Exchange. The said information should be disclosed as a part of the audited or un-audited financial results for the half-year to the Stock Exchange so as to keep the shareholders informed about the solvency position of the Company

9

Clause 41 I (g)

If the Company has subsidiaries, it may opt to submit consolidated financial results as per IFRS

10

Clause 41 I (h)

Company to ensure that the Limited Review / Audit Reports is given by an Auditor who has subjected himself to the peer review process of the ICAI and holds a valid certificate issued by the Peer Review Board of the ICAI.

Effective Date: For appointment of Auditors after 1st April 2010.

11

Clause 41 V (g)

Disclosure of Balance Sheet items as per Cl 41 I (eaa) to be in the format specified in Annexure IX drawn from the Schedule VI of the Companies Act, 1956

12

Clause 41 VI (b)

Disclosure of Consolidated financial results along with the following items on a stand alone basis as a foot note (a) Turnover (b) Profit before Tax (c) Profit after tax instead of only consolidated financial results

13

Clause 41 VI (b) (iv)

Companies that are required to prepare consolidated financial results for the first time at the end of the Financial Year should exercise the option mentioned in Cl. 41 VI (b) in respect of the quarter during the Financial Year in which they first acquire the subsidiary

14

Annexure V to Clause 41 – Limited Review Report for Companies other than Banks

Disclosures regarding “Public Shareholding” and “Promoter & Promoter Group Shareholding” which have been traced from the disclosures made by the management and have not been audited by us inserted

15

Annexure VI to Clause 41 – Limited Review Report for Banks

Same as point 14 above.

16

Annexure VII & VIII  (both parts)

Except for the disclosures regarding ‘Public Shareholding’ and ‘Promoter & Promoter Group Shareholding’ which have been traced from the disclosures made by the management and have not been audited by us inserted after the words pursuant to the requirement of Clause 41 of the Listing Agreement

17

Annexure IX

Statement of Assets & Liabilities introduced

18

Clause 49 II D (12A)

Audit Committee to approve the appointment of CFO - Approval of the appointment of CFO after assessing the qualifications, experience and background of the candidate.

 

Unless effective date is mentioned above, all other provisions shall be effective from the date of circular as mentioned below..

Source: SEBI CIR/CFD/DIL/1/2010 dated 5th April 2010

14 comments:

Anonymous said...

thank sir

Anonymous said...

It�s really a nice and helpful piece of info. I�m glad that you shared this useful information with us.
Please keep us up to date like this. Thank you
for sharing.

Here is my web-site: adult fun

Anonymous said...

Great blog! I am loving it!! Will come back again.
I am taking your feeds also.

My page ... best dating

Anonymous said...

My brother suggested I would possibly like this blog.

He used to be entirely right. This publish actually made my day.
You can not imagine just how so much time I had spent for this information!
Thank you!

Feel free to surf to my website - 100 free online dating site

Anonymous said...

One thing I would really like to say is always that
before acquiring more computer system memory, take a look at the machine in which it could well be installed.
If the machine is running Windows XP, for instance, a memory limit is 3.
25GB. Putting in more than this would just constitute some sort
of waste. one's mother board can handle your upgrade volume, as well. Interesting blog post.

Here is my web blog :: dating personals site

Anonymous said...

e is often spent on real estate, food, plus entertainment.
Many individuals that do go to work either whole or part-time are not given insurance by means of their work so they get
along without because of the rising expense of health insurance in the us.
Thanks for the tips you talk about through this .


Also visit my site - green dating

Anonymous said...

Sweet blog! I found it while browsing on Yahoo News.
Do you have any tips on how to get listed in Yahoo News?
I've been trying for a while but I never seem to get there! Appreciate it

Also visit my website :: sex facebook

Anonymous said...

You actually make it appear so easy along with your presentation but I find this matter to be really
one thing that I feel I'd by no means understand. It seems too complicated and very wide for me. I am looking ahead in your next post, I�ll try to get the hold of it!

My webpage ... wiki.i-rpg.net

Anonymous said...

Hey! Do you know if they make any plugins to help with Search Engine Optimization?
I'm trying to get my blog to rank for some targeted keywords but I'm not seeing
very good results. If you know of any please share.
Cheers!

Here is my page - click dating

Anonymous said...

F*ckin� awesome things here. I�m very glad to see your post.
Thanks a lot and i am looking forward to contact you.
Will you kindly drop me a e-mail?

my web-site - free date service

Anonymous said...

You need to take part in a contest for top-of-the-line blogs on the web.
I'll advocate this web site!

Also visit my weblog ... alumni.smpn1lebaksiu.net

Anonymous said...

I'm not sure why but this web site is loading incredibly slow for me. Is anyone else having this problem or is it a problem on my end? I'll check
back later and see if the problem still exists.

Visit my homepage; adult finder

Anonymous said...

Have you ever considered publishing an ebook or guest authoring on other blogs?
I have a blog based on the same topics you discuss and would really like to have you share some stories/information. I know
my audience would value your work. If you are even remotely interested, feel free to send me an email.


Feel free to surf to my page ... www.sex contact uk facebook

Anonymous said...

I have seen plenty of useful issues on your internet site about pcs.
However, I've the thoughts and opinions that lap tops are still more or less not powerful adequately to be a option if you frequently do tasks
that require a lot of power, like video enhancing.
But for web surfing, microsoft word processing, and a lot other prevalent computer work they
are just fine, provided you may not mind the little
screen size. Thank you sharing your thinking.

My website facebook of sex (mow.so)

Post a Comment

CS Updatin...

See Yes -> Yes, ACS

↑ Grab this Headline Animator