SEBI Circular on revised formats for financial results and implementation of Ind-AS

The following is the summary of the circular issued by SEBI regarding revised formats for financial results and implementation of Ind-AS by Listed Entities:

1. Format

(a) Financial Results

• Till period ending 31st December 2016: Existing formats

• Post 31s Dec 2016 (i.e. for periods ending on or after 31.03.2017): Formats as per Schedule III to the Companies Act, 2013 (excluding notes and detailed sub-classification) shall apply

(b) Publishing results in Newspaper

New format prescribed in the circular in Annexure-1.

(c) Balance Sheet for the Half Year ended September 30, 2016

Format as per Schedule III to the Companies Act, 2013 (excluding notes and detailed sub-classification) shall apply

2. Segment Reporting

Minimum information to be provided:

Segment Revenue

Segment Results

Segment Assets

Segment Liabilities

• Unallocated items: to be shown separately
• Aggregate inter segment revenue: to be shown as deduction from segment revenue

3. Implementation of Ind-AS during First year (2016-17)

(a) Relaxations

(i) Timeline for submitting Financial Results

Quarter ending	As per LODR	Relaxed till
June 30, 2016	August 15, 2016	September 14, 2016
September 30, 2016	November 15,2016	December 14, 2016

·    (ii) Corresponding quarterly/year to date comparable figures

Quarter ending	Corresponding Q/YTD Ind-AS compliant figures
June 30, 2016	Quarter ended June 30, 2015
September 30, 2016	Quarter and Year to date September 30, 2015

Note: Limited Review / Audit of such comparable figures is not mandatory

·    (iii) Preceding Quarter Results

Quarter ending	Not mandatory
June 30, 2016	Ind-AS compliant figures for the preceding quarter and year ended March 31, 2016 is not mandatory
September 30, 2016	Ind-AS compliant figures for the Previous Year ended March 31, 2016 is not mandatory

Note: If the listed entity intends to submit these results, the same may be without limited review / audit the fact of which shall be disclosed.

·    (iv) For the quarter ending December 31, 2016

Ind-AS compliant financial results for the previous year ended 31 March, 2016 is not mandatory.

Note: If the listed entity intends to provide Ind-AS comparatives for the said period, the same shall be subjected to limited review or audit.

(v) Reserves (excluding revaluation reserve)

For the quarters of June, September and December disclosure of Reserves (excluding revaluation reserves) as per Balance Sheet of the previous accounting year ended 31 March, 2016 is not mandatory.

Note: It is prescribed in the existing format.

·    (vi) Consolidated Financial Results (CFR)

Option to submit quarterly / year-to-date CFR may be exercised in the second quarter (September quarter) instead of first quarter.

The above mentioned relaxations shall apply to the listed entities to which Ind-AS rules are applicable in subsequent phases during their corresponding first year of Ind-AS implementation.

4. Clarification regarding paragraph 32 of Ind-AS 101

Para 32 deals with Interim Financial Reports.

·    (a) Reconciliation of equity for the Previous Year ended March 31, 2016 shall be provided while submitting Audited Yearly Balance Sheet for the period ended March 31, 2017 and the same shall be provided while submitting the unaudited / audited Ind-AS Half-Yearly Balance Sheet for the period ended September 30, 2016 provided in case the listed entity intends to do so.

·    (b) Reconciliation of net profit / loss as mentioned un the unaudited / audited quarterly financial results shall be provided only for the corresponding quarter of the previous year.

IMPORTANT: All the above mentioned relaxations are only for the Financial Year 2016-17 which is the first year of implementation of Ind-AS.