07 August 2009
Dear experts, I had a query regarding Clause 41 of the Listing Agreement.
For Eg: If a Co has declared a Net Profit of Rs 9 crores in the Unaudited results. and at the time of giving the Audited results, there comes a variation of 75 Lacs.
Limit prescribed by Listing Agreement is as follows:
) Where there is a variation between the unaudited quarterly or year to date financial results and the results amended pursuant to limited review for the same period, and –
(i) the variation in net profit or net loss after tax is in excess of 10% or Rs.10 lakhs, whichever is higher; or
(ii) the variation in exceptional or extraordinary items is in excess of 10% or Rs.10 lakhs, whichever is higher -
the company shall submit to the stock exchange an explanation of the reasons for variations, while submitting the limited review report. The explanation of variations so submitted shall be approved by the Board of Directors:
Provided that in case of results for the last quarter, the above sub-clause shall apply in respect of variation, if any, between the year to date figures contained in the unaudited results and the figures contained in the annual audited results.
So in that case, whether the Co needs to submit an explanation to the SE for the variation.
08 August 2009
No, Co. is not required to submit an explanations of the reasons of variation along with the limited review report as it is not exceeding the 10% i.e. 90 lakhs (10% which is 90 L or 10 lakhs which ever is higher).
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