BSE and NSE have asked the listed companies to follow uniform approach in submitting their quarterly unaudited consolidated financial results after it was found that some firms were not fulfilling mandatory norms of filing limited review report by statutory auditors.
As per Securities and Exchange Board of India (Sebi) norms, in case the listed entity opts to submit unaudited financial results, it has to be accompanied by a limited review report by the statutory auditors.
In two separate circulars, BSE and NSE noted that some companies have been submitting limited review report only with quarterly 'unaudited standalone financial results' and quarterly 'unaudited consolidated financial results' without the limited review report.
Accordingly, the exchanges said that the Sebi has clarified that "no specific exemption has been given from requirement of submitting the limited review report along with the unaudited consolidated financial results in case the unaudited standalone financial results have been accompanied by the limited review report".
"It is desirable that companies follow a uniform approach with regard to submission of limited review on consolidated financials," BSE said in the circular.
A limited review generally refers to audit of financial statements of a company on a quarterly basis.
Under listing regulations, listed companies are compulsorily required to disclose their financials on periodic basis (quarterly/annual/year to date) to the stock exchanges.
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