'Half of BSE 500 cos have to rotate auditors in April 2017'

Around half of the S&P BSE 500 companies may have to rotate their auditors in April this year, says a report.
Proxy advisory firm IiAS today also said that with Ind-AS (Indian Accounting Standards) requirements and mandatory auditor rotation catching up simultaneously with corporate India, meeting deadlines would become challenging.
"2016-17 will be a challenge as mandatory auditor rotation kicks in along with mandatory Ind-AS reporting for most listed companies.
"Extrapolating the data, we expect around 50 per cent of S&P BSE 500 companies will need to rotate their auditors in April 2017," the report said.
S&P BSE 500 companies are the top 500 firms listed on the leading stock exchange BSE.

Under the Companies Act, 2013, certain classes of entities are required to rotate their auditors after a specific time period.

According to the report, companies with weak financial performance continue to wait till the last minute to hold their AGMs (Annual General Meetings).
"In FY16 too, companies holding their AGMs in September have had the lowest median return on equity," it added.
IiAS said this is in comparison to companies that hold their AGMs in June, July or August.
"That companies performing better are eager to hold their AGMs is belied only by the ROE of companies holding their AGMs in June - June AGM companies have, in FY15 and FY16, had lower ROEs (Return on Equity).

"This is largely attributable to how public sector banks perform - since they dominate the AGM season in June," the report noted.
Further, the report said that in 2016, as many as 64 of the 477 companies reported losses and out of them, 30 firms held their AGMs in September.