ICAI moves SEBI for changes in company compliance norms
April, 16th 2012
The Institute of Chartered Accountants of India (ICAI) has approached the capital market regulator - the Securities Exchange Board of India (SEBI) for a four-pronged change in company compliance norms. Last week, the accounting regulator met the SEBI chairman U K Sinha to apprise him on those issues.
Firstly, the ICAI advocated the cause of extending the timeline to file annual audited statements by companies. As per SEBI norms, it is currently 60 days. This means, a company has to file its audited financial statement within May 30 (from March 31). The chartered institute is of opinion that it is difficult to audit large companies with greater number of foreign or domestic subsidiaries within the existing time limit.
"We have also asked SEBI to consider increasing the timeline of 15 minute given to companies to make results public after board meetings," said Jaydeep N Shah, president, ICAI told Moneycontrol.com.
"At the same time, we brought it to SEBI's notice that the government has introduced the revised schedule VI of Companies Act, 1956 for accounting standard. Following this, SEBI too has to notify it to the listed companies about the revised norms," he said.
As per SEBI norms, a company, after completing its board meeting, has to send the financial statements to the stock exchanges and media within 15 minute. ICAI feels, any extra time will facilitate auditing firms to take a final look before it goes in the public domain.
Finally, ICAI pleaded with SEBI to allow companies to present their consolidated financial statements in Ind - AS, the India version of International Financial Reporting Standards (IFRS) incorporated recently.
Ind - AS or Indian Accounting Standard is a combination of IFRS and India's own accounting standard. Currently, Indian companies are filing consolidated results either in IFRS format or in Indian GAAP (Generally Accepted Accounting Principle).
"We have received positive response from SEBI. The chairman assured us of reviewing those matters. However, he wanted us to send a letter detailing on the proposals and its implications. We have already done it. We are expecting some actions from SEBI," Shah said.