The Hindu Business Line : Two-thirds of BSE-listed cos yet to declare results

Fact-sheet
As of last Friday, 800-odd companies had announced their results for the quarter, one-fifth of the companies listed on BSE, both actively and not actively traded.
Even in market capitalisation terms they constitute more than a half: accounting for Rs 29.7 lakh crore of the total BSE market cap of Rs 57.9 lakh crore.

Our Bureau

Mumbai, May 5 Only a third of the 2768 companies whose scrips are actively traded on BSE have, so far, furnished their results for the quarter ended March 2008.

As of last Friday, 800-odd companies had announced their results for the quarter, one-fifth of the companies listed on BSE, both actively and not actively traded.

Even in market capitalisation terms they constitute more than a half: accounting for Rs 29.7 lakh crore of the total BSE market cap of Rs 57.9 lakh crore.

This phenomenon is nothing new, except that perhaps this year it appears there are more companies that have not been able to meet the April 30 deadline, said a chartered accountant. Even last year, there were several Sensex stock companies that brought out their fourth quarter results only in May; this year too many of the same companies have asked for extended time, he said.

By law, companies can ask for an extension of the deadline by up to June 30, and stock exchanges routinely grant them their requests, he said. But whether this delay is warranted, given the computerisation levels today, and whether it amounts to an investor-unfriendly practice, in letter or in spirit, that is arguable, he said

There could be various reasons for companies seeking an extension for their last quarter results — these could be a joint venture agreement not concluded, financial closures on projects not yet done, acquisition-related delays, and so on, said an analyst. (This fiscal it could even be do with dealing with market to market losses or gains on investments) But if companies are routinely asking for and exchanges also routinely granting extension, then maybe the pattern and reasons should be studied, he said. By itself an extension does not imply anything negative, but can the bulk of the listed companies be in an extraordinary situation? he asked.

“While there may be reasons, I personally don’t see why companies should take more than 30 days to furnish their results in ordinary circumstances,” said Mr V. Nagappan, Chairman, Federation of Indian Stock Exchanges.

SEBI does not come into the picture as of now, said an analyst familiar with legal matters. “The listing agreement is between company and exchange, and if the exchange is satisfied with the reasons then it is fine. Now whether the regulator might like to study this to see if there is more than what meets the eye, then it is a different issue,” he said.

There is a contrary view too. Mr Jayant Gokhale, Member, Central Council, Institute of Chartered Accountants of India, feels that the practice of rushing in with quarterly results is in fact not quite healthy.

There is a shortage of auditors in the country and it is better that companies take some time and deliberate over their results and file them, he said.

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