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Our Bureau

Mumbai , Oct. 14

THE variation in the net profit after tax figure between unaudited and audited results of companies should not exceed 10 per cent or Rs 10 lakh, whichever is higher.

This is one of the changes in the listing agreement proposed by the Accounting Standards Committee of the Securities and Exchange Board of India. Even in the case of exceptional or extraordinary items, the percentage of variation has been brought down to 10 per cent fromthe existing 20 per cent.

The committee has also suggested that companies be required to prepare unaudited quarterly and half-yearly results within a month of the close of the quarter or half year.

This should be approved by the board of directors and subjected to a "Limited Review" by the auditors of the company (or by any Chartered Accountant in case of Public Sector Undertakings).

A copy of the Review Report should be submitted to the stock exchange within two months after the close of the quarter or half year.

Further, the current requirement says the company will have the option of publishing the consolidated quarterly or half-yearly financial results in addition to the unaudited quarterly or half-yearly financial results of the parent company.

However, the publication of consolidated annual financial results along with standalone financial results shall be mandatory.

The report now says the company shall have an option to publish either standalone or consolidated financial results in the newspapers.

However, an option exercised once cannot be changed for the entire financial year.

In case the company changes its option in any subsequent year, it should furnish comparative figures for the previous financial year in accordance with the option exercised.

The company will also be required to publish information pertaining to its consolidated results in respect of the group's turnover, net profit after tax and earnings per share.

The report has been placed for public comments.

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Audited, unaudited results — Cap on variation in net profit figures proposed

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