The Securities and Exchange Board of India on 20th May 2020 has directed the listed companies to make disclosure about the impact of COVID-19 pandemic on their business to investors and stakeholders.
Listed entities should endeavor to ensure that all investors have access to timely, adequate, and updated information. Towards this end, entities are encouraged to evaluate the impact of the CoVID-19 pandemic on their business, performance, and financials, both qualitatively and quantitatively, to the extent possible and disseminate the same.
Further SEBI has issued an illustrative list of Information that listed entities must disclose which includes steps taken to ensure smooth functioning, schedule for restarting operations, ability to maintain operations in factories/units/office spaces functions and closed down, estimation of the future impact of Covid-19 on its operations. Further, companies have to include the impact on capital and financial resources, profitability, liquidity position, ability to service debt and other financing arrangements, supply chain, assets, internal financial reporting and control, and product or services demand.
SEBI has asked for companies to specify the impact of COVID-19 pandemic on their financial statements to the extent possible.
Click here to read the Notification.
