After SEBI's push, companies report financial impact of coronavirus lockdown

SEBI had earlier asked listed companies to disclose to investors and stakeholders the impact of the coronavirus pandemic on their businesses

Days after SEBI asked companies to disclose financial impact of lockdown, over ten firms have reported an expected hit from the coronavirus crisis. Even as several listed companies earlier disclosed information on shutdown of operations, they didn't report on expected financial losses owing to lockdown. D-Mart, Titan, Leela Hotels are some of the companies to have revealed the estimated hit of coronavirus lockdown on their business so far.

While Leela Hotels estimated zero revenue in the June quarter, DMart expected the revenue to see a dip of 45 per cent. More companies are likely to release the information in the coming days. India has been under a lockdown since March 25 and the lockdown is likely to be lifted on May 31.

SEBI had earlier asked listed companies to disclose to investors and stakeholders the impact of the coronavirus pandemic on their businesses. Listed entities should evaluate the impact of coronavirus pandemic on their business, performance and financials, both qualitatively and quantitatively, to the extent possible and disseminate the same to investors, SEBI had said in a circular last Wednesday.

Sebi had also advised the stock exchanges(BSE and NSE) to bring the provisions of this circular to the notice of all listed entities and also disseminate the same on their websites.

The list of information that listed entities have been asked to disclose, subject to the application of materiality, include impact of the coronavirus outbreak on the business; ability to maintain operations including the factories or units or office spaces functioning and closed down; schedule, if any, for restarting the operations; steps taken to ensure smooth functioning of operations; estimation of the future impact of coronavirus on its operations.

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