equity listing agreement_checklist

7/26/2019 Equity Listing Agreement_Checklist

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Section 21 of the Securities Contracts (Regulations) Act,1956 (SCRA) requires companies whose secu

recognise stoc" e#change to compl! with the conitions of the listing agreement with that stoc" e#ch

2&' of this Act prescries stringent penalt! not e#ceeing Rs$25 crores for failure to compl! with the li

n conucting an auit of a compan!, the auitor is require to ensure compliance with the stanars

other authoritati*e pronouncements issue ! the nstitute of Chartere Accountants of nia (+CA+)Consieration of -aws an Regulations in an Auit of %inancial Statements, eals with the auitor+s r

consier laws an regulations when performing an auit of financial statements$ Similarl!, another S

e consiere ! the auitor while ischarging his reporting oligation, is SA .2, /he Auitor+s Resp

to 0ther nformation in ocuments Containing Auite %inancial Statements$ %urther for re*iewing i

information, SR' 21, Re*iew of nterim %inancial nformation 3erforme ! the nepenent Aui

nee to e consiere$

n *iew of the ao*e, as auitors of liste companies, it is imperati*e that we consier the requirement

agreement while conucting our auits$ n preparing this chec"list, we ha*e consiere onl! the signif

equit! listing agreement which relate to auit$ Also, clauses which are rele*ant for fresh issue of share

consiere$

/his chec"list is ase on the equit! listing agreement ownloae from the 4ational Stoc" '#change

'ngagement teams are a*ise to refer to the latest a*ailale 'quit! -isting Agreement while using th

necessar! changes to the chec"list$


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ities are liste on an!

nge$ %urther section

sting conitions$

on auiting (SAs) an

$ SA 25(Re*ise),sponsiilit! to

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ce with the requirements of the Equity Listing Agreement is the responsibility of the m

ompliance. nly clauses considered significant to all Audits ha!e been included in the

g Agreement" as applicable for specific circumstances not co!ered herein.

rmation

Matter for consideration

8hether the Compan! close its transfer oo"s for the purposes agree ! the stoc" e#changeincluing eclaration of i*ien issue of rightsonus shares$

8hether the Compan! has gi*en at least two wor"ing a!s notice in a*ance of the ate of oarmeeting at which eclaration of i*ienissue of con*ertile eentures rights issueu!ac" ofsecurities is ue to e consiere$

8hether notice has een gi*en to 4S' in case the proposal for eclaration of onus is communicateto its :oar of irectors as part of the agena$;3lease note that no prior intimation is require aout the :oar specifies the format for electronic uploa? Corporate Actions=

8here the Compan! intens to unerta"e u!ac", whether stoc" e#change has een intimate 2 a!sin a*ance aout the :oar meetings at which the proposal for :u! :ac" of Securities is to econsiere

8hether such recommenation of i*ien or issue of rights shares is one at least fi*e a!s eforecommencement of the closure of its transfer oo"s or the recor ate fi#e for this purpose$

8hether the Compan! has intimate the stoc" e#change within 15 minutes of the closure of the oar

meeting in which it has consiere the matters referre elowi) all i*iens anor cash onuses recommene or eclare or the ecision to pass an! i*ien orinterest pa!ment@ii) the total turno*er, gross profitloss, pro*ision for epreciation, ta# pro*isions an net profits forthe !ear (with comparison with the pre*ious !ear) an the amounts appropriate from reser*es,capital profits, accumulate profits of past !ears or other special source to pro*ie wholl! or partl! forthe i*ien, e*en if this calls for qualification that such information is pro*isional or suect to auit$iii) ecision on :u! :ac" of Securities$


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8hether the offer ocument has een *ette ! S':

8hether the Compan! file the ao*e information ! e?mail in the format prescrie in Scheule > tothe -isting agreement;Scheule > specifies the format for %ormat for 'lectronic Bploa %inancial Results=

8hether the intimation aout i*ien eclaration also mentions the e#pecte ate ! which i*ienshall e paiispatche

8hether the Compan! has gi*en at least twent! one a!s notice with respect to pa!ment of interest on

eentures an ons an also reemption amount of reeemale shares or of eentures an ons8hether the Compan! has simultaneousl! issue the interest warrant an cheques for reemptionmone! or reeemale shares or eentures an ons

8hether the Compan! has intimate the stoc" e#change within 15 minutes of oar meeting hel inrespect of following mattersa) short particulars of an! increase of capital whether ! issue of onus shares through capitaliDation,or ! wa! of right shares to e offere to the shareholers or eenture holers, or in an! other wa!@) short particulars of the reissues of forfeite shares or securities, or the issue of shares or securitieshel in reser*e for future issue or the creation in an! form or manner of new shares or securities oran! other rights, pri*ileges or enefits to suscrie to @

c) short particulars of an! other alterations of capital, incluing calls@) an! other information necessar! to enale the holers of the liste securities of the Compan! toappraise its position an to a*oi the estalishment of a false mar"et in such liste securities$

;n respect of onus shares the intimation shoul also contain ate on which such onus shares woule creiteispatche$=

8hether the Compan! otaine in?principle appro*al for further issue of shares from the e#changesha*ing nationwie traing terminals where it is liste

8hether the Compan! file with the stoc" e#change an! scheme petition propose to e file withan! Court or /riunal us &91,&9 an 11 of the Companies Act,1956$;Such filing nees to e one at least one month prior to filing in Court/riunal=

8hether the Compan! has isclose pre an post arrangementamalgamation capital structure anshareholing pattern in the e#planator! statement forware to shareholers uner section &9& of theCompanies Act, 1956 or accompan!ing a propose resolution to e passe us 1 of the Companies

Act,1956

8hether the raft scheme of amalgamationmerger etc file with stoc" e#change is in compliancewith accounting stanars notifie uner 211(&C) of the Companies Act,1956$ Eas the certificate fromthe engagement team ta"en in this regar$;4ote 1


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8hether an! change in irectorate


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g) f !es, whether the Compan! has isclose net sales or income, e#peniture an net profit or lossafter ta# from new acti*ities unerta"en as result of change of name separatel! in the Annual Accountsfor & !ears from the ate of change in nameG

;%or pro*isions relating to frequent changes of names ! a liste compan! engagement team shoulensure compliance with the following pro*isions1$ A time perio of at least 1 !ear shoul ha*e elapse from the last name change$

2$ At least 5I of its total re*enue in the preceing 1 !ear perio shoul ha*e een accounte for !the new acti*it! suggeste ! the new name$

0r

/he amount in*este in the new acti*it!proect (%i#e Assets J A*ances J 8or"s in 3rogress) isatleast 5I of the assets of the compan!$ /he KA*ancesL shall inclue onl! those e#tene tocontractors an suppliers towars e#ecution of proect, specific to new acti*it! as reflecte in the newname$

/o implement the compliance of the aforesai pro*ision, the compan! shall sumit auitorLscertificate to the e#change$

/he new name along with the ol name shall e isclose through the we sites of the respecti*e stoc"e#changes where the compan! is liste for a continuous perio of one !ear, from the ate of the lastname change$=

h) n isclosing the ao*e etails, whether the ta# e#pense has een allocate etween the sai newline of usiness an other usiness of the Compan! in the ratio of the respecti*e figures of net profit

efore ta#, suect to an! e#emption, euction or concession a*ailale uner the ta# laws$

8hether the Compan! has forware to stoc" e#change copies of all notices sent to its shareholerswith respect to amenments to its


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Clause 41Preparation and Submission of Financial results

8hether the engagement team has otaine the management representation with respect to the factthat Compan! has file the requisite etails for each class of equit! sharessecurit! in the prescrieformat (refer the list of statements to e fille) on a quarterl! asis within 21 a!s from the en of thequarter$

;ncase of new listing the statement shoul e file one a! prior or listing an within 1 a!s in casesof an! capital restructuring of the Compan! resulting in more than2I change in total pai up sharecapital of the Compan!=

[List of statements (as may be applicable):Statement showing Shareholding PatternStatement showing holding of securities (including shares, warrants, convertible securities) of personsbelonging to the category Promoter and Promoter roup!

Statement showing holding of securities (including shares, warrants, convertible securities) of personsbelonging to the category Public! and holding more than "# of the total number of shares

Statement showing holding of securities (including shares, warrants, convertible securities) of persons(together with P$%) belonging to the category Public! and holding more than of the total number of sharesof the company

Statement showing details of loc'edin sharesStatement showing details of epository *eceipts (*s)Statement showing holding of epository *eceipts (*s), where underlying shares held by+promoterpromoter group- are in e.cess of "# of the total number of shares

Statement showing the voting pattern of shareholders, if more than one class of sharessecurities is issued bythe issuer/ 0

8hether the Compan! has pro*ie e?*oting facilit! to shareholers in respect of usinesses that cane transacte through postal allet an whether it is in compliance with the requirements for e? *otingspecifie in Companies (3assing of Resolution ! 3ostal :allet ) Rules,211

8hether Compan! has floate an! emplo!ee enefit schemes

f response to ao*e, is +!es+ whether the schemes in compliance with S': ('S03)Muielines,1999(As amene from time to time)

;4ote 'ngagement team ma! refer Assurance Alert 51 S': ('S0S an 'S3S) Muielines 1999 an'quit! -isting Agreement ? Clarifications an Amenments a*ailale in 4ational Accounting/echnical ataase=

8hether significant e*ent ha*ing earing on performanceoperation of the Compan! or an! otherprice sensiti*e information een promptl! intimate to the stoc" e#change oth at the time of

occurrence of the e*ent an susequentl! after the cessation of the e*ent

;Refer clause &6 of the agreement for e*ents that coul e consiere significant=

8hether the Compan! has pai listing an custoian fees to stoc" e#change an epositorsrespecti*el!

8hether the Compan! has minimum shareholing specifie in Rule 19(2) an Rule 19A of theSecurities Contracts (Regulation) Rules, 195.


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8hether Re*iew report is file along with unauite results$

oes the Compan! ha*e susiiaries

f !es

Eas the Compan! sumitte statement of assets an liailities at the en of each half?!ear$

II Manner of approval and autentication of te financial results

III! Intimation of Board Meeting

I"! #ter re$uirements

Comparison of the unauite results with the auite results$

a) oes the results inclue the quarterl!, !ear to ate an annual financial results$

) 8hether the results are prepare on accrual asis in accorance with uniform accounting practicesfor all perios$

8hether results are sumitte to the stoc" e#changes on a quarterl! asis within 5 a!s from the enof the quarter$

n case of auite financial results, whether the! are sumitte within 6 a!s from the en of thefinancial !ear$

8hether last quarter results in the auite annual results are isclose as alancing figures etweenauite figures in respect of full financial !ear an the pulishe !ear to ate figures upto the thirquarter of the current financial !ear$

Chec" that the Compan! has also sumitte quarterl! an !ear to ate consoliate financial resultswithin fort! fi*e a!s from the en of the quarter$

n case of annual auite results, chec" that the Compan! has file the annual auite consoliatefinancial results to the stoc" e#change within 6 a!s from the en of the financial !ear$

8hether the Compan! sumitte a statement of assets an liailities as at the en of financial !ear, assoon as the! are appro*e ! the :oar$ ;4ote /his requirement arises in cases where the Compan!opts to sumit unauite financial results for the last quarter of the financial !ear=

8hether announcement of unauite results mae to the stoc" e#change within 15 minutes of theclosure of the :oar


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8hether '#tra orinar! items, if an!, isclose in accorance with AS 5

8hether changes, if an!, in accounting policies isclose in accorance with AS 5

8hether the *ariation etween the unauite quarterl! or !ear to ate financial results an the resultsamene pursuant to limite re*iew for the same perio in respect of 4et 3rofit or -oss after ta# ore#ceptional or e#tra orinar! items e#cees 1I or Rs$ 1 la"hs, whiche*er is higher$ f !es, has theCompan! pro*ie reasons for such *ariation to stoc" e#change$ /he e#planation of *ariations sosumitte shall e appro*e ! the :oar of irectors$

f the engagement team has e#presse an! qualification or other reser*ation in respect of auitefinancial results sumitte or pulishe uner this clause, chec" whether the compan! has isclosesuch qualification or other reser*ation an impact of the same on the profit or loss, while pulishingor sumitting such results$

8hether the statutor! auit report of pre*ious !ear re*iew report of an! pre*ious quarter containean! qualification or reser*ation G

f !es, whether the Compan! inclue a note in the financial results as to how the qualification has eenresol*e an if it has not een resol*e, the reason therefor an the steps the Compan! intens to ta"ein the matter$

8here the Compan! has change its name suggesting an! new line of usiness, whether it hasisclose the net sales or income, e#peniture an net profit or loss after ta# figures pertaining to thesai new line of usiness separatel! in the financial results$;4ote /he isclosure is require to e continue for the three !ears succeeing the ate of change inname$=

;Refer clause &2, which states similar requirement=

f the compan! ha not commence commercial prouction or commercial operations uring thereportale perio, chec" whether the Compan! has isclose the etails of amount raise, the portions

thereof which is utiliDe an that remaining unutiliDe, the etails of in*estment mae peningutilisation, rief escription of the proect which is pening completion, status of the proect ane#pecte ate of commencement of commercial prouction or commercial operations$'#planation %or the purposes of this item (i) the etails mentione ao*e, shall e appro*e ! the :oar or a Committee thereof, ase oncertification ! the Chief '#ecuti*e 0fficer an Chief %inancial 0fficer, in compliance with su?clause()@(ii) the e#pression Namounts raiseO shall mean the procees of an! issue of shares or eenturesmae ! the compan!$

8hether the Compan! has prepare the quarterl! an !ear to ate results in accorance with therecognition an measurement principles lai own in Accounting Stanar 25 (AS 25 nterim%inancial Reporting) issue ! the nstitute of Chartere Accountants of nia (CA)Compan!(Accounting Stanars) Rules, 26, whiche*er is applicale$

8hether ncome an e#peniture arising out of transactions of e#ceptional nature iscloseseparatel!$


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"! Formats

Are the re*enues of the Compan! suect to material seasonal *ariations$ f !es, whether there isappropriate isclosure of the seasonal nature of Compan!+s acti*ities$ (/he Compan! ma! alsosupplement their unauite financial results into information for 12 month perios ene at theinterim ate (last a! of the quarter) for the current an preceing !ears on a rolling asis$)

8hether the Compan! isclose an! e*ent or transaction which occurre uring or efore the quarter

that is material to an unerstaning of the results for the quarter incluing ut not limite tocompletion of e#pansion an i*ersification programmes, stri"es an loc" outs, change inmanagement an change in capital structure$ (Similar material e*ents or transactions that ta"e placesusequent to the en of the quarter shall also e isclose$)

;Similar requirement specifie ! clause &6=

8hether the Compan! has gi*en following information in respect of i*ien pai or recommenefor the !ear incluing interim i*iens eclare

i)Amount of i*ien istriute or propose istinguishing etween ifferent classes of shares ani*ien per share also inicating nominal *alue per share$

ii)8here i*ien is pai or propose pro?rata for shares allotte uring the !ear, the ate ofallotment, numer of shares allotte pro?rata amount of i*ien per share an the aggregate amountof i*ien pai or propose on pro?rata asis$

8hether the Compan! has isclose to stoc" e#change, the effect of changes in composition of theCompan! uring the quarter, for instance usiness cominations, acquisitions or isposal ofsusiiaries an long term in*estments, restructuring an iscontinuing operations$

8hether the Compan! has pulishe alongwith quarterl! unauiteauite financial results, thenumer of in*estor complaints pening at the eginning of the quarter, recei*e an ispose offuring the quarter an l!ing unresol*e at the en of the quarter

8hether the results are rawn up an sumitte in accorance with format mentione in the listingagreement$

;Anne#ure %ormat for sumission of BnauiteAuite financial results ! companies other than an"s$Anne#ure for an"s %ormat for sumitting the quarterl! financial results ! an"s=

n case of consoliate results, whether aitional etails relating to minorit! interest, share ofassociates an other relate items separatel! isclose as aitional row items

8hether segment reporting is one in accorance with the format specifie in the listing agreement incase the Compan! has more than one reportale primar! segment as per AS 1.

;Refer Anne#ure > %ormat for Reporting of Segment wise Re*enue, Results an Capital 'mplo!e along withthe quarterl! results =


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Additional Matters for consideration

8hether the re*iew report is in the format specifie in the listing agreement;4ote 'ngagement team shoul refer to re*iew report template a*ailale in 4ational Assurance/echnical ataase $ Also refer Assurance Alert AA 5 -imite Re*iew Reports ? Reference toCompanies Act, 21&$=

n case of auite quarterl! financial results, whether the auit report is in the format specifie in the

listing agreement$;4ote 'ngagement team shoul refer to auit report template a*ailale in 4ational Assurance/echnical ataase =;Anne#ure > %ormat for the -imite Re*iew Report for companies (other than an"s)

Anne#ure > %ormat for the -imite Re*iew Report (for :an"s)=

n case of preferential issue of shares, whether the Compan! has furnishe quarterl! statement tostoc" e#change inicating *ariations etween proecte utilisation of funs anor proecteprofitailit! statement mae ! it in prospectus-etter of offer$ 8hether the same has een pulishealong with quarterl! results$ (/hisstatement nees to e gi*en in each of the proecte !ears$)

n case of preferential issuepulic issue rights issue of shares, whether the Compan! has furnishequarterl! statement to stoc" e#change inicating material e*iations etween proecte utilisation offuns anor proecte profitailit! statement mae ! it in prospectus-etter of offer$ Chec" whetherthe same has een pulishe along with quarterl! results after placing it efore the auit committee

8hether the Compan! has appointe Compan! secretar! as compliance officer to monitor the sharetransfer process an report to Compan!+s oar$

8hether the Compan! has complie with requirements of Corporate Mo*ernance$;4ote 'ngagement team shoul refer the separate compliance chec" list in respect of Clause 9 of the listingagreement on corporate go*ernance=

8hether the Compan! has notifie the stoc" e#change an also isseminate through its own wesite,immeiatel! upon entering into agreements with meia companies anor their associates, thefollowing information?(a) isclosures regaring the shareholing (if an!) of such meia companiesassociates in theissuer compan!$() An! other isclosures relate to such agreements, *iD$, etails of nominee of the meiacompanies on the :oar of the issuer compan!, an! management control or potential conflict ofinterest arising out of such agreements, etc$(c) isclosures regaring an! other ac" to ac" treatiescontractsagreements


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8hether the engagement team complie with the requirements of paragraph 6162 of SR' 21$;Refer CA?AAS: announcement ate 0ctoer 1,211 wherein the Council of the nstitute of Chartere

Accountants of nia, at its & the meeting, too" a *iew that in orer to compl! with requirements ofparagraphs 61 an 62 of SR' 21, ensuring filing of report with respecti*e stoc" e#changes woul e construeas sufficient compliance=

8hether the engage firm carr!ing out the statutor! auit of liste entit! hol a *ali peer re*iewcertificate


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nagement. This checklist is to be used for

hecklist. Engagement teams should refer to

Comments

16

19

19

19

19

19

2

Clause%eference

Compliance&es/'o/'A


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2

2

21,22

21,22

2(a)

2(c)

2(f)

2(h)

2(i)


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29

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&2

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&2

&2

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&2

&&


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&5

&5 :

&5C

&5C

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A


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1(1)(a), ()

1(1)(c)

1(1)(c)

1(1)()

1(1)(e)

1(1)(ea)

1(1)(eaa)

1(1)(f)

1()(a)

1()(c )(e)

1()()

1()


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1(>)(a)

1(>)()

1(>) (c)

1(>)()

1(>)(e)

1(>)(f)

1(>)(g)

1(>)(h)

1(>)(i)


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1(>)()

1(>)(")

1(>)(l)

1(>)(l)

1(>)(l)

1(>)(m)

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1(>)(f)

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.

9

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55


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(or)paper%eference


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equity listing agreement_checklist

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