—Guide
Limited Review of Quarterly Results Under SEBI Regulation 33 Explained
What SEBI's Regulation 33 requires of listed companies each quarter, what a limited review under SRE 2410 involves, and how it differs from an audit.
Listed companies publish financial results every quarter, and those results must be either audited or reviewed by the company's statutory auditor. Most choose a limited review for the first three quarters. This guide explains the requirement and what a review involves.
The Requirement: Regulation 33
Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 requires listed entities to submit quarterly and year-to-date financial results to the stock exchanges within the prescribed time after each quarter, and annual audited results within the prescribed time after the year end. Quarterly results must be either audited or subjected to a limited review by the statutory auditor.
Standalone and Consolidated
Listed companies with subsidiaries submit both standalone and consolidated results, and both are covered by the review.
What a Limited Review Is
A limited review is performed under the ICAI's Standard on Review Engagements 2410, which governs reviews of interim financial information by the entity's own auditor. It consists mainly of:
- Inquiries of management about the financial information, accounting policies and significant events.
- Analytical procedures, comparing results with prior periods and expectations and investigating unusual movements.
- Reviewing minutes, significant transactions and key estimates.
It doesn't include the detailed testing, confirmations and inspection that an audit involves.
The Conclusion
A review gives negative assurance: the auditor states whether anything has come to their attention that causes them to believe the results aren't prepared in accordance with the applicable framework. If something has, the conclusion is modified, and the company must publish the modification.
Approval and Filing
- The audit committee reviews the results and the review report.
- The board approves the results.
- The results are filed with the stock exchanges and published.
Why It Matters
Quarterly results move share prices and are relied on by investors, analysts and lenders. Reviewed results give them basic comfort, and quarterly reviews surface issues early enough to fix them before the annual audit.
Getting Help
Think Filing supports listed companies with quarterly close and results preparation, and coordinates the review process with their auditors.