A BRIEF ELUCIDATION OF COVID-19 IMPACT ON FINANCIAL PERFORMANCE OF INDUSTRIAL SECTORS IN INDIA

Abstract

The current study aims to examine the impact of the pandemic (Covid- 19) on the financial performance of some of the selected Indian sectors. The study targets all Indian firms listed on the Bombay stock exchange, which belong to the selected sectors. Most of the prior research on Covid-19 is theoretical, and only a few have conducted an empirical investigation. At a fundamental level, for certain companies, the current events and conditions may cast a significant doubt on their ability to continue as a going concern, particularly if large debt repayments are due within the next 12 months.

Measures to contain the spread of the pandemic could have significantly affected the business operations of many companies. This coupled with high level of economic uncertainty may trigger the need to perform impairment testing as at 31 March 2020, including for assets that are required to be tested for impairment annually. This would extend to cover assessment of right-of-use assets held by a lessee in a lease contract.