MUMBAI, May 12: Companies which were facing tough times in maintaining a good performance in the last year are extending their financial accounting period by another three to six months. A host of companies have already announced their plans to extend the period amidst fears of discouraging performance.

‘‘This is quite unusual. This was not the case in the last three to four years. Companies which had a good time so far are now escaping investor attention by extending the financial period,’’ said a senior official with a leading auditing firm.

As many as six companies extended their finanical period last week. The companies are: Indu Nissan Oxo, Hotel Rugby, Nucor Wires, Soundcraft Industries, Shree Cement and Sharp Industries. ‘‘At least 500 companies are likely to extend their financial accounting period in the coming weeks. Most of them are second-and-third-rank companies listed on the stock exchanges,’’ said a broker.

Indian companies normally have April-March accounting period. As per the listing norms, companies will have to declare the unaudited results within two months after the closure of the financial period. Around 6,650 companies are listed on the Bombay Stock Exchange (BSE). ‘‘It is to be seen how many of these companies will come out with their financial working results. Over 2,000 companies were listed in the last two years when the new issue boom was at its peak in the capital market. Majority of these companies have not implemented their projects. Many of them are existing only on paper. Investors should not be surprised if these companies don’t finalise their financial results. The question of dividend comes only after finalising the results,’’ said a merchant banker.

This means investors who had to suffer after the new issue boom will not be entitled for any dividend. Even established companies have been coming out with disappointing results. Century Textiles, which shocked investors by reporting a fall in profits from around Rs 197 crore to just over Rs 2.50 crore, is still being hammered on the stock exchanges.

According to a study by the Centre for Monitoring Indian Economy (CMIE), after showing healthy growth in the last several years, the aggregate profit after tax (PAT) of 35 companies which announced their financial results for the year ended March 1997 fell by one per cent. These results were considered as good, from reputed companies. The remaining results are likely to be disappointing.

Corporate sources say many companies which are likely to come out with small profits or fall in profits are unlikely to be allowed by the institutions to declare dividend. ‘‘Institutions are forcing companies to return loans taken from them before giving dividend. FIs forced companies like GSL to cancel dividend for the same reasons last year,’’ said a director.

The reasons attributed for the poor corporate performance are high interest rates, depression in the capital market, liquidity crunch, demand recession in many segments like cement, steel, petrochemical and textiles, rise in raw material costs and power shortage.

Besides, there other reasons. A director appointed by the Company Law Board on the Shaw Wallace and Company has gone on record against the company’s move to extend the period. SWC, which is facing FERA problems and mismanagement, initially extended the period from 12 month to 15 months. It is now extending the accounting period to 18 months.