Regarding Applicability of IND AS.

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Divyesh Ajmera (Querist)
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26 January 2025 If Networth of unlisted company as on 31/03/2025 will be more than 250 crores then when to apply IND AS? Since as per section -2(57) of companies act, 2013 which defines Networth include networth "as per audited balance sheet " then on what basis we applies IND AS from 01.04.2025 if audit will done by September month and and also in some cases done by November month?

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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12 August 2025 Great question about IND AS applicability!

Here’s how it works:

IND AS applicability for a financial year is determined based on the net worth as per the audited financial statements of the previous financial year.

So, for the financial year starting 1st April 2025 (FY 2025-26), you check the net worth as per the audited balance sheet of the previous year i.e., FY 2024-25.

Even if the audit for FY 2024-25 is completed later (September/November 2025), the applicability is based on the net worth as on 31st March 2025, once audited.

Implication:

If the net worth as per the audited balance sheet dated 31 March 2025 is more than ₹250 crores, IND AS is mandatorily applicable from 1 April 2025 (FY 2025-26).

You must apply IND AS for the whole FY 2025-26 even if the audit is done later.

If audit is delayed, you still have to apply IND AS once the audit is complete because the net worth as of 31/03/2025 determines applicability.

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