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Standalone or financial statements

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Sailesh Jain

24 Points Posted on 25 January 2020

Our firm has conducted the audit of Indian branches of foreign company .While issuing the audit report i want to know whether to mention as "Report on standalone financial statements" or "Report on financial statements" since the foreign company whose branches are situated in India has a parent organization in South Korea.

Replies (2)

Quick Summary

This discussion explores the correct terminology for audit reports concerning Indian branches of foreign companies. The core question is whether to title the report 'Report on Standalone Financial Statements' or simply 'Report on Financial Statements'. The consensus leans towards 'Standalone' if the audit pertains only to the Indian entity, even if it has a foreign parent. The distinction is important to avoid confusion, especially when the foreign company has multiple project offices in India.

CA Kiran Sutrave

352 Points Posted on 25 January 2020

If the company does not have any subsidiary in India and the audit report is for the single company, then you can write "Report on Financial Statements". If it has subsidiary in India but you are preparing the audit report for a single company irrespective of the financial statements of the subsidiary companies, you can write "Report on standalone Financial Statements".
This is my opinion. Please wait for others to reply