While Standalone FS [FY 23-24]was signed in Sept 24, CFS incl of foreign wholly owned SUBSIDIARY ( Calendar yesr 31.12.23) is being signed towards January 25 end by PCA.
Is it correct to skip udin at CFS level, as PCS withhold secretarial audit report citing CFS not being signed in time.
Please guide
As per the Institute of Chartered Accountants of India (ICAI) guidance, UDIN is mandatory for all audit reports, including CFS, issued on or after 1st July 2019.
However, there's an exception for CFS: - If the standalone financial statements (FS) of the parent company are signed before the CFS, and the CFS is signed within 60 days from the date of signing the standalone FS, UDIN is not required for the CFS.
In your case: - Standalone FS for FY 23-24 was signed in September 2024. - CFS, including the foreign wholly-owned subsidiary, is being signed towards the end of January 2025.
Since the CFS is being signed within 60 days from the date of signing the standalone FS (September 2024),
UDIN is not required for the CFS. Regarding the secretarial audit report, the Practicing Company Secretary (PCS) may withhold the report citing the delay in signing the CFS.
However, since the CFS is being signed within the stipulated timeframe, you can request the PCS to reconsider their decision. It's recommended that you consult with your auditor and PCS to ensure compliance with the relevant regulations and guidance.
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