India Financial Statements

India Financial Statements Skill v1.0

Verified rates & thresholds (accountant-reviewed)

Reviewed against the cited tax authorities by Mayur Deokar on 2026-06-06. Items flagged for further clarification are tracked separately and excluded here. This block is generated from verified skill_facts — edit the facts, not the prose.

Financial Statements

• Listed companies — Ind AS mandatory (MCA notification)
• Unlisted — net worth ≥ ₹250 crore — Ind AS mandatory (MCA notification)
• Unlisted — below ₹250 crore — AS (Indian GAAP) unless voluntary (MCA notification)
• Form — AOC-4 / AOC-4 XBRL / AOC-4 CFS (Companies Act s 137)
• AGM deadline — 6 months from FY-end (Companies Act s 96)
• Listed companies — Ind AS Applicability — Ind AS mandatory (MCA notification)
• Unlisted — net worth ≥ ₹250 crore — Ind AS Applicability — Ind AS mandatory (MCA notification)
• Unlisted — below ₹250 crore — Ind AS Applicability — AS (Indian GAAP) unless voluntary (MCA notification)
• Form (Filing) — AOC-4 / AOC-4 XBRL / AOC-4 CFS (Companies Act s 137)
• AGM deadline (repeat) — 6 months from FY-end (Companies Act s 96)
• AOC-4 deadline — 30 days from AGM (Companies Act s 137)
• XBRL mandatory if — Capital ≥ ₹5 crore OR turnover ≥ ₹100 crore; all listed; all companies implementing IND AS (MCA Rules)
• Late fee — ₹100/day of delay (Companies Act s 403)
• Statutory audit — ALL companies — mandatory (no size exemption) (Companies Act s 139)
• CARO 2020 — small company — Exempt (CARO 2020)
• Auditor rotation — individual — 1 term of 5 years (listed) (Companies Act s 139(2))
• Auditor rotation — firm — 2 terms of 5 years = 10 years (listed) (Companies Act s 139(2))
• Internal audit — Mandatory for every listed company. For unlisted public company: turnover ≥ ₹200 crore or loans > ₹100 crore or paid-up share capital ≥ ₹50 crore or deposits ≥ ₹25 crore. For unlisted private company: required if turnover ≥ ₹200 crore or loans ≥ ₹100 crore. (Companies Act s 138)

Section 1 -- Quick Reference

Quick Reference

Field	Value
Country	India (Republic of India)
Currency	INR
Filing authority	Ministry of Corporate Affairs (MCA) — Registrar of Companies (ROC)
Primary legislation	Companies Act, 2013 (Sections 128–138)
Supporting legislation	Companies (Accounts) Rules, 2014; Companies (Audit and Auditors) Rules, 2014
Accounting standards	Ind AS (Indian Accounting Standards — IFRS-converged) or AS (Accounting Standards)
Financial year	1 April – 31 March (mandatory for most companies)
Filing deadline	30 days from AGM (e-Form AOC-4); AGM within 6 months of year-end
Late filing penalty	Additional fee of INR 100 per day of delay
Digital filing	MCA21 portal (e-Form AOC-4 / AOC-4 XBRL / AOC-4 CFS)

Section 2 -- Reporting Framework

Reporting Framework

Entity type	Applicable standard
Listed companies	Ind AS (mandatory)
Unlisted companies — net worth ≥ INR 250 crore	Ind AS (mandatory)
Unlisted companies — net worth < INR 250 crore	AS (Indian GAAP) unless voluntarily adopting Ind AS
Banking companies	Ind AS (mandatory from 2019)
Insurance companies	Ind AS (mandatory from 2023)
NBFCs — net worth ≥ INR 250 crore	Ind AS (mandatory)
Small companies (Section 2(85))	AS (simplified requirements)
One Person Companies (OPC)	AS (simplified)

Ind AS applicability (phased rollout)

Ind AS applicability (phased rollout)

Phase	Companies covered	Effective from
Phase I	Listed + net worth ≥ INR 500 crore	1 April 2016
Phase II	Unlisted net worth ≥ INR 250 crore + listed on SME exchange	1 April 2017
Others	Voluntary adoption permitted; mandatory if thresholds met	Ongoing

Section 3 -- Size Thresholds

Small Company (Section 2(85) — effective 1 December 2025)

Small Company thresholds

Criterion	Threshold
Paid-up share capital	≤ INR 10 crore (INR 100,000,000)
Turnover (per last P&L)	≤ INR 100 crore (INR 1,000,000,000)

• Small Company qualification conditions — Both conditions must be met. Excludes: public companies, Section 8 companies, and companies governed by special Acts. (Section 2(85))

One Person Company (OPC) — Section 2(62)

OPC thresholds

Criterion	Threshold
Paid-up share capital	≤ INR 50 lakh
Turnover	≤ INR 2 crore

Implications of Small Company status

• Exempt from cash flow statement in financial statements
• Exempt from CARO 2020
• Exempt from auditor rotation requirements
• Abridged directors' report permitted
• No requirement for internal financial controls (IFC) reporting by auditor
• Board meetings: minimum 2 per year (instead of 4)

Section 4 -- Required Financial Statements

• legal basis — Under Section 2(40) and Section 129 of Companies Act 2013 (Section 2(40), Section 129)

Required Financial Statements

Document	All companies	Small company exemptions
Balance Sheet	Required (Schedule III format)	Required
Statement of Profit and Loss	Required (Schedule III format)	Required
Statement of Changes in Equity	Required (Ind AS companies)	Not required (AS companies)
Cash Flow Statement	Required	Exempt (small companies and OPCs)
Notes to Financial Statements	Required	Required (simplified)
Directors' Report (Section 134)	Required	Abridged version permitted
Auditor's Report	Required (all companies must be audited)	Required (but CARO exempt)
Consolidated Financial Statements	Required if subsidiary/associate/JV exists (Section 129(3))	Required if applicable

Section 5 -- Year-End Adjustments Checklist

Year-End Adjustments Checklist

#	Adjustment	India-specific notes
1	Depreciation	Schedule II to Companies Act prescribes useful lives; component accounting under Ind AS
2	Provisions	Ind AS 37 / AS 29; present obligation, probable, reliably estimable
3	Employee benefits	Ind AS 19 / AS 15; gratuity (actuarial valuation mandatory); leave encashment
4	Expected credit losses	Ind AS 109 (ECL model); AS 4 (incurred loss) for non-Ind AS
5	Inventory	Ind AS 2 / AS 2; lower of cost and NRV; FIFO or weighted average
6	Deferred tax	Ind AS 12 / AS 22; temporary differences; effective rate ~25.17% (new regime) or 30%+
7	Foreign exchange	Ind AS 21 / AS 11; monetary items at closing rate
8	Lease accounting	Ind AS 116 (right-of-use); AS 19 (finance/operating) for non-Ind AS
9	Revenue recognition	Ind AS 115 (5-step model); AS 9 for non-Ind AS
10	Government grants	Ind AS 20 / AS 12
11	Gratuity provision	Payment of Gratuity Act 1972; actuarial valuation by qualified actuary
12	CSR provision	Section 135; if criteria met, provide for unspent CSR amount

Section 6 -- Statement of Profit and Loss Format

• P&L format basis — Schedule III, Part II (by nature/function — Division I for non-Ind AS; Division II for Ind AS): (Schedule III, Part II)

I. Revenue from operations (a) Sale of products (b) Sale of services (c) Other operating revenue

II. Other income

III. Total income (I + II)

IV. Expenses: (a) Cost of materials consumed (b) Purchases of stock-in-trade (c) Changes in inventories of FG, WIP and stock-in-trade (d) Employee benefits expense (e) Finance costs (f) Depreciation and amortisation expense (g) Other expenses

V. Total expenses

VI. Profit before exceptional items and tax (III - V)

VII. Exceptional items

VIII. Profit before tax (VI + VII)

IX. Tax expense: (a) Current tax (b) Deferred tax

X. Profit for the period (VIII - IX)

XI. Other comprehensive income (Ind AS only) (a) Items not reclassified to profit or loss (b) Items that will be reclassified to profit or loss

XII. Total comprehensive income (X + XI)

Section 7 -- Balance Sheet Format

• Balance sheet format basis — Schedule III, Part I: (Schedule III, Part I)

EQUITY AND LIABILITIES

Shareholders' Funds (a) Share capital (b) Reserves and surplus (c) Money received against share warrants

Share Application Money Pending Allotment

Non-Current Liabilities (a) Long-term borrowings (b) Deferred tax liabilities (net) (c) Other long-term liabilities (d) Long-term provisions

Current Liabilities (a) Short-term borrowings (b) Trade payables - Total outstanding dues of MSMEs - Total outstanding dues of others (c) Other current liabilities (d) Short-term provisions

TOTAL

─────────────────────────────────────

ASSETS

Non-Current Assets (a) Property, plant and equipment - Tangible assets - Intangible assets - Capital work-in-progress - Intangible assets under development (b) Non-current investments (c) Deferred tax assets (net) (d) Long-term loans and advances (e) Other non-current assets

Current Assets (a) Current investments (b) Inventories (c) Trade receivables (d) Cash and cash equivalents (e) Short-term loans and advances (f) Other current assets

TOTAL

Note: Ind AS companies use Division II format which presents equity separately and has a different ordering.

Section 8 -- Notes to Financial Statements

Notes to Financial Statements

#	Disclosure	AS (non-Ind AS)	Ind AS
1	Significant accounting policies	Required (AS 1)	Required (Ind AS 1/8)
2	Property, plant and equipment	Required (Schedule III)	Required (Ind AS 16)
3	Share capital details	Required	Required
4	Borrowings (terms, security)	Required	Required
5	Trade payables (MSME ageing)	Required (MSMED Act)	Required
6	Related party transactions	Required (AS 18)	Required (Ind AS 24 — extensive)
7	Contingent liabilities and commitments	Required (AS 29)	Required (Ind AS 37)
8	Employee benefits / gratuity	Required (AS 15)	Required (Ind AS 19 — full actuarial)
9	Deferred tax	Required (AS 22)	Required (Ind AS 12)
10	Revenue recognition	Simplified (AS 9)	Required (Ind AS 115 — disaggregation)
11	Financial instruments	Not applicable	Required (Ind AS 107 — extensive)
12	Earnings per share	Required (AS 20) — listed only	Required (Ind AS 33)
13	Segment reporting	Required (AS 17) — listed	Required (Ind AS 108) — listed
14	CSR expenditure	Required (if Section 135 applies)	Required

Section 9 -- Filing Requirements

Filing Requirements

Item	Detail
Filing authority	MCA (Ministry of Corporate Affairs) via MCA21 portal
Filing form	e-Form AOC-4 (standalone); AOC-4 CFS (consolidated); AOC-4 XBRL (if applicable)
AGM deadline	Within 6 months from financial year-end (i.e., by 30 September for March year-end)
Filing deadline (AOC-4)	Within 30 days from date of AGM
Latest possible date	Approximately 31 October (for March year-end companies)
XBRL filing mandatory for	Companies with capital ≥ INR 5 crore OR turnover ≥ INR 150 crore; all listed companies
Filing fee	INR 200–600 depending on authorised capital
Additional fee (late filing)	INR 100 per day of delay (no maximum cap)
Digital signature	DSC of director + practicing professional (CA/CS/CMA)
Format	Figures in absolute rupees (not in lakhs/crores)

Non-filing consequences

• Additional fee accumulates daily
• Directors may be disqualified under Section 164(2) if 3 consecutive years' filings are missed
• Company may be struck off under Section 248

Section 10 -- Audit Requirements

Statutory audit (Section 139–147)

• Statutory audit requirement — ALL companies incorporated under the Companies Act 2013 must have their financial statements audited by a Chartered Accountant. There is no audit exemption by size in India. (Section 139–147)

Statutory audit table

Category	Audit requirement	CARO 2020 applicable?
Listed companies	Mandatory; audit + CARO	Yes
Public companies (non-listed)	Mandatory; audit + CARO	Yes (unless exempt)
Private companies (non-small)	Mandatory; audit + CARO	Yes (unless exempt)
Small companies	Mandatory; audit only	No — CARO exempt
OPC	Mandatory; audit only	No — CARO exempt
Section 8 companies (NPO)	Mandatory; audit only	No — CARO exempt

CARO 2020 exemption for private companies

• CARO 2020 exemption conditions — A private company is also exempt from CARO 2020 (in addition to small companies) if it simultaneously meets ALL of: Paid-up capital + reserves ≤ INR 1 crore; Total borrowings ≤ INR 1 crore (from banks/financial institutions); Total revenue ≤ INR 10 crore (CARO 2020)

Auditor rotation (Section 139(2))

Auditor rotation table (Section 139(2))

Company type	Individual auditor	Audit firm
Listed / prescribed class	1 term of 5 consecutive years	2 terms of 5 years (total 10 years)
Small companies	Exempt from rotation	Exempt from rotation
OPC	Exempt from rotation	Exempt from rotation

Internal audit (Section 138)

• Internal audit requirement conditions — Required if: Listed company; Unlisted public company with: turnover ≥ INR 200 crore OR paid-up capital ≥ INR 50 crore OR loans/borrowings ≥ INR 100 crore OR deposits ≥ INR 25 crore; Private company with: turnover ≥ INR 200 crore OR loans/borrowings ≥ INR 100 crore (Section 138)

Auditor qualification

• Auditor qualification requirement — Chartered Accountant (CA) holding Certificate of Practice, or firm of Chartered Accountants, registered with the Institute of Chartered Accountants of India (ICAI). For companies requiring CARO reporting, the auditor must also comply with Standards on Auditing (SA) issued by ICAI. (ICAI / CARO)

Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional before filing or acting upon.