Financial Reporting & Audit Requirements

Financial Reporting Requirements

In India, financial reporting requirements for different types of entities are governed by relevant statutes. A brief summary of this is given below:

Types of entities Preparation of financial statements mandatory or not Relevant statute* Reporting standards of accounting records Remarks Reporting timeline#
Proprietorship Yes1 Income Tax Act, 1961 Cash basis of accounting / Accounting Standards as issued by the Institute of Chartered Accountants of India (ICAI) Applicable only if the turnover exceeds the limits specified under the relevant statute2 31 October* / 31 July (without audit)
Partnership Firm Yes Income Tax Act, 1961 Cash basis of accounting / Accounting Standards as issued by the ICAI Applicable only if the turnover exceeds the limits specified under the relevant statute3 30 September** / 31st July (without audit)
Limited Liability Partnership Yes Limited Liability Partnership Act, 2008 Cash basis of accounting / Accounting Standards as issued by the ICAI Only if the turnover exceeds the limits specified under the relevant statute4 Six months from the end of the financial year
Listed Public Limited Company Yes Companies Act, 2013, Securities and Exchange Board of India Guidelines, and any other relevant statute depending upon the nature of business and activities of the company Ind AS as notified under the Companies Act, 2013 or such other accounting standards as may be applicable under the relevant statute In case the company falls under a special statute, then the requirements of such special statute shall prevail 60 days from the end of the financial year5. Additionally, listed companies are also required to furnish quarterly financial results within 45 days from the end of the quarter except for the last quarter
Unlisted Public Company Yes Companies Act, 2013 Accounting Standards or Ind AS^ as notified under the Companies Act, 2013, or such other accounting standards as may be applicable under the relevant statute In case the company falls under a special statute, then the requirements of such special statute shall prevail6 Six months from the end of the financial year
Private Company Yes Companies Act, 2013 Accounting Standards or Ind AS^ as notified under the Companies Act, 2013, or such other accounting standards as may be applicable under the relevant statute In case the company falls under a special statute, then the requirements of such special statute shall prevail Six months from the end of the financial year
Charitable Trust Yes Relevant Trust Act and Income Tax Act, 19617 Cash basis of accounting / Accounting Standards as issued by the ICAI 30 September
Societies Yes Respective Society Act and Income Tax Act, 1961 Cash basis of accounting / Accounting Standards as issued by the ICAI 30 September8
Liaison Office/ Branch Office/ Project Office Yes Companies Act 2013, Foreign Exchange Management standards Act, Insurance Regulatory and Development Act 1999 Accounting standards as notified under the Companies Act, 2013 Six months from the end of the financial year.
Banks Yes Banking Regulation Act, 1949 Ind AS^^ as notified under the Companies Act, 2013, or such other accounting standards as may be applicable under the relevant statute 60 days from the end of the financial year.
Non-Banking Financial Institutions (NBFC) Yes Reserve Bank of India (RBI) and the Companies Act, 2013 Accounting Standards or Ind AS^^ as notified under the Companies Act, 2013, or such other accounting standards as may be applicable under the relevant statute Applicable only if the turnover exceeds the limits specified under the relevant statute 60 days / within 6 months from the end of the financial year from the end of the financial year

# Timeline for submission of financial information with relevant statutory authorities.

* The Preface to the Statements of Accounting Standards issued by the ICAI states the following - “Efforts will be made to issue Accounting Standards which are in conformity with the provisions of the applicable laws, customs, usages and business environment of our country. However, if due to subsequent amendments in the law, a particular Accounting Standard is found to be not in conformity with such law, the provisions of the said law will prevail, and the financial statements should be prepared in conformity with such law.” For e.g. - Banks need to prepare financial statements as per the Banking Regulation Act, 1949.

** This shall be extended to 30 November where transfer pricing regulations become applicable.

^ Ind AS

Ind AS are the Indian Accounting Standards converged with International Financial Reporting Standards (IFRS). Hence, Ind AS is primarily based on IFRS issued by the International Accounting Standard Board (IASB) with certain general differences between Ind AS and IFRS.

  • 1. When the turnover of a proprietorship is less than a specified threshold, financial reporting is not applicable
  • 2.INR 10 million in the case of business and INR 5 million – in the case of profession.
  • 3.Ibid
  • 4.As per the Limited Liability Partnership Act, 2008, the audit of books of account would be mandatory when the turnover exceeds INR 4 million and contribution exceeds INR 2.5 million
  • 5.The requirements have been stipulated by the Securities Exchange of Board of India (SEBI)
  • 6.Banking, financial services, insurance and electric companies where the form and contents of the financial statements are governed by respective statutes
  • 7.Depending upon the territory of registration and the purpose of the trust
  • 8.Where form no. 49C and annual activity certificate is required to be filed/furnished, then the date of furnishing such form and certificate shall be within 60 days from and six months from the end of the financial year respectively
Get in Touch
Mayank Lakhani
Senior Managing Director Assurance Advisory
Greenfield, Indirect Tax and GCC Region

Subscribe to our Newsletter

We are constantly working on sharing relevant alerts & publications to keep you informed on the latest developments.

Talk to Us for your India Entry