Audit report to be submitted for purposes of APR submission to RBI

[Raam Srinivasan Swaminathan Kalpathi]

Could the experts enlighten on the format of the audit report to be provided with APR to be submitted to RBI relating to overseas subsidiaries?  Thanks

[YAGAY andSUN]

while the RBI does not mandate a standardized audit report format for submission along with the APR relating to overseas subsidiaries, it requires that the APR be substantiated by audited or duly certified financial statements that accurately reflect the financial performance and position of the overseas entity. The audit report must be professionally issued, legally valid, and fully aligned with the disclosures made in the APR, thereby enabling effective regulatory oversight under the FEMA framework.

[YAGAY andSUN]

Practical format (indicative structure)

1. Independent Auditor’s Report
2. Balance Sheet
3. Statement of Profit & Loss
4. Cash Flow Statement
5. Notes to Accounts
6. Certification / signing (with date & place)

Important: Figures in APR must exactly tally with audited financials.

[YAGAY andSUN]

Common mistakes to avoid

• Using management accounts when audit is mandatory
• Currency mismatch (APR must be in INR, converted correctly)
• Non-alignment between APR and audited numbers
• Missing audit report attachment in FIRMS portal

AI Summary

Guidelines for FEMA APR audit support: aligning overseas subsidiary financials with RBI requirements and FIRMS portal uploads For Annual Performance Report (APR) submissions to the Reserve Bank of India regarding overseas subsidiaries under FEMA, there is no prescribed audit report format. However, the APR must be supported by audited or duly certified financial statements that are professionally issued, legally valid, and consistent with the APR disclosures. A practical structure includes an independent auditor's report, balance sheet, statement of profit and loss, cash flow statement, notes to accounts, and proper certification with date and place. Figures in the APR must exactly match audited financials, be correctly converted to INR, and the audit report must be properly uploaded on the FIRMS portal.