TaxTMI 
TaxTMI 
Audit report to be submitted for purposes of APR submission to RBI
X X X X Extracts X X X X
X X X X Extracts X X X X
....udit report to be submitted for purposes of APR submission to RBI<br> Query (Issue) Started By: - Raam Srinivasan Swaminathan Kalpathi Dated:- 15-12-2025 Last Reply Date:- 18-12-2025 FEMA<br>Got 4 Replies<br>FEMA<br>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 Reply By YAGAY andSUN: The....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Reply: 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 alig....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ned with the disclosures made in the APR, thereby enabling effective regulatory oversight under the FEMA framework. Reply By YAGAY andSUN: The Reply: Practical format (indicative structure) * Independent Auditor's Report * Balance Sheet * Statement of Profit & Loss * Cash Flow Statement * Notes to Accounts * Certification / signing (with date & place) Important: Figures in APR must ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....exactly tally with audited financials. Reply By YAGAY andSUN: The Reply: 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 Reply By Ryan Vaz: The Reply: ? RBI does not prescribe a rigid, statutory form....
X X X X Extracts X X X X
X X X X Extracts X X X X
....at, but expects an Auditor's Certificate / Audit Report confirming the financials of the overseas entity that are reported in the APR. ? In practice, RBI accepts a standardized auditor's certificate covering specific confirmations. ? The certificate is uploaded as a PDF attachment along with APR. Audit Report / Auditor's Certificate - Practical Format (Accepted by RBI) Below is a widely accept....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed format used by Indian companies for APR filing: AUDITOR'S CERTIFICATE FOR ANNUAL PERFORMANCE REPORT (APR) To The Board of Directors [Name of Indian Company] * We have audited / examined the financial statements of [Name of Overseas JV / Wholly Owned Subsidiary], incorporated in [Country], for the financial year ended [Date]. * The financial statements have been prepared in accordance wi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....th the applicable accounting standards / laws of the host country. * Based on our examination and information provided to us, we certify that the particulars furnished in the Annual Performance Report (APR) relating to the above overseas entity are true and correct, including: * Capital invested * Reserves and surplus * Net worth * Turnover * Profit / Loss * Dividend declared / recei....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ved * Other financial particulars as reported * We further certify that: * The overseas entity has not defaulted in statutory dues in the host country (if applicable). * The Indian party's investment is in compliance with FEMA provisions relating to Overseas Direct Investment. * This certificate is issued for the purpose of submission to the Reserve Bank of India in connection with the A....
X X X X Extracts X X X X
X X X X Extracts X X X X
....PR filing under FEMA. For [Name of CA Firm] Chartered Accountants Firm Registration No.: Name of Partner: Membership No.: UDIN: Place: Date: Signature & Seal Who Can Issue the Audit Report? Scenario Auditor Overseas entity audited locally Foreign statutory auditor's report acceptable Audit not mandatory abroad Indian Statutory Auditor's certificate based on books Unaudited account....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s Management-certified financials + CA certificate (accepted in practice, but RBI may seek clarification)<br> Discussion Forum - Knowledge Sharing ....