ICAI

ICAI Advisory on reporting net profit/(loss) after tax & cash flows of branches of listed company

ICAI Advisory on reporting net profit/(loss) after tax & cash flows of branches of listed company as per SEBI Circular

Advisory on Exhibit B3 of SEBI’s Circular dated 29th March 2019 regarding Procedure and formats for limited review / audit report of the listed entity and those entities whose accounts are to be consolidated with the listed entity

1    As the members are aware that SEBI has issued a Circular dated 29th March 2019 regarding Procedure and formats for limited review / audit report of the listed entity and those entities whose accounts are to be consolidated with the listed entity. Exhibit B3 of the abovementioned Circular pertains to “Independent Auditor’s Review Report on Review of Consolidated Unaudited Quarterly and Year to date Financial Results for banks”. Point Nos. 7 and 8 of Exhibit B3 require quantification of (a) total assets (b) total revenue (c) Total net profit/(loss) after tax (d) cash flows(net) with respect to branches of banks.

2    It has come to our notice that the members are facing implementation challenges while reporting as per Exhibit B3 since reporting of net profit/(loss) after tax and cash flows of branches is not practically possible. The matter was taken up with SEBI and it has been advised that ICAI may issue necessary guidance to the members on the matter.

3    Accordingly, the members are advised that while reporting as per Exhibit B3 they need not report on net profit/(loss) after tax and cash flows of branches if such details are not contained in the financial statements.

4    This Advisory will come into force from immediate effect.

Chairman
Auditing and Assurance Standards Board

Vice-Chairman
Auditing and Assurance Standards Board

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