Financial Statement Analysis >> Standalone vs Consolidated financial reports
Rishi Kashyap
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Standalone vs Consolidated financial reports


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Many listed companies declare 2 different results in the same Financial statement viz Standalone and Consolidated financial reports, which may seems confusing to beginner Investors. In this section we will see the difference between Standalone and Consolidated reports and why does it matter to an Investor !

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Standalone vs Consolidated financial statement and which one to use ?
For this section  I request you to download March 2022 financial statement of SARDA ENERGY MINERALS
SARDA ENERGY REPORT   2022 March (NSE)SARDA ENERGY REPORT   2022 March (BSE)
The 16 pages of Mar 2022 Financial statement of SARDA ENERGY has
  1. Page 1 contains outcome of Board meeting and that company "Approved the audited standalone and consolidated results (financial and segment wise) for the financial year ended 31st March 2022" and "confirmed the Interim Dividend of Rs. 7.50 per share to be the final dividend for the year 2021-22"
  2. Page 2-5 contains the Standalone reports
  3. Page 6-9 contains the Consolidated reports
  4. Page 7-13 contains the CA statements for the audited report
  5. Page 13 list some different companies under 3 section : Subsidiaries, Associates and Joint ventures
  6. Page 16 contains the consolidated result statement for companies listed on Page 13

Page 13 shows as below Standalone vs Consolidated financial statement
It seems like SARDA ENERGY has stakes or owns other companies too, which affects its results ! These companies are categorized basis the ownership stakes held in a company
CategoryHolding stake (Shares)
Joint Venture CompanyControl some assets and operations
Associate Company20-50%
Subsidiary companyMore than 50%
Wholly-owned subsidiary company100%

Standalone financial statements show the financial report of the company alone that is in this case "SARDA ENERGY AND MINERALS LIMITED" and no other Legal Entities.
Consolidated financial statements ,however, shows the financial report of the company itself along with its 11 subsidiary companies, 1 associate of subsidiary companies and 2 joint ventures as listed on Page 13. Therefore, here the report details financial position of a group of companies all taken together.

Which report to use for Financial Statement Analysis ?
Quite obviously, if the subsidiary business affects the results of the company concerned then as an Investor you should always consider Consolidated Financial statements.

It seems like SARDA ENERGY FINANCIAL RESULTS are affected by its subsidiaries performance as below :
Financial ResultStandaloneConsolidated
Quarter (Mar 2022)213.01 Cr206.26 Cr
Annual (2021-2022)658.82 Cr806.76 Cr

Detailing how are these Consolidated financial reports prepared is beyond the scope of this article, however do remember that there are well laid Indian Accounting Standards for consolidation of assets and liabilities for each JV, associate and subsidiary.  Also, SEBI (Financial Intermediary of stock market) has issued specific circulars on the format and requirements of Consolidated Financial reports by listed companies in Indian Stock Exchange like NSE and BSE.

Once we are clear between Standalone and Consolidated financial report, lets move to financial results section of the Statement.

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Rishi Kashyap | | EDIT