Does an India subsidiary need to follow IFRS, or is Ind AS mandatory instead?

Ind AS applies mandatorily to companies meeting specified net worth thresholds (currently ₹250 crore or more for unlisted companies, with listed companies and certain other categories covered regardless of size), and voluntarily to others; companies below the threshold generally follow Indian GAAP (Accounting Standards under the Companies Act) instead. Since Ind AS is converged with IFRS rather than identical to it, there are notable carve-outs — differences in areas like financial instrument classification, certain revenue recognition timing, and specific industry guidance — that mean a parent company's IFRS consolidation package can't simply be relabeled as the India subsidiary's statutory filing.

For group reporting purposes, most multinational parents require the India subsidiary to also prepare an IFRS-basis reporting package (often called a reporting pack or consolidation package) alongside its Ind AS statutory accounts, since the parent's consolidated financials need IFRS or US GAAP figures. This means many India subsidiaries end up maintaining two parallel sets of adjustments — statutory Ind AS and group-reporting IFRS — reconciled through a structured mapping of the differences, which is worth building into the finance team's monthly close process from the start rather than as a year-end scramble.