Fundamental Glossary / Indian Stock Market-Specific Fundamentals
Standalone Financial Statements
The accounts of one legal entity, without adding the line-by-line results of its subsidiaries.
Formula
Subsidiaries appear as investments, at cost or at fair value under the relevant standard, not as their underlying revenue and debt.
What it means
Standalone statements show the listed company's own revenue, its own debt, and the dividends it actually received from subsidiaries. They are the accounts of the legal person a lender to that entity has a claim on.
Dividends to shareholders are paid from the parent, so standalone cash and standalone reserves are the legal source of the dividend, subject to the Act.
How to read it
A wide gap between standalone and consolidated profit means the business lives in subsidiaries. That is normal for a holding company and a reason to read both.
What to watch
Standalone profit boosted by a one-time dividend from a subsidiary is not a new run-rate. Next year the subsidiary may retain the cash. Do not put a P/E on a one-time upstreamed dividend.
This note explains the term. It is not a research recommendation, a target price, or a comment on any security. Ratios and regulatory thresholds change; use the latest filing or circular for a live figure.