Types Of Balance Sheet ? Which One To Choose For Investing ?

Balance it is of two types.

1. Standalone Balance Sheet

2. Consolidated Balance Sheet

Standalone Balance Sheet contains the financials of the single main entity (and no other legal entity). While Consolidated Balance Sheet contains the added financials of the main entity along with subsidiaries. In later case the single entity will be recognised as the holding company.

For example: Kotak Mahindra Bank (which is a holding company of other Kotak Group companies) has two Balance Sheet in its Annual Report. In Standalone, Only Kotak Bank financials are considered. While in Consolidated the financials of Kotak Bank along with its group companies are added up.

Note: If you go to screener.in,You will find two options. One for Standalone and other for Consolidated.

      Kotak Mahindra Balance Sheet

So which one to use for Investing ?

For general investing purpose, You should consider Consolidated Balance Sheet. Because it gives you the overall picture the company.

But to track down the Core Company (Holding Company ), You should consider Standalone Balance Sheet.