Restatement

A formal correction of previously issued accounts. The prior year is republished with different numbers, and the difference is the size of what was wrong.

A company that restates a year's profit from ₹615 crore to ₹470 crore has removed ₹145 crore that was reported and collected by nobody.

Restatements matter beyond their arithmetic because they establish that the control environment failed once. At a company that has restated, the base rate of a second problem is much higher than at one that hasn't, so a screen for restatements is a standard first filter in forensic work.

Read what was restated, not just how much. An error in a tax computation is a different species from an error in revenue recognition.