Overview
Financial statements comprise the balance sheet, statement of profit and loss, cash flow statement (where required), statement of changes in equity (for Ind AS companies) and notes. For companies they must follow the format in Schedule III to the Companies Act, 2013 and the applicable accounting standards.
Well-prepared statements with complete notes make the audit faster and are what banks, investors and tax authorities rely on.
Who needs this service
Legal and regulatory framework
- Companies Act, 2013: Section 129 and Schedule III
- Accounting Standards (AS) and Indian Accounting Standards (Ind AS)
- ICAI guidance notes
Scope of services
Preparation
- Balance sheet, profit and loss and cash flow statement
- Notes to accounts and accounting policies
- Schedule III classification
Standards
- Ind AS or AS applicability and compliance
- Consolidated financial statements for groups
Audit support
- Schedules and working papers for the auditor
How the engagement works
- Trial balance reviewClosing entries and reconciliations.
- DraftingStatements and notes.
- ReviewConsistency and disclosure checks.
- FinalisationBoard approval and audit.
Documents typically required
Key forms and due dates
| Item | Timeline |
|---|---|
| Board approval | Before the AGM |
| AOC-4 | Within 30 days of the AGM |
Deliverables
- Financial statements with notes
- Supporting schedules
The scope of each engagement is agreed in writing and depends on the nature, size and regulatory requirements of the entity.
Frequently asked questions
When does Ind AS apply?
To listed companies and unlisted companies with net worth of ₹250 crore or more, and their holding, subsidiary and associate companies, among others.
Is a cash flow statement required for all companies?
No. One person companies, small companies and dormant companies are exempt.