At every annual general meeting of a company, the Board of directors is required to lay a balance sheet and a profit and loss account. The profit and loss account shall relate to the financial year of the company and the balance sheet, as at the end of the financial year. Financial Year in relation to financial statements shall be the period ending on the 31st day of March every year. * Transition period of two years was initially allowed for an existing company to align its financial year as per this provision.
The financial statements shall give a true and fair view of the state of affairs of the company or companies, comply with the accounting standards notified under section 133 and shall be in the form or forms as may be provided for different class or classes of companies in Schedule III. Where a company has one or more subsidiaries, it shall, in addition to financial statements, prepare a consolidated financial statement of the company and of all the subsidiaries in the same form and manner as that of its own which shall also be laid before the annual general meeting of the company along with the laying of its financial statement. It includes consolidation of subsidiary, associates and Joint Ventures, cash flow statement, statement of changes in equity, any explanatory note, disclosure of CSR activity, as prescribed in 2013 Act.
Financial statements shall be prepared in accordance with Schedule III of Companies Act, 2013.
A copy of the financial statements, including consolidated financial statement, if any, along with all the documents which are required to be or attached to such financial statements under this Act, duly adopted at the annual general meeting of the company, shall be filed with the Registrar within thirty days of the date of annual general meeting in such manner, with such fees or additional fees as may be prescribed within the time specified under section 403:
A One Person Company shall file a copy of the financial statements duly adopted by its member, along with all the documents which are required to be attached to such financial statements, within one hundred eighty days from the closure of the financial year.
Provided also that a company shall, along with its financial statements to be filed with the Registrar, attach the accounts of its subsidiary or subsidiaries which have been incorporated outside India and which have not established their place of business in India.
Annual General Meeting and other General Meetings:
- AGM is the annual event of shareholders of company and is a good example of shareholders’ democracy.
- First AGM to be held within 9 months of closure of financial year and every subsequent meeting within six months from the date of closing of financial year.
- Maximum gap between two AGMs shall be 15 months.
- Meeting shall be held either at the registered office of the company or at some other place within the city, town or village in which the registered office of the company is situated.
- No relief to foreign residents for attending general meetings through video conferencing or holding meetings outside the city where registered address of the company is situated. Every member has to present in person.
- At least 21 days’ notice shall be given for every general meeting.
- Any general meeting, in addition to AGM, shall be called “Extra-Ordinary General Meeting” (EGM).
- A One Person Company need not hold an AGM
Corporate Social Responsibility [Newly applicable reporting provision]
Every company having net worth of rupees five billion or more, or turnover of rupees ten billion or more or a net profit of rupees fifty million or more during any financial year shall constitute a Corporate Social Responsibility Committee of the Board consisting of three or more directors, out of which at least one director shall be an independent director. The Board’s report under section 134 shall disclose the composition of the Corporate Social Responsibility Committee. The Board of every company shall ensure that the company spends, in every financial year, at least two per cent of average net profits of the company made during three immediately preceding financial years, in pursuance of its Corporate Social Responsibility Policy.
- Accounting System Design & Implementation
- Financial Accounting
- Financial Reporting
- MIS Reports
- Financial Analysis
- Asset Accounting Management
- Depreciation and Amortization Schedules