As Per The Companies Act, 2013 – FINANCIAL STATEMENT (CLAUSE 2(40)]

FINANCIAL STATEMENT as per the CLAUSE 2(40) of The Companies Act, 2013

• The term ‘financial statement’ has been defined to include:-
(i) A Balance Sheet as at the End of the Financial Year;
(ii) A Profit and Loss Account, or in the case of a company carrying on any activity
Not for Profit, an Income and Expenditure Account for the financial year;
(iii) Cash Flow Statement for the financial year;
(iv) A Statement of Changes in Equity, if applicable; and
(v) any Explanatory Note annexed to, or forming part of, any document referred to
in sub-clause (i) to sub clause (iv):
• The financial statement, with respect to One Person Company, Small Company
and Dormant Company, may not include the cash flow statement;

Signing of financial statement as per Clause 134 of The Companies Act, 2013

The financial statement, including consolidated financial statement, if any, shall be
approved by the Board of directors before they are signed on behalf of the Board at least
by the Chairperson of the company authorised by the Board or by two directors out of
which one shall be managing director and the Chief Executive Officer, if he is a director
in the company, the Chief Financial Officer and the company secretary of the company,
wherever they are appointed, or in the case of a One Person Company, only by one
director, for submission to the auditor for his report thereon.


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