September 19, 2019

Meaning of Financial Statement

Meaning of Financial Statement

The term financial statement is very comprehensive the term financial statement is defined under section 2 (40) of Companies Act 2013 as per this section

“financial statement” in relation to a company, includes—

(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):

[Provided that the financial statement, with respect to One Person Company, small company and dormant company, may not include the cash flow statement;]