Online Link to Act/Rule/Legislation
Initial Setup or Ongoing Maintenance
Ongoing compliance requirement
Filing and Maintenance Requirements
Financial statement to include cash flow statement and statement of change in equity, if any.
The financial statements of a company are required to be prepared and be as per the form prescribed in Schedule III of the 2013 Act and has to comply with the accounting standards notified by the Central Government.
In case of one or more subsidiaries, a company shall, in addition to financial statements, prepare a consolidated financial statement of the company and of all the subsidiaries (including its associate companies and joint ventures). Provisions of the 2013 Act, as applicable to the preparation, adoption and audit of financial statements of the holding company shall correspondingly apply to the consolidated financial statements.
The company is also required to attach along with its financial statement, a separate statement containing the salient features of the financial statement of its subsidiary or subsidiaries.
In respect of all public companies which have a net worth of more than Rs. 1,00,00,000 (Rupees One Crore only) and turnover of more than Rs. 10,00,00,000 (Rupees Ten Crores only), the financial statements may be sent by electronic mode, subject to certain prescribed conditions.
If a company contravenes the provisions of this section, the managing director, the whole-time director in charge of finance, the Chief Financial Officer or any other person charged by the Board with the duty of complying with the requirements of this section and in the absence of any of the officers mentioned above, all the directors shall be punishable with imprisonment for a term which may extend to one year or with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees, or with both.
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