Statutory Audit of Companies

Statutory Audit of Companies

A company is required to prepare financial statement for period ending 31st March every year. Such financial statement must be give a true and fair view of the state of affairs of the company and comply with the accounting standards notified by the central government under Section 133 of the Companies Act. Such financial statement must be prepared in the form and format which may prescribed for a specific type of company for a private limited company schedule VI is the appropriate form. The expression financial statement includes following items:

a balance sheet as at the end of the financial year;
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;
cash flow statement for the financial year;
a statement for changes in equity, if applicable; and
any explanatory note annexed to, or forming part of, any document referred.