Language:

How To Check the Financial Year

Your directors have pleasure in presenting the (No. of Financial Years) Annual Report together with the Audited Statement of Accounts of your Company for the financial year ended March 31, 2024.

i.     Check from the Annual Return/ Directors’ Report of previous financial year.

ii.     Check the incorporation date and calculate to verify.

Provisions:

Language:

How to check?

Section 134(3)(a) and Rule 8A(1)(a)

the WEB link where annual return i.e. MGT-7 of FY 2023-24 of company shall be published.

The Company is having website i.e.___________________________ and annual return of Company has been published on such website. Link of the same is given below:

OR

The Company doesn’t having any website.  Therefore, no need to of publication of Annual Return.

·      First Check whether Company having any website (on google, on letter head etc).

·      If Company having website check whether given link is working or not.

Provisions:

Language:

How to check?

Section 134(3)(a) and Rule 8A(1)(b)

Number of Meetings of the Board; held during the financial year 2023-24

During the Financial Year 2023-24, [**] meetings of the Board of Directors of the company were held. [Preferable to state the dates of meetings]

·      Check the Minutes of the Board Meeting.

·      Get the Index of Board Meetings from the Company.

Provisions:

Language:

How to check?

Section 134(3)(f) and Rule 8A(1)(e)

Explanation or comment by the Board on every qualification, reservation, adverse remark or disclaimer made by the statutory auditor in his report and/or by the secretarial auditor in the secretarial Audit Report.

The observations of the Statutory Auditors, when read together with the relevant notes to the accounts and accounting policies are self explanatory and do not call for any further comment.

·      Check the copy of Auditor Report for the same.

Provisions:

Language:

How to check?

134(3)(I) and Rule 8A(1)(f)

The State of The Company’s Affairs;

The Company is engaged in the business of _________________. There has been no change in the business of the Company during the financial year ended 31st March, ________.

Or there is _________________________ Changes in the business of the Company during the financial year ended 31st March, ________.

o   The company can find the Affairs of the Company from the Notes to Accounts (attached as part of Balance Sheet).

o   Company can find if there is any Change in the affairs of the Company by comparing the Notes to Account of Last financial year TO current financial year.

o   The business should match with the Main Object of MOA.

Language:

How To Fill the Figures

The Company’s financial performance for the year ended March 31, 2024:

Sec 134 (3)(q) r/w Rule 8(5) (i)&(ii)of and

Rule 8A(g)

Check the Statement of Profit & Loss Account for the year ended March 31, 2024. You will find required figures on the FACE of Statement of Profit & Loss Account.

Company can mention round off or actual figure as per their convenience.

Turnover: Section- 2(91)- "turnover" means the gross amount of revenue recognized in the profit and loss account from the sale, supply, or distribution of goods or on account of services rendered, or both, by a company during a financial year.]

Deferred tax:  As per Accounting Standard (AS) 22, deferred tax is the tax effect of timing differences.

Provisions:

Language:

How to check?

Sec 134 (3) (L) and Rule 8A (1)(h)

Details regarding any material changes / events, if any, occurring after balance sheet date till the date of the report to be stated

No material changes and commitments affecting the financial position of the Company occurred between the end of the financial year to which this financial statement relates and the date of this report.

Check the following

-       Trial Balance

-       Financial Position

-       Market Condition

Provisions:

Language:

How to check?

Sec 134 (3)(q) r/w Rule (8)(5)(iii) of Cos (Accounts) Rules, 2014 & Rule 8A(i)

Details of Directors and KMP appointed or resigned during the year.

Details of directors retiring by rotation in the ensuing Annual General Meeting

There has been no change in the constitution of Board during the year under review i.e. the structure of the Board remains the same

Check the Following:

-       DIR-12

-       MCA Data

-       Comparison from last annual return

-       Register of Director

Provisions:

Language:

How to check?

Sec 134 (3)(q) r/w Rule 8 (5) (vii) of Cos (Accounts) Rules and Rule 8A (1)(j)

Details of the order passed by the authorities which impacts the going concern status and company’s operations in future

No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and Company’s operations in future

Get the information from the Management of the Company and take MR Letter also.

Provisions:

Language:

How to check?

Section- 134(3)(h)

The Particulars of contracts or arrangement s with related party referred to in Section 188(1) of the Companies Act, 2013 for the Financial Year 2023-24 in the prescribed format AOC-2, has been enclosed with the report.

All related party transactions that were entered into during the financial year ended 31st March, 2024 were on an arm’s length basis and were in the ordinary course of business. Therefore, the provisions of Section 188 of the Companies Act, 2013 were not attracted. Further, there are no materially significant related party transactions during the year under review made by the Company with Promoters, Directors, or other designated persons which may have a potential conflict with the interest of the Company at large. Details of the transactions are given in AOC-2

Check the following:

-       AS-18

-       Minutes of Board Meeting & General Meeting (If any Resolution passed)

-       RPT Registers

-       Proof of Arm Length price

Provisions:

Language:

How to check?

Secretarial Standard - I

There is requirement to disclose in Directors Report that Company has complied with the provisions of Secretarial Standard.

The Company has complied with the provisions of Secretarial Standards.

Check the following:

·      Minutes

·      Meeting Documents.

Provisions:

Language:

How to check?

Sec 134 (3) (d) r/w
Sec 149 (6)

A statement of Declaration by Independent Director

The Company has received the declaration from the Independent Director.

Check the Copy of Declaration given by Independent Director.

Provisions:

Language:

How to check?

Section 134(3)(g)

particulars of loans, guarantees or investments under section 186;

Particular of Loans given, investments made, guarantee given and securities provided along with the purpose for which the loan or guarantee or security is proposed to be utilized by the recipient are provided in the financial statement (please refer Note _______ to the standalone balance sheet).

·      Check the Loan and Investment from the Assets side of Balance sheet and relevant Notes.

·      Check the Guarantee from the Contingent Liabilities and schedule. Also check from the Notes to Financial Accounts.

·      Check whether proper compliance of 186 made or not.

Provisions:

Language:

How to check?

Section- 134(3)(J)

The Board of the company has decided/ proposed to carry Rs____

to its reserves

No amount was transferred to the reserves during the financial year ended 31^st March, 2024.

The Board of the company has decided/proposed to carry Rs____ to its reserves.

Check the Assets side of Balance sheet, if there is increase in reserve other than the balance of profit and loss account.

Provisions:

Language:

How to check?

Section- 134(3)(k)

The amount, if any, which it recommends should be paid by way of dividend;

In view of the sustained working results during the year under review, the Board of Directors are pleased to recommend a dividend of Rs ___/- per equity share

OR

In view of the planned business growth, your Directors deem it proper to preserve the resources of the Company for its activities and therefore, do not propose any dividend for the Financial Year ended March 31, 2024.

First:

Check the Face of Statement of Profit and Loss Account; Amount of Dividend will be mention there.

Second:

Check the Copy of General Meeting resolution in case of final Dividend and check the Board Meeting resolution in case of interim Dividend.

Provisions:

Language:

How to check?

134(3)(M)

The details of Energy, Technology, Absorption, Foreign Exchange Earnings and Outgo are as under:

a)    Conservation of Energy:

b)   Technology Absorption:

c)     Foreign Exchange Earnings/ Outgo:

The particulars as required under the provisions of Section 134(3) (m) of the Companies Act, 2013 in respect of conservation of energy and technology absorption have been furnished considering the nature of activities undertaken by the company during the year under review.

Check the following

-       Financial of the Company.

-       Check with directors.

-       Take a MR Letter.

Provisions:

Language:

How to check?

134(3)(N)

Statement indicating the development and implementation of the risk management policy of the company Moreover, in case the Company has constituted a risk management committee, then the constitution and the terms of reference of the same to be disclosed.

The Company has in place a mechanism to identify, assess, monitor and mitigate various risks to key business objectives. Major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuing basis.

Check the policy prepared by the Company. If not prepare get it prepare.

Provisions:

Language:

How to check?

Section 22 of Sexual Harassment of Women at Workplace.

The employer shall include in its report the number of cases filed, if any, and their disposal under this Act in the annual report of his organization or where no such report is required to be prepared, intimate such number of cases, if any, to the District Officer.

The Company is committed to provide a safe and conducive work environment to its employees. During the year under review.

Your Directors further state that during the year under review, there were no cases filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

Get the information from the Management of the Company and take one MR Letter.

Provisions:

Language:

How to check?

Rule 8(5)(iv)

The name of companies which have become or ceased to be its Subsidiaries, joint ventures or associate companies

during the year;

The Company does not have any Subsidiary, Joint Venture or Associate Company.

OR

The names of companies which have become or ceased to be the Company’s subsidiaries, joint ventures or associate companies during the year under review is provided below:

First Check:

Check the Investment of the Company from Non Current Investment in the Balance Sheet, check the relevant Note and analyze about Subsidiary, Associate and Joint Venture as per definition given u/s 2(87) and 2(6) of the Companies Act, 2013.

Second:

Check from the (Accounting Standard) AS-18.

Provisions:

Language:

How to check?

Rule 8(5)(viii)

ICAI guidance note on adequacy of internal financial controls with reference to financial statements can be referred for this Purpose.

The Company has in place adequate internal financial controls with reference to financial statements. During the year, such controls were tested and no reportable material weakness in the design or operation was observed

Most listed companies are reading requirements related to IFC as those referring to IFC for financial reporting along with limited focus on the operational controls aspect.

Auditors are required to certify that the IFC in relation to financial statement are designed and operate effectively.