Financial Statement Preparation
Expert preparation of P&L Account, Balance Sheet, Cash Flow Statement, and Notes to Accounts in Schedule III format. Ready for statutory audit, ROC filing (AOC-4), tax audit (Form 3CB), bank submissions, and investor due diligence.
P&L, Balance Sheet, Cash Flow
Statements
Schedule III (Companies Act)
Compliance
3-7 Business Days
Timeline
₹4,999/year
Starting At
AOC-4, Form 3CB, ITR
For Filing
Ind AS / AS (ICAI)
Standards
What Are Financial Statements?
Financial statements are the formal records of the financial activities and position of a business. Under the Companies Act, 2013 and Schedule III, every registered company must prepare a complete set of financial statements comprising the Profit & Loss Account, Balance Sheet, Cash Flow Statement, Statement of Changes in Equity, and Notes to Accounts.
For companies, these statements must be prepared in the Schedule III format and comply with Ind AS or AS as applicable. They form the basis for statutory audit, ROC filing (AOC-4), tax audit (Form 3CB), income tax return (ITR-6), and bank loan applications.
The 2021 Schedule III amendment added significant new disclosures including ageing analysis of debtors/creditors, 8 mandatory financial ratios, CSR disclosures, and crypto asset reporting — making professional preparation more important than ever.
Components of Financial Statements
Profit & Loss Account
Comprehensive income statement showing revenues, cost of goods sold, gross profit, operating expenses, EBITDA, depreciation, interest, and net profit/loss for the financial year.
Balance Sheet
Financial position statement showing equity and liabilities on one side and non-current assets, current assets, and other assets on the other — compliant with Schedule III format.
Cash Flow Statement
Mandatory for most companies — shows cash generated and used in operating, investing, and financing activities, reconciled with opening and closing bank balance.
Notes to Accounts
Detailed disclosures required under Schedule III including accounting policies, contingent liabilities, related party transactions, segment information, and statutory notes.
Directors' Report
Annual report from the Board of Directors covering financial highlights, CSR activities, risk management, remuneration policy, and other statutory disclosures required under the Companies Act.
Schedules and Annexures
Supporting schedules for fixed assets, investments, loans, borrowings, and other financial statement items that provide granular detail not shown in the main statements.
Who Needs Financial Statement Preparation?
Professional financial statement preparation is essential for compliance, fundraising, and business credibility.
All Private Limited Companies
Every Pvt Ltd company must prepare audited financial statements annually for ROC filing (AOC-4), regardless of turnover or profit levels.
LLPs with Turnover Above ₹40 Lakh
LLPs with turnover exceeding ₹40 lakh or contribution exceeding ₹25 lakh must prepare and get accounts audited and file them with the MCA.
Proprietorships and Partnerships Seeking Loans
While not always mandatory, banks require professionally prepared financial statements to process credit facilities for sole proprietorships and partnership firms.
Companies with Tax Audit Requirement
Businesses and professionals above Section 44AB thresholds must have CA-prepared and certified financial statements as the basis for Form 3CB/3CD tax audit reporting.
Startups Raising Funds
Investors perform financial due diligence on audited statements. Startups preparing for seed, Series A, or any institutional funding must have proper financial statements ready.
Companies Filing for Government Tenders
Most government and PSU tenders require submission of audited financial statements for the past 2-3 years as part of technical and financial eligibility criteria.
Why Professional Financial Statement Preparation Matters
Properly prepared financial statements unlock compliance, credit, and capital.
Mandatory for AOC-4 Filing
Companies must file audited financial statements with the Registrar of Companies in Form AOC-4. Without properly prepared statements in Schedule III format, the ROC filing cannot be completed.
Essential for Bank Loan Sanction
Every bank and NBFC requires at least 2-3 years of audited financial statements for evaluating term loans, working capital, overdraft, and project finance applications.
Required for Tax Audit (Form 3CB)
Businesses above the Section 44AB threshold must have audited financial statements for the CA to certify Form 3CB + 3CD. No financial statements means no tax audit report.
Investor and Due Diligence Ready
Investors, private equity firms, and strategic acquirers demand professionally prepared, audited financial statements as the starting point for any due diligence process.
Ind AS and AS Compliance
Large companies must prepare Ind AS-compliant statements while smaller companies follow AS (Accounting Standards). Non-compliance attracts qualifications in the statutory audit report.
Accurate ITR Filing
The income tax return for companies (ITR-6) is directly derived from the financial statements. Errors in the financials cascade into incorrect ITR, attracting scrutiny and notices.
GST Reconciliation
Financial statements must be reconciled with GST returns (GSTR-1, 3B, 9). Unexplained differences between financial statement turnover and GST turnover attract GST audit and notice.
Stakeholder Reporting
Financial statements are the primary accountability document for shareholders, creditors, employees, and regulators. Their accuracy directly impacts trust in the management team.
Financial Statement Preparation - Step by Step
Our CAs follow a rigorous 8-step process to ensure accuracy and compliance.
Books of Accounts Review
Review all accounting entries in Tally or accounting software — purchases, sales, expenses, bank entries, journal entries — and identify errors, missing entries, or unreconciled items.
Bank Reconciliation
Reconcile every bank account balance as per books with bank statements. Identify and clear outstanding cheques, ECS mismatches, and bank charges not recorded in books.
Fixed Asset Register Update
Update the fixed asset register with all additions and disposals during the year. Compute depreciation as per Companies Act Schedule II rates (SLM or WDV method as applicable).
Closing Stock Verification
Obtain and verify the closing stock statement. Reconcile with purchase and sales records. Apply the consistent valuation method (FIFO/weighted average) as per accounting policies.
Ledger Scrutiny and Provisions
Scrutinise all ledger balances. Make year-end provisions for expenses payable, audit fees, income tax, gratuity, leave encashment, and any other accruals required by accounting standards.
Financial Statement Preparation
Prepare the Trading Account, Profit & Loss Account, and Balance Sheet in Schedule III format (for companies) or standard format (for firms/proprietorships) with complete notes to accounts.
Schedules and Notes to Accounts
Prepare all supporting schedules and disclosure notes as required — related party transactions, segment reporting, statutory dues, contingent liabilities, lease disclosures, and accounting policies.
Director/Partner Approval
Present the draft financial statements to the board of directors or partners for review and approval. Incorporate feedback and prepare the final signed set for statutory audit and MCA/IT filing.
Documents Required
Share these documents at the start of the engagement. The better organised your records, the faster and more accurate the financial statements.
New Schedule III Disclosures (2021)
The 2021 amendment added these mandatory disclosures to financial statements:
Timeline & Investment
Fast turnaround with CA-certified quality.
Timeline
Starting at ₹4,999/year
All-inclusive annual fee. Includes books review, financial statement preparation in Schedule III format, notes to accounts, and director approval set.
Frequently Asked Questions
Everything about financial statement preparation, Schedule III, and Ind AS compliance.
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