Companies Act, 2006

Such financial statements shall be prepared in the format prescribed under the prevailing law.

(3) The annual financial statements under sub-section (1) shall be approved by the board of directors and audited.

(4) In addition to the annual financial statements prepared pursuant to sub-section (1), the board of directors of every public company, or every private company with a paid-up capital of one crore rupees or more or with an annual turnover of ten crore rupees or more, shall also prepare within the same period a separate report of the board of directors stating the following details:

(ka) An overview of the business of the past year,

(kha) Any impact on the company's business from national and international circumstances, if any,

(ga) The board of directors' views on the achievements of the current year up to the date of the report and on matters to be done in the future,

(gha) Industrial or business relations of the company,

(nga) Changes in the board of directors and the reasons therefor,

(cha) Key factors affecting the business,

(cha) If any defect is mentioned in the audit report, the board of directors' response thereto,

(ja) The amount recommended for distribution as dividends,

(jha) If shares have been forfeited, the number of shares forfeited, the face value of such shares, the total amount received by the company in respect of such shares before forfeiture, the amount received by the company after selling such shares after forfeiture, and details of refunds made for forfeited shares, if any,

(nya) A review of the progress of the business of the company and its subsidiary during the past fiscal year and the position at the end of that fiscal year,

(ta) Major transactions completed by the company and its subsidiary during the fiscal year, and any significant changes in the company's business during that period,

(tha) Information provided to the company by its substantial shareholders during the past fiscal year,

(da) Details of share ownership taken by directors and officers of the company during the past fiscal year, and if they were involved in the company's share transactions, the information received by the company from them in this regard,

(dha) The substance of information provided regarding the personal interest of any director and his/her close relative in agreements related to the company during the past fiscal year,

(na) If the company has purchased its own shares, the reason for purchasing its own shares, the number and face value of such shares, and the amount paid by the company for purchasing such shares,

(ta) Whether there is an internal control system or not, and if so, detailed details thereof,

(tha) Details of total administrative expenses for the past fiscal year,

(da) The list of members of the audit committee, remuneration, allowances and facilities received by them, details of the work performed by that committee, and any suggestions made by that committee,

(dha) If any amount is owed to the company by a director, managing director, chief executive officer, substantial shareholder of the company or his/her close relative, or a firm, company or corporate body in which he/she is involved,

(na) The amount of remuneration, allowances and facilities paid to directors, managing director, chief executive officer and officers,

(pa) The amount of dividends remaining unclaimed by shareholders,

(pha) Details of purchase or sale of assets pursuant to Section 141,

(ba) Details of transactions between related companies pursuant to Section 175,

(bha) Any other matters required to be disclosed in the report of the board of directors under this Act or prevailing law,

(ma) Other necessary matters.

(5) When preparing annual financial statements pursuant to sub-section (1), for the year of incorporation of the company, they shall include the period from the date of incorporation to the end of that fiscal year, and for subsequent years, they shall include the accounts of the previous fiscal year.

(6) The annual financial statements prepared under this section shall be kept open for inspection by any shareholder who wishes to inspect them.

(7) The annual financial statements and the directors' report prepared under this section shall be approved by the board of directors and signed by the chairperson of the board of directors and at least one director.

(8) The company shall keep the accounts and annual financial statements prepared under this Chapter safe for at least five years from the date of the end of the relevant fiscal year.

(9) Officers who prepare false annual financial statements, board of directors' reports, and other details and reports required to be prepared under this Act, and directors who approve them, shall be punished under this Act.