MANAGEMENT

Detailed explanation-1: -It must reflect the true and clear statements of the state of affairs of the company or the group of companies, and also explain the transactions. The books must be kept on the accurate basis and according to the double entry system of accounting.

Detailed explanation-2: -Requirements of Financial Statement The FS shall be laid in the AGM within six months form the end of the financial year. The holding company shall in addition, prepare a Consolidated Financial Statement of the Company along with its all subsidiaries, associates & joint ventures and lay before the AGM.

Detailed explanation-3: -Financial statements need to reflect certain basic features: fair presentation, going concern, accrual basis, materiality and aggregation, and no offsetting. Financial statements must be prepared at least annually, must include comparative information from the previous period, and must be consistent.

Detailed explanation-4: -Key Takeaways. Financial statements must be prepared at the end of the company’s tax year, but some companies update them as frequently as each month. A financial statement is made up of four main documents: the income statement, statement of retained earnings, balance sheet, and statement of cash flows.