Financial Statement Preparation and Filing
Financial statements for Indian companies: balance sheet, P&L, cash flow, schedules, and disclosure requirements under Schedule III.
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Quick Answer
Indian companies must prepare financial statements annually under section 129 of the Companies Act, 2013, comprising the balance sheet, statement of profit and loss, cash flow statement, statement of changes in equity, and explanatory notes. The format follows Schedule III (Division I for non-banking, non-insurance companies).
Mandatory components
- Balance Sheet — assets, liabilities, and equity at year-end.
- Statement of Profit and Loss — revenue, expenses, and net profit.
- Cash Flow Statement — operating, investing, financing activities.
- Notes to Accounts — accounting policies and disclosures.
- Comparative figures for the prior year.
When IND AS applies
Companies meeting any of these thresholds must follow IND AS:
- Listed entities.
- Unlisted companies with net worth ≥ ₹250 crore (any year).
- Holding / subsidiary / joint venture / associate of an IND AS filer.
Common pitfalls
- Misclassifying deposits vs borrowings.
- Omitting related-party transaction disclosures.
- Forgetting to round figures as per Schedule III requirements.
Next steps
See our annual compliance checklist, or talk to our team for statutory audit + financial statements preparation.
When this guide applies
Use this guide when you need a practical, plain-English explanation of the topic for an Indian business or taxpayer. We assume you already know the basics of Indian taxation and compliance — this guide focuses on the specific situations, deadlines, and pitfalls that matter in real filings.
Step-by-step process
- Confirm the trigger event — turnover threshold, registration requirement, or compliance deadline that brings this topic into scope for your business.
- Gather the documents you need (PAN, Aadhaar, GSTIN, bank statements, or the specific records called out in the linked forms).
- File or register through the official portal (income tax e-filing, MCA, GST, FSSAI, or the relevant regulator). Keep acknowledgement numbers.
- Pay any fee or tax due. Note the challan reference for your records.
- Track the SLA — most approvals arrive in 3-30 working days; escalate through the regulator’s grievance portal if delayed.
Common pitfalls
- Filing after the due date without paying the late fee — penalty compounds per month under Section 234F for ITR, per return period for GST.
- Using the wrong ITR form or business code — leads to defective return notice under Section 139(9) and a fresh round of filing.
- Ignoring state-specific requirements (professional tax, shop & establishment, state GST registration) when operating across multiple states.
When to escalate
Talk to an expert if the situation involves cross-border transactions, notice from the department, or disputed turnover. Self-filing works for the routine cases but escalates quickly once a notice arrives.
Next steps
For a personalised check, use our eligibility wizards and free code search tools. To file end-to-end, see the linked service pages on FinTax24.
Quick Answer
Indian companies must prepare financial statements annually under section 129 of the Companies Act, 2013, comprising the balance sheet, statement of profit and loss, cash flow statement, statement of changes in equity, and explanatory notes. The format follows Schedule III (Division I for non-banking, non-insurance companies).
Mandatory components
- Balance Sheet — assets, liabilities, and equity at year-end.
- Statement of Profit and Loss — revenue, expenses, and net profit.
- Cash Flow Statement — operating, investing, financing activities.
- Notes to Accounts — accounting policies and disclosures.
- Comparative figures for the prior year.
When IND AS applies
Companies meeting any of these thresholds must follow IND AS:
- Listed entities.
- Unlisted companies with net worth ≥ ₹250 crore (any year).
- Holding / subsidiary / joint venture / associate of an IND AS filer.
Common pitfalls
- Misclassifying deposits vs borrowings.
- Omitting related-party transaction disclosures.
- Forgetting to round figures as per Schedule III requirements.
Next steps
See our annual compliance checklist, or talk to our team for statutory audit + financial statements preparation.
When this guide applies
Use this guide when you need a practical, plain-English explanation of the topic for an Indian business or taxpayer. We assume you already know the basics of Indian taxation and compliance — this guide focuses on the specific situations, deadlines, and pitfalls that matter in real filings.
Step-by-step process
- Confirm the trigger event — turnover threshold, registration requirement, or compliance deadline that brings this topic into scope for your business.
- Gather the documents you need (PAN, Aadhaar, GSTIN, bank statements, or the specific records called out in the linked forms).
- File or register through the official portal (income tax e-filing, MCA, GST, FSSAI, or the relevant regulator). Keep acknowledgement numbers.
- Pay any fee or tax due. Note the challan reference for your records.
- Track the SLA — most approvals arrive in 3-30 working days; escalate through the regulator’s grievance portal if delayed.
Common pitfalls
- Filing after the due date without paying the late fee — penalty compounds per month under Section 234F for ITR, per return period for GST.
- Using the wrong ITR form or business code — leads to defective return notice under Section 139(9) and a fresh round of filing.
- Ignoring state-specific requirements (professional tax, shop & establishment, state GST registration) when operating across multiple states.
When to escalate
Talk to an expert if the situation involves cross-border transactions, notice from the department, or disputed turnover. Self-filing works for the routine cases but escalates quickly once a notice arrives.
Next steps
For a personalised check, use our eligibility wizards and free code search tools. To file end-to-end, see the linked service pages on FinTax24.
Sources & authority: incometax.gov.in, gst.gov.in, mca.gov.in, cbic.gov.in.
Last reviewed by: FinTax24 Compliance Desk · Reviewed on: