Companies Act 2013 - Financial Statements to include Cash Flow Statement and Statement for Changes in Equity

The financial statements would include Cash Flow Statements and A Statement of Changes in Equity.

Sec 2(40) of the Companies Act defines Financial Statements as follows:

“financial statement” in relation to a company, includes—

(i) a Balance Sheet as at the end of the financial year;

(ii) a Profit and Loss Account, (Income and Expenditure Account for not-for-profit companies) for the financial year;

(iii) Cash Flow Statement for the financial year;

(iv) a Statement of Changes in Equity, if applicable; and

(v) any explanatory note annexed to, or forming part of, any document referred to in sub-clause (i) to sub-clause (iv):

One Person Company, Small Company, Dormant Company are NOT required to prepaare Cash Flow Statement.

Sec 2(85) defines Small Companies as:

‘‘small company’’ means a company, other than a public company,—

(i) Paid-Up Share Capital does not exceed Rs 50 Lakhs  [or such higher amount as may be prescribed which shall not be more than Rs 5 Crores]; or

(ii) Turnover of which as per its last profit and loss account does not exceed Rs 2 crore [or such higher amount as may be prescribed which shall not be more than Rs 20 crores]:

Provided that nothing in this clause shall apply to—

(A) a holding company or a subsidiary company;

(B) a company registered under section 8; or

(C) a company or body corporate governed by any special Act;

Dormant Company 
A company which is formed and registered under the Act, for a future project or to hold an asset or intellectual property and has no significant accounting transaction, such a company may make an application to the Registrar for obtaining the status of a dormant company [Section 455(1)].

A dormant company may become an active company by submitting an application to the Registrar accompanied by such documents as may be prescribed [Section 455(5)].