Financial Statements Preparation

Overview

Financial statements are the formal year-end picture of a business: the balance sheet, the statement of profit and loss, the cash flow statement where required, the statement of changes in equity where applicable, and the notes and schedules that explain the numbers. For a company they are adopted by the board, audited, presented to shareholders at the AGM and filed with the Registrar. For other entities they support the tax return, bank and tax audit.

Zenith prepares the statements from your books after a year-end close, in the format that applies to your entity.

Who needs it

• Private limited companies and OPCs, which must prepare and file financial statements every year even if turnover is nil.
• LLPs, which prepare a statement of accounts and solvency for the annual filing.
• Partnership firms and proprietors who need statements for a tax audit, a bank loan or a visa or tender.
• Startups preparing for investor due diligence.
• Businesses whose bookkeeper maintains transaction books but does not draft statements.

What Zenith does

After a scoping conversation, Zenith confirms the period, framework and deliverables in a tailored quotation and assigns a relationship manager.

• Reviews the trial balance, closes open items and proposes year-end adjustments: depreciation, accruals, prepayments, provisions and stock valuation.
• Prepares the balance sheet and statement of profit and loss in the format applicable to your entity, and a cash flow statement where it is required.
• Drafts notes, accounting policies and supporting schedules: fixed assets, receivables and payables ageing, loans, related parties and tax.
• Compares with the previous year and explains major movements.
• Shares drafts for your review, and makes changes after management comments.
• Passes the statements to the statutory auditor, where an audit applies, and answers queries.
• Prepares the pack needed for the next steps: board approval, AGM, AOC-4 and the tax return.

Audit and attestation, where required, are done only by an independent, appropriately authorised professional.

Eligibility and key rules

• A company's financial statements must give a true and fair view and follow Schedule III to the Companies Act, 2013. Companies follow either the Accounting Standards or, if they are required or choose to, Ind AS; the framework depends on the company's size and listing.
• A cash flow statement is not required from every company. Certain companies such as OPCs and small companies are exempt, and the thresholds change, so Zenith confirms them for your case.
• Financial statements must be signed by the authorised directors, the CFO or company secretary where there is one, and the auditor's report is attached.
• Companies that fall in the XBRL categories (listed companies, those with paid-up capital of Rs 5 crore or more, or turnover of Rs 100 crore or more) must file in XBRL format.
• Non-company entities follow the Accounting Standards applicable to them, as prescribed for them, with relief for small entities.

Documents required

• Closing trial balance and ledgers for the year, or access to the books.
• Bank statements and bank reconciliation as at the year end, and loan statements.
• Fixed asset register, with additions and disposals.
• Stock details with the valuation method, where applicable.
• Debtor, creditor and advance balances, with confirmations if available.
• Previous year's financial statements and auditor's report.
• Payroll, TDS and GST summaries, and any pending notices.
• For companies: shareholding details, director details, related-party transactions and minutes of board meetings.

Process and timeline

1. Scoping and framework. Entity, period, applicable standards and audit requirement confirmed.
2. Books review. Trial balance tied out and open items raised.
3. Adjustments. Year-end entries agreed with you.
4. Drafting. Statements, notes and schedules prepared and shared.
5. Audit hand-off. Statements and working papers go to the auditor, where applicable.
6. Finalisation. After audit and board approval, signed statements are used for the AGM and filings.

Timelines depend on the state of the books, the audit schedule and how fast queries are answered.

Government fees, penalties and due dates

Item	Rule
AGM	Within six months of the year end (30 September for a 31 March year end).
AOC-4	Within 30 days of the AGM. For an OPC, within 180 days of the year end.
MGT-7	Within 60 days of the AGM.
AOC-4 fee	Depends on nominal share capital, from Rs 200 for up to Rs 1 lakh to Rs 600 for Rs 1 crore and above.
Late AOC-4	Additional fee that is a multiple of the normal fee, rising with delay, and a penalty of Rs 1,000 per day up to Rs 10 lakh on the company.

Amounts and dates above reflect public sources read in October 2026 and change with notifications, so Zenith confirms the current figures in your quotation.

Common mistakes

• Preparing statements from an unreconciled trial balance.
• Skipping accruals and provisions, so profit is overstated or understated.
• Missing related-party and contingent liability disclosures in the notes.
• Not matching the balances to the previous year's closing.
• Printing unsigned or machine-signed copies for AOC-4 where hand-signed copies are expected.
• Starting after the AGM date instead of before, leaving no time for audit.

FAQs