Quick answer
What is financial statement preparation?
Financial statement preparation is drafting the year-end balance sheet, profit and loss statement, cash flow statement and explanatory notes from a closed trial balance. Companies must follow Schedule III of the Companies Act 2013. The draft is approved by the board, audited by a practising chartered accountant, then filed with the ROC in AOC-4.
- Companies follow Schedule III (Division I, II or III)
- Small companies, OPCs and dormant companies may skip the cash flow
- Small company limits: ₹10 crore capital, ₹100 crore turnover
- AOC-4 is due within 30 days of the AGM
- LLPs file Form 8 by 30 October
What is financial statement preparation and who needs it?
Every company and LLP must prepare annual financial statements by law, and most partnership firms and proprietors need them for the income tax return, a bank loan or a tender. Preparation is the step after bookkeeping and before the audit: closing entries, classification and disclosures.
Who typically comes to us:
- Private limited companies and OPCs that need Schedule III accounts for the statutory audit and AOC-4.
- LLPs preparing the statement of account and solvency for Form 8.
- Partnership firms and proprietors whose bank wants audited or CA-prepared accounts for a cash credit or term loan.
- Businesses with a backlog, where books exist but no year-end set has been drawn up for one or more years.
If your books are not yet current, start with our accounting and bookkeeping services; year-end work goes much faster on reconciled ledgers.
What does a full set of financial statements include?
Under section 2(40) of the Companies Act 2013, financial statements mean the balance sheet, the statement of profit and loss, the cash flow statement, a statement of changes in equity where applicable, and explanatory notes. One person companies, small companies and dormant companies may leave out the cash flow statement.
The small company limits changed on 1 December 2025. MCA raised them to paid-up capital up to ₹10 crore and turnover up to ₹100 crore, up from ₹4 crore and ₹40 crore, as reported by Taxmann. Public companies, holding or subsidiary companies and Section 8 companies cannot be small companies whatever their size.
| Component | Who must include it |
|---|---|
| Balance sheet | Every company, LLP and firm preparing accounts |
| Statement of profit and loss | Every company, LLP and firm preparing accounts |
| Cash flow statement | Companies, except OPCs, small companies and dormant companies |
| Statement of changes in equity | Companies on Ind AS (Division II) |
| Notes and accounting policies | Every company; ratios and ageing schedules under Schedule III |
| Statement of account and solvency | LLPs, filed in Form 8 |
Sources: Companies Act 2013 on India Code; small company limits per G.S.R. 880(E) dated 1 December 2025 as reported by Taxmann. Checked 10 November 2026.
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Which Schedule III division applies, and what must be disclosed?
Most Delhi private companies use Division I of Schedule III, meant for companies that follow the Companies (Accounting Standards) Rules rather than Ind AS. Division II applies to Ind AS companies and Division III to NBFCs on Ind AS. The division decides headings, sub-headings and note formats.
Since the MCA amendment notified on 24 March 2021 and effective from 1 April 2021, Schedule III also asks for several detailed disclosures that small companies often miss. The MCA notification lists them in full.
| Disclosure | What it means in practice |
|---|---|
| Shareholding of promoters | Every promoter's shares at year end and the percentage change during the year |
| Trade receivables ageing | Amounts outstanding by age bucket, with disputed dues shown separately |
| Trade payables ageing | Supplier dues by age, MSME dues separate, disputed amounts separate |
| Capital work-in-progress and intangibles under development | Ageing and completion schedule for projects |
| Financial ratios | Eleven ratios such as current ratio and debt-equity, with reasons for any change above 25% |
| Title deeds, benami property, wilful defaulter status, crypto holdings | Yes/no disclosures with details where applicable |
Source: MCA, Schedule III amendment, 24 March 2021; ICAI Guidance Note on Division I. Checked 10 November 2026.
What do we need from you for year-end accounts?
Year-end preparation needs a closed set of books plus the evidence behind the closing balances. The list below covers a typical trading or service company; manufacturers also need stock records and job-work details.
| Item | Used for |
|---|---|
| Tally or Zoho Books backup, or trial balance with ledgers | Starting point for classification |
| Bank statements and loan statements to 31 March | Bank and borrowing balances |
| Closing stock valuation signed by management | Inventories and cost of goods sold |
| Fixed asset purchases and sales with invoices | Depreciation schedule and asset note |
| Debtor and creditor lists with invoice dates | Ageing schedules under Schedule III |
| GST returns, Form 26AS and AIS | Tax balances and income cross-checks |
| Share capital, director and related-party details | Equity note and related-party disclosures |
| Last year's signed financial statements | Comparative figures |
Our standard checklist, November 2026. The auditor may ask for more.
How financial statement preparation works: step by step
The work moves from the trial balance to a signed set in a fixed order, and each step has a review point so the auditor receives figures that already tie up.
- 1
Review the books
We check that bank, GST and TDS balances agree with statements and returns, and list gaps for you to answer.
- 2
Year-end adjustments
We post depreciation, provisions, prepaid and outstanding expenses, closing stock and income tax entries.
- 3
Map to the format
Each ledger is mapped to the right Schedule III line, or to the format your bank expects for a firm.
- 4
Draft notes and schedules
We prepare accounting policies, ageing, ratios, related-party and other notes.
- 5
Your review
You receive the draft with a short note on key movements and anything unusual.
- 6
Audit support
We answer the auditor's queries and update the draft for agreed audit adjustments.
- 7
Final set for filing
The board approves and signs; the set is ready for AOC-4 or Form 8 and the income tax return.
When are financial statements due in 2026?
For a March year end, a company holds its AGM within six months, so by 30 September, and files AOC-4 within 30 days of the AGM. For FY 2025-26, MCA General Circular 05/2026 allows AOC-4 without additional fees up to 31 December 2026, as reported by tax publishers; it did not extend the AGM date.
| Entity | Step | Due date |
|---|---|---|
| Company | Annual general meeting | Within six months of year end (30 September 2026); first AGM within nine months |
| Company | AOC-4 with financial statements | Within 30 days of the AGM |
| Company, FY 2025-26 relief | AOC-4 without additional fees | Up to 31 December 2026 (General Circular 05/2026) |
| Company, FY 2025-26 relief | MGT-7 / MGT-7A without additional fees | Up to 31 January 2027 |
| One person company | AOC-4 | Within 180 days of year end; no AGM needed |
| LLP | Form 8, statement of account and solvency | 30 October 2026 |
Sources: AOC-4 relief as reported by StudyCafe; LLP Form 8 per Tally. Confirm on the MCA portal circulars page. Checked 10 November 2026.
Is financial statement preparation the same as an audit?
No. Preparation is management's job: drafting the accounts from the books. An audit is an independent check of those accounts, carried out and signed by a practising chartered accountant who did not prepare them. Companies need both; the preparer and the auditor should be separate.
That is why we keep preparation and audit apart. If your company also needs its statutory audit or a business needs a tax audit, the audit is done by an independent practising CA, and we coordinate the handover of the draft, ledgers and schedules.
Banks reviewing a working capital limit usually want the financial statements together with projections. Our CMA data service builds those on top of the same figures.
Common mistakes in year-end financial statements
The errors we fix most often are classification mistakes rather than arithmetic ones: wrong current and non-current splits, missing ageing schedules, and director loans shown in the wrong place. They lead to audit qualifications, ROC queries or a bank asking for revised accounts.
- Using an old Schedule III template without the 2021 disclosures on promoters, ageing and ratios.
- Including a cash flow statement where none is needed, or leaving it out when the company is no longer a small company.
- Comparative figures that do not match last year's filed accounts.
- MSME supplier dues not shown separately in trade payables.
- Closing stock without a signed valuation, so the auditor cannot verify it.
- Related-party transactions with directors' relatives left undisclosed.
How CA in Delhi handles financial statement preparation
We prepare year-end accounts for Delhi businesses on a fixed quote, working from your books wherever they are kept. Moneymji lists accounting and bookkeeping and ROC compliance, and Khubchandani & Co. Chartered Accountants lists accounting and bookkeeping. For anything outside those, CA in Delhi passes the enquiry to the listed firm or partner professional that handles it and confirms scope before work starts.
- You send: the software backup or trial balance, bank statements, stock and asset details, and last year's accounts.
- You get: a draft set with notes, a query list, audit support, and the final set ready for AOC-4, Form 8 or your bank.
- Fixed quote: priced on the entity type, the number of transactions, and whether a backlog clean-up is needed, agreed before work starts.
Compare the listed firms on chartered accountant firms in Delhi. Businesses near the office can read our page for a CA in Pitampura, and anyone searching locally can start with accountant near me. Send your trial balance through the enquiry form, or call or WhatsApp +91 99114 92897.
Frequently asked questions
What is Schedule III of the Companies Act?
Schedule III prescribes the format of a company's balance sheet and statement of profit and loss, with the notes and disclosures that go with them. Division I is for companies not on Ind AS, Division II for Ind AS companies and Division III for NBFCs on Ind AS.
Does a small company need a cash flow statement?
No. Section 2(40) lets one person companies, small companies and dormant companies leave out the cash flow statement. Since 1 December 2025 a private company is small if paid-up capital is up to ₹10 crore and turnover up to ₹100 crore, unless it is a holding, subsidiary or Section 8 company.
Can the same CA prepare and audit our financial statements?
No. The statutory auditor must be independent of the people who prepare the accounts, so preparation and audit should sit with different professionals. We prepare the statements and hand them to your appointed auditor, or help you find an independent practising chartered accountant.
Do partnership firms and proprietors need financial statements?
There is no Schedule III requirement for them, but they still need a balance sheet and profit and loss account for the income tax return, a tax audit where it applies, and almost every bank loan. We prepare them in a clear format that lenders and the tax department accept.
How long does financial statement preparation take?
With reconciled books, a small company's draft set usually takes a short time once documents arrive; backlogs and missing records take longer. We give you a written timeline with the quote and plan around your AGM and AOC-4 dates, or the 30 October Form 8 date for LLPs.
Was the AOC-4 date extended for FY 2025-26?
MCA General Circular 05/2026, dated 24 October 2026, allows AOC-4 for FY 2025-26 without additional fees up to 31 December 2026, and MGT-7 up to 31 January 2027, as reported by tax publishers. The AGM deadline itself was not extended. Check the MCA circulars page before relying on it.
What if our accounts for earlier years were never prepared?
We start with the oldest open year, rebuild the books from bank statements and GST returns, and prepare each year's statements in order so opening balances carry forward correctly. Pending ROC forms can then be filed through our ROC compliance service.
Can you prepare financial statements for a bank loan?
Yes. Banks usually want the last two or three years' statements, the current year's provisional figures and projections. We prepare the statements and, if needed, a project report for a bank loan built on the same numbers, so the lender sees one consistent story.