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Cash flow statements and statement of changes in equity

21 November 2013

Dear Members,

Section 2(40) of the Companies Act, 2013 is notified. (Financial statements include Cash flow statements and statement of changes in equity) However excemptions to small companies are not notified.
1) Whether it is mandatory to file cash flow statement and statement of changes in equity eventhough it is not applicable as per Accounting Standards.

2) Is Auditor required to mention in is his audit report about cash flows statement and statement of changes in equity as they are 'part of financial statements'?

Regards, CS Yogish Bhat

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3 Replies

Vikas Prajapati (CA) (249 Points)
Replied 21 November 2013

Originally posted by : CS Yogish Bhat
	Dear Members, Section 2(40) of the Companies Act, 2013 is notified. (Financial statements include Cash flow statements and statement of changes in equity) However excemptions to small companies are not notified. 1) Whether it is mandatory to file cash flow statement and statement of changes in equity eventhough it is not applicable as per Accounting Standards. 2) Is Auditor required to mention in is his audit report about cash flows statement and statement of changes in equity as they are 'part of financial statements'? Regards, CS Yogish Bhat

As per my knowledge Accounting Standard issued by ICAI is notified by MCA and Hence ..

Hence

1) It is not mendatory to file cash flow statements.

2) Auditor not required to show seperatly, Audit Report Says

"We have audited the accompanying financial statements of ABC Private Limited (“the Company”), which comprise the Balance Sheet as at March 31, 2013 and the Statement of Profit and Loss for the year then ended,and Cash Flow Statements and a summary of significant accounting policies and other explanatory information."

However Auditor can remove "Cash Flow Statement" word from report.If CFS is not applicable to the company.