BOd report date

This query is : Resolved

Guest

Guest (Querist)

24 May 2011 As BOD report is not annexed to balance and p & l a/c (sec:222)hence not required to put in AGM so what should be BOD report date ?
In practice Audit report and BOD report is taken same
can anyone explain me the whole process

Guest

Guest (Querist)

24 May 2011 Is the sequence correct first b/s and p&l date then BOD report date then Auditor's report date

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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18 July 2024 In the context of corporate governance and reporting requirements under the Companies Act, I'll clarify the sequence and requirements regarding the Board of Directors' (BOD) report, financial statements, and auditor's report:

1. **Financial Statements (Balance Sheet and Profit & Loss Account):**
- The financial statements (Balance Sheet and Profit & Loss Account) are prepared based on the financial year-end of the company. This date is crucial as it marks the end of the reporting period for which financial performance and position are being disclosed.

2. **Board of Directors' Report:**
- The Board of Directors' Report provides an overview of the company's operations, financial performance, future prospects, and other relevant information. As per Section 134 of the Companies Act, 2013, the Board's Report is required to be prepared by the Board of Directors and annexed to the financial statements.

3. **Auditor's Report:**
- The Auditor's Report is prepared by the company's auditors based on their examination of the financial statements and other relevant records. It includes their opinion on whether the financial statements give a true and fair view of the company's financial position and comply with applicable accounting standards.

### Sequence in Reporting:

- **Financial Statements Date:** This is the date as of which the financial statements are prepared, typically the year-end date (e.g., 31st March).

- **Board of Directors' Report Date:** The Board of Directors' Report should cover the activities and performance of the company during the financial year covered by the financial statements. It is usually dated around the approval date of the financial statements by the Board.

- **Auditor's Report Date:** The Auditor's Report is dated after the auditors have completed their examination of the financial statements and other necessary audit procedures. It typically follows the completion of the audit process and the approval of the financial statements by the Board.

### Key Points:

- **Annexure of Board's Report:** According to Section 134 of the Companies Act, 2013, the Board's Report must be annexed to the financial statements when they are laid before the Annual General Meeting (AGM). However, if the Board's Report is not annexed, it does not need to be presented at the AGM.

- **Practice of Combined Reports:** In some cases, especially in smaller companies or by choice of management, the Board's Report and Auditor's Report may be combined into a single document. This is permissible as long as all required disclosures are made and the reports are clearly distinguished.

### Conclusion:

- The sequence typically starts with the preparation of the financial statements based on the financial year-end.
- The Board of Directors' Report covers the activities and performance for that financial year and is dated around the approval of the financial statements.
- The Auditor's Report follows the completion of the audit and provides the auditor's opinion on the financial statements.

It's important to adhere to the timelines and requirements specified under the Companies Act and other applicable regulations regarding the preparation, approval, and presentation of these reports to ensure compliance and transparency in corporate reporting. If in doubt, consulting with a company secretary or legal advisor can provide further clarity based on the specific circumstances of the company.

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