Balance Sheet Requirement
Yes, creating a balance sheet requirement is obligatory for textile and apparel traders and establishments in India. Under the Companies Act of 2013, which governs Indian businesses, all companies are require to formulate a balance sheet as an integral part of their annual financial records.
This mandate encompasses both publicly traded and privately held companies, as well as small and medium-sized enterprises (SMEs).
The balance sheet requirement functions as a financial statement that condenses a company’s assets, liabilities, and equity at a specific moment. It offers a snapshot of the company’s financial stance and can be utilize to evaluate its fiscal well-being.
To visit: https://www.incometax.gov.in
Precise requisites for the balance sheet are stipulate in the Companies Act. In broad terms, the balance sheet should encompass the subsequent details:
- The company’s assets, categorize into current assets and non-current assets.
- The company’s liabilities, classify as current liabilities and non-current liabilities.
- The company’s equity.
- The balance sheet’s preparation must align with the Generally Accepted Accounting Principles (GAAP) in India. GAAP constitutes a set of accounting norms utilized to ensure that financial statements are prepared cohesively and transparently.
- The final balance sheet should be endorsed by the company’s directors and furnished to the Registrar of Companies within six months following the closure of the financial year.
- Neglecting the creation of a balance sheet contravenes the Companies Act, potentially leading to penalties imposed upon the company and its directors.
For further details access our website: https://vibrantfinserv.com
