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Companies Act, 2013Understanding a Balance Sheet in view of the Companies Act, 2013

June 5, 2019by GLC & Partners

Financial Statement Section 2(40) of the Companies Act, 2013 defines the term financial statement to include: Balance Sheet as at the end of the financial year; Profit and loss account for the financial year; Cash flow statement for the financial year; Statement of change in equity, if applicable, and Any explanatory note forming part of...

Companies Act, 2013Reserves vs. Surplus – Analysis under the Companies Act, 2013

May 30, 2019by GLC & Partners1

What are Free Reserves? Reserve means a provision made for a specific purpose. There are lots of unknown expenditures which can occur in current year or in future. To meet such type of expenses the business organisation has to make the reserves out of the profits of the company for the specified expenses/purposes. By maintaining...