Preparation of Board Report
Need a Board Report prepared? We help draft clear, compliant reports, covering company performance and other key matters to meet regulatory standards.
A board report is an essential document that gives the shareholders and stakeholders an in-depth overview of a company's financial health and its operational performance. Under section 134 of the Companies Act 2013, it is mandated that the board report to building transparency and also maintain compliance so that the company remains accountable to its shareholders and the regulatory bodies.
At Benchmark we help you with the end-to-end preparation of the Board Report that not only meets statutory requirements but also delivers strategic insights that are essential for an informed decision-making process. Our team of experienced professionals brings in their expertise in crafting every single report adhering to relevant legal frameworks such as the Companies Act, 2013, SEBI regulations and other industry-specific compliance mandates.
We place a strong emphasis on clarity, accuracy, and compliance. In addition to a thorough examination of the company's balance sheets, profit and loss accounts, and cash flow statements, each report we create offers in-depth information on corporate governance disclosures, management discussions and analysis (MD&A), and other regulatory reporting requirements. Our method guarantees that all required disclosures, including those on related party transactions (RPTs), director's responsibility statements, and auditor qualifications, are made in a way that complies with current laws and is transparent.
Our Services
At Benchmark, we offer a range of services designed to assist businesses in preparing accurate, compliant, and insightful Board Reports. Our expertise ensures that each report meets all statutory requirements while providing valuable strategic insights to guide decision-making.
| Service | Description |
|---|---|
Data Collection & Verification |
We gather and verify financial and non-financial data from all relevant departments, including Finance, Operations, and Compliance. Information is cross-checked from multiple sources to ensure its accuracy and reliability. |
Preparation of Financial Statements |
We prepare comprehensive financial statements such as Balance Sheets, Profit & Loss Accounts, and Cash Flow Statements in accordance with statutory guidelines. These statements provide stakeholders with a transparent view of the company's financial performance. |
Management Discussions & Analysis (MD&A) |
Our team offers detailed MD&A sections that provide in-depth insights into the company's financial health, operational efficiency, risk management strategies, and future growth prospects. |
Compliance with Regulatory Requirements |
We ensure full compliance with Section 134 of the Companies Act, 2013, SEBI (LODR) Regulations, and other relevant laws. This includes preparing mandatory disclosures such as the Director's Responsibility Statement and Corporate Governance Reports. |
Auditor's Report Integration |
We collaborate with auditors to incorporate their findings and any qualifications into the Board Report. This ensures transparency and accountability in the financial data presented to shareholders. |
Filing & Distribution |
Once the report is finalised, we manage the filing with the Registrar of Companies (RoC) and distribute the report to board members, shareholders, and other stakeholders such as SEBI, if applicable. |
Why Choose Benchmark
At Benchmark, we recognise that a board report is a strategic document that represents the operational and financial well-being of your company, and it is more than just a legal necessity. Our team of professionals makes sure that every report offers useful insights into the operation of the business in addition to complying with Section 134 of the Companies Act, 2013. Our meticulous approach to corporate governance disclosures, financial statement production, and management discussions and analysis (MD&A) helps your company be accountable and transparent while fulfilling all legal requirements.
We take great satisfaction in providing board reports that are accurate, timely, properly designed, simple to understand, and compliant with legal requirements like the SEBI (LODR) Regulations. We assist you in effectively communicating with stakeholders and shareholders by integrating transparent financial measures, the credentials of the auditor, and insights into important strategic projects.
Documents Required for Board Report Preparation
To prepare a Board Report, it is essential to collect and organise all relevant documents. These documents ensure the accuracy of financial statements, compliance with regulations, and the inclusion of key disclosures.
| Document | Description |
|---|---|
| Balance Sheet | Provides a snapshot of the company's financial position, including assets, liabilities, and shareholders' equity at a specific point in time, which is crucial for understanding the company's financial stability. |
| Profit & Loss | Details the company's revenues, costs, and expenses during a specific period. It helps stakeholders assess the company's profitability and overall financial performance. |
| Cash flow statement | Outlines the company's cash inflows and outflows from operations, investing, and financing activities, giving stakeholders insight into the company's liquidity and cash management practices. |
| Auditor's report | A formal opinion issued by the company's auditors, verifying the accuracy of the financial statements. Any qualifications or concerns highlighted in this report are crucial for stakeholders to understand potential risks. |
| Directors Responsibility Statement | A statutory declaration that confirms the directors have complied with all applicable laws and that the financial statements present a true and fair view of the company's affairs. |
| Related Party Transaction (RPT) Disclosures | Discloses transactions between the company and its related parties (such as subsidiaries or associates), ensuring transparency and avoiding conflicts of interest. |
| Corporate Governance Reports | Outlines the company's compliance with corporate governance norms, including the structure and functioning of the board, internal controls, and risk management processes, as mandated by SEBI (LODR) Regulations. |
| Details of Material Changes and Commitments | Reports significant changes or commitments that could affect the company's financial position since the last financial statement, ensuring transparency for stakeholders. |
Step-by-Step Process for Board Report Preparation
A systematic procedure is followed while preparing a board report to guarantee that all relevant financial and strategic data is included and that legal obligations are met. Below is a thorough explanation of every step:
Step 1: Data Collection & Verification
We begin by gathering financial and non-financial data from all relevant departments, including Finance, Operations, and Compliance. Each piece of information is cross-checked to ensure its accuracy and relevance.
Step 2: Preparation of Financial Statements
Our team prepares detailed financial statements following statutory requirements. These include Balance Sheets, Profit & Loss Accounts, and Cash Flow Statements.
Step 3: Management Discussions & Analysis (MD&A)
We prepare a comprehensive MD&A section, which provides stakeholders with detailed insights into the company's financial performance, market conditions, and strategic risks.
Step 4: Compliance Review & Legal Disclosures
This step involves ensuring that the report adheres to all mandatory requirements outlined in Section 134 of the Companies Act, 2013 and SEBI (LODR) Regulations.
Step 5: Auditor's Report & Qualifications
We work closely with the company's auditors to incorporate the Auditor's Report, ensuring that all financial statements are verified for accuracy.
Step 6: Drafting & Review with Management
Our experts draft the report, ensuring clarity and precision in presenting both financial and strategic information. The draft is then reviewed by senior management and board members to confirm that it meets all internal and external requirements.
Step 7: Visual Presentation & Formatting
To make the report easy to understand, we integrate charts, graphs, and tables into the financial sections.
Step 8: Finalisation, Filing & Distribution
Once the Board Report is finalised, it is filed with the Registrar of Companies (RoC) and submitted to other relevant regulatory bodies, such as SEBI, if applicable.
Non-Compliance Issues
Failure to prepare and file a Board Report by statutory requirements can lead to severe legal and financial consequences for the company. Non-compliance with the regulations outlined in the Companies Act, 2013 and SEBI (LODR) Regulations can negatively impact the company's reputation and financial standing. Below are the key non-compliance issues:
- Penalties under Section 134 of the Companies Act, 2013
- Legal action from regulatory authorities such as SEBI and the Registrar of Companies (RoC)
- Fines for inaccurate or incomplete financial disclosures
- Disqualification of directors due to non-compliance
- Loss of shareholder and investor confidence
- Increased scrutiny from auditors and regulatory bodies
Conclusion
In addition to being required by law, creating a board report provides a chance to convey your company's financial stability, strategic orientation, and dedication to openness. Benchmark's proficiency in creating informative and legally compliant Board Reports assists your company in fulfilling all legal requirements while giving stakeholders the data they require to make wise decisions.
Get in Touch
Don't risk penalties or damage to your reputation by overlooking the importance of a well-prepared Board Report. Let our team of professionals guide you through the process with precision and efficiency.
Contact us now to discuss your reporting needs and let us handle the details.
FAQs
What is the timeline for preparing a Board Report?
The timeline varies depending on the complexity of the company's operations and the required data availability. Normally, it takes 3-4 weeks to prepare a detailed Board Report from data collection to finalisation.
Can a Board Report be amended after it has been filed?
Once a Board Report is filed with the Registrar of Companies (RoC), amendments are generally not allowed. If errors are found, a revised version may need to be filed with appropriate justifications, depending on regulatory approval.
What happens if there's a delay in filing the Board Report?
Delays in filing the Board Report can result in penalties, including fines and legal action under the Companies Act, 2013. As a result of increased regulatory scrutiny and reputational damage, companies may also suffer.
What are the common mistakes companies make when preparing a Board Report?
Common mistakes include incomplete financial disclosures, failure to include mandatory legal statements such as the Director's Responsibility Statement, and errors in compliance with SEBI (LODR) Regulations.
Do private limited companies need to prepare a Board Report?
Yes, even private limited companies are required to prepare and file Board Reports in compliance with the Companies Act, 2013.