Section 134 – Director’s Report: Financial Statements

 

Section 134 – Director’s Report: Financial Statements

Key Points:

• The Director’s Report is an integral part of the financial statement. It contains details such as:

  • The company’s financial performance.

  • Changes in share capital, details of subsidiaries, and associates.

  • CSR activities under Section 135.

Compliance Steps:

• Directors must ensure that financial statements comply with the applicable accounting standards.

• Corporate Governance disclosures must be made, including details of audit committees, CSR initiatives, and key financial ratios.

• Ensure signature from the CEO and CFO for authenticity.

Example:

• Tata Consultancy Services (TCS) ensures that its Director’s Report aligns with statutory compliance, providing insights into not just financials but also CSR contributions, corporate governance practices, and risk management.