Accounts Notes: Report of Board of Directors

Thursday 23 February 2012

Report of Board of Directors

AII-12

Coroorate Laws & Secretarial Practice

(a) a copy of the balance sheet of the subsidiary;

(b) a copy of its Directors' report;

(d) a copy of its Auditor's report;

(e) a statement containing the following particulars:

(i) extent of holding company's interest in the subsidiary at the end of last

financial year; and "

(ii) the net aggregate amount of profits and losses of the subsidiary, whether

dealt with or not in the holding company's accounts;

if) a statement containing the following:

(i) details of any change in holding company's interest in the subsidiary

between the end of financial year of the subsidiary company and the end

of the financial year of holding company, and

(ii) details of any material changes since last financial year in respect of:

. the subsidiary's fixed assets,

. its investments,

. the moneys lent by it, and

. the moneys borrowed by it for every purpose other than that of

meeting current liabilities;

(g) where Directors of the holding company are unable to obtain"the necessary

information for any of the matters required to be specified by sub-section (4),

then a report in writing to that effect should be attached.

Where the financial year of the subsidiary company does not coincide with that of the holding company, the financial year of the subsidiary shall not end on a day which precedes the day on which the holding company's financial year ends by more than six months.

The documents referred to in (e), if), (g) above shall be signed by the persons by

whom the balance sheet of the holding company is required to be signed.

Q 10. "There shall be attached to every balance sheet laid before a company in general meeting a report by its Board of Directors." What are the matters which are required by law to be mentioned in the Director's Report?

As a Secretary of a public limited company, what methods would you include while preparing a report on behalf of the Board of Directors of your company, to be attached to the Balance Sheet of the company so that the report meets the disclosure require

ments as required under the Companies Act, 1956? [CA. (Final) May, 1996]

Yl.ns .

Report of Board of Directors

Section 217 provides that there shall be attached to every balance sheet laid before a company in a general meeting (in practice, the annual general meeting), a report by its Board of Directors, with respect to :

(a) the state of the company's affairs;

(b) the amounts, if any, which it proposes to carry to any reserves in such balance

sheet;