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Draft Format of Director’s Report for Small Private Limited Company
To the Members of [Your Company Name],
In compliance with Section 134 of the Companies Act, 2013, the Directors are pleased to present the Annual Report along with the Audited Financial Statements for the financial year ended 31st March [Year].
1. Financial Summary or Highlights/Performance of the Company
The financial performance of the Company for the year end is summarized below:
| Particulars | Current Year (₹) | Previous Year (₹) |
|---|---|---|
| Total Revenue | ||
| Profit Before Tax | ||
| Provision for Tax | ||
| Profit After Tax | ||
| Dividend |
2. State of the Company’s Affairs
Discuss the state of affairs of the company in detail. Mention any significant changes in the business operations during the year.
3. Change in the Nature of Business, if any
In case there has been any change in the nature of business, it should be reported in this section.
4. Dividend
If the board proposes to distribute a dividend, provide details about the rate of dividend and the total amount to be distributed.
5. Reserves
State the total amount proposed to be carried to reserves.
6. Brief description of the Company’s working during the year/Status of Affairs
Present an overview of the business and operations during the year, including any expansion, diversification, or contraction of activities.
7. Directors
- A declaration by the Independent Directors under sub-section (6) of Section 149 of the Act.
- In case of the appointment of a director or resignation of a director, the details should be mentioned.
8. Board Meetings
A detailed account of the number of Board Meetings conducted during the year.
9. Directors’ Responsibility Statement
A statement by the Directors’ on their responsibility regarding the preparation of annual statements, applying appropriate accounting standards, and maintaining adequate accounting records.
10. Details in respect of frauds reported by auditors under sub-section (12) of section 143 other than those which are reportable to the Central Government.
11. Conservation of energy, technology absorption and foreign exchange earnings and outgo
Details according to the provisions of Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of The Companies (Accounts) Rules, 2014.
12. Subsidiaries, Joint Ventures and Associate Companies
Provide a report on the performance and financial position of each subsidiary, associate, and joint venture included in the consolidated financial statement.
13. Deposits
Detail the amount, if any, which it has accepted exceeding the prescribed limit.
14. Particulars of Loans, Guarantees or Investments
Details as per the provisions of section 186 of the Companies Act, 2013.
15. Corporate Social Responsibility (CSR)
If applicable, a brief outline of the company’s CSR policy, including an overview of projects or programs to be undertaken pursuant to the CSR Policy.
16. Risk Management Policy
Elaborate on steps taken to mitigate the risks encountered by the business.
17. Internal Control Systems
Discussion of the effectiveness of the internal control systems and their adequacy.
18. Material changes and commitments, if any, affecting the financial position of the company
19. Details relating to Depository Participants
Mention any changes in the arrangements with the depository participants, if applicable.
This report intends to present a transparent view of the company’s business operations to our stakeholders. Your Directors acknowledge with gratitude the encouragement and support extended by our valued shareholders, bankers, suppliers, and customers.
The Directors also take this opportunity to express their appreciation for the hard work and dedication shown by the employees of the company and look forward to their continued contribution in the years ahead.
For and on behalf of the Board of Directors,
[Director’s Name]
[Director’s Signature]
[Date] & [Place]
Note: The details provided above are for illustrative purposes only and should be tailored to reflect the actual data and affairs of the specific company for which the report is being prepared. Furthermore, it is important to stay updated with legal requirements as they are subject to change.
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