How to Prepare Financial Statements for Pvt Ltd ROC Filing?

[Ishita Ramani]

There is a complete and defined process of how ROC filing is done for Pvt Ltd companies, and after the filings are done, only then is the financial statement prepared to show how many filings have been initiated in the entire year or as per the due dates.

This article shows how to prepare the Financial Statements for Private Limited Companies.

Key Financial Statements Required for ROC Filing

These documents help show the financial condition and performance of the company during the financial year.

1. Balance Sheet

• This shows what the company owns (assets) and what it owes (liabilities) on a specific date, usually March 31st. It gives a snapshot of the company’s financial position.

2. Profit & Loss Statement (P&L)

• Also called the Income Statement, this report shows how much profit or loss the company made during the financial year. It includes income, expenses, and net profit or loss.

3. Cash Flow Statement

• This shows the flow of cash in and out of the company. It helps understand how the company is managing its cash for operations, investments, and financing.

4. Notes to Accounts

• These are extra details that support the numbers in the financial statements. They explain accounting methods, outstanding payments, or any special items.

5. Auditor’s Report

• This is a report from a Chartered Accountant after checking the company’s accounts. It confirms whether the statements are accurate and follow the law.

Step-by-Step Process to Prepare Financial Statements

1. Maintain Proper Books of Accounts

• Record all income, expenses, assets, and liabilities accurately.

2. Modify Bank Statements

• Match your bank records with the books to ensure accuracy.

3. Record Year-End Adjustments

• Include depreciation, outstanding expenses, prepaid items, etc.

4. Prepare Trial Balance

• List all account balances to verify that debits equal credits.

5. Draft Financial Statements

• Create the Balance Sheet, Profit & Loss Account, and Cash Flow Statement in the required format.

6. Add Notes to Accounts

• Include detailed explanations for financial figures.

7. Get the Audit Done

• Have a Chartered Accountant audit and verify your financials.

8. Final Review & Approval

• Get statements approved by directors before filing with the ROC.

Common Mistakes to Avoid while preparing the Financial Statements

1. Not Maintaining Proper Records

If daily income and expenses are not recorded properly, it becomes hard to prepare accurate statements.

2. Missing Year-End Adjustments

Many forget to add entries like depreciation, outstanding bills, or advance payments, which affect the real profit or loss.

3. Errors in Calculations

Simple mistakes in math or wrong totals can lead to wrong financial results and ROC filing issues.

4. Ignoring Changes

If your bank statements and books of accounts don’t match, it creates confusion and delays.

5. Not Preparing Notes to Accounts

These notes explain financial details clearly. Skipping them can make your report incomplete.

Conclusion

Preparing financial statements for Pvt. Ltd ROC filing is an important responsibility for every company. It helps show the company’s true financial position and ensures legal compliance. By keeping proper records, following the correct format, and getting your statements audited on time, you can easily complete the ROC filing process without errors or delays.