> Maintained on paper OR electronic form — both have equal legal status.
## 2. Books of Account [Sec 2(13)]
Records maintained in respect of:
1. All sums of money received and expended by a company and matters in relation to which receipts/expenditure take place;
2. All sales and purchases of goods AND services by the company;
3. The assets and liabilities of the company; and
4. Items of cost as may be prescribed under Sec 148 (cost records).
## 3. Document [Sec 2(36)]
Inclusive — includes summons, notice, requisition, order, declaration, form and register — whether issued/sent/kept under this Act or any other law, on paper or electronic form.
## 4. Financial Statement [Sec 2(40)]
In relation to a company, includes all FIVE:
#
Component
(i)
Balance Sheet at year-end
(ii)
Profit & Loss A/c (or Income & Expenditure A/c for not-for-profit)
(iii)
Cash Flow Statement
(iv)
Statement of Changes in Equity (SOCE) — if applicable
(v)
Any explanatory note annexed to / forming part of any of the above
### Exemption from Cash Flow Statement
Four categories of companies need NOT prepare a Cash Flow Statement:
1. OPC (One Person Company)
2. Small Company
3. Dormant Company
4. Private Company recognised as a Start-up (DPIIT notification)
Default rule: Period ending on 31 March every year.
For a newly incorporated company:
If incorporated on or after 1st January: First FY ends on 31 March of the FOLLOWING year.
If incorporated before 1st January: First FY ends on 31 March of the SAME year.
### Exception — Different FY for Consolidation
A company / BC which is:
a holding / subsidiary / associate company of a company incorporated outside India, AND
required to follow a different FY for consolidation of accounts outside India,
may apply to the Central Government in prescribed form to be allowed any period as its FY — whether or not that period is a year.
## 6. Branch Office [Sec 2(14)]
Any establishment described as such by the company.
Worked example
### Example 1
Q: ABC Ltd is incorporated on 5 February 2026. When does its first FY end?
A: Since incorporation is on/after 1st January, first FY ends on 31 March 2027 (FOLLOWING year).
### Example 2
Q: XYZ Ltd is incorporated on 15 December 2025. When does its first FY end?
A: Since incorporation is BEFORE 1st January, first FY ends on 31 March 2026 (SAME year, just over 3 months).
### Example 3
Q: PQR Pvt Ltd is a Start-up recognised by DPIIT. It does not prepare a Cash Flow Statement. Is its FS still valid under Sec 2(40)?
A: Yes. The proviso to Sec 2(40) exempts DPIIT-recognised private-company start-ups from preparing CFS — FS remains compliant.
⚠️ Common exam mistakes
Treating 1st January as the cut-off for current vs next-year FY end — the rule is on or after 1st January → following year. Companies incorporated before 1st January end FY same year.
Forgetting cash flow statement exemption applies only to the four specified categories (OSDS).
Including 'Statement of Changes in Equity' as mandatory for all — it is required only if applicable (e.g., under Ind-AS).
Thinking only the company itself can deviate from 31 March FY — actually, only foreign-parent groups can apply to CG; ordinary domestic companies cannot.
Bare-Act text Section 2(12), 2(13), 2(14), 2(36), 2(40), 2(41) · Companies Act, 2013 · click to expand
Sec 2(12): 'Book and paper' and 'book or paper' include books of account, deeds, vouchers, writings, documents, minutes and registers maintained on paper or in electronic form.
Sec 2(13): 'Books of account' includes records maintained in respect of — (i) all sums of money received and expended by a company; (ii) all sales and purchases of goods and services by the company; (iii) the assets and liabilities of the company; and (iv) the items of cost as may be prescribed under section 148.
Sec 2(14): 'Branch office', in relation to a company, means any establishment described as such by the company.
Sec 2(36): 'Document' includes summons, notice, requisition, order, declaration, form and register, whether issued, sent or kept in pursuance of this Act or under any other law for the time being in force or otherwise, maintained on paper or in electronic form.
Sec 2(40): 'Financial statement' in relation to a company, includes — (i) a balance sheet as at the end of the financial year; (ii) a profit and loss account, or in the case of a company carrying on any activity not for profit, an income and expenditure account for the financial year; (iii) cash flow statement for the financial year; (iv) a statement of changes in equity, if applicable; and (v) any explanatory note annexed to, or forming part of, any document referred to in sub-clause (i) to sub-clause (iv): Provided that the financial statement, with respect to OPC, small company, dormant company and private company (if such private company is a start-up) may not include the cash flow statement.
Sec 2(41): 'Financial year', in relation to any company or body corporate, means the period ending on the 31st day of March every year, and where it has been incorporated on or after the 1st day of January of a year, the period ending on the 31st day of March of the following year, in respect whereof financial statement of the company or body corporate is made up: Provided that the Central Government may, on an application made by that company or body corporate in such form and manner as may be prescribed, allow any period as its financial year, whether or not that period is a year.