Financial Statements of a Company

Schedule III of Companies Act 2013

The prescribed legal format and guidelines that companies in India must follow while preparing their Balance Sheet and Statement of Profit and Loss.

Statement of Profit and Loss

A financial statement that shows the revenue and expenses of a company over a specific period, ultimately arriving at the net profit or loss.

Balance Sheet (Financial Position)

A statement showing the assets, liabilities, and equity of a company at a specific date, structured under specific major heads and sub-heads.

Current Assets and Non-Current Assets

Non-current assets are long-term investments held for use, while current assets are short-term assets expected to be realized or consumed within 12 months or the operating cycle.

Current Liabilities and Non-Current Liabilities

Non-current liabilities are long-term obligations due after 12 months, whereas current liabilities are short-term debts due within the normal operating cycle.