Financial Statements and MIS Services

Financial statements are the formal reports of a business's financial position and performance – the balance sheet, the profit and loss statement, the cash flow statement and the notes – prepared under the applicable accounting standards and, for companies, in the Schedule III format of the Companies Act, 2013. MIS (management information system) reports are the internal monthly or quarterly reports that owners and managers use to run the business. IMAK Advisory, an ICAI-registered CA firm in Bengaluru, prepares financial statements and MIS for companies, LLPs, firms, startups and proprietors across India, and helps owners, lenders and investors read them through financial statement analysis.

The same set of numbers is used by the auditor, the tax department, the bank, investors and the board. When the year-end accounts are prepared in a rush, the notes are copied from last year, or the monthly reports never match the audited figures, every one of those users loses confidence. This page explains what our financial statements and MIS service covers, the formats and deadlines that apply, how financial statement analysis works with ratios and cash flows, how business valuation using financial statements is done, and the CMA full form in balance sheet terms that banks use.

• Year-end financial statements in Schedule III format, with notes and disclosures
• Cash flow statement and statement of changes in equity where required
• Accounting policies and Ind AS or AS compliance
• Audit schedules and support during the statutory audit
• Monthly or quarterly MIS: profit and loss, cash flow, receivables, budget versus actual
• Financial statement analysis with ratios, trends and commentary
• Inputs for valuation, bank limits and investor reporting

We work from your books – in Tally, Zoho Books, QuickBooks or other software – and produce the statements and reports in the formats your auditor, board, bank and investors need.

1. Review the trial balance and confirm opening balances with last year's audited accounts
2. Complete year-end adjustments: depreciation, provisions, accruals, prepaid expenses, inventory valuation, deferred tax
3. Map ledgers to the Schedule III line items and prepare the balance sheet and profit and loss
4. Prepare the cash flow statement and, for Ind AS companies, the statement of changes in equity
5. Draft notes: accounting policies, related parties, contingent liabilities, ageing schedules, ratios and other disclosures
6. Prepare audit schedules and reply to the auditor's queries
7. Set up the monthly MIS pack and deliver it on a fixed date
8. Present a short analysis of the year to the owners or board

The notes are not filler. They contain much of the information a lender or investor actually reads: borrowings and security, ageing of receivables and payables, related-party transactions, contingent liabilities and commitments, and the explanations for large changes in ratios.

Companies prepare their financial statements in the Schedule III format. Amendments that apply from financial year 2021-22 added several disclosures that are now routinely checked by auditors and banks.

• Shareholding of promoters and changes during the year
• Ageing schedules for trade receivables, trade payables and capital work in progress
• Title deeds of immovable property not held in the company's name
• Borrowings from banks on the security of current assets, and whether quarterly statements agree with the books
• Wilful defaulter status, if any
• Transactions with struck-off companies
• Analytical ratios with reasons for change of more than 25%
• Undisclosed income surrendered in tax assessments
• Crypto or virtual currency holdings
• Utilisation of borrowed funds and share premium

Each of these needs data from outside the trial balance – the registrar's records, bank stock statements, property papers – so they should be collected through the year, not in the week before the audit.

Companies follow either the Accounting Standards (AS) or Indian Accounting Standards (Ind AS), notified under the Companies Act. Ind AS applies to listed companies and to unlisted companies above the net worth threshold, and to their holding, subsidiary, joint venture and associate companies. Other companies follow AS, with some relaxations for small and medium-sized companies.

Firms, LLPs, trusts and proprietors that are not companies follow the ICAI's Accounting Standards according to their level, which depends on turnover and borrowings. Many small entities use the relaxations available to them; we confirm the level and the standards that apply before the year-end.

Entities that are not companies have more freedom in format but the same need for reliable numbers. An LLP files its Statement of Account and Solvency with the registrar and must have its accounts audited once its turnover or contribution crosses the limits in the LLP rules. Partnership firms prepare accounts that support the partners' capital accounts, interest and remuneration, which the tax law allows only within limits written in the deed. Trusts and societies prepare fund-based accounts that show how grants and donations were used, which supports their tax exemption. Proprietors often need only a profit and loss account and balance sheet, but banks, landlords and government tenders increasingly ask for them, so a simple, consistent format from the books saves time every year. We follow the ICAI's guidance for each type of entity and keep the presentation close to Schedule III where readers expect it.

Financial statements prepared in time make the rest of the calendar simple. We plan the year-end close with the auditor and the tax audit, so that the board meeting, the AGM, the registrar filings and the income-tax return follow in order.

Year-end accounts are needed by law; monthly MIS is needed to run the business. A good MIS pack is short, arrives on a fixed date, and answers the questions the owner would otherwise ask the accountant one by one.

The MIS must reconcile with the books. If the monthly report shows a profit that the year-end accounts later reverse, the owners stop trusting both. We close the books each month on the same basis as the year-end – with accruals, depreciation and provisions – so that the twelfth month of MIS is close to the audited result.

Financial statement analysis is the process of reading financial statements to judge a business's profitability, liquidity, solvency, efficiency and cash generation, and to compare it with its own past, its budget and other businesses. It is what banks do before sanctioning a loan, what investors do before investing, and what owners should do every quarter.

Analysis is only as good as the statements behind it. One-off items, related-party transactions, changes in accounting policy and window dressing at the year-end can all distort ratios, so the first step is to read the notes and adjust for these.

No single ratio is good or bad on its own. A current ratio of 1.2 may be comfortable for a retailer with fast-moving stock and weak for a manufacturer with long credit periods. Analysis compares the ratio with the business's own history, its plan and its peers, and asks why it moved.

Revenue grew 30%, which looks healthy. But the gross margin fell from 25% to 23%, net profit barely moved, receivable days rose from about 44 to about 65, and inventory grew faster than sales. Operating cash flow turned negative, and the gap was funded by doubling short-term borrowings. The analysis tells the owner that growth came from longer credit and more stock, not from better pricing – and that the next bank renewal will raise questions about receivables and the debt service coverage ratio. The useful response is not a new loan but tighter credit terms, a review of slow-moving stock and a price review for low-margin customers.

Many profitable businesses run out of cash because profit is tied up in receivables and inventory. The cash flow statement shows this directly: operating cash flow lower than profit for several years is a warning sign, as is a business funding its operations by borrowing or delaying statutory payments. In financial statement analysis we always reconcile profit to operating cash flow and explain the gap in plain language.

• Rising receivable days: customers paying later
• Rising inventory days: slow-moving or obsolete stock
• Falling payable days: suppliers tightening credit
• Capital spending funded by short-term borrowing
• Dividends or drawings larger than operating cash flow

Business valuation using financial statements starts with the historical balance sheet and profit and loss, adjusts them for one-off and non-business items, and then applies one or more valuation approaches. The financial statements are the base; the valuation also depends on forecasts, the market and the purpose of the valuation.

Normalising the statements is the step most often skipped. Owners' salaries above or below market, rent paid to related parties, one-time legal costs, surplus cash and non-operating assets all change the value and must be adjusted before any multiple is applied. Where a valuation is needed under the Companies Act, the Income-tax Act or FEMA, the valuer's qualifications and method are prescribed, and a registered valuer may be needed.

In banking, the CMA full form in balance sheet analysis is Credit Monitoring Arrangement. CMA data is the set of forms in which a borrower presents its past and projected financial statements to a bank when applying for or renewing working capital and term loans. The bank uses it to assess the working capital gap, the drawing power and the borrower's ability to repay.

CMA is also used as the professional designation of a Cost and Management Accountant, a member of the Institute of Cost Accountants of India, so the context decides the meaning. For a borrower, CMA data must agree with the audited financial statements for past years, and the projections must be realistic, because the bank tests them against the stock and book-debt statements submitted each month after sanction.

The auditor's report is part of the package that banks and investors read first. An unmodified opinion says the statements give a true and fair view. A qualified opinion says they do, except for a specific matter. An adverse opinion says they do not, and a disclaimer says the auditor could not obtain enough evidence to form an opinion. An emphasis of matter paragraph draws attention to something already disclosed, such as uncertainty about a large legal case, without changing the opinion. For most companies, the report also includes the Companies (Auditor's Report) Order, 2020 (CARO), with comments on fixed assets, inventory, loans, statutory dues, borrowings and fraud. Preparing complete, well-supported statements is the most reliable way to avoid qualifications.

Financial statements are prepared on the assumption that the business will continue for the foreseeable future. Where losses, negative net worth, loan defaults or loss of a major customer cast doubt on this, management must assess it and disclose material uncertainty, and the auditor will comment. Events after the balance sheet date also matter: some, such as the settlement of a court case relating to the year, require the numbers to be adjusted; others, such as a fire or a large new borrowing after the year-end, are disclosed in the notes. We check both before the statements are finalised.

A company with subsidiaries, associates or joint ventures must prepare consolidated financial statements in addition to its standalone statements. Consolidation adds the subsidiaries' assets, liabilities, income and expenses line by line, eliminates intercompany balances and transactions, and shows non-controlling interests separately. Associates and joint ventures are generally included using the equity method. Foreign subsidiaries' statements must be translated and aligned to the group's accounting policies. Consolidation is often where delays arise, because subsidiaries close late or record intercompany balances differently; we set a group calendar and confirmation process before the year-end.

The income-tax return starts from the profit in the financial statements, but tax law has its own rules. Income Computation and Disclosure Standards apply to most businesses that follow the mercantile system of accounting (individuals and HUFs not under tax audit are excluded), and certain items – depreciation, provisions, payments to related parties, payments without TDS – are adjusted in the tax computation. Businesses under tax audit need audited statements before the tax audit report. Small businesses under presumptive taxation still need records, and a basic balance sheet often helps when a bank asks for accounts. We prepare the statements and the tax computation together so that differences are explained, not discovered.

Startups face particular issues: share-based payments for ESOPs, convertible instruments from investors, capitalisation of software development, revenue recognition for subscriptions, and going concern questions while burning cash. Investors expect monthly MIS with cash runway, burn rate and unit economics, and audited statements that match. Early decisions on accounting policies – such as when to recognise subscription revenue or how to value ESOPs – are expensive to reverse later, so we agree them in the first year with the auditor.

Most MIS fails not because the numbers are wrong but because nobody reads it. The pack should start with one page of the five or six numbers the owner checks first, followed by the detail. Variances should come with reasons, not just percentages. Charts should show trends over at least 12 months. The same format should be used every month so that changes stand out. And the pack should arrive on a fixed working day, early enough for decisions on collections, purchases and hiring. We design the format with the owners and refine it over the first three months.

Lenders and investors read financial statements for different reasons. A bank wants to know whether loans will be repaid: it looks at debt service coverage, current ratio, the security and whether the quarterly statements submitted to it agree with the books. An investor wants to know whether the business is growing profitably: it looks at revenue quality, margins, cash burn and the cap table. Both look for consistency between the audited accounts, the tax returns, GST returns and the MIS.

• Audited statements on time, with a clean or explained audit report
• Notes that explain borrowings, security, contingent liabilities and related parties
• Stock and book-debt statements that agree with the books
• MIS that reconciles to the audited figures
• Projections that start from the latest actuals

Each adjustment changes profit and the balance sheet, and most of them are questioned by auditors and tax officers. We document the basis for each one, so that the audit file and the tax computation tell the same story.

1. Agree the scope, the reporting framework and the timetable with you and your auditor
2. Review the trial balance, last year's accounts and open items
3. Complete year-end adjustments with supporting working papers
4. Prepare the financial statements and notes, and review them internally
5. Share drafts with you and the auditor, and resolve queries
6. Finalise for board approval and registrar filing
7. Set up the monthly MIS format and calendar for the new year
8. Present a short financial statement analysis to owners or the board

For businesses without a finance team, we combine monthly bookkeeping, MIS and year-end accounts, so that the year-end is a short step rather than a separate project.

We do not publish fees. The cost depends on the size and complexity of the business, the accounting framework, the condition of the books, the number of entities, the MIS frequency and the depth of analysis needed. Our team shares the exact total after reviewing your requirements.

A Manufacturer Before Its Bank Renewal

A manufacturer's stock statements to the bank showed higher inventory than the books. Before the renewal, we reconciled the two, corrected the valuation method, prepared the audited statements with the Schedule III disclosures and the CMA data from the same numbers, and the bank renewed the limit after one round of queries.

A Startup Preparing for Due Diligence

A startup's monthly reports showed profits that the audited accounts reversed because of unrecorded expenses and revenue cut-off. We moved the monthly close to an accrual basis and built an MIS pack that reconciled with the books, which the investor's team later used in due diligence.

A Family Business Considering a Sale

The owners of a trading business wanted to know what it was worth. We normalised three years of statements for owners' salaries, related-party rent and one-time costs, prepared a financial statement analysis and passed the adjusted figures to a valuer.

• Notes copied from the previous year without updating
• Missing Schedule III disclosures such as ageing and ratios
• Bank stock statements that do not agree with the books
• No provision for gratuity or leave encashment
• Related-party transactions not identified
• Cash flow statement that does not tie to the balance sheet
• MIS on a cash basis, year-end on an accrual basis
• Contingent liabilities omitted

First Year After Incorporation

The first financial year can run up to 18 months for a company incorporated late in a year; the first statements must be planned accordingly.

Change of Auditor or Accountant

Opening balances must be agreed with the previous year's audited accounts and any differences explained.

Group Companies

Holding companies prepare consolidated statements; intercompany balances must be confirmed and eliminated.

Foreign Subsidiaries of Indian Companies

Statements of overseas subsidiaries are needed for consolidation and for the annual performance report under FEMA.

• We do not act as your statutory auditor where independence rules prohibit it
• We do not prepare statements without the books and supporting documents
• We do not change figures to meet a loan covenant or a valuation target
• We do not sign valuation reports that require a registered valuer unless qualified
• We do not give investment advice based on the analysis

If your accounts team closes the books monthly, your software produces Schedule III statements and your auditor is satisfied with the notes, you may need us only for a review of the disclosures or a one-time financial statement analysis. If you are a proprietor with simple accounts below audit limits, a basic profit and loss and balance sheet from your books may be enough.

1. Which accounting framework applies – AS, Ind AS or non-company standards?
2. Are the books reconciled up to the last month?
3. Who are the related parties, and what transactions happened?
4. Have bank stock statements matched the books?
5. Are there pending legal or tax cases?
6. What reports does the board, bank or investor need?
7. When does the auditor plan to start?

Financial statements and MIS contain every detail of your business. As chartered accountants we follow ICAI's confidentiality rules. Access is limited to named team members, and reports are shared only with the people you approve.

Use this list for each year-end and each monthly close.

• Trial balance reconciled and opening balances agreed
• Year-end adjustments documented
• Schedule III mapping and disclosures complete
• Cash flow statement ties to the balance sheet
• Related parties and contingent liabilities disclosed
• Ratios computed and changes above 25% explained
• Auditor's queries closed
• Board approval and registrar filing dates fixed
• Monthly MIS reconciled with the books
• Annual analysis shared with owners

Our only office is in Whitefield, Bengaluru, where clients can meet us in person. Financial statements and MIS are prepared from your books online, so we serve businesses in every state. We do not have offices outside Bengaluru.

What are financial statements?

The balance sheet, profit and loss statement, cash flow statement, statement of changes in equity (where applicable) and notes, prepared under the applicable accounting standards.

What is MIS in accounting?

Management information system reports – monthly or quarterly internal reports on profit, cash, receivables and key measures for owners and managers.

What is financial statement analysis?

Reading financial statements to judge profitability, liquidity, solvency, efficiency and cash flow, using trend, common-size, ratio and cash flow analysis.

Which ratios are used in financial statement analysis?

Common ones are current ratio, debt-equity, debt service coverage, margins, return on capital employed, return on equity, and inventory, receivable and payable days.

What is the CMA full form in balance sheet analysis?

In banking it is Credit Monitoring Arrangement – the forms in which borrowers present past and projected financial statements to banks. CMA is also the designation of a Cost and Management Accountant.

How is business valuation using financial statements done?

The statements are normalised for one-off and non-business items, and then net asset value, earnings multiples or discounted cash flow methods are applied.

What is Schedule III?

The format prescribed by the Companies Act, 2013 for company financial statements, with separate divisions for AS, Ind AS and Ind AS NBFCs.

Is a cash flow statement mandatory?

For most companies, yes. One person companies, small companies and dormant companies are exempt.

When must company financial statements be filed?

In Form AOC-4 within 30 days of the annual general meeting, which is usually held by 30 September.

Who must follow Ind AS?

Listed companies, unlisted companies above the net worth threshold, and their holding, subsidiary, joint venture and associate companies.

What do LLPs file?

A Statement of Account and Solvency in Form 8 by 30 October and an annual return in Form 11 by 30 May.

Why does MIS differ from audited accounts?

Usually because MIS is prepared without accruals, provisions or year-end adjustments. Monthly closing on an accrual basis fixes this.

Can you prepare financial statements if we have another auditor?

Yes. We prepare the statements and support the audit; the auditor remains independent.

What disclosures did the Schedule III amendments add?

Promoter shareholding, ageing schedules, analytical ratios, title deeds, wilful defaulter status, struck-off company transactions and others.

How often should MIS be prepared?

Monthly for most businesses, with a short summary page and a fixed delivery date.

How much do financial statements and MIS cost?

We do not publish fees. The cost depends on size, framework, state of the books, entities and MIS frequency, and our team shares the exact total after reviewing your requirements.

Bookkeeping and Accounting · Statutory Audit · Virtual CFO Services · Business Valuation · Project and CMA Reports · Annual ROC Compliance

Share your latest trial balance, last year's audited accounts and the reports your board, bank or investors need. Our team will confirm the scope and the calendar.

Contact Details

Office Address

IMAK Advisory, ITPL Main Rd, Pattandur Agrahara, Whitefield, Bengaluru, Karnataka 560066, India

Phone

+91 79798 50684 (call or WhatsApp)

Email

imakadvisoryteam@gmail.com

Sources: Companies Act, 2013 (sections 2(40), 129, 134, 137 and Schedule III, as amended from 1 April 2021); Companies (Indian Accounting Standards) Rules, 2015; Companies (Accounting Standards) Rules, 2021; LLP Rules, 2009; ICAI Accounting Standards for non-company entities. Checked 2 November 2026.