Background: As per the Companies Act 2013, Director’s Report is a financial document produced by the Board of Directors of an enterprise at the end of the financial year. LexStart lists down the information to be recorded in this report.

At the end of a financial year, Limited Companies are required to file a financial document known as Director’s Report. This is part of the statutory accounts that need to be presented at the closing of an accounting year. This document outlines the financial state of the firm and is produced by the board of directors.

The following information must be mandatorily disclosed in the Director's Report filed by the Board of Directors:

þ Dividend, if declared and amount, if any, carried forwarded to reserves

þ Details of ESOPs

• Options granted
• Options vested
• Options exercised, and
• Total number of Options in force, if any
  
  

þ Information about the financial performance / financial position and details of the subsidiaries/associates/Joint Venture (JV)

þ Details of loans, investments and guarantees by the company

þ Details relating to deposits, covering the following:

• Accepted during the year
• Remained unpaid or unclaimed as at the end of the year
• Whether there has been any default in repayment of deposits or payment of interest thereon during the year and if so, number of such cases and the total amount involved (i) at the beginning of the year (ii) maximum during the year and (iii) at the end of the year.
• Details of deposits which are not in compliance with the requirements of Chapter V of the Act
  
  

þ Website address

þ Disclosures under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

þ Borrowing by the company

þ Details of rent paid

þ Electricity expenses

þ Director remuneration (for each director)

þ Details of transfer of shares during the financial year

þ Break up of related party transaction

• Name of related party and nature of relationship
• Duration of the agreement

Also read: Annual compliance checklist for startups

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