Director’s Report- Comprehend the Company’s Account
It might not be that hard to meet the eligibility criteria of a director of a Singapore company, but acting the role of director is not an easy job. The Director’s Report is one the statutory obligations of ACRA, which must take care by the director of the company.
What is a Directors Report?
The Director’s Report is a significant component of every Singapore company’s audited or unaudited account and annual report. Other components being balance sheet, financial statement, and other documents.
Many of Singapore companies take help of professional firms to prepare the Director’s Report on their behalf. The auditor of the company will compile the report for director’s approval. The exempt companies should prepare and submit their unaudited accounts along with the Director’s report.
If you have incorporated your company recently and you have no idea about the ‘exempt’ category, kindly go through the following criteria of exempt companies:
A company whose
- Annual turnover is less than 5 million SGD, and
- The number of the individual shareholders is less than 20, and corporate shareholder is 0.
A dormant company (that has no accounting transactions record for a financial year) is also exempted from submitting audited account in Singapore.
When You need a Director’s Report?
Typically, the Director’s Report is required whenever your company needs to submit its annual return with ACRA.
An annual return of Singapore company has to be submitted within 30 days of its Annual General Meeting (AGM). As per the law, it is a mandatory requirement for every company to hold AGM once in every calendar year. The period between two AGMs should be 15 months. Nevertheless, a newly incorporated company can hold its first AGM within 18 months from its date of incorporation.
The job of compiling Director’s Report is not an easy task for a novice person and thus, expertise of professional needed to make it more sound and authentic. Our expert accountants are well accustomed to the Singapore accounting standards and can prepare compliant-friendly and effective Director’s Report.
What Should be Included in a Director’s Report?
According to the Section 201 of the Singapore Companies Act, a Director’s Report should include the following aspects:
- An Approved Written Resolution by Director
- Signed by minimum two directors (signature of one director will do in case of single director)
- Profit and Loss Statement of the company for the financial year
- Statement of the company’s affairs at the end of its financial year
- Particulars or list of the directors as at the date of the Director’s report
- Disclosure of each director’s interests in the company
Since above-stated are the basic elements of a Director’s Report, you are advised to seek the expert advice of the third-party firm to make your company’s Director’s Report unexceptionally efficient and up-to-date.
Who should Draft My Company’s Director’s Report?
Ideally, a certified accountant should draft your company’s Director’s Report, who has in-depth knowledge of the Singapore accounting. It is not advisable to draft the report on your own unless you have professional expertise. Because in the end, it is the director of the company who signs off will be held accountable for completeness and accuracy of the Director’s Report. The director is the one who needs to face the penalties of authorities, in the case of any legal issue arising out of the report.
It is the report that can serve as a yardstick to measure the state of your financial conditions or company account. The potential investors, business partners, supplier or customers of a business often use the Director’s Report to determine their final decisions. Thus, companies must take good care of this essential aspect of their business. It can partially make or break the future of business. Thereby, you are advised to take the help of professionals who can ensure to deliver complaint-friendly, informative and impressive Director’s Report for you.
Do you need help for your director’s report?
We can help you with our expertise and years of experience! Our experts are adept in drafting the unaudited financial report for the exempt companies. Contact us to get FREE Consultation Service!
Our Fee Structure
|Directors’ report if the company is dormant||S$200||Per Report|
|Directors’ report with small and simple structure||S$350-S$700||Per Report|
|Directors’ report with medium to complicated structure||S$700-S$1500||Per Report|