- Member’s Report
- Partners’ Responsibilities Statement
- Independent Auditor’s Report
- Limited Liability Partnership Balance Sheet
- Limited Liability Partnership Profit & Loss Account
- Notes to the Financial Statements
LLP’S PARTNERS’ REPORT
The Partners present their ………..st/rd Annual Report on the affairs of the LLP together with the Auditor’s Report and Financial Statements for the Financial Year ended 31st March, …….
XYZ ……….. LLP is a Limited Liability Partnership, registered & incorporated in India under the Limited Liability Partnership Act, 2008, on ………. Day of …….., ……Year
List of Partners’ names, and who are designated as partners, is available for inspection at our registered office: ……………………………….. which is also the principal place of business of XYZ…………… LLP. Further details, and copies of the Auditor’s Report and Financial Statements, can be obtained in the normal working hours from the registered office of XYZ……………. LLP.
XYZ ………….. LLP is principally engaged in the Buisness of …………………………..
REVIEW OF THE BUSINESS AND FUTURE DEVELOPMENTS[VS1]
The LLP’s business plan is to continue to invest and grow in in the Real Estate Sector particular in its existing locations and key sectors while retaining appropriate profitability. The results for the year are set out and annexed as well as furnished in our Audited Financial Statements. The Partners regard the results and future prospects to be satisfactory.
If one looks at the trend in economic growth, it is seen that gross value added in the economy has been slowing down with 7.9% in 2015-16, 6.6% in 2016-17 and just 5.6% in Q1 of 2017-18. On the same lines, industrial capacity utilization as well as industrial production has been slipping. Not only this, fiscal deficit and interest rates have also been declining. While all this was happening, demonetization and GST came along with added to disruption of economy.
Post demonetization in 2016 which resulted in return of 99 percent of the banned currency notes, Indian GDP growth has recorded a three year low @ 5.7% in first quarter of financial year 2016-17. Apart from demonetization, it is understood that uncertainty over GST roll out in Q1 and related de-stocking, holding back plans by manufacturers and wait & watch policy adopted by large consuming masses, it has so happened. During the same period in financial year 2016-17, GDP growth was 7.9%. This is due to industrial performance.
Post GST, what will be the trend? It is too early to predict or comment on Q2 performance but if recent indirect tax collection for July 2017 (first month of GST) is any indications, the figure should be much higher than 5.9%. Tax collection alone cannot indicate economic growth and as such Government should also not be happy with increased tax collection. However, it would be wrong to say that it may be a trend, as just one-month tax figures cannot be said to setting up of trend. Sales in current Q2 would be higher owing to dealers and manufactures being compelled to clear old stocks as on 30th June, 2017, including various sales schemes used.
Government should make all out efforts to ensure flexible and easy GST Compliances (which presently is not) and also ensure that we do not land up in a pool of confusions and mess-up getting created by too frequent changes or amendments in tax procedures which only indicates bad foresight and planning. This is important as we need to allow businesses to do business rather than being busy with mere compliances. Today compliances are taking a toll on everything else.
The benefits of GST in terms of lower cost and input tax credit will start get translating in next 1-2 months, besides the transitional issues which may not be there after next quarter on wards.
Hoping that everything will be better- GST compliances, industrial output, consumption and of course, Tax Governance.
The firm remains committed to embracing different ways of working through investing in its IT systems and infrastructure, with additional resources allocated to innovation in order to improve efficiency and deliver even greater value to its clients.
The firm has gradually introduces some new partners for bringing funds in the LLP to meets its working capital requirements.
The firm continues to manage its costs very carefully. However the firm is focused on developing its profile to support its clients and their business through these uncertain times.
FINANCING AND CAPITAL
The firm is financed primarily through revolving capital loans, structured in the form of a joint facility provided by banks as well as from body corporates and Individuals made available to the LLP, with guaranteed recourse to the Lenders, and through undistributed profits. There is also a capital accumulation scheme, whereby a fixed amount of capital is provided by partners through retained earnings. Although this capital is classified as a liability it does not constitute money borrowed from a financial institution.
PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties that affect the financial results of the LLP relate to the variability of the ups and down in the market. Management seeks to match the LLP’s resources to the expected demand while taking up opportunities to expand market share.
The firm is committed to developing a high performance culture where talent can thrive regardless of background, religion, sexual orientation or gender.
DISCLOSURE OF INFORMATION TO AUDITORS
In so far as the Partners are aware:
- There is no relevant audit information of which the LLP’s auditors are not aware; and
- The Partners have taken the necessary steps that they ought to have taken to make them aware of any relevant audit information and to establish that the auditors are aware of that information.
The independent auditors of XYZ……… LLP are …………………………….. who will be proposed for reappointment.
Approved by the Board of LLP and signed on its behalf by
(DPIN – ………)
PARTNERS’ RESPONSIBILITIES STATEMENT
The Partners are responsible for preparing the Annual Report and the Financial Statements in accordance with applicable law and regulations.
The Limited Liability Partnerships Act, 2008 require the Partners to prepare Financial Statements for each Financial Year. Under that law the Partners have elected to prepare the financial statements in accordance with Limited Liability Act, 2008. Under the act as applied to Limited Liability Partnerships, the Partners must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the LLP and of the profit or loss of the LLP for that year. In preparing these financial statements, the Partners are required to:
- Select suitable accounting policies and then apply them consistently;
- Make judgments and accounting estimates that are reasonable and prudent;
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Partnership will continue in business.
The Partners are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the LLP and enable them to ensure that the financial statements comply with the LLP Act 2008 as applicable to Limited Liability Partnerships. They are also responsible for safeguarding the assets of the LLP and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
These responsibilities are exercised by the Board of LLP on behalf of the Partners.
Approved by the Board of LLP and signed on its behalf by
(DPIN – ……….)
AUTHOR : VISHAL SWAIKA (CLICK HERE TO VIEW PROFILE)