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of <h1>Companies Must Annex Profit and Loss Account to Balance Sheet per Section 216 of Companies Act, 1956.</h1> Section 216 of the Companies Act, 1956 mandates that a company's profit and loss account must be annexed to its balance sheet. Additionally, the auditors' report, which may include any separate, special, or supplementary reports, must be attached to the balance sheet. This requirement ensures transparency and accountability in financial reporting, allowing stakeholders to assess the company's financial performance and compliance with statutory obligations.
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