(1) There shall be attached to every balance sheet laid before the annual general meeting of a company a report by the directors on the state of the company's affairs and, if the company is a holding company, on the state of affairs of the company and its subsidiaries as a group, the amount, if any, which they recommend should be paid by way of dividend and the amount, if any, which they propose to carry to reserves within the meaning of the Sixth Schedule.
(2) The said report shall be signed on behalf of the directors by two of the directors of the company.
(3) The said report shall deal, so far as is material for the appreciation of the state of the company's affairs, with any change during the financial year in the nature of the business of the company or of the company's subsidiaries, or in the classes of business in which the company has an interest whether as a member of another company or otherwise.
(4) The said report shall contain a list of bodies corporate in relation to