Section 129 of the Companies Act, 2013
Section 129 of the Companies Act, 2013 deals with the Financial Statements of a company — how they should be prepared, what they should contain, and the standards they must follow.
📘 Section 129 – Financial Statement
✅ 1. Preparation of Financial Statements [Sub-section (1)]
Every company must prepare financial statements:
For each financial year;
That give a true and fair view of the state of affairs;
In compliance with accounting standards notified under Section 133;
In the form provided in Schedule III of the Act.
Financial statements must be laid before the company at the Annual General Meeting (AGM).
📄 "Financial Statement" includes:
As per Section 2(40):
Balance sheet,
Profit and loss account (or income & expenditure account for non-profits),
Cash flow statement (except for certain companies),
Statement of changes in equity (if applicable),
Any explanatory note forming part of the above.
✅ 2. Consolidated Financial Statements [Sub-section (3)]
If a company has subsidiaries (including associates or joint ventures), it must also prepare consolidated financial statements (CFS) and lay them before the AGM along with the standalone financials.
✅ 3. Compliance and Penalty [Sub-section (7)]
If a company fails to comply with Section 129:
The company, its Managing Director, Whole-Time Director in charge of finance, CFO, or other responsible persons can be punished with:
Imprisonment up to 1 year, or
Fine between ₹50,000 to ₹5,00,000, or
Both.
📌 Key Notes:
Must be approved by the Board of Directors before being signed and laid before the AGM.
Must be filed with the Registrar in prescribed forms (e.g., AOC-4).
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