Section 131 of the Companies Act, 2013
Section 131 of the Companies Act, 2013 – Voluntary Revision of Financial Statements or Board’s Report
Objective:
Section 131 provides a mechanism for a company to revise its financial statements or Board's report if it finds that these documents do not comply with the provisions of the Companies Act.
Key Provisions:
Applicability:
Applies to both:
Financial statements
Board's Report
Of any previous financial year
Reason for Revision:
The revision can only be done if the company believes that the documents do not comply with Sections 129 (financial statements) or 134 (Board’s report) of the Companies Act, 2013.
Prior Approval Required:
The company must obtain approval from the National Company Law Tribunal (NCLT) before revising the documents.
Limited Scope:
Revisions are allowed only for correcting non-compliances.
No revisions are allowed just to improve results or presentation.
Number of Revisions:
A company can revise the financial statements or Board’s report only once in respect of a particular financial year.
Disclosures:
The revised documents must clearly state:
The reasons for revision
The nature of changes
The auditor’s report must also be revised accordingly.
Example:
If a company discovers an error in revenue recognition after filing the financial statements, it must:
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