Accounts of Companies
Various provisions under Companies Act, 2013 with respect to Accounts of Companies- Provisions related to Accounts to be kept at Registered office of the Company, Accounts which needs to be kept for 8 financial years, True and fair/Accounting standard/Schedule III, Consolidated financial statement, Re-opening of accounts, Constitution of National financial reporting authority (NFRA), Voluntary revision of financial statements or board’s report, Approval & signing of financial statement (FS), Board Report (BR), Corporate Social Responsibility (CSR), Copy of Financial Statements to be filled with Registrar and Internal Audit.
|Sr. No.||Section Ref||Highlights of section in brief|
|1||128||To be kept at Registered office:
Books of account etc. of the Company (including its branch or office) shall be prepared and kept at its registered office
|2||128||To be kept for 8 FY’s:
The books of account including all vouchers relevant to any entry shall be kept for the period of not less than 8 FY’s immediately preceding FY
|3||129||True and fair/Accounting standard/Schedule III:
The financial statement shall give true and fair view, comply with accounting standards and prepared in form as provided in schedule III
|4||129||Lay before AGM:
At every AGM the board of directors lay before meeting the financial statement
|5||129||Consolidated financial statement:
Where company has one or more subsidiaries or associate companies, in addition to financial statement prepare a consolidated financial statements. Also required separate statement containing silent feature of subsidiaries and associates Co.
|6||130||Re-opening of accounts :
The Company can open and recast its books of accounts upto 8 FY’s base on application made by Central Govt, Income Tax, SEBI, any other statutory body or (any person concern-fees Rs. 5000) and order by court or tribunal to effect earlier fraudulent or mismanagement accounts.
|7||131||Voluntary revision of financial statements or board’s report:
If appears to Directors that FS not comply with section 129 or section 134- may prepare revised financial statements or report in respect of any of preceding 3 FY’s after obtaining approval of tribunal on application made.
|8||132||Constitution of National financial reporting authority (NFRA):
Central Govt. may constitute NFRA
– to provide for matters related accounting and auditing standard
– have power to investigate for such class of body corporate or persons into the matter of professional misconduct of any member CA or firm of CA under ICAI (provided that no other institute or body shall initiate of continue any proceeding where NFRA has initiated has initiated an investigation).
– have the same power of civil code under code of civil procedure
|9||133||Central Govt. to prescribed accounting standard as recommended by ICAI and after consultation with NFRA|
|10||134||Approval & signing of financial statement (FS), Board Report (BR):
FS (including consolidated FS-if any) – approved by BOD, signed by chairperson (if authorise) or by two Director (out of that one MD-if any) and CEO/CFO/CS wherever appointed, One person Co.- only by one Director for submission to auditors for his report.
Board Report –signed by chairperson (if authorise) or by two Director (out of that one MD-if any) or director where there is one director.
Signed FS include- notes forming part, audit report and Board report
|11||135||Corporate Social Responsibility (CSR):-
|12||136||Audited FS need to send to each member before 21 days of general meeting (refer other provisions).
Refer this section if listed Co. / foreign subsidiary / subsidiary Co. etc.)
|13||137||Copy of FS to be filled with Registrar:
– within 30 days of AGM
– within 180 days from closure of FY (in case of 1 person Co.)
– attached accounts of subsidiaries incorporated outside India (where not audited/not required in local laws of that country then English transaction of unaudited FS)
Companies required to appoint internal auditors
– Listed Co.
– Unlisted public Co. (in preceding FY- paid up share capital of Rs. 50 crores or more or turnover Rs. 200 crores or more or O/s loan or borrowing from banks or public financial institutions of Rs. 100 crores or more or o/s deposit of Rs. 25 crores or more
– Private Co.- in preceding FY – Turnover of Rs. 200 Crores or more or O/s loan or borrowing from banks or public financial institutions of Rs. 100 Crores