Company Law

Due Date for Signing of Financial Statement

In this editorial, the author is going to discuss the very relevant interrogations received from our professional colleagues through our WhatsApp groups “Gyan Gurukul” concerning “Due Dates of Signing” i.e.

“What is the Due date of signing of the Financial Statement for the financial year ended 31.03.2020?”

There is confusion between corporates and professionals concerning the due dates of the Signing of the Financial Statement.

Provisions of Law

As per the provision of Section 137 of the Companies Act, 2013, the Company is required to circulate a signed copy of the financial statement along with notice of the Annual General Meeting.

Question of Editorial

What is the Due date of signing of the Financial Statement for the financial year ended 31.03.2020?”

Point 1:  As per Section 137, a Signed Copy of the Financial Statement should be circulated to the Shareholders along with a Notice of the AGM.

Point 2: As per the General Extension order of the ROC, an AGM can be held by the Companies maximum till 31st December 2020.

Point 3: If the Companies have received the consent of  the shareholders, they can hold the AGM on Shorter Notice (date of the Board Meeting/notice 31.12.2020 and date of AGM 31.12.2020)

Conclusion:

As per the above-mentioned provisions, one can opine that:

  • The Company can hold the Board Meeting for the approval of the Financial Statement on 31st December 2020
  • The Company can get the signatures on the Financial Statement from the Directors and the Auditor on 31st December 2020
  • The Company can call an AGM on Shorter Notice on 31st December 2020 and can circulate a signed copy of the financials to the shareholders.

Therefore, one can opine that the financial statement of the Companies can be signed maximum up to 31st December 2020 for the financial year ended 31st March 2020. 

CS Divesh Goyal

CS Divesh Goyal is a Fellow member of ICSI, Practicing Company Secretary, and Steering Voice in the Corporate World. He is a Prop. at Goyal Divesh & Associates, Company Secretaries. He is a competent professional having enrich 6 years post qualification experience as Company Secretary with expertise in Corporate Law, FEMA, IBC, SEBI, RBI. He has written more than 600 editorials on Companies Act, 2013 to keep at pace with the latest changes and critically analyse the implications of various provisions of the Companies Act, 2013, Insolvency & Bankruptcy Code, 2016, FEMA, RBI, SEBI etc. He is a vibrant, sought after, and spellbinding speaker and has delivered more than 200 sessions on various aspects of Company Law at ICSI, ICAI, and online platforms. Apart from his passion for his work he also believes in elevating his profession and for that dream

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