Company Law

Signing of the Financial Statement in the CoVID 19

Short Summary:

In our previous article, we have talked about, who can sign the Financial Statement and whether the Financial Statement be signed digitally.

In this editorial, the author shall discuss the Quick bites on ‘Signing of the Financial Statement in the CoVID 19 period”.

As we have received numerous questions from our professional colleagues through WhatsApp groups “Gyan Gurukul”, inside this editorial we have attempted to clarify all those questions relating to the same.

Quick Bites:

1. What should be the date of signing of the Balance sheet/ Financial statement?The date of signing of the Balance sheet shall be any date on or after the date of the Board Meeting in which the Financial Statement is approved by the Board of Directors.
2. Whether the Auditor and the Director can sign the Financial Statements on different dates?The financial statements shall be first sign by the Directors and the same shall be signed by the Auditors of the Company.

However, the date of signing of the financial statement by the directors and auditors can be different.

3. What is the due date for holding the Board Meeting for the approval of the Financial Statements?A company is required to adopt the Financial Statement in the Annual General meeting. The due date of the Annual General Meeting is 6 months from the end of the financial year i.e. 30th September.

Therefore, one can opine that the due date of holding of the Board Meeting for the approval of the Financial Statement is on or before 30th September in case the financial year ends on March 31.

4. Whether the Company Secretary is required to sign the Financial statement?The signing of the Financials by the Company Secretary:

If a company is having the Whole-time Company Secretary, then it is mandatory to get the Financial Statement signed from the Company Secretary.

5. Whether the director and the auditor can sign the financial statement on different places?Place of the signing of the Financial Statement:

The place of signing of the Financial statement by the Auditor and the director can be the same as well as different. If both the person signs in a different place.

6. Can the Additional Director sign the Balance Sheet?Yes, the Additional Director can sign the Balance Sheet. As the additional director is having the term as a director up to the Annual General Meeting of the Company.
7. Whether it is mandatory to get the Financial statement signed from CFO / CEO??The signing of the Financials by CFO / CEO:

If a Company is having a CFO / CEO, then it is mandatory to get a Financial statement signed from them as well.

8. Can one Director and Auditor sign the Financial Statement?As per Section 134 of the Companies Act, it is mandatory that the financial statement should be signed by at least two directors.
9. Can an independent Director sign the Financial Statement?The Independent Director being a director of the Company is allowed to sign the financial statement of the Company.
10. Do the shareholders need to approve/ adopt the Financial Statement?Once the Financial statement of the Company is signed by Directors and the Auditor, it needs to bead opted by the shareholders in the Annual General Meeting of the Company.

Disclaimer: The entire contents of this document have been prepared based on relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness, and reliability of the information provided, I assume no responsibility therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not professional advice and is subject to change without notice. I assume no responsibility for the consequences of the use of such information.

IN NO EVENT SHALL I SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM, ARISING OUT OF OR IN CONNECTION WITH THE USE OF THE INFORMATION

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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