Monday, October 18, 2021
HomeCompany LawWho can digitally sign the Financial Statements of a Company?

Who can digitally sign the Financial Statements of a Company?

Short Summary:

Due to CoVID 19, it becomes difficult for Companies throughout the country to hold the physical Board Meeting. Therefore, many companies are holding their Board Meeting for the approval of the financial statement through Video Conferencing.

As many companies are holding Video Conferencing Board meetings and Directors are not available at the same place, It is difficult to get the financials signed by the Directors physically.

Now the question is, Can the Financial statements be signed digitally by the Directors?

Q1. Who can sign the Financial Statement?

As per Section 134(1), the Financial Statement of the company can be signed by,

  • the chairperson of the company where he is authorized by the Board or
  • by two directors out of which one shall be the Managing Director if any, and
  • the Chief Executive Officer, the Chief Financial Officer and the
  • Company Secretary of the company, wherever they are appointed, or
  • in the case of a One Person Company, only by one director, for the submission to the Auditor for his report thereon.

The above-mentioned person can sign the Financial Statement of the company according to the management structure of the Company.

Q2. Can the financial statements be signed digitally?

Due to CoVID 19 situation, this is a very common question for the professionals and Corporates.

  • Digital Signature:

A digital signature is used to authenticate a document. As the digital equivalent of a handwritten signature or a stamped seal.

DSC can only be used for signing the documents. The most popular usage is signing the PDF files for Tax Returns, MCA, and other websites. Signing via DSC gives the assurance of not only the integrity of the signer but also the data. It is proof of untampered and unaltered data.

  • The signing of Financials:

As we have already discussed above, who can sign the financial statement of the Company?

As per Section 134, it is specifically mentioned that the Financial statement should be signed. However, there is nowhere mentioned that the Financial statement should be signed physically or digitally

Therefore, as per the meaning of the Digital signature and section 134, we can opine that the financial statements of the Company can be signed either physically or digitally.

In simple words, we can opine that the Financial Statements of the Companies can be signed through Digital signatures as well.


Companies can get their Financial statements signed even with the Digital Signature of the Directors, CEO, CFO, CS, and the Statutory Auditors.

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

Leave a Reply

Follow Us


Recent Posts

GST audit

GST Audit Checklist – 7 Essential Checkpoints For a Perfect GST Audit Tool

GST was introduced in the nation to ease the taxpayers' efforts and bring uniformity in the taxation structure of India. Businesses with multiple registrations still...

CBDT clarification regarding carry forward of losses

CBDT clarification regarding carry forward of losses in case of change in shareholding due to strategic disinvestment Aims to make disinvestment deals more attractive for...
Credit Guarantee

Emergency Credit Line Guarantee Scheme modified and Extended till 31.03.2022

Ministry of Finance vide press release 1759251 dated 29th September 2021 has extended the scope of ECLGS’ and scheme extended till 31.03.2022 or till...

Statutory Compliance Calendar for October, 2021

About ARTICLE: This article contains various Compliance requirements for the Month of October, 2021 under various Statutory Laws. Compliance requirement under Income Tax Act, 1961 Sl. Compliance Particulars Due...
e invoicing

e-Invoicing Under GST : 7 Positive Impacts on Small & Medium Businesses

e Invoicing in GST is the new face of the GST structure in India. It is a positive step taken by the government to...

Most Popular