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Section 129

Financial statement

Regulation 33 , 52 of LODR

Section 129. Financial statement

(1)
The financial statement shall give a true and fair view of the state of affairs of the company or companies, comply with the accounting standards notified under section 133 and shall be in the form or forms as may be provided for different class or classes of companies in Schedule III:
Proviso

Provided that the items contained in such financial statements shall be in accordance with the accounting standards:

Proviso

Provided further that nothing contained in this sub-section shall apply to any insurance or banking company or any company engaged in the generation or supply of electricity, or to any other class of company for which a form of financial statement has been specified in or under the Act governing such class of company:

Proviso

Provided also that the financial statements shall not be treated as not disclosing a true and fair view of the state of affairs of the company, merely by reason of the fact that they do not disclose—-

(a)
in the case of an insurance company, any matters which are not required to be disclosed by the Insurance Act, 1938, or the Insurance Regulatory and Development Authority Act, 1999;
(b)
in the case of a banking company, any matters which are not required to be disclosed by the Banking Regulation Act, 1949;
(c)
in the case of a company engaged in the generation or supply of electricity, any matters which are not required to be disclosed by the Electricity Act, 2003;
(d)
in the case of a company governed by any other law for the time being in force, any matters which are not required to be disclosed by that law.
(2)
At every annual general meeting of a company, the Board of Directors of the company shall lay before such meeting financial statements for the financial year
(3)
Where a company has one or more subsidiaries , it shall, in addition to financial statements provided under sub-section ( 2 ), prepare a consolidated financial statement of the company and of all the subsidiaries in the same form and manner as that of its own which shall also be laid before the annual general meeting of the company along with the laying of its financial statement under sub-section ( 2 ):
Proviso

Provided that the company shall also attach along with its financial statement, a separate statement containing the salient features of the financial statement of its subsidiary or subsidiaries in such form as may be prescribed :

Proviso

Provided further that the Central Government may provide for the consolidation of accounts of companies in such manner as may be prescribed .

Explanation

For the purposes of this sub-section, the word “subsidiary” shall include associate company and joint venture.

(3)
Where a company has one or more subsidiaries or associate company, it shall, in addition to financial statements provided under sub-section (2), prepare a consolidated financial statement of the company and of all the subsidiaries and associate companies in the same form and manner as that of its own and in accordance with applicable accounting standards, which shall also be laid before the annual general meeting of the company along with the laying of its financial statement under sub-section (2):
Proviso

Provided that the company shall also attach along with its financial statement, a separate statement containing the salient features of the financial statement of its subsidiary company or subsidiaries and associate companies or companies in such form as may be prescribed

Proviso

Provided further that the Central Government may provide for the consolidation of accounts of companies in such manner as may be prescribed

(4)
The provisions of this Act applicable to the preparation, adoption and audit of the financial statements of a holding company shall, mutatis mutandis, apply to the consolidated financial statements referred to in sub-section ( 3 ).
(5)
Without prejudice to sub-section ( 1 ), where the financial statements of a company do not comply with the accounting standards referred to in sub-section ( 1 ), the company shall disclose in its financial statements, the deviation from the accounting standards, the reasons for such deviation and the financial effects, if any, arising out of such deviation.
(6)
The Central Government may, on its own or on an application by a class or classes of companies, by notification , exempt any class or classes of companies from complying with any of the requirements of this section or the rules made thereunder, if it is considered necessary to grant such exemption in the public interest and any such exemption may be granted either unconditionally or subject to such conditions as may be specified in the notification.
(7)
If a company contravenes the provisions of this section, the managing director , the whole-time director in charge of finance, the Chief Financial Officer or any other person charged by the Board with the duty of complying with the requirements of this section and in the absence of any of the officers mentioned above, all the directors shall be punishable with imprisonment for a term which may extend to one year or with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees, or with both.
Explanation

For the purposes of this section, except where the context otherwise requires, any reference to the financial statement shall include any notes annexed to or forming part of such financial statement, giving information required to be given and allowed to be given in the form of such notes under this Act.

129A. Periodical financial results

The Central Government may, require such class or classes of unlisted companies, as may be prescribed,—

(a)
to prepare the financial results of the company on such periodical basis and in such form as may be prescribed;
(b)
to obtain approval of the Board of Directors and complete audit or limited review of such periodical financial results in such manner as may be prescribed; and
(c)
file a copy with the Registrar within a period of thirty days of completion of the relevant period with such fees as may be prescribed.
Notes, amendments & references (22)

In case of Government Company, Section 129 shall not apply to companies engaged in defence production to the extent of application of relevant Accounting Standard on segment reporting. Exemption notification dated 05.06.2015 is substituted vide notification dated 23.02.2018 To view the notification, Click Here

In case of Government Company, Section 129 shall not apply to the extent of application of Accounting Standard 17 (Segment Reporting) to the companies engaged in defence production vide GSR 463(E) dated 5th June, 2015.

(The exceptions, modifications and adaptations provided above shall be applicable only to those Government Companies which has not committed a default in filing its financial statements under section 137 of the said act or annual return under section 92 of the said act with the registrar, vide notification dated 13th June, 2017)

To view the notification, Click Here

Explanation. – For the purposes of this Act, the term ‘start-up’ or “start-up company” means a private company incorporated under the Companies Act, 2013 (18 of 2013) or the Companies Act, 1956 (1 of 1956) and recognised as start-up in accordance with the notification issued by the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry.

To view the schedule, Click Here

form and manner Refer Rule 6- Companies (Accounts) Rules,2014 and General Circular No. 39-2014 .To view the rule, Click Here

as may be prescribed Refer Rule 5 of The Companies (Accounts)Rules,2014.To view the rule, Click Here

as may be prescribed Refer Rule 6 of The Companies (Accounts)Rules,2014.To view the rule, Click Here

Substituted vide Companies (Amendment) Act, 2017 dated 03.01.2018, effective from 07.05.2018. To view commencement notification, Click Here

To view the notification of Companies Amendment Act,2017 Click Here

Refer Rule 6- Companies (Accounts) Rules,2014 and General Circular No. 39-2014 .To view the rule, Click Here

Provided that Substituted vide Companies (Amendment) Act, 2017 dated 03.01.2018, effective from 07.05.2018. To view commencement notification, Click Here

Refer Rule 5 of The Companies (Accounts)Rules,2014.To view the rule, Click Here

Provided further that Substituted vide Companies (Amendment) Act, 2017 dated 03.01.2018, effective from 07.05.2018. To view commencement notification, Click Here

Refer Rule 6 of The Companies (Accounts)Rules,2014.To view the rule, Click Here

The Notification dated 05.02.2018 is amended to omit the restriction of seven years vide notification dated 02.04.2018. To view the Notification, Click Here

The provisions of Accounting Standard 22 or Indian Accounting Standard 12 relating to deferred tax asset or deferred tax liability shall not apply, for seven years with effect from the 1st April, 2017, to a Government company which:—

(a) is a public financial institution under sub-clause (iv) of clause (72) of section 2 of the Companies Act, 2013;

(b) is a Non-Banking Financial Company registered with the Reserve Bank of India under section 45-IA of the Reserve bank of India Act, 1934; and

(c) is engaged in the business of infrastructure finance leasing with not less than seventy five per cent. of its total revenue being generated from such business with Government companies or other entities owned or controlled by Government vide notification dated 05.02.2018. To view the Notification, Click Here

129A. Periodical financial results Inserted vide Companies (Amendment) Act, 2020 dated 28.09.2020 with effect from 22.01.2021. To view the Act, Click Here and to view the commencement notification, Click Here .