If we look around ourselves when it comes the performance of any entity, be it company or otherwise, they are always gauged by its financial performance. That is why financials of any body corporate is very important and are being given a separate section under various Acts and other governing statues for treatment.
When we talk about financials of Indian company, the treatment of Financials statement is given under section 129, 133, Schedule III of Companies Act, 2013 read with The Companies (Indian Accounting Standards) Rules, 2015, The Companies (Accounts) Rules, 2014 and other amendment and notifications/(s) applicable from time to time. Some of the important highlights are:-
The companies which are governed by below given Act/(s) need not to compulsorily follow the provision of financial Statement under Companies Act, 2013:–
If a company contravenes the provisions of section 129, 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.
Disclaimer:– The above article is extract of preparation of financial statement of company. While preparing the financial statement, there are other important aspects also which are considered and are kept in mind while preparing them. Hence, the accountant/(s) or professional/(s) who are in charge of preparation of financials of company need to be updated with all the applicable laws which are binding for the time being.
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