Skip to content

CS Professional · Drafting, Pleadings and Appearances · Documents under Companies Act, 2013

A company secretary is drafting a note on accounting standards for Veda Textiles Ltd.'s board. Which statement is consistent with section 133?

The Central Government may prescribe accounting standards as recommended by the Institute of Chartered Accountants of India, in consultation with and after examining the recommendations of the National Financial Reporting Authority. Neither company boards, Registrars nor SEBI prescribe them under section 133.

  1. AThe Central Government may prescribe accounting standards as recommended by the ICAI, after consultation with and examination of the recommendations of the NFRACorrect
  2. BEach company's board prescribes its own accounting standards
  3. CThe Registrar prescribes accounting standards on the NFRA's advice
  4. DSEBI prescribes accounting standards for all companies under that section

Explanation

Section 133 empowers the Central Government to prescribe accounting standards or addenda, as recommended by the ICAI, in consultation with and after examination of the recommendations of the National Financial Reporting Authority. Boards, Registrars and SEBI have no such power under this section.

Did you get it right without looking?

One question tells you little. A timed set on Documents under Companies Act, 2013 shows your real accuracy, how long you take and where you lose marks.

Practise Documents under Companies Act, 2013Free diagnostic mock

More Documents under Companies Act, 2013 questions