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CA Intermediate · Corporate and Other Laws · Accounts of Companies

Ananya Pharma Ltd approved its financial statements at a Board meeting. Who must sign the financial statements on behalf of the Board under the Companies Act, 2013, for a company that has a chairperson, managing director, CEO, CFO and company secretary?

The financial statements must be signed for the Board by the authorised chairperson or by two directors including the managing director, along with the CEO, CFO and company secretary where appointed. One director alone or only the company secretary is insufficient, and the auditor signs the audit report separately.

  1. AThe chairperson authorised by the Board, or two directors of whom one is the managing director, together with the CEO, CFO and company secretary, where they are appointedCorrect
  2. BOnly the company secretary, as the officer responsible for compliance
  3. COnly the statutory auditor, who signs after the audit is completed
  4. DAny one director, with no other signatures being needed

Explanation

The financial statements must be signed on behalf of the Board by the chairperson, if authorised by the Board, or by two directors of whom one is the managing director (and one the CEO if he is a director), and by the CEO, CFO and company secretary where they are appointed. A single director's signature or the company secretary alone is not enough. The auditor signs the audit report, not the statements on behalf of the Board.

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