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CA Intermediate · Corporate and Other Laws · Accounts of Companies

Meridian Steels Ltd had its financial statements for 2024-25 approved by the board, signed and adopted at the AGM. Later, it finds that the statements did not comply with the prescribed requirements on the preparation of accounts, and the board wishes to revise them voluntarily. Which statement is correct under the Companies Act, 2013?

A company may voluntarily revise its financial statements or board's report for any of the three preceding financial years, but only by applying to the Tribunal. The Tribunal must be satisfied after notice to the Central Government and Income-tax authorities. A mere board resolution is not enough.

  1. ARevision is permitted by simply passing a board resolution and informing members at the next AGM
  2. BRevision of financial statements or board's report is permitted for any of the preceding three financial years only if the Tribunal is satisfied on an application by the company, and it is done after notice to the Central Government and Income-tax authoritiesCorrect
  3. CRevision is allowed only for the immediately preceding financial year with approval of the statutory auditor
  4. DRevision is not permitted at all once the statements have been adopted at the AGM

Explanation

A company may voluntarily revise financial statements or the board's report for any of the three preceding financial years, but only by making an application to the Tribunal and the Tribunal must be satisfied; notice goes to the Central Government and the Income-tax authorities, and the Tribunal considers their representations. Option A bypasses the Tribunal. Option D is wrong since revision is permitted by the Tribunal route.

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