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CA Intermediate · Corporate and Other Laws · Accounts of Companies

Sahyadri Foods Ltd's Board approved its financial statements for FY 2024-25. Rohit, the Company Secretary, wants to know who must sign them on behalf of the Board under the Companies Act, 2013. Which of the following is correct for a listed company having a CEO, CFO and Company Secretary?

Financial statements are signed on behalf of the Board by the authorised chairperson or by two directors, one being the managing director if any, together with the CEO, CFO and Company Secretary wherever they are appointed. The auditor reports separately and does not sign for the Board.

  1. ABy the chairperson authorised by the Board, or by two directors of whom one is the Managing Director, if any, and by the CEO, CFO and Company Secretary, wherever they are appointedCorrect
  2. BBy the Company Secretary alone, with the statutory auditor countersigning
  3. CBy any one director and the statutory auditor only
  4. DBy all the directors of the company without exception

Explanation

The financial statements must be signed on behalf of the Board by the chairperson (if authorised) or by two directors, one of whom is the managing director if there is one, along with the CEO, CFO and Company Secretary where appointed. The auditor reports on them separately and does not sign for the Board. Requiring all directors is not the rule.

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