Skip to content

CS Executive · Corporate Accounting and Financial Management · Introduction to Corporate Accounting

Section 129(1) of the Companies Act, 2013 provides that its requirement to follow the Schedule III form of financial statements does NOT apply to which of the following?

The second proviso to section 129(1) excludes insurance companies, banking companies and companies engaged in generating or supplying electricity, along with any class of company whose form of financial statement is specified under its own governing Act. Size, absence of subsidiaries or section 8 status do not qualify for this exclusion.

  1. AA banking company, an insurance company or a company generating or supplying electricityCorrect
  2. BA private company with a paid-up capital below one crore rupees
  3. CA company having no subsidiaries
  4. DA company incorporated under section 8 only

Explanation

The second proviso to section 129(1) says that its provisions do not apply to any insurance or banking company, or any company engaged in the generation or supply of electricity, or any other class of company for which a form is specified under the Act governing it. Size, subsidiaries or section 8 status are not grounds mentioned.

Did you get it right without looking?

One question tells you little. A timed set on Introduction to Corporate Accounting shows your real accuracy, how long you take and where you lose marks.

Practise Introduction to Corporate AccountingFree diagnostic mock

More Introduction to Corporate Accounting questions