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IAI Actuarial Core Principles · Business Finance · Regulation of financial reporting of incorporated entities

The board of an Indian company approves its financial statements. Which combination correctly describes who must sign them under the Companies Act 2013 for a company that has appointed a CEO, CFO and company secretary?

The financial statements are signed on behalf of the board by the chairperson, or by two directors including the managing director if there is one, along with the CEO, CFO and company secretary where appointed. The auditor signs only the audit report, and shareholders do not sign.

  1. AOnly the company secretary signs
  2. BOnly the auditor signs the financial statements on behalf of the board
  3. CThe chairperson alone signs, as the CEO and CFO sign the directors' report
  4. DSigned on behalf of the board by the chairperson (or two directors, one being the managing director if any) together with the CEO, CFO and company secretary, where they are appointedCorrect
  5. Any two shareholders sign the statements before the annual general meeting

Explanation

The Act requires the financial statements to be signed on behalf of the board by the chairperson authorised by the board, or by two directors of whom one is the managing director where there is one, and by the CEO, CFO and company secretary where they are appointed. The auditor separately signs the audit report. Shareholders do not sign the statements.

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