Skip to content

CA Intermediate · Corporate and Other Laws · Accounts of Companies

Zenith Polymers Ltd, a public company, closed its books for the year ended 31 March. The Board wants to know who must sign the financial statements on behalf of the Board before they are adopted and sent to the auditor. Under the Companies Act, 2013, the financial statements must be signed by:

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 where appointed. Shareholders and the auditor do not sign for the Board.

  1. AThe chairperson alone, whether or not authorised by the Board
  2. BThe company secretary and the statutory auditor
  3. CAny two shareholders present at the annual general meeting
  4. DThe chairperson, or two directors one of whom is the managing director, along with the CEO, CFO and company secretary where they are appointedCorrect

Explanation

The Act requires the financial statements to be signed by the chairperson authorised by the Board, or by two directors of whom one is the managing director (if any), along with the CEO, CFO and company secretary, where they are appointed. The chairperson-alone option ignores the need for authorisation and for the other officers. The auditor reports on the statements; the auditor does not sign them on behalf of the Board.

Did you get it right without looking?

One question tells you little. A timed set on Accounts of Companies shows your real accuracy, how long you take and where you lose marks.

Practise Accounts of CompaniesFree diagnostic mock

More Accounts of Companies questions