Section 134 of CA 2013 : Section 134: Financial Statement, Board?S Report, Etc

Explanation using Example

Imagine a company called "GreenTech Innovations Ltd." which is a publicly traded company manufacturing eco-friendly technology products. At the end of the financial year, the Board of Directors must prepare and approve the company's financial statements. According to Section 134 of The Companies Act, 2013:

• The financial statements are approved by the Board and signed by the chairperson or two directors, along with the CEO, CFO, and company secretary, if appointed.
• The auditors' report is attached to these financial statements.
• The Board's report is prepared, which includes important information such as the number of Board meetings held during the year, the Directors Responsibility Statement, details of loans and investments, and the company's policy on director appointments and remuneration.
• The Board's report must also contain explanations for any qualifications or remarks made by the auditor.
• The Directors Responsibility Statement confirms that accounting standards were followed, adequate records were maintained, and internal financial controls were in place and operating effectively.
• Finally, the Board's report, along with the financial statements and auditor's report, is signed and circulated to the shareholders.

In case GreenTech Innovations Ltd. fails to comply with these requirements, the company and its officers face penalties as prescribed in the Act.