Revision of financial statement and audit report

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 December 2014 In a Private Limited company, Under what circumstances can one revise the financial statements after they are audited and AGM is also been held and they are submitted to some other stakeholders.

If not after AGM can one revise it if AGM is not yet held, however the due for AGM has passed.

Querist : Anonymous

Querist : Anonymous (Querist)

28 December 2014 Probable answer, plzz.. ssuggests improvement or additions.......

Section 131
Revision/Rectification in Financial statements

(1) If it appears to the directors of a company that (a) the financial statement of the company; or
(b) the report of the Board,

do not comply with the provisions of section 129 or section 134

they may prepare revised financial statement or a revised report in respect of any of the three preceding financial years

after obtaining approval of the Tribunal on an application made by the company in such form and manner as may be prescribed and

a copy of the order passed by the Tribunal shall be filed with the Registrar:

Provided that the Tribunal shall give notice to the Central Government and the Incometax authorities and shall take into consideration the representations, if any, made by that Government or the authorities before passing any order under this section:

Provided further that such revised financial statement or report shall not be prepared or filed more than once in a financial year:

Provided also that the detailed reasons for revision of such financial statement or report shall also be disclosed in the Board's report in the relevant financial year in which such revision is being made.

(2) Where copies of the previous financial statement or report have been sent out to members or delivered to the Registrar or laid before the company in general meeting, the revisions must be confined to
(a) the correction in respect of which the previous financial statement or report do not comply with the provisions of section 129 or section 134; and (b) the making of any necessary consequential alternation.

(3) The Central Government may make rules as to the application of the provisions of this Act in relation to revised financial statement or a revised director's report and such rules may, in particular (a) make different provisions according to which the previous financial statement or report are replaced or are supplemented by a document indicating the corrections to be made; (b) make provisions with respect to the functions of the company's auditor in relation to the revised financial statement or report; (c) require the directors to take such steps as may be prescribed.

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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22 July 2025 Your summary of Section 131 of the Companies Act, 2013 about revision of financial statements and audit reports is quite comprehensive! Here's an improved and polished version with some additions to clarify the practical implications and procedural aspects:

Revision of Financial Statements and Audit Report in a Private Limited Company
Legal Provision: Section 131, Companies Act 2013

Circumstances under which financial statements and audit reports can be revised:

If the directors discover that the financial statements or Board’s report do not comply with Sections 129 (Financial Statement) or 134 (Board’s Report) of the Companies Act, they may prepare revised financial statements or revised Board’s report for any of the three preceding financial years.
The revised financial statements or report can only be prepared after obtaining approval from the Tribunal on an application made by the company.
The Tribunal is required to:
Notify the Central Government and Income Tax authorities.
Consider any representations from these authorities before passing an order.
The company can prepare or file only one revised financial statement or report in a financial year.
The detailed reasons for the revision must be disclosed in the Board’s report for the year in which the revision is made.
Restrictions and Conditions:

If copies of the original financial statements or report have already been circulated to members, filed with the Registrar, or laid before a general meeting, the revisions are limited to:
Correcting non-compliance with Sections 129 or 134.
Making necessary consequential alterations arising out of these corrections.
If the AGM is not yet held but the due date has passed:

The company may revise the financial statements before the AGM is held, if errors or non-compliance are found.
However, once the AGM has been held and financial statements adopted, revision is possible only by following the Section 131 process through the Tribunal.
Role of Auditors in Revised Financial Statements:

The Central Government may prescribe rules for auditors’ involvement in such revisions, including:
Auditing the revised financial statements.
Reporting requirements.
Practical Summary:
Before AGM adoption: The company can revise the financial statements by Board approval and re-submit to members.
After AGM adoption: The revision is allowed only via Tribunal approval under Section 131.
The revision should only address compliance issues and corrections—not new transactions or events.
Full disclosure of the reason for revision is mandatory in the Board’s report.

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