CS did not sign half yearly financial statements

Others 1001 views 4 replies

Sumit Jaiswal

Company Secretary

818 Points Joined February 2011

A private limited company prepared a statement of accounts (including BS & PL) for the half year ended 30.09.2012. This was signed on 31.12.2012 by two directors and the auditors. This half yearly financials was prepared primarily for the purpose of submitting it to an authority while bidding for a tender.

The problem is that the CS of this company was appointed in the second week of Dec 2012 and the company did not get the balance sheet signed from him. As per my understanding, CS is also required to sign the balance sheet, even if it is half yearly.

Is there any non-compliance? Is the company required to consider the half yearly balance sheet in a board meeting (on 31.12.2012)? If not, I believe the non-compliance could be avoided by saying that the financial statements were prepared for a specific purpose; it was not considered in a board meeting, hence not signed by CS.

Replies (4)

Karthik Venkatram

Chartered Accountant

247 Points Joined December 2009

it wont amount to any non-compliance, by any means. Is it Audited or un-Audited ? It is only a 6 months b/s and hence there is no need to signed by all those charged woth governance. By the way, is the CS appointed u/s 383 A (u said it is a PVT CO)? What is the capital of the co?

Sumit Jaiswal

Company Secretary

818 Points Joined February 2011

Thanks for the reply Mr. Karthik.

Yes, the half yearly BS & PL are audited. Actually, I had a little doubt regarding Sec 215 of the Companies Act. Sec 215 uses the word 'every balance sheet and every profit and loss account'. Does the word 'every' covers half yearly financial statements also? Does it mean that CS should sign half yearly BS & Pl also? Yes CS was appointed u/s 383A. Paid up capital is little more than 5 crore.

Sneha

Company Secretary

1594 Points Joined December 2010

According to my perception, there is no non-compliance as the half yearly balance sheet was prepared for a specific purtpose and it was not for filing with any regulatory body.

Other views solicited

Dipjyoti Majumdar

CA in service & CS. dipmaj@

3488 Points Joined June 2011

Agreed with Sneha.

Sumit, just to add as the CS was appointed in second week of 12/2012 and the statements were signed by Directors on 31/12/2012, CS can sign also even though he was not employed in the company for that period ie till 09/12.

Regards,