LIVE GST Audit Course by CA Sachin Jain. Register Now!!

please reply yaar its really urgent

yatish kotiyan (Articled Clerk) (372 Points)

03 September 2009

Who is elegible to sign audited financial statements of a company other than a charetered accountant??

in this case the company has 2 directors another query whether they both should sign or any one of them can sign????

please reply ASAP

Reply
Follow
Share

7 Replies

(Guest)

Refer Section 215 of companies act..it goes like this every b/s n PL of a company shall be signed on behalf of the BoD by:

1. The manager or secretary if any And

2. not less than 2 directors one of whom shall be the managing director,where there is one

yatish kotiyan (Articled Clerk) (372 Points)
Replied 03 September 2009

Originally posted by :Mohan Dagha
"	Refer Section 215 of companies act..it goes like this every b/s n PL of a company shall be signed on behalf of the BoD by: 1. The manager or secretary if any And 2. not less than 2 directors one of whom shall be the managing director,where there is one	"

thanks for replying but i could nt find the section properly..

please send some more info about this section here only...

thanks a lot

(Guest)

215. Authentication of balance sheet and profit and loss account.

(1) Save as provided by sub-section (2), every balance sheet and every profit and loss account of a company shall be signed on behalf of the Board of directors –

(i) in the case of a banking company, by the persons specified in clause (a) or clause (b), as the case may be, of subsection (2) of section 29 of the Banking Companies Act, 1949; (10 of 1949).

(ii) in the case of any other company, by its, managing agent, secretaries and treasurers, manager or secretary, if any, and by not less than two directors of the company one of whom shall be a managing director where there is one.

(2) In the case of a company not being a banking company, when only one of its directors is for the time being in India, the balance sheet and the profit and loss account shall be signed by such director; but in such a case there shall be attached to the balance sheet and the profit and loss account a statement signed by him explaining the reason for non-compliance with the provisions of subsection (1).

(3) The balance sheet and the profit and loss account shall be approved by the Board of directors before they are signed on behalf of the Board in accordance with the provisions of this section and before they are submitted to the auditors for their report thereon.

yatish kotiyan (Articled Clerk) (372 Points)
Replied 03 September 2009

please explain this line

in the case of any other company, by its, managing agent, secretaries and treasurers, manager or secretary, if any, and by not less than two directors of the company one of whom shall be a managing director where there is one

(Guest)

For example there are three directors A.,B,C where C is also the managing director of the company..and the company has also appointed a secretary but no manager is there, than the accounts should be signed by

1. the secretary

2. the manading director C

3. either A or B

So it is signed by secretary and not less than 2 directors i.e either A or B and C,where one is Managing director i.e C, if there was no C than it sud have been signed by both A and B

CA Hemant Kumar (CA, LLB (p), B.Com) (204 Points)
Replied 03 September 2009

only chartered accountant(auditor) can sign the audited financial statement

and (by the company personnel) the report should be signed by MD if any and other two directors

therfore here both directors have to sign

yatish kotiyan (Articled Clerk) (372 Points)
Replied 05 September 2009

Originally posted by :Hemant Kumar
"	only chartered accountant(auditor) can sign the audited financial statement and (by the company personnel) the report should be signed by MD if any and other two directors therfore here both directors have to sign	"