Section 215

Pvt ltd 1302 views 7 replies

khushboo

234 Points Joined February 2009

Dear professional friends

i have a query

as per section 215

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

(ii) in the case of any other company, by its ¹[* * *] 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 sub-section (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.

My Question is that

Balance sheet and profit & Loss is made upto 31/03/2010

while a Manager or Secretary is appointed in April or May..

In that situation does they have to sign Balance sheet and Profit & Loss A/c ????

Plz guide on the same ......

Replies (7)

Manmohan ACA, CS

Chartered Accountant

14243 Points Joined February 2009

YES. hey have to sign Balance sheet and Profit & Loss A/c , as accounts are prepared after their appointment, and they have to certify the same and need not to be present during the period for which accounts are prepared

HARDIK

COMPANY SECRETARY NCFM (Corporate Gover

664 Points Joined October 2008

yes can sign since balance sheet is sign in BM which is held 21 days before the meeting and appointement is made in april or may so he can sign.

Ajay Mishra

Company Secretary

74352 Points Joined March 2009

Yes, if manager or secretary is available at the time of signing of balance sheet he/she will sign the same for the financial year ending 2010.

Regards

Jagruti (CS)

Service

1953 Points Joined May 2008

Any person appointed as Director , Manager or Secretary on or before the Board Meeting in which acoc*nts are adopted and signed, such person is eligible to sign the Accounts of the Company

Mohammed Shariq

Chartered Accountant

51 Points Joined December 2009

bahut lamba questtion hai yar pls try to make short???

CA Final

CA Final Student

856 Points Joined July 2009

Ya very long................

CS Ankur Srivastava

Company Secretary & Compliance Officer

17858 Points Joined November 2008

Originally posted by : khushboo
	Dear professional friends i have a query as per section 215 (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 banking company, by the persons specified in clause (a) or clause (b), as the case may be, of sub-section (2) of section 29 of the Banking Companies Act, 1949 (10 of 1949); (ii) in the case of any other company, by its 1[* * *] 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 sub-section (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. My Question is that Balance sheet and profit & Loss is made upto 31/03/2010 while a Manager or Secretary is appointed in April or May.. In that situation does they have to sign Balance sheet and Profit & Loss A/c ???? Plz guide on the same ......

Dear Khushbu,

31/03/2010 is the closing period of Balance Sheet (i.e. 1/04/2009 to 31/03/2010), but it is required to be signed on the date of board meeting in which it is approved and this date is also mentioned on the balance sheet.

Therefore, the manager or secretary, if any, appointed on or before the date of that Board Meeting, they have to sign on the Balance Sheet, irrespective of the fact, they were appointed after 31/03/2010.

However, in case they were aqppointed after Board Meeting and approval of B/s, they cannot sign the B/S.