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Signing of balance sheet

divya (Executive) (35 Points)

29 April 2016

What are the alternative available if, the CFO or CS of the Company is unavailable at the time of signing of Balance Sheet as it is compulsory to get the Balance sheet signed by the CFO or CS (If appointed). Our Company is a Listed Company.

Please reply as early as possible.

Thanks & Regards

Divya

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22 Replies

CA Shree Jain (Chartered Accountant) (1572 Points)
Replied 29 April 2016

As per section 143 of the companies Act,2013 the financial statements shall be signed by

1.Chairperson of the company if authorised by the board or

2. By two directors out of which one shall be the MD and CEO, CFO and CS wherever they are appointed.

3. However, in the case of one person company, only by one director.

1 Like

divya (Executive) (35 Points)
Replied 29 April 2016

Ca Ash Jain, I am Thankful for your reply but my query is that our CFO is not available at the time of signing of Balance sheet so what shall we do in this case?

CA Shree Jain (Chartered Accountant) (1572 Points)
Replied 29 April 2016

MD IS AVAILABLE ?

divya (Executive) (35 Points)
Replied 29 April 2016

Yes MD is available, everyone apart from CFO are availble. But, as CFO is appointed so it is a mandatory requirment of getting it signed by CFO.

RISHI (cs) (227 Points)
Replied 29 April 2016

There is nothing such in section 143.

Jatin Bajaj (CS) (2928 Points)
Replied 30 April 2016

According to SECTION 134(1), fINANCIAL STATEMENT INCLUDING CONSOLIDATED FINANCIAL STATEMENT , IF ANY SHALL BE SIGNED BY THE TWO DIRECTORS OF THE COMPANY OUT OF WHICH ONE SHOULD BE MD.

SECONDALY BY CEO OF COMPANY IF HE DIRECTOR OF THE COMPANY

THIRDLY BY CFO & CS OF THE COMPANY WHEREVER THEY ARE APPOINTED.

divya (Executive) (35 Points)
Replied 30 April 2016

Originally posted by : Jatin Bajaj
	According to SECTION 134(1), fINANCIAL STATEMENT INCLUDING CONSOLIDATED FINANCIAL STATEMENT , IF ANY SHALL BE SIGNED BY THE TWO DIRECTORS OF THE COMPANY OUT OF WHICH ONE SHOULD BE MD. SECONDALY BY CEO OF COMPANY IF HE DIRECTOR OF THE COMPANY THIRDLY BY CFO & CS OF THE COMPANY WHEREVER THEY ARE APPOINTED.

Is section 134 said to be complied if the CFO of the Company doesnot sign the balancesheet?

CS Arjun Rajagopal (B.com, ACS) (1056 Points)
Replied 30 April 2016

Originally posted by : divya
	What are the alternative available if, the CFO or CS of the Company is unavailable at the time of signing of Balance Sheet as it is compulsory to get the Balance sheet signed by the CFO or CS (If appointed). Our Company is a Listed Company. Please reply as early as possible. Thanks & Regards Divya

In your case since CS and CFO are appointed. It is complulsory required to get the financial statements signed by them as per sec 134(1). No compliance of this section may attract penalty for company - Rs. 50,000-25,00,000 and for every officer in default imprisonment - 3 years or fine - 50,000-5,00,000 or with both. So dont try to search for any other alternative. Comply with provisions and avoid hefty penalties in future.

RISHI (cs) (227 Points)
Replied 30 April 2016

where is CFO? Is he not available in India? or he does not want to sign BS. If possible take his resignation before balance sheet date and appoint somebody else as CFO who is ready to sign BSPL.

divya (Executive) (35 Points)
Replied 02 May 2016

Originally posted by : RISHI
	where is CFO? Is he not available in India? or he does not want to sign BS. If possible take his resignation before balance sheet date and appoint somebody else as CFO who is ready to sign BSPL.

Thanks for your valuable suggestion.

He is not available in India during the approval and signing of Balance Sheet. He doesnot have any problem in signing the balance sheet but since he is not available so he cannot sign the balance sheet on the date its being approved and adopted by the Board.

divya (Executive) (35 Points)
Replied 02 May 2016

Originally posted by : Arjun Rajagopal
	Originally posted by : divya What are the alternative available if, the CFO or CS of the Company is unavailable at the time of signing of Balance Sheet as it is compulsory to get the Balance sheet signed by the CFO or CS (If appointed). Our Company is a Listed Company. Please reply as early as possible. Thanks & Regards Divya In your case since CS and CFO are appointed. It is complulsory required to get the financial statements signed by them as per sec 134(1). No compliance of this section may attract penalty for company - Rs. 50,000-25,00,000 and for every officer in default imprisonment - 3 years or fine - 50,000-5,00,000 or with both. So dont try to search for any other alternative. Comply with provisions and avoid hefty penalties in future.

Thanks for your help. We are looking for an alternative because he is unavailable on the date of signing of Balance Sheet and alternate includes signing of Balance Sheet later on or any other way out. We donot intended to escape the responsibility but want to find out if there is any exemption or any other way out to solve our problem.

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 02 May 2016

1) Sec.134(1) requires Balance Sheet to be mandatorily signed by CFO, if appointed.

2) Sec.134 does not require that CFO must be present on the date of Board approval. It just provides that Balance Sheet must be approved by the Board before signing.

3) Two directors and CS can sign on the date and place of Board approval. CFO can sign subsequently and put different date and place of signing.

1 Like

RISHI (cs) (227 Points)
Replied 02 May 2016

I think Sir has provided the right solution.

1 Like

divya (Executive) (35 Points)
Replied 02 May 2016

Mr. P C Agarwal and Mr. Rishi Thanks for your valauble time and suggestions.

But the problem is our Financial Statements are approved and accepted in the same meeting which can not be done if the CFO of the Company signs the Statements later on. And conducting another BM is not possible as Directors are not available later on. I will be really greatful if you could provide some alternative.

Thanking You.

Regards

Divya