Section 131: Voluntary revision of financial statements or Board’s report
This section is for allowing companies to voluntarily revise their financial statements or Board's reports if they do not comply with the rules, with Tribunal approval and certain conditions.
The section, clause by clause
What the section says
In plain terms
(1)If it appears to the directors of a company that—
If a company's directors think the financial statement or Board's report does not comply with the rules, they can prepare a revised version for any of the last 3 financial years after getting Tribunal approval, and they must file a copy of the Tribunal's order with the Registrar and disclose the reasons for revision in the Board's report.
(1)(a)the financial statement of the company; or
(1)(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:
provisoProvided that the Tribunal shall give notice to the Central Government and the Income-tax authorities and shall take into consideration the representations, if any, made by that Government or the authorities before passing any order under this section:
provisoProvided further that such revised financial statement or report shall not be prepared or filed more than once in a financial year:
provisoProvided 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—
If the original financial statement or report has already been sent to members or the Registrar, the revisions can only correct the non-compliance and make necessary changes.
(2)(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
(2)(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—
The Central Government can make rules about how this Act applies to revised financial statements or reports, including how the original is replaced or supplemented, the auditor's role, and the steps directors must take.
(3)(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;
(3)(b)make provisions with respect to the functions of the company's auditor in relation to the revised financial statement or report;
(3)(c)require the directors to take such steps as may be prescribed.
The right-hand column is written from the section text, not quoted from it, and it has no legal force. Where the two differ, the left-hand column is the law.
Amendment notes
- 1. Ins. by Act 1 of 2018, s. 34 (w.e.f. 9-2-2018).
- 2. Ins. by s. 34, ibid. (w.e.f. 9-2-2018).
- 1. Ins. by Act 22 of 2019, s. 20 (w.e.f. 15-8-2019).
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Reproduced from the official India Code print for reference. Check the current text on India Code before you rely on it, and read the section alongside its Rules. Nothing here is legal advice.