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Section 130: Re-opening of Accounts on Court’s or Tribunal’s Orders(1) A company shall not re-open its books of account and not recast its financial statements, unless an application in this regard is made by the Central Government, the Income-tax authorities, the Securities and Exchange Board, any other statutory regulatory body or authority or any person concerned and an order is made by a court of competent jurisdiction or the Tribunal to the effect that— (i) the relevant earlier accounts were prepared in a fraudulent manner; or (ii) the affairs of the company were mismanaged during the relevant period, casting a doubt on the reliability of financial statements: Provided that the court or the Tribunal, as the case may be, shall give notice to the Central Government, the Income-tax authorities, the Securities and Exchange Board or any other statutory regulatory body or authority concerned 1[or any other person concerned] and shall take into consideration the representations, if any, made by that Government or the authorities, Securities and Exchange Board or the body or authority concerned 1[or the other person concerned] before passing any order under this section. (2) Without prejudice to the provisions contained in this Act the accounts so revised or re-cast under sub-section (1) shall be final.
Amendments1. Inserted by The Companies (Amendment) Act, 2017 . ;- Amendment effective from 9th february 2018 |
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Section 131: Voluntary Revision of Financial Statements or Board’s Report(1) If it appears to the directors of a company that—
(a) the financial statement of the company; or
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: Provided that the Tribunal shall give notice to the Central Government and the Incometax authorities and shall take into consideration the representations, if any, made by that Government or the authorities before passing any order under this section: Provided further that such revised financial statement or report shall not be prepared or filed more than once in a financial year: Provided 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—
(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
(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—
(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;
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Section 132: Constitution of National Financial Reporting .(1) The Central Government may, by notification, constitute a National Financial Reporting Authority to provide for matters relating to accounting and auditing standards under this Act.
(2) Notwithstanding anything contained in any other law for
the time being in force, the National Financial Reporting
Authority shall—
*(3) The National Financial Reporting Authority shall consist of a chairperson, who shall be a person of eminence and having expertise in accountancy, auditing, finance or law to be appointed by the Central Government and such other members not exceeding fifteen consisting of part-time and full-time members as may be prescribed: Provided that the terms and conditions and the manner of appointment of the chairperson and members shall be such as may be prescribed: Provided further that the chairperson and members shall make a declaration to the Central Government in the prescribed form regarding no conflict of interest or lack of independence in respect of his or their appointment: Provided also that the chairperson and members, who are in full-time employment with National Financial Reporting Authority shall not be associated with any audit firm (including related consultancy firms) during the course of their appointment and two years after ceasing to hold such appointment. *** (4) Notwithstanding anything contained in any other law for the time being in force, the National Financial Reporting Authority shall— (a) have the power to investigate, either suo motu or on a reference made to it by the Central Government, for such class of bodies corporate or persons, in such manner as may be prescribed into the matters of professional or other misconduct committed by any member or firm of chartered accountants, registered under the Chartered Accountants Act, 1949: Provided that no other institute or body shall initiate or continue any proceedings in such matters of misconduct where the National Financial Reporting Authority has initiated an investigation under this section;
(b) have the same powers as are vested in a civil court
under the Code of Civil Procedure, 1908, while trying a
suit, in respect of the following matters, namely:—
(c) where professional or other misconduct is proved, have the power to make order for—
(A) imposing penalty of—
(B) debarring the member or the firm from engaging himself or itself from practice as member of the Institute of Chartered Accountant of India referred to in clause (e) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949 for a minimum period of six months or for such higher period not exceeding ten years as may be decided by the National Financial Reporting Authority. Explanation.—For the purposes of his sub-section, the expression "professional or other misconduct" shall have the same meaning assigned to it under section 22 of the Chartered Accountants Act, 1949. (5) Any person aggrieved by any order of the National Financial Reporting Authority issued under clause (c) of sub-section (4), may prefer an appeal before 2 [the Appellate Tribunal in such manner and on payment of such fee as may be prescribed] 10) The National Financial Reporting Authority shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings in such manner as may be prescribed. (11) The Central Government may appoint a secretary and such other employees as it may consider necessary for the efficient performance of functions by the National Financial Reporting Authority under this Act and the terms and conditions of service of the secretary and employees shall be such as may be prescribed. (12) The head office of the National Financial Reporting Authority shall be at New Delhi and the National Financial Reporting Authority may, meet at such other places in India as it deems fit. (13) The National Financial Reporting Authority shall cause to be maintained such books of account and other books in relation to its accounts in such form and in such manner as the Central Government may, in consultation with the Comptroller and Auditor-General of India prescribe. (14) The accounts of the National Financial Reporting Authority shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and such accounts as certified by the Comptroller and Auditor-General of India together with the audit report thereon shall be forwarded annually to the Central Government by the National Financial Reporting Authority. (15) The National Financial Reporting Authority shall prepare in such form and at such time for each financial year as may be prescribed its annual report giving a full account of its activities during the financial year and forward a copy thereof to the Central Government and the Central Government shall cause the annual report and the audit report given by the Comptroller and Auditor-General of India to be laid before each House of Parliament.
Amendments1. Substituted by the Companies Amendment Act 2017 :- Amendment effective from 9th february 2018 In section 132, in sub-section (4), clause (c), in sub-clause (A), in item (II), for the words:- "ten lakh rupees" the following words shall be substituted, namely :- "five lakh rupees" 2. Substituted by the Companies Amendment Act 2017 :- Amendment effective from 9th february 2018 In section 132,in sub-section (5), for the words:- "the Appellate Authority constituted under sub-section (6) in such manner as may be prescribed" the following words shall be substituted, namely :- "the Appellate Tribunal in such manner and on payment of such fee as may be prescribed" 3. Ommited by The Companies (Amendment) Act, 2017 :- Amendment effective from 9th february 2018 Notes Sub Section (3) and (11) have been notified on 21st March 2018. Sub-sections (1) and (12) have been notified on 1st October 2018 Sub Section (2),(4),(5),(10),(13),(14) and (15) have been notified on 24th October 2018 |
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1. Clarification related to Schedule VII -Dated 18.06.2014. (Point (iv) has been Omitted - Refer Clarification Dated-17.09.2014) 2. Clarification related to above Clarifiaction Dated-17.09.2014 . 3. Clarification with regard to provisions under section 135 (5) of the Companies Act, 2013 .
Exceptions/Modifications/Adaptations1. In case of Specified IFSC Public Company - Section 135 shall not apply for a period of five years from the commencement of business of a Specified IFSC public company - Notification Dated 4th January, 2017. 2. In case of Specified IFSC Private Company - Section 135 shall not apply for a period of five years from the commencement of business of a Specified IFSC private company - Notification Dated 4th January, 2017
Amendments3. Substituted by the Companies Amendment Act 2017 Amendment Effective from 19.09.2018 In section 135,in sub-section (1) for the words:- "any financial year" the following words shall be substituted namely:- "the immediately preceding financial year" 4. Inserted by The Companies (Amendment) Act, 2017 . Amendment Effective from 19.09.2018 5. Substituted by the Companies Amendment Act 2017 Amendment Effective from 19.09.2018 In section 135, in sub-section (3), in clause (a), for the words:- as specified in 1 , 2 Schedule VII ; the following words shall be substituted namely:- "in areas or subject, specified in Schedule VII" 6. Substituted by the Companies Amendment Act 2017 Amendment Effective from 19.09.2018 In section 135, in sub-section (5), for the Explanation: Explanation.—For the purposes of this section “average net profit” shall be calculated in accordance with the provisions of section 198. the following Explanation shall be substituted namely:- 'Explanation.—For the purposes of this section "net profit" shall not include such sums as may be prescribed, and shall be calculated in accordance with the provisions of section 198.'. |
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