SECTION 129 FINANCIAL STATEMENT
This Section seeks to provide that the financial statements shall give a true and fair view of the state of affairs of the companies in the form as provided for different class or classes in Schedule III and shall comply with accounting standards. Insurance companies, banking company, companies engaged in generation / supply of electricity or any other class of companies shall make financial statements in the form as has been specified in or under the Act governing such companies.
Definition of Financial Statement
Financial Statement is defined under Section 2 (40), to include -
• Balance Sheet
• Profit and Loss account or Income and Expenditure account
• Cash flow Statement
• Statement of change in equity, if applicable
• any explanatory notes annexed to or forming part of financial statements, giving information required to be given and allowed to be given in the form of notes.
However, the financial statement with respect to one person company, small company and dormant company, may not include the cash flow statement. Financial statements should be prepared for financial year and shall be in form as per Schedule III.