Every Company irrespective of whether it’s a Private Company or Public Company has to comply annually by filing financial statements to ROC in form AOC-4 and MGT-7 (with necessary attachments attached) within six months of the end of the relevant financial year.
However, section 131 of Companies Act 2013 is introduced as a savior to such incidences where the Company has filed any wrong particulars or has furnished incorrect information in its annual return. Therefore, if the Company has filed the forms and SRN is generated and got approved, it now can be revised voluntarily under the provisions of this section.
As per Section 131 of Companies Act 2013 if it appears to the Directors of the Company at any time that the financial statement or board report doesn’t comply with the provisions of law or are prepared with some error or incorrect information that require correction can apply to Tribunal for its permission to revise the statements. The Company can file a revised statement not more than once in a financial year.
The Company, after the receipt of an order of Tribunal, can file a revised statement along with the copy of such order to ROC, provided that the Company can revise the financial statements of any of the preceding three financial years. The detailed reason for such revision shall be mentioned in the board’s report of such a relevant financial year in which revision is being filed.
Tribunal before passing any order in this regard shall give notice to Central Government or any Income Tax Authorities in case they have made a representation before Tribunal.
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Following are the steps that the Company has to follow for reopening or revising its financial statement:
Section 131 specifically provides that revision shall be restricted to the correction in previous year’s financial statement or board report that doesn’t comply the provisions of companies act in case the copies of previous financial statement have been delivered to the members of the Company, to ROC or has been laid before the Company in its General Meeting.
|Basis of Difference||Compulsory revision||Voluntary revision|
|Governing provision||It is regulated under section 130 of companies act 2013||It is governed under the provision of section 131 of companies act 2013|
|Petition filing||The central government, Income tax authority, SEBI, and such authorities can apply for revising the statements.||The Company through its representative such as practicing professionals can apply to the Tribunal for the revision of its statement.|
|Grounds for application||An application under this section can only be made if accounts are found to be fraudulent, misleading, or incorrect.||The Company can apply if the statements are not made or prepared as per the law.|
|Permissible revision||Books can be revised of up to 8 previous financial years.||Books cannot be revised for more than three preceding years.|
No such provision for filing revised statement prevailed earlier under Companies Act 1956. Companies and its principal officers are relieved now with the introduction of this provision in Companies Act 2013, as they are now permitted to file a revised statement.
For any further query concerning the revised statement or assistance relating to the complete procedure from applying Tribunal to filing a revised statement, you can contact us.
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