## Section 129(1) — Form & Content of Financial Statements

The Financial Statements (FS) of a company shall:

1. Give a true and fair view of the state of affairs of the company;

2. Comply with the Accounting Standards notified under Section 133; and

3. Be in the form as may be provided for different classes of companies in Schedule III.

### Non-applicability of Sec. 129(1)

Sec. 129(1) shall NOT apply to the following companies (they prepare FS in the form prescribed by their respective governing Act):

Insurance Company — IRDA Act / Insurance Act
Banking Company — Banking Regulation Act, 1949
Electricity Company — Electricity Act, 2003
Any company governed by any other special Act

## Section 129(2) — Laying of FS in AGM

At every Annual General Meeting (AGM), the Board of Directors shall lay before the company such financial statements for the financial year.

Worked example

### Example 1

Q. State Bank of India prepares its FS in the form prescribed under the Banking Regulation Act, 1949 rather than Schedule III. Is this a contravention of Sec. 129(1)?

A. No. The first proviso to Sec. 129(1) exempts banking companies from the form requirement — they follow the form under their special statute.

⚠️ Common exam mistakes

Forgetting the proviso — students often state Schedule III applies to every company, ignoring the carve-out for banking, insurance, electricity and special-Act companies.
Saying FS must be laid in every general meeting — FS are laid only in the Annual General Meeting.

Bare-Act text Sec. 129(1) & 129(2) · Companies Act, 2013 · click to expand

Section 129(1): The financial statements shall give a true and fair view of the state of affairs of the company or companies, comply with the accounting standards notified under section 133 and shall be in the form or forms as may be provided for different class or classes of companies in Schedule III: Provided that the items contained in such financial statements shall be in accordance with the accounting standards: Provided further that nothing contained in this sub-section shall apply to any insurance or banking company or any company engaged in the generation or supply of electricity, or to any other class of company for which a form of financial statement has been specified in or under the Act governing such class of company. Section 129(2): At every annual general meeting of a company, the Board of Directors of the company shall lay before such meeting financial statements for the financial year.

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Financial Statements — Form, Content & Laying [Sec. 129(1) & (2)]

Worked example

⚠️ Common exam mistakes