## Section 129 – Non-Compliance with AS, CG Powers & Penalty
### Where FS Does NOT Comply with AS
The company shall disclose in its FS:
1. The deviation from the AS
2. The reason(s) for such deviation
3. The financial implications arising out of the deviation
### CG Power to Exempt – Section 129(6)
The Central Government (CG) may, on its own or on application by a class of companies, by notification, exempt any class of companies from compliance with any of the requirements of Section 129 or the rules made thereunder, if considered necessary in public interest.
### Penalty for Contravention of Section 129
The following persons are responsible (officers-in-default):
| Officer |
|---|
| Managing Director (MD) |
| Whole-Time Director in charge of Finance (WTD-Finance) |
| Chief Financial Officer (CFO) |
| Any other person charged by the Board with the duty of compliance |
In the absence of any of the above officers, ALL directors of the company shall be liable.
### Punishment
- Imprisonment up to 1 year, OR
- Fine: ₹50,000 to ₹5,00,000, OR
- Both
### Quick Comparison
| Section | Punishment |
|---|---|
| 128 (Books of Account) | Fine only ₹50,000 – ₹5,00,000 |
| 129 (FS) | Imprisonment up to 1 yr OR Fine ₹50,000 – ₹5,00,000 OR Both |