## Section 129 – Financial Statements (FS)

### Core Requirements

1. True and Fair View: FS shall give a true and fair view of the state of affairs of the company.

2. Accounting Standards: FS shall comply with the Accounting Standards (AS) notified under Section 133.

3. Form: FS shall be in the form(s) prescribed in Schedule III.

### Board's Duty

The Board of Directors (BOD) shall lay such FS before the company at every Annual General Meeting (AGM).

### Section 129(1) – Non-Applicability

The provisions relating to form (Schedule III) in Section 129(1) do NOT apply to:

Insurance Companies
Banking Companies
Electricity Companies
Any other class of company for which a form of financial statement has been specified under the Act governing such company (Special Act companies)

> These entities follow the FS format prescribed by their respective governing legislation.

### Snapshot

Aspect	Requirement
View	True and Fair
AS	Section 133
Form	Schedule III
Laying	At every AGM by BOD
Exempt entities	Insurance / Banking / Electricity / Special Act Cos.

Worked example

### Example 1

Q: A banking company prepares its FS using the format under the Banking Regulation Act, 1949 rather than Schedule III. Is this permissible?

A: Yes. Section 129(1) expressly excludes banking companies from the requirement of using Schedule III format. They follow the form prescribed under their special Act.

⚠️ Common exam mistakes

Assuming Schedule III format is mandatory for ALL companies – it is not applicable to insurance, banking, electricity, and special Act companies.
Forgetting that 'true and fair view' and 'compliance with AS' apply universally even though the form may differ.
Confusing Section 129 (FS contents) with Section 128 (books of account).

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

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 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.

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Section 129 – Financial Statements: Form, Content & Applicability

Worked example

⚠️ Common exam mistakes