# Board's Report — Key Requirements (Section 134)
## 1. Attachment to FS
To the Financial Statements laid before the company in General Meeting, a Report by the Board of Directors shall be attached. It must be:
- Duly signed
- Contain prescribed contents (including disclosures listed in Sec. 134(3))
- Include a Director's Responsibility Statement
## 2. Abridged Board's Report
The Central Government has prescribed an Abridged Board's Report for the purpose of Section 134 in respect of:
- One Person Companies (OPC), and
- Small Companies.
This reduces the compliance burden on micro-entities.
## 3. Penalty for Default (Sec. 134)
| Party | Penalty |
|---|---|
| Company | Fine: Min ₹50,000, Max ₹25,00,000 |
| Every Officer in Default | Imprisonment up to 3 years, OR Fine: Min ₹50,000, Max ₹5,00,000, OR Both |
## 4. Director's Responsibility Statement — Why It Matters
A mandatory part of the Board's Report. By signing it, directors personally confirm — inter alia — that applicable accounting standards have been followed, that they have selected appropriate accounting policies, that proper internal financial controls were in place, and that they have prepared the accounts on a going concern basis.