# Financial Statements — Section 129 and Authentication
## 1. What Comprises Financial Statements?
Financial Statements include:
- Balance Sheet
- Profit and Loss Account (Income & Expenditure Account for non-profit companies)
- Cash Flow Statement
- Statement of Changes in Equity (if applicable)
- Any explanatory note annexed to the above
One Person Company, Small Company, Dormant Company, and Private Company (start-ups) may not be required to prepare a Cash Flow Statement.
## 2. Basic Requirements (Section 129(1))
Financial Statements must:
1. Give a true and fair view of the company's state of affairs.
2. Comply with Accounting Standards notified under Section 133.
3. Be in the form provided in Schedule III.
4. Otherwise be in accordance with Accounting Standards.
## 3. Central Government Exemption
The CG may, on its own or on application by any class of companies, exempt them from compliance with any requirement of Section 129 in the public interest.
## 4. Penalty for Non-Compliance with Section 129
- Imprisonment up to 1 year, OR
- Fine: Minimum ₹50,000, Maximum ₹5,00,000, OR
- Both.
## 5. Approval and Authentication of Financial Statements
Financial Statements must be approved by the Board of Directors before being signed and submitted to the auditor for the audit report.
Signing requirements — the FS shall be signed on behalf of the Board by:
- The Chairperson of the company (where authorised by the Board), OR
- By two directors, one of whom shall be the Managing Director (if any).
- Plus the CEO (if he is a director), the CFO, and the Company Secretary — wherever they are appointed.