Launch offer — 25% off with code LAUNCH-25 See plans →
Microlesson · 5-min read

Voluntary Revision of Financial Statements or Board's Report (Section 131)

# Voluntary Revision of Financial Statements or Board's Report (Section 131)

## Core Concept

Section 131 of the Companies Act, 2013 allows directors to voluntarily revise the Financial Statements (FS) or Board's Report of the company in situations where they believe non-compliance has occurred.

## When Can Revision Be Made?

If it appears to the directors of the company that:

  • The Financial Statements are NOT in compliance with Section 129 (Form & contents of FS), OR
  • The Board's Report is NOT in compliance with Section 134

## Procedure for Revision

StepAction
1Directors form the opinion that FS / Board's Report is non-compliant
2Make application to National Company Law Tribunal (NCLT) for approval
3On approval and order of Tribunal, the company prepares revised FS OR revises the Board's Report
4A copy of the order of the Tribunal along with the revised FS / Board's Report is filed with the Registrar

## Key Limitations

  • Revision can be made for any of the 3 preceding financial years only — not beyond.
  • Revision can be done only once in a financial year.
  • The revision must relate to the specific non-compliance identified.

## Quick Diagram

```

Directors find FS / Board Report

not compliant with Sec 129 / 134

Apply to Tribunal (NCLT) for approval

On Tribunal's order → Prepare revised FS / revised Board Report (any 3 preceding FY)

File copy of Tribunal order + Revised FS/Report with Registrar

```

Worked example

### Example 1

Example 1: ABC Ltd's directors realize in FY 2024-25 that the Board's Report for FY 2022-23 did not contain the Directors' Responsibility Statement as required under Section 134. The company may apply to NCLT under Section 131 to voluntarily revise the Board's Report for FY 2022-23, since it falls within the three preceding financial years.

### Example 2

Example 2: XYZ Ltd's FS for FY 2020-21 are discovered in FY 2025-26 to have improperly classified certain reserves. Since FY 2020-21 is beyond the 3 preceding financial years (2022-23, 2023-24, 2024-25), revision under Section 131 is NOT permissible.

⚠️ Common exam mistakes

  • Confusing the time limit — revision is allowed only for any of the 3 PRECEDING financial years, not the current FY.
  • Forgetting that NCLT approval is mandatory before revision; directors cannot unilaterally revise FS or Board's Report.
  • Assuming both FS and Board's Report can be revised multiple times in the same year — only one revision per FY is permitted.
  • Treating Section 131 as covering rectification of arithmetical errors only; in fact, it deals with non-compliance with Section 129 or 134.
Bare-Act text Section 131 · Companies Act, 2013 · click to expand
If it appears to the directors of a company that— (a) the financial statement of the company; or (b) the report of the Board, do not comply with the provisions of section 129 or section 134, they may prepare revised financial statement or a revised report in respect of any of the three preceding financial years after obtaining approval of the Tribunal on an application made by the company in such form and manner as may be prescribed.
Now that you've read this — what's next?
Move from understanding → mastery in 3 clicks. Each option below picks up from this lesson's topic.
Start 15-min diagnostic