law: Companies Act, 2013 
  129.
  
    Financial
  
  statement.
  1.      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 contained 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:
  Provided
  
  also that the financial statements shall not be treated as not disclosing a
  
  true and fair view of the state of affairs of the company, merely by reason of
  
  the fact that they do not disclose—-
  a.     
  
    in
  
  the case of an insurance company, any matters which are not required to be
  
  disclosed by the Insurance Act, 1938, or the Insurance Regulatory and
  
  Development Authority Act, 1999;
  b.    
  
    in
  
  the case of a banking company, any matters which are not required to be
  
  disclosed by the Banking Regulation Act, 1949;
  c.     
  
    in
  
  the case of a company engaged in the generation or supply of electricity, any
  
  matters which are not required to be disclosed by the Electricity Act, 2003;
  d.    
  
    in
  
  the case of a company governed by any other law for the time being in force,
  
  any matters which are not required to be disclosed by that law.
  1.     
  2.      At every annual
  
  general meeting of a company, the Board of Directors of the company shall lay
  
  before such meeting financial statements for the financial year.
  3.      Where a company has
  
  one or more subsidiaries, it shall, in addition to financial statements
  
  provided under sub-section (2 ), prepare a consolidated financial
  
  statement of the company and of all the subsidiaries in the same form and
  
  manner as that of its own which shall also be laid before the annual general
  
  meeting of the company along with the laying of its financial statement under
  
  sub-section (2 ):
  Provided
  
  that the company shall also attach along with its financial statement, a
  
  separate statement containing the salient features of the financial statement
  
  of its subsidiary or subsidiaries in such form as may be prescribed:
  Provided
  
  further that the Central Government may provide for the consolidation of
  
  accounts of companies in such manner as may be prescribed.
  Explanation.— For the purposes of
  
  this sub-section, the word “subsidiary” shall include associate company and
  
  joint venture.
  1.     
  2.     
  3.     
  4.      The provisions of
  
  this Act applicable to the preparation, adoption and audit of the financial
  
  statements of a holding company shall, mutatis mutandis, apply to the
  
  consolidated financial statements referred to in sub-section (3 ).
  5.      Without prejudice to
  
  sub-section (1 ), where the financial statements of a company do not
  
  comply with the accounting standards referred to in sub-section (1 ), the
  
  company shall disclose in its financial statements, the deviation from the
  
  accounting standards, the reasons for such deviation and the financial effects,
  
  if any, arising out of such deviation.
  6.      The Central
  
  Government may, on its own or on an application by a class or classes of
  
  companies, by notification, exempt any class or classes of companies from
  
  complying with any of the requirements of this section or the rules made there
  
  under, if it is considered necessary to grant such exemption in the public
  
  interest and any such exemption may be granted either unconditionally or
  
  subject to such conditions as may be specified in the notification.
  7.      If a company
  
  contravenes the provisions of this section, the managing director, the
  
  whole-time director in charge of finance, the Chief Financial Officer or any
  
  other person charged by the Board with the duty of complying with the
  
  requirements of this section and in the absence of any of the officers
  
  mentioned above, all the directors shall be punishable with imprisonment for a
  
  term which may extend to one year or with fine which shall not be less than
  
  fifty thousand rupees but which may extend to five lakh rupees, or with both.
  Explanation .—For the purposes of
  
  this section, except where the context otherwise requires, any reference to the
  
  financial statement shall include any notes annexed to or forming part of such
  
  financial statement, giving information required to be given and allowed to be
  
  given in the form of such notes under this Act.