Home Company Law - EditorialOther Editorials Can the Financial Statements be signed digitally?

Can the Financial Statements be signed digitally?

by CS Divesh Goyal
0 comment 159 views
Financial Statements

Short Summary:

Due to CoVID 19, it becomes difficult for Companies throughout the country to hold the physical Board Meeting. Therefore, many companies are holding their Board Meeting for the approval of the financial statement through Video Conferencing.

As many companies are holding Video Conferencing Board meetings and Directors are not available at the same place, It is difficult to get the financials signed by the Directors physically.

Now the question is, Can the Financial statements be signed digitally by the Directors?

Q1. Who can sign the Financial Statement?

As per Section 134(1), Financial Statement of the company can be signed by,

  • the chairperson of the company where he is authorized by the Board or
  • by two directors out of which one shall be the Managing Director if any, and
  • the Chief Executive Officer, the Chief Financial Officer and the
  • Company Secretary of the company, wherever they are appointed, or
  • in the case of a One Person Company, only by one director, for the submission to the Auditor for his report thereon.

The above-mentioned person can sign the Financial Statement of the company according to the management structure of the Company.

Q2. Can the financial statements be signed digitally?

Due to CoVID 19 situation, this is a very common question for the professionals and Corporates.

  • Digital Signature:

A digital signature is used to authenticate a document. As the digital equivalent of a handwritten signature or a stamped seal.

DSC can only be used for signing the documents. The most popular usage is signing the PDF files for Tax Returns, MCA, and other websites. Signing via DSC gives the assurance of not only the integrity of the signer but also the data. It is proof of untampered and unaltered data.

  • The signing of Financials:

As we have already discussed above, who can sign the financial statement of the Company?

As per Section 134, it is specifically mentioned that the Financial statement should be signed. However, there is nowhere mentioned that the Financial statement should be signed physically or digitally

Therefore, as per the meaning of the Digital signature and section 134, we can opine that the financial statements of the Company can be signed either physically or digitally.

In simple words, we can opine that the Financial Statements of the Companies can be signed through Digital signatures as well.

Conclusion:

Companies can get their Financial statements signed even with the Digital Signature of the Directors, CEO, CFO, CS, and the Statutory Auditors.


Follow us on the following platforms

  1. Youtube- https://www.youtube.com/channel/UCxg-RvIn-GdQ3ul6isI_c4w
  2. Facebook- https://www.facebook.com/divesh.goyalii.7
  3. Facebook group for updates and discussions on Corporate Law-https://www.facebook.com/groups/gyangurukul
  4. Vacancies through Google Form- http://www.csdiveshgoyal.info/2020/06/vacancy-updates-through-google-form.html
  5. Facebook group for CS vacancies for members and students- https://www.facebook.com/groups/csjobs2020/?post_id=589093692045210
  6. Link for receiving updates through mail: Fill this form to get regular updates-https://docs.google.com/forms/d/e/1FAIpQLScpQMjbei2vgi7l2_g9kcAOHIXYDPNNo3L2HqHhKuj2kk7PXw/viewform
  7. Instagram- https://www.instagram.com/cs_divesh_goyal/?hl=en
  8. Ping me on WhatsApp No. 8130657778 for joining Watsapp group for regular updates on Corporate Law.https://api.whatsapp.com/send?phone=918130657778text=welcome

Disclaimer: The entire contents of this document have been prepared based on relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, I assume no responsibility therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not professional advice and is subject to change without notice. I assume no responsibility for the consequences of use of such information.

IN NO EVENT SHALL I SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM, ARISING OUT OF OR IN CONNECTION WITH THE USE OF THE INFORMATION

You may also like

Leave a Comment