The Board of Directors of Nova Communications Ltd. consists of Mr. Mehra and Ms. Singh (Directors) and Mr. Verma (Managing Director). The company…

According to section 134 (1) of the Companies Act, 2013, the financial statement, including consolidated financial statement, if any, shall be approved by the Board of Directors before they are signed on behalf of the Board by the chairperson of the company where he is authorised by the Board or by two directors out of which one shall be 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 One Person Company, only by one director, for submission to the auditor for his report thereon. In the instant case, the Balance Sheet and Profit and Loss Account have been signed only by Mr. Mehra and Ms. Singh, the directors. In view of section 134 (1) of the Companies Act, 2013, Mr. Verma, the Managing Director should have been one of the two signing directors. Further, since the company has also employed a full- time Secretary, he should also sign the Balance Sheet and the Statement of Profit and Loss.