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Kmp disclosures in financial statement

17 October 2016

What is the consequences / liability / penalty for incorrect disclosure of KMP in the financial statement? Can you also share the relevant section/s of Companies Act?

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cs nidhi (job) (58 Points)
Replied 18 October 2016

Co. shall be punishable with fine which shall not be less than Rs. 50 thousand and can extent upto Rs. 25 Lakhs.

Every officer of the co. in default shall be liable with imprisonment for a term which may extent upto 3 years or with fine which shall not be less than Rs. 50 thousand but may extent to Rs. 5 lakhs or with both.

Sec 134 (8) of companies act 2013

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CA Kiran Sutrave (CA) (428 Points)
Replied 05 November 2016

Section 134(8) is applicable for Directors' Report / Board Report. In our case, the Directors' Report is correctly disclosing the related party transactions but the financial statements (more specifically Notes to Accounts) does not disclose the KMP. So in such case, is there any penalty?