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CMA Intermediate · Corporate Accounting and Auditing · Accounts of Banking, Electricity and Insurance Companies

A bank's accounts are furnished under section 31 of the Banking Regulation Act, 1949. The bank then sends the registrar copies and later also supplies RBI an additional statement on its accounts under section 27(2). Which set of documents sent to the registrar is correct under section 32?

The bank sends three copies of the accounts, balance-sheet and auditor's report under section 32(1), and also a copy of the additional statement supplied to the Reserve Bank under section 32(2). Both duties apply independently.

  1. AThree copies of accounts, balance-sheet and auditor's report, plus a copy of the additional statementCorrect
  2. BThree copies of accounts and balance-sheet only, and nothing for the additional statement
  3. COne copy of each document, plus a copy of the additional statement
  4. DThree copies of the additional statement only

Explanation

Section 32(1) needs three copies of the accounts, balance-sheet and auditor's report. Section 32(2) separately needs a copy of the additional statement supplied to the Reserve Bank. Omitting the auditor's report or the statement fails one of the two sub-sections.

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