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

According to Section 32 of the Banking Regulation Act, 1949 as reproduced, when a banking company furnishes its accounts and balance-sheet under section 31, what must it send to the registrar at the same time?

The company must send three copies of the accounts and balance-sheet and of the auditor's report to the registrar at the same time as it furnishes them under section 31. Doing so also removes the need to file them separately under the Companies Act provision.

  1. AThree copies of the accounts and balance-sheet and of the auditor's reportCorrect
  2. BOne copy of the accounts only
  3. CTwo copies of the balance-sheet only
  4. DThree copies of the auditor's report only

Explanation

Section 32(1) requires the banking company to send to the registrar, at the same time, three copies of the accounts and balance-sheet and of the auditor's report. Sending only some of these documents, or fewer copies, does not meet the requirement.

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