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CA Intermediate · Corporate and Other Laws · Companies Incorporated Outside India

Borealis Energy Corp., a foreign company with a place of business in Gujarat, has not yet filed its annual accounts with the Registrar. Which statement correctly states its obligation under the Companies Act, 2013?

A foreign company with an Indian place of business must prepare its balance sheet and profit and loss account every calendar year and deliver copies to the Registrar with the prescribed documents. The duty does not depend on turnover comparisons and is owed to the Registrar, not SEBI.

  1. AIt need file no accounts since it is not an Indian company
  2. BIt must prepare and deliver to the Registrar, every calendar year, copies of its balance sheet and profit and loss account and the prescribed documents, as required of foreign companiesCorrect
  3. CIt must file accounts only if its Indian turnover exceeds its foreign turnover
  4. DIt must file accounts with SEBI instead of the Registrar

Explanation

Every foreign company must, in every calendar year, make out a balance sheet and profit and loss account in the prescribed form and deliver copies to the Registrar, along with a list of Indian places of business, as the Act requires. There is no turnover-comparison condition, and the filing is with the Registrar, not SEBI.

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