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

Brightwave Media Ltd., a foreign company with a place of business in Mumbai, wants to know about its annual compliance. Which statement reflects the correct legal position under the Companies Act, 2013?

Brightwave Media Ltd. must every calendar year prepare its balance sheet, profit and loss account and other prescribed documents as required of a company under the Act, and deliver copies to the Registrar. There is no turnover threshold, and compliance with home-country law or RBI does not substitute for it.

  1. AIt need not prepare financial statements in India since its parent country laws govern it entirely
  2. BIt must prepare a balance sheet and profit and loss account in the prescribed form and deliver copies to the Registrar each yearCorrect
  3. CIt must file accounts only if its Indian business turnover exceeds Rs 100 crore
  4. DIt must file accounts only with the RBI and not with the Registrar

Explanation

Every foreign company must, every calendar year, make out a balance sheet, profit and loss account and other documents as prescribed for a company under the Act, and deliver copies to the Registrar. No turnover threshold exempts it, and filing with RBI does not replace this obligation.

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