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CA Intermediate · Corporate and Other Laws · Accounts of Companies

Dhruv Pharma Ltd, a company with a financial year ending 31 March, holds its AGM and wants to know where its books of account must be kept. The Board decides to keep the books at a branch office in another State of India. Which statement reflects the Companies Act, 2013?

The Board may decide to keep books of account at any place in India other than the registered office, provided a written notice with the full address of that place is filed with the Registrar within seven days of the decision. Keeping them elsewhere without filing is not permitted.

  1. ABooks must be kept only at the registered office, and no other location is permitted
  2. BBooks may be kept at any place in India as decided by the Board, if a notice in writing giving the full address of that place is filed with the Registrar within seven days of the decisionCorrect
  3. CBooks may be kept at any place outside India without any filing
  4. DBooks may be kept anywhere in India without any intimation to the Registrar

Explanation

Books of account may be kept at the registered office or at any other place in India as the Board decides, but then a notice in writing giving the full address of that other place must be filed with the Registrar within seven days of the Board decision. Option 1 is too restrictive, option 3 ignores the in-India rule and filing, and option 4 omits the filing. Electronic form is also permitted subject to rules.

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