Skip to content

CA Intermediate · Corporate and Other Laws · Accounts of Companies

Himalaya Textiles Limited, a public company incorporated in Ludhiana, closes its books on 31 March every year. Its board wants to know where the books of account and other relevant papers must ordinarily be kept. Under the Companies Act, 2013, what is the correct legal position?

Books of account are ordinarily kept at the registered office. The Board may resolve to keep them at another place in India, and the company must file the prescribed notice with the Registrar within seven days of that resolution. Shifting is therefore permitted, but only with this filing.

  1. AAt the registered office of the company, unless the board resolves to keep them at another place in India and files the prescribed notice with the Registrar within seven daysCorrect
  2. BAt the office of the statutory auditor, since the auditor has to inspect them
  3. CAt the residence of the managing director, provided the Registrar is informed annually
  4. DOnly at the registered office, and the board has no power to shift them to any other place

Explanation

The books of account must be kept at the registered office, but the Board may by resolution decide to keep them at any other place in India. The company must then file a notice in the prescribed form with the Registrar within seven days of the resolution. The option stating that no shifting is permitted is wrong because the Act expressly allows it.

Did you get it right without looking?

One question tells you little. A timed set on Accounts of Companies shows your real accuracy, how long you take and where you lose marks.

Practise Accounts of CompaniesFree diagnostic mock

More Accounts of Companies questions