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CS Executive · Setting Up of Business, Industrial and Labour Laws · Setting up of Branch Office, Liaison Office and Wholly Owned Subsidiary by Foreign Company

Kaveri Textiles Ltd, an Indian company, has a branch in Dubai that maintains its own proper books of account for the transactions effected there. Under section 128(2) of the Companies Act, 2013, the company is deemed to have complied with the requirement to keep books if the branch also does which of the following?

The company is deemed compliant if the branch keeps proper books of its own transactions and periodically sends proper summarized returns to the registered office or the other place where the company's books are kept. Nothing requires filing vouchers with the Registrar.

  1. ASends proper summarized returns periodically to the registered office or the other place where books are keptCorrect
  2. BSends all original vouchers monthly to the Registrar
  3. CFiles its books of account with the Central Government every year
  4. DSends the branch books to the statutory auditor's office permanently

Explanation

Section 128(2) says that where a company has a branch in India or outside India, it is deemed to comply if proper books relating to branch transactions are kept at the branch and proper summarized returns are periodically sent to the registered office or the other place. Sending vouchers to the Registrar or Central Government is not what the sub-section requires.

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