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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

Kestrel Inc., a US company, has a principal place of business in Bengaluru. Which items must the books it keeps there cover under section 384(3) of the Companies Act, 2013?

The books must cover monies received and spent, sales and purchases made, and assets and liabilities, in the course of or in relation to the company's business in India. Section 384(3) lists all three heads, so covering only one of them is insufficient.

  1. AOnly sales and purchases made in India
  2. BOnly assets and liabilities held in the USA
  3. CMonies received and spent, sales and purchases, and assets and liabilities in relation to its Indian businessCorrect
  4. DOnly the salaries paid to its Indian employees

Explanation

Section 384(3) specifies books with respect to monies received and spent, sales and purchases made, and assets and liabilities, in the course of or in relation to its business in India. Limiting the books to only sales and purchases is incomplete, so that option is wrong.

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