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

Kestrel Ltd, a company incorporated in the UK, has an Indian place of business. Which of the following correctly states its obligation regarding financial statements under the Companies Act, 2013?

Kestrel Ltd must prepare and deliver to the Registrar every year its balance sheet and profit and loss account, with other prescribed documents, as required of companies in its home country. It is not exempt merely because it is incorporated abroad, nor limited to branch accounts.

  1. AIt must deliver to the Registrar every year the balance sheet and profit and loss account prepared as per its home law, with the prescribed documentsCorrect
  2. BIt is exempt from all financial statement filing because it is incorporated abroad
  3. CIt must file only the financial statements of its Indian branch prepared under Indian GAAP, with no other documents
  4. DIt must file financial statements only if it has raised funds from the Indian public

Explanation

Every foreign company must prepare, in respect of each calendar year, a balance sheet, profit and loss account and the documents required for a company incorporated in its home country, and deliver copies to the Registrar with the prescribed list of Indian places of business. Exemption and branch-only filing are not provided.

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