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

Kiwi Foods Ltd, a New Zealand company, has a place of business in Mumbai. It prepares its balance sheet and profit and loss account as per the law of its home country. Which statement correctly reflects the Companies Act, 2013 requirement on its accounts in India?

A foreign company with a place of business in India must prepare its financial statements each calendar year and deliver copies of the balance sheet and profit and loss account, with a list of Indian places of business, to the Registrar. Foreign incorporation or low turnover does not exempt it.

  1. AIt need not file any accounts because it is incorporated outside India
  2. BIt must file with the Registrar the balance sheet and profit and loss account of its foreign company, along with the documents required, within the prescribed periodCorrect
  3. CIt must file accounts only if its Indian business turnover exceeds Rs. 100 crore
  4. DIt must file accounts only with the Reserve Bank of India

Explanation

Every foreign company must, every calendar year, make up a balance sheet and profit and loss account in the prescribed form and deliver copies to the Registrar, along with a list of all places of business in India. No turnover threshold exists, and filing with RBI does not replace it. So the second option is correct.

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