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CA Intermediate · Corporate and Other Laws · Accounts of Companies

Nirmal Textiles Ltd, a public company incorporated in 2015, has its registered office in Surat. Its Board wants to know where the books of account must ordinarily be kept. Which statement reflects the correct legal position under the Companies Act, 2013?

Books of account must be kept at the registered office, but the Board can pass a resolution to keep them at another place in India. The company must then intimate the Registrar within seven days. Keeping them anywhere in the world or only with the auditor is not the law.

  1. ABooks of account must be kept at the registered office, although the Board may decide by resolution to keep them at any other place in IndiaCorrect
  2. BBooks of account must be kept only at the registered office, with no other place permitted under any circumstances
  3. CBooks of account may be kept at any place in the world, as long as the company informs the shareholders in the annual general meeting
  4. DBooks of account must be kept with the statutory auditor, who holds them on behalf of the company

Explanation

A company must keep books of account at its registered office, but the Board may by resolution decide on another place in India. In that case the company must file a notice in the prescribed form with the Registrar within seven days. Keeping them only at the registered office is too rigid, and keeping them abroad is not permitted in this way.

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