Skip to content

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

Orion Global PLC, a foreign company, has a place of business in Delhi. Its Indian operations generate revenue, and it must prepare the financial statements for its Indian business. Which statement is correct under the Companies Act, 2013?

Orion must prepare its balance sheet, profit and loss account and related documents for each financial year in the prescribed form and deliver copies to the Registrar. Foreign companies are not exempt, and filing only in the home country does not satisfy the Indian requirement.

  1. AIt must prepare a balance sheet and profit and loss account as per Schedule III format for its India business and deliver copies to the Registrar annuallyCorrect
  2. BIt is exempt from filing any financial statements in India
  3. CIt need only file its home-country accounts with the Registrar of its country
  4. DIt need file financial statements only if it has paid-up capital above Rs 5 crore

Explanation

Every foreign company must prepare, in respect of each financial year, a balance sheet, profit and loss account and documents as prescribed, and deliver copies to the Registrar. The financial statements follow the prescribed requirements applicable to companies. No exemption by capital size exists, and home-country filing alone is insufficient.

Did you get it right without looking?

One question tells you little. A timed set on Companies Incorporated Outside India shows your real accuracy, how long you take and where you lose marks.

Practise Companies Incorporated Outside IndiaFree diagnostic mock

More Companies Incorporated Outside India questions