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CS Executive · Setting Up of Business, Industrial and Labour Laws · Identifying Laws applicable to various Industries and their Initial Compliances

Sundaram Auto Components Pvt Ltd ended its financial year on 31 March. The compliance head classifies obligations into event-based and time-based. Which pairing is correct?

Event-based compliances are triggered by an occurrence, like a share allotment, while time-based compliances recur on fixed dates, like annual filing of financial statements with the Registrar. The option pairing allotment return as event-based and annual financial statements as time-based is therefore correct; the others invert the classification.

  1. AHolding the annual general meeting is event-based; allotment of shares is time-based
  2. BFiling the return for a share allotment after the allotment is event-based; the annual filing of financial statements with the Registrar is time-basedCorrect
  3. CAppointment of a director is time-based; GST monthly return is event-based
  4. DChange of registered office is time-based; annual return is event-based

Explanation

Event-based compliances arise only when a specific event occurs, such as allotment, director appointment or change of registered office. Time-based compliances recur on fixed dates, such as the annual filings, AGM and monthly GST returns. Only the second option pairs them correctly; the others reverse the classification.

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