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CMA Intermediate · Corporate Accounting and Auditing · Accounts of Banking, Electricity and Insurance Companies

Under section 32(2) of the Banking Regulation Act, 1949, the Reserve Bank under section 27(2) requires an additional statement from a banking company about its balance-sheet and accounts. What must the company do when supplying it?

The banking company must send a copy of the additional statement or information to the registrar when it supplies it to the Reserve Bank. Section 32(2) imposes this duty in connection with the balance-sheet and accounts furnished under section 31.

  1. ASend a copy to the registrarCorrect
  2. BPublish it in a newspaper
  3. CGet it audited again by the Reserve Bank
  4. DSend it only to shareholders

Explanation

Section 32(2) provides that when supplying the additional statement or information required by the Reserve Bank under section 27(2), the banking company must send a copy to the registrar. The other options are not provided in the text.

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