Skip to content

CSEET · Fundamentals of Accounting · Introduction to Company Accounts

Under section 381 of the Companies Act, 2013 as given, which obligation applies to a foreign company in respect of its accounts, in every calendar year?

A foreign company must each calendar year make out a balance sheet and profit and loss account in the prescribed form and deliver a copy to the Registrar, annexing a certified English translation where needed, along with a list of its Indian places of business.

  1. APrepare accounts only if it has a place of business in more than one Indian state
  2. BPrepare a balance sheet and profit and loss account in the prescribed form, deliver a copy to the Registrar, and annex a certified English translation if not in EnglishCorrect
  3. CDeliver its accounts to the Tribunal for audit, with no filing with the Registrar
  4. DFile only a list of its places of business in India, with no financial statements

Explanation

Section 381 requires a foreign company to make out a balance sheet and profit and loss account in the prescribed form each calendar year and deliver a copy to the Registrar, with a certified English translation if the documents are not in English, plus a list of its places of business in India. The list alone is not enough, and the Tribunal audit is a liquidator matter.

Did you get it right without looking?

One question tells you little. A timed set on Introduction to Company Accounts shows your real accuracy, how long you take and where you lose marks.

Practise Introduction to Company AccountsFree diagnostic mock

More Introduction to Company Accounts questions