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CMA Intermediate · Corporate Accounting and Auditing · Statement of Profit and Loss and Balance Sheet (Schedule III of Companies Act, 2013)

Under section 381 of the Companies Act, 2013, which requirement applies to a foreign company regarding its accounts?

A foreign company must, in every calendar year, prepare a balance sheet and profit and loss account in the prescribed form and deliver a copy to the Registrar. A certified English translation is annexed if the documents are in another language.

  1. AIt must make out a balance sheet and profit and loss account in the prescribed form in every calendar year and deliver a copy to the RegistrarCorrect
  2. BIt need not prepare accounts in any case
  3. CIt must file accounts with the Registrar only once in five years
  4. DIt must file accounts only if its documents are in the English language

Explanation

Section 381(1) requires every foreign company, in every calendar year, to make out a balance sheet and profit and loss account in the prescribed form and deliver a copy to the Registrar. If documents are not in English, a certified English translation must be annexed. The Central Government may grant exemptions by notification.

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