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CS Professional · Strategic Management and Corporate Finance · Foreign Funding - Instruments, Laws and Procedures

Under the Companies Act, 2013 as reproduced in the official text, a foreign company must, in every calendar year, do which of the following?

A foreign company must prepare a balance sheet and profit and loss account every calendar year in the prescribed form and deliver a copy to the Registrar, as Section 381(1) provides. The duty is annual, and the filing is made to the Registrar.

  1. AMake out a balance sheet and profit and loss account and deliver a copy of those documents to the RegistrarCorrect
  2. BFile its audited accounts only with the Reserve Bank of India
  3. CDeliver its accounts to the Registrar only once every three years
  4. DPublish its accounts only in its home country

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. The Central Government may by notification exempt or modify this for specified companies, but there is no triennial or home-country-only rule.

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