1 ANKIT OBEROI COMMERCE CLASSES

HINT-ANSWERS
CORPORATE & OTHER LAWS-INTERMEDIATE
TEST NO.9
TOPIC:-ACCOUNTS OF COMPANIES

NOTE:-EXCEPT ANS. 1, REST ARE HINTS, NOT THE SUGGESTED ANSWERS

Ans.1 The provisions laid down in Section 136 of Companies Act, 2013 states that Every listed company
having a subsidiary or subsidiaries shall place separate audited accounts in respect of each of subsidiary on
its website, if any. A listed company which has a subsidiary incorporated outside India (herein referred to
as "foreign subsidiary")
(a) where such foreign subsidiary is statutorily required to prepare consolidated financial statement under
any law of the country of its incorporation, then, consolidated financial statement of such foreign
subsidiary shall be placed on the website of the listed company;
(b) where such foreign subsidiary is not required to get its financial statement audited under any law of the
country of its incorporation and which does not get such financial statement audited, the holding Indian
listed company may place such unaudited financial statement on its website and where such financial
statement is in a language other than English, a translated copy of the financial statement in English shall
also be placed on the website

The Situation mentioned in the question provides that ABC Limited is listed on Bombay Stock Exchange
having 23 subsidiary Companies. Two of its subsidiary Companies XYZ Limited and PQR Ltd. incorporated
outside India. XYZ Limited is incorporated in France where Audit is compulsory Whereas PQR Limited
registered in Uganda where Audit is not mandatory.

After applying the above mentioned provisions on the situation given in the question, we can conclude
that ABC Listed shall place separate audited accounts of XYZ Limited on the website and unaudited
accounts of PQR Limited, if the accounts were not audited.

Ans. 2 Refer Section 135 of Companies Act, 2013

Ans.3 A director can make inspection personally or through an agent. provided there is no reasonable
objection to the person chosen by the Director and the agent undertakes not to utilize the information
obtained by him for any malafide purpose.
Therefore, the company cannot refuse Mr. Anandaraja to inspect the books of accounts..

Ans.4 A Ltd. can maintain its books of account at other place in India (other than Registered office) if Board
of directors pass resolution and gives notice to ROC within 7 days.

Ans.5 “Financial Year”, in relation to any company or body corporate, means the period ending on the 31st
day of March every year, in respect whereof financial statement of the company / body corporate is made
up.
A company or body corporate, being a holding or subsidiary of a company incorporated outside India,
which is required to follow a different financial year for consolidation of its accounts outside India, may apply
to the Tribunal. The Tribunal may, if it is satisfied, allow any period as its financial year, whether or not that
period is a year

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2 ANKIT OBEROI COMMERCE CLASSES

Therefore, Approval of Tribunal is required in this case.

Ans. 6
1. (d)
2. (a)
3. (c)

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