1. Every foreign company shall, in every calendar year,
a. make out a balance sheet and profit and loss account in such form, containing such particulars and including or having annexed or attached thereto such documents as may be prescribed; and
b. deliver a copy of those documents to the Registrar:
Provided that: the Central Government may, by notification, direct that, in the case of any foreign company or class of foreign companies, the requirements of clause (a ) shall not apply, or shall apply subject to such exceptions and modifications as may be specified in that notification.
2. If any such document as is mentioned in sub-section (1 ) is not in the English language, there shall be annexed to it a certified translation thereof in the English language.
3. Every foreign company shall send to the Registrar along with the documents required to be delivered to him under sub-section (1 ), a copy of a list in the prescribed form of all places of business established by the company in India as at the date with reference to which the balance sheet referred to in sub-section (1 ) is made out.
Legal Commentary & Landmark Judgments: Section 381
Section 381 requires every foreign company to prepare financial statements of its Indian operations in each calendar year, submit audited accounts in accordance with Schedule III, file transfer pricing and related party disclosures, and deliver them to the Registrar in Form FC-3.
When auditing or defending foreign company branch filings, verify that consolidation accounting strictly segregates Indian branch financial flows from global headquarters. If an audit delay occurs overseas, file an application for extension of time with the RoC prior to the expiry of the six-month statutory deadline to prevent automatic penalty imposition.