Rule 4: Financial Statement of foreign company

Rule 4: Financial Statement of foreign company · Complied AI

(2)

Every foreign company shall, along with the financial statement required to be filed with the Registrar, attach thereto the following documents; namely:-

(a)

Statement of related party transaction, which shall include-

(i)

name of the person in India which shall be deemed to be the related party within the meaning of clause (76) of section 2 of the Act of the foreign company or of any subsidiary or holding company of such foreign company or of any firm in which such foreign company or its subsidiary or holding company is a partner;

(ii)

nature of such relationship;

(iii)

description and nature of transaction;

(iv)

amount of such transaction during the year with opening ,closing, highest and lowest balance during the year and provisions made (if any) in respect of such transactions;

(v)

reason of such transaction;

(vi)

material effect of such transaction on both the parties;

(vii)

amount written off or written back in respect of dues from or to the related parties;

(viii)

a declaration that such transactions were carried out at arms length basis; and

(ix)

any other details of the transaction necessary to understand the financial impact;

(b)

Statement of repatriation of profits which shall include-

(i)

amount of profits repatriated during the year;

(ii)

recipients of the repatriation;

(iii)

form of repatriation;

(iv)

dates of repatriation;

(v)

details if repatriation made to a jurisdiction other than the residence of the beneficiary;

(vi)

mode of repatriation; and

(vii)

approval of the Reserve Bank of India or any other authority, if any.

(c)

Statement of transfer of funds (including dividends if any) which shall, in relation of

any fund transfer between place of business of foreign company in India and any other related party of the foreign company outside India including its holding, subsidiary and associate company, include-

(i)

date of such transfer;

(ii)

amount of fund transferred or received;

(iii)

mode of receipt or transfer of fund;

(iv)

purpose of such receipt or transfer; and

(v)

approval of Reserve Bank of India or any other authority, if any.