# Accounts of Foreign Company — Section 381 & Rule 4
## Section 381(1) — Balance sheet & P&L
Every foreign company shall, in every calendar year:
- (a) Make out a balance sheet and profit & loss account with prescribed particulars and annexures;
- (b) Deliver a copy of those documents to the Registrar in Form FC-3.
### Notes / carve-outs
- The Central Government may, by notification, exempt or modify these requirements for any foreign company or class.
- If the company ceases to have a place of business in India, it must notify the Registrar; the obligation to file documents ends from that date (provided no other place of business remains).
## Section 381(2) — Translation
If any such document is not in English, a certified English translation must be annexed.
## Section 381(3) — List of places of business
Every foreign company shall send to the Registrar a copy of a list of all the places of business established in India.
## Rule 4 — Financial Statement of Foreign Company
### Rule 4(1) — Preparation
Financial statement of the Indian business operations must be prepared in accordance with Schedule III or as near thereto as possible for each financial year, including:
- (i) Documents required to be annexed under Chapter IX (Accounts of Companies);
- (ii) Copies of the latest consolidated financial statements of the parent foreign company, as submitted in its country of incorporation.
### Rule 4(2) — Additional documents to be attached
Along with the financial statement filed with the Registrar, attach:
- (a) Statement of related party transactions
- (b) Statement of repatriation of profits
- (c) Statement of transfer of funds (including dividends, if any)
### Timeline
- Documents to be delivered to the Registrar within 6 months of the close of the financial year of the foreign company.
- Registrar may, on a written application and for special reasons, extend this period — maximum extension: 3 months.
## Audit of accounts
- Accounts pertaining to Indian business operations must be audited by a practising Chartered Accountant in India (individual, firm, or LLP of practising CAs).
- The provisions of Chapter X (Audit and Auditors) apply mutatis mutandis to foreign companies, as far as applicable.