Global Trade LLC is a company incorporated in the UK having a branch office in India. The company prepares its global financial statements as per UK…

(a) (i) According to section 381 of the Companies Act, 2013 read with Rule 4 of the Companies (Registration of Foreign Companies) Rules, 2014, 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: Every foreign company shall, along with the financial statement required to be filed with the Registrar, attach thereto the following documents; namely:- (1) Statement of related party transaction (2) Statement of repatriation of profits (3) Statement of transfer of funds (including dividends, if any) The above statements shall include such other particulars as are prescribed in the Companies (Registration of Foreign Companies) Rules, 2014. The documents referred to in this rule shall be delivered to the Registrar within a period of six months of the close of the financial year of the foreign company to which the documents relate: Provided that the Registrar may, for any special reason, and on application made in writing by the foreign company concerned, extend the said period by a period not exceeding three months. In the instant case, the claim of Global Trade LLC on non-attachment of documents usually attached with the financial statements with the Registrar under the pretext that there were no transactions of that nature is not valid; the company should have filed “Nil” statements in the prescribed documents. Also, the filing of said documents after 10 months from the close of the financial year is not in compliance. (ii) As per section 393, any failure by a company to comply with the provisions of Chapter XXII of the Companies Act, 2013, shall not affect the validity of any contract, dealing or transaction entered into by the company or its liability to be sued in respect thereof. However, the company shall not be entitled to bring any suit, claim any set-off, make any counter-claim or institute any legal proceeding in respect of any such contract, dealing or transaction, until the company has complied with the provisions of the Companies Act, 2013, applicable to it. Therefore, the claim of the company is not correct that it shall not be affected in any way, nor it shall affect the contracts entered by it. Even though the contract itself will not be affected, the company shall not be entitled to bring any suit, claim any set-off, make any counter-claim or institute any legal proceeding in respect of such contract, dealing or transaction, until the company has complied with the above stated provisions.