Section 378ZE: Books of account
This section requires Producer Companies to maintain proper books of account and prepare financial statements in a specific manner.
The section, clause by clause
What the section says
In plain terms
(1)Every Producer Company shall keep at its registered office proper books of account with respect to—
Every Producer Company must keep proper books of account at its registered office that include details of all money received and spent, sales and purchases, liabilities, assets, and utilization of materials or labour for production, processing and manufacturing.
(1)(a)all sums of money received and expended by the Producer Company and the matters in respect of which the receipts and expenditure take place;
(1)(b)all sales and purchase of goods by the Producer Company;
(1)(c)the instruments of liability executed by or on behalf of the Producer Company;
(1)(d)the assets and liabilities of the Producer Company;
(1)(e)in case of a Producer Company engaged in production, processing and manufacturing, the particulars relating to utilisation of materials or labour or other items of costs.
(2)The balance-sheet and profit and loss accounts of the Producer Company shall be prepared, as far as may be, in accordance with the provisions contained in section 129.
The Producer Company's balance-sheet and profit and loss accounts must be prepared in accordance with the provisions contained in section 129.
The right-hand column is written from the section text, not quoted from it, and it has no legal force. Where the two differ, the left-hand column is the law.
This section refers to
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Reproduced from the official India Code print for reference. Check the current text on India Code before you rely on it, and read the section alongside its Rules. Nothing here is legal advice.