Whether place of manufacture can be deemed to be branch office for purposes of carrying out audit - Companies Law - Letter : No. 8/16(1)/61‑PR,

Letter : No. 8/16(1)/61 ‑ PR, dated 9 ‑ 5 ‑ 1961. Subject:- Whether place of manufacture can be deemed to be branch office for purposes of carrying out audit Query : Will the place of manufacture be deemed to be a branch office for purposes of carrying out an audit or will it be sufficient compliance with the provisions of the Companies Act, if the books maintained at the manufacturing place are brought to the registered office or the main branch for the purpose of carrying out an audit ? Answer : The term branch office has been defined in section 2(9) and includes any establishment engaged in any production, processing or manufacture. Accordingly, the place of manufacture, referred to in the query, should be regarded as a branch office and should be audited as such under section 228 unless it is exempted from audit under the Companies (Branch Audit Exemption) Rules, 1961. As regards any accounts or other papers relating to this branch office kept at the head office, it is for the concerned auditor to decide about the procedure he should follow.