(1) At the expiration of each calendar year 1[or at the expiration
of a period of twelve months ending with such date as the Central Government may, by notification in
the Official Gazette, specify in this behalf], every banking company incorporated 2[in India], in respect
respect of all business transacted by it, and every banking company incorporated 3[outside India], in
respect of all business transacted through its branches 4[in India], shall prepare with reference to 5[that
year or period, as the case may be,] a balance-sheet and profit and loss account as on the last working
day of 6[that year or the period, as the case may be,] in the Forms set out in the Third Schedule or as
near thereto as circumstances admit:
7[Provided that with a view to facilitating the transition from one period, of accounting to another
period of accounting under this sub-section the Central Government may, by order published in the
Official Gazette, make such provisions as it considers necessary or expedient for the preparation of, or
for other matters relating to, the balance-sheet or profit and loss account in respect of the concerned
year or period, as the case may be.]
(2) The balance-sheet and profit and loss account shall be signed
(a) in the case of a banking company incorporated 4[in India], by the manager or the principal
officer of the company and where there are more than three directors of the company, by at least
three of those directors, or where there are not more than three directors, by all the directors, and
(b) in the case of a banking company incorporated 3[outside India] by the manager or agent of
the principal office of the company 4[in India].
(3) Notwithstanding that the balance-sheet of a banking company is under sub-section (1) required
to be prepared in a form other than the form 8[set out in Part I of Schedule VI to the Companies Act,
1956 (1 of 1956)], the requirements of that Act relating to the balance-sheet and profit and loss account
of a company shall, in so far as they are not inconsistent with this Act, apply to the
balance-sheet or profit and loss account, as the case may be, of a banking company.
1[(3A) Notwithstanding anything to the contrary contained in sub-section (3) of section 210 of the
Companies Act, 1956 (1 of 1956), the period to which the profit and loss account relates shall, in the
case of a banking company, be the period ending with the last working day of the year immediately
preceding the year in which the annual general meeting is held.]
9[Explanation.—In sub-section (3A), "year " means the year or, as the case may be, the period
referred to in sub-section (1).]
(4) The Central Government, after giving not less than three monthsnotice of its intention so to do
by a notification in the Official Gazette, may from time to time by a like notification amend the Forms
set out in the Third Schedule.
1. Ins. by Act 66 of 1988, s. 8 (w.e.f. 30-12-1988).
2. Subs. by Act 20 of 1950, s. 3, for "in a State " (w.e.f.18-3-1950).
3. Subs. by s. 3, ibid., for "outside the State " (w.e.f.18-3-1950).
4. Subs. by s. 3, ibid., for "in the State " (w.e.f. 18-3-1950).
5. Subs. by Act 66 of 1988, s. 8, for "that year " (w.e.f. 30-12-1988).
6 Subs. by s. 8, ibid., for "the year " (w.e.f. 30-12-1988).
7. Subs. by s. 8, ibid., for the proviso (w.e.f. 30-12-1988).
8. Subs. by Act 95 of 1956, s. 14 and Sch. for "marked F in the Third Schedule to the Indian Companies Act, 1913
(7 of 1913)" (w.e.f. 14-1-1957).
9. Ins. by Act 66 of 1988, s. 8 (w.e.f. 30-12-1988).