1) Every foreign company registered pursuant to Section 154 shall prepare an annual financial statement, along with the balance sheet and profit and loss account, in such a manner as to reflect the real situation of its transaction in Nepal, get it audited and submit the same to the Office no later than six months after the expiration of a financial year as if such company were a company incorporated under this Act.2) Every foreign company shall submit to the Office a copy of the annual financial statement, audit report and report of board of directors prepared for every financial year pursuant to the law of the country where its registered office is situated no later than three months after such statement and reports have been finally prepared.

3) The annual financial statement to be prepared by a foreign company pursuant to Sub-section(1) shall include the following details:

(a) Statements prepared in a manner to show classifying the particulars of the fixed, running and other properties held in the name of the foreign company within Nepal;

(b) clear details of cash held in the name of the foreign company with a bank and financial institution situated in Nepal;

(c) Clear details of cash held in the name of the foreign company with a bank and financial institution situated in Nepal;

(d) Total amount of loans and liabilities, if any, due and payable by the foreign company to any person who is a resident of Nepal or a Nepalese company registered under this Act.

4) Where any report and statement required to be submitted to the Office pursuant to Sub-section (2), and any document required to be attached therewith, are in a language other than the Nepali or English language, a copy of authentic translation of such document into the Nepali or English language shall also be attached therewith.

5) A foreign company which has got its liaison office registered in Nepal pursuant to Section 154 shall get certified by an auditor the statements of salary, allowance and amounts paid to the employees, consultants or liaison persons serving in such office, statements of deduction of tax from such payment pursuant to the prevailing law, payment of rental and expenses for the operation of such office and statements of deduction of tax from such payment pursuant to the prevailing law, and submit the same to the Office no later than three months after the expiration of a financial year.