Preservation of Accounts
Section 128 sub section 5
(5) The books of
account of every company relating to a period of not less than eight financial years immediately preceding a
financial year, or where the company had been in existence for a period less than eight years, in respect of all the
preceding years together with the
vouchers relevant to any entry in such books of account shall be kept in good
order
Books of account definition
Section 2 sub section 13
(13) "books of
account" includes records maintained in respect of—
(i)
all sums of money received and expended by a company and matters in relation to
which the receipts and expenditure take place;
(ii)
all sales and purchases of goods and services by the company;
(iii)
the assets and liabilities of the company; and
(iv)
the items of cost as may be prescribed under section 148 in
the case of a company which belongs to any class of companies specified under
that section;
148.
(1) Notwithstanding anything contained in this Chapter, the Central Government
may, by order, in respect of such class of companies engaged in the production
of such goods or providing such services as may be prescribed, direct that
particulars relating to the utilisation of material or labour or to other items
of cost as may be prescribed shall also be included in the books of account
kept by that class of companies:
Provided that the
Central Government shall, before issuing such order in respect of any class of
companies regulated under a special Act, consult the regulatory body
constituted or established under such special Act.
Brief
Subsection 5 of Section 128 says that books of account to be maintained not less than 8 financial years preceding financial year
In case company in existence less than 8 years then they have to maintain all books of account for those years.
Books of account
The entire set of books of account like financial activities
a) all sums of money received and expended by a company
b) sales and purchases of goods and services of the company
c) the assets and liabilities of the company
d) items of cost prescribed under Section 148 Application of cost Record
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