Amended and updated notes on section 130 of Companies Act 2013. Detail discussion on provisions and rules related to re-opening of accounts on court’s or Tribunal’s orders.
Chapter IX (Sections 128–138) of the Companies Act, 2013 (CA 2013) deals with the provisions related to accounts of companies. Section 130 of CA 2013 provides for re-opening of accounts on court’s or Tribunal’s orders.
Recently, we have discussed in detail section 129 (Financial statement) of CA 2013. Today, we learn the provisions of section 130 of Companies Act 2013 read with the Companies (Accounts) Rules, 2014.
Section 130 of the Companies Act, 2013 has been notified by the Ministry of Corporate Affairs (MCA) vide Notification No. S.O. 1934(E) issued dated 01.06.2016. This notification shall come into force from 1st June, 2016 i.e. the commencement date of section 130 is 01-06-2016.
| Name of Act | The Companies Act 2013 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Ministry of Corporate Affairs (MCA) |
| Number of Chapters | 29 |
| Number of Sections | 484 (470-43+57) |
| Number of Schedules | 7 |
| You are reading: | |
| Chapter No. | IX |
| Chapter Name | Accounts of Companies |
| Section No. | 130 |
| Section Name | Re-opening of accounts on court’s or Tribunal’s orders |
| Monthly Updated Edition | Company Law PDF |
Section 130 of Companies Act 2013: Re-opening of accounts on court’s or Tribunal’s orders
Section 130 shall come into force on 1st June, 2016 vide Notification No. S.O. 1934(E) issued dated 01.06.2016.
(1) A company shall not re-open its books of account and not recast its financial statements, unless an application in this regard is made by the Central Government, the Income-tax authorities, the Securities and Exchange Board, any other statutory regulatory body or authority or any person concerned and an order is made by a court of competent jurisdiction or the Tribunal to the effect that—
- (i) the relevant earlier accounts were prepared in a fraudulent manner; or
- (ii) the affairs of the company were mismanaged during the relevant period, casting a doubt on the reliability of financial statements:
Provided that the court or the Tribunal, as the case may be, shall give notice to the Central Government, the Income-tax authorities, the Securities and Exchange Board or any other statutory regulatory body or authority concerned or any other person concerned and shall take into consideration the representations, if any, made by that Government or the authorities, Securities and Exchange Board or the body or authority concerned or the other person concerned before passing any order under this section.
(2) Without prejudice to the provisions contained in this Act the accounts so revised or re-cast under sub-section (1) shall be final.
(3) No order shall be made under sub-section (1) in respect of re-opening of books of account relating to a period earlier than eight financial years immediately preceding the current financial year:
Provided that where a direction has been issued by the Central Government under the proviso to sub-section (5) of section 128 for keeping of books of account for a period longer than eight years, the books of account may be ordered to be re-opened within such longer period.