BOOKS OF ACCOUNTS,
ETC., TO BE KEPT BY COMPANY
By
CS D Hem Senthil Raj and CS K Vinoth
INTRODUCTION:
As
per Section 128 (1) of CA, 2013 every companies are required to prepare and
keep at its registered office
(a)
Books
of account and other relevant books and
(b)
Papers
and financial statement for every financial year.
including its branch office or
offices, if any.
DEFINITION
OF BOOKS OF ACCOUNTS:
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 the Company which belongs to
any class of companies specified under that section;
BRANCH
OFFICE:
Branch office
in relation to a Company means any establishment described as such by the
Company.
FAQ’s
Whether the Records of the
Company shall be kept other than the Registered Office?
A
Company can keep the above said documents and other relevant papers at any
place in India as decided by the Board of Directors of the Company from time to
time.
However,
the company shall intimate the Registrar by filing a Notice in writing giving
the full address of the place where the records are kept within seven days from
the date of decision taken by the Board.
Whether Company can keep its
books of accounts or other relevant papers in electronic format?
Company
can keep its records including the records of branch office, if any in electronic
format as permitted under Section 128 of the Act subject to the rules
prescribed in the rule 3 of Chapter IX of The Companies (Accounts) Rules, 2014.
However maintenance
of books of accounts in electronic mode is optional.
ADDITIONAL
COMPLIANCE FOR THE COMPANIES:
The company shall intimate to the
Registrar on an annual basis at the time of filing of financial statement-
(a) the name of the service
provider;
(b) the internet protocol address
of service provider;
(c) the location of the service
provider (wherever applicable);
(d) Where the books of
account and other books and papers are maintained on cloud, such address as
provided by the service provider.
In case
of the Companies having branch office in India or Outside India, the Company
shall be deemed to be complied with the provision
of this section if proper books of accounts relating to the transactions
effected at the branch office are kept at the Registered office of the Company
as per the mode of keeping of records prescribed by the Act.
MAINTENANCE
OF RECORDS:
Maintaining of Records
at least for a period of Eight Years:
The books of accounts
of every company relating to a period of not less than eight financial years
immediately preceding 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 accounts shall be kept in good order.
CIRCULATION
OF FINANCIAL STATEMENTS:
Manner
of circulation of financial statements in certain cases:
In case of all listed
companies
and
such public companies
which have a net worth of more than one crore rupees and turnover of more than
ten crore rupees, the financial statements may be sent-
ü by
electronic mode to such members whose shareholding is in dematerialised format
and whose email Ids are registered with Depository for communication purposes.
ü where
Shareholding is held otherwise than by dematerialised format, to such members
who have positively consented in writing for receiving by electronic mode; and
ü by
despatch of physical copies through any recognised mode of delivery as
specified under section 20 of the Act, in all other cases.
RESPONSIBLE
PERSONS FOR ENSURING COMPLIANCE:
Who
are the responsible persons to secure compliance with the requirement of books
of accounts
Following are the
persons responsible to secure compliance with the requirement of books of
accounts:
a) Managing
Director
b) Whole
Time Director in charge of Finance
c) Chief
Financial Officer
d) Any
other person of the Company charged by the Board with the duty of complying
with the provisions of Section 128 of the Act.
FORMAT OF NOTICE FOR
KEEPING RECORDS, BOOKS OF ACCOUNTS ETC AS PER SECTION 128 OF THE ACT:
Notice of Keeping
Records, Books of Accounts etc to Registrar of Companies as per Section 128(1)
of Companies Act, 2013
Name of the Company:
Date of Board Meeting:
Full Address of the
Place where Records of the Company shall be kept:
Particulars of the
Records to be kept:
1. .....................................
2. .............................................
3. ........................................
By
CS K Vinoth
CS D Hem Senthil Raj
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