Section 130. Re-opening of accounts on court’s or Tribunal’s orders
(1) A company shall not re-open its books of account and not recast its financial statements unless an application is made by the Central Government, Income-tax authorities, 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 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 doubt on the reliability of financial statements.
Provided that the court or Tribunal shall give notice to the concerned authorities and take their representations into consideration before passing an order.
(2) The accounts so revised or re-cast shall be final.
(3) No order shall be made in respect of re-opening of books relating to a period earlier than eight financial years immediately preceding the current financial year:
Provided that where the Central Government has directed retention of books for a longer period under section 128(5), the books may be ordered to be re-opened within such longer period.
