Place of keeping books of account?
Section 128(1) of the Companies Act, 2013 requires every company to prepare and keep at its registered office books of account and other relevant books and papers and financial statement for every financial year.
All or any of the books of account aforesaid and other relevant papers may be kept at any other place in India as may be decided by the Board of Directors. The notice regarding address at which books of account may be kept is required to be filed with the Registrar within seven days of passing of resolution by Board of Directors in Form AOC-5 (Rule 2A of the Companies (Accounts) Rules, 2014).
Preservation of books of account?
Section 128(5) provides that 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.
Keeping of books of account in electronic mode?
Rule 3 of Companies (Accounts) Rules, 2014 provides that the books of account may also be maintained in electronic mode. The information in the electronic record of the document shall be capable of being displayed in a legible form. There shall be a proper system for storage, retrieval, display or printout of the electronic records as the Audit Committee, if any, or the Board may deem appropriate and such records shall not be disposed of or rendered unusable, unless permitted by law.
The back-up of the books of account and other books and papers of the company maintained in electronic mode, including at a place outside India, if any, shall be kept in servers physically located in India on a periodic basis.
In case a company has a branch office in India or outside India, it shall be deemed to have complied with these provisions, if proper books of account relating to the transactions effected at the branch office are kept at that office and proper summarized returns periodically are sent by the branch office to the company at its registered office or the other place.