Maintenance of Books of Accounts etc to be kept at a place other than Registered Office via e-Form AOC-5 under Section 128 of Companies Act, 2013

> Every company shall prepare and keep at its registered office books of account and other relevant books and papers and financial statement for every financial year which give a true and fair view of the state of the affairs of the company, including that of its branch office or offices, if any, and explain the transactions effected both at the registered office and its branches and such books shall be kept on accrual basis and according to the double entry system of accounting.

> Provided that all or any of the books of account aforesaid and other relevant papers may be kept at such other place in India as the Board of Directors may decide and where such a decision is taken, the company shall, within 7 days thereof, file with the Registrar a notice in writing giving the full address of that other place.

> If the Board of Directors decides by passing the resolution to keep all or any of the books of account at any other place in India besides the registered office then, the company shall, within 7 days of passing the Board Resolution, file this form giving full address of that other place in E form AOC-5.

> Where a company has a branch office in India or outside India, it shall be deemed to have complied with the provisions of sub-section (1), if proper books of account relating to the transactions effected at the branch office are kept at that office and proper summarised returns periodically are sent by the branch office to the company at its registered office or the other place referred to in sub-section (1).

> Every company must keep proper books of account with respect to:

  • all sums of money received and expended by the company and the matters in respect of which the receipt and expenditure take place;
  • all sales and purchases of goods by the company;
  • the assets and liabilities of the company; and
  • in the case of a company engaged in production, processing, manufacturing or mining activities, such particulars relating to utilization of material or labour or other items of cost as may be prescribed by the Central Government, provided the Central Government so directs to any such class of companies or any particular company.

> If the managing director, the whole-time director in charge of finance, the Chief Financial Officer or any other person of a company charged by the Board with the duty of complying with the provisions of this section, contravenes such provisions, such managing director, whole-time director in charge of finance, Chief Financial officer or such other person of the company shall be punishable with imprisonment for a term which may extend to one year or with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees or with both.

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