Section 292 of the Companies Act, 2013
Section 292 of the Companies Act, 2013
– Books of account, etc., to be kept by company
📜 Summary of Section 292:
Section 292 mandates that every company must keep proper books of account and other relevant records that accurately reflect the company's financial position.
✅ Key Provisions:
Proper Books of Account:
Every company must maintain books of account with respect to:
All sums of money received and expended by the company,
The assets and liabilities of the company,
The nature of the company's business and operations,
Transactions, etc.
Location of Books:
Books of account should be kept at the company's registered office or another place approved by the Board of Directors.
If kept elsewhere, the company must notify the Registrar of Companies (ROC) within 7 days.
Duration of Retention:
Books of account must be preserved for at least 8 years immediately preceding the current year.
Inspection and Auditing:
Books of account shall be available for inspection by:
Directors,
Auditors,
Members (under certain conditions).
📌 Purpose:
To ensure transparency and accountability in the company's financial dealings.
To enable proper auditing and statutory compliance.
🧾 Example:
If XYZ Ltd. receives payments or incurs expenses, it must record all such transactions systematically in its books of account, which must be safely maintained and available for inspection.
RELATED Blog
0 comments