Companies Act, 1956: Strict Rules on Bookkeeping, Record Preservation, and Directors' Accountability with Penalties for Non-Compliance.
The Companies Act, 1956 mandates companies to maintain proper books of account at their registered office, detailing financial transactions, assets, liabilities, and specific cost particulars for certain industries. Books can be kept elsewhere with board approval and notification to the Registrar. Failure to maintain records can lead to penalties, including imprisonment. Companies must preserve records for at least eight years, with directors having inspection rights. Annual accounts must be presented at general meetings, with penalties for non-compliance. The Board's report must include a Directors' Responsibility Statement, ensuring adherence to accounting standards and safeguarding company assets.
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