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 in this regard is made by the
Central Government, the Income -tax authorities, the 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 to the effect 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 a doubt on the
reliability of financial statements:
Provided that the court or the Tribunal, as the case may be, shall give notice to the Central
Government, the Income -tax authorities, the Securities and Exchange Bo ard or any other statutory
regulatory body or authority concerned 1[or any other person concerned] and shall take into
consideration the representations, if any, made by that Government or the authorities, Securities and
Exchange Board or the body or authority concerned 1[or the other person concerned] before passing any
order under this section.
(2) Without prejudice to the provisions contained in this Act the accounts so revised or re -cast under
sub-section (1) shall be final.
2[(3) No order shall be made under sub-section (1) in respect of re-opening of books of account relating
to a period earlier than eight financial years immediately preceding the current financial year: