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 Board
or any other statutory regulatory body or authority 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 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.