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—
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 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.