Board of Directors of Anil Limited has decided not to preserve the books of accounts and other related records of accounts, for more than five years immediately preceding the relevant financial year of 2016-17 due to sho

According to sub-section (5) of section 128 of the Companies Act, 2013, the books of accounts, together with vouchers relevant to any entry in such books are required to be preserved for a period of not less than eight financial years immediately preceding a financial year. Where the company had been in existence for a period less than eight years, the books of account in respect of all the preceding years together with the vouchers relevant to any entry in such books of account shall be kept in good order. The provisions of the Income-tax Act, 1961 shall also be complied with in this regard. As per proviso to sub-section (5) of section 128, where an investigation has been ordered in respect of the company under Chapter XIV, the Central Government may direct that the books of account may be kept for such longer period as it may deem fit and give directions to that effect. The decision taken by the Board of Directors of Anil Limited is not in accordance with the provisions of the law and the company cannot do so.