An investigation has been ordered in respect of Liberty Limited and consequently, the Central Government has directed the company to preserve the books of accounts of the company for the past 12 years. Subsequently, base

Section 128(5) of the Companies Act, 2013 stipulates that the books of account of every company relating to a period of not less than eight financial years immediately preceding a financial year or where the company has been in existence for a period less than eight years, in respect of all the preceding years together with the vouchers relevant to any entry in such books of accounts shall be kept in good order. But where an investigation has been ordered in respect of the company, the Central Government may direct that the books of accounts may be kept for such longer periods as it may deem fit. Section 130 of the Companies Act, 2013 provides that company shall revise and restate their accounts based on an order made by a court of competent jurisdiction or NCLT and such order shall not be made in respect of re-opening of books of accounts relating to a period earlier than eight financial years immediately preceding the current financial year. However, where a direction has been issued by the Central Government under section 128(5) for keeping of books of accounts for a period longer than 8 years, the books of accounts may be ordered to be revised or reopened within such longer period. In the light of the above, Liberty Ltd has no grounds to contend the order of the NCLT for revision of accounts for the past 12 years.