The Income Tax Authority (the statutory body) has gathered some information and is of the view that there has been a manipulation of accounts of FGH…

(i) According to section 130 of the Companies Act, 2013, a company shall not: a. re-open its books of account and b. recast its financial statements, unless an application in this regard is made by: a. the Central Government, b. the Income-tax authorities, c. the Securities and Exchange Board of India (SEBI), d. any other statutory regulatory body or authority or e. any person concerned. & an order is made by a court of competent jurisdiction or tribunal to the effect a. That the relevant earlier accounts were prepared in a fraudulent manner; or b. The affairs of the company were mismanaged during the relevant period, casting a doubt on the reliability of financial statements. No order shall be made in respect of re-opening of books of account relating to a period earlier than 8 financial years immediately preceding the current financial year. However, where a direction has been issued by the Central Government under the proviso to section 128 (5) for keeping of books of account for a period longer than 8 years, the books of account may be ordered to be re-opened within such longer period. (ii) According to section 131 of the Companies Act, 2013, if it appears to the directors of a company that: a. the financial statement of the company does not comply with the provisions of section 129; or b. the report of the Board does not comply with the provisions of section 134. They may prepare revised financial statement or board's report in respect of any of the three preceding financial years. Such revised financial statement or report shall not be prepared or filed more than once in a financial year. (iii) The board of directors may revise financial statements in respect of any of the three preceding financial years.