Books of Accounts

Companies are required to maintain accurate and comprehensive books of account, documenting all financial transactions and the company’s ongoing financial status. These records must reflect purchases, sales, stocks, and cash movements, enabling the preparation of financial statements.

Directors are responsible for preparing statutory financial statements annually, based on these records, following accounting standards. Records can be kept electronically or in documentary form at the registered office or another designated location. They must be preserved for at least six years, and if stored outside the country, certain regulations apply.

Accounting records should accurately reflect transactions, financial position, and facilitate the preparation of financial statements. They should be kept consistently and in a manner that guards against falsification. Records must be available for inspection by authorised individuals, either in written or converted form, upon request.

Failure to maintain proper accounting records can result in criminal offences for directors and potential civil liability, especially if it contributes to insolvency. However, directors may defend themselves by proving they took reasonable steps to ensure compliance. Civil liability may still apply regardless of criminal convictions.

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