# Books of Account — Section 128
## What Must Be Prepared
Every company shall prepare, for every Financial Year (FY):
- Books of Account (BOA),
- Other relevant books & papers, and
- Financial Statements (FS).
## Key Definitions
### Books & Papers
Includes BOA, deeds, vouchers, writings, documents, minutes & registers.
### Books of Account — Records of:
1. Money received and expended and matters relating to such receipt and expenditure;
2. Sales and purchases of goods and services;
3. Assets and liabilities;
4. Items of cost of the company under Section 148 (Cost Audit).
### Financial Statement Includes:
- Balance Sheet at the end of FY;
- Profit & Loss Account (for Section 8 companies, replaced by Income & Expenditure Account);
- Cash Flow Statement — except for:
- Private companies (if a startup, and not in default under Sections 92 & 137),
- OPC (One Person Company),
- Small Companies,
- Dormant Companies;
- Statement of Changes in Equity;
- Explanatory Notes annexed to the above.
### Financial Year (FY)
- Default: Period ending on 31st March of the year.
- Carve-out for new incorporations: If the company is incorporated on or after 1st January of a year, the first FY ends on 31st March of the following year.
- CG may allow a different period as FY for a company / body corporate which is a holding, subsidiary, or associate of a foreign company and is required to follow a different FY for consolidation outside India.
## Quality Standards for BOA
BOA shall:
- Give a true and fair view of the state of affairs of the company and its branches,
- Explain transactions at registered office and branches,
- Be kept on the accrual basis and double-entry system.
## Where to Keep BOA — Place of Maintenance
### Default Place
Registered office of the company.
### Alternative Place
Any other place in India that the BOD decides — but the company must file Form AOC-5 with ROC within 7 days of such decision, giving the full address.
### Branch Offices
If the company has a branch (in or outside India), the section is deemed complied with if:
- Proper BOA of the branch is kept at that branch, AND
- Proper summarised returns are sent to the company's registered office (or alternate place) on a periodical basis.
- If BOA are maintained outside India, summarised returns must be sent at quarterly intervals.