Before passing the order, the Court/NCLT must give notice to the CG, IT authority, SEBI, statutory regulatory body and the concerned person and take their representations into consideration.
## 5. Time Limit
Order can relate only to 8 FYs immediately preceding the current FY.
Exception: If CG has directed maintenance of BOA for a longer period under Sec 128(5), accounts of that longer period can also be re-opened.
## 6. Finality
The revised or re-casted accounts are final.
Worked example
### Example 1
Example — 8-Year Bar: In FY 2025-26, SEBI files an application with NCLT to reopen C Ltd.'s accounts of FY 2013-14. Since 2013-14 falls beyond the 8-year window (only FYs 2017-18 to 2024-25 are within reach), NCLT cannot allow the reopening — even if fraud or mismanagement is suspected.
### Example 2
Example — Longer period: If CG had directed M Ltd. to maintain its BOA for 12 years under Section 128(5), reopening can extend to that longer period and is not capped at 8 years.
⚠️ Common exam mistakes
Thinking the company itself can voluntarily reopen — only a Court/NCLT order on application by listed authorities is permitted.
Forgetting the 8-year ceiling — counted from the current FY, not from the application date.
Overlooking the procedural requirement of notice/representation to CG, IT, SEBI and statutory regulators before passing the order.
Confusing this with Section 131 (voluntary revision) — Section 130 is involuntary reopening; Section 131 is voluntary revision.
Bare-Act text Section 130 · Companies Act, 2013 · click to expand
Section 130 — Re-opening of accounts on court's or Tribunal's orders: A company shall not re-open its books of account and not recast its financial statements unless an application in this regard is made by the Central Government, Income Tax authorities, SEBI, any other statutory regulatory body or authority or any concerned person and an order is made by a court of competent jurisdiction or the Tribunal to the effect that the relevant earlier accounts were prepared in a fraudulent manner or the affairs of the company were mismanaged during the relevant period casting doubt on the reliability of the FS. The court/Tribunal shall give notice to the CG, IT authorities, SEBI or any other statutory regulatory body or authority and the concerned parties and shall take into consideration the representations made by them. No order shall be made in respect of re-opening of books of account relating to a period earlier than eight FYs immediately preceding the current FY, unless a longer-period direction has been issued under Section 128(5).