# Books of Account — Key Summary Points (Section 128)
## 1. What Must Be Maintained?
Every company must keep, for every financial year:
- Books of Account
- Other relevant books and papers
- Financial Statements
## 2. Manner of Maintenance
They must:
- Give a true and fair view of the company's state of affairs.
- Be maintained on an accrual basis and according to the double-entry system of accounting.
- Explain the transactions affecting both the registered office and branches.
## 3. Place of Keeping
- Default location: Registered Office of the company.
- BOD may decide to keep them at any other place in India, but must file a notice with the Registrar of Companies (ROC) giving the full address.
## 4. Branch Accounts
Where a company has a branch (in or outside India), the branch must keep proper books of account and send summarised returns to the registered office (or other place where books are kept) periodically.
## 5. Preservation Period
Books must be preserved for at least 8 immediately preceding financial years (longer if an investigation has been ordered by the Central Government).
## 6. Penalty for Non-Compliance
- Imprisonment of the responsible officer: maximum 1 year, OR
- Fine: Minimum ₹50,000, Maximum ₹5,00,000, OR
- Both.