Maintenance of ‑ Whether cost accounting records can be maintained by entries in pencil in terms of requirement of the section - Companies Law - Circular: No. 2/83,

Circular: No. 2/83, dated 2 ‑ 3-1983. Subject:- Maintenance of ‑ Whether cost accounting records can be maintained by entries in pencil in terms of requirement of the section A case has come to the notice of the Government where certain cost accounting records of a company were maintained in pencil. The question whether accounting records could be maintained by entries in pencil was examined by the Department in the light of the requirement under section 209, that proper books of account shall be kept by every company. Further, sub‑section (4A) of section 209 provides that the books of account, etc., relating to a period of not less than 8 years shall be maintained in good order. It has been decided that having regard to the provisions of section 209, books of account required to be maintained under section 209 should be prepared and maintained in indelible ink for giving a proper and adequate meaning to the words proper books of account in section 209.