(12.13.1)INSPECTION AND INVESTIGATION

Inspection of Books of Account etc', of Companies. Section 209,4' provides that the books of account and other books and papers of every company shall be open to inspection during business hours (i) by the Registrar, or (ii) by such officer of government as may be authorised by the Central Government in this behalf.

The books of account include ledger, cash book, journal and vouchers, deeds, writings and documents.

The place at which inspection may be carried out need not be registered office of the company. The books of account are required to be kept either at the registered office of the company or at some other place, after intimation to Registrar. Thus the books of account can be inspected at such other place also.

Section 2094(2) requires every director, other officer or employee of the company to assist in inspection. He is required to produce to the inspecting authority such books of account and other books and papers of the company in his custody or control and to furnish him with any statement, information or explanations relating to the affairs of the company as the said authority may require him within such time and at such place as may be specified.

Section 209 gives certain powers to the inspectors. These are: (i) to make copies; (ii) to place identification marks; (iii) to exercise powers of civil courts with regard to (a) the discovery and production of books of account and other documents, at such place and such time as may be specified by him; (b) summarising and enforcing the attendance of persons and examining them on oath; (c) inspection of any books, registers and other documents of the company at any place.