You need to show them the rules under factory act (central,rules will apply) and under payment of wages act, both of which require you to maintain records for a period of 3 years from the date of last entry made in the register concerned. So you don't have to keep attendance records for more than 3 years.
Considering that you are going to ha e a problem, I suggest you get a lawyer or consultant involved who knows how to deal with them.
There must be a particular underlying reason for them asking 10,years records