Companies to use accounting software with audit trail from April 1st 2021
The MCA vide Notification No. G.S.R. 205(E) dated March 24, 2021 has issued 'Companies (Accounts) Amendment Rules, 2021' to further amend the companies (Accounts) Rules, 2014, in a following manner:-
- Mandatory use of Accounting Software with audit trail:
Inserted proviso in Rule 3(1) of the Companies (Accounts) Rules, 2014 for the financial year commencing on or after April 1, 2021, every company shall use only such accounting software which has a feature of recording audit trail of each and every transaction and ensure that the audit trail can not be disabled.
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Rule 3(1) of the Companies (Accounts) Rules, 2014 now reads as under:-
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- Matters to be included in Board's report:
Inserted clause (xi) and (xii) in Rule 8(5) of the Companies (Accounts) Rules, 2014 stating that the report by Company's Board of Directors shall also contain the details of application/ proceeding pending under the Insolvency and Bankruptcy Code, 2016 and the details of difference between amount of the valuation done at the time of one time settlement and the valuation done while taking loan from the banks or financial institutions along with the reasons thereof.
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Rule 8(5)(xi) and (xii) of the Companies (Accounts) Rules, 2014 now reads as under: "8. Matters to be included in Board's report:-(5) In addition to the information and details specified in sub-rule (4), the report of the Board shall also contain- (xi) the details of application made or any proceeding pending under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) during the year alongwith their status as at the end of the financial year. (xii) the details of difference between amount of the valuation done at the time of one time settlement and the valuation done while taking loan from the Banks or Financial Institutions along with the reasons thereof." |
The above notification shall come into force with effect from April 1, 2021.
Read detailed notification at: http://mca.gov.in/Ministry/pdf/AccountsAmendmentRules_24032021.pdf
Also read:- Accounting software with audit trail deferred till 1st April, 2022
