Companies Act

Companies to compulsorily use accounting software with feature of recording audit trail w.e.f. 01.04.2021

Companies to compulsorily use accounting software with feature of recording audit trail which cannot be disabled – MCA Notification

Note: Requirement of mandatory audit trail in company accounting software postponed to financial year starting from 01.04.2022 Read more >>

MINISTRYOF CORPORATE AFFAIRS

NOTIFICATION

New Delhi, the 24th March, 2021

G.S.R. 205(E).—In exercise of the powers conferred by section 134 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Accounts) Rules, 2014, namely:-

1. Short title and commencement.-(1) These rules may be called the Companies (Accounts) Amendment Rules, 2021.

(2) They shall come into force with effect from the 1st day of April, 2021.

2. In the Companies (Accounts) Rules, 2014,-

(1) in rule 3, in sub-rule (1), the following proviso shall be inserted, namely:-

“Provided that for the financial year commencing on or after the 1st day of April, 2021, every company which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

”(2) in rule 8, in sub-rule (5), after clause (x), the following clauses shall be inserted namely:-

“(xi) the details of application made or any proceeding pending under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) during the year along with 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.”

[F. No. 1/19/2013-CL-V-Part III]

K.V.R. MURTY,Jt. Secy.

Note: The principal notification was published in the Gazette of India vide notification number G.S.R. 239(E), dated 31st March, 2014 and was last amended vide notification number G.S.R. 60 (E), dated the 30th January, 2020.

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