Poojitha Raam Vinay
(Availability of Books Of Account)
Ministry of Corporate Affairs vide its notification dated 5th August 2022 has amended the Companies (Accounts) Rules, 2014 regarding availability of books of account and other relevant books and papers maintained in electronic mode at all times and also details of person in control, if service provider is located outside India.
Analysis of the Rules
1. Rule 3(1)
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Books of Account maintained shall be accessible in India at all times. Accounting software used should be the software which has the feature of audit trail of every transaction and any changes made to the transaction shall be dated compulsorily (Date of Change) |
2. Rule 3(2)
The books of account and other relevant books and papers referred to in sub-rule (1) shall be retained completely in the format in which they were originally generated, sent or received, or in a format which shall present accurately the information generated, sent or received and the information contained in the electronic records shall remain complete and unaltered.
This rule has no Amendment.
3. Rule 3(3)
The information received from branch offices shall not be altered and shall be kept in a manner where it shall depict what was originally received from the branches.
This rule has no Amendment.
4. Rule 3(4)
The information in the electronic record of the document shall be capable of being displayed in a legible form.
This rule has no Amendment.
5. Rule 3(5)
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There shall be a proper system for storage, retrieval, display or printout of the electronic records as the Audit Committee, if any, or the Board may deem appropriate and such records shall not be disposed of or rendered unusable, unless permitted by law: Provided that the back-up of the books of account and other books and papers of the company maintained in electronic mode, including at a place outside India, if any, shall be kept in servers physically located in India on a periodic basis. |
There shall be a proper system for storage, retrieval, display or printout of the electronic records as the Audit Committee, if any, or the Board may deem appropriate and such records shall not be disposed of or rendered unusable, unless permitted by law: Provided that the back-up of the books of account and other books and papers of the company maintained in electronic mode, including at a place outside India, if any, shall be kept in servers physically located in India on a Daily Basis |
Back up of Books Of Account maintained Outside India shall be Kept in Servers Physically On a Daily Basis. |
6. Rule 3(6)
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Post Amendment |
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The company shall intimate to the Registrar on an annual basis at the time of filing of financial statement- the name of the service provider;the internet protocol address of service provider;the location of the service provider (wherever applicable);where the books of account and other books and papers are maintained on cloud, such address as provided by the service provider. |
The company shall intimate to the Registrar on an annual basis at the time of filing of financial statement- the name of the service provider;the internet protocol address of service provider;the location of the service provider (wherever applicable);where the books of account and other books and papers are maintained on cloud, such address as provided by the service provider. where the service provider is located outside India, the name and address of the person in control of the books of account and other books and papers in India. |
Company has to notify the Registrar of Companies (RoC) concerned about the name and address of the person in control of the books of account and other books and papers in India in the annual filings in cases where the service provider is located outside India. |
Electronic Mode Means: electronic form as defined in clause (r) of sub-section (1) of section 2 of Information Technology Act, 2000 (21 of 2000) and also includes an electronic record as defined in clause (t) of sub-section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000) and "books of account" shall have the meaning assigned to it under the Act.
Amendments in Nutshell
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