New Delhi The Ministry of Corporate Affairs has further enhanced the record keeping requirements of businesses to ensure that various documents and records are readily available for officers to check at any point of time.
The Companies (Accounts) Fourth Amendment Rules, 2022 brought out by the ministry have modified the manner in which the books of accounts are to be maintained in electronic mode. It states that the books of account and other relevant books and papers held in electronic mode should remain accessible in India “at all times”.
Companies are required to maintain electronic records in such manner as their audit committees or board of directors deem appropriate and these details should not be disposed of unless permitted by law. The latest amendment states that backups of accounts and other documents held in electronic mode, including at any location outside India, are to be maintained “on a daily basis” in servers physically located in India. them in servers in India from time to time.
Also, companies will have to provide more details about the service provider who maintains the books of accounts and other documents in electronic mode. The amendment states that 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 is to be reported. This has to be reported to the Registrar of Companies on an annual basis.
The idea is to ensure that the financial and key operating statements of businesses are available to executives at any time. This reflects the increased monitoring that regulatory agencies are doing for better compliance.
catch all corporate news And updates on Live Mint. download mint news app to receive daily market update & Live business News,