Centre steps up record keeping norms of businesses

NEW DELHI : The ministry of company affairs has stepped up the record keeping necessities of businesses in a bid to be sure that varied paperwork and information are available for the authorities to examine any time. 

The Companies (Accounts) Fourth Amendment Rules, 2022 introduced out by the ministry modified the style through which books of accounts must be stored in digital mode. It mentioned that the books of account and different related books and papers maintained in digital mode ought to stay accessible in India “always”. 

Companies are required to maintain the electronic records the way their audit committees or board of directors consider it appropriate and these details are not to be disposed of unless permitted by law. The latest amendment says that the back up of the books of account and other documents kept in electronic mode, including at any place outside India have to be kept in servers physically located in India “on a daily basis.” The earlier requirement was to take care of them in servers in India on a periodic foundation.

Also, corporations have to present extra details about the service supplier that maintains the books of accounts and different paperwork in digital mode. The modification says that the place the service supplier is situated exterior India, the identify and deal with of the particular person in management of the books of account and different books and papers in India must be reported. This must be reported to the registrar of corporations on an annual foundation.

The thought is to be sure that the monetary and key operational particulars of businesses can be found for the authorities at any given cut-off date. This displays the elevated monitoring that regulatory companies are enterprise for higher compliance. 

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