Ministry of Corporate Affairs (MCA) has issued a notification on 24th march 2021. Accordingly, the Central Government has made amendments in the Companies (Accounts) Rules, 2014.
According to the amended rule to be called Companies (Accounts) Amendment Rules, 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 edit trail cannot be disabled.
Further, in addition of the information and details specified in sub-rule (4), the report of the Board shall also contain:
- The detail of application made or any proceeding pending under the Insolvency and Bankruptcy Code, 2016 during the year along with their status as at the end of the financial year.
- The details of difference between the 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 reason thereof.
However, the amended rules are applicable with effect from 1st April, 2021.