MCA has vide its notification dated 24th March, 2021 amended the Companies (Accounts) Rules, 2014 as follows:
Effective from 1st 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 the books of account including the date on which they were made and ensuring that the audit trail cannot be disabled.
Two more paragraphs are to be added in the Directors Report made after 1st April, 2021 and they are as follows:
- details of any application made or pending under the Insolvency and Bankruptcy Code, 2016 and the status at the year end, and
- details of difference between the amount of valuation done at the time of one time settlement and the valuation done while taking loan from banks & financial institutions and the reasons for the same.
Copy of the notification can be found in the MCA site. i.e. http://www.mca.gov.in