Effective From
01.04.2021
Mandatory use of Accounting Software with Audit Trail
Every Company commencing from Financial Year 01.04.2021 shall use Accounting Software having feature to record audit trail of each transaction, creating the edit log of changes made & ensuring that the audit trail cannot be disabled.
Provision
Proviso added in Sub-rule (1) of Rule 3
Status of Application under Insolvency & Bankruptcy Code,2016
Every detail of any application made or pending under Insolvency & Bankruptcy Code,2016 has to be furnished.
Provision
Clause (xi) inserted in sub-rule(5) of Rule 8
Details of difference in valuation
Every detail of difference in valuation while taking loan and valuation done during one time settlement with a Bank or a Financial institution with reason for the same has to be accounted for.
Provision
Clause (xii) inserted in sub-rule(5) of Rule 8
AMLEGALS Remarks
These changes are going to bring more transparency and also laws becoming more stricter than before when it comes to Audit, IBC and valuation. These were grey areas and now, they will be screened with a different perspective altogether by the MCA and information may be passed over with different departments as well.
This will also push the companies for thinking towards better Governance than before.
Leave a Reply