AMENDMENTS MADE BY MINISTRY OF CORPORATE AFFAIRS

COMPANY Mar 25, 2021 0 709 Add to Reading List

THE FOLLOWING AMENDMENTS THAT HAS TO BE HELD FROM 1ST DAY OF APRIL 2021, ARE AS FOLLOWS:

1. MANDATORY USE OF ACCOUNTING SOFTWARE HAVING AUDIT TRAIL.

The Ministry of Corporate Affairs has mede amendment in the Rule 3 and 8 of the Companies (Accounts) Rules 2014 on 25th March 2021.

From the Financial Year commencing on or after 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.

MCA also added clause xi in Rule 8, ” the details of an 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.”

in clause (xii) the details of the difference between the amount of the Valuation done at the time of one-time settlement and the valuation done while taking a loan from the Bank or Financial Institutions along with the reasons thereof.

2.Schedule III TO THE COMPANIES ACT 2013 AMENDED BY MCA.

The MCA has amended the Schedule III to the Companies Act, 2013 to incorporate the general instructions for preparation of the balance sheet and the profit and loss account of an Ind AS compliant company along with additional disclosure requirements. In fact the MCA has divided the Schedule III into two parts, namely Division I (Applicable to AS compliant companies) and Division II (Applicable to Ind AS compliant companies).