The Ministry of Corporate Affairs vide its notification dated 24th March 2021 has amended the Companies (Accounts) Rules, 2014, in the exercise of the power conferred under section 139 along with Section 469 of the Companies Act, 2013 and the amended rules to be called as Companies (Accounts) Rules, 2014. The amendment shall come into force with effect from 01st April 2021.



The following provision shall be inserted:

Provided that in every financial year commencing on & from 01st April 2021, every company which uses accounting software for maintaining its books of account, shall use only that accounting software which allow recording of the audit trail of every transaction, can create and edit log of every change made in the book of account along withthe date when those changes were made and confirming that audit trail cannot be disabled.

RULE 8, SUB RULE (5) : Matters to be included in Board’s Report

The following clauses shall be inserted after clause (x):

Clause (xi): The Directors Report shall include the status regarding the details of an application made or any proceeding pending under the Insolvency and Bankruptcy Code, 2016 (IBC, 2016) during the year.

Clause (xii): The Directors Report shall contain 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 Financial Institutions or Banks accompanying the reasons there of.

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Posted by: CA Neetu Saini

AKGVG & Associates

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