Insights

Legal and Corporate Secretarial Updates

Implementation of Audit Trail Feature for Accounting Software and Extension of due date for filing form CSR-2

April 13, 2022

Implementation of Audit Trail Feature for Accounting Software deferred till 01 April, 2023

The Ministry of Corporate Affairs (MCA) issued a notification directing all those companies which are using accounting software for maintaining their books of account to have an Audit Trail feature and creating an edit log of all the transactional changes if any along with the date.

As per the notification, the new audit trail feature in the software will be mandatory to implement with effect from 1st April 2023. This was originally planned to become effective from 2020-21 but later on, the effective date was moved to 1st April 2022. Now, it is further postponed to 1st April 2023.

With this move, business entities would now be required to keep an edit log of all the transactions including any changes made in the books of accounts. The purpose of the Central Government to implement an audit trail feature is to increase the level of transparency and accountability in the overall system.

To ensure that this is being implemented, companies need to ensure that their existing accounting software comprises an audit trail feature to remain compliant with the latest amendment.

The complete text of the Notification may be viewed at the below link:

https://bit.ly/3KxLJpp

Extension of due date for filing form CSR-2

The Ministry of Corporate Affairs (MCA) vide its notification dated 11th February 2022 introduced an e-form CSR-2 to report on Corporate Social Responsibility. It was provided that for the preceding financial year 2020-21, the due date to file form CSR-2 was 31st March 2022, but now the MCA has extended the due date by 2 months (i.e. till 31st May 2022) by notifying the Companies (Accounts) Second Amendment Rules, 2022.

The complete text of the Notification may be viewed at the below link:

https://bit.ly/3KxLJpp

Last updated: 13/04/2022

Article contributed by:

Kapil Gupta

Manager – Corporate Secretarial

MBG Corporate Services


What can we help you achieve?

Stay one step ahead in a rapidly changing world and build a sustainable future with us.

Get a quote