Companies must take daily back up of Books of Accounts etc. maintained in electronic mode (including at a place outside India) in servers physically located in India
By way of recent amendments to the Companies (Accounts) Rules 2014 ( “Rules”), companies will now require to adhere to the following while maintaining books of accounts and other documents in electronic mode :
1. Books of accounts and other relevant books and papers must be accessible in India at all times. Prior to this,the Rules were silent on this aspect.
2. Backup of the books of account and documents, including at a place outside India needs to be taken on a daily basis in servers physically located in India. This amendment brings in clarity on the periodicity during which this backup needs to be taken.
3. Service providers located outside India will be required to inform the name and address of the person in control of the books of account and other books and papers in India to the Registrar on an annual basis at the time of filing financial statement.
(Note : Although the document is dated 5th August, 2022, this was uploaded on the e-gazette website on 12th August, 2022). Please find attached the screenshot below.
Source : Ministry of Corporate Affairs
