Audit Trail Compliance in MerciGlobal Cloud ERP (Effective April 1, 2023)¶
As part of our commitment to aligning with legal and regulatory standards, MerciGlobal Cloud ERP fully complies with the audit trail requirements mandated by the Ministry of Corporate Affairs (MCA), India, effective April 1, 2023. These updates are essential to strengthen corporate governance, financial transparency, and compliance readiness.
1. Applicability¶
The mandate applies to all companies registered under the Companies Act, 2013, including:
- 🧍♂️ One Person Companies (OPCs)
- 🧱 Small Companies
- 🏢 Section 8 Companies (Not-for-profit Organizations)
- 💤 Dormant Companies
- 🌍 Foreign Companies Operating in India
2. Key Requirements¶
Audit Trail Feature¶
MerciGlobal Cloud ERP includes a built-in audit trail that logs every transaction for compliance with MCA norms.
Edit Log Creation¶
The ERP automatically captures an edit log for any modifications in the books of accounts, including: - ✍️ Nature of the change - 🕒 Date and time of modification - 👤 User who made the change
Non-Disabling of Audit Trail¶
The audit trail functionality is permanently enabled and cannot be disabled or tampered with.
3. Auditor’s Responsibilities¶
Statutory auditors are now required to validate:
- 📅 Whether the ERP was configured with the audit trail feature for the entire financial year.
- 🔍 If the audit trail has been tampered with or altered.
- 📚 Whether audit logs are preserved in accordance with statutory norms.
4. Record Retention¶
Under Section 128(5) of the Companies Act, companies are obligated to: - Retain books of account and audit trails for at least 8 years.
MerciGlobal Cloud ERP provides robust data archiving and backup functionalities to ensure seamless record retention.
5. Penalties for Non-Compliance¶
For Companies:¶
- 💸 Fines ranging from INR 50,000 to INR 500,000.
For Officers in Default:¶
- 🕓 Imprisonment up to 1 year, or
- 💰 Fines between INR 50,000 to INR 500,000, or both.
6. Implementation Considerations¶
Software Upgradation¶
Ensure your systems are updated or integrated with MerciGlobal Cloud ERP to meet all MCA audit trail standards.
Process Documentation¶
Maintain well-defined SOPs and documentation of internal processes for auditing purposes.
Training & Awareness¶
Conduct regular training to: - Educate staff on the importance of audit trails - Ensure correct ERP usage and data integrity
Final Note¶
These regulatory measures enhance the credibility of financial reporting and align with international corporate governance practices. MerciGlobal Cloud ERP is designed with full compliance in mind to support businesses in meeting these essential statutory obligations.
📞 For more information, training sessions, or upgrade support, contact the MerciGlobal support team.