{"id":53588,"date":"2023-03-18T16:21:42","date_gmt":"2023-03-18T10:51:42","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=53588"},"modified":"2023-03-18T16:21:43","modified_gmt":"2023-03-18T10:51:43","slug":"companies-accounts-amendment-rules-2023","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/companies-accounts-amendment-rules-2023\/","title":{"rendered":"Companies (Accounts) Amendment Rules, 2023"},"content":{"rendered":"\n<p>The Ministry of Corporate Affairs (MCA) notified the\nCompanies (Accounts) Amendment Rules, 2023, on 20 January 2023 to amend the\nCompanies (Accounts) Amendment Rules of 2014. The MCA amended the latter in the\nexercise of the powers conferred upon it under various provisions of the\nCompanies Act of 2013, namely Section 128 (1) and (3), Section 129 (3), Section\n133, Section 134, Section 135 (4), Section 136 (1), Section 137, Section 138\nand Section 469. The Companies (Accounts) Amendment Rules, 2023, come into\neffect on 23 January 2023.<\/p>\n\n\n\n<p>The Companies (Accounts) Rules of 2014 provides for\nrules for the maintenance of book of accounts, features of the financial\nstatements of a company, the manner in which accounts shall be consolidated,\nboard report based on the financial statements of the company, foreign exchange\nearnings and outgo, financial statements and the manner of its circulation,\nfiling of financial statements with the Registrar, the appointment of internal\nauditor among other things.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/companies-accounts-amendment-rules-2023\/#Amendments_to_the_Companies_Accounts_Amendment_Rules_2023\" >Amendments to the Companies (Accounts)\nAmendment Rules, 2023<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/companies-accounts-amendment-rules-2023\/#What_Falls_Under_The_Purview_Of_The_%E2%80%98Book_Of_Accounts\" >What Falls Under The Purview Of\nThe &#8216;Book Of Accounts&#8217;?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/companies-accounts-amendment-rules-2023\/#Steps_to_Maintain_Book_of_Accounts_at_a_Place_Other_Than_the_Registered_Office\" >Steps to Maintain Book of Accounts\nat a Place Other Than the Registered Office<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/companies-accounts-amendment-rules-2023\/#What_is_Form_AOC-5\" >What is Form AOC-5?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/companies-accounts-amendment-rules-2023\/#Purpose_of_Filing_Form_AOC-5\" >Purpose of Filing Form AOC-5<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/companies-accounts-amendment-rules-2023\/#Amended_Form_AOC-5_under_Companies_Accounts_Amendment_Rules_2023\" >Amended Form AOC-5 under Companies (Accounts)\nAmendment Rules, 2023<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/companies-accounts-amendment-rules-2023\/#Penalty_for_Non-Compliance\" >Penalty for Non-Compliance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/companies-accounts-amendment-rules-2023\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Amendments_to_the_Companies_Accounts_Amendment_Rules_2023\"><\/span>Amendments to the Companies (Accounts)\nAmendment Rules, 2023<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Companies (Accounts) Amendment Rules, 2023 has amended\nform number AOC-5 which is attached in the Annexure to the Companies (Accounts)\nAmendment Rules of 2023. Form AOC-5 pertains to the notice details of the\naddress where the book of accounts has to be maintained. Before delving into a\ndeeper understanding of the amendments, let us first understand the basics\npertaining to them.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Falls_Under_The_Purview_Of_The_%E2%80%98Book_Of_Accounts\"><\/span>What Falls Under The Purview Of\nThe &#8216;Book Of Accounts&#8217;?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In\naccordance with Section 2(13) of the Companies Act of 2013, a book of accounts shall\ninclude records or data maintained for the following purposes:<\/p>\n\n\n\n<ul><li>All the sums of money expanded and\nreceived by a company pertaining to which expenditure and receipts take place.<\/li><li>All the sales and purchase of services\nand goods by a company.<\/li><li>The liabilities and assets of a\ncompany, and<\/li><li>The items of cost as may be provided\nunder section 148 of the Companies Act of 2013 if the company falls under the\nclass of companies mentioned under the section.<\/li><\/ul>\n\n\n\n<p>Book of Accounts and other\nrelevant\npapers will be required to be prepared by all companies, and they are also\nrequired to keep them at the registered office of the company or any other\nplace which has been decided upon by the board of directors.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Steps_to_Maintain_Book_of_Accounts_at_a_Place_Other_Than_the_Registered_Office\"><\/span>Steps to Maintain Book of Accounts\nat a Place Other Than the Registered Office<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li><strong>Conduct a Board Meeting<\/strong><\/li><\/ul>\n\n\n\n<p>A board meeting shall be held in accordance\nwith the standards which have been prescribed for board meetings by the <strong>ICSI<\/strong><sup><a class=\"text-primary\" href=\"https:\/\/www.icsi.edu\/home\/\"><strong>[1]<\/strong><\/a><\/sup> in SS-1 with the agenda of discussing and deciding\nupon a place in India other than the registered office of the company where the\nbook of accounts shall be maintained. A resolution is required to be passed in\nthis regard.<\/p>\n\n\n\n<ul><li><strong>Filing\nForm AOC-5<\/strong><strong><\/strong><\/li><\/ul>\n\n\n\n<p>The company is required to file Form AOC-5 to\nintimate the Registrar of companies of details pertaining to the address of\nsuch other place in India where the book of accounts shall be maintained. Form\nAOC-5 is required to be filed before the expiry of seven days from the date on\nwhich the board resolution was passed with full address details of such other\nplace.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Form_AOC-5\"><\/span>What is Form AOC-5?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As mentioned above, Form AOC-5 deals with details\npertaining to the address where the book of accounts is being maintained and\nwhich is required to be filed with the Registrar of Companies. The law\ngoverning Form AOC-5 is Section 128 of the Companies Act of 2013 and Rule 2(A)\nof the Companies (Accounts) Rules of 2014.<\/p>\n\n\n\n<p>Section 128 of the Companies Act of 2013 puts an obligation\non companies to maintain the book of accounts, financial statements giving an\naccurate view of the state of affairs and the condition of the company along\nwith its branch offices, and other relevant papers and books at the registered\noffice of the company. All the above mentioned must be maintained in a manner\nwhich gives a clear understanding of the transactions carried out at the\nregistered office and branch office of the company. The books are required to\nbe maintained in accordance with the double entry accounting system and must be\nkept on an accrual basis. Any or all of the book of accounts can be held at any\nplace other than the registered office of the company, which has been mutually\ndecided upon by the Board of Directors as well. Once a decision regarding the\nplace has been made, the complete address of the place has to be intimated to\nthe Registrar of Companies before the expiry of 7 days. Such book of accounts\nor papers can also be maintained in electronic form.<\/p>\n\n\n\n<p>Section 128 of\nthe Companies Act of 2013 essentially states that the book of accounts and\nother relevant papers can be kept at a place in India other than the registered\noffice of the company after obtaining the approval of the board of directors of\nthe company. A resolution must be duly passed in a board meeting of the company\non the location of the other place where the book of accounts shall be kept. The\ncompany is also under the obligation intimate the Registrar of companies of\nsuch change.<\/p>\n\n\n\n<p>Rule 2(A) of the Companies (Accounts) Rules of 2014\nprovides that the notice to the Registrar, giving details of the address of the\nregistered office or any other place agreed to by the Board of Directors to\nkeep the book of accounts, as provided under the proviso of Section 128 of the\nCompanies Act of 2013, shall be given under Form AOC-5.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Purpose_of_Filing_Form_AOC-5\"><\/span>Purpose of Filing Form AOC-5<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The primary purpose of Form AOC-5 is to properly\nmaintain the book of accounts of a company for the following purposes:<\/p>\n\n\n\n<ul><li>To review all the transactions undertaken by the company, including the\nmoney being expended and received by a company. It also helps get an idea of\nthe significant areas where the funds of the company are being used.<\/li><li>For the purchase and sales made by a company.<\/li><li>To get a clear picture of the assets and liabilities of a company.<\/li><li>If the company engages in varied activities like mining, processing,\nmanufacturing, and production, among other things, the book of accounts shall\ngive an idea of the specifics regarding the utilisation of material and labour,\namong other things, as prescribed by the Central Government, if the Government\nmandates that any particular companies or class of companies shall do so.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Amended_Form_AOC-5_under_Companies_Accounts_Amendment_Rules_2023\"><\/span>Amended Form AOC-5 under Companies (Accounts)\nAmendment Rules, 2023<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The amended Form\nAOC-5 is attached to the Annexure of the Companies (Accounts) Amendment Rules, 2023.<\/p>\n\n\n\n<p>The essential details which are required to be filled\nin the amended form are as follows:<\/p>\n\n\n\n<ul><li>Company information like corporate identification\nnumber or CIN, name of the company, registered office address of the company,\nand date on which the board resolution where the decision regarding the address\nof the place where the book of accounts shall be maintained was convened.<\/li><li>Detailed\naddress of the office space or the registered office where the book of accounts\nwill be maintained. Details regarding the latitude, longitude, country, pin\ncode or zip code, area or locality, city, district and state or union territory\nat the office space or the registered office are required to be submitted.<\/li><li>Information\nregarding the police station under whose jurisdiction the office space or\nregistered office where the book of accounts of the company shall be maintained\nfalls under. The address should be comprehensive, the details pertaining to the\nlatitude, longitude, country, pin code or zip code, area or locality, city,\ndistrict and state or union territory at the office space or the registered\noffice.<\/li><\/ul>\n\n\n\n<p><strong>The Following Are The Attachments\n<\/strong><strong>Which Are Required To Be Submitted Along With Form AOC-5:<\/strong><\/p>\n\n\n\n<ul><li>Proof\nof address of the office space or registered office where the book of accounts is\nmaintained. This shall include a sale deed, lease deed or rent agreement along\nwith the rent receipts. If the property on which the registered office or\noffice space is situated is rented, then standard NOC from the property&#8217;s\nlandlord shall also be submitted.<\/li><li>Copies\nof utility bills like electricity bills or the telephone bill of the office\nspace or registered office. The utility bills must not be older than two months\nfrom the date on which the form is being submitted.<\/li><li>Pictures\nof the registered office, which clearly display the external building and of\nthe inside of the office space with at least one director or a key managerial\npersonnel whose signature is affixed to the form.<\/li><li>Any\nother optional attachment.<\/li><\/ul>\n\n\n\n<p>Form AOC-5 also has a declaration by either a director\nor a key managerial personnel with their digital signature stating that they\nhave been authorised by the company&#8217;s board of directors through a resolution\nto sign the form and to declare that all the requirements and compliances\nrequired under the Companies Act of 2013 and the Companies (Accounts) Rules, 2014\nhave been complied with. The declaration shall also involve the undertaking\nthat all the information provided in the form is correct, complete and accurate\nto the knowledge of the person signing along, that there has been no\nsuppression of any material information, and that the attachments which have\nbeen submitted along the form are genuine and authentic.<\/p>\n\n\n\n<p>The\n<strong><a class=\"text-primary\" href=\"https:\/\/corpbiz.io\/learning\/director-identification-number\/\">director identification number<\/a><\/strong> or DIN or PAN of the CEO, CFO or the manager\nshall also be submitted.<\/p>\n\n\n\n<p>In\ncontrast to most forms under the Companies Rules of 2014, the contents of Form\nAOC-5 are not required to be certified by a company secretary in practice or\ncost accountant in practice or chartered accountant in practice.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Penalty_for_Non-Compliance\"><\/span>Penalty for Non-Compliance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The mandate under Section 128 of the\nCompanies Act of 2013 and Rule 2(A) of the Companies (Accounts) Rules of 2014\nis required to be followed by every company. Non-compliance with the mandate\npertaining to maintaining a book of accounts of the company will lead to\npenalties for the person put in charge to ensure compliance with the provisions\nof Section 128 for the defaulting company. It can be the CEO or CEO, managing\ndirector or whole time director. Such person shall be liable to imprisonment,\nwhich may extend to a period of one year or penalty, which may extend up to \u20b95 Lakhs but shall not be less than \u20b950,000 or both.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The MCA notified the Companies (Accounts) Amendment Rules, 2023, on 20 January 2023 to amend the Companies (Accounts) Amendment Rules of 2014. The Companies (Accounts) Amendment Rules, 2023 has amended form number AOC-5 which is attached in the Annexure to the Amendment Rules of 2023. Form AOC-5 deals with details pertaining to the address where the book of accounts is being maintained and which is required to be filed with the Registrar of Companies.<\/p>\n\n\n\n<p><strong>Also Read<\/strong>: <br><a href=\"https:\/\/corpbiz.io\/learning\/companies-authorised-to-register-amendment-rules-2023\/\">Companies (Authorised To Register) Amendment Rules, 2023<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Ministry of Corporate Affairs (MCA) notified the Companies (Accounts) Amendment Rules, 2023, on 20 January 2023 to amend the Companies (Accounts) Amendment Rules of 2014. The MCA amended the latter in the exercise of the powers conferred upon it under various provisions of the Companies Act of 2013, namely Section 128 (1) and (3), [&hellip;]<\/p>\n","protected":false},"author":47,"featured_media":53599,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[3261],"acf":{"service_id":"1"},"authorName":"Sherin Jose","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/11\/MicrosoftTeams-image-4-e1668575330329.jpg","authorDescription":"Sherin has degrees in Law and English Literature from the University of Delhi. She is adept at legal research and writing and enjoys discussing and analysing important legal developments. Her primary interests lie in Corporate, FinTech and IPR Law and she is always on the lookout for exploring new developments in the area. She is an avid reader who loves classics and contemporary fiction. She likes to travel, bake and obsess over cat videos in her free time.","postViews":3132,"readingTime":7,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/53588"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/47"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=53588"}],"version-history":[{"count":2,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/53588\/revisions"}],"predecessor-version":[{"id":53590,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/53588\/revisions\/53590"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/53599"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=53588"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=53588"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=53588"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}