Guidance on Compliance with Indian Companies Act 2014 – Rule 3(5)

Summary:

I wanted to seek Oracle advice regarding compliance with the Indian Companies Act of 2014 (and its recent amendments) for companies that have operations in India but whose Fusion ERP SaaS data center is not located in India.

Specifically, Rule 3(5) of the Act states that companies must ensure a proper system for storing, retrieving, and managing electronic records as deemed appropriate by the Audit Committee or Board. It further mandates that backups of books of account and other records maintained electronically—especially if stored outside India—must also be kept in servers physically located in India on a daily basis.