Books to be maintained

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Rajesh G Prajapati (Querist)
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26 December 2009 Company is having SAP for maintaing books of accounts.Under 3CD report it is compulsory to mention books of account maintained and examined under clause 9a & 9b.As there is not books are maintaining in SAP seperately except Cash book then what will be the remarks under this caluse.
Is there any standard wordings of any company having SAP who have mentioned in 3CD report.

Rajesh G Prajapati

Rajesh G Prajapati (Querist)
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29 December 2009 please reply

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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18 July 2024 In the context of using SAP (or any other ERP system) for maintaining books of accounts, and specifically for reporting under clause 9a and 9b of Form 3CD, here’s how you might approach it:

### Clause 9a - Books of Account Maintained

Clause 9a of Form 3CD requires a declaration regarding the maintenance of books of accounts. In the case where SAP is used comprehensively for recording financial transactions, you can make the following remarks:

- "Books of accounts are maintained electronically in SAP ERP software."
- "Financial transactions are recorded and maintained in SAP ERP system."
- "The company's financial records are managed and maintained using SAP ERP."

### Clause 9b - Books of Account Examined

Clause 9b pertains to the examination of books of accounts. Since SAP is used as the primary tool for maintaining records, the remarks could state:

- "The books of accounts maintained in SAP ERP software have been examined."
- "Financial records in SAP ERP system have been subjected to audit and examination."

### Standard Wordings Example

Here’s an example of how these remarks could be structured:

**Clause 9a:**
"The books of accounts are maintained electronically in SAP ERP software, which records all financial transactions of the company."

**Clause 9b:**
"The books of accounts maintained in SAP ERP software have been examined and audited by [name of the auditor/firm] as per applicable auditing standards."

### Additional Considerations

- **Auditor’s Verification:** Ensure that the auditor verifies and confirms the accuracy and completeness of financial data maintained in SAP during the audit process.
- **Internal Controls:** Describe any internal controls implemented within SAP to ensure data integrity and reliability.
- **Compliance:** Ensure compliance with the specific requirements of Form 3CD and any additional reporting requirements under the Income Tax Act, 1961.

These remarks should reflect the specific use of SAP for maintaining financial records and demonstrate that the system is compliant with auditing and reporting standards. If in doubt, consulting with your auditor or a tax professional who is familiar with SAP implementations in accounting would be beneficial to ensure accurate reporting.

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