# BOA in Electronic Form, Inspection & Preservation — Section 128 (continued)
## Electronic Mode Requirements
Where BOA and books & papers are maintained electronically:
1. Accessibility — Must remain accessible in India at all times.
2. Backup — Backup of BOA (even if maintained outside India) must be kept on servers physically located in India, daily.
3. Legibility — Information shall be in legible form.
4. Storage system — Proper system for storage, retrieval, display, or printout of records (as deemed appropriate by audit committee/BOD). Records may not be disposed of or rendered unusable except as permitted by law.
## Audit Trail in Accounting Software
From FY commencing on or after 1st April 2023, every company using accounting software must use software that:
- Records an audit trail of every transaction,
- Creates an edit log of changes made in BOA (with date of change), and
- Ensures the audit trail cannot be disabled.
## Annual Intimation to ROC (at time of filing FS)
Company must intimate:
- Name, IP address, and location of the service provider,
- If the service provider is outside India — name and address of the person in control of records in India,
- If records are on the cloud — the address provided by the service provider.
## Inspection by Directors — Important Nuances
| Where BOA is kept | Director's Right |
|---|---|
| Within India | Direct inspection during business hours. |
| Outside India | Director must request the company with full details of the financial information sought and the period covered; company must produce it within 15 days of request. |
Key restrictions:
- Inspection is personal — director cannot send a power of attorney, agent, or representative.
- Officers & employees of the company must assist directors during inspection.
- BOA of a subsidiary can be inspected by a director of the holding company only if authorised by a board resolution of the holding company's BOD.
## Period for Preservation
BOA together with relevant vouchers must be preserved for at least 8 years immediately preceding the relevant FY, except:
- Newer companies — If the company is less than 8 years old, BOA must be preserved for its entire existence.
- Investigation ordered — CG may direct that BOA be preserved for more than 8 years.
## Responsibility and Penalty
### Responsible Persons
- Managing Director (MD),
- Whole-Time Director (WTD) in charge of finance,
- Chief Financial Officer (CFO), or
- Any other person charged by the BOD.
### Penalty for Contravention
Fine: not less than ₹ 50,000, extendable up to ₹ 5,00,000.