SR Batliboi & Associates flags gaps in Apple GCC data backup, audit trails

The US-based technology giant did not keep a daily electronic backup of its accounting records on servers located in India between April and October last year

Apple’s India operations centre came under the scanner in its first year after SR Batliboi & Associates flagged lapses in meeting statutory requirements, The Economic Times reported.

 

According to the report, the company did not maintain daily electronic backups of its accounting records on servers located in India between April and October last year. After October 5, the global capability centre (GCC) fixed the issue by using an automated system. Auditors also said they could not confirm whether Apple kept all required audit trails as required by the law.

 

While the company’s main accounting software has an audit trail feature, it was not active for some changes made by users with high-level administrative access, the report noted. Apple did not preserve the audit trail for the year ending March 31, 2024.

 

However, the auditor clarified that in the parts of the system where the audit trail feature was enabled, they found no signs of tampering.

Daily backup mandatory

The Ministry of Corporate Affairs (MCA) has mandated that all GCCs setting up offices in India must maintain daily backups of books of account and other documents maintained electronically. The move was aimed at enhancing data integrity, security, and operational continuity.

 

According to the guidelines, a company needs to update its financial records, operational data, compliance documents, and customer data daily. These backups must be stored on servers physically located in India, even if the primary data is stored on cloud servers outside the country, and the electronic records must remain accessible in India at all times, ensuring they are usable for subsequent reference.

Apple's India operations

According to The Economic Times, Apple Operations India sources engineering equipment, rents office space, and hires engineers for hardware research and development. All the work Apple Operations India did in FY25 was for Apple’s global units, including Apple Operations International, Apple, and Apple South Asia.

 

In FY25, the company earned ₹314 crore in revenue and made a profit of ₹28 crore. The company also paid ₹137 crore as management fees to other Apple group companies and spent ₹248 crore on equipment, likely bought from those group firms.

 

Apple Operations India is 99 per cent owned by Apple Inc, with the remaining 1 per cent held by Apple Europe. Apple's other India unit, Apple India, handles sales. The company reported a profit of ₹3,196 crore on sales of ₹79,378 crore in FY25. Apple India's parent company is Apple Operations International.

Growing retail presence

The US-based technology giant is also growing its retail presence in the country, having launched several stores across key metro cities. Apple is set to open its fifth store in India at DLF Mall of India, Noida, Uttar Pradesh, today. Named Apple Noida, the store is the second in the National Capital Region (NCR) and the third to open in 2025, following Apple Hebbal in Bengaluru and Apple Koregaon Park in Pune in September 2025.