Apple’s India based Global Capability Centre has received auditor remarks over gaps in statutory compliance during its first year of operations. In its FY25 report filed with the Registrar of Companies, the auditor said Apple Operations India did not maintain daily electronic backups on servers located in India from April to October 5, 2024. The company put an automated system in place after that date to meet the legal requirement.
The auditor also pointed out issues with audit trail records. Although the main accounting software has an audit trail feature and it worked throughout FY25 for all recorded transactions, the feature was not enabled for changes carried out using privileged or administrative access. The audit trail for the year ended March 31, 2024 was also not preserved as required. The auditor said the company could not provide enough evidence regarding the functioning of the audit trail feature in certain third-party software because it did not have the necessary service organisation control reports.
According to the auditor, there was no sign of tampering where the audit trail was enabled, but the management could not determine whether the feature was active for all relevant transactions or if any tampering occurred in systems where evidence was unavailable. Daily backup and audit trail rules were introduced by the government to improve transparency and reduce fraud and risk. Business intelligence expert Mohit Yadav said missing backups and unverifiable trails in a unit handling sensitive R and D work indicate operational immaturity.
Regulatory filings show Apple Operations India handled engineering equipment procurement, facility leases, hardware R and D support and failure analysis for group companies abroad. The unit posted a net profit of ₹28 crore on revenue of ₹314 crore in FY25. It paid ₹137 crore in management fees to related parties and made capital expenditure of ₹248 crore, mostly for equipment sourced from group firms. Apple Operations India is owned 99% by Apple Inc and 1% by Apple Europe. Apple’s separate India sales entity reported a net profit of ₹3,196 crore on sales of ₹79,378 crore in the same fiscal year.
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