Physical attendance can be replaced by any electronic means of attendance marking only if it is permitted by the appropriate (labor) authorities. You can get approval provided you submit the copies of the reports extracted from the system when the same contains the details required as per the rules prescribed. But for the convenience and accurate recording of workers' arrival and departure, we all keep biometric or other forms of attendance marking. Along with it, we will keep physical attendance in the prescribed form. In the absence of approval to maintain soft copies of reports, the Inspectors will depend only on physical forms, and they will ask for that only. Therefore, it is advisable that you maintain both.