The interplay between the company and the stakeholders is quite delicate and prone to dispute. Thus, it is important for companies to remain transparent with their stakeholders from a financial’s standpoint.
There is a requirement under the Companies Act, 2013 that mandates companies to disclose their fiscal details with MCA. These details include Financial Statements, disclosures, Board’s report, and the Auditor’s report. AOC 4 form is used for this purpose. Besides, the companies are also required to file AOC 4 CFS for disclosing consolidated financial statements with authority.
Who needs to file AOC 4 form with RoC?
The given entities are needed to file AOC 4 XBRL. (Note: XBRL is an extensible business reporting language used for electronic financial and business reporting)
- Listed companies and their Indian subsidiaries
- Companies having a capital of 5 crores or above.
- Companies having a turnover of 100 crores or more.
- Companies that come under Companies Rules 2011
Companies Act 2013 norms for the filing of financial statements
Companies Act 2013 has laid down following norms pertaining to the filing of financial statements with the ROC:
|Company’s Position||Filing of financial statement with the RoC|
|Financial statement received the clearance at AGM in addition the consolidated financial statements and documents attached with the same.||Within thirty days of the company’s AGM along with fees as per section 403. Please note that in case of OPC, the said timeline has been capped at 180 days from the closure of the FY.|
|In case of an adjourn meeting||Within thirty days of timeline of the adjourned AGM along with fees/ additional fees as recommended by the Act.|
|If financial statements fails to received the approva||Within thirty days of the company’s AGM. Please note that the financial statement attached with the necessary enclosures will be considered provisional till the duration the approved financial statements are filed.|
|If AGM is not held||Within thirty days from the company’s AGM along with the fees/additional fees recommended by the Act. Please note that the said statement along with necessary enclosures and the reason for not convening the AGM have to be filed|
30th Sep of the given assessment year is last date for holding the annual general meeting. Post the said date; entities have 30 days timeline to file form AOC 4 with MCA. This implies that the said from should be filed on or before by the Oct 30 of the given assessment year.
Key Facts to Ponder while Filing AOC-4 Form
Segment I- Details and information w.r.t Balance sheet (Part A)
- Make sure to add CIN (Company Identification Number)
- Upon clicking the prefill button, you will come across the auto prefilled page relating to the company’s details such as name, date of incorporation, members, authorized capital, so on. Make sure these fields reflect the correct information.
- Make sure to fill up the Start and End date of the FY in the relevant fields.
- Enter the Date of AGM in which the financial statements and Boards’ report received the approval of the BODs
- Make sure to add a date on which auditors had enclosed their signature on the financial statements.
- Provide confirmation about the AGM meeting along with the date on which it took place.
- In the case of a subsidiary entity, make sure to enclose the details of the same and its holding company. Besides, confirm the applicable provision of the Companies Act, 2013 that laid down the foundation of the subsidiary entity.
- Enter Auditor’s details such as name, membership number. The same is true for auditor firms as well.
- Aptly add the type of company and the applicability of Schedule III of The Companies Act 2013*.
- Schedule III of the Companies Act 2013 facilitates the format relating to the financial statements as per the Accounting Standards (AS) and Indian Accounting Standards under its Division I and Division II, respectively.
- Add details relating to the consolidated financial statements and management of books in digital form.
Segment I- Information & Particulars w.r.t Balance sheet (Part B)
Part B entails information relating to the balance sheet and the financial aspects of the same. Make sure said information is filled in aptly.
Segment II- Information and Particulars in respect of Profit & Loss Account
Enter Profit & Loss Account and the financial parameters in this section
Segment III- Reporting of Corporate Social Responsibility
This is an essential part of the AOC 4 form. Here, you must enter Applicability of Corporate Social Responsibility in accordance with Section 135 of the Companies Act 2013. Besides, the segment also seeks information relating to turnover and net worth.
Enter average overall company’s profit for the preceding three FY in INR. Besides, make sure to add the CSR expenditure for the last three years.
In the tabular format of this section, make sure to add the spending activity accordingly.
Add the details of the finance implementing agencies, if applicable
Add confirmation relating to the submission of the Enclosure of Responsibility statement of the CSR committee on implementation and monitoring of CSR policy to the Boards’ report.’
Segment IV- Disclosure about related party transactions
It is a vital section of the AOC 4 form as it seeks the inclusion of detail of contract drawn between company and third-party based onarm’s length and non-arm length transaction.
The arm length transaction essential refers to a business contact that sets out independent liabilities and duties of concerned parties.
Segment V- Auditor’s Report
Add CAG’s recommendation/report for the audit report u/s 143 of the companies Act, 2013, if any. It is mandatory for the government-driven entity.
Besides, make sure to add Auditor’s negative remark and the CARO’s applicability, if any.
Segment VI- Miscellaneous
This section covers two critical sections as shown below:
- Applicability of secretarial audit
- Attachment of detailed disclosure relating to report of the Directors as per Section 134(3)
Requirement for Certifying AOC 4 Form
- A declaration has to be furnished by the CEO/CFO/Director confirming that all the details enclosed in the form are valid and adhere to the relevant law.
- The form should enclose the digital signature and DIN of the Director and PAN of the CEO/CFO/manager.
- The full-time practicing CA/CS/Cost accountant must provide a declaration confirming the said professionals have verified the attached enclosures. The declaration must also assure that the said professionals have thoroughly examined the information and certified the same for legitimacy.
- The practicing professional must provide their membership number and the status i.e. fellow or associate.
Fees for filing AOC 4 form
The applicable fees taking share capital into consideration are as follows;
|Nominal Share Capital||Fee applicable|
|>Rs 1,00,000||Rs 200/ document|
|Rs 1,00,000 to Rs 4,99,999||Rs 300/document|
|Rs 5,00,000 to Rs 24,99,999||Rs 400/document|
|Rs 25,00,000 to Rs 99,99,999||Rs 500/document|
|Rs 1,00,00,000 or more||Rs 600/document|
For company lacking share capital Rs 200/document will be the fees.
Late fees pertaining to the filing AOC 4 form
In case of deferred filing the balance sheet/ financial statement/ annual returns the given fee structure would come to effect:
|Period of Delay||Additional fee payable|
|Delay beyond the duration cited u/s 137(1) of the Act – Due dates to file AOC 4 (within thirty days of the AGM’s date)||Rs 100/day|
In case of deferred filing relating to balance sheet/ financial statement/ annual returns, the following fee structure shall be applicable:
|Period of Delay||Additional fee payable|
|Up to 30 days||2 x of standard filing fees|
|More than 30 days & up to 60 days||4 x standard filing fees|
|More than 60 days & up to 90 days||6 x standard filing fees|
|More than 90 days & up to 180 days||10 x standard filing fees|
|More than 180 days||12 x standard filing fees|
Penalty for non-filing of AOC 4 form
|Defaulting Party||Penalty Imposed|
|Company||Rs 1000 for per day of default. The max penalty can go up to Rs 10 Lakhs|
1. Managing Director/CFO|
2. In case of the absence of said officials-Any other Director who has the board’s approval.
3. In case such Director is not available-All directors of the company
|Rs 1 Lakh + Rs 100 for each day of default. The max penalty can go up to Rs 5 lakhs.|
It is an utmost requirement for the companies to file AOC 4 form with MCA on time, not for averting penalties but to establish an amicable relationship with the potential stakeholders. The timely and uninterrupted filing of the AOC 4 form reflects the company’s intention to remain transparent on the financial front.
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