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Form AOC 4 and MGT 7 - filing and penalty

Transparency and self-compliance are the pillars of success of a company in long run. Financials of a company is not an internal cause of concern, it is also very much important for the public to assess the company and its strength. It helps the company to get easy finance for long term growth which will result in increased customer belief.

Companies Act 2013 and related rules have specific detailed provisions for filing financials of a company. According to the act, Registrar of Company is the authority for filings. Financials of a company are required to be filed with Registrar of Companies every year in addition to other statutory filings with stock exchanges for listed companies.

In this article we will look on the filings of financials of a company and consequences of non-filing.

Every registered company registered under companies Act need to file financial statements in e-form AOC 4 within 30 days, which includes Directors Report along with proper attachments and annual report in e-form MGT 7 within 60 days from the conclusion of its annual general meeting.

Annual Return filing in form MGT 7

Every company except once person company is required to conduct annual general meeting within the prescribed time.

As per section 92<4> it is mandatory that a company shall a copy of the annual return in file e-form MGT & within 60 days from the date of Annual general meeting with the Registrar of Companies along with normal fees.

Annual return in form MGT 7 consists following

  1. Balance sheet and profit and loss account.

  2. Compliance certificate, registered office address.

  3. Shareholders list and structure of shareholding.

  4. Details of transfer and transmission of securities.

  5. Shares and debentures details to be attached

  6. Changes in directorship.

Every company shall prepare and file annual return, but a company which have a paid up share capital of ten crore rupees or more or gross turnover of fifty crore or more, shall be certified by a company secretary in practice and his certificate in Form MGT 8 to be attached.

If a company fails to file within the prescribed time without sufficient reason, the penalty is Rs 100 per each day of default subject to a maximum of 5,00,000. In addition to this the company and every officer in default shall be liable to a penalty of Rs 50000/- and in case it is a continuing failure,

A director also can be punished with disqualification if a company in which he is a director has not filed Form MGT 7 for 3 consecutive years.

Following companies are required to file Form AOC 4 XBRL

  1. Indian listed companies and its subsidiaries

  2. Companies with capital of 5 crores or turnover of 100 crores or more.

As per the provisions of section 137 of companies Act, the form should be accompanied by a declaration by Director/ Manager/ Secretary/ CEO/ CFO that all information provided in the form is true and correct and is in compliance with the law. Also a verification statement by a practicing Company secretary/ chartered accountant/ cost accountant that he verified the documents and certification of information that true, correct and complete.

For default the company will be penalised for Rs 1000 for every day of default subject to max of INR 10 lakhs. In addition to that the officer in default Rs 1 lakh and Rs 100 for each day of default subject to max INR 5 lakhs.

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