Filing of financial statements in India

Financial statements of a company are necessarily required to be filed with Ministry of Corporate Affairs (MCA) annually. The form for filing such financial statements with MCA is AOC – 4. All the companies fall under this category and are compulsorily required to file form AOC – 4.However, few Companies are covered under Extensible Business Reporting Language (XBRL) and are required to upload the financial statements on MCA portal in XBRL format as per the Companies (Filing of documents & Forms in Extensible Business Reporting Language) Rules, 2015. In this case the requirement of signing under hand is not a requisite.

AOC-4 and AOC-4 CFS

According to Rule 12(1) of the Company (Accounts) Rules 2014, companies having one or more subsidiaries within or outside India will have to file AOC-4 and AOC-4 CFS with respect to its financial statements and consolidated financial statements respectively.

 Need for filing AOC-4

AOC-4 has to be filed within 30 days by every company from the conclusion of the Annual General Meeting (AGM) with Ministry of Corporate Affairs (MCA). As per company’s business activity, Form
AOC-4 has to be uploaded along with board’s report, auditor’s report and other mandatory documents. Every form has to be certified by practicing Chartered Accountant or Company Secretary.

 Fees for AOC-4

Company’s share capital determines fees for the filing of form AOC-4. Given below is the fee structure as per the nominal share capital of the company:

Nominal share capital Fee applicable
Less than 1,00,000 INR 200 per form
1,00,000 to 4,99,999 INR 300 per form
5,00,000 to 24,99,999 INR 400 per form
25,00,000 to 99,99,9999 INR 500 per form
1,00,00,000 and more INR 600 per form

 

Penalties for non-filing of form

Late filing of form AOC-4 results in the following penalties:

Number of days delayed Penalty amount for late filing
Up to 30 days 2 times of normal filing fees
30 days to 60 days 4 times of normal filing fees
60 days to 90 days 6 times of normal filing fees
90 days to 180 days 10 times of normal filing fees
180 days to 270 days 12 times of normal filing fees

 

Signing of financial statements (AOC – 4 / AOC – 4 CFS) by Board of Directors (Board)

Board has the power to approve the financial statements (AOC – 4 / AOC – 4 CFS), including consolidated financial statements, if any. Statements are signed on behalf of the Board by the,

  • Chairperson of the company where he is authorized by the Board, or
  • By two directors out of which one shall be managing director and the chief executive officer,
  • If he is a director in the company, the chief financial officer, and
  • Company secretary of the company, wherever they are appointed, or
  • In case of a one person company, only by one director, for submission to the auditor for his report thereon.

As per section 134, the auditors’ report shall be attached to every set of financial statement containing explanations or comments by the Board on every qualification, reservation or adverse remark or disclaimer made by the auditor w.r.t. the financial statements.

imagesCertification of AOC-4

As per Companies (Registration Offices and Fees) Amendment Rules, 2014, e-Form AOC-4 filed by companies, other than one person companies and small companies, under sub-rule (1) of rule 9, shall be pre-certified by a practicing professional which includes a company secretary in whole time practice.

Signing of the attachments to Form AOC- 4

Companies Act, 2013 lays down all the requirements related to all the attachments to be uploaded with form AOC-4 and their signing. Scanned copy of the financial statements & other documents are required to be uploaded on MCA portal. However, secure digital memory (SD copies) is not acceptable in case of AOC-4 only physically-signed copies are only accepted.

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