An Overview of Form AOC-4

The Board of Directors and shareholders of a company can evaluate the firm's performance by referring to its financial statements. These financial statements must be submitted to the Registrar of Companies using MCA Form AOC-4 for each financial year. The company is required to file this form within 30 days of its Annual General Meeting. Under the Companies Act of 2013, all Indian registered companies must file Form AOC-4 annually. Failure to submit the required documents on time may result in penalties or fines.

To maintain transparency with stakeholders, financial statements, disclosures, the Board’s report, and the Auditor’s report must be included. Financial statements act as a primary mode of communication between the Board of Directors and shareholders. The financial statements are submitted to the Registrar of Companies (ROC) through Form AOC-4 each fiscal year. If the company submits consolidated financial statements, it must file Form AOC-4 CFS.

Eligibility for Filing Form AOC-4

All businesses are required to file Form AOC-4 along with their financial statements. If consolidated financial statements are applicable, companies must submit Form AOC-4 CFS.

Companies subject to Section 135(1) of the Companies Act 2013 must attach a Corporate Social Responsibility report in Form CSR-2 to Form AOC-4 or Form XBRL (Ind AS), as required.

As per the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Regulations, enterprises meeting specific criteria must submit financial statements in XBRL format. The following categories of businesses must file their financial statements using e-Form AOC-4 XBRL:

1.       Indian companies listed on the stock exchange and their subsidiaries

2.       Companies with a minimum capital of INR 2 to 5 crores

3.       Companies with annual revenue of INR 100 crores or more

4.       Companies complying with the Companies (Indian Accounting Standards) Regulations, 2015

For filing financial statements with the ROC, the Companies Act of 2013 mandates the following deadlines:

1.       Within 30 days of the Annual General Meeting (AGM), including consolidated financial statements and required documents

2.       Within 30 days of a postponed AGM

3.       If financial statements are not approved within 30 days of the AGM, preliminary documents must be filed until final approval

4.       In case the AGM is not held, financial statements must be filed within 30 days from the expected date of the AGM, along with justifications for the delay

Advantages of Filing Form AOC-4

Filing Form AOC-4 provides several benefits:

1.       Financial statements serve as formal records of a company's financial position and operations.

2.       Investors and shareholders gain clarity regarding a company's actual financial status.

3.       The Board of Directors primarily communicates with shareholders through annual financial statements.

4.       Financial statements, along with the Board’s Report and Auditor’s Report, provide transparency on financial activities.

5.       Financial statements offer key insights to stakeholders, investors, and financial institutions for decision-making.

Tips for Filling Form AOC-4

While submitting Form AOC-4, keep the following points in mind:

1.       Enter the Company Identification Number (CIN). This can be accessed using the company name or registration number.

2.       Use the pre-fill option to automatically populate details such as company name, address, and incorporation date. Email addresses can be modified if necessary.

3.       Enter the financial year start and end dates.

4.       Provide details of the Board of Directors meeting in which the financial statements were approved.

5.       Maintain records of the auditor’s report sign-off date.

6.       Record the AGM date if it was held.

7.       If the company is a subsidiary, mention the holding company details. If it is a holding company, provide details of its subsidiaries.

8.       Auditor details, including name, membership number, and registration number, must be included.

9.       Indicate whether the company follows Schedule III of the Companies Act 2013.

10.    Verify computerized accounting and financial consolidation details.

11.    Fill in balance sheet details accurately.

12.    Provide financial details related to the income statement, including a complete profit and loss statement.

13.    If applicable, report corporate social responsibility (CSR) details as per Section 135 of the Companies Act 2013.

14.    Disclose related party transactions as per Part D of the form.

15.    Attach the Auditor’s Report as per Section 143 of the Companies Act 2013.

16.    Ensure the form is digitally signed by an authorized person such as a Director, CEO, CFO, or Company Secretary.

Due Dates for Filing Form AOC-4 (FY 2022-23)

The due date for filing Form AOC-4 for the financial year 2022-23 is October 29, 2023, or within 30 days of the AGM. For One Person Companies (OPC), the deadline is within 180 days from the end of the financial year.

Penalties for Late Filing of Form AOC-4

1.       A penalty of INR 100 per day applies for late submission beyond the due date.

2.       Under the Company Fresh Start Program, prior years’ Form AOC-4 could be filed without late fees until September 30, 2020.

3.       Additional penalties apply based on the duration of the delay:

o    Up to 30 days: 2x the normal filing fee

o    30-60 days: 4x the normal filing fee

o    60-90 days: 6x the normal filing fee

o    90-180 days: 10x the normal filing fee

o    180-270 days: 12x the normal filing fee

4.       Directors, Managing Directors, or CFOs may face legal action, fines, or imprisonment for prolonged non-compliance.

Validation and Accreditation

The accuracy of the details in Form AOC-4 must be certified by a Director, CEO, CFO, or Company Secretary. A full-time practicing Chartered Accountant, Cost Accountant, or Company Secretary must also verify the form, providing their membership number and professional status.

To ensure compliance and avoid penalties, companies should adhere to the prescribed timelines and procedures when filing Form AOC-4.

For assistance with Form AOC-4 filing and related compliance services, contact Fastzeal today!