Form AOC 4 Filing (Fees, Due date, Penalty, and Importance)

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Every company maintains financial statements that provide information about its financial transactions and overall financial position. Along with these statements, a company has to mandatorily maintain records such as the auditor’s and board’s report to maintain its accountability to its stakeholders. 

They are the primary form of communication between the Board of Directors and the shareholders. A corporation thus has to disclose its financial records to the Ministry of Corporate Affairs on an annual basis. 

In that case, the MCA Form AOC 4 is used to provide financial statements. Therefore, within 30 days of the company’s annual general meeting, this form is  submitted for each fiscal year with MCA. 

In this post, we take a close look at how Form AOC 4 Filing is presented.

What Is Form AOC 4?

Form AOC 4 is a document submitted to the Ministry of Corporate Affairs (MCA) in India. This form contains the key points of the financial statement that the company must prepare and send to its shareholders. 

The company can send Form AOC 4 if it chooses not to send a copy of the financial statements, along with any consolidated financial statements, the auditor’s report, and any other documents that are legally required to be attached to the financial statements and presented to the shareholders at the annual meeting.

Who Should do Form AOC 4 Filing?

Every organization must provide financial statements using Form AOC 4 Filing.

The financial statements shall be submitted with Form AOC 4 NBFC (Ind AS) and the consolidated financial statement, if applicable, with Form AOC 4 CFS NBFC (Ind AS), for each Non-Banking Financial Company (NBFC) that is required to conform with the Indian Accounting Standards (Ind AS).

Every business subject to the provisions of Section 135(1) of the Companies Act of 2013 is required to submit a report on corporate social responsibility in Form CSR-2 as an addendum to Form AOC 4 or AOC 4 XBRL or AOC 4 NBFC (Ind AS), as the case may be, beginning with the preceding financial year (2020-2021). 

Form CSR-2, however, can be submitted separately on or before March 31, 2023, for the financial year 2021–2022.

Difference between Form AOC 4 Filing and Form AOC 4 XBRL Filing

Form AOC 4 filing is used to submit statements and other paperwork to the Registrar. 

Whereas, Form AOC 4 XBRL Filing is used to submit the financial statements in eXtensible Business Reporting Language(XBRL) format to the Registrar in relation to financial statements and other documents. Extensible Business Reporting Language” means a standardized language for communication in electronic form to express, report or file financial information by companies

What is the eligibility criterion of Form AOC 4 XBRL?

The following class of Companies shall file their financial statement with the MCA in Form AOC 4 XBRL:

1. All listed companies and their Indian subsidiaries;
2. Companies having paid-up capital of INR 5 Crores or above;
3. Companies having turnover of INR 100 Crores or above;
4. All Companies which are required to prepare their financial statements in accordance with Companies (Indian Accounting Standards) Rules, 2015. 

Importance of Form AOC 4 Filing

Financial Statements are official records of the Company’s financial performance and condition. To shareholders and investors, financial statements reveal the true state of a corporation. 

Financial statements’ primary goal is to inform a variety of stakeholders who are involved in business decisions about the financial condition, development, and changes in a company’s financial status.

Every business subject to the provisions of Section 135(1) of the Companies Act of 2013 must submit a report on corporate social responsibility in Form CSR-2 as an addendum to Form AOC 4 or AOC 4 XBRL or AOC 4 NBFC (Ind AS), as the case may be, beginning with the preceding financial year (2020-2021). 

For the fiscal year 2021–2022, however, Form CSR-2 can be submitted separately on or before March 31, 2023, following the submission of Form AOC 4 or AOC 4 XBRL or AOC 4 NBFC (Ind AS), as applicable.

Documents Required For Form AOC 4 Filing

The following papers must be submitted with Form AOC 4 Filing:

• Financial statement.
• the auditor’s reports.
• the balance sheet’s notes.
• Statement of equitable change.
• Statements of profit and loss with their remarks.
• Board-reported information.
• reports on corporate social responsibility, if any.
• AOC-one formatted subsidiary statements, if any.
• and any further necessary paperwork. 

The form must also be certified by a recognized professional, such as a licensed Chartered Accountant (CA) or Company Secretary (CS). Certified professionals are employed by several consulting websites, including Instafiling, to assist with hassle-free filing.

Fees For Form AOC 4 Filing

The following are the costs for Form AOC 4 Filing based on a company’s share capital or yearly revenue:

• Less than 1,00,000- Rs 200 per document
• 1,00,000 to 4,99,999-Rs 300 per document
• 5,00,000 to 24,99,999- Rs 400 per document
• 25,00,000 to 99,99,999-Rs 500 per document
• 1,00,00,000 or more -Rs 600 per document

Due Date and Penalty on Form AOC 4 Filing

From July 1st, 2018, submitting Form AOC 4 after the deadline will result in a penalty of Rs. 100 per day up until the date of filing.

In accordance with the Company Fresh Start Program, 2020 Form AOC 4 Filing for prior years may be submitted up to September 30, 2020, without paying late fees.

There is a penalty scale for delayed E Form AOC-4 Filing:

• Delay for up to 30 days- pay twice the standard filing fees
• Four times the usual filing fees for more than 30 days and up to 60 days
• 60 days or more and up to 90 days: six times the usual filing fees
• 90 days or more and up to 180 days: 10 times the usual filing fees
• 12 times the usual filing fees for more than 180 days and up to 270 days

Points To Remember While Form AOC 4 Filing

1. All directors shall get notice of the next board meeting at least seven days in advance, and the appropriate action should be taken.

2. In accordance with the law specified in Section 134 of the Companies Act, 2013, all financials of the company, including the consolidated financial, if any, should be signed by the chairman of the company who is authorized by the Board of directors and should be signed by any of the two directors, one of whom should be the managing director and CEO, the CFO, and the CS, or company secretary. If it’s a one-person business, the financials must be signed by only one director.

3. All shareholders, the legal heirs of a dead member, the auditor, and all of the company’s directors shall be given written or verbal notice of the annual general meeting at least 21 days in advance. The location map for the general meeting should be included in the notice of the annual general meeting.

4. The firm must create a book of accounts, which must be kept at the company’s registered office. If the business wants to maintain its books of accounts somewhere else, it must approve a board resolution and file Form AOC 5 with the Registrar of Companies.

Conclusion

From the above article, it should be clear that Form AOC 4 Filing is an essential component of your yearly compliance requirements. It is a statement of a company’s financial affairs, must be submitted annually to the Registrar of Companies (ROC).

We have attempted to cover every aspect of Form AOC 4 Filing and how to file it in this article. However, if you still need help with documents or filling out AOC forms, get in touch with our experts..

Instafiling is the best business startup consultant, offering a variety of registration services, such as GST Registration, Trademark Registration, LLP Registration, Company Registration, and Proprietorship Firm Registration.

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