AOC-4

Demystifying AOC-4: Filing Requirements, Time Limit, and Penalty Provisions

The filing of Annual Financial Statements is a crucial compliance obligation for companies, and the AOC-4 form plays a central role in this process. Understanding the objectives, requirements, and provisions related to AOC-4 is essential for smooth and timely submission. In this blog, we will explore the key aspects of AOC-4, including its filing requirements, time limits, information provided, attachments, path of filing, and penalty provisions. By gaining a comprehensive understanding of AOC-4, companies can ensure compliance and avoid potential penalties.


Objective

The objective of the AOC-4 form is to promote transparency and accountability in the financial statements of a company. By requiring companies to file this form, the regulatory authorities aim to ensure that accurate and reliable financial information is disclosed to stakeholders, including shareholders, creditors, and regulatory bodies. The form serves as a means to assess the financial health, performance, and compliance of the company. It enables investors and other interested parties to make informed decisions based on the company's financial statements, thereby enhancing trust and confidence in the business. Additionally, the AOC-4 form helps regulatory authorities in monitoring and regulating the financial activities of companies, contributing to the overall integrity and stability of the corporate sector.


Filling requirement

To fulfill the filing requirements of AOC-4, the company is obligated to submit a copy of its financial statements that have been duly adopted by its members. These financial statements should be filed in electronic form, specifically e-form AOC-4 or AOC-4(CFS), as per the provisions outlined in Section 137(1) of the Companies Act, 2013.


In addition to the financial statements, the company is also required to attach all the necessary documents that are mandated to be included with the financial statements. These documents may include auditor's reports, board reports, profit and loss statements, balance sheets, cash flow statements, and any other relevant statements or schedules.


By adhering to these filling requirements and ensuring the submission of accurate and complete financial statements, the company demonstrates its commitment to transparency and compliance with statutory regulations. It allows stakeholders and regulatory authorities to access reliable financial information, assess the company's performance, and make informed decisions based on the disclosed statements.

Time Limit


As per the provision stated in Section 137(1) of the Companies Act, 2013, the AOC-4 form should be filed within thirty days from the date of the general meeting. This time limit is applicable for submitting the copy of the financial statements and the required attachments to the Registrar of Companies (RoC).


It is important for companies to adhere to this time limit to ensure timely compliance with the statutory requirement. Failing to file within the specified period may result in penalties or other legal consequences. Therefore, companies should diligently prepare and finalize their financial statements in a timely manner, allowing sufficient time for review, adoption by the members, and subsequent filing of the AOC-4 form within the prescribed thirty-day window.


By meeting the time limit for filing, companies demonstrate their commitment to regulatory compliance, transparency, and timely dissemination of financial information to stakeholders and regulatory authorities. It also enables smooth and efficient processing of financial data, facilitating accurate assessments of a company's financial position and performance.



Information Provided

The AOC-4 form requires the submission of various information pertaining to the company's financial statements and related details. The following information is typically provided in this form:


(a) General Information:

  • Company Identification Number (CIN)

  • Company Name

  • Registered Office Address

  • Email ID

(b) Financial Year:

  • Mention the financial year to which the financial statements relate.

(c) Date of Board Meeting:

  • Specify the date of the board meeting in which the financial statements and board report were approved.

(d) Annual General Meeting (AGM):

  • Provide details of the AGM held, including the date on which it was conducted.

(e) Subsidiary Details:

  • Furnish information about any subsidiary companies of the reporting company.

(f) Auditor Details:

  • Provide details of the auditors appointed by the company.

(g) Industry Type:

  • Specify the type of industry in which the company operates.

(h) Specific Information:

  • Indicate whether consolidated financial statements are required or not.

  • State whether the company maintains books of account and other relevant documents in electronic form.

(i) Balance Sheet Parameters:

  • Provide financial parameters related to the balance sheet, such as net worth, loans, inter-corporate borrowings, debentures, interest, inter-corporate deposits, and other relevant details.

(j) Share Issuance:

  • If the company has issued any shares during the reporting period, provide the details of the share issuance.

(k) Profit and Loss Account:

  • Include financial parameters related to the company's Profit and Loss Account.

(l) Principal Products or Services:

  • Describe the principal products or services offered by the company.

(m) Corporate Social Responsibility (CSR):

  • Disclose the applicability of CSR provisions, net worth, turnover, average net profit, and provide details of CSR expenditure, projects, and reports.

(n) Related Party Transactions:

  • Make disclosures about related party transactions undertaken by the company.

(o) Auditor's Report and CARO Applicability:

  • Include details about the auditors, their report, and the applicability of the Companies (Auditor's Report) Order (CARO).

(p) Secretarial Audit Applicability:

  • Specify whether secretarial audit is applicable to the company or not.


By providing the required information accurately and comprehensively in the AOC-4 form, companies ensure compliance with regulatory requirements and facilitate transparency in their financial reporting.


Attachments 


When filing Form AOC-4, certain documents are required to be attached along with the form to provide comprehensive information and support the financial statements. The following are the typical attachments required:


  1. Financial Statements: Attach a copy of the financial statements of the company for the relevant financial year. This includes the balance sheet, profit and loss statement, cash flow statement, and any other statements or schedules forming part of the financial statements.

  2. Board Report: Include a copy of the board report approved by the board of directors. The board report provides an overview of the company's operations, performance, and other relevant information for the financial year.

  3. Auditor Report: Attach a copy of the auditor's report that accompanies the financial statements. The auditor's report provides an independent assessment of the company's financial statements and verifies their accuracy and compliance with accounting standards.

  4. Secretarial Audit Report (If applicable): If the company is required to undergo a secretarial audit as per the provisions of the Companies Act, attach a copy of the secretarial audit report. The secretarial audit report evaluates the company's compliance with applicable laws and regulations.

  5. Company CSR Policy and CSR Activity Details: If the company is mandated to comply with Corporate Social Responsibility (CSR) provisions, attach a copy of the company's CSR policy along with details of the remaining CSR activities undertaken during the financial year.


By attaching these documents to Form AOC-4, companies provide a comprehensive overview of their financial performance, compliance, and corporate social responsibility activities. It ensures transparency and enables stakeholders, regulatory authorities, and the public to review and assess the company's operations and adherence to regulatory requirements.


Path of Filling 


The path for downloading and uploading Form AOC-4 on the Ministry of Corporate Affairs (MCA) portal is as follows:


For Downloading:


  1. Visit the MCA website.

  2. Navigate to "MCA Services" on the homepage.

  3. Select "e-filing" from the dropdown menu.

  4. Under "Company Forms Download," click on "Download Form AOC-4."

  5. The form will be downloaded in the desired format (e.g., PDF, Word).


For Uploading:


  1. Visit the MCA website.

  2. Log in using your registered credentials.

  3. Go to "MCA Services" on the homepage.

  4. Select "e-filing" from the dropdown menu.

  5. Choose the option to "Upload AOC-4" for filing the form.

  6. Follow the instructions and guidelines provided on the portal to complete the uploading process.

  7. Attach the necessary documents and fill in the required details as per the form's instructions.

  8. Once the form is uploaded successfully, make the necessary payments, if applicable, and submit the form electronically.


It's important to note that the specific steps and options on the MCA portal may be subject to change or updates. Therefore, it is recommended to visit the official MCA website and refer to the latest guidelines and instructions provided by the Ministry for accurate filing of Form AOC-4.


Penalty Provision


As per the provisions of the Companies Act, 2013, the penalty provisions for failing to file the copy of the financial statements within the specified time frame are as follows:


  1. Company Penalty: If a company fails to file the copy of the financial statements before the expiry of the specified period, it shall be liable to a penalty of ten thousand rupees.

  1. Continuing Failure Penalty for the Company: In case of a continuing failure to file the financial statements, an additional penalty of one hundred rupees per day will be imposed for each day during which the failure continues. The maximum penalty for the continuing failure is limited to two lakh rupees.

  1. Penalty for Managing Director, Chief Financial Officer, and Directors: The managing director and the Chief Financial Officer (CFO) of the company, if any, will be held responsible for compliance with filing the financial statements. If they fail to comply, they shall be liable to a penalty of ten thousand rupees. In case of a continuing failure, an additional penalty of one hundred rupees per day will be imposed after the first day of failure. The maximum penalty for the continuing failure is limited to fifty thousand rupees.


It is important for companies and their responsible officers to adhere to the filing requirements within the prescribed timelines to avoid penalties and ensure compliance with the Companies Act, 2013.

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