The process of annual filing for companies is a critical aspect of compliance with regulatory requirements. Two essential forms, AOC-4 and MGT-7, play a pivotal role in this process. These forms are used to report financial statements and annual returns to the Registrar of Companies, ensuring transparency and accountability in the corporate world.
As the annual filing deadline approaches, it becomes imperative for companies and professionals to have a comprehensive understanding of these forms, including their applicability, due dates, penalties for non-compliance, signing authorities, fees, and other essential details. This guide aims to provide a detailed overview of Forms AOC-4 and MGT-7, shedding light on their significance in the corporate compliance landscape.
Key Details of Forms AOC-4 and MGT-7:
| Particulars | Form AOC-4 & [i]AOC-4 CFS | Form AOC-4 XBRL | Form MGT-7 | Form MGT-7A |
| Section Applicable | Section 129(3), 137 | Section 137 | Section 92(1) | Section 92(1) |
| Rules Applicable | Rule 12(1) of the Companies (Accounts)
Rules, 2014 |
Rule 12(2) of the Companies (Accounts) Rules, 2014 read with Companies (Filing of documents and forms in Extensible Business Reporting Language) Rules, 2015 | Rule 11(1) of the Companies (Management and Administration) Rules, 2014 | Rule 11(1) of the Companies (Management and Administration) Rules, 2014 |
| Applicability | Every Company | Certain Class of Companies | Every Company other than OPC and [1]Small Company | Every OPC and small company |
| Purpose | Filing of Financial Statements with Registrar of Companies | Filing of Financial Statement with Registrar of Companies [ii]subject to Applicability | Filing of [iii]Annual Return with Registrar of Companies | Filing of Annual Return with Registrar of Companies |
| Due Date | Within 30 Days from the date of AGM
Within 180 Days of Closure of Financial Year in case of OPC u/s 137(1) |
Within 30 Days from the date of AGM | Within 60 Days from the date of AGM | Within 60 Days from the date of AGM |
| Penalty | Non filing of AOC-4 or belated filing of AOC-4 results in huge penalties. The penalty for belated or non-filing of form AOC 4 w.e.f. 30th June 2018 is Rs 100 per day in default. | Non filing of MGT 7 / 7A or belated filing of MGT 7 / 7A results in huge penalties. The penalty for belated or non-filing of form MGT 7 / 7A w.e.f, 30/06/2018 is Rs 100 per day in default. | ||
| Signing Authority | A. Small Companies
Small Companies having paid up capital of Rs. 2 Crores and turnover of Rs. 20 crores in the previous year does not require practicing professional certification. B. For all other Companies AOC 4 needs to be duly signed by the Director and certified by a practicing professional before uploading. |
1. MGT-7 needs to be duly signed by the company and the practicing professional before uploading.
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MGT-7A applicable for small companies that do not need an auditor signature. It can be uploaded by a director of the company with DIN. | |
| i. Company Signature
Under declaration section, Director identification number (DIN) of the director; or PAN of the manager or CEO or CFO. ii. Practicing Professional Signature Signed by either a) Chartered Accountant (CA in whole time practice) or b) Cost Accountant (ICWA in whole time practice) or c) Company Secretary (CS in whole time practice) |
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| Fees | [iv]Annexure A | |||
| Form Download Link | https://www.mca.gov.in/MinistryV2/companyformsdownload.html | |||
i CFS means consolidated financial statements. AOC 4 CFS is the e form for the companies required to prepare consolidated financial statements as per 129(3) of companies act 2013. Companies having 1 or more subsidiaries within, or outside India will have to file AOC 4 and AOC 4 CFS.
ii Small company’’ means a company, other than a public company.
(i) paid-up share capital of which does not exceed fifty lakh rupees, or such higher amount as may be prescribed which shall not be more than 10 [ten crore rupees]; and
(ii) turnover of which as per profit and loss account for the immediately preceding financial year does not exceed two crore rupees or such higher amount as may be prescribed which shall not be more than 100 [one hundred crore rupees:]
iii Subject to Applicability:
1. Every Listed Company and their Subsidiaries
2. Every Company having Paid-up Capital of Rs. 5 Crores & Above
3. Every Company having Turnover of Rs. 100 Crores & Above
iv Annual Return basically contains principal business activities, particulars of its associate, subsidiary, holding companies, shareholding pattern, details of share capital, meeting of members, board, committee meetings (if any), remuneration of directors as on the closure of financial years i.e., 31st March.
vAnnexure A Fee for filing (in case of company having share capital)
| Nominal Share Capital | Fee applicable |
| Less than 1,00,000 | Rupees 200 |
| 1,00,000 to 4,99,999 | Rupees 300 |
| 5,00,000 to 24,99,999 | Rupees 400 |
| 25,00,000 to 99,99,999 | Rupees 500 |
| 1,00,00,000 or more | Rupees 600 |
Fee for filing (in case of company not having share capital) is Rupees 200
Additional fee:
Following table of additional fees shall be applicable for delays in filing of annual returns or balance sheet/financial statement under the Companies Act, 1956 or the Companies Act, 2013 beyond 30/06/2018.
| Sl. No. | Period of delay | Additional fee payable (in Rs.) |
| 01 | Delay beyond period provided under Section 92(4) of the Act | 100 per day |
| 02 | Delay beyond period provided under Section 137(1) of the Act | 100 per day |
Conclusion: In conclusion, annual filing forms AOC-4 and MGT-7 are integral components of corporate compliance, ensuring that companies report their financial statements and annual returns accurately and on time. Understanding the nuances of these forms, their applicability, and the associated penalties is crucial for businesses to maintain transparency and meet legal obligations. As the annual filing deadline approaches, companies and professionals must stay vigilant, follow the prescribed timelines, and seek professional guidance to navigate the complex landscape of corporate compliance effectively.
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Disclaimer: This article provides general information existing at the time of preparation and we take no responsibility to update it with the subsequent changes in the law. The article is intended as a news update and Affluence Advisory neither assumes nor accepts any responsibility for any loss arising to any person acting or refraining from acting as a result of any material contained in this article. It is recommended that professional advice be taken based on specific facts and circumstances. This article does not substitute the need to refer to the original pronouncement
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