Form AOC 4 and MGT 7 are annual compliances which cannot be neglected by registered companies operating in India. Registrar of Companies (ROC) is the government body which authorized to monitor compliance. As per companies act 2013, AOC 4 and MGT 7 Form have to be filed every year within 30 and 60 days respectively from the conclusion of the Annual General Meeting (AGM) held by the companies.
Adhering to the laws under Section 403 of Companies Act 2013, the time limit of 270 days were allotted to the companies for filing the documents with Registrar of Companies (ROC) along with the penalty. The provision has been amended and the 270 days deadline has been removed from the scenario. Now the companies are required to furnish all the documents within the time limit prescribed by the government.
MGT 7 – Annual Return Filing by Companies
As directed by Law, every registered firm in the country has to file a copy of Annual Returns affixed to Form MGT 7. The form should be filed properly with accurate details and should be submitted within 60 days from the date of the Annual General Meeting. A nominal fee is charged for compliance.
Penalty for Late or Non-filing of MGT 7 Form
If any company does not file Form MGT 07 on time, Rs. 100 per day is charged by the companies. Each key member of the company and who is in the default shall be deemed for paying the penalty of Rs. 50,000 and also the late fee of Rs. 100 per day if the default continues. The penalty is subject to a maximum of Rs. 5,00,000.
Following the notice received from Registrar of Companies, the penalty is levied after due judgment needs to paid otherwise additional fees paid are sufficient.
In case if the form is not filed for 3 consecutive years then the Director of the Company is disqualified and is barred from performing his duties as a key member of the company.
AOC 4 Form – Filing of Financial Statements
Adhering to the laws of Companies Act 2013, every company working under Indian premises has to present its ‘annual financial statements’ to legal authorities affixed with Form AOC 4. The form along with the company’s financial statements should be filed within 30 days from the conclusion of the Annual General Meeting. A nominal fee is charged for compliance.
Penalty for Late or Non-filing of AOC 4 Form
There is a penalty of Rs 100 per day on delay in filing Form AOC 4. Apart from that, the penalty of Rs. 1000 per day of default is charged from the company which can go maximum up to Rs. 10,00,000.
Director and the Chief Financial Officer of the company (in the absence of both the Director and CFO) and the other director in charge assigned by the Board who is also responsible to comply with the provision. All the mentioned key profiles are liable to pay the penalty of Rs. 1,00,000 for failure in filing AOC 4 Form. If the failure continues then the penalty of Rs. 1000 per day is levied which can go up to the maximum of Rs. 5,00,000.