The shareholders and directors evaluate a company's performance based on annual financial statements. Form AOC 4 is used for filing the financial statement by the company for each financial period with the Registrar of Companies. This blog reveals significant aspects regarding AOC 4, its due date, the fee for filing the form, and the penalty if it is not filed within a specified period.
Form AOC 4 filing involves submitting financial statements annually by specified entities, ensuring legal compliance and accountability. It includes deadlines, applicable fees, and penalties. Delayed filings incur late fees and potential penalties, underscoring the importance of timely certification and submission.
What is AOC 4?
Companies are required to file Form AOC 4 for filing the financial statement with the Registrar of Companies in each financial year. It is essential to file this form by the company within 30 days of its AGM (Annual General Meeting).
Who is Required to Furnish AOC 4?
Every company must file Form AOC 4 and annual accounts. Each NBFC (Non-Banking financial company) needed to follow the accounting standard prescribed by the Indian government shall file Form AOC 4 along with annual accounts and the consolidated financial statement, with AOC 4 CFS NBFC. If the entity is included in section 135(1) of the Companies Act 2013, then they are required to report on CSR in form CSR -2 for the previous financial year (20-21) and in addition to Form AOC 4 or AOC 4 NBFC, AOC 4 XBRL, as the situation might be. Though, from the 21-22 financial periods before 31 March 2023, companies can separately file form CSR -2 after the filing of Form AOC 4 or AOC 4 NBFC, AOC 4 XBRL, as the situation might be. If the entities are included within the XBRL requirements as per the Companies Rules 2015, then in the XBRL format, financial accounts are submitted. The below-prescribed entities shall submit their annual accounts and other information in e-Form AOC 4 XBRL.
- All entities listed in the stock exchange in the country and their subsidiary in India
- All entities that have capital of ₹5 crores and higher
- All entities that have sales of ₹ 100 crores and higher
- All entities must create annual accounts per the Companies Rules 2015.
According to the Companies Act 2013, the below-prescribed norms are applicable for filing annual statements with the Registrar.
| Situation | Submission of Annual Accounts |
| At the AGM, annual accounts are accepted along with CFS and other documents |
Within 30 days from AGM plus a prescribed fee. In OPC, the period should be 180 days from the completion of the fiscal period. |
| In the situation of adjourned meeting | Within 30 days from the date of adjourned AGM plus a prescribed fee. |
| If the annual accounts are not adopted |
Within 30 days of the AGM. The annual accounts and documents are considered provisional until adopted annual accounts are filed. |
| If AGM is not organised |
Within 30 days from the date on which AGM shall have been organised plus the prescribed fee. It is essential to file annual accounts and documents and the causes of not holding an AGM. |
In the usual situations, 30 October is considered 30 days from the last date on which AGM shall be organised, and it means companies shall file Form AOC 4 by 30 October of the relevant year.
Significance of Submitting AOC 4
- The company’s financial statement contains financial information about the organisation, and it mainly offers a true and fair view regarding the activities to the investors and shareholders. The main goal of the annual accounts is to offer details regarding the financial position, advancement, and changes in the financial position, which would be significant for a broad range of the company’s stakeholders in taking organisational decisions.
- Preparation and the filing of the annual accounts are considered important modes of communication between the shareholders and directors of a company. Compulsory disclosures by the annual accounts, including the reports given by Board and auditor, are a mechanism for delivering details to the usual public regarding the monetary activities and position of the organisation. Since a financial statement shows the true and reliable position of the company and thus; it is very significant for the entire stakeholders, investors, or financial organisations so that they can make informed business decisions.
Certifying Form AOC 4
- Normally, directors/managers/CEO/CFO provides a declaration that states that the full details given in the form are right and it is provided as per the relevant laws and regulations. This form has been duly signed digitally in addition to the DIN or PAN number of the certifying authority.
- A CA / CS/ ICWA engaged in full-time practice has to declare that they have verified all attached documents. As per their knowledge, the information is correct and complete. It is also required by the practising professional that they give their membership number and their status as well, such as fellow or associate.
Applicable Fee
The fee is charged based on the company’s share capital.
| Share Capital (₹) | Fee (₹) |
| Less than ₹ 1 lakh | ₹ 200 each document |
| ₹ 1 lakh or more but less than ₹5 lakhs | ₹ 300 each document |
| ₹ 5 lakhs or more but less than ₹25 lakhs | ₹ 400 each document |
| ₹ 25 lakhs or more but less than ₹1 Crore | ₹ 500 each document |
| ₹ 1 crore or more | ₹ 600 each document |
If the company does not have share capital then the fee would be ₹ 200 each document.
Late Fee
If a company has made any delay in filing Form AOC 4 within a defined time period, then it is required to make payment of a late fee in addition to the standard fee. The amount of late fee is ₹ 100 per day.
If the company has made a delay in filing the belated financial statements, then the below-prescribed fee is applicable
| Delay period | Amount of additional fee |
| Up to 30 days | Two times of normal fee |
| Greater than 30 days and up to 60 days | Four times of normal fee |
| Greater than 60 days and up to 90 days | Six times of normal fee |
| Greater than 90 days and up to 180 days | Ten times of normal fee |
| Greater than 180 days | Twelve times of normal fee |
Applicable Penalty
If the company did not file Form AOC 4, then the amount of penalty is ₹ 10,000 for continuous failure and ₹ 100 for every day of failure up to ₹ 2 lakhs. Moreover, the penal provisions are also applied to the managing director or CFO and if the company does not have an MD / CFO, then any other director has responsibility. The amount penalty is ₹ 10000 and ₹ 100 every day of failure up to ₹ 50,000.
Conclusion
The company uses Form AOC 4 for filing the financial statement in each financial period with the Registrar of Companies. It is very useful for making informed decisions by the investors and stakeholders as it contains the company’s financial performance. If you want to know more about the filing process and information, contact Vakilsearch today.
