Last updated: October 24th, 2023 11:36 AM

Financial Statements - AOC 4 Filing

Financial Statements are a comprehensive record, capturing a company's financial activities and current financial standing. These statements not only furnish critical data to stakeholders but also equip the company's Board with insights into the economic health of the business. As a cornerstone of annual company compliance in India, every company registered with the Registrar of Companies (ROC) must submit the AOC-4 form. This e-form encompasses the financial statements, shedding light on the company's financial trajectory for a designated fiscal year. This article will delve into the financial statement and form AOC 4. If you're looking for assistance with annual company compliance, IndiaFiling stands ready to help. [shortcode_33]

Financial Statements

Every enterprise encounters numerous business operations daily, including financial transactions. Just as with other business operations, financial transactions are documented. Hence, financial Statements provide insights into an enterprise's fiscal health.

What are Financial Statements?

Financial Statements are ledgers where financial transactions are documented. Essentially, they are written accounts of daily business operations. Financial Statements are pivotal in the accounting realm. Governmental agencies or accredited accountants rigorously audit an enterprise's Financial Report. These Statements are a foundation to gauge a company's overall transactions in a fiscal year, daily transactions, business costs, profits, tax, and other essential fiscal data. Furthermore, these Statements confirm the veracity and precision of a venture's financial facets.

What do the Financial Statements of a company encompass?

Elements of the company's Financial Statements include:

• Income Statement
• Cash Flow Statement
• Balance Sheet - Statement of Financial Position

What is the Income Statement?

The Income Statement, as implied by its name, presents the revenue and expenditures of an enterprise. The profit and loss report discloses expenses, revenue, earnings per share, and the company's net earnings for the fiscal year. Unlike the statement of financial position, income Statements can also be issued quarterly.

What is the Cash Flow Statement?

The Cash Flow Report offers a comprehensive view of cash movement within a business, detailing cash sources and applications. Moreover, it sheds light on how funds are utilized for diverse operations. This report is instrumental for investors to gauge the fiscal decision-making of their prospective investments.

What is the Statement of Financial Position?

Every enterprise possesses assets and liabilities. The Statement of Financial Position, commonly known as the Balance Sheet, catalogs assets, liabilities, and shareholders' equity at the fiscal year's close. The heading typically displays the fiscal year and the enterprise's designation. The table enumerates assets like cash, accounts receivable, and inventory, while the flip side lists liabilities like debts and dividends payable. The disparity between total assets and liabilities is termed shareholders' equity.

What is the significance of a financial report?

Financial Statementselucidate an enterprise's fiscal, operational, and investment facets, granting a snapshot of its financial stance.

Form AOC-4 

Form AOC-4 is the designated means for companies to submit their financial statements to the Registrar of Companies (ROC). This Form acts as a bridge, ensuring that companies duly provide their financial documentation to the relevant authorities.

Types of AOC-4 Forms  

Form AOC-4: A general form companies use to file financial statements and accompanying documents with the Registrar.

• Form AOC-4 XBRL: This version is specifically for companies submitting their financial statements and related documents in the XBRL format to the Registrar.
• Form AOC-4 CFS: Tailored for Non-Banking Financial Companies (NBFCs), this Form is employed to file consolidated financial statements and pertinent documents with the Registrar.
• Form AOC-4 CFS NBFC(Ind AS): An extended form for NBFCs, allowing them to file consolidated financial statements and accompanying documents following the Indian Accounting Standards (Ind AS) with the Registrar.
• Form AOC-4 NBFC (Ind AS): This variant is designed for NBFCs adhering to the Indian Accounting Standards (Ind AS) when filing their financial statements and other related documents with the Registrar.

Form AOC-4 XBRL: Bridging the Reporting Gap

What is XBRL? It stands for "Extensible Business Reporting Language". Adopted on April 1, 2014, XBRL aims to standardize the process for big companies in reporting their financial data.

Who should file using this format?

• Companies listed with any Stock Exchanges in India and their Indian subsidiaries.
• Companies with a paid-up capital of Rs 5 crore and above.
• Companies with a turnover exceeding Rs 100 crore.

Form AOC-4 CFS: Simplifying Consolidated Financial Statements

CFS is an abbreviation for consolidated financial statements. It's the e-form tailored for companies that must draft consolidated financial statements as per Section 129(3) of the Companies Act 2013.

Which companies should use this Form?

Companies possessing one or more subsidiaries, whether in India or abroad, must file both AOC-4 and AOC-4 CFS.

Form AOC-4: A Universal Financial Reporting Tool

Who should file using Form AOC-4? Essentially, companies not adhering to the specific criteria for XBRL and CFS will use the AOC-4 form to submit their financial statements and associated documents.

Timelines for AOC-4 Submission

• One-Person Companies (OPC): The filing must be completed within 180 days from the financial year's conclusion.
• Private Limited Companies: The AOC-4 submission should occur within 30 days from the Annual General Meeting's date.

Companies must ensure accountability to their stakeholders through Financial reports, disclosures, the Board's report, and the Auditor's report. These financial reports are the primary communication channels between a company's Board of Directors and its shareholders. The company utilizes Form AOC 4 to submit its yearly financial reports to the Registrar of Companies (ROC). The company should use the AOC 4 CFS form when presenting consolidated financial reports.

Requirements for Filing Form AOC-4

• General Requirement: Every company is mandated to file its financial statements using Form AOC-4.
• Non-Banking Financial Companies (NBFC): NBFCs adhering to the Indian Accounting Standards (Ind AS) should file their financial statements using Form AOC-4 NBFC (Ind AS). They should use Form AOC-4 CFS NBFC (Ind AS) if they have consolidated financial statements.
• Corporate Social Responsibility (CSR) Reporting: Under Section 135(1) of the Companies Act 2013, companies must submit a CSR report. This report, titled Form CSR-2, pertains to the financial year 2020-2021 and subsequent years. Depending on the company type, it should be attached to Form AOC-4, AOC-4 XBRL, or AOC-4 NBFC (Ind AS).

XBRL Requirement

Companies falling under the purview of the Companies (Filing of documents & Forms in Extensible Business Reporting Language) Rules, 2015, must upload their financial statements in XBRL format. Companies that need to file their financial statements using e-Form AOC-4 XBRL include:

• All companies listed on any Indian stock exchange and their Indian subsidiaries.
• Companies with a capital equal to or exceeding five crores.
• Companies with a turnover equal to or exceeding 100 crores.
• Any company is mandated to prepare its financial statements following the Companies (Indian Accounting Standards) Rules, 2015.

Filing Financial Statements as per the Companies Act 2013

According to the Companies Act 2013, specific provisions govern the filing of financial statements with the Registrar of Companies (ROC). Below are the details based on the position of the company:

Adopted Financial Statements at the AGM:

>Financial statements, consolidated financial statements, and attached documents: These should be filed within 30 days of the annual general meeting (AGM) along with the required fees or any additional fees.

• For One Person Companies (OPC): The duration extends to 180 days from the closure of the financial year.
• In Case of an Adjourned AGM: The financial statements must be filed within 30 days of the adjourned AGM, accompanied by the prescribed or additional fees.

Unadopted Financial Statements

These will be filed within 30 days of the AGM. It's crucial to note that until the adopted financial statements are filed, the accompanying documents and the financial statements are deemed provisional.

If AGM is Not Held

The company should file the financial report within 30 days from the date the AGM was supposed to be held, inclusive of the prescribed fees or additional fees. The company must also provide the reasons for not conducting the AGM and ensure that the accompanying documents and the financial reports are submitted.

Due Date for Filing AOC 4

Typically, 30 days from the last date when the AGM should have occurred is October 29. This implies that, under standard conditions, Form AOC-4 must be filed no later than October 29 of the pertinent assessment year.

Importance of Filing Form AOC-4

• Official Records: Financial reports clearly show a company's financial activities and health.
• Communication: They are a vital communication tool between the Board of Directors and shareholders.
• Transparency: Through mandatory disclosures like the Board's and Auditor's reports, companies provide vital financial details to shareholders and the public.
• Decision-making: These statements aid stakeholders, investors, and financial institutions in making informed decisions by revealing the company's financial position.

MCA AOC-4 Filing: Fees, Penalties, and Requirements

Government Fees for Filing AOC-4:

• Companies Without Share Capital: ?200
• Companies With Share Capital:
  • Up to ?1,00,000: ?200
  • ?1,00,000 - ?4,99,999: ?300
  • ?5,00,000 - ?24,99,999: ?400
  • ?25,00,000 - ?99,99,999: ?500
  • ?1,00,00,000 and above: ?600

Additional Fee for Late Filing of AOC-4

(Effective from June 30th, 2018): ?100 for each day of delay

Penalties for Non-Filing AOC-4:

• Company: ?1,000/day (capped at ?10 lakhs)
• Directors/Responsible Persons: ?1 lakh + ?100/day (max ?5 lakhs)

Contents of AOC-4:

• General company information
• Long-term loan and advance details
• Profit and Loss particulars
• Corporate social responsibility reporting
• Related party transaction disclosures
• Attached Auditor's Report
• Other miscellaneous attachments

Who Should Sign AOC-4?

Small Companies

Criteria: Up to ?2 Crores of paid-up capital and ?20 Crores of the previous year's turnover Can self-sign the AOC-4.

Other Companies

• Company Signature: Under the declaration section, either the Director Identification Number (DIN) of the director or PAN of the manager, CEO, or CFO.
• Practicing Professional Signature: Must be signed by one of the following in full-time practice:
  • Chartered Accountant (CA)
  • Cost Accountant (ICWA)
  • Company Secretary (CS)

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