RUTU SHAH
Quick Summary
Annual Compliances for Private Company
- Clearly, running a business in the form of a Company is not something to be undertaken lightly.
- Compliance is not only 'doing the right thing', or 'ticking a box' but it is the way of working and part of the business.
Remember, the cost of non-compliance is always more than the cost of compliance.
1. Compliances when turnover is more than Rs. 20 Crores
| Sr. No | Compliance | Time period |
| 1. | Cash flow Statement along with financial statement | The cash flow statement should report cash flows during the period classified by operating, investing and financing activities. |
| 2. | FORM AOC-4 | Filing financial statement and other documents with the Registrar for Financial Year ended.
Within 30 days of the AGM |
| 3. | Signing of CS or PCS in Annual Return (MGT-7) | Within 60 days of the AGM |
2. Compliances when turnover is more than Rs.100 Crores
| Sr. No | Compliance | Time period / Requirement |
| 1. | Cash flow Statement along with financial statement | The cash flow statement should report cash flows during the period classified by operating, investing, and financing activities. |
| 2. | Filing of Financial Statements in FORM AOC-4 XBRL | Within 30 days of the AGM |
| 3. | Annual Return Certification in Form MGT-8 | Attachment in Form MGT-7. MGT-7 is required to be filed within 60 days of AGM. |
3. Compliances when turnover is more than Rs.200 Crores
| Sr. No | Compliance | Time period / Requirement |
| 1. | Cash flow Statement along with financial statement | The cash flow statement should report cash flows during the period classified by operating, investing and financing activities. |
| 2. | Filing of Financial Statements in FORM AOC-4 XBRL | Within 30 days of the AGM |
| 3.. | Annual Return Certification in Form MGT-8 | Attachment in Form MGT-7. MGT-7 is required to be filed within 60 days of AGM. |
| 4. | Appointment of Internal Auditor | Internal Audit is the check to assess the risk management and to ensure that risk management processes are efficient, effective, secure, and compliant. It is the basic check of internal control of the organization. An internal audit is an organizational move to check, ensure, monitor, and analyze its own business operations in order to determine how well it conforms to a set of specific criteria. |
4. Compliances when turnover is more than Rs.1000 Crores
| Sr. No | Compliance | Time period / Requirement |
| 1. | Cash flow Statement along with financial statement | The cash flow statement should report cash flows during the period classified by operating, investing, and financing activities. |
| 2. | Filing of Financial Statements in FORM AOC-4 | Within 30 days of the AGM |
| 3. | Annual Return Certification in Form MGT-8 | Attachment in Form MGT-7. MGT-7 is required to be filed within 60 days of AGM. |
| 4. | Appointment of Internal Auditor | Internal Audit is the check to assess the risk management and to ensure that risk management processes are efficient, effective, secure, and compliant. It is the basic check of internal control of the organization. An internal audit is an organizational move to check, ensure, monitor, and analyze its own business operations in order to determine how well it conforms to a set of specific criteria. |
| 5. | Constitution of CSR Committee |
Minimum 3 or more directors must form CSR Committee. Among those 3 directors, at least 1 director must be an independent director. |
The author can also be reached at corpcompliance07@outlook.com
FAQ :
For private companies with turnover exceeding Rs. 20 Crores, key compliances include filing a cash flow statement with the financial statement, filing Form AOC-4 within 30 days of the AGM, and signing the Annual Return (MGT-7) within 60 days of the AGM.
Companies with turnover above Rs. 100 Crores must file financial statements in FORM AOC-4 XBRL within 30 days of the AGM and get their Annual Return certified in Form MGT-8, which is attached to Form MGT-7 filed within 60 days of the AGM. They also need to include a cash flow statement.
Yes, private companies with turnover exceeding Rs. 200 Crores have the same requirements as those with over Rs. 100 Crores, including filing financial statements in FORM AOC-4 XBRL within 30 days of the AGM, certifying the Annual Return in Form MGT-8, and appointing an Internal Auditor.
For private companies with turnover above Rs. 1000 Crores, compliances include filing a cash flow statement, filing financial statements in FORM AOC-4 within 30 days of the AGM, filing the Annual Return (MGT-7) within 60 days of the AGM with certification in Form MGT-8, appointing an Internal Auditor, and constituting a CSR Committee.
An Internal Auditor assesses risk management processes to ensure they are efficient, effective, secure, and compliant. It serves as a basic check of the organisation's internal controls and monitors business operations against specific criteria.
A CSR Committee must be constituted for private companies with turnover over Rs. 1000 Crores. It requires a minimum of three directors, with at least one independent director, unless an independent director is not required for an unlisted public or private company.
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