Misconceptions regarding filing of annual return and applicability to prepare extract of annual returns



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This article clarifies common misconceptions surrounding the filing of Annual Returns and the preparation of Extracts of Annual Returns. While often used interchangeably, these are distinct reporting documents. Recent amendments, particularly the Companies (Management and Administration) Rules, 2021, have removed the requirement to attach the Extract of Annual Return (MGT-9) to the Board's Report for financial years from 21-22 onwards. Companies now need to place their Annual Return (MGT-7 or MGT-7A for small companies) on their website and disclose the web link in the Board's Report.

Annual Return is a significant document for all the Stakeholders of the Company as it provides in a nutshell, very comprehensive information about various aspects of the Company. While the Financial Statement gives information about the financial performance of the Company it is the Annual Return wh
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FAQ :

An Annual Return provides comprehensive, non-financial information about a company's various aspects to its stakeholders.

An Annual Return (Form MGT-7) contains detailed particulars of the company as of the financial year-end, while an Extract of Annual Return (MGT-9) was previously a part of the Board's Report.

No, with the amendment of Rule 12 of the Companies (Management and Administration) Rules, 2021, the requirement to attach the Extract of Annual Return (MGT-9) to the Board's Report has been removed from the financial year 21-22 onwards.

Companies must place a copy of their Annual Return (MGT-7 or MGT-7A for small companies) on their website and disclose the web link in the Board's Report.

Small Companies and One Person Companies (OPCs) are required to file an abridged Annual Return in Form MGT-7A.




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