Introduction

ROC filing means filing annual returns and audited financial statements to uphold compliance with the requirement of Companies Act 2013 in India. In this blog, we will discuss why ROC filing is necessary and what laws regulate it? What procedure should be followed while filing for ROC and what documents are necessary for it?

Importance of ROC Filing under the Companies Act, 2013

ROC filing is of importance to companies because it offers the public and investors information on the company’s performance and legal compliance. The companies also file annual returns and audited financial statements which contain the general details about the financial conditions, working and legal compliance status of the companies. This makes it possible for investors, creditors, and the regulatory authorities, as the major stakeholders, to evaluate the performance of the company; make sensible decisions in view of their interests; and protect such interests as necessary.

Failure to observe ROC filing requirements always has serious repercussions which range from penalties, legal proceedings and sometimes disbarment of directors. Understanding and addressing ROC filing responsibility is thus an important aspect that cannot be eradicated from the dynamics of company’s management by its directors.

The ROC filing is regulated by the section of the Companies Act, 2013, and corresponding rules. Let's take a closer look at the relevant provisions:

Filing of Audited Financial Statements

The provision to prepare audited financial statements is provided for in the Companies act of twenty thirteen in sections one hundred and twenty nine and one hundred and thirty seven and rule twelve of the company accounts two thousand, fourteen. According to these provisions, there is a legal requirement on every company to lay and send to the company the following documents; includes the balance sheet, profit and Loss Account, cash flow statement and notes to accounts and auditors’ reports. It is important these financial statements are prepared according to the accounting standards and the report should provide accurate and fairly the state of affairs of the companies.

NOTE READ : Trademark Registration Process

Filing of Annual Returns

Annual returns as per the management and administration rule 11 of Companies 2014 and section 92 of LOTem Companies Act, 2013. Some of the information that companies have to include in their annual returns include the company’s entire national activities, shareholders, liabilities, and so on. The annual return should be filed in Form CO32 within sixty days from the date of passing of the Annual General Meeting.

Filing of various other e-forms required to be filed with the ROC under Companies Act, 2013, arranged in order:

1. Form ADT-1:

• Purpose of the Form: Appointment of Auditor
• Due date of filing: Fifteen days from the date of the AGM.
• Applicability on Company: Private Companies, Listed Companies, Benefits of Public Limited Company, One Person Companies.

2. Form AOC-4 and Form AOC-4 CFS (in case of Consolidated financial statements):

• Purpose of the Form: Filing of Annual Accounts
• Due date of filing: 30 days from the date of the AGM (In the case of OPC Vs Private Limited Company, within 180 days from the close of the financial year).
• Applicability on Company: Private Companies, One Person Companies, Public Limited Companies.

3. Form AOC-4 (XBRL):

• Purpose of the Form: Filing of Annual Accounts in XBRL mode
• Due date of filing: 30 days from the date of the AGM.
• Applicability on Company: Listed companies in India and their Indian subsidiaries (or) a public company.

4. Form MGT-7/MGT-7A:

• Purpose of the Form: Filing of Annual Return
• Due date of filing: Sixty days from the date of AGM.
• Applicability on Company: Private Companies, Listed Companies, Public Limited Companies, One Person Companies.

5. Form CRA-4:

• Purpose of the Form: Filing of Cost Audit Report
• Due date of filing: Thirty days from the receipt of the Cost Audit Report.
• Applicability on Company: Companies prescribed according to the Companies (Cost Records and Audit Rules), 2014, are amended continuously.

6. Form MGT-14:

• Purpose of the Form: Filing of resolutions with MCA regarding approval of Board Report and Annual Accounts
• Due date of filing: 30 days from the date of the concerned Board Meeting.
  • Applicability on Company: Public Companies, Listed Companies. This is exempted for private companies.

These E-Forms serve different purposes and have specific due dates for filing. The relevant companies need to adhere to the prescribed timelines and submit the forms accurately to ensure compliance with the regulations set forth by the ROC.

Procedure for ROC filing

ROC Filings is specifically for the Annual Return and Audited financial statement, involves the following steps:

1. Conduct a Board Meeting:

The board meeting is held to fulfill the following purposes:

-  The auditor should prepare its financial statement as per schedule III of the Companies Act of 2013.

- Allowed the Director or the Company Secretary to prepare the Board Report and the Annual Return as required by the Companies Act 2013.

2. Hold Second Board Meeting:

Among other meetings is the board meeting to adopt the directors’ draft management financial statements, Annual returns and Board reports. Such a step assists in making sure that before the board of directors spends any more time on it, they review and endorse the documents such as the financial statements.

3. Conduct the Annual General Meeting:

Hold the company’s Annual General Meeting (AGM) and thereafter make sure that the recommended resolutions have been passed. In the process of the company’s annual general meeting, the shareholders are privileged to scrutinize and seal the financial statements and any other reports presented to the assembly. The approval of the financial statements occurs when the latter is approved at the GeneralMeeting of shareholders.

Hence, by adopting this procedure companies will be ready to ascertain that all the essential meetings and approvals are obtained and financial statements the Annual Return is also prepared and prepared in accordance with the Companies Act, 2013. This systematic approach also guarantees in the same way that no company is escaping from filing its ROC, and also makes the records clear.

Detailed Process of ROC Filing on Ministry of Corporate Affairs

1. Download the Required Forms:

Initially, they should go to the MCA official website where they are supposed to download various forms that are required to be filed in ROC including AOC-4 and MGT-7. They are available under the Company E-filing Section on the MCA services main menu.

2. Fill in the E-Forms and Attach Documents:

When you have downloaded these forms, complete them and enter the details pertinent to your trading company. Make certain that the information you give is the correct and current information. Also, include other papers as may be provided by the instruction with the exam.

3. Check the Form and Attach Digital Signature:

This is to ensure that the form is filled perfect and there is lack of any important detail before the form is forwarded. The “Check form” enables a check of the input entered against the form. Following that, add the Digital Signature of the Director (DSC),; Optional – if engaged, the Practicing Professional. This is a very important step if there is a tendency of paring the account to any person who finds himself or herself with the account number. Police Verification Certificate, It is beneficial to include the following purpose:

4. Register on the MCA Portal:

In order to file, for the first time with the MCA portal, it is necessary to open the portal and open new account either through Business User account or registered user account. Please proceed and complete the registration process by entering information at the blank spaces and click on the tabs to get the identification number and the password.

5. Log in and Upload the E-Forms:

If you have registered successfully, it is necessary to login with the ID and password on the MCA portal placed at the bottom. After logging in successfully navigate to the right section where you are supposed to attach the completed E-forms and the signed forms from the location on your system. Kindly make the submission in the manner described on this portal to enhance proper filing.

6. Generate Service Request Number (SRN):

When the forms have been uploaded the MCA system will produce a unique Service Request Number (SRN) for the filing. This number will help you to monitor the state of your submission. It is useful to write down the SRN for later use later on.

7. Payment Options:

Once you create an SRN you will be automatically taken to the payment window. You have two choices when it comes to the matter of payment:

• Pay Later Option: If you choose this option then challan will be prepared and you can deposit the same within a date determined by govt.

• Online Payment: The other way to choose is the online payment using the internet banking or the debit/credit card. Read the instructions and make the final payment for the order. For your own record , and for purpose you should maintain the printed chalan of the payment challan.

8. Track the Status:

Using SRN, you are able to do a tracking of the progress of the filing. In the right-hand corner of the window, fit the four-letter code of the SRN into the respective space to read the status of your form at the present moment. On the form, there will be an indication as to whether the form is approved or awaiting approval.

These are the practical steps that one has to follow in order to file ROC through MCA portal in an efficient manner and also the set procedures and regulation have to be followed while filing ROC.

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