Statutory Audit Compliances

The statutory audit compliances are carried to determine whether an organization provides accurate details of the financial position by examining the bank balances, bookkeeping records, and financial transactions.

• A statutory auditor of the company is appointed.
• The auditors of the company will finalize annual accounts.

Annual ROC Filings

The Private Limited Companies must file the annual accounts and returns disclosing the details of its shareholders, directors, etc., to the companies’ registrar.

As a part of the annual filing, the following forms are to be filed with the ROC:

Form MGT-7 (Annual returns) must be filed within 60 days of holding the annual general meeting.

Form AOC-4 (Financial statements) is to be filed by a private limited company within 30 days with the balance sheet and the statement of profit and loss account and Director report.

Board Meeting

It is mandatory to conduct the first meeting of the Board of Directors of a company within 30 days of incorporation of the company.

There should be four board meetings held every three months in which a minimum of 2 directors or 1/3 rd of the total number of directors, whichever is greater, are required to be present.

Further, the meeting’s discussion needs to be drafted and recorded in the minutes of the meeting and maintained at the company’s registered office.

A notice should be intimidated seven days in advance about the date and the purpose of the meeting.

Non-compliance

In case if a company fails to comply with the rules and the regulations of the Companies Act, then the company and its members who default shall be punishable with a dine for the period of which the default is continuing.

In case there is a delay in annual filing, additional fees are required to be paid. Hence, it is always better to fulfill the compliances on time.

Directors Report

The Director has to disclose details about his directorship in other companies every year. This can be done by giving a declaration in writing to the company every year.

Income Tax Compliances

• Quarterly payment of the advance tax
• Filing of the Income Tax returns
• Tax audit (mandatory in case the turnover or gross receipts of a business exceeds Rs. One crore in the previous year relevant to the assessment year.
• Filing of the Tax Audit report.

Annual General Meeting

It is necessary to hold a meeting of the shareholders once every year within six months from the financial year’s closing.

AGMs are held for approval of financial statements, declaration of dividends, appointment or re-appointment of auditors, commission, remuneration of directors, etc.

The meeting is held during business hours on a day that is not a public holiday. It shall occur at the registration of the company or the city, village, or town in which the registered office is situated.

Other event-based Compliances

Besides the annual filings, there are various other compliances that need to be compiled with on occurrence of any event in the company.

Here are specific instances of such events:

• Change in the authorized capital or the paid-up capital of the company.
• Allotment of new shares or transfer new shares
• giving loans to other companies
• giving loans to directors
• Appointment of managing or whole-time Director and their payment
• when a bank account is opened or closed, or there is a change in the signatories of a bank account.
• if there is an appointment or change of the statutory auditors of the company

It is necessary to file different forms with the registrar for all such events within a specific period. In case of missing out on this, additional fees or penalties might be levied. Hence, it is necessary to meet such compliances on time.