Penalties a company has to pay for non-filing of AOC-4 and MGT-7

Introduction

The term “ROC filing” refers to a company’s annual return and audited financial statements that have to be filed on or before due dates with the Ministry of Corporate Affairs (MCA) each year. A company will incur some fines in the context of failure to file annual returns as per the provision of the Companies Act, 2013. In this article we will mainly focus on two types of annual filing one is financial statements and annual returns of the company and non-filing of AOC-4 and MGT-7. Both are filed after the Annual General Meeting (AGM) within the due date of filing AOC-4 in 30 days and MGT-7 in 60 days with MCA.

What are Form AOC-4 and MGT-7?

Form AOC-4 is filed with the purpose of filing financial statements of a company in every financial year. This form is filed with ROC. The Board of Directors and shareholders use financial statements as a tool for evaluating the performance of a company. The form must be properly filed by the company within 30 days of the Annual General Meeting. Form AOC-4 can be downloaded from the MCA portal from the annual E-filing category.

Form MGT-7 is filed with the purpose of filing the annual return of a company in every financial year. It is an electronic form provided by the Ministry of Corporate Affairs. The form must be properly filed by the company within 60 days of the annual general meeting. The Form MGT-7 can be downloaded from the MCA portal from the annual E-filing category.

Due date of filing AOC-4 and MGT-7

The due date for filing MGT-7 is within 60 days from the date of the Annual General Meeting with ROC. The due date for conducting AGM is on or before the 30th September following the end of a financial year. Hence, the due date for filing form MGT-7 is normally the 29th of November.

The due date for filing Form AOC-4 is 30 days from the date of the Annual General Meeting with ROC. The due date for conducting AGM is on or before the 30th September following the end of a financial year. Hence, the due date for filing form MGT-7 is normally the 30th of October.

Penalties for non-filing of AOC-4 and MGT-7

The penalty for non-filing Form MGT-7, which is the annual return of a company is Rs.100 (Rupees Hundred) per day of default. Hence, it should be ensured that the annual return in this form is filed before the due date.

The penalty for non-filing Form AOC-4, which is the financial statement of a company is Rs.100 (Rupees Hundred) per day of default. Hence, the company should ensure that the financial statement in this form is filed before the due date every year.

Key takeaways

It is mandatory for all companies to file a financial statement in the form AOC-4 and an annual return in the MGT-7 for every financial year. Non-filing of AOC-4 and MGT-7 might cause you a penalty of Rs.100 per day. These are filed by the companies with the ROC.