What Are The Annual Filings of a Producer Company?

Introduction

A company is an entity that has its own identity apart from its owner and is incorporated for a legal purpose. A producer company is an association that has a legal entity for conducting business. The laws and regulations governing any company in India, including a producer company, are governed by the Companies Act, 2013. Producer companies have certain annual requirements that they need to meet within a certain time.

Failure to meet these requirements will result in heavy penalties being imposed on the company. Therefore, it is always recommended to fulfill the annual compliance requirements of the producer company to avoid any type of fine or penalty, which can be very damaging to the company’s business. Filing the annual compliance requirements of a producer company is not a simple task. There are a lot of complicated procedures involved in filing the yearly requirements of the producer companies.

What is a Producer Company?

A producer company is a particular type of business established by a group of farmers, agriculturalists, and rural entrepreneurs to grow, harvest, and sell agricultural products or those acquired from cottage industries. Producer companies are governed by the Companies Act, 2013, and are registered under the Ministry of Corporate Affairs.

What are the Annual Filings of a Producer Company?

The annual filings of the company include various forms that must be filed according to the laws and regulations of the company. The audited company reports and accounts are used to fill out the forms and submit the annual filings. Every year, the audit reports and the director’s reports are filed and submitted by each producer company to maintain its legal position.

Before beginning the form filing process via the official MOA website, it is necessary to gather the necessary information and documents. This includes the audited P&L account, balance sheet, and other financial statements. Documents required include a MOU, article of association, identity proof, etc.

1. Form 23AC: Section 220 and Rule 7B of the Act require all companies to submit this form for balance sheet filing with the registrar of companies.

2. Form 23ACA: This is a form that every producer company is required to fill out by Section 215 of the Companies Act for filing and verifying the profit and loss account of the producer company with the registrar of companies.

3. Form 20B or 21A: If you’re a producer company, you’ll need to file either Form 20B or 21A as part of your annual return, as Form 20B applies to companies with a share capital and Form 21A applies to companies with no share capital.

4. Form MBP-1: This form must be filed under Section 184(1). At the first Board meeting, each director is required to declare and disclose their interest or holdings in this form, as well as any changes in their interest in the forms previously filed in this form for other entities in the financial year.

5. Form DIR-8: Each director of the company must file Form DIR-8, the disclosure form of non-disqualification under Sections 164(2) and 143(3)(g), with the company.

6. Form MGT-7 and AOC-4: Form MGT-7 and Form AOC-4 must be filed by the producer company under Section 581ZA for the annual return and the financial statement, respectively. The annual return must be filed within 60 days after the general meeting, and the financial statements must be filed within 30 days after the General Meeting. The annual returns for the financial year shall be filed between 1st April and 31st March. The financial statements shall include: The balance sheet The profit and loss statement The cash flow statement Other audit reports.

7. Form DPT-3: For returns of deposits and other information that does not qualify as deposits, the form DPT-3 must be submitted by any producer company under Section 73(16) of the act.

8. BEN-2: According to Section 90, a company must file BEN–2 within 30 days of receiving BEN-1.

9. DIR-3 KYC: It is just as important for a business and its Director as it is for the general public. According to Rule 12A, every Director is required to fill out the KYC form annually by September 30th.

10. MSME-1: The MSME-1 form must be submitted by any producer company every six months under Section 405 of the law. This form must be submitted for the months of 1st April through 30th September and 1st October through 30th March about the company’s outstanding payment to the MSME.

Note: It is important to note that the above is not a complete list of the annual filing requirements, as many other requirements and filings are dependent on working practices and specific transactions and circumstances. Several other forms are required for all types of businesses.

Final Thoughts

In conclusion, producer companies must abide by the rules for yearly filings to operate effectively. Penalties, fines, and legal penalties could result from failure to comply with these regulations. The above-mentioned checklist will assist producer companies in making sure they complete all of their annual filing requirements and continue to be in legal compliance.