WHAT IS AOC – 4?
AOC-4 is a form used by companies in India to file their financial statements with the Registrar of Companies (ROC). It is an annual filing that must be completed within 30 days of the company’s annual general meeting (AGM). The form includes information on the company’s assets, liabilities, revenue, expenses, and profit or loss. It also includes a directors’ report and an auditors’ report.
The due date for filing AOC-4 for the financial year 2022-23 is October 29, 2023. If the form is not filed on time, the company may be liable for a penalty.
Here are some of the details that are required to be filed in AOC-4:
- Name of the company
- Registration number
- Financial year
- Directors’ report
- Auditors’ report
- Balance sheet
- Profit and loss account
- Cash flow statement
- Notes to accounts
- Statement of subsidiaries (if applicable)
- Details of CSR policy (if applicable)
The AOC-4 form can be filed online through the Ministry of Corporate Affairs (MCA) website. The form can also be filed offline at the ROC office.
- Compliance with legal requirements: AOC-4 is a mandatory filing for all companies registered in India. By filing AOC-4, companies can ensure that they are in compliance with the Companies Act, 2013.
- Transparency: AOC-4 provides a comprehensive overview of a company’s financial position and performance. This information is important for shareholders, creditors, and other stakeholders to make informed decisions about the company.
- Improved corporate governance: AOC-4 requires companies to have their financial statements audited by a qualified auditor. This helps to ensure that the financial statements are accurate and reliable.
- Risk management: AOC-4 can help companies to identify and manage risks. By understanding their financial position and performance, companies can take steps to mitigate risks and protect their assets.
- Access to capital: AOC-4 can help companies to access capital from investors. By providing investors with a comprehensive overview of the company’s financial position, AOC-4 can help to build trust and confidence.
- Cost: Filing AOC-4 can be a costly exercise, especially for small and medium-sized enterprises (SMEs). The cost of preparing the financial statements, having them audited, and filing the form with the ROC can be significant.
- Time commitment: Filing AOC-4 can be a time-consuming process, especially for companies with complex financial structures. The directors and management of the company will need to spend time gathering the necessary information and preparing the form.
- Complexity: AOC-4 is a complex form, and it can be difficult to understand and complete, especially for companies that are not familiar with financial reporting. There is a risk of making mistakes, which could lead to penalties from the ROC.
- Non-compliance: If AOC-4 is not filed on time or in a complete and accurate manner, the company may be liable for penalties from the ROC. These penalties can be significant, and they could damage the company’s reputation.
AOC-4 is a mandatory filing for all companies registered in India. It is a comprehensive form that provides a snapshot of a company’s financial position and performance. AOC-4 has several advantages, including compliance with legal requirements, transparency, improved corporate governance, risk management, and access to capital. However, there are also some disadvantages to filing AOC-4, such as cost, time commitment, complexity, and non-compliance. Overall, the advantages of filing AOC-4 outweigh the disadvantages. However, it is important to be aware of the potential drawbacks before filing the form.