The Ministry of Corporate Affairs in India has issued a crucial advisory to businesses, emphasizing the significance of timely filing of annual returns and financial statements for the fiscal year 2023 (FY23). This advisory is aimed at avoiding the imposition of additional fees and ensuring that companies adhere to the legal requirements set out in the Companies Act.
The process begins with companies conducting their annual general meetings (AGMs), which must be held within six months of the conclusion of the financial year. Following the AGM, businesses have one month to submit their financial statements and an additional 60 days to file their annual returns. Failure to meet these deadlines results in a penalty of ₹100 per day.
Consequently, the deadline for submitting financial statements falls at the end of October, while the annual returns must be filed by the end of November. It’s worth noting that approximately 1.5 million active companies are obligated to submit these statutory documents in the current fiscal year.
The Ministry’s advisory has come in light of the government’s decision to allow companies to file their annual reports and financial statements using the older version of the forms, known as version two. This approach was adopted to prevent any potential disruptions during the filing season. Implementing the latest high-security forms just before the deadline could have created challenges for businesses, and the government sought to ensure a smooth transition.
While more than 50 other statutory filing requirements have already migrated to the new high-security forms, the Ministry also provided relief in terms of extending the deadline for filing these documents without incurring additional fees. This reflects the government’s commitment to supporting businesses during the transition.
Looking ahead, following the completion of the current filing season, the forms for annual returns and financial statements will be migrated to the new version, which incorporates two-factor authentication. This step aims to enhance security measures and streamline the filing process, ultimately benefiting both companies and regulatory authorities.
The Ministry of Corporate Affairs’ advisory underscores the importance of adhering to the stipulated deadlines for filing annual returns and financial statements for FY23. By doing so, businesses can avoid incurring extra fees and ensure compliance with legal requirements. The flexibility in allowing the use of older forms demonstrates the government’s commitment to facilitating a seamless transition and supporting businesses as they navigate the evolving regulatory landscape. This move not only ensures timely and accurate filing but also promotes transparency and accountability in the corporate sector.