Difference between MGT-7 and AOC-4
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Difference between MGT-7 and AOC-4

Companies in the corporate world must comply with various requirements laid down by the Companies Act, 2013. One of them includes annual Roc filling, which includes filling of MGT-7 & AOC-4, which must be filed annually; these are called annual filling regarding the Companies Act, which the company has to do at the end of every year.

What is MGT-7 & AOC-4?
MGT-7 is an e-form provided by the ministry of corporate affairs to fill in details relating to annual returns. MCA maintains the record of MGT-7 filed by the companies based on the statement of correctness given by the company. In contrast, AOC-4 is also an e-form that must be filed to fill the annual financial statements for each financial year with the registrar of companies (ROC).

Who is required to file MGT-7 & AOC-4?

MGT-7 All companies reported under the Companies Act, 2013 are required to file MGT-7 for its annual returns.
AOC-4 All companies reported under the Companies Act, 2013 are required to file AOC-4 for filling financial statements.
AOC-4-XBRL
  • All companies registered with any stock exchange in India and their Indian subsidiaries.
  • All companies with a capital of 5 crores or above.
  • All companies with a turnover of 100 crores or more.
  • All companies which were enclosed till date under the companies rules 2011.

Purpose

AOC-4

MGT-7
A financial statement of a company represents the financial position of the company. It is also the way of communication between the board of directors & shareholders. Companies are required to file AOC-4 for filling their financial statements. The form MGT 7 is filed for annual return; however it restrains all the particulars as similar to emerge in the closing of the financial year.

Due dates for filing

AOC-4

MGT-7
Under normal circumstances, form AOC 4 should be filed within 30 days from the last date of the company’s annual general meeting (AGM) held in a relevant assessment year. Form MGT-7 is to be filed within 60 days from the date of the company’s annual general meeting.

Details required to be filled

AOC-4

MGT-7
Companies general details — such as its corporate identity number (CIN); details about its director/s, manager, CEO, CFO and all who signature company’s financial statements and board report; factors about auditor and SRN of ADT-1 etc. Details of registered office, primary business activities, details of its holding, subsidiary and associate companies.
Information relating to the balance sheet for the financial year. Details of shares, bonds and other securities and shareholding pattern of the company financial obligations of the company.
Information relating to the profit & loss for the financial year. Details of members and debenture-keepers and changes associated with them since the end of the last financial year.
Information about the share capital raised during the year. Details promoters, directors, key managerial personnel along with changes associated with them since the end of the last financial year.
Details about the company’s principal products or services Details of meetings of members or a class thereof, board and its numerous committees across with attendance.
Factors relating to corporate social responsibility (CSR) reporting. Details of payment of directors and principal managerial personnel.
Details regarding the related party transaction. Details of shareholding format.

Attachments required:

AOC-4

MGT-7
Board report along with annexures: MGT-9, AOC-2, CSR Report, corporate governance report, secretarial audit report etc., as per the nature of the company and financial statements. List of shareholders, debenture holders, share transfer, MGT-8.

Together, these forms constitute annual Roc fillings required by the company to comply with every year. Non-Compliance with these attracts penalties as given below:

AOC-4

MGT-7
  • Delay up to 30 days – 2 times of usual filing fees.
  • More than 30 days and Up to 60 days – 4 times of usual filing fees.
  • More than 60 days and up to 90 days – 6 times of usual filing fees.
  • More than 90 days and up to 180 days – 10 times of usual filing fees.
  • More than 180 days and up to 270 days – 12 times of usual filing fees
 Rs. 100 per day up to to the date such non-filling continues.

A full-time practice requires a statement confirming the authenticity of the information entered in the form. Such a professional shall also digitally sign the document and declare that the information is verified.

We assist our clients in dealing with compliances related to company incorporation, business setup, ROC filings, winding up of the company etc. If you have any questions or wish to know more about  MGT-7 and AOC-4, kindly contact us.