For any company registered in India, complying with the Ministry of Corporate Affairs (MCA) regulations is not just a formality; it is a legal obligation and the main part of this is the MCA annual audit and filing of returns with the Registrar of Companies (ROC). To neglect this can lead to serious penalties, fines and even the disqualification of Directors. This is where professional services, like those offered by Praman Advisors Private Limited, come in. They provide a streamlined, expert-led process to ensure your company remains compliant, allowing you to focus on what you do best—running your business.
1. Overview:
An MCA annual audit is a mandatory statutory audit for every company registered under the Companies Act 2013 regardless of its turnover, share capital or business activity. The primary goal is to ensure that a company's financial statements and statutory records are accurate, transparent and comply with all legal requirements. This process involves a meticulous examination of a company's financial records, internal controls and compliance with the Companies Act and other allied laws. The audit report, prepared by a qualified Chartered Accountant (CA), is then submitted to the MCA through various e-forms.
Engaging a professional service like Praman Advisors for your MCA audit offers several significant benefits:-
- Legal Compliance: Avoid hefty penalties and legal repercussions by ensuring all filings are submitted accurately and on time. Non-compliance of which may result in penalty of up to ₹5,000 per day for each day of default.
- Enhanced Credibility: A clean audit report boosts your company's reputation and credibility with stakeholders including investors, banks and customers. It demonstrates financial transparency and good corporate governance.
- Expert Guidance: The team at Praman Advisors, consisting of experienced CAs, Company Secretaries and lawyers, provides expert advice and handles the entire process from start to finish. This minimizes the chances of errors and ensures a smooth filing process.
- Time and Resource Savings: Outsourcing your MCA audit to us will free your valuable time and resources, allowing you to focus on core business operations and strategic growth of your company.
- Risk Mitigation: A thorough audit can identify potential financial risks, compliance gaps and internal control weaknesses, enabling you to take corrective actions proactively.
To conduct the MCA annual audit and filing, you will need to provide a set of essential documents. While the exact list may vary, here are some of the key documents generally required:-
- Financial Records: Audited financial statements including the Balance Sheet, Profit & Loss Account and Cash Flow Statement.
- Company Documents:
- Memorandum of Association (MoA) and Articles of Association (AoA).
- Certificate of Incorporation.
- PAN Card of the company and all directors.
- Board Resolutions for the approval of financial statements and the director's report.
- Statutory Registers:
- Register of Members, Directors and other Key Managerial Personnel.
- Register of Charges (if applicable).
- Taxation Records:
- Income Tax Return (ITR) and Tax Audit Report (if applicable).
- GST Returns.
- TDS/TCS returns and challans.
- Bank Records: All bank statements for the financial year and Bank Reconciliation Statements.
- Minutes of Meetings: Minutes of Board Meetings and the Annual General Meeting (AGM) held during the financial year.
The process for getting your MCA annual audit done through a service provider like Praman Advisors is straightforward and efficient:-
- Initial Consultation: You start with an initial consultation to discuss your specific requirements and gather an understanding of your company's status.
- Document Submission: You provide the necessary documents, which can often be uploaded through an online portal.
- Data Verification and Audit: A dedicated expert from Praman Advisors reviews all the submitted documents, conducts the audit as per the Companies Act and prepares the financial statements and audit report.
- Drafting of Forms: The team drafts the required MCA e-forms such as Form AOC-4 (for financial statements) and Form MGT-7 (for the annual return).
- Digital Signature: The director and auditor sign the forms digitally with their Digital Signature Certificates (DSC).
- Filing with MCA: The signed forms are filed on the MCA portal and you receive an official acknowledgement.
The fees for MCA annual audit and filing services typically depend on factors such as the company's authorized capital, turnover and the complexity of its transactions. A standard package for annual compliance including the audit, can start from around ₹8,990 onwards. These professional fees do not include government fees.
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The timeline for the MCA filing process is crucial to avoid late fees:
- Audited Financial Statements (Form AOC-4): Must be filed within 30 days of the Annual General Meeting (AGM).
- Annual Return (Form MGT-7): Must be filed within 60 days of the AGM.
- Director KYC (Form DIR-3 KYC): Must be filed annually by September 30.
It is important to remember that the AGM must be held within six months of the end of the financial year i.e. by September 30
Frequently Asked Questions
Yes, it is compulsory for all companies registered under the Companies Act 2013 to get their accounts audited annually, irrespective of their turnover or capital.
Late filing attracts a daily penalty of ₹100 for each day of delay for forms AOC-4 and MGT-7, in addition to other penalties and prosecution proceedings
No. The entire process is paperless and conducted online. Hence, scanned copies of required documents to your service provider will do the needful.
No, even a dormant or inactive company must comply with all annual filing requirements including the audit and submission of forms.
