What is Annual Return of a Company?
As per Section 92 of Companies Act, 2013 every company is required to file an annual return with the Ministry of Corporate Affairs. The method that is used to submit annual return of a company is XBRL (eXtensive Business Reporting Language). The return is to be filed electronically in Form No. MGT-7. It contains the information about:
- Registered office of the company, its subsidiary, holding and associate companies
- Shareholding pattern along with shares, debentures and other securities
- Members and debenture-holders of the company at the end of financial year and changes thereon
- Promoters, key managerial personnel and board of directors at the end of financial year and changes thereon, if any
- Meetings held throughout the year along with attendance details
- Remuneration of key managerial personnel and directors
- Default committed by the company or its directors and officers. If yes, penalties and punishments attracted and appeals if any made against such default
- Compliances properly followed along with disclosures required by law
- Shares held by Foreign Institutional Investors or on behalf of them along with details like names, addresses, percentage shareholding etc.
- Other matters as may be prescribed from time to time.
The return is then to be signed by a director and company secretary. In case there isn't one then by a practicing company secretary. In case of a small company and One Person Company the return is to certified by a company secretary. If there isn't then by a director.
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Submission with Registrar of Companies (ROC)
As per Companies Act, 2013 a copy of annual return is to be filed with the ROC within 60 days of holding Annual General Meeting (AGM) of the company. In case AGM could not be held then it is to be submitted 60 days from the date AGM was supposed to be held along with the reasons why it couldn't.
The annual report also becomes part of the Board's report and its extract shall be submitted in Form MGT-9. The company shall also keep the extract open for inspection during business hours.
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