By examining the bank balances, bookkeeping records, and financial transactions, the statutory audit compliances are conducted to ascertain whether a business gives correct facts of the financial condition.
- A company's statutory auditor is chosen.
- The company's auditors will complete the yearly accounts.
Annual ROC Filings
The Private Limited Companies must file the annual accounts and returns disclosing the details of its shareholders, directors, etc., to the companies' registrar.
As a part of the annual filing, the following forms are to be filed with the ROC:
Form MGT-7 (Annual returns) must be filed within 60 days of holding the annual general meeting.
Annual General Meeting
A meeting of the shareholders must be held once a year within six months of the end of the fiscal year.
AGMs are convened to approve financial statements, declare dividends, appoint or re-appoint auditors, award commissions, and pay directors, among other things.
The meeting takes place on a day that is not a public holiday during regular business hours. It must take place at the company's registration or in the city, village, or municipality where the registered office is located.
Board Meeting
Within 30 days of the business's incorporation, the Board of Directors of that company must convene for the first time.
Every three months, the board should meet four times, with a minimum of two directors or one-third of the total number of directors present, whichever is higher.
The discussion from the meeting must also be written down, included in the meeting minutes, and kept on file at the registered office of the firm.
Seven days before to the meeting, a notification about the time and reason for the gathering should be sent out.
Directors Report
Every year, the Director is required to provide information regarding his directorships in other firms. Giving the corporation a written proclamation each year will accomplish this.
