ROC Compliances – Producer Company

ANNUAL COMPLIANCES FOR PRODUCER COMPANY

Compliance plays a major role for any company. We have divided the yearly compliances for a producer company on a quarterly basis.

1st Quarter

 April to June

Serial No. Forms Details Penalty
1. MBP-1

Disclosure of Interest

Every Director of the Company in the First Meeting of the Board of Directors in each Financial Year will disclose his interest in other entities. The director in default shall be punishable with imprisonment which may extend up to 1 year or with a fine which may extend to a maximum of Rs 1 lakh or with both.
2. DIR- 8

Disclosure of non-disqualification

Every Director of the Company in each Financial Year will file with the Company disclosure of non-disqualification. If a company contravenes any of the provisions of this Chapter and for which no specific punishment is provided therein, the company and every officer of the company who is in default shall be punishable with a fine which shall not be less than Rs. 50,000  but which may extend to Rs. 5,00,000.
3. Form MSME 1 Every Company whose payment to MSME vendors are pending for more than 45 days shall file MSME-1 (Half Yearly) Penalty for Non- Filing of MSME-1 imprisonment up to 6 months or a penalty of Rs. 25000 to Rs. 3 lakh or both.
4. DPT-3 Company if accept deposits during the year then it is required to file a return of deposits within 30 days of the end of the financial year. Not filing Form DPT 3 within the given due dates shall attract a penalty of Rs 5,000 and Rs 500 per day in case of continuing default, on the company and its officers in default.

2nd Quarter

July to September

Serial No. Forms Details Penalty
1. Director’s Report Directors’ Report will be prepared by the mention of all the information required for Small Company under Section 134. It should be signed by the “Chairperson” authorized by the Board, where he is not so authorized by at least 2 Directors. If a company contravenes the provisions of this section, the company shall be punishable with a fine which shall not be less than Rs. 50,000 but which may extend to Rs. 25, 00,000 rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to three years or with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees, or with both.
2. AGM Every company shall in each year hold an annual general meeting within 6 months of the closing of the Financial year i.e. before 30 September. If any company contravenes the provision, the company and every officer of the company who is in default shall be punishable with a fine which may extend to Rs. 1,00,000 and in the case of continuing default, with a further fine which may extend to Rs. 5,000 for every day during which such default continues.
3. Notice of AGM The company must give a clear 21 days’ notice to its members for calling the AGM. If any default is made in complying with the provisions of this section, the company shall be liable to a penalty of Rs. 25,000 and every officer of the company who is in default shall be liable to a penalty of Rs. 5,000.
4. DIR-3 KYC Every individual who is allotted DIN as on 31st March of a financial year must submit his KYC on or before 30th September of the immediately next financial year if filed after the due date, for DIN status ‘Deactivated due to non-filing of DIR-3 KYC’ a fee of Rs. 500 shall be payable from 21st September to 05th October 2018(Both days inclusive). From 06th October onwards a Fee of Rs. 5000 becomes payable.

3rd Quarter

October to December

Serial No. Forms Details Penalty
1. MGT-7 Annual Return Every Small Company will file its Annual Return within 60 days of holding of Annual General Meeting. Annual Return will be for the period 1st April to 31st March. Rs. 100/- per day penalty for late filing.
2. AOC-4 Financial Statement The company is required to file its Balance Sheet along with a statement of Profit and Loss Account and Director Report in this form within 30 days of holding of Annual General Meeting. Rs. 100/- per day penalty for late filing.
3. MGT-8 A Private Company if having paid-up share capital of 10 Crore or more or turnover of Rs. 50 crore or more shall be certified by a Company Secretary in Practice. If CS provides a false certificate the fine born by CS will not be less than Rs 50,000 and might extend to Rs. 5 Lakh.
4. ADT-1 The auditor will be appointed for the 5 years and form ADT-1 will be file for a 5-year appointment within 15 days of the conclusion of AGM. Late filing of ADT-1 up to 30 days is 2 times of normal fees.

4th Quarter

January to March

Serial No. Forms Details Penalty
1. Board Meetings Every Company shall hold a minimum of 4 meetings of its Board of Directors every year in such a manner that the maximum gap between two meetings should not be more than 120 days. The company should hold at least 1 Board Meeting every quarter of the calendar year. The company shall be liable to a penalty of twenty-five thousand rupees and every officer of the company who is in default shall be liable to a penalty of Rs. 5,000 for not observing and following Secretarial Standard – 1.
2. Maintenance of Registers The company will maintain the following mandatory Registers-Register of Director, Director Shareholding, Members, Register of Loan, Guarantee, Investment made by the Company, Register of Contract with Related Parties. The company and every officer of the company who is in default shall be punishable with a fine which shall not be less than Rs. 50,000 but which may extend to Rs. 3,00,000 rupees and where the failure is a continuing one, with a further fine which may extend to Rs. 1,000 for every day, after the first during which the failure continues.

From the above comparison, we get an overview of how important is the Compliances for any producer Company.

Above mentioned Compliances are mandatory yearly compliances for the Producer Company. Except above, there may be event-based compliances for the Producer Company.

Non-compliances hefty attracts a penalty. Hence, it is always advisable to be compliant.

*The entire contents of this document have been prepared based on relevant provisions and as per the information existing at the time of the preparation. I assume no responsibility for the consequences of the use of such information. In no event shall we be liable for any direct, indirect, special, or incidental damage resulting from, arising out of, or in connection with the use of the information.