Importance of Annual Report Filing

19-01-2026

Compliance with Law

Under the Companies Act, 2013, all companies must file annual financial statements and annual returns with the Registrar of Companies (ROC). This keeps the company in legal standing and prevents penalties, prosecution, or director disqualification if you miss deadlines.

Transparency & Governance

Annual filings provide critical information about:

• Financial health and audited accounts
• Shareholders, directors & corporate actions
• Corporate governance & compliance records
  These filings help investors, regulators, and the public understand the company’s operations.

Avoiding Penalties

Missing deadlines can lead to:

• Daily penalties (e.g., ₹100 per day for some ROC forms)
• Possible disqualification of directors
• Risk of the company being struck off the register
  These consequences can be serious for business continuity and reputation.

Audit & Tax Implications

Annual reports support tax filings and audits, linking ROC compliance with income tax returns for companies for each assessment year (like AY 2026-27).