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ANNUAL COMPLIANCE OF PRIVATE LIMITED COMPANY (XBRL)

 

According to the ComPANies Act, 2013, compliances for a private limited Company in India, have to be done in adherence to the laws, regulations and guidelines. The ROC, also known as the Registrar of ComPANies, is that sector of the Ministry of Corporate Affairs responsible for handling the compliance of every Company or firm that falls within its jurisdiction. 

 

The XBRL is a standardized communication language in electronic form for expressing financial statements or reports by the comPANies. Though it is only a method of presentation, the comPANies have to file them under section 137 of the ComPANies Act, 2013.

 

Eligibility criteria

Any Company which fulfils the following criteria has to file annual compliance. The following are the conditions: 

  1. All public comPANies who have been listed in a stock exchange in India, and their respective subsidiaries.
  2. Any Company which has an annual turnover of Rs. 100 crores or more
  3. Any Company which has a paid-up capital up to 5 crores or more.
  4. All comPANies which have to prepare their financial statements in accordance with ComPANies (Indian Accounting Standards) Rules, 2015 except insurance comPANies, banking comPANies, power comPANies and NBFCs

 

Guidelines to be kept in mind

 

The following are the guidelines which are to be kept in mind: 

  1. Within 30 days of the incorporation of the firm, the Company has to appoint a CA or an auditor for the auditing of the financial documents.
  2. The balance sheet and profit & loss account have to be prepared at the end of the financial year.
  3. This is mandatory, to get his accounts to be audited by the CA.

 

All about the meeting pROCedure

There has to be a minimum of 4 meetings of the Board of Directors of the Company and a minimum of 2 meetings in case of a small Company. This meeting has to be done on a quarterly basis in every financial year.  

 

Moreover, for a newly Incorporated Company, the Annual General Meeting has to be held within 18 months from the date of registration or 9 months from the date of closing of the financial year, whichever is earlier. After this, the meeting has to be held every 6 months prior to the ending of the financial year.

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FAQ - Frequently asked questions

What does XBRL mean?

XBRL stands for “eXtensible Business Reporting Language” and is a freely available, global framework which is used for exchanging business information.


What is a Private Limited Company?

A private limited company is that form of a company that is privately held by a director or a group of Directors for a small scale business. The liability of the members of this firm of a company is limited to the number of shares that are held by them.


What is the Companies Act 2013?

The Companies Act 2013 is an Act of the Parliament of India on Indian company law which regulates and governs the incorporation and responsibilities of a company, directors, dissolution of a company.


Within how many days should the CA be appointed? 

Within 30 days of the incorporation of the firm, the company has to appoint a CA or an auditor for the auditing of the financial documents.


How many meetings are supposed to be held in tenure of the financial year?

There has to be a minimum of 4 meetings of the Board of Directors of the company and a minimum of 2 meetings in case of a small company. This meeting has to be done on a quarterly basis in every financial year.


Who all are exempted from filing the financial statements?

All companies which have to prepare their financial statements in accordance with Companies (Indian Accounting Standards) Rules, 2015 except insurance companies, banking companies, power companies and NBFCs


Who all are exempted from filing the financial statements?

All companies which have to prepare their financial statements in accordance with Companies (Indian Accounting Standards) Rules, 2015 except insurance companies, banking companies, power companies and NBFCs