Every Company after completion of its financial year is required to collect its financial figures and present them in the form of Financial Statements. These financial reports determine the performance of the Company in terms of its performance during the year and details of assets and liability to be captured under these reports. Every Company is required to prepare their Financial Statements and report to their shareholders as well as the Department e.g. Income Tax or Registrar of Companies.

Here, in this article, an attempt has been made to provide applicability and procedure for the preparation and adoption of Financial Statement by a One Person Company. Lets discuss the same in detail:

Preparation of Financial Statement

Every Company including a One Person Company is required to prepare a financial statement for the Financial year and report its performance to the Shareholder, the Registrar of Companies, Income Tax Department and any other authority as may be applicable. Pursuant to Section 2(40) of the Companies Act, 2013, the following documents shall form part of the financial statement:

(i) a balance sheet as at the end of the financial year; (ii) a profit and loss account, or in the case of a company carrying on any activity, not for profit, an income and expenditure account for the financial year; (iii) a statement of changes in equity, if applicable; and (iv) any explanatory note annexed to, or forming part of, any document referred to in sub-clause (i) to sub-clause (iii)

Being the most confidential and performance measuring documents, the financial statement must be prepared with the utmost care and diligence. All necessary steps need to be taken to maintain the accuracy and authenticity of the information provided.

Approval in the Board Meeting

Since provision related to Section 173 related to Board Meeting and Section 174 related to Quorum for Meetings of Board is not applicable to a One Person Company having One Director. In that case, Financial Prepared and finalized needs to be signed by the single Director and shall be forwarded to the Auditors for their comments and Report. The Statutory Auditor shall perform the audit and send the signed copy of the same to the Company along with their comments in the form of Audit Report.

Since the provision for conducting of General Meeting is not applicable to One Person Company (OPC), hence no Annual General Meeting is to be conducted. Further, the Financial Statement duly signed by the Single Director and Auditor shall be deemed to be approved and adopted by the Company. Directors report shall be approved, once the same is signed by the Director of the Company.

Preparation of Annual Return

Every company shall prepare a return (hereinafter referred to as the Annual Return) in the prescribed form containing the particulars as they stood on the close of the financial year regarding—

• – It’s Registered Office, Principal Business Activities, particulars of its Holding, Subsidiary and Associate Companies;
• – It’s Shares, Debentures, and other securities and Shareholding Pattern;
• – It’s Members and Debenture-Holders along with changes therein since the close of the previous financial year;
• – It’s Promoters, Directors, Key Managerial Personnel along with changes therein since the close of the previous Financial Year;
• – Meetings of Members or a class thereof, Board and its various committees along with attendance details;
• – Remuneration of Directors and Key Managerial Personnel;
• – Penalty or Punishment imposed on the Company, its Directors or Officers and details of compounding of offenses and appeals made against such penalty or punishment;
• – Matters relating to certification of compliances, disclosures as may be prescribed;
• – Details, as may be prescribed, in respect of shares held by or on behalf of the Foreign Institutional Investors; and
• – Such other matters as may be prescribed,

Provided that in relation to One Person Company and small company, the Annual Return shall be signed by the company secretary, or where there is no company secretary, by the Director of the company.

Due Dates

The duty date for filing Income Tax Return of the Company is 30^th September. In the case of OPC, Financial Statements needs to be filed with the Registrar of Companies within 180 days of closure of the financial year. Hence, the due date for filing E-form AOC-4 is the 28^th September. Every OPC shall file their Annual Return within 60 days after 180 days from the end of the closure of Financial Year.

Sl. No.	Particulars	Due Date
1.	Filing of Form AOC-4	27th September
2.	Filing of Income Tax Return	30th September
3.	Filing of MGT-7	28th November

Fines and Penalties

Delay in the filing of Income-tax return would attract a penalty which may extend to Rs. 10,000. In the case of ROC forms, the delay would attract an additional fee of Rs. 100/- per day.

Conculsion

In case of OPC, no General Meeting is to be conducted and the financials are deemed to be approved immediately after the same are signed by the Auditor and the Directors, Hence, the same can be filed due on time. In case of any issue or queries, feel free to contact us @ contact@complianceship.com. You can also visit our website www.complianceship.com Further, you can also WhatsApp us @ +91 80102 33172.