The Companies and Intellectual Property Commission (CIPC) emphasizes the importance of compliance with the Companies Act of 2008, particularly regarding the preparation and approval of annual financial statements (AFS). Under Section 30 (1) of the Act, companies are required to prepare and approve their AFS within six months after their financial year ends. This includes auditing the AFS for public and state-owned companies, as well as other specified companies, and having them independently reviewed where required.
Many companies have been found non-compliant with these requirements. Failure to adhere can lead to investigations and the possible imposition of administrative penalties and a negative compliance record as per Section 171 of the Act. Companies must ensure timely preparation of their financial statements to avoid these consequences.
Read more in CIPC Notice 33 of 2024.
