CIPC Reminder on Annual Financial Statements Compliance
The Companies Act of 2008, under Section 30(1) requires companies 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 and 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 Notice 26 of 2024.
