AOC 4 for NBFCs

Earlier this year, The Ministry of Corporate Affairs issued a notification announcing amendment to the Companies (Accounts) Rules, 2014 , that all Non-Banking Financial Companies (NBFC) that are required to comply with the Indian Accounting Standards (Ind AS) must file their financial statements along with newly introduced Form AOC-4 NBFC (Ind AS) and Form AOC-4 CFS NBFC (Ind AS)

All About Form AOC-4 NBFC (Ind AS) and Form AOC-4 CFS NBFC (Ind AS)

The amendment made to Rule 12 of the Companies (Accounts) Rules, 2014 now includes a sub rule 1A referring to the NBFCs

“12. Filing of financial statements and fees to be paid thereon : (1) Every company shall file the financial statements with Registrar together with Form AOC-4. (1A) Every Non-Banking Financial Company (NBFC) that is required to comply with Indian Accounting Standards (Ind AS) shall file the financial statements with Registrar (ROC) together with Form AOC-4 NBFC (Ind AS) and the consolidated financial statement, if any, with Form AOC-4 CFS NBFC (Ind AS)”

The companies that are classified as NBFCs are:

• Financial institution.
• Nidhi and chit fund companies
• Housing finance companies.
• Merchant banking companies.
• Non-banking institutions having lending & acceptance of deposits as its principal business activity.

AOC 4 for NBFCs Applicability criteria:

The table below is a snapshot of the classes of NBFCs required to comply with the new requirements.

AOC-4 CFS NBFC Applicability

Consolidated Financial Statements: Companies with subsidiaries or affiliates are required to prepare CFS in accordance with the Companies Act, 2013.

Reporting Requirements: CFS must include financial data from all subsidiaries and associates, in compliance with accounting standards and regulations.

Filing CFS: NBFCs meeting the necessary criteria must file CFS along with e-Form AOC-4 NBFC, ensuring comprehensive financial reporting

Filling e-form AOC-4 NBFC

The filing of e-Form AOC-4 NBFC is a crucial step for Non-Banking Financial Companies (NBFCs) in India, ensuring compliance with financial reporting requirements. Here’s a comprehensive guide on how to navigate this process effectively:

Segment I: Information and Particulars Regarding the Balance Sheet (Part A)

• Company Information: Enter the company’s authorized capital, the number of members, and its CIN. Clicking the pre-fill button will automatically populate the company’s name, email ID, registered office, and incorporation date.
• Financial Year Details: Enter the start and end dates of the financial year that the financial statements pertain to.
• Approval Information: Provide the date of the Board of Directors’ meeting where the financial statements were approved, along with the nature of the statements, SRN of form INC-28, and SRN of form AOC-4 NBFC (Ind AS).
• Signatories: Enter the details of the directors, secretary, manager, CEO, and CFO who signed the financial statements, as well as the date of the meeting approving the Board’s report and details of directors who signed it.
• Auditor Information: Provide the date the financial statements were signed by the auditors, details of holding or subsidiary companies if applicable, and the company’s type, along with information on the applicability of Schedule III of the Companies Act, 2013.

Miscellaneous: Include information on consolidated financial statements, books maintained in electronic form, and any service providers.

Segment I: Information and Particulars Regarding the Balance Sheet (Part B)

Part B requires details regarding the balance sheet, including the share capital raised during the reporting period, cost records, and cost audit information.

Segment II: Information and Particulars Regarding the Profit and Loss Account

This segment covers the company’s profit and loss account, financial parameters, and details related to its principal products or services.

Segment III: Corporate Social Responsibility (CSR)

• CSR Applicability: Mention the applicability of CSR under Section 135 of the Companies Act, 2013, and its rules, along with the company’s net worth and turnover.
• CSR Expenditure: Note the average net profit over the last three financial years and the prescribed CSR expenditure, which is 2% of this profit.
• CSR Details: Provide details on the CSR spending activity in a tabular format, including the names, emails, and addresses of any implementing agencies.

Segment IV: Disclosure on Related Party Transactions

Provide detailed particulars on contracts or arrangements with related parties, including arm’s length transactions.

Segment V: Auditor’s Report

• CAG Comments: For government companies, mention if the Comptroller and Auditor General (CAG) has commented on the audit report under Section 143 of the Companies Act, 2013.
• Audit Remarks: Note the remarks made by the auditors and the applicability of CARO.

Segment VI: Miscellaneous

Attach various documents as provided in the form.

Filing e-Form AOC-4 NBFC: Due Date and Fees & Penalty

The filing of e-Form AOC-4 NBFC is essential for Non-Banking Financial Companies (NBFCs) in India to comply with financial reporting standards. Here’s a comprehensive overview of its due date and fees:

Due Date for Filing e-Form AOC-4 NBFC

NBFCs must file e-Form AOC-4 NBFC within 30 days of conducting their AGM. The AGM is typically held before September 30th, following the close of the financial year, making the filing deadline usually October 29th every year.

Filing Fees for e-Form AOC-4 NBFC

The fees for filing e-Form AOC-4 NBFC vary based on the company’s nominal share capital, as follows:

• Less than Rs. 1,00,000: The fee is Rs. 200.
• Rs. 1,00,000 to Rs. 4,99,999: The fee is Rs. 300.
• Rs. 5,00,000 to Rs. 24,99,999: The fee is Rs. 400.
• Rs. 25,00,000 to Rs. 99,99,999: The fee is Rs. 500.
• Rs. 1,00,00,000 or more: The fee is Rs. 600.

Late Fee for Filing e-Form AOC-4 NBFC

A penalty of Rs.100 per day of default is imposed for delayed filing of e-Form AOC-4 NBFC. To avoid this, NBFCs should ensure timely filing of their financial statements and other documents with the ROC.

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FAQs on the Applicability of e-Form AOC-4 NBFC

How does the Companies Act define NBFCs?

NBFCs are defined in clause (f) of Section 45I of the Reserve Bank of India Act, 1934. This definition includes financial institutions that are companies, non-banking institutions that accept deposits or lend under any arrangement, and other non-banking institutions as specified by the RBI with Central Government approval.

Which NBFCs are required to file e-Form AOC-4 NBFC?

The Companies (Indian Accounting Standards) Rules, 2015, mandate the filing of e-Form AOC-4 NBFC for all NBFCs with a net worth of Rs.500 crore or more, their subsidiaries, holding companies, associate companies, or joint ventures. Additionally, listed or listing NBFCs, and unlisted NBFCs with a net worth between Rs.250 crore and Rs.500 crore, along with their affiliates, must comply.

Are listed NBFCs required to file e-Form AOC-4 NBFC?

Yes, listed equity or debt NBFCs, or those in the process of listing, along with their subsidiaries, holding companies, associate companies, or joint ventures with a net worth of less than Rs.500 crore, must file e-Form AOC-4 NBFC.

Do unlisted NBFCs need to file e-Form AOC-4 NBFC?

Unlisted NBFCs and their subsidiaries, holding companies, associate companies, or joint ventures with a net worth between Rs.250 crore and Rs.500 crore are required to file e-Form AOC-4 NBFC.

Are subsidiaries of NBFCs also required to file e-Form AOC-4 NBFC?

Yes, subsidiaries, holding companies, associate companies, and joint ventures of NBFCs are also required to file e-Form AOC-4 NBFC if they meet the applicable net worth criteria.