Stay Ahead of the Curve: Upcoming Compliance Deadlines

As we approach the latter part of 2024, corporate entities in India must be cognizant of several critical compliance requirements. These obligations, primarily under the Companies Act, 2013, and other regulatory frameworks, ensure that companies maintain proper governance, transparency, and legal adherence. This article outlines the key compliance obligations that companies need to fulfill till 30th November 2024 and how ComplyQuick, your comprehensive compliance solution platform, can assist in navigating these requirements efficiently.

1. Board Meetings Compliance

The Secretarial Standards (SS-1) issued by the Institute of Company Secretaries of India (ICSI) mandate specific compliance related to Board Meetings. Till 30th November 2024, companies must ensure the following:

• Frequency of Board Meetings: As per SS-1, a minimum of four Board Meetings must be held every year, with a maximum interval of 120 days between two consecutive meetings. Companies must ensure that the third or fourth Board Meeting, as applicable, is scheduled within this period if not already conducted. For Small companies, as defined under the Companies Act, 2013, are required to hold at least two Board Meetings during the calendar year, with a minimum gap of 90 days between the two meetings in each half of the calendar year.
• Agenda and Notice Requirements: The agenda for Board Meetings must be circulated to all directors at least seven days before the meeting. Companies should ensure that all relevant documents are attached, and the meeting is conducted as per the scheduled agenda.
• Quorum Requirements: The quorum for a Board Meeting is generally one-third of the total strength of the Board or two directors, whichever is higher. Companies should verify the quorum before proceeding with the meetings.

2. Filing of Financial Statements

For companies with a financial year ending on 31st March 2024, the due date for filing financial statements (AOC-4) with the Registrar of Companies (ROC) is 30th September 2024. The filing must include:

Balance Sheet: Audited balance sheet as at the end of the financial year.

• Profit and Loss Account: The audited profit and loss account for the financial year.
• Cash Flow Statement: For companies required to prepare cash flow statements, the same must be submitted.
• Directors’ Report: The Directors’ Report, which must include a range of disclosures, including the performance of the company, risk management policy, and internal financial controls, should be approved by the Board and presented at the AGM.

Notes to Accounts and Auditors’ Report: All accompanying notes and the auditors’ report must be included in the filing

3. Annual General Meeting (AGM) Compliance

The AGM for the financial year 2023-2024 should be held by 30th September 2024. The compliance requirements include:

• Notice of AGM: As per Section 101 of the Companies Act, 2013, notice of the AGM must be sent to all shareholders, directors, and auditors at least 21 clear days before the meeting.
• Filing of Resolutions: Resolutions passed at the AGM, including the adoption of financial statements, declaration of dividends, appointment or reappointment of directors, and auditors, must be filed with the ROC in e-Form MGT-14 within 30 days of the AGM.
• Directors’ Report: The Directors’ Report, which must include a range of disclosures, including the performance of the company, risk management policy, and internal financial controls, should be approved by the Board and presented at the AGM.
• Annual Return Filing (MGT-7/MGT-7A): All companies, including small companies, are required to file their annual return with the Registrar of Companies. For most companies, this is done through Form MGT-7, while small companies and One Person Companies (OPCs) file through Form MGT-7A. The due date for filing these forms is within 60 days from the date of the Annual General Meeting (AGM).

4. Quarterly Compliance Filings (Q2 FY 2024-25)

Public listed companies and other specified entities must file their quarterly financial results for the second quarter (Q2) of FY 2024-25 by 14th November 2024. This filing must be done with the stock exchanges where the company’s securities are listed. The quarterly compliance includes:

• Limited Review Report: The financial results must be accompanied by a limited review report from the statutory auditors.
• Corporate Governance Report: Listed entities are also required to submit the Corporate Governance Report for Q2 by 15th October 2024, detailing compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

5. Compliance with CSR Requirements

Companies meeting the threshold criteria specified under Section 135 of the Companies Act, 2013, are required to spend at least 2% of their average net profits over the last three years on Corporate Social Responsibility (CSR) activities. The period for completing the CSR expenditure is the financial year, but monitoring and ensuring adherence to these activities during this period is crucial. Companies should ensure:

• Compliance Requirements: Companies that meet the criteria specified under Section 135 of the Companies Act, 2013, are required to file their Corporate Social Responsibility (CSR) report using Form CSR-2. This form must be filed as an addendum to Form AOC-4 or AOC-4 XBRL within the stipulated time, typically by the due date for filing the financial statements.
• CSR Committee Meetings: At least one CSR Committee meeting should be held during this period to review the progress of ongoing projects and plan for future activities.
• Reporting and Disclosure: Details of CSR activities undertaken, along with the expenditure, must be included in the Directors’ Report and disclosed on the company’s website.

6. Income Tax and GST Compliance

Several direct and indirect tax compliances are due during this period:

Income Tax Compliance:

• Tax Audit Report Filing: Companies and LLPs required to undergo a tax audit must file their tax audit reports by 30th September 2024.
• Income Tax Return Filing: For companies tax audit, the due date for filing income tax returns for AY 2024-25 is 31st October 2024. For audited entities, the due date is 30th November 2024.

GST Compliance:

• GSTR-3B Filing: Monthly GSTR-3B returns for the months of August, September, and October 2024 must be filed by the 20th of the subsequent month.
• GSTR-1 Filing: The monthly or quarterly GSTR-1 returns (for taxpayers who opt for quarterly filing) for the months of August, September, and October 2024 must be filed by the 11th of the subsequent month

7. Compliance with the Companies (Auditor’s Report) Order, 2020 (CARO 2020)

For audit reports pertaining to the financial year ending 31st March 2024, companies need to ensure compliance with CARO 2020. Auditors are required to include detailed information about various aspects of the company’s operations and finances, including:

• Inventory Management: Whether physical verification of inventory was conducted at reasonable intervals.
• Loan Guarantees: Whether the company has granted any loans or advances that may be prejudicial to the interests of the company.
• Compliance with Laws: Detailed commentary on whether the company has complied with applicable laws and regulations, particularly in relation to income tax, GST, and other statutory dues.

8. Statutory Registers and Records Maintenance

Companies must ensure that all statutory registers are updated, including the Register of Members, Register of Directors and Key Managerial Personnel, Register of Charges, and the Register of Contracts and Arrangements in which directors are interested. Regular updating of these registers is critical for compliance during this period.

9. Compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015

Listed companies must ensure compliance with the SEBI (Prohibition of Insider Trading) Regulations, 2015, especially regarding:

• Trading Window Closure: The trading window should be closed during the time when unpublished price-sensitive information is available, typically around the time of quarterly financial results.
• Disclosures by Insiders: Any trade by insiders above the prescribed threshold must be reported to the company and the stock exchanges within two trading days.

Conclusion

The period till 30th November 2024 presents numerous compliance challenges for companies. However, with ComplyQuick, you can manage these obligations seamlessly. Our platform is designed to simplify compliance processes, reducing the burden on your team and ensuring that all regulatory requirements are met without hassle. Whether it’s managing meetings, filing returns, or maintaining statutory records, ComplyQuick is your go-to solution for efficient, reliable, and compliant business operations.

Stay ahead of the compliance curve—choose ComplyQuick for a smoother, faster, and more efficient compliance experience.