The compliance levels of corporates is rising and we are confident that a majority of companies in the category of PSUs, public-listed companies and those having authorised capital of over Rs 1 crore will fully comply when they file their returns by December this year, an official of the corporate affairs ministry said told FE on the sidelines of a CII function on corporate governance.
The official said growth in compliance levels was evident in the last two years, and added the government was also dashing off notices to defaulting directors in case of delay.
The records of filings by end of March 2005 show 50% were in compliance while the figure rose to 70% for March 2006. We feel by the time filings are made for records ending March 2007, the compliance level will rise to 90%, he said.
As part of statutory filing requirements, companies are required to file their annual returns and balance sheets with the registrar of companies (RoCs). After the end of a financial year, companies are required to hold AGMs within the next six months. Thereafter, they have to file their balance sheets in the next one month and annual returns two months later.
The MCA21 programme, kickstarted last year, focuses on e-filing of company documents. The procedure requires certain formalities like obtaining Director Identification Number, Digital Signature Certificate for at least one director and registration with the ministry of company affairs.
Earlier, speaking at the seminar, corporate affairs minister PC Gupta said corporates should ensure economic growth was evenly spread and all sections benefited from it.