Preparation of Financial Statements

• An OPC must prepare its annual financial statements by the Companies Act, 2013, and applicable accounting standards.
  
• The financial statements must include a Balance Sheet, Profit and Loss Account, and Notes to Accounts.
  
• Though a Cash Flow Statement is typically required for companies, OPCs are exempt unless voluntarily included.
  
• The statements must reflect a true and fair view of the company’s financial position and operations.
  
• All financial records must be maintained at the company’s registered office.
  

Statutory Audit Requirement

• Every OPC is required to have its accounts audited annually by a qualified Chartered Accountant in practice.
  
• The auditor’s report must be attached to the financial statements before filing.
  
• The audit verifies that the financial statements are free from material misstatement and are prepared by applicable laws.
  
• The auditor also ensures that all company records and accounting practices are compliant.
  
• Even dormant or non-operational OPCs are subject to audit.
  

Filing with the Registrar of Companies (RoC)

• Audited financial statements must be filed with the Registrar of Companies using Form AOC-4.
  
• Filing is mandatory even if there is no income or minimal activity in the financial year.
  
• The form must be submitted within the prescribed deadline to avoid late fees.
  
• A valid Digital Signature Certificate (DSC) is used to sign the form, and a Chartered Accountant’s certification is often required.
  
• These filings become part of the public record on the Ministry of Corporate Affairs (MCA) portal.
  

Record-Keeping and Documentation

• The OPC must maintain proper books of accounts, either manually or electronically, at the registered office.
  
• Books must be kept under Schedule III of the Companies Act and reflect all financial transactions.
  
• Supporting documents such as invoices, bank statements, ledgers, and vouchers must be retained.
  
• The company must also maintain statutory registers and records of board decisions or resolutions.
  
• These records must be kept for a minimum period as prescribed under the law for audit and inspection purposes.
  

Director’s Responsibility and Certification

• The sole director or board (if more than one director) must approve and sign the financial statements before submission.
  
• A declaration of compliance and responsibility for the accuracy of financials must be made by the director.
  
• The director ensures that filings are done on time and tax and regulatory obligations are met.
  
• Delayed or false reporting can result in penalties, disqualification, or other regulatory actions.
  
• Proper and timely financial reporting reflects the OPC’s credibility, financial health, and legal compliance.