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Hello Auditor

What are the financial reporting formats for a Nidhi Company?

1. Balance Sheet and Statement of Profit and Loss

  • Nidhi Companies must prepare a Balance Sheet and Profit and Loss Account annually as per Schedule III of the Companies Act, 2013
  • The Balance Sheet includes share capital, reserves, member deposits, loan assets, and fixed assets
  • The Profit and Loss statement shows interest income from loans, interest paid on deposits, operating expenses, and net profit
  • These statements must be audited by a Chartered Accountant and approved by the Board
  • They form the basis for statutory filing with the Registrar of Companies

2. Cash Flow Statement and Notes to Accounts

  • Companies meeting specific thresholds must also prepare a Cash Flow Statement under Ind AS or AS-3
  • It includes cash flows from operating, investing, and financing activities
  • Notes to Accounts disclose key accounting policies, contingent liabilities, and detailed schedules for deposits and loans
  • Related party transactions and director remuneration must be properly reported
  • These details ensure financial transparency and compliance with auditing standards

3. Form AOC-4: Filing of Financial Statements

  • After Board and member approval, the audited financial statements must be filed using Form AOC-4 with the ROC
  • It includes balance sheet, profit and loss, cash flow, audit report, and board report
  • The form must be filed within 30 days of the annual general meeting (AGM)
  • The auditor’s report in Form ADT-1 and the auditor appointment status are cross-referenced
  • Late filing attracts additional fees and penalties as per MCA norms

4. Form NDH-3: Half-Yearly Return

  • Nidhi Companies must submit Form NDH-3 every six months, reporting deposits, loans, members, and Net Owned Funds
  • The form must be certified by a Chartered Accountant, Company Secretary, or Cost Accountant
  • It must be filed within 30 days from the end of each half-year (i.e., by 30th April and 31st October)
  • This return helps monitor adherence to the 1:20 deposit-to-NOF ratio and 10% unencumbered term deposit rule
  • The data must match the internal books and audit records

5. Other Registers and Statutory Books

  • Nidhi Companies must maintain various registers such as
    Register of Members
    Register of Deposits
    Register of Loans
    Minutes Book of Board and General Meetings
    Register of Charges (if any)
  • These registers are not submitted online but must be maintained and produced during audits or inspections
  • Regular updating ensures accuracy of reporting and supports compliance with ROC and MCA requirements

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