Governance Maturity India.
Know exactly where you stand.

Annual mandatory ROC filings for Indian private limited companies: (1) Annual Return (Form MGT-7 or MGT-7A) — within 60 days of AGM; (2) Financial Statements (Form AOC-4 or AOC-4 NBFC) — within 30 days of AGM; (3) ADT-1 — appointment of auditor (within 15 days of AGM); (4) DIR-3 KYC — directors' KYC (annual, by 30 September); (5) MSME-1 — outstanding payments to MSMEs (half-yearly); (6) DPT-3 — return of deposits (annual). Missed filings attract additional fees (₹100–200/day) and eventually disqualify directors. IBEAN's Virtual CFO tracks all filing deadlines and coordinates with the company secretary.

The Audit Committee is a board sub-committee that oversees the financial reporting process, statutory audit, internal audit, and risk management. Mandatory for: listed companies, public companies with paid-up capital above ₹10Cr or turnover above ₹100Cr or outstanding loans above ₹50Cr; NBFCs with assets above ₹50Cr. For private limited companies below these thresholds, an audit committee is not mandatory but is strongly recommended when turnover exceeds ₹25Cr or the business is approaching institutional fundraising. The audit committee must have at least 3 directors with a majority of independent directors.

Related-party transactions (RPTs) are transactions between the company and its directors, key managerial personnel, promoters, or their relatives — or with other companies where these parties have significant interest. Common Indian SME RPTs: loans to/from promoters, rent paid to promoter-owned property, transactions with group companies. Governance requirements: RPTs must be at arm's length pricing (same terms as unrelated parties), disclosed in the board meeting, approved by the audit committee (if applicable), and disclosed in the annual report. Undisclosed or non-arm's-length RPTs are a major due diligence red flag for investors and acquirers.

Banks assess governance quality as part of MSME loan credit evaluation: (1) Statutory compliance — any ROC default or non-compliant director KYC raises a compliance flag; (2) Audit quality — audited accounts from a reputable CA firm with clean auditor opinion; (3) Director credit history — CIBIL score and prior default history of directors; (4) Related-party transparency — undisclosed related-party transactions create trust deficit; (5) Management information — ability to provide monthly MIS to the bank demonstrates financial management discipline. IBEAN's Virtual CFO ensures your governance posture supports your banking relationship.