{"id":34978,"date":"2022-01-17T16:44:57","date_gmt":"2022-01-17T11:14:57","guid":{"rendered":"https:\/\/www.cagmc.com\/?p=34978"},"modified":"2024-06-03T09:53:57","modified_gmt":"2024-06-03T04:23:57","slug":"whether-mgt-9-required-to-be-attached-with-directors-report","status":"publish","type":"post","link":"https:\/\/www.cagmc.com\/blog\/whether-mgt-9-required-to-be-attached-with-directors-report\/","title":{"rendered":"Whether Extract of Annual Return (Form MGT-9) required to be attached to Board\u2019s Report?"},"content":{"rendered":"<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone wp-image-34979 size-full\" title=\"Whether MGT-9 required to be attached with Directors Report?\" src=\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2022\/01\/Whether-Extract-of-Annual-Return-Form-MGT-9-required-to-be-attached-to-Boards-Report-1.png\" alt=\"Whether MGT-9 required to be attached with Directors Report?\" width=\"1200\" height=\"630\" srcset=\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2022\/01\/Whether-Extract-of-Annual-Return-Form-MGT-9-required-to-be-attached-to-Boards-Report-1.png 1200w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2022\/01\/Whether-Extract-of-Annual-Return-Form-MGT-9-required-to-be-attached-to-Boards-Report-1-300x158.png 300w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2022\/01\/Whether-Extract-of-Annual-Return-Form-MGT-9-required-to-be-attached-to-Boards-Report-1-1024x538.png 1024w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2022\/01\/Whether-Extract-of-Annual-Return-Form-MGT-9-required-to-be-attached-to-Boards-Report-1-615x323.png 615w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2022\/01\/Whether-Extract-of-Annual-Return-Form-MGT-9-required-to-be-attached-to-Boards-Report-1-400x210.png 400w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2022\/01\/Whether-Extract-of-Annual-Return-Form-MGT-9-required-to-be-attached-to-Boards-Report-1-292x153.png 292w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p>According to general practises, every company is required to prepare the annual return extract in Form MGT-9 before preparing the actual Annual Return in E-form MGT-7, which is submitted to <a href=\"https:\/\/www.cagmc.com\/roc-filing\/\">ROC<\/a> within 60 days of the AGM.<\/p>\n<p>The Form<a href=\"https:\/\/www.cagmc.com\/a-brief-overview-about-form-mgt-9\/\"> MGT-9<\/a> is an extract from the annual return that contains the following information about the company for one fiscal year and is annexed to the Board of Directors&#8217; Report on the Company:<\/p>\n<ul>\n<li>Company fundamentals (CIN, address, primary business activity)<\/li>\n<li>The Company&#8217;s Primary Business Activities<\/li>\n<li>Holding, Subsidiary, and Associate Company Information<\/li>\n<li>Holding Pattern in Shares<\/li>\n<li>Company&#8217;s indebtedness<\/li>\n<li>Directors&#8217; and key management personnel&#8217;s remuneration<\/li>\n<li>Penalties\/punishment\/additional offences<\/li>\n<\/ul>\n<p>The Companies (Amendment) Act, 2017 (&#8220;Amendment Act, 2017&#8221;), which was published in the Official Gazette on 03.01.2018, made significant changes to various provisions of the Companies Act, 2013 (&#8220;CA, 2013&#8221;), including the omission of Form MGT-9 and the placement of the Annual Return in Form MGT-7 on the company&#8217;s website.<\/p>\n<p>Through this article, the most important annual filing question: Is it necessary to prepare Form MGT-9 (Extract of the Annual Return) for the Fiscal Year 2020-21 and subsequent years shall be addressed.<\/p>\n<table style=\"width: 100%;\">\n<tbody>\n<tr>\n<td style=\"border: 1px solid #555;\"><strong>Table of Contents<\/strong><\/p>\n<ul>\n<li><a href=\"#previous\">Previous and current position concerning Annual Return Extract (in Form MGT-9)\/Annual Return (in Form MGT-7)<\/a><\/li>\n<li id=\"previous\"><a href=\"#points\">Key points to consider when preparing the Board&#8217;s Report for the fiscal year 2020-21 and beyond<\/a><\/li>\n<li><a href=\"#conclusion\">Conclusion<\/a><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><strong>Previous and current position concerning Annual Return Extract (in Form MGT-9)\/Annual Return (in Form MGT-7)<\/strong><\/h2>\n<h3><strong>From the 1st of April, 2014 to the 30th of July, 2018<\/strong>:<\/h3>\n<p>Every company must attach to its Board&#8217;s Report an extract of its Annual Return in Form MGT-9.<\/p>\n<h3><strong>From 31\/07\/2018 to 27\/08\/20<\/strong><\/h3>\n<ul>\n<li>Every company must attach to its Board&#8217;s Report an extract of its Annual Return in form MGT-9.<\/li>\n<li>The web address, if any, of the Annual Return extract is to be disclosed in the Board&#8217;s Report.<\/li>\n<\/ul>\n<h3><strong>From 28\/08\/2020 to 4\/03\/2021<\/strong><\/h3>\n<ul>\n<li>Every company must post a copy of its annual report (in Form MGT-7) on its website if it has one.<\/li>\n<li>The web address for such an annual report shall be included in the Board&#8217;s report.<\/li>\n<li>(c) If the web link to such annual return is not disclosed in the Board&#8217;s report\/ If the Company does not have a website, an extract of the annual return in Form MGT-9 must be attached to the Board&#8217;s Report.<\/li>\n<\/ul>\n<h3><strong>From 05\/03\/2021 onwards<\/strong><\/h3>\n<ul>\n<li id=\"points\">Every company shall post a copy of the annual return (in Form MGT-7\/MGT-7A, as applicable) on the company&#8217;s website if any.<\/li>\n<li>The web address for such a small annual report shall be included in the Board&#8217;s Report.<\/li>\n<\/ul>\n<h2><strong>Key points to consider when preparing the Board&#8217;s Report for the fiscal year 2020-21 and beyond<\/strong><\/h2>\n<ul>\n<li><strong>Annual Return Web Link in Board Report<\/strong>\n<ul>\n<li>A copy of the Annual Return must be posted on the company&#8217;s website.<\/li>\n<li>A web link to a copy of the Annual Return (in Form MGT-7\/Form MGT-7A, as applicable) as posted on the website, which will be disclosed in the Board&#8217;s report.<\/li>\n<li>If the company does not have a website, mention this in the Board&#8217;s report; there is no need to annex\/attach the Annual Return to the Board&#8217;s Report.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li><strong>The Extract of Annual Return (MGT-9) is no longer required because it is missing<\/strong><\/li>\n<li><strong>Annual Return means the following for fiscal years 2020-21 onwards:<\/strong>\n<ul>\n<li>MGT-7A: One Person Companies (OPCs) and Small Businesses<\/li>\n<li>MGT-7: for all other businesses.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Non-Application of Section 93 to Specified IFSC Private\/Public Companies<br \/>\n<\/strong>Sec 92(3) does not apply to Specified IFSC private\/public companies as of 04.01.2017, and thus there is no requirement to place a copy of the annual return on the company&#8217;s website or disclose a web link to such annual return in the Board&#8217;s report.<\/li>\n<li><strong>MGT- 7A &amp; Revised MGT-7<br \/>\n<\/strong>The new form MGT-7A and revised form MGT-7 will be available on the MCA portal on July 16, 2021.<\/li>\n<li><strong>Increase in threshold limits for Small Company<br \/>\n<\/strong>Beginning April 1, 2021, the Small Company threshold limits (paid-up capital and turnover) will be increased. For Form MGT-7A or Form MGT-7, the company&#8217;s status as of the end of the fiscal year (March 31st) should be taken into account. However, it is important to note that the MCA\/e-form takes into account the company&#8217;s status as of the date of filing. As a result, proper precautions must be taken.<\/li>\n<li><strong>Difficulties encountered recently with e-Form MGT-7\/7A<br \/>\n<\/strong>An annual return must be prepared based on the particulars as of the end of the fiscal year. However, the system\/e-form considers the date of filling\/filing the form- to determine whether a company is a small business or not. For example, a company that was previously not a small company but has now become a small company due to increased thresholds, and e-form prompting an error to choose e-form MGT-7A even for previous financial year filings, despite Rule 11(1) stating that &#8220;<a href=\"https:\/\/www.cagmc.com\/one-person-company\/\">One Person Company<\/a> and Small Company shall file an annual return in Form No.MGT-7A from the financial year 2020-2021 onwards.&#8221;<br \/>\nEven though holding\/subsidiary companies are not small businesses, the system\/e-form treats them as such based on the paid-up capital and turnover criteria, resulting in an error to select e-form MGT-7A.<br \/>\nBecause the e-Form does not highlight future dates, the AGM date cannot be filled electronically prior to the AGM date, i.e. at the time of preparing the Board&#8217;s Report. As a result, such a date can be manually entered.<\/li>\n<\/ul>\n<h2 id=\"conclusion\"><strong>Conclusion<\/strong><\/h2>\n<p>The term &#8220;Form MGT-9&#8221; no longer exists in the <a href=\"https:\/\/en.wikipedia.org\/wiki\/Companies_Act_2013\" target=\"_blank\" rel=\"noopener\">Companies Act of 2013<\/a> and has been completely removed from the Act. Every company is required to post a copy of its annual return in Form MGT-7\/Form MGT-7A (as applicable) on its website, and the web link to such annual return must be disclosed in the Board&#8217;s Report.<\/p>\n<p>As a result, the Form MGT-9 is no longer required to be prepared beginning with the Fiscal Year 2020-21 and onwards, regardless of whether the Company has a website or not.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to general practises, every company is required to prepare the annual return extract in Form MGT-9 before preparing the [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":34979,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[88],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Whether MGT-9 required to be attached with Directors Report? 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