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Annual Compliances of a Producer Company

Compliance

Annual Regulatory Requirements
for Producer Companies

Agriculture serves as the cornerstone of the Indian economy, playing a pivotal role in sustaining livelihoods and driving economic growth. With over 50% of India's total workforce engaged in this sector, it stands as the largest employer in the country. Moreover, agriculture contributes substantially to the nation's Gross Domestic Product (GDP), accounting for approximately 17-18% of the GDP.

Recognizing the significance of agricultural cooperatives in empowering farmers and enhancing agricultural productivity, the government allows these cooperatives to operate as corporate entities under the Ministry of Corporate Affairs Act. This provision enables farmer cooperatives to leverage corporate structures and mechanisms to streamline operations, access resources, and optimize efficiencies, thereby fostering the development and prosperity of the agricultural sector.

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Basic Compliances of a Producer Company

Sl. No. Section & Rules Particular of Compliance
1. Receipt of MBP-1 184(1) FormMBP- 1 Every Director of the Company in the First Meeting of the Board of Directors in each Financial Year shall disclose his interest in other entities. Every Director is required to submit with the Company a fresh MBP-1, whenever there is a change in his interest from the earlier given MBP-1.
2. Receipt of DIR- 8 164(2)143(3)(g) Form DIR – 8 Every Director of the Company in each Financial Year will file with the Company disclosure of non-disqualification.
3. E- Forms Filing RequirementsAnnual Form 581ZA E-form:MGT-7 Annual Return: Every Company will file its Annual Return within 60 days of holding of Annual General Meeting. Annual Return will be for the period 1st April to 31st March.
4. Attachment: Balance Sheet, Statement of Profit& Loss Account, Cash Flow Statement, Directors’ The report, Auditors’ Report, and Notice of AGM. 581ZA E-form: AOC-4 Financial Statement: Company is required to file its Balance Sheet along with the Statement of Profit and Loss Account, Cash flow statement, Directors’ Report, and Auditors’ Report in this form within 30 days of holding of Annual General Meeting.
5. Annual Form Section 73Rule 16 E-formDPT-3 Return of Deposit: Company is required to file this form every year on or before 30th June in respect of return of Deposit and Particulars not considered as Deposit as on 31st March.
6. Event-Based Form Section 90 BEN-2 Disclosure of Significant Beneficial Owner: Company shall file BEN-2 within 30 days of receipt of BEN-1 from Shareholder. Note: On a regular basis company has to check whether there is any SBO in the company due to a change in its shareholding or due to a change in the shareholding of body corporate members.
7. Annual Form Rule 12A DIR-3 KYC KYC of Directors: All the Directors of the company shall file this form on or before 30th September every year for all the directors of the Company.
8. Half Yearly Return Section 405 MSME-1 Delay in Payment to MSME Vendor: Company has to file this return half-yearly in respect of pending payments to MSME vendors as at end of the half-year. April to Sep – 30th October | October to March – 30th April
9. Directors’ Report 581ZA The company will send to the members of the Company approved Financial Statement, Directors’ Report, and Auditors’ Report at least 14 clear days before the Annual General Meeting.
10. Circulation of Financial Statement &other relevant Dox 581ZA The company will send to the members of the Company approved Financial Statement, Directors’ Report, and Auditors’ Report at least 14 clear days before the Annual General Meeting.
11. Notice of AGM 581ZA The Producer Company shall in each year hold an Annual General Meeting and not more than 15 months shall elapse between the date of one Annual General Meeting to the next. A general meeting of the Producer Company shall be called by giving not less than fourteen days prior notice in writing
12. Sending of Notice of AGM 581ZA The notice calling the annual general meeting shall be accompanied by the following documents, namely: –(a) the agenda of the annual general meeting ; (b) the minutes of the previous annual general meeting or the extraordinary general meeting ;(c) the names of candidates for election, if any, to the office of director including a statement of qualifications in respect of each candidate;(d) the audited balance-sheet and profit and loss accounts of the Producer Company and its subsidiary, if any, etc
13. Board Meetings 581V The board shall meet at least once every three months and at least four such meetings shall be convened every year. Quorum:- 1/3rd of the total strength of Directors subject to a minimum – 3
14. Appointment of Auditor 581 E-formADT-1 The auditor will be appointed for 5 (Five) years and form ADT-1 will be filed for a 5-year appointment within 15 days of the Annual General Meeting.