Seeking Professional Guidance on Signing of Financial Statements and UDIN Compliance under CCFS Scheme
Satya Dutt Shukla
Dear Sir/Madam
I seek your professional guidance on a matter concerning one of my Private Limited Company clients who intends to avail closure under the Company Compliance Filing Scheme (CCFS), 2026, introduced by the Ministry of Corporate Affairs and effective from 15th April 2026.
The company has multiple pending statutory filings, which we plan to regularize under the said scheme by filing overdue returns with reduced penalties. However, I am facing a practical and compliance-related dilemma regarding the signing of the financial statements.
If the Balance Sheet is signed on the current date, it may attract significant penalties on the directors for non-compliance with provisions relating to the timely holding of the Annual General Meeting (AGM), as the financial statements were not ready to present in AGM, as prescribed under the Companies Act, 2013.
On the other hand, if the Balance Sheet is backdated to reflect signing within the permissible timeline (i.e., before the due date of the AGM for the relevant financial year), it creates an issue with UDIN generation. As per ICAI requirements, UDIN must be generated contemporaneously, and generating UDIN on a later date for documents backdated may amount to professional misconduct.
Thus, I am caught between:
- Potential statutory non-compliance exposure for the client and its directors, and
- Risk of professional misconduct due to UDIN non-compliance.
In view of the above, I request your considered opinion on the appropriate course of action that ensures compliance with both the Companies Act provisions and ICAI guidelines, while safeguarding professional ethics.
Your guidance will be highly valuable in resolving this matter appropriately.
Thanking you in anticipation.
Yours faithfully
Prashanth Kamath
The MCA introduced this specific scheme to allow companies to regularize long-pending compliance gaps with significantly reduced penalties. Signing with the current date allows us to cleanly upload these forms through the scheme’s portal wrapper and claim this official immunity.
Backdating FS leaves a digital trail that conflicts with auditing protocols (such as mandatory UDIN ) Signing on the current date ensures filings are 100% authentic, protecting the company from severe future scrutiny etc
A delayed Annual General Meeting (AGM) is a historical fact that backdated papers cannot erase. The correct legal procedure is to lay the currently signed financials before the shareholders now.
Once the financials are successfully uploaded under the CCFS scheme, the directors can file a voluntary compounding application under Section 441 . Because the company will already be fully updated with its filings, authorities typically take a highly lenient view and settle past delays with a minimal, one-time fee.
This is my take on this matter.
Regards
Kamath
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Ashish Gupta
AKG & CO
COMPANY SECRETARIES
FCS Ashish Gupta
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Rahul Khanna
Kindly verify whether the Company had carried on any business operations or generated any revenue during the financial years for which the annual filings are pending.
If the Company has not undertaken any business activities and has not generated any revenue during those financial years, then it may be possible to proceed with the strike-off application without regularizing the pending annual filings, subject to compliance with the applicable provisions of the Companies Act, 2013 and the requirements of the Registrar of Companies.
If the Company has generated any revenue during those financial years then you are supposed to regularize such pending annual filings and on professional front my suggestion to you is that take UDIN on present date and conduct such AGM on current date along with the Management Representation Letter from Client and ask your client for Compounding for such offence of Non Convening of AGM timely.
Thanks & Regards,
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