All the companies are required to provide the details regarding their financial statements and annual return to the Registrar of Companies annually. The purpose behind the filing is to make aware shareholders of the company and other stakeholders about the idea of use of funds by the company and operating status and functioning of the company. It is rather a tool that helps in ensuring proper compliance of the provisions of the act and resultantly protects the interest of all the stakeholders at large.
Companies need to make annual filing within the stipulated time frame otherwise it need to impose penalty on the companies and its officers.