MCA to impose penalties on Indian unicorns for delay in filling financials

The Ministry of Corporate Affairs (MCA) is considering imposing penalties on Indian unicorns who fail to file their financials on time.

MCA believes that the aforementioned move will improve compliance among homegrown unicorns. According to current regulations and rules, a company (unicorn) must file its annual financial report with the Registrar of Corporate Affairs (RoC) within seven months of the end of the fiscal year. If a company does not follow this, the MCA will fine it INR 200 per day. In addition, if the filing of financial statements is delayed by 270 days, the company’s directors will be imprisoned for more than six months.