The returns obtained on the investment accumulated over a year and calculated as a percentage of the initial amount that was invested is called the Annual Return. When the return is positive, it is a gain on the initial investment. Alternatively, if it is negative, it would be considered a loss on the investment. The risk involved in the investment determines the Rate of Return.The Annual Return is a document that comprises various components like the company’s share capital, debts, directors, shareholders, etc. The Companies Act, 2013, stipulates that the companies prepare and file the Annual Returns with the Registrar of Companies (RoC) on a yearly basis. Failing to file the Annual Returns would attract high penalties.The annual return must be verified and signed by the Director and Company Secretary of the Company by affixing their Digital Signatures. If a Company Secretary is not hired by the company, the signature can be obtained from a practicing Company Secretary. The Annual Returns of One Person Companies (OPC) or small companies can be undersigned by the Director only. The Annual Return is mandated to be filed by every company through Form. No MGT-7, comprising the various details of the company.