Use this skill when preparing, reviewing, or advising on annual financial statements for an Indian company. Trigger on phrases like "financial statements India", "MCA filing", "AOC-4", "Schedule III", "Ind AS", "Indian Accounting Standards", "Companies Act 2013", "CARO", "statutory audit India", "ROC filing", "small company India", "OPC", "balance sheet format India", or any question about preparing and filing statutory accounts under the Companies Act 2013. Covers Ind AS/AS frameworks, Schedule III formats, size thresholds, required statements, notes, MCA filing, and audit requirements.
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Determine the applicable reporting framework (Ind AS vs AS)
Establish whether the company is listed and compute its net worth. Apply the listing and net-worth tests to decide Ind AS or AS (Indian GAAP). Small companies and OPCs use simplified AS.
Watch for: Listed companies, and unlisted companies at or above the Ind AS net-worth threshold, report under Ind AS. Unlisted companies below it use AS unless they voluntarily adopt Ind AS.
Companies Act 2013 s 129; Companies (Ind AS) Rules, 2015
Close the books from the trial balance and post year-end adjustments
Extract the trial balance, then post year-end adjustments: depreciation, provisions, employee benefits and gratuity, deferred tax, foreign exchange, leases, revenue cut-off, expected credit losses and any CSR provision.
Watch for: Post each adjustment under the applicable framework (Ind AS or AS). Depreciation follows the useful lives prescribed in Schedule II, with component accounting under Ind AS.
Companies Act 2013 Schedule II
Every figure is drawn from this Tax Guide and cited to its source.
Listed companies
Ind AS mandatoryMCA notification
Unlisted — net worth ≥ ₹250 crore
Ind AS mandatoryMCA notification
Unlisted — below ₹250 crore
AS (Indian GAAP) unless voluntaryMCA notification
Form
AOC-4 / AOC-4 XBRL / AOC-4 CFSCompanies Act s 137
AGM deadline
6 months from FY-endCompanies Act s 96
Listed companies — Ind AS Applicability
Ind AS mandatoryMCA notification
Unlisted — net worth ≥ ₹250 crore — Ind AS Applicability
Ind AS mandatoryMCA notification
Unlisted — below ₹250 crore — Ind AS Applicability
AS (Indian GAAP) unless voluntaryMCA notification
Form (Filing)
AOC-4 / AOC-4 XBRL / AOC-4 CFS
Reviewed against the cited tax authorities by Mayur Deokar on 2026-06-06. Items flagged for further clarification are tracked separately and excluded here. This block is generated from verified skill_facts — edit the facts, not the prose.
Quick Reference
| Field | Value |
|---|---|
| Country | India (Republic of India) |
| Currency | INR |
| Filing authority | Ministry of Corporate Affairs (MCA) — Registrar of Companies (ROC) |
| Primary legislation | Companies Act, 2013 (Sections 128–138) |
| Supporting legislation | Companies (Accounts) Rules, 2014; Companies (Audit and Auditors) Rules, 2014 |
| Accounting standards | Ind AS (Indian Accounting Standards — IFRS-converged) or AS (Accounting Standards) |
| Financial year | 1 April – 31 March (mandatory for most companies) |
| Filing deadline | 30 days from AGM (e-Form AOC-4); AGM within 6 months of year-end |
| Late filing penalty | Additional fee of INR 100 per day of delay |
| Digital filing | MCA21 portal (e-Form AOC-4 / AOC-4 XBRL / AOC-4 CFS) |
Reporting Framework
| Entity type | Applicable standard |
|---|---|
| Listed companies | Ind AS (mandatory) |
| Unlisted companies — net worth ≥ INR 250 crore | Ind AS (mandatory) |
| Unlisted companies — net worth < INR 250 crore | AS (Indian GAAP) unless voluntarily adopting Ind AS |
| Banking companies | Ind AS (mandatory from 2019) |
| Insurance companies | Ind AS (mandatory from 2023) |
| NBFCs — net worth ≥ INR 250 crore | Ind AS (mandatory) |
| Small companies (Section 2(85)) | AS (simplified requirements) |
| One Person Companies (OPC) | AS (simplified) |
Ind AS applicability (phased rollout)
| Phase | Companies covered | Effective from |
|---|---|---|
| Phase I | Listed + net worth ≥ INR 500 crore | 1 April 2016 |
| Phase II | Unlisted net worth ≥ INR 250 crore + listed on SME exchange | 1 April 2017 |
| Others | Voluntary adoption permitted; mandatory if thresholds met | Ongoing |
Small Company thresholds
| Criterion | Threshold |
|---|---|
| Paid-up share capital | ≤ INR 10 crore (INR 100,000,000) |
| Turnover (per last P&L) | ≤ INR 100 crore (INR 1,000,000,000) |
OPC thresholds
| Criterion | Threshold |
|---|---|
| Paid-up share capital | ≤ INR 50 lakh |
| Turnover | ≤ INR 2 crore |
Required Financial Statements
| Document | All companies | Small company exemptions |
|---|---|---|
| Balance Sheet | Required (Schedule III format) | Required |
| Statement of Profit and Loss | Required (Schedule III format) | Required |
| Statement of Changes in Equity | Required (Ind AS companies) | Not required (AS companies) |
| Cash Flow Statement | Required | Exempt (small companies and OPCs) |
| Notes to Financial Statements | Required | Required (simplified) |
| Directors' Report (Section 134) | Required | Abridged version permitted |
| Auditor's Report | Required (all companies must be audited) | Required (but CARO exempt) |
| Consolidated Financial Statements | Required if subsidiary/associate/JV exists (Section 129(3)) | Required if applicable |
Year-End Adjustments Checklist
| # | Adjustment | India-specific notes |
|---|---|---|
| 1 | Depreciation | Schedule II to Companies Act prescribes useful lives; component accounting under Ind AS |
| 2 | Provisions | Ind AS 37 / AS 29; present obligation, probable, reliably estimable |
| 3 | Employee benefits | Ind AS 19 / AS 15; gratuity (actuarial valuation mandatory); leave encashment |
| 4 | Expected credit losses | Ind AS 109 (ECL model); AS 4 (incurred loss) for non-Ind AS |
| 5 | Inventory | Ind AS 2 / AS 2; lower of cost and NRV; FIFO or weighted average |
| 6 | Deferred tax | Ind AS 12 / AS 22; temporary differences; effective rate ~25.17% (new regime) or 30%+ |
| 7 | Foreign exchange | Ind AS 21 / AS 11; monetary items at closing rate |
| 8 | Lease accounting | Ind AS 116 (right-of-use); AS 19 (finance/operating) for non-Ind AS |
| 9 | Revenue recognition | Ind AS 115 (5-step model); AS 9 for non-Ind AS |
| 10 | Government grants | Ind AS 20 / AS 12 |
| 11 | Gratuity provision | Payment of Gratuity Act 1972; actuarial valuation by qualified actuary |
| 12 | CSR provision | Section 135; if criteria met, provide for unspent CSR amount |
I. Revenue from operations (a) Sale of products (b) Sale of services (c) Other operating revenue
II. Other income
III. Total income (I + II)
IV. Expenses: (a) Cost of materials consumed (b) Purchases of stock-in-trade (c) Changes in inventories of FG, WIP and stock-in-trade (d) Employee benefits expense (e) Finance costs (f) Depreciation and amortisation expense (g) Other expenses
V. Total expenses
VI. Profit before exceptional items and tax (III - V)
VII. Exceptional items
VIII. Profit before tax (VI + VII)
IX. Tax expense: (a) Current tax (b) Deferred tax
X. Profit for the period (VIII - IX)
XI. Other comprehensive income (Ind AS only) (a) Items not reclassified to profit or loss (b) Items that will be reclassified to profit or loss
XII. Total comprehensive income (X + XI)
EQUITY AND LIABILITIES
Shareholders' Funds (a) Share capital (b) Reserves and surplus (c) Money received against share warrants
Share Application Money Pending Allotment
Non-Current Liabilities (a) Long-term borrowings (b) Deferred tax liabilities (net) (c) Other long-term liabilities (d) Long-term provisions
Current Liabilities (a) Short-term borrowings (b) Trade payables - Total outstanding dues of MSMEs - Total outstanding dues of others (c) Other current liabilities (d) Short-term provisions
TOTAL
─────────────────────────────────────
ASSETS
Non-Current Assets (a) Property, plant and equipment - Tangible assets - Intangible assets - Capital work-in-progress - Intangible assets under development (b) Non-current investments (c) Deferred tax assets (net) (d) Long-term loans and advances (e) Other non-current assets
Current Assets (a) Current investments (b) Inventories (c) Trade receivables (d) Cash and cash equivalents (e) Short-term loans and advances (f) Other current assets
TOTAL
Note: Ind AS companies use Division II format which presents equity separately and has a different ordering.
Notes to Financial Statements
| # | Disclosure | AS (non-Ind AS) | Ind AS |
|---|---|---|---|
| 1 | Significant accounting policies | Required (AS 1) | Required (Ind AS 1/8) |
| 2 | Property, plant and equipment | Required (Schedule III) | Required (Ind AS 16) |
| 3 | Share capital details | Required | Required |
| 4 | Borrowings (terms, security) | Required | Required |
| 5 | Trade payables (MSME ageing) | Required (MSMED Act) | Required |
| 6 | Related party transactions | Required (AS 18) | Required (Ind AS 24 — extensive) |
| 7 | Contingent liabilities and commitments | Required (AS 29) | Required (Ind AS 37) |
| 8 | Employee benefits / gratuity | Required (AS 15) | Required (Ind AS 19 — full actuarial) |
| 9 | Deferred tax | Required (AS 22) | Required (Ind AS 12) |
| 10 | Revenue recognition | Simplified (AS 9) | Required (Ind AS 115 — disaggregation) |
| 11 | Financial instruments | Not applicable | Required (Ind AS 107 — extensive) |
| 12 | Earnings per share | Required (AS 20) — listed only | Required (Ind AS 33) |
| 13 | Segment reporting | Required (AS 17) — listed | Required (Ind AS 108) — listed |
| 14 | CSR expenditure | Required (if Section 135 applies) | Required |
Filing Requirements
| Item | Detail |
|---|---|
| Filing authority | MCA (Ministry of Corporate Affairs) via MCA21 portal |
| Filing form | e-Form AOC-4 (standalone); AOC-4 CFS (consolidated); AOC-4 XBRL (if applicable) |
| AGM deadline | Within 6 months from financial year-end (i.e., by 30 September for March year-end) |
| Filing deadline (AOC-4) | Within 30 days from date of AGM |
| Latest possible date | Approximately 31 October (for March year-end companies) |
| XBRL filing mandatory for | Companies with capital ≥ INR 5 crore OR turnover ≥ INR 150 crore; all listed companies |
| Filing fee | INR 200–600 depending on authorised capital |
| Additional fee (late filing) | INR 100 per day of delay (no maximum cap) |
| Digital signature | DSC of director + practicing professional (CA/CS/CMA) |
| Format | Figures in absolute rupees (not in lakhs/crores) |
Statutory audit table
| Category | Audit requirement | CARO 2020 applicable? |
|---|---|---|
| Listed companies | Mandatory; audit + CARO | Yes |
| Public companies (non-listed) | Mandatory; audit + CARO | Yes (unless exempt) |
| Private companies (non-small) | Mandatory; audit + CARO | Yes (unless exempt) |
| Small companies | Mandatory; audit only | No — CARO exempt |
| OPC | Mandatory; audit only | No — CARO exempt |
| Section 8 companies (NPO) | Mandatory; audit only | No — CARO exempt |
Auditor rotation table (Section 139(2))
| Company type | Individual auditor | Audit firm |
|---|---|---|
| Listed / prescribed class | 1 term of 5 consecutive years | 2 terms of 5 years (total 10 years) |
| Small companies | Exempt from rotation | Exempt from rotation |
| OPC | Exempt from rotation | Exempt from rotation |
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Review status
Accountant-reviewed
Reviewed by a named licensed practitioner against the stated sources, as general reference material.
Accountant-reviewed
Reviewed by Mayur Deokar · 6 June 2026
A named accountant reviewed this complete Guide version within the stated scope. It is not a guarantee.
View review record →Other India computations in the OpenAccountants Tax Library.
Prepare the primary statements in Schedule III format
Draw up the Balance Sheet and the Statement of Profit and Loss in the prescribed Schedule III layout.
Watch for: Present the Balance Sheet (Part I) and the Statement of Profit and Loss (Part II) in Schedule III format. Ind AS filers use Division II; non-Ind AS filers use Division I.
Companies Act 2013 Schedule III, Parts I and II
Add notes, Statement of Changes in Equity, and Cash Flow Statement
Prepare the notes to the accounts and the cash flow statement, and (for Ind AS filers) the Statement of Changes in Equity. Apply the small-company and OPC cash-flow exemption where the size tests are met.
Watch for: Notes follow the applicable standards. Ind AS filers add a Statement of Changes in Equity. The Cash Flow Statement is required for all companies except small companies and OPCs.
Companies Act 2013 s 129
Obtain the statutory audit and CARO report where applicable
Have the financial statements audited by a Chartered Accountant holding a Certificate of Practice, and obtain the CARO 2020 report where the company is not exempt. Confirm whether internal audit is triggered.
Watch for: Every company must be audited; there is no size-based audit exemption in India. CARO 2020 applies unless the company is a small company or a qualifying exempt private company. Internal audit applies only above the prescribed thresholds.
Companies Act 2013 s 143 (audit s 139 to 147); CARO 2020
Board approval and directors' report
Have the Board approve and sign the financial statements and adopt the directors' report before they are laid before the AGM.
Watch for: The Board approves and signs the financial statements and the directors' report prior to the AGM. Small companies may use an abridged directors' report.
Companies Act 2013 s 134
File AOC-4 with the ROC on MCA21 and watch the deadlines
Hold the AGM, then file the financial statements in e-Form AOC-4 (AOC-4 XBRL or AOC-4 CFS where applicable) with the Registrar of Companies on the MCA21 portal, in absolute rupees. File the annual return in MGT-7 separately with the ROC. Track the late fee.
Watch for: Hold the AGM within the statutory window, then file AOC-4 within the post-AGM window. Use AOC-4 XBRL where the capital/turnover trigger or Ind AS applies. A per-day additional fee accrues with no cap.
Companies Act 2013 s 96; s 137; s 403
Deliver the working paper and offer review
Assemble the complete set (Balance Sheet, Statement of Profit and Loss, notes, cash flow, Statement of Changes in Equity, directors' report and audit report) as a working paper. Make clear it is a draft, not filed accounts, and offer Mayur Deokar a review before filing.
Watch for: This is a working paper for professional review, not a substitute for the statutory audit and ROC filing.
What Mayur checks before signing off
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Add to your AIAGM deadline (repeat)
6 months from FY-endCompanies Act s 96
AOC-4 deadline
30 days from AGMCompanies Act s 137
XBRL mandatory if
Capital ≥ ₹5 crore OR turnover ≥ ₹100 crore; all listed; all companies implementing IND ASMCA Rules
Late fee
₹100/day of delayCompanies Act s 403
Statutory audit
ALL companies — mandatory (no size exemption)Companies Act s 139
CARO 2020 — small company
ExemptCARO 2020
Auditor rotation — individual
1 term of 5 years (listed)Companies Act s 139(2)
Auditor rotation — firm
2 terms of 5 years = 10 years (listed)Companies Act s 139(2)
Internal audit
Mandatory for every listed company. For unlisted public company: turnover ≥ ₹200 crore or loans > ₹100 crore or paid-up share capital ≥ ₹50 crore or deposits ≥ ₹25 crore. For unlisted private company: required if turnover ≥ ₹200 crore or loans ≥ ₹100 crore.Companies Act s 138
Quick Reference
| Field | Value | |---|---| | Country | India (Republic of India) | | Currency | INR | | Filing authority | Ministry of Corporate Affairs (MCA) — Registrar of Companies (ROC) | | Primary legislation | Companies Act, 2013 (Sections 128–138) | | Supporting legislation | Companies (Accounts) Rules, 2014; Companies (Audit and Auditors) Rules, 2014 | | Accounting standards | Ind AS (Indian Accounting Standards — IFRS-converged) or AS (Accounting Standards) | | Financial year | 1 April – 31 March (mandatory for most companies) | | Filing deadline | 30 days from AGM (e-Form AOC-4); AGM within 6 months of year-end | | Late filing penalty | Additional fee of INR 100 per day of delay | | Digital filing | MCA21 portal (e-Form AOC-4 / AOC-4 XBRL / AOC-4 CFS) |
Reporting Framework
| Entity type | Applicable standard | |---|---| | Listed companies | Ind AS (mandatory) | | Unlisted companies — net worth ≥ INR 250 crore | Ind AS (mandatory) | | Unlisted companies — net worth < INR 250 crore | AS (Indian GAAP) unless voluntarily adopting Ind AS | | Banking companies | Ind AS (mandatory from 2019) | | Insurance companies | Ind AS (mandatory from 2023) | | NBFCs — net worth ≥ INR 250 crore | Ind AS (mandatory) | | Small companies (Section 2(85)) | AS (simplified requirements) | | One Person Companies (OPC) | AS (simplified) |
Ind AS applicability (phased rollout)
| Phase | Companies covered | Effective from | |---|---|---| | Phase I | Listed + net worth ≥ INR 500 crore | 1 April 2016 | | Phase II | Unlisted net worth ≥ INR 250 crore + listed on SME exchange | 1 April 2017 | | Others | Voluntary adoption permitted; mandatory if thresholds met | Ongoing |
Small Company thresholds
| Criterion | Threshold | |---|---| | Paid-up share capital | ≤ INR 10 crore (INR 100,000,000) | | Turnover (per last P&L) | ≤ INR 100 crore (INR 1,000,000,000) |
Small Company qualification conditions
Both conditions must be met. Excludes: public companies, Section 8 companies, and companies governed by special Acts.Section 2(85)
OPC thresholds
| Criterion | Threshold | |---|---| | Paid-up share capital | ≤ INR 50 lakh | | Turnover | ≤ INR 2 crore |
legal basis
Under Section 2(40) and Section 129 of Companies Act 2013Section 2(40), Section 129
Required Financial Statements
| Document | All companies | Small company exemptions | |---|---|---| | Balance Sheet | Required (Schedule III format) | Required | | Statement of Profit and Loss | Required (Schedule III format) | Required | | Statement of Changes in Equity | Required (Ind AS companies) | Not required (AS companies) | | Cash Flow Statement | Required | Exempt (small companies and OPCs) | | Notes to Financial Statements | Required | Required (simplified) | | Directors' Report (Section 134) | Required | Abridged version permitted | | Auditor's Report | Required (all companies must be audited) | Required (but CARO exempt) | | Consolidated Financial Statements | Required if subsidiary/associate/JV exists (Section 129(3)) | Required if applicable |
Year-End Adjustments Checklist
| # | Adjustment | India-specific notes | |---|---|---| | 1 | Depreciation | Schedule II to Companies Act prescribes useful lives; component accounting under Ind AS | | 2 | Provisions | Ind AS 37 / AS 29; present obligation, probable, reliably estimable | | 3 | Employee benefits | Ind AS 19 / AS 15; gratuity (actuarial valuation mandatory); leave encashment | | 4 | Expected credit losses | Ind AS 109 (ECL model); AS 4 (incurred loss) for non-Ind AS | | 5 | Inventory | Ind AS 2 / AS 2; lower of cost and NRV; FIFO or weighted average | | 6 | Deferred tax | Ind AS 12 / AS 22; temporary differences; effective rate ~25.17% (new regime) or 30%+ | | 7 | Foreign exchange | Ind AS 21 / AS 11; monetary items at closing rate | | 8 | Lease accounting | Ind AS 116 (right-of-use); AS 19 (finance/operating) for non-Ind AS | | 9 | Revenue recognition | Ind AS 115 (5-step model); AS 9 for non-Ind AS | | 10 | Government grants | Ind AS 20 / AS 12 | | 11 | Gratuity provision | Payment of Gratuity Act 1972; actuarial valuation by qualified actuary | | 12 | CSR provision | Section 135; if criteria met, provide for unspent CSR amount |
P&L format basis
Schedule III, Part II (by nature/function — Division I for non-Ind AS; Division II for Ind AS):Schedule III, Part II
Balance sheet format basis
Schedule III, Part I:Schedule III, Part I
Notes to Financial Statements
| # | Disclosure | AS (non-Ind AS) | Ind AS | |---|---|---|---| | 1 | Significant accounting policies | Required (AS 1) | Required (Ind AS 1/8) | | 2 | Property, plant and equipment | Required (Schedule III) | Required (Ind AS 16) | | 3 | Share capital details | Required | Required | | 4 | Borrowings (terms, security) | Required | Required | | 5 | Trade payables (MSME ageing) | Required (MSMED Act) | Required | | 6 | Related party transactions | Required (AS 18) | Required (Ind AS 24 — extensive) | | 7 | Contingent liabilities and commitments | Required (AS 29) | Required (Ind AS 37) | | 8 | Employee benefits / gratuity | Required (AS 15) | Required (Ind AS 19 — full actuarial) | | 9 | Deferred tax | Required (AS 22) | Required (Ind AS 12) | | 10 | Revenue recognition | Simplified (AS 9) | Required (Ind AS 115 — disaggregation) | | 11 | Financial instruments | Not applicable | Required (Ind AS 107 — extensive) | | 12 | Earnings per share | Required (AS 20) — listed only | Required (Ind AS 33) | | 13 | Segment reporting | Required (AS 17) — listed | Required (Ind AS 108) — listed | | 14 | CSR expenditure | Required (if Section 135 applies) | Required |
Filing Requirements
| Item | Detail | |---|---| | Filing authority | MCA (Ministry of Corporate Affairs) via MCA21 portal | | Filing form | e-Form AOC-4 (standalone); AOC-4 CFS (consolidated); AOC-4 XBRL (if applicable) | | AGM deadline | Within 6 months from financial year-end (i.e., by 30 September for March year-end) | | Filing deadline (AOC-4) | Within 30 days from date of AGM | | Latest possible date | Approximately 31 October (for March year-end companies) | | XBRL filing mandatory for | Companies with capital ≥ INR 5 crore OR turnover ≥ INR 150 crore; all listed companies | | Filing fee | INR 200–600 depending on authorised capital | | Additional fee (late filing) | INR 100 per day of delay (no maximum cap) | | Digital signature | DSC of director + practicing professional (CA/CS/CMA) | | Format | Figures in absolute rupees (not in lakhs/crores) |
Statutory audit requirement
ALL companies incorporated under the Companies Act 2013 must have their financial statements audited by a Chartered Accountant. There is no audit exemption by size in India.Section 139–147
Statutory audit table
| Category | Audit requirement | CARO 2020 applicable? | |---|---|---| | Listed companies | Mandatory; audit + CARO | Yes | | Public companies (non-listed) | Mandatory; audit + CARO | Yes (unless exempt) | | Private companies (non-small) | Mandatory; audit + CARO | Yes (unless exempt) | | Small companies | Mandatory; audit only | No — CARO exempt | | OPC | Mandatory; audit only | No — CARO exempt | | Section 8 companies (NPO) | Mandatory; audit only | No — CARO exempt |
CARO 2020 exemption conditions
A private company is also exempt from CARO 2020 (in addition to small companies) if it simultaneously meets ALL of: Paid-up capital + reserves ≤ INR 1 crore; Total borrowings ≤ INR 1 crore (from banks/financial institutions); Total revenue ≤ INR 10 croreCARO 2020
Auditor rotation table
| Company type | Individual auditor | Audit firm | |---|---|---| | Listed / prescribed class | 1 term of 5 consecutive years | 2 terms of 5 years (total 10 years) | | Small companies | Exempt from rotation | Exempt from rotation | | OPC | Exempt from rotation | Exempt from rotation |Section 139(2)
Internal audit requirement conditions
Required if: Listed company; Unlisted public company with: turnover ≥ INR 200 crore OR paid-up capital ≥ INR 50 crore OR loans/borrowings ≥ INR 100 crore OR deposits ≥ INR 25 crore; Private company with: turnover ≥ INR 200 crore OR loans/borrowings ≥ INR 100 croreSection 138
Auditor qualification requirement
Chartered Accountant (CA) holding Certificate of Practice, or firm of Chartered Accountants, registered with the Institute of Chartered Accountants of India (ICAI). For companies requiring CARO reporting, the auditor must also comply with Standards on Auditing (SA) issued by ICAI.ICAI / CARO
Rendered from the canonical facts model · method attested Jun 6, 2026 (covers the method, not the currency of individual figures). General reference only — confirm with a qualified professional before acting.
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