Compliance refers to certain forms that are needed to be filed by the companies. These forms are mandatory in accordance with the Companies Act.
If you are a producer company, then you need to file your compliances rightly and on an annual basis in order to make sure that your company has a good legal standing.
Failure to adhere to the compliances can cause the government to hit you with varying degrees of penalties that extend from paying the punishment fees to company closure as well.
This might have given you an idea that the compliances are not optional, you need to follow through with them.