Failure to file copy of Financial Statements: MCA imposes Penalty on Private Limited Company & Directors
Section 137( 3 ) of the Companies Act deals with the imposition of a penalty when a company fails to file its financial statements
Financial Statements – MCA – MCA imposes Penalty – Penalty – Penalty on Private Limited Company & Directors – Private Limited Company & Directors – file copy of Financial Statements – taxscan
Financial Statements – MCA – MCA imposes Penalty – Penalty – Penalty on Private Limited Company & Directors – Private Limited Company & Directors – file copy of Financial Statements – taxscan
In the recent order of adjudication passed by the Ministry of Corporate Affairs ( MCA ) Registrar of Companies, a penalty was imposed on a private limited company and its directors for not filing financial statements.
This private company has been registered under the Companies Act, 2013, and the authorized capital of the company is Rs. 10 lakhs. It is to be noted that this is a non-governmental company and comes under the category of limited by shares.
In this case, complaints from the Reserve Bank of India ( RBI ) were received that this company has not filed its financial statements since incorporation, which it was actually supposed to file by virtue of Section 137( 1 ) of the Companies Act. The adjudicating authority reached the conclusion that the company was liable for penal action as per Section 137(3) of the Companies Act, 2013. Section 137( 3 ) of the Companies Act deals with the imposition of a penalty when a company fails to file its financial statements.
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Due to the company and its officials' failure to reply to show cause notices via email, an e-hearing was planned for December 17, 2024, at 12:00 PM to provide an opportunity for a hearing. Thus, the penalty was imposed on both the company and its directors, and the penalty imposed has been clearly given in the order in the table.
The order also stated that the notice must pay the penalty individually via e-payment on the MCA website under "Pay Miscellaneous Fees" within 90 days and that an appeal may be filed with the Regional Director (Northern Region), Ministry of Corporate Affairs, within 60 days using Form ADJ, along with a certified copy of this order.
It was further mentioned that noncompliance may result in additional action under Section 454(8) of the Companies Act, 2013.
This order was issued by Sitaram, Registrar of Companies & Adjudicating Officer, Chhattisgarh.
To Read the full text of the Order CLICK HERE
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