MCA imposes Penalties on Company and Directors for Non-Filing of Financial Statements from FY 2016-17 to FY 2020-21 [Read Notification]

In the adjudication passed by the Ministry of Corporate Affairs (MCA) Registrar of Companies under Section 454 of the Companies Act, 2013, a penalty was imposed on the company and its 3 directors for the non-filing of financial statements for the financial years (FY) 2016-17 to FY 2021 under Section 137 of the Companies Act, 2013.

The company named Shubhmangal India Nidhi Limited was registered under the Companies Act, 2013, on 1-5-2016, and its authorised capital is Rs. 15 lakhs.

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During the inquiry, it was found that the company didn’t file its financial statements (AOC-4) for the years ending March 2017, 2018, 2019, 2020 and 2021. The adjudicating authorities observed that the company and its directors didn’t comply with Section 137 of the Companies Act, 2013, and were liable to face penal action under Section 137(3) of the Act.

Section 137(1) of the Companies Act, 2013, states that: "A copy of the financial statements, including consolidated financial statements, if any, along with all the documents which are required to be or attached to such financial statements under this Act, duly adopted at the annual general meeting of the company, shall be filed with the Registrar within thirty days of the date of the annual general meeting in such manner, with such fees or additional fees as may be prescribed."

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Although a show cause notice (SCN) was issued to the company and its officers on 25-4-2024, no reply was furnished, and as the company and its officers neglected to respond to the SCN, therefore, no hearing was scheduled.

The authorities were of the opinion that even after being given the opportunity, neither the company nor any of its directors responded or appeared before the authorities, which proves their non-compliance with Section 137 of the Companies Act, 2013.

The adjudicating authority reached the conclusion that the company violated the provisions of Section 137 of the Act, and a penalty was imposed. They were instructed to make an e-payment within 90 days of the receipt of the order. The penalty imposed was clearly given in the table of the order.

This order was issued by Seema Rath, Registrar of Companies & Adjudicating Officer, Uttar Pradesh, Kanpur.

To Read the full text of the Order CLICK HERE

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