Non-Filing of Balance Sheet for 3 Consecutive Years: MCA imposes Penalty on Company and Directors [Read Order]

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 4 directors for the non-filing of the balance sheet for 3 consecutive years.

The company named Oriental India Kisanshakti Nidhi Limited was registered under the Companies Act, 2013, on 1-5-2016, and its authorized capital is Rs. 10 lakhs. In this case, an inquiry under Section 206 of the Companies Act, 2013, was initiated against the company.

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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 2018, 2019, and 2020. 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."

Although a show cause notice (SCN) was issued to the company and its officers on 11-6-2024, no reply was furnished, and as the company and its officers neglected to respond to the SCN, therefore, no hearing was scheduled.

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Even after being given the opportunity, neither the company nor any of its directors have responded or appeared before the authorities, which proves their non-compliance with Section 137 of the Companies Act, 2013. It was observed that the company has failed to file its financial statements for the years of 3 FYS, which is a serious lapse and attracts penalties under Section 137(3) of the Act.

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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