Monday, March 20, 2017

NCLT ORDERS TO PAY A COMPOUNDING FEE OF Rs 2,00,000 BY M/s MVM Metal and Alloys Pvt Ltd FOR FILING OF ILLEGIBLE ACCOUNTS WITH THE ROC

NCLT ORDERS TO PAY A COMPOUNDING FEE OF Rs 2,00,000 BY M/s MVM Metal and Alloys Pvt Ltd FOR FILING OF ILLEGIBLE ACCOUNTS WITH THE ROC



⁠⁠⁠ Case: M/s MVM Metal and Alloys Pvt Ltd

Company filed financial statements for 2011-12 which were not legible, NCLT compounded the offence on payment of fine of Rs. 50,000 each on the Directors and on the Company totalling Rs. 2,00,000.

Facts: The attached financials which were filed by the Company for the Financial Year 2011-12 in e form were not legible and therefore were not accepted by the ROC and hence the same were not taken on record, thus attracted the violation of Section 162 of the Companies Act, 1956.
Thereafter, the Directors of the Company filed the same in year 2013 and the ROC took the date of filing the hard copy as the date of Compliance and accordingly the Compounding fees was recommended by the ROC to NCLT for the levy of Compounding Fees up to the date of filing of filing of those Financials.


What the Company Act 1956 Says

 Section 162 of the Companies Act, 1956 says: If a company fails to comply with any of the provisions contained in section 159, 160 or 161, the company, and every officer of the company who is in default, shall be punishable with fine which may extend to Rs. 500 for every day during which the default continues.

NCLT is more powerful than CLB
It is time for the company secretaries in employment to know that Registrar is having more power under Companies Act ,2013 and ROC is now initiating those company’s which are not adhering the CA 2013 provisions in letter and spirit. Now , to safeguard the directors of the company for having committed an offence under CA 2013 and paying a compounding fee , Company secretaries are to be more vigil to see that annexures to accounts are legible and readable  which is filed with the Registrar of Companies. 

Courtesy : CS Amerendra  


2 comments:

  1. One should remember that ALways a factual things to me mentioned and poleaded

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  2. No one should file fraudulent accounts and also plead. Like Tarnanai Engineering Limited in 31.10.1994 and 31.03.1994 out of mere book entry of profit declared and paid dividend illegally. Out of capital only.No Profit earned or carried forward Profit. See Gujarat High Court Company Petition No 17/1996. Proved also ignored by Hon. Justice Mr. Mohit Shah and Also Chartered Accountant turned Advocate Mr Sauraabh Soparkar Pleaded Fraud case knowingly. C R Sharedalal & Co Chartered Accountant of Ahmadabad failed to report clearly in their report , being book entry of profit! Not only this but in Public issue Report in Prospectus Failed to report Specifically.Knowingly purposefully better known to Management and Auditors Failed to report and also all these years remained silent over the issues in Hon Court Proceedings . Company Secretary also remained silent. R O C is defending the Company all these years saying Court cases dismissed? You know the meaning Money Powers all the time for last 22 years even in Juduciary.

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