ROC KOLKATA FINED AUDITOR FOR NON-DISCLOSURE OF RS 37 CRORES INVESTMENT DETAILS IN THE FINANCIAL STATEMENTS ROC KOLKATA VS PINGAL SALES PRIVATE LIMITED

 ROC KOLKATA FINED AUDITOR FOR NON-DISCLOSURE OF RS 37 CRORES INVESTMENT DETAILS IN THE FINANCIAL STATEMENTS

ROC KOLKATA VS PINGAL SALES

 PRIVATE LIMITED

FACTS OF THE CASE

The company had disclosed investments worth over ₹37.46 crore but failed to provide mandatory particulars such as classification of investments, security details, book value, market value, and names of associated entities as required under Section 129 read with Part I of Schedule III of the Companies Act, 2013.

The auditor was also found to have failed in reporting this non-compliance under Section 143 read with Section 129(1). Despite issuance of show cause notice and reminder, no reply was submitted by the auditor. Consequently, ROC Kolkata imposed a penalty of ₹10,000 on the auditor and directed rectification of default within 90 days, with liberty to appeal before the Regional Director.

SECTION 143 READ WITH SECTION 129(1) OF THE COMPANIES ACT 2013

Section 143 read with Section 129(1) of the Companies Act 2013 creates a statutory framework requiring statutory auditors to ensure that financial statements give a true and fair view of the company’s state of affairs and comply with all notified Accounting Standards and Schedule III requirements

LESSONS LEARNED

ROC Kolkata’s action against Pingal Sales Pvt Ltd and its auditor underscores the serious consequences of non-disclosure and non-compliance under the Companies Act, 2013.

 This case is a reminder for auditors and directors to maintain strict adherence to statutory obligations to avoid personal penalties and reputational damage.

 

# YOUR COMPLIANCE PARTNER R V SECKAR, FCS, LLB 79047 19295,