Destruction of Tally Data Does Not Prevent Penalty for Delay in Filing Financial Statements with ROC

The Registrar of Companies, Cuttack, passed an adjudication order under Section 454 of the Companies Act, 2013 against IG Strategic Systems Private Limited for violation of Section 137(1) due to failure to file financial statements for the financial year ending 31.03.2025 within the prescribed period. During the e-hearing, the company’s authorised representative admitted the default and explained that the books of account maintained in Tally software had been destroyed, resulting in delay in retrieval of data, preparation, audit, and filing of financial statements. The representative assured that the financial statements would be filed within three months and requested waiver or reduction of penalty. After considering the submissions and records available on the MCA portal, the adjudicating authority held that the company violated Section 137(1). Penalty was imposed under Section 137(3) read with Section 446B for a delay period of 195 days, amounting to Rs.14,750 each on the company and its two directors. The company was directed to rectify the default and pay the penalties within 90 days.

GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
ROC Cuttack
ROC-cum-Official Liquidator, Ministry Of Corporate Affairs, Corporate Bhawan, 2nd & 3rd Floor, Plot No-9(P), Sector-1,
CDA, Cuttack, Orissa, India, 753014
Phone: 0671-2366952
E-mail: roc.cuttack@mca.gov.in

Order ID: PO/ADJ/05-2026/CT/02134 | Dated: 14/05/2026

ORDER FOR ADJUDICATION OF PENALTY UNDER SECTION 454 OF THE COMPANIES ACT, 2013 (THE ACT’) FOR VIOLATION OF SECTION 137(3) OF THE COMPANIES ACT, 2013.

A. Appointment of Adjudicating Officer:

Ministry of Corporate Affairs vide its Gazette notification number S.O. 698(E) dated 10/02/2026 appointed undersigned as Adjudicating Officer in exercise of the powers conferred by section 454 of the Companies Act, 2013 [herein after known as Act] read with Companies (Adjudication of Penalties) Rules, 2014 for adjudging penalties under the provisions of this Act.

B. Company details:

In the matter relating to IG STRATEGIC SYSTEMS PRIVATE LIMITED [herein after known as Company] bearing CIN U749990R2018PTCO28667, is a company registered with this office under the Provisions of the Companies Act, 2013/1956 having its registered office situated at IDEA LAB, VSSUT BURLA PO/PS BURLA NA SAMBALPUR SAMBALPUR ORISSA INDIA 768018

Individual details:

In the matter relating to BODHISATTWA SANGHAPRIYA _________

In the matter relating to OM PRAKASH DAS ____________

C. Provisions of the Act:

(3) If a company fails to file the copy of the financial statements under sub-section (1) or sub-section (2), as the case may be, before the expiry of the period specified therein, the company shall be liable to a penalty of ten thousand rupees and in case of continuing failure, with a further penalty of one hundred rupees for each day during which such failure continues, subject to a maximum of two lakh rupees, and the managing director and the Chief Financial Officer of the company, if any, and, in the absence of the managing director and the Chief Financial Officer, any other director who is charged by the Board with the responsibility of complying with the provisions of this section, and, in the absence of any such director, all the directors of the company, shall be shall be liable to a penalty of ten thousand rupees and in case of continuing failure, with further penalty of one hundred rupees for each day after the first during which such failure continues, subject to a maximum of fifty thousand rupees.

D. Facts about the case:

1. Default committed by the officers in default/noticee – It is observed that the company has not filed its Financial Statements for the Financial Year ending 31.03.2025 till date as per requirement of Section 137(1) of the Companies Act 2013. Therefore, the company has contravened the provisions of Section 137(1) of the Companies Act 2013 and hence, the company and its officers/directors in default are liable to be punished under Section 137(3) of the Companies Act 2013.

2. The company and its directos/officers in default have not submitted reply to the SCN within the stipulated time period. Hence, to ensure an opportunity being heard, e-hearig was scheduled and held on 27.04.2026.

E. Order:

1. Shri Soumya Sujit Mishra, Practising Company Secretary, appeared in the e-hearing on the scheduled date and time on behalf of the company and its Directors/Officers in default. During the course of hearing, he admitted that the company has not yet filed its Financial Statements for the Financial Year ended 31.03.2025.

Shri Mishra submitted that the books of accounts of the company maintained in the Tally software package were destroyed and retrieval/restoration of the data is presently under process, which has resulted in delay in preparation and audit of the Financial Statements. It was further submitted that upon retrieval of the data, the Financial Statements would be prepared, audited and filed with the Ministry of Corporate Affairs. Shri Mishra, Authorised Representative of the company and its Officers in default, assured that the Financial Statements for the Financial Year ended 31.03.2025 shall be filed within a period of three months. He further prayed that, considering the aforesaid circumstances, a lenient view may be taken and the penalty may be waived/reduced.

The company, through its Authorised Representative, has admitted that the Financial Statements for the Financial Year ended 31.03.2025 have not been filed till date. It is also observed from the records available on the MCA portal that the company has failed to file its Financial Statements for the Financial Year ended 31.03.2025 within the prescribed period as required under Section 137(1) of the Companies Act, 2013.

Having considered the submissions made during the hearing, the facts and circumstances of the case, and the records/documents available on record, it is concluded that the company has violated the provisions of Section 137(1) of the Companies Act, 2013. Accordingly, in exercise of the powers conferred under Section 137(3) read with Section 446B of the Companies Act, 2013, penalty is hereby imposed upon the company and its Directors/Officers in default for the period commencing from 31.10.2025, being the due date of filing, till 13.05.2026, i.e., for a period of 195 days.

The company and the Officers in default shall pay the penalty amount as mentioned herein below through online mode in compliance with Rule 3(14) of the Companies (Adjudication of Penalties) Amendment Rules, 2019, within a period of 90 days from the date of receipt of this order, specifying the details of this order and the name of the noticee making such payment. Further, the company shall file e-Form INC-28 along with a copy of this order and the payment challans in proof of payment of penalty.

2. The details of penalty imposed on the company, officers in default and others are shown in the table below:

3. The notified officers in default/noticee shall rectify the default mentioned above and pay the penalty, so applicable within 90 days of receipt of the order.

4. The notified officers in default/noticee shall pay the penalty amount via ‘e-Adjudication’ facility which can be accessed through the respective login IDs on the website of Ministry of Corporate Affairs and upload the copy of paid challan / SRN of e-filing (if applicable) on the ‘e-Adjudication’ portal itself. It is also directed that the penalty so imposed upon the officers in default shall be paid from their personal sources/income.

5. Appeal against this order may be filed in writing with the Regional Director, RD Hyderabad within a period of sixty days from the date of receipt of this order, in Form ADJ setting for the grounds of appeal and shall be accompanied by a certified copy of this order [Section 454 (5) & 454 (6) of the Act, read with Companies (Adjudication of Penalties) Rules, 2014].

6. For penal consequences of non-payment of penalty within the prescribed time limit, please refer Section 454(8) of the Companies Act, 2013.

Sitaram Gupta,
Registrar of Companies
ROC Cuttack