Huge Rs. 9 Lakh Penalty for Missing DIN in Financial Statements – MCA

The Ministry of Corporate Affairs has imposed a substantial penalty of Rs. 9 lakh on PPS Export and Import Private Limited for failing to include Director’s Identification Numbers (DIN) in their financial statements for the fiscal years ending March 31, 2019, 2020, and 2021. The violation of Section 158 of the Companies Act, 2013, was identified during an inquiry, which revealed that the company’s financial statements lacked this crucial detail, despite the e-form containing the DINs. The company and its directors were notified of the non-compliance, admitting to the oversight. Consequently, penalties were assessed under Section 172 of the Act, with the maximum amount due to the company and its directors for each default period. The company and its directors must pay the penalties through e-payment on the MCA website within 90 days, with an option to appeal the order within 60 days. Non-compliance with this order may result in further actions as stipulated under Section 454(8) of the Act.

Government of India
Ministry of Corporate Affairs
Office of the Registrar of Companies,
4th Floor, ‘A’ Wing, Maurya Lok Complex
Dakbunglow Road, Patna-800001
(0612)- 2216150/2950121

Order No. ROC/PAT/Inquiry/37744/801Dated: 02.09.2024

Order for penalty for violation of section 158 of the Companies Act, 2013

PPS EXPORT AND IMPORT PRIVATE LIMITED

CIN: U74999BR2018PTC037744

Company:-

1. Whereas, Company M/s. PPS Export And Import Private Limited, CIN: U74999BR2018PTC037744 (herein after known as Company) is a company incorporated on 05.04.2018 under the provisions of Companies Act, 2013 in the state of Bihar and having its registered office situated at Shop No. 624(A), 6th Floor, Ashiyana Hari Niwas, Dakbunglow Crossing, Patna, Bihar, 800001, India as per MCA website.

Facts about the case:-

2. Whereas, during the course of inquiry, it is observed that the financial statements filed for the financial years ended on 31.03.2019, 31.03.2020 and 31.03.2021 does not consist of Director’s Identification No. (DIN) thereby leading to the violation of Section 158 of the Companies Act, 2013 for the abovementioned period.

3. This office has issued notice for the violation of section 158 of the Companies Act, 2013 to the company and its directors vide letter dated 30.07.2024, for which a reply dated 22.08.2024 has been received from one of the directors of the company inter alia mentioning that we haven’t proper knowledge that the affix directors signature in financial statement should he alongwith DIN no. of respective director. Although the e-form for respective year contain DIN no. alongwith name. only in attachment the DIN no. is missing.

4. Hence, from the reply of the company, it is concluded that the company has admitted the contravention and it is implied that the provisions of Section 158 of the Companies Act, 2013 has been contravened by the company and its directors/ officers in default and therefore they are liable for penalty under section 172 of the Companies Act, 2013.

Section 172:- “If a company is in default in complying with any of the provisions of this chapter and for which no specific penalty or punishment is provided therein, the company and every officer of the company who is in default shall be liable to a penalty of fifty thousand rupees, and in case of continuing failure, with a filthier penalty of five hundred rupees for each day during which such failure continues, subject to a maximum of three lakh rupees in case of a company and one lakh rupees in case of an officer who is in default”.

5. As per clause 85 of section 2 of the Companies Act, 2013, small company means a company whose paid up capital and turnover shall not exceed rupees four crore and rupees forty crore respectively. As per MCA portal, paid up capital of the company- PPS Export and Import Private Limited is Rs. 1,00,000 and the turnover of the company is Rs 76,74,810.00 as per financial year 2019-2020. Therefore, the benefits of small company are extended to this company while adjudicating penalty.

ORDER

6 Therefore, having considered the facts and circumstances of the case, and after taking into account the factors above, I hereby impose a penalty on Company, and its Directors as per table Below under section 172 of the Act for failure in compliance of section 158 of the Companies Act, 2013.

7. The noticee shall pay the amount of penalty individually for the company and its directors (out of own pocket) by way of e-payment (available on Ministry website www.mca.gov.in) under “Pay miscellaneous fees” category in MCA fee and payment Services within 90 (ninety) days of this order. The Challan/SRN generated after payment of penalty through online mode shall be forwarded to this office.

8. Appeal against this order may be filled in writing with the Regional Director (ER), Ministry of Corporate Affairs, Kolkata, within a period of 60 (sixty) days from the date of receipt of this order, in Form ADJ (available on Ministry website mca.gov.in) setting forth the grounds of appeal and shall be accompanied by a certified copy of this order {Section 454(5) and 454(6) of the Act read with Companies (Adjudication of Penalties) Rules, 2014}.

9. Your attention is also invited to section 454(8) of the Act in the event of non-compliance of this order.

(Aparajit Barua)
Adjudicating Officer &
Registrar of Companies-Cum-
Official Liquidator, Patna