Penalty Imposed for Failure to File Directors’ Report with Financial Statements

The Registrar of Companies, Kanpur passed an adjudication order under Section 454 of the Companies Act, 2013 for violation of Section 134, relating to failure to attach the Board of Directors’ Report to the financial statements for the year ended 31 March 2016. An inquiry under Section 206(4) revealed that the directors’ report was not filed along with the financial statements, a mandatory statutory requirement. The violation was reported by the Inquiring Officer and, despite issuance of a show cause notice, neither the company nor its officers responded or sought a personal hearing. Considering the continued non-compliance and absence of any explanation, the Adjudicating Officer imposed penalties strictly in terms of Section 134(8). A penalty of ₹3 lakh was levied on the company and ₹50,000 each on six officers in default. The order directs rectification of the default and payment of penalties within 90 days, with a right of appeal to the Regional Director within the prescribed time.

GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
ROC Kanpur
Registrar of Companies, 37/17, Westcottt Buidling, The Mall, Kanpur, Uttar Pradesh, India, 208001
Phone: 0512-2310443,2310227,2310323
E-mail: roc.kanpur@mca.gov.in

Order ID: PO/ADJ/01-2026/KN/01431 | Dated: 23/01/2026

ORDER FOR ADJUDICATION OF PENALTY UNDER SECTION 454 OF THE COMPANIES ACT, 2013 (‘THE ACT’) FOR VIOLATION OF SECTION 134(8) OF THE COMPANIES ACT, 2013.

A. Appointment of Adjudicating Officer:

Ministry of Corporate Affairs vide its  Gazette notification number S.O. 831(E) dated 24/03/2015 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 SHIVGANGA NIDHI LIMITED [herein after known as Company] bearing CIN U65923UP2015PLC072227, is a company registered with this office under the Provisions of the Companies Act, 2013/1956 having its registered office situated at S-12/35 SATYAM COMPLEX, PIYARIYA POKHARI TELIYABAG NA VARANASI VARANASI UTTAR PRADESH INDIA 221002

Individual details:

In the matter relating to AWADHESH KUMAR RAJBHAR………..

In the matter relating to AJAY KUMAR………..

In the matter relating to SANJAY NOHAR KUSHVAHA………

In the matter relating to SHIVAM MALVIYA……………

In the matter relating to HARBENDRA SINGH………..

In the matter relating to DINESH CHANDRA…………..

C. Provisions of the Act:

(8) If a company is in default in complying with the provisions of this section, the company shall be liable to a penalty of three lakh rupees and every officer of the company who is in default shall be liable to a penalty of fifty thousand rupees

D. Facts about the case:

1. Default committed by the officers in default/noticee – SCA MCA vide letter dated 10.04.2020 directed to conduct the Inquiry u/s. 206(4) of the Companies Act, 2013. During the Couse of Inquiry, Inquiring Officer has observed/pointed out that ?It has been observed from the MCA21 Registry that the Company has not attached the report of its Board of Directors to the financial statements for the year ending 31st March 2016. Therefore, the company has violated Section 134 of the Companies Act, 2013 respectively penal action as contemplated under Section 134(8) of the Companies Act, 2013 may be initiated against the Company and its officers in default for violation of Section 134 of the Companies Act, 2013?. The said violation was reported by the Inquiring Officer in his report dated 08.09.2022. Accordingly, the office of DGCoA vide its File No. CL-II-04/54/2023-O/o DGCoA-MCA dated 05.10.2023 directed this office to take necessary action for non-compliance of section 134 of the Companies Act, 2013 for the financial year 31.03.2016.

2. Neither any response has been received from the company and its officers-in-default nor any request of hearing received in this regard

E. Order:

1. This office issued Show Cause Notice on 05.12.2025 to the company and its officer-in-default as the company and its Directors have failed to comply with the provisions of section 134 of the Companies Act, 2013, in filing of the director report for the Financial Year ended as at 31.03.2016, thereby attracting the penal provisions mentioned under Section 134(8) of the Act.

More than 30 days have expired from issue of Show Cause Notice, no response has been received till date. The company and its officer-in default have also not requested for hearing. In the said circumstances, penalty as applicable as mentioned below is being imposed upon the company as well as its officer-in default as per Section 134 (8) of the Companies Act, 2013.

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 Noida 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.

Sanjay Bose,
Registrar of Companies
ROC Kanpur