Penalty for Non-Filing of Financial Statements by Company: MCA levied penalty

The Registrar of Companies, Bihar, has imposed a penalty on M/s. Kumar & Vir Skybuilders Private Limited for violating Section 137 of the Companies Act, 2013, by failing to file its financial statements for the financial year 2022-2023. Despite being issued a notice, the company did not respond or rectify the default, leading to penalties being levied on both the company and its directors. Under Section 137(3), the company and its directors are liable for a penalty of Rs. 20,150 each, calculated based on the number of days in default. However, as a small company under Section 446B, the penalties are capped at half of the maximum amount specified by the Act. The company and its directors must pay the penalties within 90 days, and they have the right to appeal this order within 60 days. Non-compliance may result in further action under Section 454(8) of the Act.

Government of India
Ministry of Corporate Affairs
Office of the Registrar of Companies, Bihar
4^th Floor, ‘A’ Wing, Maurya Lok Complex
Dakbunglow Road, Patna-800001
Phone No.  (0612)- 2216150/2950121

Order No.: ROC/ PAT/SCN/sec. 137/37964/756 Date: 28.08.2024

Order for penalty for violation of section 137 of the Companies Act, 2013
In the Matter of

M/S. KUMAR & VIR SKYBUILDERS PRIVATE LIMITED
CIN: U45309BR2018PTC037964

Appointment of Adjudication Officer:-

1. The Ministry of Corporate Affairs vide its Gazette Notification No. A-42011/112/2014- Ad. II dated 24.03.2015 has appointed the undersigned as Adjudicating Officer in exercise of the powers conferred under 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.

Company:-

2. Whereas, Company M/ s. Kumar & Vir Skybuilders Private Limited, CIN-U45309BR2018PTC037964 (herein after known as Company) is a registered company with this office under the provisions of the Companies Act, 2013 (or previous Acts in force, as applicable) having its registered office situated at C/o. Sajjan Kr, House Name- Ved Niwas, Dashrath Bhawan Gali, Near Aprajita Apt., Agam Kuan, Kankarbagh, Patna, Bihar, 800007, India as per MCA website.

Facts about the case:-

3. Whereas, the company is in default for filing its Financial Statements since its incorporation, i.e., for the Financial year 2022-2023 with the office of Registrar of Companies, Patna. Hence, this office has issued notice for default under section 137 of the Companies Act, 2013 vide No ROC/PAT/SCN/Sec. 137/37964/461 to 463 dated 10.07.2024.

4. Whereas, this office has not received any reply from the company and its directors. As per MCA record, the company has not filed its Financial Statements for the Financial year 2022-2023 till date. Hence, it appears that the provisions of Section 137 of the Companies Act, 2013 have been contravened by the company and its directors/officers and therefore they are liable for penalty u/s 137(3) of the Companies Act, 2013.

Section 137(3) states that:- “If a company fails to file the copy of the financial statements under sub­section (1) or sub-section (2), as the case may be, before the expiry of the period specified therein, the company shall he liable to a penalty of ten thousand rupees and in case of continuing failure, with a fiirther 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 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”.

5. Further Section 446B states that “if penalty is payable for non-compliance of any of the provisions of this Act by a One Person Company, small company, start-up company or Producer Company, or by any of its officer in default, or any other person in respect of such company, then such company, its officer in default or any other person, as the case may be, shall be liable to a penalty which shall not be more than one-half of the penalty specified in such provisions subject to a maximum of two lakh rupees in case of a company and one lakh rupees in case of an officer who is in default or any other person, as the case may be”.

6. 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- Kumar & Vir Skybuilders Private Limited, CIN-U45309BR2018PTC037964 is Rs. 5,00,000/- and the turnover of the company as per balance sheet filed for the financial year 2021-22 is Rs. 29,93,586.20. Therefore, the benefits of small company are extended to this company while adjudicating penalty.

ORDER

7. Having considered the facts and circumstances of the case, and after taking into account the factors above, I hereby impose a penalty of Rs. 20,150 (Twenty Thousand One Hundred and Fifty only) on Company, and Rs. 20,150 (Twenty Thousand One Hundred and Fifty only) each on the 2 (two) Directors of the company as per Table Below for violation of Section 137 of the Companies Act, 2013 for the financial year 2022-2023.

(* No of days have been calculated from 31.10.2023 to till date of order, i.e., 28.08.2024 for FY 2022-­2023)

8. 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.

9. 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 www.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}.

10. 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