The ROC Cuttack, under the Ministry of Corporate Affairs, adjudicated a penalty against Falcon Marine Exports Limited and its officers for violating Section 134(3)(o) read with Section 135 of the Companies Act, 2013. The company’s Board Report for the financial year ending 31.03.2015 failed to disclose details of its Corporate Social Responsibility (CSR) policy, CSR Committee composition, and reasons for not spending the mandatory two percent of average net profits on CSR activities. The company voluntarily sought adjudication, requesting leniency. The Adjudicating Officer imposed a penalty of ₹3,00,000 on the company and ₹50,000 each on the officers in default, namely Prava Ranjan Patnaik, Tara Ranjan Patnaik, and Narayan Sahu, under Section 134(8). The default is to be rectified, and penalties paid within 90 days via the e-Adjudication portal. The order allows appeal to the Regional Director, RD Kolkata, within sixty days. Penalties are payable from personal funds of the officers in default.
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, Odisha, India, 753014
Phone: 0671-2366952
E-mail: roc.cuttack@mca.gov.in
Order ID: PO/ADJ/12-2025/CT/01145 | Dated: 12/12/2025
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 FALCON MARINE EXPORTS LIMITED [herein after known as Company] bearing CIN U15124OR1986PLC001701, is a company registered with this office under the Provisions of the Companies Act, 2013/1956 having its registered office situated at A-22, FALCON HOUSE CUTTACK ROAD NA BHUBANESWAR ORISSA INDIA 751006
Individual details:
In the matter relating to PRAVA RANJAN PATNAIK …………………………..
In the matter relating to TARA RANJAN PATNAIK …………………………..
In the matter relating to NARAYAN SAHU …………………………..
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 – M/s Falcon Marine Exports Limited has requested suo-motto, vide application dated 21.11.2025, for adjudication of the offence for violation of Section 134(3)(o) read with section 135 of the Companies Act, 2013. The details of the violation occurred is as under :-
Section 134(3)(o) of the Companies Act 2013 inter alia provides that ? the Board Report of a company shall include the details about the policy developed and implemented by the company on Corporate Social Responsibility (CSR) initiatives taken during the year.
Section 135(2) of the Companies Act 2013 inter alia provides that ? The Board?s Report under sub-section 3 of section 134 shall disclose the composition of the Corporate Social Responsibility Committee.
The 2nd proviso to section 135(5) of the Companies Act 2013 provides that ? if the company fails to spend at least two percent of the average net profits of the company made during three immediately preceding financial years, the Board shall, in its report made under clause (o) of sub-section (3) of section 134, specify the reasons for not spending the amount.
It is observed from the Boards? Report annexed to the Financial Statements for the financial year ending 31.03.2015 that the Boards? Report has not disclosed the details of the composition of the Corporate Social Responsibility Committee, the details about the policy developed and implemented by the company on corporate social responsibility initiatives taken during the year and not specifying any reasons for not/under spending the Corporate Social Responsibility amount, thereby the company has violated the provisions of Section 134(3)(o) read with section 135 of the Companies Act 2013.
2. N. A.
E.Order:
1. Facts about the case : The company has requested suo-motto, vide application dated 21.11.2025, for adjudication of the offence for violation of Section 134(3)(o) read with section 135 of the Companies Act, 2013. The details of the violation occurred is as under :-
Section 134(3)(o) of the Companies Act 2013 inter alia provides that ? the Board Report of a company shall include the details about the policy developed and implemented by the company on Corporate Social Responsibility (CSR) initiatives taken during the year.
Section 135(2) of the Companies Act 2013 inter alia provides that ? The Board?s Report under sub-section 3 of section 134 shall disclose the composition of the Corporate Social Responsibility Committee.
The 2nd proviso to section 135(5) of the Companies Act 2013 provides that ? if the company fails to spend at least two percent of the average net profits of the company made during three immediately preceding financial years, the Board shall, in its report made under clause (o) of sub-section (3) of section 134, specify the reasons for not spending the amount.
It is observed from the Boards? Report annexed to the Financial Statements for the financial year ending 31.03.2015 that the Boards? Report has not disclosed the details of the composition of the Corporate Social Responsibility Committee, the details about the policy developed and implemented by the company on corporate social responsibility initiatives taken during the year and not specifying any reasons for not/under spending the Corporate Social Responsibility amount, thereby the company has violated the provisions of Section 134(3)(o) read with section 135 of the Companies Act 2013.
.
Reply of the company : In response to the SCN, the company has stated that they have voluntarily filed application for adjudication of the matter and requested to take a lenient view on the aforesaid matter and adjudicate the default made under Section 134(3)(o) read with section 135 of the Companies Act 2013.
Order :
The company has approached for adjudication of the offence. Hence, the A.O. do hereby impose penalty upon the company and its Directors/Officers in default for the relevant period under the provisions of Section 134(8) of the Companies Act, 2013 for violation of Section 134(3)(o) read with section 135 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:
| (A) | Name of person on whom penalty imposed (B) | Rectification of Default required (C) | Penalty Amount (D) | Additional Penalty (E) (*Per day of continuing default i.e. date of rectification of default less order issue date) | Maximum limit for Penalty (F) |
| 1 | FALCON MARINE EXPORTS LIMITED having CIN as U15124OR1986P LC001701 | 300000 | 0 | 300000 | |
| 2 | PRAVA RANJAN PATNAIK having DIN as 00417793 |
50000 | 0 | 50000 | |
| 3 | TARA RANJAN PATNAIK having DIN as 00447719 | 50000 | 0 | 50000 | |
| 4 | NARAYAN SAHU having PAN as ABTPS2592K |
50000 | 0 | 50000 |
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 Kolkata 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.
Sudhir Kapoor,
Registrar of Companies
ROC Cuttack
