DIN is not mentioned in financial statements: MCA imposes a penalty

The Ministry of Corporate Affairs has issued a penalty order against Sonasuman Constech Engineers Private Limited and its directors for violating Section 158 of the Companies Act, 2013. The company did not include Director Identification Numbers (DIN) in its financial statements for fiscal year 2017. -18 and 2019-20, as required by law. Despite explanations including lack of expertise in corporate law and steps to correct the problem, the company admitted the breach. Under Section 172 of the Companies Act, the company and each of its directors were imposed a penalty of ₹50,000 per annum for each year of non-compliance, for a total of ₹100,000 for two years. The company and its executives must pay the fine within 90 days and can appeal the decision within 60 days. Failure to comply with the decision may lead to further consequences under Section 454(8) of the Act.

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

Order No. ROC/PAT/Inquiry/36124/978 Date: 14.11.2024

Penalty decision for breach of section 158 of the Companies Act 2013
SONASUMAN CONSTECH ENGINEERS PRIVATE LIMITED
GIN: U45500BR2017PTC036124

Company:-

1. Whereas the Company M/s. Sonasuman Constech Engineers Private Limited, CIN: U45500BR2017PTC036124 (hereinafter referred to as the Company) is a company incorporated on 30.10.2017 in accordance with its provisions. Companies Law, 2013 It is located in the state of Bihar and has its registered office at C/o. Shailendra Jha, Flat No.502, Block-A4, Trivantpuram City, Patna, Bihar, 801105, India, as per MCA website.

Facts about the case:-

2. Upon examination, it is understood that the financial statements presented for the financial years ending 31.03.2018 and 31.03.2020 do not consist of the Director Identification Number (DIN) and therefore the provision of Article 158 is violated. Companies Act, 2013 for the above mentioned period.

3. This office has sent a letter dated 06.08.2024 to the company and its directors regarding the violation of Article 158 of the Companies Act, 2013; For this, a response video email dated 28.08.2024 was received, which states, among other things: “CA Mr. Ram Raghav Choudhary is out of the station for a while. _.few days. I therefore request that you allow an extension of time for the response to your notice to be sent.^– . However, the response sent by the company was not found satisfactory, and the company was informed via this office e-mail dated 02.09.2024. Additionally, an e-mail dated 26.09.2024 was received from the company, inter alia: “We are a small company and none of the directors have expertise in corporate law. Although we intend to fully comply with all applicable laws and regulations, there may sometimes be limitations due to our dependence on consultants. We would also like to point out that we are already taking corrective measures to follow best practices. Please check and verify that all provisions relating to Section 158 have been properly complied with in the application made by you. ours company in the last 3 years. 31

4. Therefore, from the company’s reply, it is inferred that the company has admitted the non-compliance and it is implied that the provisions of Section 158 of the Companies Act, 2013 have been violated in default by the company and its directors/officers. and are therefore subject to penalties under section 172 of the Companies Act 2013.

Chapter 172:- “If a company defaults in complying with any of the provisions of this chapter and no specific penalty or penalty is provided herein, the company and every officer of the defaulting company shall be subject to a penalty of fifty thousand pounds. rupees and in case of continuing failure, subject to a maximum of three lakh rupees in the case of a company and one lakh rupees in the case of an officer, with an additional penalty of five hundred rupees for each day on which such failure continues. by default”.

5. Pursuant to section 85 of chapter 2 of the Companies Act 2013, small company means a company whose paid-up capital and turnover shall not exceed four crore rupees and forty crore rupees respectively. According to MCA portal, the paid-up capital of Sonasuman Constech Engineers Private Limited is Rs. 500,000.00 and the turnover of the company is Rs. 1,18,05,571.02/- as of financial year 2018-2019. For this reason, while the penalty is imposed, the interests of the small company are also recognized for this company.

ORDER

6. Therefore, having considered the facts and circumstances of the case and taking into account the above factors, I impose a penalty on the Company and its Directors for non-compliance with Section 172 as per the table below under Section 172 of the Act. 158 of the Companies Act, 2013.

7. The person who receives the notice will pay the penalty amount to the company and its managers separately (out of his own pocket) via e-payment (available on the Ministry’s website). w mca.gov.in) under ^–Pay MCA fee and Miscellaneous fees in payment Services within 90 (ninety) days from this order” category. After payment of the penalty through online mode, the generated Challan/SRN will be forwarded to this office.

8. Objection against this order may be filed in writing to the Regional Director (ER), Ministry of Corporate Affairs, Kolkata, within 60 (sixty) days from the date of receipt of this order, through Form ADJ (available at). Ministry website wvN.mca.gov.in explaining the grounds for appeal) and a certified copy of this decision shall be attached thereto {Sections 454(5) and 454(6) of the Act Read with Companies (Decision of Penalties) Rules, 2014}.

9. In case of non-compliance with this order, we also draw your attention to Article 454(8) of the Law.

10. This order can also be treated as a notice under section 20 of the Companies Act 2013.

(K.^–C.Meena)
Referee Officer &
Registrar of Companies-Cum-
Official Liquidator, Patna.