In this article, we will take you through the mandatory annual filing requirements under Section 92 and Section 137 of the Companies Act, 2013, focusing on the implications of non-compliance and the penalties involved. Section 92(5) mandates that every company, including its directors, must file an annual return, while Section 137(3) requires the filing of the financial statement with the Registrar of Companies (ROC) within a specified time. Failure to comply with these provisions can result in penalties being levied against both the company and its directors, as demonstrated in the case of Karnawat Metal Industries Limited. The company’s failure to timely file its financial statements and annual return led to the imposition of penalties by the ROC.
Applicable Provisions
The case involves an appeal under Section 454(5) of the Companies Act, 2013, concerning the adjudication of penalties for defaulting in filling of its annual return and financial statement for the Financial Year. The matter was brought before the Regional Director (WR), Mumbai, for consideration.
Facts of the Case with ROC and RD
XEC Blue Metals Private Limited, a company registered under the Companies Act, 1956, with its registered office in Goa, was found to be in default of Section 92(5) and section 137 (3) of the Companies Act 2013. The ROC passed its order as on 03/06/2019.
The appeal is filled on 04/11/2019. As per section 454 (6) of the Act, appeal should be filled within a period of 60 days from the date on which the copy of the order passed by the Adjudicating officer is received by the aggrieved person.
On the examination of the appeal, it is seen that the appeal is filled beyond the 60 days from the date of receipt of Adjudication Order by the company. Thus, the appeal is not filled as per section 454(6) of the Act.
Thus, it has been held that the authority is not vested with any powers to condone such non-compliance, resultantly the captioned appeal is defective/non- complaint to the mandatory requirements and thus is rejected.