ROC Fines company for Non-Attachment of Auditors Qualified opinion in Board Report

The Ministry of Corporate Affairs (MCA) in the matter of M/s HOLITECH INDIA PRIVATE LIMITED has levied fine on company for Non-Attachment of Auditors Qualified opinion in Board Report.

The Company M/s HOLITECH INDIA PRIVATE LIMITED has been registered under the provisions of Companies Act on 11.04.2018 and is having its registered office situated at Plot No. 67, Ecotech-1 Extension- I, Greater Noida, Gautam buddha Nagar, Greater Noida, Uttar Pradesh, 201310. The authorized capital of the company is Rs. 1,00,00,00,000.

The Directorate vide its letter no. lnq./Guard/2021/10971 dated 17.12.2021 and Ministry’s letter no. F.No. CL-II-08/131/2021-DGCoA-MCA dated 13.12.2021 directed to conduct the inquiry u/s. 206(4) of the Companies Act, 2013. The Inquiry Officer (IO) has observed from the audit report for the year 19-20 that auditor has given qualified report and mentioned that the company did not have appropriate system regarding receipt and issue of inventories for production, overheads, trade payable, Expenses which could potentially result in under statement and overstatement of financial. Board Report does not include the qualified opinion made by the auditor in his report. Hence it is a violation of Section 134(3) (f) of the Companies Act, 2013.

The reply furnished by the company in this regard was not appropriate/tenable. The Regional Director vide its letter dated 14.07.2022 has accorded the sanction to take action on the basis of Inquiry report dated 11.07.2022 in which said non-compliance was reported. Thus, it is evident that the company and its Directors have failed to comply with the provisions of section 134(3)(f) of the Companies Act, 2013. And are thus liable for penal provisions.

Accordingly, a Show Cause Notice No. 07/01/Adjudication-85(1)/ HOLITECH INDIA PRIVATE LIMITED /4743-4754 dated 10.10.2023 was issued to the company and its officers in default under section under Section 134(3)(f) of the Companies Act, 2013 read with Companies (Adjudication of Penalties) Rules, 2014 by this office. This office has not received the said letter undelivered also.

The company and its officers in default have failed to furnish any reply to the said Show Cause Notice, hence no hearing was fixed for this matter.

Further, neither any representative of the company nor its directors have either furnished their reply or have appeared before the undersigned which has further strengthened the apprehension that the company and its Directors have failed to comply with the provisions of 134(3)(f) of the Companies Act, 2013, in making the Board Report which does not include the qualified opinion made by the auditor in his report, thereby attracting the penal provisions mentioned under Section 134(8) of the Act.

Having considered the facts and circumstances of the case and after taking into account the factors above, hereby impose penalty of Rs. 3,00,000 (Rupees Three Lakh only) on company and penalty of Rs. 50,000(Rupees fifty thousand only) on each Director under section 134(8) of the Companies Act, 2013 for failure to make compliance of Section 134(3) (f) of the Companies Act, 2013. It is of this opinion that penalty is commensurate with the aforesaid failure committed by the Noticee.

The Noticee shall pay the amount of penalty by way of Demand Draft in favour of Pay and Accounts Officer, Ministry of Corporate Affairs, New Delhi, payable at Delhi, within 90 days receipt of this order. The Demand Draft shall be forwarded to this office Address.

Appeal against this order may be filed in writing with the Regional Director (No11hern Region), Ministry of Corporate Affairs, CGO Complex, Lodi Road, New Delhi, within a period of sixty days from the date of receipt of this order, in Form ADJ 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].

For Official Order Download PDF Given Below: