ROC Imposes Rs. 3.5 Lakh Penalty on Company and Its Director for Non-Maintenance of Audit Trail

The Registrar of Companies (ROC) Ahmedabad under the Ministry of Finance (MCA), Government of India, has issued an Adjudication Order dated December 02, 2025, under Section 454 of the Companies Act, 2013, imposing a penalty on a company, namely Topsun Energy Limited, with CIN U31900GJ2007PLC051489, and its one director named Chintan Gandabhai Patel having DIN 01660438, for the contravention of Section 134(8) of the Companies Act, 2013.

The company voluntarily filed an application (GNL-1) dated July 30, 2025, for adjudication under Section 134(3)(f) of the Companies Act, 2013. During an internal due diligence, the company found that it had violated Section 134(3)(f) read with Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014. In the Auditor’s Report for Financial Year 2023-24, the auditors observed that the accounting software used by the company did not have an audit trail (edit log) feature, which is mandatory under the amended rules.

In conclusion to this, auditors could not confirm whether audit trails were properly maintained. Therefore, the default took place in the time period between April 01, 2023, and March 31, 2024, attracting a penalty under Section 134(8), but the non-compliance has now been corrected.

In conclusion, the ROC Ahmedabad imposed a penalty of Rs. 3 lakh on the company and Rs. 50,000 on its director, Chintan Gandabhai Patel. The company has been directed to correct the default and pay the imposed penalty amount within 90 days of receipt of the order.

Additionally, the office asserted that if the company is dissatisfied with the present order, it can further challenge the penalty amount before the Regional Director, RD Ahmedabad, within a period of sixty days from the date of receiving the order.