ROC Imposes Rs 3 Lakh Penalty for non-mention of DIN on financial statements

The Registrar of Companies (ROC), Uttar Pradesh, recently imposed a penalty on the company named “Priyanshi Nidhi Limited” and its officer in default for failure to mention the Director Identification Number (DIN) below the signatures of the directors in the financial statements.

Backstory of the case

The Ministry of Corporate Affairs (MCA) had conducted an inquiry into the company under Section 206(4) of the Companies Act, 2013, through a letter dated April 10, 2020.

During the inquiry, the Inquiring Officer found that the company’s directors did not mention their Director Identification Number (DIN) below their signatures in the financial statements for the financial years 2017-18 and 2018-19.

However, according to Section 158 of the Companies Act, 2013, it is mandatory for directors to mention their DIN in such documents. The failure to do so is considered a legal violation.

The officer submitted the inquiry report on August 23, 2022, highlighting this non-compliance. Following this, the RDNR instructed the concerned office on August 31, 2022, to initiate penal action against the company and its officers in default under Section 172 of the Companies Act, 2013, for the financial year ending March 31, 2018.

As a result, ROC imposed a Rs 300,000 penalty on the company and Rs 100,000 each on its officers in default.