ROC Slaps Penalty on Company and Directors for Failure to File Consolidated Financial Statements:

ROC Slaps Penalty on Company and Directors for Failure to File Consolidated Financial Statements The Registrar of Companies (ROC), Gwalior, has imposed a penalty amounting to Rs 3 lakh on the company, Xtranet Technologies Limited, and its two directors under Section 454 of the Companies Act 2013, through an order of adjudication dated March 03, 2026. The penal action has been taken for the violation of Section 137(3) of the Companies Act, 2013. The disputed company, having CIN U72200MP2002PLC014956, had voluntarily filed an application for adjudication, acknowledging non-compliance committed by it by violating provisions of Section 137 of the Companies Act, 2013, read with Rule 12 of the Companies (Accounts) Rules, 2014. The said application was furnished using e-Form GNL-1, SRN: AB7190596, on September 23, 2025.

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When the ROC verified the facts mentioned in the application, it noted that the company had indeed violated provisions of Section 137 of the Companies Act, 2013, as the company was legally required to prepare Consolidated Financial Statements (CFS) of itself and its subsidiary using the same form and format as used for its own in Form AOC-4 CFS, along with the prescribed fees with the Registrar of Companies (ROC) for the financial year 2018-19. At the time of filing the same form, in answer to the question, 'Whether consolidated financial statements are required or not', the company had wrongly selected 'No'. This selection eliminated the requirement of filing consolidated financial statements; consequently, the company did not file Form AOC-4 CFS for the financial year 2018-19. However, the company claimed that this was a genuine mistake, not made intentionally.

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Considering the mistake accepted by the company, the ROC imposed a penalty amounting to Rs. 2 lakh on the company, Xtranet Technologies Limited, and Rs. 1 lakh on its two directors, Jogendrapal Singh Alagh and Sukhbir Singh Kukreja (Rs. 50,000 on each director). The company has been awarded a time limit of 90 days to rectify the default and pay the levied penalty amount.