In a significant regulatory action, the Registrar of Companies (ROC) in Chhattisgarh has imposed penalties on Hosak Industries and Plastics Ltd. and its defaulting officers due to the company’s failure to file the mandatory ‘Reconciliation of Share Capital Audit Report’ using e-form PAS-6.
Background of the Penalty
Hosak Industries applied for a reduction of share capital under Section 66 of the Companies Act, 2013. During the ROC’s review process, it was discovered that the company was required to submit the Reconciliation of Share Capital Audit Report in e-form PAS-6. This report is essential as it provides detailed information and updates on share capital on a half-yearly basis, specifically for the period ending September 30, 2019.
Violation of Filing Requirements
The failure to file PAS-6 within the stipulated timeframe constitutes a breach of sub-rule 8 of Rule 9A of the Companies (Prospectus and Allotment of Securities) Rules, 2014. This violation attracts penalties under Section 450 of the Companies Act, 2013.
To address this infringement, the ROC issued show cause notices to both the company and its officers through Email and Speed Post. Unfortunately, the company and its officers neglected to respond, nor did they request an e-hearing. Consequently, the Adjudicating Officer ruled that an e-hearing was unnecessary.
Consequences of Non-Compliance
Due to the lack of response and non-compliance with Rule 9A (8) for the half-year ended September 30, 2019, the records on the MCA portal further confirm that e-form PAS-6 remains unfiled to this day. As a result, both the company and its officers are liable for penalties as outlined in the Companies Act, 2013.
In conclusion, the ROC’s enforcement action underscores the importance of timely compliance with regulatory requirements. Companies must ensure strict adherence to filing obligations to avoid severe penalties and legal repercussions.