IN RE Vs. CLARO CONSULTANCY PVT LTD

JUDGEMENT

(1.) An application u/s. 621A of the Companies Act, 1956 praying for compounding of offences u/s. 215(3) & 217(3) has been filed by the petitioners. Objections have been received from the Office of the SFIO in addition to the report from the RoC. The aforesaid violations were observed during the course of investigation u/s. 235(1) of the Act conducted by the SFIO. It is stated that the company did not follow the statutory procedure for adoption of annual accounts as they held only one Board Meeting during each of the financial years 2007-08 to 2010-11. In the single Board Meeting, the Balance Sheet was considered and signed. In the same meeting the Auditor's Report and the Director's Report were also approved. This procedure was adopted year after year without adhering to the prescribed norms. The period of default is therefore four years i.e., 2007-08 to 2010-11.

(2.) The petitioners submit that the default has been made good. Being a private company with less items on its Agenda, the Board Meetings did not take much time and the Auditor was called for adoption of the accounts. His presence was not marked as there were other items to be discussed.

(3.) The aforesaid explanation of the petitioners was not accepted and prosecution for violations of the statutory requirements has been initiated against them.