Section 158 of Companies Act, 2013 states that every person or company, while filing any return, information or particulars as are required to be furnished under this Act, shall mention the Director Identification Number ("DIN") in such return, information or particulars in case such return, information or particulars relate to the director or contain any reference of any director.
In recent case of M/s. Premier Solution Private Limited, the order of adjudicating officer dated 7th September 2022 ROC Ahmedabad has imposed the penalty of Rs.6,00,000/- on Company and Directors for not mentioning the DIN in Financial Statements.
Section 158 does not provide any specific penalty if DIN is not mentioned, however, Section 172 of Companies Act, 2013 states that if the "Company & every officer who is in default in complying with any provision for which no specific penalty is provided under the act shall be liable to penalty of fifty thousand, and in case continuing failure with further penalty of rupees five hundred for each day during such failure continues subject to maximum of three lakh rupees in case of company and one lakh in case of officer who is in default."
IMMEDIATE ACTIONS TO BE TAKEN
During our practice we observed that Directors are not mentioning DIN on papers, returns, financial statement, annual return etc. which they are filing with ROC, NCLT or Regional Director, Income Tax or any other authorities.
One should ensure that DIN is written, wherever he is signing as Director of the Company.
ROC Order has been enclosed below
Disclaimer: This article has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. This article cannot be relied upon to cover the specific situation and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact Affluence Advisory Private Limited to discuss these matters in the context of your particular circumstances. Affluence Advisory Private Limited, Its Partners, Directors, Employees, and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this article or for any decision based on it.
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