If a company fails to file its annual return, it is punishable with a fine which shall not be less than Rs.50000 but which may extend to Rs.5 lakhs. Also, every Officer (Director) of the company who is in default shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than Rs.50,000 but which may extend to Rs.5 lakhs, or both. If the annual return of a company is not filed continuously for three financial years, then any Director of such company would be disqualified and would not be eligible for appointment as a Director of any other company for a period of five years from the date on which the defaulting company failed to file annual returns
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