Skip to content

CS Professional · Compliance Management, Audit and Due Diligence · Non-Compliances, Penalties and Adjudications

A company secretary in practice certifies the annual return of Tara Textiles Limited, a small company, otherwise than as required by section 92. The penalty specified in section 92(6) is Rs 2,00,000. Is the concession in section 446B available to reduce this penalty?

Yes, the concession applies. Section 446B extends to any other person in respect of a small company, such as the certifying practising company secretary. The penalty may not exceed one-half of Rs 2 lakh, and in any case not more than Rs 1 lakh.

  1. ANo, because section 446B covers only the company and not any other person
  2. BNo, because section 446B applies only to listed companies
  3. CYes, because section 446B applies to any other person in respect of such a company, with a cap of Rs 1 lakhCorrect
  4. DYes, but the penalty is reduced to a maximum of Rs 2 lakh

Explanation

Section 446B covers the company, its officer in default, or any other person in respect of a small company. For a person other than the company, the penalty is not more than one-half, capped at Rs 1 lakh. Half of Rs 2 lakh is Rs 1 lakh.

Did you get it right without looking?

One question tells you little. A timed set on Non-Compliances, Penalties and Adjudications shows your real accuracy, how long you take and where you lose marks.

Practise Non-Compliances, Penalties and AdjudicationsFree diagnostic mock

More Non-Compliances, Penalties and Adjudications questions