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CS Professional · Compliance Management, Audit and Due Diligence · Signing and Certification

A practising company secretary certifies the annual return of Orion Ltd without verifying records and the return does not conform to Section 92 and its rules. What consequence does Section 92 provide for the certifying professional?

The practising company secretary is liable to a penalty of two lakh rupees. Section 92(6) imposes this where the return is certified otherwise than in conformity with the section or rules. The ten thousand rupee daily-accruing penalty applies to the company and officers for late filing.

  1. APenalty of ten thousand rupees with daily penalty of one hundred rupees
  2. BLiable to a penalty of two lakh rupeesCorrect
  3. CPenalty of fifty thousand rupees only
  4. DNo penalty; only the company and its officers are liable

Explanation

Section 92(6) makes a company secretary in practice who certifies the return otherwise than in conformity with the section or its rules liable to a penalty of two lakh rupees. The ten thousand rupee plus daily penalty in sub-section (5) relates to late filing by the company and its officers in default, not to certifiers.

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