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

CS Rahul, a practising company secretary, certified the annual return of Lotus Foods Ltd, a listed company, although he knew it did not conform to the requirements of section 92 and the rules. What is the consequence for him under section 92(6)?

He is liable to a penalty of two lakh rupees. Section 92(6) imposes this on a company secretary in practice who certifies the annual return otherwise than in conformity with the section or rules. The ten thousand rupee penalty concerns the company's late filing, not defective certification.

  1. APenalty of two lakh rupeesCorrect
  2. BPenalty of ten thousand rupees plus one hundred rupees per day
  3. CPenalty of fifty thousand rupees
  4. DPenalty of five lakh rupees

Explanation

Section 92(6), as amended, makes a practising CS who certifies the return otherwise than in conformity liable to a penalty of two lakh rupees. Ten thousand plus daily amounts relates to the company's late filing under section 92(5). Five lakh rupees was the earlier figure, since replaced.

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