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

CS Rohan Mehta, a company secretary in practice, certified the annual return of Kaveri Textiles Ltd, a listed company, without verifying the shareholding details. The certification was later found not to conform to the requirements of Section 92 or its rules. What is the consequence for Rohan under the Act?

Rohan is liable to a penalty of two lakh rupees. Section 92(6) penalises a company secretary in practice who certifies the annual return otherwise than in conformity with the section or its rules. The late-filing penalty applies to the company and its officers, not to the certifying professional.

  1. AHe is liable to a penalty of two lakh rupeesCorrect
  2. BHe is liable to a penalty of ten thousand rupees plus one hundred rupees per day
  3. CHe is liable to a penalty of fifty thousand rupees only
  4. DHe faces no penalty under Section 92, because only the company and its officers are penalised

Explanation

Section 92(6) provides that a company secretary in practice who certifies the annual return otherwise than in conformity with the section or the rules is liable to a penalty of two lakh rupees. The ten thousand rupees plus daily penalty in option B is the late-filing penalty on the company and its officers under sub-section (5), a different default.

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