Skip to content

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

Ganga Foods Ltd failed to file its financial statements with the Registrar on time. The adjudicating officer issued a notice on 10 June. The company filed the statements on 25 June. Can a penalty be imposed for this default?

No penalty can be imposed. For default in filing financial statements, if the default is rectified before or within thirty days of the adjudicating officer's notice, no penalty is imposed and the proceedings are deemed concluded. Filing fifteen days after the notice qualifies.

  1. AYes, because the filing was made only after the notice was issued
  2. BYes, but only half the penalty applies
  3. CNo, because rectification within thirty days of the notice ends proceedings for this defaultCorrect
  4. DNo, but only if the officer in default pays the filing fee twice

Explanation

The proviso to section 454(3) covers non-compliance of section 137(1) or (2) (financial statement filing). If rectified before or within thirty days of the notice, no penalty is imposed and proceedings are deemed concluded. Filing on 25 June is within thirty days of 10 June, so no penalty.

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