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MCA fined Company for missing CIN on board reports & AGM notices

Recently, the Ministry of Corporate Affairs (MCA) took stern action against a non-compliance problem many businesses frequently ignore in India. Shri Lal Mahal Infrastructure Private Limited failed to include its Corporate Identity Number (CIN) on its board report and Annual General Meeting (AGM) notification. This made the company subject to penalty fees. However, one needs to understand what this implies for other businesses and what the repercussions are.

What is CIN and its Importance?

Under the Companies Act, every company registered in India is given a unique identification number called a “Corporate Identity Number” (CIN). It is essential for:

  • The company’s legal identification
  • Ensuring openness in discussions and writing
  • Monitoring a company’s operations and compliance by authorities and other parties

Repercussions of Missing CIN on Board Reports and AGM Notices 

Missing CIN and Board Report_Blog_DataTracks

A corporation may experience problems with regulatory compliance if its Corporate Identification Number (CIN) is not present in records, reports, or filings. Corporate compliance and governance are essential for India’s Ministry of Corporate Affairs (MCA). The MCA may respond in the ways listed below if CIN is absent or improperly declared in corporate documents:

  • The MCA may send the corporation a notice or other correspondence outlining the non-compliance and urging correction. This notice can include a correction deadline and a list of the relevant regulations that call for CIN inclusion.
  • The MCA may apply penalties and fines if the non-compliance still needs to be resolved beyond the allotted time frame. The penalty amount might vary depending on the jurisdiction and the seriousness of the infringement.
  • The MCA may file a lawsuit against the business or its officers in more extreme situations or for persistent non-compliance. This may entail judicial proceedings, resulting in more severe penalties, such as fines and possible legal repercussions for the individuals accountable for the non-compliance.

The MCA’s action against Shri Lal Mahal Infrastructure Private Limited sends a strong message to all registered firms about the significance of adhering to the Firms Act’s requirements, no matter how insignificant they may seem. 

Businesses and their directors must diligently document their documentation to prevent fines and reputational hazards. They must check and ensure error-free documentation. Businesses can choose to appeal the order within a set time window.

Penalty for failing to mention CIN:

If a company fails to meet the requirements mentioned above, it can incur a penalty of INR 1,000 per day for the defaulting company and for every officer in default as long as the non-compliance persists. Nevertheless, the maximum penalty for this violation is capped at INR 1,00,000.

DataTracks: Accurate and Error-Free XBRL Report for MCA Filing 

Choosing a professional company like DataTracks for compliance reporting is necessary. Our team of professionals is knowledgeable about the most recent developments and legislation pertaining to company compliance. By including CIN and all other relevant information in the reports, we can lower the likelihood of mistakes and penalties.

Our team provides specialised solutions that are tailored in accordance with your unique demands. They evaluate the needs of your business and offer services, ensuring that you only pay for what you require.

Knowing that seasoned specialists are handling your filings can be reassuring. To discover how we can assist you, get in touch with us at +91 73050 74307 or email us at enquiry@datatracks.in

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