ROC imposed penalty on auditors for non-disclosure of required information in financial statements

 

ROC levied penalty of Rs.1.50 lakhs (@ Rs.10,000 for each default per year u/s 450) on auditors for non-disclosure of required information in financial statements from 2015-16 to 2019-20:

–         Related party transactions as per AS-18

–         Trade payables to micro and small enterprises separately

–         Nature of short term loans and advances

–         Income & expenditure exceeding 1% of revenue or Rs.1 lac, whichever is higher

Penalty has been imposed even after 7 years of filing financial statements due to no limitation period prescribed in the Companies Act for adjudication of penalties.

 

The copy of the order is as under:

Penalty_on_auditors_for_non_disclosure_2015_16_to__240218_152833