MCA filings - Penalties for late filings.

Section 403 of the Companies Act, 2013 is a wake up call for companies in India. Not any more they can afford to relax and file documents months and years after they are supposed to do so.

Section 403(1) provides that documents should be submitted, filed, registered or recorded within the time specified in the relevant section for the same. For eg. most of the forms require to be filed within 30 days of the event, save for a few provisions such as Auditors appointment within 15 days, annual return within 60 days and charge registration/ modification within 300 days of the event.

The first proviso to section 403(1) provides for additional time within which the documents can be filed by paying additional filing fees. This additional period is 270 days beyond the original period of filing. Therefore in most cases a 300 days period is given for filing the document by paying the normal fees and additional filing fees.

The second proviso to section 403(1) provides that such documents can be filed beyond the said 300 days but it says "without prejudice to any other legal action or liability under the Act"

Section 403(2) provides that where the company fails to submit/ deliver the documents within the time specified including the additional time given, the company and every officers of the company shall be liable for penalty or punishment provided under the Act. This is apart from the fees and additional filing fees payable by the company for filing the document.

The various sections give different penalties for delayed filing beyond the normal period and additional period given thereunder, for eg.

1) delayed filing of annual return under section 92 is liable for a penalty of minimum Rs.50,000 but which may extend to Rs.5 lakhs and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than Rs.50,000/- but which may extend to Rs.5 lakhs or with both;
2) for failure to file documents required under section - minimum penalty is Rs.5 lakhs but which may extend to Rs.25 lakhs for the company and every officer of the company who is in default shall be punishable with fine which shall be minimum Rs.1 lakh but which may extend to Rs.5 lakhs;
3) Audited financial statements under section 137 - Fine of Rs.1000/- per day during which the failure continues but which shall not be more than Rs.10 lakhs and MD and CFO (or in the absence of MD/ CFO, any director who is charged by the Board of complying with this section, or in the absence of any such director, all directors of the company) shall be punishable with imprisonment for a term which may extend to six months or with fine, which shall not be less than Rs.1 lakh but which may extend to Rs.5 lakhs or both;

Apparently the system will not allow filings to take place after the period stipulated in section 403 unless the company applies for a an application for condonation of delay with the prescribed authorities which in this case is the REgistar of Companies of the respective jurisdiction.

Therefore Compliance is the Need of the Hour for every company in India. Gone are the days when the companies can sleep for years on end without doing any filings whatever.

Documents reqd for import/ export

The Director General of Foreign Trade in the Ministry of Commerce & Industry has specified the followed documents as mandatory requirement for export and import of goods into India. From a huge list of documents they have specified only three documents for import and export.

The Govt. has issued notification dated 12th March, 2015 in this regard. Gist of the notification reads as under:

2. Para2.53: The following mandatory documents are prescribed for exports and imports of goods
from/into India:

(a) Mandatory documents required for export of goods from India:
1. Bill of Lading/Airway Bill
2. Commercial Invoice cum Packing List*
3. Shipping Bill/Bill of Export

(b) Mandatory documents required for import of goods into India
1. Bill of Lading/Airway Bill
2. Commercial Invoice cum Packing List*
3. Bill of Entry

[Note: *(i) As per CBEC Circular No. 01/15-Customs dated 12/01/2015.
(ii) Separate Commercial Invoice and Packing List would also be accepted.]

(c) For export or import of specific goods or category of goods, which are subject to any
restrictions/policy conditions or require NOC or product specific compliances under any
statute, the regulatory authority concerned may notify additional documents for purposes of
export or import.

(d) In specific cases of export or import, the regulatory authority concerned may
electronically or in writing seek additional documents or information, as deemed necessary to ensure legal compliance.

This notification will come into effect from 1st April, 2015. 

Badlapur -

Sriram Raghavan made two excellent movies in Ek Haseena Thi and Johnny Gaddar, both of them taut with good scripts, fast paced, never a dull moment. But he slips in Badlapur which has a weak script, confused ending, weak acting, all in all a big let down from the man.

Raghu's wife and kid are unfortunately got caught in a bank robbery escape attempt and both of them get killed but the distraught man plots revenge. The real killer is caught but he keeps playing the cops around like one of Robert de Niro characters. Jump forward 15 years, revenge still simmers on his mind but here the plot then starts getting wayward without any real meaning. There are more killings, threats galore but it ends up on a totally confused note. The Dhawan guy goes through the entire movie with a single expression and overall acting is tepid to say the least. The plot does'nt rise above a certain level but people like Sriram Raghavan should not accept such hackneyed scripts for direction.