Adjudication order for violation of section 177 of Companies Act, 2013 in the matter of M/s. A-One Steels LTD

F. No:9/09/ADJ/SEC.177 of 2013/ROC(B)/RD(SER)/2025 BEFORE THE REGIONAL DIRECTOR, SOUTH EAST REGION MINISTRY OF CORPORATE AFFAIRS, HYDERABAD IN THE MATTER OF COMPANIES ACT, 2013

IN THE MATTER OF A-ONE STEELS INDIA LIMITED

• Pas:A One A-ONEHouse, STEELSNo. 326,LIMITEDCQAL Layout, Ward No.08, Shankar Nagar, Bangalore, Karnataka — 560092.

  • 2.Mr. Sunil Jallan Flat No 753, Tower 7, 5 Floor, Unit-3 Embassy Lake Terraces, Kirloskar Business Park, Bangalore, Karnataka — 560024.

  • 3.Ms. Pooja Sara Nagaraja G 401, 4 Floor, G Block, Rohan Upavan Apartment, Kyalasanahalli, Bangalore, Karnataka —- 560077.

bitettrsseseeeseeeees ADPEHants

Date of hearing: 19.05.2025 Present: Mr. G.M. Ganapathi, PCS

ORDER

1. M/s. A-ONE STEELS INDIA LIMITED has filed an appeal under section 454(5) of the Companies Act, 2013 along with the above appellants in e-form ADJ vide SRN AB2963399 dated 14.03.2025 against the adjudication order issued vide F.No. ROCB/Adj.454-177/A-One Steel/Co.No.063439/2025 dated 23.01.2025 under section 454(5) of the Companies Act, 2013 read with sections 177 of the Companies Act, 2013 passed by the Registrar of Companies, Bangalore.

2. Registrar of Companies in his Adjudication order dt. 23.01.2025 has stated after considering the facts and aati. es of the case that the company and x ete: 8.8 . . of its directors are liable to pfeobi ae pdyerve under Sections 178(8) the Act for violation of sectide 7 Heat the"d ompanies Act, 2013. Further, Page 1 of3

• Registrar of Companies, Bangalore passed an order dated 23.012025 after hearing the authorized representative Mr. Radhesh Bhat on 17.12.2024 by fixing penalties as under:

• S.No. | Particulars Period of default Penalty

• i ee neat frarreae [ores|

• 2 Sunil Kumar 1,00,000 |1,00,000 | 1,00,000 3,00,000

• ie ee ee io3 esePooja Sara 1,00,000 | 1,00,000 1,00,000 | 3,00,000

| Particulars Period of default Penalty

• i ee neat frarreae [ores|

• 2 Sunil Kumar 1,00,000 |1,00,000 | 1,00,000 3,00,000

• ie ee ee io3 esePooja Sara 1,00,000 | 1,00,000 1,00,000 | 3,00,000

• 3. The appeal was heard on 19.05.2025. Mr. G.M. Ganapathi, Practicing Company Secretary/Authorised representative has attended the personal hearing on behalf of the applicants on 19.05.2025 before the Regional Director. The authorized representative stated that AO has erred in passing order for violation of section 177(9) for the years 2016-17 to 2018-19 whereas the violation took place only in 2018-19, which is also compoundable.

• _4, The appellant desires to go for compounding of the violation for the year 2018-19. Since the section was amended in the year 2020 to bring the same under the penalty regime and the violation relates to prior period, the appellant is within rights to file compounding application. With regard to the violation for the years 2016-17 and 2017-18, the order of the AO/ROC itself states that it was not mandatory for the Company to have a vigil mechanism, therefore, there is no violation.

5. In view of the above, the order of the AO is set aside, and the company is directed to file compounding application within 30 days thereof. In case the company fails to file the compounding application ROC shall file prosecution.

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Issued on this Se day of September, 2025.

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Issued on this Se day of September, 2025.

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Copy for information and necessary action to:

1. Registrar of Companies, Ministry of Corporate Affairs, Bangalore, Karnataka.

2. The Joint Secretary, E-Governance Cell, Ministry of Corporate Affairs, New Delhi.

SA [—

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