Compounding order under Section 441 of the Companies Act, 2013 for violation of Section 148 of the Companies Act, 2013 in the matter of M/s.Swastik Cooper Private Limited

11 SEP 2018 Application No. RD (NWR)/441/Sec. 148/49/2023-24 /Qlo_’) T Ang BEFORE THE REGIONAL DIRECTOR NORTH-WESTERN REGION MINISTRY OF CORPORATE AFFAIRS, AHMEDABAD IN THE MATTER OF THE COMPANIES ACT, 2013

AND- IN THE MATTER OF Swastik Cooper Private Ltd E-1/1274, Phase-Ill, Sitapura Industrial Area, Jaipur, Rajashthan.

• AND - IN THE MATTER OF APPLICATION UNDER SECTION 441 OF THE COMPANIES ACT, 2013 FOR COMPOUNDING OF OFFENCE COMMITED UNDER SECTION 148(2) and 148(6) OF THE COMPANIES ACT, 2013.
• AND - IN THE MATTER OF

Swastik Copper Private Ltd, Company 2. ShriSandeep Jain Director 3. Smt. Indra Jain, Director ................ Applicants Date of hearing: - 27.07.2023. Present: - 1. Shri Mahendra Prakash Khandelwal, Practicing Company Secretary, authorized representative of the applicants. 2. Shri R. S. Meena, Joint Director. ORDER An application under Section 441 of the Companies Act, 2013 (here-in- after called as “Act”) for compounding of offence committed under Section 148(2) and 148(6) of the Companies Act, 2013 has been filed by the above named applicants vide SRN F62372834 dated with the 0/o the Registrar of Companies, Jaipur and thereafter, the same was forwarded along with his report thereon dated 18.07.2023 to this Directorate i.e. O/o the Regional Director (NWR), Ahmedabad, for consideration. 1. (a) As per compounding application it is observed that the Cost Audit Branch of the Ministry has issued Show Cause Notice to the applicants vide 52/37/CAB/2016 dated 09.12.2016 stating that as per turnover and product codes information contained in e-Form AOC-4 of the applicant company for the financial year 2014-15, appointment of Cost Auditor and conducting cost audit P

report for the same is mandatory for the applicant company for the financial year 2014-14 as per section 148 (2) of the Companies Act, 2013 read with Rule 6 of the Companies (Cost Records and Audit) Rules, 2014. (i) However, the Cost auditor for the F.Y. 2014-15 should be appointed on or before 30.06.2014. But the company has appointed the auditor on 26.03.2015 vide SRN 536927754 i.e delayed by 268 days. (i) For filing of Cost Audit report for the F.Y. 2014-15, the company has filed its on 08.03.2017 vide SRN G37605375 delayed by 531 days. 2. It is further observed from the compounding application that the Cost Audit Branch of the Ministry has also issued Show Cause Notice to the applicants vide 52/15/CAB/2018 dated 28.03.2018 stating that Cost audit report for the F.Y. 2015-16 has not been filed within prescribed time period as required under the provisions of section 148(6) of the Companies Act, 2013. The Cost audit report should be filed for the F.Y. 2015-16 on or before 20.10.2016. However, the company has filed its Cost audit report on 29.12.2017 vide SRN G72095524 i.e. delayed by 434 Days. (b) The ROC has further reported that for the violation of section 148 (6) of the Companies Act, 2013 fine provided in section 148 (8) of the Companies Act, 2013 and as per provision of section 148 (8) of the Companies Act, 2013, “ifa company fails to comply with the provision of the section 148, the company and every officer of the company who is in default shall be punishable in the manner as provided in subsection (1) of the section 147 (the company shall be punishable with fine which shall not be less than twenty —five thousand rupees but which may extend to five lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to one year or with fine which shall not be less than ten thousand rupees but which may extend to one lakh rupees or with both) .” 3. During the hearing, Mr. Mahendra Prakash Khandelwal, Practicing Company Secretary and authorized representative of the applicants reiterated submissions made in the application by the applicants. He has further stated that the defaults have already been made good. 4. Shri R. S. Meena, Joint Director stated that the instant application has been forwarded by the O/o ROC, Jaipur vide letter dated 18.07.2023. After consideration of the submissions made by the applicants in their application and oral submissions made by Mr. Mahendra Prakash Khandelwal, Practicing Company Secretary and authorized representative of the applicants, report submitted by the O/o ROC, Jaipur and also submission made by ShriR. S. Meena, Joint Director and keeping in mind all the relevant facts and circumstances, it is observed that the applicants have committed default under £

Section 148(2) and 148(6) of the Companies Act, 2013. After taking into consideration all the relevant facts of the case, the aforesaid defaults are compounded on payment of compounding fees as under: (A) For the F.Y. 2014-15, Rs. 25,000/~ imposed on company and Rs. 10,000/- each imposed on Director for violation of Cost Auditor appointment and further the same fine again imposed for violation of Cost Auditor Report. (B)For the F.Y. 2015-16, Rs. 50,000/~ imposed on company and Rs. 20,000/- imposed on each director for violation of under section 148(6) i.e. filing of Cost Auditor report to be paid. 8. The compounding fee has been paid by the applicants as per the details given below: - (A) for the F. Y. 2014-15 sl. | Name of the Applicant | Fine Fine Amount SRN & No. u/s. u/s. (Rs.) Date 148(2) | 148(6) 01. Swastik Copper Private | 25,000 | 25,000 50,000/- | X48100523 Ltd, Company 02. Shri Sandeep Jain | 10,000 | 10,000 20,000/~ | X48103055 Director 03. Smt. Indra Jain, | 10,000 | 10,000 | 20,000/~ |X48104855 Director (8) for the F. Y. 2015-16 sl. Name of the Applicant Fine Amount SRN & Date No. u/s. (Rs.) 01. Swastik Copper Private 50,000 | 50,000/- |X48101844 Ltd, Company 02. | Shri Sandeep Jain Director | 20,000 20,000/~ | X48103501 03. | Smt. Indra Jain, Director 20,000 | 20,000/- | X48103881

The application stands disposed of with these orders. Ko REGIONAL DIRECTOR NWR, AHMEDABAD To,

1. Swastik Copper Private Ltd, Company E-1/1274, Phase-lll, Sitapur Industrial Area, Jaipur, Rajasthan.
2. Shri Sandeep Jain Director Flat No. 611, Fountain Squire, B/h, Gold Sukh, Jawahar Circle, Malviya Nagar, Jaipur-302017.
3. Smt. Indra Jain, Director 1267, Sagar Colony, VPO, Palana, Tal. Pali Palna, Pali, Rajasthan -306116.
4. Registrar of Companies, Jaipur.... with reference to the letter No. ROC- 5 JOINTDIRECTOR @ €~ IPR/441/CA2013/550 dated 18.07.2023.