The Ministry of Corporate Affairs (MCA) recently took a stringent step against a non-compliance issue that many companies often overlook.
the Ministry of Corporate Affairs (MCA) has penalized Shri Lal Mahal Infrastructure Private Limited for missing its Corporate Identification Number (CIN) on its Board Report and AGM Notice for the financial years 2014-15 and 2015-16.
The MCA issued a show-cause notice to the company in December 2022, asking why it had not complied with the requirements of Section 12(3)(c) of the Companies Act, 2013. The section requires every company to mention its CIN on all its official documents, including the Board Report and AGM Notice.
The company did not submit a reply to the show-cause notice, and the MCA issued an order imposing a penalty of Rs. 2,000 on the company and Rs. 2,000 on each of its directors, Mukul Tyagi and Suman Tyagi.
The MCA order stated that the company’s failure to mention its CIN on its Board Report and AGM Notice was a serious violation of the Companies Act. The order also noted that the company had been penalized for a similar violation in the past.
The MCA order is a reminder to all companies of the importance of complying with the requirements of the Companies Act. Companies that fail to comply with the law may be subject to penalties.
Company Compliance in Dwarka Delhi
What is CIN and its Importance?
IN stands for Corporate Identification Number. It is a 21-digit alphanumeric code that is assigned to every company that is registered in India. The CIN is unique to each company and is used to identify and track the company’s activities.
The CIN is important for a number of reasons. First, it is required to be mentioned on all official documents issued by the company, such as invoices, contracts, and annual reports. Second, the CIN is used by the government to track the company’s compliance with various regulations. Third, the CIN can be used to verify the authenticity of a company’s documents.
Here are some of the importance of CIN:
- To identify and track companies: The CIN is a unique identifier for each company, which makes it easy to identify and track companies. This is important for a number of purposes, such as tax collection, regulatory compliance, and market research.
- To verify the authenticity of company documents: The CIN can be used to verify the authenticity of company documents, such as invoices and contracts. This is important to ensure that the documents are genuine and that the company is who it claims to be.
- To enforce regulations: The CIN can be used by the government to enforce regulations on companies. For example, the government can use the CIN to ensure that companies are paying their taxes and complying with other regulations.
- To facilitate trade: The CIN can be used to facilitate trade between companies. For example, banks can use the CIN to verify the identity of companies when opening accounts or issuing loans.
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