The Registrar of Companies (ROC) has levied a penalty of Rs. 7 Lakh on Resonance Eduventures Limited and its directors due to the non-formation of an Audit Committee.
In a proactive move, the company, represented by Sh. Ram Kishan Verma, MD & CEO, voluntarily brought the violation to the attention of the ROC. The application for adjudication highlighted the company’s failure to establish an audit committee, as mandated by Section 177 of the Companies Act, 2013, read with Rule 6 of the Companies (Meetings of Board and its Powers) Rules, 2014, during the period from 19.11.2019 to 15.04.2021.
An adjudication notice was issued by this office on 28.03.2023, citing the violation of Section 177 of the Companies Act, 2013, in conjunction with Rule 6 of the Companies (Meetings of Board and its Powers) Rules, 2014. The violation is punishable under Section 178(8) of the Companies Act 2013. The Company, along with its Directors/Officers in Default/KMP, was given an opportunity to present its case on 11.04.2023.
During the hearing, Sh. Akshit Kumar Jangid, FCS, represented the Company and Parties No. 01 to 03. He acknowledged the violation and disclosed that the company had constituted the audit committee effective 15.04.2021. The plea was made to impose the minimum penalty for the offense of not establishing an audit committee. The appointment and cessation of Directors were duly recorded on the MCA portal.
Based on the presented facts, it is evident that Resonance Eduventures Limited, along with its directors/officers in default/KMP, failed to comply with the provisions of Section 177 of the Companies Act, 2013, read with Rule 6 of Companies (Meetings of Board and its Powers) Rules, 2014, from 19.11.2019 to 15.04.2021. Consequently, they are liable for penal action under Section 178(8) of the Companies Act, 2013, read with Section 454 of the Companies Act, 2013.
Exercising the powers conferred by Section 454 of the Companies Act, 2013, the undersigned has issued an adjudication order, imposing a penalty of Rs. 700,000 on Resonance Eduventures Limited, Shri Ram Kishan Verma (MD & CEO), and Shri Abhinav Gautam (CS). The penalty breaks down to Rs. 500,000 on the company and Rs. 100,000 on each Officer in default/KMP, namely Shri Ram Kishan Verma (MD and CEO) and Shri Abhinav Gautam (CS).
The imposed penalties are to be paid within 90 days from the receipt of the order via an appropriate challan on the MCA Portal. It is emphasized that the penalty on the directors should be settled from their personal accounts.
Failure to pay the penalty within the stipulated period will result in legal action against the company and its directors/officers in default, as per Section 454(8) of the Companies Act 2013.
