Non-filing of financial statements: Penalty order under Section 137(3) against DP Financial Corporation of India Limited
The Registrar of Companies, Cuttack has passed an adjudication order under Section 454 of the Companies Act, 2013 against DP FINANCIAL CORPORATION OF INDIA LIMITED for default in filing its financial statements for the financial year ended 31.03.2014. The order highlights prolonged non-compliance with Section 137(1) and imposition of maximum penalties under Section 137(3) on the company and its officers in default.
This write-up presents a structured summary of the adjudication order, the statutory provisions involved, the factual background, and the penalty consequences, along with key compliance lessons for companies and directors.
Background of adjudication proceedings
Appointment of Adjudicating Officer
The Ministry of Corporate Affairs, through Gazette Notification No. S.O. 698(E) dated 10/02/2026, appointed the Registrar of Companies, Cuttack as the Adjudicating Officer under Section 454 of the Companies Act, 2013. The appointment is in accordance with the Companies (Adjudication of Penalties) Rules, 2014, authorising the officer to determine penalties for non-compliance with various provisions of the Act, including Section 137.
Brief profile of the company and individuals involved
The adjudication relates to:
Company: DP FINANCIAL CORPORATION OF INDIA LIMITED
- CIN: U65999OR2010PLC012736
- Registered office: PLOT NO-1958/4083, FIRST FLOOR CHINTAMANISWAR AREA NA BHUBANESWAR KHORDHA ORISSA INDIA 751006
Officers in default / Noticees:
- DEBASIS PANDA
- PRAKASH KUMAR SETHI
- ALOK KUMAR SAHOO
These individuals were treated as officers in default for the purpose of compliance with Section 137 and were accordingly proceeded against for penalty under Section 137(3).
Statutory framework: Section 137(3)
Filing of financial statements
Section 137(1) obligates every company to file a copy of the financial statements, including all required documents, with the Registrar within the prescribed time after the Annual General Meeting.
Penalty provision under Section 137(3)
The order reproduces and relies upon the language of Section 137(3) of the Companies Act, 2013, which stipulates that:
If a company fails to file the copy of the financial statements under sub-section (1) or sub-section (2), as the case may be, before the expiry of the period specified therein, the company shall be liable to a penalty of ten thousand rupees and in case of continuing failure, with a further penalty of one hundred rupees for each day during which such failure continues, subject to a maximum of two lakh rupees, and the managing director and the Chief Financial Officer of the company, if any, and, in the absence of the managing director and the Chief Financial Officer, any other director who is charged by the Board with the responsibility of complying with the provisions of this section, and, in the absence of any such director, all the directors of the company, shall be shall be liable to a penalty of ten thousand rupees and in case of continuing failure, with further penalty of one hundred rupees for each day after the first during which such failure continues, subject to a maximum of fifty thousand rupees.
Accordingly:
The company faces:
- Base penalty: ₹10,000
- Continuing default: ₹100 per day
- Overall cap: ₹2,00,000
The managing director / CFO / responsible director(s) / all directors, as applicable, face:
- Base penalty: ₹10,000
- Continuing default: ₹100 per day after the first day of default
- Overall cap: ₹50,000 per person
The Adjudicating Officer applies this framework to compute penalties for the default period.
Factual matrix and nature of default
Non-filing of financial statements for FY 2013-14
Based on the records available on the MCA portal, the Adjudicating Officer observed that DP FINANCIAL CORPORATION OF INDIA LIMITED had not filed its financial statements for the financial year ended 31.03.2014.