M/s Omega Bright Steel Private Limited vs Registrar Of Companies Nct Of Delhi And Haryana

Bachu Venkat Balaram Das, Member (Judicial)

The Applicant has filed this petition under the provisions of Section 131 of the Companies Act, 2013 ("The Act") for voluntary revision of financial statements of the Applicant Company, M/s. Omega Bright Steel Private Limited for the Financial Year 2020-2021.

The brief facts averred by the Applicant for filing the present Petition are as follows:

i. That the Petitioner Company was incorporated under the provisions of the erstwhile Companies Act, 1956 on 26.12.1969. The Company is engaged in the business of Steel Melting and Casting of Billets.

ii. That the Applicant Company is required to prepare its books of accounts as per the provisions of Section 129 complying with the provisions of Section 133 (Accounting Standards) read with Schedule III of the Companies Act, 2013 and read with Companies (Accounts) Rules, 2014, Companies (Accounting Standards) Rules, 2006 and Companies (Indian Accounting Standards) Rules 2015. Applicability of the IND AS on companies is dealt by Rule 4 of the Companies (Indian Accounting Standards) Rules, 2015 wherein all companies w.e.f. .1.04.2017 having net worth greater than or equal to Rs. 250 crores but less than Rs. 500 crores in the preceding financial year shall mandatorily be required to prepare and submit the financials of the company as per the Indian Accounting Standards prescribed by the Ministry of Corporate Affairs, New Delhi. But unfortunately, the Applicant Company was unable to prepare and submit the financials as per IND-AS even though the net worth of the Applicant Company in the previous financial year 2019-2020 was Rs.254,70,63,931/- i.e. greater than the threshold of Rs. 250 crores as prescribed under Companies (Indian Accounting Standards) Rules 2015 by NFRA.

iii. That the Board of Directors in their meeting held on 21.03.2022 passed a resolution for voluntary revision of financial statements of the Applicant Company for the Financial Year 2020-2021.

The Respondent was set ex-parte vide order dated 18.05.2023.

The Applicant has filed an affidavit dated 21.07.2023 stating that the tax liability will not change after the acceptance of the modified documents.

We have gone through the submissions of the Applicant and perused the material on record. It is noted that the Applicant has proposed the rectification in the Financial Statement for the Financial Year 2020-2021 due to applicability of IND-AS in compliance of Rule 4 of the Companies (Indian Accounting Standards) Rules, 2015. The same has been duly approved by the Board of the Company on 21.03.2022. It is noted that notices have been issued to the Registrar of Company and the Income Tax Department. However, the RoC was set ex-parte vide order dated 18.05.2023. Further, the Applicant has filed an affidavit dated 21.07.2023 stating that the tax liability will not change after the acceptance of the modified documents. Hence, the present Application is in compliance with sub-section 1 and 2 of Section 131 of Companies Act, 2013. Hence, we allow this present application.

The revised financial statement shall be filed with the concerned Registrar of Companies, NCT of Delhi within 30 days and who shall take the same on record for the financial year 2020-2021.

It is clarified that, if any, non-compliance apart from the subject matter of this application are done by the Applicant Company, this order will not come in the way of proceeding initiated by the concerned Authorities.

Accordingly, instant Petition is allowed and disposed off.