TMI Blog2017 (7) TMI 222X X X X Extracts X X X X X X X X Extracts X X X X ..... tual error with reference to Authorised, Issued and Subscribed Capital of any Company. Therefore, the Balance Sheet as at 31.03.2009 is not in accordance with Section 211(1) of Companies Act 1956 in as much as “True & Fair view” is not depicted in the Balance Sheet, thereby resulting in disclosing false particulars of issued capital. Further, the applicants have also failed to exercise / exhibit due regard and failed to take reasonable steps while preparing the Balance Sheet for the year 2008-09. Therefore, the applicants submission that by inadvertent, default has not caused any prejudice to Members (or) Creditors, not to affect public interest, no harm is caused to public interest etc. does not hold good in the instant facts of the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he case as mentioned in the Application are as follows: a) The Applicant Company Jagati Publications Limited was originally incorporated as Private Limited Company on 14.11.2006 and was converted into Public Limited Company on 12.01.2009 under the Companies Act, 1956 vide CIN U22212TG2006PLC051651 having its registered office at 6-3-249/1, Sakshi Towers, Raod No.1, Banjara Hills, Hyderabad, Telangana - 500 034. b). The present Authorised Share Capital of the Applicant Company is ₹ 1,20,00,00,000/- (Rupees One hundred Twenty Crores Only) divided into 12,00,00,000 (Twelve Crores) Equity shares of ₹ 10/- each and the present Paid up Share Capital is ₹ 1,06,55,84,810/- (Rupees One Hundred Six Crores Fifty Five Lakhs Eigh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or preparation of balance sheet under the heading Notes at the end of the part. f) The Balance Sheet as at 31.3.2009 prepared by the company disclosed the Issued Capital as ₹ 84,41,80,000/- (Rupees Eighty Four Crores Forty One Lakhs Eighty Thousand only) falsely instead of disclosing the issued capital as ₹ 100,00,00,000/- (One Hundred Crores only) thereby resulting in disclosing false particulars of issued capital in the Balance Sheet as at 31.3.2009. This has resulted in violation of Section 211(1) of the Companies Act, 1956 read with Schedule VI of the Companies Act, 1956. g) For the allegations raised in the preliminary Findings Letter, the Company replied to Office of the Regional Director, South East Region, Hydera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... end to ten thousand rupees, or with both. k) This is a fit case for grant of relief by composition of offence and the Bench may kindly take a convenient view and may levy the compounding fees reasonably. 4. Registrar of Companies, Hyderabad, submitted his report vide No. RAP TG/Jagati/621A/STA/2016/Sec211/(1)/938 dated 25.05.2016 stating that the present application was made based on the preliminary enquiry report issued by the Inspecting Officer. The applicants have not clearly mentioned how the offence was made good. Hence the applicants may be put to strict proof of the same. a. It is stated that on 23.02.2016, the Applicants have submitted an application under Section 621A of the Companies Act, 1956 for compounding of offence u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as already discussed by this Bench in detail in the matter of Cambridge Technology Enterprises Ltd., In re [2017] 77 taxmann.com 270/139 SCL 312 (NCLT - Hyd.). Therefore, to avoid repetition of the stand already taken by this Tribunal, we deem fit not to elaborate the same in this order. 7. The Authorised representative of Jagati Publications Limited, submitted a letter subsequent to the hearing held on 1st March, 2017 and the same has been taken on record. Upon perusal of the aforesaid letter it is noted that the authorised share capital and issued capital of the company for the year ending 31.03.2009 was the same amount of ₹ 100 Crores whereas the subscribed and paid up capital was ₹ 84,41,79,940/-.(Rupees Eighty Four Crore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enerally, Audited Balance Sheet will depict correct /factual amount under various heads and especially there cannot be any factual error with reference to Authorised, Issued and Subscribed Capital of any Company. Therefore, the Balance Sheet as at 31.03.2009 is not in accordance with Section 211(1) of Companies Act 1956 in as much as True Fair view is not depicted in the Balance Sheet, thereby resulting in disclosing false particulars of issued capital. Further, the applicants have also failed to exercise / exhibit due regard and failed to take reasonable steps while preparing the Balance Sheet for the year 2008-09. Therefore, the applicants submission that by inadvertent, default has not caused any prejudice to Members (or) Creditor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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