EXAMINATION
OF BALANCE SHEETS BY ROCs
GENERAL
CIRCULAR NO. 37/2012, DATED 6-11-2012
1. It is
considered expedient to issue the following circular for general information.
2. Every company registered under the provisions of the
Companies Act, 1956 is required to file its balance sheet annually with the
office of the Registrar of Companies within whose jurisdiction the registered
office of the company is located. Presently, there are more than 8 lakh
companies registered with various offices of the RoCs located all over the
country. Balance sheets of all the companies who carry out the filing are
available for public inspection on the portal of this Ministry
(http://www.mca.gov.in). The underlying idea behind the filing of balance
sheets and other documents which require similar filings is to publicly
disclose information which reflects various aspects of the working of a company
so that the company's public accountability is maintained. It is neither
intended nor feasible for the Registrars to scrutinize or verify the contents
of filing except on a random basis. Companies and its Directors and officials
are liable to be penalized for any incorrect, false or misleading information
that such filing disclose. In the following cases, however, the Registrars
routinely scrutinize balance sheets:
(i)
of companies against whom there are complaints;
(ii) of
companies which have raised money from the public through public issue of
shares/debentures etc.;
(iii) in
cases where the auditors have qualified their reports.
(iv)
Default in payment of matured deposits and debentures.
(v)
References received from other regulatory authorities pointing out
violations/irregularities calling for action under the Companies Act, 1956.
3. After the scrutiny suitable steps are initiated wherever
necessary to obtain explanation and clarification and to institute inspections,
investigations and prosecutions wherever warranted.
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