The Registrar of Companies, Delhi, has imposed penalties on a company for failing to appoint an internal auditor within the mandated timeframe, emphasizing that lack of guidance cannot excuse such delays.
Penalty Imposed for Delay in Internal Auditor Appointment
The Registrar of Companies (ROC) Delhi has penalized a company and its directors for an extended delay of 1802 days in appointing an internal auditor, in violation of Section 138 of the Companies Act. The ROC's order makes clear that operational difficulties or lack of professional guidance do not constitute valid grounds for waiving penalties.
This ruling reinforces the statutory requirement for internal auditor appointments, which is crucial for ensuring financial transparency and accountability within corporate governance structures.
Practitioners should note the imperative of adhering to compliance timelines, as the absence of an internal auditor can attract significant penalties for companies and their leadership.
Citations
- Company Penalty Appeal (2026) ROC Delhi
