NFRA debars CA Rajiv Bengali for 5 years and imposed penalty of Rs.5 Lakhs


CA Debarred: NFRA debars CA Rajiv Bengali for 5 years and imposed penalty of Rs.5 Lakhs

The Nationwide Monetary Reporting Authority (NFRA) has issued an order relating to skilled misconduct by CA Rajiv Bengali of M/s Subramaniam Bengali & Associates, Engagement Accomplice for Statutory Audit of Trilogic Digital Media Restricted (TDML) for the Monetary 12 months 2016-17, in accordance with part 132(4) of the Corporations Act 2013 (the Act).

Following are a couple of of probably the most vital errors made through the investigation {of professional} misconduct:

1. Even supposing the Money Move Assertion was not included in TDML’s monetary statements, the auditor had erroneously claimed that it had been audited. The Auditor had additionally made an effort to deceive NFRA by fabricating a Money Move Assertion.

2. When the auditor issued an unaltered audit opinion on monetary statements that didn’t precisely and pretty depict the corporate’s situation of affairs, this constituted grave negligence.

3. Regardless of adverse indicators like a drop in income from operations from Rs 51 crores to Rs 17.06 crores, TDML struggling a lack of Rs 54.37 crores, inflicting a decline in internet price from Rs 58.89 crores to Rs 4.52 crores, and a drop in stock from Rs 12.71 crores to Nil, the auditor was negligent in evaluating the appropriateness of administration’s assumption of the corporate being a “going concern.”

4. A complete of Rs 71.43 crores in bills, or 54.50% of all bills, have been recognised by TDML as Different Miscellaneous Expenditure of Rs 24.06 crores and written off as Sundry Balances of Rs 14.87 crores. These prices have been 3041% larger than comparable prices from the earlier yr, which got here to Rs 1.28 crores. Regardless of the existence of such irregular/uncommon transactions, the auditor failed to use due diligence and retain skilled scepticism in the direction of the chance of considerable misstatements owing to fraud.

5. Deferred Tax Property (DTA) of Rs. 11.96 crores have been recognised by TDML despite the fact that there was no assurance that there could be sufficient future taxable revenue to offset them. The auditor uncared for to notice the improper recognition of DTA.

6. Because of the auditor’s quite a few Requirements on Auditing violations, the audit of a listed enterprise was performed in a hasty and careless method.

7. Six Accounting Requirements’ compliance was not verified by the auditor.

8. Following the Demonetization in November 2016, TDML was required to reveal specifics of transactions involving Specified Financial institution Notes. Nevertheless, they didn’t adjust to this requirement. Much like this, TDML withheld sure info on Associated Social gathering particulars and transactions. To be able to guarantee compliance with essential disclosure necessities set forth by the Act, the auditor acted with egregious negligence.

9. The auditor made a false declare relating to TDML’s registration as a non-banking finance enterprise beneath part 45 IA of the RBI Act 1934. TDML is a media and content material syndication firm.

To Learn Official Order Obtain PDF Given Beneath:

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