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2024 (1) TMI 461 - NFRA - Companies LawProfessional Misconduct - Failure to maintain Audit Files and to co-operate with NFRA - sanctions and penalties - HELD THAT:- It is established that CA Anil Chauhan committed professional misconduct by not submitting the Audit Files and related documentation to NFRA and by not responding to the SCN issued by NFRA under Section 132 (4) of the Act - It is concluded that the following failures on the part of CA Anil Chauhan as contained under the Articles of Charges in the SCN stand established: i. Failure to exercise due diligence and being grossly negligent in the conduct of professional duties as defined by clause 7 of Part I of the Second Schedule of the Chartered Accountants Act 1949 because of the lapses and omissions. ii. Failure to supply the information called for, and non-compliance with the requests of NFRA, as defined in clause 2 of Part-III of First Schedule of The Chartered Accountants Act, 1949 because the EP did not co-operate with NFRA. Considering the aforementioned proved professional misconduct by the EP and considering the nature of the violations, in exercise of powers under section 132(4)(c) of the Companies Act, 2013, it is ordered that: i. Imposition of a monetary penalty of Rs Twenty Lakhs on the EP, CA Anil Chauhan, proprietor of M/s Anil Chauhan & Associates. ii. Debarment of CA Anil Chauhan and the audit firm M/s Anil Chauhan & Associates (FRN: 0140786W), for Ten Years from being appointed as an auditor or internal auditor or from undertaking any audit in respect of financial statements or internal audit of the functions and activities of any company or body corporate. This order will become effective after 30 days from the date of issue of this Order.
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