9911796707
TMI Blog2024 (3) TMI 1240X X X X Extracts X X X X X X X X Extracts X X X X ..... porting Authority (in short 'NFRA') by which the Appellant who is a CA, having ICAI Membership No. 240379, member of the Engagement Team for the statutory audit of Coffee Day Global Limited (in short 'Company') for the Financial Year 2018-19 has been held guilty of professional mis-conduct under Section 132(4) of the Companies Act, 2013 (in short 'Act') r/w Section 22 and clauses 5,6,7,8 & 9 of Part 1 of the second schedule of the Institute of Chartered Accountants of India Act (in short 'CA Act') and has been saddled with the penalty of Rs. 5 Lac and further debarred for a period of five 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 fun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pany Auditors for the financial year 2018-19 failed to meet the relevant requirements of the standards on auditing (SA) and provisions of the Act and also demonstrated a serious lack of competence, failed to evaluate their potential conflict of interest and failed to maintain their independence from the Company by having audit and non-audit relationships with a large number of Coffee Day Group Companies and the promoters' family members, made an attempt to deceive NFRA by adding more documents to as well as altering the documents in their audit file which amounted to tempering with the audit file, failed to exercise professional judgment & skepticism during audit of the transactions of Rs. 6,958.91 Cr. entered fraudulently with MACEL which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uments is attached herewith". He has then referred to Annexure A to contend that it contained the list of documents by which the charges of professional misconduct are proposed to be sustained but the said documents were not enclosed with the show cause notice. In order to substantiate his plea that the relevant documents were not given with the show cause notice, he has referred to email dated 24.04.2023 purported to have been sent by the Appellant to the Secretary, NFRA. It is pertinent to mention that this email was sent after the impugned order was passed on 12.04.2023. In this email, the Appellant has mentioned that he has received the order dated 12.04.2023 and requested for providing copy of the entire audit file including audit plan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and postal address were obtained from ICAI, which intimated the same email ID and postal address except the change of floor number. It is further alleged that on 19.07.2022, the Firm was again advised to submit the audit file. In response to which, the Firm on 21.07.2022 stated that they have shifted their office from 3rd floor to 1st floor in the same building and that the email dated 22.06.2022 had gone into the spam folder. The Firm provided some information and sought 30-day time for submission of the Audit File till 18.07.2022. The NFRA considering their request, allowed time upto 05.08.2022 and the firm submitted the audit file. After examining the audit file and material available on record, the NFRA had all reasons to believe that a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Financial Reporting Authority, 7th Floor, Hindustan Times House, Kasturba Gandhi Marg, New Delhi-110 001 Dear Sir, Sub : Reply to Show Cause Notice ("SCN") in the matter of M/s Coffee Day Global Ltd("CDGL") Financial Year 2018-19 Ref: Your Show Cause Notice ("SCN") vide letter No. NF- 23/14/202 dated 15th November 2022 I am in receipt of your above referred Show Cause Notice in connection with audit of M/s Coffee Day Global Limited, for the financial 2018-19, which was primarily issued to the Auditor of the company, M/s ASRMP & Co along with me to submit my response to the show cause notice by 15.12.2022 As per the SCN, the replies should be sent within 30days from the date of SCN or such extended period. As such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s working as engagement partner and shall knock the bottom of his case as now he cannot be allowed to take a different stand. The Appellant was required to file the reply to the show cause notice dated 15.11.2022 within a period of 30 days up to 15.12.2022. No such reply was filed within this period, rather, the Appellant sought extension of time of 45 days to submit his response vide his letter dated 14.12.2022. The NFRA considered the request made by the Appellant and on 03.01.2023 the period was extended till 29.01.2023. The Appellant during this period did not ask for any documents from the Respondent and rather relied upon the reply filed by the Firm which is apparent from the letter dated 30.01.2023, referred to hereinabove, in which ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
