NFRA bans 2 entities for professional misconduct in Seya Industries matter
Seya Industries Ltd. Anil Chauhan and his audit firm Anil Chauhan & Associates have been barred for 10 years from undertaking any audit in respect of financial statements or internal audit of the functions and activities of any company or body corporate, according to an order issued on January 5.
Chauhan is the proprietor of audit firm Anil Chauhan & Associates and the Engagement Partner (EP) for the statutory audit of Seya Industries for financial years 2018-19 and 2019-20.
The ruling came after NFRA received information from Sebi in March 2023 about non-compliance with the accounting standards by the company, misreporting in the financial statements and non-cooperation by Anil Chauhan & Associates.
Thereafter, NFRA initiated an investigation into the professional conduct of statutory auditors of Seya Industries Ltd, Mumbai for 2018-19 and 2019-20 periods.
NFRA had asked Chauhan to provide the audit files and some other information related to the company.
However, despite repeated reminders, he did not submit the requisite documents and information, as per the order.
The regulator also found Chauhan guilty of professional misconduct as he failed to comply with the requirements of provisions of the Act, Code of Ethics (2009), Standards on Auditing (SA), and gross negligence in maintaining the audit files.
In a separate order issued on January 8, NFRA slapped a fine of Rs 3 lakh on an auditor for lapses in the audit of SRS Real Infrastructure Ltd (SRSRIL) for the 2017-18 financial year.
