2023 Supreme(Online)(NCAT) 1247
NATIONAL COMPANY LAW APPELLATE TRIBUNAL
PRINCIPAL BENCH, NEW DELHI
COMPANY APPEAL (AT) NO. 68 of 2023
I.A. No.2007-2009 of 2023
(Arising out of the Order dated 13.04.2023 passed by the National
Financial Reporting Authority in Nf-21/1/2022/03.)
Partner, K. Varghese & Co.
Chartered Accountants (Firm Registration
7/720 C 56, Land World Centre,
2nd Floor, S M Street, Calicut,
National Financial Reporting Authority
7th-8th floor, Hindustan Times House,
18-20 Kasturba Gandhi Marg.
For Appellant: Sr. Advocate P.H. Arvindh Pandian with Mr.
Goutham Shivshankar, Sharamya Sinha, Adit
For Respondent: Mr. Zoheb Hussain, Advocate.
COMPANY APPEAL (AT) NO. 87 of 2023
I.A. No. 2401-2403 of 2023
(Arising out of the Order dated 31.03.2023 passed by the National
Financial Reporting Authority in Nf-21/1/2022/02.)
ICAI Membership No. 220163
Partner, K. Varghese & Co.,
Chartered Accountants (Firm Registration
Sageti Business Centre, II Floor,
Choolackal Building, Opposite Metro Plaza,
North Market Road, Ernakulam – 682011.
Mail :avnatamton@yahoo.co.in
National Financial Reporting Authority
7th-8th floor, Hindustan Times House,
18-20 Kasturba Gandhi Marg
For Appellants: CA CV Sajan & Mr. Rishi Singhal, Adv
For Respondents: Mr. Zoheb Hussain, Ms. Farheen Penwale,
Mr. Vivek Gurnani and Mr. Kvaish Garach,
COMPANY APPEAL (AT) NO. 90 of 2023
I.A. No. 2410-2412 of 2023
(Arising out of the Order dated 13.04.2023 passed by the National
Financial Reporting Authority in Nf-21/1/2022/06.)
ICAI Membership No. 216637,
Partner, K. Varghese & Co.
Chartered Accountants (Firm Registration No. :
Flat no. G-6, New No. 8, Arvind Narain,
Masilamani Street, Pondybazar,
National Financial Reporting Authority
7th-8th floor, Hindustan Times House,
18-20 Kasturba Gandhi Marg
For Appellants: CA CV Sajan and Mr. Rishi Singhal,
For Respondents: Mr. Zoheb Hussain, Ms. Farheen Penwale,
Mr. Vivek Gurnani and Mr. Kvaish Garach,
COMPANY APPEAL (AT) NO. 91 of 2023
I.A. No. 2413-2415 of 2023
(Arising out of the Order dated 12.04.2023 passed by the National
Financial Reporting Authority in Nf-21/1/2022/05.)
IN THE MATTER OF:CA SAM VARGHESE
ICAI Membership No. 216979,
Partner, K. Varghese & Co., Chartered
Accountants (Firm Registration No. : 004525S)
I Floor, Sree Krishna Jyothi Baker Complex,
S N Women’s College Road, Kollam – 691001.
National Financial Reporting Authority
7th-8th floor, Hindustan Times House,
18-20 Kasturba Gandhi Marg
For Appellants: CA CV Sajan & Rishi Singhal, Advocates.
For Respondents: Mr. Zoheb Hossain Adv.
[NARESH SALECHA, Member (TECHNICAL)]
Appellant in all the four cases.
Allegations 1. Acceptance of 1. Acceptance of 1. Acceptance 1. Acceptance of audit audit of audit audit engagement engagement engagement engagement without valid without valid without valid without valid authorisation and authorisation authorisation and authorisation without and without without and without complying with complying with complying with complying with ethical ethical ethical ethical requirements;
requirements; requirements; requirements; and issuing audit and issuing and issuing audit and issuing report in audit report in report in audit report in violation of the violation of the violation of the violation of the Act
2. Failure to 2. Failure to 2. Failure to 2. Failure to comply with comply with comply with comply with Standards on Standards on Standards on Standards on
Auditing (SAs) Auditing (SAs) Auditing (SAs) Auditing (SAs)
SA SA 210 SA 210 SA 210 210“Agreeing “Agreeing the “Agreeing the “Agreeing the the Terms of Terms of Audit Terms of Audit Terms of Audit
Audit Engagements” Engagements” Engagements”
SA 230 “Audit SA 230 “Audit SA 230 “Audit
SA 230 “Audit Documentation” Documentation” Documentation”
SA 700 “Forming an “Forming “Forming
“Forming an Opinion and an Opinion an Opinion
Opinion and Reporting on and and
Reporting on Financial Reporting Reporting
Non-compliance Non- Non-compliance
Non-compliance with other SAs compliance with other SAs with other SAs with other SAs
Company Appeal (AT) No. 68 of 2023 &
I.A. No. 2007-2009 of 2023
[Arising out of Order dated 13.04.2023 passed by the National Financial
Reporting Authority, in Nf-21/1/2022/03.]
Company Appeal (AT) No. 87 of 2023 &
I.A. No. 2007-2009 of 2023
[Arising out of Order dated 13.04.2023 passed by the National Financial
Reporting Authority, in Nf-21/1/2022/03.]
Company Appeal (AT) No. 90 of 2023 &
I.A. No. 2007-2009 of 2023
[Arising out of Order dated 13.04.2023 passed by the National Financial
Reporting Authority, in Nf-21/1/2022/03.]
Company Appeal (AT) No. 91 of 2023 &
I.A. No. 2007-2009 of 2023
[Arising out of Order dated 13.04.2023 passed by the National Financial
Reporting Authority, in Nf-21/1/2022/03.]
Appeals under Section 132(5) of the Companies Act, 2013.
a.) CA. Harish T.K was assigned branch audit work as EP of three branches of M/s DHFL at Thrissur, Kotayyam and Coimbatore.
b.) CA. Ayna Tamtam was assigned branch audit work as EP of two branches of M/s DHFL at Kannur and Calicut.
c.) CA. M. Baskaran was assigned branch audit work as EP of nine branches of M/s DHFL at Zone Tamil Nadu, RPU Chennai, Chennai,
Chennai Metro, Chennai OMR, Chennai Sales Vertical, Chennai
Tambaram, Chennai Kodambakkam and Parrys.
d.) CA. Sam Varghese was assigned branch audit work as EP of two branches of M/s DHFL at Kochi, Kerala.
M/s. Rajinder Neeti & Associates.
and did not carry out any Branch Audit thereafter, the Firm was involved in
Branch Audit for 5 years from 2014-15 to 2018-19.
FY 2016-17, 2017 - 18 and 2018-19.
and the firm submitted the same to NFRA on 25.08.2022.
(i) Failure to ascertain from the DHFL, whether the requirements of Sections 139 & 140 of the Companies Act, 2013 in respect of such appointment have been duly complied with.
(ii) Failure to disclose the material facts known to the Appellants which were not disclosed in the Financial Statements but disclosure of which was necessary in professional capacity.
(iii) Failure to exercise due diligence and acted being grossly negligent in the conduct of professional duties.
(iv) Failure to obtain sufficient information which was necessary for the expression of an opinion.
(v) Failure to invite attention to material departure
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