NFRA bans CA for 3 years due to lapses

NEW DELHI: The National Financial Reporting Authority (NFRA) has barred chartered accountant Som Prakash Aggarwal from undertaking audit work for three years, while imposing a fine of Rs 3 lakh for “serious lapses” in the audit of Vikas WSP, the guar gum powder manufacturer.

Aggarwal has been held guilty of professional misconduct on multiple counts, an order issued on Monday said.
The NFRA, which is tasked with looking into audit work by firms and chartered accountants of listed and large companies, took up the case after the markets regulator shared information with it for the fiscal year 2019-20.

According to the order, the chartered accountant had failed to report non-recognition of interest costs pertaining to borrowings of the company, classified as non-performing assets by the lenders. This was a major failure as the interest cost added up to approximately 88% of the reported profit before tax.