ICAI Disciplinary Committee found CA guilty of Professional Misconduct for reporting wrong Turnover

ICAI Disciplinary Committee found CA guilty of Professional Misconduct for reporting wrong Turnover The Institute of Chartered Accountants of India(ICAI) has found Chartered Accountant Vikas Mohanlal Bhangdia guilty of Professional Misconduct for reporting the wrong Turnover in the Certificate.

FINDINGS:

On perusal of papers on record, it is noted by the Committee that the Respondent had iss1Jed the certificate dated 14th August, 2015 stating turnover for the years 2012-13 to 2014-15 wherein Annual turnover was mentioned on the basis of the ITR filed with Income Tax Department & other records. The Committee noted that the Informant has alleged variation In turnover in the said certificate in question for the year 2014-15. The turnover mentioned in Certificate was Rs. 28.70 crores for F.Y 2014-15, while as per the audited Balance Sheet of the Company for the year 2014-15 total gross receipts were Rs. 15.28 crores less Vat collected Rs. 0.62 crores making net Receipts to Rs. 14.66 crores. It is also noted that the Respondent had considered in his certificate an amount of Rs. 13.42 crores towards consignment sales on trading of paddy in addition to contract receipts. The Committee noted that on, perusal of Profit & Loss A/c, it was clear that there was no item in the name of consignment sales, however, there was commission income appearing against such consignment sales. Respondent in respect of inclusion of such sales failed to mention anything in the Certificate. He merely mentioned that he had taken figures on the basis of audited books of accounts except for year 2014-15. There was clearly an  ambiguity in said certificate by not disclosing of material information. The Respondent was required to mention inclusion of paddy sales for computing turnover in his certificate. The Bench was convinced that the entity was able to secure the contract with the certificate issued by the Respondent without disclosing the true facts relating to the turnover and therefore the Respondent was held Guilty of professional misconduct falling Within the meaning of Item (7) of Part I of the Second Schedule to the Chartered Accountants Act, 1949 .

CONCLUSION:

Thereafter, after-listening to the views of the parties and on considering the documents on ·record, the committee decided to hold the Respondent - CA Vikas Mohanlal Bhangdia GUILTY of professional misconduct falling within the meaning of item (7) of Part I of the Second Schedule to the Chartered Accountants Act, 1949. To Read Official Order Download PDF Given Below: