The Institute of Chartered Accountants of India (ICAI) Disciplinary Committee (Bench-II) has imposed a fine of Rs. 25,000 on CA. Mohammad Shahbaz Ansari for professional misconduct. The committee found Mr. Ansari guilty under Item (8) of Part I of the First Schedule to the Chartered Accountants Act, 1949. This specifically relates to his acceptance of the statutory auditor position for seven entities for the financial year 2019-20 without first formally communicating in writing with the previous auditor, CA. Anupam Sharma. While Mr. Ansari appeared at the hearing on April 10, 2024, and claimed his actions were in good faith, he failed to provide evidence of the required communication. The ICAI committee determined that this omission violated the Code of Ethics, leading to the imposition of the fine. The order, dated May 28, 2024, requires the fine to be paid within 60 days of its receipt.
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
(Set up by an Act of Parliament)
PR-305/2021-0D/311/2021/DC/1751/2023
[DISCIPLINARY COMMITTEE [BENCH-II (2024-2025)]
[Constituted under Section 218 of the Chartered Accountants Act, 1949]
ORDER UNDER SECTION 21B (3) OF THE CHARTERED ACCOUNTANTS ACT, 1949 READ WITH RULE 19(1) OF THE CHARTERED ACCOUNTANTS (PROCEDURE OF INVESTIGATIONS OF PROFESSIONAL AND OTHER MISCONDUCT AND CONDUCT OF.CASES) RULES, 2007
In the matter of:
CA Anupam Sharma, Partner, M/s Anupam Ramesh & Associates, Chartered Accountants … Complainant
Versus
CA Mohammad Shahbaz Ansari, Proprietor, M/s Mohammad Shahbaz & Associates, Chartered Accountants … Respondent.
Members Present: –
CA. Ranjeet Kumar Agarwal, Presiding Officer (in person)
Mrs. Rani S. Nair, IRS (Retd.), Government Nominee (through VC)
Shri Arun Kumar, IAS (Retd.), Government Nominee (in person)
CA. Sanjay Kumar Agarwal, Member (in person)
CA. Cotha S Srinivas, Member (through VC)
Date of Hearing :10th April, 2024
Date of Order : 28th May, 2024
1. That vide Findings under Rule 18(17) of the Chartered Accountants (Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases) Rules, 2007, the Disciplinary Committee was, inter-alia, of the opinion that Mohammad Shahbaz Ansari (hereinafter referred to as the ‘Respondent’) is GUILTY of Professional Misconduct falling within the meaning of Item (8) of Part I of the First Schedule to the Chartered Accountants Act, 1949.
2. That pursuant to the said Findings, an action under Section 21B (3) of the Chartered Accountants (Amendment) Act, 2006 was contemplated against the Respondent and a communication was addressed to him thereby granting opportunity of being heard in person I through video conferencing and to make representation before the Committee on 10th April 2024.
3. The Committee noted that on the date of the hearing held on 10th April 2024, the Respondent was present through video conferencing and made his verbal representation on the Findings of the Disciplinary Committee, inter-alia, stating that whatever he did was in a bona-fide faith. The Complainant was aware about his appointment in the Company wherein he was the previous auditor. The Respondent requested the Committee to take lenient view in his case.
4. The Committee considered the reasoning as contained in the Findings holding the Respondent Guilty of Professional Misconduct vis-a-vis verbal representation of the Respondent.
5. Thus, keeping in view the facts and circumstances of the case, material on record including verbal representation on the Findings, the Committee noted that the Respondent failed to bring on record any evidence of communication with the Complainant which was imperative on his part in terms of Code of Ethics. Thus, the Committee held that the Respondent has accepted the position of Statutory Auditor of the seven entities namely, M/s AL-Faheem Meatex Private Limited, M/s AL-Fozan Meatex Export Private Limited, M/s AL-Ayyub Exports Private Limited, M/s Grand Indian Overseas Poultry Private Limited, M/s Perfect Premium Dairy Products Private Limited, M/s Indraprastha Educational and Cultural Society and M/s Yaqoob Educational Charitable Trust for financial year 2019-20 without first communicating with the Complainant being the previous auditor in writing.
5.1 Hence, professional misconduct on the part of the Respondent is clearly established as spelt out in the Committee’s Findings dated 7th February 2024 which is to be read in consonance with the instant Order being passed in the case.
6. Accordingly, the Committee was of the view that ends of justice will be met if punishment is given to him in commensurate with his professional misconduct.
7. Thus, the Committee ordered that a Fine of Rs. 25,000/- (Rupees Twenty-Five Thousand only) be imposed upon CA. Mohammad Shahbaz Ansari payable within a period of 60 days from the date of receipt of the Order.
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(CA. RANJEET KUMAR AGARWAL)
PRESIDING OFFICER
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(MRS. RANI S. NAIR, IRS RETD.)
GOVERNMENT NOMINEE
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(SHRI ARUN KUMAR, IAS RETD.)
GOVERNMENT NOMINEE
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(CA. SANJAY KUMAR AGARWAL)
MEMBER
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(CA. COTHA S SRINIVAS)
MEMBER
