New Delhi, Jun 22 (PTI) The National Financial Reporting Authority (NFRA) has penalised as well as imposed a one-year ban on a chartered accountant for professional misconduct in connection with the audit work of Prabhu Steel Industries Ltd (PSIL).

The lapses pertain to the performance of Gulshan Jagdish Jham as a statutory auditor of PSIL for the financial year 2019-20.

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In an order dated June 21, NFRA imposed a fine of Rs 1 lakh on Jham.

He has also been debarred for "one year from being appointed as an auditor or internal auditor or undertaking any audit in respect of financial statements or internal audit of the functions and activities of any company or body corporate".

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The CA has been charged with professional misconduct of failure to disclose material facts known to him which is not disclosed in a financial statement, but disclosure of which is necessary in making such a financial statement, where he is concerned with that financial statement in a professional capacity.

It also charged Jham for failure to exercise due diligence and being grossly negligent in the conduct of professional duties among others.

"The CA in this case is a small proprietorship firm not having any other listed company audit. Based on the principle of proportionality, the sanctions are being made keeping in mind the nature and size of the audit firm and the fact that he has accepted all the charges," the order said.

NFRA is an independent regulator for the auditing profession which comes under the Ministry of Corporate Affairs.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)