Albert Ltd. is a multinational company having various subsidiaries and associate companies. Albert Ltd. approached ABCD Bank for loan of 100 crores…

Albert Ltd. is a multinational company having various subsidiaries and associate companies. Albert Ltd. approached ABCD Bank for loan of 100 crores to be utilised for business purposes, which will enhance company's profits. To lend 100 crores, bank required strong projected cash flows. However, the current projected statement of cash flows of Albert Ltd. did not satisfy the bank's criteria for lending, but directors assured the bank that the company is in an excellent financial position and the financial results and cash flow projections will meet the criteria. CA Tarun, senior manager in Albert Ltd., prepared a report showing cash flow projections meeting the bank's criteria under directors' pressure and submitted it to the bank. If CA Tarun refuses to do so, he may lose his job. By knowingly disclosing incorrect information to the bank, which fundamental principles were compromised by CA Tarun?