Shri Limited, a listed Company, having its registered office at Mumbai is engaged in manufacturing of various types of yarns to be supplied to the…

Of pollution below the prescribed standard. The company managed to get pollution certificate by unfair means whereas breach of pollution control laws still continues. For arranging clearance certificate amount of 18.75 lacs had been incurred unlawfully. CA Gopal, Director Finance, came to know of these matters on review of the same during the period. NOCLAR, under Code of Ethics, is applicable on professional accountants in service, and in practice. Among those in practice, it applies to Auditors, as well as professional services other than Audit. It is applicable to Senior Professional Accountants in service, being employees of listed entities. Senior professional accountants in service (“senior professional accountants”) includes directors. NOCLAR takes into account non-compliance that causes substantial harm resulting in serious consequences in financial or non-financial terms. As per NOCLAR, in exceptional circumstances, the professional accountant might become aware of an imminent breach of a law or regulation that would cause substantial harm to investors, creditors, employees or the general public. Having first considered whether it would be appropriate to discuss the matter with management or those charged with governance of the company, the accountant shall exercise professional judgment and determine whether to disclose the matter immediately to an appropriate authority in order to prevent or mitigate the consequences of such imminent breach. If disclosure is made, that disclosure is permitted. CA Gopal, Director-Finance is expected of taking the following action/responses: Obtaining an understanding of the Matter.Addressing the matter.Seeking advice.Determining whether further action is needed.Determining whether to disclose the matter to an Appropriate Authority.Imminent breach.Documentation.