Veda Ltd., a listed company having headquarter in Delhi, is engaged in the production and supply of unique chemicals to various industries. To…

In the given situation, Veda Ltd., a listed company, has installed pollution control equipment to process industrial waste and ensure compliance with environmental regulations. However, despite these measures, the company continues to violate pollution control laws regarding the disposal of industrial waste. To obtain an environmental clearance certificate, the company resorted to unethical means, unlawfully incurring - 43.85 lakhs, which was misrepresented in the financial records as an environmental compliance expense. CA Rohan, Director Finance, came to know about 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 Rohan, 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. By following these steps, CA Rohan can ensure ethical compliance while upholding professional integrity under the NOCLAR framework.