ICAI to review Gensol and BluSmart financial statements

The Institute of Chartered Accountants of India (ICAI) has determined to review the financial statements of Gensol Engineering Ltd and BluSmart Mobility Pvt Ltd for the financial 12 months 2023–24, following severe allegations of financial misconduct and governance lapses involving the 2 firms.
The transfer was confirmed by ICAI president Charanjot Singh Nanda, who mentioned the choice was taken throughout a board assembly of the Financial Reporting Review Board (FRRB) on Wednesday.
Nanda informed PTI that the FRRB determined to undertake a review of the financial statements and the statutory auditor’s report of Gensol Engineering and BluSmart Mobility for the financial 12 months 2023-24.
The FRRB’s mandate consists of assessing compliance with accounting requirements, requirements on auditing, and schedules II and III of the Companies Act, 2013. It additionally evaluates adherence to numerous steerage notes and RBI-issued grasp instructions.
Gensol Engineering not too long ago got here below regulatory scrutiny after the Securities and Exchange Board of India (Sebi) issued a market ban on the corporate’s promoters, Anmol Singh Jaggi and Puneet Singh Jaggi. The order, issued on April 15, alleged that the promoters siphoned off mortgage funds from the publicly-listed agency for private achieve, elevating severe issues about company governance and potential financial misconduct.
BluSmart Mobility, which operates a ride-hailing service, can also be promoted by Anmol Singh Jaggi.
In case the FRRB identifies vital accounting irregularities throughout its review, the matter can be referred to ICAI’s Director Discipline for an in depth investigation. The findings may be shared with related regulatory authorities.
Meanwhile, the ministry of company affairs mentioned on April 21 that it’s going to contemplate taking applicable motion in opposition to Gensol Engineering after inspecting Sebi’s order.
Under the Companies Act, 2013, the ministry has powers to act on company violations, which can embody inspections by the Registrar of Companies or a probe by the Serious Fraud Investigation Office (SFIO) in additional severe instances.