The Institute of Chartered Accountants of India (ICAI) is conducting an audit review of the financial statements of Gensol Engineering and IndusInd Bank. According to ICAI President Charanjot Singh Nanda, the process is progressing satisfactorily, and the final report is expected to be released in November, a month ahead of the initial expected release in December. The ICAI’s Financial Reporting Review Board (FRRB) is leading the investigation into the audit reports of Gensol Engineering, and based on their recommendations, the disciplinary committee will further investigate the matter.
In addition to Gensol Engineering, the ICAI is also reviewing the financial statements of IndusInd Bank for the years 2023-24 and 2024-25. The FRRB is conducting this review as well. The ICAI is taking these steps to ensure the accuracy and transparency of financial reporting in India.
The ICAI is also investigating the audit of BYJU’S, a beleaguered edtech company. The FRRB has reported gross negligence in BYJU’S financial reporting and has recommended punitive action against the concerned auditors. This investigation was prompted by the resignation of Deloitte as BYJU’S statutory auditor in June 2023, citing delays in finalizing the company’s financial statements for FY22. Later, MSKA & Associates, who were appointed by BYJU’S, also resigned, alleging delays in financial reporting and lack of support from management, as well as concerns about outstanding dues.
The ICAI’s disciplinary committee will further investigate the matter and take necessary actions. The institute’s efforts to investigate and address audit lapses in companies like BYJU’S, Gensol Engineering, and IndusInd Bank demonstrate its commitment to maintaining the integrity of financial reporting in India. The expected release of the final report in November will provide more clarity on the findings and recommendations of the ICAI. Overall, the ICAI’s actions aim to promote transparency and accountability in financial reporting, which is essential for maintaining investor confidence and ensuring the stability of the financial system.