ICAI Initiates Review Of Gensol And BluSmart's Books
The review will examine Gensol’s financial disclosures and probe allegations of misstatements in its filings.
The Institute of Chartered Accountants of India has initiated a suo motu review of the financial records of Gensol Engineering Ltd. and its affiliate, BluSmart Mobility, beginning from the financial year 2022-23.
A financial reporting review board comprising of up to eight members has been formed to look through the books of Gensol and BluSmart. The board will be led by Vishal Doshi, practice leader - audit and assurance at KC Mehta & Co, an ICAI representative said.
The review will examine Gensol’s financial disclosures and probe allegations of misstatements in its filings. It will also assess the conduct of the statutory auditors involved in reviewing Gensol’s financials during the period under scrutiny.
To add some context, Gensol's statutory auditor for the period under consideration was Ahmedabad-based K C Parikh & Associate. In September 2024, the Gensol board had proposed to appoint Mumbai-based Suresh Surana & Associates.
In its 2024 annual report, Gensol had also said that it had appointed Ahmedabad's Talati & Talati LLP to "closely monitor the adequate internal financial controls with reference to the financial statements."
It had gone on to say that in fiscal 2024, such controls were evaluated and no reportable deficiency in the design or operation of such controls was observed.
The ICAI—which is India's professional accounting body under the Ministry of Corporate Affairs—is probing the financials and auditors, and the review may be escalated to the institute's disciplinary committee, depending on the findings.
If referred, the committee could consider further action against the auditors.
