ICAI Likely To Conclude Review Of Gensol Engineering And BluSmart Financials In 6 Months

The FRRB’s mandate includes checking adherence to Accounting Standards, Standards on Auditing, and key provisions of the Companies Act, 2013, specifically Schedules II and III

The case may also be referred to other appropriate regulatory authorities, depending on the severity of the findings

Source : BluSmart

The Institute of Chartered Accountants of India (ICAI) is expected to complete its review of the financial statements of Gensol Engineering Ltd and BluSmart Mobility within six months, according to a PTI report citing officials familiar with the process. The apex body of chartered accountants, through its Financial Reporting Review Board (FRRB), is currently examining the financial reports of both companies for the financial year 2023–24.

The scrutiny follows recent regulatory developments involving Gensol Engineering, which has come under fire for alleged financial irregularities and governance failures. The Securities and Exchange Board of India (SEBI) recently issued an order barring Gensol’s promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from participating in the securities market due to suspected fund diversion and misuse of company resources.

BluSmart Mobility

Anmol Singh Jaggi is also a promoter of BluSmart Mobility, an electric vehicle-based ride-hailing startup, which is under ICAI's lens as part of the same review initiative. Though BluSmart itself has not been named in SEBI’s enforcement action, the company’s financials are being evaluated by the FRRB for compliance with applicable accounting and auditing standards.

The FRRB’s mandate includes checking adherence to Accounting Standards, Standards on Auditing, and key provisions of the Companies Act, 2013, specifically Schedules II and III. It also reviews compliance with RBI-issued master circulars and guidance notes relevant to the preparation and presentation of financial statements.

Should the board uncover any significant financial discrepancies or violations, ICAI will escalate the matter to its Director (Discipline) for further investigation. The case may also be referred to other appropriate regulatory authorities, depending on the severity of the findings.

Meanwhile, the Ministry of Corporate Affairs (MCA) has stated it is examining SEBI’s order and will determine the next course of action after a thorough review. SEBI’s order, issued on April 15, alleges that Gensol Engineering’s promoters siphoned off loan funds for personal gain, raising serious concerns about financial mismanagement and corporate governance.