ICAI to Review IndusInd Bank, Gensol Audits

New Delhi, Jun 18 (PTI) Chartered accountants' apex body ICAI on Wednesday said it will take at least six months to complete the review of the financial statements of fraud-hit IndusInd Bank and Gensol Engineering and ascertain whether there were audit lapses at the two entities.

ICAI's Financial Reporting Review Board (FRRB) has started reviewing the financial statements of the two entities and depending on the findings, disciplinary action will be initiated against the auditors concerned.

"(FRRB) will take at least six months or more to come to a conclusion on what is happening. It is a long drawn process...," ICAI President Charanjot Singh Nanda said while responding to a query on IndusInd Bank and Gensol.

FRRB is reviewing the IndusInd Bank's financial statements for 2023-24 and 2024-25 and that of Gensol Engineering and BluSmart Mobility for 2023-24.

If the FRRB finds that the books of the entities were not true and fair, the matter will be referred to ICAI's disciplinary committee for further action.

Starting with a March 10 disclosure about a potential hit to the net worth because of incorrect recognition of derivative trades over the last two years, the last two months have been tumultuous for IndusInd Bank.

In March, the bank reported a Rs 1,979 crore accounting lapse in its derivative portfolio, followed by its internal audit review finding that Rs 674 crore was incorrectly recorded as interest from microfinance business, besides a Rs 595 crore "unsubstantiated balances" in "other assets" of balance sheet.

Gensol Engineering has come under the regulatory scanner for alleged fund diversions and governance lapses, with regulator Sebi barring the company's promoters Anmol Singh Jaggi and Puneet Singh Jaggi from the securities market for various violations. BluSmart Mobility, which offers ride-hailing services, is promoted by Anmol Singh Jaggi.

Nanda also informed that ICAI will host the GCC Summit Series on the theme "From Ledger to Global Leadership: Chartered Accountants Shaping Global Capability Centres".

In this series, the first summit will be held in New Delhi on June 27–28, 2025, with regional editions to follow in Ahmedabad (GIFT City), Mumbai and Hyderabad.

The initiative aims to reinforce India's growing leadership in the Global Capability Centres (GCC) ecosystem, highlighting the critical and evolving role of Indian Chartered Accountants in the global services landscape.

The summit series will bring together industry stalwarts, policymakers, academicians and global stakeholders to discuss emerging trends, foster strategic partnerships and catalyse innovation in the GCC space.

ICAI said several government bodies have extended their support to the GCC Summit Series as Eco Partners, including the Ministry of External Affairs (MEA), Ministry of Electronics and Information Technology (MeitY), IFSCA, SEPC, Invest India, NSDC, and IIM Sambalpur.

With over 1,800 GCCs currently operating in India and employing more than 1.9 million professionals, the country has firmly positioned itself as a global hub for finance, innovation, and business operations.

"India is uniquely positioned to lead the next phase of the GCC evolution. Chartered Accountants are central to driving digital finance, regulatory integrity and global governance," Nanda said.

ICAI, this year, has constituted a dedicated group under its Directorate of International Trade, Services & WTO to promote India as a global hub for accounting and finance-focused GCCs. This initiative seeks to strengthen the contribution of Chartered Accountants in finance leadership and global operations, leveraging Bharat's skilled talent pool to build a GCC-ready workforce.

Chartered accountants, Nanda said, are playing a pivotal role in delivering strategic and operational excellence in areas like finance, compliance, taxation, risk management, governance, and business analytics. Their growing presence and influence within GCCs underscore their importance in navigating today's complex global business environment.