logo
ICAI to review Gensol and BluSmart financial statements

ICAI to review Gensol and BluSmart financial statements

Time of India23-04-2025
The Institute of Chartered Accountants of India (
ICAI
) has decided to review the financial statements of
Gensol Engineering Ltd
and
BluSmart Mobility Pvt Ltd
for the financial year 2023–24, following serious allegations of
financial misconduct
and governance lapses involving the two companies.
The move was confirmed by ICAI president Charanjot Singh Nanda, who said the decision was taken during a board meeting of the Financial Reporting Review Board (FRRB) on Wednesday.
Nanda told PTI that the FRRB decided to undertake a review of the financial statements and the statutory auditor's report of Gensol Engineering and BluSmart Mobility for the financial year 2023-24.
The FRRB's mandate includes assessing compliance with accounting standards, standards on auditing, and schedules II and III of the Companies Act, 2013.
It also evaluates adherence to various guidance notes and RBI-issued master directions.
Gensol Engineering recently came under regulatory scrutiny after the Securities and Exchange Board of India (Sebi) issued a market ban on the company's promoters, Anmol Singh Jaggi and Puneet Singh Jaggi. The order, issued on April 15, alleged that the promoters siphoned off loan funds from the publicly-listed firm for personal gain, raising serious concerns about corporate governance and potential financial misconduct.
BluSmart Mobility, which operates a ride-hailing service, is also promoted by Anmol Singh Jaggi.
In case the FRRB identifies significant accounting irregularities during its review, the matter will be referred to ICAI's Director Discipline for a detailed investigation. The findings may also be shared with relevant regulatory authorities.
Meanwhile, the ministry of corporate affairs said on April 21 that it will consider taking appropriate action against Gensol Engineering after examining Sebi's order.
Under the Companies Act, 2013, the ministry has powers to act on corporate violations, which may include inspections by the Registrar of Companies or a probe by the Serious Fraud Investigation Office (SFIO) in more serious cases.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
Master Value & Valuation with ET! Learn to invest smartly & decode financials. Limited seats at 33% off – Enroll now!
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Paytm swings into black, makes Rs 123 crore net profit in Q1 of FY26
Paytm swings into black, makes Rs 123 crore net profit in Q1 of FY26

New Indian Express

time31 minutes ago

  • New Indian Express

Paytm swings into black, makes Rs 123 crore net profit in Q1 of FY26

MUMBAI: One 97 Communications, the parent company of Paytm, has reported a consolidated net profit of Rs 123 crore in the June quarter as against a net loss of Rs 839 crore a year ago, boosted by strong lending business that helped it report Rs 1,918 crore in revenue, up 28%, and a tight leash on expenses. The year-ago quarter saw the company taking the full impact of the RBI direction, which came into force from mid-February 2024, to shutter its key payments business for not properly following the KYC norms and a host of other failures despite repeated warnings. Operating revenue for the quarter stood at Rs 1,918 crore, growing 28% on-year and marginally up from Rs 1,911 crore in Q4 of FY25. Total income, which includes other income, rose to Rs 2,159 crore. Contribution profit (sales revenue minus all variable costs) rose 52% to Rs 1,151 crore, with contribution margin expanding to 60%, up from 50% a year earlier. Total expenses came in at Rs 2,016 crore, 19 percent lower than Rs 2,476 crore in the year-ago period, aided by tighter control over employee and marketing spends. Net payment revenue rose 38% to Rs 529 crore, driven by an expanding base of high-quality subscription merchants and better payment processing economics, the company said in a statement Tuesday.

RBI's financial inclusion index hits 67 in March 2025, reflecting growth
RBI's financial inclusion index hits 67 in March 2025, reflecting growth

Business Standard

timean hour ago

  • Business Standard

RBI's financial inclusion index hits 67 in March 2025, reflecting growth

The Reserve Bank of India's (RBI) financial inclusion index, which captures the extent of financial inclusion across the country, has increased to 67 as of March 2025, compared to 64.2 as of March 2024, with growth witnessed across all sub-indices – access, usage, and quality, the central bank said on Tuesday. 'Improvement in the financial inclusion index in FY25 is contributed by usage and quality dimensions, reflecting the deepening of financial inclusion, and sustained financial literacy initiatives,' RBI said in its statement. 'The steady rise in the Financial Inclusion Index to 67 is a clear indication that India is moving beyond access to real usage and trust in financial services. It reflects the success of ecosystem-wide efforts to bring underserved communities into the formal financial fold, not just digitally, but meaningfully,' said Deepak Verma, MD & CEO, FINDI. The FI Index is a comprehensive index incorporating details of banking, investments, insurance, postal, as well as the pension sector, in consultation with the government and respective sectoral regulators. The index captures information on various aspects of financial inclusion in a single value ranging between 0 and 100, where 0 represents complete financial exclusion and 100 indicates full financial inclusion. The FI Index comprises three broad parameters: Access, with a 35 per cent weightage; Usage, with a 45 per cent weightage; and Quality, with a 20 per cent weightage.

Public sector bank NPAs drop to 2.58% from 9.11% in 4 yrs: Finance ministry
Public sector bank NPAs drop to 2.58% from 9.11% in 4 yrs: Finance ministry

Business Standard

timean hour ago

  • Business Standard

Public sector bank NPAs drop to 2.58% from 9.11% in 4 yrs: Finance ministry

The gross non-performing assets (NPAs) of public sector banks (PSBs) have shown a consistent decline over the past five financial years. According to government data, gross NPAs reduced from 9.11 per cent in March 2021 to 2.58 per cent in March 2025. In a statement issued on Tuesday, the Ministry of Finance said, "Both the government and the Reserve Bank of India (RBI) have introduced several measures to tackle the issue of rising NPAs and improve recovery rates." Listing out the measures, the statement added, "A fundamental shift in credit discipline through the Insolvency and Bankruptcy Code (IBC), which has reshaped the borrower-creditor relationship. This law has stripped defaulting promoters of control over their companies and barred wilful defaulters from participating in the resolution process. Additionally, personal guarantors of corporate debtors are now covered under the IBC." It further said, "Amendments to existing laws such as the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 and the Recovery of Debts and Bankruptcy Act to make them more effective in recovery proceedings." Focus on high-value cases The government also increased the financial limit for cases handled by Debt Recovery Tribunals (DRTs) from ₹10 lakh to ₹20 lakh, as per the finance ministry. This allows DRTs to concentrate on higher-value accounts, thereby improving recovery for banks and financial institutions. Besides, public sector banks have established dedicated verticals and branches for stressed asset management. These specialised units focus on active monitoring and targeted recovery of NPAs. Measures like deploying business correspondents and the "Feet-on-Street" model have further supported this effort. RBI's prudential framework To ensure early detection and resolution of stressed assets, RBI issued a Prudential Framework, which requires timely recognition, reporting, and resolution. It also encourages banks to act swiftly by offering incentives for early implementation of resolution plans. Banks follow strict procedures for property valuation according to RBI guidelines. These include: Having a board-approved policy to ensure valuations are conducted by independent, qualified valuers. Creating a panel of professional valuers with the required credentials and maintaining a register of these valuers. Conducting property valuations before loan sanctions and again before selling assets under SARFAESI. "For properties worth ₹50 crore or more, banks must obtain at least two independent valuation reports. After taking possession of an asset from a defaulting borrower, valuation is done again before disposal," said the statement. RBI also encourages the use of e-auctions for the sale of such properties to attract more bidders and achieve better price discovery.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store