ICAI to review financial statements of Yes Bank for FY18, FY19

The Financial Reporting Review Board (FRRB) of the Institute of Chartered Accountants of India (ICAI) has decided to take up a review of general-purpose financial statements of Yes Bank for the last two fiscals.

"In view of the recent media reports as regards certain systemic issues with respect to Yes Bank, FRRB of the ICAI has decided to take up the review of general-purpose financial statements of Yes Bank for Financial Year 2017-18 and 2018-19," an official statement said on Wednesday.

It said that in case the FRRB finds any material or serious non-compliance, it would refer the case to the Director (Discipline) of ICAI for initiating action against the Auditor under the Chartered Accountants Act, 1949.

"In so far as the management of the enterprise is concerned, the FRRB would inform irregularity to the regulatory body relevant to the enterprise. In case non-compliances observed are not material and do not affect the true and fair view of financial statements, the FRRB would appropriately bring the non-compliance to the attention of the Auditor," the statement said.

Yes Bank founder Rana Kapoor is under the custody of the Enforcement Directorate after his arrest last week in connection with the alleged financial irregularities of Yes Bank and DHFL.

Last week, the RBI suspended the board of directors at India's fourth-largest private bank and imposed the withdrawal limit on account holders till April 3 citing its poor financial health due to bad loans.