Initial review of IndusInd and Gensol to be over in 6 months: ICAI

ICAI's FRRB reviewing financials of IndusInd Bank and Gensol Engineering; summit series planned; early warning signs of fraud under review with Sebi and NSE

The Institute of Chartered Accountants of India (ICAI) is likely to complete an initial review of IndusInd and Gensol Engineering in six months, said its president on Wednesday.

 

Charanjot Singh Nanda spoke to reporters in New Delhi after announcing global capability centres (GCC) summits that ICAI will host later this month in New Delhi, Ahmedabad (GIFT City), Mumbai and Hyderabad.

 

ICAI’s Financial Reporting and Review Board (FRRB) recently undertook a review of IndusInd Bank’s financial statements and the statutory auditor’s reports on the lender for FY24 and FY25. FRRB is also reviewing Gensol Engineering and BluSmart Mobility, which are linked companies, for FY24 on its own.

 

The FRRB will make recommendations to the disciplinary committee on whether action is required to be taken against professionals involved in vetting the companies’ finances. The FRRB reviews compliance with the reporting requirements of various applicable statutes, Accounting Standards, Standards on Auditing. 

 

Nanda said an Indian version of Big 4 can be achieved by merging companies or forming a new one altogether, but it would require regulatory support.

 

“We need to have an equitable field and then the government would have to provide support to the Indian firms. We have the talent pool and are fully equipped to achieve this,” Nanda said.

 

The ICAI, along with the Securities and Exchange Board of India (Sebi) and the National Stock Exchange (NSE), is in the process of determining early warning signs of fraud and lapses in companies.

 

“These will primarily be for listed companies but can be used by all companies as they will provide a template,” Nanda said.

 

Nanda said the ICAI has formed a dedicated group focused on promoting India as a global accounting and finance hub for GCCs.

 

He said India hosts over 1,800 GCCs, collectively employing more than 1.9 million professionals and contributing over $64 billion annually to the global economy.

 

“The world's leading organisations are not just outsourcing processes to India, they are bringing their most strategic and knowledge-intensive work to our shores,” Nanda added.

 

India is no longer a support centre but the hub of global innovation, cybersecurity, analytics and artificial intelligence-driven innovation.